Abridged Audited Results for the Year Ended 31 December 2015 - DBXEU The db X-trackers Collective Investment Scheme db x-trackers DJ Eurostoxx 50 Trust JSE code: DBXEU ISIN: ZAE000115937 A portfolio in the db x-trackers Collective Investment Scheme (db x- trackers), registered as such in terms of the Collective Investment Schemes Control Act, 45 of 2002 (CISCA) ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2015 STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 December 2015 2015 2014 R R Revenue 88 858 263 64 622 792 Investment income 67 408 757 52 604 615 Net fair value gain on investments at fair value through profit or loss 21 449 506 12 018 177 Expenses (15 122 550) (11 492 503) Management and administrative expenses (15 102 050) (11 492 005) Finance costs (20 500) (338) Foreign exchange loss on dividends - (160) Operating profit before distribution 73 735 713 53 130 289 Comprising: Income available for distribution before tax 52 286 207 41 112 112 Capital gain retained 21 449 506 12 018 177 Distributions (33 685 012) (29 184 395) Increase in net assets attributable to holders of redeemable securities before tax 40 050 701 23 945 894 Withholding tax (16 777 275) (12 641 719) Increase in net assets attributable to 23 273 426 11 304 175 holders of redeemable securities STATEMENT OF FINANCIAL POSITION at 31 December 2015 2015 2014 R R Assets Listed investments held at fair value through profit or loss 2 449 970 705 1 505 894 503 Trade and other receivables 1 143 035 - Cash and cash equivalents 13 789 408 12 796 192 Total assets 2 464 903 148 1 518 690 695 Liabilities Net assets attributable to holders of redeemable securities 2 451 620 038 1 508 778 685 Trade and other payables 13 283 110 9 912 010 Total liabilities 2 464 903 148 1 518 690 695 STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SECURITIES for the year ended 31 December 2015 Total R Balance at 1 January 2014 1 266 716 470 Increase in net assets attributable to holders 11 304 175 of redeemable securities Creation of redeemable securities 284 799 018 Foreign currency translation adjustments (54 040 978) attributable to redeemable securities Balance at 31 December 2014 1 508 778 685 Increase in net assets attributable to holders 23 273 426 of redeemable securities Creation of redeemable securities 492 014 894 Foreign currency translation adjustments 427 553 033 attributable to redeemable securities Balance at 31 December 2015 2 451 620 038 STATEMENT OF CASH FLOWS for the year ended 31 December 2015 2015 2014 R R Cash utilised by operations (13 745 022) (9 989 202) Dividends received 63 403 898 50 387 456 Management fees paid (11 066 554) (9 551 034) Interest paid (20 500) (338) Net cash inflow from operating activities 38 571 822 30 846 882 Cash outflow from investing activities (495 073 662) (281 861 272) Purchase of listed investments (495 073 662) (281 861 272) Cash inflow from financing activities 457 495 056 254 644 990 Proceeds on creation of redeemable securities 492 014 893 284 799 018 Distributions paid to investors (34 519 837) (30 154 028) Net increase in cash and cash equivalents 993 216 3 630 600 Cash and cash equivalents at the beginning of year 12 796 192 9 165 592 Cash and cash equivalents at the end of 13 789 408 12 796 192 year 2015 2014 Number Number db x-trackers DJ EuroStoxx 50 redeemable securities in issue 44 000 000 34 000 000 In terms of the Trust Deed and CISCA, the Trust is required to pay the net asset value attributable to holders of redeemable securities on redemption of the securities. Vested income beneficiaries include all holders of db x-trackers DJ Eurostoxx 50 redeemable securities. Creations and redemptions There were 10 000 000 (2014 – 6 000 000) creations during the year amounting to a rand value of R492 014 894 (2014 – R284 799 018). There were no redemptions during the current or prior year. Distributions The Trust effects semi–annual distributions. All distributions are made out of the income of the Trust. The rebates represent an investor’s partial reduction of the 85.5 basis points management fee charged (2014: 85.5 basis points management fee charged). The rebate is calculated using a sliding scale depending on the size of the investor’s investment. During the year under review the following distributions were effected per db x-trackers DJ Eurostoxx 50 Redeemable Security: 2015 2014 R R Declared distributions (32 256 272) (28 129 954) 0.71500 Rand per security Declared June 2015 and paid July 2015 (30 029 796) 0.74120 Rand per security Declared June 2014 and paid July 2014 (25 200 918) 0.05060 Rand per security Declared December 2015 and paid January 2016 (2 226 476) 0.08615 Rand per security Declared December 2014 and paid January 2015 (2 929 036) Management fees refunded during the year as a rebate distribution (1 428 740) (1 054 441) Total distribution expense for the year (33 685 012) (29 184 395) Total Expense Ratio (TER) The TER represents the total expense to the Trust. The only expense of the Trust is the management fee payable to the Manager which is calculated at 0.855% of assets under management on a daily basis (2014: 0.855% of the assets under management). The Trust had a TER of 85.5 basis points (2014: 85.5 basis). Increased consumer demand for greater transparency in financial services and the recognition thereof by the collective investment industry requires Collective Investment Scheme (CIS) managers to calculate and publish a total expense ratio for each Portfolio under their management. This is a requirement in terms of the Association for Savings and Investments South Africa (ASISA) standard on the calculation and publication of total expense ratios. Statement of compliance The information in the summarised report has been extracted from the audited annual financial statements which have been prepared in accordance with the requirements of the JSE Listing Requirements for abridged reports, and the requirements of CISCA in order to meet the requirements of the Trust Deed approved by the Financial Services Board. The listing requirements require abridged reports to be prepared in accordance with the framework concepts and the measurement and recognition of International Financial Reporting Standards (IFRS) and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and the Financial Reporting Pronouncements as issued by Financial Reporting Standards Council and to also, as a minimum contain the information required by IAS 34 Interim Financial Reporting. This announcement does not include the information required pursuant to paragraph 16A(j) of IAS 34. The full report is available on the issuer’s website, at the issuer’s registered offices and upon request. These financial statements were authorised for issue by the board of directors of the Manager on 23 March 2016. Accounting policies The accounting policies applied in the preparation of the financial statements from which the summary financial statements were derived are in terms of International Financial Reporting Standards and are consistent with those accounting policies applied in the preparation of the previous annual financial statements. New standards and interpretations not yet adopted The following standards, amendments to standards and interpretations effective for the first time in future accounting periods and which are relevant to the Trust have not been adopted for the reporting periods beginning on or after 1 January 2015: IAS 1: Disclosure Initiative - The amendments provide additional guidance on the application of materiality and aggregation when preparing financial statements. IAS 1 is effective for reporting periods beginning on or after 1 January 2016 and the impact of this standard will be assessed once the standard becomes effective. The Trust will only apply the standard once the standard becomes effective. IFRS 9: Financial Instruments - IFRS 9 deals with classification and measurement of financial assets and financial liabilities. IFRS 9 is effective for reporting periods beginning on or after 1 January 2018 and the impact of this standard will be assessed once the standard becomes effective. The Trust will only apply the standard once the standard becomes effective. IFRS 15: Revenue from Contracts with Customers - IFRS 15 contains a single model that applies to contracts with customers and two approaches to recognising revenue: at a point in time or over time. IFRS 15 is effective for reporting periods beginning on or after 1 January 2018 and the impact of this standard will be assessed once the standard becomes effective. The Trust will only apply the standard once the standard becomes effective. Investment income Investment income comprises: - interest income earned on cash and cash equivalents; - cash equalisation component on creations (at the time of creation it represents the income portion attributable to the net asset value at the time that is payable by the creating party) - dividends from listed equities at fair value through profit or loss. Interest income Interest income is recognised in profit or loss, using the effective interest method taking into account the expected timing and amount of cash flows. Dividend income Dividend income is recognised when the right to receive the payment is established. This is usually the ex-dividend date for quoted equities. Audit report This summarised report is itself not reviewed or audited but is extracted from the underlying audited information. The audited annual financial statements for the year ended 31 December 2015 from which the summarised report has been extracted were audited by KPMG Inc, who expressed an unmodified opinion thereon. A copy of the auditor’s report on the audited annual financial statements is available for inspection at the company’s registered office together with the annual financial statements identified in the respective auditor’s reports. A full copy of these financial statements is available on the db x- trackers website www.dbxtrackers.co.za. Directors’ responsibility The directors take full responsibility for the preparation of the abridged report and confirm that the financial information has been correctly extracted from the underlying annual financial statements. Sponsor Vunani Corporate Finance Trustee Standard Bank of SA Limited Manager db x-trackers Proprietary Limited 31 March 2016 Date: 31/03/2016 12:00:00 Produced by the JSE SENS Department. 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