ANNUAL REPORT 2021

Annual report 2021 Železiarne Podbrezová a.s. 70 18 10 INVENTORIES 31 Dec 2021 31 Dec 2020 Material and spare parts 45 932 239 32 224 374 Work in progress 20 395 239 16 352 153 Finished goods 37 636 122 30 693 375 Merchandise 3 417 521 1 502 097 Provision (851 217) (1 999 069) Total inventories 106 529 904 78 772 930 As at 31 December 2021, no inventories were pledged to secure bank loans (31 December 2020: EUR 0) (see Note 14). As at 31 December 2021, due to a decrease in the net realisable value of inventories, the Group created a provision for inventories based on their ageing structure or due to a decrease in their net realisable value. The change in the balance of the provision for inventories is included in “Other operating expenses” and “Other operating income”. Insurance of inventories Insuredassets Type of insurance Name andaddressofthe insurancecompany Amount insured Inventories (work in progress, semi - finished goods, finished products) Againstall risks Allianz - Slovenská poisťovňa, a.s., Bratislava; Zurich (AON Genova); Axa, Zurich. 73 813 242 11 TRADE RECEIVABLES AND OTHER FINANCIAL ASSETS 31 Dec 2021 31 Dec 2020 Trade receivables 87 211 878 48 549 982 Receivables from related parties 3 980 107 1 622 117 Other tax receivables 6 057 834 3 959 406 Receivables from subsidies 83 672 1 962 063 Other receivables 1 034 069 10 604 431 Allowance for doubtful amounts (1 343 768) (1 216 235) Total trade and other receivables 97 023 792 65 481 764 Total trade receivables and other financial assets 97 023 792 65 481 764 Receivables from subsidies are further described in Note 25. Other receivables totalling EUR 739 thousand primarily comprise a notarial custody and a provided short - term borrowing (31 December 2020: EUR 10 446 thousand). As at 31 December 2021, trade receivables with a carrying amount of EUR 16 809 thousand (31 December 2020: EUR 8 913 thousand) were pledged to secure certain bank loans (see Note 14). The following is a breakdown of trade and other receivables: 31 Dec 2021 31 Dec 2020 Current receivables 88 039 795 60 993 694 Overdue receivables 10 327 765 5 704 305 Total 98 367 560 66 697 999 The ageing structure of overdue receivables that were not provided for: 31 Dec 2021 31 Dec 2020 Less than 90 days 8 860 556 4 682 491 90 - 180 days 129 759 243 803 180 - 360 days 1 631 7 273 More than 360 days 1 703 3 171 Total 8 993 649 4 936 738 The ageing structure of overdue receivables that were provided for: 31 Dec 2021 31 Dec 2020 Less than 90 days - - 90 - 180 days 378 867 - 180 - 360 days 60 359 18 424 More than 360 days 894 890 749 143 Total 1 334 116 767 567 12 CASH AND CASH EQUIVALENTS 31 Dec 2021 31 Dec 2020 Cash on hand 234 947 220 709 Bank balances and deposits 11 452 904 14 219 569 Cash and cash equivalents in the statement of financial position 11 687 851 14 440 278 Cash and cash equivalents in the statement of cash flows 11 687 851 14 440 278 As at 31 December 2021 and 31 December 2020, the Group had no restrictions on the handling of cash and cash equivalents. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (IN EUROS)