Assets

	31 Dec 2012	31 Dec 2011	Growth
Assets
Non-current assets
Property, plant and equipment	9,230.9	8,458.8	109.1%
Intangible assets	77.3	64.9	119.1%
Investment property	23.1	-	-
Investments in associates	10.8	9.1	118.7%
Deferred income tax assets	184.2	101.6	181.3%
Other long-term assets	265.7	239.2	111.1%
	9,792.0	8,873.6	110.3%
Current assets
Inventories	806.1	739.7	109.0%
Trade receivables and other receivables	1,020.4	1,363.2	74.9%
Income tax overpaid	4.2	22.0	19.1%
Financial derivatives	3.9	4.0	97.5%
Other short-term financial assets	948.9	24.6	3,857.3%
Cash and cash equivalents	1,490.7	2,589.0	57.6%
	4,274.2	4,742.5	90.1%
Non-current assets available for sale	0.9	0.9	100.0%
	4,275.1	4,743.4	90.1%
TOTAL ASSETS	14,067.1	13,617.0	103.3%

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Total assets as at 31 December 2012 were PLN 14,067.1 million, up by PLN 450.1 (3.3%) from the end of 2011. The most important movement in assets occurred in the following items: other short-term financial assets (up by PLN 924.3 million), property, plant and equipment (up by PLN 772.1 million), cash and cash equivalents (down by PLN 1,098.3 million).and other receivables (down by PLN 342.8 million).

Non-current assets
As at 31 December 2012 and as at 31 December 2011, the Group’s non-current assets amounted to PLN 9,792.0 million and PLN 8,873.6 million, respectively, and accounted for 69.6% and 65.2% of total assets. The value of non-current assets during the year increased by PLN 918.4 million.

The biggest non-current assets line item was property, plant and equipment which, as at the end of 2012, accounted for 94.3% of non-current assets. As at the end of 2012, their value stood at PLN 9,230.9 million, up by 9.1% during the year. The largest expenditures on non-current assets were incurred by the Parent Company. They amounted to PLN 1,467.6 million, while depreciation was PLN 806.0 million. The structure of expenditures incurred is presented in Item 2.5.1 of Management Board Report on the activity of the JSW S.A. Capital Group for 2012. Additionally, growth in property, plant and equipment was due to the activation of part of KK Zabrze’s court-awarded compensation to Zarmen Sp. z o.o. in the amount of PLN 36.7 million. Also activated was the investment project being executed by WZK Victoria in the form of construction of a coking gas purification system. Expenditures incurred on the execution of the project in 2012 amounted to PLN 17.6 million and expenditures on the construction of the Coal Derivative Unit conducted in 2007-2012 amounted to PLN 210.1 million.

In 2012, the Group reclassified USD 20.8 million worth of property, plant and equipment to investment property. Part of the investment property is the Różany Gaj hotel building, currently managed by a commercial operator. Further expenditures incurred in 2012 after the reclassification amounted to PLN 7.6 million. The property was commissioned for use in Q4 2012. The expected useful life of the property is 40 years. Valuation of the property by the Group is performed based on the purchase price model or the production cost model. Information on the methods and significant assumptions made in determining the fair value of investment property is described in Note 8 of the Consolidated Financial Statements of the Jastrzębska Spółka Węglowa S.A. Capital Group for the financial year ended 31 December 2012. The investment property is owned by the Parent Company.

Current assets
The Capital Group’s current assets as at 31 December 2012 and as at 31 December 2011 amounted to PLN 4,275.1 million and PLN 4,743.4 million, respectively, accounting for 30.4% and 34.8% of total assets, down by PLN 468.3 million, i.e. 9.9%. The decrease in current assets was mainly due to the fall in the balance of trade receivables and other receivables by PLN 342.8 million, i.e. 25.1%. The fall in trade receivables and other receivables is associated with the recorded lower volume of coal sales and the lower realized average selling price of coking coal and coke in 2012. The decrease in cash and cash equivalents by PLN 1,098.3 million (42.4%) is associated with the establishment of deposits with a maturity of 3 to 12 months, as a result of which other short-term financial assets increased significantly at the end of 2012 (up to PLN 948.9 million, i.e. by PLN 924.3 million).

Inventories formed another significant line item of current assets. Their share in current assets in 2012 was 18.9%, reaching PLN 806.1 million, i.e. 9.0% more than at the end of 2011. The biggest share in the inventories were finished products (84.6%), followed by materials (13.1%), merchandise (1.8%) and semi-finished products and production in progress (0.5%).