3 Significant transactions

In addition to the changes in the consolidated group cited in Note 2, the following significant transactions affected the Group’s net assets, financial position and results of operations in financial year 2009:

As part of the sale of Deutsche Postbank shares, see Note 2, an additional interest of 27.4% will be transferred to Deutsche Bank AG after three years when a mandatory exchangeable bond on Postbank shares becomes due (second tranche). The mandatory exchangeable bond was issued by Deutsche Post AG in February 2009 with a maturity of 36 months and fully subscribed by Deutsche Bank AG. The bond will be exercised through transfer of 60 million Deutsche Postbank AG shares. The mandatory exchangeable bond consists of an advance payment and a forward transaction and must therefore be recognised as a prepaid forward transaction. As at 31 December 2009, a non-current liability of around €2.6 billion plus accrued interest expense of €103 million were recognised in the balance sheet. The embedded forward transaction is definitely excluded from the scope of IAS 39 and must be recognised as an uncompleted transaction as at the reporting date. Recognition of the forward transaction changes as of 1 January 2010; see Note 50.

In a third tranche, Deutsche Post AG and Deutsche Bank AG have agreed on options for the sale/purchase of a further 12.1% of the Postbank shares. These derivatives cannot be exercised until February 2012 at the earliest. The options are reported under noncurrent financial assets (€669 million) and non-current financial liabilities (€22 million). Net finance costs/net financial income contains gains of €647 million from changes in the fair value of the options. The carrying amount of the options fell by €297 million due to the increase in the price of Postbank shares between initial recognition of the options and the reporting date. Deutsche Bank AG provided collateral in the amount of around €1.2 billion for the purchase price of the remaining 12.1% of Postbank shares, which is recognised in non-current financial liabilities in addition to the interest expense. Deutsche Post AG has received a total of around €5 billion from the sale of its interest in Postbank.

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