ANNUAL REPORT 2021

Annual report 2021 Železiarne Podbrezová a.s. 38 In 2022, we will continue cooperation with our subsidiary, ŽP Informatika s.r.o., which operates and develops new information systems for the parent company and other companies in the ŽPGROUP as needed, by IT outsourcing. As regards the development of application software, we will continue the project of comprehensive change to the production information system to improve the planning, monitoring, and management of production and technical processes at the Company, and the follow-up process for business cases in cooperation with subsidiary trading companies. In 2022, Železiarne Podbrezová will again fund its OPEX and CAPEX needs using the club credit facility with a limit of EUR 30 million, due in July 2024. The Company is currently negotiating an extension of the club facility and its increase by a new investment line. This syndicated facility is complemented by other separate loans for short- term financing, which the Company may use according to operational needs. The total credit facility limit is sufficient for continuous funding next year and in future financial years. The Group also operates in the tourism sector via its subsidiary Tále a.s. This year marks twenty years since the opening of the first 18-hole golf course in Slovakia, which is the Company’s main investment. The company has new management and, in cooperation with other partners from the tourism sector, is working on the expansion and improvement of services and new marketing. The planned investments are intended to make Tále and the southern part of the central Low Tatras more attractive to increase client satisfaction and, ultimately, its profitability. The financial plan of Železiarne Podbrezová a.s. for 2022 was prepared at the beginning of the year and reflected all available information from the market and from suppliers. Since then there have been a number of major events, so its validity is questionable. However, as regards standard operations, the Board of Directors projects sales above EUR 300 million and a positive operating result, which will be complemented by strong financial results, in particular dividends from subsidiaries. However, this plan does not fully reflect a further increase in the cost of input raw materials. We believe that the situationwill stabilise in the second half of 2022 and the Company will maintain solid profitability. Subsidiaries in the consolidated ŽP GROUP work closely with the parent company and contribute to the Group’s overall results of operations. We plan to post a profit at almost all our companies in 2022 and we expect the next year to be as good as the last. As a result, the companies can grow and distribute regular dividends to the parent company. Consolidated revenues from the sale of merchandise, products and services for 2022 are planned in the amount of EUR 400 million, with positive consolidated results of operations. REPORT BY THE BOARD OF DIRECTORS ON BUSINESS ACTIVITIES, ASSETS AND FINANCIAL PERFORMANCE IN 2021 AND INFORMATION ON THE BUSINESS PLAN