ANNUAL REPORT 2020

Železiarne Podbrezová a.s. ANNUAL REPORT 2020 7 7 Notes to the Separate Financial Statements For the year ended 31 December 2020 (in euros) 1 GENERAL INFORMATION 1.1 Description of the Company Železiarne Podbrezová a.s. (hereinafter the “Company” or “ŽP”) is a joint stock company that was incorporated on 21 April 1992 and established on 1 May1992. The Company’s registered seat is at Kolkáreň 35,97681 Podbrezová, SlovakRepublic and its identification numbers are asfollows: IČO: 31 562 141; DIČ: 2020458704. The Company produces steel pipes for industrial purposes, which are mainly sold to customers in Europe. 1.2 Structure of shareholders and their shares in the share capital As at 31 December 2020, the Company’s shares were held by CPA s.r.o. (79.44%) and other minority shareholders (20.56%). The shareholders’ voting rights equal their ownership interest in the share capital. The Company’s shares are certified registered shares and have not been publicly tradable since 2007. 1.3 Members of Company's bodies Supervisory Board Board of Directors Ing. Ján Banas – Chairman Ing. Vladimír Soták – Chairman Ing. Jozef Marčok – Deputy Chairman Ing. Marian Kurčík – Deputy Chairman Luigi Cuzzolin – Member Ing. Miloš Dekrét – Member Ing. Ľudovít Ihring – Member Ing. Mária Niklová – Member Ing. Tomáš Ihring – Member Ing. Vladimír Soták, Jr. – Member Ing. Jaroslav Romančík – Member Ing. Milan Srnka, PhD – Member Ing. Vladimír Zvarík – Member Ing. Július Kriváň – Member until 29 Jun 2020 Ing. Július Kriváň – Member since 29 Jun 2020 Soňa Lopušná – Member until 23 Oct 2020 Pavol Koštial – Member until 20 Nov 2020 Ing. Ivan Setvák – Member since 23 Oct 2020 Ing. Miroslav Vrabec – Member from 20 Nov 2020 until 15 Jan 2021 Ján Cipciar – Member since 15 Jan 2021 1.4 Unlimited guarantee The Company is not a partner in any unlimited liability company. 1.5 Legal basis for preparing the financial statements These financial statements are the annual separate financial statements of Železiarne Podbrezová a.s. as prepared under Act No. 431/2002 Coll. on Accounting, as amended. The separate financial statements were prepared for the reporting period from 1 January 2020 to 31 December 2020 in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU). These financial statements also represent the statutory financial statements of the Company. The financial statements have been presented for general use. 1.6 Approval of the 2019 financial statements The Company’s 2019 financial statements for the year ended 31 December 2019 were approved by the Annual General Meeting held on 29 June 2020. 1.7 Consolidated financial statements The Company also prepares consolidated financial statements, which are available at the Company’s registered seat and at the Registry Court in Banská Bystrica (Section Sa, File No. 69/S). The Company’s consolidated financial statements are included in the consolidated financial statements of the parent company, i.e. CPA s.r.o. The parent company’s consolidated financial statements are available at the Company’s registered seat and at the Registry Court in Banská Bystrica (Skuteckého 28, 975 59). The consolidated financial statements provide a comprehensive view on the operation of the Company and its subsidiaries. The business names of subsidiaries and joint ventures are specified in Note 7. 1.8 Comparatives As comparatives for the previous reporting period relating to assets, liabilities, and equity items, the financial statements present data reflecting balances as at 31 December 2019. For expenses and revenues, comparatives for the previous reporting period, i.e. year ended 31 December 2019, were used. 2 ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS In the current year, the Company adopted all new and revised standards and interpretations issued by the International Accounting Standards Board (“IASB”) and the International Financial Reporting Interpretations Committee (“IFRIC”) of IASB as endorsed by the European Union that are relevant to its operations and are effective for the reporting periods beginning on 1 January 2020. Initial application of new and amended IFRS standards effective for the current reporting period The following new standards, amendments to the existing standards and new interpretation issued by the International Accounting Standards Board (IASB) and adopted by the EU are effective for the current reporting period: - Amendments to IAS 1 “Presentation of Financial Statements” and IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors” – Definition of Material – adopted by the EU on 29 November 2019 (effective for annual periods beginning on or after 1 January 2020), - Amendments to IFRS 3 “Business Combinations” – Definition of a Business – adopted by the EU on 21 April 2020 (effective for business combinations for which the acquisition date is on or after the beginning of the first annual period beginning on or after 1 January 2020 and to asset acquisitions that occur on or after the beginning of this period), NOTES TO THE SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (IN EUROS)