ANNUAL REPORT 2020

Železiarne Podbrezová a.s. ANNUAL REPORT 2020 61 17 1 Jan 2019 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 2019 Property, plant and equipment (12 648 494) - (543 456) - (13 191 950) Inventories 588 966 - 54 931 - 643 897 Receivables 19 133 - (5 731) - 13 402 Liabilities 375 072 - (113 775) - 261 297 Provisions 283 207 - (10 178) - 273 029 Employee benefits 1 555 471 - 148 232 - 1 703 703 Tax loss carry - forward - - 77 504 - 77 504 Subsidies, research and development 188 365 - 439 171 - 627 536 Investment in joint ventures - - (30 778) - (30 778) Net deferred tax (9 638 280) - 15 920 - (9 622 360) In accordance with the Group’s accounting policies, certain deferred tax assets and liabilities were offset. The table below presents the balances of deferred tax (after offsetting) for their reporting in the statement of financial position: 31 Dec 2020 31 Dec 2019 Deferred tax asset 450 001 491 291 Deferred tax liability (8 822 463) (10 113 651) Total (8 372 462) (9 622 360) 10 INVENTORIES 31 Dec 2020 31 Dec 2019 Material and spare parts 32 224 374 34 259 821 Work in progress 16 352 153 16 377 622 Finished goods 30 693 375 32 485 552 Merchandise 1 502 097 1 293 226 Provision (1 999 069) (1 219 885) Total inventories 78 772 930 83 196 336 As at 31 December 2020, no inventories were pledged to secure bank loans (31 December 2019: EUR 0) (see Note 14). As at 31 December 2020, due to a decrease in the net realisable value of inventories, the Group created a provision for inventories based on their ageing structure or due to a decrease in their net realisable value. The change in the balance of the provision for inventories is included in “Other operating expenses” and “Other operating income”. Insurance of inventories Insured assets Type of insurance Name and address of the insurance company Amount insured Inventories (work in progress, semi - finished goods, finished products) Against all risks Allianz - Slovenská poisťovňa, a.s., Bratislava; Zurich (AONGenova); Axa, Zurich 68 313 242 11 TRADE RECEIVABLES AND OTHER FINANCIAL ASSETS 31 Dec 2020 31 Dec 2019 Trade receivables 50 168 904 56 935 091 Receivables from related parties 3 195 3 086 Other tax receivables 3 959 406 3 466 130 Receivables from subsidies 1 962 063 50 337 Other receivables 10 604 431 2 357 440 Allowance for doubtful amounts (1 216 235) (1 458 781) Total trade and other receivables 65 481 764 61 353 303 Total trade receivables and other financial assets 65 481 764 61 353 303 Receivables from subsidies are further described in Note 25. Other receivables totalling EUR 10 446thousand primarily comprise a notarial custody and a provided short - term borrowing (31 December 2019: EUR 2 031 thousand). As at 31December 2020, trade receivables with a carrying amount of EUR 8 913 thousand (31 December 2019: EUR 8 078 thousand) were pledged to secure certain bank loans (see Note 14). The following is a breakdown of trade and other receivables: 31 Dec 2020 31 Dec 2019 Current receivables 60 993 694 50 820 355 Overdue receivables 5 704 305 11 991 729 Total 66 697 999 62 812 084 The ageing structure of overdue receivables that were not provided for: 31 Dec 2020 31 Dec 2019 Less than 90 days 4 682 491 10 380 713 90 – 180 days 243 803 517 141 180 – 360 days 7 273 3 047 More than 360 days 3 171 - Total 4 936 738 10 900 901 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (IN EUROS)