zssk ENG.indd

2008 ANNUAL REPORT 

Železničná spoločnosť Cargo Slovakia, a. s.

INTRODUCTORY SPEECH BY THE CHAIRMAN 

OF THE BOARD OF DIRECTORS 4 


OF THE SUPERVISORY BOARD 5 

LIST OF USED ABBREVIATIONS 6 

MILESTONES OF 2008 7 

FREIGHT TRANSPORT 8 

CAPITAL INVESTMENTS OF COMPANY ZSSK CARGO 11 

QUALITY MANAGEMENT SYSTEM 11 

HUMAN RESOURCES 12 

RISKS 13 

SELECTED ECONOMIC INDICATORS 13 

AUDITOR´S REPORT AND IFRS FINANCIAL STATEMENT 

FOR THE YEAR FINISHED ON 31. 12. 2008 15 

ORGANIZATION STRUCTURE AS AT 31. 12. 2008 53 

CONTACTS 54


OF THE BOARD OF DIRECTORS 

It is essential to evaluate the year 2008 as a year of the company’s stabilization, in particular looking at its core activity 

– transport of goods. Integrated and clear business strategy which ZSSK CARGO applied in 2008 brought positive 

results. We pronounced already in July 2008 that company had achieved profit in the amount of more than 400 million 

SKK for the first half-year. During referred period we actually transported almost 100 thousand tons of goods above the 

plan. The first stagnation in freight transport was registered in the second half of the year. Financial crisis on the world 

trade markets was the reason that had particular impact on automotive, building and mainly metallurgy industry. Exactly 

metallurgy represents more than 60 percent of the overall ZSSK CARGO transport volume, therefore the decreasing of 

transport was irreversible. These circumstances caused the operations slump by more than 30 percent what consequently 

inflicted transport revenues decrease. Despite of the operations downturn ZSSK CARGO showed a profit in the amount 

of 83 million SKK, for the first time in its history. Management of the company succeeded in achieving the positive 

2008 economic results after the historical loss limit in 2007. Attained results prove that the changes within the company, 

which were initiated during the period 2006 and 2007 were well-founded and brought along success. 

ZSSK CARGO is a strategic freight transport company of the Slovak republic, which besides goods transport operates 

crucial transshipment and pump through capacities on the Eastern border with Ukraine. Its operation is essential for 

strategic production companies in Slovakia and in neighboring countries. In this context the modernization and reconstruction 

of pump through complex started in Eastern Slovak Transshipment Yards in Čierna nad Tisou in 2008. The 

modernization will improve the level of safety and protection of employees at work as well as environmental protection 

with minimization of negative impact and operations optimizing. From the view of investments most of the finances were 

aimed at core business of our company. The company’s fleet has significantly been strengthened by purchase of new cargo 

wagons. Energy measurement system installation to electric locomotives will allow real electric power consumption 

measurement which is unreserved condition for ZSSK CARGO performance on liberalized market with electric power in 

a position of the authorized user. 

ZSSK CARGO operates approximately 95 per cent of the Slovak freight railway transport. The level of fixed costs for realization 

of transport is disproportionately higher compare to road transporters, which takes effect in annual rail transport 

decrease. In this situation it is essential to invoke Principles of the State Transport Policy in particular in the field of 

entrepreneurship conditions equalization for all types of transport, internalization of external costs as well as general 

support of ecological transport modes. 

All processes which have been started by now in railway sector and within ZSSK CARGO bring gradually positive effects. 

I express my trust that financial and economic crisis discloses hidden reserves and in final effect will start the new 

chapter in 160 year long tradition of rail freight transport which is environmental friendly and safe at the same time. And 

herein is its future. 

I believe that in 2008 we made a significant progress in all specified scopes and targets. I extremely appreciate high 

employees’ dedication and at the same time I am well aware that we have been reaching up these results also thanks to 

the trust of our business partners and customers. Therefore I would like to thank you all. 

Mgr. Matej Augustín 

Chief Executive Officer & Chairman of the Board of Directors 

4


OF THE SUPERVISORY BOARD 

In order to assess year 2008 at ZSSK CARGO competently it is necessary to review the previous year when company 

successfully managed to decrease operational costs by more than 600 mil. SK, verify and post impartial necessary 

reserves for environmental loads and comprehensively change the financing system by banks. 

Despite needful investments the level of general company indebtedness decreased. Gradually significant move in 

transparency of ZSSK CARGO financial management took place by International Financial Reporting Standards (IFRS) 

implementation what on a large scale contributed to increased trust of the banks and financial institutions. The company 

also started up complex inspection of entrusted property utilization efficiency and identification of economically 

ineffective repair capacities. Moreover the procurement processes have been changed with the aim to assure savings 

in orders of goods and services. These restructuring steps enabled company to decrease the loss in 2007 compared 

to 2006 by more than 600 million SKK to historically lowest loss since the establishment of the company in an amount 

of 252 million SKK. 

In 2008 the trend proceeded and the main target was primarily stabilization and sustainability of decreased costs in 

the range of 2007. Based on this, the company’s management set up the highest target for 2008 to reach profit. All 

processes in ZSSK CARGO were started up to reach a fair profit by retaining standard transport performance of the 

company at a regular level of approximately 50 million tons of goods, whilst sustaining employment, competitiveness 

and technological development. 

In spite of significantly negative trends which were indicated by the incoming global financial crisis, the result of 

company’s consistent cost management was that ZSSK CARGO fulfilled its principal target for 2008 and according to 

financial results reached a profit in the amount of 83 million SKK for the first time in its history. 

The first 9 months of 2008 were at the level of planned performance and revenues with approximately 9 % decrease 

in the months of August and September. In the last quarter the impact of the world financial and consequently also 

economical crisis fully displayed also in the demand for transportation. Slump especially in metallurgical, building and 

automotive industry caused the downturn in the performance of ZSSK CARGO by more than 30 % and consequently 

almost identical downturn in the revenues from transportation of goods. I would like to point out that in spite of this 

fact the company finished year 2008 with a profit, what is very important also in regard of assessing the performance 

of the company into the future. 

In conclusion I would like to highlight that the company managed to stabilize certain transportations, develop cooperation 

with new customers and gain new transportations. The company’s share at the railway transport market in 

the year 2008 with 94 % in tons and 97 % in net ton-kilometers is the clear proof of the facts. Given persisting way of 

financing of the railway transport which makes it advantageous for road transport and in situation when ZSSK CARGO 

pays more than 40 % of costs to Infrastructure Manager ŽSR for the operation of the railway transport tracks, it is 

undoubtedly a success. 

JUDr. Zdeněk Schraml 

Chairman of the Supervisory Board 

5

LIST OF USED ABBREVIATIONS 

BCS 

ČD 

DB 

DRV 

EU 

ESTY 

GCU 

GPS 

IT 

LP 

MÁV 

ÖBB 

PKP 

RUW 

RIV 

TCT 

TDS 

VAT 

WTO 

ZSSK CARGO 

ŽSR 

Border Crossing Station 

České dráhy (Czech Railways) 

Deutsche Bahn AG (German Railways) 

Driving Railway Vehicle 

European Union 

Eastern Slovak Transshipment Yards 

General Contract of Use for Wagons 

Global Positioning System (global system for determination position) 

Information Technologies 

Loading Prohibited 

Magyar Államvasutak (Hungarian Railways) 

Österreichische Bundesbahnen (Austrian Railways) 

Polskie Koleje Pánstwowe (Polish Railways) 

Regulations on Use of Wagons in International Rail Transport of Passengers and Goods 

Agreement Governing the Exchange and Use of Wagons between Railway Undertakings 

Terminal of Combined Transport 

Train Dispatching System 

Value Added Tax 

Wagon-Traffic Office 

Železničná spoločnosť Cargo Slovakia, a.s. 

Železnice Slovenskej republiky 

6

MILESTONES OF 2008 

The operation and economic activity of the company ZSSK CARGO were influenced during the year 2008 by these 

following important events: 

• Finishing of the commercial and energetic dispatching system, completion of installation of measurement systems 

on DRV of electric traction (303 DRV), preparation and realization of necessary steps and terms resulting from valid 

legislation for conducting business with electric energy, 

• Purchase of new freight wagons (139 wagons of Shimmns(s) line, 132 wagons of Habbillns(s) line, 100 wagons of 

Eamos line and 2 wagons of model Lgs line for intermodal transport), which significantly reinforced the rolling stock 

of ZSSK CARGO, 

• Modernization of DRV bearing line of independent traction (3 DRV of series 735 to 736, 1 model DRV of series 742 

to 746 and 1 model DRV of series 750/753 to 756), 

• Homologization of DRV of series 131 on PKP rail network and DRV of series 363 and 240 on MÁV rail network, 

• 1st phase of reconstruction and modernization of pumping complex of Trade Centre and Transshipment Yard Čierna 

nad Tisou, which will allow to pump through commodities like petroleum products, alcoholic derivatives, methanol, 

ethanol, mineral oils and hydrocarbons. At the same time, the modernization will improve the level of safety and 

protection of employees at work as well as environmental protection and will afford the enhancement of work 

technology, 

• Test operation and realization of new transportations within intermodal transport: 

– Dunajská Streda – Bremerhaven (DB) and back 

– Dunajská Streda – Hamburg (DB) 

– Liptovský Hrádok – Pöls (ÖBB) (wood chip) 

– Veľká Ida – Malaszewicze (PKP) (dismantled automobiles) 

– Shezen (China) – Mělník (ČD) (pilot train), 

• Signing of the agreement on long-term lease of the Terminal of Combined Transport Dobrá with the company TRANS- 

CONTAINER Moscow for the purpose of increasing the volume of traffic of ZSSK CARGO across Slovakia and the 

utilization of the terminal for transportations of containers between Russia and Adriatic ports Terst and Koper, 

• Taking-over of activities of wagon-traffic office and shunting from ŽSR for the purpose of higher work utilization of 

own employees and improvement of processes by the register of train. During the year 2008 ZSSK CARGO took over 

WTO in all BCS besides the station Bratislava – Východ, 

• Expansion of taking-over of trains on confidence of individual BCS within EU from foreign railway transporters. In 

2008 the number of BCS taking-over of trains on confidence increased by the border crossing Plaveč – Muszyna, 

• Development and implementation of the information system TDS (train dispatching system) for the support of decision 

making processes within the operative management of operation, 

• Separation of procurement and purchase processes from processes of stock control and centralization of procurement 

process in structure on relevant commodities of goods and services, 

• Activation of the 2nd phase of the information system for the support of operation management (OIS), where it was 

solved: optimalization of run of empty wagons, monitoring and registration of dispositions of wagon keepers, control 

and registration of LP, monitoring of delivery terms on consignments, planning of circulation of DRV, locomotive and 

train crew, tracking of train position through GPS, 

• Preparation of conversion to euro exactly solved modification of all information systems as well as updating company’s 

tangible internal documents. Meanwhile transition period, company try to avoid possible risks of loss of the 

customer, injury to company’s reputation or possible interruption of business activity in time of transition period. 

• Contract conclusion with Infrastructure Manager (ŽSR) to assure operation quality on track. 

7

FREIGHT TRANSPORT 

Development of Transportation Compared to the Plan 

Company ZSSK CARGO transported 44 525 thousand of tons in 2008. The plan of transport in volume of 48 112 thousand 

of tons was filled to 92,5 %, in absolute numbers it was default of 3 587 thousand of tons. 

In thousand tons Plan 2008 Actual 2008 

Import 18 816 16 790 89,2% 

Transit 11 980 11 996 100,1% 

Export 11 456 10 280 89,7% 

Domestic 5 860 5 459 93,2% 

48 112 44 525 92,5% 

20 000 

15 000 

Plan 2008 

Actual 2008 

10 000 

5 000 

0 

Import 

Transit 

Export 

Domestic 

Strong default was in commodities as iron ore (by 1 922 thou. of tons), metals (by 525 thou. of tons) and coal 

(by 513 thou. of tons), compared to fair settlement which was only in intermodal transport (by 550 thou. of tons) and 

petroleum products (by 70 thou. of tons). 

In thousand tons Plan 2008 Actual 2008 

Iron Ore 14 302 12 380 86,6% 

Metal 7 932 7 407 93,4% 

Coal 7 885 7 372 93,5% 

Building Materials 4 950 4 609 93,1% 

Petroleum Products 3 270 3 340 102,1% 

Chemical Products 3 431 3 257 94,9% 

Intermodal Transport 1 730 2 280 131,8% 

Wood 2 430 2 248 92,5% 

Nonspecified 1 313 1 092 83,2% 

Foodstuffs 869 540 62,1% 

48 112 44 525 92,5% 

8

Comparison of Freight Transport with Previous Period 

In comparison with last year, the volume of transportation decreased by 4 629 thousand of tons, i.e. inter-annual 

decrease by 9,4 %, which was caused mainly by decreasing in transportation of iron ore (by 1 362 thou. of 

tons), coal (by 1 118 thou. of tons) and metals (by 967 thou. of tons). Compared to previous year, only intermodal 

transport increased by 471 thou. of tons. 

In thousand tons 2008 2007 2006 2005 2008/2007 

Export 16 790 11 639 12 204 11 686 144,3% 

Transit 11 996 12 116 13 013 11 330 99,0% 

Import 10 280 19 015 18 454 17 825 54,1% 

Domestic 5 459 6 384 6 384 6 904 85,5% 

44 525 49 154 50 055 47 745 90,6% 

20 000 

15 000 

Actual 2007 

Actual 2008 

10 000 

5 000 

0 

Export 

Transit 

Import 

Domestic 

Development of Freight Transport According to Commodities 

In thousand tons 2008 2007 2006 2005 2008/2007 

Iron Ore 12 380 13 742 15 235 12 904 90,1% 

Metal 7 407 8 374 7 757 6 893 88,5% 

Coal 7 372 8 490 8 297 8 652 86,8% 

Building Materials 4 609 5 027 5 160 5 121 91,7% 

Petroleum Products 3 340 3 515 3 375 3 483 95,0% 

Chemical Products 3 257 3 598 3 643 3 759 90,5% 

Intermodal Transport 2 280 1 809 1 334 1 179 126,0% 

Wood 2 248 2 471 2 588 3 517 91,0% 

Nonspecified 1 092 1 328 1 577 949 82,2% 

Foodstuffs 540 800 1 090 1 288 67,5% 

44 525 49 154 50 055 47 745 90,6% 

9

STRUCTURE OF DRV 

Development of DRV Number 

2008 2007 2006 2005 

Electric Locomotives 331 333 333 338 

Diesel Locomotives 405 464 469 476 

Motor Coaches 2 2 2 2 

738 799 804 816 

Age Structure of DRV 

Years up to 15 up to 30 over 30 Total 

Electric Locomotives 17 149 165 331 

Diesel Locomotives 33 85 287 405 

Motor Coaches - 1 1 2 

50 235 453 738 

STRUCTURE OF FREIGHT WAGONS FLEET 

Development of Number of Wagons 

2008 2007 2006 2005 

Covered Wagons 2 725 3 227 3 427 3 962 

Open Wagons 7 121 7 244 7 202 7 265 

Platform Wagons 2 973 3 058 3 059 3 154 

Other Freight Wagons 1 691 1 790 1 933 1 989 

14 510 15 319 15 621 16 370 

Number of Wagons According to International Specifications and their Age Structure 

Years up to 5 6-10 11-15 16-20 21-25 26-30 over 30 Total 

E 105 133 159 1 472 2 159 1 921 2 5 951 

F - - - - - 717 453 1 170 

G - - - 238 443 45 103 829 

H - 59 127 - 391 72 694 1 343 

I - - - - - 15 - 15 

K 15 - - 18 - - 215 248 

L - - - 40 2 - 3 45 

R 300 - - - 448 275 860 1 883 

S - 72 354 - - - 371 797 

T - 36 87 203 52 4 156 538 

U - - - 54 75 18 88 235 

Z - - - - 549 166 741 1 456 

420 300 727 2 025 4 119 3 233 3 686 14 510 

10

CAPITAL INVESTMENTS 

OF COMPANY ZSSK CARGO 

(ACCOUNTING BALANCE AS AT DECEMBER 31, 2008 IN SKK) 

Company 

Number of 

equites (pcs.) 

Share (%) Value of capital investments 

EU-RAIL SLOVAKIA, a.s., Košice 60 30 1 

Intercontainer - Interfrigo s. c. Brusel, Belgicko 385 0,03 229 269 

Bureau Central de Clearing s. c. r. l. Brusel, Belgicko 4 2,96 89 616 

Durban 41 964 40 46 120 000 

46 438 886 

QUALITY MANAGEMENT SYSTEM 

Satisfaction of external as well as internal customer with provided services is key objective of ZSSK CARGO. Established 

Quality Management System promotes fulfillment of this scope. In order to come up to expectations of the business 

partners, company ZSSK CARGO is focusing in particular on continuous improvement of the quality of provided 

services and products. 

Performed re-certifying and supervisory audits by an independent certification company TÜV SÜD Slovakia in 2008 

confirmed that the implemented system of quality management system has been further maintained and continuously 

improved in compliance with requirements of the international standard STN EN ISO 9001:2001. 

Company ZSSK CARGO owns the quality certificate according to STN EN ISO 9001:2001 for the following products: 

• Freight Rail Transport (Logistic Trains) 

• Maintenance and Repair of Rolling Stock 

• Group of Procurement and Logistics Processes 

• Eastern Slovak Transshipment Yards 

11

HUMAN RESOURCES 

Company Železničná spoločnosť Cargo Slovakia, a.s. within the frame of strategic management of human resources 

pays great attention to skilled and personal improvement as well as employees care. 

As at December 31st 2008, company ZSSK CARGO had 10 448 registered employees, which means a decrease of 

365 employees compared to year 2007. During the year 2008 354 employees were employed from external labour 

market and 724 ZSSK CARGO employees finished their employment. Decreasing of number of staff resulted from 

implementation of the projects aimed at optimalization and increasing effectiveness of work as well as turn-out of 

employees to external surroundings. 

Development of Employment 

2008 2007 2006 2005 2008 - 2007 

Registered Number of Employees 10 448 10 813 11 375 11 856 (365) 

Average monthly wage 22 337 20 638 19 388 18 305 1 699 

Education Structure 

Education 2008 2007 2006 2005 2008 - 2007 

Elementary 288 304 336 381 (16) 

Apprenticeship (Apprent.School) 4 126 3 890 4 724 4 830 236 

Completed Secondary 2 598 2 050 2 102 2 455 548 

Completed Sec. Proffesional 2 716 3 868 3 529 3 567 (1 152) 

University 720 701 684 623 19 

10 448 10 813 11 375 11 856 (365) 

Age Structure 

Age 2008 2007 2006 2005 2008 - 2007 

18-29 640 713 832 1 101 (73) 

30-39 2 311 2 549 2 797 3 067 (238) 

40-49 3 549 3 670 3 942 4 214 (121) 

50-62 3 935 3 872 3 801 3 474 63 

over 62 13 9 3 - 4 

10 448 10 813 11 375 11 856 (365) 

Within the human resources development in 2008 company ZSSK CARGO focused on: 

• Obligatory education of operative employees to acquire skills related to Act on Railroads; 

• Additional education to acquire miscellaneous skills and knowledge to relevant job positions; 

• Improvement of foreign languages knowledge of employees in selected working positions where this knowledge is 

required; 

• Extending of employees´ qualification in the form of distance learning and its support. 

Company ZSSK CARGO concluded Collective Labour Agreement with nine Union Headquarters. In line with Collective 

Labour Agreement within 2008 social dialog sustained with social partners. Within a year 2008 company ZSSK CAR- 

GO compensated social benefits according to Collective Labour Agreement above scope of Labour Code in an amount 

244 million SKK (23 353 SKK per employee). 

Average wage within a year 2008 was achieved in an amount 22 337 SKK, whereby company fulfilled its obligation 

from Collective Labour Agreement and represent 6,5 % increasing compared to 2007 according to methodology of 

Collective Labour Agreement evaluation. 

12

RISKS 

Influence of negative trends that have been accompanying the rail transport for several years deepened in the second 

half of 2008 due to economic and financial crisis. The period of the end of 2008 is defined by strong decrease of 

transportation volume and operation performance of ZSSK CARGO, mainly in transportation of collective and heavy 

substrates. One of the main reasons of transportation decrease has been the reduction of industrial production of 

crucial companies influenced by stated economic and financial crisis. 

The steps destined to legislative changes in the scope of track access charges were not realized neither in 2008 nor 

systemic steps were created from side of national government that should have led to harmonization of conditions 

between road and rail freight transport in line with European legislative. 

Without application of state systemic implementation in scope of track access charges for purpose to achieve at least 

the level of surrounding states, hereafter remains high risk scope of securing of competitiveness. From that point of 

view domestic transport and transit are the highest risk transport modes. 

SELECTED ECONOMIC INDICATORS 

in million SKK 2008 2007 2006 2005 2008 - 2007 

Total Assets 23 712 22 752 23 058 22 535 960 

Longterm Tangible Property 20 033 18 918 18 654 19 221 1 115 

Equity 11 834 11 616 11 787 12 392 218 

Loans (short-term + long term) 5 199 5 788 6 086 5 029 (589) 

Revenues 13 887 14 480 16 507 16 095 (593) 

Costs 13 991 14 579 17 668 16 245 (588) 

Profit/(Lost) out of financial 

operations 

187 (154) 306 (278) 341 

Economic Result 83 (252) (855) (428) 335 

13

AUDITOR´S REPORT AND IFRS FINANCIAL STATEMENT 

FOR THE YEAR FINISHED ON 31. 12. 2008

16 

AUDITOR’S REPORT

INCOME STATEMENT 

In million of Slovak crowns Note 31 December 2008 31 December 2007 

Revenues 

Transport and related revenues 3 12,228 12,847 

Other revenues 4 1,659 1,633 

13,887 14,480 

Costs and expenses 

Consumables and services 5 (8,296) (8,979) 

Staff costs 6 (3,787) (3,836) 

Depreciation, amortisation and impairment of property, 

plant and equipment and intangible assets 

12, 13 (1,981) (1,553) 

Other operating income / (expenses), net 7 73 (211) 

(13,991) (14,579) 

Finance income (costs) 

Finance income 8 270 130 

Finance costs 9 (411) (427) 

Penalty interest on unpaid State contribution 17 266 - 

Gains on financial derivatives, net 10 62 143 

187 (154) 

Net profit / (loss) 83 (252) 

The accounting policies and explanatory notes form an integral part of the financial statements. 

Approved by Mgr. Matej Augustín and Ing. Anton Jaborek on behalf of the Board of Directors on 20 May 2009. 

18

BALANCE SHEET 


ASSETS 

Non-current assets 

Property, plant and equipment 13 20,033 18,918 

Intangible assets 12 536 403 

Investments 46 - 

20,615 19,321 

Current assets 

Inventories 14 640 571 

Trade and other receivables 15 2,353 2,823 

Cash and cash equivalents 16 104 37 

3,097 3,431 

TOTAL ASSETS 23,712 22,752 

EQUITY AND LIABILITIES 

Shareholder’s equity 

Registered capital 17 12,100 12,100 

Legal reserve fund 17 1,150 1,150 

Other funds 17 36 (330) 

Other reserves 17 - 231 

Accumulated losses 17 (1,452) (1,535) 

Total equity 11,834 11,616 

Non-current liabilities 

Interest-bearing loans and borrowings 18 2,328 1,681 

Employee benefits 19 355 469 

Provisions 20 1,275 1,534 

Obligations under finance leases 22 1,701 359 

Other non-current liabilities 6 7 

5,665 4,050 

Current liabilities 

Interest-bearing loans and borrowings 18 2,871 4,107 

Employee benefits 19 18 16 

Provisions 20 93 45 

Trade and other payables 21 3,028 2,829 

Obligations under finance leases 22 203 89 

6,213 7,086 

Total liabilities 11,878 11,136 

TOTAL EQUITY AND LIABILITIES 23,712 22,752 



19

STATEMENT OF CHANGES OF EQUITY 

In million of Slovak crowns 

Registered 

capital 

Legal 

reserve 

fund 

Other 

funds 

Other 

reserves 

Accumulated 

losses Total 

At 1 January 2007 12,100 1,150 (430) 250 (1,283) 11,787 

Net losses on financial 

derivatives 

- - - (19) - (19) 

State contribution - - 100 - - 100 

Net loss - - - - (252) (252) 

At 31 December 2007 12,100 1,150 (330) 231 (1,535) 11,616 

Net losses on financial 

derivatives 

- - - (231) - (231) 

State contribution (Note 17) - - 366 - - 366 

Net profit - - - - 83 83 

At 31 December 2008 12,100 1,150 36 - (1,452) 11,834 



20

CASH FLOW STATEMENT 


Operating activities 

Net profit / (loss) 83 (252) 

Adjustments to reconcile net profit / (loss) to net cash flows: 

Non-cash items 

Depreciation, amortisation and impairment of property, 

plant and equipment and intangible assets 

1,981 1,554 

Unrealised foreign exchange differences (169) (123) 

Gain on sale of property, plant and equipment (46) (53) 

Interest expense 405 423 

Interest income (2) (2) 

Movements in provisions and employee benefits (340) 262 

Working capital adjustments 

(Increase) decrease in inventories (35) 1 

(Increase) decrease in trade and other receivables (84) 83 

Decrease in net receivables from derivatives 296 406 

Increase in trade and other payables 207 230 

Net cash flows from operating activities 2,296 2,529 

Investing activities 

Purchase of property, plant and equipment 12, 13 (1,671) (1,970) 

Proceeds from sale of property, plant and equipment 47 28 

Net cash flows used in investing activities (1,624) (1,942) 

Financing activities 

State contribution 17 366 100 

Proceeds from loans and borrowings 33,385 28,307 

Repayment of loans and borrowings (33,231) (29,084) 

Interest paid (405) (418) 

Interest received 2 2 

Principal payments under finance lease obligations (151) (196) 

Net cash flows used in financing activities (34) (1,289) 

Net increase (decrease) in cash and cash equivalents 638 (702) 

Cash and cash equivalents at 1 January 16 (1,023) (321) 

Cash and cash equivalents at 31 December 16 (385) (1,023) 



21

1. CORPORATE INFORMATION 

Železničná spoločnosť Cargo Slovakia, a.s. (“ZSSK CARGO” or “the Company”), a joint stock company registered in the 

Slovak Republic, was founded on 1 January 2005 as one of two successor companies to Železničná spoločnosť, a.s. 

(“ŽS”). ZSSK CARGO was incorporated with the Commercial Register of the District Court Bratislava I, Section Sa, Insert 

No. 3496/B at the date of its establishment, IČO 35 914 921, DIČ 20 219 200 65. 

The Slovak State is the sole shareholder of the Company through the Ministry of Transport, Post and Telecommunications 

of the Slovak Republic (“MTPT”) with its registered office on Námestie slobody 6, 811 06 Bratislava. The 

Company does not belong to any group for consolidation purposes. The Company is not an unlimited liability partner 

in any other company. 

The Company’s predecessor, ŽS, was founded on 1 January 2002 through the demerger of Železnice Slovenskej Republiky 

(“ŽSR”) and assumed responsibility for the provision of freight and passenger rail transport and traffic services within 

Slovakia, while ŽSR retained responsibility for the operation of the traffic routes. ŽS was dissolved without liquidation effective 

31 December 2004 and replaced, following a second demerger, by two newly established successor companies: 

Železničná spoločnosť Slovensko, a.s. (“ZSSK”) for passenger transportation and traffic services and ZSSK CARGO for 

freight transportation and traffic services. 

ZSSK CARGO’s main business is the provision of freight transportation and related services. Additionally, the Company 

rents properties and provides repair and maintenance, cleaning and other support services to ZSSK. The Company is 

organized and managed as a single business segment and is viewed as a single operating segment by the Board of 

Directors for the purposes of resource allocation and assessing performance. 

The registered office of the Company is Drieňová 24, 820 09 Bratislava, Slovakia. 

These financial statements have been prepared as the Company’s annual financial statements in accordance with 

Section 17 (6) of the Slovak Accounting Act No. 431/2002 Coll. as later amended and are placed at the Company’s 

registered address and at the Commercial Register of the District Court Bratislava I, Záhradnícka 10, 812 44 Bratislava. 

These financial statements were approved and authorized for issue by the Board of Directors on 

20 May 2009. 

The General Meeting held on 19 June 2008 approved the Company’s financial statements for the previous accounting 

period. 

2.1 BASIS OF PREPARATION 

These financial statements have been prepared in accordance with International Financial Reporting Standards and all 

applicable standards that have been adopted by the European Union (“IFRS”). IFRS comprise standards and interpretations 

approved by the International Accounting Standards Board (“IASB”) and the International Financial Reporting 

Interpretations Committee (“IFRIC”). 

At this time, due to the endorsement process of the European Union and the nature of the Company’s activities, there is 

no difference between the IFRS policies applied by the Company and those adopted by the European Union. 

The financial statements have been prepared on a historical cost basis, except for certain derivative financial instruments 

that have been measured at fair value. The financial statements are presented in Slovak crowns and all values 

are rounded to the nearest million of Slovak crowns except when otherwise indicated. 

The financial statements were prepared using the going concern assumption that the Company will continue its operations 

for the foreseeable future. 

The Company’s financial year is the same as the calendar year. 

22

2.2 CHANGES IN ACCOUNTING POLICIES 

AND DISCLOSURES 

The accounting policies adopted are consistent with those applied in the financial statements at 31 December 2007 

except that the Company has adopted the following new and amended IFRS and IFRIC interpretations during the accounting 

period: 

– Amendments to IAS 39 Financial Instruments: Recognition and Measurement and IFRS 7 Financial Instruments: 

Disclosures on reclassification of financial assets 

– IFRIC 11, IFRS 2: Group and Treasury Share Transactions 

The principal effects of these changes are as follows: 

Amendments to IAS 39 Financial Instruments: Recognition and Measurement and IFRS 7 Financial Instruments: 

Disclosures on reclassification of financial assets 

The changes to IAS 39 permit an entity to reclassify non-derivative financial assets out of the ‘fair value through profit 

or loss’ and ‘available-for-sale’ categories in limited circumstances. Such reclassifications trigger additional disclosure 

requirements. The Company has not made any reclassification based on this amendment. 

IFRIC 11 IFRS 2: Group and Treasury Share Transactions 

This interpretation requires arrangements whereby an employee is granted rights to an entity‘s equity instruments to be 

accounted for as an equity-settled scheme, even if the entity buys the instruments from another party, or the shareholders 

provide the equity instruments needed. This interpretation had no impact on the financial position of the Company. 

The Company has not early adopted any standards and interpretations where adoption is not mandatory at the balance 

sheet date. 

Issued but not yet effective International Financial Reporting Standards 

At the date of authorization of these financial statements, the following Standards and Interpretations were in issue but 

not yet effective: 

– IFRS 1 First-time Adoption of International Financial Reporting Standards - Amendment relating to cost of an investment 

on first-time adoption (effective for annual periods beginning on or after 1 January 2009) 

– IFRS 2 Share-based Payment - Amendment relating to vesting conditions and cancellations (effective for annual 

periods beginning on or after 1 January 2009) 

– IFRS 3 Business Combinations - Comprehensive revision on applying the acquisition method (effective for annual 

periods beginning on or after 1 July 2009, this revision has not yet been approved by the EU) 

– IFRS 7 Financial Instruments: Disclosures - Amendment enhancing scope of disclosures about fair value and liquidity 

risk (effective for annual periods beginning on or after 1 January 2009) 

– IFRS 8 Operating Segments (effective for annual periods beginning on or after 1 January 2009) 

– IAS 1 Presentation of Financial Statements - Comprehensive revision including requirement for a statement of 

comprehensive income (effective for annual periods beginning on or after 1 January 2009) 

– IAS 1 Presentation of Financial Statements - Amendments relating to disclosure of puttable instruments and obligations 

arising on liquidation (effective for annual periods beginning on or after 1 January 2009) 

– IAS 23 Borrowing Costs - Comprehensive revision to prohibit immediate expensing (effective for borrowing costs relating 

to qualifying assets for which the commencement date for capitalization is on or after 1 January 2009) 

– IAS 27 Consolidated and Separate Financial Statements - Consequential amendments arising from amendments 

to IFRS 3 (effective for annual periods beginning on or after 1 July 2009, these amendments have not yet 

been approved by the EU) 

– IAS 27 Consolidated and Separate Financial Statements - Amendment relating to cost of an investment on firsttime 

adoption (effective for annual periods beginning on or after 1 January 2009) 

– IAS 28 Investments in Associates - Consequential amendments arising from amendments to IFRS 3 (effective for 

annual periods beginning on or after 1 July 2009) 

– IAS 31 Interests in Joint Ventures - Consequential amendments arising from amendments to IFRS 3 (effective for 

annual periods beginning on or after 1 July 2009) 

– IAS 32 Financial Instruments: Presentation - Amendments relating to puttable instruments and obligations arising 

on liquidation (effective for annual periods beginning on or after 1 January 2009) 

23

– IAS 39 Financial Instruments: Recognition and Measurement - Amendments for eligible hedged items (effective for 

annual periods beginning on or after 1 July 2009, these amendments have not yet been approved by the EU) 

– IFRIC 12 Service Concession Arrangements (effective for annual periods beginning on or after 1 January 2008, this 

interpretation has not yet been approved by the EU) 

– IFRIC 13 Customer Loyalty Programmes (effective for annual periods beginning on or after 1 July 2008) 

– IFRIC 14 IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction (effective 

for annual periods beginning on or after 1 January 2008, but not approved by EU until December 2008) 

– IFRIC 15 Agreements for the Construction of Real Estates (effective for annual periods beginning on or after 1 January 

2009, this interpretation has not yet been approved by the EU) 

– IFRIC 16 Hedges of a Net Investment in a Foreign Operation (effective for annual periods beginning on or after 1 October 

2008, this interpretation has not yet been approved by the EU) 

– IFRIC 17 Distributions of Non-cash Assets to Owners (effective for annual periods beginning on or after 1 July 2009, 

this interpretation has not yet been approved by the EU) 

– IFRIC 18 Transfers of Assets from Customers (effective for annual periods beginning on or after 1 July 2009, this 

interpretation has not yet been approved by the EU) 

– Annual Improvements to IFRSs (issued in May 2008) 

The principal effects of these changes are as follows: 

IFRS 2 Share-based Payment - Amendment relating to vesting conditions and cancellations 

This amendment to IFRS 2 – Share-based Payment clarifies the definition of vesting and non-vesting conditions, as well 

as the accounting treatment of cancellations. Management expects that this amendment will have no material impact 

on the Company‘s financial statements. 

IFRS 7 Financial Instruments: Disclosures - Amendment enhancing scope of disclosures about fair value and 

liquidity risk 

This amendment establishes a three-level hierarchy for making fair value measurements: Level 1 - quoted prices, Level 2 

- prices derived from market data, Level 3 - prices not based on market data, along with specific disclosure requirements 

for each class of financial instruments according to the levels. Management expects that, among others, qualitative 

disclosures on determining fair values and maturity analysis for derivative financial liabilities will be added. 

IFRS 8 Operating Segments 

This standard requires disclosure of information about the Company‘s operating segments and replaces the requirement 

to determine primary (business) and secondary (geographical) reporting segments of the Company. Management expects 

that there will be no change in the current disclosures, as the primary business segments determined for reporting 

purposes will qualify as operating segments under the new Standard. 

IAS 23 Borrowing Costs - Comprehensive revision to prohibit immediate expensing 

The standard has been revised to require capitalization of borrowing costs when such costs relate to 

a qualifying asset. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its 

intended use or sale. Management expects that the revision will have no material impact on the financial statements of 

the Company. 

IAS 32 Financial Instruments: Presentation - Amendments relating to puttable instruments and obligations arising 

on liquidation 

This revised standard requires some puttable financial instruments and some financial instruments that impose on the 

entity an obligation to deliver to another party a pro rata share of the net assets of the entity only on liquidation to be 

classified as equity. The amendment will have no impact on the existing financial instruments of the Company. 

IFRIC 12 Service Concession Arrangements 

IFRIC 12 applies to service concession operators between public and private sector and explains how to account for the 

obligations undertaken and rights received in service concession arrangements. The Company is not an operator and 

hence this interpretation will have no impact on the Company. 

24

IFRIC 13 Customer Loyalty Programmes 

IFRIC 13 requires customer loyalty award credits to be accounted for as a separate component of the sales transaction in 

which they are granted and therefore part of the fair value of the consideration received is allocated to the award credits 

and deferred over the period that the award credits are fulfilled. The Company expects that this interpretation will have 

no material impact on the Company’s financial statements. 

IFRIC 14 IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction 

IFRIC 14 provides guidance on how to assess the limit on the amount of surplus in a defined benefit scheme that can be 

recognized as an asset under IAS 19 Employee Benefits. This interpretation will have no impact on the financial position 

or performance of the Company as currently it has no funded defined benefit schemes. 

IFRIC 15 Agreements for the Construction of Real Estates 

IFRIC 15 standardizes accounting practice across jurisdictions for the recognition of revenue by real estate developers 

for sales of units, such as apartments or houses, ‘off plan’ – that is, before construction is complete. This interpretation 

will have no impact on the financial position or performance of the Company. 

IFRIC 17 Distributions of Non-cash Assets to Owners 

IFRIC 17 provides guidance on how an entity should measure distributions of assets other than cash when it pays dividends 

to its owners. This interpretation will have no impact on the financial position or performance of the Company. 

IFRIC 18 Transfers of Assets from Customers 

IFRIC 18 clarifies the requirements of IFRSs for agreements in which an entity receives from a customer an item of 

property, plant, and equipment that the entity must then use either to connect the customer to a network or to provide 

the customer with ongoing access to a supply of goods or services (such as a supply of electricity, gas or water). This 

interpretation will have no impact on the financial position or performance of the Company. 

Annual Improvements to IFRSs (issued in May 2008) 

In May 2008 the IASB issued its first collection of amendments to its standards, primarily with a view to removing inconsistencies 

and clarifying wording. The following standards were amended: 

– IFRS 5 Non-current Assets Held for Sale and Discontinued Operations (effective for annual periods beginning on or 

after 1 July 2009) 

– IAS 1 Presentation of Financial Statements (effective for annual periods beginning on or after 1 January 2009) 

– IAS 16 Property, Plant and Equipment (effective for annual periods beginning on or after 1 January 2009) 

– IAS 19 Employee Benefits (effective for annual periods beginning on or after 1 January 2009) 

– IAS 20 Government Grants and Disclosure of Government Assistance (effective for annual periods beginning on or 

after 1 January 2009) 

– IAS 23 Borrowing Costs (effective for annual periods beginning on or after 1 January 2009) 

– IAS 27 Consolidated and Separate Financial Statements (effective for annual periods beginning on or after 1 January 

2009) 

– IAS 28 Investments in Associates (effective for annual periods beginning on or after 1 January 2009) 

– IAS 29 Financial Reporting in Hyperinflationary Economies (effective for annual periods beginning on or after 

1 January 2009) 

– IAS 31 Interests in Joint Ventures (effective for annual periods beginning on or after 1 January 2009) 

– IAS 36 Impairment of Assets (effective for annual periods beginning on or after 1 January 2009) 

– IAS 38 Intangible Assets (effective for annual periods beginning on or after 1 January 2009) 

– IAS 39 Financial Instruments: Recognition and Measurement (effective for annual periods beginning on or after 

1 January 2009) 

– IAS 40 Investment Property (effective for annual periods beginning on or after 1 January 2009) 

– IAS 41 Agriculture (effective for annual periods beginning on or after 1 January 2009) 

It is anticipated that these changes will have no material effect on the Company’s financial statements. 

25

2.3 SIGNIFICANT ACCOUNTING JUDGEMENTS 

AND ESTIMATES 

Critical judgments in applying the accounting policies 

In the process of applying the accounting policies, management has made certain judgments that have a significant 

effect on the amounts recognized in the financial statements (apart from those involving estimates, which are dealt 

with below). These are detailed in the respective notes, however, the most significant judgments relate to the following: 

Environmental matters 

Existing regulations, especially environmental legislation, do not specify the extent of remediation work required or the 

technology to be applied in resolving environmental damage. Management uses the work of specialists, its previous 

experience and its own interpretations of the relevant regulations in determining the need for environmental provisions. 

Legal claims 

The Company is party to a number of legal proceedings arising in the ordinary course of business. Management uses the 

work of specialists and its previous experience of similar actions in making an assessment of the most likely outcome of 

these actions and of the need for legal provisions. 

Lease arrangements 

The Company has entered into a number of lease arrangements by which it gains the right to use specific assets, primarily 

railway wagons, for extended periods of time. The Company has determined that under these arrangements it takes 

on substantially all the risks and rewards of ownership and so accounts for these arrangements as finance leases. 

The Company has entered into other lease arrangements by which it gains the right to use railway wagons that are owned 

by other transport networks for short-term periods. The Company has determined that under these arrangements it does 

not take on the significant risks and rewards of ownership and so accounts for these arrangements as operating leases 

(these transactions are disclosed in the financial statements as “wagon rentals”). 

Similarly, the Company has entered into lease arrangements by which it leases railway wagons to other transport networks 

and third parties. The Company has determined that under these arrangements it retains the significant risks and 

rewards of ownership and so accounts for these arrangements as operating leases (these transactions are disclosed in 

the financial statements as “wagon rentals”). 

Sources of estimate uncertainty 

The preparation of financial statements in conformity with IFRS requires the use of estimates and assumptions that 

affect the amounts reported in the financial statements and the Notes thereto. Although these estimates are based 

on management’s best knowledge of current events, actual results may defer from these estimates. These issues are 

detailed in the respective notes, however, the most significant estimates comprise the following: 

Quantification and timing of environmental liabilities 

Management makes estimations as to the future cash outflows associated with environmental liabilities using comparative 

prices, analogies to previous similar work and other assumptions. Furthermore, the timing of these cash outflows 

reflects management’s current assessment of priorities, technical capabilities and the urgency of such obligations. The 

estimates made and the assumptions upon which these estimates are made are reviewed at each balance sheet date. 

Impairment of property, plant and equipment 

The Company determines at each reporting date whether there is an indication that items of property, plant and equipment 

are impaired. Where such indications exist, the Company makes an estimate as to the recoverable amount of 

the assets concerned or of the cash-generating unit to which the assets are allocated. In determining value in use the 

Company is required to make an estimate of expected future cash flows and to choose a suitable discount rate in order 

to calculate the present value of those cash flows, while net selling price is determined by reference to market developments 

in Slovakia and other central European countries. 

26

Actuarial estimates applied for calculation of retirement benefit obligations 

The cost of defined benefit plans is determined using actuarial valuations. The actuarial valuation involves making assumptions 

about discount rates, future salary increases and mortality or fluctuation rates. Due to the long-term nature 

of these plans, such estimates are subject to significant uncertainty. 

Depreciable lives and residual values of property, plant and equipment 

Management assigns depreciable lives and residual values to items of property, plant and equipment by reference to 

the organisation’s latest strategic objectives. Management determines at each reporting date whether the assumptions 

applied in making such assignations continue to be appropriate. 

Fair values of derivative financial instruments 

The fair valuation of derivative financial instruments reflects management’s estimates as to future trends in the key drivers 

of such values, including (but not limited to) yield curves, foreign exchange movements and risk-free interest rates. 

2.4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

Foreign currency translation 

The Company’s functional currency has been determined to be the Slovak Crown (SKK), that being the currency of the 

primary economic environment in which the Company operates (but refer to Note 26 for comments on Slovakia’s adoption 

of the Euro on 1 January 2009). 

Transactions in foreign currencies are initially recorded at the functional currency rate ruling at the date of the transaction. 

Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency rate of 

exchange ruling at the balance sheet date. All differences are taken to the income statement. Non-monetary items that 

are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the date of 

the initial transaction. 

Property, plant and equipment 

Property, plant and equipment is stated at cost, excluding the costs of day-to-day servicing, less accumulated depreciation 

and accumulated impairment in value. Such cost includes the cost of replacing part of such property, plant and 

equipment when that cost is incurred, if the recognition criteria are met. 

Maintenance, repairs and minor renewals are charged to the income statement as incurred. 

Depreciation is calculated on a straight-line basis over the useful life of the assets (8-50 years for buildings, 3-40 years 

for machines, equipment and other assets). 

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are 

expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference 

between the net disposal proceeds and the carrying amount of the asset) is included in the income statement in the 

year the asset is derecognised. 

When property, plant and equipment meet the criteria to be classified as held for sale, they are stated at whichever is the 

lower of their carrying amount and fair value less costs to sell and reclassified from non-current to current assets. The 

Company measures an item of property, plant and equipment that ceases to be classified as held for sale at the lower of: 

a) its carrying amount before the asset was classified as held for sale, adjusted for any depreciation and amortisation 

that would have been recognised had the asset not been classified as held for sale, and 

b) its recoverable amount at the date of the subsequent decision not to sell. 

The residual values, useful lives and depreciation methods of property, plant and equipment are reviewed and adjusted, 

if appropriate, at each financial year end. 

27

Intangible assets 

Intangible assets are carried at cost, less accumulated amortisation and any accumulated impairment losses. 

Amortisation is calculated on a straight-line basis over the useful life of the assets (3-8 years). 

Intangible assets are derecognised upon disposal or when no future economic benefits are expected from their use or 

disposal. Any gain or loss arising on derecognition of an asset (calculated as the difference between the net disposal proceeds 

and the carrying amount of the asset) is included in the income statement in the year the asset is derecognised. 

The residual values, useful lives and amortisation methods of intangible assets are reviewed and adjusted, if appropriate, 

at each financial year end. 

Impairment of non-financial assets 

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any such 

indication exists, the Company makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is 

the higher of an asset’s or cash-generating unit’s fair value less costs to sell and its value in use and is determined for 

an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other 

assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered 

impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows 

are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time 

value of money and the risks specific to the asset. 

Impairment losses are recognised in the income statement within depreciation, amortisation and impairment of property, 

plant and equipment and intangible assets. 

An assessment is made at each reporting date as to whether there is any indication that previously recognised impairment 

losses may no longer exist or may have decreased. If such indication exists, the Company makes an estimate of recoverable 

amount. A previously recognised impairment loss is reversed only if there has been a change in the estimates 

used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case the 

carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying 

amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset 

in prior years. 

Such reversal is recognised in the income statement. After such a reversal the depreciation charge is adjusted in future 

periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining 

useful life. 

Inventories 

Inventories are valued at the lower of cost and net realisable value. Cost includes the purchase price of inventory and 

expenses related to the acquisition of inventory (including transportation costs, insurance and customs duties) and is 

accounted for using the weighted average method. 

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs necessary 

to make the sale. 

Allowances for old, obsolete and slow-moving items are booked to reduce the carrying value of these items to net realisable 

value. 

Financial assets 

Initial recognition 

Financial assets within the scope of IAS 39 are classified as financial assets at fair value through profit or loss, loans 

and receivables, held-to-maturity investments, available-for-sale financial assets, or as derivatives designated as hedging 

instruments in an effective hedge, as appropriate. The Company determines the classification of its financial assets 

at initial recognition. 

28

Financial assets are recognized initially at fair value. 

The Company’s financial assets comprise cash at bank and on hand and cash equivalents, trade and other receivables 

and derivative financial instruments. 

Subsequent measurement 

The subsequent measurement of financial assets depends on their classification as follows: 

Financial assets at fair value through profit or loss 

Financial assets at fair value through profit or loss include financial assets held for trading and financial assets designated 

upon initial recognition at fair value through profit or loss. Financial assets are classified as held for trading if they 

are acquired for the purpose of selling in the near term. This category includes derivative financial instruments entered 

into by the Group that do not meet the hedge accounting criteria as defined by IAS 39. Derivates are also classified as 

held for trading unless they are designated as effective hedging instruments. Financial assets at fair value through profit 

and loss are carried in the balance sheet at fair value with gains or losses recognized in the income statement. 

The Company has not designated any financial assets at fair value through profit or loss. 

Loans and receivables 

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an 

active market. After initial measurement loans and receivables are subsequently carried at amortized cost using the effective 

interest rate method less any allowance for impairment. Gains and losses are recognized in the income statement 

when the loans and receivables are derecognized or impaired, as well as through the amortization process. 

Financial liabilities 

Initial recognition 

Financial liabilities within the scope of IAS 39 are classified as financial liabilities at fair value through profit or loss, loans 

and borrowings, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The Company 

determines the classification of its financial liabilities at initial recognition. 

Financial liabilities are recognized initially at fair value and in the case of loans and borrowings, directly attributable 

transaction costs. 

The Group’s financial liabilities include trade and other payables, bank overdrafts, loans and borrowings and derivative 

financial instruments. 

Subsequent measurement 

The measurement of financial liabilities depends on their classification as follows: 

Financial liabilities at fair value through profit or loss 

Financial liabilities at fair value through profit or loss includes financial liabilities held for trading and financial liabilities 

designated upon initial recognition as at fair value through profit or loss. 

Financial liabilities are classified as held for trading if they are acquired for the purpose of selling in the near term. This 

category includes derivative financial instruments entered into by the Company that do not meet the hedge accounting 

criteria as defined by IAS 39. Gains or losses on liabilities held for trading are recognised in the income statement. 

The Company has not designated any financial liabilities at fair value through profit or loss. 

Loans and borrowings 

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the 

effective interest rate method. 

Gains and losses are recognised in the income statement when the liabilities are derecognised as well as through the 

amortisation process. 

29

Trade and other payables 

Trade and other payables are recognized and carried at amortized cost, being original invoice amount. The Company 

accrues for those expenses that have not been invoiced at the balance sheet date. Penalty interest charged on overdue 

payables is recorded within trade payables. 

Fair value of financial instruments 

The fair value of financial instruments that are actively traded in organised financial markets is determined by reference 

to quoted market bid prices at the close of business on the balance sheet date. For financial instruments where there is 

no active market, fair value is determined using valuation techniques. Such techniques may include using recent arm’s 

length market transactions; reference to the current fair vale of another instrument that is substantially the same; discounted 

cash flow analysis or other valuation models. 

Amortised cost of financial instruments 

Amortised cost is computed using the effective interest method less any allowance for impairment and principal repayment 

or reduction. The calculation takes into account any premium or discount on acquisition and includes transaction 

costs and fees that are an integral part of the effective rate. 

Impairment of financial assets 

The Company assesses at each balance sheet date whether there is any objective evidence that a financial asset or a 

group of financial assets is impaired. A financial asset or a group of financial assets is deemed to be impaired if, and 

only if, there is objective evidence of impairment as a result of one or more events that has occurred after the initial 

recognition of the asset (an incurred ‘loss event’) and that loss event has an impact on the estimated future cash flows 

of the financial asset or the group of financial assets that can be reliably estimated. Evidence of impairment may include 

indications that the debtors or a group of debtors is experiencing significant financial difficulty, default or delinquency in 

interest or principal payments, the probability that they will enter bankruptcy or other financial reorganisation and where 

observable data indicate that there is a measurable decrease in the estimated future cash flows, such as changes in 

arrears or economic conditions that correlate with defaults. 

Classification and derecognition of financial instruments 

Financial assets and financial liabilities carried on the balance sheet include cash and cash equivalents, trade and other 

accounts receivable and payable and loans and borrowings. The accounting policies on recognition and measurement 

of these items are disclosed in the respective accounting policies found in this Note. 

Financial instruments (including compound financial instruments) are classified as assets, liabilities or equity in accordance 

with the substance of the contractual agreement. Interest, dividends, gains, and losses relating to a financial 

instrument classified as a liability, are reported as expense or income as incurred. Distributions to holders of financial 

instruments classified as equity are charged directly to equity. In case of compound financial instruments the liability 

component is valued first, with the equity component being determined as a residual value. Financial instruments are 

offset when the Company has a legally enforceable right to offset and intends to settle either on a net basis or to realize 

the asset and settle the liability simultaneously. 

The derecognition of a financial asset takes place when the Company no longer controls the contractual rights that 

comprise the financial asset, which is normally the case when the instrument is sold, or all the cash flows attributable to 

the instrument are passed through to an independent third party. A financial liability is derecognized when the obligation 

under the liability is discharged or cancelled or expires. 

Derivative financial instruments and hedging activities 

The Company uses derivative financial instruments such as forwards, options and swaps to hedge its risks related to 

foreign currency fluctuations. Such derivative financial instruments are initially recognized at fair value on the date on 

which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as assets 

when the fair value is positive and as liabilities when the fair value is negative. 

30

The fair value of forward currency contracts is calculated by reference to current forward exchange rates for contracts 

with similar maturity profiles. The fair value of options and swap contracts is determined by reference to generally recognised 

measurement techniques which incorporate available market data. 

For the purpose of hedge accounting, hedges are classified as cash flow hedges when hedging exposure to variability in 

cash flows attributable to a highly probable forecast transaction. 

At the inception of a hedge relationship, the Company formally designates and documents the hedge relationship to 

which the Company wishes to apply hedge accounting, the risk management objective and the strategy for undertaking 

the hedge. 

The documentation includes identification of the hedging instrument, the hedged item or transaction, the nature of the 

risk being hedged and how the Company will assess the hedging instrument’s effectiveness in offsetting the exposure 

to changes in the hedged item’s fair value or cash flows attributable to the hedged risk. Such hedges are expected to 

be highly effective in achieving offsetting changes in fair value or cash flows and are assessed on an ongoing basis to 

determine that they have been highly effective throughout the financial reporting periods for which they were designated. 

When cash flow hedges meet the strict criteria for hedge accounting, the effective portion of the gain or loss on the 

hedging instrument is recognized directly in equity, while the ineffective portion is recognized in the income statement. 

Amounts taken to equity are recycled to the income statement when the hedged transaction affects profit or loss, that 

being when a forecast sale occurs. If the hedging instrument expires or is sold, terminated or exercised without replacement 

or rollover, or if its designation as a hedge is revoked, the amounts previously recognized in equity are recycled to 

the income statement. 

Cash and cash equivalents 

Cash and cash equivalents comprise cash at bank and in hand and short-term deposits with an original maturity of three 

months or less and that are subject to an insignificant risk of change in value. 

For the purposes of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined 

above, net of outstanding bank overdrafts. 

Employee benefits 

The Company makes contributions to the State health, retirement benefit and unemployment schemes at the statutory 

rates in force during the year, based on gross salary payments. The cost of these payments is charged to the income 

statement in the same period as the related salary cost. The Company has no obligation to contribute to these schemes 

beyond the statutory rates in force. 

Also, the Company operates unfunded long-term defined benefit programmes comprising lump-sum post-employment, 

jubilee and disability benefits. The cost of providing these employee benefits is assessed separately for each programme 

using the projected unit credit method, by which the costs incurred in providing such benefits are charged to the income 

statement so as to spread the cost over the service lives of the Company’s employees. The benefit obligation is measured 

as the present value of the estimated future cash outflows. 

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged 

or credited to the income statement when incurred. Amendments to these long-term defined benefit programmes are 

charged or credited to the income statement over the average remaining service lives of the related employees. 

Provisions 

A provision is recognized when the Company has a present obligation (legal or constructive) as a result of a past event 

and it is probable (i.e. more likely than not) that an outflow of resources embodying economic benefits will be required 

to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at 

each balance sheet date and adjusted to reflect the current best estimate. The amount of the provision is the present 

value of the risk adjusted expenditures expected to be required to settle the obligation, determined using the estimated 

risk free interest rate as discount rate. Where discounting is used, the carrying amount of provision increases in each 

period to reflect the unwinding of the discount by the passage of time. This increase is recognized as an interest expense. 

31


Liabilities for environmental costs are recognized when environmental clean-ups are probable and the associated costs 

can be reliably estimated. Generally, the timing of these provisions coincides with the commitment to a formal plan of 

action or, if earlier, on divestment or on closure of inactive sites. The amount recognized is the best estimate of the 

expenditure required. 

Legal claims 

Liabilities arising from litigation and disputes are recognized when an outflow of resources embodying economic benefits 

is probable and when such outflows can be reliably measured. 

Termination payments 

The employees of the Company are eligible, immediately upon termination due organizational changes, for redundancy 

payment pursuant to the Slovak law and the terms of the Collective Agreement between the Company and its employees. 

The amount of such a liability is recorded as a provision in the balance sheet when the workforce reduction program is 

defined, announced and the conditions for its implementation are met. 

Leases 

The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement 

and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or 

assets and the arrangement conveys a right to use the asset. 

As Lessee 

Finance leases, which transfer to the Company substantially all the risks and benefits incidental to ownership of the 

leased item, are capitalised at the inception of the lease at the fair value of the leased property or, if lower, at the present 

value of the minimum lease payments. Lease payments are apportioned between the finance charges and reduction of 

the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges 

are charged directly against income. 

Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset and the lease term. 

Operating lease payments are recognised as an expense in the income statement on a straight-line basis over the 

lease term. 

As Lessor 

Leases where the Company does not transfer substantially all the risks and benefits of ownership of the asset are classified 

as operating leases. Rental income is recognised on a straight-line basis over the lease term. 

Revenue recognition 

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the 

revenue can be reliably measured. Revenue is measured at the fair value of the consideration received, excluding discounts, 

rebates and sales taxes. 

Revenue from transport and related services and from repair and maintenance and other such services is recognized in 

the period in which the services are provided, net of discounts and deductions. 

Borrowing costs 

Borrowing costs are recognised as an expense when incurred. 

32

Taxes 

Current income tax 

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be 

recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that 

are enacted or substantively enacted at the balance sheet date. 

Deferred income tax 

Deferred income tax is provided using the liability method on temporary differences at the balance sheet date between 

the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. 

Deferred tax liabilities are recognised for all taxable temporary differences. 

Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax credits 

and unused tax losses to the extent that it is probable that taxable profit will be available against which the deductible 

temporary differences and the carry-forward of unused tax credits and unused tax losses can be utilised. 

The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent 

that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax 

asset to be utilised. Unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised 

to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered. 

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when 

the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively 

enacted at the balance sheet date. 

Deferred income tax relating to items recognised directly in equity is recognised directly in equity and not in the income 

statement. 

33

3. TRANSPORT AND RELATED REVENUES 

In million of Slovak crowns 31 December 2008 31 December 2007 

Inland transport: 

Transport of goods 1,371 1,571 

Wagon deposition 514 591 

Haulage fees 32 40 

1,917 2,202 

International transport: 

Import 4,553 4 464 

Export 3,853 4 175 

Transit 1,216 1 494 

9,622 10,133 

Other transport related revenues: 

Usage of wagons under RIV, RUW and GCU regimes 148 74 

Wagon rentals 299 237 

Border services 130 142 

Other 112 59 

689 512 

12,228 12,847 

Included in transport and related revenues are amounts invoiced to Express Slovakia of SKK 2,357 million (2007: SKK 

2,636 million) and to US Steel Košice of SKK 2,183 million (2007: SKK 2,543 million). 

4. OTHER REVENUES 


Repairs and maintenance 1,062 1,086 

Operational performance 266 288 

Property rentals 89 77 

Other 242 182 

1,659 1,633 

Included in other revenues are amounts charged to ZSSK of SKK 1,360 million (2007: SKK 1,555 million) for repair 

and maintenance, operational performance, property rental and other support services. 

34

5. CONSUMABLES AND SERVICES 


Network fees (4,080) (4,809) 

Traction electricity (1,127) (1,054) 

Traction diesel oil (569) (577) 

Other energy costs (246) (209) 

Materials (685) (722) 

Wagon rentals (513) (500) 

IT services and telecommunication charges (277) (317) 

Border services (134) (167) 

Rentals (113) (110) 

Third party loading services (87) (64) 

Security services (66) (67) 

Repair and maintenance (63) (54) 

Advisory and consultancy fees (61) (36) 

Travelling and entertainment (55) (55) 

Cleaning (45) (47) 

Training (19) (26) 

Medical care (13) (25) 

Other (143) (140) 

(8,296) (8,979) 

Included in consumables and services are amounts charged by ŽSR of SKK 5,426 million (2007: SKK 6,235 million), 

primarily relating to the usage of ŽSR’s network (the Company has a one year contract with ŽSR which specifies 

planned kilometres and charge rates for different types of transport) and also to the purchase of traction energy (refer 

to Note 22). 

6. STAFF COSTS 


Wages and salaries (2,709) (2,632) 

Social security costs (1,156) (1,103) 

Employee benefits (Note 19) 97 (139) 

Termination payments (Note 20) (19) 38 

(3,787) (3,836) 

Average employee numbers were 10,499 (2007: 10,969), of whom eight were members of management (as members 

of the Board of Directors or directors of individual departments). 

The average salary amounted to SKK 22,337 (2007: SKK 20,638). 

35

7. OTHER OPERATING INCOME / (EXPENSES), NET 


Provision for environmental matters (Note 20) 82 (127) 

Gains on sale of property, plant and equipment 46 53 

Provision for legal cases (Note 20) 31 (23) 

Allowance for doubtful debts (48) (9) 

Insurance of assets (37) (26) 

Other (1) (79) 

73 (211) 

8. FINANCE INCOME 


Foreign exchange gains, net 268 128 

Interest revenue 2 2 

270 130 

Foreign exchange gains, net include unrealised foreign exchange gains and losses of SKK 116 million and SKK 29 million, 

respectively, resulting from the recalculation of assets and liabilities denominated in EUR at 31 December 2008 

(refer to comment on Euro conversion (note 26). 

9. FINANCE COSTS 


Interest expense (405) (423) 

Other (6) (4) 

(411) (427) 

10. GAINS ON FINANCIAL DERIVATIVES, NET 


Unrealised gains (losses) on open financial derivatives 6 (9) 

Realised gains on closed financial derivatives 56 152 

62 143 

The Company enters into financial derivative contracts to hedge against the foreign exchange risk on forecast sales. 

Where the contracts meet the strict criteria for hedge accounting set out in IAS 39, the changes in intrinsic values are 

recognised within equity. Where the strict criteria are not met, gains and losses are recognised in the income statement, 

with gains of SKK 6 million being recognised in 2008 (losses of SKK 9 million in 2007). 

Realised gains on closed financial derivatives of SKK 56 million and SKK 152 million represent the change in fair values 

of trading derivatives closed in 2008 and 2007, respectively. 

36

In addition, included in transport and related revenues is an amount of SKK 393 million partly recycled from equity 

relating to expired financial derivative contracts recognised within equity at 31 December 2007 (SKK 139 million in 

prior period). 

11. INCOME TAX 

A reconciliation between the reported income tax expense and the theoretical amount that would arise using the 

standard rates is as follows: 


Profit / (loss) before tax 83 (252) 

Tax (charge) / credit at statutory tax rate of 19% 16 (48) 

Effect of tax loss not assessable for tax release 277 - 

Change in valuation allowance (349) 61 

Non-deductible expenses 56 13 

Total income tax - - 

Deferred tax assets and liabilities at 31 December related to the following: 


Deferred tax assets 

Tax loss carryforwards 981 995 

Provision for environmental matters 224 257 

Impairment of property, plant and equipment 221 167 

Provisions for employee benefits 71 92 

Allowance for trade and other receivables 34 31 

Other 36 37 

1,567 1,579 

Deferred tax liabilities 

Accelerated depreciation for tax purposes (1,061) (667) 

Revaluation of financial derivatives to fair value - (57) 

(1,061) (724) 

Valuation allowance (506) (855) 

Net deferred tax assets (liabilities) - - 

A valuation allowance of SKK 506 million (SKK 855 million at 31 December 2007) has been recognised for temporary 

deductible differences due to uncertainty as to the realization of tax benefits in future years. The Company will continue 

to assess the valuation allowance and, to the extent it is determined that such allowance is no longer required, the tax 

benefits of the remaining deferred tax assets will be recognised at that time. 

37

The Company’s income tax loss carryforwards arose in the fiscal years 2004-2008 and amount to SKK 5,163 million, 

of which SKK 1,312 million arose in the predecessor company, ŽS. Under Slovak tax legislation a company is entitled to 

carry forward taxable losses incurred over the previous five fiscal years for offset against future taxable profits. The carry 

forwards expire as follows: 


2008 - 1,459 

2009 1,312 1,312 

2010 1,114 1,114 

2011 273 273 

2012 1,081 1,081 

2013 1,383 - 

Total tax loss carry forwards 5,163 5,239 

12. INTANGIBLE ASSETS 


Development 

cost Software 

Assets under 

construction 

Total 

Acquisition cost 

At 1 January 2008 - 392 49 441 

Additions - - 182 182 

Disposals - - (1) (1) 

Transfers - 58 (58) - 

At 31 December 2008 - 450 172 622 

Accumulated amortisation 

At 1 January 2008 - (37) (1) (38) 

Charge for the period - (49) - (49) 

Impairment loss - - 1 1 

At 31 December 2008 - (86) - (86) 

Net book value at 31 December 2008 - 364 172 536 


Development 

cost Software 

Assets under 

construction 

Total 


At 1 January 2007 9 106 184 299 

Additions - - 151 151 

Disposals (9) - - (9) 

Transfers - 286 (286) - 

At 31 December 2007 - 392 49 441 

Accumulated amortisation 

At 1 January 2007 (8) (17) (25) 

Charge for the period - (20) - (20) 

Disposals 8 - - 8 

Impairment loss - - (1) (1) 

At 31 December 2007 - (37) (1) (38) 

Net book value at 31 December 2007 - 355 48 403 

38

13. PROPERTY, PLANT AND EQUIPMENT 


Land and 

buildings 

Machines, 

equipment, 

other assets 

Assets under 

construction 

Total 


At 1 January 2008 3,824 19,676 284 23,784 

Additions - - 3,095 3,095 

Disposals (22) (296) (6) (324) 

Transfers 32 2,903 (2,935) - 

At 31 December 2008 3.834 22.283 438 26.555 

Accumulated depreciation 

At 1 January 2008 (831) (4,014) (21) (4,866) 

Charge for the period (67) (1,395) - (1,462) 

Disposals 18 218 5 241 

Impairment loss (14) (421) - (435) 

At 31 December 2008 (894) (5,612) (16) (6,522) 

Net book value at 31 December 2008 2,939 16,671 422 20,033 


Land and 

buildings 

Machines, 

equipment, 

other assets 

Assets under 

construction 

Total 


At 1 January 2007 3,789 18,109 88 21,986 

Additions - - 1,774 1,774 

Disposals (4) 28 - 24 

Transfers 39 1,539 (1,578) - 

At 31 December 2007 3,824 19,676 284 23,784 

Accumulated depreciation 

At 1 January 2007 (643) (2,667) (22) (3,332) 

Charge for the period (78) (1,208) - (1,286) 

Disposals 11 (60) 1 (48) 

Impairment loss (121) (79) - (200) 

At 31 December 2007 (831) (4,014) (21) (4,866) 

Net book value at 31 December 2007 2,993 15,662 263 18,918 

Included within land and buildings are halls used in the repair of locomotives and wagons, depots, stores, workshops 

and administrative buildings; and included within machines, equipment and other assets are locomotives and wagons, 

cranes, trucks, cars and other vehicles, tools and equipment used in repair and maintenance, boilers and other heating 

equipment and office equipment, including computers, printers and other IT equipment. 

At 31 December 2008, after concluding that the consequences of the global credit crisis provided both external and 

internal indicators that the Company’s property, plant and equipment might be impaired, management performed a 

comprehensive impairment test. This test comprised a review of the condition and usage of all property, plant and equipment, 

and resulted in the recognition of an additional impairment loss of SKK 435 million, primarily for wagons. The 

assets’ recoverable amounts were determined by reference to fair value less costs to sell on an asset by asset basis, with 

value in use being determined to be zero or close to zero. 

39

The loss, reported net of the reversal of an impairment loss of SKK 34 million recognised in prior years in respect of 

specific wagons, is recognised in the income statement within depreciation, amortisation and impairment of property, 

plant and equipment and intangible assets. 

Within property, plant and equipment are wagons acquired by means of finance lease with an aggregate value of SKK 

2,490 million (SKK 964 million at 31 December 2007). 

Property, plant and equipment in the ownership of the Company with a value of SKK 542 million (SKK 542 million at 31 

December 2007) is registered by the State as protected for cultural purposes. 

Property, plant and equipment are insured against (i) natural disaster, (ii) theft and vandalism and (iii) machinery (all 

risk cover). Risks (i) and (ii) are covered to a maximum of SKK 10,000 million (SKK 6,200 million in 2007) and (iii) to a 

maximum of SKK 16,900 million (SKK 4,000 million in 2007). In addition, motor vehicles have third party and accident 

insurance cover, the cost of which is immaterial. 

14. INVENTORIES 


Electrical materials 274 202 

Machine and metal-working materials 344 343 

Chemicals and rubber 49 88 

Diesel fuel 30 30 

Protective tools 16 17 

Other 19 17 

Allowance for slow moving and obsolete inventories (92) (126) 

640 571 

15. TRADE AND OTHER RECEIVABLES 


Domestic trade receivables 1,510 1,680 

Foreign trade receivables 609 777 

VAT receivables 229 142 

Other receivables 178 74 

Financial derivatives (Note 25) 6 311 

Allowance for impaired trade and other receivables (179) (161) 

2,353 2,823 

At 31 December 2008 overdue receivables amounted to SKK 480 million (SKK 369 million at 31 December 2007). 

Trade receivables are non-interest bearing and are generally on 30-90 days’ terms. 

For details of related party receivables, refer to Note 23. 

40

16. CASH AND CASH EQUIVALENTS 

For the purposes of the cash flow statement, cash and cash equivalents comprise the following: 


Cash at banks and on hand and cash equivalents 104 37 

Bank overdrafts (489) (1,060) 

(385) (1,023) 

Cash at banks earns interest at floating rates based on daily bank deposit rates. 

Bank overdrafts as of 31 December are as follows: 

31 December 2008 31 December 2007 


Overdraft limit Drawn down Overdraft limit Drawn down 

Všeobecná úverová banka, a.s. 500 - 400 - 

Tatra banka, a.s. 900 34 900 77 

UniCredit Bank Slovakia a.s. 530 115 530 429 

Citibank (Slovakia) a.s. 400 114 400 128 

Slovenská sporiteľňa, a.s. 600 57 400 101 

Dexia banka Slovensko a.s. 400 169 400 325 

Calyon S.A., pobočka zahr. banky 100 - 100 - 

3,430 489 3,130 1,060 

17. SHAREHOLDER’S EQUITY 

Registered capital 

Registered capital represents the State’s investment in the Company, held through MTPT, made through the contribution 

of certain assets and liabilities of the Company’s predecessor, ŽS, and comprises 121 registered ordinary shares, each 

with a face value of SKK 100 million. All of these shares are issued and fully paid. 

Legal reserve fund 

On the Company’s incorporation, in accordance with Slovak legislation, a legal reserve fund was established at 10% of 

the Company’s registered capital, again through an in-kind contribution. Slovak legislation requires that the legal reserve 

fund be increased by amounts at least equal to 10% of annual net profit up to an amount equal to 20% of the Company’s 

registered capital. Under the Company’s Articles of Association, the legal reserve fund is not available for distribution and 

can only be used to cover losses or increase registered capital. 

Other funds 

Other funds represent the difference between the value of the assets and liabilities contributed by the State on the 

Company’s incorporation and through an additional capital contribution made on 2 November 2005 and that of the 

Company’s registered capital and legal reserve fund, adjusted by an amount of SKK 127 million to restate an error in the 

initial valuation of the assets contributed by the State identified in 2006. 

During 2008 the Company received an additional capital contribution of SKK 366 million from MTPT, this being a previously 

unpaid part of the initial equity contribution made on the Company’s incorporation. In addition, the Company 

was awarded penalty interest of SKK 266 million to compensate for the late payment of this contribution, and this is 

disclosed in the income statement within finance income. 

Other reserves 

Other reserves represent cash flow hedges which meet the criteria for hedge accounting (see Note 25). 

41

Distribution of loss from previous accounting period 

The distribution of the 2007 statutory loss was approved by the Company’s General Meeting on 19 June 2008 and was 

booked to accumulated losses. 

18. INTEREST-BEARING LOANS AND BORROWINGS 

In million of Slovak crowns Maturity date 31 December 2008 31 December 2007 

Long-term loans 

Secured 

Express Slovakia 21 February 2012 714 885 

Slovenská sporiteľňa, a.s. (EUR) 30 September 2010 211 - 

Všeobecná úverová banka, a.s. 27 November 2010 500 - 

Unsecured 

ČSOB,a.s. (EUR) 30 September 2012 525 732 

Dexia banka Slovensko a.s. (EUR) 31 May 2010 167 311 

Dexia banka Slovensko a.s. 31 December 2015 692 - 

Slovenská sporiteľňa, a.s. (EUR) 31 May 2010 167 311 

Všeobecná úverová banka, a.s. (EUR) 05 December 2008 - 306 

Express Interfracht 01 January 2009 - 122 

Calyon (EUR) 31 December 2008 - 65 

Total 2,976 2,732 

Short-term portion of loans (648) (1,051) 

Long-term portion of loans 2,328 1,681 

Short-term loans 

Secured 

Citibank (Slovakia) a.s. (EUR) 24 July 2009 238 - 

Citibank (Slovakia) a.s. (EUR) 25 July 2008 - 265 

Tatra banka, a.s. (EUR) 30 April 2009 573 - 

Tatra banka, a.s. 30 April 2009 200 750 

UniCredit Bank Slovakia a.s. (EUR) 30 September 2009 395 - 

UniCredit Bank Slovakia a.s. 30 September 2009 - 460 

Calyon S.A., pobočka zahr. banky (EUR) 30 November 2009 328 434 

Slovenská sporiteľňa, a.s. (EUR) 30 September 2008 - 87 

Short-term loans 1,734 1,996 

Short-term portion of loans (see above) 648 1,051 

Overdrafts (Note 16) 489 1,060 

Total 2,871 4,107 

All loans are denominated in Slovak crowns, except as otherwise noted in the table above. 

All loans described as secured in the table above, other than the Express Slovakia loan, are secured by promissory notes 

with a value of SKK 2,188 million (SKK 2,134 million at 31 December 2007), and with a nominal value of SKK 3,770 

million (SKK 2,785 million as of 31 December 2007). The Express Slovakia loan is secured on various wagons, each 

assigned a value of SKK 2,380 thousand in the respective guarantee agreement. 

42

Under the terms of certain loan agreements the Company is required to meet a number of financial and non-financial 

covenants, which include the maintenance of an interest coverage ratio in excess of 1.2 and a debt service ratio of less 

than 75%. All loan covenants are based on the Company’s management accounts (as the Company no longer prepares 

Slovak GAAP financial statements). The Company was in compliance with these covenants at 31 December 2008 and 

31 December 2007. 

The fair value of interest-bearing loans and borrowings amounts to SKK 2,979 million (SKK 4,260 million at 31 December 

2007). 

All interest-bearing loans and borrowings bear interest at floating rates which range from 2.68% to 6.225% (3.97% to 

5.84% in 2007), except for the loan provided by Express Slovakia which bears interest at fixed rate of 12.75%. 

19. EMPLOYEE BENEFITS 


Retirement 

benefits 

Jubilee 

payments 

Disability 

benefits 

Total 

At 1 January 2008 355 103 27 485 

Current service cost 2 6 - 8 

Interest cost 15 4 1 20 

Actuarial gains / (losses) on obligation (105) (17) (3) (124) 

Utilization (4) (8) (4) (16) 

Past service cost - - - - 

At 31 December 2008 263 89 21 373 

Current 31 December 2008 3 11 4 18 

Non-current 31 December 2008 260 78 17 355 

At 31 December 2008 263 89 21 373 


Retirement 

benefits 

Jubilee 

payments 

Disability 

benefits 

Total 

At 1 January 2007 276 33 37 346 

Current service cost 25 5 - 30 

Interest cost 12 1 2 15 

Actuarial gains / (losses) on obligation - 6 (8) (2) 

Utilization (3) (7) (4) (14) 

Past service cost 45 65 - 110 

At 31 December 2007 355 103 27 485 

Current 31 December 2007 4 8 4 16 

Non-current 31 December 2007 351 95 23 469 

At 31 December 2007 355 103 27 485 

The principal actuarial assumptions used were as follows: 

2008 2007 

Discount rate (% p.a.) 4.2 4.2 

Future salary increases (%) 3 5 – 6.4 

Mortality probability (male) (%) 0.03 – 3.14 0.03 – 3.14 

Mortality probability (female) (%) 0.02 – 1.33 0.02 – 1.33 

43

20. PROVISIONS 

In million of Slovak crowns Environmental Legal Terminations Total 

At 1 January 2008 1,351 183 45 1,579 

Additions - 13 20 33 

Reversals (82) (44) - (126) 

Utilization (90) (5) (23) (118) 

At 31 December 2008 1,179 147 42 1,368 

Current 31 December 2008 51 - 42 93 

Non-current 31 December 2008 1,128 147 - 1,275 

At 31 December 2008 1,179 147 42 1,368 

In million of Slovak crowns Environmental Legal Terminations Total 

At 1 January 2007 1,231 160 83 1,474 

Additions 126 30 45 201 

Reversals - - (40) (40) 

Utilization (6) (7) (43) (56) 

At 31 December 2007 1,351 183 45 1,579 

Current 31 December 2007 - - 45 45 

Non-current 31 December 2007 1,351 183 - 1,534 

At 31 December 2007 1,351 183 45 1,579 


During 2008, the Company updated their analysis of potential breaches of environmental regulations at its various sites, 

with the support of a specialist organisation, Centrum environmelntalnych sluzieb, s.r.o. (previously operating under the 

name, Life & Waste, s.r.o.). As a result of this analysis, and based on the findings of Centrum environmelntalnych sluzieb, 

s.r.o., the Company estimates that, after utilising SKK 90 million of the provision brought forward, further operating 

expenditures of SKK 1,179 million (SKK 1,351 million at 31 December 2007) will be required to remedy the significant 

issues relating to water, oil and fuel management identified previously. In consequence, an amount of SKK 82 million 

was released from the provision for environmental matters. 

In addition, the Company estimates that capital expenditures of SKK 238 million (SKK 238 million at 31 December 

2007) will be required to ensure that the Company complies with environmental legislation, as disclosed in Note 22. 

Legal claims 

Provisions for legal claims relate to several legal actions, most of which were initially filed against the Company’s predecessor, 

ŽS. The provision includes an amount of SKK 90 million relating to a series of proceedings brought by the Antimonopoly 

Office (“AMO”) which has issued judgments against the Company for alleged abuse of its dominant market 

position. The Company has appealed against the AMO judgements, but management has decided to provide in full for 

the penalties imposed by AMO believing that the evidence currently available indicates that an outflow of economic 

resources represents the most likely outcome. 

44

Termination payments 

The Board of Directors approved a programme for the reduction of total headcount from 2008 through 2010. A detailed 

plan was prepared for 2009 terminations, specifying the locations and positions of the employees involved, and this envisages 

a reduction of 500 in total employee numbers. The full cost of the 2009 termination plan has been recognised 

in the current period. 

No provision was created for 2010 terminations as the recognition conditions were not met. 

21. TRADE AND OTHER PAYABLES, 

AND OTHER NON-CURRENT LIABILITIES 


Domestic trade payables 1,846 1,707 

Foreign trade payables 581 577 

Payables due to employees 240 245 

Payables due to social institutions 135 144 

Financial derivatives (Note 25) - 9 

Other payables 226 147 

3,028 2,829 

At 31 December 2008 overdue trade payables amounted to SKK 809 million (SKK 629 million at 31 December 2007). 

For details of related party payables, refer to Note 23. 

The social fund payable is included in other non-current liabilities. Movements in the social fund during the period 

are shown in the table below: 


At 1 January 5 10 

Additions 27 26 

Utilization (27) (31) 

At 31 December 5 5 

45

22. COMMITMENTS AND CONTINGENCIES 

Finance lease commitments 

At 31 December 2008 the Company has finance lease commitments relating to the acquisition of 973 wagons 

(524 at 31 December 2007). All leases are on a fixed repayment basis with interest rates fixed at the contract date. 

Future minimum lease payments under finance leases, together with the present value of net minimum lease payments 

are as follows: 


Minimum 

lease 

Present 

value of 

Minimum 

lease 

Present value 

of payments 


payments payments payments 

Within one year 320 207 102 89 

After one year but not more than five years 1,117 895 215 187 

More than five years 837 802 180 172 

Total minimum lease payments 2,274 1,904 497 448 

Less: future finance charges (370) - (49) - 

Present value of minimum lease payments 1,904 1,904 448 448 

Capital commitments 

The Company’s capital expenditure plans for the period 1 January 2008 to 31 December 2012 are as follows: 


Land and buildings 36 356 

Machines, equipment and other assets 1,885 5,309 

Intangible assets 182 369 

2,103 6,034 

Of the total balance above, capital expenditures of SKK 1,222 million (SKK 1,889 million at 31 December 2007) are 

committed under contractual arrangements. 

Included above are planned capital expenditures of SKK 238 million (SKK 238 million at 31 December 2007) required 

to address specific breaches of environmental legislation identified by the relevant authorities. 

Contingencies 

A former supplier of the Company’s legal predecessors, ŽSR and ŽS, has commenced an action against the Company in 

respect of unpaid advance invoices and related penalty interest. Similar actions are being taken by several other parties 

to whom the original receivables were ceded. The total value of the claims (principal) against the Company is estimated 

at approximately SKK 322 million (SKK 286 million at 31 December 2007). Management believe that these actions are 

unfounded as the supplier failed to meet the contractual conditions and, supported by their legal advisors, believe that 

the likelihood of these actions succeeding is remote: accordingly, no provision for any liability has been made in these 

financial statements. 

46

As explained in Notes 5 and 23, the Company purchases traction electricity from ŽSR. The contract is renewed on an 

annual basis and specifies delivery conditions and the method applied for determining the volume of traction electricity 

used. Contract negotiations regarding the provision of traction electricity for 2008 were completed by 30 June 2008, 

based on which the Company made regular prepayments to ŽSR. However, the agreement reached was not finalised in 

written form and on 2 December 2008 the Company received a contract from ŽSR that contained a different method for 

determining the volume of electricity used, to be applied retrospectively from 1 January 2008. In addition, in the cover 

letter sent with the contract ŽSR stated that, in the event that the Company would not sign the contract, they would 

impose penalties at a rate applicable for the unauthorised consumption of traction electricity. The Company formally 

rejected the new contract terms in a letter sent to ŽSR and MTPT on 18 December 2008. ŽSR did not accept the Company’s 

arguments and on 6 February 2009 issued a catch-up invoice in the amount of SKK 398 million for the usage 

of traction electricity. This amount exceeds the figure accrued by the Company on the basis of the earlier negotiations 

by SKK 370 million. On 10 February 2009 the Company rejected the invoice received. As management believe that the 

actions of ŽSR are inappropriate and, supported by their legal advisors, that the likelihood of ŽSR succeeding in a legal 

action against the Company is remote, no provision for the difference of SKK 370 million between the amount accrued 

by the Company and the amount charged by ŽSR has been made in these financial statements. 

23. RELATED PARTY DISCLOSURES 

Related parties of the Company have been identified as all companies under common ownership (meaning under 

the control of the State) and the Board of Directors. 

The following tables provide the total amount of transactions which have been entered into with related parties for 

the years ended 31 December 2008 and 2007: 

31 December 2008 


Sales 

to related 

parties 

Purchases 

from related 

parties 

Amounts owed 

by related 

parties 

Amounts owed 

to related 

parties 

ŽSR 100 5,426 47 508 

ZSSK 2,067 59 544 8 

Slovenský plynárenský priemysel - 15 - 1 

Other related parties - 89 36 6 

31 December 2007 


Sales 

to related 

parties 

Purchases 

from related 

parties 

Amounts owed 

by related 

parties 

Amounts owed 

to related 

parties 

ŽSR 114 6,235 24 805 

ZSSK 1,920 36 482 6 

Slovenský plynárenský priemysel - 63 - 10 

Other related parties - 13 - 1 

The Company’s major contractual relationships with ŽSR and ZSSK are for fixed one year periods and are subject to an 

annual renewal process. Purchases from ŽSR include primarily network fees and traction electricity. Sales to ŽSR comprise 

transport services, while sales to ZSSK include primarily the repair of passenger wagons and track vehicles and 

the sale of diesel oil. 

47

Company’s bodies 

The Company’s bodies as registered in the Commercial Register at the District Court Bratislava I at 31 December 2008 

are as follows: 

Board of Directors 

Supervisory Board 

Chairman: Mgr. Matej Augustín Chairman: JUDr. Zdeněk Schraml 

Vice chairman: Ing. Anton Jaborek Vice chairman: Ing. Peter Kubala 

Member: Dipl. Ing. Ján Simčo Member: Mgr. Jozef Schmidt 

Member: Ing. Jaroslav Bajužik Member: Mgr. Imrich Sloboda 

Member: Ing. Jozef Pavúk Member: Ing. Igor Krško 

Member: 

Dr. Ing. Peter Schlosser 

Emoluments of the members of the Board of Directors and Supervisory Board 

The Board of Directors’ total remuneration approximated SKK 1 million (SKK 1 million in 2007). The total remuneration 

of members of the Supervisory Board amounted to SKK 1 million (SKK 1 million in 2007). 

Loans granted 

No loans have been granted to key management and members of the Board of Directors and Supervisory Board. 

24. FINANCIAL RISK MANAGEMENT 

The Company’s principal financial liabilities, other than derivatives, comprise interest-bearing loans and borrowings, 

overdrafts and trade payables. The main purpose of these financial liabilities is to raise finance for the Company’s operations. 

The Company has various financial assets such as trade and other receivables and short-term deposits, which 

arise directly from its operations. 

The Company also enters into derivative transactions, including forwards, options and swaps, to manage the currency 

risks arising from its operations. 

The main risks arising from the Company’s financial instruments are cash flow foreign currency risk, interest rate risk, 

liquidity risk and credit risk. The Board of Directors reviews and agrees policies for managing each of these risks which 

are summarised below. The Company’s accounting policies in relation to derivatives are set out in Note 2.4. 

Foreign currency risk 

The Company enters into various types of foreign exchange contracts in managing its foreign exchange risk resulting 

from cash flows from its business activities, financing arrangements denominated in foreign currencies and certain 

transactional exposures. In particular, the Company has significant Euro denominated sales and interest-bearing loans 

and borrowings. 

The Company follows the basic economic currency risk management principle that the currency mix of the debt portfolio 

should reflect the net operating cash flow position of the Company, constituting a natural hedge. In addition, foreign 

exchange risk is mitigated by entering into currency forward and option contracts to match the terms of the hedged item 

to maximize hedge effectiveness. 

48

The table below contains a sensitivity analysis on the foreign currency risk arising from a 5% strengthening or weakening 

of the Slovak crown against relevant foreign currencies, with all other variables held constant. The estimated 

impact on profit before taxes is disclosed for a 12 month period after the reporting date. There is no impact on the 

Company’s equity. 


USD (+5%) - 2 

USD (-5%) - (2) 

CHF (+5%) 2 2 

CHF (-5%) (2) (2) 

Interest rate risk 

The Company’s exposure to the risk of changes in market interest rates relates to the Company’s long-term and shortterm 

borrowing obligations and overdrafts with floating interest rates. The Company has a broad portfolio of borrowings 

bearing a range of fixed and floating interest rates. 

The following table demonstrates the sensitivity of the Company’s profit before taxes for the period of 12 months after 

the reporting date to a reasonable change in interest rates of 50 basis points higher/lower, with all other variables held 

constant. There is no impact on the Company’s equity. 


EURIBOR (+0,5%) 17 11 

EURIBOR (-0,5%) (17) (11) 

BRIBOR (+0,5%) - 6 

BRIBOR (-0,5%) - (6) 

Liquidity risk 

The Company’s policy is to maintain sufficient cash and cash equivalents or have available funding through an adequate 

number of credit facilities to cover the liquidity risk in accordance with its financing strategy. The amounts 

available in the form of credit facilities as at 31 December 2008 and 2007 consist of following: 


Long-term loan facilities available 276 94 

Short-term loan facilities available 565 478 

Total loan facilities available 841 572 

As at 31 December 2008 the Company made use of bank payment guarantees of SKK 53 million (88 million as at 31 

December 2007) and banks custom guarantees of SKK 56 million (56 million as at 31 December 2007). 

49

The table below summarises the maturity profile of the Company’s financial liabilities at 31 December 2008 based on 

contractual undiscounted payments. 


On demand 

Less then 3 

months 

From 3 to 

12 months 

From 1 to 5 

years 

Over 5 

years Total 

Long-term loans - 81 567 2,130 198 2,976 

Trade and other payables 1,768 1,260 - - - 3,028 

Short-term loans - 169 2,054 - - 2,223 

1,768 1,510 2,621 2,130 198 8,227 

The table below summarises the maturity profile of the Company’s financial liabilities at 31 December 2007 based on 

contractual undiscounted payments. 


On demand 

Less then 3 

months 

From 3 to 

12 months 

From 1 to 5 

years 

Over 5 

years Total 

Long-term loans - 152 899 1,681 - 2,732 

Trade and other payables 626 1,826 377 - - 2,829 

Short-term loans - 325 2,731 - - 3,056 

626 2,303 4,007 1,681 - 8,617 

Credit risk 

The Company provides a variety of customers with products and services, none of whom, based on volume and creditworthiness, 

present a significant credit risk, individually or in aggregate. The Company’s procedure is to ensure that sales 

are made to customers with appropriate credit histories and that acceptable credit limits are not exceeded. 

The book value of financial assets, including derivative financial instruments, recognised in the balance sheet reduced 

by impairment provisions reflects the Company’s maximum exposure to credit risk. 

Capital management 

The primary objective of the Company’s capital management is to ensure that it maintains a strong credit rating and 

healthy capital ratios in order to support its business and maximise shareholder value. 

The Company manages its capital structure, and makes adjustments to it, in light of changes in economic conditions. 

No changes were made in the objectives, policies or processes during the years ended 31 December 2008 and 31 

December 2007. 

50

The Company monitors indebtedness using a debt service ratio, which is calculated as debt consisting of interest-bearing 

loans and borrowings divided by total equity. The debt service ratio was considered low in 2008 and 2007. 


Long-term debt, net of current portion 2,328 1,681 

Short-term debt, including current portion of long-term debt 2,871 4,107 

Debt 5,199 5,788 

Equity 11,834 11,616 

Debt service ratio (%) 44% 50% 

25. FINANCIAL INSTRUMENTS 

Fair values of financial instruments 

Financial instruments in the balance sheet include trade and other receivables, cash and cash equivalents, interestbearing 

loans and borrowings, finance leases and trade and other payables. Market values have been used to determine 

the fair value of financial instruments. The estimated fair values of these instruments approximate their carrying 

amounts, except for interest-bearing loans and borrowings (see Note 18). 

Hedging activities 

The Company has designated certain derivative instruments as cash flow hedges (forwards and options) to hedge 

against changes in the amount of future cash flows of the Company’s commitments. 

The fair values of derivatives are based on closing market prices at the balance sheet date and are summarised in the 

table below: 



Positive Negative Positive Negative 

FX forwards 6 - 61 - 

FX options - - 244 (9) 

MM swaps - - 6 - 

6 - 311 (9) 

At 31 December 2007 the Company had designated certain derivative instruments listed in the table above as cash flow 

hedges to hedge against changes in the cash flows of expected future sales; these hedges were assessed to be highly 

effective and an unrealised gain of SKK 231 million was included in equity as at 31 December 2007. None of the Company’s 

derivative instruments were designated as cash flow hedges at 31 December 2008. 

No cash flow hedges were discontinued during the year because it was probable that the original forecasted transaction 

would not occur by the end of the originally specified time period. 

51

26. EVENTS AFTER THE BALANCE SHEET DATE 

With the introduction of the Euro as the official currency of the Slovak Republic on 1 January 2009, the Company’s 

functional currency changed from the Slovak Crown to Euro as at that date. The change in the functional currency was 

implemented prospectively and the Company’s assets, liabilities and equity were converted into Euro based on the official 

conversion rate of €1 = SKK 30.1260. The change did not affect the financial position of the Company. 

The Company spent an amount of SKK 12 million in connection with the introduction of the Euro, of which SKK 10 million 

relates to the modification of information systems. 

Long-term financial assistance of SKK 5,000 million (EUR 166 million) to support the Company’s operations was approved 

by the government on 4 March 2009. The Company received these funds in April 2009. Under the terms of the 

agreement entered into with the Ministry of Finance, the financial assistance is to be repaid in full by February 2019, with 

the first principal repayment being due in February 2011. 

52

ORGANISATION STRUCTURE AS 31. 12. 2008 

General Assembly 

Supervisory Board 

Board of Directors 

Internal Audit 

CEO and Chairman of the Board 

of Directors 

Head of CEO office 

Legal services 

Department 

Inspection and 

crises management 

Department 

Strategy Department 

Human resources 

management 

Department 

Crises management 

Unit 

HR services Section 

Security and health 

protection Unit 

Trade Division 

Operation Division 

Services Division 

Rolling stock 

services Division 

Economy 

Department 

Wages Centre Unit 

Marketing Section 

Trade development and 

product portfolio Unit 

Sales Section 

Customer services 

Section 

Trade support Unit 

Guidelines 

and tariff rates Unit 

Back office Unit 

Guidelines and tariff 

rates Unit 

Intermodal 

transportation 

Section 

Railway transport 

security Unit 

Section of technical 

and technological 

preparation 

of operations 

Strategy and technical 

investments development 

operations Unit 

Operations planning 

Unit 

Operations efficiency 

analyses Unit 

Operations and 

transportation 

Section 

Transportation 

dispatching Unit 

Transportation Unit 

Transport execution 

Section 

Traction management Unit 

Technical operations of waggon 

management Unit 

East Slovak 

Transshipment 

Section 

Technological 

transahipment Unit 

Technical-technological 

transshipment infrastructure 

Unit 

Facility managment 

Section 

Efficiency facility Unit 

Facility management 

and investments Unit 

Investments and Repairs Unit 

Logistics Section 

Management of logistic 

network Unit 

Procurement 

and Purchase Unit 

Stock Holding Unit 

Fleet of vehicles Unit 

Power station Unit 

ICT Section 

IT Operation Unit 

Maintenance 

and repairs 

trade Section 

Marketing on 

maintenancenand repairs 

of rolling stock Unit 

Trade on maintenance 

and repairs of rolling 

stock Unit 

Rolling stock 

maintenance 

and repairs Section 

Management on maintenance 

and repairs of rolling 

stock Unit 

Technical and technological 

safety on infrastructure 

of maintenance and repairs Unit 

Technical development 

and administration of 

rolling stock Section 

Unit for modernisation 

and reconstruction 

of rolling stock 

Unit for administration 

of rolling stock 

Economy Department 

Projekt Management Office 

(PMO) 

Control Section 

Accounting taxes 

and Reporting Section 

Accounting Unit 

Treasury Section 

Cash-Flow Administration Unit 

Rail clearing 

centre Section 

Input and international 

transportation price 

calculation Units 

International transportation 

claiming Unit 

Domestic transportation 

input control Unit 

International transportation 

accounting Unit 

Transportation accounting 

and clearing Unit 

Control and methodology 

Unit 

Operative Operations 

Managment Section 

Transport Dispatching Unit 

Wagons Managment Unit 

Transportation Planning 

and CIS States Relations Unit 

53

CONTACTS 


Drieňová 24 

820 09 Bratislava 

tel.: 02/20 29 77 76 

fax: 02/43 42 03 89 

e-mail: cargo.gr@zscargo.sk 

www.zscargo.sk 

FOREIGN REPRESENTATION: 

General Agency in Vienna 


General Agency in Austria 

Ing. Jozef GAZDA CSc. 

Parkring 12, 1010 Wien 

Tel. Nr, public: 004315128974 

Tel. Nr, railway: 907-180-111044 

Fax Nr: 00431512897475 

Cell: 00436764310086 

E-mail: jozef.gazda@utanet.at 

General Agency in Lvov 


General Agency in Ukraine 

Ing. Jozef VIRBA 

Gogoľa 1, 290 604 Ľvov 

Tel. Nr, public: 00380322971198 

Fax Nr: 00380322971198 

Cell: 00380503173568 

E-mail: railway1@complex.lviv.ua 

General Agency in Warsaw 


General Agency in Poland 

Mgr. Ivan RUŽBACKÝ 

Aleje Jerozolimskie 125/127 

02-017 Warszawa 

Tel. Nr, public: 0048 22 699 7262 

Fax Nr: 0048 22 699 7262 

Cell: 0048 605 980 771 

E-mail: zsskwa@gazeta.pl 

54


Drieňová 24, 820 09 Bratislava 

www.zscargo.sk

zssk ENG.indd - ZSSK Cargo

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