ANNUAL REPORT 2021

Annual report 2021 Železiarne Podbrezová a.s. 16 Changes in Total Sales by Geographical structure (revenues in EUR ’000) 2017 2018 2019 2020 2021 Slovakia 26 301 26 140 24 568 21 842 25 865 Czech Republic 31 601 42 963 31 058 21 130 42 975 Other EU countries 156 718 193 156 169 024 131 890 208 232 Other European countries 13 471 17 008 13 198 14 587 25 530 U.S.A. 8 523 11 053 9 924 5 905 6 219 Other export 1 999 612 3 285 1 060 1 338 Total sales 238 613 290 932 251 057 196 414 310 159 Application of Tubes in 2021 Seamless hot-rolled tubes Precision seamless cold-drawn tubes In 2021, a recertification audit under ISO 9001:2015 and a supervision audit under IATF 16949:2016 were performed as part of the qualitymanagement system at Železiarne Podbrezová a.s. The retained certificates demonstrate that the production processes are verified and in compliance with the requirements specified in the relevant standards. We also passed recertification audits for the environmental management system under EN ISO 14001:2015 and the occupational safety management system under ISO 45001:2018. Total revenues from the sale of products, merchandise and services to our customers in 2021 totalled EUR 310 159 thousand, of which 92% were exports. Revenues increased by EUR 113 746 thousand (58%) compared to 2020. The increase in revenues was caused by an increase in revenues of all the Company’s products and by an increase in the selling prices of final products. The geographical structure of revenues in 2021 was similar to previous years. EU countries remained our main market in the following order: Germany, the Czech Republic, Poland, Italy, Hungary, Slovakia and Spain. There were no significant changes compared to previous years in the sectors in which our products were used. They are primarily used in the production of machinery and equipment (38-49%), energy industry (22-47%), hydraulic equipment, oil and gas transportation and the automotive industry. 47% 49% 38% 22% 12% 18% 3% 9% 2% Power generation Mechanical engineering Mechanical engineering Power generation Transport of flammable media Hydraulics & pneumatics Construction industry Automotive industry Other industries REPORT BY THE BOARD OF DIRECTORS ON BUSINESS ACTIVITIES, ASSETS AND FINANCIAL PERFORMANCE IN 2021 AND INFORMATION ON THE BUSINESS PLAN