Annual Report 2009

A N N U A L R E P O R T 2 0 0 9 36 REPORT BY THE BOARD OF DIRECTORS With regard to ensuring sales in the amount of EUR 164.2 million, the Board of Directors set a goal for 2010 to generate net profit after taxation in the amount of EUR 5.5 million. This amount will also include revenues from financial investments. The dividends to be received from the subsidiaries in 2010 are estimated at EUR 743 thousand. We are planning to generate profit in all subsidiaries. We expect to complete the liquidation of Motor-Car Podbrezová s.r.o. and sell ŽP Tažírny trub Svinov, spol. s r.o. production plant in Ostrava without a negative impact on the results of the Group. The second pillar of our business plan includes heavy-engineering and metallurgical products. ŽĎAS, a.s. has rolling mill equipment, shaping machines and tools, casts, forged pieces and models in its production plan. Along with TS Plzeň a.s., ŽĎAS, a.s. has created a tandem that ranks among the top heavy-engineering and metallurgical companies in the Czech Republic and has won worldwide recognition. Their mutual cooperation will allow the further use of the synergic effects resulting from the dominant position in the shaping machine supplies sector. Despite the lower demand for products, especially in the metallurgy sector, both companies have enough contracts for 2010 to meet their business plans and to contribute to improving the consolidated results of Železiarne Podbrezová a.s. The Company’s business activities in tourism, which is the third pillar of our business activities, is now fully integrated in the subsidiary Tále a.s. We intend to further invest in developing this segment. By enhancing the technical facilities of the sports resort and its efficient operations, we will aim to further improve rendered services and win recognition from a wide range of customers. The scope of the business activities carried out by Železiarne Podbrezová a.s. is also supported by the activities of other subsidiaries and associated undertakings, which contribute to the consolidated economic results. Upon meeting the planned revenues from sales of merchandise, finished goods and services at the consolidated group level of EUR 377.5 million, we expect to generate a consolidated profit attributable to Železiarne Podbrezová a.s. in the amount of EUR 10.5 million.