ANNUAL REPORT 2020

Železiarne Podbrezová a.s. ANNUAL REPORT 2020 60 16 Software Goodwill Assets under construction Total Cost At 1 Jan 2019 6 207 243 1 768 335 180 311 8 155 889 Additions - - 444 559 444 559 Disposals (162 325) - - (162 325) Transfers 335 147 - (335 147) - Foreign exchange differences 565 - - 565 At 31 Dec 2019 6 380 630 1 768 335 289 723 8 438 688 Accumulated amortisation At 1 Jan 2019 5 055 177 - 6 606 5 061 783 Amortisation 279 607 - - 279 607 Disposals (162 325) - - (162 325) Transfers - - - - Foreign exchange differences 310 - - 310 At 31 Dec 2019 5 172 769 - 6 606 5 179 375 Carrying amount At 1 Jan 2019 1 152 066 1 768 335 173 705 3 094 106 At 31 Dec 2019 1 207 861 1 768 335 283 117 3 259 313 The subsidiary, PIPEX ITALIA S.p.A., is allocated goodwill amounting to EUR 1 183 thousand as at 31 December 2020 (31 December 2019: EUR 1 183 thousand). As at 31 December 2020, no impairment of goodwill was identified by testing the goodwill for impairment. Goodwill amounting to EUR 585 thousand arose on the acquisition of a 31.74% ownership interest in ŽP EKO QELET a.s. in 2005, which was recognised in the statement of financial position. No goodwill arose upon the acquisition of a 34.51% share in ŽP EKO QELET a.s. in 2007, as the transaction was between entities under common control, and the Company accounted for such transaction using the Pooling of Interests method. Upon the acquisition of the additional 0.02% ownership interest owing to an increase in the Company’s registered capital in June 2008, negative goodwill arose, which was fully written off in the statement of comprehensive income for the year ended 31 December 2008. 8 OTHER FINANCIAL ASSETS 31 Dec 2020 31 Dec 2019 Investments available for sale: STABILITA, d.d.s., a.s., Slovakia 94 387 94 387 PROJECT STEEL SUPPLIES PTY LTD, Australia 65 000 65 000 Impairment - - Investments available-for-sale, net 159 387 159 387 TOM- FERR Zrt. 1 937 713 2 178 794 FK Zeleziarne Podbrezova a.s. 98 170 - Tále ski & golf resorts s. r. o. 12 000 - Investments in associates 2 047 883 2 178 794 Other non - current receivables 412 509 204 686 Total other financial assets 2 619 779 2 542 867 Investments available for salemainly include unconsolidatedsubsidiaries and insignificant companies in whichthe Group hasan ownership interest of less than 20%. These companies are based in Slovakia or in the Czech Republic, and one company is based in Australia. The companies are not registered ona stock exchange. The investments are recognisedat acost less impairment, if any,as theirfair value cannot be reasonably estimated. 9 DEFERRED TAX ASSET AND LIABILITY The table below presents the most significant deferred tax assets and (liabilities) reported by the Group and movements in these items during the current and previous accounting period: 1 Jan 2020 Changes owing to the sale of interests in subsidiaries (Debit)/Credit to profit for current year (Debit)/Credit to other comprehensive income and losses 31 Dec 2020 Property, plant and equipment (13 191 950) - 1 325 690 - (11 866 260) Inventories 643 897 - 150 637 - 794 534 Receivables 13 402 - (1 383) - 12 019 Liabilities 261 297 - 12 720 - 274 017 Provisions 273 029 - (74 286) - 198 743 Employee benefits 1 703 703 - (113 327) - 1 590 376 Tax loss carry - forward 77 504 - (19 376) - 58 128 Subsidies, research and development 627 536 - (61 555) - 565 981 Investment in joint ventures (30 778) - 30 778 - - Net deferred tax (9 622 360) - 1 249 898 - (8 372 462) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (IN EUROS)