Consolidated Annual Accounts

Consolidated Balance Sheet

(before profit appropriation)	Notes	2010	2009
Assets
Banks	(1)	18,698	19,445
Short-term deposits	(2)	333,175	339,497
Derivative financial instruments	(3)	316,979	173,035
Loans to the private sector	(4), (8)	2,212,713	1,905,303
Loans guaranteed by the State	(5), (8)	56,292	36,556
Equity investments	(6)	637,802	489,232
Investments in associates	(7)	50,385	41,577
Interest-bearing securities	(9)	563,710	629,567
Subsidiaries	(10)	-	-
Tangible fixed assets	(11)	8,492	5,035
Deferred income tax assets	(32)	4,197	4,475
Current income tax receivables	(32)	8	22,285
Current accounts with State funds and other programs	(12)	-	1,301
Other receivables	(13)	31,461	45,535
Accrued income	(14)	71,150	59,528
Total assets		4,305,062	3,772,371
Liabilities
Short-term credits	(15)	278,590	147,930
Derivative financial instruments	(3)	44,431	30,995
Debt securities	(16)	51,667	50,937
Debentures and notes	(17)	2,313,600	2,129,554
Other liabilities	(18)	28,638	22,205
Current accounts with State funds and other programs	(19)	1,248	939
Wage tax liabilities		1,795	1,701
Deferred income tax liabilities	(32)	3,256	2,463
Accrued liabilities	(20)	50,958	39,766
Provisions	(21)	17,087	18,665
Total liabilities		2,791,270	2,445,155
Shareholders' equity
Share capital		9,076	9,076
Share premium reserve		29,272	29,272
Contractual reserve		665,173	545,327
Development fund		657,981	657,981
Available for sale reserve		118,097	53,688
Translation reserve		2,295	552
Other reserves		25,515	23,991
Undistributed profit		6,209	3,047
Shareholders' equity (parent)		1,513,618	1,322,934
Non-controlling interests		174	4,282
Total shareholders' equity	(22)	1,513,792	1,327,216
Total liabilities and shareholders' equity		4,305,062	3,772,371
Contingent liabilities	(33)	54,862	97,676
Irrevocable facilities	(33)	1,136,918	926,134
Loans and equity investments managed for the risk of the State^*		505,011	478,011

* See segment reporting paragraph.

1. Banks

	2010	2009
Banks	14,744	11,971
Mandatory reserve deposit with Dutch Central Bank	3,954	7,474
Total	18,698	19,445

Mandatory reserve deposits are not available for use in FMO's day-to-day operations.

2. Short-term deposits

	2010	2009
Collateral delivered	2,190	10,270
Financial institutions	280,990	154,275
Central Government	49,995	174,952
Total	333,175	339,497

3. Derivative financial instruments

FMO utilizes the following derivative instruments for both hedging and non-hedging purposes:

(Cross-currency) interest rate swaps are commitments to exchange one set of cash flows for another. Swaps result in an economic exchange of currency or interest rate exposure (for example, fixed rate or floating rate) or a combination of all these (i.e. cross-currency interest rate swaps).
Currency forwards represent commitments to purchase foreign and domestic currency, including undelivered spot transactions.

The following table summarizes the notional amounts and the fair values of the 'derivatives other than hedging instruments'. These derivatives are held to reduce interest rate risks and currency risks but do not meet the specified criteria to apply hedge accounting. The following table also includes derivatives related to the asset portfolio.

At December 31, 2010	Notional amounts	Fair value assets	Fair value liabilities
Derivatives other than hedging instruments:
> Currency swaps	272,116	779	-7,909
> Interest rate swaps	265,845	343	-621
> Cross-currency interest rate swaps	2,220,792	246,881	-35,744
Sub-total	2,758,753	248,003	-44,274
Derivatives related to asset portfolio	-	5,644	-
Total derivative assets (/liabilities) other than hedging instruments	2,758,753	253,647	-44,274

The increased notionals of derivatives other than hedging instruments are due to the hedging of interest rate and foreign exchange risks for loans in local currencies and funding in currencies other than euros and US dollars. FMO does not apply hedge accounting for these derivatives. FMO does not hold derivatives for trading purposes.

The following table summarizes the notional amounts and the fair values of the derivatives related to structured funding.

At December 31, 2010	Notional amounts	Fair value assets	Fair value liabilities
Derivatives structured:
> Interest rate swaps	3,738	-	-157
> Cross-currency interest rate swaps	9,196	1,142	-

Total derivative assets (/liabilities) structured	12,934	1,142	-157

The following table summarizes the notional amounts and the fair values of the derivatives designated as fair value hedges.

At December 31, 2010	Notional amounts	Fair value assets	Fair value liabilities
Derivatives designated as fair value hedges:
> Interest rate swaps	1,627,121	62,190	-

Total derivatives designated as fair value hedges	1,627,121	62,190	-
Total derivative financial instruments assets (/liabilities)	4,398,808	316,979	-44,431

For the year ended December 31, 2010, FMO recognized an ineffectiveness of €1.0 million net profit (2009: €0.2 million net loss) on the fair value hedges. The loss on the hedging instruments amounted to €12.8 million (2009: €7.2 million gain). The profit on hedged items attributable to the hedged risk amounted to €13.8 million (2009: €7.4 million loss).

The comparative figures for derivatives have been included in the following tables:

At December 31, 2009	Notional amounts	Fair value assets	Fair value liabilities
Derivatives other than hedging instruments:
> Currency swaps	655,132	1,204	-14,860
> Interest rate swaps	213,706	538	-299
> Cross-currency interest rate swaps	1,404,230	106,759	-13,377
Sub-total	2,273,068	108,501	-28,536

Derivatives related to asset portfolio	-	2,178	-
Total derivative assets (/liabilities) other than hedging instruments	2,273,068	110,679	-28,536

At December 31, 2009	Notional amounts	Fair value assets	Fair value liabilities
Derivatives structured:
> Interest rate swaps	38,234	60	-367
> Cross-currency interest rate swaps	77,208	2,938	-717

Total derivative assets (/liabilities) structured	115,442	2,998	-1,084

At December 31, 2009	Notional amounts	Fair value assets	Fair value liabilities
Derivatives designated as fair value hedges:
> Interest rate swaps	1,407,168	59,358	-1,375
Total derivatives designated as fair value hedges	1,407,168	59,358	-1,375
Total derivative financial instruments assets (/liabilities)	3,795,678	173,035	-30,995

4. Loans to the private sector

These loans to the private sector in developing countries are for the account and risk of FMO. The movements of the loans to the private sector can be summarized as follows.

	2010	2009
Balance at January 1	2,180,567	1,963,568
Disbursements	586,623	553,314
Re-class from equity investments	794	-
Repayments	-394,095	-273,077
Write-offs	-5,830	-8,497
Changes in amortizable fees	-7,797	-3,162
Exchange rate differences	148,895	-51,579
Balance at December 31	2,509,157	2,180,567
Value adjustments	-296,444	-275,264
Net balance at December 31	2,212,713	1,905,303

The following table summarizes the loans segmented by sector.

	2010	2009
Financial institutions	919,979	815,581
Energy	288,398	232,479
Housing	185,187	160,985
Global partners	669,702	552,789
Other	149,447	143,469
Net balance at December 31	2,212,713	1,905,303

	2010	2009
Gross amount of loans to companies in which FMO has equity investments	174,634	145,968
Gross amount of subordinated loans	466,736	381,879
Gross amount of non-performing loans	58,571	78,633

A loan is classified as non-performing when payments of interest or principle are past due by 90 days or more.

5. Loans guaranteed by the State

These loans in developing countries are individually guaranteed by the Dutch State for 80% to 95%. Any losses will be compensated by the State up to the guaranteed percentage. Payments by the State on guaranteed loans are deducted from the reported loan balance.

The loan portfolio guaranteed by the State comprises the loans issued by FOM. The movements can be summarized as follows.

	2010	2009
Balance at January 1	51,050	54,620
Disbursements	32,831	8,684
Repayments	-11,277	-6,312
Write-offs	-10,897	-5,501
Changes in amortizable fees	185	124
Exchange rate differences	583	-565
Balance at December 31	62,475	51,050
Value adjustments	-6,183	-14,494
Net balance at December 31	56,292	36,556

The following table summarizes the loans guaranteed by the State segmented by sector.

	2010	2009
Financial institutions	2,841	-
Energy	-	-
Housing	-	-
Global partners	-	-
Other	53,451	36,556
Net balance at December 31	56,292	36,556

Gross amount of subordinated loans	40,132	47,911
Gross amount of non-performing loans	6,303	14,675

6. Equity investments

These equity investments in developing countries are for the account and risk of FMO. The movements in net book value of the equity investments are summarized in the following table.

	2010	2009
Net balance at January 1	489,232	411,694
Purchases and contributions	150,153	113,642
Re-class to loans	-794	-
Re-class from/to associates	1,709	-2,180
Decrease due to deconsolidation BanyanTree Growth Capital L.C.C.	-1,166	-
Sales	-52,460	-46,439
Value adjustments	-10,967	-5,735
Changes in fair value	62,095	18,250
Net balance at December 31	637,802	489,232

	2010	2009
Equity investments at fair value	476,437	344,591
Equity investments at cost less impairment	161,365	144,641
Net balance at December 31	637,802	489,232

The following table summarizes the equity investments segmented by sector.

	2010	2009
Financial institutions	538,471	403,564
Energy	50,113	48,411
Housing	176	235
Global partners	987	1,372
Other	48,055	35,650
Net balance at December 31	637,802	489,232

7. Investments in associates

The movements in net book value of the associates are summarized in the following table.

	2010	2009
Net balance at January 1	41,577	44,362
Purchases and contributions	7,420	5,705
Re-class to/from equity investments	-1,709	2,180
Re-class from subsidiaries	12,346	-
Sales	-15,316	-11,722
Share in net results	4,291	-145
Translation differences	1,776	1,197
Net balance at December 31	50,385	41,577

	2010	2009
Associates at cost	4,175	12
Associates at equity method	46,210	41,565
Net balance at December 31	50,385	41,577

The following table summarizes FMO's share in the total assets, liabilities, total income and total net profit/loss of the associates.

	Associates at equity method	Associates at cost	Total
Total assets	85,916	4,175	90,091
Total liabilities	40,449	-	40,449
Total income	3,436	-	3,436
Total profit/loss	4,291	-	4,291

The associates valued at cost less impairment have incurred no cumulative impairment losses (2009: €2,433).

8. Movement in value adjustments

Movement in value adjustments FMO portfolio

	Guarantees	Loans	Total
Balance at January 1, 2009	20,141	240,425	260,566
Additions	5,437	75,131	80,568
Reversals	-9,056	-26,158	-35,214
Exchange rate differences	-285	-5,637	-5,922
Write-offs	-	-8,497	-8,497
Balance at December 31, 2009	16,237	275,264	291,501
Additions	11,708	45,551	57,259
Reversals	-1,924	-38,112	-40,036
Exchange rate differences	1,474	19,571	21,045
Write-offs	-	-5,830	-5,830
Balance at December 31, 2010	27,495	296,444	323,939

Movement in value adjustments on loans guaranteed by the State

2010	2009
Balance at January 1	14,494	15,117
Additions	3,000	5,026
Reversals	-414	-148
Write-offs	-10,897	-5,501
Balance at December 31	6,183	14,494

FMO's own risk participation with regard to FOM (5% to 20%) is not guaranteed. The guaranteed part is recorded under 'other receivables', and this amounts to €2,161 for the value adjustment recognized in 2010 (2009: €4,197). See also note 13.

9. Interest-bearing securities

This portfolio contains marketable bonds and private loans with fixed interest rates.

	2010	2009
Bonds (listed)	558,709	624,523
Private loans	5,001	5,044
Balance at December 31	563,710	629,567

All interest-bearing securities are classified as available for sale assets. The movements can be summarized as follows.

	2010	2009
Balance at January 1	629,567	569,037
Amortization premiums/discounts	-1,042	-109
Purchases	152,424	166,282
Sale and redemption	-220,346	-123,491
Revaluation	3,107	17,848
Balance at December 31	563,710	629,567

The interest-bearing securities have been issued by:

	2010	2009
Private parties:
Credit institutions	471,041	525,661
Other	43,350	57,971
Public bodies	49,319	45,935
Balance at December 31	563,710	629,567

10. Subsidiaries

This refers to the 100% interest in the share capital of Nederlandse Investeringsbank voor Ontwikkelingslanden N.V. (NIO). As per November 17, 2010, the 100% interest in NIO is transferred to the Dutch Ministry of Finance.

The share in the results of subsidiaries 2010 relates to the dilution of FMOs stake insubsidiary BanyanTree Growth Capital L.L.C in 2010. As at the balance sheet date BanyanTree is accounted for as an associate.

	2010	2009
Balance at January 1	-	1,135
Share in net results	30	44
Declared dividend	-30	-44
Write-off subsidiary	-	-1,135
Balance at December 31	-	-

11. Tangible fixed assets

	Furniture	ICT equipment	Leasehold improve-ment	Land and buildings due to business combination	Total 2010	Total 2009
Historical cost price at January 1	6,185	21,115	868	-	28,168	26,123
Accumulated depreciation at January 1	-5,282	-17,177	-674	-	-23,133	-19,157
Balance at January 1	903	3,938	194	-	5,035	6,966
Decrease historical cost price due to sale subsidiary TCX Investment Management Company B.V.	-27	-66	-	-	-93	-
Decrease accumulated depreciation due to subsidiary TCX Investment Management Company B.V.	5	10	-	-	15	-
Investments	100	1,202	2	-	1,304	2,060
Depreciation	-369	-2,377	-49	-	-2,795	-3,988
Accumulated depreciation on divestments	-	-	-	-	-	12
Divestments historical cost price	-	-	-	-	-	-15
Balance at December 31	612	2,707	147	-	3,466	5,035

Historical cost price at December 31	6,258	22,251	870	-	29,379	28,168
Accumulated depreciation at December 31	-5,646	-19,544	-723	-	-25,913	-23,133

Value at December 31	-	-	-	5,026	5,026	-
Balance at December 31	612	2,707	147	5,026	8,492	5,035

During 2010, FMO changed the estimated useful life of ICT equipment from three years to five years. The adjustment is accounted for prospectively as a change in estimate by adjusting depreciation in the current and future periods.

The land, buildings and equipments due to business combinations (€5,026) relate to Blauser S.A., which is recognized and consolidated as per December 31, 2010.

12. Current accounts with State funds and other programs

	2010	2009
Current account Access to Energy Fund	-	85
Current account MASSIF	-	1,174
Current account CD	-	42
Balance at December 31	-	1,301

This refers to the current account between FMO and the funds and programs managed on behalf of the Dutch State.

13. Other receivables

	2010	2009
Debtors related to sale of equity investments	997	19,980
Taxes and social premiums	378	344
To be declared on State guaranteed loans	6,707	15,450
Accrued management fees State funds	4,106	4,040
Current account NIO	-	26
Other receivables	19,273	5,695
Balance at December 31	31,461	45,535

14. Accrued income

	2010	2009
Accrued interest on loans	31,464	22,806
Accrued interest on swaps and other assets	39,686	36,722
Balance at December 31	71,150	59,528

15. Short-term credits

	2010	2009
Collateral received	231,431	111,679
Deposits placed by financial institutions	47,159	35,000
Other	-	1,251
Short-term credits	278,590	147,930

16. Debt securities

Debt securities include all non-subordinated debt, which has not been identified as debentures or other notes payable to banks. Debt securities do not include savings deposits.

Debt securities consist of loans and deposits raised in the international capital market from professional counterparties. The movements of debt securities are summarized as follows.

	2010	2009
Balance at January 1	50,937	96,560
Amortization of premiums/discounts	1,253	1,103
Proceeds from issuance	3,910	1,361
Redemptions	-3,415	-46,672
Changes in fair value	-1,018	-119
Exchange rate differences	-	-1,296
Balance at December 31	51,667	50,937

The following table summarizes the carrying value of the debt securities.

	2010	2009
Debt securities valued at fair value under hedge accounting	42,311	43,223
Debt securities valued at amortized costs	9,356	7,714
Balance at December 31	51,667	50,937

The nominal amounts of the debt securities are as follows.

	2010	2009
Debt securities valued at fair value under hedge accounting	34,140	37,327
Debt securities valued at amortized costs	9,356	7,714
Balance at December 31	43,496	45,041

17. Debentures and notes

Debentures and notes consist of medium-term notes under the GMTN program and public issues in the Swiss Franc (CHF) public market and Japanese Yen (JPY) Samurai market. The movements can be summarized as follows.

	2010	2009
Balance at January 1	2,129,554	1,198,614
Amortization of premiums/discounts	7,248	-973
Proceeds from issuance	432,888	1,505,635
Redemptions	-484,348	-593,554
Changes in fair value	-4,162	11,292
Exchange rate differences	232,420	8,540
Balance at December 31	2,313,600	2,129,554

The following table summarizes the carrying value of the debentures and notes.

	2010	2009
Debentures and notes valued at fair value under the fair value option	36,011	110,903
Debentures and notes valued at fair value under hedge accounting	1,636,883	1,383,930
Debentures and notes valued at amortized costs	640,706	634,721
Balance at December 31	2,313,600	2,129,554

The nominal amounts of the debentures and notes are as follows.

	2010	2009
Debentures and notes valued at fair value under the fair value option	35,923	112,988
Debentures and notes valued at fair value under hedge accounting	1,566,404	1,316,144
Debentures and notes valued at amortized costs	640,706	634,721
Balance at December 31	2,243,033	2,063,853

18. Other liabilities

	2010	2009
Amortized costs related to guarantees	881	876
Liabilities for guarantees	27,495	16,237
Other liabilities	262	5,092
Balance at December 31	28,638	22,205

The other liabilities include liabilities for staff costs and other costs.

19. Current accounts with State funds and other programs

2010		2009
Current account MASSIF	4	-
Current account Infrastructure Development Fund	-	688
Current account European Investment Bank	1,244	251
Balance at December 31	1,248	939

This refers to the current account between FMO and the funds and other programs managed on behalf of the Dutch State and other third parties.

20. Accrued liabilities

	2010	2009
Accrued interest on banks, debt securities and debentures and notes	40,292	36,148
Other accrued liabilities	10,666	3,618
Balance at December 31	50,958	39,766

21. Provisions

Amounts recognized in the balance sheet:

	2010	2009
Pension schemes	16,704	18,545
Other provisions	383	120
Balance at December 31	17,087	18,665

Pension schemes

FMO has established a number of pension schemes covering all its employees. Most of the pension schemes are average salary-defined benefit plans. FMO has outsourced the management of the pension assets to an asset manager. FMO has agreed strict guidelines with the asset manager. The assets of the funded plans are held independently of FMO's assets by the insurance company in separately administered funds. Independent actuaries value the schemes every year using the projected unit credit method. The latest actuarial valuations were carried out on December 31, 2010.

The amounts recognized in the balance sheet are as follows.

	2010	2009
Present value of funded defined benefit obligations	83,344	69,115
Fair value of plan assets	-74,023	-61,087
	9,321	8,028

Unrecognized actuarial gains (/losses)	7,383	10,517
Liability in the balance sheet	16,704	18,545

The movements in the fair value of plan assets can be summarized as follows.

	2010	2009
Fair value at January 1	-61,087	-47,269
Expected return on plan assets	-3,520	-2,858
Employer contribution	-4,529	-7,631
Plan participants' contributions	-860	-652
Actuarial (gains/) losses	-5,673	-4,270
Benefits paid	1,646	1,593
Fair value at December 31	-74,023	-61,087

Determination of expected return on assets
An important element for financial reporting is the assumption for return on assets (ROA). The ROA is updated at least annually, taking into consideration the pension plan's asset allocation, historical returns on the types of assets held in the fund, and the current economic environment. Based on these factors, it is expected that the fund's assets will earn an average percentage per year over the long term. This estimate takes into account a deduction for administrative expenses and investment manager's fees paid from the fund. For estimation purposes, it is assumed the long-term asset mix will be consistent with the current mix. Changes in the asset mix could impact the amount of recorded pension income or expense, the funded status of the plan, and the need for future cash contributions. The actual return on plan assets was 14.3% (2009: 8.5%).

The categories of the plan assets can be summarized as follows.

	2010 (%)	2009 (%)
Equities	23	22
Fixed income	77	77
Cash	0	1
	100	100

The movements in the present value of the defined benefit obligations can be summarized as follows.

	2010	2009
Present value at January 1	69,115	57,546
Service cost	3,817	3,307
Interest cost	3,620	3,427
Past service cost	-	-
Actuarial (gains/) losses	8,438	6,427
Benefits paid	-1,646	-1,592
Present value at December 31	83,344	69,115

The amounts recognized in the profit and loss account as net periodic pension cost are as follows.

	2010	2009
Current service cost	4,597	3,800
Interest cost	3,620	3,427
Actuarial (gains/) losses	-428	-902
Expected return on plan assets	-3,520	-2,858
	4,269	3,467
Contribution by plan participants	-860	-652
	3,409	2,815
Pension costs for defined contribution plans	-	-
Total annual expense	3,409	2,815

Cumulative recognized actuarial results

The cumulative net actuarial gains recognized from 2004 until 2010 amount to €429. The movement in the liability recognized in the balance sheet is as follows.

	2010	2009
Balance at January 1	18,545	23,853
Annual expense	3,409	2,815
Contributions paid	-4,706	-7,366
Other payments	-544	-757
Balance at December 31	16,704	18,545

The principal assumptions used for the purpose of the actuarial valuations at year-end were as follows.

	2010 (%)	2009 (%)
Discount rate	4.5	5.0
Expected return on plan assets	5.0	5.5
Expected long-term wage inflation	2.0	2.0
Future pension increases	2.0	2.2

The assumption for future pension increases is based on all pension schemes included in FMO's pension liability.

Other provisions

The other provisions are provisions for severance arrangements. This provision is determined using present value calculations.

	2010	2009
Balance at January 1	120	297
Addition	383	120
Release	-74	-12
Paid out	-46	-285
Balance at December 31	383	120

22. Shareholders’ equity

Share capital

The authorized capital amounts to €45,380, consisting of 51% A shares of €22.69 each, which are held only by the State, and 49% B shares, also of €22.69 each, which are held by private investors. The voting rights for A shares and B shares are equal. The equity of the company comprises three reserves, which result from the Agreement State-FMO of November 16, 1998. These are the share premium reserve, the development fund and the contractual reserve. As long as the company continues its activities, these reserves are not available to the shareholders. Upon liquidation of FMO these reserves fall due to the State, after settlement of the contractual return to the shareholders.

	2010	2009
AUTHORIZED SHARE CAPITAL
1,020,000 A shares x €22.69	23,144	23,144
980,000 B shares x €22.69	22,236	22,236
Balance at December 31	45,380	45,380

ISSUED AND PAID-UP SHARE CAPITAL
204,000 A shares x €22.69	4,629	4,629
196,000 B shares x €22.69	4,447	4,447
Balance at December 31	9,076	9,076

Share premium reserve

	2010	2009
Share premium reserve shareholder A, contributed on the transfer to the company of investments administered on behalf of the State at the time of the financial restructuring	8,061	8,061
Share premium reserve shareholder B, contributed on the transfer to the company of investments administered on behalf of the State on the financial restructuring	21,211	21,211
Balance at December 31	29,272	29,272

Other reserves

Dividend distributed in 2010 to shareholders of A shares and B shares was equal and amounted to €3.81 (2009: €3.01) per share.

Contractual reserve

The addition relates to that part of the annual profit that FMO is obliged to reserve under the Agreement State-FMO of November 16, 1998 (see 'other information').

Development fund

This special purpose reserve contains the allocation of risk capital provided by the State to finance the portfolio of loans and equity investments. In 2005, FMO received the final contribution (€37,260) to the development fund under the Agreement State-FMO of November 16, 1998.

Available for sale reserve

	Equity investments	Interest- bearing securities	Total available for sale reserve
Balance at January 1, 2009	28,244	-6,105	22,139
Fair value changes	21,995	18,653	40,648
Foreign exchange differences	-3,157	-	-3,157
Transfers due to sale	-1,130	-805	-1,935
Transfers due to impairment	542	-	542
Tax effect	-	-4,549	-4,549
Balance at December 31, 2009	46,494	7,194	53,688
Fair value changes	54,591	3,960	58,551
Foreign exchange differences	18,436	-	18,436
Transfers due to sale	-15,963	-853	-16,816
Transfers due to impairment	5,031	-	5,031
Tax effect	-	-793	-793
Balance at December 31, 2010	108,589	9,508	118,097

Included in the available for sale reserve is an amount of €178 (2009: €11,214) for fair value changes in equity investments that were previously impaired.

Translation reserve

	2010	2009
Balance at January 1	552	-3,239
Change	1,565	965
Release due to sale	178	2,826
Balance at December 31	2,295	552

Non-controlling interests

BanyanTree Growth Capital L.L.C.	2010	2009
Balance at January 1	4,282	-
Acquisition by third party of non-controlling share	-	4,889
Share in AFS reserve	-	-148
Share in net profit	-	-231
Share in translation reserve	-	-228
Dilution of FMO's share	-4,282	-
Balance at December 31	-	4,282

Blauser S.A.	2010	2009
Balance at January 1	-	-
Acquisition by third party of non-controlling share	8	-
Share in net profit	166	-
Balance at December 31	174	-

32. Income taxes

Income tax by type

	2010	2009
Current income taxes	-24,872	-798
Deferred income taxes	-278	-534
Total income tax	-25,150	-1,332

The reconciliation of the statutory income tax rate to the effective income tax rate is as follows.

	2010	2009
Profit before taxation	151,371	61,280

Income taxes at statutory rate of 25.5% (2009: 25.5%)	-38,600	-15,626
Increase/decrease resulting from:
> Settlement with local withholding taxes	1,147	1,270
> Non-taxable income and expense (participation exemption facility)	11,702	5,405
> Tax adjustments to prior periods	615	7,776
> Other differences	-14	-157
Income tax	-25,150	-1,332

Effective income tax rate

16.6%

2.2%

Current income tax receivables

The company paid €2,525 (2009: €58,824) to tax authorities. The remaining current income tax receivables amount to €8 (2009: €22,285). There were no unused tax losses and tax credits per year-end 2010.

Deferred tax

FMO's deferred income tax assets and liabilities are summarized as follows.

	2010	2009
Deferred tax assets
Group-specific value adjustments	-	-
Pension provision	3,371	3,786
Fair value measurement of interest-bearing securities	-	-
Depreciation fixed assets	826	689
Total deferred tax assets	4,197	4,475

Deferred tax liabilities
Temporary value adjustments on equity investments	-	-
Fair value measurement of interest-bearing securities	-3,256	-2,463
Total deferred tax liabilities	-3,256	-2,463
Net balance at December 31	941	2,012

During 2009, the deferred tax asset related to the group-specific value adjustment was realized.

33. Commitments and contingent liabilities

The company issued guarantees regarding repayments of principal and interest for a number of projects. The nominal amount of the guarantees is valued at the exchange rate as per December 31, 2010 and December 31, 2009.

	2010	2009
Contingent liabilities
Effective guarantees	83,238	114,789
Less: provisions, amortized costs and obligations for guarantees (presented under other liabilities)	-28,376	-17,113
Total contingent liabilities	54,862	97,676

The provisions and obligations (including amortizable fees) relating to guarantees amount to €28,376 (2009: €17,113) and have been recorded under other liabilities. Of the liabilities for guarantees €0 (2009: €460) is covered by a counter guarantee of the State.

	2010	2009
Irrevocable facilities
Contractual commitments for disbursements of:
> Loans	646,137	509,461
> Equity investments	408,916	393,802
> Contractual commitments for guarantees	81,865	22,871
Total irrevocable facilities	1,136,918	926,134

Annual Report 2010