MEANING OF MIZUHO ESTABLISHED PRINCIPAL SHAREHOLDERS ADDRESS

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

3 CONTENTS Board of Directors 04 Management 05 Annual Report 2012/ Balance Sheet as at 31 March 2013 (before allocation of profits) 07 Income Statement for the year ended on 31 March Appropriation of retained earnings proposed by the Board of Directors 08 Cash Flow Statement for the year ended on 31 March Notes to the financial statements 1. Comments on business activity and staff numbers Accounting and valuation policies Information on the balance sheet 3.1 Analysis of collateral for loans, advances and off-balance sheet transactions Securities and precious metals trading portfolios and financial investments Participations Fixed assets Other Assets and Liabilities Assets pledged to secure own liabilities and assets subject to ownership reservation Liabilities against own pension plans Valuation adjustments and provisions/reserve for general banking risks Share capital Statement of changes in shareholders' equity Maturity structure of current assets and liabilities Due from and due to affiliated entities and loans and exposures to members of the bank's governing bodies Assets/Liabilities by domestic and foreign origin Assets by countries respectively country groups Balance sheet by currencies Information on off balance transactions 4.1 Breakdown of contingent liabilities Breakdown of irrevocable commitments Outstanding derivative instruments (Trading instruments) Breakdown of fiduciary transactions Customer assets Information on profit and loss accounts 5.2 Analysis of results from trading operations Analysis of personnel expenses Analysis of other operating expenses Other information on extraordinary items and material release of hidden reserves 21 Auditors' Report 22 Page - 3 -

4 Board of Directors MITSUO HIRAKATA Chairman of the Board of Directors (until 8 May 2012) HAJIME SAITO Chairman of the Board of Directors (as from 8 May 2012) BIGNIA VIELI TROEHLER Vice Chairwoman of the Board of Directors MASATO TAKANO Member of the Board of Directors (until 8 May 2012) OSAMU SHIMIZU Member of the Board of Directors (as from 8 May 2012) Auditors ERNST & YOUNG AG, ZURICH Page - 4 -

5 Management IWAO TAKAI BRUNO MARTY President Executive Vice President NIKLAUS TSCHIRKY DAVID TYE Senior Vice President Senior Vice President PETER ANNELER ROMAN GÜNTER SHU KITANO LUISA LANSANGAN SHIGEKI SHIBATA ENRIQUE VILLAREAL FEE KOOI YEE Vice President Vice President Vice President Vice President Vice President Vice President Vice President Page - 5 -

6 Annual Report 2012/2013 This report refers to the financial year 2012/2013, which encompasses the period from 1 April 2012 to 31 March Main activities of Mizuho Bank (Switzerland) Ltd Mizuho Bank (Switzerland) Ltd exclusively concentrates its activities on Wealth Management for private clients and on Institutional Asset Management. Whether our customers wish to make their own investment decisions or to delegate the management of their assets to our long experienced and trustworthy professionals, we steadfastly act in their best interests. By building close relationships with our customers, their families and advisors, we form partnerships which span generations helping our customers reach and maintain their financial goals. The Balance Sheet of Mizuho Bank (Switzerland) Ltd The balance sheet total has decreased from Swiss Francs million to Swiss Francs million. This was mainly due to the decrease of the balance sheet item Due to customers by Swiss Francs 17.0 million and Due to banks by Swiss Francs 11.7 million. The financial investments were decreased by Swiss Francs 7.9 million to Swiss Francs million. Our capital and our reserves are mainly invested in Swiss Franc denominated bonds. Income Statement of Mizuho Bank (Switzerland) Ltd In the financial year, the net income amounted to Swiss Francs 274,808. As in the previous year, our main source of income was interest income (Swiss Francs 4.4 million), largely from our financial investments and money market placements, followed by commission income (Swiss Francs 2.2 million) and income from trading operations (Swiss Francs 0.9 million). Income from trading operations was generated mainly in foreign exchange markets. The Board of Directors proposes to the General Meeting of Shareholders to carry forward the retained earnings of the financial year (consisting of net income of current year and retained earnings carried forward from previous year). The total operating expenses amounted to Swiss Francs 6.8 million which is equal to last year s figures. Looking back on the past financial period of Mizuho Bank (Switzerland) Ltd A landmark decision of the Swiss Federal Supreme Court on kick-back payments, or so called retrocessions, obtained by banks in their capacity as asset managers was widely discussed in Switzerland during The Court ruled that based on existing Swiss law such trailer fees received by the bank in context with discretionary portfolio management mandates should be forwarded to the clients, if such claims are not validly waived by the clients. We have sent a detailed notification by the end of 2012 to inform all clients with a discretionary mandate who held third party funds in their portfolio accordingly. Although the capital adequacy requirements are increasing under the Basel III accord Mizuho Bank (Switzerland) Ltd is still well prepared for future developments with a high own capital ratio. Capital Adequacy Requirements (Mizuho Financial Group) Information about accountable and required own resources can be found under the title Status of Capital Adequacy on the internet site of the Mizuho Firnancial Group Tokyo ( on a group consolidation level behind Investor Relations / Financial Information / Annual Reviews. Subsequent events No extraordinary event occurred after the balance sheet date which could have a significant impact on the equity, financial statement or results of the bank in regard to the year under review. Outlook of Mizuho Bank (Switzerland) Ltd By intensifying the cooperation with the Mizuho network, one of the world's largest financial institutions, and by continuing to offer our clients quality products and services at competitive prices, we plan to increase the asset base and the income sources of the bank. By so doing, we are convinced that we will be able to strengthen the profitability of our bank. In the name of the Board of Directors Page - 6 -

7 Balance Sheet as at 31 March 2013 (before allocation of profits) Assets Cash 39,522 21,690 17,832 Due from banks 166, ,307-30,506 Due from customers 42,834 50,978-8,144 Financial investments 132, ,119-7,927 Fixed assets Accrued income and prepaid expenses 3,291 2, Other assets 3,594 2, Total Assets 388, ,784-27,340 Total due from group companies and significant shareholders Current Year Previous Year Change 135, ,599-36,409 Liabilities and Shareholders' Equity Due to banks 2,963 14,703-11,740 Due to customers, other 243, ,970-16,978 Accrued expenses and deferred income Other liabilities 4,135 3, Valuation adjustments and provisions Paid-in share capital 53,132 53,132 Legal reserves from capital contributions 2,500 2,500 General legal reserves from retained income 26,566 26,566 Other reserves from retained income 51,423 51,423 Retained earnings brought forward 2,241 2, Net income / loss Total Liabilities and Shareholders' Equity 388, ,784-27,340 Total due to group companies and significant shareholders Off-balance sheet transactions Contingent liabilities Irrevocable commitments Derivative financial instruments - Positive replacement values 3,050 2, Negative replacement values 2,953 2, Contract value 375, , ,939 Fiduciary transactions 94, , ,958 Page - 7 -

8 Income Statement for the year ended on 31 March 2013 Income and expenses from ordinary banking activities Current Year Previous Year Change Income from interest activities - Interest and discount income 1, Interest and dividend income on trading portfolios - Interest and dividend income on financial investments 3,124 3, Interest expenses Net interest income (sub-total) 4,423 4, Income from commission and service fee activities - Commission income on lending activities Commission income on securities and investment transactions 2,266 2, Commission income on other services Commission expenses Income from commission and service fee activities (sub-total) 2,228 2, Income from trading operations Operating expenses - Personnel expenses -4,764-4, Other operating expenses -2,067-2,074 7 Total operating expenses (sub-total) -6,831-6, Gross Income Depreciation and write-offs on non-current assets Valuation adjustments, provisions and losses Extraordinary income Extraordinary expenses Taxes Net income / loss Appropriation of retained earnings proposed by the Board of Directors Allocation of retained earnings Net income / loss Retained earnings 2,241 2, Total retained earnings 2,516 2, Current Year Previous Year Change Allocation of retained earnings Allocation to General legal reserves from retained Income Allocation to Other reserves from retained Income Dividend payments Retained earnings brought forward 2,516 2, Page - 8 -

9 Cash Flow Statement for the year ended on 31 March 2013 Current Year Previous Year Current Year Previous Year in 1'000 CHF Cash flow from operating income (internal sources) Net income / loss Depreciation and write-offs on non-current assets Valuation adjustments and provisions Accrued income and prepaid expenses Accrued expenses and deferred income Operating non cash related result from Financial investments Cash flow from own resources activities 10,000 Legal reserves from captial contributions 2,500 Other reserves from capital contributions 2,500 Dividend payment 10,000 Cash flow from investment activities Other fixed assets Cash flow from banking operations Medium and long term operations (more than 1 year) 17, Due to banks - Other liabilities 885 1,475 - Due from banks - Due from customers - Financial investments 17,740 - Other assets 987 1,482 Short-term operations 34,932 26,126 - Money market instruments - Due to banks 12,297 11,740 - Due to customers 119,800 16,978 - Due from banks 30, ,896 - Due from customers 8,144 10,048 - Financial investments 25,000 4,973 - Securities and precious metals trading portfolios Liquidity 17,832 16,191 - Cash 17,832 16,191 Source of funds Application of funds Page - 9 -

10 Notes to the financial statements 1. Comments on business activity and staff numbers General Mizuho Bank (Switzerland) Ltd is an internationally active financial institution. The company, domiciled in Zurich, is active as a bank as well as a securities broker. The total number of staff is, after part-time adjustment, 24 (previous year 25). The following business activities are conducted by the Mizuho Bank (Switzerland) Ltd. Balance sheet activities Interest related activities are an important source of revenue for Mizuho Bank (Switzerland) Ltd. Global Wealth Management continued to be the core business of the bank. In the private banking business, loans are usually granted against collateral. Commercial loans are granted against or without collateral. Interbank business is conducted mainly within the short-term range. Long-term financial requirements are covered when necessary in the capital market. The bank holds a strategic portfolio of securities with a short- to mid-term investment horizon in its financial investment. Trading Mizuho Bank (Switzerland) Ltd offers the execution and processing of all common banking transactions to their customers. Commissions and service activities The major part of the commission and service business is derived from portfolio management, fiduciary deposits, payments as well as securities and derivative trading for customers. Additionally, Mizuho Bank (Switzerland) Ltd renders services in asset management and the management and administration of investment funds. The services are utilized by private and institutional customers. Risk management The credit and market risk policy, which are examined by the bank's management annually for its suitability, form the basis for the risk management. Explicit limits are set for individual risks and their observance is constantly monitored. The responsibility for risk control is separated on a management level from the responsibility for the trading department. The management is regularly informed by means of a level-adequate management information system (MIS) about assets, financial situation, liquidity and earnings as well as the associated risks. Risk assessment The Board of Directors has discussed the material risks of the institution at the meeting on 7 September 2012 and determined adequate measures. We refer to following remarks for specifications of the related risks. Credit risks All commitments from which a loss can develop, if counter parties are not able to fulfill their obligations, contain credit risks. Credit risks are limited by means of diversification of risks, quality requirements and coverage margins. For credit approval process, where the creditworthiness and financial capability is judged, a risk-oriented authorization order exists. The appropriate periodic efficient monitoring of credit risks during their entire lifetime is examined with continuous control of the recoverability of the collateral. For the measurement and management of credit risk, the bank classifies its assets in a four level rating system. With this system the risks can be better estimated when granting a loan and the average possible losses in the future can be taken into consideration in determining the conditions for the individual counterparty. Interest rate risks The risks of interest rate changes from in-balance and off-balance positions are supervised and managed by the ALM-committee of the bank. The control is based on the market interest method and focuses on the net present value of the own capital. Based on these fundamentals and from compiled interest forecast, the ALM-committee decides regularly over hedging measures to be taken. As hedging instruments options, futures and interest rate swaps are available. There were no hedge positions during the reporting year. Other market risks The further market risks, which mainly contain position risks from foreign currencies, are restricted with limits. The positions are controlled on a daily basis. Liquidity risks The liquidity is supervised and ensured in the context of the banking related legal regulations. Own positions of the bank are examined regularly for tradability. Operational risks Operational risks are defined as "dangers of direct or indirect losses, caused by the inadequacy or the failure of internal procedures, people and systems or of external events". They are limited by internal regulations and guidelines for organsation and control. The internal audit examines the effectiveness and the adequacy of the internal control system on a regular basis and reports directly on its work to the board of directors. Compliance and legal risks The Compliance Officer ensures that the business activity is in compliance with the actual regulatory requirements and the exercise of due diligence of a financial intermediary. This position is responsible for the examination of requirements and developments on the part of the supervisory authority, the legislator or other organizations. In addition it ensures for the fact that the instructions and regulations are observed and kept up to date with regulatory developments. Page

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

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

13 3. Information on the balance sheet 3.1 Analysis of collateral for loans, advances and off-balance sheet transactions Loans Due from customers 42,834 42,834 Total Loans 42,834 42,834 Previous year 50,978 50,978 Type of collateral Mortgage Other Without collateral collateral collateral Total in 1'000 CHF Off-balance sheet transactions Contingent liabilities Irrevocable commitments Total off-balance sheet transactions Previous year Gross estimated Net Individual amount due gain from amount due valuation collateral adjustment Non-performing loans No non-performing loans in the reporting or previous year in 1'000 CHF 3.2 Securities and precious metals trading portfolios and financial investments Securities and precious metals trading portfolios No positions in the reporting or previous year Current Year in 1'000 CHF Previous Year in 1'000 CHF Financial investments Book value Fair Value Current Year Previous Year Current Year Previous Year in 1'000 CHF Interest-bearing securities and rights - Exchange-listed 132, , , ,070 - Unlisted Total financial investments 132, , , ,070 - of which qualified for repo transactions according to liquidity regulation 115, , , ,160 - of which held to maturity 132, , , , Participations At the balance sheet date Mizuho Bank (Switzerland) Ltd held no significant participations. Page

14 3.4 Fixed assets Historical Write-offs/ Book value Additions Write-offs/ Book value cost Accumulated end of depreciation end of depreciation previous year current year Other fixed assets (without Software) 2,884-2, Software 2,458-2, Total fixed assets 5,342-5, Fire insurance value of other fixed assets 3, Other Assets and Liabilities Replacement values of derivative financial instruments Contracts for own account - Trading portfolio - Others 3,050 2,953 2,054 2,044 Current year Previous year Other assets Other liabilities Other assets Other liabilities in 1'000 CHF Total replacement values 3,050 2,953 2,054 2,044 Balancing account - Indirect taxes Settlement accounts Residual assets and liabilities Total other assets and liabilities 3,594 4,135 2,607 3, Assets pledged to secure own liabilities and assets subject to ownership reservation At the balance sheet date the following assets were pledged or otherwise not freely disposable: Financial investments 10,085 12,119 Due from banks Current year in 1'000 CHF Previous year in 1'000 CHF At the balance sheet date there were no securities lending and borrowing transactions or repo-transactions outstanding. The pledged positions were assigned as collateral for securities settlements with custodian banks or for foreign exchange and derivative transactions with third parties. 3.7 Liabilities against own pension plans There are no liabilities against the company pension plan at the end of the reporting year outstanding. The pension plan qualifies as defined contribution plan. The company pension plan is guaranteed by the Baloise collective foundation for mandatory pension plans in Basle (Baloise collective foundation). There are no substantial reserves for the contribution to the pension plan by the employer available. For coverage of the benefit commitment the collective foundation has reinsured the risks with the Basle Life-insurance-association. The foundation is policyholder and beneficiary. An excess of coverage or a deficient coverage has no economic effect to the bank. Economic benefit/economic commitment and pension plan expenses Excess / Benefit Change Accrued Pension Pension deficient of the compared contributions plan plan coverage Bank to previous expenses expenses year current previous year year Baloise collective foundation Total Page

15 3.9 Valuation adjustments and provisions/reserve for general banking risks Balance, Specific Change in New Reversals Balance, end of usage definition of positions credited to end of preceding purpose charged to income current year (reclassification) income statement year statement Valuation adjustments and provisions for loan loss (credit and country risks) Other provisions Total valuation adjustment and provisions At the balance sheet date there were no reserves for general banking risks allocated Share capital Current year Previous year Total Number Dividend Total Number Dividend nominal of units bearing nominal of units bearing value capital value capital in 1'000 CHF Share capital 37, ,500 37,250 37, ,500 37,250 Participation certificate capital 15, ,500 15,882 15, ,500 15,882 Total Capital 53, ,000 53,132 53, ,000 53,132 Current year Previous year Dividend Participation Nominal Participation bearing in % in % capital in 1'000 CHF in 1'000 CHF Significant shareholders with voting rights Mizuho Securities Co., Ltd. Tokyo* 26,075 70% 26,075 70% Mizuho Corporate Bank, Ltd. Tokyo (100% MFG) 11,175 30% 11,175 30% Significant shareholders without voting rights Mizuho Securities Co., Ltd. Tokyo* 11,117 70% 11,117 70% Mizuho Corporate Bank, Ltd. Tokyo (100% MFG) 4,765 30% 4,765 30% * 95,8% owned by Mizuho Financial Group (MFG), Tokyo (quoted, widely diversified public-limited company) 3.11 Statement of changes in shareholders' equity Shareholders' equity, at the beginning of current year in 1'000 CHF Paid-in share capital 53,132 Legal reserves from capital contributions 2,500 General legal reserves from retained income 26,566 Other reserves from retained income 51,423 Retained earnings 2,241 Total shareholders' equity, at the beginning of current year (before profit distribution) Net income 275 Total shareholders' equity, at end of current year 136,137 Thereof Paid-in share capital 53,132 Legal reserves from capital contributions 2,500 General legal reserves from retained income 26,566 Other reserves from retained income 51,423 Retained earnings 2, ,862 Page

16 3.12 Maturity structure of current assets and liabilities Maturities At sight Within Within Within After Total 3 month 3 to months 5 years month to 5 years Current assets Cash 39,522 39,522 Due from banks 76,264 49,883 40, ,801 Due from customers 8,913 33,921 42,834 Financial investments 5,000 30,270 72,209 24, ,192 Total current assets 124,699 88,804 70,924 72,209 24, ,349 Previous year 68, ,774 96, ,398 9, ,094 Liabilities Due to banks 2, ,963 Due to customers, other 243, ,992 Total liabilities 246, ,955 Previous year 275, , Due from and due to affiliated entities and loans and exposures to members of the bank's governing bodies Due from affiliated entities 8,431-8,431 Due from member of the bank's governing bodies Due to affiliated entities Due to member of the bank's governing bodies Current year Previous year Change Throughout the entire financial year money market transactions have been maintained within the group companies and significant shareholders. These transactions were accomplished to the banks general conditions, as they were also applicable to third parties. Page

17 3.14 Assets/Liabilities by domestic and foreign origin Current year Previous year Domestic Foreign Domestic Foreign in 1'000 CHF Assets Cash 39,522 21,690 Due from banks 11, ,995 5, ,500 Due from customers 11,737 31,097 11,993 38,985 Financial investments 37,315 94,877 30, ,956 Fixed assets Accrued income and prepaid expenses 1,795 1,496 1,564 1,267 Other assets 875 2, ,022 Total assets 103, ,184 72, ,730 Liabilities and shareholders' equity Due to banks 2, ,192 2,511 Due to customers, other 69, ,816 76, ,497 Accrued expenses and deferred income Other liabilities 1,588 2,547 1,545 1,705 Valuation adjustments and provisions Share capital 53,132 53,132 Legal reserves from capital contributions 2,500 2,500 General legal reserves from retained income 26,566 26,566 Other reserves from retained income 51,423 51,423 Retained earnings 2,241 2,391 Net income / loss Total liabilities and shareholders' equity 210, , , , Assets by countries respectively country groups Current year Previous year in 1'000 CHF % share in 1'000 CHF % share Assets Switzerland 103, % 72, % Europe 163, % 242, % North- and Central America 24, % 25, % Latin America 4, % 4, % Australia 20, % 25, % Japan 64, % 38, % Asia 5, % 5, % Others 2, % 1, % Total assets 388, % 415, % Page

18 3.16 Balance sheet by currencies Currencies CHF USD EUR JPY Other Total Assets Cash 39, ,522 Due from banks 23,513 42,575 32,637 59,042 9, ,801 Due from customers 856 7,081 1,675 29,452 3,770 42,834 Financial investments 132, ,192 Fixed assets Accrued income and prepaid expenses 2, ,291 Other assets 3,594 3,594 Total in-balance assets 202,818 49,832 34,457 88,523 12, ,444 Due from forex forward transactions 3,210 27,857 93,304 97,145 6, ,924 Total assets 206,028 77, , ,668 19, ,368 Liabilities and shareholders' equity Due to banks 5 2, ,963 Due to customers, other 61,757 47,482 34,294 88,453 12, ,992 Accrued expenses and deferred income Other liabilities 4, ,135 Valuation adjustments and provisions Share capital 53,132 53,132 Legal reserves from capital contributions 2,500 2,500 General legal reserves from retained income 26,566 26,566 Other reserves from retained income 51,423 51,423 Retained earnings 2,241 2,241 Net income Total Liabilities and shareholders' equity 203,149 49,652 34,294 88,555 12, ,444 Liabilities from forex forward transactions 3,207 27,858 93,297 97,152 6, ,924 Total liabilities 206,356 77, , ,707 19, ,368 Net position per currency Page

19 4. Information on off balance transactions 4.1 Breakdown of contingent liabilities Contingent liabilities - Credit guarantees Standby guarantees Current Year Previous Year Change Breakdown of irrevocable commitments Irrevocable commitments - Commitment to deposit insurance association Current Year Previous Year Change Outstanding derivative instruments (Trading instruments) Foreign exchange Forward contracts, including FRAs 1,758 1, ,271 Options (OTC) 1,292 1, ,290 Total replacement values 3,050 2, ,561 Positive Negative Contract replacement replacement volume value value Analysis by counterparties Banks and derivative traders 806 2, ,634 Brokers Customers with collateral 2, ,927 Total as per balance sheet 3,050 2, ,561 Analysis by remaining periods Up to 3 months 2,012 1, ,063 3 to 12 months 1,038 1, ,498 Total as per balance sheet 3,050 2, ,561 Total before consideration of netting agreements 3,050 2,953 Total after consideration of netting agreements 2,509 2,412 As per 31 March 2013 there were no own hedging positions. 4.4 Breakdown of fiduciary transactions Fiduciary transactions Fiduciary placements 94, , ,958 - of which fiduciary placements with third parties 19,990 33,686-13,696 - of which fiduciary placements with group banks 74, , ,262 Fiduciary loans Other fiduciary transactions Total fiduciary transactions 94, , ,958 Current year Previous year Change Page

20 4.5 Customer assets Current year Previous year Change Type of customer assets - Assets of collective Investment instruments managed by the bank 44,378 37,974 6,404 - Discretionary assets 33,424 31,399 2,025 - Other customer assets 745, ,215-52,563 Total customer assets (incl. Double counts)* 823, ,588-44,134 - of which double counts 44,378 37,974 6,404 - Net New Assets increase/decrease** -106,474 19,099 * Current accounts, fiduciary transactions and all evaluated custody accounts Custody-only accounts are not considered ** Money transfer and delivery of securities Debited or credited interests are not considered Additional information about net new assets increase/decrease Comment: Net assets decrease from institutional investors Net assets decrease (discretionary assets and other customer assets) Net Assets decrease Amount in 1'000 CHF -71,121-35, ,474 The Global Wealth Management Division of the bank had a decrease in customer assets of Swiss Francs 35 million of which assets from Asia based clients had an increase of Swiss Francs 13 million and assets from non-asia based clients were decreased by Swiss Francs 48 million. There was a strategic decrease of Swiss Francs 71 million from institutional investors. Page

21 5. Information on profit and loss accounts 5.2 Analysis of results from trading operations Current year Previous year Change - Foreign exchange and banknotes Securities - Interest bearing instruments Total income from trading operations Analysis of personnel expenses Current year Previous year Change - Salaries -3,995-3, Social benefits Other personnel expenses Total personnel expenses -4,764-4, Analysis of other operating expenses Current year Previous year Change - Rent expenses Information technology, machinery, fixtures and fittings, vehicles and other facilities - Other business expenses Total other operating expenses -2,067-2, Other information on extraordinary items and material release of hidden reserves During the period under review no hidden reserves were created nor released. In addition, no extraordinary income or expense are stated in the income statement. Page

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