Annual report 2012

ŽELEZIARNE PODBREZOVÁ A.S. 32 information system was launched into permanent operation, which allows the detailedmonitoring of purchase, storage and realisation of raw materials at all collection points, establishments and plants of the company across Slovakia (40 branches in total). Improved internal control allows the optimisation of management and improvements in economic efficiency. KBZ s.r.o. The company is the second-largest supplier of scrap steel for Železiarne Podbrezová a.s. In 2012, the company generated revenues from the sale of merchandise and own outputs amounting to EUR 27 392 thousand, which was a 9.5% decrease compared to the previous year. Last year, KBZ s.r.o. supplied to its customers 89 948 tonnes of scrap metal, of which 81 321 tonnes of scrap steel to the parent company, representing 29.1%of the total scrap steel purchases for steel production by Železiarne Podbrezová a.s. The 2012 profit was reported in the amount of EUR35 thousand. ŽIAROMAT a.s. Žiaromat a.s. is a traditional producer of heat-resistant materials. The production programme includes mainly fire clay, heat-resistant concretes and other heat-resistant mixtures. In 2012, the company improved its sales possibilities significantly by launching its magnesite-carbon building materials production. The fire clay building materials amounted to 41.63% and heat-resistant mixtures amounted to 34.57% of total revenues in 2012. Last year, the company generated revenues from the sale of merchandise and own products and services totalling EUR 9 613 thousand, of which 51.6% was represented by export. The company has registered capital of EUR 4 813 thousand and reported a profit of EUR234 thousand in2012. Pipex (International) AG In 2012, PIPEX (International) AG was the third major trading and distribution channel in terms of the volume of sales of ŽP a.s.'s products. The company's share in the total sales of ŽP a.s.'s products represented 15.9%, up 2.5 percentage points on 2011. Last year, the company generated sales revenues totalling EUR 47 650 thousand (CHF 57 523 thousand). The company has registered capital of EUR 828 thousand (CHF 1 000 thousand) and, as at the year-end, reported a profit after tax amounting to EUR 447 thousand (CHF 540 thousand). PIPEX ITALIA S.p.A. and TS STEEL PIPE & FITTINGS S.r.l. In 2012, PIPEX ITALIA S.p.A. was the most important trading and distribution channel for the products of ŽP a.s., with a 19% share in total sales, which was an increase of 0.4 percentage points compared to the preceding period. In 2012, the company generated revenues from the sale of services totalling EUR 73 193 thousand. The company has registered capital of EUR 258 thousand and, as at the year-end, reported a profit after tax amounting toEUR868 thousand. Its subsidiary, TS STEEL PIPE& FITTINGS S.r.l., soldmerchandise from its warehouse in the Bergamo industrial area in the amount of EUR 10 341 thousand (a 15.5% increase compared to 2011) and reported a profit in the amount of EUR 288 thousand. The bodies of the parent company decided to merge both companies, and themerger will take place in 2013 pursuant to legislation valid in Italy. SLOVRURSp. z o.o. In 2012, this company was the fourth major distribution channel. The company provided for the sales of products of ŽeleziarnePodbrezová a.s. on thePolishmarket and its share in the total sales of ŽP a.s.'s products amounted to 14.4%, which is an increase by 0.9 percentage points compared to the preceding period. In 2012, the company generated revenues from the sale of ŽP a.s.'s products in the total amount of EUR 42 340 thousand (PLN 172 494 thousand). In 2012, the company increased its registered capital from retained earnings from previous years to EUR 245 thousand (PLN 1 000 thousand) and, as at the year-end, reported a profit after tax of EUR998 thousand (PLN4067 thousand). ZANINONI SLOVAKIA, s.r.o. The company's core business is the provision of forwarding services for the transportation of Železiarne Podbrezová a.s.'s products to all global markets. In 2012, the company carried out 7 714 transports, which, compared to 2011, represents an increase of 6.1%. Last year, the company provided services in the total amount of EUR 13 289 thousand. The company has registered capital of EUR 33 thousand and, as at the year-end, reported a profit after tax amounting toEUR594 thousand. ANNUAL REPORT 2 012 REPORT BY THE BOARD OF DIRECTORS ON THE BUSINESS ACTIVITIES, ASSETS, AND FINANCIAL PERFORMANCE IN 2012 AND INFORMATION ON THE BUSINESS PLAN