Auditoria

IFRS Demo Inc.
Financial Statements
For the Year Ended 31 December, 2007

Ca se W Cre ar a e® te d IF w RS ith Fi na nc ial s

IFRS Demo Inc.
For the Year Ended 31 December, 2007

CONTENTS

Ca se W Cre ar a e® te d IF w RS ith Fi na nc ial s

Page 1 2 3 4 5 7 8 9

Financial Statements Report of Auditors Reporting by Directors Statement by Directors Income Statement Balance SheetStatement Equity Statement of Cash Flows Notes to the Financial Statements

Report of Auditors IFRS Demo Inc. 145 Kent Street London, UK EF7U 8RF

To the Shareholders IFRS Demo Inc.

We have audited the accompanying balance sheet of IFRS Demo Inc. as of December 31, 2007, and the related statements of income, equity and cash flows for the year then ended. These financial statements are theresponsibility of the management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining,on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements give a true andfair view of (or 'present fairly, in all material respects,') the financial position of the Group as of December 31, 2007, and of the results of its operations and its cash flows for the year then ended in accordance with International Accounting Standards.

London, United Kingdom February 15, 2007

Ca se W Cre ar a e® te d IF w RS ith Fi na nc ial s
ABC Accountants Chartered Accountants

1IFRS Demo Inc.
Reporting by Directors 31 December, 2007

1.

Meetings of Directors

James Blank Mary Brown Joe Smith Kim Jones Steve Clark

Ca se W Cre ar a e® te d IF w RS ith Fi na nc ial s
Committee Meetings Directors' Meeting Audit Committee Nominating Committee Human Resources Committee 10 10 10 10 10 10 8 9 5 2 1 6 2 2 2 2 2 1 2 2 2 2 2 1 2 2 2 2 2 1 2 2 2

Eighteen meetingsof directors (including director committee meetings) were held during the year. The attendance by each director during the year was as follows:

Operating Committee

Number Number Number Number Number Number Number Number Number Number eligible attended eligible attended eligible attended eligible attended eligible attended to to to to to attend attend attend attend attend 2 2 1

JohnMcDonald

2

IFRS Demo Inc.

Statement by Directors

The Executive and Supervisory Boards have today discussed and adopted the annual report for 2007 of IFRS Demo Inc.. The financial statements have been prepared in accordance with International Accounting Standards. We consider the accounting policies applied to be appropriate. Accordingly, the financial statements give a true and fair view ofthe Group's assets, liabilities and financial position at December 31, 2007 as well as of the results of the Group's activities and the cash flows for the financial year ended December 31, 2007. The supplementary knowledge management report of IFRS Demo Inc. gives a true and fair view within the scope of the generally accepted guidelines for such reports. We recommend that the financialstatements be approved at the annual general meeting.

London, United Kingdom, February 15, 2007

Executive Board: James Blank

Ca se W Cre ar a e® te d IF w RS ith Fi na nc ial s
Mary Brown

3

IFRS Demo Inc.
Income Statement For the Year Ended 31 December, 2007 Parent 2007 In thousands of € Revenue - trading Cost of sales Note €
000's

Consolidated 2006
000's

2007
000's

2006...