ANNUAL REPORT 2021

33 Transmesa USA, Inc. The Spanish company, TRANSMESA, established a company in 2015 in the US to serve US customers. In autumn 2017, a processing technology for short tubes was installed in a leased warehouse and production premises to provide these services in the US. The proximity of customers and the company’s warehouse with a higher number of products increased the flexibility, security and speed of supplies and reduced the cost of transporting TRANSMESA’s products to the US. In 2019, the installation of the second grinding line was completed, which increased the company’s capacity for its customers. In 2021, the company posted sales revenues totalling EUR 5 088 thousand, a 25% y/y increase, and reported a profit of EUR 953 thousand. The company’s equity as at 31December 2021 amounted toEUR 1 772 thousand, which is approx. 45% of the asset coverage. ZANINONI SLOVAKIA, s.r.o. The company’s core business is the provision of forwarding services for the transportation of Železiarne Podbrezová’s products to global markets and services for the parent company and subsidiaries. Last year, the company provided services in a total amount of EUR 13 091 thousand and reported a profit after tax of EUR 699 thousand. The company’s equity as at 31 December 2021 amounted to EUR 2 398 thousand, which is almost 61% of the asset coverage. Tále, a.s. Tále, a.s. is a part of the business of Železiarne Podbrezová a.s., which operates in the tourism sector. It operates a sports resort comprising a ski centre, the Gray Bear 18-hole championship golf course and the Little Bear 9-hole training course, which has night lighting. The resort includes a hotel, which in addition to standard services offers congress tourism and golf vacation packages. The company regularly invests in upgrading its assets and increasing the level of provided services. Tále offers a high-quality golf course, which is popular with individuals, and a venue for commercial, sports and club tournaments. Given the high-quality snowmaking facilities and extensive slopes, the winter ski centre is popular with families with children and schools, and downhill skiing courses. As a result, the hotel and restaurants are fully booked during the peak season, i.e. Christmas and spring holidays. In 2021, the Tále sports complex was strongly impacted by the COVID-19 pandemic. The winter ski season 2020/2021 was cancelled as hotels and sports grounds had to be closed and could only open again in April, when maintenance and preparation for the summer season was already underway at Tále. It was not possible to compensate this shortfall of about 40% of annual revenues by the end of the year, despite receiving state First Aid compensation. Negative operating results were reduced by a profitable sale of the Golf Hotel to a joint venture, which has new investment plans for the hotel. The 2021 summer season was slightly stronger than in the normal pre-pandemic period, probably due to deferred organisation of corporate sports events that could not take place in 2020. In December 2020, the company established a joint venture, Tále ski & golf resorts s. r. o., with a partner from the tourism business to jointly invest in new hotel and restaurant services. The former Golf hotel will be fully renovated to improve the quality of provided services. In 2021, the company posted revenues from the sale of merchandise and services amounting to EUR 2 023 thousand, a 29% decrease compared to the previous year. The company incurred a loss after tax of EUR 153 thousand for 2021. As at 31 December 2021, the company’s assets totalled EUR 16 610 thousand, with 94% covered by equity. REPORT BY THE BOARD OF DIRECTORS ON BUSINESS ACTIVITIES, ASSETS AND FINANCIAL PERFORMANCE IN 2021 AND INFORMATION ON THE BUSINESS PLAN