annual report 2004 - Severočeské doly a.s.

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sumption of materials and energy fell by CZK 11.3 million, and the cost of services rose by CZK 38.4 million.
In the field of depreciation, there was a year-on-year reduction by CZK 63.5 million.
The company made a profit from financial operations of CZK 390 million, which is CZK 68 million
(14.8%) less compared with the previous year. This year-on-year reduction can mainly be attributed
to the posting of a provision of CZK 55 million for the equity interest in Teplárna Ústí nad Labem
at the end of 2003 and an absolute fall in appreciated financial assets, which is due to the exceptionally
high dividends for 2003. In order to improve the value of its idle assets, much of which is composed
of reserves to eliminate the effects of mining activities, the company used liquid financial instruments
with a quality rating and with an adequate term of investment, in accordance with the company’s conservative
risk policy. In 2004, the company recorded no interest expense based on credits or loans.
Net profit amounted to CZK 1,365 million, i.e. CZK 70 million (5.4%) more than in 2003.
Distribution of company net earnings (CZK’000)
2004 2003 2002 2001 2000
Net profit
Allocation to:
1,364,798 1,294,309 962,859 1,113,183 826,926
reserve fund
other funds
68,240 64,716 48,143 55,659 41,347
social fund 23,948 23,416 27,480 26,859
municipal donations fund 50,000 30,000 50,000 50,000
investment fund 313,397 613,993 494,670
capital interest to reduce unemployment 30,000
Dividends 2,160,013* 2,112,763* 540,003 359,901 179,950
Board member bonuses 13,650 11,350 7,900 6,150 4,100
Transfer to retained earnings 409
* in addition to the current-year profit, retained earnings were also used for the dividend payout