TVK Annual Report 2010 (pdf, 2.5 MB)

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Consolidated statement of changes in equity 31 December 2010 Consolidated statement of cash-flows 31 December 2010 Opening balance 1 January 2009 Share capital HUF million Share premium HUF million Retained earnings HUF million Translation reserve HUF million Total reserves HUF million Net income attributable to equity holders of the parent HUF million Total equity attributable to equity holders of the parent HUF million Non-controlling interest HUF million Total equity HUF million 24,534 15,022 109,097 34 124,153 (146) 148,541 - 148,541 Currency translation differences - - - 30 30 - 30 - 30 Total comprehensive income and expense for the year recognized directly in equity - - - 30 30 - 30 - 30 Retained profit for the year - - - - - (9,192) (9,192) - (9,192) Total comprehensive income and expense for the year - - - 30 30 (9,192) (9,162) - (9,162) Transfer to reserves of retained profit for the previous year - - (146) - (146) 146 - - - Dividends - - (1,992) - (1,992) - (1,992) - (1,992) Closing balance 31 December 2009 24,534 15,022 106,959 64 122,045 (9,192) 137,387 - 137,387 Currency translation differences - - - 24 24 - 24 - 24 Total comprehensive income and expense for the year recognized directly in equity - - - 24 24 - 24 - 24 Retained profit for the year - - - - - (1,170) (1,170) - (1,170) Total comprehensive income and expense for the year - - - 24 24 (1,170) (1,146) - (1,146) Transfer to reserves of retained profit for the previous year - - (9,192) - (9,192) 9,192 - - - Dividends - - - - - - - - - Closing balance 31 December 2010 24,534 15,022 97,767 88 112,877 (1,170) 136,241 - 136,241 2010 2009 HUF million HUF million Profit before tax (1,989) (9,276) Adjustments to reconcile profit before tax to net cash provided by operating activities Depreciation and impairment 12,599 12,061 Amortization and impairment 413 548 Write-off of inventories, net 151 (394) Increase/(decrease) in environmental provisions 59 (592) Increase/(decrease) in provisions 57 75 Net (gain) / loss on sale of tangible assets (673) (965) Assigned receivables 1 - Write-off of receivables 22 112 Unrealised foreign exchange (gain) / loss on receivables and payables (242) (84) Interest income (192) (535) Interest on borrowings 1,288 1,486 Net foreign exchange (gain)/ loss excluding foreign exchange differences on receivables and payables 1,181 305 Other financial (gain) / loss, net 266 264 Share of net (profit)/loss of associates (18) 71 Operating cash flow before changes in working capital 12,923 3,076 (Increase)/ decrease in inventory (2,535) (286) (Increase)/ decrease in debtors (6,244) (6,447) (Increase)/ decrease in other receivables (1,464) (6,718) Increase/(decrease) in accounts payable 5,206 18,528 Increase/(decrease) in other current liabilities 2,816 (1,588) Income taxes paid 1,534 (1,710) Net cash provided by operating activities 12,236 4,855 Purchase of Property, Plant and Equipments (7,594) (8,639) Proceeds from disposals of fixed assets 698 1,582 Loans and long-term bank deposits 893 9,271 Liabilities by CO2 emission quotas - 4,283 Proceeds from liquidation of investments - - Proceeds from disposal of other investments - (7) Interest received and other financial income 206 584 Dividends received - - Net cash used in investing activities (5,797) 7,074 Proceeds from issue of new debts 42,995 - Repayments of long-term debt (56,851) (333) Increase/(Decrease) in short-term debt 7,387 (7,840) Increase/(Decrease) in other financial liabilities - (3) Interest paid and other financial costs (1,860) (1,379) Dividends paid to non-controlling interest and payment on liquidation - (1,991) Financial and operational performance Net cash provided by financing activities (8,329) (11,546) (Decrease)/increase in cash and cash equivalents (1,890) 383 Cash and cash equivalents at the beginning of the year 6,942 6,545 Cash and cash equivalents at the end of the year 5,052 6,928 44 TVK Annual Report 2010 45
Consolidated subsidiaries Notes Notes to the consolidated financial statements prepared in accordance to the consolidated with International financial Financial statements Reporting prepared Standards 31 December in accordance 2010 with International Financial Reporting Standards 1. Presentation of The Group Structure Background to the consolidated companies TVK Plc. Company name TVK Ingatlankezelő Kft. TVK Italia Srl. TVK UK Ltd.* TVK Inter-Chemol GmbH TVK France S.a.r.l. TVK Erőmű Kft.** TVK Polska Spzoo TVK Ukraina tov Tisza WTP Kft.*** Country Hungary Italy United Kingdom Germany France Hungary Poland Ukraine Hungary Range of activity Property leasing, management Wholesale and retail trade Wholesale and retail trade Wholesale and retail trade Wholesale and retail trade Electricity production and distribution Wholesale and retail trade Wholesale and retail trade Feed water and raw water Ownership 31 Dec 2010 Ownership 31 Dec 2009 Consolidation Method 31 Dec 2010 100% 100% Full consolidation 100% 100% Full consolidation 100% 100% Full consolidation 100% 100% Full consolidation 100% 100% Full consolidation 26% 26% Full consolidation 100% 100% Full consolidation 100% 100% Full consolidation 0% 0% Full consolidation * Dissolution started on 1 July, 2009 ** The ownership of TVK Plc. is 26%. Based on the syndicated agreement TVK Plc. fully consolidated it - as a special purpose entity - in 2010 and 2009. *** Tisza-Wtp Kft. was formed in 2002 specifically for providing feed water and raw water to TVK Plc. and TVK Erőmű Kft. under a long-term co-operation agreement. Tisza WTP Kft. has been consolidated by the Company since 1 January 2006 in accordance with SIC 12. According to service agreement Tisza WTP Kft. provides services that is consistent with the Group’s ongoing major operations and TVK Group is the exclusive purchaser of services provided by Tisza WTP. 2. Authorization, statement of compliance and basis of preparation i) Authorization and Statement of Compliance These consolidated financial statements have been approved and authorized for issue by the Board of Directors on 17 March 2011. These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and all applicable IFRSs that have been adopted by the EU. IFRS comprise standards and interpretations approved by the International Accounting Standards Board (“IASB”) and the International Financial Reporting Interpretations Committee (“IFRIC”). Financial and operational performance Tiszavidéki Vegyi Kombinát, TVK’s legal predecessor was founded in 1953. In 1961 it was transformed into a stateowned company called Tiszai Vegyi Kombinát (the “state-owned company”). Prior to its privatisation, the state-owned company was incorporated as a public limited liability company on 31 December 1991 (the “Company”). In accordance with the law on the transformation of unincorporated state-owned enterprises, the assets and liabilities of TVK were revalued as at that date. As at 31 December 1995, the Company was 99.92% owned by the Hungarian State Privatisation and Holding Company (“ÁPV Rt.”) and the remaining 0.08% was owned by local municipalities. In 1996, the Company was privatised through an offering of shares owned by ÁPV Rt. to foreign and domestic institutional and private investors. Following this privatisation, shares of the Company were listed on the Budapest Stock Exchange and Global Depository Receipts (“GDRs”) representing the shares were listed on the London Stock Exchange. As of 31 December 2010, MOL Plc. holds the majority of the shares. The Company, with its registered seat in Tiszaújváros (H-3581 Tiszaújváros, TVK-Ipartelep TVK Központi Irodaház 2119/3. hrsz. 136. épület), produces chemical raw materials including ethylene, propylene and polymers of these products for both domestic and foreign markets. The Group had 1,140 and 1,167 employees as at 31 December 2010 and 2009, respectively. Effective 1 January 2005, the change in the Hungarian Accounting Act allows the Group to prepare its consolidated financial statements in accordance with IFRS that have been adopted by the EU. Curently, due to the endorsement process of the EU, and the activities of the Group, there is no difference in the policies applied by the Group between IFRS and IFRS that have been adopted by the EU. ii) Basis of preparation These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards and IFRIC interpretations issued and effective on 31 December 2010. The Group has early adopted IFRS 3 Business Combinations (Revised) and IAS 27 Consolidated and Separate Financial Statements in 2009 in advance of their effective date (1 July 2009). TVK Plc. prepares its statutory unconsolidated financial statements in accordance with the requirements of the accounting regulations contained in Law C of 2000 on Accounting (HAS). Some of the accounting principles prescribed in this law differ from International Financial Reporting Standards (IFRS). For the purposes of the application of the Historical Cost Convention, the consolidated financial statements treat the Company as having come into existence as of 31 December 1991, at the carrying values of assets and liabilities determined at that date, subject to the IFRS adjustments. The financial year is the same as the calendar year. 46 TVK Annual Report 2010 47
Page 1 and 2: TVK Annual Report 2010 TVK Annual R
Page 3 and 4: Review of the year of the year Revi
Page 5 and 6: Mission Our company offers petroche
Page 7 and 8: Chairman’s letter letter Review o
Page 9 and 10: usinesses Our businesses Our busine
Page 11 and 12: Consolidated Consolidated companies
Page 13 and 14: Polymer production The total polyme
Page 15 and 16: Financial and Financial and operati
Page 17 and 18: TVK Group consolidated audited figu
Page 19 and 20: Headcount Full Time Employees Decem
Page 21 and 22: This is a translation of the Hungar
Page 23: Consolidated income statement 31 De
Page 27 and 28: assets (including previously unreco
Page 29 and 30: comprehensive income. Impairment lo
Page 31 and 32: xix) Leases The determination wheth
Page 33 and 34: IFRS 3 Business Combinations Amendm
Page 35 and 36: 5. Property, plant and equipment Th
Page 37 and 38: 10. Other current assets Other curr
Page 39 and 40: 15. Provision for liabilities and c
Page 41 and 42: 23. Other operating expenses 25. In
Page 43 and 44: The net book value and fair value o
Page 45 and 46: 29. Related party transactions Tran
Page 47 and 48: Key Corporate Data Key Corporate Da
Page 49 and 50: Sustainability report report Sustai
Page 51 and 52: • The projects started in 2009 ha
Page 53 and 54: Future challenges 2011 Economic sus
Page 55 and 56: In order to implement the above TVK
Page 57 and 58: Fire safety Prevention of fire and
Page 59 and 60: Our sponsorship focuses on the regi
Page 61 and 62: Safety 2005 2006 2007 2008 2009 201
Page 63 and 64: the Annual General Meeting in 2006,
Page 65 and 66: Remuneration of the members of the
Page 67 and 68: 1. 5. 2. 3. 6. 1. MOSONYI, György
Page 69 and 70: KEMÉNYNÉ ÚJVÁRI, Ildikó Member
Page 71 and 72: TVK Plc. has no treasury shares. Sh
Page 73 and 74: Shareholder information Head office

TVK Annual Report 2010 (pdf, 2.5 MB)

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