ANNUAL REPORT. PRVI FAKTOR d.o.o., Ljubljana

Transcription

1 2009 ANNUAL REPORT PRVI FAKTOR d.o.o., Ljubljana

2 ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA 1 Business report 50

3 1.0 Statement by the director Dear Ladies and Gentlemen! The business environment in which the Prvi faktor Group lives and operates was deeply affected by the global financial and economic crisis in After the first warning signs in the second half of 2007, the crisis has grown rapidly to achieve vast dimensions in 2009, its negative effects being particularly pronounced in the south-eastern Europe. Such tightened and unpredictable conditions reflected also on the operations of the Prvi faktor Group. In 2009, all countries where it operates experienced a further drop in GDP and in particular in industrial production and export, which are the two most important factors affecting our industry. ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA In 2009, the Prvi faktor Group concluded new contracts of total EUR 818 million, which is 21 percent less than in 2008 and 8 percent below the plan. This is attributable not only to the weakening economic activity, but also to the debtor s liquidity management and credit rating. Not only did sales fall due to the negative global developments, accounts receivable also had to be impaired and written off. Despite this, the Group earned a net profit of slightly above EUR 1 million. Equity stood at EUR 11 million as at year-end, which is 24 percent less than a year ago, while total assets stood at EUR 336 million, which is 9 percent less than a year ago. 51 Group companies were variously successful. In terms of concluded new contracts, Prvi faktor Zagreb was the most successful with EUR 377 million, which was 19 percent less than in The company achieved its objectives for the year and earned a net profit of EUR 1 million. Prvi faktor Belgrade experienced the smallest fall in revenues (12 percent), which were EUR 193 million, practically on plan, and earned a net profit of EUR 43 thousand. Prvi faktor Ljubljana experienced a 28-percent fall in new concluded contracts. With EUR 217 million, it lagged behind the plan by 21 percent, but still earned a net profit of almost EUR 2 million. The worst-off was Prvi faktor Sarajevo: the amount of new concluded contracts of EUR 31 million was 36 percent below the 2008 figure and 38 percent below the plan, and it ended the year making a loss of EUR 273 thousand. Throughout the year, we took numerous measures that were adjusted, if necessary, to reflect the current market conditions and developments, and thus managed to reduce the negative effects of the crisis and demonstrated that the Group companies are able to adopt strategic decisions that will help us get through the crisis in This, we are aware, is going to be a difficult year that will require a lot of effort from us, as it will certainly bring new trials and challenges. I am confident that, relying on our expertise, commitment and client-orientation, we will be able to overcome such trials and challenges, continue the development of the Prvi faktor Group and enter the following year even stronger. Ernest Ribič Director

4 ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA 1.1 Company profile General information Prvi faktor, družba za opravljanje poslov faktoringa d.o.o., Ljubljana (hereinafter PF Ljubljana) is entered in the register of the Ljubljana District Court under no. 061/12540/00. Name: PRVI FAKTOR, faktoring družba, d.o.o. Abbreviated name: PRVI FAKTOR d.o.o. Registered office: Slovenska 17, SI-1000 Ljubljana, Slovenia Share capital: EUR 3,168,419 Legal form: Limited Liability Company Company ID no.: Tax number: Size: large company under the Companies Act (Article 55(8)) Bank account: Financial year: calendar The company had 38 employees as at 1 January and 31 December 2009 respectively, while the average number of employees in 2009 was 37. In 2009, 5 new employees were hired. The company is owned by two Slovenian banks: Owner Share (%) Share (EUR) Nova Ljubljanska banka d.d., Ljubljana 50 1,584,209,50 SID-Slovenska izvozna in razvojna banka, d.d., Ljubljana 50 1,584,209,50 Total share capital 100 3,168,419,00 Governance bodies Shareholders' Meeting Director 52 Ernest Ribič as director represents the company without limitations. Information on Prvi faktor Group On 17 March 2003, Prvi faktor d.o.o., Zagreb (hereinafter PF Zagreb), was entered in the register of a Zagreb court. The company, which is 100-percent owned by Prvi faktor, Ljubljana (hereinafter PF Ljubljana), commenced operations in March The parent last increased its share capital on 17 July 2007 by HRK 5,859,391.20, so that it stood at HRK 19,466, as at 31 December On 24 February 2005, Prvi factor - faktoring d.o.o., Belgrade (hereinafter PF Belgrade), was entered in the register of a Belgrade court. The company, which is 100-percent owned by PF Ljubljana, commenced operations in March The parent last increased its share capital on 29 June 2007 by EUR 700,000.00, so that it stood at EUR 1,250, as at 31 December On 27 February 2006, Prvi faktor d.o.o., Sarajevo (hereinafter PF Sarajevo), was entered in the register of a Sarajevo court, its start-up capital being KM 100, The company, which is 100-percent owned by PF Ljubljana, commenced operations in March The parent last increased its share capital on 18 September 2007 by KM 782,332.00, so that it stood at KM 882, as at 31 December On 22 September 2006, Prvi faktor d.o.o., Skopje (hereinafter PF Skopje), was entered in the central register of Macedonia, its start-up capital being EUR 5, The company, which is 100-percent owned by PF Ljubljana, has not yet commenced operations. Its share capital is EUR 5, As at 31 December 2009, the Prvi faktor Group comprised the following members: PF Ljubljana as the parent company, and PF Zagreb, PF Belgrade and PF Sarajevo as subsidiary companies.

5 Agencies PF Ljubljana has no agencies. Activities The main activity of the company is providing factoring services to clients established in Slovenia and abroad with regard to their accounts receivable arising from the sale/provision of goods/services. Factoring services mainly comprise the following: recourse and non-recourse purchasing of accounts receivable arising from the sale/provision of goods/services, provision of cash in exchange for accounts receivable purchased, administration of accounts receivable purchased, collection of accounts receivable purchased, dealing in accounts receivable purchased, acting as an agent or representative for factoring in Slovenia and abroad, accounts receivable insurance, recovery of problematic accounts receivable. Business network abroad Company name: PRVI FAKTOR, društvo s ograničenom odgovornošču za faktoring, Zagreb Abbreviated name: PRVI FAKTOR d.o.o., Zagreb Registered office: Hektorovićeva 2/V, Zagreb, Croatia Phone: Fax: Director: Tomaž Kačar [email protected] ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA Osijek agency Ribarska 4, Osijek, Croatia Phone: Fax: Rijeka agency Riva 8, Rijeka, Croatia Phone: Fax: Split agency Bihačka 2 a, Split, Croatia Phone: Fax: LJUBLJANA Rijeka Zagreb Banja Luka Osjek Novi Sad Beograd Split Sarajevo Mostar Niš Skopje

6 ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA Company name: PRVI FAKTOR-faktoring, društvo s ograničenom odgovornošču, Beograd Abbreviated name: PRVI FAKTOR-faktoring d.o.o., Beograd Registered office: Bulevar Mihajla Pupina 165/v, Novi Beograd, Serbia Phone: Fax: Director: Dmitar Polovina [email protected] Niš agency Ul. 7. Juli 25a/II, Niš, Serbia Phone: Fax: Novi Sad agency Radnička 24, lokal 3, Novi Sad, Srbija Phone: Fax: Company name: PRVI FAKTOR, društvo sa ograničenom odgovornošču za finansijski inžinjering, Sarajevo Abbreviated name: PRVI FAKTOR d.o.o., Sarajevo Registered office: Džemala Bijedića bb, Sarajevo, Bosnia and Herzegovina Phone: Fax: Director: Nedim Rizvanović [email protected] Mostar agency Kralja Petra Krešimira IV bb, Mostar, Bosnia and Herzegovina Phone: Fax: Banja Luka agency Aleja svetog Save 7a, Banja Luka, Bosnia and Herzegovina Phone: Fax: Company name: PRVI FAKTOR d.o.o.e.l. (the company has not yet commenced operations) Registered office: Mito Hađivasiljev Jasmin 20, 1000 Skopje, Macedonia Phone: - Fax: - Director: Ernest Ribič -

7 1.2 Poslovanje v letu 2009 New contracts concluded in 2009 as compared with 2008 and plan 2009 (EUR) Plan Index Index / /Plan = 2/1 5 = 2/3 PF Ljubljana Domestic factoring 236,784, ,055, ,000, Export factoring 32,880,367 16,051,199 27,500, Import factoring 30,983,647 23,883,193 27,500, TOTAL 300,648, ,990, ,000, Share (%) Domestic factoring Export factoring Import factoring Already in the 2008 annual report, we said that it would be difficult to maintain the same volume of business in The bad economic situation that resulted from the financial crisis affected also our business. Compared to 2008, new contracts concluded fell by almost 30 percent and were also slightly more than 21 percent below the plan. The structure of new contracts concluded by factoring types remained more or less the same as in ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA Factoring services provided in 2009 by type Import 11 % 55 Domestic 82 % Export 7 % Companies having as their main activity one of the top 10 activities shown in the chart below accounted for as much as percent of the total new contracts concluded. Companies in the construction sector still accounted for a large share of new contracts concluded, but nevertheless 7 percentage points less than in The share of new contracts concluded with companies in the trade sector increased the most, by more than 11 percentage points. Factoring services provided in 2009 by client activity Other activities 8% Manufacture of textiles, textile and fur products 1% Manufacture of metals and metal products 2% Land transport 3% Manufacture of foods, beverages, prepared feeds for farm animals and tobacco products 4% Manufacture of fabricated metal products, except machinery and equipment 8% Manufacture of motor vehicles and accessories for motor vehicles 9% Construction 25% Retail trade 17% Wholesale trade 14% Chemical products, man-made fibres, rubber and plastic products, recycling 9%

8 ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA Plans for 2010 Plans for 2010 comprise above all an increase in the market share held by the company, as well as management of subsidiaries and of risks of all types. Key elements of the 2010 plan: EUR 230,000 thousand of new contracts concluded; EUR 1,508 thousand and EUR 1,290 thousand of profit before and after tax respectively; further upgrading of the IT system to ensure accurate and timely reporting. The company s long-term objectives remain the following: to maintain the leading position in the domestic market, to consolidate its position in new markets, and to achieve at least a 15-percent year-on-year growth in turnover and return on equity. Other objectives relate to the organisation of the company itself and comprise: improvement of its risk management policy, internal rules and internal controls, development of an effective IT support at Group level, as well as product development. 1.4 Internal audit department in 2009 The parent company s internal audit department was established in the second half of In 2008, the management bodies adopted an umbrella internal act regulating the department s operations, thus establishing its methodological basis. The internal audit department operates in accordance with this act across all companies members of the Prvi faktor Group. The department has employed one internal auditor till now. In 2009, the department conducted three regular and one extraordinary internal audit reviews in Group companies. Together with the internal audit departments of the parent company s owners, it conducted two extraordinary internal audit reviews in Group companies, and then monitored the implementation of recommendations issued thereupon. The internal audit department reported regularly on its findings to the parent company s management, and periodically on its work to the authorised representatives (general meetings of shareholders) and to the internal audit departments of the parent company s owners. The internal audit department also participated regularly at the meetings of the various bodies of Group companies. Of its available working time, the internal audit department spent 60% conducting (participating in) internal audit reviews, 20% working with an external auditor on the regular auditing of the financial statements of the parent company and of the Prvi faktor Group, including the preparation of the 2008 annual report, and 20% on other, mainly various consulting tasks. The department fulfilled only 75% of its plan for 2009, which, however, is attributable entirely to the larger number of unplanned activities (participation in extraordinary internal audit reviews). 1.5 Information technology in 2009 All information technology-related activities were conducted in accordance with the strategic IT plan. The majority were focused on the implementation of the ERP Navision System in Prvi faktor Belgrade and the implementation of changes in the IT support for accounting, back office and sales functions in all companies members of the Prvi faktor Group. Both main applications (InteliDoc and ERP Navision System) underwent many upgrades and changes due to the continuing changes in the market and improvements in the business processes. A webmail server was implemented at Group level that allows the employees to access their s from anywhere when out of office. Client databases of Group companies were reviewed to prevent duplication of data in and to optimise the central client database in the ERP System.

9 Prvi faktor Ljubljana The main focus in 2009 was on the business continuity project, urgently required by the centralisation at Group level of both main applications and of databases, in order to minimise the risk of IT failure and to manage effectively any other adverse events. Before launching the business continuity project, the IT infrastructure, which represents the basis of safe and effective business processes, was optimised: the number of servers was reduced to four, of which two were replaced with new ones and three were virtualised. Two new firewalls were installed and two servers got a new operational system with a cluster architecture required for hot failover that is for the taking over of any functioning hardware/software from the failed hardware/software. In addition, export of data and of client and account balance interfaces respectively was added to automate data collection for reporting (COGNOS) and central credit portfolio monitoring (CSKP) purposes. The company also carried out everything that was necessary to join to the extranet of its coowner, the NLB bank. The Group thus gained access to the data made available by the NLB bank in its extranet, as well as the possibility to enter directly the data required for reporting (COGNOS). To this end, the company also made a list of all reports (59) required by the external users (NLB, SID, Central Bank, Tax Administration, Agency for Public Legal Records, Pension and Disability Insurance Institute, Health Insurance Institute, Employment Service, SKUPNA and Statistical Office). The company also managed and co-ordinated the work of external providers of maintenance and other services, and reported about or helped with the daily user problems. The company also carried out everything that was necessary for the youngest Group company, PF Sarajevo, to be integrated in the central test and production environment of the Navision System. ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA Prvi faktor Zagreb Within the Navision System, the implementation of the module supporting the back office function was completed. The accounting module was changed in due time to reflect the changed tax rate, as well as the changed requirements regarding tax accounting introduced by the Croatian government. 57 The InteliDoc data model was expanded and the application upgraded accordingly due to the requirements of the local market. To avoid manual data entry errors, the company introduced an interface for the transfer of credit limit request data (the so-called ZZL form) from InteliDoc to the Navision System. Prvi faktor Belgrade All contracts were transferred to and all requirements entered in InteliDoc so that the sales department of PF Belgrade now uses this documentary system in connection with all the tasks required by any transaction (the preparation of offers, contracts, supplements, forms and credit limit requests, but above all the approval of credit limits). All back office employees were trained to use the Navision System in general and the factoring module in particular. To allow them to do this, the following was taken care of: client database in Lotus (InteliDoc) was reviewed and all active client data transferred to the Navision System; clients were assigned new codes and their outstanding, as well as closed balances were adjusted accordingly; outstanding balances of buyers and debtors in the bookkeeping records were adjusted to those in the excel spreadsheets kept by the back office; macros were made to form a unified structure of data that were to be transferred from the various excel files to the Navision System. The company also updated its firewall, antivirus and internet access control systems. It successfully completed the transfer of data from the various excel files to the central ERP database, and the development of IT support required by the country-specific treatment of netting and of charging the exchange rate differences.

10 ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA Prvi faktor Sarajevo PF Sarajevo carried out everything that was necessary for the youngest Group company to start using the Navision System for accounting purposes: client database in InteliDoc was reviewed and transferred to the Navision System, users were trained to use the Navision System, settings of the Navision System were determined, etc Internal control system in 2009 In 2009, certain final steps were undertaken towards business process standardisation across all companies members of the Prvi faktor Group, including standardisation of documentation and controls. As explained under the overview of the information technology sector in 2009, the majority of Group companies already use the same factoring module (factoring transactions are carried out and monitored in accordance with the same processes and using the same documents), while the smallest Group company is lagging slightly behind. All Group companies use the same application (reporting package) for accounting and accounting reporting. They also produce the same risk management reports (used to monitor credit, non-credit and operational risks). Both largest Group companies established a controlling department in This department's main responsibility is the preparation of risk management reports (and regular data entry control). The parent company s controlling department is additionally responsible for the control of such reports prepared by the subsidiaries. All internal acts of the companies members of the Prvi faktor Group were revised and updated, paying particular attention to those governing risk management. If necessary, those of subsidiaries were harmonised with those of the parent company. On the other hand, internal acts governing processes were harmonised based on the software solutions implemented by Group companies. 58 The internal audit department adopted an umbrella internal act based on which it conducts internal audit reviews in all Group companies and business units, makes recommendations based on the findings of such reviews, and systematically monitors implementation of such recommendations. The internal control system in the Prvi faktor Group is occasionally reviewed also by the co-owner s internal audit department (the NLB s central internal audit department). The financial statements of all Group companies are audited by external auditors, while their other specific areas are occasionally reviewed by various external bodies (tax authorities, central bank inspectors, etc.) 1.7 Corporate communications in 2009 The global financial crisis affected dramatically market conditions in 2009, which in turn affected the business policies of the Prvi faktor Group. These focused even more on the integrated approach to clients, as well as on identification of market opportunities and threats. All market activities support the company s business policies: - they enhance its position as the leading factoring company in the Adriatic Region; - they help build long-term partnerships with clients; - they are aimed at consistently providing high-quality services; - they contribute to the Group s positive visibility and reputation; - they ensure owner satisfaction; - they ensure long-term employee development, safety and satisfaction; and - they ensure an alliance with the media. The Prvi faktor Group maintains good relations with all key publics in its daily operations. It endeavours to adapt to the needs of its business partners, to maintain the trust and support of its owners, to create a positive and creative work environment for its employees, and to contribute to the development of the Group as a whole.

11 Communications within the Group We believe that our employees are the ambassadors of the trade mark Prvi faktor, for which reason a lot of attention was focused on them in In order to achieve the objectives, employees must possess expertise, be motivated and work as a team. We help them become such by means of internal communications that are subject to continuous upgrading and deepening, by means of balanced one-way and two-way communications, by means of regular personal and electronic communications, as well as by means of team building, strategic conferences and other social events that enhance creativity and knowledge and experience exchange. We also care about the future of our employees and thus co-finance their additional pension insurance. Communications with the external environment Prvi faktor Group has a highly-competitive range of services, based on which it carefully builds integrated and long-term client relationships. Our imperative is a prompt response to market conditions. In this context, the Group took the following measures in 2009: it strengthened client communication and listened to clients who responded to such communication; it worked with the Slovenian Chambers of Commerce and of Small Business on recognisability of factoring; it promptly informed the key publics of any important event; it produced accurate and relevant reports; it endeavoured to maintain and enhance its reputation with the key publics; and it improved the synergies arising from its working together with other companies members of its owners group. Social responsibility Prvi faktor Group, through its many business units, gets involved in the life of local communities. It is aware of it being an integral part of the social environment, for which it takes care and thus co-creates it by supporting various projects in the areas of sports, education, culture and charity. ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA 59

12 ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA 1.8 Statement of management responsibilities The management approves the separate financial statements for the year ended 31 December 2009, presented on pages 64 to 68 of this annual report, as well as accounting policies used in the preparation of these separate financial statements and notes thereto, presented on pages 69 to 96 of this annual report. STATEMENT OF MANAGEMENT'S RESPONSIBILITIES The management is responsible for the preparation of the annual report so that it gives a true and fair view of the company's financial position and operating results for a business year. The management confirms that proper accounting policies have been applied consistently, and that reasonable and prudent estimates have been made. The management also confirms that the separate financial statements and notes thereto have been prepared on a going concern basis, and in accordance with the legislation in force and International Financial Reporting Standards as adopted by the European Union. The management is also responsible for keeping proper accounting records, for safeguarding the assets of the company, and for taking reasonable steps for the prevention and detection of fraud and other illegalities. Tax authorities may, at any time within five years following the tax assessment year, inspect the company, which may result in additional tax liabilities, late payment interest and fines under the Corporate Income Tax Act, or in other taxes and charges. The management is not aware of any circumstances that could give rise to a material liability in this respect. Ernest Ribič, director Ljubljana, 4 March

13 2 ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA Auditor's report 61

14 ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA 62

15 63 ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA

16 ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA 3 Financial statements 64

17 Statement of financial position Note 31 Dec Dec 2008 ASSETS 134, ,704 NON-CURRENT ASSETS 5,519 4,984 Intangible assets Property, plant and equipment Interests in subsidiaries 5.3 4,357 4,357 Deferred tax assets CURRENT ASSETS 128, ,720 Loans and receivables , ,274 Current tax assets Cash 5.5 1, EQUITY AND LIABILITIES 134, ,704 EQUITY 5.6 7,171 10,005 Called-up capital 3,168 3,168 Equity premium 1,890 1,890 Other reserves Retained earnings 2,026 4,860 NON-CURRENT LIABILITIES Provisions ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA SHORT-TERM LIABILITIES 126, ,612 Short-term borrowings , ,177 Trade and other payables 5.9 6,047 1,435 The notes on pages 69 to 96 are an integral part of these financial statements. 65 The financial statements on pages 64 to 68 were confirmed and signed by the company s director on 4 March 2010 (see Statement of Management s responsibilities).

18 ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA Statement of comprehensive income Note Interest and similar income ,400 11,904 Interest and similar expenses ,489-7,837 Net interest 4,911 4,067 Dividend income ,836 4,365 Other operating revenues ,411 Costs of services ,138 Labour costs ,577-1,967 Impairment charges , Other operating expenses Foreign exchange gains, net Profit from regular activities 1,952 5,021 Income tax Net profit for the period 1,837 4,748 Other comprehensive income - - Total comprehensive income for the period 1,837 4,748 The notes on pages 69 to 96 are an integral part of these financial statements. The financial statements on pages 64 to 68 were confirmed and signed by the company s director on 4 March 2010 (see Statement of Management s responsibilities). 66

19 Statement of cash flows Note Net profit for the period 1,837 4,748 Adjustments: Amortisation/depreciation Impairment charges 2, Other non-monetary items Interest expense 5,489 7,665 Interest income - 10,400-9,406 Exchange rate differences , Changes in net operating assets Opening less closing loans and receivables 24,153-36,412 Opening less closing other liabilities 4,645-1,197 Interest received 10,297 8,479 Interest paid - 5,489-7,654 Income tax paid - 1, Net cash from operating activities 32,468-36,990 Cash flows from investing activities Cash payments to acquire property, plant and equipment, and intangible assets Net cash from investing activities ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA Cash flows from financing activities Dividends paid to owners 0-1,549 Dividends received 1,836 4,193 Cash proceeds from increase in borrowings 353, ,423 Cash repayments of borrowings - 386, ,842 Net cash from financing activities - 31,197 33, Net cash inflow or outflow for the period Opening balance of cash and cash equivalents Closing balance of cash and cash equivalents 1, The notes on pages 69 to 96 are an integral part of these financial statements. The financial statements on pages 64 to 68 were confirmed and signed by the company s director on 4 March 2010 (see Statement of Management s responsibilities).

20 ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA Statement of changes in equity Called-up capital Equity premium Other reserves Retained earnings Total Balance at 1 January ,168 1, ,661 6,806 Comprehensive income Profit for the year 4,748 4,748 Total comprehensive income 4,748 4,748 Transactions with owners Dividends paid - 1,549-1,549 Total transactions with owners - 1,549-1,549 Balance at 1 January ,168 1, ,860 10,005 Comprehensive income Profit for the year 1,837 1,837 Total comprehensive income 1,837 1,837 Transactions with owners Dividends paid - 4,671-4,671 Total transactions with owners - 4,671-4,671 Balance at 31 December ,168 1, ,026 7,171 The notes on pages 69 to 96 are an integral part of these financial statements. 68 The financial statements on pages 64 to 68 were confirmed and signed by the company s director on 4 March 2010 (see Statement of Management s responsibilities).

21 4 ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA Accounting policies 69

22 ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA 4.1 General information Prvi faktor d.o.o. (the company) is a limited liability company established in Slovenia in accordance with the Slovenian law. It was entered in the register kept by the Ljubljana District Court on 23 March 1994, and commenced operations on 1 September The company s registered office is at Slovenska 17, Ljubljana, Slovenia. The owners of the company are two banks: Nova Ljubljanska banka d.d., Ljubljana (NLB), and SID-Slovenska izvozna in razvojna banka, d.d., Ljubljana (SID). The company s main activities are domestic and export factoring. 4.2 Summary of significant accounting policies Basis of preparation The financial statements for the year ended 31 December 2009 have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the European Union. The policies set out below have been consistently applied to all the years presented. The financial statements have been prepared under the historical cost convention. The company first prepared its financial statements in accordance with IFRS for the year ended 31 December Until 31 December 2006, the company used to prepare its financial statements in accordance with Slovenian Accounting Standards. The date of transition to IFRS, as adopted by the European Union, is 1 January This is also the date of the opening balance sheet. No exemptions were used. 70 Preparation of the financial statements in accordance with IFRS, as adopted by the European Union, requires the use of certain critical accounting estimates. It also requires the management to exercise its judgment when applying the company s accounting policies. The company has prepared these separate financial statements in accordance with IFRS and the Companies Act. The company has also prepared consolidated financial statements in accordance with IFRS for itself and its subsidiaries (the»group«). In the consolidated financial statements, subsidiaries which are those companies in which the company, directly or indirectly, has an interest of more than half of the voting rights or otherwise has power to exercise control over the operations have been fully consolidated. The consolidated financial statements are available at: PRVI FAKTOR d.o.o, Slovenska 17, 1000 Ljubljana, Slovenia. Users of these separate financial statements should read them together with the Group's consolidated financial statements for the year ended 31 December 2009 in order to obtain full information on the financial position, results of operations and cash flows of the Group as a whole. In 2009, the company implemented all new and revised Accounting Standards and Interpretations, as adopted by the European Union. Standards and interpretations effective for annual periods beginning on or after 1 January 2009: IFRS 2: Share-based payment (effective date 1 January 2009). Amendments relating to vesting conditions and cancellations that mainly concern the definition of vesting conditions, the treatment of non-vesting conditions and the treatment of cancellations by other parties. Amendments not affecting the company s financial statements. IFRS 7: Financial instruments: disclosures. Amendments enhancing disclosures about fair value and liquidity risk. Fair values of financial instruments must be disclosed by levels of the fair value hierarchy. IFRS 8: Operating segments (effective date 1 January 2009). The standard, which replaced IFRS 14, requires disclosures by operating segments on the same basis as is used for internal reporting to the entity's chief operating decision maker to make decisions about resources to be

23 allocated to the segment and assess its performance. A standard not affecting the company s operations or disclosures. IAS 1: Presentation of financial statements (effective date 1 January 2009). Amendments requesting presentation of all transactions with non-owners in a single statement of comprehensive income (or else in an income statement and a statement of other comprehensive income). Changes in and reconciliations between the carrying amounts at the beginning and the end of the period for each component of equity and of the statement of comprehensive income must be shown. When applicable, the effects of retrospective application of an accounting policy or restatement of items in the financial statements must be presented in a statement of financial position (balance sheet) as at the beginning of the earliest comparative period. Financial assets and liabilities, classified as financial instruments held for trading under IAS 39 (Financial instruments: recognition and measurement), are classified as current assets and liabilities for the purpose of presentation of financial statements. Amendments not relevant for the company. IAS 16: Property, plant and equipment (effective date 1 January 2009); and consequently IAS 7: Statement of cash flows. Amendments requesting that entities which, in the course of their ordinary activities, routinely sell items of property, plant and equipment that they have held for rental to others, recognise the proceeds from the sale of such assets as revenues and transfer such assets to inventories. Cash receipts from rents and subsequent sales of such assets are cash flows from operating activities. IAS 19: Employee benefits (effective date 1 January 2009). Amendments defining the basis for distinguishing between short-term and long-term benefits, and re-defining the expected return on plan assets, thus eliminating the inconsistency between IAS 19 and IAS 37 (Provisions, contingent liabilities and contingent assets), which does not require recognition of contingent liabilities but only their disclosure. IAS 20: Accounting for government grants and disclosure of government assistance (effective date 1 January 2009). Amendments laying down that the benefit of a government loan at a below-market rate of interest shall be measured as the difference between the initial carrying value of the loan determined in accordance with IAS 39 (Financial instruments: recognition and measurement) and the proceeds received. Amendments not relevant for the company. IAS 23: Borrowing costs (effective date 1 January 2009). Amendments requesting that borrowing costs directly attributable to the acquisition, construction or production of assets under construction or development are capitalised as part of the cost of that asset. They eliminate the immediate recognition of such costs as expenses in the income statement. Amendments concerning also the definition of borrowing costs: these must be measured using the effective interest method as described in IAS 39 (Financial instruments: recognition and measurement). Amendments not relevant for the company. IAS 28: Investments in associates (effective date 1 January 2009); and consequently IAS 32: Financial instruments: presentation and IFRS 7: Financial instruments: disclosures. Amendments requesting that: an investment is tested for impairment as a single asset; any impairment loss so recognised is not allocated to any asset, including goodwill; any reversal of that impairment loss is recognised up to the recoverable amount of such investment. Amendments not relevant for the company. IAS 29: Financial reporting in hyperinflationary economies (effective date 1 January 2009). Amendments requesting that a range of assets and liabilities be measured at fair value and not using the historical cost approach. Amendments not relevant for the company. IAS 31: Interests in joint ventures; and consequently IFRS 7 and IAS 32. Amendments reducing the required disclosures relating to joint ventures accounted for at fair value through profit or loss. Amendments not relevant for the company. IAS 32: Financial instruments: presentation; and IAS 1: Presentation of financial statements (effective date 1 January 2009). Amendments relating to financial instruments and obligations arising on their liquidation. Financial instruments must be classified as equity if they impose on the entity an obligation to deliver to another party a pro rata share of the net assets of the entity on liquidation. Amendments not relevant for the company. IAS 36: Impairment of assets (effective date 1 January 2009). Amendments requesting certain disclosures in the annual report if the fair value less costs to sell is calculated by discounting future cash flows. IAS 38: Intangible assets (effective date 1 January 2009). Amendments explaining that payments for services made in advance shall be recognised as costs only when the entity obtains the right to (access) those services. Amendments deleting also the statement saying that rarely, if ever, will there be persuasive evidence to support an amortisation method at rates below those used under the straight-line method. IAS 39: Financial instruments: recognition and measurement (effective date 1 January 2009). Amendments permitting an entity to reclassify a derivative into or from the fair value through profit or loss category if the derivative no longer qualifies for hedge accounting, explaining also that only instruments that involve a party external to the entity can be designated as hedging instruments, provided the conditions for hedge accounting are met. When fair value hedge accounting is discontinued, the original effective interest rate of the debt instrument designated as hedge item must be revised. Amendments not relevant for the company. IAS 40: Investment property (effective date 1 January 2009); and consequently IAS 16: Property, plant and equipment. Amendments concerning investment property that is being constructed: it shall be treated and presented as investment property in the financial statements. If the entity uses the fair value model, it must be measured at its fair value, provided it is reliably measurable. 71 ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA

24 ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA 72 If it is not, it is measured at cost until either construction is completed or its fair value becomes reliably measurable. IAS 41: Agriculture (effective date 1 January 2009). Amendments relating to fair value calculation based on discounted cash flows and: allowing the use of a market-determined discount rate; and removing the prohibition on taking biological transformation into consideration. Amendments not relevant for the company. IFRIC 15: Agreements for the construction of real estate (effective date 1 January 2009). Interpretation applying to the accounting for revenues and associated expenses by entities that undertake the construction of real estate directly or through subcontractors. Interpretation not relevant for the company. IFRIC 16: Hedges of a net investment in a foreign operation (effective date 1 January 2009). Interpretation applying to an entity hedging its net investments in foreign operations: it qualifies for hedge accounting only if the associated foreign currency risk arises from a difference between the functional (and not presentation) currencies, whereby the hedging instrument can be held by any group entity. Interpretation not relevant for the company. Standards and interpretations effective for annual periods beginning on or after 1 July 2009: IFRS 1 and IAS 27: Cost of an investment in a subsidiary, jointly controlled entity or associate. Amendments (to IFRS 1) allowing first-time adopters to use the carrying amount under previous accounting practice to measure the initial cost of investments in subsidiaries, jointly controlled entities and associates. Amendments (to IAS 27) deleting the definition of the cost method and requesting that an entity recognises a dividend as revenue in the income statement in its separate financial statements. IFRS 5: Non-current assets held for sale and discontinued operations (effective date 1 July 2009 ). Amendments relating to a sale plan involving loss of control of a subsidiary: the entity is required to classify all the assets and liabilities of that subsidiary as held for sale. An entity must make certain disclosures also as regards operations classified as discontinued. Amendments not relevant for the company. IAS 27: Consolidated and separate financial statements. Amendments requesting that all transactions with holders of non-controlling interests are accounted for as equity transactions, without remeasuring goodwill or recognising a gain or loss. In the case of loss of control of a subsidiary, any investment retained shall be remeasured at fair value and a gain or loss so arising recognised in the income statement. IAS 39: Eligible hedged items. Amendments relating to the following particular situations: If an entity designates a purchased option in its entirety as hedging instrument of a one-sided risk, the hedging will not be perfectly effective. Inflation cannot be designated as hedged risk. IFRIC 17: Distribution of non-cash assets to owners. Interpretation applying to measurement of dividends in the form of non-cash assets. An entity shall measure the liability to distribute such dividends at the fair value of assets to be distributed. IFRIC 18: Transfers of assets from customers. Interpretation clarifying the accounting treatment of transfers of assets such as property and plant that an entity receives from customers. Amendments to International Financial Reporting Standards were issued in May 2008 (adopted by the European Union on 23 January 2009) and April 2009 (not yet adopted by the European Union). They relate to presentation, recognition and measurement, as well as the terms used. They do not significantly affect the company s accounting policies. IFRS 9: Financial instruments: classification and measurement. The standard was issued in November 2009 and is replacing IAS 39 in the part relating to classification and measurement of financial assets. Its key requirements are the following: All financial assets shall be classified as either those measured at fair value or those measured at amortised cost. Classification shall be made upon initial recognition, and shall be based on the entity s business model objective. A debt instrument can be measured at amortised cost if the objective is to hold the financial asset to collect the contractual cash flows in the form of payments of principal and interest. Other debt instruments must be measured at fair value through profit or loss. All equity instruments must be measured at fair value. Equity instruments held for trading shall be measured at fair value through profit or loss, while those not held for trading shall be measured at fair value through other comprehensive income, without a subsequent transfer of gains or losses to the income statement. Only dividends shall be recognised in the income statement, as they represent the return on investment. IFRS 9 is applicable starting 1 January 2013, with early adoption permitted

25 4.2.2 Foreign currency translation (i) Functional and presentation currency Items reported in these financial statements are measured using the currency of the primary economic environment in which the company operates (the functional currency). The financial statements are presented in the euro, which has been the company's functional and presentation currency since 1 January (ii) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates ruling on the date of the transaction. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year-end exchange rates are recognised in the income statement. Exchange rate differences arising from the translation of non-monetary items are recognised as part of the fair value gain or loss Intangible assets Intangible assets comprise computer software licences. These assets are capitalised on the basis of costs incurred to acquire and bring to use the specific software. These costs are amortised over the estimated useful life of such software (4 years). Intangible assets are carried at cost, less accumulated amortisation and impairment losses. Amortisation of intangible assets starts upon their availability for use. ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA Property, plant and equipment An item of property, plant and equipment is recognised in the balance sheet at historical cost less accumulated depreciation and impairment. The cost of an item of property, plant and equipment includes expenditure that is directly attributable to its acquisition. 73 Subsequent costs are included in the assets' carrying amount or recognized as a separate asset, as appropriate, but only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. All other repair and maintenance costs are charged to the statement of comprehensive income during the financial period in which they are incurred. Property, plant and equipment are depreciated using the straight line method. Annual depreciation rates based on the useful life of assets are as follows: Leasehold improvements 12,24% to 20.00% Computer equipment 25% Motor vehicles 20% Other equipment 20% Depreciation of property, plant and equipment starts upon their availability for use. The residual value of an asset is the estimated amount that the company would currently obtain from disposal of the asset less the estimated costs of disposal, if the asset was already of the age and in the condition expected at the end of its useful life. The residual value of an asset is nil if the company expects to use the asset until the end of its physical life. The assets residual values and useful lives are reviewed and adjusted, if appropriate, at each balance sheet date. An assets carrying amount is written down immediately to its recoverable amount if the asset s carrying amount is greater than its estimated recoverable amount.

26 ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA Gains and losses on disposals are determined by comparing proceeds with carrying amounts. They are recognised in the statement of comprehensive income Shares and interests in subsidiaries Shares and interests in subsidiaries are accounted for using the cost method. Under the cost method, the investor recognises investment income when the right to receive payment is established and only to the extent that the investor receives distributions from accumulated profits of the investee arising after the date of acquisition. Distributions received in excess of such profits are regarded as a recovery of investment and are recognized as a reduction of the cost of the investment. The investor also applies the requirements of IAS 36 to determine whether it is necessary to recognise any additional impairment loss Loans and receivables Loans and receivables are initially recognised at cost, increased by any directly attributable transaction costs. Subsequently they shall be measured at amortised cost using the effective interest method. Loans and receivables are included in current assets, except for maturities greater than 12 months after the end of the reporting period. These are classified as non current assets. Advance payments are shown in the statement of financial position under items to which they relate: advance payments for equipment are shown under equipment, advance payments for intangible assets are shown under intangible assets, while advance payments for inventories are shown under inventories. Receivables arising from recourse and non-recourse factoring are included in the Statement of financial position at their net value, i.e., at the amount of cash provided in exchange for accounts receivable purchased. 74 Allowances shall be established or impairments losses recognised if a company assesses that certain receivables cannot be collected in accordance with the contractual provisions and therefore expects losses to occur. Evidence must exist on impairment, such as: significant financial difficulties of the debtor, a breach of contractual obligations by the debtor, concessions granted due to financial difficulties of the debtor, probable or existing bankruptcy or financial reorganisation of the debtor, unfavourable changes in the debt repayment pattern by the debtor, unfavourable changes in economic conditions that affect debt repayment by the debtor. The allowance or impairment amount shall be estimated for individually significant loans and receivables using an item-by-item approach. Using an item-by-item approach, the company may write off loans and receivables with a fair or collectable value that is unquestionably zero. Factoring receivables Factoring receivables are receivables arising from the company s core business. Their payments are fixed or determinable, and they are not actively traded. The company finances receivables of its clients either with the right to return the receivable back if not paid (factoring receivables with recourse) or without such right (factoring receivables without recourse). Subsequently they shall be measured at amortised cost using the effective interest method, less any impairment allowances. Factoring receivables are derecognised when the rights to receive cash flows from the financial assets have expired or when the company has transferred substantially all the risks and rewards of ownership. Financial liabilities relating to factoring receivables are derecognised when they are extinguished, i.e., when the obligation is discharged, cancelled or expires Cash and cash equivalents Cash and cash equivalents comprise cash on hand, deposits and cash in transit. Cash on hand comprises banknotes, coins and cheques received.

27 Deposits comprise deposits with banks or other financial institutions that can be used for payment purposes, i.e., readily available cash. Cash in transit is cash being transferred from a cash register to a relevant account with a bank or another financial institution, but will not be credited to that account on the same day. Cash comprises also cash equivalents that are readily convertible to known amounts of cash with an insignificant risk of changes in value Borrowings Borrowings are originally recognised at fair value, net of transaction costs incurred. Subsequently they shall be measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the statement of comprehensive income over the period of borrowings using the effective interest method. Borrowings are classified as current liabilities, unless the company has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date Trade and other payables Trade and other payables are initially recognised at fair value. Subsequently they shall be measured at amortised cost using the effective interest method. Factoring payables Factoring payables represent amounts owed to the assignors of factored receivables, net of cash advances paid. These payables usually represent 10% to 20% of the assigned amounts and are used for settlement of interest and fees charged to the assignors, when due. On collection of the underlying factored receivable from the original debtor, the remaining amount of these payables is payable to the assignor. ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA Provisions 75 The company offers its employees all the mandatory benefits: long service and retirement benefits. Valuation of provisions for these obligations is carried out by independent qualified actuaries. The actuarial assumptions they use are the following: salary increase based on inflation, promotion and seniority; a discount rate of 5,85% per annum; and the number of employees eligible to claim benefits. Under Slovenia's law, employees retire when they have 35 to 40 years of service. On retirement, they are entitled to a retirement benefit payable in a lump sum. Employees are also entitled to a long service benefit for every ten years of service with the Group. These employee benefits are included in the statement of comprehensive income at the present value of future cash outflows, including any attributable gains or losses. Social security payments, which are calculated together with salaries, are charged to the statement of comprehensive income when incurred Equity Total equity consists of called-up capital, share premium, other reserves and retained earnings. Called-up capital is carried at nominal value. Other reserves must be used for the purposes laid down in the Companies Act. They comprise legal and other reserves.

28 ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA Taxation Tax expenses of the company in the accounting period comprise current and deferred tax. Current tax is calculated in accordance with the applicable legislation in the country where the company operates and generates taxable income. The company accounts for deferred tax by applying the balance sheet liability method, which focuses on temporary differences. Temporary differences are differences between the tax base of an asset or liability and its carrying amount in the balance sheet. In the company, temporary differences arise mainly on valuation of receivables. Deferred tax assets are recognised when it is probable that taxable profit will be available against which the deductible temporary differences can be utilised. The carrying amounts of deferred tax assets and the amounts of taxable profit against which the deductible differences can be utilised are reviewed at each statement of financial position date. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period in which the asset is realised or the liability is settled Recognition of revenues and expenses (i) Interest income Interest income is recognised on a time-proportion basis using the effective interest method. The effective interest method is a method of calculating the amortised cost of a financial asset or financial liability and of allocating interest income or interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash flows through the expected life of the financial asset or financial liability. 76 When a receivable is impaired, the company reduces its carrying amount to its recoverable amount, which is the estimated future cash flows discounted at the financial asset s original effective interest rate. Interest income on impaired loans and receivables is recognised using the original effective interest rate. Interest income mainly includes interest on amounts paid to the assignors of factoring receivables, as well as interest on short-term loans and discounted bills of exchange. Fees are usually recognised in the statement of comprehensive income when the relevant service has been provided. Fees mainly comprise those relating to the core factoring business. Fees included in the calculation of the effective interest rate of a financial asset or a financial liability are recognised as interest income or interest expense. (ii) Interest expense Interest expense mainly relates to borrowings and is recognised in the income statement as it accrues, taking into account the effective interest method Dividend income Dividend income (shares of subsidiaries profits) are recognised in the income statement when the right to receive payment is established Financial guarantee contracts Financial guarantee contracts are contracts that require the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt instrument. Such financial guarantees are issued to others on behalf of clients to secure their loans, overdrafts and other facilities.

29 Financial guarantees are initially recognised in the financial statements at fair value when issued. Subsequently, the company`s liabilities under financial guarantee contracts are measured at the higher of the following two values: the initial measurement, less amortisation of the fee income recognised on the straight-line basis over the financial guarantee term, and the best estimate of the expenditure required to settle the present obligation at the balance sheet date. Such estimate is determined based on experience of similar transactions, supplemented by the judgement of the management. Any increase in the liabilities relating to financial guarantee contracts is taken to the statement of comprehensive income under other operating expenses Critical accounting estimates and judgements The company reviews its portfolio of loans and receivables to assess impairment at least on a quarterly basis. The company first makes judgments in determining whether there is observable data indicating that there is a measurable decrease in the estimated future cash flows from a portfolio of loans and receivables, and only then determines whether a decrease can be identified with individual assets in that portfolio. This evidence may include observable data indicating that there has been an adverse change in the payment status of borrowers in the portfolio, or national or local economic conditions that correlate with defaults on the assets in the portfolio. The management uses estimates based on historical loss experience for assets with credit risk characteristics and objective evidence of impairment similar to those in the portfolio for which the future cash flows are being estimated. The methodology and assumptions used for estimating both the amount and timing of future cash flows are reviewed regularly to reduce any differences between loss estimates and actual loss experience Spremembe predstavitve postavk, razkritih v izkazu denarnih tokov ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA Izkaz denarnih tokov za obdobje Before the amendment Net profit for the period 4,748 Adjustments Amortisation/depreciation 137 Revaluation operating expenses 646 Income tax 273 Other non-monetary items 94 Interest expense 7,665 Interest income -9,406 4,156 Changes in net operating assets Opening less closing loans and receivables -36,302 Opening less closing other receivables -110 Opening less closing other liabilities -1,197 Income tax -206 Net cash from operating activities -33,659 Cash flows from investing activities Cash payments to acquire property, plant and equipment, and intangible assets -192 Cash receipts from disposal of property, plant and equipment 0 Net cash from investing activities -192

30 ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA Cash flows from financing activities Paid-in capital 0 Dividends paid -1,549 Dividends received 4,193 Cash proceeds from increase in borrowings 250,423 Cash repayments of borrowings -219,842 Interest paid -7,654 Interest received 8,479 Net cash from financing activities 34,049 Net cash inflow or outflow for the period 198 Opening balance of cash and cash equivalents 89 Closing balance of cash and cash equivalents 287 After the amendment 2008 Net profit for the period 4,748 Adjustments Amortisation/depreciation 137 Revaluation operating expenses 646 Other non-monetary items 411 Interest expense 7,665 Interest income -9,406 Exchanges rate differences Changes in net operating assets Opening less closing loans and receivables -36,412 Opening less closing other liabilities -1,197 Interest received 8,479 Interest paid -7,654 Income tax -206 Net cash from operating activities -36,990 Cash flows from investing activities Cash payments to acquire property, plant and equipment, and intangible assets -192 Net cash from investing activities -192 Cash flows from financing activities Dividends paid -1,549 Dividends received 4,193 Cash proceeds from increase in borrowings 250,423 Cash repayments of borrowings -219,842 Net cash from financing activities 33,225 Net cash inflow or outflow for the period 198 Opening balance of cash and cash equivalents 89 Closing balance of cash and cash equivalents 287 Amendments to the statement of cash flows for the year 2008 were made due to different presentation and classification of items.

31 4.3 Financial risk management The company s activities expose it to a variety of financial risks including currency risk, interest rate risk, credit risk and liquidity risk. Credit risk To manage credit risk, the company has internal instructions in place for approving ratings, credit limits and transactions. These instructions include all the necessary information, criteria and a model for classifying clients and investments. Sales department has certain powers with regard to the approval of credit limits and investments, but most are nevertheless approved by the credit committee. Client ratings depend on their financial standing, business performance, relationship with the company to date, and the ability to provide a sufficient cash flow to meet future obligations. Clients rated A are financially very strong and the company expects no problems with their meeting of obligations. Clients rated B are also financially strong but are more likely to be affected by adverse market developments. Clients rated C imply a higher degree of risk, as they usually meet their obligations with a delay of up to 180 days. Clients rated D are illiquid and insolvent. Client credit limits are established on the basis of their creditworthiness, feasibility of the transaction, as well as other elements which might influence their capacity to meet their obligations. The company reduces credit risk by accepting different types of collateral. Loans and receivables are usually secured by normal collateral instruments (bills of exchange) or mortgages, or are insured with the SID-PKZ insurance company or a correspondent foreign factoring company. It is of key importance that the majority of factoring is with recourse, which means that in the case of a buyer s default, the company can still recover from the client, i.e., the assignor of the relevant account receivable. Credit risk is thus reduced significantly. ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA Maximum exposure to credit risk associated with loans and receivables Loans and receivables 127, ,274 Cash and cash equivalents 1, Financial guarantee contracts 1,764 1,240 Financial guarantees issued for group companies 195, ,801 Total 325, , The above table represents the worst-case scenario of the company s credit risk exposure as at 31 December 2009 and 2008, without taking account of collateral received. The exposure was calculated using the carrying amounts in case of balance sheet items and the nominal values in case of off-balance sheet items. None of the financial guarantees (including those issued for Group companies) was past due. Loans and receivables 31 Dec Dec 2008 Current, not impaired 99, ,436 Overdue, not impaired 10,380 15,263 Overdue, impaired 20,897 2,851 Allowances for impairment -3,889-1,276 Total 127, ,274 Current, not impaired loans and receivables by debtor s rating 31 Dec 2009 Amount Share of total Credit rating A 67, % Credit rating B 24, % Credit rating C 7, % Credit rating D % Total 99, %

32 ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA 31 Dec 2008 Amount Share of total Credit rating A 99, % Credit rating B 34, % Credit rating C % Credit rating D % Total 134, % Loans and receivables overdue (not impaired and impaired) 31 Dec Dec 2008 Overdue, not impaired Overdue, impaired Overdue, not impaired Overdue, impaired Current 7,932 1,903 Overdue up to 1 month 5,303 1,198 6,300 0 Overdue up to 3 months 1, , Overdue up to 1 year 3,354 9,353 2, Overdue over 1 year 0 1, Total 10,380 20,897 15,263 2,851 Overdue but not impaired loans and receivables of EUR 10,380 thousand (2008: EUR 15,263 thousand) were insured with the SID-PKZ and other insurance companies or foreign factoring companies in the amount of EUR 3,239 thousand (2008: EUR 3,139 thousand). For overdue and impaired loans and receivables of EUR 20,897 thousand (2008: EUR 2,851 thousand), the company made allowances of EUR 3,889 thousand (2008: EUR 1,276 thousand). Overdue and impaired loans and receivables were secured by mortgages assessed at EUR 5,077 thousand (2008: EUR 836 thousand) and a bank guarantee of EUR 950 thousand, and were insured with the SID-PKZ and other insurance companies or foreign factoring companies in the amount of EUR 2,058 thousand (2008: EUR 0 thousand). 80 Loans and receivables are assessed individually and impaired individually, if necessary. Bank deposits are also assessed individually. Those with A- and B-rated banks are not impaired.. As at year-end 2009, the share of impaired loans and receivables increased compared to a year ago. This is partly explainable by market developments and partly by the new, more stringent policy of impairment allowances, which requires that impairment allowances are made immediately when there is objective evidence that a loan or receivable might not be paid in full. The share of overdue loans and receivables also increased but the share of overdue but not impaired items decreased significantly on the account of an increase in impaired items. In view of the above, impairment allowances for loans and receivables increased significantly. Loans and receivables by debtor s rating 31 December 2009 Total amount Impairment amount Share of total amount Share of impairment amount Bonitetna ocena A 68, % 0.00% Bonitetna ocena B 32, % 0.00% Bonitetna ocena C 24,755 1, % 46.21% Bonitetna ocena D 5,160 2, % 53.79% Skupaj 131,010 3, % % 31 December 2008 Total amount Impairment amount Share of total amount Share of impairment amount Credit rating A 100, % 0.86% Credit rating B 44, % 2.43% Credit rating C 6, % 65.99% Credit rating D % 30.72% Total 152,550 1, % %

33 In 2009, the quality of portfolio worsened somewhat: the share of loans and receivables owed by C- and D-rated debtors increased and the share of loans and receivables owed by A- and B-rated debtors decreased. This is explainable by the general economic conditions, as well as by the new, more stringent method used for making allowances for receivables. Performing loans and receivables are rated A and not impaired. Concentration of risks associated with financial assets and of credit risk exposure The table below shows the majority of the company s credit risk exposure (at carrying amounts) by geographical segments. Counterparties were assigned to geographical segments based on the place of their registered office. Slovenia SE Europe Other Total Loans 10,371 55, ,563 Trade and other receivables 54,691 4,928 1,939 61, December ,062 60,120 1, , December ,944 76,345 2, ,274 By industry, the company s credit risk exposure is concentrated in the trade and construction industries. As at year-end 2009, the company had renegotiated loans and receivables of EUR 14,987 thousand (31 December 2008: EUR 3,675 thousand). After restructuring, an overdue loan or receivable is treated in the same manner as current loans and receivables, and managed together with similar loans and receivables. Only those loans and receivables are restructured for which the selected indicators and criteria used by the management indicate that their debtors will continue paying. The majority of restructured loans and receivables are impaired. ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA The company does not have repossessed collateral. Liquidity risk Liquidity risk management implies maintaining sufficient cash and working capital, and being able to secure funding through adequate revolving financial sources. The company s placements are short-term, which significantly decreases liquidity risk. The company also uses shortterm financial sources to secure adequate liquidity. The amounts disclosed in the table are the contractual undiscounted cash flows: December 2009 Over 5 Total years Up to 1 month 1 to 3 months 3 to 12 months 1 to 5 years FINANCIAL ASSETS 39,182 73,276 13,577 2, ,378 Loans and receivables 37,925 73,276 13,577 2, ,121 Cash 1, ,257 FINANCIAL LIABILITIES 1,108 35,755 93, ,912 Short-term borrowings ,484 92, ,865 Trade and other payables 576 5, ,047 Financial guarantee contracts 1, ,764 Assets less liabilities 38,074 37,521-79,472 2, ,534

34 ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA 31 December 2008 Up to 1 month 1 to 3 months 3 to 12 months 1 to 5 years Over 5 Total years FINANCIAL ASSETS 61,465 58,859 29,898 1, ,561 Loans and 61,178 58,859 29,898 1, ,274 receivables Cash FINANCIAL LIABILITIES 74, , ,448 Short-term 71, , ,773 borrowings Trade and other payables 1, ,435 Financial guarantee contracts ,240 Assets less liabilities -12,678 58,008-45,556 1,339-1,113 Currency risk The company is to some extent exposed to currency risk. The company does not actively manage this risk, but does link to EUR any advance payments to the assignors in order to neutralise the effect that any exchange rate movements could have on its EUR-denominated borrowings. Balance sheet by currencies 31 December 2009 EUR USD GBP Other currencies Total 82 FINANCIAL ASSETS 128, ,378 Loans and receivables 127, ,121 Cash 1, , FINANCIAL LIABILITIES 126, ,724 Short-term borrowings 120, ,677 Trade and other payables 6, ,047 Assets less liabilities 1, , December 2008 EUR USD GBP Other currencies Total FINANCIAL ASSETS 151, ,561 Loans and receivables 151, ,274 Cash FINANCIAL LIABILITIES 146, ,612 Short-term borrowings 145, ,177 Trade and other payables 1, ,435 Assets less liabilities 4, ,949 Interest rate risk The company s revenues and operating cash flows are affected by changes in market interest rates. However, as the majority of its assets and liabilities are short-term, the company assesses this risk as insignificant. The tables below show the company s exposure to interest rate risk. Assets and liabilities were classified based on the earlier of the following dates: payment date or interest rate adjustment term

35 31 December 2008 Total Non-interest bearing Total interest bearing Up to 1 month 1 to 3 months 3 to 12 months 1 to 5 years Over 5 years FINANCIAL 151,561 3, ,473 80,709 67, ASSETS Loans and 151,274 2, ,473 80,709 67, receivables Cash FINANCIAL LIABI- LITIES Short-term borrowings Trade and other payables Assets less liabilities 31 December ,612 1, , ,957 21, , , ,957 21, ,435 1, ,949 1,328 3,621-42,248 45, Total Non-interest bearing Total interest bearing Up to 1 month 1 to 3 months 3 to 12 months 1 to 5 years Over 5 years FINANCIAL 128,378 1, , ,188 7, ASSETS Loans and 127,121 1, , ,931 7, receivables Cash 1,257-1,257 1, ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA FINANCIAL LIABILITIES Short-term borrowings Trade and other payables 126,844 6, , ,000 83, , , ,000 83, ,167 6, Assets less liabilities 1,534-4,712 6, ,188-29,697-83, Fair value of financial assets and liabilities The management estimates that there is no significant difference between the carrying amounts and fair values of the company s financial assets and financial liabilities. Sensitivity analysis Sensitivity analysis was prepared assuming a change in market interest rates of 100 basis points (1% p.a.), which the management at that time assessed as reasonable. The effect on net interest income in the first year after such change was calculated. Had market interest rates increased by 100 basic points, the company s net interest income in 2009 would have increased by EUR 177,000 (2008: EUR 358,000). The change would therefore result in higher revenues (included in the income statement). Had market interest rates decreased by 100 basic points, the company s net interest income in 2009 would have decreased by EUR 177,000 (2008: EUR 358,000). The company is not significantly exposed to currency risk as the majority of its transactions are in EUR. Company in the global financial crisis The current global financial and economic crises, which started due to the marked decrease in liquidity worldwide in mid-2007 (often called credit crunch), has amongst its effects also a

36 ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA reduced loan volume in the capital markets, a reduced liquidity of the banking sector and the whole economies, higher inter-bank rates, and very high volatility in stock and currency markets. Instability in the global financial markets brought about also bankruptcy of certain banks and other corporations, and consequently rehabilitation of the banking sector in USA, Western Europe, Russia and some other countries. Assessing the whole range of effects of the current global and financial crisis is difficult, the same as to protect a business against such effects. The management is continuously monitoring conditions in the market. Different scenarios and results of possible effects of the financial crisis on the economy in the region, where the company operates, have been made. The future development of the crisis is very unpredictable; therefore it is hard to estimate the effects it might have on the company s position. However, the management is of opinion, that it has taken all the measures necessary to secure stability and future development of the company under current circumstances. Loan volume in the inter-bank markets decreased significantly after August This could negatively affect the company s capacity to raise new loans or refinance the existing loans under terms and conditions that would be comparable to those under current contracts. The financial and economic crisis could also affect the financial position of the company s debtors, i.e., their capacity to serve debts. This in turn could affect the company s expected cash flows, as well as the estimated allowances. Based on available information, the management, in assessing allowances, correctly considered the changed circumstances affecting the expected cash flows. 84

37 5 Notes to the financial statements ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA 85

38 ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA 5.1 Intangible assets Intangible assets in 2009: Software Assets being acquired Total COST 1 January Additions Other movements December ACCUMULATED AMORTISATION 1 January Amortisation December NET CARRYING AMOUNT 1 January December Intangible assets in 2008: Software Assets being acquired Total 86 COST 1 January Additions Other movements Disposals and eliminations December ACCUMULATED AMORTISATION 1 January Amortisation Disposals and eliminations December NET CARRYING AMOUNT 1 January December

39 5.2 Property, plant and equipment Property, plant and equipment in 2009: Computer equipment, motor vehicles and other equipment Leasehold improvements Property, plant Total and equipment being acquired COST 1 January Additions Other movements Disposals December ACCUMULATED DEPRECIATION 1 January Depreciation Disposals December NET CARRYING AMOUNT 1 January December Property, plant and equipment in 2008: Computer equipment, motor vehicles and other equipment Leasehold improvements Property, plant and Total equipment being acquired COST 1 January Additions Other movements Disposals December ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA ACCUMULATED DEPRECIATION 1 January Depreciation Disposals December NET CARRYING AMOUNT 1 January December Interests in subsidiaries Interests in subsidiaries January 4,357 4,357 Increase in capital of subsidiaries December 4,357 4,357 Information on subsidiaries (PF Zagreb, PF Belgrade, PF Sarajevo and PF Skopje):

40 ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA Information on subsidiaries PF Zagreb PF Belgrade PF Sarajevo PF Skopje Total Interests in subsidiaries 2,651 1, ,357 Parent company s share (%) Capital of subsidiary 5,534 2, ,420 Assets of subsidiary 167,478 94,332 10, ,458 Liabilities of subsidiary 161,944 91,996 10, ,038 Net profit for , ,173 The company regularly, in particular at the end of accounting periods, tests its investments in subsidiaries for impairment. The results of the test carried out as at 31 December 2009 showed that there was no need for impairment of the company s investments in subsidiaries: all the subsidiaries except for PF Sarajevo made a profit in 2009, and there were also no events after the balance sheet date that would require impairment. As shown in the table, capital of PF Sarajevo as at year-end 2009 exceeded the investment of PF Ljubljana in this company. 5.4 Loans and receivables Loans 65,563 72,318 Trade and other receivables 61,558 78,956 Total 127, , Loans Loans 88 Long-term loans to others Total long-term loans Skupaj dolgoročna posojila Short-term loans to group companies 55,246 58,806 Short-term loans to buyers domestic factoring 12,252 12,662 Short-term loans to buyers export factoring Other loans 273 1,031 Impairment allowances - 2, Total short-term loans 65,563 72,045 Total loans 65,563 72,318 Short-term loans comprise, in addition to loans to group companies, also loans to buyers associated with factoring. They were remunerated at rates from 6.5% to 9.9% p.a. (in 2009) and from 5.8% to 9.9% (in 2008). Short-term loans to group companies Subsidiary PF Belgrade 54,253 54,343 PF Sarajevo 993 4,463 Total 55,246 58,806 Movements in impairment allowances 1 January Increases 1, Collected Written off Exchange rate differences December 2,

41 5.4.2 Trade and other receivables Trade and other receivables Factoring receivables 61,454 78,842 Other receivables due from Group companies Other receivables Total 61,558 78,956 Factoring receivables Receivables due from Group companies 0 1,712 Domestic factoring 55,675 57,446 Export factoring 7,263 19,482 Import factoring Other receivables Impairment allowances - 1, Total 61,454 78,842 A portion of short-term receivables from domestic and import factoring is insured with SID-PKZ. The insurance company would, in the case of a debtor s default, cover on average 85 percent of the defaulted receivable. The majority of receivables from export factoring is also insured with SID-PKZ, or correspondent foreign factoring companies (the latter would cover 100 percent of the defaulted receivable). Factoring receivables were remunerated at rates from 5.0% to 10.5% p.a. (2009) and from 5.7% to 9.9% p.a. (2008). ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA Movements in impairment allowances for receivables 1 January Increases 1, Collected Written off December 1, The company makes impairment allowances in accordance with its applicable internal act. This act is compliant with the minimum standards in risk management used by the bank its owner. 5.5 Cash and cash equivalents Deposits in local currency 1, Deposits in foreign currency 0 1 Total 1, Cash items are included in the cash flow statement. 5.6 Equity Movements in equity items are shown in section 3, Statement of changes in equity. Other information is disclosed under section 1.1, Company profile. Equity premium comprises payments exceeding the nominal value of founding shares (calledup capital) and amounts arising from the reversal of the general equity revaluation adjustment. In accordance with the law, equity premium may be used to settle losses or increase called-up capital. Other reserves comprise retained net profit from previous periods earmarked for specific purposes, primarily to settle potential future losses. They are classified into legal reserves and other reserves. Other reserves can be used for the purposes defined in Slovene Corporate Act.

42 ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA Other reserves had the following structure: Legal reserves Other reserves Total The table below shows the accumulated profit: Accumulated profit/loss Retained earnings 4,860 1,661 Payment of dividends - 4,671-1,549 Net profit/loss for the period 1,837 4,748 Accumulated profit or loss 2,026 4,860 As at 31 December 2009, the company s accumulated profit stood at EUR 2,026 thousand (31 December 2008: EUR 4,860 thousand). 5.7 Equity management In equity management, the company applies a broader concept of equity than the balance sheet equity in order to safeguard its ability to continue as a going concern and to secure return on equity. Equity must have an optimal structure to reduce the cost of equity. In order to maintain or adjust its equity structure, the company may adjust dividends paid to the owners, buy back equity from the owners, increase called-up capital or sell assets to reduce debt. 90 The company must meet the equity requirements set out in the Companies Act. In 2009, the company stuck to its internal policy, which requires that equity represents at minimum 3 percent of its total financial sources. To ensure capital adequacy, its owners might increase called-up capital if necessary. Equity finance 31 Dec Dec 2008 Assets 134, ,704 Capital and liabilities 134, ,704 Equity 7,171 10,005 Equity finance (%) 5.35% 6.38% 5.8 Financial liabilities Short-term borrowings from banks-owners 74,804 68,229 Short-term borrowings from other banks 45,873 76,948 Total 120, ,177 Short-term borrowings from banks-owners Owner NLB bank 29,988 53,682 SID Bank 44,816 14,547 Total 74,804 68,229

43 Short-term borrowings from other banks Short-term borrowings from domestic banks 38,873 64,948 Short-term borrowings from foreign banks 7,000 12,000 Total 45,873 76,948 All financial liabilities are short-term. For more information on borrowings, see note 5.21, Related party transactions. Borrowings were remunerated at rates from 2.72% to 5.60% p.a. (in 2009) and from 3.85% to 8.85% p.a. (in 2008). For some of them, the company submitted letters of comfort issued by NLB and SID. 5.9 Trade and other payables Trade and other payables Factoring payables 1,030 1,016 Other short-term operating liabilities 5, Total 6,047 1, Provisions ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA Provisions for retirement and similar benefits stood at EUR 120 thousand as at year-end 2009 (31 December 2008: EUR 87 thousand) Contingencies Financial guarantee contracts 1,764 1,240 Financial guarantees issued for group companies 195, ,801 Total 196, , Financial guarantee contracts relate to guarantees issued to foreign factors, and are mainly associated with import factoring. Guarantees issued for Group companies relate to loans granted to subsidiaries by domestic and foreign banks Interest and similar income Domestic factoring 5,018 5,941 Export factoring 1,052 1,300 Import factoring Intra-group sales 3,698 4,340 Other services Total 10,400 11,904 An amount of EUR 1,248 thousand was recognised as interest income from impaired loans and receivables (2008: EUR 202 thousand).

44 ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA 5.13 Interest and similar expenses Interest paid to Group companies 3,019 3,377 Interest paid to banks 2,470 4,460 TOTAL 5,489 7, Other operating revenues Intra-group sales Other revenues Total 999 1,411 Subsidiaries from the Prvi faktor Group pay the parent company, their owner, dividends as its share of their profit, as decided by their general meetings of shareholders or the parent s owners Dividend income Dividends received from PF Zagreb 1, Dividends received from PF Belgrade 0 3,435 Total 1,836 4,365 Odvisne družbe iz Skupine Prvi faktor izplačujejo lastniku, matični družbi Skupine, deleže iz naslova dobička (t. i. dividende) skladno s sklepi na skupščinah teh družb oz. skladno z usmeritvijo lastnikov družbe Costs of services Rentals Rentals paid to Group companies 0 4 Insurance premiums paid to a related party Insurance premiums paid to foreign factors Accounting, legal and other professional services Other services provided by related parties 0 17 Total 714 1,138 In 2009, auditing costs were EUR 24 thousand (2008: EUR 24 thousand). Future minimum lease payments were EUR 156 thousand within a period later than one and not later than five years Labour costs Wages 1,228 1,544 Pension contributions Social contributions Other contributions and payroll tax 0 51 Other labour costs Total 1,577 1,967 Labour costs decreased in 2009 due to certain specific circumstances (less employees seconded to other Group companies to perform certain tasks) and general circumstances (cost rationalisation in view of the business conditions). Total remuneration paid to the company director was EUR 129 thousand (2008: EUR 151 thousand).

45 5.18 Impairment charges Impairment allowances 3,655 1,168 Reversal of impairments Total 2, Other operating expenses Costs of payment services and bank fees Costs of material used Amortisation/depreciation Equipment maintenance costs Costs of fairs, advertising, entertainment and sponsorships Reimbursement of work-related costs to employees Insurance premiums Commissions Other operating expenses Total Income tax ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA Current tax Deferred taxes Profit before tax 1,952 5,021 Income tax (at rates applicable in relevant countries) 410 1,096 Revenues decreasing tax basis Expenses not deductible for tax purposes Expenses deductible for tax purposes Previously used tax deductions increasing tax basis Tax deductions Tax charge Revenues decreasing tax basis comprise mainly dividends received. Expenses not deductible for tax purposes comprise entertainment costs, late interest and other expenses. Corporate income tax is calculated based on revenues and expenses shown in the income statement, taking account of tax deductions and tax additions in accordance with applicable law. Tax rate applicable under Slovenian law was 22% in 2008 and 21% in The company was last subject to tax inspection in Tax authorities may, at any time within five years following the tax assessment year, inspect the company, which may result in additional tax liabilities and fines. The management is not aware of any circumstances that could give rise to a material liability in this respect.

46 ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA 94 Movements in deferred tax assets Movements in deferred tax assets in Jan 2009 Charged to statement of comprehensive income Credited to statement of comprehensive income 31 Dec 2009 Allowances for receivables Provisions for retirement and similar benefits Total deferred tax assets Movements in deferred tax assets in Jan 2008 Charged to statement of comprehensive income Credited to statement of comprehensive income 31 Dec 2008 Allowances for receivables Provisions for retirement and similar benefits Total deferred tax assets Related party transactions Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions. The company has shares and interests in subsidiaries (members of the Prvi faktor Group), as explained in section 1.1, Company profile. The company is owned by Nova Ljubljanska banka (which holds a 50-% share in it) and SID-Slovenska izvozna in razvojna banka (which holds a 50-% share in it), as explained in section 1.1, Company profile. Parent-subsidiary relationships and relationships with the owners are considered relationships with related parties Related party transactions Prvi faktor, as parent company, provides, under various contracts, the following services to its subsidiaries business and legal consulting, agency services in relation to the accounts receivable insurance with and collection by SID- PKZ, credit rating of clients and their debtors, financial consulting, accountancy consulting, and other consulting. Interest income from intra-group sales (note 5.12) PF Belgrade 3,174 3,104 PF Zagreb PF Sarajevo Total 3,698 4,021 DOther income from intra-group sales (note 5.14) PF Zagreb PF Belgrade PF Sarajevo Total

47 Dividends from subsidiaries (note 5.15) PF Zagreb 1, PF Belgrade 0 3,435 Total 1,836 4,365 Short-term loans to subsidiaries (note 5.4.) Subsidiary PF Belgrade 54,253 54,343 PF Sarajevo 993 4,463 Total 55,246 58,806 Factoring receivables from subsidiaries (note 5.4) PF Zagreb 0 1,651 Total 0 1,651 Trade and other receivables from subsidiaries (note 5.4) (v tisočih EUR) PF Zagreb PF Sarajevo 29 0 Total ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA Relationships with the owners and members of their groups Družba PF Ljubljana je v lasti dveh družb oz. bank: NLB in SID banke. Transactions with NLB mainly comprise loans raised from and payment services provided by the bank. Transactions with SID comprise loans raised by the company for itself and its subsidiaries from the bank. 95 Interest income (note 5.12) NLB bank 6 1 LHB NLB Interfinanz 20 0 Total Interest expense (note 5.13) NLB Group 2,183 2,613 SID Total 3,019 3,377 Other operating revenues (note 5.14) SID-PKZ 20 0 Total 20 0 Costs of services (note 5.16) Insurance premiums (SID-PKZ) Other services (NLB) 1 17 SID Bank 2 0 Total

48 ANNUAL REPORT 2009 PRVI FAKTOR LJUBLJANA 96 Other operating expenses (note 5.19) Costs of payment services and bank fees (NLB) Total Factoring receivables (note 5.4) NLB NLB Interfinanz 0 47 Total Borrowings as at 31 December 2009 (note 5.8): Creditor 31 Dec 2009 Maturity Short-term loan (SID) 5, July 2010 Short-term loan (SID) 9, July 2010 Short-term loan (SID) 4, June 2010 Short-term loan (SID) 25,030 8 Dec 2010 Revolving short-term loan (NLB) 1 26 Feb 2010 Short-term loan (NLB) 29, Feb ,804 Borrowings were remunerated at rates from 4.41% to 5.60% p.a. Borrowings as at 31 December 2008 (note 5.8): Creditor 31 Dec 2008 Maturity Short-term credit line (SID) 5,316 8 Jan 2009 Short-term loan (SID) 9,230 8 Jan 2009 Revolving short-term loan (NLB) 11, Jan 2009 Short-term loan (NLB) 42, Jan ,229 Borrowings were remunerated at rates from 4.3% to 5.8% p.a. As at year-end, the company did not have receivables from the director or other managers Post balance sheet events There have been no events after the balance sheet date (31 December 2009) that could significantly affect the company s financial statements contained herein.