ANNUAL REPORT 2023

63 ŽELEZIARNE PODBREZOVÁ A.S. ANNUAL REPORT 2023 13 4 CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATE UNCERTAINTY In the process of applying the Group’s accounting policies, which are described in Note 3, the Group’s management has made the following judgements concerning uncertainties and estimates that have an effect on the amounts recognised in the financial statements. There is risk of potential adjustments in future periods relating to suchmatters, including the following: Impairment of property, plant and equipment The Group calculated and recognised a loss on the impairment of property, plant and equipment based on the assessment of their future use, planned disposals and sales. The Group does not believe that any material adjustments are needed in the future owing to impairment of the Group’s assets considering the production and sales levels (also see Note 6). Depreciation Non - current tangible assets are depreciated on a straight - line basis over the estimated useful life of individual items of the non - current tangible assets. Land and assets under construction are not depreciated. The estimated useful lives are as follows: Golf course and hotels 30 – 90 years Buildings, halls and constructions 12 – 80 years Plant and equipment and vehicles 4 – 20 years Non - current tangible assets acquired under a lease are depreciated over their expected useful lives on the same basis as owned assets. The gain or loss arising on the disposal or retirement of an item of non - current tangible assets is fully reflected in the statement of comprehensive income. Provisions for legal and court proceedings The Group is involved in various legal proceedings for which the management has assessed the probability of loss that will result in a cash outflow for the Group. In making this assessment, the Group has relied on the advice of external legal counsel, the latest available information on the status of the court proceedings and on an internal evaluation of the likely outcome. The final amount of any potential losses in relation to legal proceedings is not known and based ontheGroupmanagement judgementwill not result inamaterial adjustment toprevious estimates. Details of the legal cases are included inNote 17. Provision for employee benefits The Group uses a model to calculate employee benefits (see Note 3(p) above), which reflects the expected employee turnover, wage growth, discount factor and all of the benefits the Group plans to pay to the employees. 5 SUBSIDIARIES AND ASSOCIATES AND CHANGES IN THE GROUP The list of consolidated subsidiaries in the Group is as follows: Name Country of incorporation Ownership interest (%) Voting rights (%) Business activities 2023 2022 2023 2022 PIPEX ITALIA S.p.A., Arona (Novara) Italy 85.00% 85.00% 85.00% 85.00% Trading activities Pipex Deutschland GmbH, Munich Germany 80.00% 88.50% 80.00% 88.50% Trading activities SLOVRUR Sp. z o.o., Stalowa Wola Poland 90.00% 90.00% 90.00% 90.00% Trading activities ŽP Trade Bohemia, a.s. Praha Czech Republic 100.00% 100.00% 100.00% 100.00% Trading activities Tále, a.s., Tále Slovakia 93.31% 92.87% 93.31% 92.87% Tourism ŽP - Gastroservis, s.r.o., Valaská Slovakia 100.00% 100.00% 100.00% 100.00% Catering services Nadácia Železiarne Podbrezová, Podbrezová Slovakia 100.00% 100.00% 100.00% 100.00% Foundation ŽIAROMAT a.s., Kalinovo Slovakia 100.00% 100.00% 100.00% 100.00% Production of refractory products ŽP Informatika s.r.o., Podbrezová Slovakia 100.00% 100.00% 100.00% 100.00% IT services ŽP EKOQELET a.s., Martin Slovakia 66.27% 66.27% 66.27% 66.27% Purchase and sale of scrap Transformaciones Metalurgicas S.A.U., Arenys deMar Spain 100.00% 100.00% 100.00% 100.00% Production of steel pipes TAP Tubos de Acero de Precisión, S.L.U., Arenys deMar Spain 100.00% 100.00% 100.00% 100.00% Production of steel pipes Transmesa USA, Inc., Englewood Cliffs, NJ USA 100.00% 100.00% 100.00% 100.00% Production and trading activities ŽP VVC s.r.o., Podbrezová Slovakia 100.00% 100.00% 100.00% 100.00% Research and development KBZ s.r.o., Košice Slovakia 70.00% 70.00% 70.00% 70.00% Purchase and sale of scrap ŽP Bezpečnostné služby s.r.o., Podbrezová Slovakia 100.00% 100.00% 100.00% 100.00% Operation of security guards ŽP Rehabilitácia s.r.o., Podbrezová Slovakia 100.00% 100.00% 100.00% 100.00% Operation of a health - care facility ZANINONI SLOVAKIA, s.r.o., Valaská Slovakia 100.00% 100.00% 100.00% 100.00% Transportation services ŠK Železiarne Podbrezová a.s., Podbrezová Slovakia 99.50% 99.50% 99.50% 99.50% Sport, advertising and promotion FK Železiarne Podbrezová, a.s., Podbrezová Slovakia 55.00% 55.00% 55.00% 55.00% Sport, advertising and promotion UHL, s.r.o., Podbrezová Slovakia 100.00% 100.00% 100.00% 100.00% Trading activities As at 27 July 2023, Tále, a.s., issued 31 new shares which were subscribed and acquired by Železiarne Podbrezová a.s., increasing the Group’s share to 93.31%. Notes to the Consolidated Financial Statements For the year ended 31 December 2023 (in euros)