Výročná správa 2009- doplnenie

ÚVOD

Výročná správa spoločnosti Privatbanka, a.s. (ďalej len banka) je vypracovaná v zmysle § 77 zákona č. 566/2001 Z.z. o cenných papieroch a investičných službách v znení neskorších predpisov, v zmysle § 34 zákona č. 429/2002 Z.z. o burze cenných papierov v znení neskorších predpisov a v zmysle § 20 zákona č. 431/2002 Z.z. o účtovníctve v znení neskorších predpisov.

6. SPRÁVA O FINANČNEJ SITUÁCII

a) INFORMÁCIA O VÝVOJI BANKY, O STAVE, V KTOROM SA NACHÁDZA, A O VÝZNAMNÝCH RIZIKÁCH A NEISTOTÁCH, KTORÝM JE BANKA VYSTAVENÁ (§ 77 ods. 2 písm. B1) zákona č. 566/2001 Z.z. o cenných papieroch a investičných službách v znení neskorších predpisov) (§ 20 ods. 1 písm. A) zákona č. 431/2002 Z.z. o účtovníctve v znení neskorších predpisov) (§ 34 ods. 2 písm. A) zákona o burze v znení neskorších predpisov)

Bilančná suma dosiahla k 31.12.2009 výšku 470 388 tis. EUR. V porovnaní s ultimom roku 2008 sa bilančná suma zvýšila o 12%.

Zisk po zdanení dosiahol výšku 3 035 tis. EUR, čo predstavuje v medziročnom porovnaní nárast o 37%. Banka dosiahla vo väčšine prevádzkových činností lepšie výsledky ako v roku 2008, čoho odrazom je výrazné medziročné zvýšenie prevádzkového zisku. Ku koncu roku 2009 dosiahol prevádzkový zisk výšku 5 273 tis. EUR, čo predstavuje 56% nárast v porovnaní s predchádzajúcim rokom.

Porovnanie finančných ukazovateľov tis. EUR 31.12.2009 31.12.2008 Zmena Zmena v %

Celkové aktíva 470 388 420 900 49 488 12%

Peniaze a pohľadávky voči centrálnym bankám 9 234 129 703 (120 469) (93%) Pohľadávky voči bankám 72 239 52 653 19 586 37% Pohľadávky voči klientom 108 423 96 706 11 717 12% Cenné papiere 277 683 139 496 138 187 99%

Záväzky voči bankám 110 194 12 336 97 858 793% Záväzky voči klientom 279 336 237 850 41 486 17% Záväzky z dlhových cenných papierov 41 820 139 511 (97 691) (70%)

Základné imanie 25 121 25 124 (3) - Vlastné imanie 32 591 27 702 4 889 18%

Prevádzkový hospodársky výsledok 5 273 3 377 1 896 56% Hospodársky výsledok po zdanení 3 035 2 218 817 37%

Vlastné zdroje 27 177 24 876 2 301 9% Primeranosť vlastných zdrojov 12,87% 16,77% (3,9%) (23%)

Výročná správa 2009- doplnenie

Najväčším zdrojom zisku banky v roku 2009 boli čisté úrokové výnosy, ktoré medziročne vzrástli o 25% na hodnotu 8 222 tis. EUR. Na zvýšení čistých úrokových výnosov mali zásluhu najmä medziročný nárast priemerného objemu úverového portfólia, rast úrokovej marže z úverov, medziročné zvýšenie priemerného objemu portfólia cenných papierov, ako aj celkovo vyššia priemerná bilančná suma v porovnaní s predchádzajúcim rokom.

Objem poskytnutých úverov ku koncu roku 2009 dosiahol hodnotu 108 423 tis. EUR, čo predstavuje medziročné zvýšenie o 12%. Portfólio cenných papierov dosiahlo ku koncu roku 2009 objem 277 683 tis. EUR, čo predstavuje medziročný nárast o 99%.

Medziročne rástli aj čisté výnosy z poplatkov a provízií. Zvýšenie čistých výnosov z poplatkov a provízií dosiahlo 28% a ich konečná hodnota bola 1 580 tis. EUR.

K celkovému zisku banky prispel vo významnej miere čistý zisk z obchodovania s cennými papiermi a z devízových a derivátových obchodov. Tento dosiahol v roku 2009 výšku 2 211 tis. EUR, čo predstavuje medziročný rast na úrovni 69%. V rámci tejto položky vzrástol zisk z obchodovania s cennými papiermi a poklesol zisk z devízových operácií, najmä z dôvodu zavedenia meny EUR.

Prevádzkové náklady dosiahli ku koncu roku 2009 výšku 6 758 tis. EUR, čo predstavuje medziročný nárast o 17%. Z nich všeobecné prevádzkové náklady predstavujú 6 214 tis. EUR (medziročný nárast o 17%) a odpisy k hmotnému a nehmotnému majetku 544 tis. EUR (medziročný nárast o 22%). Zvýšené prevádzkové náklady súvisia najmä s otvorením zastúpenia banky v Českej republike (Praha), ako aj s otvorením novej pobočky v Bratislave a nových retailových pracovísk v Košiciach, Nitre a Dunajskej Strede.

Primeranosť vlastných zdrojov k 31.12.2009 dosiahla výšku 12,87% a v priebehu roka 2009 sa znížila o 3,9 percentuálneho bodu.

Ďalšie konkrétne údaje k výsledkom banky v roku 2009 sú uvedené v účtovných výkazoch banky a v poznámkach k účtovnej závierke.

b) INFORMÁCIA O UDALOSTIACH OSOBITNÉHO VÝZNAMU, KTORÉ NASTALI PO SKONČENÍ ÚČTOVNÉHO OBDOBIA K 31. DECEMBRU 2009 (§ 20 ods. 1 písm. B) zákona č. 431/2002 Z.z. o účtovníctve v znení neskorších predpisov)

K dátumu zostavenia výročnej správy sa nevyskytli žiadne významné udalosti, ktoré nastali po skončení účtovného obdobia k 31. decembru 2009.

c) INFORMÁCIA O PREDPOKLADANOM BUDÚCOM VÝVOJI ČINNOSTI BANKY (§ 77 ods. 2 písm. D) zákona č. 566/2001 Z.z. o cenných papieroch a investičných službách v znení neskorších predpisov) (§ 20 ods. 1 písm. C) zákona č. 431/2002 Z.z. o účtovníctve v znení neskorších predpisov)

Banka v roku 2009 napriek pretrvávajúcej hospodárskej kríze dosiahla dobré hospodárske výsledky, a to z hľadiska objemov i vnútornej štruktúry. V roku 2010 banka neočakáva výrazný negatívny vplyv prebiehajúcich globálnych sociálno-ekonomických procesov na svoju činnosť a výkonnosť.

Hlavnou oblasťou aktivít banky je rozvoj privátneho bankovníctva a činností, ktoré s ním úzko súvisia (asset management, treasury). Paralelne s privátnym bankovníctvom bude banka naďalej rozvíjať korporátne bankovníctvo s dôrazom na poskytovanie úverov korporátnym klientom.

Relatívne novou oblasťou činnosti bany je retailové bankovníctvo. Banka už v priebehu roka 2009 posilnila sieť svojich retailových pracovísk, a v tomto trende bude pokračovať aj v roku 2010. Svoje Výročná správa 2009- doplnenie

aktivity v oblasti retailu bude banka orientovať najmä na získavanie termínovaných vkladov od obyvateľstva.

Cieľom banky v oblasti privátneho bankovníctva v roku 2010 je zabezpečiť kontinuálny nárast objemu aktív pod správou. Predpokladom pre dosiahnutie tohto cieľa je aktívna akvizičná činnosť siete privátnych bankárov. Po kvalitatívnej stránke je cieľom banky poskytovať privátnym klientom vysoko individuálne a flexibilné služby, najmä v rámci produktu Privatbanka Wealth Management. Významným prvkom ponuky investičných nástrojov budú emisie korporátnych zmeniek a korporátnych dlhopisov denominovaných v eurách a českých korunách, ktoré bude banka aranžovať najmä pre subjekty v rámci akcionárskej skupiny.

V oblasti korporátneho bankovníctva je cieľom banky v roku 2010 výrazne dynamizovať rast bilančného zostatku úverov. Sústreďovať sa pritom bude na SME sektor. Z hľadiska stratégie bude banka pokračovať v osvedčenom spôsobe poskytovania úverov, ktorý je postavený na dobrom zabezpečení a podporený doterajšími výsledkami klienta. V podmienkach pretrvávajúceho turbulentného ekonomického vývoja sa bude banka orientovať na úverovanie klientov, s ktorými už má ekonomické vzťahy, a teda pozná ich bonitu.

Za účelom zabezpečenia potrebnej zdrojovej základne bude banka vo významne intenzívnejšej miere realizovať vkladové produkty pre retailových klientov s atraktívnym úročením, a tiež emisie svojich dlhopisov.

V súhrnnom vyjadrení banka očakáva na konci roku 2010 bilančnú sumu na úrovni 538 mil. EUR a hospodársky výsledok po zdanení v objeme 3,5 mil. EUR.

Účtovná jednotka nemá vplyv na životné prostredie.

Rozširovaním retailovej siete prispieva k posilneniu zamestnanosti v rôznych regiónov Slovenskej republiky.

Účtovnej jednotke nie sú známe významné riziká a neistoty, ktoré by mali významný vplyv na činnosť účtovnej jednotky.

g) INFORMÁCIE O ZLOŽENÍ A ČINNOSTI PREDSTAVENSTVA A JEHO VÝBOROV (§ 20 ods. 6 písm. f) zákona č. 431/2002 Z.z. o účtovníctve v znení neskorších predpisov)

Zloženie predstavenstva:

Mgr. Ing. Ľuboš Ševčík, CSc. predseda predstavenstva a generálny riaditeľ Ing. Ľubomír Lorencovič podpredseda predstavenstva a vrchný riaditeľ úseku privátneho bankovníctva Ing. Vladimír Hrdina člen predstavenstva a vrchný riaditeľ úseku riadenia rizík a ekonomiky

Činnosť predstavenstva:

Predstavenstvo je štatutárnym orgánom spoločnosti, ktorý riadi činnosť spoločnosti a koná v jej mene. Predstavenstvo rozhoduje o všetkých záležitostiach spoločnosti, pokiaľ nie sú zákonom alebo stanovami vyhradené do pôsobnosti valného zhromaždenia alebo dozornej rady. Predstavenstvo zasadá pravidelne, minimálne raz do mesiaca.

Predstavenstvo v rámci svojej pôsobnosti najmä: a) zvoláva valné zhromaždenie, b) vykonáva uznesenia valného zhromaždenia a dozornej rady,

Výročná správa 2009- doplnenie

c) zabezpečuje a zodpovedá za vypracovanie návrhu a vykonávanie schválenej organizácie a systému riadenia spoločnosti v súlade so zákonom o bankách a zákonom o cenných papieroch, d) zabezpečuje vedenie účtovníctva, obchodných kníh, inej povinnej evidencie, obchodnej dokumentácie a iných dokladov spoločnosti v súlade so všeobecne platnými právnymi predpismi, e) v lehote určenej zákonom oznamuje NBS audítora, ktorého výber schválila dozorná rada a valné zhromaždenie, f) udeľuje a odvoláva prokúru po predchádzajúcom schválení dozornou radou, udeľuje ďalšie písomné splnomocnenia v súlade so schváleným štatútom predstavenstva, g) rozhoduje o použití rezervného fondu a ďalších účelových fondov tvorených zo zisku spoločnosti pokiaľ sú zriadené, h) predkladá, po prerokovaní v dozornej rade, valnému zhromaždeniu na schválenie: 1. návrhy na zmeny stanov, 2. návrhy na zvýšenie a zníženie základného imania a vydanie dlhopisov, 3. účtovné závierky, ktoré je spoločnosť povinná vyhotovovať podľa osobitného predpisu, návrh na rozdelenie zisku alebo vysporiadanie straty, návrh na určenie výšky a spôsobu vyplatenia dividend a tantiém, 4. výročnú správu spracovanú podľa osobitného predpisu, ktorej súčasťou je správa o podnikateľskej činnosti spoločnosti a o stave jej majetku, 5. návrh na zrušenie spoločnosti s predchádzajúcim súhlasom NBS, vymenovanie likvidátora spoločnosti, 6. návrh na zlúčenie, splynutie, rozdelenie spoločnosti, vrátane zlúčenia inej právnickej osoby so spoločnosťou, s predchádzajúcim súhlasom NBS, 7. návrh na predaj podniku spoločnosti alebo jej časti, s predchádzajúcim súhlasom NBS, 8. iné návrhy, o ktorých na základe zákona, alebo stanov rozhoduje valné zhromaždenie, i) predkladá dozornej rade na schválenie materiály uvedené v stanovách, j) informuje valné zhromaždenie: 1. o výsledkoch podnikateľskej činnosti a o stave majetku spoločnosti, 2. o obchodnom pláne a finančnom rozpočte schválenom na bežný rok, k) v pracovnoprávnych vzťahoch robí úkony za zamestnávateľa. Namiesto neho môžu robiť právne úkony aj osoby uvedené v § 9 Zákonníka práce, l) ustanovuje osobu do funkcie riaditeľa odboru vnútornej kontroly a vnútorného auditu na návrh dozornej rady alebo po predchádzajúcom súhlase dozornej rady a po predchádzajúcom súhlase NBS, m) vykonáva zmeny vedúcich zamestnancov spoločnosti, s výnimkou vedúcich zamestnancov priamej riadiacej pôsobnosti predstavenstva a s výnimkou riaditeľa odboru vnútornej kontroly a vnútorného auditu, n) schvaľuje podmienky pracovných zmlúv vedúcich zamestnancov spoločnosti, s výnimkou vedúcich zamestnancov v priamej riadiacej pôsobnosti predstavenstva a s výnimkou vedúceho útvaru vnútornej kontroly a vnútorného auditu, o) zriaďuje a ruší organizačné jednotky spoločnosti, p) schvaľuje finančné a obchodné transakcie s výnimkou finančných a obchodných transakcií schvaľovaných dozornou radou a finančných a obchodných transakcií schvaľovaných inými orgánmi a vedúcimi zamestnancami banky podľa kompetenčného a podpisového poriadku, q) schvaľuje organizačný poriadok spoločnosti, r) zabezpečuje vytváranie materiálnych, personálnych a iných podmienok pre vykonávanie povolených bankových činností, s) informuje dozornú radu o všetkých skutočnostiach, ktoré môžu podstatne ovplyvniť vývoj podnikateľskej činnosti a stave majetku spoločnosti, najmä jej likviditu, t) schvaľuje kompetencie a zodpovednosť vedúcich zamestnancov spoločnosti, na ktorých môže predstavenstvo preniesť aj rozhodovanie o záležitostiach spoločnosti spadajúcich do pôsobnosti predstavenstva.

Výročná správa 2009- doplnenie

Výbory predstavenstva:

Výbor riadenia aktív a pasív koordinuje riadenie bankových aktív a pasív

Úverový výbor zabezpečuje stratégiu a platné zásady obchodnej politiky banky v oblasti úverových obchodov

Investičný výbor stanovuje základnú stratégiu investovania finančných prostriedkov klientov, ako aj investičnej stratégie jednotlivých portfólií v správe odboru Asset Management

Výbor pre informačné technológie koordinuje organizačné, technické, finančné, metodické a právne zabezpečenie IT projektov v banke

Zloženie výborov predstavenstva:

1. Výbor pre informačné technológie

Predseda výboru: -Riaditeľ odboru informačných technológii Podpredseda a tajomník výboru: -Vedúci oddelenia infraštruktúry a prevádzky Členovia výboru: -Ridaiteľ odboru platobného styku -Riaditeľ odboru riadenia rizík -Riaditeľ odboru asset managementu -Riaditeľ odboru účtovníctva -Vedúci oddelenia vývoja IS -Bezpečnostný manažér

2. Úverový výbor a) členovia, ktorí sa zúčastňujú hlasovania:

Predseda: -Vrchný riaditeľ úseku riadenia rizík a ekonomiky Členovia: -Generálny riaditeľ -Vrchný riaditeľ úseku privátneho bankovníctva -Riaditeľ odboru úverového rizika b) Členovia, ktorí sa nezúčastňujú hlasovania:

-Riaditeľ odboru riadenia rizík -Riaditeľ odboru treasury -Vedúci oddelenia analýz odboru úverového rizika

3. Investičný výbor

Predseda výboru: -Vrchný riaditeľ úseku privátneho bankovníctva Podpredseda výboru: -Riaditeľ odboru asset managementu Členovia výboru: -Riaditeľ odboru treasury a investičného bankovníctva -Zamestnanci odboru asset managementu

Výročná správa 2009- doplnenie

4. Výbor riadenia aktív a pasív

Predseda: -Generálny riaditeľ Členovia: -Vrchný riaditeľ úseku privátneho bankovníctva -Vrchný riaditeľ úseku riadenia rizík a ekonomiky -Riaditeľ odboru treasury -Riaditeľ odboru riadenia rizík -Riaditeľ odboru asset managementu -Riaditeľ odboru úverového rizika

PENTAIIIVESTMENTS LIMITED

ANNUAL REPORTAND PARENTCOMPANY SEPARATEFINANCIAL STATEMENTS

FORTHEYEARENDED 31DECEMBER 2OO9 PENTA INVESTMENTSLIMITED NOTF"STO THE PARENTCOMPAI\Y SEPARATEFINANCIAL STATEMENTS FOR THE YEAR ENDED31 DECEMBER2OO9

Contents

Page

Directorsand professional advisers I

Directors'report 2-3

Auditors'repot 4-5

Statementof ComprehensiveIncome 6

Statementof FinancialPerformance

Statementof Changesin Equity 8

Statementof CashFlow 9

Notes to the Financial Statements l0-66 PENTAINVESTMENTS LIMITED DIRECTORSAND PROFESSIONAL AD\TSERS

Directors RadoslavZuberec - Slovak NicosA. Nicolaou- Cypriot

Secretary ConfuciusServices Limited Limassol,Cyprus

RegisteredOffice C & I CenterBuilding, 2nd Floor, 212Agias Phylaxeous & PolygnostouStreet, CY-3083,Limassol, Cyprus

Auditors DeloitteLimited Limassol,Cyprus

Legaladvisers Georgiades& Pelides Nicosia,Cyprus

Bankers Privatbanka,a.s. Bratislava,Slovak Republic

LBBW BankCZ, a.s. Prague,Czech Republic

Citibank(Slovakia) a.s. Bratislava,Slovak Republic

Citibank,a.s. Prague,Czech Republic

HellenicBank Limited Nicosia,Cyprus

SocieteGenerale Cyprus Paphos,Cyprus

Marfin PopularBank Public Co. Ltd Nicosia,Cyprus

NationalBank of Greece(Cyprus) Limassol,Cyprus

TatraBank Bratislava,Slovak Republic PENTA INVESTMENTS LIMITED DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2()O9

The Board of Directors presentsits report togetherwith the auditedparent company separatefinancial statementsofPenta InvestmentsLimited for the year ended3l December2009.

Consolidatedfinancial statementsofthe Companyand its subsidiaries(the Group) for the year 2009 have beenseparately presented and authorisedfor issueon the samedate as thesefinancial statements.

Incorporation and principal activities PentaInvestments Limited ("the company") was incorporatedin cyprus on 28 March 2005 as a private limited liability companyin accordancewith the provisionsof the cyprus company Law cap.ll3. The Companywas incorporatedat that time underthe name of PentaTrust Limited and in May 2005 changed r.tsname.

The principal activitiesofthe Companywhich remainedunchanged from last year comprisethe holding of investmentsin subsidiariesas well as loan financing activities to subsidiariesand other related and unrelatedparties and the provision of consultingand advisoryservices. The Companyis also engagedin the trading of sharesand other securities.

Results The Profit for the year after taxation,was Euro 403.87i.612 (2008: F;ro 82.946.546).

Dividends On 18 December2009, the Board of Directorsdeclared the paymentof an interim dividend amountingto Euro58.152.024 out of2007 profits(2008: Euro 56.600.000).

Review ofthe development,financial performance and current position of the Company The current financial performance and position of the Company as presentedin these financial statements areconsidered satisfactory.

Risks and uncertainties The Company'sactivities are subjectto variousrisks and uncertaintiesassociated with the industriesand the generaland economicenviro nent in which the Company'ssubsidiaries operate. The operationsare affected by a number of factors including but not limited to: . Intemationaland national economic and geopoliticalconditions o Movements in foreign exchangeand interest rates o Tax regulations,legal and environmentaldevelopments within the EuropeanUnion . Contractedissues, guarantees and litigations.

Expectedfuture developmentsof the Company The Board of Directors expectsthat the Companywill continueits growth tkough new acquisitionsof businessesmainly in the CentralEast Europe region.

Branches The Company maintains significant branches in the Czech Republic, Slovakia, Poland and the Netherlands. PENTA II{VESTMENTS LIMITED DIRECTORS'REPORT FOR THE YEAR ENDED 31 DECEMBER 2OO9

Share Capital the year under There wer'e no changes in the authorised or the issuetl share capital of the company for review.

Significant eventsafter the reporting period AIi significant events that occurred after the reporting period are described in note 27 of the financial statements.

Board of Directors The members of the Board of Directors at 31 December 2009 and at the date of this report are shown on page l. All the membersof the Board of Directors will continuein office. There were no significant chinges il the assignmentofresponsibilities ofthe Board of Directorsduring the period'

Auditors The auditors Messrs Deloitte Limited have expressed their willingness to continue in office and a resolution authorising the Directors to fix their remuneration will be submitted at the forthcoming Annual GeneralMeeting.

OF THE BOARD OF DIRECTORS

6 August2010 Deloitte. DeloifteLimited MaximosPlaza, Tower 1, 3rd Floor 213Arch. Makariou lllAvenue CY-3030Limassol, Cyprus Mail:PO Box 58466 CY-3734Limassol, Cyprus Tel: +35725 86 86 86 Fax:+357 25 86 86 00 IndependentAuditor's Report intolimassol@deloitte(om www-deloittecorYcy TO THE MEMBERS OF PENTA IN\'ESTMENTS LIMITED

Report on the FinancialStatements

We have audited the parent company financial statementsof Penta Investments Limited (the "Company") on pages6 to 66 whichcomprise the statementof financialposition as at 31 December2009, and tle statementsof comprehensiveincome, changesin equrty and cash flows for the year then ended and a summaryof signiflcant accountingpolicies and other explanatorynotes.

We havereported separately on the consolidatedfinancial statementsof the Companyand its subsidiaries (the Group) for the year ended31 December2009.

Board ofDirectors' Responsibilityfor the Financinl Statements

The Company's Board of Directors is responsiblefor the preparation and fair presentationof these financial statementsin accordancewith Intemational Financial Reporting Stgndaldsas adoptedby the EuropeanUnion (EI) and the requirementsofthe Cyprus CompaniesLaw, Cap 113. This responsibility includes: designing,implembnting and maintaining intemal control relevant to the preparationand fair presentationof financial statementsthat are free from materialmisstatement, whether due to fi-audor error; selecting and applying appropriate accounting policies; ald making accounting estimates that are reasonablein the circumstances.

Auditor'sResp ons ibility

Our responsibilityis to expressan opinion on thesefinancial statementsbased on our audit. We conducted our audit in accordancewith I-ntemationalStandards on Auditing. ThoseStandards require that we comply with ethical requirementsand plan and perform the audit to obtain reasonableassurance whether the financial statementsare free from materialmisstatement.

An audit involvesperforming procedures to obtain audit evidenceabout the amountsand disclosuresin the financial statements.The proceduresselected depend on the auditor'sjudp.ent, including the assessment of the risks of material misstatementof the financial statements,whether due to fraud or error. In making those risk assessments,the auditor considersinternal control relevant to the entity's preparationand fair presentationof the financial statementsin order to design audit proceduresthat are appropriatein the circumstances,but not for the purposeof expressi:lgan opinion on the effectivenessofthe entit/s intemal control. An audit also includes evaluating the appropriatenessof accounting policies used and the reasonablenessof accountingestimates nade by the Board of Directors, as well as evaluatingthe overall presentationof the financial statements.

We believethat the audit evidencewe haveobtained is sufficient and appropriateto provide a basisfor our auditoninion.

Boad MembeG:Chr st 5 M Chrnoforcu(Ch€f t{e(utve ofi(er),t elthercsN Ph ppou,Nc6S Kyiakd6, Ni(osD Papakyda(ou,A$os Chrysanthou, Conas Ge.rghadF, AntonisIaloli5, Pan6 Pdpadopoulot Piens M Markou, Nko5Chdalahbou' N corspanoudis, Mara P$(halis, AlexisAga$(sut PaulMai5, Pan.6 Papam.hael,ahd5l6 Papama'k'n6, CeoBeMandes, Kerry !!hle, AndrearGsrg ou, Chn6 Neodeous,Demetr Papapedeous, Andreas And@u, ThephansThephanous,A e.or Papakbndrou, MKheLctunolorcu (Channan Emerlut, A$ciate:Ft5 conttantLnou

Deloitterele6 lo oned morcol Deo ne Tode Tohmalsu,a swss Vete n, ts nehao* ol membQrlirms, ead of whi(h i5 a hgally5epack andindepend€nt enrry Phales€€ nltl4l detattte.ontdbout. lora delasd des(lplon ollhe leqalnrudu@olDeo ne lou.heTohmaEu and rls mehber frhr I DeortetimredisJprivarecompany,regislercdncypru!(ReqNo162812)offi(€srNcosra,tnassol,llhaca f/emberof DeloitteTouche Tohmatsu Deloitte.

Opinion

In our opinion, the financial statementsgive a true and fair view of the hnancial position of the parent companyPenta InvestmentsLimited, as of 31 December2009, and of its financialperformance and its cash flows for the year then ended in accordancewith Intemational Financial Reporting Standardsas adoptedby the EU andthe requirementsofthe CyprusCompanies Law, Cap1 13.

Report on Other Legal Requirements

Pursuantto the requirementsof the CompaniesLaw, Cap.1 13, we reportthe following: o We have obtainedall the hformation and explanationswe considerednecessary for the purposesof our audit. o [r our opinion, properbooks of accounthave been kept by the Company. . The Company'sfinancial statements are in agreementwith thebools ofaccount. o In our opinion a:rd to the best of our fuforrnation and accordingto the explanationsgiven to us, the filancial statementsgive the hformation requiredby the CompaniesLaw, Cap. I 13, in the mannerso required. r In our opinion, the information given in the report of the Board of Directors on pages2 to 3 is consistentwith the financial statements.

Other Matter

This report, including the opinion, has beenprepared for and only for the Company'smembers as a body in accordancewith Section156 of the CompaniesLaw, Cap.l13 and for no otherpurpose. We do not, in giving this opinion, acceptor assumeresponsibility for any other purposeor to any other persoD.to \r.hom this report may be dilulged.

Da\olV\o L:.!...\e-t DELOITTE LIMITED Certified Public Accountants(Clprus)

Limassol,6 August2010 PENTA IN\'ESTMENTSLIMITED STATEMENTOF COMPREHENSIVEINCOME FORTHE YEARENDED31 DECEMBER2OOg

2009 2008 Notes Euro Euro

Operating revenue 5 907.153.557 263.362.991 Operatingcosts 5 (s3.494.930) (s4.786.r04) Gross profit 853.658.627 208.576.887 Otherexpenses, net 6 (3s2.431.827) (128.826.l8l) Othergains and losses,net 7 u7.672.13r) 53.783.493 Administration and other expenses (82.643.630) (3s.402.081) Operating profit 400.911.039 98.132.1t8 Financialexpense, net 8 (692.4s7\ (r4.946.4r2) Profit before taxation 9 400.218.582 83.185.706 Taxation 10 3.653.030 (239.r60) Profit after taxation 403.87t.6t2 82.946.546

Other comprehensiveincome Loss on cashflow hedgearising on derivative designatedin hedgeaccounting relationship - Realised 319.909 Other comprehensiveincome for the year after tax 319.909 Total comprehensiveincome for the year 403.871.612 83.266.455

The noteson pages10 to 66 form an integralpart of thesefinancial statements. PENTA IN!'EST}TENTS LIMITED STATEN'IEI*T OF FINAr\CIAL POSITION FOR THE YEAR ENDED 31 DECEMBER 2()()9 2009 2008 Notes Euro Euro ASSETS Non-currentassets Property,plant and equipment ll 2.366.590 2.664.670 intangibleassets T2 1.758.986 t.483.826 Investmentsin subsidiaries l6 772.964.831 407.857.354 Derivativefinancial instruments 18 30.561.105 Deferredtax asset 10 5.000.000 Loansand advances l9 ttl .366.412 t70.'715.239 Total non-currentassets 899.4s6.819 613.282.194

Current assets Investmentsheld for trading 14 8.088 85.070 Investmentsheld for sale l5 1.545.742 90r.213 Investmentsin subsidiaries- availablefor sale t6 5.430 2.384.906 Loansand advances 19 252.426.796 22r.337.548 Tax receivable- branches l0 1.365 204.952 Tradeand otherreceivables 20 74.348.1.32 10.658.331 Derivativefinancial instruments 18 13.656.000 2',1.095.427 Cashand cashequivalents 2\ 46.460.072 73.055.\94 Total current assets 388.451.625 335.',l22.70r Total assets 1.287.908.444 949.004.895

EQUITYAND LIABILITIES Equity Sharecapital 22 312.704 312.104 Sharepremium 72.301.786 72.301.786 Otherreserves (2.367.0t6) (2.367.016) Retainedeamings 467.7 09.094 121.989.s06 Total equity 537.956.568 192.236.980

Liabilities Non-current liabilities Derivativefi nancialinstruments 18 289.254 Borrowings 1t8.740.339 117.881.069 Total non-currentliabilities 119.029.593 117.881.069

Current liabilities Derivativefi nancialinstruments 18 761.130 Creditorsand accruals 24 171.923.548 93.212.4t7 Borrowings 23 457.059.313 545.673.025 Taxation t0 |.178.292 1.404 Total current liabilities 630.922.283 638.886.846 Total liabilities 749.951.876 756.767.91s Total equity and liabilities 1.28'7.908.444 949.004.89s

The were approvedby the Board on 6 August 2010 and signedon its behalfby:

Radoslav Director \o q \oF- c\

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o E al PENTA INVESTNIENTSLIMITED STATE}IENT OF CASH FLOWS FOR THE YEAR ENDED31 DECEMBER2OO9

Cash florvs from operating activities Profit beforetaxation 400.2t8.582 83.185.706 Adjustmentslor: Depreciation 790.698 692.333 Amortizationof computersofhvare 290.272 157.585 Impairmentof receivables 6 66.965.456 99.024.213 Impairment/ rwite offof investments 6 266.347.3'79 26.904.383 Fair valuechange ofderivative financialinstmments l8 45.050.916 (54.838.540) Gain ftom disposalofsubsidiaries and other ln\.eStments 5 (3.355.873) (r5.746.6t'.7) Loss/(gain)on saleofpropetty, plant & equipment t2.541 (9.443) Losson saleofintangible assets 5.831 Realisedloss on derivativefinancial instruments (27.3',78;785) 2.532.321 Operating profit before rvorking capital changes 748.941.186 l4t .90'7.'772 (Increase)/decreasein tradeand other receivables (63.689.801) 2.817.37'1 Increasein creditorsand accruals 20.ss9.10'7 23.t33.363 Cash inflorrs from operations 705.810.492 167.8s8.512 Taxationrefill]d€d.i(paid), net 33.504 (239.160) '705.843.996 Net cash inllow from operating activiti€s 167.6t9.352

Cashflors from investingactivities Paynentsto acquiresubsidiary companies 16i (432.303.8s3) (42.364.854) Subscdptionto the new capitalissue ofsubsidiaries 16ii (20s.972.r82) (130.019.342) Net cashoutflow from loansgranted (44.',|0s.877) (182.473.538) Purchasesofproperty, plant and equipment 1I (1.948.136) (l.487.182) Purchaseof intangibleassets t2 (s65.432) (r.2r9 .'7 | t)_ Pa).rnentsto acquireother investments 13 (1;712.125) Proceedsfiom saleofsubsidiary companies and other investments 8.809.504 79.735.966 Proceedsfrom saleofother investments 4.891.662 7.t8'.7.685 Proceedsfrom saleofpropefty, plant & equipment r.442.978 t62.'.lt8 Net cashacquired fiom acquisitionofsubsidiaries l7 3t2.498 Net cash outflows from investing activities (6',72.063.46t) (270.165 .',l 60)

Cash florvs from financing activities Net cash(outflow)/inflow from borrowrngs (8',7.'154.442) t53.773.567 Net cashinflov(outflow) from closedderivatives 27.378.',785 (2.532.185) Net cash (outflow)/inflow from financing activities (60.37 5.6s7) 151.241j82

Net (decrease)/increasein cash and cash equivalcnts (26.s9s.122) 48.694.974 Cashand cashequivalents at beginningofthe year 73.055.t94 24.360.220 Cashand cashequivalents at endofthe year 2l 46.460.0',72 73.055.194 PENTA INVESTMENTS LIMITED

NOTES TO THE PARENT COMPAI{Y SEPARATE FINANCIAL STATEMENTS FORTHE YEARENDED 31 DECEMBER2OOg

Incorporation and principal activities PentaInvestments Limited ("the company") was incorporatedin cyprus on 28 March 2005 as a private limited liability companyin accordancewith the provisionsof the CyprusCompanies Law Cap.1l3.

The principal activitiesofthe Companycomprise the holding and tradeofinvestments in sharesand other securitiesas well as loan financingactivities and the provision of consulting,advisory sewices and other servicesincluding intermediation and reshxcturing.

Significant Accounting policies The following accountingpolicies were adoptedby the Companyand appliedconsistently and are those that are consideredsignificant or materialfor the financial resultsand for the presentationof the financial statements.

Basisof preparation The financial statementsare preparedin accordancewith the IntemationalFinancial Reporting Standards ("IFRS") as adoptedby the EU and comply with the requirementsof the Cyprus CompaniesLarv, Cap.1l3.

These financial statementsrepresent the separateparent company financial statementsfor compliance with the requirementsof the Cyprus Ilcome Tax Law and also for the needsof various usersof the said financial statements.

The Company has also prepared consolidaiedflnancial statementsin accordancewith International Financial Reporting Standards as adopted by the European Union (EU) for the Company and its subsidiaries(the "Group"). The Consolidatedfinancial statementscan be obtainedfrom the registered office of the Company.

Users of these parent's separatefinancial statementsshould read them together with the Group's consolidatedfinancial slatementsfor the year ended 3l December2008 in order to obtain a proper understandingofthe financialposition, performance and cashflows ofthe Companyand the Group.

Adoption of new and revised International Financial Reporting Standards In the currentperiod, the Companyhas adoptedall of the new and revisedStandards and Interpretations issuedby the IntemationalAccounting StandardsBoard (the "IASB') and the IntemationalFinancial ReportingInterpretations Committee (IFRIC) ofthe IASB that are relevantto its operationsand effective for accountingperiods beginning on I January2009. This adoptiondid not have a materialeffect on the accountingpolicies of the Groupand the Company,with the exceptionof the following:

(a) IntemationalAccounting Standard(IAS) I "Presentationof financial statements"(revised). As a result of the adoptionof this revisedstandard, the Group and the Companypresents in the statement of changesin equity all changesresulting from tansactionswith shareholders,whereas all changesin equity resulting from transactionswith non-shareholdersof the Company are presentedin the statementof comprehensiveincome. The presentationof comparativeinformation has been adjusted in conformity with the revised standard.The changehad an impact only on the presentationof the financialstatements.

l0 PENTA INVESTMENTS LIMITED

NOTES TO THE PARENT COMPANY SEPARATE FINANCIAL STATEMENTS FORTHE YEAR ENDED 31 DECEMBER 2OO9

2. SignificantAccounting policies (continued)

Starulards and Interpretations issued but nol yet elfective At the dateof authorisationofthese financial statements,the following Standardsand IntemreLationswere in issue but not yet effective:

Standard / Interpretation Effectivefor annualperiods beginningon or after (i) Adopted by the European Union IFRS I "First time adoption of Intemational Financial Reporting 1 July2009 Sandards"(Revised)

IFRS 3 "Businesscombinations" (Revised) I July2009

IntemationalAccounting Standard(IAS) 27 "Consolidatedand i July2009 separatefinancial siatements" (Amended)

lntemational Financial Reporting Interpretation Committee 1 July2009 (IFRIC) 17 "Distribution ofnon-cashassets to owners"

Amendmentsto IAS 39 "Eligible hedgeditems" 1 July2009

Inprovements to IFRSs 2008 - Arnendments to IFRS 5 "Non- 1 July2009 currentassets held for saleand discontinuedoperations"

Amendmentsto IAS 32 "Classificationofrights issue" 1 February2010

(ii) Not yet adopteil hy the European Union knprovementsto IFRSS- 2009 1 July2009 / 1 January2010

Amendments to IFRS 2 "Group cash-settled share-based 1 January2010 paymenttransactions"

'Additionai Amendments to IFRS I exemptions for first-time 1 January2010 adopters"

IFRIC 19 "Extinguishing financial liabilities with equity 1 July2010 instruments"

Arnendments to IFRIC 14 "Prepayments of a minimum funding I January201 I requirement"

IAS 24 "Relatedparty disclosures"(Revised) I January201 1

IFRS 9 "Financial instruments" I January2013

Thedirectors anticipate that the adoption ofthese Standards and Interpretations in fuhrreperiods will haveno materialimpact on thefinancial statements ofthe Company.

1l PENTA INVESTMENTS LIMITED

NOTES TO THE PARENT COMPAT{Y SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2OO9

2. Significant Accounting policies (continu€d)

Accounting convention The financial statements,which are expressedin Euro, have beenprepared under the historical cost convention as modified by the fair valuation and revaluation of certain flnancial instruments, as explainedin the accountingpolicies below.

Revenuerecognition Revenue representsprofit on assignmentof receivablesand recovery from acquired receivables, dividend income, interest received from debtors and banks, the net profit from sale of stocks of shares andbonds and otherinvestments and incomefrom advisorywork.

The Company recognisesrevenue when the amount of revenuecan be measuredreliably, if it is probable that the future economic benefits will flow to the Company and when the specific criteria explainedbelow aremet:

(a) Dividend income Dividend incomeis recognisedwhen the shareholder'sright to receivepayment has been established.

(b) Interest income Interest income and interest expenseare recognizedon a time proportion basis using the effective interestmethod.

The effective interestmethod is a method of calculatingthe amortisedcost of a financial assetor a financialliability by allocatinginterest income and expenseover the relevantperiod.

The effective interest rate is the rate that exactly discounts estimated future cash paymenb or receipts over the expected life of the financial instrument so that they correspond to the net carrying amount of the financial assetor liability.

(c) Assignmentof receivablesand recovery of acquired receivables Gain arisingon settlementofacquired receivableis recognisedupon realisationofreceivables. Gam on assignmentof receivablesis recognisedwhen the risks and rewards of omership of the asset are transferred to the buyer.

(d) Advisory and consulting work Incomearising from provision of advisoryand other consultingwork is recognisedupon renderingof servicesand client acceplance.

(e) Gain on disposalof investments Gain on disposalof investmentsin subsidiariesand other investmentsis recognisedwhen the rights to receive cash flows from the investments have been transfened to the buyer and the Company has transferred subsLantiallyall risks and rewards of ou,nership.

12 PENTA INVESTMENTS LIMITED NOTES TO THE PARENT COMPAI{Y SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2OO9

2. Significant Accounting policies (continued)

Foreign currencies Items-includedin the Company's financial statementsare measuredusing the currency of primary econornic environment in which the entity operates (the functional currency). The financial statements are presentedin Euro being the Company'sfunctional and presentation currency' Transactionsin currenciesother than the functionalcurrency are translated into the functional currency at exchange rates which approximate those applicable at transaction dates. Foreign currency monetary assetsand liabilities at the statementof financial position dateare translatedinto functional cuffency at exchangerates that approximatethose ruling at that date. Any gain or loss arising from a changein exchangerates subsequent to the date of the transactionis includedas an exchangegain or loss in the statementof comprehensiveincome. Borro'rvingcosts and financial expenses Financialexpenses comprise of interestexpenses, bank charges,foreign exchangegains and lossesand fair valuegains or lossesof derivativefinancial instruments. Borrowing costsdirectly attributableto the acquisition,construction or productionof qualifying assets, which are assetsthat necessarilytake a substantialperiod of time to get readyfor their intendeduse, are addedto the cost of thoseassets, until suchtime as the assetsare substantiallyready for their intended useor sale. All other borrowing costs are recognisedin the statementof comprehensiveincome in the period in which they are incurred.

Taxation lncometax expenserepresents the sum ofthe tax cunently payableand defened tax. The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit reportedin the statementof comprehensiveincome becauseit excludesitems of income or expenses that are taxable or deductible in other years and it further excludes items that are never taxable or deductible.The Company's liability for cunent tax is calculatedusing the tax rates that have been enactedor substantivelyenacted by the statementof financial position date. Deferredtax is recognisedon differencesbetween the carrying amountsof assetsand liabilities in the financial statementsand the correspondingtax basesused in the computationof taxableprofit, and is accountedfor using the balancesheet liability method.Defened tax liabilities are generallyrecognised for all taxable temporary differences and deferred tax assetsto the extent that is probable that taxable profits will be availableagainst which thosedeductible temporary differences can be utilised. Deferredtax assetsand liabilities are measuredat the tax rates that are expectedto apply in the period in which the liability is settledor the assetrealised, based on tax rates (and tax laws) that have been enactedor substantiallyenacted by the statementoffinancial position date. Legal mergers, common control transactions Businesscombinations in which all the combining entitiesand/or businesses ultimately are conholled by the same party, before and after combination, are accounted for using the principal of merger accountingas follows. The Company does not restate the underlying assetsand liabilities of the acquiredentities/businesses, but insteadincorporate them at the amountrecorded in the books of the acquiredentities, as adjustedonly to achieveharmonization of accountingpolicies. Any difference arising between the cost of investmentsand the aggregatebook value of net assetsabsorbed are recognizedas separatereserve in equity.

1J PENTA IN\,'ESTMENTS LIMITED

NOTES TO TIIE PARENT COMPA}IY SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2OO9

2. Significant Accounting policies (continued)

Plant and equipment Plant andequipment are carriedat cost lessaccumulated depreciation. Acquisition cost includesthe purchaseprice plus other costsdirectly attributableto the acquisitionof the assets.

The costsof expansion,modemisation, or improvementsleading to increasedproductivity, capacity or efficiencyare capitalised. Maintenance and repair expenses are expensedas incuned.

Where the carryingamount of an assetis greaterthan the amountthat it is estimatedto be recoverable, it is written down to its recoverableamount.

The Companydepreciates its plant and equipmenton a shaight-linebasis in order to write offthe cost ofeach assetless the estimatedresidual value over its estimateduseful life.

The periodof estimateduseful life appliedon averageis as follows:

Office equipment 10 years Fumiture,fixhrres and fittings 10 years Computer Hardware 5 years Motor Vehicles 5 vears

Intangibles Theseconsist of computersoftware and allocatedflight hoursofan airplane.

These are carried at cost less any accumulatedamortisation and impairmentlosses. Amortisation is calculatedusing the shaightline methodover their useful life ofthe intangibles.

The amortisationbegins when the intangible is availablefor use, i.e. when it is il the location and conditionnecessary for it to be capableofoperating in the mannerintended by management.

Computersoftware is amortisedover a period of threeyears. The "flight hours" are amortisedover a period of five years.

Impairment of Tangible and Intangible Assets At each statementof financial position date, the Company reviews the carryiDg amouns of its tangible and intangibleassets to determinewhether there is any indicationfor impairment.Ifany suchindication exists, the recoverableamount of the asset is estimatedin order to determinethe extent of the impairmentloss (if any). For the purposeof assessingimpairment, assets are grouped at the lorvest levelsfor which thereare separatelyidentifiable cash flows (cash-generatingunits).

Intangibleassets with indefiniteuseful lives and intangibleassets not yet availablefor use are testedfor impairment annually, and whenever there is an indication that the assetmay be impaired.

Recoverableamount is the higher of fair value lesscosts to sell and value in use.I-n assessing value in use,the estimatedfuture cashflows are discountedto their presentvalue using a pre-tax discountrate that reflectscurrent assessments ofthe time valueofmoney andthe risks specificto the asset.

t4 PENTA NVESTMENTS LIMITED

NOTES TO THE PARENT COMPANY SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2()O9

2. Significant Accounting policies (continued) Impairment of Tangible and Intangibte Assets(continued) If tire recoverableamount of an asset(or cash-generatingunit) is estimatedto be less than its carrying amount,the carrying amount of the asset(cash-generating unit) is reducedto its recoverableamount. An impairmentloss is recognisedimmediately in the statementof comprehensiveincome, unless the relevant asset is carried at revalued amount, in which case the impairment loss is treated as a revaluationdecrease. Where an impairment loss subsequentlyreverses, the reversal is recognisedimmediately in the statementof comprehensiveincome, unless the relevantasset is carriedat a revaluedamount, in which casethe reversalofthe impairmentloss is treatedas a revaluationrncrease. Investments in subsidiaries Investmentsin subsidiariesare carriedat cost less any impairmentprovisions. Theseare undertakings over which the Companyhas the ability to control their financial and operatingdecisions. Investmentsin associates These are undertakings over which the Company generally have between 20Vo and 50% of the voting rights,or over which the Companyhas significantinfluence, but for which it doesnot havecontrol. lnvestmentsin associatedundertakings are statedat cost lessprovision for any permanentdiminution in value. Financial assets The Companyclassifies its financial assetsin the following categories:financial assetsat fair value though profit or loss, loans and hade receivables,held to mahrity investmentsand available-for-sale financial assets. The classification dependson the purpose for which the financial assetswere acquired. Managementdetermines the classificationoffinancial assetsat initial recognition. Financial assetsare recognisedand derecognisedprimarily on settlementdate where the purchaseor sale of an investment is under a contract whose terms require delivery of an investment within a time frame establishedby the market concemed. The investmentsare initially recognisedat fair value plus transactioncosts for all financial assetsnot carried at fair value throughprofit or loss.Financial assets classifiedas fair valuetkough profit or loss,are initially recognisedat fair value. (a) Finatrcial assetsat fair value through profit or loss (FVTPL) This categoryconsists of financial assetsheld for trading and those designatedat fair value tfuough profit or loss at inception. A financial assetis classifiedas held for trading if acquiredprincipally for the purpose of selling in the short term. Derivatives that are not designatedand effective for hedging are also categorisedas at FVTPL. Financial assetsdesignated as at fair value tfuough profit or loss at inception are those that are managedand their performanceis evaluatedon a fair value basis, in accordancewith a documentedinvesfinent shategy. Assets in this categoryare classihed as current assetsif they are either held for trading or are expectedto be realisedwithin twelve months of the slatementof flnancial positiondate.

All financial assetsat FVTPL are statedon the statementof financial position date at fair value. Any realisedand unrealisedgain and lossesare recognisedin the statementof comprehensiveincome as "other sains/losses".

l5 PENTA IN\'ESTMENTS LIMITED

NOTES TO THE PARENT COMPANY SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2OO9

2. Significant Accounting policies (continued) Financial assets(continued) (b) Loan and trade receivables These are financial assetswith fixed or determinable pa;'ments and fixed maturities that are not quoted in an activemarket. The Company'sloans and receivablescomprise mainly of "trade receivables"and "loansprovided to relatedand unrelatedparties" The accountingpolicy oftrade receivablesis disclosed in caption"Trade receivables"of the Note "Significant AccountingPolicies". After initial recognition loan receivablesare subsequentlymeasured at the amortised cost using the effective interest rate method, less allowance for impairment. Amortised cost is calculated by taking into account any discountor premium on acquisitionand feesand coststhat are an integralpart of the effectiveinterest rate.The amortisationis includedin "Interestincome" aspart ofoperating revenue.Losses arising from impairmentare recognised in the statementof comprehensiveincome within "other expenses". (c) Held to maturity investments Held+o-matuity investmentsare non-derivativefinancial assetswith fixed or determinablepayments and fixed maturitiesthat the Company'smanagement has the positive intention and ability to hold to maturity. After initial recognitionmeasurement the said investmentsare measuredat amortisedcost using the effectiveinterest rate method. (d) Available for sale financial assets Available-for-salefinancial assetsare non-derivativesthat are either designatedin this categoryor not classifiedin any of the other categories.These are mainly investmentsheld with an unspecifiedperiod of holding. They are included in non-cunent assetsunless managementintends to disposeof the investmentwithin twelve months of the statementof financial position date. They include mainly investmentscurrently under liquidation. Available for sale investmentsare fairly valued at the statementof financial position date and any unrealisedgains or lossesare recognisedin "revaluation reserve" in equity. When the securitiesare disposed of, the cumulative gain or loss previously recognisedin equity is reportedin the statementof comprehensiveincome. A.ny lossesarising from impairment(permanent) of theseinvestments are recognisedin the statementofcomprehensive income as "other expenses". The fair values of quoted investmentsare basedon current bid prices and prices from recentmarket transactions.If the marketfor a financial assetis not active (and for unlistedsecurities), the Company establishesfair value by using valuation techniques. These include the use of recent arm's length transactions,reference to other instrumentsthat are substantiallythe sameand discountedcash florv analysis,making maximum use of market inputs and relying as little as possible on entity specific inputs.When the fair value of the investmentscannot be reliably determined,then the investmentsare statedat cost lessany impairmentprovisions. Impairment of financial assets The Companyassesses at each statementof financial position date whether there are indicationsfor impairment. A financial assetor a group of financial assetsis deemedto be irnpairedif, and only if, there is objectiveevidence of impairmentas a result of one or more eventsthat has occurredafter the initial recognitionof the asset(an incurred"loss evenf') and that loss event (or events)has an impact on the estimatedfuhre cash flows of the furancial assetor the group of financial assetsthat can be reliably estimated.

l6 PENTA INYESTMENTS LIMITED NOTES TO THE PARENT COMPAI{Y SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2OOS

2. Significant Accounting policies (continued) Impairment of financial assets(continued) Evildenceof impairment may include indications that a borrower or a group of borrowers rs experiencingsignificant financial difiiculty, default or delinquencyin interest or principal Payments, the probability ihat they will enter bankruptcyor other financial reorganisationand where observable data indicateihut th"." is a measurabledecrease in the estimatedfuture cashflows, such as changesin arrearsor economicconditions that correlatewith defaults.

Impairmentof loansand advances ThL Companyassesses for eachindividual loan whetherobjective evidence of impairmentexist. If thereis evidencethat an impairmentloss has been incurred, the amountof the loss is measuredas the differencebetween the asset'scarrying amount and the presentvalue of estimatedfuture cash flows (excluding future expected credit losses that have not yet been incurred). The canying amount of the assetis reducedthrough the use ofan allowanceaccount and the amountofthe loss is recognisedin the statementof comprehensiveincome. Interest income continuesto be accruedon the reducedcarrying amount based on the original effective interestrate of the asset.Loans togetherwith the associated allowancefor doubfful debts are written off when there is no realisticprospect of future recoveryand all collateralshave been realised or havebeen transferred to the Company.If, in a subsequentyear, the amountof the estimatedimpairment loss increasesor decreasesbecause of an eventoccurring after the impairment was recognised,the previously recognisedimpairment loss is increasedor reducedby adjustingthe allowancefor doubtful debts.

The presentvalue of the estimatedfuture cash flows is discountedat the financial asset'soriginal effective interestrate. If a loan has a variable interestrate for measuringany impairmentloss is the currenteffective interest rate. The calculationofthe presentvalue of the estimatedfuture cashflows of a collaterisedfinancial assetreflects the cash flows that may result from foreclosureless costs for obtainingand selling the collaterat,whether or not foreclosureis probable.

knpairment of held to maturitv investments The Companyassesses at eachstatement of financial position date,whether there is objectiveevidence for impairmentof held to maturity invesffnents.If there is objectiveevidence that an impairmentloss has been incurred,the amount of the loss is measuredas the differencebetween the asset'scarrying amount and the present value of the estimated fuhre cash flows. The carr;ring amount of the asset is reducedand the amountofthe loss is recognisedin the statementof comprehensiveincome.

Impairmentof available-for-saleinvestments The Companyassesses at eachstatement of hnancialposition date,whether there is objectiveevidence that an available-for-saleinvestment is impaired.In caseof equity investmentsclassified as available for sale, objective evidencewould include a significant prolonged decline in the fair value of the investmentbelow its cost. Where there is evidenceof impairment,the cumulativeloss-measured as the differencebetween the acquisitioncost and the current fair value, less any impairment loss on that investmentpreviously recognisedin the statementof comprehensiveincome is removedfrom equity and recognised in the statementof comprehensiveincome. Impairment losseson equity investments are not reversed through the statement of comprehensive income; increases in their fair value after impairment are recognised directly in the equity.

t] PENTA INVESTMENTS LIMITED

NOTES TO THE PARENT COMPA}IY SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2OO9

2. Significant Accounting policies (continued) Derecognition of financial assets A financial asset(or, where applicablea paft ofa financial assetor part ofa goup of similar financial assets)is derecognisedwhen: . The rights to receivecash flows from the assethave expired; o The Group retains the right to receive cash flows frorn the asset,but has assumedan obligation to pay them in full without material delay to a third parfy under a "pass through" arrangement;or The Group has transferredits rights to receivecash flows from the assetand either (a) has transfened substantiallyall the risks and rewards of the asset, or (b) has neither transferrednor retained substantiallyall the risks andrewards ofthe asset,but hastransferred control of the asset.

Renegotiatedloans Where possible,the Companyseeks to restructureloans rather than to Lakepossession of collateral,in casesthat collateralexists. This may involve extendingthe pa)'mentarrangements and the agreementof new loan conditions.Once the termshave been renegotiated, the loan is no longerconsidered past due. Managementcontinuously reviews renegotiatedloans to ensurethat all criteria are met and that the future paymentsare likely to occur. The loans continue to be subjectto an individual or collective impaiment assessment,calculated using the loan's original effectiveinterest rate.

Trade receivables Trade receivablesare measuredat initial recognition at fair value and subsequentlymeasured at amortisedcost using the effective interestmethod. Appropriate allowances for estimatedirrecoverable amountsare recognisedin profit and loss when there is objectiveevidence that the assetis impaired. The allowancerecognized is measuredas the differencebetween the asset'scarrying amountand the present value of future cash inflows discounted at the effective interest rate computed at initial recognition.

Borrowings Borrowings are initially recordedat fair value,being the consideratioDreceived less transactioncoss incurred. Subsequentto initial recognition,borrowings are carried at amortisedcost by using the effectiveinterest rate method. Bonowings are classifledas currentliabilities unlessthe Companyhas the right to defer settlementof the liability at least l2 monthsafter the statementof financialposition date.

Derivative financial instruments and hedging Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequentlyremeasured to their fair value at each reporting date. The resulting gain or loss is recognisedin profit or loss immediatelyunless the derivativeis designatedand effective as a hedging instrument,in which event the timing of the recognitionin profit or loss dependson the natureof the hedgerelationship.

A derivativeis presentedas a non-currentasset or a nonalrent liability if the remainingmahrrity of the instrumentis more than 12 monthsand it is not expectedto be realisedor settledwithin 12 months. Otherderivatives are oresentedas currentassets or currentliabilities.

18 PENTA INVESTMENTS LIMITED

NOTES TO THE PARENT COMPAIIY SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2OO9

2. Significant Accounting policies (continued) Derivative financial instruments and h€dging (continu€d) Hedgeaccounting .ft the inception of the hedge relationship,the Company documentsthe relationshipbetween the hedginginstrument and the hedgeditem, along with its risk managementobjectives and its strategyfor undirtaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis,the Companydocuments whether the hedginginstrument that is usedin a hedgingrelationship is highly effective in offsetting changesin the cash flows of the hedged item.

Cash flow hedges The effectiveportion of changesin the fair value of derivativesthat are designatedand qualify as cash flow hedgesare recognisedin other comprehensiveincome and accumulatedin equity. The gain or loss relating to the ineffective portion is recognisedimmediately in profit or loss, and is included in the "other gainsand losses"line of the statementofcomprehensive income.

Amounts deferred in equity are recycled to profit or loss in the periods when the hedged item is recognisedin profit or loss, in the same line of the statementof comprehensiveincome as the recognised hedged item. However, when the forecast transaction that is hedged results in the recognitionof a non-financialasset or a non-financialliability, the gainsand lossespreviously defened in equity are transferred from equity and included in the initial measurementof the cost of the assetor liability.

When a hedging instrument is sold or expires, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognisedwhen the forecasttransaction is ultimately recognisedin the statementof comprehensrve lncome.

Hedging businessrisk The Company'sindirect associateSlovalco, a.s. (direct associateof Company'ssubsidiary, ZSM, a.s.) operatesin the worldwide aluminium and melal markets and is exposed to fluctuations in metal prices that can affect its revenuesand cost of sales.The Company'smanagement has usedand intendsto use commodity-basedderivative contractsto reduce the associatedbusiness risk. The comrnoditybased derivative contractscannot be designatedas hedging instrumentsfor hedgeaccounting in accordance with current IFRS applicable standards.As a result, the Company designatedthe said derivative instrumentswhich are commodity-basedderivative contracts in respectof Slovalco'scommodity price risk as held for trading at FVTPL. Any realisedgain/losses and unrealisedgain/losses resulting from the revaluationofthese derivativesare recomisedin the statementofcomDrehensive income.

Note l8 to the financial statementsdescribe the fair value ofthese derivatives.

Trade Payablesand Accruals Trade payables are initially measured at fair value, being the invoiced amount and subsequently measuredat amortisedcost usingthe effectiveinterest method.

Liabilities arerecognised for amountsto be paid in the future for goodsand servicesreceived regardless of whetheror not they havebeen invoiced by the supplier.

T9 PENTA INVESTMENTS LIMITED

NOTES TO THE PARENT COMPANY SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2()()9

2. Significant Accounting policies (continued) Share capital Ordinaryshares issued are classiftedas equity when they are entitled to a residualinterest in the assets of the Company after deducting all liabilities. They are recorded at amounts issued less any incrementalcosts directly attributableto the issueofnew shares.

Dividend distribution Proposeddividends are recognisedas liability in the financial statementsin the periodin which they are approvedby the Company'sshareholders.

Any interim dividends approvedfor distribution to the shareholdersby the Board of Directors, are recognisedwithin equity in the period in which the decisionwas made.

Cash and Cash Equivalents The Companyconsiders all shortJermhighly liquid instrumentswith manrritiesof 3 monthsor less to be cashequivalents.

Comparatives When necessary,comparative figures havebeen adjusted to conform to the changesin the presentation nffLa nrrranf rrao. va t'rw vurrvur -/ vsr.

3. Financial risk management

3.1 Financial risk factors The Company'sactivities expose it to a varieryoffinancial risks: marketrisk (currencyrisk and interest rate risk), credit risk and liquidity risk. The Company'soverall risk managementprogramme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Company'sfinancial performance.The Company'streasury function coordinatesaccess to local and intemational markets,identifies and evaluatesfinancial risks and assistsin hedging financial risks. Generallythe Company'sfinancial risks are naturally hedgedalthough in few occasionsthe Company usesderivative financial instruments.

3.1.1Marketrisk

(a) Foreign exchangerisk Currency risk is the risk that the value of financial instruments will vary due to cbaDgesin foreign exchangerates. Foreign exchange risk ariseswhen recognisedassets and liabilities are denominated in a currency that is not the Company's functional currency. The Company is maioly exposed to foreign exchangerisk with respectto CzechKorunas, United SratesDollars and PolishZloty.

The Company'streasury function monitors the exchangerate movementsand acts accordinglyto minimize the risk. This is mainly achievedthrough nahrral hedging by establishingfinancial assets and liabilities denominatedin the sameforeign currency.In additionthe exchangerisk is monitored at the Group level where the risk is kept at acceptablelevel sincethe majority of foreign operatioDs are carried out within Central East Europe and hence any movements of currency rates of thelr functionalcunency against each other and the Euro do not give rise to significantexchange risk

20 PENTA INVEST}IENTS LIMITED

NOTES TO THE PARENT COMPANY SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2OO9

3.1 Financialrisk factors(continued) 3.1.1Marketrisk (continued) (a) Foreignexchangc risk (continued)

(i) Profile of foreign currency denominated assetsand liabilities The carryingamounts ofthe Company'sforeign currencydenominated monetary assets and monetary liabilities at the reportingdate are as follows:

2009 Czech Euro US Polish Zloty Other Total Koruna (Functional Dollars currencY) Euro Euro Euro Euro Euro Euro InYestmentsheld fiortrading - 8.088 8.088 Cashand cash cquivalents 5.678.224 15.538.370 25.044.244 - 199.234 46.460.0'72 Loansand advancesto third panres.gross 19.852.860 9',1.012.992 1t.834.962 128.700.814 Loansand advancesto related padres,gross t38.852.452 256.005.595 .12.582.614 450.'t44 42',7.891.405 '14.348.132 Tradeand other receivables 3.983.555 69.890.147 - 4',74.430 - Tradeand other payables (1.832.7s0)(170.015.858) (r.208) (44.389) (29.r43) (171.923.548) Bofiowings (252.60s.24s)(283. 178.738) (40.015.669) (s'75.'799.652) Net assets(liabilities) (86.070.904) (14.'139.404)(3.t3'1.6'1r) 33.0t2.65s 620.63s (70.314.689) Net exposure (86.070.904) - (3.137.671) 33.012.65s 620.61s (55.575.285)

2008 Czcch Euro US Slovak Other Total Koruna (Functional Dollars Koruna currency) Euro Euro Euro Euro Euro Euro Investmentsheld for trading - 85.070 - 85.070 '16.840 Cashand cashequivalents 24527.608 3.097.786 240.355 45.112.605 73.055.194 Loansand advancesto third panres,gross 6.514.858 23.91s.684 13.984.036 66.962.192 I | | .3'76.7',/ 0 Loansand advancesto related partres,gross 60.269.886 72.5t1.849 14.275.946 264.945.4185.801.010 417.804.109 Tradeand other receivables 2.846366 3.914.887 30.306 3.153.012 513.760 10.658.331 Tradeand other payables (2.160.868) (65.469.131) ('7.41r) (2s.2'70.006)(305.001) (93.212.4t7) Bonorvings (11t.250.901) (t3.694.622) (22.046.195) (st6.s62.3'1p) - (663.5s4.094) Net assets/(liabilities) (19.2s3.057) 24.2't6.4s3 6.417.031 (t61.374.019)6,086.609 (143.787.037) Net exposue (t9.2s3 .Os1) 6.471.0j7 (t6t.374.01e) 6.086,609 (r68.063.490)

2l PENTA INVESTMENTSLIMITED NOTESTO THE PARENTCOMPANY SEPARATE FINANCIAL STATEMENTS FOR THE YEAR EN'DED31 DECEMBER2()()9

3.1Financial risk factors(continued) 3.1.1Market risk (continued) (ii) Sensitivityanalysis

Thefollowing tables detail the impact that positive chalges in foreigncurrencies against their functional currencymight haveon incomeand equity of the Company.The positiveamount reflects net potential gainand negative amount net potential loss.

2009 Average Year end Change in Impact on Impact on exchange exchange exchange profit equity rate rate rate

Euro- CZK 26,445 26,465 3Vo (2.s82.r27) (2.s82.127) Euro- USD 1,3935 1,4332 5% (r56.884) (1s6.884) Euro- PLN 4,3282 4,1082 t% 360.05r 360.051

2008 Average Year end Change in Impact on Impacton exchange exchange exchange profit equity rate rate rate

Euro- CZK 26,775 26,930 5o/o (962.653) (962.6s3) Euro- USD t,4319 |,3917 6% 388.622 388.622 (b) Interest rate risk Interest rate risk is the risk that the value of financial instruments will fluctuate due to changesin market interest rates. Variable interest bearing instruments expose the Company to cash flow interest rate risk- Fixed interestbearing instruments expose the Companyto fair valueinterest rate risk.

The Companyis exposedto interestrate risk with respectto the cashplaced at banksand intra group borrowings and intra group loans granted since almost all loan payables/receivablesare due to/from subsidiary undertakings. The managementmonitors interest rate fluctuations on a continuous basis and ensuresthat borrowingsobtained and loansgranted are agreedfor competitiveinterest rates. Subsequent to the origination of the borowing received or loan granted frofi/to subsidiaries,the Company monitors interestrate risk only to the extentof interestbearing financial instrumentsentered into by the Group it belongswith third parties.The Companyis the parentof PentaInvestments Limited Group ofcompanies and the interest rate risks are monitored at Group level only to the extent that they relate to third parties.

(i) Interest profile of assetsand liabilities At the reporting date the interest rate profile of interest-bearingfinancial instruments was as follows: Receivables Pavables Receivables Payables 2009 2009 2008 2008 Cashand cash equivalents - variable 46.460.072 73.055.194 Variablerate instruments 20.6ss.236 185.885.946 Fixed rate instruments 556.592.219 555.tM.4t6 s29.t80.879 477.669.t48 603.052.29r 575.799.652 602.236.073 663.554.094

22 PENTA INVESTMENTS LIMITED NOTES TO THE PARENT COMPAT{Y SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 3I DECEMBER 2OO9

3.1 Financial risk factors (continued) 3.1.1Market risk (continued) (ii) Sensitivity analYsis The tablei below show the changein the net profit and equity of the Company due to reasonable possiblechange in interestrates of the major currencies.The analysisassumes that all other variables, in particular foreign currency rates remain constant and takes into account the effect of the timing that the borrowingswere provided.

Equity and Equity and Profit or Loss Profit or Loss 2009 2008 Euro Euro -0,5olofor all currencies (129.024) 223.455 +0,5olofor all currencies 129.024 (223.4ss)

3.1.2Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company.Credit risk arisesfrom cash and cash equivalents,trade receivables,loan advancesand guaranteesgiven.

The credit risk on cashand cashequivalents is limited becausethe Companydeals only with high credir quality fi nancialinstitutions.

Loansprovided to relatedparties and othercounterparties are not usually secured.The Companygenerally grantsshort term loans to various counterpartiesmainly to fund their investmentprojects. In additionthe Company grants loans to related parties to fund their investment projects and operations. The Company has policies of granting project funding loans for projects having high probability of successthat will producepositive renrms. The Companymonitors regularly the credit risk by reviewingpayment history of the loans, project financial analysis and borrowers' underlying assets and liabilities and financial projections.

(i) Credit quality ofreceivables The loans provided to related parties and counterparties are not rated by the Company. However the Company monitors the financial performance of the clients and 57,58% (2008: 7 |.43%o)are fully performingof which 7 |,02o/oQ008: 6l%) arerepayable during 2010.

(ii) Concentrationofcredit risk Concentrationof credit risk arisesfrom financial instrumentsthat have similar characteristicsand are affected similarly by changesin economicconditions. The Companyconsiders receivables belonging to the samebusiness sector and accountingfor more than 5%oof the total receivables,as receivablesgiving rise to a concentrationofcredit risk. The following tableprovides details of the concenhationofcredit risk with respectto loan advances.

z5 PENTA INVESTMENTSLIMITED NOTES TO THE PARENT COMPAI{Y SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED31 DECEMBER2OO9

3.1 Financial risk factors (continued) 3.1.2Credit risk (continued)

Loan advancesper industry 2009 2008 Euro Euro Realestate activities 158.317.389 185.093.182 Financialservices 82.64t.574 42.604.378 Telecommunications 74.004.308 60.783.6s1 General trading 36.433.810 Laboratories 34.831.904 8.289.696 Healthcare 26.596.s91 8.861.730 Electricity andpower generation 28.265.3t8 43.782.580 Manufacturing of helicopters and aircraft equipment 19.275.468 3.430.759 Window manufacturing 18.091.396 2.502.966 Steel wire manufacturing 16.070.748 Betting 10.289.034 21.035.538 Pet food 11.753.035 Ceramic tile manufacturer 9.872.262 Clothing 9.703.859 Individuals 7.95t.237 4.537.190 Meat processingand distribution 5.089.270 76.993.007 Pharmacybusiness 4.599.860 19.007.893 Manufacturing 2.131.861 CableTV 33.816 36.999.381 Waterutilities 8.981.624 Holding companies 229.2t2 2.683.739 Other 410.267 3.593.565 556.592.219 529.180.879

(iii) Maximum credit exposure Except as detailed in the table below the carrying amouot of financial assetsrecorded in the financial statementsnet of impairmentlosses, represents the Company'smaximum exposure to credit risk.

Financial assetsand other credit exposures Maximumcredit exposure 2009 2008 Euro Euro Cashat bank 46.460.072 73.055.194 Derivative financial instruments 13.656.000 57.6s6.532 Loan commitnents 310.194.879 t57.039.241 Guaranteesprovided to group companiesfor obtainingfinancing 34r.279.730 260.586.556 Loansgranted to clients 128.700.8t4 1t3.671.237 Loansgranted to relatedcompanies 427.891.405 415.509.642 Tradeand otherreceivables 74.348_132 10.658.331 Total 1.342.531.032 1.088.176.733 knpairmentlosses (186.799.01l) (137.128.092\ 1.155.732.021 951.048.64t

24 PENTA IIIIVESTMENTS LIMITED NOTES TO TIIE PARENT COMPANY SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2OO9

3.1 Financial risk factors (continued) 3.1.3Liquiditv risk -iq.'idity.i.ki.th"riskthatariseswhenthematurityofassetsandIiabilitiesdoesnotmatch.1he .".pon.ibility for liquidity risk managementrests with the Board of Directors which has built an appropriate iiquidiry- rislc management framework and monitors rolling cash flow forecasts of the io.p"ny'. funding and liquidity managementrequirements. However the Company's liabilities are mostiyborrowings obtained from its subsidiariesand henceliquidity risk is minimal. Shouldthe Company not bi in a positionto repayany inter-groupliabilities otherarrangements would be madeby the Group.

The following tablesprovide a summaryof the Company'sremaining contractual maturity for its financial liabilities. The tableshave been drawn up basedon the undiscountedcash flows of financial liabilities and on the earliestdate on which the Companycan be requiredto pay. The tables include both interestand principal cash flows. The adjustment column representsthe possible fuhrre cash flows attributable to the instrument included in the maturity analysis which are not included in the carrying amount ofthe financial liabilities on the statementoffinancial position.

Less than 6 montbs Gr2 t:2 2-5 More than months years years 5 years Adjustment Total demand Euro Euro Euro Euro Euro Euro Euro Bono\ings 223.626.07-1 246.000.119 17.72238'1 r01.311.973 26.229.855 (39.091.353)5't5.799.652 Tlade and other payables t7 |.923.548 - l'71.923548 Deri!.ativefinancials rnstrunent 380.564 380.566 289.254 1.050.3E4 224.006.635 4r8.304.833 1E.011.64rr01.311.973 26.229.855 (39091.353) 748.7',73.s84

2008 Less than 6 months 6-12 l:2 2-5 More than months years years 5 years Adjustment Total dematrd Euro Euro Euro Euro Euro Euro Euro Borrowings 3r3.128.1II 248.513.819 96.320.561 46.464.944 (40.873.341)663.ss4.094 Tradeand other pa)€bles 93.2t2.411 - 93.212417 3r3.128.nr 341.726236 96.3?0.56t 46.464.944 (40.873.341)',756,766,511

3.2 Fair values Financialinstnrments comprise of financial assetsand financial liabilities. Financialassets mainly consist of bank balances,trade and loans receivablesand derivatives.Financial liabilities mainly consist of borrowings,trade and other creditorsand accrualsand derivatives. The fair valuesof the financial assetsand financial liabilities approximatetheir carryingamounts as at the statementof flrnancialposition date. The fair values of financial assetsand liabilities are determinedby using acceptedpricing modelsmostly basedon discountedcash flow analysisand assumptionsexist in the market.

3.3 Capital risk management The Company managesits capital to ensurethat it will be able to continue as a going concem while maximizing the retum to the shareholdersthough the optimization ofthe debt and equity balance.

l) PENTA INVESTMENTS LIMITED

NOTES TO THE PARENT COMPA],'IY SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 3I DECEMBER 2OO9

4. Critical accounting estimates,judgments and sourcesof estimation uncertainty In the applicationof the Company'saccounting policies managementis requiredto make judgments, estimatesand assumptionsabout the carrying amountsof assetsand liabilities that are not readily apparentftom other sources.The estimatesand assumptionsare basedon historical experienceand other factors that are consideredrelevant. Actual results might differ from these estimates. The following are the critical judgmentsmade by managementin the processof applying accounting policies as well as the key sourcesof estimationuncertainty that have significant risk of causing materialadjustment to the carryingamounts ofthe assetsand liabilities.

(a) Income taxes Significantjudgment is requiredin determiningthe provisionfor incometaxes. There are transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business.The Companyrecognises liabilities for anticipatedtax audit issuesbased on estimatesof whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisionsin the periodin which suchdetermination is made.

(b) Impairment losseson loans and advances The Companyreviews its receivablesto assesswhether there is an impairmentrisk ln determining whether impairment losses should be reported in the financial statements, the Company exercises judgrnentas to whetherthere is any observabledata indicating that thereis a decreasein the estimated future cash flows from accountsreceivable. Accordingly, an allowance for impairment is made where there is an identified loss event or condition which based on previous experienceand estimates providesevidence for reductionofcash inflows expectedto be recoveredffom the receivable-

In addition the Company reviews problematic loan receivables at each reporting date to assesswhether an allowance for impairment should be recognised.In particular, judgment by managementis required in the estimation of the amount and timing of future cash flows when determining the level of allowancerequired. Such estimatesare basedon assumptionsabout various factorsand actualresults may differ resulting in fi.rturechanges to the allowance.

(c) Assessmentof Impairment risk of investments The Company holds investmentsin unquoted securities in Central East Europe and exercisesjudgment to determine whether such inveshnents fie impaired. ln making such judp.ent the Company among other factors evaluates the financial health and near-term business outlook for the investee including factors such as industry and sector performance, changesin technotogy and operational and financing cashflows.

(d) Fair value of financial instruments Where the fair values of financial instruments (including derivatives) recorded at the statement of financial position cannot be derived from quoted prices in active markets, they are determined using a variety of yaluation techniques that are commonly used by market practitioners. The input of these models is taken from observablemarkets where possible,but where this is not feasible,a degreeof judgment is required in establishing fair values.

26 PENTA INVESTMENTSLIMITED NOTESTO THE PARENTCOMPANY SEPARATEFINANCIAL STATEMENTS FORTHE YEAR ENDED31 DECEMBER2OO9

5. Operating revenue 2009 2008 Euro Euro Dividend income 86s.969.079 213.726.540 Profit from disposalofequify and other securities 3.355.873 15.476.488 Interest income from loans and advances 37.933.415 34.240.949 Net lossfrom assignmentofreceivables (104.810) (80.986) 907.153.557 263.362.991

Operatingcosts 2009 2008 Euro Euro lnterestexpense 51.255.648 48.792.183 Managementfees s.292.681 Advisory costs 2.239.282 701.240 s3.494.930 54.786.104

6. Other exp€nses,net 2009 2008 Euro Euro Impairmentloss recognised on receivables(note l9) 66.965.456 99.024.213 Impairmentloss on investments(notes 15 & 16) 266.347.379 26.904.383 Co-investment settlement fee (note 24) 19.950.000 Other (income)/expenses,net (831.008) 2.897.585 352.431.827 128.826.181

Other income relates to a reversal of a provision previously raised (2008: provision of Euro 2-897.181incurred) in respectof an additional amount of Euro 2.897.585advanced to the subsidiaryMobile EntertainmentCompany Sp. Z o.o. in 2009 in orderto cover its debts.

n Other gains and losses,net 2009 2008 Euro Euro Gain on expiredoptions, net - t.477.274 Unrealisedrevaluation loss on InterestRate Swap (rRS) (note 18 (iD) (1.050.384) Realisedloss on IRS for the year (note l8(ii)) (410.939) Realisedand unrealised (loss)/gain on Commodity swap (note 18 (i)) (16.210.808) 52.306.219 (t7.672.r31) 53.783.493

8. Financialexpenses, net 2009 2008 Euro Euro Bank Interestincome 228.255 789.866 Exchangegains, net 356.915 585.170 789.866 Exchangeloss , net 12.245.971 SWAP terminationfees (note i) 1.051.000 Bank chargesand otherfinancial expenses |.277.627 2.439.307 (t.277.627) (1s.736.278) Net financial expenses (692.4s7) (14.946.412) (i) This representsthe termination fee paid by the Company to teminate the interest rate swap, which was due for terminationon 17 October 201l. This interestrate swap was initially enteredinto to hedgethe cashflow risk arising from fluch-rationsofinterest ratesrelating to a bankbonowing obtainedduring 2007.

27 PENTAINVESTMENTS LIMITED NOTESTO THE PARENTCOMPAI.IY SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED31 DECEMBER2OO9

9. Profit before taxation 2009 2008 Euro Euro The profit beforetaxation is statedafter charging:

Staff costs 58.802.527 14.43r.872 Auditors'remuneration 357.932 550.707 Auditors'remuneration - prior year 206.372 Impairmentof receivables(note l9) 66.965.456 99.024.213 Impairmentof investments(note l6(v)) 266.347.379 25.601.968 Depreciationcharge (note 11) 790.698 692.332 Amortisationof intangibles(note 12) 290.272 157.585

Staff costs 2009 2008 Euro Euro Staffcostsanalysed as follows: Wagesand salaries 7.955.530 7.450.201 Key managementpersonnel costs 1.278.834 854.256 Profit sharing,bonuses and othershort term costs 47.3t9.238 4.19r.324 Socialsecurilr costs 2.248.92s 1.936.091 s8.802.527 t4.431.872

10. Taxation 2009 2008 Euro Euro The tax charge for the year consistsot Corporationtax charge(i) r.346.970 239.160 Deferred tax credit (ii) (s.000.000) (3.653.030) 239.t60

(i) Corporation tax

Corporation Corporation Tax Total Total tax- tar - rvithheld 2009 2008 Cyprus Branches abroad Euro Euro Euro Euro Euro As of I January r.404 (204.9s2) (203.s48) t.4M Taxationarising upon mergerofbranches (Nore17) t9.0t9 Corporationtax charge t.282.874 t.346.970 239.t60 Tax refunded/ (paid) 97.60r 33.505 (463.131) Balance3l December t.404 1.1'75.523 1.t76.92'1 (203_54E)

28 PENTA II.IVESTMENTSLIMITED NOTESTO THE PARENTCOMPATIY SEPARATE FINANCIAL STATEMENTS FORTHE YEAR ENDED 31 DECEMBER2OO9

10. Taxation(continued) (i) Corporation tax (continued) 2009 2008 Euro Euro Profit subjectto domesticcorporation tax of 10% 464.610.080 100.837.115 Profit subjectto corporationtax of 190lo (21.233.968) (r2.s67.728) Profit subject to corporation tax of 200lo(where tax baseis l5oloofcosts) (41.987.ss1) Profit subjectto corporationtax of 21olo (5.083.681) Profit subject to corporation tax of 25olo (r.169.979) Profit before tax 400.2r8.582 83.185.706

Corporationtax thereonat the applicablerates (10% -25%\ 45.346.453 5.217.556 Tax effect ofincome not taxable (86.9s0.987) (28.273.404) Tax effect of expensesthat are not deductible in determining taxable profi t 41.320.374 8.837.203 Tax effect ofunutilised lossesofbranches 2.397.429 2.387.87| Tax effect of (utilised)/unutilisedlosses (830.39s) rt.983.267 Witholding tax on incomefrom abroad 64.097 86.66',1 Tax exoense 1.346.97l 239.160

In accordancewith the Income Tax Law of 2002 which came into effect on I January 2003, the Companyis subjectto corporationtax at the rate of l0o%on its total taxableprofits. In caseof tax losses,these can be canied forward indefinitely to be offset againstprofits of subsequentyears.

Permanent establishmentsabroad In accordancewith the provisions of the Cyprus Income Tax Law, any profits attributed to permanent establishmentsabroad (definition includes foreign branches) of the company are exempt from income tax in Clprus subject to certain conditions. In case the branches suffer tax losses,those losses can be claimedagainst the taxableprofits of the Cypriot headoffice, however, there is a recapture nrle under which when the foreign branches subsequently become profitable, an amount up to the tax lossespreviously claimed in Cyprus will be added to the taxableprofits ofthe headoffice andbe taxedin Cyprus. The profits attributed to the branches of the company which are registered in foreign jwisdictions, are subjectto taxationin thoseforeign jurisdictions.

Specialcontribution to defence As from I January 2003, defence conkibution on the taxable profits of the Company is abolished.Under certain conditionsinterest income and foreign dividendsreceived may be subjectto defencecontribution at the ratesof l0oloand 15% respectively. Howeverinterest eamed, arising from the ordinaryactiyities of the business,is not subjectto specialdefence contribution. In this respect,the Company'sinterest income which arises from its operatingactivities is not subjectto specialdefence conhibution.

(ii) Deferredtaxation 2009 2008 Taxlosses Euro Euro Debitbalance on I January Creditcharge in profit andloss for theyear 5.000.000 Debitbalance on 3l December 5.000.000

29 PENTA INVESTMENTSLIMITED NOTES TO THE PARENT COMPANY SEPARATEFINANCIAL STATEMENTS FOR THE YEAR ENDED31 DECEMBER2OO9

11. Property,plant and equipment

Furlliture, Computer Motor Total fixtures& Hardware Vehicles fittings & office equipment Euro Euro Euro Euro Cost I January2008 69.523 35.996 62.r56 t67.675 Arising on mergerwith subsidiaries 1.929.t05 1.687.503 3.616.608 Additions 1.260.650 24.80'1 201.725 1.487.182 Disposals (194.138) (169.358) (363-496) I January2009 3.065.140 60.803 |;t82.026 4.90'.1.969 Additions 8',75;7 53 346.963 725.421 r.948.t37 Disposals (9',72.282) Q2.8s0) (642.028) ( r.637.160) 3l December2009 2.968.611 384.916 1.865.419 s.2r8.946 Depreciation I January2008 16.650 t'|.475 27.tt7 61.242 Arising on mergerwith subsidiaries 843.874 856.071 1.699.945 Chargefor theyear 301,.276 9.836 381.220 692.332 Disposals (17.911) (r92.309) Qr0.220) I January2009 1.143.889 2't.31| t.0'12.099 2.243.299 '73.67 '190.698 Chargefor theyear | 26'1.19'1 449.830 Disposal (2.r2E) (40.9'tt) (138.s42) (l El.64l ) 3l December2009 1.2t5.432 253.537 1.383.387 2-852.356

NetBook Yalue 3l December2009 t;/ 53.r79 t31.379 482.032 2.366.s90 '109.92'1 3l December2008 1.92r.251 33.492 2-664-6'10

30 PENTA INVESTMENTSLIMITED NOTESTO THE PARENTCOMPANY SEPARATEFINANCIAL STATEMENTS FOR THE YEAR ENDED31 DECEMBER2OO9

12. Intangibleassets Computer Software Right of Total Software under flight hours construction (iD (i) Euro Euro Euro Euro Cost I January2008 29.232 84.153 r 13.385 Arising on mergerwith subsidiaries 474.t23 4'74.123 Additions 22.603 164.400 1.032.708 1.219.7tl Disposals (26.r7s) (26.17s) I January2009 499.783 248.553 1.032;708 1.781.044 Additions 104.002 461.430 565.432 Disposals 3l December2009 603.78s 709.983 t.032.'708 2.346.476 Amortisation 0l January2008 3.309 3.309 Arising on mergerwith subsidiaries 156.669 156.669 Charge for the year 63.809 7.717 86.059 157.585 Disposals (20.345) (20.34s) I January 2009 203.442 7.7 t'| 86.059 29't.218 Charge for the year 83.730 206.542 290.272 3l December2009 28'1.172 7.717 292,60r 58',7.490

Net book value 3l December2009 316.613 740.r07 1.758.986 31 December2008 296.341 240.836 946.649 1.483.826

(D Software under construction Softwareunder constructionrepresents costs incurred for the installationof new application software relating to exchange of knowledge and information management.The software is currentlyunder construction and testing

(iD Right of flight hours. The Companyentered into an agreementon 25 July 2008, whereby it purchaseda 12.5% interest in an aircraft. This aircraft is used exclusively for the transportationof senior executives, in the carrying out their duties for the Company. In substance, the Company acquiredthe right ofuse of the aircraft for tansportationand allocatedspecified flight hours.

JI PENTAINVESTMENTS LIMITED NOTESTO THE PARENTCOMPANY SEPARATE FINANCIAL STATEMENTS FOR THE YEAR EI\'DED3T DECEMBER 2()O

13. Investmentsheld to maturity 2009 2008 Euro Euro At 1 January |.788.444 Additions Redeemed (1.788.4M) At 31 December Theserepresent investments in bondsraised by thesubsidiary, Privatbanka, a.s. and were acquiredduring 2007. These bonds were redeemed during 2008.

14. Investmentsheld for tradino 2009 2008 Euro Euro At 1 January 85.070 5.2t4.t82 Additions(note i) 1.7t2.125 289 Disposals(note i) (1.789.107) (5.129.401) At 31 December 8.088 85.070

(i) Thesemainly representinvestments in bondsacquired and disposedduring 2009. Out ofthe total bonds acquired538 bondsin the amountof Euro 1.789.107were firlly disposedduring 2009 for a considerationof Euro 1.787.574,incurring a lossofEuro 1.533. The carrying amount of the investmentsas of 3l December2009, approximatetheir fair value which was determined by reference to current market transactions. 15. Investmentsheld for sale 2009 2008 Euro Euro At 1 January 90f.273 12.934.535 Disposals (901..273) (t2.934.s3s) Reclassifiedfrom investments in subsidiaries(note 16) 1.545.742 2.203.688 Impairment (ii) (1.302.41s) At 31 December 1.545.742 90t.273

Countryof ActiYities 7o holding Carrying Carrying incorporation amount amount 2009 200E Euro Euro Kotapera,a.s. CzechRepublic Holding company 100% 901.2'13 03 Investa.s (i) SlovakRepublic General Trading t00% 1.545;142 1.545.742 90t.2'13 (D 03 Invest.a.s. The Companytook a decisionto disposeits 100% shareholdinginterest in 03 Invest, a.s. during 2009 and committed to a plan to sell the subsidiary within one year. An active progranme to locate a buyer has been initiated during 2009 and the investmenthas been reclassifiedas held for sale.On 17 March 2010, the Companysigned a formal saleagreement to disposeits 100%interest in 03 Invest,a.s. (note 27) for a considerationof Euro 1.545.742.

(iDImpairment These relate to provisions for impairments of investments which operate in the telecommunicationsindustry in Poland.The investmentwas disposedofduring 2009 through subsidiariesofPenta lrvestmentsLimited. The Companyrecognised an adequateprovision in 2008by estimatingthe recoverableamount tbrough the expectedsales proceeds. PENTA INVESTMENTSLIMITED NOTESTO THE PARENTCOMPAT{Y SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED31 DECEMBER2()()9

16. Investmentsin subsidiaries Current -Availablefor saleinYestments 2009 2008 Euro Euro At I January 2.384.906 267.955 Reclassifiedfrom long term investmentsduring the year 2.844.288 Additionsduring the year 101.521 Writeoffand provisions (828.8s8) Derecognitionupon completion of liquidation Q.379.476) At 31 December s.430 2.384.906

These represent investmentsin subsidiary undertakings held by the Company at the statement oe finaniial position datewhich are under liquidation. The investmentsare accountedfor as ^iuituUt" foi sale. in accordancewith IAS 39: "Financial instruments:Recognition and Measurement".

Initially these investments are recognised at their cafrying amount at the date of entering liquidaiion and subsequentlytested ior impairment by evaluating the recoverable amount of the said investments.

Non-current investmentsin subsidiaries 2009 2008 Euro Euro As of I January 407.857.354 32r.007.s72 Additions- acquisitionsand new establishments(i) 432.303.853 43.168.002 Additions- capitalcontributions (ii) 205.972.182 130.019.342 Disposals(iii) (s.27s.437)- (56.s16.476) Reclassifiedto short term investments(iv) Q.844.288) Reclassifiedto investmentsheld for sale(note 15) (r.s4s.742) (2.203.688) Impairment (v) (266.341.379) (24.773.n0) At 31 December 772.964.83r 407.8s7 .3s4

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E-E PENTA INVESTMENTSLIMITED NOTESTO THE PARENTCOMPAI{Y SEPARATEFINANCIAL STATEMENTS FOR THE YEAR ENDED31 DECEMBER2OO9

16. Investmentsin subsidiaries(continued)

(i-a) Acquisitionsduring the year 2009 During the yearthe Companyhas made the following acquisitionsand new establishmentsin subsidiaryundertakings :

f,ntity Acquisition(A) Countryof Percentage Euro Establishment@) incorporation acquired Dr Max HoldingB.V E The Netherlands t00% 2t.967.500 EnergieVoda, a.s. A CzechReoublic 100% 7s.s86 CeskaLekama Holding, a.s (FormerLarkfield a.s) E CzechRepublic 100yo 69.978 ForhmaEntertainment GroupB.V. E The Netherlands 100% 64.644.000 Keladone,a.s A CzechRepublic \00% 69.979 GlebiHoldings Plc A Cyprus t00% r.699.s70 PM Zbrojniky,a.s. A Slovak Republic 100% 43'1.240 Mediworx Software Solutionsa.s + A SlovakRepublic t00% 176.000 PointAkciova Spolocnost Kosice* A SlovakRepublic 100% 85.000 VSZKgokor, a.s. x A SlovakRepublic t00% 3.606.000 GambellaHoldings Ltd * A C1prus 1000/0 151.028.000 PentaEnergy Acquisition Limited* A Cyprus t00yo 188.445-000 432.303.853 * Acquiredfrom its subsidiary,Gratio Holding Limited.

38 PENTA INVESTNIENTS LIMITED NOTES TO THE PARENT COMPANY SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2OO9

16. Investmentsin subsidiaries(continued)

(i-b) Acquisitionsduring theyeat 2008 Duiing the year th; Companyhas madethe following acquisitionsand new establishmentsin subsidiaryundertakings:

Entity Acquisition (A) Country of Percentage Euro Establishment(E) incorporation acquired

DebreceniHus Hungary l00o/o 26.147.581 DendaBeheer B.V. E TheNetherlands I 00% 25.829 FortunorTrading Limited E Clpms l00o/o 2.070 Gratio HoldingsLimited E Cyprus 100% 3.070 MecomGroup, s.r.o SlovakRepublic 100% 10.773.525 Kotapera,a.s. SlovakRepublic 100% 901.273 ObonaTrading Limited E Cyprus l00o/o 3.780 PentaInvestments Limited, o.s. E CzechRepublic 100% 803.148 PIL Trade,a.s. E SlovakRepublic 100% 27.s00 Port Mall Management, a.s. E SlovakRepublic 100% 1.000.000. PPClnvestments, a.s. A SlovakRepublic t00% 27.500 Privatbanta,a.s. A SlovakRepublic 6.90% r .053.246 RemoboHoldings Ltd E Cyprus r00% l SidonioHoldings Ltd E Cyprus r00yo 1.000 Slovensh-iInvesticnf Holding,s.r.o. A SlovakRepublic 0.80% 2.314.829 TredarInvestments Limited A Cypms 100% 2.070 Vinipreg,a.s. A SlovakRepublic \00% 80.580 WalagoHoldings Limited A Cyprus 100% 1.000 43.168.002

The amountsabove represent acquisition costs or contributedcapital upon establishmentof new subsidiaries.

(ii) Contributionsto share capital in existingsubsidiaries The capital contributionsmade by the Companyto its existingsubsidiaries are asfollows: Entity Country of 2009 2008 incorporation Euro Euro AbrastorHolding Limited Clprus 1.000 B Four, a.s. SlovakRepublic 14.871.305 DendaBeheer B.V. The Netherlands 320.297 DigitalPark Einsteinova, a.s. SlovakRepublic 4.446.146 EquinoxInvestments B.V. The Netherlands 8.453.502 Zabka,a.s. (former Catasta,a.s.) CzechRepublic 6.071.289 3.205.7 04 Office Park, s.r.o. SlovakRepublic 1.077.947 The Port, a.s.(former Uphill, a.s.) SlovakRepublic 5.l3 6.81s Bory Mall, a.s.(former Port Mall, a.s.) SlovakRepublic 5.000.000

39 PENTA INVESTMENTSLIMITED NOTESTO THE PARENTCOMPANY SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED31 DECEMBER2OO9

16, Investmentsin subsidiaries(continued) Entity Country of incorporation 2009 2008 continuesfrom pervious page Euro Euro Kure Limited SlovakRepublic 4.958.300 4.163.870 RotortechAero Composites Limited United Kingdom 1.555.556 1.132 RotortechMeadows Limited. United Kingdom 1.456.389 1.132 Centrade,a.s. Slovak Republic 13.925.800 7.859.348 ClemencyHoldings Limited Cyprus 104.000 CyfocaHoldings Public Co Ltd Cyprus 43.626.125 24.'185 CeskaLekama Holding a.s (FormerLarkfield a.s) Czech Republic 7.7U.708 EquinoxInvestments B.V. The Netherlands 17.000.000 Mecom Group,s.r.o Slovak Republic 70.967.465 MobilKom, a.s. Czech Republic 24.033.479 NOVOKER, a.s SlovakRepublic 2.915.633 PXP Corp., s.r.o.v likvid6cii Slovak Republic 9.86s Port Mall Management,a.s. Slovak Republic i00.000 PFSE,a.s. CzechRepublic 28.918 RemodoHoldings Limited Cyprus t.739 FortunorTrading Limited Cyprus 1.201.000 SaloriHolding B.V. The Netherlands 3.680.8s1 24.4gg.01; SalvisReal Estate a.s CzechRepublic 1.969.279 Sunsize,a.s. SlovakRepublic 4.660.000 640.000 SandwedgeB.V. The Netherlands 9.426.882 TesVsetin, s.r.o (formerly Kelisia a.s.) Czech Republic 37.376 r5.096.61; WedgesandB.V. The Netherlands 23.77t .072 3.600 WFSE,a.s. SlovakRepublic 32.953_ 03 Invest,a.s. SlovakRepublic t.228.t78 ZAO "PentaInvestrrents" Russia 662.456 205.972.182 130.019.342 (iii-a) Disposals made in 2009 During the year the Company has made the following disposals of subsidiary undertakings: Entity Country of Percentage Euro incorporation disposerVdecreased Disposals DendaBeheer B.V The Netherlands 5% 900 Kotapera,a.s. Slovak Republic 100% PM Zbrojniky,a.s. SlovakRepublic 100% 437.240 RotortechAero Composites t00% Limited United Kingdom 1.556.689 EnergieVoda, a.s. CzechRepublic 100% 75.586 Novokera.s SlovakRepublic 100% 3.t06.247 WaterfallHolding B.V The Netherlands 100% 90.000 WedgesandB.V. The Netherlands 5% 1.300 TesVsetin, s.r.o (formerly Kelisia a.s.) CzechRepublic 20% 7.415 5.275.437

40 PEMA INVESTMENTS LIMITED

NOTES TO TIIE PARENT COMPANY SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 3T DECEMBER 2OO9

16. Investments in subsidiaries(continued) (iii-b)' Disposalsmade in / decreasein Share Capital 2008 During the year the Company has made the following disposals and/or decreasesin share capial in subsidiaryundertakings:

Entity Country of Percentage Euro incorporation disposed

Disposals Weastra,a.s. CzechRepublic 100% 72.',141 Kelisia,a.s. CzechRepublic 20Yo 3.033.872 Bintorio HoldingsLtd Cyprus 100% I CerezianHoldings Ltd Cyprus 100% r.709 DebreceniHus Hungary 100% 26.147.581 +I00o/o PentaInvestments Limited, a.s. CzechRepublic 803.148 PM Zbrojniky, a.s. SlovakRepublic 100% 5.085.032 PPCEnergy, a.s. (formerly Arcane,a.s.) SlovakRepublic 100% 27.500 Pentalnvestments, s,r.o. SlovakRepublic * 100% 3.483.687 SandwedgeB.V. Netherlands 5% 1.300 Decreasein Share Capital Bory Mall, a.s.(former Port Mall, a.s.) SlovakRepublic 29.493 FAJNE, a.s. (former IDAX Holding, a.s.) SlovakRepublic 1.036.700 Oakfield,a.s. CzechRepublic 16.793.712 56.516.476

xAs per note 17 - "Merger with subsidiaries",the operationsof PentaInvestments, s.r.o. and PentaInvestments Lirnited, a.s.were mergedwith PentaInvestments Limited during2008.

(iv) Reclassified to short term- available for sale investments

Entity Interest held 2009 2008 Euro Euro Dovera,a.s. v likvidacii (under liquidation) 100% LPV B.V. 100% 2.010.000 SafinvestLimited 100% 833.663 Malta Entertainment Holding Limited 50% 625 2.844.288

4l PENTA IN\'ESTMENTSLIMITED NOTESTO THE PARENTCOMPANY SEPARATE FINANCIAL STATEMENTS FOR TIIE YEAR ENDED3I DECEMBER2OO9

16. Investmentsin subsidiaries(continued) (v) Impairednon-currentinvestments The investmentsare stated at costless impairment provisions made. The followinginvestments have beenassessed as being impaired and provision was recogrised against their cost: 2009 Entity name Cost Provisions Transfer Carrying on merger Amount At Chargefor At 1,1.2008 the year 31.12.09 Euro Euro Euro Euro Euro Euro (a) Mobilkom, a.s. 29.s05.49riQ4.9't9.8s0) -r (24.e79.850)i 4.525.641 (b) GratioHoldings Ltd 89.143.098i - (82.854.111)i(82.8s4.111) i 6.288.987 (c) Sunsize,a.s. 6.502.500i (550.770) (3.317.47s)t(3.868.245)i 2.634.255 (d) GambellaHoldings Limited 151.028.000i - (4.091.687)i(4.091.687) i t46-936.313 (e) Kwe Limited 9.122.17ri - @;708.795)[email protected]) i 4.4t3.316 (0 PPCEnergy Group, a.s. r7.806-268i - (t0.749700)i OO.7497OO)| 7.056.568 (0 Penta Energy AcquisitionsLimited 188.445.000 - (r4r.8'7s.98't) i (r41.875.987) 46.569.013 (9, CyfocaHoldings Public Co Ltd 43.652.6t9 - (18.106.s70)i(18.t06.s70) 25.546.M9 Cenhade,a.s. 21.940.3'tI - (326.422\i (326.422\ 21.6t3.949 DendaBeheer B.V. 34s.226 - (316.632)r (316.632) 28.594 SlovenskaTeplarenska S.H.P Limited (previouslyPenta Asset ManagementLimited) 450.4501 (439.97s) -i (439.975\ t0.475 5s7.94r.r94(2s.97 0.s9s) (266.347.37 9) Q92.3 r'1.97 4) - 265-623.220 2008 Entity name Provisions Transferon Carrying merger Amount At Charge for At 1,1.2007 the year 31.12.08 Euro Euro Euro Euro Euro Euro Mobilkom, a.s. 29.50s.49ti(1.r97.485) (23.782.3611,Q4.979.8s0)i 4.525.640 SlovenskaTeplarenska S.H.P Limited i (previouslyPenta Asset i asnasnl - raro,-...ozsri ,-, rarqqzsri ManagementLimited) \ i .,-...,-,i t0.4'75 Sunsize,a.s. I R4t{nO: - /5{n ?7O\: r55O77O\: t.29t.730 PentaInvestments s.r.o. :: (SlovakRepublic) t3.5'11.358i(10.093.671) -i -i (3.483.687) 4s.3'1s.',199(11.291.156) (24.773.rr0) (2s.9',10.s9s) (3.483.687) 5.827.84s

(a) Mobilkom, a.s. The investmenttogether with loansadvanced to the subsidiary,were testedfor impairmentbased on value in use calculations.The value in use calculation was based on a recent financial budget approved by managementfor the next five years, and then extrapolated the results and concluded that the openingprovision recognizedduring previousyears was adequate.The rate used to discountthe forecastcash flows is 15,8oloper annum.Management included in its projectionsrevenue growth of 160%per annum. Based on the impairment test performed, the Company did not recognize any fifther impairment Drovisions.

42 PENTA INVESTMENTS LIMITED NOTES TO THE PARENT COMPANY SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2OO9

16. Investments in subsidiaries(continued) The accumulatedimpairment loss was allocated and recognised against the carrying amount of the following assets: Underlying asset 2009 2008 Euro Euro Investment- Mobilkom, a.s. 24.979.851 24.979.851 Loan receivables- Mobilkom, a.s. 29.909.681 29.909.681 Loan receivables- Klerem, a.s. 5.619.4t4 s.619.414 60.508.946 60.508.946

(b) Gratio Holdings Limited With respectto the impairmenttest carried out for Gratio Holdings Limited (Gratio) the Company estimated Gratio's recoverable amount using the amount that the Company would obtain at the end of the reporting period from the disposal of the assetsheld and the settlementof the liabilities due by Gratio in arms length transactionswith third parties.A year end audited statementof assetsand liabilities was used to establishthe recoverable amount.An impairmentprovision of Euro 82.919.946was recognizedduring the year. Gratio Holdings Limited sufferedsignificant impairment since almost all its equity was distributed during 2009 and disposedall its underlyingassets. (c) Sunsize,a.s. With respectto the impairmenttest carriedout for Sunsize,a.s. the Companyassess the total exposnreof funds contributedto Sunsize,a.s. of Euro 8.252.807which consistsof a loan receivableamounting to Euro 1.750.307and equity contributionsof Euro 6.502.500.The recoverableamount of Sunsize,a.s. was calculatedusing the fair value less costs to sell method by examining the real estate assetsheld by the subsidiary. The Company maintains an impairmentprovision of Euro5.618.552 (2008: Euro 5.076.318) as of 3l December2009. (d) Gambella Holdings Limited The Companycalculated the subsidiary'srecoverable amount using the auditedstatement of assetsand liabilities of the subsidiary and concluded that the carrying amount of the investmentwas higherthan its recoverableamount by Euro 4.09I.682. (e) Kure Limited The subsidiary incurred losses during the year and managementassessed that the total exposureof investedfunds arnountedto Euro 10.633.1I 1. Theseconsist of an inyestmentin sharecapital of Ewo 9.122.171andloans receivable ofEuro 1.510.940.Based on recentbid offers, managementrecognised a provision of Euro 4.708.795against the inveshnentand Euro 1.510.940against the loan receivable. 0) PPC Energt Group, a.s. and Penta Energy Acquisitions Limited The Company has, through its subsidiariesabove, invested in the electricity generation industry in the Slovak Republic by investing in two electricity generationpower stations (power station).The fair valuesofthese power stationshave been calculated by management by usingthe discountedcash flow method(DCF). The DCF assumesthe following:

Methodology Period Average annual Discount rate rate Powerstation I Discouoted 20t0 - 20t5 2,57yo r0,'7% cash flow 2015- 202s |94% Terminalliquidation valueofassets Powerstation 2 Discounted 2010- 2015 cashflow 20t5 - 2035

43 PENTA INVESTMENTSLIMITED NOTESTO THE PARENTCOMPANY SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED3T DECEMBER 2O()9

16, Investmentsin subsidiaries(continued) (g) Ctfoca Holdings Public Co Ltd The Companyhas, thoughits subsidiaryCyfoca Holdings Public Co Ltd (Cfoca), invested in the telecommunicationsindustry and has recognisedan impairmentof its investmentin Cyfoca in view of the recentfinancial crisis, which has adverselyaffected this industry.The Company establishedthe recoverableamount of Cyfoca by referenceto best estimateof recentmarket offers and valuein use calculations.

(vi) Seutritieson inyestments The tablebelow showsthe o%of shareholdingin subsidiariesofthe Companypledged as security to various financial institutionsagainst borrowings provided to those subsidiaries.The balance disclosedrepresents the liability due to thosefinancial institutionsat 3l December2009 by the subsidiariesof the Comoanv.

Subsidiaries Borrowings at Pledged% Borroryings at Pledgedo/o 31 December holdingin 31 December holdingin 2009 subsidiaries 2008 subsidiaries

Disposals MobilKor; a.s. t5.434.925 t00% 20.388.200 t00y. Tes Vsetin,s.r.o 32.933.837 t00% 38.506.053 t00% Digital Park Einsteinova,a.s. 61.t47.4t0 t00% 33.910.078 t00% ZSNP a.s. 59.070.000 96.06% 6.148.676 96.06yo Mecom Group,s.r.o 108.606.621 t00% t06.454.65'r r00% Sunsize,a.s. t;170.000 l00yo 3.'174.t49 t00% Zabka,a.s. 3.922.766 100% 7|1.289 t00% Centrade,a.s, 18.828.613 ljOYo 20.0'70.63'7 t00% Alpha Medical,a.s. 6.030.252 r00% _ PPCEnergy Group, s.r.o. t40.419.t09 t00yo FortunaSK, a.s. 21.824.984 100% 23.244 .90s t00% 469.988.517 253.208.644

In addition to the abovepledge of investmentsin subsidiaries,the1.463.524 shares out of the total sharesheld by the companyin the subsidiaryZSNP, a.s. representing25,28% out the total issuedshare capital of the subsidiary,are pledged in favor of CitibankN.A in order to securethe transactionsentered by the Company in corrunoditySWAP transactionsto fix the price of aluminium.

A/l PENTA INVESTMENTS LIMITED

NOTES TO THE PARENT COMPANY SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2OO9

17 Merger rvith subsidiaries Penta During 2008, Penta Investment, s.r.o' (subsidiary of Penta Investments Limited) and Investment,a.s. (fellow subsidiary)merged with the Company'

The cross border merger of the Company with Penta Investmentss.r.o. (Penta Slovakia) was finalized upon approvai of the crossborder rnergerby the Limassol (Cyprus) Dishict Court on 4 June 2008. penta Slovakia was liquidated without been dissolved and the Company being the surviving entity of the merger has undertaken all the underlying assetsand liabilities and ongoing activitie; of Penta Slovakia. The cross border merger was implementedin accordancewith the releyant agreementsigned between the two parties on 31 March 2008 and the National Laws of the Republic of Clprus and Slovakia as well as the provisions of the EuropeanUnion Directive 2005/s6lEC.

The crossborder merger of the Companyand PentaInvestments, a.s. (PentaCzech Republic) was finalized on 24 october 2008 upon the approval of the mergerby the Limassol (c1prus) District Court. In accordancewith the cornmon terms of the Cross-border Merger Agreement signed by the merging entities on 3l May 2008, the Company as the surviving entity continuesas from the finalization of the mergerto carry on the existing activitiesofPenta CzechRepublic and undertook all assetsand liabilities. The cross border merger has been implementedin accordancewith the relevant National Laws of the Republic of Cyprus and Czech Republic as well as the European Union Directive2005 | 56lEC.

On the respectivedates ofthe mergers,the net assetsof the mergingcompanies are indicated below.

Penta Penta Investment, Investment, s.r.o. a.s. Total Euro Euro Euro Intangibleassets 314.610 2.844 317.454 Property, plant and equipment t.202.s23 7t4.140 r.916.663 lnventories 1.411 l.4lI Tradeand otherreceivables |.442.850 690.851 2.133.701 Taxationpayable (1e.01e) (19.019) Cash and cash equivalents 142.209 170.289 312.498 Tradeand otherpayables Q.065.949) (680.416) (2.'.746.36s) Net assets 1.018.635 897.708 r.9t6.343

Company'sshare ofnet assets 1.018.635 897.708 r.916.343 Carrying value of inveshnents 3.483.687 803.148 4.286.835 Transferto Reserves 2.465.052 2.370.492

45 PENTAINVESTMENTS LIMITED NOTESTO THE PARENTCOMPANY SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED31 DECEMBER2OO9

I8 Derivativefinancialinstruments 2009 2008 Assets Euro Euro Non-current Commodityswap (i) 30.561.10s 30.561.105 Current Commodityswap (i) 13.656.000 27.095.427 l3.656.000 27.095.42'1 Liabiliti€s Non-current Interestrate swap (ii) 289.254 2&9.254 Current Inlerestrate swap (ii) 76l.ll0 761.130 (i) Commodity swap The Company enleredinto commodity swaps during the years 2008 and 2007 in order to hedgethe businessrisk arisingfrom its significantindirect investmentin associateSlovalco, a.s. (a direct associateof subsidiaryZSNP, a.s.). Slovalco,a.s. operatesin the rvorldrvide aluminiumand metal marketsand is exposedto fluctuationsin metal pricesthat can affect its revenuesand cost of sales.In Slovalco, a.s. part of the risk is naturally hedgedrvhilst a certainpart is directly hedgedby using financial instrumentsby Slovalco,a.s. itself, rvith rhe remainingpart of the risk beingunhedged. The Companythus entered into commoditysrvaps to hedge its interest for the remaining unhedgedposition for expectedproduction. The comrnodilyswaps entered into by the Companycannot be designatedas hedginginstruments to be usedfor hedgeaccounting since it relatesto generalbusiness risk hedging. As a result, the Companyaccounted for the said derivativesas at fair value throughprofit or loss.During the year, the Company recognisednet losses on fair value (realised and unrealised)of Euro 16.210.808.The fair value ofthe swapswas determinedby using discountedcash florv model andmarket prices of LME futures.

The following tableprovides details of the opencommodity swap contracts at 3l December: 2009 Averagecontractedprice Contracted Fair value Euro/tone tones Euro Euro

2010 2.63'7 47.t00 13.656.000 2008 AYeragecontracted price Contractcd Fair value Euro/tone tones Euro Euro 2009 |.8'72 39.576 27.095.427 2010 |.872 47.700 30.561.105 87.216 s7.656.532

46 PENTA INVESTMENTS LIMITED NOTES TO THE PARENT COMPA}IY SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2OO9

l8 Derivative financial instruments (continued) (i) CommoditY srvaP(continued)

Any receivable relating to the swap agreementwith the financial institution refened to above, rs pleiged as securifyfor bankborrowings of Euro 59 million providedto the subsidiaryZSM, a.s. Group at 31 December2009.

The matudty analysisof the commodityswap is shownbelow:

Assets2009 l-6 6-12 l:2 Adjustment Total months months years Euro Euro Euro Euro Euro Commodityswap r3.656.000 - 13.656.000

Assets2008 1-6 6-12 r-2 Adjustment Total months months years Euro Euro Euro Euro Commodityswap t2.626.000 14.626.000 31.167.000 (762.468) 57.656.532

(ii) Interest rate s\Yap

The Companyentered into an interestrate swap contractto hedgethe cashflow risk arising from fluctuations of interest rates relating to a bank borrowing obtained by its subsidiary Digital Park Einsteinova,a.s. Under the termsof the interestrate swapconhact the Company exchangesfloating for fixed interest rate amounts based on a principal notional amount of Etxo 20 .210.682 until I 0 April 20 11 . The fair value of the interest rate swap as at the end of the 2009 financial period has been determinedby discountingthe expectedfuture net cash flows using the swap curve at the reporting date.

During the year, a net realisedloss amountingto Euro 410.939which was recognisedin the statementof comprehensiveincome (note 7) relatedto the settlementof SWAP transactions (differencebetween the variableand fixed interestrates that havebeen agreed).

The table below detailsthe notionalprincipal amountand remaining terms ofthe interestrate swapoutstanding at the yearend date:

2009 Average Floating Expected Expected Fair fixed rate cashinflows cash outflows value interest rate vo vo Euro Euro Euro

Lessthan I year 5,750/. 3M EUREOR 404.021 1.165.630 761.130 I to 2 years 5,75% +t,10% 280.814 5t3.244 289.254 684.835 t.6'18.874 1.050.384

47 PENTAINVESTMENTS LIMITED NOTES TO THE PARENT COMPAIIY SEPARATEFINANCIAL STATEMENTS FOR THE YEAR ENDED3I DECEMBER2Ot)9

19 Loansand advances 2009 2008 Euro Euro Current Loans and advancesto third parties 104.995.r88 92.t89.636 Allowance for doubtful debts (7s.730.494) (5r.190.431) Loansand advancesto third parties,net 29.264.694 40.999.205

Loansand advancesto relatedpafties (note 25) 264.657.837 224.248.025 Allowance for doubtful debts /4t 4q5 7',lSI (43.909.682) Loansand advancesto relatedparties, net 223.t62.r02 180.338.343 252.426.796 221.337.548

Non current Loansand advancesto third parties 23.705.626 r9.187.134 Allowance for doubtful debts (12.827.390) (7rr.703\ Loansand advancesto third parties,net r0.878.236 18.475.431

Loans and advancesto related paties (note 25) 163.233.568 193.556.084 Allowance for doubtful debts (s6.74s.392) (41.316.276) Loansand advancesto relatedcompanies, net 106.488.176 rs2.239.808 117.366.4t2 t-10.7 15 .239

Total loansand advances 369.793.208 392.052.787

Analysis of loans and advances(gross amount) 2009 2008 Euro Euro Not impaired 320.496.770 379.689.553 Pastdue but not impaired s.671.533 1.294.780 Impaired 230.423.916 r48.196.546 556.592.219 529.180.879

Ageing analysisof past due but not impaired

2009 Overdueup to Overdue Ov€rdue Overdue Total 3 months 3-6moDths 3-12months morethan l2 months Euro Euro Euro Euro Euro Loan and advancesto third parties 1.0r7.951 72.376 279.340 t.369.667 Loan and advancesto relatedparties 249.5t4 4.0t0.259 42.093 - 4.301.866 t.267.46s 4.082.635 219.340 5.671.533

48 PENTA INVESTMENTS LIMITED STATEMENTS NOTES TO THE PARENT COMPANY SEPARATE FINANCIAL FOR THE YEAR ENDED 31 DECEMBER 2OO9

19 Loans and advances(continued) Ageing analysisof past due but not impaired (continued) 200E Overdue up to Overdue Overdue Overdue Total 3 months 3-6 months 3-12months morethan 12 months Euro Euro Euro Euro Loan and advancesto third parties 395.955 648.356 250.469 1.294.'780 I-oar and adva[cesto relatedparties 395.955 648.356 2s0.469 1.294;780

The management recognised cumulative impairment losses of Euro 186799'011 (2008:Euro 137.128.092)against the loan receivablesbeing impaired.

Movement in allorvancefor doubtful debts The movementof the provisionfor irnpairmentof loan advancesis shownin the tablebelow: 2009 2008 Euro Euro 1 January r37.128.092 40.091.461 Increasein allowancerecognised in statementof comprehensiveincome, net 66.965.456 99.024.213 Transferred (6.767.367) (1.987.s82) Amounts written off during the year against receivables (r0.s27.170) 3l December 186.799.011 137.128.092

(i) Analysis of the rnajor impairment lossesfor the year 2009 (a) Allowance for doubtful debts of Euro 25.648.117(2008: Euro 22.015.891)relate to loans provided to counterparties which are in unexpectedly difficult economic situations due to the financial crisis. Managementhas createdprovisions for theseloans receivable based on their recoverability.The recoverabilityofthese loanshas been estimated by managementbased on prudentestimates ofexpected cash inflows. (b) Impairmentlosses of Euro 21.216.296have been recognised against the loan receivablefrom Vinaco Holdings Ltd, which is engaged in the acquisition and collection of default receivables.The Companyestimated the recoverabilityofits loan by examiningthe financial health of its subsidiary.Due to the financial crisis, the subsidiaryexperienced sigrihcant losses. (c) With respectto the impairmenttest carriedout for Kure Limited, the Companyassessed the tolal exposureof funds contributedto Kwe Limited of Euro 10.633.111which consistsofa loan receivableamounting to Euro 1.510.940and equity contributionsof E:ulo 9.122.17I. The recoverable amount of Kure Limited was calculated by reference to best estimate of recent market offers and value in use calculations. The Company recognised an impairment lossofEuro 6.219.735,with Euro 1.510.940been provided for againstits loan receivableand the additional amount of Euro 4.708.795been allocatedto its equitv contributionsin the comDanv.

49 PENTA INVESTMENTS LIMITED

NOTES TO THE PARENT COMPANY SEPARATE FINANCIAL STATEMENTS FORTHE YEARENDED 31 DECEMBER2OOg

19 Loans and advances(continued)

(d) Impairrnentlosses amounting to Euro 1.480.239(2008: Euro 48.249)were recognisedagainst receivablesfrom subsidiarieswhich are under liquidation. The managementreviewed the financial position of the said subsidiariesand determinedthat any receivablesfrom these subsidiariesare not recoverable. (e) Loans granted to financial restructuring managementcompany amountedto Et:ro 32.656-423, havebeen assessed as impaired.Out ofthe total amountadvanced, Euro 17.775.000has been recognisedas a provision for impairment. The managementestablished the recoverable amount and provision needed for impairment by examining the underlying assetsand liabilities of the debtor.They relate to manufachring activitieswhich were heavityaffected by the financial crisis. (ii) Renegotiatedloans Renegotiated loans that would otherwise be past due during 2009 amounted to Erxo 57.620.954 (2008: Euro 62.660.087). (iii) Fair values The fair valuesof loans advancedapproximate their carrying amountsas at the statementof financialposition date. (iv) Maturity analysisofloans and advances The following tables detail the Company's remaining conkachral mahrrity for its loans receivables.The tableshave been drawn up basedon the undiscountedcash inflows of loaas receivablesbased on the earliestdate on which the Companywill receive.The table includes both interest and pdncipal cash inflows. The adjustrnentcolumn representsthe possible future cash inflows attributable to the instrument included in the maturiry analysis which are not included in the carrying amount of the loan receivables on the statement of financial position.

2009 Weighted Less than 6-12 l:2 2-5 Iuore than Adjustment Carqing average 6 months months Years years 5 years amoutra effective or on intcrcst demand rate 9/o Euro Euro Euro Euro Euro Euro Euro Loanand advances '1,30% to thirdparties 51.475.342 57.690.73012.306.920 12.82'7.390 2.550.964 (8.150.532) 128.700.814 Loan andadvances to relatedparties 1,32% 4'1.272.442231.309.781 28.613.'179 33.513.759 162.1'10.25l (74.988.609) 427.891.405 98.141.184 289.000.51340.920.699 46.341.149164.721.2t5 (83.139.141) 556.592.2t9

2008 weighted Less than 6 6-t2 l'2 2'5 luore thsD Adjustnent Car4iog average months or months Years years 5 years amourl effective on demand interest rate 9/o Euro Euro Euro Euro Euro Euro Euro Loanand advances to thirdparties 1.8'l% 35.274.5'14 62.699.991 2.126.988 20;134.011 - (9.458,794) ttl.3'16.'t't0 Loanand advances to relatedparties 7.610/0 38.225.811 199.509.528147 -399.681 3.574.148 91.960.346(62.865.405) 417.804.109 73.152.385262.209.519 149.526.669 24.308.159 91.960.346 (7r.976 r99) 529-180.879

50 PENTA INVESTMENTSLIMITED NOTESTO THE PARENTCOMPANY SEPARATEFINANCIAL STATEMENTS FOR THE YEAR ENDED31 DECEMBER2OO9

20. Trade and other receivables 2009 2008 Euro Euro Current Trade receivables 3.026.670 1.444.466 Amounts due from related parties (note 25) 68.022.472 8.989.110 Otherreceivables 3.298.990 224.755 74.348.r32 10.658.331

21. Cash and cash equivalents 2009 2008 Euro Euro

Cashat bank and in hand 46.460.072 73.055.194

22. Share capital 2009 2008 Euro Euro Authorised capital 200.000ordinary shares ofEuro 1.71each 342.000 342.000

2009 2008 Euro Euro Issued,called up and fully paid 182.868ordinary shares of Euro 1.71each 312.704 3t2.704

In view of the adoption of the Euro as the official currency of the Republic of C;,prus as from I January2008 and following the provisionsofthe Law relevantto the adoptionofthe Euro (Law 33(1)12007),the Company'sshare capital has been convertedfrom the CyprusPound into the Euro during the year 2008. Following the shareholdersspecial resolution taken on 2 January 2008, the authorized capital of the Company which at the time of the conversion was CYf,200.000divided into 200.000ordinary sharesof CYf,1 each,has been converted to Euro 342.000 divided into 200.000 sharesof Euro 1,7i each. Further, following the said shareholders'resolution dated 2 January2008 the issuedshare capital ofthe Companywhich on the date of the conversionwas Cf,182.868 divided into 182.868shares of CYf,l each havebeen converted to Euro 312.704divided inro 182.868ordinary shares of Euro 1,71each.

5l PENTAINYESTMENTS LIMITED NOTESTO THE PARENTCOMPANY SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED31 DECEMBER2O()9

23. Borrowings 2009 2008 Euro Euro Current Promissorynotes payable (ii) 84.702.735 58.537.633 Otherbonowings (iv) 13.687.908 t3.085.726 Loansdue to relatedparties (v & note25) 358.668.670 474.049.666 457.059.3t3 545.673.025 Non current Bankbonowings (i) 19.099.906 Promissorynotes payable (ii) 7.415.858 5.72t.498 Otherborrowings (iv) 5.496.352 4.645.652 Loansdue to relatedpafties (v & note25) 86.728.223 107.513.919 118.740.339 I17.88r.069 Total borrowings 575.799.652 663.554.094

(D Bank borrowings Bank'sborrowings basic terms are as follows:

Bank name Currency Interest Maturity Carrying Carryirg rate date amount amounl 2009 2008 Euro Euro J&T Bank,a.s. czK t0% 30t09/2012 12.960.5t4 J&T Bank,a.s. Euro l0% 23/ll/2012 6.139.392 Total 19.099.906

Bank'sborrowings have been guaranteed by way ofa blankbill of exchangebeen provided by the Companyto the counterpartybank.

(ii) Promissorynotes payable Theweighted average interest rate is 6.37%per annum(2008:7,47o/o)- Tbe promissory notes payable are denominated in Euros (F;.xo82.257 .062 representing 89%), CZK (Euro9.192.882 representing 10%) and US$ (Euro668.647 representing l%). In 2008,the 75,77%of the promissorynotes were denominated in SlovakKorunas and the remaining amountsmainly in Euro andCzech Korunas.

(iii) Loansdue to relatedparties Theweighted average interest rate on theseioans is 5.89%per annum (2008:7,08%).

(iv) Other borrowings Theweighted average interest rate on thesebonowings is 7.83%per annum(2008: 9,51%). Theseborrowings are mainly denominated in CzechKorunas (89%) (2008: 91,5%).

52 PENTA II,{VESTMENTS LIMITED STATEMENTS NOTES TO TIIE PARENT COMPANY SEPARATE FINANCIAL FOR THE YEAR ENDED 3T DECEMBER 2OO9

23. Borrorvings(continued) (v) Securitiesover loans due to related parties Loansdue to relatedparties are secured as follows: o Borrowings from indirect subsidiary, Aero Vodochody, a s (Aero) in the amount of 5,tro 50.479.777(2008: Euro 35.830.135),are securedby issuing a blank promissorynote in favor of Aero in respectofthe borrowedamount'

o Borrowingsfrom ZSM, a.s.in the total amountof Euro 68.546.840(2008: Euro 52.060.420)arc securedby promissorynotes issuedby the company in favor of ZSNP, a.s. in respectof the borrowed amount and through blank promissory notes issued as security for the settlement of interestand default interestpayable.

o The remainingborrowings obtained from relatedparties amounting to Euro 235.877.503(2008: E:uro 164.423.258)are unsecured.

(vi) Securitieson loanswhich were outstandingat 3l December2008 and settledin 2009 were:

Bonowings frorn PPC Power, a.s. in the amount of Euro 185.885.946were securedin 2008 by issuinga blank promissorynote in favor of the fund providerin respectof the bofrowedamount

Borrowingsftom SlovenskyInvesticny Holding, s.r.o.in the total amountof Euro 150.729.843were securedas follows: (i) By promissorynotes issuedby the Companyin favor of the fund provider in respectof the borrowed amount and by issuing blank promissory notes as security for the settlement of interest and default interest payable. (ii) By pledge over the l00olointerest held in subsidiaryDovera, a.s. and indirect interest in DoveraHolding, a.s. (iii) By pledge over 4.066.397shares (70,24o/o shareholding) held in subsidiaryZSNP, a.s. in the nominalvalue of SKK 220 per share. (iv) By a pledgeon the adminishationand ofiice building in Bratislavaowned by PentaReality, a.s. a fellow subsidiaryof PentaInvestrnents Limited. The fair value of the real estatebased on recentvaluation amounted to Euro 4.317.1I5.

(vi) Fair values The fair values of the current borrowings equal their carryring amounts. The fair values of non-current borrowings approximate their carrying amounts.

(vii) The following tables details the Company's remaining contractual maturity for its borrowings. The tables have been drawn up based on the undiscounted cash flows of borrowings basedon the earliestdate on which the Companycan be requiredto pay. The table includesboth interestand principal cashflows. The adjustmentcolumn representsthe possible future cash flows attributable to the instrument included in the mah-rity analysis which are not included in the carrying amount of the borrowings in the statementof financial position.

)J PENTA INVESTMENTSLIMITED NOTESTO THE PARENTCOMPAIIY SEPARATEFINANCIAL STATEMENTS FOR THE YEAR ENDED31 DECEMBER2O()9

23. Borrowings(continued)

2009 Weighted Lessthan 6 6-12 l-2 2-5 More than Adjustnent Carrying average monthsor months Years years 5 yeers amount eflective on demrnd inferestrate v, Euro Euro Euro Euro Bank borrowings IO% 24.425.704 - (5.325.798) 19.099.906 Promissory notespayable 6,37% 40.519_856 47.2'70.63'7 t.'t93.5t6 6.986.948 - (4.4s2.364) 92.118.593 Other bonowings 7,83o/o 948.135 13.386.323 1.048.451 6.15't.370 - (2.356.0r9) 19.r84.260 Loansdue to relatedparties 5,89% 182.158.079185.343.759 14.880.421 63.741.950 26.229.855 (26.957.t'tI) 445.396.A93 223.626.070246-000;719 t7.722.388 r01.3rr.972 26.229.8s5 (39.091.352) 575.799.652

2008 Weighted Lessthan 6 6-12 t-2 Z-S Morc AdlustmeDt C.rqiEg average monfhsor months Years years than rmouDt effective on demand 5 years interestrate 7o Euro Euro Euro Euro Euro Euro Euro Promissory notes '7,41% payable 32.366.164 28.589.653 6.396.57t (3.093.25j) 64.259.t31 Otherborrowings 9,51% 13.080.919 460-542 - 6.686.288 - (2.496.37t\ t7.73t.378 Loansdue to relatedpaties 7,08% 267.681.028 219.463.624 89.923.990 39.778.656 - (35.283.713) 581.563.585 313.128.111248.st3.8r9 96.320.s6r 46.464.944 (40.873.341) 663.554.094

54 PENTA INYESTMENTSLIMITED NOTESTO THE PARENTCOMPA}IY SEPARATEFINANCIAL STATEMENTS FOR THE YEAR ENDED31 DECEMBER2OO9

24. Creditors,accruals and otherliabilities 2009 2008 Euro Euro Current Amountsdue to relatedparties (note 25) 137.872.298 83.915.078 Othercreditors and accruals 34.0s1.250 9.297.339 171923.548 93.212.4r1

The creditorsabove include dividends payable to the parentof Euro 58.152.024(2008: Euro56.600.000) and unpaid share capital contributionsto subsidiariesamounting to Euro8.300.658 (2008: Euro 23.2'73.665).Additionally, the amountincludes outstanding (2008: -Europurchase consideration for acquisitionof subsidiariesamounting to Euro 2.000.003 4.930.082).Other payables,include a settlementfee for participationagreement amountingto Euro 19.950.000.The agreement was entered into earlyin theyear and created an obligationto pay participants13,5% of realisedincome frorn a projectfor a periodof time. The agreementwas terminatedby the year end, and the partiesagreed the payoutby estimatingthe future cashflowsfor a fuh:re period of the next 6 - 8 yearsand an effective discountrate of 7,16%oper annum.The 2009year end balance also includes an amountof Euro11.000.000 payable to MecomGroup, s.r.o. for theright of useof intellectualproperty' Therepayment of this amountis securedthrough a blankpromissory note issued to Mecom Group,s.r-o.

The following tablesdetails the Company'sremaining contractual maturity for its creditors and accruals.The tableshave been drawn up basedon the undiscountedcash flows of creditorsand accruals based on the earliestdate on whichthe Companycan be requiredto pay. The table includesboth interestand principalcash flows. The adjustmentcolumn representsthe possible fuhue cash flows attributableto the instrumentincluded in the maturity analysiswhich arenot includedin the carryingamount of the creditorsand accruals in thestatement of financialposition.

2009 Weighted averagG Lessthan 6 6-12 r:2 2-5 More Carrying eff€ctive interest monthsor monfhs Years years than amount on demand 5 years o/o Euro Euro Euro Euro Euro Euro Amountsdue to relatedparties t3'7.8',12.298 - 137.8't2.298 Other credilorsand accruals 34.051.250 - 34.051.250 t11.923.548 t7 |.923.548

2008 Weightedaverage L.ss than 6 6-12 l:2 2-5 More Carrying elTectiveinter€st months years than amount rate on demrnd 5 years v, Euro Euro Euro Euro Euro Euro Amountsdue lo relatedparties 83.915.078 - 83.915.078 Other creditorsand accruals 9.297.339 - 9.29',7.339 93.212.411 9J.212.4r7

55 PENTA INVESTMENTSLIMITED

NOTESTO THE PARENTCOMPAT{Y SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED31 DECEMBER2OO9

25. RelatedParty Balancesand Transactions Thefollowing related party transactions and balances were effected during the year 2009. 2009 2008 Euro Euro Due from related companies:

Due ftom direct subsidiarvcomoanies AbrastorHoldings Limited Loan 4.061 AERO Vodochody,a.s. Tradebalance t0.100 B Four,a.s. Loan 45.556.'17| t00.735.779 BonamassaTrading Limited Loan 20.707 14.498 Bory Mall, a.s(formerly Port Mall, a.s) Loan 3.'19'1.219 CEESGLtd Other Loan Centradea.s Loan 5.Ot| 222 ClemencyHoldings Limited Loan 239 92.'162 CyfocaHoldings Pubtic Co Ltd Unpaid dividend declared t14.656 Cfoca HoldingsPublic Co Ltd Loan 33.815 36.999.38r DOVERA Holding, a.s Tradebalance 22.0s9 DGK Trade,spol s.r.o. Loan 525,980 485.954 DGK Trade,spol s.r.o. Tradebalance 34.645 Digital Park Einsteinova,a.s. Loan 7.666.71; 7.7'17.485 Dovera,a.s. v likvidacii Advance pa),Tnent t'l .3-tI Dr.Max Holding B.V Loan 4.599_860 EquinoxInvestments B.V. Loan l1.753.035 17.100.103 FortunorTrading Limited Loan 18.091.396 2.502.966 Fortunor Trading Limited Reinvoicing 8.687 GambellaHoldings Limited Loan 24.000 6.154 GrutioHoldings Ltd Reinvoicing 45.O4'l Gntio HoldingsLtd Overpayment 12.o92_ GratioHoldings Ltd Loan 922.1t9 Gratio Hotdings Ltd Unpaid dividend declared 66.581.540 Tes Vsetin,s.r.o (former Kelisia,a.s.) Advance payment 29.552 Kure Limited Loan 1.320.801 Lorea InvestmentsLimited Loan 19.007.893 LoreaInvestments Limited Unpaid dividend declared 3.357.992 Lorea InveshnentsLimited Assignmentof receivable 4.062.260 LungaEnterprises Limited Loan 366.86; 337.1l8 MassarosaHoldings Limited Loan 98s.0'12 9t4.O34 Mecom Group,s.r.o Loan 620.t79 Mecom Group,s.r.o. Tradebalance t5.62'1 Mecom Group,s.r,o. Reinvoicing 45.000 Mediworx SoftwareSolutions, a.s. Loan t 09.010 Mobile EntertainmentCompany, a.s. Loan MobilKorn, a.s. Loan 19.896.64t 03 Invest,a.s. Loan 11.086.5u14 8.86t.730 ObonaTrading Limited Loan t6.094 7.076 Office Park,s.r.o Loan 4t4.769 2.042.188 '16.'.7t3 OzetaNeo, a,s, Tradebalance PentaEnergy Acquisitions Limited Loan 252.75l r98.409 PentaFirst Fund Limited Unpaid dividend declared 260.000 260.000

56 PENTA IN'VESTMENTSLIMITED NOTESTO THE PARENTCOMPANY SEPARATEFINANCIAL STATEMENTS FOR THE YEAR ENDED31 DECEMBER2OO9

25. RelatedParty Balancesand Transactions (continued) Thefollowin! rehtedparty transactions and balances were effected during the year 2009.

2009 2008 Euro Euro Due from related companies: PIL organizacnazloZka Accrued Income 5.000 Pentalnvestments Limited o.z. Tradereceivable 221.234 Port Mall Management,a.s. Loan 1.002.595 PPCPower, a.s. Unpaid considerationfor acquisitionof shares 19.112 PXP Corp.,s.r.o. v likvid6cii Unpaid dividend declared 33.194 33.194 RemoboHoldings Ltd Loan 19.232 Rotofi ech Meadows Limited Loan 2r7.952 1.s63.84s SaloriHolding B.V. Loan 196.586 SalvisReal Esiate,a.s. Loan t.596.124 3.2'73.0t6 SandwedgeB.V. Loan 34.831.903 8.289.696 SidonioHotdings Ltd Loan t5.748.577 5.028 SlovenskaTeplarenska S.H.P Limited Tradebalance (previouslyPenta Asset Management Limited) 2.767 Sunsize,a.s. Loan Tikka, a.s. Tradebalance 189.288 Tinellus, a.s. Loan 6.034.252 2.207.590 The Porq a.s.(fomer Uphill, a.s.) Loan 91.058.694 86.096.689 Tredar Investments Limited Loan 90.915 84.269 VelveTex,a.s. Trade balance 18.687 Vinaco HoldingsLtd Loan 330.086 VSZ Kgokor, a.s. Loan 322.1'71 WalagoHoldings Limited Loan 7.424 5.028 Zabka,a.s. (previously Catasta, a.s.) Loan 14.608 947 PFSE,a.s. Loan 19.540 WISE, a.s Trade balance t'74.288

Due from indirectsubsidiarv companies Alicela, a.s. Loan 7.9t4.730 1.720.958 Bintorio HoldingsLimited Loan r28.530 98.t49 CerezianHoldings Limited Loan 19.'746_ 3.284 Fortuna sazkova kancelar, a.s. Other Loan 70.565 Malta EntertainmentHolding Ltd OtherLoan LLC'?AVIS" OtherLoan 1',t6.483 PentaPet Food GmbH Reinvoicing t52.'734 152.734 Point AkcioYaSpolocnost Kosice Loan 410.269 RotortechAero CompositesLimited OtherLoan 232.792 t.67032; SandbarServices Ltd. Loan 20.039.808 StreamCommunications. Sp. Z o.o. Reinvoicing t6.82s Tularosa,a.s. Loan t8.824.'.123 WedgesandB.V. Loan 13.890.098 33.07| ZabkaPolska S.A. Reinvoicing 426.203

57 PENTA INVESTMENTSLIMITED NOTESTO THE PARENTCOMPANY SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED31 DECEMBER2OO9

25. RelatedParty Balancesand Transactions (continued)

2009 2008 Euro Euro Due from related companies: 't.6t8.s62 Kev managementpersonnel Loan 2.294.467

Otherrelated companies Innovatel,a.s. Loan 59.623 63.87t Klerem, a.s. Loan 3.008.548 574.308 Otherrelated companies Other 164.031 42.299 397.672.75Q 34t.567.26r The abovementioned loan receivables eam interest at therate ranging from 3,43ohto 20%o (2008: 3,43% to 20o/o)per annumand are reportedin the financial statementsunder the followingcaptions:

2009 200E Euro Euro Currentloans and advances(note 19) 223.162.t0? r80.338.343 Non-currentloans and advances(note 19) 106.488.176 t52.239.808 Current kade receivables and other debtors (note 20) 68.022.472 8.989.1l0 397.672.7 s0 341.567.26r Cashat bank: 2009 2008 Euro Euro Cashat bank held bv subsidiary: Privatbanka,a.s. 37.998.659 s7.011.702

Dueto relatedcompanies: Natureofbalances 2009 2008 Euro Euro

Due to holding aompany: 't PentaHolding Limited Loan 5.'t 89 .5s0 5'1.4U.766 PentaHolding Limited Assignmentof receivable r90.846 75',1.210 PentaHolding Limited Unpaidconsideration for purchaseofshares 710.546 PentaHotding Limited Dividends payable 58.151.706 56.600.000

Due to subsidialvcomoanies: B.Four,a.s. Unpaidconsideration for the increaseof sharecapital 10.426-435 Centrade,a.s. Unpaid consideration for the increaseof sharecapital 8.268.060 5.512.25'7 desk6ldk6ma, a,s. Loan 20.65s.236 CyfocaHoldings Public Co Ltd Unpaid consideration for the increaseof share capital 24.785 DendaBeheer B.V. Unpaid consideration for the increaseof sharecapital 12.829

58 PENTA IN TESTMENTS LIMITED NOTES TO THE PARENT COMPANY SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2OO9

25. Related Party Balancesand Transactions (continued)

2009 2008 Euro Euro Due to relatedcompanies:

DendaBeheer B.V- Currentaccount 2.195 DGK Trade,spol. s.r.o. Tradepayables 31.40',7 DigitaI park Einsteinova Unpaid consideration for the increaseof sharecapital 1.799.486 DoveraHolding, a.s. Loan 13.8',7 4.t',7 4 EquinoxInvestments B.V. Cu[ent account 25.960 Fajne,a.s- (previorsly IDAX Loan Holding, a.s.) 107.504 99.858 FortunaSK a.s.(formerlY Temo, Loan a.s-) 28.25',7.452 26.250.880 FortunorTrading Limited Other I GambellaHoldings Limited Loan t46.9',7'1.364 44.952.820 GratioHoldings Limited Unpaid consideration for purchaseof shares E66.993 Cratio Holdings Limited Unpaid consideration for purchaseof shares 58.050.412 GratioHoldings Limited Other 408.000 HICEE B.V Loan t4.7'13.224 16.050.109 Tes Vsetin, s,r.o(formerly Kelisia Loan a.s.) 1.083.215 LoreaInvestments Limited Loan 128.811 LPV FinanceB.V. Loan 2.34t.',l21 MECOM, Group,s.r.o. Accruedprofessional fees 5.095 lt.233 MECOM Group,s.r.o. Right ofuse of intellectualproperty 11.000.000 Oakfield,a.s, Loan 174.946 PentaFirst Fund Limited Loan 458.603 452.636 PentaReality, a.s. Tradepayables 96.019

Port Mall Management,a,s. Unpaid consideration for the increaseof sharecapital 600.000 Bory Mal[, a.s.(formerly Poft Unpaidconsideration Mall, a.s.) for the increaseof sharecapital 9.362 1.043.510 PPCHolding, a.s. Unpaid consideration for purchaseofshares r.327.7 64 Privatbanka,a.s. Cufient account 845 82.218 Privatbanka,a.s. Tradepayables 3.432 SaloriHolding B.V Current Account 406 SandrvedgeB.V Curent Account 44.474 SlovenskfInvesticnl/ Holding, Loan s.r.o.(formerly Slovensky Investicny,a.s.) 150.729.843

59 PENTA INVESTMENTSLIMITED NOTES TO THE PARENT COMPA}IY SEPARATEFINANCIAL STATEMENTS FORTHE YEARENDED31 DECEMBER2OOg

25. RelatedParty Balancesand Transactions(continued)

2009 2008 Euro Euro Due to relat€d companies:

Sunsize,a.s Unpaid consideration for the increaseof sharecapital 439.86't The Pon, a.s.(former Uphill, a.s.) Unpaidconsideration for the increaseof share capital 3-428.874 Vinaco HoldingsLimited Loan 2.270.206 WFSE, a.s. Unpaidconsideration for the increaseof sharecapital 23.236 ZabkaHoldings Public Co Ltd Loan (previouslySitima K. Holdings Limited) 300.753 2.270.924 ZSNP,a.s. Loan 68.546.839 52.060.4t9 ZSNP,a.s. Other 862.402 862.402

Due to indirectsubsidiaries: Aero Vodochody,a.s. Loan 50.409.777 35.830.135 Aero Vodochody,a,s. Cu[ent account 25.997 Clanton,a.s. Loan 83.315 t86.797 Mirakl, a.s. Loao t.957.27| 1.818.754 PPC Power,a. s. Loan 23.004.521 I E5.E85.943 SandbarServices Limited Loan 72.499

Due to fellow subsidiarv comoanies: Morma HoldingsLimited Advance payment 684.481 684.482 PentaReality, a.s. Accruedprofessional fees 93.901 r9s.ll6

Due to otherrelated comDanies: BonefeldHolding Ltd Dividendspayable 318 Other related companies Tradepayables l9.l9l 583.269.t91 66s.4'18.663

The aboveliabilities arereported under the following captionsin the financial statements:

2009 2008 Euro Euro Borrowings- current(note 23) 358.668.670 474.049.666 Bomowings- non-current(note 23) 86.'128.223 107.5r3.9 r9 Creditors - current (note 24) l3't.872.298 83.915.078 583.269.t91 665.478.663

60 PENTA INVESTIVIENTSLIMITED NOTESTO THE PARENTCOMPAI.IY SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED31 DECEMBER2OO9

25. RelatedParty Balancesand Transactions (continued)

Revenues Expenses Revenues Expenses 2009 2009 2008 2008 Euro Euro Euro Euro Inlerest on losns qrtd olher financial sereices Subsidiarycompanies 29.664.1'18 39.134460 29 904251 39'129'769 Fellow subsidiarycompanies 112.874 Holding company 4.3'73.783 \.662.525 Otherrelated comDanies 484.301 Key managementpersonnel 361.283 - 12.004 3o.so9.'762 43.597.048 29.916.255 40.905.168 Con s u I rt ne, adn.inis ft ali on an d mano gem ent se rvi ce s Fellow subsidiarycompanies 5.292.680 5.292.680 IntercomDanv dividend Subsidiarycompanies 857.431.952 - 2r3.726.540 Holding company 58.t52.024 85'.1.437.952 58.rs2.024 213;126.540 56.600.000 Purchases of i nrtestmenls and olher finoncisl assels Holding company - 803.148 Subsidiarycompanies - 343.340.000 - 344.143.148

Other revenue /etnense Subsidiarycompanies 880.t t0 12.522.032 Otherrelated comDanies 946.632 689.648 t.826.742 13.211.680

Proftt from disoosal of inlestmenls qnd olher instrumenls Subsidiarycompanies 1.755.r77 33.7t6.906 t.755.t77 33.7t6.906

ot PENTAINVESTMENTS LIMITED NOTESTO THE PARENTCOMPANY SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENIDED31 DECEMBER2OO9

26. Contingenciesand Comrnitments

(D During 2002,the Companydisposed ofits participatinginterests in DrotovnaKordy, a.s.and Drotoi,naDroty, a.s.Under the termsof the saleagreement, the Companyhas the obligation to indemnify the buyers on any losses that might arise from breach or inaccuracy of any representatlon or warranty, covenant or obligation given or taken by the Company and from obligationsof the sold undertakingsas a result of certainenvironmental risks, including soil and groundwatercontamination and other enviro nental contaminationsthat has occunedat the site of the sold entitiesuntil the date of the transferof ownership.The indemnification loss relating to environmentalrisks describedabove is valid for a 25 year period starting from April 2004. Basedon the advice of legal counsels,the managementis of the opinion that no loss is expected to occur, in respect of environmental risks and other risks referred to above.

(ii) The Companyhas provided various corporateguarantees to financial institution as security for loansprovided to direct and/or indirect subsidiaries.The tablebelow disclosesthe total exposureat 3l December2009 in relationto thesecorporate guarantees:

Direct/indirect subsidiary & other Exposureat Exposureat related parties 3I December2009 3l December2008 Euro Euro The Port, a.s.x 4.200.000 1.934.351 DGK Tradespol, s.r.o. r.348.234 1.67t.444 PPCPower, a.s. 185.885.900 171.015.070 ZSNP, a.s.(iv) 28.782.157 30.596.907 Tes Vsetin, s.r.o. 32.933.837 Mobilkom, a.s. 6.355.400 6.355.400 PPCEnergy, a.s. i3.000.000 t2.945628 DigihalPark Einstenova, a.s. 61.t47.410 33.910.000 Sunsize,a.s. 1.770.000 Alison Slovakia,a.s. 45| .234 ForhrnaSportska Kladionica d.o.o. 481.522 Cesk6ldk6ma, a.s. 1.225.000 Key managementpersonnel 5.856.792 341.279.730 260.586.s56

* the corporateguarantee was providedin favor of subsidiaryPrivatbaDka, a.s. as the lender to The Port, a.s.

(iii) Penta InvestrnentsLimited agreed to provide MobilKom, a.s. with a long-term loan amountingto Euro51.061.100 (CZK 1.351.332thousand).

Out of the total commitmentamounting to Euro 51.061.100,the Companyprovided loans to MobilKom. a.s.of Euro 49.806.322as aI3l December2009.

Penta Investments Limited guarantees that it will not demand any repa)rment ftom MobilKom, a.s.or the repaymentdate shall be deferreduntil the total amountdue to creditors or the bank with respect to financing the network build up is fully repaid. The bank bonowing of MobilKom, a.s. amountedto Euro 16.367.204at the statementof financial positiondate.

62 PENTA INYESTMENTS LIMITED

NOTES TO THE PARENT COMPANY SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2OO9

26. ContingenciesandCommitments(continued) (iv) The company provided corporateguarantee to citibank (Slovakia),a.s. in respectof bank borrowing obtainedby the subsidiaryZSNP a.s., during 2007 in the total amount of Euro 86.769.402ruS$ 125.000.000)as at the siatement of Financial Performancedate. The company is a capped guarantor covering two principal repaymentsand one interest palment amountingin aggregateto Euro 28.782.157(US$ 41.250thousand)' (v) In addition to the loans grantedto MobilKom, a.s. (disclosedin (iii) above),the company granted loans to other direct and indirect subsidiaries. The subsidiaries have unused granted loansofEuro 310.194.879(2008: 157.039.241)atyear end. (vi) During 2008, the associateKSC Holding, a.s.was sold to a third party fot E'uto22'357 474 and as per the disposal agreementthe company had made certain representationsand warranties. Should any of the representationsor warranties stipulated in the agreementprove to be inaccurate or incorrect, the Company agreed to indemniry the purchaser up to the amount of the purchaseprice of all proven damages,harm or loss which the purchaseror KSC Holdingssuffers as a resultthereof. The indemnificationcovenant of the Companytowards the seller shall ceaseafter 4 years from the closingdate (11 September2008). (vii) During 2008, the associateBTS Holding, a.s.was sold to a third party for Euro 660.873,and as per the disposalageement the Companyhad madecertain representations and waranties. Should any of the representationsor warrantiesstipulated in the agreementprove to be inaccurate or incorrect, the Company agreed to indemniry the purchaser up to the amount of the purchaseprice ofall provendamages, harm or losswhich the purchasersuffers as a result thereof. The indemnificationcovenant of the Companytowards the seller shall ceaseafter 4 years from the closingdate (17 September2008). (viii) On 25 July 2008, GambellaHoldings Limited (subsidiaryof the Group), a Crroupcompany, had signeda salesand purchaseagreement with a third pady, to sell its 100%ownership with Realitni developersk6,a.s. and its subsidiaries(note 35). The closing datewas 19 December 2008. As part of the sale agreement,Gambella Holdings Limited provided guaranteesto indernni! the buyer for all losses and damageswhich might result from (a) breach, inconectness or untruthfulness of any representation or guarantees made by Gambella Holdings Limited, (b) breachof non performing obligationsof GambellaHoldings Limitec as specifiedin the salesand purchase agreement, (c) the potentialclaims broughtagainst one of the disposedentity's subsidiarieswith respect to the sale of division of Gambella's subsidiaryto the said counterparty,(d) invalidity of respectiveownership titles over the land and assetsofthe disposedentity and its subsidiaries. The provided guaranteesinclude a bank guaranteefor the amountof Euro 24.108.936(CZK 638.043 thousand)which is valid until Jantary 2012. The said bank guaranteecan be extendedfor a period of three years if a notified claim exists two months prior to the expiration of the bank guarantee. The same ru1es for extension apply to all guarantees provided by GambellaHoldings Limited excludingthe bank guarantee;however the period for extensionis four years. The guaranteesprovided by GambellaHoldings Limited for the matters specified above are the actual losses which the buyer may suffer and up to the amountof total proceeds.

Penta Holding Lirnited being the pfient of Penta InvestmentsLimited provided a back to back guaranteeto the financial institution which provided the bank guaranteesmentioned in the precedingparagraph above with respectto the businesstransaction

63 PENTA IN\'ESTMENTSLIMITED NOTf,STO THE PARENTCOMPANY SEPARATEFINANCIAL STATEMENTS FOR THE YEAR ENDED31 DECEMBER2OO9 'r7 Events after the reporting period

(i) Acquisition of RHP DEVELOPMENT s.r.o. Penta InvestmentsLimited, through its subsidiary company DENDA BEHEER 8.V., acquired 100% of RFIP DEVELOPMENT s.r.o., the owner of eesk6 Typografrebuilding complex (former Rud6 Prrivo building). The said property is situated in Prague I between Na Florenci Street and Na Poiidi Street and it is the Group's first project in real estate development in the Czech Republic. On the site of the current building, the Group plans to build a new administrativecentre.

The sharepurchase agreement was signedon 20 January2010, for a total considerationof Euro 10.493.154out of which Euro 8.493.154has alreadybeen paid in two instalmentsand the payment of the remaining Euro 2.000.000has been deferred to January 2013. The acquisitioncost also includessettlement of liabilities towardsthe previousowner in the total amountof Euro 1.270.400.The acquisitionwas fully financedby the Group's own funds.As part of the purchase transaction there was an agreement on the extension of the payment period andan increaseof the existingbank loan in the amountof Euro 28.000.000.

Based on managementaccounts of the acquiree,the net asset value on acquisition date amountsto Evo 3.225.014(85.350.000 CZK). The Group is currently conductinga fair value exerciseto determinethe fair values of the underlying assetsand liabilities of RHP DEVELOPMENT s.r.o.

(ir) Acquisition of PR market, s.r.o. Penta Investments Limited, though its subsidiary company KELADONE a.s., signed the agreementfor the acquisitionof 100% stake in PR market, s.r.o. (PR Market). Under the brand Koruna, PR market operates 45 supelmarkets in the Czech Republic (Northem Moravia and Silesiaregion). The sharepurchase agreement was signedon 10 February2010, for a total considerationof Euro 10.916.305(288.900.000 CZK). The acquisitionwas partly financedby the Group's own funds and by bark borrowing obtained in the total amount of Elrro 6.228.982 (164.850.000CZK).

The transactionwas subjectto the approvalof the CzechAntimonopoly Offrce, which was obtainedon 8 March 2010.

Based on managementaccounts of the acquiree,the net assetvalue on acquisition date amountedto Evro 2.746.155(72.677.000 CZK). The Group is currently conductinga fair value exerciseto determinethe faft values on the underlying assetsand liabilities of PR Market.

64 PENTA INVESTMENTS LIMITED NOTES TO THE PARENT COMPAI{Y SEPARATE FINANCIAL STATEMENTS FOR TIIE YEAR ENDED 31 DECEMBER 2OO9

27 Events after the reporting period (continued)

(iii)' Acquisition of MEZSERVIS spol s.r'o' Penta InvestmentsLimited, tkough its subsidiarycompany vinipreg a.s., acquired 100% stake in czech-basedelectronics production, installation and repair companyMEZSERViS spols.r.o.

A general agre€mentwas signed on 16 December2010 followed by the sharepurchase agiement signedon 24 April 2010, for a total considerationofEuro 3.400.718(90.000.000 cZK) plus a contingentconsiderarion of 50% of 2010 EBITDA. The acquisitionwas partly financedby the Group's own funds and by bank bonowing obtainedin the total amountof F;itro2.720.57 4 (72.000.000 CZK).

The transactionwas subjectto the approvalof the CzechAntimonopoly Office, which was obtainedon 2 February2010.

Based on managementaccounts of the acquiree,the net assetvalue as at acquisitiondate amountedto Euro 5.727.073(151.567.000 CZK).

(iv) Acquisition of Zelezniin6 zdravotnictvo Ko5ice, s.r.o. and NOVAPHARM, s'r.o PentaInvestments Limited, through its subsidiarycompany ProCare, a.s., acquired a 100% stakein Zelemidndzdravotnictvo KoSice, s.r.o. and,a 5lo/ostake in NOVAPHARM, s.r.o.for a considerationof Euro 6.639 and Euro 620.000respectively plus settlementof liabilities towardsthe previousowner in the net amountof Euro 763.808and Euro 915.821.

The sharepurchase agreements were signedon 1 June2010, andthe acquisitionwas financed by Groupsown funds. The transaction was subject to the approval of the Antimonopoly Office of the Slovak Republic,which was obtainedon 17 May 2010.

(v) Acquisitionof KAISER FOOD lilelmiszeripariKft Penta lnvestmentsLimited is aiming to continue with the growth of its meat processing business in the Hungarian market by acquiring through Debreceni Csopod Hrisipari, Kft. the 97.3% stakein the companyKAISER FOOD ElelmiszeripariKft.

The share purchaseagreement was signed on 8 June 2010, for a considerationof Euro 8.414.562 (HUF 2.279.000.000)which is subject to fi.rrtherprice adjustmentsresulting primarily from half year performance of the company.

An approval from the Hungarian Bureau of Antitrust Regulation is a condition for the successfulfinalization of the transaction.

b) PENTAINYESTMENTS LIMITED NOTESTO THE PARENTCOMPANY SEPARATEFINANCIAL STATEMENTS FOR THE YEAR ENDED31 DECEMBER2OO9

27 Eventsafter the reportingperiod (continued)

(vi) Acquisitionoflglokrak Sp.Z o.o. The Groupcontinues the penehation of thePolish market and has successfully finalised the acquisitionof Iglokak Sp.Z o.o.and its subsidiaries(Iglokak Group)by purchasinga 100% stakein the group throughits subsidiarycompany Iglo HoldingsLimited (previously AbrastorHoldings Limited). The considerationfor the purchaseof the Iglokak Group amountedto Euro 47.420.861(169.632.950 PLN). The Iglokak Groupis a leaderin the segmentof productionand distribution of frozenfood and ice-cream in southpoland. The sharepurchase agreement was signedon 9 July 2010,and the acquisitionwas fully financedby Groupsown funds.

Thefinal approvalfrom the Polish Antimonopoly Office was obtained on 29 May 2010.

(vii) Disposalof03 Invest,a.s. On 17 March 2010, the Group concludedan agreementto disposeof 100% of its shareholdingin 03 lnvest,a.s. for a total considerationof Euro 1.545.742.The net liabiliw valueas at disposaldate amounts to Euro137.074.

(viii) Increaseof sharecapital The shareholdershave resolved, by way of a specialresolution passed on 7 April 2010,to increasethe sharecapital of the Companyby issuingone new ordinaryshare at a share premiumof Euro 111.699.998.The new sharewas issuedto its parent,Penta Holding Limited.

(vii) Declarationof dividends On 19 June2010 ZSNP SCO receiveda dividendfrom associateenriry Slovalco,a.s. amountingto US$40.200.000. ZSNP a.s.being the parentof ZSNP SCO and indirectly holdsa significantpercentage of the associataeSlovalco, a.s., declared a dividendto the Companyof Euro3 4 .09I .729 on thesame day.

On 4 August2010, the subsidiarycompany, Lorea Investments Limited, declared a dividend of Euro5.057.457 (CZK 125.096.189)to the Company.

66