yearly report 2013 - alta invest · mining technological systems remain especially important. this...

YEARLYREPORT2013

Contents

ALTA Group 1–7 / Information on the ALTA Group / Our vision / Foreword by the Chairman of the Board of Directors / Group structure / Group Management

Economics 9–11 / Financial indicators / Economic results / Financing

Trade and production 13–17 / Mechanical engineering / Mining technologies / Technological projects / Raw materials and materials / Fuel cycle of nuclear power plants

Internal control and internal audit 18Research and development, technologies and innovations 19Social responsibility 20Fundamental information on the company 21Corporate economics 22–23

Addresses and contact details 27–28

Information on the ALTA Group

ALTA is a modern, dynamically developing business-industrial group, active on the market in the Czech Republic and abroad.

Since its foundation, ALTA, established in 1991 as a limited liability company, has focused its international trade operations on the countries of the central and eastern Europe. At the time of its foundation, export activities were focused on supply of technological systems, machining equipment, machinery products, construction material manufacturing equipment and equipment used for mining and processing of ore and rock. Import operations were dominated by iron ore raw materials and also mechanical engineering products.

In 1994, ALTA was transformed into a joint stock company. The holding structure of the ALTA Group was completed in 2011.

The ALTA Group consists of the parent company ALTA Invest, a.s. and its domestic and international daughter companies, offering a wide range of business, engineering, manufacturing and financial services in many indus-trial areas:

/ ALTA, a.s. offers and provides top quality business, design, engineering and financial services. / The companies TOS KUŘIM - OS, a.s., ČKD BLANSKO-OS, a.s., ŠKODA MACHINE TOOL a.s. and SE-MI

Technology, a.s., represent an important manufacturing and design basis of the ALTA Group in the area of machining equipment and equipment for deep and surface mining operations.

/ ALVEL, a.s. companies (JV TVEL 2012) and DMS s.r.o. offer first-class scientific-engineering-logistics services in the field of nuclear engineering.

/ The companies ALTA RUS, ALTA URAL and ALTA UKR are among the most important foreign subsidiaries of the ALTA Group.

/ ALTA CZ, a.s. focuses its operations on support activities within the ALTA Group.

Our vision

The ALTA Group strives to remain a good and reliable partner for its suppliers, customers and employees. The foundation stone of the ALTA Group is honesty, reliability, loyalty and quality of work. The ALTA Group strives to be an example of social responsibility and environmental consciousness. We believe that we can achieve solid relations with our partners, investors and customers by adhering to these values.

ALTA Group

Motto:

The success achieved over more than 20 years of hard and diligent work allows us to look at the current situation of the European and the global economy, in particular,

as a new challenge and opportunity.

1ALTA GROUP

Foreword by the Chairman of the Board of Directors

Dear business partners and friends,

The significant growth of the ALTA Group turnover in 2013 was positively affected by the successful completion of major projects – upgrade of the Ashinsky Metallurgical Plant and supply of the complete brick production line for OOO KKI Klincy in the Russian Federation, while the restart of the European economy played a favourable role. In 2013, ALTA devoted increased attention to the preparation of new contracts, including an increase in the proportion of smaller projects worth millions and tens of millions of EUR.

We are aware of the potential continuously represented by the Russian Federation, Kazakhstan, Belarus, Ukraine and other CIS countries. This is the reason why we have been working systematically on further consolidation of our position in these markets. Recent acquisitions in the field of manufacturing and engineering represent new additional opportunities for the Group. We strive to extend export operations to other markets, exports to India are growing, we are expanding our operations in Turkey.

Among the fundamental segments of the activities pursued by the ALTA Group, mechanical engineering and mining technological systems remain especially important. This concerns above all the supply of equipment for the field of heavy engineering, machine tools, mining equipment and the supply of “turnkey” technological systems. Among other things we see new opportunities in the area of complex power engineering projects. The traditional segment of activity is represented by imports of raw materials, iron ore, fuel cells, etc.

We place permanent emphasis on sustained competitiveness. Due to the technical development departments of the member companies, the Group has highly qualified teams of employees specializing in research and development. Our cooperation with universities and basic research institutions is of a long-term nature – the Faculty of Mechanical Engineering at the Czech Technical University in Prague, the Brno University of Technology, ÚJV ŘEŽ and others.

The ALTA Group, through its activity so far, has proven capable of achieving success and has shown that it is well versed in the ever-changing market conditions and able to respond to them. We have extensive experience, unique know-how, a high-quality production basis and we employee highly qualified specialists.

We are looking for further cooperation with our traditional and new partners.

Vladimír PlašilChairman of the Board of Directors of ALTA Invest, a.s.

3ALTA GROUP

Group structure

ALTA Invest, a.s.

BUSINESS

ALTA, a.s. / Brno

ALTA RUS / Moscow

ALTA URAL / Yekaterinburg

TRANSPORT – 21 VEK / Yekaterinburg

ALTA UKR / Kiev

MACHINING EQUIPMENT

ŠKODA MACHINE TOOL a.s. / Plzeň

TOS KUŘIM - OS, a.s. / Kuřim

ČKD BLANSKO-OS, a.s. / Kuřim

ENERGETIKA KUŘIM, a.s. / Kuřim

TOS NOVA – Výzkum, a.s. / Kuřim

SE-MI Technology, a.s. / Ostrava

MINING EQUIPMENT

ALVEL, a.s. / Prague

DMS s.r.o. / Dukovany (incl. merger ALTA 32, s.r.o.)

POWER ENGINEERING

ALTA CZ, a.s. / Brno

SERVICE SUPPORT GROUPS

4 YEARLY REPORT 2013

Board of Directors of ALTA Invest

Vladimír Plašil – Chairman of the Board of Directors, within the framework of the Group responsible for strategy and communication.

Bronislav Šimek – Deputy Chairman of the Board of Directors, within the framework of the Group responsible for business activity in the CIS.

Lubomír Fabík – Deputy Chairman of the Board of Directors, Chief Executive Officer of ALTA, a.s. and ALTA CZ, a.s., within the framework of the Group responsible for the economy and finance.

5ALTA GROUP

Group Management (as of 1. 7. 2014)

ALTA Invest, a.s.Vladimír Plašil – Chairman of the Board of DirectorsLubomír Fabík – Deputy Chairman of the Board of DirectorsBronislav Šimek – Deputy Chairman of the Board of Directors

ALTA, a.s.Lubomír Fabík – Chief Executive Officer, ALTA, a.s.Bronislav Šimek – Manager of the Business Division, ALTA, a.s.Martin Pecina – Manager of the Business Division, ALTA, a.s.Radek Pecina – Manager of the Mining Technologies Division, ALTA, a.s.Miloš Kruták – Manager of the Technological Projects Division, ALTA, a.s.Josef Běláč – Manager of the Fuel cycle Division, JE ALTA, a.s.Pavel Petlák – Manager of the Power Engineering Division, ALTA, a.s.Gennady Sharonov – Manager of the Metallurgy Division, ALTA, a.s.Josef Jančařík – Chief Economic Officer, ALTA, a.s.Inez Krautmannová – Manager of the ALTA Group Project Financing Tomáš Juřík – Chief Financial Officer, ALTA, a.s.

ALTA CZ, a.s.Lubomír Fabík – Chief Executive Officer, ALTA CZ, a.s.Hana Kuncová – Executive Manager, ALTA CZ, a.s.Jozef Abrahám – Chief Financial Officer of the ALTA GroupMartin Dvořák – Manager of the IT division of the ALTA GroupAntonín Murgaš – Chief Promotion Officer, Public Relations Officer of the ALTA Group

ŠKODA MACHINE TOOL a.s.Miroslav Bičiště – Chief Executive Officer, ŠKODA MACHINE TOOL a.s.Luboš Janoušek – Chief Sales Officer, ŠKODA MACHINE TOOL a.s.

TOS KUŘIM - OS, a.s.Miroslav Chmelka – Chief Sales Officer, TOS KUŘIM - OS, a.s. and ČKD BLANSKO-OS, a.s.

SE-MI Technology, a.s.Jiří Valenta – Director, SE-MI Technology, a.s.

ALVEL, a.s.Josef Běláč – Chief Executive Officer, ALVEL, a.s.Vlastimil Vrána – Chief Sales Officer, ALVEL, a.s.

DMS s.r.o.Lukáš Hurdálek – Chief Executive Officer, DMS s.r.o.Ferdinand Szemla – Executive Manager of DMS s.r.o.

7ALTA GROUP

Financial indicators

Total Assetsin thousands of CZK

2012 / 10 257 024

2013 / 9 728 862

Total equityin thousands of CZK

2012 / 1 299 733

2013 / 1 597 191

Salesin thousands of CZK

2012 / 10 811 809

2013 / 12 487 740

Gross incomeafter taxesin thousands of CZK

2012 / 137 338

2013 / 304 424

9 ECONOMICS

Consolidated economic results of the ALTA Group fully reflect the circumstances of 2013 in the consolidation unit comprising of 17 companies. Considering the results reported by the Group, it can be said that the conse-quences of the crisis of the recent years were successfully overcome and the group maintained a significant position in its business line. The ALTA Group succeeded in completing the tasks planned for 2013 and estab-lished a good basis for successful implementation of tasks and plans for 2014. The consolidated revenues from sales of the ALTA Group pursuant to the International Financial Reporting Stand-ards (IFRS) amounted to MCZK 12,488 and the consolidated profit after tax totalled TCZK 304,424. The operating profit/loss for 2013 amounted to TCZK 507,532. Since 2013, the Group has changed its income reporting. The income from sales of goods and services includes the revenues for sales of material. Cost structure is presented in more detail. The costs are divided according to their purpose into administrative, distribution and research and development. The cost of goods sold includes the interest from financial lease from the leasing company TRANSPORT - 21 VEK. The loss from financial operations amounting to TCZK 121,101 is a result mostly of interest costs and exchange rate losses. The Group suffered an exchange rate loss in the amount of MCZK 21, all foreign currency conversions were made through cost and income accounts, except for financial derivatives which were calculated through the balance sheet, with impact on the group equity amounting to a loss of 19 million.

With respect to assets, compared to the previous year, there was a decrease in long-term assets and also growth in short-term assets. With respect to short-term assets there was mainly an increase in the area of trade receiv-ables – as a result of the transfer of the majority of long-term receivables to short-term receivables. There was also a more detailed classification of receivables. Receivables from construction contracts and financial lease receivables were excluded from trade receivables. There was a significant reduction as a result of the termination of leasing contracts. Advance payments for services were moved to other assets. The data were also reported for 2012 to enable comparison. A great reduction was reported in the area of inventories. In part of long-term assets, there was a decrease in the above mentioned long-term receivables from financial lease by almost 100 %. These were long-term receivables with maturity in 2015–2016, which were transferred into short-term receivables due to premature termination of leasing. This concerns mainly the receivables of TRANSPORT - 21 VEK. A slight decrease in goodwill and tangible and intangible fixed assets was also reported. This is a result of the sale of Keratech and winding up of ALTA M. In the area of liabilities, there was a growth in short-term payables in the amount of MCZK 1,215 especially in the area of received credits and loans. There was also a slight decrease in other payables. This mainly concerns due payables, in balance with short-term receivables. Long-term credits were mostly transferred to short-term credits and loans. This concerned mainly the credits for the leasing company TRANSPORT - 21 VEK in the Russian Federation.

With respect to results, it can be stated that the Group has met its objectives in the area of revenues, as well as the economic result before application of exchange rate differences. The economic results of the ALTA Group therefore show a positive trend after not only domestic but also foreign markets have eased up.

Considering the fact that the parent company owns subsidiaries located abroad, the consolidated annual finan-cial statement has been prepared in accordance with the International Financial Reporting Standards (IFRS) and at the same time the annual financial statement has also been prepared in accordance with IFRS for 2012.

All companies are included in the consolidated annual financial statement as from the date of incorporation of the company or as from the date of acquisition and they are posted by means of the purchase method.

There were no new acquisitions in 2013. In the course of 2013, there was a merger between DMS s.r.o. (successor) and ALTA 32, s.r.o. (winding up).

Economic results


Every year, the ALTA Group strengthens its leading position amongst the most important Czech exporters. A number of export contracts with bank financing for our customers was successfully implemented. Successful implementation of these projects is aided by our traditionally good and close work relations with banking and insurance institutions.

The range of banks cooperating with us is comprehensive from the perspective of both size and services offered and focus on exports and project financing thereof. Through the use of the experience of bank partners and the capabilities of our staff in the area of export and project funding we are capable of offering innovative solutions to our customers and to ensure favourable financial conditions for successful execution of their business projects.

We have a highly qualified team of specialists with real experience in export and project financing acquired through years of working in the banking sector.

We are ready to offer our customers standard export financing based on medium – or long-term credit with EGAP insurance. In this manner, it is possible to finance a wide range of export supply contracts starting with piece supplies through technological – construction projects on a turnkey basis. We assess in particular the economic and financial standing of the investor’s existing business, justification of the investment and the ability to repay the credit provided. We assist our customers in preparing all the necessary documents for standard analysis of the project and the borrower, required by both banks and the EGAP. While preparing the structure of the projects within the framework of long-term financing of turnkey supplies, we start by analysing all relevant risks for the project which may significantly affect the ability of the new undertaking to repay its liabilities to the financing bank. This is a comprehensive process, which usually takes 6–18 months and is associated with higher costs related to securing credit. Our customers are informed accordingly. Recently there has been an increase in the interest in supplier credits with deferred repayment in the event of piece supplies of equipment, technological systems or spare parts on the part of our customers. This concerns one-off as well as framework contracts with part supplies with deferred repayment of 12–36 months. In such cases, we are able to offer short-term credit with subsequent financing in liaison with cooperating banks and commercial insurance companies. We emphasize the necessity that our customers know the conditions and price of this method of financing their supplies as from the very beginning.

The precondition for success in the field of export is an extensive knowledge of, and experience in, the area of export and project financing. Our company has such knowledge and shares it with its customers in the interest of common use of new business opportunities.

Financing

11 ECONOMICS

The mechanical engineering segment provides optimal technological solutions through the supplied technological systems as well as in the form of supply of individual machines.

Focus: / production, sale and distribution of machine tools produced internally, / sale of machine tools produced externally, / sale of surface treatment equipment, / sale of automated machining lines and operations, / material division, / forming and forging machines, / machining lines and robot work stations, / forming and forging lines and robot work stations, / surface treatment lines (galvanic and varnishing), / casting lines, / technological supplies for iron metallurgy, / welding lines and robotic work stations, / welding equipment, machines and excess materials, / diagnostic equipment.

ALTA, a.s. Since its foundation, ALTA, a.s. has been one of the foremost suppliers of mechanical engineering products to the countries of central and eastern Europe.ALTA, a.s. is an exclusive representative of TOS KUŘIM - OS, a.s., ČKD BLANSKO-OS, a.s. and ŠKODA MACHINE TOOL a.s. in the markets of Russian Federation, Ukraine and Belarus. At the same time the company cooperates with all major mechanical engineering manufacturers in the Czech Republic and Europe. In the field of upgrades, supplies of machining equipment and other technological-production equipment, emphasis is currently being placed on successful completion of the project involving the installation of a complete railroad wheelset machining and assembly line in Kazakhstan. A contract for the supply of a special carousel was signed in 2013, with table diameter of more than 10 m and supply of a special forging line for customers in the Russian Federation was completed. In the area of sales support, ALTA, a.s. provides servicing of selected types of machining equipment and comprehensive maintenance of the supplied technology.

Mechanical engineering

13TRADE AND PRODUCTION

ŠKODA MACHINE TOOL a.s.The ŠKODA MACHINE TOOL a.s. company ranks among the world’s leading manufacturers of machine tools. The history of ŠKODA-brand machine tools dates back to 1911. Due to their unique design, the machine tools have become a symbol of precision, reliability and perfect workmanship. ŠKODA’s employees possess great research and development, construction and technological potential and the company keeps ahead of the competition through the technical level of its products. ŠKODA horizontal boring machines are represented by a number of heavy quill machines of the HCW type with a boring spindle diameter of 150–300 mm. The heavy series of horizontal boring machines are complemented by a series of horizontal milling machines of the FCW type with the spindle diameter of 145 and 150 mm. Work stations with horizontal boring machines can be equipped with rotary tables with a load capacity of 25–500 t and a number of various milling and boring heads and other acces-sories. ŠKODA heavy lathes are represented by the series with the traditional ŠKODA SR brand.

TOS KUŘIM - OS, a.s.Since its founding in 1942, the TOS KUŘIM - OS, a.s. company has been an innovator in implementing new technologies in practice and the trade name of the company soon became a symbol of reliable and precision machine tools with long service life worldwide. The production programme of the company focuses on large milling machines and machining centres, which enable machining of heavy workpieces with large dimensions and very complex shapes from up to five sides and with the application of contouring control in five axes. This involves particularly floor type and gantry type machining centres. The main technological advantage of TOS KUŘIM machines is the system of automatically interchangeable spindle heads. The machines are used mainly in the heavy engineering industry, the energy sector, the armaments and aircraft industry, in the production of heavy construction machines and mining technological systems and in the shipbuilding and railway industry.

ČKD BLANSKO-OS, a.s.ČKD BLANSKO-OS, a.s. ranks among the leading Czech mechanical engineering companies with a long tradi-tion. The company has been a member of the consolidated entity of the ALTA Group since 2010. Since as early as 1951, the ČKD BLANSKO-OS, a.s. company has specialized in development, construction, manufacture and installation of heavy vertical lathes, so-called boring mills in single-column or double-column design. Over this period, the company has supplied more than 730 boring mills to 30 countries around the world. The boring mills manufactured by the ČKD BLANSKO-OS, a.s. company serve as multi-professional machining centres enabling lathe turning, milling, boring, drilling and grinding.

Production plants


The segment of mining technologies specializes in the supply of technologies for raw materials mining, both surface and underground. The supplied technologies, which are well known not only in the CIS countries but also in Poland and Vietnam, are designed both for mining and enrichment of ores and raw materials (especially coal, but also gold, silver, iron ore, chromium, lead, platinum, etc.), and for the mining and treatment of materials intended for the building industry (aggregate, sand, etc.).

Focus: / designing, supply and installation of mining mechanized complexes for coal extraction, / designing, supply and installation of technological lines for mining and treatment of ores and aggregates and its

further processing (concrete mixing plants, asphalt mixing plants, railroad tie manufacturing), / design and supply of technological systems for continuous surface mining of ores and coal, / conveyor systems for deep and surface mining, / supply of mineral processing plants, / supply of mining equipment for vertical transport.

ALTA, a.s. ALTA a.s. has been active in the area of the supply of technological units for deep mining and processing of ores and aggregate since 1996. In the area of mining technology coal processing plant project was completed in 2013 for “PG Silesia” and heavy conveyors were supplied to “Siberian coal energy company” (SUEK). In the segment of technological supplies a major contract was signed in 2013 for the supply of equipment for the “Pokrovskaja” mining shaft from the “Donetskstal” group.

SE-MI Technology, a.s.The production company SE-MI Technology, a.s. supplies mechanical engineering projects and technological systems in the field of deep and surface mining of minerals, processing plants, surface transport systems and also equipment for other industrial sectors, based on proprietary technical, production and logistics know-how.

Mining technologies


The segment of technological projects is focused on the supply of equipment for producing building materials, comprehensive solutions in the energy sector (energy sources) and comprehensive solutions for the petrochemical industry.

Focus: / machines and equipment for the brick and tile industry, / machines and equipment for the production of cement and lime, / comprehensive supplies of services and equipment for the chemical and petrochemical industry, / comprehensive supply of services and equipment in the energy sector, / construction of new metallurgical plants and refurbishment of existing ones.

ALTA, a.s. The segment of technological projects is based on the experience of ALTA, a.s. in the implementation of large investment projects for foreign customers. In the area of technological projects, refurbishment and general upgrade of the rolling line was completed in 2013 for “Ashinsky Metallurgical Plant” (“AMET”). Another impor-tant contract in this segment was the supply of a complete brick production line for “Ceramic Product Plant” (“KLINCY”). In the energy sector, a Memorandum was signed with the Ministry of Energy and Infrastructure of the Serbian Republic, on cooperation on the installation of a new mine and power plant complex with the capacity of 380 MW.

Raw materials and materials

The raw materials and materials segment focuses on the supply of iron ore raw materials and anthracene oil to the Czech Republic.

Focus: / iron ore raw materials – concentrates, pellets, / anthracene oil.

ALTA, a.s. ALTA, a.s. has been supplying iron ore raw materials to the Moravia Steel a.s. company since 1996 to annual volumes of 1–2 million tonnes. In the field of raw materials and materials, in 2013 the supplies of iron ores continued for Třinecké železárny, a.s., increasing the annual volume by 12 % compared to 2012.

Technological projects


In the segment of fuel cycle of nuclear power plants we provide comprehensive solutions to fuel cycles in nuclear power plants, namely starting with supplies of nuclear materials and fresh nuclear fuel and proceeding up to optimization studies of their use in the reactor also after its irradiation.

Focus: / provision of import and export licences for the import and export of nuclear materials and double-use items, / licensing of transport packing materials/containers for road as well as air transport of nuclear materials within

the territory of the EU, / supplies of fresh fuel cells and related engineering services, including the provision of transport thereof for

nuclear power plants and research reactors in the Czech Republic and Slovakia, / export of nuclear materials and provision of transport thereof, / import and export of materials and goods belonging to double-use items, / transport of radioactive and non-volcanic materials and irradiated nuclear fuel.

ALTA, a.s. Supplies of fuel cells to Czech and Slovak nuclear power plants represent one of the traditional activities of ALTA, a.s., which it has pursued since its founding. Since 1995, ALTA, a.s. has been the exclusive representative of the Russian TVEL company, a manufacturer and supplier of nuclear fuel in the territory of the Czech Republic; since 2010, it has also been the exclusive representative in the territory of the Slovak Republic.

ALVEL, a.s.ALVEL is a company established in 2012 as a joint venture of two major companies operating in the nuclear sector: ALTA (Czech Republic) and TVEL (Russian Federation). The company provides top scientific and engineering services in the nuclear sector, particularly with regard to nuclear energy installations in the Czech Republic. Another area of activities is represented by cooperation with companies dealing in supplies for the nuclear energy sector.

DMS s.r.o.The DMS company has long focused on the transport of hazardous materials and radioactive materials, including nuclear materials and the transport of oversized loads. The company provides specialized transport services in the field of the nuclear fuel cycle not only in the Czech Republic but also abroad. Over its twenty-year operation, the DMS s.r.o. company has become a synonym for safe and reliable transport in a global context.

Fuel cycle of nuclear power plants


The corporate management and control of the ALTA Group includes a system of internal control and internal audit, performed by ALTA CZ for members of the ALTA Group. The purpose of the internal control system is to ensure that the set business goals are achieved together with protection of the company assets, effectiveness of in-house processes and protection of the interests of the Group’s shareholders and creditors. The purpose of the internal audit is to assess the internal control system in an independent and impartial manner.In 2013, the Group was subject to a number of audits, which focused in particular on the following: / protection of assets of the member companies in the Group, / assessment of efficiency, effectiveness and economy of the in-house processes executed in the member

companies of the Group, / assessment of compliance with the set strategic goals and interests of shareholders and creditors of the Group,

legislative and regulatory requirements on the part of the member companies in the Group, / identification of major risks associated with activities pursued by the member companies of the Group and

issuing of recommendations concerning management thereof, / assessment of the effectiveness of the processes securing a true and honest presentation of financial information

provided both on the level of the member companies of the Group and on the level of the consolidated financial statement.

The results of the executed audits were provided to the Board of Directors and the Supervisory Board of ALTA Invest. Recommendations were issued on the basis of the determined circumstances, in order to improve the performance of the Group and to minimize the identified risks. A plan for the elimination of the discovered deficiencies was developed on the basis of these recommendations. The department of internal audit contin-uously monitored the performance of corrective measures within the ALTA Group. In 2013, these corrective measures were completed in partial scope.

Internal control and internal audit


The ALTA Group is continually accentuating its products from the perspective of their sustainable competitive-ness. Due to the technical development departments of the member companies, the Group has highly qualified teams of employees specializing in research and development. This concentrated capacity includes all stages of development of a new product, from design to prototype testing.The Group has been creating and developing the background with the necessary research and development technologies of the latest generation systematically and optimizing the designing processes. HW and SW support is of a high level and uses, among others, CAD designing technologies NX, Solid Edge, Solid Works, Auto CAD and the FEM ABAQUS solution. Administration of design data is executed in the system by means of digital archives or PDM systems. The PLM Teamcenter solution is implemented on a pilot basis with a view to administering and controlling the product data within the framework of the entire life cycle thereof with direct reference to the company information system.

ALTA monitors the latest trends, is motivated by new technical findings and tries to apply the latest theoretical knowledge to its product design. The company cooperates with universities and theoretical research centres on a long-term basis. Among its most important partners in this area are the Faculty of Mechanical Engineering at the Brno University of Technology, the Faculty of Mechanical Engineering at the Czech Technical Univer-sity in Prague, the Research Centre for Mechanical Engineering Production Technique and Technology at the Czech Technical University in Prague, the University of West Bohemia, the VŠB-Technical University of Ostrava, Research Centre Řež and ÚJV Řež. There is a new cooperation with the research institution Intemac, focusing on the segment of machining equipment offering, thanks to its nature, the unique form of a centre of competence.In the area of the production of machine tools, the company collaborates with leading suppliers of components, such as Siemens, Heidenhain, Fanuc, INA, FAG, SKF, NSK, ISCAR, Sandvik and Walter.For the control of development in the medium-term horizon, member companies have been preparing a plan of technical development, including the application of the latest findings in technical sciences and reflecting the marketing priorities and goals of the Group. These plans define the goals for preserving and increasing the value of our products and mutual relations based on the competency of individual entities to secure the necessary activities.

Research and development, technologies and innovations

The implementation of the main development tasks focused in 2013 specifically on the following:

ŠKODA MACHINE TOOL / “Heavy horizontal machine HCW4000-CX” – completed research and design,

prototype production phase was started. / “Integration, modularity and reconfigurability of the Group machines”

– continued research and development of reconfigurable milling machine.

ČKD BLANSKO-OS / “Heavy carousel table with modular drive concept” – research and design

phase completed, prototype production is under way.

TOS KUŘIM - OS / “Vertical milling head for interchangeable milling heads with boring spindle”

– research and design phase completed, prototype production is under way. / “Integration, modularity and reconfigurability of the Group machines”

– unified operator cab prototype and control panel was completed, continued research and development of a single-stand reconfigurable machine.

SE-MI Technology / “Development of a new type of continual conveying equipment, belt conveyor

with covering belt to protect the environment and to reduce operating costs” – research and design completed, prototype production is under way.

19INTERNAL CONTROL / RESEARCH AND DEVELOPMENT

The issue of social responsibility has its place and long tradition in the ALTA Group. Relations with clients, partners and suppliers are subject to a mutually strictly transparent approach. It is applied within the framework of the Czech Republic, abroad and particularly in the CIS countries. Above all, we focus on charity projects and aid programmes for people in distress and the disabled. Since 2002, ALTA has been a partner to the cultural project Days of Russian Culture in South Moravia and in Prague. The festival, which meets with a great response every year, is focused primarily on theatre, ballet, film and music. ALTA is a regular supporter of the Russian Cultural and Educational Association in Moravia. The support of the Social Charitable Fund Domovy potřebných (homes for those in need), which organizes therapeutic stays for children from the Ukraine in USP Kociánka in Brno every year, has become an established tradition. The financial aid of ALTA contributes regularly to the humanitarian traditions of our nation within the framework of the partnership with Společnost Ludvíka Svobody (an association named after the former Czechoslovakian president).

As far as internal aspects of the ALTA Group are concerned, increased attention is paid to the creation of a high-quality working environment supporting employees’ personal development and respecting their individual possibilities and diversity at the same time. We promote the creation of all conditions necessary for professional development and we prepare individual training plans for our employees with a view to extending and improving their qualifications. Within the framework of education, we also accentuate the development of language skills. Last year, employees had the opportunity to participate in either individual or group tuition given by our teachers, who are native speakers. In the ALTA Group, special attention is paid to the principle of equal opportunity. We provide our employees with space for personal self-fulfilment and also for innovating existing processes. Our flexibility helps create conditions for maintaining the balance between personal and professional life and we support the career development of our female employees. In 2012, ALTA contracted a new partner providing healthcare, the SurGal private clinic, which is a unique medical facility of its type in the Czech Republic. The afore-mentioned cooperation only accentuates the permanently high level of healthcare provided to our employees and our focus on prevention. The ALTA Group offers its employees and their families a wide range of year-round social, cultural and sports activities and a number of social benefits. Among popular events, there is a Christmas Party, celebration of International Women’s Day, a Summer Party for families with children, a sports-focused event called Střelecké odpoledne (shooting afternoon) and the Group-wide bowling tournament.

Social responsibility


ALTA Invest, a.s.

Trade name: ALTA Invest, a.s.Registered office: Brno, Štefánikova 41Company ID No.: 607 35 244Legal form: joint-stock companyRegistration Court: Regional Court in Brno Identification of the company in the Commercial Register:

Section B, File No. 1497

Date of incorporation: 28 December 1994Registered capital: CZK 200,000,000Number of shares: 220,000 pieces of registered shares

Bodies of the company

Board of DirectorsChairman of the Board of DirectorsVladimír PlašilDeputy Chairmen of the Board of DirectorsLubomír FabíkBronislav Šimek

Supervisory Board

Members of the Supervisory BoardPetr Vágner

Fundamental information on the company (as of 1. 7. 2014)

21SOCIAL RESPONSIBILITY / FUNDAMENTAL INFORMATION

Report on economic results of the ALTA Group for 2013

ALTA Invest, a.s.

CONSOLIDATED GLOBAL ECONOMIC RESULT SUMMARYAS OF 31. DECEMBER 2013, 2012 (thousands of CZK)

2013 2012Income from sales of goods and services 12 487 740 10 811 809Costs for sold goods and services -11 464 238 -9 981 011Gross profit 1 023 502 830 798Distribution costs -123 950 -130 488Administration costs -326 805 -331 400Research and development costs -13 852 -10 869Other operating profit and loss -51 363 -27 449Profit from sale of shares 8 484 0Other financial income 3 575 25 005Other financial expenses -111 693 -117 699Financial profit 213 10 391Financial loss -21 680 -51 768Profit before taxes 386 431 196 521Income tax -82 007 -59 183Profit (loss) for the period from continuing operations 304 424 137 338PROFIT FOR THE PERIOD 304 424 137 338Profit allocated to the shareholders of the parent company 295 036 107 090Profit allocated to non-control shares 9 388 30 248

OTHER COMPREHENSIVE INCOME FOR THE PERIOD:Revaluation reserve for available-for-sale financial assets -2 -1Cash flow hedges of financial derivatives -19 088 46 297Fund from conversion of foreign currencies for foreign operations 8 989 -3 602Tax on other comprehensive income 3 627 -7 707OTHER COMPREHENSIVE INCOME FOR THE PERIOD -6 474 34 987Other comprehensive income allocated to shareholders of the parent company 782 14 663Other comprehensive income allocated to non-controlling shares -7 256 20 324

COMPREHENSIVE INCOME FOR THE PERIOD – TOTAL 297 950 172 325Total comprehensive income allocated to shareholders of the parent company 295 818 121 753Total comprehensive income allocated to non-controlling shares 2 132 50 572


Report on economic results of the ALTA Group for 2013

ALTA Invest, a.s.

CONSOLIDATED GLOBAL ECONOMIC RESULT SUMMARYAS OF 31. DECEMBER 2013, 2012 (thousands of CZK)

2013 2012Short-term assets 8 182 935 6 715 183Cash and cash equivalents 1 776 199 1 065 883Trade and other receivables 4 521 049 1 841 786Receivables from construction contracts 741 172 697 344Financial lease receivables 50 361 1 108 634Inventories 743 418 1 425 486Other financial assets 12 717 5 309Other assets 320 012 559 416Assets classified as held for sale 4 782 4 361Tax receivable 13 225 6 964Long-term assets 1 545 927 3 541 841Property, plant and equipment 878 691 957 938Investment property 1 362 1 298Goodwill 531 063 535 445Intangible assets 125 748 134 819Trade and other receivables 0 4 281Financial lease receivables 1 970 1 897 111Other financial assets 59 23Other assets 7 034 210Deferred tax receivable 0 10 716TOTAL ASSETS 9 728 862 10 257 024 TOTAL EQUITY 1 597 191 1 299 733Share capital 200 000 200 000Funds from profits -6 959 -8 590Retained earnings 1 169 702 875 368Non-controlling shares 234 448 232 955TOTAL LIABILITIES 8 131 671 8 957 291Short-term liabilities 7 239 937 6 024 520Trade and other payables 1 688 916 1 515 336Financial lease liabilities 3 608 7 097Liabilities from construction contracts 146 850 179 302Loans and borrowings 4 183 544 2 724 164Other financial liabilities 7 609 1 383Other liabilities 1 163 074 1 550 820Provisions 46 336 46 418

Long-term liabilities 891 734 2 932 771Trade and other payables 13 213 627Financial lease liabilities 4 200 5 961Loans and borrowings 454 952 2 493 570Other financial liabilities 18 041 28 181Other liabilities 374 575 380 241Provisions 0 24 191Deferred payable tax 26 753 0TOTAL EQUITY AND LIABILITIES 9 728 862 10 257 024

23CORPORATE ECONOMICS

25YEARLY REPORT 2013

Addresses and contact details

ALTA Invest, a.s.Štefánikova 41602 00 BrnoCzech RepublicT +420 541 550 111, F +420 541 550 555e-mail: [email protected]

ALTA, a.s.Štefánikova 41602 00 BrnoCzech RepublicT +420 541 550 111, F +420 541 550 555e-mail: [email protected]

ALTA, a.s. – Prague OfficeOpletalova 37110 00 Prague 1Czech RepublicT +420 255 729 444T +420 255 729 442, F +420 255 729 460e-mail: [email protected]

ALTA, a.s. – Přerov OfficeŽerotínovo náměstí 12750 02 PřerovCzech RepublicT +420 581 738 770, F +420 581 738 126e-mail: [email protected]

ALTA, a.s. – Most OfficeBudovatelů 2532434 01 MostCzech RepublicT +420 541 550 625, F +420 595 224 192e-mail: [email protected]

ALTA, a.s. – Ostrava OfficeMatuškova 10710 00 OstravaCzech RepublicT +420 541 550 620, F +420 595 224 192e-mail: [email protected]

ALTA CZ, a.s.Štefánikova 41602 00 BrnoCzech RepublicT +420 541 550 116, F +420 541 550 557e-mail: [email protected]

ALTA CZ, a.s. – branch officePalackého třída 87612 00 BrnoCzech RepublicT +420 541 550 116, F +420 541 550 559e-mail: [email protected]

ALVEL, a.s.Opletalova 37110 00 Prague 1Czech RepublicT +420 541 550 650, F +420 541 550 660e-mail: [email protected]

ŠKODA MACHINE TOOL a.s.Tylova 1/57Jižní Předměstí 301 00 PlzeňCzech RepublicT +420 378 132 788, F +420 378 134 427e-mail: [email protected]

TOS KUŘIM - OS, a.s.Company headquarters:Štefánikova 41602 00 BrnoCzech Republic

Production plant:Blanenská 257664 34 KuřimCzech RepublicT +420 541 101 111, F +420 541 102 355e-mail: [email protected]

ČKD BLANSKO-OS, a.s.Company headquarters:Štefánikova 41602 00 BrnoCzech Republic

Production plant:Blanenská 257664 34 KuřimCzech RepublicT +420 541 101 111, F +420 541 102 355e-mail: [email protected]

SE-MI Technology, a.s.Matuškova 10710 00 OstravaCzech RepublicT +420 595 224 111, F +420 595 224 105e-mail: [email protected]

DMS s.r.o.Dukovany Power plant675 50 DukovanyCzech RepublicT +420 561 103 484, F +420 568 866 496e-mail: [email protected]

27ADDRESSES AND CONTACT DETAILS

Addresses and contact details

ALTA-RUSCompany headquarters:ul. Mamina-Sibirjaka, 101, office 6118 620 075 YekaterinburgSverdlovsk region Russian Federatione-mail: [email protected]

Postal address in Saint Petersburg:pl. Konstitucii, 7, office 341a196 191, Saint PetersburgRussian FederationT +7 (812) 611 11 79, (812) 611 11 76, (812) 611 11 74e-mail: [email protected]

Postal address in Moscow:2-Tverskaja Jamskaja 31/35125 047 MoscowRussian FederationT +7 (495) 232 43 44e-mail: [email protected]

ALTA-URALul. Mamina-Sibirjaka, 101, office 6118620 075 YekaterinburgRussian FederationT +7 (343) 253 05 66, F +7 (343) 253 05 67e-mail: [email protected]

ALTA-UKRb-r. Lesi Ukrainki 26011 33 KievUkraineT +38 (044) 492 90 14, F +38 (044) 492 90 13e-mail: [email protected]


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yearly report 2013 - alta invest · mining technological systems remain especially important. this...

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