Annual Report 2003

REPORT BY THE BOARD OF DIRECTORS ANNUAL REPORT Ž E L E Z I A R N E P O D B R E Z O V Á 2 0 0 3 28 (1) Book value per balance sheet gross, (in foreign currency deposits re-calculated by National Bank of Slovakia rate as of 31.12.2003). (2) Company was terminated in 2004. (3) Share in the company was sold in 2004. Financial investments in daughter companies, subsidiaries and in the related companies resulted in the following figures: Acquisition of shares in SLAVIA CAPITAL Group, a. s. + 165 000 thous. SKK Increase of share capital of Tále, a. s. + 60 000 thous. SKK Increase of equity of ŽP-Invest s. r. o. + 19 120 thous. SKK Foundation of company ŽP-ENERGO s. r. o. + 200 thous. SKK Sales of a stake in Tále, a. s. – 165 000 thous. SKK Sales of the stake in ŽP ŽELJEZARA, d. o. o. – 136 thous. SKK Winding up of MAN OCEAN Ltd. – 42 thous. SKK Legal name and form Registered office Investm ent (1) Interest in share capital Participation Initial deposits Nadácia Železiarne Podbrezová Podbrezová, Slovakia 200 100,00 % - yes SIDERIA-ISTOTA, zzp Košice, Slovakia 5 693 - - no DDP Stabilita Košice, Slovakia 5 438 - - no The portfolio of financial investments corresponds with the intention to diversify business activities of Železiarne Podbrezová, a strategy that is based on three pillars. Apart from the metallurgy and steel production of the mother company, the second pillar became production of heavy machine engineering and metallurgy by the daughter company ŽĎAS, a. s., in the Czech Republic. After Železiarne Podbrezová acquired shares in ŽĎAS in 2002, within a short period Železiarne Podbrezová succeeded in revitalizing and restructuring the company to the extent that ŽĎAS produced a profit in 2003 comparable to that of the mother company. The third pillar focuses on a tourism business developed in the area of the Low Tatras by the company Tále, a. s. Consolidated