ANNUAL REPORT 2020

Železiarne Podbrezová a.s. ANNUAL REPORT 2020 59 15 Right - of - use assets are included in land and buildings, and plant, machinery and equipment as follows: Land and buildings Plant, machinery and equipment Total Cost At 1 Jan 2020 4 907 578 5 340 714 10 248 292 Additions 93 826 1 314 860 1 408 686 Disposals (361 392) (24 367) (385 759) 31 Dec 2020 4 640 012 6 631 207 11 271 219 Accumulated depreciation At 1 Jan 2020 412 936 1 084 118 1 497 054 Depreciation 386 022 730 967 1 116 989 Disposals (31 806) (11 436) (43 242) 31 Dec 2020 767 152 1 803 649 2 570 801 Net book value At 1 Jan 2020 4 494 642 4 256 596 8 751 238 31 Dec 2020 3 872 860 4 827 558 8 700 418 As at 31 December 2020, the cost of fully - depreciated items of property, plant and equipment, which were still in use, was EUR 94 470 thousand (31 December 2019: EUR 98 288 thousand). Property, plantandequipment includeSlovenskáĽupčacastleata net bookvalue of EUR 2 926thousand(31 December2019: EUR2 998thousand), which is partlyavailableto the public and partly used for representation purposes.Based onthe assessment of impairment indicationsas per IAS 36 “Impairment of assets”, the Group decided that there was no need to quantify an impairment loss with regard to the castle. The Group revised the estimated remaining useful lives of non - current tangible assets and for the purpose of depreciation, it broke down material items of assets into material parts as required by IAS 16 – Property, Plant and Equipment. As a result of revising the useful life, the depreciation charges of non - current tangible assets were reduced by EUR 355 thousand in 2020. Major additions to non - current tangible assets in 2020 included technical improvements to entry rod production – replacement of a rack at a cost of EUR 1 079 thousand, technical improvements to tube production – replacement of cut - off saws No. 2 and No. 3 from Framag at a cost of EUR 2 269 thousand, technical improvements to finishing lines I. and II. at a cost of EUR 848 thousand. Lighting was reconstructed in the tube drawing mill halls at a cost of EUR 731 thousand, reconstruction of SSOSH ŽP – workshop and laboratory ata cost of EUR778 thousand. There is a significant increase in the acquisition of new assets, Bypass finishing line No. 3 at a cost of EUR 1 789 thousand (ŽP a.s.). Assets under lien At 31 December 2020, the immovable and movable assets of ŽP with a carrying amount of EUR 27 347 thousand (fair value of approx. EUR 53 million) and immovable and movable assets of other consolidated companies with a carrying amount of EUR 28 963 thousand are subject to a registered debenture to secure certain bank loans (see Note 14). The net book value of non - current tangible assets with restricted handling by the Group (easement) was EUR 2 500 thousand. Insurance of assets Insured assets Type of insurance Name and address of the insurance company Amount insured Set of immovable assets Against all risks ALLIANZ Slovenská poisťovňa a. s., Bratislava; AXA Seguros Generales; ZURICH; Allianz pojišťovna, a.s. Prague; UNIQA (AON Genova); Sopockie Towarzystwo Ubezpieczeń Ergo Hestia, Sopot; STU Ergo Hestia Aon Risk services Northeats - Century Surety Company 360 927 220 Set of movable assets Against all risks ALLIANZ Slovenská poisťovňa a. s., Bratislava; AXA Seguros Generales; ZURICH; Allianz pojišťovna, a.s. Prague; UNIQA (AON Genova) Sopockie Towarzystwo Ubezpieczeń Ergo Hestia, Sopot; STU Ergo Hestia 358 168 924 Acquisition of new non - current tangible assets Against all risks Allianz - Slovenská poisťovňa, a.s. Bratislava 2 185 820 7 INTANGIBLE ASSETS AND GOODWILL Software Goodwill Assets under construction Total Cost At 1 Jan 2020 6 380 630 1 768 335 289 723 8 438 688 Additions - - 311 513 311 513 Disposals (138 158) - - (138 158) Transfers 367 061 - (367 061) Foreign exchange differences (3 916) - - (3 916) At 31 Dec 2020 6 605 617 1 768 335 234 175 8 608 127 Accumulated amortisation At 1 Jan 2020 5 172 769 - 6 606 5 179 375 Amortisation 282 207 - - 282 207 Disposals (138 158) - - (138 158) Transfers - - - Foreign exchange differences (2 385) - - (2 385) At 31 Dec 2020 5 314 433 - 6 606 5 321 039 Carrying amount At 1 Jan 2020 1 207 861 1 768 335 283 117 3 259 313 At 31 Dec 2020 1 291 184 1 768 335 227 569 3 287 088 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (IN EUROS)