30°ANNUAL REPORT 2005 - ZSNPannual report 2005 - 5 - table of content 1. managing director’s...
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30° Žiar nad Hronom ANNUAL REPORT 2005
Transcript of 30°ANNUAL REPORT 2005 - ZSNPannual report 2005 - 5 - table of content 1. managing director’s...
30°
Ž i a r n a d H r o n o m
A N N U A L
R E P O R T 2 0 0 5
ZSNP, a.s.,
Annual Report 2005
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Table of Content
1. MANAGING DIRECTOR’S INTERCESSION 6
2. BASIC COMPANY INFORMATION BY 31.12.2005 8 2.1. INFORMATION ON FIXED ASSETS 8 2.2. STRUCTURE OF SHAREHOLDERS BY DECEMBER 31, 2005 8 2.3. STATUTORY AND SUPERVISION BODIES OF THE COMPANY BY DECEMBER 31, 2005 8
3. STRUCTURE AND CORE BUSINESS ACTIVITIES BY DECEMBER 31, 2005 9 3.1. CORE-BUSINESS DIVISIONS 9 3.2. SERVICE DIVISIONS 9 3.3. NON CORE BUSINESS DIVISIONS 9 3.4. SUBSIDIES OF ZSNP, A.S. WITH ABSOLUTE CONTROL 9 3.5. SUBSIDIES OF ZSNP, A.S. WITH MAJOR CONTROL 10 3.6. ORGANIZATIONAL UNITS ABROAD 10 3.7. CHANGES IN ORGANIZATIONAL STRUCTURE 10
4. REPORT ON COMPANY BUSINESS ACTIVITIES AND ASSET CONDITION 11 4.1. SUMMARY OF SELECTED INDICATORS OF ZSNP, A.S., DIVISIONS AND UNITS 12 4.2. PRODUCT PORTFOLIO OF ZSNP, A.S. 12
5. INFORMATION ON DEVELOPMENT OF ACTIVITIES AND FINANCIAL SITUATION OF ZSNP, A.S. 17 5.1. MAIN INDICATORS 17 5.2. STATEMENT OF FINANCES 17 5.3. SUPERVISORY BOARD’S STATEMENT TO THE DUE INDIVIDUAL STATEMENT OF FINANCES
2005 AND PROPOSAL FOR SETTLEMENT OF ECONOMICAL RESULT 2005 23 5.4. SIGNIFICANT EVENTS WHICH OCCURRED AFTER THE END OF 2005 24 5.5. INFORMATION ON EXPECTED DEVELOPMENT OF ZSNP, A.S. IN 2006 24
6. OTHER INFORMATION 26 6.1. HUMAN RESOURCES AND SAFETY 26 6.2. INTEGRATED MANAGEMENT SYSTEM 28 6.3. ENVIRONMENT 29
7. ANNEX 31
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1. Managing Director’s intercession
Dear Shareholders
Year 2005 was very successful for ZSNP, a.s. when profit before taxation in amount of SKK 1,9 bil. was
achieved. First of all, it is a result of restructuralization and complex improvement of efficiency of all
activities, programmed by the new owner of private equity – Penta Group – after privatization in 2002.
During 3 years since privatization ZSNP, a.s. changed from the Company with loss to the Company with
profit.
In 2005 ZSNP, a.s. reached revenues in total amount of almost SKK 2,9 bil. with revenues from export of
products and goods above SKK 1,2 bil. Operation economical results were approx. SKK 258 mil., which
means 3,5-fold of operation economical result reached in 2004.
ZSNP, a.s. needs produced profit for investment, especially for fulfillment of important and very demanding
ecological obligation from the past – sludge bed recovery. In 2005 Company invested approx. SKK 150 mil.
with over SKK 50 mil. directed to ecology with intensive resolution of sludge bed issue. During project
implementation last year we paid attention to alkali water disposal affecting final biological recovery. ZSNP,
a.s., plans to implement this project within 5 next years with min. required costs of SKK 1,5 bil. Second part
of investments in 2005 was directed to the improvement of competitiveness, area of production
development, product quality improvement and occupational safety and working environment improvement.
Major owner of private equity – Penta Group – acquired two strong foreign investors for the Company in
2005. Swedish company SAPA AB invested to Alufinal, a.s. producing extruded aluminium profiles and
Spain multinational concern Fagor Ederlan invested to ZSNP Foundry, a.s., specialized on high-pressure die
casting and machining of aluminium components for automotive industry. One of the critical criterions
during making of decision on new owners was vision of investors connected with their development plans.
Together with new owners Alufinal, a.s. and ZSNP FOUNDRY, a.s. acquired also new perspective and
ambitions of further improvement of their positions on both domestic and foreign market.
By the end of previous year ZNSP, a.s. bought over 76% share in TEPLO, s.r.o. providing heat distribution in
the city from Žiar nad Hronom. ZSNP became a 100% owner of this company so it is able to use advantages
of synergic effects resulting from merger of heat generator – ZSNP, a.s. – and heat distributor.
In 2005 even better results were achieved then during previous 2 years. This year again acknowledged
correctness of strategy of major owner, focused on recovery of all activities. Today, ZSNP, a.s. is a
stabilized, profitable company with good perspective for its production. Arrival of new investors was
additional important step in fulfillment of strategic plans of private equity owner – Penta Group. In addition,
positive balance in 2005 created excellent starting point for fulfillment of economical tasks in this year.
Success achieved in 2005 is result of effective cooperation of majority owner of private equity – Penta
Group – determining basic strategy of ZSNP, a.s. very professionally and on top level, monitoring and
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correcting fulfillment of the same together with ZSNP, a.s. management paying primary attention to this
strategy. This success is also result of excellent work of experts in other executive positions and
employees, significantly contribution to excellent results in 2005. I would like to thank you all for your effort.
In addition, I would like to thank our customers and business partners for their confidence and good
cooperation.
Ing. Peter Ondro Managing Director
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2. Basic Company information by 31.12.2005
Company name: ZSNP, a.s. Registered office: Priemyselná 12 965 63 Žiar nad Hronom Slovak Republic Reg. No.: 30222524
Company is registered with Commercial Register of District Court Banská Bystrica, Sect. Sa, File No. 25/S.
Joint-stock company was founded by approval of privatization project by resolution of Slovak Government No. 406/91 dated July 23, 1991 acc. to § 10 of the Act no. 92/91 St. On conditions of state property transfer to other subjects and after approval of Foundation charter and statute on August 6, 1991 acc. to § 25 of the Act No. 104/90 St. On joint-stock companies. Company was registered with Commercial register on August 16, 1991.
ZSNP, a.s. is a company with long-term tradition in the area of aluminium processing with production portfolio including production of aluminium alloys, aluminium semi-products and final products of aluminium.
2.1. Information on fixed assets
Fixed assets: SKK 1.273.622.020,- payable in full amount No. of shares emitted: 5.789.191 pcs in nominal value SKK 220,- Type of shares: ordinary Form of shares: registered Share state: documentary Company owns 20.192 pcs of own shares with acquisition price SKK 220,- with 21 pcs of shares intended for 2 shareholders of ALUFINAL, a.s., not expressing their interest in exchange of share so far because of merger of ALUFINAL, a.s. and ZSMP, a.s. Remaining 20.171 pcs of shares were purchased by the Company from minor shareholders.
2.2. Structure of shareholders by December 31, 2005
Shareholder Fixed assets share
(In th. SKK) Share in %
PENTA INVESTMENTS LIMITED 1 223 314 96,05%
Other physical and corporate bodies 50 308 3,95%
2.3. Statutory and supervision bodies of the Company by December 31, 2005
Board of Directors
Ing. Jozef Špirko - Chairman Mgr. Jozef Oravkin - Member Ing. Peter Ondro - Member Ing. Ján Klimko - Member
ZSNP, a.s. Supervisory Board
Dr.h.c. Ing. Jozef Pittner, PhD. - Chairman Dr.h.c. Ing. Jozef Uhrík, CSc. - Member Mgr. Pavel Kúš - Member and Representative of Employees.
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3. Structure and core business activities by
December 31, 2005
3.1. Core-business divisions
Division TUBY Manufacture and sale of aluminium and laminated tubes Division FINALCAST Manufacture and sale of gravity and low pressure die
castings made of aluminium alloys
3.2. Service divisions
Division Energetika Generation and supplies of energy sources, industrial and drinking water, waste stock-pile
Division Náraďovňa Instruments and tools production Division údržba Maintenance and service Division Doprava Road and railway transport Division LKV Administration and maintenance of sludge bed, treatment
and processing of alkali water
3.3. Non core business divisions
Division SLOVAL Manufacture and sale of aluminium alloys
3.4. Subsidies of ZSNP, a.s. with absolute control
Company name ZSNP share Place of seat
Alufinal, a.s. 100 % Žiar nad Hronom
ZSNP FOUNDRY, a.s. 100 % Žiar nad Hronom
ZSNP RECYKLING, s.r.o. 100 % Žiar nad Hronom
ZSNP TRADE, s.r.o. 100 % Žiar nad Hronom
Enviroservis, s.r.o. 100 % Žiar nad Hronom
SLOVAL, a.s. 100 % Žiar nad Hronom
TUBAPACK, a.s. 100 % Žiar nad Hronom
CORE BUSINESS DIVISIONS
SERVICE DIVISIONS NON –CORE BUSINESS DIVISIONS
ZSNP, a.s.
FINALCAST
TUBY
ENERGETIKA
NÁRAĎOVŇA
ÚDRŽBA
DOPRAVA
LKV
SLOVAL
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UM, s.r.o. 100 % Žiar nad Hronom
TEPLO, s.r.o. 100 % Žiar nad Hronom
ZSNP Elektrovodiče s.r.o. 100 % Prague, Czech Rep.
ALUPROF spol. s r.o. 51 % Prague, Czech Rep.
• Alufinal, a.s. was founded on June 21, 2005. On February 8, 2006 the company was renamed to Sapa Profily a.s.,
• On February 21, 2006 SLOVAL, a.s. was renamed to FINALCAST, a.s.,
• Business share in ALUFINAL Praha, s.r.o., ALUPA s.r.o., Pardubice, subsidy of Alufinal, a.s., (Sapa Profily a.s.) sold.
3.5. Subsidies of ZSNP, a.s. with major control
Company name ZSNP share Place of seat
Slovalco, a.s. 34,7 % Žiar nad Hronom
3.6. Organizational units abroad
Company has no organizational unit located abroad.
3.7. Changes in organizational structure
During 2005 the following organizational units were made:
1. In August 2005 ALUFINAL Division was separated from Alufinal, a.s. (Sapa Profily, a.s.).
2. In August 2005 Division NÁRAĎOVŇA and ÚDRŽBA were divided into 2 separate organizational
units – Division Náraďovňa and Division Údržba.
3. In December 2005 Division VUM was separated to the joint-stock company VUM, a.s. and VUM,
a.s. was then sold.
4. As result of the above facts and continuing restructuralization employment level decreased from
1.345 employees in 2004 to 1.092 in 2005.
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4. Report on Company business activities and asset
condition
Year 2005 confirmed correctness of overall transformation of ZSNP, a.s. started in 2003. Achievement of
profit resulted from continuation of restructuralization and rationalization actions taken during previous
period after privatization. The main sources of achieved success were stabilized internal environment of the
Company, strong support of commercial activities, orientation to development projects and long-term
strategic objectives and sufficiency of own financial sources.
Acc. to the intent of major shareholder to sale individual stabilized divisions of the Company to the strategic
investors project of re-branding of product marks of individual divisions was implemented in 2004 to made
business partners aware of names of individual divisions and to provide sales promotion for products of
these divisions.
In this view year 2005 was extraordinary successful, as negotiations with strategic investors were
successfully completed. Investor SAPA AB was acquired for Alufinal, a.s. and Fagor Ederlan for ZSNP
FOUNDRY, a.s.
In the area of sale Company was trying to strengthen its position on foreign markets. Production divisions
sold majority of production abroad. Total share of export on revenues reached 42% with major export
territories including Germany, Czech Republic, Slovenia and Hungary.
Financial independence guaranteed by revolving credit enabled continuous financing of development
investments resulting in improvement of efficiency and extension of product and service portfolio acc. to the
strategic objectives. Such portfolio extension subsequently enables improvement of Company
competitiveness on both Slovak and European market. The most important investment ventures during
previous year were investments to increase of large castings capacity in FINALCAST Division, increase of
machining capacities in NÁRAĎOVŇA Division and ecological investment to the crystallizing evaporator for
increase of alkali water from sludge bed processing capacity.
Costs and profitability of the Company were positively affected by good negotiation conditions during
negotiations with suppliers, based on payment discipline of the Company.
Generation of reserves for coverage of future costs of sludge bed recovery and alkali water pumping and
treatment had negative impact on economical results. After 2003 and 2004 when reserves for future costs
of this ecological load elimination were generated, in 2005 corrections in these reserves were made on the
basis of expert opinions and measurements and reserves for elimination of ecological risks were increased
by SKK 329 mil.
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4.1. Summary of selected indicators of ZSNP, a.s., divisions and units
Revenues (60*) Economical result from accounting
period
Average employment
level Division
2005 % change
against 20042005
% change against 2004
2005 % change
against 2004
PRODUCTION, in total 2 309 792 th. SKK -16,8% 544 416 th. SKK 64,3% 652 -12,5%
ALUFINAL 853 301 th. SKK -39,7% 449 370 th. SKK 128,9% 185 -37,5%
TUBY 302 978 th. SKK -3,0% 31 844 th. SKK -21,8% 138 6,2%
FINALCAST 467 631 th. SKK 37,8% 84 728 th. SKK 39,4% 199 3,6%
SLOVAL 346 832 th. SKK -4,3% -7 348 th. SKK -43,4% 33 17,9%
VUM 339 050 th. SKK -2,2% -14 178 th. SKK -136,7% 97 -2,0%
SERVICE, in total 458 010 th. SKK -12,3% -197 302 th. SKK 31,9% 300 -29,1%
ADMINISTRATION, in total
95 537 th. SKK -9,9% 1 308 585 th. SKK 1198,5% 140 -20,0%
others -250 th. SKK - -205 th. SKK - 0 -
ZSNP, a.s. 2 863 089 th. SKK -16,4% 1 655 494 th. SKK 1043,5% 1 092 -18,8%
Note:
1.) Item “Service, in total” includes divisions ENERGETIKA, NÁRAĎOVŇA, DOPRAVA, LKV
and ÚDRŽBA.
4.2. Product portfolio of ZSNP, a.s.
In 2005 ZSNP, a.s. had wide product portfolio available. Company used technologies for aluminium
processing and production of carbon materials and provided various services to the internal divisions of the
Company and external subjects making business within its area. From the intents of owners to support
separately individual production units or transform them to separate legal subjects and to provide
development of such subjects to make them attractive for potential investor from the area of their activities
the following important organizational changes resulted:
The following activities were separated from the product portfolio of ZSNP, a.s.:
- Production of aluminium profiles in ALUFINAL Division, transferred to the joint-stock company
Alufinal, a.s., (Sapa Profily a.s.),
- Production of carbon materials, provided in VUM Division, incorporated to the joint-stock company
VUM, a.s.
Product portfolio of one of the service divisions – Náraďovňa a Údržba Division – was divided to 2
organizational units:
- Designing and production of tools for casting technologies and aluminium hot and cold pressing
technologies is provided in NÁRAĎOVŇA Division and
- Maintenance activities provided in ÚDRŽBA Division.
For share of core product groups on total revenues in 2005 in ZSNP, a.s. see chart below:
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Revenues According to Main Product Groups
Energies12%
Carbon Materials12%
Aluminium Alloys12% Aluminium Castings
16%
Aluminium Extruded Profiles
30%
Aluminium and Laminat Tubes11%
Other7%
Aluminium extruded profiles – Alufinal, a.s.
Up-to-date technologies for aluminium processing include extrudion enabling forming of various profile shapes. Wide assortment of aluminium extruded profiles manufacture in Alufinal, a.s. included over 7.000 various shapes for machine, electrotechnical, automotive and furniture industry, for building industry, transport, sport and leisure time. Higher added value was reached for “customized” drawing profiles for particular customer. Alufinal, a.s. offered also progressive technologies for surface treatment, such as anodic oxidation and powder coating to satisfy various requirements for esthetic appearance and to provide higher level of anticorrosive protection even in demanding outdoor environment. Assortment of production included also production of drawn aluminium tubes.
Aluminium and laminate tubes – TUBY DIVISION
In comparison with competitive materials aluminium packing materials offer several specific advantages.
These materials have high level of resistance against corrosion and provide impermeable metal barrier
against light, UV radiation, steam, fat substances, oxygen and microorganisms. Very important advantage is
recyclability. Aluminium tubes, fine metal packages for pasty products and fine viscous liquids, representing
70% of production in TUBY Division are used for packing of products in cosmetic, food, pharmaceutical and
chemical industry. Because of increasing market demand assortment of TUBY Division was extended with
production of laminate tubes. Finer structure of material used for production predestines this material for
packing of fills with higher content of volatile substances, especially cosmetic products. Since 2004
aluminium and laminate tubes are sold under trademark TUBAPACK.
Product Mix
Other16%
Drawing Al Profiles
29%
Standard Al Profiles
55%
Reveues and Export Trends
(in thousands SKK)
0200 000400 000600 000800 000
1 000 0001 200 0001 400 0001 600 000
2001 2002 2003 2004 2005
Revenues Export
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Aluminium castings – FINALCAST DIVISION
Continuously increasing demands of the modern society require technically improved products. Within the
industry requirements for light components permanently providing high resistance and accuracy dominate.
In these terms aluminium castings play increasing role. ZSNP, a.s. has two technologies for casting
manufacture of aluminium alloys available. Majority of production is provided by gravity die casting
technology with basic advantage in flexibility enabling production of casting with complex shapes and
complex internal shapes. The next technology is low pressure die casting, used in production of large-size
castings with increased requirements for dimensions and weight. The core production program includes
castings used as components for production of F-heads, bodies of gasmeters, coolers for trucks, el.
distribution parts of compressors, etc. Product portfolio of this Plan includes also various services, such as
heat treatment.
Aluminium castings – SLOVAL DIVISION
Casting alloys manufacture in SLOVAL Division represent key input raw material for production of aluminium
castings. Specific requirements of customers for utility properties of the products are satisfied by individual
chemical composition of manufactured alloys. Assortment of ZSNP, a.s. SLOVAL Division includes
secondary aluminium alloys, primary aluminium alloys and aluminium pre-alloys.
Product Mix
Aluminium Tubes70%
Laminate Tubes30%
Reveneues and Export Trends
(in thousands SKK)
0
100 000
200 000
300 000
400 000
2001 2002 2003 2004 2005
Revenues Export
Product Mix
Other23%
Gravity Die Casting
68%
Low Pressure Die Casting
9%
Revenues and Exprot Trends(in thousands SKK)
0
100 000
200 000
300 000
400 000
500 000
2001 2002 2003 2004 2005
Revenues Export
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Carbon materials – VUM, a.s.
Basic products of VUM, a.s. included anode material intended for manufacturers of primary aluminium,
electrode materials for manufacturers of various types of ferroalloys, metal silicon and calcium carbide.
Assortment also included various types of stamping masses used for repairs of electrolysis and arc el.
furnaces and calcined materials used as carburizers and frothing material.
Energies – ENERGETIKA Division
ENERGETIKA Division is one of the most important power engineering complex in the region of Žiar nad
Hronom with focus on energy supplies.
This Division provides thermal energy, el. energy, compressed air, natural gas, industrial water, drinking
water and discharge and treatment of waste water for internal divisions of ZSNP, a.s. and external subjects
making business within the area of ZSNP, a.s. and adjacent subjects.
OTHER DIVISIONS
Náraďovňa Division
NÁRAĎOVŇA Division was established through the concentration of tool-making capacities of ZSNP, a.s. to
strengthen competitive advantage of core productions and to effective use the same. Production of various
tools, moulds and instruments provided by this divisio is intended mainly for aluminium casting and pressing
technology.
Product Mix
Secondary Alloys68%
Primary Alloys27%
Pre-Alloys5%
Revenues and Export Trends
(in thousands SKK)
0
100 000
200 000
300 000400 000
500 000
600 000
700 000
2001 2002 2003 2004 2005
Revenues Export
Produktový mix
Upsetting Paste1%
Electrode Paste59%Anode Paste
25%
Calcinated Material
3%
Other12%
Revenues and Export Trends
(in thousands SKK)
050 000
100 000150 000200 000250 000300 000350 000400 000
2001 2002 2003 2004 2005
Revenues Export
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Údržba Division
In respect to its technical and coordination capacities ÚDRŽBA Division provides maintenance activities
oriented mainly to provision of service activities for Divisions of ZSNP, a.s. and for external companies
making business within the Company area.
Doprava Division
DOPRAVA Division provides services connected with railway transport. These include provision of transport
on ZSNP, a.s. siding, rental of railway carriages and service of railway carriages and engines.
LKV Division
LKV Division deals with activities connected with elimination of historical environmental loads. These
activities include administration and maintenance of sludge bed and treatment and processing of alkali
water. These are ineffective activities without any economical gain for the Company.
INDUSTRIAL WASTE STOCK-PILE
Since 1998 ZSNP, a.s. operates INDUSTRIAL WASTE STOCK-PILE used for safe disposal of waste resulting
not only from operation of the Company but also from foreign waste generators.
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5. Information on development of activities and
financial situation of ZSNP, a.s.
5.1. Main indicators
MU 2003 2004 2005
Revenues (60*) Th. SKK 3 745 647 3 424 674 2 863 089
Of it: Export Th. SKK 1 321 488 1 403 738 1 205 962
Value added Th. SKK 1 088 617 894 631 690 230
Economical results from economical activities Th. SKK -133 523 -100 978 257 914
Personnel costs Th. SKK 667 636 479 850 409 684
Economical result for accounting period Th. SKK -10 258 144 776 1 655 494
Stocks Th. SKK 282 282 428 067 244 666
Long-term and short-term receivables Th. SKK 618 827 714 303 1 415 087
Long-term and short-term payables Th. SKK 1 595 386 1 674 707 1 100 828
Production Th. SKK 3 627 417 3 442 369 2 797 595
Investments Th. SKK 202 460 210 269 148 975
Wage funds without OPC Th. SKK 448 420 342 928 296 519
Average wages SKK 19 262 21 241 22 634
Average employment level Persons 1 940 1 345 1 092
Productivity from added value for wages without OPC
2,43 2,61 2,33
Productivity from added value per employee and month
46,76 55,43 52,67
5.2. Statement of finances
Statement of finances was fully audited by auditing company Ernst & Young Slovakia, spol. s r.o., Bratislava
and it is enclosed in Annex as integral part of this Annual report.
BALANCE SHEET
By December 31, 2005 value of asset and resources for asset coverage increased by SKK 1.421.971.000 in
comparison with December 31, 2004. The following changes occurred in the property structure:
Assets
A/ Value of long-term assets increased by SKK 290.145.000, with long-term financial assets increase by SKK
652.152.000 and long-term tangible assets decrease by SKK 363.168.000 and long-term intangible assets
increase by SKK 1.160.000. The following factors significantly affected movement of long-term assets:
• Accounting of depreciations in amount of SKK 156.554.000,
• Property investment to Alufinal, a.s., (Sapa Profily a.s.) in depreciated value of SKK 187.543.000,
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• Balance of generation and accounting of adjusting entries for long-term assets – for both, property
planned by the Company for sale and unused property – decreased by SKK 151.108.000,
• Accounting of long-term tangible and intangible assets sale SKK 261.765.000.
The reasons of long-term financial assets increase included:
• Increase of share bonds in the controlled subject by SKK 716.880.000 connected with increase of
investment in kind in the subsidy Enviroservis, a.s. and constitution of new company Alufinal, a.s.,
(Sapa Profily a.s.) with acquisition of 100% share in TEPLO, s.r.o. and sale of subsidies ALUFINAL
Praha, s.r.o. and ALUPA, s.r.o., subsidy of Alufinal, a.s., (Sapa Profily a.s.) and sale of business share
in the subsidy VUM, a.s., to Nemecko – slovenska obchodná spoločnosť, s.r.o.,
• Generation of adjusting entry against ZSNP FOUNDRY, a.s. in amount of SKK 53.530.000 because
of expected loss from company sale.
B/ Company short-term assets increased by SKK 1.170.858.000. The main factors of this increase were
long-term receivables by SKK 798.608.00 and financial accounts by SKK 653.475.000 together with stock
level decrease by SKK 183.401.000 and long-term receivables decrease by SKK 97.823.000.
The reasons of short-term assets increase included:
• Material stock level decrease by SKK 183.401.000, mainly as result of separation of ALUFINAL
Division and VUM Division as separate organizational units.
• Long-term receivables decrease by SKK 97.823.000 was affected especially by decrease of deferred
tax receivable and decrease of receivables from commercial relation.
• Increase of short-term receivables by SKK 798.608.000 was connected with provision of short-term
loans for PENTA INVESTMENTS LIMITED in amount of SKK 300.000.000, to ZSNP FOUNDRY, a.s.
in amount of SKK 67.000.000 and to AVC, a.s. in amount of SKK 7.000.000 and from creation of
receivables resulting from asset sale to the subsidies Alufinal, a.s. (Sapa Profily a.s.) in amount of
SKK 394 mil., ZSNP RECYKLING, s.r.o. in amount of SKK 36 mil. and VUM a.s. in amount of SKK
126 mil.
C/ Costs of future periods decreased by SKK 39.032.000 because of accounting of leasing operations
(together with decrease of long-term payables).
Liabilities
A/ Fixed assets – increase in comparison with previous period resulted especially from increase of valuation
differences from capital shares connected with accounting of valuation difference resulting from investment
in kind to Alufinal, a.s., (Sapa Profily a.s.) and Enviroservis, s.r.o. – balance of generation and accounting of
valuation differences is SKK 428.886.000.
Accounting of valuation differences from re-valuation of property and payables includes especially
accounting of year-end exchange rate differences for term deposits with fixed exchange rate in amount of
SKK 17.532.000. Purchase of own shares from minor shareholders resulted in increase of own shares value
by SKK 4.437.000.
Acc. to the resolution of General Assembly dated June 17, 2005 on distribution of reached profit from 2004
value of statutory reserve fund was increased by SKK 14.477.000 and undistributed profit from previous
years increase by SKK 130.298.000.
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B/ Payables – decrease by SKK 722.352.000 resulted from decrease of short-term payables by SKK
357.438.000, long-term payables by SKK 216.441.000, bank credits by SKK 407.358.000 and increase of
reserves by SKK 258.885.000.
The main reason for decrease of short-term and long-term payables was settlement of payable against
Slovenská konsolidačná, a.s. in amount of SKK 1.110.873.000 against compensation in amount of SKK
115.000.000 SKK (On April 6, 2005 ZSNP, a.s. and SOLEMMY FINANCIAL LIMITED („SOLEMMY“) signed
contract on assumption of debt, Slovenská konsolidačná, a.s. approved debt assumption by SOLEMMY on
June 14, 2005) together with increase of payables resulting from purchase of emission quotas of CO2 in
amount of SKK 628.082.000.
Main factors affecting movement of reserves included:
• Increase of reserve for sludge bed by SKK 329.124.000 as result of update of expected costs of
covering, recovery and treatment of alkali water together with accounting of reserve in amount of
SKK 132.144.
• Increase of statutory reserves by SKK 82.241.000, with major item including generation of reserve
for CO2 emission quotas in amount of SKK 78.136.000 (reserve was generated on the basis of
expert opinion connected with actually released emissions in 2005).
C/ Revenues of future periods – Increase by SKK 63.186.000 affected by the balance of non-consumed part
of allocated emission quotas in amount of SKK 64.958.000.
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BALANCE SHEET
(In thousands SKK)
By
31.12.2003
By
31.12.2004
By
31.12.2005
ASSETS, IN TOTAL 4 754 302 4 934 020 6 355 991
Long-term assets 3 661 883 3 630 026 3 920 171
Long-term intangible and tangible assets 1 722 877 1 645 172 1 283 164
Long-term financial assets 1 939 006 1 984 854 2 637 007
Short-term assets 958 644 1 256 066 2 426 924
Stocks 282 282 428 067 244 666
Long-term receivables 107 481 103 007 5 184
Short-term receivables 511 346 611 296 1 409 903
Financial accounts 57 535 113 696 767 171
Accruals 133 775 47 928 8 896
LIABILITIES, IN TOTAL 4 754 302 4 934 020 6 355 991
Fixed assets 1 345 445 1 692 252 3 773 389
Fixed assets 1 273 617 1 273 617 1 269 180
Capital funds -124 298 -119 455 310 626
Funds from profit - - 14 477
Profit from previous years 206 384 393 314 523 612
Economical result of accounting period -10 258 144 776 1 655 494
Payables 3 394 810 3 219 011 2 496 659
Reserves 1 028 424 1 136 946 1 395 831
Long-term payables 603 524 424 468 208 027
Short-term payables 991 862 1 250 239 892 801
Bank credits and accommodation 771 000 407 358 0
Accruals 14 047 22 757 85 943
- 21 -
PROFIT-AND-LOSS STATEMENT
In 2005 Company achieved significantly better economical result in comparison with 2004 as result of
achieved results from economical and financial activities.
Achieved economical result for accounting period – profit in amount of SKK 1.655.494 th. is result of
continuing restructuralization of individual activities of the Company.
Achieved economical results from economical activities – profit in amount approx. SKK 258 mil. as result of
rationalization actions in Company economy, positively affected by revenues on level comparable with
previous year (increase by 1% by comparable structure of divisions) together with reduction of material
consumption (production consumption/ revenues) by 2,5% as result of consistent management of purchase,
decrease of personnel costs especially as result of deposit and sale of property of ALUFINAL and VUM
Divisions by almost 15%, lower generation of adjusting entry for receivables resulting from consistent
management of the same and increase of other operation revenues (assignment of payables of ALUFINAL
Division to Alufinal, a.s. in amount of SKK 195.409.000) and continuing generation of reserves for
elimination of consequences of environmental pollution (especially recovery of sludge bed).
Positive economical result from financial activities was affected especially by dividends received from the
subsidy Slovalco, a.s. – SKK 677.950.000, accounting of settlement of payable against Slovenská
konsolidačná, a.s. – SKK 995.873.000, revenue from realized hedging trades – SKK 15.846.000 and lower
interest load resulting from lower credit load.
ZSNP, a.s. purchased 20.171 pcs of own shares from minor shareholders. Company didn’t acquire shares,
temporary sheets and business shares of controlling subject (parent accounting entity) in acc. with § 66a of
the Commercial Code.
ZSNP, a.s. had no costs connected with activities in the area of research and development.
- 22 -
PROFIT-AND-LOSS STATEMENT
(In thousands SKK) By 31.12.2003 By 31.12.2004 By 31.12.2005
Revenues from sale of won products and services
3 664 977 3 342 301 2 812 568
Change in internal stocks level -117 003 35 968 -55 638
Activation 79 443 64 100 40 665
Production 3 627 417 3 442 369 2 797 595
Revenues from goods sale 80 670 82 373 50 521
Costs of sold goods procurement 53 760 63 049 41 074
Commercial margin 26 910 19 324 9 447
Consumption of non-stored material, energy and other supplies
2 297 128 2 287 392 1 856 722
Services 268 582 279 670 260 090
Production consumption 2 565 710 2 567 062 2 116 812
Value added 1 088 617 894 631 690 230
Personnel costs 667 636 479 850 409 684
Depreciations of long-term intangible and tangible property
186 519 167 115 156 554
Generation of reserves and adj. entries 1 215 870 522 473 449 345
Accounting of reserves and adj. entries 1 245 215 267 437 454 038
Other operation costs 868 891 481 456 927 813
Other operation revenues 471 561 387 848 1 057 042
Economical result from economical
activities -133 523 -100 978 257 914
Financial costs 414 563 173 154 135 714
Financial revenues 622 068 419 905 1 765 660
Economical result from financial activities 207 505 246 751 1 629 946
Extraordinary costs 930 100 998 -
Extraordinary revenues 42 406 127 513 -
Economical result from extraordinary
activities 41 476 26 515 -
Income tax
- Due 8 408 64 152 83 529
- Deferred 117 308 -36 640 148 837
Income tax, in total 125 716 27 512 232 366
Economical result from accounting period -10 258 144 776 1 655 494
- 23 -
5.3. Supervisory Board’s statement to the due individual statement of finances 2005 and proposal
for settlement of economical result 2005
Board of Directors of ZSNP, a.s. submitted to the Supervisory Board due individual statement of finances
and proposal for distribution of profit from 2005.
In 2005 ZSNP, a.s. achieved profit in amount of SKK 1.655.493.916,23.
Board of Directors of ZSNP, a.s. proposes to distribute profit in amount of SKK 1.655.493.916,23 as follows:
- Statutory contribution to the reserve fund in amount of 10%, i.e. SKK 165.549.391,62.
- Transfer of part of profit in amount of SKK 1.489.944 524, 61 to the account 428 – Undistributed
profit from previous years.
- Payment of loss from previous years from undistributed cumulated profit from previous years (by
December 31, 2003) in amount of SKK 49.090.356,04.
Due individual statement of finances was audited by auditor:
Ernst & Young Slovakia, spol. s r.o., Bratislava
On the basis of rights and obligations resulting from Commercial Code and Statute of ZSNP, a.s. Žiar nad
Hronom Supervisory Board reviewed due individual statement of finances and proposal for distribution of
profit of ZSNP, a.s. and recommends to the General Assembly
To approve
1. Due individual statement of finances 2005,
2. Distribute profit acc. to the proposal submitted by Board of Directors.
Dr.h.c. Ing. Jozef Pittner, PhD. BD Chairman
- 24 -
5.4. Significant events which occurred after the end of 2005
Significant events which occurred after expiration of period for which this Report was prepared include:
- On January 2, 2006 Company withdrawn credit in amount of SKK 960 mil.,
- On January 2, 2006 Company sold 100% of shares of Alufinal, a.s. to Sapa AB, place of seat Stockholm, Sweden on the basis of Contract on sale,
- On January 30, 2006 Company sold 100% of ZSNP FOUNDRY, a.s. to Fagor Ederlan, place of seat Eskoriatza, Spain on the basis of Contract on sale,
- On January 31, 2006 Company sold 883.000 tons of emission quotas to Paroplynový cyklus, a.s., Bratislava (Commissioner) on the basis of Commission contract on emission quotas sale (dated January 5, 2006),
- Transformation of ZSNP RECYKLING, s.r.o. to the joint-stock company and subsequent sale of 100% of shares,
- On April 1, 2006 Company sold stocks of TUBY Division to TUBAPACK, increased fixed assets of this Company by investment in kind (movable property and real estate) and subsequently TUBY Division was dissolved.
5.5. Information on expected development of ZSNP, a.s. in 2006
Main indicators of expected development of ZSNP, a.s. in 2006
MU Actual
2005
Plan
2006 % change
Revenues (60*) Th. SKK 2 863 089 1 337 024 -53,30%
Value added Th. SKK 690 230 337 159 -51,15%
Economical results from economical activities Th. SKK 257 914 190 300 -26,22%
Personnel costs Th. SKK 409 684 268 256 -34,52%
Economical result for accounting period Th. SKK 1 655 494 437 818 -73,55%
Stocks Th. SKK 244 666 180 051 -26,41%
Long-term and short-term receivables Th. SKK 1 415 087 98 496 -93,04%
Long-term and short-term payables Th. SKK 1 100 828 329 797 -70,04%
Production Th. SKK 2 797 595 1 348 268 -51,81%
Investments Th. SKK 148 975 260 075 74,58%
Productivity from added value for wages 2,33 1,74 -25,39%
Productivity from added value per employee and month
52,67 47,70 -9,44%
Preparation of business and financial plan for 2006 was preceded by defining and approval of strategies for
individual strategic business units, i.e. divisions. Since 2004 all business units of ZNSP, a.s. have own
strategies and strategic development objectives for next three years defined. Strategies are updated every
year to extend them to the next year, continuous check of fulfillment and incorporation of changes resulting
from new situation in market environment. With the above strategy business and financial plan including
procedures for the next year for achievement of strategic objectives is connected. Detail internal and
- 25 -
external analyses prepared within the scope of strategies showed weak spots and strengths, opportunities
and threats. The above enabled focus on utilization of strengths and market opportunities and maximum
possible elimination of weak spots and avoidance of eventual threats in the individual plans. Business and
financial plan of each business unit was prepared as complex material, including sales plan, production plan,
investment and personnel plan, raw material purchase plan, plan of marketing activities, etc.
The above main indicators of expected development result from partial indicators defined at the level of
production and service divisions. These main indicators of expected development are based on knowledge
of situation on particular markets and defined development needs of individual business units.
Planned decrease of revenues and profit from economical activities in comparison with results achieved in
2005 results especially from transformation of ALUFINAL Division to Alufinal, a.s. and subsequent sale to
the strategic investor – Swedish company SAPA AB. Revenues of ALUFINAL DIVISIONS represented up to
30% of total revenues of ZSNP, a.s..
The above plan includes also separation of TUBY Division (constitution of separate company TUBAPACK,
a.s.) since April 1, 2005, which in comparison with 2005 means approx. 11% of total revenues of ZSNP, a.s.,
termination of SLOVAL Division operation (12% drop of ZSNP, a.s. revenues) and separation of VUM
Division – transformation to the separate joint-stock company VUM, a.s. – 12% drop in ZSNP, a.s.
revenues).
On the other hand increase in revenues of individual divisions (especially ENERGETIKA and FINALCAST
Division) in 2006 in comparison with 20056 is expected.
Decrease of value added is connected with separation and sale of individual core business divisions of
ZSNP, a.s. which means higher share of economical results of service divisions on total results of the
Company (service divisions are divisions with lower value added).
Economical results in 2005 were positively affected by settlement of payables with Slovenská konsolidačná,
a.s. and payment of dividends by Slovalco, a.s.
In spite of changes in organization structure Company expects additional strengthening of its position on
European market with aluminium products in 2006 with focus on development of casting technologies.
- 26 -
6. Other information
6.1. Human resources and safety
Human resources
Approach to employees in ZSNP, a.s. is based on knowledge of value and importance of human resources.
Human resources development and management is the part of integral system.
The objective is creation of environment supporting individual development of employees, team work and
open corporate culture resulting in fulfillment of strategic objectives, support of optimum social environment
and effective behavior and acting of employees at work.
In 2005:
In the area of employee motivation:
- Company continued in implementation of Corporate culture project, defining principles and
procedures for formation of corporate culture as system of assumptions, values and standards
to be adopted, assumed and developed in ZSNP, a.s. to affect activities, thinking and behavior
of employees.
- Company took actions from results of Employees satisfaction survey project completed in 2004,
e.g. change in supplier of catering services, performance and organization of social evens within
the scope of social program. On the bases of check of hygiene of sanitary facilities and dressing
rooms at the individual divisions reconstruction of facilities in bad condition is under way.
- Company implemented Employees satisfaction survey project – 2nd year. Employee satisfaction
survey is used again especially for determination of evaluations and opinions of employees in
respect to the individual areas of working life, such as informedness and communication within
the Company, social and working relationships in the Company, social welfare, occupational
conditions, stability of employees and identification of employees with the Company. This
Project resulted in actions taken on the basis of answers and remarks of employees. This
Project will be repeated every year.
Company informed ZSNP, a.s. employees through the several information channels. The traditional
source of information is corporate gazette – quarterly Hutník, provided to all employees at the
workplace. Operative and flexible resources of information are noticeboards located at each workplace.
These sources enable provision of all important information on ZSNP, a.s. and on happenings at
particular, individual workplaces. Skull sessions are regular sources of information. Internal Intranet is
effectively used for provision of information included in issued managerial standards and information
provided by the Company spokesman. In addition Intranet includes chat forum as the part of Corporate
culture program. Boxes for suggestions enabling also anonymous notification on faults and asking of
questions to the Company management are additional communication tools.
In the area of development and training Company provided training, re-training and special training for
2.125 employees in the form of:
- Managerial training,
- Basic training and periodic re-training acc. to the legal regulations,
- Training in the area of quality,
- 27 -
- Language training,
- Study during employment,
- Various special trainings, seminaries, conferences and congresses.
Within the scope of development and training of employees Human Resources Development Section
prepared project „Strategy of human resources development, analysis of training requirements and
preparation of training plan and implementation of the same“ in 2004. For this Project non-recoursable
financial contribution from European Social Fund was granted to ZSNP, a.s. in 2005.
The main objective of this Project is improvement of educational level of ZSNP, a.s., employees through the
training activities oriented on development of knowledge, skills and capabilities for performance of job,
usable also on wider labor market – learning organization.
Within the scope of social program SKK 5.450.000 were spent in total and various activities of
employees, their family members and former employees – pensioners were provided, e.g.:
- Recreational and medical trips,
- Medical care and regeneration of labor force (inoculation against flu, carcinologic program),
- Cultural, sport and social events,
- Awards such as Best employee, Birth of child or Blood donor,
- International Children Day, Mother Day, Santa Claus,
- Catering of pensioners,
- Social benefits,
- Supplementary pension insurance.
The objective of the above activities was contribution to the health care of employees and to their cultural,
sport and social life.
Objectives for 2006:
Continuation in introduction of components of corporate culture to achieve positive picture on the
Company in competitive environment.
Provision of actions resulting from Employee satisfaction evaluation project.
Achievement of fulfillment of requirements for positions of employees and provision of personal and
professional growth of employees through the training and improvement of qualification.
Implementation of activities in the area of social welfare.
Implementation of project of European Social Fund “Strategy of human resources development,
analysis of training requirements and preparation of training plan and implementation of the same” co-
financed by EU.
Occupational safety and health
Through the implementation of Occupational safety and health management system, which is the part of
integrated management system quality assumptions for occupational safety and health of employees were
created. Efficiency of this system resulted in reduction of injury rate, number of hazardous workplaces,
- 28 -
occupational sickness absence and minimization of absent days, which is in direct connection with
improvement of work productivity and economic growth.
The most important indicator of work quality in the area of OSH is decreasing number of work injuries and
occupational illnesses, resulting from complex system of OSH care and taking of effective actions. The
above is documented by decrease of injury rate since 2000 from 47 to 5 in 2005. Preventive monitoring of
undesirable events – so called incidents – is introduced to take preventive and corrective actions to avoid
occurrence of such events.
6.2. Integrated management system
ZSNP, a.s. has Integrated Management System (IMS) certified acc. to ISO 9001, ISO 14 001 and OHSAS
18001 introduced in entire company. Re-certification audit, pre-certification and certification audit in 2005
was carried out by the certification TÜV CERT with place of seat in Munich. Our objective is to meet
requirements of customer to increase his satisfaction, to improve efficiency of quality in all areas of
activities, processes and products. Out objective is to show responsible approach to environment, to protect
health of employees and to create conditions for safe work of employees. ZSNP, a.s. classifies
environmental protection as one of its priorities. Our rule is gradual reduction of adverse effects from
production activities and elimination of historic loads from primary aluminium production. We are
responsible for provision of Company development and ecologication both today and in the future.
To meet the above objectives we apply the following policy:
- Achievement of Customers´ satisfaction – which is the credo of our Company – through the
fulfillment of Customers´ requirements in the area of quality, environment and safety to gain
customer’s confidence and strong market position.
- Fulfillment of legislative and other requirements in the area of quality, environment and occupational
safety and health.
- Communication and cooperation with state and self-government authorities responsible for check of
fulfillment of requirements in the area of quality, environment and occupational safety and health.
- To inform all concerned parties, interest groups and company surrounding on strategy, policy,
objectives and achieved results of our Company objectively and regularly.
- To achieve continuous improvement of integrated management system through the preparation and
implementation of improvement programs in the area of quality, environment and occupational
safety and health.
- To improve working activities and control of management systems in all control, executive and
supporting processes through the systematic training and correct motivation of employees.
- To improve Company image through the education of waste volume, pollution prevention, waste
recycling, high quality of products and minimization of environment and working environment
pollution.
- Policy and objectives in the Company are documented, published, implemented, maintained and
regularly verified in term of suitability.
Such defined policy is commitment of ZSNP, a.s. top management to continuously improve efficiency of
integrated management system in all identified processes.
- 29 -
Our objective in 2006 is to confirm fulfillment of requirements of IMS in check audit, i.e. external audit of
IMS acc. to ISO 9001:2000, ISO 14 001:2004, OHSAS 18 001:1999 is waiting ahead.
In the same time we would like to introduce and to certify part of ZSNP, a.s. acc. to ISO/TS 16 949:2002 to
meet requirements for supply of products used in automotive industry.
6.3. Environment
Total emissions of pollutants from whole ZSNP, a.s. Group in 2005 were higher by 130,6t in comparison
with 2004. We can state that current emission situation is stabile, fluctuations of some pollutants result
from production. Continuous monitoring of pollution was provided in limited scope by National Health
Institute in Žiar nad Hronom. Overall air quality in the region Žiar acc. to the pollution index is characterized
as slight pollution.
In spite of fact that production of waste in ZSNP, a.s. in 2005 increased by 12.000 tons in comparison with
2004, volume of recycled waste is higher by almost 200% in comparison with 2004. It means that of total
volume of generated waste 70% was recycled (For comparison: In 2004 only 39% of waste was recycled).
The above data show significant change in position of individual operators to waste disposal and recycling in
2005.
In 2005 technology of alkali water processing was operated in trial operation. In addition, new thickening
evaporator increasing total capacity of alkali water processing from previous 100.000 m3/year to 240.000
m3/year was completed. The above equipment will be commissioned in 2006.
In 2005 project of sludge bed intensively continued by marking up and specification of submitted project.
For this purpose Advisory commission of Managing Director of ZSNP, a.s. was established. Slovak Ministry
of Environment attended first meeting of this Commission. Members of this Commission are specialists in
the area of hydrology, hydrogeology, static, water facility designing and representatives of Slovak Ministry of
Environment. Commencement of recovery works is expected in 2006.
Waste water from ZSNP during 1996-2005
0,000
2,000
4,000
6,000
8,000
10,000
12,000
1994 1996 1998 2000 2002 2004 2006
mil.
m3/
year
- 30 -
Generation of industrial waste from ZSNP during
1996-2005
0
20000
40000
60000
80000
100000
120000
1994 1996 1998 2000 2002 2004 2006
tons
Average annual concentration of pollutants from ZSNP
1998-2005
05
101520253035
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
dust IHr = 60 μg . m-3 SO2 IHr = 60 μg . m-3
NOx IHr = 80 μg . m-3 flourides IHr = 1 μg . m-3
Volume of air pollutants emitted by ZSNP,
1998-2005
0,0500,0
1 000,01 500,02 000,0
2 500,03 000,0
3 500,0
1996 1998 2000 2002 2004 2006
tons
/yea
r
solid matters tars gaseous emissions
- 31 -
7. Annex
A n n e x
To ZSNP, a.s., Annual Report 2005
ZSNP, a.s., Statement of Finances:
- Auditor’s report
- Full Balance sheet
- Full Profit-and-loss statement
- Notes.
Bratislava18 April 2006
Balance Sheet Úč POD 1-01
Month Year Month Year for the period from 0 1 2 0 0 5 to 1 2 2 0 0 5
Financial statements Financial statements*) *)
x - ordinary x - prepared - extraordinary - approved - interim
*) check xIdentification number (IČO)3 0 2 2 2 5 2 4
Legal name (designation) of the accounting entity
Z S N P
Legal form of the accounting entity
A K C I O V Á S P O L O Č N O S Ť
Registered office of the accounting entity, street and number
P R I E M Y S E L N Á 1 2
Zip code Municipality9 6 5 6 3 Ž I A R N A D H R O N O M
Phone area code Telephone number Fax number0 4 5 6 7 2 2 2 0 1 6 7 2 3 7 0 6
Prepared on: Signature of the accounting Signature of the person Signature of the personentity's statutory body responsible for the preparation responsible foror a sole trader who is of the financial statements: bookkeeping:the accounting entity:
Approved on:
Ing. Peter Ondro, člen
18.4.2006
as at 31 December 2005 (SKK '000)
Ing Ján Klimko, člen
Ing. Peter Ondro, člen
Ing. Ján Klimko, člen
Ing. Dária Bubelínyová
ved. odboru UČT
BALANCE SHEET
Preceding
Desig- ASSETS Line accounting
nation b No. period
a c Gross Correction Net Net
1 2 3 4
Total assets line 002 + line 003 + line 032 + line 062 001 9 175 531 2 819 540 6 355 991 4 934 020
A. Receivables related to unpaid share capital (353) 002 0 0 0 0
B. Non-current assets line 004 + line 013 + line 023 003 6 171 762 2 251 591 3 920 171 3 630 026
B.I. Non-current intangible assets - total (lines 005 to 012) 004 53 907 34 550 19 357 18 197
B.I.1. Incorporation expenses (011) - /071, 091A/ 005 0 0 0 0
2. Capitalized development costs (012) - /072, 091A/ 006 0 0 0 0
3. Software (013)-/073, 091A/ 007 48 125 30 294 17 831 10 494
4. Valuable rights (014) - /074, 091A/ 008 556 46 510 0
5. Goodwill (015) - /075, 091A/ 009 0 0 0 0
6. Other non-current intangible assets (019, 01X) - /079, 07X, 091A/
010 4 210 4 210 0 0
7. Acquisition of non-current intangible assets (041) - 093
011 1 016 0 1 016 7 703
8. Advance payments made for non-current intangible assets (051) - 095A
012 0 0 0 0
B.II. Property, plant and equipment - total (lines 014 to 022) 013 3 425 856 2 162 049 1 263 807 1 626 975
B.II.1. Land (031) - 092A 014 251 679 107 824 143 855 136 405
2. Structures (021) - /081, 092A/ 015 1 663 702 1 053 194 610 508 776 146
3.Individual movable assets and sets of movable assets (022) - /082, 092A/
016 1 338 601 909 874 428 727 577 979
4. Perennial crops (025) - /085, 092A/
017 0 0 0 0
5. Livestock(026) - /086,092A/
018 0 0 0 0
6. Other property, plant and equipment(029, 02X, 032) - /089, 08X, 092A/
019 34 622 34 532 90 3 394
7. Acquisition of property, plant and equipment (042) - 094
020 136 802 56 625 80 177 131 132
8.Advance payments made for property, plant and equipment(052) - 095A
021 450 0 450 1 919
9. Value adjustment to acquired assets (+/- 097) +/- 098
022 0 0 0 0
B.III. Non-current financial assets - total (lines 024 to 031) 023 2 691 999 54 992 2 637 007 1 984 854
B.III.1. Shares and ownership interests in a controlled entity (061) - 096A
024 936 156 53 595 882 561 236 211
2. Shares and ownership interests with significant influence over enterprises (062) - 096A
025 1 717 200 0 1 717 200 1 728 200
3. Other long-term shares and ownership interests (063, 065) - 096A
026 0 0 0 0
4. Intercompany loans (066A) - 096A 027 0 0 0 0
5. Other non-current financial assets (067A, 069, 06XA) - 096A
028 21 643 1 397 20 246 203
6. Loans with maturity up to one year (066A,067A,06XA)-096A
029 0 0 0 0
7. Acquisition of non-current financial assets (043) - 096A
030 17 000 0 17 000 20 240
8.Advance payments made for non-current financial assets (053) - 095A
031 0 0 0 0
Current accounting period
Milos Bachar
Čára
Preceding
Desig- ASSETS Line accounting
nation b No. period
a c Gross Correction Net Net
1 2 3 4
Current accounting period
C. Current assets line 033 + line 041 + line 048 + line 056 032 2 994 873 567 949 2 426 924 1 256 066
C.I. Inventory - total (lines 034 to 040) 033 256 700 12 034 244 666 428 067
C.I.1. Raw material (112, 119, 11X) - /191, 19X/ 034 160 294 11 229 149 065 289 118
2. Work in progress and semi-finished products (121, 122, 12X) - /192, 193, 19X/
035 44 078 789 43 289 67 313
3. Construction contracts where the expected time of completion exceeds one year 12X-192A
036 0 0 0 0
4. Finished goods (123) - 194 037 34 203 0 34 203 63 012
5. Animals (124) - 195 038 0 0 0 0
6. Merchandise (132, 13X, 139) - /196, 19X/ 039 17 974 0 17 974 8 454
7. Advance payments made for inventory (314A) - 391A
040 151 16 135 170
C.II. Non-current receivables - total (lines 042 to 047) 041 5 184 0 5 184 103 007
C.II.1. Trade receivables (311A, 312A, 313A, 314A, 315A, 31XA) - 391A
042 5 184 0 5 184 21 995
2. Receivables from a controlled entity and a controlling entity (351A) - 391A
043 0 0 0 0
3. Other intercompany receivables (351A) - 391A
044 0 0 0 0
4. Receivables from participants, members, and association (354A, 355A, 358A, 35XA) - 391A
045 0 0 0 0
5. Other receivables (335A, 33XA, 371A, 373A, 374A, 375A, 376A, 378A) - 391A
046 0 0 0 79
6. Deferred tax asset ( 481 A) 047 0 0 0 80 933
C.III. Current receivables - total (lines 049 to 055) 048 1 965 818 555 915 1 409 903 611 296
C.III.1. Trade receivables (311A, 312A, 313A, 314A, 315A, 31XA) - 391A
049 1 426 221 555 915 870 306 466 494
2. Receivables from a controlled entity and a controlling entity (351A) - 391A
050 432 367 0 432 367 54 314
3. Other intercompany receivables (351A) - 391A
051 0 0 0 42 000
4. Receivables from participants, members, and association (354A, 355A, 358A, 35XA) - 391A
052 0 0 0 0
5. Social security (336) - 391A 053 0 0 0 0
6. Tax assets (341, 342, 343, 345) - 391A 054 85 140 0 85 140 31 652
7.Other receivables (335A, 33XA, 371A, 373A, 374A, 375A, 376A, 378A) - 391A
055 22 090 0 22 090 16 836
C.IV. Financial accounts - total (lines 057 to 061) 056 767 171 0 767 171 113 696
C.IV.1. Cash on hand (211, 213, 21X) 057 295 0 295 288
2. Bank accounts (221A, 22X +/-261) 058 95 957 0 95 957 113 385
3. Bank accounts with notice period exceeding one year 22XA
059 0 0 0 0
4. Current financial assets (251, 253, 256, 257, 25X) - /291, 29X)
060 670 919 0 670 919 23
5. Acquisition of current financial assets (259) - 291
061 0 0 0 0
D. Accruals/deferrals - line 063 and line 064 062 8 896 0 8 896 47 928
D.1. Prepaid expenses (381, 382) 063 8 896 0 8 896 47 928
2. Accrued income (385) 064 0 0 0 0
Control number - total ( lines 001 to 064) 888 36 693 228 11 278 160 25 415 068 19 688 152
Desig- LIABILITIES AND EQUITY Line
nation b No.a c 5 6
Total equity and liabilities line 066 + line 086 + line 116 065 6 355 991 4 934 020
A. Equity line 067 + line 071 + line 078 + line 082 + line 085 066 3 773 389 1 692 252
A.I. Share capital - total (lines 068 to 070) 067 1 269 180 1 273 617
A.I.1. Share capital (411 or +/- 491) 068 1 273 622 1 273 622
2. Own shares and own ownership interests (/-/252) 069 -4 442 -5
3. Change in share capital +/- 419 070 0 0
A.II. Capital funds - total (lines 072 to 077) 071 310 626 -119 455
A.II.1. Share premium (412) 072 0 0
2. Other capital funds (413) 073 0
3. Legal reserve fund (Non-distributable fund) from capital contributions (417, 418)
074 0
4. Differences from revaluation of assets and liabilities (+/- 414)
075 17 532 16 337
5. Investment revaluation reserves (+/- 415) 076 293 094 -135 792
6.Differences from revaluation in the event of amalgamation into a separate accounting entity or demerger (+/- 416)
077 0 0
A.III. Funds created from profit - total (lines 079 to 081) 078 14 477 0
A.III.1. Legal reserve fund (421) 079 14 477 0
2. Non-distributable fund (422) 080 0 0
3. Statutory funds and other funds (423, 427, 42X) 081 0 0
A.IV. Net profit/loss of previous yearsline 083 and line 084 082 523 612 393 314
A.IV.1. Retained earnings from previous years (428) 083 572 702 442 404
2. Accumulated losses from previous years (/-/429) 084 -49 090 -49 090
A.V.Net profit/loss for the accounting period /+-/line 001 - (line 067 + line 071 + line 078 + line 082 + line 086 + line 116)
085 1 655 494 144 776
B. Liabilities line 87 + line 91 + line 102 + line 112 086 2 496 659 3 219 011B.I. Provisions - total (lines 088 to 090) 087 1 395 831 1 136 946
B.I.1. Legal provisions (451A) 088 9 610 7 4042. Other long-term provisions (459 A, 45XA) 089 1 274 886 868 2893. Short-term provisions (323, 32X, 451A, 459A, 45XA) 090 111 335 261 253
Current accounting period
Preceding accounting
period
Milos Bachar
Čára
Desig- LIABILITIES AND EQUITY Line
nation b No.a c 5 6
Current accounting period
Preceding accounting
period
B.II. Non-current liabilities - total (lines 092 to 101) 091 208 027 424 468
B.II.1. Non-current trade liabilities (479A) 092 0 0
2. Unbilled long-term supplies (476A) 093 0 0
3. Non-current liabilities to a controlled entity and a controlling entity (471A)
094 0 0
4. Other non-current intercompany liabilities (471A) 095 0 05. Long-term advance payments received (475A) 096 0 0
6. Long-term bills of exchange to be paid (478A) 097 0 7 265
7. Bonds issued (473A/-/255A) 098 0 0
8. Liabilities related to social fund (472) 099 5 452 5 980
9. Other non-current liabilities (474A, 479A, 47XA, 372A, 373A, 377A)
100 115 392 411 223
10. Deferred tax liability (481A) 101 87 183 0
B.III. Current liabilities - total (lines 103 to 111) 102 892 801 1 250 239
B.III.1. Trade liabilities (321, 322, 324, 325, 32X, 475A, 478A, 479A, 47XA)
103 809 182 428 584
2. Unbilled supplies (326, 476A) 104 13 576 14 356
3. Liabilities to a controlled entity and a controlling entity (361A, 471A)
105 0 0
4. Other intercompany liabilities (361A, 36XA, 471A, 47XA)
106 0 0
5. Liabilities to partners and association (364, 365, 366, 367, 368, 398A, 478A, 479A)
107 4 522 0
6. Liabilities to employees (331,333,33X,479A) 108 12 848 15 608
7. Liabilities related to social security (336, 479A) 109 11 467 14 163
8. Tax liabilities and subsidies (341, 342, 343, 345, 346, 347, 34X)
110 20 982 66 759
9. Other liabilities (372A, 373A, 377A, 379A, 474A, 479A, 47X) 111 20 224 710 769
B.IV. Bank loans and financial assistance - total (lines 113 to 115) 112 0 407 358
B.IV.1. Long-term bank loans (461A, 46XA) 113 0 349 164
2. Current bank loans (221A, 231, 232, 23X, 461A, 46XA) 114 0 58 194
3. Short-term financial assistance (241, 249, 24X, 473A,/-/255A)
115 0 0
C. Accruals/deferrals - total (lines 117 and 118) 116 85 943 22 757
C.1. Accrued expenses (383) 117 0 0
2. Deferred income (384) 118 85 943 22 757
Control number - total (lines 065 to 118) 999 23 682 527 19 568 547
Income Statement Úč POD 2-01
Month Year Month Year for the period from 0 1 2 0 0 5 to 1 2 2 0 0 5
Financial statements Financial statements*) *)
x - ordinary x - prepared - extraordinary - approved - interim
*) check xIdentification number (IČO)3 0 2 2 2 5 2 4
Legal name (designation) of the accounting entity
Z S N P
Legal form of the accounting entity
A K C I O V Á S P O L O Č N O S Ť
Registered office of the accounting entity, street and number
P R I E M Y S E L N Á 1 2
Zip code Municipality9 6 5 6 3 Ž I A R N A D H R O N O M
Phone area code Telephone number Fax number0 4 5 6 7 2 2 2 0 1 6 7 2 3 7 0 6
Prepared on: Signature of the accounting Signature of the person Signature of the personentity's statutory body responsible for the preparation responsible foror a sole trader who is of the financial statements: bookkeeping:the accounting entity:
Approved on:
ved.odboru UČT
Ing. Dária Bubelínyová
as at 31 December 2005 (SKK '000)
18.4.2006
Ing. Peter Ondro, člen
Ing. Ján klimko, člen
Ing. Peter Ondro, člen
Ing. Ján Klimko, člen
INCOME STATEMENT
Desig-nation Text Line
No. Current accounting period Precedingaccounting period
a b c 1 2
I. Revenue from the sale of merchandise (604) 01 50 521 82 373
A. Cost of merchandise sold ( 504) 02 41 074 63 049
+ Trade margin line 01- line 02 03 9 447 19 324
II. Production line 05 + line 06 + line 07 04 2 797 595 3 442 369
II.1. Revenue from the sale of own products and services (601, 602)
05 2 812 568 3 342 301
2. Changes in internal inventory( +/- account group 61)
06 -55 638 35 968
3. Own work capitalized (account group 62) 07 40 665 64 100
B. Production line 09 + line 10 08 2 116 812 2 567 062
B.1.Consumed raw materials, energy consumption, and consumption of other non-inventory supplies (501, 502, 503)
09 1 856 722 2 287 392
2. Services (account group 51) 10 260 090 279 670
+ Added value line 03 + line 04 -line 08 11 690 230 894 631
C. Personnel expenses total (lines 13 to 16) 12 409 684 479 850
C.1. Wages and salaries (521, 522) 13 301 736 349 187
2. Remuneration of board members of company or cooperative (523)
14 1 347 1 536
3. Social security expenses (524, 525, 526) 15 86 278 100 422
4. Social expenses (527, 528) 16 20 323 28 705
D. Taxes and fees (account group 53) 17 16 999 17 176
E. Amortization of non-current intangible assets and depreciation of property, plant and equipment (551)
18 156 554 167 115
III. Revenue from the sale of non-current assets and raw materials (641, 642)
19 559 440 308 578
F. Carrying value of non-current assets sold and raw materials sold (541, 542)
20 585 185 323 670
IV.Use and reversal of provisions against operating income and accounting for complex deferred expenses (652, 654, 655)
21 181 083 118 931
G. Creation of provisions for operations and accounting for complex deferred expenses (552, 554, 555)
22 361 831 461 556
V. Use and reversal of value adjustments against operating income (657, 658, 659)
23 272 955 148 506
H. Creation of value adjustments against operating expenses (557,558,559)
24 87 514 60 917
VI. Other operating income (644, 645, 646, 648) 25 497 602 79 270
I. Other operating expenses (543 to 546, 548, 549) 26 325 629 140 610
VII. Transfer of operating income (-) (697) 27 0 0
J. Transfer of operating expenses (-) (597) 28 0 0
*Profit/loss from operations line 11 - line 12 - line 17 - line 18 + line 19 - line 20 + line 21 - line 22 + line 23 - line 24 + line 25 - line 26 + (-line 27) - (-line 28)
29 257 914 -100 978
Actual data
Desig-nation Text Line
No. Current accounting period Precedingaccounting period
a b c 1 2
Actual data
VIII. Revenue from the sale of securities and shares (661) 30 5 625 20 752
K. Securities and shares sold (561) 31 5 364 50 093
IX. Income from non-current financial assets line 33 + line 34 + line 35
32 684 255 297 685
IX.1.Income from securities and ownership interests in a controlled entity and in a company where significant influence is held (665A)
33 684 255 297 685
2. Income from other long-term securities and shares (665A)
34 0 0
3. Income from other non-current financial assets (665A) 35 0 0
X. Income from current financial assets (666) 36 0 0
L. Expenses related to current financial assets (566 ) 37 0 0
XI. Gains on revaluation of securities and income from derivative transactions (664, 667)
38 17 849 1 200
M. Loss on revaluation of securities and expenses related to derivative transactions (564, 567)
39 2 001 0
XII. Interest income (662) 40 17 595 9 421
N. Interest expense (562) 41 17 217 66 232
XIII. Exchange rate gains (663) 42 41 704 39 090
O. Exchange rate losses (563) 43 38 149 31 505
XIV. Other income from financial activities (668) 44 998 432 10 727
P. Other expenses related to financial activities (568, 569) 45 19 454 25 286
XV. Use and reversal of provisions against income from financial activities (674)
46 0 0
Q. Creation of provisions for financial activities (574) 47 0 0
XVI. Use and reversal of value adjustments against income from financial activities (679)
48 200 41 030
R. Creation of value adjustments against expenses related to financial activities (579)
49 53 529 38
XVII. Transfer of financial income (-) (698) 50 0 0
S. Transfer of financial expenses (-) (598) 51 0 0
*
Profit/loss from financial activities line 30 - line 31 + line 32 + line 36 -line 37 + line 38 - line 39 + line 40 - line 41 + line 42 - line 43 + line 44 - line 45 + line 46 - line 47 + line 48 - line 49 + (-line 50) - (- line 51)
52 1 629 946 246 751
T. Income tax on ordinary activities line 54+ line 55 53 232 366 22 474
T.1. - current (591,595) 54 83 529 59 114
2. - deferred (+/-592) 55 148 837 -36 640
** Profit/loss from ordinary activities line 29 + line 52 - line 53
56 1 655 494 123 299
XVIII. Extraordinary income (account group 68) 57 0 127 513
U. Extraordinary expenses (account group 58) 58 0 100 998
V. Income tax on extraordinary activities line 60 + line 61
59 0 5 038
V.1. - current (593) 60 0 5 038
2. - deferred (+/- 594) 61 0 0
* Profit/loss from extraordinary activities line 57 - line 58 - line 59
62 0 21 477
Z. Transfer of net profit/net loss shares to partners (+/-596)
63 0 0
*** Profit/loss for the accounting period (+/-) line 56 + line 62 - line 63
64 1 655 494 144 776
Control number total (lines 01 to 64) 99 22 733 455 17 473 872
- I -
Notes to the Statement of Finances by December 31, 2005
A. INFORMATION ON ACCOUNTING ENTITY
1. Business name and place of seat:
ZSNP, a.s. Priemyselná 12 965 63 Žiar nad Hronom ZSNP, a.s. (Hereinafter referred to as Company) was established on August 6, 1991 and registered with Commercial register on August 16, 1991 (Commercial Register, District Court Banská Bystrica in Banská Bystrica, Sect. Sa, Insertion No. 25/S).
2. Core activities of the Company:
– Manufacture of pressure castings of aluminium alloys and other non-ferrous metals and processing of the same,
– Processing of aluminium and copper alloys and other non-ferrous metals and wastes, – Heat treatment of aluminium alloys and impregnation, – Manufacture of casting tools (molds, moulds, cores), models and wooden products, – Steel refining and quenching, – Manufacture of sand castings of aluminium alloys and other non-ferrous metals and processing of
the same – Manufacture, sale and installation of metallurgical products of aluminium and aluminium alloys, – Manufacture and sale of aluminium-iron ropes and sector ropes, – Manufacture of tools and components, – Surface finish of metals, – Manufacture and sale of calcined anthracite, calcined tar coke and carbon materials, – Designing of technical equipment for constructions, – Trade procurement, wholesale – purchase and sale of goods within the scope of free trade,
promotion and advertising activities, marketing services, marketing and commercial counseling, – Operation of tracks – siding operation activity, – Automatic data processing, provision of software, designing, installation and maintenance of
computing equipment and computer networks, procuring and counseling activities in the area of computing and measuring equipment,
– Provision of special activities and courses for employees, – Fire prevention, repression, replenishment and revisions of extinguishers, – Enterprising in the area of waste disposal, – Heat and electricity generation, electricity and heat distribution, – Gas supplies, gas distribution.
3. Average number of employees
Average number of employees in the Company in 2005 was 1.092 employees – 50 executive employees (In 2004 – 1.345 including 49 executive employees).
4. Legal reason for statement of finances preparation
Statement of finances of the Company by December 31, 2005 was prepared as due statement of finances acc. to § 17, Sect. 6 of NR SR Act No. 431/2002 St. On accounting for accounting period from January 1, 2005 till December 31, 2005.
5. Date of Statement of finances for previous accounting period approval
Statement of finances of the Company for previous accounting period was approved by the General assembly of the Company on June 17, 2005.
- II -
B. INFORMATION OF ACCOUNTING ENTITY BODIES
Till June 16, 2005: Board of Directors: Dr.h.c. Ing. Jozef Pittner, chairman Ing. Jozef Špirko, member Mgr. Jozef Oravkin, member Ing. Eduard Maták, member Ing. Peter Ondro, member Supervisory board: Dr.h.c. Ing. Jozef Uhrík, Csc. chairman Ing. Peter Vaško, member Pavol Kúš, member elected by employees Since June 17, 2005: Board of Directors: Ing. Jozef Špirko, chairman Mgr. Jozef Oravkin, member Ing. Peter Ondro, member Ing. Ján Klimko, member Supervisory board: Dr.h.c. Ing. Jozef Pittner, PhD, chairman Dr.h.c. Ing. Jozef Uhrík, Csc., member Pavol Kúš, member elected by employees.
C. INFORMATION OF ACCOUNTING ENTITY ASSOCIATES
Associate name Fixed assets share
Thousands SKK %
Penta Investments Limited 1 223 314 96,05 Physical bodies 50 308 3,95
In total 1 273 622 100,00
D. INFORMATION ON CONSOLIDATED UNIT
Statement of finances of the Company is included in the consolidated statement of finances of Penta Investments Limited, place of seat 28th October Street, No. 319, Kanika Business Center, 2nd floor, 3105 Limassol, Cyprus and this Statement is the part of consolidated statement of finances of Penta Holding Limited, place of seat 28th October Street, No. 319, Kanika Business Center, 2nd floor, 3105 Limassol, Cyprus. The above consolidated statements of finances are available directly at the places of seat of given companies.
E. INFORMATION ON ACCOUNTING PRINCIPLES AND ACCOUNTING METHODS (a) Basis for Statement of finances preparation
Statement of finances was prepared on the basis of going concern. Accounting methods and general accounting principles were consistently applied by the accounting entity.
(b) Long-term intangible and tangible property
Long-term intangible property Purchased long-term intangible property is valuated by costs of acquisition, where such costs mean acquisition costs and costs connected with acquisition (transport fee, duty, etc).
- III -
Long-term intangible property acquired by own activity is valuated by actual own costs, which mean direct costs, eventually part of indirect costs relating to the production and manufacturing overhead. Max. valuation is up to the level of reproduction costs of acquisition. Long-term intangible property acquired by other way is valuated by reproduction costs of acquisition. Long-term tangible property Long-term tangible property, acquired by purchase, is valued by costs of acquisition, where these costs mean acquisition costs and costs connected with acquisition (transport fee, duty, etc). Long-term tangible property acquired by own activity is valuated by actual own costs, which mean direct costs, eventually part of indirect costs relating to the production and manufacturing overhead. Max. valuation is up to the level of reproduction costs of acquisition. Long-term tangible property acquired by other way is valuated by reproduction costs of acquisition. Depreciations of long-term intangible property are determined on the basis of assumed period of property use (Acc. to the Accounting Act intangible property – goodwill, first costs and activated costs of development – shall be depreciated within 5 years since acquisition of the same) and assumed course of wearing of the same. Depreciation starts on first day of month following the month when long-term property use commenced. Other intangible property with costs of acquisition (or own costs) SKK 50.000 and below is considered service and it is monitored in off-balance sheet evidence. Assumed period of use, depreciation method and depreciated rate are in table below: Assumed period of
use
Depreciation
method
Annual depreciation
rate in %
First costs max. 5 Uniform 20 Activated costs of development max. 5 Uniform 20 Software 4 - 5 Uniform 25 - 20 Ratable rights (license) max. 5 Uniform 20
Long-term tangible property depreciations are determined on the basis of assumed period of property use and assumed course of wearing. Depreciation starts on first day of month following the month when long-term property use commenced. Other long-term tangible property with costs of acquisition (or own costs) SKK 30.000 and below is considered stocks and it is monitored in off-balance sheet evidence. Lands are not subject to depreciation. Assumed period of use, depreciation method and depreciated rate are in table below: Assumed period of
use
Depreciation
method
Annual depreciation rate in
%
Constructions 25 - 50 Uniform 4 - 2 Machines, instruments and equipment 3 -50 Uniform 33 - 2 Transport means 4 - 14 Uniform 25 - 7 Inventory 4 - 14 25 - 7 Acc. to the internal directive Company generates adjusting entry to incomplete investments in the case of suspended investment ventures and to used, but currently not classified long-term asset with permanently lossy operation or property is not used at all and Company doesn’t assume any returns from sale of such property.
- IV -
(c) Long-term financial asset
Bonds and shares are valuated by the costs of acquisition at the time of acquisition, including costs connected with acquisition.
By date of Statement of finances preparation bonds and shares are valuated using the following method:
Share bonds and shares in the subsidiary accounting entity, share bonds and shares in the Companies with major control and other long-term bonds and shares, acquired till December 31, 2002 are valuated by costs of acquisition.
Share bonds and shares in the subsidiary accounting entity, share bonds and shares in the Companies with major control, acquired after January 1, 2003 are valuated by costs of acquisition.
Saleable bonds and shares, acquired after January 1, 2003 are valuated by market price.
Share bonds and shares in the subsidiary accounting entity, share bonds and shares in the Companies with major control kept in foreign currency shall be converted on date of Statement of finances preparation using exchange rate declared by Slovak National Bank and valid on date when Statement of finances is prepared.
In the case of temporary reduction of saleable value of share bonds and shares in other companies, found during inventory control, adjusting entry with value of saleable value found shall be generated for these share bonds and shares.
(d) Stocks
Purchased stocks are valuated by costs of acquisition, where such costs mean acquisition costs and costs connected with acquisition (transport fee, duty, etc).
Stocks generated by own activity is valuated by planned own costs of production with composition: direct material, direct wages, other direct costs and manufacturing overhead. The only exemption is Tuby a Sloval division, where valuation of work in progress is based on storage price of material and NÚ division, where valuation of work in progress is based on actual direct costs and planned mount of manufacturing overhead. By December 31 of the given year internal stocks are re-valuated to the level of actual own production costs for previous period, if there is a significant difference between actual and planned production costs.
Stocks acquired by other way are valuated by reproduction costs of acquisition.
Material, spare parts and goods decline is accounted with price determined by weighted arithmetic average.
Adjusting entry
In the case of material and spare parts stock adjusting entry is generated by percentage of value of non-turnover stocks acc. to the internal directive of the Company, in the case of work in progress stocks (MV) and finished production (HV) stocks acc. to the individual assessment, if expected sale price is lower then value of valuation in accounting.
Adjusting entry is reduced when reasons for existence of such entry (sale of consumption of stocks, re-evaluation of entry amount justness) no longer exist.
(e) Receivables
At the time of occurrence receivables are valuated by nominal value of the same. Assigned receivables and receivables acquired by contribution to the fixed assets are valuated by costs of acquisition.
Adjusting entry
Acc. to the internal directive adjusting entry was generated, especially acc. to the individual assessment of receivable return. 100% adjusting entry was generated for bad debts (e.g. under bankruptcy or in dissolution, interests on late payment) if such entry was generated to the remaining
- V -
receivables in proportional amount to the expected return. Adjusting entry is reduced when reasons for existence of such entry (especially because of sale, depreciation or assignment of bad debts) no longer exist. (f) Short-term financial asset
Short-term financial asset is valuated by costs of acquisition, where such costs mean acquisition costs and costs connected with acquisition. Money and accounts in banks are valuated by nominal value.
Free allocated proportional share of emission quotas is evaluated by reproduction price, i.e. by price of asset acquisition at the time of accounting using prices on defined market Point Carbon. Emission quotas are accounted on date of transfer of the same to the account in the register kept in Dexia Bank.
Purchased emission quotas are valuated at costs of acquisition.
(g) Accrual at the side of balance-sheet assets
Accrual at the side of balance-sheet assets is valuated by nominal value with observation of time and objective dependency principle. (h) Payables including reserves, debit notes, loans and credits
Payables, debit notes, loans and credits are valuated by nominal value. Reserves as liabilities with uncertain time limits and uncertain amount are valuated by expected amount of liability. (i) Accrual at the side of balance-sheet liabilities
Accrual at the side of balance-sheet liabilities is valuated by nominal value with observation of time and objective dependency principle. (j) Deferred taxes
Deferred taxes refer to: a) Temporary differences between accounting value of asset and accounting value of payables and
tax base of the same, b) Option to amortize tax loss in the future, meaning option to deduct tax loss from tax base in the
future, c) Option to transfer unused tax deductions and other tax claims to the future periods.
For determination of deferred tax amount income tax rate valid for future periods is used. Deferred tax receivable shall be accounted only when it is probable, that tax base against which deferred tax receivables can be claimed is achievable. (k) Leasing
Operative leasing. Property leased on the basis of operative leasing is accounted by property owner as his property not by lessee. Company shall account such property in off balance-sheet evidence.
Financial leasing. Property leased on the basis of contract signed till December 31, 2003 is accounted by property owner as his property not by lessee. Company shall account such property in off balance-sheet evidence. (l) Derivates
Derivates are valuated by costs of acquisition in date of acquisition and by actual price on date of statement of finances.
- VI -
(m) Foreign currency
Property and payables expressed in foreign currency are converted to Slovak currency using exchange rate determined in table of exchanges of Slovak National Bank, valid on date of accounting case performance and in the Statement of finances using exchange rate valid on date of Statement preparation. These items are accounted acc. to the accounting procedures. (n) Revenues
Revenues from own activities and goods don’t include VAT. These revenues are also reduced by discounts and deductions (rebates, bonuses, discounts, credit notes, etc.) regardless if customer had right for discount in advance or if this is additionally accepted discount.
F. INFORMATION OF DATA ON THE SIDE OF BALANCE-SHEET ASSETS
1. Long-term intangible and long-term tangible asset
For summary of long-term intangible and tangible asset movement since January 1, 2005 till December 31, 2005 see tables below:
Long-term intangible and tangible asset movements acc. to property register
Software
(th. SKK)
Ratable rights
(th. SKK)
Other
property
(th. SKK)
Incomplete investments,
advances
(th. SKK)
In total
(th. SKK)Costs of acquisition By 1.1. 52 100 548 8 866 7 703 69 217Accruals - - - 8 042 8 042Declines - 16 781 - 548 - 4 656 - 1 367 - 23 352Transfers 12 806 556 - - 13 362 -By 31.12. 48 125 556 4 210 1 016 53 907
Adjustment
by 1.1. 41 606 548 8 866 - 51 020Accruals 5 469 46 - - 5 515Declines - 16 781 - 548 - 4 656 - - 21 985By 31.12. 30 294 46 4 210 - 34 550
Depreciated price By 1.1. 10 494 - - 7 703 18 197By 31.12. 17 831 510 - 1 016 19 357
Long-term tangible asset movements acc. to property register
Lands
(th. SKK)
Constructions
(th. SKK)
Separate
movable
property,
movable
property sets
(th. SKK)
Others
(th. SKK)
Incomplete
investments
(th. SKK)
Advances
(th. SKK)
In total
(th. SKK)Costs of
acquisition
By 1.1. 284 613 2 265 207 1 787 540 137 045 165 187 3 911 4 643 503Accruals - 6 211 8 217 - 141 918 15 480 171 826Declines -35 377 - 657 669 - 566 598 - 102 423 - 8 465 - 18 941 - 1 389 473Transfers 2 443 49 953 109 442 - - 161 838 - -By 31.12. 251 679 1 663 702 1 338 601 34 622 136 802 450 3 425 856
Adjustment
by 1.1. 148 208 1 489 061 1 209 561 133 651 34 055 1 992 3 016 528
- VII -
Long-term tangible asset movements acc. to property register
Lands
(th. SKK)
Constructions
(th. SKK)
Separate
movable
property,
movable
property sets
(th. SKK)
Others
(th. SKK)
Incomplete
investments
(th. SKK)
Advances
(th. SKK)
In total
(th. SKK)Accruals - 44 770 106 843 - - - 151 613Declines - - 321 485 - 434 380 - 99 119 - - - 854 984Transfers - 3 481 28 271 - - 31 752 - -Accruals - AE - 528 9 338 - 58 218 - 68 084Declines - AE 40 384 163 161 9 759 - 3 896 1 992 219 192By 31.12. 107 824 1 053 194 909 874 34 532 56 625 - 2 162 049
Depreciated price By 1.1. 136 405 776 146 577 979 3 394 131 132 - 1 626 975By 31.12. 143 855 610 508 428 727 90 80 177 450 1 263 807
The highest declines of long-term tangible and intangible assets resulted from property investment to Sapa Profily, a.s. (Alufinal, a.s.) with depreciated price SKK 187.543.000, sale of real estate of Oxide division with depreciated price SKK 165.373.00 of ZSNP Recykling, a.s. and sale of long-term tangible and intangible property of VUM division with depreciated price SKK 96.392.000.
Summary of generation and accounting of adjusting entries ("AE") to long-term property
by December 31, 2005
Initial
condition
by 1. 1. 2005
(th. SKK)
Transfer
from
reserves
(th. SKK)
Generation
(th. SKK)
Accounting
(th. SKK)
Transfer
(th. SKK)
Closing
balance by
31. 12. 2005
(th. SKK) AE to permanently unused property of LKV (Oxide division) 143 110 - - 148 039 34 635 29 706AE to the lands beneath of Oxide division 46 053 - - 40 383 - 5 670AE to the lands beneath stock-pile 102 155 - - - - 102 155AE to sludge bed property 158 961 - - 7 653 - 12 613 138 695AE to alkali water neutralization property 148 340 - - 15 236 9 730 142 834AE to unused property - OSM 30 390 - 1 008 1 992 - 29 406AE to the property of Sloval – sale - - 8 857 - - 8 857Others 36 047 53 966 4 252 5 888 - 31 752 56 625In total 665 056 53 966 14 117 219 191 - 513 948
Adjusting entries to the property of Oxide division were accounted because of property sale, to the lands because of sale and harmonization of allotment numbers with real estate cadastre and subsequent regionalization of lands with assignment for Industrial park. Adjusting entry was generated because of prepared sale of Slovak division property. Long-term intangible and tangible property with pledge established and
property, with disposal right restricted
(thousands SKK)UNION POISŤOVŇA - custom debt insurance – real estate (valuation in depreciated accounting value) 13 217
- VIII -
Insurance coverage of long-term intangible and tangible property Property insured Insurance company Amount insured
(thousands SKK)Long-term property Allianz - Slovenská poisťovňa 15 567 076 Includes insurance against object damage by fire, lightning, explosion, plane impact or fall, storm, hailstorm, flood, earthquake, landslide, water from water supply and insurance against object damage by theft, burglary and robbery.
2. Long-term financial asset
Amount of fixed asset by December 31, 2005 and economical result for accounting period 2005 of these companies together with comparison of these data with previous accounting period:
Fixed
assets
share
Vote
rights
share
Economical result
(th. SKK)
Fixed assets
(th. SKK.)
Accounting value in
balance-sheet
(th. SKK) % % 2005 2004 2005 2004 2005 2004
a) Subsidiaries ZSNP FOUNDRY, a.s. 100 100 -80 193 -48 111 72 823 156 016 197 697 197 697ZSNP RECYKLING, s.r.o. 100 100 -32 851 11 212 -427 33 424 23 485 23 485FINALCAST, a.s. (SLOVAL, a.s.) 100 100 -61 -226 727 788 977 977ZSNP TRADE, s.r.o. 100 100 1 31 5 568 5 567 7 242 7 242UM, s.r.o. 100 100 -8 -28 164 172 200 200Enviroservis,s.r.o. 100 100 436 268 2 803 468 2 100 200TUBAPACK, a.s. 100 100 -63 -41 996 959 1 10 1 000Sapa Profily, a.s. (Alufinal, a.s.) 100 100 -239 129 - 453 010 - 692 138 -ALUFINAL PRAHA, s.r.o. 100 100 -339 860 1 864 2 140 - 3 940ALUPROF, s.r.o. Praha 51 51 - - -2 337 -2 272 67 65ZSNP ELEKTROVODIČE, s.r.o. 100 100 -16 -17 100 114 150 146ALUPA, s.r.o. Pardubice 51 51 13 718 11 800 22 861 14 581 - 324VUM, a.s. 100 100 -2 669 -37 -1 605 963 - 1 000Teplo, s.r.o. 100 100 - 6 999 - 3 323 23 740 41 225 28 000 -In total - 348 173 - 27 612 580 287 254 145 953 156 236 276
Difference of SKK 17.000.000 represents increase of investment in Teplo, s.r.o. not registered with Slovak Commercial Register in amount of SKK 17.000.000 (76,24%) accounted by December 31, 2005 on the account “Acquired long-term financial asset” on the basis of contract on business share transfer dated December 9, 2005 between Žiar nad Hronom and ZSNP, a.s.
Fixed
assets
share
Vote
rights
share
Economical result
(th. SKK)
Fixed assets
(th. SKK.)
Accounting value in
balance-sheet
(th. SKK) % % 2005 2004 2005 2004 2005 2004
b) Affiliates Slovalco, a.s. 34,7 34,7 1 204 128 952 250 6 285 298 7 939 114 1 717 200 1 717 200Teplo, s.r.o. - - - - 3 323 - 41 225 - 11 000In total 1 204 128 948 927 6 285 298 7 980 339 1 717 200 1 728 200
Accounting value in balance-sheet
(th. SKK) 2005 2004
c) Others
ŠK ZSNP, s.r.o. 1 331 1 331ČKD Praha Holding 7 204Sandrik Dolné Hámre 32 325 - P, s.r.o. 33 33Sidéria - Istota 20 240 20 240In total 21 643 21 840
Long-term financial asset in total 2 691 999 1 986 316
- IX -
Economical result and fixed assets in the companies with place of seat abroad are converted using exchange rate valid on date of Statement of finances preparation, i.e. by December 31, 2005. In 2005 the following changes occurred: new company Sapa Profily, a.s. (Alufinal, a.s.) was established
Fixed assets increase in the companies Sapa Profily, a.s. (Alufinal, a.s.) and Enviroservis, s.r.o. – investment in kind,
Business share in Alufinal Praha, s.r.o., Alupa, s.r.o. Pardubice, subsidy of Sapa Profily, a.s. (Alufinal,
a.s.) sold,
Business share of VUM, a.s. sold to the company Nemecko-slovenská obchodná spoločnosť, s.r.o.
For adjusting entry development during accounting period see survey below:
Situation by
31. 12. 2004
(th. SKK)
Generation
(th. SKK)
Reduction
(th. SKK)
Cancellation
(th. SKK)
Situation by
31. 12. 2005
(th. SKK)Share bonds and share in controlled entity 65 53 530 - - 53 595Other long-term financial asset 1 397 - - - 1 397In total 1 462 53 530 - - 54 992
Adjusting entry was generated against ZSNP FOUNDRY, a.s.
Long-term financial asset with pledge established and long-term property with limited disposal right. Acc. to the contract on revolving credits signed with Citibank (Slovakia), a.s. pledge us established on priority shares of Slovalco, a.s. - 1 148 pcs of booked shares in nominal value 1.064.600 SKK/pc, which means 24,69% of fixed assets of Slovalco a.s.
On the basis of Contracts on pledge establishment pledge was established on business share of associate ZSNP, a.s. in Teplo, s.r.o.
3. Stocks
For adjusting entry development during accounting period see survey below:
Situation by
31. 12. 2004
(th. SKK)
Generation
(th. SKK)
Reduction
(th. SKK)
Cancellation
(th. SKK)
Situation by
31. 12. 2005
(th. SKK)Material 24 472 - 5 877 7 366 11 229Work in progress 3 330 789 - 3 330 789Finished products 271 - - 271 -Advance provided 21 - 5 - 16In total 28 094 789 5 882 10 967 12 034
Stocks insurance cover
Property insured Insurance company Amount insured
(th. SKK) Stocks Allianz – Slovenská poisťovňa, a.s. 350 000
Stocks are not subject to pledge.
4. Receivables
For age structure of receivables see survey below:
- X -
By 31. 12. 2005
(th. SKK)By 31. 12. 2004
(th. SKK) Long-term receivables Receivables from commercial relation 5 184 22 195 Other receivables - 79 Deferred tax receivable - 80 933 In total 5 184 103 207
Within maturity period 5 184 103 207
Short-term receivables
Receivables from commercial relation 1 426 221 1 042 045 Receivables against controlled and controlling entity 432 367 54 314 Other receivables within the consolidated unit - 42 000 Tax receivables 85 140 31 652 Other receivables 22 090 16 836 In total 1 965 818 1 186 847
Within maturity period 1 355 622 544 202 Overdue 610 196 642 645
Acc. to the Contract on short-term financing provision signed with Citibank (Slovakia), a.s. pledge is established in respect to all current and future receivables of ZSNP, a.s., including accessories.
Export receivables of debtors (MERKUR, TRGOVINA IN STORITVE D.D., Tofr Corporation – Fabryka Lekow SP, Eveline Cosmetics S.A., IZOTECHNIK s.r.o.) in total amount of EUR 233 000,- are insured in EXIMBANKA in favor of ZSNP, a.s.
By December 31, 2005 ZSNP, a.s. registers provided loans in total amount of SKK 432.367.000: ZSNP Foundry, a.s. – SKK 121.130.000, AVC, a.s. – SKK 7.000.000 and Penta Investments, a.s. – SKK 304.237.000. Loans are secured by blank bill, tangible property and bonds. Adjusting entries to receivables For adjusting entry development during accounting period see survey below:
Situation by
31. 12. 2004
(th. SKK)
Generation
(th. SKK)
Reduction
(th. SKK)
Situation by
31. 12. 2005
(th. SKK) Receivables from commercial relation 575 751 18 641 38 477 555 915 In total 575 751 18 641 38 477 555 915
5. Financial accounts, short-term financial asset
31. 12. 2005
(th. SKK)31. 12. 2004
(th. SKK)Marketable bonds 25 23Allocated emission quotas 143 094 -Purchased emission quotas 527 800 -Cash 295 288Accounts in banks 95 957 113 385In total 767 171 113 696
Slovak Ministry of Environment, Air Protection Dept. issued on June 20, 2005 confirmation on allocation of emission quotas (EK) for 3 years with volume of 538 413 t of CO2 for ZSNP, a.s. with only EK for 2005 in EK account in Quota register written free of charge. Free allocated EK were accounted on account 254 – Allocated emission quotas in amount of SKK 143.094.000 with correlative entry in the account 384 – Future period revenues – emission quotas.
- XI -
Acc. to the Contract on paid transfer of part of emission quota dated December 19, 2005 between Paroplynový cyklus, a.s. Bratislava and ZSNP, a.s. transfer of EK with volume of 650.000 t in amount of SKK 527.800.00 was made on December 29, 2005 and accounted on the account 259 – Emission quotas acquisition with correlative entry in account 321 – Receivables from commercial relation with subsequent transfer to the account 254 – Purchased emission quotas. Insurance cover of financial cash against theft
Property insured Insurance company Amount insured
(th. SKK) Money Allianz – Slovenská poisťovňa, a.s. 2 000
6. Accrual
It includes these items:
31. 12. 2005
(th. SKK)31. 12. 2004
(th. SKK)Leasing 2 172 35 076Interests from supply credit 100 1 244Others 6 624 11 608In total 8 896 47 928
Decrease of costs of future periods resulted from accounting of leasing in the costs in amount of SKK 26.829.000 and assignment of leasing in amount of SKK 5.882.000 to Sapa Profily, a.s.
G. Information on data on the side of balance-sheet liabilities
1. Fixed asset
For summary of fixed asset movement during accounting period see table below:
Situation
31. 12. 2004
(th. SKK)
Accruals
(th. SKK)
Declines
(th. SKK)
Condition
31. 12. 2005
(th. SKK)Fixed assets
Fixed assets 1 273 622 - - 1 273 622Own shares and own business shares - 5 - 4 437 - - 4 442Valuation differences from property and liabilities re-valuation 16 337 23 549 22 354 17 532Valuation differences from capital shares - 135 792 444 250 15 364 293 094Statutory reserve fund - 14 477 - 14 477Undistributed profit from previous years 442 404 130 298 - 572 702Unpaid loss from previous year - 49 090 - - - 49 090
Economical result from current accounting period 144 776 1 655 494 144 776 1 655 494 1 692 252 2 263 631 182 494 3 773 389
Distribution of accounting economical result from previous accounting period was approved by General assembly on June 17, 2005 as follows:
Amount
(th. SKK)Economical result 2004 in total – profit 144 776Contribution to the statutory reserve fund 14 477Undistributed profit from previous years 130 298 Description of significant movements in fixed assets: a) Own shares - increase because of share purchase from minor shareholders, b) Valuation differences – accounting of valuation difference from re-valuation for real price to term
deposits with fixed exchange rate, accounting of valuation difference because of investment in kind in Sapa Profily, a.s. (Alufinal, a.s.) and Enviroservis, s.r.o.
- XII -
c) Statutory reserve fund – contribution from distribution of profit from previous accounting period acc. to the resolution of General assembly,
d) Undistributed profit from previous years – re-accounting of economical result balance from 2004 acc. to the resolution of General assembly.
2. Reserves
For summary of reserves see table below:
Situation
by 31. 12. 2004
(th. SKK)
Generation
(th. SKK)
Reduction
(th. SKK)
Cancellation
(th. SKK)
Situation by
31. 12. 2005
(th. SKK)Statutory reserves Special financial reserve 7 404 2 206 - - 9 610Vacation wages incl. social welfare 8 631 9 079 8 631 - 9 079Bonuses and benefits + insurance 14 909 13 445 14 909 - 13 445Audit and declaration of taxes 2 337 1 591 2 337 - 1 591Not invoiced supplies 822 4 483 822 - 4 483Reserves for emission quotas - 78 136 - - 78 136Statutory reserves, in total 34 103 30 804 26 699 - 116 344
Situation
by 31. 12. 2004
(th. SKK)
Generation
(th. SKK)
Reduction
(th. SKK)
Cancellation
(th. SKK)
Situation by
31. 12. 2005
(th. SKK)
Other reserves Reserve for disputes on payment for goods or services provided 14 296 4 259 - - 18 555Reserve for actions 11 407 1 987 - - 13 394Reserve for sludge beds 1 023 901 329 124 132 144 - 1 220 881Reserve for retirement benefits in acc. with obligations resulting from Labor Code and Collective Agreement 45 323 - 14 512 8 755 22 056Reserve for claims and guarantee repairs 5 371 1 911 6 181 - 1 101Reserve for penalties and fines 1 000 500 - - 1 500Other reserves 1 545 2 138 1 683 - 2 000Other reserves, in total 1 102 843 339 919 154 520 8 755 1 279 487
Reserves, in total 1 136 946 370 723 181 219 8 755 1 395 831
Long-term reserves 875 693 - - - 1 077 219Short-term reserves 261 253 - - - 318 612
Reserve for sludge bed By December 31, 2005 Company updated amount of reserve connected with costs of coverage and recovery of sludge bed (RKP). Change in technological design as well as change in individual sealing and covering layers to increase safety and to avoid rain fall penetration to the sludge bed, prepared by advisory company A.S.A., spol. s r.o. resulted in RKP budget increase to SKK 619.878.000 (31.12.2004: SKK 429.570.000). By December 31, 2005 Company updated amount of reserve connected with expected costs of alkali water from sludge bed cleaning. Reserve was increased because of detailed specification of total volume of alkali water to 1 410 m3, adjustment of quotation for 1 m3 or treated alkali water based on actual and estimated electricity consumption and estimated increase of energy prices in 2006 and next years. Total amount of this reserve was adjusted to SKK 601.003.000 (31.12.2004: SKK 594.331.000). Amount of reserve was determined on the basis of existing available technologies, expected price increase by 10% , discounted 8,6%. Withdrawal of environmental reserves in amount of SKK 1.220.881.000 (31.12.2004: SKK 1.023.881.000) is expected during next 7 years.
- XIII -
Reserve for jubilees and retirement benefits Acc. to the valid Collective agreement Company is obliged to pay to its employees multiple of their average wage up to amount of 4 average wages, so called retirement benefit to at the time of retirement depending on number of worked out years. Min. requirement stipulated in Labor Code, requiring payment of 1-month average wage at the time of retirement or disability pension is include in the above amounts. In addition, Company pays certain benefits in connection with working and life jubilees. Amount of this reserve was updated during year on the basis of calculations made by insurance mathematician and balance of this reserve by December 2005 is SKK 22.056.000. Reserve for actions Company is involved in several actions connected with breach of contracts on sale of goods and environmental issues. During 2005 new actions didn’t occur, Company therefore only updated reserve amount by December 31, 2005. Reserve for emission quotas Reserve for actually released emissions (tons/SKK) was generated in amount of multiple of actual volume (tons) of emissions released to air from January 1 till December 31, 2005 and value of emission quota in total amount of SKK 78.136.000.
3. Liabilities
For structure of payables (except bank credits) by residual maturity period see table below:
31. 12. 2005
(th. SKK)31. 12. 2004
(th. SKK)Liability within maturity period 849 554 666 574Overdue payables 43 247 583 665Short-term payables, in total 892 801 1 250 239
Payables with residual maturity period 1 – 5 years 93 027 424 468Payables with residual maturity period over 5 years 115 000 -Long-term payables, in total 208 027 424 468
Company liabilities in 2004 in amount of EUR 28.345.000 (SKK 1.099.615.000) included also package of old payables, acquired by Slovenská konsolidačná, state owned creditor of final instance from former creditors. In connection with payables acquired by Slovenská konsolidačná, a.s. from former creditors ZSNP, a.s. and Slovenská konsolidačná, a.s. signed on January 14, 2000 Contract on restructuralization of credit payment calendar for TOZ No. 41/1999/2 as amended by Annex No. 1 dated November 21, 2001 (Credit A) and Agreement on payables acceptance and payment (Credit B) on January 17, 2002. Balance of Credit A on December 31, 2004 was SKK 365.765.000. Balance of Credit B by December 31, 2004 was SKK 328.298.000. Credit A and B accessory by December 31, 2004 was SKK 405.552.000.
On April 6, 2005 ZSNP, a.s. and Solemmy Financial Limited („Solemmy“) with place of seat at British Virgin Islands signed contract on assumption of debt in amount of SKK 1.110.873.000 (amount by December 31, 2004: SKK 1.099.615.000). Compensation for this debt assumption was agreed in the Annex to the above Agreement dated June 6, 2005 in amount of SKK 115.000.000 due within 7 years with interest rate BRIBOR + 1,5% with option of premature payment. Slovenská konsolidačná, a.s. approved assumption of debt by Solemmy on June 14, 2006, has withdrawn claim and suspended all legal actions against ZSNP, a.s.
- XIV -
4. Deferred tax payable and receivable
For summary of deferred tax payable and receivable see table below:
31. 12. 2005
accounted
(th. SKK)
31. 12. 2005
(th. SKK)
31. 12. 2004
(th. SKK)Deferred tax receivable
Tax loss amortization - - 24 532Adjusting entry for stocks 2 133 2 133 4 650Adjusting entry for long-term tangible propety - 77 119 50 872Adjusting entry for receivables - - 121Adjusting entry for sludge bed - 231 967 92 463Incoming interest on late payment, tax-accepted after payment
9898
323
Short-term reserves 589 589 1 504Reserve for compensation 999 999 890Reserve for compensation and retirement benefits 4 191 4 191 8 612Deferred tax receivable 8 010 317 097 183 967
Deferred tax payable Difference between accounting tax depreciations - 55 416 - 55 416 - 61 989Valuation difference from investments: Enviroservis, s.r.o.
- 290- 290
ZSNP Recykling, s.r.o. - 964 - 964 - 964 ZSNP Foundry, a.s. - 47 - 47 - 47 Športklub - 13 - 13 - 13 Sapa Profily, a.s. (Alufinal, a.s.) - 14 876 - 14 876 - Incomplete forwards - 4 112 - 4 112 -Unrealized exchange rate differences - - -3 382Unused reserves for repairs - 19 475 - 19 475 - 36 639Deferred tax payable - 95 193 - 95 193 - 103 034
Deferred tax receivable (payable) - 87 183 221 904 80 933
In accounting situation by December 31, 2005 deferred tax receivable in total amount of SKK 309.087.000 was not accounted because of uncertainty of feasibility in the future. It is a deferred tax receivable for adjusting entries and reserves, especially for sludge bed.
Deferred tax payable accounted directly on accounts of fixed assets is SKK 19.279.000.
5. Social fund
For generation and withdrawal of social fund during accounting period see table below:
31. 12. 2005
(th. SKK)31. 12. 2004
(th. SKK) Situation by January 1 5 980 5 322 Generation of wages acc. to law 3 980 3 272 SF settlement with Company because of sale of part of division (Laná, GO)
- - 545
Payment of loans 1 082 1 542 Labor force regeneration - 324 - 1579 Care of employees - 1 633 - 378 Care of pensioners - 246 - Others - 3 387 - 1 654 Situation by December 31 5 452 5 980
Acc. to the Collective agreement valid for ZSNP, a.s. ZSNP Foundry, a.s. and Sapa Profily, a.s. resources
- XV -
generated from costs acc. to the Social Fund Act in ZSNP Foundry, a.s. are transferred to SF account in ZSNP, a.s. From the common account of social fund in ZSNP, a.s. all payments for employees of these companies are provided.
6. Bank credits
No credits were registered by the Company by December 31, 2005.
In April 2005 Company had an opportunity to withdraw revolving credit in amount of SKK 960.000.000 with monthly interest rate BRIBOR + 1,25%. This credit is secured by shares of Slovalco, a.s. in total amount of SKK 1.222.161.000. Pre-condition of this credit is fulfillment of certain financial indicators (interest coverage indicator and indebtedness indicator) to be determined on the basis of individual statement of finances of the Company.
Given revolving credit was not withdrawn by December 31, 2005.
7. Accrual
For structure of accrual see table below:
31. 12. 2005
(th. SKK)31. 12. 2004
(th. SKK) Revenues from future periods
Rental of caster 2 152 - Emission quotas 64 958 - AVC, a.s. – compensation for guarantee provision, apartment sale 285 1 817 Subsidy for alkali water treatment – sludge bed 18 548 20 940
In total 85 943 22 757
H. INFORMATION ON REVENUES
1. Revenues from own activities and goods
For revenues from own activities and goods by divisions and individual segments, i.e. by types of products and services and main territories see table below:
Division, Dept.
Revenues from
products
(th. SKK)
Revenues from
services
(th. SKK)
Revenues from
goods
(th. SKK.)
In total
(th. SKK)
2005 2004 2005 2004 2005 2004 2005 2004
Alufinal 796 358 1 375 245 20 131 5 262 36 812 54 634 853 301 1 435 141Finalcast 365 310 268 490 98 855 68 635 3 466 2 352 467 631 339 477VUM 322 003 361 745 17 047 596 - - 339 050 362 341Energetika 274 838 273 131 70 845 59 817 - - 345 683 332 948Sloval 346 311 320 358 521 15 262 - 11 231 346 832 346 851Tuby 302 401 312 207 64 70 513 - 302 978 312 277Náraďovňa a údržby 27 988 36 197 37 423 108 188 - 269 65 411 144 654Others 1 673 1 112 130 800 135 986 9 730 13 887 142 203 150 985In total 2 436 882 2 948 485 375 686 393 816 50 521 82 373 2 863 089 3 424 674
Revenues by sale areas
31. 12. 2005
(th. SKK) 31. 12. 2004
(th. SKK)Slovakia – Castings, alloy, carbon material, Al profiles 1 657 127 2 020 936Czech Republic - Castings, alloy, carbon material, Al profiles, tubes, ropes 256 130 343 708Austria - Al profiles, tubes, ropes, alloys 55 530 89 025Belgium - Al profiles 62 853 93 502Holland - Al profiles 14 884 45 060Hungary - Al profiles, tubes, ropes, alloys, carbon material 167 657 159 596France – Castings, Al profiles 20 684 13 426Germany - Castings, Al profiles, tubes, ropes, alloys, carbon material 328 882 287 179Croatia - Al profiles - 144Slovenia - Al profiles, tubes, ropes, alloys, carbon material 218 768 231 235Poland - Al profiles, tubes, ropes, carbon material 69 355 58 625Others 11 219 82 238In total 2 863 089 3 424 674
- XVI -
Internal stocks level change
Difference between net stock level at the end of previous accounting period and net stock level at the end of current accounting period – reasons:
Level Level change
31. 12. 2005
(th. SKK)31. 12. 2004
(th. SKK)31. 12. 2003
(th. SKK) 2005
(th. SKK) 2004
(th. SKK)Work in progress and semi-products 43 289 67 313 42 210 -24 024 25 103Products 34 203 63 012 65 174 -28 809 -2 162In total 77 492 130 325 107 384 -52 833 22 941
Adjusting entry generation - - - 789 3 601Adjusting entry reduction - - - - 3 602 - 1 698Others Sale of Lanovna – finished production - - - - 7 084 Sale of Lanovna – work in progress - - - - 2 709Deficits and damages - - - 8 1 331Level change in profit-and-loss
statement - - - -55 638 35 968
Reduction of internal stock level resulted from sale of finished production and work in progress for Sapa Profily, a.s. a VUM, a.s..
2. Activation
31. 12. 2005
(th. SKK)31. 12. 2004
(th. SKK) Materials and goods activation 26 086 53 525 Transport charges activation 4 494 4 816 Long-term tangible propety activation 10 085 5 759 In total 40 665 64 100
3. Revenues from economical activities
Description
2005
(th. SKK) 2004
(th. SKK) Property sale 287 434 87 836 Of it: Sklené Teplice - 29 000 Movable property and real estate to VUM, a.s. 41 055 - Real estate to ZSNP Recykling, s.r.o. 43 169 - Machines for AVC, a.s. 22 248 - Trademark, know how for Sapa Profily, a.s. 132 770 - Material sale 272 006 220 742 Of it: Waste 123 560 206 230 Revenues from depreciated assigned receivables 208 279 66 986 Accounting of reserves 181 083 118 931 Of it: Environmental pollution 132 144 68 038 Unused vacations 8 631 9 064 Bonuses and benefits 14 909 14 146 Retirement benefit 14 513 - Claims and guarantee repairs 6 181 - Others 4 705 - Accounting of adjusting entries to the receivables under bankruptcy 6 909 95 Accounting of other adjusting entries 266 046 148 411 Of it: For receivables 28 944 70 320 For DNHM 219 192 61 565 For stocks 16 845 - Others 289 323 12 284 Of it: Emission quotas 78 136 - Payables assigned to Sapa Profily, a.s. 195 409 - In total 1 511 080 655 285
- XVII -
4. Financial revenues
Description
2005
(th. SKK)2004
(th. SKK) Revenues from sale of bond and business shares 5 625 20 752 Of it: THERMO/SOLAR Žiar, s.r.o. - 19 995 Lana, s.r.o. - 600 Alufinal Praha, s.r.o. 4 061 - Alupa Pardubice, s.r.o. 589 - VUM, a.s. 975 - Interests from loans provided and bank accounts 17 595 9 421 FOREX gains 41 704 39 090 Of it: Realized 16 905 29 075 Unrealized 24 799 10 015 Dividends from subsidies and affiliates 684 255 297 685 Revenues from re-valuation of bonds and derivate operations 17 849 1 200 Other revenues from financial activities 998 432 10 727 Of it: Depreciation of SKO, a.s. payable 995 873 10 594 Valuation difference THERMO/SOLAR Žiar, s.r.o. - 10 594
Accounting and cancellation of AE in revenues from fin. activities 200 41 030 Of it: THERMO/SOLAR, s.r.o. - 39 362 In total 1 765 660 419 905
5. Extraordinary revenues
2004
(th. SKK)Sale of part of GO division 20 514Sale of part of Lanovňa division 106 895Others 104In total 127 513
In 2005 Company didn’t account extraordinary revenues.
I. INFORMATION ON COSTS
1. Costs of services provided
Description
2005
(th. SKK)2004
(th. SKK) Repairs and maintenance 64 876 67 518 Other services 195 214 212 152 Of it: Transport charges for finished products 28 102 35 817 Waste transport charges 856 4 191 Leasing 26 424 32 893 Costs of advisory services 7 460 7 286 Services connected with ecology 31 234 17 230 Rental 4 132 5 185 Attorney costs 3 484 5 119 Works connected with computing equipment 3 754 4 183 Costs of Statement of finances audit 4 046 3 822 In total 260 090 279 670
- XVIII -
2. Costs of economical activities
2005
(th. SKK)2004
(th. SKK) Depreciated price of sold property 309 000 111 184 Of it: Sklené Teplice - 56 469 Movable property and real estate to VUM, a.s. 96 392 - Real estate to ZSNP Recykling, s.r.o. 165 373 - Machines for AVC, a.s. 22 321 - Storage price of stocks sold 276 185 212 486 Of it: Waste 121 643 201 299 Depreciation and assignment of receivables 226 018 118 616 Others costs of economical activities 99 611 21 994 Of it: Reserves for emission quotas 78 136 - Depreciations 156 554 167 115 Generation of statutory reserves 30 805 29 496 Of it: Audit and declaration of taxes 1 591 2 337 Industrial waste stock-pile 2 206 1 306 Bonuses, benefits, unused vacations 22 525 25 031 Not invoiced supplies 4 483 822 Generation of other reserves 331 026 432 060 Of it: Elimination of environmental pollution 329 124 416 694 For retirement benefits acc. to LC and CA - 8 755 1 967 Actions 6 246 1 403 Claims and guarantee repairs 1 911 10 450 Others 2 500 - Generation of statutory adjusting entries for receivables 10 434 6 938 Generation of other adjusting entries 77 080 53 979 Of it: For DNHM 9 866 10 294 For unfinished investments 58 218 20 032 For receivables 8 207 13 011 For stocks 789 5 999 For acquired property - 4 643 In total 1 516 713 1 153 868
3. Financial costs
Description
2005
(th. SKK)2004
(th. SKK) Business share sale 5 364 50 093 Of it: Sale of THERMO/SOLAR Žiar, s.r.o. - 49 362 Alufinal Praha, s.r.o. 3 940 - Alupa, s.r.o. Pardubice 324 - VUM, a.s. 1 100 - Cost interests 17 217 66 232 Of it: Interests from bank credits 1 925 36 397 Interests from supply credits 1 144 2 419 Unpaid SKO interests 9 732 21 496 Unpaid sanction interests of SKO 1 528 2 726 Unpaid interests to non-financial institutions 2 888 - Exchange rate losses 38 149 31 505 Of it: Unrealized exchange rate losses -7 000 3 592 From re-exchange of foreign currency accounts 8 026 6 338 Other realized exchange rate losses 37 123 21 575 Other financial costs 19 454 25 286 Of it: Property insurance 12 344 14 161 Bank guarantees and charges 7 059 6 875 Others 51 4 250 Adjusting entry generation for long-term receivables discount. - 38 Adjusting entry generation for financial investments 53 529 - Costs of bonds re-valuation 2 001 - In total 135 714 173 154
- XIX -
4. Extraordinary costs
2004
(th. SKK)Sale of part of GO division 21 289Sale of part of Lanovňa division 79 709In total 100 998
In 2005 Company didn’t account extraordinary costs.
J. INFORMATION ON INCOME TAX
For transfer from theoretic income tax to accounted income tax see table below:
2005 2004
Value
(th. SKK)Tax
%
Value
(th. SKK)Tax
%Economical result before taxation 1 887 860 172 287Of it: Theoretic tax 358 693 19 % 32 735 19 %
− Part of deferred tax receivables not accounted because of uncertainty in respect to feasibility of tax receivables 181 398 19 % 955 19 %
− Permanently non-deductible and deductible differences -307 725 -11 025− Deduction tax from dividends and interests taxed by appropriate
rate 19 % -191 19 %Income tax 232 366 22 474
Due tax 83 529 59 114Deferred tax (connected with creation and cancellation of temporary differences) 148 837 -36 640Income tax 232 366 22 474
K. INFORMATION ON DATA ON OFF BALANCE-SHEET ACCOUNTS
1. Leased property
31. 12. 2005
(th. SKK)31. 12. 2004
(th. SKK) Property lease din form of financial leasing: 2 089 18 192 Toughening furnace - 11 000 Passenger and commercial cars 2 089 6 046 Other property - 1 146 Property leased in form of operative leasing 9 114 8 971 Other intangible property 2 785 399 Other tangible property 6 867 23 124 Protected property – ŠHR production 5 354 5 354 In total 26 209 56 040
2. Property in custody
31. 12. 2005
(th. SKK)31. 12. 2004
(th. SKK) Property in ALF custody - 33 845 Other property in custody - 14 711 Stocks received by VUM for processing - 681 Stocks received by ALF – press shop for processing - 1 020 Civil defense and military training stocks 3 611 3 611 In total 3 611 53 868
- XX -
3. Receivables and payables from fixed term operations
31. 12. 2005
(th. SKK)31. 12. 2004
(th. SKK) Receivables from fixed term operations 751 946 349 983 Payables from fixed term operations -751 946 -349 983
From re-valuation of fixed term operations by December 31, 2005 difference in amount of SKK 17.532.000 resulted. This difference is accounted in fixed assets, in the item Valuation differences from property and liabilities re-valuation.
4. Other items
31. 12. 2005
(th. SKK)31. 12. 2004
(th. SKK) Bond lien - CITIBANK 1 222 161 1 420 320 Receivables in nominal value assigned from ZSNP FOUNDRY, a.s. 105 12 510 Business share lien - TEPLO, s.r.o. - DEXIA 28 000 11 000
L. INFORMATION ON OTHER ASSETS AND LIABILITIES
1. Eventual other payables from
a) Environmental risks
Estimations of amounts and timing of future costs of requirements connected with environment restitution are not unconditionally accurate because of continuous development of acts and regulation requirements in the area of environment and availability and application of technology. Based on available information significant impact of such future costs on competitive or financial position of the Company is not expected. However, these can have a significant influence on Company economical results in any of the future accounting periods. b) Judicial decisions Company is not involved in any passive action outside of its usual activities (see part Reserves). c) Guarantee in breakdown by individual types of guarantees
31. 12. 2005
(th. SKK) 31. 12. 2004
(th. SKK)
Credit guarantee in favor of Citibank - AVC, a.s. (allied party) 165 000 125 000Financial derivates guarantee in favor of Citibank - AVC, a.s. (allied party) 9 648 71 240Note guarantees in favor of OMV Slovensko - ZSNP Trade, s.r.o. 12 000 12 000Credit guarantee in favor of Tatra banka, a.s. - ZSNP Foundry, a.s. 4 127 4 000
Note: Guarantee for AVC, a.s. is provided as follows: - Credit guarantee – guaranty statement - Hedging guarantee – guaranty statement For both guarantees Agreement on provision of guarantee and compensation for provision of guarantee was signed upon between ZSNP, a.s. and AVC, a.s. In addition, Agreement on method and conditions of filling of blank bill was signed and blank bill was issued in respect to the credit guarantee.
- XXI -
2. Others financial obligations resulting from
a) Service contracts Company has procured and operates technological equipment – cogeneration unit, put into operation in 2003. From Maintenance contract signed on January 23, 2002 with the supplier of this equipment results, that supplier will carry out regular repairs and general overhauls of this equipment for period of 15 years. Payment of these future repairs is effected in quarter installments with future payable of the Company, unpaid so far, is SKK 91.883.000.
M. INFORMATION ON REEVNUES AND BENEFITS OF MEMBERS OF STATUTORY BODIES, SUPERVISORY
BODIES AND OTHER BODIES OF THE ACCOUNTING ENTITY
Current members Former members
Management
Statutory
representatives
Supervisory
board Management
Statutory
representatives
Supervisory
board
2005
(th. SKK) 2004
(th. SKK)2005
(th. SKK) 2004
(th. SKK)2005
(th.SKK) 2004
(th. SKK) 2005
(th. SKK) 2004
(th. SKK)2005
(th. SKK) 2004
(th. SKK) 2005
( th. SKK)2004
(th. SKK)
Cash incomes 15 038 10 629 741 876 287 360 167 948 109 60 190 240
In total 15 038 10 629 741 876 287 360 167 948 109 60 190 240
N. INFORMATION ON ECONOMICAL RELATIONS OF THE ACCOUNTING ENTITY AND ALLIED
ENTITIES
Allied entities include companies from Penta Holding Limited Group, listed in the following survey. During year Company carried out transactions especially within the Group of ZSNP divisions, including ZSNP Foundry, a.s., ZSNP Recykling, s.r.o., ZSNP Trade, s.r.o., Finalcast, a.s. (Sloval, a.s.), Teplo, .s.r.o., Enviroservis, s.r.o., UM, s.r.o., TUBAPACK, a.s., VUM, a.s., Sapa Profily, a.s. (Alufinal, a.s.) Alufinal Praha, s.r.o., Aluprof, s.r.o., ZSNP Elekrovodiče, s.r.o., Alupa, s.r.o. and Slovalco, a.s..
- XXII -
Portfolio of controlled companies by 31.12.2005
Company name: Fixed assets share Place of seat
Penta Holding Limited owns: 1 Penta First Fund Limited 100% Cyprus 2 Penta Asset Management Limited 100% Cyprus 3 WFSE a.s. 100% Slovak Republic 4 Invest Brokers, o.c.p., a.s. 100% Slovak Republic 5 Penta Reality, a.s. 100% Slovak Republic 6 P 67 value, s.r.o. 100% Slovak Republic 7 PFSE, a.s. 100% Czech Republic 8 Penta Investments, a.s. 100% Czech Republic 9 Penta Investments, a.s. 100% Slovak Republic
Penta First Fund Limited owns: 1 Penta Investments Limited 100% Cyprus 2 Profesional Sp. Z oo 33% Poľská republika
Penta Investments Limited owns: 1 LPV Finance B.V. 100% Holland 2 Lorea Investments Limited 100% Cyprus 3 Vinaco Holdings Limited 100% Cyprus 4 Digital Park, a.s. 50% Slovak Republic 5 Waterfall Holding B.V. 100% Holland 6 Oakfield, a.s. 100% Czech Republic 7 B Consult v likvidácií, a.s. 100% Slovak Republic 8 Slovenský investičný holding, a.s. 95,8% Slovak Republic 9 ZSNP, a.s. 96,05% Slovak Republic
10 Dôvera, a.s. 100% Slovak Republic 11 Drôtovňa Holding v konkurze 28% Slovak Republic 12 Bortez,s.r.o 50% Slovak Republic 13 Centrade, a.s. 100% Slovak Republic 14 B Four, a.s. 100% Slovak Republic 15 BTS Holding, a.s. 33,24% Slovak Republic 16 DKG Trade, spol. s.r.o. 100% Czech Republic 17 AVC, a.s. 37,11% Slovak Republic 18 KSC Holding, a.s. 33,24% Slovak Republic 19 Medireco, a.s. 100% Czech Republic 20 PXP Corp., s.r.o. 100% Slovak Republic 21 STEELCO,a.s. 100% Czech Republic 22 TERNO, akciová spoločnosť 100% Slovak Republic 23 Tularosa, a.s. 100% Czech Republic
ZSNP, a.s. owns: 1 ZSNP FOUNDRY, a.s. 100% Slovak Republic 2 ZSNP RECYKLING, s.r.o. 100% Slovak Republic 3 FINALCAST, a.s. (SLOVAL, a.s.) 100% Slovak Republic 4 ZSNP TRADE, s.r.o. 100% Slovak Republic 5 UM, s.r.o. 100% Slovak Republic 6 ENVIROSERVIS, s.r.o. 100% Slovak Republic 7 TUBAPACK, a.s. 100% Slovak Republic 8 Sapa Profily, a.s. (Alufinal, a.s.) 100% Slovak Republic 9 ALUPROF, s.r.o. 51% Czech Republic
10 ZSNP ELEKTROVODIČE, s.r.o. 100% Czech Republic 11 SLOVALCO, a.s. 34,70% Slovak Republic 12 TEPLO, s.r.o. 100,00% Slovak Republic
- XXIII -
Sapa Profily, a.s. (Alufinal, a.s.) owns:
1 Alufinal Praha, s.r.o. 100% Czech Republic 2 Alupa, s.r.o. Pardubice 51% Czech Republic
During accounting period Company made the following transactions with allied entities:
a) Transactions with parent company and subsidiaries
2005
(th. SKK)2004
(th. SKK) Purchase Long-term intangible propety 340 - Stocks 54 647 98 383 Services 7 671 6 263 Purchase, in total 62 658 104 646
Sale Products
253 779 382 383 Services 99 984 80 829 Goods 19 661 4 550 Stocks 95 034 2 089 Long-term intangible propety 194 439 10 610 Others 398 505 - Sale, in total 1 061 402 480 461
Loan 121 130 54 314 Guarantee 16 127 84 941 Interests and dividends 11 961 4 333
c) Transactions with affiliates
2005
(th. SKK)2004
(th. SKK) Purchase Stocks 806 397 1 225 199 Services 1 493 2 290 Purchase, in total 807 890 1 227 489
Sale Products 84 134 203 339 Services 72 026 157 095 Goods 43 834 Stocks 119 646 195 688 Sale, in total 275 849 556 956
Dividends 677 951 293 852
For selected assets and liabilities resulting from transactions with allied entities see table below:
31. 12. 2005
(th. SKK)31. 12. 2004
(th. SKK) Receivables from commercial relations 627 787 68 738 Other receivables within the consolidated unit 432 367 54 339 Assets, in total 1 060 154 123 077
Liabilities from commercial relations 4 693 17 561 Liabilities, in total 4 693 17 561
- XXIV -
O. INFORMATION OF FACTS OCCURRING AFTER DATE WHEN STATEMENT OF FINANCES IS
PREPARED TILL THE DATE OF STATEMENT OF FINANCES COMPLETION
After December 31, 2005 the following events with significant impact on accurate presentation of facts, which are subject of accounting occurred:
- On January 2, 2006 Company sold 100% of shares of Sapa Profily, a.s. (Alufinal, a.s.) to Sapa AB,
with place of seat in Stockholm, Sweden on the basis of contract on sale. - On January 30, 2006 Company sold 100% of shares of ZSNP FOUNDRY, a.s. to Fagor Ederlan, S. Coop,
with place of seat Torrebaso 7, 20540 Eskoriatza, Spain in the basis of contract on sale.
- Transformation of ZSNP Recykling, s.r.o. to the joint-stock company and subsequent sale of 100% of shares.
- Because of common method of purchased stocks valuation (material, spare parts, goods, fuel) within
the consolidation unit Company replaces method of weighted average with FIFO method from April 1, 2006.
- On April 1, 2006 Company sold stocks of Tuby division to TUBAPACK, a.s. and increased fixed assets
of this company through the investment in kind (movable property and real estate). Subsequently Tuby division was dissolved.
- In April 2005 Company had an opportunity to withdraw revolving credit in amount of SKK 960.000.000
with monthly interest rate BRIBOR + 1,25%. This credit is secured by shares of Slovalco, a.s. in total amount of SKK 1.222.161.000. Pre-condition of this credit is fulfillment of certain financial indicators (interest coverage indicator and indebtedness indicator) to be determined on the basis of individual statement of finances of the Company. Credit was fully withdrawn on January 2, 2006 for purposes of the group.
- On January 31, 2006 Company sold 883.000 tons of emission quotas to Paroplynový cyklus, a.s.
Bratislava (Commissioner) on the basis of Commission contract on procurement of sale of emission quotas dated January 5, 2006.
- XXV -
Table of cash flow by December 31, 2005
2005
(th. SKK) 2004
(th. SKK)Z/S Economical result from ordinary services before income tax taxation 1 887 860 150 810
A.1. Non-cash operation affecting economical result from ordinary services -1 407 018 313 380
A.1.1. Depreciations of long-term intangible and tangible property 156 554 171 759
A.1.2. Depreciated valued of long-term intangible and tangible property accounted at the time of rejection (except the sale) - 13 361
A.1.3. Depreciation of adjusting entry for acquired property - -A.1.4. Reserve level change 258 885 347 177A.1.5. Adjusting entries level change -132 113 -77 000A.1.6. Changes in costs and revenues accrual items level 101 438 94 365A.1.7. Dividends and other shares of profits accounted in revenues -684 255 -297 685A.1.8. Interests accounted in costs 17 217 66 232A.1.9. Interests accounted in revenues -17 595 -9 421
A.1.12. Result from sale of long-term property except the property considered as financial equivalent 641-541 21 566 -
A.1.13 Others items with non-cash character -1 128 715 4 592
A.2. Influence of changes in operation capital level 85 410 -75 996
A.2.1. Change in level of receivables from operation activity -381 917 64 644A.2.2. Change in level of payables from operation activity 267 871 3 674A.2.3. Stock level change 199 456 -144 314A.3. Received interests except the interests incorporated in investment activities 17 595 9 421A.4. Paid interests expenses except interests incorporated in financial activities -17 217 -66 232
A.7 Accounting entity income tax expenses except expenses incorporated to the investment or financial activities -127 436 -
A.8. Extraordinary incomes relating to operation activities - 21 477A.9. Extraordinary expenses relating to operation activities - -A. Net cash flows from operation activities -1 448 666 202 051
B.1. Expenses for long-term intangible property acquisition -6 100 -12 077B.2. Expenses for long-term tangible property acquisition -133 881 -210 583
B.3. Expenses for long-term bonds and shares in other accounting entities acquisition -18 300 -16 229B.4. Incomes from long-term intangible asset sale 2 424B.5. Incomes from long-term tangible asset sale 287 434 87 836B.6. Incomes from long-term bonds and shares in other accounting entities sale 5 627 10 000
B.7. Expenses for long-term loans provided by the accounting entity to other accounting entity within the Group -540 692 -91 114
B.8. Revenues from repayment of long-term loans provided by the accounting entity to other accounting entity within the Group 204 639 297 685
B.13. Revenues from dividends and other shares of profit except revenues incorporated to the operation activities 684 255 -
B. Net cash flows from investment activities 482 982 67 942
C.1. Cash flows in fixed assets -4 437 -
C.1.5. Expenses for acquisition or re-purchase of own shares and equity securities -4 437 -
C.2. Cash flows resulting from long-term liabilities and short-term liabilities from fin. activities -407 358 -364 642
C.2.4. Expenses for repayment of credits except the credits provided for core activity -407 358 -364 642C.2.6. Loan provision expenses - -C.5. Expenses for emission quotas acquisition -527 800 -C. Net cash flows from financial activities -939 595 -364 642
D. Net increase or reduction of cash -17 419 56 160
E. Cash and cash equivalents level at the beginning of accounting period 113 696 57 535
F. Cash and cash equivalents level at the end of accounting period 96 277 113 696
G.
Exchange rate differences calculated for cash and cash equivalents by date of
statement of finances - -
H. Cash and cash equivalent balance at the and of accounting period 96 277 113 695
- XXVI -
Cash
Cash means cash, cash equivalent, cash on current accounts in the banks, book account and part of balance of account “Funds in transit” connected with transfer between current account and cash desk or between 2 bank accounts. Cash equivalents
Cash equivalents mean short-term financial asset exchangeable for cash amount known in advance, without any risk of significant change of asset value during next 3 months since date of Statement of finances preparation, e.g. term deposits on bank accounts deposited for max. 3 month notice period, liquid bonds intended for trading, priority shares acquired by the accounting entity, due within 3 months since date of Statement of finances preparation.
April 18, 2006 .................................. .....................................................
Date Signature of statutory body
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