ANNUAL REPORT 2021

21 22 Other financial expenses comprise the following items: Year ended 31 December 2021 31 December 2020 Foreign exchange losses 338 004 882 250 Losses from financial derivatives 12 881 5 039 Other financial expenses 12 674 363 370 Total other financial expenses 363 559 1 250 659 27 INCOME TAX Year ended 31 December 2021 31 December 2020 Current tax expense for current period - 1 Deferred tax expense for current period (1 546 333) (1 432 490) Total income tax (1 546 333) (1 432 489) The table below shows the reconciliation of income tax recognised and theoretical income tax calculated using the standard tax rates: Year ended 31 December 2021 31 December 2020 Profit/(loss) before tax 4 112 690 (4 443 000) Tax at the local tax rate of 21% (2020: 21%) 863 665 (933 030) Permanent differences - Non - deductible expenses 800 567 1 811 898 - Non - taxable income (1 017 675) (2 367 161) Effect of a change in the tax rate - - Unrecognised deferred taxes (55 804) 55 804 Other (2 137 086) - Total income tax (1 546 333) (1 432 489) The item Other primarily comprises an unclaimed super - deduction. The actual tax rate differs from the tax rate of 21% (2020: 21%) set by law mainly as a result of differences in the classification of certain items of expenses and income for accounting and tax purposes. Deferred tax is calculated at the income tax rate that is expected to be applied in the period when the asset is to be realised or the liability settled. As a result, the Company applied the income tax rate effective in the following reporting period, ie 21%. In the Slovak Republic, the taxation periods from 2016 until 2020 may be subject to review by the tax authority. The Company prepared the transfer pricing documentation for transactions with foreign related parties in compliance with the tax legislation valid in the Slovak Republic. 28 FINANCIAL DERIVATIVES As at 31 December 2021, the Company recorded no open derivative positions. The Company performed derivative transactions during 2021. In 2021, the Company generated a profit of EUR 20 861 from currency derivative transactions. 29 SUBSIDIES 31 December 2021 Receivables from subsidies Deferred income on subsidies, non-current Deferred income on subsidies, current Release of subsidies in the statement of comprehensive income Investment subsidies 15 000 3 016 373 352 748 344 746 Operating subsidies 37 200 - - 4 756 030 Total subsidies 52 200 3 016 373 352 748 5 100 776 31 December 2020 Investment subsidies 190 370 2 110 738 304 967 294 800 Operating subsidies 1 579 683 - - 8 723 365 Total subsidies 1 770 053 2 110 738 304 967 9 018 165 Receivables from subsidies in the amount of EUR 52 thousand comprise expenses expected to be reimbursed related to employee testing in the amount of EUR 37 thousand and de minimis assistance provided via an innovation voucher of EUR 15 thousand. The statement of comprehensive income primarily includes revenues from: an investment subsidy for the “Reconstruction of the Dust - collection System of the Electric Arc and Ladle Furnace” project (EUR 182 thousand), an investment subsidy for the “Energy Intensity Reduction of ŽP” project (EUR 86 thousand), an investment subsidy for the “Refurbishment, Modernisation and Construction of a Football Stadium” project (EUR 41 thousand), an investment subsidy for the “Construction of FA Skalica” project (EUR 17 thousand), support during the COVID - 19 pandemic (EUR 2 491 thousand), compensation to entrepreneurs for the production of electricity from renewable energy sources (EUR 1 736 thousand), compensation from the environmental fund (EUR 309 thousand), dual education support (EUR 180 thousand), and financial compensation for Ag testing (EUR 37 thousand). NOTES TO THE SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (IN EUROS)