basic data (thousands of czech crowns ‚000‘ kč)m&t project we cooperate with the enviros...
TRANSCRIPT
Výroční zpráva 2010 | Annual Report 2010 | 31
Basic Data
2008 2009 2010
Total performance 1 542 815 1 160 283 1 159 911
Revenues 1 218 682 999 831 1 008 587
Export 827 271 643 787 707 635
Profit before taxation 77 011 88 692 48 821
Profit after taxation 59 286 67 954 37 242
Total assets 1 534 993 1 384 524 1 411 593
Inventory 453 034 440 264 415 128
Receivables 304 259 193 353 302 410
Basic capital 757 400 757 400 757 400
Owned capital 1 006 196 878 130 963 619
Credits 247 784 59 200 132 939
Employees 824 673 624
Realized investments (without subsidy influence) 90 826 53 182 57 307
Basic Data (Thousands of Czech crowns ‚000‘ Kč)
32 | Výroční zpráva 2010 | Annual Report 2010
Introduction
the assessed year of 2010 was for our company, P-D Refractories CZ a.s. Velké Opatovice, compared to 2009, when the majority of industries were impacted by the worldwide economic crisis, a year with a slight growth. In several of our consumer areas the initial panic regarding possible and hardly predictable impacts of the crisis eased off, the redevelopment and cost saving measures adopted on the central level but mainly within individual companies started to fulfil their purpose and some areas even surpassed recession and returned to growth trends.
This growth can be well demonstrated in the steel production that is for our refractory industry the most important quantitatively but also the most determinant. Worldwide, the steel production saw growth of an excellent 15% in 2010 compared to 2009, in Europe 18.6% and in the EU even 25%. Even though it is naturally known that the main driver of the steel production growth is China where there was even no drop in 2009, the relatively strong growth index in other territories is a positive signal. This was also shown in many other consumer areas, such as cement, glass or aluminium production. The crisis, on the other hand, continued in ceramics which is closely linked to the construction industry.
What did this data describing basic features of an entrepreneurial environment mean specifically in 2010 for our company? To a certain extent we could still derive benefits from big projects which had started in the pre-crisis time. These are projects for the world-leading ArcelorMittal USA, for the aluminium manufacturer AD Kombinat Podgorica from Monte Negro, Moravian glassworks Vetropack Kyjov or French glass manufacturer Saint Gobain. Absolutely exceptional success is the continuous penetration of our silica in the Chinese glass markets. Another quite interesting phenomenon was a growth of small jobs for small and medium enterprises. This seems to be a result of a change in the behaviour of companies after the crisis; this may be a sign of a meticulous cost management.
Of course, all contracts that we have won so far are a result of an intensive and systematic effort of the sales department; the total volume of our sold products in the amount of 83,000 t
means a growth by more than 6%, compared to 2009, which equals our results back in 2004. Revenues were thus slightly over 1B CZK, index app. 101% , which confirms a significant price pressure, i.e. again a consequence from the crisis. This factor is reflected accordingly in the operations result in the amount of 87 mil. CZK, which meant index of 87%. Here I need to mention the unfavourable influence of the growth in material input prices and this increase could not be compensated even by cost savings in energy consumption where as part of the M&T project we cooperate with the Enviros company. We can evaluate the cost savings in remuneration highly positively – it exceeded 5% while the average wage grew by 6%. This is due to the continuation of the programme with the aim to increase productivity which we have been implementing since 2008. In 2010, the productivity increased by 8% compared to 2009.
Very positive operations results were influenced negatively by financial results where we were affected, as a company exporting 70% of our products, by the development of the CZK exchange rate so the total result for 2010 after taking into account financial results was 48,8M CZK.
Based on the aforementioned it is clear that we can consider results of our company as very positive. We were definitely pursuing our strategic objective, i.e. to continuously increase our competitiveness. We have seen significant changes even in areas that determine the competitiveness, i.e. an increase of quality of our production and labour productivity as well as cost efficiencies. Our good results are also proven by the awards we received in 2010. Within the 16th year of CZECH TOP 100 we achieved the “AAA” ČEKIA Stability Award rating. For the third time we were awarded “The best manufacturer of the year”, this time in the category of companies with over 150 employees.
We have achieved these results thanks to outstanding daily work and efforts to manage more and more challenging tasks; therefore, I would like to sincerely thank all our employees for their contribution and hard work in 2010.
I would also like to thank our business partners and cooperating companies for their help, support and collaboration.
Dear shareholders, dear business partners,
Ing. Ladislav KašparManaging Director of the Company
Výroční zpráva 2010 | Annual Report 2010 | 33
The History of the Company
The prospecting rights for the shaft mining of fireclay in Březinská basin, which later became a basic raw material for production of refractory products in Velké Opatovice, were granted in the year 1852. (Currently the company has only one mining operation – quarry Březinka, which started up in the year 1961).
In a process of gradual development these rights were acquired by a company owned by Mr. Messner and Mr. Pohl, who also financed the construction of the fireclay factory in Velké Opatovice, which, in the year 1892, launched the production of fireclay bricks primarily for the use of the Ostrava iron works.
The factory was gradually expanded and after general reconstruction in 1958–60 it took on the appearance of what is now known as the “Old Fireclay Plant”.
Between the years 1960-65 a new operation was established and given the name „New Fireclay Plant“ which still represents the current appearance of the Velké Opatovice facility.
The company expanded to Svitavy, mainly due to the establishment of silica production during the years 1981–85.
In the course of historical progress the inner organisational divisions of the company came about and also its connections
with larger entities. Moravské šamotové and lupkové závody were established during the post-war period, after the 1st January 1950 first as a national entreprise, later as a state enterprise and in the end as a joint stock company; since 2002 with the name “P-D Refractories CZ a.s. Velké Opatovice“.
The privatisation of the company was carried out in the form of coupon privatisation. At the end of the year 2000, the P-D Glas-und Feuerfestwerke Wetro GmbH Company bought the majority parcel of shares. At present our company, P-D Refractories CZ a.s., is a member of the trans-national group of manufacturers of refractory products, P-D Refractories, operating as part of the Preiss-Daimler Group, which is also developing business activities in other fields.
At present, the basic production units of the division are operating in Velké Opatovice (Old and New Fireclay Plant), Svitavy (“Dinaska” Silica Plant), Březina (“Anna” Burning Plant) and Březinka (Mining). The historic date was 15th October 2009 when deep mining in the Březinka mine was finished. The further mining continues in a re-opened quarry in the same area. To the divisions producing refractory materials are assigned another two units with different production programmes, namely the Service Division and the Landfill Division. The Service Division gradually becomes a general contractor for moulds for all the companies associated in the P-D Group producing refractory materials.
The History of the Company
Výroční zpráva 2010 | Annual Report 2010 | 35
2010 Assessment
In the assessed year of 2010 we reached the ten-year
history milestone of our joint-stock company being a
part of P-D Group. The share of the parent company,
P-D Industriegesellschaft mbH Puschwitz, remained at
89,9%, i.e. practically with no change for the past year
as the number of owned shares was increased only by
100 pieces, so at the end of the year the company held
650,653 shares. The remaining nominative shares are
held by the other 416 physical and legal entities; out
of those three shareholders acting in accordance own
9.94 % in total, the others hold only a small number of
shares; however no single individual’s shares exceed
0.6%.
This fact is a reason for no change in manufacturing-
technological and business cooperation with other
companies across the Group. This especially concerns
our supplies of steel and wooden moulds to affiliated
companies in Germany, representing almost one fourth
of the entire production; however, subcontracting
refractory materials is financially more important. Our
total performance to the Group was invoiced in the
total amount of 4,516K EUR in 2010. On the other hand,
1,116K EUR was charged back - 2/3 of it was purchasing
materials from our Slovenian affiliated company P-D
Kremen d.o.o.. There has been virtually no business
activity with our parent company.
There have not been any changes regarding holding
equity in our company. The 100% ownership of IZOKER
s.r.o. is still in place; however, this company has not
been functional since its establishment. On the other
hand, there were frequent business activities with the
aforementioned P-D Kremen d.o.o. Dolenje Mokro Polje
in which we own 50% of the business share and also in
2010, we were its biggest business partner.
Relations between our company and other companies are
described in detail in the Board of Directors’ report about
relationships among interconnected entities which forms
a part of this annual report.
The assessed year did not see any change in the
management of the joint-stock company which continues
to be run by 4 members of the Board of Directors and
controlled by the 3-member Advisory Board. In March
2010 the employee elections into the Advisory Board
were held: their results saw the re-election of Ing.
Vladislava Bomberová for another four-year-office term.
(more details concerning members of the Board of
Directors and Advisory Board can be found in the next
part of this annual report).
The company’s organisational structure has remained as
it was in 2009. There was also no change in managerial
positions. The only exception was to task Ing. Miroslav
Šteiner with running the entire Březinka site, i.e. Division
12 – Mining, as well as Division 5 – Waste site.
The organisational structure is closely linked to the staffing
in individual divisions and departments. In 2010 again,
the company management as well as individual divisions
mainly focused on increasing labour productivity. The
third year of this project saw a further positive progress.
Although production experienced increase in tonnage of
final products by 5.5%, the entire number of work hours
decreased by 60 thousand, i.e. by 5.5% and the need for
human labour per 1 tonne of products decreased from 9.71
to 8.96 hours. Overtime was almost eliminated and the
headcount dropped by 49, out of which 6 are technical-
administrative employees and 43 blue collar employees.
There were 79 women working for the company.
Regarding the company assets, there has been no financial
investment, i.e. acquisition of a business share in another
company or abstraction of any shares, owned in the past,
or abstraction of any part of the company. In the area of
properties there were some new plots acquired and in one
case even exchanged but all in insignificant volumes. The
important part, also from the ecology point of view, was
recultivation of the Březinka I waste site which even after
the recultivation stays in the ownership of the company so
that it can be continuously monitored.
1. Organisation and Property and Legal Areas
36 | Výroční zpráva 2010 | Annual Report 2010
2010 Assessment
Fireclay bricksAfter a significant drop in production and sales in 2009 in comparison to 2008, 2010 brought a slight revival. The entire sales for 2010 exceeded 30,000 t, which meant an increase of more than 18%; this volume takes us to the level of our 2005 results. From the point of view of external factors, it needs to be said that the lack of new projects in the critical consumer areas, i.e. steel, glass and aluminium production, continued. The exceptions were supplies of our fireclay and high alumina products for a hot blast stove in the Indiana Harbor steelworks USA, which belongs to the world-leading ArcelorMittal steelworks and from 2009 continuing project of hot blast stove repair by the same steel manufacturer in Hamilton, Canada. In the area of aluminium production we won a contract to construct an anode furnace for AD Kombinat Podgorica in Monte Negro. Regarding glass works, we need to mention fireclay supplies to repair the glass-making furnace for Vetropack Kyjev and also for Saint Gobain in Bad Wurzach. The supply of fireclay bricks for coke ovens to repair a coke battery No. 12 for Třinecké železárny a.s. Třinec (ironworks) was quite significant as well. Italian company Unistara remained a traditionally strong customer. A stable level of production and sales of stove fireclay, which is a key product of our D01 Old Fireclay Plant, is encouraging as well. Another positive trend is a development of customer base in cement industry, especially thanks to a higher use of our alkali-resistant fireclay. We were pleased with the development in supplies of insulating bricks, especially through our affiliated companies.
Silica bricksThese products saw very good results in production and sales. In comparison with 2009, we achieved growth of 14.5% and in sales growth exceeded even 21%. The main contributors to this were supplies of silica bricks for domestic repair projects of coke batteries in TŽ Třinec ironworks and OKK Ostrava. Also, silica bricks for glass works reached very interesting volumes and growth: here we need to mention our success in the Chinese
market where we supplied our silica bricks to 4 glass oven projects. On the other hand, recession continued with our Russian glassmakers; in addition, our traditional customer Saint Gobain Packaging has not re-started its development activities yet.
Magnetite bricksThroughout the last year, a declining trend unfortunately continued – in sales as well as in production. This is due to the real current need for this product which, as a result of energy prices, is decreasing. On the other hand, we keep expanding the portfolio of our customers in the European market and maintaining the portfolio in Japan.
Ceramic chimney pipesThis product has been developing most dynamically in the past years. Sales increased by more than 20%; this product is crucial from the work load point of view, not only for our D03 Dinaska (Silica Plant) Svitavy but also for D01 Old Fireclay Plant. In addition, as this product is intended for consumer markets, it is possible to plan its production to ensure the most balanced use of our capacities.
Burned claystonesThanks to growth in the production of fireclay bricks in D02 New Fireclay Plant, increased volumes of production and sales by 9 % and 13 % respectively were reached. Supplies for other customers, domestic or foreign, remained roughly on the same level.
Other productsIn the area of unshaped products, besides mastics and mortars manufactured in D06 Anna Burning Plant Březina, we saw sales reduced by 15% in total; however, the biggest drop was in castables, almost by half. Refractory clays remained on an almost similar production and sales level. Exceptional one-off distribution of clay in the amount exceeding 22,000 t was realised to seal our waste site run by D05 Waste Site Březinka.
2. Production and Sales
Výroční zpráva 2010 | Annual Report 2010 | 37
2010 Assessment
3. Quality Management Control of Products
In 2010 our company further expanded our implemented
Integrated Management System (IMS). Its historic
and fundamental part related to customer service is
a certified QMS according to the EN ISO 9001:2008
norm. This QMS was successfully, with no issues,
re-certified last year. As a result of this we acquired CQS
and IQNet certificates for the entire production line of our
company. A separate part of the system certification is
a certification of the production management of chimney
pipes according to the EN 1457:19999/A1:2002 norm
which was again successfully monitored last year.
Our company is a customer-oriented company. Meeting
customer requirements fully while considering the
environment and health and safety of all present
employees, not only ours, is a basic attribute of the
way our company operates. This is expressed in the
valid IMS Policy which is reflected every year in specific
and measurable IMS objectives. Significant attention is
dedicated to assessing customer satisfaction.
In order to validate our products as well as efficiency
of all our processes, our company has all necessary
resources that consist of a meticulous final inspection,
sufficient capacities and technology for testing, centrally
managed metrology, normalisation and technical
normalisation service. All product groups were also
successfully subject to the product certification in
compliance with Act No. 22/1997 Coll. All products
are equipped with a Safety Certificate in accordance
with the Regulations of the European Parliament and
Council (EC) No. 1907/2006 (REACH) and protocols about
radionuclide safety. As a standard, all norm or required
quality certificates are being issued.
We still regard the area of technology development,
progress and innovation as one of our greatest advantages.
The new products that need to be mentioned are the
completion of the development of ramming mass on the
basis of fused silica (KSD 96 / 6 and KSD 99 / 6) and
shaped pieces (KS98F), manufactured by using the vibro-
cast technology. A significant development continues in
innovation of insulating materials produced by the
dry press process (SL10C150, SL10P135, SL6C130,
SL6P-125, SL8C-135), and also produced by the vibro-
cast technology (A90FLK). We developed materials
for chemical industry (A90KP and A90TK) including
unshaped refractory materials (Procast ZBU155-25SiC/6,
Proterm ZBL 170-1,5/5, Rudokit SILATERM, Rudomal
HAFT and Rudomal HAFT 90).
A very important moment for QMS and technology
development is an almost finalised investment grant
programme Potenciál, the objective of which is to
increase capacity of laboratories in our company.
38 | Výroční zpráva 2010 | Annual Report 2010
2010 Assessment
The entire amount of investments in the last year was
57,307K CZK.
This comprised of:
Supplier’s investments 37,472K CZK
Moulds for own usage 17,509K CZK
Others 2,326K CZK
The most important investments were the following:
• Modernisation of the shuttle kiln
in Svitavy as part of the EKOENERGIE II
grant programme 12,802K CZK
• Equipping laboratories and development
departments with lab appliances as part
of the POTENCIÁL grant programme 5,161K CZK
• Raw materials preparation area:
– transferring the dispensary line into the
HARD hall and expanding by mixing line 8,791K CZK
– partial modernisation of scaling system
in the NŠ hall 1,914K CZK
In 2010 we started ‘Modernisation of the tunnel kiln No. 4’,
an important event as part of the EKOENERGIE II grant
programme.
The emission verification confirmed the CO2 production in the
amount of 24,145 t.
All realised activities complied with the articles approved by
the Advisory Board of the company.
5. Technical and investment development
4. Health and safety
In the previous period an average number of employees
with health insurance reached 625 in our company.
Illnesses and injuries have led to the following sick leave
data (in calendar days):
A number of sick leaves
(last year 257) total 206
Due to illness total 162
Due to other injuries total 19
Due to work injury total 25
A number of calendar days of sick leave
(last year 11,973) total 9,381
Due to illness total 6,479
Due to other injuries total 1,266
Due to work injury total 1,636
The list clearly shows a significant decrease in a number of
work injuries: the 2010/2009 index is 0.69.
Causes of work injuries:
•Handlingandconsequentinjurycausedbyaload
•Contactwithmachinery
•Fallingwhenwalking
•Fallfromheights
•Straincausedbyphysicalwork
All incidents have been investigated, rectifying measures
have been put into place and the affected persons have
been compensated. In 2010, the organisation was resolving
the issue of work hygiene; based on the executed new
measurements, an updated “Job Categorisation’ for the
Velké Opatovice region will be set up in the next few days.
Výroční zpráva 2010 | Annual Report 2010 | 39
2010 Assessment
6. Economy and Finance
While 2009 brought, as a result of the worldwide crisis, decline in sales and consequently production and the historically best result was achieved due to drastic cost cuts, in 2010 this trend stopped and turned around. Although the crisis implications were still felt, we achieved almost 8% growth in the tonnage of sold products and 5.5% growth in the final production. As a result of lower prices, in particular due to the exchange rate of the Czech Crown, the turnover increased, i.e. its revenues for the sold products and services grew only by less than 1%. This increase by approximately 9M CZK took us back to the turnover level of one billion Czech Crowns.
As opposed to the previous year we decreased our stock reserves of finished and semi-finished production (by 20.9M CZK), which is positive although it lowers the declared company profit.
The overall revenues of the company also contain, as always, the revenue from selling assets and material in the amount of 18.1M CZK; this concerns predominantly sold palettes with supplied products. Other operations revenue is dominated by assigning CO2 permits (10.0M CZK), collected fees for waste disposal (9.4M CZK) and inventory surplus in the amount of 3.1M CZK linked only to the swap in mobile stock items and having a similar cost counter-entry in deficiencies. An exceptional amount in the 2010 revenues is indemnification by insurance companies for an insurance event (10.0M CZK) that was after a longer period of clarification closed and even this amount has a cost counter-entry represented by the damage compensation paid by us.
Financial revenues show mainly the exchange rate profits in the total amount of 14.1M CZK, this time significantly lower than in previous years as especially provisory operations proved, due to the exchange rate development, unprofitable.2010 also recorded a profit as a result of transferring the profit from the Slovenian affiliated branch P-D Kremen Slovinsko in the amount of 2,506K CZK.
The structure of expenses is stable in a long term; however, in 2010 we saw a growth in material consumption (by 14%). This is a result of an increase in prices of raw materials, such as commodities from monopoly suppliers but also a must to execute previously postponed repairs or purchases that could not be postponed anymore. Fortunately, a similar trend was not seen when it comes to energy costs: its total increase was
3% but higher prices were balanced by savings in specific energy consumption areas.
An exceptional increase in service expenses is caused by one-off event – a recultivation of the Březinka I waste site, mostly executed by a third party for 42M CZK. This, however, did not impact the result as it was covered by a financial reserve that had been created over a long period of time. On the other hand, it was beneficial to use our own clay from the overburden, not suitable for production, for this specific purpose.
We continued successfully in the project aiming to increase of labour productivity, which brought further 49 redundancies, elimination of overtime and decrease in sick leave, decrease in personal expenses in the amount exceeding 12 million CZK, i.e. by 4.5 % even when production increased by 5.5 %. The average monthly income (excluding managers) increased to 22,938 CZK, i.e. 106.2 % compared to 2009.
A high negative value in the status of reserves in the 2010 annual balance sheet is exceptional. The reason for this is the aforementioned use of the reserves to recultivate the waste site that exceeds the creation of reserves for the waste site II many times where we, on the other hand, struggle with its reduced use and therefore lower payments to the bank account established for this purpose.
The crucial item in other operations costs is fees for waste disposal (9.9M CZK) and also used CO2 permits (7.0M CZK), deficiencies related to the material entered into the books – see the mentioned swap of stock items in the revenues – especially substrates (2.4M CZK). Damage compensation (10.6M CZK) is exceptional and one-off this time - that was a result of a long-term insurance event that was resolved by insurance companies for the benefit of the company.
A part of the financial expenses shows a significant decrease in bank interests (4.6M CZK, i.e. to 60% compared to the previous year) related to the amount of drawn loans and with the historically lowest bank interest rates. However, the bank charges were higher.The highest amounts are losses due to the exchange rate that in 2010 exceeded the exchange rate profit for the first time. The exchange rate loss from usual business activities (17.6M CZK) was lower than in the previous year but the main
40 | Výroční zpráva 2010 | Annual Report 2010
2010 Assessment
impact came from the losses resulting from the past provisory operations (24.5M CZK).
A recent more efficient investment approach has been a reason for decreasing book depreciation by more than 10% compared to 2009.
Our 2010 results show a profit in the amount of 48,821K CZK; there is a reserve for income tax in the amount of 11,579K CZK so the company net profit to be distributed is 37,242K CZK.
Regarding the company property, the balance sum was increased by 27M CZK. In terms of assets, thanks to depreciation being higher than investment, the long-term investment assets declined; the entire stock dropped by 25M CZK in all categories. Even the financial assets dropped by 42M CZK, especially due to using the financial reserve for the waste site. On the other hand, a massive growth was seen in case of claims which increased by 43.6M CZK, as a result of business activities, against the group companies by 64.5M CZK, against the state by 3.2M CZK and only claims from provided advance payments to suppliers decreased by 2.6M CZK. Out of the total amount of claims, 38M CZK is past the payment deadline on the date of the closure of accounts; however, in 2010, there was no significant debt uncollectible.
Regarding expenses for future periods there is a time differentiation in expenses linked to quarry overburden.
In the area of liabilities – resources financing assets – it is necessary to point out the second year of being charged an obligation as result of negative evaluation of financial derivates (counter-value is with a minus sign charged in capital funds). The hypothetical character of these items is demonstrated by their decrease by 88.1M CZK compared to the last year.
Only a slight increase was seen in obligations to suppliers (by 5.9M CZK); during the last year all payments were realised within agreed payment deadlines and the amount recorded as obligations past the deadline is linked to administrative and technical aspects – clarifying discrepancies in deliveries, accumulation of sums for the subsequent entry into the books and marginally, even a dissolution of a creditor’s company.
The obligation to employees increased (by 5.8M CZK), represented by their increased deposits in the internal savings company. Here we need to count with a reduction in this external financial source as a savings bank cannot, due to
legal reasons, continue to exist after 30.4.2011 and surely not the entire amount of the current deposits on our employees’ accounts will be subject to the employee fixed loans that were offered to employees.
A higher obligation (by 6M CZK) to the state is linked to the CO2 emission permits that have not been cleared by the date of the closure of accounts.
Problem-free financing of operations as well as investment needs of the company was secured by bank loans. These were increased from the historic minimum at the beginning of 2010 gradually by 73.7M CZK, while investment loans, thanks to regular payments, decreased by 9.6M CZK.
Regarding other obligations not included in the profit and loss statement, the company has a record of 11 open lease contracts at the end of 2010. After paying the lease payments for hydraulic presses Sacmi, the total payments will reach the amount of 5,7M CZK.
Another obligation (without the exact calculation of the amount) outside the profit and loss statement can be regarded the future duty to destroy the tar phenol reservoir in the clay bed, duty to recultivate the plots after previous excavation and a waste site run by us and also maintenance of adjustment of the mine water leak in the former mining area of Hřebeč and now at the closed Březinka mine.
The company is not charged with any obligation due to providing warranty for third parties and does not record any other significant obligations, apart from the mentioned ones, resulting from any concluded business or other contracts.
For the entire year of 2010, the company has been demonstrating a stable financial situation, having no problems with liquidity or with paying all its financial obligations.
Despite the decline in the profit compared to the previous year and therefore decline in the profitability indicators, 2010 can be considered as one of the best years in the modern history of a joint-stock company.
Detailed data from the annual closure of accounts can be found in the other part of this annual report. More detailed comments, compliant with legal requirements, are provided in the appendix to the annual closure of accounts which forms an integral part of the annual report and can be viewed at the Secretariat of the Directorate of the joint-stock company.
Výroční zpráva 2010 | Annual Report 2010 | 41
Development for 2011
From the point of view of the sales volumes and revenues,
2010 put the decline to a standstill and brought even a slight
increase.
When preparing the 2011 plan we didn’t assume any
extraordinary change to the existing trends. Somehow
optimistic, we expect growth in the sales of fireclay and
silica bricks as well as a slight growth in the area of
unshaped products (mortars, mastics, castables); we also
plan exceptionally higher sales of chimney pipes and only
in case of thermal magnetite bricks we reconcile with
maintaining the current trends.
Although we expect to exceed the sales by 6,380 tonnes
compared to 2010, the pressure of the competition regarding
sales prices and especially a further decline in the export
effectiveness, thanks to the Czech Crown becoming stronger,
allows us to plan only a very small revenue growth. By
mobilising our reserves further, both in raw materials and
energy consumption, and in personnel and other costs, we
aim to grow the profit by approximately 20%.
When preparing our 2011 business plan, in individual areas
of our business we considered the following facts and
defined the below mentioned objectives:
In 2011 we will complete the 10-year period during which
our company has represented the majority of Preiss-Daimler
Group. We will continue to cooperate, more efficiently if
possible, with the three German manufacturers of refractory
materials within P-D Refractories GmbH.
We do not expect any further major changes in the internal
organisational structure of the company after streamlining it
in 2009.
The Slovenian affiliated company, P-D Kremen, in which our
joint-stock company has a 50% share, has been continuously
profitable for several years. Also in 2011 we will be its main
customer (app. 45 % of the total production of quarried
and processed materials), so rightly we expect a dividend
payment in the same amount as in 2010.
As in the previous years, the company and its management
will mainly focus on sales. We continue to be aware of
continuously stronger competitive cheap products from
Asia (China, India) and Eastern Europe (Russia, Ukraine,
Poland,…) in all world markets.
In the sales sectors such as metallurgy, coking industry,
aluminium production and cement and lime works we do
not expect any boom; however, we expect revival in the
glass industry. In case of ceramic chimney pipes we plan a
substantial growth.
Compared to the previous two years when there were big
tonnage projects in our country, we count on partial decline
in the domestic sales that will be based on a higher number
of smaller orders.
We must maintain high quality of our production despite the
pressure on all kinds of costs. This will be ensured by the
Integrated Management System (IMS), recently retained,
which in 2011 will be followed as per the certification plan.
When organising our production, our aim is to use synergies
based on cooperation options among individual divisions.
This is not only about transferring labour forces but about
a purposeful placement of individual pieces of work into
individual divisions and their mutual substitutability.
The important area, in which we need to continue to seek
opportunities for improvement, is initial raw materials and
supplies. Our own supplies with our own internal prices and
purchases from our Slovenian affiliated company will remain
the same in our plan. We need to count with an increase of
2 – 3 % by domestic suppliers; high alumina supplies are
said to increase by 5%, exceptionally even by 8%.
So we will continue to follow (and this concerns also all other
auxiliary supplies, packaging and other purchases including
services) a rigorous cost-efficient regime which has been
implemented during the recent crisis period.
Another important cost item in our sector is energy. Mainly
in case of natural gas the market has been unpredictable
in the past years. A certain solution, for the purposes of
planning, is a fixed price. The fixed price is defined in case
of app. 60% of a predicted annual consumption and such
fixed prices represent a price drop by 12% compared to
the average price in 2010. The purchased electric energy is
also 10% lower in price than in the previous year as in the
end, the Czech Republic decided not to transfer the entire
Basic starting points and objectives of 2011
42 | Výroční zpráva 2010 | Annual Report 2010
Development for 2011
electrovoltaic costs to consumers. The electric energy price
is fixed throughout the year for the entire consumption.
Water is also considered as energy. While drinking water
was finally secured from our own sources - at the end of
2010 we decreased our expenses in this area to one third,
the main impact on our water expenses in 2011 will have
the working sewage plant. This will totally eliminate costs
of drinking as well as industrial water.
The investment area, besides the mentioned sewage plant,
is again represented mainly by events which we can get
grants for – especially big events. The entire range of
smaller purchases has then a character of the current
machinery renovation and replacement; newly, we’d like to
focus more on the possibility to introduce robots.
An independent section in the investment area (although
we will try to include it in our “expenses”) is completed
implementation of SAP system. This task will impact
practically all work areas of our company as it concerns
modules of production, logistics – sales, purchasing and
also quality, mould production and maintenance.
Besides investment, planning and management of active
assets impacts company liquidity. We will continue to
try to maintain the volume of stock. It is necessary that
any possible increase of some items ensuring smooth
production and maintenance was accompanied by
decreasing such stock items that have a low turnover or
are not selling well.
The other important part of active assets is claims. Here we
cannot ease up on our set criteria the basis of which is claim
insurance and a personal responsibility of everyone who is
responsible for releasing our products into distribution.
In 2011 financing of the company will continue through
cooperation with three banks with which we have set a
sufficient loan framework and which are willing to continue
to finance our investment needs under very acceptable
interest conditions.
The entire business plan is based on the currently available
prognosis and published professional opinions regarding
the development of the Czech Crown exchange rate. Based
on them, the exchange rate should be 24.00 CZK/€. In case
this development happens there will be no repetition of the
exchange rate loss in provisory activities as in 2010. We
cannot, however, expect any significant profits from the
exchange rate.
We plan feasible savings in the area of services. Our lease
instalments for the financially demanding purchase of
hydraulic presses will gradually cease and even consultancy
services should decrease. We plan on reducing planned
funds for repairs done by third parties.
We will continue to focus on the implemented project
related to increasing labour productivity. We cannot expect
such significant volumes of savings as in the first years
of the project but it is necessary to plan meticulously
and manage deployment of human resources in all work
areas including implementing all elements in the defined
personnel process.
In the area of training and development, we cannot rely on
continuation of the grant programme “Develop Yourselves”;
however, employee development will be partially ensured
by a project within the EDUCA operations programme,
organised by the SILIS company.
In 2011 a new Collective Agreement will come into
effect which is being prepared for another four years. Its
main content is, besides a social programme, income
development and all rules for personal and material
engagement of employees. The basic principle of the
income development will be also maintained in 2011, i.e.
a guaranteed growth by 2% in an average income with
an increase option depending on the labour productivity
achieved. The objective of new company pay legislation is
to strengthen the links between the income and individual
results.
The global objective and motto of the new Collective
Agreement for 2011 -2014 is to maintain a social contract
while continuously supporting our employee teams, in the
process of achieving all set goals of the company, and
creating a positive and creative atmosphere in all work
areas in the joint-stock company.
Výroční zpráva 2010 | Annual Report 2010 | 43
Development for 2011
D 01 Old Fireclay Plant 0111 Standard fireclay 500131 Stove fireclay 4 0000135 Würth splits 4000161 Insulating fireclay 300 Fireclay bricks in total 4 750 0611 Chimney pipes 4 000 0811 Standard mortars 9000821 Acid and coke mortars 8500911 Mastics 400 Castables in total 1 500 D 02 New Fireclay Plant 0111 Standard fireclay 14 5000121 Fireclay from A111, mulcoa 3 0000122 Bottom blocks 1000131 Stove fireclay 2000132 Cordierite fireclay 1000133 Acid-resistant fireclay 2000138 Market fireclay 1 0000139 Alkali resistant fireclay 1 1000141 Acid fireclay 1 1000161 Insulating fireclay 9000181 Fireclay with low Al2O3 1 2000211 Corrundum products 2000212 Bauxite products 400
0213 Andalusite products 2 5000221 Mullite products 120 Fireclay and high alumina bricks in total 26 620 0511 Magnetite 15 000 Feeder ceramics 4001211 Refractory clays (grinded) 300
D 03 Dinaska (Silica Plant) 0311 Silica for glass industry 7 1000314 Silica for metallurgy 3 1000315 Silica for coke-making industry 3 4100321 Insulating silica 500 Silica bricks in total 16 610 0611 Chimney pipes 8 000
D 06 Anna Burning Plant 0811 Standard mortar 6001211 Refractory clays 3 5001311 Burned claystones 18 000
D 12 Mining 1211 Refractory clays 12 000
Volumes of production for sales in technical units per individual production divisions
Investment plan 2011
Activity Total Out of which grant of After grant deductionThousands CZK Thousands CZK Thousands CZK
modernisation of the tunnel furnace No. 1
(the remaining 22 mil. in 2012)
2400 960 1440
II phase of HARD hall - clay silos 5 000 5 000
modernisation of chamber furnace – bricking up 20 000 5 200 14 800
potential - grant, completion (diffraction) 5 500 2 200 3 300
production line for chimney pipes 5 500 5 500
robot to insert chimney pipes into UPD 2 000 2 000
and other
44 | Výroční zpráva 2010 | Annual Report 2010
Organizational Structure (status to 1. 1. 2011)
Division 01 – Old plant Velké Opatovice
Production: fireclay bricks, insulating, mastics, refractory mortars and castables.
Director: Lubomír DomanskýTel. No: 00420 516 493 212Fax No: 00420 516 493 769
Division 05 – DumpBřezinka
Decking solid communal and industrial wastes.
Director: Ing. Miroslav SteinerTel. No: 00420 461 321 181Fax No: 00420 461 321 136
Division 06 – Březina Burning Březina
Primary, dressing of raw materials, including firing.
Director: Pavel SiažíkTel. No: 00420 461 357 330Fax No: 00420 461 321 136
Department 09 – Technical and Investment Velké Opatovice
Development of new products, technical development, managing and control of technological
progress in production. Social services.
Manager: Ing. Pavel OndraTel. No: 00420 516 493 229Fax No: 00420 516 493 239
Division 02 – New plant Velké Opatovice
Production:fireclay bricks, magnetite bricks,
high – alumina bricks.
Director: Ing. Vladislava BomberováTel. No: 00420 516 493 217Fax No: 00420 516 493 776
Managing Director
Ing. Ladislav KašparTel. No: 00420 516 477 320, Fax No: 00420 516 477 334
Department 07 – SalesVelké Opatovice
Marketing and sales activities for whole joint stock company.
Manager: Ing. Stanislav DvořákTel. No: 00420 516 493 411Fax No: 00420 516 477 338
Department 11 – Economic- administrative Velké Opatovice
Economies, financing, informative system, informative technology. Personalistics,
wage system, organisation of legal activities, social services.
Director: Ing. Tomáš KožoušekTel. No: 00420 516 493 231Fax No: 00420 516 477 334
Division 03 – Dinaska Svitavy
Production:silica bricks, magnesite, chimney pipes
and fireclay products.
Director: Ing. František HloušekTel. No: 00420 461 579 134Fax No: 00420 461 530 595
Department 08 – Quality and Development Velké Opatovice
Managing and control of quality in whole joint stock company.
Manager: Ing. Milan MazuraTel. No: 00420 516 493 781Fax No: 00420 516 477 338
Extraction fireproof claystoneand aggregate.
Director: Ing. Miroslav SteinerTel. No: 00420 461 321 181Fax No: 00420 461 321 136
Division 04 – Service Svitavy
Production: moulds, maintenance and purchasing of spare parts and subsidiaries materials.
Investment development and care of substantial investment possession.
Director: Ing. Jiří KynclTel. No: 00420 461 579 142Fax No: 00420 461 540 088
Division 12 – ExtractionsBřezinka
Výroční zpráva 2010 | Annual Report 2010 | 45
Authorities
Division 01 – Old plant Velké Opatovice
Production: fireclay bricks, insulating, mastics, refractory mortars and castables.
Director: Lubomír DomanskýTel. No: 00420 516 493 212Fax No: 00420 516 493 769
Division 05 – DumpBřezinka
Decking solid communal and industrial wastes.
Director: Ing. Miroslav SteinerTel. No: 00420 461 321 181Fax No: 00420 461 321 136
Division 06 – Březina Burning Březina
Primary, dressing of raw materials, including firing.
Director: Pavel SiažíkTel. No: 00420 461 357 330Fax No: 00420 461 321 136
Department 09 – Technical and Investment Velké Opatovice
Development of new products, technical development, managing and control of technological
progress in production. Social services.
Manager: Ing. Pavel OndraTel. No: 00420 516 493 229Fax No: 00420 516 493 239
Division 02 – New plant Velké Opatovice
Production:fireclay bricks, magnetite bricks,
high – alumina bricks.
Director: Ing. Vladislava BomberováTel. No: 00420 516 493 217Fax No: 00420 516 493 776
Managing Director
Ing. Ladislav KašparTel. No: 00420 516 477 320, Fax No: 00420 516 477 334
Department 07 – SalesVelké Opatovice
Marketing and sales activities for whole joint stock company.
Manager: Ing. Stanislav DvořákTel. No: 00420 516 493 411Fax No: 00420 516 477 338
Department 11 – Economic- administrative Velké Opatovice
Economies, financing, informative system, informative technology. Personalistics,
wage system, organisation of legal activities, social services.
Director: Ing. Tomáš KožoušekTel. No: 00420 516 493 231Fax No: 00420 516 477 334
Division 03 – Dinaska Svitavy
Production:silica bricks, magnesite, chimney pipes
and fireclay products.
Director: Ing. František HloušekTel. No: 00420 461 579 134Fax No: 00420 461 530 595
Department 08 – Quality and Development Velké Opatovice
Managing and control of quality in whole joint stock company.
Manager: Ing. Milan MazuraTel. No: 00420 516 493 781Fax No: 00420 516 477 338
Extraction fireproof claystoneand aggregate.
Director: Ing. Miroslav SteinerTel. No: 00420 461 321 181Fax No: 00420 461 321 136
Division 04 – Service Svitavy
Production: moulds, maintenance and purchasing of spare parts and subsidiaries materials.
Investment development and care of substantial investment possession.
Director: Ing. Jiří KynclTel. No: 00420 461 579 142Fax No: 00420 461 540 088
Division 12 – ExtractionsBřezinka
Board of Directors
Chairman: Ing. Ladislav Kašpar
Vice Chairman: Dipl. Ing. Hans-Bernhard Führ
Member: Stefan Alexander Preiss-Daimler
Member: Ing. Tomáš Kožoušek
Supervisory Board
Chairman: Heinz-Jürgen Preiss-Daimler
Vice Chairman: Klaus Friedrich Kaiser
Member: Ing. Vladislava Bomberová
46 | Výroční zpráva 2010 | Annual Report 2010
Report on Relations among Interconnected Subjects
2010, the assessed year, did not bring any change that would concern the relationship between the controlled entity, P-D Refractories CZ a.s. Velké Opatovice, and its controlling entity or entities controlled by the same entity. The majority of shares is still held by P-D Industriegesellschaft mbH Puschwitz which is partially directly and partially through the holding company P-D Management Industries Technologies GmbH Wilsdruf, owned by Mr. Jürgen Preiss-Daimler.
The fact is, however, that there is no production, technical or business cooperation on the part of the controlled entity.
The cooperation, on the other hand, continued to develop very intensively between manufacturers of refractory materials in the Group that were integrated in Germany in 2008 into one company, P-D Refractories GmbH Puschwitz. Preiss-Daimler
Refractories SA/NV Saint Ghislain in Belgium, cooperating originally, entered into a bankrupt process that finished in 2010 and this company was excluded from P-D Group.
Other subjects within P-D Group, between which and our company reciprocal transaction were carried out in 2010, without them being related partners as defined in § 66a of the Commercial Register, are:
P-D Kremen d.o.o. registered in Dolenje Mokro Pole 40, 8310 Šentjernej, Slovenia.
P-D Refractories CZ a.s. has a 50% share in this company, which is both a mining operation and a supplier of raw material – quartzite – for our company, as well as some other P-D Group companies. During 2010 there were mainly supplies of the mentioned raw material carried out, in the
Board of Directors Report on P-D Refractories CZ a.s. Velké Opatovice According to the provision § 66a, Para. 9 of the Commercial Code (Report on relations among interconnected subjects)
Controlling entity: P-D Industriegesellschaft mbH Registered at: Wetro-Siedlung 13-22, 02699 Puschwitz, Germany Identification Number: HRB 1052
Controlled entity: P-D Refractories CZ a.s. Registered at: Nádražní 218, 679 63 Velké Opatovice, Czech Republic Identification Number: CZ16343409
Business share of the controlling entity in the controlled entity: 85.91 %
Additional entities controlled by the same controlling entity: 1. P-D Refractories GmbH Wetro-Siedlung 13-22, 02699 Puschwitz, Germany holding a share of 52.63 %
2. P-D Interglas Technologies S.A. Battice, Belgium, holding a share of 100.00 %
3. P-D LAPP Systems GmbH Wilsdruff, Germany, holding a share of 20.00 %
The formerly owned minor shares in three Chinese companies were sold by the controlling entity in the course of the assessed year of 2010.
Other member companies within the group: none (cooperating with the controlled entity)
Výroční zpráva 2010 | Annual Report 2010 | 47
Report on Relations among Interconnected Subjects
total volume of 699,379.20 €. The supplies were carried out based on standard orders and based on pricing and other terms identical with the terms for other trading partners of P-D Kremen d.o.o.In 2010 P-D Refractories CZ a.s. received dividends in the amount of 100,000 Euro as part of the profit distribution.
P-D Interglas Technologies A.G. Erbach, Germany, in whose headquarter there is a data centre that has provided technological and other related services to all companies in the Group since the transition to a unified SAP information system, which also concerns our company. Overall transactions in relation to our company accounted for 86,081.55 €.
P-D Management Industries Technologies GmbH registered in Wilsdruff, Germany. This company is an overarching body, representing the organisational-administrative centre of P-D Group and providing support, based on concluded contracts, to all companies within the Group. From the full range of activities defined in our contract (concluded on 1.7.2005), during the assessed year of 2010, the prevailing primary activities were in the IT area; additionally, coordination of marketing activities (fairs, etc.) and activities related to consolidation of the manner of transmitting statements within the Group. A significant contribution for our company was organising coordination meetings, of the top management of companies as well as professional groups and teams appointed for the area sales as per consumer sectors, technological development, quality control and purchasing.
The financial performance of our company to the Group centre was, in accordance with the concluded contract, including re-billing for using SAP licenses 253,317.92 €.
As in previous years, supplies between the four manufacturers of refractory materials including our company represented significant reciprocal transactions within the Group. Factually, these were supplies of steel and wooden or plastic moulds of our production and also mutual subcontracting of refractory materials in case of larger projects, for which the supplier from P-D Group subcontracted, for various, mainly capacity reasons, part of the contract to its affiliated company.
In regards to the centralised production of moulds by our company, it gradually increased its importance in terms of the volume and became a permanent part of our production
activities next to our main business activity. After decline in 2009 the demand for moulds on the part of the affiliated companies increased, which is documented by the following overview:
Number of worked parts 2009 2010Total 13,036 16,732- of which for companies within the Group 2,796 2,923- P-D Industries GmbH Wetro 1,482 1,072- P-D refractories Dr.C.Otto Bochum 1,280 1,851- Preiss-Daimler refractories SA
Saint Ghislain 34 0
The total financial volume (billing) within the Group in 2010 was from the point of view of the controlled entity – P-D Refractories CZ a.s. the following:
Obligation of the controlled entity- To the controlling entity
(P-D Industriegesellschaft mbH) 7,252.56 €- To the other companies
within P-D Group 4,508,795.52 €
Obligations to the controlled entity- from the controlling entity
(P-D Industriegesellschaft mbH) 0.00 €- from the other companies
within P-D Group 1,116,257.11 € - out of which from the affiliated
company P-D Kremen 699,379.20 €
All mutual supplies, both in the area of raw materials and the subcontracting of finished products as well as supplies of moulds, are conducted on the basis of standard commercial terms and conditions. Prices are set according to the same methodology as for the other trading partners, whereby the calculations are based on production costs supplemented by overhead costs and profit margins. Payment deadline is set uniformly within the entire P-D Group at 90 days. In case of payment in delay there is a uniform interest rate of 4% p.a., through which the controlled entity charged the penalty to the other Group companies at the total amount of 46,676.03 EUR.
At the end of the fiscal period – 2010 – all claims of the controlled entity against the related entities accounted for 3,865,522.34 EUR.
48 | Výroční zpráva 2010 | Annual Report 2010
Report on Relations among Interconnected Subjects
On the part of the controlled entity no detriment occurred
in connection to the fulfilment of mutual obligations within
P-D Group.
All documents relating to supplies within the Group are
stored in the following departments:
– department 07 Sales supplies of raw materials
and finished products
– division 04 Service supplies of moulds
– department 11 – MTZ (or 07) purchase of materials and
subcontracting (of goods)
Strategic supervisory and management activity of the
controlling entity is undertaken at the controlled entity by
members of the Board of the company. One member of the
four-member Board at the controlled entity is Mr. Hans-
Bernhard Führ – a representative of the controlling entity and
also Mr. Stefan Preiss-Daimler – a representative of another
company within the Group and at the same time a son of the
owner of the controlling entity.
Members of the three-member Advisory Board are Mr.
Jürgen Preiss-Daimler – an owner not only of the controlling
entity but the entire Group (in some companies a co-owner)
and Mr. Klaus Kaiser – a solicitor of the Group.
Personnel costs of the representatives of the controlling
entity associated with these positions comprised, for the
assessed year, in total 2,423,609.00 CZK; directors’ fees
amounted to 1,847,917.00 CZK.
This report of the Board is, in accordance with the law,
subject to discussion and approval by the Advisory Board of
the controlled entity; it is a part of the annual report of the
company for 2010 and is kept, inter alia, in the files at the
Regional Court in Brno.
On behalf of the Board of Directors of P-D Refractories CZ a.s.: Ing. Tomáš Kožoušek
Member of the Board of Directors
Velké Opatovice 28. 3. 2011
Výroční zpráva 2010 | Annual Report 2010 | 49
Final Accounts
Balance Sheet ('000' Kč) – numbering of lines in accordance with the account sheet(lines with a zero value are not mentioned)
2008 2009 2010
TOTAL ASSETS 1,534,993 1,384,524 1,411,593
B. Long-term possession 699,251 668,822 658,905
B.I. Immaterial long – term possession 3,541 6,491 12,778
3. Software 102 56 24
4. Evaluation rights 104 - -
6. Other finisheds immaterial long – term possession 3,335 6,435 12,662
7. Not finisheds immaterial long – term possession - - 92
B.II. Material long – term property 665,128 631,749 615,545
B.II. 1. Lands 27,883 29,728 30,585
2. Structures 374,408 360,591 378,527
3. Independent movable things and sets of movable things 164,805 138,528 125,267
6. Other long – term material possession 52,881 46,183 40,731
7. Not finished long – term material 41,687 56,719 40,390
8. Granted advances for long – term material property 3,464 - 45
B.III. Financial investments 30,582 30,582 30,582
B.III. 1. Proportions in controlled and managed people 100 100 100
2. Proportions in entity accounting under substantial effect 30,482 30,482 30,482
C. Current assets 816,231 699,799 741,648
C.I. Inventory 453,034 440,264 415,128
C.I. 1. Material 210,802 200,524 194,478
2. Manufacture in process and semiproducts 34,987 32,398 24,258
3. Products 207,229 207,342 196,392
5. Goods 16 - -
C.II. Long-term receivables 925 887 887
C.II. 6. Other receivables 925 887 887
C.III. Short-term receivables 303,334 192,466 301,523
C.III. 1. Receivables from business relations 200,855 119,830 163,388
2. Receivables for controlled and managed people 62,784 34,898 99,376
4. Receivables to partners and associations - - -
6. State-tax receivables 16,214 23,513 26,767
7. Other rendered deposits 23,300 14,049 11,350
8. Active supposed accounts - - 96
9. Other influences 181 176 546
C.IV. Short-term financial property 58,938 66,182 24,110
C.IV. 1. Money 1,044 1,157 986
2. Accounts in banks 57,894 65,025 23,124
D.I. Time distinction 19,511 15,903 11,040
D.I. 1. Costs of future periods 19,511 15,903 11,040
50 | Výroční zpráva 2010 | Annual Report 2010
Final Accounts
Balance Sheet ('000' Kč) – numbering of lines in accordance with the account sheet(lines with a zero value are not mentioned)
2008 2009 2010
TOTAL LIABILITIES 1,534,993 1,384,524 1,411,593
A. Own capital 1,006,196 878,130 963,619
A.I. Basic capital 757,400 757,400 757,400
A.I. 1. Basic capital 757,400 757,400 757,400
A.II. - -168,110 -80,016
A.II. 3. - -168,110 -80,016
A.III. Reserve fund, indivisible fund and other funds from profit 14,362 17,761 21,419
A.III. 1. Legal reserve fund 13,277 16,241 19,639
3. Statutary&other funds 1,085 1,520 1,780
A.IV. Economy outcome from past years 175,148 203,125 227,574
A.IV. 1. Not divided profit from past years 175,148 203,125 227,574
A.V. Economy outcome of current bookkeeping period 59,286 67,954 37,242
B. Foreign resources 528,797 506,394 447,974
B.I. Reserves 76,403 84,795 34,148
B.I. 1. Reserves according to special legal regulations 58,678 64,057 22,569
3. Reserve for revenue tax 17,725 20,738 11,579
B.II. Long-term obligations 16,574 17,946 19,538
B.II. 10. Postponed tax obligation 16,574 17,946 19,538
B.III. Short term obligations 188,036 344,453 261,349
B.III. 1. Obligations from business relations 52,424 59,992 65,947
2. Obligations to controlled and managed people 4,103 3,253 2,007
4. Obligations to partners and associations 285 303 369
5. Obligations for employees 58,409 48,581 54,388
6. Obligations to social security and health insurance 7,772 6,498 7,126
7. State-tax obligations, grants and subsidy 5,429 7,636 13,634
8. Short – term received deposits 41,220 35,601 25,726
10. Supposed accounts of liabilities 16,735 11,747 10,621
11. Other obligations 1,659 170,842 81,531
B.IV. Bank credits and helps 247,784 59,200 132,939
B.IV. 1. Long-term bank credits 74,430 53,862 44,258
2. Short-term bank credits 173,354 5,338 88,681
Výroční zpráva 2010 | Annual Report 2010 | 51
Final Accounts
Profit and Loss Accounts ('000' Kč) – numbering of lines in accordance with the account sheet(lines with a zero value are not mentioned)
2008 2009 2010I. Goods sales 26,382 4,609 8,445A. Expended costs for sold goods 28,287 8,163 9,443 Business margin -1,905 -3,554 -998II. Performances 1,363,344 1,083,742 1,079,948II. 1. Sales of own products and services 1,218,682 999,831 1,008,587 2. Change of state of intradepartmental stock of own manufacture -1,598 647 -20,907 3. Activation 146,260 83,264 92,268B. Performance consumption 883,381 601,197 691,234B. 1. Consumption of material and power 717,176 482,708 523,831B. 2. Services 166,205 118,489 167,403 Added value 478,058 478,991 387,716C. Personal costs 307,798 270,187 257,984C. 1. Wages costs 221,607 198,619 187,411C. 2. Renumerations to the members of Company and Cooperative 5,209 4,258 3,285C. 3. Costs for social security 76,251 63,094 63,447C. 4. Social Costs 4,731 4,216 3,841D. Taxes and charges 2,896 2,919 4,428E. Depreciation of immaterial long - term and material property 79,498 80,512 71,959III. Sales of long - term property and material 27,116 5,531 18,145III. 1. Sales of long-term property 14,113 73 2,428 2. Sales of long-term material 13,003 5,458 15,717F. Balance price of sold long - term property 47,710 21,903 28,238F. 1. Balance price of sold long-term property 11,974 - 1,461F. 2. Sold material 35,736 21,903 26,777G. Change of reserve state and rectifying items in a service area and complex costs of next period 9,891 6,430 -45,938IV. Other service revenues 41,982 31,685 33,969H. Other service costs 41,915 34,033 35,846 Service economic outcome 57,448 100,223 87,313VII. Revenues from long-term financial property - 2,647 2,506VII. 1. Revenues from proportions in controlled and managed people and entily accounting - 2,647 2,506IX. Revenues from re-evaluation of asset bonds and derivates - - 1,798L. Cost of re-evaluation of bonds and derivates - - 24,529R Extraordinary costs - - 34R Extraordinary economy outcome - - -34R Economy outcome for bookkeeping period - - 37,247X. Revenue interests 34 858 1,016N. Cost interests 16,664 7,680 4,617XI. Other financial revenues 83,957 31,211 14,084O. Other financial costs 47,764 38,567 28,716 Financial economy outcome 19,563 -11,531 -38,458Q. Revenue tax for current activities 17,725 20,738 11,579Q. 1. Revenue tax for current activities - mature 17,725 20,738 11,579Q. 2. Revenue tax for current activities - postponed - - - Economy outcome for current activities 59,286 67,954 37,276
52 | Výroční zpráva 2010 | Annual Report 2010
Sale
1 Czech Republic 30.68 %
2 Germany 26.87 %
3 Poland 10.52 %
4 Italy 6.18 %
5 USA 4.18 %
6 Slovakia 2.84 %
7 Austria 2.20 %
8 Republic of Montenegro 1.95 %
9 France 1.94 %
10 Canada 1.67 %
11 Slovenia 1.67 %
12 Japan 1.52 %
13 China 1.34 %
14 Others 6.44 %
1
1
2
34
5
6
7
8
9
10
2
34
5
6
7
8
9
10
11
1213
14
Main Teritory in 2010
Summary of Deliveries by Industrial Branches in 2010
1 Consumer Industry & Trading 43.20 %
2 Coke Industry 21.06 %
3 Glass Industry 12.63 %
4 Metallurgy 9.48 %
5 Ceramic Industry 5.51 %
6 Non-Ferrous Metals Industry 3.79 %
7 Building Industry 2.05 %
8 Cement and Lime Industry 1.92 %
9 Chemical & Petroleum Industry 0.31 %
10 Power Industry 0.05 %
Výroční zpráva 2010 | Annual Report 2010 | 53
Supervisory Board Report
In the course of 2010, the Supervisory Board was focused on fulfillment of requirements imposed by relevant laws and Articles of Association. The Supervisory Board supervised the top management and provided advice related to company management. It also participated in making crucial decisions of the company. The Supervisory Board received reports from the Board of Directors on regular basis in which vital issues of company strategy, business development and risk management were dealt with in detail and in due time.
Sessions of the Supervisory Board
Five regular sessions of the Supervisory Board were held in 2010, in which relevant issues were discussed. The decisions taken were monitored by the Supervisory Board and then discussed by the Board of Directors.
Till the Supervisory Board report one regular session of Supervisory Board was held in 2011, where 2010 business results were discussed. All reports submitted by the Board of Directors were discussed in detail. All business transactions that were subject to approval by the Supervisory Board under relevant legal provision and Articles of Association were discussed in detail prior to issuing the decision.
In the time between sessions the Supervisory Board was kept informed on all matters of issue and the approval was sought (where necessary). The financial position of the company incl. turnover development, financial results as well as current and future orders in individual product lines was in focus at all sessions.
The Advisory Board’s meeting had the following specific points on the agenda: •conceptoftheinvestmentdevelopmentfortheupco-
ming years,•investmentplanforthenextyearandfundingtheCZK
exchange rate
•furtherdevelopmentintheareaofclayexcavationandwaste site operation
•situationintheaffiliatedcompanyP-DKremenincl.long-term prospects of quartzite excavation
•evalutationofimpactsoftheeconomiccrisisonthecompany
•developmentoftheprojecttoincreaselabourproduc-tivity and decrease the headcount.
Balance sheet audit
The annual closure of accounts for the period ending 31st December 2010 presented by the Board of Directors was based on the decision by the General Meeting verified by EKI AUDIT. The inspection revealed adherence to all appropriate laws. The auditor had no remarks related to the accounting records. The annual closure of accounts, together with the audit result, has been handed over to all members of the Supervisory Board. Based on the performed examination the Supervisory Board confirms herewith the result of the annual closure of accounts as well as the by the Board of Directors presented documents about the company situation and the annual accounts to 31. 12. 2010. All these documents thus become valid. The Supervisory Board hereby approves a proposal by the members of the Board of Directors regarding distribution of the profit.
The Supervisory Board accepted a report of the Board of Directors related to the relationships between interconnected entities in accordance with the provision of § 66a of the Commercial Code. No objections have been raised regarding this report.
The annual closure of accounts for the period until 31st December 2010 was accepted by the Supervisory Board and has been passed onto the General Meeting for approval.
Supervisory Board Wilsdruff, StT Grumbach April 11, 2011
Jürgen Preiss-Daimler Chairman
Supervisory Board Report
54 | Výroční zpráva 2010 | Annual Report 2010
Auditor Report
EKI AUDIT, s.r.o., Auditor, Accounting & Consulting Company
EKI AUDIT, s.r.o. Blansko, 6 Fügnerova St., Phone/Fax: 516 418 757, 516 418 308, e-mail: [email protected],
Czech Republic Auditor Chamber License No. 203
Report on Verification of the 2010 Report on Relations between Interconnected Parties
Accounting unit: P-D Refractories CZ a. s.
Nádražní 218, 679 63 Velké Opatovice
BIN: 163 43 409
Verifier: EKI AUDIT, s.r.o. – decree No. 203
Fügnerova 6, 678 01 Blansko
Auditor: Ing. Marcela Štěpánková – decree No. 413
In accordance with the international audit standards concerning screenings and related application clauses of the Chamber of Auditors of the Czech Republic, we have verified factual accuracy of the data stated in the Report on Relations between Interconnected Parties.
The company management is responsible for compiling the Report on the Relations between Interconnected Parties. Our task is to issue, based on the aforementioned standards and conducted verification, a statement.
We state that we have verified the factual accuracy of the data stated in the 2010 Report on the Relations between Interconnected Parties executed by P-D Refractories CZ a.s. and found no significant discrepancies.
In Blansko, on 19 April 2011
Ing. Marcela Štěpánková Decree No. 413
EKI AUDIT, s.r.o. License No. 203
Výroční zpráva 2010 | Annual Report 2010 | 55
Verification of Annual Report
Report on Verification of the 2010 Annual Report
Accounting unit: P-D Refractories CZ a. s. Nádražní 218, 679 63 Velké Opatovice
BIN: 163 43 409
Verifier: EKI AUDIT, s.r.o. – decree No. 203 Fügnerova 6, 678 01 Blansko
Auditor: Ing. Marcela Štěpánková – decree No. 413
In accordance with the international audit standards concerning screenings and related application clauses of the Chamber of Auditors of the Czech Republic, we have verified the conformity of the data in the 2010 Annual Report of P-D Refractories CZ a.s.
The company management is responsible for compiling the Annual Report. Our task is to issue, based on the aforementioned standards and conducted verification, a statement.
In our opinion, the data stated in this Annual Report is in accordance, in all important aspects, with the final accounts report for the period up to 31. 12. 2010 which was audited and approved with no reservations on 3 March 2011.
In Blansko, on 10 May 2011
Ing. Marcela Štěpánková Decree No. 413
EKI AUDIT, s.r.o. License No. 203
Data present in this annual report correspond of fact and there aren’t any essentials,which could be exact and correct review of corporation P-D Refractories CZ a. s. Velké Opatovice to affect.
Velké Opatovice May 12, 2011 Ing. Ladislav Kašpar
Statutary Declaration