VTG Finance S.A. VTG Aktiengesellschaft

Transcription

1 VTG Finance S.A. Luxembourg, Grand Duchy of Luxembourg 250,000,000 Undated Resettable Fixed Rate Subordinated Notes Issue price: 100%. with unconditional and irrevocable guarantee on a subordinated basis by VTG Aktiengesellschaft Hamburg, Federal Republic of Germany VTG Finance S.A., incorporated in the Grand Duchy of Luxembourg as a stock corporation (société anonyme) (the "Issuer") will issue on 26 January 2015 (the "Issue Date") Undated Resettable Fixed Rate Subordinated Notes (the "Notes") in an aggregate principal amount of 250,000,000 (the "Aggregate Principal Amount"). The Notes will be issued in bearer form in denominations of 1,000 (the "Specified Denomination") and will only be transferable in minimum aggregate principal amounts of 100,000 and any integral multiples of 1,000 in excess thereof. The Notes will be unconditionally and irrevocably guaranteed on a subordinated basis by VTG Aktiengesellschaft, Hamburg, a stock corporation incorporated in Germany (the "Guarantor", the "Company" or "VTG") pursuant to a subordinated guarantee (the "Subordinated Guarantee"). The respective obligations of (i) the Issuer under the Notes and (ii) the Guarantor under the Subordinated Guarantee constitute direct, unsecured and subordinated obligations of (i) the Issuer and (ii) the Guarantor, respectively, ranking pari passu among themselves, pari passu with all of the respective Parity Obligations and senior only to the respective Junior Obligations (each as defined in the terms and conditions of the Notes (the "Terms and Conditions") and the terms and conditions of the Subordinated Guarantee, as applicable). In the event of the liquidation or insolvency, or any other proceedings for the avoidance of insolvency, of, or against, the Issuer, the obligations under the Notes shall be fully subordinated to all other present and future obligations of the Issuer (except for Parity Obligations and Junior Obligations), whether subordinated or unsubordinated, except as otherwise provided by mandatory provisions of law or as expressly provided for by the terms of the relevant instrument so that in any such event no amounts shall be payable in respect of the Notes unless all claims that rank senior to the Notes have been satisfied in full. Further, in the event of the liquidation or insolvency, or any other proceedings for the avoidance of insolvency, of, or against, the Guarantor, the obligations under the Subordinated Guarantee shall be fully subordinated to all other present and future obligations of the Guarantor (except for Parity Obligations and Junior Obligations), whether subordinated or unsubordinated, except as otherwise provided by mandatory provisions of law or as expressly provided for by the terms of the relevant instrument so that in any such event no amounts shall be payable in respect of the Subordinated Guarantee unless all claims that rank senior to the Subordinated Guarantee have been satisfied in full. The Notes will bear interest on their aggregate principal amount from and including 26 January 2015 ("Interest Commencement Date") to but excluding 26 January 2020 (the "First Call Date") at a fixed rate of 5.00% per annum. Thereafter, and unless previously redeemed, the applicable Rate of Interest for each Interest Period (each as defined in the Terms and Conditions) for the period from (and including) the First Call Date to (but excluding) the date on which the Issuer redeems the Notes in accordance with the Terms and Conditions shall be the applicable annual swap rate for Euro swap transactions with a term of 5 years for the relevant Interest Period plus the Margin (as defined in the Terms and Conditions). Interest shall be scheduled to be paid annually in arrear on 26 January in each year (each an "Interest Payment Date") commencing on 26 January The Issuer is entitled to defer payments of any interest on any Interest Payment Date and may pay such Arrears of Interest (as defined in the Terms and Conditions) voluntarily at any time, but only will be obliged to pay such Arrears of Interest under certain circumstances as set out in the Terms and Conditions. The Notes do not have a maturity date. The Notes are redeemable by the Issuer at its discretion on the First Call Date or on any Interest Payment Date thereafter and, in each case as described in the Terms and Condition of the Notes. Additionally, if either a Gross-Up Event, an Accounting Event, a Tax Event or a Change of Control Event (each as defined in the Terms and Conditions) shall have occurred, the Issuer may call the Notes for redemption (in whole but not in part) at any time. If the Notes are called by the Issuer upon the occurrence of a Gross-up Event or a Change of Control Event, the Notes will be redeemed at an amount per Note equal to the Specified Denomination, plus any interest accrued on the Notes to (but excluding) the Redemption Date and the Change of Control Effective Date (each as defined in the Terms and Conditions), respectively, but yet unpaid and any Arrears of Interest. If the Notes are called upon the occurrence of an Accounting Event or a Tax Event or in the event that the Issuer, the Guarantor and/or any Subsidiary (as defined in the Terms and Conditions) of the Issuer or the Guarantor has, severally or jointly, purchased Notes equal to or in excess of 80% of the Aggregate Principal Amount of the Notes initially issued, the Notes will be redeemed (i) at an amount per Note equal to 101% of the Specified Denomination, plus any interest accrued on the Notes to (but excluding) the Redemption Date but yet unpaid and any Arrears of Interest payable pursuant to the Terms and Conditions on the specified Redemption Date if such redemption occurs prior to the First Call Date, or (ii) at an amount per Note equal to the Specified Denomination, plus any interest accrued on the Note to (but excluding) the Redemption Date but yet unpaid and any Arrears of Interest payable pursuant to the Terms and Conditions on the specified Redemption Date if such redemption occurs on or after the First Call Date. This offering circular (the "Offering Circular") constitutes a prospectus for the purpose of Part IV of the Luxembourg Law of 10 July 2005 on Prospectuses for Securities, as amended. Application has been made for admission of the Notes to the official list of the Luxembourg Stock Exchange and for trading on the Euro MTF market ("Euro MTF") operated by the Luxembourg Stock Exchange, which is a multilateral trading facility for the purposes of the Market and the Financial Instruments Directive 2004/39/EC, and therefore not an EU-regulated market. The Notes have been assigned the following securities codes: ISIN XS , Common Code , WKN A1ZVCJ. The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and may be offered and sold only outside the United States of America to Non-U.S. Persons in Offshore Transactions in reliance on Regulation S under the Securities Act.

2 2 This Offering Circular and any documents incorporated by reference herein or therein will be published in electronic form on the website of the Luxembourg Stock Exchange ( Investing in the Notes involves certain risks. For a discussion of certain significant factors affecting investments in the Notes, see "RISK FACTORS". An investment in the Notes is suitable only for financially sophisticated investors who are capable of evaluating the merits and risks of such investment and who have sufficient resources to be able to bear any losses which may result from such investment. Sole Lead Manager HSBC Co-Manager M.M.Warburg The date of this Offering Circular is 22 January 2015.

3 3 RESPONSIBILITY STATEMENT VTG Finance S.A. with its registered office in Luxembourg, Grand Duchy of Luxembourg and VTG Aktiengesellschaft with its registered office in Hamburg, Federal Republic of Germany are solely responsible for the information given in this Offering Circular. Each of the Issuer and the Guarantor hereby declares that, having taken all reasonable care to ensure that such is the case, the information contained in this Offering Circular for which it is responsible is, to the best of its knowledge, in accordance with the facts and contains no omission likely to affect its import. NOTICE This Offering Circular should be read and understood in conjunction with any other documents incorporated herein by reference. Each of the Issuer and the Guarantor has confirmed to HSBC Bank plc (the "Sole Lead Manager" or the "Lead Manager") that this Offering Circular contains all information with respect to the Issuer, the Guarantor and the Notes which is material in the context of the issue and offering of the Notes, the information contained herein with respect to the Issuer, the Guarantor and the Notes is accurate in all material respects and not misleading, the opinions and intentions expressed therein with respect to the Issuer and the Notes are honestly held, there are no other facts in with respect to the Issuer, the Guarantor or the Notes the omission of which would make the Offering Circular misleading in any material respect; and that all reasonable enquiries have been made to ascertain such facts and to verify the accuracy of all statements contained herein. No person has been authorised to give any information or to make any representations other than those contained in this Offering Circular and, if given or made, such information or representations must not be relied upon as having been authorised by or on behalf of the Issuer, the Guarantor or the Lead Manager. The Lead Manager has not independently verified the Offering Circular and it does not assume any responsibility for the accuracy of the information and statements contained in this Offering Circular and no representations express or implied are made by the Lead Manager or its affiliates as to the accuracy and completeness of the information and statements herein. Neither the delivery of this Offering Circular nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the financial situation of the Issuer since the date of this Offering Circular, or that the information herein is correct at any time since the date of this Offering Circular. Neither the Lead Manager nor any other person mentioned in this Offering Circular, except for the Issuer and the Guarantor, is responsible for the information contained in this Offering Circular or any other document incorporated herein by reference, and accordingly, and to the extent permitted by the laws of any relevant jurisdiction, none of these persons makes any representation or warranty or accepts any responsibility as to the accuracy and completeness of the information contained in any of these documents. The Lead Manager has not independently verified any such information and accepts no responsibility for the accuracy thereof. Each investor contemplating purchasing any Notes should make its own independent investigation of the financial condition and affairs, and its own appraisal of the creditworthiness of the Issuer and the Guarantor. This Offering Circular does not constitute an offer of Notes or an invitation by or on behalf of the Issuer, the Guarantor or the Lead Manager to purchase any Notes. Neither this Offering Circular nor any other information supplied in connection with the Notes should be considered as a recommendation by the Issuer, the Guarantor or the Lead Manager to a recipient hereof and thereof that such recipient should purchase any Notes. The language of the Offering Circular is English. The German version of the English language Terms and Conditions of the Notes are shown in the Offering Circular for additional information. The English version shall prevail over any part of this Offering Circular translated into the German language except for the Terms and Conditions of the Notes in respect of which the German text shall be controlling and legally binding. This Offering Circular reflects the status as of their respective dates of issue. Neither the delivery of this Offering Circular nor the offering, sale or delivery of the Notes shall, in any circumstances, create any implication that the information contained in such documents is accurate and complete subsequent to its respective date of issue or that there has been no adverse change in the financial situation of the Issuer or the Guarantor since such date or that any other information supplied in connection with the issue of the Notes is accurate at any time subsequent to the date on which it is supplied or, if different, the date indicated in the document containing the same.

4 4 The distribution of this Offering Circular and the offering, sale and delivery of the Notes in certain jurisdictions may be restricted by law. Persons into whose possession this Offering Circular comes are required by the Issuer, the Guarantor and the Lead Manager to inform themselves about and to observe any such restrictions. For a description of the restrictions applicable in the United States of America and its territories and the United Kingdom of Great Britain and Northern Ireland see "Selling Restrictions" on page 137 of this Offering Circular. In particular, the Notes have not been and will not be registered under the United States Notes Act of 1933, as amended, and are subject to tax law requirements of the United States of America; subject to certain exceptions, Notes may not be offered, sold or delivered within the United States of America or to United States persons. This Offering Circular may only be used for the purpose for which it has been published. It does not constitute an offer or an invitation to subscribe for or purchase any Notes. This Offering Circular may not be used for the purpose of an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not authorised or to any person to whom it is unlawful to make such an offer or solicitation. In connection with the issue of the Notes, HSBC Bank plc as the stabilising manager (the "Stabilisation Manager") (or persons acting on its behalf) may over-allot the Notes or effect transactions with a view to supporting the price of the Notes at a level higher than that which might otherwise prevail. However, there is no assurance that the Stabilisation Manager (or persons acting on its behalf) will undertake stabilisation action. Any stabilisation action may begin at any time after the adequate public disclosure of the terms of the offer of the Notes and, if begun, may be ended at any time, but it must end no later than the earlier of 30 days after the Issue Date of the Notes and 60 days after the date of the allotment of the Notes. Any stabilisation action or over-allotment must be conducted by the Stabilisation Manager (or person(s) acting on its behalf) in accordance with all applicable laws and rules. FORWARD-LOOKING STATEMENTS This Offering Circular contains certain forward-looking statements. A forward-looking statement is a statement that does not relate to historical facts and events. They are based on analyses or forecasts of future results and estimates of amounts not yet determinable or foreseeable. These forward-looking statements are identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will" and similar terms and phrases, including references and assumptions. This applies, in particular, to statements in this Offering Circular containing information on future earning capacity, plans and expectations regarding VTG's business and management, its growth and profitability, and general economic and regulatory conditions and other factors that affect it. Forward-looking statements in this Offering Circular are based on current estimates and assumptions that the Issuer makes to the best of its present knowledge. These forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results, including VTG Group's financial condition and results of operations, to differ materially from and be worse than results that have expressly or implicitly been assumed or described in these forward-looking statements. VTG Group's business is also subject to a number of risks and uncertainties that could cause a forward-looking statement, estimate or prediction in this Offering Circular to become inaccurate. Accordingly, investors are strongly advised to read the following sections of this Offering Circular: "Risk factors relating to the Issuer and the Guarantor", "Description of the Issuer" and "Description of the Guarantor and VTG Group". These sections include more detailed descriptions of factors that might have an impact on VTG Group's business and the markets in which it operates. In light of these risks, uncertainties and assumptions, future events described in this Offering Circular may not occur. In addition, none of the Issuer, the Guarantor or the Lead Manager assumes any obligation, except as required by law, to update any forward-looking statement or to conform these forward-looking statements to actual events or developments.

5 5 TABLE OF CONTENTS Page OVERVIEW OF THE NOTES... 6 RISK FACTORS TERMS AND CONDITIONS OF THE NOTES SUBORDINATED GUARANTEE DESCRIPTION OF THE ISSUER DESCRIPTION OF THE GUARANTOR AND VTG GROUP THE AAE ACQUISITION PRO-FORMA CONSOLIDATED FINANCIAL INFORMATION OF VTG AG FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER TAXATION SUBSCRIPTION AND SALE OF THE NOTES GENERAL INFORMATION DOCUMENTS INCORPORATED BY REFERENCE HISTORIC FINANCIAL INFORMATION RELATING TO AAE GROUP... A-0 NAMES AND ADDRESSES

6 6 OVERVIEW OF THE NOTES The following overview should be read in conjunction with, and is qualified in its entirety by, the detailed information appearing elsewhere in this Offering Circular. For a more detailed description of the Notes and the Subordinated Guarantee, please refer to the sections "Terms and Conditions of the Notes" and "Subordinated Guarantee" of this Offering Circular. For more information on the Issuer, its business and its financial conditions, please refer to the section "Description of the Issuer". For more information on the Guarantor, its business and its financial conditions, please refer to the section "Description of the Guarantor and VTG Group". In the event of any inconsistency between this "Overview of the Notes" and the information provided elsewhere in this Offering Circular, the latter shall prevail. Terms used in this overview and not otherwise defined shall have the meaning given to them in the Terms and Conditions of the Notes. Issuer Guarantor Notes Risk Factors Sole Lead Manager Co-Manager Paying Agent Principal Amount of the Notes Issue Price 100% VTG Finance S.A., Luxembourg. VTG Aktiengesellschaft, Hamburg. 250,000,000 Undated Resettable Fixed Rate Subordinated Notes with unconditional and irrevocable guarantee on a subordinated basis by VTG Aktiengesellschaft. There are certain factors that may affect the Issuer's and/or the Guarantor's ability to fulfil their obligations under the Notes and the Subordinated Guarantee, respectively. In addition, there are certain factors that are material for the purpose of assessing the risks associated with an investment in the Notes. These risks are set out under the section "Risk Factors" of this Offering Circular. HSBC Bank plc. M.M.Warburg & CO (AG & Co.) Kommanditgesellschaft auf Aktien. Pursuant to an agreement entered into between the Sole Lead Manager and the Co-Manager, the Co-Manager has agreed, subject to certain conditions, to procure, on behalf of investors, purchases from the Sole Lead Manager for a certain portion of the Notes. The Co-Manager has not subscribed, and will not subscribe, for Notes directly from the Issuer. HSBC Bank plc. 250,000,000. Issue Date of the Notes 26 January First Call Date 26 January Maturity Redemption at the Option of the Issuer Redemption following a Gross-up Event, an Accounting Event, a Tax Event or a Change The Notes have no scheduled maturity date and only provide for call and redemption rights at the sole discretion of the Issuer but not for termination rights at the option of the Holders. The Issuer may call and redeem the Notes (in whole but not in part) on the First Call Date or on any Interest Payment Date thereafter upon giving not less than 30 and not more than 60 days' notice. In the case such call notice is given, the Issuer shall redeem the Notes at an amount per Note equal to the Specified Denomination, plus any interest accrued on the Note to (but excluding) the Redemption Date (as specified in the Notice) but yet unpaid and any Arrears of Interest payable on the specified Redemption Date (each as defined in the Terms and Conditions). If either a Gross-up Event, an Accounting Event or a Tax Event (each as defined in the Terms and Conditions) shall have occurred, the Issuer may call the Notes for redemption (in whole but not in part) at any time upon giving of not less than 30 and not more than 60 days' notice. In this case the Issuer shall redeem the Notes on the Redemption Date

7 7 of Control Event Redemption in the Case of Minimal Outstanding Aggregate Principal Amount Specified Denomination specified in the notice as follows: (i) if the Notes are called by the Issuer upon the occurrence of a Gross-up Event, the Notes will be redeemed at an amount per Note equal to the Specified Denomination, plus any interest accrued on the Note to (but excluding) the Redemption Date but yet unpaid and any Arrears of Interest on the specified Redemption Date; or (ii) if the Notes are called upon the occurrence of an Accounting Event or a Tax Event the Notes will be redeemed (x) at an amount per Note equal to 101% of the Specified Denomination, plus any interest accrued on the Note to (but excluding) the Redemption Date but yet unpaid and any Arrears of Interest payable on the specified Redemption Date if such redemption occurs prior to the First Call Date, or (y) at an amount per Note equal to the Specified Denomination, plus any interest accrued on the Note to (but excluding) the Redemption Date but yet unpaid and any Arrears of Interest payable on the specified Redemption Date if such redemption occurs on or after the First Call Date. If a Change of Control Event (as defined in the Terms and Conditions) shall have occurred, the Issuer may call the Notes for redemption (in whole but not in part) with effect as of the Change of Control Effective Date (as defined in the Terms and Conditions) upon giving of not more than 45 days' notice after publication of the Change of Control Notice (as defined in the Terms and Conditions). In the case such call notice is given, the Issuer shall redeem the Notes on the Change of Control Effective Date at an amount per Note equal to the Specified Denomination, plus any interest accrued on the Note to (but excluding) the Change of Control Effective Date but yet unpaid and any Arrears of Interest payable on the Change of Control Effective Date. In the event that the Issuer, the Guarantor and/or any Subsidiary (as defined in the Terms and Conditions) of the Issuer or the Guarantor has, severally or jointly, purchased Notes equal to or in excess of 80% of the Aggregate Principal Amount of the Notes initially issued, the Issuer may call and redeem the remaining Notes (in whole but not in part) upon giving not less than 30 and not more than 60 days' notice. In this case the Issuer shall redeem the Notes on the Redemption Date specified in the notice at an amount per Note equal to 101% of the Specified Denomination, plus any interest accrued on the Note to (but excluding) the Redemption Date but yet unpaid and any Arrears of Interest payable on the specified Redemption Date if such redemption occurs prior to the First Call Date, or (ii) at an amount per Note equal to the Specified Denomination, plus any interest accrued on the Note to (but excluding) the Redemption Date but yet unpaid and any Arrears of Interest payable on the specified Redemption Date if such redemption occurs on or after the First Call Date. 1,000. The Notes are only transferable in minimum aggregate principal amounts of 100,000 and any integral multiples of 1,000 in excess thereof. Use of Proceeds The net proceeds of the issue is expected to amount to 248,240,000 and the Issuer will apply the net proceeds towards the partial redemption of the Vendor Loan Note issued in connection with the AAE Acquisition as set out under the section "AAE Acquisition Acquisition Structure" of this Offering Circular (see this section also for more details on the redemption of the Vendor Loan Note) and for general corporate purposes of VTG Group.

8 8 Status of the Notes Subordinated Guarantee The obligations of the Issuer under the Notes constitute direct, (subject to the unconditional Subordinated Guarantee) unsecured and subordinated obligations of the Issuer, ranking pari passu among themselves, pari passu with all Parity Obligations of the Issuer and senior only to the Junior Obligations of the Issuer, and in the event of the liquidation or insolvency, or any other proceedings for the avoidance of insolvency, of, or against, the Issuer, the obligations under the Notes shall be fully subordinated to all other present and future obligations of the Issuer (except for Parity Obligations of the Issuer and Junior Obligations of the Issuer), whether subordinated or unsubordinated, except as otherwise provided by mandatory provisions of law or as expressly provided for by the terms of the relevant instrument so that in any such event no amounts shall be payable in respect of the Notes unless all claims that pursuant to this 3(1) rank senior to the Notes have been satisfied in full. Subject to this subordination provision, the Issuer may satisfy its obligations under the Notes also from other available assets of the Issuer. "Junior Obligations" means, with respect to any Person, (i) the ordinary shares and preferred shares (if any) of such Person, (ii) any present or future share of any other class of shares of such Person, (iii) any other present or future security, registered security or other instrument of such Person under which the obligations of such Person rank or are expressed to rank pari passu with the ordinary shares or the preferred shares (if any) of such Person and (iv) any present or future security, registered security or other instrument which is issued by a Subsidiary of such Person and guaranteed by such Person or for which such Person has otherwise assumed liability where the obligations of such Person under such guarantee or other assumptions of liability rank or are expressed to rank pari passu with any of the instruments described under (i), (ii) and (iii). "Parity Obligations" means, with respect to any Person, any present or future obligations which (i) are assumed by such Person and the obligations under which rank or are expressed to rank pari passu with the obligations of such Person under (in case of the Issuer) the Notes or (in case of the Guarantor) the Subordinated Guarantee, or (ii) benefit from a guarantee or support agreement expressed to rank pari passu with its obligations under (in case of the Issuer) the Notes or (in case of the Guarantor) the Subordinated Guarantee. "Person" means any individual, corporation, partnership, joint venture, association, joint stock company, trust, unincorporated organisation, limited liability company or government (or any agency or political subdivision thereof) or other entity. "Subsidiary" means (a) with respect to the Issuer, any Person in which the Issuer holds more than 50% of the capital or the voting shares, and (b) with respect to the Guarantor, any directly or indirectly majorityowned subsidiary of the Guarantor that must be consolidated by the Guarantor for the purposes of preparing annual consolidated financial statements of such Guarantor under IFRS. VTG Aktiengesellschaft (the "Guarantor") will give an unconditional and irrevocable guarantee on a subordinated basis (the "Subordinated Guarantee") for the due and punctual payment of principal of, and interest on, and any other amounts payable under any Notes. The Subordinated Guarantee constitutes a contract for the benefit of the Holders from time to time as third party beneficiaries in accordance with 328(1) of the German Civil Code (Bürgerliches Gesetzbuch), giving rise to the right of each Holder to require performance of the

9 9 No set-off, no security Interest Payments Subordinated Guarantee directly from the Guarantor and to enforce the Subordinated Guarantee directly against the Guarantor. The obligations of the Guarantor under the Subordinated Guarantee constitute direct, unsecured and subordinated obligations of the Guarantor, ranking pari passu among themselves, pari passu with all Parity Obligations of the Guarantor and senior only to the Junior Obligations of the Guarantor, and in the event of the liquidation or insolvency, or any other proceedings for the avoidance of insolvency, of, or against, the Guarantor, the obligations under the Subordinated Guarantee shall be fully subordinated to all other present and future obligations of the Guarantor (except for Parity Obligations of the Guarantor and Junior Obligations of the Guarantor), whether subordinated or unsubordinated, except as otherwise provided by mandatory provisions of law or as expressly provided for by the terms of the relevant instrument so that in any such event no amounts shall be payable in respect of the Subordinated Guarantee unless all claims that rank senior to the Subordinated Guarantee have been satisfied in full. The rights of the Holders towards the Guarantor under the Subordinated Guarantee constitute direct, unsecured and subordinated claims in the meaning of 39(2) of the German Insolvency Code, in the event of the liquidation or insolvency of the Guarantor or any other proceedings for the avoidance of insolvency of the Guarantor ranking pari passu among themselves, pari passu with all claims in respect of the Parity Obligations of the Guarantor and senior only to the claims against the Issuer in respect of the Junior Obligations of the Guarantor. No Holder may set-off any claims arising under the Notes or the Subordinated Guarantee against any claims that the Issuer may have against it. The Issuer may not set-off any claims it may have against any Holder against any of its obligations under the Notes. The Guarantor may not set-off any claims it may have against any Holder against any of its obligations under the Subordinated Guarantee. No security or guarantee of whatever kind is, or shall at any time be, provided by the Issuer, the Guarantor or any other person securing rights of the Holders under the Notes (except for the Subordinated Guarantee). Notes shall bear interest on their aggregate principal amount from (and including) 26 January 2015 (the "Interest Commencement Date") to (but excluding) the First Call Date at a fixed rate of 5.00% per annum. From (and including) the First Call Date to (but excluding) the date on which the Issuer redeems the Notes in whole Notes shall bear interest at the applicable Reset Rate of Interest for the relevant Interest Period. "Reset Rate of Interest" means the Reset Reference Rate for the Reset Period in which the relevant Interest Period falls plus the Margin. "Margin" means % per annum 1. "Reset Date" means the First Call Date and each fifth anniversary of the First Call Date. "Reset Period" means each period from (and including) the First Call Date to (but excluding) the next following Reset Date and thereafter from (and including) each Reset Date to (but excluding) the next following Reset Date. 1 Margin to reflect an interest rate step-up of 3.00% per annum over the initial credit spread to the First Call Date.

10 10 Optional Interest Deferral Optional Payment of Arrears of Interest Mandatory Payment of Arrears of Interest "Reset Reference Banks" means five leading swap dealers in the interbank market. The "Reset Reference Rate" for the relevant Reset Period will be determined by the Calculation Agent on the Interest Determination Date prior to the relevant Reset Date on which the relevant Reset Period commences (the "Reference Reset Date") and will be the annual swap rate for Euro swap transactions with a term of 5 years commencing on the Reference Reset Date, expressed as a percentage rate, as displayed on the Reuters screen "ISDAFIX2" (or any successor page) (the "Reset Screen Page") under the heading "EURIBOR BASIS-EUR" and the caption "11:00 AM Frankfurt" (as such headings and captions may appear from time to time) as of 11:00 a.m. Frankfurt time on the relevant Interest Determination Date. If a Change of Control Event occurs and the Issuer does not redeem the Notes in whole in accordance with the Terms and Conditions, the applicable Rate of Interest of the Notes will be increased by 500 basis points per annum from the Change of Control Effective Date. The Issuer is entitled to defer payments of any interest on any Interest Payment Date ("Arrears of Interest"), by giving notice to the Holders not less than 10 Business Days prior to the relevant Interest Payment Date. If the Issuer elects not to pay accrued interest on an Interest Payment Date, then it will not have any obligation to pay interest on such Interest Payment Date. Any such non-payment of interest will not constitute a default of the Issuer or any other breach of its obligations under the Notes or for any other purpose. Arrears of Interest will not bear interest. The Issuer is entitled to pay outstanding Arrears of Interest (in whole or in part) at any time on giving not less than 10 Business Days' notice to the Holders specifying the amount of Arrears of Interest to be paid and the date fixed for such payment. The Issuer must pay outstanding Arrears of Interest (in whole but not in part) on the earliest of the following dates (each a "Mandatory Settlement Date"): (i) the tenth Business Day following the occurrence of a Mandatory Payment Event; or (ii) the date on which the Notes are redeemed; or (iii) the date on which the relevant general meeting of shareholders resolves the voluntary winding-up of the Issuer or the Guarantor an order is made for the winding-up, dissolution or liquidation of the Issuer or the Guarantor (in each case other than for the purposes of or pursuant to the restructuring or an insolvency plan procedure (Insolvenzplanverfahren) or an amalgamation or reorganisation while solvent, where the continuing entity assumes substantially all of the assets and obligations of the Issuer or the Guarantor (as applicable)). A "Mandatory Payment Event" will occur upon any of the following events: (i) the calendar day on which a dividend, other distribution or other payment was paid or otherwise made in respect of Junior Obligations of the Issuer or the Guarantor or Parity Obligations of the Issuer or the Guarantor, in each case, however, other than a dividend, distribution or payment which (1) is solely made in the form of ordinary shares of the Issuer or of the Guarantor to the shareholders of the Issuer

11 11 Taxation or the Guarantor (as applicable) or (2) is made by the Issuer exclusively to the Guarantor; (ii) the calendar day on which the Issuer, the Guarantor or a Subsidiary of the Issuer or the Guarantor has redeemed, repurchased or otherwise acquired Junior Obligations of the Issuer or the Guarantor or Parity Obligations of the Issuer or the Guarantor prior to the respective maturity date as stipulated under the terms and conditions of such Junior Obligations of the Issuer or the Guarantor or Parity Obligations of the Issuer or the Guarantor at the time of their issuance or assumption (as applicable), in each case, however, other than (x) in connection with any employee benefit plan or similar arrangements with or for the benefit of employees, officers or directors, (y) as a result of the exchange or conversion of one class of Junior Obligations of the Issuer or the Guarantor for another class of Junior Obligations of the Issuer or the Guarantor or the exchange or conversion of one class of Parity Obligations of the Issuer or the Guarantor for another class of Parity Obligations of the Issuer or the Guarantor or Junior Obligations of the Issuer or the Guarantor, or (z) in the case the Issuer or the relevant Subsidiary receives Junior Obligations of the Issuer or the Guarantor or Parity Obligations of the Issuer or the Guarantor as consideration for a sale of assets to third parties; (iii) the next Interest Payment Date in relation to which the Issuer elects to pay interest on the Notes scheduled to be paid on such Interest Payment Date; provided that (x) in the cases (i) and (ii) above, no Mandatory Payment Event will occur if the Issuer, the Guarantor or the relevant Subsidiary is obliged under the terms and conditions of such Junior Obligations of the Issuer or the Guarantor or Parity Obligations of the Issuer or the Guarantor or by mandatory operation of law to make such payment, such redemption, such repurchase or such other acquisition; and (y) in the case (ii) above, no Mandatory Payment Event will occur if the Issuer, the Guarantor or the relevant Subsidiary repurchases or otherwise acquires any Parity Obligations of the Issuer or the Guarantor in whole or in part in a public tender offer or public exchange offer at a consideration per Parity Obligation of the Issuer or the Guarantor (as applicable) below its par value. All amounts payable in respect of the Notes (including payments by the Guarantor under the Subordinated Guarantee) shall be made without withholding or deduction for or on account of any present or future taxes or duties of whatever nature imposed or levied by way of withholding or deduction by or on behalf of the Grand Duchy of Luxembourg or the Federal Republic of Germany (as the case may be) or any political subdivision or any authority thereof or therein having power to tax unless such withholding or deduction is required by law. In such event, the Issuer or the Guarantor shall pay such additional amounts (the "Additional Amounts") as shall be necessary in order that the net amounts received by the Holders, after such withholding or deduction shall equal the respective amounts of principal and interest which would otherwise have been receivable in the absence of such withholding or deduction, subject to exceptions set out in the Terms and Conditions.

12 12 German Act on Issues of Debt Securities (Schuldverschreibungsgesetz) The Notes and the Subordinated Guarantee will be subject to the German Act on Issues of Debt Securities (Gesetz über Schuldverschreibungen aus Gesamtemissionen, SchVG), which, inter alia, provides for the possibility of the Issuer to amend the Terms and Conditions of the Notes with the consent by majority vote of the Holders and to appoint a joint representative (gemeinsamer Vertreter) for the preservation of their rights. Form of Notes The Notes are bearer notes (Inhaberschuldverschreibungen) represented by one or more global notes without coupons or receipts. Listing and admission to trading Governing Law Selling Restrictions Application has been made to the Luxembourg Stock Exchange to list the Notes on its official list and to admit the Notes to trading on the Euro MTF operated by the Luxembourg Stock Exchange, which is a multilateral trading facility for the purposes of the Market and the Financial Instruments Directive 2004/39/EC, and therefore not an EUregulated market. The Notes and the Subordinated Guarantee are governed by German law. The provisions of articles 86 to 94-8 of the Luxembourg law dated 10 August 1915 concerning commercial companies, as amended, will not apply to the Notes. See "Subscription and Sale of the Notes Selling Restrictions".

13 13 RISK FACTORS An investment in the Notes involves risks. The following is designed to show aspects of the Notes and the business of the Issuer and the Guarantor of which prospective investors should be aware. Investors should carefully consider the following discussion of the risks and the other information about the Notes contained in this Offering Circular before deciding whether an investment in the Notes is suitable. An investment in the Notes is only suitable for investors experienced in financial matters who are in a position to fully assess the risks relating to such an investment and who have sufficient financial means to absorb any potential loss stemming therefrom. Potential investors should read carefully and take into consideration the risk factors described below and other information contained in this Offering Circular before making a decision on the acquisition of the Notes from the Issuer. The onset of one or several of these risks, in isolation or in combination with other factors, can seriously affect the business operations of VTG and its direct and indirect subsidiaries (the "VTG Group"; as of 6 January 2015 and except as otherwise indicated, VTG Group also comprises the recently acquired subsidiary AAE Ahaus Alstätter Eisenbahn Holding AG ("AAE") and its subsidiaries (together the "AAE Group")) and have material adverse effects on the net assets, financial standing and profitability of VTG Group or on the price of the Notes. They may affect the Issuer's ability to fulfil its obligations under the Notes and, as applicable, the Guarantor's ability to fulfil its obligations under the Subordinated Guarantee. The risks described below are possibly not the only risks to which VTG Group is exposed. Other risks, which are currently not known to the Issuer and VTG or are considered unimportant at present, may also affect the business operations of VTG Group and have serious adverse effects on the business activity and the net assets, financial standing and profitability of VTG Group. The selected order is neither a statement of the probability of realization nor the extent of the economic effects or the significance of the risk factors mentioned below. Any reference to VTG Group in the Risk Factors below shall be read to include a specific reference to VTG and each relevant subsidiary of VTG and, in particular as of 6 January 2015 the members of the recently acquired AAE Group. Risk factors relating to the Issuer The Issuer is dependent on the Guarantor. The Issuer acts as financing subsidiary of the Guarantor, the principal activity of the Issuer is the provision of loans to members of VTG Group financed with funds acquired from the capital market, bank loans and loans from other companies of VTG Group. Its assets mainly consist of financial investments in VTG Group companies, receivables from loans to VTG Group companies, and other receivables owed by VTG Group companies. The Issuer may issue further notes in future. The on-going business activities of the Issuer depend on the ability of VTG and other companies of VTG Group to fulfil their payment obligations vis-à-vis the Issuer or the obligation to assume losses. A material adverse change in the financial position of the Guarantor or another member of VTG Group could considerably impair the ability of the Issuer to fulfil its obligations arising from the Notes towards the investors. Risk factors relating to the Issuer and the Guarantor Market and Company-related Risks VTG Group is affected by developments in the broader economy and in its end-customer industries which could lead to a change in capacity utilization in VTG Group's Railcar Division. The markets in which VTG Group operates are materially influenced by the general economic situation and its cycles and volatility. A downturn in the general economic activity as well as in the markets, in which VTG Group operates, in particular in Europe, could lead, among other effects, to a reduced demand in products and services offered by VTG Group, increasing price pressure or an increasing inability of VTG Group's customers to make payments. In particular, lower demand would lead to a decline in capacity utilization in VTG Group's railcar division (the "Railcar Division") and the intermodal wagons of the recently acquired AAE Group. The business with intermodal cars strongly depends on the demand for transport volumes on the relevant markets. This is especially the case with respect to railcar lease contracts for intermodal cars which include so called "pay as you go clauses" pursuant to which the customer only pays for the leased railcars on a usage basis. A lower demand and a change in capacity utilization directly impacts the level of rental income, which in turn could have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively.

14 14 Leasing of certain freight cars depends on available levels of maintenance and spare parts procured by VTG Group's customers. Certain lease contracts concluded by members of VTG Group and, in particular, members of the recently acquired AAE Group are contracts often referred to as "dry lease" contracts, i.e. contracts pursuant to which the customer is responsible for daily maintenance of the leased railcars. Demand for railcars therefore depends on the possibility of VTG Group's customers to procure maintenance services and spare parts from third parties. If such services and spare parts are not available to VTG Group's customers, or not available to a sufficient extent or on economically reasonable terms, this could lead to a weaker demand for VTG Group's railcars, which in turn could have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. The maintenance and expansion of the wagon fleet for the Railcar Division of VTG Group require substantial investments and involve considerable capital commitment. Furthermore, VTG Group depends on the availability of maintenance and spare parts from third-party suppliers for wagons. The business of VTG Group is very capital intensive. In particular, the acquisition of new rail freight cars for the Railcar Division requires high levels of initial investment, which are followed by continuous and cost intensive maintenance and modernization investments. As a result of these necessary investments, a substantial percentage of the existing capital of VTG Group is regularly bound and not available. If VTG Group cannot invest sufficiently in the expansion and modernization of its wagon fleet, this may considerably impair the ability of VTG Group to offer the transport capacities required by its customers. For example, this could be the case, if the financial resources required to purchase new rail freight cars are not available, or not available to a sufficient extent or on economically reasonable terms. Such an impairment of the performance of VTG Group could materially weaken the competitive position of VTG Group and could have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. Furthermore, VTG Group depends on the availability of maintenance and spare parts from third-party suppliers for wagons which are leased to customers under "wet lease" contracts, i.e. contracts pursuant to which VTG Group is responsible for maintenance of the railcars. The limited availability of such services or products could result in declines in revenue and loss of market shares which could have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. VTG Group maintains long-term business relationships with key customers. Disruptions or terminations of these business relationships could have adverse effects on orders and revenue of VTG Group. VTG Group maintains good and long-term business relationships with key customers, especially in the chemicals, mineral oil and intermodal industries. As a result, VTG Group believes that it has a good reputation among these customers. Certain customers, especially in the intermodal sector account for a large portion of overall revenues. Additionally, numerous customers trust the technical know-how of VTG Group and its employees. It cannot be ruled out that such business relations may be disrupted and consequently called into question as a result of accidents, changes in personnel or strategy of the customers, or price increases. Moreover, key customers may not extend existing contracts with VTG Group beyond the contract period, but terminate them. As the majority of the contracts of VTG Group currently have remaining periods of approximately three years, disruptions of business relations or terminations of contracts by customers of VTG Group may lead to a decline in orders, lower capacity utilization, and therefore also a decline in revenue for VTG Group, which could have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. In addition, the recently acquired AAE Group shows a relatively high customer concentration, particularly in the intermodal sector. The ten largest customers contributed approximately 54% of rental revenue of AAE Ahaus-Alstätter Eisenbahn Cargo AG ("AAE Cargo"), a material member of AAE Group, in the fiscal years 2011, 2012 and The most important customers comprise mainly state-owned railway companies (e.g. Deutsche Bahn AG group). The state-owned railway companies typically control access to large parts of the rail logistics market and the business relationships with them may be vital for the sustainability of VTG Group's business model for intermodal railcars. If VTG Group fails to retain these top customers or the revenues generated by these top customers, or if VTG Group is unable to grow this customer group, the

15 15 competitive position of VTG Group may be substantially impaired, which could have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. Demand for wagons (including intermodal cars) and tank containers can be incorrectly assessed in VTG's planning, which can lead to declines in revenue and profits for VTG Group. High utilization rates of the rail freight cars and tank containers in the inventory of VTG Group are of fundamental importance to the success of VTG Group. The achievement of such high utilization rates requires a demand-based control of the wagon and tank container fleet and of the type of transport offered and also requires that rail freight cars and tank containers are available at the location where they are needed. VTG Group attempts to adjust its procurement to meet demand and to control the availability of rail freight cars and tank containers. This control requires that the correct control parameters are used. These are based on forecasts and assessments made by VTG Group, which are based on past experience, but which may in the future prove not to be applicable. If, for example, customers decide to set up their own wagon fleets, the forecasts may prove to be incorrect because important customers are lost. If, as a result of an incorrect forecast, excess capacity arises and the rail freight cars and tank containers are not sufficiently utilized, negative effects on results of operations of VTG Group will occur. If rail freight cars and tank containers are not available in the required numbers or if the types offered do not correspond to the demand of the customers of VTG Group, declines in revenue and loss of market shares could have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. Unfavorable economic and political conditions in the Russian Federation may adversely affect VTG Group's business. VTG Group operates in the wagon hire and rail logistics market of the Russian Federation with a fleet of approximately 3,100 railcar wagons (as of 30 September 2014 and including the wagons of the recently acquired AAE Group). The recent political tensions between Western countries and the Russian Federation over the situation in Ukraine have led to economic sanctions from both sides and could be further tightened, thereby reducing or completely severing economic ties between the Russian Federation and Western countries. Furthermore, the Russian economy suffered a severe economic downturn in the recent past. While VTG Group does not believe that the current sanctions being imposed on the Russian Federation or the general economic environment in this region will materially impact its business activities in the Russian Federation, the sanctions may be broadened or their application changed and the economic situation could further deteriorate. Any of the aforementioned factors could adversely affect VTG Group's financial position and results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. Should the political tensions between the Russian Federation and the Ukraine as well as Western countries continue or should a conflict between the Russian Federation and Ukraine ensue, VTG Group might not be able to continue its operations in the Russian Federation and, therefore, its business, financial condition and results of operations may be adversely affected. In addition, an ensuing conflict might have a significant effect on global financial markets, which in turn might have a significant effect on the global wagon hire and logistics industry, which could adversely affect VTG Group's financial position and results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. VTG Group is exposed to the potential default of contracting parties and credit risk. VTG Group faces a risk in terms of actual payment practices of its customers and their ability to pay. In logistics, both divisions often pay customers' freight costs in advance. Even though VTG Group makes use of certain methods for securing payment of receivables, for example bank guarantees and advance payment where appropriate, it may be unsuccessful in identifying significant potential credit risks. Additionally, other parties with which VTG Group has entered into financial or other arrangements could also be in default, e.g. in the event of their insolvency or where they have no access to credit facilities. The default of customers or other contracting parties could have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. Currency exchange and interest rate fluctuations may have a significant impact on VTG Group's reported revenue, cash flows and earnings. VTG Group operates globally, entering into contracts denominated in various different currencies. Due to the international nature of its business activities, VTG Group has to deal with exchange rate fluctuations on the

16 16 currency markets. The members of VTG Group usually have an excess of trade receivables over trade payables in US dollars resulting in a net loss in this currency. This applies in particular to VTG Group's tank container logistics division ("Tank Container Logistics Division"). In line with its hedging policy, VTG Group largely secures both its planned net cash flows and additional surpluses of foreign currencies anticipated over the fiscal year with forward currency contracts. VTG Group also hedges the increasing risks of currency fluctuations arising from the growth of the business in Russia with foreign currency hedges. However, hedging may not eliminate all risks. Notwithstanding the hedging, changes in exchange rates affect the translation into Euro of revenues, costs, assets and liabilities of the members of VTG Group that use a currency other than the Euro as their reporting currency (for example U.S. Dollar, Great Britain Pound, Swiss Franc, Russian Ruble or Hungarian Forint). A depreciation of other currencies against the Euro will mean that, despite constant sales volumes and nominally constant prices, VTG Group will, after translation into Euro, generate lower revenue and profits for purposes of the consolidated or combined financial statements. A number of companies of VTG Group report their results in currencies other than the Euro, which requires VTG Group to convert the relevant items into Euro when preparing the consolidated financial statements. Any increase (or decrease) in the value of the Euro against any foreign currency that is the functional currency of any of the operating subsidiaries of VTG Group will cause VTG Group to experience foreign currency translation losses (or gains, as the case may be) with respect to amounts already invested in such foreign currencies. These so-called translation risks are generally not hedged. In addition, even where a member of VTG Group is entering into a currency hedge, this exposes the relevant member of VTG Group to counterparty risks in respect of the relevant hedge counterparties. Moreover, VTG Group is exposed to a risk of interest rate changes relating to its borrowings. VTG Group operates worldwide, and thus liquidity is invested and raised in the international money and capital markets in different currencies, mainly in Euros and U.S. dollars, and at different maturities. Interest rate fluctuations could affect both the amount of interest payable on existing debt and the refinancing costs. Even where a member of VTG Group is entering into hedge in respect of these interest rate risk, the relevant member of VTG Group is exposed to counterparty risks in respect of the relevant hedge counterparties. These currency and interest rate risks, or any losses resulting from related hedging transactions, could have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. VTG Group is exposed to liability claims and the risk that it does not fulfill customer requirements or specifications. As part of its business operations, VTG Group offers rental and transport services that include the provision of means for the transport of hazardous goods. These transports generally involve the risk that accidents with the means of transport provided by VTG Group may occur. Even if VTG Group's risk of being held liable for such accidents is reduced due to not performing the transport itself, with certain exceptions in VTG's rail logistics division ("Rail Logistics Division") and Tank Container Logistics Division, VTG Group may possibly face claims for damages due to such accidents. For example, this could be the case if companies of VTG Group as wagon hire companies were to be accused of a violation of maintenance duties. This could have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. Any of these types of allegations may subject VTG Group to reputational damage or may form the basis for claims that clients and other third parties assert against VTG Group. This may require VTG Group to expend additional resources to take appropriate corrective action with regard to affected products or systems, in addition to potential costs for penalties. Claims asserted against VTG Group can be expensive to defend and can divert the attention of personnel for significant time periods, regardless of the ultimate outcome. The availability and cost of insurance to cover claims for damages caused by VTG Group are subject to market forces that VTG and the relevant subsidiaries do not control, and such insurance would not cover damages to VTG Group's reputation. A lost product or performance liability claim could have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. Even if the respective member of VTG Group is successful in defending against claims relating to the products sold or services performed, the mere assertion of such claims could have a negative impact on client confidence in VTG Group's services and products as well as in VTG Group itself. In addition, even if a liability claim is not brought before court, it may lead to additional costs, for instance for product or component replacements, performance tests extension, correction of defects and additional engineering. Any of these factors could

17 17 have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. While VTG Group is currently not subject of material product liability claims for damages it may still be exposed to liability claims in the future. Awards of damages, settlement amounts and fees and expenses resulting from such claims and the public relations implications of any such claims, could have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. Serial damage to rail freight cars acquired by VTG Group may occur due to construction or production defects, which may have an indirect material adverse effect on VTG Group. The rail freight cars acquired by VTG Group in the Railcar Division are normally manufactured in series, a process in which the production of a wagon type occurs on the basis of a production design. It is possible that, due to construction or production defects, modifications to or under certain circumstances even recalls of rail freight cars from customers may become necessary. VTG Group would have to pay compensation for the loss of capacity in the event of a recall of rail freight cars or incur revenue losses and declines in earnings. It is also possible, due to the considerable costs involved in such a conversion and any recall that the manufacturers concerned may not be in a financial position to cope with these costs and may even have to file for bankruptcy. In the event of a bankruptcy of a manufacturer due to the occurrence of serial damage, VTG Group would have to bear the costs of remedying the defects of the rail freight cars it has put into operation. The same holds true if VTG Group can no longer demand that the manufacturer repairs defects due to the expiration of warranties. Without conducting necessary repairs of defects, there would also be a possibility that the responsible supervisory authorities may withdraw the operating permission for the defective rail freight cars. The obligation to eliminate such defects of rail freight cars manufactured in series and acquired by VTG Group or a prohibition on the further use of such rail freight cars may have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. Any failures or disruptions of VTG Group's information technology could affect its operations and ability to serve customers. VTG Group is dependent on an efficient and uninterrupted operation of its computer and data processing systems. Computer and data processing systems are generally prone to failures, damage, power outages, computer viruses, fire and similar events. A failure or interruption in the operation of these systems can therefore not be ruled out. Failures or interruptions in the operation of the computer and data processing systems used by VTG Group could pose an obstacle to the effective management of VTG Group and to its ability to serve customers. This could have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. VTG Group procures wagons used in its Railcar Division from third parties. Delivery shortfalls in relation to ordered wagons could affect VTG Group's operations and ability to serve customers. VTG Group invests large sums in maintaining, expanding and renewing its wagon fleet and constantly has a significant number of wagons on order with its suppliers which subsequently have to be delivered to customers. The risks involved for VTG Group include the possibility that the suppliers do not fulfil their obligations and either fail to deliver the wagons or do so late or that customers are no longer able to accept the wagons. This could have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. Furthermore, VTG Group obtains its rail freight cars, which it rents to customers through its Railcar Division, from certain wagon manufacturers. The more specific the wagon type is, the fewer manufacturers there are. Currently, there is only a limited number of qualified wagon manufacturers, which are able to supply rail freight cars, and in particular rail tank cars, in accordance with currently valid technical and regulatory requirements. If the consolidation process that is currently observed in the area of wagon construction continues and the wagon manufacturers are no longer able to supply rail freight cars on acceptable terms and at acceptable prices, or only with a delay, or no longer in the required number or not at all, VTG Group would have to find new suppliers that can, at appropriate prices, supply the rail freight cars in the required quantity and of the required quality as well as of the necessary type. In particular, VTG Group would, under certain circumstances, have to run additional tests and approval procedures for the rail freight cars supplied by new wagon manufacturers in order to be permitted to use these rail freight cars for its business

18 18 operations. Difficulties in being supplied by the wagon manufacturers may therefore have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. Liberalization of the railway market takes longer than was originally thought. The operational focus of VTG Group's Railcar and Rail Logistics Divisions is Europe. European Union regulations are both promoting and requiring further liberalization of rail freight traffic in the region. The aim is to enable new companies to enter the market and thereby intensify competition on the railway. Also, by strengthening the railway as a carrier, the intention is to ensure that the EU can meet its environmental protection targets, particularly the reduction of CO 2 emissions. For rail freight transport, the member states of the European Union have routes, systems and wagons as well as control and operating systems that in some instances differ in design from member state to member state. This means that in some areas the railway system, rolling stock (for example, locomotives and rail freight cars), signalling technology and the respective voltages of the individual member states currently vary in design. Furthermore, no pan-european operating approvals currently exist for locomotives or rail freight cars and there is a shortage of train drivers with knowledge of international track networks. Therefore these factors still partly impair competition among providers in the member states of the European Union, as, due to technical reasons, the providers are only able to transport goods by rail to other member states of the European Union without lengthy stops at their borders at additional expense. The continued existence of these restrictions especially affects the Railcar and Rail Logistics Divisions of VTG Group due to their offering of rail-related services. Since the mid-1990s at the latest, the European legislator has been pursuing a policy of far-reaching liberalization of the rail transport of the member states of the European Union. As part of this liberalization process, it is also striving to achieve a uniform standard for infrastructure and wagon characteristics that currently differ. The European legislator has opened up national and cross-border rail freight transport to competition in the member states of the European Union, expanded access rights to the trans-european rail freight network and, by enacting technical specifications on interoperability, have paved the way to complete harmonization. The European Union also intends to lift all track restrictions through appropriate regulatory measures within the European Union. If these efforts undertaken by the European Union are not implemented at all, or not in the near future, nontariff trade barriers, such as for example, different levels of progress in the legal and actual implementation of the regulations on the liberalization of rail transport within the member states of the European Union or the application of norms and standards which do not conform to international requirements, could impair or delay the development of free competition in the rail freight transport business. It cannot be ruled out that VTG Group, as a private provider operating on the market for rail freight transport, may suffer disadvantages due to slowly progressing liberalization, which might have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. VTG Group's competitive position may deteriorate. Customers from all industries, in particular from the mineral oil industry, award their contracts as part of annual transport tenders. Should VTG Group fail to maintain its market position in the relevant markets or build-up a meaningful market position in new markets, this could have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. Furthermore, being awarded a contract depends, among other things, on quoting the most favorable price possible for the services offered. This leads, for example in the Rail Logistics Division, to intense pressure on competition and prices among logistics providers which also influences margins. Furthermore, despite VTG Group efforts and investments, it cannot be excluded that existing or new competitors may develop their current business model further or create alternative offerings that are more attractively priced, offer higher quality or are more appealing for other reasons than VTG Group's products. Additionally, some of VTG Group's existing competitors and new entrants may have greater operational, financial and other resources or may otherwise be better positioned to develop new products or services and compete for opportunities and, as a result, VTG Group's business may be less successful. If new or better developed products or services can be offered at more attractive prices, or if such products or services are more attractive than VTG Group's products and services for other reasons such as a higher degree of functionality, demand for VTG Group's products and services would fall, which could have a material adverse

19 19 effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. VTG Group is exposed to liquidity risks. VTG Group is exposed to liquidity risks in that it may be unable to meet payment obligations because it has insufficient cash funds at its disposal. VTG Group manages this risk by planning all liquidity requirements for the short, medium and long term in terms of cash outflows and inflows. These requirements are mainly covered by, on the one hand, operating cash flow and, on the other, guaranteed, available lines of credit secured largely through the refinancing of VTG Group in The inability to ensure sufficient liquidity could have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. VTG Group relies on the experience and talent of its senior management and its ability to recruit and retain key employees for the success of its business. VTG Group's success largely depends on the performance of qualified employees, executive staff and VTG's Executive Board. A highly qualified workforce is a key element in the success of the business of VTG and its subsidiaries. VTG Group operates in an industry with an ever-increasing number of regulations and technical requirements. This makes both experience and expertise very important. Additionally, detailed, specialist knowledge is required, particularly when it comes to the transport of hazardous goods. To date, most employees of VTG Group have remained with it for a long time. An extended average period of employment remains the objective of VTG Group. VTG Group also has to compete with other companies for new, highly qualified members of staff. It cannot be guaranteed that VTG Group will succeed in retaining such management staff and employees in key positions or to recruit and/or train a sufficient number of new employees with corresponding qualifications. If VTG Group is unable to retain or recruit a sufficient number of management staff and skilled employees, maintaining the current market position, as well as future growth, would be at risk. This could have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. VTG Group faces risks related to price changes. VTG Group faces a general price change risk. However, in the past few years, prices have either remained stable or risen. This has particularly been the case in the core operational division, Railcar. In the Railcar Division (including the business of the recently acquired AAE Group), fluctuations in demand are not generally reflected in price reduction but in returns of wagons when the contractual term of hire expires. VTG Group is striving to continually increase prices to absorb the impact of, for instance, rising maintenance costs. These cost increases are largely the result of additional regulatory requirements. In contrast to the Railcar Division, the logistics divisions' cost structures are dominated by variable costs. Even though changes in prices therefore generally have a lower impact on the earnings situation of VTG Group, lower prices could have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. VTG Group is subject to a variety of environmental and technical regulations and may be exposed to liability for not complying with these regulations or to liability for inherited pollution. VTG Group's operations are focused on the rail freight traffic sector, which is subject to numerous sets of rules (laws, regulations, standards, etc.). This means that VTG Group is obliged to respond to changes or new requirements imposed by legislators and safety and regulatory bodies. Implementing these requirements can entail substantial costs in terms of investment or maintenance. Such requirements can affect the plant and workshops in particular. They can also affect wagons and tank containers, either as a whole or in terms of components only. Noise control is one of the key environmental issues in European rail freight traffic. To adapt VTG Group's European wagon fleet appropriately, new wagons have been fitted with the noise-reducing composite (K) brake block since Approximately 21% of the wagons in this part of VTG Group's fleet (excluding AAE Group) have so far been fitted with these quiet brake blocks. In the fleet of the recently acquired AAE Group, the percentage of wagons equipped with these quite brake blocks is 13.7% (excluding AX Benet's wagons). Policymakers regularly discuss refitting existing freight wagons with quieter brake blocks (so-called LL brake blocks) without any binding regulation having yet come into force. Should any such binding regulation be approved by legislators, with the additional costs of refitting older wagons with LL brake blocks to be borne by wagon keepers alone, this would have a negative impact on the

20 20 companies involved and thus also on VTG Group. However, it currently cannot be reliably estimated whether and in which form such legislation would be passed, or the level of additional cost wagon keepers would have to bear. Liabilities, costs, penalties, remediation orders by courts or authorities or operational restrictions may be imposed on or incurred by VTG Group in connection with environmental and safety issues, which could have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. Under such laws and regulations, VTG Group may have to bear the costs for the investigation and remediation of contamination and other environmental conditions relating to VTG Group's current and former operations and VTG Group's properties. These laws and regulations may impose strict liability, rendering VTG Group liable without regard to any fault of VTG Group, and could expose VTG Group to a risk of liability for the conduct of or conditions caused by others or for VTG Group's acts that were in compliance with all laws applicable at the time such acts were performed. In particular, contaminations of the soil and groundwater may lead to considerable costs for investigation and remediation, irrespective of whether VTG Group caused the contamination. Remediation risks are known to exist in particular at the sites of the three rail freight cars workshops, although, from the Company's point of view, no indications for immediate remediation exist. Environmental regulations are subject to change, which in turn could increase the requirements imposed on VTG Group under such regulations, VTG Group's exposure to risks of noncompliance or liabilities and its costs under environmental laws and regulations. VTG Group may be liable to third parties in respect of any personal injury or property damage resulting from environmental and safety issues arising in connection with VTG Group's current and former operations. Noncompliance with existing or future environmental and health and safety laws and regulations, including a failure to obtain or maintain requisite permits and authorizations, may result in criminal or administrative fines or other penalties. Such costs and liabilities, if incurred, could have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. VTG Group has to comply with regulatory requirements with respect to the jurisdictions in which it operates (e.g. sanctions law). Numerous laws and regulations apply to VTG Group's business operations in the various jurisdictions in which it operates. In the case of economic sanctions or boycotts imposed by the United Nations, the U.S. or the European Union on certain countries (e.g. sanctions regarding Russia), VTG Group may be unable to invest in the wagon fleet in such countries and its business would be negatively affected should such sanctions be extended to larger regions. In addition, existing and proposed legislation and regulations, some of which may vary considerably from country to country may also increase VTG Group's cost of doing business. Any amendment to, and in particular a tightening of, such provisions including changes in the manner in which such legislation and regulations are interpreted by courts could complicate operational procedures and adversely affect the marketability of VTG Group's services or increase its compliance costs and tax burden, which could have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. Compliance with these numerous statutory provisions and other legal and regulatory requirements requires significant effort and expense. Although VTG Group believes it has taken adequate measures to train and instruct employee regarding conduct issues, it cannot be excluded that employees may not act in compliance with applicable statutory provisions and other legal and regulatory requirements as well as corporate policies, and VTG Group faces the risk that penalties or liabilities may be imposed on VTG Group. Any of these penalties or liabilities could have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. VTG Group faces risks relating to interest rates. In May 2011, VTG refinanced its previous bank financings granted under a loan agreement through a new syndicated loan and a US private placement. Due to the variable interest liabilities to banks resulting from the new syndicated loan, VTG is exposed to an interest rate risk that can change depending on the market interest rate. Interest rate hedges (interest rate derivatives) had been put in place for the original (previous) loan agreement. These cover the risk of increases in interest for the new syndicated loan. A portion of these will continue running until In addition AAE Group, the recently-acquired subsidiary of VTG, has debt

21 21 structures, where the majority, but not all, of the outstanding loan amounts are covered by interest rate hedges. A portion of VTG's interest rate hedges as well as those of the recently acquired AAE Group are now recognized in profit or loss due to the lack of a hedging relationship. The interest rate hedges are measured at market value, with the portion no longer in a hedging relationship being recognized in profit or loss and the effective portion recognized in equity. Depending on the current interest rate, market values can change and accordingly have a positive or negative impact on EBT, net profit for VTG Group and VTG's equity. There was a general downward trend in the interest rate over This in turn led to a negative market evaluation of the interest rate derivatives and thus higher financing expenses. This could have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. VTG Group has incurred substantial indebtedness and may incur further indebtedness in the future. VTG Deutschland GmbH, a wholly-owned subsidiary of VTG Aktiengesellschaft, and certain of its subsidiaries are borrowers under the Syndicated Credit Facilities Agreement (as defined below) pursuant to which credit facilities in the aggregate amount of 427,570,000 and 20,000,000 have been made available to the borrowers. In addition, VTG Deutschland GmbH has issued various tranches of USPP Notes (as defined below) in the aggregate nominal amount 450,000,000 and $40,000,000. The payment obligations of the relevant borrowers under the Syndicated Credit Facilities Agreement and of VTG Deutschland GmbH under the USPP Notes are guaranteed by VTG Aktiengesellschaft and certain other members of VTG Group. AAE Cargo which is a part of the recently acquired AAE Group has borrowed and will continue to borrow under a series of credit agreements in an aggregate amount of 797,000,000 (the "Cargo Facilities"). In addition, three wholly owned subsidiaries of VTG have taken on non-recourse asset based project financings with an aggregate outstanding amount of 85,162,937 as of 30 September Further information to the above financing agreements can be found under "Description of the Guarantor and VTG Group Material Agreements". Although the terms and conditions of the Syndicated Credit Facilities Agreement and the USPP Notes restrict the ability of VTG Deutschland GmbH and certain of its subsidiaries to incur additional debt and limit VTG Group's total indebtedness based on certain financial ratios, VTG or any of its subsidiaries might incur additional debt to the extent permitted by the Syndicated Credit Facilities Agreement and the terms of the USPP Notes. Any issuance of further debt by VTG or the issuance of guarantees by VTG in respect of debt of other members of VTG Group may further reduce the amount recoverable by the Holders upon winding-up or insolvency of VTG. The ability of the relevant members of VTG Group to meet its payment obligations under existing or future financing arrangements (in particular under the Syndicated Credit Facilities Agreement pursuant to which all outstanding loans will become due for repayment in April 2016) and VTG Group's ability to fund working capital and capital expenditures will depend on VTG Group's future operating performance and ability to generate sufficient cash. This depends to some extent on general economic, financial, competitive, market, legislative, regulatory and other factors, many of which are beyond VTG Group's control. No assurance can be given that VTG Group's business will generate sufficient cash flow from operations, that revenue growth and operating improvements currently anticipated will be realized or that future debt and equity financing will be available to VTG Group on satisfactory terms or at all in an amount sufficient to enable the relevant members of VTG Group to meet their payment obligations under existing or future financing arrangements when due or fund their respective other liquidity needs. If VTG Group's cash flow from operations and other capital resources are insufficient to meet the payment obligations of the relevant members of VTG Group as they mature or to fund their respective other liquidity needs, VTG Group may be forced to: reduce or delay their business activities and capital expenditures; sell assets; incur additional debt or raise equity capital; or restructure or refinance all or a portion of their respective indebtedness either on or before its maturity. There can be no assurance that VTG Group would be able to accomplish any of these alternatives on a timely basis and/or on satisfactory terms which could have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively.

22 22 VTG Group's existing financing arrangements impose restrictions on the operating flexibility of VTG Group. The Syndicated Credit Facilities Agreement and the terms of the USPP Notes and the Cargo Facilities contain covenants that limit the ability of VTG Deutschland GmbH and AAE Cargo and certain of its subsidiaries to incur additional debt. These restrictions may prevent the relevant members of VTG Group to obtain additional liquidity in a situation where such additional liquidity is required to meet their working capital requirements or to fund any further capital expenditure. Furthermore, the Syndicated Credit Facilities Agreement and the terms of the USPP Notes contain various covenants which restrict the ability of all or some members of VTG Group to: create liens over their respective assets; make acquisitions; enter into lease agreements as lessees if the lease payments exceed certain threshold amounts; merge, amalgamate or sell substantially all of their respective assets; and enter into certain transactions with affiliates. These covenants in the existing financing arrangements or additional covenants in future financing arrangements could limit VTG Group's financing options, the ability to pursue acquisitions or other business activities that may be in the interest of VTG Group or to grow VTG Group's business, in particular in periods of economic downturns, which could have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. If VTG or any other member of VTG Group fails to meet its obligations under its financing arrangements, its creditors could declare all amounts owed to them due and payable, which could lead to liquidity restraints. The ability of VTG Group to comply with the financial covenants, general undertakings and other restrictions in its financing agreements, in particular the Syndicated Credit Facilities Agreement, the Cargo Facilities and the USPP Notes, may be affected by events beyond its control. These include general economic, financial and industry related factors and conditions. If any of the aforementioned financial covenants, general undertakings or restrictions is breached, VTG and/or its subsidiaries could be in default under the Syndicated Credit Facilities Agreement, the USPP Notes and/or other relevant financing agreements. In the event of a default under the Syndicated Credit Facilities Agreement, the USPP Notes, the Cargo Facilities or under any other financing agreement, the lenders or creditors under the respective credit facilities or financing instruments could take certain actions, including terminating their commitments and declaring all amounts that VTG or its subsidiaries have borrowed under their credit facilities or other financing instruments to be immediately due and payable, together with accrued and unpaid interest and in some instances break costs, prepayment penalties or applicable make-whole amounts. In addition, borrowings under other debt instruments that contain cross-acceleration or cross-default provisions, including the Syndicated Credit Facilities Agreement and the USPP Notes, may as a result also be accelerated and become immediately due and payable. If the debt under the Syndicated Credit Facilities Agreement, the USPP Notes or any other material financing arrangement that VTG or any of its subsidiaries has entered into or will enter into were to be accelerated, VTG and/or certain of its subsidiaries may become insolvent and in such event the assets of the Issuer and/or VTG may be insufficient to redeem the Notes in full and honour the payment obligations under the Subordinated Guarantee, respectively. VTG is exposed to risks in connection with past and future acquisitions and joint ventures as well as strategic partnerships. In the past, VTG Group has occasionally acquired businesses (for example AAE Group) or (including through subsidiaries) entered into joint ventures (for example with Kühne + Nagel or Cosco Logistics) in order to expand its operations. Acquisitions, joint ventures and group company reorganizations entail risks resulting from the integration of employees, processes, technologies, and products. Such transactions may give rise to substantial administrative and other expenses. Portfolio measures may also result in the need for additional finance and may impact negatively on financing requirements and the financing structure. There is no guarantee that VTG or the relevant subsidiary of VTG will be able to maintain its current joint venture relationships or future acquisitions or joint ventures will be successful. In the future, VTG Group may acquire businesses or enter into joint ventures in a targeted manner. In this

23 23 regard, there is no guarantee that VTG Group will be able to identify suitable businesses and to acquire them or enter into joint ventures on favorable terms. There is also a risk that not all material risks in connection with the acquisition of a company or the establishment of a joint venture will be identified in the due diligence process and will not be or could not be sufficiently taken into account in the decision to acquire a business and in the purchase agreement, or the decision to enter into a joint venture and the joint venture agreement. These risks could materialize only after a company has been acquired or a joint venture has been entered into, and may not be covered by the warranties in the purchase agreement or the joint venture agreement or by insurance policies. Any of these factors could have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. Risk of payment obligations due to VTG Deutschland GmbH's participation in the Pension Institution of the Federal Republic and the States (Versorgungsanstalt des Bundes und der Länder). For historical reasons, VTG Deutschland GmbH is the sole company in VTG Group to be a participant in the Pension Institution of the Federal Republic and the States ("VBL"), Karlsruhe, the largest supplementary pension fund for public service employees. The participation can be terminated by VTG Deutschland GmbH in compliance with a notice period and by the VBL if certain circumstances arise. If the participation is terminated, consideration based on the relevant date would have to be paid by VTG Deutschland GmbH to the VBL to cover the payment obligations of the VBL toward those employees that are approaching the pension age and pensioners, who are to continue to be paid from the funds of the VBL after termination. It is possible that the participation of VTG Deutschland GmbH or the VBL may be terminated in the future if a reason for termination should arise. If the participation is terminated, consideration, based on the relevant date, of a mid-range double-digit figure in millions of Euro would have to be paid for the active and former employees by VTG Deutschland GmbH to the VBL, which could have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. Termination by the VBL may, in particular, occur if a substantial number of the employees of VTG Deutschland GmbH, also within the framework of internal group restructuring measures, is transferred to another company as their new employer, and that other company is not a participant in the VBL. As the VBL would, in such a case, be entitled to terminate the participation agreement and demand the payment of the equivalent, based on the relevant date, VTG Group could refrain from internal group restructuring measures due to the participation of VTG Deutschland GmbH in the VBL and consequently be prevented from implementing some restructuring measures. VTG Deutschland GmbH could be obligated to pay considerable additional contributions to the Pension Institution of the Federal Republic and the States. Since 2002, the VBL has been charging so called "restructuring payments" (Sanierungsgeld), an additional contribution employers make to public sector pension schemes, which is calculated in accordance with a computational formula last amended in the course of a change of the VBL statutes that came into effect on 1 January In view of considerable additional payments coming along with that revised computational basis, VTG Deutschland GmbH since then has successfully been filing hardship case applications on an annual basis in order to limit the restructuring payments. If in the future VBL turns the hardship case applications down, VTG Deutschland GmbH would be obliged to pay considerably higher restructuring payments as compared to the past. Such a payment obligation could have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. It is possible that the pension plans maintained by VTG Group may not be covered by sufficient provisions. As part of their pension plans, the members of VTG Group have promised company pensions directly to some of their employees and former employees. Due to the history of VTG Group there is a considerable number of pensioners. VTG Group believes that the members of VTG Group have set up sufficient provisions for them on the basis of current actuarial assumptions. The amount of these obligations is based on certain actuarial assumptions, which include, for example, discounting factors, life expectancy, pension trends and future salary development. If the actual payment obligations deviate from these actuarial assumptions, a considerable balance-sheet increase in the pension obligations could occur and therefore VTG Group may be obligated to recognize higher pension provisions. This could have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or

24 24 VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. Risk factors relating to the shareholder structure and the AAE Acquisition Risks related to VTG's shareholder structure. Compagnie Européenne de Wagons S.à r.l., Luxembourg (directly and indirectly via CEW Germany GmbH) and Mr Andreas Goer both hold substantial shares of the Company's share capital (see "Description of the Guarantor and VTG Group Incorporation, registered office, corporate purpose and fiscal year Major shareholders"). With their shareholdings, these major shareholders will most likely be able to exercise control over passing those resolutions at a shareholders' meeting of VTG that require a simple majority. Furthermore, each of them will be able to block resolutions that require a qualified majority of the votes cast or of the share capital represented. These resolutions could also relate to capital increases for financing acquisitions or investments or for other purposes. If these major shareholders refuse to participate in any capital increase by the Company in future or if they exert their influence at the shareholders meeting or in any other way, this could limit VTG's options for raising fresh capital and may have a material adverse effect on VTG Group's business, financial position, results of operations and the ability of the Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. The pro-forma consolidated financial information contained in this Offering Circular was prepared for illustrative purposes only and describes only a hypothetical situation. It does not reflect the actual net assets, financial position and results of operations upon completion of the acquisition of AAE Group ("AAE Acquisition"). The Company experiences a significant increase in the statement of financial position upon the AAE Acquisition entering into effect. For this reason, pro-forma consolidated financial information was prepared for the purposes of this Offering Circular. The purpose of the pro-forma consolidated financial information of the Company is to present the material effects the AAE Acquisition would have had on the historical consolidated financial statements of the Company for the nine months ended 30 September 2014 if VTG Group had existed in the structure created by the AAE Acquisition since 1 January The pro-forma consolidated financial information is based on available information, estimates and certain assumptions. The pro-forma consolidated financial information has been prepared for illustrative purposes only. By its nature, the pro-forma consolidated financial information describes only a hypothetical situation and since it is based on assumptions, its presentation does not reflect the actual net assets, financial position and result of operations upon completion of the AAE Acquisition. The integration of AAE Group into VTG Group might not be successful or prove more expensive than expected. It is expected that the comprehensive integration of the recently acquired AAE Group may take several years and may tie up significant human and financial resources. Successful integration will also depend on, inter alia, the convergence of two sets of staff and different corporate cultures, the harmonization of IT systems and the establishment of joint processes for the integrated group. Moreover, the AAE Acquisition and the integration may have negative implications for the contractual or legal position of the companies of VTG Group (including AAE Group). For instance, change of control rights in contracts with companies of AAE Group may be triggered through the AAE Acquisition (with the exception of those financing agreements for which a waiver has been obtained in the context of the AAE Acquisition). Contractual partners may refrain from continuing business relations with VTG Group following the AAE Acquisition or existing lenders or note holders of VTG Group and AAE Group, respectively, may decide to reduce their exposure to the integrated VTG Group. Should any one of these risks materialize, this could have a material adverse effect on VTG Group's net assets, financial condition and results of operations and its ability to fulfill its obligations under the Notes and the Subordinated Guarantee, respectively. The competitive advantages and synergies expected from the integration of AAE Group may not materialize to the extent anticipated, if at all, and the costs associated with synergies may be higher than planned. The Company expects that the proposed acquisition will bring about numerous synergies, economies of scale and competitive advantages. However, the Company cannot rule out that the expected synergies, economies of scale and competitive advantages may not be realized to the extent originally anticipated, if at all. Moreover, the costs associated with the realization of synergies may be higher than projected. It may turn out that AAE Group's business may develop differently than expected when the Company carried out its assessment of AAE Group. These and other factors may, if they materialize, have material adverse effects

25 25 on VTG Group's net assets, financial condition and results of operations and may result in a deterioration of the economic consequences of the AAE Acquisition and the ability of the Issuer and/or VTG to fulfill its obligations under the Notes and the Subordinated Guarantee, respectively. Risks associated with an Investment in the Notes Words and expressions used in this section and not otherwise defined in the Offering Circular shall have the meaning ascribed to them in the Terms and Conditions of the Notes and the Subordinated Guarantee, respectively. The purchase of the Notes involves significant risks arising as a result of specific characteristics of the Notes and the Subordinated Guarantee. The Notes may not be a suitable investment for all investors. Potential investors in the Notes must determine the suitability (either alone or with the help of a financial adviser) of that investment in light of their own circumstances. In particular, each potential investor should: have sufficient knowledge and experience to make a meaningful evaluation of the Notes, the merits and risks of investing in the Notes and the information contained or incorporated by reference in this Offering Circular; have access to, and knowledge of, appropriate analytical tools to evaluate, in the context of its particular financial situation and the investment it is considering, an investment in the Notes and the impact such investment will have on its overall investment portfolio; have sufficient financial resources and liquidity to bear all of the risks of an investment in the Notes, including the risk not to receive any return on investment or repayment of the invested amount, and also including risks arising if the currency for principal or interest payments on the Notes, i.e. Euro, is different from the currency in which its financial activities are principally denominated; understand thoroughly the terms of the Notes and the Subordinated Guarantee, recognize that it may not be possible to dispose of the Notes for a substantial period of time and be familiar with the behaviour of the financial markets; and be able to evaluate (either alone or with the help of a financial adviser) possible scenarios for economic, interest rate and other factors that may affect its investment and its ability to bear the applicable risks. Prior to making an investment decision, each potential investor should consider carefully, in light of its own financial circumstances and investment objectives, all the information contained in this Offering Circular or incorporated by reference herein. The Notes have no scheduled maturity. The Notes have no scheduled maturity and may run for an indefinite period. Accordingly, the Issuer is under no obligation to repay all or any part of the nominal amount of the Notes at a certain point in time and Holders have no right to require redemption of the Notes. The Terms and Conditions of the Notes only provide for call and redemption rights of the Issuer. Therefore, Holders should be aware that they may be required to bear the financial risks of an investment in the Notes for an indefinite period of time. Interest payments under the Notes may be deferred at the option of the Issuer. Holders of the Notes should be aware that interest may not be due and payable (fällig) on the scheduled Interest Payment Date, and that the payment of the resulting Arrears of Interest is subject to certain further conditions. Failure to pay interest as a result of an interest deferral will not constitute a default of the Issuer or a breach of any other obligations under the Notes or for any other purposes. Holders will not receive any additional interest or compensation for the deferral of payment. In particular, the resulting Arrears of Interest will not bear interest. As a result of the interest deferral provision of the Notes, the market price of the Notes may be more volatile than the market prices of other debt securities on which interest payments are not subject to such deferrals and may be more sensitive generally to adverse changes in the Issuer's financial condition. Investors should be aware that any deferral of interest payments may have an adverse effect on the market price of the Notes. There is a risk of early redemption. The Notes may be subject to redemption (in whole but not in part) at any time upon the occurrence of a Gross-Up Event, an Accounting Event, a Tax Event or a Change of Control Event (each as defined in the

26 26 Terms and Conditions) or in the event that the Issuer, the Guarantor and/or any Subsidiary (as defined in the Terms and Conditions) of the Issuer or the Guarantor has severally or jointly purchased Notes equal to or in excess of 80% of the Aggregate Principal Amount of the Notes initially issued. Furthermore, the Issuer may call and redeem the Notes (in whole but not in part) on the First Call Date or on any Interest Payment Date thereafter upon giving not less than 30 and not more than 60 days' notice to the Holders. The redemption at the option of the Issuer may affect the market value of the Notes. During any period when the Issuer may elect to redeem the Notes, the market value of the Notes generally will not rise substantially above the price at which they can be redeemed. The Issuer may be expected to redeem the Notes when its cost of borrowing is lower than the interest rate on the Notes. At those times, an investor generally would not be able to reinvest the redemption proceeds at an effective interest rate as high as the interest rate on the Notes being redeemed and may only be able to do so at a significantly lower rate of return. Potential investors should consider reinvestment risk in light of other investments available at that time. Most of the events triggering early redemption are outside the control of the Issuer and the Guarantor. In particular, tax rules applicable to financing instruments such as the Notes are subject to change from time to time and while the Issuer and the Guarantor have taken steps to confirm the tax treatment of the Notes, including consulting with tax advisers and submitting the terms of the proposed instrument to the Luxembourg tax authorities, there can be no assurance as to whether no Gross-up Event or Tax Event will occur. Risk due to the subordination of the Notes. The Terms and Conditions provide that the Notes constitute subordinated obligations of the Issuer, ranking pari passu among themselves, pari passu with all Parity Obligations of the Issuer and senior only to the Junior Obligations of the Issuer. In the event of the liquidation or insolvency, or any other proceedings for the avoidance of insolvency, of, or against, the Issuer, the obligations under the Notes shall be fully subordinated to all other present and future obligations of the Issuer (except for Parity Obligations of the Issuer and Junior Obligations of the Issuer), whether subordinated or unsubordinated, except as otherwise provided by mandatory provisions of law or as expressly provided for by the terms of the relevant instrument so that in any such event no amounts shall be payable in respect of the Notes unless all claims that rank senior to the Notes have been satisfied in full. In any such event, Holders will not receive any amounts payable in respect of the Notes until the claims of all Issuer's senior ranking claims have first been satisfied in full. Holders must accept that, in the circumstances described above, (i) the Issuer will make payments in respect of the Notes only in accordance with the subordination described above, and (ii) the rights of the Holders under the Notes will be subject to the provisions of the insolvency laws applicable to the Issuer from time to time. If the Issuer's financial condition were to deteriorate, the Holders could suffer direct and materially adverse consequences. There is a significant risk that Holders of Notes will lose all or some of its investment should the Issuer become insolvent. Risk due to the subordination of the claims under the Subordinated Guarantee. The Guarantor's obligations under the Subordinated Guarantee are unsecured subordinated obligations of the Guarantor ranking pari passu among themselves, pari passu with all Parity Obligations of the Guarantor and senior only to the Junior Obligations of the Guarantor. In the event of the liquidation or insolvency, or any other proceedings for the avoidance of insolvency, of, or against, the Guarantor, the obligations under the Subordinated Guarantee shall be fully subordinated to all other present and future obligations of the Guarantor (except for Parity Obligations of the Guarantor and Junior Obligations of the Guarantor), whether subordinated or unsubordinated, except as otherwise provided by mandatory provisions of law or as expressly provided for by the terms of the relevant instrument so that in any such event no amounts shall be payable in respect of the Subordinated Guarantee unless all claims that rank senior to the Subordinated Guarantee have been satisfied in full. In any such event, Holders will not receive any amounts payable in respect of the Subordinated Guarantee until the claims of all Guarantor's senior ranking claims have first been satisfied in full. Investors should take into consideration that liabilities ranking senior to the Subordinated Guarantee may also arise out of events that are not reflected on the Guarantor's balance sheet, including, without limitation, the issuance of guarantees or other payment undertakings. Claims of beneficiaries under such guarantees or other payment undertakings will, in liquidation or insolvency proceedings of the Guarantor, become

27 27 unsubordinated or subordinated liabilities and will therefore be paid in full before payments are made to Holders. The beneficiaries under the Subordinated Guarantee have limited rights in German insolvency proceedings. In insolvency proceedings instituted in Germany in respect of the assets of the Guarantor, claims against the Guarantor under the Subordinated Guarantee would be treated as deeply subordinated insolvency claims (nachrangige Insolvenzforderungen). According to 174 paragraph 3 of the German Insolvency Code, deeply subordinated insolvency claims must not be registered with the insolvency court unless the insolvency court handling the case has granted special permission allowing these deeply subordinated insolvency claims to be filed which is not the rule, but the exception. The beneficiaries of the Subordinated Guarantee would not participate in any creditors' committee (Gläubigerausschuss) and would have very limited rights within the creditors' assembly (Gläubigerversammlung). They may be invited to participate in the creditors' assembly, but would not be entitled to vote within such meetings ( 77 paragraph 1 of the German Insolvency Code). In case of insolvency plan proceedings (Insolvenzplanverfahren) the beneficiaries under the Subordinated Guarantee generally would have no voting right on the adoption of an insolvency plan presented by the Guarantor, the relevant insolvency administrator or custodian ( 237 and 246 of the German Insolvency Code). In addition, their claims would be waived after the adoption of the insolvency plan unless the insolvency plan makes an exception to this general rule ( 225 paragraph 1 German Insolvency Code). No limitation on issuing senior or pari passu securities or other liabilities. Other than the limitation of indebtedness undertaking in the Syndicated Credit Facilities Agreement and financial covenants in the Syndicated Credit Facilities Agreement and the Notes Purchase Agreement, there is no restriction on the amount of securities or other liabilities which the Issuer and the Guarantor may issue, incur or guarantee and which rank senior to, or pari passu with, the Notes and the Subordinated Guarantee, respectively. The issue of any such securities, the granting of any such guarantees or the incurrence of any such other liabilities may reduce the amount (if any) recoverable by Holders on the insolvency, winding-up, liquidation or dissolution of the Issuer or the Guarantor and/or may increase the likelihood of a deferral of Interest Payments under the Notes. The Holders of the Notes are exposed to risks relating to fixed interest notes. The Notes bear interest at a fixed rate from and including the Interest Commencement Date to but excluding the First Call Date, which will be reset from and including the First Call Date for subsequent periods of five years. Holders are exposed to the risk that the price of such Notes may fall because of changes in the market yield. While the nominal interest rate (i.e. the coupon) of the Notes is initially fixed until the First Call Date, and thereafter reset and fixed for subsequent periods of five years, the market yield typically changes on a daily basis. As the market yield changes, the price of the Notes changes in the opposite direction. If the market yield increases, the price of the Notes typically falls. If the market yield falls, the price of the Note typically increases. Holders should be aware that movements of the market yield can adversely affect the price of the Notes and can lead to losses for the Holders. Holders should also be aware that the market yield has two components, namely the risk free rate and the credit spread. The credit spread is reflective of the yield that investors require in addition to the yield on a risk free investment of equal tenor as a compensation for the risks inherent in the Notes. The market yield of the Notes can change due to changes of the credit spread, the risk free rate, or both. In addition, Holders are exposed to reinvestment risk with respect to proceeds from coupon payments or early redemptions by the Issuer. If the market yield declines, and if Holders want to invest such proceeds in comparable transactions, Holders will only be able to reinvest such proceeds in comparable transactions at the then prevailing lower market yields. The Holders of the Notes are exposed to risks relating to the reset of interest rates linked to the 5- year swap rate. From and including the First Call Date, each Note bears interest at a rate per annum equal to the applicable Reset Rate of Interest. The Reset Rate of Interest (i) equals the annual swap rate for Euro swap transactions with a term of 5 years plus a constant margin, (ii) is applicable for a five year period (or for a shorter period in case the Notes are redeemed), and (iii) is re-calculated every five years. Investors should be aware that the future performance of the annual swap rate for Euro swap transactions with a term of 5 years and hence the

28 28 interest income on the Notes cannot be anticipated. Due to varying interest income, investors may not able to determine a definite yield of the Notes at the time they purchase them, so that their return on investment cannot be compared with that of investments without resetting nominal interest rates. As mentioned under " The Holders of the Notes are exposed to risks relating to fixed interest notes", the market yield has two components, namely the risk free rate and the credit spread. Holders should be aware that the Reset Rate of Interest is calculated by adding a constant margin (a proxy for the credit spread of the Notes at the time of issuance) to the annual swap rate for Euro swap transactions with a term of 5 years prevailing at the relevant Reset Date. Although the coupon is adjusted every 5 years to the then prevailing market level (i.e. the annual swap rate for Euro swap transactions with a term of 5 years), the second component of the coupon (i.e. the constant margin) is kept unchanged and may not reflect the credit spread of the Notes at the time of the reset. The Notes do not include express events of default or a cross default. The Holders of the Notes should be aware that the Terms and Conditions of the Notes do not contain any express event of default provisions. There will also not be any cross default under the Notes. The Notes do not contain any financial covenants. The Issuer will not be restricted from incurring additional unsecured debt or other liabilities, including senior debt, under the terms of the Notes. If the Issuer incurs additional debt or liabilities, the Issuer's ability to pay its obligations on the Notes could be adversely affected. In addition, under the Notes, the Issuer will not be restricted from paying dividends or issuing or repurchasing their other securities. Holders of Notes will not be protected under the terms of the Notes in the event of a highly leveraged transaction, a reorganization or a restructuring, merger or similar transaction that may adversely affect Holders. The Holders of the Notes have no voting rights. The Notes are non-voting with respect to general meetings of shareholders of the Issuer or the Guarantor. Consequently, the Holders of the Notes cannot influence any decisions by the Issuer to defer interest payments or to optionally settle such Arrears of Interest or any other decisions by the Issuer's or the Guarantor's shareholders concerning the capital structure or any other matters relating to the Issuer or the Guarantor. The Holders' only remedy against the Issuer is the institution of legal proceedings to enforce payment or to file an application for insolvency proceedings. Subject to the Subordinated Guarantee, the only remedy against the Issuer available to the Holders of the Notes for recovery of amounts which have become due in respect of the Notes will be the institution of legal proceedings to enforce payment of the amounts or to file an application for the institution of insolvency proceedings. On an insolvency or liquidation of the Issuer, any Holder may only claim the amounts due and payable under the Notes, after the Issuer has discharged or secured in full (i.e. not only with a quota) all claims that rank senior to the Notes. The Holders' only remedy against the Guarantor is the institution of legal proceedings to enforce payment or to file an application for insolvency proceedings. The only remedy against the Guarantor available to the Holders of the Notes for recovery of amounts which have become due in respect of the Subordinated Guarantee will be the institution of legal proceedings to enforce payment of the amounts or to file an application for the institution of insolvency proceedings. On an insolvency or liquidation of the Guarantor, any Holder may only claim the amounts due and payable under the Subordinated Guarantee, after the Guarantor has discharged or secured in full (i.e. not only with a quota) all claims that rank senior to the Subordinated Guarantee. Risk in connection with German Act on Issues of Debt Securities. Pursuant to the Terms and Conditions of the Notes, the Holders may agree with the Issuer by majority resolution to amendments of the Terms and Conditions of the Notes in accordance with and subject to the German Act on Issues of Debt Securities (Gesetz über Schuldverschreibungen aus Gesamtemissionen "SchVG"). Therefore, a Holder is subject to the risk of being outvoted by a majority resolution of such Holders and losing rights towards the Issuer and the Guarantor against his will in the event that Holders holding a sufficient aggregate nominal amount of the Notes participate in the vote and agree to amend the Terms and Conditions of the Notes or the Subordinated Guarantee or on other matters relating to the Notes or the Subordinated Guarantee by majority vote in accordance with the Terms and Conditions of the Notes and the SchVG. As such majority resolution is binding on all Holders of the Notes, including Holders who did not attend and vote at the relevant meeting and Holders who voted in a manner contrary to the majority,

29 29 certain rights of such Holder against the Issuer under the Terms and Conditions of the Notes may be amended or reduced or even cancelled. In addition, the Holders' rights to convene a Holders' meeting and to solicit a Holders' resolution are limited as, pursuant to section 9 paragraph 1 of the SchVG, a holders' meeting will only be convened if Holders jointly holding at least 5% of the outstanding Notes request such convocation in writing stating their particular interest in convening such a meeting. In case of an appointment of a joint representative (gemeinsamer Vertreter) for all Holders, it is possible that a Holder may be deprived of its individual right to pursue and enforce its rights under the Terms and Conditions of the Notes against the Issuer, such right passing to the joint representative who is then exclusively responsible to claim and enforce the rights of all the Holders. There has been no prior market for the Notes, a liquid market may not develop and the Notes may be subject to significant market price volatility. The Notes constitute a new issue of securities. Prior to their issue, there has been no public market for the Notes. Although application has been made to the Luxembourg Stock Exchange to list the Notes on its official list and to admit the Notes to trading on the Euro MTF operated by the Luxembourg Stock Exchange, there can be no assurance that an active public market for the Notes will develop. Even if such a market were to develop, neither the Issuer nor the Lead Manager nor any other person is obligated to maintain it. In an illiquid market, an investor might not be able to sell his Notes at all or at any time at fair market prices. The possibility to sell the Notes might additionally be restricted due to country-specific reasons. Moreover, the liquidity and the market for the Notes can be expected to vary with changes in the securities market and economic conditions, the financial condition and prospects of the Issuer and other factors which generally influence the market prices of securities. Such fluctuations may significantly affect liquidity and market prices for the Notes. Furthermore, the comparatively small issue volume may also affect liquidity for the Notes since there usually is limited secondary trading activity in such Notes. Market liquidity in hybrid financial instruments similar to the Notes has historically been limited. In addition, potential investors should note that hybrid financial instruments similar to the Notes have experienced pronounced price fluctuations in connection with the crisis of the financial markets and the banking sector since The development of market prices of the Notes depends on various factors. The market value of the Notes is influenced by a change in the creditworthiness (or the perception thereof) of the Issuer and a number of other factors including market interest and rate of return and the remaining time until the day of maturity. The development of market prices of the Notes depends on various factors, such as changes of market interest rate levels, the policies of central banks, overall economic developments, inflation rates or the lack of or excess demand for the relevant type of Note. The Holders are therefore exposed to the risk of an unfavourable development of market prices of their Notes which materialise if the Holders sell the Notes prior to their redemption. If a holder of Notes decides to hold the Notes until the Issuer calls the Notes for redemption, the Notes will be redeemed at par or, if called prior to the First Call Date or in the absence of a Gross-Up Event or a Change of Control Event, at the relevant redemption price (See also " There is a risk of early redemption."). The trading market for debt securities may be volatile and may be adversely impacted by many events. The market for debt securities issued by the Issuer is influenced by a number of interrelated factors, including economic, financial and political conditions and events in Germany as well as economic conditions and, to varying degrees, market conditions, interest rates, currency exchange rates and inflation rates in other European and other industrialised countries. There can be no assurance that events in Germany, Europe or elsewhere will not cause market volatility or that such volatility will not adversely affect the price of the Notes or that economic and market conditions will not have any other adverse effect. Accordingly, the price at which a Holder will be able to sell its Notes prior to maturity may be at a discount, which could be substantial, from the issue price or the purchase price paid by such Holder. The market value of the Notes could decrease if the creditworthiness of the Issuer or the Guarantor worsens. If the likelihood decreases that the Issuer and the Guarantor, respectively, will be in a position to make scheduled payments on the Notes and perform other obligations under the Notes and the Subordinated Guarantee, respectively, for example, because of the materialisation of any of the risks regarding the Issuer or the Guarantor, the market value of the Notes will fall.

30 30 Furthermore, investors are exposed to the risk that the credit spread of the Issuer and the Guarantor widens, also resulting in a decrease in the price of the Notes (credit spread risk). A credit spread is the margin payable by the Issuer to the holder of a Note as a premium for the assumed credit risk of the Issuer and the Guarantor. Credit spreads are offered and sold as premiums on current risk-free interest rates or as discounts on the price. Factors influencing the credit spread include, among other things (such as the liquidity situation or the general level of interest rates), the creditworthiness of the Issuer and the Guarantor, and the probability of default. In addition, even if the likelihood that the Issuer and the Guarantor, respectively, will be in position to fully perform all obligations under the Notes and the Subordinated Guarantee, respectively, when they fall due actually has not decreased, market participants could nevertheless have a different perception. Furthermore, the market participants' estimation of the creditworthiness of corporate debtors in general or debtors operating in the same business as the Issuer and the Guarantor could adversely change. If any of these risks materialises, third parties would only be willing to purchase Notes for a lower price than before the materialisation of mentioned risk. Under these circumstances, the market value of the Notes will decrease. The Notes may be traded with accrued interest, but under certain circumstances described above, subsequent interest payments may not be made in full or in part. The Notes may trade, and the prices for the Notes may appear on trading systems on which the Notes are traded, with accrued interest. If this occurs, purchasers of Notes in the secondary market will pay a price that includes such accrued interest upon the purchase of the Notes. However, if an interest payment is deferred (See also " Interest payments under the Notes may be deferred at the option of the Issuer."), purchasers of such Notes will not be entitled to an interest payment (in full or in part, as the case may be), and will not receive any compensation for an increased price paid due to accrued interest. An investment in the Notes may be subject to the risk of inflation. The inflation risk is the risk of future money depreciation. The real yield from an investment is reduced by inflation. The higher the rate of inflation, the lower the real yield on the Notes. If the inflation rate is equal to or higher than the nominal yield, the real yield is zero or even negative. Investors will have to rely on Euroclear's and Clearstream, Luxembourg's procedures for transfer, payment and communication with the Issuer. The Notes will be represented by one or more global notes. Such global notes will be deposited with a common depositary for Euroclear Bank SA/NV ("Euroclear") and Clearstream Banking, société anonyme ("Clearstream Luxembourg"). Investors will not be entitled to receive definitive notes. Euroclear and Clearstream, Luxembourg will maintain records of the beneficial interests in the global notes. While the Notes are represented by one or more global notes, investors will be able to trade their beneficial interests only through Euroclear and Clearstream, Luxembourg and the Issuer will discharge its payment obligations under the Notes by making payments to the common depositary for Euroclear and Clearstream, Luxembourg for distribution to their account holders. A holder of a beneficial interest in global notes must rely on the procedures of Euroclear and Clearstream, Luxembourg to receive payments under the Notes. The Issuer has no responsibility or liability for the records relating to, or payments made in respect of beneficial interest in, the global notes. The income under the Notes may be reduced by taxes. Potential purchasers and sellers of the Notes should be aware that they may be required to pay taxes or other documentary charges or duties in accordance with the laws and practices of the country where the Notes are transferred or other jurisdictions. In some jurisdictions, no official statements of the tax authorities or court decisions may be available for financial instruments such as the Notes. Potential investors are advised not to rely on the tax discussions contained in this Offering Circular but to ask for their own tax advisor's advice on their individual taxation with respect to the acquisition, sale and redemption of the Notes. Only these advisors are in a position to duly consider the specific situation of the potential investor. Incidental costs related in particular to the purchase and sale of the Notes may have a significant impact on the profit potential of the Notes. When Notes are purchased or sold, several types of incidental costs (including transaction fees and commissions) may be incurred in addition to the purchase or sale price of the Notes. These incidental costs may significantly reduce or eliminate any profit from holding the Notes. Credit institutions as a rule charge commissions which are either fixed minimum commissions or pro-rata commissions, depending on the order value. To the extent that additional, domestic or foreign, parties are involved in the execution of an order, including but not limited to domestic dealers or brokers in foreign markets, investors may also be charged for

31 31 the brokerage fees, commissions and other fees and expenses of such parties (third party costs). In addition to such costs directly related to the purchase of Notes (direct costs), investors must also take into account any follow-up costs (such as custody fees). Investors should inform themselves about any additional costs incurred in connection with the purchase, custody or sale of the Notes before investing in the Notes. No assurance can be given as to the impact of any possible judicial decision or change of laws or administrative practices after the date of this Offering Circular. The Terms and Conditions of the Notes are based on the laws of the Federal Republic of Germany in effect as at the date of this Offering Circular. No assurance can be given as to the impact of any possible judicial decision or change to German law or administrative practice or the official application or interpretation of German law after the date of this Offering Circular. A potential investor may not rely on the Issuer, the Guarantor, the Lead Manager or any of their respective affiliates in connection with its determination as to the legality of its acquisition of the Notes. Each potential investor in the Notes must determine, based on its own independent review and such professional advice as it deems appropriate under the circumstances, that its acquisition of the Notes is fully consistent with its (or if it is acquiring the Notes in a fiduciary capacity, the beneficiary's) financial needs, objectives and condition, complies and is fully consistent with all investment policies, guidelines and restrictions applicable to it (whether acquiring the Notes as principal or in a fiduciary capacity) and is a fit, proper and suitable investment for it (or if it is acquiring the Notes in a fiduciary capacity, for the beneficiary), notwithstanding the clear and substantial risks inherent in investing in or holding the Notes. A potential investor may not rely on the Issuer, the Guarantor, the Lead Manager or any of their respective affiliates in connection with its determination as to the legality of its acquisition of the Notes or as to the other matters referred to above. Without independent review and advice, an investor may not adequately understand the risks inherent with an investment in the Notes and may lose parts or all of his capital invested without taking such or other risks into consideration before investing in the Notes. Exchange rate risks and exchange controls. The Notes are denominated in Euro. Potential investors should bear in mind that an investment in the Notes involves currency risks. This presents certain risks relating to currency conversions if a Holder's financial activities are denominated principally in a currency or currency unit (the "investor's currency") other than Euro. These include the risk that exchange rates may change significantly (including changes due to devaluation of the Euro or revaluation of the investor's currency) and the risk that authorities with jurisdiction over the investor's currency may impose or modify exchange controls. An appreciation in the value of the investor's currency relative to the Euro would decrease (i) the investor's currency-equivalent yield on the Notes, (ii) the investor's currency equivalent value of the principal payable on the Notes and (iii) the investor's currency-equivalent market value of the Notes. In addition, government and monetary authorities may impose (as some have done in the past) exchange controls that could adversely affect an applicable currency exchange rate. As a result Holders may receive less interest or principal than expected, or no interest or principal. Taxation Investors should be aware that duties, other taxes and expenses, including any stamp duty, depositary charges, transaction charges and other charges, may be levied in accordance with the laws and practices in the countries where the Notes are transferred and that it is the obligation of an investor to pay all such duties, other taxes and expenses. All payments made under the Notes shall be made free and clear of, and without withholding or deduction for, any present or future taxes imposed by the Issuer's or the Guarantor s country of incorporation (or any authority or political subdivision thereof or therein), unless such withholding or deduction is imposed or required by law. If any such withholding or deduction is imposed and required by law, the Issuer or the Guarantor will, in limited circumstances, be required to pay additional amounts to cover the amounts so withheld or deducted ("Additional Amounts") and such event will allow the Issuer to redeem them early as this would be an 'Issuer Tax Event'. In no event will Additional Amounts be payable in respect of U.S. withholding taxes pursuant to the U.S. "Foreign Account Tax Compliance Act". Investors should be aware that payments made under the Notes and capital gains from the sale or redemption of the Notes may be subject to taxation in the jurisdiction of the holder of the Notes or in other jurisdictions in which he the holder of the Notes is required to pay taxes. Section "Taxation" below contains a

32 32 general description of certain tax considerations relating to the purchasing, holding and disposing of the Notes in relation to the Grand Duchy of Luxembourg and the Federal Republic of Germany. Payments on the Notes may be subject to U.S. withholding under the Foreign Account Tax Compliance Act. The U.S. "Foreign Account Tax Compliance Act" (or "FATCA") imposes a new reporting regime and, potentially, a 30% withholding tax with respect to (i) certain payments from sources within the United States, (ii) "foreign passthru payments" made to certain non-u.s. financial institutions that do not comply with this new reporting regime, and (iii) payments to certain investors that do not provide identification information with respect to interests issued by a participating non-u.s. financial institution. Whilst the Notes are in global form and held within the Clearing System, in all but the most remote circumstances, it is not expected that FATCA will affect the amount of any payment received by the Clearing System. However, FATCA may affect payments made to custodians or intermediaries in the subsequent payment chain leading to the ultimate investor if any such custodian or intermediary generally is unable to receive payments free of FATCA withholding. It also may affect payment to any ultimate investor that is a financial institution that is not entitled to receive payments free of withholding under FATCA, or an ultimate investor that fails to provide its broker (or other custodian or intermediary from which it receives payment) with any information, forms, other documentation or consents that may be necessary for the payments to be made free of FATCA withholding. Investors should choose the custodians or intermediaries with care (to ensure each is compliant with FATCA or other laws or agreements related to FATCA) and provide each custodian or intermediary with any information, forms, other documentation or consents that may be necessary for such custodian or intermediary to make a payment free of FATCA withholding. The Issuer's obligation under the Notes is discharged once it has paid the Clearing System, and the Issuer has therefore no responsibility for any amount thereafter transmitted through the Clearing System and custodians or intermediaries. Prospective investors should refer to the section "Taxation Foreign Account Tax Compliance Act". The Financial Transactions Tax could apply to certain dealings in the Notes. The European Commission has published an original proposal for a directive for a common financial transactions tax ("FTT") in Belgium, Germany, Estonia, Greece, Spain, France, Italy, Austria, Portugal, Slovenia and Slovakia (the "participating Member States"). The FTT, as originally proposed, has very broad scope and could apply to certain dealings in financial instruments (including secondary market transactions), including the Notes, in certain circumstances. The issuance and subscription of financial instruments should, however, be exempt. Under current proposals the FTT could apply in certain circumstances to persons both within and outside of the participating Member States. Generally, it would apply to certain dealings in financial instruments where at least one party is a financial institution, and at least one party is established in a participating Member State. A financial institution may be, or be deemed to be, "established" in a participating Member State in a broad range of circumstances, including (a) by transacting with a person established in a participating Member State or (b) where the financial instrument which is subject to the dealings is issued in a participating Member State. According to a recent press announcement of the EU Council, ten participating Member States, including Germany, currently intend to introduce an amended FTT as of 1 January Compared to the original proposal, the new proposal for a FTT has a limited scope only with respect to the financial instruments concerned and shall only apply to shares and certain derivatives. However, many details remain unclear and the currently proposed FTT might also be altered again prior to any implementation. The FTT proposal remains subject to negotiation between the participating Member States and was (and most likely will be) the subject of legal challenge. Additional EU Member States may decide to participate. Prospective holders of Notes are advised to seek their own professional advice in relation to the FTT.

33 33 TERMS AND CONDITIONS OF THE NOTES ANLEIHEBEDINGUNGEN TERMS AND CONDITIONS 1 Definitionen und Auslegung Soweit aus dem Zusammenhang nicht etwas anderes hervorgeht, haben die nachfolgenden Begriffe in diesen Anleihebedingungen die folgende Bedeutung: "180 Tage-Periode" hat die in 6(6) festgelegte Bedeutung. "5-Jahres-Swapsatz-Angebotssätze" hat die in 4(3) festgelegte Bedeutung. "Aufgeschobene Zinszahlungen" hat die in 5(1)(a) festgelegte Bedeutung. "Ausgabetag" hat die in 2(1) festgelegte Bedeutung. "Außenstehende Person" hat die in 6(6) festgelegte Bedeutung. "Austauschtag" hat die in 2(3)(b) festgelegte Bedeutung. "Berechnungsstelle" hat die in 10(2) festgelegte Bedeutung. 1 Definitions and Interpretation Unless the context otherwise requires, the following terms shall have the following meanings in these Terms and Conditions: "180-day period" has the meaning specified in 6(6). "5 year Swap Rate Quotations" has the meaning specified in 4(3). "Arrears of Interest" has the meaning specified in 5(1)(a). "Issue Date" has the meaning specified in 2(1). "Third Party Person" has the meaning specified in 6(6). "Exchange Date" has the meaning specified in 2(3)(b). "Calculation Agent" has the meaning specified in 10(2). "CBL" hat die in 2(4) festgelegte Bedeutung. "CBL" has the meaning specified in 2(4). "Clearing System" hat die in 2(4) festgelegte Bedeutung. "Dauerglobalurkunde" hat die in 2(3)(a) festgelegte Bedeutung. "Depotbank" hat die in 15(3) festgelegte Bedeutung. "Emittentin" hat die in 2(1) festgelegte Bedeutung. "Erster Rückzahlungstermin" hat die in 4(2)(i) festgelegte Bedeutung. "Euroclear" hat die in 2(4) festgelegte Bedeutung. "Festgelegte Stückelung" hat die in 2(1) festgelegte Bedeutung. "Festgelegte Währung" hat die in 2(1) festgelegte Bedeutung. "Feststellungsperiode" hat die in 4(8) festgelegte Bedeutung. "Feststellungstermin" hat die in 4(8) festgelegte Bedeutung. "Clearing System" has the meaning specified in 2(4). "Permanent Global Note" has the meaning specified in 2(3)(a). "Depositary Bank" has the meaning specified in 15(3). "Issuer" has the meaning specified in 2(1). "First Call Date" has the meaning specified in 4(2)(i). "Euroclear" has the meaning specified in 2(4). "Specified Denomination" has the meaning specified in 2(1). "Specified Currency" has the meaning specified in 2(1). "Determination Period" has the meaning specified in 4(8). "Determination Date" has the meaning specified in 4(8). "Fitch" hat die in 6(6) festgelegte Bedeutung. "Fitch" has the meaning specified in 6(6).

34 34 "Garantiebestätigung" hat die in 13(1)(e) festgelegte Bedeutung. "Garantin" hat die in 3(2) festgelegte Bedeutung. "Gemeinsamer Vertreter" hat die in 14(6) festgelegte Bedeutung. "Gesamtnennbetrag" hat die in 2(1) festgelegte Bedeutung. "Geschäftstag" hat die in 5(1)(a) festgelegte Bedeutung. "Gläubiger" hat die in 2(5) festgelegte Bedeutung. "Gleichrangige Verbindlichkeiten" hat die in 3(1) festgelegte Bedeutung. "Globalurkunde" hat die in 2(3)(a) festgelegte Bedeutung. "Hauptzahlstelle" hat die in 10(1) festgelegte Bedeutung. "Guarantee Confirmation" has the meaning specified in 13(1)(e). "Guarantor" has the meaning specified in 3(2). "Holders' Representative" has the meaning specified in 14(6). "Aggregate Principal Amount" has the meaning specified in 2(1). "Business Day" has the meaning specified in 5(1)(a). "Holder" has the meaning specified in 2(5). "Parity Obligations" has the meaning specified in 3(1). "Global Note" has the meaning specified in 2(3)(a). "Principal Paying Agent" has the meaning specified in 10(1). "ICSD" hat die in 2(4) festgelegte Bedeutung. "ICSD" has the meaning specified in 2(4). "ICSDs" hat die in 2(4) festgelegte "ICSDs" has the meaning specified in 2(4). Bedeutung. "IFRS" bezeichnet die internationalen Rechnungslegungsstandards im Sinne der Verordnung (EG) Nr. 1606/2002 des Europäischen Parlaments und des Rates vom 19. Juli 2002 betreffend die Anwendung internationaler Rechnungslegungsstandards in der jeweils geltenden Fassung. "Internal Revenue Code" hat die in 8(1)(h) festgelegte Bedeutung. "Kontrollwechselereignis" hat die in 6(6) festgelegte Bedeutung. "Kontrollwechselmitteilung" hat die in 6(6) festgelegte Bedeutung. "Kontrollwechsel-Stichtag" hat die in 6(6) festgelegte Bedeutung. "Marge" hat die in 4(3) festgelegte Bedeutung. "Moody's" hat die in 6(6) festgelegte Bedeutung. "Nachrangige Garantie" hat die in 3(2) festgelegte Bedeutung. "Nachrangige Verbindlichkeiten" hat die in 3(1) festgelegte Bedeutung. "Negatives Ratingereignis" hat die in 6(6) festgelegte Bedeutung. "Neue Anleiheschuldnerin" hat die in 13(1) festgelegte Bedeutung. "IFRS" means international accounting standards within the meaning of the Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards, as amended from time to time. "Internal Revenue Code" has the meaning specified in 8(1)(h). "Change of Control Event" has the meaning specified in 6(6). "Change of Control Notice" has the meaning specified in 6(6). "Change of Control Effective Date" has the meaning specified in 6(6). "Margin" has the meaning specified in 4(3). "Moody's" has the meaning specified in 6(6). "Subordinated Guarantee" has the meaning specified in 3(2). "Junior Obligations" has the meaning specified in 3(1). "Negative Rating Event" has the meaning specified in 6(6). "New Debtor" has the meaning specified in 13(1).

35 35 "Person" hat die in 3(1) festgelegte Bedeutung. "Pflichtnachzahlungsereignis" hat die in 5(3) festgelegte Bedeutung. "Pflichtnachzahlungstermin" hat die in 5(3) festgelegte Bedeutung. "Quellensteuer-Ereignis" hat die in 6(4) festgelegte Bedeutung. "Rating" hat die in 6(6) festgelegte Bedeutung. "Ratingagentur" hat die in 6(6) festgelegte Bedeutung. "Rechnungslegungsereignis" hat die in 6(4) festgelegte Bedeutung. "Rechtsstreitigkeiten" hat die in 15(2) festgelegte Bedeutung. "Referenzanpassungstermin" hat die in 4(3) festgelegte Bedeutung. "Relevante Transaktion" hat die in 6(6) festgelegte Bedeutung. "Reset-Bildschirmseite" hat die in 4(3) festgelegte Bedeutung. "Reset-Referenzbanken" hat die in 4(3) festgelegte Bedeutung. "Reset-Referenzbankensatz" hat die in 4(3) festgelegte Bedeutung. "Reset-Referenzsatz" hat die in 4(3) festgelegte Bedeutung. "Reset-Termin" hat die in 4(3) festgelegte Bedeutung. "Reset-Zeitraum" hat die in 4(3) festgelegte Bedeutung. "Reset-Zinssatz" hat die in 4(3) festgelegte Bedeutung. "Rückzahlungstermin" bezeichnet den Tag, an dem die Schuldverschreibungen nach Maßgabe dieser Anleihebedingungen zur Rückzahlung fällig werden. "Person" has the meaning specified in 3(1). "Mandatory Payment Event" has the meaning specified in 5(3). "Mandatory Settlement Date" has the meaning specified in 5(3). "Gross-up Event" has the meaning specified in 6(4). "Rating" has the meaning specified in 6(6). "Rating Agency" has the meaning specified in 6(6). "Accounting Event" has the meaning specified in 6(4). "Proceedings" has the meaning specified in 15(2). "Reference Reset Date" has the meaning specified in 4(3). "Relevant Transaction" has the meaning specified in 6(6). "Reset Screen Page" has the meaning specified in 4(3). "Reset Reference Banks" has the meaning specified in 4(3). "Reset Reference Bank Rate" has the meaning specified in 4(3). "Reset Reference Rate" has the meaning specified in 4(3). "Reset Date" has the meaning specified in 4(3). "Reset Period" has the meaning specified in 4(3). "Reset Rate of Interest" has the meaning specified in 4(3). "Redemption Date" means the day on which the Notes become due for redemption in accordance with these Terms and Conditions. "S&P" hat die in 6(6) festgelegte Bedeutung. "S&P" has the meaning specified in 6(6). "Schuldverschreibungen" hat die in 2(1) "Notes" has the meaning specified in 2(1). festgelegte Bedeutung. "SchVG" hat die in 14(1) festgelegte "SchVG" has the meaning specified in 14(1). Bedeutung. "Steuerereignis" hat die in 6(4) festgelegte Bedeutung. "TARGET-Geschäftstag" hat die in 4(3) festgelegte Bedeutung. "Tax Event" has the meaning specified in 6(4). "TARGET Business Day" has the meaning specified in 4(3). "Tochterunternehmen" hat die in 3(1) "Subsidiary" has the meaning specified in

36 36 festgelegte Bedeutung. 3(1). "Verbundenes Unternehmen" hat die in 6(6) "Affiliate" has the meaning specified in 6(6). festgelegte Bedeutung. "Vereinigte Staaten" hat die in 2(3)(b) festgelegte Bedeutung. "Verzinsungsbeginn" hat die in 4(1)(a) festgelegte Bedeutung. "Vorläufige Globalurkunde" hat die in 2(3)(a) festgelegte Bedeutung. "Wechsel der Beteiligungsverhältnisse" hat die in 6(6) festgelegte Bedeutung. "Zahlstelle" hat die in 10(5) festgelegte Bedeutung. "Zahlstellen" hat die in 10(5) festgelegte Bedeutung. "Zinsberechnungszeitraum" hat die in 4(8) festgelegte Bedeutung. "Zinsbetrag" hat die in 4(5) festgelegte Bedeutung. "Zinsfestlegungstag" hat die in 4(3) festgelegte Bedeutung. "Zinsperiode" hat die in 4(3) festgelegte Bedeutung. "Zinssatz" hat die in 4(2) festgelegte Bedeutung. "Zinstagequotient" hat die in 4(8) festgelegte Bedeutung. "Zinszahlungstag" hat die in 4(1)(b) festgelegte Bedeutung. "Zusätzliche Beträge" hat die in 8(1) festgelegte Bedeutung. "United States" has the meaning specified in 2(3)(b). "Interest Commencement Date" has the meaning specified in 4(1)(a). "Temporary Global Note" has the meaning specified in 2(3)(a). "Change of Ownership" has the meaning specified in 6(6). "Paying Agent" has the meaning specified in 10(5). "Paying Agents" has the meaning specified in 10(5). "Calculation Period" has the meaning specified in 4(8). "Interest Amount" has the meaning specified in 4(5). "Interest Determination Date" has the meaning specified in 4(3). "Interest Period" has the meaning specified in 4(3). "Rate of Interest" has the meaning specified in 4(2). "Day Count Fraction" has the meaning specified in 4(8). "Interest Payment Date" has the meaning specified in 4(1)(b). "Additional Amounts" has the meaning specified in 8(1). 2 Währung, Gesamtnennbetrag, Stückelung, Form und Clearing System (1) Währung, Gesamtnennbetrag, Stückelung, Übertragung. Diese Emission von nachrangigen Schuldverschreibungen (die "Schuldverschreibungen") der VTG Finance S.A. (die "Emittentin") wird am 26. Januar 2015 (der "Ausgabetag") in Euro (die "Festgelegte Währung") im Gesamtnennbetrag von (in Worten: Euro zweihundertfünfzig Millionen) (der "Gesamtnennbetrag") in einer Stückelung von Euro (die "Festgelegte Stückelung") unter der nachrangigen Garantie der Garantin begeben. Die Schuldverschreibungen sind nur in einem Nennbetrag von 2 Currency, Aggregate Principal Amount, Denomination, Form, Clearing System (1) Currency, Aggregate Principal Amount, Denomination, Transfer. This issue of subordinated notes (the "Notes") of VTG Finance S.A. (the "Issuer") is being issued in Euro (the "Specified Currency") on 26 January 2015 (the "Issue Date") in the aggregate principal amount of 250,000,000 (in words: Euro two-hundred-fifty million) (the "Aggregate Principal Amount") in a denomination of 1,000 (the "Specified Denomination") guaranteed on a subordinated basis by the Guarantor. The Notes are only transferable in minimum aggregate principal amounts of 100,000 and any integral multiples of

37 37 mindestens Euro und jedem darüber hinausgehenden ganzzahligen Vielfachen von Euro übertragbar. (2) Form. Die Schuldverschreibungen lauten auf den Inhaber. 1,000 in excess thereof. (2) Form. The Notes are being issued in bearer form. (3) Vorläufige Globalurkunde Austausch. (3) Temporary Global Note Exchange. (a) Die Schuldverschreibungen sind anfänglich durch eine vorläufige (a) Globalurkunde (die "Vorläufige (b) Globalurkunde") ohne Zinsscheine verbrieft. Die vorläufige Globalurkunde wird gegen Schuldverschreibungen in der Festgelegten Stückelung, die durch eine Dauerglobalurkunde (die "Dauerglobalurkunde" und, gemeinsam mit der Vorläufigen Globalurkunde, jeweils die "Globalurkunde") ohne Zinsscheine verbrieft sind, ausgetauscht. Die Vorläufige Globalurkunde und die Dauerglobalurkunde tragen jeweils die Unterschriften ordnungsgemäß bevollmächtigter Vertreter der Emittentin und sind jeweils von der Zahlstelle oder in deren Namen mit einer Kontrollunterschrift versehen. Einzelurkunden und Zinsscheine werden nicht ausgegeben. Die Vorläufige Globalurkunde wird frühestens an einem Tag (der "Austauschtag") gegen die Dauerglobalurkunde austauschbar, der 40 Tage nach dem Tag der Ausgabe der Vorläufigen Globalurkunde liegt. Ein solcher Austausch soll nur nach Vorlage von Bescheinigungen gemäß U.S. Steuerrecht erfolgen, wonach der oder die wirtschaftlichen Eigentümer der durch die Vorläufige Globalurkunde verbrieften Schuldverschreibungen keine U.S.-Personen sind (ausgenommen bestimmte Finanzinstitute oder bestimmte Personen, die Schuldverschreibungen über solche Finanzinstitute halten). Zinszahlungen auf durch eine Vorläufige Globalurkunde verbriefte Schuldverschreibungen erfolgen erst nach Vorlage solcher Bescheinigungen. Eine gesonderte Bescheinigung ist hinsichtlich einer jeden solchen Zinszahlung erforderlich. Jede Bescheinigung, die am oder nach dem 40. Tag (b) The Notes are initially represented by one temporary global note (the "Temporary Global Note") without interest coupons. The Temporary Global Note will be exchanged for Notes in the Specified Denomination represented by a permanent global note (the "Permanent Global Note" and together with the Temporary Global Note, the "Global Note") without interest coupons. The Temporary Global Note and the Permanent Global Note shall each be signed by authorised signatories of the Issuer and shall each be authenticated by or on behalf of the Paying Agent. Definitive certificates representing individual Notes and interest coupons will not be issued. The Temporary Global Note shall be exchangeable for the Permanent Global Note on a date (the "Exchange Date") not earlier than 40 days after the date of issue of the Temporary Global Note. Such exchange shall only be made upon delivery of certifications to the effect that the beneficial owner or owners of the Notes represented by the Temporary Global Note are not U.S. persons (other than certain financial institutions or certain persons holding Notes through such financial institutions) as required by U.S. tax law. Payment of interest on Notes represented by a Temporary Global Note will be made only after delivery of such certifications. A separate certification shall be required in respect of each such payment of interest. Any such certification received on or after the 40 th day after the date of issue of the Temporary Global Note will be treated as a request to exchange

38 38 nach dem Tag der Ausgabe der Vorläufigen Globalurkunde eingeht, wird als ein Ersuchen behandelt werden, diese Vorläufige Globalurkunde gemäß 2(3)(b) auszutauschen. Wertpapiere, die im Austausch für die Vorläufige Globalurkunde geliefert werden, sind nur außerhalb der Vereinigten Staaten zu liefern. Für die Zwecke von 2(3) und 7(1), bezeichnet "Vereinigte Staaten" die Vereinigten Staaten von Amerika (einschließlich deren Bundesstaaten und des District of Columbia) sowie deren Territorien (einschließlich Puerto Rico, der U.S. Virgin Islands, Guam, American Samoa, Wake Island und Northern Mariana Islands). (4) Clearing System. Jede die Schuldverschreibungen verbriefende Globalurkunde wird von einem oder im Namen eines Clearing Systems verwahrt. "Clearing System" meint Clearstream Banking, société anonyme, 42 Avenue JF Kennedy, 1855 Luxemburg, Luxemburg ("CBL"), Euroclear Bank SA/NV, Boulevard du Roi Albert II, 1210 Brüssel, Belgien ("Euroclear"), (CBL and Euroclear jeweils "ICSD" und zusammen die "ICSDs") sowie jeden Funktionsnachfolger. Die Schuldverschreibungen werden als klassische Globalurkunde (classical global note) begeben und werden von einer gemeinsamen Verwahrstelle im Namen beider ICSDs verwahrt. (5) Gläubiger von Schuldverschreibungen. "Gläubiger" bezeichnet jeden Inhaber eines Miteigentumsanteils oder anderen wirtschaftlichen Interesses oder Rechts an den Schuldverschreibungen. such Temporary Global Note pursuant to 2(3)(b). Any securities delivered in exchange for the Temporary Global Note shall be delivered only outside of the United States. For purposes of 2(3) and 7(1), "United States" means the United States of America (including the States thereof and the District of Columbia) and its possessions (including Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island and Northern Mariana Islands). (4) Clearing System. Each Global Note representing the Notes will be kept in custody by or on behalf of the Clearing System. "Clearing System" means each of the following: Clearstream Banking, société anonyme, 42 Avenue JF Kennedy, 1855 Luxembourg, Grand Duchy of Luxembourg ("CBL"), Euroclear Bank SA/NV, Boulevard du Roi Albert II, 1210 Brussels, Belgium ("Euroclear"), (CBL and Euroclear each an "ICSD" and together the "ICSDs") and any successor in such capacity. The Notes will be issued in classical global note form and will be kept in custody by a common depositary on behalf of both ICSDs. (5) Holder of Notes. "Holder" means any holder of a proportionate co-ownership or other beneficial interest or right in the Notes. 3 Status der Schuldverschreibungen, Aufrechnungsverbot (1) Status der Schuldverschreibungen. Die Schuldverschreibungen begründen direkte, (vorbehaltlich der Nachrangigen Garantie) nicht besicherte, nachrangige Verbindlichkeiten der Emittentin, die untereinander und mit jeder Gleichrangigen Verbindlichkeit der Emittentin gleichrangig sind und nur den Nachrangigen Verbindlichkeiten der Emittentin im Rang vorgehen; im Fall der 3 Status of the Notes, Prohibition of Set-Off (1) Status of the Notes. The obligations of the Issuer under the Notes constitute direct, (subject to the Subordinated Guarantee) unsecured and subordinated obligations of the Issuer, ranking pari passu among themselves, pari passu with all Parity Obligations of the Issuer and senior only to the Junior Obligations of the Issuer, and in the event of the liquidation or insolvency, or any other

39 39 Liquidation oder der Insolvenz der Emittentin oder eines anderen der Abwendung der Insolvenz dienenden Verfahrens gegen die Emittentin gehen die Verbindlichkeiten aus den Schuldverschreibungen allen anderen bestehenden und zukünftigen Verbindlichkeiten der Emittentin (mit Ausnahme der Gleichrangigen Verbindlichkeiten der Emittentin und der Nachrangigen Verbindlichkeiten der Emittentin), ob nachrangig oder nicht nachrangig, vollständig nach, soweit zwingende gesetzliche Vorschriften nichts anderes vorschreiben bzw. die Bedingungen des betreffenden Instruments nicht ausdrücklich etwas anderes vorsehen, so dass Zahlungen auf die Schuldverschreibungen solange nicht erfolgen, wie die Ansprüche, die nach diesem 3(1) den Schuldverschreibungen im Rang vorgehen, nicht vollständig befriedigt sind. Die Rechte der Gläubiger aus den Schuldverschreibungen gegenüber der Emittentin begründen direkte, (vorbehaltlich der Nachrangigen Garantie) nicht besicherte und nachrangige Rechte, die im Fall der Liquidation oder der Insolvenz der Emittentin oder eines anderen der Abwendung der Insolvenz der Emittentin dienenden Verfahrens untereinander und mit jeder Gleichrangigen Verbindlichkeit der Emittentin im Rang gleich stehen und nur den Nachrangigen Verbindlichkeiten der Emittentin im Rang vorgehen. Unter Beachtung dieser Nachrangregelung bleibt es der Emittentin unbenommen, ihre Verbindlichkeiten aus den Schuldverschreibungen auch aus dem sonstigen freien Vermögen zu bedienen. Den Gläubigern wird für ihre Rechte aus den Schuldverschreibungen mit Ausnahme der unbedingten Nachrangigen Garantie weder durch die Emittentin noch durch Dritte irgendeine Sicherheit oder Garantie gestellt; eine solche Sicherheit oder Garantie wird auch zu keinem späteren Zeitpunkt gestellt werden. "Gleichrangige Verbindlichkeiten" bezeichnet in Bezug auf eine Person alle bestehenden und zukünftigen Verbindlichkeiten (i) dieser Person, die gleichrangig im Verhältnis zu den Verbindlichkeiten dieser Person unter (im proceedings for the avoidance of insolvency, of, or against, the Issuer, the obligations under the Notes shall be fully subordinated to all other present and future obligations of the Issuer (except for Parity Obligations of the Issuer and Junior Obligations of the Issuer), whether subordinated or unsubordinated, except as otherwise provided by mandatory provisions of law or as expressly provided for by the terms of the relevant instrument so that in any such event no amounts shall be payable in respect of the Notes unless all claims that pursuant to this 3(1) rank senior to the Notes have been satisfied in full. The rights of the Holders towards the Issuer under the Notes constitute direct, (subject to the Subordinated Guarantee) unsecured and subordinated claims, in the event of the liquidation or insolvency of the Issuer or any other proceedings for the avoidance of insolvency of the Issuer ranking pari passu among themselves, pari passu with all claims in respect of the Parity Obligations of the Issuer and senior only to the claims against the Issuer in respect of the Junior Obligations of the Issuer. Subject to this subordination provision, the Issuer may satisfy its obligations under the Notes also from other available assets of the Issuer. Subject to the unconditional Subordinated Guarantee, no security or guarantee of whatever kind is, or shall at any time be, provided by the Issuer or any other person securing rights of the Holders under the Notes. "Parity Obligations" means, with respect to any Person, any present or future obligations which (i) are assumed by such Person and the obligations under which rank or are expressed to rank pari passu with the obligations of such Person

40 40 Falle der Emittentin) den Schuldverschreibungen oder (im Falle der Garantin) der Nachrangigen Garantie ist oder ausdrücklich als gleichrangig vereinbart sind oder (ii) die von einer Garantie oder Haftungsübernahme profitieren, bei der die Verbindlichkeiten dieser Person aus der betreffenden Garantie oder Haftungsübernahme mit den Verbindlichkeiten dieser Person aus (im Falle der Emittentin) den Schuldverschreibungen oder (im Falle der Garantin) der Nachrangigen Garantie als gleichrangig vereinbart sind. "Nachrangige Verbindlichkeiten" bezeichnet in Bezug auf eine Person (i) die Stammaktien und etwaige Vorzugsaktien dieser Person, (ii) jede gegenwärtige oder zukünftige Aktie einer anderen Gattung von Aktien dieser Person, (iii) jedes andere gegenwärtige oder zukünftige Wertpapier, Namenswertpapier oder jedes andere Instrument, das von dieser Person begeben ist und bei dem die daraus folgenden Verbindlichkeiten dieser Person mit den Stammaktien oder etwaigen Vorzugsaktien dieser Person gleichrangig vereinbart sind und (iv) jedes gegenwärtige oder zukünftige Wertpapier, Namenswertpapier oder jedes andere Instrument, das von einem Tochterunternehmen dieser Person begeben und von dieser Person dergestalt garantiert ist oder für das diese Person dergestalt die Haftung übernommen hat, dass die betreffenden Verbindlichkeiten dieser Person aus der maßgeblichen Garantie oder Haftungsübernahme mit den unter (i), (ii) und (iii) genannten Instrumenten gleichrangig oder als gleichrangig vereinbart sind. "Person" bezeichnet jede der folgenden Personen: natürliche Personen, Körperschaften, Personengesellschaften, Joint Ventures, Vereinigungen, Aktiengesellschaften, Trusts, nicht rechtsfähige Vereinigungen, Gesellschaften mit beschränkter Haftung, staatliche Stellen (oder Behörden oder Gebietskörperschaften) oder sonstige Rechtsträger. "Tochterunternehmen" bezeichnet (a) in Bezug auf die Emittentin jede Person, an der die Emittentin direkt oder indirekt insgesamt mehr als 50% des Kapitals oder der Stimmrechte hält, und (b) in Bezug auf die Garantin jedes direkte oder mittelbare, mehrheitlich der under (in case of the Issuer) the Notes or (in case of the Guarantor) the Subordinated Guarantee, or (ii) benefit from a guarantee or support agreement expressed to rank pari passu with its obligations under (in case of the Issuer) the Notes or (in case of the Guarantor) the Subordinated Guarantee. "Junior Obligations" means, with respect to any Person, (i) the ordinary shares and preferred shares (if any) of such Person, (ii) any present or future share of any other class of shares of such Person, (iii) any other present or future security, registered security or other instrument of such Person under which the obligations of such Person rank or are expressed to rank pari passu with the ordinary shares or the preferred shares (if any) of such Person and (iv) any present or future security, registered security or other instrument which is issued by a Subsidiary of such Person and guaranteed by such Person or for which such Person has otherwise assumed liability where the obligations of such Person under such guarantee or other assumptions of liability rank or are expressed to rank pari passu with any of the instruments described under (i), (ii) and (iii). "Person" means any individual, corporation, partnership, joint venture, association, joint stock company, trust, unincorporated organisation, limited liability company or government (or any agency or political subdivision thereof) or other entity. "Subsidiary" means (a) with respect to the Issuer, any Person in which the Issuer holds more than 50% of the capital or the voting shares, and (b) with respect to the Guarantor, any directly or indirectly majority-owned subsidiary of the Guarantor that must be consolidated by

41 41 Garantin gehörende Tochterunternehmen, das für die Zwecke der Erstellung des konsolidierten Jahresabschlusses der Garantin nach IFRS von der Garantin konsolidiert werden muss. (2) Nachrangige Garantie. Die VTG Aktiengesellschaft (die "Garantin") hat eine unbedingte und unwiderrufliche Garantie auf nachrangiger Basis (die "Nachrangige Garantie") für die ordnungsgemäße und pünktliche Zahlung aller Kapital-, Zins- und sonstigen auf die Schuldverschreibungen zahlbaren Beträge übernommen. Die Nachrangige Garantie stellt einen Vertrag zugunsten der Gläubiger als begünstigte Dritte im Sinne des 328 Abs. 1 BGB dar, der jedem Gläubiger das Recht gibt, die Garantin unmittelbar aus der Nachrangigen Garantie auf Erfüllung in Anspruch zu nehmen und Ansprüche aus der Nachrangigen Garantie unmittelbar gegen die Garantin durchzusetzen. Abschriften der Nachrangigen Garantie sind bei der bezeichneten Geschäftsstelle der Hauptzahlstelle kostenlos erhältlich. (3) Status der Nachrangigen Garantie. Die Nachrangige Garantie begründet direkte, nicht besicherte, nachrangige Verbindlichkeiten der Garantin, die untereinander und mit jeder Gleichrangigen Verbindlichkeit der Garantin gleichrangig sind und nur den Nachrangigen Verbindlichkeiten der Garantin im Rang vorgehen; im Fall der Liquidation oder der Insolvenz der Garantin oder eines anderen der Abwendung der Insolvenz dienenden Verfahrens gegen die Garantin gehen die Verbindlichkeiten aus der Nachrangigen Garantie allen anderen bestehenden und zukünftigen Verbindlichkeiten der Garantin (mit Ausnahme der Gleichrangigen Verbindlichkeiten der Garantin und der Nachrangigen Verbindlichkeiten der Garantin), ob nachrangig oder nicht nachrangig, vollständig nach, soweit zwingende gesetzliche Vorschriften nichts anderes vorschreiben bzw. die Bedingungen des betreffenden Instruments nicht ausdrücklich etwas anderes vorsehen, so dass Zahlungen auf die Nachrangige Garantie solange nicht erfolgen, wie die Ansprüche, die nach diesem 3(3) der Nachrangigen Garantie im Rang the Guarantor for the purposes of preparing annual consolidated financial statements of the Guarantor under IFRS. (2) Subordinated Guarantee. VTG Aktiengesellschaft (the "Guarantor") has given an unconditional and irrevocable guarantee on a subordinated basis (the "Subordinated Guarantee") for the due and punctual payment of principal of, and interest on, and any other amounts payable under the Notes. The Subordinated Guarantee constitutes a contract for the benefit of the Holders from time to time as third party beneficiaries in accordance with section 328 paragraph 1 of the German Civil Code (Bürgerliches Gesetzbuch), entitling each Holder to require performance of the Subordinated Guarantee directly from the Guarantor and to enforce the Subordinated Guarantee directly against the Guarantor. Copies of the Subordinated Guarantee may be obtained free of charge at the specified office of the Principal Paying Agent. (3) Status of the Subordinated Guarantee. The obligations of the Guarantor under the Subordinated Guarantee constitute direct, unsecured and subordinated obligations of the Guarantor, ranking pari passu among themselves, pari passu with all Parity Obligations of the Guarantor and senior only to the Junior Obligations of the Guarantor, and in the event of the liquidation or insolvency, or any other proceedings for the avoidance of insolvency, of, or against, the Guarantor, the obligations under the Subordinated Guarantee shall be fully subordinated to all other present and future obligations of the Guarantor (except for Parity Obligations of the Guarantor and Junior Obligations of the Guarantor), whether subordinated or unsubordinated, except as otherwise provided by mandatory provisions of law or as expressly provided for by the terms of the relevant instrument so that in any such event no amounts shall be payable in respect of the Subordinated Guarantee unless all claims that pursuant to this 3(3) rank senior to the Subordinated Guarantee have been satisfied in full.

42 42 vorgehen, nicht vollständig befriedigt sind. Die Rechte der Gläubiger aus der Nachrangigen Garantie gegenüber der Garantin begründen direkte, nicht besicherte und nachrangige Rechte im Sinne von 39 Absatz 2 InsO, die im Fall der Liquidation oder der Insolvenz der Garantin oder eines anderen der Abwendung der Insolvenz der Garantin dienenden Verfahrens untereinander und mit jeder Gleichrangigen Verbindlichkeit der Garantin im Rang gleich stehen und nur den Nachrangigen Verbindlichkeiten der Garantin im Rang vorgehen. Den Gläubigern wird für ihre Rechte aus der Nachrangigen Garantie weder durch die Garantin noch durch Dritte irgendeine Sicherheit oder Garantie gestellt; eine solche Sicherheit oder Garantie wird auch zu keinem späteren Zeitpunkt gestellt werden. (4) Aufrechnungsverbot. Die Gläubiger sind nicht berechtigt, Forderungen aus den Schuldverschreibungen oder der Nachrangigen Garantie gegen mögliche Forderungen der Emittentin aufzurechnen. Die Emittentin ist nicht berechtigt, Forderungen gegenüber Gläubigern gegen Verpflichtungen aus den Schuldverschreibungen aufzurechnen. Die Garantin ist nicht berechtigt, Forderungen gegenüber Gläubigern gegen Verpflichtungen aus der Nachrangigen Garantie aufzurechnen. The rights of the Holders towards the Guarantor under the Subordinated Guarantee constitute direct, unsecured and subordinated claims in the meaning of 39 paragraph 2 of the German Insolvency Code, in the event of the liquidation or insolvency of the Guarantor or any other proceedings for the avoidance of insolvency of the Guarantor ranking pari passu among themselves, pari passu with all claims in respect of the Parity Obligations of the Guarantor and senior only to the claims against the Issuer in respect of the Junior Obligations of the Guarantor. No security or guarantee of whatever kind is, or shall at any time be, provided by the Guarantor or any other person securing rights of the Holders under the Subordinated Guarantee. (4) Prohibition of set-off. No Holder may setoff any claims arising under the Notes or the Subordinated Guarantee against any claims that the Issuer may have against it. The Issuer may not set-off any claims it may have against any Holder against any of its obligations under the Notes. The Guarantor may not set-off any claims it may have against any Holder against any of its obligations under the Subordinated Guarantee. 4 Verzinsung 4 Interest (1) Zinszahlungstage. (1) Interest Payment Dates. (a) Vorbehaltlich des Aufschubs der Zinszahlung nach 5(1) werden (a) Subject to a deferral of interest pursuant to 5(1), the Notes shall die Schuldverschreibungen bear interest on their aggregate bezogen auf ihren principal amount from (and Gesamtnennbetrag ab dem 26. including) 26 January 2015 (the Januar 2015 (der "Interest Commencement Date") "Verzinsungsbeginn") to (but excluding) the first Interest (einschließlich) bis zum ersten Payment Date, and thereafter from Zinszahlungstag (ausschließlich) (and including) each Interest und danach von jedem Payment Date to (but excluding) Zinszahlungstag (einschließlich) the next following Interest Payment bis zum nächstfolgenden Date. Zinszahlungstag (ausschließlich) verzinst.

43 43 (b) Zinsen werden nachträglich am 26. Januar eines jeden Jahres (jeweils ein "Zinszahlungstag") bezahlt und werden nach Maßgabe von 5(1) fällig. Der erste Zinszahlungstag ist der 26. Januar (2) Zinssatz. Der Zinssatz (der "Zinssatz") für jede Zinsperiode ist, sofern nachstehend nichts Abweichendes bestimmt wird, (i) für den Zeitraum vom Verzinsungsbeginn (einschließlich) bis zum 26. Januar 2020 (der "Erste Rückzahlungstermin") (ausschließlich) ein fester Zinssatz in Höhe von 5,00% per annum, und (ii) für den Zeitraum ab dem Ersten Rückzahlungstermin (einschließlich) bis zum Kalendertag, an dem die Emittentin die Schuldverschreibungen vollständig zurückzahlt, der anwendbare Reset-Zinssatz für die relevante Zinsperiode. (b) Interest shall be scheduled to be paid annually in arrear on 26 January in each year (each such date, an "Interest Payment Date") and will fall due in accordance with 5(1). The first Interest Payment Date is 26 January (2) Rate of Interest. The rate of interest (the "Rate of Interest") for each Interest Period will, except as otherwise provided below, be (3) Bestimmte Definitionen. (3) Certain Definitions. "5-Jahres-Swapsatz-Angebotssätze" bezeichnet das arithmetische Mittel der Geld- und Briefkurse für die jährliche Festzinsseite (berechnet auf der Grundlage eines Jahres mit 360 Tagen und zwölf Monaten mit je 30 Tagen) einer Euro-Zinsswap-Transaktion fest gegen variabel (i) mit einer Laufzeit von 5 Jahren, die an dem betreffenden Referenzanpassungstermin beginnt, (ii) in einem Betrag, der für eine einzelne Transaktion in dem betreffenden Markt zum jeweiligen Zeitpunkt, die mit einem anerkannten Händler guter Bonität im Swap-Markt abgeschlossen wird, repräsentativ ist, und (iii) mit einer variablen Zinsseite, die auf dem 6- Monats-EURIBOR (berechnet auf der Grundlage der Anzahl der in einem Jahr mit 360 Tagen tatsächlich abgelaufenen Anzahl von Tagen) basiert. (i) (ii) for the period from (and including) the Interest Commencement Date to (but excluding) 26 January 2020 (the "First Call Date") a fixed rate of 5.00% per annum, and for the period from (and including) the First Call Date to (but excluding) the date on which the Issuer redeems the Notes in whole the applicable Reset Rate of Interest for the relevant Interest Period. "5 year Swap Rate Quotations" means the arithmetic mean of the bid and offered rates for the annual fixed leg (calculated on the basis of a 360-day year of twelve 30-day months) of a fixedfor-floating Euro interest rate swap transaction which (i) has a term of 5 years commencing on the relevant Reference Reset Date, (ii) is in an amount that is representative of a single transaction in the relevant market at the relevant time with an acknowledged dealer of good credit in the swap market and (iii) has a floating leg based on the 6- months EURIBOR rate (calculated on the basis of the actual number of days elapsed in a 360-day year). "Marge" bedeutet 7,709% per annum 1. "Margin" means 7.709% per annum 2. 1 Die Marge beinhaltet eine Erhöhung des Zinses von 3,00% per annum zuzüglich zu dem anfänglichen credit spread zum Ersten Rückzahlungstermin. 2 Margin to reflect an interest rate step-up of 3.00% per annum over the initial credit spread to the First Call Date.

44 44 "Reset-Referenzbanken" bedeutet fünf im Interbankenmarkt führende Swap Händler. "Reset-Referenzbankensatz" bezeichnet den jährlichen Prozentsatz, der auf Basis der von den Reset- Referenzbanken am Zinsfestlegungstag um etwa 11:00 Uhr Frankfurter Zeit an die Berechnungsstelle übermittelten 5- Jahres-Swapsatz-Angebotssätze bestimmt wird. Die Berechnungsstelle wird bei der Hauptniederlassung der Reset-Referenzbanken (die von der Berechnungsstelle nach Absprache mit der Emittentin ausgesucht werden) jeweils um einen Angebotssatz bitten. Falls zumindest drei Angebotssätze zur Verfügung gestellt werden, ist der Prozentsatz für den Zinsfestlegungstag das arithmetische Mittel (falls erforderlich, auf- oder abgerundet auf das nächste Tausendstel Prozent, wobei 0,0005 aufgerundet wird) der Angebotssätze, bereinigt um den höchsten Angebotssatz (oder, falls mehrere Angebotssätze gleich hoch sind, einer der höchsten) und den niedrigsten Angebotssatz (oder, falls mehrere Angebotssätze gleich niedrig sind, einen der niedrigsten). Kann der Reset- Referenzbankensatz nicht gemäß der vorhergehenden Bestimmungen dieses Absatzes bestimmt werden, ist der Reset-Referenzbankensatz der letzte Swap-Satz für Euro-Swap-Transaktionen mit einer Laufzeit von 5 Jahren, ausgedrückt auf jährlicher Basis, der auf der Reset-Bildschirmseite verfügbar ist. Der "Reset-Referenzsatz" für den jeweiligen Reset-Zeitraum wird von der Berechnungsstelle an dem Zinsfestlegungstag vor dem Reset- Termin, an dem der jeweilige Reset- Zeitraum beginnt, bestimmt (der "Referenzanpassungstermin") und ist der jährliche Swapsatz für Euro-Swap- Transaktionen mit einer Laufzeit von 5 Jahren beginnend mit dem Referenzanpassungstermin, ausgedrückt als Prozentsatz, der am jeweiligen Zinsfestlegungstag um 11:00 Uhr Frankfurter Zeit auf der Reuters- Bildschirmseite "ISDAFIX2" (oder einer Nachfolgeseite) (die "Reset- Bildschirmseite") unter der Überschrift "EURIBOR BASIS-EUR" und dem Untertitel "11:00 AM Frankfurt" (in der jeweiligen Fassung dieser Überschriften und Untertitel) angezeigt wird. "Reset Reference Banks" means five leading swap dealers in the interbank market. "Reset Reference Bank Rate" means the percentage rate, expressed as an annual rate, determined on the basis of the 5 year Swap Rate Quotations provided by the Reset Reference Banks to the Calculation Agent at approximately a.m. Frankfurt time on the Interest Determination Date. The Calculation Agent will request the principal office of each of the Reset Reference Banks (as selected by the Calculation Agent in consultation with the Issuer) to provide a quotation of its rate. If at least three quotations are provided, the rate for that Interest Determination Date will be the arithmetic mean (rounded if necessary to the nearest one thousandth of a percentage point, with being rounded upwards) of the quotations, eliminating the highest quotation (or, in the event of equality, one of the highest) and the lowest quotation (or, in the event of equality, one of the lowest). If the Reset Reference Bank Rate cannot be determined pursuant to the foregoing provisions of this paragraph, the Reset Reference Bank Rate will be equal to the last available 5 year swap rate for Euro swap transactions, expressed as an annual rate, on the Reset Screen Page. The "Reset Reference Rate" for the relevant Reset Period will be determined by the Calculation Agent on the Interest Determination Date prior to the relevant Reset Date on which the relevant Reset Period commences (the "Reference Reset Date") and will be the annual swap rate for Euro swap transactions with a term of 5 years commencing on the Reference Reset Date, expressed as a percentage, as displayed on the Reuters screen "ISDAFIX2" (or any successor page) (the "Reset Screen Page") under the heading "EURIBOR BASIS-EUR" and the caption "11:00 AM Frankfurt" (as such headings and captions may appear from time to time) as of 11:00 a.m. Frankfurt time on the relevant Interest Determination Date.

45 45 Für den Fall, dass der Reset- Referenzsatz am relevanten Zinsfestlegungstag nicht auf der Reset- Bildschirmseite erscheint, ist der Reset- Referenzsatz der Reset- Referenzbankensatz. "Reset-Termin" bezeichnet den Ersten Rückzahlungstermin und jeden fünften Jahrestag des Ersten Rückzahlungstermins. "Reset-Zeitraum" bezeichnet jeden Zeitraum ab dem Ersten Rückzahlungstermin (einschließlich) bis zum ersten Reset-Termin (ausschließlich) und nachfolgend ab jedem Reset-Termin (einschließlich) bis zu dem jeweils nächstfolgenden Reset-Termin (ausschließlich). "Reset-Zinssatz" bezeichnet den Reset- Referenzsatz für den jeweiligen Reset- Zeitraum, in den die jeweilige Zinsperiode fällt, zuzüglich der Marge. "TARGET-Geschäftstag" bezeichnet jeden Tag, an dem das Trans-European Automated Real-time Gross Settlement Express Transfer System 2 (TARGET2) geöffnet ist. "Zinsfestlegungstag" bezeichnet in Bezug auf den Reset-Referenzsatz, der für den Zeitraum von einem Reset- Termin (einschließlich) bis zum nächstfolgenden Reset-Termin (ausschließlich) festzustellen ist, den zweiten TARGET Geschäftstag vor dem Reset-Termin, an dem dieser Zeitraum beginnt. "Zinsperiode" bezeichnet den jeweiligen Zeitraum von dem Verzinsungsbeginn (einschließlich) bis zum ersten Zinszahlungstag (ausschließlich) bzw. von jedem Zinszahlungstag (einschließlich) bis zum jeweils darauffolgenden Zinszahlungstag (ausschließlich). (4) Verzinsung nach Eintritt eines Kontrollwechselereignisses. Wenn ein Kontrollwechselereignis eintritt und die Emittentin die Schuldverschreibungen nicht insgesamt gemäß 6(6) zurückzahlt, erhöht sich der für die Zinszahlung auf die Schuldverschreibungen sonst anwendbare Zinssatz ab dem Kontrollwechsel-Stichtag um 5,00% per annum. (5) Zinsbetrag. Unverzüglich nach Bestimmung des Reset-Referenzsatzes In the event that the Reset Reference Rate does not appear on the Reset Screen Page on the relevant Interest Determination Date, the Reset Reference Rate will be the Reset Reference Bank Rate. "Reset Date" means the First Call Date and each fifth anniversary of the First Call Date. "Reset Period" means each period from (and including) the First Call Date to (but excluding) the next following Reset Date and thereafter from (and including) each Reset Date to (but excluding) the next following Reset Date. "Reset Rate of Interest" means the Reset Reference Rate for the Reset Period in which the relevant Interest Period falls plus the Margin. "TARGET Business Day" means any day on which the Trans-European Automated Real-time Gross Settlement Express Transfer System 2 (TARGET2) is open. "Interest Determination Date" means, in respect of the Reset Reference Rate to be determined in relation to the period from (and including) a Reset Date to (but excluding) the next following Reset Date, the second TARGET Business Day preceding the Reset Date on which such period commences. "Interest Period" means each period from (and including) the Interest Commencement Date to (but excluding) the first Interest Payment Date and from (and including) each Interest Payment Date to (but excluding) the following Interest Payment Date. (4) Interest following the occurrence of a Change of Control Event. If a Change of Control Event occurs and the Issuer does not redeem the Notes in whole in accordance with 6(6), the applicable Rate of Interest will be increased by 5.00% per annum from the Change of Control Effective Date. (5) Interest Amount. The Calculation Agent will, without undue delay after the

46 46 wird die Berechnungsstelle den anwendbaren Zinssatz bestimmen und den vorbehaltlich 5(1) auf die Schuldverschreibungen zahlbaren Zinsbetrag in Bezug auf die Festgelegte Stückelung (der "Zinsbetrag") für die entsprechenden Zinsperioden bis zum nächsten Reset-Termin berechnen. Der Zinsbetrag wird ermittelt, indem der Zinssatz und der Zinstagequotient auf die Festgelegte Stückelung angewendet werden. Der resultierende Betrag wird auf die kleinste Einheit der Festgelegten Währung auf- oder abgerundet, wobei 0,5 solcher Einheiten aufgerundet werden. (6) Mitteilung von Zinssatz und Zinsbetrag. Die Berechnungsstelle wird veranlassen, dass der Zinssatz und der Zinsbetrag (unter dem Vorbehalt der Anwendung von 5(1)) für die jeweilige Zinsperiode (i) der Emittentin, der Garantin, der Zahlstelle und den Gläubigern gemäß 12 und (ii) jeder Börse, an der die betreffenden Schuldverschreibungen auf Veranlassung der Emittentin zu diesem Zeitpunkt notiert sind und deren Regeln eine Mitteilung an die Börse verlangen, in jedem Fall baldmöglichst, aber keinesfalls später als zu Beginn der Zinsperiode, für die der betreffende Zinssatz und der betreffende Zinsbetrag gelten, mitgeteilt werden. (7) Verbindlichkeit der Festsetzungen. Alle Bescheinigungen, Mitteilungen, Gutachten, Festsetzungen, Berechnungen, Quotierungen und Entscheidungen, die von der Berechnungsstelle für die Zwecke dieses 4 gemacht, abgegeben, getroffen oder eingeholt werden, sind (sofern nicht ein offensichtlicher Irrtum vorliegt) für die Emittentin, die Zahlstelle und die Gläubiger bindend. (8) Zinstagequotient. "Zinstagequotient" bezeichnet im Hinblick auf die Berechnung eines Zinsbetrages auf die Schuldverschreibungen für einen beliebigen Zeitraum (ab dem ersten Tag dieses Zeitraums (einschließlich) bis zum letzten Tag dieses Zeitraums (ausschließlich) (der "Zinsberechnungszeitraum"), determination of the Reset Reference Rate, determine the applicable Rate of Interest and calculate the amount of interest (the "Interest Amount"), subject to 5(1), payable on the Notes in respect of the Specified Denomination for the relevant Interest Periods until the next Reset Date. Each Interest Amount shall be calculated by applying the Rate of Interest and the Day Count Fraction to the Specified Denomination. The resulting figure will be rounded to the nearest unit of the Specified Currency, with 0.5 of such unit being rounded upwards. (6) Notification of Rate of Interest and Interest Amount. The Calculation Agent will cause the Rate of Interest and the Interest Amount (subject to the application of 5(1)) for the relevant Interest Period to be notified (i) to the Issuer, the Guarantor, the Paying Agent and to the Holders in accordance with 12 and (ii) if required by the rules of any stock exchange on which the Notes are listed from time to time at the request of the Issuer, to such stock exchange, in each case as soon as possible, but in no event later than the first day of the relevant Interest Period in relation to which the relevant Rate of Interest and the relevant Interest Amount apply. (7) Determinations Binding. All certificates, communications, opinions, determinations, calculations, quotations and decisions given, expressed, made or obtained for the purposes of the provisions of this 4 by the Calculation Agent shall (in the absence of manifest error) be binding on the Issuer, the Paying Agent and the Holders. (8) Day Count Fraction. "Day Count Fraction" means, in respect of the calculation of an amount of interest on the Notes for any period of time (from (and including) the first day of such period to (but excluding) the last day of such period) (the "Calculation Period"),

47 47 (i) wenn der Zinsberechnungszeitraum der Feststellungsperiode, in die er fällt, entspricht oder kürzer als diese ist, die Anzahl der Tage in dem Zinsberechnungszeitraum dividiert durch das Produkt aus (x) der Anzahl der Tage in dieser Feststellungsperiode und (y) der Anzahl von Feststellungsperioden, die normalerweise in einem Jahr enden würden; (ii) wenn der Zinsberechnungszeitraum länger als eine Feststellungsperiode ist, die Summe aus: (A) der Anzahl der Tage in diesem Zinsberechnungszeitraum, die in die Feststellungsperiode fallen, in der der Zinsberechnungszeitraum beginnt, dividiert durch das Produkt aus (x) der Anzahl der Tage in der diese Feststellungsperiode und (y) der Anzahl von Feststellungsperioden, die normalerweise in einem Jahr enden würden; und (B) der Anzahl der Tage in diesem Zinsberechnungszeitraum, die in die nachfolgende Feststellungsperiode fallen, dividiert durch das Produkt aus (x) der Anzahl der Tage in der diese Feststellungsperiode und (y) der Anzahl von Feststellungsperioden, die normalerweise in einem Jahr enden würden. "Feststellungstermin" bezeichnet jeden 26. Januar. "Feststellungsperiode" bezeichnet jeden Zeitraum ab einem Feststellungstermin (einschließlich), der in ein beliebiges Jahr fällt, bis zum nächsten Feststellungstermin (ausschließlich). (9) Zinslaufende. Die Verzinsung der Schuldverschreibungen endet mit Beginn des Tages, an dem ihr Kapitalbetrag zur Rückzahlung fällig wird (falls die Schuldverschreibungen zurückgezahlt werden). Sollte die Emittentin eine Zahlung von Kapital auf die Schuldverschreibungen bei Fälligkeit (i) (ii) if the Calculation Period is equal to or shorter than the Determination Period during which it falls, the number of days in the Calculation Period divided by the product of (x) the number of days in such Determination Period and (y) the number of Determination Periods normally ending in any year; and if the Calculation Period is longer than one Determination Period, the sum of: (A) (B) the number of days in such Calculation Period falling in the Determination Period in which the Calculation Period begins divided by the product of (x) the number of days in such Determination Period and (y) the number of Determination Periods normally ending in any year; and the number of days in such Calculation Period falling in the next Determination Period divided by the product of (x) the number of days in such Determination Period and (y) the number of Determination Periods normally ending in any year. "Determination Date" means each 26 January. "Determination Period" means each period from (and including) a Determination Date in any year to (but excluding) the next Determination Date. (9) Cessation of interest accrual. The Notes will cease to bear interest from the beginning of the day on which they become due for redemption (if the Notes are redeemed). If the Issuer fails to make the relevant redemption payment under the Notes when due, the Notes will bear interest on their outstanding Aggregate

48 48 nicht leisten, werden die Schuldverschreibungen bezogen auf ihren ausstehenden Gesamtnennbetrag vom Fälligkeitstag (einschließlich) bis zum Tag der tatsächlichen Rückzahlung der Schuldverschreibungen (ausschließlich) verzinst. Der in einem solchen Fall jeweils anzuwendende Zinssatz wird gemäß 4(1) bis (8) bestimmt. Principal Amount from (and including) the due date to (but excluding) the day of actual redemption of the Notes. In such case, the applicable rate of interest will be determined pursuant to 4(1) through (8). 5 Fälligkeit von Zinszahlungen; Aufschub von Zinszahlungen; Zahlung Aufgeschobener Zinszahlungen (1) Fälligkeit von Zinszahlungen; wahlweiser Zinsaufschub. (a) Zinsen, die während einer Zinsperiode auflaufen, werden an dem betreffenden Zinszahlungstag fällig, sofern sich die Emittentin nicht durch eine Bekanntmachung an die Gläubiger gemäß 12 innerhalb einer Frist von nicht weniger als 10 Geschäftstagen vor dem betreffenden Zinszahlungstag dazu entscheidet, die betreffende Zinszahlung (insgesamt, jedoch nicht teilweise) auszusetzen. Wenn sich die Emittentin an einem Zinszahlungstag zur Nichtzahlung aufgelaufener Zinsen entscheidet, dann ist sie nicht verpflichtet, an dem betreffenden Zinszahlungstag Zinsen zu zahlen. Eine Nichtzahlung von Zinsen aus diesem Grunde begründet keinen Verzug der Emittentin und keine anderweitige Verletzung ihrer Verpflichtungen aufgrund der Schuldverschreibungen oder für sonstige Zwecke. Nach Maßgabe dieses 5(1)(a) nicht fällig gewordene Zinsen sind aufgeschobene Zinszahlungen ("Aufgeschobene Zinszahlungen"). "Geschäftstag" bezeichnet jeden Tag (außer einem Samstag oder Sonntag), an dem das Clearing System sowie alle maßgeblichen Stellen des Trans-European Automated Real-time Gross Settlement Express Transfer System 2 (TARGET2) geöffnet sind, um Zahlungen abzuwickeln. 5 Due Date for interest payments; Deferral of Interest Payments; Payment of Arrears of Interest (1) Due Date for interest payments; optional interest deferral. (a) Interest which accrues during an Interest Period will be due and payable (fällig) on the relevant Interest Payment Date, unless the Issuer elects, by giving notice to the Holders not less than 10 Business Days prior to the relevant Interest Payment Date in accordance with 12, to defer the relevant payment of interest (in whole but not in part). If the Issuer elects not to pay accrued interest on an Interest Payment Date, then it will not have any obligation to pay such interest on such Interest Payment Date. Any such non-payment of interest will not constitute a default of the Issuer or any other breach of its obligations under the Notes or for any other purpose. Interest not due and payable in accordance with this 5(1)(a) will constitute arrears of interest ("Arrears of Interest"). "Business Day" means a day (other than Saturday or Sunday) on which the Clearing System as well as all relevant parts of the Trans- European Automated Real-time Gross Settlement Express Transfer System 2 (TARGET2) are open to effect payments.

49 49 (b) Aufgeschobene Zinszahlungen werden nicht verzinst. (2) Freiwillige Zahlung von Aufgeschobenen Zinszahlungen. Die Emittentin ist berechtigt, ausstehende Aufgeschobene Zinszahlungen jederzeit insgesamt, jedoch nicht teilweise nach Bekanntmachung an die Gläubiger unter Einhaltung einer Frist von nicht weniger als 10 Geschäftstagen vor einer freiwilligen Zinszahlung, wobei eine solche Bekanntmachung (i) den Betrag an Aufgeschobenen Zinszahlungen, der gezahlt werden soll, und (ii) den für diese Zahlung festgelegten Termin enthalten muss. (3) Pflicht zur Zahlung von Aufgeschobenen Zinszahlungen. Die Emittentin ist verpflichtet, Aufgeschobene Zinszahlungen insgesamt und nicht nur teilweise am ersten der folgenden Kalendertage zu zahlen (jeweils ein "Pflichtnachzahlungstermin"): (i) am zehnten Geschäftstag nach Eintreten eines Pflichtnachzahlungsereignisses; oder (ii) am Kalendertag, an dem die Schuldverschreibungen gemäß 6(2), 6(4), 6(5) oder 6(6) zurückgezahlt werden; oder (iii) am Kalendertag, an dem die betreffende Hauptversammlung die freiwillige Auflösung der Emittentin oder der Garantin beschließt oder an dem ein Beschluss zur Auflösung, Abwicklung oder Liquidation der Emittentin oder der Garantin ergangen ist (in jedem Fall aber nur, wenn dies nicht für die Zwecke oder als Folge einer Sanierung oder eines Insolvenzplanverfahrens oder eines Zusammenschlusses oder einer Umstrukturierung geschieht und die Emittentin bzw. die Garantin noch zahlungsfähig ist und die übernehmende Gesellschaft im Wesentlichen alle Vermögenswerte und Verpflichtungen der Emittentin bzw. der Garantin übernimmt). Ein "Pflichtnachzahlungsereignis" liegt bei Eintreten eines jeden der folgenden Ereignisse vor: (b) Arrears of Interest will not bear interest. (2) Optional Settlement of Arrears of Interest. The Issuer may pay outstanding Arrears of Interest (in whole but not in part) at any time by giving notice to the Holders not less than 10 Business Days prior to such voluntary payment and specifying (i) the amount of Arrears of Interest to be paid and (ii) the date fixed for such payment. (3) Mandatory Payment of Arrears of Interest. The Issuer must pay outstanding Arrears of Interest (in whole but not in part) on the earliest of the following dates (each a "Mandatory Settlement Date"): (i) (ii) (iii) the tenth Business Day following the occurrence of a Mandatory Payment Event; or the date on which the Notes are redeemed in accordance with 6(2), 6(4), 6(5) or 6(6); or the date on which the relevant general meeting of shareholders resolves the voluntary winding-up of the Issuer or the Guarantor or an order is made for the windingup, dissolution or liquidation of the Issuer or the Guarantor (in each case other than for the purposes of or pursuant to the restructuring or an insolvency plan procedure (Insolvenzplanverfahren) or an amalgamation or reorganisation while solvent, where the continuing entity assumes substantially all of the assets and obligations of the Issuer or the Guarantor (as applicable)). A "Mandatory Payment Event" will occur upon any of the following events:

50 50 (i) der Kalendertag, an dem eine Dividende, andere Ausschüttung oder andere Zahlung auf die Nachrangigen Verbindlichkeiten der Emittentin oder der Garantin oder die Gleichrangigen Verbindlichkeiten der Emittentin oder der Garantin gezahlt oder anderweitig gemacht wurde (mit Ausnahme einer Dividende, Ausschüttung oder Zahlung, die (1) allein in Form von Stammaktien der Emittentin oder der Garantin an die Gesellschafter der Emittentin bzw. der Garantin vorgenommen wird oder (2) von der Emittentin ausschließlich an die Garantin geleistet werden); (ii) der Kalendertag, an dem die Emittentin, die Garantin, ein Tochterunternehmen der Emittentin oder ein Tochterunternehmen der Garantin Nachrangige Verbindlichkeiten der Emittentin oder der Garantin oder Gleichrangige Verbindlichkeiten der Emittentin oder der Garantin vor deren jeweiligem Fälligkeitstag - wie in den Bedingungen dieser Nachrangigen Verbindlichkeiten der Emittentin oder der Garantin oder Gleichrangigen Verbindlichkeiten der Emittentin oder der Garantin zum Zeitpunkt ihrer Begebung bzw. Übernahme bestimmt - zurückgekauft, zurückgezahlt oder anderweitig erworben hat, ausgenommen (x) in Verbindung mit einem Mitarbeiterbeteiligungsprogramm oder einer ähnlichen Maßnahme zu Gunsten von Arbeitnehmern, leitenden Angestellten oder Führungskräften, (y) als Ergebnis eines Umtauschs oder einer Wandlung einer Gattung der Nachrangigen Verbindlichkeiten der Emittentin oder der Garantin in eine andere Gattung Nachrangiger Verbindlichkeiten der Emittentin oder der Garantin oder eines Umtauschs oder einer Wandlung einer Gattung der Gleichrangigen Verbindlichkeiten der Emittentin oder der Garantin in eine andere Gattung Gleichrangiger Verbindlichkeiten der Emittentin der Garantin oder Nachrangiger Verbindlichkeiten der Emittentin oder der Garantin oder (z) falls die (i) (ii) the calendar day on which a dividend, other distribution or other payment was paid or otherwise made in respect of Junior Obligations of the Issuer or the Guarantor or Parity Obligations of the Issuer or the Guarantor, in each case, however, other than a dividend, distribution or payment which (1) is made solely in the form of ordinary shares of the Issuer or of the Guarantor to the shareholders of the Issuer or the Guarantor (as applicable) or (2) is made by the Issuer exclusively to the Guarantor; the calendar day on which the Issuer, the Guarantor or a Subsidiary of the Issuer or the Guarantor has redeemed, repurchased or otherwise acquired Junior Obligations of the Issuer or the Guarantor or Parity Obligations of the Issuer or the Guarantor prior to the respective maturity date as stipulated under the terms and conditions of such Junior Obligations of the Issuer or the Guarantor or Parity Obligations of the Issuer or the Guarantor at the time of their issuance or assumption (as applicable), in each case, however, other than (x) in connection with any employee benefit plan or similar arrangements with or for the benefit of employees, officers or directors, (y) as a result of the exchange or conversion of one class of Junior Obligations of the Issuer or the Guarantor for another class of Junior Obligations of the Issuer or the Guarantor or the exchange or conversion of one class of Parity Obligations of the Issuer or the Guarantor for another class of Parity Obligations of the Issuer or the Guarantor or Junior Obligations of the Issuer or the Guarantor, or (z) in the case the Issuer or the relevant Subsidiary receives Junior Obligations of the Issuer or the Guarantor or Parity Obligations of the Issuer or the Guarantor as consideration for a sale of assets to third parties;

51 51 Emittentin oder das betreffende Tochterunternehmen Nachrangige Verbindlichkeiten der Emittentin oder der Garantin oder Gleichrangige Verbindlichkeiten der Emittentin oder der Garantin als Gegenleistung für einen Verkauf von Vermögenswerten an Dritte erhält; (iii) der nächste Zinszahlungstag, bezüglich dessen die Emittentin von ihrem Wahlrecht, die Zahlung von Zinsen vorzunehmen, die an diesem Zinszahlungstag auf die Schuldverschreibungen zu zahlen sind, Gebrauch macht; mit der Maßgabe, dass (x) in den vorgenannten Fällen (i) und (ii) kein Pflichtnachzahlungsereignis vorliegt, wenn die Emittentin, die Garantin oder das betreffende Tochterunternehmen nach Maßgabe der Bedingungen der betreffenden Nachrangigen Verbindlichkeit der Emittentin oder der Garantin oder Gleichrangigen Verbindlichkeit der Emittentin oder der Garantin oder kraft zwingenden Rechts zu der Zahlung, der Rückzahlung, dem Rückkauf oder dem anderweitigen Erwerb verpflichtet ist; und (y) im vorgenannten Fall (ii) kein Pflichtnachzahlungsereignis vorliegt, wenn die Emittentin, die Garantin oder das betreffende Tochterunternehmen Gleichrangige Verbindlichkeiten der Emittentin oder der Garantin nach einem öffentlichen Rückkaufangebot oder öffentlichen Umtauschangebot ganz oder teilweise zu einem unter dem Nennwert je Gleichrangiger Verbindlichkeit der Emittentin bzw. der Garantin liegenden Kaufpreis zurückkauft oder anderweitig erwirbt. (iii) the next Interest Payment Date in relation to which the Issuer elects to pay interest on the Notes scheduled to be paid on such Interest Payment Date; provided that (x) in the cases (i) and (ii) above, no Mandatory Payment Event will occur if the Issuer, the Guarantor or the relevant Subsidiary is obliged under the terms and conditions of such Junior Obligations of the Issuer or the Guarantor or Parity Obligations of the Issuer or the Guarantor or by mandatory operation of law to make such payment, such redemption, such repurchase or such other acquisition; and (y) in the case (ii) above, no Mandatory Payment Event will occur if the Issuer, the Guarantor or the relevant Subsidiary repurchases or otherwise acquires any Parity Obligations of the Issuer or the Guarantor in whole or in part in a public tender offer or public exchange offer at a consideration per Parity Obligation of the Issuer or the Guarantor (as applicable) below its par value. 6 Rückzahlung und Rückkauf (1) Keine Endfälligkeit. Die Schuldverschreibungen haben keinen Endfälligkeitstag und werden außer nach Maßgabe dieses 6 nicht zurückgezahlt. (2) Kündigungsrecht und Rückzahlung nach Wahl der Emittentin am Ersten 6 Redemption and Repurchase (1) No final maturity. The Notes have no final maturity date and shall not be redeemed except in accordance with the provisions set out in this 6. (2) Issuer Call Right and Redemption at the Option of the Issuer on the First Call Date

52 52 Rückzahlungstermin oder an jedem danach folgenden Zinszahlungstag. Die Emittentin ist berechtigt, durch Bekanntmachung gemäß 12 unter Einhaltung einer Frist von nicht weniger als 30 und nicht mehr als 60 Tagen, die Schuldverschreibungen (insgesamt und nicht nur teilweise) erstmals mit Wirkung zum Ersten Rückzahlungstermin oder danach mit Wirkung zu jedem nachfolgenden Zinszahlungstag zu kündigen. Im Falle einer solchen Kündigung hat die Emittentin die Schuldverschreibungen am in der Bekanntmachung festgelegten Rückzahlungstermin zu einem Betrag je Schuldverschreibung in Höhe der Festgelegten Stückelung zuzüglich der bis zu diesem Rückzahlungstermin (ausschließlich) in Bezug auf die Schuldverschreibung aufgelaufenen, aber noch nicht bezahlten Zinsen sowie sämtlicher gemäß 5(3) fälligen Aufgeschobenen Zinszahlungen zurückzuzahlen. (3) Rückkauf von Schuldverschreibungen. Die Emittentin oder Tochterunternehmen können unter Einhaltung der einschlägigen gesetzlichen Vorschriften jederzeit Schuldverschreibungen im Markt oder anderweitig zu jedem beliebigen Preis kaufen. Derartig erworbene Schuldverschreibungen können entwertet, gehalten oder wieder veräußert werden. (4) Kündigungsrecht und Rückzahlung bei einem Quellensteuer-Ereignis, einem Rechnungslegungsereignis oder einem Steuerereignis. Bei Eintritt eines Quellensteuer- Ereignisses, eines Rechnungslegungsereignisses oder eines Steuerereignisses ist die Emittentin berechtigt, die Schuldverschreibungen jederzeit (insgesamt, jedoch nicht teilweise) durch Bekanntmachung gemäß 12 unter Einhaltung einer Frist von mindestens 30 und höchstens 60 Tagen zu kündigen. Im Falle einer solchen Kündigung hat die Emittentin die Schuldverschreibungen am in der Bekanntmachung festgelegten Rückzahlungstermin wie folgt zurückzuzahlen: (i) wenn die Kündigung aufgrund eines Quellensteuer-Ereignisses erfolgt, hat die Emittentin die Schuldverschreibungen am festgelegten Rückzahlungstermin or on any Interest Payment Date thereafter. The Issuer may call and redeem the Notes (in whole but not in part) on the First Call Date or on any Interest Payment Date thereafter upon giving not less than 30 and not more than 60 days' notice in accordance with 12. In the case such call notice is given, the Issuer shall redeem the Notes at an amount per Note equal to the Specified Denomination, plus any interest accrued on the Note to (but excluding) the Redemption Date (as specified in the notice) but yet unpaid and any Arrears of Interest payable pursuant to 5(3) on such Redemption Date. (3) Repurchase of Notes. The Issuer or any Subsidiary may, subject to applicable laws, at any time purchase Notes in the open market or otherwise and at any price. Such acquired Notes may be cancelled, held or resold. (4) Issuer Call Right and Redemption due to a Gross-up Event, an Accounting Event or a Tax Event. If either a Gross-up Event, an Accounting Event or a Tax Event shall have occurred, the Issuer may call the Notes for redemption (in whole but not in part) at any time upon giving of not less than 30 and not more than 60 days' notice in accordance with 12. In this case the Issuer shall redeem the Notes on the Redemption Date specified in the notice as follows: (i) if the Notes are called by the Issuer upon the occurrence of a Gross-up Event, the Notes will be redeemed at an amount per Note equal to the Specified

53 53 zu einem Betrag je Schuldverschreibung in Höhe der Festgelegten Stückelung zuzüglich der bis zum Rückzahlungstermin (ausschließlich) in Bezug auf die Schuldverschreibung aufgelaufenen, aber noch nicht bezahlten Zinsen sowie sämtlicher gemäß 5(3) fälligen Aufgeschobenen Zinszahlungen zurückzuzahlen; oder (ii) wenn die Kündigung aufgrund eines Rechnungslegungsereignisses oder eines Steuerereignisses erfolgt, hat die Emittentin die Schuldverschreibungen am festgelegten Rückzahlungstermin (x) zu einem Betrag je Schuldverschreibung in Höhe von 101% der Festgelegten Stückelung zuzüglich der bis zum Rückzahlungstermin (ausschließlich) in Bezug auf die Schuldverschreibung aufgelaufenen, aber noch nicht bezahlten Zinsen sowie sämtlicher gemäß 5(3) fälligen Aufgeschobenen Zinszahlungen zurückzuzahlen, sofern die Rückzahlung vor dem Ersten Rückzahlungstermin erfolgt, oder (y) zu einem Betrag je Schuldverschreibung in Höhe der Festgelegten Stückelung zuzüglich der bis zum Rückzahlungstermin (ausschließlich) in Bezug auf die Schuldverschreibung aufgelaufenen, aber noch nicht bezahlten Zinsen sowie sämtlicher gemäß 5(3) fälligen Aufgeschobenen Zinszahlungen zurückzuzahlen, sofern die Rückzahlung am oder nach dem Ersten Rückzahlungstermin erfolgt. Die Bekanntmachung der Kündigung muss diejenigen Tatsachen enthalten, auf welche die Emittentin ihr Kündigungsrecht stützt, und den für die Rückzahlung bestimmten Rückzahlungstermin angeben. Ein "Quellensteuer-Ereignis" liegt vor, falls die Emittentin oder die Garantin verpflichtet ist oder verpflichtet sein wird, Zusätzliche Beträge (einschließlich, jedoch nicht ausschließlich, Zusätzliche Beträge unter der Nachrangigen Garantie (wie dort definiert)) als Folge einer Änderung oder Ergänzung von Gesetzen oder Vorschriften des Großherzogtums Luxemburg oder der Bundesrepublik (ii) Denomination, plus any interest accrued on the Note to (but excluding) the Redemption Date but yet unpaid and any Arrears of Interest payable pursuant to 5(3) on the specified Redemption Date; or if the Notes are called upon the occurrence of an Accounting Event or a Tax Event the Notes will be redeemed (x) at an amount per Note equal to 101% of the Specified Denomination, plus any interest accrued on the Note to (but excluding) the Redemption Date but yet unpaid and any Arrears of Interest payable pursuant to 5(3) on the specified Redemption Date if such redemption occurs prior to the First Call Date, or (y) at an amount per Note equal to the Specified Denomination, plus any interest accrued on the Note to (but excluding) the Redemption Date but yet unpaid and any Arrears of Interest payable pursuant to 5(3) on the specified Redemption Date if such redemption occurs on or after the First Call Date. The notice shall also set forth the underlying facts of the Issuer's right to redemption and specify the Redemption Date fixed for redemption. A "Gross-up Event" shall have occurred if the Issuer or the Guarantor has or will become obliged to pay Additional Amounts (including, without limitation, Additional Amounts under the Subordinated Guarantee (as defined therein)) as a result of any change in, or amendment to, the laws or regulations of the Grand Duchy of Luxembourg or the Federal Republic of Germany or any

54 54 Deutschland oder einer seiner/ihrer jeweiligen Gebietskörperschaften oder Steuerbehörden oder als Folge einer Änderung oder Ergänzung der offiziellen Auslegung oder Anwendung dieser Gesetze oder Vorschriften durch eine gesetzgebende Körperschaft, ein Gericht, eine Steuerbehörde, eine Aufsichtsbehörde oder eine sonstige Behörde (einschließlich des Erlasses von Gesetzen sowie der Bekanntmachung gerichtlicher oder aufsichtsrechtlicher Entscheidungen) zu zahlen, allerdings nur soweit die betreffende Änderung, Ergänzung oder Durchführung an oder nach dem Ausgabetag wirksam wird und die Emittentin oder die Garantin die Zahlungsverpflichtung nicht durch das Ergreifen von Maßnahmen vermeiden kann, die sie nach Treu und Glauben für angemessen hält. Ein "Rechnungslegungsereignis" liegt vor, wenn eine anerkannte Wirtschaftsprüfungsgesellschaft, die im Auftrag der Emittentin oder der Garantin handelt, der Emittentin oder der Garantin einen Brief oder eine Bericht übermittelt, wonach aufgrund einer Änderung der Rechnungslegungsgrundsätze (oder deren Anwendung) seit dem Ausgabetag die durch die Ausgabe der Schuldverschreibungen beschafften Gelder nicht oder nicht mehr als "Eigenkapital" gemäß IFRS bzw. anderen Rechnungslegungsstandards, die die Garantin für die Erstellung ihres konsolidierten Jahresabschlusses anstelle der IFRS anwenden kann, ausgewiesen werden dürfen. Ein "Steuerereignis" liegt vor, wenn (x) der Emittentin oder der Garantin ein Gutachten eines anerkannten unabhängigen Steuerberaters übergeben worden ist, aus dem hervorgeht, dass an oder nach dem Ausgabetag als Folge (i) einer Änderung oder Ergänzung der Gesetze (oder von aufgrund dieser Gesetze erlassenen Bestimmungen oder Vorschriften) des Großherzogtums Luxemburg, der Bundesrepublik Deutschland oder einer seiner/ihrer jeweiligen Gebietskörperschaften oder Steuerbehörden, die an oder political subdivision or taxing authority of any or in any of the foregoing, or as a result of any amendment to, or any change in, any official interpretation or application of any such laws of regulations by any legislative body, court, or taxing authority, governmental agency or regulatory authority (including the enactment of any legislation and the publication of any judicial decision or regulatory determination), provided that the relevant amendment, change or execution becomes effective on or after the Issue Date and provided further that the payment obligation cannot be avoided by the Issuer or the Guarantor taking such reasonable measures it (acting in good faith) deems appropriate. An "Accounting Event" shall have occurred if a recognized accountancy firm, acting upon instructions of the Issuer or the Guarantor, has delivered a letter or report to the Issuer or the Guarantor, stating that as a result of a change in accounting principles (or the application thereof) since the Issue Date the funds raised through the issuance of the Notes may not or may no longer be recorded as "equity" pursuant to IFRS or any other accounting standards that may replace IFRS for the purposes of the annual consolidated financial statements of the Guarantor. A "Tax Event" shall have occurred if (x) an opinion of a recognized independent tax counsel has been delivered to the Issuer or the Guarantor, stating that on or after the Issue Date, as a result of (i) any amendment to, or change in, the laws (or any rules or regulations thereunder) of the Grand Duchy of Luxembourg, the Federal Republic of Germany or any political subdivision or any taxing authority of any or in any of the foregoing which is enacted, promulgated, issued or becomes effective

55 55 nach dem Ausgabetag erlassen, verkündet oder anderweitig wirksam wird, otherwise on or after the Issue Date; (ii) einer Änderung oder Ergänzung der bindenden offiziellen Auslegung solcher Gesetze, Bestimmungen oder Vorschriften durch eine gesetzgebende Körperschaft, ein Gericht, eine Regierungsstelle oder eine Aufsichtsbehörde (einschließlich des Erlasses von Gesetzen sowie der Bekanntmachung gerichtlicher oder aufsichtsrechtlicher Entscheidungen), die an oder nach dem Ausgabetag erlassen, verkündet oder anderweitig wirksam wird, oder (ii) any amendment to, or change in, an official and binding interpretation of any such laws, rules or regulations by any legislative body, court, governmental agency or regulatory authority (including the enactment of any legislation and the publication of any judicial decision or regulatory determination) which is enacted, promulgated, issued or becomes effective otherwise on or after the Issue Date; or (iii) einer allgemein anwendbaren offiziellen Auslegung oder Verkündung, die an oder nach dem Ausgabetag erlassen oder verkündet wird und nach der die Rechtslage im Hinblick auf diese Gesetze oder Vorschriften von der früheren allgemein anerkannten Rechtslage abweicht, (iii) any generally applicable official interpretation or pronouncement that provides for a position with respect to such laws or regulations that differs from the previous generally accepted position which is issued or announced on or after the Issue Date; Zahlungen, die von der Emittentin oder der Garantin in Bezug auf die Schuldverschreibungen (einschließlich, jedoch nicht ausschließlich, unter der Nachrangigen Garantie) zu leisten sind, von der Emittentin oder der Garantin nicht mehr für die Zwecke der Körperschaftssteuer voll abzugsfähig sind, bzw. innerhalb von 90 Tagen nach dem Datum dieses Gutachtens nicht mehr voll abzugsfähig sein werden; und payments by the Issuer or the Guarantor on the Notes (including, without limitation, under the Subordinated Guarantee) are no longer, or within 90 days of the date of that opinion will no longer be, fully deductible by the Issuer or the Guarantor for corporate income tax purposes; and (y) die Emittentin oder die Garantin dieses Risiko nicht durch das Ergreifen zumutbarer Maßnahmen vermeiden kann. (y) such risk cannot be avoided by the Issuer or the Guarantor taking reasonable measures available to it.

56 56 (5) Kündigungsrecht der Emittentin bei geringem ausstehenden Gesamtnennbetrag. Falls die Emittentin, die Garantin und/oder ein Tochterunternehmen der Emittentin oder der Garantin allein oder gemeinsam Schuldverschreibungen im Volumen von 80% oder mehr des ursprünglich begebenen Gesamtnennbetrages der Schuldverschreibungen erworben hat, kann die Emittentin die verbleibenden Schuldverschreibungen jederzeit (insgesamt, jedoch nicht teilweise) durch Bekanntmachung gemäß 12 unter Einhaltung einer Frist von nicht weniger als 30 und nicht mehr als 60 Tagen kündigen und am festgelegten Rückzahlungstermin (i) zu einem Betrag je Schuldverschreibung in Höhe von 101% der Festgelegten Stückelung zuzüglich der bis zum Rückzahlungstermin (ausschließlich) in Bezug auf die Schuldverschreibung aufgelaufenen, aber noch nicht bezahlten Zinsen sowie sämtlicher gemäß 5(3) fälligen Aufgeschobenen Zinszahlungen zurückzahlen, sofern die Rückzahlung vor dem Ersten Rückzahlungstermin erfolgt, oder (ii) zu einem Betrag je Schuldverschreibung in Höhe der Festgelegten Stückelung zuzüglich der bis zum Rückzahlungstermin (ausschließlich) in Bezug auf die Schuldverschreibung aufgelaufenen, aber noch nicht bezahlten Zinsen sowie sämtlicher gemäß 5(3) fälligen Aufgeschobenen Zinszahlungen zurückzahlen, sofern die Rückzahlung am oder nach dem Ersten Rückzahlungstermin erfolgt. (6) Kündigungsrecht und Rückzahlung bei einem Kontrollwechselereignis. Bei Eintritt eines Kontrollwechselereignisses (i) hat die Emittentin unverzüglich den Kontrollwechsel-Stichtag zu bestimmen und das Kontrollwechselereignis und den Kontrollwechsel-Stichtag gemäß 12 anzuzeigen (die "Kontrollwechselmitteilung") und (ii) ist die Emittentin berechtigt, die Schuldverschreibungen jederzeit (insgesamt, jedoch nicht teilweise) mit Wirkung zum Kontrollwechsel-Stichtag durch Bekanntmachung gemäß 12 unter Einhaltung einer Frist von nicht mehr als 45 Tagen nach Bekanntmachung der Kontrollwechselmitteilung zu kündigen. Im Falle einer solchen Kündigung hat die Emittentin die Schuldverschreibungen am Kontrollwechsel-Stichtag zu einem (5) Issuer Call Right in the case of Minimal Outstanding Aggregate Principal Amount. In the event that the Issuer, the Guarantor and/or any Subsidiary of the Issuer or the Guarantor has, severally or jointly, purchased Notes equal to or in excess of 80% of the Aggregate Principal Amount of the Notes initially issued, the Issuer may call and redeem the remaining Notes (in whole but not in part) at any time upon giving not less than 30 and not more than 60 days' notice in accordance with 12 (i) at an amount per Note equal to 101% of the Specified Denomination, plus any interest accrued on the Note to (but excluding) the Redemption Date but yet unpaid and any Arrears of Interest payable pursuant to 5(3) on the specified Redemption Date if such redemption occurs prior to the First Call Date, or (ii) at an amount per Note equal to the Specified Denomination, plus any interest accrued on the Note to (but excluding) the Redemption Date but yet unpaid and any Arrears of Interest payable pursuant to 5(3) on the specified Redemption Date if such redemption occurs on or after the First Call Date. (6) Issuer Call Right and Redemption due to a Change of Control Event. If a Change of Control Event shall have occurred, (i) the Issuer will specify the Change of Control Effective Date and give notice in accordance with 12 of the occurrence Change of Control Event and the Change of Control Effective Date without undue delay (the "Change of Control Notice"), and (ii) the Issuer may call the Notes for redemption (in whole but not in part) at any time with effect as of the Change of Control Effective Date upon giving of not more than 45 days' notice after publication of the Change of Control Notice in accordance with 12. In the case such call notice is given, the Issuer shall redeem the Notes on the Change of Control Effective Date at an amount per Note equal to the Specified

57 57 Betrag je Schuldverschreibung in Höhe der Festgelegten Stückelung zuzüglich der bis zum Kontrollwechsel-Stichtag (ausschließlich) in Bezug auf die Schuldverschreibung aufgelaufenen, aber noch nicht bezahlten Zinsen sowie sämtlicher gemäß 5(3) fälligen Aufgeschobenen Zinszahlungen zurückzuzahlen. "Außenstehende Person" bezeichnet jede Person mit Ausnahme von (i) W.L. Ross und (ii) den mit ihm Verbundenen Unternehmen. Ein "Kontrollwechselereignis" gilt als eingetreten, wenn nach dem Ausgabetag sowohl ein Wechsel der Beteiligungsverhältnisse als auch ein Negatives Ratingereignis eintreten. "Kontrollwechsel-Stichtag" bezeichnet den von der Emittentin in der Kontrollwechselmitteilung festgelegten Tag, der: Denomination, plus any interest accrued on the Note to (but excluding) the Change of Control Effective Date but yet unpaid and any Arrears of Interest payable pursuant to 5(3) on the Change of Control Effective Date. "Third Party Person" means any Person except for (i) W.L. Ross and (ii) his Affiliates. A "Change of Control Event" shall be deemed to have occurred in the event that, after the Issue Date, both a Change of Ownership and a Negative Rating Event occur. "Change of Control Effective Date" means the date specified by the Issuer in the Change of Control Notice, which: (i) ein Geschäftstag sein muss; und (i) must be a Business Day; and (ii) nicht weniger als 45 und nicht (ii) must fall not less than 45 and not mehr als 60 Tage nach more than 60 days after Bekanntmachung der publication of the Change of Kontrollwechselmitteilung liegen Control Notice. darf. Ein "Negatives Ratingereignis" gilt im Hinblick auf einen Wechsel der Beteiligungsverhältnisse als eingetreten, wenn: (i) innerhalb von 180 Tagen nach Vollzug einer Relevanten Transaktion, die einen Wechsel der Beteiligungsverhältnisse bewirkt (die "180 Tage-Periode"), das durch eine Ratingagentur vergebene Langfristkreditrating (unabhängig davon, ob öffentlich oder privat) der Garantin (das "Rating") unter (im Fall von S&P und Fitch) "BBB-" oder (im Fall von Moody's) "Baa3" oder ein korrespondierendes Rating einer anderen Ratingagentur herabgestuft wird und infolge dieser Herabstufung das Rating der Garantin durch mindestens zwei Ratingagenturen am Ende der 180-Tage-Periode schlechter als (im Fall von S&P und Fitch) "BBB-", (im Fall von Moody's) "Baa3" oder das korrespondierende Rating einer anderen Ratingagentur ist; oder A "Negative Rating Event" shall be deemed to have occurred in respect of a Change of Ownership if: (i) during the 180-day period after the consummation of a Relevant Transaction that constitutes a Change of Ownership (the "180- day period") the long-term credit rating (regardless whether private or public) of the Guarantor (the "Rating") by a Rating Agency is reduced and such reduction results in the existence on the last day of the 180-day period of a Rating of the Guarantor by at least two Rating Agencies below (in the case of S&P and Fitch) "BBB-" or (in the case of Moody's) "Baa3" or such other equivalent rating as may be assigned by any other Rating Agency or

58 58 (ii) für den Fall, dass für die langfristigen Verbindlichkeiten der Garantin am Tag des Vollzugs einer Relevanten Transaktion kein Rating von einer Ratingagentur vergeben ist, es der Garantin nicht gelingt, während der 180-Tage- Periode ein Rating von mindestens "BBB-" durch S&P oder Fitch oder "Baa3" durch Moody's oder ein korrespondierendes Rating durch eine andere Ratingagentur zu erhalten. "Ratingagentur" bezeichnet jede der folgenden Ratingagenturen: Standard and Poor's Rating Services, eine Abteilung von The McGraw-Hill Companies, Inc. ("S&P"), Moody's Investor Services Limited ("Moody's") oder Fitch Ratings Ltd. ("Fitch") oder jede andere von der Garantin von Zeit zu Zeit bestimmte Ratingagentur vergleichbaren internationalen Ansehens, sowie jeweils ihre Tochter- und Nachfolgegesellschaften. "Verbundenes Unternehmen" bezeichnet zu dem betreffenden Zeitpunkt in Bezug auf eine Person jedes verbundene Unternehmen im Sinne der 15 bis 17 Aktiengesetz. Ein "Wechsel der Beteiligungsverhältnisse" gilt als eingetreten, wenn eine Außenstehende Person (oder eine Gruppe von gemeinsam handelnden Außenstehenden Personen) mehr als 50% der Stimmrechte der Garantin erwirbt (jeweils eine "Relevante Transaktion"). (ii) in case no Rating is assigned to the long-term obligations of the Guarantor by a Rating Agency at the date on which the Relevant Transaction is consummated, the Guarantor fails to establish a Rating of at least "BBB-" by S&P or Fitch or "Baa3" by Moody's or such other equivalent rating as may be assigned by any other Rating Agency during the 180-day period. "Rating Agency" means any of the following rating agencies: Standard and Poor's Rating Services, a division of The McGraw-Hill Companies, Inc. ("S&P"), Moody's Investor Services Limited ("Moody's") or Fitch Ratings Ltd. ("Fitch") or any other rating agency of equivalent international standing specified from time to time by the Guarantor, and in each case also their respective subsidiaries and successors. "Affiliate" means, at any time, and with respect to any Person, an affiliate within the meaning of sections 15 to 17 of the German Stock Corporation Act (Aktiengesetz). A "Change of Ownership" shall be deemed to occur if any Third Party Person (or a group of Third Party Persons acting in concert) acquires more than 50% of the voting shares of the Guarantor (a "Relevant Transaction"). 7 Zahlungen (1) Allgemein. (1) General. (a) (b) Zahlungen auf Kapital. Zahlungen auf Kapital in Bezug auf die Schuldverschreibungen erfolgen nach Maßgabe von 7(2) an das Clearing System oder dessen Order zur Gutschrift auf den Konten der jeweiligen Kontoinhaber des Clearing Systems außerhalb der Vereinigten Staaten. Zahlungen von Zinsen. Zahlungen von Zinsen auf Schuldverschreibungen erfolgen nach Maßgabe von 7(2) an das (a) (b) 7 Payments Payment of Principal. Payment of principal in respect of the Notes shall be made in accordance with 7(2) to the Clearing System or to its order for credit to the accounts of the relevant account holders of the Clearing System outside the United States. Payment of Interest. Payment of interest on Notes shall be made in accordance with 7(2) to the Clearing System or to its order for

59 59 Clearing System oder dessen Order zur Gutschrift auf den Konten der jeweiligen Kontoinhaber des Clearing Systems. Zahlungen von Zinsen auf Schuldverschreibungen, die durch die Vorläufige Globalurkunde verbrieft sind, erfolgen nach Maßgabe von 7(2) an das Clearing System oder dessen Order zur Gutschrift auf den Konten der jeweiligen Kontoinhaber des Clearing Systems, und zwar nach ordnungsgemäßer Bescheinigung gemäß 2(3)(b). (2) Zahlungsweise. Vorbehaltlich geltender steuerlicher und sonstiger gesetzlicher Regelungen und Vorschriften erfolgen zu leistende Zahlungen auf die Schuldverschreibungen in der Festgelegten Währung. (3) Erfüllung. Die Emittentin und die Garantin werden durch Leistung der Zahlung an das Clearing System oder dessen Order von ihrer Zahlungspflicht befreit. (4) Zahltag. Fällt der Fälligkeitstag für eine Zahlung von Kapital und/oder Zinsen in Bezug auf eine Schuldverschreibung auf einen Tag, der kein Geschäftstag ist, dann haben die Gläubiger keinen Anspruch auf Zahlung vor dem nächsten Tag, der ein Geschäftstag ist, und sind nicht berechtigt, weitere Zinsen oder sonstige Zahlungen aufgrund dieser Verspätung zu verlangen. (5) Bezugnahmen auf Kapital und Zinsen. Bezugnahmen in diesen Anleihebedingungen auf Kapital der Schuldverschreibungen schließen, soweit anwendbar, die folgenden Beträge ein: den Betrag, zu dem die Schuldverschreibungen gemäß 6 zurückzuzahlen sind, jeden Aufschlag sowie sonstige auf oder in Bezug auf die Schuldverschreibungen zahlbaren Beträge. Bezugnahmen in diesen Anleihebedingungen auf Zinsen auf Schuldverschreibungen schließen, soweit anwendbar, sämtliche gemäß 8 zahlbaren Zusätzlichen Beträge ein. credit to the accounts of the relevant account holders of the Clearing System. Payment of interest on Notes represented by the Temporary Global Note shall be made in accordance with 7(2) to the Clearing System or to its order for credit to the accounts of the relevant account holders of the Clearing System, upon due certification as provided in 2(3)(b). (2) Manner of Payment. Subject to applicable fiscal and other laws and regulations, payments of amounts due in respect of the Notes shall be made in the Specified Currency. (3) Discharge. The Issuer and the Guarantor shall be discharged by payment to, or to the order of, the Clearing System. (4) Payment Day. If the due date for payment of any principal and/or interest in respect of any Note is not a Business Day then the Holders shall not be entitled to payment until the next day which is a Business Day and shall not be entitled to further interest or other payment in respect of such delay. (5) References to Principal and Interest. References in these Terms and Conditions to principal in respect of the Notes shall be deemed to include, as applicable, the following amounts: the amount at which the Notes are redeemed pursuant to 6, any premium and any other amounts which may be payable under or in respect of the Notes. References in these Terms and Conditions to interest in respect of the Notes shall be deemed to include, as applicable, any Additional Amounts which may be payable under 8.

60 60 (6) Hinterlegung von Kapital und Zinsen. Die Emittentin und die Garantin sind berechtigt, beim Amtsgericht Hamburg Zins- oder Kapitalbeträge zu hinterlegen, die von den Gläubigern nicht innerhalb von zwölf Monaten nach dem Fälligkeitstag beansprucht worden sind, auch wenn die Gläubiger sich nicht in Annahmeverzug befinden. Soweit eine solche Hinterlegung erfolgt und auf das Recht der Rücknahme verzichtet wird, erlöschen die jeweiligen Ansprüche der Gläubiger. (6) Deposit of Principal and Interest. The Issuer and the Guarantor may deposit with the local court in Hamburg amounts of interest or principal not claimed by the Holders within twelve months after the due date, even though such Holders may not be in default of acceptance of payment. If and to the extent that such deposit is effected and the right of withdrawal is waived, the respective claims of such Holders shall cease. 8 Steuern (1) Zusätzliche Beträge. Sämtliche auf die Schuldverschreibungen zu zahlenden Beträge sind ohne Einbehalt oder Abzug von oder aufgrund von gegenwärtigen oder zukünftigen Steuern oder sonstigen Abgaben gleich welcher Art zu leisten, die von oder im Großherzogtum Luxemburg bzw. von oder in der Bundesrepublik Deutschland oder für dessen bzw. deren Rechnung oder von oder für Rechnung einer politischen Untergliederung oder Steuerbehörde des Großherzogtums Luxemburg oder in dem Großherzogtum Luxemburg bzw. der oder in der Bundesrepublik Deutschland auferlegt oder erhoben werden, es sei denn, dieser Einbehalt oder Abzug ist gesetzlich vorgeschrieben. In diesem Fall wird die Emittentin oder die Garantin diejenigen zusätzlichen Beträge (die "Zusätzlichen Beträge") zahlen, die erforderlich sind, damit die den Gläubigern zufließenden Nettobeträge nach diesem Einbehalt oder Abzug jeweils den Beträgen entsprechen, die ohne einen solchen Einbehalt oder Abzug von den Gläubigern empfangen worden wären; die Verpflichtung zur Zahlung solcher Zusätzlichen Beträge besteht jedoch nicht im Hinblick auf Steuern und Abgaben, die: (a) von einer als Depotbank oder Inkassobeauftragter des Gläubigers handelnden Person oder sonst auf andere Weise zu entrichten sind als dadurch, dass die Emittentin oder die Garantin aus den von ihr zu leistenden Zahlungen von Kapital oder Zinsen einen Abzug oder Einbehalt vornimmt; 8 Taxation (1) Additional Amounts. All amounts payable in respect of the Notes shall be made without withholding or deduction for or on account of any present or future taxes or duties of whatever nature imposed or levied by way of withholding or deduction by or on behalf of the Grand Duchy of Luxembourg or (as the case may be) the Federal Republic of Germany or any political subdivision or any authority thereof or therein having power to tax unless the Issuer or the Guarantor is required by law to make such withholding or deduction. In such event, the Issuer or the Guarantor shall pay such additional amounts (the "Additional Amounts") as shall be necessary in order that the net amounts received by the Holders, after such withholding or deduction shall equal the respective amounts of principal and interest which would otherwise have been receivable in the absence of such withholding or deduction; except that no such Additional Amounts shall be payable on account of any taxes or duties which: (a) are payable by any person acting as custodian bank or collecting agent on behalf of a Holder, or otherwise in any manner which does not constitute a deduction or withholding by the Issuer or the Guarantor from payments of principal or interest made by it;

61 61 (b) (c) (d) (e) wegen einer gegenwärtigen oder früheren persönlichen oder geschäftlichen Beziehung des Gläubigers zu dem Großherzogtum Luxemburg bzw. Deutschland zu zahlen sind, und nicht allein deshalb, weil Zahlungen auf die Schuldverschreibungen aus Quellen in dem Großherzogtum Luxemburg oder Deutschland stammen (oder für Zwecke der Besteuerung so behandelt werden) oder dort besichert sind; aufgrund (i) einer Richtlinie oder Verordnung der Europäischen Union betreffend die Besteuerung von Zinserträgen oder (ii) einer zwischenstaatlichen Vereinbarung über deren Besteuerung, an der das Großherzogtum Luxemburg, Deutschland oder die Europäische Union beteiligt ist, oder (iii) einer gesetzlichen Vorschrift, die diese Richtlinie, Verordnung oder Vereinbarung umsetzt oder befolgt, abzuziehen oder einzubehalten sind; von einer Zahlstelle einbehalten oder abgezogen werden, wenn die Zahlung von einer anderen Zahlstelle ohne den Einbehalt oder Abzug hätte vorgenommen werden können; wegen einer Rechtsänderung zu zahlen sind, welche später als 30 Tage nach Fälligkeit der betreffenden Zahlung von Kapital oder Zinsen oder, wenn dies später erfolgt, ordnungsgemäßer Bereitstellung aller fälligen Beträge und einer diesbezüglichen Bekanntmachung gemäß 12 wirksam wird; (f) durch die Erfüllung von gesetzlichen Anforderungen oder durch die Vorlage einer Nichtansässigkeitserklärung oder durch die sonstige Geltendmachung eines Anspruchs auf Befreiung gegenüber der betreffenden Steuerbehörde vermeidbar sind oder gewesen wären; (g) abgezogen oder einbehalten werden, weil der wirtschaftliche Eigentümer der (b) (c) (d) (e) (f) (g) are payable by reason of the Holder having, or having had, some personal or business connection with the Grand Duchy of Luxembourg or the Federal Republic of Germany and not merely by reason of the fact that payments in respect of the Notes are, or for purposes of taxation are deemed to be, derived from sources in, or are secured in, the Grand Duchy of Luxembourg or the Federal Republic of Germany; are withheld or deducted pursuant to (i) any European Union directive or regulation concerning the taxation of interest income, or (ii) any international treaty or understanding relating to such taxation and to which the Grand Duchy of Luxembourg, the Federal Republic of Germany or the European Union is a party, or (iii) any provision of law implementing, or complying with, or introduced to conform with, such Directive, Regulation, treaty or understanding; are withheld or deducted by a Paying Agent from a payment if the payment could have been made by another Paying Agent without such withholding or deduction; are payable by reason of a change in law that becomes effective more than 30 days after the relevant payment becomes due, or is duly provided for and notice thereof is published in accordance with 12, whichever occurs later; are avoidable or would have been avoidable through compliance with statutory requirements or through the submission of a declaration of non-residence or by otherwise enforcing a claim for exemption at the relevant tax authority; are deducted or withheld because the beneficial owner of the Notes is not itself their legal owner (Holder)

62 62 (h) Schuldverschreibungen nicht selbst rechtlicher Eigentümer (Gläubiger) der Schuldverschreibungen ist und der Abzug oder Einbehalt bei Zahlungen an den wirtschaftlichen Eigentümer nicht erfolgt wäre oder eine Zahlung Zusätzlicher Beträge bei einer Zahlung an den wirtschaftlichen Eigentümer nach Maßgabe der vorstehenden Regelungen hätte vermieden werden können, wenn dieser zugleich rechtlicher Eigentümer (Gläubiger) der Schuldverschreibungen gewesen wäre; oder aufgrund der Vorschriften in Bezug auf Abschnitte des US Bundessteuergesetzes von 1986 ("Internal Revenue Code"), einer in Abschnitt 1471(b) des Internal Revenue Code beschriebenen Vereinbarung oder anderweitig aufgrund eines Gesetzes zur Umsetzung zwischenstaatlicher Vertragswerke in Bezug auf diese abgezogen oder einbehalten werden. (2) Andere Steuerrechtsordnung. Falls die Emittentin zu irgendeinem Zeitpunkt einer anderen Steuerrechtsordnung als der gegenwärtig maßgeblichen Steuerrechtsordnung der Emittentin oder einer zusätzlichen Steuerrechtsordnung unterworfen wird, sollen die Bezugnahmen in diesem 8 auf die Rechtsordnung der Emittentin als Bezugnahmen auf die Rechtsordnung der Emittentin und/oder diese anderen Rechtsordnungen gelesen und ausgelegt werden. (h) and no deduction or withholding would have been made from payments to the beneficial owner, or payment of any Additional Amounts could have been avoided by making payment to the beneficial owner in accordance with the above provisions if such beneficial owner had also been the legal owner (Holder) of the Notes; or are deducted or withheld in respect of sections of the US Internal Revenue Code of 1986 ("Internal Revenue Code"), any agreements described in Section 1471(b) of the Internal Revenue Code, or under any law implementing an intergovernmental approach to any of the foregoing. (2) Other Tax Jurisdiction. If at any time the Issuer becomes subject to any taxing jurisdiction other than, or in addition to, the currently relevant taxing jurisdiction of the Issuer, references in this 8 to the jurisdiction of the Issuer shall be read and construed as references to the jurisdiction of the Issuer and/or to such other jurisdiction(s). 9 Vorlegungsfrist Die in 801 Absatz 1 Satz 1 Bürgerliches Gesetzbuch bestimmte Vorlegungsfrist wird für die Schuldverschreibungen auf zehn Jahre verkürzt. 9 Term of Presentation The presentation period of the Notes provided in 801 paragraph 1 sentence 1 of the German Civil Code (Bürgerliches Gesetzbuch) is reduced to ten years. 10 Zahlstellen und Berechnungsstelle (1) Hauptzahlstelle. Die Hauptzahlstelle (die "Hauptzahlstelle") ist: 10 Paying Agents and Calculation Agent (1) Principal Paying Agent. Principal paying agent (the "Principal Paying Agent") shall be:

63 63 HSBC Bank plc (2) Berechnungsstelle. Die Berechnungsstelle (die "Berechnungsstelle") ist: HSBC Bank plc (3) Erfüllungsgehilfen der Emittentin. Die Hauptzahlstelle und die Berechnungsstelle handeln ausschließlich als Beauftragte der Emittentin und übernehmen keine Verpflichtungen gegenüber den Gläubigern; es wird kein Vertrags-, Auftrags- oder Treuhandverhältnis zwischen ihnen und den Gläubigern begründet. (4) Berechnungen der Berechnungsstelle. Sämtliche Bescheinigungen, Mitteilungen, Gutachten, Festsetzungen, Berechnungen, Quotierungen und Entscheidungen, die von der Berechnungsstelle für die Zwecke dieser Anleihebedingungen gemacht, abgegeben, getroffen oder eingeholt werden, sind (sofern nicht vorsätzliches Fehlverhalten oder ein offensichtlicher Irrtum vorliegt) für die Emittentin, die Gläubiger und die Zahlstellen bindend. (5) Ersetzung von Hauptzahlstelle und Berechnungsstelle. Die Emittentin behält sich das Recht vor, jederzeit eine weitere Zahlstelle (gemeinsam mit der Hauptzahlstelle, die "Zahlstellen", und jede eine "Zahlstelle") oder eine andere Zahlstelle oder Berechnungsstelle zu beauftragen oder eine solche Beauftragung zu beenden und zusätzliche oder Nachfolge-Zahlstellen bzw. Berechnungsstellen zu ernennen. Den Gläubigern werden Änderungen in Bezug auf die Zahlstellen oder die Berechnungsstelle oder ihre jeweils angegebenen Geschäftsstellen unverzüglich gemäß 12 mitgeteilt. HSBC Bank plc (2) Calculation Agent. Calculation agent (the "Calculation Agent") shall be: HSBC Bank plc (3) Agents of the Issuer. The Principal Paying Agent and the Calculation Agent act solely as agents of the Issuer and do not assume any obligations towards or relationship of contract, agency or trust for or with any of the Holders. (4) Calculations made by the Calculation Agent. All certificates, communications, opinions, determinations, calculations, quotations and decisions given, expressed, made or obtained for the purposes of the provisions of these Conditions of Issue by the Calculation Agent shall (in the absence of wilful misconduct or manifest error) be binding upon the Issuer, the Holders and the Paying Agents. (5) Replacement of Principal Paying Agent and Calculation Agent. The Issuer reserves the right at any time to appoint an additional paying agent (together with the Principal Paying Agent, the "Paying Agents, and each a "Paying Agent") or to vary or terminate the appointment of any Paying Agent or the Calculation Agent and to appoint successor or additional Paying Agents or a successor Calculation Agent. Notice of any change in the Paying Agents or Calculation Agent or in the specified office of any Paying Agent or the Calculation Agent will be given without undue delay to the Holders in accordance with Begebung weiterer Schuldverschreibungen, Entwertung (1) Begebung weiterer Schuldverschreibungen. Die Emittentin ist berechtigt, jederzeit ohne Zustimmung der Gläubiger weitere Schuldverschreibungen mit gleicher Ausstattung (mit Ausnahme des Tags der Begebung, des Verzinsungsbeginns und/oder des Ausgabekurses) in der Weise zu begeben, dass sie mit diesen Schuldverschreibungen eine einheitliche 11 Further Issues, Cancellation (1) Further Issues. The Issuer may from time to time, without the consent of the Holders, issue further notes having the same terms and conditions as the Notes in all respects (except for the issue date, the interest commencement date and/or the issue price) so as to form a single series with the Notes.

64 64 Serie bilden. (2) Entwertung. Sämtliche vollständig zurückgezahlten Schuldverschreibungen sind unverzüglich zu entwerten und können nicht wiederbegeben oder wiederverkauft werden. (2) Cancellation. All Notes redeemed in full shall be cancelled forthwith and may not be reissued or resold. 12 Mitteilungen (1) Bekanntmachungen. Die Schuldverschreibungen betreffende Bekanntmachungen werden im Bundesanzeiger veröffentlicht; solange die Schuldverschreibungen auf der offiziellen Liste der Luxemburger Börse notiert und zum Handel am regulierten Markt der Luxemburger Börse zugelassen sind, erfolgen darüber hinaus mit Ausnahme der in 14 vorgesehenen Bekanntmachungen, die ausschließlich gemäß den Bestimmungen des SchVG erfolgen, alle die Schuldverschreibungen betreffenden Mitteilungen durch elektronische Publikation auf der Internetseite der Luxemburger Börse ( Jede derartige Mitteilung gilt am dritten Tag nach dem Tag der Veröffentlichung (oder bei mehreren Veröffentlichungen am dritten Kalendertag nach dem Tag der ersten solchen Veröffentlichung) als wirksam erfolgt. (2) Mitteilungen an das Clearingsystem. Solange die Schuldverschreibungen an der Luxemburger Börse notieren, gilt 12(1). Soweit die Regeln der Luxemburger Börse es zulassen, kann die Emittentin die relevante Mitteilung betreffend die Schuldverschreibungen auch an das Clearingsystem zur Weiterleitung an die Gläubiger übermitteln. Jede derartige Mitteilung gilt als den Gläubigern mitgeteilt, sobald diese Mitteilung an das Clearingsystem zur Weiterleitung an die Gläubiger übermittelt wurde. 12 Notices (1) Publication. All notices concerning the Notes shall be published in the Federal Gazette (Bundesanzeiger) and in addition, for as long as Notes are listed on the official list of and admitted to trading on the regulated market of the Luxembourg Stock Exchange, all notices concerning the Notes, other than any notices stipulated in 14 which shall be made exclusively pursuant to the provisions of the SchVG, shall be made by means of electronic publication on the website of the Luxembourg Stock Exchange ( Any such notice shall be deemed to have been given to the Holders on third day following the date of such publication (or, if published more than once, on the third day following the date of the first of such publications). (2) Notification to Clearing System. So long as any Notes are listed on the Luxembourg Stock Exchange, 12(1) shall apply. If the Rules of the Luxembourg Stock Exchange so permit, the Issuer may deliver the relevant notice concerning the Notes also to the Clearing System for communication by the Clearing System to the Holders. Any such notice shall be deemed to have been given to the Holders when such notice is sent to the Clearing Systems for publication to the Holders.

65 65 (3) Form der Mitteilung der Gläubiger. Mitteilungen, die von einem Gläubiger gemacht werden, müssen schriftlich erfolgen und zusammen mit dem Nachweis seiner Inhaberschaft gemäß 15(3) an die Zahlstelle geleitet werden. Eine solche Mitteilung kann von einem Gläubiger an die Zahlstelle über das Clearing System in der von der Zahlstelle und dem Clearing System dafür vorgesehenen Weise erfolgen. (3) Form of Notice of Holders. Notices to be given by any Holder shall be made by means of a written declaration to be delivered together with an evidence of the Holder's entitlement in accordance with 15(3) to the Paying Agent. Such notice may be given through the Clearing System in such manner as the Paying Agent and the Clearing System may approve for such purpose. 13 Ersetzung (1) Ersetzung. Die Emittentin ist jederzeit berechtigt, ohne Zustimmung der Gläubiger die Garantin oder ein Tochterunternehmen der Garantin als neue Anleiheschuldnerin für alle sich aus oder im Zusammenhang mit den Schuldverschreibungen ergebenden Verpflichtungen mit Schuld befreiender Wirkung für die Emittentin an die Stelle der Emittentin zu setzen (die "Neue Anleiheschuldnerin"), sofern (a) (b) die Neue Anleiheschuldnerin alle Verpflichtungen der Emittentin in Bezug auf die Schuldverschreibungen übernimmt; die Neue Anleiheschuldnerin und die Garantin (sofern die Garantin nicht selbst die Neue Anleiheschuldnerin ist) sämtliche für die Schuldnerersetzung und die Erfüllung der Verpflichtungen aus oder im Zusammenhang mit den Schuldverschreibungen bzw. der Nachrangigen Garantie (einschließlich der Garantiebestätigung) erforderlichen Genehmigungen und Zustimmungen erhalten haben; (c) die Neue Anleiheschuldnerin berechtigt ist, an die Hauptzahlstelle die zur Erfüllung der Zahlungsverpflichtungen auf die Schuldverschreibungen zu zahlenden Beträge in der hierin Festgelegten Währung zu zahlen, und zwar ohne Abzug oder Einbehalt von Steuern oder sonstigen Abgaben jedweder Art, die von dem Land (oder den Ländern), in dem (in denen) die Neue Anleiheschuldnerin ihren Sitz oder Steuersitz hat, auferlegt, 13 Substitution (1) Substitution. The Issuer may at any time, without the consent of the Holders, substitute for the Issuer the Guarantor or any Subsidiary of the Guarantor as new debtor (the "New Debtor") in respect of all obligations arising under or in connection with the Notes, with the effect of releasing the Issuer of all such obligations, if: (a) the New Debtor assumes all obligations of the Issuer in respect of the Notes; (b) (c) the New Debtor and the Guarantor (unless the Guarantor is the New Debtor) has obtained all authorisations and approvals necessary for the substitution and the fulfilment of the obligations arising under or in connection with the Notes or (as the case may be) the Subordinated Guarantee (including the Guarantee Confirmation); the New Debtor may transfer to the Principal Paying Agent in the currency required hereunder and without being obligated to deduct or withhold any taxes or other duties of whatever nature imposed, levied or deducted by the country (or countries) in which the New Debtor has its domicile or tax residence all amounts required for the performance of the payment obligations arising from or in connection with the Notes;

66 66 (d) (e) (f) erhoben oder eingezogen werden; die Neue Anleiheschuldnerin sich verpflichtet hat, die Gläubiger hinsichtlich solcher Steuern, Abgaben oder behördlicher Gebühren freizustellen, die den Gläubigern bezüglich der Ersetzung auferlegt werden; falls die Garantin nicht selbst die Neue Anleiheschuldnerin ist, (i) die Garantin erklärt hat, dass ihre Nachrangige Garantie im Zusammenhang mit den Schuldverschreibungen auch auf die Neue Anleiheschuldnerin Anwendung findet (jede solche Erklärung eine "Garantiebestätigung"), und (ii) die Verpflichtungen aus der Nachrangigen Garantie in keiner Weise lediglich deshalb beschränkt sind, weil die Emittentin durch die Neue Anleiheschuldnerin ersetzt wurde; jede Wertpapierbörse, an der die Schuldverschreibungen zugelassen sind, bestätigt hat, dass nach der vorgesehenen Ersetzung durch die Neue Anleiheschuldnerin diese Schuldverschreibungen weiterhin an dieser Wertpapierbörse zugelassen sind; (g) aufgrund der Ersetzung kein Ereignis eintreten würde, welches die Neue Anleiheschuldnerin dazu berechtigen würde, die Schuldverschreibungen gemäß 6(4) zu kündigen und zurückzuzahlen; und (h) der Hauptzahlstelle jeweils ein Rechtsgutachten bezüglich der betroffenen Rechtsordnungen von anerkannten Rechtsanwälten vorgelegt wird, das bestätigt, dass die Bestimmungen in den vorstehenden Unterabsätzen (a), (b) und (c) erfüllt wurden. (2) Bezugnahmen. Im Fall einer Schuldnerersetzung nach Maßgabe von 13(1) gilt jede Bezugnahme in diesen Anleihebedingungen auf die Emittentin als eine solche auf die Neue Anleiheschuldnerin und jede Bezugnahme auf das Großherzogtum Luxemburg als eine solche auf den Staat, in welchem die Neue Anleiheschuldnerin (d) (e) (f) (g) (h) the New Debtor has agreed to indemnify the Holders against such taxes, duties or governmental charges as may be imposed on the Holders in connection with the substitution; unless the Guarantor is the New Debtor, (i) the Guarantor has declared that its Subordinated Guarantee shall with respect to the Notes also apply to the New Debtor (each such declaration a "Guarantee Confirmation"), and (ii) the obligations under the Subordinated Guarantee will not be limited in any way solely as a consequence of the Issuer being substituted by the New Debtor; each stock exchange on which the Notes are listed shall have confirmed that, following the proposed substitution of the New Debtor, such Notes will continue to be listed on such stock exchange; no event would occur as a result of the substitution that would give rise to the right of the New Debtor to call the Notes for redemption pursuant to 6(4); and there shall have been delivered to the Principal Paying Agent an opinion or opinions of lawyers of recognised standing to the effect that subparagraphs (a), (b) and (c) above have been satisfied. (2) References. In the event of a substitution pursuant to 13(1), any reference in these Terms and Conditions to the Issuer shall be a reference to the New Debtor and any reference to the Grand Duchy of Luxembourg shall be a reference to the New Debtor's country of domicile for tax purposes.

67 67 steuerlich ansässig ist. (3) Mitteilung und Wirksamwerden der Ersetzung. Die Ersetzung der Emittentin ist gemäß 12 mitzuteilen. Mit der Mitteilung der Ersetzung wird die Ersetzung wirksam und die Emittentin (und im Falle einer wiederholten Anwendung dieses 13 jede frühere Neue Anleiheschuldnerin) von ihren sämtlichen Verpflichtungen aus oder im Zusammenhang mit den Schuldverschreibungen frei. Im Falle einer solchen Ersetzung werden die Wertpapierbörsen informiert, an denen die Schuldverschreibungen notiert sind. (3) Notice and Effectiveness of Substitution. Notice of any substitution of the Issuer shall be given by publication in accordance with 12. Upon such publication, the substitution shall become effective, and the Issuer and, in the event of a repeated application of this 13, any previous New Debtor shall be discharged from any and all obligations under or in connection with the Notes. In the case of such substitution, the stock exchange(s), if any, on which the Notes are then listed will be notified. 14 Änderung der Anleihebedingungen, Gemeinsamer Vertreter (1) Änderung der Anleihebedingungen. Die Gläubiger können entsprechend den Bestimmungen des Gesetzes über Schuldverschreibungen aus Gesamtemissionen ("SchVG") durch einen Beschluss mit der in 14(2) bestimmten Mehrheit über einen im SchVG zugelassenen Gegenstand eine Änderung der Anleihebedingungen und der Bedingungen der Nachrangigen Garantie mit der Emittentin und der Garantin vereinbaren. Die Mehrheitsbeschlüsse der Gläubiger sind für alle Gläubiger gleichermaßen verbindlich. Ein Mehrheitsbeschluss der Gläubiger, der nicht gleiche Bedingungen für alle Gläubiger vorsieht, ist unwirksam, es sei denn, die benachteiligten Gläubiger stimmen ihrer Benachteiligung ausdrücklich zu. (2) Mehrheitserfordernisse. Die Gläubiger entscheiden mit einer Mehrheit von 75% der an der Abstimmung teilnehmenden Stimmrechte. Beschlüsse, durch welche der wesentliche Inhalt der Anleihebedingungen nicht geändert wird und die keinen Gegenstand des 5(3), Nr. 1 bis Nr. 9 SchVG betreffen, bedürfen zu ihrer Wirksamkeit einer einfachen Mehrheit der an der Abstimmung teilnehmenden Stimmrechte. (3) Abstimmung ohne Versammlung. Alle Abstimmungen werden ausschließlich im Wege der Abstimmung ohne Versammlung durchgeführt. Eine Gläubigerversammlung und eine Übernahme der Kosten für eine solche Versammlung durch die Emittentin findet 14 Amendments to the Terms and Conditions, Holders' Representative (1) Amendment to the Terms and Conditions. In accordance with the German Act on Issues of Debt Securities (Gesetz über Schuldverschreibungen aus Gesamtemissionen "SchVG"), the Holders may agree with the Issuer and the Guarantor on amendments to the Terms and Conditions and the terms and conditions of the Subordinated Guarantee with regard to matters permitted by the SchVG by resolution with the majority specified in 14(2). Majority resolutions of the Holders shall be binding on all Holders. A majority resolution of the Holders which does not provide for identical conditions for all Holders is void, unless Holders who are disadvantaged have expressly consented to their being treated disadvantageously. (2) Majority. Resolutions shall be passed by a majority of not less than 75% of the votes cast. Resolutions relating to amendments of the Terms and Conditions which are not material and which do not relate to the matters listed in 5(3), nos. 1 to 9 SchVG require a simple majority of the votes cast. (3) Vote without a meeting. All votes will be taken exclusively by vote taken without a meeting. A meeting of Holders and the assumption of the fees by the Issuer for such a meeting will only take place in the circumstances of 18(4) sentence 2 SchVG.

68 68 ausschließlich im Fall des 18(4) Satz 2 SchVG statt. (4) Leitung der Abstimmung. Die Abstimmung wird von einem von der Emittentin beauftragten Notar oder, falls der Gemeinsame Vertreter zur Abstimmung aufgefordert hat, vom Gemeinsamen Vertreter geleitet. (5) Stimmrecht. An Abstimmungen der Gläubiger nimmt jeder Gläubiger nach Maßgabe des Nennwerts oder des rechnerischen Anteils seiner Berechtigung an den ausstehenden Schuldverschreibungen teil. (6) Gemeinsamer Vertreter. Die Gläubiger können durch Mehrheitsbeschluss zur Wahrnehmung ihrer Rechte einen gemeinsamen Vertreter (der "Gemeinsame Vertreter") für alle Gläubiger bestellen. Der Gemeinsame Vertreter hat die Aufgaben und Befugnisse, welche ihm durch Gesetz oder von den Gläubigern durch Mehrheitsbeschluss eingeräumt wurden. Er hat die Weisungen der Gläubiger zu befolgen. Soweit er zur Geltendmachung von Rechten der Gläubiger ermächtigt ist, sind die einzelnen Gläubiger zur selbständigen Geltendmachung dieser Rechte nicht befugt, es sei denn, der Mehrheitsbeschluss sieht dies ausdrücklich vor. Über seine Tätigkeit hat der Gemeinsame Vertreter den Gläubigern zu berichten. Für die Abberufung und die sonstigen Rechte und Pflichten des Gemeinsamen Vertreters gelten die Vorschriften des SchVG. (4) Chair of the vote. The vote will be chaired by a notary appointed by the Issuer or, if the Holders' Representative has convened the vote, by the Holders' Representative. (5) Voting rights. Each Holder participating in any vote of the Holders shall cast votes in accordance with the principal amount or the notional share of its entitlement to the outstanding Notes. (6) Holders' Representative. The Holders may by majority resolution appoint a common representative (the "Holders' Representative") to exercise the Holders' rights on behalf of each Holder. The Holders' Representative shall have the duties and powers provided by law or granted by majority resolution of the Holders. The Holders' Representative shall comply with the instructions of the Holders. To the extent that the Holders' Representative has been authorised to assert certain rights of the Holders, the Holders shall not be entitled to assert such rights themselves, unless explicitly provided for in the relevant majority resolution. The Holders' Representative shall report to the Holders on its activities. The regulations of the SchVG apply with regard to the recall and the other rights and obligations of the Holders' Representative. 15 Anwendbares Recht und Gerichtsstand (1) Anwendbares Recht. Form und Inhalt der Schuldverschreibungen sowie die Rechte und Pflichten der Gläubiger und der Emittentin bestimmen sich in jeder Hinsicht nach dem Recht der Bundesrepublik Deutschland. Die Bestimmungen der 86 bis 94-8 des Luxemburger Gesetzes vom 10. August 1915 bezüglich Handelsgesellschaften, in der jeweils gültigen Fassung, sind auf diese Schuldverschreibungen nicht anwendbar. (2) Gerichtsstand. Nicht ausschließlich zuständig für sämtliche im Zusammenhang mit den Schuldverschreibungen entstehenden 15 Governing Law and Place of Jurisdiction (1) Applicable Law. The Notes, with regard to both form and content, as well as all rights and obligations of the Holders and the Issuer shall in all respects be governed by the laws of the Federal Republic of Germany. The provisions of 86 to 94-8 of the Luxembourg law dated 10 August 1915 concerning commercial companies, as amended, will not apply to the Notes. (2) Place of Jurisdiction. The regional court (Landgericht) in Frankfurt am Main, Federal Republic of Germany, shall have non-exclusive jurisdiction for any action

69 69 Klagen oder sonstige Verfahren ("Rechtsstreitigkeiten") ist das Landgericht Frankfurt am Main, Bundesrepublik Deutschland. Für Entscheidungen gemäß 9(2), 13(3) und 18(2) SchVG ist gemäß 9(3) Satz 1 1. Alt. SchVG das Amtsgericht Frankfurt am Main, Bundesrepublik Deutschland zuständig. Für Entscheidungen über die Anfechtung von Beschlüssen der Gläubiger ist gemäß 20(3) Satz 3 1. Alt. SchVG das Landgericht Frankfurt am Main, Bundesrepublik Deutschland ausschließlich zuständig. (3) Gerichtliche Geltendmachung. Jeder Gläubiger von Schuldverschreibungen ist berechtigt, in jedem Rechtsstreit gegen die Emittentin oder in jedem Rechtsstreit, in dem der Gläubiger und die Emittentin Partei sind, seine Rechte aus diesen Schuldverschreibungen im eigenen Namen auf der folgenden Grundlage zu schützen oder geltend zu machen: (i) (ii) indem er eine Bescheinigung der Depotbank beibringt, bei der er für die Schuldverschreibungen ein Wertpapierdepot unterhält, welche (a) den vollständigen Namen und die vollständige Adresse des Gläubigers enthält, (b) den Gesamtnennbetrag der Schuldverschreibungen bezeichnet, die unter dem Datum der Bestätigung auf dem Wertpapierdepot verbucht sind und (c) bestätigt, dass die Depotbank gegenüber dem Clearing System eine schriftliche Erklärung abgegeben hat, die die vorstehend unter (a) und (b) bezeichneten Informationen enthält; und indem er eine Kopie der die betreffenden Schuldverschreibungen verbriefenden Globalurkunde vorlegt, deren Übereinstimmung mit dem Original eine vertretungsberechtigte Person des Clearing Systems oder des Verwahrers des Clearing Systems bestätigt hat, ohne dass eine Vorlage der Originalbelege oder der die Schuldverschreibungen verbriefenden Globalurkunde in einem solchen Verfahren erforderlich wäre. Für die Zwecke des Vorstehenden bezeichnet "Depotbank" jede Bank oder or other legal proceedings ("Proceedings") arising out of or in connection with the Notes. Pursuant to 9(3) sentence 1 1 st alternative SchVG, the local court (Amtsgericht) Frankfurt am Main, Federal Republic of Germany shall have jurisdiction to decide on any matters pursuant to 9(2), 13(3) and 18(2) SchVG. Pursuant to 20(3) sentence 3 1 st alternative SchVG, the regional court (Landgericht) Frankfurt am Main, Federal Republic of Germany shall have exclusive jurisdiction to decide on the challenge of resolutions of the Holders. (3) Enforcement. Any Holder of Notes may in any Proceedings against the Issuer, or to which the Holder and the Issuer are parties, protect and enforce in its own name its rights arising under these Notes on the following basis: (i) (ii) by submitting a certificate issued by its Depositary Bank with which he maintains a securities account, which (a) states the full name and address of the Holder, (b) specifies the aggregate principal amount of the Notes credited on the date of such certificate to such Holder's securities account and (c) confirms that the Depositary Bank has given a written notice to the Clearing System containing the information pursuant to (a) and (b); and by bearing a copy of the relevant Global Note certified by a duly authorized officer of the Clearing System or the depositary as being a true copy without any requirement to submit originals of the relevant Global Note. For the purposes of the foregoing, "Depositary Bank" means any bank or

70 70 ein sonstiges anerkanntes Finanzinstitut, das berechtigt ist, das Wertpapierverwahrungsgeschäft zu betreiben und bei der/dem der Gläubiger ein Wertpapierdepot für die Schuldverschreibungen unterhält, einschließlich des Clearing Systems. Unbeschadet des Vorstehenden kann jeder Gläubiger seine Rechte aus den Schuldverschreibungen auch auf jede andere Weise schützen oder geltend machen, die im Land der Rechtsstreitigkeit prozessual zulässig ist. other financial institution of recognized standing authorized to engage in securities deposit business with which the Holder maintains a securities account in respect of the Notes, and includes the Clearing System. Without prejudice to the foregoing, any Holder may also protect and enforce its rights arising under these Notes in any other way, which is admitted in the country of the Proceedings. 16 Sprache Diese Anleihebedingungen sind in deutscher Sprache abgefasst. Eine Übersetzung in die englische Sprache ist beigefügt. Der deutsche Text ist bindend und maßgeblich. Die Übersetzung in die englische Sprache ist unverbindlich. 16 Language These Terms and Conditions are written in the German language and provided with an English language translation. The German version shall be the only legally binding version. The English language translation is provided for convenience only.

71 71 SUBORDINATED GUARANTEE NACHRANGIGE GARANTIE der VTG Aktiengesellschaft, Hamburg Bundesrepublik Deutschland (die "Garantin") zugunsten der Gläubiger der garantierten, nachrangigen, unbefristeten mit festem bzw. rücksetzbarem Zinssatz verzinslichen Schuldverschreibungen (die "Schuldverschreibungen") (ISIN: XS ) emittiert durch VTG Finance S.A. Luxemburg, Großherzogtum Luxemburg (die "Emittentin") SUBORDINATED GUARANTEE of VTG Aktiengesellschaft, Hamburg, Federal Republic of Germany (the "Guarantor") for the benefit of the holders of the 250,000,000 guaranteed, undated resettable fixed rate subordinated Notes (the "Notes") (ISIN: XS ) issued by VTG Finance S.A., Luxembourg, Grand Duchy of Luxembourg (the "Issuer") 1 NACHRANGIGE GARANTIE (1) Die Garantin garantiert hiermit unbedingt und unwiderruflich im Wege eines selbständigen Zahlungsversprechens gegenüber jedem Gläubiger der Schuldverschreibungen (die "Gläubiger") die ordnungsgemäße und pünktliche Zahlung aller Kapital-, Zins- und sonstigen auf die Schuldverschreibungen zahlbaren Beträge auf nachrangiger Basis (die "Nachrangige Garantie"). Diese Nachrangige Garantie besteht selbständig und unabhängig von den Verbindlichkeiten der Emittentin und gilt unabhängig von der Wirksamkeit und Durchsetzbarkeit der Verbindlichkeiten der Emittentin. (2) Sinn und Zweck dieser Nachrangigen Garantie ist es, sicherzustellen, dass die Gläubiger unter allen Umständen tatsächlicher oder rechtlicher Art und unabhängig von der Wirksamkeit und Durchsetzbarkeit der Verbindlichkeiten der Emittentin oder sonstiger Gründe, auf deren Basis die Emittentin Zahlungen möglicherweise nicht leistet, die in Form von Kapital- oder Zinszahlungen oder sonstigen Zahlungen gemäß den Anleihebedingungen an die Gläubiger zu leistenden Beträge bei Fälligkeit nach Maßgabe der Anleihebedingungen erhalten. 1 SUBORDINATED GUARANTEE (1) The Guarantor hereby unconditionally and irrevocably guarantees by way of an independent payment obligation (selbständiges Zahlungsversprechen) to each holder of the Notes (the "Holders") the due and punctual payment of principal of, and interest on, and any other amounts payable under the relevant Notes on a subordinated basis (the "Subordinated Guarantee"). This Subordinated Guarantee shall be separate and independent from the obligations of the Issuer and shall exist irrespective of the validity and enforceability of the obligations of the Issuer. (2) The intent and purpose of this Subordinated Guarantee is to ensure that the Holders under all circumstances, whether factual or legal, and regardless of the validity and enforceability of the obligations of the Issuer or of any other grounds on the basis of which the Issuer may fail to effect payment, shall receive the amounts payable as principal, interest and other amounts to the Holders pursuant to the Terms and Conditions on the due dates as provided for in the Terms and Conditions.

72 72 (3) Die Garantin verzichtet hiermit ausdrücklich auf alle der Emittentin zustehenden persönlichen Einreden des Hauptschuldners sowie auf alle der Emittentin zustehenden Einreden der Anfechtbarkeit oder Aufrechenbarkeit im Hinblick auf die Schuldverschreibungen. Dieser Verzicht auf die Einrede der Aufrechenbarkeit gilt nicht für (i) unbestrittene oder (ii) rechtskräftig festgestellte Gegenforderungen. (4) Die Garantin erklärt ausdrücklich, dass die Nachrangige Garantie unabhängig von allen anderen im Zusammenhang mit den Schuldverschreibungen gestellten Sicherheiten besteht, und verzichtet auf alle etwaigen aus einer Freigabe solcher anderen Sicherheiten entstehenden Rechte. (5) Die Zahlungsverpflichtungen der Garantin aus dieser Nachrangigen Garantie werden automatisch fällig und zahlbar, sofern und sobald die Emittentin eine Zahlung auf die Schuldverschreibungen nicht bei Fälligkeit gemäß den Anleihebedingungen leistet. (6) Diese Nachrangige Garantie ist mit der vollständigen und unwiderruflichen Befriedigung aller gemäß diesem 1 garantierten Ansprüche (die "Garantierten Verpflichtungen") abschließend erfüllt. Sollten Garantierte Verpflichtungen jedoch nur vorläufig erfüllt oder Gegenstand eines Anfechtungsrechts eines Insolvenzverwalters oder anderweitig anfechtbar sein, so bleibt die Nachrangige Garantie weiterhin in Kraft. (7) Solange Schuldverschreibungen ausstehen, jedoch nur bis zu dem Zeitpunkt, an dem alle Beträge an Kapital und Zinsen der Zahlstelle zur Verfügung gestellt wurden, wird die Garantin sicherstellen, dass die Emittentin stets ein Verbundenes Unternehmen der Garantin ist. (8) Für diesen Zweck gilt: (8) For this purpose: "Verbundenes Unternehmen" bezeichnet zu dem betreffenden Zeitpunkt in Bezug auf eine Person jedes verbundene Unternehmen im Sinne der Aktiengesetz (AktG). "Person" bezeichnet jede der folgenden Personen: natürliche Personen, Körperschaften, Personengesellschaften, Joint Ventures, Vereinigung, Aktiengesellschaften, Trusts, nicht rechtsfähige Ver- (3) The Guarantor hereby explicitly waives any personal defences of the Issuer (Einreden des Hauptschuldners) as well as any defences arising out of the Issuer's right of revocation (Anfechtbarkeit) or set-off (Aufrechenbarkeit) with respect to the Notes. This waiver shall not apply to any defences relating to any right of set-off with counterclaims that are (i) uncontested (unbestritten) or (ii) based on an unappealable (rechtskräftig festgestellt) court decision. (4) The Guarantor expressly consents to the Subordinated Guarantee being independent from any other security granted in connection with the Notes and waives any right which might result from the release of any such other security. (5) The Guarantor's payment obligations under this Subordinated Guarantee become automatically due and payable if and when the Issuer does not make a payment with respect to the Notes when such payment is due and payable pursuant to the Terms and Conditions. (6) This Subordinated Guarantee is discharged upon the full and irrevocable satisfaction of all claims guaranteed pursuant to this 1 (the "Guaranteed Obligations"). However, if any of the Guaranteed Obligations was only temporarily satisfied or may be set aside by an insolvency administrator (Anfechtungsrecht) or may otherwise be avoided, the Subordinated Guarantee shall continue in full force and effect. (7) The Guarantor shall ensure that, so long as any of the Notes are outstanding, but only up to the time all amounts of principal and interest have been placed at the disposal of the Paying Agent, the Issuer is at all times an Affiliate of the Guarantor. "Affiliate" means, at any time, and with respect to any Person, an affiliate within the meaning of sections 15 to 17 of the German Stock Corporation Act (Aktiengesetz). "Person" means any individual, corporation, partnership, joint venture, association, joint stock company, trust, unincorporated organisation, limited liability company or government (or any agency or

73 73 einigungen, Gesellschaften mit beschränkter Haftung, staatliche Stellen (oder Behörden oder Gebietskörperschaften) oder sonstige Rechtsträger. "Anleihebedingungen" bezeichnet die der jeweiligen Globalurkunde beigefügten Anleihebedingungen der Schuldverschreibungen. "Zahlstelle" bezeichnet vorbehaltlich einer Änderung, Abberufung, Bestellung oder eines Wechsels nach 10(5) der Anleihebedingungen die HSBC Bank plc. political subdivision thereof) or other entity. "Terms and Conditions" means the terms and conditions of the Notes, as annexed to the relevant global note. "Paying Agent" means, subject to any variation, termination, appointment or change in accordance with 10(5) of the Terms and Conditions, HSBC Bank plc. 2 STATUS (1) Status der Nachrangigen Garantie. Die Nachrangige Garantie begründet direkte, nicht besicherte, nachrangige Verbindlichkeiten der Garantin, die untereinander und mit jeder Gleichrangigen Verbindlichkeit gleichrangig sind und nur den Nachrangigen Verbindlichkeiten im Rang vorgehen; im Fall der Liquidation oder der Insolvenz der Garantin oder eines anderen der Abwendung der Insolvenz dienenden Verfahrens gegen die Garantin gehen die Verbindlichkeiten aus der Nachrangigen Garantie allen anderen bestehenden und zukünftigen Verbindlichkeiten der Garantin (mit Ausnahme der Gleichrangigen Verbindlichkeiten und der Nachrangigen Verbindlichkeiten), ob nachrangig oder nicht nachrangig, vollständig nach, soweit zwingende gesetzliche Vorschriften nichts anderes vorschreiben bzw. die Bedingungen des betreffenden Instruments nicht ausdrücklich etwas anderes vorsehen, so dass Zahlungen auf die Nachrangige Garantie solange nicht erfolgen, wie die Ansprüche, die nach diesem 2(1) der Nachrangigen Garantie im Rang vorgehen, nicht vollständig befriedigt sind. Die Rechte der Gläubiger aus der Nachrangigen Garantie gegenüber der Garantin begründen direkte, nicht besicherte und nachrangige Rechte im Sinne von 39 Absatz 2 InsO, die im Fall der Liquidation oder der Insolvenz der Garantin oder eines anderen der Abwendung der Insolvenz der Garantin dienenden Verfahrens untereinander und mit jeder Gleichrangigen Verbindlichkeit im Rang gleich stehen und nur den Nachrangigen Verbindlichkeiten im Rang 2 STATUS (1) Status of Subordinated Guarantee. The obligations of the Guarantor under the Subordinated Guarantee constitute direct, unsecured and subordinated obligations of the Guarantor, ranking pari passu among themselves, pari passu with all Parity Obligations and senior only to the Junior Obligations, and in the event of the liquidation or insolvency, or any other proceedings for the avoidance of insolvency, of, or against, the Guarantor, the obligations under the Subordinated Guarantee shall be fully subordinated to all other present and future obligations of the Guarantor (except for Parity Obligations and Junior Obligations), whether subordinated or unsubordinated, except as otherwise provided by mandatory provisions of law or as expressly provided for by the terms of the relevant instrument so that in any such event no amounts shall be payable in respect of the Subordinated Guarantee unless all claims that pursuant to this 2(1) rank senior to the Subordinated Guarantee have been satisfied in full. The rights of the Holders towards the Guarantor under the Subordinated Guarantee constitute direct, unsecured and subordinated claims in the meaning of 39 paragraph 2 of the German Insolvency Code, in the event of the liquidation or insolvency of the Guarantor or any other proceedings for the avoidance of insolvency of the Guarantor ranking pari passu among themselves, pari passu with all claims in respect of the Parity Obligations and senior only to the claims

74 74 vorgehen. Unter Beachtung dieser Nachrangregelung bleibt es der Garantin unbenommen, ihre Verbindlichkeiten aus der Nachrangigen Garantie auch aus dem sonstigen freien Vermögen zu bedienen. Den Gläubigern wird für ihre Rechte aus der Nachrangigen Garantie weder durch die Garantin noch durch Dritte irgendeine Sicherheit oder Garantie gestellt; eine solche Sicherheit oder Garantie wird auch zu keinem späteren Zeitpunkt gestellt werden. "Gleichrangige Verbindlichkeiten" bezeichnet alle bestehenden und zukünftigen Verbindlichkeiten (i) der Garantin, die gleichrangig im Verhältnis zu den Verbindlichkeiten der Garantin unter der Nachrangigen Garantie sind oder ausdrücklich als gleichrangig vereinbart sind oder (ii) die von einer Garantie oder Haftungsübernahme profitieren, bei der die Verbindlichkeiten der Garantin aus der betreffenden Garantie oder Haftungsübernahme mit den Verbindlichkeiten der Garantin aus der Nachrangigen Garantie als gleichrangig vereinbart sind. "Nachrangige Verbindlichkeiten" bezeichnet (i) die Stammaktien und etwaige Vorzugsaktien der Garantin, (ii) jede gegenwärtige oder zukünftige Aktie einer anderen Gattung von Aktien der Garantin, (iii) jedes andere gegenwärtige oder zukünftige Wertpapier, Namenswertpapier oder jedes andere Instrument, das von der Garantin begeben ist und bei dem die daraus folgenden Verbindlichkeiten der Garantin mit den Stammaktien oder etwaigen Vorzugsaktien der Garantin gleichrangig vereinbart sind und (iv) jedes gegenwärtige oder zukünftige Wertpapier, Namenswertpapier oder jedes andere Instrument, das von einem Tochterunternehmen der Garantin begeben und von der Garantin dergestalt garantiert ist oder für das die Garantin dergestalt die Haftung übernommen hat, dass die betreffenden Verbindlichkeiten der Garantin aus der maßgeblichen Garantie oder Haftungsübernahme mit den unter (i), (ii) und (iii) genannten Instrumenten gleichrangig oder als gleichrangig vereinbart sind. against the Issuer in respect of the Junior Obligations. Subject to this subordination provision, the Guarantor may satisfy its obligations under the Subordinated Guarantee also from other available assets of the Guarantor. No security or guarantee of whatever kind is, or shall at any time be, provided by the Guarantor or any other person securing rights of the Holders under the Subordinated Guarantee. "Parity Obligations" means any present or future obligations which (i) are assumed by the Guarantor and the obligations under which rank or are expressed to rank pari passu with the Guarantor's obligations under the Subordinated Guarantee, or (ii) benefit from a guarantee or support agreement expressed to rank pari passu with its obligations under the Subordinated Guarantee. "Junior Obligations" means (i) the ordinary shares and preferred shares (if any) of the Guarantor, (ii) any present or future share of any other class of shares of the Guarantor, (iii) any other present or future security, registered security or other instrument of the Guarantor under which the Guarantor's obligations rank or are expressed to rank pari passu with the ordinary shares or the preferred shares (if any) of the Guarantor and (iv) any present or future security, registered security or other instrument which is issued by a Subsidiary of the Guarantor and guaranteed by the Guarantor or for which the Guarantor has otherwise assumed liability where the Guarantor's obligations under such guarantee or other assumptions of liability rank or are expressed to rank pari passu with any of the instruments described under (i), (ii) and (iii).

75 75 "Tochterunternehmen" bezeichnet jedes direkte oder mittelbare, mehrheitlich der Garantin gehörende Tochterunternehmen, das für die Zwecke der Erstellung des konsolidierten Jahresabschlusses der Garantin nach IFRS von der Garantin konsolidiert werden muss. "IFRS" bezeichnet die internationalen Rechnungslegungsstandards im Sinne der Verordnung (EG) Nr. 1606/2002 des Europäischen Parlaments und des Rates vom 19. Juli 2002 betreffend die Anwendung internationaler Rechnungslegungsstandards in der jeweils geltenden Fassung. (2) Aufrechnungsverbot. Die Gläubiger sind nicht berechtigt, Forderungen aus der Nachrangigen Garantie mit etwaigen gegen sie gerichteten Forderungen der Garantin aufzurechnen. Die Garantin ist nicht berechtigt, Forderungen gegenüber Gläubigern mit den Verpflichtungen aus der Nachrangigen Garantie aufzurechnen. "Subsidiary" means any directly or indirectly majority-owned subsidiary of the Guarantor that must be consolidated by the Guarantor for the purposes of preparing annual consolidated financial statements of the Guarantor under IFRS. "IFRS" means international accounting standards within the meaning of the Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards, as amended from time to time. (2) Prohibition of set-off. No Holder may set off any claims arising under the Subordinated Guarantee against claims that the Guarantor may have against it. The Guarantor may not set off any claims it may have against any Holder against any of its obligations under the Subordinated Guarantee. 3 BESTEUERUNG (1) Zusätzliche Beträge. Sämtliche auf die Nachrangige Garantie zu zahlenden Beträge sind ohne Einbehalt oder Abzug von oder aufgrund von gegenwärtigen oder zukünftigen Steuern oder sonstigen Abgaben gleich welcher Art zu leisten, die von oder in der Bundesrepublik Deutschland oder dem Großherzogtum Luxemburg oder für deren Rechnung oder von oder für Rechnung einer politischen Untergliederung oder Steuerbehörde der oder in der Bundesrepublik Deutschland oder dem Großherzogtum Luxemburg auferlegt oder erhoben werden, es sei denn, dieser Einbehalt oder Abzug ist gesetzlich vorgeschrieben. In diesem Fall wird die Garantin diejenigen zusätzlichen Beträge (die "Zusätzlichen Beträge") zahlen, die erforderlich sind, damit die den Gläubigern zufließenden Nettobeträge nach diesem Einbehalt oder Abzug jeweils den Beträgen entsprechen, die ohne einen solchen Einbehalt oder Abzug von den Gläubigern empfangen worden wären; die Verpflichtung zur Zahlung solcher Zusätzlichen Beträge besteht jedoch nicht im Hinblick auf Steuern und Abgaben, die: (a) von einer als Depotbank oder Inkassobeauftragter des Gläubigers handelnden Person oder sonst auf andere Weise zu entrichten sind als 3 TAXATION (1) Additional Amounts. All amounts payable in respect of the Subordinated Guarantee shall be made without withholding or deduction for or on account of any present or future taxes or duties of whatever nature imposed or levied by way of withholding or deduction by or on behalf of the Federal Republic of Germany or the Grand Duchy of Luxembourg or any political subdivision or any authority thereof or therein having power to tax unless the Guarantor is required by law to make such withholding or deduction. In such event, the Guarantor shall pay such additional amounts (the "Additional Amounts") as shall be necessary in order that the net amounts received by the Holders, after such withholding or deduction shall equal the respective amounts of principal and interest which would otherwise have been receivable in the absence of such withholding or deduction; except that no such Additional Amounts shall be payable on account of any taxes or duties which: (a) are payable by any person acting as custodian bank or collecting agent on behalf of a Holder, or otherwise in any manner which does not

76 76 dadurch, dass die Garantin aus den von ihr zu leistenden Zahlungen von Kapital oder Zinsen einen Abzug oder Einbehalt vornimmt; (b) wegen einer gegenwärtigen oder früheren persönlichen oder geschäftlichen Beziehung des Gläubigers zu Deutschland zu zahlen sind, und nicht allein deshalb, weil Zahlungen auf die Nachrangige Garantie aus Quellen in Deutschland stammen (oder für Zwecke der Besteuerung so behandelt werden) oder dort besichert sind; (c) aufgrund (i) einer Richtlinie oder Verordnung der Europäischen Union betreffend die Besteuerung von Zinserträgen oder (ii) einer zwischenstaatlichen Vereinbarung über deren Besteuerung, an der Deutschland oder die Europäische Union beteiligt ist, oder (iii) einer gesetzlichen Vorschrift, die diese Richtlinie, Verordnung oder Vereinbarung umsetzt oder befolgt, abzuziehen oder einzubehalten sind; (d) von einer Zahlstelle einbehalten oder abgezogen werden, wenn die Zahlung von einer anderen Zahlstelle ohne den Einbehalt oder Abzug hätte vorgenommen werden können; (e) wegen einer Rechtsänderung zu zahlen sind, welche später als 30 Tage nach Fälligkeit der betreffenden Zahlung von Kapital oder Zinsen oder, wenn dies später erfolgt, ordnungsgemäßer Bereitstellung aller fälligen Beträge und einer diesbezüglichen Bekanntmachung gemäß 12 wirksam wird; (f) durch die Erfüllung von gesetzlichen Anforderungen oder durch die Vorlage einer Nichtansässigkeitserklärung oder durch die sonstige Geltendmachung eines Anspruchs auf Befreiung gegenüber der betreffenden Steuerbehörde vermeidbar sind oder gewesen wären; (g) abgezogen oder einbehalten werden, weil der wirtschaftliche Eigentümer der Schuldverschreibungen nicht selbst (b) (c) (d) (e) (f) (g) constitute a deduction or withholding by the Guarantor from payments of principal or interest made by it; are payable by reason of the Holder having, or having had, some personal or business connection with the Federal Republic of Germany and not merely by reason of the fact that payments in respect of the Subordinated Guarantee are, or for purposes of taxation are deemed to be, derived from sources in, or are secured in, the Federal Republic of Germany; are withheld or deducted pursuant to (i) any European Union directive or regulation concerning the taxation of interest income, or (ii) any international treaty or understanding relating to such taxation and to which the Federal Republic of Germany or the European Union is a party, or (iii) any provision of law implementing, or complying with, or introduced to conform with, such Directive, Regulation, treaty or understanding; are withheld or deducted by a Paying Agent from a payment if the payment could have been made by another Paying Agent without such withholding or deduction; are payable by reason of a change in law that becomes effective more than 30 days after the relevant payment becomes due, or is duly provided for and notice thereof is published in accordance with 12, whichever occurs later; are avoidable or would have been avoidable through compliance with statutory requirements or through the submission of a declaration of non-residence or by otherwise enforcing a claim for exemption at the relevant tax authority; are deducted or withheld because the beneficial owner of the Notes is not itself their legal owner (Holder) and no deduction or withholding

77 77 (h) rechtlicher Eigentümer (Gläubiger) der Schuldverschreibungen ist und der Abzug oder Einbehalt bei Zahlungen an den wirtschaftlichen Eigentümer nicht erfolgt wäre oder eine Zahlung Zusätzlicher Beträge bei einer Zahlung an den wirtschaftlichen Eigentümer nach Maßgabe der vorstehenden Regelungen hätte vermieden werden können, wenn dieser zugleich rechtlicher Eigentümer (Gläubiger) der Schuldverschreibungen gewesen wäre; oder aufgrund der Vorschriften in Bezug auf Abschnitte des US Bundessteuergesetzes von 1986 ("Internal Revenue Code"), einer in Abschnitt 1471(b) des Internal Revenue Code beschriebenen Vereinbarung oder anderweitig aufgrund eines Gesetzes zur Umsetzung zwischenstaatlicher Vertragswerke in Bezug auf diese abgezogen oder einbehalten werden. (2) Andere Steuerrechtsordnung. Falls die Garantin zu irgendeinem Zeitpunkt einer anderen Steuerrechtsordnung als der gegenwärtig maßgeblichen Steuerrechtsordnung der Garantin oder einer zusätzlichen Steuerrechtsordnung unterworfen wird, sollen die Bezugnahmen in diesem 3 auf die Rechtsordnung der Garantin als Bezugnahmen auf die Rechtsordnung der Garantin und/oder diese anderen Rechtsordnungen gelesen und ausgelegt werden. (h) would have been made from payments to the beneficial owner, or payment of any Additional Amounts could have been avoided by making payment to the beneficial owner in accordance with the above provisions if such beneficial owner had also been the legal owner (Holder) of the Notes; or are deducted or withheld in respect of sections of the US Internal Revenue Code of 1986 ("Internal Revenue Code"), any agreements described in Section 1471(b) of the Internal Revenue Code, or under any law implementing an intergovernmental approach to any of the foregoing. (2) Other Tax Jurisdiction. If at any time the Guarantor becomes subject to any taxing jurisdiction other than, or in addition to, the currently relevant taxing jurisdiction of the Guarantor, references in this 3 to the jurisdiction of the Guarantor shall be read and construed as references to the jurisdiction of the Guarantor and/or to such other jurisdiction(s). 4 BESCHLÜSSE DER GLÄUBIGER ÄNDERUNGEN DER GARANTIE (1) Die Gläubiger der Schuldverschreibungen können durch Mehrheitsbeschluss gemäß 14 der Anleihebedingungen Änderungen dieser Nachrangigen Garantie im Hinblick auf die Schuldverschreibungen zustimmen. Eine Verpflichtung zur Leistung kann für die Gläubiger durch Mehrheitsbeschluss nicht begründet werden. (2) Mehrheitsbeschlüsse sind für alle Gläubiger der Schuldverschreibungen verbindlich. Ein Mehrheitsbeschluss der Gläubiger, der nicht gleiche Bedingungen für alle Gläubiger vorsieht, ist unwirksam, 4 RESOLUTIONS OF HOLDERS AND AMENDMENTS TO THE GUARANTEE (1) The Holders of the Notes may consent to amendments of this Subordinated Guarantee in respect of the Notes by majority resolution passed in accordance with 14 of the Terms and Conditions, provided that no obligation to make any payment or render any other performance shall be imposed on any Holder by majority resolution. (2) Majority resolutions shall be binding on all Holders of the Notes. Resolutions which do not provide for identical conditions for all Holders of the Notes are void, unless Holders who are disadvantaged have

78 78 es sei denn die benachteiligten Gläubiger stimmen ihrer Benachteiligung ausdrücklich zu. expressly consented to their being treated disadvantageously. 5 ANWENDBARES RECHT, GERICHTSSTAND, SPRACHE UND GERICHTLICHE GELTENDMACHUNG (1) Anwendbares Recht. Form und Inhalt dieser Nachrangigen Garantie sowie die Rechte und Pflichten der Gläubiger und der Garantin bestimmen sich in jeder Hinsicht nach dem Recht der Bundesrepublik Deutschland. (2) Gerichtsstand. Nicht ausschließlich zuständig für sämtliche im Zusammenhang mit dieser Nachrangigen Garantie entstehenden Klagen oder sonstige Verfahren ("Rechtsstreitigkeiten") ist das Landgericht Frankfurt am Main, Bundesrepublik Deutschland. (3) Originaltext der Nachrangigen Garantie. Das Original dieser Nachrangigen Garantie wird der HSBC Bank plc in ihrer Eigenschaft als Zahlstelle ausgehändigt und von dieser verwahrt. Die Zahlstelle handelt nicht als Beauftragter, Treuhänder oder in einer ähnlichen Eigenschaft für die Gläubiger. (4) Gläubiger als begünstigte Dritte. Diese Nachrangige Garantie stellt einen Vertrag zugunsten der Gläubiger als begünstigte Dritte im Sinne des 328 Abs. 1 BGB dar, der jedem Gläubiger das Recht gibt, die Garantin unmittelbar aus dieser Nachrangigen Garantie auf Erfüllung in Anspruch zu nehmen und Ansprüche aus dieser Nachrangigen Garantie unmittelbar gegen die Garantin durchzusetzen. (5) Sprache. Diese Nachrangige Garantie ist in deutscher Sprache abgefasst. Eine Übersetzung in die englische Sprache ist beigefügt. Der deutsche Text ist bindend und maßgeblich. Die Übersetzung in die englische Sprache ist unverbindlich. (6) Gerichtliche Geltendmachung. Jeder Gläubiger von Schuldverschreibungen ist berechtigt, in jedem Rechtsstreit gegen die Garantin oder in jedem Rechtsstreit, in dem der Gläubiger und die Garantin Partei sind, seine Rechte aus dieser Nachrangigen Garantie im eigenen Namen auf der Grundlage einer Kopie dieser 5 APPLICABLE LAW, PLACE OF JURISDICTION, LANGUAGE AND ENFORCEMENT (1) Applicable Law. This Subordinated Guarantee, with regard to both form and content, as well as all rights and obligations of the Holders and the Guarantor, shall in all respects be governed by the laws of the Federal Republic of Germany. (2) Submission to Jurisdiction. Place of Jurisdiction. The regional court (Landgericht) in Frankfurt am Main, Federal Republic of Germany, shall have non-exclusive jurisdiction for any action or other legal proceedings ("Proceedings") arising out of or in connection with this Subordinated Guarantee. (3) Original Text of Subordinated Guarantee. The original of this Subordinated Guarantee shall be delivered to, and kept by, HSBC Bank plc in its capacity as Paying Agent. The Paying Agent does not act as agent, fiduciary or in any other similar capacity for the Holders. (4) Holders Third Party Beneficiaries. This Subordinated Guarantee constitutes a contract for the benefit of the Holders from time to time as third party beneficiaries in accordance with 328(1) of the German Civil Code (Bürgerliches Gesetzbuch) giving rise to the right of each Holder to require performance of this Subordinated Guarantee directly from the Guarantor and to enforce this Subordinated Guarantee directly against the Guarantor. (5) Language. This Subordinated Guarantee is written in the German language and provided with an English language translation. The German version shall be the only legally binding version. The English language translation is provided for convenience only. (6) Enforcement. Any Holder of Notes may in any proceedings against the Guarantor, or to which such Holder and the Guarantor are parties, protect and enforce in his own name his rights arising under this Subordinated Guarantee on the basis of a copy of this Subordinated Guarantee certified by an authorised person of the

79 79 Nachrangigen Garantie, deren Übereinstimmung mit dem Original von einer dazu von der Zahlstelle ermächtigten Person bestätigt wurde, geltend zu machen, ohne dass eine Vorlage des Originals der Nachrangigen Garantie erforderlich wäre. Hamburg, 22. Januar 2015 Hamburg, 22 January 2015 VTG Aktiengesellschaft Paying Agent without presentation of the original Subordinated Guarantee. VTG Aktiengesellschaft durch: Name: Position: by: Name: Position: durch: Name: Position: by: Name: Position: Wir nehmen die Bedingungen der vorstehenden Nachrangigen Garantie ohne Obligo, Gewährleistung oder Haftung und ohne als Beauftragter, Treuhänder oder in einer ähnlichen Eigenschaft für einen Gläubiger zu handeln, an. We accept the terms of the above Guarantee without recourse, warranty or liability and without acting as agent, fiduciary or in any similar capacity for any Holder. London, 22. Januar 2015 London, 22 January 2015 HSBC Bank plc HSBC Bank plc durch: Name: Position: by: Name: Position: durch: Name: Position: by: Name: Position:

80 80 DESCRIPTION OF THE ISSUER General Information The Issuer was incorporated on 9 December 2014 under the laws of the Grand Duchy of Luxembourg as a Luxembourg private stock corporation (société anonyme). Its first fiscal year ends on 31 December Each following fiscal year will be the calendar year. The Issuer has its corporate seat in the City of Luxembourg, Grand Duchy of Luxembourg and is registered in the Registre de Commerce et des Sociétés, Luxembourg under number B The address of the Issuer's registered office is 2 Boulevard Konrad Adenauer, L-1115 Luxembourg, Grand Duchy of Luxembourg, telephone number: +352 (421) VTG Finance S.A. is the Issuer's legal and commercial name. Corporate Purpose Pursuant to Article 4 of the articles of association of the Issuer, the corporate purpose of the Issuer is: The object of the Issuer is the holding of participations, in any form whatsoever, in Luxembourg and foreign companies, or other entities or enterprises, the acquisition by purchase, subscription, or in any other manner as well as the transfer by sale, exchange or otherwise of stock, bonds, debentures, notes and other securities or rights of any kind including interests in partnerships, and the holding, acquisition, disposal, investment in any manner in, development, licensing or sub licensing of, any patents or other intellectual property rights of any nature or origin as well as the ownership, administration, development and management of its portfolio. The Issuer may carry out its business through branches in Luxembourg or abroad. The Issuer may borrow in any form and issue by private or public of bonds, convertible bonds and debentures or any other securities or instruments it deems fit. In a general fashion it may grant assistance (by way of loans, advances, guarantees or securities or otherwise) to companies or other enterprises in which the Issuer has an interest or which form part of the group of companies to which the Issuer belongs or any entity as the Issuer may deem fit (including upstream or cross stream), take any controlling, management, administrative and/or supervisory measures and carry out any operation which it may deem useful in the accomplishment and development of its purposes. The Issuer may provide financing, pooling, treasury or other services to companies or other enterprises in which the Issuer has an interest or which form part of the group of companies to which the Issuer belongs or any entity as the Issuer may deem fit and may employ any techniques and use any instruments relating to its investments or participations including techniques or instruments designed to provide credit, currency exchange, interest rate or any other risks. Finally, the Issuer can perform all commercial, technical and financial or other operations, connected directly or indirectly in all areas in order to facilitate the accomplishment of its purpose. Organizational Structure The Issuer is a wholly owned subsidiary of Rail Holdings Nederland C.V., a limited liability partnership established under the laws of The Netherlands. The Issuer does not have any subsidiaries of its own. The chart below shows the Issuer and its direct and indirect shareholders:

81 81 Management, Corporate Governance The current members of the Issuer's management board are as follows: Name Principal external activities Graeme Jenkins Banker Nahima Bared Banker Laurie Domecq Banker The members of the Issuer's management board may be contacted using the Issuer's business address: 2 Boulevard Konrad Adenauer, L-1115 Luxembourg, Grand Duchy of Luxembourg. There are no conflicts of interest or potential conflicts of interest between the obligations of the members of the Issuer's management board on the one hand, and their private interests or outside obligations on the other. Share Capital The issued capital of the Issuer amounts to 31,000, divided into 31,000 registered shares of common stock with a par value of one Euro ( 1.00) each, which are all held by Rail Holdings Nederland C.V. The capital is fully issued and paid-up. The authorized unissued share capital of the Issuer is equal to two million Euro ( 2,000,000) to be represented by two million (2,000,000) shares, each with a nominal value of one Euro ( 1.00). The authorized un-issued share capital (and any authorization granted to the board of directors in relation thereto) shall be valid from the date of incorporation until the fifth anniversary thereof. Investments The Issuer has made no material investments since the date of its incorporation and, as at the date of this Offering Circular, its management has made no firm commitments on such material investments in the future. Business Overview The Issuer acts as a financing company within VTG Group and currently has no relevant business or operational activities other than the financing of VTG Group. Because of the mere financing function of the Issuer, the Issuer currently does not have any markets in which it competes and, therefore, no statement can be made in respect of the Issuer regarding its competitive position. Legal Disputes There are currently no, and the Issuer has not been involved in any, governmental, legal or arbitration proceedings during the last twelve months, against or affecting the Issuer, nor is the Issuer aware of any pending or threatened proceedings, which (in either case) may have or have had in the recent past significant effects on the financial position or profitability or results of operations of the Issuer. Material Agreements The Issuer has not entered in any material contract in the ordinary course of its business, which could result in any VTG Group company (including the Issuer) being under an obligation or entitlement that is material to the ability of Issuer and/or VTG to fulfill the obligations under the Notes and the Subordinated Guarantee, respectively. Recent Developments Since the Issuer's incorporation, there are no recent events particular to the Issuer which would to a material extent be relevant to the evaluation of the solvency of the Issuer. Trend Information and Significant Changes There has been no material adverse change in the prospects of the Issuer since its incorporation and no significant change in the financial or trading position of since its incorporation. Auditors PricewaterhouseCoopers, société coopérative incorporated under Luxembourg law having its registered office at 2 rue Gerhard Mercator B.P. 1443, L-1014 Luxembourg, Grand Duchy of Luxembourg, has been appointed as auditor of the Issuer.

82 82 Selected Financial Information on the Issuer Since its incorporation, the Issuer has prepared no financial statements other than its opening balance sheet. For the end of each fiscal year the Issuer is obliged to prepare, financial statements. Its first fiscal year ends on 31 December Each following fiscal year will be the calendar year. The Issuer is not required to prepare and publish interim financial statements. Balance Sheet as at 9 December 2014 (expressed in EURO) ASSETS 9-Dec-2014 EUR Formation Expenses 1,608 Current assets Cash at bank, cash in postal cheques accounts, cheques and cash in hand 31,000 Total Assets 32,608 LIABILITIES Capital and reserves Subscribed capital 31,000 Non-subordinated debts Other creditors becoming due and payable within one year 1,608 Total Liabilities 32,608 PricewaterhouseCoopers, société coopérative incorporated under Luxembourg law having its registered office at 2 rue Gerhard Mercator B.P. 1443, L-1014 Luxembourg, Grand Duchy of Luxembourg has audited the opening balance sheet of the Issuer.

83 83 DESCRIPTION OF THE GUARANTOR AND VTG GROUP Incorporation, Registered Office, Corporate Purpose and Fiscal Year VTG Aktiengesellschaft is a stock corporation (Aktiengesellschaft) organised under the laws of Germany and is registered in the commercial register of the local court of Hamburg under HRB In its current form, VTG originated from VTG Vereinigte Tanklager und Transportmittel GmbH, which was founded as a stateowned enterprise in 1951 and privatized in 1961 in the framework of the sale to Preussag, now the TUI Group. The roots of VTG along with its subsidiaries extend as far back as the 19th century. After having belonged to the Preussag and TUI groups for almost 45 years, in 2005 VTG Group was acquired indirectly by various entities managed by W.L. Ross & Co. LLC. For the acquisition, these entities founded Compagnie Européenne de Wagons S.à r.l. Since 28 June 2007, VTG is listed in the prime standard of the Frankfurt Stock Exchange. VTG was established for an indefinite period. VTG's registered office is in Hamburg and its head office is at Nagelsweg 34, Hamburg, Germany, Tel VTG's legal name is VTG Aktiengesellschaft. In its business dealings, the company uses the name VTG. In accordance with Article 2 of the Articles of Association of VTG, VTG's corporate purpose is to manage a group of companies which is active in the area of leasing means of transportation, in particular rail wagons and tank containers as well as rail logistics, tank container logistics and forwarding business as well as of all other activities which are connected with the aforementioned matters; management of the group also comprises the provision of services to companies in the group. VTG's fiscal year is the calendar year. The following chart provides a brief overview of key milestones in VTG Group's history: VTG GROUP KEY MILESTONES Year Milestone 1951 Formation of VTG Vereinigte Tanklager and Transportmittel GmbH (state-owned enterprise) 1961 Privatization through acquisition of VTG GmbH via Preussag AG (now the TUI Group) 1981 Start of the first tank container activities 1992 Majority absorption of the Transpetrol GmbH in Germany (Start of Rail Logistics activities) 1994 Acquisition of a majority stake (65%) in Lehnkering Montan Transport AG Acquired stake in the WAGON HOLDING AG, Switzerland (TRANSWAGGON Group) 1997 Establishment of VOTG Tanktainer GmbH in Germany 1998 Consolidation of VTG GmbH and Lehnkering AG into VTG-Lehnkering AG 2002 Takeover of the European Rail Division of the Australian Brambles-Group Strengthening of VTG's presence in the Western European rail markets, in particular UK and Spain 2004 Increased the stake in Transpetrol GmbH Internationale Eisenbahnspedition to 74.9% Sale of Lehnkering business including Inland Waterway & Tank Terminal Division 2005 TUI sells VTG to CEW, a holding company whose controlling shares are held by

84 84 VTG GROUP KEY MILESTONES funds managed by WL Ross 2007 IPO of VTG AG on 28 June 2007 Takeover of 800 rail tank cars from Rexwal in Switzerland Establishment of Railtrans, a manager and marketer of 600 rail cars in France Acquisition of the UK tank container hire company, Tankspan Leasing, which has 3,100 tank containers Increase in stake in VOTG Tanktainer GmbH from 58% to 100% 2008 Entry into the North American rail freight market with the acquisition of the wagon hire company Texas Railcar Leasing, which had at that time 1,000 rail cars Joint venture with Cosco Logistics in China (Tank Container Logistics) Takeover of Waggonbau Graaff ("Graaff"), the wagon manufacturing division of the Graaff Group in Germany 2010 Takeover of 720 rail freight cars from Rexwal Takeover of 1,100 rail freight cars for grain transportation from Ermewa Acquisition of 100% stake in French rail logistics company TMF 2011 Takeover of 300 rail freight cars from Italian company Sogerent Entry into the Russian and CIS rail freight market. Takeover of the Finnish rail freight lessor Railcraft Group including 870 rail freight cars Acquisition of 2,500 rail freight cars in the United States from SC Rail Leasing America, a company owned by Japanese Sumitomo Corporation 2014 Merger of VTG's rail logistics activities with part of Kühne + Nagel's rail activities. VTG holds 70% and Kühne + Nagel 30% in the new company VTG Rail Logistics GmbH 2015 Acquisition of 100% of the wagon hire company AAE. With approximately 29,300 freight wagons, AAE Group is one of the largest lessors of railway freight wagons in Europe. Share Capital, Shares and Major Shareholders Share Capital As of 6 January 2015, VTG has a subscribed capital (Gezeichnetes Kapital) of 28,756,219. It is divided into 28,756,219 non-par value shares in bearer form. All shares are fully paid-up. On 6 January 2015, by partial utilisation of the Company's authorised capital, the share capital of VTG was increased from 21,388,889 by 7,367,330 to 28,756,219 (the "Capital Increase"). For this purpose, 7,367,330 new ordinary bearer shares (no-par value shares) (the "New Shares") were issued at the issue price of 1 to Mr Andreas Goer, former owner of AAE. Shares The non-par value shares, excluding the New Shares are admitted to trading on the regulated market segment (regulierter Markt) of the Frankfurt Stock Exchange. It is intended that, in the course of 2015, the New Shares will be admitted to the regulated market of the Frankfurt Stock Exchange and to the subsegment of the regulated market with additional obligations arising from admission of the Frankfurt Stock Exchange. The New Shares are to be subject to a lock-up for a period of 12 months after 5 January The Guarantor has neither issued any convertible debt securities, exchangeable debt securities or debt securities with warrants attached nor does the Guarantor or any company in which the Guarantor has a direct or indirect holding of more than 50% hold any of the Guarantor's shares.

85 85 Shareholders' Meeting A general shareholders' meeting of VTG may be convened by the Executive Board and, if so stipulated by law, by the Supervisory Board, or by shareholders whose aggregate shareholdings equal at least 5% of VTG's share capital. The annual shareholders' meeting which, among other things, formally resolves on the approval of the activities of the members of the Executive Board of the Guarantor (the "Executive Board") and the supervisory board of the Guarantor (the "Supervisory Board") in the preceding fiscal year, the allocation of net profits, and the election of members of the Supervisory Board, must be held during the first eight months of each fiscal year. When convening the shareholders' meeting the place at which it shall be held will be indicated. According to the articles of association, the shareholders' meetings are being held at the registered office of VTG in Hamburg, in a city in Germany which has more than 100,000 inhabitants or within 50 km of the registered office of VTG. Each (non-par value) share confers the right to one vote at a shareholders' meeting. Unless otherwise required by mandatory statutory provisions or by the Guarantor's articles of association, shareholders' resolutions are passed pursuant to the Guarantor's articles of association by a simple majority of votes cast and, if the majority of the share capital represented is required, by a simple majority of the share capital represented. Major Shareholders As of 12 January 2015 and according to latest information, VTG was aware of the following major shareholdings: Compagnie Européenne de Wagons S.à r.l., Luxembourg (directly and indirectly via CEW Germany GmbH) holds 43.84% of the share capital of VTG. It thus remains the major shareholder of VTG AG. This major shareholder has the backing of Wilbur L. Ross, Jr., a major U.S. investor with a long-term investment strategy. After implementation of the Capital Increase, Mr Andreas Goer holds 25.62% of the share capital of the Company. These major shareholders are pursuing the same goals as the management of VTG: responsible growth and strategic development. In VTG's assessment, the nature of these shareholdings gives VTG both the greatest possible room for maneuver and a secure foundation for developing the company. According to the latest information on voting rights received by VTG on 16 July 2014, Samara Capital L.P., Greenwich, Connecticut, US, holds 2.98% of VTG shares on this date. The remainder of the shares is in free float. Financial Liabilities and Contingent Liabilities of VTG Group As of 30 September 2014, VTG Group was financed by a US private placement, a syndicated loan and project financing. US private placement Original amount in currency of issue (in '000 except as otherwise indicated) As of 30 September 2014 (in '000) Tranche 1 170, ,000 Tranche 2 150, ,000 Tranche 3 130, ,000 Tranche 4 40,000 (in US$ '000) 31,666 Total 481,666 The tranches of the US private placement are fixed-interest.

86 86 Syndicated loan Original amount in currency of issue (in '000 except as otherwise indicated) As of 30 September 2014 (in '000) Tranche A1 20,000 (in GBP '000) 21,176 Tranche A2 77,570 63,995 Tranche B 350, ,000* Total 350,171 * thereof 60.0 million as guarantee. Tranche A1 was taken up by a company whose functional currency is Great British Pounds ("GBP"). The syndicated loan tranches comprise variable-interest loans, confirmed credit and guarantees. Project financings (in '000) Original amount in currency of issue Deichtor 39,153 26,721 Ferdinandstor 44,965 38,332 Klostertor 46,000 20,110 Total 85,163 As of 30 September 2014 In September 2014, VTG agreed an unsecured line of credit amounting to 75.0 million. As of 30 September 2014, there were no drawdowns from this credit facility. Please also refer to the section " Material Agreement" for additional information on the financing of VTG as well as the recently acquired AAE Group. As of 30 September 2014, VTG's total amount of other financial commitments amounts to k 243,553 including obligations from rental, leasehold and leasing agreements in the amount of k 155,978 and purchase commitments in the amount of k 87,575. Description of VTG Group's Business Activities The following section describes VTG Group's business activities excluding the business activities of the recently acquired AAE Group. Please refer to " Description of AAE Group's Business Activities" and "The AAE Acquisition" for information relating to the business activities of AAE Group and the AAE Acquisition. Overview According to its own assessment, VTG Group is one of Europe s leading wagon hire and rail logistics companies. VTG believes that it has the largest private railcar fleet in Europe. Globally, VTG's fleet consists of approximately 53,000 railcars, with a focus on tank cars and state-of-the-art high capacity freight cars and flat cars. In addition to the hiring of wagons, VTG Group offers comprehensive multi-modal logistics services, mainly around rail transport, and global tank container transports. With the combination of its three interlinked divisions Railcar, Rail Logistics and Tank Container Logistics, VTG Group aims to offer its customers a high-performance platform for international transport of their freight. VTG Group is of the opinion that it has many years of experience and specific expertise, in particular in the transport of liquid and sensitive goods. Its customers include numerous well-known companies from almost every industrial sector, for example the chemical, petroleum, automotive, paper and agricultural industries.

87 87 The Railcar Division is VTG Group's largest operating division, accounting for 42% of external revenue and 93% of VTG Group EBITDA 1 (Earnings before interest, taxes, depreciation and amortization) during the fiscal year ended 31 December 2013 (excluding reconciliation). These three divisions also form the operating segments for the purposes of segment reporting in accordance with the International Financial Reporting Standards (IFRS). The following chart provides a summary of VTG's three operating divisions (still excluding AAE Group), followed by a description of each. VTG Group has a network in approximately 60 countries but its business is conducted predominantly in Europe, which makes up the largest share of its revenues. The charts below show VTG Group's global footprint along with contributions from each region globally. 1 EBITDA and other Non-GAAP measures such as Adjusted Net Financial Debt are presented in this section of the Offering Circular because VTG Group believes that they are frequently used by securities analysts, investors and other interested parties in evaluating companies in VTG Group's industry. However, other companies may calculate EBITDA and the other Non-GAAP measures in a different manner than VTG Group does. VTG Group defines EBITDA as profit/loss for the period before income taxes, interest result and amortization, depreciation and impairments. EBITDA and the other Non-GAAP measures such as Adjusted Net Financial Debt used in this Offering Circular are not a measurement of performance under IFRS and investors should not consider them as an alternative to (a) profit for the period (as determined in accordance with IFRS) as a measure of VTG Group's operating performance, (b) cash flows from operating investing and financing activities as a measure of VTG Group's ability to meet its cash needs or (c) any other measures of performance under IFRS.

88 88 GLOBAL FOOTPRINT AND REGIONAL CONTRIBUTIONS TO REVENUES Global Footprint Revenues by Region Source: Company, figures as of 30 September The following chart shows the business model of VTG Group (excluding AAE Group) by looking at the development of key group figures. Railcar Division Overview This section provides an overview of VTG Group's Railcar Division excluding the wagon fleet of the recently acquired AAE Group which will be fully integrated into the Railcar Division. Please refer to " Description of AAE Group's Business Activities Overview" for information on AAE Group's fleet and the wagon segment of intermodal railcars. In the Railcar Division, VTG Group offers its customers, the hiring out of its own wagons, through its own sales and distribution network. In addition, VTG Group does the management and technical servicing for its own wagons and offers these services also for external wagon fleets. As of 30 September 2014 (and still excluding AAE Group's railcars), VTG Group markets in the Railcar Division a private fleet of approximately 53,000 rail freight cars, which consists of about 1,000 different

89 89 wagon types. In its own assessment, VTG Group thus possesses the largest private wagon fleet in Europe. The fleet has nearly every type of freight car, from tank cars to modern high-capacity wagons all the way to flat cars. Of these approximately 53,000 wagons used in its fleet, VTG Group owns around 77% as of 30 September As of 30 September 2014, around 16% come from private investors or rentals from third parties or are managed by pool partners, the remaining 7% are on operating lease (including less than 1% on finance lease). VTG Group has built its wagon fleet through new builds and the acquisitions of competing fleets. While VTG Group's fleet has grown, it was able to increase the share of its own wagons from 62% in 2006 to 77% as of 30 September 2014, as shown in the following chart (excluding AAE Group). WAGON FLEET BY OWNERSHIP AND TYPE* Ownership* Type of wagon* * Figures as of 30 September In recent years, VTG Group has consistently enlarged its wagon fleet. The main regional focus for further expansions of its activities is Europe, the USA and Russia. Furthermore, VTG Group has been able to maintain stable utilization rates of constantly more than 87% of its wagons. The average age of the fleet as of 30 September 2014 is around 23 years with useful life of more than 40 years and some even significantly longer. The following charts highlight the utilization rates and age structure of VTG Group's wagon fleet (excluding AAE Group's fleet).

90 90 RAILCAR DIVISION UTILIZATION RATES AND AGE STRUCTURE Wagon Numbers and Utilization Age Structure* * Figures as of 30 September In 2013 VTG Group implemented targeted fleet management measures. In anticipation of sideways movement in the economy, the Railcar Division assessed older wagons in particular for suitability for lease over the medium term, with unsuitable wagons being withdrawn from service. This led to additional withdrawals over and above those withdrawn as part of standard procedure. Thus, some 2,700 wagons were withdrawn from the fleet in the fiscal year Furthermore, in the Baltic states and elsewhere, the contracts for some wagons leased in from third parties were terminated. Altogether, this led to a net reduction in the fleet of 1,700 wagons, from approximately 54,400 wagons at the end of 2012 to approximately 52,700 wagons as of the end of the fiscal year As of 30 September 2014, VTG Group fleet (still excluding AAE Group's fleet) has slightly increased to 53,000 wagons. VTG Group maintains its own wagon construction plant and repair workshops allowing VTG Group to provide customized, exactly tailored solutions. At the construction plant and workshops, new wagons are built and existing ones are maintained or converted to meet special requirements. The wagon production site in Germany provides VTG Group with the opportunity to combine specific know how of designing and producing wagons and the position of a major hiring company. The maintenance workshops in France and Germany enable VTG to provide to their hiring customers equipment solutions including on-site, mobile and preventive maintenance. VTG believes that the integration of own construction and maintenance resources along with its core hiring activity puts VTG Group in a position to offer comprehensive and sustainable services for durable assets. Customers, Contracts and Regional Focus The following section describes VTG Group's customers, contracts and regional focus, still excluding the recently acquired AAE Group. Please refer to " Description of AAE Group's Business Activities Customers, Contracts and Regional Focus" below for a description of AAE Group's customers base and information on the regions in which AAE Group operates. Products of the Railcar Division are sold to large blue chip companies and a diverse customer base with over 1,000 customers. This customer base comprises some of the leading companies in the railways and logistics, chemicals, oil and gas, paper, automotive and building materials industries. In the Railcar Division, no single external customer represents more than 3% of total sales. The customer base is highly diversified with long historic relationships with most of them. In VTG Group's assessment, these long term relationships are a testament to the quality and reliability of the products and services offered by VTG Group.

91 91 The average contract length of VTG Group with its customers is around 3 years with an estimated renewal rate of 80-90%, primarily due to high switching costs and limited availability of specialized wagons. Furthermore, many of VTG Group's contracts are "evergreen", which are renewed routinely. The terms of the lease contracts are "take-and-pay" meaning lock in a fixed daily hire rate for the contract period, while payments have to be made according to the individually agreed billing period, e.g. month, quarter even if the wagons are not used. This means that the customer is bearing the utilization risk during the contract period. Contracts being longer than three years usually contain a pre-agreed price adjustment, a provision allowing VTG Group to re-negotiate prices with a view to increase prices in case key cost drivers (mainly maintenance cost) rise noticeably or certain COLA (Cost-of-living allowance) clauses pursuant to which prices may be adjusted under certain circumstances in accordance with the annual cost of living increase. For a major part of the Railcar Division, invoicing is effected at the beginning of the rental period with payments due within the respective invoiced rental period. Failure to pay can result in seizure of the wagons. Although VTG Group's customer base includes a substantial number of blue chip companies which benefit from an investment grade public debt rating. VTG Group utilizes vigilant credit control policies across its customer base. As a result of stringent credit controls and disciplined approach to credit management and collections, VTG Group has experienced a low degree of customer default. In both fiscal years 2013 and 2012, the amount of bad debts as a proportion of sales has been less than 0.01% in the Railcar Division. Despite extremely low customer delinquency rates, the inherent risk is covered by credit insurance (against insolvency and delay of payment). The following chart shows VTG Group's range of customers and its industry focus (excluding AAE Group's customer base): RAILCAR DIVISION CUSTOMERS AND INDUSTRY FOCUS* Customer Composition** Industry Focus * Figures as of 30 September ** Revenue split by customers. In its core market of Europe, the Railcar Division has a strong market position and holds the largest privately owned wagon fleet in Europe. In Europe, VTG Group sees continued good prospects for growth in the Railcar Division. Accordingly, one area of focus for the division was the expansion and modernization of the existing fleet with new-build wagons. By penetrating new customer segments in the industrial goods sector, in VTG Group's opinion the division also succeeded in broadening its customer base, reducing its dependence on certain industries. This goes along with the gain of market share from the today still dominating state-owned railway companies. Currently these companies hold approximately 70% of all railcars in Europe. Since their investment activities have been concentrated more on maintaining the infrastructure and on passenger transportation for a long time and because of the limited budgets, VTG Group is of the opinion that investments of the state-owned railway companies into their railcar fleets have been very low in the last couple of years. In VTG Group's opinion, this opens up good growth perspectives for the privately owned railcar keepers, gaining market shares of the state-owned railway companies outside the intermodal car business.

92 92 VTG Group generally sees promising opportunities for expanding its already existing business and generating additional growth in the North American rail freight market, which is the world's largest. In this particular market, the strategy is largely based on opportunities to make additional acquisitions and so expand the wagon fleet. In this regard, VTG Group's particular focus is on entry-level prices that yield the expected returns and on long-term hire contracts for the wagons acquired. Due to the current small size of the fleet and the existing portfolio of contracts, the risk to VTG Group is limited. In 2011, VTG Group commenced operations in the rail freight market of the Russian Federation and its neighboring countries. VTG Group should have good opportunities both to expand existing operations here and develop new ones. This is due to increasing levels of industrial production, the accompanying demand for high quality transport capacity, and the growing need for future replacements of wagons. Due to the small size of the fleet of approximately 1,100 wagons (as of 30 September 2014 and still excluding AAE Group), the risk to VTG Group in the markets of the Russian Federation and its neighboring countries can be regarded as minor. Financial Overview The charts below highlight the sales and EBITDA of VTG Group's Railcar Division over the last fiscal years (still excluding AAE Group). The division has maintained stable operating performance, with EBITDA margins around 50%. The Railcar Division is the core division of VTG Group representing 93% of VTG Group EBITDA in 2013 (excluding reconciliation). RAILCAR DIVISION HISTORICAL EXTERNAL REVENUE and EBITDA ( million) Rail Logistics Division This section provides an overview of VTG Group's Rail Logistics Division excluding the recently acquired AAE Group which is not active in the rail logistics market. Overview As a forwarder, the Rail Logistics Division organizes transports throughout Europe with the focus on the railway as a carrier. This involves the forwarding of mainly petroleum and chemical products and liquefied gases and, increasingly, bulk goods and general cargo. Goods are transported across Europe in full trains, block trains or single wagons. VTG Group collaborates with an extensive network of national and international haulage partners and plans, oversees and coordinates rail freight solutions across Europe: from freight and operational management of the involved railways, to international tracking, wagon deployment, and management of procurement and distribution traffic. Through collaboration with the Railcar Division and its large wagon fleet, VTG Group can respond flexibly to customers' needs and provide the right wagons even on short notice. VTG Group can utilize a wide network of national and international partners for the management of cargo flows and thus offer its customers further individual preliminary and subsequent services in addition to the transport of goods by rail. In the Company's

93 93 assessment, it is a great advantage that VTG Group has the wagon fleet of its own Railcar Division at its disposal, but can, if necessary, also hire wagons from third parties. Quality assurance standards are complied with meticulously, as confirmed by regular audits by independent bodies. In addition to ISO 9001 certification, VTG Group passed a Safety and Quality Assessment System ("SQAS") Rail audit of the European Chemical Industry Council with an excellent rating. The Company has also received the seal of quality of the Community of European Rail Forwarders. In VTG Group's assessment, these commendations act as a reliable everyday guide for customers. VTG Group has expanded the range of services it offers to include long-haul transport as well as added value services, such as tracking & tracing and transport management, and is striving to develop the relationships with its customers and also, in the future, to acquire new customer groups. At the end of September 2013, VTG and Kühne + Nagel signed an agreement to merge certain rail logistics operations. In VTG's opinion, the move cements their partnership and will create a rail logistics company boasting a Europe-wide network of centres and combining the expertise of two strong logistics providers. Customers will be able to benefit from the development of new transport concepts that, in VTG's opinion, show the way to the future. These will operate multimodally from northern Europe to the Bosphorus and from Western Europe to Russia. VTG Group expects that the collaboration of the two companies will strengthen the industrial goods segment in particular, which should lead to a marked rise in the volume of business. As major shareholder with a shareholding of 70%, VTG Group assumes operational control of the new company. As with the joint venture with the VTG subsidiary Transpetrol of more than 20 years standing, Kühne + Nagel will continue to collaborate closely with VTG as a partner. Following the approval of the antitrust authorities, the new company commenced operations on 1 January Customers VTG Group's customer base in the Rail Logistics Division mainly comprises companies from the chemical and mineral oil industry with which business relationships often go back many years. Customers frequently award orders by means of regular invitations to tender. Over the past few years, VTG Group has succeeded in winning customers from other industries, primarily with the range of freight forwarding services that it offers. The customer structure differs from that of the Railcar division in that respect that the ten key customers in the Rail Logistics Division account for 35% of revenue. VTG Group has a total of about 1,000 customers in this division. Financial Overview The following chart highlights Rail Logistics sales and EBITDA over the last fiscal years. While Rail Logistics' sales showed a comparatively stable development in recent years, EBITDA was negatively affected by several special effects, including the increased competition in the market segment petro chemistry and the costs for the realignment of the market segment agricultural goods. Furthermore, sales resulting from the combination of the rail logistic activities of VTG Group and Kühne + Nagel in the current year were significantly lower than expected, especially due to the conflict in Crimea. Together with the increased organizational costs, these factors recently had a significant impact on the results.

94 94 RAIL LOGISTICS HISTORICAL EXTERNAL REVENUE and EBITDA ( million) Tank Container Logistics Division This section provides an overview of VTG Group's Tank Container Logistics Division excluding the recently acquired AAE Group which is not active in the tank container logistics market. Overview The Tank Container Logistics Division organizes worldwide door-door-transports of liquid bulk products using tank containers. VTG Group has a fleet of approximately 10,700 tank containers as of 30 September 2014 at its disposal. Using these containers, goods can be forwarded in a multimodal manner by rail, road or sea, without the need to transfer the liquid goods themselves. The container as a whole is unloaded and reloaded along with the freight inside. Thus, tank containers offer a safe and efficient method of forwarding liquid and temperature-controlled products from the chemical, petroleum, and compressed gas industries. Liquid and sensitive goods in particular can be transported in a way that is environmentally safe, because hazards associated with reloading, such as, for example, mistakes in filling or transferring gases from one transport container to another, are minimized. Tank containers also generate lower trans-shipment or reloading costs, because it is not the cargo carried by tank container that requires trans-shipment or reloading but the container as a whole. VTG Group is one of the world's largest providers of logistics services for liquid bulk chemicals, offering a variety of different containers with a standardized ISO-design but with specialized features which meet the individual requirements of a huge number of products and particular grades. Transporting these goods demands compliance with the highest standards of precision. VTG Group already has many years of experience in this area, which requires a high degree of safety, reliability, and regulatory compliance. Due to the sensitive nature of the goods, the containers used are not only checked at regular maintenance intervals by independent experts, but also undergo technical inspections. Different carriers are used to transport goods around the world by tank container. Such global, intermodal logistics processes by their nature involve certain interfaces. Mastering and ensuring safety at these interfaces requires in-depth knowledge, including familiarity with both local and international regulations, their proper application, and careful selection of partners in the chain of transport. VTG Group aims to execute its tasks for the customer responsibly with smooth, safe workflows. The Tank Container Logistics Division has positioned itself in the Asian market with its subsidiary in Singapore, a wide network of agents in many countries and its joint venture Shanghai COSCO VOTG Tanktainer Co. Ltd in China. In VTG Group's assessment, this strategic orientation gives the division the opportunity to benefit, on the one hand, from the increasing flow of exports from and imports into the Chinese market and, on the other hand, to profit from the growing demand within China for logistical services

95 95 for domestic trade. In addition, Tank Container Logistics is well positioned to take advantage of the potential opportunities in the growth markets in eastern and southeastern Europe as well as in Latin America and in the traditional North American market. The strongly service-oriented approach and customized handling of transport needs is aimed to offer additional opportunities for increasing customer loyalty and attracting new customers. VTG Group's Tank Container Logistics Division has been successful in meeting the standards of SQAS Transport Services, a system of the European Chemical Industry Council (cefic) to evaluate the quality, safety, security and environmental performance of logistics service providers and chemical distributors. The Company combined this certification procedure with an audit by the Chemical Distribution Institute under its maritime packed cargo scheme (CDI-mpc). After 11 September 2001, VTG Group was one of the first Logistics Service Providers joining the C-TPAT program, enabling smooth operation in the U.S. and thus, being approved by all major customers for exports from and imports to the U.S. Since then, VTG Group has successfully performed various re-certification audits executed by the authorities. With these certifications, VTG Group is strengthening its process-oriented quality and safety management procedures. Customers VTG Group's customers in the Tank Container Logistics Division include many of the major companies in the chemical industry. In 2013, the Tank Container Logistics Division had a total of about 150 customers, with the ten key customers accounting for 60% of the division's revenue. The largest single customer generated 25% of the division's revenue. Financial Overview The charts below highlight Tank Container Logistics sales and EBITDA over the last fiscal years. In the recent past, the market in the Tank Container Logistics Division was characterized by worldwide overcapacities. Therefore, the Tank Container Logistics Division was subject to increased price competition which is reflected in declining sales and EBITDA developments. Furthermore, the weaker economy in Asia led to reduced transport volumes. Nevertheless, the Tank Container Logistics Division was able to stabilize the EBITDA development most recently. TANK CONTAINER LOGISTICS HISTORICAL EXTERNAL REVENUE and EBITDA ( million) Description of AAE Group's Business Activities Overview With the acquisition of AAE, the business activities of VTG Group gained a stronger focus on the wagon hire business, adding the new market segment of intermodal wagons. The business operations of AAE Group have their primary focus on the lease of standardised intermodal wagons in Europe, including, at the election of the customer, a complete range of additional services including the management of maintenance and

96 96 revision services, provision of spare parts and regulatory compliance. AAE Group has currently more than 130 customers in 22 different countries. With approximately 29,300 freight cars, AAE Group is one of the largest freight railcar leasing companies in Europe and, in the Company's own assessment, market leader for freight cars in intermodal transport. With AAE Group's business, VTG strives to make environmentally friendly rail transport increasingly economically viable and efficient. In addition to its basic lease concept, AAE Group has built up a European network of workshops and developed full-service solutions. As of 6 January 2015, AAE Group forms part of VTG Group's Railcar Division adding the new wagon segment of intermodal railcars to the integrated VTG Group fleet. Stand-alone AAE Group's fleet consists of approximately 29,300 railcars including approximately 15,000 railcars for intermodal transport. "Combined" or "intermodal" transportation refers to all forwarding and transport operations which involve the same loading units, e.g. containers, by rail combined with other modes of transport. AAE Group leases approximately 2,000 wagons into the Russian rail market via its 57% participation in the Russian Vagonpark Group. These 2,000 railcars consist of gravity discharge freight wagons, open freight wagons, flat wagons and tank wagons for mineral oil products and liquid petroleum gas. Through AAE Group's 50% participation in the Slovakian wagon hire company AXBenet approximately 3,300 railcars are marketed in Southeast Europe, comprising mainly standard freight wagons. AAE Group's fleet has an average age of approximately 15 years. After the AAE Acquisition, VTG Group (including AAE Group) has a railcar fleet of in total approximately 83,000 railcars. The chart below provides an overview of VTG Group's headcount and fleet structure after the AAE Acquisition. Customers, Contract and Regional Focus With its focus on intermodal wagons, AAE Group's regional and portfolio split is as follows:

97 97 The market for intermodal wagons is shaped differently than the market for other railcars set out above (see " Description of VTG Group's Business Activities Railcar Division Customers, Contracts and Regional Focus"). In this sector the main customer groups are railway undertakings (Eisenbahnverkehrsunternehmen) and operators. Since there are significantly larger but also fewer customers in the market, single customers naturally account for a higher percentage of sales. In total, AAE Group's top 10 customers account for roughly 54% of sales in the fiscal years 2013, 2012 and AAE Group serves more than 130 active customers, with its biggest customers being railway undertakings and intermodal transport operators (KV- Operateure). The renewal rate for customer contracts is above 80 %. More than 62% of the leased railcars are leased under so called "dry-lease" agreements (i.e. the customer is responsible for the provision and costs of daily maintenance). The chart below shows the wagon hiring model and the customer focus of VTG Group and AAE Group, respectively:

98 98 Competition Railcar Division VTG Group enjoys a leading market share and has the largest privately owned wagon fleet in Europe. In European wagon hire, VTG Group's overall market share (including AAE Group) is approximately 11%. Following the acquisition of AAE, the main private competitors of VTG Group's Railcar Divisions are Groupe Ermewa S.A. ("Ermewa") and GATX Corporation ("GATX"). Management believes that the scale of VTG Group's fleet (including AAE Group) would be difficult for competitors to replicate. Developing a comparably sized wagon hire business would be challenging due to the specialized expertise required, limited production capacities for new wagons and the importance of long established customer relationships. Prior to the AAE Acquisition, over 60% of VTG Group's wagon fleet consisted of rail tank wagons, which are generally short in supply. The resulting high utilization rate translated into stable revenue and cashflows for VTG Group. Wagon hire customers often require its major suppliers to offer a large-scale and diverse fleet of wagons, a European presence and sophisticated fleet management systems - all of which are difficult and timeconsuming to establish. VTG Group has invested heavily over many years to develop these competitive strengths, which have solidified its reputation and position as the market leader. State-owned companies usually only offer transport services but are not active in the wagon-hire business. Prior to the AAE Acquisition, standalone AAE Group had a market share of approximately 18% on the segment for the rental of dry cargo wagons by private leasing companies, followed by VTG (including Transwaggon) with 13.5% and Touax with 3.8%. Not only traditional rail leasing companies are offering wagons out for rent. Also private operators and state railroads place their unemployed wagons in the market. Due to the size of its fleet, AAE can offer high flexibility to its customers. Other smaller competitors are for example Wascosa, Nacco and GATX. In VTG's assessment, AAE is one of the most important lessors of intermodal wagons with a market share of 22.8% (approximately 15,400 units, excluding AX Benet). AAE Group's standard fleet is, in VTG's own assessment, optimal to complete the intermodal fleet and to diversify VTG Group's business. With a wide range of standard wagons VTG expects that flexibility is guaranteed and covers a broad transport market (e.g. steel, wood, bulk (coal), building materials, and vehicles). AAE Group (including AX Benet) owns a standard railcar fleet of approximately 11,400 units and VTG a fleet of 8,800 units (19,200 units including Transwaggon). The following chart illustrates the split of the European wagon fleet.

99 99 Rail Logistics and Tank Container Logistics Divisions According to VTG Group's own estimate, VTG Group is one of the largest private rail freight forwarders in Europe and operates one of the continent's largest tank container fleets. In the Rail Logistics Division, VTG Group is competing with railway forwarding companies that market their services through railway undertakings with which they are closely aligned (i.e. state-owned railway undertakings or their successors as well as private railway undertakings). There is intense pressure on competition and prices among logistics providers in the Rail Logistics Division. In the opinion of the Company, the markets in which the Tank Container Logistics Division operates, the global markets for tank containers, are highly fragmented due to the diversity of the services offered by the many local, regional, and global providers of tank container services. Objectives and Strategy Four-pronged strategy focusing on sustainable, profitable growth VTG Group, with its three operating divisions, in VTG Group's opinion, embarked on a successful path of growth in recent years that was the result of many closely linked factors. Essentially, these factors are rooted in VTG Group's strategic objectives, measures and corporate principles. The company's strategic approach is based on long-term, forward-looking investment and finance policies in line with its business model. In VTG Group's assessment, the foundation for further growth was laid in May 2011, with a solid combination of long-term core financing and medium-term growth financing. In 2013, VTG Group primarily focused on completing orders for the construction of new wagons and expanding the cooperative arrangement between VTG Group and Kühne + Nagel. To ensure long-term success in all three operating divisions, VTG Group is pursuing a four-pronged strategy focused on sustainable, profitable growth. Growth of wagon fleet in existing markets In its European core market, VTG Group is working to further consolidate its position as the leading provider of tank cars and freight cars for transporting liquids and industrial goods by rail. In the process, it intends to make judicious use of its available financial flexibility in order to continue expanding its market position in Europe while expanding its customer base by diversifying into new segments (e.g. the intermodal segment with the AAE Acquisition). On the one hand, this will entail acquiring used fleets. On the other hand, the European fleet will be modernized and further expanded by building new wagons. Thus, around 3,500 new wagons were delivered to customers of VTG Group in the last three years. Along with expanding and diversifying the wagon fleet, another focus is expansion of the portfolio of services. VTG Group's maintenance workshops and its own platform for innovation, the Graaff wagon construction plant, provide support in achieving this strategic aim. Here, VTG Group is able to respond to customer requests for specialized wagon types. One recent example is the cooperation with Chart Ferox in building the first prototypes for the economical and safe transportation of liquefied natural gas (LNG). Growth of wagon fleet in new regions Outside of its core European market, VTG Group is concentrating mainly on two other regions. Here, the long-term focus is on continually expanding business in the markets of North America and the Russian Federation and its neighbors. North America in particular, as the world's largest rail freight market, offers VTG Group attractive opportunities for growth. Having successfully gained a foothold in North America, VTG Group is now systematically expanding its wagon fleet in that market. By acquiring approximately 350 bulk goods wagons for livestock feed in December 2013, it further diversified and reduced the age of its U.S. fleet. VTG Group will also be watching the North American market carefully and seizing opportunities to push its U.S. fleet into five figures from the current level of approximately 4,000 wagons. In addition, the broadgauge rail network of Russia and its neighbors also offers good prospects for growth. The long distances and the abundance of raw materials in the region also favor the railway, and indeed it is the world's secondlargest rail freight market. Following the successful integration of the Railcraft group of companies, VTG Group managed to add 150 new Russian-built mineral oil wagons to its fleet in this market in Another 350 railcars were added until July All of these new-builds have been hired out. Despite the current political situation, VTG Group still sees Russia as a promising market. On the other hand, with uncertainties increasing lately, investments are made carefully. Moreover, VTG Group is carefully scrutinizing new regions in which it is not yet operational and which offer promising opportunities for growth. Expansion and reinforcement of logistics divisions In addition to expanding its Railcar Division, VTG Group also plans to further expand and reinforce both of its logistics divisions. Rail Logistics is currently in the process of realigning its business model. In the fiscal year 2013, the division's strategic focus was on expanding the cooperative arrangement between VTG Group and

100 100 Kühne + Nagel. After receiving approval from the anti-trust authorities, the new company began operating on 1 January On the one hand, the combined Rail Logistics businesses will significantly strengthen the industrial goods segment. Furthermore, it will give Rail Logistics a Europe-wide network of locations, enabling it to offer truly intermodal transport solutions from Northern Europe to the Bosporus and from Western Europe to Russia. In addition, the company worked on new transport concepts and solutions in all market segments during the fiscal year 2013 to ensure that in the future it will be able to exploit the full potential offered by the structural growth in cross-border rail freight traffic. In 2013, the Tank Container Logistics Division continued to pursue its strategy of expanding cooperation with select strategic customers. Here, maintaining margins was more important than simply expanding transport volume. In addition, the division continued in 2013 to focus on the requirements of its constantly changing markets in order to adjust to volatile flows of goods and ever more complex global market structures. During 2013, a particular focus of VTG Group's strategic work was on collaborating to develop a new branch network that assumed control of transport streams for a core product division of the Bayer Chemical Group in the spring of Further work on developing the organization and optimizing processes The fourth part of VTG Group's strategy focuses on continual organizational development and optimization of processes. The strong expansion in the wagon hire business through the various acquisitions in different regions of recent years and the combination of the Rail Logistics businesses of VTG Group and Kühne + Nagel, in VTG Group's opinion represent major progress for VTG Group on its path toward growth. For VTG Group, though, this development simultaneously means that demands for process quality and efficiency have increased, placing greater focus on the strategic goal of further developing the organization and optimizing processes. VTG Group is continuing existing projects and initiating new projects designed to accomplish this goal. For example, further work was done on the Wamos! IT landscape in the fiscal year This operating software, which was developed in-house, is being rolled out gradually in the Railcar Division in Europe and ultimately will replace its predecessor. In addition, in 2013, a project was initiated that, on the one hand, will enable the divisions to collaborate even more closely with each other, and on the other hand will bring VTG Group closer together, creating a more integrated VTG Group. The goal here is to further develop VTG Group's business while enhancing the performance of VTG Group on a sustainable basis. Effects of the AAE Acquisition With the AAE Acquisition, VTG Group is, in its own assessment, entering and establishing a leading position in the leasing of wagons for intermodal transportation and is thus increasing its exposure to the railway undertakings (Eisenbahnverkehrsunternehmen) sector. VTG Group expects that AAE's strength in the marketing of freight wagons will offer VTG Group an opportunity to gain access to specific additional market know-how as well as technical know-how regarding the maintenance of high mileage railcars. VTG Group also aims to strengthen through the AAE Acquisition its market position in Southeast Europe and Poland. In these regional markets VTG Group is currently only engaged in the market of leasing tank wagons. Group Companies and Corporate Investments The following chart provides an overview of the consolidated subsidiaries held by VTG, both directly and indirectly as of the date of this Offering Circular:

101

102 Company Registered office Share Capital (in %)* A.Consolidated affiliated companies AAE Ahaus Alstätter Eisenbahn Holding AG** Baar, Switzerland AAE Ahaus Alstätter Eisenbahn AG** Baar, Switzerland 100 AAE Ahaus Alstätter Eisenbahn Capital AG** Baar, Switzerland AAE Ahaus Alstätter Eisenbahn Cargo AG** Baar, Switzerland 100 AAE Ahaus Alstätter Eisenbahn Transport AG** Baar, Switzerland AAE Freightcar S.à r.l.** Kroll, Luxembourg 100 AAE RAILCAR SARL** Kroll, Luxembourg 100 AAE RaiLease S.à r.l.** Kroll, Luxembourg 100 AAE RailFleet S.à r.l.** Kroll, Luxembourg 100 AAE WAGON S.à r.l.** Kroll, Luxembourg 100 AAE WAGON FINANCE S.A.** Kroll, Luxembourg 100 AAE Slovensko s.r.o.** Bratislava, Slovakia 100 Ahaus Alstätter Eisenbahn GmbH** Ahaus 100 Alstertor Rail UK Limited Birmingham, United Kingdom 100 Ateliers de Joigny S.A.S. Joigny, France 100 Bräunert Eisenbahnverkehr GmbH und Co KG Albisheim ) Bräunert Verwaltungs GmbH Albisheim 100 1) CAIB Benelux BVBA Berchem/Antwerpen, Belgium 100 CAIB Rail Holdings Limited Birmingham, United Kingdom 100 CAIB UK Limited Birmingham, United Kingdom 100 Deichtor Rail GmbH Garlstorf 100 Eisenbahn-Verkehrsmittel GmbH & Co. KG für Transport und Lagerung Hamburg Etablissements Henri Loyez S.A.S Libercourt, France 100 EURO FREIGHT CAR FINANCE S.A.** Kroll, Luxembourg 100 Ferdinandstor Rail GmbH Garlstorf ) GALBANUM TRADE & INVEST LIMITED** Limassol, Cyprus 100 5) Klostertor Rail GmbH Garlstorf 100 OOO AAE** Moscow, Russia 100 OOO Leasing Company Vagonpark** Mordovia, Russia 100 OOO Railcraft Service Moscow, Russia 100 OOO Rental Company Vagonpark** Moscow, Russia 100 OOO VTG Moscow, Russia 100 Ortanio Holdings Limited** Tortola, British Virgin Islands 57.23

103 103 Company Registered office Share Capital (in %)* Railcraft Oy Helsinki, Finland 100 Railcraft Service Oy Helsinki, Finland 100 Rail Holdings Nederland C.V. Rotterdam, Netherlands STURGESS HOLDINGS LIMITED** Nicosia, Cyprus 100 Transpetrol GmbH Internationale 100 1) Eisenbahnspedition Hamburg Transpetrol Sp.zo.o. Chorzów, Poland 100 1) Vostok Beteiligungs GmbH Hamburg 100 Vostok 2 GmbH Hamburg ) VOTG Tanktainer Gesellschaft mit 100 beschränkter Haftung Hamburg VTG Austria Ges.m.b.H. Vienna, Austria 100 VTG Benelux B.V. Rotterdam, Netherlands 100 VTG Deutschland GmbH Hamburg 100 4) VTG Finance S.A. Luxembourg, Luxembourg 100 7) VTG France S.A.S. Paris, France 100 VTG ITALIA S.r.l. Milan, Italy 100 VTG Nakliyat Lojistik Kiralama Limited 100 Sirketi Istanbul, Turkey VTG Nederland B.V. Rotterdam, Netherlands 100 VTG North America, Inc. Hinsdale, Illinois, USA 100 VTG RAIL ESPANA S.L. Madrid, Spain 100 VTG Rail, Inc. Edwardsville, Illinois, USA 100 VTG Rail Logistics Austria GmbH Vienna, Austria 100 1) VTG Rail Logistics Benelux N.V. Ghent, Belgium 100 1) VTG Rail Logistics Deutschland GmbH Hamburg 100 1) VTG Rail Logistics France S.A.S. Paris, France 100 3) VTG Rail Logistics GmbH Hamburg 70 VTG Rail Logistics Hellas EPE Thessaloniki, Greece 100 1) VTG Rail Logistics Hungaria Kft. Budapest, Hungary 100 1) "VTG Rail Logistics" LLC Moscow, Russia 100 1) VTG Rail Logistics s.r.o. Prague, Czech Republic 100 1) LLC "VTG Rail Logistics Ukraine" Kiev, Ukraine 100 1) VTG Rail UK Limited Birmingham, United Kingdom 100 VTG Schweiz GmbH Basel, Switzerland 100 VTG Tanktainer Assets GmbH Hamburg 100 4) VTG Tanktainer Logistics GmbH Hamburg 100 4) VTG Vereinigte Tanklager und Transportmittel Gesellschaft mit beschränkter Haftung Hamburg 100 4)

104 104 Company Registered office Share Capital (in %)* Waggonbau Graaff GmbH Elze 100 Waggonservice Brühl GmbH Wesseling 100 2) Waggonwerk Brühl GmbH Wesseling 100 2) B. At equity consolidated companies AXBENET s.r.o.** Trnava, Slovakia 50 Shanghai COSCO VOTG Tanktainer Co.Ltd. Shanghai, China 50 Waggon Holding AG Zug, Switzerland 50 * As of 30 September 2014 (except as otherwise indicated and except for VTG Finance S.A., VTG Nederland B.V. and Rail Holdings Nederland C.V.). ** As of 6 January ) Held by VTG Rail Logistics Deutschland GmbH. 2) Held by Eisenbahn-Verkehrsmittel GmbH & Co. KG für Transport und Lagerung. 3) 55.8% held by VTG Rail Logistics Deutschland GmbH and 44.2% by VTG France S.A.S. 4) Profit and loss transfer agreement with the parent company. 5) GALBANUM TRADE & INVEST LIMITED is controlled and beneficially owned to 100% by Ortanio Holdings Limited. 6) 0.4% held by Vereinigte Tanklager und Transportmittel Gesellschaft mit beschränkter Haftung. 7) Held by Rail Holdings Nederland C.V. Employees Overview In the first nine months of the fiscal year 2014, VTG Group (excluding AAE Group) employed an average number of 1,306 employees, almost equaling the level of the previous year. Of these, 890 were employed in Germany (previous fiscal year (i.e. full year 2013): 838) and 416 in other countries (previous fiscal year (i.e. full year 2013): 349). The average number of wage-earning staff (blue-collar workers) stood at 354 (previous fiscal year (i.e. full year 2013): 343), almost all of whom were employed in the repair and manufacturing facilities. The average number of salaried employees (white-collar workers) was 909 (previous fiscal year (i.e. full year 2013): 799). Additionally, VTG Group (excluding AAE Group) employed an average number of 43 trainees in the first nine months of the fiscal year 2014 (previous fiscal year (i.e. full year 2013): 45 trainees). As of 31 December 2014, AAE Group employed 135 people. Participation of VTG Deutschland GmbH in VBL For historical reasons, VTG Deutschland GmbH is the only company in VTG Group that participates in the Pension Institution of the Federal Republic and the States (Versorgungsanstalt des Bundes und der Länder: "VBL"). VBL is the largest public supplementary pension fund, providing insured employees with additional social security protection financed by compulsory contributions from employers and employees. VTG Deutschland GmbH may terminate its participation in VBL with a period of notice, and VBL is entitled to terminate VTG Deutschland GmbH's participation for cause if particular circumstances arise. For instance, VBL is entitled to terminate VTG Deutschland GmbH's participation if a substantial number of employees of VTG Deutschland GmbH, who have compulsory insurance with VBL, are transferred to a new company that does not participate in the VBL, even as a

105 105 result of internal group restructuring (see "Risk Factors VTG Deutschland GmbH is a participant in the Pension Institution of the Federal Republic and the States (Versorgungsanstalt des Bundes und der Länder). If the participation in the Versorgungsanstalt des Bundes und der Länder is terminated, this could lead to considerable payment obligations and subsequently to restructuring obstacles within VTG Group."). Moreover, VBL can terminate VTG Deutschland GmbH's participation if VTG Deutschland GmbH neglects to sign up new employees to VBL for compulsory insurance. In the event of termination of VTG Deutschland GmbH's participation in VBL, compensation amounting to a mid-range double-digit million figure is to be paid by VTG Deutschland GmbH to VBL for current and former employees, to cover the accrued pension rights funded by VBL. Under its current participation relationship with VBL, VTG Deutschland GmbH is liable to pay, in addition to regular contributions, VBL an annual restructuring payment ("Sanierungsgeld"), which is recalculated each year on an individual company basis in accordance with a computational formula last amended in the course of a change of the VBL statutes that came into effect on 1 January In view of considerable additional payments coming along with that revised computational basis, VTG Deutschland GmbH since then has successfully been filing hardship case applications on an annual basis in order to limit the restructuring payments. If in the future VBL turns the hardship case applications down, VTG Deutschland GmbH would be obliged to pay considerably higher restructuring payments as compared to the past. Material Agreements Syndicated Credit Facilities Agreement On 28 April 2011 VTG Deutschland GmbH, a wholly-owned subsidiary of VTG, and certain of its subsidiaries as borrowers entered into a 427,570,000 and 20,000,000 syndicated credit facilities agreement (the "Syndicated Credit Facilities Agreement") with Commerzbank Aktiengesellschaft, Deutsche Bank AG and UniCredit Bank AG as mandated lead arrangers, certain financial institutions as original lenders, Deutsche Bank Luxembourg S.A. as facility agent and UniCredit Bank AG, London Branch, as security agent. Under the Syndicated Credit Facilities Agreement the lenders made available to VTG Deutschland GmbH and the other borrowers a dual currency term loan facility consisting of two tranches in the amount of 77,570,000 and 20,000,000, respectively, and a revolving credit facility in an amount of 350,000,000. The term loan facility has been utilised to repay certain existing financial indebtedness and for general corporate purposes and is no longer available for drawing. The proceeds from the revolving credit facility may be used for general corporate purposes and working capital requirements, including capital expenditure and the funding of acquisitions of other companies permitted by the terms of the Syndicated Credit Facilities Agreement. The final maturity date for both facilities is 28 April The amounts outstanding under the term loan facility must be repaid in semi-annual instalments in an amount equal to 2.5% of the total loan amount that has been made available under the term loan facility at the end of the availability period for such facility. The first semi-annual instalment became due on 30 June In addition, the Syndicated Credit Facilities Agreement provides for certain mandatory prepayment events such as illegality and the occurrence of a change of control with respect to VTG. Pursuant to the terms of the Syndicated Credit Facilities Agreement a change of control occurs with respect to VTG if a person or group of persons acting in concert (other than W.L. Ross or any of its affiliated companies) acquires directly or indirectly more than 50% of the voting shares in VTG. The interest rate on each loan made available under the Syndicated Credit Facilities Agreement is the percentage rate per annum which is equal to the sum of (i) the applicable margin at any time, (ii) EURIBOR (or, in the case of loans drawn in GBP, LIBOR) for the relevant interest period and (iii) mandatory costs (if any). The applicable margin for each of the facilities may be reduced or increased depending on whether the leverage ratio (being the ratio between the consolidated net debt of VTG Group and the adjusted consolidated EBITDA of VTG Group) decreases or increases, respectively. The obligations of VTG Deutschland GmbH and the other borrowers under the Syndicated Credit Facilities Agreement are guaranteed by VTG and certain other members of VTG Group, including, without limitation, VTG Vereinigte Tanklager und Transportmittel GmbH (Germany), Eisenbahn- Verkehrsmittel GmbH & Co. KG (Germany), VTG Rail UK Limited (United Kingdom), VTG France S.A.S. (France), VTG Schweiz GmbH (Switzerland), VTG RAIL ESPANA S.L. (Spain) and VTG Austria Ges.m.b.H. (Austria). VTG Tanktainer Logistics GmbH (Germany) and VTG Tanktainer

106 106 Assets GmbH (Germany) have subsequently acceded to the Syndicated Credit Facilities Agreement as additional guarantors. The obligations of VTG Deutschland GmbH and the other borrowers under the Syndicated Credit Facilities Agreement are also secured by certain collateral over the shares in certain members of VTG Group, railcars and other rolling stock (e.g. tank containers) owned by the members of VTG Group which are borrowers and/or guarantors under the Syndicated Credit Facilities Agreement and receivables arising from leasing agreements and/or management agreements relating to such rolling stock (collectively, the "Collateral"). Pursuant to the terms of the security agency agreement dated 29 April 2011 (the "Security Agency Agreement") the Collateral also serves to secure on a pari passu basis the obligations of VTG Deutschland GmbH and certain other members of VTG Group under the USPP Notes (as defined below). Pursuant to the terms of the Syndicated Credit Facilities Agreement VTG is obliged to ensure compliance with certain financial covenants. The financial covenants include an interest cover test pursuant to which the interest cover ratio (being the ratio between the consolidated EBITDA of VTG Group and the consolidated net interest expenses of VTG Group) must not be less than 3:1 as well as a leverage covenant test pursuant to which the leverage ratio (being the ratio between the consolidated net debt of VTG Group and the adjusted consolidated EBITDA of VTG Group) must not exceed 5.25:1. In addition, the Syndicated Credit Facilities Agreement requires VTG to ensure that the ratio of (i) the sum of (x) the amount of indebtedness secured by the Collateral and (y) the amount of other (secured or unsecured) indebtedness owed by members of VTG Group which are borrowers and/or guarantors under the Syndicated Credit Facilities Agreement (but excluding VTG and VTG Deutschland GmbH) to (ii) the collateral value of the rolling stock forming part of the Collateral does not exceed 85% (the "Asset Cover Test"). For the purpose of testing compliance with such Asset Cover Test the collateral value of the rolling stock forming part of the Collateral is determined as the lesser of (i) the market value of the rolling stock forming part of the Collateral as evidenced by the most recent appraisal report delivered by VTG to the Security Agent and (ii) the book value of such rolling stock. The Syndicated Credit Facilities Agreement also contains a number of general undertakings. For example, certain undertakings limit the ability of certain members of VTG Group to incur additional indebtedness or to grant security over their respective assets. In particular, the members of VTG Group which are borrowers and/or guarantors under the Syndicated Credit Facilities Agreement (other than VTG and VTG Deutschland GmbH) are (save for certain specific exceptions) not permitted to incur additional indebtedness if the amount of such additional indebtedness would exceed 15% of the book value of the total tangible assets of such members of VTG Group. Furthermore, no member of VTG Group may acquire another company or business (whether by way of a share deal or by way of an asset deal) unless the aggregate purchase price or consideration for all such acquisitions in any final year does not exceed certain threshold amounts. In addition, the Syndicated Credit Facilities Agreement provides for representations and warranties, information undertakings and events of default (which give the majority lenders the right to accelerate all amounts outstanding under the Syndicated Credit Facilities Agreement) which are customary for financings of this kind. USPP Notes Pursuant to a note purchase Agreement dated 29 April 2011 (the "Note Purchase Agreement") VTG Deutschland GmbH has issued various tranches of notes (the "USPP Notes") by way of a private placement to certain institutional investors in the United States and Europe. The USPP Notes include (i) 170,000,000 Series A Notes due 6 May 2021 (the "Series A Notes"), (ii) 150,000,000 Series B Notes due 6 May 2023 (the "Series B Notes"), (iii) 130,000,000 Series C Notes due 6 May 2026 (the "Series C Notes") and (iv) $40,000,000 Series D Notes due 6 May 2018 (the "Series D Notes"). The proceeds from the issuance of the USPP Notes have been utilised to repay certain existing financial indebtedness and for general corporate purposes. The Series A Notes bear interest at a fixed rate of 5.736% p.a., the Series B Notes bear interest at a fixed rate of 5.780% p.a., the Series C Notes bear interest at a fixed rate of 5.834% p.a. and the Series D Notes bear interest at a fixed rate of 4.890% p.a.

107 107 The obligations of VTG Deutschland GmbH under the USPP Notes are guaranteed by guarantees from those members of VTG Group which are also guarantors under the Syndicated Credit Facilities Agreement (except for VTG Deutschland GmbH and VTG RAIL ESPANA S.L. (Spain)). Subject to the terms of the Security Agency Agreement, the holders of the USPP Notes also benefit from the Collateral. Pursuant to the Note Purchase Agreement and the terms of the USPP Notes VTG Deutschland GmbH may, at its option, prepay the USPP Notes in whole or in part (but, if in part, in an amount which is not less than 5% of the aggregate principal amount of all USPP Notes) at 100% of the nominal amount of the USPP Notes plus the applicable make-whole amount which is determined in accordance with the Note Purchase Agreement and the terms of the USPP Notes taking into account the discounted value of all future payments which would have become due had the relevant USPP Notes been repaid on the stated maturity date. If upon the occurrence of a change of control with respect to VTG or VTG Deutschland GmbH any rating assigned by S&P or Moody's to the USPP Notes (currently the USPP Notes are not rated) is reduced below a certain minimum rating or, if no rating is assigned to the USPP Notes at the time when such change of control occurs, VTG fails to establish a certain minimum rating of the USPP Notes within a period of 90 days after the occurrence of such change of control or such change of control results in financial indebtedness of a member of VTG Group in excess of 20,000,000 becoming immediately due and payable or being accelerated by the relevant creditors, VTG Deutschland GmbH is obliged to offer each holder of USPP Notes to prepay such USPP Notes. The Note Purchase Agreement and the terms of the USPP Notes require VTG Aktiengesellschaft to comply with an interest cover test, a leverage covenant test and an asset cover test. In that respect the covenant levels required by the Note Purchase Agreement and the terms of the USPP Notes are in all material respects identical to those in the Syndicated Credit Facilities Agreement. The Note Purchase Agreement and the terms of the USPP Notes also contain a most favoured lender clause pursuant to which any additional or stricter financial covenants contained in any other material credit facility (which comprises any facility with a principal amount in excess of 20 million) will be automatically incorporated into the Note Purchase Agreement and the terms of the USPP Notes. The Note Purchase Agreement and the terms of the USPP Notes also provide for general undertakings, information undertakings, representations and warranties and events of default which are customary for financings of this kind. Collateralization of Syndicated Credit Facilities Agreement and the USPP Notes Both the lenders under the Syndicated Credit Facilities Agreement and the holders of the USPP Notes benefit from the Collateral. Pursuant to the terms of the Security Agency Agreement the Collateral is held and administered by the Security Agent. If any of the obligations secured by the Collateral is not paid when due, the Security Agent will take the relevant enforcement actions if so directed by a decision of the lenders under the Syndicated Credit Facilities Agreement, the holders of the USPP Notes and other creditors benefitting from the Collateral (the "Senior Secured Creditors") who hold more than 25% of the aggregate amount of all secured obligations. Decisions on the manner of enforcement and other voting matters require the consent of Senior Secured Creditors who hold more than 50% of the aggregate amount of all secured obligations unless the Security Agency Agreement provides for a different qualified majority. Pursuant to the Security Agency Agreement the proceeds from the enforcement of the Collateral will be applied, after the deduction of any costs and expenses incurred by the Security Agent, on a pro rata basis towards payment of any amounts due to the Senior Secured Creditors (except for any make-whole amounts payable under the USPP Notes or any breakage costs or prepayment penalties payable under the Syndicated Credit Facilities Agreement). The Security Agency Agreement also contains a mechanism which enables the Security Agent to release certain assets (including shares in a member of VTG Group) from the Collateral or to release a member of VTG Group from the guarantee issued by it if such release is necessary in order to effect a disposal of such asset or such member of VTG Group and certain pre-conditions are satisfied.

108 108 Existing Project Financings To lower financing costs and compartmentalize risk, VTG Group has selectively utilized non-recourse project financings for a number of its stand-alone subsidiaries. Three of VTG's subsidiaries, Klostertor Rail GmbH, Deichtor Rail GmbH and Ferdinandstor Rail GmbH have agreed separate secured loans with Deutsche Verkehrsbank, Frankfurt and the Kreditanstalt für Wiederaufbau, Frankfurt. The bank liabilities of the three subsidiaries amounted to 85.2 million as of 30 September The relevant tranches of the USPP Notes become due in April 2017, March 2018 and November 2021 respectively. These project financings are asset based and being repaid by the generated cash flow of the rentals of the respective fleet. The project financings are directly secured by the assets and equity of the respective asset owning companies. Although on a non-recourse basis to VTG these financings constitute debt with respect to the calculation of the Financial Covenants Net debt/ebitda and Interest Cover. Operate Leases In the past years VTG Group has entered into a number of rental and leasing agreements where the respective VTG Group companies are not considered the economic owners of the lease assets, i.e. largely rail freight cars and tank containers. The operating leases have an initial average term of eleven years and include purchase options at maturity that correspond to the fair value of the asset. As of 30 September 2014, the total financial commitment due to obligations from rental, leasehold and leasing agreements amounts to million. Other than the aforementioned agreements, the Guarantor has not entered into any material contract in the ordinary course of its business, which could result in the Guarantor being under an obligation or entitlement that is material to the ability of the Guarantor to meet its obligations to Note Holders in respect of the Notes. AAE Material Agreements Financing Facilities AAE Group is financed by (i) bank loans with an outstanding amount of 437,156,908 at 30 September 2014 and (ii) notes with an outstanding amount of 354,617,453. In addition, 23,800,000 other loans and a 67,500,000 loan by GATX Global Holding GmbH, Zug, Switzerland are in place. AAE Group's financial debt as at 30 September 2014 is made of three groups of financing bank loans: A syndicated loan with an outstanding amount of 247,019,196, granted by a group of seven European banks maturing in This club loan has semi-annual repayments. A club loan with an outstanding amount of 89,750,000, granted by two banks, also maturing in The repayment schedule is semi-annual. Several loans with a total outstanding amount of 37,794,649 granted by DVB Bank SE ("DVB") with the longest slice maturing in An additional 86,400,000 bridge facility is in place, drawn for 62,593,063 at September This bridge loan is designed to replace a 42,500,000 AAE RailFleet facility loan matured in January These financings are partially hedged. Notes AAE issued a 174,617,453 Euro Freight Car Finance S.A. ("EFCF") secured floating rate note, maturing in This note is fully hedged. Furthermore 180,000,000 notes issued by AAE RailLease S.à r. l. are maturing between 2018 and The notes are partially hedged. Other Financing Agreements Furthermore, there is a 67,500,000 loan to AAE Holding by GATX Global Holding GmbH, Zug, Switzerland, at fixed interest rate, which will be refinanced after closing of the issuance of the Notes

109 109 and a $41,000,000 loan, granted to Ortanio by ING in USD with a maximum drawdown of $56,000,000 and a maturity in 2018 and two other loans to AAE Holding totalling 23,800,000. Legal Disputes Except for the proceedings described below, there are currently no, and the Guarantor has not been involved in any governmental, environmental, legal or arbitration proceedings during the last twelve months, against or affecting the Guarantor, nor is the Guarantor aware of any pending or threatened proceedings, which (in either case) may have or have had on the recent past significant effect on the financial position and results of operations of the Guarantor. ÖBB Infrastruktur AG versus VTG Deutschland GmbH and VTG In October 2010, ÖBB Infrastruktur AG filed a lawsuit before the district court (Landgericht) of Salzburg, Austria, against VTG Deutschland GmbH and VTG in the amount of 1,302, plus interest as a partial claim. The plaintiff claims that a train accident and related rail infrastructure damage in the Tauern Tunnel in 2007 was caused by a broken wheel disc of a VTG wagon. By order dated 28 December 2011, the court decided to obtain an expert opinion which was delivered on 8 March 2013 and supplemented by two supplementary expert opinions delivered on 18 October 2013 and 31 July The next oral hearing during which the expert will explain his opinions is scheduled for the end of January VTG Deutschland GmbH and VTG will continue to defend themselves against the claim. VTG has set up provisions in an amount it considers appropriate for these proceedings. Recent Developments and Outlook Significant Events and Transactions in the First Nine Months of 2014 New Chief Logistics and Safety Officer The Supervisory Board of VTG AG has made a new appointment to the Executive Board, with Günter-Friedrich Maas taking up office on 1 June He will now be in charge of Logistics and Safety, which, prior to his appointment, was headed provisionally by CEO Dr. Heiko Fischer and CFO Dr. Kai Kleeberg. Mr Maas has many years experience in logistics and comprehensive knowledge of the industry, providing a good foundation for further expansion of VTG's logistics divisions. Launch of partnership between VTG and Kühne + Nagel On 1 January 2014, the new rail logistics company bringing together VTG and Kühne + Nagel under the name VTG Rail Logistics commenced operations. The merger of the rail logistics operations of the two companies is aimed to enable the new company to draw on a Europe-wide network of operational centers and combine the expertise of two strong logistics providers. As major shareholder with a shareholding of 70%, VTG is assuming operational control of the new company. Further details of this collaboration can be found in the section " Rail Logistics Division". Please refer to the section "The AAE Acquisition" below for information regarding the recent acquisition of AAE Group. Outlook The basic trend in the global economy remains one of little momentum and it remains vulnerable to disruption, whether through geopolitical crises or strain in the financial markets. Still the most important driver of VTG Group earnings, the Railcar Division, has been able to improve its earnings situation and could slightly increase utilization in recent quarters. While an improving development of the global economy should generally have a positive effect on capacity utilization in the Railcar Division, this would typically occur with a time delay. The Rail Logistics Division has recently been afflicted by the changed competitive environment in the liquid goods segment and the political tensions between Russia and Ukraine. If the conflict were to persist, this would continue to have a negative impact on the development. The Tank Container Logistics Division is still in a highly competitive environment that is characterized by overcapacities in the market leading to pressure on achievable margins. Nevertheless additional efficiency measures have recently counterbalanced that effect. However, in the Company's opinion, the business model of VTG Group is generally quite robust. VTG Group expects that the contractual terms in the Railcar Division and general customer demand will keep the VTG Group business model rather stable, even in a difficult economic environment.

110 110 Economic risks will be reflected more clearly in earnings only when they are more pronounced or persist over a longer period of time. Executive and Supervisory Board Executive Board The Executive Board of VTG currently consists of three members. It is intended that Mark Stevenson, former CEO of AAE, will be appointed to the Executive Board of VTG in early While the following table highlights their responsibilities, the subsequent paragraphs provide a brief account of their curricula vitae: Name Dr. Heiko Fischer, Chairman of the Board... Dr. Kai Kleeberg, CFO... Günter-Friedrich Maas... Mark Stevenson... Responsibilities Human resources, legal, internal audit, communication and marketing as well as the Railcar Division Finance Logistics and Safety Debt financing, tax and company integration Dr. Heiko Fischer, born 1967, studied business and economics at the Julius Maximilians University in Würzburg, and at the University at Albany, State University of New York, in Albany, NY, where he graduated in 1992 with an MBA. In 1995 he earned his doctorate in economic sciences (Dr. rer. pol.) at the Julius-Maximilians University in Würzburg. That same year Dr. Fischer began his professional career as office manager for the executive chairman of VTG Vereinigte Tanklager und Transportmittel GmbH. On 1 January 1999 he changed to the Rail division of the former VTG- Lehnkering AG, where he built up the business line TRANSWAGGON (general cargo rail cars). From 1 January 2001 Dr. Fischer was responsible as managing director of the Rail division for sales and marketing, as well as the business line TRANSWAGGON and the acquisition and integration of the Brambles European Rail division. In May 2004, Dr. Fischer was elected Chairman of the Executive Board of VTG. Dr. Heiko Fischer is responsible for human resources, legal, internal audit, communication and marketing as well as the Railcar Division. He furthermore holds mandates at external corporations, trade associations and domestic and foreign subsidiaries and joint ventures of VTG Group. Dr. Kai Kleeberg, born 1960, CFO, is responsible for the finance department. He also fulfills several mandates at other domestic and foreign subsidiaries and joint ventures of VTG Group. Dr. Kleeberg studied business administration at the University of Hamburg. After having graduated in 1986, he worked as research assistant at the Institute for Industrial Management (Institut für Industrielles Management) at the German Military University (Universität der Bundeswehr) in Hamburg. In 1993, he earned his doctorate in economic science (Dr. rer. pol.) and in the same year he began working at debis Daimler-Benz InterServices in Berlin in the area of internal audit/business auditing. In April 1995, he changed to VTG Vereinigte Tanklager und Transportmittel GmbH. There he was initially responsible for planning and controlling for the newly acquired Lehnkering AG. In 1998, Dr. Kleeberg took over leadership of the corporate development department for the activities of the France-based Algeco Group with its pan-european operations. With the sale of the Algeco Group to Hapag-Lloyd AG, Dr. Kleeberg changed to Hapag-Lloyd AG as of January 2000, where he was responsible for the integration and change management in the course of the integration of the Algeco Group into the Hapag-Lloyd Group. In August 2001 he returned to VTG-Lehnkering AG and took over the central controlling management. In May 2004, Dr. Kleeberg was appointed to the Executive Board of VTG. Günter-Friedrich Maas, born 1970, is the member of the Executive Board responsible for the Logistics and Safety area. He is also in charge of business development in the Rail Logistics and Tank Container Logistics Divisions. Originally trained as a logistics manager, he has worked in the logistics industry since In 1995 he began managing Friedrich Maas Spedition in Duisburg, as General Manager and shareholder. The company was later sold to the Dutch Den Harthogh Group. At Rhenus he managed Rhenus Road and was also General Manager of Rhenus RETrans from

111 to From 2007 he continued his career at the Hoyer Group, and besides managing Hoyer Nederland BV, he also took over responsibility for the central region in the Chemilog business unit. In 2010 Mr Maas became director of this business unit. In June 2014, Günter-Friedrich Maas was appointed to the Executive Board of VTG. Mark Stevenson, born 1963, studied modern languages at Oxford University. After having graduated, he began his professional career at Price Waterhouse in London in He graduated as Chartered Accountant in In 1990 he changed to Revisuisse Price Waterhouse, Switzerland and in 1992 to Leutwiler und Partners where he worked as a Strategic Consultant. In 1994 he changed to AAE where he became Chief Financial Officer. In 2006 he was elected Chairman of the executive board of AAE. In connection with the AAE Acquisition it is intended that he will be appointed to the Executive Board of VTG where he will be responsible for debt financing, tax and company integration. Outside VTG Group, the Executive Board members currently hold the following administrative responsibilities, positions as a partner or mandates as members of Executive Boards, Supervisory Boards or comparable controlling bodies. Name External mandates Dr. Heiko Fischer "Brückenhaus" Grundstücksgesellschaft m.b.h. Kommanditgesellschaft "Brückenhaus" Grundstücksgesellschaft m.b.h. & Co. KG Navigator Holdings Ltd., Marshall Islands Dr. Kai Kleeberg - Günter-Friedrich Maas - Mark Stevenson - The members of the Executive Board may be contacted using VTG's business address: Nagelsweg 34, Hamburg, Germany. Supervisory Board In accordance with the Articles of Association, the Supervisory Board comprises six members elected by the general shareholders' meeting. The following overview shows the members of the Supervisory Board together with their other administrative, executive and supervisory board mandates and mandates on similar supervisory bodies both in Germany and abroad or their partnership stakes in enterprises and companies outside VTG Group as of 31 December 2014: Name Main function External Mandates Dr. rer. pol. Wilhelm Scheider Chairman of the Supervisory Board, Consultant b) Hydac Electronic GmbH Hydac Technology GmbH 1) Dr. rer. pol. Klaus-Jürgen Juhnke Former managing director of VTG Vereinigte Tanklager und Transportmittel GmbH, Deputy Chairman of the Supervisory Board a) Flughafen Hamburg GmbH 1) Dr. jur. Bernd Malmström Solicitor a)

112 112 Dr. sc. pol. Jost A. Massenberg CEO of Benteler Distribution International GmbH K + S Aktiengesellschaft Lehnkering GmbH 2) b) Colada AcquiCo S.à r.l., Luxemburg DAL Deutsche Afrika Linien GmbH & Co. KG time: matters GmbH 1) b) Felix Schoeller Holding GmbH & Co. KG Dr. jur. Christian Olearius Gunnar Uldall Chairman of the supervisory board M.M.Warburg & CO (AG & Co.) Kommanditgesellschaft auf Aktien Management Consultant, Senator (retired) a) Degussa Bank AG 1) M.M.Warburg & CO (AG & Co.) Kommanditgesellschaft auf Aktien 1) M.M.Warburg & CO Geschäftsführungs- Aktiengesellschaft 1) M.M.Warburg & CO Hypothekenbank Aktiengesellschaft 1) Marcard, Stein & CO AG 1) b) M.M.Warburg Bank (Schweiz) AG, Schweiz 1) Private Client Partners AG, Schweiz 1) a) BDO Deutsche Warentreuhand Aktiengesellschaft a) Membership of statutory supervisory boards. b) Membership of comparable controlling bodies of business enterprises in Germany and abroad. 1) Chairman 2) Deputy Chairman b) Bogdol Verwaltungs- und Immobilien GmbH Deutsches Institut für Service- Qualität GmbH & Co. KG 1) Hermes Europe GmbH, Hamburg The members of the Supervisory Board may be reached at VTG's business address: Nagelsweg 34, Hamburg, Germany. Potential Conflict of Interest With respect to potential conflicts of interest between the obligations of the members of the Executive

113 113 Board of VTG or the Supervisory Board of VTG and their private interests or outside obligations, it is to be noted that members of the Executive Board and the Supervisory Board currently hold shares of VTG. Altogether, these shares amount to a holding of less than 1% of the issued shares of VTG. Beyond this, there are no conflicts of interest or potential conflicts of interest between the obligations of the members of the Executive Board or the Supervisory Board of VTG on the one hand, and their private interests or outside obligations on the other. Historical Financial Information The audited consolidated financial statements of VTG Group for the fiscal year ended 31 December 2013 and 31 December 2012 are incorporated by reference into, and form part of, this Offering Circular (see "Documents Incorporated by Reference"). Interim Financial Information The reviewed condensed consolidated interim financial statements of VTG Group for the period from 1 January 2014 to 30 September 2014 and the auditors' review report thereon, together contained in VTG Group's Interim Financial Report as of 30 September 2014 on pages 13 to 35, are incorporated by reference into, and form part of, this Offering Circular (see "Documents Incorporated by Reference"). The Guarantor publishes interim financial statements at the end of each quarter year. Auditors VTG's auditors are PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft ("PwC"), New-York-Ring 13, Hamburg, Germany. PwC audited the consolidated financial statements for the fiscal years ended 31 December 2013 and 31 December 2012, which were prepared in accordance with the International Financial Report Standards ("IFRS") and the additional accounting requirements under Section 315a(1) of the German Commercial Code (HGB), and also audited the annual financial statements for the fiscal year 2013, which were prepared in accordance with German generally accepted accounting principles, and issued an unqualified auditors' report in each case. PwC is a member of the German Chamber of Public Accountants (Wirtschaftsprüferkammer).

114 114 THE AAE ACQUISITION Acquisition Structure On 29 September 2014, the Company entered into an agreement with Mr Andreas Goer, the former sole shareholder of AAE Ahaus Alstätter Eisenbahn Holding AG ("AAE") pursuant to which the Company purchased from Mr Goer all shares in AAE Group (the "AAE Acquisition"). As consideration for the shares of AAE, the agreement provided for payment of a cash component in the amount of approx. 15 million, the issuance of a subordinated vendor loan note in the amount of approximately 230 million to Mr Goer ("Vendor Loan Note"), the issuance of approximately 7.37 million New Shares of the Company to Mr Goer, and, based on an adjustment provision provided for in the agreement, an additional compensation (if any) of up to a maximum of approximately 3 million. In order to provide for the share component, the Executive Board of the Company resolved on 29 September 2014 with the consent of the supervisory board of the Company on a capital increase against mixed contribution in kind, excluding, however, any pre-emptive rights of the shareholders. The AAE Acquisition has been completed on 6 January 2015 (the "Closing"). In connection with the AAE Acquisition, Mr Goer has undertaken to purchase Notes upon issuance in the nominal amount of up to 74 million against partial redemption of the Vendor Loan Note. Approximately 155 million of the net issuance proceeds from the Notes will be paid to Mr Goer to settle the remaining outstanding amount of the Vendor Loan Note. Upon settlement of the Vendor Loan Note with approximately 155 million of the net issuance proceeds, Mr Goer will grant a shareholder loan to AAE in an amount of 70 million to refinance a loan granted by GATX Global Holding GmbH (see "Description of the Guarantor and VTG Group Material Agreements AAE Material Agreements Financing Facilities"). Incorporation, Registered Office, Corporate Purpose and Fiscal Year of AAE AAE is a stock corporation (Aktiengesellschaft) organised under the laws of Switzerland and is registered in the commercial register of the canton Zug under CHE AAE was registered in the commercial register on 13 November 1998 and established for an indefinite period. AAE's registered office is in Baar, Switzerland and its head office is at Neuhofstrasse 4, 6340 Baar, Switzerland, Tel AAE's legal name is AAE Ahaus Alstätter Eisenbahn Holding AG. In its business dealings, the company uses the name AAE. In accordance with Article 2 of the Articles of Association of AAE, AAE's corporate purpose is the acquisition and administration of assets and holdings as well as the financing of undertakings and commercial transactions of all kind. AAE may establish branches in Switzerland and abroad and engage in all such business activities as may directly or indirectly serve its corporate purpose. Certain one-off effects in connection with the AAE Acquisition In the context of the AAE Acquisition, VTG expects that certain effects accounted for by AAE Group in the period from 1 January to 30 September 2014 are only one-off effects in relation to AAE Group. These effects are summarised under (1) through (5) below. Other than indicated under "Pro Forma Consolidated Financial Information of VTG AG for the nine-month period ended 30 September 2014", there have been made no adjustments for these one-off effects for the purpose of the preparation of the Pro Forma Consolidated Financial Information as set out below (see "Pro Forma Consolidated Financial Information of VTG AG for the nine-month period ended 30 September 2014"). (1) Upon Closing of the AAE Acquisition, the former shareholder of AAE as well as the administrative board (Verwaltungsrat) of AAE resigned from offices formerly held in the AAE Group and will no longer be entitled to any remuneration or reimbursement in connection therewith. Furthermore, AAE's former CEO (chief executive officer) resigned from office on 30 September CEO s office and assistant were still in place as the function was administered by the CFO (chief financial officer). In the first nine months of the fiscal year 2014 and for the period from 1 October 2014 until the expiry of the contract of employment of AAE's former CEO, AAE Group accounted for expense in the total amount of k 2,084 for these remunerations and reimbursements.

115 115 (2) For the period from 1 January to 30 September 2014, the net profit of the AAE Group amounted to k 1,592. The net profits have been affected by currency exchange losses in the amount of 5,821,000 in connection with the valuation of financings taken out by Russian subsidiaries of the AAE Group in U.S. Dollar. These resulted in (unrealized) U.S Dollar/Russian Rouble currency exposures and have been accounted for in the results of AAE Group as of 30 September (3) The sale of AAE Vozne to AXBenet in 2013 resulted in additional tax expense for the purchaser and tax income for the seller. The resulting purchase price adjustment in the amount of k 883 has been accounted for in the results of AAE Group as of 30 September 2014 and has thus negatively affected the net profits as of such date. (4) The amortization period for sliding-wall wagons (Schiebewandwagen) has been aligned with the amortization period generally applied by VTG Group. The resulting shortening of the amortization period was recognised as expense in the amount of 1,682,000 in the results of AAE Group as of 30 September (5) On the one hand, the valuation of ineffective interest swaps resulted in expenses of k 4,697 of the AAE Group as of 30 September On the other hand, effective interest swaps which were accounted for as ineffective due to the initial consolidation of the AAE Group in the proforma presentation accounted for income in the amount of k 3,681 in the pro-forma income statement shown under "Pro Forma Consolidated Financial Information of VTG AG for the nine-month period ended 30 September 2014" below. In aggregate, these one-off effects amount to k 11,486 before taxes. The tax expenses accounted for by the AAE Group as of 30 September 2014 comprise an amount of k 623 which relates to tax expense in respect of the previous fiscal year. If the aforementioned one-off effects had not materialized, tax expense in the amount of k 566 would have been recognized by AAE Group as of 30 September The tax position of AAE Group as of 30 September 2014 was therefore negatively affected in the amount of k 57. The group net profit is allocated to shareholders of VTG, non-controlling interest and the Vendor Loan Note. The calculation of the interest for the Vendor Loan Note includes interest expense for the Vendor Loan Note which provides for a step up after six months. VTG expects to redeem a portion of the Vendor Loan Note from net proceeds resulting from the issuance of the Notes and to replace the remaining portion with Notes in the nominal amount of up to 74 million to be acquired by Mr Andreas Goer prior to the expiry of this six month period. This would reduce the otherwise scheduled interest payments by 1,150,000 since VTG expects that the step up after six months will not materialize. The currency exchange losses resulting from the valuation of the financing in Russia (see no. 2 above) is allocated to the non-controlling interests as well and would have resulted in a value increase of the non-controlling interests by 1,028,000 had it not materialized.

116 116 PRO-FORMA CONSOLIDATED FINANCIAL INFORMATION OF VTG AG FOR THE NINE-MONTH PERIOD ENDED 30 SEPTEMBER 2014 Introduction On 29 September 2014, VTG AG entered into an agreement with Mr Andreas Goer, the former sole shareholder of AAE Ahaus Alstätter Eisenbahn Holding AG ("AAE") pursuant to which VTG AG purchased from Mr Goer all shares in AAE Group. As consideration for the shares of AAE, the agreement provided for payment of a cash component in the amount of approx. 15 million, the issuance of a subordinated vendor loan note in the amount of approximately 230 million to Mr Goer ("Vendor Loan Note"), the issuance of approximately 7.37 million New Shares of VTG AG to Mr Goer which leads to a capital increase of k 125,171 (based on a share price as of November 28, 2014 amounting to 16.99), and, based on an adjustment provision provided for in the agreement, an additional compensation (if any) of up to a maximum of approximately 3 million. The additional compensation depends on the dividend distribution for the financial year For purposes of the pro forma financial statements it was assumed that no additional compensation needs to be paid and the new shares were valued with the share price as of November 28, 2014 of EUR 16.99, resulting in a total purchase price of k 369,559. In order to provide for the share component, the Executive Board of VTG AG resolved on 29 September 2014 with the consent of the supervisory board of VTG AG on a capital increase against mixed contribution in kind, excluding, however, any pre-emptive rights of the shareholders. The AAE Acquisition has been completed on 6 January 2015 (the "Closing"). Since the AAE Acquisition is expected to have a material impact on the assets, financial position and results of operations of VTG Group, the following pro forma consolidated financial information was prepared by VTG AG, comprising pro forma consolidated income statements for the period from 1 January 2014 to 30 September 2014 and a pro forma consolidated statement of financial position as of 30 September 2014 and pro forma notes (together, the Pro Forma Consolidated Financial Information ). The purpose of the Pro Forma Consolidated Financial Information is to show the material effects that the AAE Acquisition would have had on the historical consolidated financial statements of VTG AG if the AAE Group had already existed in the structure created by the AAE Acquisition as of 1 January 2014 with respect to the pro forma consolidated income statements in the period 1 January 2014 to 30 September 2014 and with respect to the pro forma consolidated statement of financial position as of 30 September The presentation of the Pro Forma Consolidated Financial Information of VTG Group (including AAE) is based on certain pro forma assumptions and is intended for illustrative purposes only. The Pro Forma Consolidated Financial Information of VTG Group (including AAE) assumes, in particular, that the capital increase, the grant of the vendor loan and the recognition of the cash component had already taken place on 1 January 2014 for purposes of the pro forma consolidated income statements of VTG Group for the period from 1 January 2014 to 30 September 2014 and for the pro forma consolidated statement of financial position of VTG Group as of 30 September Therefore, the Pro Forma Consolidated Financial Information describes only a hypothetical situation and thus, due to its nature, the presentation does not reflect the actual net assets, financial position and results of operations of VTG AG after completion of the AAE Acquisition. In addition, the Pro Forma Consolidated Financial Information does not represent a forecast of the net assets, financial position and results of operations of VTG Group (including AAE) at a future time. Furthermore, the Pro Forma Consolidated Financial Information is only meaningful in conjunction with the historical consolidated financial statements of VTG Group (excluding AAE) as of 31 December 2013 and for the period 1 January 2013 to 31 December 2013 and the historical interim condensed consolidated financial statements of VTG Group (excluding AAE) as of 30 September 2014 and for the period 1 January 2014 to 30 September 2014.

117 117 Historical financial information The pro forma consolidated income statement for the period from 1 January 2014 to 30 September 2014 and the pro forma consolidated statement of financial position as of 30 September 2014 are based on the following historical financial information: The unaudited and published consolidated interim financial statements of VTG Group (excluding AAE) as of 30 September 2014, prepared on the basis of the International Financial Reporting Standards, as adopted by the EU ( IFRS ), and the additional requirements of German commercial law pursuant to section 315a (1) of the German Commercial Code (Handelsgesetzbuch, HGB). The unaudited and unpublished consolidated income statement for the period from 1 January 2014 to 30 September 2014 and consolidated statement of financial position as of 30 September 2014 of AAE, prepared on the basis of IFRS. The historical financial information of the Pro Forma Consolidated Financial Information was prepared on the basis of IFRS and the accounting policies consistently applied by VTG AG as described in the notes to its IFRS consolidated interim financial statements as of 30 September 2014 and for the period 1 January 2014 to 30 September Reconciliation of the historical financial information of AAE In connection with the proposed acquisition of AAE by VTG AG, AAE adopted as of 1 January 2014 the accounting policies and instructions of VTG AG described in the notes to its IFRS consolidated interim financial statements as of 30 September 2014 and for the period 1 January 2014 to 30 September Accounting policy adjustments The following accounting policy adjustments have been prepared by AAE: Tangible fixed assets The useful life of certain railcar types (Habbins, Hbbins) has been changed to align this to the useful life (i.e. 30 years) of similar railcar types owned by VTG Group (excluding AAE). As a result the book value of tangible fixed assets of 1 January 2014 has been decreased by k 4,489 and a related deferred tax effect of k 449 has been recognised. In 2014 the change of useful life results in k 1,682 additional depreciation and k 168 deferred tax income for the period 1 January 2014 to 30 September Provisions for Pensions The adoption of IAS 19 for accounting for employee benefits results in the recognition of a provision for pensions amounting to k 2,327 and a deferred tax asset amounting to k 232. During the first nine months of 2014 this pension provision increased up to k 4,028 as of 30 September The effect after deferred taxes recorded in the consolidated income statement for the period 1 January 2014 to 30 September 2014 amounted to k 629. The effect in other comprehensive income amounted to k 902 net of tax. Presentation adjustments Explanation of presentation adjustments of the AAE Group consolidated interim financial information. Based on the respective presentation format, the consolidated statement of financial position as of 30 September 2014 and the income statement of AAE for the period 1 January 2014 to 30 September 2014 were adjusted to the format and the designation of the line items used in the consolidated statement of financial position and the consolidated income statement of VTG AG. The following presentation adjustments were applied to the consolidated statement of financial position and the consolidated income statement of AAE. The footnotes refer to the tables Presentation of the pro forma consolidated income statement for the period from 1 January 2014 to 30 September 2014 and Presentation of the pro forma consolidated balance sheet as of 30 September 2014.

118 118 Presentation of the pro forma consolidated income statement for the period from 1 January 2014 to 30 September VTG AG AAE explanation of presentation adjustments Sum Pro-Forma Adjustments explanation of Pro Forma adjustments Pro-Forma Income Statement as of Revenue 610, , , ,041 Changes in inventories 1,651 1, ,651 Other operating income 24, , ,725 Total revenue and income 636, , , ,417 Cost of materials 338,397 7, , ,435 Personnel expenses 65,797 11,788 77, ,585 Impairment, amortization and depreciation 79,064 57, ,103 5,850 a 141,953 Other operating expenses 93,222 24, , d 117,562 Total expenses 576, , ,172 5, ,535 Income from associates , ,525 Financing income ,207 3,681 c 4,888 Financing expenses -39,865-49,341-89, ,206 Financial loss (net) -39,425-48,574-87,999 3,681-84,318 Profit before taxes on income 21,484 4,287 25,771-1,682 24,089 Taxes on income and earnings 7,949 2,695 10, a, c, d 10,595 Group net profit 13,535 1,592 15,127-1,634 13,493 Thereof relating to Shareholders of VTG Aktiengesellschaft 13,858 2,865 16,723-12,775 3,948 Non-controlling interests ,273-1, ,906 Vendor loan 11,451 b 11,451 13,535 1,592 15,127-1,634 13,493 Earnings per share (in ) (undiluted and diluted) 0.14

119 119 Presentation of the pro forma consolidated balance sheet as of 30 September VTG AG AAE explanation of presentation adjustments Sum Pro Forma Adjustm ents explanation of Pro Forma adjustments Pro-Forma Balance sheet as of ASSETS 000 Goodwill 165, , ,219 a 308,601 Other intangible assets 52,519 4, ,816 59,864 a 116,680 Tangible fixed assets 1,152, ,249 2,086, ,697 a, e 2,282,667 Investments in associates 17,061 7, ,996 2,250 a 27,246 Other investments 5,468 5, ,468 Fixed assets 1,393, ,481 2,339, ,030 2,740,662 Derivative financial instruments Other financial assets 3,988 6, , ,283 Other assets Deferred income tax assets 20,209 18,013 38, ,222 Non-current receivables 24,507 24,624 49, ,131 Non-current assets 1,417, ,105 2,388, ,030 2,789,793 Inventories 21,918 9,097 31, ,015 Trade receivables 103,328 38, , ,354 Derivative financial instruments 1,585 1, ,585 Other financial assets 11,535 2, , ,872 Other assets 16,844 5,833 22, ,677 Current income tax assets 5,001 5, ,001 Current receivables 138,293 46, , ,489 Cash and cash equivalents 64,922 29,989 94, ,911 Current assets 225,133 85, , ,415 Non-current assets held for sale 81,054 81,054-81,054 e 0 Total assets 1,642,791 1,137,441 2,780, ,976 3,100,208

120 VTG AG AAE explanation of presentation adjustments Sum Pro Forma Adjustments explanation of Pro Forma adjustments Pro-Forma Balance sheet as of SHAREHOLDERS EQUITY AND LIABILITIES 000 Subscribed capital 21,389 20,667 42,056-13,300 a 28,756 Additional paid-in capital 193, , ,804 a 311,547 Retained earnings 119,935 69, ,479-80,995 a, b, c 108,484 Revaluation reserve -3,636-12,349-15,985 12,349 a,c -3,636 Equity attributable to shareholders of VTG Aktiengesellschaft 331,431 77, ,293 35, ,151 Mezzanine Capital 240,839 a, b 240,839 Non-controlling interests 8,387 9,499 17,886 9,083 a 26,969 Equity 339,818 87, , , ,959 Provisions for pensions and similar obligations 58,984 4,028 63, ,012 Deferred income tax liabilities 124,628 15, ,679 19,196 a 158,875 Other provisions 11,967 1,376 13, ,343 Non-current provisions 195,579 20, ,034 19, ,230 Financial liabilities 843, , ,639, ,639,049 Derivative financial instruments 3,363 88,299 91, ,662 Non-current liabilities 847, ,390 1,730, ,730,711 Non-current liabilities 1,042, ,845 1,946,745 19,196 1,965,941 Provisions for pensions and similar obligations 3,320 3, ,320 Current income tax liabilities 33,931 1,077 35, ,008 Other provisions 41, , ,358 Current provisions 79,045 1,641 80, ,686 Financial liabilities 29, , ,477 15,000 a 163,477 Trade payables 125,935 7, , ,637 Derivative financial instruments 10,241 10, ,241 Other financial liabilities 10,512 10, ,512 Other liabilities 5,266 17, , ,755 Current liabilities 181, , ,622 15, ,622 Current liabilities 260, , ,308 15, ,308 Total equity and liabilities 1,642,791 1,137,441 2,780, ,976 3,100,208

121 Includes the total of AAE line items Depreciation of railcars (k 56,067), Amortisation of other intangible assets (k 311) and Amortisation of acquired lease contracts (k 661). 2. Freight costs of the AAE line item Repair, maintenance, freight and insurance costs (k 7,038) are included in "Costs of materials", whereas Repair, maintenance and insurance costs (k 17,812) are included in "Other operating expenses". 3. Includes non-current AAE line item Acquired leased contracts (k 3,815). 4. Includes non-current AAE line item Investment in jointly controlled entity (k 7,768) and AAE line item Investment in associates (k 167) 5. Includes non-current AAE line item Loan to jointly controlled entity (k 2,222) and Finance lease receivables (k 4,073) 6. Includes current AAE line items Receivables from affiliated companies amounting to k 63 and Receivables from jointly controlled entity amounting to k Includes current AAE line items Loan to jointly controlled entity amounting to k 600 and Finance lease receivables amounting to 1, Includes non-current AAE line items Interest-bearing loans and borrowings (k 770,997) as well as Interest-bearing loans from shareholders (k 24,094). 9. Includes current AAE line items Interest-bearing loans and borrowings (k 114,646) as well as accruals for interest (k 4,757) which were shown in AAE line item Other payables and accruals. 10. Consists of Trade payables (k 7,702) shown in current AAE line item Other payables and accruals which refer to VAT liabilities, other short term liabilities and deferred income. 11. Consists of the residual amount of AAE line item Other payables and accruals (k 17,489) which has not been assigned to VTG line items Financial liabilities and Trade payables. Basis of preparation Preparation principles The Pro Forma Consolidated Financial Information was prepared on the basis of the IDW Accounting Practice Statement: Preparation of Pro Forma Financial Information (IDW AcPS AAB 1.004) (IDW Rechnungslegungshinweis: Erstellung von Pro-Forma-Finanzinformationen (IDW RH HFA 1.004)), as promulgated by the Institute of Public Auditors in Germany (IDW, Institut der Wirtschaftsprüfer in Deutschland e.v.). The pro forma adjustments made for purposes of the Pro Forma Consolidated Financial Information are based on information available and on preliminary estimates, as well as certain pro forma assumptions of VTG as described in these pro forma notes. The Pro Forma Consolidated Financial Information neither contains any potential synergies or cost savings nor any normalization of any restructuring or any additional future expenses that could result from the AAE Acquisition. Furthermore, the Pro Forma Consolidated Financial Information does not contain any potential or future effects resulting from the remedies imposed on VTG AG to obtain merger clearance by the European Commission or other constraints ruled by other authorities or regulators in connection with the AAE Acquisition. The figures in tables of the Pro Forma Consolidated Financial Information were rounded according to established commercial principles. The figures presented might not add up to the totals shown. Pro Forma assumptions For purposes of the pro forma consolidated statement of financial position and the pro forma consolidated income statement, it is assumed that closing of the acquisition occurred as of 1 January For purposes of the Pro Forma Consolidated Financial Information, it is assumed that the value of the Consideration Shares transferred by VTG AG to Mr. Goer in connection with the AAE Acquisition is determined based on VTG AG closing share price of 16,99 as of 28 November 2014.

122 122 For purposes of the Pro Forma Consolidated Financial Information, it is assumed that the capital increase, the payment of the cash component and the grant of the vendor loan took place on 1 January Explanation of the pro forma adjustments Explanation of the pro forma adjustments to the pro forma consolidated income statement for the period from 1 January 2014 to 30 September a b c d PPA preliminary and AAE equity elimination Interest accretion on Vendor Loan Redesignation Hedging Transactioncosts Total 000 Revenue 0 Changes in inventories 0 Other operating income 0 Total revenue and income Cost of materials 0 Personnel expenses 0 Impairment, amortization and depreciation 5,850 5,850 Other operating expenses Total expenses 5, ,363 Income from associates 0 Financing income 3,681 3,681 Financing expenses 0 Financial loss (net) 0 0 3, ,681 Profit before taxes on income -5, , ,682 Taxes on income and earnings Group net profit -5, , ,634 Thereof relating to Shareholders of VTG Aktiengesellschaft -4,897-11,451 3, ,775 Non-controlling interests Vendor loan 11,451 11,451-5, , ,634

123 123 Explanation of the pro forma adjustments of the pro forma consolidated balance sheet as of 30 September a b c d e PPA preliminary and AAE equity elimination Interest accretion on Vendor Loan Redesignation Hedging Transactioncosts Reclassification IFRS 5 Total ASSETS 000 Goodwill 143, ,219 Other intangible assets 59,864 59,864 Tangible fixed assets 114,643 81, ,697 Investments in associates 2,250 2,250 Other investments 0 0 Fixed assets 319, , ,030 Derivative financial instruments 0 0 Other financial assets 0 0 Other assets 0 0 Deferred income tax assets 0 0 Non-current receivables Non-current assets 319, , ,030 Inventories 0 0 Trade receivables 0 0 Derivative financial instruments 0 0 Other financial assets 0 0 Other assets 0 0 Current income tax assets 0 0 Current receivables Cash and cash equivalents 0 0 Current assets Non-current assets held for sale 0-81,054-81,054 Total assets 319, ,976

124 a b c d e PPA preliminary and AAE equity elimination Interest accretion on Vendor Loan Redesignation Hedging Transactioncosts Reclassification IFRS 5 Total SHAREHOLDERS EQUITY AND LIABILITIES 000 Subscribed capital -13,300-13,300 Additional paid-in capital 117, ,804 Retained earnings -72,820-11,451 3,276-80,995 Revaluation reserve 15,625-3,276 12,349 Equity attributable to shareholders of VTG Aktiengesellschaft 47,309-11, ,858 Mezzanine Capital 229,388 11, ,839 Non-controlling interests 9,083 9,083 Equity 285, ,780 Provisions for pensions and similar 0 0 obligations Deferred income tax liabilities 19,196 19,196 Other provisions 0 0 Non-current provisions 19, ,196 Financial liabilities 0 0 Derivative financial instruments 0 0 Non-current liabilities Non-current liabilities 19, ,196 Provisions for pensions and similar obligations 0 0 Current income tax liabilities 0 0 Other provisions 0 0 Current provisions Financial liabilities 15,000 15,000 Trade payables 0 0 Derivative financial instruments 0 0 Other financial liabilities 0 0 Other liabilities 0 0 Current liabilities 15, ,000 Current liabilities 15, ,000 Total equity and liabilities 319, ,976

125 125 Adjustments with a continuing effect a. Preliminary purchase price allocation (PPA) and AAE equity elimination As consideration for all shares of AAE, the agreement provides for payment of a cash component in the amount of k 15,000, the granting of a subordinated vendor loan note with equity characteristics under IFRS in the amount of k 229,388 and the issuance of 7,367,330 new shares of VTG AG to Mr. Goer. Consideration in k Cash 15,000 Vendor Loan 229,388 Capital Increase 125,171 Total 369,559 In order to provide for the share component, VTG AG resolved on a capital increase against mixed contribution in kind under exclusion of subscription rights of the shareholders. By partial utilisation of the authorised capital, the share capital of VTG AG is to be increased from 21,388,889 by 7,367,330 to 28,756,219. For this purpose, 7,367,330 new ordinary bearer shares (no-par value shares) are to be issued. The share price for the determination of the purchase price is based on the closing price as at 28 November The difference between the subscribed capital and the issue price amounting to k 117,804 increases the additional paid-in capital. As a result of the provisional PPA in connection with the pro forma initial consolidation of the AAE Group, a fair value adjustment of k 59,864 as of 30 September 2014 was determined for customer relationships (k 58,332) and the brand AAE (k 1,532) which were assigned to the line item Other intangible assets. For the customer relationships, an estimated useful life of 21 years was assumed, resulting in additional amortization expense of k 1,559 for the nine-month period ended 30 September For The brand AAE, an estimated useful life of 3 years was assumed, resulting in additional amortization expense of k 383 for the ninemonth period ended 30 September The fair value adjustment to Tangible fixed assets amounting to k 114,643 as of 30 September 2014 is related to the wagon fleet. The valuation is based on an independent appraisal (Railistics GmbH, Bahnhofstr. 36, Wiesbaden, Germany). For the wagon fleet an estimated residual useful life of 22 years was assumed, resulting in additional depreciation expense of k 3,908 for the nine-month period ended 30 September Indicative deferred tax liabilities amounting to k 19,196 have been calculated applying a tax rate of 11.0%. The valuation of the Non-controlling interest amounting to k 9,083 is based on the proportionate fair value adjustment of the customer relationship and wagon fleet. As a result of the fair value adjustments identifiable assets acquired related to the provisional PPA, new goodwill of k 143,219 was recognised.

126 126 All figures in k Consideration 369,559 Equity attributable to shareholders of AAE./. 77,862 PPA Step Up./. 155,311 Customer relationship 58,332 Brand 1,532 Fleet 114,643 Deferred taxes - 19,196 Gross presentation of AAE joint venture (see Pro Forma Adjustment a.)./. 2,250 Non-controlling interests related to step up + 9,083 Equity after Step Ups./. 226,340 Goodwill 143,219 The AAE line item Investment in associates relates to a joint venture in Slovakia. Due to a sale of wagons by AAE to the joint venture a deferred income amounting to k 2,250 was netted with the investment in the consolidated balance sheet as of 30 September 2014 of AAE. Within the initial consolidation of the AAE group the deferred income is not to be recognised as a liability from an acquirer s perspective. The total additional net amortisation and depreciation expenses recognised in connection with the provisional PPA amounted to k 5,850 (k 1,559 customer relationship, k 383 brand AAE and k wagon fleet) for the period from 1 January 2014 to 30 September As a result of this Pro Forma development, income tax benefits in the amount of k 644 were recognised in the Pro Forma consolidated income statement for the period from 1 January 2014 to 30 September In the course of the capital consolidation process, subscribed capital in the amount of k 20,667, the retained earnings in the amount of k 357,886 and the revaluation reserve in the amount of k 15,625 have been eliminated. b. Interest Accretion on Vendor Loan Interest for the Vendor Loan amounts to k 11,451 for the first nine month of Due to the classification as equity the interest on the vendor loan is presented directly within equity as hybrid investors' interest. c. Redesignation Hedging For the purpose of the Pro Forma Financial Information, it is assumed that the hedging relationship is not effective. The development of the effective portion of the fair value of cash flow hedges previously deferred in the revaluation reserve was recognised in Financing income (k 3,681) and Taxes on income and earnings (k 405) as of 30 September Adjustments with a one-off effect d. Transaction costs Tax deductible transaction costs (mainly consulting fees) amounting to k 487 are recognised as if they had been occurred in financial year The relating tax expenses were adjusted by k 190.

127 127 e. Reclassification IFRS 5 The AAE line item Non-current assets held for sale consists of railcars which are planned to be sold to VTG. Therefore these railcars are reclassified to Tangible fixed assets.

128 128 TAXATION The following is a general description of certain tax considerations relating to the purchasing, holding and disposing of the Notes. It does not purport to be a complete analysis of all tax considerations relating to the Notes. In particular, this discussion does not consider any specific facts or circumstances that may apply to a particular holder of the Notes. The discussions that follow for each jurisdiction are based upon the applicable laws in force and their interpretation on the date of this Offering Circular. These tax laws and interpretations are subject to change that may occur after such date, even with retrospective effect. PROSPECTIVE HOLDERS OF THE NOTES SHOULD CONSULT THEIR OWN TAX ADVISERS AS TO THE PARTICULAR TAX CONSEQUENCES OF SUBSCRIBING, PURCHASING, HOLDING AND DISPOSING THE NOTES, INCLUDING THE APPLICATION AND EFFECT OF ANY FEDERAL, STATE OR LOCAL TAXES, UNDER THE TAX LAWS OF GERMANY, LUXEMBOURG AND EACH COUNTRY OF WHICH THEY ARE RESIDENTS OR CITIZENS. Taxation in the Federal Republic of Germany German tax resident Investors The following general description does not consider all aspects of income taxation in the Federal Republic of Germany ("Germany") that may be relevant to a holder in the light of the holder's particular circumstances and income tax situation. This general description is based on German tax laws and regulations, all as currently in effect and all subject to change at any time, possibly with retrospective effect. German tax resident investors holding the Notes as private assets Taxation of income from the Notes If the Notes are held as private assets (Privatvermögen) by an individual investor whose residence or habitual abode is in Germany, payments of interest under the Notes are generally taxed as investment income (Einkünfte aus Kapitalvermögen) at a 25 % flat tax (Abgeltungsteuer) (plus a 5.5% solidarity surcharge (Solidaritätszuschlag) thereon and, if applicable to the individual investor, church tax (Kirchensteuer)). The same applies to capital gains from the sale or redemption of the Notes. The capital gain is generally determined as the difference between the proceeds from the sale or redemption of the Notes and the acquisition costs. Expenses directly and factually related (unmittelbarer sachlicher Zusammenhang) to the sale or redemption are taken into account in computing the taxable capital gain. Otherwise the deduction of related expenses for tax purposes is not permitted. Where the Notes are acquired or sold in a currency other than Euro, the acquisition costs will be converted into Euro at the time of acquisition, the sales proceeds will be converted in Euro at the time of sale, and only the difference will then be computed in Euro. The flat tax is generally collected by way of withholding (see subsequent paragraph " Withholding tax") and the tax withheld shall generally satisfy the individual investor's tax liability with respect to the Notes. If, however, no or not sufficient tax was withheld (e.g., in case there is no Domestic Paying Agent, as defined below) the investor will have to include the income received with respect to the Notes in its annual income tax return. The flat tax will then be collected by way of tax assessment. The investor may also opt for inclusion of investment income in its income tax return if the aggregated amount of tax withheld on investment income during the year exceeded the investor's aggregated flat tax liability on investment income (e.g., because of available losses carried forward or foreign tax credits). If the investor's individual income tax rate which is applicable on all taxable income including the investment income is lower than 25%, the investor may opt to be taxed at individual progressive rates with respect to its investment income. Capital losses from the sales or redemption of the Notes held as private assets should generally be tax-recognised irrespective of the holding period of the Notes. Any tax-recognised capital losses may not be used to offset other income like employment or business income but may only be offset against investment income. Capital losses not utilised in one annual assessment period may be carried forward into subsequent assessment periods but may not be carried back into preceding

129 129 assessment periods. Capital losses might not be recognised by the German tax authorities if the Notes are sold at a market price, which is lower than the transaction costs. Individual investors are entitled to a saver's lump sum tax allowance (Sparer-Pauschbetrag) for investment income of 801 Euro per year (1,602 Euro for jointly assessed investors). The saver's lump sum tax allowance is also taken into account for purposes of withholding tax (see subsequent paragraph " Withholding tax") if the investor has filed a withholding tax exemption request (Freistellungsauftrag) with the respective Domestic Paying Agent (as defined below). The deduction of related expenses for tax purposes is not permitted. Pursuant to the current view of the German tax authorities (which has recently been rejected by a fiscal court in a non-binding ruling appealed to the German Federal Fiscal Court (Bundesfinanzhof)), the deduction of related expenses for tax purposes (except for the aforementioned saver's lump sum tax allowance) is also excluded in case where the investor's individual income tax rate which is applicable on all taxable income including the investment income is lower than 25 %. Withholding tax If the Notes are kept or administered in a domestic securities deposit account by a German credit institution (Kreditinstitut) or financial services institution (Finanzdienstleistungsinstitut) (or with a German branch of a foreign credit or financial services institution), or with a German securities trading company (Wertpapierhandelsunternehmen) or a German securities trading bank (Wertpapierhandelsbank) (altogether a "Domestic Paying Agent") which pays or credits the interest, a 25% withholding tax, plus a 5.5% solidarity surcharge thereon, resulting in a total withholding tax charge of %, is levied on the interest payments. The applicable withholding tax rate is in excess of the aforementioned rate if church tax is collected for the individual investor by way of withholding which, in the case of interest received after 31 December 2014, is provided for as a standard procedure unless the holder has filed a blocking notice (Sperrvermerk) with the German Federal Central Tax Office (Bundeszentralamt für Steuern). Capital gains from the sale or redemption of the Notes are also subject to the 25% withholding tax, plus a 5.5% solidarity surcharge thereon, if the Notes are kept or administered by a Domestic Paying Agent effecting the sale or redemption from the time of their acquisition. If the Notes were sold or redeemed after being transferred to a securities deposit account with a Domestic Paying Agent, 25% withholding tax (plus solidarity surcharge thereon) would be levied on 30% of the proceeds from the sale or the redemption, as the case may be, unless the investor or the previous depository bank was able and allowed to prove evidence for the investor's actual acquisition costs to the current Domestic Paying Agent. The applicable withholding tax rate is in excess of the aforementioned rate if church tax is collected for the individual investor by way of withholding which, in the case of interest received after 31 December 2014, is provided for as a standard procedure unless the holder has filed a blocking notice with the German Federal Central Tax Office. German resident investors holding the Notes as business assets Taxation of income from the Notes If the Notes are held as business assets (Betriebsvermögen) by an individual or corporate investor which is tax resident in Germany (i.e., a corporation with its statutory seat or place of management in Germany), interest income and capital gains from the Notes are subject to personal income tax at individual progressive rates or corporate income tax (plus a 5.5% solidarity surcharge thereon and church tax, if applicable) and, in general, trade tax. The effective trade tax rate depends on the applicable trade tax factor (Gewerbesteuer-Hebesatz) of the relevant municipality where the business is located. In case of individual investors the trade tax may, however, be partially or fully creditable against the investor's personal income tax liability depending on the applicable trade tax factor and the investor's particular circumstances. Capital losses from the sale or redemption of the Notes should generally be tax-recognised and may generally be offset against other income. Withholding tax If the Notes are kept or administered by a Domestic Paying Agent which pays or credits the interest, a 25% withholding tax, plus a 5.5% solidarity surcharge thereon, resulting in a total withholding tax charge of %, is generally levied on the interest payments. The applicable withholding tax rate is in excess of the aforementioned rate if church tax is collected for the individual investor by way of

130 130 withholding which, in the case of interest received after 31 December 2014, is provided for as a standard procedure unless the holder has filed a blocking notice with the German Federal Central Tax Office. No withholding is generally required on capital gains from the disposal or redemption of the Notes which is derived by German resident corporate investors and, upon application, by individual investors holding the Notes as assets of a German business, subject to certain requirements. Any capital losses incurred from the disposal or redemption of the Notes will not be taken into account for withholding tax purposes. The withholding tax does not satisfy the investor's personal or corporate income tax liability with respect to the Notes. The income from the Notes will have to be included in the investor's personal or corporate income tax return. Any German withholding tax (including surcharges) is generally fully creditable against the investor's personal or corporate income tax liability or refundable, as the case may be. Non-German tax resident Investors Income derived from the Notes by investors who are not tax resident in Germany is in general not subject to German income taxation, and no withholding tax shall be withheld, unless (i) the Notes are held as business assets of a German permanent establishment of the investor or by a permanent German representative of the investor or (ii) the income derived from the Notes does otherwise constitute German source income (such as income from the letting and leasing of certain property located in Germany) or (iii) the income is paid by a Domestic Paying Agent against presentation of the Notes or interest coupons (so-called over-the-counter transaction, Tafelgeschäfte). If the income derived from the Notes is subject to German taxation according to (i) through (iii) above, the income is subject to German income taxation and withholding tax similar to that described above for German tax residents. Under certain circumstances, foreign investors may benefit from tax reductions or tax exemptions under applicable double tax treaties (Doppelbesteuerungsabkommen) entered into with Germany. Taxation if the Notes qualify as equity or equity-like If the Notes qualify as equity or equity-like from a German tax perspective, the tax treatment for German resident investors holding the Notes as private assets should be the same as described above. For German resident investors holding the Notes as business assets, capital gains and interest income might be partly tax-exempt according to section 8b German Corporate Income Tax Act (Körperschaftsteuergesetz) and section 3 no 40 German Income Tax Act (Einkommensteuergesetz), respectively provided, however, that the partial tax exemption under section 8b German Corporate Income Tax Act with respect to interest income under the Notes will in any event only be applicable if a relevant investor holds a participation of at least 10% in the Issuer; capital losses might be non-deductible. For non-german tax resident investors the tax treatment should generally be the same as described above. Only in case of payments made by the Guarantor, non-german tax resident investors might become subject to tax with regard to interest income and subject to further requirements also with regard to capital gains from the Notes and German withholding tax might be levied on interest income irrespective of whether or not the interest is paid out by a Domestic Paying Agent. Inheritance tax and gift tax The transfer of the Notes to another person by way of gift or inheritance may be subject to German gift or inheritance tax, respectively, if inter alia (i) the testator, the donor, the heir, the donee or any other acquirer had his residence, habitual abode or, in case of a corporation, association (Personenvereinigung) or estate (Vermögensmasse), has its seat or place of management in Germany at the time of the transfer of property, (ii) except as provided under (i), the testator's or donor's Notes belong to business assets attributable to a permanent establishment or a permanent representative in Germany. Special regulations may apply to certain German expatriates.

131 131 Prospective holders are urged to consult with their tax advisor to determine the particular inheritance or gift tax consequences in light of their particular circumstances. Other taxes The purchase, sale or other disposal of the Notes does not give rise to capital transfer tax, value added tax, stamp duties or similar taxes or charges in Germany. However, under certain circumstances entrepreneurs may choose liability to value added tax with regard to the sales of the Notes to other entrepreneurs which would otherwise be tax exempt. Net wealth tax (Vermögensteuer) is, at present, not levied in Germany. Luxembourg The comments below are intended as a basic overview of certain withholding tax consequences in relation to the purchase, ownership and disposal of the Notes under Luxembourg law. Persons who are in any doubt as to their tax position should consult their own tax adviser. Withholding tax Under Luxembourg tax law currently in effect, there is no Luxembourg withholding tax on payments of interest (including accrued but unpaid interest) made to the holders of the Notes nor is any Luxembourg withholding tax payable upon repayment of principal in case of reimbursement, redemption, repurchase or exchange of the Notes (except where the law of 23 December 2005 applies see below). In accordance with the law of 23 December 2005 as amended by the law of 17 July 2008 on the introduction of a withholding tax on certain interest payments on savings income, interest payments made by Luxembourg paying agents (defined in the same way as in the Savings Directive) to Luxembourg resident individual or to certain residual entities that secure interest payments on behalf of such individuals (unless such entities have opted either to be treated as UCITS recognised in accordance with the Council Directive 85/611/EEC, as replaced by the Council Directive 2009/65/EC, or for the exchange of information regime) are subject to a 10% withholding tax. Responsibility for the 10% withholding tax will be assumed by the Luxembourg paying agent. European Savings Directive On 3 June 2003 the European Union Council adopted the directive 2003/48/EC regarding the taxation of savings income (the "Savings Directive"). The Savings Directive is effective as from 1 July Under the Savings Directive each Member State is required to provide to the tax authorities of another Member State details of payments of interest or other similar income paid by a person within its jurisdiction to an individual resident in that other Member State. Austria and Luxembourg were instead allowed to apply a withholding system for a transitional period in relation to such payments, deducting tax at a current rate of 35%. The transitional period terminates at the end of the first fiscal year following an agreement by certain non-eu countries to the exchange of information relating to such payments (the ending of such transitional period being dependent upon the conclusion of certain other agreements relating to information exchange with certain other countries). However, Belgium has elected to switch to the exchange of information system with effect from 1 January In Germany, provisions for implementing the Savings Directive have been enacted by legislative regulations of the federal government (Zinsinformationsverordnung). These provisions apply as from 1 July As for Luxembourg, the withholding tax system under the Savings Directive has been replaced in favour of the automatic exchange of information with effect as from 1 January 2015 pursuant to the law of 25 November Similar provisions may apply under agreements entered into pursuant to the Savings Directive in respect of interest payments made by persons within the jurisdiction of certain territories, not being Member States (e.g. Switzerland) to individuals resident in Member States, and, in some cases, vice versa. On 24 March 2014, the European Council adopted a directive amending and broadening the scope of the requirements described above. In particular, the changes expand the range of payments covered by the Savings Directive to include certain additional types of income, and widen the range of recipients payments to whom are covered by the Savings Directive, to include certain other types of entities and legal arrangements. Member States are required to implement national legislation giving

132 132 effect to these changes by 1 January 2016 (which national legislation must apply from 1 January 2017). Prospective holders who are in any doubt as to their position should consult their own tax advisers. Holders who are individuals should note that the Issuer will not pay additional amounts under 8 of the Terms and Conditions in respect of any withholding tax imposed as a result thereof. U.S. Foreign Account Tax Compliance Withholding TO ENSURE COMPLIANCE WITH TREASURY DEPARTMENT CIRCULAR 230, PROSPECTIVE PURCHASERS ARE HEREBY NOTIFIED THAT: (A) ANY DISCUSSION OF U.S. FEDERAL INCOME TAX ISSUES IN THIS OFFERING CIRCULAR IS NOT INTENDED OR WRITTEN TO BE RELIED UPON, AND CANNOT BE RELIED UPON, BY ANY PERSON FOR THE PURPOSE OF AVOIDING PENALTIES THAT MAY BE IMPOSED ON SUCH PERSON UNDER THE INTERNAL REVENUE CODE; (B) SUCH DISCUSSION IS INCLUDED HEREIN BY THE ISSUER IN CONNECTION WITH THE PROMOTION OR MARKETING (WITHIN THE MEANING OF CIRCULAR 230) BY THE ISSUER OF THE TRANSACTIONS OR MATTERS ADDRESSED HEREIN; AND (C) PROSPECTIVE PURCHASERS SHOULD SEEK ADVICE BASED ON THEIR PARTICULAR CIRCUMSTANCES FROM AN INDEPENDENT TAX ADVISER. The foreign account tax compliance provisions of the Hiring Incentives to Restore Employment Act of 2010 ("FATCA") impose a withholding tax of 30% on (i) certain U.S. source payments and (ii) payments of gross proceeds from the disposition of assets that produce U.S. source interest or dividends made to persons that fail to meet certain certification or reporting requirements. In order to avoid becoming subject to this withholding tax, non-u.s. financial institutions must enter into agreements with the IRS ("IRS Agreements") (as described below) or otherwise be exempt from the requirements of FATCA. Non-U.S. financial institutions that enter into IRS Agreements or become subject to provisions of local law ("IGA legislation") intended to implement an intergovernmental agreement entered into pursuant to FATCA ("IGAs"), may be required to identify "financial accounts" held by U.S. persons or entities with substantial U.S. ownership, as well as accounts of other financial institutions that are not themselves participating in (or otherwise exempt from) the FATCA reporting regime. In addition, in order (a) to obtain an exemption from FATCA withholding on payments it receives or (b) to comply with any applicable IGA legislation, a financial institution that enters into an IRS Agreement or is subject to IGA legislation may be required to (i) report certain information on its U.S. account holders to the government of the United States or another relevant jurisdiction and (ii) withhold 30% from all, or a portion of, certain payments made to persons that fail to provide the financial institution information, consents and forms or other documentation that may be necessary for such financial institution to determine whether such person is compliant with FATCA or otherwise exempt from FATCA withholding. Under FATCA, withholding is required with respect to payments to persons that are not compliant with FATCA or that do not provide the necessary information, consents or documentation made on or after (i) 1 July 2014 in respect of certain U.S. source payments, (ii) 1 January 2017, in respect of payments of gross proceeds (including principal repayments) on certain assets that produce US source interest or dividends and (iii) 1 January 2017 (at the earliest) in respect of "foreign passthru payments" and then, for "obligations" that are not treated as equity for U.S. federal income tax purposes, only on such obligations that are issued or materially modified on or after the later (a) 1 July 2014, and (b) in the case of an obligation that pays only foreign passthru payments, the date that is six months after the date on which the final regulations applicable to "foreign passthru payments" are filed in the Federal Register. The application of FATCA to interest, principal or other amounts paid with respect to the Notes and the information reporting obligations of the Issuer and other entities in the payment chain is still developing. In particular, a number of jurisdictions have entered into, or have announced their intention to enter into, intergovernmental agreements (or similar mutual understandings) with the United States, which modify the way in which FATCA applies in their jurisdictions. The full impact of such agreements (and the laws implementing such agreements in such jurisdictions) on reporting and withholding responsibilities under FATCA is unclear. The Issuer and other entities in the payment chain may be required to report certain information on their U.S. account holders to government authorities in their respective jurisdictions or the United States in order (i) to obtain an exemption from FATCA withholding on payments they receive or (ii) to comply with applicable law in their jurisdiction. It is not yet certain how the United States and the jurisdictions which enter into

133 133 intergovernmental agreements will address withholding on "foreign passthru payments" (which may include payments on the Notes) or if such withholding will be required at all. Whilst the Notes are in global form and held within the Clearing System, it is expected that FATCA will not affect the amount of any payments made under, or in respect of, the securities by the Issuer, any paying agent and the Clearing System, given that each of the entities in the payment chain from (but excluding) the Issuer and to (but including) the Clearing System is a major financial institution whose business is dependent on compliance with FATCA and that any alternative approach introduced under an intergovernmental agreement will be unlikely to affect the securities. FATCA IS PARTICULARLY COMPLEX AND ITS APPLICATION TO THE ISSUER, THE NOTES AND THE HOLDERS IS UNCERTAIN AT THIS TIME. EACH HOLDER SHOULD CONSULT ITS OWN TAX ADVISER TO OBTAIN A MORE DETAILED EXPLANATION OF FATCA AND TO LEARN HOW THIS LEGISLATION MIGHT AFFECT EACH HOLDER IN ITS PARTICULAR CIRCUMSTANCE.

134 134 SUBSCRIPTION AND SALE OF THE NOTES General Pursuant to the Subscription Agreement entered into on 22 January 2015 among the Issuer, the Guarantor and the Lead Manager, the Lead Manager has agreed, subject to certain conditions, to subscribe, or to procure subscriptions, for the Notes. The Issuer has agreed to pay the Lead Manager a combined management, underwriting and placement commission as agreed between the parties to the Subscription Agreement. The Issuer has further agreed to reimburse the Lead Manager for certain of its expenses in connection with the issue of the Notes. The Co-Manager is not party to the Subscription Agreement. In the Subscription Agreement, the Issuer and the Guarantor have made certain representations and warranties in respect of its legal and financial matters. The Subscription Agreement entitles the Lead Manager to terminate its obligations thereunder in certain circumstances prior to payment of the purchase price of the Notes. The Issuer and the Guarantor have agreed to indemnify the Lead Manager against certain liabilities in connection with the offer and sale of the Notes. Selling Restrictions General There are no transfer and trading restrictions in relation to the listing and the trading of the Notes on the Euro MTF market of the Luxembourg Stock Exchange. The Notes will be transferred in accordance with their terms and conditions (see "TERMS AND CONDITIONS OF THE NOTES 2 Currency Aggregate Principal Amount, Denomination, Form, Clearing System"). Neither the Issuer nor the Guarantor nor the Lead Manager has made any representation that any action will be taken in any jurisdiction by the Lead Manager, the Issuer or the Guarantor that would permit a public offering of the Notes, or possession or distribution of the Offering Circular (in preliminary, proof or final form) or any other offering or publicity material relating to the Notes (including roadshow materials and investor presentations), in any country or jurisdiction where action for that purpose is required. The Lead Manager has represented and agreed that it will comply to the best of its knowledge and belief in all material respects with all applicable laws and regulations in each jurisdiction in which it sells Notes. It will also ensure that no obligations are imposed on the Issuer or the Guarantor in any such jurisdiction as a result of any of the foregoing actions. The Issuer, the Guarantor and the Lead Manager will have no responsibility for, and the Lead Manager will obtain any consent, approval or permission required by it for, the sale of Notes under the laws and regulations in force in any jurisdiction to which it is subject or in or from which it makes any sale. The Lead Manager is not authorised to make any representation or use any information in connection with the issue, subscription and sale of the Notes other than as contained in, or which is consistent with, the Offering Circular or any amendment or supplement to it. United States of America and its Territories The Lead Manager has acknowledged that the Notes and the Subordinated Guarantee have not been and will not be registered under the U.S. Securities Act of 1933 (as amended) (the "Securities Act") and may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The Lead Manager has represented that it has not offered or sold, and has agreed that it will not offer or sell, any Notes constituting part of its allotment within the United States except in accordance with Rule 903 of Regulation S under the Securities Act. Accordingly, neither it, its affiliates nor any persons acting on its or their behalf have engaged or will engage in any directed selling efforts with respect to the Notes or the Subordinated Guarantee. Terms used in this paragraph have the meanings given to them by Regulation S. In addition, the Lead Manager has represented, warranted and agreed that, except to the extent permitted under U.S. Treasury Regulations section (c)(2)(i)(D) (the "D Rules"): (a) it has not offered or sold Notes, and during the restricted period shall not offer or sell Notes, directly or indirectly to a United States person or to a person who is within the United States or its possessions, and it has not delivered and shall not deliver within the United States or its possessions Notes that are sold during the restricted period;

135 135 (b) it has and throughout the restricted period it shall have in effect procedures reasonably designed to ensure that its employees or agents who are directly engaged in selling Notes are aware that the Notes may not be offered or sold during the restricted period to a United States person or to a person who is within the United States or its possessions, except as permitted by the D Rules; (c) if it is a United States person, it is acquiring the Notes for purposes of resale in connection with their original issuance and not for the purpose of resale directly or indirectly to a United States person or a person within the United States or its possessions and it shall acquire or retain Notes for its own account only in accordance with the requirements of U.S. Treasury Regulations section (c)(2)(i)(D)(6); (d) with respect to each affiliate that acquires Notes from it for the purpose of offering or selling such Notes during the restricted period, it either (i) repeats and confirms the representations contained in clauses (a), (b) and (c) of this paragraph on behalf of such affiliate or (ii) agrees that it shall obtain from such affiliate for the benefit of the Issuer the representations contained in Clauses (a), (b) and (c) of this paragraph; and (e) it shall obtain for the benefit of the Issuer the representations and agreements contained in clauses (a), (b), (c) and (d) of this paragraph from any person other than its affiliate with whom it enters into a written contract, as defined in U.S. Treasury Regulations section (c)(2)(i)(D)(4), for the offer or sale of Notes during the restricted period. Terms used in this paragraph have the meanings given to them by the U.S. Internal Revenue Code of 1986 and Treasury Regulations thereunder, including the D Rules. United Kingdom of Great Britain and Northern Ireland The Lead Manager has represented and agreed that, (a) it has only communicated or caused to be communicated and will only communicate or cause to be communicated any invitation or inducement to engage in investment activity (within the meaning of Section 21 of the Financial Services and Markets Act 2000, as amended ("FSMA")) received by it in connection with the issue or sale of any Notes in circumstances in which Section 21(1) of the FSMA does not apply to the Issuer; and (b) it has complied and will comply with all applicable provisions of the FSMA with respect to anything done by it in relation to the Notes in, from or otherwise involving the United Kingdom. As used herein, "United Kingdom" means the United Kingdom of Great Britain and Northern Ireland.

136 136 GENERAL INFORMATION Subject of this Offering Circular This Offering Circular relates to the 250,000,000 Undated Resettable Fixed Rate Subordinated Notes issued by VTG Finance S.A., guaranteed on a subordinated basis by VTG AG. Clearing and Settlement The Notes have been accepted for clearing through Euroclear and Clearstream, Luxembourg. The Notes have been assigned the following securities codes: ISIN: XS , Common Code: , WKN: A1ZVCJ. Listing and Admission to Trading Application has been made to the Luxembourg Stock Exchange to list the Notes on its official list and to admit the Notes to trading on the Euro MTF operated by the Luxembourg Stock Exchange, which is a multilateral trading facility for the purposes of the Market and the Financial Instruments Directive 2004/39/EC, and therefore a non-eu-regulated market. Trend Information and Significant Changes There has been no material adverse change in the prospects of the Guarantor since 31 December Publication of Consolidated Financial Statements Future consolidated financial statements of VTG Group will continue to be prepared and published at the level of the Guarantor. Expenses related to Admission to Trading The Issuer estimates that the amount of expenses related to admission to trading of the Notes will be approximately 2,500,000. Yield to Maturity The yield in respect of the Notes from the Issue Date to the First Call Date is 5.00% per annum, calculated on the basis of the issue price of the Notes. Such yield is calculated in accordance with the ICMA (International Capital Markets Association) method. Interests of Natural and Legal Persons involved in the Issue/Offer The Lead Manager and its affiliates have engaged, and may in the future engage, in investment banking or commercial banking transactions with, and may perform services for VTG Group and their members in the ordinary course of business. The Lead Manager and its affiliates may also make investment recommendations or publish or express independent research views in respect of such securities or financial instruments and may hold, or recommend to clients that they acquire, long or short positions in such securities and instruments. Authorisation The creation and issue of the Notes has been authorised by a resolution of the board of managing directors of the Issuer on 20 January The granting of the Subordinated Guarantee has been authorized by the Executive Board of the Guarantor on 5 January 2015 with the approval of the Supervisory Board of the Guarantor on 5 January Use of Proceeds In connection with the offering of the Notes, the Issuer expects to receive net proceeds of approximately 248,240,000, after deducting expenses and commissions (which are expected to amount up to 1% of the aggregate principal amount of the Notes (excluding the Notes purchased by Mr Goer)). The Issuer will apply the net proceeds towards the partial redemption of the Vendor Loan Note issued in connection with the AAE Acquisition as set out under the section "AAE Acquisition Acquisition Structure" of this Offering Circular (see this section also for more details on the redemption of the Vendor Loan Note) and for general corporate purposes of VTG Group.

137 137 Documents on Display For so long as the Notes are outstanding, copies of the following documents are available for viewing at the website of the Luxembourg Stock Exchange ( (for the avoidance of doubt, the content of this website does not form part of this Offering Circular): (i) any documents incorporated by reference; (ii) a copy of this Offering Circular. Copies of these documents may be obtained free of charge at the specified office of the Issuer during normal business hours on any weekday. Copies of the articles of association of the Issuer and the Guarantor as well as copies of the Subordinated Guarantee will be available for collection at the offices of the Issuer during normal business hours. Copies of future financial statements of the Issuer and the Guarantor will be available for collection at the offices of the Issuer during normal business hours.

138 138 DOCUMENTS INCORPORATED BY REFERENCE The following documents have been incorporated by reference in, and form part of, this Offering Circular: 1. VTG Group Annual Report 2012 (English version) Group Management Report page 38 to 76 Consolidated Financial Statements pages 77 to 139 Consolidated income statement page 78 Consolidated statement of comprehensive income page 79 Consolidated Balance sheet pages 80 to 81 Consolidated statement of changes in equity page 82 Consolidated Cash flow statement page 83 Notes to the Consolidated Financial Statements pages 84 to 139 Independent Auditor's Report page VTG Group Annual Report 2013 (English version) Group Management Report page 26 to 62 Group Consolidated Financial Statements pages 63 to 124 Consolidated income statement page 64 Consolidated statement of comprehensive income page 65 Consolidated Balance sheet pages 66 to 67 Consolidated statement of changes in equity page 68 Consolidated Cash flow statement page 69 Notes to the Consolidated Financial Statements pages 70 to 124 Independent Auditors Report page VTG Group Interim Report as of 30 September 2014 (English version) Interim Group Management Report pages 4 to 12 Consolidated Interim Financial Statements pages 13 to 34 Consolidated income statement pages 14 to 15 Consolidated statement of comprehensive income pages 16 to 17 Consolidated Balance sheet pages 18 to 19 Consolidated statement of changes in equity page 20 Consolidated Cash flow statement page 21

139 139 Selected explanatory information in the condensed Notes to the consolidated interim financial statements pages 22 to 34 Any information not listed in the cross reference list but included in the documents incorporated by reference is given for information purposes only. The documents incorporated by reference are available on the website of the Luxembourg Stock Exchange ( and the website of VTG ( as long as any Notes are listed on the official list of the Luxembourg Stock Exchange and the rules of such stock exchange so require.

140 HISTORIC FINANCIAL INFORMATION RELATING TO AAE GROUP TABLE OF CONTENTS Audited Consolidated Financial Statements of AAE Ahaus Alstätter Eisenbahn Cargo AG, Baar, Switzerland, for the year ended 31 December 2013 Report of the Statutory Auditor on the Consolidated Financial Statements to the General Meeting of Shareholders... A-1 Consolidated Balance Sheet... A-4 Consolidated Income Statement... A-6 Consolidated Statement of Profit and Loss and other Comprehensive Income... A-7 Consolidated Statement of Changes in Equity... A-8 Consolidated Statement of Cash Flows... A-9 Notes to the consolidated financial statements... A-11 Audited Consolidated Financial Statements of Ortanio Holdings Limited, Tortola, British Virgin Islands, for the year ended 31 December 2013 Report of the Independent Auditors on the Consolidated Financial Statements... A-43 Consolidated Balance Sheet... A-45 Consolidated Income Statement... A-47 Consolidated Statement of Profit and Loss and other Comprehensive Income... A-48 Consolidated Statement of Changes in Equity... A-49 Consolidated Statement of Cash Flows... A-50 Notes to the consolidated financial statements... A-52 Audited Consolidated Financial Statements of AAE Ahaus Alstätter Eisenbahn Cargo AG, Baar, Switzerland, for the year ended 31 December 2012 Report of the Statutory Auditor on the Consolidated Financial Statements to the General Meeting of Shareholders... A-78 Consolidated Balance Sheet... A-81 Consolidated Income Statement... A-83 Consolidated Statement of Comprehensive Income... A-84 Consolidated Statement of Changes in Equity... A-85 Consolidated Statement of Cash Flows... A-86 Notes to the consolidated financial statements... A-88 Audited Consolidated Financial Statements of Ortanio Holdings Limited, Tortola, British Virgin Islands, for the year ended 31 December 2012 Report of the Independent Auditors on the Consolidated Financial Statements... A-118 Consolidated Balance Sheet... A-120 Consolidated Income Statement... A-122 Consolidated Statement of Comprehensive Income... A-123 Consolidated Statement of Changes in Equity... A-124 Consolidated Statement of Cash Flows... A-125 Notes to the consolidated financial statements... A-127 A-0

141 AAEAhaus Alstätter Eisenbahn Cargo AG, Baar Report of the Statutory Auditor on theconsolidated FinancialStatements to the GeneralMeetingof Shareholders ConsolidatedFinancialStatements 2013 KPMG AG Zug, April10, 2014 Ref. EW A-1

142 KPMG AG Audit Central Switzerland Landis + Gyr-Strasse 1 P.O. Box 4427 Telephone CH-6300 Zug CH-6304 Zug Fax Internet Report ofthestatutoryauditorto thegeneral Meetingof Shareholders of AAEAhaus Alstätter EisenbahnCargo AG,Baar Report of thestatutory AuditorontheConsolidated Financial Statements As statutory auditor, we have audited the accompanying consolidated financial statements of AAE Ahaus Alstätter Eisenbahn Cargo AG,which comprise the consolidated balance sheet, consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity, consolidated statement of cash flows and notes for the year ended December31, The board of directors is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) and the requirements of Swiss law. This responsibility includes designing, implementing and maintaining an internal control system relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. The board of directors is further responsible for selecting and applying appropriate accounting policies and making accountingestimates thatare reasonablein thecircumstances. Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Swiss law and Swiss Auditing Standards as well as International Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The p includingthe assessment ofthe risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers the internal on and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not forthe purpose of expressing an opinion on the effe also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made, as well as evaluating the overall presentation of the consolidated financial statements. We believethat theaudit evidencewe have obtained is sufficient and appropriateto provideabasis for our qualified audit opinion. Basisfor Qualified Opinion The Company does not comply with the IAS 17, paragraph 56, regarding disclosure requirements for lessorswith respectto operatingleases (referto note30). KPMG AG/SA, a Swiss corporation, is a subsidiary of KPMG Holding AG/SA, which is a subsidiary of KPMG Europe LLP and a member of the KPMG network of independent Member of the Swiss Institute of Certified Accountants and Tax Consultants legal entity. A-2

143 AAE AhausAlstätterEisenbahnCargoAG, Baar QualifiedOpinion In our opinion, except for the effect of the matter described in the Basis for Qualified Opinion paragraph, the consolidated financial statements give atrue and fair view of the consolidated financial position of the Company as at December 31, 2013 and of its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards and comply with Swiss law. Report onotherlegal Requirements We confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act (AOA) and independence (article 728 CO) and that there are no circumstances incompatible with our independence. In accordance with article 728a paragraph 1item 3CO and Swiss Auditing Standard 890, we confirm that an internal control system exists, which has been designed for the preparation of consolidated financial statementsaccording to theinstructions oftheboardofdirectors. We recommend that theconsolidatedfinancial statements submitted to you beapproved. KPMGAG ErikF.J.Willems Licensed Audit Expert Auditor in Charge Toni Wattenhofer Licensed Audit Expert Zug,April 10,2014 Enclosure: - Consolidated financial statements (consolidated balance sheet,consolidated income statement, consolidated statement ofcomprehensiveincome,consolidated statement ofchanges in equity, consolidated statement ofcashflowsand notes) 2 A-3

144 AAE Ahaus Alstätter Eisenbahnen Cargo AG, Baar ConsolidatedBalance Sheetas of December 31, Note ASSETS Current assets EUR ('000) EUR ('000) Cash and cash equivalents 8 17,347 10,264 Receivablesfromaffiliated companies Receivablesfromequity-accounted investees 27 1, Loanto equity-accounted investees ,822 Trade receivables 11 33,111 36,301 Finance lease receivables 1,637 1,513 Derivative financial assets Other current assets 10 4,567 5,403 Inventories 8,137 7,470 67,894 64,153 Non-current assets Aquired lease contracts 13 4,032 4,800 Loanto equity-accounted investees 27 2,222 0 Finance lease receivables 5,388 7,026 Investment in equity-accounted investees 27 6,704 10,039 Deferred taxassets 14 14,901 18,238 Tangible fixed assets , ,678 Other receivables ,003,084 1,037,154 1,070,978 1,101,307 Theconsolidated balance sheet hasto beread in conjunction with the notesto the consolidated financial statements set out on page 10 to A-4

145 AAE Ahaus Alstätter Eisenbahnen Cargo AG, Baar ConsolidatedBalance Sheetas of December 31, Note LIABILITIES ANDSHAREHOLDERS'EQUITY Current liabilities EUR ('000) EUR ('000) Interest-bearing loans andborrowings 16 86,539 65,507 Interest-bearing loans to shareholders ,000 Payablesto affiliated companies Other payablesand accruals 18 17,697 26,272 Current tax liabilites 1,109 1,161 Provisions , ,208 99,857 Non-current liabilities Interest-bearing loans andborrowings , ,716 Derivative financial liabilities 25 87, ,148 Deferred tax liabilities 14 9,769 7,979 Other long-termliabilities 0 4 Provisions , ,347 Shareholders'equity 915, ,204 Share capital 20 49,540 49,540 Share premium 12,042 12,042 Retained earningsand reserves 21 94,247 46,521 Total equity 155, ,103 Total liabilitiesandequity 1,070,978 1,101,307 Theconsolidated balance sheet hasto beread in conjunction with the notesto theconsolidatedfinancialstatementssetout on pages 10 to A-5

146 AAE Ahaus Alstätter Eisenbahnen Cargo AG, Baar Consolidated Income Statement Note EUR('000) EUR('000) INCOME RentalRevenue 187, ,269 Other operatingincome 3,194 4,163 Repair, maintenance, freight (32,277) (33,320) ManagementFees 28 (18,626) (17,917) Other operatingexpenses 22 (2,777) (3,217) EBITDA 137, ,978 Depreciation of railcars 15 (67,248) (64,701) Amortisationof acquired leasecontracts 13 (768) (768) EBIT 69,383 76,509 Financialincome 23 25,636 1,118 Financialexpenses 24 (50,025) (102,101) Share of profit of equity-accounted investees, net 27 (648) 576 PROFIT/(LOSS) BEFORE TAX 44,346 (23,898) Incometaxes 14 (5,688) 1,575 NET PROFIT/(LOSS) FOR THEYEAR ATTRIBUTABLETOSHAREHOLDERSOFTHECOMPANY 38,658 (22,323) The consolidated income statement has to be read in conjunction with the notes to theconsolidated financial statements setouton pages10 to40. 5 A-6

147 AAE Ahaus Alstätter Eisenbahnen Cargo AG, Baar Consolidatedstatement of profit and loss and other comprehensiveincome for the year endeddecember 31, EUR ('000) EUR ('000) Net profit /(loss) 38,658 (22,323) Othercomprehensive income Itemsthat are ormay be reclassifiedtoprofit or loss Effective portion ofchangesin fairvalueofcash flowhedges 10,097 (1,555) Foreign currencytranslation differences (19) (4) Income taxon othercomprehensive income (1,010) 156 Othercomprehensive income, net of tax 9,068 (1,403) Total comprehensive income attributable to shareholdersof the Company 47,726 (23,726) The consolidated statement of comprehensive income has to be read in conjunction with the notes to theconsolidatedfinancialstatementssetout on pages 10 to A-7

148 AAE Ahaus Alstätter Eisenbahnen Cargo AG, Baar Consolidatedstatementof changes inequity Share Share Translation Hedging Retained Total capital premium reserve reserve earnings Balance at January1, ,540 12, (44,693) 93, ,449 Net lossfor the year (22,323) (22,323) Othercomprehensive income Effectiveportionofchangesin fair valueofcashflow hedges, net oftax (1,399) 0 (1,399) Foreigncurrency translationdifferences 0 0 (4) 0 0 (4) Totalother comprehensive income 0 0 (4) (1,399) (22,323) (23,726) Totalcomprehensive income for the year 0 0 (4) (1,399) (22,323) (23,726) Derecognitionofcashflow hedge,net oftax , ,380 Balanceat December 31, ,540 12, (24,712) 71, ,103 Share Share Translation Hedging Retained Total capital premium reserve reserve earnings Balance at January1, ,540 12, (24,712) 71, ,103 Net gainfor the year ,658 38,658 Othercomprehensive income Effectiveportionofchangesin fair valueofcashflow hedges, net oftax , ,087 Foreigncurrency translationdifferences 0 0 (19) 0 0 (19) Totalother comprehensive income 0 0 (19) 9,087 38,658 47,726 Totalcomprehensive income for the year 0 0 (19) 9,087 38,658 47,726 Balanceat December 31, ,540 12, (15,625) 109, ,829 The consolidated statementofchanges in equityhas tobe read in conjunction with the notesto the consolidated financialstatementsset out on pages 10 to40. 7 A-8

149 AAE Ahaus Alstätter Eisenbahnen Cargo AG, Baar Consolidatedstatementof cashflows forthe year ended December31, Note CASH FLOWS FROM OPERATINGACTIVITIES EUR ('000) EUR ('000) Profit/(Loss) beforetax 44,346 (23,898) Adjusted for: Depreciation 15 67,248 64,701 Amortisationofacquired lease contracts Netchanges infair value ofother interestrate swaps 23, 24 (24,702) 17,169 Netforeignexchange loss/(gain) 23, (53) Interest income 23 (934) (1,065) Interest expense 24 50,004 84,932 Gain on sale/scrappingoffixed assets (1,606) (4,056) Share ofprofitofequity-accounted investees (576) Other non-cashitems Operatingprofit beforechanges 135, ,019 Changes in: Trade receivables 3,190 (531) Other current assets 1,383 1,959 Inventories (667) (1,053) Receivablesfromaffiliates (593) (123) Receivablesfromequity-accounted investees (1,630) (149) Other receivables longterm Payables fromaffiliates (3) (538) Other payables and accruals (7,835) 4,514 Decrease in provisions (1,551) (1,719) Cash generated fromoperations 128, ,406 Interest paid (49,372) (58,551) Interest received Financingcostspaid (438) (6,212) Income taxes paid (1,615) (1,051) Netcash inflowfromoperatingactivities 77,111 74,920 The consolidated statementof cash flowshas to be read in conjunction withthe notes to the consolidated financial statements set outon pages 10 to 40. A-9 8

150 AAE Ahaus AlstätterEisenbahnen Cargo AG,Baar Consolidatedstatementof cashflows forthe year ended December31, Note CASH FLOWS FROM INVESTINGACTIVITIES Acquisitionoftangible fixed assets 15 (43,851) (57,892) Proceeds fromsale / scrappingoffixed assets 7,382 17,687 Netcash outflowfrominvesting activities (36,469) (40,205) CASH FLOWS FROM FINANCINGACTIVITIES 21, ,935 (51,994) (605,819) (5,000) 0 Loss onterminationofderivatives 0 (23,920) Paymentsreceived under finance lease 2,135 2,135 Netcash used infinancingactivities (33,559) (50,669) NetChange in cash and cashequivalents 7,083 (15,955) Cash and cashequivalents at beginning of period 10,264 26,219 Cash and cashequivalents at end ofperiod 8 17,347 10,264 Major non-cash movements The fair value adjustment ofcashflowhedgesis included inderivative financial assets and derivative financial instruments. The consolidated statementof cash flowshas to be read in conjunction withthe notes to the consolidated financial statements set outon pages 10 to 40. A-10 9

151 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidatedfinancial statements 1. REPORTINGENTITY AAE Ahaus Alstätter Eisenbahn Cargo AG, Baar (the "Company") is acompany domiciled in Switzerland. The consolidated financial statements of the Company for the year ended December 31, 2013 comprise the Company and its subsidiaries (together referred to as the "Group" or AAE "Cargo"). The AAE Ahaus Alstätter Eisenbahn Cargo Group is the leading standardandintermodalfreightcarrental group in Europe. 2. BASISOF ACCOUNTING The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and comply with Swiss Law. The consolidated financial statements were authorised for issue by the Board of Directors to the shareholders on April 10, 2014 and are subject to approval by the Annual General Meeting of shareholders on May 21, FUNCTIONALAND PRESENTATION CURRENCY The consolidated financial statements are presented in thousand Euro, rounded to the nearest thousand. onal currency is the Euro. The reason for preparing the consolidated financial statements in Euro is that the majority of business transactions are conductedin Euro. 4. USEOF JUDGEMENTSAND ESTIMATES The preparation of the consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income, expenses and related disclosures. The estimates and underlying assumptions are based on historical experience and various other factors that are believed to be reasonableunder thecircumstances,theresults of which formthebasisofmaking the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differfromthese estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Changes in accounting estimates may be necessary if there are changes in the circumstances on which the estimate was based, or as aresult of new information or more experience. Such changes are recognisedin theperiod inwhichthe estimateisrevised. The key assumptions about the future and key sources of estimation uncertainty that have a significant risk of causing amaterial adjustment to the carrying value of assets and liabilities within the next twelve months are described in the accounting policies and notes of tangible fixed assets,inventories, trade receivables,acquired lease contracts, deferred taxand provisions. 10 A-11

152 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidatedfinancial statements 5. BASISOF MEASUREMENT The consolidated financial statements have been prepared on the historical cost basis except that derivative financial instruments arestated at their fair value. 6. CHANGESIN ACCOUNTINGPOLICIES Except for the changes below, the Group has consistently applied the accountingpolicies set out in note7toall periods presentedin these consolidatedfinancial statements. Changeinestimates During the year 2012, the Group conducted an operational review of its railcar fleet, which resulted in the change of the expected useful life of railcars. Based on management assessment and experience with older railcar types it is expected that the useful life of arailcar is now estimated 36 years (previously 30 years). As aresult, both the expected useful lives and their estimated residual values of these assets increased. The effect of these changes on actual and is EUR 17.5 million in 2012 and EUR 17.4 million for years 2013 to In 2016 the effect will decrease to approximately EUR16.6million dueto certain railcarsreachingthe end oftheir depreciablelives. Effect ofadopting new standards, amendments andinterpretations New and amended IFRSs were adopted effective January 1, The new and amended standards had no material,except for disclosurerequirementsofifrs12 (refer to note27). Adoption ofnewstandardsin 2014orlater The International Accounting Standards Board (IASB) and the IFRS Interpretations Committee (IFRIC) have issued a number of new and revised standards and interpretations that are applicable for financial periods either beginning on January 1, 2014 or later. The impact of all these standards and interpretations has not yet been systematically analyzed, but none of these standards and interpretations are expected to have asignificant impact on the consolidated financialstatements. 7. SIGNIFICANT ACCOUNTINGPOLICIES Except for the changes explained in note 6, the Group has consistently applied the accounting policiesto all periods presentedin these consolidated financial statements. Certain comparative amounts in the consolidated balance sheet have been reclassified to 11 A-12

153 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidatedfinancial statements 7. SIGNIFICANT ACCOUNTINGPOLICIES (CONTINUED) In 2013, AAE conducted an operational review ofits inventory. As aresult AAE reclassified reworkable parts from inventory to tangible fixed assets for amore appropriate reflection of their useful life that correlates directly with the useful life of the railcar fleet. The effect of this reclassification was an increase of tangible fixed assets and adecrease of inventory with an amount of TEUR 8,946. The depreciation of these re-workable parts is not expected to be materially different to the allowances recorded before. For reason of comparability the table in note 15 andthe balance sheet wereadjusted as perjanuary 1 st Basis ofconsolidation Subsidiaries Companies in which AAE Cargo has the ability to control are fully consolidated in accordance with IFRS 10. The Group controls an entity when it is exposed to, or has rights to, variable returns fromits involvement with the entity and has the abilityto affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. All companies in the Group have a December 31 year-end. A list of subsidiary companies is shown in note26. Interests in equity-accounted investees -accountedinvesteescompriseinterestsin ajoint venture. Ajoint venture is an arrangement in which the Group has joint control, whereby the Group has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities. Interests in the joint venture are accounted for using the equity method. They are recognised initially at cost, which includes transaction costs. Subsequent to initial recognition, the equity-accounted investees, until the date on which significant influence or joint control ceases. The results fromequity-accounted investeesare shownin note27. Transactionseliminatedonconsolidation Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. Unrealised gains arising from transactions with equity-accounted investees are eliminated Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment. 12 A-13

154 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidatedfinancial statements 7. SIGNIFICANT ACCOUNTINGPOLICIES (CONTINUED) Foreigncurrency Foreign currencytransactions Transactions in foreign currencies are translated to therespective functional currencies of Group entities at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated to the functional currency at theforeign exchange rate rulingat that date. Non-monetary assets and liabilities in foreign currencies that are stated at fair value are translated at the foreign exchange rate at the date values were determined. Foreign exchange differences arising on transactions arerecognised inthe income statement as financial income or financial expenses (refer to notes 23 and 24). Non-monetary items that are measured based on historical cost ina foreign currencyare nottranslated. Financial statements of foreign operations The assets and liabilities of foreign operations are translated to Euro using the exchange rate ruling at the balance sheet date. The income and expenses of foreign operations are translated into Euro at the exchange rates at the dates of the transactions. Foreign exchange differences arising on translation of foreign operations are recognized directly in other comprehensive incomeand accumulated in thetranslationreserve. Derivativefinancialinstruments The Group holds derivative financial instruments to hedge its foreign currency and interest rate risk exposures. In accordance with its treasury policy, the Group does not hold or issue derivative financial instruments for trading purposes. However, derivatives that do not qualify for hedge accounting areaccounted for as tradinginstruments. Derivatives are recognised initially at fair value; any directly attributable transaction costs are recognised inprofit orlossas they are incurred. Subsequent to initial recognition, derivativesare measured at fairvalue, andchanges thereinaregenerally recognised in profit orloss. 13 A-14

155 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidatedfinancial statements 7. SUMMARY OF SIGNIFICANTACCOUNTING POLICIES(CONTINUED) Hedging Cash flowhedges When aderivative financial instrument is designated as ahedge of the variability in cash flows of arecognised liability, the effective portion of changes in the fair value of the derivative financial instrument is recognised in other comprehensive income and presented in the hedging reserve in equity. Any ineffective portion of changes in the fair value of the derivative is recognisedin the incomestatement immediately (referto note23and 24). The amount accumulated in equity is retained in OCI and reclassified to profit or loss in the same period orperiodsduringwhichthehedged itemaffectsprofit orloss. If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated or exercised, or the designation is revoked, then hedge accounting is discontinued prospectively. If the forecast transaction is no longer expected to occur, then the amount accumulated in equityisreclassified to profit or loss. Otherderivatives Derivatives that are not designated as hedges are adjusted to fair value through the income statement (referto note23,24 and 25). Cash and cash equivalents The Group considers all highly liquid financial instruments with an original maturity of three monthsorlessfromthedate of acquisition to becash and cash equivalents. Loansand receivables These assets are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortised cost using the effective interest method, less any impairment losses. A provision for impairment is recognized on an individual basis where there is objective evidence that impairment losses have been incurred. Inventories Inventories are measured at the lower of cost and net realisable value less aspecific allowance for obsolescence. Cost is determinedusing theweighted averagemethod. 14 A-15

156 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidatedfinancial statements 7. SUMMARY OF SIGNIFICANTACCOUNTING POLICIES(CONTINUED) Tangiblefixedassets Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. If significant parts of an itemof property, plant and equipment have different useful lives, then they are accounted for as separateitems (major components) ofproperty, plant andequipment. TheprimaryassetsoftheGroup compriseoffreight railcars. Depreciation is calculated to write off the cost of items of property, plant and equipment less their estimated residual values using the straight-line method over their estimated useful lives, and is generally recognised in profit or loss. The estimated useful lives of tangible fixed assets areas follows: New railcars 36 years Wheelsets 10 years Revision 3 6years Refurbished railcars 6 18 years Re-workableparts 36 years Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjustedif appropriate. Acquiredlease contracts Acquired lease contracts are stated at cost less accumulated amortisation. Amortisation is charged to the income statement on astraight-line basis over the estimated useful life which is 20 years. Impairment Non-financial assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the Group estimates the asset's recoverable amount as the higher of fair value less cost of disposal and value-in-use and recognizes an impairment loss in the income statement for the amount by which the asset's carrying value exceeds its recoverable amount. Value-in-use is estimated as the present value of future cash flows expected to result from the use of the asset and its eventual disposal, to which an appropriate discount rate is applied. Impairment losses are deducted from the assets to which they relate. For the purposes of assessing impairment, assets are grouped at the lowest levels (i.e. by type of railcar) for which there are separately identifiable cash inflows. Considerable management judgement is necessary to estimate discounted future cash flows. Actual outcomes could vary significantly fromsuch estimates of future discountedcash flows. 15 A-16

157 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidatedfinancial statements 7. SUMMARY OF SIGNIFICANTACCOUNTING POLICIES(CONTINUED) Other payables and accruals Otherpayablesandaccruals arestated at amortisedcost using theeffective interest method. Interest-bearing loans andborrowings Interest-bearing loans and borrowings are recognised initially at fair value less any directly attributable transaction costs. Subsequent to initial recognition, interest-bearing loans and borrowings aremeasured atamortised cost usingtheeffective interest method. Provisions A provision is recognised in the balance sheet when the Group has a present legal or constructive obligation as aresult of apast event, and it is probable that an outflow of economic benefits willbe requiredtosettle the obligation. that will be required to settle the obligations as at the balance sheet date. Provisions are reviewed at each balance sheet date andadjustedto reflect thecurrent best estimate. Revenues The principle source of revenue for the Group is rental income obtained through operating leases involving the rental of freight railcars to customers throughout Europe. Revenue is recognised in the period in which it is earned. According to rental contracts certain repair and maintenance has to be handled through the Group which invoices the customer accordingly. Recharging ofthosecostsispresentedasrental income. Other operating income Other operating income consists of gain on sale of fixed assets and other operating income. Other operating income is recognised in the period in which it is earned. Repairandmaintenance costs Freight railcars are subject to apre-defined cycle of maintenance over athree to six-year period. Revision costs are capitalised and amortised over three to six years. Repair and maintenance costsare charged to theincome statement as incurred. Financialexpense Financial expense comprise interest expense on borrowings, impairment losses on financial assets, and losses on hedging instruments that are recognised in the income statement. All borrowingcosts are recognised in theincome statementusingtheeffective interestmethod. 16 A-17

158 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidated financial statements 7. SUMMARY OF SIGNIFICANTACCOUNTING POLICIES(CONTINUED) Income Tax Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent thatit relates to abusiness combination,or items recogniseddirectlyin equity. Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to tax payable or receivable in respect of previous years. It is measured using tax rates enacted or substantively enacted at the reporting date. Current tax also includesany taxarising fromdividends Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: acquired lease contracts not deductible for tax purposes, the initial recognition of assets or liabilities in atransaction that is not abusiness combination and that affect neither accounting nor taxable profit or loss, and temporary differences relating to investments in subsidiaries, associates and joint arrangements to the extent that the Group is able to control the timing of the reversal of the temporarydifferences and it is probablethat they will not reversein the foreseeable future. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using the applicable tax rate enacted at thebalance sheet date. Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probablethat future taxable profits will be available against which they can be used. Deferred tax assets are reviewed at each reporting date and are reducedto theextent thatit is no longer probablethatthe relatedtaxbenefit willberealised. Employeebenefits The Group has no employees. It is managed by AAE Ahaus Alstätter Eisenbahn AG Determinationof fairvalues Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When measuring the fair value of an asset or aliability, the Group uses market observable data as far as possible. Fairvalues arecategorised into different levels in afairvaluehierarchybasedon the inputs usedin thevaluation techniques as follows. - Level 1: quotedprices (unadjusted)inactivemarkets for identical assetsorliabilities. - Level 2: inputs other than quoted prices included in Level 1that are observable for the asset or liability, either directly (i.e.as prices) or indirectly (i.e. derived fromprices). - Level 3:inputs for the asset or liability that are not based on observable market data (unobservable inputs). 17 A-18

159 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidatedfinancial statements EUR ('000) EUR ('000) 8. CASHAND CASHEQUIVALENTS Cash at bank 17,347 10, AFFILIATED COMPANY BALANCES Receivables from affiliated companies: AAEAhaus Alstätter Eisenbahn AG AAE Ahaus AlstätterEisenbahn HoldingAG Payablestoaffiliated companies: AAEGmbH (16) (19) (16) (19) 18 A-19

160 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidatedfinancial statements EUR ('000) EUR ('000) 10. OTHERCURRENTASSETS Valueaddedtaxreceivables 1,202 2,062 Othercurrent assets 3,365 3,341 4,567 5, TRADE RECEIVABLES Tradereceivables duefromthird parties 38,755 40,814 Allowance fordoubtful debts (5,644) (4,513) 33,111 36,301 Tradereceivables aremainlydenominated in Euro. The Group s customer base mainly consists of state railway companies and transportation companies. largenumber of customersand lowlevel of historicalwrite-offs. Reconciliationofchanges in allowancefordoubtful debts BalanceatJanuary1, (4,513) (4,863) Additions madeduringtheyear (1,791) (1,299) Reversals made duringtheyear 219 1,607 Write-offsmade duringtheyear Balanceat December 31, (5,644) (4,513) 19 A-20

161 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidatedfinancial statements 12. TRADE RECEIVABLES(CONTINUED) Aging of tradereceivables EUR ('000) Gross Allowance Gross Allowance Not past due 19,508 (15) 19,798 (34) Past due 0 30 days 10,283 (165) 13,049 (62) Past due days 1,182 (28) 1,743 (158) Past due days 1,259 (30) 852 (7) Past due over 90 days 6,523 (5,406) 5,373 (4,252) Total 38,755 (5,644) 40,815 (4,513) The Group has established an allowance for impairment that represents its estimate of incurred losses in respect of trade receivables. This allowance is aspecific loss component that relates to individual exposures. 13. ACQUIREDLEASECONTRACTS The following is asummary of the activity in the balances of acquired lease contracts and accumulated amortization: EUR ('000) EUR ('000) Cost BalanceatJanuary1, 15,361 15,361 Amortization Accumulatedamortization at January1, 10,561 9,793 Amortization duringthe year ,329 10,561 Net bookvalueat December 31, 4,032 4, A-21

162 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidatedfinancial statements 14. TAXES EUR ('000) EUR ('000) a) Deferred tax assets /(liabilities) Deferredtax assets Tangiblefixed assets 15,279 14,483 Investment in equityaccountedinvestees 2,686 Fairvalueof derivative financial instruments 87, ,040 Taxlosses carried forward 43,802 45, , ,380 Deferredtaxassets 14,901 18,238 Deferredtaxliabilities Tangiblefixed assets and inventories 84,395 62,905 Acquiredleasecontracts Deferred income fromsubsidiary 3,189 5,932 Maintenance reserves 3,000 3,000 Leveraged leasetransactions 2,529 2,847 Financingcosts Investment in equity-accountedinvestees 1,742 2,391 Othertemporarydifferences 1,542 1,546 97,691 79,793 Deferred taxliabilities 9,769 7,979 Deferred tax assets and liabilities net to adeferred tax asset of TEUR 5,132 (2012: TEUR 10,259). From the movement in the year of TEUR 5,127 are TEUR 1,010 (2012: increase of TEUR 156) recognised as adecrease in equity and TEUR 4,117 (2012: income of TEUR 3,237) recognisedin theincomestatement as expense. 21 A-22

163 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidatedfinancial statements 14. TAXES (CONTINUED) EUR ('000) EUR ('000) b)incometax Currentincome tax (1,571) (1,662) Deferred taxes (4,117) 3,237 Total incometaxes inincome statement (5,688) 1,575 c) Reconciliation of effectivetax rate Profit/(loss)beforetax 44,346 (23,898) Expected incometaxes at theeffective (5,118) 2,641 taxrateof11.54%(2012:11.05 %) CapitalTax (23) (23) Taxation Luxembourg (349) (261) Effect of differenttaxin otherjurisdictions (314) (287) Under/ (over) provided inprioryears (592) (151) Changein effectivetax rate 790 (156) Othereffects (82) (188) Incometaxes (5,688) 1,575 The applicable tax rate is the aggregate of the national income tax rate of 8.5 %in 2013 and 2012 and the local income tax rate of 4.55 %in 2013 (2012: 3.92 %). In Switzerland the actual tax expense is deductiblefromtheaccounting profit, which decreasestheeffectivetaxrate. 22 A-23

164 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidatedfinancial statements 15. TANGIBLE FIXED ASSETS The tangible fixed assets of AAE Cargo comprise exclusively of railcars. Their value as of December31 is made up asfollows: EUR ('000) EUR ('000) (reclassified) Cost BalanceatJanuary1, 1,593,790 1,577,390 1 Additions for theyear 43,851 57,892 Saleof railcars and fixed assets (17,272) (30,200) Scrappingofrailcars (1,243) (280) Adjustment forfullyamortized revision/wheelsetcosts (14,836) (11,012) Balanceat December 31, 1,604,290 1,593,790 Depreciation BalanceatJanuary1, (597,112) (560,268) Depreciation chargefortheyear (67,248) (64,701) Saleof railcars and fixed assets 14,083 16,673 Scrappingofrailcars Adjustment forfullyamortized revision/wheelset costs 14,836 11,012 Balanceat December 31, (634,781) (597,112) Net bookvalueat December 31, 969, ,678 Themajorityofrailcars held bythe Groupare securityforthe borrowings (refertonote 16). In 2013 and 2012, no railcars were sold under finance lease. Finance lease receivables are presented inthe balance sheet as a separatelineitem. AAE has purchased 100 railcars in 2013 (2012: 300 railcars). At December 31, 2013, the Group has placed firmorders amountingto 400 railcars forteur34,030 (2012: nil). 1 For reclassification referto note7. 23 A-24

165 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidatedfinancial statements EUR ('000) EUR ('000) 16. INTEREST BEARING LOANS AND BORROWINGS Currentliabilities Securitised notes 11,979 12,045 Secured bankloans andinvestor notes 75,977 54,798 Deferred financingcosts (1,417) (1,336) 86,539 65,507 Non-currentliabilities Securitised notes 171, ,512 Secured bankloans andinvestor notes 544, ,887 Deferred financingcosts (4,667) (5,683) 711, , , ,223 a) Securitised notes Securitisation EuroFreight Car Finance On June 22, 2006, AAE Cargo restructured aprevious securitisation by concluding an asset backed securitisation (ABS) transaction for atotal amount of TEUR 273,775 with arating of Aa2 bearing interest at 3-month EURIBOR plus a70 bps margin and alegal maturity of Under this securitisation 7,539 railcars are financed. As of December 31, 2013 the balance was TEUR 183,577 (2012: TEUR 195,557). The outstanding amount and the interest rate are fully hedged until legal maturity. The security for the lenderscomprises apledge over the shares of AAE Railcar S.à r.l. and AAE -controlled subsidiary of future cash flow from the Cars, and an assignment of the various operative contracts relating to the operation of the Cars such that, if an Event of Default were to occur, the Security Trusteecould take over the running of the SPV on behalf of the note holders. AAE Cargo has issued no guarantee of payment onbehalf of EuroFreight CarFinanceS.A. ("SPV"). 24 A-25

166 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidatedfinancial statements 16. INTEREST BEARING LOANS AND BORROWINGS (CONTINUED) b) Secured bank loans and investor notes Themain securedbankloans andinvestor notes areas follows: AAE Wagon/AAETransport facility In 2012, AAE Cargo concluded a financing facility which refinanced an amount of TEUR 178,409 outstanding under a securitization facility initially closed in 2000 and TEUR 85,901 outstanding under arevolving credit facility. This financing facility is structured as afloating rate loan term facility with an aggregate loan amount of TEUR 303,818. The overall initial utilization amount of TEUR 286,934 consists of fully utilized term loans and partial drawdown of the credit facility. At December 31, 2013, the unused amount of the credit facility was TEUR 16,884 (2012: TEUR 16,884). The facility was structured using the existing Thetranches of debt,theirinterest marginsand legal maturityare as follows: Tranche OutstandingPrincipal Legal Maturity Marginover EURIBOR TermLoan A 86,766 90, bps TermLoan B 163, , bps Credit Facility 13,000 13, bps 262, ,951 Fromthe outstandingamount areteur15,995 (2012: TEUR15,995)current andteur 246,990 (2012:TEUR262,956) non-current. The security for the lenders comprises pledge over the shares of AAE Wagon Finance S.A., AAE Wagon S.à.r.l. and AAE Transport AG, all Special Purpose Vehicles ("SPVs") and wholly-controlled subsidiaries of AAE Cargo, which own the railcars financed by the facility (the "Cars"), the future net cash flows generated by the Cars and an assignment of the various operative contracts relating to the operation of the Cars such that, if an event of default were to occur, the security agent could take over the running of the SPV on behalf of the lenders. Cash flows generated by the SPV in excess of target debt service amounts are distributed to AAE Cargo. AAE Cargo has issued aguarantee ofpayment on behalfofthe SPVs. 25 A-26

167 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidatedfinancial statements 16. INTEREST BEARING LOANS AND BORROWINGS (CONTINUED) b) Secured bank loans andinvestor notes(continued) AAE RaiLease In 2012, AAE Cargo entered into amulti-tranche secured debt facility. The aggregate initial total amount is TEUR 290,000. Funding was provided by two private investors by way of secured notes and two banks pursuant to asecured loan. The outstandings under the notes and the loan rank pari-passu and are secured by the shares and cash flows of AAE RaiLease S.à r.l, as defined in an intercreditor agreement. AAE Cargo has issued aguarantee of payment in respectofthetotalborrowingsofaae RaiLease S.à r.l. Thetranches of debt,theirinterest marginsand legal maturityare as follows: Tranche OutstandingPrincipal Legal Maturity Marginover EURIBOR TermLoan 96, , bps Series A 100, , fixed at 4,725 % (Senior fixed ratenotes) Series B 40,000 40, bps (Senior ratenotes) Series C 40,000 40, bps (Senior ratenotes) 276, ,000 From the outstanding amount are TEUR 13,500 (2012: TEUR 13,500) current and TEUR263,000 (2012:TEUR249,500)non-current. AAE RailFleetfacility In June 2009, AAE Cargo entered into a warehouse financing facility amounting to TEUR 50,000. The interest is charged at 3-month EURIBOR plus 200 bps. As of December 31, 2013 the current liability amounted to TEUR 42,533 (2012: TEUR 44,824). AAE Cargo has issued a guarantee of payment on behalf of AAE RailFleet S.à r.l. This facility was refinanced in 2014(referto note32subsequent Events). 26 A-27

168 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidatedfinancial statements 16. INTEREST BEARING LOANS AND BORROWINGS (CONTINUED) c) Covenants The debt agreements are subject to financial covenants, which are measured quarterly. The Group was in compliance with those financial covenants at December 31, 2013 as well as duringtheinterveningperiod. If the defined ratios in the financial covenants are not met, atriggering event would occur and could result in cash retentions. Such triggers can be remediated in subsequent periods. If the Group cannot fulfil the debt service, the facility would be in default and become due and payable EUR ('000) EUR ('000) 17. INTEREST BEARINGLOANS FROM SHAREHOLDERS AAEAhaus Alstätter Eisenbahn HoldingAG 3,126 GATX Financial Corporation 1,874 Total loans fromshareholders 5,000 The subordinated loans were denominated in Euro, bearing interest at 6-month EURIBOR plus 200 basis points. They were repaid during the year 2013 in the context of the share holder transaction disclosed innote OTHERPAYABLES AND ACCRUALS Accrued interest 4,171 4,918 Suppliers 6,587 10,904 Valueaddedtaxpayables Otheraccruals 6,855 10,207 17,697 26, A-28

169 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidatedfinancial statements EUR ('000) EUR ('000) 19. PROVISIONS BalanceatJanuary1, 2,398 4,117 Provisions made duringtheyear 433 1,900 Provisions used duringtheyear (1,384) (890) Provisions reversedduring the year (600) (2,729) Balanceat December 31, 847 2,398 Expected outflowof resources -withinone year 847 1,898 -between oneto threeyears 500 -morethanthreeyears Balanceat December 31, 847 2,398 Theseprovisionsrelate mainlyto requiredrailcar modifications. 20. SHARECAPITAL Share capital comprises of 84,050 authorised, issued and fully-paid shares, as in prior year, each with anominal value of CHF 1,000. The functional currency is Euro. The historic cost of the share capital isteur 49,540.No dividends werepaidordeclaredin 2013 or theprior year. 28 A-29

170 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidatedfinancial statements 21. NON-DISTRIBUTABLERESERVES In accordance with the legal provision of the Group's jurisdiction, acertain percentage of net income is transferred to alegal reserve. This reserve of TEUR 853 (2012: TEUR 809) is not availablefordistribution. 22. OTHEROPERATINGEXPENSES EUR ('000) EUR ('000) Legal and advisorycosts (1,493) (1,571) Travelling, representation and general expense (1,231) (1,227) Other (53) (419) (2,777) (3,217) 23. FINANCIAL INCOME Interestincome Net foreign exchange gain 53 Changes infairvalueof derivatives not usedincash flow hedges 24,702 Late payment interest incomefromtradereceivables ,636 1, FINANCIAL EXPENSES Interestexpenseonfinancial liabilities (49,882) (60,783) Interestexpense shareholders loans (64) (169) Loss ontermination ofderivatives (23,920) Changes infairvalueof derivatives not usedincash flow hedges (17,169) Bankcharges (58) (60) Net foreign exchangeloss (21) (50,025) (102,101) 29 A-30

171 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidatedfinancial statements 25. FINANCIAL INSTRUMENTS Risksrelatedtofinancialinstruments Management is responsible for evaluating, monitoring and managing financial exposures. The guidelines aredefinedbyboardand arereviewed on anannual basis. The Group has exposure to credit risks, liquidity risks and market risks (currency and interest raterisks). Credit risk Management has acredit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed on all customers requiring credit over acertain amount. TheGroup does not requirecollateralinrespect offinancialassets. Interest rate swaps are with counterparties which have satisfactory credit ratings and asigned netting agreement with the Group, as required by the securitisation and floating rate note agreements. Given their satisfactory credit ratings, management does not expect any counterpartyto fail to meetitsobligations. At balance sheet date there were no concentrations of credit risk. activities are limited to the geographical region Europe. The maximumexposure to credit risk is represented by the carrying amount of each financial asset, including derivative financial instruments,inthe balance sheet as detailedon thefollowing page. 30 A-31

172 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidatedfinancial statements 25. FINANCIAL INSTRUMENTS (CONTINUED) EUR ('000) EUR ('000) Categorization offinancialassets Loans and receivables Cashand cash equivalents 17,347 10,264 Receivablesfromaffiliatedcompanies Receivablesfromjointly controlled entity 1, Loanstojointly controlled entity 2,822 2,822 Tradereceivables 33,111 36,301 Othercurrent assets, excludingderivatives 3,365 3,341 Financelease 7,025 8,539 Otherreceivableslongterm ,493 61,912 Derivativefinancial assets Foreign currencyswaps ,493 62,020 Liquidity risk Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they sufficient liquidityto meetits liabilities, under bothnormal and stressed circumstances. The Group has mainly current and non-current liabilities from interest-bearing loans and borrowings. 31 A-32

173 AAE Ahaus Alstätter Eisenbahnen Cargo AG, Baar Notesto the consolidated financialstatements 25. FINANCIAL INSTRUMENTS (CONTINUED) Liquidity risk (continued) The following arethe contractual maturities offinancialliabilities, includinginterestpaymentsand excluding the impactofnetting agreements: Carrying Contractual 6mths Morethan Amount cash flows or less 6-12 mths 2-3 years 4-5 years 5years December 31,2013 Non-derivative financial liabilities Financial liabilities carried at amortised costs Securitised notes 183, ,237 6,856 6,934 26,962 29, ,835 Secured bank loansand investor notes 620, ,532 67,275 26, , , ,376 Loansfromshareholders Other payablesand accruals 17,697 17,697 17,697 Payablestoaffiliated companies Derivative financial liabilities Interest rateswaps usedfor hedging(securitized notes) 17,362 17, ,398 2,637 11,100 Other interestrate swaps(secured bank loans) 69,881 69,881 3,269 3,591 18,387 42,604 2, ,509 1,024,725 95,723 38, , , ,341 December 31,2012 Non-derivative financial liabilities Financial liabilities carried at amortised costs Securitised notes 195, ,651 6,744 7,031 27,196 26, ,753 Secured bank loans 632, ,087 30,966 44, , , ,011 Loansfromshareholders 5,000 5, Other payablesand accruals 25,732 25,732 25,732 Payablestoaffiliated companies Derivative financial liabilities Interest rateand fxcurrencyswaps Usedfor hedging(securitized notes) 27,566 27, ,610 3,575 18,552 Other interestrate swaps(secured bank loans) 94,583 94,583 4,946 4,243 16,416 21,861 47, ,123 1,123,754 69,360 57, , , , A-33

174 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidatedfinancial statements 25. FINANCIAL INSTRUMENTS (CONTINUED) CurrencyRisk The majority of the rental income of the Group and also the borrowings are denominated in Euro. Exposure to foreign currency risks arises inthe normal courseof business. Interest raterisk Exposure to interest rate risk arises in financial instruments are used to reduce exposure to fluctuations in interest rates. While these are subject to the risk of market rates changing subsequent to acquisition, such changes are generallyoffsetby oppositeeffectson theitems beinghedged. The Group primarily utilizes variable rate debt to finance its operations. These debt obligations expose the Group to variability in interest payments due to changes in interest rates. To limit this variability, the Group has entered into receive-variable, pay-fixed or collared interest rate swaps,denominated in Euro. Thefair value of interest rate swapsisthe estimated amount that thegroup would receiveor pay to terminate the swap at the balance sheet date, taking into account current interest rates and the currentcreditworthiness ofthecounterparties to the swap. Interest rateswaps The fair values of the interest rate swaps as at December 31, 2013 resulted in aliability of TEUR87,242 (2012: TEUR 122,148). The effective part of the financial instrument is recognized in other comprehensive income and the ineffective part is recognized in the income statement immediately. 33 A-34

175 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidatedfinancial statements 25. FINANCIAL INSTRUMENTS(CONTINUED) Interest raterisk (continued) At December 31,theGrouphadthe followinginterest rate swaps outstanding: EUR ('000) Notional amount Fairvalue Notionalamount Fair value Cash flow hedges securitisation 183,577 (17,361) 195,557 (27,566) Other interest rate swaps 455,287 (69,881) 475,582 (94,582) Total 638,864 (87,242) 671,139 (122,148) Theinterest rateswapsarepresented asnon-current on the basis oftheirsettlement dates. Cash flowhedges securitisations In 2013 and 2012 the Group had interest rate swap denominated in Euro related to the EFCF securitisation (refer to note 16). The interest rate swap requires the Group onaquarterly basis to pay afixed rate and receive afloating rate equal to the three month EURIBOR set at the same interest determination dates as the related borrowings. The instrument matures in The fixed rateis %. The accumulated net loss in respect of the above hedge was directly recorded in other comprehensive income as ahedge reserve. The balance (net of tax) as of December 31, 2013 is TEUR15,625(2012: TEUR24,809). As aresult of the premature repayment of the Wagon securitisation in 2012 the related interest derivatives with anominal value of TEUR 157,355 were to be terminated prematurely and were closed out at the current market price. As of March 29, 2012 the interest derivatives had a negative market-to-market value of TEUR 23,920. Up to then the interest rate swaps were TEUR23,920were recycled to theincome statement. 34 A-35

176 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidatedfinancial statements 25. FINANCIAL INSTRUMENTS (CONTINUED) Otherinterest rateswaps In 2006,an interestrateswap was acquiredtomatchthecurrent and expected cash flowinthe warehousefinancingfacility granted atafloatinginterestrate (based on EURIBOR 3month) with afinalmaturityin 2019,ononesideand thecash flow of therelatedborrowingat a referencerateandwith an identical maturity. This derivative instrument allowsthe Groupto participateinlowerinterest rates within arange between 2.54%and 5.29 %. In 2007, the Group entered into an additional derivative instrument to hedge the interest rate risk of current and expected debt as well as potential debt as a result of expected future growth of the Group. Although provided by two individual banks, the terms and conditions of the two swap agreements are identical. AAE Cargo receives a floating rate and pays a fixed rate with a maximum of 4.9 % p.a. on the notional amount based on a calculation which allows the Group to participate in lower interest rates within a range. These derivatives are not designated as hedges and therefore the fair value adjustments are directlyrecordedintheincome statement. Sensitivity analysis At thereportingdate theinterestrateprofileofthegroup's interest-bearing financial instruments was: EUR ('000) EUR ('000) Fixed instruments Financial assets 9,847 11,361 Financial liabilities (101,887) (121,433) (92,040) (110,072) Variablerate instruments Financial assets 17,347 10,264 Financial liabilities (702,666) (713,809) (685,319) (703,545) 35 A-36

177 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidatedfinancial statements 25. FINANCIAL INSTRUMENTS (CONTINUED) Interest raterisk (continued) Fairvalue sensitivity analysis forfixed rateinstruments The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss, and the Group does not designate derivatives (interest rate swaps) as hedging instruments under afair value hedge accounting model. Therefore achange in interest rates at thereportingdatewouldnot affect theincome statement. Cashflow sensitivityanalysisforvariable rateinstruments Group has entered into pay fixed or collared interest rate, receive floating. Due to lower than expected fleet growth, the notional hedges and the current debt are not perfectly matched, making the gap between the two sensitive to changes in interest rates. An increase of 100 basis points in interest rates at the reporting date would have an annualized positive impact of TEUR454 (2012: TEUR 360) on the income statement. Adecrease of 100 basis points in interest rateswould haveanannualizednegativeimpact ofteur574 (2012:TEUR429). Fairvalueversuscarrying amounts The carrying amount of the financial liabilities carried at amortised cost approximates fair value, except for fixed interest-bearing loans and borrowings with carrying amounts of TEUR101,887 (2012: TEUR 121,433), where fair values approximate TEUR 123,700 (2012: TEUR146,022). For financial payables with aremaining life of less than one year, the carrying amount is deemed to reflectthefairvalue. The carrying amount of financial assets not carried at fair value approximates fair values. For financial receivables with aremaining life of less than one year, the carrying amounts are deemed to reflect fair values. Fairvaluehierarchy The derivative financial assets and liabilities carried at fair value qualify as level two instruments based on the fair value hierarchy set out under IFRS 7. Such fair values have been calculated using externally observable data (i.e. spot and swap rates published) and applying them to the discounted cash flow analysis and option-pricing models. The calculations performed are therefore making maximum use of market inputs and relying as little as possible on entity-specificinputs. The fair values of the derivative financial assets amount to TEUR nil (2012: TEUR 108) as the underlying contract of the foreign currency swap expired in The fair values of the derivativefinancial liabilities amount toteur87,243 (2012:TEUR122,148). 36 A-37

178 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidatedfinancial statements 25. FINANCIAL INSTRUMENTS (CONTINUED) Interest raterisk (continued) CapitalManagement The Board's policy is to maintain astrong capital base so as to sustain future development of the business. The Board of Directors monitors the return on equity, which the Group defines as net operating income divided by average total shareholders' equity, excluding the effects of any fair value derivativeadjustments. The Board seeks to maintain abalance between the higher returns that might be possible with higher levels of borrowings and the advantages and security afforded by a sound capital position. The Group's long-term goal is to achieve areturn on equity of at least 10 %. The calculation does not consider fair value changes of derivative instruments. In 2013, the return was 7.8 %(2012: -3.1 %). In comparison the weighted average interest expense on interestbearingborrowings (excludingliabilities with imputedinterest) was6.75%(2012: 7.22 %). There wereno changes inthegroup's approachto capitalmanagement duringtheyear. Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements. 26. SUBSIDIARIES The subsidiaries, which were all active in the freight railcar sector during the reporting period, are asfollows: Company Incorporated in Companyowns AAE Railcar S.à r.l. Luxembourg 100 % Euro Freight Car FinanceS.A. Luxembourg 100 % AAE Wagon S.à r.l. Luxembourg 100 % AAE Wagon Finance S.A. Luxembourg 100 % AAE AhausAlstätter Eisenbahn Transport AG Switzerland 100 % AAE Slovensko s.r.o. Slovakia 100 % AAE Freightcar S.à r.l. Luxembourg 100 % OOO AAE Russia 100 % AAE RaiLease S.à r.l. Luxembourg 100 % AAE RailFleet S.à r.l. Luxembourg 100 % 37 A-38

179 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidatedfinancial statements 27. INVESTMENT IN EQUITY-ACCOUNTED INVESTEES On July 23, 2009, AAE Ahaus Alstätter Eisenbahn Cargo AG ("Cargo") entered into ajoint venture. Cargo owns a50 %share in AX Benet s.r.o., acompany incorporated in Slovakia whose purpose is the rental and leasing of railcars in Eastern Europe. The total consideration TEUR7,647betweenthejoint venture partners was agreed and paidin On June 3, 2013, AX Benet s.r.o. purchased 550 railcars from AAE Slovensko s.r.o. for a price of TEUR 6,279. TEUR 4,500 was paid in June The outstanding amount of TEUR 1,779 is due in % of the gain from this transaction is eliminated and therefore was recorded against the investment and will be released over the next 18 years corresponding with the remaining useful life of the railcars. At year-end 2013 there are outstanding receivables of TEUR 1,779 (2012: TEUR 149) and a loan of TEUR 2,822 (2012: TEUR 2,822). The following table summarises the financial information of AX Benet as included in its own financial statements. The table also reconciles the summarised financial information to the carrying amount of AAE's interest in AX Benet EUR('000) 2012 EUR('000) Percentage ownershipinterest 50 % 50 % Revenue 11,797 12,600 Otheroperatingincome 289 1,112 Leased-In (2,901) (3,919) Repair,maintenance, othercosts (3,290) (2,853) Depreciationand amortisation (4,678) (4,041) Financialexpenses (2,668) (2,012) Incometax expense 331 (200) Share of profit of equity-accounted investees, net Adjustment fromprior yearfinancial statements (260) 201 (Loss)/profit and total comprehensiveincome(100 %) (1,297) 1, A-39

180 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidatedfinancial statements 27. INVESTMENT IN EQUITY-ACCOUNTED INVESTEES (CONTINUED) 2013 EUR('000) 2012 EUR('000) Non-current assets 63,237 53,328 Current assets (including cash and cash equivalents 2013: TEUR 2,049,2012:TEUR 225) 8,809 5,752 Non-current liabilities (includingnon-current financialliabilities excluding trade and other payables and provisions 2013: TEUR 57,242, 2012:TEUR37,895) (57,279) (37,925) Current liabilities (5,927) (11,018) Netassets (100%) 8,840 10,137 Group'sinterest in net assets of investeeat beginningof theyear 5,069 4,493 Shareof totalcomprehensive income(50 %) (648) 576 Group'sinterest in net assets of investeeat theendofyear 4,420 5,069 Elimination of unrealised profit on downstream sales (2,687) - Goodwill 4,971 4,971 Carryingamount ofinterestin investeeattheendof year 6,704 10, RELATED PARTIES The Group has related party transactions with its subsidiaries, equity-accounted investees (refer to note 27), affiliated companies, directors and shareholders. Transactions with related parties is AAE Ahaus Alstätter Eisenbahn Holding AG, a company incorporated in Switzerland. The shares previously owned by GATX Financial Corporation were purchased by AAE Ahaus Alstätter Eisenbahn Holding AG and the shareholder loans were repaid in September In 2013, AAE Cargo Group paid interest expense to its shareholders totalling to TEUR 64 (2012: TEUR 169). As of December 31, 2013 no balances of interest-bearing loans from shareholders are outstanding (2012: TEUR 5,000). During the year 2013 AAE Cargo Group paid management fees to the affiliated company AAE Ahaus Alstätter Eisenbahn AG amounting to TEUR 18,626 (2012: TEUR 17,917). The outstanding balances with affiliated companies are disclosed in note A-40

181 AAE AhausAlstätterEisenbahnCargoAG, Baar Notesto theconsolidatedfinancial statements 28. RELATED PARTIES (CONTINUED) Holding AG and amounted to TEUR 182 (2012: TEUR 178). 29. OPERATING SEGMENTS No segment reporting is required as the Group has no equity or debt securities publicly traded. Furthermore, there is only one business segment and all activities are in European countries with similar economic environments. 30. OPERATING LEASES The Group has not disclosed future minimum lease payments under non-cancellable operating leases as required by IAS 17, paragraph 56, due to the commercial sensitivity of such disclosure. 31. RISK ASSESSMENT The senior management coordinates and aligns the risk management processes and reports on risk assessment and risk management to the Board on a regular basis. Organizational and process measures designed to identify and mitigate risks at an early stage have been approved by the Board of Directors. Financial risk management is described in more detail in note 25 of the Group's consolidated financial statements. 32. SUBSEQUENTEVENTS In January 2014, AAE Cargo concluded ashort-term bridge financing facility which on the one hand refinanced an amount of TEUR41,960 still outstanding under the warehouse financing facility of AAE RailFleet initially closed in 2009 (refer to note 16 b) and on the other hand allows financing of the railcar purchase growth of the company in This financing facility is structured as a floating rate loan term facility with an aggregate loan amount of TEUR86,400. The interest is charged at 3-month EURIBOR plus 150 bps. AAE Cargo has issued a guarantee of payment on behalf of AAE RailFleet S.à r.l. There have been no other material events between December 31, 2013 and the date of the issuanceofthe audit report which would requireadjustments to or disclosurein the consolidated financialstatements. 40 A-41

182 Ortanio Holdings Limited Tortola, British VirginIslands ConsolidatedFinancialStatements forthe yearendeddecember31, 2013 KPMG AG Zug, June13,2014 Ref. EW A-42

183 KPMG AG Audit Central Switzerland Landis + Gyr-Strasse 1 P.O. Box 4427 Telephone CH-6300 Zug CH-6304 Zug Fax Internet Report oftheindependent Auditors OrtanioHoldings Limited, Tortola,BritishVirginIslands As auditor, we have audited the accompanying consolidated financial statements of Ortanio Holdings Limited, which comprise the balance sheet, income statement, statement of comprehensive income, statement of changes in equity, statement of cash flows and notes for the year ended December 31, The board of directors is responsible for the preparation of the consolidated financial statements in accordance with International Financial Reporting Standards (IFRS). This responsibility includes designing, implementing and maintaining an internal control system relevant to the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. The board of directors is further responsible for selecting and applying appropriateaccountingpolicies andmakingaccounting estimates that are reasonable inthecircumstances. Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing (ISA). Those standards require that we comply with ethical requirements and we plan and perform the audit to obtain reasonable assurance whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures includingthe assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers the internal conolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing t- ing the appropriateness of the accounting policies used and the reasonableness of accounting estimates made, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion. KPMG AG/SA, a Swiss corporation, is a subsidiary of KPMG Holding AG/SA, which is a subsidiary of KPMG Europe LLP and a member of the KPMG network of independent Member of the Swiss Institute of Certified Accountants and Tax Consultants legal entity. A-43

184 Ortanio Holdings Limited Opinion In our opinion, the consolidated financial statements for the year ended December 31, 2013 give atrue and fair view of the financial position, the results of operations and the cash flows in accordance with International Financial ReportingStandards (IFRS). KPMGAG ErikF.J.Willems Auditor in Charge Toni Wattenhofer Zug,June13, 2014 Enclosure: - Consolidated financial statements (balancesheet,incomestatement, statement ofcomprehensive income,statement of changes in equity,statement ofcash flowsand notes) A-44

185 OrtanioHoldingsLimited Consolidatedbalance sheet as of December31, Note USD ('000) USD('000) ASSETS Current assets Cashand cash equivalents 8 8,363 9,093 Financial investments 8 6,400 Trade receivables 10 1,641 2,035 Otherreceivables Inventories ,369 18,561 Non-current assets Railcars and equipment 13 60,012 56,246 Intangible assets Deferredtaxassets ,480 56,487 Total assets 71,849 75,048 The consolidated balance sheet is to be read in conjunction with the notes to the consolidated financial statements set outonpages 10 to A-45

186 OrtanioHoldingsLimited Consolidated balance sheet as of December31, Note USD ('000) USD('000) LIABILITIESAND EQUITY Currentliabilities Interest-bearing loansandborrowings 14 1,944 5,094 Interest-bearing loansfromshareholders 15 3,120 Tradepayables Otherpayables andaccruals 2,444 2,421 Currenttaxliabilities 306 4,539 11,031 Non-currentliabilities Interest-bearing loansandborrowings 14 37,929 38,383 Interest-bearing loansfrom shareholders Deferredtaxliabilities 12 4,045 2,515 Provisions 25 2,066 2,317 44,040 43,594 Total liabilities 48,579 54,625 Equity Sharecapital Sharepremium 17 16,046 16,046 Translationreserve Retainedearnings 6,902 3,494 Total equity 23,270 20,423 Total liabilities and equity 71,849 75,048 The consolidated balance sheet is to be read in conjunction with the notes to the consolidated financial statements set outonpages 10 to A-46

187 OrtanioHoldingsLimited Consolidated income statement Note USD ('000) USD('000) Rental revenue 23,291 26,281 Repair,maintenance, freight andinsurance expenses (4,574) (2,955) Personnel expenses (1,474) (1,229) Management fees (148) (147) Otheroperatingexpenses 18 (2,654) (3,733) EBITDA 14,441 18,217 Depreciation ofrailcars andequipment 13 (3,239) (2,805) Amortisation ofintangibleassets 11 (5) EBIT 11,202 15,407 Financial income ,727 Financial expenses 20 (5,974) (3,923) PROFITBEFORE TAX 5,347 14,211 Incometaxes 12 (1,939) (2,652) NETPROFITFOR THEYEAR ATTRIBUTABLETOSHAREHOLDERS 3,408 11,559 The consolidated income statement is to be read in conjunction with the notes to the consolidated financial statements set out on pages 10 to A-47

188 OrtanioHoldingsLimited Consolidatedstatementof profit andloss and othercomprehensive income fortheyear endeddecember31, USD ('000) USD('000) Net profit 3,408 11,559 Other comprehensiveincome Itemsthatare or may bereclassifiedto profit orloss Foreign currencytranslation differences (561) (222) Other comprehensiveincome, netoftax (561) (222) Total comprehensive income attributable toshareholders of thecompany 2,847 11,337 The consolidated statement of comprehensive income is to be read in conjunction with the notes to the consolidated financial statements set out on pages 10 to A-48

189 OrtanioHoldingsLimited Consolidatedstatementofchangesinequity Share Share Translation Retained Total capital premium reserve earnings Balance at January1, ,046 1,055 (6,865) 10,286 Netprofit 11,559 11,559 Other comprehensive income Foreign currency translation differences (222) (222) Total comprehensive income (222) 11,559 11,337 Transactions withownersof the Company Dividends* (1,200) (1,200) Balance atdecember 31, , ,494 20,423 *Dividend per share is USD Share Share Translation Retained Total capital premium reserve earnings Balance at January1, , ,494 20,423 Netprofit 3,408 3,408 Other comprehensive income Foreign currency translation differences (561) (561) Total comprehensive income (561) 3,408 2,847 Balance atdecember 31, , ,902 23,270 The consolidated statement of changes in equity is to be read in conjunction with the notes to the consolidated financialstatements setouton pages 10 to A-49

190 OrtanioHoldingsLimited Consolidatedstatementofcashflows fortheyear endeddecember 31, Note USD ('000) USD('000) CASH FLOWSFROMOPERATINGACTIVITIES Profit beforetax 5,347 14,211 Adjusted for: Depreciation ofrailcarandequipment 13 3,239 2,805 Amortisation ofintangibleassets 11 5 Net foreign exchangeloss / (gain) 19, 20 2,814 (2,078) Interestincome 19 (119) (649) Interestexpense 20 3,137 3,893 Gain on sale of railcars andequipment (7) Othernon-cash items* 1,958 2,326 Operating profit beforeworkingcapitalchanges 16,369 20,513 Changesin working capital: Tradereceivables (38) (787) Receivablesfromaffiliated companies 635 Othercurrent assets (329) 278 Inventories (130) (106) Payablesto affiliated companies (16) Tradepayables Otherpayables and accrued expenses 17 1,094 Cashgeneratedfromoperatingactivities 15,957 21,631 Interest paid (3,101) (3,334) Interestreceived Financingcostspaid (1,045) Incometaxespaid (866) (140) Net cashinflow from operatingactivities 11,096 18,346 *Major non-cash movements consist of an allowance for trade receivable recognized at year-end 2013, an allowance on outstanding VAT receivables, capitalized financial costs not yet paid and the partly reversal of the provisionfor alegal case, recognized at year-end The consolidated statement of cash flows is to be read in conjunction with the notes to the consolidated financial statements set out on pages 10 to A-50

191 OrtanioHoldingsLimited Consolidatedstatementofcashflows fortheyear endeddecember 31, Note USD ('000) USD('000) CASH FLOWSFROM INVESTINGACTIVITIES Acquisition of railcarsandequipment 13 (10,105) (123) Proceedsfromsaleofrailcars and equipment Net cashoutflow from investing activities (10,039) (123) CASH FLOWSFROMFINANCINGACTIVITES New fundsborrowed third parties 14 a) 40,940 Dividends paid (1,200) Financial Investments 6,104 (6,400) Loantodirector 23 (47) 54 Repayment offunds borrowed thirdparties 14 a) (43,239) (2,078) Repayment offunds borrowed related party (4,303) Repayment ofpromissorynotesissued 14 b) (1,420) Repayment offunds borrowed shareholders 15 (3,499) Net cashoutflow from financing activities (1,161) (13,927) Net increase/(decrease) in cashand cash equivalents (104) 4,296 Cashand cash equivalents at beginningofperiod 9,093 4,246 Effect ofexchange rate fluctuations oncash held (626) 551 Cashand cash equivalents at end ofperiod 8 8,363 9,093 The consolidated statement of cash flows is to be read in conjunction with the notes to the consolidated financial statements set out on pager 10 to A-51

192 OrtanioHoldingsLimited Notesto theconsolidatedfinancial statements 1. REPORTINGENTITY Ortanio Holdings Limited (the "Company") is domiciled in British Virgin Islands. The consolidated financial statements of the Company for the year ended December 31, 2013 comprise the Companyand its subsidiaries (together referredto asthe "Group"). Ortanio Holdings Limited was formed in 2007 as the holding company with the purpose to invest andfinancerailcarleasingoperationsin Russia. This Group is ownedbythe followingparties: At the reporting date, % of the Group and is acompany wholly owned by AAE Ahaus Alstätter Eisenbahn Holding AG. AAE Capital is part of agroup of companies ("AAE Group") which is aleading freight car leasingcompany ineurope.thegoal of AAE Groupisto geographicallyexpand into Russia bringingtheir expertiseinrailcarleasingand financingtothe Group. The other %of the Group is owned by two companies Winnoc Group Limited and which are two companies ultimately owned by individuals who have experience in the Russian railroad industry primarily in logistics and manufacturing. The goal of these individuals is to broaden their involvement in the rail industry by providingleasingservicesto themarket. 2. BASISOF ACCOUNTING The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). The consolidated financial statements were authorised for issueby the Board ofdirectors onjune13, FUNCTIONALANDPRESENTATION CURRENCY Theconsolidatedfinancial statementsare presented inusdollar, roundedtothe nearest thousand.theaccounts of foreignsubsidiariesare preparedintherelevant functionalcurrency and translated into USDollar,thepresentation currency.for the Russiansubsidiariesthe functional currencyis the RussianRoubleasthis represents thecurrencyofthe economicenvironment in whichthey operate. 10 A-52

193 OrtanioHoldingsLimited Notesto theconsolidatedfinancial statements 4. USEOFJUDGEMENTS AND ESTIMATES The preparation of the consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income, expenses and related disclosures. The estimates and underlying assumptions are based on historical experience and various other factors that are believed to be reasonableunder thecircumstances,theresults of which formthebasis ofmaking the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differfromthese estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Changes in accounting estimates may be necessary if there are changes in the circumstances on which the estimate was based, or as aresult of new information or more experience. Such changes are recognisedin theperiod inwhichthe estimateis revised. The key assumptions about the future and key sources of estimation uncertainty that have a significant risk of causing amaterial adjustment to the carrying value of assets and liabilities within the next twelve months are described in the accounting policies and notes of railcars and equipment,tradereceivables, deferredtaxand provisions. 5. BASISOF MEASUREMENT The consolidated financial statements have been prepared on the historical cost basis except that derivative financial instruments arestated at their fair value. 6. CHANGES INACCOUNTINGPOLICIES Except for the changes below, the Group has consistentlyapplied theaccounting policies set out in note7toall periods presentedin theseconsolidatedfinancial statements. Effect of adopting new standards, amendments and interpretations New and amended IFRSs were adopted effective January 1, The new and amended standardshad no materialef Adoption of new standards in 2014 or later TheInternational AccountingStandards Board (IASB)and the IFRSInterpretations Committee (IFRIC)haveissued anumber of new and revised standardsand interpretationsthat areapplicableforfinancial periods eitherbeginningonjanuary1,2014 orlater.the impact of all these standards andinterpretations has not yet been systematically analyzed, but none ofthesestandardsandinterpretations areexpectedto haveasignificant impact on the consolidated financial statements. 11 A-53

194 OrtanioHoldingsLimited Notesto theconsolidatedfinancial statements 7. SIGNIFICANTACCOUNTINGPOLICIES Except for the changes explained in note 6, the Group has consistently applied the accounting policies to all periods presentedinthese consolidated financial statements. Basis ofconsolidation Subsidiaries Companies in which Ortanio Holdings Limited has the ability to control are fully consolidated in accordance with IFRS10. TheGroup controls an entitywhen it is exposed to,orhas rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. All companies in the Group have adecember 31 year-end. Alist of subsidiarycompanies is shownin note 22. Transactions eliminatedonconsolidation Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions,areeliminated in preparingtheconsolidated financial statements. Foreigncurrency Foreign currencytransactions Transactions in foreign currencies aretranslated to the respective functional currencies of Group entities at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated to the functional currencyat the foreign exchange rate rulingat that date. Non-monetary assets and liabilities in foreign currencies that are stated at fair value are translated at the foreign exchange rate at the date values were determined. Foreign exchange differences arising on transactions are recognised in the income statement as financial income or financial expenses (refer to notes 19 and 20). Non-monetary items that are measured based on historical cost in a foreign currencyarenottranslated. Financial statements offoreign operations The assets and liabilities of foreign operations are translated to US Dollar using the exchange rate ruling at the balance sheet date. The income and expenses of foreign operations are translated into US Dollar at the exchange rates at the dates of the transactions. Foreign exchange differences arising on translation of foreign operations are recognized directly in other comprehensiveincome and accumulated in thetranslation reserve. 12 A-54

195 OrtanioHoldingsLimited Notesto theconsolidatedfinancial statements 7. SIGNIFICANTACCOUNTINGPOLICIES (CONTINUED) Derivativefinancialinstruments The Group may use derivative financial instruments to hedge its interest rate risk exposures arising fromfinancing activities. In accordance with its treasurypolicy, the Group does not hold or issue derivative financial instruments for trading purposes. However, derivatives that do not qualify forhedge accountingareaccounted foras tradinginstruments. Derivatives are recognised initially at fair value; any directly attributable transaction costs are recognised in profit or loss as they are incurred. Subsequent to initial recognition, derivatives aremeasured at fairvalue,and changes therein are generallyrecognisedin profitorloss. Cash and cash equivalents /Financial investments The Group considers all highly liquid financial instruments with an original maturity of three monthsorless fromthe date of acquisition to becashand cash equivalents. The Group may hold debt securities or deposits with banks to maturity, then such financial assetsareclassified as held-to-maturity.those financial assets are recognized initiallyat fair value plus any transaction costs. Subsequently they are measured at amortised costs using the effective interest ratemethod. Trade receivables Trade receivables which mainly consist of rental receivables from customers are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortised cost using the effective interest method, less any impairment losses. A provision for impairment is recognized on an individual basis where there is objective evidence that impairment losses have been incurred. Inventories Inventories are measured at the lower of cost and net realisable value less aspecific allowance for obsolescence. Cost is determined using the weighted average method. Re-workable spare parts are statedat cost less an allowance,whichis based on theirusage. 13 A-55

196 OrtanioHoldingsLimited Notesto theconsolidatedfinancial statements 7. SIGNIFICANTACCOUNTINGPOLICIES (CONTINUED) Railcars and equipment Railcars and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.if significant parts of railcarsand equipment have different useful lives, then they are accounted for as separate items (major components) of railcars and equipment. Theprimaryassets ofthegroupcomprise offreight railcars. Depreciation is calculated to write off the cost of items of railcars and equipment less their estimated residual values using the straight-line method over their estimated useful lives, and is generally recognised in profit orloss. Theestimated useful lives of railcarsand equipment are as follows: Equipment 2 5years Railcars years Wheelsets 7years Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjustedif appropriate. Leased assets, of which the Group assumes substantially all the risks and rewards of ownership, are classified as finance leases. Railcars acquired by way of finance leases are stated at an amount equal to the lower of their fair value and the present value of the minimum lease paymentsattheinceptionofthe lease,lessaccumulated depreciation. Acquiredlease contracts Acquired lease contracts are stated at cost less accumulated amortisation. Amortisation is charged to the income statement on astraight-line basis over the estimated useful life whichis 2 to 4years. Impairment Non-current assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists,the Group estimates theasset's recoverable amount as the higher of fair value less cost of disposal and value-in-use and recognizes an impairment loss in the income statement for the amount by which the asset's carrying value exceeds its recoverable amount.value-in-use is estimated as the present value of future cash flows expected to result from the use of the asset and its eventual disposal, to which an appropriate discountrateis applied. Impairment lossesaredeductedfromtheassetsto whichthey relate. 14 A-56

197 OrtanioHoldingsLimited Notesto theconsolidatedfinancial statements 7. SIGNIFICANTACCOUNTINGPOLICIES(CONTINUED) Impairment (continued) For the purposes of assessing impairment, assets are grouped at the lowest levels (i.e. by type of railcar) for which there are separately identifiable cash inflows. Considerable management judgement is necessary to estimate discounted future cash flows. Actual outcomes could vary significantly fromsuch estimates of future discountedcash flows. Otherpayables and accruals Otherpayablesand accrualsarestated at amortisedcost usingtheeffectiveinterest method. Interest-bearing loans andborrowings Interest-bearing loans and borrowings are recognised initially at fair value less any directly attributable transaction costs.subsequent to initial recognition,interest-bearing loans and borrowings aremeasured at amortised cost usingthe effectiveinterest method. Provisions Aprovision is recognised in the balance sheet when the Group has apresent legal or constructive obligation as aresult of apast event, and it is probablethat an outflow of economic benefits willberequired tosettlethe obligation. res that will be required to settle the obligations as at the balance sheet date. Provisions are reviewed at eachbalance sheet dateand adjusted to reflect the currentbest estimate. Revenues The principle source of revenue for the Group is rental income obtained through operating leases involving the rental of freight railcars to customers throughout Russia. Revenue is recognisedintheperiodinwhichit is earned. 15 A-57

198 OrtanioHoldingsLimited Notesto theconsolidatedfinancial statements 7. SIGNIFICANTACCOUNTING POLICIES (CONTINUED) Leasepayments Payments made under operating leases are recognised in profit or loss on astraight-line basis over the term of the lease. Lease incentives received are recognised as an integral part of the totalleaseexpense,over thetermof thelease. Repairandmaintenance costs Repair and maintenancecostsarecharged totheincome statement as incurred. Financial expense Financial expense comprise interest expense on borrowings, impairment losses on financial asset, foreign exchange losses and changes in the fair value of hedging instruments that are recognised in the income statement. All borrowing costs are recognised in the income statement usingtheeffectiveinterestmethod. Incometax Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to abusiness combination, or items recognised directly in equity or in OCI. Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to tax payable or receivable in respect of previous years. It is measured using tax rates enacted or substantively enacted at the reporting date. Current tax also includesanytax arising fromdividends. 16 A-58

199 OrtanioHoldingsLimited Notesto theconsolidatedfinancial statements 7. SIGNIFICANTACCOUNTINGPOLICIES (CONTINUED) Incometax (continued) Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: acquired lease contracts not deductible for tax purposes, the initial recognition of assets or liabilities in atransaction that is not abusiness combination and that affect neither accounting nor taxable profit or loss, and temporary differences relating to investments in subsidiaries, associates and joint arrangements to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using the applicable tax rate enacted at the balancesheet date. Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Deferred tax assets are reviewed at each reporting date and are reducedto theextent thatit is no longer probablethatthe relatedtax benefit willberealised. Determinationof fair values Fair value is defined as the price that would be received to sell an asset or paid to transfer aliability in an orderly transaction between market participants at the measurement date. When measuring the fair value of an asset or aliability, the Group uses market observable data as far as possible. Fairvalues arecategorised into differentlevels inafairvaluehierarchybased onthe inputs usedin thevaluation techniques as follows. - Level 1: quotedprices (unadjusted)inactivemarkets for identical assetsorliabilities. - Level 2: inputs other than quoted prices included in Level 1that are observable for the asset or liability, either directly (i.e.as prices) or indirectly (i.e. derived fromprices). - Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). TheGroupdoesnothaveany derivative financialinstrumentsmeasured at fair value. 17 A-59

200 OrtanioHoldingsLimited Notesto theconsolidatedfinancial statements USD ('000) USD('000) 8. CASHAND CASHEQUIVALENTS /FINANCIALINVESTMENTS Cashat bank 8,363 9,093 Financial investments The new loan facility with ING Bank N.V. requires no cash reserve. Therefore, the Company invests their free cash on ashort term basis until the cash is required for repayment of loans. At 31 December 2013, the Company had two deposits with UniCredit Bank in total amount of TUSD 6,622, classified ascash, with afixed interest rate of 3,6% and 4%.The deposits wererepaid onjanuary 09,2014 and January14, The financial investments of TUSD 6,400 are ashort-term deposit with Alfa Bank with afixed interestrateof2%.thedeposit was repaid on March25, OTHERRECEIVABLES Taxprepayment,net of allowanceoftusd Valueaddedtaxreceivables Advances to suppliers Loan todirectors 46 Othercurrent assets In March 2014, Leasing Company Vagonpark received the resolution of the tax inspectorate office as aresult of the latest tax audit, which took place in This resolution determined the inability of the Company to apply VAT tax deduction in the amount of TUSD 500. This VAT receivable refers to the 70 platforms, described in the legal case in note 25, which were returned to Rental CompanyVagonpark. The Company is goingto filean appeal against thedecision to a higher echelon. Since the outcome is uncertain, an allowance of TUSD 500 was recognized at 31 December A-60

201 OrtanioHoldingsLimited Notesto theconsolidatedfinancial statements USD ('000) USD('000) 10. TRADE RECEIVABLES Tradereceivablesdue fromthird parties 1,910 2,035 Allowance fordoubtful debts (269) 1,641 2,035 Trade receivables are mainly denominated in Russian Roubles although some of the lease contractscontain lease ratesindexingtheusdollar. TheGroup's customer baseconsists mainlyof transportation andlogistics companies. The Group has established an allowance for impairment that represents its estimate of incurred losses in respect of trade receivables. This allowance is a specific loss component that relates to individual exposures. The allowance for doubtful debts of TUSD 269 relates to acustomer, overduesincedecember2012. receivables are Thecredit riskisconsidered low and henceno additionalimpairment allowanceis necessaryas of December31, A-61

202 OrtanioHoldingsLimited Notesto theconsolidatedfinancial statements 11. INTANGIBLEASSETS Themovements of intangibleassets and accumulated amortisationare asfollows: in USD'000 Software Acquired Lease Total contracts Cost Balance January1, Additions Balance at December 31, Amortisation Opening balance (16) (655) (671) Amortisation Balance at December 31, 2013 (16) (655) (671) Net book value at December 31, Cost Balance January1, Additions Balance at December31, Amortisation Opening balance (11) (655) (666) Amortisation (5) (5) Balance at December 31, 2012 (16) (655) (671) Net book value at December 31, A-62

203 OrtanioHoldingsLimited Notesto the consolidatedfinancial statements 12. TAXES a) Deferred tax assets/(liabilities) Deferredtax assets and (liabilities) areattributabletothefollowing: USD ('000) USD ('000) Assets Liabilities Net Net Otherpayablesand accruedexpenses Railcars andequipment 188 (4,017) (3,829) (2,376) Othercurrent assets Taxloss carry forwards Capitalized financial costs (28) (28) Total 467 (4,045) (3,578) (2,275) For presentation purposes deferred tax assets and deferred tax liabilities have been offset within thesametaxableentity. Tax loss carryforwards The Group has tax loss carry forwards which can be offset against taxable profits in the future. Tax loss carry forwards amounting to TUSD 75 (2012: TUSD Nil) have been recognized, resultinginadeferredtaxasset oftusd 15 (2012:TUSDNil). Thetax loss carry forwards have been incurred in therussian subsidiarieswhere such tax losses carry forwardscanbeutilised over10 years. Management considers that future taxable profits will be available against which deferred tax assetscan be used. 21 A-63

204 OrtanioHoldingsLimited Notesto theconsolidatedfinancial statements USD ('000) USD('000) 12. TAXES (CONTINUED) b) Income tax expense Currenttax expense (427) (432) Deferredtaxes (1,512) (2,220) Income tax expense (1,939) (2,652) c) Reconciliation of effectivetax rate Profit beforetax 5,347 14,211 Taxattheapplicable taxrateof15.5 %(2012: 15.5 %) (829) (2,203) Tax-exempt income 82 Non-deductible operatingexpense (66) (359) Non-deductible foreign exchange gain/losses (17) 30 Taxexemption in BritishVirgin Islands (72) (55) Effect of tax rates in otherjurisdictions (11) (9) Withholding tax on dividendspaid (138) Changein expectedtax rate (20%) (819) Othereffects (125) Income taxes (1,939) (2,652) The companies apply different income tax rates; for companies incorporated in the republic of Mordovia the rate is 15,5 %(2012: 15,5 %); for companies incorporated in Moscow, the rate is 20 % (2012: 20 %). Cyprus companies have a 12,5 %(2012: 10 %) tax flat rate on its profit. BVIcompanies aretax exempt. 22 A-64

205 OrtanioHoldingsLimited Notesto the consolidatedfinancial statements 12. TAXES(CONTINUED) Management hasapplied the tax rateof 15,5 % (2012: 15,5%), reflectingthetaxrateofooo LeasingCompanyVagonpark in Mordovia, Russia, themain operatingcompanyofthe group. At the same timesomeamendments weremade inthe legislation ofmordovia relatingtoincometax,which determinedanewtax rateof20% forooo LeasingCompanyVagonparkas of 1 January2014. Management hasused an expectedtax rate of20 %tocalculatetemporary differencesand closingbalances of deferred taxes toreflect theenacted taxrateof20 % as of 1January RAILCARSANDEQUIPMENT The railcars and equipmentof Ortanio Holdings Limited mainlyconsistsofrailcars. Themovements of railcarsand equipment andaccumulated depreciationare as follows: Railcars Equipment Total Cost Balance at January1, , ,439 Additions 10, ,115 Disposal (54) (40) (94) Foreign currencytranslation differences (4,159) (18) (4,177) Balance at December 31, , ,283 Depreciation Balance at January1,2013 (14,079) (114) (14,193) Depreciation (3,220) (19) (3,239) Disposal Foreign currencytranslation differences 1, ,128 Balance at December 31, 2013 (16,173) (98) (16,271) Net bookvalue at December 31, , ,012 e- fer to note 14 a). In 2012, r- rowings. 23 A-65

206 OrtanioHoldingsLimited Notesto theconsolidatedfinancial statements 13. RAILCARSANDEQUIPMENT(CONTINUED) Railcars Equipment Total Cost Balance at January1, , ,436 Additions Foreign currencytranslation differences 2, ,880 Balance at December 31, , ,439 Depreciation Balance at January1,2012 (10,563) (94) (10,657) Depreciation (2,785) (20) (2,805) Foreign currencytranslation differences (731) (731) Balance at December 31, 2012 (14,079) (114) (14,193) Net bookvalue at December 31, , , INTEREST-BEARINGLOANSAND BORROWINGS USD ('000) USD('000) Currentliabilities Secured bankloans 2,117 3,533 Otherinterest-bearingloans and borrowings 68 1,561 Deferredfinancingcosts (241) 1,944 5,094 Non-currentliabilities Secured bankloans 38,893 38,383 Deferredfinancingcosts (964) 37,929 38, A-66

207 OrtanioHoldingsLimited Notes to the consolidated financial statements 14. INTEREST-BEARINGLOANSAND BORROWINGS (CONTINUED) a)secured bank loans Ortanio facilities In September 2011, Russian subsidiaries of the Group have received aloan from Alfa-Bank, Moscowinthe amount oftusd46,479.theloanwas fully repaidin December To refinance the loan the Company has applied to ING Bank N.V., Amsterdam for anew financing. The credit facility for TUSD 56,000 was arranged by ING Bank N.V. as facility agent for OrtanioHoldings Limited. ING BankN.V. made availabletotheborrower: 1) atermloan facilityinanaggregateamount equalto thetotalfacilityacommitments of TUSD40,000 2) atermloan facilityinanaggregateamount equalto thetotalfacilitybcommitments of TUSD16,000 On December 19, 2013 TUSD 39,740 was drawn from the term loan facility Ato repay the outstanding facility with Alfa-Bank in the amount of TUSD 39,256 and to repay the outstanding shareholdersloan with AAE Capital AG in the amount oftusd 484. From the term loan facility BTUSD 1,200 was drawn on the same date to pay ING Bank N.V. arrangement fees, and other legal fees associated with the new financing. The remaining TUSD 14,800isplanned tobeused foracquisition of newrailcarsin Russia. Both term loan facilities have aterm of 5years and bear an interest rate of 4.5 %+3-month USD LIBOR. Interests are paid on aquarterly basis. The total balance of secured bank loans at December 31,2013 is TUSD41,010 (2012:TUSD 41,916). b) Otherinterest-bearing loansand borrowings In January2010promissory notes wereissued with ZAO UK VKM with afixedinterestrate of %whichwererepaidin January A-67

208 OrtanioHoldingsLimited Notesto theconsolidatedfinancial statements 14. INTEREST-BEARINGLOANSAND BORROWINGS (CONTINUED) c) Covenants Thedebt agreementsare subject to financial covenants, whicharemeasured quarterly.the Group wasin compliancewiththose financial covenantsat December 31,2013as well asduringtheinterveningperiod. 15. INTEREST-BEARINGLOANS FROM SHAREHOLDERS USD ('000) USD ('000) AAE Ahaus Alstätter Eisenbahn Capital AG 3,499 The shareholder loan is denominated in USD (until April 30, 2012 it was indexed to the Russian Rubles) with a fixed interest rate of 12 %. Based on the loan agreement the amount of TUSD 3,049 was repaid in June 2013 and the remaining amount of TUSD 450 was repaid in December SHARECAPITAL Share capital comprises 50,000 authorised, issued and fully-paid shares each with anominal valueofusd SHAREPREMIUM The share premium of TUSD 16,046 relates to acontribution in-kind of TUSD 11,611 in the formof railcarsnet of related financings andan additional paid-in capital oftusd 4, A-68

209 OrtanioHoldingsLimited Notesto theconsolidatedfinancial statements USD ('000) USD('000) 18. OTHEROPERATINGEXPENSES Provision forlegal case(referto Note25) 251 (2,317) Allowance onvatreceivable (refer to Note9) (500) General and administrative expenses (1,632) (1,027) Legal and advisorycosts (773) (389) (2,654) (3,733) 19. FINANCIAL INCOME Interestincome Foreign exchangegain 2, , FINANCIAL EXPENSES Interestexpense on financial liabilities (2,902) (3,452) Interestexpense onshareholders loans (208) (441) Interestexpense onloans fromaffiliated companies (4) Bankcharges (23) (30) Commitment fees (18) Arrangement andlegal fees (5) Foreign exchangeloss (2,814) (5,974) (3,923) 27 A-69

210 OrtanioHoldingsLimited Notesto theconsolidatedfinancial statements 21. FINANCIALRISKMANAGEMENT/FINANCIALINSTRUMENTS Risks related tofinancial instruments n- agement is responsible forevaluating, monitoring and managing financial exposures. The financial exposures arereviewedby thesupervisoryboardon aregular basis. The Group has exposure to credit risks, liquidity risks and market risks (currency and interest raterisks). Credit risk Management monitors the exposure to credit risk on an ongoing basis. Credit evaluations are performed on all customers requiring credit over acertain amount. The Group does not require collateralin respect offinancial assets. The maximum exposure to credit risk is represented by the carrying amount of each financial asset,in thebalance sheet asdetailed below. Categorizationof financialassets USD ('000) USD ('000) Cashand cash equivalents 8,363 9,093 Financial Investment 6,400 Tradereceivables 1,641 2,035 Otherreceivables loan todirectors 46 10,050 17, A-70

211 OrtanioHoldingsLimited Notesto theconsolidatedfinancial statements 21. FINANCIALRISKMANAGEMENT/ FINANCIAL INSTRUMENTS (CONTINUED) Liquidity risk Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. In the light of the dynamic business environment the Group operates, the main goal is to manage liquidity in order to ensure that it will always have sufficient liquidity to meet its liabilities,under bothnormal and stressedcircumstances. The Group has mainly current and non-current liabilities from interest-bearing loans and borrowings. At December 31, 2013 the unused credit line from the term loan facility Bof the ING Bank N.V. amounts totusd 14,800. (2012:TUSDNIL). Thefollowingarethecontractual maturities offinancial liabilities,includinginterest payments: December 31, 2013 Non-derivative financial liabilities Total Carrying Contractual 6mths Morethan Amount Cash Flows or less 6-12 mths 2-3 years 3years Secured bank loans 41,010 48, ,010 11,555 33,206 Loansfrom thirdparties Trade payables Other payables and accruedexpenses 1,543 1,543 1,543 42,772 50,504 2,733 3,010 11,555 33, A-71

212 OrtanioHoldingsLimited Notesto theconsolidatedfinancial statements 21. FINANCIALRISKMANAGEMENT/ FINANCIAL INSTRUMENTS (CONTINUED) Liquidity risk(continued) Thefollowingarethecontractual maturities offinancial liabilities,includinginterest payments: December 31, 2012 Non-derivative financial liabilities Total Carrying Contractual 6mths Morethan Amount Cash Flows or less 6-12 mths 2-3 years 3years Secured bank loans 41,916 56,403 3,291 3,254 12,538 37,320 Loansfrom third parties 1,561 1,565 1, Loansfrom shareholders 3,499 3,717 3, Trade payables Other payables and accruedexpenses 1,240 1,240 1,240 48,306 63,015 9,419 3,327 12,949 37,320 Currencyrisk The day-to-day activities of Russian subsidiaries are primarily in Russian Roubles (RUB) including rental income andpayments of operating expenses. All other excess funds which arenot used asworkingcapital areheld bythe parent companyin USD. However, there is acurrency risk on the USD denominated intercompany interest-bearing loans and borrowings against the RUB. A10 %change of the RUB against the USD at the reporting date would have increased/decreased net profit bytusd 3,577 (2012:TUSD3,249). Interest rate risk primarily utilizes variable rate debt to finance its operations. These debt obligations expose the Group to variabilityin interest payments duetochangesininterestrates. The Group analyses regularly if derivative financial instruments are needed to reduce exposure to fluctuationsin interest rates. On theotherhand, these instruments would be subject to the risk of market value changing subsequent to acquisition, but such changes are generally offset by opposite effectson theitems beinghedged. 30 A-72

213 OrtanioHoldingsLimited Notesto theconsolidatedfinancial statements 21. FINANCIALRISKMANAGEMENT/ FINANCIAL INSTRUMENTS (CONTINUED) Interest raterisk (continued) Sensitivity analysis At thereportingdate theinterest rateprofileof thegroup's interest-bearing financial instruments was: Fixedrateinstruments USD ('000) USD('000) Financial liabilities (5,060) Financial assets 6,400 (1,340) Variable rateinstruments Financial assets 8,363 9,093 Financial liabilities (41,010) (41,916) (32,647) (32,823) Cashflow sensitivityanalysisforvariable rateinstruments An increase of 100 basis points in interest rates at the reporting date would have an annualized negative impact of TUSD 276 (2012: TUSD 277) on net profit, mainly as aresult of higher interest expense on USD denominated floating rate borrowings compensated by higher interest income on floating ratecashand cash equivalents. Adecrease of 100 basis points in interest rates at the reporting date would have an annualized positiveimpactoftusd 15 (2012:TUSD 33)on netprofit. 31 A-73

214 OrtanioHoldingsLimited Notesto theconsolidated financial statements 21. FINANCIALRISKMANAGEMENT/ FINANCIAL INSTRUMENTS (CONTINUED) Fairvaluesversus carrying amounts The carrying amount of thefinancial liabilities carried at amortised cost approximates fair value. For financial payables with aremaining life of less than one year, the carrying amount is deemed to reflect thefairvalue. The carrying amount of financial assets not carried at fair value approximatesfair values. For financial receivables with aremaining life of less than one year, the carrying amounts are deemed to reflect fairvalues. CapitalManagement TheSupervisoryBoard's policyis to maintain astrongcapital base financial stability and the ability to continue as agoing concern in order to sustain future development of the business. The Board of Directors monitors the return on capital, which the Group definesas net operatingincome divided bytotal shareholders'equity. tduringtheyear. Other than this requirement, neither the Group nor any of its subsidiaries are subject to externallyimposed capital requirements. 22. SUBSIDIARIES The subsidiaries, which were all active in the freight railcar sector during the reporting period, are asfollows: Company Incorporated in Percentageowned GalbanumTrade& Invest Ltd. Cyprus 100 % SturgessHoldings Limited Cyprus 100 % OOO LeasingCompany Vagonpark Mordovia, Russia 100 % OOO Rental Company Vagonpark Moscow, Russia 100 % OOO Regionvagonpark has been merged with OOO Leasing Company Vagonpark in March A-74

215 OrtanioHoldingsLimited Notesto theconsolidatedfinancial statements 23. RELATED PARTIES The Group has related party transactions with its subsidiaries, affiliated companies, directors Transactions with key management personnel Loan to director An unsecured loan to a director was issued in December 2013 and was given in cash. The annual interest rate payable on the loan is 7 %. At December 31, 2013 the outstanding balance was TUSD 46 (2012: TUSD Nil). Key management personnel compensation 648). ted to TUSD 926 (2012: TUSD Transactions with shareholders incorporated in Switzerland, Winnoc Group Limited and Whitby Universal Group Inc., companies incorporated in British Virgin Island. As of December 31, 2013 AAE Ahaus Alstätter Eisenbahn Capital AG owns % (2012: %) and Winnoc Group Limited and Whitby Universal Group Inc. own % (2012: %). In 2013, the Group incurred interest expense to its shareholders totalling to TUSD 208 (2012: TUSD 441). As of December 31, 2013 the Group had no outstanding balances of the interestbearing loans from shareholders (2012:TUSD 3,499),referto note 15. During the year 2013 the Group paid management and advisory fees of TUSD 148 (2012: TUSD 147) to the shareholders. 24. OPERATING LEASE The Group leases office premises under operating lease conditions. The leases typically run for an initial period of one to five years, with an option to renew the lease after that date. Lease payments areregularlyadjusted toreflect market rental rates. The Group leases out its railcars. These leases usually run for one to four years. Rental rates normallyarenotfixed and can bechangedevery 3months accordingto market data changes. 33 A-75

216 OrtanioHoldingsLimited Notesto theconsolidatedfinancial statements 24. OPERATINGLEASE (CONTINUED) The future minimum lease payments under non-cancellable leases are for less than one year TUSD 14,659 (2012: TUSD 24,946) and between one and five years TUSD 2,638 (2012: TUSD 16,553). 25. PROVISION EUR ('000) EUR ('000) BalanceatJanuary1, 2,317 Provisions made duringtheyear 2,317 Provisions reversedduring the year (251) Balanceat December 31, 2,066 2,317 In an ongoinglegal casewith aformerowner (plaintiff) of70 railcars which were acquired during the formation of the Company) at the Moscow court, the court of appeal decidedinits third instanceon May 22,2013 tothedisadvantageof the Company. In April 2013, 70 railcars were returned by Leasing Company Vagonpark to Rental Company Vagonpark, registrated in Moscow. In August 2013 the executory process of the legal case was transferred from the republic of Mordovia This resolution was appealed by Leasing Company Vagonpark in March 2014, but appeals instance left the judgement ofthecourttothedisadvantageofthe Company. It is highly probable that an outflow of economic benefits will be required to settle the obligation. The amount recognized as provision represents the carrying amount of the 70 railcars as of December 31, 2013 in the amount of TUSD 2,066 estimate to settle the obligationatyear-end. Thedifferenceintheestimateswasincludedin «Otherdirectcosts». The outflow is expected during A-76

217 OrtanioHoldingsLimited Notesto theconsolidatedfinancial statements 26. SUBSEQUENTEVENTS In March 2014 anew contract for the sale of 396 hoppers for an amount of TUSD 19,702 including VAT, which were previously leased by BTLK-Group, was negotiated with Logistic service, acompany affiliated with BTLK-Group. The railcars should be transferred to the new buyer at thelatest 30 June2014. There have been no other material events between December 31, 2013 and the date of the issuance of the audit report which would require adjustments to or disclosure in the consolidated financialstatements. 35 A-77

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