Annual Report 2005

Conclusion We highly regard the economic results achieved in 2005. Business profitability and labour productivity ratios reached the highest values in the Company’s modern history. Moreover, this success is the crowning achievement of the revitalization period, which started in 1994 and, in fact, still continues. During that period, there were no changes to the composition of the existing Board of Directors. The years-long experience of skilled staff who are open to communication and able to work under the leadership of a knowledgeable and highly competent management team, has managed to make good use of the yearlong work effort to achieve excellent results. It is clear that we were ready to promptly respond to the favourable market situation. We utilised our manufacturing equipment in the best possible way, in order to maintain operating expenses at a steady level. The result, as recognised in the individual financial statements, is net profit of SKK 883 324 thousand. Subsidiaries and associates also took an active part in the generation of economic results of Železiarne Podbrezová a.s. The consolidated group generated profit of SKK 1 289 541 thousand, with SKK 1 169 590 thousand attributable to Železiarne Podbrezová a.s., as the consolidating unit. The share of other units of account in the profit amounts to SKK 119 951 thousand. The years of the Company’s prosperity are a guarantee for the successful operation of small and mid-sized businesses in the region. Jobs and the steady income provided by Železiarne Podbrezová and its subsidiaries create an encouraging social background in the district of Brezno. Hereby, the Board of Directors of Železiarne Podbrezová a.s. wish to express their gratitude and appreciation to all our colleagues, as without their contribution the presented results could not have been achieved. Additionally, we would like to extend our thanks to our suppliers, customers, banks and financial institutions, and to all our business partners for their co-operation. We wish to further promote our good trade relations in forthcoming periods. Thank you for your confidence. Approved by the decision by the Board of Directors on 3 May 2006. REPORT BY THE BOARD OF DIRECTORS Report by the Board of Directors Annual Report 2005 Železiarne Podbrezová 35