ANNUAL REPORT - HSE

European Investment Bank (EIB) signed a € 74 million
loan agreement for the financing of the construction
of HPP Blanca and HPP Krško.
At the end of the financial year 2008, the HSE Group’s
financial liabilities totalled € 335.8 million, of which
long-term financial liabilities accounted for 86% and
short-term financial liabilities for 14%. The long-term
financing to assets ratio of the HSE Group stood at
108%. Loans were taken out in the national currency
and were thus not exposed to the currency risk. The
majority of the loans have a variable interest rate.
Management of financial risks
In the risk management process, particular attention
was paid to the interest rate risk, credit risk, currency
risk and solvency risk. Liquidity risk was effectively
managed by monitoring and optimising short-term
cash surpluses and deficits of HSE Group companies.
As part of the interest rate risk management, derivative
financial instruments offered by banks were used
to change a portion of variable interest rates on longterm
loans into fixed interest rates. Due to changes
in the money market brought about by the global financial
crisis, most interest rate hedging contracts
were cancelled early in 2008. The company's largest
net currency exposure is the exposure to the euro.
The volume of transactions in other currencies is
negligible, so the currency risk is very small. Interest
rate and currency risk are also managed through the
constant monitoring of developments in the European
and global money market.
Balance sheet structure of the HSE Group and the controlling company
as at 31/12/2008
HSE group
100
80
60
40
20
0
18 %
82 %
12 %
88 %
Assets
Liabilities
Current
Long-term
ANNUAL REPORT HSE | BUSINESS REPORT
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