ANNUAL REPORT 2020

Železiarne Podbrezová a.s. ANNUAL REPORT 2020 35 ŽP Bezpečnostné služby s.r.o. ŽP Bezpečnostné služby provides comprehensive private security services for Železiarne Podbrezová a.s. and its subsidiaries in the ŽP GROUP and also cooperates with external security service companies. In 2020, the company generated revenues from the sale of own outputs totalling EUR 1 683 thousand. The company’s equity as at 31 December 2020 amounted to EUR 360 thousand and the company reported a profit of EUR 37 thousand. The company had 84 employees. ŽP VVC s.r.o. The company performs research and development activities in physical metallurgy, metal forming, material engineering, modelling, process simulation and data engineering. Applied research and development are mainly carried out for the parent company’s needs and the company also cooperates with universities and research entities. In 2020, the company generated revenues from the sale of own outputs totalling EUR 905 thousand. The company’s equity as at 31 December 2020 amounted to EUR 234 thousand and the company reported a profit after tax of EUR 39 thousand. ŽP Rehabilitácia s.r.o. The company was established in 2011 and provides outpatient physiotherapy, balneology and therapeutic rehabilitation services primarily for ŽP GROUP employees, and for the public. In 2020, the company’s activities were limited by pandemic measures, resulting in a decline in outputs and rehabilitation treatments were postponed to months when they were allowed by the situation. The company generated own outputs totalling EUR 210 thousand. The company’s equity as at 31 December 2020 amounted to EUR 172 thousand and the company reported a profit of EUR 37 thousand. UHL Holding, a.s. In 2020, Železiarne Podbrezová a.s. acquired 100% of the shares of UHL Holding, a.s., planning strategic synergy in the tourism sector. The company was established in 2019 and its main asset is the 100% share in the subsidiary UHL s.r.o., which owns significant shares in the local forest landowners association. The company’s revenues are very low and it ended 2020 with a loss of EUR 6 thousand. The company’s equity as at 31 December 2020 amounted to EUR 554 thousand. As part of the rationalisation of ŽP GROUP, Železiarne Podbrezová a.s., as the sole shareholder of UHL Holding, a.s., plans to decide on its dissolution in 2021 by merger with the parent company. REPORT BY THE BOARD OF DIRECTORS ON BUSINESS ACTIVITIES, ASSETS AND FINANCIAL PERFORMANCE IN 2020 AND INFORMATION ON THE BUSINESS PLAN