ANNUAL REPORT 2020

Železiarne Podbrezová a.s. ANNUAL REPORT 2020 18 RESEARCH AND DEVELOPMENT In 2020, we spent EUR 842 thousand on R&D. R&D was performed primarily by contractual cooperation with the subsidiary, ŽP Výskumno- vývojové centrum (ŽP VVC s.r.o.), which worked on six research tasks for the Company. The tasks were focused on research in optimisation of technological processes, increasing the life of ceramics, implementation of data analytics in the production and processing of waste and secondary raw materials. ENVIRONMENTAL POLICY The Company’s long-term priority is protection of the environment and of the safety and health of employees at work. This is evidenced by a functional safety and health management system, which is a permanent part of the Company’s business activities. Based on the previous effectiveness and functionality analyses of individual management systems, the Company implemented a joint internal combined audit of the two management systems for the environment and occupational health and safety. The integrated management system combines: The environmental management system (SEM) under ISO 14001; and The occupational health and safety management system (SRBP) under ISO 45001. In 2020, SGS Slovakia spol. s r.o. performed a supervision audit of SEM and a recertification audit of SRBP’s compliance with ISO 45 001. The audit results showed that the integrated management system works. We performed a total of 11 environmental activities (amounting to EUR 565 thousand) and fulfilled 32 SRBP objectives to improve occupational health and safety (total costs: EUR 8 629 thousand) under the SEM programme in 2020. HUMAN RESOURCES Železiarne Podbrezová a.s., as a major employer, has addressed HR management in the long-term and systemically. Looking after our employees is a Company priority and encompasses recruitment, selection and education of young people, remuneration, an occupational health and safety system, and continual education and benefits. In 2020, as in every year, Company management adopted two fundamental documents: the 2020 Collective Agreement concluded between VZO OZ KOVO of Železiarne Podbrezová (the KOVO trade union works council) and the Board of Directors of Železiarne Podbrezová a.s., and the Programme of the Board of Directors of Železiarne Podbrezová a.s., which cover a comprehensive personnel, wage, social and occupational health and safety policy programme. The Company fully met its obligations arising from the above documents. The total amount of EUR 548 thousand was spent from the social fund in 2020. The most significant items were as follows: Catering services for employees EUR 417 thousand; 24/7 accident insurance for all employees EUR 54 thousand; Children’s holiday camps EUR 35 thousand; Social aid EUR 22 thousand; Employee rehabilitation vouchers EUR 15 thousand; Recovery stays for employees who are blood donors EUR 4 thousand. The Employee Care Programme was extended to include the following: Employer’s contribution to employee supplementary pension savings schemes EUR 1 109 thousand; Retirement and severance payments to employees EUR 897 thousand; Protective equipment and employees’ hydration regime EUR 521 thousand; Preparation of future workforce and granting of scholarships EUR 385 thousand; REPORT BY THE BOARD OF DIRECTORS ON BUSINESS ACTIVITIES, ASSETS AND FINANCIAL PERFORMANCE IN 2020 AND INFORMATION ON THE BUSINESS PLAN