ANNUAL REPORT 2021

77 25 Purchases of goods and services in 2020 Payables as at 31 Dec 2020 Sales of goods and services in 2020 Receivables as at 31 Dec 2020 Parent company and ultimate owners 160 155 17 370 480 13 833 3 195 Associates 1 703 577 4 455 394 1 618 922 Other related parties 2 101 - 95 035 3 322 Total 163 959 17 371 057 4 564 262 1 625 439 Transactions with the parent company and ultimate owners mainly represent received borrowings, advisory services, and lease of premises. Transactions with fellow subsidiaries and other related parties mainly represent the sale of products of the Group, and transport services. 28 COMMITMENTS AND CONTINGENCIES 28.1 Environmental matters The Company’s management believes that the Group complies with the relevant existing legislation in all material respects. It is not expected that the Group may become liable tomake significant payments relating to the environment in the future. 28.2 Capital expenditure The Group prepared a capital expenditure plan for 2022 amounting to EUR 34 415 thousand, of which EUR 11 878 thousand is contracted as at 31 December 2021. 28.3 Litigation and potential losses Atpresent,theGroup is involved ina numberof legalcasesandother disputesthatariseasaresultofordinarybusinessactivities.TheGroupincreased a long - termprovisionforlitigationagainstPIPEX ITALIAS.p.AbyEUR 300 thousand.TheGroupalsocreatedashort - termprovisionforlitigationagainst Tále,a.s. intheamountofEUR 5 thousand.TheGroupdidnotcreateaprovisionforotherGroup litigations intheaccompanyingconsolidatedfinancial statements, and based on the advice of its legal counsels, believes that the final outcome of the litigations is uncertain, and no material negative impact, individually or in aggregate, is anticipated on the Company’s consolidated financial statements. 28.4 Emission rights During 2005, the EU - wide greenhouse gas emission rights trading scheme came into effect together with the Act on Emission Rights Trading passed by the Slovak Parliament in order to implement the related EU Directive in Slovakia. Under this legislation, the Group is required to deliver emission rights to the Slovak Environmental Office to offset actual greenhouse gas emissions. The Group has opted to recognise the allocated emission rights at a nominal amount. In 2021, the Group received a pro rata share of emission rights, but the Group’s emission production in 2021 exceeded this share. The difference of EUR 1 587 thousand is recognised in profit or loss. In 2021, the Group purchased emission rights in the amount of EUR 1 781 thousand. The Group has an obligation to deliver emission rights for actual emissions. This obligation was fulfilled by the delivery of emission rights for the 2021 monitored period in April 2022. 28.5 Guarantee for loans provided to other entities The Group provides itsassetsas collateralforthe liabilities of joint debtors ŽP Informatika s.r.o. and ŽIAROMAT a.s. undera loanagreement with SLSP up to EUR 6 million. The outstanding principal as at 31 December 2021 amounts to EUR 4 996 thousand. The Company’s management believes given the financial positions of ŽP Informatika s.r.o. and ŽIAROMAT a.s. that the subsidiaries will repay the loans, therefore the Group recorded no provision in the accompanying consolidated financial statements. 29 EVENTS AFTER THE REPORTING PERIOD From 31 December 2021 up to the issue date of the financial statements, there were no such events that would have a significant impact on the Group’s assets and liabilities, except for those resulting from the ordinary course of business operations. The conflict in Ukraine may require the reassessment of assumptions and estimates used in the preparation of the financial statements. They may require significant adjustments to the carrying amount of assets and liabilities in the next financial year. The Company is highly dependent on natural gas supplies; management is currently unable to reliably estimate the development of the situation in the near future, or any potential negative impact. The long - term impact may also affect volumes of business transactions, cash flows and profitability of the Company. However, as at the preparation date of these financial statements, the Group continues to meet its liabilities and expects to continue as a going concern. 30 APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS The consolidated financial statements were prepared and approved for issue on 20 April 2022. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (IN EUROS)