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 37 REPORT BY THE BOARD OF DIRECTORS We highly regard the results of operations achieved in 2006. Business profitability and labour productivity ratios reached a high level, comparable with 2005, although in more challenging conditions. In the previous year, the global boom of the metallurgical industry continued. We were able to fully take advantage of this favourable situation in terms demand. Technological equipment was used in an optimummanner, thereby maintaining a steady level of operat- ing expenses despite the increased prices of input materials and energies. The long-term experience of the personnel that was willing and able to communicate under the leader- ship of mature management made good use of the year-long work drive. The result, as recognized in the separate financial statements, was net profit of SKK 846 050 thousand. Based on the require- ment imposed by Slovak Act No. 431/2002 Coll. on Accounting, the Company changed the policy of separate financial statements’ preparation as of 1 January 2006 to the International Financial Reporting Standards as adopted by the European Union. The impact of these new standards and interpre- tations on the Company’s financial state- ments was immaterial. The subsidiary and associate undertakings also took an active part in the generation of results of operations of Železiarne Podbrezová a.s. The consolidated group generated profit of SKK 1 333 436 thousand, thereof SKK 1 254 301 thousand attributable to shareholders of Železiarne Podbrezová a.s. as the consolidating unit. The share of minority interest of the profit amounted to SKK 79 135 thousand. The Company's prosperity in the long term represented a guarantee for the successful operation of small- and medium-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 grati- tude and appreciation to all our colleagues, as without their contribution the presented results could not have been achieved. CONCLUSION 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 of the Board of Directors on 17 May 2007. In nature we never see anything isolated, but everything in connection with something else which is before it, beside it, under it and over it. Goethe