ANNUAL REPORT 2021

Annual report 2021 Železiarne Podbrezová a.s. 18 ENVIRONMENTAL POLICY Environmental protection and the occupational health and safety of employees is a long-term Company priority. The occupational health and safety management system is a permanent part of the Company’s business activities. Based on the previous effectiveness and functionality analyses of individual management systems, the Company implemented a joint internal combined audit of the two management systems for the environment and occupational health and safety. The integrated management system combines: The environmental management system (SEM) under ISO 14001; In May 2021, SGS Slovakia spol. s r.o. performed a recertification audit and confirmed the good functioning of the integrated management system. Compliance with requirements and functions under ISO 14001 and ISO45001 standards was confirmed by new certificates valid for three years until June 2024. We performed a total of 10 environmental activities (total costs EUR 1 179 thousand) and fulfilled 31 objectives to improve occupational health and safety (total costs: EUR 3 483 thousand) under the SEM programme, the OSH Improvement Programme and other improvement measures in 2021. In June 2020, the European Commission published basic underlying documents for the EU Taxonomy, a classification system establishing a list of environmentally sustainable economic activities, whose goal is to direct investments towards sustainable projects. The list of individual environmentally sustainable activities including detailed technical screening criteria was subsequently published in the first Climate Delegated Act in April 2021. The EU Taxonomy requires large companies to disclose the share of their turnover, operating expenditures (OPEX) and capital expenditures which are associated with environmentally sustainable activities as defined in the Taxonomy Regulation and the delegated acts. In 2022, companies are not yet required to use detailed technical screening criteria to assess the alignment of their activities with the EU Taxonomy. Mandatory disclosure for the financial year 2021 is simplified and only includes reporting on the Taxonomy eligibility. Activities are considered as Taxonomy- eligible when they are listed and described in the delegated acts irrespective of whether that economic activity meets any or all the technical screening criteria laid down in those delegated acts. The Company analyses the requirements of the new EU legislation and the internal data necessary to assess the alignment of its activities with the EU taxonomy and their disclosure, but it does not provide this information for 2021 due to the complexity and unavailability of internal data. HUMAN RESOURCES Železiarne Podbrezová a.s., as a major employer, has addressed HR management in the long-term and systemically. Looking after our employees is a Company priority and encompasses recruitment, selection and education of young people, remuneration, an occupational health and safety system, and continual education and benefits. In 2021, as in every year, two fundamental documents were adopted: the 2021 Collective Agreement concluded between VZO OZ KOVO of Železiarne Podbrezová (the KOVO trade union works council) and the Board of Directors of Železiarne Podbrezová a.s., and the Programme of the Board of Directors of Železiarne Podbrezová a.s., which cover a comprehensive personnel, wage, social and occupational health and safety policy programme. The Company fully met its obligations arising from the above documents. The total amount of EUR 565 thousand was spent from the social fund in 2021. The occupational health and safety manage- ment system (SRBP) under ISO 45001. Catering services for employees 24/7 accident insurance for all employees Children’s holiday camps Social aid Employee rehabilitation vouchers EUR 437 thousand; EUR 47 thousand; EUR 43 thousand; EUR 22 thousand; EUR 15 thousand; REPORT BY THE BOARD OF DIRECTORS ON BUSINESS ACTIVITIES, ASSETS AND FINANCIAL PERFORMANCE IN 2021 AND INFORMATION ON THE BUSINESS PLAN