ANNUAL REPORT 2014 - Edmond de Rothschild Group · 2019-05-11 · ANNUAL REPORT 2014 EDMOND DE ROTHSCHILD (EUROPE) 6 MESSAGE FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS Global growth

ANNUAL REPORT 2014EDMOND DE ROTHSCHILD (EUROPE)

Edmond de Rothschild (Europe) Public Limited Company - 20, boulevard Emmanuel Servais - L-2535 Luxembourg - Postal Address B.P. 474 L-2014 Luxembourg - Tel. : (+352) 24 88 1 - Fax : (+352) 24 88 82 22 - Swift PRIBLULL - R.C. LUX B 19194 - TVA LU 121687 24 - www.edmond-de-rothschild.eu

ANNUAL REPORT 2014

ANNUAL REPORT 2014 – EDMOND DE ROTHSCHILD (EUROPE)

06Message from the Chairman

of the Board of Directors

08Management bodies

12Economic and stock market

environment in 2014

17Our development

18Comments on our annual accounts

20Risk management objectives

and strategy

20Events occurring after

the close of the year

20Outlook

21Approval of the annual accounts and recommended distribution

of the available balance

21Management and personnel

CONTENTS

01Edmond de Rothschild (Europe)

02Board of Directors’ Report

24Auditor’s Report

26Balance sheet

as at 31 December 2014

28Off-balance sheet items as at 31 December 2014

29Profit and Loss Account for the year

ended 31 December 2014

32Notes to the annual accounts


03Annual accounts 2014


05Addresses

CONTENTS

56Addresses

EDMOND DE ROTHSCHILD (EUROPE)

06Message from the Chairman

of the Board of Directors

08Management Bodies


6

MESSAGE FROM THE CHAIRMANOF THE BOARD OF DIRECTORS

Global growth proved disappointing in 2014 contrary to economic projections, particularly in emerging markets. At just over 3%, it was on a level with the two previous years – demonstrating once again that the road to recov-ery since the outbreak of the financial crisis in September 2008 is a long one.

The biggest event last year was ultimately the massive drop in oil prices. On a geopolitical level, this drop had the immediate effect of rebalancing growth prospects between developed economies and emerging econo-mies – a change that is more structural than it appears. Many large emerging countries suffer from structural imbalances that affect their development and undermine stability. The drop in oil prices has accelerated this trend. The situation has certainly improved for importing coun-tries due to lower energy bills, which allow better control of production costs; however, these countries have also suffered from the growing trend toward deflation.

Finally, 2014 will be remembered as the year that China became the largest economic power in the world. Of

course this is not a surprise, but the speed with which it happened is remarkable.

Faced with these major developments, we have chosen to create a more coherent Group and develop our spirit of conquest – both in areas where we have operated for many years and in new emerging markets.

And now, for once, I would like to introduce our annual report by focusing on the future rather than reviewing the past.

In early 2015, I made the decision to further consolidate my family’s position at the head of the Edmond de Roth-schild group. In January, the Board of Directors of our Group’s holding company appointed my wife, Ariane, as Chairwoman of the Group Executive Committee, reflecting my desire for our family to play a more direct role in overseeing the Group’s business. For my part, I will of course remain Chairman of our Group’s Board of Directors, and I will actively support my wife and the Group’s teams.

7

Benjamin de Rothschild

MESSAGE FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS

Our decision was the result of careful consideration.

Faced with an uncertain economic environment, increasingly stringent regulations and fierce competi-tion, my family’s commitment to our Group is deeper than ever before. In the last three years, we have made great progress towards melding our banks and financial services into a coherent Group, driven by a common vision, common goals and progressively common systems.

The challenge we face today is to move beyond organisational factors so that we can return our Group’s focus to its spirit of conquest. The year 2015 marks a new milestone in the history of our Group. Our goal is to reconcile what may seem to be two opposing forces: our passion for entrepreneurship and an environment that places a strong emphasis on controlling risk. By placing ourselves on the front lines of executive management, we as a family are demonstrating our commitment to making ourselves fully accountable for the next phase of our Group’s development.

Finally, I would like to add that for the first time in the history of the Rothschild family, the Executive Committee is chaired by a woman. Few financial institutions are or have been managed by a woman. I am delighted that Ariane accepted my proposal.

In 2014, the Group’s business remained buoyant despite a context of major change. I would like to take this oppor-tunity to thank every one of the Group’s employees, whose skills are invaluable. I know I can count on our employees to help build the robust and innovative group we strive to be and to position Edmond de Roth schild as a leader in the global financial sector.


8

Board of Directors

ChairmanBaron Benjamin de Rothschild

Vice-ChairwomanBaroness Benjamin de Rothschild

DirectorsMarc AmbroisienChristophe de Backer 1Didier Bottge 1Emmanuel FievetManuel Leuthold 1Yves RepiquetE. Trevor Salathé 1Daniel Yves TrèvesChristian Varin

Internal Audit

Stéphanie Van Tieghem

Independent Auditors

PricewaterhouseCoopers S.à.r.l.

MANAGEMENT BODIESEDMOND DE ROTHSCHILD (EUROPE)

1 members of the Audit Committee2 directors approved by the supervisory authority

9

Executive Committee 2

Chairman Marc Ambroisien

Vice-ChairmenMarc GrabowskiFranck SarrazinJean-Marc ThomasPierre-Marie Valenne

Members of the Extended Executive Committee (non- Executive Committee members)Philippe AnstettOmbeline de Clermont-TonnerrePascal DelleElise LethuillierRobin MarcPhilippe PostalAnne PrévostCatherine Roux-SevelleJean-Charles SchiltzMaxime Weissen

General Secretary

Marc Grabowski

Foreign Branches

Branches

Belgium / Brussels

General ManagerMarc Moles le Bailly

Spain / Madrid

General ManagerAntonio Salgado Barahona

Portugal / Lisbon

General ManagerJosé-Luis de Vasconcelos e Sousa

Representative Office

Israel / Tel Aviv

Permanent RepresentativeAriel Seidman

MANAGEMENT BODIES

BOARD OF DIRECTORS’ REPORT

12Economic and stock market

environment in 2014

17Our development

18Comments on our annual accounts

20Risk management objectives

and strategy

20Events occurring after

the close of the year

20Outlook

21Approval of the annual accounts and recommended distribution

of the available balance

21Management and personnel


12

Economic and stock market environment in 2014

The year 2014 was marked by an uneven recovery of the world economy, which remained in a period of readjustment resulting from the after-effects of the international finan-cial crisis. Global growth increased slightly in the second semester after a weaker than expected first semester, reach-ing an annual growth rate of 3.3%, which conceals significant differences between major countries and economic zones.

After an increase of 1.9% in 2013, the American economy increased by nearly 2.4% in 2014. Although affected by extreme weather conditions in the first semester, economic activity improved in the second semester, primarily due to a less restrictive budgetary policy and overall improvement of the job market situation. In fact, the monthly job creation rates never dropped below 200,000, without resulting in increases in wages or prices.

Despite the positive impact of the decrease in oil prices and the depreciation of the euro, the economic rate of the Eurozone (0.8%) was weaker than expected and once again concealed significant differences between the countries in the zone. Although the beginnings of an economic recovery were noted in Germany (1.5%), in Spain (1.4%), and in Portu-gal (1%), hopes were dashed in France and Italy, with growth rates of 0.4% and -0.4%, respectively.

As for the Japanese economy, it saw a significant slow-down in its growth rate to 0.1% in 2014, compared to 1.6% in 2013. Although strong at the beginning of the year, activities sig-nificantly slowed in the second quarter as a result of a decline in household consumption due to the increase in VAT rate. The increase of the VAT in April had a significantly negative impact on the economic recovery, which declined, pushing Japan into a recession in the third quarter. Faced with this situation, the government decided to delay the next increase

in VAT to April 2017. In addition, the Prime Minister, Shinzo Abe, called for early elections to have a free hand to give a new impetus to governmental reform programmes.

The growth rate in developing countries decreased slightly to 4.4% in 2014, compared to 4.7% in 2013. The economic slowdown noted in China (from 7.8% to 7.4%) was related to the reversal of its real estate market as a result of the tighten-ing of credit conditions in 2013 and in early 2014. In Latin America, growth fell to 1.2% in 2014, compared to 2.8% in 2013, due to the pronounced decrease in exports. Finally, the Russian economy slowed down markedly to 0.6% in 2014 (1.3% in 2013), impacted by the drop in oil prices and inter-national economic sanctions due to the conflict in Ukraine. Faced with these external pressures, the ruble collapsed. After initially taking action in the foreign exchange mar-kets by injecting massive quantities of exchange reserves and increasing key rates, the Central Bank of Russia finally resigned itself to allowing market forces to re-establish the equilibrium level of the ruble, which ultimately decreased by 50% compared to the American dollar.

In terms of monetary policy, the year was illustrated by significant differences between countries. While 11 central banks, including those of India and Brazil, increased their reference interest rates, twelve central banks reduced them, including the European Central Bank. While the FED put an end to its third quantitative easing programme in October, the ECB and the Bank of Japan had to address deflationary expectations. In June and September, an important series of measures was put in place by the ECB, including a new decrease in the key rate to 0.05% and the deposit rate to -0.2%, in addition to a private sector asset purchase pro-gramme. These measures were not enough to reverse trends, and at the end of the year, the ECB announced its intention to institute a quantitative easing program in early 2015. As for the Central Bank of Japan, asset purchase measures were also put in place at the end of October.

BOARD OF DIRECTORS’ REPORTTO THE GENERAL MEETING OF SHAREHOLDERS

13


Interest rates of the Main Central Banks (in percentages)

Eurozone United Kingdom Japan United States

Source: Thomson Reuters Datastream, Edmond de Rothschild (Europe)

2002 2004 2006 2008 2010 2012 2014

0

2

5

6

1

4

3

7

8

2000


14

S&P 500 (+11.39%) Shanghai Composite (+52.87%) Euro Stoxx 600 (+4.35%) Russia RTS (-45.19%) Nikkei 225 (+7.12%)


Main International Stock Market Indices (Performance 2014 – Reset to 0 as at 01/01/2014)

01. 14 02. 14 03. 14 04. 14 05. 14 06. 14 07. 14 08. 14 09. 14 10. 14 11. 14 12. 14

-60

-20

20

40

-40

0

60

15

In 2014, the equity markets as a whole were less favourable than in 2013. Against a backdrop of geopolitical tensions, the drop in oil prices and the weak international economic conditions, the international stock market index MSCI World showed an increase of only 2.9% in USD.

Of the main equity markets in the developed countries, the best performance was once again found on the American market, due to the sustained growth of its GDP and com-pany profits. The stock market indices NASDAQ 100 and S&P 500 advanced in 2014 by nearly 18% and 12%, respec-tively. The second best performance goes to the Japanese equity market, with the NIKKEI 225 index posting a per-formance of more than 7%, which is still a sharp decline compared to 2013 (57%), however. The performance of the Eurozone stock markets, although widely disparate, emerged as losers with a EURO STOXX 600 advancing by 4.5%, a DAX 30 index finishing the year with a slight increase to 2.65% and a CAC 40 in the negative at -0.5% (18% in 2013). These disappointing results on the European equity market were due in large part to the weak economic recovery of the Eurozone, which have a negative impact on investor confidence. On the emerging markets side, the main stock market indices were highly diverse, with the exceptional performance of the Shanghai stock market of 53%, which took off in November following its merger with the Hong Kong stock market. As for Russia, its main stock market index, the RTS, suffered a severe drop, ending the year at -45% due to the economic sanctions put in place by western countries as a result of the conflict with Ukraine, but also due to the drop in oil prices resulting in an increase in supply and a decrease in international demand (due to the slowdown of the international economy).

2014 was a generally satisfactory year for the bond market. In the Eurozone, the 10-year financing rates for the “core” countries have never been this low. In fact, the 10-year German Bund rate reached an all-time low of 0.54% as at 30 December 2014. The increasing probability of the ECB insti-tuting a quantitative easing programme has brought down the rates of return for bonds issued by sovereign states in the zone. The 10-year rates of the American Treasury also dropped to very low levels (2%) at the end of 2014. Despite the sustained recovery of the American economy, the rise in the key rate of the FED remains uncertain, given the drop in oil prices and its potential impact on inflation.

On the raw materials and exchange markets, 2014 was char-acterized by the drop in oil prices as well as depreciation of the EUR/USD. After starting 2014 at around USD 100, the per-barrel price of oil finished the year at nearly USD 50, for two main reasons. First, there was an oil supply shock at the international level, with the dramatic growth in the exploi-tation of shale in the United States. This was accompanied by a downturn in demand, reflecting the poor growth of the international economy.

As for the depreciation of the EUR/USD, it is explained by differences in the monetary policy decisions made by central banks, such as the rate decreases of the ECB and the end of the quantitative easing by the FED, as well as the negative impact of economic surprises on the European economy.



16

Oil Price (USD per barrel)

Brent WTI


06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01

2013 2014

40

60

90

100

50

80

70

110

120

17

Our development

2014 was marked by an acceleration in the transformation of the Group and the Bank. In addition to the symbol represented by the change in company name, several major projects were conducted.

In order to create the foundation for the future development of our activities, the Group has reviewed its organisational strategy in depth, as well as its operational models. Thus, the Bank has signed an outsourcing agreement for the value chain of the depositary functions and central administration of investment funds with an industry leader: Caceis Bank Luxembourg. In this context, 114 employees of the Bank were transferred to our partner. This association is very new in the financial market and will enable the Bank to bring its attention exclusively to the high-value added services on which the reputation and success of our establishment is based in this activity.

At the same time, in the context of increasingly strict regu-lations, the Bank combined all of its investment fund man-agement and administration expertise within its subsidiary, Edmond de Rothschild Asset Management (Luxembourg), formerly Edmond de Rothschild Investment Advisors. Con-fident in these choices for the future, the Bank allocated a very significant amount of additional equity to its subsidiary to assist in its development.

Private Banking also prepared itself for the challenges of tomorrow. The commercial functions were reorganised in order to assist clients under the best conditions in a very complicated geopolitical and economic context. Due to the stability and commitment of its teams, the Private Banking activity significantly advanced the assets of our clients.

In an environment of high margin pressure, the Bank paid very particular attention to budget monitoring and manage-ment of operational costs. Thus, the activity of our branch in Italy was sold, and the representative offices in Slovakia and the Czech Republic were closed.

Our anchor in Luxembourg, in the heart of Europe, and its international expertise as a vehicle for investment, constitutes fertile ground in which the Edmond de Rothschild group intends to develop its premium private banking activities and investment fund management.

As highlighted by Benjamin and Ariane de Rothschild, the Group and the Bank must evolve, reinvent themselves and offer exemplary service to our clients, thus remaining the pillar of excellence that forged the reputation of our institu-tion. The transformations undertaken constitute a long-term investment of historic dimensions. The Group is evolving, but our values remain the same.

In this context, our business produced net earnings of EUR 23,866,113.



18

Comments on our annual accounts

A perusal of our annual accounts, prepared in accordance with the accounting principles generally accepted in the Grand Duchy of Luxembourg, reveals the healthy financial position of the Bank and its capacity for resilience in an environment in which interest rates are next to zero or even negative.

Balance sheet

As at 31 December 2014, the balance sheet total totalled EUR 5,488 million, down slightly by 1.5% compared to 31 Decem-ber 2013. On the assets side, accounts receivable from central banks decreased very significantly by EUR 1,399 million, to EUR 161.2 million. This change is the result of the decrease in remuneration rates of the Central Bank. Consequently, accounts receivable from credit institutions increased by EUR 1,133 million. These deposits are 93% secured by reverse repos. The item “Shares in affiliated companies” significantly increased as a result of the EUR 18 million capital increase of the subsidiary Edmond de Roth schild Asset Management (Luxembourg) and the structuring of a property in the company.

On the liabilities side, accounts payable to clients, which include ordinary credit accounts, deposit accounts and notice accounts totalled EUR 5,006 million, up by 1% compared to 31 December 2013.

Off-balance sheet items

Guarantees and undertakings increased slightly (+2%) to EUR 541,027,044.

Income statements

Income Net banking income of EUR 169,213,258 shows a 5% decrease compared to 31 December 2013, affected by the decrease in revenues in the affiliated companies and other operating income.

The net commissions (commissions received less commissions paid) increased by 2% and interest margins increased by 14%.

The capital gains earned through the contribution of the Baldauff building to the company “L’Immobilière Baldauff S.A.” was accounted for under “extraordinary income”.

ChargesOperating expenses decreased by 8% as a result of decreases in personnel costs and reductions in the items “premises and materials costs” and “communication costs”.

Net income The Bank’s net income is EUR 23,866,113, down 12% compared to the previous year.

19

Key figures (in millions of euros) 2014 EUR

2013 EUR

2014 / 2013 %

Balance sheet (in millions of euros)

Equity capital after distribution (funds for general banking risks and special items with a quota-share of reserves not included) 181 187 -3%

Balance sheet total before distribution 5,488 5,570 1.5%

Income statement (in millions of euros)

Income from interest operations 10 9 11%

Income from commissions and services 136 134 1%

Income from financial transactions 15 16 -6%

Income from securities 3 6 -50%

Other operating income 4 14 -71%

Operating expenses (personnel costs, other overhead and management expenses) 137 149 -8%

Profit for the year (after tax, provisions and depreciation) 24 27 -11%

Workforce at end of year (including branches) 619 758 -18%

Profitability

Return on equity (%) profit after tax (fixed provision and extraordinary provisions not included) / average of capital and reserves after distribution

13 %

14 %



20

Risk management objectives and strategy

The Bank’s risk management falls strictly within the frame-work of risk policies defined at Group level by the parent company. In accordance with this policy, the Bank ensures risk management via a set of principles, an organisational structure and limits and procedures closely linked to the Bank’s activities and the nature of the risks.

The risk exemption taken by the Edmond de Rothschild group (Switzerland) S.A., granted by the “Commission de Surveillance du Secteur Financier” (Financial Sector Supervisory Commission) (“the CSSF”) as part of the cal-culation of the major risk thresholds, is still applicable in accordance with Article 20 of CSSF Regulation no. 14-01 concerning the implementation of certain discretionary actions contained in European regulation 575/2013.

A more comprehensive report on objectives and strategy in terms of managing the risks facing the Bank can be found in Note 3 of the Annex to the Annual Accounts.

Events occurring after the close of the year

Effective from 1 January 2015, the Bank transferred its fund management and central administration activities to its subsidiary, Edmond de Rothschild Asset Manage-ment (Luxembourg). The purpose of this reorganization of our business activities was to clarify the role of our legal entities in order to facilitate their development. Mr Christophe de Backer, CEO of the Edmond de Rothschild group, announced his departure effective as at 31 January 2015. He was replaced by Baroness Ariane de Rothschild.

No other event occurred since the end of financial year 2014 which would be likely to affect the profitability of the Bank or increase its exposure to risk.

Outlook

The questioning of austerity measures in certain countries in the Eurozone and low growth rates associated with political instability on Europe’s borders naturally make our clients act more cautiously. However, the sustainable installation of negative interest rates on deposits along with the good per-formance of the financial markets is conducive to the gradual return of clients to the asset markets.

The takeover of the Group’s Operational Management by the Baroness de Rothschild is an encouraging sign and strong indicator of the commitment of our shareholder to the neces-sary transformation of the Group. This new impetus is part of the founding values of the Group, with which our clients identify. This new dynamic could have a significant impact on the development of our activities.

We started 2015 confident and determined, with realistic awareness of the fragility of our environment.

21

Approval of the annual accounts and recommended distribution of the available balance

We submit the accounts for the financial year 2014 for your approval together with our recommendation for distribut-ing the available balance, in accordance with our external Auditor’s report.

Management and personnel

We would like to congratulate the Management and all employees of the Bank, both in Luxembourg and abroad, for these results and thank our loyal clients for the confidence they place in us year after year.

Luxembourg, 3 March 2015 The Board of Directors

(in euros)

Profit for financial year 2014 amounting to 23,866,113

to which available reserves should be added 116,955,218

Making an available balance of 140,821,331

which we propose to distribute as follows:

Specific reserve frozen for five years representing five times the wealth tax 7,683,000

Available reserves 103,136,331

Dividend of EUR 2,000 per share 30,002,000

Total 140,821,331


ANNUAL ACCOUNTS 2014

24Auditor’s Report

26Balance sheet


28Off-balance sheet


29Profit and Loss Account for the year

ended 31 December 2014


24

AUDITOR’S REPORTTO THE BOARD OF DIRECTORS OF

EDMOND DE ROTHSCHILD (EUROPE) S.A.

Report on the annual accounts

Following our appointment by the General Meeting held on 27 February 2014, we have audited the accompanying annual accounts of Edmond de Rothschild (Europe) S.A., which com-prise the balance sheet as at 31 December 2014, the profit and loss account for the year then ended and a summary of signifi-cant accounting policies and other explanatory information.

Board of Directors’ responsibility for the annual accounts

The Board of Directors is responsible for the preparation and fair presentation of these annual accounts in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the annual accounts, and for such internal control as the Board of Directors determines is necessary to enable the preparation of annual accounts that are free from material misstatement, whether due to fraud or error.

Responsibility of the “Réviseur d’entreprises agréé”

Our responsibility is to express an opinion on these annual accounts based on our audit. We conducted our audit in accordance with International Standards on Auditing as adopted for Luxembourg by the “Commission de Surveil-lance du Secteur Financier”. These standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the annual accounts are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the annual accounts. The choice of procedures is determined by the judgment of the “Réviseur d’entreprises agréé”, as well as the evaluation of risks contained in the annual accounts as well as significant anomalies, such as those resulting from fraud or error. In making these risk assessments, the “Réviseur d’entreprises agréé” considers internal control relevant to the entity’s preparation and fair presentation

25

AUDITOR’S REPORT

of the annual accounts in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the rea-sonableness of accounting estimates made by the Board of Directors, as well as evaluating the overall presentation of the annual accounts.

We believe that the audit evidence we have obtained is suffi-cient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the annual accounts give a true and fair view of the financial position of Edmond de Rothschild (Europe) S.A. as of 31 December 2014 and the results of its operations for the year then ended in accordance with Luxem bourg legal and regulatory requirements relating to the preparation of the annual accounts.

Report on other legal and regulatory requirements

The management report, which is the responsibility of the Board of Directors, is consistent with the annual accounts.

PricewaterhouseCoopers, Cooperative Company Luxembourg, 2 April 2015 Represented by Rima Adas


26

Assets 2014 EUR

2013 EUR

Note(s)

Cash, credit balances with central banks and post office cheque accounts 5 163,888,224 163,527,590

Accounts receivable from credit institutions - at sight- other accounts receivable

6.2 188,424,410

4,286,459,296120,166,343

4,621,425,826

4,474,883,706 4,741,592,169

Accounts receivable from clients 6.2 754,814,484 595,308,154

Bonds and other fixed income securities- from public issuers- from other issuers

7.1.1, 7.29,995

2,340,3972,563

2,054,547

2,350,392 2,057,110

Shares and other variable income securities 7.1.1, 7.1.2 3,726,103 4,322,586

Holdings 6.1, 7.1.2, 8 10,834,857 9,255,937

Shares in affiliated companies 6.1, 7.1.2, 8 30,214,200 2,417,368

Tangible assets 8 14,841,501 21,000,284

Other assets 10 203,370 579,860

Equalization accounts 32,156,600 30,273,250

Total assets 5,487,913,437 5,570,334,308

ANNUAL ACCOUNTS 2014BALANCE SHEET AS AT 31 DECEMBER 2014

The attached Notes form an integral part of the annual accounts.

27


Liabilities 2014 EUR

2013 EUR

Note(s)

Accounts payable to credit institutions - at sight - deposit or notice

6.2126,530,340 40,648,379

229,654,436 74,006,561

167,178,719 303,660,997

Accounts payable to clients- other accounts payable - at sight - deposit or notice

6.2

4,663,001,162 342,700,250

4,786,786,996 165,793,872

5,005,701,412 4,952,580,868

Other liabilities 11 15,562,519 15,346,470

Equalization account 13,502,788 9,069,962

Provisions- provisions for tax- other provisions

12, 214,783,360

49,505,0137,779,643

49,183,025

54,288,373 56,962,668

Special items with a quota-share of reserves 13 3,944,031 1,277,321

Funds for general banking risks 17,013,486 19,413,486

Subscribed capital 14, 17 31,500,000 31,500,000

Reserves 15, 16, 17 155,355,996 147,629,099

Profit brought forward 17 - 5,774,532

Profit/loss for the year 17 23,866,113 27,118,905

Total liabilities 5,487,913,437 5,570,334,308


28

OFF-BALANCE SHEET ITEMS AS AT 31 DECEMBER 2014

2014 EUR

2013 EUR

Note(s)

Potential liabilities - of which: securities and assets given in guarantee

18 61,613,78261,613,782

73,312,20773,312,207

Undertakings 19 479,413,262 458,972,053

Fiduciary operations 941,158,897 973,950,120

The attached Notes form an integral part of the annual accounts.

29


PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2014

2014 EUR

2013 EUR

Note(s)

Interest and similar income - of which: from fixed income securities

14,032,65415,884

11,915,03816,285

Interest and similar charges (3,781,012) (2,955,416)

Income from securities - income from shareholdings- income from shares in affiliated companies

424,4422,753,355

376,2395,664,810

Commission received 169,388,434 166,066,495

Commission paid (33,123,774) (32,358,679)

Income from financial transactions 15,178,835 16,251,602

Other operating income 23 4,340,324 14,082,054

Administrative overheads - personnel costs- of which: wages and salaries social security charges of which those covering pensions - other administrative costs

27, 28

(134,341,472)(84,399,047)(68,132,319)(13,586,603)(10,846,939)(49,942,425)

(142,209,061)(91,310,850)(73,777,263)(14,159,315)(11,193,968)(50,898,211)

Value adjustments on intangible and tangible assets 8 (4,604,283) (5,661,804)

Other operating charges 24 (3,198,237) (6,896,331)

Value adjustments on accounts receivable and provisions for potential liabilities and undertakings 25 (2,652,216) (369,302)

Reversals of value adjustments on accounts receivable and provisions for potential liabilities and undertakings 12,961 4,820,845

Reversals of value adjustments on stocks and shares which are financial fixed assets, shareholdings and shares in affiliated companies - 490,000

Allocations to “special items with a quota-share of reserves” 26 (2,666,710) -

Appropriations to funds for general banking risks - (1,473,784)

Income resulting from the dissolution of the amounts in the funds for general banking risks 2,400,000 -

Income tax on income from ordinary activities (4,694,132) (3,944,208)

Income from ordinary activities, after tax 19,469,169 23,798,498

Extraordinary income 31 4,519,345 3,507,407

Other taxes not appearing under the above headings (122,401) (187,000)

Profit/loss for the year 23,866,113 27,118,905

NOTES TO THE ANNUAL ACCOUNTS




32

NOTES TO THE ANNUAL ACCOUNTSAS AT 31 DECEMBER 2014

Note 1 – General information

The company was formed by notarised deed on 19th February 1982 under the name Compagnie Privée de Finance S.A.. At that time, the company was neither a banking nor financial institution.

At an Extraordinary General Meeting on 24 October 1988, the shareholders decided to amend the corporate objectives to bring it into line with those of a credit institution; the com-pany’s name then became “Banque Edmond de Rothschild Luxembourg”.

Since that date, the company has been approved by the Treasury to operate as a credit institution in the Grand Duchy of Luxembourg.

On 20 June 1989, the name of the company was changed to Banque de Gestion Edmond de Rothschild Luxembourg.

The Extraordinary General Meeting of 31 May 1999 approved the contribution in kind consisting of all the assets and liabilities of Banque Privée Edmond de Rothschild S.A., Luxembourg branch to Banque de Gestion Edmond de Roth-schild Luxembourg. The contribution was made based on the financial situation of the branch as at 1 January 1999.

The Extraordinary General Meeting of 24 March 2003 decided to change the name to Banque Privée Edmond de Rothschild Europe. On 21 December 2011 it decided to set the statutory date for the General Meeting as the fourth Tuesday of April of each year.

The General Meeting of 12 May 2014 approved the change of the Bank’s name to Edmond de Rothschild (Europe), here-inafter the “Bank.” This decision took effect on 1 June 2014.

Three branches are currently established abroad in Spain, Portugal, and Belgium. They were opened respectively on 6 October 2000, 18 October 2000 and 12 February 2003. The Italian branch opened on 1 March 2007 and was closed on 9 September 2014. In addition, the representative offices in Bratislava and Prague were also closed on 31 March 2014. The Tel Aviv representative office remains operational.

Note 2 – Principle accounting methods

2.1 Basis of presentation

The annual accounts have been prepared in accordance with generally accepted accounting principles in the banking sector of the Grand Duchy of Luxembourg. Apart from the rules laid down by law and by the Financial Sector Supervisory Commis-sion, the accounting policies and valuation principles have been determined and introduced by the Board of Directors.

On the basis of the criteria laid down by Luxembourg law, the Bank is exempt from having to produce consolidated accounts and a consolidated report for the year ending 31 December 2014. Consequently, in accordance with the Law of 17 June 1992, these accounts have been presented on a non-consolidated basis for consideration by the sharehold-ers at the Annual General Meeting.

33


2.2 Foreign currency conversion

The Bank’s capital is denominated in euros (EUR) and it pre-sents its annual accounts in that currency.

The Bank uses the multi-currency accounting method which consists of recording all transactions in currencies other than that of the capital in the currency or currencies of those transactions. Income and charges are converted into the currency of the capital at the exchange rate in force on the date of the transaction.

2.2.1 Cash transactionsItems of the assets and liabilities denominated in foreign currencies are converted into the currency of the capital at the average cash rates in force on the closing date of the balance sheet.

Cash foreign currency transactions not yet closed out are converted into the currency of the capital at the cash rate in force on the closing date of the balance sheet.

2.2.2 Forward transactionsForward currency transactions not yet closed out are con-verted into the currency of the capital at the forward rate for the term still to run on the closing date of the balance sheet.

2.2.3 Exchange gains and lossesExchange gains and losses recorded on non-forward hedged cash items are accounted for in the income statement.

Exchange losses recorded on non-hedged forward transac-tions are accounted for in the income statement.

With regard to non-hedged forward transactions, any negative valuation results are offset against any previously observed positive valuation results. A provision is set up to cover any remaining losses.

2.3 Accounts receivable

Accounts receivable are entered on the balance sheet at their acquisition price less any repayments and value adjustments.

The Bank’s policy is to set up specific provisions for bad debts depending on the circumstances and for the amounts deter-mined by the responsible bodies. The Bank has also set up fixed tax-exempt provisions. These provisions are deducted from the asset headings concerned.

2.4 Valuation of securities

For valuation purposes, the Bank has split its securities into three types of securities portfolio:

2.4.1 Financial fixed assets portfolioThis consists of fixed income securities which were pur-chased with the intention of holding them until maturity. The charge resulting from purchasing them at a higher price than the redemption charge is written off pro rata temporis up to the maturity date of the securities. Fixed income secu-rities in the nature of financial assets fulfilling the terms and conditions laid down by the control authority are valued at their acquisition price. Other fixed income securities in the nature of financial fixed assets are valued at their acquisition price or market value, whichever is the lower.

It also consists of holdings and shares in affiliated compa-nies in the nature of fixed assets. These securities, intended to serve the activities of the Bank on a long term basis, are valued at their acquisition price or market value, whichever is the lower.


34

2.4.2 Trading portfolioThis consists of fixed and variable income securities which were originally acquired with the intention of selling them in the short term. These are securities which are negotiable in a market whose liquidity can be considered to be assured and whose market prices are constantly accessible to third parties.

The securities in the trading portfolio appear on the balance sheet at their acquisition cost or market value, whichever is the lower.

2.4.3 Investment portfolio The investment portfolio consists of securities acquired for the purpose of investment or return. This portfolio com-prises securities not included under the other two categories and is valued at the acquisition price or market value, which-ever is the lower. The acquisition cost is determined on the basis of the average weighted cost.

2.5 Fixed assets other than financial fixed assets

Fixed assets other than financial fixed assets are valued at their historical acquisition price. The acquisition price of fixed assets with a limited life is reduced by value adjust-ments calculated so as to systematically depreciate the value of those assets over their estimated working life.

In the case of long-term depreciation, fixed assets with or without a limited life are the subject of value adjustments in order to give them the lower value which is to be assigned to them on the closing date of the balance sheet. These value adjustments are reversed when the reasons which gave rise to them cease to exist.

2.6 Tangible assets

Tangible assets are used by the Bank within the framework of its operations. Tangible assets are valued at their histori-cal acquisition price less accrued depreciation. Depreciation is calculated by the straight line method over the estimated life of the asset. The rates used are as follows:

Rate of depreciation %

Property 1.5

Fixtures and fittings 10 - 33

Office equipment and furniture 10 - 25

IT equipment 20 - 33

Vehicles 20 - 33

35


2.7 Intangible assets

Setting-up costs are depreciated by the straight line method over five years.

2.8 Provision for assets at risk

The Bank’s policy is to set up a fixed provision for assets at risk in accordance with the provisions of Luxembourg leg-islation. The fixed provision calculated on the balance sheet headings is deducted from the asset headings concerned.

The fixed provision calculated on the off-balance sheet items is entered under “Provisions: other provisions”.

2.9 Funds for general banking risks

The Bank has set up a fund for general banking risks in order to cover the particular risks inherent in banking operations. Appropriations to the fund are made from profits after tax but before the net profit is determined and are not subject to any quantitative limit.

2.10 Accounts payable

Accounts payable are entered under Liabilities at their repayment value.

2.11 Financial derivatives

The Bank conducts forward exchange transactions for hedg-ing purposes. Gains and losses are spread over the same period as the profit/loss from the hedged item.

Note 3 – Risk management objectives and strategies

3.1 Preamble

The principles set out below are analysed in greater detail in the document entitled “Pillar III of Basel II – 2013” available on the Bank’s website www.groupedr.eu.

The Bank’s risk management and capital adequacy policy falls strictly within the framework of the capital and risk policies defined at Group level.

In accordance with that policy, the Bank provides risk man-agement and capital adequacy via a comprehensive frame-work of principles, an organisational structure, limits and procedures closely related to the activities of the Bank and the nature of the risks to which it is or could be exposed.

3.2 Credit and counterparty risk

With regard to credit and counterparty risk, the Bank applies the Group’s credit policy which, in addition to the credit decision-making procedures, specifies the rules governing sector risk and country risk.

Procedures and competence limits govern the granting of all credit. The quality of the debtors and guarantees obtained is analysed in accordance with objective criteria.

The exposure to risk on the Bank’s various counterparties is materialised by setting up authorisation limits established in accordance with its parent company; it can be reduced by obtaining guarantees and offsetting agreements.

The Bank’s policy on country risk is in principle not to main-tain relations with correspondents, custodians or debtors in risky countries. If such risks were to appear, the Bank would assess them and make provision for them in accordance with defined criteria.


36

3.3 Market risks

Market risks are defined as risks related to rate, exchange or price fluctuations and non-liquidity of assets which might entail re-financing problems.

The Bank’s treasury business is governed by a set of limits which vary according to the currencies traded and finan-cial instruments used. Each of these limits is checked on a daily basis.

3.4 Liquidity risk

Liquidity risk can be defined as the risk that the Bank cannot meet its due obligations because its financing capacity does not allow it to do so. It also covers potential losses related to loans concluded at high interest rates or the investment of funds at rates lower than market rates.

With regard to Luxembourg statutory requirements, the Bank has always comfortably exceeded the fixed minimum of 30%. This ratio is monitored regularly by the Management Committee in conjunction with the Treasury Department.

3.5 Operating risks

The Bank’s activities are focused on traditional banking activities, carried out by its staff and supervised by the Man-agement Committee.

In order to reduce its risks, the Bank has introduced an organisational process, consisting in particular of internal procedures and tools governing the activities carried out, a system of hierarchical responsibility within each depart-ment, an IT system providing for separation of duties and monitoring of tasks and an internal auditing department reporting directly to the Management Committee.

The Bank has also introduced a continuity plan designed to enable it to continue operations under all circumstances. An IT back-up system has been installed so that normal busi-ness can be resumed as soon as possible in the event of major problems.

3.6 Market and financial instrument risks

Through its network of correspondents, the Bank buys and sells financial instruments and currencies in the organised and over-the-counter markets. It predominantly acts as a commission agent on behalf of its customers.

Positions held for its own account are covered by lines agreed by the Board of Directors.

37


3.7 Interest and exchange rate fluctuation risks

The main activity in financial instruments is primarily related to hedging transactions, mainly on behalf of its clients as the Bank does not actively trade for its own account.

With regard to investments/deposits, the Bank’s line is to seek as perfect a match as possible in terms of both currency and maturity dates. The rule is that clients’ deposits are automatically reinvested in the market in identical curren-cies and at identical maturities, at the market rate less the Bank’s margin. The margin is monitored by the Management Committee on a monthly basis.

The Bank’s foreign exchange policy is to restrict the holding of open positions. Overall “intraday” and “overnight” cur-rency limits are established. These are constantly monitored and regularly reported to the Management Committee.

Note 4 – Financial instruments

4.1 Analysis of financial instruments

4.1.1 Information on primary financial instrumentsThe following table gives information on the level of the Bank’s business in primary financial instruments at book value, bro-ken down according to residual life span. The table also gives the total fair value of instruments held for dealing purposes when this differs substantially from the value at which these instruments are entered in the accounts.

“Fair value” means the market value at which an asset could be exchanged or a liability paid off within the framework of an ordinary transaction concluded under normal terms and conditions between totally unrelated competent parties, act-ing perfectly freely, with the exception of forced sales or sales made within the framework of a liquidation.


38

Primary financial instruments as at 31 December 2014(at book value – in thousands of EUR)

≤ 3 months

> 3 months ≤ 1 year

> 1 to 5 years

> 5 years

without maturity

Total

Category of instrument (financial assets)

Cash, credit balances with central banks and in post office cheque accounts 163,888 - - - - 163,888

Accounts receivable from credit institutions 4,372,070 102,814 - - - 4,474,884

Accounts receivable from clients 534,513 220,301 - - - 754,814

Bonds and other fixed income securities (*) - - 2,347 3 - 2,350

Shares and other variable income securities (**) - - - - 3,726 3,726

Holdings - - - - 10,835 10,835

Shares in affiliated companies - - - - 30,214 30,214

Total financial assets 5,070,471 323,115 2,347 3 44,775 5,440,711

Non-financial assets 47,202

Total assets 5,487,913

Category of instrument (financial liabilities)

Amounts payable to credit institutions - at sight - deposit or notice

126,53032,649

-8,000

--

--

--

126,53040,649

Accounts payable to clients - other accounts payable - at sight - deposit or notice

4,663,001205,205

-137,495

--

--

--

4,663,001342,700

Total financial liabilities 5,027,385 145,495 - - - 5,172,880

Non-financial liabilities 315,033

Total liabilities 5,487,913

(*) The fair value and book value of the bonds in the trading portfolio (after fixed provision) as at 31 December 2014 were EUR 12,580 and EUR 12,475 respectively. (**) The fair value and book value of the shares in the trading portfolio (after fixed provision) were EUR 1,310,301 and EUR 1,141,511 respectively.

4.1.1.1 Analysis of financial instruments – Primary financial instruments (at book value – in thousands of EUR) as at 31 December 2014

39


Primary financial instruments as at 31 December 2013(at book value – in thousands of EUR)

≤ 3 months

> 3 months ≤ 1 year

> 1 to 5 years

> 5 years

without maturity

Total

Category of instrument (financial assets)

Cash, credit balances with central banks and in post office cheque accounts 163,528 - - - - 163,528

Accounts receivable from credit institutions 4,741,592 - - - - 4,741,592

Accounts receivable from clients 452,455 142,853 - - - 595,308

Bonds and other fixed income securities (*) - - 2,056 1 - 2,057

Shares and other variable income securities (**) - - - - 4,323 4,323

Holdings - - - - 9,256 9,256

Shares in affiliated companies - - - - 2,417 2,417

Total financial assets 5,357,575 142,853 2,056 1 15,996 5,518,481

Non-financial assets 51,853

Total assets 5,570,334

Category of instrument (financial liabilities)

Amounts payable to credit institutions - at sight - deposit or notice

229,65474,007

--

--

--

--

229,65474,007

Accounts payable to clients - other accounts payable - at sight - deposit or notice

4,786,78743,749

-122,045

--

--

--

4,786,787165,794

Total financial liabilities 5,134,197 122,045 - - - 5,256,242

Non-financial liabilities 314,092

Total liabilities 5,570,334

(*) The fair value and book value of the bonds in the trading portfolio (after fixed provision) as at 31 December 2013 were EUR 4,384 and EUR 4,374 respectively. (**)The fair value and book value of the shares in the trading portfolio (after fixed provision) were EUR 1,513,388 and EUR 1,355,254 respectively.

4.1.1.2 Analysis of financial instruments – Primary financial instruments (at book value – in thousands of EUR) as at 31 December 2013


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4.1.2 Information on financial derivativesThe Bank only uses forward exchange contracts for the sole purpose of hedging interest and exchange risks.

4.1.3 Analysis of financial derivatives used for hedging purposesAt 31 December 2014, the Bank held the following financial derivatives:

(in thousands of EUR)

< 3 months

Notional value

> 3 months and ≤ 1 an

Notionalvalue

> 1 and ≤ 5 yearsNotional

value

> 5 years

Notionalvalue

Total

Notional value Total Fair Value

Assets Liabilities

Forward exchange contracts 10,394,449 358,513 - - 10,752,962 125,798 123,629

Currency options 787 - - - 787 21 21

(in thousands of EUR)

< 3 months

Notional value

> 3 months and ≤ 1 an

Notionalvalue

> 1 and ≤ 5 yearsNotional

value

> 5 years

Notional value

Total

Notional value Total Fair Value

Assets Liabilities

Forward exchange contracts 13,174,117 229,877 - - 13,403,994 83,622 81,392

Currency options 37,633 13,337 - - 50,970 430 430

At 31 December 2013, the Bank held the following financial derivatives:

All transactions in financial derivatives are concluded for hedging purposes.

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4.2 Credit risk

4.2.1 Description of credit riskGranting credit is not the Bank’s principal vocation. It may, however, within the framework of its business, grant Lombard credits to its investment fund or private clients.

The Bank does not normally take financial risks and obtains first line guarantees such as pledges of customers’ assets for amounts covering the undertakings.

4.2.2 Measurement of credit risk linked to financial instruments. For derivatives traded outside the stock market, the book value, in other words the notional value, does not translate the maximum level of exposure to the risk. The Bank calcu-lates the credit risk relating to non-stock market derivatives on the basis of the initial risk method in accordance with the provisions of circulars issued by the control authority.

The tables below show the level of exposure to credit risk according to notional amounts, equivalent risk amounts and net exposure to risk taking any sureties into account.

Credit risk for non-stock market derivatives (using the initial risk method) as at 31 December 2014:

Level of solvency of the counterparties Notional amount*

(1)

Amounts in equivalent risk*

(2)

Guarantees

(3)

Net risk exposure

(4)=(2) - (3)

EUR EUR EUR EUR

Forward exchange contract - weighting of 2% 10,679,639,585 213,592,792 213,592,792 -

Currency options - weighting of 2% 786,600 15,732 15,732 -

* Net of effects of any offsetting agreement, the execution of which the establishment is in a position to demand.


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Credit risk for non-stock market derivatives (using the initial risk method) as at 31 December 2013:

Level of solvency of the counterparties Notional amount*

(1)

Amounts in equivalent risk*

(2)

Guarantees

(3)

Net risk exposure

(4)=(2) - (3)

EUR EUR EUR EUR

Forward exchange contract - weighting of 2% 13,405,623,992 268,112,480 268,112,480 -

Currency options - weighting of 2% 50,970,301 1,019,406 1,019,406 -

* Net of effects of any offsetting agreement, the execution of which the establishment is in a position to demand.

4.3 Market risk

The Bank’s securities portfolio consists of one FRN Roth schild Continuation Finance 2015 security, Prifund Eurobond-A units, BeCapital Private Equity units and one Argos Funds Argonaut unit offering no particular financial risk.

The trading portfolio consists primarily of investment fund units. These offer no particular risk.

The remaining market risks correspond to a portfolio of holdings and shares in affiliated companies whose valuation value is higher than the acquisition cost.

Taking the above into account, the Bank’s market risk is limited.

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Note 5 – Cash, credit balances with central banks and post office cheque accounts

In accordance with the requirements of the European Central Bank, the Luxembourg Central Bank (hereinafter referred to as LCB) set up a system of compulsory reserves, with effect from 1 January 1999, to which all Luxembourg credit institutions are subject. As at 31 December 2014, the value of the minimum reserve held by the Bank with the LCB was EUR 47,094,130 (2013: EUR 47,094,128).

Name Head Office % holding Book valueas at 31.12.2014

Holdings EUR

Cobehold S.A. Belgium 1.52% 10,897,095

Société de la Bourse de Luxembourg Luxembourg 0.06% 20,766

ECH Investments Limited Cayman Islands Cayman Islands 7.50% 18,750

Gross value as at 31.12.2014 Less fixed provision

10,936,611(101,754)

Net value as at 31.12.2014 10,834,857

As at 31 December 2014, the values of the minimum reserves held by the Bank with the Central Banks of Spain, Portugal, Belgium and Italy were respectively EUR 50,175 (2013: EUR 250,148), EUR 1,436,817 (2013: EUR 1,438,836) and EUR 4,667,005 (2013: EUR 4,268,585).

Note 6 – Holdings and shares in affiliated companies

6.1 Details of holdings and shares in affiliated companies

Holdings and shares in affiliated companies held by the Bank are as follows:


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Name

Head Office

% holding

Net book value

as at 31.12.2014

Share-holders’

equity (*)

as at 31.12.2014

Share-holders’

equity as at

31.12.2014

Profit/Loss as at

31.12.2014

Profit/Loss as at

31.12.2014

Shares in affiliated companies in EUR currency in EUR currency in EUR

Immobilière Baldauff S.A. Luxembourg 100.00% 9,821,000 9,729,676 9,729,676 (84,447) (84,447)

Priadvisory Holding S.A. (**) Switzerland 100.00% 1,996,008 4,068,949 3,887,036 1,004,023 959,135

Prifund Conseil S.A. (**) Luxembourg 100.00% 141,155 289,621 289,621 7,292,464 7,292,464

Prifund Conseil (Bahamas) (****) Bahamas 100.00% 88,998 8,254,656 8,254,656 10,121,656 10,121,656

Iberian Renewable Energies GP S.à r.l. Luxembourg 100.00% 0 25,214 25,214 (37,579) (37,579)

LCF Edmond de Rothschild Conseil Luxembourg 99.99% 46,834 121,848 121,848 (6,141) (6,141)

EdRAM (Luxembourg) Luxembourg 99.92% 18,110,500 21,279,049 21,279,049 1,161,245 1,161,245

EdRAC (Europe) Luxembourg 99.68% 49,839 382,305 382,305 253,706 253,706

Edmond de Rothschild Nikko Co., Ltd. (*****) Japan 50.00% 195,019 66,029,853 454,642 9,382,886 64,605

EdR Intl Fd Bermuda (***) Bermuda 14.75% 48,598 4,273,360 3,098,485 634,805 460,278

Net value as at 31.12.2014 Less fixed provision

30,497,951 (283,751)

Net value as at 31.12.2014 30,214,200

(*) Including profit/loss for 2014.(**) The accounts were closed on 30 November 2014.(***) Data available as at 31 December 2012. (****) Available data as at 30 November 2013. (*****) formerly LCF EdR Nikko Cordial.

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Note 7 – Stocks and shares

7.1 Listed and unlisted stocks and shares

Stocks and shares can be presented as follows, depending on whether or not they are listed:

7.1.1 Listed stocks and shares


6.2 Accounts payable and receivable to/from affiliated companies or companies in which there is a participating interest

Details of accounts payable (before fixed provision) and accounts receivable to/from affiliated companies or compa-nies in which there is a participating interest are as follows:

Affiliated companies

2014

Affiliated companies

2013

Companies in which there is a

partici pating interest 2014

Companies in which there is a

partici pating interest 2013

EUR EUR EUR EUR

Accounts receivable- accounts receivable from credit institutions- accounts receivable from clients

171,083,797

1,063,92224,464,823

2,474,735- -

- -

Accounts payable - accounts payable to credit institutions- accounts payable to clients

34,762,19540,294,571

128,050,49439,545,176

- 2,923,213

- 1,441,204

2014 EUR

2013 EUR

Bonds and other fixed income securities - public issuers- other issuers

9,9952,340,397

2,5632,054,547

2,350,392 2,057,110

Shares and other variable income securities 116,725 89,932


46

2014 EUR

2013 EUR

Shares and other variable income securities 3,609,378 4,232,654

Holdings 10,834,857 9,255,937

Shares in affiliated companies 30,214,200 2,417,368

2014 EUR

2013 EUR

Investment portfolio 2,337,916 2,052,736

Trading portfolio 12,476 4,374

7.1.2 Unlisted stocks and shares

7.2 Types of bond and other fixed income securities portfolios

Bonds and other fixed income securities are split as follows:

The investment portfolio consisted of one FRN Rothschild Continuation Finance 2015 security, the market value of which was EUR 2,458,715 as at 31 December 2014.

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ANNEXE AUX COMPTES ANNUELS

Note 8 – Fixed assets

Movements in the Bank’s fixed assets over the course of the financial year were as follows:

Gross value as at start of

year

Inbound

Outbound

Translation adjustment

(*)

Gross value at

year-end closing

Cumulative value

adjustments at end of

year

Net value at close of

year

EUR EUR EUR EUR EUR EUR EUR

Holdings 9,366,814 1,569,797 - - 10,936,611 - 10,936,611

Shares in affiliated companies 2,589,463 28,024,692 - 45,547 30,659,702 (161,751) 30,497,951

Less fixed provision (385,505)

Intangible assets of which: Setting-up costs 303,200 - - - 303,200 (303,200) -

Tangible assets of which: Land, building and fixtures (**) Technical installations and machinery Other installations, equipment and furniture

23,889,346

47,964,944

13,976,983

429,544

3,173,842

259,505

(5,690,470)

-

(386,070)

-

-

-

18,628,420

51,138,786

13,850,418

(12,104,364)

(44,567,895)

(11,964,484)

6,524,056

6,570,891

1,885,934

Less fixed provision (139,381)

(*)The translation adjustment is the difference between the gross value as at 1 January 2014 and that gross value converted at the exchange rate in force on 31 December 2014. (**) The net value of land and buildings used within the framework of own activities was EUR 3,234,190 as at 31 December 2014.


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Note 9 – Assets and liabilities denominated in foreign currencies

As at 31 December 2014, the exchange value in accounting currency of assets and liabilities denominated in for-eign currencies respectively came to EUR 2,428,581,039 (2013: EUR 2,095,512,725) and EUR 2,444,183,775 (2013: EUR 2,099,323,693).

2014 EUR

2013 EUR

Provisions for salaries and bonuses payable 28,567,447 28,699,072

Provisions for risks related to investment fund management and administration activities 8,623,600 8,623,600

Provisions for specific risks and operational management 4,993,180 4,405,574

AGDL provision 7,036,784 7,008,789

Fixed provision for off-balance sheet items (see Note 2.8) 284,002 445,990

49,505,013 49,183,025

Note 10 – Other assets

As at 31 December 2014, this item primarily consisted of short-term receivables.

Note 11 – Other liabilities

As at 31 December 2014, this item consisted primarily of social security charges, deductions at source payable and VAT payable (EUR 14,777,036).

Note 12 – Other provisions

Other provisions are detailed as follows:

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Note 13 – Special items with a quota-share of reserves

The capital gains pursuant to Articles 53, 54 and 54bis of the income tax law correspond to capital gains earned in 2002 on the sale of LCF Rothschild PriFund Conseil S.A., as well as capital gains earned in 2014 through the contribution of Villa Baldauff to the company “L’Immobilière Baldauff S.A.”.

Note 14 – Share capital

The share capital stands at EUR 31,500,000 and is represented by 15,001 fully paid shares, with no declared nominal value.

Note 15 – Legal reserve

In accordance with Luxembourg law, the Bank must annu-ally assign an amount to the legal reserve equivalent to 5% of the net profit for the year until that reserve reaches 10% of the subscribed capital, which ceiling was reached in 2003. The legal reserve may not be distributed. The legal reserve is fully set up.

Note 16 – Other reserves

In accordance with tax legislation in force since 1 January 2002, the Bank reduced its Wealth Tax (“IF”) burden within the limit of the Group Income Tax (“IRC”) burden for the year before the allocation of tax credits. To comply with the legislation, the Bank decided to allocate to unavail-able reserves an amount corresponding to five times the reduced IF amount. This reserve will be unavailable for five years from the year following that during which the IF was assigned.


50

Note 17 – Changes in shareholders’ equity

Changes in shareholders’ equity can be analysed as follows:

Subscribed capital

Legal reserve

Other reserves

Profit/loss brought forward

Profit/loss for the year

Total

EUR EUR EUR EUR EUR EUR

Position as at 31 December 2013 31,500,000 3,150,000 144,479,099 5,774,532 27,118,905 212,022,536

Appropriation to other reserves - - 7,726,897 - (7,496,744) 230,153

Dividends paid - - - - (25,396,693) (25,396,693)

Appropriation to profit/loss carried forward - - - (5,774,532) 5,774,532 -

Profit/loss as at 31 December 2014 - - - - 23,866,113 23,866,113

Position as at 31 December 2014 31,500,000 3,150,000 152,205,996 - 23,866,113 210,722,109

The Ordinary General Meeting of Shareholders of 22 April 2014 decided to pay a dividend of EUR 25,396,693.

Note 18 – Potential liabilities

As at 31 December 2014 and 2013, the Bank was committed to the following off-balance sheet transactions:

2014 EUR

2013 EUR

Guarantees and other direct credit substitutes 61,613,782 73,312,207

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2014 EUR

2013 EUR

Confirmed but unused credits 479,413,262 458,972,053

2014 EUR

2013 EUR

Transactions linked to exchange rates - Forward exchange transactions 10,753,748,308 13,454,963,868

Note 19 – Off-balance sheet undertakings

As at 31 December 2014 and 2013, the Bank was committed to the following type of transactions:

Note 20 – Forward transactions not closed out

As at 31 December 2014 and 2013, the Bank was committed to the following off-balance sheet transactions:

These transactions are concluded for the sole purpose of hedging transactions executed on behalf of the Bank’s clients.


52

Note 21 – Mutual investor indemnification and deposit guarantee system

All credit institutions in Luxembourg are members of the non-profit making association “Association pour la Garantie des Dépôts, Luxembourg” (AGDL).

The sole purpose of the AGDL is to set up a mutual system to guarantee cash deposits and debts resulting from invest-ment transactions carried out by individuals with members of the AGDL, without distinction of nationality or residence, by Luxembourg companies or companies of another member State of the European Union, of such a size that they are per-mitted by law to produce an abridged balance sheet, as well as by companies of a comparable size subject to the law of another member State of the European Union.

The AGDL will reimburse the depositor with the value of his guaranteed cash deposit and reimburse the investor with the value of his guaranteed credit up to a maximum of the exchange value in any currency of EUR 100,000 per guar-anteed cash deposit and EUR 20,000 per guaranteed credit resulting from investment transactions other than that relating to a cash deposit.

During the course of 2014, the Bank allocated EUR 27,995 to that provision, of which EUR 27,995 corresponding to repay-ments received over the year and accounted for under “Other operating income” on the income statement.

The Bank does not consider sums paid to the AGDL in previ-ous years as recoverable as at 31 December 2014 and there-fore no account receivable was recorded in that regard.

Note 22 – Management and representation services

The Bank provides third parties with management and repre-sentation services in the following fields:

- Asset management and consultancy; - Safe custody and administration of securities for funds and institutional investors; - Fiduciary representation; - Agency duties.

Note 23 – Other operating income

This item primarily consists of reversals of provisions for prior years.

Note 24 – Other operating charges

This item primarily consists of appropriations to provi-sions for litigation, goodwill gestures and operational losses occurring during the course of 2014.

Note 25 – Value adjustments on accounts receivable and provisions for potential liabilities and undertakings

The balance of this item consists primarily of reserved interest.

53


Note 26 – Allocations to “special items with a quota-share of reserves”

The balance of this item consists of capital gains of the reinvestment consisting of the in-kind contribution of Villa Baldauff to the company “L’Immobilière Baldauff S.A.”

2014Number of persons

2013Number of persons

Senior Management 31 70

Executives 175 152

Employees 499 565

705 787

Remuneration 2014EUR

Remuneration 2013EUR

Directors 425,000 425,000

Senior Management 7,770,021 12,857,981

8,195,021 13,282,981

Note 28 – Remuneration paid to members of management bodies

This can be summarised as follows as at 31 December 2014:

Note 27 – Personnel employed during the year

The average number of members of staff the Bank employed during 2013 and 2014 was:

These amounts represent the actual amount approved by the Remuneration Committee and received in 2014.


54

Note 29 – Loans and advances granted to members of management bodies

These can be summarised as follows as at 31 December 2014:

2014 EUR

2013 EUR

Loans - 1,560,000

Bank guarantees 196,500 196,500

196,500 1,756,500

Note 30 – Pensions

With effect from 1 January 1986, the Bank set up a supple-mentary defined contributions pension scheme for all its personnel. This scheme has been modified to bring it into line with the Law of 8 June 1999 on supplementary pension schemes.

Since 2003, the personnel pension scheme has been transferred to an external insurance company licensed in the Grand Duchy of Luxembourg.

On 22 October 2000, the Bank’s branch in Portugal estab-lished a defined benefits pension plan for certain members of its staff hired before 1 January 2011. The pension plan concerns service years prior to 1 January 2011.

55


2014 EUR

2013 EUR

Legal audit of annual accounts 460,683 441,185

Other insurance services 128,000 128,916

Tax services 303,606 152,835

Other 296,970 233,945

1,189,259 956,881

Note 31 – Extraordinary income

The balance of this item consists of capital gains earned through the contribution of Villa Baldauff to the company “L’Immobilière Baldauff S.A.”.

Note 32 – Auditor’s fees

The Bank’s Auditor’s fees for 2014 are as follows:

Note 33 – Information relating to consolidated companies

The Bank’s annual accounts are included in the consoli-dated accounts of Edmond de Rothschild (Switzerland) S.A., Geneva, which constitutes the smallest and largest group of companies to which the Bank belongs as a subsidiary, and whose consolidated accounts are available at the head office of the Banque Privée Edmond de Rothschild S.A., Geneva, 18, rue de Hesse – Geneva.


56

ADDRESSESEDMOND DE ROTHSCHILD (EUROPE)

Head Office

LuxembourgEdmond de Rothschild (Europe) (formerly Banque Privée Edmond de Rothschild Europe) 20, boulevard Emmanuel ServaisL-2535 LuxembourgTel.: (+352) 24 88 1Fax: (+352) 24 88 82 22www.edmond-de-rothschild.eu

Abroad

Branches

BelgiumBrussels Head OfficeEdmond de Rothschild (Europe) Succursale en Belgique Avenue Louise 480 - Bte 16A1050 BrusselsTel.: (+32) 2 645 57 57Fax: (+32) 2 645 57 20www.edmond-de-rothschild.be

Antwerp BranchEdmond de Rothschild (Europe)Frankrijklei 1032000 AntwerpenTel.: (+32) 3 212 21 11Fax: (+32) 3 212 21 22www.edmond-de-rothschild.be

Liège BranchEdmond de Rothschild (Europe)Quai de Rome 564000 LiègeTel.: (+32) 4 234 95 95Fax: (+32) 4 234 95 75www.edmond-de-rothschild.be

Subsidiaries

LuxembourgEdmond de Rothschild Assurances et Conseils (Europe)(formerly Adjutoris Conseil)18, boulevard Emmanuel ServaisL-2535 LuxembourgTel.: (+352) 26 26 23 92Fax: (+352) 26 26 23 94

Edmond de Rothschild Asset Management (Luxembourg)(formerly Edmond de Rothschild Investment Advisors)20, boulevard Emmanuel ServaisL-2535 LuxembourgTel.: (+352) 24 88 27 32Fax: (+352) 24 88 84 02www.edram.lu

57


IsraelEdmond de Rothschild (Europe), Representative Office Israel 46, boulevard Rothschild 66883 Tel-Aviv Tel.: (+972) 356 69 818 Fax: (+972) 356 69 821www.bpere.edmond-de-rothschild.co.il

Joint-venture Company

JapanEdmond de RothschildNikko Cordial Co., Ltd1-12-1, Yurakucho, Chiyoda-ku Tokyo # 100-0006 Tel.: (+81) 3 3283-3535 Fax: (+81) 3 3283-1611

Abroad

SpainMadrid Head OfficeEdmond de Rothschild (Europe)Sucursal en EspañaPaseo de la Castellana 5528046 MadridTel.: (+34) 91 364 66 00Fax: (+34) 91 364 66 63www.edmond-de-rothschild.es

Barcelona BranchEdmond de Rothschild (Europe)Sucursal en EspañaJosep Bertrand 1108021 BarceloneTel.: (+34) 93 362 30 00Fax: (+34) 93 362 30 50www.edmond-de-rothschild.es

PortugalEdmond de Rothschild (Europe)Sucursal em PortugalRua D. Pedro V, 130 1250-095 Lisbonne Tel.: (+351) 21 045 46 60 Fax: (+351) 21 045 46 87/88 www.edmond-de-rothschild.pt

ADDRESSES


58

EDMOND DE ROTHSCHILD (SUISSE) S.A.

Head Office

GenevaEdmond de Rothschild (Suisse) S.A. (formerly Banque Privée Edmond de Rothschild S.A.) 18, rue de Hesse 1204 Geneva Tel.: (+41) 58 818 91 11 Fax: (+41) 58 818 91 21 www.edmond-de-rothschild.ch

Subsidiaries

LuganoEdmond de Rothschild (Lugano) S.A. (formerly Banca Privata Edmond de Rothschild S.A.) Via Ginevra 2 - CP 5882 6901 Lugano Tel.: (+41) 91 913 45 00 Fax: (+41) 91 913 45 01 www.privata.edmond-de-rothschild.ch

Branches

FribourgEdmond de Rothschild (Suisse) S.A.Succursale de Fribourg (formerly Banque Privée Edmond de Rothschild S.A.) 11, rue de Morat - CP 144 1701 Fribourg Tel.: (+41) 26 347 24 24 Fax: (+41) 26 347 24 20 www.edmond-de-rothschild.ch

LausanneEdmond de Rothschild (Suisse) S.A.Succursale de Lausanne (formerly Banque Privée Edmond de Rothschild S.A.) 2, avenue Agassiz 1003 Lausanne Tel.: (+41) 21 318 88 88 Fax: (+41) 21 323 29 22 www.edmond-de-rothschild.ch

59

ChinaEdmond de Rothschild Family Advisory (Hong Kong) Limited (formerly Privaco Family Office (HK) Limited) Suite 5004, 50th floor, One Exchange Square 8 Connaught Place Central - Hong Kong Tel.: (+852) 3125 16 00 Fax: (+852) 2869 16 18

LuxembourgEdmond de Rothschild (Europe)(details on page 56)

MonacoEdmond de Rothschild (Monaco) (formerly Banque de Gestion Edmond de Rothschild Monaco) Les Terrasses 2, avenue de Monte-Carlo - BP 317 98006 Monaco Cedex Tel.: (+377) 93 10 47 47 Fax: (+377) 93 25 75 57 www.edmond-de-rothschild.mc Edmond de Rothschild Assurances et Conseils (Monaco)Filiale de Edmond de Rothschild (Monaco) (formerly Edmond de Rothschild Conseil et Courtage d'Assurance - Monaco) Les Terrasses 2, avenue de Monte-Carlo - BP 317 98006 Monaco Cedex Tel.: (+377) 97 98 28 00 Fax: (+377) 97 98 28 01 www.edmond-de-rothschild.mc Edmond de Rothschild Gestion (Monaco)Filiale de Edmond de Rothschild (Monaco)Les Terrasses 2, avenue de Monte-Carlo - BP 317 98006 Monaco Cedex Tel.: (+377) 97 98 22 14 Fax: (+377) 97 98 22 18

Abroad

BranchChinaEdmond de Rothschild (Suisse) S.A. Hong Kong Branch (formerly Banque Privée Edmond de Rothschild S.A.- Hong Kong Branch) Suite 5001, 50th floor, One Exchange Square 8 Connaught Place Central – Hong Kong Tel.: (+852) 37 65 06 00 Fax: (+852) 28 77 21 85www.edmond-de-rothschild.hk

Subsidiaries

BahamasEdmond de Rothschild (Bahamas) Ltd. (formerly Banque Privée Edmond de Rothschild Ltd.) Lyford Financial Centre - Lyford Cay no. 2 Western Road P.O. Box SP 63948 Nassau Tel.: (+1) 242 702 80 00 Fax: (+1) 242 702 80 08 www.edmond-de-rothschild.bs

Channel IslandsEdmond de Rothschild Securities (C.I.) Limited (formerly Edmond de Rothschild (C.I.) Limited) Hirzel Court Suite D St. Peter Port Guernsey GY1 2NH Tel.: (+44) 1481 716 336 Fax: (+44) 1481 714 416 www.edmond-de-rothschild.gg

New ZealandPrivaco Trust Limited Level 3, Parnell Road 280 Parnell Auckland 1052 – New Zealand Tel.: (+64) 93 07 39 50 Fax: (+64) 93 66 14 82

United Kingdom- Edmond de Rothschild (UK) Limited - Edmond de Rothschild Asset Management (UK) Limited - Edmond de Rothschild Capital Holdings Limited - Edmond de Rothschild Private Merchant Banking LLP - Edmond de Rothschild Securities (UK) Limited 4, Carlton Gardens SW1Y 5AA London Tel.: (+44) 20 7845 5900 Fax: (+44) 20 7845 5901 www.edmond-de-rothschild.co.uk

Representative Offices

United Arab EmiratesEdmond de Rothschild (Suisse) S.A.,Banking Rep. Office Dubai (formerly Banque Privée Edmond de Rothschild S.A. Banking Rep. Office Dubai) Sunset, office 46, 2nd floor Jumeirah-3, Jumeirah Road P.O. Box 214924 Dubaï Tel.: (+9714) 346 53 88 Fax: (+9714) 346 53 89

UruguayEdmond de Rothschild (Suisse) S.A.Representación Uruguay (formerly Representación B.P. Edmond de Rothschild S.A.) World Trade Center Montevideo Torre II - Piso 21 Avenida Luis Alberto de Herrera 1248 11300 Montevideo Tel.: (+598) 2 623 24 00 Fax: (+598) 2 623 24 01

ADDRESSES


60

OTHER COMPANIES IN THE EDMOND DE ROTHSCHILD GROUP

EDMOND DE ROTHSCHILD (FRANCE)

Head Office

FranceEdmond de Rothschild (France)(formerly La Compagnie Financière Edmond de Rothschild Banque) 47, rue du Faubourg Saint-Honoré 75401 Paris Cedex 08 Tel.: (+33) 1 40 17 25 25 Fax: (+33) 1 40 17 24 02 www.edmond-de-rothschild.fr

NantesEdmond de Rothschild (France) 11, rue Lafayette 44000 Nantes Tel.: (+33) 2 53 59 10 00 Fax: (+33) 2 53 59 10 09 www.edmond-de-rothschild.fr

StrasbourgEdmond de Rothschild (France) 6, avenue de la Marseillaise 67000 Strasbourg Tel.: (+33) 3 68 33 90 00 Fax: (+33) 3 88 35 64 86 www.edmond-de-rothschild.fr

ToulouseEdmond de Rothschild (France) 22, rue Croix Baragnon 31000 Toulouse Tel.: (+33) 5 67 20 49 00 Fax: (+33) 5 61 73 49 04 www.edmond-de-rothschild.fr

Representative Offices

BordeauxEdmond de Rothschild (France) Hôtel de Saige 23, cours du Chapeau Rouge 33000 Bordeaux Tel.: (+33) 5 56 44 20 66 Fax: (+33) 5 56 51 66 03 www.edmond-de-rothschild.fr

LilleEdmond de Rothschild (France) 116, rue de Jemmapes 59800 Lille Tel.: (+33) 3 62 53 75 00 Fax: (+33) 3 28 04 96 20 www.edmond-de-rothschild.fr

LyonEdmond de Rothschild (France) 55, avenue Foch 69006 Lyon Tel.: (+33) 4 72 82 35 25 Fax: (+33) 4 78 93 59 56 www.edmond-de-rothschild.fr

MarseilleEdmond de Rothschild (France) 165, avenue du Prado 13272 Marseille Tel.: (+33) 4 91 29 90 80 Fax: (+33) 4 91 29 90 85 www.edmond-de-rothschild.fr

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Abroad


ChinaEdmond de Rothschild (France) Shanghai Representative Office(formerly La Compagnie Financière Edmond de Rothschild Banque)Room 3, 28F China Insurance Building 166 East Lujiazui Road, Pudong New Area 200120 Shanghai Tel.: (+86) 21 58 76 51 90 Fax: (+86) 21 58 76 71 80 www.edmond-de-rothschild.fr

Subsidiaries, Sub-subsidiariesand branches

GermanyEdmond de Rothschild Asset Management (France), Niederlassung Deutschland(formerly Edmond de Rothschild Saaet Management Deutschland)Opernturm 60306 Frankfurt am Main Tel.: (+49) 69 244 330 200 Fax: (+49) 69 244 330 215 www.edram.de

ChileEdmond de Rothschild Asset Management (Chile) Apoquindo 4001 oficina 305 Las Condes Santiago Tel.: (+56) 2598 99 00 Fax: (+56) 2598 99 01 www.edram.fr

Subsidiaries & Sub-subsidiaries

ParisEdmond de Rothschild Asset Management (France) 47, rue du Faubourg Saint-Honoré 75401 Paris Cedex 08 Tel.: (+33) 1 40 17 25 25 Fax: (+33) 1 40 17 24 42 www.edram.fr

Edmond de Rothschild Corporate Finance 47, rue du Faubourg Saint-Honoré 75401 Paris Cedex 08 Tel.: (+33) 1 40 17 21 11 Fax: (+33) 1 40 17 25 01 www.edrcf.com

Edmond de Rothschild Private Equity (France) 47, rue du Faubourg Saint-Honoré 75401 Paris Cedex 08 Tel.: (+33) 1 40 17 25 25 Fax: (+33) 1 40 17 23 91 www.edmond-de-rothschild.fr

Edmond de Rothschild Investment Partners 47, rue du Faubourg Saint-Honoré 75401 Paris Cedex 08 Tel.: (+33) 1 40 17 25 25 Fax: (+33) 1 40 17 31 43 www.edrip.fr

Edmond de Rothschild Assurances et Conseils (France)(formerly Assurances Saint-Honoré Patrimoine) 47, rue du Faubourg Saint-Honoré 75401 Paris Cedex 08 Tel.: (+33) 1 40 17 22 32 Fax: (+33) 1 40 17 89 40 www.ashp.fr

ChinaEdmond de Rothschild Asset Management(Hong Kong) Ltd Suite 4101-04, 41F, Exchange Square Two 8 Connaught Place Central - Hong Kong Tel.: (+852) 3926 5199 Fax: (+852) 3926 5008 www.edram.fr

Edmond de Rothschild Securities (Hong Kong) Ltd(formerly Edmond de Rothschild Asia Securities Limited) Suite 4101-04, 41F, Exchange Square Two 8 Connaught Place Central - Hong Kong Tel.: (+852) 3926 5199 Fax: (+852) 3926 5008

Edmond de Rothschild Investment Partners (Hong Kong) Ltd(formerly Edmond de Rothschild Asia Private Investors Limited)Suite 4101-04, 41F, Exchange Square Two 8 Connaught Place Central - Hong Kong Tel.: (+852) 3926 5199 Fax: (+852) 3926 5008

Edmond de Rothschild Investment Partners (Shanghai) Ltd(formerly Edmond de Rothschild China Limited)Room 02, 28F China Insurance Building166 East Lujiazui Road,Pudong New AreaShanghai 200120 Tel.: (+86) 21 6086 2503 Fax: (+86) 21 6086 2503

ADDRESSES


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Abroad

Subsidiaries, Sub-subsidiariesand branches (continued)

SpainEdmond de Rothschild Asset Management (France), Sucursal en España Paseo de la Castellana 55 28046 Madrid Tel.: (+34) 91 781 49 75Fax: (+34) 91 789 32 29 www.edram.fr

IsraelEdmond de Rothschild (Israel) Ltd(formerly Edmond de Rothschild Investment Services Ltd.) Alrov Tower 46, Rothschild Boulevard 66883 Tel-Aviv Tel.: (+972) 3 713 03 00 Fax: (+972) 3 566 66 89 www.edris.co.il

ItalyEdmond de Rothschild (France)Succursale italiana(formerly La Compagnie Financière Edmond de Rothschild Banque Succursale italiana)Palazzo ChiesaCorso Venezia 3620121 MilanTel.: (+39) 02 76 061 200Fax: (+39) 02 76 061 222

Edmond de Rothschild (Italia) S.G.R. SpAPalazzo ChiesaCorso Venezia 3620121 MilanTel.: (+39) 02 76 061 200Fax: (+39) 02 76 061 222

63

OTHER COMPANIES IN THE EDMOND DE ROTHSCHILD GROUP

Edmond de Rothschild Asset Management (Suisse) S.A.

SwitzerlandEdmond de Rothschild Asset Management (Suisse) S.A.(formerly La Compagnie Benjamin de Rothschild S.A.) 29, route de Pré-Bois CP 490 1215 Genève 15 Tel.: (+41) 58 201 75 00 Fax: (+41) 58 201 75 09www.edmond-de-rothschild.ch

Compagnie Benjamin de Rothschild Conseil S.A.

SwitzerlandCompagnie Benjamin de Rothschild Conseil S.A.29, route de Pré-BoisCP 4901215 Genève 15Tel.: (+41) 22 761 46 40Fax: (+41) 22 761 46 59www.cbrc.ch

Orox Asset Management

SwitzerlandOrox Asset Management16, rue de Hesse1204 GenèveTel.: (+41) 22 436 32 40www.orox.ch

Cogifrance

FranceCogifrance47, rue du Faubourg Saint-Honoré75401 Paris Cedex 08Tel.: (+33) 1 40 17 25 25Fax: (+33) 1 40 17 24 02

ADDRESSES

All rights reserved.Graphic Design: Vidale-Gloesener, LuxembourgPrinting: Ottweiler Druckerei und Verlag GmbH, Germany

The English version of this Annual Report is a free translation from the original, which was prepared in French. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions expressed therein, the original language version of the document in French takes precedence over the translation.

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ANNUAL REPORT 2014 - Edmond de Rothschild Group · 2019-05-11 · ANNUAL REPORT 2014 EDMOND DE ROTHSCHILD (EUROPE) 6 MESSAGE FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS Global growth