Management Report on Company Business
Activities and Assets

PUBLIC RELATIONS

Severočeské doly a.s. and its subsidiaries provide job security and good employment-related benefits to employees in districts suffering from high unemployment. The Company's economic strength makes it a stabilizing element in the region and allows it to help find solutions to other problems in local towns and cities.

Relationship to the Environment

The Company's efforts in environmental protection are aimed at a number of projects monitoring developments and improving living conditions in the surrounding area. The Company efficiently invests into environmental measures, reclamation, and the formation of related mandatory provisions.

Sponsorship Programme

The Company worked with city and community officials as well as other institutions to develop public life. In 2001, the Company provided funds in accordance with a General Meeting resolution and a Government resolution on corporate donations, and all donations met the conditions set forth by the Income Tax Act.
Cities and towns received more than CZK 28.4 million to develop their infrastructure and secure fire prevention measures. A sum of CZK 6.9 million was donated to healthcare, social, and charity causes. Much of this financial aid went to hospitals and polyclinics in Chomutov, Kadaň, Teplice, and Ústí nad Labem. The Company also donated CZK 5.3 million to physical education and sport, especially leisure time activities and the development of gifted children and young people. CZK 3.7 million was gifted to arts and the environment, and CZK 3.6 million was donated to science and education. Selected sports, cultural, educational, and other social organizations received CZK 7.7 million in the form of consideration paid for advertisement and promotion.

Information Openness

Severočeské doly a.s. goes beyond the framework of its legal obligations in its efforts to provide regular information via selected media and competent institutions concerning its results, major events within the organization, and circumstances relating to external affairs. The media are also used to promote, advertise, and cement the Company's image.
In order to promote the reputation of Severočeské doly a.s., the Company produced a speciality publication called 'SD – A Coal Company with a Future'and a multimedia presentation on CD-ROM called 'Reclamation'. As part of our publications programme, the Company publishes a magazine called 'Hornické listy (Miners Journal).

Other Activities

In 2001, Severočeské doly a.s. continued to be an active member of the Mining and Oil Refining Industry Employers Union, the Czech Environmental Association, and the Czech Managers Association. We were also active participants in the activities of the District Economic Chamber in Chomutov and the Chomutov and Teplice Economic and Social Councils.