NATURE, EXTENT, AND FINANCIAL EFFECTS OF INTERESTS IN JOINT ARRANGEMENTS

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1 250 DZ BANK ANNUAL REPORT NATURE, EXTENT, AND FINANCIAL EFFECTS OF INTERESTS IN JOINT ARRANGEMENTS ČESKOMORAVSKÁ STAVEBNÍ SPOŘITELNA Českomoravská stavební spořitelna, a.s., (ČMSS) is a joint venture between BSH and the Czech Republic s largest bank, Československá obchodní banka, a.s. (ČSOB). ČMSS is headquartered in Prague, Czech Republic. It is one of Europe s largest building societies. ČMSS is a leading provider of home savings and home inance products in the Czech Republic, with 1.5 million customers. BSH s shareholding was 45.0 percent on the balance sheet date, as it had been at December 31,. he other 55.0 percent is held by ČSOB (December 31, : 55.0 percent). In the DZ BANK Group, the interests in ČMSS are accounted for using the equity method. ČMSS paid a dividend of 19 million to BSH in (: 23 million).» 30 INTERESTS IN JOINT ARRANGEMENTS AND ASSOCIATES Aggregated inancial information for ČMSS: Current assets 993 1,111 of which: cash and cash equivalents Non-current assets 4,672 4,835 Current liabilities 1,321 1,196 of which: financial liabilities 1,224 1,153 Non-current liabilities 3,994 4,407 of which: financial liabilities 3,980 4,335 Interest income Interest expense Fee and commission income Fee and commission expenses Administrative expenses Income taxes Profit from continuing operations, net of tax Other comprehensive income 6 1 Total comprehensive income interests in ČMSS: Total net assets Share of net assets Carrying amount under the equity method

2 DZ BANK ANNUAL REPORT 251 PRVÁ STAVEBNÁ SPORITEĽŇA Prvá stavebná sporiteľňa a.s. (PSS) is a joint venture between BSH and its partners Raifeisen Bausparkasse Wien, Slovenská sporiteľňa, and Erste Bank, Vienna, Austria. PSS is headquartered in Bratislava, Slovakia. It is the market leader for building society operations in Slovakia, with around 760,000 customers. BSH s shareholding in PSS was 32.5 percent on the balance sheet date, as it had been at December 31,. In the DZ BANK Group, the interests in PSS are accounted for using the equity method. PSS paid a dividend of 7 million to BSH in (: 8 million). Aggregated inancial information for PSS: Current assets of which: cash and cash equivalents 19 Non-current assets 2,250 2,195 Current liabilities of which: financial liabilities Non-current liabilities 1,852 1,810 of which: financial liabilities 1,832 1,791 Interest income Interest expense Fee and commission income Fee and commission expenses -1-2 Administrative expenses Income taxes -8-7 Profit from continuing operations, net of tax Other comprehensive income 3 16 Total comprehensive income interests in PSS: Total net assets Share of net assets Carrying amount under the equity method 85 84

3 252 DZ BANK ANNUAL REPORT ZHONG DE ZUH FANG CHU XU YIN HANG (SINO-GERMAN-BAUSPARKASSE) Zhong De Zuh Fang Chu Xu Yin Hang (Sino-German-Bausparkasse) (SGB) is a joint venture between BSH and China Construction Bank Corporation, Beijing, China. SGB is headquartered in Tianjin, China. Its business activities are concentrated in the regions of Tianjin (population of approx. 13 million) and Chongqing (population of approx. 30 million). BSH s shareholding in this Chinese building society was 24.9 percent on the balance sheet date, as it had been at December 31,. In the DZ BANK Group, the interests in SGB are accounted for using the equity method. he equity method is applied to SGB on the basis of inancial statements prepared in accordance with Chinese Accounting Standards. SGB did not pay a dividend in, as had been the case in the previous year. Aggregated inancial information for SGB: Current assets of which: cash and cash equivalents Non-current assets 3,159 2,512 Current liabilities 2,945 2,495 of which: financial liabilities 2,902 2,461 Non-current liabilities of which: financial liabilities Interest income Interest expense Fee and commission income Fee and commission expenses Administrative expenses Income taxes -9-8 Profit from continuing operations, net of tax Other comprehensive income Total comprehensive income interests in SGB: Total net assets Share of net assets Cumulative impairment losses on the carrying amount of the investment Carrying amount under the equity method 81 76

4 DZ BANK ANNUAL REPORT 253 DEUTSCHE WERTPAPIERSERVICE BANK Deutsche WertpapierService Bank AG, Frankfurt am Main, (dwpbank) is a joint venture of DZ BANK and is included in the DZ BANK Group s inancial statements using the equity method. dwpbank is headquartered in Frankfurt am Main. Its capital is divided into 20,000,000 voting registered shares with transfer restrictions. DZ BANK holds a 50.0 percent stake in dwpbank, as it did in the previous year. he equity method is applied to dwpbank on the basis of inancial statements prepared in accordance with HGB. he shares in dwpbank are not traded in an active market. dwpbank paid a dividend of 1 million to DZ BANK in (: 2 million). Aggregated inancial information for dwpbank: Assets Liabilities of which: financial liabilities dwpbank only has a small amount of cash and cash equivalents. Interest income 4 4 Interest expense -1-1 Fee and commission income Fee and commission expenses Administrative expenses Income taxes -6-4 Profit from continuing operations, net of tax 11 1 Total comprehensive income 11 1 interests in dwpbank: Total net assets Share of net assets Capitalization of goodwill Carrying amount under the equity method

5 254 DZ BANK ANNUAL REPORT VB-LEASING INTERNATIONAL VB-Leasing International Holding GmbH, Vienna, Austria, (VBLI) is a joint venture of VR LEASING and is included in the DZ BANK Group s inancial statements using the equity method. VBLI is headquartered in Vienna, Austria. he company focuses on holding equipment leasing companies in central and eastern Europe. VR LEASING s shareholding in VBLI was 50.0 percent on the balance sheet date, as it had been at December 31,. VBLI paid a dividend of 65 million to VR LEASING in (: 9 million). Aggregated inancial information for VBLI: Current assets Non-current assets Current liabilities of which: financial liabilities Non-current liabilities of which: financial liabilities Interest income Interest expense Fee and commission income 1 5 Fee and commission expenses -1 Administrative expenses Income taxes Profit (loss) from continuing operations, net of tax 2-7 Other comprehensive income / loss Total comprehensive income / loss -5 3 interests in VBLI: Total net assets Share of net assets Cumulative impairment losses on the carrying amount of the investment Carrying amount under the equity method 9 65

6 DZ BANK ANNUAL REPORT 255 OTHER JOINT VENTURES he carrying amount of the equity-accounted joint ventures that, individually, are not material totaled 138 million on the balance sheet date (December 31, : 127 million). Aggregated inancial information for equity-accounted joint ventures that, individually, are not material: Share of profit from continuing operations, net of tax 4 12 Share of total comprehensive income 4 12 NATURE, EXTENT, AND FINANCIAL EFFECTS OF INVESTMENTS IN ASSOCIATES EQUENS Equens SE, Utrecht, Netherlands, (Equens) is one of Europe s biggest providers of payments processing services. It is located in Germany, the Netherlands, Italy, the United Kingdom, and Finland and covers the entire European market. Equens is headquartered in Utrecht, Netherlands. As it had been a year earlier, DZ BANK was the company s largest shareholder on the balance sheet date with a stake of 31.1 percent. Equens is accounted for under the equity method in the consolidated inancial statements. Its shares are not quoted in an active market. Equens did not pay a dividend to DZ BANK in (: no dividend). Aggregated inancial information for Equens: Current assets of which: cash and cash equivalents Non-current assets Current liabilities of which: financial liabilities 1 11 Non-current liabilities Revenue Administrative expenses Income taxes -2 1 Loss from continuing operations, net of tax -4-7 Profit from discontinued operations, net of tax 1 Other comprehensive income / loss 27-6 Total comprehensive income / loss 24-13

7 256 DZ BANK ANNUAL REPORT interests in Equens: Total net assets Share of net assets Capitalization of goodwill Cumulative impairment losses on the carrying amount of the investment Carrying amount under the equity method CASSA CENTRALE BANCA Cassa Centrale Banca Credito Cooperativo del Nord Est S.p.A., Trento, Italy, (CC Banca) is a cooperative central institution for more than 100 regional cooperative banks in northeast Italy (Trento, Veneto, Friuli Venezia). It is headquartered in Trento. CC Banca assists the UMH subgroup and the R+V subgroup with their Italian activities. he investment also supports pan-european collaboration in the cooperative sector. DZ BANK holds 25.0 percent of the shares in CC Banca (as it had in the previous year) and has 26.5 per cent of the voting rights. he shares in CC Banca are not quoted in an active market. In the DZ BANK Group, the interests are accounted for using the equity method. CC Banca paid a dividend of 2 million to DZ BANK in (: 2 million). Aggregated inancial information for CC Banca: Assets 5,524 8,468 of which: cash and cash equivalents Liabilities 5,272 8,231 of which: financial liabilities 5,084 8,010 Interest income Interest expense Fee and commission income Fee and commission expenses Administrative expenses Income taxes Profit from continuing operations, net of tax Total comprehensive income 15 19

8 DZ BANK ANNUAL REPORT 257 interests in CC Banca: Total net assets Share of net assets Capitalization of goodwill 4 4 Cumulative impairment losses on the carrying amount of the investment Carrying amount under the equity method OTHER ASSOCIATES he carrying amount of the equity-accounted associates that, individually, are not material totaled 254 million on the balance sheet date (December 31, : 214 million). Aggregated inancial information for equity-accounted associates that, individually, are not material: Share of profit from continuing operations, net of tax 6 6 Share of profit from discontinued operations, net of tax 1 Share of other comprehensive income / loss -5 Share of total comprehensive income 1 7 Structured entities are entities that have been designed so that voting rights or similar rights are not the dominant factor in deciding who controls the entity. he DZ BANK Group distinguishes between the following types of interests in unconsolidated structured entities, based on their design and the related risks: Interests in investment funds issued by the DZ BANK Group, Interests in investment funds not issued by the DZ BANK Group, Interests in securitization vehicles, Interests in asset-leasing vehicles.» 31 INTERESTS IN UNCONSOLIDATED STRUCTURED ENTITIES INTERESTS IN INVESTMENT FUNDS ISSUED BY THE DZ BANK GROUP he interests in the investment funds issued by the DZ BANK Group largely comprise investment funds issued by entities in the Union Investment Group in accordance with the contractual

B Disclosure of interests in other entities

244 DZ BANK ANNUAL REPORT B Disclosure of interests in other entities PROPORTION OF THE DZ BANK GROUP S ACTIVITIES AND CASH FLOW ATTRIBUTABLE TO NON CONTROLLING INTERESTS» 29 INVESTMENTS IN SUBSIDIARIES