ANNUAL REPORT - KORADO, as

COMPANY HISTORY
1965 Panel radiator production is launchedat the former
KOVENTA plant.
1970 Multi-point welding line for radiator production is put
in operation.
1987 First welding line made by SCHLATTER is installed;
radiator innovation and substantial reduction in required
manual labour; increased work productivity.
1988 New paint shop put into operation resulting in major
quality improvement in radiator surface finishing.
1990 KORADO, s.r.o., a private limited liability company,
is founded with share capital of CZK 100 thousand;
the Company’s founders are existing shareholders
František MENCLÍK, Ludvík PETR, Miroslav VOBO-
RA and Ing. Bedřich BRABEC.
1991 KOVENTA is privatized via auction; the plant is modernized
and production launched, production
capacity is increased and non-stop operation introduced.
1992 Innovation of panel radiators; product range expanded
to include special radiators.
1993 All bank loans facilitating the purchase of the plant
are repaid; new investment projects provide for maximum
production capacity; the subsidiary KORADO
Polska is founded.
1994 First significant increase in share capital to CZK
5 million.
1995 Business plan is drafted for green-field construction
of a new KORADO plant; the subsidiary KORADO
Deutschland is founded.
1996 Transformation into a joint stock company coupled
with a share capital increase to CZK 880 million; construction
of a new KORADO plant commences at the
cost of nearly CZK 3 billion; other subsidiaries and
companies under substantial influence established:
KORADO Moscow, KORADO Baltija, KORADO Brod
and KORADO Bulgaria; purchase of a majority stake
in transport company S.A.S. a.s.
1997 The European Bank for Reconstruction and Development
(EBRD) acquires a stake in the Company;
share capital increase to CZK 1,580 billion; ISO
9001 certification obtained; launch of production in
the newly-built Česká Třebová production plant.
1998 Acquisition of a 99% stake in a production plant in
Bulgaria and its full consolidation.
1999 Transfer of KORADO’s credit from Česká spořitelna
to Konsolidační banka Praha, s.p.ú. (KOB).
2000 Restructuring of the Company’s loan portfolio by
KOB; significant reduction in interest rate payments
coupled with financial stabilization; share capital reduction
by accumulated loss of previous years in the
amount of CZK 1,027 million; subsequent share capital
increase by CZK 287.7 million to CZK 840.7 million,
performed by KOB in the form of capitalization.
2002 Significant turnaround in Company business – after
four consecutive loss-making years, KORADO, a.s.,
turns profit of CZK 31 million. Restructuring of the
major subsidiaries KORADO Polska, KORADO Austria
and KORADO Deutschland aimed at boosting
return on capital investments in these companies.
2003 Search for a strategic investor launched in 2001
ends without partner selection; increased participation
of the key shareholder, the European Bank
for Reconstruction and Development, in Company
management; KORADO Group posts a consolidated
profit of CZK 57 million and is in the black for the
first time ever.
2004 All loans provided by ČKA redeemed; switch to HVB
Bank Czech Republic (today UniCredit Bank Czech
Republic); the Company records an all-time high in
profit before tax amounting to CZK 375 million.
2005 Significant debt reduction to less than CZK 1 billion.
Year-on-year revenues drop to the 2003 figure. Major
growth in material costs.
2006 For the first time in its history, the Company manufactures
more than 2 million radiators; production of
plastics spun off into an independent company that
is subsequently sold off; sale of the S.A.S. subsidiary;
investment decision made to install a fourth production
line.
2007 Investment into the fourth welding line and related
technology worth almost CZK 700 million commences.
Restructuring of KORADO’s largest subsidiary,
KORADO Bulgaria, resulting in fundamental change
to the subsidiary’s management system.KORADO
records the highest revenues in its history: CZK
2.725 billion.
2008 Completion of investment into fourth welding line
and related technology and introduction into operation.
This was the second largest investment in KO-
RADO’s history and the most extensive investment
project since construction of a new plant in 1997.
Steel prices soar to all-time highs. A sharp drop in
sales in Q4 as a result of the global economic downturn.
The KORADO Baltija subsidiary is sold.
2009 Adverse impact of global economic crisis results in
a 24 % decline in revenues year-on-year. Rigorous
optimization of working capital, significantly improving
the Company’s financial position.Substantial
debt reduction to an all-time low; a 40 % year-on-year
decrease in bank loans.
2010 Due to the continued international economic crisis,
sales decline a further 9 %. All Group loans are refinanced
by a single bank. New capillary fitting technology
for KORALUX radiator panels is installed.
Annual Report 2010
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