DB_ETC_plc_31.12.2022_01c

DB ETC plc

Directors' report and audited financial statements

For the year ended 31 December 2022

Registered number : 103781

DB ETC plc

Contents

Page (s)

Directors and other information 1

Directors' report 2- 5

Statement of Directors' responsibilities 6

Independent auditor's report 7 - 13

Statement of comprehensive income 14

Statement of financial position 15

Statement of changes in equity 16

Statement of cash flows 17

Notes to the financial statements 18 - 37

DB ETC plc

Page 1

Directors and other information

Directors

Marc Harris

Registered Office

4th Floor

St Paul's Gate

22-24 New Street

St Helier

Jersey JE1 4TR

Channel Islands

Company Secretary

Vistra Secretaries Limited

4th Floor

St Paul's Gate

22-24 New Street

St Helier

Jersey JE1 4TR

Channel Islands

Administrator

Vistra Fund Services Limited

4th Floor

St Paul's Gate

22-24 New Street

St Helier

Jersey JE1 4TR

Channel Islands

Determination Agent

Apex Fund Services (Ireland) Limited

2nd Floor

Block 5

Irish Life Centre

Abbey Street Lower

Dublin D01 P767

Ireland

Lead Authorised Participant, Arranger,

Deutsche Bank AG, London Branch

Issuing and Paying Agent, Programme

Winchester House

Counterparty and Metal Agent

1 Great Winchester Street

London EC2N 2DB

United Kingdom

JPMorgan Chase Bank, N.A. (“JPMorgan”), London Branch

25 Bank Street

Canary Wharf

London E14 5JP

United Kingdom

Note Trustee

Deutsche Trustee Company Limited

Winchester House

1 Great Winchester Street

London EC2N 2DB

United Kingdom

Independent Auditor

KPMG Channel Islands Limited

Chartered Accountants and Recognised Auditor

37 Esplanade

St Helier

Jersey JE4 8WQ

Channel Islands

Visdirect Services Limited

Viscom Services Limited

Secured and Subscription Account

Custodian

DB ETC plc

Page 2

Directors' report

Principal activities and business review

Key performance indicators

Maturity date CCY Nominal

Series 1 Xtrackers Physical Gold ETC 15-Jun-60 USD

499,814

Series 2 Xtrackers Physical Gold EUR hedged ETC 15-Jun-60

EUR 4,888,000

Series 4 Xtrackers Physical Silver EUR Hedged ETC 15-Jun-60

EUR 804,496

Series 6 Xtrackers Physical Platinum EUR Hedged ETC 14-Jul-60

EUR 433,326

Series 9 Xtrackers Physical Gold ETC (EUR) 27-Aug-60 USD

4,286,672

Series 10 Xtrackers Physical Silver ETC (EUR) 27-Aug-60 USD

222,925

Series 13 Xtrackers Physical Gold GBP Hedged ETC 01-Apr-61

GBP 2,688,600

the net fair value loss on financial liabilities designated at fair value through profit or loss amounted to EUR 226,481,155 (2021: net fair value

gain of EUR 247,933,647); and

there were additional subscriptions in the following existing Series of ETC Securities:

The directors (the "Directors") present the Directors' report and audited financial statements of DB ETC plc (the “Company”) for the year ended

31 December 2022.

The Company was incorporated on 06 August 2009 as a public limited liability company in Jersey under the Companies (Jersey) Law 1991 with

registration number 103781.

The principal activity of the Company, under the Secured ETC Precious Metal Securities Programme (the “Programme”), is to issue from time to

time series (each a "Series") of secured precious metal linked securities (the “ETC Securities”), where recourse in respect of each Series is limited

to the proceeds of enforcement of the security over each respective Series' assets.

The Directors confirm that the key performance indicators as disclosed below are those that are used to assess the performance of the Company.

the Company made a profit of EUR nil (2021: EUR nil);

the net fair value gain on Precious metals at fair value and Precious metal due from Deutsche Bank AG, London Branch (the "Programme

Counterparty") at fair value amounted to EUR 226,481,155 (2021: net fair value loss amounting to EUR 247,933,647);

With respect to each Series of ETC Securities, the Company’s main assets are its holdings of underlying Precious metals (the "Precious metals")

and its interests under the related balancing agreement (the ''Balancing Agreement''). The obligations of the Company under the ETC Securities of

a Series will be secured in favour of the Trustee by an assignment by way of security of all the Company’s rights, title, interest and benefit present

and future against the secured account custodian (the ''Secured Account Custodian''), the subscription account custodian (the ''Subscription

Account Custodian'') and any sub-custodian (the ''Sub-Custodian'') relating to the underlying metal in respect of this Series of ETC Securities.

The net proceeds from the issue of a Series of ETC Securities are used to purchase an amount of metal which, in accordance with the custody

agreement (the ''Custody Agreement'') for secured accounts will, to the extent possible, be allocated to physical metal bars or other metal shapes

and be held in the secured allocated account. Any remaining metal is held in the secured unallocated account. Such underlying metal is used to

meet the Company’s obligations under the relevant Series of ETC Securities and the relevant Balancing Agreement.

The ETC Securities issued are listed on various exchanges including London Stock Exchange, Swiss Stock Exchange, XETRA, Borsa Italiana

and Euronext Dublin.

The Company is a Special Purpose Vehicle (the ''SPV'') whose sole business is the issue of asset-backed securities. The Company has established

a programme for the issue of ETC Securities whose return is linked to the performance of a specified Precious metal: either gold, silver, platinum

or rhodium. Each series of ETC Securities will be separate (or ‘ring-fenced’) from each other series of ETC Securities. The best benchmark is the

price of the relevant metal in which the proceeds of the ETC Securities are invested in. For all Series, the performance closely follows the

movement in the metal linked to the Series.

During the year:

DB ETC plc

Page 3

Directors' report (continued)

Key performance indicators (continued)

During the year (continued):

Series Description

Maturity date CCY Nominal

Series 1 Xtrackers Physical Gold ETC 15-Jun-60

USD 1,100,700

Series 2 Xtrackers Physical Gold EUR hedged ETC 15-Jun-60

EUR 5,060,700

Series 4 Xtrackers Physical Silver EUR Hedged ETC 15-Jun-60

EUR 1,106,300

Series 6 Xtrackers Physical Platinum EUR Hedged ETC 14-Jul-60

EUR 2,002,339

Series 9 Xtrackers Physical Gold ETC (EUR) 27-Aug-60 USD

6,763,463

Series 10 Xtrackers Physical Silver ETC (EUR)

27-Aug-60

USD

3,513,575

Series 11 Xtrackers Physical Rhodium ETC

19-May-61

USD 1,253

Series 12 Xtrackers Physical Rhodium ETC (EUR) 19-May-61

EUR 1,651

Series 13 Xtrackers Physical Gold GBP Hedged ETC 01-Apr-61

GBP 15,435,300

the prices of Precious metals movement are as follows:

Series CCY

Price per ounce as

at 31 Dec 2022

Price per ounce as

at 31 Dec 2021

Movement (%)

Series 1 USD 1,812.35 1,820.10

(0.43)

Series 2

EUR 1,699.03 1,605.95

5.80

Series 4

EUR 22.42 20.39

9.95

Series 6

EUR 999.39 849.22

17.68

Series 9 USD 1,699.03 1,605.95

5.80

Series 10 USD 22.42 20.39

9.95

Series 11

USD 11,750.00 14,215.00

(17.34)

Series 12

EUR 10,998.78 12,541.91

(12.30)

Series 13

GBP 1,505.46 1,346.98

11.77

31-Dec-22 31-Dec-21

Movement (%)

in 31-Dec-22

USD - EUR 0.9341 0.8793

6.23%

GBP - EUR 1.1295 1.1893

-5.03%

the net assets were EUR 30,002 (2021: EUR 30,002).

the Company had the following ETC Securities in issue:

Series Description

Maturity date

Ccy

Metals held

1 Xtrackers Physical Gold ETC 15-Jun-60

USD

2,197,162 Gold

2 Xtrackers Physical Gold EUR hedged ETC 15-Jun-60

EUR

14,530,182 Gold

4 Xtrackers Physical Silver EUR Hedged ETC 15-Jun-60

EUR

912,000 Silver

6 Xtrackers Physical Platinum EUR Hedged ETC

14-Jul-60 EUR

827,598 Platinum

9 Xtrackers Physical Gold ETC (EUR)

27-Aug-60 USD

12,190,449 Gold

10 Xtrackers Physical Silver ETC (EUR)

27-Aug-60 USD

1,137,632 Silver

11 Xtrackers Physical Rhodium ETC 19-May-61

USD

73,060 Rhodium

12 Xtrackers Physical Rhodium ETC (EUR) 19-May-61

EUR

26,759 Rhodium

13 Xtrackers Physical Gold GBP Hedged ETC

01-Apr-61 GBP

2,931,903 Gold

The prices of the metals have mostly increased during the year. The movement in prices for Gold in GBP and for Platinum in EUR are mainly

due to exchange rates. The table below highlights the movement in foreign exchange during the year.

As at 31 December 2022:

the Company’s total ETC Securities issued had a fair value of EUR 4,556,219,740 (2021: EUR 5,903,037,311);

the Company has invested in Precious metals with a fair value of EUR 4,555,663,770 (2021: EUR 5,895,950,836);

Platinum

Gold

Silver

Rhodium

Gold

Silver

the following Series of ETC Securities were partially redeemed:

Precious

metals

Precious metals with a value of EUR 555,970 (2021: EUR 7,086,475) was due to the Company from the Programme Counterparty under the

terms of the Balancing Agreement; and

Nominal (in

units)

DB ETC plc

Page 4

Directors' report (continued)

Significant events

Reclassification of Statement of Cash flows

Series

ISIN

Series 1

GB00B5840F36

Series 2

DE000A1EK0G3

Series 6 DE000A1EK0H1

Series 9

DE000A1E0HR8

Series 13 GB00B68FL050

Future developments

Going concern

Russia- Ukraine conflict

On 1 December 2022, the Company informed Securityholders of the Series below that the Programme Counterparty determined to change the

metal fixing time for the scheduled valuation days on 24 and 31 December 2022.

Description

Xtrackers Physical Gold ETC

Xtrackers Physical Gold EUR Hedged ETC

Xtrackers Physical Platinum EUR Hedged ETC

Xtrackers Physical Gold ETC (EUR)

Xtrackers Physical Gold GBP Hedged ETC

The Directors believe that none of the Authorised Participants in the primary market are Russian entities and hence would not be subject to the

Russian sanctions. The Directors also assessed that none of the operations of the counterparties are based in Ukraine. The Directors will continue

to monitor the situation and appropriate steps will be taken for the smooth running of the Companies' business.

A high-level analysis was made on the liquidity and performance of the Company following the financial year end 31 December 2022. The

Directors note that there has been a positive change in the value of the Precious metals due to an increase in the prices of the Precious metals as

compared to the financial year end 31 December 2021 and the level of activity has remained stable post the financial year end. The Directors have

also noted that the Administrator has taken measures to ensure business continuity.

The Company’s financial statements for the year ended 31 December 2022 have been prepared on a going concern basis. Each Series of ETC

Securities is referenced to a specific asset and any loss derived from the asset will be ultimately borne by the relevant ETC Securityholders. The

Directors anticipate that assets are readily realisable and hence, will continue to generate enough cash flows on an ongoing basis to meet the

financial liabilities as they fall due. The ETC Securities in issue as at 31 December 2022 have final maturities ranging from 2060 to 2061. The

Directors do not foresee any material net redemptions in the next 12 months that would trigger going concern issues.

Russia began an invasion of Ukraine on 24 February 2022. The conflict has led to increased market price volatility in precious metals which is

reflected in the daily value per ETC Security. There is also a general increase in the bid/offer spread of our ETC securities quoted by third party

market makers on the secondary market as a consequence to increased volatility across the market. It is expected that prolonged conflict and

sanctions could affect the structural supply of metal and therefore the price of metal on the international market given Russia is a large producer

of gold, silver and platinum. On 7 March 2022, the London Bullion Market Association (the "LBMA") announced sanctions in respect to 6

Russian gold/silver refiners. Following the sanctions, the 6 refiners are no longer accepted as Good Delivery by LBMA. For precious metals,

sanctions are applied from the date of the sanction to bars refined from that point onwards. Anything refined prior to the sanctions date is still

considered “Good Delivery” and as such, can still be held by the Company. There is no impact on the ability of investors to redeem due to the

sanctions.

The reclassification is being disclosed in this financial year since no disclosure was made in the prior years. In the financial statements for the

year ended 31 December 2020, certain of the 2019 comparative amounts in the Statement of cash flows were reclassified as non-cash flow

disclosures. The disclosures mandated by paragraph 49 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, in respect of

the reclassification are as follows:

All transactions are made through physical exchange which means for any amount of ETC securities issued/disposed a corresponding amount of

metals will be exchanged. Therefore, there is no actual cashflow movement. Amounts previously presented as cashflows have been reclassified

and are now presented as non-cash transactions.

The Directors expect that the present level of activity will be sustained for the foreseeable future. The board of Directors of the Company (the

''Board'') will continue to seek new opportunities for the Company and will continue to ensure proper management of the current portfolio of

Series of the Company.

A notice was issued on 05 April 2022 to notify the Securityholders on the above mentioned reclassification.

Neither amounts for this financial year nor amounts for comparative 31 December 2021 were affected.

DB ETC plc

Page 5

Directors' report (continued)

Business risks and principal uncertainties

Climate risk

Results and dividends for the year

Changes in Directors, Secretary and Registered Office

Directors, Secretary and their interests

Shares and shareholders

Subsequent events

Subsequent events have been disclosed in note 21 to the financial statements.

Independent auditor

On behalf of the Board

Director

Date:

The Directors acknowledge that climate change is an emerging risk impacting the global economy and will continue to be of interest to all

stakeholders with a focus on how climate change is expected to impact the operations of the precious metals industry in areas such as mining,

processing, warehousing, transportation, societal response and the regulatory environment in the future. However, having considered such factors

relating to climate change, the Directors have determined that there are no direct or immediate impacts of climate change on the business

operations of the Company. Further details are provided in note 14 to the financial statements.

The results for the year are set out on page 14. The Directors do not recommend the payment of a dividend for the year under review (2021: nil).

In accordance with the Companies (Jersey) Law 1991, KPMG Channel Islands Limited, Chartered Accountants and Recognised Auditor has been

appointed to continue in office.

The Company is subject to various risks. The key risks facing the Company relate to their use of financial instruments and other risks (i.e. market

risk, credit risk, liquidity risk, operational risk and climate risk) arising from the Precious metals which are set out in note 14 to the financial

statements.

There has been no change in Directors, Secretary and Registered Office during the year.

None of the Directors or the Secretary who held office on 31 December 2022 held any shares or ETC Securities in the Company at that date, or

during the year. There were no contracts of any significance in relation to the business of the Company in which the Directors had any interest. As

disclosed in note 18, Related Party Transactions, Marc Harris, a director of the Company is an employee of an affiliate company of the

administrator and Visdirect Services Limited and Viscom Services Limited are affiliates of the administrator. See note 18 for full details of the

relationships entered into between the Company and its related parties.

The authorised share capital of the Company is GBP 10,000 divided into 10,000 limited shares of GBP 1 each (the "Shares") of which 2 are

issued and fully paid and are directly or indirectly held by Vistra Nominees I Limited and Vistra Nominees II Limited (the "Share Trustees")

under the terms of a declaration of trust (the "Declaration of Trust") under which the Share Trustees hold the benefit of the shares on trust for

charitable purposes. There are no other rights that pertain to the shares and the shareholders.

29 March 2023

DB ETC plc

Page 6

select suitable accounting policies and then apply them consistently;

make judgements and estimates that are reasonable, relevant and reliable;

We confirm that to the best of our knowledge:

On behalf of the Board

Director

Date:

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and

disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that its financial statements

comply with the Companies (Jersey) Law, 1991. They are responsible for such internal control as they determine is necessary to enable the

preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for

taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.

The Directors are also required by the Transparency (Directive 2004/109/EC) (Amendment) (No. 2) Regulations 2015 (the ''Regulations'') to

include a Directors’ Report containing a fair review of the business and a description of the principal risks and uncertainties facing the Company.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website.

Legislation in Jersey governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Responsibility statement of the Directors in respect of the Directors’ Report

Company law requires the Directors to prepare financial statements for each financial year. Under that law they are required to prepare the

financial statements in accordance with International Financial Reporting Standards as adopted by the EU and applicable law.

Under company law, the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the

state of affairs of the Company and of its profit or loss for that year. In preparing these financial statements, the Directors are required to:

state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial

statements;

Statement of Directors' responsibilities

The Directors are responsible for preparing the Directors’ Report and financial statements in accordance with applicable law and regulations.

the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets,

liabilities, financial position and profit or loss of the Company; and

the Directors’ report includes a fair review of the development and performance of the business and the position of the issuer, together with a

description of the principal risks and uncertainties that they face. The principal risks facing the Company are outlined in note 14 of the

financial statements.

We consider the annual report and accounts, taken as a whole, is fair, balanced and understandable and provides the information necessary for

shareholders to assess the Company’s position and performance, business model and strategy.

assess the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and

use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic

alternative but to do so.

29 March 2023

Independent Auditor's Report to the Members of DB ETC plc

Our opinion is unmodified

We have audited the financial statements of DB ETC plc (the “Company”), which comprise the statement of

financial position as at 31 December 2022, the statement of comprehensive income, changes in equity and cash

flows for the year then ended, and notes, comprising significant accounting policies and other explanatory

information.

In our opinion, the accompanying financial statements:

x give a true and fair view of the financial position of the Company as at 31 December 2022, and of the

Company’s financial performance and cash flows for the year then ended;

x are prepared in accordance with International Financial Reporting Standards as adopted by the EU; and

x have been properly prepared in accordance with the Companies (Jersey) Law, 1991.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable

law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are

independent of the Company in accordance with, UK ethical requirements including the FRC Ethical Standard as

required by the Crown Dependencies' Audit Rules and Guidance. We believe that the audit evidence we have

obtained is a sufficient and appropriate basis for our opinion.

Key audit matters: our assessment of the risks of material misstatement

Key audit matters are those matters that, in our professional judgment, were of most significance in the audit of

the financial statements and include the most significant assessed risks of material misstatement (whether or not

due to fraud) identified by us, including those which had the greatest effect on: the overall audit strategy; the

allocation of resources in the audit; and directing the efforts of the engagement team. These matters were

addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon,

and we do not provide a separate opinion on these matters. In arriving at our audit opinion above, the key

audit matters were as follows (unchanged from 2021):

The risk Our response

Valuation of precious metals at fair

value

Euro 4,555,663,770; (2021 Euro

5,895,950,836)

Refer to note 3(e) accounting policy

and note 9 disclosures

Basis:

Precious metals at fair value (the

“Metals”) represent 99.9% of the

Company’s total assets at 31

December 2022 (2021: 99.9%).

The Metals act as collateral for the

financial liabilities designated at

fair value through profit or loss

(“the ETC Securities”) issued by

the Company. The Metals are

accounted for at fair value.

The Company determines fair

value by revaluing the quantity of

Metals held at the reporting date to

the last market prices published by

Our audit procedures included:

•Assessed the design and

implementation of controls over

valuation of precious metals.

•Assessed the appropriateness of

the methodology used to value the

Exchange Traded Commodities

(“ETC”) Securities, and considered

whether it represents fair value in

accordance with IFRS.

•Performed an independent

recalculation of fair value based on

published market prices and

compared the recalculated values

to those determined by the

Company.

Independent Auditor's Report to the Members of DB ETC plc

(continued)

The risk Our response

the sources described in the

financial statements.

Risk:

The reported fair value of precious

metals held may be materially

misstated

•Assessed the fair value

disclosures in the financial

statements for compliance with

IFRS requirements.

The risk Our response

Existence of precious metals at fair

value

Euro 4,555,663,770; (2021 Euro

5,895,950,836)

Refer to note 3(e) accounting policy

and note 9 disclosures

Basis:

Precious metals at fair value (the

“Metals”) represent 99.9% of the

Company’s total assets at 31

December 2022 (31 December

2021: 99.9%).

The Metals act as collateral for the

financial liabilities designated at

fair value through profit or loss

(“the ETC Securities”) issued by

the Company. The Metals are

accounted for at fair value.

The Metals are held on behalf of

the Company by JPMorgan as

custodian (for all metals other than

Rhodium) and Johnson Matthey as

sub custodian (for Rhodium).

Risk:

Precious metals recorded do not

exist.

Our audit procedures included:

•Assessed the design and

implementation of controls over

existance of precious metals.

•Obtained a portfolio listing of

physical metals from the

administrator of the Company as at

31 December 2022.

•Obtained independent

confirmation from the custodians of

the quantity of metals held in

custody at the reporting date.

•Agreed the amounts per the

accounting records to the

independent custody records and

verified to support any reconciling

items.

The risk Our response

Valuation of financial liabilities

designated at fair value through

profit or loss (“ETC Securities”)

Basis:

The issuance of ETC Securities is

central to the Company’s principal

Our audit procedures included:

Independent Auditor's Report to the Members of DB ETC plc

(continued)

The risk Our response

Euro 4,556,219,740; (2021 Euro

5,903,037,311)

Refer to note 3(e) accounting policy

and note 11 disclosures

activity. ETC Securities allow

investors to gain exposure to

movements in prices of Metals

without needing to take physical

delivery.

ETC Securities are accounted for

at fair value.

The Company determines fair

value in accordance with the

formula set out in the prospectuses

to reflect the contractual price at

which the ETC Securities will be

issued or redeemed by the

Company at the reporting date.

This formula takes into account the

quantity of ETC Securities in issue

at the reporting date, and the price

of the relevant metals, adjusted for

product and related fees.

Risk:

A discrepancy in the inputs or

incorrect application of the formula

used to determine the fair value of

ETC Securities may cause the

reported fair value of financial

liabilities designated at fair value

through profit or loss to be

materially misstated.

•Assessed the design and

implementation of the controls over

the valuation of ETC Securities.

•Assessed the appropriateness of

the methodology used to value the

ETC Securities, and considered

whether it represents fair value in

accordance with IFRS.

•Recalculated the fair value of ETC

Securities using published market

data on Metals prices and compared

the recalculated values to those

determined by the Company.

•Assessed the fair value disclosures

in the financial statements, for

compliance with IFRS requirements

Our application of materiality and an overview of the scope of our audit

Materiality for the financial statements as a whole was set at Euro 45.6 million, determined with reference to a

benchmark of total assets of Euro 4,560,508,517, of which it represents approximately 1.0% (2021: 1.0%).

In line with our audit methodology, our procedures on individual account balances and disclosures were performed

to a lower threshold, performance materiality, so as to reduce to an acceptable level the risk that individually

immaterial misstatements in individual account balances add up to a material amount across the financial

statements as a whole. Performance materiality for the Company was set at 75% (2021: 75%) of materiality for the

financial statements as a whole, which equates to Euro 34.2 million. We applied this percentage in our

determination of performance materiality because we did not identify any factors indicating an elevated level of

risk.

We reported to the Audit Committee any corrected or uncorrected identified misstatements exceeding Euro 2.28

million, in addition to other identified misstatements that warranted reporting on qualitative grounds.

Independent Auditor's Report to the Members of DB ETC plc

(continued)

Our audit of the Company was undertaken to the materiality level specified above, which has informed our

identification of significant risks of material misstatement and the associated audit procedures performed in those

areas as detailed above.

Going concern

The directors have prepared the financial statements on the going concern basis as they do not intend to liquidate

the Company or to cease its operations, and as they have concluded that the Company's financial position means

that this is realistic. They have also concluded that there are no material uncertainties that could have cast

significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the

financial statements (the “going concern period").

In our evaluation of the directors' conclusions, we considered the inherent risks to the Company's business model

and analysed how those risks might affect the Company's financial resources or ability to continue operations over

the going concern period. The risks that we considered most likely to affect the Company's financial resources or

ability to continue operations over this period were:

x The Arranger’s requirement to continue using the Company; and

x The risk of securityholders redeeming a significant amount of the securities;

We considered whether this risk could plausibly affect the liquidity in the going concern period by comparing severe,

but plausible downside scenarios that could arise from this risk against the level of available financial resources

indicated by the Company’s financial forecasts.

We considered whether the going concern disclosure in note 2a to the financial statements gives a full and accurate

description of the directors' assessment of going concern.

Our conclusions based on this work:

x we consider that the directors' use of the going concern basis of accounting in the preparation of the financial

statements is appropriate;

x we have not identified, and concur with the directors' assessment that there is not, a material uncertainty

related to events or conditions that, individually or collectively, may cast significant doubt on the Company's

ability to continue as a going concern for the going concern period; and

x we found the going concern disclosure in the notes to the financial statements to be acceptable.

However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes

that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are

not a guarantee that the Company will continue in operation.

Fraud and breaches of laws and regulations – ability to detect

Identifying and responding to risks of material misstatement due to fraud

To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could

indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment

procedures included:

x enquiring of management as to the Company’s policies and procedures to prevent and detect fraud as well as

enquiring whether management have knowledge of any actual, suspected or alleged fraud;

x reading minutes of meetings of those charged with governance; and

x using analytical procedures to identify any unusual or unexpected relationships.

As required by auditing standards, we perform procedures to address the risk of management override of controls,

in particular the risk that management may be in a position to make inappropriate accounting entries. On this audit

we do not believe there is a fraud risk related to revenue recognition because the Company’s revenue streams are

Independent Auditor's Report to the Members of DB ETC plc

(continued)

simple in nature with respect to accounting policy choice, and are easily verifiable to external data sources or

agreements with little or no requirement for estimation from management. We did not identify any additional fraud

risks.

We performed procedures including

x Identifying journal entries and other adjustments to test based on risk criteria and comparing any identified

entries to supporting documentation; and

x incorporating an element of unpredictability in our audit procedures.

Identifying and responding to risks of material misstatement due to non-compliance with laws and

regulations

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the

financial statements from our sector experience and through discussion with management (as required by auditing

standards), and from inspection of the Company’s regulatory and legal correspondence, if any, and discussed with

management the policies and procedures regarding compliance with laws and regulations. As the Company is

regulated, our assessment of risks involved gaining an understanding of the control environment including the

entity’s procedures for complying with regulatory requirements.

The Company is subject to laws and regulations that directly affect the financial statements including financial

reporting legislation and taxation legislation and we assessed the extent of compliance with these laws and

regulations as part of our procedures on the related financial statement items.

The Company is subject to other laws and regulations where the consequences of non-compliance could have a

material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines

or litigation or impacts on the Company’s ability to operate. We identified financial services regulation as being the

area most likely to have such an effect, recognising the regulated nature of the Company’s activities and its legal

form. Auditing standards limit the required audit procedures to identify non-compliance with these laws and

regulations to enquiry of management and inspection of regulatory and legal correspondence, if any. Therefore, if

a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not

detect that breach.

Context of the ability of the audit to detect fraud or breaches of law or regulation

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some

material misstatements in the financial statements, even though we have properly planned and performed our audit

in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations

is from the events and transactions reflected in the financial statements, the less likely the inherently limited

procedures required by auditing standards would identify it.

In addition, as with any audit, there remains a higher risk of non-detection of fraud, as this may involve collusion,

forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are

designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and

cannot be expected to detect non-compliance with all laws and regulations.

Other information

The directors are responsible for the other information. The other information comprises the information included

in the annual report but does not include the financial statements and our auditor's report thereon. Our opinion on

the financial statements does not cover the other information and we do not express an audit opinion or any form

of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in

doing so, consider whether the other information is materially inconsistent with the financial statements or our

knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have

Independent Auditor's Report to the Members of DB ETC plc

(continued)

performed, we conclude that there is a material misstatement of this other information, we are required to report

that fact. We have nothing to report in this regard.

We have nothing to report on other matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies (Jersey) Law 1991 requires us

to report to you if, in our opinion:

x adequate accounting records have not been kept by the Company; or

x the Company's financial statements are not in agreement with the accounting records; or

x we have not received all the information and explanations we require for our audit.

Respective responsibilities

Directors' responsibilities

As explained more fully in their statement set out on page 6, the directors are responsible for: the preparation of

the financial statements including being satisfied that they give a true and fair view; such internal control as they

determine is necessary to enable the preparation of financial statements that are free from material misstatement,

whether due to fraud or error; assessing the Company’s ability to continue as a going concern, disclosing, as

applicable, matters related to going concern; and using the going concern basis of accounting unless they either

intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error, and to issue our opinion in an auditor’s report. Reasonable

assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance with ISAs

(UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are

considered material if, individually or in aggregate, they could reasonably be expected to influence the economic

decisions of users taken on the basis of the financial statements.

A fuller description of our responsibilities is provided on the FRC’s website at

www.frc.org.uk/auditorsresponsibilities

The purpose of this report and restrictions on its use by persons other than the Company's

members, as a body

This report is made solely to the Company’s members, as a body, in accordance with Article 113A of the Companies

(Jersey) Law 1991. Our audit work has been undertaken so that we might state to the Company’s members those

matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent

permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s

members, as a body, for our audit work, for this report, or for the opinions we have formed.

Report on Regulatory Requirements

European Single Electronic Format (ESEF)

The Company has prepared its annual report in ESEF. The requirements for this format are set out in the

Commission Delegated Regulation (EU) 2019/815 with regard to regulatory technical standards on the specification

of a single electronic reporting format (these requirements are hereinafter referred to as: the RTS on ESEF).

In our opinion, the annual report prepared in the XHTML format, including the financial statements as included in

the reporting package by the Company, has been prepared in all material respects in accordance with the RTS on

ESEF.

Independent Auditor's Report to the Members of DB ETC plc

(continued)

The directors are responsible for preparing the annual report including the financial statements in accordance with

the RTS on ESEF, whereby the directors combine the various components into a single reporting package. Our

responsibility is to obtain reasonable assurance for our opinion whether the annual report in this reporting package,

is in accordance with the RTS on ESEF.

Our procedures included amongst others:

x obtaining an understanding of the Company's financial reporting process, including the preparation of the

annual report in XHTML format;

x examining whether the annual report in XHTML-format is in accordance with the RTS on ESEF.

Brian Bethell

For and on behalf of KPMG Channel Islands Limited

Chartered Accountants and Recognized Auditors

Jersey

29 March 2023

DB ETC plc

Page 14

Statement of comprehensive income

For the year ended 31 December 2022

Year ended Year ended

31-Dec-22 31-Dec-21

Notes EUR EUR

4 226,481,155 (247,933,647)

(226,481,155) 247,933,647

Operating profit before taxation

6--

Net fair value gain/(loss) on Precious metals at fair value and Precious metal due

from the Programme Counterparty

Net fair value (loss)/gain on financial liabilities designated at fair value through

profit or loss

Taxation

Profit or loss and total comprehensive income for the year

The notes on pages 18 to 37 form an integral part of the financial statements.

DB ETC plc

Page 15

Statement of financial position

As at 31 December 2022

31-Dec-22 31-Dec-21

Notes EUR EUR

722

8 4,288,775 279,672

9 4,555,663,770 5,895,950,836

Precious metal due from the Programme Counterparty 9 555,970 7,086,475

4,560,508,517 5,903,316,985

Other payables 10 4,258,775 249,672

11 4,556,219,740 5,903,037,311

4,560,478,515 5,903,286,983

12 2 2

30,000 30,000

30,002 30,002

4,560,508,517 5,903,316,985

Director

Date:

Retained earnings

Total equity

Total liabilities and equity

The financial statements on pages 14 to 37 were approved by the Board and authorised for issue on……………………… 2023.

On behalf of the Board

Total assets

The notes on pages 18 to 37 form an integral part of the financial statements.

Liabilities and equity

Liabilities

Financial liabilities designated at fair value through profit or loss

Total liabilities

Equity

Share capital

Precious metals at fair value

Assets

Cash and cash equivalents

Other receivables

29 March

29 March 2023

DB ETC plc

Page 16

Statement of changes in equity

For the year ended 31 December 2022

EUR EUR EUR

2 30,000 30,002

---

2 30,000 30,002

Balance as at 01 January 2022 2 30,000 30,002

---

2 30,000 30,002

The notes on pages 18 to 37 form an integral part of the financial statements.

Total comprehensive income for the year

Balance as at 31 December 2021

Total comprehensive income for the year

Profit for the year

Total comprehensive income for the year

Balance as at 31 December 2022

capital

Retained

earnings

Total

equity

Balance as at 01 January 2021

Total comprehensive income for the year

Profit for the year

DB ETC plc

Page 17

Statement of cash flows

For the year ended 31 December 2022

Year ended Year ended

31-Dec-22 31-Dec-21

Notes EUR EUR

(4,009,103) (249,672)

4,009,103 249,672

722

Non-cash Transactions during the year include:

Issuance of ETC Securities

1,546,133,393 1,531,033,751

Redemptions of ETC Securities

(3,119,432,119) (4,191,509,216)

Additions of Precious metals

(1,546,133,393) (1,531,033,751)

Disposals of Precious metals

3,119,432,119 4,191,509,216

226,481,155 (247,933,647)

(226,481,155) 247,933,647

- -

Cash and cash equivalents at end of the year

Net fair value loss/(gain) on financial liabilities designated at fair value through

profit or loss

Net fair value (gain)/loss on Precious metals at fair value and Precious metal due

from the Programme Counterparty

The notes on pages 18 to 37 form an integral part of the financial statements.

Net cash generated from operating activities

Movement in cash and cash equivalents

Cash and cash equivalents at start of the year

Cash flows from operating activities

Profit before taxation

Adjustments for:

Increase in other receivables

Increase in other payables

DB ETC plc

Page 18

Notes to the financial statements

For the year ended 31 December 2022

1 General information

2 Basis of preparation

(a) Statement of compliance

Going concern

Russia- Ukraine conflict

A high-level analysis was made on the liquidity and performance of the Company following the financial year end 31 December

2022. The Directors note that there has been a positive change in the value of the Precious metals due to an increase in the prices

of the Precious metals as compared to the financial year end 31 December 2021 and the level of activity has remained stable post

the financial year end. The Directors have also noted that the Administrator has taken measures to ensure business continuity.

Russia began an invasion of Ukraine on 24 February 2022. The conflict has led to increased market price volatility in precious

metals which is reflected in the daily value per ETC Security. There is also a general increase in the bid/offer spread of our ETC

securities quoted by third party market makers on the secondary market as a consequence to increased volatility across the market.

It is expected that prolonged conflict and sanctions could affect the structural supply of metal and therefore the price of metal on

the international market given Russia is a large producer of gold, silver and platinum. On 7 March 2022, the London Bullion

Market Association (the "LBMA") announced sanctions in respect to 6 Russian gold/silver refiners. Following the sanctions, the 6

refiners are no longer accepted as Good Delivery by LBMA. For precious metals, sanctions are applied from the date of the

sanction to bars refined from that point onwards. Anything refined prior to the sanctions date is still considered “Good Delivery”

and as such, can still be held by the Company. There is no impact on the ability of investors to redeem due to the sanctions.

The Directors believe that none of the Authorised Participants in the primary market are Russian entities and hence would not be

subject to the Russian sanctions. The Directors also assessed that none of the operations of the counterparties are based in Ukraine.

The Directors will continue to monitor the situation and appropriate steps will be taken for the smooth running of the Companies'

business.

With respect to each Series of ETC Securities, the Company’s main assets are its holdings of underlying metal and its interests under the

Balancing Agreement. The obligations of the Company under the ETC Securities of a Series will be secured in favour of the Trustee by an

assignment by way of security of all the Company’s rights, title, interest and benefit present and future against the Secured Account

Custodian, the Subscription Account Custodian and any Sub-Custodian relating to the underlying metal in respect of this Series of ETC

Securities.

The net proceeds from the issue of a Series of ETC Securities are used to purchase an amount of metal which, in accordance with the Custody

Agreement for secured accounts will, to the extent possible, be allocated to physical metal bars or other metal shapes and be held in the

secured allocated account. Any remaining metal is held in the secured unallocated account. Such underlying metal is used to meet the

Company’s obligations under the relevant Series of ETC Securities and the relevant Balancing Agreement.

The ETC Securities issued are listed on various exchanges including London Stock Exchange, Swiss Stock Exchange, XETRA, Borsa

Italiana and Euronext Dublin.

The financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the

European Union ("IFRS") and in accordance with the Companies (Jersey) Law 1991.

The accounting policies set out below have been applied in preparing the financial statements for the year ended 31 December

2022; the comparative information for the year ended 31 December 2021 presented in these financial statements has been prepared

using the same accounting policies.

The Company’s financial statements for the year ended 31 December 2022 have been prepared on a going concern basis. Each

Series of ETC Securities is referenced to a specific asset and any loss derived from the asset will be ultimately borne by the

relevant ETC Securityholders. The Directors anticipate that assets are readily realisable and hence, will continue to generate

enough cash flows on an ongoing basis to meet the financial liabilities as they fall due. The ETC Securities in issue as at 31

December 2022 have final maturities ranging from 2060 to 2061. The Directors do not foresee any material net redemptions in the

next 12 months that would trigger going concern issues.

The Company was incorporated on 6 August 2009 as a public limited company in Jersey under the Companies (Jersey) Law 1991, as

amended, with company number 103781.

The principal activity of the Company, under the Programme, is to issue from time to time Series of the ETC Securities, where recourse in

respect of each Series is limited to the proceeds of enforcement of the security over each respective Series' assets.

DB ETC plc

Page 19

Notes to the financial statements (continued)

For the year ended 31 December 2022

Basis of preparation (continued)

(b) Basis of measurement

Precious metal due from the Programme Counterparty is measured at fair value;

Precious metals at fair value are measured at fair value; and

Financial liabilities designated at fair value through profit or loss are measured at fair value.

The method used to measure fair values are discussed further in note 3(e, f) and 15.

(d) Use of estimates and judgements

Critical judgements in applying the Company’s accounting policies

Determination of measurement basis for precious metals

Determination of fair value of financial liabilities issued at fair value through profit or loss

Product fees

In the absence of a specific precious metals or gold bullion accounting standard under IFRS, the Directors believe that the most

appropriate basis for accounting for precious metals and gold bullion is at fair value. Please refer to note 3(e) “Precious metals at

fair value and Precious metals due from the Programme Counterparty” for further details.

The financial liabilities designated at fair value through profit or loss are measured using the prices calculated by Apex Fund

Services (Ireland) Limited (the "Determination Agent"), and not based on the quoted secondary price available on the recognised

stock exchanges for the financial liabilities at fair value through profit and loss. In the opinion of the Directors, this is the most

appropriate method of estimating fair value, as the Company is contractually obliged to settle the ETC Securities at their calculated

price. Please refer to note 3(f) “Financial instruments” for further details.

The product fees are borne by investors through a daily reduction in the metal entitlement of each ETC Security. Accordingly, the

product fees form an integral component of the determination of the daily fair values of the ETC Securities, and are not separately

accounted for as an expense of the Company. Please refer to note 3(f) “Financial instruments” for further details.

The financial statements have been prepared on the historical cost basis except for the following material items in the Statement of

financial position:

Functional currency is the currency of the primary economic environment in which the entity operates. The Company does not have

an investment strategy limited to one currency, as such the currency of the assets held and Notes in issue is expected to change

periodically as a result of investor demand. The Directors believe that the functional and the presentation currency should be EUR,

in line with prior year, as EUR is the currency that most faithfully represents the economic effects of the transactions, events and

conditions of the Company's underlying operations.

The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and

assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income and expenses.

The estimates and associated assumptions are based on historical experience and various other factors that are believed to be

reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets

and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in

the period in which the estimates are revised and in any future periods affected. Details of material judgements and estimates have

been further described in accounting policy note 3(e) "Precious metals at fair value and Precious metal due from the Programme

Counterparty", note 3(f) “Financial instruments” and note 15 "Fair Values" to the financial statements.

The following are the critical judgements, apart from those involving estimations (which are presented separately below), that the

Directors have made in the process of applying the Company’s accounting policies and that have the most significant effect on the

amounts recognised in financial statements.

DB ETC plc

Page 20

Notes to the financial statements (continued)

For the year ended 31 December 2022

Basis of preparation (continued)

(d) Use of estimates and judgements (continued)

Key sources of estimation uncertainty

Precious metals at fair value and Precious metal due from the Programme Counterparty

(e) Changes in accounting standards

(i)

Effective date

1 January 2022*

2018-20 Annual Improvements and Onerous Contracts

1 January 2022*

(ii)

Effective date

1 January 2023*

Amendments to IAS 12 Income Taxes

1 January 2023*

Amendments to IFRS 17 Insurance contracts

1 January 2023*

1 January 2024**

** Not endorsed.

Directors have considered the new standards, amendments and interpretations as detailed in the above table and do not

plan to adopt these standards early. The Directors anticipate that the adoption of those standards or interpretations will

have no material impact on the financial statements of the Company in the period of initial application.

Standards not yet effective, but available for early adoption

Description

Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors

Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure

of Accounting policies

Amendments to IAS 1 Presentation of Financial Statements: Amendments regarding the classification

of liabilities

*Where new requirements are endorsed, the EU effective date is disclosed. For un-endorsed standards and interpretations,

the IASB’s effective date is noted. Where any of the requirements are applicable to the Company, it will apply them from

their EU effective date.

The Directors have determined that prices calculated by the Determination Agent are used as the measurement basis at 31

December 2022 and 31 December 2021 as these prices most accurately reflect the obligations of the Company under the terms of

the Series issue deeds. Please refer to note 3(f) “Financial instruments” for further details.

New standards, amendments and interpretations issued effective as of 01 January 2022:

Description

The Directors have considered the impact of the new standards, amendments and interpretations and do not consider there

to be a significant impact from these newly effective standards, amendments and interpretations.

IAS 16: Property Plant and Equipment: Proceeds before Intended Use

Amendments to IFRS 3 Business Combinations

Amendments to IFRS 4 Insurance Contracts

The key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting period that may have a

significant risk of causing a material adjustment to the carrying amounts of Precious metals and liabilities within the next financial

year, are discussed below.

The Directors have determined that the main estimates are in relation to the determination of the fair value of Precious metals at

fair value and Precious metal due from the Programme Counterparty using prices quoted by the London Bullion Market

Association. Further details have been described in accounting policy note 3(e) "Precious metals at fair value and Precious metal

due from the Programme Counterparty" to the financial statements.

Financial liabilities issued at fair value through profit or loss

DB ETC plc

Page 21

Notes to the financial statements (continued)

For the year ended 31 December 2022

3 Significant accounting policies

(a) Foreign currency transactions

(b) Net fair value gain/(loss) on Precious metals at fair value and Precious metal due from the Programme Counterparty

(d) Other expenses

(e) Precious metals at fair value and Precious metal due from the Programme Counterparty

Initial recognition

The Precious metal is recognised when the metal is received into the vault of the Custodian.

Derecognition

Transactions in foreign currencies are translated into the functional currency at the date of the transactions. Monetary assets and

liabilities denominated in foreign currencies at the reporting date are retranslated into the functional currency at the exchange rate

at that date.

Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated into the

functional currency at the exchange rate at the date that the fair value was determined. Non-monetary items in a foreign currency

that are measured in terms of historical cost are translated using the exchange rate at the date of the transaction. Foreign currency

differences arising on retranslation are recognised in the Statement of comprehensive income.

Gains and losses arising on retranslation of financial liabilities designated at fair value through profit or loss and Precious metals at

fair value are included in the Statement of comprehensive income together with fair value gains and losses as noted below.

Net fair value gain/(loss) on Precious metal relates to the movement in the prices of metals and includes all realised and unrealised

fair value changes and foreign exchange differences. Any gains and losses arising from changes in fair value of Precious metals

and changes in fair value of Precious metals due from the Programme Counterparty are recorded in net fair value gain on Precious

metals at fair value and Precious metals due from the Programme Counterparty at fair value in the Statement of comprehensive

income. Under normal circumstances, there is no realised gain on metals as realisation occurs at the value computed and there is no

difference between realisation proceeds and carrying amount of the metals. Details of recognition and measurement of Precious

metals are disclosed in the accounting policy for Precious metals (note 3(e)).

Net fair value (loss)/gain on financial liabilities designated at fair value through profit or loss relates to ETC Securities issued by

the Company and includes all realised and unrealised fair value changes and foreign exchange differences. Any gains and losses

arising from changes in the fair value of the financial liabilities designated at fair value through profit or loss are recorded in net

fair value loss on ETC Securities in the Statement of comprehensive income. Details of recognition and measurement of financial

liabilities are disclosed in the accounting policy of financial instruments (note 3(f)).

All expenses, other than product fees recorded as a reduction in metal entitlement, are paid by the Arranger and as such, are not

reflected in these financial statements. Product fees are recorded as a reduction in metal entitlement in calculation of the fair value

of the ETC Securities.

The Company holds Precious metals at least equal to the amount due to holders of ETC Securities solely for the purposes of

meeting its obligations under the ETC Securities.

The Precious metals are measured at fair value and changes in fair value are recognised in the Statement of Comprehensive

Income. Any costs to sell precious metal that arise in the course of settlingtheCompany’s obligations under the ETC Securities are

borne by the holders of the ETC Securities (“ETC Securityholders”).

The Company derecognises Precious metals held at fair value when the contractual rights to the asset have expired, or the

Company has transferred the rights to the asset in a transaction in which substantially all the risks and rewards of ownership are

transferred.

DB ETC plc

Page 22

Notes to the financial statements (continued)

For the year ended 31 December 2022

Significant accounting policies (continued)

(e) Precious metals at fair value and Precious metal due from the Programme Counterparty (continued)

Fair value measurement principles

The metal assets are valued using the appropriate metal prices:

Precious metals due from Programme Counterparty

(f) Financial instruments

Initial recognition

Classification

Accordingly, the financial assets and financial liabilities are classified into the following categories:

Financial assets at fair value through profit or loss:

Precious metals at fair value

Precious metals due from the Programme Counterparty

Financial liabilities at fair value through profit or loss:

Financial liabilities designated at fair value through profit or loss

Financial assets at amortised cost:

Cash and cash equivalents and other receivables

Financial liabilities at amortised cost:

Other payables

Financial assets and financial liabilities are recognised initially at the trade date at which the Company becomes a party to the

contractual provisions of the instrument and are measured initially at fair value plus, for an item not at fair value through profit or

loss, transaction costs that are directly attributable to their acquisition or issue.

the platinum is recorded at fair value using the last available price, nearest or at year-end, quoted by the London Platinum

and Palladium Market. The AM fix on 30 December 2022 was used to value the platinum as this was the last available fix

price available from the London Platinum and Palladium Market for the year.

the palladium is recorded at fair value using the last available price, nearest or at year-end, quoted by the London Platinum

and Palladium Market.

the rhodium is recorded at fair value using the last available price, nearest or at year-end, quoted by Comdaq. The fix on

30 December 2022 was used to value the rhodium as this was the last fix price available from Comdaq for the year.

The metal prices derived from the above sources are then adjusted for product fees charged at 0.25% to 0.95% per annum of metal

entitlement and any purchase or sale transactions between the Observation Date (as defined in the Master Balancing Terms) and

the year end date. The product fees are accrued on a daily basis.

The valuation of metal assets held at fair value in the Statement of financial position is calculated after taking account of

adjustments to the Company’s metal entitlement arising from the accrual of product fees and other rebalancing adjustments,

consistent with the Balancing Agreements which are in place for each Series.

The Precious metals due from the Programme Counterparty represents the amount of metal entitlement of ETC Securities which is

not held physically by the custodian / sub custodian on behalf of the Company as at the reporting date but is due to be received

from the Programme Counterparty under the Balancing Agreement. Precious metals due from the Programme Counterparty are

accounted for at fair value through profit or loss.

The Company has designated the debt financial liabilities issued at fair value through profit or loss. For other financial instruments,

the classification is based on both the Company's business model for managing those Instruments and the contractual cash flow

characteristics of the instruments.

the gold is recorded at fair value using the last available price, nearest or at year-end, quoted by the London Bullion

Market Association. The morning ("AM") fix on 30 December 2022 was used to value the gold as this was the last fix

price available from the London Bullion Market Association for the year.

the silver is recorded at fair value using the last available price, nearest or at year-end, quoted by the London Bullion

Market Association. The fix on 30 December 2022 was used to value the silver as this was the last fix price available from

the London Bullion Market Association for the year.

DB ETC plc

Page 23

Notes to the financial statements (continued)

For the year ended 31 December 2022

3 Significant accounting policies (continued)

(f) Financial instruments (continued)

Subsequent measurement

Derecognition

Offsetting

(g) Other receivables

(h) Cash and cash equivalents

(i) Share capital

(j) Segment reporting

Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when,

the Company has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the

liability simultaneously.

Other receivables are accounted for at amortised cost.

Cash and cash equivalents include deposits held at call with the cash custodian which are subject to insignificant risk of changes in

their fair value, and are used by the Company in the management of its short term commitments.

Share capital is issued in Pound Sterling ("GBP"). Incremental costs directly attributable to the issue of new shares are shown in

equity as a deduction from the proceeds.

An operating segment is a component of an entity that engages in business activities from which it may earn revenues and incur

expenses (including revenues and expenses relating to transactions with other components of the same entity). The Chief Operating

Decision Maker (CODM) of the operating segment is the Board. The CODM is responsible for all the Company’s activities. The

Company is a special purpose vehicle whose principal activities are the issuance of secured precious metal linked securities and

has invested in precious metals. The Board believes that each Series can be treated as a segment as the return on each Series is

linked to a different precious metal. Refer to notes 10 and 11 for the fair values of the precious metals and ETC securities by

Series.

After initial measurement, the instruments at amortised cost are recorded at the amount at initial recognition, minus principal

repayments, plus or minus the cumulative amortisation using the effective interest rate method or any difference between the initial

amount recognised and the maturity amount, minus any reduction for impairment. The effective interest method is a method of

calculating the amortised cost of an instrument and of allocating interest over the relevant period. The effective interest rate is the

rate that exactly discounts estimated future cash flows (including all fees paid or received that form an integral part of the effective

interest rate, transaction costs and other premiums or discounts) through the expected life of the instrument, or, where appropriate,

a shorter period, to the net carrying amount on initial recognition. Impairment losses, including reversals of impairment losses and

impairment gains, are presented in the Statement of comprehensive income.

Financial liabilities designated at fair value through profit and loss are measured using the prices calculated by Apex Fund

Services (Ireland) Limited (the "Determination Agent"). Quoted prices are also available on recognised stock exchanges for the

financial liabilities designated at fair value through profit or loss. However, the Directors have determined that prices calculated by

the Determination Agent should be used as a measurement basis at 31 December 2022 and 31 December 2021 as these prices most

accurately reflect the obligations of the Company under the terms of the Series Issue Deeds. The prices are calculated using the

spot price of the relevant underlying metal adjusted for product fees. The product fees range from 0.25% to 0.95% per annum and

are accrued on a daily basis by reducing the metal entitlement of each ETC Security. Details of product fees for each Series is

described in notes 5 and 11.

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the

rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of

ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the

Company is recognised as a separate asset or liability. The Company derecognises a financial liability when its contractual

obligations are discharged, cancelled or expire.

DB ETC plc

Page 24

Notes to the financial statements (continued)

For the year ended 31 December 2022

Year ended

31-Dec-22

31-Dec-21

EUR

226,481,155 (247,933,647)

Year ended

31-Dec-22

31-Dec-21

EUR

Net fair value (loss)/gain on ETC Securities

(226,481,155) 247,933,647

Series

Description Year ended Year ended

31-Dec-22

31-Dec-21

EUR

Series 1

Xtrackers Physical Gold ETC

1,060,565 1,505,561

Series 2

Xtrackers Physical Gold EUR hedged ETC

10,408,727 13,046,887

Series 3

Xtrackers Physical Silver ETC

- 128,180

Series 4

Xtrackers Physical Silver EUR Hedged ETC

973,062 1,382,573

Series 5

Xtrackers Physical Platinum ETC

- 111,804

Series 6

Xtrackers Physical Platinum EUR Hedged ETC

503,427 1,208,622

Series 7

Xtrackers Physical Palladium ETC

- 28,136

Series 8

Xtrackers Physical Palladium EUR Hedged ETC

- 155,048

Series 9

Xtrackers Physical Gold ETC (EUR)

5,531,201 6,202,683

Series 10

Xtrackers Physical Silver ETC (EUR)

1,580,269 3,858,041

Series 11 Xtrackers Physical Rhodium ETC

904,397 1,207,446

Series 12 Xtrackers Physical Rhodium ETC (EUR) 336,143 455,547

Series 13 Xtrackers Physical Gold GBP Hedged ETC 682,369 726,625

21,980,160 30,017,153

31-Dec-22 31-Dec-21

EUR EUR

Cash at bank

Cash and cash equivalents

Net fair value gain/(loss) on Precious metals at fair value and Precious metal due from the Programme

Counterparty

Net fair value (loss)/gain on financial liabilities designated at fair value through profit or loss

Product fees are recorded as a reduction in metal entitlement in calculation of the fair value of the ETC Securities and hence not recorded

separately in the statement of comprehensive income as they are all included in the net fair value (loss)/gain on the financial liabilities. During

the year, the Company incurred the following product fees:

Taxation

The Company is not a regulated financial service company from a Jersey Income Tax perspective. Therefore, the Company is liable to Jersey

Income Tax at 0%.

Net fair value gain/(loss) on Precious metals at fair value and Precious metal due from the

Programme Counterparty

DB ETC plc

Page 25

Notes to the financial statements (continued)

For the year ended 31 December 2022

31-Dec-22 31-Dec-21

EUR EUR

Other receivable

30,000 30,000

Precious metal receivables*

4,258,775 249,672

4,288,775 279,672

31-Dec-22 31-Dec-21

EUR EUR

4,555,663,770 5,895,950,836

Precious metal due from the Programme Counterparty

555,970 7,086,475

4,556,219,740 5,903,037,311

31-Dec-22 31-Dec-21

EUR EUR

5,903,037,311 8,811,446,423

Non-cash transactions

1,546,133,393 1,531,033,751

Disposals during the year

(3,119,432,119) (4,191,509,216)

226,481,155 (247,933,647)

4,556,219,740 5,903,037,311

Metals Currency

Fair value Fair value

CCY

EUR

Series 1 Gold USD

212,259 1,812.14 384,642,988 359,295,015

Series 2 Gold EUR

968,502 1,699.03 1,645,511,746 1,645,511,746

Series 4 Silver EUR

5,654,739 22.44 126,882,467 126,882,467

Series 6 Platinum EUR

51,151 998.73 51,085,623 51,085,623

Series 9 Gold USD

1,178,355 1,698.84 2,143,064,536 2,001,836,583

Series 10 Silver USD

10,785,428 22.42 258,863,098 241,804,020

Series 11 Rhodium USD

6,528 11,756.98 76,749,877 71,692,060

Series 12 Rhodium EUR

2,394 10,992.51 26,313,253 26,313,253

Series 13 Gold GBP

19,266 1,461.27 28,153,141 31,798,973

4,556,219,740

The fair values of the Precious Metal by Series as at 31 December 2022 are as follows:

Series

name

Total Metal

holdings (Ounce)

Adjusted Price per

ounce

Movement in Precious metals at fair value

At beginning of the year

Additions during the year

Net changes in fair value during the year

At end of the year

Precious metal due from the Programme Counterparty represents the amount of metal entitlement of ETC Securities which is not held as

physical metal inventory as at the reporting date but which is due to be received from the Programme Counterparty under the Balancing

Agreement.

The non-cash transactions relate to physical delivery of Precious metals to meet the redemption requests on debt financial liabilities or as

payment for subscriptions.

Other receivables

* As at 31 December 2022, there were 1,449 units of Gold @ $1,792.55 each, in respect to Series 1 and 1,063 units of Gold @ €1,697.81

each, in respect of Series 9 that were unsettled (31 December 2021: 20 units of Rhodium @ $14,175 each, in respect to Series 11 that were

unsettled).

Precious metals at fair value and Precious metal due from the Programme Counterparty at fair

value

Precious metals at fair value

DB ETC plc

Page 26

Notes to the financial statements (continued)

For the year ended 31 December 2022

Metals Currency

Total Metal

Fair value Fair value

CCY

EUR

Series 1 Gold USD

270,994 1,819.88 493,175,945 433,649,608

Series 2 Gold EUR

1,069,687 1,608.76 1,720,867,242 1,720,867,242

Series 4 Silver EUR

8,308,971 20.37 169,259,897 169,259,897

Series 6 Platinum EUR

163,005 849.93 138,542,893 138,542,894

Series 9 Gold USD

1,421,366 1,605.76 2,595,669,987 2,282,372,620

Series 10 Silver USD

42,153,276 20.39 977,494,803 859,511,180

Series 11 Rhodium USD

6,704 14,222.68 95,355,022 83,845,671

Series 12 Rhodium EUR

2,566 12,534.55 32,163,763 32,163,763

Series 13 Gold GBP

111,916 1,373.58 153,724,406 182,824,436

5,903,037,311

Movement in fair values by Series for the year ended 31 December 2022

Series Issuances Redemptions Closing

balance

01-Jan-22 31-Dec-22

EUR EUR EUR EUR EUR

Series 1 Gold USD

433,649,608 83,492,445 (182,241,760) 24,394,722 359,295,015

Series 2 Gold EUR

1,720,867,242 575,068,135 (575,416,378) (75,007,253) 1,645,511,746

Series 4 Silver EUR

169,259,897 103,096,308 (145,555,001) 81,263 126,882,467

Series 6 Platinum EUR

138,542,894 24,485,884 (128,246,536) 16,303,381 51,085,623

Series 9 Gold USD

2,282,372,620 687,068,716 (1,140,665,815) 173,061,062 2,001,836,583

Series 10 Silver USD

859,511,180 42,875,830 (765,196,601) 104,613,611 241,804,020

Series 11 Rhodium USD

83,845,671 - (1,803,371) (10,350,240) 71,692,060

Series 12 Rhodium EUR

32,163,763 - (2,502,479) (3,348,031) 26,313,253

Series 13 Gold GBP

182,824,436 30,046,075 (177,804,178) (3,267,360) 31,798,973

5,903,037,311 1,546,133,393 (3,119,432,119) 226,481,155 4,556,219,740

Movement in fair values by Series for the year ended 31 December 2021

Series Issuances Redemptions Closing

balance

01-Jan-21 31-Dec-21

EUR EUR EUR EUR EUR

Series 1 Gold USD

923,999,394 108,871,896 (588,599,866) (10,621,816) 433,649,608

Series 2 Gold EUR

2,881,386,303 585,860,678 (1,575,048,874) (171,330,865) 1,720,867,242

Series 4 Silver EUR

170,325,298 161,452,805 (136,177,306) (26,340,900) 169,259,897

Series 6 Platinum EUR

182,192,625 40,852,679 (66,104,989) (18,397,421) 138,542,894

Series 9 Gold USD

3,183,923,379 453,071,799 (1,396,190,431) 41,567,873 2,282,372,620

Series 10 Silver USD

951,554,967 109,966,425 (146,472,089) (55,538,123) 859,511,180

Series 11 Rhodium USD

118,000,954 - (34,975,401) 820,118 83,845,671

Series 12 Rhodium EUR

45,578,800 - (12,348,376) (1,066,661) 32,163,763

Series 13 Gold GBP

235,020,769 37,070,837 (89,903,234) 636,064 182,824,436

Series 3 Silver USD

49,035,422 12,434,844 (58,251,232) (3,219,034) -

Series 5 Platinum USD

36,472,238 7,013,208 (43,629,396) 143,950 -

Series 7 Palladium USD

6,595,228 1,936,347 (7,648,604) (882,971) -

Series 8 Palladium EUR

27,361,046 12,502,233 (36,159,418) (3,703,861) -

8,811,446,423 1,531,033,751 (4,191,509,216) (247,933,647) 5,903,037,311

Metal

description

CCY

Opening balance

Net changes in

fair values

Precious metals at fair value and Precious metal due from the Programme Counterparty at fair value (continued)

The fair values of the Precious Metal by Series as at 31 December 2021 are as follows:

Series

name

Adjusted Price per

ounce

Metal

description

CCY

Opening balance

Net changes in

fair values

DB ETC plc

Page 27

Notes to the financial statements (continued)

For the year ended 31 December 2022

Other payables

31-Dec-22 31-Dec-21

EUR EUR

ETC securities payables* 4,258,775 249,672

4,258,775 249,672

Nominal

Fair value

Nominal

Fair value

units units

issued

EUR

issued

EUR

ETC Securities issued

34,826,745 4,556,219,740 55,988,193 5,903,037,311

31-Dec-22 31-Dec-21

EUR EUR

5,903,037,311 8,811,446,423

Non-cash transactions

Issue of ETC Securities issued during the year

1,546,133,393 1,531,033,751

Redemption of ETC Securities issued during the year

(3,119,432,119) (4,191,509,216)

226,481,155 (247,933,647)

4,556,219,740 5,903,037,311

Series

Description CCY Product fees

Maturity Units Value per unit

Fair value

date Outstanding (CCY)

EUR

31-Dec-22 31-Dec-22 31-Dec-22

Series 1 USD

0.25%

15-Jun-60

2,197,162 175.06 359,295,015

Series 2 EUR

0.59%

15-Jun-60

14,530,182 113.25 1,645,511,746

Series 4 EUR

0.75%

15-Jun-60

912,000 139.13 126,882,467

Series 6 EUR

0.75%

14-Jul-60

827,598 61.73 51,085,623

Series 9 USD

0.25%

27-Aug-60

12,190,449 164.21 2,001,836,583

Xtrackers

Physical Gold

ETC (EUR)

The ETC Securities issued are listed on various exchanges including London, Switzerland, Milan, Dublin and Frankfurt. Refer to note 14 for

a description of the key risks regarding the issue of these instruments. The Company’s obligations under the financial liabilities issued are

secured by the precious metals as per note 9. The investors’ recourse per Series is limited to the assets of that particular Series. The Series

have an option for early redemption.

The financial liabilities in issue at 31 December 2022 are as follows:

Xtrackers

Physical Gold

ETC

Xtrackers

Physical Gold

EUR Hedged

ETC

Xtrackers

Physical

Silver EUR

Hedged ETC

Xtrackers

Physical

Platinum

EUR Hedged

ETC

31-Dec-22

31-Dec-21

Movement in ETC Securities issued

At beginning of the year

Net changes in fair value during the year

At end of the year

The non-cash transactions relate to physical delivery of ETC Securities to meet the redemption requests on debt financial liabilities or as

payment for subscriptions.

* As at 31 December 2022, there were unsettled redemption of 15,000 units of Xtrackers Physical Gold ETC at $173.17 each and 11,000

units of Xtrackers Physical Gold ETC at €164.11 each (31 December 2021: unsettled redemption of 221 units of Xtrackers Physical Rhodium

ETC at $1,279.577 each).

Financial liabilities designated at fair value through profit or loss

DB ETC plc

Page 28

Notes to the financial statements (continued)

For the year ended 31 December 2022

Series

Description CCY Product fees

Maturity Units Value per unit

Fair value

date Outstanding (CCY)

EUR

31-Dec-22 31-Dec-22 31-Dec-22

Series 10 USD

0.40%

27-Aug-60

1,137,632 212.55 241,804,020

Series 11 USD

0.95%

19-May-61

73,060 1,050.50 71,692,060

Series 12 EUR

0.95%

19-May-61

26,759 983.34 26,313,253

Series 13 GBP

0.69%

01-Apr-61

2,931,903 9.60 31,798,973

34,826,745 4,556,219,740

The financial liabilities in issue at 31 December 2021 are as follows:

Series

Description CCY Product fees

Maturity

Units

Value per unit

Fair value

date

outstanding

(CCY)

EUR

31-Dec-21 31-Dec-21 31-Dec-21

Series 1 USD

0.25%

15-Jun-60

2,798,048 176.26 433,649,608

Series 2 EUR 0.59% 15-Jun-60

14,702,882 117.04 1,720,867,242

Series 4 EUR 0.75% 15-Jun-60

1,213,804 139.45 169,259,897

Series 6 EUR 0.75% 14-Jul-60

2,396,611 57.81 138,542,893

Series 9

USD 0.25%

27-Aug-60

14,667,240 155.61 2,282,372,620

Series 10 USD 0.40% 27-Aug-60

4,428,282 194.10 859,511,181

Xtrackers

Physical

Silver EUR

Hedged ETC

Xtrackers

Physical

Platinum

EUR Hedged

ETC

Xtrackers

Physical Gold

ETC (EUR)

Xtrackers

Physical

Silver ETC

(EUR)

Xtrackers

Physical Gold

GBP Hedged

ETC

Xtrackers

Physical Gold

ETC

Xtrackers

Physical Gold

EUR Hedged

ETC

Financial liabilities designated at fair value through profit or loss (continued)

The financial liabilities in issue at 31 December 2022 are as follows: (continued)

Xtrackers

Physical

Silver ETC

(EUR)

Xtrackers

Physical

Rhodium

ETC

Xtrackers

Physical

Rhodium

ETC (EUR)

DB ETC plc

Page 29

Notes to the financial statements (continued)

For the year ended 31 December 2022

The financial liabilities in issue at 31 December 2021 are as follows: (continued)

Series

Description CCY Product fees

Maturity

Units

Value per unit

Fair value

date

outstanding

(CCY)

EUR

31-Dec-21 31-Dec-21 31-Dec-21

Series 11 USD

0.95%

19-May-61

74,313 1,283.15 83,845,671

Series 12 EUR 0.95% 19-May-61

28,410 1,132.13 32,163,763

Series 13 GBP 0.69% 01-Apr-61

15,678,603

9.80

182,824,436

55,988,193 5,903,037,311

Movement in fair values by Series for the period ended 31 December 2022

Series Description Issuances Redemptions

Closing

balance

01-Jan-22 31-Dec-22

EUR EUR EUR EUR

EUR

Series 1

433,649,608 83,492,445 (182,241,760) 24,394,722 359,295,015

Series 2

1,720,867,242 575,068,135 (575,416,378) (75,007,253) 1,645,511,746

Series 4

169,259,897 103,096,307 (145,555,001) 81,264 126,882,467

Series 6

138,542,894 24,485,884 (128,246,536) 16,303,381 51,085,623

Series 9

2,282,372,620 687,068,716 (1,140,665,815) 173,061,062 2,001,836,583

Series 10

859,511,180 42,875,831 (765,196,601) 104,613,610 241,804,020

Series 11

83,845,671 - (1,803,371) (10,350,240) 71,692,060

Series 12

32,163,763 - (2,502,479) (3,348,031) 26,313,253

Series 13

182,824,436 30,046,075 (177,804,178) (3,267,360) 31,798,973

5,903,037,311 1,546,133,393 (3,119,432,119) 226,481,155 4,556,219,740

Xtrackers Physical Gold

GBP Hedged ETC

Xtrackers Physical Silver

EUR Hedged ETC

Xtrackers Physical Platinum

EUR Hedged ETC

Xtrackers Physical Gold

ETC (EUR)

Xtrackers Physical Silver

ETC (EUR)

Xtrackers Physical Rhodium

ETC

Xtrackers Physical Rhodium

ETC (EUR)

Xtrackers

Physical

Rhodium

ETC (EUR)

Xtrackers

Physical Gold

GBP Hedged

ETC

Opening balance

Net changes in

fair values

Xtrackers Physical Gold

ETC

Xtrackers Physical Gold

EUR Hedged ETC

Financial liabilities designated at fair value through profit or loss (continued)

Xtrackers

Physical

Rhodium

ETC

DB ETC plc

Page 30

Notes to the financial statements (continued)

For the year ended 31 December 2022

Movement in fair values by Series for the year ended 31 December 2021

Series Description Issuances Redemptions Closing

balance

01-Jan-21 31-Dec-21

EUR EUR EUR EUR EUR

Series 1

923,999,394 108,871,896 (588,599,866) (10,621,816) 433,649,608

Series 2

2,881,386,303 585,860,678 (1,575,048,874) (171,330,865) 1,720,867,242

Series 4

170,325,298 161,452,805 (136,177,306) (26,340,900) 169,259,897

Series 6

182,192,625 40,852,679 (66,104,990) (18,397,421) 138,542,893

Series 9

3,183,923,379 453,071,799 (1,396,190,431) 41,567,873 2,282,372,620

Series 10

951,554,967 109,966,425 (146,472,088) (55,538,123) 859,511,181

Series 11

118,000,954 - (34,975,401) 820,118 83,845,671

Series 12

45,578,800 - (12,348,376) (1,066,661) 32,163,763

Series 13

235,020,769 37,070,837 (89,903,234) 636,064 182,824,436

Series 3

49,035,422 12,434,844 (58,251,232) (3,219,034) -

Series 5

36,472,238 7,013,208 (43,629,396) 143,950 -

Series 7

6,595,228 1,936,347 (7,648,604) (882,971) -

Series 8

27,361,046 12,502,233 (36,159,418) (3,703,861) -

8,811,446,423 1,531,033,751 (4,191,509,216) (247,933,647) 5,903,037,311

31-Dec-22 31-Dec-21

GBP GBP

10,000 10,000

EUR EUR

As at 31 December 2022, the ordinary share capital was held by the following non-beneficial nominees:

31-Dec-22

31-Dec-21

GBP

Vistra Nominees I Limited

Vistra Nominees II Limited

Capital risk management

The Company is a special purpose vehicle set up to issue ETC Securities for the purpose of making investments as defined under the

programme memorandum and in each of the Series memorandum agreements. Share capital of GBP 2 was issued in line with Jersey Company

Law and is not used for financing the investment activities of the Company. The Company is not subject to any other externally imposed

capital requirements.

Authorised:

10,000 ordinary shares of GBP 1 each

Issued and fully paid:

2 ordinary shares of GBP 1 each

The authorised share capital of the Company is GBP 10,000, out of which 2 ordinary shares have been issued and fully paid. The nominees

have no beneficial interest in and derives no benefit from its holding of the shares. There are no other rights that pertain to the shares and the

shareholders.

Xtrackers Physical Gold

GBP Hedged ETC

Xtrackers Physical Silver

ETC

Xtrackers Physical Platinum

ETC

Xtrackers Physical

Palladium ETC

Xtrackers Physical

Palladium EUR Hedged

Share capital

Xtrackers Physical Silver

EUR Hedged EC

Xtrackers Physical Platinum

EUR Hedged ETC

Xtrackers Physical Gold

ETC (EUR)

Xtrackers Physical Silver

ETC (EUR)

Xtrackers Physical Rhodium

ETC

Xtrackers Physical Rhodium

ETC (EUR)

Financial liabilities designated at fair value through profit or loss (continued)

Opening balance

Net changes in

fair values

Xtrackers Physical Gold

ETC

Xtrackers Physical Gold

EUR Hedged ETC

DB ETC plc

Page 31

Notes to the financial statements (continued)

For the year ended 31 December 2022

14 Financial risk management

Risk management framework

(a) Market risk;

(b) Credit risk;

(d) Operational risk; and

(e) Climate risk.

(a) Market risk

(i) Interest rate risk

(ii) Currency risk

Metals ETC Securities

Net exposure

Series name Currency EUR EUR

EUR

Series 1 USD

359,295,015 359,295,015

Series 9 USD

2,001,836,583 2,001,836,583

Series 10 USD

241,804,020 241,804,020

Series 11 USD

71,692,060 71,692,060

Series 13 GBP

31,798,973 31,798,973

2,706,426,651 2,706,426,651 -

Metals ETC Securities

Net exposure

EUR EUR

EUR

Series 1 USD

433,649,608 433,649,608 -

Series 9 USD

2,282,372,620 2,282,372,620 -

Series 10 USD

859,511,180 859,511,181 -

Series 11 USD

83,845,671 83,845,671 -

Series 13 GBP

182,824,436 182,824,436 -

3,842,203,515 3,842,203,516 -

Details of the currencies under each series for the Precious Metals and Financial liabilities designated at fair value through

profit or loss have been disclosed under the respective notes 9 and 11 to the financial statements.

The value of Precious metal due from the Programme Counterparty represents quantity of metal bullion, accordingly it is

not considered to be a currency exposure.

Currency risk is the risk which arises where the assets and liabilities of the Company are denominated in currencies other

than its functional currency. As at 31 December 2022, the Company is exposed to assets and liabilities denominated in US

Dollars (USD) and Pound Sterling (GBP).

The Company is not exposed to net currency risk since the foreign exchange movements in its financial liabilities will be

offset by the foreign exchange movements in its Precious metals. Any net foreign currency risk is borne by the ETC

Securityholders.

As at the reporting date, the carrying value of the Company’s assets and liabilities held in individual foreign currencies

were as follows:

31-Dec-22

31-Dec-21

The Company, and ultimately the holders of the ETC Securities, have exposure to the following risks from its use of financial instruments:

This note presents information about the Company's exposure to each of the above risks, the Company's objectives, policies and processes for

measuring and managing these risks.

Market risk comprises three types of risk: interest rate risk, currency risk and other price risk. The ETC Securityholders are

exposed to the market risk of the financial instruments.

Interest rate risk is the risk that the fair value or future cash flows of financials instruments will fluctuate as a result of a

change in interest rates. The ETC Securities, the Precious metal due from the Programme Counterparty and the Precious

metals do not bear interest. As such, the Company and ETC Securityholders have limited exposure to interest rate risk.

DB ETC plc

Page 32

Notes to the financial statements (continued)

For the year ended 31 December 2022

Financial risk management (continued)

(a) Market risk (continued)

(ii) Currency risk (continued)

The following exchange rates have been applied during the year:

31-Dec-22 31-Dec-21 31-Dec-22 31-Dec-21

USD-EUR 0.95110 0.84594 0.93410

0.87930

GBP-EUR 1.17314 1.16341 1.12950

1.18930

(iii) Price risk

(b) Credit risk

31-Dec-22 31-Dec-21

EUR EUR

Precious metal due from the Programme Counterparty 555,970 7,086,475

4,288,775 279,672

4,844,747 7,366,149

Custodian risk

The Company has no net credit risk given its obligations to the ETC Securityholders are limited in recourse to the amount received

on the Precious metals for each series of ETC Securities.

As at 31 December 2022, no financial assets carried at amortised cost were past due or impaired (2021: Nil). All the assets have

been pledged as collateral for financial liabilities and are disclosed in note 9.

The Company’s Custodian is JPMorgan Chase Bank N.A., London Branch (the “Custodian”) and the Sub-Custodian is Johnson

Matthey (the "Sub-Custodian"). The Company’s ability to meet its obligations with respect to the ETC Securities is dependent

upon the performance of the Custodian of its obligations under the relevant Custody Agreement. The Directors have also

considered the credit risk and counterparty risk with the Custodian, the Sub-Custodian and Deutsche Bank AG, London Branch as

the Programme Counterparty, respectively of the allocated and unallocated Precious metals held by the Company given the

significance of the Precious metals to the overall financial position of the Company. As at 31 December 2022, the Company held

Precious metals at fair value of EUR 4,457,658,450 and EUR 98,005,320 respectively (2021: EUR 5,779,957,454 and EUR

115,993,381) with JPMorgan and Johnson Matthey, and Precious metal due from the Programme Counterparty with a fair value of

EUR 555,970 (2021: EUR 7,086,475) from Deutsche Bank AG, London Branch.

When a shortfall of Precious metal occurs, the shortfall is made up, in accordance with the terms of the Balancing

Agreement, through a balance of Precious metal being due from the Programme Counterparty. Accordingly, the ETC

Securityholders are exposed to the market price risk of their metal entitlement under the ETC Securities.

Any changes in the metal spot prices on the Precious metals held by the Company would not have any net effect on the

equity or the profit or loss of the Company since changes in the fair value of Precious metals or in the balance of Precious

metal due from the Programme Counterparty would be offset by corresponding changes in the fair value of the ETC

Securities and as such any price risk is ultimately borne by the ETC Securityholders.

Credit risk is the risk of financial loss to the Company if a counterparty to a financial instrument fails to meet its contractual

obligations. The Company’s principal financial assets are cash and cash equivalents, other receivables and Precious metal due

from the Programme Counterparty which represents the Company's maximum exposure to credit risk. All credit risks are ultimately

borne by the ETC Securityholders.

Other receivables

Cash and cash equivalents

Average rate - year ended

Closing rate

The impact of changes in foreign exchange rates on the Precious metals at fair value is offset by the impact of foreign

exchange rate changes on the financial liabilities. Therefore any change in the exchange rates would have no net effect on

the equity or the profit or loss of the Company.

Price risk is the risk that changes in market prices of metals will affect the Company’s income, expense, Precious metals

and financial liabilities designated at fair value through profit or loss.TheCompany’s liabilities are exposed to the market

prices of the metals. However, the risk is mitigated by the Company holding quantities of physical Precious metals

equivalent to the weight of metal entitlement for each Series of ETC Securities issued.

DB ETC plc

Page 33

Notes to the financial statements (continued)

For the year ended 31 December 2022

Financial risk management (continued)

(b) Credit risk (continued)

Custodian risk (continued)

Concentration risk

By industry 31-Dec-22

31-Dec-21

Types of collaterals

Gold

89 78

Silver

817

Platinum

Rhodium

100 100

By Geographical location 31-Dec-22

31-Dec-21

Country of origin

United Kingdom

100 100

Other receivables

EUR EUR EUR

Financial liabilities designated at fair value through profit or loss 4,556,219,740 4,556,219,740 4,556,219,740

Other payables 4,258,775 4,258,775 4,258,775

4,560,478,515 4,560,478,515 4,560,478,515

Other receivables are mainly precious metal receivables from Authorised Participants. It also comprises an amount receivable from

Vistra Fund Services Limited at the year end.

Liquidity risk is the risk that the Company will not be able to meet its obligations as they fall due. The Company limits its exposure

to liquidity risk given the Company’s ability to realise the Precious metals in cash and the Precious metals held by each series

match the securities issued and redemptions made. The ultimate amount repaid to the ETC Securityholders is limited in recourse to

the proceeds from the Precious metals. All liquidity risk associated with the Precious metals are ultimately borne by the ETC

Securityholders.

The contractual maturity profile of financial liabilities as at 31 December 2022 is as follows:

Carrying amount

Gross contractual

cash flows

Less than one

year

As the credit rating of JP Morgan Chase Bank NA, London Branch, is not available, the Directors have considered the overall long

term credit rating status of JPMorgan Chase Bank N.A (2022: S&P A+) (2021: S&P A+), and are of the opinion that counterparty

risk is acceptable. The Directors have considered the overall credit rating status of Deutsche Bank AG (2022: S&P bbb) (2021:

S&P bbb) as the credit ratings for Deutsche Bank AG, London Branch is not available. The Directors are of the opinion that

counterparty risk is acceptable. The Directors believe that the counterparty risk and credit risk exposure of the Company to the Sub-

Custodian, Johnson Matthey, is not significant given that only approximately 2% (2021: 2%) of the total value of Precious metals

are held with this Sub-Custodian.

At the reporting date, the Company's Precious metals at fair value were concentrated in the following asset types and geographical

location:

The precious metals are held by the Custodian in their vault premises in the United Kingdom. The Custodian has no obligation to

maintain insurance specific to the Company or specific only to the precious metal held for the Company against theft, damage or

loss. However, the Custodian maintains insurance in connection with its own business operation. The level of insurance and

particulars remains at the discretion of the Custodian. There is a risk that the precious metal could be lost, stolen or damaged and

the Company would not be able to satisfy its obligations in respect of the ETC Securities. In such an event the Company would

adjust the Metal Entitlement of each Security of the relevant Series to the extent necessary to reflect such damage or loss.

Ultimately, all credit and counterparty risks associated with JP Morgan and Deutsche Bank are borne by the ETC Securityholders.

DB ETC plc

Page 34

Notes to the financial statements (continued)

For the year ended 31 December 2022

Financial risk management (continued)

EUR EUR EUR

Financial liabilities designated at fair value through profit or loss 5,903,037,311 5,903,037,311 5,903,037,311

Other payables 249,672 249,672 249,672

5,903,286,983 5,903,286,983 5,903,286,983

Subscriptions

Buy-backs

Redemptions

Final Redemption

(d) Operational risk

Operational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the Company’s processes

and infrastructure, and from external factors other than credit, markets and liquidity issues such as those arising from legal and

regulatory requirements and generally accepted standards of corporate behaviour.

Operational risks arise from all of the Company’s operations. The Company was incorporated with the purpose of engaging in

those activities outlined in note 1. All administration functions are undertaken by Vistra Fund Services Limited. Deutsche Bank

AG, London Branch acts as the Company’s Lead Authorised Participant, Arranger, Metal Agent, Issuing and Paying Agent and

Programme Counterparty.

The carrying amount and the gross contractual cashflows are equal to the fair value of each liability as stated in the Statement of

financial position.

Only Authorised Participants may subscribe for ETC Securities from the Issuer. The Authorised Participant(s) in respect of each

Series of ETC Securities at the Issue Date of such Series will be specified in the relevant Final Terms.

Securities may be offered to any category of potential investors provided that the offer complies with the selling restrictions as

defined in the Company’s Prospectus.

The Issuer may (without the consent of the Trustee or any Securityholder), from time to time, buy back all or some of the ETC

Securities. Only an Authorised Participant may request that the Issuer buy back ETC Securities by delivering a valid Buy-Back

Order subject to and in accordance with the terms of the Authorised Participant Agreement. The Issuer will only accept a Buy-

Back Order and buy back ETC Securities if a valid Buy-Back Order is given by an Authorised Participant and all conditions

precedent to a purchase of the ETC Securities are satisfied.

The ETC Securities of a Series may become due and payable prior to their Scheduled Maturity Date, which is known as an “Early

Redemption Event” as defined in the Company’s Prospectus. If any of the Early Redemption Events occur, each ETC Security will

become due and payable at an amount (the “Early Redemption Amount”) equal to the greater of (i) the Early Metal Redemption

Amount (the metal entitlement per ETC Security multiply the Average metals sale Price).

Unless previously redeemed in whole or purchased and cancelled by the Issuer, the ETC Securities of each series will become due

and payable on their scheduled maturity date at their final redemption amount. The Issuer has the discretion to set the Scheduled

Maturity Date of a series of ETC Securities prior to the issue of that series of ETC Securities.

Their Final Redemption Amount and Early Redemption Amount depend on the Value per ETC Security, which in turn depends on

the value of the Underlying Metal and, in the case of FX Hedged ETC Securities, the Value per ETC Security and any gains or

losses on the foreign exchange hedge.

The contractual maturity profile of financial liabilities as at 31 December 2021 is as follows:

Carrying amount

Gross contractual

cash flows

Less than one

year

Due to the fact that the ETC Securityholders have the option to redeem the securities before the final scheduled maturity date, the

financial liabilities designated at fair value through profit or loss have been classified as due in less than one year.

DB ETC plc

Page 35

Notes to the financial statements (continued)

For the year ended 31 December 2022

Financial risk management (continued)

(e) Climate risk

15 Fair values

Level 1: Quoted market price in an active market for an identical instrument.

Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Level 1 Level 2 Level 3 Total

EUR EUR EUR EUR

Precious metal due from the Programme Counterparty - 555,970 - 555,970

Precious metals at fair value - 4,555,663,770 - 4,555,663,770

- (4,556,219,740) - (4,556,219,740)

----

31-Dec-22

Financial liabilities designated at fair value through profit

or loss

The objective of valuation techniques is to arrive at a fair value determination that reflects the price of the financial instrument at the

reporting date that would have been determined by market participants acting at arm’s length.

Level 2 prices use widely recognised valuation models for determining the fair value of common and more simple financial instruments that

use only observable market data and require little management judgement and estimation. Availability of observable market prices and model

inputs reduces the need for management judgement and estimation and also reduces the uncertainty associated with determination of fair

values. Availability of observable market prices and inputs varies depending on the products and markets and is prone to changes based on

specific events and general conditions in the financial markets.

Transfers between levels are determined based on changes to the significant inputs used in their fair value measurement. The Directors

evaluate whether significant inputs to the valuation models are observable at the year end in making a decision to change levelling from one

level to another.

The Company determines the effective date of transfer at the beginning of the reporting year.

The Company does not have any financial instruments at level 1 or 3 and there has not been any transfer between levels during the year ended

31 December 2022.

At 31 December 2022, the carrying amounts of Precious metals at fair value, Precious metal due from the Programme Counterparty and

financial liabilities issued by the Company are as follows:

The Company's financial assets and financial liabilities at fair value through profit or loss are carried at fair value in the Statement of financial

position.

The Company’s accounting policy on fair value measurement for Precious metal is disclosed in note 3(e) to the financial statements. The

Company's accounting policy on fair value measurement of financial assets designated at fair value through profit or loss and financial

liabilities designated at fair value through profit or loss is disclosed in note 3(f). The Company measures fair values using the following fair

value hierarchy that reflects the significance of the inputs used in making the measurements.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as

prices) or indirectly (i.e. derived from prices).

The Directors acknowledge that climate change is an emerging risk impacting the global economy and will continue to be of

interest to all stakeholders with a focus on how climate change is expected to impact the operations of the precious metals industry

in areas such as mining, processing, warehousing, transportation, societal response and the regulatory environment in the future.

However, having considered such factors relating to climate change, the Directors have determined that there are no direct or

immediate impacts of climate change on the business operations of the Company. Given this, there is no basis on which to provide

extended information of analysis relating to climate change risks on the business operations of the Company. Furthermore, the

Directors conclude that at present there is no material impact to the fair value of financial instruments, assets and liabilities of the

company. The Directors recognise that governmental and societal responses to climate change risks are still developing and the

future impact cannot be predicted. Therefore, the future fair value of assets and liabilities may fluctuate as the market responds to

climate change policies, physical events and changes in societal behaviours.

DB ETC plc

Page 36

Notes to the financial statements (continued)

For the year ended 31 December 2022

Fair values (continued)

Level 1 Level 2 Level 3 Total

EUR EUR EUR EUR

Precious metal due from the Programme Counterparty - 7,086,475 - 7,086,475

Precious metals at fair value - 5,895,950,836 - 5,895,950,836

- (5,903,037,311) - (5,903,037,311)

----

16 Classification of financial instruments

31-Dec-22 31-Dec-22 31-Dec-21 31-Dec-21

At fair value through profit or loss

EUR EUR EUR EUR

Precious metals at fair value 4,555,663,770 4,555,663,770 5,895,950,836 5,895,950,836

Precious metal due from the Programme Counterparty 555,970 555,970

7,086,475 7,086,475

(4,556,219,740) (4,556,219,740)

(5,903,037,311) (5,903,037,311)

- - -

At amortised cost

Cash and cash equivalents 2 2 2 2

Other receivables 4,288,775 4,288,775 279,672 279,672

(4,258,775) (4,258,775) (249,672) (249,672)

30,002 30,002 30,002 30,002

Operating expenses

Related Party Transactions and connected parties

Carrying

value

Fair

value

Carrying

value

Fair

value

Financial liabilities designated at fair value through profit

or loss

At 31 December 2021, the carrying amounts of Precious metals at fair value, Precious metal due from the Programme Counterparty and

financial liabilities issued by the Company are as follows:

31-Dec-21

Financial liabilities designated at fair value through profit

or loss

Although the Directors believe that their estimates of fair value are appropriate, the use of different methodologies or assumptions could lead

to different measurements of fair value as fair value estimates are made at a specific point in time, based on market conditions and

information about the financial instrument.

Authorised participants are the only entities allowed to buy and sell ETC securities directly from and to the Company. Deutsche Bank AG,

London Branch acts as the Lead Authorised Participant. As at 31 December 2022, the number of ETC Securities held by the Lead Authorised

Participant was 22 units (EUR 21,629) (31 December 2021: 29,629 units (EUR 3,992,695)).

Other payables

Deutsche Bank AG, London Branch, as Programme Counterparty, entered into a Balancing Agreement with the Company. The Programme

Counterparty will provide deliveries of Precious metals to reflect deductions of fees and other rebalancing adjustments. Precious metal due

from the Programme Counterparty amounting to EUR 555,970 (31 December 2021: EUR 7,086,475) were outstanding as at 31 December

2022.

Marc Harris, a Director of the Company is an employee of an affiliate company of the administrator and Visdirect Services Limited and

Viscom Services Limited are affiliates of the administrator.

Product fees incurred for the year ended 31 December 2022 due to Arranger amounted to EUR 21,980,160 (2021: EUR 30,017,153). No

amount was payable as at 31 December 2022 (2021: EUR Nil).

Visdirect Services Limited and Viscom Services Limited act solely in the capacity as Directors of Jersey companies, pursuant to the

Companies (Jersey) Law 1991, as amended. Visdirect Services Limited and Viscom Services Limited are both part of the Vistra group of

companies. No fee was charged or paid to the Vistra Group during the period under review by the Company for the provision of Directors. All

expenses of the Company are borne by Deutsche Bank AG, London Branch, as Arranger, including fees paid to Vistra. During the financial

year, the Company incurred a cost of EUR 45,000 (2021: EUR 45,000) relating to administration services provided by Vistra Fund Services

Limited.

All costs associated with the Company are paid by the Arranger including audit fees. Audit fees incurred for the year ended 31 December

2022 amounted to EUR 96,008 (2021: EUR 77,616).

DB ETC plc

Page 37

Notes to the financial statements (continued)

For the year ended 31 December 2022

Ultimate controlling party

Key management personnel

The key management personnel have been identified as being the Directors of the Company.

21 Subsequent events

There has been no other significant subsequent events since the year end and up to the date of signing this report, …..........................., that

require disclosure in this financial statements.

The Directors of the Company consider Vistra Corporate Services Limited as trustee of the DB ETC Charitable Trust (the beneficial owner of

the issued share capital of the Company) to be the ultimate controlling party of the Company.

Marc Harris is an employee of Vistra (Jersey) Limited during the year ended 31 December 2022. His emoluments are paid by Vistra Fund

Services Limited and other related entities and no re-charge is made to the Company. It is therefore not possible to make a reasonable

apportionment of his emoluments in respect of the Company.

29 March 2023