CpiFim

Quarterly Report • Apr 21, 2011

ORCO PROPERTY GROUP

SOCIETE ANONYME

STAND ALONE FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2010

40 Parc d"Activités Capellen L-8308 Capellen R.C.S. Luxembourg : B 44.996 Orco Property Group"s Board of Directors has approved on 13 April 2011 the stand alone financial statements for the year ended 31 December 2010. All the figures in this report are presented in Euros, except if otherwise explicitly stated.

I. Statement of comprehensive income

The accompanying notes form an integral part of these stand alone financial statements.

		Year ended 31 December
	Note	2010	2009
Revenue		7 197 535	999 397
Administrative expenses	14	(13 046 523)	(9 970 799)
Net gain/(loss) on disposal of tangible assets		(5 976)	(40 468)
Net gain/(loss) on disposal of financial assets	16	(12 957 197)	(16 596 417)
Employee benefits	14	(1 772 058)	(1 233 142)
Amortisation, impairments and provisions	7,9	(110 609 494)	(201 531 746)
Interest expenses	12	(4 436 390)	(6 269 606)
Interest income	9	30 539 497	39 589 799
Income from participating interests	-	4 683 905	18 341 679
Foreign exchange result	15	12 958 327	1 689 283
Net gain/(loss) on financial instruments at fair value through profit or loss	17	11 618 571	(21 965 935)
Operating result		(75 829 803)	(196 987 955)
Interest expenses on bonds	11	(34 363 091)	(39 945 703)
Other net financial results	18	277 731 075	(2 002 072)
Financial result		243 367 984	(41 947 775)
NET RESULT BEFORE INCOME TAXES		167 538 181	(238 935 730)
Income taxes	19	-	-
NET RESULT FOR THE YEAR		167 538 181	(238 935 730)
Other comprehensive income		-	-
TOTAL COMPREHENSIVE INCOME FOR THE YEAR		167 538 181	(238 935 730)
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO OWNERS OF THE COMPANY		167 538 181	(238 935 730)
Basic earnings per share	20	12,75	(22,26)
Diluted earnings per share	20	5,37	(22,26)

II. Balance sheet

The accompanying notes form an integral part of these stand alone financial statements.

			As at 31 December
ASSETS	Note	2010	2009	2008
NON-CURRENT ASSETS
Intangible assets	5	538 878	37 050	-
Fixtures and fittings	6	445 828	291 104	561 649
Shares in affiliated undertakings	7	231 450 626	234 940 543	350 264 112
Financial assets at fair value through profit or loss	8	10 324 771	10 061 618	28 517 354
Loans to affiliated undertakings and other financial assets	9	215 159 034	303 992 749	378 583 131
TOTAL - NON-CURRENT ASSETS		457 919 137	549 323 064	757 926 246
CURRENT ASSETS
Trade and other receivables	-	1 385 027	3 739 989	3 857 370
Current financial assets	-	158 137	770 485	2 233 855
Cash and cash equivalents	10	4 813 519	4 464 324	6 051 983
TOTAL - CURRENT ASSETS		6 356 683	8 974 798	12 143 208
TOTAL - ASSETS		464 275 820	558 297 862	770 069 454

			As at 31 December
EQUITY AND LIABILITIES	Note	2010	2009	2008
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY
Ordinary shares	21	57 620 851	44 869 851	44 869 851
Share premium	21	403 988 245	400 524 345	400 524 345
Other reserves	-	2 858 533	3 297 903	(7 080 988)
Retained earnings	-	(211 162 747)	(378 460 401)	(130 186 888)
TOTAL - EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY		253 304 882	70 231 698	308 126 320
TOTAL - EQUITY		253 304 882	70 231 698	308 126 320

			As at 31 December
LIABILITIES	Note	2010	2009	2008
NON-CURRENT LIABILITIES
Bonds	11	153 501 691	336 355 100	342 643 627
Loans from affiliated undertakings	12	34 561 947	58 350 230	84 094 587
Derivative financial instruments	11	-	9 539 998	10 753 756
TOTAL - NON-CURRENT LIABILITIES		188 063 638	404 245 328	437 491 970
CURRENT LIABILITIES
Trade and other payables	13	11 392 023	22 321 234	9 435 788
Bonds	11	8 978 470	58 996 149	11 075 469
Derivative financial instruments	11	1 136 807	2 439 553	3 439 907
Provisions for other liabilities and charges	-	1 400 000	63 900	500 000
TOTAL - CURRENT LIABILITIES		22 907 300	83 820 836	24 451 164
TOTAL - LIABILITIES		210 970 938	488 066 164	461 943 134
TOTAL - EQUITY AND LIABILITIES		464 275 820	558 297 862	770 069 454

III. Statement of changes in equity

The accompanying notes form an integral part of these stand alone financial statements.

ATTRIBUTABLE TO OWNERS OF THE COMPANY

		Share	Share	Other	Retained	Equity
	Note	capital	premium	reserves	earnings
Balance at 1 January 2009		44 869 851	400 524 345	(7 080 988)	(130 186 888)	308 126 320
Comprehensive income for the year :
Gain/(loss) of the year	-	-	-	-	(238 935 730)	(238 935 730)
Own equity instruments	21	-	-	10 378 891	(9 337 783)	1 041 108
Balance at 31 December 2009		44 869 851	400 524 345	3 297 903	(378 460 401)	70 231 698
Comprehensive income for the year :
Gain/(loss) of the year	-	-	-	-	167 538 181	167 538 181
Capital increase	21	12 751 000	3 463 900	-	(86 075)	16 128 825
Own equity instruments	21	-	-	(439 370)	(154 452)	(593 822)
Balance at 31 December 2010		57 620 851	403 988 245	2 858 533	(211 162 747)	253 304 882

IV. Statement of cash flows

The accompanying notes form an integral part of these stand alone financial statements.

		Year ended 31 December
	2010	2009
Cash flows from operating activities
Operating result	(75 829 803)	(196 987 955)
Amortisation, impairments and provisions	110 609 494	201 531 746
Net gain/(loss) on financial instruments at fair value	(11 618 571)	21 965 935
Net result on disposal of assets	12 963 173	16 636 884
Net interest income	(26 103 107)	(33 320 194)
Loans granted to subsidiary undertakings	(11 583 231)	(3 951 219)
Changes in operating assets and liabilities	(15 475 518)	(14 862 398)
Net cash used in operations	(17 037 563)	(8 987 200)
Cash flows from investing activities
Acquisition of subsidiary, net of cash acquired	(153 270)	-
Proceeds from assets sales	718 786	5 304 520
reimbursement share premium	2 039 000	-
Acquisition of other financial investments	(35)	(911 424)
Dividend received from subsidiary undertakings	-	4 066 000
Net cash used in investing activities	2 604 481	8 459 096
Cash flows from financing activities
Proceeds from issuance of ordinary shares	16 214 900	-
Net interest received/(paid)	(1 523 692)	(1 437 163)
Net cash used in financing activities	14 691 208	(1 437 163)
Net (decrease)/increase in cash and cash equivalents	258 126	(1 965 267)
Cash, cash equivalents and bank overdrafts at beginning of the year	4 464 324	6 051 983
Exchange gains/(losses) on cash and cash equivalents	91 069	377 608
Cash and cash equivalents at end of year	4 813 519	4 464 324

Notes to the stand alone financial statements

1. General information

Orco Property Group, société anonyme ("the Company") was incorporated under the Luxembourg Companies Law on September 9, 1993 as a limited liability company (société anonyme) for an unlimited period of time.

The address of its registered office is 40, Parc d"activités Capellen, L-8308 Capellen.

The Company has for object the taking of participating interests, in whatsoever form in either Luxembourg or foreign companies, especially in real estate companies in Germany, Czech Republic, Hungary, Poland and other countries of Eastern Europe and the management, control and development of such participating interests. The Company, through its subsidiaries (together "the Group"), develops real estate projects as promoter as well as it rents and manages real estate and hotel properties composed of office buildings, apartments with services, luxury hotels and hotel residences.

The Company is listed on the Euronext Paris stock exchange, the Prague stock exchange, the Budapest stock exchange and the Warsaw stock exchange and prepares consolidated accounts in accordance with IFRS as adopted by the EU, which can be obtained at the registered office.

These stand alone financial statements have been approved for issue by the Board of Directors on 13 April 2011.

The Board of Directors has the power to amend the stand alone financial statements after issue.

2. Summary of significant accounting policies

The principal accounting policies applied in the preparation of these stand alone financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

The stand alone financial statements are presented in Euros and have been prepared under the historical cost convention except some financial assets carried at fair value through profit or loss.

2.1 Basis of preparation and Going concern

The stand alone financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union, and as permitted by Luxembourg Law dated 10 December 2010.

2.1.1 Going concern

In determining the appropriate basis of preparation of the stand alone financial statements, the Directors are required to consider whether the Company can continue in operational existence for the foreseeable future. The Company"s financial risks including foreign exchange risk, fair value risk, cash flow risk, interest rate risk, price risk, credit risk and liquidity risk are outlined in note 3. In general, the situation has improved compared to the one described in the 2009 and 2008 stand alone and consolidated financial statements. The Company has invested in subsidiaries holding real estate assets and has granted loans to these entities. The economic environment in which the Group operates has stabilized or topped out on most of the markets where the Group is active. Even though the valuation of certain investment properties and residential developments held by some Company"s subsidiaries further decreased, the Company has made progress in the implementation of its restructuring plans allowing the same conclusion on the going concern.

2.1.1.1 2010 results

Over 2010, the Company has made a net profit of EUR 167.5 million. The Company recorded a gain of EUR 281.8 million upon derecognition of the Company"s bonds as a result of the approval of the Safeguard plan but recognized additional impairments for a net total of EUR 110.6 million from which additional impairments on shares in affiliated undertakings for EUR 61.1 million and additional impairments on loans to affiliated undertakings for EUR 50.6 million.

The operational achievements and successful restructuring of its subsidiaries" activities is essential for the Company to recover its initial investment in their equity and the principal of the loans granted.

2.1.1.2 "Procédure de Sauvegarde" (Safeguard Procedure)

Beginning of 2009, the Company"s Board of Directors decided to apply protection from creditors by a French court, the Safeguard Procedure. A Court Hearing was held on 25 March 2009 with the Paris Commercial Court ("Tribunal de Commerce de Paris"). On the same day, the Court rendered a judgement opening the Safeguard Procedure for the Company, and Vinohrady S.à r.l., a French subsidiary, for a renewable six months period. During the Safeguard Procedure, the Company is exempted to repay all the liabilities prior to the judgement pronouncement while interests on debts and bonds continue to be accrued based on contractual arrangements.

The initial period has been prolonged twice with the last period to be ended in June 2010 at the latest. The Safeguard plan (i.e. the proposed schedule for admitted claims" repayment supported by a long term business plan) was circularized to creditors on 31 March 2010. A majority of 57.42% of creditors were in favour of the proposed plan. The details of the Safeguard plan were published in the management report accompanying the 2009 consolidated financial statements. On 19 May 2010, the Court approved the Company"s Safeguard plan. This plan combines a strategic and operational restructuring plan and a debt rescheduling plan. The rescheduling plan aims at repaying 100% of the admitted claims, including nominal, accrued interests, and interests to accrue during the Safeguard plan, over ten years as per the schedule below, with effect from 30 April 2010 and a first repayment on 30 April 2011. This repayment schedule is consistent with the Group"s business plan and reflects the necessity for the Group to invest in its development projects and assets.

Year	2011	2012	2013	2014	2015
% of the total liability	2%	5%	5%	5%	5%

Year	2016	2017	2018	2019	2020
% of the total liability	5%	10%	14%	20%	29%

The Court appointed Maître Laurent le Guernevé as "Commissaire à l'exécution du plan" in charge of overseeing the performance of the Company in implementing the Safeguard plan. Maître Le Guernevé will more specifically be in charge of distributing among the Company's creditors the amounts that are due to them under the Safeguard plan.

The judgment approving the Safeguard plan ended the observation period opened in 25 March 2009 and allows the Company to carry out its activity as it did prior to the opening of the Safeguard Procedure.

On 10 June 2010, a third party filed an opposition with the Commercial Court of Paris regarding the 19 May 2010 judgment that approved the Company"s Safeguard plan. This third party opposition was filed by Maître François Kopf, attorney for bondholder representative for the « OBSAR 2010 » (ISIN FR0010249599), « CONVERTIBLE 2013 » (ISIN FR0010333302), and « OBSAR 2014 » (ISIN XS0291838992 and XS029184062). Regarding these three bonds, the third party opposition contests the maximum bond liability to be reimbursed within the Safeguard plan. The Court hearing was deferred until April 2011.

2.1.1.3 Restructuring plan implemented by the Company management in the Group

The Safeguard Procedure has provided a legal time frame for the implementation of the restructuring plan of the Group that enabled the Company to accelerate its transition to the "new Orco":

• simplified and streamlined in terms of business and geographical presence;
• integrated in terms of ownership and control of its subsidiaries;
• focused on a cash flow sustainable holding company;
• adapted and lighter cost-structure;
• lowered pressure on the short term liquidity by the restructuring of its bond and bank debts;
• preserved potential of the development pipeline.

Many progresses have been made in the restructuring plan of the Company under the protection of the Safeguard procedure opened on 25 March 2009 and after the approval of the Safeguard plan:

• The Safeguard plan proposing a term out over ten years of all the Company debts has been approved even though a third party opposition has been filed (see above).
• In its restructuring plan, the Company has identified assets and activities which are not strategic and/or which financing or cash flows are problematic. Those assets and activities have to be restructured or sold if restructuring can"t be achieved in the short or medium term. While some of these assets or activities have already been sold, the restructuring of the assets and activities is not finalized yet. The success in selling those assets is essential to the realization of the business plan.

• Some major Group bank loans have been successfully renegotiated since the beginning of the Safeguard Procedure by either solving existing and potential covenants" breaches or extending construction credit lines repayment schedules. Negotiations are still continuing on the remaining debts with existing or potential covenants breaches and for assets and developments where restructuring needs have been identified in the restructuring plan.

• The restructuring of the operations and teams has already led to significant operating expenses decrease compared to 2008 and 2009. Further decreases are expected in 2011 with the decrease in the legal and consulting costs specific to the Safeguard Procedure or litigations with minority shareholders, the restructuring of Orco Germany (fully consolidated subsidiary held at 58.94% as at 31 December 2010, "OG") and the restructuring of the group management in two business lines (Development and Asset Management).

• The management is currently discussing with all its joint venture and investment partners in order to restore the liquidity of its loans granted to these joint ventures by having them repaid either in cash or converted in equity. In particular, some achievements with agreements finalized can already be reported :
• An agreement has been finalized and executed in July 2010 with the Hospitality joint venture partner whereby EUR 20 million out of the Company EUR 46 million shareholder loan has been restructured. The joint venture"s partner has injected EUR 5 million in cash in Hospitality Invest for partial repayment to the Company, while EUR 10 million of shareholder loan has been converted into equity in the joint venture leaving both partners at a 50% shareholding but increasing the rights of the Company in the future cash flow of the joint venture.
• An agreement has been finalized in March 2011 with the CPF (Croatian state privatization fund holding 32% of the shares of Suncani Hvar d.d.). This agreement is a first step aiming at putting an end to the different shareholders disputes and assuring long term financing of the business.
• The risks on the implementation of the Safeguard plan (particularly on the timing of the non core asset sales forecasted to finance the equity part of the development of the existing land bank) have been mitigated in April 2010 by the completion of three capital increases in cash amounting to EUR 16.2 million that were not included in the sources of funds considered in the business plan. The new investors are professional investment funds, such as Axa Investment Managers, Neptune Invest, Alandia Investissements, Lansdowne Capital, Hillgrove Investments Group and Finplat. The Company issued a total of 3,110,000 new shares, priced at EUR 5.61 (for the first capital increase) and EUR 5.00 (for the 2nd and 3rd capital increases). The price per share in the 2nd and 3rd capital increases reflects the fact that the new shares remain in the form of registered shares until a prospectus is approved by the CSSF. Initially, these capital increases were legally challenged by certain shareholders but the Company entered into an agreement beginning of 2011 putting an end to these litigation procedures.

On 24 January 2011, the CSSF approved the prospectus for the new shares issued in the second and third capital increases. The prospectus has been duly pass ported with the French Autorité des Marchés Financiers on 25 January 2011. Consequently, the Company applied for listing the corresponding shares for trading on the regulated markets of NYSE Euronext in Paris, the Prague Stock Exchange, the Warsaw Stock Exchange and the Budapest Stock Exchange. As of the publication of this report, all four above-mentioned stock exchanges admitted the 2,020,000 ordinary shares of the Company to.

2.1.1.4 Risks and uncertainties on the ability of the Company to continue as a going concern

While the Safeguard plan has been approved on the basis of a business plan supported by the Board of Directors and estimated as achievable by the Commercial Court, the Juge Commissaire and the Mandataire judiciaire, the Company"s status as a going concern depends mainly and directly on its capacity to implement the Safeguard plan as approved by the Commercial Court in Paris. Nevertheless, would the creditors be successful in challenging the Safeguard plan, the Court may decide to put the Company in a rehabilitation or judicial liquidation proceeding. A rehabilitation proceeding or judicial liquidation may materially adversely affect the Company's business, financial condition, results of operations or prospects. The Company sees the risk of this opposition being accepted as remote.

Some subsidiaries and joint ventures held by the Company require funding to continue as a going concern. The business plan is built on the capacity of the Company to generate sufficient cash from its profitable activities in order to support the assets that are currently in development or restructuring.

The financial performance of the Company is also dependent upon the wider economic environment in which the Company operates. The uncertainty of the evolution of real estate market in Central Europe could damage the Company"s activity and slow down the asset sales program. It should be noted that this environment has generally been stabilized over the last 15 months.

The Board of Directors is in the opinion that those risks are mitigated by the reasonability of the assumptions taken in the establishment of the business plan and the capital increases completed over the year of 2010.

2.1.1.5 Conclusion

The Board of Directors has, as a result of the approval of the Safeguard plan and the restructuring currently being implemented and considering the risks and uncertainties described above, concluded that there is a reasonable expectation that the Company can continue its operations in the foreseeable future and, accordingly, has formed a judgment that it is appropriate to prepare the stand alone financial statements as at 31 December 2010 on a going concern basis.

2.1.2 Critical accounting estimates and judgements

The preparation of stand alone financial statements requires the use of certain critical accounting estimates. It also requires management to exercise judgment in the process of applying the Company"s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the stand alone financial statements are disclosed in note 4.

2.1.3 First time application of IFRS to the Company stand alone accounts

These stand alone financial statements represent the first stand alone financial statements of the Company prepared in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB) and approved by the European Union. The Company adopted IFRS and applied IFRS 1, First-time Adoption of International Financial Reporting Standards, as of 1 January 2009 ("Transition Date"). In accordance with IFRS, the Company has:

• o provided comparative financial information;
• o applied the same accounting policies throughout all periods presented;
• o retrospectively applied all effective IFRS standards as of 31 December 2010, as required, and
• o considered certain optional exemptions and mandatory exceptions as applicable for first time IFRS adopters.

The Company"s stand alone financial statements were previously prepared in accordance with Luxembourg legal and regulatory requirements applicable to the preparation of annual accounts ("Lux GAAP").

In preparing its opening IFRS balance sheet, the Company has adjusted amounts reported previously in stand alone financial statements prepared under Lux GAAP. An explanation of how the transition from Lux GAAP to IFRS has affected the Company"s financial position, financial performance and cash flows is set out in the following tables and notes that accompany the tables (see note 2.1.3.2).

2.1.3.1 Exemptions and exceptions for first time adopters

IFRS 1 lists applicable exemptions options and mandatory exceptions applicable in the conversion from Lux GAAP to IFRS. No optional exemption has been applied and no mandatory exception is applicable to the Company:

• o Application of IFRS 3, "Business combinations", prospectively from the transition date or from a specific date prior to the transition date as IFRS 3 does not apply to stand alone accounts of the Company.
• o No items of property, plant and equipment have been recognized at fair value as at 1 January 2009.
• o Reset to zero of cumulative translation gains and losses to be at the transition date in accordance with IAS 21 as there is no such cumulative differences in the stand alone accounts of the Company.
• o Relief from applying IAS 19, "Employee benefits", for the recognition of actuarial gains and losses as there is no employee benefit plans in the Company.
• o Share-based payment (IFRS 2) and leases (IAS 17), as the exemption is not applicable to the Company.
• o Insurance contracts (IFRS 4), as this is not relevant of the company"s operations.
• o Assets and liabilities included in the Group consolidated financial statements that are applicable to stand alone financial statements are included at the same carrying amount.
• o Compound financial instruments, as the exemption is not applicable to the Company.
• o Decommissioning liabilities included in the cost of land, buildings and equipment, as the Company does not have liabilities of this type.
• o Financial assets or intangible assets accounted for under IFRIC 12, as the Company has not entered into agreements within the scope of IFRIC 12.
• o No hedge accounting is applied by the Company.
• o Derecognition of financial assets and financial liabilities, as the exception is not applicable to the Company.
• o Non-controlling interests, as the exception is not applicable to the Company.

2.1.3.2 Reconciliations of Lux GAAP to IFRS

IFRS 1 requires an entity to reconcile equity, comprehensive income and cash flows for prior periods. The Company"s firsttime adoption did not have an impact on the total operating, investing or financing cash flows; in addition, no cash flow statement was presented under Lux Gaap. The following tables represent the reconciliations from Lux GAAP to IFRS for the respective periods noted for equity, earnings and comprehensive income.

Reconciliation of shareholder's equity as at 1 January 2009

Reconciliation of Lux GAAP to IFRS

(in EUR)	Under	Own equity	Bonds	Bonds	Other	Under
	LUX GAAP	instruments	debts	derivatives	Transfers	IFRS
ASSETS
Tangible assets	561 649	-	-	-	-	561 649
Shares in affiliated undertakings	350 264 112	-	-	-	-	350 264 112
Financial assets at fair value through profit or loss	28 517 354	-	-	-	-	28 517 354
Loans to affiliated undertakings and other financial assets (1)	354 062 039	-	-	-	24 521 092	378 583 131
TOTAL - NON-CURRENT ASSETS	733 405 154	-	-	-	24 521 092	757 926 246
Loans to affiliated undertakings and other financial assets	24 803 880	-	-	-	(24 803 880)	-
Trade and other receivables	3 574 582	-	-	-	282 788	3 857 370
Current financial assets (2)	9 792 722	(814 353)	(6 744 514)	-	-	2 233 855
Cash and cash equivalents	6 051 983	-	-	-	-	6 051 983
TOTAL - CURRENT ASSETS	44 223 167	(814 353)	(6 744 514)	-	(24 521 092)	12 143 208
Prepayments and accrued income	12 577 293	-	(12 577 293)	-	-	-
TOTAL - PREPAYMENTS AND ACCRUED INCOME	12 577 293	-	(12 577 293)	-	-	-
TOTAL – ASSETS	790 205 614	(814 353)	(19 321 807)	-	-	770 069 454
LIABILITIES
Provisions for taxes	698 855	-	-	-	(698 855)	-
Other provisions	8 060 589	-	-	-	(8 060 589)	-
TOTAL - PROVISIONS FOR LIABILITIES AND CHARGES	8 759 444	-	-	-	(8 759 444)	-
Bonds	427 632 875	-	(84 989 248)	-	-	342 643 627
Loans from affiliated undertakings	41 144 598	-	-	-	42 949 989	84 094 587
Derivative financial instruments	-	-	-	6 633 074	4 120 682	10 753 756
TOTAL - NON-CURRENT LIABILITIES	468 777 473	-	(84 989 248)	6 633 074	47 070 671	437 491 970
Bonds	11 139 993	-	(64 524)	-	-	11 075 469
Loans from affiliated undertakings	42 949 989	-	-	-	(42 949 989)	-
Trade and other payables	9 153 885	-	(416 952)	-	698 855	9 435 788
Derivative financial instruments	-	-	-	-	3 439 907	3 439 907
Provisions for other liabilities and charges	-	-	-	-	500 000	500 000
TOTAL - CURRENT LIABILITIES	63 243 867	-	(481 476)	-	(38 311 227)	24 451 164
TOTAL - LIABILITIES	540 780 784	-	(85 470 724)	6 633 074	-	461 943 134
SHAREHOLDERS' EQUITY
Ordinary shares	44 869 851	-	-	-	-	44 869 851
Share premium	400 524 345	-	-	-	-	400 524 345
Legal reserve	4 106 864	-	-	-	(4 106 864)	-
Other reserves	814 353	(12 002 205)	-	-	4 106 864	(7 080 988)
Retained earnings	(200 890 583)	11 187 852	66 148 917	(6 633 074)	-	(130 186 888)
TOTAL - SHAREHOLDERS' EQUITY	249 424 830	(814 353)	66 148 917	(6 633 074)	-	308 126 320
TOTAL - LIABILITIES AND SHAREHOLDERS' EQUITY	790 205 614	(814 353)	(19 321 807)	-	-	770 069 454

(1) Includes the following captions from the Lux GAAP annual accounts : Loans to affiliated undertakings, Guarantees deposits and similar and Other loans

(2) This caption corresponds to the Transferable securities in the Lux GAAP annual accounts

Reconciliation of comprehensive income for the year 2009

Reconciliation of Lux GAAP to IFRS In EUR	Under Lux GAAP	Own equity instruments	Bonds	Bonds debt derivatives	Other transfers	Under IFRS
Revenue	1 611 968	-	-	-	(612 571)	999 397
Other external charges (including other taxes)	(11 993 434)	-	-	-	2 022 635	- (9 970 799)
Net gain/(loss) on disposal of assets including:	(35 762 905)	9 337 771	9 788 250	-	-	- (16 636 885)
tangible and financial assets	(16 636 884)				-	(16 636 885)
transferable securities	(19 126 021)	9 337 771	9 788 250	-	-	-
Employee benefits	(1 233 142)	-	-	-	-	- (1 233 142)
Amortisation, impairments and provisions including: value adjustments on tangible and intangible	(199 534 076)	(9 257 672)	(13 819 775)	-	21 079 777	- (201 531 746)
assets held as fixed assets value adjustments on financial assets and	(230 076)	-	-	-	-	(230 076)
transferable securities held as current assets	(199 529 000)	(9 257 672)	(13 819 775)	-	21 079 777	(201 526 670)
value adjustments on other current assets	225 000	-	-	-	-	225 000
Interest expenses	(34 402 091)	-	(15 586 363)	-	43 718 848	- (6 269 606)
Interest income				-	39 589 799	39 589 799
Income from participating interest	18 341 679	-	-			18 341 679
Foreign exchange result	-	-	-	-	1 689 283	1 689 283
Net gain/(loss) on financial instruments at fair value	-	-	-	(886 158)	(21 079 777)	(21 965 935)
Income from transferable securities and from loans
forming part of financial fixed assets	40 164 171	(365 203)	(465 356)	-	39 333 611	-
Other interest receivable and similar income	5 126 608	-			(5 126 608)	-
Operating result	(217 681 222)	(285 104)	(20 083 244)	(886 158)	41 947 775	(196 987 955)
Interest expenses on bonds					(39 945 703)	(39 945 703)
Other net financial results	-	-	-	-	(2 002 072)	(2 002 072)
Financial result	-	-	-	-	(41 947 775)	(41 947 775)
NET RESULT BEFORE INCOME TAXES	(217 681 222)	(285 105)	(20 083 244)	(886 158)	-	(238 935 730)
Income taxes	-	-	-	-	-	-
NET RESULT FOR THE YEAR	(217 681 222)	(285 105)	(20 083 244)	(886 158)	-	(238 935 730)

Reconciliation of shareholder's equity as at 31 December 2009

Reconciliation of Lux GAAP to IFRS

(in EUR)	Under	Own equity	Bonds	Bonds	Other	Under
	LUX GAAP	instruments	debts	derivatives	transfers	IFRS
ASSETS
Intangible assets	37 050	-	-	-	-	37 050
Tangible assets	291 104	-	-	-	-	291 104
Shares in affiliated undertakings	234 940 543	-	-	-	-	234 940 543
Financial assets at fair value through profit or loss	10 061 618	-	-	-	-	10 061 618
Loans to affiliated undertakings and other financial assets (1)	271 297 049	-	-	-	32 695 700	303 992 749
TOTAL - NON-CURRENT ASSETS	516 627 364	-	-	-	32 695 700	549 323 064
Loans to affiliated undertakings and other financial assets	34 564 252	-	-	-	(34 564 252)	-
Trade and other receivables	1 871 437	-	-	-	1 868 552	3 739 989
Current financial assets (2)	828 821	(58 336)	-	-	-	770 485
Cash and cash equivalents	4 464 324	-	-	-	-	4 464 324
TOTAL - CURRENT ASSETS	41 728 834	(58 336)	-	-	(32 695 700)	8 974 798
Prepayments and accrued income	9 934 790	-	(9 934 790)	-	-	-
TOTAL - PREPAYMENTS AND ACCRUED INCOME	9 934 790	-	(9 934 790)	-	-	-
TOTAL – ASSETS	568 290 988	(58 336)	(9 934 790)	-	-	558 297 862
LIABILITIES
Provisions for taxes	-	-	-	-	-	-
Other provisions	4 524 230	-	-	-	(4 524 230)	-
TOTAL - PROVISIONS FOR LIABILITIES AND CHARGES	4 524 330	-	-	-	(4 524 230)	-
Bonds	389 743 356	-	(53 388 256)	-	-	336 355 100
Loans from affiliated undertakings	53 823 596	-	-	-	4 526 634	58 350 230
Derivative financial instruments	-	-	-	7 519 221	2 020 777	9 539 998
TOTAL - NON-CURRENT LIABILITIES	443 566 952	-	(53 388 256)	7 519 221	6 547 411	404 245 328
Bonds	61 608 332	-	(2 612 183)	-	-	58 996 149
Loans from affiliated undertakings	4 529 242	-	-	-	(4 529 242)	-
Trade and other payables	22 318 626	-	-	-	2 608	22 321 234
Derivative financial instruments	-	-	-	-	2 439 553	2 439 553
Provisions for other liabilities and charges	-	-	-	-	63 900	63 900
TOTAL - CURRENT LIABILITIES	88 456 200	-	(2 612 183)	-	(2 023 181)	83 820 836
TOTAL - LIABILITIES	536 547 382	-	(56 000 439)	7 519 221	-	488 066 164
SHAREHOLDERS' EQUITY
Ordinary shares	44 869 851	-	-	-	-	44 869 851
Share premium	400 524 345	-	-	-	-	400 524 345
Legal reserve	4 106 864	-	-	-	(4 106 864)	-
Other reserves	58 337	(867 298)	-	-	4 106 864	3 297 903
Retained earnings	(417 815 791)	808 962	46 065 649	(7 519 221)	-	(378 460 401)
TOTAL - SHAREHOLDERS' EQUITY	31 743 606	(58 336)	46 065 649	(7 519 221)	-	70 231 698
TOTAL - LIABILITIES AND SHAREHOLDERS' EQUITY	568 290 988	(58 336)	(9 934 790)	-	-	558 297 862

(1) Includes the following captions from the Lux GAAP annual accounts : Loans to affiliated undertakings, Guarantees deposits and similar and Other loans

(2) This caption corresponds to the Transferable securities in the Lux GAAP annual accounts

Notes to the reconciliation of Luxembourg GAAP and IFRS

Own equity instruments;

Under Luxembourg GAAP own equity instruments were reported as transferable securities and results from sales were recognized in income statement. A restricted reserve corresponding to acquisition cost of these instruments was booked.

Under IFRS own equity instruments are deducted from equity (IAS 32) and no gain or loss is recognized in the income statement on the purchase, sale, issue or cancellation of those own equity instruments. All considerations paid or received for the purchase or sale of those own equity instruments are recognized directly in equity.

Bonds debt;

Under Luxembourg GAAP:

• o own bonds repurchased were reported as transferable securities and results from sales were recognized in the income statement. Interest related to these bonds was reported in income statement under "interest income".
• o issuing premiums and other issuing costs were considered as prepayments and were amortized as interest expenses over the period from issuance to maturity.
• o redemption premiums were amortized as interest expenses over the period from issuance to maturity.
• o bonds debt were accounted for at its nominal value and, if applicable, with recognition of an exchange loss on bonds issued in foreign currencies.

Under IFRS:

• o repurchased of own bonds are now considered as derecognition of financial instruments with impact in the income statement under " other net financial result". Purchased bonds re-issued are accounted for as an issue of new instruments.
• o bonds debt are initially accounted for at their fair value (including issuing premiums and other issuing costs) and subsequently valued at amortized cost using the effective interest rate method in the income statement under "interest expenses on bonds".
• Bonds derivatives;

Under Luxembourg GAAP:

o Derivatives instruments were not recognized except when fair value was negative. In case of negative fair value, fair value loss, and release of the provision for loss, were recognized in income statement under "other net financial results".

Under IFRS:

• o Derivatives instruments are initially recognized in the balance sheet at their fair value on a date a derivative contract is entered into and are subsequently re-measured at their fair value. Derivatives are presented at the balance sheet date under the caption "Derivative financial instruments" in current assets when fair value is positive or under the caption "Derivative financial instruments" in current or non-current liabilities when fair value is negative. Changes in the fair value are recognized immediately in the income statement under "other net financial results".
• Other transfers;

Under IFRS:

• o Amounts owed by affiliated undertakings due within one year have been reclassified under long term as they will be reimbursed together with the nominal upon disposal of underlying assets.
• o Derivative financial instruments have been reclassified out of the account "Other provision" and disclosed under non-current and current liabilities.
• o Interest expenses on the bonds have been classified as financial results.

2.1.3.3 Changes in accounting policies and disclosures

The following standards and amendments to existing standards have been published and are mandatory for the Company"s accounting periods beginning on or after 1 January 2011 or later periods, but the Company has not early adopted them:

• IFRS 9, "Financial instruments", issued in November 2009. This standard is the first step in the process to replace IAS 39, "Financial instruments: recognition and measurement". IFRS 9 introduces new requirements for classifying and measuring financial assets and is likely to affect the Company"s accounting for its financial assets. The standard is not applicable until 1 January 2013 but is available for early adoption. However, the standard has not yet been endorsed by the EU.
• Revised IAS 24, "Related party disclosures", issued in November 2009. It supersedes IAS 24, "Related party disclosures", issued in 2003. IAS 24 (revised) is mandatory for periods beginning on or after 1 January 2011. Earlier application, in whole or in part, is permitted. However, the standard has not yet been endorsed by the EU.
• "Classification of rights issues" (Amendment to IAS 32), issued in October 2009. The amendment applies to annual periods beginning on or after 1 February 2010, Earlier application is permitted. The amendment addresses the accounting for rights issues that are denominated in a currency other than the functional currency of the issuer. Provided certain conditions are met, such rights issues are now classified as equity regardless of the currency in which the exercise price is denominated. Previously, these issues had to be accounted for as derivative liabilities. The amendment applies retrospectively in accordance with IAS 8 "accounting policies, changes in accounting estimates and errors". The Company will apply the amendments from 1 January 2011.
• IFRIC 19, "Extinguishing financial liabilities with equity instruments", effective 1 July 2010. The interpretation clarifies the accounting by an entity when the terms of a financial liability are renegotiated and result in the entity issuing equity instruments to a creditor of the entity to extinguish all or part of the financial liability (debt for equity swap). It requires a gain or loss to be recognized in profit or loss, which is measured as the difference between the carrying amount of the financial liability and the fair value of the equity instruments issued. If the fair value of the equity instruments are reliably measured, the equity instruments should be measured to reflect the fair value of the financial liability extinguished. The Company will apply the interpretation from 1 January 2011, subject to endorsement by the EU. It is not expected to have any impact on the Company"s financial statements.
• "Prepayments of a minimum funding requirement" (Amendments to IFRIC 14). The amendments correct an unintended consequence of IFRIC 14, "IAS 19 – The limit on a defined benefit asset, minimum funding requirements and their interaction". Without the amendments, entities are not permitted to recognise as an asset some voluntary prepayments for minimum funding contributions. This was not intended when IFRIC 14 was issued, and the amendments correct this. The amendments are effective for annual periods beginning 1 January 2011. Earlier application is permitted. The amendments should be applied retrospectively to the earliest comparative period presented. The Company will apply these amendments for the financial period beginning on 1 January 2011.

Improvements to International Financial Reporting Standards 2010 were issued in May 2010. Amendments this year effect six standards and one IFRIC: IFRS 1, IFRS 7, IAS 1 and IFRIC 13. The amendments are generally applicable for annual periods beginning after 1 January 2011. Early application is permitted.

2.2 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker is the person or group that allocates resources to and assesses the performance of the operating segments of a Company. The Executive Committee together with the Investment Committee are the chief operating decision maker of the Company. This organization reflects the operational management of the Group. On a stand alone basis, the Management is in the opinion that split around different products, services, geographical areas or a combination of factors is not appropriate considering the activity of holding with no direct operations but only headquarter activities.

The Company derives its revenues mainly from invoicing portfolio management services covering partially its operating expenses. Those services are invoiced to the operations centers located essentially in Prague and Berlin. All other income relate to dividends and interests as there is no production at the Company level.

2.3 Foreign currency translation

(a) Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). The stand alone financial statements are presented in euro (EUR), which is the Company"s functional and presentation currency.

(b) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement.

Translation differences on non-monetary assets and liabilities held at fair value through profit or loss are recognized in the income statement as part of the fair value gain or loss.

2.4 Intangible assets

Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and bring to use the specific software. These costs are amortized using the straight-line method over their estimated useful lives (generally five years).

Costs associated with developing or maintaining computer software programs are recognized as an expense as incurred. Costs that are directly associated with the production of identifiable and unique software products controlled by the Company, and that will probably generate economic benefits exceeding costs beyond one year, are recognized as intangible assets. Direct costs include the costs of software development employees and an appropriate portion of relevant overheads.

Computer software development costs recognized as assets are amortized using the straight-line method over their estimated useful lives (not exceeding three years).

2.5 Fixtures and fittings

All fixtures and fittings are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisitions of the items. These costs are amortized using the straight-line method over their estimated useful lives (not exceeding ten years).

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the stand alone income statement.

2.6 Financial assets

2.6.1 Classification

The Company classifies its financial assets in the following categories: shares in affiliated undertakings, financial assets at fair value through profit or loss, and loans to affiliated undertakings and other financial assets. Management determines the classification of its financial assets at initial recognition.

a) Shares in affiliated undertakings

Shares in affiliated undertakings correspond to equity investments in subsidiaries. They are included in non-current assets unless the management intends to dispose of it within of the end of the reporting period.

b) Financial assets at fair value through profit or loss

Financial assets at fait value through profit or loss are financial assets which, upon initial recognition, are designated by the Company as at fair value through profit or loss. Assets in this category are classified as current assets if they are either held for trading or are expected to be realized within 12 months; otherwise, they are classified as non-current.

c) Loans to affiliated undertakings and other financial assets

Loans to affiliated undertakings and other financial assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the end of the reporting period. These are classified as non-current assets.

2.6.2 Recognition and measurement

• a) Shares in affiliated undertakings are initially recognised at cost. They are subsequently carried at cost less impairment. Management assesses at each balance sheet date whether there is objective evidence that share in affiliated undertaking is impaired. Impairment testing done by Management is described in note 4 (b).
• b) Financial assets carried at fair value through profit or loss are initially recognised at fair value, and transaction costs are expensed in the income statement. They are subsequently carried at fair value. Gains or losses arising from changes in their fair value are presented in the income statement with "Net gain / (loss) on financial assets at fair value through profit or loss".
• c) Loans to affiliated undertakings and other financial assets are initially recognised at fair value and subsequently carried at amortised cost using the effective interest method. Management assesses at each balance sheet date whether there is objective evidence that loan or other financial asset is impaired. Impairment testing done by Management is described in note 4(b).

Financial assets are derecognised when the rights to receive cash flows from the investments have expired or have been transferred and the Company has transferred substantially all risks and rewards of ownership.

Regular purchases and sales of financial assets are recognised on the trade date - the date on which the Company commits to purchase or sell the asset.

2.7 Trade and other receivables

Trade and other receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment. A provision for impairment of trade and other receivables is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset"s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The amount of the provision is recognized in the income statement.

2.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less.

2.9 Share capital

Ordinary shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options classified in equity are shown in equity as a deduction, net of tax, from the proceeds in other reserves.

The own shares held by the Company -Treasury shares - are measured at their acquisition cost and recognized as a deduction from equity. Gains and losses on disposal are taken directly to equity.

2.10 Borrowings

The term Borrowings covers the elements recorded under the captions Bonds and Financial debts within non-current liabilities and within current liabilities.

Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the income statement over the period of the borrowings using the effective interest method.

The fair value of the liability portion of a convertible bond is determined using a market interest rate for an equivalent non convertible bond. This amount is recorded as a liability on an amortized cost basis until extinguished on conversion at maturity of the bonds. If applicable, the remainder of the proceeds allocated to the conversion option is recognized in equity, net of income tax effect.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date.

2.11 Compound financial instruments

Compound financial instruments issued by the Company comprise convertible bonds that can be converted to share capital at the option of the holder, and the number of shares to be issued does not vary with changes in their fair value.

The liability component of a compound financial instrument is recognized initially at the fair value of a similar liability that does not have an equity conversion option. The equity component is recognized initially at the difference between the fair value of the compound financial instrument as a whole and the fair value of the liability component. Any directly attributable transaction costs are allocated to the liability and equity components in proportion to their initial carrying amounts.

Subsequent to initial recognition, the liability component of a compound financial instrument is measured at amortized cost using the effective interest method. The equity component of a compound financial instrument is not re-measured subsequent to initial recognition except on conversion or expiry.

2.12 Trade payables

Trade payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method.

2.13 Current and deferred income tax

The tax expense for the period comprises current and deferred tax. Tax is recognized in the income statement, except to the extent that it relates to items recognized directly in other comprehensive income or in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of the tax laws enacted at the balance sheet date. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the stand alone financial statements. However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction that at the time of the transaction affects neither accounting or taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.

Deferred income tax assets are recognized to the extent that it is probable that future taxable profit will be available against which the deferred income tax asset can be utilized.

Deferred income tax is provided on temporary differences arising on investments in subsidiaries and joint-ventures, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not be reversed in the foreseeable future.

2.14 Derivative financial instruments

Derivatives are initially recognized in the balance sheet at their fair value on a date a derivative contract is entered into and are subsequently re-measured at their fair value which is generally the market value. Derivatives are presented at the balance sheet date under the caption "Derivative financial instruments" in current assets when fair value is positive or under the caption "Derivative financial instruments" in current or non-current liabilities when fair value is negative. Changes in the fair value are recognized immediately in the income statement under "other net financial results".

Embedded derivatives that are not equity instruments, such as issued call options embedded in exchangeable bonds, are recognized separately in the balance sheet and changes in fair value are accounted for through the income statement.

2.15 Revenue recognition

The Company derives its revenues mainly from invoicing portfolio management services covering partially its operating expenses. Those services are invoiced to the operations centers located essentially in Prague and Berlin. All other income relate to dividends and interests as there is no production at the Company level.

The administrative expenses include repair and maintenance costs of buildings and properties, utilities costs, marketing and representation costs, travel and mobility expenses, operating taxes and other general overhead expenses.

2.16 Dividend distribution

Dividend distribution to the Company"s shareholders is recognized as a liability in the Company"s stand alone financial statements in the period in which the dividends are approved by the Company"s shareholders.

2.17 Provisions

Provisions for environmental restoration, site restoration and legal claims are recognized when: the Company, directly or on behalf of one of its subsidiary, has a present legal or constructive obligation as a result of past events; it is more likely than not that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated.

Where the Company, directly or on behalf of one of its subsidiary, as lessee, is contractually required to restore a leased-in property to an agreed condition, prior to release by a lessor, provision is made for such costs as they are identified.

2.18 Share option plans

Share options are granted to certain directors and senior employees. The options are granted at the market price on the date of the grant and are exercisable at that price.

The fair value of options granted is recognized as an employee expense with a corresponding increase in equity. The fair value is measured at grant date and spread over the period during which the employees become unconditionally entitled to the options. The fair value of the options granted is measured using a Black-Scholes model, taking into account the terms and conditions upon which the options were granted. The amount recognized as an expense is adjusted to reflect the actual number of share options that vest except where forfeiture is only due to share prices not achieving the threshold for vesting.

2.19 Subscription rights and PACEO ("Programme d'Augmentation de Capital par Exercice d'Options")

The Company grants subscription rights to third parties as part of its financing program. Any consideration received is added directly to equity as a capital increase recorded in share capital and share premium. Changes in the fair value of those equity instruments are not recognized in the stand alone financial statements.

3. Financial risk management

3.1 Financial risk factors

The Company"s activities expose it to a variety of financial risks: market risk (including foreign exchange risk and price risk), credit risk, liquidity risk and cash flow interest rate risk. The Company"s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company financial performance. The Company uses financial instruments to mitigate certain risk exposures.

Risk management, being formalized, is carried out by the Company"s Chief Financial Officer (CFO) and his team. As a result of the current restructuring, the policies are under review for approval by the Board of Directors. The Company"s CFO identifies, evaluates and mitigates financial risks. The Board of Directors will provide principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

(a) Market risk

(i) Foreign exchange risk

The Company operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the Czech Koruna (CZK) and the Polish Zloty (PLN). Foreign exchange risk, as defined by IFRS 7, arises mainly from recognized monetary assets and liabilities. Loans, operating income are mainly denominated in Euro (EUR). The Company does not use foreign currency derivatives contracts with non related parties.

The exchange rates to euro (EUR) used to establish these stand alone financial statements are as follows:

Currency	Currency	31 December 2008	31 December 2009	31 December 2010
Code		Closing	Closing	Closing
CZK	Czech Koruna	26.93	26.465	25.06
PLN	Polish Zloty	4.1724	4.1082	3.9603

The following table gives the impact on the total balance sheet in absolute terms in EUR million of the variation (increase/decrease) by 5 % against the Euro for each currency in which the Company has a significant exposure. The Company based the assumption of 5%, as the biggest exposure for the Company in CZK/EUR varied of 5.6% in 2010.

December 2010	Change of 5% against EUR
CZK/EUR	4.1
PLN/EUR	1.8
	Change of 5%
December 2009	against EUR
CZK/EUR	5.1

(ii) Price risk

The Company is exposed to equity securities risks from its investments in Endurance Fund and Novy Fund, which investments are classified in financial assets at fair value through profit or loss as detailed in note 8.

To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio and only enters these operations if they are linked to operational investments. No sensitivity analysis has been performed, as no significant impact expected by Management.

(b) Credit risk

The Company has significant concentrations of credit risk with loans granted to its affiliated undertakings. The loans are most of the time granted as mezzanine loans and come after the guarantees granted by affiliated undertakings to the financing bank (impairment tests on loans granted to affiliated undertakings are described in note 4(b) and in note 9). Cash transactions are limited to high credit-quality financial institutions. The Company has policies that limit the amount of credit exposure to any financial institution. Credit risk is managed by Company management.

At 31 December 2010 (in KEUR)	Fully performing	Past due but not impaired			Impaired	Total
		Less than 6 months	6 months and 1 year	More than 1 year
Loans to affiliated undertakings and other financial assets gross	215 159				189 140	404 299
Impairments at 31 December 2009					-138 503	-138 503
Impairments - allowance					-50 637	-50 637
Total loans to affiliated undertakings and other financial assets	215 159	0	0	0	0	215 159
Trade and other receivables gross	1 385	-	-	-	900	2 285
Impairments at 31 December 2009					-775	-775
Impairments - allowance					-125	-125
Total trade and other receivables	1 385	0	0	0	0	1 385
Current financial assets gross	158	-	-	-	2 476	2 634
Impairments at 31 December 2009					-2 599	-2 599
Impairments - write back					123	123
Total current financial assets	158	0	0	0	0	158
Cash and cash equivalents gross	4 814					4 814
Impairments at 31 December 2009						0
Total cash and cash equivalents	4 814	0	0	0	0	4 814

At 31 December 2009 (in KEUR)	Fully performing	Past due but not impaired			Impaired	Total
		Less than 6 months	6 months and 1 year	More than 1 year
Loans to affiliated undertakings and other financial assets gross	303 993	-	-	-	139 903	443 986
Impairments at 31 December 2008					-93 405	-93 405
Impairments - allowance					-46 498	-46 498
Total loans to affiliated undertakings and other financial assets	303 993	0	0	0	0	303 993
Trade and other receivables gross	3 740	-	-	-	775	4 515
Impairments at 31 December 2008					-	0
Impairments - allowance					-775	-775
Total trade and other receivables	3 740	0	0	0	0	3 740
Current financial assets gross	770	-	-	-	6 313	7 083
Impairments at 31 December 2008					-4 600	-4 600
Impairments - allowance					-1 713	-1 713
Total current financial assets	770	0	0	0	0	770
Cash and cash equivalents gross	4 464					4 464
Impairments at 31 December 2008						0
Total cash and cash equivalents	4 464	0	0	0	0	4 464

The table below shows in the rating and the balance in EUR Million for some of the major bank counterparties at the balance sheet date. The Company does not hold any collateral.

	Rating Agency			December
	Moody's	S&P's	Fitsch's	2010
Counterparty	Rating	rating	Rating
KBC Bank S.A.	Aa3	A	A	2.0
Bank Pekao	A2	A-	A-	1.9
Saxo Bank A.S	-	-	-	0.5
Banque Espirito Santo	A3	A-	-	0.2
Česka Spořitelna A.S.	A1	A	A	-
Banque du Luxembourg	AA3	A+	-	-
Other	-	-	-	0.2
Total in EUR Million				4.8

(c) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, and the ability to close out market positions. Due to the inherent nature of its assets, the Company is subject to a liquidity risk (see note 2.1 on going concern).

The liquidity risk is the risk that the Company might encounter difficulties raising liquid funds to meet commitments as they fall due. The management monitors the liquidity risk on the basis of expected cash flows.

The table below analyses the Company"s financial liabilities and net-settled derivative instruments into relevant maturity groupings based on the remaining period as from 31 December 2010 to the contractual maturity date.

As the amounts disclosed in the table are the contractual undiscounted cash flows, these amounts will not necessarily reconcile to the amounts disclosed on the balance sheet for borrowings, derivative instruments and other payables considered as financial instruments.

At 31 December 2010 (in KEUR)	Less than 1 month	Between 1 and 6 months	Between 6 months and 1 year	Between 1 and 5 years	More than 5 years	Total
Fixed rate loans and bonds	-	-8 978	-	-111 868	-483 704	-604 550
Interest rate derivatives	-271	-328	-549	-	-	-1 148
Trade and other payables	-8 031	-2 000	-1 361	-	-	-11 392
Total	-8 302	-11 306	-1 910	-111 868	-483 704	-617 090

At 31 December 2009 (In KEUR)	Less than 1 month	Between 1 and 6 months	Between 6 months and 1 year	Between 1 and 5 years	More than 5 years	Total
Fixed rate loans and bonds	-17 659	-8 335	-51 404	-373 828		-451 226
Floating rate bonds	-12 031	-238	-253	-87	-	-12 609
Interest rate derivatives	-290	-361	-664	-1 057	-	-2 372
Forex derivatives	-268	-827	-951	-	-	-2 046
Embedded derivatives on bonds	-	-	-10 055	-	-	-10 055
Trade and other payables	-5 878	-500	-15 943	-	-	-22 321
Total	-36 126	-10 261	-79 270	-374 972	0	-500 629

(d) Cash flow interest rate risk

The Company"s income cash in flows are substantially independent of changes in market interest rates. All loans granted to affiliated undertakings are granted with fixed interest rate. Contracts include the possibility to capitalize the accrued interests and loan repayment is only requested once the affiliated undertaking sells its own investments. Their capacity to pay capitalized interests above the initial principal relies on the fair value of the real estate assets they are invested in.

Loans from affiliated undertakings are granted on the basis of the same fixed interest rate. Interests on bonds are also fixed.

The Company has also entered into interest rate swaps detailed hereafter:

As at 31 December 2010:

Maturity date	Currency	Amount	Floating interest rate to receive	Fixed rate	Market Value (EUR)
30/09/2011	EUR	4.235.898	EURIBOR 3M	4,08	(96.767)
07/10/2011	EUR	2.968.524	EURIBOR 3M	3,91	(86.083)
07/10/2011	EUR	12.537.405	EURIBOR 3M	3,91	(363.568)
07/10/2011	EUR	15.000.000	EURIBOR 3M	3,91	(434.981)
07/10/2011	EUR	5.350.000	EURIBOR 3M	3,91	(155.143)
					(1.136.542)
As at 31 December 2009:

Maturity date	Currency	Amount	Floating interest rate to receive	Fixed rate	Market Value (EUR)
30/09/2011 07/10/2011 07/10/2011	EUR EUR EUR	4.235.898 2.968.524 12.537.405	EURIBOR 3M EURIBOR 3M EURIBOR 3M	4,08 3,91 3,91	(195.384) (151.125) (638.268)
07/10/2011 07/10/2011	EUR EUR	15.000.000 5.350.000	EURIBOR 3M EURIBOR 3M	3,91 3,91	(763.636) (272.364) (2.020.777)

The Company has also entered into foreign exchange contract that matured in December 2010 and detailed hereafter:

As at 31 December 2009:

Maturity date	Currency	Currency	Amount	Market Value
	purchased	sold	in PLN	(EUR)
31/12/2010	PLN	EUR	(10.022.169)	(2.439.552)

3.2 Fair value estimation

Effective 1 January 2009, the Company adopted the amendment to IFRS 7 for financial instruments that are measured in the balance sheet at fair value. This requires disclosure of fair value measurements by level of the following fair value measurement hierarchy:

• Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).

• Inputs other than quoted prices that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2).

• Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).

The fair value of financial instruments traded in active markets (such as publicly traded derivatives, trading securities and financial assets at fair value through profit or loss) is based on quoted market prices at the balance sheet date. The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. The Company uses a variety of methods and makes assumptions that are based on market conditions existing at each balance sheet date. Quoted market prices or dealer quotes for similar instruments are used for long-term debt. Other techniques, such as estimated discounted cash flows, are used to determine fair value for the remaining financial instruments. The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows.

The following table presents the Company"s financial assets and liabilities that are measured at fair value at 31 December 2010.

in KEUR	Level 1	Level 2	Level 3	Total balance
Assets
Financial assets at fair value through profit or loss
- Investment in Endurance Fund	-	-	10 325	10 325
- Trading securities	5	153	-	158
Total assets	5	153	10 325	10 483
Liabilities
Financial liabilities at fair value through profit or loss
- Embedded derivatives on bonds	-	-	-	-
- Trading derivatives	-	1 137	-	1 137
Total liabilities	-	1 137	-	1 137

The following table presents the Company"s financial assets and liabilities that are measured at fair value at 31 December 2009.

in KEUR	Level 1	Level 2	Level 3	Total balance
Assets
Financial assets at fair value through profit or loss
- Investment in Endurance Fund	-	-	10 062	10 062
- Trading securities	433	337	-	770
Total assets	433	337	10 062	10 832
Liabilities
Financial liabilities at fair value through profit or loss
- Embedded derivatives on bonds	-	703	6 817	7 520
- Trading derivatives	-	2 020	2 440	4 460

In KEUR	Investment in Endurance Fund
At 31 December 2009	10 062
Increase	-
Profit /(losses) recognised in profit or loss	263
At 31 December 2010	10 325

In KEUR	Embedded derivatives on Bonds	Trading derivatives
At 31 December 2009	-6 817	-2 440
Losses recognised in profit or loss	6 817	2 440
At 31 December 2010	0	0

3.3 Capital risk management

The Company monitors its capital risk by reference to the consolidated loan to value ratio which is the level of net debt accepted by the Group in order to finance its portfolio of assets. This measure is seen as more appropriate than the non consolidated balance sheet ratios where most investments are not at fair value. The objective of the Company is to maintain the consolidated loan to value ratio under 50%. The Company"s objectives when managing capital are to safeguard the going concern and growth of the activities while maximizing value creation for its shareholders. In order to maintain or adjust the capital structure, the Company may adjust dividends paid to shareholder (notably by offering the possibility to receive the dividends in shares instead of cash), issue new shares, sell totally or partially the control over some assets and activities or adjust the agenda of the developments.

As at 31 December, 2010, the consolidated loan to value ratio has reached the level of 67.8% compared to 84.4% in 2009. The sharp decrease of the LTV ratio is mainly the consequence of the approval of the Safeguard plan resulting in the recognition of the new debt at fair value and the value created on major development projects.

The consolidated LTV ratio before bonds also reduces from 58.1% to 53.8% due to the decrease of current liabilities.

The following table shows the detailed calculation of the consolidated loan to value ratio. Apart from the caption Revaluation gains on projects and properties, all the lines correspond to specific items indicated on the face of the consolidated balance sheet. The Revaluation gains or losses on projects and properties represent the difference between the book value and the fair value for all the projects and properties that are not considered as Investment properties. The fair value may be lower than the book value of developments since the impairment test is performed on the basis of the expected selling price once completed minus the remaining development and commercialization costs while the fair value corresponds to the sale price of the development as it is the date of valuation.

Group consolidated loan to value ratio

In EUR Thousand	December 2010	December 2009
Non current liabilities
Financial debts	526,991	484,634
Current liabilities
Financial debts	389,282	595,776
Current assets
Current financial assets	-302	-488
Liabilities held for sale	76,494	51,451
Cash and cash equivalents	-53,439	-57,040
Net debt	939,026	1,074,333
Investment property	888,036	1,072,304
Hotels and ow n-occupied buildings	222,563	215,393
Financial assets at fair value through profit or loss	30,049	32,353
Inventories	418,957	482,605
Assets held for sale	131,898	48,930
Revaluation gains /(losses) on projects and prop.	53,375	-3,095
Fair value of portfolio	1,744,878	1,848,490
Loan to value before bonds	53.8%	58.1%
Bonds	243,889	468,616
Accrued interests on bonds	-	16,860
Loan to value	67.8%	84.4%

The amount of revaluation on the projects located within the Hospitality Invest joint venture of the Group has been allocated in order to reflect the cash waterfall agreed between the joint venture partners in 2010.

The Company does not have external bank financing nevertheless, a breach of covenants on bank loans granted to affiliated undertakings could impact the Company if the Company stands guarantor for this loan.

Most of the administrative covenants are managed by local financial managers. Reported breaches are managed at Group level. Financial covenants are directly managed at Group level. End of 2010, some loans encountered administrative and/or financial covenant breaches. Those loans, as a result, have been reclassified in current liabilities. Most covenants relate to administrative documents to be provided (audited accounts, management reports) and financial ratios to be respected on the asset level (loan to value, loan to construction and interest coverage ratio).

In some circumstances, when cross default covenants are included in bank loan agreements, breaches occurring at the level of subsidiaries could have the consequence that other bank loans granted to other entities of the Group become repayable on demand. Such cross defaults can occur also in the opposite way, meaning that breaches occurring at the level of the Company could have the consequence that bank loans granted to subsidiaries become repayable on demand.

3.4 Financial instruments

	Loans and Receivables	Assets at fair value through profit or loss	Total
31 December 2010 (in KEUR)
Assets per balance sheet
Financial assets at fair value through profit or loss	-	10 325	10 325
Loans to affiliated undertakings and other financial assets	215 159	-	215 159
Current financial assets		158	158
Trade and other receivables	1 385	-	1 385
Cash and cash equivalents	4 814	-	4 814
Total	221 358	10 483	231 841

	Liabilities at fair value through profit or loss	Other financial liabilities at amortised cost	Total
31 December 2010 (in KEUR)
Liabilities per balance sheet
Loans from affiliated undertakings	-	34 562	34 562
Bonds	-	162 480	162 480
Derivatives financial instruments	1 137	-	1 137
Trade and other payables	-	11 392	11 392
Total	1 137	208 434	209 571

	Loans and Receivables	Assets at fair value through profit or loss	Total
31 December 2009 (in KEUR)
Assets per balance sheet
Financial assets at fair value through profit or loss	-	10 062	10 062
Loans to affiliated undertakings and other financial assets	303 993	-	303 993
Current financial assets	-	770	770
Trade and other receivables	3 740	-	3 740
Cash and cash equivalents	4 464	-	4 464
Total	312 197	10 832	323 029

	Liabilities at fair value through profit or loss	Other financial liabilities at amortised cost	Total
31 December 2009 (in KEUR)
Liabilities per balance sheet
Loans from affiliated undertakings	-	58 350	58 350
Bonds	-	395 351	395 351
Derivatives financial instruments	11 980	-	11 980
Trade and other payables	-	22 321	22 321
Total	11 980	476 022	488 002

4. Critical accounting estimates and judgments

Estimates and judgments are continually evaluated and are based on historical experience as adjusted for current market conditions and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that present a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are disclosed below.

• (a) Assessment of the going concern (see note 2.1.1)
• (b) Impairments on shares in affiliated undertakings and on loans granted to affiliated undertakings

The Company assesses at the end of each reporting period whether there is objective evidence that shares in and loans granted to affiliated undertakings are impaired. Such types of assets are impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset and that event has an impact on the estimated future cash flows of the asset that can be reliably estimated.

The criteria used by the Company to determine that there is objective evidence of an impairment loss is the net asset value of each affiliated undertaking which is based on the fair value of the underlying property(ies).

These valuations are performed annually by an independent expert, DTZ Debenham Tie Leung.

The best evidence of fair value of investments properties is current prices in an active market for similar assets. In the absence of such information, the Company determines the amount within a range of reasonable fair value estimates. In making its judgment, the Company considers information from a variety of sources including:

• i) current prices in an active market for properties of different nature, condition or location (or subject to different lease or other contracts), adjusted to reflect those differences;
• ii) recent prices of similar properties in less active markets, with adjustments to reflect any changes in economic conditions since the date of the transactions that occurred at those prices; and
• iii) discounted cash flow projections based on reliable estimates of future cash flows, derived from the terms of any existing lease and other contracts and (where possible) from external evidence such as current market rents for similar properties in the same location and condition, and using discount rates that reflect current market assessments of the uncertainty in the amount and timing of the cash flows.

If information on current or recent prices is not available, the fair values of investment properties are determined using discounted cash flow valuation techniques. A cash flow period of 10 years is taken into consideration and is based on an estimate of the future potential net income generated by use of the properties. The Company uses assumptions that are mainly based on market conditions existing at each balance sheet date.

The main assumptions for discounted cash flow projections are the following:

	2010		2009
Discount Rate	6,5%	11,8%	7%	11%
Yield Range	5,8%	13,0%	6,75%	12%
Exit Cap Rate	5,3%	9,0%	6%	9%

Details of the main assumptions by type of properties used in 2010 :

	Equivalent Yield		Cap Rate		Discount Rate
	Min	Max	Min	Max	Min	Max
Hospitality	8,0%	12,5%	7,3%	9,0%	9,0%	11,8%
Rental CE	6,7%	13,0%	NA	NA	NA	NA
Luxembourg	NA	NA	6,5%	6,5%	7,5%	7,5%
German assets (excluding GSG)	NA	NA	5,3%	7,3%	6,5%	8,3%
GSG assets	NA	NA	6,5%	8,3%	7,0%	9,6%
Developments CE	7,3%	8,8%	NA	NA	NA	NA

The principal assumptions underlying management"s estimation of fair value are those related to: the potential use of the asset, the receipt of contractual rentals; expected future market rentals; void periods; maintenance requirements; and appropriate discount rates. The fair value is based on the potential use of the properties as determined by the Group. Fair value is the highest value, determined from market evidence, by considering any other use that is financially feasible, justifiable and reasonably probable. The "highest and best-use" value results in a property"s value being determined on the basis of redevelopment of the site. These valuations are regularly compared to actual market yield data, actual transactions by the Group and those reported by the market.

The expected future market rentals are determined on the basis of current market rentals for similar properties in the same location and condition.

(c) Income taxes

The Company is subject to income taxes in Luxembourg and France. Significant estimates are required in determining the provision for income taxes. There are some transactions and calculations for which the ultimate tax determination is uncertain. The Company recognizes liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.

(d) Estimate of fair value of financial instruments

Some financial instruments are recorded at fair value.

Valuations are performed regularly on the basis of the management best estimates of the credit risk of the Company or of the specific entity concerned in the light of existing, available and observable market data by the Company"s banks for the derivatives (IRS, options and forwards).

The fair value of financial instruments reflects, among other things, current market conditions (interest rates, volatility and share price). Changes in fair values are recorded in the income statement.

The Company investments in the Endurance sub-funds are fair valued on the basis of the net asset value as provided by the fund Manager as at 30 September 2010 with a liquidity discount of 20% (20% in 2009).

(e) Fair value of bonds at recognition

See note 11.1

5. Intangible assets

Intangible assets consist of softwares. Movements are as follows:

	Gross amount	Amortisation and impairments	Net amount
In EUR
Balance at 1 January 2009	-	-	-
Additions / (Amortisation)	37 050	-	37 050
Balance at 31 December 2009	37 050	-	37 050
Additions / (Amortisation)	636 548	(134 720)	501 828
Balance at 31 December 2010	673 598	(134 720)	538 878

In 2010, the Company has acquired new softwares for accounting and consolidation purposes.

6. Fixtures and fittings

Fixtures and fittings consist of transport equipment, furnitures, computing equipment and other tangible assets. Movements are as follows:

		Amortisation
	Gross	and	Net
	amount	impairments	amount
In EUR
Balance at 1 January 2009	621 535	(59 886)	561 649
Additions / (Amortisation)	-	(230 076)	(230 076)
(Assets sales) / Reversal of impairments	(106 153)	65 684	(40 469)
Balance at 31 December 2009	515 382	(224 278)	291 104
Additions / (Amortisation)	172 556	(17 832)	154 724
Balance at 31 December 2010	687 938	(242 110)	445 828

7. Shares in affiliated undertakings

The movements are follows:

	Acquisition		Net
	cost	Impairments	book value
In EUR
Balance at 1 January 2009	454 974 087	(104 709 975)	350 264 112
Additions / (Impairments)	63 968 232	(219 052 091)	(155 083 859)
(Disposals) / Reversal of impairments	(23 376 993)	63 137 283	39 760 290
Balance at 31 December 2009	495 565 326	(260 624 783)	234 940 543
Additions / (Impairments)	86 099 324	(102 561 983)	(16 462 659)
(Disposals) / Reversal of impairments	(28 496 266)	41 469 008	12 972 742
Balance at 31 December 2010	553 168 384	(321 717 758)	231 450 626

Impairment tests on shares in affiliated undertakings are based on the estimate of the fair value of the special purpose entity and its capacity to repay the loans as described in note 4 (b).

In accordance with article 67 (3) (a) of the law dated 19 December 2002, the Company is not presenting the capital and reserves and the profit and loss of its affiliated undertakings are included in the consolidated financial statements of the Company available on the website www.orcogroup.com.

Shares in affiliated undertakings are detailed as follows (in "000 EUR) :

Company	Country	Local currency	% held	Acquisition cost 31/12/2010	Acquisition cost 31/12/2009	Purchased / Acquired in 2010	Sold / Liquidated in 2010	Cumulated impairments 31/12/2009	Cumulated impairments 31/12/2010	Impairments in 2010	Net book value 31/12/2010	Net book value 31/12/2009
Americka - Orco ,a.s	Czech Republic	CZK	100,00%	780,29	780,29	-	-	-	-	-	780,29	780,29
Americka 1,a.s.	Czech Republic	CZK	-	0,00	1 567,54	-	(1 567,54)	(876,46)	-	876,46	-	691,08
Americka 33,a.s.	Czech Republic	CZK	-	0,00	344,84	-	(344,84)	-	-	-	-	344,84
Americka Park, a.s.	Czech Republic	CZK	100,00%	2 619,62	1 877,57	742,05	-	(1 329,07)	(1 380,29)	(51,22)	1 239,32	548,50
Anglicka 26,s.r.o.	Czech Republic	CZK	-	0,00	5 005,25	-	(5 005,25)	(3 272,93)	-	3 272,93	-	1 732,32
Ariah Kft	Hungary	HUF	100,00%	9 895,42	3 189,74	6 705,68	-	(3 189,74)	(5 806,27)	(2 616,52)	4 089,16	-
BCC - Brno City Center, a.s.	Czech Republic	CZK	100,00%	9 755,80	9 755,80	-	-	(1 619,35)	-	1 619,35	9 755,80	8 136,46
Belgicka-Na Kozacce,s.r.o.	Czech Republic	CZK	100,00%	1 206,49	1 206,49	-	-	(276,36)	-	276,36	1 206,49	930,14
Beta Development	Czech Republic	CZK	100,00%	25,81	25,81	-	-	(25,81)	(25,81)	-	-	-
Bubenská 1, a.s.	Czech Republic	CZK	100,00%	987,21	987,21	-	-	-	-	-	987,21	987,21
Bubny development, s.r.o.	Czech Republic	CZK	100,00%	21 261,47	21 261,47	-	-	(4 495,82)	-	4 495,82	21 261,47	16 765,65
Capellen Invest s.a.	Luxembourg	EUR	100,00%	2 182,64	2 182,64	-	-	(2 182,64)	(2 182,64)	-	-	-
CEREM, s.a.	Luxembourg	EUR	100,00%	31,00	31,00	-	-	(31,00)	(31,00)	-	-	-
CWM 35 Kft	Hungary	HUF	100,00%	21 116,10	21 116,10	-	-	(12 187,60)	(12 591,92)	(404,32)	8 524,18	8 928,50
Development Doupovská, s.r.o.	Czech Republic	CZK	100,00%	2 391,82	2 391,82	-	-	(1 663,57)	(1 848,68)	(185,11)	543,14	728,25
Development Vision Sp Z.o.o.	Poland	PLN	-	0,00	13,08	-	(13,08)	(13,08)	-	13,08	-	-
Diana Property, Sp. z o.o.	Poland	PLN	100,00%	776,65	776,65	-	-	-	-	-	776,65	776,65
Endurance Hospitality Asset	Luxembourg	EUR	100,00%	11,01	11,01	-	-	(11,01)	(11,01)	-	-	-
Endurance Hospitality Finance Sàrl	Luxembourg	EUR	100,00%	11,01	11,01	-	-	-	(11,01)	(11,01)	-	11,01
Endurance Real Estate Management Co. s.a.	Luxembourg	EUR	100,00%	125,00	125,00	-	-	-	-	-	125,00	125,00
Energia Jeden, Sp. z o.o.	Poland	PLN	-	0,00	13,08	-	(13,08)	(13,08)	-	13,08	-	-
ENOR-Hungary Kft.	Hungary	HUF	-	0,00	1,93	-	(1,93)	(1,93)	-	1,93	-	-
Hagibor Office Building, a.s.	Czech Republic	CZK	100,00%	22 287,27	22 287,27	-	-	(19 932,93)	(8 930,82)	11 002,11	13 356,45	2 354,34
IPB Real Reality,a.s.	Czech Republic	CZK	-	0,00	10,59	-	(10,59)	-	-	-	-	10,59
IPB Real,a.s.	Czech Republic	CZK	100,00%	3 053,22	0,00	3 053,22	-	-	-	-	3 053,22	-
IPB Real,s.r.o.	Czech Republic	CZK	100,00%	500,48	500,48	-	-	(500,48)	(500,48)	-	-	-
Jeremiášova Invest s.r.o.	Czech Republic	CZK	100,00%	2 321,50	2 321,50	-	-	(1 242,99)	(1 374,59)	(131,59)	946,92	1 078,51
Jihovychodni Mesto,a.s.	Czech Republic	CZK	74,99%	25 637,86	25 637,86	-	-	(20 364,56)	(19 731,86)	632,70	5 906,00	5 273,30
Karousa Enterprises Company Ltd	Cyprus	USD	70,00%	5 058,51	0,00	5 058,51	-	-	(1 436,57)	(1 436,57)	3 621,94	-
Kosic s.a.r.l.	Luxembourg	EUR	50,00%	8 258,50	9 758,50	-	(1 500,00)	(3 729,39)	(3 170,13)	559,27	5 088,37	6 029,11
M & O Sp z.o.o.	Poland	PLN	100,00%	307,19	307,19	-	-	(307,19)	(307,19)	-	-	-
Machova-Orco ,a.s.	Czech Republic	CZK	100,00%	2 847,27	2 847,27	-	-	(2 847,27)	(2 462,24)	385,03	385,03	-
Meder 36 Kft	Hungary	HUF	100,00%	1 858,88	1 858,88	-	-	(1 858,88)	(1 858,88)	-	-	-
Megaleiar A.S.	Czech Republic	CZK	100,00%	2 008,90	1 256,64	752,26	-	(689,00)	(836,32)	(147,31)	1 172,59	567,64
MMR Management, s.r.o.	Czech Republic	CZK	100,00%	6,30	5,67	0,63	-	-	-	-	6,30	5,67
Na Poříčí, a.s.	Czech Republic	CZK	100,00%	12 441,94	12 441,94	-	-	(8 136,45)	(5 961,05)	2 175,41	6 480,89	4 305,49
Nad Petruskou,s.r.o.	Czech Republic	CZK	-	0,00	364,83	-	(364,83)	-	-	-	-	364,83
Nove Medlanky,a.s.	Czech Republic	CZK	-	0,00	6 005,61	-	(6 005,61)	(5 222,51)	-	5 222,51	-	783,10
Nupaky a.s.	Czech Republic	CZK	100,00%	6 933,99	2 356,08	4 577,91	-	(2 316,24)	(2 566,23)	(249,99)	4 367,76	39,84
Oak Mill,a.s.	Czech Republic	CZK	99,99%	1 385,26	1 385,26	-	-	(426,36)	(159,71)	266,65	1 225,55	958,90
Office Center Hradčanská, a.s. (formerly: Certuv ostrov)	Czech Republic	CZK	100,00%	4 668,19	4 668,19	-	-	(4 668,19)	(4 668,19)	-	-	-
Office II Invest, s.a.	Luxembourg	EUR	100,00%	31,00	15,60	15,40	-	(15,60)	-	15,60	31,00	-
Onset a.s.	Czech Republic	CZK	100,00%	5 462,22	2 671,73	2 790,48	-	(2 671,73)	(4 137,68)	(1 465,95)	1 324,54	-
OPG France, s.a.s.	France	EUR	100,00%	37,00	0,00	37,00	-	-	-	-	37,00	-

Company	Country	Local	%	Acquisition	Acquisition	Purchased /	Sold /	Cumulated	Cumulated		Net book	Net book
		currency	held	cost	cost	Acquired	Liquidated	impairments	impairments	Impairments	value	value
				31/12/2010	31/12/2009	in 2010	in 2010	31/12/2009	31/12/2010	in 2010	31/12/2010	31/12/2009
Orco Estate,s.r.o.	Czech Republic	CZK	100,00%	885,26	885,26	-	-	-	-	-	885,26	885,26
Orco Financial Services, s.r.o.	Czech Republic	CZK	100,00%	364,50	89,76	274,74	-	(89,76)	(364,50)	(274,74)	-	-
Orco Investment,a.s.	Czech Republic	CZK	-	0,00	1 651,09	-	(1 651,09)	(1 068,80)	-	1 068,80	-	582.28
Orco Praga, s.r.o.	Czech Republic	CZK	74,99%	933,18	933,18	-	-	(933,18)	(933,18)	-	-	-
Orco Prague,a.s.	Czech Republic	CZK	100,00%	5 097,08	5 097,08	-	-	(2 849,87)	(5 097,08)	(2 247,21)	-	2 247,21
Orco Adriatic d.o.o.	Croatia	HRK	100,00%	2,73	2,73	-	-	(2,73)	(2,73)	-	-	-
Orco Blumentálska, a.s.	Slovakia	EUR	100,00%	2 979,86	2 979,86	-	-	(2 979,86)	(2 979,86)	-	-	-
Orco Bucharest	Romania	ROL	96,00%	3,26	3,26	-	-	(3,26)	(3,26)	-	-	-
Orco Budapest Zrt.	Hungary	HUF	99,99%	4 650,76	3 050,38	1 600,37	-	(3 050,38)	(4 650,76)	(1 600,37)	-	-
Orco Commercial Sp. z o.o.	Poland	PLN	100,00%	199,77	199,77	-	-	(199,77)	(199,77)	-	-	-
Orco Construction Sp. z o.o.	Poland	PLN	75,00%	1 549,49	1 549,49	-	-	(1 549,49)	(1 549,49)	-	-	-
Orco Development Kft	Hungary	HUF	100,00%	70,18	70,18	-	-	(70,18)	(70,18)	-	-	-
Orco Development Sp. z o.o.	Poland	PLN	75,00%	337,74	337,74	-	-	(337,74)	(337,74)	-	-	-
ORCO Development, s.r.o.	Slovakia	EUR	100,00%	1 000,79	1 000,79	-	-	-	(617,95)	(617,95)	382,84	1 000,79
Orco Enterprise Sp. z.o.o.	Poland	PLN	100,00%	737,28	737,28	-	-	(737,28)	(737,28)	-	-	-
Orco Estate Sp.z.o.o.	Poland	PLN	100,00%	700,11	700,11	-	-	(700,11)	(700,11)	-	-	-
ORCO Estates, s.r.o.	Slovakia	EUR	100,00%	4,97	4,97	-	-	(4,97)	(4,97)	-	-	-
Orco Germany s.a.	Luxembourg	EUR	56,79%	101 908,91	97 515,11	4 393,79	-	(41 691,44)	(46 299,62)	(4 608,18)	55 609,28	55 823,67
Orco Hungary Kft	Hungary	HUF	100,00%	583,45	583,45	-	-	(400,65)	(492,32)	(91,66)	91,14	182,80
Orco Logistic Sp. Z.o.o.	Poland	PLN	100,00%	13,08	13,08	-	-	(13,08)	(13,08)	-	-	-
Orco Marine, d.o.o.	Croatia	HRK	100,00%	27,50	27,50	-	-	(27,50)	(27,50)	-	-	-
Orco Poland Sp. z o.o.	Poland	PLN	100,00%	2 816,25	399,03	2 417,22	-	(399,03)	(2 816,25)	(2 417,22)	-	-
Orco Project Kft.	Hungary	HUF	-	0,00	1,93	-	(1,93)	(1,93)	-	1,93	-	-
Orco Project Sp. z o.o.	Poland	PLN	100,00%	700,99	700,99	-	-	-	(700,99)	(700,99)	-	700,99
Orco Projekt, d.o.o.	Croatia	HRK	100,00%	2,75	2,75	-	-	(2,75)	(2,75)	-	-	-
Orco Property Sp. z o.o.	Poland	PLN	75,00%	3 597,16	3 597,16	-	-	-	-	-	3 597,16	3 597,16
ORCO Property, d.o.o.	Croatia	HRK	100,00%	2,80	2,80	-	-	(2,80)	(2,80)	-	-	-
Orco Razvoj, d.o.o.	Croatia	HRK	100,00%	27,50	27,50	-	-	(27,50)	(27,50)	-	-	-
Orco Residence, s.r.o.	Slovakia	EUR	100,00%	5,18	5,18	-	-	(5,18)	(5,18)	-	-	-
Orco Residential Sp. z o.o.	Poland	PLN	100,00%	9 701,11	1 321,60	8 379,50	-	(671,64)	(1 654,42)	(982,79)	8 046,68	649,97
Orco Russian Retail, sa	Luxembourg	EUR	100,00%	31,00	31,00	-	-	(31,00)	(31,00)	-	-	-
ORCO Slovakia, s.r.o.	Slovakia	EUR	100,00%	4,97	4,97	-	-	(4,97)	(4,97)	-	-	-
Orco Vagyonkezelő, Kft.	Hungary	HUF	100,00%	1 701,94	1 001,90	700,04	-	(880,65)	(1 070,54)	(189,89)	631,40	121,25
Orco-Molcom B.V.	Netherlands	EUR	69,00%	51 408,61	51 408,61	-	-	-	(46 797,90)	(46 797,90)	4 610,71	51 408,61
Origo Investment Kft (formerly: Orco Investment Kft)	Hungary	HUF	14,95%	1 213,97	1 213,97	-	-	(463,97)	(463,97)	-	750,00	750,00
Pachtuv Palac s.r.o.	Czech Republic	CZK	100,00%	7 424,41	7 424,41	-	-	(7 424,41)	(3 917,76)	3 506,66	3 506,66	-
Prvni Kvintum Praha a.s.	Czech Republic	CZK	90,00%	2 760,22	2 760,22	-	-	(2 277,13)	(0,00)	2 277,13	2 760,22	483,10
Residence Masaryk, a.s.	Czech Republic	CZK	-	0,00	2 708,38	-	(2 708,38)	(2 708,38)	-	2 708,38	-	-
Sarakina Enterprises Company Ltd	Cyprus	USD	69,00%	26 692,76	0,00	26 692,76	-	-	-	-	26 692,76	-
Seattle,s.r.o.	Czech Republic	CZK	100,00%	8 928,71	1 261,42	7 667,29	-	(676,94)	(6 445,27)	(5 768,34)	2 483,43	584,48
Suncani HVAR, d.d.	Croatia	HRK	55,55%	82 190,51	82 190,51	-	-	(54 308,90)	(63 344,15)	(9 035,25)	18 846,36	27 881,61
Theonia Entreprises Company Ltd	Cyprus	USD	100,00%	13 930,64	13 930,64	-	-	(5 874,86)	(13 930,64)	(8 055,78)	-	8 055,78
T-O Green Europe, a.s.	Czech Republic	CZK	100,00%	21,43	21,43	-	-	(3,84)	-	3,84	21,43	17,59
TQE Asset, a.s.	Czech Republic	CZK	99,20%	17 541,38	17 541,38	-	-	(16 202,24)	(15 861,31)	340,93	1 680,07	1 339,14

Company	Country	Local currency	% held	Acquisition cost 31/12/2010	Acquisition cost 31/12/2009	Purchased / Acquired in 2010	Sold / Liquidated in 2010	Cumulated impairments 31/12/2009	Cumulated impairments 31/12/2010	Impairments in 2010	Net book value 31/12/2010	Net book value 31/12/2009
Valley Investment, Sàrl (formerly: Endurance H.C. Eta)	Luxembourg	EUR	100,00%	0,73	0,00	0,73	-	-	(0,73)	(0,73)	-	-
Vinohrady s.a.r.l.	France	EUR	100,00%	7,62	7,62	-	-	-	-	-	7,62	7,62
Viterra Cescka spol. S.r.o.	Czech Republic	CZK	100,00%	6 597,29	4 636,62	1 960,67	-	(4 636,62)	(6 597,29)	(1 960,67)	-	-
Viterra Development Polska sp.z.o.o.	Poland	PLN	99,99%	1,25	9 309,38	-	(9 308,12)	-	-	-	1,25	9 309,38
Vysočanská brána, a.s. (formerly: 1.Sportovni,a.s.)	Czech Republic	CZK	100,00%	1 130,37	1 130,37	-	-	(1 130,37)	(1 130,37)	-	-	-
Yuli Kft	Hungary	HUF	100,00%	9 128,77	5 828,73	3 300,04	-	-	(6 226,66)	(6 226,66)	2 902,10	5 828,73
Zahrebska 35,s.r.o.	Czech Republic	CZK	100,00%	5 265,32	286,30	4 979,02	-	(60,38)	(3 613,36)	(3 552,98)	1 651,97	225,93
				553 168,38	495 565,33	86 099,32	(28 496,27)	(260 624,78)	(321 717,76)	(61 092,98)	231 450,63	234 940,54

8. Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss consist of investments in Endurance Real Estate Fund for Central Europe, a mutual investment fund launched by the Company in 2005.

The movements are follows:

	Acquisition cost	Fair value adjustements	Net book value
In EUR
Balance at 1 January 2009	31 106 754	(2 589 400)	28 517 354
Additions / Increase	911 424	(19 367 160)	(18 455 736)
Disposals / Decrease	-	-	-
Balance at 31 December 2009	32 018 178	(21 956 560)	10 061 618
Additions / Increase	35	(187 246)	(187 211)
Disposals / Decrease	-	450 364	450 364
Balance at 31 December 2010	32 018 213	(21 693 442)	10 324 771

As at 31 December 2010, the fair value of the investments in the Endurance Real Estate Fund for Central Europe amounts to EUR 10.3 million (EUR 10.1 million as at 31 December 2009).The Endurance fund managed by the Company (see note 24) is divided in three specialized sub-funds. Two are investing in office investment properties and one is investing in residential developments and properties. These investments are accounted for at their fair value with change in fair value going through the income statement. The change in fair value recorded in 2010, based on the net asset value as provided by the fund Manager in its report as at 30 September 2010, with a liquidity discount of 20% (20% in 2009), amounts to a profit of EUR 0.3 million (EUR 19.4 million loss in 2009).

Investments in the Endurance Real Estate Fund for Central Europe are detailed as follows:

	Investments in the Endurance"s Office Sub-Fund
	Total	Estimated	Units	%	Acquisition	Fair value	Net	Actual
	issued units	NAV	Held	Held	cost	adjustements	book value	Commitment
In EUR
Balance at 1 January 2009	13 490 870,970	10,41	2 122 603,050	15,73%	22 698 593	(602 295)	22 096 298	4 301 407
Additions / Increase	439 516,770		129 216,33		886 424	(14 678 012)	(13 791 588)	(886 424)
Disposals / Decrease							0
Balance at 31 December 2009	13 930 387,740	3,69	2 251 819,380	16,16%	23 585 017	(15 280 307)	8 304 710	3 414 983
Additions / Increase							0
Disposals / Decrease						450 364	450 364
Balance at 31 December 2010	13 930 387,740	3,89	2 251 819,380	16,16%	23 585 017	(14 829 943)	8 755 074	3 414 983

Investments in the Endurance"s Residential Sub-Fund

	Total	Estimated	Units	%	Acquisition	Fair value	Net	Actual
In EUR	issued units	NAV	Held	Held	cost	adjustements	book value	Commitment
Balance at 1 January 2009	8 449 292,443	7,17	895 544,771	10,60%	8 408 161	(1 987 105)	6 421 056	13 491 839
Increase / Depreciation	2 833 809,730	-	4 510,811	-	25 000	(4 689 147)	(4 664 147)	(25 000)
Decrease / Reversal	-	-		-	-	-	-	-
Balance at 31 December 2009	11 283 102,173	1,95	900 055,582	7,98%	8 433 161	(6 676 252)	1 756 909	13 466 839
Increase / Depreciation	4 260 416,186	-	-	-	35	(187 247)	(187 212)	(35)
Decrease / Reversal	-	-	-	-	-	-	-	-
Balance at 31 December 2010	15 543 518,359	1,74	900 055,582	5,79%	8 433 196	(6 863 499)	1 569 697	13 466 804

9. Loans to affiliated undertakings and other financial assets

9.1 Loans to affiliated undertakings

The movements are follows:

	Gross		Net
	amount	Impairments	book value
In EUR
Balance at 1 January 2009	470 388 019	(93 404 888)	376 983 131
Additions / (Impairments)	78 872 816	(77 942 743)	930 073
(Disposals) / Reversal of impairments	(106 973 264)	32 844 724	(74 128 540)
Balance at 31 December 2009	442 287 571	(138 502 907)	303 784 664
Additions / (Impairments)	77 291 478	(73 973 795)	3 317 683
(Disposals) / Reversal of impairments	(116 466 440)	23 336 322	(93 130 118)
Balance at 31 December 2010	403 112 609	(189 140 380)	213 972 229

The Company has global agreement with all its subsidiaries for loans bearing 8% interest and a maturity on 31 December 2020.

Impairments policy is detailed in note 4(b).

Loans to affiliated undertakings are detailed as follows (in EUR):

			As at December 31, 2010			2010 As at December 31, 2009						2009
Affiliated	Loan	Accrued	Total	Impairments	Net book	Interest	Loan	Accrued	Total	Impairments	Net book	Interest	Original
undertakings	nominal	Interest	gross value		value	income	nominal	Interest	gross value		value	income	Currency
Ambiance Beaute Sarl	6 750	-	6 750	(6 750)	-	-	3 950	-	3 950	(3 950)	-	-	EUR
Ambona kredit s.r.o.	-	-	-	-	-	-	-	-	-	-	-	1 442	CZK
Americká - Orco, a.s	510 953	41 196	552 148	-	552 148	41 196	184 808	3 777	188 585	-	188 585	3 777	CZK
Americka 1,a.s.	-	-	-	-	-	11 357	378 122	145 064	523 186	-	523 186	145 064	CZK
Americka 33,a.s.	-	-	-	-	-	3 123	60 053	1 854	61 907	-	61 907	417 788	CZK
Americka Park, a.s.	552 018	65 152	617 170	-	617 170	53 754	915 803	81 305	997 107	-	997 107	81 305	CZK
Anglicka 26,s.r.o.	-	-	-	-	-	-	-	11 064	11 064	-	11 064	-	CZK
Ariah Kft	-	-	-	-	-	415 089	5 396 150	428 069	5 824 219	(5 824 219)	-	428 069	EUR
BCC - Brno City Center, a.s.	4 280 820	391 821	4 672 642	-	4 672 642	391 821	4 376 350	446 970	4 823 321	-	4 823 321	446 970	CZK
Belgicka-Na Kozacce,s.r.o.	995 563	55 881	1 051 444	-	1 051 444	55 881	482 551	94 464	577 015	-	577 015	94 464	CZK
Beta Development, s.r.o.	5 144	-	5 144	(5 144)	-	-	-	-	-	-	-	658	CZK
Brno Centrum, s.r.o.	-	-	-	-	-	-	-	-	-	-	-	4 571	CZK
Bubny development, s.r.o.	31 322 502	2 442 676	33 765 178		- 33 765 178	2 442 676			24 547 285 1 788 218 26 335 503	-	26 335 503	1 788 218	CZK
Capellen Invest s.a.	6 717 243	551 104	7 268 347	(3 481 454)	3 786 893	551 104	6 583 527	533 716	7 117 243	(2 721 759)	4 395 484	533 716	EUR
CEREM SA	40 713 229	3 344 666		44 057 895 (34 577 163)	9 480 732	3 344 666			40 856 518 2 456 162 43 312 680 (31 536 725)		11 775 955	2 456 162	EUR
City Gate, s.r.o.	-	-	-	-	-	-	-	-	-	-	-	12 424	EUR
Darilla, a.s.	55 635	4 319	59 954	(59 954)	-	4 319	49 121	991	50 112	(49 121)	991	991	CZK
Development Doupovská, s.r.o.	1 359 200	102 286	1 461 486	-	1 461 486	102 286	1 031 464	81 288	1 112 752	-	1 112 752	81 288	CZK
Development Vision Sp Z.o.o.	-	-	-	-	-	6 831	-	-	-	-	-	-	PLN
Diana Property, Sp. z o.o.	63 088	7 434	70 523	-	70 523	54 638	75 641	3 168	78 810	-	78 810	13 719	PLN
Diana Property, Sp. z o.o.	512 255	60 923	573 178	-	573 178	-	762 255	10 551	772 805	-	772 805	-	EUR
Domain, Sp. z o.o.	-	-	-	-	-	-	-	-	-	-	-	2 546	PLN
Endurance Advisory Company, s.a.	-	-	-	-	-	49 824	-	-	-	-	-	-	EUR
Endurance HC Eta, s.à r.l.	6 794	-	6 794	-	6 794	-	-	-	-	-	-	-	EUR
Endurance Hospitality Asset Endurance Hospitality Finance,	117 883	8 899	126 782	(126 782)	-	8 899	96 651	7 732	104 383	(104 383)	-	7 732	EUR
s.à.r.l. Endurance Real Estate	82 888 220	68 064		82 956 284 (53 220 581) 29 735 703		68 064	37 018 753		- 37 018 753	-	37 018 753	-	EUR
Management Co. s.a.	1 978 273	168 001	2 146 274	-	2 146 274	168 001	3 880 000	100 609	3 980 609	-	3 980 609	100 609	EUR
Energia Jeden, Sp. z o.o.	-	-	-	-	-	1 784	-	-	-	-	-	-	PLN
ENOR-Hungary Kft.	-	-	-	-	-	77	-	-	-	-	-	-	EUR
Hagibor Office Building, a.s.	3 634 470	288 391	3 922 861	(0)	3 922 861	288 391		1 623 916 1 726 650	3 350 566	-	3 350 566	1 726 650	CZK
Hospitality Invest, s.à.r.l.	-	-	-	-	-	-	-	-	-	-	-	23 110	EUR
IPB Real,a.s.	166 011	171 913	337 924	-	337 924	214 843	-	-	-	-	-	166 642	CZK
IPB Real,s.r.o.	2 929 950	209 354	3 139 305	(1 604 519)	1 534 785	209 354	2 174 167	161 793	2 335 959	(1 074 316)	1 261 644	161 793	CZK
Jihovychodni Mesto,a.s.	10 016 080	804 702	10 820 782		- 10 820 782	804 702	8 486 871	657 522	9 144 392	-	9 144 392	657 522	CZK
Londýnská 39, s.r.o.	-	-	-	-	-	-	-	-	-	-	-	20 272	CZK
Londýnská 41, s.r.o.	-	-	-	-	-	-	-	-	-	-	-	14 067	CZK

			As at December 31, 2010			2010			As at December 31, 2009			2009
Affiliated	Loan	Accrued	Total	Impairments	Net book	Interest	Loan	Accrued	Total	Impairments	Net book	Interest	Original
undertakings	nominal	Interest	gross value		value	income	nominal	Interest	gross value		value	income	Currency
M & O Sp z.o.o.	2 097 693	334 317	2 432 010	(339 188)	2 092 822	172 975	2 008 209	161 342	2 169 551	(15 121)	2 154 430	161 342	PLN
Machova-Orco ,a.s.	-	-	-	-	-	-	-	51 098	51 098	(51 098)	-	51 098	CZK
Meder 36 Kft	1 201 072	96 086	1 297 157	(1 174 667)	122 491	96 086	1 113 049	88 023	1 201 072	(1 201 072)	-	88 023	EUR
Megaleiar A.S.	5 231	57 377	62 608	-	62 608	57 377	646 491	44 769	691 260	-	691 260	44 769	CZK
Mikhailovka Land o.o.o.	20 057	1 479	21 536	(21 536)	-	1 479	3 471	-	3 471	-	3 471	-	USD
MMR Management, s.r.o.	728 422	160	728 582	-	728 582	9 458	85 408	7 269	92 678	-	92 678	7 269	EUR
MMR Russia sàrl	444 157	-	444 157	-	444 157	1 767 933	39 614 671 7 392 568		47 007 239		(1 473 079) 45 534 160	8 121 533	EUR
MMR Yougoslavia	22 994	-	22 994	(22 994)	-	-	22 994	-	22 994	(22 994)	-	-	EUR
N W D C Company spol. s r.o.	-	-	-	-	-	-	-	-	-	-	-	6 441	CZK
Na Poříčí, a.s.	5 380 076	394 130	5 774 207	-	5 774 207	394 130	3 516 360	890 988	4 407 348	-	4 407 348	890 988	CZK
Nové Medlánky, a.s.	-	-	-	-	-	-	-	-	-	-	-	7 375	CZK
Nupaky a.s.	3 712	353 290	357 002	-	357 002	353 290	4 024 315	330 589	4 354 905	-	4 354 905	330 589	CZK
Office Center Hradčanská, a.s.	10 461 061	841 486		11 302 547 (10 564 189)	738 358	841 486	8 386 627	965 382	9 352 009	(9 352 009)	-	965 382	CZK
Office II Invest, s.a.	1 351 280	124 465	1 475 745	-	1 475 745	124 465	932 095	-	932 095	(326 827)	605 268	-	EUR
Onset a.s.	9 275	214 819	224 095	-	224 095	214 819	2 449 942	186 570	2 636 512	(1 174 248)	1 462 264	186 570	CZK
OPG France, s.a.s.	300	-	300	-	300	-	-	-	-	-	-	-	EUR
Orco Adriatic d.o.o.	3 919 014	238 320	4 157 334	(2 229 170)	1 928 164	339 813	2 547 219	114 939	2 662 157	(1 402 132)	1 260 026	114 939	EUR
Orco Blumentálska, a.s.	13 010 649	715 191		13 725 840 (13 725 840)	-	875 772	11 868 978	945 691	12 814 668	(12 814 668)	-	945 691	EUR
Orco Bucharest	2 511	-	2 511	(2 511)	-	-	2 511	-	2 511	(2 511)	-	-	EUR
Orco Budapest Zrt.	4 211 398	344 365	4 555 763	(4 555 763)	-	344 365	5 247 620	354 968	5 602 587	(5 602 587)	-	354 968	EUR
Orco Commercial Sp. z o.o.	5 001 910	912 656	5 914 565	(1 481 567)	4 432 999	426 576	6 169 809	486 080	6 655 888	(1 060 412)	5 595 477	486 080	PLN
Orco Construction Sp. z o.o.	5 006 688	792 834	5 799 522	(5 799 522)	-	410 805	4 759 117	382 028	5 141 145	(4 070 562)	1 070 583	382 028	PLN
Orco Development Kft	14 410	1 121	15 531	(14 516)	1 015	1 121	9 430	1 179	10 609	(10 609)	-	1 179	EUR
Orco Development Sp. z o.o.	3 277 535	506 049	3 783 584	(3 783 584)	-	266 333	3 066 627	239 716	3 306 344	(3 306 344)	-	239 716	PLN
ORCO Development, s.r.o.	6 485 309	493 506	6 978 815	-	6 978 815	493 506	5 665 414	448 064	6 113 478	-	6 113 478	448 064	EUR
Orco Enterprise Sp. z.o.o.	1 468 170	729 086	2 197 256	(1 372 411)	824 845	311 617	5 910 804	417 469	6 328 273	(1 764 320)	4 563 953	417 469	PLN
Orco Estate Sp.z.o.o.	1 774 464	277 571	2 052 035	(2 052 035)	-	144 496	1 663 741	133 075	1 796 816	(1 796 816)	-	133 075	PLN
Orco Estate,s.r.o.	-	-	-	-	-	32 098	1 028 370	76 975	1 105 345	-	1 105 345	76 975	CZK
ORCO Estates, s.r.o.	12 496 510	962 366		13 458 877 (10 933 612)	2 525 264	962 366	10 924 282	848 463	11 772 745	(9 300 565)	2 472 180	848 463	EUR
Orco Financial Services, s.r.o.	4 191	18 765	22 956	(12 673)	10 283	18 765	170 414	15 813	186 227	(186 227)	-	15 813	CZK
Orco Germany s.a.	16 237 346	1 427 883	17 665 229		- 17 665 229	1 427 883	17 038 130 1 341 199		18 379 329		- 18 379 329	1 341 199	EUR
Orco Investment,a.s.	-	-	-	-	-	10 702	1 582 553	145 886	1 728 438	-	1 728 438	145 886	CZK
Orco Logistic Sp. Z.o.o.	6 279 137	1 007 782	7 286 919	(4 736 471)	2 550 448	502 329	6 278 518	505 453	6 783 971	(4 692 527)	2 091 444	505 453	EUR
Orco Pokrovka Management o.o.o.	-	-	-	-	-	-	486	-	486	(486)	-	-	EUR
Orco Poland Sp. z o.o.	754 395	202 052	956 447	(788 370)	168 077	72 334	2 241 529	129 718	2 371 247	(1 724 044)	647 203	129 718	PLN
Orco Praga, s.r.o.	5 967 087	474 198	6 441 285	(6 441 285)	-	474 198	5 163 627	423 682	5 587 310	(2 748 663)	2 838 646	423 682	CZK
Orco Prague,a.s.	1 852 252	210 194	2 062 446	(552 377)	1 510 069	210 194	1 364 140	278 057	1 642 197	-	1 642 197	278 057	CZK

			As at December 31, 2010				2010 As at December 31, 2009					2009
Affiliated	Loan	Accrued	Total	Impairments	Net book	Interest	Loan	Accrued	Total	Impairments	Net book	Interest	Original
undertakings	nominal	Interest	gross value		value	income	nominal	Interest	gross value		value	income	Currency
Orco Project Kft.	-	-	-	-	-	57	-	-	-	-	-	-	EUR
Orco Project, Sp. z o.o.	4 494	-	4 494	(4 494)	-	-	-	-	-	-	-	59 706	PLN
Orco Property Management, a.s.	-	-	-	-	-	-	-	-	-	-	-	44 761	CZK
Orco Property Sp. z o.o.	19 437 355	2 438 677	21 876 032	-	21 876 032	1 206 445	14 219 698	1 232 232	15 451 929	-	15 451 929	1 232 232	PLN
Orco Razvoj, d.o.o.	1 093 192	87 455	1 180 648	(711 887)	468 760	87 455	1 012 215	80 977	1 093 192	(547 360)	545 832	80 977	EUR
Orco Residence, s.r.o.	1 515 226	121 218	1 636 444	(1 636 290)	154	121 218	1 402 987	112 239	1 515 226	(1 515 226)	-	112 239	EUR
Orco Residential Sp. z o.o.	780 333	1 040 815	1 821 148	-	1 821 148	497 041	7 067 257	543 774	7 611 031	-	7 611 031	543 774	PLN
Orco Russian Retail, SA	18 555 577	1 461 101	20 016 678	(13 813 064)	6 203 614	1 461 101	16 754 027	1 334 550	18 088 577	(18 088 577)	-	1 334 550	EUR
Orco Slovakia, s.r.o.	640 956	54 112	695 068	(632 183)	62 885	54 112	463 330	26 831	490 160	(366 937)	123 224	26 831	EUR
Orco Vagyonkezelő, Kft.	-	31 185	31 185	-	31 185	31 185	916 975	66 427	983 401	-	983 401	66 427	EUR
Orco Vinohrady, a.s.	-	-	-	-	-	-	-	-	-	-	-	7 391	CZK
Orco-Molcom B.V.	16 348	412	16 760	-	16 760	3 193 245	3 073 673	303 737	3 377 411	-	3 377 411	3 378 442	EUR
Orco-Molcom B.V.	-	-	-	-	-	-	30 432 080	3 074 705	33 506 785	-	33 506 785	-	USD
Origo Investment Kft	-	-	-	-	-	-	-	-	-	-	-	130 520	EUR
Pachtuv Palac s.r.o.	6 892 794	517 172	7 409 965	-	7 409 965	517 172	5 685 527	408 301	6 093 828	(3 160 119)	2 933 709	408 301	EUR
Palito, a.s.	-	-	-	-	-	-	129 547	5 332	134 879	(89 039)	45 840	5 332	CZK
Prvni Kvintum Praha a.s.	856 021	65 776	921 797	-	921 797	65 776	701 738	43 510	745 247	-	745 247	42 102	CZK
Residence Masaryk, a.s.	-	-	-	-	-	295 594	6 762 480	655 264	7 417 745	(2 358 443)	5 059 301	655 264	CZK
Seattle, s.r.o.	-	-	-	-	-	-	-	-	-	-	-	16 041	CZK
Suncani HVAR, d.d.	8 711 028	2 403 967	11 114 995	-	11 114 995	1 032 612	8 544 410	1 326 946	9 871 356	-	9 871 356	1 326 946	EUR
Theonia Entreprises Company Ltd	8 560	-	8 560	(7 948)	612	-	2 990	-	2 990	-	2 990	-	EUR
TQE Asset, a.s.	4 111 985	214 302	4 326 287	-	4 326 287	214 302	282 407	1 294 663	1 577 071	-	1 577 071	1 294 663	CZK
Váci 1 Kft.	4 181 416	143 706	4 325 122	-	4 325 122	143 706	3 731 723	115 262	3 846 985	-	3 846 985	115 262	EUR
Vinohrady s.a.r.l.	42 218	29 024	71 242	-	71 242	29 024	534 635	51 375	586 010	-	586 010	51 375	EUR
Viterra Cescka spol. S.r.o.	49 044	158 007	207 051	(37 471)	169 580	158 007	1 851 179	215 177	2 066 356	(2 066 356)	-	215 177	EUR
Vysočanská brána, a.s.	8 000 571	609 842	8 610 414	(8 610 414)	-	609 842	6 639 374	549 093	7 188 467	(4 896 455)	2 292 012	549 093	CZK
Záhřebská 35, s.r.o.	-	-	-	-	-	-	-	-	-	-	-	24 805	CZK
				373 217 508 29 895 100 403 112 609 (189 140 380)	213 972 229	30 369 345		404 699 157 37 588 413	442 287 571	(138 502 907)	303 784 664	39 263 614

9.2 Other loans

The Company provided a subordinated bridge loan to BB C – Building E, k.s., a Czech subsidiary of the Endurance Fund, pursuant to the loan agreement dated 15 October 2010. The loan was used to cover an extraordinary payment required by the financing bank. The Company"s loan of EUR 700,000 has a final repayment date of 26 August 2013 and bears an annual interest of 30%.

On 4 December 2008, the Company has granted a seller"s financing of EUR 1.4 million (which was fully impaired as of 31 December 2009 as a result of the termination of the consulting contract with that company) to Vignette Investissements S.A., a French company managed by Keith Lindsay, against transferring 10% of the shares of MMR Management s.r.o., a limited liability company, incorporated under Czech"s Law and a wholly owned subsidiary of the Company to Vignette Investissements S.A.. This advance was granted for a period of 7 years ending on 31 December 2015. Vignette Investments S.A. and the Company agreed to unwind the transaction following termination of cooperation. As such, 10% of the shares of MMR Management s.r.o. were returned by Vignette Investissements S.A. to the Company with effective date 16 December 2010.

The movements are follows:

	Gross		Net
	amount	Impairments	book value
In EUR
Balance at 1 January 2009	1 400 000	-	1 400 000
Additions / (Impairments)	-	(1 400 000)	(1 400 000)
(Disposals) / Reversal of impairments	-	-	-
Balance at 31 December 2009	1 400 000	(1 400 000)	-
Additions / (Impairments)	700 000	-	700 000
(Disposals) / Reversal of impairments	(1 400 000)	1 400 000	-
Balance at 31 December 2010	700 000	-	700 000

9.3 Guarantee deposits and similar

Guarantee deposit and similar financial assets consist of guarantee deposits paid by the Company for a total of EUR 486.805 from which EUR 200.000 as guarantee deposit to KBC Bank N.V. for a cash pooling agreement between all bank accounts opened by the Company with other banks from KBC Bank"s group and EUR 160.000 to Ceská Sporitelna Bank for a company project.

The movements are follows:

	Gross		Net
	amount	Impairments	book value
In EUR
Balance at 1 January 2009	200 000	-	200 000
Additions / (Impairments)	8 085	-	8 085
(Disposals) / Reversal of impairments	-	-	-
Balance at 31 December 2009	208 085	-	208 085
Additions / (Impairments)	278 720	-	278 720
(Disposals) / Reversal of impairments	-	-	-
Balance at 31 December 2010	486 805	-	486 805

10. Cash and cash equivalents

As at 31 December 2010, the cash and cash equivalents consist of short term deposits for EUR 1.9 million (none in 2009), cash in bank for EUR 2.8 million (EUR 4.3 million in 2009) and cash in stock brokers accounts for EUR 0.1 million (none in 2009).

11. Bonds and derivatives

11.1 Non-current bonds

Non-current bonds (in KEUR)	Convertible	Non-convertible	TOTAL
	bonds	bonds
Balance at 1 January 2009	154 439	188 205	342 644
Interest accumulated during the period	15 724	13 781	29 505
Transfert to short term	-	-47 921	-47 921
Owns Bonds	3 933	8 194	12 127
Balance at 31 December 2009	174 096	162 259	336 355
Interest from 31 Dec to 19 May	6 113	3 278	9 391
Balance at 19 May 2010	180 209	165 537	345 746
Derecognition of bonds	-180 209	-165 537	-345 746
Entry of new bonds	51 141	82 744	133 885
Interest from 19 May to 31 December	7 434	12 183	19 617
Balance at 31 December 2010	58 575	94 927	153 502

In 2010

On 19 May 2010, the Company"s Safeguard plan was approved (see note 2.1.1.2). This results in a term out of the repayment of the bonds nominal, accrued interests, and interest to accrue over the ten years Safeguard plan, with effect from 30 April 2010 as described by the amortisation table included in note 2.1.1.2. As a result the bonds covered by the Safeguard plan (all the bonds issued by the Company) have been derecognised and termed out bonds have been recorded at fair value at the date of the approval of the Safeguard plan. The fair value has been estimated by Management with the assistance of an independent expert (Grant Thornton). On the basis of comparables, the effective interest rate of the "Safeguard bonds" was set at 23.1% resulting in a total value of EUR 142.9 million at 19 May 2010 out of which EUR 133.9 million is classified as Non-current.The derecognition of the debts results in a gain of EUR 281.8 million.

Consequently to the approval of the Safeguard plan, the terms of the restructured bonds are identical to the ones described in the 31 December 2009 stand alone financial statements except for the following points:

• Call options on the Company"s shares embedded in the 2013 convertible bonds can now only be served by delivering new shares.
• Call options on the Suncani Hvar d.d. shares embedded in the 2012 exchangeable bonds are void.
• The conditional redemption premium on the 2010 bond will only be repaid in 2020 upon realization of conditions.
• A fixed exchange rate has been defined for the repayment of the Czech bonds by 27.295 CZK for 1 Euro.

As at 31 December 2010, the fair value of the bonds, valued by Management, amounts to EUR 168.4 million for the termed out bonds.

	Carrying value of	Fair value of
In KEUR	termed out bonds	termed out bonds
Bonds	153 502	168 350
Bonds as at 31/12/2010	153 502	168 350

In 2009

No new bonds have been issued in 2009.

The transfer of bonds to short term (EUR -47.9 million) relates to the OBSAR 1 bond which is due for redemption in November 2010.

In 2009 Orco Property Group sold 76,279 convertibles bonds on the open market for a total consideration of EUR 1.2 million.

Based on requests for early redemption received from individual holders of the Czech bond (the "Bond CZK") that was issued in February 2006, the Company reimbursed 110 bonds (out of 140 outstanding) in 2008 amounting to CZK 1,100,000,000 (EUR 40.8 million). During the year 2009, bondholders requested the reimbursement of 27 bonds CZK, out of the 30 bonds still outstanding, for a value of CZK 200,000,000 (EUR 7.7 million). The Bond CZK is classified in short term for CZK 300,000,000 (EUR -11.3 million) as its repayment can be requested on demand due to a breach of loan covenant (the CZK bonds were downgraded by Moody"s in 2008).

11.2 Exchangeable bonds in Suncani Hvar shares

The acquisition of Suncani Hvar dd has been financed by a private placement of an exchangeable bond issued by the Company under the following terms:

Due to the application of the Safeguard plan (see note 2.1.1.2), the terms and conditions have been changed for the following ones:

Bonds
Nominal	EUR 24,169,193
Number of bonds	928,513
Nominal value per bond	EUR 26.03
Deemed issue price per bond	EUR 10.38
Effective interest rate	23.1 %
Exchange at the discretion of bondholder	NA
Repayment date	the non exchanged bonds will be reimbursed at nominal value in cash following the repayment schedule of the Safeguard plan and until 30 April 2020
ISIN	XS0223586420
Listing	Luxembourg Stock Exchange

Repayment schedule for interests and principal according to the Safeguard Plan (in KEUR)

	30 April 2011	30 April 2012	30 April 2013	30 April 2014	30 April 2015	30 April 2016	30 April 2017	30 April 2018	30 April 2019	30 April 2020
Principal	-	-	-	-	-	20	2 536	4 221	6 771	10 621
Interests	773	1 932	1 932	1 932	1 932	1 912	1 328	1 189	957	584

Terms and conditions before 19 May 2010

Bonds
Nominal	EUR 24,169,193
Number of bonds	928,513
Issue price per bond	EUR 26.03
Issue date	30 June 2005
Nominal interest rate	5.5 %
Exchange at the discretion of bondholder	between 1 July 2010 and 11 June 2012 in Suncani Hvar dd share, one share for one bond.
Repayment date	the non exchanged bonds will be reimbursed at nominal value in cash on 30 June 2012
ISIN	XS0223586420
Listing	Luxembourg Stock Exchange

As at 31 December 2010 and 2009, no bond had been exchanged.

The funds raised with this exchangeable bond have been at issuance divided into a long-term debt component and a long term derivative component. Furthermore, the costs linked to the issuance of the bond were deducted from the funds raised. The derivative component of EUR 0.7 million in 2009 and classified in derivatives financial instruments (non-current) has been derecognized in 2010, as application of the Safeguard plan does not enable to exchange the bonds into Suncani Hvar DD shares. In this context, the exchangeable bonds are now fully reported as non convertible bonds.

In KEUR

Balance at 31 December 2008	19 395
Interest accumulated during the period	1 664
Owns Bonds	2 662
Balance at 31 December 2009	23 721
Interest from 31 Dec to 19 May	56
Balance at 19 May 2010	23 777
Derecognition of bonds	-23 777
Entry of new bonds	9 635
Interest from 19 May to 31 December	1 323
Balance at 31 December 2010	10 958

As at 31 December 2010, the market price of Hvar dd shares on the Zagreb Stock Exchange was HRK 29.74 (HRK 29.50 at 31 December 2009).

As 31 December 2010, the current part of the bonds amounts to EUR 0.8 million (nil in 2009).

11.3 Bonds with repayable subscription warrants ("OBSAR 1")

In 2007, the Company launched an exchange offer on the 2012 callable warrants (BSAR 2012) (ISIN code: LU0234878881). Each holder of warrants was entitled to elect to receive, for every 3 BSAR 2012, 1 new share of the Company and 3 new BSAR 2014 (ISIN code: XS0290764728). The prospectus of the exchange offer on the 2012 callable warrants of the Company was approved by the Commission de Surveillance du Secteur Financier (CSSF) on 22 October 2007. The offer closed on 16 November 2007 with 1,077,861 2012 callable warrants tendered into the offer (success rate of 98.07%).

As a consequence:

• 359,287 new shares have been issued.
• 1,077,861 new 2014 callable warrants (exercise price of EUR 146.39) have been issued. The number of warrants reaches 2,871,021. The exercise ratio is mechanically adjusted as follows: 1.03 share for one 2014 callable warrant exercised at EUR 146.39 in 2014. Refer to note 11.6 for amendments on BSAR 2014. The resolution was approved by 95.11% of the warrant holder present (out of which 91.7% were represented by key management personnel) with over 50% of warrant holders present or represented.
• The number of existing 2012 callable warrants (exercise price of EUR 68.61) is thus reduced to 21,161. The exercise ratio is mechanically adjusted as follows: 1.03 share for one 2012 callable warrant exercised at EUR 68.61.

Amendments applicable in 2010

As from 20 January 2010 the warrantholders resolved that the remaining 21,161 embedded warrants ("BSAR 2012"), corresponding to 15 warrants per issued bond, can be exercised to obtain Orco shares according to a 1/8.7 ratio and at an exercise price of EUR 60.90, which implied that 1 share = EUR 7. The exercise period starts on 20 January 2010 and ends on 15 February 2010.

As from 20 January 2010 the warrantholders resolved to modify the "Soft Call Prices" (the option by the issuer to reimburse the warrants) in three different tranches:

The first tranche (1/3 of the warrants) = to EUR 87 The second tranche (1/3 of the warrants) = to EUR 130.5 The third tranche (1/3 of the warrants) = to EUR 174

As from 15 February 2010 it was resolved that the remaining 21,161 embedded warrants ("BSAR 2012"), corresponding to 15 warrants per issued bond, can be exercised to obtain Orco shares according to a 1/1.03 ratio and at an exercise price of EUR 7.21, which implied that 1 share = EUR 7. The exercise period starts on 16 February 2010 and ends on 18 November 2012.

As from 15 February 2010 the warrantholders resolved to modify the "Soft Call Prices" (the option by the issuer to reimburse the warrants) in three different tranches:

The first tranche (1/3 of the warrants) = to EUR 10.30

The second tranche (1/3 of the warrants) = to EUR 15.45

The third tranche (1/3 of the warrants) = to EUR 20.60

On 22 April 2010, the general meeting of the holders of the warrants 2012 extended the exercise period of the warrants from 18 November 2012 up to 31 December 2019. The exercise price and exercise ratio remain the same.

Due to the application of the Safeguard plan (see note 2.1.1.2.), the terms and conditions have been changed for the following ones:

Bonds

Nominal	EUR 50,272,605
Number of bonds	73,273
Nominal value per bond	EUR 686.10
Deemed issue price per bond	EUR 237.02
Redemption	30 April 2020
Normal Redemption	the OBSAR 1 will be reimbursed at nominal value in cash following the repayment schedule of the Safeguard plan and until 30 April 2020
Early Redemption	NA
Effective interest rate	23.1%
ISIN	FR0010249599
Listing	Euronext - Paris
Warrants
Number of warrants	21,161 (corresponding to an initial ratio of 15 warrants/issued bond)
Exercise ratio	one warrant gives the right to 1.03 share
Exercise price	EUR 7.21
Exercise period	until 31 December 2019
Early repayment	From 19 November 2007 the issuer may reimburse the warrants at EUR 0.01
ISIN	LU0234878881
Listing	Euronext – Paris

Repayment schedule for interests and principal according to the Safeguard Plan (in KEUR)

	30 April 2011	30 April 2012	30 April 2013	30 April 2014	30 April 2015	30 April 2016	30 April 2017	30 April 2018	30 April 2019	30 April 2020
Principal	-	-	-	-	129	1 567	5 277	8 667	13 683	20 948
Interests	1 105	2 920	3 146	3 373	3 470	2 256	2 186	1 948	1 558	943

Terms and conditions before 19 May 2010

Bonds
Nominal	EUR 50,272,605
Number of bonds	73,273
Nominal value per bond	EUR 686.10
Issue price per bond	EUR 682.38
Redemption	18 November 2010
Normal Redemption	at par, EUR 686.10 per bond, if the average price quoted over the ten stock exchange trading sessions preceding the Redemption Date, of the products of the closing price of the Orco Property Group S.A. share on the Euronext Paris S.A. Eurolist market and of the Exercise Parity applicable during the said stock exchange sessions is equal to or greater than the Exercise Price of the Redeemable Share Subscription Warrants,

	at 120% of par, that is EUR 823.32 per Bond, if the average price quoted over the ten stock exchange trading sessions preceding the Redemption Date, of the products of the closing price of the Orco Property Group share on the Euronext Paris S.A. Eurolist market and of the Exercise Parity applicable during the said stock exchange sessions is less than the Exercise Price of the Redeemable Share Subscription warrants.
Early Redemption	Option for the Group to redeem all bonds at 120% of the par value on any Interest Payment Date subject to one month"s notice to bearers before the early redemption date.
Nominal interest rate	4.5%
ISIN	FR0010249599
Listing	Euronext - Paris
Warrants
Number of warrants	21,161 (corresponding to an initial ratio of 15 warrants/issued bond)
Exercise ratio	one warrant gives the right to 1.03 share
Exercise price	EUR 68.61
Exercise period	until 18 November 2012
Early repayment	From 19 November 2007 the issuer may reimburse the warrants at EUR 0.01
ISIN	LU0234878881
Listing	Euronext - Paris

The funds raised with this bond have been at issuance divided into a long-term debt component, an equity component and a derivative component. Furthermore, the costs linked to the issuance of the bond were deducted from the funds raised. At issuance, the equity component (EUR 3.7 million reduced by EUR 2.4 million deferred taxes), classified in other reserves, represented the market value of the subscription warrants embedded in the bond.

On 18 November 2010, end of the exercice period of the early redemption option, the average share price of the OPG shares over ten stock exchange trading sessions preceding the redemption date (EUR 7.47 on the Euronext stock Exchange) was above the exercice price of the redeemable share subscription warrant (EUR 7.21). In this context, no redemption premium is due to the bondholder, the derivative has been derecognized through income statement for a total profit of EUR 6.8 million.

As 31 December 2010, the current part of the bonds amounts to EUR 1.1 million (EUR 47.9 million in 2009).

In KEUR

Balance at 31 December 2008	45,488
Interests accumulated during the period	2,433
Balance at 31 December 2009	47,921
Interests from 31 Dec to 19 May	972
Balance at 19 May 2010	48,893
Derecognition of Bonds	-48,893
Entry of new bonds	17,368
Interests from 19 May to 31 December 2010	2,385
Balance at 31 December 2010	19,753

11.4 Convertible bonds 2006-2013

Due to the application of the Safeguard plan (see note 2.1.1.2), the terms and conditions have been changed for the following ones:

Bonds
Nominal	EUR 149,999,928
Number of bonds	1,086,956
Nominal value per bond	EUR 138.00
Deemed issue price per bond	EUR 49.81
Redemption price if not converted	138.62% of par at EUR 191.29; i.e. a gross yield-to-maturity of 5.65%
Effective interest rate	23.1 %
Normal Redemption	the non converted bonds will be reimbursed at nominal value in cash following the repayment schedule of the Safeguard plan and until 30 April 2020
Conversion ratio	One new share for one bond
Early Redemption	Subject to the one month"s notice to bearers before the early redemption date, the Group (with the approval of the "Tribunal de Commerce de Paris") may redeem all bonds from 1 July 2008 under the condition that the share price of Orco Property Group exceeds 130 % of the issue price during 30 consecutive days after 1 June 2008. The bondholders who did not convert within 30 days will, on top of the par and accrued interest, receive a reimbursement premium giving them a 5.65 % IRR.
ISIN	FR0010333302
Listing	Euronext – Paris

Repayment schedule for interests and principal according to the Safeguard Plan (in KEUR)

	30 April 2011	30 April 2012	30 April 2013	30 April 2014	30 April 2015	30 April 2016	30 April 2017	30 April 2018	30 April 2019	30 April 2020
Principal	3,000	3,433	6,425	16,536	9,818	9,814	21,008	29,959	43,679	64,257
Interests	0	4,373	1,470	2,807	1,371	1,375	1,371	1,371	1,079	643

Terms and conditions before 19 May 2010

Bonds
Nominal	EUR 149,999,928
Number of bonds	1,086,956
Nominal value per bond	EUR 138.00
Issue price per bond	at par value, EUR 138.00
Redemption price if not converted	138.62% of par at EUR 191.29; i.e. a gross yield-to-maturity of 5.65%
Nominal interest rate	1.0%
Normal Redemption	the non converted bonds will be reimbursed in cash on 31 May 2013.
Conversion ratio	One new share for one bond
Issuance date	01 June 2006
Early Redemption	Subject to the one month"s notice to bearers before the early redemption date, the Company may redeem all bonds from 1 July 2008 under the condition that the share price of Orco Property Group exceeds 130 % of the issue price during 30 consecutive days after 1 June 2008. The bondholders who did not convert within 30 days will, on top of the par and accrued interest, receive a reimbursement premium giving them a 5.65 % IRR.
ISIN	FR0010333302
Listing	Euronext – Paris

In KEUR
Balance at 31 December 2008	135 044
Interest accumulated during the period	14 059
Owns Bonds	1 272
Balance at 31 December 2009	150 375
Interest from 31 Dec to 19 May	6 057
Balance at 19 May 2010	156 432
Derecognition of bonds	-156 432
Entry of new bonds	54 141
Interest from 19 May to 31 December	7 434
Balance at 31 December 2010	61 575

As 31 December 2010, the current part of the bonds amounts to EUR 2.9 million (nil in 2009).

As at 31 December 2010 and 2009, no bond had been converted.

The funds raised with this convertible bond have been at issuance divided into a long-term debt component and an equity component. Furthermore, the costs linked to the issuance of the bond are deducted from the funds raised. The equity component (EUR 27.3 million reduced by EUR 8.3 million of deferred taxes), classified in other reserves, represents the market value on the date of the issuance of the call options embedded in the convertible bond.

As disclosed above, the terms of the issuance include a redemption premium to be paid by the Company if the bond is not converted. This premium is amortized as interest over the lifetime of the bond.

In 2010, a subsidiary of the Company invested part of its available funds buying 62,746 bonds on the open market for a total consideration of EUR 1.5 million and selling 35,541 bonds for a total consideration of EUR 1.4 million.

In 2009 the Company sold 76,279 bonds on the open market for a total consideration of EUR 1.2 million.

As at 31 December 2010, the Company"s subsidiaries hold 27 205 bonds (none as at 31 December 2009).

11.5 CZK 1.4 billion floating rate bond ("Czech Bond")

Due to the application of the Safeguard plan (see note 2.1.1.2), the terms and conditions have been changed for the following ones:

Bonds

Nominal	EUR 10,991,024
Number of bonds	30
Nominal value per bond	EUR 366,367
Deemed issue price per bond	EUR 135,806
Nominal interest rate	23.1 %
Final redemption date	30 April 2020
ISIN	CZ0000000195
Listing	Prague Stock Exchange
Fixed exchange rate applied	27.295 CZK for 1 EUR

Repayment schedule for interests and principal according to the Safeguard Plan (in KEUR)

	30 April 2011	30 April 2012	30 April 2013	30 April 2014	30 April 2015	30 April 2016	30 April 2017	30 April 2018	30 April 2019	30 April 2020
Principal	-	-	-	47	279	291	1,124	1,832	2,903	4,515
Interests	327	817	817	770	538	526	510	455	365	223

Terms and conditions before 19 May 2010

Bonds

Nominal	CZK 1,400,000,000
Number of bonds	140
Nominal value per bond	CZK 10,000,000
Issue price per bond	CZK 10,000,000
Nominal interest rate	6M Pribor + 2.20%
Issuance date	03 February 2006
Final redemption date	03 February 2011
ISIN	CZ0000000195
Listing	Prague Stock Exchange

IN KEUR

Balance at 31 December 2008	11,075
Interests accumulated during the period	26
Translation differences	196
Balance at 31 December 2009	11,297
Interests from 31 Dec to 19 May	335
Balance at 19 May 2010	11,632
Derecognition of Bonds	-11,632
Entry of new bonds	4,074
Interests from 19 May to 31 December 2010	560
Balance at 31 December 2010	4,634

As 31 December 2010, the current part of the bonds amounts to EUR 0.3 million (EUR 11.3 million in 2009).

Based on requests for early redemption received from individual holders following the downgrade of rating by Moody"s, the Company has reimbursed 110 bonds (out of 140 outstanding) amounting to 1,100,000,000 CZK (EUR 40.8 million in 2008). Out of the 30 remaining bonds, reimbursement requests have been received for 27 bonds in 2009.

See note 2.1.1.2 for covenants explaining the non-repayment of the balance in 2009 due to the Safeguard procedure.

11.6 Bonds with repayable subscription warrants ("OBSAR 2")

Refer to the note 11.3 on the OBSAR 1 concerning the exchange offer on the 2012 callable warrants.

On 16 December 2009, a general meeting of the holders of warrants 2014 was held and approved the following changes proposed by the Company to permit the exchange of warrants for shares and/or redemption of the bonds by the company prior to 2014:

Amendments applicable until February 15, 2010

Each warrant 2014 shall entitle the holder to acquire 8.7 existing shares and/or subscribe to 8.7 new shares at the exercise price of EUR 60.9 to be paid in cash.

The Company may redeem by tranches outstanding Warrants 2014 at any time until February 15, 2010 at a unit price of EUR 0.01 subject to the following conditions:

• the average share price of not less than 20 dealing days during the preceding period of 30 consecutive dealing days exceeds the relevant soft call price: EUR 87 for the first tranche being one third of outstanding warrants; EUR 130.5 for the second tranche being half of outstanding warrants; and EUR 174 for the remaining outstanding warrants.

Amendments applicable as from February 16, 2010

Each warrant 2014 shall entitle the holder to acquire 1.60 existing shares and/or subscribe to 1.60 new shares at the exercise price of EUR 11.2 to be paid in cash.

The Company may redeem by tranches outstanding Warrants 2014 at any time as from February 16, 2010 at a unit price of EUR 0.01 subject to the following conditions:

• the average share price of not less than 20 dealing days during the preceding period of 30 consecutive dealing days exceeds the relevant soft call price: EUR16 for the first tranche being one third of outstanding warrants; EUR 24 for the second tranche being half of outstanding warrants; and EUR 32 for the remaining outstanding warrants.

On 25 March 2010, a general meeting of the holders of warrants 2014 was held and approved the extension of the exercise period of the warrants 2014 until 31 December 2019.

Due to the application of the Safeguard plan (see note 2.1.1.2), the terms and conditions have been changed for the following ones:

Bonds

Issuer	Orco Property Group S.A.
Nominal	EUR 175,000,461
Number of bonds	119,544
Nominal value per bond	EUR 1,463.90
Deemed issue price per bond	EUR 482,21
Redemption	30 April 2020
Redemption price	117.5% of par at EUR 1,720.08
Effective interest rate	23.1 %
ISIN	XS0291838992 / XS0291840626
Listing	Euronext - Brussels
Warrants
Number of warrants	1,793,160 at issuance (corresponding to 15 warrants/issued bond)
	2,871,021 after the public exchange offer on the OBSAR 1
Exercise ratio	1 warrant gives the right to 1.73 shares (after taking into account anti dilutive clauses as a result of capital increases of April 2010)
Exercise price	EUR 11.2
Exercise period	until 31 December 2019
Early repayment	From 16 February 2010, the issuer may reimburse the warrants at EUR 0.01 if the average share price of not less than 20 dealing days during the preceding period of 30 consecutive dealing days exceeds the relevant soft call price: EUR 16 for the first tranche being one third of outstanding warrants; EUR 24 for the second tranche being half of outstanding warrants; and EUR 32 for the remaining outstanding warrants.
ISIN	XS0290764728
Listing	Euronext - Brussels
	Euronext - Paris

	30 April 2011	30 April 2012	30 April 2013	30 April 2014	30 April 2015	30 April 2016	30 April 2017	30 April 2018	30 April 2019	30 April 2020
Principal	-	-	1,119	6,221	6,785	7,328	18,582	28,316	42,746	94,528
Interests	3,774	9,747	9,071	4,407	4,250	4,089	3,892	3,421	2,703	1,624

Terms and conditions before 19 May 2010
-----------------------------------------	--	--	--

Bonds
Issuer	Orco Property Group S.A.
Nominal	EUR 175,000,461
Number of bonds	119,544
Nominal value per bond	EUR 1,463.90
Issue price per bond	EUR 1,421.45
Redemption	28 March 2014
Redemption price	117.5% of par at EUR 1,720.08, i.e. a gross yield-to-maturity of 7.383%.
Nominal interest rate	2.5%
ISIN	XS0291838992 / XS0291840626
Listing	Euronext - Brussels

Creditors in respect of the share subscription options maturing in 2014

The share subscription options maturing in 2014 issued by OPG on the basis of the prospectuses registered by the Commission de Surveillance du Secteur Financier on 22 March 2007 and 22 October 2007 (ISIN XS0290764728) could result in a liability for the Company in the event of any change in its control.

Warrants

Number of warrants	1,793,160 at issuance (corresponding to 15 warrants/issued bond)
	2,871,021 after the public exchange offer on the OBSAR 1
Exercise ratio	1 warrant gives the right to 1.03 shares (before amendments)
Exercise price	EUR 146.39 (before amendments)
Exercise period	until 28 March 2014
Early repayment	From 28 March 2012 the issuer may reimburse the warrants at EUR 0.01 if the average share price of not less than 20 dealing days during the preceeding period of 30 consecutive dealing days exceeds EUR 190.31 (before amendments)
ISIN	XS0290764728
Listing	Euronext - Brussels
	Euronext - Paris

The funds raised with this bond have been, at issuance, divided into a long-term debt component and an equity component. Furthermore, the costs linked to the issuance of the bond were deducted from the funds raised. The equity component (EUR 23.9 million reduced by EUR 2.4 million of deferred taxes), classified in other reserves, represents the market value on the date of the issuance of the subscription warrants embedded in the bond.

In KEUR
Balance at 31 December 2008	142 717
Interest accumulated during the period	11 348
Owns Bonds	8 194
Balance at 31 December 2009	162 259
Interest from 31 Dec to 19 May	3 277
Balance at 19 May 2010	165 536
Derecognition of bonds	-165 536
Entry of new bonds	57 645
Interest from 19 May to 31 December	7 915
Balance at 31 December 2010	65 560

As 31 December 2010, the current part of the bonds amounts to EUR 3.8 million (nil in 2009).

As at 31 December 2010, the Company"s subsidiaries owned 15,633 bonds (8,533 in 2009), amounting to EUR 2.4 million (EUR 1.4 million as at 31 December 2009).

In 2010, a subsidiary of the Company invested part of its available funds buying 7,100 bonds on the open market for a total consideration of EUR 2.4 million.

11.7 Current bonds

As at 31 December 2010, the movements in current bonds are the following:

Current bonds	Convertible	Non-convertible	TOTAL
	bonds	bonds
In KEUR
Balance at 31 December 2008	0	11 075	11 075
Transfer from non-current		47 921	47 921
Balance at 31 December 2009	0	58 996	58 996
Interest from 31 Dec to 19 May		1 529	1 529
Balance at 19 May 2010	0	60 525	60 525
Derecognition of bonds		-60 525	-60 525
Entry of new bonds	3 000	5 978	8 978
Balance at 31 December 2010	3 000	5 978	8 978

As at 31 December 2010 the current portion of the total bonds amounts to EUR 9.0 million, following the application of the repayment schedule of the Safeguard plan.

11.8 Derivatives

Derivative instruments are presented within other current assets when fair value is positive, within other current or non-current liabilities when fair value is negative. Changes in the fair value are recognized immediately in the income statement under "Net gain/(loss) on financial instruments at fair value".

Derivatives used by the Company include interest rate derivatives and embedded derivatives in bonds.

In 2009, Embedded derivatives on bonds correspond to the derivatives embedded in the OBSAR 2 and in the Exchangeable bonds in Suncani Hvar shares (see notes on the specific bonds 11.2 and 11.6).

The Company uses various types of interest rate derivative contracts to protect against changes in the fair value of its assets and liabilities due to fluctuations in interest rates.

Interest rate derivatives represent interest rate swaps. Interest rate swaps are agreements between two parties to exchange a series of interest payments on a common principal amount. Valued at their fair value, interest rate swaps cover floating interest rates against fixed rates.

	31 December	31 December
In KEUR	2010	2009
Share derivatives		703
Embedded derivatives on bonds		6 817
Interest rate derivatives		2 020
Total non-current liabilities	0	9 540
Embedded derivatives on bonds
Forex derivatives	1 137	2 440
Total current liabilities	1 137	2 440
Net derivatives	-1 137	-11 980

11.9 Average effective interest rates (current and non-current)

	31 December 2010
	EUR	CZK
Termed out bonds after 19 May 2010	23,10% -
Termed out bonds before 19 May 2010	7,31%	7,67%
		31 December 2009
	EUR	CZK
Bonds	9,05%	4,52%
		49

12. Loans from affiliated undertakings

Loans from affiliated undertakings are detailed as follows (in EUR):

			As at December 31, 2010		2010		As at December 31, 2009		2009
Affiliated	Country	Loan	Accrued	Total	Interest	Loan	Accrued	Total	Interest	Original
undertakings		nominal	Interest	Loan	expenses	nominal	Interest	Loan	expenses	Currency
Americká - Orco, a.s	Czech Republic	-	-	-	-	-	-	-	17 567	CZK
Anglicka 26,s.r.o.	Czech Republic	-	-	-	228 714	4 800 093	380 932	5 181 025	200 557	CZK
Brno Centrum, s.r.o.	Czech Republic	-	-	-	-	-	-	-	52 631	CZK
Bubenská 1, a.s.	Czech Republic	7 824 823	694 203	8 519 026	694 203	7 895 956	617 030	8 512 986	617 030	CZK
CWM 35 Kft	Hungary	17 298 491		388 737 17 687 228	388 737	16 067 629	1 288 046	17 355 675	1 288 046	EUR
Endurance Advisory Company, s.a.	Luxembourg	128 256	5 518	133 774	5 518	-	-	-	-	EUR
Endurance Hospitality Asset, sàrl	Luxembourg	729 609	-	729 609	-	729 609	-	729 609	-	EUR
Hospitality Invest sàrl	Luxembourg	-	-	-	-	-	-	-	125	EUR
IPB Real Reality as	Czech Republic	-	-	-	18	4 308	272	4 580	272	CZK
IPB Real,a.s.	Czech Republic	-	-	-	160 864	5 316 629	853 074	6 169 703	853 074	CZK
Jeremiášova Invest, s.r.o.	Czech Republic	689 374	60 746	750 120	60 746	674 662	57 507	732 169	57 507	CZK
Londýnská 26, a.s.	Czech Republic	-	-	-	-	-	-	-	50 324	CZK
Londýnská 39, s.r.o.	Czech Republic	-	-	-	-	-	-	-	414	CZK
Londýnská 41, s.r.o.	Czech Republic	-	-	-	-	-	-	-	44 603	CZK
Machova-Orco ,a.s.	Czech Republic	330 376	38 420	368 796	38 420	523 023	53 138	576 161	1 949	CZK
Mánesova 28, a.s.	Czech Republic	-	-	-	-	-	-	-	93 160	CZK
MMR Management, s.r.o.	Czech Republic	-	13 758	13 758	13 758	-	-	-	600	EUR
Nad Petruskou,s.r.o.	Czech Republic	-	-	-	40 597	852 841	47 253	900 094	47 253	CZK
Nove Medlanky as	Czech Republic	-	-	-	9 885	1 241 620	55 846	1 297 466	55 846	CZK
Oak Mill,a.s.	Czech Republic	868 924	66 724	935 648	66 724	726 402	54 966	781 368	54 966	CZK
Orco Estate,s.r.o.	Czech Republic	423 690	16 844	440 534	16 844	-	-	-	-	CZK
Orco Hungary Kft	Hungary	66 725	5 232	71 957	5 232	98 585	8 260	106 845	8 260	EUR
Orco Project, Sp z o o	Poland	-	3 571	3 571	3 100	42 653	471	43 124	471	PLN
Orco Vagyonkezelő, Kft.	Hungary	113 508	-	113 508	-	-	-	-	-	EUR
Seattle, sro	Czech Republic	222 903	33 205	256 108	22 840	744 057	54 168	798 225	54 168	CZK
T-O Green Europe, a.s.	Czech Republic	81 585	7 215	88 800	7 215	73 581	23 468	97 049	23 468	CZK
Viterra Development Polska sp.z.o.o.	Poland	1 969 479	1 817 602	3 787 081	793 739	13 851 291	1 023 863	14 875 154	1 023 863	PLN
Zahrebska 35 sro	Czech Republic	361 227	301 202	662 429	34 793	180 660	8 337	188 997	8 337	CZK
		31 108 970		3 452 977 34 561 947	2 591 947	53 823 599	4 526 631	58 350 230	4 554 490

The Company has global agreement with all its subsidiaries for loans bearing 8% interest and a maturity on 31 December 2020.

13. Trade and other payables

Total	8 030 674	2 000 000	1 361 349	11 392 023
Other current liabilities	192 521	-	-	192 521
Debt on realized FX Forward agreement	-	-	1 161 349	1 161 349
Accrued liabilities	565 877	2 000 000	200 000	2 765 877
Fiscal liabilities	2 950 077	-	-	2 950 077
Payable on assets purchase	2 113 294	-	-	2 113 294
Bank overdrafts	5 167	-	-	5 167
Trade payables (included interco)	2 203 738	-	-	2 203 738
As at 31 December 2010 In EUR	Less than 1 month	Between 1 and 6 months	Between 6 months and 1 year	TOTAL

As at 31 December 2009 In EUR	Less than 1 month	Between 1 and 6 months	Between 6 months and 1 year	TOTAL
Trade payables (included interco)	1 722 313	-	-	1 722 313
Bank overdrafts	35	-	-	35
Accrued interest on bonds	-	-	14 529 980	14 529 980
Payable on assets purchase	2 070 365	-	-	2 070 365
Fiscal liabilities	1 270 324	-	-	1 270 324
Accrued liabilities	145 000	500 000	100 000	745 000
Debt on realized FX Forward agreement	-	-	1 312 586	1 312 586
Other current liabilities	670 631	-	-	670 631
Total	5 878 668	500 000	15 942 566	22 321 234

14. Administrative expenses and employee benefits

	Year ended 31 December
	2010	2009
In EUR
Salaries	(1 502 306)	(1 158 533)
Social security	(269 752)	(74 609)
Other personnel cost	(99 322)	(82 853)
Leases and rents	(356 758)	(27 047)
Building maintenance and utilities supplies	(18 968)	(35 913)
Communication and IT maintenance	(307 073)	(48 636)
Commissions, fees, consultancy, audit	(7 341 390)	(7 498 887)
Insurance	(116 599)	(32 556)
Car expenses and car leases	(71 386)	(143 005)
Travel expenses and representation costs	(1 014 329)	(411 405)
Advertising and marketing	(263 132)	(137 813)
Administration costs	(66 037)	(15 035)
Taxes other than income tax	(700 738)	(48 931)
Non recoverable VAT	(2 690 791)	(1 488 718)
TOTAL	(14 818 581)	(11 203 941)

15. Foreign exchange result

	Year ended 31 December
	2010	2009
In EUR
Foreign exchange result on loans with affiliated undertakings	11 093 202	1 423 466
Other foreign exchange result	1 865 125	265 817
TOTAL	12 958 327	1 689 283

16. Net gain / loss on disposal of financial assets

In 2010

The Company sold shares in some of its subsidiaries generating a net loss of EUR 13.0 million; mainly due to a EUR 12.0 million loss on the sale of 31% of its shares in Sarakina Enterprises Company Ltd, a EUR 2.2 million loss on the sale of 30% of its shares in Karousa Enterprises Company Ltd, and a gain of EUR 1.5 million related to prices adjustments on sales realized in 2007 of its investments in Hospitality companies to Hospitaly Invest S.à r.l., a joint-venture company held at 50% by the Company.

In 2009

The Company sold shares in some of its subsidiaries generating a net loss of EUR 16.6 million; mainly due to a EUR 9.1 million loss on the sale of its shares in City Gate S.r.o., a EUR 7.9 million loss on the sale of 85% of its shares in Orco Investment Kft. and a gain of EUR 0.6 million on the sale of its shares in Orco Property Management a.s..

17. Net gain / loss on financial assets at fair value through profit or loss

		Year ended 31 December
	2010	2009
In EUR
Change in carrying value of liabilities at amortised cost (1)	263 118	(19 367 170)
Change in fair value and realized result on derivative instruments (2)	7 519 221	(886 147)
Change in fair value and realized result on trading securities (3)	3 836 232	(1 712 618)
Gain (loss) on financial assets at fair value through profit or loss	11 618 571	(21 965 935)

In 2010

(1) Change in fair value of financial assets relates to a total net reversal of impairment on investment in Endurance Fund compartments for EUR 0.3 million (EUR 0.5 million reversal of impairment on Office sub-fund, and EUR 0.2 million impairment on Residential subfund)

(2) Change in fair value and realised result on derivative instruments essentially relates to movements in fair value of derivative instruments linked to bonds issued by the Company and in fair value of other derivatives (IRS, options and forwards).

(3) Change in fair value and realised result on trading securities consist mainly of release of impairment on Orco Germany S.A. shares for EUR 3.7 million

In 2009

(1) Change in fair value of financial assets relates to a total net impairment on investment in Endurance Fund compartments for EUR 19.4 million (EUR 14.7 million impairment on Office sub-fund, and EUR 4.7 million impairment on Residential sub-fund)

(2) Change in the fair value of derivative instruments essentially relates to movements in fair value of derivative instruments linked to bonds issued by the Company and in fair value of other derivatives (IRS, options and forwards).

(3) Change in the fair value of trading securities consist mainly of impairment on Orco Germany S.A."s shares and warrants; EUR 0.7 million for shares and EUR 0.9 million for warrants.

18. Other net financial results

		Year ended 31 December
	2010	2009
In EUR
Change in the carrying value of liabilities at amortised cost (1)	281 764 158	-
Other net finance charges (2)	(2 933 083)	(2 002 072)
Provision for bank guarantee (3)	(1 100 000)
Gain (loss) on other financial results	277 731 075	(2 002 072)

In 2010

• (1) Change in the carrying value of liabilities relates mainly to gains on the revaluation of bonds following the approval of the Safeguard plan. This arises from the difference between the book value of bonds on the date of approval of the Safeguard plan (19 May 2010) amounting to EUR 406.3 million plus EUR 18.4 million accrued interest and the fair value of EUR 142.9 million of the termed out). For further analysis see note 2.1 and note 11.
• (2) Other finance charges consist mainly of finance fees relating to the financial restructuring.
• (3) Due to the bankruptcy procedure of Orco Blumenska a.s. in Slovakia (project Stein), a Company"s subsidiary. In respect of the application of the Safeguard plan, the guarantee given by the Company to the bank led to the recognition of a provision (over ten years following the repayment schedule of the Safeguard plan), corresponding to the Net Present Value of the bank loan not covered by the pledge on the value of the building (valued at fair value according to the external valuer report). This provision amounts to EUR 1.1 million as at 31 December 2010.
• In 2009
• (2) Other finance charges consist mainly of finance fees relating to the financial restructuring.

19. Income taxes

Since 12 February 2009, The Management has decided the delocalization of the management of the Company. The central administration of the Company is exercised from France. From a Luxembourg tax perspective, the migration of the central administration has triggered the following tax consequences:

• The tax residence of the Company is located in France since February 12, 2009 ("Transfer Date") based on the double tax treaty concluded between France and Luxembourg ("the Treaty") ;
• Due to the fact that the Company keeps accounting and legal teams in Luxembourg, the Company has a Luxembourg permanent establishment according to article 2.3. of the Treaty ;
• The transfer of the central administration leads to an allocation of the assets and liabilities of the Company between the Luxembourg permanent establishment and the French central administration ;
• The assets and liabilities allocated to the French head office are valued at their market value as of the Transfer Date.

The tax treatment deriving from the above-mentioned facts was confirmed with the Luxembourg tax authorities on July 29, 2009 and December 15, 2009.

Based on the above, from a Luxembourg tax compliance perspective, two periods have been considered:

• From January 1, 2009 to February 12, 2009; and
• From February 13, 2009 to December 31, 2009.

Since the fiscal year 2006 and in accordance with the Tax Pooling agreed by Luxembourg Tax Authorities on January 4, 2007, the Company is fiscally consolidated with some of its Luxemburgish subsidiaries held at 100%.

As at December 31, 2010, Orco Property Group S.A. as consolidated fiscal entity in Luxembourg included the companies listed below:

• Orco Property Group S.A. (Fiscal number: 1993 2209 554);
• Orco Hotel Group S.A. (Fiscal number: 2003 2209 832) (Liquidated on December 2007);
• Orco Hotel Collection S.A. (Fiscal number: 2004 2201 228) (Liquidated on December 2007);
• Central Europe Real Estate Management S.A. (Fiscal number: 2004 2212 645) (in Liquidation since December 2009);

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes laid by the same taxation authority of either the taxable entity or different taxable entities where there is the intention to settle the balances on a net basis.

As at 31 December 2010, the Company has not recognized any deferred tax assets in one of its taxable entities.

Tax rates applicable to the taxable entities of the Company are detailed below:

		Income Tax Rates	Deferred Tax rates
	2010	2009	2010	2009
France	33,33%	33,33%	33,33%	33,33%
Luxembourg	30,84%	30,84%	28,80%	30,84%

The income tax calculation of the Company is detailed below:

	December 2010	December 2009
In KEUR
Profit /(Loss) before tax	167 538	-238 936
Tax effects of:
Unrecognised loss carry forward	-167 538	238 936
Tax benefit / charge	0	0

20. Earnings per share

	31 December	31 December
	2010	2009
At the beginning of the period	10 934 765	10 818 000
Shares issued	10 943 866	10 943 866
Treasury shares	-9 101	-125 866
Weighted average movements	2 203 194	-86 039
Issue of new shares	2 216 923	-
Treasury shares	-13 729	-86 039
Weighted average outstanding shares for the
purpose of calculating the basic earnings per share	13 137 959	10 731 961
Dilutive potential ordinary shares	1 086 956	-
Convertible bond	1 086 956	-
Weighted average outstanding shares for the
purpose of calculating the diluted earnings per share	14 224 915	10 731 961
Net profit/(loss) attributable to owners of the Company (in KEUR)	167 538	-238 936
Effect of assumed conversions / exercises	-91 179	-
Convertible bond	-91 179	-
Net profit /(loss) attributable to owners of the Company
after assumed conversions / exercises (in KEUR)	76 359	-238 936
Basic earnings in EUR per share	12,75	-22,26
Diluted earnings in EUR per share	5,37	-22,26

Basic earnings per share is calculated by dividing the profit loss attributable to the owners of the Company by the weighted average number of ordinary shares in issue during the year, excluding ordinary shares purchased by the Company and held as treasury shares.

Diluted earnings per share is calculated adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares.

In December 2009, 833,084 Warrants have been attributed to Executive board members (see note 24 – Related Parties).

As a result of the Safeguard procedure, all debts of the Company were frozen until the approval of the Safeguard plan. As a result, the conversion of the convertible bond was suspended and was not taken into account in 2009 in the calculation of the diluted earning per share.

The warrants 2012 and 2014 were not taken into account in the EPS calculation as the conversion of the warrants had an antidilutive impact in 2009 and 2010.

21. Equity

Share capital

	Number of shares	Share capital	Share premium
In EUR
Balance at 1 January 2009	10 943 866	44 869 851	400 524 345
Balance at 31 December 2009	10 943 866	44 869 851	400 524 345
Capital increase	3 110 000	12 751 000	3 463 900
Balance at 31 December 2010	14 053 866	57 620 851	403 988 245

All the shares of the Company have no par value and are fully paid. Each share is entitled in the profits and corporate capital to a prorate portion of the percentage of the corporate capital it represents, as well as to a voting right and representation at the time of General Meeting, the whole in accordance with statutory and legal provisions.

2010

On 6 April 2010, a capital increase of 1,090,000 new shares at EUR 5.61 per share, out of which EUR 4.1 per share has been allocated to share capital account of the Company and EUR 1.51 to the share premium account of the Company, has been successfully issued and fully paid.

On 8 April 2010, a capital increase of 1,420,000 new shares at EUR 5.00 per share, out of which EUR 4.1 per share has been allocated to share capital account of the Company and EUR 0.90 to the share premium account of the Company, has been successfully issued and fully paid.

On 14 April 2010, a capital increase of 600,000 new shares at EUR 5.00 per share, out of which EUR 4.1 per share has been allocated to share capital account of the Company and EUR 0.90 to the share premium account of the Company, has been successfully issued and fully paid.

The new ordinary shares issued during the 3 capital increases carry the same rights (including voting rights) as the existing shares.

The prospectus prepared by the Company was approved on 24 January 2011 by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg so that the new shares from the second and third capital increases are listed and admitted for trading on Euronext Paris, the Prague Stock Exchange, the Warsaw Stock Exchange and the Budapest Stock Exchange.

As at 31 December 2010, the Company holds 89,455 treasury shares, 1,472 warrants 2014 and 546 warrants 2012.

2009

No movement occurred in 2009 on share capital or share premium.

Authorised capital not issued

The Extraordinary Shareholders" Meeting held on 8 July 2008 renewed the authorisation granted by shareholders to the Board of Directors on 18 May 2000, in accordance with article 32-3 (5) of Luxembourg corporate law and in addition enhanced the limit of the authorised capital. The Board of Directors was granted full powers to proceed with the capital increases within the revised authorised capital of EUR 300,000,001.20 under the terms and conditions it will set, with the option of eliminating or limiting the shareholders" preferential subscription rights as to the issuance of new shares within the authorised capital.

The Board of Directors has been authorised and empowered to carry out capital increases, in a single operation or in successive tranches, through the issuance of new shares paid up in cash, capital contributions in kind, transformation of trade receivables, conversion of convertible bonds into shares or, upon approval of the Annual General Shareholders" Meeting, through the capitalisation of earnings or reserves, as well as to set the time and place for the launching of one or a succession of issues, the issuance price, terms and conditions of subscription and payment of new shares. This authorisation is valid for a five-year period ending on 8 July 2013.

A total of EUR 57,620,850.60 has been used to date under this authorisation.

As such, the Board of Directors still has a potential of EUR 242,379,150.60 at its disposal. Considering that all new shares are issued at the par value price of EUR 4.10, a potential total of 59,116,866 new shares may still be created.

New amendments on warrants

Following the execution of the "Safeguard plan" and the capital increases over the period, the following amendments have been adopted:

Warrants 2012 (ISIN code : LU0234878881):

On 22 April 2010, the general meeting of the holders of the warrants 2012 extended the exercise period of the warrants from 18 November 2012 up to 31 December 2019. The exercise price and the exercise ratio remain the same (see note 11.3)

Warrants 2014 (ISIN code : XS0290764728):

On 25 March 2010, the general meeting of the holders of the warrants 2014 extended the exercised period of the warrants until 31 December 2019 (see note 11.6)

The exercise ratio has been adjusted following the capital increases. Each warrant 2014 shall entitle the holder to acquire 1.73 existing shares and/or subscribe to 1.73 new shares at the exercise price of EUR 11.20 to be paid in cash.

As at 31 December 2010, no warrants have been exercised (none in 2009).

Convertible bonds

See note 11.4.

Repayable subscription warrants

See notes 11.3 and 11.6.

Employee stock options

No new stock option plan has been granted in 2010 and 2009.

On 3 March 2006, a stock option plan was granted to employees under the following conditions:

Exercise price:	EUR 75.6 per share
Exercise period:	from 3 March 2007 until 3 March 2012
Total number of options:	350,000

In accordance with IFRS 2 share-based payments, the total theoretical and non-cash cost of EUR 9.1 million has been estimated and amortized in the income statement under the Employee benefit caption over the one year vesting period. This fair value was determined using the Black-Scholes valuation model. The significant input into the valuation model were share price of EUR 72.15 at grant date, exercise price as stated above, risk-free interest rate Euribor.

Movements in the number of share options:

	2010		2009
	Average exercice price in EUR	Number of options	Average exercice price in EUR	Number of options
Outstanding at the beginning of the year	75.60	60,000	75.60	63,000
Granted	-	-	-	-
Exercised	-	-	-	-
Cancelled	-	-	-	-3,000
Outstanding at the end of the year	75.60	60,000	75.60	60,000

Dividends per share

The Board of Directors has decided not to propose any dividend payment at the Annual General Meeting of Orco Property Group S.A. for the years 2010 and 2009.

PACEO

On 12 April 2006, Orco Property Group S.A. and Société Générale in Paris ("SG") have arranged a new Step-up Equity Subscription. It allows the Company to issue a maximum of 1 million new shares subscribed on the demand of Orco Property Group S.A. by SG. All subscriptions will be at an issue price of 96% of the share price at the time of execution. As at 31 December 2006, the Company has issued 450,000 new shares for a total amount of EUR 43.8 million.

In 2007, no shares have been issued under the existing PACEO program. As at 31 December 2007, the program was still open for the issue of 550,000 new shares until 12 April 2008.

On 13 August 2008 the Company has concluded with Société Générale a third PACEO in the overall limit of 2,000,000 new shares over a period of 24 months (maturity date of 13 August 2010) through the issuance of unlisted share subscription rights (Bon d"Emission d"Actions or BEA). The exercise of each BEA obliges Société Générale to subscribe to one of Orco Property Group"s common shares.

As at 31 December 2010 and 2009, no BEA has been exercised and as a result no new shares have been issued.

22. Contingencies

As at the date of publication of the stand alone financial statements, the Company has no litigation that would lead to any material contingent liability.

The Company has given guarantee in the ordinary course of business to its affiliated undertakings to cover bank loans financing their real estate assets.

As of 31 December 2010:

in EUR million
Guarantees required by banks	354,8
Liabilities	2,9

Guarantees required by banks

As of December 2010 the total amount of security, validated in the Plan de Sauvegarde by the "juge commissaire" is EUR 354.8 million.

Out of this amount, EUR 4.5 million has been called in 2010.

The amount of security recognized increased significantly compared to the amount of EUR 153.9 million recorded as of 31 December 2009. As of 31 December 2009, only the amount accepted by the creditor representative during the claim review process as a security was recorded. The decision executed by the 'juge commisssaire" confirmed during the year 2010, the receivability of some others securities and receivables challenged before hand by the creditor representative.

Securities for an amount of EUR 24.3 million relating to assets sold during the year 2010 were cancelled during the year 2010 and were written off from the total amount as of 31 December 2010.

Liabilities

As of 31 December 2010, the Company recognized a total amount of liabilities of EUR 2.9 million.

Out of this amount EUR 1.1 million is to be paid, EUR 0.7 Million are pending. Argument relating to a liability of EUR 1.1 million out of the total amount of EUR 2.9 million has been solved with decision of the "juge commissaire" and the liability will not be due anymore

Affilidated undertakings

As of 31 December 2010, guarantees granted to affiliated undertakings amount to EUR 151.8 million.This total amount remain unchanged compared to 31 December 2009.

Out of the total amount of EUR 151.8 million, EUR 1,7 million is a guarantee relating to the project Jeremiasova. The asset is sold and the cancellation of the potential liability is pending.

As of 31 December 2009:

in EUR million
Guarantees required by banks	153.9
Liabilities	0.7

Guarantees required by banks

The total amount of security declared to the creditor representative as of 31 December 2009 is EUR 163.3 million.

As of 31 December 2009, the Company recognized a total security amount required by banks of EUR 153.9 million. Those amounts have been accepted by the creditor representative during the claim process done in cooperation with the Company.

Liabilities

As of December 2009, the Company recognized a total amount of liabilities on behalf of its sublisdiaries of EUR 0.7 million. This amount is pending and not due.

Affilidated undertakings

As of 31 December 2009, guarantees granted to affiliated undertakings amount to EUR 151.8 million. This amount is splitted into 23 lines with an average amount of EUR 6.6 million

Each of the guarantees granted to affiliated undertakings were confirmed by the Company's management from the very beginnning of the safeguard process in 2009.

The amount of EUR 151.8 million is a sum of guarantees. It is a maximum potential amount that is not currently requiring any payments.

The receivability if these liabilities has been to be judged by the court monitoring the safeguard plan procedure and decisions are now published.

23. Capital and other commitments

Capital commitments

• Orco Property Group S.A. entered into a Subscription Agreement with the Endurance Real Estate Fund for Central Europe. The Company subscribed to two sub-funds on the three existing sub-funds. As at December 2010, the remaining balances to be called amount to:

• EUR 13.5 million out of EUR 21.9 million subscribed for the residential sub-fund (EUR 13.5 million in 2009);

• EUR 3.4 million out of EUR 27.0 million subscribed for the office sub-fund (EUR 3.4. million in 2009).

Other commitments

In a decision taken on 3 March 2006, the Board of Directors granted to some members of the management of the Company a termination indemnity payment for a total amount of EUR 34 million (as at 31 December 2010 and 2009: remaining amount of EUR 16 million). This indemnity would become payable by the Company to the relevant management member only in case of change of control of the Company and in case the relationship between the Company and the management member is terminated by either party within a period of 6 months after the change of control.

24. Related party transactions

Transactions with key management personnel

(a) Remuneration of key management personnel

The members of the Board of Directors of the Company and of the Executive Committee are considered as the key management personnel of the Company. Until February 2009, the Executive Committee was made of 20 people. After the restructuring of the Company management and the alignment of its structure with the business lines, the Executive Committee has been reduced to 6 executive managers.

In 2010, total compensation given as short term employee benefit to the members of the Executive Committee amounted to EUR 1.8 Million (EUR 4.5 Million in 2009, out of which EUR 2.8 Million related to former executive committee members with EUR 0.6 Million as severance payment and EUR 0.2 Million to be paid at the termination of the contract of current executive board members). As at 31 December 2010, the cumulated balance to be paid at the termination of the contract of current executive board members amounts to EUR 0.4 Million (EUR 0.2 Million in 2009).

In November 2009, the Board of Directors of the Company approved the remuneration plan for Board, Committee and General Meeting attendances that applies to all Board members except the management who is paid by the Company. A compensation of EUR 1,000 is granted to each Board and Committee member for all physical attendance. A compensation of EUR 1,500 is granted for the attendance as president to all Committee meetings. EUR 4,500 is granted to compensate the President presiding an ordinary and extraordinary general meeting of shareholders. Such compensation has been retroactively applied since January 2009. In 2010 the Board and Committees attendance compensation amount of EUR 96,500 (EUR 50,500 in 2009), including General Meetings presidency compensations. Pursuant to the Company"s bylaws, each Board member must hold at least one share of the Company. As such, one share has been granted for free to each Board member that was not holding the required share.

Based on the Remuneration and related parties Committee dated 17 November 2009 and following a decision of the Board of Directors of the Company taken on 18 November 2009, the Company attributed in December 2009 an aggregate amount of 833,084 warrants 2014 (ISIN: XS0290764728) issued by the Company and an aggregate amount of 1,598,000 warrants (ISIN: XS0302626899) issued by its subsidiary Orco Germany S.A. as an incentive remuneration to the three executive Board Members for a total amount of EUR 990 thousand.

In a decision taken in 2006, the Board of Directors of the Company granted to some members of the management of the Company a termination indemnity payment for a total amount of EUR 34 Million. As a result of the reduction of the number of persons covered by this termination agreement as at 31 December 2010, the potential termination indemnity payment amounted to EUR 16 Million (EUR 16 Million as at 31 December 2009). This indemnity would become payable by the Company to the relevant management member only in case of change of control of the Company and in case the relationship between the Company and the management member is terminated by either party within a period of 6 months after the change of control.

(b) Loans and advances with key management personnel

On 4 December 2008, the Company granted a seller"s financing of EUR 1.4 Million (which was fully impaired as of 31 December 2009 as a result of the termination of the consulting contract with that company) to Vignette Investissements S.A., a French company managed by Keith Lindsay, against transferring 10% of the shares of MMR Management s.r.o., a limited liability company, incorporated under Czech laws and a wholly owned subsidiary of the Company to Vignette Investissements S.A.. This advance was granted for a period of 7 years ending on 31 December 2015. Vignette Investissements S.A. and the Company agreed to unwind the transaction following termination of cooperation. As such, 10% of the shares of MMR Management s.r.o. were returned by Vignette Investissements S.A. to the Company, effective 16 December 2010.

In February 2007, the Company has granted a loan of EUR 216,068 to OTT & CO S.A.. This loan had a maturity date on 1st March 2008 and an interest rate of 9% per year payable at the repayment date (the "Company Receivable").

In May 2008, the Company granted a loan of USD 825,000 to Urso Verde S.A., a Luxembourg subsidiary of OTT & CO S.A. This loan had a final repayment date as of 15 May 2009 and an interest rate of 10% per year payable at repayment date. On 30 April 2009, Urso Verde S.A. pledged 90,660 Company shares to the benefit of the Company in order to secure the repayment of the loan. The pledged shares have been called in June 2009 by the Company. In August 2009, 90,000 of the shares were sold for an aggregate amount of EUR 812,250 leaving a surplus of EUR 132,298 compared to the amount of loan to be repaid that Urso Verde S.A, requested to be returned in the form of shares, which has been settled as described in the next paragraph. The unsold 660 Company shares were transferred back to OTT & Co. S.A. pursuant to an instruction of Urso Verde S.A..

On 24 March 2010, Urso Verde S.A., OTT & CO S.A. and the Company have agreed to restructure their debts described in the previous two paragraphs. Pursuant to the agreement dated 24 March 2010, Urso Verde S.A. assigned its receivable against the Company, amounting to a total of EUR 138,985 (EUR 132,298, plus interest of EUR 6,687 as of 24 March 2010, being surplus left after sale of shares, "Urso Verde Receivable"), to OTT & CO S.A. The Company and OTT & CO S.A. agreed to offset the Urso Verde Receivable amounting to EUR 138,985 with the Company Receivable, amounting to EUR 276,058 (EUR 216,068 principal, plus interest accrued of EUR 59,990) as of 24 March 2010, leaving EUR 137,073, being the outstanding principal of the Company Receivable as of this date.

On 30 November 2010, Orco Charter d.o.o., a wholly owned subsidiary of OTT & CO S.A., OTT & CO S.A. and the Company have agreed to further restructure their debts. Orco Charter, was owed by Blue Yachts, a 70% subsidiary of Suncani Hvar, itself a subsidiary of the Company, an amount of EUR 180,151. As of that date, Orco Charter was also owed by Orco Adriatic d.o.o., a fully owned subsidiary of the Company, an amount of EUR 618. Orco Charter assigned to OTT & CO S.A. its receivables against Blue Yachts and Orco Adriatic (jointly, the "Orco Charter Receivables"). OTT & CO S.A. further assigned the Orco Charter Receivables to the Company for a consideration of EUR 180,769 (becoming the "Ott & Co Receivable") to be offset with the Company Receivable (described above) against OTT & CO S.A. amounting to EUR 145,556, including accrued interests. As such, the Company Receivable against OTT & CO S.A. pursuant to the loan of 22 February 2007 was settled and fully repaid as of the date of agreement. As at 31 December 2010, after restructuring and settlements described above, the Company has a receivable amounting to EUR 180,315 against Blue Yachts and a receivable amounting to EUR 618 against Orco Charter.

On 16 February 2007, the Company has granted a loan of EUR 61,732 to Steven Davis, one former executive of the Company with maturity date on 1 March 2008. In 2009, the loan has been fully impaired as a result of the dispute on the termination of the employment contract of Steven Davis. Litigation is pending in front of Luxembourg court.

(c) Other transactions with key management personnel

The Company has an investment in NOVY Fund, a related party of some former members of the key management personnel. The cost of such investment amounts to EUR 1.1 Million as at 31 December 2010 (EUR 1.4 Million as at 31 December 2009) and its fair value amounts to EUR 0.2 Million as at 31 December 2010 (EUR 0.3 Million as at 31 December 2009).

Transactions with the Endurance Real Estate Fund

The Company is the sponsor of a Luxembourg regulated closed end umbrella investment fund dedicated to qualified investors, the Endurance Real Estate Fund. This fund has opted for the form of a "Fonds Commun de Placement". The Company is the shareholder of the management company of the Fund and has also invested in the two sub-funds existing as at 31 December 2010. As at 31 December 2010, the Company"s subscription to the office I and residential sub-funds represent respectively 16.16% and 5.79% of the total subscription respectively (in 2009, 16.16% and 7.98% respectively).

The Company provided a subordinated bridge loan to BB C – Building E, k.s., a Czech subsidiary of the Endurance Fund, pursuant to the loan agreement dated 15 October 2010. The loan was used to cover an extraordinary payment required by the financing bank. The Company"s loan of EUR 700,000 has a final repayment date of 26 August, 2013 and bears an annual interest of 30%.

There are other various transactions between the Company and Endurance Fund companies. These transactions resulted in the recognition of EUR 0.1 Million revenue (EUR 0.2 Million in 2009) and EUR 0.1 Million expenses (EUR 0.5 Million in 2009). They also resulted as at 31 December 2010 in a net payable of EUR 0.1 Million (a net payable of EUR 0.4 Million as at 31 December 2009).

Employee stock options

See note 21.

Transactions with affiliated undertakings

o Financial transactions

The Company has global loan agreement with maturity date 31 December 2020 and bearing 8% interest with most of its affiliated undertakings. These loans are all fully detailed (principal amount, accrued interest, impairments, interest rate, interest expenses or income, original currency and maturity) in notes related to loans to affiliated undertakings and to loans froms affiliated underatakings (see note 9 & 12).

The Company also invoiced guarantee fees on bank loans to some of Orco Germany S.A."s subsidiary for which the Company is the guarantor of the borrowed amount. The Company invoiced a total of EUR 270,788 for the year 2010 (2009: EUR 427,749) corresponding to 1% of the amount guaranteed.

o Operational revenues

Services fees invoiced by the Company are detailed below:

• Orco Germany S.A. : EUR 300,000 for the year 2010 (none in 2009);
• Orco Prague S.A. : EUR 5,057,102 for the year 2010 (none in 2009);
• Endurance Hospitality Finance S. à r.l. : EUR 627,305 for the year 2010 (2009: EUR 531,193);
• MMR Management S.r.o. : EUR 901,876 for the year 2010 (none in 2009);
• Endurance Advisory Company, S.A. : EUR 60,000 for the year 2010 (none in 2009);
• Mamaison Management S.r.o.: EUR 55,002 for the year 2010 (none in 2009).

The Company has also signed sub-leasing agreements with all the companies which have their registered address at the Company address (including all subsidiaries).

o Operational expenses

Services fees invoiced to the Company by its subsidiaries are detailed below:

• Vinohrady S. à r.l. : EUR 1,350,000 for the year 2010 (2009: EUR 5,700);
• Orco Prague S.A. : EUR 46,907 for the year 2010 (none in 2009).

The Company has its registered address at Capellen in a building owned by one of its fully owned subsidiary, Capellen Invest S.A., related rental expenses are detailed below:

• Rental fees: EUR 219,780 for the year 2010 (none in 2009);
• Tenants charges: EUR 50,901 for the year 2010 (none in 2009).

25. Events after balance sheet date

a) Capital increases by 3.1 Million new shares for a total equity amount of EUR 16.2 Million and their legal challenge

In April 2010 the Company completed three different capital increases for a total equity amount of EUR 16.2 Million.

These capital increases were legally challenged by certain shareholders. First, three of the Company"s minority shareholders acting in concert, Millenius Investments S.A., Clannathone Stern S.A. and Bugle Investments Ltd (collectively the "Applicants") introduced claims against the Company and its new shareholders with the aim to cancel the capital increases.

On 24 January 2011, the Commission de Surveillance du Secteur Financier ("CSSF") approved the prospectus for the new shares issued in the second and third capital increases. The prospectus has been duly passported with the French Autorité des marchés financiers on 25 January 2011. Consequently, the Company applied for listing the corresponding shares for trading on the regulated markets of NYSE Euronext in Paris, the Prague Stock Exchange, the Warsaw Stock Exchange and the Budapest Stock Exchange. As of the publication of this report, all four above-mentioned stock exchanges admitted the 2,020,000 ordinary shares of the Company to.

On 22 February 2011 the Company announced that a settlement agreement was reached by Orco Property Group and the Applicants. As a result, the parties have agreed to end the legal procedures initiated by Millenius, Fideicom, Clannathone and Bugle which aimed to cancel the resolutions adopted by the General Assembly of 8 July, 2008 and the capital increases of 6, 8 and 14 April, 2010. Millenius, Fideicom, Clannathone and Bugle have formally and irrevocably agreed to withdraw from all legal proceedings and abandon the positions they took during the course of these proceedings. Orco Property Group has accepted their withdrawal and abandonment without reservation.

b) Dispute with Croatian Privatization Fund ("CPF")

In 2005, the Company entered into a Shareholders" Agreement with the Croatian Privatization Fund ("CPF") regarding the formerly state owned company Suncani Hvar dd.

In sharp contrast to the Group"s financial (approximately EUR 60 Million) and managerial commitment, the CPF repeatedly breached many of its contractual obligations. Moreover, on 12 July 2010, slightly before the expiration date of the agreement, the CPF sent a formal letter improperly alleging that the Company breached the terms of the agreement and that as such, the CPF was entitled to unilaterally terminate it.

On 6 January 2011, the Company filed a Notice of Dispute with the Croatian Prime Minister"s office as a first step of an international arbitration pursuant to the Belgo/Luxembourg-Croatia and France-Croatia bilateral treaties.

An agreement has been finalized in March 2011 with the CPF (Croatian state privatization fund holding 32% of the shares of Suncanni Hvar d.d.). This agreement is a first step aiming at putting an end to the different shareholders disputes and assuring long term financing of the business.

The parties have agreed to convene a General Meeting of Shareholders in April 2011 in order to reduce the indebtedness of the Company by HRK 41.21 Million by swapping parts of the existing shareholders loans into the Company's equity and to release of a total amount of HRK 22.2 Million liability in shareholder loans interest, which the two major shareholders have agreed to write-off. In addition, in order to resolve shareholders' disputes from the past, an independent body "Expert Group" will be established. At the same time, the CPF has committed to tackle all unresolved ownership disputes within the next 12 months.

Furthermore, a framework for the joint assistance of the Company has been agreed, ensuring the continuation of its business, which sees the CPF matching Orco's shareholder loan by providing a new loan to the Company in the amount of 19.9 Million HRK.