Vo

lito

AB

| An

nu

Al

Re

po

Rt

2010

Volito AB, Södra Förstadsgatan 4, Se-211 43 Malmö tel +46 40 660 30 00 fax +46 40 660 30 20 e-mail info@volito.se internet www.volito.se corporate identity number 556457-4639

Volito AB is an investment company operating within Aviation, Real Estate, Industry and Structured Finance. The company creates value through long-term, active ownership based on genuine expertise within its lines of business.

Value growth is generated both through current earnings and the increase in value of the company’s investments.

Volito AB | GRoup pReSentAtion AnnuAl RepoRt 2010

VOLITO_ÅR_Omslag_2010_cs5.indd 1 2011-02-28 11.51

this english version is a translation of the Swedish original. in case of any dispute as to the interpretation of this document, the Swedish version shall prevail.

he cover this year is painted by John Stockwell,

born 1958 in Boston. John has been living in Sweden

for ten years. His dramatic paintings with nature

as a base are witnesses of a huge love and passion

for the southern Swedish landscape.

over the years John has had several exhibitions

in the uSA, europe and Sweden. His work is

represented in numerous major collections,

i.e. Fidelity trust, iBM, Merril lynch and

Harvard Business School.

John Stockwell

– Apple orchard in Vitaby.

pastel on paper 2010

TAddressesVolito ABSödra Förstadsgatan 4, Se-211 43 Malmötfn +46 40 660 30 00 Fax +46 40 660 30 20www.volito.se

Volito Aviation ABSödra Förstadsgatan 4, Se-211 43 Malmötfn +46 40 660 30 00 Fax +46 40 30 23 50www.volito.aero

Volito Fastigheter ABSödra Förstadsgatan 4, Se-211 43 Malmötfn +46 40 664 47 00 Fax +46 40 664 47 19www.volitofastigheter.se

Volito industri ABSödra Förstadsgatan 4, Se-211 43 Malmötfn +46 40 660 30 00 Fax +46 40 660 30 20www.volito.se

VOLITO_ÅR_Omslag_2010_cs5.indd 2 2011-02-28 11.51

2007 Björn Wessman2004 K G Nilsson

2008 Emanuel Bernstone2005 Martin Wickström

2009 Helmtrud Nyström2006 Anders Österlin

The VoliTo Group– 20 years of long-term investment

5T

HE

GR

OU

P

Volito is a privately owned investment group headquartered

in Malmö. The Group’s story begins in 1991 when Karl-Axel

Granlund acquires and merges two established aircraft leasing

companies. The new company is soon given the name Volito –

“to fly and aspire to new heights” – and operates with great success.

Gradually, the company expands into other business areas.

Aircraft leasing is still a significant part of the business with

aircraft placed all over the world. The majority of the fleet is

jointly owned with the American company, Goldman Sachs.

Other business areas are Real Estate, with a growing portfolio

in the Malmö region; Industry, consisting of several Swedish

hydraulics companies, and Structured Finance, which comprises

of Nordkap Bank AG in Switzerland. The Volito Group also

contains substantial holdings in listed companies with influence

at board level and ownership interests in associated companies

and jointly-owned companies. In total, the Volito Group has

adjusted equity of SEK 1 771 million.

Volito’s overall objective is to create long-term, balanced value

growth for the shareholders, both through current income from

operational activities and value growth in the Group’s invest-

ments. The Group’s success is based on its staff members’ ability

to assess and manage capital-intensive investments, and well-

documented experience in the spreading of risk. The Group is

characterised by a high degree of independence and integrity.

The Volito Group takes a long-term perspective and strives for

investments that are based on sector knowledge, experience,

relations and mutual trust.

6

2010 in brief• The Volito Group reported a pre-tax profit

for 2010 of SEK 121.7 million, which is 47 % higher

than the previous year. The rise in the stock

market in 2010 has increased the value of Volito’s

share portfolio. On 31 December 2010 the Volito

Group’s adjusted equity amounted to SEK 1 771.1

million, which represents an increase of 21 %.

• VGS Aircraft Holding (Ireland) Limited (VGS)

made a profit of USD 12.9 million before tax.

On 31 December 2010 VGS had a fleet of 44

aircraft with a value of USD 836 million,

representing an increase of 15 %. The Volito

Aviation AB Group made a profit of

SEK 37.2 million (71.0) before tax.

• Volito Fastigheter reported a pre-tax profit for the

year of SEK 43.9 million (36.2). The market value

of the portfolio at year-end 2010 was SEK 1 603.1

million, which is an increase of 8.5 %. Volito’s

holding in Peab AB (publ) has grown in value with

an increase of around 30 % including received

dividends. The Peab Group’s turnover rose by 9 %

and the reported operating profit was SEK 1 563

million, which is 2 % lower than the previous year.

• Volito Industri has continued its expansion in

the Swedish Hydraulics market. HydX has grown

and established itself in the market. At the end

of the year Volito Automation acquired Hydro

Swede, and began to establish Hydraulic Supplier

under own management. Volito’s holding in CTT

Systems (publ) at year-end was at a similar share

price level as the previous year-end. The company

made a loss after tax of SEK -2.3 million.

• In2010Nordkap Bank AG consolidated its loan

portfolio and focused on the problem loans that

arose during the financial crisis. The bank has

succeeded in increasing the number of customers

who have made a considerable recovery. This, in

combination with the improved credit market, has

resulted in a reduced loan portfolio and improved

liquidity. Nordkap Bank AG reported a profit

before tax for 2010 of CHF 0.5 million (0.3).

7T

HE

GR

OU

P

VoliTo AB

AViATioN

iNDuSTrY

reAl eSTATe

STruCTureD FiNANCe

Business Area Aviation consists of Volito Aviation AB, a holding company that, via its subsidiaries, acquires, finances and leases out commercial aircraft all over the world. The fleet consists of 49 aircraft, which are chiefly owned by Ireland-based VGS Aircraft Holding – a joint venture between Volito and Goldman Sachs Group. Volito Aviation Services AB is responsible for managing the aircraft of both VGS and Volito Aviation AB.

Business Area Real Estate consists of the subsidiary, Volito Fastigheter AB, which owns and manages com-mercial properties in the Malmö region. The portfolio comprises of 23 properties, divided between offices, retail, industry and warehousing, with a total area of around 104 000 m2. The business area also contains Volito’s holding in Peab AB (publ), which is active in the construction and civil engineering field and listed on OMX Nordic Exchange Stockholm.

Business Area Industry consists of HydX AB, Hydro Swede AB, Hydratech AB and Hydraulic Supplier i Norden AB, all of which operate under the parent company, Volito Automation. The companies supply systems, aggregates and components for industrial, mobile and marine hydraulics. The business area also contains an active ownership interest in CTT Systems, which deve-lops humidity control systems for aircraft. CTT Systems is on the Small Cap listing of OMX Nordic Exchange.

Business Area Structured Finance consists of the Swiss bank Nordkap Bank AG, of which Volito owns 40%. Nordkap Bank AG is an independent commercial bank, specialising in structured finance with a focus on emerging markets around the world. Nordkap Bank AG finances infrastructure projects, such as power plants, roads, railways, waste management and telecommuni-cation networks. Other investment areas include bio-fuels, oil extraction, mining and hard commodities.

8

1 750

1 500

1 250

1 000

750

500

250

01 02 03 04 05 06 07 08 09 10

T he rise in the stock market during 2010 has increased the value of Volito’s share portfolio.

At year-end 2010, the Volito Group’s adjusted equity amounted to SEK 1 771.1 million, which represents an increase of 21 %. The Group reported a pre-tax profit for 2010 of SEK 121.7 million, which is 47 % higher than the previous year.

Business Area AviationTough times continued for the aviation sector in 2010. However, in the second half of the year we noted a considerable improvement in business conditions, increased traffic volumes and more positive financial figures from the airlines. Volito Aviation has succeeded in strengthening its position and enters 2011 without any significant refinancing exposure. All aircraft, with the exception of one Fokker 50, are commited for lease and eight new leasing agreements were signed during the year, allowing Aviation to broaden its market to Germany, Israel, Lithuania, Belgium, Latvia and the Philippines. Three aircraft have been taken back from customers, who for a variety of

reasons could not meet their payment obligations. VGS Aircraft Holding Ltd (VGS) has acquired three aircraft, a used Boeing 737-800 from Transavia (Netherlands) and two newly produced Airbus 320s from Air Berlin. VGS now has a fleet of 44 aircraft with a value of USD 836 million, which represents an increase of 15 %. VGS made a pre-tax profit of USD 12.9 million. The Volito Aviation AB Group’s pre-tax profit was SEK 37.2 million. Challenges remain regarding the placing and refinancing of aircraft, but we can expect a growth period in traffic volumes and an improving business climate.

Business Area Real EstateVolito Fastigheter reported another year of strong performance. The company is stable after the recession of recent years, which have been devoted to consolidation and organisational improvements. During the second half of 2010 there were again opportunities for acquisitions, and Volito Fastigheter began a new phase of expansion. In late 2010 and early 2011 seven new properties were acquired with attractive locations

in central Malmö. The transactions mean a 30 % increase in the market value of the real estate portfolio. As we enter 2011 the market situation is optimistic, dynamic and conditions for growth are good – as a result we expect continued expansion. The property leasing market in the Öresund Region remains strong and the property value trend is upwards. During 2011 we can expect stable demand for commercial premises in the region.

Volito’s holding in Peab AB (publ) developed positively in value terms with an increase of around 30 % including received dividend. The Peab Group’s turnover increased by 9 % and the reported operating profit was SEK 1 563 million, which is 2 % lower than the previous year. Although there was a subdued start to 2010 for all business areas, higher levels of activity were noted during the rest of the year. The construction business has displayed a strong recovery and at year-end the company had its largest order book ever. Peab assesses the outlook for 2011 as good with increased demand for housing and commercial premises.

Comments from the CeoOverall, 2010 was a good year for the Volito Group. The operations developed according to plan, profits improved considerably compared with the previous year and the value of our portfolio reached a new all-time high. The relatively low level of business activity in the first half of 2010 changed for the better, with an increasing number of transactions towards the end of the year and into 2011. Satisfying developments included new acquisitions in Aviation and Real Estate, and continued expansion in Business Area Industry.

SEK million The Volito Group, adjusted equity

Volito expects to be able to expand its activities on several fronts during 2011”

Johan Lundsgård CEO and President, Volito AB

9

The Volito Group, Ten-year summary

SEK million 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001

Result before taxes 121.7 82.5 -28.4 600.9 144.5 79.0 30.7 70.7 -6.5 -13.7

Adjusted equity 1 771 1 465 1 121 1 518 1 273 935 663 563 497 496

Return on adjusted equity, (%) 23 33 -23 22 37 42 19 14 0 12

Equity ratio, (%) 46 51 45 52 26 23 26 25 25 34

Assets 2 939 2 821 2 930 2 748 4 010 3 575 2 267 2 029 1 792 1 290

Definitions

Return on equityResult after tax in relation to average equity

Adjusted equityEquity and surplus values in real estate and listed shares with reduction for deferred tax

Return on adjusted equityChange in value on adjusted equity before dividends to shareholders

Adjusted equity ratioAdjusted equity in relation to total assets including surplus values

Business Area IndustryVolito Industry has developed in line with our expectations and continued its expansion in the Swedish hydraulics market. HydX has grown, become established and set up a sales office in Gothenburg. From the second quarter the flow of orders has been good, which will generate rising revenues in 2011. In late 2010, Volito Automation also acquired the Stockholm-based company Hydro Swede, and began to establish Hydraulic Supplier under own management in Örnsköldsvik and Skellefteå. Hydratech in Smålandsstenar was acquired in January 2011. All the companies are closely related to HydX and the ambition is to become a leading supplier of industrial and mobile hydraulics that covers the Swedish market both in geographical terms and the scope of the customer offering. The Swedish engineering industry has performed strongly in 2010 and demand for mobile hydraulics has been rising for some time. Our assessment is that there will also be increased demand and a higher inflow of orders on the industry side in the first half of 2011.

At year-end our holding in CTT Systems AB (publ) was around the same share price as the previous year-end. CTT develops advanced solutions for regulating humidity on board aircraft and interest in their

technology continues to rise. In recent years CTT has achieved success in selling direct to aircraft manufacturers and it is here that future potential lies. Both Boeing and Airbus use CTT’s systems in their new aircraft. The company made a loss after tax of SEK -2.3 million. It is our conviction that CTT Systems will continue to develop positively and in time will become a very profitable investment.

Business Area Structured FinanceDuring 2010 Nordkap Bank AG has consolidated its loan portfolio and focused on customer credit problems that arose during the financial crisis. We decided early in the crisis to take a long term view and work actively together with our clients. In the ongoing reconstruction process the bank has succeeded in increasing the number of customers who have achieved a good recovery. The efforts made in recent years mean that the bank has an increasingly healthy portfolio and can resume its focus on core activities. Nordkap Bank AG made a pre-tax profit of CHF 0.5 million for 2010. The financial crisis of recent years can be used to show the Volito Group’s strength and stability. We have a position of trust in managing our lenders’ money and we are diligent in honouring that trust. Without pressure from external forces, such

as a demanding stock market or risk capitalists who expect rapid returns, we can act calmly and cautiously when the times requires it, and move forward again when the markets have stabilised.

After the consolidation in recent years at various levels of the Group we have seen in the second half of 2010 an improved business climate with growing optimism. We have noted a significant increase in both demand and the range of business transactions. Therefore, Volito expects to expand its activities on several fronts during 2011.

In conclusion, I would like to take this opportunity to thank our customers, staff, business partners and owners for their good cooperation during the past year.

Johan LundsgårdCEO and President

TH

E G

RO

UP

10

11A

VIA

TIO

N

b u s i n e s s a r e a

AViATioN Business Area Aviation consists of wholly-owned Volito Aviation AB,

a holding company that acquires, finances and leases out commercial aircraft via its subsidiaries. The internal resources of Volito Aviation bring together many years of experience in aircraft leasing with specialist expertise in areas such as law, marketing, administration, maintenance, financing and risk management.

One of Volito Aviation’s strengths is the ability to compose a balan-ced, fuel-efficient fleet. Volito’s fleet comprises mainly of twin-engine, fuel-efficient narrow body aircraft such as the Airbus 320 and Boeing 737-800 – assets with long economic lives that have proven to be very resilient in recessions. The aircraft are based on several continents and spread over a number of different markets, ensuring stability and the power to act, even in a fluctuating business climate.

Today, the fleet is made up of 49 aircraft, of which 44 are owned by Ireland-based VGS Aircraft Holding – a joint venture between Volito and Goldman Sachs Group. Five aircraft are owned by other subsidia-ries within the Volito Aviation Group. Volito Aviation Services AB is responsible for managing the aircraft of both VGS and Volito Aviation AB. Business Area Aviation acts strategically with a long-term per-spective and plans to continue its expansion with new acquisitions.

12

A V I A T I O N A B

300

250

200

150

100

50

03 04 05 06 07 08 09 10

Going for growth in a recovering marketAviation has been one of the markets hit hardest by the recession of recent years. A well-balanced approach to risk taking and the ability to secure leasing agreements and financing, even in difficult times, has enabled Volito Aviation to emerge confidently from the financial crisis.

SEK million Result before tax

New agreements and acquisitions, despite a subdued market, is a sign of strength”

Siggi Kristinsson CEO, Volito Aviation

was a year in which the after-effects of

the recession continued to impact on business activities. A weak market meant continued tough conditions for securing leasing agreements and financing aircraft transactions. Our operations are directly linked to the business climate affecting passenger airlines, as the entire fleet consists of passenger aircraft. With this in mind, increases in traffic volumes and the improved financial performance of airlines are seen as positive signs of recovery. In addition there are positive trends indicating an improvement in the business climate for the financial and capital markets.

Thanks to the tireless efforts and commitment of my colleagues, we end

2010 with no significant refinancing exposure and all but one Fokker 50 committed for lease. This is an outstanding performance considering the difficult business conditions. There is also the added satisfaction that we have succeeded in securing several new aircraft acquisitions and increased our aircraft fleet.

Three aircraft were acquired during the year, all in sale and leaseback transactions. A used Boeing 737-800 was acquired by VGS Aircraft Holding Ltd (VGS) from Transavia (Netherlands) and two newly produced Airbus 320s were acquired from Air Berlin (Germany).

Eight new leasing agreements have been entered into by VGS for aircraft

placed with Zest Air (Philippines), Belle Air (Albania), Brussels Airlines (Belgium), Israir (Israel), Small Planet Airlines (Lithuania), Comair (South Africa), Jet2 (United Kingdom) and SmartLynx (Latvia). Volito Aviation AB had to take back three aircraft during 2010; two Fokker 50s from Denim Air (Netherlands), due to bankruptcy, and one Boeing 737-400 from Blue Air (Romania), as the client could not meet payment obligations.

New leasing agreements for aircraft in Germany, Israel, Lithuania, Belgium, Latvia and the Philippines mean we have also expanded geographically. This expansion is significant as our business is to a great extent concerned with the managing of financial risks. The spreading of the fleet in

2010

13A

VIA

TIO

N

Volito Aviation AB, Five-year summary

SEK (USD) million 2010 2009 2008 2007 2006

Revenues 102.0 (14.2) 113.5 (14.8) 163.7 (24.9) 321.6 (46.8) 396.1 (52.9)

Profit before tax 37.2 (6.9) 71.0 (10.6) 82.5 (16.2) 356.9 (45.2) 103.2 (10.8)

Return on equity, (%) 3.0 -0.1 9.9 54.7 26.7

Equity 460 (57) 485 (52) 532 (52) 437 (51) 260 (27)

Assets 1 117 (146) 1 115 (131) 1 159 (133) 977 (121) 2 670 (342)

Volito Aviation AB – Wholly-owned subsidiary of Volito AB. The company is Volito’s holding company for aircraft leasing.

The Goldman Sachs Group Inc – USA-basedinvestment bank and Volitos’ partner in VGS.

Volito Aviation Services AB – Management company with responsibility for the aircraft fleet of VGS and Volito Aviation AB.

Volito Aviation AG – Swiss holding company foraircraft leasing.

VGS Aircraft Holding (Ireland) Limited – Joint venture between Volito and Goldman Sachs with an aim to acquire, finance and lease out aircraft. As of 31 December 2010, VGS owned 44 aircraft.

Structure Volito Aviation

Volito Aviation AB

Volito Aviation Services AB

Other subsidiaries5 aircraft with a book value

of SEK 204 million

The Goldman SachsGroup Inc.

(NYSE:GS)

VGS Aircraft Holding (Ireland) Limited44 aircraft with a book value of USD 836 million

VolitoAviation AG

80% 100% 51%

50%50%

20%

Management Agreement

many different countries on several continents makes us less sensitive overall to regional changes in the business climate.

At year-end the VGS fleet consisted of 44 aircraft with a book value of USD 836 million. Liabilities linked to the fleet amounted at year-end to USD 509 million. Volito Aviation owns directly five aircraft with a book value of SEK 204 million. Fleet-related liabilities amounted at year-end to SEK 47 million. The fleet consists entirely of narrow body aircraft, of which 88 % are next generation aircraft. These aircraft have a long economic lifetime, are among the most stable in value fluctuation terms, and considered the most liquid asset in this market.

VGS made a profit before tax in 2010 of USD 12.9 million. The Volito Aviation AB Group, (which reports VGS as a joint venture) made a pre-tax profit in 2010 of SEK 37.2 million. Net profit after tax and minority interests was SEK 14.8 million.

Predictions relating to the length of a recession are very difficult. Previous experience in the aviation sector suggests business cycles of 6-10 years. Given that the industry is now coming out of a recession, good grounds exist for expecting a growth period in traffic volumes over the next 4-6 years, which will result in a considerably improved business climate.

There is tough competition in our market, so it is essential that we

remain focused. Although VGS has performed relatively well in 2010, the leasing and refinancing markets will remain difficult for older assets in 2011 and that is likely to affect financial performance in 2011.

Several challenges remain, but I am optimistic as we enter 2011. My colleagues have succeeded in maintaining stability in the business, managing to refinance all agreements while also achieving valuable new acquisitions at a time when many observers thought such results were impossible. These are achievements that highlight the clear strengths of our company as we prepare for future challenges.

Bas

ed o

n o

rigi

nal

USD

val

ues

.

14

The Aircraft Fleet December 31st 2010

Geographical spread in 2010

Aircraft MSN/year Engine Model Registration Operator Lease Expiry

Boeing 737-5Y0 24900/1991 CFM56-3B1 LV-BDV Aerolineas Argentinas, Argentina Mar 2011Boeing 737-5Y0 25176/1991 CFM56-3B1 LV-BEO Aerolineas Argentinas, Argentina June 2011Boeing 737-5Y0 24899/1991 CFM56-3B1 LV-BDD Aerolineas Argentinas, Argentina Nov 2011Airbus 320-200 4463/2010 CFM56-5B4/3 D-ABFL Air Berlin, Germany June 2012Airbus 320-200 4478/2010 CFM56-5B4/3 D-ABFM Air Berlin, Germany June 2012Boeing MD-82 49269/1984 PW JT8D-217C N249AA American Airlines, USA Dec 2013Boeing MD-82 49270/1984 PW JT8D-217C N251AA American Airlines, USA July 2014Airbus 320-233 561/1995 IAE V2527E-A5 F-ORAE Belle Air, Albania Oct 2011Airbus 320-233 558/1995 IAE V2527E-A5 F-ORAD Belle Air, Albania Oct 2011Airbus 319-132 1098/1999 IAE V2524-A5 F-ORAG Belle Air, Albania Apr 2012Airbus 319-112 1102/2000 CFM56-5B6/2P OO-SSD Brussels Airlines, Belgium Apr 2016Airbus 319-122 1068/1999 CFM56-5B6/2P F-GYFM CCM Airlines, France Oct 2014Airbus 319-122 1145/1999 CFM56-5B6/2P F-GYJM CCM Airlines, France Oct 2014Boeing 737-800 28373/1998 CFM56-7B26 ZS-ZWO Comair, South Africa Mar 2013Boeing 737-800 28374/1998 CFM56-7B26 ZS-ZWQ Comair, South Africa Mar 2014Boeing 737-71Q 29047/1999 CFM56-7B22 HP-1369CMP Copa, Panama Oct 2011Boeing 737-71Q 29048/1999 CFM56-7B22 HP-1370CMP Copa, Panama Dec 2011Airbus 320-231 230/1991 IAE V2500-A1 UR-DAB Donbassaero, Ukraine Apr 2015Boeing 737-46J 27171/1993 CFM56-3C1 VP-BQG Globus, Russia Mar 2014Airbus 320-231 308/1992 IAE V2500-A1 VT-EVS Air India, India Mar 2010Airbus 320-231 314/1992 IAE V2500-A1 VT-EVT Air India, India Mar 2010Boeing 737-800 28375/1998 CFM56-7B26 G-GDFC Lease signed with Jet2.com, Great Britain Dec 2014Airbus 320-232 2531/2005 IAE V2527-A5 VT-KFF Kingfisher, India Sep 2012Airbus 319-112 1283/2000 CFM56-5B6/2P EI-DEZ Meridiana Fly, Italy Apr 2015Airbus 319-112 1305/2000 CFM56-5B6/2P EI-DFA Meridiana Fly, Italy May 2015

**

* Extended lease

15A

VIA

TIO

N

Owned by Volito Aviation AB Owned by VGS

Aircraft MSN/year Engine Model Registration Operator Lease Expiry

Airbus 320-232 872/1998 IAE V2527-A5 B-6256 Sichuan Airlines, China July 2011Boeing 737-3L9 27061/1992 CFM56-3B2 LY-FLE Small Planet, Lithuania Nov 2011Airbus 320-211 426/1993 CFM56-5A1 YL-LCH Lease signed with SmartLynx, Latvia Nov 2011Airbus 321-200 1276/2000 IAE V2533-A5 EC-HPM Spanair, Spain Nov 2014Airbus 320-232 1652/2001 IAE V2527-A5 PR-MBQ TAM, Brazil Oct 2013Airbus 320-232 1802/2002 IAE V2527-A5 PR-MBR TAM, Brazil Feb 2014Airbus 319-132 1575/2001 IAE V2524-A5 PR-MBI TAM, Brazil Mar 2014Airbus 320-232 1835/2002 IAE V2527-A5 PR-MBS TAM, Brazil Apr 2014Airbus 320-232 1591/2001 IAE V2527-A5 PR-MBX TAM, Brazil June 2014Airbus 320-232 1827/2002 IAE V2527-A5 PR-MBZ TAM, Brazil Sep 2014Airbus 320-232 1891/2002 IAE V2527-A5 PR-MBY TAM, Brazil Nov 2014Airbus 319-112 629/1996 CFM56-5B6/2 CS-TTQ TAP, Portugal Mar 2012Boeing 757-2Y0 26160/1993 RR RB211-535E4 G-FCLJ Thomas Cook, Great Britain Apr 2013Boeing 757-2Y0 26161/1993 RR RB211-535E4 G-FCLK Thomas Cook, Great Britain Apr 2013Boeing 737-800 30389/2000 CFM56-7B26 PH-HZJ Transavia, The Netherlands Nov 2013Boeing 737-3G7 24010/1988 CFM56-3B1 N303AW US Airways, USA Nov 2011Boeing 737-3G7 24009/1988 CFM56-3B1 N302AW US Airways, USA Dec 2011Airbus 320-200 803/1998 IAE V2527-A5 N649AW US Airways, USA Mar 2013Airbus 319-132 1074/1999 IAE V2524-A5 RP-C8990 Zest Airlines, Philippines Aug 2013Boeing 737-4C9 25429/1992 CFM56-3C1 SE-RID / SP-ENF Lease signed with Enter Air, Poland,

to be delivered in Jan 2011Fokker 50 20210/1992 PWC PW125B SE-MEI Letter of intentFokker 50 20252/1991 PWC PW125B PH-KXM ParkedBoeing 737-33A 24094/1989 CFM56-3B2 LN-KKS Norwegian, Norway Oct 2011Boeing 737-4C9 26437/1992 CFM56-3C1 UR-GAV Ukraine Int. Airl, Ukraine Mar 2012

16

17R

EA

L E

ST

AT

E

b u s i n e s s a r e a

reAl eSTATe Business Area Real Estate consists of the wholly-owned subsidiary,

Volito Fastigheter AB. The company owns and manages commercial properties in the Malmö region. The business is characterised by a long-term approach, efficient property management, a high level of service and close relations with customers and partners. At present the portfolio consists of 23 properties in the Malmö region, which are all strategically located close to service functions, access roads and other communications. The portfolio is divided between offices, retail, industry and warehousing, and the total area amounts to around 104 000 m2.

Volito Fastigheter has continuously developed its portfolio in order to strengthen its presence in the Malmö region’s most attractive areas. Looking forward, the company intends to continue its development and expansion. The aim is not to be the market’s biggest player, but to position the company as the best in terms of management and customer relations.

Business Area Real Estate also contains Volito’s holdings in Peab AB (publ). Peab is active in the construction and civil engineering field and listed on OMX Nordic Exchange Stockholm.

18

600

500

400

300

200

100

01 02 03 04 05 06 07 08 09 10

SEK million Adjusted equity

The market situation is optimistic and we are well prepared for continued expansion”

Per Hammarström CEO, Volito Fastigheter

ur assessment is that conditions for new property transactions have become significantly better

in the second half of 2010. We are now leaving a period in which the market for real estate transactions has in general been completely closed. Looking forward we can expect more properties to be on the market and an increasing interest in financing property transactions from the banks’ side.

The acquisition of S:t Peter 3 with an area of 2 850 m2 was completed at the end of 2010. S:t Peter 3, built in 1881, is one of the classic properties on Östergatan about 200 metres from Malmö’s main square, Stortorget, and houses a well-know lawyer’s office. At the start of 2011 we acquired six properties, a total area of 16 800 m2, for around SEK 390 million. This is the biggest single transaction since the company was formed. Overall, the new

acquisition represents an increase in our portfolio of around 30 %, in terms of market value.

Four of the new properties, Laxen 23, Söderport 8, Stjärnan 10 and Claus Mortensen 29 are attractively located along the stretch considered as Malmö’s absolute centre, from the Triangle down to Stortorget. The other two, Söderhavet 5 and 6, are located in Nyhamnen, one of the region’s most expansive and exciting areas. Nyhamnen offers similar potential to Skeppsbron, the university campus at Hjälmarekajen, Dockan and Västra Hamnen, areas that in the last 10 years have been developed with attractive and exclusive seafront properties for both residential and commercial uses. In the next few years Nyhamnen will undergo a similar transformation. These districts are also close to the Central Station and City Tunnel, which opened in early December.

The City Tunnel will make travelling easier in the Öresund Region and is set to increase the attraction for basing commercial operations here, which is one of the most important reasons for our continuous expansion in the area.

The maintaining of quality in our activities is one of our biggest challenges when we increase our portfolio. The latest acquisitions mean no drastic changes in our organisation. Management continues with the same efficiency as before, guided by our principles of rapid decision-making processes and close dialogue with our tenants, financiers and entrepreneurs.

During 2010 we have continued the development and refinement work on our existing portfolio. We have proceeded with the rebuilding of Aegir 1 (Post House) in Skeppsbron. The new parts of the property will be completed in the summer of 2011.

optimism, high expectations and new acquisitionsVolito Fastigheter is strong and stable after the recession of recent years. The company has implemented successful consolidation work according to plan with a focus on enhancing the efficiency of the organisation and reducing costs. Volito Fastigheter is now entering an expansion phase and looking forward we expect the market will offer opportunities for acquisitions. Around the turn of the year 2010-2011 the company carried through two property transactions in central Malmö, one of which is the largest in our history.

o

%

48

13

244

29

19

Volito Fastigheter AB, Five-year summary

SEK million 2010 2009 2008 2007 2006

Rental income including capital gains 119.5 111.4 130.7 92.1 81.5

Result before tax 43.9 36.2 48.1 27.0 26.5

Return on equity, (%) 13.3 11.7 25.9 11.3 12.2

Equity 251 229 222 178 166

Real estate market value 1 603 1 402 1 357 1 186 999

Distribution of rent by category and m2

Offices

Industry

Trade

Residential

Hotel

Nursery school

RE

AL

ES

TA

TESeveral important lease agreements

were signed during the year, including those with the two major tenants, and we expect all areas to be leased by the opening. In the same area we own and manage Ran 4, a six-storey property incorporating shops and office premises. We are planning rebuilding work on the attic to release 1 500 m2 of new office space. These premises will be ready at the end of 2011, when the Volito Group intend to become one of the tenants.

Regarding the property leasing market we have noted that interest from potential tenants remains strong in general. During 2010 two of our tenants outgrew their premises and left us. At the same time we have signed several new lease agreements with tenants taking occupancy in 2010 and 2011 with a total rental value of SEK 92 million. Two of the major contracts relate to office space at Flygkameran 2

and Nejlikebuketten 4. The vacancy rate in our portfolio is 9.8 %, which is fully in line with our expectations.

The development project in Bara town centre, which is being implemented in cooperation with Peab, continues to progress. Peab plans new construction of a large number of houses and apartments, and various premises for a library, sport, shops and service functions. We are actively participating in the changes to Bara’s town centre and plan in early 2011 to be part of a company that will manage the completed multi-use sports hall. We have high expectations for the expansion of Bara and plan to increase our involvement together with Peab.

Volito Fastigheter reported a pre-tax profit for 2010 of SEK 43.9 million. The result is higher than expected, which is partly due to the favourable interest rate.

The market value of Volito’s property portfolio was assessed by an external party at year-end and was set at SEK 1 603.1 million, which represents an increase of 8.5 % compared with the previous year.

I would like to take this opportunity to thank all of my colleagues, whose great efforts and commitment are behind Volito Fastigheter’s success. Having access to their knowledge and experiences is a constant source of inspiration.

Looking ahead we assess the market situation as optimistic. Opportunities for financing are improving, some-thing clearly shown by our latest transactions. We are stronger than ever and well prepared for our continued expansion. We look forward to the coming year with high expectations.

1

15

12

22

3

224

91

411

3 52 4

ÖreSuND

KlAGShAMN

N

2316141310

212019

6

78

5

MAlMÖ

17 18

20

real estate holding 2010

Property Segeholm 10Address Ågatan 1Area 15 199 m2

Property Äpplet 15Address Generalsg 5Area 664 m2

Property Flygkameran 2Address Höjdroderg 7-9Area 1 376 m2

Property Diana 28Address Engelbrektsg 5Area 902 m2

Property Hangaren 2Address Flygplansg 1-3Area 2 200 m2

6

11

16

21

8

13

18

23 24

10

15

20

7

12

17

22

9

14

19

21

Property Nejlikebuketten 4Address Derbyvägen 6Area 6 557 m2

Property Aegir 1Address Carlsgatan 1Area 7 610 m2

Property Flygledaren 7Address Höjdroderg 22Area 1 971 m2

Property Runstenen 16Address Käglingevägen 37Area 3 068 m2

Property Medusa 3Address Carlsgatan 42Area 1 300 m2

Property Skytteltrafiken 2Address Nygårdsvägen 6Area 1 730 m2

Property Ran 9Address Jörgen Kocksg 1Area 7 904 m2

Property Hamnen 22:2Address Jörgen Kocksg 3Area 7 597 m2

Property Ran 4Address Skeppsbron 3Area 4 019 m2

Property Bronsdolken 26Address Stenyxegatan 25BArea 2 221 m2

Property Kupolen 3Address Krossverksg 7-17Area 9 970 m2

Property Medusa 4Address Carlsgatan 44Area 7 201 m2

Property Lastbryggan 2Address Nygårdsvägen 4Area 1 158 m2

Property Härsjön 4Address Hålsjögatan 8Area 3 147 m2

Property Delfinen 17Address S Förstadsgatan 4Area 3 034 m2

Property Utgrunden 7Address Aspögatan 1Area 7 291 m2

Property Bronsdolken 26Address Stenyxegatan 25AArea 3 423 m2

Property Ran 8Address Skeppsbron 7Area 1 084 m2

RE

AL

ES

TA

TE

Property Sankt Peter 3Addess Östergatan 30Area 2 850 m2

22

ver since it was established, Volito Fastigheter has invested long term in the Malmö region’s most

attractive areas. All acquisitions are thoroughly assessed and valued, using criteria such as proximity to service functions, access roads and other communications. The new properties are a good fit for the portfolio.

Laxen 23, Söderport 8, Stjärnan 10 and Claus Mortensen 29, are all attractively located in areas beside the long pedestrian precinct that makes

up Malmö’s absolute centre. The properties incorporate everything from office space to training companies and well-known shops and entertainment venues. Söderhavet 5 and 6 are in Nyhamnen – one of the districts along Malmö’s coastal strip. Major changes are planned for this area in the next few years including housing, commercial premises and green spaces. The properties consist of modern office and exhibition spaces. All of the new properties are within walking distance of either the Central Station or the

newly opened City Tunnel, which in time will make travelling easier in the Öresund region, through benefits such as shortening journey times for commuters.

All the new acquisitions are considered as long-term investments and will in the near future be modernised regarding ventilation, refrigeration, digital technology and workspace flexibility – enhancements that will make the properties even more attractive.

Volito’s portfolio gains six new propertiesAfter a period of good consolidation work, Volito Fastigheter has entered an expansion phase. In early 2011 an acquisition was made consisting of six strategically located properties in the Malmö region. It is the single largest acquisition since the business was formed and means that Volito Fastigheter has raised the market value of its portfolio by 24 %.

e

23R

EA

L E

ST

AT

E

Peab is active in the construction and civil engineering field and listed on OMX Nordic Exchange Stockholm (Large Cap from 2011). At year-end 2010, Volito owned 5.15% of the capital and 2.52 % of the votes in Peab. The holding is a long-term investment and Volito has had a well-developed cooperative relationship with Peab for a number of years. Volito Fastigheter engages Peab for construction and civil engineering work using the cooperative procurement method. Volito also acts as an advisor and partner, and acquires and administers the completed properties in the case of new production managed by Peab.

One example of development and improvement is the small town of Bara, located just outside Malmö. Bara is popular for its proximity to the countryside and golf courses, and is set for significant expansion. Peab plans new construction that

includes around 340 rented and owner-occupied apartments, a large number of houses, premises for health care, social services and shops, and a new library on behalf of Svedala Municipality. There are also plans for entertainment and recreation facilities in the area. Volito Fastigheter is actively participating in the changes to Bara’s town centre and plans in early 2011 to be part of a company that will manage the completed multi-use sports hall. The tenant in this case is also Svedala Municipality. Volito sees good business opportunities in Bara’s expansion and intends to increase its involvement together with Peab.

Peab trendsVolito’s holding in Peab has developed positively in value terms during the year. The share price fell somewhat in the first half of the year, but recovered and rose over the full year by around 24 %, which is in line with OMXSPI.

The Peab Group’s turnover increased by 9 % compared with 2009. The reported operating profit was SEK 1 563 million, which is 2 % lower than the previous year.

After a subdued opening to 2010, due to the harsh winter, all three business areas – Construction, Civil Engineering and Industry – reported increased activity. The construction business experienced a strong recovery and at year-end Peab had its biggest order book ever, amounting to SEK 27 billion (plus 11 %). One notable order is for the new construction of 10 IKEA stores in the Nordic countries, which is Peab’s largest single order ever.

Peab deems the outlook for 2011 as good, an assessment mainly based on the increasingly strong construction market, which is driven by demand for new homes and apartment buildings as well as commercial premises.

t h e h o l d i n g i n p e a b

Value increases and cooperation deepensBusiness Area Real Estate also includes Volito’s holding in Peab AB (publ). Seen over the full year the value trend for the Peab holding has been positive. The construction market has steadily improved and the company has the largest inflow of orders in its history. Cooperation on the real estate side has deepened further, including projects such as the development of Bara town centre.

24

25

b u s i n e s s a r e a

iNDuSTrYBusiness Area Industry invests in well-established industrial

companies with long-term growth possibilities. Today, the business area consists of partly-owned HydX AB, wholly-owned Hydro Swede AB and Hydratech AB, and the newly established Hydraulic Supplier i Norden AB. In its respective specialist areas, the companies deliver systems, aggregates and components for industrial, mobile and marine hydraulics.

HydX has 15 employees in Ystad and Gothenburg; Hydro Swede, with five employees, is active south of Stockholm; Hydratech has 10 employees in Smålandsstenar, while Hydraulic Supplier is in a recruitment phase as it sets up for business in Örnsköldsvik and Skellefteå. The companies operate under the parent company, Volito Automation. Volito’s ambition for Volito Automation is for it to establish itself as a leading supplier in industrial hydraulics. The aim is to create a structure of knowledge-intensive companies that together will offer complete sector coverage for the Swedish market.

Business Area Industry also contains a long-standing, active owner-ship interest of 15.5% in CTT Systems. CTT develops advanced on-board humidity regulation systems for aircraft. The technology is used to create a more comfortable, healthier cabin environment and to combat condensation in the aircraft fuselage, leading to improved operational reliability, lower weight and lower fuel consumption. CTT Systems is on the Small Cap listing of OMX Nordic Exchange Stockholm.

IND

US

TR

Y

26

Volito Industri is expanding – the aim is to be a leader in industrial hydraulics”

Johan Lundsgård CEO, Volito Industri

usiness Area Industry currently consists of four companies in the hydraulics sector: the partly

owned HydX, the wholly-owned Hydro Swede and Hydratech, and the newly formed Hydraulic Supplier. All companies operate under the parent company, Volito Automation. The business area also contains a long-standing active ownership interest of 15.5 % in CTT Systems. CTT develops advanced solutions for humidity regulation on board aircraft and is on the Small Cap listing of OMX Nordic Exchange Stockholm.

The ambition for Volito Automation is to build up a position in the Swedish market as a leading supplier of solutions in industrial hydraulics. HydX has completed its first financial year and progress has been according to plan. The company has been positively received by the market and has established itself with the majority of intended target customers. The inflow

of orders has been good from the start of the second quarter in 2010 onwards and with the current order book we can expect rising revenues during 2011. HydX has achieved success in areas such as turbine regulation on the industry side and tracked contractor’s machinery on the mobile side. During 2010 HydX has also succeeded in signing partnership agreements with two of the sector’s largest and most respected suppliers, Parker-Hannifin and Sauer-Danfoss. The agreements means close and deepened cooperation that broadens HydX’s customer offering – a sign that the company’s expertise is sought after in the market. The business partnerships will have a positive effect on future sales. During the year recruitment opportunities to strengthen the company’s team of qualified sales representatives resulted in the setting up of a sales office in Gothenburg. The year’s positive developments have meant that HydX in Ystad has outgrown its premises and from the start of 2011

the business has operated from a new address with plenty of space for growth in the years to come. At the end of the year we also acquired the Stockholm-based Hydro Swede, and started to establish Hydraulic Supplier. Hydratech AB in Smålandsstenar was acquired at the start of 2011. Like HydX, these companies supply hydraulic components and systems within their respective specialist areas. Hydro Swede and Hydratech have five and 10 employees respectively and similar turnovers of around SEK 20 million. Recruitment is underway at Hydraulic Supplier for both facilities in Örnsköldsvik and Skellefteå.

In the foreseeable future we see a situation in which Volito Automation will be the owner of a number of companies in industrial hydraulics. The aim is that together these companies will provide total coverage

Business Area industry continues to progressBusiness Area Industry has developed in line with expectations. The Hydraulics company HydX has expanded and established business partnerships in accordance with the set business plan. In late 2010 the Stockholm-based company Hydro Swede was acquired, and the formation of Hydraulic Supplier under own management began in Örnsköldsvik and Skellefteå. The sector-covering company structure, which is the aim of Volito Automation, is becoming clearer.

B

27IN

DU

ST

RY

for the Swedish market, both in terms of geography and the product and service offering, with an estimated total turnover of around SEK 200 million within a few years time.

The Swedish engineering industry has on the whole performed very strongly in 2010. In the hydraulics sector it is usually considered that, in business cycle terms, the mobile market is six months ahead of the industrial market, in both upswings and downturns. Demand for mobile hydraulics has been on the rise for a time and we also expect increased demand and inflow of orders on the industry side in the first half of 2011.

CTT SystemsInterest in CTT’s humidity control technology continues to grow. In recent years CTT has been successful in selling direct to aircraft manufacturers and it is here that future potential lies – both Boeing

and Airbus use CTT’s systems in their new aircraft. The aviation industry had another tough year in 2010, which has affected the inflow of orders, as has the delay in delivery of Boeing’s B787, which is equipped with CTT’s Zonal Drying system. Despite this, there is a regular flow of orders. The order relating to Boeing’s B787-programme in October is CTT’s single largest order ever and indicates that the company is entering a fase where OEM-deliveries will lead to a regular increase in turnover. The retrofit market remains weak, but CTT deems that the will to invest will increase as airlines become more profitable. The Board considers that the company’s financial situation remains satisfactory. Our holding in CTT Systems rose in value by around 25% in the first half-year, and fell by a similar percentage during the second. The OMXSPI rose by around 21% during the year. At year-end the share price was at a similar level to the

previous year-end. The company made a loss after tax of SEK -2.3 million, which is lower than the previous year. Volito has had an ownership interest in CTT Systems for many years and we consider the company as a long-term investment. It is our conviction that CTT Systems will continue to develop positively and in time will be a very profitable investment.

Finally, I would like to thank all the staff and partners who make our successes possible in Business Area Industry. It is a privilege to be surrounded by individuals who possess so much expertise, experience and commitment.

28

29

b u s i n e s s a r e a

STruCTureDFiNANCeBusiness Area Structured Finance consists of the Swiss bank

Nordkap Bank AG, of which Volito owns 40 %. Nordkap Bank AG is an independent commercial bank, specialising in financing solutions for infrastructure development.

The bank’s customers are primarily active within infrastructure, mainly energy, and the industrial sector, and are spread over all the world’s continents. Within infrastructure and energy, which accounts for more than 60 % of lending, power generation is the single largest area with 20 % of the portfolio value. The largest geographical markets of the bank are North America (36 % of the portfolio value), Eastern Europe/CIS (16 %), Asia (13 %) and Middle East & North Africa (13 %).

Nordkap Bank AG mainly finances power plants, roads, railways, waste management and telecommunication networks. Other investment areas include biofuels, oil extraction, mining and hard commodities. The bank strives to spread its risks as widely as possible, in terms of different sectors and geographical areas, and also link risk-taking to the greatest possible yield.

ST

RU

CT

UR

ED

FIN

AN

CE

30

600

500

400

300

200

10004 05 06 07 08 09 10

CHF million Total loan and guarantee portfolio

After the consolidation of recent years we can resume our focus on core activities”

Niklaus Hasler CEO, Nordkap Bank AG

Nordkap Bank AG sees the value of long-term approachBoth 2009 and 2010 were characterised by consolidation and reconstruction. A focus on long-term thinking, rather than short-term fixes, has enabled Nordkap Bank AG to find long-term solutions for problem loans. Since the autumn of 2009 steady improvements have been noted in the bank’s portfolio. There has been a return to profit and the bank can increasingly resume its core activities.

uring the financial crisis a number of Nordkap Bank AG’s customers faced difficulties

and were unable to meet payment obligations. For the last two years our focus has been on managing and restructuring problematic credits, which has meant that we have only completed a few new transactions. In the same period credit markets have improved, increasing customers’ repayment capacity to the extent that

several have chosen to pay off their loans in advance. This combination of factors caused a reduction in the loan portfolio last year as well as a high level of liquidity.

We are achieving good results in restructuring problem loans and a positive trend has been noted since the autumn of 2009. This has been mainly due to our decision at an early stage to take a long-term

D

%

31

Key financial figures Nordkap Bank AG, five years summary

CHF million 2010 2009 2008 2007 2006

Profit before tax according to Swiss regulatory accounting* 0.5 0.3 1.5 11.5 8.8

Result before tax according to IFRS* 1.6 -16.6 -8.0 10.4 13.1

Net result according to IFRS* 1.3 -13.1 -5.4 7.2 10.2

Return on equity (%) according to IFRS* 0.0 -14.6 -5.3 6.8 10.4

Equity according to IFRS* 76.9 81.7 97.2 108.2 103.5

* Within the Volito Group, Nordkap Bank’s result is reported in accordance to IFRS. The main differences between Swiss regulatory accounting and IFRS refer to valuation of the loan and guarantee portfolio and current provisions for credit losses.

Distribution of loan and guarantee portfolio per sector

Energy

Industry

Infrastucture

Financial Industry

Others

ST

RU

CT

UR

ED

FIN

AN

CE

perspective rather than opt for short-term solutions. We usually prefer to actively contribute in the restructuring of a loan, rather than selling our distressed positions and accepting a loss. To a great extent we offer individual advice, using our specialist expertise and experience to help our customers to secure sustainable solutions. With this approach we have succeeded

in enabling a large number of our customers to achieve a good recovery and a renewed capability to act.

Nordkap Bank AG’s profit before tax for 2010, in accordance with IFRS principles, was CHF 1.6 million, which is a strong improvement compared to the last two years.

We are cautiously optimistic for 2011. Our customer’s financial positions are improving continuously and consequently Nordkap Bank AG can return to business as usual with a dedicated focus on our core activities.

51.8

15.9

13.8

5.6

12.9

32

President and CEO

Johan Lundsgård, born 1953, EconomistBoard Member of Volito Aviation AB, Volito Fastigheter AB and Volito Industri AB. Chairman of the Board at CTT Systems AB (publ), SAA AB och HydX AB.

Board Member

Lennart Blecher, born 1955, Bachelor of LawsSenior Partner of EQT. Chairman of the Board at Brunswick Leasing Ltd. and Nordkap Bank AG, Zürich. Board Member of Volito Aviation AB, Volito Fastigheter AB, Volito Industri AB and Falcon Private Bank, Zürich.

Chairman of the Board

Karl-Axel Granlund, born 1955, Master of ScienceChairman of the Board at Volito Aviation AB, Volito Fastigheter AB and Volito Industri AB. Board Member of PEAB AB (publ) and others.

Board Member

Bo Olsdal, born 1945, Master of ScienceBoard Member of Volito Aviation AB, Volito Fastigheter AB, Volito Industri AB, SAA AB and Ste-Nic AB.

Board of Directors and Management

33A

NN

UA

L R

EP

OR

T

t h e g r o u p

ANNuAl reporT Administration report

34-36

Consolidated income statement

37

Consolidated balance sheet

38-39

Pledged assets and contingent liabilities

40

Summary of changes in equity

41

Cash flow statement

42

Supplement to cash flow statement

43-44

Accounting principles and notes to the accounts

45-57

Signatures

57

Auditors’ report

58

Addresses

59

34

Administration reportThe business in brief

The Group

Volito AB (556457-4639) is the Parent company in a Group that

operates in the business areas Aviation, Real Estate, Structured

Finance and, since the autumn of 2009, Industry. Aviation currently

consists solely of Volito Aviation (aircraft leasing). Until September,

the business area also included the divested SAA Group (training). The

Real Estate business area consists of Volito Fastigheter and Volito’s

holding in Peab AB (publ). As part of the Group’s continued expansion,

Volito established HydX AB in the autumn of 2009, whose business

concept is to supply customised hydraulic systems for different

application areas in industry. Volito Industry has continued its

expansion in the Swedish hydraulics market through the acquisition

of Hydro Swede i Stockholm AB and the establishing under own

management of Hydraulic Supplier i Norden AB. Volito’s holding in

CTT Systems AB (publ) is now contained in the Industry business area.

Structured Finance includes Volito’s ownership in Nordkap Bank AG.

The result before tax for the Parent company amounted to SEK 47.9

million (47.0) and the result before tax for the Group was SEK 121.7

million (82.5). The balance sheet total for the Parent company at year-

end was SEK 1 146.3 million (1 111.0) and for the Group, SEK 2 938.8

million (2 820.5). The equity amounted to SEK 648.8 million (597.2)

and SEK 872.5 million (824.4) for the Parent company and Group

respectively.

AviationLeasing – Volito Aviation AB group

Volito Aviation runs operations in the leasing of commercial jet aircraft

in the narrow-body segment, mainly Boeing 737 and Airbus 319/320

aircraft.

The company VGS Aircraft Holding (Ireland) Ltd. is jointly owned with

Goldman Sachs and is based in Ireland. During 2010 VGS invested in

three new aircraft. All acquisitions are sale and leaseback transactions

and relate to one used 737-800 to the Dutch airline Transavia, and two

newly produced Airbus 320 aircraft to Air Berlin in Germany. As no

aircraft sales have taken place, VGS had a fleet of 44 aircraft at year-

end. These have a total book value of USD 836.0 million. Liabilities

linked to the fleet amounted to USD 509.1 million at year-end. The

percentage of narrow-body aircraft in the fleet is 100%, and there is a

good spread of risk in geographical terms. The company has lessees in

Europe, Central and South America, North America, Asia and Africa.

The fleet of VGS and Volito Aviation’s own fleet of five aircraft

are managed by Volito Aviation Services AB (VAS), a dedicated

management company that is principally owned by Volito Aviation AB

(80%). During the year eight aircraft in the VGS fleet were remarketed

under new leases.

Volito Aviation AB has had to take back three aircraft, two Fokker 50s

from Denim Air in Holland due to bankruptcy, and one Boeing 737-400

from Blue Air in Romania, as the customer could not fulfil payment

obligations. A new leasing agreement has been signed for the latter

with delivery in January 2011. In the beginning of 2011 a letter of intent

has been sign for one of the two F50s. The second F50 is still to be

leased out.

Volito Aviation AB has upgraded its own aircraft for a total of SEK 18.5

million (7.4).

The after-effects of the recession continued to impact on business

activities in 2010. It has been difficult to sign leasing agreements and

finance aircraft transactions. However, positive signs were noted in

the second half of the year – a considerable improvement in market

conditions, increased traffic volumes and more positive financial

figures from the airlines. Volito Aviation generated a pre-tax profit of

SEK 37.2 million (71.0).

Training – Scandinavian Aviation Academy AB group

The company was divested in the autumn, resulting in a capital gain

for the Group of SEK 4.7 million. The profit before tax for the nine

months the company was owned by the Group was SEK 2.9 million.

SAA runs training courses for personnel in the aviation industry,

principally pilots, and has operations in Sweden and the USA.

Real EstateVolito Fastigheter AB group

Volito Fastigheter AB is a wholly-owned subsidiary of Volito AB.

Volito Fastigheter is involved in the trade and management of real

estate in the Öresund Region, with a focus on commercial properties

in the Malmö region.

During the year Volito Fastigheter acquired the property, S:t Peter

3 with a leasable residential space of 2 850 m2. The investment

amounted to SEK 68 million.

In early 2011 an acquisition was made consisting of six strategically

located properties in Malmö. It is the single largest acquisition since

the business was formed.

There have been no property sales during the year.

Volito Fastigheter has a vacancy rate of 9.8% (10.6%).

In value terms the real estate market has remained relatively stable

during the year. The market value of Volito’s property portfolio was

assessed by an external party at year-end and was set at SEK 1 603.1

million (1 401.8). Adjusted for acquisitions and rebuilding work this

represents an increase of 8.5% compared with the previous year-end.

Volito Fastigheter’s profit before tax for 2010 was SEK 43.9 million

(36.2). The results for 2010 include a non-recurrent remuneration of

SEK 11.5 million from the City of Malmö regarding land redemption.

Lower interest rates have also had a positive effect during the year

while a decrease in CPI have led to lower rental incomes. The return

on equity for the year was 13.3% (11.7%).

Other holdings – Peab AB (publ)

Peab is active in the construction and civil engineering field in the

Nordic Region. The company’s shares are listed on OMX Nordic

Exchange Stockholm.

Volito’s holding in Peab amounts to 15 250 000 series B shares in Peab

AB (publ), which corresponds to 5.15% of the capital and 2.52% of the

votes.

For Volito, the holding in Peab AB is of a strategic character. Volito

has had a well developed cooperative relationship with Peab for a

number of years. Cooperation between Volito Fastigheter and Peab

has deepened further through projects such as the development of

Bara town centre.

Peab has developed positively in 2010. The construction market has

improved steadily and the company has the biggest inflow of orders

in its history. The market value of Volito’s total holding at year-end

was SEK 873.1 million (701.5), which represents a value increase of

30% (taking received dividends into consideration) for the year. This

growth in value (excluding dividends) is in line with OMX SPI.

35A

NN

UA

L R

EP

OR

T

IndustryBusiness Area Industry invests in well-established industrial

companies with long-term growth possibilities.

The hydraulics company HydX AB, which was formed in late 2009, has

expanded and established partnerships according to the set business

plan. HydX provides a complete service relating to development,

design, production and service of hydraulic and lubrication systems.

Volito owns 40% of the shares in the company.

In late 2010 Hydro Swede i Stockholm AB was acquired and the

establishment of Hydraulic Supplier i Norden AB began. Hydratech

AB in Smålandsstenar was acquired in early 2011. Like HydX, these

companies supply hydraulic components and systems within their

respective specialist areas.

Volito AB owns 91% of the shares in the Volito Industry group, which

has generated a profit before tax of SEK 5.7 million. The result includes

a capital gain from the sale of the company’s holding in Haldex AB

(publ) of SEK 6.8 million.

Other holdings - CTT Systems AB (publ)

CTT is a Swedish technology company that develops and markets

humidity control systems for commercial aircraft. The company’s

shares are listed on OMX Nordic Exchange Stockholm.

Interest in CTT’s humidity control technology continues to grow.

In recent years CTT has had success in selling direct to aircraft

manufacturers – both Boeing and Airbus use CTT’s systems in their

new aircraft. The order relating to the B787 programme in October is

CTT’s single largest order ever.

Volito’s holding amounts to 15.5% of the votes and capital in CTT.

At year-end the share price was at a similar level to the previous year-

end, SEK 25.70 per share (24.6). In the same period the OMX Small Cap

increased by just over 20%.

Structured FinanceNordkap Bank AG is a Swiss commercial bank specialising in

structured financing solutions. Volito AG owns 40% of the shares in

Nordkap Bank AG.

Nordkap Bank AG has been adversely affected by the financial crisis

that started in 2008. During the financial crisis a number of the bank’s

customers found themselves in difficulties and consequently had

problems in fulfilling their payment obligations to the bank. This

resulted in increased provisions for customer losses at Nordkap

Bank AG. For the last two years the focus has been on managing and

restructuring problem loans. As the credit market has improved,

customers’ repayment capability has increased and several have paid

off loans in advance, which has resulted in a reduction in the loan

portfolio.

Nordkap Bank AG reported a profit before tax for 2010 of CHF 0.5

million (0.3). The return on equity was 0.5% (0.1%). Within the Volito

Group, Nordkap Bank AG’s result is reported in accordance with IFRS.

The consolidated loss for the Nordkap Holding group in accordance

with IFRS was CHF -0.2 million (-15.2).

Other holdingsVolito has shares in AB Nordsidan, Custos and a number of different

small companies. The combined value of these holdings for the Group

amounted at year-end to SEK 18.5 million (29.0). Volito’s holdings in

Galenica AB and Haldex AB have been divested during the year and

resulted in a capital gain for the Group of SEK 12.0 million.

The Parent companyThe profit before tax for the Parent company amounted to

SEK 47.9 million (47.0).

TaxDeductible deficiency relating to Volito Aviation Finance

Volito Aviation Finance was acquired in 2004. The National Tax

Board made a claim in the County Administrative Court that the

deductible deficiency as on 31 December 2004 should be disallowed

in accordance with the law on tax evasion. The County Administrative

Court found in favour of Volito Aviation Finance. The National Tax

Board appealed to the Administrative Court of Appeal, which has

accepted the National Tax Board’s interpretation. Volito Aviation

Finance thereafter applied for leave to appeal to the Supreme

Administrative Court, but this was rejected in 2010.

Due to the fact that the possibility of a leave to appeal was uncertain,

the company decided to report the tax that results from the

judgements in the Administrative Court of Appeal with the interest

on this tax as costs and liabilities as on 31 December 2009. The tax

amounts to SEK 36.2 million and the interest to SEK 1.2 million, and will

be paid in early 2011.

Important leasing agreementsVolito Aviation’s aircraft fleet is leased out under operational leasing

agreements. The period during which aircraft are leased out ranges

from one to four years, see note 5.

Volito Fastigheter had a vacancy rate of 9.8% (10.6%). The breakdown

of leases is 95% commercial properties and 5% residential. The

commercial rental income is divided between 171 contracts in a

number of different sectors. For more information, see notes 5 and 19.

Important events after the end of the financial yearIn early 2011 Volito Fastigheter made an acquisition consisting

of six strategically located properties in Malmö. It is the largest

single acquisition since the business started and means that Volito

Fastigheter has raised the market value of its portfolio by 24%.

Volito Industri AB acquired Hydratech AB at the beginning

of January 2011.

Expectations concerning future developmentsThe Group

Forecasting the future after a recession is difficult. However there are

good reasons to expect a growth period in traffic volumes in the next

four to six years, which will lead to a considerably improved business

climate. Even so, there is tough competition in the market and interest

for the leasing and refinancing of older aircraft will be subdued

for a while longer, which in all probability will also affect Volito’s

performance in 2011.

We are now leaving a period in which the market for real estate

transactions has in general been completely closed. In the near future

we expect more properties to be for sale and an increasing interest

in financing of property transactions from the banks’ side, which

means that the market situation is deemed as optimistic. At the same

time, Volito Fastigheter is stronger than ever and is well prepared for

continued expansion.

The ambition for Volito Automation is to build up a position in the

Swedish market as a leading supplier of solutions in industrial

hydraulics. The Swedish engineering industry overall has performed

strongly in 2010. Demand for mobile hydraulics has been rising for a

time and Volito expects increased demand and inflow of orders on the

industry side in the first half of 2011.

36

After a few years of focusing on portfolio management, Nordkap

Bank has noted a continuous improvement in its customers’ financial

capability, which means that Nordkap Bank can return to business as

usual with a focus on its core activities.

Information on risks and uncertainty factorsThe Group

The Group owns aircraft, which are leased to different lessees. The

aircrafts’ value can fluctuate over time and the Group bears the risk

relating to what the aircraft are worth at the time of a future sale. This

risk is managed by continuous analysis of both the market for aircraft,

and of potentially suitable times for selling aircraft.

In addition the Group bears risks relating to the lessees’ credit rating in

the form of leasing payments that are to be made during the period of

the lease, and to other contractual obligations in the leasing agreement.

If the lessee does not fulfil their obligations according to the leasing

agreement, the Group may need to recover the aircraft, which is often

associated with one-off costs. Risk management in this case is carried

out through continuous credit analysis of the respective lessees.

Banking activities carry risks, mainly in the form of credit losses, when

the borrower cannot make repayments due on the loan. Nordkap

Bank AG in cooperation with external auditors carries out continuous

assessments of risks in the loan portfolio.

Financial risksIn its business activities the Volito Group is exposed to various types

of financial risks. Financial risks relate to changes in exchange rates

and interest rates that affect the company’s cash flow, profit and

thereby associated equity. The financial risks also include credit and

refinancing risks.

Exposure applying to the different operations is presented quarterly

for the respective companies’ boards, which make current decisions

regarding financial risk management based on the market situation

and macroeconomic information, see note 37.

Currency exposure

In its business activities the Volito Group is exposed to risks relating to

exchange rate changes principally through its involvement in aircraft

leasing. Income from the leasing business is set and paid in USD. This

exposure is counterbalanced to a large degree in that interest and

amortisation are similarly USD-based.

The results of VGS are reported as participations in joint ventures.

Exchange rate differences related to translation of VGS are posted in

the equity.

The Volito Group’s holding in Nordkap Bank AG is partly hedged

against changes in the CHF exchange rate through certain borrowings

in CHF. However, a certain amount of the holding is exposed to

changes in the CHF exchange rate. Exchange rate differences related

to translation of participations in associated companies are posted in

the equity.

The Board of Volito has decided to accept the exposure to USD and

CHF according to the above, as this exposure in itself constitutes a risk

diversification within the Volito Group. The extent of this exposure will

be decided according to continuous review.

Interest rate exposure

The Volito Group is exposed to changes mainly in short-term interest

rates through its involvement in the Volito Fastigheter AB group.

The Parent company, Volito AB, also has risk exposure relating to

short-term interest rates.

Taken together, the Volito Group’s total loans exposed to short-term

interest rates amount to SEK 906 million (892).

The Volito Group manages part of its interest rate risks using interest

rate swaps. Hedging relating to 48.6% of the debt portfolio of the

Volito Fastigheter AB group is being managed with swaps, something

that gives the company a higher degree of flexibility in terms of future

debt management. See note 37.

Refinancing risksThe Volito Group depends on a functioning credit market. The Group

has a need to continuously refinance parts of its business, see note

39. The Group has a satisfactory equity ratio and loan capacity. It is

therefore Volito’s assessment that there is at present no problem

concerning the credit that is due for refinancing.

Information on non-financial result indicationsVolito’s employees

The Volito Group is a relatively small organisation that handles large

capital amounts. The well-being and development of the Group’s

employees are hence of vital importance for the long-term prosperity

of the Group.

Volito uses employment conditions as the primary tool for attracting

suitable and talented people. A number of events are organised within

the Group’s various companies to further strengthen the team spirit

and loyalty among people working at Volito.

Proposed allocation of the company’s profit The Board of Directors and CEO propose that the unappropriated

earnings, SEK 383 788 117.08, is allocated as follows (SEK K):

Dividend, [2 440 000 at SEK 10.25 per share] 25 010

Retained earnings carried forward 358 778

Total 383 788

The proposed dividend reduces the Group’s equity ratio to 54% from

57%. The equity ratio is prudent, in view of the fact that the company’s

activities continue to operate profitably. Liquidity in the Group is

likewise expected to be maintained at a similarly secure level.

The Board’s understanding is that the proposed dividend will not

hinder the company in carrying out its duties in the short or long term

nor from conducting necessary investments. The proposed dividend

can thus be seen in accordance with sections 2 and 3 of Paragraph 3 of

ABL 17 (prudence principle).

For further information on the company’s income and position, refer

to the subsequent income statements and balance sheets, and related

notes to the accounts.

37

Income Statement The Group The Parent Company

AN

NU

AL

RE

PO

RT

Note Amounts in SEK K 2010 2009 2010 2009

1 Net sales 317 265 333 870 8 058 10 697

3 Other operating income 16 741 7 041 3 1

5 334 006 340 911 8 061 10 698

Operating expenses

4 Other external costs -134 520 -121 944 -9 611 -10 330

6 Personnel costs -95 194 -96 258 -8 652 -11 182

7 Depreciation and write-downs of tangible

and intangible fixed assets -45 986 -47 359 -355 -334

8 Other operating expenses -3 783 -260 – –

Operating result 54 523 75 090 -10 557 -11 148

Result from financial income and expenses

9 Result from participations in group companies 5 590 -153 26 223 30 585

10 Result from participations in joint ventures 49 269 63 973 – –

11 Result from participations in associated companies 2 465 -41 767 2 109 1 149

12 Result from other securities and

receivables held as fixed assets 46 758 32 943 35 801 29 203

13 Interest income and similar income 10 057 11 287 2 933 9 120

14 Interest expenses and similar expenses -47 009 -58 831 -8 567 -11 938

15 Result before tax 121 653 82 542 47 942 46 971

16 Taxes -4 824 -49 186 8 044 4 236

Minority interests -22 872 -29 778 – –

RESULT FOR THE YEAR 93 957 3 578 55 986 51 207

38

Balance Sheet The Group The Parent Company

Note Amounts in SEK K 2010-12-31 2009-12-31 2010-12-31 2009-12-31

ASSETS

Fixed assets

Intangible fixed assets

17 Other intangible assets 392 632 – –

18 Goodwill 9 000 712 – –

9 392 1 344 – –

Tangible fixed assets

19 Real estate 1 037 637 968 624 – –

20 Aircraft 205 055 237 837 – –

21 Aircraft inventories 70 238 – –

22 Equipment, tools and installations 5 071 17 440 3 336 3 106

Construction in progress and advance

23 payments relating to tangible fixed assets 27 296 14 939 – –

1 275 129 1 239 078 3 336 3 106

Financial fixed assets

24 Participations in Group companies – – 530 122 544 540

25 Receivables from Group companies – – 103 522 85 361

26 Participations in joint ventures 346 430 317 012 – –

27 Receivables from joint ventures 453 432 403 429 – –

28 Participations in associated companies 64 526 64 837 5 156 10 629

29 Receivables from associated companies 90 644 84 228 – –

30 Other securities held as fixed assets 440 589 447 590 409 415 416 416

31 Deferred tax assets 34 777 33 720 23 995 23 325

32 Pre-paid borrowing expenses 2 009 2 761 – –

33 Financial leasing agreements 31 817 32 823 – –

34 Other long-term receivables 9 019 1 371 7 999 –

1 473 243 1 387 771 1 080 209 1 080 271

Total fixed assets 2 757 764 2 628 193 1 083 545 1 083 377

Current assets

Inventories etc.

Raw materials and necessities 3 289 4 391 14 1

3 289 4 391 14 1

Current receivables

Accounts receivable – trade 15 913 15 901 – 13

Receivables from Group companies 3 928 218 57 854 22 780

Receivables from joint ventures 18 618 11 641 – –

Receivables from associated companies 20 181 17 536 – –

Income tax receivables 12 311 11 287 210 681

Other receivables 11 039 7 558 1 174 479

35 Prepaid expenses and accrued income 5 038 7 945 832 862

87 028 72 086 60 070 24 815

36 Short-term investments 1 312 1 276 1 312 1 276

Cash and bank balances 89 369 114 590 1 343 1 487

Total current assets 180 998 192 343 62 739 27 579

TOTAL ASSETS 2 938 762 2 820 536 1 146 284 1 110 956

39

Balance Sheet The Group The Parent Company

AN

NU

AL

RE

PO

RT

Note Amounts in SEK K 2010-12-31 2009-12-31 2010-12-31 2009-12-31

EQUITY AND LIABILITIES

Equity

38 Restricted equity

Share capital (2 440 000 shares at nom. SEK 100) 244 000 244 000 244 000 244 000

Restricted reserves 41 631 40 636 21 005 21 005

Non-restricted equity

Proposed dividend 25 010 25 010 25 010 25 010

Non-restricted reserves/Profit brought forward 467 871 511 165 302 792 255 932

Net result for the year 93 957 3 578 55 986 51 207

872 469 824 389 648 793 597 154

Minority interests 369 791 315 445 – –

Provisions

31 Provisions for deferred taxes 87 200 89 581 – –

87 200 89 581 – –

Long-term liabilities

39 Liabilities to credit institutions 389 774 788 841 250 000 250 000

41 Other liabilities 97 677 80 112 – –

487 451 868 953 250 000 250 000

Current liabilities

39 Liabilities to credit institutions 775 103 435 603 83 208 79 965

40 Bank overdraft facilities 169 068 131 447 141 617 124 467

Advance payment from customers – 9 113 – –

Accounts payable - trade 17 017 20 975 692 691

Liabilities to Group companies – 330 19 077 55 283

Liabilities to joint ventures – 480 – –

Income tax liabilities 31 315 64 977 – –

Other liabilities 79 346 6 053 227 218

42 Accrued expenses and deferred income 50 002 53 190 2 670 3 178

1 121 851 722 168 247 491 263 802

TOTAL EQUITY AND LIABILITIES 2 938 762 2 820 536 1 146 284 1 110 956

40

Pledged Assets and Contingent Liabilities The Group The Parent Company

Amounts in SEK K 2010-12-31 2009-12-31 2010-12-31 2009-12-31

Pledged assets

For own liabilities and provisions

Property mortgages 850 622 778 955 – –

Chattel mortgages 20 000 26 130 – –

Shares 389 890 389 882 363 676 363 668

Shares in subsidiaries 222 464 260 064 312 014 312 014

Aircraft mortgages 43 611 99 995 – –

Receivables – 26 000 – –

Leasehold Mosippan 32 823 34 094 – –

Other 1 000 1 807 1 000 1 000

Total pledged assets 1 560 410 1 616 927 676 690 676 682

Contingent liabilities

Guarantees for Group companies – – 115 630 112 375

Guarantees for associated companies 1 020 5 400 1 020 5 400

Other contingent liabilities 50 1 746 50 1 559

Total contingent liabilities 1 070 7 146 116 700 119 334

41

Summary of Changes in Equity The Group The Parent Company

AN

NU

AL

RE

PO

RT

Amounts in SEK K Share capitalRestricted

reservesNon-restricted

equity Share capitalRestricted

reservesNon-restricted

equity

Balance carried forward according to

balance sheet of 31 December 2008 244 000 88 625 566 549 244 000 21 005 309 794

FX/translation diff during the year – -31 373 – –

Transfer between unrestricted

and restricted equity -47 989 47 989 – –

Result for the year 3 578 51 207

Dividend -20 130 -20 130

Buy-back of option -26 860 -26 860

Group contribution – 24 610

Tax effects on Group contribution – -6 472

Equity as of 31 December 2009 244 000 40 636 539 753 244 000 21 005 332 149

FX/translation diff during the year – -20 867 – –

Transfer between unrestricted

and restricted equity 995 -995 – –

Result for the year 93 957 55 986

Dividend -25 010 -25 010

Group contribution – 28 037

Tax effects on Group contribution – -7 374

Equity as of 31 December 2010 244 000 41 631 586 838 244 000 21 005 383 788

Note 38 contains further information on equity.

42

Cash Flow Statement The Group The Parent Company

Amounts in SEK K 2010 2009 2010 2009

Operating activities

Result after financial income and expenses 121 653 82 542 47 942 46 971

Adjustments for items not requiring an outflow of cash -19 400 17 661 -4 058 -2 011

102 253 100 203 43 884 44 960

Income taxes paid -39 662 -39 085 471 -34 003

Cash flow from operating activities before

changes in working capital 62 591 61 118 44 355 10 957

Cash flow from changes in working capital

Increase(-)/Decrease(+) in inventories -81 -558 -13 5

Increase(-)/Decrease(+) in current receivables -25 504 65 819 21 325 10 493

Increase(+)/Decrease(-) in current liabilities 13 776 -11 275 -26 262 -16 458

Cash flow from operating activities 50 782 115 104 39 405 4 997

Investment activities

Acquisition of subsidiaries -7 842 – -1 051 -900

Disposal of subsidiaries -11 746 -6 970 4 040 6 062

Acquisition of intangible fixed assets -21 -106 – –

Acquisition of tangible fixed assets -116 171 -31 051 -585 -299

Disposal of tangible fixed assets 781 1 845 – –

Investments in financial assets -77 538 -42 801 -21 282 -9 840

Disposal of financial assets 20 233 5 701 17 794 5 701

Cash flow from investment activities -192 304 -73 382 -1 084 724

Financing activities

Capital contribution from minority in subsidiaries 50 741 – – –

Buy–back of option – -26 860 – -26 860

Proceeds from borrowings 414 905 99 881 40 699 82 452

Repayment of borrowings -325 783 -104 358 -54 067 -40 852

Dividends paid -25 010 -20 130 -25 010 -20 130

Dividends paid to minority – -4 800 – –

Cash flow from financing activities 114 853 -56 267 -38 378 -5 390

Cash flow for the year -26 669 -14 545 -57 331

Liquid funds at beginning of period 114 590 129 561 1 487 1 234

Exchange rate difference in liquid funds 1 448 -426 -87 -78

Liquid funds at end of period 89 369 114 590 1 343 1 487

43

Supplement to Cash Flow Statement The Group The Parent Company

AN

NU

AL

RE

PO

RT

Amounts in SEK K 2010 2009 2010 2009

Interest paid and dividends received

Dividends received 38 741 34 557 60 472 62 283

Interest received 2 468 4 012 90 859

Interest paid -44 079 -46 559 -7 213 -29 885

Adjustments for items not requiring an outflow of cash

Less: Profit participation in associated companies

and joint ventures -47 854 -22 178 – –

Dividends from subsidiaries – – -23 644 -9 308

Depreciation and write-downs of fixed assets 45 986 47 359 355 334

Depreciation of prepaid loan expenses 1 698 1 397 – –

Write-downs of assets 105 1 121 22 971 10 053

Reversed write-downs -36 -7 220 -10 089 -7 301

Unrealised exchange rate differences -3 760 -4 135 -716 2 505

Gains/losses from disposal of fixed assets 2 095 -407 7 065 7 385

Gains/losses from disposal of financial fixed assets -12 046 7 250 – –

Gains/losses from sale of subsidiaries -5 588 153 – –

Other non cash items – -5 679 – -5 679

-19 400 17 661 -4 058 -2 011

Acquisition of subsidiaries and other business units

Acquired assets and liabilities:

Intangible fixed assets 9 000 – – –

Tangible fixed assets 41 – – –

Inventories 3 275 – – –

Operating receivables 4 256 – – –

Liquid funds 7 232 – – –

Total assets 23 804 – – –

Operating liabilities 4 426 – – –

Total provisions and liabilities 4 426 – – –

Purchase price 19 378 – – –

Less: Promissory note -4 304 – – –

Purchase price paid 15 074 – – –

Less: Liquid funds in the acquired operations -7 232 – – –

Effect on liquid funds (minus=increase) 7 842 – – –

44

Supplement to Cash Flow Statement The Group The Parent Company

Amounts in SEK K 2010 2009 2010 2009

Disposal of subsidiaries and other business units

Disposal of assets and liabilities:

Intangible fixed assets 178 – – –

Tangible fixed assets 31 357 – – –

Fixed assets 4 458 – – –

Operating receivables 14 767 49 – –

Liquid funds 15 466 13 021 – –

Total assets 66 226 13 070 – –

Minority – 5 967 – –

Provisions 3 910 – – –

Liabilities to credit institutions 30 056 – – –

Operating liabilities 26 082 899 – –

Total provisions and liabilities 60 048 6 866 – –

Purchase price received 11 719 6 051 – –

Promissory note -7 999 – – –

Received cash 3 720 6 051 – –

Less: Liquid funds in disposed-of operations -15 466 -13 021 – –

Effect on liquid funds -11 746 -6 970 – –

2010 2009 2010 2009

Liquid funds

The following components are included in liquid funds:

Cash and bank balances 89 369 114 590 1 343 1 487

Unutilised credit facilities

Unutilised credit facilities amount to SEK 127.6 million (157.7) for the Group and SEK 41.4 million (58.5) for the Parent Company.

45

Accounting principles and notes to the accountsAmounts are in SEK thousand, unless otherwise stated.

General accounting principlesThe Annual Accounts have been drawn up in accordance with the Swedish Annual Accounts Act, the recommendations of the Swedish Financial Accounting Standards Council and the pronouncements of its Emerging Issues Task Force, with the exception of RR 18, information on earnings per share, which is a recommendation only for listed companies.

The company’s registered office, etc Volito AB runs its operations in the legal form of business entity, limited company, and its registered office is in Malmö. The head office address is Södra Förstadsgatan 4, SE-211 43 MALMÖ.

Reporting on segmentsThe primary basis for classification of the Group’s segments is the lines of business; Aviation, Real Estate, Structured Finance and Industry. Since the business area Industry just has been started it has been included in others in the information of lines of business (see note 1).

Classification, etcFixed assets, long-term liabilities and provisions essentially consist only of amounts that are expected to be recovered or paid after more than 12 months calculated from accounting year-end. Current assets and short-term liabilities consist essentially only of amounts that are expected to be recovered or paid within 12 months calculated from accounting year-end.

Valuation principles, etcAssets, provisions and liabilities have been valued at the acquisition value, unless otherwise stated below.

Intangible assets Intangible assets that are acquired by the company are reported at the acquisition value minus accumulated depreciation and write-downs.

Depreciation Depreciation is linear over the asset’s period of use and is shown as expenses in the income statement.

The following depreciation periods are applied: The Group Parent companySoftware 5 years –Goodwill 5 years –Other intangible assets 5 years –

Tangible fixed assetsTangible fixed assets that are acquired by the company are reported at the acquisition value less accumulated depreciation and write-downs.

Additional costsAdditional costs for value-adding improvements on intangible assets are capitalized. All other costs are recognized in the income statement as incurred.

Depreciation principles for tangible fixed assetsDepreciation according to plan is based on the original acquisition values reduced by the calculated residual value. Depreciation is linear over the period the asset is expected to be used.

The following depreciation periods are applied: The Group Parent companyReal estate and buildings 100 years –Equipment, tools, and installations 5 years 5 yearsComputer equipment 3–5 years 3–5 years

AircraftProportional depreciation is applied annually for aircraft so that the booked value is 15% of the acquisition value when the aircraft is 25 years old.

The fuselages of the aircraft that was used in training operations were written off over 15 years. The length of the life of the engines was based on the number of flying hours, and depreciation of these stemmed from the number of utilised flying hours.

Loan chargesDepreciation of prepaid loan charges is based on the term of the loan. In the Parent company, loan charges are debited from the profit/loss in the period to which they are related. In the Consolidated accounts, subsidiaries loan charges are charged to the profit/loss over the term of the loans. Loan charges refer to set-up charges and other charges associated with obtaining the loan.

Write-downsThe booked values of the Group’s assets are checked at each accounting year-end to determine if there is any indication of a need for write-downs. If there is such an indication, the recovery value of the asset is calculated as the highest of the utilisation value and net sales value. The asset is written down if the recovery value is less than the booked value. When calculating the utilisation value, the future cash flow is discounted to a rate of interest before tax that aims to take into consideration the market assessment of risk-free interest and the risk associated with the asset in question. An asset that is dependent on other assets is not considered to generate any independent cash flows. Such an asset is assigned instead to the smallest cash-generating unit where the independent cash flows can be stated.

A write-down is reversed if a change has taken place in the calculations used to determine the recovery value. A reverse is only carried out to the extent that the asset’s booked value does not exceed the booked value that would have been shown, with a deduction for the depreciation, if there was to be no write-down.

ReceivablesAfter individual valuation, receivables have been reported at the sum at which they are calculated to be received.

Receivables and debts denominated in foreign currenciesReceivables and liabilities in foreign currencies have been translated at the accounting year-end exchange rate in accordance with recommendation No.8 of the Swedish Financial Accounting Standards Council. Exchange rate differences for operating receivables and operating liabilities are included in the operating profit/loss, while differences for financial receivables and financial liabilities are reported among financial income and expense items.

Regarding aircraft reported in the aircraft leasing operation, financing and flow of income are tied to USD, which means extensive hedging. Therefore, long-term liabilities in USD that constitute financing of aircraft are not translated at accounting year-end.

To the extent that receivables and liabilities in foreign currencies have been secured under a forward contract, they have been translated to the forward rate.

InventoriesInventories, valued according to recommendation No.2:02 of the Swedish Financial Accounting Standards Council, are reported at the lowest of either the acquisition value or the net realisable value. In this way, the risk for obsolescence has been taken into account.

Short-term investmentsShort-term investments are valued according to the Swedish Annual Accounts Act as the lowest of either the acquisition value or the actual value.

Financial instruments and securities holdingsFinancial instruments intended to be held to maturity in the business are classified as fixed assets. Financial assets that consist of shares shall be measured at cost less any impairment losses. The assessment is made for each individual class of shares and an impairment loss is recognized if fair value is lower than carrying value or if the impairment is considered to be permanent, a write-down to fair value is made.

Other long-term receivables are valued at the sum at which they are calculated to be received.

Hedge accountingIn order to meet the requirements for hedge accounting, there has to be a designated hedging relationship to the hedged item and the hedge has to be highly effective. Gains and losses on the hedging instrument are recognized at the same time as profit and losses on the hedged items.

Hedging of group’s fixed interest rateInterest rate swaps are used for hedging of interest rate risk. Amounts that shall be paid or received according to the interest rate swap are currently recognized as interest income or interest expense.

The market value of the interest rate swap is calculated by analyzing discounted cash flows.

Real estate The company and the Group apply the Swedish Financial Accounting Standards Council’s recommendation RR24, Real estate. Real estate is reported in the balance sheet at the acquisition value with deductions for accumulated depreciation and any write-downs, as well as additions for any write-up. The actual value of real estate is stated in the supplementary information.

Remuneration to employeesBenefit-based pensions:The pensions for SAA were secured through insurance with Collectum. The SAA-group has been sold during the year.

Contribution-based pensions:For all other employees, the company’s obligation for each period is comprised of the amounts that the company will contribute for the period in question. Consequently, no actuarial adoption is required to calculate the obligation or cost, and there is no possibility of any actuarial profits or losses.

AN

NU

AL

RE

PO

RT

46

TaxThe company and the Group apply the Swedish Financial Accounting Standards Council’s recommendation RR.9, Income taxes. The total tax is made up of the current tax and deferred tax.

Taxes are reported in the income statement, except where the underlying transactionis charged to the equity, in which case the associated tax effect is reported in the equity. Current tax is tax that is to be paid or received relating to the current year. Adjustments of current tax relating to earlier periods come into this category. Deferred tax is calculated according to the balance sheet method based on temporary differences between the reported values and fiscal values of assets and liabilities. The sums are calculated based on how the temporary differences are expected to be evened out and by the application of the tax rates and tax rules that have been adopted or announced at accounting year-end. Temporary differences are not taken into account in the goodwill for the Group or in the differences relating to the participations in subsidiaries, associated companies and joint ventures that are not expected to be taxed in the foreseeable future. Untaxed reserves including deferred tax liabilities are reported in the legal entity. In the Consolidated accounts on the other hand, untaxed reserves are divided into deferred tax liabilities and equity.

Deferred tax receivables concerning deductible temporary differences and deductible deficiencies are only reported to the extent it is likely that these will mean lower tax payments in the future.

Provisions (excluding negative goodwill and deferred tax)A provision is reported in accordance with RR 16, Provisions, contingent liabilities and possible assets, in the balance sheet when the company has a formal or informal commitment as the result of an event that has occurred and it is likely that an outflow of resources is required to regulate the commitment, and that a reliable estimate of the amount can be made. Present value calculations are made to take time effects into account for important future payments.

Accounting of incomeAccounting of income is recognized according to the Swedish Financial Accounting Standards Council’s recommendation No.11, Income. Income accounting is done in the income statement when it is probable that the future economic benefits will go to the company and these benefits can be calculated in a reliable way. Income includes only the gross inflow of economic benefits that the company receives, or can receive, for its own use.

Income is reported at the actual value of what has been received, or will be received, with a deduction for rebates given. Remuneration is received in liquid funds and income is made up of the remuneration.

The criteria for income accounting are applied for each individual transaction.

Leasing – lesseesRecommendation RR 6:99 of the Swedish Financial Accounting Standards Council is applied. Leasing is classified in the Consolidated accounts as either financial or operational leasing. Financial leasing is used when the economic risks and advantages associated with ownership are essentially transferred to the lessee. If this is not the case, it is a matter of operational leasing. Leasing and rental income are reported on a linear basis over the term of the leasing contract.

Finance leases are recognized as assets in the consolidated balance sheet. The obligation to pay future leasing fees is reported with long-term and short-term liabilities. These assets are depreciated according to plan, while payments of the leasing fees are reported as interest expense and a reduction of the outstanding liability.

Operational leasing means that the leasing fee is taken in to the profit/loss account over the duration time based on the utilisation, which can differ from the payments during the year.

Items affecting comparabilityThe Swedish Financial Accounting Standards Council’s recommendation No. 4 is applied, which means that the effects on results of certain events and transactions of importance are specified within the relevant income concepts.

Consolidated financial statements The consolidated financial statements have been prepared according to recommendation RR 1:00 of the Swedish Financial Accounting Standards Council.

SubsidiariesSubsidiaries are companies in which the Parent company directly or indirectly has more than 50% of the votes or in other ways has a deciding influence over operational and financial control. Subsidiaries are reported according to the acquisition method. The acquisition method means that the acquisition of the subsidiary is considered as a transaction from which the Parent company indirectly acquires the assets of the subsidiary and takes over its debts. The income and expenses, identifiable assets and debts as well as the goodwill or negative goodwill of the acquired company are included in the Consolidated accounts from the day of acquisition.

GoodwillGoodwill for the Group arises when the acquisition value on acquiring participations in a subsidiary exceeds the actual value of the acquired company’s identifiable net assets. Goodwill is reported at the acquisition value with deductions for accumulated depreciation and write-downs, if any.

Associated companies and joint venturesShareholdings in associated companies and joint ventures, in which the Group has at least 20% and at most 50% of the votes or in other ways has significant influence over the operation and financial running of the company, are normally reported using the equity method.

A joint venture is a contractual business undertaking between two or more parties. The contract means that two or more parties have a joint control.

The equity method means that the value of shares in the associated company and the joint venture booked in the Group corresponds to the Group’s participation in the equity of the associated company and the joint venture as well as any residual value in the Group’s overall surplus value or under value. The Group’s participation in the companies result after tax adjusted for any amortization or resolution of acquired surplus or under value is reported in the Consolidated balance sheet as “Participation in associated companies’ result” and ”Participation in joint ventures’ result”. Profit shares built up after the acquisition of companies that have not yet been realised through dividends are allocated to the Group’s restricted equity. In cases where companies make losses, these are included in the Group’s non-restricted equity.

The associated company, Nordkap Holding AG and the joint venture VGS Aircraft Holding Ltd have been reported according to IFRS. No translation according to the Parent company’s accounting principles has been possible, due to practical difficulties.

Elimination of transactions between companies in the GroupReceivables and liabilities within the Group, transactions between companies in the Group, and associated unrealised profits are all totally eliminated. Unrealised profits deriving from transactions with associated companies and joint ventures are eliminated to the extent that the Group owns participations in the companies. Unrealised profits arising as a result of transactions with associated companies and joint ventures are eliminated in “Participations in associated companies” and ”Participation in joint ventures”. Unrealised losses are eliminated in the same way as unrealised profits, providing that there is no write-down requirement.

Foreign currency translation of foreign subsidiaries or other operations abroadThe translation of foreign currencies is done according to recommendation No.8 of the Swedish Financial Accounting Standards Council. The current method is applied for currency translation of income statements and balance sheets in independent foreign operations.

The current method means that all assets, provisions and liabilities are translated at the accounting year-end rate, and that all items in the income statement are translated at the average exchange rate. Exchange rate differences are posted as equity.

All foreign subsidiaries, associated companies and joint ventures are translated according to the current method.

Group contributions and shareholders’ contributionsThe company reports Group contributions and the shareholders’ contributions according to the pronouncements of the Emerging Issues Task Force of the Swedish Financial Accounting Standards Council.

The shareholders’ contribution is entered directly against equity at the recipient and is activated in shares and participations at the donor, to the extent that a write-down is not required.

Group contributions are reported according to economic significance. This means that the Group contributions submitted aimed at minimising the Group’s total tax are reported directly against retained profits after deduction for the current tax effect.

Group contributions on par with a dividend are reported as a dividend. This means that the Group contributions received and their current tax effect are reported in the income statement. The Group contributions submitted and their current tax effect are reported directly against retained profits.

Group contributions on par with a shareholders’ contribution are reported, taking into account the current tax effect, at the recipient directly against retained profits. The donor reports the Group contribution and its current tax effect as investment in participations in Group companies to the extent that a write-down is not required.

Application of the Swedish Financial Accounting Standards Council’s recommendationsThe Volito Group has chosen to follow the recommendations of the Swedish Financial Accounting Standards Council. There are no changes in the accounting principles since last year.

47

Information about the GroupThe company is a subsidiary of AB Axel Granlund, corporate identity number 556409-6013 with registered office in Malmö. AB Axel Granlund owns 83.3% (83.3%) of the capital and votes in the Volito Group and prepares the Consolidated accounts for the largest Group.

Of the Group’s total purchases and sales in Swedish kronor, 2% of the purchases and 0% of the sales apply to other companies within the group of companies to which the Group belongs.

Of the Parent company’s total purchases and sales in Swedish kronor, 31% of the purchases and 98% of the sales apply to other companies within the group of companies to which the company belongs.

Information about acquisitions and disposals during the periodAs a part of the Group’s continued expansion, Volito has established a new company, Hydraulic Supplier i Norden AB and purchased Hydro Swede in Stockholm AB.

Related partiesClose relationships that involve a controlling influenceThe GroupThe Group is owned by AB Axel Granlund (83.3%), as well as Lennart Blecher (partly through companies) 9.0%, and Bo Olsdal (through companies) and sons 7.7%.

Parent companyIn addition to the close relationships that are stated for the Group, the Parent company has close relationships that mean a controlling influence with its subsidiaries, see note 24.

Related party transactions The GroupThe transactions that take place between companies concern normally occurring transactions such as administration fees, rent, interest and loans. Prices are set according to market conditions.

With associated companies and joint venturesAs of 31 December 2010, associated companies had a debt to the Volito Group ofSEK 582.9 million (516.8). The largest item relates to a loan that Volito Cyprus Holding made to VGS Aircraft Holding Ltd for SEK 453.4 million (403.4) and which can partly be converted into shares in VGS. Another large item relates to the loan made by Volito AG to Nordkap Holding AG for SEK 87.6 million (84.2). Transactions with associated companies are priced according to market conditions.

With key employees For salaries and other remuneration, expenses and obligations concerning pensions and similar benefits and agreements concerning severance payments to the Board and the CEO, see note 6.

Important events after accounting year-endIn early 2011 Volito Fastigheter made an acquisition consisting of six strategically located properties in Malmö. It is the largest single acquisition since the business started and means that Volito Fastigheter has raised the market value of its portfolio by 24%.

Volito Industri AB acquired Hydratech AB at the beginning of January 2011.

AN

NU

AL

RE

PO

RT

Note 1 Information on lines of business Aviation Real Estate Structured Finance Industry/Other Elimination Total

2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009

IncomeExternal sales 216 144 231 008 117 136 109 139 – – 726 764 – – 334 006 340 911Internal sales – – 2 361 2 267 – – 7 385 9 671 -9 746 -11 938 – –

Total income 216 144 231 008 119 497 111 406 – – 8 111 10 435 -9 746 -11 938 334 006 340 911

Operating resultOperating result per line of business -3 030 26 540 68 996 61 254 -173 -232 -11 270 -12 472 – – 54 523 75 090

Interest expenses -11 539 -19 792 -27 513 -27 436 -2 019 -2 575 -7 865 -11 703 1 927 2 675 -47 009 -58 831Interest income 4 927 106 2 088 1 929 2 198 2 807 2 771 9 120 -1 927 -2 675 10 057 11 287Profit participations/dividends 55 409 63 973 38 125 34 295 -511 -42 712 11 059 561 – -1 121 104 082 54 996Tax expenses for the year -1 161 -40 946 -11 793 -6 004 – – 8 130 -2 236 – – -4 824 -49 186Minority interests -22 340 -30 763 – 985 – – -532 – – – -22 872 -29 778

Net result for the year 22 266 -882 69 903 65 023 -505 -42 712 2 293 -16 730 – -1 121 93 957 3 578

Aviation Real Estate Structured Finance Industry/Other Elimination Total2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009

Other informationAssets 787 138 833 357 1 149 885 1 072 715 107 809 101 403 54 689 129 549 -12 304 -145 927 2 087 217 1 991 097Equity share/ securities 346 430 361 510 387 667 387 667 58 000 56 254 59 448 24 008 – – 851 545 829 439

Total assets 1 133 568 1 194 867 1 537 552 1 460 382 165 809 157 657 114 137 153 557 -12 304 -145 927 2 938 762 2 820 536

Liabilities/provisions/minority interests 579 594 639 107 883 587 856 592 93 710 87 660 521 706 559 063 -12 304 -146 275 2 066 293 1 996 147

Investments in tangible assets 21 566 15 744 94 020 14 968 – – 585 340 – – 116 171 31 052Depreciation of tangible assets -34 845 -35 142 -9 991 -9 924 – – -355 -336 – – -45 191 -45 402Costs, exceeding depreciation, not matched by payments -1 698 -1 154 -530 -487 – – – – – – -2 228 -1 641

The internal price between the Group’s various segments is set according to the “arm’s length” principle, i.e. between parties who are independent of each other, well-informed and with an interest in the transactions.

Sales between the Group’s various segments relate to administrative fees and rents. The administrative fees have been allocated according to actual costs and utilisation. The rents conform to market conditions.

Loans between Group companies have been marked for interest according to the current finance policy. The interest rates conform to market conditions.

The segments’ result, assets and liabilities (including provisions) include directly attributable items and items that can be allocated to the segments in a reasonable and reliable way.

The segments’ investments in tangible fixed assets include all investments, except investments in short-term inventories and inventories of minor value.

Costs, exceeding depreciation, not matched by payments includes depreciation on prepaid borrowing expences and capitel losses on tangible assets.

48

Lines of businessLines of business constitute the Group´s primary basis for classification, which is described in the administration report. The new business area, Industry, is included in others, since the business is in the start up phase.

Note 2 Net turnover breakdown 2010 2009

The Parent companyIncome from administration 8 058 10 697

8 058 10 697

Note 3 Other operating income2010 2009

The GroupCompensation for land redemption 11 500 –Exchange rate differences 3 144 6 195Remunerations from depositions 1 389 –Capital gains from sale of fixed assets – 651Other 708 195

16 741 7 041

The Parent companyOther 3 1

3 1

Volito Fastigheter AB has received a non-recurrent remuneration from Malmö Stad regarding land redemption.

Note 4 Auditing: fees and expenses2010 2009

The GroupKPMGAudit assignments 1 606 1 632Other assignments 171 107OTHER AUDITORSAudit assignments 21 34Other assignments – 10

The Parent companyKPMGAudit assignments 339 298Other assignments 15 30

Note 5 Leasing income related to operational leasing2010 2009

The GroupAgreed future leasing income with reference to non-revocable contracts in the aviation business due for payment: Within one year 23 955 45 089 Between one and five years 19 884 50 592

43 839 95 681

Important leasing agreementsAviationIn March 2002, Volito South Pacific AB acquired a Boeing 737-33A. The aircraft is leased to Norwegian Air Shuttle, Norway. The leasing agreement runs until October 2011.

In 2003, Volito Aviation Deux Lux AB acquired two Boeing 737-4C9 aircraft. In December 2006, a new leasing agreement was signed for one of the aircraft with Blue Air of Rumania until the end of March 2012. Blue Air could not meet the pay-ment obligations and the aircraft was taken back. A new leasing agreement has been signed with Enter Air, Poland, to be delivered in January 2011. The leasing agreement runs until 31 May 2014. In March 2007, a leasing agreement was signed with Ukraine International of Ukraine regarding the other aircraft. The agreement runs until 22 March 2012.

Translation of contracts in USD has been done at the accounting year-end exchange rate of 1 USD = SEK 6.8025 (previous year: USD 1 = SEK 7.2125).

Real EstateAccording to the contract portfolio at year-end, rental income in the Volito Fastig-heter group and Volito AB was divided between 95% commercial properties and 5% residential. The commercial rental income was divided between 171 contracts in a number of different sectors. With the aim of limiting exposure to credit losses, regular follow-ups are made of tenants’ credit ratings. There is no sector or tenant that accounts for more than 10% of the rental income.

The contract portfolio for commercial premises in the Volito Group expires as below. The stated amounts refer to contracted closing rents in the portfolio.

2010 2009

Within one year 14 797 17 279Between one and five years 76 926 57 723Later than five years 25 774 26 571

117 497 101 573

Note 6 Staff and personnel costs

of which, of which,Average number of employees 2010 men 2009 men

Parent companySweden 5 40% 6 50%

SubsidiariesSweden 70 73% 90 70%USA 35 66% 39 72%Ireland 6 17% 7 29%

Total in subsidiaries 111 68% 136 68%

Group total 116 66% 142 68%

Gender distribution in 2010 2009company management Percentage of women Percentage of women

The GroupBoard of Directors 0% 0%

Salaries, other remuneration and social security expenses 2010 2009

Salaries and Social security Salaries and Social securityremuneration expenses remuneration expenses

Parent company 5 407 3 156 6 856 4 177(of which, pension costs) 1) (1 123) 1) (1 528)Subsidiaries 61 775 21 346 63 294 18 123(of which, pension costs) (5 917) (6 852)

Total for the Group 67 182 24 502 70 150 22 300(of which, pension costs) 2) (7 040) 2) (8 380)

1) Of the Parent company’s pension costs, SEK 747 K (previous year: SEK 640 K) refers to the group: Board and CEO. The company has no outstanding pension obligations to them.

2) Of the Group’s pension costs, SEK 1 706 K (previous year: SEK 1 510 K) refers to the group: Board and CEO. The Group has no outstanding pension obligations to them.

Salaries and remunerations by country andby the Board and CEO and other employees

Board and CEO

2010Other

employeesBoard

and CEO

2009Other

employees

Parent company Sweden 3 346 2 061 3 023 3 833

Subsidiaries Sweden 9 431 34 738 7 102 35 116

Subsidiaries abroad USA 667 10 252 726 11 484Ireland – 6 549 – 8 526Singapore – – – 199Switzerland 138 – 141 –

Subsidiaries total 10 236 51 539 7 969 55 325

Group total 13 582 53 600 10 992 59 158

Of the salaries and remuneration paid to the other members of staff in the Group, SEK 7 820 K (SEK 7 093 K) refers to leading executive managers other than the Board and the CEO.

49A

NN

UA

L R

EP

OR

T

Severance paymentsAgreements have been signed with executive managers regarding severance payments amounting to between five months’ and one year’s salary.

Absence due to illnessAs there are only six people employed by the parent company there is no obligation to account for absence due to illness.

Note 7 Depreciation and write-downs of tangible and intangible fixed assets

2010 2009

The GroupOther intangible assets -261 -300Goodwill -534 -1 657Real estate -9 981 -9 916Aircraft -31 711 -31 596Aircraft inventories -168 -168Equipment, tools and installations -3 331 -3 722

-45 986 -47 359

The Parent companyEquipment, tools and installations -355 -334

-355 -334

Note 8 Other operating expenses2010 2009

The GroupExchange losses on receivables/liabilities of an operating nature -769 -16Capital loss -2 095 -244Other -919 –

-3 783 -260

Note 9 Result from participations in Group companies2010 2009

The GroupCapital loss from disposal of participations 5 590 -153

5 590 -153

The Parent companyDividends received 49 529 40 774Capital loss from disposal of participations -10 642 -136Write-downs -22 717 -10 053Reversed write-downs 10 053 –

26 223 30 585

Not 10 Result from participations in joint ventures2010 2009

Result from participations in joint ventures 49 269 63 973

49 269 63 973

Note 11 Result from participations in associated companies2010 2009

The GroupDividend 337 204Capital gain/loss from disposalof participations and receivables 3 541 -6 029Write-downs of receivables -102 -1 121Reversed write-downs – 6 504Profit participations in associated -1 311 -41 795Other costs – 470

2 465 -41 767

The Parent company Dividend 337 204Capital gain/loss from disposal of participations 1 874 -6 029Write-downs of receivables -102 –Reversed write-downs – 6 504Other costs – 470

2 109 1 149

Note 12 Result from other securities andreceivables that are fixed assets

2010 2009

The GroupDividend 38 358 34 312Capital loss from disposal of participations and receivables 8 505 -1 369Reversed write-downs -105 –

46 758 32 943

The Parent companyDividend 34 202 30 572Capital loss from disposals 1 704 -1 369Reversed write-downs -105 –

35 801 29 203

Note 13 Interest income and similar profit/loss items2010 2009

The GroupInterest income, others 2 468 3 204Leasing income 1 934 1 498Exchange rate difference 5 572 –Profit on short-term investments – 149Reversed write-downs of short-term investments 36 716Dividend from short-term investments 47 41Reversed tax interest – 5 679

10 057 11 287

The Parent companyInterest income, Group companies 2 151 2 534Interest income, others 1 1Exchange profit 698 –Profit on short-term investments – 149Reversed write-downs of short-term investments 36 716Dividends 47 41Reversed tax interest – 5 679

2 933 9 120

Note 14 Interest expenses and similar profit/loss items2010 2009

The GroupInterest expenses, Group companies – -52Interest expenses, others -43 672 -45 422Tax interest – -1 225Depreciation on prepaid borrowing expenses -1 698 -1 397Exchange rate difference -899 -10 267Others -740 -468

-47 009 -58 831The Parent companyInterest expenses, Group companies -611 -288Interest expenses, others -7 316 -10 301Exchange rate differences – -927Others -640 -422

-8 567 -11 938

Note 15 Exch. rate differences that have affected the profit/loss2010 2009

The GroupExchange rate differences that have affected operating result 2 375 6 179Financial exchange rate differences 4 673 -10 267

7 048 -4 088

The Parent companyFinancial exchange rate differences 698 -927

50

Note 16 Tax2010 2009

The GroupCurrent tax -2 850 -30 823Deferred tax -1 974 -18 363

Total reported tax -4 824 -49 186

2010 2009

The Parent companyDeferred tax 8 044 4 236

Total reported tax 8 044 4 236

Reconciliation of effective tax rate 2010 2009Per cent Amount Per cent Amount

The GroupResult before tax 121 653 82 542Tax according to the current tax rate for the Parent company 26,3% -31 995 26,3% -21 709Effect of other tax rates for foreign subsidiaries -6,8% 8 232 -7,7% 6 344Depreciation on group wise surplus values 0,2% -295 0,9% -731Non-deductible expenses 0,6% -706 6,8% -5 640Tax-exempt income -13,6% 16 566 -14,9% 12 258Tax losses carryforward not recognizedas deferred tax assets – – 1,1% -921Previously unassessed deductible deficiency 0,9% -1 053 -0,1% 72Tax relating to previous years -1,7% 2 079 47,2% -38 973Taxable result from disposal of shares 1,5% -1 858 2,4% -1 982Unreported tax on associated companies’ profits -3,4% 4 192 -2,4% 1 968Others 0,0% 14 -0,2% 128

Reported effective tax 4,0% -4 824 59,6% -49 186

Reconciliation of effective tax rate 2010 2009Per cent Amount Per cent Amount

The Parent companyResult before tax 47 942 46 971Tax according to the current tax ratefor the Parent company 26,3% -12 609 26,3% -12 353Non-deductible expenses 13,0% -6 237 6,3% -2 960Tax-exempt income -51,7% 24 763 -47,3% 22 231Tax relating to previous years -8,3% 3 984 1,6% -739Taxable result from disposal of shares 3,9% -1 857 4,1% -1 943

Reported effective tax -16,8% 8 044 -9,0% 4 236

Tax items charged to equity 2010 2009

The Parent companyEstimated tax in received/submitted Group contributions 7 374 6 472

Note 17 Other intangible assets2010-12-31 2009-12-31

The GroupAccumulated acquisition valuesAt beginning of year 1 731 2 132New acquisitions 21 106Sales and disposals – -507

At year-end 1 752 1 731

Accumulated depreciation according to planAt beginning of year -1 099 -1 097Sales and disposals – 298Depreciation according to plan for the year -261 -300

At year-end -1 360 -1 099

Reported value at end of period 392 632

The item mainly consists of computer software set up as an asset.

Note 18 Goodwill2010-12-31 2009-12-31

The GroupAccumulated acquisition valuesAt beginning of year 8 282 8 282Acquisition of subsidiaries 9 000 –Disposed subsidiaries -8 282 –

At year end 9 000 8 282

Accumulated depreciation according to planAt beginning of year -7 570 -5 913Disposed subsidiaries 8 104 –Depreciation according to plan for the year -534 -1 657

– -7 570

Reported value at end of period 9 000 712

Note 19 Real Estate 2010-12-31 2009-12-31

The Group Accumulated acquisition valuesAt beginning of year 1 082 350 1 080 514New acquisitions 68 127 983Disposed subsidiaries -3 135 –Reclassifications 13 513 853

1 160 855 1 082 350

Accumulated depreciation according to planAt beginning of year -113 726 -103 810Disposed subsidiaries 489 –Depreciation according to plan for the year -9 981 -9 916

-123 218 -113 726

Reported value at end of period 1 037 637 968 624

Of which, land 2010-12-31 2009-12-31

The GroupAccumulated acquisition values 124 903 111 159

Reported value at end of period 2010-12-31 2009-12-31

The GroupReal estate 1 037 637 965 931Buildings and land – 2 693

1 037 637 968 624

Cost for construction in progress relating to properties classified as real estate are entered under the item on-going new construction, extensions or rebuilding:

2010-12-31 2009-12-31

The Group 27 296 14 939

Information on actual value of real estate 2010-12-31 2009-12-31

The GroupAccumulated actual valueAt beginning of year 1 401 800 1 356 900At year-end 1 603 100 1 401 800

On 31 December 2010, the company carried out an external market valuation of the Group’s real estate. The valuation was done according to the guidelines applied by SFI/IPD Swedish Real Estate Index. Based on this valuation, the market value of the real estate amounts to SEK 1 603.1 million (1 401.8). The value is calculated as a yield at an average 5.8% (6.5%).

51A

NN

UA

L R

EP

OR

T

Real Estate - Effect on profit/loss for the period2010-12-31 2009-12-31

The GroupRental income 107 997 111 406Direct costs for real estate that generated rental income during the period (operational and maintenance costs, property tax and ground rent) -26 843 -26 216

2010-12-31 2009-12-31

The Group Tax assessment value, buildings (in Sweden) 591 372 507 700Tax assessment value, land (in Sweden) 160 409 132 925

Borrowing expensesNo capitalised interest has been included in the acquisition values.

LeasingProperties leased under operational leasing contracts are included with the following amounts: 2010-12-31 2009-12-31

The GroupAcquisition values 1 160 855 1 079 215Accumulated depreciation at beginning of year -113 726 -103 431Depreciation for the year -9 492 -9 853

1 037 637 965 931

The contract portfolio for commercial premises within the Volito Group as of 31 December 2010 expires according to the table below. Stated amounts refer to contracted closing rents in the portfolio.

2010-12-31 2009-12-31

The GroupWithin one year 14 797 17 279Between one and five years 76 926 57 723Later than five years 25 774 26 571

117 497 101 573

Counterparty risks in rental incomesAccording to the contract portfolio at year-end, rental income was divided between 95% commercial properties and 5% residential. The commercial rental income was divided between 171 contracts in a number of different sectors. With the aim of limit-ing exposure to credit losses, regular follow-ups are made of tenants’ credit ratings. No sector or tenant accounts for more than 10% of the rental income.

Note 20 Aircraft2010-12-31 2009-12-31

The Group Accumulated acquisition valuesAt beginning of year 443 847 439 212New acquisitions 20 261 9 873Disposed subsidiaries -44 923 –Sales/disposals -1 230 -4 119Exchange rate differences for the year -1 001 -1 119

416 954 443 847

Accumulated depreciation according to planAt beginning of year -206 010 -177 990Disposed subsidiaries 24 082 –Sales/disposals 1 099 2 967Depreciation according to plan for the year -31 711 -31 596Exchange rate differences for the year 641 609

-211 899 -206 010

Reported value at end of period 205 055 237 837

LeasingAircraft that are leased under operational leasing contracts are included with the following amounts:

2010-12-31 2009-12-31

The GroupAcquisition values 416 954 398 463Accumulated depreciation at beginning of year -183 633 -156 345Depreciation for the year -28 266 -27 288

205 055 214 830

2010-12-31 2009-12-31

The GroupThe period’s leasing income amounts to: 34 696 52 249

Future leasing income that relates to non-revocable operational leasing contracts falls due for payment as below:

2010-12-31 2009-12-31

The Group Within one year 23 955 45 089Between one and five years 19 884 50 592

43 839 95 681

The greater part of leasing income is USD-based. Translation has been done at the accoun-ting year-end exchange rate of USD 1 = SEK 6.8025 (previous year: USD 1 = SEK 7.2125).

Note 21 Aircraft inventories2010-12-31 2009-12-31

The GroupAccumulated acquisition valuesAt beginning and end of year 1 174 1 174

Accumulated depreciation according to plan At beginning of year -936 -768Depreciation according to plan for the year based on acquisition values

-168 -168

-1 104 -936

Reported value at end of period 70 238

Note 22 Equipment, tools and installations2010-12-31 2009-12-31

The Group Accumulated acquisition valuesAt beginning of year 30 945 25 237New acquisitions 1 913 6 233Acquisition of subsidiaries 720 –Sales/disposals -4 241 -38Disposed subsidiaries -17 535 –Exchange rate differences for the year -741 -487

11 061 30 945

Accumulated depreciation according to planAt beginning of year -13 505 -10 029Acquisition of subsidiaries -679 –Sales/disposals 1 456 –Disposed subsidiaries 9 704 –Depreciation according to plan for the year based on acquisition values -3 331 -3 722Exchange rate differences for the year 365 246

-5 990 -13 505

Reported value at end of period 5 071 17 440

The Parent company Accumulated acquisition valuesAt beginning of year 5 413 5 115New acquisitions 585 298Sales/disposals -426 –

5 572 5 413

Accumulated depreciation according to planAt beginning of year -2 307 -1 973Sales/disposals 426 –Depreciation according to plan for the year based on acquisition values -355 -334

-2 236 -2 307

Reported value at end of period 3 336 3 106

Borrowing expensesNo capitalised interest has been included in the acquisition values.

LeasingEquipment, tools and installations obtained through financial and operational leasing agreements amount to insignificant amounts.

52

Note 23 Construction in progress and advances with respect to tangible fixed assets

2010-12-31 2009-12-31

The GroupAt beginning of year 14 939 1 830Reclassifications -13 513 -853Investments 25 870 13 962

Reported value at end of period 27 296 14 939

Borrowing expensesNo capitalised interest has been included in the acquisition values.

Note 24 Participations in Group companies2010-12-31 2009-12-31

Accumulated acquisition valuesAt beginning of year 564 493 550 443New acquisitions 1 051 19 279Submitted shareholders’ contribution 20 117 18 457Sales -14 923 -23 686Reclassifications -7 999 –

562 739 564 493

Accumulated write-downsAt year beginning and end -19 953 -9 900Reversed write-downs for the year 10 053 –Write-downs for the year -22 717 -10 053

-32 617 -19 953

Reported value at end of period 530 122 544 540

Note 24 continued.List of the Parent company’s and Group’s participations in Group companies

2010-12-31 2009-12-31Reported Reported

Subsidiary/Corp. ID no./Registered office No. of shares Share in % 1) value value

Volito Aviation AB, 556603-2800, Malmö, Sweden 1 222 000 100,0 173 789 173 789 Volito South Pacific AB, 556004-0452, Malmö, Sweden 100,0 Volito Altitude Partner AB, 556627-7280, Malmö, Sweden 100,0 Volito Altitude KB, 916539-3852, Malmö, Sweden 100,0 Volito Leisure Partner AB, 556631-7987, Malmö, Sweden 100,0 Volito Aviation Leisure KB, 916543-6115, Malmö, Sweden 100,0 Volito Commuter KB, 916550-3872, Malmö, Sweden 100,0 Volito Aviation Camilla HB, 969707-4418, Malmö, Sweden 100,0 Volito Aviation Annika HB, 969688-2647, Malmö, Sweden 100,0 Volito Aviation Cornelia HB, 969707-7387, Malmö, Sweden 100,0 Volito Aviation November 2003 AB, 556604-0498, Malmö, Sweden 100,0 Volito Aviation Deux Lux AB, 556604-0506, Malmö, Sweden 100,0 Volito Aviation Finance AB, 556435-2952, Malmö, Sweden 100,0 Volito Aviation Christine AB, 556585-5326, Malmö, Sweden 100,0 Volito Overseas AB, 556507-0223, Malmö, Sweden 100,0 Volito Aviation September 2007 AB, 556733-0955, Malmö, Sweden 100,0 Volito Aviation Oktober 2007 AB, 556733-1029, Malmö, Sweden 100,0 Volito Aviation Services AB, 556673-5782, Malmö, Sweden 80,0 Volito Aviation Services Ltd, 436832, Dublin, Ireland Volito Aviation Services Asia Pte Ltd, 200708179R, Singapore Volito Aviation AG, CH - 170.3.027.511-0, Zug, Switzerland 51,0 Volito Cyprus Holding Ltd, HE 173483, Limassol, Cyprus Regana Company Ltd, HE 152714, Limassol, Cyprus Bragina Company Ltd, HE 153654, Limassol, Cyprus Gribanova Company Ltd, HE 155087, Limassol, Cyprus Volito TakeOff Ltd, HE 158317, Limassol, Cyprus Volito Global Ltd, HE 162753, Limassol, Cyprus Volito Universal Ltd, HE 162951, Limassol, Cyprus Volito Sunrise Ltd, HE 170888, Limassol, Cyprus Volito Cirrus Ltd, HE 167295, Limassol, Cyprus Volito Aviation Ltd, 324448, Dublin, Ireland 100,0Volito Fastigheter AB, 556539-1447, Malmö, Sweden 423 000 100,0 312 014 312 014 Volito Fastighetsutveckling AB, 556375-6781, Malmö, Sweden 100,0 Volito Fastighetsförvaltning AB, 556142-4226, Malmö, Sweden 100,0 Fastighetsbolaget Flygledaren HB, 916760-2035, Malmö, Sweden 100,0 HB Ran Förvaltning, 916766-5224, Malmö, Sweden 100,0 Volito Fastighetskupolen AB, 556629-1117, Malmö, Sweden 100,0 Fastighets AB Centralposthuset i Malmö, 556548-1917, Malmö, Sweden 100,0 Volito Leisure AB, 556541-9164, Malmö, Sweden 100,0 KB Snickaren 208, 969684-1023, Malmö, Sweden 100,0 Volito Agatel AB, 556677-1472, Malmö, Sweden 100,0 Volito Fosiestenen AB, 556690-0873, Malmö, Sweden 100,0 Volito Mosippan AB, 556131-7979, Malmö, Sweden 100,0 Volito Delfinen AB, 556630-7988, Malmö, Sweden 100,0 Volito Proveniens AB, 556758-2415, Malmö, Sweden 100,0Kattegat Invest AB, 556381-1388, Malmö, Sweden 6 500 100,0 638 638BF Scandinavian Aviation Academy AB,556182-0910, Västerås, Sweden – – – 11 609Volito 2001 AB, 556599-8217, Malmö, Sweden 11 000 100,0 1 324 3 145Volito Industri AB, 556662-5835, Malmö, Sweden 9 100 91,0 910 109 Volito Automation AB, 556669-2157, Malmö, Sweden 10 000 100,0 1 020 Hydro Swede i Stockholm AB, 556235-5130, Stockholm, Sweden Volito Oktober 2006 AB (Hydraulic Supplier 10 000 100,0 i Norden AB), 556718-2091, Malmö, SwedenVolito Malaysian Holding AB, 556662-7609, Malmö, Sweden 1 000 100,0 121 900Volito AG, CH-170.3.026.619-3, Zug, Switzerland 100 100,0 40 596 40 596Other subsidiaries, dormant 730 720

530 122 544 540

1) Refers to the share of the capital, which also agrees with the share of votes for the total number of shares.

53A

NN

UA

L R

EP

OR

T

Note 25 Receivables in the Group companies2010-12-31 2009-12-31

The Parent companyAccumulated acquisition valuesAt beginning of year 86 751 93 448Additional receivables 20 379 1 133Settlement of receivables -5 633 -3 003Exchange rate differences for the year 3 471 -4 827

104 968 86 751

Accumulated write-downsAt beginning of year -1 390 -1 469Exchange rate differences for the year -56 79

-1 446 - 1 390

Reported value at end of period 103 522 85 361

Note 26 Participations in joint ventures2010-12-31 2009-12-31

The Group Accumulated acquisition valuesAt beginning of year 317 012 274 430Result from participation in joint ventures 49 269 63 973Exchange rate differences for the year -19 851 -21 391

Reported value at end of period 346 430 317 012

List of the Parent company’s and Group’sparticipations in joint ventures 2010-12-31

ProportionShares of equity’s Reported

Joint venture /no. as value in value in/ Corp. ID no. Reg. office % the Group the Parent

Indirectly ownedVGS Aircraft Holding (Ireland) Ltd, 43005, Dublin, Ireland 25,5 346 430 –

Reported value at end of period 346 430 –

List of the Parent company’s and Group’sparticipations in joint ventures 2009-12-31

ProportionShares of equity’s Reported

Joint venture /no. as value in value in/ Corp. ID no. Reg. office % the Group the Parent

Indirectly ownedVGS Aircraft Holding (Ireland) Ltd, 43005, Dublin, Ireland 25,5 317 012 –

Reported value at end of period 317 012 –

Note 27 Receivables in joint ventures2010-12-31 2009-12-31

The Group Accumulated acquisition valuesAt beginning of year 403 429 418 129Additional receivables 72 936 –Reclassifications – 14 425Exchange rate differences for the year -22 933 -29 125

Reported value at end of period 453 432 403 429

Note 28 Participations in associated companies2010-12-31 2009-12-31

The Group Accumulated acquisition valuesAt beginning of year 64 837 111 533New acquisitions 1 602 298Sales -3 808 -561Participations in the result of associated companies for the year

-1 311 -41 791

Reclassifications 1 049 320Exchange rate differences for the year 2 259 -4 962Write-downs for the year1) -102 –

64 526 64 837

The Parent company Accumulated acquisition valuesAt beginning of year 12 065 18 509New acquisitions 102 298Sales -5 473 -7 062Reclassifications – 320

6 694 12 065Accumulated write-downs At beginning of year -1 436 -7 940Sales – 6 504Write-downs for the year1) -102 –

-1 538 -1 436

Reported value at end of period 5 156 10 629

1) Reversed write-downs and write-downs for the year have been posted in the result from participation in associated companies in the income statement.

List of the Parent company’s and Group’sparticipations in associated companies 2010-12-31

ProportionShares of equity’s Reported

Associated company /no. as value in value in/ Corp. ID no. Reg. office % 1) the Group the Parent

Directly ownedAB Nordsidan, 556058-3212, Malmö, Sweden 34,0 5 058 5 156

Indirectly ownedNordkap Holding AG,CH-170.3.026.601- 4, Zug, Switzerland 40,0 59 021 Nordkap Bank AG, CH-020.3.907.391-5, Zug, Switzerland –Nordkap Energy Holding AG, CH-170.3.031.564-5, Zug, Switzerland 50,0 -1 020HydX AB, 556791-5326, Ystad, Sweden 40,0 1 467

64 526 5 156

List of the Parent company’s and Group’s participations in associated companies 2009-12-31

ProportionShares of equity’s Reported

Associated company /no. as value in value in/ Corp. ID no. Reg. office % 1) the Group the Parent

Directly ownedGalenica AB, 556567-7449, Malmö, Sweden 20,1 3 525 5 473AB Nordsidan, 556058-3212, Malmö, Sweden 34,0 5 058 5 156

Indirectly ownedNordkap Holding AG,CH-170.3.026.601- 4, Zug, Switzerland 40,0 57 234 Nordkap Bank AG, CH-020.3.907.391-5, Zug, Switzerland –Nordkap Energy Holding AG, CH-170.3.031.564-5, Zug, Switzerland 50,0 -980

64 837 10 629

1) Refers to owned share of the capital, which also corresponds with the share of the votes for the total number of shares.

54

Note 29 Receivables in associated companies2010-12-31 2009-12-31

The Group Accumulated acquisition valuesAt beginning of year 85 271 90 078Additional receivables 3 000 –Exchange rate differences for the year 3 458 -4 807

91 729 85 271

Accumulated write-downsAt beginning of year -1 043 -1 121Exchange rate differences for the year -42 78

-1 085 -1 043

Reported value at end of period 90 644 84 228

Note 30 Holdings in other long-term securities2010-12-31 2009-12-31

The Group Accumulated acquisition valuesAt beginning of year 448 559 440 310Additional assets – 8 261Deductible assets -6 896 -1 869Reclassifications – 1 857

441 663 448 559Accumulated write-downsAt beginning of year -969 -969Reversed write-downs during the year -105 –

-1 074 -969

Reported value at end of period 440 589 447 590

2010-12-31 2009-12-31

The Parent companyAccumulated acquisition valuesAt beginning of year 417 385 409 136Additional assets – 8 261Deductible assets -6 896 -1 869Reclassifications – 1 857

410 489 417 385Accumulated write-downsAt beginning of year -969 -969Reversed write-downs during the year -105 –

-1 074 -969

Reported value at end of period 409 415 416 416

2010-12-31 2009-12-31Market Market

value or Reported value or ReportedList of securities equivalent value equivalent value

The GroupPeab AB (publ) 873 063 382 707 701 500 382 707CTT Systems AB (publ) 45 269 44 498 43 331 44 498Haldex AB (publ) – – 8 900 6 896Bear Stearns (investment fund) 1 484 1 938 1 938 1 938Båstadtennis och Hotell AB – 3 960 – 3 960Custos – 6 186 – 6 186Other – 1 300 – 1 405

919 816 440 589 755 669 447 590

2010-12-31 2009-12-31Market Market

value or Reported Reported ReportedList of securities equivalent value value value

The Parent CompanyPeab AB (publ) 777 884 356 493 625 025 356 493CTT Systems AB (publ) 45 269 44 498 43 331 44 498Haldex AB (publ) – – 8 900 6 896Bear Stearns (investment fund) 1 484 1 938 1 938 1 938Custos – 6 186 – 6 186Other – 300 – 405

824 637 409 415 679 194 416 416

Note 31 Deferred taxDeferred Deferred

recoverable taxes tax liabilities Net

The Group 2010Accelerated depreciationReal estate – 22 984 -22 984Aircraft – 45 013 -45 013Group surplus valueReal estate – 18 687 -18 687Aircraft – 525 -525Deductible deficiency 34 786 – 34 786

34 786 87 209 -52 423Offset -9 -9 –

Net deferred tax liabilities 34 777 87 200 -52 423

The Group 2009Accelerated depreciationReal estate – 20 202 -20 202Aircraft – 51 904 -51 904Tax allocation reserves – 285 -285Group surplus valueReal estate – 18 140 -18 140Aircraft 79 590 -511Deductible deficiency 35 181 – 35 181

35 260 91 121 -55 861Offset -1 540 -1 540 –

Net deferred tax liabilities 33 720 89 581 -55 861

The Parent company 2010Deductible deficiency 23 995 – 23 995

Net deferred tax liabilities 23 995 – 23 995

The Parent company 2009Deductible deficiency 23 325 – 23 325

Net deferred tax liabilities 23 325 – 23 325

The change in the Parent company between years has been shown as deferred tax expenses/income, except those amounts that according to note 38 are charged directly against equity.

Deferred taxes are valued based on the nominal rate of tax. The only exception to this rule is the acquisition of material assets in which the tax assessment was a significant part of the business transaction when the deferred tax is valued based on the purcha-se price. All deferred taxes have been valued at a nominal amount on 31 December 2010 (the same applies for the previous year).

Unreported deferred recoverable taxesDeductible temporary differences and fiscal deductible deficiencies for which deferred recoverable taxes have not been reported in the income statement and balance sheet:

2010-12-31 2009-12-31

Fiscal deficit 18 994 14 589

The fiscal deficit is relating to Swedish subsidiaries where the ownership is less than 90% and hence they can not be set of against profits in other companies by group contributions.

55A

NN

UA

L R

EP

OR

T

Note 32 Prepaid borrowing expenses2010-12-31 2009-12-31

The Group Accumulated acquisition valuesAt beginning of year 12 122 12 216Additional items 1 425 –Settled items -3 062 -94Redeemed loan -524 –

9 961 12 122

Accumulated depreciationsAt beginning of year -8 666 -7 363Settled items 3 062 94Depreciations for the year -1 174 -1 397

-6 778 -8 666

Prepaid borrowing expenses 3 183 3 456

Reported value at year-end, long-term component 2 009 2 761Reported value at year-end, short-term component 1 174 695

3 183 3 456

Note 33 Financial leasing agreementsOne of the properties in Volito Fastigheter Group is leased out on a financial leasing agreement.

2010-12-31 2009-12-31

The GroupReconciliation of the gross investment and the present value of the receivable of future leasing income:Gross investment 59 353 62 558Less not earned financial income -26 530 -28 464

Net investment of the leasing agreement 32 823 34 094Less not guaranteed residual value that goes to the lessee – –

Present value of the future leasing income 32 823 34 094

As per 31 December the breakdown of the remaining duration was as followsGross investmentWithin one year 2 872 3 205Between one and five years 10 154 10 487Later than five years 46 327 48 866

59 353 62 558

Less not earned financial income -26 530 -28 464

Net investment of financial agreements 32 823 34 094

Present value of future leasing income falls due for payment as belowWithin one year 1 007 1 271Between one and five years 3 135 3 288Later than five years 28 681 29 535

32 823 34 094

Note 34 Other long-term receivables2010-12-31 2009-12-31

The Group Accumulated acquisition valuesAt beginning of year 1 728 7 430Additional receivables – 35Settled receivables -62 -4 368Reclassifications 7 999 -1 358Disposed subsidiaries -289 –Exchange rate differences for the year – -11

9 376 1 728Accumulated write-downsAt beginning and end of the year -357 -357

Reported value at year-end 9 019 1 371

The Parent companyAccumulated acquisition valuesAt beginning of year 357 1 699Additional receivables – 35Settled receivables – -19Reclassifications 7 999 -1 358

8 356 357Accumulated write-downsAt beginning and end of the year -357 -357

Reported value at year-end 7 999 –

Note 35 Prepaid expenses and accrued income2010-12-31 2009-12-31

The Group Short-term comp. of prepaid borrowing expenses 1 174 695Prepaid expenses 3 850 5 399Accrued income 14 1 661Other items – 190

5 038 7 945

The Parent companyPrepaid expenses 818 783Other items 14 79

832 862

Note 36 Short-term investments

The Group and Parent company 2010-12-31 2009-12-31

List of securities

Market value or

equivalent Reported

value

Market value or

equivalent Reported

value

Listed participations 1 464 1 313 1 385 1 276

56

Note 37 Financial instruments and financial risk managementFinance policy Financial risks refer to changes in exchange rates and interest rates that affect the company’s cash flow, profit/loss and thereby the related shareholders’ equity. Financial risks also include credit risks and refinancing risks.

Exposure applying to the different operations is presented quarterly for the respective companies’ boards, which make current decisions regarding financial risk management based on the market situation and macroeconomic information.

Below is a summary of the Group’s loan portfolio divided according to currency and due dates. Due date of loan

Nominal amount in 1 year 1-5 >5original currency or less years years Total

Real estateSEK 785 033 671 703 93 620 19 710 785 033AviationUSD 6 411 20 192 26 444 – 46 636USD, credit line 3 591 24 429 – – 24 429OtherSEK, credit line 144 639 144 639 – – 144 639SEK, investment loan 250 000 – 250 000 – 250 000CHF 11 500 83 208 – – 83 208

944 171 370 064 19 710 1 333 945

Volito’s policy concerning borrowing is that the due dates for loans shall be spread over time. The policy relating to interest is that the fixed term periods for the portfolio shall be well balanced and assessed at all times against the company’s current view of the interest rate market.

Part of Volito’s borrowing is linked to the fulfilment of financial key ratios. These key ratios are followed up on a continuous basis and constitute part of the management’s daily framework for the financial planning of the business.

Currency risks The Volito Group is exposed to exchange rate changes mainly in the US dollar through its involvement in the Volito Aviation group. Income in the form of leasing fees is USD-based and is set against amortisation and interest payments on loans, which are similarly USD-based.

The results of VGS are reported as a share in joint ventures. Exchange rate differences related to translation of VGS are posted in the equity.

The Volito Group’s holding in Nordkap Bank AG is partly hedged against changes in the CHF exchange rate through certain borrowings in CHF. However, a certain amount of the holding is exposed to changes in the CHF exchange rate. Exchange rate diffe-rences related to translation of the foreign subsidiary are posted under equity.

The Board of Volito has decided to accept the exposure for USD and CHF according to the above, as this exposure in itself constitutes a risk diversification within the Volito Group. The extent of this exposure will be decided according to continuous review.

Interest risksThe Volito Group is exposed to changes mainly in short-term interest rates though its involvement in the groups Volito Fastigheter AB and SAA AB. Within the Parent company, Volito AB, there is also an exposure relating to short-term interest rates.

Taken together, the Volito Group’s total loans that are exposed to short-term interest rates is SEK 906 million (892).

During 2005, the Volito Group began to manage part of its interest rate risks using interest rate swaps. The hedging relating to 48.6% of the debt portfolio in the Volito Fastigheter AB group is managed with swaps, something that gives the company a higher degree of flexibility in terms of future debt management.

The nominal amounts on Volito Fastigheter’s outstanding interest rate swaps as of 31 December amounted to SEK 381.3 million (380.7). As of 31 December the fixed interest rates varied from 2.58% (2.58 %) to 4.03 % (4.89 %) and floating interest rates are STIBOR 3 months plus a margin for borrowing in SEK .

Financial exposure – outstanding derivatives 2010-12-31 2009-12-31Liabilities Loan amount Market value Loan amount Market value

The GroupInterest rate swaps 381 295 -10 650 380 675 -18 521

The market value has been calculated as the expenses/income that would have re-lated to the contract if it had been closed at accounting year-end. In this context the banks’ official rates have been used.

Below is a summary of the Group’s interest rate swaps by due dates.

Nominal 1 yearamount or less 1-5 years >5 years Total

SEK, interest rate swap 381 295 – 61 295 320 000 381 295

Refinancing risksThe Volito Group depends on a functioning credit market. The Group has a need to continuously refinance parts of its business, see note 39. The Group has a satisfactory equity ratio and loan capacity. It is therefore Volito’s assessment that there is at present no problem concerning the credit that is due for refinancing.

Note 38 EquityShare Restricted Non-restricted

capital reserves equity

The GroupBalance carried forward according to balance sheetof 31 December 2008 244 000 88 625 566 549

Translation difference for the year – -31 373Transfers between non-restrictedand restricted equity -47 989 47 989Result for the year 3 578Dividend -20 130Buy-back of option -26 860

Equity on 31 December 2009 244 000 40 636 539 753

Translation difference for the year – -20 867Transfers between non-restrictedand restricted equity 995 -995Result for the year 93 957Dividend -25 010

Equity on 31 December 2010 244 000 41 631 586 838

Share Restricted Non-restrictedcapital reserves equity

The Parent companyBalance carried forward according to balance sheetof 31 December 2008 244 000 21 005 309 794

Result for the year 51 207Dividend -20 130Buy-back of option -26 860Group contributions 24 610Tax effect on group contributions -6 472

Equity on 31 December 2009 244 000 21 005 332 149

Result for the year 55 986Dividend -25 010Group contributions 28 037Tax effect on group contributions -7 374

Equity on 31 December 2010 244 000 21 005 383 788

Retained EarningsContains the unrestricted equity from the previous year, less any transfers to restricted reserves and any dividend payments. Such amounts and net income for the current period, constitutes total unrestricted equity, i.e. the amount available for dividend payments.

57A

NN

UA

L R

EP

OR

T

Malmö, 28 February 2011

Karl-Axel Granlund Bo Olsdal Lennart Blecher Johan LundsgårdChairman CEO

Our auditors’ report was submitted 3 March 2011KPMG AB

Eva Melzig Henriksson David OlowAuthorized Public Accountant Authorized Public Accountant

The Group’s income statement and balance sheet, and the Parent company’s income statement and balance sheet, will be confirmed at the Annual General Meeting on 15 March 2011.

Number of issued sharesFully paid Not fully paid Nominal amount

Class B shares 2 440 000 – 100

Specification of accumulated exchange rate difference in equity:2010-12-31 2009-12-31

Acc. exchange rate difference at beginning of year 54 650 86 023Exch. rate diff for the year in foreign subsidiaries -15 913 -24 543In foreign associated companies and joint ventures -4 954 -6 830

Accumulated exchange rate difference at year-end 33 783 54 650

The Board of Directors and CEO propose that of disposable standing profit, SEK 25 010 000 is distributed to shareholders.

Note 39 Other debts to credit institutes, long-term2010-12-31 2009-12-31

The Group Due date, 1-5 years from accounting year-end 370 064 608 932Due date, later than five years from acc year-end 19 710 179 909

389 774 788 841

The Parent companyDue date, 1-5 years from accounting year-end 250 000 250 000

250 000 250 000

The Group intends to refinance those credits that fall due in 2010. Volito’s assessment is that amortisation in 2011 will amount to SEK 30.4 million for the Group and SEK 0 million for the Parent company, which in accordance with RR 22 is reported as short-term.

Note 40 Bank overdraft facilities2010-12-31 2009-12-31

The GroupGranted credit limit 296 630 289 125Unutilised part -127 562 -157 678

Utilised credit amount 169 068 131 447

The Parent companyGranted credit limit 183 000 183 000Unutilised part -41 383 -58 533

Utilised credit amount 141 617 124 467

Note 41 Other debts, long-term and short-term2010-12-31 2009-12-31

The GroupDebts 97 677 80 112

In a number of leasing contracts there is an agreement that the lessees make regular payments to Volito that are allocated to a maintenance reserve that is utilised for future maintenance on aircraft. The cash-in and cash-out in the maintenance reserve is controlled by the lessee’s utilisation of the aircraft and by foreseen and unforeseen maintenance costs.

The maintenance reserve as of 31 December 2010 amounted to SEK 65.0 million (68.4).

Note 42 Accrued expenses and prepaid income2010-12-31 2009-12-31

The Group Personnel-related items 15 639 16 516Accrued interest expenses 4 525 4 932Prepaid rental income 15 807 15 700Prepaid leasing income 2 772 3 725Other prepaid income – 1 735Other accrued expenses 11 259 10 582

50 002 53 190

The Parent companyPersonnel-related items 1 630 1 606Accrued interest expenses 727 479Other items 313 1 093

2 670 3 178

58

Audit Report - translation

To the annual meeting of the shareholders of Volito ABCorporate identity number 556457-4639

We have audited the annual accounts, the accounting records and the administration of the board of directors and the managing director of Volito AB for the year 2010. The annual accounts are presented in the printed version of this document on pages 34-57. These accounts and the administration of the company and the application of the Annual Accounts Act when preparing the annual accounts are the responsibility of the board of directors and the managing director. Our responsibility is to express an opinion on the annual accounts and the administration based on our audit.

We conducted our audit in accordance with generally accepted auditing standards in Sweden. Those standards require that we plan and perform the audit to obtain high but not absolute assurance that the annual accounts are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the accounts. An audit also includes assessing the accounting principles used and their appli-cation by the board of directors and the managing director and significant estimates made by the board of directors and the managing director when preparing the annual accounts as well as evaluating the overall presentation of information in the annual accounts. As a basis for our opinion concerning discharge from liability, we examined signi ficant decisions, actions taken and circumstances of the company in order to be able to determine the liabili-ty, if any, to the company of any board member or the managing director. We also examined whether any board member or the managing director has, in any other way, acted in cont-ravention of the Companies Act, the Annual Accounts Act or the Articles of Association. We believe that our audit provides a reasonable basis for our opinion set out below.

The annual accounts have been prepared in accordance with the Annual Accounts Act and give a true and fair view of the company's financial position and results of operations in accordance with generally accepted accounting principles in Sweden. The statutory administration report is consistent with the other parts of the annual accounts.

We recommend to the annual meeting of shareholders that the income statement and balance sheet be adopted, that the profit be dealt with in accordance with the proposal in the administration report and that the members of the board of directors and the managing director be discharged from liability for the financial year.

Malmö 3 March 2011

KPMG AB

Eva Melzig Henriksson David Olow Authorized Public Accountant Authorized Public Accountant

this english version is a translation of the Swedish original. in case of any dispute as to the interpretation of this document, the Swedish version shall prevail.

he cover this year is painted by John Stockwell,

born 1958 in Boston. John has been living in Sweden

for ten years. His dramatic paintings with nature

as a base are witnesses of a huge love and passion

for the southern Swedish landscape.

over the years John has had several exhibitions

in the uSA, europe and Sweden. His work is

represented in numerous major collections,

i.e. Fidelity trust, iBM, Merril lynch and

Harvard Business School.

John Stockwell

– Apple orchard in Vitaby.

pastel on paper 2010

TAddressesVolito ABSödra Förstadsgatan 4, Se-211 43 Malmötfn +46 40 660 30 00 Fax +46 40 660 30 20www.volito.se

Volito Aviation ABSödra Förstadsgatan 4, Se-211 43 Malmötfn +46 40 660 30 00 Fax +46 40 30 23 50www.volito.aero

Volito Fastigheter ABSödra Förstadsgatan 4, Se-211 43 Malmötfn +46 40 664 47 00 Fax +46 40 664 47 19www.volitofastigheter.se

Volito industri ABSödra Förstadsgatan 4, Se-211 43 Malmötfn +46 40 660 30 00 Fax +46 40 660 30 20www.volito.se

VOLITO_ÅR_Omslag_2010_cs5.indd 2 2011-02-28 11.51

Vo

lito

AB

| An

nu

Al

Re

po

Rt

2010

Volito AB, Södra Förstadsgatan 4, Se-211 43 Malmö tel +46 40 660 30 00 fax +46 40 660 30 20 e-mail info@volito.se internet www.volito.se corporate identity number 556457-4639

Volito AB is an investment company operating within Aviation, Real Estate, Industry and Structured Finance. The company creates value through long-term, active ownership based on genuine expertise within its lines of business.

Value growth is generated both through current earnings and the increase in value of the company’s investments.

Volito AB | GRoup pReSentAtion AnnuAl RepoRt 2010

VOLITO_ÅR_Omslag_2010_cs5.indd 1 2011-02-28 11.51