Annual Report 2011

Ž E L E Z I A R N E P O D B R E Z O V Á A . S . FinancialManagement Since2005,ŽeleziarnePodbrezováa.s.hasmadeefficientuseofthe“clubfinancing”providedbyfourbankinginstitutions(CitibankEuropeplc,abranch of a foreign bank; Credit Agricole CIB S.A., a branch of a foreign bank; HSBC Bank plc, a branch of a foreign bank; and Tatra banka a.s.) to finance the development of its business activities. Club financing has helped to maintain financial stability, unify terms for the provision thereof, and streamline loan management. Under the integrated documentation, the Company has the ability to draw variable amounts from the financial funds provided in the form of long-term loans, fixed tranches, or operative financing through overdraft facilities. The final maturity of the loans provided by the consortium of banks was set at July 2013. The consortium of banks' participation in the Company's total credit line in the amount of EUR 52,300 thousand represented 70%. The rest was supplemented by short-term loans provided by Slovenská sporiteľňa a.s. and the Export-Import Bank of Slovakia. TheaveragedrawingofcreditfacilitiesamountedtoEUR46,272thousandovertheyear.Theaverageinterestrateoncreditfacilitiesreached3.05%p.a., i.e.interestpaidintheamountofEUR1,413thousand. Credit facilities are secured by a pledge over the Company's tangible and intangible assets in favour of the banks. The value of the assets pledged in favourofabankisproportionallyequaltotheCompany'screditexposurewithsaidbank. The adoption of the euro in Slovakia in 2009 largely contributed to the elimination of the Company's FX rate exposure. The surplus balance of foreign currencies has only been identified in relation to sales channels in the Czech Republic and Poland.Through a gradual increase in billing in euros to these territories, the need to use currency derivative instruments to hedge sales has been reduced. In 2011, the Company did not conclude any currency financialderivatives. 20 Data from Separate IFRS Statement of Financial Position As at 31 December 2011 (in EUR thousand) 31 ec 2011 D 31 ec 2010 D ASSETS NON-CURRENT ASSETS CURRENT ASSETS TOTAL ASSETS Property, plant and equipment Intangible assets Investments in subsidiaries, joint-ventures and associates Available-for-sale investments Other assets Inventories Trade receivables and other financial assets Tax receivables Other current assets Cash and cash equivalents Total non-current assets Total current assets 92 039 95 95 008 125 1 683 188 950 44 986 38 757 15 122 440 84 320 273 270 87 400 18 99 368 127 144 40 874 27 590 15 167 801 256 503 187 056 69 447 REPORT BY THE BOARD OF DIRECTORS ON THE BUSINESS ACTIVITIES, ASSETS, AND FINANCIAL PERFORMANCE IN 2011 AND INFORMATION ON THE BUSINESS PLAN