Annual_report_2006

Ž E L E Z I A R N E P O D B R E Z O V Á 2 0 0 6 A N N U A L R E P O R T 33 REPORT BY THE BOARD OF DIRECTORS the experience of Železiarne Podbrezová staff of IT operation and projects within a continuous production cycle. To achieve this objective, the assets and staff were separated from Železiarne Podbrezová a.s. Services in information technologies were rendered to the parent company based on an exclusive outsourcing contract. In the previous year, GAMO a.s. reported sales amounting to SKK 503.7 million and profit of SKK 12.4 million. Despite a number of positive aspects, the aforementioned transformation failed to bring the projected synergies, and upon mutual agreement, the shareholders decid- ed to terminate this cooperation. At the beginning of 2007, Železiarne Podbrezová a.s. sold its 51% ownership interest in GAMO a.s. to the original owners. The newly-estab- lished ŽP Informatika s.r.o., a 100% subsidiary of Železiarne Podbrezová a.s. provides IT services for the parent company and its subsidiaries on a contractual basis. HRON – AIR s. r. o . HRON – AIR s.r.o. was established with the objective of providing for the air route Poprad – Sliač – Prague. The Company’s registered capital amounted to SKK 11 million. At the beginning of 2007, part of ownership interest was gradually sold to the municipalities of the city of Poprad and the city of High Tatras, Prešov self-governing region, and SCHEI- DEGGER TRAINING INSTITUTE EUROPE, s.r.o., while 34% remained the ownership of Železiarne Podbrezová a.s. This airline has been in operation since 27 March 2007. ŽP BYTOS, s . r. o . In 2006, the core activities of ŽP BYTOS, s.r.o. were the administration of a housing fund in private ownership based on contracts for administration, and the provision of sale of problematic apartments, real estate, and garages in the ownership of Železiarne Podbrezová a.s. based on a contract of mandate. The Company generated rev- enues from sales of services totalling SKK 4.3 million. The closing balance of the Company’s registered capital amounted to SKK 2.1 million, and the previous year’s profit after taxation amounted to SKK 479 thou- sand. Motor - Car Podbrezová s . r. o . Motor-Car Podbrezová s.r.o. is engaged in the sale and service of KIA passenger vehicles, in which respect the premises of a former customs office (the property of Železiarne Podbrezová a.s. based on a rental relationship) are used.