ANNUAL REPORT 2020

Železiarne Podbrezová a.s. ANNUAL REPORT 2020 12 12 5 PROPERTY, PLANT AND EQUIPMENT Land and buildings Plant and equipment Assets under construction Total Cost At 1 January 2020 126 428 243 214 193 100 4 787 405 345 408 748 Additions - - 13 378 857 13 378 857 Disposals (584 652) (1 774 039) (22 374) (2 381 065) Transfers 2 701 881 8 389 722 (11 091 603) - At 31 December 2020 128 545 472 220 808 783 7 052 285 356 406 540 Accumulated depreciation, provisions At 1 January 2020 74 536 299 159 305 895 47 600 233 889 794 Depreciation, recognition of the net book value 2 453 321 5 580 177 - 8 033 498 Impairment loss (87 302) - (1 304) (88 606) Disposals (345 062) (1 774 039) - (2 119 101) Transfers - - - - At 31 December 2020 76 557 256 163 112 033 46 296 239 715 585 Carrying amount At 1 January 2020 51 891 944 54 887 205 4 739 805 111 518 954 At 31 December 2020 51 988 216 57 696 750 7 005 989 116 690 955 The Company does not use any manufacturing equipment leased under a finance lease. As at 31 December 2020, the cost of fully - depreciated items of property, plant and equipment that are still in use was EUR 50 388 thousand (31 December 2019: EUR 54 559 thousand). Property, plant and equipment include the Slovenská Ľupča castle at a net book value of EUR 2 926 thousand (31 December 2019: EUR 2 998 thousand), which is partly open to the public and partly used for representation purposes. Based on the assessment of indications of impairment as per IAS 36 – Impairment of Assets, the Company decided that there was no need to quantify the impairment loss with regard to the castle. In 2007, the Company began to revise the remaining estimated 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 at a cost of EUR 778 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. Assets under lien As at 31 December 2020,the net book value ofthe Company’s non - current tangible assets pledged tosecure bank loans amounted to EUR 27 347 thousand (fair value of approx. EUR 53 million). The net book value of non - current tangible assets with restricted handling by the Company (easement) was EUR 2 500 thousand. Insurance of assets Non - current assets are insured with Allianz - Slovenská poisťovňa a.s. against all risks up to the amount of their cost. Costs of non - current assets are updated to new values that were calculated by re - indexing original costs to amounts corresponding to the fair value of insured assets. Insured Assets Type of insurance Name and seat of the insurance company Insured amount Set of immovable assets Against all risks Allianz - Slov. poisťovňa, a.s., Bratislava 301 780 244 Set of movable assets Against all risks Allianz - Slov. poisťovňa, a.s., Bratislava 294 694 841 Acquisition of new non - current tangible assets Against all risks Allianz - Slov. poisťovňa, a.s., Bratislava 2 000 000 6 INTANGIBLE ASSETS Software Investments in progress Total Cost At 1 January 2020 597 491 - 597 491 Additions - 80 242 80 242 Disposals (2 759) - (2 759) Transfers - - - At 31 December 2020 594 732 80 242 674 974 Accumulated amortisation At 1 January 2020 592 811 - 592 811 Amortisation 492 - 492 Disposals (2 759) - (2 759) At 31 December 2020 590 544 - 590 544 Carrying amount At 1 January 2020 4 680 - 4 680 At 31 December 2020 4 188 80 242 84 430 NOTES TO THE SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (IN EUROS)