Annual report 2015

Notes to the Consolidated Financial Statements For the year ended 31 December 2015 (in euros) Železiarne Podbrezová a.s. Annual report 2015 WƵƌĐŚĂƐĞƐ ŽĨ ŐŽŽĚƐ and services in 2015 WĂLJĂďůĞƐ ĂƐ Ăƚ 31 Dec 2015 Sales of goods and services in 2015 Receivables as at 31 Dec 2015 Parent company and ultimate owners 1 107 374 25 431 565 228 494 26 171 Fellow subsidiaries 9 470 330 1 278 504 43 631 973 640 607 Other related parties 1 723 104 113 144 1 703 076 268 827 Total 12 300 808 26 823 213 45 563 543 935 605 WƵƌĐŚĂƐĞƐ ŽĨ ŐŽŽĚƐ and services in 2014 WĂLJĂďůĞƐ ĂƐ Ăƚ 31 Dec 2014 Sales of goods and services in 2014 Receivables as at 31 Dec 2014 Parent company and ultimate owners 920 814 22 930 767 218 943 23 108 Fellow subsidiaries 8 242 962 1 709 545 48 049 453 1 104 106 Other related parties 2 876 619 694 591 2 174 430 473 460 Total 12 040 395 25 334 903 50 442 826 1 600 674 Transactions with the parent company and ƵůƚŝŵĂƚĞ ŽǁŶĞƌƐ ŵĂŝŶůLJ ƌĞƉƌĞƐĞŶƚ ƌĞĐĞŝǀĞĚ ďŽƌƌŽǁŝŶŐƐ͕ ĂĚǀŝƐŽƌLJ ƐĞƌǀŝĐĞƐ͕ ĂŶĚ ůĞĂƐĞ ŽĨ ƉƌĞŵŝƐĞƐ͘ Transactions with fellow subsidiaries and other related parties mainly represent the sale of products of the Group, and transport services ͘ 31 COMMITMENTS AND CONTINGENCIES 31.1 Environmental matters dŚĞ ŽŵƉĂŶLJ͛Ɛ ŵĂŶĂŐĞŵĞŶƚ ďĞůŝĞǀĞƐ ƚŚĂƚ ƚŚĞ 'ƌŽƵƉ ĐŽŵƉůŝĞƐ ǁŝƚŚ ƚŚĞ ƌĞůĞǀĂŶƚ ĞdžŝƐƚŝŶŐ ůĞŐŝƐůĂƚŝŽŶ ŝŶ Ăůů ŵĂƚĞƌŝĂů ƌĞƐƉĞĐƚƐ͘ /ƚ ŝƐ ŶŽƚ ĞdžƉĞĐƚĞĚ ƚŚĂƚ ƚŚĞ 'ƌŽƵƉ ŵĂLJ ďĞĐŽŵĞ ůŝĂďůĞ ƚŽ ŵĂŬĞ ƐŝŐŶŝĨŝĐĂŶƚ ƉĂLJŵĞŶƚƐ ƌĞůĂƚŝŶŐ ƚŽ ƚŚĞ ĞŶǀŝƌŽŶŵĞŶƚ ŝŶ ƚŚĞ ĨƵƚƵƌĞ͘ 31.2 Capital expenditure The Group prepared a capital expenditure plan for 2016 amounting to EUR 19 533 thousand, of which EUR 1 790 thousand is contracted as at 31 ĞĐĞŵďĞƌ ϮϬϭϱ͘ 31.3 Litigation and potential losses At present,the Group is involved in anumber of legal cases a ŶĚ ŽƚŚĞƌĚŝƐƉƵƚĞƐ ƚŚĂƚ ĂƌŝƐĞ ĂƐ Ă ƌĞƐƵůƚ ŽĨ ŽƌĚŝŶĂƌLJ ďƵƐŝŶĞƐƐ ĂĐƚŝǀŝƚŝĞƐ͘ The Group created Ă ƉƌŽǀŝƐŝŽŶ ĨŽƌ ůŝƚŝŐĂƚŝŽŶ ĂŐĂŝŶƐƚ WŝƉĞdž /ƚĂůŝĂ ^͘Ɖ͘ ŝŶ ƚŚĞ ĂŵŽƵŶƚ ŽĨ hZ 839 ƚŚŽƵƐĂŶĚ͘ dŚĞ 'ƌŽƵƉ ĚŝĚ ŶŽƚ ĐƌĞĂƚĞ ĂƉƌŽǀŝƐŝŽŶ ĨŽƌ ŽƚŚĞƌ 'ƌŽƵƉ ůŝƚŝŐĂƚŝŽŶƐ in the accompanyingconsolidated financial statements, and based on the advice of its legal counsels,believes that the final outcome of the litigations ŝƐ ƵŶĐĞƌƚĂŝŶ͕ ĂŶĚ ŶŽ ŵĂƚĞƌŝĂů ŶĞŐĂƚŝǀĞ ŝŵƉĂĐƚ͕ ŝŶĚŝǀŝĚƵĂůůLJ Žƌ ŝŶ ĂŐŐƌĞŐĂƚĞ͕ ŝƐ ĂŶƚŝĐŝƉĂƚĞĚ ŽŶ ƚŚĞ ŽŵƉĂŶLJ͛Ɛ ĐŽŶƐŽůŝĚĂƚĞĚ ĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ͘ 31.4 Emission rights During 2005, the EU-wide greenhouse gas emission rights tradingscheme came into effect togetherwith the Act on Emission Rights Tradingpassed by the Slovak Parliament in order to implement the related h ŝƌĞĐƚŝǀĞ ŝŶ ^ůŽǀĂŬŝĂ͘ hŶĚĞƌ ƚŚŝƐ ůĞŐŝƐůĂƚŝŽŶ͕ ƚŚĞ ŽŵƉĂŶLJ ŝƐ ƌĞƋƵŝƌĞĚ ƚŽ ĚĞůŝǀĞƌ ĞŵŝƐƐŝŽŶ ƌŝŐŚƚƐ ƚŽ ƚŚĞ ^ůŽǀĂŬ ŶǀŝƌŽŶŵĞŶƚĂů KĨĨŝĐĞ ƚŽ ŽĨĨƐĞƚ ĂĐƚƵĂů ŐƌĞĞŶŚŽƵƐĞ ŐĂƐ ĞŵŝƐƐŝŽŶƐ͘ ƐŝŵŝůĂƌ ŽďůŝŐĂƚŝŽŶ ĂƉƉůŝĞƐ ƚŽ ƚŚĞ ƐƵďƐŝĚŝĂƌLJ  ^͕ Ă͘Ɛ͘ ŝŶ the njĞĐŚ ZĞƉƵďůŝĐ͘ The Group has opted to record emission rights received at a nominal amount, and does not record any asset or liability for actual emissions on the ďĂƐŝƐ ƚŚĂƚ ƚŚĞ 'ƌŽƵƉ ŚĂƐ ƌĞĐĞŝǀĞĚ ĂĚĞƋƵĂƚĞ ĞŵŝƐƐŝŽŶ ƌŝŐŚƚƐ ƚŽ ĐŽǀĞƌ ŝƚƐ ĂĐƚƵĂů ĞŵŝƐƐŝŽŶƐ͘ dŚĞ 'ƌŽƵƉ ŚĂƐ an obligation to deliver emission rights for ĂĐƚƵĂů ĞŵŝƐƐŝŽŶƐ͘ dŚŝƐ ŽďůŝŐĂƚŝŽŶ ǁĂƐ ĨƵůĨŝůůĞĚ ďLJ ƚŚĞ ĚĞůŝǀĞƌLJ ŽĨ ĞŵŝƐƐŝŽŶ ƌŝŐŚƚƐ ĨŽƌ ƚŚĞ ϮϬϭϱ ŵŽŶŝƚŽƌĞĚ ƉĞƌŝŽĚ ŝŶ DĂƌĐŚ ϮϬϭϲ͘ 31.5 Guarantee for loans provided to other entities The Group provides its assets ĂƐ ĐŽůůĂƚĞƌĂů ĨŽƌ ƚŚĞ ůŝĂďŝůŝƚŝĞƐ ŽĨ W/W y ^< Ɛ͘ƌ͘Ž͘ ĂƌŝƐŝŶŐĨƌŽŵ Ă ůŽĂŶ ĂŐƌĞĞŵĞŶƚ ǁŝƚŚ dĂƚƌĂďĂŶŬĂ Ă͘Ɛ͘ ƵƉ ƚŽ hZ 1 ŵŝůůŝŽŶ͘ The balance of the outstanding principal as at 31 December 2015 amounts to EUR ϳϬϬ ƚŚŽƵƐĂŶĚ͘ ^ŝŶĐĞ ƚŚĞ ŽŵƉĂŶLJ͛Ɛ ŵĂŶĂŐĞŵĞŶƚ ďĞůŝĞǀĞƐ ďĂƐĞĚ ŽŶ ƚŚĞ ĨŝŶĂŶĐŝĂů ƉŽƐŝƚŝŽŶ ŽĨ W/W y ^< Ɛ͘ƌ͘Ž͘ ƚŚĂƚ ƚŚĞ ĨĞůůŽǁ ƐƵďƐŝĚŝĂƌLJ ǁŝůů ƌĞƉĂLJ ƚŚĞ ůŽĂŶƐ͕ ƚŚĞ 'ƌŽƵƉ ƌĞĐŽƌĚĞĚ ŶŽ ƉƌŽǀŝƐŝŽŶƐ ŝŶ ƚŚĞ ĂĐĐŽŵƉĂŶLJŝŶŐ ĐŽŶƐŽůŝĚĂƚĞĚ ĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ͘ 32 EVENTS AFTER THE REPORTING PERIOD An agreement on the sale ŽĨ  ^͕ Ă͘Ɛ͘ ŝŶĐůƵĚŝŶŐ ŝƚƐ ƐƵďƐŝĚŝĂƌŝĞƐ͕ d^ WůnjĞŸ Ă͘Ɛ͘ ĂŶĚ  ^ ^'^ 'ŵď,͕ ǁĂƐ ƐŝŐŶĞĚ ŽŶ ϯϬ DĂƌĐŚ ϮϬϭϱ͘ dŚĞ ĐŽŵƉĂŶLJ will be sold and the ownership and control will be changed only after permits are granted by the competent state authorities and financing ďĂŶŬƐ͘ The sale is expected to take place by 30 :ƵŶĞ ϮϬϭϲ͘ From 31 December 2015 up to the issue date of the financial statements, there were no such events that would have a significant impact on the 'ƌŽƵƉ͛Ɛ ĂƐƐĞƚƐ ĂŶĚ ůŝĂďŝůŝƚŝĞƐ͕ ĞdžĐĞƉƚ ĨŽƌ ƚŚŽƐĞ ƌĞƐƵůƚŝŶŐ ĨƌŽŵ ƚŚĞ ŽƌĚŝŶĂƌLJ ĐŽƵƌƐĞ ŽĨ ďƵƐŝŶĞƐƐ ŽƉĞƌĂƚŝŽŶƐ͘ 33 APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS The consolidated financial statements were prepared and approved for issue on 20 April ϮϬϭϲ͘ 24 66