ANNUAL REPORT 2021

Annual report 2021 Železiarne Podbrezová a.s. 60 8 - Amendments to IAS 16 “Property, Plant and Equipment” - Proceeds before Intended Use adopted bythe EU on 28 June 2021(effective forannual periods beginning on or after 1 January 2022), - Amendments to IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” - Onerous Contracts - Cost of Fulfilling a Contract adopted by the EU on 28 June 2021 (effective for annual periods beginning on or after 1 January 2022), - Amendments to IFRS 3 “Business Combinations” - Reference to the Conceptual Framework with amendments to IFRS 3 adopted by the EU on 28 June 2021 (effective for annual periods beginning on or after 1 January 2022), - IFRS 17 “Insurance Contracts” including amendments to IFRS 17 adopted by the EU on 19 November 2021 (effective for annual periods beginning on or after 1 January 2023), - Amendments tovarious standards due to “Annual Improvements to IFRS Standards (2018 -2020Cycle)” resulting fromtheannual improvement project of IFRS (IFRS 1, IFRS 9, IFRS 16 and IAS 41) primarily with a view to removing inconsistencies and clarifying wording - adopted by the EU on 28 June 2021(Theamendmentsto IFRS1, IFRS9and IAS41are effective for annual periods beginning on orafter1 January2022.Theamendments to IFRS 16 only relate to an illustrative example, so no effective date is stated.). 2.2 New standards and amendments to the existing standards issued by the IASB but not yet adopted by the EU At present, IFRS as adopted by the EU do not significantly differ from regulations adopted by the IASB, except for the following new standards and amendments to the existing standards, which were not endorsed for use in the EU as at the date of publication of the financial statements (the effective dates stated below are for IFRS as issued by the IASB): - IFRS 14 “Regulatory DeferralAccounts” (effectiveforannualperiods beginning on orafter1 January2016) - theEuropeanCommission has decided not to launch the endorsement process of this interim standard and to wait for the final standard, - Amendments to IAS 1 “Presentation of Financial Statements” - Classification of Liabilities as Current or Non - current (effective for annual periods beginning on or after 1 January 2023), - Amendmentsto IAS 1“Presentationof FinancialStatements” - Disclosure ofAccounting Policies (effectiveforannual periodsbeginning on orafter 1 January 2023), - Amendmentsto IAS 8“Accounting Policies,Changes inAccounting EstimatesandErrors” - Definition ofAccounting Estimates (effectiveforannual periods beginning on or after 1 January 2023), - Amendmentsto IAS 12“IncomeTaxes” - DeferredTaxrelatedto Assetsand Liabilitiesarising fromaSingleTransaction(effectiveforannualperiods beginning on or after 1 January 2023), - Amendments to IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures” - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture and other amendments (effective date deferred indefinitely until the research project on the equity method has been concluded), - Amendments to IFRS 17 “Insurance Contracts” - Initial Application of IFRS 17 and IFRS 9 - Comparative Information (effective for annual periods beginning on or after 1 January 2023). The Group anticipates that the adoption of these new standards and amendments to the existing standards will have no material impact on the Group’s financial statements in the period of initial application. Hedge accounting for a portfolio of financial assets and liabilities whose principles have not been adopted by the EU remains unregulated. According to the Group’s estimates, the application of hedge accounting to a portfolio of financial assets or liabilities under IAS 39: “Financial Instruments: Recognition and Measurement” would not significantly impact the financial statements if applied as at the reporting date. - IFRS 14 “Regulatory Deferral Accounts” issued by the IASB on 30 January 2014. Thisstandard is intended to allow entities thatare first - time adopters of IFRS,and that currently recognise regulatory deferral accounts in accordance with their previous GAAP, to continue to do so upon transition to IFRS. - IFRS 17 “Insurance Contracts” issued by the IASB on 18 May 2017. The new standard requires insurance liabilities to be measured at a current fulfilment value and provides a more uniform measurement and presentation approach for all insurance contracts. These requirements are designed to achieve the goal of consistent, principle - based accounting for insurance contracts. IFRS 17 supersedes IFRS 4 “Insurance Contracts” and related interpretations while it is applied. Amendments to IFRS 17 “Insurance Contracts” issued by the IASB on 25 June 2020 defer the date of initial application of IFRS 17 by two years to annual periods beginning on or after 1 January 2023. Additionally, the amendments introduce simplifications and clarifications of some requirements in the standard and provide additional reliefs when applying IFRS 17 for the first time. - Amendments to IFRS 3 “Business Combinations” - Reference to the Conceptual Framework with amendments to IFRS 3 issued by the IASB on 14 May 2020. The amendments: (a) update IFRS 3 so that it refers to the 2018 Conceptual Framework instead of the 1989 Framework; (b) add to IFRS 3 a requirement that, for transactions and other events within the scope of IAS 37 or IFRIC 21, an acquirer applies IAS 37 or IFRIC 21 (instead of the Conceptual Framework) to identify the liabilities it has assumed in a business combination; and (c) add to IFRS 3 an explicit statement that an acquirer does not recognise contingent assets acquired in a business combination. - Amendments to IFRS 4 “Insurance Contracts” - Extension of the Temporary Exemption from Applying IFRS 9 issued by the IASB on 25 June 2020. The amendments change the fixed expiry date for the temporary exemption from applying IFRS 9 “Financial Instruments” stated in IFRS 4 “Insurance Contracts” so that entities will be required to apply IFRS 9 for annual periods beginning on or after 1 January 2023. - Amendments to IFRS 9 “Financial Instruments”, IAS 39 “Financial Instruments: Recognition and Measurement”, IFRS 7 “Financial Instruments: Disclosures”, IFRS 4 “InsuranceContracts”and IFRS 16 “Leases” - Interest Rate Benchmark Reform - Phase2 issued bythe IASBon 27August2020. The changes relate to the modification of financial assets, financial liabilities and lease liabilities, specific hedge accounting requirements, and disclosure requirements applying IFRS 7 to accompany the amendments regarding modifications and hedge accounting: a) Modification of financial assets, financial liabilities and lease liabilities - the IASB has introduced a practical expedient for modifications required by the reform (modifications required as a direct consequence of the IBOR reform and made on an economically equivalent basis). These modifications are accounted for by updating the effective interest rate. All other modifications are accounted for using current IFRS requirements. A similar practical expedient is proposed for lessee accounting applying IFRS 16. b) Hedge accounting requirements - under the amendments, hedge accounting is not discontinued solely due to the IBOR reform. Hedging relationships (and related documentation) must beamended toreflect modificationstothe hedged item, hedging instrumentand hedged risk. Amended hedging relationships shouldmeet all qualifying criteria to apply hedge accounting, including effectiveness requirements. c) Disclosures - in order to allow users to understand the nature and extent of risks arising from the IBOR reform to which the entity is exposed to and how the entity manages these risks as well as the entity’s progress in transitioning from IBORs to alternative benchmark rates, and how the entity is managing this transition, the amendments require that an entity disclose information about: - How the transition from interest rate benchmarks to alternative benchmark rates is managed, the progress made at the reporting date, and the risks arising from the transition; - Quantitative information on non - derivative financial assets, non - derivative financial liabilities and derivatives that continue to reference interest rate benchmarks subject to the reform, disaggregated by significant interest rate benchmark; NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (IN EUROS)