REGISTERED NUMBER: 5607632 ABBREVIATED ACCOUNTS FOR THE PERIOD 31 OCTOBER 2005 TO 31 OCTOBER 2006 FOR SUPER AGURIF1 LIMITED AEN "ASOBHSST* Ast sri0arz007 COMPANIES House‘SUPER AGURI F1 LIMITED. CONTENTS OF THE ABBREVIATED ACCOUNTS For The Period 31 October 2005 to 31 October 2008 Page Company Information 1 Report of the Directors 2 Report of the Independent Auditors on the Abbreviated Accounts 4 Abbreviated Profit and Loss Account 5 Abbreviated Balance Sheet 6 Cash Flow Statement 7 Notes to the Cash Flow Statement 8 Notes to the Abbreviated Accounts 9SUPER AGURI F4 LIMITED COMPANY INFORMATION For The Period 31 October 2005 to 31 October 2008 DIRECTORS. A Suzuki W Humphreys D Audetto Klee SECRETARY W Humphreys REGISTERED OFFICE: Leafield Technical Centre Langley Witney Oxfordshire (0X29 SEF REGISTERED NUMBER: 19607632 Page 1SUPER AGURIF1 LIMITED REPORT OF THE DIRECTORS For The Period 31 October 2005 to 31 October 2006 The directors present their report with the accounts of the company for the penod 31 October 2005 to 31 October 2006 INCORPORATION The company was incorporated on 31 October 2005, PRINCIPAL ACTIVITY ‘The principle activity of the company was the running of a Formula 1 Grand Prix racing team REVIEW OF BUSINESS The results for the penod and financial position of the company are as shown in the annexed accounts The company was meorporated on 31st October 2005 and was set up to compete in the FIA Formula One ‘World Championship with Honda Motor Co Ltd as Technical partner and Engine supplier, and Agun Suzuki as Team Principal On 26th January 2006 the FIA accepted the team’s late entry for the 2006 Formula One World Championship, after Aguri Suzuki deposited $48,000,000 with the FIA in accordance with Formula ‘One regulations ‘The company leased premises at the Leafield Technical Centre, and set up the team to develop and run Formula One race cars to comply with the 2006 FIA technical regulations, ready for the first Grand Prix at Bahrain on the 12th March 2006 ‘Throughout 2006 the team has made significant performance improvements, which included replacing the ‘SA05 with the SAD6 race car at the German Grand Pnx on 30th July 2006 The team finished with its best results at the last race of the season, finishing in 10th and 16th position, and with 7th and Sth fastest lap times at the Brazilian Grand Prix on 22nd October 2006 2008 was a test and development year for the fledgling team, which operated with a minimum staffing level and budget, within incredibly short time scales Against all odds, through the hard work and incredible effort ‘rom all ofits staf, the team achieved amazing and incredible results n ts maugural year The Company looks forward to building on its successes during the 2006 season, and delivenng even stronger results on and off track next year DIVIDENDS No dividends will be distnbuted for the penod ended 31 October 2006 DIRECTORS The directors during the penod under review were A Suzuki ~ appointed 31 10 05 W Humphreys - appointed 26 1 06 D Audetto = appointed 26 1 06 Kee appointed 26 1 06 The beneficial interests of the directors hoiding office on 31 October 2006 in the issued share capital of the company were as follows 311006 at date of appointment Ordinary £1 shares ASuzuki 10 1 W Humphreys : D Audetto - - Klee - - All the directors, being eligible, offer themselves for election at the forthcoming first Annual General Meeting Page 2‘SUPER AGURIF4 LIMITED. REPORT OF THE DIRECTORS For The Period 31 October 2005 to 31 October 2006 ‘STATEMENT OF DIRECTORS’ RESPONSIBILITIES The directors are responsible for preparing the financial statements in accordance with applicable law and regulations Company law requires the directors to prepare financial statements for each financial year Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) The financial statements are required by law fo give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period In preparing these financial statements, the directors are required to = select suitable accounting policies and then apply them consistently, = make judgements and estimates that are reasonable and prudent, ~ prepare the financial statements on the gong concern basis unless it is inappropriate to presume that the company wili continue in business The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 1985 They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregulanties ‘STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS So far as the directors are aware, there 18 no relevant audit information (as defined by Section 234ZA of the Companies Act 7985) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit Information and to establish that the company's auditors are aware of that information AUDITORS ‘The auditors, James Cowper, will be proposed for re-appointment in accordance with Section 385 of the Companies Act 1985 ON BEHALF OF THE BOARD. Date 1S Se. ZQ07 Page 3REPORT OF THE INDEPENDENT AUDITORS TO SUPER AGURY F1 LIMITED UNDER SECTION 247B OF THE COMPANIES ACT 1985 We have examined the abbreviated accounts set out on pages five to thirteen, together with the financial statements of Super Aguri F1 Limited for the period ended 31 October 2006 prepared under Section 226 of the Companies Act 1985 ‘This report 1s made solely to the company, in accordance with Section 2478 of the Companies Act 1985 Our work has been undertaken so that we might state to the company those matters we are required to state to it im a special auditors' report and for no other purpose To the fullest extent permitted by taw, we do not accept ‘or assume responsibility to anyone other than the company, for our work, for this report, or for the opinions we have formed Respective responsibilities of directors and auditors ‘The directors are responsible for preparing the abbreviated accounts in accordance with Section 246A of the Companies Act 1985 It 1s our responsibilty to form an independent opinion as to whether the company 1s, entiied to deliver abbreviated accounts prepared in accordance with Section 246A(3) of the Act to the Registrar of Companies and whether the abbreviated accounts have been properly prepared in accordance with that provision and to report our opinion to you Basis of opinion We conducted our work in accordance with Bulletin 2006/3 “The Special Auditor's Report on Abbreviated ‘Accounts in the United Kingdom" issued by the Auditing Practices Board In accordance with that Bulletin we have carned out the procedures we consider necessary to confirm, by reference to the financial statements, that the company is entitled to deliver abbreviated accounts and that the abbreviated accounts to be delivered are properly prepared Opinion In our opinion the company 1s entitled to deliver abbreviated accounts prepared in accordance with Section 246A(3) of the Companies Act 1985, and the abbreviated accounts have been properly prepared in accordance with that provision James Cowper Registered Auditor and Chartered Accountants Buxton Court 3 West Way Batley Oxford 0x2 0B, Date IS WYME Qeo® Page 4SUPER AGURIF1 LIMITED ABBREVIATED PROFIT AND LOSS ACCOUNT For The Poriod 31 October 2005 to 31 October 2006 Notes g GROSS LOSS (3,041,189) Administrative expenses: 848,887 OPERATING LOSS 3 (6,890,076) Interest recewable and similar income 128,302 LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (6,761,774) Tax on loss on ordinary activities 4 (2,282,464) LOSS FOR THE FINANCIAL PERIOD AFTER TAXATION (4,479,310) CONTINUING OPERATIONS None of the company's activities were acquired or discontinued during the current period TOTAL RECOGNISED GAINS AND LOSSES ‘The company has no recognised gains or losses other than the loss for the current penod The notes form part of these abbreviated accounts Page 5SUPER AGURIF1 LIMITED ABBREVIATED BALANCE SHEET ‘31 October 2006 Notes £ £ FIXED ASSETS Tangible assets 5 2,788,227 CURRENT ASSETS Stocks 6 Debtors 7 Cash at bank 6,352,323 CREDITORS Amounts falling due within one year 8 9,104,670 NET CURRENT LIABILITIES (2,752,347) TOTAL ASSETS LESS CURRENT LIABILITIES 35,880 CREDITORS Amounts falling due after more than one year 9 4,515,180 NET LIABILITIES {4,478,300) CAPITAL AND RESERVES Called up share capital 2 10 Profit and oss account 8 (4,478,310) SHAREHOLDERS’ FUNDS 14 (4,478,300) These abbreviated accounts have been prepared in accordance with the special provisions of Part VIl of the Compames Act 1985 relating to medium-sized companies The financial statements were approved by the Board of Orectors on |S Tee 202 ang were signed on ils behalf by W Hump! ior ‘The notes form part of these abbreviated accounts Page 6SUPER AGURIF1 LIMITED ‘CASH FLOW STATEMENT For The Period 31 October 2005 to 31 October 2006 Notes £ Net cash inflow from operating activities 1 5,716,086 Returns on investments and servicing of finance 2 128,302 Capital expenditure 2 (3,256,831) 2,587,537 Financing 2 10 Increase in cash in the period 2,587,547 Reconciliation of net cash flow to movement in net debt 3 Increase in cash in the period 2,587,547 Change in net debt resulting from cash flows 2,587,547 Movement in not debt in the period 2,887,547 Net debt at 31 October Net funds at 31 October ‘The notes form part of these abbreviated accounts Page 7SUPER AGURIF1 LIMITED NOTES TO THE CASH FLOW STATEMENT For The Period 31 October 2005 to 31 October 2006 1 RECONCILIATION OF OPERATING LOSS TO NET CASH INFLOW FROM OPERATING ACTIVITIES £ Operating loss (6,890,076) Depreciation charges 487,987 Loss on disposal of fixed assets 617 Increase in stocks (54,794) Increase in debtors (1,427,518) Increase in creditors 13,619,850 Net cash inflow from operating activities 5,716,066 2 ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN THE CASH FLOW STATEMENT £ Returns on investments and servicing of finance Interest recewed 128,302 Net cash inflow for returns on investments and servicing of finance 128,302 Capital expenditure Purchase of tangible fixed assets (3,261,631) Sale of tangible fixed assets 4.800 Net cash outfiow for capital expenditure (3,256,831) Financing Share issue 40 ‘Net cash inflow from financing 40 3. ANALYSIS OF CHANGES IN NET DEBT At At 31.10.05 Cashflow 31.10.06 £ £ £ Net cash Cash at bank = 2587,547 _2,587,547 = 2,587,547 _2,587,547 Total > 2887.57 _2,587,547 The notes form part of these abbreviated accounts Pages‘SUPER AGURIF1 LIMITED NOTES TO THE ABBREVIATED ACCOUNTS: For The Period 31 October 2008 to 31 October 2006 1 ACCOUNTING POLICIES Basis of preparing the financial statements The financial statements have been prepared on a going concern basis as detailed in note 17 of the financial statements Accounting convention The financial statements have been prepared under the histoncal cost convention Turnover Tumover represents net invoiced sales of goods and services, sponsorship and other income, excluding value added tax Tangible fixed assets Depreciation 1s provided at the following annual rates in order to wnite off each asset over its estimated useful Ife Plant and machinery = 15-25% straight ine Fixtures and fittings ~ 33% straight line Motor vehicies. + 15-25% straight line Computer equipment = 33% straight ine ‘Stocks ‘Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items Cost includes all direct expenditure and an appropriate proportion of fixed and vanable overheads Deferred tax Deferred tax 1s recognised in respect of all timing differences that have originated but not reversed at the balance sheet date Research and development Expenditure on research and development is wntten off in the year in which itis incurred Foreign currencies Assets and habilties in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date Transactions in foreign currencies are translated into steriing at the rate of ‘exchange ruling at the date of transaction Exchange differences are taken into account in arnving at the operating result Pensions ‘The company operates a defined contribution pension scheme Contnbutons payable for the period are charged in the profit and loss account 2 STAFFCOSTS £ Wages and salaries 4,543,071 Social secunty costs, 420,300 Other pension costs 1,545, 964,916 ‘The average monthly number of employees during the period was as follows Intotal 83 Page 9 continuedSUPER AGURIF1 LIMITED NOTES TO THE ABBREVIATED ACCOUNTS - continued For The Period 31 October 2005 to 31 October 2006 3 OPERATING Loss The operating loss 1s stated after charging £ Depreciation - owned assets 467,987 Loss on disposal of fixed assets 617 ‘Auditors remuneration 8,000 Foreign exchange differences 178,856 Bad debts 4.935, Directors’ emoluments 4,455,554 Information regarding the highest paid director 1s as follows £ Emoluments etc 833,746 4 TAXATION Analysis of the tax credit The tax credit on the loss on ordinary activites for the period was as follows £ Current tax RAD tax credit (1,519,692) Deferred tax (762,772) Tax on loss on ordinary activities (2,282,464) Factors affecting the tax credit The tax assessed for the period 1s higher than the standard rate of corporation tax im the UK The difference 1s explained below £ Loss on ordinary actwities before tax 6,761,774) Loss on ordinary activites multiphed by the standard rate of corporation tax inthe UK of 30% (2,028,532) Effects of Expenses not deductible for tax purposes 8,950 Deduction for R&D expenditure (1,592,612) ‘Surrender of tax losses for RED tax credit refund 4,329,731 Capital allowances in excess of depreciation (239,698) Unrelieved tax losses and other deductions 4,002,469 Current tax credit (1,519,692) Page 10 continuedSUPER AGURIF1 LIMITED NOTES TO THE ABBREVIATED ACCOUNTS - continued For The Period 31 October 2005 to 31 October 2006 ‘TANGIBLE FIXED ASSETS Fottures Plant and and Motor Computer machinery fittings vehicles.» equipment Totals, & € £ £ £ cost Additions 1,866,643 45,311 643,799 705,878 3,261,631 Disposals : = (6,500) : (6,500) ‘At 31 October 2006 4,866,643 45.311 __637,299 __705,878 _3,255,131 DEPRECIATION ‘Charge for period 285,131 7,648 46,374 128,834 = 467,987 Eliminated on disposal : : (1,083) = 1,083) ‘At 31 October 2006 285,131 7.648 45,291 __ 128,834 __466,904 NET BOOK VALUE At31 October 2006 37,663 __592,008 __§77,044 _ 2,788,227 STOCKS £ ‘Work-in-progress, 4,794 Finished goods 50,000 54,794 DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR £ Trade debtors 328,702 Other debtors 504,035 Tax 1,519,692 Deferred tax asset 762,772 Prepayments and accrued income 504,781 3,709,982 CREDITORS AMOUNTS FALLING DUE WITHIN ONE YEAR £ Trade creditors 448,561 Social secunty and other taxes 260,030 Other creditors: 7,794 Accruals and deferred income 8,388,285 9,404,670 CREDITORS: AMOUNTS FALLING OUE AFTER MORE THAN ONE YEAR £ Accruals and deferred income 4,515,180 Page 11 continued‘SUPER AGURIF1 LIMITED 10 " 12 13 14 NOTES TO THE ABBREVIATED ACCOUNTS - continued For The Period 31 October 2005 to 31 October 2006 OPERATING LEASE COMMITMENTS: ‘The following operating lease payments are committed to be paid within one year Land and buildings £ Expiring Between one and five years 427,000 DEFERRED TAX £ Fixed asset timing differences, 239,698 Losses and other deductions (1,002,470) Balance at 31 October 2006 (762,772) CALLED UP SHARE CAPITAL ‘Authorised, allotted, issued and fully paid Number ‘Class Nominal value £ 10 Ordinary e 10 10 Ordinary shares of £1 each were allotted and fully paid for cash at par during the period RESERVES Profit and loss ‘account £ Deficit for the period (4,879,310) At 31 October 2006 (4,479,340) RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS’ FUNDS £ Loss for the financial period (4,473,310) Issue of shares at par 40 Net reduction of shareholders’ funds (4,479,300) ‘Opening shareholders’ funds : Closing shareholders’ funds (4,479,300) Equity interests (4,479,300) Page 12 continuedSUPER AGURI F1 LIMITED NOTES TO THE ABBREVIATED ACCOUNTS - continued For The Period 31 October 2005 to 31 October 2006 15 GOING CONCERN |n. common with many Formula 1 teams, the company 1s dependent on sponsorship income to enable it to operate throughout the racing season At the date of approval of the financial statements significant sponsorship agreements have been signed and others are in negotiation The directors are confident that these will enable the company to continue on the going concern basis Its therefore considered appropriate to prepare the financial statements on a going concer basis Should the directors be incorrect in their assumptions, adjustments would need to be made to reflect the break up value of the business and its assets Page 13