Annual Report 2009

Ž E L E Z I A R N E P O D B R E Z O V Á REPORT BY THE BOARD OF DIRECTORS PIPEX ITALIA S.p.A. and TS STEEL PIPE & FITTINGS S.r.l. In 2009 PIPEX ITALIA S.p.A. was the major trading and distribution channel for the products of Železiarne Podbrezová a.s., with the share exceeding 20% of total sales. In 2009 the company’s sales from merchandise and services totalled EUR 38 933 thousand, which is a 31% drop compared to 2008. In 2009, the company reported a net profit of EUR 81 thousand. Its subsidiary TS STEEL PIPE & FITTINGS S.r.l. sold goods ex stock in the Bergamo industrial area in the total amount of EUR 7 259 thousand (a drop of 37%) and reported a profit in the amount of EUR 6 thousand PIPEX International AG In 2009 PIPEX International AG was the second major business and distribution channel, with a 19% financial share in total sales. In prior year, the company generated sales totalling EUR 28 446 thousand (CHF 42.2 million) from merchandise solely from Železiarne Podbrezová a.s.’s production; in the financial year 2009 the company generated a profit of EUR 20 thousand (CHF 29 thousand). SLOVRUR Sp. z o.o. In 2009, SLOVRUR, Sp. z o.o. was the third major business channel, selling the products of Železiarne Podbrezová a.s. on the Polish market, and its share of the total sales of products of the parent company was 13.5%. In 2009 the company’s sales amounted to EUR 21 157 thousand (PLN 86.8 million), which is 31% less than sales in 2008. The company's operations resulted in a profit amounting to EUR 341 thousand (PLN 1.4 million). ZANINONI SLOVAKIA s.r.o. The core business of ZANINONI SLOVAKIA s.r.o. is the provision of forwarding services for the transportation of Železiarne Podbrezová a.s.’s products to all markets. In 2009, owing to the economic recession, the company only arranged for 5 641 transports, which is a drop of 30% compared to the prior period. Last year, the company provided services in the total amount of EUR 7 872 thousand and reported profit after taxation in the amount of EUR 142 thousand. ŽP - Gastroservis s.r.o. ŽP - Gastroservis, s.r.o. produces fresh, refrigerated and frozen meals. It also provides comprehensive services in catering for the parent company’s employees and for external customers. In the long term, the proportion of meals delivered to external customers is approximately one-half of the total number of prepared meals. Owing to reduced operations in the parent company in 2009, the company’s own production dropped by 33.2% compared to 2008. In 2009 the company’s sales totalled EUR 2 334 thousand and it reported profit after taxation in the amount of EUR 5 thousand. 33