ANNUAL REPORT 2020

Železiarne Podbrezová a.s. ANNUAL REPORT 2020 34 ŽP – Gastroservis, s.r.o. The company produces fresh, refrigerated and frozen meals, and provides comprehensive catering services for the parent company’s employees, several subsidiaries as well as external customers. In 2020, the company supplied 24% of meals outside the parent company. In 2020, the company sold products, services and merchandise totalling EUR 2 652 thousand, a decrease of more than 16% due to limited meals for employees and external entities. The company reported a profit after tax of EUR 12 thousand. The company’s equity as at 31 December 2020 amounted to EUR 1 027 thousand, which is 77% of the asset coverage. FK Železiarne Podbrezová a.s. The company is one of two successor companies of ŽP Šport, a.s. Its main task is to operate the professional first-league football club and all youth teams. In the 2019/2020 season, the A-team football team left the top flight after 6 years and moved to the 2nd league. The 2nd league had lower number of matches due to the pandemic and FK Železiarne Podbrezová finished in 4th place. The team will continue in the 2nd league in the following season 2020/2021. The youth teams retained the status of Football Academy. In December 2020, the parent company sold 65% of the company’s shares to new investors to gain access to new ways of management and care for the football club and to diversify income. In 2020, the company generated revenues from the sale of merchandise and services totalling EUR 1 553 thousand and reported a loss of EUR 186 thousand. The company’s equity as at 31 December 2020 amounted to EUR 293 thousand, which is approx. 52% of the asset coverage. ŠK Železiarne Podbrezová a.s. The company is the second successor company of ŽP Šport, a.s. The minority shareholders include the municipality of Podbrezová and the civic association, Telovýchovná jednota ŽP Šport Podbrezová. The company operates a professional bowling club and youth cross-country skiing, cycling and downhill skiing teams. The bowling team has achieved notable successes in club competitions. Unfortunately, the team did not make it to the Final Four tournament, which was postponed to 2021. Due to a number of restrictions in 2020, the Team World Cup in Podbrezová was also cancelled. In 2020, the company generated revenues totalling EUR 513 thousand and reported a profit of EUR 78 thousand. The company’s equity as at 31 December 2020 amounted to EUR 412 thousand, which is 84% of the asset coverage. ŽP Informatika s.r.o. ŽP Informatika s.r.o. provides comprehensive outsourcing services to Železiarne Podbrezová a.s. in information technology and information systems. The company provides comprehensive services to all ŽP GROUP companies and its services are also provided to external entities. In 2020, the company generated revenues from the sale of merchandise and own outputs totalling EUR 4 345 thousand and reported a profit after tax of EUR 58 thousand. The company’s equity as at 31 December 2020 amounted to EUR 2 313 thousand, which is 78% of the asset coverage. REPORT BY THE BOARD OF DIRECTORS ON BUSINESS ACTIVITIES, ASSETS AND FINANCIAL PERFORMANCE IN 2020 AND INFORMATION ON THE BUSINESS PLAN