Annual Financial Statements 2011 of Bank Austria

Consolidated Financial Statements in accordance with IFRSs
E – Risk report (CoNTINuED)
Information and communication
Management regularly updates rules and regulations for financial reporting and communicates them to all employees concerned.
Moreover, regular discussions on financial reporting and on the rules and regulations applicable in this context take place in various bodies and are
repeatedly communicated to UniCredit Bank Austria AG. Employees in Financial Accounting receive regular training in new methods of international
financial reporting in order to identify risks of unintended misreporting at an early stage.
To perform monitoring and control functions with a view to proper financial accounting and reporting, extensive financial information is made available
at key levels of the bank. Relevant information is not only provided to the Supervisory Board and the Management Board, middle management levels
also receive detailed reports.
Monitoring
As part of the implementation of the internal control system pursuant to the “262 Savings Law”, instruments were introduced to monitor the effectiveness
of controls. In connection with the compulsory half-yearly certification process for the preparation of the management report, the persons having
process responsibility are required to carry out effectiveness tests to check the effectiveness of controls. It must be ascertained whether the controls
work according to their design and whether the persons who perform controls have the competence/authority and qualifications required to perform
the controls effectively.
All persons having process responsibility confirm by means of certification that their processes are adequately documented, risks have been identified
and controls have been evaluated with a view to deriving measures to minimise risk.
The results of these monitoring activities are contained in a management report which is based on the certifications provided to the respective chief
financial officer by all persons having process responsibility and issued on a half-yearly basis. The Chief Financial Officer of UniCredit Bank Austria AG
receives the certifications by the chief financial officers of the subsidiaries covered by the process in accordance with the group of consolidated
companies, and provides the Holding Company and the public with confirmation of the reliability and effectiveness of the internal control system in the
context of the financial statements for the first six months and the annual financial statements.
E.12 – Information on the squeeze-out pursuant to the Austrian Federal Act
on the Squeeze-out of Minority Shareholders (Gesellschafterausschlussgesetz)
of the holders of bearer shares in uniCredit Bank Austria AG
The company’s Annual General Meeting on 3 May 2007 adopted a resolution concerning the planned squeeze-out. The legal actions for rescission and
declaration of nullity brought against various resolutions adopted at the Annual General Meeting on 3 May 2007 were terminated in spring 2008. The
squeeze-out was entered in the Register of Firms on 21 May 2008. After that date, former minority shareholders initiated proceedings for a review of
the cash compensation offered by UniCredit. An expert has been appointed in these proceedings to review the amount of the cash compensation paid;
the expert report is now available and essentially confirms the adequacy of the cash compensation paid in connection with the squeeze-out. A decision
by the court of first instance in this case is not yet available.
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