ANNUAL REPORT 2021

Annual report 2021 Železiarne Podbrezová a.s. 32 ŽIAROMAT a.s. ŽIAROMAT a.s. is an established producer of heat- resistant materials. The core of the production programme is heat-resistant concretes, fire clay, magnesite-carbon building materials and other heat-resistant mixtures. After the difficult previous year, there was an increase in revenues in 2021 to a level similar to the year before the pandemic. The growth in revenues was related to the growth in demand for metallurgical products, which are the bulk of the company’s production and generate 89% of revenues. The company is also succeeding in Eastern European markets, which offsets the long- term decline as regards traditional customers. Heat-resistant mixtures and panels amounted to 32% of revenues, magnesite-carbon building materials to 21% of revenues, fire clay building materials to 20% of revenues, and other materials to 27% of revenues in 2021. Last year, the company posted revenues from the sale of merchandise and own products and services totalling EUR 11 112 thousand, a 19% y/y increase. Exports accounted for almost 60% of total sales. The company’s equity as at 31 December 2021 amounted to EUR 2 893 thousand, which is approx. 29% of the asset coverage. In 2021, the company posted a profit after tax of EUR 63 thousand. PIPEX ITALIA S.p.A. PIPEX ITALIA S.p.A. has traditionally been the most important sales and distribution channel for the products of Železiarne Podbrezová a.s., and contributed almost 24% of total sales in 2021. In 2021, the company’s revenues from the sale of merchandise and services increased by 35% to EUR 103 870 thousand y/y. The company’s equity as at 31 December 2021 amounted to EUR 11 839 thousand, which is approx. 23% of the asset coverage. In 2021, the company posted a profit after tax of EUR 2 830 thousand, a 460% y/y increase. . ŽP Trade Bohemia, a.s. ŽP Trade Bohemia, a.s. sells the parent company’s products on the Czechmarket, and was the second most important sales and distribution channel for the products of Železiarne Podbrezová a.s. in 2021, with a 13% share of total sales. The company’s equity as at 31 December 2021 amounted to EUR 2 841 thousand, which is approx. 26% of the asset coverage. The company reported total revenues of EUR 40 908 thousand and a profit of EUR 606 thousand in 2021, a 330% increase in profitability. SLOVRUR Sp. z o. o. In 2021, SLOVRUR Sp. z o. o. was the third most important distribution channel for the parent company. This company sells the products of Železiarne Podbrezová a.s. on the Polish market and had a 12% share of total sales last year. In 2021, company sales were in the amount of EUR 40 909 thousand, an increase of 59% compared with the previous year. As at 31 December 2021, equity amounted to EUR 4 689 thousand, representing approximately 38% of asset coverage. The 2021 profit after tax of the company was EUR 1 513 thousand, which is a significant profitability increase by more than 400%. Pipex Deutschland GmbH Since 2013, Pipex Deutschland GmbH has been taking over the customers of PIPEX (International) AG, PIPEX ITALIA S.p.A. and the German agent, RS GmbH, with the objective of increasing market share in Germany. In 2021, the company reported revenues from the sale of products of Železiarne Podbrezová a.s. totalling EUR 23 925 thousand and a profit of EUR 306 thousand. The company’s equity as at 31 December 2021 amounted to EUR 984 thousand, which is approx. 22% of the asset coverage. REPORT BY THE BOARD OF DIRECTORS ON BUSINESS ACTIVITIES, ASSETS AND FINANCIAL PERFORMANCE IN 2021 AND INFORMATION ON THE BUSINESS PLAN