1Personalvorsorge Swissport | Prévoyance professionnelle Swissport

This document is a translation of the original German text. In all matters of interpretation, the original German shall prevail.

2011 Annual Report

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Contents

Contents, 2011 Annual Report PageForeword 4

Annual financial statements 16

Balance sheet 16Operating income statement 18

Notes 201 Principles and organisation 201.1 Legal form and objective 201.2 Registration under the BVG and with the LOB Guarantee Fund. 201.3 Deed of trust and regulations 201.4 Governing body and signatory authority 201.5 Accredited pension actuary, statutory auditors, investment advisor and supervisory authorities 211.6 Affiliatedemployers 21

2 Working insurees and pension recipients 222.1 Working insurees 222.2 Pension recipients 24

3 Fulfilment of objectives 253.1 Detailsonthebenefitregulationsandpensionplans 253.2 Funding and funding method 26

4 Accounting and valuation principles and consistency 274.1 ConfirmationofaccountinginaccordancewithSwissGAAPARR26 274.2 Accountingandvaluationprinciples 27

5 Actuarial risks, risk coverage and funding ratio 285.1 Form of risk coverage, reinsurance 285.2 Performance of savings capital and interest earned thereon 285.3 Total old-age savings under the BVG 295.4 Performance of actuarial reserves for pension recipients 295.5 Result of the latest actuarial appraisal 315.6 Actuarial principles 315.7 FundingratioasdefinedinArt.44BVV2 32

6 Note on investments and on the net return on investments 326.1 Organisation of investment activities and investment regulations 326.2 Use of supplementary investment vehicles (Art. 50 (4) BVV2) 346.3 Targetsizeandcalculationofthefluctuationreserve 346.4 Investments by asset category 356.5 Openderivativefinancialinstruments 376.6 Explanationofnetincomefrominvestmentactivities 376.7 Marketvaluesandcontractualpartnersundersecuritieslendingagreements 39

7 Notes on further balance sheet and operating income statement items 407.1 Balancesheet 407.2 Operatingincomestatement 41

8 Stipulations of the supervisory authorities 45

9 Further information concerning the financial situation 459.1 Retrocessions 459.2 Pledged assets 459.3 AuditbytheSwissFederalTaxAdministration–Demandforrepaymentof withholdingtaxonSSgA‘sMSCISwitzerlandEquitiesCTF 459.4 TerminationofaffiliationagreementwithUnitpoolAG,Kloten 4610 Events after the balance sheet date 46

Report of the statutory auditors 47

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FOReWORD

ForewordbytheChairmanoftheBoardofTrusteesontheeighthbusinessyearoftheSwissportCompanyPensionScheme(PersonalvorsorgeSwissport/PVS).

From the banking crisis to the sovereign debt crisisLast year was a major challenge for us all. We were able to, or rather were forced to, adjust the conversion factor in response to longstanding developments in the capital market and to longevity trends of the population. We also had to adjust to the new provisions of structural reform.

On11March2011,Japanwashitbythreedisasters:anearthquakefollowedbyatsunamiandanuclearaccidentwithacoremeltdown.Some19000peoplelosttheirlivesandmorethan125000homesweredestroyed.

2011wasadifficultyearforinvestors,onethatbroughtmanysurprises:theEurocrisis,central-bankinter-ventions,downgradingoftheEurozonecountries,Greecehittingrockbottom.Manyothercountriesarealsoexperiencingfinancial,ormoreaccurately,debtproblems.Theprincipleofbank-clientsecrecyhasbeenfurthereroded,theSwissNationalBankhasbecomeatopicofconversationandhashadtointerveneinthemarketon a large scale.

Equitymarketsplummeted.Afterpeakingat6739pointson21February2011,theSMIfelltoitslowestpointof 4 695 points on 9 August 2011. That said, by the end of the year it had climbed back up to 5 936 points. Bywayofreminder,on31December2010,theSMIclosedat6436points,afterhavingended2009at6606points.TheSMIreachedtheall-timehighof9531pointsintheearlysummerof2007.

Despiterallyingbrieflyto2.14percenton12April2011,thereturnonten-yeargovernmentbondsfellfrom1.65to0.74percentduringthecourseoftheyear.

Despitetheadversegeneraleconomicenvironment,thePVSregisteredapositiveperformanceof0.9%.Thisperformanceis,however,unsatisfactorywhenseeninthelightofthe4.0%targetrequired.Onceagain,thethirdcontributor–namelyinvestmentincome–letusdownintheyearunderreview.

Turningtoourfundingratio:afterapplicationofBVGinteresttoallretirementsavings,ourfundingratioat31December2011stoodat102.6%(previousyear:105.1%).Thisiswellshortofourtargetfundingratioof119.5%(basedonatwo-yearfluctuationreserve).

Board of TrusteesEva-MariaKerner,theemployer‘srepresentativeontheBoardofTrusteesandtheInvestmentsCommitteeandCorporateControlleratSwissportInternational,movedtoSwissportGenevaon1February2012,wheresheisnowDirectorofFinances(SeniorBusiness&FinanceController).Wearedelightedthatshehasremai-nedloyaltothePVSdespitethisrelocation.

Management of the PVSWecancontinuetocountontheenergeticleadershipandcommitmentofMarkusStaudenmaier,ManagingDirectorsinceJanuary2009,MarkusBleisch,customeradvisorsinceNovember2009,ClaudiaSommer,custo-meradvisorsinceMay2009,andReymondFrüh,HeadofAccountingsinceMay2010,allofwhomworkforPensionFundServicesAG(PFSAG).

Wehaveathree-yearcontractwithPFSAGrunningfrom2010to2012.

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Contracts of affiliationThefounder-employerofthePVSisSwissportInternationalAG,OpfikonZH,(83workinginsurees),whichfoundedtheschemeinitsDeedofTrustof15September2003.ThePVSalsoheldaffiliationagreementswiththefollowingninecompaniesandoperationsattheendof2011:• SwissportGroupServicesGmbH,Baar,CantonZug(29workingbeneficiaries)• SwissportInternationalAG,Zurichoperations(1679workingbeneficiaries)• SwissportBaggageSortingAG,Kloten,CantonZurich(176workingbeneficiaries)• CareportAG,Opfikon,CantonZurich(91workingbeneficiaries)• SwissportInternationalAG,Baseloperations(392workingbeneficiaries)• SwissportInternationalAG,Genevaoperations(938workingbeneficiaries)• GVAssistanceS.A,LeGrand-Saconnex,CantonGeneva(51workingbeneficiaries)• PrivatportS.A.,Meyrin,CantonGeneva(9workingbeneficiaries)• UnitpoolAG,Kloten,CantonZurich(0workingbeneficiaries)(=atotalof3448workingbeneficiariesasat31December2011)

PAI Europe V (www.paipartners.com) purchased Swissport Group (www.swissport.com) from Ferrovial(www.ferrovial.com) in February 2011.

PAIPartners,oneoftheoldestandmostexperiencedprivateequitycompaniesinEurope,originatedfromParibas Affaires Industrielles, the latter having handled the key investments of the pan-european merchant bankParibas,whichmergedwithBNPin1999.Thecompanyengagesincontrollinginvestmentsinlever-agedbuyouts(LBOs),acquiringmajoritystakesintransactionsworthbetweenEUR500millionandseveralbillion euros. PAI is a long-term investor, its holdings usually spanning between four and six years.

SincebeingacquiredbyPAIPartners,Swissporthasdevelopedanewbusinessplanwhichplacesgreateremphasis on growing sales and developing business. The executive Board has succeeded in concluding contractsinbothnewandexistinglocationsandalsoboastsastrongacquisitionspipeline.Operationalef-ficiencyisnowthefocusofattentionthroughoutthecompany,andnewprojectshavebeenlaunchedinanefforttooptimisepurchasingandpricing.Thecompanystandstoprofitbothfromthegrowthinairtrafficandthe increase in outsourcing on the part of airline operators.

SwissportInternationalAGprovidesground-handlingservicesforsome100millionpassengersandhandles3.2 million tonnes of freight each year (the latter being transhipped in 98 warehouses with a total area of more than 360 000m²) on behalf of 650 aviation industry customers. A workforce of some 35 000 employees opera-tingat177locationsin36countriesonfivecontinentshelpedSwissporttogenerateconsolidatedrevenueofCHF1.7billionin2011.

Termination of the affiliation agreement with Unitpool AG, Kloten, with effect from 31 December 2011Atitsmeetingof23November2010theBoardofTrusteesdecidedtoterminatethePVS‘saffiliationagree-mentwithUnitpoolAG,Kloten,witheffectfrom31December2011asthecommercialaffiliationstipulatedbyArt.3.3ofthePVSDeedofTrustnolongerapplies.

Thecriteria for thepartial liquidationhavethusbeenfulfilled.TheBoardofTrusteesaskedtheexpert toperformthenecessarycalculationsandtopresentthesetotheBoardon10May2012inordertopermitacorresponding resolution to be passed.

On31December2011,18beneficiariestransferredcollectivelytothenewpensionfundofUnitpoolAG.Theirentirevestedbenefitsweretransferredon3January2012.

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Thebeneficiariesinvolvedwillbeinformedofthedetailsaftertheresolutionhasbeenpassed,afterwhichthey have 30 days to raise any objections, stating the reasons.

2011, the eighth business yearThePVSbeganitseighthyearofbusinesson1January2011with3346workingbeneficiaries,actuarialcapitalforworkingbeneficiariesofCHF458millionandafundingratioof105.1%.Itclosedtheyearon31December2011with3448workingbeneficiaries,actuarialcapitalforworkingbeneficiariesofCHF453million,afundingratioof102.6%,annualinterestonallold-agesavingsof2.00%(unchangedfrom2010)andaperformancefortheyearof0.9%.

ThePVSwebsiteatwww.pv-swissport.chprovidesallrecentnewsfromtheBoardofTrustees,thescheme’sregulations, forms, presentations, annual reports and an overview of the PVS organisation in German,FrenchandEnglish.WeadviseyoutovisitourwebsiteregularlytokeepfullyabreastofallPVSdevelop-ments.

Informationeventsonthe2010AnnualReportwerealsoheldatallthreeoperatingunits–Basel,GenevaandZurich.

Withtheexceptionofthedepartureofthe18UnitpoolAGemployeeson31December2011,thePVShadno further collective admissions or departures in the year under review.

Actuarial appraisalThe following is a summary of the actuarial appraisal as at 31 December 2011 presented by the accredited pensionactuary:

ThePVSisasemi-autonomousoccupationalpensionscheme.Ithasreinsuredtherisksofdeathanddisabilitysince1January2011.Theriskinsurancepremiumof2.5%didnotneedtobeadjustedfor2011.

The number of working insurees has increased, as has the number of pension recipients. The calculations were based on the new BVG 2010 actuarial data and on the standard cross-sectional mortality table projected to 2012. Our structure of insurees shows a healthy picture. The number of people who are nearing retirement age (older than 58) is fairly high. The average age of our insurees is 40.9 years, which is relatively low compared with that of an average pension scheme (44 years).

Ourpensionrecipientsarerelativelyyoungbecausetheschemewasonlyfoundedon1January2004.PersonswhoretiredearlierremainedintheGeneralPensionSchemeoftheSAirGroup.

The maximum technical provisions have been accrued. These are primarily provisions for pending claims, longevityandpensionlosses.ThePVSriskprocesswasslightlypositivein2011.

ThePVScurrentlyhas67insurees(previousyear:73)whohavebeenunabletoworkformorethan60days.ItisnotknownhowmanyoftheseinsureeswilldrawapensionfromthePVSinfuture.

2011 annual resultThevestedbenefitspaidinbyjoininginsureesamountedto(rounded)CHF10.7millionin2011(previousyear:CHF10.6million.).AtCHF17million,vestedterminationbenefitspaidoutonleavingwerebelowthepreviousyear‘slevelofCHF20.5million.

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ThePVSpaidCHF7millioninold-agepensionsin2011,comparedwithCHF5.8millionin2010.Lump-sumpaymentsonretirementrosetoCHF9.4millionin2011(previousyear:CHF8.7million).Theincreaseinretirementbenefitsisaresultoftheincreasednumberofpensionrecipients.

InterestpaymentsstoodatCHF8.8millionin2011(previousyear:CHF8.7million).

The number of insurees rose by 102. The number of old-age pension recipients continued to rise and had reached 268 by the end of the year, while the number of disability pension recipients rose to 31.

Thesavingscontributionsreceivedexceededtheregulatorybenefitspaidout,buttheamountspaidinbythosejoiningcametolessthanthevestedterminationbenefitspaidouttothoseleaving.Nevertheless,thePVSreportedanetcapitalinflow.Pensionliabilitiesalsoincreasedslightly.

TheyearunderreviewsawthePVSsignnewassetmanagementagreementswithCreditSuisseandZürcherKantonalbank,whichwill reduceassetmanagement costs in thecomingyears.This resulted in someswitchingofinvestmentsinbondsandequities.Assetmanagementcostswerealreadylowerin2011thaninthepreviousyear,InaccordancewiththecontractwithPFSAG,thePVS’sadministrationexpensesarebasedonaslidingscale.TheyamounttoCHF286percapitaandincludethecostsfortheaccreditedpensionactu-ary, the auditors, the translations and the printed matter. InvestmentsIn2011,theBoardofTrusteessignednewassetmanagementagreementswithCreditSuisseandZürcherKantonalbankwhichareaimedtoreduceassetmanagementcostsinthecomingyearsthankstovolume-basedmanagementfees.TheseagreementswerepossiblethankstothePFSindexpool,ajointinvestmentschemeinvolvingotherpensionfundsoftheformerSwissair.

StrategyOurStrategicAssetAllocation(SAA),validasof1December2011, involvedsomerestructuringwithin the«bonds»and«equities»assetcategories

EquitiesThePVS targetsa long-termreturnon investmentof5% tomeet the implicit requirements forcompanypensionschemes.ThismeansholdingasmanyinvestmentsinequitiesandsimilarinstrumentsasthePVS‘srisk capacity will permit, but not more, otherwise the losses from a future market downturn could potentially be so severe as to make it impossible to continue the strategy. As so often in life, it is a matter of balancing risks and opportunities and keeping a close eye on that balance at all times.

Sustainable investmentsAninvestmentofCHF30millionintheequity-basedsustainableinvestmentsSarasinOekoSarEquity–GlobalF,HendersonGlobalCareGrowthFundandSAMSmartEnergyFundhaveyettoproducetheexpectedreturn.InDecember,wesoldourstakeintheSAMSmartEnergyFundandusedtheproceedstobolsterourpositionintheHendersonGlobalCareGrowthFund.

Indexed investmentsThebulkofourbondandequityholdingsremaininvestedinattractivelypricedandwell-runfundsthattrackpopularindicessuchastheSMI,DowJonesandSwissBondIndex.

Currency hedgesThePVScontinuestohedgeitsUSDollarandEurocurrencyrisks.ThescopeofthisoperationwasadjustedinDecembertoreflecttheactualinvestmentvolume.

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Mortgage loansWehavemadegoodprogresswithregardtobeneficiaries‘mortgageloans.ThesetotalaroundCHF27.2million,representing4.3%ofourpensionscheme‘sassets.Asat31December2011,thePVScarried37variable-ratemortgagesatanaggregateloanvalueofCHF11.5millionand46fixed-ratemortgagestotal-lingCHF15.7million.

Funding ratioDetailsoftheoverallallocationofthePVSassetsandthecurrentfundingratioareprovidedmonthlyonourweb-site www.pv-swissport.ch under «Performance». The reports are updated on or around the 20th of each month.

Investment regulationsThe structural reform of occupational pensions has made a revision of the investment regulations necessary. Following extensive groundwork, the Board of Trustees approved the investment regulations valid from 1January2012atitsmeetingon31January2012.TheOfficeofOccupationalPensionPlansandFoundationsoftheCantonofZurichhassinceapprovedthenewregulations.

Regulations concerning provisions and fluctuation reservesTheseregulationsgovernthesettingupofprovisionsandfluctuationreserves.Theymustbeobservedbytheexpertwhencalculatingtechnicalprovisionsandfluctuationreserves.

The new BVG 2010 actuarial data together with the standard cross-sectional mortality tables rendered the current regulations obsolete. The Board of Trustees approved the new regulations by circular decision on 29 February 2012; they entered into force with retroactive effect from 31 December 2011.

Stagnating salariesTheaverageinsuredsalaryinthePVSinrecentyears(2009–2011)remainedstableatapproximatelyCHF60500.

Thismeansthat,despitethestagnationinaveragefigures,workinginsureesactuallyreceivearise,albeitsmall, in salary each year. This is because insurees entering retirement earn a higher salary than young insurees who have just joined the company.

Despitetheannualriseinpensionpayments,thePVS‘scashflowfromregulatorycontributionsandbenefitsissettoremainpositiveforyearstocome.ThisishelpedbythefactthatthePVShasrelativelyfewpensionrecipients. As at 31 December 2011, the fund comprised 313 pension recipients (not including recipients of child’spensions)and3448workinginsurees,aratioof1:10.

Determination of interest rates

Interest paid on old-age savings in 2011Initsresolutionof22November2011,theBoardofTrusteesdecidedtopayinterestof2%onallinsurees‘old-agesavingsfor2011(previousyear:2%),therebyadoptingtheBVGinterestratesetbytheSwissFederalCouncil.ThoseinsureeswhoretiredorleftthePVSduringthecourseoftheyearreceivedthisinterestretrospectivelyatthe end of 2011.

Determination of the interest rate payable in 2012 TheBoardofTrusteeswilldecideontheinterestratepayableoninsurees‘retirementsavingstowardstheendof 2012. The Board of Trustees has chosen to proceed in this way as it is impossible to make reliable predic-tionsofdevelopmentsrelatingtothe«thirdcontributor»,i.e.thefinancialmarkets.

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On2November2011,theFederalCouncildecidedtosettheBVGminimuminterestratefor2012at1.5%.Theminimum rate is not binding on super-mandatory retirement savings.

2012 interest rate for intra-year eventsAsin2004-2007andin2009-2011,thePVSwillnotpayanyinterestonamountswithdrawnfromtheschemeby insurees leaving or retiring during the course of the year. Any interest paid on such amounts at a later date will be based on the interest rate determined for 2012.

Projected interest rate from 2013Althoughtheprojectedinterestratewillremainat2%andthuscorrespondstotheBVGinterestratesetbytheSwissFederalCouncilfor2011,itishalfapercentagepointabovetheBVGinterestrateof1.5%setfor2012.TheprojectedinterestrateisusedtocalculatefuturePVSbenefits.Ithasbeenusedforallcalcula-tionsunder«projectedbenefits»(foroldage,disabilityanddeath)shownontheannualindividualstatementofbenefitsforPVSbeneficiariessince1January2010.

Pension adjustments for 2012TheBoardofTrusteesalsoresolvedat itsmeetingof22November2011that itwouldnot increasePVSpensionsfromtheirpresentlevelswitheffectfrom1January2012inviewofthecurrentsituationonthefinan-cialmarketsandthegenerational imbalance(highertechnical interestrateof3.5%paidonpensionfundcapitalcomparedtotheinterestcurrentlybeingearnedonworkinginsurees‘old-agesavings).

Risk insurance premiumAtitsmeetingon23November2010,theBoardofTrusteesoptedtoreducetheriskinsurancepremiumfrom3.5%to2.5%.ThisriskinsurancepremiumforthebenefitspayablebythePVSintheeventofdisabilityanddeathissplitequallybetweentheinsureesandtheemployer.ForinsureesthismeansthatfromJanuary2011ariskinsurancepremiumofonly1.25%(previously:1.75%)oftheinsuredsalarywillbedeductedfromtheir monthly salaries.

Participation of pension recipients in any surplus incomeAspensionsarefully fundedundertheBVGcapitalisationsystem, incontrast totheAHVsystem,whichoperates on a pay-as-you-go basis, there are no pension increases during their term of payment. The accu-mulated capital is consumed during the period of payment of the pensions. Together with the returns gene-ratedoninvestments,thiscapitalmustbesufficienttofundthepensionsduringtheirentireterm.

Participation is possible only in years with a good investment performance, when pension recipients could be allowed to participate in the surplus income generated from their investments. It is possible to allow pen-sionrecipientstoshareintheinvestmentperformanceifthePVShassurplusincomeleftoveraftermeetingallofitsstatutoryandregulatoryobligations.On21September2010,the«Guidelinesontheparticipationofpension recipients in surplus income» were adopted.

Swissport Health Management (formerly Case Management)SwissportHealthManagementinvolveshelpingSwissportstaffwhoareillorhavesufferedanaccidenttoreturn to the workplace. The team is also responsible for social counselling, debt counselling, health promo-tion, accident prevention and addiction prevention.

Thenewteam,whichisresponsibleforSwissportZurichandSwissportBasel,wasbuiltupfromtheautumnof 2009 onwards. The team consists of three employees who have many years of professional experience inairportsandalsoholdadegreeeitherinsocialworkorpsychology.SwissportGenevahasitsownteam.

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Morethan200peoplereceivedsupportin2011.AlmosthalfofthesewereabletoreturntoworkatSwissport,with the remainder continuing to receive ongoing care and treatment. The number of insurees with long-term illnesses remained stable in the year under review.

Trainingforteamleadersandcustomerservicemanagersnowfeaturesanewmodule«Managersandtheirresponsibilityfortheirownhealthandthatoftheirstaff»,whichisbeingrunbymembersoftheHealthManagementteam.

Reinsurance of risks by PKRück for six yearsAtitsmeetingof23November2010,theBoardofTrusteesdecidedtoreinsuretherisksofdisabilityanddeathwithPKRückforsixyearsfrom2011to2016.PKRückisasoundandsolidpartnerandsharesourobjectiveofreducingclaimsandcosts.AnewfeatureofthisarrangementforthePVSisthattheremayberestrictions with respect to super-mandatory cover.

CooperationbetweenthePVSandPKRückwasverygoodinthefirstyear.Themaintasksinvolvedwork-flowdevelopmentandcollectinghealthquestionnairesfrominsurees.

PKRückhadnoclaimstohandleintheyearunderreview,asclaimsonlymaterialiseafteradelayofaround12-24 months in the case of pension funds.

Evidence of survival of our pension recipientsAtthebeginningof2011,allpensionrecipientswererequestedtoprovideevidenceofsurvival,andtherequestwasmetinfullbyallrecipients.ThePVShasthusensuredthatbenefitsarenotbeingpaidoutunjustly.

Inthefuture,thePVSwillberequestingpensionrecipientstoprovideevidenceofsurvivalatregularintervals.

Asset management costs relatively low at PVSAstudypublishedbytheFederalSocialInsuranceOfficeintheearlysummerof2011cametotheconclusionthatassetmanagementcostsofSwissoccupationalpensionfundsamounttoaroundCHF3.9billionayear,whichcorrespondsto0.56%oftotalpensionfundassets.

Thesecostsfluctuatebetween0.15%and1.86%ofassets,dependingonthefundinquestion.Onlythosecostschargeddirectlytoapensionfundaredisclosedinthefund‘sannualfinancialstatements.InthecaseofthePVS,thecostsin2011amountedtoCHF409779(2010:CHF576313)or0.07%(2010:0.09%).

TotalassetmanagementcostsatthePVSamountedtoaroundCHF1.7millionin2011(2010:aroundCHF2.2million),i.e.0.26%(2010:around0.36%)oftotalfundassets.Assetsareinvestedexclusivelyincost-effective collective investments and investment foundations; a conscious decision has been made not to invest in individual securities. This ensures that we are able to broadly diversify our investment risks.

ThismeansthatassetmanagementcostsarerelativelylowatthePVS,andretirementsavingsaremanagedcost-effectively.

Administration costs also relatively low at the PVSSecondpillaradministrationcostsofaroundCHF391wereincurredperinsureeandyearin2009,notincludingthe above-mentioned asset management outlay. According to a study, these costs could only be reduced by simplifyingprocessessignificantly.

AtthePVS,thefiguresareasfollows:2009:CHF306;2010:CHF294;2011:CHF286.

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Tages-Anzeiger pension fund ratings – fifth placeForthesecondtime,thePVStookpartinthe«Tages-Anzeiger»pensionfundratingandcamefifthoutof39 pension funds, a rise of two places compared with the previous year.

ThePVSratedaboveaverageintermsof its lowcoordinationamount,theoptionofchoosingdifferentsavingsplans,andtheAHVbridgingpensionpaidoutbySwissport.Intermsofperformanceandinterestrates,weratedslightlybelowaverage.However,ourfundingratio,thekeyindicatorofanypensionscheme,was among the best.

Wewereratedfourthonthebasisofbenefitspayableandeighthforfinancing.Theoverallfifthplaceratingwasachievedmainlyduetothefollowingaspects:

• Coordination amount Thisamountstoonly20%ofabasicsalaryandiscappedatasingleAHVold-agepension(in2011:

CHF13920).Whileallinsureesprofitfromthis,thecoordinationamountpercentageismosteffectivefor low to medium-sized salaries.

• Ordinary retirement age AtSwissportandinthePVS,theordinaryretirementageforbothmenandwomenis63.Thisisoneand

twoyears respectivelybeforeAHVretirementage,meaning thatSwissport insureescanbegin theirwell-earnedretirementearlierthanmostoftheirSwisscounterparts.

• AHV bridging pension SwissportgrantsitsstaffabridgingpensiontocovertheperioduntiltheyreachordinaryAHVretirement

age and receive the state pension, which only begins later.

• Scale of survivor‘s pension Widows/widowersareentitledtoasurvivor‘spensionof80%ofacurrentretirementordisabilitypension

andarethusmuchbetteroffthanwiththestatutoryminimumof60%.

• Choice of different savings plans WiththePVS,insureescanchoosebetweentheSparplanPlus,wheretheyvoluntarilycontribute9%

(anadditional3percent)of their insuredsalary towards their futureretirementbenefits,orSparplanStandard,wheretheycontribute6%oftheirsalary.Thesavingsplancanbechangedon1Januaryofeach year.

• Contribution rates Contributionratesbetweentheageof25and63remainthesameandamountto15%overallinthe

Standardplan.Theygiverisetoahighersavingsrateduringtheaccumulationprocessthanwiththestatutory minimum rate, which applies a system of sliding-scale contributions incremented every ten years,withthetoprateof18%beingreachedfromtheageof55onwards.

• Pre-financing of early retirement InthePVS,insureeshavetheoptionofpre-financingearlyretirementbypayinginasinglepremiumin

order to receive the same pension as they would have received at the age of 63.

2011 pension planThepensionplanvalidfrom1January2011canbeviewedonourwebsitewww.pv-swissport.ch.Thechangesrelate to the risk insurance premium, the new maximum coordination amount and the new admittance threshold tojointheSupplementaryPensionPlan.

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Scheme regulations valid from 2011Since1January2011,newregulationshaveappliedtoolderemployeesinoccupationalpensionschemesthatare designed to promote their participation in the labour market and to help them to remain longer in it. Insurees whoreducetheirworkinghoursfromtheageof58(withamaximum50%reductioninsalary)arenowabletomaintain the same level of pension provision.

AsthePVShasarrangedreinsurancethroughPKRückfrom1January2011,anewarticlehadtobeaddedtothepensionschemeregulations,whichwasapprovedbytheBoardofTrusteeson20January2011.PKRückrequiresallnewentrantstocompleteahealthquestionnaireandwouldliketobeabletorestrictbenefitsorimpose other restrictions on insurees who are not fully able to work. This is standard industry practice when benefitsarereinsured.TherelevantclausewasaddedtoArt.3.3,whichsetsouttherulesforadmissiontothepension scheme.

TheBoardofTrusteeshasalsopublishedaneweditionofthe2007pensionschemeregulationsincludingallpreviouschanges.ItisavailableonthePVSwebsiteandwasnotsentoutintheformofahardcopytoallin-surees in order to keep costs down.

Onthebasisofregulationssetdownbyoursupervisoryauthority,theSupervisoryAuthorityforPensionsandTrustsoftheCantonofZurich,theBoardofTrusteesatitsmeetingon10May2011approvedthenewArt.1.4«Reinsurance» detailing how any surplus from reinsurance is to be calculated and appropriated, as well as Art. 15.5«Divorcees‘entitlements».

Confronting the major new challenges of longevity and interest ratesThe conversion rate is the main variable in the second pillar. When an insuree switches from being a working insuree to a pension recipient, their accumulated old-age savings are converted into a pension.Theconversionratedependson:

• Thelifeexpectancyofpensionrecipients→mortality • Thediscountrateappliedtofuturepensionpayments→technicalinterestrate • Survivors‘pensions→levelofthespouse‘spension

Thepensioncalculatedatretirementispaidoutfortherestoftheschememember‘slife.Itisthereforeapromisewithtwounknowns:lifeexpectancyandfutureinvestmentincome.

Ourcurrent«EVK2000»actuarialtablesarebasedondatafromtheperiod1993-1998.The«EVK2000»uses a standard cross-sectional mortality table that assumes that all insurees have the same life expec-tancyirrespectiveoftheyearinwhichtheywereborn.Mortalitytablesaresnapshotstakenataparticularpoint in time and do not take account of the increasing life expectancy of insurees.

Theactuarialcapitalhastobeincreasedwhenthetablesarereplacedbynewoneseveryfivetotenyears,whichmeansthatwehavetosetasideprovisionsforincreasinglongevity(around0.5%peryear).Inthelast10yearsithasbeenimpossibletoearnthecurrenttechnicalinterestrateof3.5%(whichhasbeenunchangedsince1January2001)withthereturnsavailableonlow-riskinvestments.

According to the latest statistics, life expectancy has increased further for both men and women. Accor-ding to BVG 2010 actuarial data, which is based on data from a number of large pension funds with around 2millionbeneficiaries,lifeexpectancyatage63formenisnow23.05years(EVK2000:19.09years)andforwomen25.62years(EVK2000:21.95years).

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Thismeansthatpensionreserveswillhavetobeincreasedfurtherforfixedlifelongpensionsbecausetheyarebeingdepletedtooquicklybytheexcessivelyhighpensionconversionrateandthepersistentlylow investment income.

AsthePVSwasnotyetabletousethenewBVG2010actuarialtables,ouraccreditedpensionactuarywasobligedtosetasideaprovisionofCHF6762323forpensionlosses(2010:CHF8819726).This«cost»ourschemearound1.1percentagepoints(2010:1.6percentagepoints)ofthefundingratioasattheendof 2011.

ItwasessentialforthePVStoadjustitsconversionfactors(AnnexItotheschemeregulations)inthenearfuture to bring them into line with the trends toward rising life expectancy and persistently low investment returns observable in recent years. Over the last eight business years from 2004 to 2011, we were unfor-tunately unable in any one year to pay interest on the old-age savings of our working insurees at the rate of3.5%assumedinthepensioncalculation.

Asourgenerationalbalancesheetonpage26shows,wehavetransferredaroundCHF6millionfromworkinginsureestopensionrecipientssincetheestablishmentofthePVS–andthetrendisrisingduetotheincreasein pension recipients each year. We have had to restore the balance in treatment between working insurees andpensionrecipientsinourPVSpensionscheme.

The Board of Trustees had to take the necessary action in the light of the actuarial realities. This will not mean takinganythingawayfromourfuturepensionrecipients–wewillsimplybedistributingtheir(unchanged)old-age savings over a greater number of years of life.

New conversion factors with effect from 1 January 2013Initsmeetingon10May2011,theBoardofTrusteesunanimouslydecidedtoreducetheconversionfactorsforold-agepensionsanddeferredspouses‘/partners‘pensionswitheffectfrom1January2013.

Forretirementsasof1December2012andpensionsbeginningasof1January2013,theconversionfactorsset out below now apply. These conversion factors are based on the latest BVG 2010 actuarial data with stan-dardcross-sectionalmortalitytables,atechnicalinterestrateof3%andaspouse‘s/partner‘spensionof70%.

Inordertobenefitfromtheconversionfactorshithertoapplicable,anemployeemusthaveenteredretirementby30November2012atthelatestandbegintodrawhis/herpensionby1December2012atthelatest.

Special arrangements for beneficiaries with night-shift credit/shift holiday entitlementsThe conversion factors hitherto used will continue to apply to all employees with outstanding night-shift credit who begin to draw their pensions after 1 December 2012 insofar as the agreement on retirement with out-standingnight-shiftcreditwassetoutinwritingandagreedirrevocablywiththeemployerbefore30Novem-ber 2012, and the employee begins to draw this outstanding credit no later than 1 December 2012.

Reducingthedeferredspouses‘/partners‘pensionsfrom80%to70%ofcurrentold-ageanddisabilitypensionshas helped to cushion somewhat the reduction in the conversion factors for married members.Thereductioneffectivefrom1January2013willalsoaffectourmarried/registered-partnerpensionrecipientswhostartedtodrawtheirpensionsbeforetheamendmentoftheregulationseffectivefrom1January2013.

14

TheBoardofTrusteesisawarethatitsdecisionof10May2011willhavemajorrepercussionsforbenefici-aries. By ensuring that the new regulations only apply to retirements starting 1 December 2012 and by int-roducingspecialarrangementsforbeneficiarieswithnight-shiftcreditorshiftholidayentitlements,theBoardisgrantingallbeneficiariesagraceperiodof1½yearsduringwhichtheymaystillopttoretireundertheoldterms and conditions.

Conversionfactorsforpersonsretiringwitheffectfrom1December2012anddrawingafirstpensioninJanuary2013:

Age of insuree Married /co-habitingwithpartner Unmarried

58 5.01 5.5759 5.10 5.7060 5.21 5.8461 5.32 5.9962 5.44 6.1563 5.56 6.3264 5.70 6.5065 5.84 6.69

To calculate the old-age pension, the conversion factor as a percentage of the savings capital must be used. If theagedifferencebetweenthespouse/partnerismorethan10years,thepensionwillbeadjustedby+/-1%for every year (including years already started) in excess of the 10-year difference.

The table is based on the latest BVG 2010 actuarial data with the standard cross-sectional mortality table, a technicalinterestrateof3.0%andaspouse‘s/partner‘spensionof70%.

WereportedindetailontheseamendmentstotheregulationsinourInformationBulletinNo25dated10May2011. This bulletin also explains the reasons for the changes and provides some sample calculations.

InInformationBulletinNo27dated2December2011,wetooktheopportunitytoremindbeneficiariesonceagainoftheamendmentstotheregulationswitheffectfrom1January2013.

Outlook to 2015ThenewBVG2015actuarialdatawillbeavailablefromtheendof2015.Untilthen,thePVSwillcontinuetouse the standard cross-sectional mortality table. The generation table should be used in preference to the standard cross-sectional mortality table as it already takes the future increase in life expectancy into account. If the generation table is used, there is no need to accrue annual provisions for the longevity of pension recipients.

Outlook for 2012

Slight increase in the popularity of Standard Plus Asof1January2012,atotalof484beneficiaries(=14.6%of3308entitledtodoso,excludingtheinsureesofSwissportBaggageSorting)hadoptedfortheStandardPluspensionplanwhichfeaturesanemployeecontributionof9%(insteadofthe6%undertheStandardplan).Thisisaslightincreaseoverthe453bene-ficiaries(13.4%)asof1January2011.

15

AHV (state old-age) and IV (state disability) pensions same as in 2011Asof1January2012,theAHVandIVstatepensionswerethesameasin2011,i.e.theminimumAHV/IVpensionremainsatCHF1160amonth,themaximumpensionatCHF2320.

ThemaximumAHVstateold-agepensionremainsunchangedatCHF27840ayear.AsaresultourmaximumcoordinationamountalsoremainsthesameatCHF13920,whichisequaltohalfthemaximumAHVpension.TheadmissionthresholdrequiredtojointheSupplementaryPensionPlanalsostayedthesameatCHF104400(=7.5xcoordinationamount).TheminimumsalaryrequiredtojointhePVSalsoremainedatCHF20880(=3/4ofthemaximumannualAHVpension).

IV Revision 6a comes into forceIVRevision6acameintoforceon1January2012.AswithRevisions4and5,theoverarchingobjectiveofRevision 6a is to reintegrate disabled individuals into working life.

• Revision6astipulatesthatadistinctionmustnowbedrawnbetweenreintegrationpriortodisability(entit-lement to a daily allowance from IV state disability insurance) and reintegration after disability (entitlement to a state IV disability pension and a BVG occupational disability allowance).

• Forthedurationofthereintegrationprocessafterdisability,anindividualisstillentitledtoclaimanIVdisabi-lity pension and an occupational disability allowance from the current pension fund.

• Ifreintegrationissuccessful,thecurrentpensionfundwillremainresponsibleforthecaseinquestionfor a protection period of three years. It will continue to manage the retirement savings process and, where applicable, provide a reduced disability pension. The pension fund of the new employer will not become responsible for the individual until the end of the three-year period. This amendment will necessitate adjustments in technical administration and in the pertinent regulations.

Amendments to regulationsVarious regulations will need to be amended on account of the structural reform of occupational pensions. This will affect the pension scheme, investment and organisational regulations.

Strategy and objectives of the Swissport occupational pension schemeTheBoardofTrusteesintendstoaddressthestrategyandobjectivesoftheSwissportoccupationalpensionscheme. Among other things, it aims to establish the direction in which employers and employees would like toseethePVSdevelopinfutureandalsohowitshouldcompensateforthelackofincomefromthethirdcontributor, namely investment income.

New service agreement from 2013 to 2015TheserviceagreementwithPFSAGexpiresattheendof2012.TheBoardofTrusteeswillberequestingtendersfromPFSAGandotherprovidersforanewserviceagreementtorunfrom2013to2015.TheBoardplanstoreachthepertinentdecisionbytheendofJune2012.

ThanksInclosing,Iwouldliketothankourfounder-employer,myfellowtrustees,ourManagingDirector,ourcustomeradvisors, our accountant, our accredited pension actuary, our statutory auditors, our investment controller and PFSAGfortheirconsistentlycommitted,thoroughandprofessionalworkonbehalfofourfoundation.

Yours sincerelyPeter GrafChairman of the Board of Trustees

16

2011ANNUALFINANCIALSTATEMENTS

BalanceSheet Index 31.12.2011 31.12.2010 Note CHF CHFASSETS

Investments 6.4 629 917 212 619 541 948 Liquidity 13338142 24385874 Receivablesfromemployer 7.1.1 2993677 2483179 Otherreceivables 7.1.2 1142547 1201362 CHFbonds 85287907 63671464 eUR bonds (including currency hedges) 37862379 79662247 USDbonds(including currency hedges) 0 29 129 549 Foreign currency bonds 62 958 801 0 Mortgageloans 27223112 28637026 EquitiesSwitzerland 45157304 31120006 EquitiesEurope 25018740 40983861 EquitiesNorthAmerica (including currency hedges) 38357228 39314454 EquitiesPacific 25124539 34044895 Equitiesforeign (sustainable) 25363367 28471787 Equitiesemergingmarkets 30049392 19111741 Commodities (including currency hedges) 31886562 33845987 Realestate 178153515 163478516

Prepaid expenses and accrued income 7.1.3 6 545 851 5 981 773 TOTAl ASSETS 636 463 063 625 523 721

17

Balance Sheet

BalanceSheet Index 31.12.2011 31.12.2010 Note CHF CHFlIABIlITIES

Obligations 4 476 460 2 727 013 Vestedbenefits 4097619 1581880 Capitalpayments 346767 1088154 Otherobligations 7.1.4 32074 56979

Accrued expenses and deferred income 7.1.5 324 793 297 667

Actuarial capital and technical provisions 615 916 351 592 402 681 Actuarialcapitalforworkinginsurees 5.2 453223258 457528902 Actuarialcapitalforpensionrecipients 5.4 147823293 110524307 Technicalprovisions 5.6 14869800 24349472

Fluctuation reserve 6.3 15 745 459 30 096 360

Scheme capital, freely disposable funds, underfunding 0 0 TOTAl lIABIlITIES 636 463 063 625 523 721

18

Index 2011 2010 Note CHF CHF

Regular and other contributions and deposits 31 921 931 69 083 859 Employee‘ssavingscontributions 10694369 10252828 Employer‘ssavingscontributions 15265296 14772039 Employees‘riskinsurancepremiums 2147300 2915020 Employer‘sriskinsurancepremiums 2178008 2952531 One-offdepositsandbuy-inamounts 7.2.1 1635928 1164604 DepositsfromthepartialliquidationoftheGPS 0 35309818 Depositsfromfluctuationreserves 6.3 0 1715842 ContributionsfromLOBGuaranteeFund 1030 1177

Other amounts paid in 10 715 437 10 576 156 Vestedbenefitstransferredintotheschemebyjoininginsurees 9155738 8919592 Homefinancingrepayments/divorce-relateddeposits 7.2.2 1559699 1656564

INFlOW FROM CONTRIBUTIONS, DEPOSITS AND OTHER AMOUNTS PAID IN 42 637 368 79 660 015

Statutory benefits paid -18 315 502 -25 641 530 Old-agepensions -7035166 -5752430 Survivor‘spensions -345410 -321969 Disability pensions -453 996 -384 869 Child‘spensions 7.2.3 -159977 -157097 Lump-sumpaymentsonretirement -9410850 -8644729 Lump-sumbenefitsondeath/disability -910103 -164905 DistributionfromthepartialliquidationoftheGPSto retirees and the disabled 0 -10 215 531

Other benefits paid and withdrawals -17 015 967 -20 587 825 Vestedbenefitspaidoutonleaving -12924746 -13583407 DistributionfromthepartialliquidationoftheGPStopreviousinsurees 0 -3757614 Distributionoffluctuationreservesfrompartialliquidation -73191 0 Homefinancingwithdrawals/divorce-relatedpayments 7.2.4 -4018030 -3246804

OUTFlOW THROUGH BENEFITS PAID/WITHDRAWAlS -35 331 469 -46 229 355

Changes in actuarial capital, technical provisions and contribution reserves -23 440 479 -46 847 868 Creation/releaseofactuarialcapitalforworkinginsurees 5.2 13105825 -11157000 Creationofactuarialcapitalforpensionrecipients 5.4 -37298986 -17952936 Creation/releaseoftechnicalprovisions 5.6 9479672 -7307525 Interestpaidonsavingscapital 5.2 -8800181 -8714565 Creation/releaseoffluctuationreservesfrom partialliquidation/deposits 6.3 73191 -1715842

Insurance expenses 7.2.5 -2 104 461 -182 293

NET INCOME FROM INSURANCE ACTIVITIES -18 239 041 -13 599 501

OPERATING INCOME STATEMENT

19

Index 2011 2010 Note CHF CHF Net income from investment activities 6.6 5 215 915 7 719 494 Incomefromliquidity -265310 72778 IncomefromCHFbonds 4038221 2214561 Income from eUR bonds (incl. currency hedges) 6.6.2 2044137 -10975247 IncomefromUSDbonds(incl. currency hedges) 6.6.3 3547792 214611 Income from foreign currency bonds 914 412 0 Incomefrommortgageloans 668479 783958 IncomefromEquitiesSwitzerland -3022344 531818 IncomefromEquitiesEurope -4562505 -3264801 IncomefromEquitiesNorthAmerica (incl. currency hedges) 72187 3006884 IncomefromEquitiesPacific -4817898 1324444 IncomefromEquitiesforeign(sustainable) -3032777 -2162051 IncomefromEquitiesemergingmarkets -4493667 1636128 Incomefromsecuritieslending 6.7 0 75472 Income from real estate 6.6.1 14 439 293 10 919 560 Income from hedge funds 0 5 399 Income from commodities (incl. currency hedges) 115 325 3 946 942 Assetadministrationcosts 7.2.6 -409779 -576313 Interestonvestedbenefits -19651 -34649

Other income 11 381 14 883

Other expenses 7.2.7 -225 519 -226 197

Administrative expenses 7.2.8 -1 040 447 -1 038 022

ExPENSE SURPlUS BEFORE RElEASE OF FlUCTUATION RESERVE -14 277 711 -7 129 343

Release of fluctuation reserve from surplus of expenses 6.3 14 277 711 7 129 343

INCOME/ExPENSE SURPlUS 0 0

OPERATING ACCOUNT

20

NOTES

1 Principles and organisation

1.1 legal form and objectiveTheSwissportEmployeePensionScheme(«PersonalvorsorgeSwissport»orPVS)isatrustestablis-hedbySwissportInternationalAGinaccordancewithArt.80ff.oftheSwissCivilCode(ZGB),Art.331oftheSwissCodeofObligations(OR)andArt.48(2)oftheSwissFederalLawonOccupationalOldAge,Survivors‘ andDisabilityBenefitPlans (BVG).The trust is domiciledat the legal domicileofSwissportInternationalAGinOpfikon,Switzerland,andissubjecttostatutorysupervision.

TheobjectiveofthePVSistoprovideanoccupationalpensionschemewithintheframeworkoftheBVGanditsimplementingprovisionstoinsurethepersonnelofSwissportInternationalAGandothercom-panies closely linkedwith it in business or financial terms, their next of kin and their survivorsagainstthefinancialconsequencesofoldage,disabilityanddeath.

1.2 Registration under the BVG and with the lOB Guarantee FundThePVSwasenteredintheRegisterofOccupationalPensionSchemesoftheCantonofZurich(underregisternumber1377)on1January2004,asattestedbythecorrespondingofficialconfirmationthereofdated24February2004.ThePVSissubjecttotheSwissFederalLawonVestedBenefitsinOccupationalRetirement,Survivors‘andDisabilityBenefitPlans(FZG)andisthusaffiliatedtotheLOBGuaranteeFund.

1.3 Deed of trust and regulationsThePVSwasestablishedthroughapublicdeedoftrustdated15September2003andwasenteredintheCommercialRegisteroftheCantonofZurichon14November2003.

Angabe zu den ReglementenRegulations Approved EffectivePensionSchemeRegulations 20January2011 1January2011Regulations on Provisions and Reserves 29 February 2012 31 December 2011BylawsandTermsofReference 16September2003 16September2003ElectionRegulations 16September2003 16September2003InvestmentRegulations 23November2010 1December2010StrategicAssetAllocation 22November2011 1December2011PartialLiquidationRegulations 24November2009 1December2009

1.4 Governing body and signatory authorityAt31December2011,theBoardofTrustees,whichiscomposedofanequalnumberofemployer‘sandemployees‘representatives,consistedofthefollowingmembers:

Board of TrusteesEmployer‘s representatives Employees‘ representatives

(termofoffice1July2010–30June2013)Peter Graf Chairman* Philippe Crippa Deputy Chairman*CordulaHofmann Member* MargritCoimbra Member*Eva-MariaKerner1) Member* SonjaEckerlin1) Member*

1)MemberoftheInvestmentsCommittee

There were no personnel changes to the Board of Trustees in 2011.

21

Operational management and accountingMarkusStaudenmaier ManagingDirector*ReymondFrüh HeadofAccounting*UrsAckermann CommitteeMember**collectivesignatoryauthority(twosignaturesrequired)

1.5 Accredited pension actuary, statutory auditors, investment controller and supervisory authoritiesAccredited pension actuaryRolandGuggenheim,Mercer(Switzerland)SA,Tessinerplatz5,8027Zurich

Statutory auditorsKPMGAG,Badenerstrasse172,8004Zurich

Investment controllerMarkusSchneider,PensionToolsGmbH,Galtbergstrasse1A,8625Gossau

Supervisory authoritiesOfficeofOccupationalPensionPlansandFoundationsoftheCantonofZurich(BVS),Neumühlequai10,8090Zurich

1.6 Affiliated employersThefollowingcompanieswithclosebusinessandfinanciallinkstofounder-employerSwissportInter-nationalAGarealsoaffiliatedwiththePVS:SwissportInternationalAG,Zurichoperations,ZurichAirport,ZurichSwissportInternationalAG,Baseloperations,BaselEuroAirport,BaselSwissportInternationalAG,Genevaoperations,GenevaAirport,GenevaSwissportBaggageSortingAG,Kloten,ZurichUnitpoolAG,Kloten,Zurich,until31December2011PrivatPortS.A.,Meyrin,GenevaSwissportGroupServicesGmbH,Baar,ZugCareportAG,Opfikon,ZurichGVAssistanceS.A.,LeGrand-Saconnex,Geneva

UnitpoolAG,Klotenleftthepensionschemewitheffectfrom31December2011.NonewemployersjoinedthePVSin2011.

Notes

22

2 Working insurees and pension recipients

2.1 Working insurees Swissport Swissport Swissport International Zürich Basel 2011 2010 2011 2010 2011 2010At 1 January 75 69 1 683 1 649 361 358Joined 18 20 263 313 48 22Left 8 13 235 260 12 13Retired 1 1 27 15 5 5Newlydisabled 0 0 4 2 0 1Died 1 0 1 2 0 0At 31 December 83 75 1 679 1 683 392 361ofwhomriskinsuranceonly 1 1 132 159 17 12Old-age savings at 31 December 27 096 249 24 190 735 214 594 543 214 399 909 42 121 343 42 552 527of which BVG old-age savings at31December 5371089 4673207 81187704 78408546 14436599 14140510

Swissport Swissport Geneva Baggage Sorting Unitpool 2011 2010 2011 2010 2011 2010At 1 January 883 871 170 164 11 11Joined 154 123 24 22 9 2Left 79 82 16 13 19 2Retired 20 28 2 2 1 0Newlydisabled 0 0 0 1 0 0Died 0 1 0 0 0 0At 31 December 938 883 176 170 0 11ofwhomriskinsuranceonly 79 79 7 11 0 0Old-age savings at 31 December 129 974 874 134 901 860 21 088 578 21 031 324 0 2 280 453of which BVG old-age savings at31December 47745418 47287060 8987357 8566090 0 659839

PrivatPort ISS Aviation AG, Kloten, Swissport Group Zurich Operations Services GmbH 2011 2010 2011 2010 2011 2010At 1 January 7 7 2 2 25 25Joined 3 1 0 0 13 5Left 1 1 1 0 8 4Retired 0 0 0 0 0 1Newlydisabled 0 0 1 0 0 0Died 0 0 0 0 1 0At 31 December 9 7 0 2 29 25of whom risk insurance only 1 0 0 0 0 1Old-age savings at 31 December 304 574 372 263 0 61 706 6 097 040 6 144 722of which BVG old-age savings at31December 167007 181293 0 34334 1546986 1633085

Notes

23

Careport AG GVAssistance S.A. 2011 2010 2011 2010At 1 January 82 104 47 37Joined 23 12 8 13Left 13 31 3 3Retired 1 3 1 0Newlydisabled 0 0 0 0Died 0 0 0 0At 31 December 91 82 51 47ofwhomriskinsuranceonly 7 5 6 3Old-age savings at 31 December 5 027 363 4 502 984 6 918 694 7 090 418ofwhichBVGold-agesavingsat31December 2093313 1818375 2833502 2765943

Total PVS Change over 2011 2010 previous yearAt 1 January 3 346 3 297 49Joined 563 533 30Left 395 422 -27Retired 58 55 3Newlydisabled 5 4 1Died 3 3 0At 31 December 3 448 3 346 102ofwhomriskinsuranceonly 250 271 -21Old-age savings at 31 December 453 223 258 457 528 902 -4 305 644of which BVG old-age savingsat31December 164368975 160168281 4200694

Working insurees by BVG Women Men Totalage at 31 December 2011 2010 2011 2010 2011 201018–24 106 122 144 149 250 27125–34 423 410 555 505 978 91535–44 335 349 526 513 861 86245–54 353 337 539 505 892 84255–65 181 178 286 278 467 456Total 1 398 1 396 2 050 1 950 3 448 3 346

The average age of a PVS working insuree is 40.9 years (previous year: 40.9 years).

Notes

24

2.2 Pension recipientsPension type – Women Men Totalstatus 2011 2010 2011 2010 2011 2010Old-agepensions 101 83 167 139 268 222Disabilitypensions 17 15 14 11 31 26Spouse’spensions 12 12 2 2 14 14Child‘spensions 13 16 19 17 32 33Total 143 126 202 169 345 295

Pension type – Total Change Totaldevelopment 31.12.2011 New Retirement left 31.12.2010Old-age pensions 268 2 45 1 222Disabilitypensions 31 7 0 2 26Spouse‘spensions 14 0 0 0 14Child‘spensions 32 8 0 9 33Total 345 17 45 12 295

Notes

25

3 Fulfilment of objectives

3.1 Details on the benefit regulations and pension plansThePVSPensionSchemeRegulationsconsistoftwoelements,theBenefitRegulationsandthePensionPlans.TheBenefitRegulationsareapplicabletoallPVSbeneficiaries.Theseregulationslaydownthegeneraltermsandconditionsunderwhichbenefitsaregranted,thescheme‘sfundingprinciples,thetypeandamountofbenefitsawardedandfurthergeneralprovisions.

Benefit RegulationsAllemployeeswhofallundertheSwissFederalLawonOccupationalOldAge,Survivors‘andDisabilityBenefitPlans(BVG)areadmittedtothePVS.EmployeesarealsopermittedtoremainwithinthePVSasexternalinsureesaftertheyhaveleftaPVS-affiliatedcompanyundercertainconditionsspecifiedinanappendixtotheBenefitRegulations.

ThebenefitsawardedunderthePVSarebasedondefinedcontributions.

APVSinsureebecomesentitledtoordinaryPVSretirementbenefitsuponreachingtheageof63.PVSretirementbenefitsmayalsobedrawnbeforesuchtime,uptoamaximumoffiveyearsbeforeordinaryretirementage.Retirementbenefitsmaybedrawnintheformofalump-sumcapitalpayment,a lifelong old-age pension or a combination of the two. The conversion rates used to convert savings capitalintoold-agepensionsvaryaccordingtothebeneficiary‘sageandmaritalstatus.

TheannualPVSdisabilitypensionamountsto6.5%of the insuree‘sprojectedold-agesavingsontheir63rdbirthday.Allsuchprojectionsassumeinterestpaidatanannualrateof1.5%.

TheannualPVSspouse‘spensionamountsto80%oftheinsuree‘sretirementorfull-disabilitypension.ThePVSwill,uponwrittenrequest,paybenefitsequivalenttoaspouse‘spensiontothesurvivinglong-termpartnerofadeceasedemployee,subjecttofulfilmentofthecorrespondingregulatoryprovisions.Insureeswhohaveenteredintoaregisteredpartnershipenjoythesamebenefitsandentitlementsasmarriedinsurees.Shouldaworkinginsureediewithoutdesignatingalong-termpartner,alump-sumpaymentwillbemadeamountingtotheinsuree‘stotalold-agesavingsatthetimeofdeath.

Theorphan‘sandchild‘spensionforchildrenofdisabilitypensionrecipientsis10%oftheinsuree‘slastinsuredsalary,or15%inthecaseoforphansifbothparentsaredeceased.Thechild‘spensionforchildrenofold-agepensionrecipientsamountsto10%oftheinsuree‘slastinsuredsalary,uptoamaximumofCHF5400ayear.

Pension plansThePVS‘spensionplansspecifythesalaryinsuredunderthePVSandthedistributionofcontributionsand premiums between the employer and the employee for basic and supplementary occupational pension provision.

AllemployeeswhofallundertheBVGareadmittedtothePVS‘sBasicPensionPlan.

TheSupplementaryPensionPlanisprovidedforallmanagementpersonnelwithindividualcontractsofemploymentwhoseannualsalary(includingyear-endbonuses)exceeds7.5timestheminimumAHVstate old-age pension. For part-time employees, this threshold is reduced in proportion to their degree of employment.

Notes

26

Forthosepensionplanswhoseprovisionsordinarilysettheemployee‘scontributionat6%oftheirinsuredsalary, the insuree isoffereda furtheroption–namedStandardPlus–underwhich theemployee‘scontributionamountsto9%oftheirinsuredsalary,andthusold-agesavingscontributionsamountingto18%oftheemployee‘sinsuredsalary.

Thefollowingpensionplansexist(eachinBasicandSupplementaryversions):• TheStandardPensionPlan forallSwissport companies inSwitzerland (excludingSwissportBaggageSortingAG)

• TheStandardPlusPensionPlanforallSwissportcompaniesinSwitzerland(excludingSwissportBaggageSortingAG)

• ThePensionPlanofSwissportBaggageSortingAG

InsureesundertheStandardPensionPlanpayasavingscontributionof6%oftheirinsuredsalary,whileforthoseundertheStandardPlusPensionPlanthecorrespondingcontributionis9%.Underbothplans,theemployer‘ssavingscontributionis9%oftheemployee‘sinsuredsalary.

TheinsuredsalaryforBasicPensionPlanpurposesistheemployee‘ssalaryincludinganyyear-endbonuseslessthecoordinationamount.Thiscoordinationamountamountsto20%oftheemployee‘ssalary,uptoamaximumof50%ofthemaximumAHVold-agepension.

TheinsuredsalaryforSupplementaryPensionPlanpurposesistheemployee‘ssalaryincludinganyyear-endbonuseslessacoordinationamountof7.5timestheminimumAHVstateold-agepension.Forpart-time employees, this coordination amount is reduced in proportion to their degree of employment. AnysalarycomponentscoveredbytheSupplementaryPensionPlanarenotcoveredbytheBasicPension Plan.

3.2 Funding and funding methodTheold-agesavingscontributionsundertheStandardPensionPlancorrespondto15%oftheinsuredsalaryintheBasicversionand21%intheSupplementaryversion.UndertheStandardPlusPensionPlan,theyamountto18%oftheinsuredsalaryintheBasicversionand24%intheSupplementaryversion. The distribution of these contributions between employer and employee varies from plan to plan.

Theriskinsurancepremiumis2.5%oftheinsuredsalaryandissharedequallybetweenemployerand employee.

Thecostsofadministeringthescheme‘sassetsandinvestmentsandthecontributionstotheLOBGuaranteeFundaremetbythePVS.

PVShassignedaserviceagreementwithPFSPensionFundServicesAGfortheadministrationandmanagementofthescheme;witheffectfrom1January2010,thisagreementwasextendedforano-ther three years.

Notes

27

4 Accounting and valuation principles and consistency

4.1 Confirmation of accounting in accordance with Swiss GAAP ARR 26ThefinancialstatementsofthePVSarepreparedinaccordancewiththeguidelinesspecifiedinSwissGAAP ARR 26

4.2 Accounting and valuation principles All accounting, reporting and valuation practices are in accordance with the relevant provisions of the SwissCodeofObligations(OR)andtheBVG.Theannualfinancialstatementsconsistofthebalancesheet, the operating income statement and the notes thereto and provide a true and fair view of the scheme‘sactualfinancialsituationasrequiredbythelegislationonoccupationalpensionprovision.Assetvaluesweredeterminedfortheannualfinancialstatementsasfollows:

Asset category Valuation methodNominal values Liquidity NominalvalueReceivables NominalvalueCHFbonds FairvalueeUR bonds Fair valueUSDbonds FairvalueForeign currency bonds Fair valueMortgageloans Nominalvalue Equities EquitiesSwitzerland FairvalueEquitiesEurope FairvalueEquitiesNorthAmerica FairvalueEquitiesPacific FairvalueEquities(sustainable) Fair valueEquitiesemergingmarkets Fairvalue Real estate in Switzerland Fair value Non-traditional investments Commodities (including currency hedges) Fair value

Investments held in foreign currencies are translated at year-end exchange rates, while foreign-currency income and expenditure are translated at the exchange rate prevailing on the date of the transaction.

Notes

28

5 Actuarial risks, risk coverage and funding ratio

5.1 Form of risk coverage, reinsuranceOn12January2011,thePVS,asemi-autonomouspensionfund,enteredintoareinsuranceagreementwith«PKRückLebensversicherungfürdiebetrieblicheVorsorgeAG»,Vaduz,fortheperiod1January2011to31December2016.ThePVShastherebyreinsureditsrisksforbenefitsondeathanddisabilityin a congruent manner.

Theannualpremiumfor2011amountedtoCHF1922475.Noclaimswerepayablebythereinsurerin 2011.

Thereinsuranceagreementfeaturesaprofit-sharingarrangementforsurplusfunds.Whereavailable,any surplus funds are allocated to the freely disposable funds. If this is not possible, they are allocated tothefluctuationreserve.Ifthisisalsonotpossible,thesurplusfundswillbeusedtocompensateforany underfunding.

Asat31December2011,thesumofCHF529834wasallocatedtoaprovisionforthedistributionofsurplusfunds.FuturebenefitseffectedbyPKRückwillbepartiallychargedtothisprovision.Thefinalaccount will be drawn up after a term of three years and following the settlement of any claims which occurred during this period, i.e. towards the end of 2015.

2011 CHF 2010 CHFSurplus funds at 1 January 0 0Allocation to reserve for the distribution of surplus funds 529 834 0Withdrawal from reserve for the distribution of surplus funds 0 0Credit from stop-loss cover 0 0Surplus funds at 31 December 529 834 0

5.2 Performance of savings capital and interest earned thereon 2011 CHF 2010 CHFTotal savings of working insurees at 1 January 457 528 902 437 657 336Creation/release of working insurees actuarial capital -13 105 825 11 157 000Employees’savingscontributions 10694369 10252828Employer‘ssavingscontributions 15265296 14772039One-off deposits and buy-in amounts 1 635 928 1 132 919DepositsfromthepartialliquidationoftheGPS 0 35309818Vestedbenefitstransferredintotheschemebyjoininginsurees 9150263 8919592Homefinancingrepayments/divorce-relateddeposits 1559699 1656564CapitalformationforpaymentspursuanttoArt.17FZG 21 0Vestedbenefitsonleaving -12924746 -13583407DistributionfromthepartialliquidationoftheGPStopreviousinsurees 0 -3757614Homefinancingwithdrawalsanddivorce-relatedpayments -4018030 -3246804Capital released through lump-sum payments on retirement -9 410 850 *Capitalreleasedthroughlump-sumpaymentsondeath/disability -910103 *Capitalreleasedthroughretirement,deathanddisability -24147672 -30083404DistributionfromthepartialliquidationoftheGPStoretireesandthedisabled 0 -10215531Interest earned on savings capital 8 800 181 8 714 565Total actuarial capital of working insurees at 31 December 453 223 258 457 528 902

* disclosed last year under «Performance of actuarial reserves for pension recipients»

Notes

29

Interestrateonold-agesavingspursuanttoBVG 2.00% 2.00%Interestrateonsupra-mandatoryold-agesavingspursuanttoBVG 2.00% 2.00%

UnderArt.7ofthePVSBenefitRegulations,theBoardofTrusteesmaywaituntiltheannualresultsfor a particular year are available before setting the interest rate to be used for the payment of interest onworkinginsurees‘old-agesavingsfortheyearunderreview.For2011,anypaymentsorbenefitcalculationsmadeduringthecourseof theyearweresubject to interestatarateof0%.Thefinaldecision on the interest rate to be applied to old-age savings was taken at the meeting of the Board of Trusteesof22November2011,whenarateof2%wassetforallold-agesavings.

5.3 Total old-age savings under the BVG 31.12.2011 31.12.2010 CHF CHFTotalold-agesavings 453223258 457528902ofwhichBVGold-agesavings 164368975 160168281

The above amounts include the old-age savings of pending disability cases.

5.4 Performance of actuarial reserves for pension recipients 2011 CHF 2010 CHFActuarial reserves at 1 January 110 524 307 92 571 371Creation of actuarial capital for pension recipients 37 298 986 17 952 936 Creationthroughretirement,deathanddisability 24147672 30083404 DepositofIVdisabilitycapital 5474 31685 Releasethroughlump-sumpaymentsonretirement * -8644729 Releasethroughlump-sumpaymentsondeath/disability * -164905 Releasethroughpensionpayments -7994549 -6616365 Technical interest paid 3 868 351 3 239 998 Creation/releaseofactuarialcapitalforpensions 2983872 -1026824 Creation of actuarial capital new actuarial dataandtechn.interestrate 13687279 0 Creationofactuarialcapitalfordisability/child‘spensions 479878 480072 Actuarialloss 121009 570600Total actuarial capital for pension recipients at 31 December 147 823 293 110 524 307

* disclosed last year under «Release of savings capital for working insurees»

The amount shown under «Creation through retirement, death and disability» corresponds to the savings capital of new pension recipients at the time of retirement. The details of the form in which pensionrecipientschosetodrawtheirPVSretirementbenefits(inCHF)wereasfollows:

Form(s) of retirement benefit chosen 2011 2010 CHF % CHF %Old-agesavingsonretirement 33073997 28723053 ofwhichconvertedintopension 23663147 72% 20078324 70%ofwhichwithdrawnaslump-sumpayment 9410850 28% 8644729 30%

Notes

30

CurrentPVSpensionswerenotincreasedfollowingaresolutionpassedbytheBoardofTrusteestothiseffecton22November2011.ThedecisionnottoawardanincreasewasbasedonthePVS‘scurrentfinancialsituationandthedifferencebetweenthe3.5%technicalinterestrateforpensioncapitalandthe2%interestcurrentlybeingpaidonworkinginsurees‘old-agesavings

To ensure that any future decisions on adjustments to current pensions can be taken on a sound basis, theBoardofTrusteeshasresolvedtokeepagenerationalbalancesheettoquantifytheaccruedfundsbeing transferred from working insurees to pension recipients at any given time. This will be done by takingthedifferencebetweentheinterestpaidonworkinginsurees‘actuarialcapitalandthetechnicalinterestpaidonpensionrecipients‘actuarialcapital(includinganallowanceforincreasinglongevityrisk)andaddingittothepreviousyear‘sbalance.Anyfurthertransfersbetweenworkinginsureesandpension recipients will not be recognised on this balance sheet.

A negative generational accounting balance will indicate that the transfer of accumulated funds is in favour of pension recipients and will mean that current pensions cannot be increased until this transfer amounthasbeenoffset.AccordingtothecalculationsofthePVS‘saccreditedpensionactuary,thegenerationalbalancesheetasat31December2011wasasfollows:Year Pension Working insurees‘ Generational Interest rate Technical interest recipients‘ actuarial capital accounting for working rate for pension actuarial capital at 31.12 balance insurees recipients plus at 31.12 in CHF in CHF in CHF plus 0.5%**2004 5736094 454967221 -189865 *0.69% 4.00%2005 12309234 476536449 -192233 2.50% 4.00%2006 29207142 480907213 -226743 3.25% 4.00%2007 49260686 469478994 -378525 3.25% 4.00%2008 70396137 444490046 -895093 2.75% 4.00%2009 92571371 437657336 -1887231 2.00% 4.00%2010 110524307 457528902 -2285975 2.00% 4.00%2011 147823293 453223258 -3047905 2.00% 4.00%TOTAl -9 103 570

* 2.25%onBVGold-agesavingsand0%onsupra-mandatoryold-agesavings;BVGsavingsaccountedfor30.6%oftotalold-agesavings

** see 5.6 below on provisions for increased longevity of pension recipients

Pensionrecipients‘actuarialcapitalwasdistributedasfollowsamongthevarioustypesofpensionsatyear-end:Actuarial capital for pension recipients 31.12.2011 31.12.2010 Change over CHF CHF previous year in CHFDeckungskapitalAltersrentenbezüger 131594661 96618395 34976266DeckungskapitalEhegatten-bzw.Lebenspartnerrenten 6897435 6260119 637316Deckungskapital Invalidenrenten 8 342 204 6 650 083 1 692 121DeckungskapitalKinderrenten 988993 995710 -6717Total Vorsorgekapital Rentner 147 823 293 110 524 307 37 298 986

Notes

31

5.5 Result of the latest actuarial appraisalThelatestactuarialappraisalofthePVSwasconductedasat31December2011.Theaccreditedpensionactuaryconfirmedthereinthat•theschemeisinapositiontomeetallitsobligations;•theprovisionsoftheregulationsapplicabletothescheme‘sbenefitsandfundingcomplywiththerelevantlegalrequirements.

5.6 Actuarial principlesThe accounting principles are based on BVG 2010 actuarial data and the standard cross-sectional mortalitytableprojectedto2012(previousyear:EVK2000)atatechnicalinterestrateof3.0%(previousyear:3.5%).ThecalculationshavebeenmadeinaccordancewiththePrinciplesandGuidelinesforAccreditedPensionActuariesoftheSAAandtheSwissChamberofPensionActuariesaccordingtothe closed fund principle.

Theone-offcostsfortheswitch-overtoBVG2010actuarialdataamountedtoCHF13687279.Categories of 31.12.2011 31.12.2010 Change over technical provisions CHF CHF previous year in CHFProvisionforincreasedlongevityofpensionrecipients 0 6078837 -6078837Provisionforpensionlosses 6762323 8819726 -2057403Provisionforpendingdisabilitycases 8107477 0 8107477Risk-related provision 0 9 450 909 -9 450 909Total technical provisions 14 869 800 24 349 472 -9 479 672

Since2011,theprovisionforincreasedlongevityofpensionrecipientshasbeenincorporatedinthetechnical provisions and is no longer shown separately.

The provision for pending disability cases is based on current cases of sickness at year-end that have alreadylastedmorethan60days.Asat31December2011,atotalof67insurees(previousyear:73)wereawaitingadecisiononthepossibleprovisionofdisabilitybenefits.

The provision for pension losses has been created to compensate for pension losses caused by the conversion rates being too high compared with the technical interest rates.

The provision for death and disability risks is based on the theoretical aggregate claims distribution accordingtoPanierforallworkinginsurees.Thisisusedtoensureadequateprovisionforextremelynegativefluctuationsindeathand/ordisabilityclaims.Theamountiscalculatedtoensurethat,togetherwiththeriskinsurancepremiumsexpected,thereisa99%probabilitythatitwillnotexceedtheclaimsreceived in the following year.

The risk-related provision is a provision for pending disability cases and a provision for death and disability risks.

The risk-related provision is determined using a range with minimum and maximum amounts. This provision is increased through risk insurance premiums, with the capitalised claims deriving from death or disability for the current year taken directly from this provision.

Notes

32

If the risk-related provision falls below the minimum prescribed as a result of the trend in claims, a corresponding amount is transferred to it and charged to the operating result at the balance sheet date. If the risk-related provision exceeds the maximum prescribed, the surplus amount is credited to the operating result at the balance sheet date.

5.7 Funding ratio as defined in Art. 44 BVV2 31.12.2011 31.12.2010 Change over previous year CHF CHF in CHFTotalassetsatfairvalue 636463063 625523721 10939342lessliabilities -4476460 -2727013 -1749447lessaccruedexpensesanddeferredincome -324793 -297667 -27126Assets available 631 661 810 622 499 041 9 162 769

Actuarialcapitalforworkinginsurees 453223258 457528902 -4305644Actuarialcapitalforpensionrecipients 147823293 110524307 37298986Technicalprovisions 14869800 24349472 -9479672Actuarial capital required 615 916 351 592 402 681 23 513 670

Funding surplus as per Art. 44, para. 1 BVV2 15 745 459 30 096 360 -14 350 901(assetsavailablelessactuarialcapitalrequired)Funding ratio as per Art. 44, para. 1 BVV2 102.6% 105.1% (assetsavailablex100dividedbyactuarialcapitalrequired)

ThePVS‘sfundingratioasdefinedinArt.44,para.1BVV2stoodat102.6%at31December2011.

6 Note on investments and on the net return on investments

6.1 Organisation of investment activities and investment regulationsThePVS’sInvestmentRegulationsspecifytheassignmentofresponsibilities,authoritiesandcontrolfunctions between the Board of Trustees and the Investments Committee.

Board of TrusteesTheBoardofTrusteesisresponsiblefordeterminingthePVS’sinvestmentstrategyandtheassetmanagement institutions commissioned with its implementation. To ensure the constant supervision of these activities, the Board of Trustees appoints a two-member Investments Committee of one employer‘sandoneemployees‘representative.

Notes

33

Investments CommitteeThe InvestmentsCommittee is responsible for implementingandmonitoring thePVS‘s investmentstrategy,ensuringthattheweightingsoftheassetcategoriesremainwithinthespecifiedrangesandmonitoringtheactivitiesof theportfoliomanagersandtheadministrativeoffice.TheInvestmentsCommittee generally meets every two months. Category Asset management mandated to Portfolio managerMoneymarketinvestments PictetMoneyMarketCHF Pictet&Cie SyzAMLiquidityMoneyMarketCHF BankSyz&CoCHFbonds SyzAMSwissBondIndexFund BankSyz&Co SyzAMSwissGovernmentBondIndexFund CIFSwissBondTot.DomesticMarketInd. ZKBEURbonds SSgAEMUGovernmentBond(EGBI) IndexFund StateStreetGlobalAdvisors CSIFInflationlinkedBondEURexItaly CreditSuisseUSDbonds SSgATIPSIndexCTFUS StateStreetGlobalAdvisorsForeigncurrencybonds CSIFInflationlinkedBondWorldIndex CreditSuisseMortgageloans Mortgagestoinsurees PFSPensionFundServicesEquitiesSwitzerland CSIFTotalMarketIndexBlueSwitzerland CreditSuisse CIFSwissSmall&MidCapIndex ZKBEquitiesEurope SSgAMSCIIndexNLCTFEurope StateStreetGlobalAdvisorsEquitiesNorthAmerica SSgACanadaMSCINLCTF SSgAU.S.MSCINLCTF StateStreetGlobalAdvisorsEquitiesPacific SSgAAustraliaMSCINLCTF StateStreetGlobalAdvisors SSgAHongKongMSCINLCTF SSgAJapanMSCINLCTF SSgANewZealandNLMSCICTF SSgASingaporeMSCINLCTFEquitiesemergingmarkets StateStreetDailyActiveEmergingMarketsStateStreetGlobalAdvisors NLCTF SaraProInst.FundEmergingMarkets BankSarasin&Cie CIFEmergingMarketIndex ZKBEquitiesforeign HendersonGlobalCareGrowthFund HendersonGlobalInvestors(sustainable) OekoSarEquity-GlobalF BankSarasin&Cie SAMSmartEnergyFund SAMSustainableAsset ManagementAGRealestate Turidomusinvestmenttrust PensimoManagement CS1AImmoPKFonds CreditSuisseCommodities MorganStanleynoteslinkedtoabasket MorganStanley of commodity indices Pictet Solutions-GlobalCommodities Pictet&Cie

Newinvestmentsintheyearunderreviewincludedbondsin«ZKB-CIFSwissBondTotalMarketIndexDomestic»and«CSIFInflationlinkedBondWorldIndex»andequitiesin«ZKB-CIFSwissSmall&MidCapIndex»and«ZKB-CIFEmergingMarketsIndex»;inaddition,wetransferred«MoneyMarket»investmentsfromPictettoBankSyzand«SSgAActiveEmergingMarketsNL»and«SaraProEmergingMarkets»investmentstotheZKB.Wesoldourinvestmentsin«SSgAEMUGovernmentBondIndex»and«SSgAUSTIPSIndex».

Notes

34

6.2 Use of supplementary investment vehicles (Art. 50 (4) BVV2)Intheyearunderreview,thePVSdidnotmakeuseofanysupplementary investmentvehiclesasprovided for by BVV 2.

BVV2 restriction SAA Net share at BVV2 BVV2 weighting 31.12.2011 limit articleForeigncurrencies(withouthedging) 28% 23.0% 30% 55e

6.3 Target size and calculation of the fluctuation reserveFluctuationreservesareintendedtocushionapensionschemeagainstfluctuationsinthevalueofitsinvestments and to prevent it from becoming underfunded as a result of volatility.

Aspartofitscurrentinvestmentstrategy,thePVSdefinesexpectedreturnsandrisksonitsinvestmentsannually based on historical benchmark data and current return projections for each asset category. Therequisitefluctuationreserveiscalculatedaccordinglyas2%ofthe«valueatrisk»foratwo-yearperiod.Insettingthelevelofitsfluctuationreserve,thePVSalsopaysdueregardtothestructureandperformanceofthescheme’sactuarialcapitalandtheactuarialprovisionsrequired.Thesereservesare calculated according to the consistency principle and are revised annually.

ThePVS’sinvestmentstrategyfeaturesthefollowingcharacteristics:Characteristics of investment strategy 2011 2010Expectedreturn 4.2% 4.9%Historicalrisk(based on past 144 months) 6.2% 6.1%Two-year(previousyear:two-year)fluctuationreserverequiredasapercentageoftotalactuarialcapitalandtechnicalprovisions 19.5% 17.5%

Thecalculationoftherequiredfluctuationreserveincludes3.5%interestontheold-agesavingsofworkinginsurees(previousyear:3.5%)and3.5%interestonpensioncapital,andisbasedontheexpectedreturnafterdeductionofassumedassetmanagementcostsof0.3%.

Fluctuation reserve required 2011 2010 Change over prevoius year CHF CHF in CHFFluctuationreserveat1January 30096360 35509862 -5413502Creationoffluctuationreservethroughdeposit* 0 1715841 -1715841Releaseoffluctuationreservefrompartialliquidation -73191 0 -73191Transferfrom/tooperatingincomestatement -14277711 -7129343 -7148368Fluctuation reserve according to the balance sheet at 31 December 15 745 459 30 096 360 -14 350 901Fluctuation reserve required 120 103 688 103 670 469 16 433 219Shortfallinfluctuationreserve -104358229 -73574109 -30784120

*EqualtothedepositfromthepartialliquidationpaymentoftheGPSinaccordancewiththereso-lutionoftheBoardofTrusteesof6May2010.

Notes

35

6.4 Investments by asset categoryAsset category 31.12.2011 % of Target BVV2 31.12.2010 % of total range total CHF assets SAA Art. 55 CHF assetsNominalwerte 230 806 565 36.6% 37% 23-54% 100% 229 170 701 37.0%Liquidity 13338142 2.1% 2% 1-10% 24385874 3.9%Receivables 4136224 0.7% 0% 3684541 0.6%CHFbonds 85287907 13.5% 14% 10-17% 63671464 10.3%eUR bonds (incl. currency hedges) 37862379 6.0% 6% 4-8% 79662247 12.9%USDbonds(incl. currency hedges) 0 0.0% 0% 0% 29129549 4.7%Foreigncurrencybonds 62958801 10.0% 10% 6-13% 0 0.0%Mortgageloans 27223112 4.3% 5% 2-6% 28637026 4.6%

Equities 189 070 570 30.1% 32% 15-44% 50% 193 046 744 31.1%EquitiesSwitzerland 45157304 7.2% 7% 3-9% 31120006 5.0%EquitiesEurope 25018740 4.0% 4% 2-6% 40983861 6.6%EquitiesNorthAmerica(incl. currency hedges) 38357228 6.1% 7% 4-9% 39314454 6.3%EquitiesPacific 25124539 4.0% 4% 2-6% 34044895 5.5%Equitiesforeign(sustainable) 25363367 4.0% 5% 2-7% 28471787 4.6%Equitiesemergingmarkets 30049392 4.8% 5% 2-7% 19111741 3.1%

Non-traditional investments 31 886 562 5.1% 5% 2-15% 15% 33 845 987 5.5%Hedgefunds 0 0.0% 0% 0-4% 0 0.0%Privateequity 0 0.0% 0% 0-4% 0 0.0%Commodities (incl. currency hedges) 31886562 5.1% 5% 2-7% 33845987 5.5% Real estate 178 153 515 28.3% 26% 22-33% 30% 163 478 516 26.4%RealestateinSwitzerland 178153515 28.3% 26% 22-30% 163478516 26.4%Real estate outside Switzerland 0 0.0% 0% 0-3% 0 0.0% Total investments 629 917 212 100.0% 100.0% 619 541 948 100.0%

SAA=strategicassetallocation(investmentstrategy)The investment restrictions laid down in Arts. 54, 54a and 54b BVV2 were observed.

Currency 31.12.2011 % of total Targed 31.12.2010 % of total hedges CHF assets. SAA range CHF assets.Total 65 816 978 10.4% 8% 1-32% 85 471 789 13.8%EUR 18786328 3.0% 3% 0-11% 26214072 4.2%USD 47030650 7.5% 5% 1-16% 59257717 9.6%JPY 0 0.0% 0% 0-3% 0 0.0%GBP 0 0.0% 0% 0-2% 0 0.0%

As at 31 December 2011, there were no breaches of the target ranges.

Notes

36

6.4.1 MortgagesThemortgagesaremortgageloansgrantedbyPVStobeneficiaries.ThePVSgrantsfirstmortgagesonresidentialhousesandapartmentsinSwitzerlandwhichareoccupiedbytheborrowereitherallyearorfortheirownvacationpurposes.Mortgagescanbeobtainedforupto80%oftheproperty‘sdeclaredmarketvalue(or65%forvacationhomes),uptoamaximumofCHF750000.65%ofthemarket value of the mortgage loan must be amortised upon retirement.

ShouldaninsureeleavethePVSorelecttoreceivealloftheirretirementbenefitsintheformofalump-sumpayment,theymaycontinuetomaintaintheirPVSmortgageaccordingtothesametermsandconditions.Shouldthepropertyconcernedbesold,themortgageloanmustberepaidonthedateof the sale transaction.

ThePVSoffersvariable-ratemortgagesand three-orfive-yearfixed-ratemortgages.The interestrateforvariable-ratePVSmortgagesissetbytheBoardofTrusteesonthebasisofcurrentmarketconditions,andamountedto2.5%in2011(previousyear:2.5%).Theinterestratesforfixed-ratePVSmortgagesaredetermineddailyonthebasisofthethree-andfive-yearLIBORratesplusamarginof0.75%.

Theperformanceofthemortgageloanportfolioin2011wasasfollows:Mortgage loan portfolio Number CHF Number CHF 2011 2011 2010 2010At 1 January 86 28 637 026 94 32 276 026Newmortgage 1 170000 1 290000Mortgagesterminated -5 -1567914 -9 -3503000Increases 10 000 45 000Amortisations -26000 -471000At 31 December. 83* 27 223 112 86 28 637 026Ofwhichfixed-ratemortgages 46 15733937 28 10404000

* = One borrower divided his current mortgage into two separate tranches

Number of borrowers 2011 2010Working insurees 53 61Pension recipients 18 11Others 6 8At 31 December **77 **80 Average loan amount 54.6% 55.2%

**= four borrowers had two mortgage tranches, and two borrowers each had two mortgages (on two separate properties)

«Others»areformerbeneficiarieswho,aspermittedbythescheme’smortgageguidelines,havecontinuedtomaintaintheirPVSmortgagesafterleavingtheschemeorelectingtoreceivealltheirretirementbenefitsintheformofalump-sumpayment.

Notes

37

6.5 Open derivative financial instrumentsIn accordance with the current Investment Regulations, hedges are effected on assets held in foreign currencies. The following forward exchange contracts were open on the balance sheet dateForward foreign exchange Currency Amount in Contractual Current Gain/loss atcontracts for investments local forward rate/ forward rate/ 31.12.2011 currency value in CHF value in CHF in CHFSaleon7December2012 EUR 15500000 1.2207 1.2120EURbonds 18920075 18786328 133747Saleon7December2012 USD 15000000 0.9067 0.9313EquitiesNorthAmerica 13600500 13969500 -369000Saleon7December2012 USD 35500000 0.9067 0.9313Commodities 32187850 33061150 -873300Total open forward exchange contracts at 31.12.2011 64 708 425 65 816 978 -1 108 553

TheaboveforwardexchangecontractsarecoveredbyinvestmentsinEURbonds,USDequitiesandUSDcommoditiesnotesandwereconcludedviaCreditSuisse(asthecounterparty).

6.6 Explanation of net income from investment activitiesTheincomefromthePVS‘svariousinvestmentcategoriesisshownindetailintheoperatingincomestatement. Further details are provided below.

6.6.1 Detailed income from real estate Income in CHF Value in CHF Income in CHF Value in CHF 2011 at 31.12.2011 2010 at 31.12.2010Turidomus investment trust 13 732 493 153 973 515 10 451 760 139 019 516Casareal investment group 8 211 236 88 097 587 6 335 953 79 926 448ofwhichpurchased 3647023 5059994 Dividend 3687120 3310650 Change in net asset value 4 524 116 3 025 303 Proreal investment group 5 521 257 65 875 928 4 115 807 59 093 068of which purchased 4 092 191 0 Dividend 2 830 588 2 653 195 Change in net asset value 2 690 669 1 462 612 CS 1A Immo PK 706 800 24 180 000 467 800 24 459 000ofwhichpurchased 0 24977000 Dividend 985 800 985 800 Changeinnetassetvalue -279000 -518000 Total real estate 14 439 293 178 153 515 10 919 560 163 478 516

Thescheme‘srealestateassetsareindirectinvestmentsviatheTuridomusinvestmenttrust.Theseinvestments are divided into claims in the Casareal investment group (residential property) and claims in the Proreal investment group (business premises). The income consists of the dividends paidfortheyearunderreviewplus/minusthechangesintheassessmentofthenetassetvalue.

Notes

38

6.6.2 Detailed income from EUR bonds Income in Value in Income in Value in CHF CHF CHF CHF 2011 per 31.12.2011 2010 per 31.12.2010EUR bonds 2 044 137 37 862 379 -10 975 247 79 662 247(incl. currency hedges) NominalEURbonds 484515 0 -4450151 23677180Inflation-linkedEURbonds 1559622 37862379 -6525096 55985067

6.6.3 Detailed income from USD bonds Income in Value in Income in Value in CHF CHF CHF CHF 2011 per 31.12.2011 2010 per 31.12.2010USD bonds 3 547 792 0 214 611 29 129 549(incl. currency hedges)

NominalUSDbonds 0 0 231 0Inflation-linkedUSDbonds 3547792 0 214380 29129549

6.6.4 Overall investment performanceAccordingtoourcalculations,theoverallinvestmentperformancebyassetcategorywasasfollows:Net result from investments 2011 Perform. 2010 Perform. CHF in % CHF in %Nominal values 10 947 731 4.4% -7 689 339 -4.3%Liquidity -265310 -1.1% 72778 0.2%Receivables 0 0.0% 0 0.0%CHFbonds 4038221 6.0% 2214561 3.6%eUR bonds (incl. currency hedges) 2044137 2.5% -10975247 -13.5%USDbonds(incl. currency hedges) 3547792 12.1% 214611 -4.4%Foreigncurrencybonds 914412 1.8% 0 0.0%Mortgageloans 668479 2.4% 783958 2.6%

Equities (including income from securities lending) -19 857 004 -9.9% 1 147 894 -0.3%EquitiesSwitzerland -3022344 -8.7% 563094 1.5%EquitiesEurope -4562505 -10.8% -3223553 -6.8%EquitiesNorthAmerica(including currency hedges) 72187 0.8% 3007872 4.5%EquitiesPacific -4817898 -13.4% 1326507 4.5%Equitiesforeign(sustainable) -3032777 -10.6% -2162051 -7.7%Equitiesemergingmarkets -4493667 -22.0% 1636025 9.9%

Non-traditional investments 115 325 2.5% 3 952 341 2.5%Hedgefunds (including currency hedges) 0 0.0% 5399 0.0%Commodities (including currency hedges) 115325 2.5% 3946942 2.5% Real estate 14 439 293 8.6% 10 919 560 7.4%RealestateinSwitzerland 14439293 8.6% 10919560 7.4%

Total net result from investments 5 645 345 0.9% 8 330 456 1.5%

Notes

39

The performance was calculated using the time-weighted return (TWR) method and reported net (i.e. after deduction of the costs of indirect investments). The net result from currency hedges is shown in therelevant investmentcategories,but isnot included in theperformancefiguresuntil thesectionentitled «Total net result from investments».

6.7 Market values and contractual partners under securities lending agreementsInaccordancewiththecurrentpoolagreementwithStateStreet,thePVSmayparticipateinasecu-ritieslendingprogrammewithitsindexedequityandbondinvestments.ThesecuritiesarelentwithinStateStreet‘scommontrustfunds(lendingfunds),and60%or70%(dependingonthefund)oftheincomewhichStateStreetderivestherefromaccruestothePVS.ForthePVS’sequityinvestments,the income generated is reported and reinvested separately and is included in the performance of the assetcategoryconcerned.ForthePVS’sbondinvestments,theincomeisaddeddirectlytothefund,with no distribution or reinvestment.

Income from securities lending 2011 2010 Change over CHF CHF previous year Total income from securities lending 0 75 472 -75 472EquitiesSwitzerlandinvestmentfund 0 31276 -31276EquitiesEuropeinvestmentfund 0 41248 -41248EquitiesNorthAmericainvestmentfund 0 988 -988EquitiesPacificinvestmentfund 0 2063 -2063Equitiesemergingmarketsinvestmentfund 0 -103 103

InaccordancewiththeresolutionoftheBoardofTrusteesin2009,thePVStransferredtheseinvest-ments in their entirety into investments without securities lending in the course of 2010.

Theonlydiscrepancyistheinvestmentin«ZKB-CIFSwissBondTotalMarketIndexDomestic»,Cate-goryN,SwissSecurityNo.11704.507,whichpermitssecurities lendingwithin the fund.The fundstatement will close as of the end of February 2012. The fund manager informs us that bonds with a totalvalueofCHF5362745wereonloanasat31December2011,correspondingtoalendingrateof29.1%.

Notes

40

7 Notes on further balance sheet and operating income statement items

7.1 Balance sheet

Assets

7.1.1 Receivables from employerThisitemcontainstheemployer’scontributionsforDecemberandpartofNovember2011,whichwere paid until the middle of February 2012

7.1.2 Other receivables 31.12.2011 31.12.2010 CHF CHFRefundable withholding tax amounts 1 125 836 1 181 636Outstandinginterestownedonmortgageloans 16711 19726Total other receivables 1 142 547 1 201 362

Other receivables consist of refundable withholding tax amounts and outstanding interest owed on mortgageloans.TherefundablewithholdingtaxamountswerepaidinMarch2012.WiththeexceptionofCHF4200,theoutstandinginterestowedonmortgageloanswaspaidinJanuary2012.

7.1.3 Prepaid expenses and accrued income 31.12.2011 31.12.2010 CHF CHFPrepaidadministrationfeesforthefollowingyear 2600 2750Adjustments to contributions in 2011 12 012 0ProvisionfortheLOBGuaranteeFund 1030 1177Accrued income from investments 12 500 14 000Accruedincomefromrealestate 6517709 5963846Total prepaid expenses and accrued income 6 545 851 5 981 773

This item largely consists of the annual dividend from the Turidomus real estate investment trust, which was outstanding at year-end.

liabilities

7.1.4 Other liabilitiesThisitemcontainsvariousinvoicesforthefinancialyearwhichwerepaidinthefirstquarterof2012.

7.1.5 Accrued expenses and deferred incomeThis item consists mainly of the annual contribution still owed to the LOB Guarantee Fund at year-end, outstanding management fees, provisions for expenses incurred by the Board of Trustees, the residual reinsurancepremiumandexpensesforauditingandtheaccreditedpensionactuary’sreportsforthereporting year.

Notes

41

7.2 Operating income statement

7.2.1 One-off deposits and buy-in amounts 2011 2010 Change over CHF CHF previous yearEmployees‘voluntarydeposits 1635928 1089108 546820Employer‘sdeposits 0 43811 -43811Deposit of disability capital 0 31 685 -31 685Total one-off deposits and buy-in amounts 1 635 928 1 164 604 471 324

7.2.2 Home financing repayments and divorce-related deposits 2011 2010 Change over CHF CHF previous yearVoluntaryrepaymentsofhomefinancingwithdrawals 172367 728000 -555633Amountsreceivedthroughdivorcesettlements 1387332 928564 458768Total home financing repayments/divorce-related deposits 1 559 699 1 656 564 -96 865

Nineinsureesintotal(previousyear:nine)receivedashareoftheoccupationalold-agesavingsoftheir former spouses which were paid into their own old-age savings accounts as part of divorce settlements.Fourinsurees(previousyear:seven)madeavoluntaryrepaymentofPVSsavingsthathadpreviouslybeenwithdrawnforhomefinancingpurposes.

7.2.3 Child‘s pensions 2011 2010 Change over CHF CHF previous yearChild‘spensionsforthechildrenofold-agepensionrecipients 75941 71744 4197Orphans’pensions 50314 60990 -10676Child‘spensionsforthechildrenofdisabledpensionrecipients 33722 24363 9359Total Child‘s pensions 159 977 157 097 2 880

7.2.4 Home financing withdrawals/divorce-related payments 2011 2010 Change over CHF CHF previous yearWithdrawalsforhomefinancingpurposes 2924780 2266500 658280Old-age savings transferred out as part of divorce settlements 1 093 250 980 304 112 946Total home financing withdrawals/divorce-related payments 4 018 030 3 246 804 771 226

Atotalof23insurees(previousyear:25)madeuseoftheoptionallowingtheadvancewithdrawalofPVSold-agesavings forhomefinancingpurposes.Theaverageadvancewithdrawal forhomefinancingwasCHF127164(previousyear:CHF90660).

Atotalofteninsurees(previousyear:14)transferredpartoftheiroccupationalold-agesavingstotheoccupational pension schemes of their former spouses as part of divorce settlements.

Notes

42

7.2.5 Insurance expenses 2011 2010 Changes over CHF CHF previous yearPremiumstoinsurancecompany 1922475 0 1922475Brokerage fees 50 000 0 50 000ContributiontoLOBGuaranteeFund 131986 182293 -50307Total insurance expenses 2 104 461 182 293 1 922 168

7.2.6 Asset administration costs 2011 2010 Changes over CHF CHF previous yearGlobalcustodiancosts 19872 22703 -2831Investmentadvisorycosts 65476 67567 -2091Managementfees/bankfeesforindirectinvestments 289259 423421 -134162Stampduties 5120 29933 -24813Mortgagemanagementfees 30052 32689 -2637Total asset administration costs 409 779 576 313 -166 534

Nootherdirectassetmanagementcostswereincurred.InthecaseofthePVS‘sindirectinvestments,theassetmanagementcostsaregenerallydeductedfromthenetassetvalue(NAV).

AccordingtoArt.48a(3)BVV2,whichcameintoforceon1January2012,iftheassetmanagementcosts relating to one or several investments cannot be disclosed, the volume of assets contained in saidinvestmentsmustbeshownseparatelyinthenotestotheannualfinancialstatements.

Intheyearunderreview,thePVSinvestedinthefollowinginvestmentfunds,themanagementcostsof which could not be explicitly disclosed in the operating income statement. The Board of Trustees hasbeenmadeawareofthecosts(shownasapercentagefigure)associatedwiththesefunds,whichare charged directly to fund assets. The costs can be approximated as follows on the basis of the average invested assets.

Notes

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Fund 31.12.2011 31.12. 2010 Average Costs Costs CHF CHF CHF %* in CHFPictetMoneyMarketCHF 0 16403608 8201804 0.05% 4101SyzAMLiquidityMoneyMarketCHF 3517753 0 1758877 0.08% 1407SyzAMSwissGvtBondIndex–C2 19208848 17815029 18511939 0.0375% 6942SyzAMSwissBondIndex–C2 47650382 45856434 46753408 0.0375% 17533ZKB-CIFSwissBondTot.MarketIndexDomestic 18428677 0 9214339 0% 0CSIFInfl.LinkedBondWorldIndex–Z 62958801 0 1) 0% 0SSgAEMUGovernmentBondIndexFund 0 23319180 11659590 - 6786CSIFInfl.LinkedBondEURexItaly 37728632 55128799 46428716 0.084% 39000SSgATIPSIndexCTF 0 27707569 13853785 0.02% 2771CSIFTotalMarketIndex–blueZ 32909716 31120006 32014861 0.084% 26893ZKB-CIFSwissSmall&MidCapIndex 12247588 0 1) 0% 0SSgAMSCIIndexNLCTFEurope 25018740 40983861 33001301 0.04% 13201SSgAMSCINordAmerikaNLCTF 38726228 38407941 38567085 0.01% 3857SSgAMSCIPazifikNLCTF 25124539 34044895 29584717 0.04% 11834SaraProEmergingMarkets 0 8372247 4186124 0.49% 20512SSgAActiveEmergingMarketsNLCTF 0 10739495 5369748 0.115% 6175ZKB-CIFEmergingMarketIndexN 30049392 0 1) 0% 0HendersonGlobalCareGrowthFundI 12594279 10360054 11477167 1.47% 168715OekoSarEquity–GlobalF 12769088 13981637 13375363 1.41% 188593SAMSmartEnergyFundC 0 4130096 2065048 1.16% 23955TuridomusCasareal 88097587 79926448 84012018 0.34% 285641TuridomusProreal 65875928 59093068 62484498 0.26% 162460CS1AImmoPK 24180000 24459000 24319500 0.59% 143485MorganStanleyCommodityNotes 20557238 19954397 20255818 0.10% 20256Pictet(CH)Solutions-Inst.Commodity–J 12202623 12004260 12103442 0.56% 67780Total 1 221 897

*)Costs(in%)accordingtoinformationfurnishedbytheproviderortakenfromthefundfactsheets1) Purchase effected mid-December 2011

Thislistingisnotavailableforthepreviousyear.Thecosts(shownin%)arethetotalexpensesspecifiedbytheprovidersthatarechargedtofundassets.Therefore,atotalofCHF1631676indirectandindirect asset management costs were incurred during the period under review. This corresponds to 0.26%oftotalinvestmentsheldonthebalancesheetdate.

Notes

44

7.2.7 Other expenses 2011 2010 Changes over CHF CHF previous yearContributiontoSwissportCaseManagement 225000 225000 0Otherexpenses 519 1197 -678Total other expenses 225 519 226 197 -678

ThecontributiontoSwissportCaseManagementitemincludesPVS‘sshareoftheexpenditureincurredinthecasemanagementactivitiesofaffiliatedemployers.InaccordancewitharesolutionbytheBoardofTrusteesof12July2007,thePVScontributesCHF225000ayeartowardstheemployers’casemanagementexpenditure,subjecttothefollowingconditions:• thattheemployersaffiliatedwiththePVScommitthemselvestoatleastequivalentexpenditure• thattheemployers’casemanagementunitscompileanimplementationplanfortheuseof thePVS’scontribution

• thePVS’scontributioncommitmentappliesfortwoyears;itwasrenewedattheendof2009.

Thedetailsofthecasemanagementservicestobeprovidedwerespecifiedinaserviceagreementdated20November2007.ThePVS’scontributionisfinancedfromriskinsurancepremiums.ThePVS’sbeneficiarieswereinformedofthisdecision.

7.2.8 Administrative expenses 2011 2010 Changes over CHF CHF previous yearAuditors‘fees 47542 47001 541Accreditedpensionactuary‘sfees 40465 40111 354BoardofTrustees‘compensation,expensesandtrainingcosts 71919 71506 413PFSAGadministrativeexpenses 812475 820065 -7590Translationandprintingexpenses 49381 49087 294Retireeseminarexpenses 11497 6530 4967Supervisoryfees 4100 3000 1100Otheradministrativeexpenses 3068 722 2346Total administrative expenses 1 040 447 1 038 022 2 425

Basedonthe3642workinginsureesandpensionrecipients(notincludingchild’spensions)asat1January2011,thePVS’sadministrativeexpensesamountedtoCHF286perbeneficiaryin2010(previousyear:CHF294).

Notes

45

8 Stipulations of the supervisory authoritiesThePVSisnotcurrentlysubjecttoanyspecificstipulationsofthesupervisoryauthorities.Commentsandremarksmadebythesupervisoryauthoritiesweretakenintoaccountinthisyear‘sfinancialstate-ments.

9 Further information concerning the financial situation

9.1 RetrocessionsIntheyearunderreview,thePVSrequesteditsexternalassetmanagerstofurnishinformationonretrocessions received or paid as part of its duty of accountability and the duty of delivery in accordance withArt.400(1)oftheSwissCodeofObligations,theregulationonthehandoverofpecuniarygainsinaccordancewithArt.48kofBVV2(SwissFederalOrdinanceonOccupationalRetirement,Survivors‘andDisabilityPensionsPlans),aswellastherelevantrulingsoftheSwissFederalSupremeCourt(mostrecentlySwissFederalSupremeCourtruling137III393,dated29August2010).In the year under review, the external asset managers did not declare any retrocessions, or the latter were credited directly to the corresponding fund.

9.2 Pledged assetsThePVSmaintainsaCHF20000000creditfacilityagreementtocoverthemarginsonforwardforeignexchangecontractsconcludedviaCreditSuisse.AllthePVS’sassetsdepositedwithCreditSuisseare pledged in order to secure the credit limit

9.3 Audit by the Swiss Federal Tax Administration – Demand for repayment of withholding tax on SSgA‘s MSCI Switzerland Equities CTFThePVS receiveda letter from theSwissFederalTaxAdministrationdated25November2010demandingtherepaymentofwithholdingtaxfortheyears2007and2008whichPVShadreclaimedonSwissequitieswithintheMSCISwitzerlandEquitiesCTF.

ThePVSrepaidwithholdingtaxofCHF42276.84for2007and2008.Inaletterdated22December2010totheSwissFederalTaxAdministration,PVSstatedthatithadrepaidthereclaimedwithholdingtaxfor2007and2008inordertoavoidanyinterestpenalties,ortobenefitfromcreditinterest.ItalsowrotethatthepaymentdidnotrepresentrecognitionofthedemandmadebytheSFTAandthatthePVSreservestherighttoreclaimthiswithholdingtaxwithForm25withinthethree-yeardeadline.

ThePVSalsorequestedtheSFTAtoissueaformalorderasprovidedforbyArt.42oftheSwissFederalLawonWithholdingTaxfortherepaymentofwithholdingtaxfor2007and2008.

Inaletterdated26January2011,theSFTAadvisedusthatanumberofpensionfundswereinthesamepositionandthatatestcasewasbeingfiledagainstoneparticularscheme.TheletterstatedthatthePVSwouldreceivefurtherinformationdependingontheoutcomeofthislegalaction.ThecourtshaveyettoreachafinaldecisionandnoformalorderhasyetbeenreceivedfromtheSFTA.

Whatismore,thePVShasasserteditsrightforthereclaimofwithholdingtaxamountingtoCHF70831.26for2009,buthasaskedforreimbursementtobesuspendeduntilthematterhasbeenclarified.

Notes

46

9.4 Termination of affiliation agreement with Unitpool AG, KlotenAtitsmeetingof23November2010theBoardofTrusteesdecidedtoterminatePVS‘saffiliationagreementwithUnitpoolAG,Klotenasof31December2011becausethecommercialaffiliationasperArt.3.3ofthePVSDeedofTrustnolongerapplies.

Thecriteriaforapartialliquidationhavethusbeenfulfilled.TheBoardofTrusteeshasaskedtheexpert to perform the necessary calculations.

10 Events after the balance sheet date

None.

Notes

47

Personalvorsorge Swissport, Opfikon

Asstatutoryauditors,wehaveauditedthefinancialstatements(balancesheet,statementofincomeand expenditure and notes on pages 16 to 46), the management, the investments and the retirement accountsofthePersonalvorsorgeSwissportforcompliancewiththelegalprovisionsfortheyearen-ding 31 December 2011.

Thefinancialstatements,themanagementofthepensionfund,theinvestmentsandtheretirementaccounts are the responsibility of the board of trustees, whereas our responsibility is to express an opiniononthesematters.WeconfirmthatwemeetthelicensingandindependencerequirementsasstipulatedbySwisslaw.

OurauditwasconductedinaccordancewithSwissAuditingStandards,whichrequirethatanauditbeplannedandperformedtoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefree of material misstatement. We have examined on a test basis evidence supporting the amounts anddisclosuresinthefinancialstatements.Wehavealsoassessedtheaccountingprocessesandprinciplesapplied,theadherencetotheinvestmentrules,significantestimatesmadeandtheoverallfinancialstatementpresentation.Theauditof themanagementof thepension fundconsistsofanassessmentof theadherencetothelegalrequirementsandtothepensionfund‘sownregulationsregardingitsorganisation,administration,thecontributionsreceivedandbenefitspaidandaswellasthe provisions concerning loyalty of the asset management. We believe that our audit provides a reasonable basis for our opinion.

Inouropinion,thefinancialstatements,themanagementofthepensionfund,theinvestmentsandtheretirementaccountscomplywithSwisslawaswellasthepensionfund‘scharteroffoundationandregulations.

Werecommendthatthefinancialstatementssubmittedtoyoubeapproved.

KPMGAG

KurtGysin IvanoCastagnaLicensed Audit expert Licensed Audit expert

Zürich,10May2012

REPORT OF THE STATUTORY AUDITORS TO THE BOARD OF TRUSTEES OF THE

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