ANNUAL REPORT 2021

Annual report 2021 Železiarne Podbrezová a.s. 74 22 22 OTHER OPERATING REVENUES AND OTHER OPERATING EXPENSES Other operating revenues comprise the following: Year ended 31 Dec 2021 31 Dec 2020 Profit on the sale of property, plant, equipment and intangibles 721 072 574 165 Profit on the sale of raw materials 377 627 498 238 Proceeds from subsidies (Note 25) 5 859 281 10 073 182 Insurance benefits from insurance companies 345 574 450 388 Other operating revenues 1 468 850 2 623 341 Total other operating revenues 8 772 404 14 219 314 Other operating expenses comprise the following: Year ended 31 Dec 2021 31 Dec 2020 Additions to/(release) of provisions for receivables and inventories (30 541) 1 238 855 Change in impairment of property, plant and equipment 21 932 (6 313) Insurance premium 1 787 848 1 632 798 Other taxes and charges 981 323 1 132 271 Other operating expenses 2 579 018 222 587 Total other operating expenses 5 339 580 4 220 198 23 OTHER FINANCIAL INCOME/OTHER FINANCIAL EXPENSES Other financial income comprises the following items: Year ended 31 Dec 2021 31 Dec 2020 Foreign exchange gains 1 574 620 1 035 216 Other financial income 650 270 1 301 127 Total other financial income 2 224 890 2 336 343 Other financial income primarily comprises proceeds from the sale of a share in STABILITA, d.d.s., a.s., and a share in profit of TOM - FERR Zrt. Other financial expenses comprise the following items: Year ended 31 Dec 2021 31 Dec 2020 Foreign exchange losses 778 559 1 919 990 Losses from financial derivatives (20 861) 4 136 Other financial expenses 89 178 399 252 Total other financial expenses 846 876 2 323 378 24 INCOME TAX Year ended 31 Dec 2021 31 Dec 2020 Current tax expense for current period 1 261 895 (1 505 471) Deferred tax expense for current period 1 664 783 1 249 898 Total income tax 2 926 678 (255 573) The table below shows the reconciliation of income tax recognised and theoretical income tax calculated using the standard tax rates: Year ended 31 Dec 2021 31 Dec 2020 Profit/(loss) before tax 21 626 748 (3 790 505) Tax at local tax rate of 21% (2020: 21%) 4 541 617 (796 006) Tax effect of permanent differences, net 89 844 306 251 Effect of different tax rates of subsidiaries operating in other jurisdictions 514 682 111 794 Unrecognised deferred taxes (42 925) 120 802 Additional income tax charges, exchange rate differences on conversions (39 454) 1 586 Other (2 137 086) - Total income tax 2 926 678 (255 573) Theactualtaxrate differsfromthe tax rate of21%(2020:21%) set by lawmainly owing to differences in the classification ofcertain items of expenses and income for accounting and tax purposes, and tax rules for a group of companies that prepares consolidated financial statements in Slovakia. At present, companies in Slovakia are required to present their tax returns individually and the law does not allow for the preparation of common tax declaration for a group of companies. Deferred tax is calculated at the income tax rate that is expected to be applied in the period when the asset is to be realised or the liability settled. As a result, the Company applied the income tax rate effective in the following reporting period, i.e. 21%. In Slovakia, the 2017 to 2021 taxation periods remain open and are subject to inspection by the Tax Authority. The Group prepared documentation on related - party transactions in accordance with effective Slovak tax legislation. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (IN EUROS)