Annual Report 2005

Key assumptions used in actuarial valuation: PROVISIONS Warranties The provision for warranties relates mainly to machinery sold during the year ended 31 December 2005. The provision is based on estimates made from historical warranty data associated with similar products. Pending litigations The provision for pending litigations relates to claims raised against the Group. The timing of the incurrence of the liability is uncertain. However, the amount provided for was estimated based on the best information available (see Note 28). TRADE AND OTHER PAYABLES PERSONNEL EXPENSES The Group’s number of employees as at 31 December 2005 was 7 785 (2004: 7 984). OTHER FINANCIAL INCOME 20. 21. 22. 23. Trade payables Payables to associates and related parties Payables to employees and social security payables Other tax payables Other payables Total 1 634 023 170 431 199 079 48 090 11 044 2 062 667 31 December 2004 1 320 807 149 177 208 029 105 718 54 818 1 838 549 31 December 2005 Market yield on government bonds Annual future real rate of salary increases Annual employee turnover Retirement age 3.85% 3.00% 6.84% 62 years 31 December 2005 Balance at 1 January Provisions created during the year Provisions used during the year Balance at 31 December 14 029 44 123 (10 892) 47 260 Total 2004 47 260 31 624 (41 347) 37 537 Total 2005 22 317 21 823 (28 734) 15 406 Pending litigations 24 943 9 801 (12 613) 22 131 Warranties Present value of benefits paid on retirement Present value of length of service benefits Present value of anniversary benefits Total 59 556 20 629 16 076 96 261 31 December 2004 69 164 25 733 12 490 107 387 31 December 2005 Wages and salaries Social security contributions Total 1 939 870 678 337 2 618 207 Year ended 31 December 2004 2 181 473 785 997 2 967 470 Year ended 31 December 2005 Net foreign exchange gains (losses) Revenues from financial derivatives Other financial costs, net Total other financial income, net 120 497 24 993 (6 923) 138 567 Year ended 31 December 2004 92 930 25 727 (42 672) 75 985 Year ended 31 December 2005 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2005 (in thousand SKK) Consolidated financial statements Annual Report 2005 Železiarne Podbrezová 67