Annual report 2016

ANNUAL REPORT 2016 • Železiarne Podbrezová a.s. 22 22 Weighted average effective interest rate Up to 1 month 1 – 3 months 3 months to 1 year 1 – 5 Years 5+ years Total 2016 Interest - free liabilities 13 963 031 187 706 4 205 910 3 312 1 458 18 391 417 Floating interest rate instruments (loans) 1.47% - 10 875 33 229 3 113 946 - 3 158 050 Fixed interest rate instruments (loans) 2.00% 28 537 54 313 253 153 17 241 085 - 17 577 088 13 991 568 252 894 4 492 292 20 388 343 1 458 39 126 555 2015 Interest - free liabilities 14 498 591 1 504 387 1 096 853 - - 17 099 831 Floating interest rate instruments (loans) 1.67% 6 015 505 1 176 653 3 534 380 23 009 006 - 33 735 544 Fixed interest rate instruments (loans) 2.60% 38 061 73 667 337 639 17 335 183 - 17 784 550 20 552 157 2 754 707 4 968 872 40 344 189 - 68 619 925 b) Fair value estimation The face values less any estimated credit adjustments for financial assets and liabilities with a maturity of less than one year are assumed to approximate theirfairvalues.The fairvalueof financial liabilitiesfordisclosurepurposes isestimatedbydiscountingthe futurecontractualcash flows at the current market interest rate available to the Company for similar financial instruments. 31 RELATED PARTY TRANSACTIONS 31.1 Members of statutory and supervisory bodies Remuneration paid to the members of the Company’s Board of Directors and Supervisory Board for the year ended31 December 2016amounted to EUR 182 thousand (year ended 31 December 2015: EUR 140 thousand). Remuneration is included in personnel expenses. 31.2 Other related parties CPA s.r.o. is the parent company of ŽP. During 2016, the Company entered into the following transactions with related parties: Receivables as at 31 Dec 2016 Payables as at 31 Dec 2016 Sales of goods and services in 2016 Purchases of goods and services in 2016 Ultimate owners - 16 570 000 - - CPA s.r.o. - parent company 2 953 134 328 3 026 298 Subsidiaries and joint ventures 20 277 398 4 592 947 127 445 689 57 944 094 Fellow subsidiaries - - - - Other related parties 43 721 199 010 133 163 676 706 Total 20 324 072 21 361 957 127 713 180 61 647 098 During 2015, the Company entered into the following transactions with related parties: Receivables as at 31 Dec 2015 Payables as at 31 Dec 2015 Sales of goods and services in 2015 Purchases of goods and services in 2015 CPA s.r.o. - parent company 24 109 17 000 000 219 091 553 779 Subsidiaries and joint ventures 14 864 197 4 335 894 104 900 352 70 610 448 Fellow subsidiaries 597 180 17 696 43 123 215 23 501 Other related parties 103 894 42 945 97 377 494 611 Total 15 589 380 21 396 335 148 340 035 71 682 339 Transactions with ultimate owners comprise received borrowings. Transactions with the parent company represent advisory services and rental of premises.Transactions withsubsidiariesand fellowsubsidiariesrepresentsalesofŽPproducts,cateringservices, ITservices,accommodation, leisure - time services and purchase of metal scrap. Transactions with joint ventures mainly represent transportation services. 32 COMMITMENTS AND CONTINGENCIES 32.1 Environmental matters Management believes that the Company complies with the relevant existing legislation in all material respects. It is not expected that the Company will become liable to make significant payments relating to the environment in the future. 32.2 Capital expenditure The Company prepared a capital expenditure plan for 2017 amounting to EUR 5 554 thousand, of which EUR 1 863 thousand is covered by contracts at 31 December 2016. 32.3 Litigation and potential losses At present, the Company is involved in a number of legal cases and other disputes that have arisen as a result of its ordinary business activities. It is not expected that the disputes will have asignificant negative impact, individually or jointly, on the accompanying separate financial statements. In the accompanying separate financial statements, the Company recorded no provisions for litigation as the Company’s management, based on the advice of its legal counsel, believes that the final outcome of the litigation is uncertain. NOTES TO THE SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016 (IN EUROS)