ANNUAL REPORT 2020

Železiarne Podbrezová a.s. ANNUAL REPORT 2020 21 The Company has long trained its own qualified employees at its Private United School of Železiarne Podbrezová (SSŠ ŽP). High-quality specialist education of students: metal workers, metallurgists, electrical engineers, mechanics and mechatronics engineers with work habits, which they acquire during practical learning and on-the-job training at the parent company, enable their problem-free employment. In 2020, 29 school graduates were employed at the Company after completing their studies and others will continue their studies at universities. Since the establishment of the school, a total of 746 graduates have been employed by the Company, and almost a half of them worked for the Company at the end of 2020. A total of 249 instructors trained the students and the school paid motivational scholarships and incentives for productive work to students undergoing on-the- job training. The school joined the dual learning process that combines school education with on-the-job training with an employer. This is the way the school has operated since its reopening by Železiarne Podbrezová in 2003 and we will continue to support this education system for creating a qualified workforce. In 2020, the Company supported 16 employees to study while working to increase their qualification with work concessions. Fifteen of them are studying for a bachelor’s degree in metallurgy at the Technical University of Košice and one employee was studying for an engineering degree at the Faculty of Materials Science and Technology of the Slovak Technical University. In 2020, one employee was awarded a bachelor’s degree at the Technical University of Košice. ŽeleziarnePodbrezováhasa traditionof cooperating with universities, also thanks to a memorandum on cooperation with eight universities signed in 2017. We have cooperated most with the Faculty of Materials, Metallurgy and Recycling of the Technical University in Košice, with which we organise open-door days at our school and at the faculty, where we present study opportunities and graduate job opportunities at our Company. The Company offers university scholarships to selected talented secondary school students from our private schools. We cooperate with the Matej Bel University, especially with the IT Department, in connection with secondary school IT classes and our subsidiary, ŽP Informatika, s.r.o. Targeted cooperation with universities includes scholarships, professional internships, and graduation theses and is focused on obtaining qualified employees for the Company. In 2020, the Company’s full-time equivalent decreased to 2 993, a decrease by 197 employees (6%) compared to the previous year. The decrease correlated with the decrease in contracts and shift work to which work schedules and staffing norms were adjusted during the year. The average monthly income of Company employees in 2020 was EUR 1 248, a 4% decrease compared to 2019, but it is 5% more than the average wage of employees in industry in the Slovak Republic. The added value work productivity amounted to EUR 19 070 per employee, which is a decrease (26%) compared to the previous year. The average income for 2020 for blue-collar employees was EUR 1 073 per employee, down by EUR 46 (4%) compared to 2019. The subsidiaries of the ŽP GROUP employed an additional 1 053 employees in 2020, a decrease of 61 employee compared to 2019. Of the total number of employees of subsidiaries, in Slovakia 794 employees worked in production and services and 48 employees worked at ŽP’s private school. Another 211 employees worked for other companies abroad. In total, the ŽP GROUP employed 4 046 employees in 2020. Our newspaper, Podbrezovan, which has been published for more than 70 years, is the oldest company newspaper in Slovakia. Podbrezovan is distributed to current and retired employees, who receive information about Company life. The newspaper is an irreplaceable source of information for Company employees and the general public in the region about operations at the parent company and its subsidiaries and is published every two weeks with a circulation of approx. 5 750 copies. Our Company’s reputation is also enhanced by our management of Ľupča Castle, which is open to the general public. In cooperation with conservation authorities, Ľupča Castle is being restored to its original appearance using grant programmes. REPORT BY THE BOARD OF DIRECTORS ON BUSINESS ACTIVITIES, ASSETS AND FINANCIAL PERFORMANCE IN 2020 AND INFORMATION ON THE BUSINESS PLAN