Annual Report 2010

2010 ANNUAL REPORT REPORT BY THE BOARD OF DIRECTORS The average drawing of credit facilities amounted to EUR 48,330 thousand during the year. Compared to 2009, bank loans experienced a drop of EUR 6,002 thousand. The average interes! rate on credit facilities reached the historically lowest level of 2.27% p. a., i.e. interes! paid in the amountof EUR 1,097 thousand. Credit facilities are secured by apledge over the company'stangible and intangible assets in favour of the banks. The value of the assets pledged in favour of abank is proportionally equal to the company'scredit exposure with the bank. The adoption of the euro in Slovakia contributed largely to eliminating the company's FX rate exposure. The surplus balance of foreign currencies has been only identified in relation to sales channels in the Czech Republic and Poland. Through a gradual increase of billing in euros to these territories, the need to use currency derivative instruments to hedge sales has been reduced. In 201 O,the company did not conclude any currencyfinancial derivatives. Satisfaction of Liabilities Lasi year, the company's financial position was balanced and stable. The company fulfilled its obligations to financial institutions, state and public authorities,as well as to all suppliers in adue and timely manner. Receivables as at 31 Dec 2010 Current receivables - Overdue receivables 1111111Allowance for doubtful amounts 87% 16% Payables as at 31 Dec 2010 - Current payables - Overdue payables 1