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The content of the Annual Report for 2010 1 INTRODUCTION 3 11 Introductory Word by the Company s Managing Director 3 12 Identification Basic Facts of VÍTKOVICE CYLINDERS as 4 13 Position in the Group 5 14 Management of VÍTKOVICE CYLINDERS as 7 2 PRODUCTION BASIC FACTS 8 21 Investments and Modernisation 8 22 Technology and Reasearch 8 23 Environment 9 24 Employees 9 3 SALES - BASIC FACTS 10 31 Steel Cylinders 10 32 Grinding Balls and Bars 10 33 Engineering 11 4 FINANCIAL STATEMENTS of the Company as of 31122010 12 5 AUDITOR S REPORT as of 31122010 on the Audit of the Financial Statements, Related Parties Report and the Annual Report for 2010 19 6 RELATED PARTIES REPORT for 2010 22 7 REPORT OF THE BOARD OF DIRECTORS on the Entrepreneurial Activities of VÍTKOVICE CYLINDERS as and on Its Assets in 2010 31-2 -
1 Introduction 1 INTRODUCTION 11 Introductory Word by the Company s Managing Director Dear shareholders, ladies and gentlemen, If I was to describe the year of 2010 and its impact on our Company VÍTKOVICE CYLINDERS as, I would have to conclude that, this year once again, we were not spared the consequences of the negative economic developments in the world markets It was not until the second half of 2010 that we experienced a stronger recovery of demand for steel cylinders On the other hand, however, we had to face a difficult situation caused by a major increase in the prices for input raw materials, for extruded cylinders 2010 was marked by our continued efforts to maintain the trend of optimizing our production and our product prices in order to maximize the Company s financial performance We worked very intensively to ensure a continuous increase in the capacities of the existing production aggregates and lines; we enhanced our production technology with innovations and continued in permanent improvement In the new steel cylinder plant, we were able to achieve the so-far maximum production volume since the very start of the line, with an increase in the sold quantity of steel cylinders of as much as 84% over 2009 We achieved very positive results in the sale of grinding balls where our sales revenue jumped up by 11% compared to 2009, amounting to nearly CZK 416 million and in the sale of highpressure accumulators where we sold 41% more than in 2009 The total sale volume of steel cylinders at the level of 425,722 pieces represented a 23% increase over 2009 We successfully obtained an ISO/TS 16 949 certificate, which we consider a very significant step forward; this is also related to the launch of our cooperation with a German car manufacturer where we became a supplier of CNG-1 high-pressure steel cylinders designed for the automotive industry In our opinion, CNG-1 car cylinders constitute a very important market segment; the increase of supplies recorded in this industry in 2010 is a major success for our Company, whether it involves cylinders intended for OEM customers (Original Equipment Manufacturer car maker) or for car conversions The fact that our cylinders have built up a leading position both in the Czech and the world markets is not only pleasing but, at the same time, also binding We cooperate and communicate with other modern steel works and metallurgical plants to secure further development of our Company as well as of the entire industry We rely on the skills of our employees, on our organization and the technical facilities, as well as on the important support from VÍTKOVICE MACHINERY GROUP Our success builds on the high-quality team work delivered by all staff in our Company In 2011 we want to face new challenges, particularly in the automotive field, and we are convinced that we will be able to fully seize all opportunities and to strengthen our position, reputation and good relationships with our business partners Our goal is also to continue in the dynamic development of the project concerning the transition of car drive systems from conventional fuels to the alternative compressed natural gas (CNG) drive Ing Jaroslav Šarovský, MBA Company Managing Director - 3 -
1 Introduction 12 Identification Basic Facts of VÍTKOVICE CYLINDERS as Business name: VÍTKOVICE CYLINDERS as Legal form: Joint stock company Headquarters: Ruská 24/83, 706 00 Ostrava Vítkovice ID no: 25849026 VAT no: CZ25849026 Date of Entry in the Register: 1st January 2000 Registering Court: Regional Court in Ostrava Entry in the Register: Section B, File 2260 Telephone: +420 596 664 666 Fax: +420 596 664 616 E-mail: info@vitkovicecylinderscz URL: wwwvitkovicecylinderscz Registered capital: Core activity: Shareholders: 500 000 000,- CZK Installation, repair, reconstruction, inspection and tests of reserved pressure facilities and periodical tests of gas vessels VTK CYLINDERS sro Ruská 2887/101 706 02 Ostrava - Vítkovice ID 26875756-4 -
1 Introduction 13 Position in the Group Des Business name Headquarters VÍTKOVICE HOLDING, as Ostrava, Vítkovice, Ruská 2887/101, PSČ 706 02 1 VTK CYLINDERS sro Ostrava, Vítkovice, Ruská 2887/101, PSČ 706 02 11 VÍTKOVICE CYLINDERS as Ostrava-Vítkovice, Ruská 24/83, PSČ 706 00 111 VÍTKOVICE Kordt und Rosch GmbH 58840 Plettenberg, Německo 112 LAHVARNA BROD doo Vladimira Filakovca 3, 35000 Slavonski Brod, Croatia 12 VÍTKOVICE MILMET SA Sosnowiec 41-200, ul Gen Grota-Roweckiego 130, Polsko 121 VÍTKOVICE HTB as Ostrava, Vítkovice, Ruská 2887/101, PSČ 706 02 1211 KZWM OGNIOCHRON SA Andrychów 34-120, ul Krakowska 83 C, Polsko 122 KZWM OGNIOCHRON SA Andrychów 34-120, ul Krakowska 83 C, Polsko 1221 Silesian Gaz w Siemianowicach sp z oo Siemianowice Slaskie 41-103, ul Žeromskiego 21, Polsko 13 SAINVER SA Sarmiento 846, 7 piso, dpto A, Capital Federal, Argentina 14 CIDEGAS SA Av San Martin 6445, (1419) Capital, Buenos Aires, Argentina 141 SAINVER SA Sarmiento 846, 7 piso, dpto A, Capital Federal, Argentina 15 VÍTKOVICE, as Ostrava-Vítkovice, Ruská 2887/101, PSČ 706 02 2 VÍTKOVICE, as Ostrava-Vítkovice, Ruská 2887/101, PSČ 706 02 3 VÍTKOVICE REVMONT as Ostrava, Vítkovice, Ruská 2887/101, PSČ 706 02 4 VTK SECURITIES sro Ostrava, Vítkovice, Ruská 2887/101, PSČ 706 02 41 VÍTKOVICE, as Ostrava-Vítkovice, Ruská 2887/101, PSČ 706 02 411 VÍTKOVICE HEAVY MACHINERY as Ostrava - Vítkovice, Ruská 2887/101, PSČ 706 02 4111 Hutní montáže, as Ostrava, Vítkovice, Ruská 1162/60, PSČ 703 83 41111 HMO Stahlbau und Montage GmbH Hammerstrasse 88, 085 23 Plauen, Německo 41112 CHEMONT, as Brno, Vídeňská 119, okres Brno-město, PSČ 619 00 41113 Ti kran servis sro Sviadnov, Nádražní 448, PSČ 739 25 41114 Mostárna Hustopeče, as Hustopeče u Brna, Nádražní 43, PSČ 693 84 41115 INTERMONTÁŽ - servis, sro ul M Stelmacha 3, Kyjev - 40, Ukrajina 41116 PRIS - Hutní montáže Ostrava Nusupbekova st 32, 480016 Almaty, Kazachstán 41117 GEO - CZ Construction Engineering, spol s ro ul Mazniašvili 4, 380002 Tbilisi, okres Čugureti, Gruzie 412 VÍTKOVICE Lisovna, spol s ro "v likvidaci" Ostrava-Vítkovice, Ruská 101 413 VÍTKOVICE ITS as do 26 11 2010 Ostrava, Vítkovice, Ruská 60, PSČ 706 02 414 VÍTKOVICE RP Slovakia s ro do 1 1 2010 Vstupný areál U S Steel, Košice 044 54, Slovensko 415 VÍTKOVICE SLOVAKIA as (do 1 1 2010 HBS Invest, as) Zámočnícká 8, Bratislava, PSČ 811 03, Slovensko 416 VÍTKOVICE ÚAM as Ostrava, Vítkovice, Ruská 2887/101, PSČ 706 02 417 VÍTKOVICE TESTING CENTER s r o Ostrava - Hulváky, Pohraniční 584/142, PSČ 709 00 418 VÍTKOVICE MECHANIKA as Ostrava, Vítkovice, Ruská 2929/101A, PSČ 706 02 419 VÍTKOVICE GEARWORKS as Ostrava - Vítkovice, Ruská čp 83/24, PSČ 706 02 4191 VÍTKOVICE MKV sro Plzeň 1, Lochotínská 407/13, okres Plzeň-město, PSČ 301 66 4110 VÍTKOVICE Doprava, as Ostrava, Moravská Ostrava, ulice 1 máje 3302/102 A, PSČ 703 00 4111 VÍTKOVICE POWER ENGINEERING as Ostrava, Vítkovice, Ruská 1142/30, PSČ 706 00 4112 VÍTKOVICE HARD POLSKA sp z oo Sosnowiec 41-200, ul Gen Grota-Roweckiego 130, Polsko 4113 VÍTKOVICE REALITY DEVELOPMENTS sro Ostrava, Vítkovice, Ruská 2887/101, PSČ 706 02 41131 VTK SERVICE sro Ostrava, Vítkovice, Ruská 468/58, PSČ 706 02 4114 AIRCRAFT RENT as Ostrava, Vítkovice, Ruská 2887/101, PSČ 706 02 4115 VÍTKOVICE NP as Ostrava, Vítkovice, Ruská 2887/101, PSČ 706 02 4116 PRVNÍ VÍTKOVICKÁ PERSONÁLNÍ sro Ostrava, Vítkovice, Ruská 2887/101, PSČ 706 02 4117 VTK SPECIAL as Praha 1, Nové Město, Václavské náměstí 773/4, PSČ 110 00 41171 PA SPECIAL, as Praha 1, Nové Město, Václavské náměstí 773/4, PSČ 110 00 od 22 9 2010-5 -
1 Introduction Des Business name Headquarters 4118 VÍTKOVICE HAMMERING as Ostrava, Vítkovice, Ruská 2887/101, PSČ 706 02 4119 VL Servis sro od 24 5 2010 Ostrava-Vítkovice, Ruská 24/83, PSČ 706 02 4120 VÍTKOVICE GREEN TECHNOLOGY as Ostrava, Vítkovice, Ruská 2887/101, PSČ 706 02 4121 VÍTKOVICE IT SOLUTIONS as (do 4 11 2010 VÍTKOVICE CTM as) Ostrava, Vítkovice, Ruská 2887/101, PSČ 706 02 41211 VÍTKOVICE ITS as od 26 11 2010 Ostrava, Vítkovice, Ruská 60, PSČ 706 02 41212 NETPROSYS, sro od 26 11 2010 Brno, Zábrdovice, Cejl 62, PSČ 602 00 41213 MEDIUM SOFT as od 26 11 2010 Ostrava, Moravská Ostrava, Cihelní 14, PSČ 702 00 412131 TAXNET, sro od 26 11 2010 Moravská Ostrava, Cihelní 14, PSČ 702 00 412132 MEDIUM SOFT Slovakia, as od 26 11 2010 Miletičova 23, Bratislava 821 09, Slovensko 412133 MEDIUM SOFT - Polska SP z o o od 26 11 2010 Poznaň 60-573, ul Lindego 6, Polsko 4122 VÍTKOVICE RECYCLING as Ostrava, Vítkovice, Ruská 2927, PSČ 706 02 4123 Spojené slévárny, spol s ro Praha 10, Srbínská 4/867, PSČ 100 00 4124 NETPROSYS, sro do 26 11 2010 Brno, Zábrdovice, Cejl 62, PSČ 602 00 4125 MEDIUM SOFT as do 26 11 2010 Ostrava, Moravská Ostrava, Cihelní 14, PSČ 702 00 41251 TAXNET, sro do 26 11 2010 Moravská Ostrava, Cihelní 14, PSČ 702 00 41252 MEDIUM SOFT Slovakia, as do 26 11 2010 Miletičova 23, Bratislava 821 09, Slovensko 41253 MEDIUM SOFT - Polska SP z o o do 26 11 2010 Poznaň 60-573, ul Lindego 6, Polsko 4126 VÍTKOVICE SCHREIER sro Ostrava, Vítkovice, Kotkova 431/4A, PSČ 706 02 4127 ARS VÍTKOVICE sro Ostrava, Vítkovice, Ruská 681/72A, PSČ 706 02 4128 VÍTKOVICE - IOS sro Kadaň, Tušimice 13, okres Chomutov, PSČ 432 01 4129 Langfang Panwei Enviromental Engineering Co LTD provincie Hebei, okres Guan, Lirangdian, ul Kangli č 8, Čína 4130 Przedsiebiorstwo Budownictwa, Eksportu i Uslug Techniczno-Handlowych "BUDEH" spz Sosnowiec 41-200, ul Gen St Grota-Roweckiego 130, Polsko o o 4131 idtax Česká republika, sro od 16 11 2010 Ostrava, Moravská Ostrava, Cihelní 1575/14, PSČ 702 00 4132 VITKOVICE INDIA POWER PRIVATE Ground Floor, Block F, International Trade Tower, Nehru Place, New Delhi - 110019, LIMITED od 30 7 2010 Delhi, INDIA 5 VÍTKOVICE ACCOUNTING as Ostrava, Vítkovice, Ruská 2887/101, PSČ 706 02-6 -
1 Introduction 14 Management of VÍTKOVICE CYLINDERS as Ing Jaroslav Šarovský, MBA Office: Managing Director He graduated from the Mining University (VŠB - TU Ostrava), Faculty of Metallurgy and Materials Engineering He has working in the company since 2010 2nd January 2010 he was appointed CEO Ing Marcel Ujfaluši Office: Commercial Director He graduated from the University of Economics in Prague, faculty of International Business In the business department in the company he has working since 2006 Since 2007 he was a Head of Grinding balls and Trade and since 1 July 2010 he became a Commercial Director Ing Alena Zezulková Office: Financial Director She graduated from the Mining University (VŠB - TU Ostrava), faculty of Economy, major subject The Economy of Industry She has working for the company as a Financial Director since 20 August 2010 Ing Pavel Pawlas Office: Technical Director He graduated from the Mining University (VŠB - TU Ostrava), Faculty of Metallurgy, major subject the Foundry Industry He has working in the company since 1997 Since 1 July 2009 he was on position of Production Director and since 1 July 2010 he became a Technical Director Ing David Otruba Office: Production Director He graduated from the Mining University (VŠB - TU Ostrava), Faculty of Metallurgy and Materials Engineering, major subject the Metal Forming He has working in the company since 1 March 2010, when he was appointed a Production Director - 7 -
2 Production Basic facts 2 PRODUCTION BASIC FACTS 21 Investments and Modernisation An amount of CZK 12,270 th was allocated for acquisition of capital assets in 2010 The most important investment project was the acquisition of a machine tool center for CZK 7,000 th Another major project implemented this year involved the renewal of CNG transport technology for an amount of CZK 1,085 th The total volume of capitalized assets was CZK 8,085 th in 2010 The investment plan for 2011 envisages total expenses of CZK 44,900 th, with the acquisition of a LEIFELD steel cylinder capping machine being the most important project in the 2011 investment plant 22 Technology and Reasearch In 2010, the product and product technology development focused on homologation of additional types of CNG-1 cylinders used in the automotive industry, which are produced by applying reverse extruding We successfully implemented new production technology for cylinders with the outside diameters of 204 mm, 222 mm and 320 mm The main emphasis was placed on the development of cylinders, in which it was possible to reach the weight / inner volume ratio coefficient of 09 A quality management system according to EN ISO/TS 16949 has been successfully implemented and certified as part of the supplies of CNG-1 cylinders for the automotive industry In the next year, we also plan to extend the homologation for cylinders, which are and will be required by the Asian market 2010 was marked by the increasingly stricter and ever more demanding requirements of our customers for the quality and fixed-date deliveries of our products Our Company faced these requirements with determination and started to build a production planning system primarily based on respecting the agreed deadlines for our deliveries in the form of campaign schedules for the particular batches, ie product groups, in order to not only ensure timely deliveries, but also to minimize the costs associated with frequent technological idle times of the individual machinery aggregates The timely delivery indicator has become the primary objective of production planning and has also been integrated in the incentives programme for our staff Minimization of technological idle times has a clearly favourable effect of reducing incompatible products coming from the individual aggregates Very intensive efforts were made in 2010 to increase production on our most advanced production line in Plant 3 The new line produced 1347% more steel cylinders compared to 2009, and this trend will continue in 2011 as well In engineering applications, development activities were directed towards mobile and stationary storage systems for trailers, home filling stations and container filling stations In 2010, the development was focused mainly on trailers for an Asian customer It concerned trailers with a total capacity of 8,480 litres of transported natural gas As for occupational safety and health protection, the year of 2010 was successful in terms of increasing occupational safety at the workstations We achieved a significant reduction in the number of work accidents by 60% compared to 2009-8 -
2 Production Basic facts 23 Environment VÍTKOVICE CYLINDERS as pays continuous attention to environmental protection improvement The analysis of graphite lubricant consumption in the Acheson moulding tool per moulded product area implies that the lubricant consumption in the Plant 3 extrusion shop decreased by 1081% compared to 2009 This contributed significantly to the reduction of polluted waste water volume and the reduction in quantity of dangerous waste 05 01 06 Oil slurry The occurrence of the O waste was also substantially reduced in 2010 24 Employees Staff and wagess The average relative headcount in 2010: Plan 430 Fact 397 The wage policy was performed in accordance with the agreed remuneration principles based on the collective agreement The Company reached an agreement with the trade union and concluded a single 2010 2012 Collective Agreement of VÍTKOVICE MACHINERY GROUP, which was signed, in total, by 11 VMG companies The signing of this collective agreement entails a substantial harmonization of rules and commitments taken in the field of employment, remuneration, working conditions, occupational safety, social and legal security The average wage increased by 38% on a year-to-year basis against the actual 2009 figure, amounting to CZK 24,027 Motivation system The company has preferred, on a long-term basis, a motivation system which emphasises the specific contribution of employees to increasing work productivity, while achieving the required quality of products and services A motivation system, which has been applied for a production employee, regulated the variable portion of wages bonus depending on the meeting and exceeding of defined shift performances Administrative employees in the production technical unit receive monthly bonuses if they meet defined criteria (meeting the sale plan and meeting the planned volume indicators for individual productions) Administrative employees of the commercial section receive bonuses according to their assurance of job orders in their business groups for the given month and the proportion of overdue receivables in total receivables Indicator Average relative head count Actual as of in 2010 112010 31122010 Employees, total 397 384 409 Of this: workers 315 309 323 Administrative 82 75 86 Employees by age, Average < 20 21-30 31-40 41-50 51-60 > 60 as of 31122010 age Employees, total 40,1 5 97 120 91 91 5 Of this: workers 39,7 5 78 95 73 69 3 Administrative 41,5 0 19 25 18 22 2 Employees by education, Primary Vocational Secondary University as of 31122010 Employees, total 21 240 107 41 Of this: workers 20 234 67 2 Administrative 1 6 40 39-9 -
3 Sales Basic facts 3 SALES - BASIC FACTS The company s sales are divided into three sales groups Steel Cylinders, Engineering and Grinding Equipment All of these sales groups perform their own sales policy and strategy, because they are quite different 31 Steel Cylinders Steel pressure cylinders are a strategic product for our Company; their sale accounted for 705% of the total turnover generated by the Company in 2010 After more than a decade of continuous growth, the sale of these products recorded a strong decline in 2009, both in the total quantity sold and in financial terms During 2010, the market climate related to the global economic slowdown has been changing and the demand has gradually recovered We were able to return to a growth path, particularly as a result of the strong sale in the third and fourth quarter, thus achieving that 2010 was more successful than 2009 both overall as well as in most particular aspects The highest year-on-year increases were achieved in the sale of extruded cylinders with a diameter of 204 229 mm and accumulators In most segments, however, the increase in quantity was significantly stronger than the increase in sales revenue, which proves the year-to-year decrease of unit prices and, in particular, the increased share of smaller volume cylinders in the total sales There was a significant excess of supply over demand on the market throughout the year, both on the European continent and globally For most cylinder types, there was a continued trend for the market being increasingly occupied by Asian producers with products of lower quality, but also lower price On contrary, the special product range comprising cylinders with an operating pressure above 300 bar, with a capacity of more than 100 litres, with multiple threading or more corrosion-resistant coating does not have to face such a fierce price competition We achieved a major breakthrough in the segment of cylinders for the automotive industry In 2010, the sale volume of these cylinders was 16 times higher than in the previous year Serial deliveries take place with both European and Asian car manufacturers as destination, while the obtained ISO TS certificates open the doors for us in additional car factories In the product range of seamless pressure steel cylinders, the customer portfolio experienced further broadening, particularly as a result of the production expansion in the most advanced line of Plant 3 We have won a number of new clients, especially for cylinders with a water capacity above 140 litres In 2010, our vessels continued to be exported all around the world, including Latin America, Middle and Far East Traditionally, our most important customers are still in our closer vicinity, with more than half of the production being intended for EU customers 32 Grinding Balls and Bars We were able to generate sufficient sales for favourable prices among our customers throughout 2010 In the first half of the year, the market for grinding balls showed good price stability at the level of end 2009 As a result of the sharp price increase of input materials, we were forced to adapt our price policy during the second quarter of the year Most customers accepted the changes; in some segments, however, there was a short-term loss of our position of the main supplier Also this commodity is finding its position on the global markets, but the portfolio of traditional customers is anchored in Europe even more strongly than with vessels The changes in the national political conditions in several post-soviet republics were negatively reflected in the ownership structures of a number of mining companies and, consequently, in the distortion of the developed - 10 -
3 Sales Basic facts distribution networks On contrary, price changes at the global level allowed the first larger deliveries of grinding balls to the Latin America as well as our return to the African markets Overall, the year of 2010 in this commodity was the most successful in the Company s history, and all fundamental indicators were met as planned 33 Engineering In 2010 we continued to develop our customer portfolio both at the domestic and foreign markets Thanks to our partners, we are gaining access to the largest players in CNG and LNG segments We achieved significant progress in the supplies of CNG filling stations, particularly in the Central European territory We successfully performed several deliveries of bundles for manufacturers of CNG and LCNG filling stations and gas (CNG a CBG) transport containers - 11 -
4 Financial Statements of the Company as of 31122010 4 FINANCIAL STATEMENTS of the Company as of 31122010 Balance Sheet - Assets - 12 -
4 Financial Statements of the Company as of 31122010-13 -
4 Financial Statements of the Company as of 31122010 Balance Sheet - Liabilities - 14 -
4 Financial Statements of the Company as of 31122010-15 -
4 Financial Statements of the Company as of 31122010 Profit and Loss Account - 16 -
4 Financial Statements of the Company as of 31122010-17 -
4 Financial Statements of the Company as of 31122010 Cash Flow Statement The balance sheet day was not followed by any facts that would have a significant influence on the data specified in the annual report The company VÍTKOVICE CYLINDERS as does not have any organizational department abroad The annex to the financial statement of the company VÍTKOVICE CYLINDERS as for the year 2010 is stored in the seat of the company - 18 -
5 Auditor's Report on Financial Statements as of 31122010 5 AUDITOR S REPORT as of 31122010 on the Audit of the Financial Statements, Related Parties Report and the Annual Report for 2010-19 -
5 Auditor's Report on Financial Statements as of 31122010-20 -
5 Auditor's Report on Financial Statements as of 31122010-21 -
6 Related Parties Report for 2010 6 RELATED PARTIES REPORT for 2010 VÍTKOVICE CYLINDERS as is part of the business concern VÍTKOVICE HOLDING, as Its sphere of business covers essentially the production of pressure devices, their assembly, repairs, reconstruction, revisions and testing The present report describes its relationships with other entities in the VÍTKOVICE HOLDING, as Group Table No 1 includes a list of companies controlled by VÍTKOVICE HOLDING, as All of the companies mentioned in this Schedule were examined, for the 2010 accounting period or, to be more precise, as at 31 December 2010, in relation to the accounting entity as regards - Any concluded contracts; - Performances and counter-performances Tables No 2 and 3 provide an overview of the number of contracts signed in 2010 in relation to both purchasing and sales transactions All of these contracts were concluded at the arm s length principle, ie under standard commercial terms and conditions Table No 4 includes the 2010 turnovers for both purchasing and sales, as well as the balance of receivables and liabilities as at 31 December 2010 in relation to the companies that also belong to VÍTKOVICE HOLDING, as VÍTKOVICE CYLINDERS as provided performance (sale eg of products and services) to related parties and received financial counter-performance, or provided financial counter-performance (purchase) to related parties in return for their performance in the form of deliveries, such as services, materials, goods, etc The Company suffered no loss as a result of the contracts concluded with the related parties or as a result of other measures with these related parties - 22 -
6 Related Parties Report for 2010 Order No List of companies controlled by VÍTKOVICE HOLDING, as in the period from 1112010 to 31122010 TABLE No 1 Company name Registered office ID No VÍTKOVICE HOLDING, as Ostrava, Vítkovice, Ruská 2887/101, PSČ 706 02 258 16 039 1 VTK CYLINDERS sro Ostrava, Vítkovice, Ruská 2887/101, PSČ 706 02 268 75 756 11 VÍTKOVICE CYLINDERS as Ostrava-Vítkovice, Ruská 24/83, PSČ 706 00 258 49 026 111 VÍTKOVICE Kordt und Rosch GmbH 58840 Plettenberg, Německo 112 LAHVARNA BROD doo Vladimira Filakovca 3, 35000 Slavonski Brod, Croatia 12 VÍTKOVICE MILMET SA Sosnowiec 41-200, ul Gen Grota-Roweckiego 130, Polsko 272019626 121 VÍTKOVICE HTB as Ostrava, Vítkovice, Ruská 2887/101, PSČ 706 02 451 92 219 1211 KZWM OGNIOCHRON SA Andrychów 34-120, ul Krakowska 83 C, Polsko 122 KZWM OGNIOCHRON SA Andrychów 34-120, ul Krakowska 83 C, Polsko 1221 Silesian Gaz w Siemianowicach sp z oo Siemianowice Slaskie 41-103, ul Žeromskiego 21, Polsko 13 SAINVER SA Sarmiento 846, 7 piso, dpto A, Capital Federal, Argentina 14 CIDEGAS SA Av San Martin 6445, (1419) Capital, Buenos Aires, Argentina 141 SAINVER SA Sarmiento 846, 7 piso, dpto A, Capital Federal, Argentina 15 VÍTKOVICE, as Ostrava-Vítkovice, Ruská 2887/101, PSČ 706 02 451 93 070 2 VÍTKOVICE, as Ostrava-Vítkovice, Ruská 2887/101, PSČ 706 02 451 93 070 3 VÍTKOVICE REVMONT as Ostrava, Vítkovice, Ruská 2887/101, PSČ 706 02 258 28 258 4 VTK SECURITIES sro Ostrava, Vítkovice, Ruská 2887/101, PSČ 706 02 268 75 951 41 VÍTKOVICE, as Ostrava-Vítkovice, Ruská 2887/101, PSČ 706 02 451 93 070 411 VÍTKOVICE HEAVY MACHINERY as Ostrava - Vítkovice, Ruská 2887/101, PSČ 706 02 258 77 950 4111 Hutní montáže, as Ostrava, Vítkovice, Ruská 1162/60, PSČ 703 83 155 04 140 41111 HMO Stahlbau und Montage GmbH Hammerstrasse 88, 085 23 Plauen, Německo 41112 CHEMONT, as Brno, Vídeňská 119, okres Brno-město, PSČ 619 00 463 45 841 41113 Ti kran servis sro Sviadnov, Nádražní 448, PSČ 739 25 640 84 892 41114 Mostárna Hustopeče, as Hustopeče u Brna, Nádražní 43, PSČ 693 84 499 68 360 41115 INTERMONTÁŽ - servis, sro ul M Stelmacha 3, Kyjev - 40, Ukrajina 41116 PRIS - Hutní montáže Ostrava Nusupbekova st 32, 480016 Almaty, Kazachstán 41117 GEO-CZ Construction Engineering, spol s ro ul Mazniašvili 4, 380002 Tbilisi, okres Čugureti, Gruzie 412 VÍTKOVICE Lisovna, spol s ro "v likvidaci" Ostrava-Vítkovice, Ruská 101 623 05 492 413 VÍTKOVICE ITS as do 26 11 2010 Ostrava, Vítkovice, Ruská 60, PSČ 706 02 619 72 576 414 VÍTKOVICE RP Slovakia s ro do 1 1 2010 Vstupný areál U S Steel, Košice 044 54, Slovensko 31 692 389 415 VÍTKOVICE SLOVAKIA as do 1 1 2010 HBS Invest, as) Zámočnícká 8, Bratislava, PSČ 811 03, Slovensko 35 744 618 416 VÍTKOVICE ÚAM as Ostrava, Vítkovice, Ruská 2887/101, PSČ 706 02 285 94 771 417 VÍTKOVICE TESTING CENTER s r o Ostrava - Hulváky, Pohraniční 584/142, PSČ 709 00 258 70 556 418 VÍTKOVICE MECHANIKA as Ostrava, Vítkovice, Ruská 2929/101A, PSČ 706 02 258 71 587 419 VÍTKOVICE GEARWORKS as Ostrava - Vítkovice, Ruská čp 83/24, PSČ 706 02 258 77 933 4191 VÍTKOVICE MKV sro Plzeň 1, Lochotínská 407/13, okres Plzeň-město, PSČ 301 66 263 25 985 4110 VÍTKOVICE Doprava, as Ostrava, Moravská Ostrava, ulice 1 máje 3302/102 A, PSČ 703 00 259 09 339 4111 VÍTKOVICE POWER ENGINEERING as Ostrava, Vítkovice, Ruská 1142/30, PSČ 706 00 268 23 357-23 -
6 Related Parties Report for 2010 Order No Company name Registered office ID No 4112 VÍTKOVICE HARD POLSKA sp z oo Sosnowiec 41-200, ul Gen Grota-Roweckiego 130, Polsko 4113 VÍTKOVICE REALITY DEVELOPMENTS sro Ostrava, Vítkovice, Ruská 2887/101, PSČ 706 02 277 86 749 41131 VTK SERVICE sro Ostrava, Vítkovice, Ruská 468/58, PSČ 706 02 285 90 953 4114 AIRCRAFT RENT as Ostrava, Vítkovice, Ruská 2887/101, PSČ 706 02 278 00 458 4115 VÍTKOVICE NP as Ostrava, Vítkovice, Ruská 2887/101, PSČ 706 02 278 45 206 4116 PRVNÍ VÍTKOVICKÁ PERSONÁLNÍ sro Ostrava, Vítkovice, Ruská 2887/101, PSČ 706 02 483 92 758 4117 VTK SPECIAL as Praha 1, Nové Město, Václavské náměstí 773/4, PSČ 110 00 289 82 495 41171 PA SPECIAL, as od 22 9 2010 Praha 1, Nové Město, Václavské náměstí 773/4, PSČ 110 00 284 20 161 4118 VÍTKOVICE HAMMERING as Ostrava, Vítkovice, Ruská 2887/101, PSČ 706 02 278 07 088 4119 VL Servis sro od 24 5 2010 Ostrava-Vítkovice, Ruská 24/83, PSČ 706 02 258 53 627 4120 VÍTKOVICE GREEN TECHNOLOGY as Ostrava, Vítkovice, Ruská 2887/101, PSČ 706 02 286 06 540 4121 VÍTKOVICE IT SOLUTIONS as (do 4 11 2010 VÍTKOVICE CTM as) Ostrava, Vítkovice, Ruská 2887/101, PSČ 706 02 286 06 582 41211 VÍTKOVICE ITS as do 26 11 2010 Ostrava, Vítkovice, Ruská 60, PSČ 706 02 619 72 576 41212 NETPROSYS, sro od 26 11 2010 Brno, Zábrdovice, Cejl 62, PSČ 602 00 253 44 536 41213 MEDIUM SOFT as od 26 11 2010 Ostrava, Moravská Ostrava, Cihelní 14, PSČ 702 00 253 77 132 412131 TAXNET, sro od 26 11 2010 Moravská Ostrava, Cihelní 14, PSČ 702 00 253 59 924 412132 MEDIUM SOFT Slovakia, as od 26 11 2010 Miletičova 23, Bratislava 821 09, Slovensko 35 910 518 412133 MEDIUM SOFT - Polska SP z o o od 26 11 2010 Poznaň 60-573, ul Lindego 6, Polsko 4122 VÍTKOVICE RECYCLING as Ostrava, Vítkovice, Ruská 2927, PSČ 706 02 277 81 291 4123 Spojené slévárny, spol s ro Praha 10, Srbínská 4/867, PSČ 100 00 602 02 505 4124 NETPROSYS, sro do 26 11 2010 Brno, Zábrdovice, Cejl 62, PSČ 602 00 253 44 536 4125 MEDIUM SOFT as do 26 11 2010 Ostrava, Moravská Ostrava, Cihelní 14, PSČ 702 00 253 77 132 41251 TAXNET, sro do 26 11 2010 Moravská Ostrava, Cihelní 14, PSČ 702 00 253 59 924 41252 MEDIUM SOFT Slovakia, as do 26 11 2010 Miletičova 23, Bratislava 821 09, Slovensko 35 910 518 41253 MEDIUM SOFT - Polska SP z o o do 26 11 2010 Poznaň 60-573, ul Lindego 6, Polsko 4126 VÍTKOVICE SCHREIER sro Ostrava, Vítkovice, Kotkova 431/4A, PSČ 706 02 476 69 454 4127 ARS VÍTKOVICE sro Ostrava, Vítkovice, Ruská 681/72A, PSČ 706 02 253 65 401 4128 VÍTKOVICE - IOS sro Kadaň, Tušimice 13, okres Chomutov, PSČ 432 01 473 06 891 4129 4130 Langfang Panwei Enviromental Engineering Co LTD Przedsiebiorstwo Budownictwa, Eksportu i Uslug Techniczno-Handlowych "BUDEH" spz o o provincie Hebei, okres Guan, Lirangdian, ul Kangli č 8, Čína Sosnowiec 41-200, ul Gen St Grota-Roweckiego 130, Polsko 850017212 4131 idtax Česká republika, sro od 16 11 2010 Ostrava, Moravská Ostrava, Cihelní 1575/14, PSČ 702 00 285 88 487 4132 VITKOVICE INDIA POWER PRIVATE LIMITED od 30 7 2010 Ground Floor, Block F, International Trade Tower, Nehru Place, New Delhi - 110019, Delhi, INDIA 5 VÍTKOVICE ACCOUNTING as Ostrava, Vítkovice, Ruská 2887/101, PSČ 706 02 278 21 323 Poznámky: As at 1 January 2010, the merger by acquisition of VÍTKOVICE RP Slovakia sro and HBS Invest, as as the successor was registered in the Commercial Register of the entities concerned VÍTKOVICE RP Slovakia sro as the company being acquired was wound up and dissolved without liquidation, with a legal successor At the same time, the successor HBS Invest, as changed its trade name and the registered office of the company as follows: VÍTKOVICE SLOVAKIA as, Zámočnícka 13, Bratislava, postcode 811 03, Comp reg No 35 744 618, registered in the Commercial Register kept by the District Court in Bratislava, Section Sa, file No 1711/B - 24 -
6 Related Parties Report for 2010 LIST OF CONTRACTS CONCLUDED (FROM AUTHOR) VÍTKOVICE CYLINDERS a s WITH RELATED PARTIES IN THE PERIOD FROM 01012010-31122010 TABLE No 2 Order No Company name ID No Closed Sale Contracts VÍTKOVICE HOLDING, as 258 16 039 1 VTK CYLINDERS sro 268 75 756 11 VÍTKOVICE CYLINDERS as 258 49 026 111 VÍTKOVICE Kordt und Rosch GmbH 92 112 LAHVARNA BROD doo 73 12 VÍTKOVICE MILMET SA 272019626 81 121 VÍTKOVICE HTB as 451 92 219 87 1211 KZWM OGNIOCHRON SA 122 KZWM OGNIOCHRON SA 1221 Silesian Gaz w Siemianowicach sp z oo 13 SAINVER SA 14 CIDEGAS SA 141 SAINVER SA 15 VÍTKOVICE, as 451 93 070 2 VÍTKOVICE, as 451 93 070 3 VÍTKOVICE REVMONT as 258 28 258 0 4 VTK SECURITIES sro 268 75 951 0 41 VÍTKOVICE, as 451 93 070 0 411 VÍTKOVICE HEAVY MACHINERY as 258 77 950 4 4111 Hutní montáže, as 155 04 140 41111 HMO Stahlbau und Montage GmbH 41112 CHEMONT, as 463 45 841 41113 Ti kran servis sro 640 84 892 41114 Mostárna Hustopeče, as 499 68 360 41115 INTERMONTÁŽ - servis, sro 41116 PRIS - Hutní montáže Ostrava 41117 GEO - CZ Construction Engineering, spol s ro 412 VÍTKOVICE Lisovna, spol s ro "v likvidaci" 623 05 492 413 VÍTKOVICE ITS as 619 72 576 414 VÍTKOVICE RP Slovakia s ro do 26 11 2010 31 692 389 415 VÍTKOVICE SLOVAKIA as (do 1 1 2010 HBS Invest, as) 416 VÍTKOVICE ÚAM as 285 94 771 417 VÍTKOVICE TESTING CENTER s r o 258 70 556 35 744 618 1 418 VÍTKOVICE MECHANIKA as 258 71 587 5-25 -
6 Related Parties Report for 2010 Order No Company name ID No Closed Sale Contracts 419 VÍTKOVICE GEARWORKS as 258 77 933 1 4191 VÍTKOVICE MKV sro 263 25 985 4110 VÍTKOVICE Doprava, as 259 09 339 10 4111 VÍTKOVICE POWER ENGINEERING as 268 23 357 0 4112 VÍTKOVICE HARD POLSKA sp z oo 4113 VÍTKOVICE REALITY DEVELOPMENTS sro 277 86 749 41131 VTK SERVICE sro 285 90 953 4114 AIRCRAFT RENT as 278 00 458 4115 VÍTKOVICE NP as 278 45 206 4116 PRVNÍ VÍTKOVICKÁ PERSONÁLNÍ sro 483 92 758 4117 VTK SPECIAL as 289 82 495 41171 PA SPECIAL, as od 22 9 2010 284 20 161 4118 VÍTKOVICE HAMMERING as 278 07 088 4119 VL Servis sro od 24 5 2010 258 53 627 10 4120 VÍTKOVICE GREEN TECHNOLOGY as 286 06 540 4121 VÍTKOVICE IT SOLUTIONS as (do 4 11 2010 VÍTKOVICE CTM as) 286 06 582 41211 VÍTKOVICE ITS as od 26 11 2010 619 72 576 41212 NETPROSYS, sro od 26 11 2010 253 44 536 41213 MEDIUM SOFT as od 26 11 2010 253 77 132 412131 TAXNET, sro od 26 11 2010 253 59 924 412132 MEDIUM SOFT Slovakia, as od 26 11 2010 35 910 518 412133 MEDIUM SOFT-Polska SP z o o od 26 11 2010 4122 VÍTKOVICE RECYCLING as 277 81 291 0 4123 Spojené slévárny, spol s ro 602 02 505 4124 NETPROSYS, sro do 26 11 2010 253 44 536 4125 MEDIUM SOFT as do 26 11 2010 253 77 132 41251 TAXNET, sro do 26 11 2010 253 59 924 41252 MEDIUM SOFT Slovakia, as do 26 11 2010 35 910 518 41253 MEDIUM SOFT-Polska SP z o o do 26 11 2010 4126 VÍTKOVICE SCHREIER sro 476 69 454 4127 ARS VÍTKOVICE sro 253 65 401 4128 VÍTKOVICE - IOS sro 473 06 891 4129 4130 Langfang Panwei Enviromental Engineering Co LTD Przedsiebiorstwo Budownictwa, Eksportu i Uslug Techniczno-Handlowych "BUDEH" spz o o 850017212 4131 idtax Česká republika, sro od 16 11 2010 285 88 487 4132 VITKOVICE INDIA POWER PRIVATE LIMITED od 30 7 2010 5 VÍTKOVICE ACCOUNTING as 278 21 323 2-26 -
6 Related Parties Report for 2010 LIST OF CONTRACTS CONCLUDED (FROM AUTHOR) VÍTKOVICE CYLINDERS a s WITH RELATED PARTIES IN THE PERIOD FROM 01012010-31122010 TABLE No 3 Order No Company name ID No Closed Purchase Contracts VÍTKOVICE HOLDING, as 258 16 039 1 VTK CYLINDERS sro 268 75 756 11 VÍTKOVICE CYLINDERS as 258 49 026 111 VÍTKOVICE Kordt und Rosch GmbH 7 112 LAHVARNA BROD doo 12 VÍTKOVICE MILMET SA 272019626 257 121 VÍTKOVICE HTB as 451 92 219 22 1211 KZWM OGNIOCHRON SA 122 KZWM OGNIOCHRON SA 1221 Silesian Gaz w Siemianowicach sp z oo 13 SAINVER SA 14 CIDEGAS SA 141 SAINVER SA 15 VÍTKOVICE, as 451 93 070 2 VÍTKOVICE, as 451 93 070 3 VÍTKOVICE REVMONT as 258 28 258 22 4 VTK SECURITIES sro 268 75 951 41 VÍTKOVICE, as 451 93 070 0 411 VÍTKOVICE HEAVY MACHINERY as 258 77 950 4 4111 Hutní montáže, as 155 04 140 41111 HMO Stahlbau und Montage GmbH 41112 CHEMONT, as 463 45 841 41113 Ti kran servis sro 640 84 892 41114 Mostárna Hustopeče, as 499 68 360 41115 INTERMONTÁŽ - servis, sro 41116 PRIS - Hutní montáže Ostrava 41117 GEO - CZ Construction Engineering, spol s ro 412 VÍTKOVICE Lisovna, spol s ro "v likvidaci" 623 05 492 413 VÍTKOVICE ITS as do 26 11 2010 619 72 576 60 414 VÍTKOVICE RP Slovakia s ro do 1 1 2010 31 692 389 415 VÍTKOVICE SLOVAKIA as (do 1 1 2010 HBS Invest, as) 35 744 618 416 VÍTKOVICE ÚAM as 285 94 771 417 VÍTKOVICE TESTING CENTER s r o 258 70 556 9-27 -
6 Related Parties Report for 2010 Order No Company name ID No Closed Purchase Contracts 418 VÍTKOVICE MECHANIKA as 258 71 587 36 419 VÍTKOVICE GEARWORKS as 258 77 933 4191 VÍTKOVICE MKV sro 263 25 985 4110 VÍTKOVICE Doprava, as 259 09 339 8 4111 VÍTKOVICE POWER ENGINEERING as 268 23 357 6 4112 VÍTKOVICE HARD POLSKA sp z oo 4113 VÍTKOVICE REALITY DEVELOPMENTS sro 277 86 749 41131 VTK SERVICE sro 285 90 953 1 4114 AIRCRAFT RENT as 278 00 458 4115 VÍTKOVICE NP as 278 45 206 4116 PRVNÍ VÍTKOVICKÁ PERSONÁLNÍ sro 483 92 758 4117 VTK SPECIAL as 289 82 495 41171 PA SPECIAL, as od 22 9 2010 284 20 161 4118 VÍTKOVICE HAMMERING as 278 07 088 4119 VL Servis sro od 24 5 2010 258 53 627 64 4120 VÍTKOVICE GREEN TECHNOLOGY as 286 06 540 4121 VÍTKOVICE IT SOLUTIONS as (do 4 11 2010 VÍTKOVICE CTM as) 286 06 582 41211 VÍTKOVICE ITS as od 26 11 2010 619 72 576 41212 NETPROSYS, sro od 26 11 2010 253 44 536 41213 MEDIUM SOFT as od 26 11 2010 253 77 132 412131 TAXNET, sro od 26 11 2010 253 59 924 412132 MEDIUM SOFT Slovakia, as od 26 11 2010 35 910 518 412133 MEDIUM SOFT-Polska SP z o o od 26 11 2010 4122 VÍTKOVICE RECYCLING as 277 81 291 4123 Spojené slévárny, spol s ro 602 02 505 3 4124 NETPROSYS, sro do 26 11 2010 253 44 536 4125 MEDIUM SOFT as do 26 11 2010 253 77 132 41251 TAXNET, sro do 26 11 2010 253 59 924 41252 MEDIUM SOFT Slovakia, as do 26 11 2010 35 910 518 41253 MEDIUM SOFT-Polska SP z o o do 26 11 2010 4126 VÍTKOVICE SCHREIER sro 476 69 454 4127 ARS VÍTKOVICE sro 253 65 401 1 4128 VÍTKOVICE - IOS sro 473 06 891 4129 4130 Langfang Panwei Enviromental Engineering Co LTD Przedsiebiorstwo Budownictwa, Eksportu i Uslug Techniczno-Handlowych "BUDEH" spz o o 850017212 4131 idtax Česká republika, sro od 16 11 2010 285 88 487 4132 VITKOVICE INDIA POWER PRIVATE LIMITED od 30 7 2010 5 VÍTKOVICE ACCOUNTING as 278 21 323 1-28 -
6 Related Parties Report for 2010 SUMMARY OF TURNOVERS, RECEIVABLES, PAYABLES (FROM AUTHOR) VÍTKOVICE CYLINDERS a s WITH RELATED PARTIES IN THE PERIOD FROM 01012010-31122010 TABLE No 4 Order No Company name ID No Turnover from sales Turnover from purchases Receivables as of 31122010 Payables as of 31122010 VÍTKOVICE HOLDING, as 258 16 039 269 48 156 46 28 932 1 VTK CYLINDERS sro 268 75 756 11 VÍTKOVICE CYLINDERS as 258 49 026 0 111 VÍTKOVICE Kordt und Rosch GmbH 53 973 10 235 6 305 0 112 LAHVARNA BROD doo 1 644 128 2 501 0 12 VÍTKOVICE MILMET SA 272019626 115 722 129 733 9 145 25 522 121 VÍTKOVICE HTB as 451 92 219 7 154 5 619 958 0 1211 KZWM OGNIOCHRON SA 122 KZWM OGNIOCHRON SA 1221 Silesian Gaz w Siemianowicach sp z oo 13 SAINVER SA 14 CIDEGAS SA 7 839 38 911 0 141 SAINVER SA 15 VÍTKOVICE, as 451 93 070 2 VÍTKOVICE, as 451 93 070 5 776 141 108 67 122 328 3 VÍTKOVICE REVMONT as 258 28 258 59 39 384 29 25 889 4 VTK SECURITIES sro 268 75 951 41 VÍTKOVICE, as 451 93 070 411 VÍTKOVICE HEAVY MACHINERY as 258 77 950 32 643 1 180 4 640 55 4111 Hutní montáže, as 155 04 140 2 1 0 41111 HMO Stahlbau und Montage GmbH 41112 CHEMONT, as 463 45 841 41113 Ti kran servis sro 640 84 892 41114 Mostárna Hustopeče, as 499 68 360 41115 INTERMONTÁŽ - servis, sro 41116 PRIS - Hutní montáže Ostrava 41117 GEO - CZ Construction Engineering, spol s ro 412 VÍTKOVICE Lisovna, spol s ro "v likvidaci" 623 05 492 413 VÍTKOVICE ITS as do 26 11 2010 619 72 576 414 VÍTKOVICE RP Slovakia s ro do 1 1 2010 31 692 389 415 VÍTKOVICE SLOVAKIA as (do 1 1 2010 HBS Invest, as) 35 744 618 416 VÍTKOVICE ÚAM as 285 94 771 417 VÍTKOVICE TESTING CENTER s r o 258 70 556 7 695 2 285 418 VÍTKOVICE MECHANIKA as 258 71 587 12 001 6 833 13 464 3 211-29 -
6 Related Parties Report for 2010 Order No Company name ID No Turnover from sales Turnover from purchases Receivables as of 31122010 Payables as of 31122010 419 VÍTKOVICE GEARWORKS as 258 77 933 13 687 0 183 4191 VÍTKOVICE MKV sro 263 25 985 4110 VÍTKOVICE Doprava, as 259 09 339 277 3 701 1 701 4111 VÍTKOVICE POWER ENGINEERING as 268 23 357 121 106 70 0 4112 VÍTKOVICE HARD POLSKA sp z oo 4113 VÍTKOVICE REALITY DEVELOPMENTS sro 277 86 749 1 344 36 41131 VTK SERVICE sro 285 90 953 4114 AIRCRAFT RENT as 278 00 458 4115 VÍTKOVICE NP as 278 45 206 4116 PRVNÍ VÍTKOVICKÁ PERSONÁLNÍ sro 483 92 758 4117 VTK SPECIAL as 289 82 495 41171 PA SPECIAL, as od 22 9 2010 284 20 161 4118 VÍTKOVICE HAMMERING as 278 07 088 4119 VL Servis sro od 24 5 2010 258 53 627 13 868 85 577 5 476 22 058 4120 VÍTKOVICE GREEN TECHNOLOGY as 286 06 540 4121 VÍTKOVICE IT SOLUTIONS as (do 4 11 2010 VÍTKOVICE CTM as) 286 06 582 41211 VÍTKOVICE ITS as od 26 11 2010 619 72 576 1 2 257 1 1 188 41212 NETPROSYS, sro od 26 11 2010 253 44 536 40 48 41213 MEDIUM SOFT as od 26 11 2010 253 77 132 412131 TAXNET, sro od 26 11 2010 253 59 924 412132 MEDIUM SOFT Slovakia, as od 26 11 2010 35 910 518 412133 MEDIUM SOFT - Polska SP z o o od 26 11 2010 4122 VÍTKOVICE RECYCLING as 277 81 291 1 007 36 4123 Spojené slévárny, spol s ro 602 02 505 304 4124 NETPROSYS, sro od 26 11 2010 253 44 536 4125 MEDIUM SOFT as od 26 11 2010 253 77 132 41251 TAXNET, sro od 26 11 2010 253 59 924 41252 MEDIUM SOFT Slovakia, as od 26 11 2010 35 910 518 41253 MEDIUM SOFT - Polska SP z o o od 26 11 2010 4126 VÍTKOVICE SCHREIER sro 476 69 454 4127 ARS VÍTKOVICE sro 253 65 401 12 4128 VÍTKOVICE - IOS sro 473 06 891 4129 Langfang Panwei Enviromental Engineering Co LTD 4130 Przedsiebiorstwo Budownictwa, Eksportu i Uslug Techniczno-Handlowych "BUDEH" spz o o 850017212 4131 idtax Česká republika, sro od 16 11 2010 285 88 487 4132 VITKOVICE INDIA POWER PRIVATE LIMITED od 30 7 2010 5 VÍTKOVICE ACCOUNTING as 278 21 323 322 3 772 52 741 Note: The amounts are exclusive of VAT - 30 -
7 Report of the Board of Directors on the Entrepreneurial Activities of VÍTKOVICE CYLINDERS as and on Its Assets in 2010 7 REPORT OF THE BOARD OF DIRECTORS on the Entrepreneurial Activities of VÍTKOVICE CYLINDERS as and on Its Assets in 2010 Incorporation; Ownership; Payment of Registered Capital VÍTKOVICE CYLINDERS as ID No 25 84 90 26 (hereafter referred to as the company ), is a joint stock company registered at the Commercial Register at the Regional Court of Ostrava, the Czech Republic It was incorporated through the transformation of VÍTKOVICE lahvárna spol s ro and was entered in the Commercial Register on 01/01/2000 under the new business name of VÍTKOVICE Lahvárna as On 17/08/2005 the business name was changed to VÍTKOVICE CYLINDERS as The company s headquarters are at Ostrava Vítkovice, Ruská 24/83, 706 00 Ostrava The company s core activities are the production, installation and repair of reserved pressure facilities and forges The company s 100% owner as of 31/12/2009 was VTK CYLINDRES sro The company s registered capital is CZK 500 000 000 It is fully paid and divided into shares Net Profits; Income Tax For the period of 1 January 2010 to 31 December 2010, the Company recorded a loss of CZK 15,769 thousand This economic result was caused by the significant increase in prices for the input raw materials, primarily billets and blocks, supplied by our strategic supplier Moravia Steel, as History of Tangible and Intangible Fixed Assets The company duly administered its assets in 2010 Tangible and intangible fixed assets totalling CZK 32,551 th were acquired The most important items include the machine tool center for CZK 7,000 th and the new line inventory with an acquisition price of CZK 16,716 th An advance payment for the acquisition of Leifeld EN 600/400 CNC was provided at the end of 2010 The total of tangible and intangible fixed assets was CZK 1,240,155 th net as of 31/12/2010 The assets are duly depreciated following the relevant depreciation plan In 2010, the Company created no provisions for the repair of tangible fixed assets For the repairs of assets the company outlaid in 2010 the amount of CZK 88,170 th, of which part was covered by reserves for repairs of assets created in the past period Inventory The company s inventory totalling CZK 386,581 th net relates especially to materials, products, merchandise and work in progress The increase in inventory balance compared to 31 December 2009 results primarily from the higher production volume, increased prices of input materials and the work-in-progress at the end of the year Adjustments in the amount of CZK 11,528 th were created for the inventory of work-in-progress, consisting mainly in unfinished steel cylinders, the realization price of which is lower than their accounting valuation Receivables Receivables are stated at their nominal amount The total receivables as of 31/12/2010 amounted to CZK 463,832 th, of which CZK 19,164 th relate to long term receivables payable to 01/2012 and CZK 444,668 th to short term receivables payable during 2011-31 -
7 Report of the Board of Directors on the Entrepreneurial Activities of VÍTKOVICE CYLINDERS as and on Its Assets in 2010 Receivables from purchasers were CZK 367,256 th and the company created adjustments to receivables from purchasers totalling CZK 6,283 th Receivables from purchasers past due are CZK 12,210 th (more than 180 days past due) and CZK 92,692 th (less than 180 days past due) History of Financial Investments The company s short term financial assets amounted to CZK 36,632 th as of 31/12/2010 The financial assets are in bank accounts and term deposits with Komercni banka, as, Raiffeisenbank as, Ceska sporitelna, as, HSBC Bank plc, UniCredit Bank Czech Republic, as and Citibank as The company is able to fulfil all of its financial obligations in due time - 32 -
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