FINANCIAL STATEMENTS WITH NOTES, ACCOUNTING STATEMENTS
Profit and Loss Account as at December 31, 1997   in 000 CZK
 

1997

1996
Revenues from goods sold 411 358 327 191
Cost of sales 189 171 139 819
Gross margin 222 187 187 372
Operations 9 015 495 7 842 137
Revenues from own products and services 9 005 111 7 825 655
Changes in inventory of own production 2 127 -7
Capitalised Costs 8 257 16 489
Operations consumption 6 365 319 7 374 704
Consumption of materials and energy 1 666 533 1 557 026
Services 4 698 786 5 817 678
Value added 2 872 363 654 805
Personnel expenses 1 048 336 934 406
Wages and salaries 757 329 680 005
Remuneration to Members of Company Bodies and Co-operatives    
Social insurance 196 721 176 743
Statutory social expenses 94 286 77 658
Taxes and fees 61 250 65 186
Depreciation of tangible and intangible fixed assets 272 283 276 392
Revenues from sales of fixed assets and materials 251 517 266 733
Net book value of fixed assets and materials sold 185 275 219 449
Accounting for reserves and accruals to operating revenues 134 211 195 464
Additions to reserves and accruals to operating expenses 187 050 250 352
Accounting for adjustments to operating revenues 22 727 63 589
Accounting for adjustments to operating expenses 27 805  
Other operating revenues 1 022 085 767 453
Other operating expenses 2 484 463 446 940
Operating profit (loss) 36 441 -244 681
Revenues from financial investments 3 304  
Revenues from other financial investments 3 304  
Accounting for reserves to financial revenues 3 433 1 826
Additions to provisions for financial expenses   17 954
Interest received 28 601 24 959
Interest paid 29 570 27 372
Other financial revenues 492 592 206 648
Other financial expenses 489 396 171 208
Profit (loss) from financial operations 8 964 16 899
Income tax on ordinary activities 2 535 10 475
due   7 736
deferred 2 535 2 739
Profit (loss) from ordinary activities 42 870 -238 257
Extraordinary revenues 25 001 67 721
Extraordinary expenses -21 458 36 437
Extraordinary profit (loss) 46 459 31 284
Profit (loss) of the current accounting period 89 329 -206 973
Profit (loss) before tax 91 864 -196 498

 

Balance Sheet as at December 31, 1997       in 000 CZK
  1997 1997 1997 1996
Assets Gross Adj. Net Current Year Net Previous Year
Total assets 8 689 745 1 875 003 6 814 742 5 396 750
Fixed assets 4 970 386 1 736 612 3 233 774 2 429 889
Intangible fixed assets 79 625 43 035 36 590 43 325
Software 65 766 34 706 31 060 38 848
Other intangible fixed assets 8 329 8 329    
Intangibles in progress investice 3 660   3 660 3 144
Advances for intangibles 1 870   1 870 1 333
Tangible fixed assets 4 866 320 1 693 577 3 172 743 2 368 811
Land 38 004   38 004 38 004
Buildings, halls and structures 532 823 181 146 351 677 327 004
Independent movables and groups thereof 2 174 337 1 452 957 721 380 750 832
Other tangible fixed assets 59 777 59 474 303 302
Tangibles in progress 238 810   238 810 136 518
Advances for tangibles 1 822 569   1 822 569 1 116 151
Financial investments 24 441   24 441 17 753
Shares and ownership interests in companies with controlling influence 1 669   1 669 1 480
Other securities and deposits 2055   2055 104
Other financial investments 20 717   20 717 16 169
Current assets 2 387 662 138 391 2 249 271 1 908 848
Inventory 415 350 52 442 362 908 320 887
Materials 371 811 52 442 319 369 279 764
Work-in-progress and semi-finished products 5 543   5 543 3 417
Goods 37 996   37 996 37 706
Long-term receivables 66 502   66 502 38 522
Trade receivables 66 502   66 502 38 522
Receivables from partners and associations        
Receivables from companies with controlling influence        
Receivables from companies with substantial influence        
Other receivables        
Short-term receivables 1 041 055 85 949 955 106 702 563
Trade receivables 772 958 85 647 687 311 644 193
Receivables from partners and associations        
Social security receivables        
Tax receivables 245 285   245 285 51 010
Deferred taxes        
Receivables from companies with controlling influence       1 100
Receivables from companies with substantial influence        
Other receivables 22 812 302 22 510 6 260
Financial assets 864 755   864 755 846 876
Cash 204 655   204 655 435 107
Bank accounts 660 100   660 100 411 769
Short-term financial assets        
Other assets-temporary accounts 1 331 697   1 331 697 1 058 013
Deferrals and accruals 1 331 697   1 331 697 1 057 989
Deferred expenses 963 052   963 052 1 005 748
Accrued revenue 66 390   66 390 48 813
Foreign currency exchange losses aktivní 302 255   302 255 3 428
Estimated receivables 0   0 24

 

Liabilities as at December 31, 1997   in 000 CZK
  1997 1996
Liabilities    
Total liabilities 6 814 742 5 396 750
Equity 1 376 408 1 287 048
Registered capital 2 735 510 2 735 510
Registered capital 2 735 510 2 735 510
Own shares    
Capital funds 27 537 560 299
Share premium 0 532 793
Other capital funds 27 537 27 506
Gains or losses from revaluation of assets    
Gains or losses from investments    
Funds created from net profit 0 167 127
Legal reserve fund 0 167 127
Indivisible fund    
Statutory and other funds    
Profit (loss) of previous years -1 475 968 -1 968 915
Retained earnings from previous years    
Accumulated losses from previous years -1 475 968 -1 968 915
Profit (loss) of current period 89 329 -206 973
Not-own capital 3 232 675 2 272 995
Reserves 647 426 598 020
Legal reserves 624 848 579 813
Reserve for foreign exchange losses 0 3 428
Other reserves 22 578 14 779
Long-term payables 572 670 572 670
Payables to companies with contolling influence    
Payables to companies with significant influence    
Long-term advances received    
Bonds issued    
Long-term bills of exchange to be paid   0
Other long-term payables 572 670 572 670
Short-term payables 948 250 597 307
Trade payables 808 418 520 063
Payables to partners and associations    
Payables to employees 33 013 25 347
Social security payable 30 171 27 089
Tax payable 43 168 75
Deferred taxes 27 268 24 733
Payables to companies with contolling influence    
Payables to companies with significant influence    
Other payables 6 212 0
Bank loans and short-term notes 1 064 329 504 998
Long-term bank loans 883 079 93 431
Short-term bank loans 181 250 411 567
Short-term notes    
Other liabilities-temporary accounts 2 205 659 1 836 707
Accruals and deferrals 1 734 499 1 283 785
Accrued expenses 719 279 769 768
Deferred revenues 633 395 506 609
Foreign currency exchange gains 381 825 7 408
Estimated payables 471 160 552 922

 

ACCORDING TO INTERNATIONAL STANDARDS (IAS)

Profit (Loss) as at December 31, 1997

in milions CZK 1997 1996
Traffic revenues 9 419 8 153
Other operating income 1 209 935
Total turnover 10 628 9 088
 
Operating expenses -7 273 -6 513
Staff expenses -1 048 -935
Depreciation -952 -789
Other operating expenses -528 -512
Operating profit (loss) 827 339
Other income 148 159
Interest and financial changes -665 -569
Foreign exchange differences -1 780 -171
Profit (loss) before tax -1 470 -242
Tax on profit   -7
Profit (loss) -1 470 -249

Balance Sheet as at December 31, 1997

Intangible and tangible assets and investments 12 289 8 595
Intangible fixed assets 37 43
Tangible fixed assets 12 228 8 534
Financial investments 24 18
Current Assets 2 570 2 234
Inventory 366 328
Receivables and other assets 1 339 1 059
Financial accounts 865 847
Short-term liabilities -3 910 -3 242
Net current assets minus liabilities -1 340 -1 008
Total assets minus short-term liabilities 10 949 7 587
Long-term liabilities -8 688 -5 796
Reserves -624 -580
Total 1 637 1 211
Equity 1 637 1 211
Registered capital 2 736 2 736
Profit (loss) and reserves -1 099 -1 525

 

NOTES TO THE CSA FINANCIAL STATEMENTS AS OF 31ST DECEMBER 1997

A. Accounting Methods and Accounting Principles

1. 

Purchased supplies are valued at average costs, internally produced inventory is valued at a cost representing the sum of material, wages and other operating expenses and overhead. Transportation, duty and packaging expenses are included in purchase costs of purchased supplies.
2. 

Tangible and intangible fixed assets produced at internal costs are valued at a cost comprising the sum of material, wages and other operating expenses and overhead.
3. 

CSA investments in subsidiaries are valued at acquisition cost, the consolidation of the results of subsidiaries was not performed due to the fact that they represent an insignificant amount in the total turnover and capital of CSA.
4. 

The company uses straight-line depreciation rates for individual types of assets based on stated depreciation policy.
5. 

The company uses so called IATA Clearing House exchange rates to convert foreign currencies into CZK, at the end of the year the ENB rate of 31st December 1997 was used to convert receivables, payables and funds. Updated IATA Clearing House rates were used at the end of the year only where the ENB does not publish the exchange rates of those currencies in which CSA conducts transactions in foreign currencies.

B. Additional Information to the Balance Sheet and Profit and Loss Account

1. Summary of tangible and intangible fixed assets of the company in thousands CZK

Description Acquisition price 1997 Accumulated depreciation   1997 Acquisition price 1996 Depreciation 1996
Land 38 004 0 38 004 0
Buildings, halls, constructions 532 823 181 146 490 044 21 142
Power equipment 40 203 15 489 38 448 2 703
Machinery and equipment 84 578 42 781 76 428 7 620
Appliances and special tech. equipment 393 936 270 531 365 643 52 044
Rotating aircraft parts 449 652 219 635 478 457 57 326
Aircraft 776 064 691 151 1 751 718 62 907
Transportation means 363 078 179 784 324 933 39 168
Office equipment 66 826 33 586 52 939 4 723
Low-value tangible fixed assets 59 474 59 474 49 819 9 655
Total tangible fixed assets 2 804 638 1 693 577 3 666 433 257 288
Software 65 766 34 706 60 823 12 731
Other intangible fixed assets 8 329 8 329 6 065 2 264
Total tangible and intangible fixed assets 74 095 43 035 66 888 14 995

2. Significant increases and decreases in assets in 1997 in thousands CZK

Description Increase Decrease
Buildings, halls, constructions 45 076 2 297
Machinery, appliances and equipment 44 501 6 304
Transportation means including aircraft and rotating aircraft parts 183 335 1 149 650
Low-value tangible fixed assets 10 043 84
Software 4 943  
Other intangible fixed assets 2 267 3

3. Financial leasing

3.1. 

A310-300 aircraft including equipment - acquisition in 1991, the contract valid until 2003 with instalments to be paid until 2001.
3.2. 

ATR 72 aircraft including equipment - acquisition in 1992, the contract valid and instalments to be paid until 2002.
3.3. 

Boeing 737-500 aircraft including equipment - acquisition in 1992, the contract valid and instalments to be paid until 2004.
3.4. 

ATR 42 aircraft including equipment - acquisition in 1996, the contract valid and instalments to be paid until 2006.
3.5. 

Boeing 737-500 aircraft - acquisition in 1997, the contract valid and instalments to be paid until 2009.

Payables related to finance leases analysed by due dates

  Currency Amount in thousands
Purchase costs USD 596 060
Settled by 31st Dec. 1997 USD 267 739

        - out of it in 1997

 USD 49 130
Payables due within 1 year USD 51 846
Payables due over 1 year USD 276 475

4. Trade receivables and payables in thousands CZK

  Receivables 97 Adjustments 97 Receivables 96 Adjustments 96
Due 685 274   608 769  
Overdue 87 684 85 647 92 582 57 158
- domestic 49 855 47 818 52 791 43 632
- foreign 37 829 37 829 39 791 13 526
  Payables 97   Payables 96  
Due 808 418   520 063  
- domestic 300 937   172 137  
- foreign 507 481   347 926  

5. Value of inter-company balances between CSA and its subsidiaries at the end of 1997 in thousands CZK

Subsidiary CSA receivables CSA payables
Amadeus s.r.o. 624 0
S.A.S. s.r.o. 0 0
Airtours a.s. 51 471
CSA Services 96 0

Information on the CSA investments in subsidiaries and their economic results of 1997 are stated in the chapter "Subsidiaries".

6. Employee

The average number of company employees was 3 912 in 1997, 82 in managing positions.

in thousands CZK Total personnel expenses Out of that on management
Wage costs 757 327 36 813
Bonuses to the members of statutory bodies   0
Social security expenses 196 721 9 571
Social expenses 94 264 3 313
Total 1 048 312 49 697

No bonuses were paid to the members of statutory and supervisory bodies in connection with their activities in these bodies in 1997.

7. Equity

The company had accumulated losses in the amount of 1 475 968 thousand CZK at the end of 1997.

CSA presents to the company's Board of Directors the following proposal on how to divide the 1997 profit:
a) 5% allotment to the company's reserve fund, i.e. 4 466 thousand CZK
b) settlement of previous losses in the amount of 84 863 thousand CZK

The total amount of losses will be 1 391 105 thousand CZK, i.e. 50.85% of the registered capital of the company, which represents an improvement of 3.1% as compared to 1996.

8. Reserves recorded in the company's accounting in thousands CZK

8.1. Legal reserves for aircraft repair and maintenance

Opening balance Additions 1997 Utilisation 1997 Closing balance
579 813 179 246 134 211 624 848

8.2 Reserves for rate of exchange losses

Opening balance Additions 1997 Utilisation 1997 Closing balance
3 428 0 3 428 0

8.3 Other reserves

Opening balance Additions 1997 Utilisation 1997 Closing balance
14 779 7 804 5 22 578

9. Bank credits

In connection with the arrivals of B 737 aircraft, which were acquired through foreign financial leasing, the financing banks provided a credit totalling 30 729 thousand USD at the end of 1997.

10. Revenues from regular activities in thousands CZK

Type of revenues rok 1997 rok 1996
Revenues from sales of goods 411 358 327 191
Revenues from realised transport 8 478 395 7 403 809
- foreign transport 7 606 893 6 720 180
- domestic transport 32 235 35 698
- charters 839 267 647 931
Revenues from sales of services 526 717 421 846

 

Company's Cash Flow in 1997

     
P. Opening balance of cash and cash equivalents at the beginning of accounting period 846 876
Z. Book profit (loss) from regular activities before taxation 45 405
A.1. Non-monetary transaction adjustments 253 077
A.1.1. Depreciations of fixed assets 279 695
A.1.2. Change in balances of adjustments, reserves and change in the balance of temporary accounts of assets and liabilities 4 968
A.1.3. Profit (loss) from the sale of fixed assets - 29 251
A.1.4. Revenues from dividends and shares in profit -3 304
A.1.5. Accounted expense and revenue interests 969
A * Net cash flow from operating activity before taxation, changes in working capital and extraordinary items 298 482
A.2. Change of need of working capital 11 198
A.2.1. Change in operating activity receivables - 309 012
A.2.2. Change in operating activity short-term payables 348 408
A.2.3. Change in inventory - 28 198
A ** Net cash flow from operating activity before taxation and extraordinary items 309 680
A.3. Expenditure related to the payment of interests except for capitalised interests - 29 570
A.4. Received interests 28 601
A.5. ZTax paid on revenues from regular activity and arrears of tax for previous periods 0
A.6. Revenues and expenses related to extraordinary accounting events including tax paid from revenues from extraordinary activity 46 459
A *** Net cash flow from operating activity 355 170
B.1. Expenses related to acquisition of fixed assets - 734 114
B.2. Revenues from the sale of fixed assets 30 311
B.3. Loans and credits to related parties  
B *** Net cash flow related to investment activity - 703 803
C.1. Change in the balance of long-term and/or short-term payables 363 208
C.2. Effects of net equity changes on cash  
C.2.1. Increase in cash due to increase in registered capital  
C.2.2. Payment of share on net equity to partners  
C.2.3. Cash gifts and subsidies in net equity and other contributions of shareholders  
C.2.4. Compensation of losses by partners  
C.2.5. Direct payments to fund's debit  
C.2.6. Paid dividends or shares in profit  
C.3. Received dividends and shares in profit 3 304
C*** Net cash flow related to financial activity 366 512
F. Net increase/decrease in cash 17 879
R. Closing balance of cash and cash equivalents 864 755

The full wording of the notes to accounting statements is filed with the company's Chief Accountant.