Annual report 2018

Železiarne Podbrezová a.s. ANNUAL REPORT 2018 22 22 Weighted average effective interest rate Up to 1 month 1 – 3 months 3 months to 1 year 1 – 5 years 5+ years Total Interest - free liabilities 22 074 825 443 507 3 506 935 39 982 40 26 065 289 Floating interest rate instruments (loans) 1.2 - 1.47% 16 376 466 10 875 33 229 3 025 738 - 19 446 308 Fixed interest rate instruments (loans) 2.00% 28 537 54 313 253 153 16 906 003 - 17 242 006 38 479 828 508 695 3 793 317 19 971 723 40 62 753 603 2017 Interest - free liabilities 19 520 996 279 584 3 247 965 50 248 1 652 23 100 445 Floating interest rate instruments (loans) 1.2 – 1.47% 6 084 361 4 219 555 33 229 3 069 842 - 13 406 987 Fixed interest rate instruments (loans) 2.00% 28 537 54 313 253 153 16 905 082 - 17 241 085 25 633 894 4 553 452 3 534 347 20 025 172 1 652 53 748 517 b) Fair value estimation The face values less any estimated credit adjustments for financial assets and liabilities with a maturity of 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. 31 RELATED PARTY TRANSACTIONS 31.1 Members of statutory and supervisory bodies Remuneration paid to the members of the Company’sBoard of Directors and Supervisory Board forthe year ended 31 December 2018 amounted to EUR 1 125 thousand (year ended 31 December 2017: EUR 315 thousand). Remuneration is included in personnel expenses. 31.2 Other related parties CPA s.r.o. is the parent company of ŽP. During 2018, the Company entered into the following transactions with related parties: Receivables as at 31 December 2018 Payables as at 31 December 2018 Sales of goods and services in 2018 Purchases of goods and services in 2018 Ultimate owners - 16 570 000 - - CPA s.r.o. - parent company 3 014 - 2 688 106 602 Subsidiaries and joint ventures 27 264 000 7 357 929 183 126 065 97 457 287 Other related parties 26 223 218 428 87 494 1 016 224 27 293 237 24 146 357 183 216 247 98 580 113 During 2017, the Company entered into the following transactions with related parties: Receivables as at 31 December 2017 Payables as at 31 December 2017 Sales of goods and services in 2017 Purchases of goods and services in 2017 Ultimate owners - 16 570 000 - - CPA s.r.o. - parent company 2 998 - 2 664 107 108 Subsidiaries and joint ventures 25 276 152 7 525 609 150 943 070 79 195 949 Other related parties 31 934 169 526 95 432 873 388 25 311 084 24 265 135 151 041 166 80 176 445 Transactions with ultimate owners comprise received borrowings. Transactions with the parent company represent advisory services and rental of premises. Transactions with subsidiaries and fellow subsidiaries represent sales of ŽP products, catering services, IT services, accommodation, leisure - time services, purchase of metal scrap, and. transportation services. 32 COMMITMENTS AND CONTINGENCIES 32.1 Environmental matters Management believes that the Company complies with the relevant existing legislation in all material respects. It is not expected that the Company will become liable to make significant payments relating to the environment in the future. 32.2 Capital expenditure The Company prepared a capital expenditure plan for 2019 amounting to EUR 15 922 thousand, of which EUR 6 032 thousand is covered by contracts at 31 December 2018. 32.3 Litigation and potential losses At present, the Company is involved in a number of legal cases and other disputes that have arisen as a result of its ordinary business activities. It is not expected that the disputes will have a significant negative impact, individually or jointly, on the accompanying separate financial statements. In the accompanying separate financial statements, the Company recorded no provisions for litigation as the Company’s management, based on the advice of its legal counsel, believes that the final outcome of the litigation is uncertain. 32.4 Emission rights During 2005, the European Union - wide greenhouse gas emission rightstrading scheme came into effect, together with the Act on Emission Rights Tradingpassedby the Slovak Parliament inorderto implementthe relatedEUDirective in Slovakia.Underthis legislation, the Company isrequired to deliver emission rights to the Slovak Environmental Office to offset actual greenhouse gas emissions. NOTES TO THE SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018 (IN EURO)