annual report europ assistance s.r.o....6 annual report of europ assistance s.r.o. for 2018 4....

2018

Annual ReportEurop Assistance s.r.o.

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Annual Report of Europ Assistance s.r.o. for 2018

CONTENTS

General Information ............................................................................................................................................. 4

1. Basic Company Information................................................................................................................. 52. Statutory Body .................................................................................................................................... 53. Supervisory Board .............................................................................................................................. 54. Company Ownership Structure ............................................................................................................ 65. Company Organizational Structure in 2018 .......................................................................................... 66. Company Management Report ............................................................................................................ 77. Business Focus .................................................................................................................................. 88. Research and Development Activities .................................................................................................. 89. Other Important Facts ......................................................................................................................... 810. The Year 2018 in Figures .................................................................................................................... 911. Socially Useful Activities .................................................................................................................... 10

Financial Section................................................................................................................................................ 11

- Auditor's report- Balance sheet as at 31 December 2018- Income statement as at 31 December 2018- Cash flow- Statements of changes in equity

1. Description of the Company .............................................................................................................. 222. Basis of Presentation of the Financial Statements .............................................................................. 223. Summary of Significant Accounting Policies, Accounting Methods and Departures Therefrom ............. 23a) Intangible Fixed Assets ..................................................................................................................... 23b) Tangible Fixed Assets ....................................................................................................................... 23c) Financial Assets ................................................................................................................................ 23d) Receivables ...................................................................................................................................... 24e) Equity ............................................................................................................................................... 24f) Provisions and Liabilities ................................................................................................................... 24g) Leases ............................................................................................................................................. 24h) Foreign Currency Transactions .......................................................................................................... 24i) Use of Estimates ............................................................................................................................... 25j) Recognition of Revenues and Expenses ............................................................................................ 25k) Income Tax ....................................................................................................................................... 25l) Subsequent Events ........................................................................................................................... 25m) Cash Flow Statement ........................................................................................................................ 254. Fixed Assets ..................................................................................................................................... 26a) Intangible Fixed Assets (in CZK thousands) ....................................................................................... 26b) Tangible Fixed Assets (in CZK thousands) ......................................................................................... 265. Receivables ...................................................................................................................................... 276. Allowances ....................................................................................................................................... 277. Short-term Financial Assets and Cash ............................................................................................... 288. Prepaid Expenses and Accrued Income............................................................................................. 289. Equity ............................................................................................................................................... 2810. Provisions ......................................................................................................................................... 2811. Long-term Liabilities .......................................................................................................................... 2812. Current Liabilities .............................................................................................................................. 2913. Accruals and Deferred Income .......................................................................................................... 2914. Income Taxes ................................................................................................................................... 2915. Leases ............................................................................................................................................. 3016. Commitments and Contingencies ...................................................................................................... 3017. Income ............................................................................................................................................. 3118. Personnel and Related Expenses ...................................................................................................... 3119. Related Party Information .................................................................................................................. 3120. Significant Items of Income Statement ............................................................................................... 32

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21. Subsequent Events ........................................................................................................................... 3322. Statement of Changes in Equity (see Note 9) ..................................................................................... 33RELATED PARTY REPORT FOR 2018 ....................................................................................................... 34

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General Information

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1. Basic Company Information

Business name: Europ Assistance s.r.o.Registered office: Na Pankráci 1658/121, 140 00 Prague 4Legal form: Limited Liability CompanyBusiness Registration No. (IČO): 252 87 851Tax Identification No. (DIČ): CZ25287851Insert No.: C 87094 maintained with the Municipal Court in Prague

Auditor: Ernst & Young Audit, s.r.o.

2. Statutory Body

Ing. Vladimír FuchsCompany ExecutiveTerm of office from: 1 June 2011

3. Supervisory Board

László KalmárChairman of the Supervisory BoardTerm of office from: 4 May 2017

Pavol PitoňákMember of the Supervisory BoardTerm of office from: 1 April 2016

Petr BohumskýMember of the Supervisory BoardTerm of office from: 21 May 2015

Josef Benhard WoernerMember of the Supervisory BoardTerm of office from: 25 April 2017

Roberto RavagnaniMember of the Supervisory BoardTerm of office from: 25 April 2017

There were no changes in the members of the Supervisory Board in 2018.

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4. Company Ownership Structure

5. Company Organizational Structure in 2018

Europ Assistance Holding, a joint-stock company

7 bd Haussmann, 750 09 ParisFrance

Registered in the Commercial Register of the Commercial Courtin Paris under registration No. R.C.S. Paris B 632 016 382(2004B22063)

Ownership interest: 75% (Contribution: CZK 2,900,000)

------------------------------------------------------------------------

Česká pojišťovna a.s.Business Registration No. (IČO): 452 72 956Spálená 75/16, 113 04 Prague 1

Insert No.: B 1464 maintained with the Municipal Court in Prague

Ownership interest: 25% (Contribution: CZK 966,666)

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6. Company Management Report

Dear Ladies and Gentlemen,

Europ Assistance achieved solid results and continued to grow its presencein the Czech and Slovak markets in 2018. In 2018, the Company’s staff providedassistance services to clients in 166 thousand cases and attended to more than900,000 phone calls. Thanks to the growing turnover of services, which amountedto CZK 369 million and grew by 28% year on year, the Company recorded profitafter tax of CZK 10,349,000. The turnover grew organically across the entireportfolio of existing business partners. The Company also established newpartnerships. While the Generali group has remained the largest existingcustomer, major new cooperation was established with the insurance companyDirect.

The three most important investment projects in 2018, i.e. the Olomouc branchproject, the DRSA (Digital Roadside Assistance) digitalization project and theLEAN project, significantly strengthened our competitiveness and will help furtherdevelop our services in the coming years.

The opening of a branch in Olomouc in February 2018 allowed for diversificationof operational risks and stabilization of quality. Its positive impact was particularlyapparent in the recruitment of new assistance service coordinators and improvedhandling of peak-time requests. The DRSA auto assistance digitalization project is a unique form of assistanceintervention on the market. The progressive digitalization allowed to reduce the number of calls with suppliers bytens of thousands, make the work of assistance center more efficient and, in particular, reduce intervention timesand shorten the time of arrival of assistance vehicles to clients. All the above not only increased customersatisfaction, but also contributed to better safety of customers whose vehicles constitute obstacles hindering smoothroad traffic at the time they request assistance services. In May 2019, Europ Assistance will be the first companyto provide fully digital assistance interventions in the Czech Republic. In the second half of the year, we launchedthe LEAN project, which will focus on optimizing the processes of individual services over two years with a viewto increasing customer satisfaction and the Company’s productivity.

In 2018, the Company was also actively involved in the activities of the Czech Association of Assistance Companies(CAAC) making a significant contribution to helping clients via the driver assistance hotline (LPŘ 1224) and alsooperating the non-public Police Traffic Accident Center hotline.

In 2018, the Company successfully passed the ISO 27001 supervisory audit and the ISO 9001 supervisory audit,and implemented quality and compliance measures pursuant to the GDPR.

Committed to social responsibility, the Company continued to support certain socially useful activities in 2018;we provided financial support to the ELPIDA center for senior citizens and to the children's home “Země dětí”/Children’s Earth/.

I would like to thank all employees of Europ Assistance for their cooperation and the achieved results. I would alsolike to thank all members of the Supervisory Board for their support, and all business partners and suppliers for theircooperation and mutual inspiration for further development of assistance services.

Ing. Vladimír FuchsCompany Executive

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7. Business Focus

In 2018, the Company continued developing its major business lines:

Cooperation with the Generali group across all service segments Cooperation with existing business partners focusing on sustainable services and solutions Direct distribution of the Company’s own retail products Product innovation

This strategy remains the main focus of the Company in following year.

8. Research and Development Activities

In 2018, the Company focused on the following development areas:

Automation of the vehicle towing service process Data warehouse Digital roadside assistance Virtual agent

These activities will allow faster provision of assistance services, more accurate data delivery to the central accidentregister and better transparency of the service provider selection process. They will further allow for automaticcalculation of the price of an assistance service intervention, better transparency of the reported data and quickerand easier reporting to business partners. In the next step, these activities will speed up the processing of incominginvoices and streamline the processes for suppliers.

9. Other Important Facts

The Company did not acquire its own shares or interestsThe Company does not have any foreign branchThe Company ensures compliance with all applicable environmental legislationThe Company has no extraordinary obligations in the area of labor relations

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10. The Year 2018 in Figures

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11. Socially Useful Activities

Europ Assistance is a modern company committed to social responsibility. Similarly to our business activities, wefocus on helping people make life easier in various life situations. That is why we support numerous projects that weconsider meaningful and strive to create a positive impact on our community through our activities.

We have provided long-standing support to the children's home “Zemědětí” in Česká Kamenice. This year, thanks to our financial contribution,the home has been able to make certain construction modifications andimprove the facilities for child care workers. Every year, we visit thechildren and help with the maintenance of the home’s large garden.

We greatly appreciate the opportunity for cooperation with the seniorcitizens center Elpida. In addition to our financial support, we alsoattended “Senior on the Phone” workshops and took part in the project“Socks from your grandmother”.

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Financial Section

(Translation of a report originally issued in Czech - see Note 2 to the financial statements.)

INDEPENDENT AUDITOR’S REPORT

To the Shareholders of Europ Assistance s.r.o.:

Opinion

We have audited the accompanying financial statements of Europ Assistance s.r.o. (the Company)prepared in accordance with accounting principles generally accepted in the Czech Republic,which comprise the balance sheet as at 31 December 2018, and the income statement, statementof changes in equity and statement of cash flows for the year then ended, and notes to the financialstatements, including a summary of significant accounting policies and other explanatory information.For details of the Company, see Note 1 to the financial statements.

In our opinion, the accompanying financial statements give a true and fair view of the financial positionof the Company as at 31 December 2018, and of its financial performance and its cash flows for the yearthen ended in accordance with accounting principles generally accepted in the Czech Republic.

Basis for Opinion

We conducted our audit in accordance with the Act on Auditors and Auditing Standards of the Chamberof Auditors of the Czech Republic, which are International Standards on Auditing (ISAs), as amendedby the related application clauses. Our responsibilities under this law and regulation are further describedin the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Act on Auditors and the Code of Ethics adoptedby the Chamber of Auditors of the Czech Republic and we have fulfilled our other ethical responsibilitiesin accordance with these requirements. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion.

Other Information

In compliance with Section 2(b) of the Act on Auditors, the other information comprises the informationincluded in the Annual Report other than the financial statements and auditor’s report thereon.The Statutory Representative is responsible for the other information.

Our opinion on the financial statements does not cover the other information. In connection with our auditof the financial statements, our responsibility is to read the other information and, in doing so, considerwhether the other information is materially inconsistent with the financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated. In addition, we assess whetherthe other information has been prepared, in all material respects, in accordance with applicable lawor regulation, in particular, whether the other information complies with law or regulation in termsof formal requirements and procedure for preparing the other information in the context of materiality,i.e. whether any non-compliance with these requirements could influence judgments made on the basisof the other information.

Based on the procedures performed, to the extent we are able to assess it, we report that:· The other information describing the facts that are also presented in the financial statements is,

in all material respects, consistent with the financial statements; and· The other information is prepared in compliance with applicable law or regulation.

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In addition, our responsibility is to report, based on the knowledge and understanding of the Companyobtained in the audit, on whether the other information contains any material misstatement.Based on the procedures we have performed on the other information obtained, we have not identifiedany material misstatement.

Responsibilities of the Company’s Statutory Representative and Supervisory Board for the FinancialStatements

The Statutory Representative is responsible for the preparation and fair presentation of the financialstatements in accordance with accounting principles generally accepted in the Czech Republicand for such internal control as the Statutory Representative determines is necessary to enablethe preparation of financial statements that are free from material misstatement, whether due to fraudor error.

In preparing the financial statements, the Statutory Representative is responsible for assessingthe Company’s ability to continue as a going concern, disclosing, as applicable, matters related to goingconcern and using the going concern basis of accounting unless the Statutory Representative eitherintends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Supervisory Board is responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole arefree from material misstatement, whether due to fraud or error, and to issue an auditor’s report thatincludes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an auditconducted in accordance with above regulations will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,they could reasonably be expected to influence the economic decisions of users taken on the basis of thesefinancial statements.

As part of an audit in accordance with the above law or regulation, we exercise professional judgmentand maintain professional skepticism throughout the audit. We also:

· Identify and assess the risks of material misstatement of the financial statements, whetherdue to fraud or error, design and perform audit procedures responsive to those risks, and obtainaudit evidence that is sufficient and appropriate to provide a basis for our opinion. The riskof not detecting a material misstatement resulting from fraud is higher than for one resultingfrom error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations,or the override of internal control.

· Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose of expressingan opinion on the effectiveness of the Company’s internal control.

· Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by the Statutory Representative.

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· Conclude on the appropriateness of the Statutory Representative’s use of the going concern basisof accounting and, based on the audit evidence obtained, whether a material uncertainty existsrelated to events or conditions that may cast significant doubt on the Company’s ability to continueas a going concern. If we conclude that a material uncertainty exists, we are required to drawattention in our auditor’s report to the related disclosures in the financial statements or,if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor’s report. However, future events or conditions maycause the Company to cease to continue as a going concern.

· Evaluate the overall presentation, structure and content of the financial statements, includingthe disclosures, and whether the financial statements represent the underlying transactionsand events in a manner that achieves fair presentation.

We communicate with the Supervisory Board regarding, among other matters, the planned scopeand timing of the audit and significant audit findings, including any significant deficiencies in internalcontrol that we identify during our audit.

Ernst & Young Audit, s.r.o.License No. 401

Roman Hauptfleisch, AuditorLicense No. 2009

31 May 2019Prague, Czech Republic

BALANCE SHEET

Current year Prior year2017

Gross Allowances Net Net

TOTAL ASSETS 256,621 (12,775) 243,846 205,427A. STOCK SUBSCRIPTION RECEIVABLE 0 0 0 0

B. FIXED ASSETS 33,240 (12,333) 20,907 11,123

B. I. Intangible fixed assets 24,284 (5,873) 18,411 9,311B. I. 1. Development 0 0 0 0

2. Valuable rights 24,106 (5,873) 18,233 9,2111. Software 24,106 (5,873) 18,233 9,2112. Other valuable rights 0 0 0 0

3. Goodwill 0 0 0 04. Other intangible fixed assets 0 0 0 0

5.Advances granted for intangible fixed assets and intangiblefixed assets in progress 178 0 178 100

1. Advances granted for intangible fixed assets 0 0 0 02. Intangible fixed assets in progress 178 0 178 100

B. II. Tangible fixed assets 8,956 (6,460) 2,496 1,812B. II. 1. Land and structures 0 0 0 0

1. Land 0 0 0 02. Structures 0 0 0 0

2. Movable assets and sets of movable assets 8,205 (6,311) 1,894 1,7463. Gain or loss on revaluation of acquired property 0 0 0 04. Other tangible fixed assets 751 (149) 602 66

1. Perennial crops 0 0 0 02. Livestock 0 0 0 03. Miscellaneous tangible fixed assets 751 (149) 602 66

5.Advances granted for tangible fixed assets and tangible fixedassets in progress 0 0 0 0

1. Advances granted for tangible fixed assets 0 0 0 02. Tangible fixed assets in progress 0 0 0 0

B. III. Long-term investments 0 0 0 0B. III. 1. Interests – controlled or controlling entity 0 0 0 0

2. Loans and borrowings – controlled or controlling entity 0 0 0 03. Interests – significant influence 0 0 0 04. Loans and borrowings - significant influence 0 0 0 05. Other long-term securities and interests 0 0 0 06. Loans and borrowings - other 0 0 0 07. Other long-term investments 0 0 0 0

1. Miscellaneous long-term investments 0 0 0 02. Advances granted for long-term investments 0 0 0 0

C. CURRENT ASSETS 185,686 (442) 185,244 192,140

C. I. Inventories 0 0 0 0C. I. 1. Materials 0 0 0 0

2. Work in progress and semi-finished production 0 0 0 03. Finished products and goods 0 0 0 0

1. Finished products 0 0 0 02. Goods 0 0 0 0

4. Livestock 0 0 0 05. Advances granted for inventories 0 0 0 0

C. II. Receivables 141,351 (442) 140,909 144,967C. II. 1. Long-term receivables 1,310 0 1,310 1,262

1. Trade receivables 0 0 0 02. Receivables – controlled or controlling entity 0 0 0 03. Receivables – significant influence 0 0 0 04. Deferred tax asset 303 0 303 2585. Other receivables 1,007 0 1,007 1,004

5.1. Receivables from partners 0 0 0 05.2. Long-term advances granted 1,007 0 1,007 1,0045.3. Unbilled revenue 0 0 0 05.4. Miscellaneous receivables 0 0 0 0

Europ Assistance s.r.o. as at 31. 12. 2018

Czech Statutory Financial Statement Forms (in thousands of Czech crowns)

The accompanying income statement, cash flow statement, statement of changes in equity and notes are an integral part of the financialstatements.

BALANCE SHEET


Gross Allowances Net Net



C. II. 2. Short-term receivables 140,041 (442) 139,599 143,7051. Trade receivables 119,772 (442) 119,330 123,7022. Receivables – controlled or controlling entity 0 0 0 03. Receivables – significant influence 0 0 0 04. Other receivables 20,269 0 20,269 20,003

4.1. Receivables from partners 0 0 0 04.2. Social security and health insurance 0 0 0 04.3. Due from government - tax receivables 1,724 0 1,724 3,1284.4. Short-term advances granted 2,427 0 2,427 3,5534.5. Unbilled revenue 16,187 0 16,187 13,3344.6. Miscellaneous receivables (69) 0 (69) (12)

C. III. Short-term financial assets 0 0 0 01. Interests - controlled or controlling entity 0 0 0 02. Other short-term financial assets 0 0 0 0

C. IV. Cash 44,335 0 44,335 47,1731. Cash in hand 176 0 176 1322. Cash at bank 44,159 0 44,159 47,041

D. Prepaid expenses and accrued income 37,695 0 37,695 2,164D. 1. Prepaid expenses 1,864 0 1,864 1,447

2. Prepaid expenses (specific-purpose expenses) 0 0 0 03. Accrued income 35,831 0 35,831 717

The accompanying income statement, cash flow statement, statement of changes in equity and notes are an integral part of the financialstatements.

BALANCE SHEET


TOTAL EQUITY & LIABILITIES 243,846 205,427A. EQUITY 73,196 71,746

A. I. Basic capital 3,867 3,867A. I. 1. Registered capital 3,867 3,867

2. Own ownership interests (-) 0 03. Changes in basic capital 0 0

A. II. Share premium and revaluation reserve 44,403 44,403A. II. 1. Share premium 0 0

2. Capital funds 44,403 44,4031. Other capital funds 44,403 44,4032. Gain or loss on revaluation of assets and liabilities (+/-) 0 03. Gain or loss on revaluation upon corporate transformation (+/-) 0 04. Differences arising on corporate transformation (+/-) 0 0

5.Differences arising between balance sheet date andtransformation date (+/-) 0 0

A. III. Reserves from profit 387 387A. III. 1. Other reserves 387 387

2. Statutory and other reserves 0 00 0

A. IV. Profit (loss) brought forward (+/-) 14,190 13,237IV. 1. Retained earnings 14,190 13,237

2. Other profit (loss) brought forward (+/-) 0 0

A. V. Profit (loss) for the year (+/-) 10,349 9,852

A. VI. Approved decision on advances for profit distribution (-) 0 0

B. + C. PROVISIONS AND LIABILITIES 142,295 120,681

B. Provisions 2,215 1,905B. 1. Provision for pensions and similar obligations 0 0

2. Provision for corporate income tax 0 03. Provisions recognized under special legislation 0 04. Other provisions 2,215 1,905

C. Liabilities 140,080 118,776C. I. Long-term liabilities 29,089 23,648

1. Bonds payable 0 01. Convertible bonds 0 02. Other bonds 0 0

2. Amounts owed to credit institutions 0 03. Long-term advances received 29,089 23,6484. Trade payables 0 05. Long-term notes payable 0 06. Liabilities – controlled or controlling entity 0 07. Liabilities – significant influence 0 08. Deferred tax liability 0 09. Other liabilities 0 0

1. Liabilities to partners 0 02. Unbilled deliveries 0 03. Miscellaneous liabilities 0 0

C. II. Current liabilities 110,991 95,1281. Bonds payable 0 0

1. Convertible bonds 0 02. Other bonds 0 0

2. Amounts owed to credit institutions 0 03. Short-term advances received 33,663 31,8874. Trade payables 57,137 32,1985. Short-term notes payable 0 06. Liabilities – controlled or controlling entity 0 07. Liabilities – significant influence 0 08. Other liabilities 20,191 31,043

1. Liabilities to partners 0 13,2002. Short-term borrowings 0 03. Liabilities to employees 6,664 5,9664. Liabilities arising from social security and health insurance 4,089 3,5655. Due to government – taxes and subsidies 1,393 1,2086. Unbilled deliveries 7,898 6,9467. Miscellaneous liabilities 147 158

D. Accruals and deferred income 28,355 13,000D. 1. Accruals 19,568 5,103

2. Deferred income 8,787 7,897



The accompanying income statement, cash flow statement, statement of changes in equity and notes are an integral part of the financial statements.

INCOME STATEMENT


I. Revenue from sale of finished products and services 368,516 288,975

II. Revenue from sale of goods 0 0

A. Production-related consumption 205,036 163,601A.1. Cost of goods sold 0 0A.2. Consumption of material and energy 3,821 5,422A.3. Services 201,215 158,179

B. Change in inventory produced internally (+/-) 0 0

C. Own work capitalized (-) 0 0

D. Personnel expenses 134,386 102,163D.1. Wages and salaries 98,072 74,568D.2. Social security and health insurance costs and other costs 36,314 27,595D.2.1. Social security and health insurance costs 32,393 24,587D.2.2. Other costs 3,921 3,008

E. Value adjustments in respect of operating activities 3,842 2,123E.1. Value adjustments in respect of intangible and tangible fixed assets 3,877 1,982E.1.1. Value adjustments in respect of intangible and tangible fixed assets - permanent 3,877 1,982E.1.2. Value adjustments in respect of intangible and tangible fixed assets - temporary 0 0E.2. Value adjustments in respect of inventory 0 0E.3. Value adjustments in respect of receivables (35) 141

III. Other operating income 249 1,619III.1. Income from sale of fixed assets 0 612III.2. Income from sale of materials 14 22III.3. Miscellaneous operating income 235 985

F. Other operating expenses 11,822 8,645F.1. Net book value of fixed assets sold 0 150F.2. Net book value of materials sold 0 0F.3. Taxes and charges relating to operations 306 240

F.4. Provisions relating to operations and prepaid expenses (specific-purpose expenses) 310 253F.5. Miscellaneous operating expenses 11,206 8,002

* Profit or loss on operating activities (+/-) 13,679 14,062

IV. Income from long-term investments - interests 0 0IV.1. Income from interests in subsidiaries or parents 0 0IV.2. Other income from interests 0 0

G. Cost of interests sold 0 0

V. Income from other long-term investments 0 0V.1. Income from other long-term investments - subsidiaries or parents 0 0V.2. Other income from other long-term investments 0 0

H. Expenses relating to other long-term investments 0 0

VI. Interest receivable and similar income 14 15VI.1. Interest receivable and similar income - subsidiaries or parents 14 15VI.2. Other interest receivable and similar income 0 0

I. Value adjustments and provisions relating to financial activities 0 0

J. Interest payable and similar expenses 0 0J.1. Interest payable and similar expenses - subsidiaries or parents 0 0J.2. Other interest payable and similar expenses 0 0

VII. Other finance income 1,518 1,006

K. Other finance cost 2,290 2,532

* Profit or loss on financial activities (+/-) (758) (1,511)

** Profit or loss before taxation (+/-) 12,921 12,551

Europ Assistance s.r.o. for the year ended 31. 12. 2018


The accompanying balance sheet, cash flow statement, statement of changes in equity and notes are an integral part of the financial statements.

INCOME STATEMENT


Europ Assistance s.r.o. for the year ended 31. 12. 2018


L. Income tax 2,572 2,699L.1. Income tax due 2,616 2,624L.2. Income tax deferred (+/-) (44) 75

** Profit or loss after taxation (+/-) 10,349 9,852

M. Transfer of share of profit or loss to partners (+/-) 0 0

*** Profit or loss for the year (+/-) 10,349 9,852

* Net turnover 370,297 291,615

The accompanying balance sheet, cash flow statement, statement of changes in equity and notes are an integral part of the financial statements.

CASH FLOW STATEMENT

For the years ended 31 December 2018 and 2017


Z. 12,921 12,551

A. 1. 4,417 1,728A. 1. 1. 4,086 2,057A. 1. 2. 35 (105)A. 1. 3. 310 253A. 1. 4. 0 0A. 1. 5. 0 (462)A. 1. 6. (14) (15)A. 1. 7. 0 0

A * 17,338 14,279

A. 2. 10,954 (21,898)A. 2. 1. 0 0A. 2. 2. 4,163 (41,907)A. 2. 3. (37,627) 1,210A. 2. 4. 24,939 5,903A. 2. 5. 19,479 12,896

A ** 28,292 (7,619)

A. 3. 1. 0 0A. 4. 1. (825) (4,795)

A *** 27,467 (12,414)

B. 1. 1. (13,661) (6,274)B. 2. 1. 0 612B. 3. 1. 0 0B. 4. 1. 15 15B. 5. 1. 0 0

B *** (13,646) (5,647)

C. 1. (7,759) 18,279

C. 2. 1. 0 0C. 2. 2. (8,900) (4,400)C. 2. 3. 0 (13,200)

C *** (16,659) 679

F. (2,838) (17,382)P. 47,173 64,555R. 44,335 47,173

Interest expense and interest income

Europ Assistance s.r.o. for the year ended 31. 12. 2018Czech Statutory Financial Statement Forms (in thousands of Czech crowns)

Cash flows from operating activities

Profit or loss on ordinary activities before taxation (+/-)

Adjustments to reconcile profit or loss to net cash provided by or used in operating activitiesDepreciation and amortization of fixed assets and write-off of receivablesChange in allowancesChange in provisionsForeign exchange differences(Gain)/Loss on disposal of fixed assets

Net cash provided by (used in) operating activities

Other non-cash movements (e.g. revaluation at fair value to profit or loss, dividends received)

Net cash from operating activities before taxation, changes in working capital andextraordinary items

Change in non-cash components of working capitalChange in inventoryChange in trade receivablesChange in other receivables and in prepaid expenses and unbilled revenueChange in trade payablesChange in other payables, and in accruals and deferred income

Net cash from operating activities before taxation, interest paid and extraordinary items

Interest paidIncome Tax paid

Dividends received

Net cash provided by (used in) investing activities

Cash flows from financing activities

Change in long-term liabilities, and long-term and short-term loans

Cash flows from investing activities

Purchase of fixed assetsProceeds from sale of fixed assetsLoans grantedInterest received

Effect of other changes in own capital on cash

Net cash provided by (used in) financing activities

Net increase (decrease) in cashCash and cash equivalents at beginning of yearCash and cash equivalents at end of year

Profit shares paidEffect of other changes in equity on cash

The accompanying balance sheet, income statement, statement of changes in equity and notes are an integral part of the financial statements.

Europ Assistance s.r.o.

Czech Statutory Financial Statement Forms as at 31 December 2018

The accompanying balance sheet, income statement, cash flow statement and notes are an integral part of the financialstatements.

Statement of changes in equity (in CZK thousands):

Balance as at31/ 12/ 2016 Increase Decrease Balance as at

31/ 12/ 2017 Increase Decrease Balance as at31/ 12/ 2018

Basic capital 3,867 - - 3,867 - - 3,867

Changes in basic capital - - - - - - -

Other capital funds 44,403 - - 44,403 - - 44,403

Reserve fund 387 - - 387 - - 387

Gain or loss on revaluationof assets - - - - - - -

Profit (loss) broughtforward 11,318 19,519 (17,600) 13,237 9,853 (8,900) 14,190

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FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

1. Description of the Company

Europ Assistance s.r.o. (“the Company” or “Europ Assistance”) is a limited liability company incorporatedon 20 April 1998 under the name Společnost pro správu podílů s.r.o. In 2002, the Company was renamedand has been operating under the name Europ Assistance s.r.o. since that time.

The Company’s registered office is located at Na Pankráci 1658/121, Prague 4, Czech Republicand the business registration number (IČ) is 25287851.

The Company is registered as an:

- advisor in finance, business, economic and organizational activities,- independent loss adjuster,- insurance broker/agent,- production, business and services unlisted in attachments 1 to 3 of the Trades Licensing Act.

The parent company and the majority owner has been Europ Assistance Holding, a joint-stock companybased in France. The minority owner with 25% share is Česká pojišťovna a.s., located at Spálená 75/16,113 04 Prague 1, Czech Republic, business registration number (IČ) 452 72 956.

The ultimate parent company is the insurance company Assicurazioni Generali S.p.A, Italy. Consolidatedfinancial statements prepared in accordance with International Financial Reporting Standards (IFRS)have been prepared by the parent company Europ Assistance Holding SA.

As at 31 December 2018, the Company had only one statutory representative, Ing. Vladimír Fuchs,who was appointed on 31 May 2011 with the effective date 1 June 2011.

Supervisory BoardChair: László KalmárMember: Pavol Pitoňák

Member: Petr BohumskýMember: Roberto Ravagnani

Member: Josef Bernhard Woerner

The Company is divided into the following departments: operating platform, sales, IT, finance and internalorganization. These departments are managed by managers. The Company is headed by its statutoryrepresentative. The Company has no foreign branch.

2. Basis of Presentation of the Financial Statements

The accompanying financial statements were prepared in accordance with the Czech Act on Accountingand the related guidelines as applicable for 2018 and 2017.

Explanation Added for Translation into English

These financial statements are presented on the basis of accounting principles and standards generallyaccepted in the Czech Republic. Certain accounting practices applied by the Company that conformwith generally accepted accounting principles and standards in the Czech Republic may not conformwith generally accepted accounting principles in other countries. These financial statements have been

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prepared in the Czech language and in English. In all matters of interpretation of information, viewsor opinions, the Czech version of the financial statements takes precedence over the English version.

3. Summary of Significant Accounting Policies, Accounting Methods and DeparturesTherefrom

The accounting policies applied by the Company in preparing the 2018 and 2017 financial statementsare as follows:

a) Intangible Fixed Assets

Intangible fixed assets are recorded at their acquisition cost and related expenses.

Intangible fixed assets with a cost exceeding CZK 60 thousand in 2018 and 2017 are amortized over theiruseful economic lives.

Amortization

Amortization is calculated based on the acquisition cost and the estimated useful life of the related asset.The useful economic lives are as follows:

YearsSoftware 3

Telephone Exchange, vGSDCore 6

Miscellaneous intangible fixed assets 4

b) Tangible Fixed Assets

Tangible assets are recorded at their acquisition cost, which consists of purchase price, customs dutiesand other related costs. Purchased tangible fixed assets with a cost exceeding CZK 40 thousand in 2018and 2017 are depreciated over their useful economic lives. The costs of technical improvementsare capitalized. Repairs and maintenance expenses are expensed as incurred.

Depreciation

Depreciation is calculated based on the acquisition cost and the estimated useful life of the related asset.The useful economic lives are as follows:

YearsMachinery and equipment 3 - 4

Vehicles 4

Furniture and fixtures 6

Miscellaneous tangible fixed assets 4

Whenever the carrying amount of an asset exceeds its estimated recoverable amount, an asset is writtendown to its recoverable amount by an allowance.

c) Financial Assets

Short-term financial assets consist of liquid valuables, cash in hand and at bank.

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d) Receivables

Receivables are initially measured at their nominal amount. Both long- and short-term receivables arecarried at their realizable value after allowance for doubtful accounts. Additions to the allowance accountare charged to income. The allowance against receivables is created on grounds of an ageing analysisand an assessment of debtor’s solvency. Bad debts are written off on the basis of their individualassessment.

e) Equity

The basic capital of the Company is stated at the amount recorded in the Commercial Register maintainedin the Municipal Court. Any increase or decrease in the basic capital made pursuant to the decisionof the General Meeting which was not entered in the Commercial Register as at the balance sheet dateis recorded through changes in basic capital. Contributions in excess of basic capital are recordedas share premium. Other capital funds consist of monetary and non-monetary contributions in excessof basic capital, tangible assets donations, etc.

In accordance with the Articles of Association, the Company creates a reserve fund from profit.The Company creates the reserve fund at amount of 5% of profit after tax up to 10% of basic capital.

f) Provisions and Liabilities

The Company creates provisions within the meaning of the Provision Act and provisions for lossesand risks if the related purpose, amount and timing can be reliably estimated and the accrualand matching principles are observed.

Long-term liabilities and current liabilities are carried at their nominal values. Advance payments receivedare distinguished according to their purpose to short-term and long-term advance payments. Receivedadvance payments most often include advance payments received from customers for the paymentthat the Company effects on their behalf at the account of their clients. Received advance paymentsdenominated in foreign currencies are adjusted at year-end to the exchange rates as published bythe Czech National Bank. All FOREX gains/losses are charged or credited, as appropriate, to incomefor the year.

g) Leases

The Company records leased assets by expensing the lease payments and, for finance leases,capitalizing the residual value of the leased assets when the lease contract expires and the purchaseoption is exercised. Lease payments paid in advance are recorded as prepaid expenses and amortizedover the lease term.

h) Foreign Currency Transactions

Assets and liabilities whose acquisition or production costs were denominated in foreign currenciesare translated into Czech crowns at the exchange rate prevailing as at the transaction date.On the balance sheet date monetary items are adjusted to the exchange rates as published by the CzechNational Bank as at 31 December.

Realized and unrealized exchange rate gains and losses were charged or credited, as appropriate,to finance income for the year.

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i) Use of Estimates

The preparation of financial statements requires management to make estimates and assumptionsthat affect the reported amounts of assets and liabilities at the balance sheet date and the reportedamounts of revenues and expenses during the reporting period. The Company management preparedthese estimates and predictions based on all available relevant information. These estimates andassumptions are based on information available as at the date of the financial statements and may differfrom actual results.

j) Recognition of Revenues and Expenses

Revenues and expenses are recognized on an accrual basis, that is, they are recognized in the periodsin which the actual flow of the related goods or services occurs, regardless of when the related monetaryflow arises. Payments received for assistance services are accrued in the period to which they relate.

k) Income Tax

The corporate income tax expense is calculated based on the statutory tax rate and book income beforetaxes, increased or decreased by the appropriate permanent and temporary differences (e.g. non-deductible provisions and allowances, entertainment expenses, differences between book and taxdepreciation, deducting of expenses for research and development etc.).

The deferred tax position reflects the net tax effects of temporary differences between the carryingamounts of assets and liabilities for financial reporting purposes and the amounts used for corporateincome tax purposes, taking into consideration the period of realization.

l) Subsequent Events

The impact of events that occurred between the balance sheet date and the date of the financialstatements preparation is recognized in the financial statements provided these events provide additionalevidence about conditions that existed at the date of the balance sheet.

If material events reflecting the facts occurring after the balance sheet date happened betweenthe balance sheet date and the date of the financial statements preparation the consequences of theseevents are disclosed in the notes to the financial statements but not recognized in the financial statements.

m) Cash Flow Statement

The Company prepared the cash-flow statement using the indirect method. Cash equivalents are short-term, highly liquid assets that are easily and readily convertible to known amounts of cash.

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4. Fixed Assets

a) Intangible Fixed Assets (in CZK thousands)

COST

Openingbalance as at

1/ 1/ 2018Additions Disposals Transfers

Closingbalance as at31/ 12/ 2018

Software 12,138 - - 11,968 24,106

Other intangible fixed assets - - - - -

Intangible fixed assets inprogress 100 12,046 - (11,968) 178

2018 Total 12,238 12,046 - - 24,284

2017 Total 7,746 4,492 - - 12,238

ALLOWANCES AND ACCUMULATED AMORTIZATION


1/ 1/ 2018

Amortizationduring year Disposals


Net bookvalue

Software (2,927) (2,946) - (5,873) 18,233

Other intangible fixed assets - - - - -

Intangible fixed assets inprogress - - - - 178

2018 Total (2,927) (2,946) - (5,873) 18,411

2017 Total (1,594) (1,333) - (2,927) 9,311

As at 31 December 2018 and 2017, the total value of small intangible fixed assets, which are not reflectedin the accompanying balance sheet, was CZK 1,546 thousand and CZK 78 thousand at acquisition cost, respectively.

b) Tangible Fixed Assets (in CZK thousands)

COST


1/ 1/ 2018Additions Disposals Transfers


Movable assets and sets ofmovable assets 6,040 - - 1,005 7,045

Other tangible fixed assets 1,160 - - - 1,160

Miscellaneous tangible fixedassets 140 - - 611 751

Tangible fixed assets inprogress - 1,616 - (1,616) -

2018 Total 7,340 1,616 - - 8,956

2017 Total 8,079 1,782 (2,521) - 7,340

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ALLOWANCES AND ACCUMULATED DEPRECIATION


1/ 1/ 2018

Depreciationduring year

Costof sales

or liquidationDisposals Transfers


AllowancesNet

bookvalue

Movable assetsand sets ofmovable assets (4,294) (857) - - - (5,151) - 1,894

Other tangiblefixed assets (1,160) - - - - (1,160) - -

Miscellaneoustangible fixedassets (74) (75) - - - (149) - 602

2018 Total (5,528) (932) - - - (6,460) - 2,496

2017 Total (7,250) (649) (150) 2,521 - (5,528) - 1,812

The total value of small tangible fixed assets which are not reflected in the accompanying balance sheet wasCZK 1,819 thousand and CZK 2,709 thousand at acquisition cost as at 31 December 2018 and 2017, respectively.

5. Receivables

Allowances against outstanding receivables that are considered doubtful were charged to income based on theirmaturity and collectability analysis in 2018 and 2017, respectively.

As at 31 December 2018 and 2017, receivables overdue for more than 90 days totaled CZK 904 thousandand CZK 866 thousand, respectively.

The Company wrote off irrecoverable receivables of CZK 209 thousand and CZK 75 thousand in 2018 and 2017,respectively.

As at 31 December 2018 and 2017, the Company had long-term receivables of CZK 1,007 thousandand CZK 1,004 thousand, respectively related to long-term advance payments and deposits.

Unbilled revenue represents, in particular, accrued costs and revenues.

Receivables from related parties (see Note 19).

6. Allowances

Allowances reflect a temporary diminution in value of assets (see Note 5).

Changes in the allowance accounts (in CZK thousands):

Allowancesagainst:

Balance as at31/ 12/ 2016 Additions Deductions Balance as at

31/ 12/ 2017 Additions Deductions Balance as at31/ 12/ 2018

Receivables –other 336 477 (336) 477 442 (477) 442

Legal allowances are created in compliance with the Act on Provisions and are tax deductible.

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7. Short-term Financial Assets and Cash

2018 2017Cash on hand 37 9

Cash equivalents 139 123

Cash at banks 44,159 47,041

Total 44,335 47,173

8. Prepaid Expenses and Accrued Income

The most significant item of prepaid expenses includes insurance and license paid in advance which are chargedto income for the year in which they were incurred.

Unbilled revenues include services provided in 2018 which were invoiced in the next accounting period.

9. Equity

Statement of changes in equity (see the Financial Section).

Pursuant to the decision of the partners outside the general meeting dated 20 June 2018, the 2017financial statements as well as the distribution of the 2017 profit in the amount of CZK 9,853 thousandwere approved; the 2017 profit was distributed as follows: the amount of CZK 8,900 thousand was paidas dividends, CZK 953 thousand were kept in retained earnings.

In 2018, the Company paid out dividends for the year 2017 totaling CZK 8,900 thousand alongwith the outstanding dividends for the year 2016 totaling CZK 13,200 thousand. In 2017, the Companypaid a portion of the dividend for 2016 in the amount of CZK 4,400 thousand.

10. Provisions

The movements in the provision accounts were as follows (in CZK thousands):

Provisions Balance as at31/ 12/ 2016 Additions Deductions Balance as at

31/ 12/ 2017 Additions Deductions Balance as at31/ 12/ 2018

Other 1,652 1,905 (1,652) 1,905 2,215 (1,905) 2,215

Other provisions are created for unused vacation and annual bonuses.

11. Long-term Liabilities

As at 31 December 2018 and 2017, the Company records long-term advance paymentsof CZK 29,089 thousand and CZK 23,648 thousand, respectively. These permanent advance paymentswere received to provide medical and technical assistance and are used by the Company to coverexternal costs on behalf and at the account of clients. Any portion of long-term advance paymentsreceived, which is due within one year of the balance sheet date, is classified as short-term advancepayment. Liabilities are not secured by Company property.

Long-term liabilities to related parties (see Note 19).

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12. Current Liabilities

As at 31 December 2018 and 2017, the Company had overdue current payables for more than 30 daystotaling CZK 382 thousand and CZK 168 thousand, respectively.

As at 31 December 2018 and 2017, the Company had liabilities of CZK 4,089 thousandand CZK 3,565 thousand, respectively owing to social security and health insurance premiums.

Unbilled deliveries represent, in particular, accruals for purchase of assistance services and related fees.

Payables to related parties (see Note 19).

13. Accruals and Deferred Income

Accrued liabilities include expenses of 2018 but invoiced in 2019; these are recognized in the periodsin which the actual flow of the related goods or services occurs, regardless of when the related monetaryflow arises. The most significant item represents purchases of assistance services not billed bythe suppliers as at 31 December 2018.

Deferred income includes accrued prepaid remunerations for providing assistance services for a firmlyagreed term. They are recognized in the periods in which the actual flow of the related goods or servicesoccurs, regardless of when the related monetary flow arises.

14. Income Taxes

On the basis of preliminary calculation the Company calculated tax expense as follows(in CZK thousands):

2018 2017Profit before taxes 12,921 12,551

Non-deductible expenses, change in provisions andallowances 8,217 7,114

Difference between book and tax depreciation (2,878) (1,755)

Non-taxable income

Other amounts reducing the tax base (702) (596)

Expenses for research and development (3,373) (3,965)

Gifts value (20) (96)

Current income tax rate 19% 19%

Tax on taxable income 2,691 2,518

Tax relief - -

Tax 2,691 2,518

Adjustment of the tax paid in previous years (75) 106

Current tax expense 2,616 2,624

As at 31 December 2018 and 2017, the Company recorded no amounts in tax arrears.

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The Company quantified deferred taxes as follows (in CZK thousands):

2018 2017

Deferred tax items Deferred taxasset

Deferred taxliability

Deferred taxasset

Deferred taxliability

Difference between net book value of fixedassets for accounting and tax purposes - (942) - (460)

Provisions and allowances 504 - 453 -

Unbilled deliveries 741 - 266 -

Total 1,245 (942) 719 (460)

Net 303 259

15. Leases

As at 31 December 2018, assets which are being used by the Company under lease arrangementsconsist of the following (in CZK thousands):

Description Terms/Conditions Expensein 2018

Expensein 2017

Cost (incl.VAT)

Volvo XC60 Operating lease for 24 months 120 138 1,032

VW Passat - Alltrack Operating lease for 12 months 10 82 772

VW Passat combi - Highline Operating lease for 12 months 12 62 599

VW Passat combi - Alltrack Operating lease for 12 months 23 50 760

VW Passat combi - Highline Operating lease for 24 months 102 39 645

VW Passat combi - Alltrack Operating lease for 24 months 113 34 761

VW Passat combi - Alltrack Operating lease for 36 months 117 - 793

VW Golf combi Operating lease for 36 months 65 - 431


VW Tiguan combi - Comfortline Operating lease for 36 months 68 - 547

BMW X1 Operating lease for 36 months 113 - 740

Volvo XC60 Operating lease for 36 months 38 - 1,551


16. Commitments and Contingencies

The Company had no contingent assets and liabilities, which were recorded off balance sheetas at 31 December 2018 and 2017.

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17. Income

The breakdown of revenues on ordinary activities is as follows (in CZK thousands):

2018 2017Travel assistance 59,923 50,307

Technical assistance 248,450 184,106

Home and family assistance 46,898 44,345

Health assistance 10,681 8,732

Other 2,564 1,485

Total revenues 368,516 288,975

In 2018, the revenues of the Company were concentrated primarily with several main customersin the insurance industry.

The breakdown of revenues on domestic and foreign activities is as follows (in CZK thousands):

2018 2017Domestic 251,749 182,337

Foreign 116,767 106,638

Total revenues 368,516 288,975

18. Personnel and Related Expenses

The breakdown of personnel expenses is as follows (in CZK thousands):

2018 2017

Totalpersonnel

Members ofmanagement,

supervisory andadministrative

bodies

Totalpersonnel

Members ofmanagement,

supervisory andadministrative

bodiesAverage number of employees 201 7 184 5

Wages and salaries 98,072 12,239 74,568 9,287

Social security and health insurance 32,393 3,476 24,587 2,650

Social cost 3,921 133 3,008 114

Total personnel expenses 134,386 15,848 102,163 12,051

The Company managers may use company cars for private purposes. Other than those mentionedabove, management received no other cash or in-kind benefits in 2018 and 2017.

19. Related Party Information

The members of management, supervisory and administrative bodies were granted no advances, earnestmoney, loans, borrowings, guarantees, advances or other benefits in 2018 and 2017 and they do not holdany shares/interests of the Company.

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The Company was party to the following transactions with related parties in 2018 (in CZK thousands):

Counterparty Expense Income Receivable Liability

Europ Assistance Holding 6,477 - - 9,737Česká pojišťovna a.s. 8,610 187,518 16,454 12,590Europ Assistance S.A. 31 64,642 - 30,248Generali Pojišťovna a.s. 223 22,609 11,078 4,012Generali Poisťovňa, a.s. - 17,808 13,047 2,999Europ Assistance Brokerage Sol. 1,507 743 - 279Europ Assistance branches 17,160 4,804 5,073 20

The Company was party to the following transactions with related parties in 2017 (in CZK thousands):

Counterparty Expense Income Receivable Liability

Europ Assistance Holding 4,976 - 946 -

Česká pojišťovna a.s. 8,259 154,421 26,543 8,554

Europ Assistance S.A. - 57,580 11,678 9,133

Generali Pojišťovna a.s. 428 17,453 10,875 4,000

Generali Poisťovňa, a.s. - 16,410 7,743 2,978

Generali CEE Holding B.V. 207 - - -

Europ Assistance branches 11,514 6,790 5,760 25

20. Significant Items of Income Statement

Auditor’s fees paid to Ernst & Young Audit, s.r.o., for the audit of financial statements wereCZK 433 thousand and CZK 433 thousand, respectively in 2018 and 2017.

Consumption in operations (in CZK thousands):

2018 2017Assistance-related services 158,032 124,479

Lease and lease related services 9,091 8,233

Administrative and telecommunication costs 4,577 4,204

Consumption of materials 3,821 5,422

Other 29,515 21,263

Total consumption in operations 205,036 163,601

Other operating expenses comprise, in particular, settlement of value added tax deduction, insuranceand gifts. Other operating revenues consist of clearing of surpluses at accounts of advance paymentsfor external costs.

Finance cost relates to bank charges and foreign exchange losses. Finance income relates, in particular,to foreign exchange gains.

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21. Subsequent Events

There were no significant events, which have occurred subsequent to the year-end, which would havea material impact on the financial statements for the year ended 31 December 2018.

22. Statement of Changes in Equity (see Note 9)

Prepared on: Signature of entity’sstatutory body:

Person responsible foraccounting (name, signature):

Person responsible for financial statements(name, signature):

31 May 2019 Ing. Vladimír Fuchs Ing. Lenka Sedláková Ing. Lenka Sedláková

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RELATED PARTY REPORT FOR 2018

Europ Assistance s.r.o., registered in the Commercial Register maintained with the Municipal Court in Prague,Section C, Insert No. 87094 on 20 April 1998, a limited liability company, business registration number(IČ) 252 87 851, with its registered seat located at Prague 4, Na Pankráci 1658/121, zip code140 00, (hereinafter the “Company”), is obliged to prepare a report on relations for 2018 pursuantto Section 82 of Act No. 90/2012 Coll., on Commercial Companies and Cooperatives (the BusinessCorporations Act), as amended.

The Company’s majority owner is Europ Assistance Holding, a joint-stock company with its registered officelocated at Paris, 7 boulevard Haussman, zip code 75009 Paris, France, the minority owner is Česká pojišťovnaa.s., business registration number (IČ): 452 72 956, with its registered seat located at Prague 1, Spálená 75/16,zip code 113 04, Czech Republic. The ultimate parent company is Assicurazioni Generali S.p.A., Italy,which is the ultimate controlling person (hereinafter the “Generali Group”). Europ Assistance s.r.o. providestechnical, travel, home & household and health assistance services to the Generali Group. The Companyis controlled via voting rights of both partners.

The related party report includes contracts that have been concluded in the last accounting period betweenrelated parties, other legal acts that have been taken in the interest of these persons and all other measureswhich have been taken or carried out by the controlled person in the interest or at the instigation of suchpersons. In addition, effective agreements have been included that were concluded in previous periods,on the basis of which the Company provided performance to or was provided performance from related partiesin the current period.

An Overview of Agreements between the Company and the Controlling Person and Persons Controlledby the Same Controlling Entity

In the 2018 accounting period, the Company had the following contracts and agreements concludedwith related parties:

1. Europ Assistance Holding s.a. with the registered office at 2 rue Pillet Will, 75009 Paris, France:

- Trademark license agreement- Service agreement- Software license agreement- Agreement for the provision of services

2. Europ Assistance Brokerage Solutions SAS with the registered office at 2 rue Pillet Will, 75009 Paris,France:

- Agreement for the provision of services

3. Generali Pojišťovna a.s. with the registered office at Bělehradská 299/132, 120 00 Prague 2:

- Contract for the provision of assistance services for motor insurance- Contract for the provision of assistance services for travel insurance (including amendment)- Contract for the assistance service provision (including amendment)- Contract for the provision of assistance services for Accident Insurance, Allegro Insurance, Dolce

Vita Insurance, Benefit Insurance and Profit Invest Insurance- Mandatory reinsurance contracts- Insurance contracts- Contract for provision of call recordings

35


4. Česká pojišťovna a.s. with the registered office at Na Pankráci 121, 140 00 Prague 4:

- Framework contract for cost sharing (including amendment)- Contract for cooperation in medical expenses insurance (including amendment)- Contract for renting non-residential premises for business purposes (including amendment)- KPMG Helpline access agreement- Contract for cooperation in travel assistance services- Service contract in the area of customer recruitment- Contract for the provision of assistance services to PMV and carrier liability insurance- Contract for the provision of assistance services- Contract for cooperation in assistance service provision (including amendment)- Service contract for insurance of MY ESCORT assistance services- Group insurance contract no. 101R01406 (including execution contract)- Mandatory reinsurance contracts- Insurance contracts

5. Generali Poisťovňa a.s. with the registered office at Lamačská cesta 3/A, 841 04 Bratislava, Slovakia:

- Contract for cooperation in car-assistance insurance services in travel insurance- Framework agreement on outsourcing of protection of personal data- Individual service contract for insurance of assistance services in travel insurance- Framework agreement on insurance of assistance services- Cooperation agreement (damage management)- Service contract for insurance of home assistance services to VUB credit cards- Contract for the provision of assistance services for accident and life insurance products- Contract for the provision of assistance services for funeral insurance- Cooperation agreement – LTCI- Contract for cooperation no. 203S03/1304 in the provision of assistance services pertaining to non-

self-sufficiency insurance- Contact center service agreement- Mandatory reinsurance contracts- Cooperation agreement on Home Assistance assistance services (DOMino) (including amendment)

6. Europ Assistance S.A. (trading as Europ Assistance S.A. Irish Branch) with the registered officeat 7 boulevard Haussman, 75009 Paris, France:

- Distributor Services Agreement

Other intercompany services provided in the 2018 accounting period:

Consideration for provided services relating to the use of a clearing center from Europ Assistance HoldingConsideration for provided services relating to insurance from Europ Assistance HoldingConsideration for provided services relating to the register of insurance policies from Europ Assistance HoldingConsideration between separate branches for services provided abroadConsideration to separate branches for services provided locallyConsideration for assistance services provided by Europ Assistance France

All the above contracts and agreements were made on an arm’s-length basis.

All supplies under the above contracts and agreements and under the contracts and agreements concludedin the previous periods, disclosed in the Reports on Relations for previous periods and continuing in 2018,were made or received under standard conditions; the Company suffered no loss or detriment as a resultof these contracts or agreements and they did not result in any special advantages or disadvantages or riskexposures.

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The Company participates in joint intercompany projects and policies within the Generali Group. The Companysuffered no loss or detriment as a result of its participation in these activities.

In 2018, the Company did not adopt or implement any measures at the initiative or in the interest of the relatedparties or other legal acts relating to assets exceeding 10% of the Company’s equity as determinedfrom the last financial statements.

The Company’s statutory body declares that this Report on Relations was prepared with due careand all information disclosed herein is sufficient, correct, accurate and complete. In compliancewith its statutory obligations, the Company will publish an Annual Report that will include as an inseparablepart this Report on Relations.

In Prague, on 29 March 2019

Ing. Vladimír FuchsStatutory Representative

annual report europ assistance s.r.o....6 annual report of europ assistance s.r.o. for 2018 4....

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