ANNUAL REPORT 2021

Annual report 2021 Železiarne Podbrezová a.s. 68 16 The Group revised the estimated remaining useful lives of non - current tangible assets and for the purpose of depreciation, it broke down material items of assets into material parts as required by IAS 16 - Property, Plant and Equipment. Depreciation charges of non - current tangible assets were increased by EUR 199 thousand in 2021 due to revisions of useful life. Assets under lien At31 December2021, the immovableandmovableassets of ŽP with acarrying amount ofEUR 35 567 thousand(fairvalue ofapprox. EUR 65 million) and immovable and movable assets of other consolidated companies with a carrying amount of EUR 23 182 thousand are subject to a registered debenture to secure certain bank loans (see Note 14). The net book value of non - current tangible assets with restricted handling by the Group (easement) was EUR 2 349 thousand. Insurance of assets Insured assets Type of insurance Name and address of the insurance company Amount insured Set of immovable assets Against all risks Allianz - Slovenská poisťovňa, a.s., Bratislava; AXA Seguros Generales, Zurich; Allianz pojišťovna, a.s., Prague; UNIQA (AON Genova); Sopockie Towarzystwo Ubezpieczeń Ergo Hestia, Sopot; STU Ergo Hestia; Aon Risk services Northeats - Century Surety Company. 362 234 505 Set of movable assets Against all risks Allianz - Slovenská poisťovňa, a.s., Bratislava; AXA Seguros Generales, Zurich; Allianz pojišťovna, a.s., Prague; UNIQA (AON Genova); Sopockie Towarzystwo Ubezpieczeń Ergo Hestia, Sopot; STU Ergo Hestia. 371 934 398 Acquisition of new non - current tangible assets Against all risks Allianz - Slovenská poisťovňa, a.s., Bratislava 2 185 820 7 INTANGIBLE ASSETS AND GOODWILL Software Goodwill Assets under construction Total Cost At 1 Jan 2021 6 605 617 1 768 335 234 175 8 608 127 Additions - - 317 607 317 607 Additions from the acquisition of a share in a subsidiary - 106 846 - 106 846 Disposals (7 795) (106 846) - (114 641) Transfers 388 354 - (388 354) - Foreign exchange differences 1 163 - - 1 163 At 31 Dec 2021 6 987 339 1 768 335 163 428 8 919 102 Accumulated amortisation At 1 Jan 2021 5 314 433 - 6 606 5 321 039 Amortisation 302 652 - - 302 650 Additions from the acquisition of a share in a subsidiary - 106 846 - 106 846 Disposals (7 795) (106 846) - (114 641) Transfers - - - - Foreign exchange differences 1 275 - - 1 275 At 31 Dec 2021 5 610 565 - 6 606 5 617 171 Carrying amount At 1 Jan 2021 1 291 184 1 768 335 227 569 3 287 088 At 31 Dec 2021 1 376 774 1 768 335 156 822 3 301 931 Software Goodwill Assets under construction Total Cost At 1 Jan 2020 6 380 630 1 768 335 289 723 8 438 688 Additions - - 311 513 311 513 Disposals (138 158) - - (138 158) Transfers 367 061 - (367 061) Foreign exchange differences (3 916) - - (3 916) At 31 Dec 2020 6 605 617 1 768 335 234 175 8 608 127 Accumulated amortisation At 1 Jan 2020 5 172 769 - 6 606 5 179 375 Amortisation 282 207 - - 282 207 Disposals (138 158) - - (138 158) Transfers - - - - Foreign exchange differences (2 385) - - (2 385) At 31 Dec 2020 5 314 433 - 6 606 5 321 039 Carrying amount At 1 Jan 2020 1 207 861 1 768 335 283 117 3 259 313 At 31 Dec 2020 1 291 184 1 768 335 227 569 3 287 088 The subsidiary, PIPEX ITALIA S.p.A., is allocated goodwill amounting to EUR 1 183 thousand as at 31 December 2021 (31 December 2020: EUR 1 183 thousand). As at 31 December 2021, no impairment of goodwill was identified by testing the goodwill for impairment. Goodwillamounting toEUR585thousandarose ontheacquisition ofa31.74%ownership interest inŽPEKOQELETa.s. in2005, whichwasrecognised in the statement of financial position. No goodwill arose upon the acquisition of a 34.51% share in ŽP EKO QELET a.s. in 2007, as the transaction was between entities under common control, and the Company accounted for such transaction using the Pooling of Interests method. Upon the acquisition of the additional 0.02% ownership interest owing to an increase in the Company’s share capital in June 2008, negative goodwill arose, which was fully written off in the statement of comprehensive income for the year ended 31 December 2008. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (IN EUROS)