ANNUAL REPORT 2020

Železiarne Podbrezová a.s. ANNUAL REPORT 2020 65 21 21 PERSONNEL EXPENSES Year ended 31 Dec 2020 31 Dec 2019 Wages and salaries 68 289 132 74 572 978 Social security contributions 27 606 160 30 124 147 Total 95 895 292 104 697 125 The Group had 3 941 employees as at 31 December 2020, of which 200 were managers (31 December 2019: 4 198, of which 181 were managers). The full - time equivalent of the Group’s employees for the year ended 31 December 2020 was 4 013, of which 194 were managers (31 December 2019: 4 268, of which 181 managers). 22 OTHER OPERATING REVENUES AND OTHER OPERATING EXPENSES Other operating revenues comprise the following: Year ended 31 Dec 2020 31 Dec 2019 Profit on the sale of property, plant, equipment and intangibles 574 165 425 818 Profit on the sale of raw materials 498 238 271 557 Proceeds from subsidies (Note 25) 10 073 182 3 267 878 Insurance benefits from insurance companies 450 388 1 089 776 Other operating revenues 2 623 341 1 166 152 Total other operating revenues 14 219 314 6 221 181 Other operating expenses comprise the following: Year ended 31 Dec 2020 31 Dec 2019 Additions to/(release) of provisions for receivables and inventories 1 238 855 969 291 Change in impairment of property, plant and equipment (6 313) 83 251 Insurance premium 1 632 798 1 629 432 Other taxes and charges 1 132 271 1 394 199 Other operating expenses 222 587 843 502 Total other operating expenses 4 220 198 4 919 675 23 OTHER FINANCIAL INCOME/OTHER FINANCIAL EXPENSES Other financial income comprises the following items: Year ended 31 Dec 2020 31 Dec 2019 Foreign exchange gains 1 035 216 862 748 Other financial income 1 301 127 - Total other financial income 2 336 343 862 748 Other financial income mainly comprises unpaid proceeds from the sale of unclaimed certified shares, and a write - off of liabilities from statute - barred dividends and the gain from the sale of emission rights. Other financial expenses comprise the following items: Year ended 31 Dec 2020 31 Dec 2019 Foreign exchange losses 1 919 990 587 899 Losses from financial derivatives 4 136 3 793 Other financial expenses 399 252 233 968 Total other financial expenses 2 323 378 825 660 24 INCOME TAX Year ended 31 Dec 2020 31 Dec 2019 Current tax expense for current period (1 505 471) 1 734 311 Deferred tax expense for current period 1 249 898 15 920 Total income tax ( 255 573) 1 750 231 The table below shows the reconciliation of income tax recognised and theoretical income tax calculated using the standard tax rates: Year ended 31 Dec 2020 31 Dec 2019 Profit/(loss) before tax (3 790 505) 10 145 254 Tax at local tax rate of 21% (2019: 21%) (796 006) 2 130 503 Tax effect of permanent differences, net 306 251 (565 933) Effect of different tax rates of subsidiaries operating in other jurisdictions 111 794 282 064 Effect of a change in the tax rate - - Unrecognised deferred taxes 120 802 (24 721) Additional income tax charges, exchange rate differences on conversions 1 586 (71 682) Total income tax (255 573) 1 750 231 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (IN EUROS)