Annual report 2015

Notes to the Consolidated Financial Statements For the year ended 31 December 2015 (in euros) Železiarne Podbrezová a.s. Annual report 2015 Investments available for sale mainly include unconsolidated subsidiaries and insignificant companies in which the Group has an ownership interest of ůĞƐƐ ƚŚĂŶ ϮϬй͘ ůů ƚŚĞƐĞ ĐŽŵƉĂŶŝĞƐ ĂƌĞ ďĂƐĞĚ ŝŶ ^ůŽǀĂŬŝĂ Žƌ ŝŶ ƚŚĞ ǌĞĐŚ ZĞƉƵďůŝĐ͕ ĂŶĚ ŽŶĞ ĐŽŵƉĂŶǇ ŝƐ ďĂƐĞĚ ŝŶ ƵƐƚƌĂůŝĂ͘ dŚĞƐĞ ĐŽŵƉĂŶŝĞƐ ĂƌĞ ŶŽƚ ƌĞŐŝƐƚĞƌĞĚ ŽŶ Ă ƐƚŽĐŬ ĞǆĐŚĂŶŐĞ͘ dŚĞ ŝŶǀĞƐƚŵĞŶƚƐ ĂƌĞ ƌĞĐŽŐŶŝƐĞĚ Ăƚ Ă ĐŽƐƚ ůĞƐƐ ŝŵƉĂŝƌŵĞŶƚ͕ ŝĨ ĂŶǇ͕ ĂƐ ƚŚĞŝƌ ĨĂŝƌ ǀĂůƵĞ ĐĂŶŶŽƚ ďĞ ƌĞĂƐŽŶĂďůǇ ĞƐƚŝŵĂƚĞĚ͘ /Ŷ ϮϬϭϱ͕ ƚŚĞ 'ƌŽƵƉ ƐŽůĚ ŝƚƐ ŽǁŶĞƌƐŚŝƉ ŝŶƚĞƌĞƐƚ ŝŶ dZ E ŽďĐŚŽĚŶş Ěƽŵ ^ Ɛ͘ƌ͘Ž͕͘ ǌĞĐŚ ZĞƉƵďůŝĐ͘ 9 DEFERRED TAX ASSET AND LIABILITY The table below presents the most significant deferred tax assets and (liabilities) reported by the Group and movements in these items during the ĐƵƌƌĞŶƚ ĂŶĚ ƉƌĞǀŝŽƵƐ ĂĐĐŽƵŶƚŝŶŐ ƉĞƌŝŽĚ͗ 1 Jan 2015 (Debit)/Credit to profit for current year (Debit)/Credit to other comprehensive income and losses 31 Dec 2015 Property, plant and equipment (16 192 743) (281 040) - (16 473 783) Inventories 1 095 580 165 508 - 1 261 088 Receivables 153 134 (12 890) - 140 244 Financial derivatives 40 076 (18) (42 863) (2 805) Liabilities 350 668 (40 305) - 310 363 Provisions 651 031 226 497 - 877 528 Employee benefits 1 534 296 (179 813) - 1 354 483 Tax loss carry-forward 233 628 (12 921) - 220 707 Subsidies 112 302 (112) - 112 190 Net deferred tax (12 022 028) (135 094) (42 863) (12 199 985) 1 Jan 2014 (Debit)/Credit to profit for current year (Debit)/Credit to other comprehensive income and losses 31 Dec 2014 Property, plant and equipment (16 643 965) 451 222 - (16 192 743) Inventories 1 238 682 (143 102) - 1 095 580 Receivables 104 722 48 412 - 153 134 Financial derivatives 58 373 52 (18 349) 40 076 Liabilities 337 120 13 548 - 350 668 Provisions 1 051 367 (400 336) - 651 031 Employee benefits 1 286 635 247 661 - 1 534 296 Tax loss carry-forward 540 571 (306 943) - 233 628 Subsidies 146 886 (34 584) - 112 302 Net deferred tax (11 879 609) (124 070) (18 349) (12 022 028) /Ŷ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ ƚŚĞ 'ƌŽƵƉ͛Ɛ ĂĐĐŽƵŶƚŝŶŐ ƉŽůŝĐŝĞƐ͕ ĐĞƌƚĂŝŶ ĚĞĨĞƌƌĞĚ ƚĂǆ ĂƐƐĞƚƐ ĂŶĚ ůŝĂďŝůŝƚŝĞƐ ǁĞƌĞ ŽĨĨƐĞƚ͘ dŚĞ ƚĂďůĞ ďĞůŽǁ presents the balances of ĚĞĨĞƌƌĞĚ ƚĂǆ ;ĂĨƚĞƌ ŽĨĨƐĞƚƚŝŶŐͿ ĨŽƌ ƚŚĞŝƌ ƌĞƉŽƌƚŝŶŐ ŝŶ ƚŚĞ ƐƚĂƚĞŵĞŶƚ ŽĨ ĨŝŶĂŶĐŝĂů ƉŽƐŝƚŝŽŶ͗ 31 Dec 2015 31 Dec 2014 Deferred tax asset 681 082 300 849 Deferred tax liability (12 881 067) (12 322 877) Total (12 199 985) (12 022 028) 10 INVENTORIES 31 Dec 2015 31 Dec 2014 Material and spare parts 32 924 307 37 094 078 tŽƌŬ ŝŶ ƉƌŽŐƌĞƐƐ 30 662 750 36 301 096 Finished goods 23 567 773 23 393 105 Merchandise 2 781 335 2 613 278 Provision (5 058 953) (4 270 355) Total inventories 84 877 212 95 131 202 As at 31 December 2015, no inventories were pledged to secure bank loans (31 ĞĐĞŵďĞƌ ϮϬϭϰ͗ hZ ϬͿ ;ƐĞĞ EŽƚĞ ϭϱͿ͘ As at 31 December 2015, due to a decrease in the net realisable value of inventories, the Group created a provision for inventories based on their ĂŐĞŝŶŐ ƐƚƌƵĐƚƵƌĞ Žƌ ĚƵĞ ƚŽ Ă ĚĞĐƌĞĂƐĞ ŝŶ ƚŚĞŝƌ ŶĞƚ ƌĞĂůŝƐĂďůĞ ǀĂůƵĞ͘ dŚĞ ĐŚĂŶŐĞ ŝŶ ƚŚĞ ďĂůĂŶĐĞ ŽĨ ƚŚĞ ƉƌŽǀŝƐŝŽŶ ĨŽƌ ŝŶǀĞŶƚŽƌŝĞƐ ŝƐ ŝŶĐůƵĚĞĚ ŝŶ ͞KƚŚĞƌ ŽƉĞƌĂƚŝŶŐ ĞǆƉĞŶƐĞƐ͟ ĂŶĚ ͞KƚŚĞƌ ŽƉĞƌĂƚŝŶŐ ŝŶĐŽŵĞ͘͟ Insurance of inventories Insured assets Type of insurance Name and address of the insurance company ŵŽƵŶƚ ŝŶƐƵƌĞĚ Inventories (work in progress, semi- finished goods, finished products) Against all risks ůůŝĂŶǌ - ^ůŽǀĞŶƐŬĄ ƉŽŝƐƛŽǀŸĂ͕ Ă͘Ɛ͕͘ ƌĂƚŝƐůĂǀĂ͖ ůůŝĂŶǌ ^ůŽǀĞŶƐŬĄ ƉŽũŝƓƛŽǀŶĂ͖ hE/Y ; KE 'ĞŶŽǀĂͿ͖ y ^ĞŐƵƌŽƐ 'ĞŶĞƌĂůĞƐ 88 248 400 15 57