FINANCIAL STATFMENTS

FOR THEYEAR ENDED 32- DECEMBER 204Q

--DM SECURITIES LIMITED

FORJHE YEAR ENDED 3lST DECEMBER 201Q

Con tents Page

FOR THE YEAR ENDED 31ST DECEMBER 2010

Directors' report

Independent Auditor's report

Balance sheet

Statement of comprehensive income

Statement of changes in equity

Statement of cash flow

~ o t e s to financial statements

SERIES D EURO-DM SF- UMITED

Rle Dlrectors submit thelr report and the audited financial statements for the year ended 31st December 2010.

Sere 0 Euro-DM Securltles Umlted (the "Company") was incorporated In Jersey, Channel Islands, on 7th March 1986,

The Company holds a folty year Schuldscheln Issued by the State of Baden-WUrttemburg, Germany. The purchase of the Schuldscheln has been flnanced from the net proceeds of the Issue of Zero-Coupon Deutsche Mark Bearer Bonds and the sale of a portlon of the Interest receivable under the Schuldscheln.

RESULTS

The results for the year are shown in the Statement of Comprehensive Income on page 7.

The DireCtW do not recommend the payment of a dlvldend In respect of the year (2009 NIL).

OF DIRECTORS RESPONSTBIkllES

The Directors are responslMe for preparing the flnancial statements In accordance with appllcable law and Internalonal Financial Reporting Standards ("IFRSh).

Companles (Jersey) Law 1991 requlres the directors to prepare flnanclal statements for each flnanclal year, whlch g k a true and falr vlew of the state of affilrs of the company and the profit and loss for that year.

In preparing those tlnandal statements Me Directors should:

* select suitable accountlng pollcles and then apply them conslstentl)'; * make judgements and estimates that are reasonable and prudent; * state whether appllcable accountlng standards have been followed, subject to any materlal departores

dlsdosed and explained In the flnanclal statements; and * prepare the financial statements on a golng concern bask unless It Is inappropriate to presume that the

Company will mt lnue In buslness.

The Directors conflm they have complled wlth all the abow requlrwnenk in preparlng the Rnanclal statements.

The Directors are respond& for keeping proper accountlng recards, whim dlsclose wlth reasonable accuracy at any time the financial posltlom of the company and to enable them to ensure that the flnanclal statements comply with the Companies (Jersey) Law 1991. They have general responslbilky for Laklng such steps as are reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and other Irregularities.

So far as the Directors are aware, there is no relevant audlt Informatlon of whlch the Company's auditors are unaware, and each Mrector has taken all the steps that he or she ought to have taken as a Director In order to make himself or herself aware d any relevant audlt information and to establish that the Company's auditors are aware d that lnformatlon.

STATEMENT OF PERSONS RESPONSIBLE WITHIN THE ISSUER Wl#l regard to Regulation 2Wi109/EC of the European Union (the "EU Transparency Dlrectlve"), the Dlrectors of the Company conflrm b the best of thelr knowledge that the Flnanclal Statements for the year end give a true and falr vlew of the assetr;, llabllltles, flnanclal position and proffi and loss of the Company as required by the appllcable accountlng standards. The Report of the Dlrectors gives a falr revlew of the development of the Company's buslness, financial positlon and the Important events that have occurred durlng the firsandal year and thelr Impact on the AnarPcial Statements. The Prfncipal rkks and uncertainties faced by the Company are disclosed In the notes of these flnancial statements.

Page l

The ClrectDI of the Ccmpany who swd dwlna the w a n d subsquently wezeasMlows:

R M Rlchards ( r e s l w 3lslluly 2008) SPHaVey I P Le Maistre D E Smith (I- 24th A W t &LO)

smmAw C l q d t T58 (lersey) Manegementumlted acmi as seuemy thwghwt the year. - 11- 12 €@an&, PO Bw 63, St M l e r k'w chmnd Islands E4 WH - Commvmank AG Wnzer LandSkaEe 151, 60327 ~mkfmt am Maln Fnm -ny - EE5 T r W IIxematlOrd Urmted Q u m s w q , H u m H lproYeSM S t * RrseV Channel IsbrdS 3f 1 lES - Prlcewaterhwse toopen a U P acted tts audlbjrsdumg thew end hsve mpeWd their wUlllrgMs to continue In a i h .

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SERIES D EURO-DM SECURITIES LlBlITED

Report on the financial statements We have audited the accompanying financial statements of Series D Euro-DM Securities Limited (the "Companyn) which comprise the balance sheet as of 31 December 2010 and the statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended and a summary of significant accounting policies and other explanatory information.

Directors' responsibility for the financial statements The directors are responsible for the preparation of financial statements that give a true and fair view in accordance with International Financial Reporting Standards and with the requirements of Jersey law. The directors are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the tinancia1 statements. The procedures selected depend on the auditors' judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion, the financial statements give a true and fair view of the financial position of the Company as of 31 December 2010 and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards and have been properly prepared in accordance with the requirements of the Companies (Jersey) Law 1991.

Report on other legal and regulatory requirements We read the other information contained in the Annual Report and consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements. The other information comprises of only the directors' report.

In our opinion the information given in the directors' report is consistent with the financial statements.

This report, including the opinion, has been prepared for and only for the Company's members as a body in accordance with Article 113A of the Companies (Jersey) Law 1991 and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

-%-%-- Michael Bme For and on behalf of PricewaterhouseCoopers CI LLP Chartered Accountants and Recognized Auditor Jersey, Channel Islands 18 November 2011

D EURO-DM SECURITIES U M m

MLAwEwm

( E m e m k Euro '0001 unless othetwtrs stated)

mMUtrWtm61CP Held to m w t y Rnandal assets !+spay expenses

Cunentamb ReCeIvable horn related paty

Capltll and rastl~(rp (.tMbutab(e tothempany's q u l y halden) Ordimly rharo cnpltal 6 5 Accumrrbted I r n ~ (194)

Cumnt Ilablkitla T M payat& and aarued W n s e s

The notes on pages lorn 17 fm ?m i w m l part dtheeflnancbl statemerts

Secretatla1 fee ACCOUntaW fe Audt lea mpt ornpan~ fee

~m-tkat i i charge Repard rxpenB

NET 0hUII(LOSS) FOR E A R

The M s on pages 10 to 17 form a lntegrsl part dthcse finenclal statemmh

Sham AccurnulaW Total -*I LQsW mu+u

Net loss fm the year Wributable @a g)uW - 2 2 holdus

bknw at 31 t)ecednber 2010

Sham ArmmukW T d l CaplIaI LQwm LquW

~bsrifwtkyaaraMbutabktoequlty - (21 (2) holders s.ramm at a 1 DeCaMh 2009 5 II%l I1P1)

¶ATEMEM OF

31ST DICE-

(Erpreroed In Euro '000s unless othmiso -)

Net ask wneratrcl horn operating adMt lo l

w incream I [ d m = ) h cad^ and ClOl, eqJwm

Caah and a h equiualsnts at beplnlng Jym#

Canbend tach aqulvaknts st and dthe year

~ C O N C l u h l T O N OF -RE TAX TO CASJMD I N OPERKDQUS

rYolm - 2010 2009

L=!2e&etax I (21

Adjustrnerds for:

Inberest lm at e W v e lrrerea rate 3 (25,2J4) (23,692)

~ s n ~ t l s a c m d d ~ ~ ~ u n t on barer w s r & d w lnhrea ram !6 Z,i99 23,681

Chsnpes In W n g rapital:

lncreess In Wwtletmm relaW party

lncrease11-1 Mde payatle and armal eqenres

Wreant In prepaid expansa

?ha notes m pages l o m 17 lam an Inb?gral part d M e s fnmUal statements

D EURO-DM SEW-

THC FINANCIAL STITEMlNTS

MRTHP VEAR P - The principal $ccountlng p ~ l ~ i e s aD@d bl the prepar-n a1 these Rna& natemeffS are set out MMV. Thesa pdlcks have been applW mnslstmtly to dl pBlodS p m w t d urdes othenhe stdkd.

As at 31 December 2010, h the Mrscmrs' oplnion tk Company Is stlU qsldaed to ta a odno mnm as the Cornpan Is w e to meet its IlaMUles as they fdl due fn the next 12 rnW and In aaordance with w urdertakhg dmd 2nd luty 1986. Cornmenbank AG as prometers pl the issua d ZM, C o w h u l r k Mark beam1 bonds as m t s d In ~ t e 5, hwe a g d to r e l m h th tomwcv rw aU s ~ p u r s p incurred. The expenses wd the care4pnUing reimburserent are shwm In the 5tatmXnt d Cwnpnhcnslve Income

1d.l mail ef pep,&," fhcsc flnaKbl &bments have been prepand unjw tha hi~torlel cost aMvCntbn and In #tmdMar Hntl mkmatlard F~nanciel ~epomng standards (IFRS) as acbpted by tha mwn UNm, Iswed by lnternatbnal k m M g Shndards bard (ma) end mmms lnwd by the rlrtarnatlonal Hnndal RepOnlng CnterpataUca Cmmlltea (IFRIC).

lte Canpany has acgulnd a SchlllMwln isPusl by the Sii-e at Baden-WLirttwnburp, Germany from Cornmenbank f f i mrded Me proceeds& the Zen, colpon Mark bearer bonds. The bonds BE issued with 8 rnaturfty date w ~ p e n d l n g m tb m n t date an the Schuldscheln lam.

The Company m has, nw wrll h, any dher slgnlflmt as& a I ~ l k i w and hss awenanted mt b entar into any other In awKgtion with the Schuldrcheln.

P shauld be Mted that the tnmr a( l s a r d W heu&d-e Wrk tearer bads and camln d mp aweenmu cortaln p r a v k m that II ehsnw mx made hfae Ule final redempllm date of tha Sduldscheln fhm~ Ule calculstlon of me amOun& due k on Ihe b a l set out h such term&

ThUC MancbI stahments have been prepared keeplnp !+I vlm thet tha transaidom mentioned In the pdulcus pamgraPb am nat ~ a r a b * . Tdd l n m e arlslng fm the SchuldWmM snd bXal eqense5 h e u d on the n m c l I l a b l k ( m l u d m ~ the expen= pe-kdnlng m Rdwnptlrn d such liaBllb;es) are rempnlsed In the l n w m a t d m a t dining the tsmr of the Khuldschdn and D e W Mark bssrv bonds mpedlvdy so as to pr- a mnstant rate d return WET their term.

The pmpm- n m a s t a t a n t s In mtmnlty wllh IFRS requlrer the use d certaln clmcal acaxlntlno d m a t e s It ala reaufres management nt to slmlss lud~Ml& ths !JPXSS~ Of applylw WE C~ompaWs 8cCMUW Wclen T k aass ln&w a hQkr dege3 d juc$cma ar cancbdty, or areas Hmere asmpHms and estimates w ggnmnt to t h e m m l stmm, are dlsdosed In m(a 1.2.

a) Stsndrrdr and amendm& to ex-btlng staadardrdktlrs 1 lanuuy 20x0

Then have been M new stMdards w a m e n d m to extstlllg standalds whlch are W v e 1 hnuBry 2010 and awUcable to b m p s n y .

WE ula~~s~inrlx wa lb~l Pa6R;OUIe w~ PI vaw IQ w w w 841 4 sw w w ~ 1 1 0 ysm Pue srnyul qm mews u.d uo ~ $ I W W se u(uauMpf sq &I pasn AuPdruo;) a y l ,splaq ~ u ~ w l p n ulqmmS W P Wll W mo(16noJUl W W PJXfGim SOM W Irua)ulenlpayl WJ W I *lDyla m w l ~ s a w 6wsn paelnw UE spuw am YW aymruo pue 4x~41"11~ pm wwwe ecll

PI0 WR~UOOXI XR O ~ u O Q Q ) W p l e P PpalqBKr) U WUIR 93plM P '6002 BqW Ul par*! Wsly sQM 6 SM1

WTES TO THE FI-ST*TEMeHTs(EPBtklUQd1

1.3 FlllanSlel Rid IlaWlltkd held at.moItrrsd c a t

H e l d - ~ ~ ~ Investme& ate nmdatvative flMndal asst% *UI flM or detarrninaYe payments and fixed mBttmes tha tlm mnapement has the p M v e intenlion and aMW to hold to W t y . he Compsny has designw its Investment In the Schtldsct,ein as held-tc-matulllY Innshnenk, as the Conwny has the posltlre intaUo1 and aMl t to hdd Me hwelment in the SdxlkkMn 03 Its W t y . nnandd ,i&lties a& when mpn/ hasn wnaararai &@on tobcrcvacash orother Rnanaal ~spUrtoanother entity,

The DNtsche MLITk bearer bonds Issued by the Campanl are deslpnated a6 R M n d a i Uabltles carded at amortlsed cost.

1.3.2 Reaqnltlon and msa~l runent IAS 39, Rnandsl Inslrurnents: RempnMm and Measurement -bas W - b m a M l Y Rnanclai arscb and RnancU Iiiblllths at amomsed wst to be maasved on inlt i l mo@won at far wlua plus hnsaetlon costs that a n directly mibutable to Me acqulMan or lswe ot the flnanclnl asset. The Investment and financial Ilabllitks d the Company are Initially rscadcd at orat.

I-bWRr, W& has no M a l effect on the cwrylng mlue d imrestment or HE flnandal liabiliw as the m a n a m t estlrnates ttw the cast c4 me flnanclal assets Ilnamlal ILMHles apprwlmated to thalr h l r values at the tlm ofme InltY remgnltlon.

23.3 aaacognitlonMlllunciJ -and nmndsl Wlitfn FiMndal araE are ckemmlscd when t k M f t s to r d u e caL Ravs lrcfn ifieshnenta him exdred OT the company IIS trmdened S&~MWIY all r&ad mrn ctanrersh~p.

L3.4 Falr value asbmatlon The falr value d fl~ncbl assets and llabllges that a n not traded In ar Mtive market ( fa examde, owr-tb- wunter darlvathvs) k deamnlnal by udng Mluatlon ~ n l q u e s . Ths Frnd vns a wii&d mmods and make9 assumnm that we based on market C O ~ W a x l S f l ~ at esch balance sh#t W W c n tsimi~ues used lndvde the uss ol cwnperable ncent am's l e m ~ s p t i m s , rafennr to ottw ~notrumnts'that am rubstanually Uw same, dlmuxed cach flow analyas, W l m pricing W s and LWRY vdwthm techniques cunmonty used by market partidpaMs nabira t h ~ msdmum usad markst IW and rely1110 as We as an anriwpecik inpm. 5ee nUe 3 iaM n d 5 for the h k valw dmzUcm.

1,4 Qh and a s h aquimlmntt Cash end cash quivalents Indudes ;dsh In hand, deposits Wd at a l l with bWS, CWU' shwt-term hiehty I l W inwsmmts wth Q l g M matuntkr af three mM-6 or kss and bark o w k d b .

1.5.1 Fuactiond and -&&on cutranq TIM C m n v has adwted the E m (TUR7 as Its ohsemetton and functionel m n w as Me CornPanVs @maw ahlily Is to l n k t in Uao de*mlnated sa&tks. The Canpany lles no exposure to umer&m its InvePbnent and only murlmal exporun to h n d h r D n ~ (LCBP) and U W StMes Ddbr (W) m its payable

Tranogtlons dminated In cwnclea other than EU3 have been translated to BR at the e x h a w rate Nlh9 at the & olthe m e d l o n . Mmetary lums m the balance sheet W km banslatel to EUR a the sKchanpe rab! rul~ne at thc war end. Fcnlpn anem lgns and bses on sxh b a ~ ~ and translam m rawnlscd

1.6 Income Ime, which Clcludes Interest i m and dismunt on We SdxlMWn, Is recognlrrd In ttwt Statemerit of Canpduxiue Inmme uslrq me alf&ve Interest rah, memod over the tem d tha Schuldscheln.

1,7hIl&ld0Achatg0 Dluounton DeuUche Merk bearer bond8 is amom& th- the Scaament dCmpreherslve Incane overtha We uf the tc4al liibilW using the effecthe hmert rate method

Costs necesserlly Ina*Ted in &bn to the Ism at the aRltsche Mark beers bonds are daaified as trwsatlon costs. These kanscllm costs are slBrewenliv m & e d mmu(lh the Stakment of Corn~reherrsfve Income uslrd~ W €ffeUlve Interest rate mahod over'the ik ol the tWatedllabUity. Any unamortisad tmnsaclKln w a s ar8 presenle3 by VIay of nem'ng from the r e l W llablllty m M c h iJ?q peRdn.

NOTES TO THE

rn me v m - M

L9 Oilbsniw financhl InlSrumentr financial asws and Uabllltb am offsat and the n u amount repwted h the ManCa h t when there Is a leqatly enforceable dght b offbat the m l s e d amounts and then Is an lntentbn m s d t h m a net basls, or resHse the asret and settle the IlaYYty srmhtanrmshl,

1.10 AdrnlWtntton acpmssr Tha Company hao enpsOed thc wkeP of E R Trvstea rntemational Urnlbld to p i & ahlflstrauvi xrvlm f a a flxed fee of $10,000 per a m and a f~ of $3,000 far bxhsping and accamtlnp senrlces plus dlstummcnts. Totd -rial and accounting f e s lor the year amounted m €9,000 (2009. @,OW). ,

1.11 Band ndarnp(l#l wrpwar Acmrdlng to the twns of W m n t UIC dimerencs b e h m tfM lntenrt INtalmab d w b l e rn the SchuldWn and Lhe redamptbn MIX of the rdevant Mark k r a W wlll bt Lnilised hr mwnent d Cest~ pcmrdq m redemption of the Dcutscht Mark bearer W s kmrdealy, bond redanm e i p e ~ e s am recorded d the UIM when Ule bcrrtr are WwW redeemed.

1.12 sham Opftrl O r d l w shares are das~Red as equity.

A business segmslt b a g r w of assets Md operamsengapxi In pnrvldlnp wdURF a. servb UYIt a 4 wb~ect m riob and f*uns thatare dfkmnt fmm Umse dotter bugnass sepnuxs. A mqwhlcal segnent is e w g d In mldlnp products a smkes w M a puwcular awmk c n v M m t that an subpct to raks and tetums that are Maw from Wse ol writs opsratlw In cthu emtmtcenvlmfIment0

The Urecbxs an- that the enw has onh/ one geogqXlical segmnt (Germany) and one h l m s Kqment ( n u e m kl S c m brds) and t h e d m k mt ruplred to produce addltlonal se?ner~I dalcaure

The Company's aahrltles ewpma it lo a varldy d Rmncial rbkx d l t rkk, munbu-pnrtv dsk, market rlsk and llquldlty riok as mdalncd W w .

~ ) ~ ~ c e n k a a d ~ n t n r e s t n ~ t w ~ me overall p351Pn and thenlm dsk Is povemed by tam^ of the detemned ban do~ument unda the Shu16smdn, and k matrhed and funded by zem muwn De& Mark kbw b o ~ I s . llw Interra rate on Uw Sd*ddschdn Is fixed and therenore Interest rate rtsk Is mlnmel.

The Campaws pes&&m and (vrtlonal raumnp cumney a the bn, ad Mere !a no exchange Ige risk on l m slrretk DM wasConvsted M the Em In 2032 a a Rxed m o t 1.95583. lhm Is sane I i ~ n i M expmue on ewe^^ charged In %eti~nn d US curmc~es, h o w r thsc wemm a t fully reimkurseci bl the mmmlllng company, Comrnerzbank AG.

~k~ornpsriy iar no( pmvlded a sensltldty aMly&, ~ i v ~ that b ~ h I~IWW rate rldtand currency risk aretrrty hcdued. Therefwe In theaplnlm ofthe DiMors, ro ~ M U v l t y ara@ls is rwured b be dsclcaed.

D €ma-- - EQj3 THE YEAR WWJ 3lsT DECEMBER 2014

2-

Zl F lnada l rik hUw~ (conthud)

b) Credit W a n d cwnta partrrbk W t rbk Is th risk that Ihc coulxerparties wlU be unabb to psi amouras In full when d m The Ccmpsny's sl@ Invastmat hddlng k tha Schulbheln (as &abed In nole 31, wkh an actual balana, oulstand~ng of € 417.801 ss at 31 Oeeunber 2010 (2W9: B 391.6m). The Company has conmnted not to Blter Into any othv bamcilara except in ccrmectlm to tha Schuklschel~ An I W m n t reWw was carried out withln the krslnets In of the Schuldzcheln and based on such directors are 07 the W pat no Impahwant provgUHl Is required, as ~~ Mav.

'h hchuldsd~ln inwsbncnt continues b be w m e n t baclced and the Iwn orblnates fmm an EU member Land Beben-WOmemtma WW7 as a stab Is a m m the most powerom mtes h m a n y and IS om of

ttl wealWest regions In BJropl LBW Is on d tha sixteen stshs whlch a n partly soverrlpn mnstiiuml Statef of tk Federn1 Reprmi d Gcrmany.

LBW k a b y hre twkk In Undesbank BadebW-berg ( " L O W who sre or hlgh systemk Impi taxam the Federa Replblk d Famany. LBBW vrlll contlw b &w exwaordlnrsv h c ! d s u m fmn LBW lf needed.

The only other as& SUM to credit rlok Is the ncdvabk Ra related party, Commenbank W Is the ultimata canbdllw party d thaCompany. Wven that C c m n a n k AG, is a we1 regulated bank wUh a cndk reth of A- i UE awtk rlsk of the d v n M from re[ated party I8 aemd h, be mln ld .

C) UquldNv M k W l d W rkk is the rirk that thc canpaw Is unable b meet tho payment obHgeblons svl~ieted wlth its flnancY liiutlcs whcn they fa dm.

Tim canpanycurrdy has m i d d exposun to Vqvldlly ddr as Rs obllOallons h, mast U Ilabi~ltlu) are offset by Um Inveslmm W in aczmdmx ~ t h the termsol Um ban weemmt. There h been nodetauas a beaches to date, In Pdstbn bflmrrial obl(pdbm dthe ampay.

'Ihe matudty of Ihe Cornpanfs LIabllMes a-e ghrur In tha tab!e below.

L w than 1 y a u Over S w n

Eum' 0OUs 1 - 5 W@n E m ' 000s Trade payabk and amled WNeS 12

A s a t 3 i ~ k ~

LEU than 1 mar O v r ~ v s s n

Bum' OODs 1 - 5 yean ~ O Q Q I Trade payable and --P== 12

2 2 Cmp4ml rlsk mslugemsnt AS 6 3 1 b m b a 2010, tk Companyhas an ordinaly sharecapltd M e 5,000 (209: E s,Od0). TheCmwny's maln transaction, xquluon of SchMsdwln was funded thDvgh Issue of Deutsh Hark bearer h d s as clesmbed In ncte 5 to the Unandal sMements.

w LlmRcd rsroursr Thsc is m limitel nawrse h place, as the f l ~ a K Y asm are rat seaaed on iiriY n y s p assets cl U'e Issuer but are paranteed by the iswer Im repayment.

This reptesenk an unssted Investment tn a Sdwldscheln kaud by the Stace of Boden-Wuntemburg on 8 &dl 1%. The SchulrMheln, which har a be value d022,M1,499, was purchased st a cost of &307,641,326.

&hvwn 8 ApY 1986 and 7 Aprll 1996, the Schuldseheln Ws lntetert at a rate of 6.09 96 pa. due and payabk, a m ~ l l v , Subsequentb. k bears interest In equal hstalmcnts dQ64.727350 due on 8 Aorll2006 and 2016 and alii,oGj,am d i m 0 ~ ~ 1 1 2011 and 2026, Ihe principal amount of ttm ~chutdrme~n IS &on a Aprll io26.

TMs investment 1s r m d e d ~nnwly'at cost and 1s s u b m y madsurd a amortlsed cost whib IS detennlned 8f$r taklng lnto a c c m interest y W , CUamnt aclmatlsed and receipt3 d Interest InWmenls as they koma due.

The 5chuldwhekr 15 used to provide scurUy fw the DRlLKhe beam W s dewled In nee 5.

T k carrying amourt d the lnvesnent Is as follows: aman

Amomdmstatbcglnnlnadtheyear 394617 358,925 lnb -ebt ime durlng the year at e W h e lmsart rate ZS,214 23,692

AmgmSdd tost at the end dthe war 417,131 =J&Us,

Tk eRectlvs rate of tha khuldddn Is 6.42% p.a. TIN lair d u e c f h Sd'lukls%h presertd in me BaQnm S k e t Is estimated to be 653,448,607 as et 31 CecembaZOiO (2009: €469,063,452).

NOTES TO THE nNANCUL mAT6MENTS t ~ n t l n y e g l

2

lhls r e p m t s adram payments me& In r e p 3 3 cf nus& and P u i l s M n k tccs and Is amort id thmugh the Incane Etatement on a urabht llne bask over the Ilk of the Sdruldschelh

Carqing mst at thc kqlnnlng Dl the year AmoltIsed dwng the yenr

CarrylngmStattheeMDltheyew

As mphlned In mate 3 to Unx ilnancbl statrmenb, me Company issued 2WO ~ 0 ~ 8 1 band5 and sdd Its rights to Wve lnbrcn due on the SchuldscMn dmng tk perlad 0 April 1986 to 7 AprP 1996 to finance the plrchase of Ule Sbuldxheln. Them Ilabilltii are rm+ded in UE finadal statenents at thdr a W x d cKX whldr Is detefrrdned slter Wng into am~unt dlsmunt ad bansaabn cost amottlsatkm and P W W t ol interest iffitalmenB t o s e the llaWlly sridrq on sale d rim to O a Lmaest on the S c m n .

The bands are fully Sdared m theSchuMeln dersiled in note 3.

Thcca@rg value h as f d h :

A w l & cmt at the teglnnlng of the year

AmMlratbn o f d l n t adfedtie htaesrcate 19,lW 23,681

Amortld mPt at thE cnd Dl the year A&&?& The erfedve I n t e a rate of thz m e t m M bearer bxds Is 6.41% OA.

The mWctWl Value at Ula matlnity of the m c i m Mark beater M k € 8ll2m (2ObP: E Bll.2rn).

The fat v e h of h Deusbhe Mark Bsarer b d s presented in the WBnCQ Sheat Is &mak!d to ba 8553,448,607 as at 31 Oetember 2010 (2009: 6489,069,45Z).

Issued and Mly paid 3309 sham d Ll eXh

Converhd tO € at the exchange I-& drip at the dam mwhMtheDMceasdtobekgaltenda. e-

me Is& share c a p l ~ IS hdd In a nommlnee capxlty by Lb@ TSB ( k m ~ ) Services Umlted and Lk@a T5B (h-sey) W n a m Urnlted.

ha lmm- mrnolllnp paw d tha'comwnv 13 uw TSB ~fkharn Trust Company ud (famer~y knorm as HIW Samuel Mhm Trust Comwny LirnW), as trustee d a chaMabla hurt. I n thn aplnlon of the trusbm tJw ultlmak comollnp party Is Cammemnk ffi, a regulated German bak.

The Slam dknay I m fax Plma#y has granted Cha tamOBl Wnwtlon ffm key I lmWeW undetba m l s l o n ArUde 123A of me 1- Tax (Icrscy) Law 1961. Wtth effcU hrm 1 P n W w 2W. krsw aballshed the a e m m capany reqb far awnp c~npsiu. At the same tlme the standard-rate $lrc&e tax for mmpank bas mmoved f m 2096 to 0%. T h e m sune entW pevraaly exempt from tax wdor the atm

: m Y a n are mu mxBd b096.

In umwdance wM, an undertakhg dam 2nd I J y 1986, Comnenbank f f i es pmmoteo a1 isam of Zero CarDon ca he Malt beara bnbs as desdbed In rote 5, have apreed to nlmburce me Comoanv (or a11 wxmu Inwned. Theweres wd thee- rdmbutsanntare shawn In the Income stat&&.

10 PARWI '

P a w bn omrldaed related If one party hi6 ability m caXrol the other party a a- Infuma! ove tta pw in rn- flnadal oro~sawnaldedslonr Thefdlowlna amCC4Mered b/Uwdd*ectonaftheCanmvm be &tat part&

Uc+dsTSB Omhorc Trust Company M a s himdzb! contralhg paty of the Gnnpany. The directors of UDyds TSE Compmy Offshore Trmt Company LM are 'dl- d l r w of the Compmy,

b Cammrzbmk AG asthe IdUmate mrWllw paty and pavlmg d tha Canpany. Uwds TSB ORshae TNS C a m m Ltd povlded admlnlstratlw and smuntanw sehiwi fa a fee of €9W (2009: €9,000) durlw (he war. M am na wtstandmg fns at Vp yearend. C a n ~ ~ r J c f f i has dmbursed the QxrOsny d all sdmlnlafaave enpensas (or the w u af EU.m ~. (2009: €U,aoo).

The warn mlvable from Canmuzbank AG at 31 December 2010 IS el6,m (20W. 00,000).

11

No slgniflcarit wts mamd behveen the balance shet r&+ and Uw date of sllyllq the Amncgl aarernenhi, whlch would mire adjuptmnts, 6r dos sure In, the Ilnancbl sWemmb.