Meeting with the stock exchange analysts after publishing the 2010 financial results of Stalexport Autostrady S.A.
On 10 March 2010 the Management Board of Stalexport Autostrady S.A. held the meeting with the stock exchange analysts and journalists. During the presentation Emil Wąsacz, the President of the Management Board of the Company, emphasized very good financial results obtained by the Group. As an example, he mentioned the dynamic of sales revenues (an increase of over 19% compared to previous year) and net profit of PLN 14.5m, which was almost twice higher than recorded in 2009. The Company’s Management Board also noted a significant change in the accounting principles used by the Group. Introduction of the interpretation of IFRIC 12 by Stalexport Autostrady Group, as from 2010, had a significant impact on the presentation of financial statements. In particular, it resulted in a retrospective reduction in the equity and the reclassification of tangible assets as intangible assets and apportion of project’s net results for all the concession period (current results include amortization of both already incurred and future capital expenditures).
During the meeting the Management Board of the Company presented the proposal of decreasing the nominal value of one share from PLN 2.0 to PLN 0.75 which will allow distribution of future profits among the shareholders of Stalexport Autostrady S.A. It will also set off high uncovered losses from previous years, still included in the balance sheet as a result of activity in steel business. Mieczyslaw Skołożyński, Vice-President of Stalexport Autostrady S.A., stressed that it will finally close this stage Company’s history. The decision on reduction of share capital will be taken by Company's Ordinary General Meeting on April 4, 2011.
During the meeting the Management Board of Stalexport Autostrady S.A. also expressed interest in participating in future motorway projects organized in Public-Private Partnership (PPP) formula. In particular it refers to the planned construction and operation of the A1 motorway Tuszyn-Pyrzowice and the A2 Warszawa-Kukuryki. Emil Wasacz, however, stressed that the success of PPPs depends on the financial and business conditions defined by the public side. In the case of transfer to the private entities of all the risks related to the project it will not be possible to arrange financing for the project and thus its actual implementation will not be possible as well. During the presentation the Management Board of Stalexport Autostrady S.A. also paid attention to the alternative possibility of raising additional funds for the state budget, i.e. payable transfer to private entities the operation of both existing motorway sections and those currently under construction in the traditional formula. Based on the experiences of other European Union countries (France, Italy and Spain) it may give PLN 12 billion to the state budget. Such a solution is an interesting way to improve the condition of public finance, but first of all it is relatively easy to implement.
The material discussed by the Management Board of Stalexport Autostrady S.A. at the meeting with analysts and journalists is available on the Company’s website under “Investor Relations / Presentations. "
Presentation- Meeting with the stock exchange analysts- Warsaw 10.03.2011