Annual Report 2005

ŽP - Invest s.r.o. During 2005, ŽP - Invest s.r.o. (“ŽP – Invest”) completed the construction of a multi-purpose building “Zlatý jeleò” (Golden Deer) in an attractive location in Bratislava. The lesser part of the premises within the building was sold to become a private property, and the rest is leased out. During 2005, Železiarne Podbrezová, a.s. purchased the ownership interest in ŽP – Invest held by a minority partner, and became 100% owner of ŽP – Invest. In 2005, sales from leases and sold premises in the multi-purpose building generated by ŽP – Invest totalled SKK 244 million. With registered capital of SKK 65 million, the company generated profit after taxation amounting to SKK 8 million. At the end of the year the multi-purpose building was sold in full, and ŽP – Invest assets totalling to SKK 67.6 million are intended for the financing of another construction project in 2006. ŽP - Gastroservis, s.r.o. ŽP - Gastroservis, s.r.o. (“ŽP – Gastroservis”) provides comprehensive services in catering for employees of the parent company and for external customers. In 2005, 51% of the total quantity of prepared meals were supplied to external customers. In 2005, ŽP - Gastroservis made sales of SKK 71 million from own products and services. During 2005, the company’s registered capital increased; the increase was associated with the renovation of the building. The closing balance of the registered capital was SKK 28 million In 2005, ŽP – Gastroservis generated profit after taxation amounting to SKK 280 thousand. ŽP Šport, a.s. ŽP Šport, a.s. (“ŽP – Šport”) is engaged in sports, advertising and promotion activities. Besides the development of professional sports activities, ŽP - Šport also aims to support non-professional mass sports activities of Železiarne Podbrezová employees. In order to achieve this objective, they create favourable conditions for a broad range of winter and summer sports. In 2005, sales generated by ŽP - Šport from sold goods and advertising totalled SKK 60.8 million. With registered capital of SKK 15.4 million, after a number of less successful years in 2005, ŽP - Šport generated profit after taxation amounting to SKK 4 million. ŽP BYTOS, s.r.o. In 2005, the core activities of ŽP BYTOS, s.r.o. (“ŽP BYTOS”) were the administration of sale of apartments, land and garages owned by Železiarne Podbrezová a.s. This was based on a contract of mandate and management of housing fund based on contracts on administration. ŽP BYTOS generated sales from own products and services totalling SKK 4 million. In 2005, with registered capital of SKK 2.1 million, the company generated profit after taxation amounting to SKK 316 thousand. REPORT BY THE BOARD OF DIRECTORS Report by the Board of Directors Annual Report 2005 Železiarne Podbrezová 31