Annual Report 2010

2010 ANNUAL REPORT REPORT BY THE BOARD OF DIRECTORS REPORT ON ASSETS AND FINANCIAL MANAGEMENT Assets and Funds The company's total assets recognised as at 31 December 201Oin accordance with lnternational Financial Reporting Standards amounted to EUR 256,503 thousand, which means ayear-on-year increase of EUR 1.9 thousand, i.e. 0.76%. The increase resulted from ahigher balance of current assets by EUR 4,888 thousand,mainly in raw material inventories, products and work-in-progress, while the amount of non-current assets dropped by EUR 2,956 thousand owing to higher depreciation charges compared to investments in newassets, which were very conservative in the post-crisis period to maintain the company'sfinancial stability. In equity and liabilities,the increase resulted from ahigher amount of equity as positive results ofoperations in 201 O in the amount of EUR 9,854 thousand. The company's payables dropped by EUR 5,712 thousand, i.e. 7.0%. Interes! bearing loans and borrowings experienced the most significant drop, i.e. EUR 12,476 thousand, while trade receivables slightly increased. The equity to total assets ratio reached 70.3%, which means an increase of 2.5% year-on-year. The company's gearing dropped below 16.8%. As at 31 December 2010 the company acquired 32,620 treasury shares, i.e. 1.37% of shares representing the company's registered capital,as stipulated by the decision of the extraordinary general meeting held on 29 November 201 O. Structure of Assets as at 31 Dec 2010 - Property, pian! and equipment Financial assets - Receivables - lnventories Financial Management Structure of Liabilities as at 31 Dec 2010 3% - Equity lnterest-bearing loans and borrowings - Other non-current liabilities - Other current liabilities Since 2005, Železiarne Podbrezová a.s. has made efficient use of the "club financing" provided by four banking institutions (Citibank Europe plc, the branch of a foreign bank, Credit Agricole CIB S.A., the branch of a foreign bank, HSBC Bank plc, the branch of a foreign bank, and Tatra banka a.s.) to finance the development of its business activities. Club financing has helped maintain the financial stability, unify terms far the provision thereof, and streamline the loan management. Under the integrated documentation, the Company has available variable drawing of financial funds provided in the form of long-term loans, fixed tranches, or operative financing through overdraft facilities. Thanks to the long-term successful cooperation with the consortium of banks, in September 201 OŽeleziarne Podbrezová a.s. extended the loan agreement with a total credit line of EUR 30 million. The final maturity of loans provided by the consortium of banks in the total amount of EUR 40,085 thousand was set at July 2013. In 201 O, the club financing represented 83% of the total credit financing. The rest was supplemented by short-term loans provided by Slovenská sporiteľňa a.s. and Export-Import Bank ofSlovakia. 1