ANNUAL REPORT 2020

Železiarne Podbrezová a.s. ANNUAL REPORT 2020 51 7 Notes to the Consolidated Financial Statements For the year ended 31 December 2020 (in euros) 1 GENERAL INFORMATION 1.1 Description of the Company Železiarne Podbrezováa.s.(hereinafteralsothe“Company”or“ŽP”) isa jointstockcompanythatwas incorporated on21 April1992and established on 1 May 1992. The Company’s registered seat is at Kolkáreň 35, 976 81 Podbrezová, Slovakia (Company ID: 31 562 141, Tax ID: 2020458704). The Company produces steel pipes for industrial purposes, which are mainly sold to customers in Europe. The Company’s consolidated financial statementsfortheyear ended31December2020comprisetheCompanyand itssubsidiaries (together referredtoasthe“Group”),andtheGroup’s share in a joint venture. The Group is active in the production and sale of steel pipes, machine - industry production, and tourism (see Note 3c). 1.2 Structure of shareholders and their shares in registered capital As at 31 December 2020, the Company’s shares were held by CPA s.r.o. (79.44%) and other minority shareholders (20.56%). The shareholders’ voting rights equal their ownership interest in the registered capital. The Company’s shares are certified registered shares and have been publicly non - tradable since 2007. 1.3 Members of Company’s bodies Supervisory Board Board of Directors Ing. Ján Banas – Chairman Ing. Vladimír Soták – Chairman Ing. Jozef Marčok – Deputy Chairman Ing. Marian Kurčík – Deputy Chairman Luigi Cuzzolin – Member Ing. Miloš Dekrét – Member Ing. Ľudovít Ihring – Member Ing. Mária Niklová – Member Ing. Tomáš Ihring – Member Ing. Vladimír Soták, Jr. – Member Ing. Jaroslav Romančík – Member Ing. Milan Srnka, PhD – Member Ing. Vladimír Zvarík – Member Ing. Július Kriváň – Member until 29 Jun 2020 Ing. Július Kriváň – Member since 29 Jun 2020 Soňa Lopušná – Member until 23 Oct 2020 Pavol Koštial – Member until 20 Nov 2020 Ing. Ivan Setvák – Member since 23 Oct 2020 Ing. Miroslav Vrabec – Member from 20 Nov 2020 until 15 Jan 2021 Ján Cipciar – Member since 15 Jan 2021 1.4 Unlimited guarantee The Company is not a partner to any unlimited liability company. 1.5 Legal basis for preparing the financial statements These financial statements are the annual consolidated financial statements of ŽP and its subsidiaries as prepared under Act No. 431/2002 Coll. on Accounting,as amended. The consolidated financial statements were prepared forthe reporting period from 1 January 2020 to 31 December 2020 in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union (“EU”). The financial statements are intended for general use. 1.6 Approval of the 2019 Consolidated Financial Statements On 29 June 2020, the Annual General Meeting approved the consolidated financial statements of Železiarne Podbrezová a.s. for the year ended 31 December 2019. 1.7 Consolidated financial statements of the parent company The Company’s consolidated financial statements are included in the consolidated financial statements of the parent company, CPA s.r.o. The consolidated financial statements of CPA s.r.o. are available at the Company’s registered seat (Kolkáreň 35, Nový závod, 976 81 Podbrezová) and at the Registry Court in Banská Bystrica (Skuteckého 28, 975 59). 1.8 Comparatives As comparatives for the previous reporting period relating to assets, liabilities, and equity items, the financial statements present data reflecting balances as of 31 December 2019. For expenses and revenues, comparatives for the previous reporting period, ie year ended 31 December 2019, were used. 2 ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS In the current year, the Group adopted all new and revised standards and interpretations issued by the International Accounting Standards Board (“IASB”) and the International Financial Reporting InterpretationsCommittee(“IFRIC”) of IASBas endorsed bythe European Unionthatare relevant to its operations and are effective for the reporting periods beginning on 1 January 2020. Initial application of new and amended IFRS standards effective for the current reporting period The following new standards, amendments to the existing standards and new interpretation issued by the International Accounting Standards Board (IASB) and adopted by the EU are effective for the current reporting period: - Amendments to IAS 1 “Presentation of Financial Statements” and IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors” – Definition of Material – adopted by the EU on 29 November 2019 (effective for annual periods beginning on or after 1 January 2020), - Amendments to IFRS 3 “Business Combinations” – Definition of a Business – adopted by the EU on 21 April 2020 (effective for business combinations for which the acquisition date is on or after the beginning of the first annual period beginning on or after 1 January 2020 and to asset acquisitions that occur on or after the beginning of this period), NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (IN EUROS)