Annual Report 2003

REPORT BY THE BOARD OF DIRECTORS ANNUAL REPORT Ž E L E Z I A R N E P O D B R E Z O V Á 2 0 0 3 23 LIABILITIES AND EQUITY as of 31.12.2003 as of 31.12.2002 Total equity and liabilities 5 373 574 5 741 881 Equity 2 778 682 2 781 935 Share capital 2 384 135 2 384 135 Capital funds -99 14 332 Funds created from profit 78 607 64 801 Net profit/loss of previous years 227 083 180 607 Net profit/loss for the accounting period 88 956 138 060 Liabilities 2 584 956 2 863 710 Provisions 90 131 82 202 Non-current liabilities 722 723 802 415 - bonds issued 617 415 625 830 Current liabilities 639 500 774 256 - trade liabilities 497 626 643 421 Bank loans and financial assistance 1 132 602 1 204 837 - long-term bank loans 582 601 712 070 - current bank loans 550 001 492 767 Accruals/deferrals 9 936 96 236 Financial management An issuance of company's bonds in December 2002 in the amount of 15 million EURO laid the basis for a new financial strategy stretching to 2007. Long term and medium financing has been stabilised by 69 % covering by these recourses out of the total volume of bank loans and bonds. In order to equalize all creditors, pledges on company property has thoroughly been removed. The average interest rate topped at 4,35 %. Financing in euro represents more than 80 % of the total volume of bank facilities drawn and bonds outstanding, and corresponds with the currency structure of income from sales of products, including hedging operations. In the situation of ever strengthening SKK/EUR rate, we have produced financial derivates in the amount of 33,250 million EURO, to meet an expected exchange rate of 41,500 SKK/EUR. The company has met in full and on time, its obligations towards financial institutions and towards the state. Main figures of the Balance Sheet in thous. SKK