Annual Report 2008

NOTES TO THE SEPARATE FINANCIAL STATEMENTS For the year ended 31 December 2008 (in thousands of SKK) The Company records currency derivatives as trading instruments with fair value adjustments recorded in the statement of profit and loss, and as instruments designed as cash flows hedges where changes in fair value are recorded in equity. The carrying amount of cash assets and cash liabilities of the Company denominated in a foreign currency as at the reporting date is as follows: EUR USD CZK PLN CHF Liabilities 31 December 2008 31 December 2007 1 655 607 1 375 308 10 108 5 355 30 627 21 925 82 819 609 Assets 31December2008 31December2007 774896 816287 44 903 45 365 35 395 148 909 92241 131162 The following table presents the Company's sensitivity to a 25% increase/decrease in EUR against USD. a 20% increase/decrease in the EUR against CZK and PLN, and a 10% increase/decrease in EUR against CHF. The sensitivity analysis includes monetary items denominated in foreign currencies and adjusts their translation at the end of the reporting period for the aforementioned change in foreign currency rates. Posilive balances indicate an increase in profil and other equity items upon a decrease of EUR against lhe respective currency. Appreciation of EUR against the respective currency would result in similar, however opposite impact on profit and other equity items. while dala presented below would be negative. Profit or loss Profit or loss USD 31 December 2008 8699 31 December 2007 10002 PLN 31 December 2008 18 448 31 December 2007 13 108 31 December 2008 954 31 December 2008 (78) CZK 31December2007 19 048 CHF 31December2007 (61) To decrease risks resulting from fluctuations in foreign currency exchange rates, the Company uses financial derivatives. See Note 28. Liquldlty risk Prudent liquidity risk management implies mainlaining sufficient cash with adequate due date and marketable securities. the availability of funding through an adequate amount of commttted credit lines and the ability to close out market positions. The following tables summarize the residual maturity period of the Company's non-derivative financial liabilities. The tables have been prepared based on undiscounted cash flows from financial liabilities assuming the earliest possible date on which the Company can be required to settle the liabilities. The table includes cash flows from bolh interest and principal during the term of a loan agreement. 2008 lnterest-free liabilities Floating interest rate instruments (loans) Financa lease obligations 2007 lnterest-free liabilities Floating interes! rate instruments (loans) Finance lease obligations Weighted average effective lnterest rate up to 1 month 775 676 1-3 months 86 409 3months to 1 year 158 027 1- 5 years 5 509 5+ years Total 1 025 621 412139 86 357 214 012 1119140 4.94% 1 831 648 882 1 764 7 940 11 704 1188 697 174 530 379 979 1136 353 9.49% -~~~'--~-'-',~-~~~-~.,...,...;-',-"..;------'~"';"';~~2~8;"'~"-~"'~""~- 792 148 170409 268 405 244 077 1 475 039 267 206 108 762 105 815 917 043 1 276 2 553 11 488 20 632 1060630 281 724 385 708 1181 752 The following table summarizes the Company's liquidity analysis with respect to financial derivalives. The table has been prepared based on undiscounted net cash inflows/(oulflows) from financial derivatives which can be settled by the Company eilher net or gross. up to 1-3 3months 1- 5 years 5+ years 1 month months to 1 year 2008 Currency option contracts 8 703 668 1 204 Currency forward conlracts (2 847) (15 209) (43 368) Total 8 703 (2179! j14 005) j43 368! 2007 Currency option contracts 2 501 4 986 22 315 28 648 Currency forward conlracls 14 236 28492 97 268 100 979 Total 16 737 33478 119583 129 627