annUaL rEporT 2008 - Česká rafinérská, as

Report of the Board of Directors of ČESKÁ RAFINÉRSKÁ, a.s.
on Business Activities and State of Assets in 2008
The previous year represented an important stage in increasing the competitiveness and the
implementation of certain legislative requirements regarding the quality of automobile fuels
for ČESKÁ RAFINÉRSKÁ, a.s. (hereinafter also the “Company”). For the Company, the
year 2008 meant already the 6th year of “Processing”, under which the Company charged the
subsidiaries of its shareholders – the Processors, “Processing Fees”. All market and price
risks regarding both raw materials and finished products are borne by the
Shareholders/Processors. Irrespective of the manner of its operation, the Company
continuously pays attention to safety of operations, availability/reliability of equipment,
availability of required products, employee training, in time and economical implementation
of the approved capital investment programme, and optimum operating costs.
The Company entered the year 2008 with a number of goals and tasks set by its shareholders.
The most important of them covered the following areas.
• Further strengthening of its activities extended in the area of “Health and Safety at
Work”, both in respect of the employees of the Company and in respect of its
contractors. The required indicator (TRIR) may not have been achieved, but the trend
prevailing in the previous years was successfully reversed and safety performances
(which rank among the best in the Czech Republic) improved significantly.
• The highest planned quantity of processed crude oil in the history of the Company.
The target was met despite difficulties accompanying crude oil supplies via the
Druzhba oil pipeline. These difficulties were overcome with cooperation from the
suppliers and the companies in charge of carrying crude oil.
• The implementation of the required level of the Solomon Indices within the projects
“Solomon Gap – Road Map”. This task was implemented only in part, its completion
will be a key requirement for 2009.
• Preparation of a periodical shutdown of the Kralupy refinery planned in the spring of
2009 within an almost 5-year cycle. It is proceeding in accordance with the time and
material plans.
• Continuation of the projects aimed at the improved management and performance of
the Company with the goal of achieving certain tangible results (“quick wins”) both in
the areas covered by HMR, BIC II, as well as in the areas of reduced waste, emissions,
and energy consumption. This was implemented in part. The projects are continuing.
• Settlement of the main bankruptcy proceedings and their consequences. This task was
concurrently implemented in keeping with the ongoing bankruptcy proceedings, in
particular, the largest receivable originating in the period before transfer to
“Processing” was settled.
• Sufficient amounts of cash available to the Company. This task has been implemented,
subject to payment of the dividends from the profit generated in 2007.
• Implementation of the EU requirements regarding “Clean Fuels 2009” and the Czech
national legislation regarding bio-fuels. The production of automobile fuels with
sulphur content below 10 ppm was launched. The market was supplied with
automobile fuels pursuant to EN 590 and 229 with the average content of bio-
ANNUAL REPORT ČESKÁ RAFINÉRSKÁ, a.s., 2008 2