Czech Market Letter

In its efforts to develop the relationships with its clients and, in general, to keep the public informed, UniCredit Bank Czech Republic and Slovakia, a.s. creates and publishes analytical output, in particular information regarding financial markets, currencies and interest rates, as well as equity and investment analyses.

This analytical output serves for informational purposes only and does not constitute an offer or invitation to purchase or sell any investment instrument. It is intended solely for personal, independent investment decision-making and does not substitute for investment advisory. Unless stated otherwise, such analytical output presents opinions valid as of the date of its publication and is subject to change without prior notification.

Securities, financial instruments and strategies mentioned in any analytical output may not be suitable for all investors. UniCredit Bank Czech Republic and Slovakia, a.s. recommends that all investors consult with a specialised advisor regarding their investment plans and decisions prior to the implementation.

UniCredit Bank Czech Republic and Slovakia, a.s. is a credit institution and as such is subject to supervision by the Czech National Bank. UniCredit Bank Czech Republic and Slovakia, a.s. is a member of the Prague Stock Exchange, Burza cenných papírů Praha, a.s.

Notification of risks

Rates, prices, returns, gains, performance and other parameters attained by individual financial instruments in the past may not under any circumstance serve as an indicator or guarantee of future rates, prices, returns, gains, performance or other parameters of those or similar instruments. Investments are inherently connected with the risk of value fluctuation, and a return on the originally invested funds is not guaranteed. Financial instruments denominated in foreign currencies are also subject to fluctuations caused by changes in exchange rates, which can have both positive and negative influences, particularly on the rates, prices, returns and gains thereof. Contravening the assumptions upon which a recommendation is based may cause the respective recommendation to become invalid.

UniCredit Bank Czech Republic and Slovakia, a.s., bears no responsibility for any damages ensuing from the use of information in any analytical output. UniCredit Bank Czech Republic and Slovakia, a.s. bears no responsibility for any losses resulting from investments made on the basis of any recommendation, forecast or other information contained in any analytical output.

Sources of information

All information and opinions used in creating any analytical output or contained in the actual texts thereof originate from or are based upon various sources that UniCredit Bank Czech Republic and Slovakia, a.s. believes to be reliable. Although UniCredit Bank Czech Republic and Slovakia, a.s. devotes great care to the content and verification of such information and opinions, it cannot guarantee their accuracy, preciseness and completeness.

UniCredit Bank Czech Republic and Slovakia, a.s. does not inform issuers of financial instruments in advance of the analytical output that concerns the financial instruments issued by them.

Significance of recommendation

If any analytical output contains a recommendation to purchase or sell a specific financial instrument, such recommendation should be regarded as the opinion of UniCredit Bank Czech Republic and Slovakia, a.s. that this specific financial instrument will over time gain in value or, on the contrary, lose value on the relevant market. All recommendations are short-term, and UniCredit Bank Czech Republic and Slovakia, a.s. does not expect that they will be valid for longer than one week. Market volatility and any contravention of the assumptions upon which a recommendation is based may cause the respective recommendation to become invalid.

Methodology

To evaluate financial instruments to which a recommendation applies, UniCredit Bank Czech Republic and Slovakia, a.s. uses exclusively technical analysis based on systematic examination, analysis and assessment of past and current data.

Conflict of interests

UniCredit Bank Czech Republic and Slovakia, a.s. has adopted appropriate organisational and administrative measures to avoid conflict of interest in relation to the methods applicable for analytical outputs. Individual organisational units of UniCredit Bank Czech Republic and Slovakia, a.s. are mutually separated from one another in accordance with the requirements imposed on the organisational structure of credit institutions by applicable legal regulations. All organisational units of UniCredit Bank Czech Republic and Slovakia, a.s. conduct their activities pursuant to the procedures established by internal regulations of UniCredit Bank Czech Republic and Slovakia, a.s. Measures preventing conflicts of interest are contained especially in the internal regulations “Managing Conflicts of Interest” and “Conflict of Interest Policy”.

Remuneration of persons involved in creating analytical outputs is not derived from the trading activity of UniCredit Bank Czech Republic and Slovakia, a.s. or its associates. Their remuneration is based on various criteria, first and foremost on the quality of the activity performed and on the overall results of UniCredit Bank Czech Republic and Slovakia, a.s., including profits derived from revenues generated by investment banking. Nevertheless, these people are not financially or otherwise motivated, directly or indirectly, to create a specific analytical output.