Annual Report 2008

REPORT BY THE BOARD OF DIRECTORS 2 o o 8 REPORT BY THE BOARD OF DIRECTORS ON ASSETS, FUNDS AND FINANCIAL MANAGEMENT Assets and Funds Recognised as at 31 December 2008 in accordance with lnternational Financial Reporting Standards,the Company's total assets amounted to SKK 8 434.3 million (EUR 280.0 million), which represents an increase of 0.65%year-on-year. Non-current assets increased by SKK 375.5 million (EUR 12.5million) mainly due to a new acquisition - the Transmesa Group in Spain, in the total amount of SKK 436.9 million (EUR 14.5 million), which was performed by Železiarne Podbrezová a.s. in the period of the economic boom in the steel industry. In contrast, current assets decreased by SKK 321.0 million (EUR 10.7 million) as a result of a significant decrease in receivables, i.e. by SKK 427.7 million (EUR 14.2 million), and in inventories, i.e. by SKK 78.9 million (EUR 2.6 million), while cash and cash equivalents increased. In 2008,the liabilities structure showed positive changes. Despite significant capital investments in non-current assets,the share of own funds in the Company's funding increased to 64%(an increase of 2%). As at 31 December 2008, the equity was recognised in the amount of SKK 5 398.4 million (EUR 179.2 million), which represents SKK 2 264 (EUR 75) per share. The Company's liabilities decreased by SKK 148.4 million (EUR 4.9 million), with mainly trade payables decreasing by SKK 136.1 million (EUR 4.5 million) and the gearing increasing by SKK 290.7 million (EUR 9.6 million) Structure of Assets as at 31. 12. 2008 100% Property, plant and equipment 33% Financial assets 34% Receivables 14% lnventories 17% Other assets 2% Structure of Liabilities asat31.12.2008 100% Equity 64% lnterest-bearing loans 20% and borrowings Other non-current liabilities 4% Other current liabilities 12%