MEANING OF MIZUHO ESTABLISHED PRINCIPAL SHAREHOLDERS ADDRESS

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2 MEANING OF MIZUHO Mizuho means "a fresh harvest", and Japan was poetically referred to as "Mizuho country" - "fruitful country". ESTABLISHED 20 October 1976 PRINCIPAL SHAREHOLDERS Mizuho Securities Co., Ltd., Tokyo Otemachi First Square 1-5-1, Otemachi Chiyoda-ku Tokyo Japan Mizuho Corporate Bank, Ltd , Marunouchi Chiyoda-ku Tokyo Japan ADDRESS Mizuho Bank (Switzerland) Ltd Loewenstrasse Zurich / Switzerland Telephone: +41(0) Telefax: +41(0) Page - 2 -

3 CONTENTS Board of Directors 04 Management 05 Annual Report 2011/ Balance Sheet as at 31 March 2012 (before allocation of profits) 07 Income Statement for the year ended on 31 March Appropriation of retained earnings proposed by the Board of Directors 08 Cash Flow Statement for the year ended on 31 March Notes to the financial statements 1. Comments on business activity and staff numbers Accounting and valuation policies Information on the balance sheet 3.1 Analysis of collateral for loans, advances and off-balance sheet transactions Securities and precious metals trading portfolios, financial investments and participations Significant participations Fixed assets and participations Other Assets and Liabilities Assets pledged to secure own liabilities and assets subject to ownership reservation Liabilities against own pension plans Valuation adjustments and provisions/reserve for general banking risks Share capital Statement of changes in shareholders' equity b Accountable and required own resources as per 31 March Maturity structure of current assets and liabilities Due from and due to affiliated entities and loans and exposures to members of the bank's governing bodies Assets/Liabilities by domestic and foreign origin Assets by countries respectively country groups Balance sheet by currencies Information on off balance transactions 4.1 Breakdown of contingent liabilities Breakdown of irrevocable commitments Outstanding derivative instruments (Trading instruments) Breakdown of fiduciary transactions Customer assets Information on profit and loss accounts 5.2 Analysis of results from trading operations Analysis of personnel expenses Analysis of other operating expenses Other information on extraordinary items and material release of hidden reserves 21 Auditors' Report 22 Page - 3 -

4 Board of Directors AKIRA KAWAMURA Chairman of the Board of Directors (until 9 May 2011) MITSUO HIRAKATA Chairman of the Board of Directors (as from 9 May 2011) DR. ROBERT KARRER Vice Chairman of the Board of Directors (until 9 May 2011) BIGNIA VIELI TROEHLER Vice Chairwoman of the Board of Directors (as from 9 May 2011) TOSHIO YUKI Member of the Board of Directors (until 9 May 2011) MASATO TAKANO Member of the Board of Directors (as from 9 May 2011) Auditors ERNST & YOUNG AG, ZURICH Page - 4 -

5 Management IWAO TAKAI BRUNO MARTY President Executive Vice President NIKLAUS TSCHIRKY DAVID TYE Senior Vice President Senior Vice President PETER ANNELER IRENE DEL NEGRO ROMAN GÜNTER SHU KITANO AKITAKA NINOMIYA LUISA SANCHEZ ENRIQUE VILLAREAL FEE KOOI YEE Vice President Vice President Vice President Vice President Vice President Vice President Vice President Vice President Page - 5 -

6 Annual Report 2011/2012 This report refers to the financial year 2011/2012, which encompasses the period from 1 April 2011 to 31 March Main activities of Mizuho Bank (Switzerland) Ltd Mizuho Bank (Switzerland) Ltd exclusively concentrates its activities on Wealth Management for private clients and on Institutional Asset Management. The Balance Sheet of Mizuho Bank (Switzerland) Ltd The balance sheet total has increased from Swiss Francs million to Swiss Francs million. This was mainly due to the increase of the balance sheet item Due to customers, other by Swiss Francs million. The financial investments were decreased by Swiss Francs 5.6 million to Swiss Francs million. Our capital and our reserves are exclusively invested in Swiss Franc denominated bonds. Income Statement of Mizuho Bank (Switzerland) Ltd In the financial year, the realised annual loss amounted to Swiss Francs 150,386. As in the previous year, our main source of income was interest income (Swiss Francs 4.2 million), largely from our financial investments and money market placements, followed by commission income (Swiss Francs 2.1 million) and income from trading operations (Swiss Francs 0.7 million). Income from trading operations was generated in foreign exchange markets. The Board of Directors proposes to the General Meeting of Shareholders to carry forward the retained earnings of the financial year (consisting of net loss of current year and retained earnings carried forward from previous year). The total operating expenses amounted to Swiss Francs 6.8 million which is Swiss Francs 0.1 million higher than last year s figures. In the context of a capital efficiency scheme of the Mizuho Securities Co., Ltd., Tokyo an extraordinary dividend of Swiss Francs 10 million has been paid to the shareholders in March Outlook of Mizuho Bank (Switzerland) Ltd By intensifying the cooperation with the Mizuho network, one of the world's largest financial institutions, and by continuing to offer our clients quality products and services at competitive prices, we plan to increase the asset base and the income sources of the bank. By so doing, we are convinced that we will be able to strengthen the profitability of our bank. In the name of the Board of Directors Page - 6 -

7 Balance Sheet as at 31 March 2012 (before allocation of profits) Assets Cash 21,690 5,499 16,191 Due from banks 197,307 96, ,896 Due from customers 50,978 40,930 10,048 Financial investments 140, ,701-5,581 Fixed assets Accrued income and prepaid expenses 2,831 2, Other assets 2,607 1,126 1,482 Total Assets 415, , ,186 Total due from group companies and significant shareholders Current Year Previous Year Change 171,599 80,496 91,103 Liabilities and Shareholders' Equity Due to banks 14,703 2,406 12,297 Due to customers, other 260, , ,800 Accrued expenses and deferred income Other liabilities 3,250 1,775 1,475 Valuation adjustments and provisions Paid-in share capital 53,132 53,132 Legal reserves from capital contributions 2,500 2,500 General legal reserves from retained income 26,566 26,566 Other reserves from capital contributions 2,500-2,500 Other reserves from retained income 51,423 61,423-10,000 Retained earnings brought forward 2,391 2, Net income / loss Total Liabilities and Shareholders' Equity 415, , ,186 Total due to group companies and significant shareholders Off-balance sheet transactions Contingent liabilities Irrevocable commitments Derivative financial instruments - Positive replacement values 2, ,400 - Negative replacement values 2, ,407 - Contract value 130,622 78,021 52,601 Fiduciary transactions 218, ,756-71,006 Page - 7 -

8 Income Statement for the year ended on 31 March 2012 Income and expenses from ordinary banking activities Current Year Previous Year Change Income from interest activities - Interest and discount income Interest and dividend income on trading portfolios - Interest and dividend income on financial investments 3,300 3, Interest expenses Net interest income (sub-total) 4,217 4, Income from commission and service fee activities - Commission income on lending activities Commission income on securities and investment transactions 2,215 2, Commission income on other services Commission expenses Income from commission and service fee activities (sub-total) 2,139 2, Income from trading operations Operating expenses - Personnel expenses -4,769-4, Other operating expenses -2,074-2, Total operating expenses (sub-total) -6,843-6, Gross Income Depreciation and write-offs on non-current assets Valuation adjustments, provisions and losses Extraordinary income Extraordinary expenses Taxes Net income / loss Appropriation of retained earnings proposed by the Board of Directors Allocation of retained earnings Net income / loss Retained earnings 2,391 2, Total retained earnings 2,241 2, Current Year Previous Year Change Allocation of retained earnings Allocation to General legal reserves from retained Income Allocation to Other reserves from retained Income Dividend payments Retained earnings brought forward 2,241 2, Page - 8 -

9 Cash Flow Statement for the year ended on 31 March 2012 Current Year Previous Year Current Year Previous Year in 1'000 CHF Cash flow from operating income (internal sources) 253 1,195 Net income Depreciation and write-offs on non-current assets Valuation adjustments and provisions Accrued income and prepaid expenses Accrued expenses and deferred income Operating non cash related result from Financial investments Cash flow from own resources activities 10,000 Capital decrease General legal reserves from captial contributions 2,500 Other reserves from capital contributions 2,500 Reserves for general banking risks Dividend payment 10,000 Cash flow from investment activities Other fixed assets Cash flow from banking operations Medium and long term operations (more than 1 year) Due to banks - Other liabilities 1,475 4,829 - Due from banks - Due from customers - Financial investments - Other assets 4,725 1,482 Short-term operations 26,126 7,601 - Money market instruments - Due to banks 12,297 9,572 - Due to customers 119,800 14,974 - Due from banks 100,896 2,826 - Due from customers 19,772 10,048 - Financial investments 4,973 - Securities and precious metals trading portfolios Liquidity 6,587 16,191 - Cash 6,587 16,191 Source of funds Application of funds Page - 9 -

10 Notes to the financial statements 1. Comments on business activity and staff numbers General Mizuho Bank (Switzerland) Ltd is an internationally active financial institution. The company, domiciled in Zurich, is active as a bank as well as a securities broker. The total number of staff is, after part-time adjustment, 25 (previous year 24). The following business activities are conducted by the Mizuho Bank (Switzerland) Ltd. Balance sheet activities Interest related activities are an important source of revenue for Mizuho Bank (Switzerland) Ltd. Global Wealth Management continued to be the core business of the bank. In the private banking business, loans are usually granted against collateral. Commercial loans are granted against or without collateral. Interbank business is conducted mainly within the short-term range. Long-term financial requirements are covered when necessary in the capital market. The bank holds a strategic portfolio of securities with a short- to mid-term investment horizon in its financial investment. Trading Mizuho Bank (Switzerland) Ltd offers the execution and processing of all common banking transactions to their customers. Commissions and service activities The major part of the commission and service business is derived from portfolio management, fiduciary deposits, payments as well as securities and derivative trading for customers. Additionally, Mizuho Bank (Switzerland) Ltd renders services in asset management and the management and administration of investment funds. The services are utilized by private and institutional customers. Risk management The credit and market risk policy, which are examined by the bank's management annually for its suitability, form the basis for the risk management. Explicit limits are set for individual risks and their observance is constantly monitored. The responsibility for risk control is separated on a management level from the responsibility for the trading department. The management is regularly informed by means of a level-adequate management information system (MIS) about assets, financial situation, liquidity and earnings as well as the associated risks. Risk assessment The Board of Directors has discussed the material risks of the institution at the meeting on 13 September 2011 and determined adequate measures. We refer to following remarks for specifications of the related risks. Credit risks All commitments from which a loss can develop, if counter parties are not able to fulfill their obligations, contain credit risks. Credit risks are limited by means of diversification of risks, quality requirements and coverage margins. For credit approval process, where the creditworthiness and financial capability is judged, a risk-oriented authorization order exists. The appropriate periodic efficient monitoring of credit risks during their entire lifetime is examined with continuous control of the recoverability of the collateral. For the measurement and management of credit risk, the bank classifies its assets in a four level rating system. With this system the risks can be better estimated when granting a loan and the average possible losses in the future can be taken into consideration in determining the conditions for the individual counterparty. Interest rate risks The risks of interest rate changes from in-balance and off-balance positions are supervised and managed by the ALM-committee of the bank. The control is based on the market interest method and focuses on the net present value of the own capital. Based on these fundamentals and from compiled interest forecast, the ALM-committee decides regularly over hedging measures to be taken. As hedging instruments options, futures and interest rate swaps are available. There were no hedge positions during the reporting year. Other market risks The further market risks, which mainly contain position risks from foreign currencies, are restricted with limits. The positions are controlled on a daily basis. Liquidity risks The liquidity is supervised and ensured in the context of the banking related legal regulations. Own positions of the bank are examined regularly for tradability. Operational risks Operational risks are defined as "dangers of direct or indirect losses, caused by the inadequacy or the failure of internal procedures, people and systems or of external events". They are limited by internal regulations and guidelines for organsation and control. The internal audit examines the effectiveness and the adequacy of the internal control system on a regular basis and reports directly on its work to the board of directors. Compliance and legal risks The Compliance Officer ensures that the business activity is in compliance with the actual regulatory requirements and the exercise of due diligence of a financial intermediary. This position is responsible for the examination of requirements and developments on the part of the supervisory authority, the legislator or other organizations. In addition it ensures for the fact that the instructions and regulations are observed and kept up to date with regulatory developments. Page

11 2. Accounting and valuation policies Basis of presentation The provisions on accounting, recording and valuation contained in the Swiss Code of Obligations, the Federal Law on Banks and Savings Banks and its Ordinance, the statutory regulations as well as the guidelines of the Swiss Financial Market Supervisory Authorities FINMA are adhered to. The financial statement conveys an appropriate picture of the total assets, the financial situation and earnings of the bank in agreement with the accounting regulations in effect for banks and securities brokers. Recording of Transactions Business transactions are recorded in the balance sheet of the bank at the trade day and are evaluated starting from this time for the profit and loss calculation. Foreign currency translation Transactions in foreign currencies are booked at the respective daily foreign exchange rates. Monetary net assets are converted on balance sheet date to the respective current foreign exchange rate and exchange differences are booked in profit and loss accordingly. Differences of the exchange rates between the conclusion of the business and its fulfillment are booked in profit and loss. The following exchange rates were used: Current year Previous year Yearend rates average Yearend rates average USD EUR GBP JPY General valuation principles The detailed positions stated in the balance sheet are evaluated individually (individual valuation). The assets and liabilities in foreign currencies as well as positions for exchange transactions are evaluated at the middle rates applicable as at balance sheet date. Liquid assets, liabilities The balances are capitalized at nominal value. Due from banks The balances are capitalized at nominal value and at cost values respectively less individual value adjustments for assets at risk. Loans (Due from customers) Loans at risk, i.e. loans on which it is improbable that the debtor can fulfill its future obligations, are evaluated on an individual basis and the deterioration is covered by individual value adjustments. Off-balance transactions, like fixed acceptances, guarantees or derivatives of financial instruments, are also included in this evaluation. Lendings are classified as doubtful at the latest if the contractually stipulated payments for principal and/or interest are overdue for more than 90 days. Interest, which is due for more than 90 days, is considered as overdue. Overdue interest and interest, whose receipt is doubtful, are not recognized as income, but are assigned directly to the value adjustments and provisions. Lendings are accounted as non interest bearing, if the receipt of the interest is doubtful in such a manner that the accruals are not considered reasonable anymore. The individual value adjustments are set off directly from the corresponding asset positions. The impairment is measured by comparing the difference between the book value of the receivable and the presumable actual value with consideration of the counterparty risk and the net proceeds from the sale of any collateral. If a receivable amount is classified as totally or partly irrecoverably or a renouncement is granted, the write-off of the receivable takes place by debiting the appropriate value adjustment. Recoveries from receivables written-off in former periods are credited directly to the value adjustments for credit risks. Financial investments Bonds acquired with the intention of being held up to final maturity are evaluated according to the Accrual method. The agio and disagio of the balance sheet position respectively will be accrued for the remaining period until final maturity. Realized profits or losses from premature sale or repayment will be accrued for the remaining period, i.e. until original final maturity. Provided that they are lasting and material, depreciations and subsequent increases in value related to changes of the credit-worthiness of the securities are stated under "Other ordinary expenses" and "Other ordinary income" respectively. Page

12 Fixed assets If investments into new fixed assets are used for more than one financial period and exceed the minimum of the capitalization limit, they are capitalized and evaluated in accordance with the acquisition value principle. During the subsequent evaluation, fixed assets are stated by their acquisition value, less the accumulated depreciations. The depreciations take place as planned over the estimated useful life of the fixed assets. The intrinsic value is checked on an annual basis. If the result of this check shows a change in the useful economic life or deterioration, the net book value will be depreciated over the remaining useful economic life or an extraordinary depreciation will be made. Scheduled and possible additional extraordinary depreciations are booked through profit and loss in the position "depreciation of fixed assets". If the reason for the extraordinary depreciation is omitted, an appropriate write-up takes place. The estimated useful economic life for individual fixed assets categories are as follows: - other fixed assets 10 years max. - software, IT and communication installations 5 years max. Realized profits from the sale of fixed assets are booked through "extraordinary income", realized losses through "extraordinary expenses". Pension plan Mizuho Bank (Switzerland) Ltd maintains pension plans for its local staff. These pension plans are defined contribution plans. The liabilities from the pension plans as well as the assets serving as coverage are separated into legally independent trusts managed by insurance companies. Organization, management and financing of the pension plans are in line with the laws, the charters of foundations as well as the valid pension plan regulations. Taxes Current taxes are recurring, usually annual income taxes and taxes on capital. Unique or transaction-referred taxes are not a component of the current taxes. Current taxes on the earnings of the financial period are calculated according the local fiscal profit accounting regulations and stated as expenses of the financial period, in which the appropriate profits result. From the current profit owed direct taxes and the taxes on capital are booked as accruals in liabilities. Contingent liabilities, irrevocable commitments, deposit and additional payment obligations The information shown in the off-balance sheet is stated at nominal value. For foreseeable risks provisions are established in liabilities of the balance sheet. Valuation adjustments and provisions For all recognizable loss risks individual value adjustments and provisions are established according to the caution principle. Value adjustments and provisions that are economically no longer necessary in an accounting period will be liquidated through profit and loss. Individual value adjustments are deducted directly from the corresponding position of the assets. Individual value adjustments and provisions for other risks are stated under this balance sheet position. Derivative financial instruments Regarding the business principles and risk management, reference is made to the explanations on the business activities. The evaluation of all derivative financial instruments of the bank takes place to the fair value. They are accounted as positive or negative replacement values under "other assets" and "other liabilities" respectively. Fair value is based on market prices, price quotation of brokers, discounted cash-flow or option price models. Realized and unrealised gains from transactions with derivative financial instruments, which are entered for trading purposes, are stated in the position "income from the trading operations". Accounting and valuation policies The accounting and valuation policies have not been changed compared to the previous year. Page

13 3. Information on the balance sheet 3.1 Analysis of collateral for loans, advances and off-balance sheet transactions Loans Due from customers 50,978 50,978 Total Loans 50,978 50,978 Previous year 40,930 40,930 Type of collateral Mortgage Other Without collateral collateral collateral Total in 1'000 CHF Off-balance sheet transactions Contingent liabilities Irrevocable commitments Total off-balance sheet transactions Previous year ,141 Gross estimated Net Individual amount due gain from amount due valuation collateral adjustment Non-performing loans No non-performing loans in the reporting or previous year in 1'000 CHF 3.2 Securities and precious metals trading portfolios, financial investments and participations Securities and precious metals trading portfolios No positions in the reporting or previous year Current Year in 1'000 CHF Previous Year in 1'000 CHF Financial investments Book value Fair Value Current Year Previous Year Current Year Previous Year in 1'000 CHF Interest-bearing securities and rights - Exchange-listed 140, , , ,599 - Unlisted Total financial investments 140, , , ,599 - of which qualified for repo transactions according to liquidity regulation 130, , , ,906 - of which held to maturity 140, , , , Significant participations At the balance sheet date Mizuho Bank (Switzerland) Ltd held no significant participations. Page

14 3.4 Fixed assets and participations Historical Write-offs/ Book value Additions Write-offs/ Book value cost Accumulated end of depreciation end of depreciation previous year current year Other fixed assets (without Software) 2,856-2, Software 2,405-2, Total fixed assets 5,261-5, Fire insurance value of other fixed assets 3, Other Assets and Liabilities Replacement values of derivative financial instruments Contracts for own account - Trading portfolio - Others 2,054 2, Current year Previous year Other assets Other liabilities Other assets Other liabilities in 1'000 CHF Total replacement values 2,054 2, Balancing account - Indirect taxes Settlement accounts Residual assets and liabilities Total other assets and liabilities 2,607 3,250 1,126 1, Assets pledged to secure own liabilities and assets subject to ownership reservation At the balance sheet date the following assets were pledged or otherwise not freely disposable: Financial investments 12,119 17,164 Due from banks Current year in 1'000 CHF Previous year in 1'000 CHF At the balance sheet date there were no securities lending and borrowing transactions or repo-transactions outstanding. The pledged positions were assigned as collateral for securities settlements with custodian banks or for foreign exchange and derivative transactions with third parties. 3.7 Liabilities against own pension plans There are no liabilities against the company pension plan at the end of the reporting year outstanding. The pension plan qualifies as defined contribution plan. The company pension plan is guaranteed by the Baloise collective foundation for mandatory pension plans in Basle (Baloise collective foundation). There are no substantial reserves for the contribution to the pension plan by the employer available. For coverage of the benefit commitment the collective foundation has reinsured the risks with the Basle Life-insurance-association. The foundation is policyholder and beneficiary. An excess of coverage or a deficient coverage has no economic effect to the bank. Economic benefit/economic commitment and pension plan expenses Excess / Benefit Change Accrued Pension Pension deficient of the compared contributions plan plan coverage Bank to previous expenses expenses year current previous year year Baloise collective foundation Total Page

15 3.9 Valuation adjustments and provisions/reserve for general banking risks Balance, Specific Change in New Reversals Balance, end of usage definition of positions credited to end of preceding purpose charged to income current year (reclassification) income statement year statement Valuation adjustments and provisions for loan loss (credit and country risks) Other provisions Total valuation adjustment and provisions Share capital Current year Previous year Total Number Dividend Total Number Dividend nominal of units bearing nominal of units bearing value capital value capital in 1'000 CHF Share capital 37, ,500 37,250 37, ,500 37,250 Participation certificate capital 15, ,500 15,882 15, ,500 15,882 Total Capital 53, ,000 53,132 53, ,000 53,132 Current year Previous year Dividend Participation Nominal Participation bearing in % in % capital in 1'000 CHF in 1'000 CHF Significant shareholders with voting rights Mizuho Securities Co., Ltd. Tokyo* 26,075 70% 26,075 70% Mizuho Corporate Bank, Ltd. Tokyo (100% MFG) 11,175 30% 11,175 30% Significant shareholders without voting rights Mizuho Securities Co., Ltd. Tokyo* 11,117 70% 11,117 70% Mizuho Corporate Bank, Ltd. Tokyo (100% MFG) 4,765 30% 4,765 30% * 94,66% owned by Mizuho Financial Group (MFG), Tokyo (quoted, widely diversified public-limited company) 3.11 Statement of changes in shareholders' equity Shareholders' equity, at the beginning of current year in 1'000 CHF Paid-in share capital 53,132 General legal reserves 26,566 Other reserves from capital contributions 2,500 Other reserves from retained income 61,423 Retained earnings 2,391 Total shareholders' equity, at the beginning of current year (before profit distribution) - Reduction of other reserves -2,500 + Appropriation to legal reserves 2,500 - Extraordinary dividend payment -10,000 - Net income / loss -150 Total shareholders' equity, at end of current year 135,862 Thereof Paid-in share capital 53,132 Legal reserves from capital contributions 2,500 General legal reserves from retained income 26,566 Other reserves from capital contributions Other reserves from retained income 51,423 Retained earnings 2, ,012 Page

16 3.11b Accountable and required own resources as per 31 March Total eligible capital - Capital requirements for credit risk under the Swiss standardised approach - Capital requirements for non-counterparty related risks - Capital requirements for market risks - Capital requirements for operational risks (BIA - basic indicator approach) - Reductions in capital requirements - Total minimum capital requirements Surplus of capital Current year Previous year in 1'000 CHF in 1'000 CHF 136, ,698 11,337 7, ,168 1, ,150 8, , , Maturity structure of current assets and liabilities Maturities At sight Within Within Within After Total 3 month 3 to months 5 years month to 5 years Current assets Cash 21,690 21,690 Due from banks 35,196 90,611 71, ,307 Due from customers 11,815 39,163 50,978 Securities and precious metals trading portfolios Financial investments 25, ,398 9, ,119 Total current assets 68, ,774 96, ,398 9, ,094 Previous year 57,233 85,606 12, ,667 28, ,540 Liabilities Due to banks 14,702 14,702 Due to customers, other 260, ,970 Total liabilities 275, ,672 Previous year 143, , Due from and due to affiliated entities and loans and exposures to members of the bank's governing bodies Due from affiliated entities 8, ,870 Due from member of the bank's governing bodies Due to affiliated entities Due to member of the bank's governing bodies Current year Previous year Change Throughout the entire financial year money market transactions have been maintained within the group companies and significant shareholders. These transactions were accomplished to the banks general conditions, as they were also applicable to third parties. Page

17 3.14 Assets/Liabilities by domestic and foreign origin Current year Previous year Domestic Foreign Domestic Foreign in 1'000 CHF Assets Cash 21,690 5,499 Due from banks 5, ,500 2,830 93,580 Due from customers 11,993 38,985 10,264 30,666 Financial investments 30, ,956 30, ,145 Fixed assets Accrued income and prepaid expenses 1,564 1,267 1,650 1,100 Other assets 585 2, Total assets 72, ,730 51, ,907 Liabilities and shareholders' equity Due to banks 12,192 2, ,403 Due to customers, other 76, ,497 14, ,344 Accrued expenses and deferred income Other liabilities 1,545 1,705 1, Valuation adjustments and provisions Share capital 53,132 53,132 Legal reserves from capital contributions 2,500 General legal reserves from retained income 26,566 26,566 Other reserves from capital contributions 2,500 Other reserves from retained income 51,423 61,423 Retained earnings 2,391 2,077 Net income / loss Total liabilities and shareholders' equity 227, , , , Assets by countries respectively country groups Current year Previous year in 1'000 CHF % share in 1'000 CHF % share Assets Switzerland 72, % 51, % Europe 242, % 130, % North- and Central America 25, % 25, % Latin America 4, % % Australia 25, % 25, % Japan 38, % 53, % Asia 5, % 5, % Africa - 0.0% 5 0.0% Others 1, % 1, % Total assets 415, % 292, % Page

18 3.16 Balance sheet by currencies Currencies CHF USD EUR JPY Other Total Assets Cash 21, ,690 Due from banks 30,351 54,521 27,214 71,697 13, ,307 Due from customers 962 7,510 8,442 32,115 1,950 50,979 Securities and precious metals trading portfolios Financial investments 140, ,119 Fixed assets Accrued income and prepaid expenses 2, ,831 Other assets 2, ,607 Total in-balance assets 198,711 62,067 35, ,846 15, ,784 Due from forex forward transactions 3,540 2,743 6, ,400 14,882 Total assets 202,251 64,810 42, ,528 16, ,666 Liabilities and shareholders' equity Due to banks 2 2,467 8,667 3,567 14,703 Due to customers, other 58,850 59,551 26, ,743 11, ,970 Accrued expenses and deferred income Other liabilities 3, ,250 Valuation adjustments and provisions Reserves for general bank risks Share capital 53,132 53,132 Legal reserves from capital contributions 2,500 2,500 General legal reserves from retained income 26,566 26,566 Other reserves from retained income 51,423 51,423 Retained earnings 2,391 2,391 Net loss Total Liabilities and shareholders' equity 198,889 62,018 35, ,818 15, ,784 Liabilities from forex forward transactions 3,538 2,745 6, ,398 14,882 Total liabilities 202,427 64,763 42, ,501 16, ,666 Net position per currency Page

19 4. Information on off balance transactions 4.1 Breakdown of contingent liabilities Contingent liabilities - Credit guarantees Standby guarantees Current Year Previous Year Change Breakdown of irrevocable commitments Irrevocable commitments - Commitment to deposit insurance association Current Year Previous Year Change Outstanding derivative instruments (Trading instruments) Foreign exchange Forward contracts, including FRAs ,762 Options (OTC) 1,962 1, ,860 Total replacement values 2,054 2, ,622 Positive Negative Contract replacement replacement volume value value Analysis by counterparties Banks and derivative traders 13 2,034 65,216 Brokers Customers with collateral 2, ,406 Total as per balance sheet 2,054 2, ,622 Analysis by remaining periods Up to 3 months ,642 3 to 12 months 1,952 1, ,980 Total as per balance sheet 2,054 2, ,622 Total before consideration of netting agreements 2,054 2,044 Total after consideration of netting agreements 2,022 2,013 As per 31 March 2012 there were no own hedging positions. 4.4 Breakdown of fiduciary transactions Fiduciary transactions Fiduciary placements 218, ,756-71,006 - of which fiduciary placements with third parties 33,686 72,028-38,342 - of which fiduciary placements with group banks 185, ,728-32,664 Fiduciary loans Other fiduciary transactions Total fiduciary transactions 218, ,756-71,006 Current year Previous year Change Page

20 4.5 Customer assets Current year Previous year Change Type of customer assets - Assets of collective Investment instruments managed by the bank 37,974 36,234 1,740 - Discretionary assets 31,399 33,277-1,878 - Other customer assets 798, ,630-8,415 Total customer assets (incl. Double counts)* 867, ,141-8,553 - of which double counts 37,974 36,234 1,740 - Net New Assets increase/decrease** 19, ,767 * Current accounts, fiduciary transactions and all evaluated custody accounts Custody-only accounts are not considered ** Money transfer and delivery of securities Debited or credited interests are not considered Additional information about net new assets increase/decrease Comment: Net new assets increase from institutional investors Net new assets decrease (discretionary assets and other customer assets) Net New Assets increase Amount in 1'000 CHF 56,385-37,286 19,099 The Global Wealth Management Division of the bank had an increase in customer assets of Swiss Francs 19 million. By the strength of the Swiss Francs related to the other main trading currencies there was a valuation reduction of customer assets of Swiss Francs 20 million. Page

21 5. Information on profit and loss accounts 5.2 Analysis of results from trading operations Current year Previous year Change - Foreign exchange and banknotes Securities - Interest bearing instruments Total income from trading operations Analysis of personnel expenses Current year Previous year Change - Salaries -3,936-3, Social benefits Other personnel expenses Total personnel expenses -4,769-4, Analysis of other operating expenses Current year Previous year Change - Rent expenses Information technology, machinery, fixtures and fittings, vehicles and other facilities - Other business expenses Total other operating expenses -2,074-2, Other information on extraordinary items and material release of hidden reserves During the period under review no hidden reserves were created nor released. Page

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