ANNUAL REPORT 2021

59 7 Notes to the Consolidated Financial Statements For the year ended 31 December 2021 (in euros) 1 GENERAL INFORMATION 1.1 Description of the Company Železiarne Podbrezováa.s.(hereinafteralsothe“Company”or“ŽP”) isa jointstockcompanythatwas incorporated on21 April1992and established on 1 May 1992. The Company’s registered seat is at Kolkáreň 35, 976 81 Podbrezová, Slovakia (Company ID: 31 562 141, Tax ID: 2020458704). The Company produces steel pipes for industrial purposes, which are mainly sold to customers in Europe. The Company’s consolidated financial statementsfortheyear ended31December2021comprisetheCompanyand itssubsidiaries (together referredtoasthe“Group”),andtheGroup’s share in a joint venture. The Group is active in the production and sale of steel pipes and tourism (see Note 3c). 1.2 Structure of shareholders and their shares in registered capital As at 31 December 2021, the Company’s shares were held by CPA s.r.o. (79.45%) (31 December 2020: 79.44%) and other minority shareholders (20.55%) (31 December 2020: 20.56%). The shareholders’ voting rights equal their ownership interest in the share capital. The Company’s shares are certified registered shares and have been publicly non - tradable since 2007. 1.3 Members of Company’s bodies Supervisory Board Board of Directors Ing. Ján Banas - Chairman Ing. Vladimír Soták - Chairman Ing. Jozef Marčok - Deputy Chairman Ing. Marian Kurčík - Deputy Chairman Luigi Cuzzolin - Member Ing. Miloš Dekrét - Member Ing. Ľudovít Ihring - Member Ing. Mária Niklová - Member Ing. Tomáš Ihring - Member Ing. Vladimír Soták, Jr. - Member Ing. Jaroslav Romančík - Member Ing. Milan Srnka, PhD - Member until 21 June 2021 Ing. Vladimír Zvarík - Member Ing. Július Kriváň - Member Ing. Ivan Setvák - Member Ing. Miroslav Vrabec - Member from 20 Nov 2020 until 15 Jan 2021 Ján Cipciar - Member since 15 Jan 2021 1.4 Unlimited guarantee The Company is not a partner to any unlimited liability company. 1.5 Legal basis for preparing the financial statements These financial statements are the annual consolidated financial statements of Železiarne Podbrezová a.s. and its subsidiaries as prepared under Act No. 431/2002 Coll. on Accounting, as amended. The consolidated financial statements were prepared for the reporting period from 1 January 2021 to 31 December 2021 in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union (“EU”). The financial statements are intended for general use. 1.6 Approval of the 2019 Consolidated Financial Statements On 21 June 2021, the Annual General Meeting approved the consolidated financial statements of Železiarne Podbrezová a.s. for the year ended 31 December 2020. 1.7 Consolidated financial statements of the parent company The Company’s consolidated financial statements are included in the consolidated financial statements of the parent company, CPA s.r.o. The consolidated financial statements of CPA s.r.o. are available at the Company’s registered seat (Kolkáreň 35, Nový závod, 976 81 Podbrezová) and at the Registry Court in Banská Bystrica (Skuteckého 28, 975 59). 1.8 Comparatives As comparativesfor the previous reporting period relating to assets, liabilities,and equity items,the financial statements present data reflecting balances as of 31December 2020. For expenses and revenues, comparativesfor the previous reporting period, i.e. year ended 31 December 2020, were used. 2 ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS In the current year, the Group adopted all new and revised standards and interpretations issued by the International Accounting Standards Board (“IASB”) and the International Financial Reporting Interpretations Committee (“IFRIC”) of IASB as endorsed by the European Union that are relevant to its operations and are effective for the reporting periods beginning on 1 January 2021. Initial application of new amendments to the existing standards effective for the current reporting period T he following amendments to the existing standards issued by the International Accounting Standards Board (IASB) and adopted by the EU are effective for the current reporting period: - Amendments to IFRS 9 “Financial Instruments”, IAS 39 “Financial Instruments: Recognition and Measurement”, IFRS 7 “Financial Instruments: Disclosures”, IFRS 4 “Insurance Contracts” and IFRS 16 “Leases” - Interest Rate Benchmark Reform - Phase 2 adopted by the EU on 13 January 2021 (effective for annual periods beginning on or after 1 January 2021), - Amendments to IFRS 16 “Leases” - Covid - 19 - Related Rent Concessions beyond 30 June 2021 adopted by the EU on 30 August 2021 (effective from 1 April 2021 for annual periods starting,atthe latest, on or after1 January 2021), - Amendmentsto IFRS 4“Insurance Contracts” - Extension of the Temporary Exemption from Applying IFRS 9adopted by the EU on 16December 2020 (the expiry date for the temporary exemption from IFRS 9 was extended from 1 January 2021to annual periods beginning on or after 1 January2023). The adoption of the amendments to the existing standards has not led to any material changes in the Group’s financial statements. 2.1 Standards and amendments to the existing standards issued by the IASB and adopted by the EU but not yet effective At the date of authorisation of these financial statements, the following amendments to the existing standards were issued by the IASB and adopted by the EU and are not yet effective: NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (IN EUROS)