ANNUAL REPORT 2020

Železiarne Podbrezová a.s. ANNUAL REPORT 2020 33 Transmesa USA, Inc. The Spanish company, TRANSMESA, established a company in 2015 in the US, which serves US customers. In autumn 2017, a processing technology for short tubes was installed in a leased warehouse and production premises to provide these services in the US. The proximity of customers and own warehouse with a higher number of products increased the flexibility, security and speed of supplies and reduced the cost of transporting TRANSMESA’s products to the US. In early 2019, the installation of the second grinding line was completed, which increased the company’s capacity for its customers. In 2020, the company generated sales revenues totalling EUR 4 060 thousand, an over 40% y/y increase, and reported a profit of EUR 388 thousand. ZANINONI SLOVAKIA, s.r.o. The company’s core business is the provision of forwarding services for the transportation of Železiarne Podbrezová’s products to all global markets and services for the parent company and subsidiaries. Last year, the company provided services in the total amount of EUR 10 253 thousand and reported a profit after tax of EUR 522 thousand. The company’s equity as at 31 December 2020 amounted to EUR 2 199 thousand, which is almost 65% of the asset coverage. In July 2020, the parent company acquired the last 10% of the shares from its Italian partner and completed the process of ownership consolidation. Tále, a.s. Tále, a.s. is a part of the business of Železiarne Podbrezová a.s., which operates in the tourism sector. It operates a sports resort comprising a ski centre, the Gray Bear 18-hole championship golf course and the Little Bear 9-hole training course, which has had night lighting since 2017. The resort includes two hotels, which in addition to the standard services, also provide congress tourism and golf vacation packages. The company regularly invests in upgrading assets and increasing the level of provided services. Tále offers a high-quality golf course, which is popular with individuals, and a venue for commercial, sports and club tournaments. Given the high-quality snowmaking and big slopes, the winter ski centre mainly serves families with children and is also popular with schools and downhill skiing courses. This is good for hotels and restaurants, which are fully booked during the peak season – Christmas and spring holidays. In 2020, the sports resort in Tále was affected by the coronavirus pandemic, which essentially ended the winter skiing season in March. The summer season was also worse than usual, as a number of corporate sports events were cancelled. Strict anti-pandemic restrictions returned in the autumn and the company operated in a very limited mode. Subsequently, with the deteriorating epidemic situation, tourism services were essentially banned, which will be reflected in significantly worse operating results for 2021. In December 2020, the company established a joint venture, Tále ski & golf resorts s. r. o., with a partner from the tourism business to jointly invest in new hotel and restaurant services to improve them and introduce new know-how. In 2020, the company generated revenues from the sale of merchandise and services amounting to EUR 2 851 thousand, an almost 19% decrease compared to the previous year. The company incurred a loss of EUR 303 thousand for 2020. As at 31 December 2020, the company’s assets totalled EUR 16 445 thousand, with 94% covered by equity. REPORT BY THE BOARD OF DIRECTORS ON BUSINESS ACTIVITIES, ASSETS AND FINANCIAL PERFORMANCE IN 2020 AND INFORMATION ON THE BUSINESS PLAN