ANNUAL REPORT 2021

25 Share capital Legal reserve fund Retained earnings Total Opening balance at 1 January 2020 81 061 16 212 113 761 211 034 Dividends paid - - (2 384) (2 384) Total comprehensive income/(loss) for the year - - (3 011) (3 011) Closing balance at 31 December 2020 81 061 16 212 108 366 205 639 Dividends paid - - - - Total comprehensive income/(loss) for the year - - 5 659 5 659 Closing balance at 31 December 2021 81 061 16 212 114 025 211 298 Information from the Separate Statement of Changes in Equity for the year ended 31 December 2021 (in EUR ’000) A significant source of the Company’s external funding were loans from natural and legal persons totalling EUR 14.6 million, which supported the Company’s financial stability. As at 31 December 2021, the Company had no open derivative positions. SETTLEMENT OF PAYABLES The Company’s financial situation was balanced and stable and the Company fulfilled its obligations to financial institutions, state and public authorities, employees, shareholders and suppliers in a due and timely manner and in the agreed amounts. FINANCIAL MANAGEMENT Železiarne Podbrezová a.s. uses syndicated bank financing to finance its OPEX and CAPEX needs, allowing it to use a long-term non-amortised loan and short-term fixed tranches with maturity in July 2024 and a total credit line of EUR 30 million. The Company’s credit facility is supplemented by separate contractual relationships for short-term financing with three commercial banks, which were increased by EUR 15 million in 2021 to ensure required additional working capital is available. The total credit line increased to EUR 63.3 million. This financing ensures the Company’s financial stability, unifies the lending terms and reduces the complexity of loan management. Gearing ranged between 11.4% and 14.4% in 2021 and the average loan drawdown amounted to EUR 41.2 million. Bank loan interests are tied to the variable Euribor market rate. The average interest rate on drawn loans was 1.27% p. a. Credit facilities are secured by a pledge over the Company’s movable and immovable assets. The value of the assets pledged is proportionate to the Company’s credit exposure with a bank. REPORT BY THE BOARD OF DIRECTORS ON BUSINESS ACTIVITIES, ASSETS AND FINANCIAL PERFORMANCE IN 2021 AND INFORMATION ON THE BUSINESS PLAN