ANNUAL REPORT 2021

27 The financial information presented in the annual report is consistent with the financial information presented in the separate financial statements. In line with Slovak legislation, in particular Act No. 431/2002 Coll. on Accounting, Železiarne Podbrezová a.s. prepared its separate financial statements for the period from 1 January 2021 to 31 December 2021 in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU. SIGNIFICANT EVENTS THAT OCCURRED AFTER THE REPORTING DATE From 31 December 2021 up to the preparation date of the financial statements, there were no such events that would have a significant impact on the Company’s assets and liabilities, except for those already disclosed in the attached notes to the financial statements. Structure of total Expenses in 2021 54% 22% 11% 6% 3% 4% Consumed raw materials Personnel expenses Consumed energy Services Depreciation charges Other expenses Given the higher volume of production and higher prices of input raw materials and energy, total operating expenses for 2021 increased by almost EUR 105 million (46%). There were moderate changes to the structure of expenses compared to the previous year. The share of expenses incurred for raw materials and energy of total operating expenses increased from 56% to 65%. On the other hand, the share of personnel expenses of total expenses decreased from 29% to 22% and the share of services decreased from 9.4% to 6.3%. The return on total revenues for 2021 was the same as the return on total expenses: 1.7%. EXPENSES, REVENUES AND PROFIT/(LOSS) In 2021, the Company posted a profit of EUR 5 659 thousand, recognised as the difference between total revenues (EUR 334 681 thousand) and total expenses (EUR 329 022 thousand). Operating revenues contributed most (99%) to the Company’s total revenues. Sales revenues amounted to EUR 310 million, which was 37% higher than planned. Financial income of EUR 3 273 thousand amounted to 1% of total revenues and primarily consisted of dividends received from subsidiaries, interest income and foreign exchange gains. REPORT BY THE BOARD OF DIRECTORS ON BUSINESS ACTIVITIES, ASSETS AND FINANCIAL PERFORMANCE IN 2021 AND INFORMATION ON THE BUSINESS PLAN