Annual Report 2010

2010 ANNUAL REPORT NOTES TO THE SEPARATE FINANCIAL STATEMENTS FORTHE YEARENDED 31 DECEMBER2010 (in euros) The following table presents the Company's sensitivity to a 25% increase/decrease in the euro against the US dollar, a 20% increase/decrease in the euro against the Czech crown, Polish zloty and Swiss franc. The sensitivity analysis includes moneta ry items denominated in foreign currencies and adjusts their translation at the end ot the reporting period for the aforementioned change in foreign currency rates. Positive balances indicate an increase in profit and other equity items upon a decrease ot euros against the relevant currency. Appreciation of the euro against the relevant currency would result in a similar but opposite impact on profit and other equity items, while data presented below would be negative. 31 December 2010 31December2009 31December2010 31 December 2009 USD CZK Profit or loss (-) -10 231 7 670 63 091 1 041 596 PLN CHF Profit or loss (-) 577 311 714 808 3 196 Liquidity risk Prudent liquidity risk management implies maintaining sufficient cash with adequate due date and marketable securities, the availability ot funding through an adequate amount ot committed credit lines and the ability to close out market positions. The following tables summarise the residual maturity period ot the Company's non-derivative financial liabilities. The tables have been prepared based on undiscounted cash flows trom financial liabilities assuming the earliest possible date on which the Company can be required to settle the liabilities. The table includes cash flows trom both the interes! and principal during the term ot a loan agreement. Weighted 5+ average Up to 1 -3 months 3 months to 1 - 5 years Total effective 1 month 1 year years interes! rate 2010 lnterest-free liabilities 24 240 865 33 388 1159 431 175 699 25 609 383 Floating interes! rate 2.43% 787 915 562 554 12 196 629 30 927 622 44 474 721 instruments (loans) Finance lease obligations 9.40% 11 314 22 629 101 830 203 714 339 486 25 040 094 618 571 13 457 890 31 307 035 70 423 590 2009 lnterest-free liabilities 16710787 18472 1 193 489 366144 18 288 892 Floating interes! rate 2.46% 3 046 590 3 648 279 24 683 988 18 816 556 50195413 instruments (loans) Fixed interes! rate instruments (interest-bearing liability to the 3.00% 6 591 494 6 591 494 parent company) Finance lease obligations 9.40% 15 982 31 964 143 836 312 406 504 187 19 773 359 3 698 715 32612806 19495106 75 579 987 The following table summarises the Company's liquidity analysis with respect to financial derivatives. The table has been prepared based on undiscounted net cash inflows/outflows(-) trom financial derivatives that can be settled by the Company either net or gross. b) Fair value estimation The fair value ot publicly traded derivatives and available-for-sale securities is based on quoted market prices at the reporting date. The fair value ot interes! swaps is calculated as the present value of the estimated future cash flows. The fair value of forward foreign exchange contracts is determined using forward exchange market rates at the reporting date. In assessing the fair value of non-traded derivatives and other financial instruments, the Company uses a variety of methods and market assumptions that are based on market conditions existing at the reporting date. Other techniques, mainly the estimated discounted value of future cash flows, are used to determine the fair value of the remaining financial instruments. The face values less any estimated credit adjustments for financial assets and liabilities with a maturity ot less than one year are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate available to the Company for similar financial instruments. Fair value measurements recognised in statement otfinancialposition The Company recognised financial instruments that are measured subsequent to initial recognition at fair value. Those financial instruments comprise financial liability at FVTPL: derivative instruments as at 31 December 2010 in the amount of EUR 522 thousand (2009: derivative financial asset in the amount of EUR 138 thousand, derivative financial liability in the amount of EUR 1 605 thousand). Fair value measurements of reported financial instruments are those derived trom inputs other than unadjusted quoted prices in active markets for identical assets or liabilities that are observable for the asset or liability, either directly or indirectly. 1