ANNUAL REPORT 2021

39 CONCLUSION In 2021, Železiarne Podbrezová was able to fully utilise its production capacities to satisfy needs of its customers and deliver the maximum volume of products to the market. We undertook most of the planned investments under the investment plan and posted an operating and financial profit. Despite significant current risks in the global economy, the ongoing war and constant pressure todecarboniseproduction, webelieve that the steel tube industry will retain its place in the economy over the long term. The primary reason for our optimism is the growth of the world population, and the associated increase in urbanisation and the long-term demand for personal mobility. The Company’s Board of Directors considers 2021 as positive, although it was a difficult year in terms of operations, due to frequent changes and an unstable situation. However, with regard to production and economic results, Železiarne Podbrezová a.s. took almost every opportunity that the market offered in this specific period. All employees, including the management and employees of subsidiaries, contributed to the Company’s success. The 2021 profit amounted to EUR 5.7 million, with earnings per share of EUR 2.40. The Board of Directors proposes to the General Meeting that a dividend of EUR 2 per share be paid. Sales revenues in the consolidation group amounted to EUR 428.6 million and the consolidated net profit amounted to EUR 18.7 million, of which EUR 16.6 million is attributable to the shareholders of Železiarne Podbrezová. There was a 50% increase in consolidated revenues compared to 2020 and the result of operations of the ŽP GROUP significantly improved by EUR 22.2 million. 2022 is the 182nd year of operations at Železiarne Podbrezová a.s. As we have seen on a number of occasions, the history of the Company develops in cycles with strong and more difficult periods regularly alternating. This is also confirmed by developments in recent years, when a successful period was followed by sudden stagnation, and then replaced by strong growth. However, economic cycles are becoming less predictable and the impact of government restrictions and green policy is growing. Nevertheless, during critical periods Company management has always managed to maintain production, key employees and sales thanks to its business network and loyal long-term customers. We believe that ultimately, this crisis will also help our Company to streamline production processes and will contribute to the correct targeting of our investments. As a result, due to its production of high-quality products, affordable prices and the provision of excellent service for its customers, we believe the Company will retain its position on the market. Železiarne Podbrezová seeks to be a stable partner for many small and medium-sized entrepreneurs in the region and our long-term suppliers. As the largest employer in the region, the Company guarantees social security in the Brezno district and across the Banská Bystrica region. The Board of Directors of Železiarne Podbrezová a.s. would like to thank all our employees and colleagues, as without their contribution, these results could not have been achieved. We would also like to extend our thanks to our suppliers, customers, financial institutions and all our business partners for their cooperation, and we hope our good business relations will continue to develop successfully. We thank you for your trust. Approved by a decision of the Board of Directors on 26 May 2022 REPORT BY THE BOARD OF DIRECTORS ON BUSINESS ACTIVITIES, ASSETS AND FINANCIAL PERFORMANCE IN 2021 AND INFORMATION ON THE BUSINESS PLAN