Annual Report 2008

REPORT BY THE BOARD OF DIRECTORS ŽELEZIARNE PODBREZOVÁ Expenses, Revenues and Profit for 2008 In 2008,Železiarne Podbrezová reported a profit of SKK 396 788 thousand (EUR 13.2 million), which represents the difference between total revenues of SKK 9 671 703 thousand (EUR 321.0 million) and total expenses of SKK 9 274 915 thousand (EUR 307.9 million). The structure of revenues did not substantially change in comparison to the previous year. The structure of expenses in 2008 was similar to the previous year: - Consumed material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....... 55.8% - Consumed energy. . .. 11.0% - Costs of goods sold ..... „ . . ... „ . . . . „ . . . . . „ . . „ . „ .. „ . . . . 1.7% - Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... 6.4% - Personnel expenses ........ 17.5% - Depreciation of non-current assets..... . . .. . .. . ... 2.7% - Financial expenses . . . . . . . . . . . . . . . . . . . . . . ..... 3.3% - Taxes and fees ........ . . . .. .. . . ... .. . .... .. . ... . .. ... . . . .... . . . .... . . ... . . . . . . . . . . ...... 1.1% - Other expenses .............................. . ... 0.5% Profitability measured to expenses and revenues represented 4.34% and 4.16%, respectively. Financial data as presented in the Annual Report corresponds to the data disclosed in Železiarne Podbrezová's separate IFRS (lnternational Financial Reporting Standards) financial statements. Financial data were translated from Slovak crowns to euros in the Annual Report using the conversion exchange rate of SKK/EUR 30.1260. Data from Separate IFRS lncome Statement for the year ended 31 December 2008 (SKK thousand) For2008 Revenues •• Changes in inventories of finished products and work in progress 64864 Own work capitalized 257 500 Raw material and consumables used -6 355 363 Services -595 382 Personnelexpenses -1618686 Depreciation and amortization -247 687 Other operating revenues (+)/expenses (-), net -25 296 Interes! income 11 295 Interes! expense -98 015 Other financial income (+)/expenses (-), net -95 984 Profit before tax 498 004 lncome tax expense -101 216 Profit for the year 396 788 For2007 8 639 012 178 289 266 220 -5512040 -586 100 -1642777 -248 672 58060 3 291 -72 058 124 650 1 207 875 -194 595 1013280