ANNUAL REPORT 2020

Železiarne Podbrezová a.s. ANNUAL REPORT 2020 58 14 Provision for employee benefits The Group uses a model to calculate employee benefits (see Note 3(p) above), which reflects the expected employee turnover, wage growth, discount factor and all of the benefits the Company plans to pay to the employees. 5 CHANGES IN THE GROUP In 2020, the Group acquired a 100% share in UHL holding a.s., purchased the remaining 10% in ZANINONI SLOVAKIA, s.r.o. (subsidiary), and sold a 64.98% share in FK Železiarne Podbrezová a.s. in December,asa result of whichthe Group lostcontrol over the company and now hassubstantial influence in it. 6 PROPERTY, PLANT AND EQUIPMENT Land and buildings Plant and equipment Assets under construction Total Cost At 1 Jan 2020 211 823 589 319 289 212 5 746 825 536 859 626 Additions 1 755 30 814 20 170 178 20 202 747 Additions from the acquisition of a share in a subsidiary 1 889 414 - - 1 889 414 Disposals (938 377) (4 581 208) (89 605) (5 609 190) Disposals from the sale of a subsidiary (181 304) (263 732) - (445 036) Transfers 5 329 657 12 675 309 (18 004 966) - Foreign exchange differences (99 340) (62 510) - (161 850) At 31 Dec 2020 217 825 394 327 087 885 7 822 432 552 735 711 Accumulated depreciation and impairment At 1 Jan 2020 98 322 008 234 573 573 47 601 332 943 182 Depreciation, recognition of the net book value 4 615 499 11 331 895 - 15 947 394 Additions from the acquisition of a share in a subsidiary - - - - Impairment loss (87 302) 13 099 (1 304) (75 507) Disposals (421 199) (4 581 208) - (5 002 407) Disposals from the sale of a subsidiary (33 647) (80 590) (114 237) Foreign exchange differences (27 053) (25 818) - (52 871) At 31 Dec 2020 102 368 306 241 230 951 46 297 343 645 554 Carrying amount At 1 Jan 2020 113 501 581 84 715 639 5 699 224 203 916 444 At 31 Dec 2020 115 457 088 85 856 934 7 776 135 209 090 157 Land and buildings Plant and equipment Assets under construction Total Cost At 1 Jan 2019 204 462 346 307 010 255 6 158 526 517 631 127 Additions 4 907 578 353 595 21 818 908 27 080 081 Additions from the acquisition of a share in a subsidiary - - - - Disposals (683 695) (7 041 521) (161 154) (7 886 370) Disposals from the sale of a subsidiary - - - - Transfers 3 112 423 18 960 633 (22 073 056) - Foreign exchange differences 24 937 6 250 3 601 34 788 At 31 Dec 2019 211 823 589 319 289 212 5 746 825 536 859 626 Accumulated depreciation and impairment At 1 Jan 2019 93 892 733 230 721 022 176 597 324 790 352 Depreciation, recognition of the net book value 4 620 758 10 890 069 - 15 510 827 Additions from the acquisition of a share in a subsidiary - - - - Impairment loss 70 304 - (128 996) (58 689) Disposals (267 780) (7 041 346) - (7 309 126) Disposals from the sale of a subsidiary - - - - Foreign exchange differences 5 993 3 825 - 9 818 At 31 Dec 2019 98 322 008 234 573 573 47 601 332 943 182 Carrying amount At 1 Jan 2019 110 569 613 76 289 233 5 981 929 192 840 775 At 31 Dec 2019 113 501 581 84 715 639 5 699 224 203 916 444 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (IN EUROS)