Central Securities Depository of Slovak Republic Ul. 29. augusta 1/A, Bratislava Annual Report of the CDCP

Transcription

1 Central Securities Depository of Slovak Republic Ul. 29. augusta 1/A, Bratislava Annual Report of the CDCP

2 C O N T E N T S 1. Introductory word Basic Data Main Activities Economic Results Enclosures: 1. List of Member as of 31 December Annual Statistics 3. Financial Statements - year

3 1. Introductory word In the year 2008, the Central Securities Depository of the Slovak Republic ( CDCP or central depository hereinafter) was facing strategic challenges that belonged to the most important in its 16-year history and were classified as the overall change of organization in terms of the Act No. 566/2001 Coll. on Securities and Financial Services (only the Act hereinafter) since April Transfer of securities owner s accounts at the CDCP level was successfully accomplished at the beginning of the year 2008 and more than 1,06 million of accounts became fully-fledged, i.e. owners of such accounts were able to perform also other operations with transferred securities, such as disposal or blocking. The transfer of securities owner s accounts was the necessary condition for systems transformation to the euro currency and making this step, the CDCP distinctively improved elements of security policy, support and sustainability of production systems. Another fundamental challenge was introduction of the euro currency in the Slovak Republic. Complex process of transformation of all production systems and support software applications was suitably designed and successfully terminated on 2 January The process currently proceeds on voluntary base of changes of registered capital of securities issuers. The process will be finalized at the end of the year 2009 when CDCP shall perform the general change of registered capital for all issuers who did not perform the change in the course of the year Under the given circumstances, the National Bank of Slovakia ( NBS hereinafter) asked the CDCP to minimize standard end-of-year technology break of the CDCP production systems. Due to meeting the requirement of the NBS, the adaptation time for changes in the system settings was notably decreased. Relationship and systemic co-operation with the NBS have changed essentially at the end of the year 2008 owing to introduction of new currency. The NBS, according to standard conditions of euro zone countries, terminated operation of the national inter-bank clearing system SIPS and since 1 January 2009 the NBS has been using TARGET 2 as its central clearing system, based on the SWIFT platform. These changes involved radical modifications of SPOZUS, a software application that is employed in CDCP as the main system for clearing and settlement of trades in securities. The CDCP, in terms of economy, coped with two crucial situations. The first one was the final negative judgment of The Supreme Court of SR in a passive legal proceeding with comp. JCG, a.s., by which an obligation to reimburse for loss of income and interest on late payment in total value of million SKK (19.5 million SKK was used from a reserve fund dedicated to above stated case) was imposed on the CDCP. The loss is currently settled from the CDCP operational income by means of action of executor, without the need to use external funds or to apply provision of law binding a shareholder to cover financial insufficiency of the CDCP. The second, positive appeal, was a decision to charge for administration of securities owner s accounts from 1 January 2008, after these accounts were transferred into a new production system Securities Register. Fee charged was calculated from the value of securities at the owner s account as of 31 December 2008 and this move represents revenue in value of more than 55.0 million SKK including VAT. In the course of the year 2008, the CDCP continued in effective economic policy with strategy to increase revenues by broadening of scope of provided services and, on the other side, by continual cost items and expenses check. These activities have been displayed in final 3

4 economic result loss amounting to 20.3 million SKK when aforementioned compensation for damage in value of million SKK was accounted. Economic Results of the Company The CDCP, as of 31 December 2008, accounted loss totalling 20.3 million SKK, as revenues amounted to million SKK and costs reached million SKK, while economic result projected for the year 2008 was a loss of 1.5 million SKK. However, total sum of costs is including also a damage compensation for the company JCG, a.s. in the amount of million SKK (loss million SKK and used reserves 19.5 million SKK) in terms of decree of the Supreme Court of SR detrimental to CDCP, delivered in July 2008 by the Supreme Court of SR. Nevertheless, after withdrawing damage compensation from the accounted economic result, the CDCP recorded the best economic result in its history, i.e. profit amounting to 82.1 million SKK. This result was achieved due to: - changes in the Scope of fees of CDCP primarily introduction of securities owner s account administration fee with revenue 47.2 million SKK - active approach to issuers of paper-form securities and increase in number of registered lists of shareholders by more than 400 issuers - effective management of active debts with aim to maximize voluntary payments. Transformation of the CDCP The CDCP, in situation when end-of-year technology break, according to the request of the NBS was reduced from 5 days to 1 day, transformed software applications successfully and the systems were ready to provide full scope of services to its clients since 2 January The central depository, in the course of the year 2008, was communicating with representatives of BSSE and ARDAL with the purpose to specify policy and partial procedures to ensure future compatible integration of the CDCP to the structure of European financial market. Integration with the BSSE After finalization of the project to build optical connection between the CDCP and the BSSE, the central depository leased offices in premises of the BSSE where IT specialists were located at, as well as data backup hardware technology, which is utilized also by the BSSE according the contractual relation. Change in the CDCP pricing policy The CDCP introduced owner s account administration fee by approving an Amendment No. 3 to the Scale of fees on 10 January 2008 in sequel to the transfer of the accounts to new register on 1 January 2008 and thus making them fully-fledged. Administration fee was charged to owners who kept securities with total nominal value higher than 200 thousand SKK on their owner s accounts. Moreover, the CDCP changed the Scale of fees to the benefit of issuers and other clients by specifying price ceilings for selected services or by setting of price ratios favourable to securities issuers. These changes were aimed to make security issues related services more attractive and partially ensure stability of revenues in future periods. 4

5 Practice in administration of passive legal disputes In the year 2008 the CDCP, in consent with company authorities approval, ordered to elaborate detailed legal expert opinion for three most important and compelling legal disputes. Some discussions with legal representatives of the Ministry of Finance of SR and the National Property Fund of SR (NPF hereinafter) took place in the year 2008 to unify practice in legal disputes in which all the parties are sued together. Except that, the CDCP decided to withdraw a Power of Attorney from the law office Aliancia advokátov to stand in for the central depository in specified legal proceedings. The Power of Attorney was granted to legal representatives law office of JUDr. Roštár and JUDr. Griščík, who co-operate with the major shareholder of Bratislava Stock Exchange, which is the only shareholder of the CDCP. Statistics of the year 2008 Total number of transactions in the year 2008 reached 16,498 what represents decrease by 44.4 % in comparison to the year Whole year value of transactions was 53.4 billion SKK, what is year on year decrease by 87.7%. Volume of book-entry securities in nominal value registered with the CDCP reached on 31 December 2008 an amount of 1,739.3 billion SKK, what means increase by 66.5% compared to the year Number of issues of bookentry securities registered with the CDCP, compared with the previous year, decreased by 0.4% to 3,252 issues. The CDCP administers a list of shareholders of registered shares for 3,292 issuers of physical registered shares, what represents an increase by 7.6%. Future of the CDCP In the light of the current economic crisis and the need to cover the state funds, new room for communication with ARDAL was created for CDCP, concerning government securities issues (eurobonds) registration and their possible placement at the European financial market. Optimisation of software solution for registration of securities is considered to be an important strategic task. Due to personnel and capacity reasons and higher priority assigned to other activities, the stage at which the CDCP dealt with this problem during the year 2008 was the identification of necessity to specify conditions and criteria of future software solution and also time scope and prerequisites level. This issue was carried forward, due to abovementioned reasons, also to 2009 company plan as one of the strategic tasks. The ECB TARGET2-Securities project is currently perceived as main activity of ECB in its communication with national banks of euro-zone countries, with European commercial banks, with supranational and national central depositories and regulatory authorities. The project, that is expected to be launched in 2013, significantly influences strategic goals of institutions with anticipated mutual inter-linking, till this date, heterogeneous national systems for registration and disposal of securities. Securities Repurchase project, being prepared under the auspices of the NPF based on the Act No. 160/2009 Coll., is bringing to natural persons possibility to transfer securities from their owner s accounts to a NPF account, provided that an individual considers securities held in her/his account to be valueless. CDCP presumes that the project will be launched in III.- IV.Q of the year A CCBM2 project stems, similarly as TARGET2 Securities, from the pressure of the ECB on securities collateralisation process standardization. The CDCP, following an appeal of the NBS, became a member of the National User Group, which should deal with CCBM2 5

6 implementation in conditions of the Slovak Republic. CCBM2 will provide the central banks with an IT platform for managing eligible collaterals used in the Eurosystem credit operations. This system will meet the principle of decentralized credit access. Ing. Peter Danko Chairman of the Board of Directors Ing. Štefan Marcinek Member or the Board of Directors 6

7 2. Basic data The CDCP was founded on 19 March 2004 by means of transformation of its predecessor, the Securities Center of the Slovak Republic ( SCP hereinafter). The SCP was established on 22 December 1992 in connection with the first wave of the voucher privatisation. Effective from 16 March 2006, Bratislava Stock Exchange ( BSSE hereinafter) became a 100-percent shareholder of the CDCP, as a result of deposit of a state property interest in the CDCP business into the Stock Exchange s registered capital. The ultimate objective of this transformation was privatisation of the BSSE CDCP group. The CDCP is a joint-stock company that operates on the basis of a license by National Bank of Slovakia or, respectively, by its predecessor The Financial Market Authority. The central depository s scope of activity includes mainly: Registration of issues of securities, Assignment of ISIN codes, Administration of securities accounts, Clearing and settlement of transactions in securities, Administration of the register of pledges over securities, Opening and administration of holder s accounts for members. The supreme body of the CDCP is the General Assembly, statutory body is the Board of Directors and supervisory body is the Supervisory Board. Advisory body for the Board of Directors is the Committee for Services. Activity of the CDCP is governed by the Rules of Operation, which, based on the proposal of the CDCP s Board of Directors, are approved by the National Bank of Slovakia. Registered capital of the CDCP is 316,000,000 SKK (10,489,304 ); the sole shareholder is the BSSE. The CDCP had 70 employees at the end of the year Bodies of the CDCP Bodies of the CDCP are formed by: The Board of Directors Chairman Ing. Peter Danko, since 10 November 2007 Members Ing. Štefan Marcinek, since 06 July 2004 Ing. Pavol Mihalkovič, since 10 November 2007 The Supervisory Board Chairman: Ing. Vladimír Kocourek, since 11 September 2007 Members: Mgr. Ján Foltán, since 11 September 2007 JUDr. Darina Hutová, elected in the election of representative of employees on 31 July 2007 Ing. Ján Vaculčiak since 12 August 2008 Ing. Miroslav Demjanovič since 12 August 2008 Mgr. Peter Stanček elected in the election of representative of employees on 18 December

8 3. Main activities 3.1. Processing of Transfer Orders Delivery versus Payment Transfers (DvP) In the course of the year 2008 the CDCP performed via the clearing and settlement system DvP transfers of securities in the total market price of billion SKK. The daily volume of settled securities averaged at 0.44 billion SKK. A total of 3,183 transfer orders, which resulted in DvP transfers of securities, were processed in the clearing and settlement system in The daily number of transfer orders settled in the clearing and settlement system averaged at 13.1 orders. Compared to the year 2007, the CDCP registered decrease by billion SKK in the value of securities transferred in the clearing and settlement system, what is a year-on-year decrease by 55.5 percent. The number of processed transfer orders decreased by 4,789; that is a year-on-year decrease by 60.1 percent. The value of DvP transfers of securities, and the number of respective transfers in the year 2008 showed decrease by more than 50% comparing to the year Free of Payment Transfers (FoP) The value of securities transferred as FoP transfers in 2008, expressed in nominal value, totalled at 1.52 trillion SKK, daily average value of FoP transfers was 6.17 billion SKK. In total 13,315 of transfer orders, which resulted in FoP transfer of securities, were processed in the year The average daily number of processed transfer orders, which resulted into FoP transfer, was 55 orders. In comparison with the year 2008, the value of FoP transfers of securities increased by 1.32 trillion SKK, what represents year-on-year increase by percent. In comparison to the year 2008, the number of processed FoP transfer orders, which resulted in the transfer of securities, decreased in the year 2008 by 8,360 orders, what represents year-on-year decrease by 38.6 percent Value of Securities in the CDCP s Register Year-end Balance in Owner s Accounts The total value of book-entry securities, in nominal value, which were credited to owner s accounts as of 31 December 2008 amounts to 1.73 trillion SKK. Out of that, the largest part were shares in total value of 1.16 trillion SKK. Number of issues of bookentry shares, which were issued at CDCP as of the end of the year 2008 amounted to issues. The value of bonds credited to owner s accounts as of 31 December 2008 was billion SKK. The value of co-operative units issued at CDCP amounted to 11.6 billion SKK. The value of units of the unit trust issued was million SKK. Other issues recorded value of 45.5 billion SKK. In comparison to the state as of the end of the year 2007, the total value of book-entry securities issued at CDCP, expressed in the nominal value, increased by billion SKK. That represents year-on-year increase by 66.6 percent. The highest increase indicated shares; their value, expressed in nominal value, grew by percent year-on-year. On the other side, moderate reduction appeared in the volume of co-operative units, which fell by 1.1percent on a year-on-year basis. 8

9 New Issues issued in the course of the year A total of 20 new issues of book-entry securities, in the value (expressed in nominal value) of 3.6 billion SKK, were issued at the CDCP in the course or the year Share issues represented the largest part of the new issues billion SKK, whereas the value of new bond issues totalled at 1.1 billion SKK. In the year 2008 there were issued 16 share issues and 4 new bond issues. No issue of book-entry units of the unit trust, or cooperative units issue was registered during the year Issues Cancelled in the course of the year A total of 32 issues of book-entry securities, kept in the register of the issuer, was cancelled during the year 2008 in the total nominal value of 8.9 billion SKK. The deepest fall indicated bonds 19 bond issues cancelled, with the total value amounting to 5.4 billion SKK. These were followed by 10 cancelled share issues, in the amount of 3.4 billion SKK, and 3 cancelled issues of co-operative units in the total value of million SKK. Issuer s Registers As of the end of the year 2008, the CDCP administered an issuer s register for 2,240 issuers of book-entry securities. It represents a decrease by 18 issuers compared to the year 2007 (-0,8% year-on-year). 3.3 Membership Principle The CDCP s activity is based upon membership principle. The membership is open to banks, securities dealers, foreign securities dealers, other central depositories or foreign central depositories, and the National Bank of Slovakia. As of the end of the year 2008, the central depository had 20 members (13 banks, 5 securities dealers, 1 foreign central depository, and the National Bank of Slovakia). New, the 20 th member of the CDCP is Citibank Europe plc., acting through organizational unit Citibank Europe plc., branch of a foreign bank, that was granted a membership from 1 January

10 4. Economic Results 4.1 Economic Result for the year 2008 Economic result for the year 2008 is a loss of 20,3 million SKK, at: a) Revenues of 219,3 million SKK, b) Expenses of 239,6 million SKK (including million SKK damage compensation to JCG, a.s.) In previous accounting period the CDCP posted a loss. The economic result decreased by 49.3 million SKK compared to the year Negative economic result stems from significant increase of expenses due to damage compensation. Aggregate costs are higher by million SKK in An introduction of owner s account administration fee was of cardinal importance with regards to booked revenues and represents additional revenues in the amount of 46.4 million SKK. Total revenues, compared to the year 2007, increased by 53.1 million SKK. Especially the administration fee for keeping owner s accounts allowed the CDCP to reduce impact of damage compensation on 2008 economy. 4.2 Development Projected for the year 2009 Due to organizational changes, restructuring of supplier-customer relations and owing to necessary system changes in context of projects that are being in progress or are planned for the year 2009 and onward, the CDCP projects the following items for the year 2009: a) Revenues of 5.27 million EUR (158.8 million SKK), b) Expenses of 5.17 million EUR (155.8 million SKK), c) Economic result: Profit of 100 thousand EUR (3.0 million SKK). 4.3 Proposal for Accounting of Loss from 2008 For the accounting period of the year 2008, the CDCP booked negative result in the amount of 20, 314, SKK. According to the article XXI, of the Company Statutes in force, and on the basis of audited economic results, the Board of Directors submits to the General Assembly the following proposal for accounting for loss, approved by the Supervisory Board: Loss for year 2008 Loss accounted on Unpaid loss from previous years 20, 314, SKK 20,314, SKK (674, ) Aggregate loss from previous years will be amounting million SKK after booking the loss from the year

11 Annex No. 1 List of members No. Name Address Phone number Date of admission 1 RM-S Market, o.c.p., a.s. Nám. SNP 14, Bratislava 02/ Slovenská sporiteľňa, a.s. Suché mýto 4, Bratislava 02/ Dexia banka Slovensko, a.s. Hodžova 11, Žilina 041/ Všeobecná úverová banka, a.s. Mlynské nivy 1, Bratislava Hodžovo námestie 3, 02/ Tatra banka, a.s. Bratislava UniCredit Bank Slovensko, a.s. Šancová 1/A, Bratislava 02/ Poštová banka, a.s. Prievozská 2/B, Bratislava OTP Banka Slovensko, a.s. Štúrova 5, Bratislava 02/ ING Bank, N.V. acting via organisational branch ING Bank N.V., Jesenského 4 C, Bratislava 02/ branch of the foreign bank 10 Istrobanka, a.s. Laurinská 1, Bratislava Imricha Karvaša 1, Národná banka Slovenska Bratislava 02/ Sympatia Finance, o.c.p., a.s. Trnavská 50, Bratislava 02/ Slávia Capital, o.c.p., a.s. Heydukova 6, Bratislava / VOLKSBANK Slovensko, a.s. Vysoká 9, Bratislava 02/ Sevisbrokers Finance, o.c.p., a.s. Kuzmányho 8, Žilina 041/ Citibank Europe plc., acting via organisational branch Citibank Europe Mlynské nivy 43, Bratislava 02/ plc., branch of the foreing bank 17 Krajowy Depozyt Papierów ul. Ksiazeca, nr.4, Wartościowych S.A. (Poland) Warszawa +4822/ Československá obchodná banka, a.s., Michalská 18, Bratislava 02/ J&T BANKA, a.s. acting via 19 organisational branch J&T BANKA, Lamačská cesta 3, Bratislava a.s., branch of the foreign bank 20 Jungmannova 745/24, 110 Patria Finance, a.s. 00 Praha 1, Česká republika

12 CENTRÁLNY DEPOZITÁR CENNÝCH PAPIEROV SR CENTRAL SECURITIES DEPOSITORY OF SR Mesačná štatistika Monthly Statistics December 2008 OBJEM A POČET PREVODOV SPOLU / Volume and Number of Transfers Total in SUM PREVODY DVP - TRHOVÁ CENA DVP Transfers - Market Value OBJEM V SKK Volume in SKK OBJEM V EUR Volume in EUR POČET No.of transfers PREVODY FoP - MENOVITÁ HODNOTA FoP Transfers - Nominal Value OBJEM V SKK Volume in SKK OBJEM V EUR Volume in EUR POČET No.of transfers OBJEM V SKK Volume in SKK PREVODY SPOLU Transfers Total OBJEM V EUR Volume in EUR POČET No.of transfers OBJEM ZAKNIHOVANÝCH CP V MENOVITEJ HODNOTE - STAV KU KONCU DECEMBRA 2008 Nominal Value of Book-entry Securities - as of End of December 2008 OBJEM V SK Volume in SKK OBJEM V EUR Volume in EUR POČ. EMISIÍ No. of Issues OBJEM SPOLU / Total Volume AKCIE/Shares DLHOPISY/Bonds PODIELOVÉ LISTY/Units DRUŽSTEVNÉ PODIELNÍCKE LISTY/Co-operative Units INÉ/Others OBJEM VYDANÝCH CENNÝCH PAPIEROV - DECEMBER 2008 / Volume of issued securities - December 2008 AKCIE / Shares 66% DLHOPISY / Bonds 30% PODIELOVÉ LISTY / Units 0% DRUŽSTEVNÉ PODIELOVÉ LISTY / Co-operative Units 1% INÉ / Others 3% NOVÉ VYDANÉ EMISIE ZAKNIHOVANÝCH CP - MENOVITÁ HODNOTA - DECEMBER 2008 Newly issued issues of book-entry securities - Nominal value - December 2008 OBJEM V SK Volume in SKK OBJEM V EUR Volume in EUR POČ. EMISIÍ No. of Issues OBJEM SPOLU / Total Volume AKCIE/Shares DLHOPISY/Bonds PODIELOVÉ LISTY/Units DRUŽSTEVNÉ PODIELNÍCKE LISTY/Co-operative Units INÉ/Others ZRUŠENÉ EMISIE ZAKNIHOVANÝCH CP VRÁTANE EMISIÍ, PRI KTORÝCH DOŠLO KU ZMENE PODOBY NA LISTINNÉ - MENOVITÁ HODNOTA - DECEMBER 2008 Cancelled Issues of Book-entry Securities including issues with change of form to paper securities-nominal Value-December 2008 OBJEM V SK Volume in SKK OBJEM V EUR Volume in EUR POČ. EMISIÍ No. of Issues OBJEM SPOLU / Total Volume AKCIE/Shares DLHOPISY/Bonds PODIELOVÉ LISTY/Units DRUŽSTEVNÉ PODIELNÍCKE LISTY/Co-operative Units INÉ/Others MESAČNÁ ŠTATISTIKA CDCP / CDCP MONTHLY STATISTICS 1

13 Accounting Statement on 2008 Annex No. 3 Balance Sheet as of 31 December 2008 The Assets Side (thousands of SKK) In current acc. period Title A S S E T S Line No. Gross Correction Net Previous acc. period TOTAL ASSETS (line 002+ line 003+ line 032+line 062) A. Receivables of subscribed own equity (353) B. Fixed assets (line 004+ line 013+ line 023) B.l Total long-term intangible assets (lines 005 through 012) B.I.1 Incorporation expenses (011) - /071,091A/ Capitalized development costs (012) - /072,091A/ Software (013) - /073,091A/ Valuable rights (014) - /074,091A/ Goodwill (015) - /075,091A/ Other long-term intangible assets (019,01X) - /079,07X,091A/ Acquisition of long-term intangible assets (041) Advance payments for long-term intangible assets (051) - 095A B.ll. Total long-term tangible assets (lines 014 through 022) B.II.1 Land (031) - 092A Buildings (021) - /081,092A/ Stand-alone movable objects and groups of movable objects (022) - /082,092A/ Perennial crops (025) - /085,092A/ Breeding and draught animals (026) - /086,092A/ Other long-term tangible assets (029,02X,032) - /089,08X,092A/ Acquisition of long-term tangible assets (042) Advance payments for long-term tangible assets (052) - 095A Adjustment to acquired assets (+/- 097) +/ B.lll. Total long-term financial assets (lines 024 through 031) B.III.1 Shares and ownership interests in controlled entity (061) - 096A Shares and ownership interests in enterprise with controlling influence (062) - 096A Other long-term securities and shares (063,065) - 096A Loans to accounting entity in consolidated whole (066A) - 096A Other long-term financial assets (067A,069,06XA) - 096A Loans with maturity of maximum of 1 year (066A,067A,06XA) - 096A Acquisition of long-term financial assets (043) - 096A Advance payments for long-term financial assets (053) - 095A C. Current assets (line 033+ line 041+ line 048+ line 056) C.l. Total inventory (lines 034 through 040) C.I.1 Materials inventory (112,119,11X) - /191,19X/ Work-in-process and semi-finished products (121,122,12X) - /192,193,19X/ Made-to-order production with expected finalization period of over 1 year 12X-192A Finished goods (123) Animals (124) Merchandise inventory (132,13X,139) - /196,19X/ Advance payments for inventory (314A) - 391A

14 C.ll. Total long-term receivables (lines 042 through 047) C.II.1 Trade receivables (311A,312A,313A,314A,315A,31XA) - 391A Receivables from controlled entity and controlling entity (351A) - 391A Other receivables within consolidated whole (351A) - 391A Receivables from partners, members and association (354A,355A,358A,35XA) - 391A 5. Other receivables (335A,33XA,371A,373A,374A,375A,376A,378A) - 391A Deferred tax receivable (481 A) C.lll. Total short-term receivables (lines 049 through 055) C.III.1 Trade receivables (311A,312A,313A,314A,315A,31XA) - 391A Receivables from controlled entity and controlling entity (351A) - 391A Other receivables within consolidated whole (351A) - 391A Receivables from partners, members and association (354A,355A,358A,35XA,398A) - 391A 5. Social insurance (336) - 391A Tax receivables (341,342,343,345,346,347) - 391A Other receivables (335A,33XA,371A,373A,374A,375A,376A,378A) - 391A C.lV. Total financial accounts (lines 057 through 061) C.IV.1 Cash (211,213,21X) Bank accounts (221A,22X +/-261) Tied-up bank accounts with term over 1 year 22XA Short-term financial assets (251,253,256,257,25X) - /291,29X/ Acquisition of short-term financial assets (259,314A) D. Accruals (line 063 and line 064) D.1 Deferred expenses (381,382) Accrued revenues (385) Balance Sheet as of 31 December 2008 The Liabilities Side Title L I A B I L I T I E S Line no. Current acc. period Previous acc. period TOTAL EQUITY AND LIABILITIES (line 066+ line 086+ line 116) A. Own equity (line 067+ line 071+ line 078+ line 082+ line 085) A.l. Total registered capital (lines 068 through 070) A.I.1. Registered capital (411 or +/-491) Own shares and interests (/-/252) Change of registered capital +/ A.ll. Total capital funds (lines 072 through 077) A.II.1. Share premium (412) Other capital funds (413) Legal reserve fund (Indivisible fund) from capital deposits (417,418) Gains or losses from revaluation of assets and liabilities (+/-414) Gains or losses from investments (+/-415) Gains or losses from revaluation upon merger and split (+/-416) 077 A.lll. Total profit generated funds (lines 079 through 081) A.III.1. Legal reserve fund (421) Indivisible fund (422) Statutory funds and other funds (423,427,42X) A.lV. Profit or loss of previous years line 083 and line A.IV.1. A.lV.1. Retained profit from previous years (428) Accumulated loss from previous years (/-/429)

15 A.V. Profit or loss for accounting period /+-/ line 001- (line 067+ line 071+ line 078+ line 082+ line 086+ line 116) B. Payables from line 087+ line 091+ line 102+ line B.l. Total reserves (lines 088 through 090) B.I.1. Legal reserves (451A) Other long-term reserves (459 A,45XA) Short-term reserves (323, 32X, 451A, 459A,45XA) B.ll. Total long-term payables (lines 092 through 101) B.II.1. B.ll.1. Long-term trade payables (479A) Long-term supplies not-invoiced (476A) Long-term payables to controlled entity and controlling entity (471A) Other long-term payables within consolidated whole (471A) Long-term advance payments received (475A) Long-term bills of exchange to be paid (478A) Bonds issued (473A,/-/255A) Payables to social fund (472A) Other long-term payables (474A,479A,47XA,372A,373A,377A) Deferred tax payable (481A) B.lll. Total short-term payables (lines 103 through 111) B.III.1. Trade payables (321,322,324,325,32X,475A,478A,479A,47XA) Not-invoiced supplies (326,476A) Payables to controlled entity and controlling entity (361A,471A) Other payables within consolidated whole (361A,36XA,471A,47XA) Payables to partners and association (364,365,366,367,368,398A,478A,479A) Payables to employees (331,333,33X,479A) Payables to social security (336,479A) Tax payables and subsidies (341,342,343,345,346,347,34X) Other payables (372A,373A,377A,379A,474A,479A,47X) B.lV. Total bank loans and aids (lines 113 through 115) B.VI.1. Long-term bank loans (461A,46XA) Current bank loans (221A,231,232,23X,461A,46XA) Short-term financial aids (241,249,24X,473A,/-/255A) 115 C. Total accruals (line 117 and line 118) C.I.1. Accrued expenses (383) Deferred revenues (384) Profit and Loss Statement as of 31 December 2008 Title I T E M Line no. Current Previous acc. period acc. period I. Revenues from sale of goods (604) 01 A Cost of goods sold (504, 505A) 02 + Sale margin line 01 line ll. Production line 05+line 06+ line II.1 Revenues from own products and services (601,602) Change in inventory of own production (+/- acc. group 61) Capitalization (acc. group 62) 07 0 B. Production consumption line 09+ line B.1 Consumption of materials, energy and other non-storable supplies (501,502,503, 505A) Services (acc. group 51)

16 + Added value line 03+ line 04- line C. Total personnel expenses (lines 13 through 16) C.1 Wages and salaries (521,522) Remuneration of company body members (523) Social insurance expenses (524,525,526) Social expenses (527,528) D. Taxes and fees (acc. group 53) E. Depreciation and adjustments to long-term intangible assets and long-term tangible assets (551,553) lll. Revenues from sale of long-term assets and material (641,642) F. Net book value of sold long-term assets and material (541,542) 20 IV. Other revenues from economic activity (644,645,646,648,655,657) G. Other expenses on economic activity (543,544,545,546,547,548,549,555,557) V. Transfer of revenues from economic activity (-) (697) 23 H. Transfer of expenses on economic activity (-) (597) 24 + Profit or loss from economic activity line 11-line 12-line 17-line 18+ line19-line 20+line 21-line 22+(-line 23)-(-line 24) VI. Revenues from sale of securities and ownership interests (661) 26 I. Securities and ownership interests sold (561) 27 VII. Revenues from long-term financial assets line 29+ line 30+ line VII.1 Revenues from securities and ownership interests in controlled entity and in company with controlling influence (665A) Revenues from other long-term securities and ownership interests (665A) Revenues from other long-term financial assets (665A) 31 VIII. Revenues from short-term financial assets (666) 32 J Expenses on short-term financial assets (566) 33 IX. Revenues from revaluation of securities and revenues from derivative operations (664,667) 34 K. Expenses on revaluation of securities and expenses of derivative operations (564,567) 35 L Creation and accounting of adjusting entries on financial assets +/ X. Interests received (662) M. Interests paid (562) 38 XI. Exchange rate gains (663) N Exchange rate losses (563) XII. Other revenues from financial activity (668) 41 O. Other expenses on financial activity (568,569) XIII. Transfer of financial revenues (-) (698) 43 P. Transfer of financial expenses (-) (598) 44 * Profit or loss from financial activity line26-line27+line28+line32-line33+line34-line35- line36+line37-line38+line39-line40+line41-line42+(-line43)-(-line44) R. Income tax on ordinary activity line 47+ line R.1. - due (591,595) deferred (+/-592) ** Profit or loss from ordinary activity line 25+ line 45- line XIV. Extraordinary revenues (acc. group 68) 50 S. Extraordinary expenses (acc. group 58) 51 T Income tax on extraordinary activity line 53+ line T.1 - due (593) deferred (+/-594) 54 * * Profit or loss from extraordinary activity line 50- line 51-line U Transfer of shares on profit or loss to partners (+/-) (596) 56 *** Profit or loss for accounting period (+/-) [line 49+ line 55- line56]

17 Cash Flow Statement (selected items) as of 31 December 2008 In thousands SKK Title Item name Current acc. period Previous acc. period Cash flow from operating activity Z/S Profit or loss from ordinary activity before income tax (+/-) A.1. Non-monetary operations affecting profit or loss from ordinary activity before income tax (+/-) Depreciations of long-term intangible assets and long-term tangible assets (+) Change in balance of reserves (+/-) Change in balance of adjustments (+/-) Change in balance of accruals of expenses and revenues (+/-) Interest accounted as revenues (-) Exchange rate differences (+/-) 22 5 Result from sale of long-term assets, except for those regarded as cash equivalent (+/-) Other items of non-monetary nature (+/-) A.2. Influence of changes in working capital on profit or loss from ordinary activity Change in balance of receivables from operating activity (-/+) Change in balance of payables from operating activity (+/-) Change in inventory balance (-/+) Cash flow from operating activity, except for revenues and expenses stated separately in other sections of Cash Flow Statement (+/-), (sum Z/S+A.1.+A.2.) Interests received (+) Expenses on income tax of accounting entity (-/+) A. Net cash flow from operating activity Cash flow from investment activity Expenses on acquisition of long-term intangible assets (-) Expenses on acquisition of long-term tangible assets (-) Revenues from sale of long-term tangible assets (+) B. Net cash flow from investment activity Cash flow from financial activity C.2. Cash flow in long-term and short-term payables from financial activity 0 0 Expenses related to payment of dividends and other shares on profit (-) C. Net cash flow from financial activity D. Net increase or net decrease of cash and cash equivalents (+/-) (sum A+B+C) E. Balance of cash and cash equivalents at the beginning of accounting period F. Exchange rate gains and losses of cash and cash equivalents as of the day of compilation of financial statement (+/-) G. Balance of cash and cash equivalents at the end of accounting period (sum D + E + F)