Annual report 2015

Železiarne Podbrezová a.s. Annual report 2015 KBZ s.r.o. The company is the second-largest supplier of scrap steel to Železiarne Podbrezová a.s. In 2015, the company gener - ated revenues from the sale of merchandise and own out - puts amounting to EUR 17 977 thousand, a 21.3% decrease compared to the previous year. Last year, KBZ s.r.o. supplied 78 546 tonnes of scrap metal to its customers, of which 68 126 tonnes was supplied to the parent company, represent - ing 25.4% of the total scrap steel purchases for steel pro - duction by Železiarne Podbrezová a.s. The company’s reg - istered capital amounts to EUR 1 328 thousand. A decrease in outputs compared with preceding periods, the resulting lower margin and falling prices of scrap metal are the main reasons for the reported 2015 loss of EUR 188 thousand. ŽIAROMAT a.s. ŽIAROMAT a.s. is a traditional producer of heat-resistant materials. The production programme includes fire clay, heat-resistant concretes and other heat-resistant mixtures. Last year, the company was strongly affected by the reces - sion in metallurgy and decreased demand of new custom - ers in eastern Ukraine, and its production dropped sharply in late 2015. Fire clay building materials amounted to 37%, heat-resistant mixtures amounted to 27%, magnesite-car - bon building materials 10% and other materials 26% of total revenues in 2015. Last year, the company generated revenues from the sale of merchandise and own products and services totalling EUR 9 096 thousand, 7.5% less than in the previous year. Exports amounted to 54.1% of total sales. The company has registered capital of EUR 1 885 thousand and reported a profit of EUR 85 thousand at the end of 2015. Pipex (International) AG The share of PIPEX (International) AG in the sales of finished goods of Železiarne Podbrezová a.s. has decreased since 2011. The company was the second largest distributor in 2011, but fell to last place in 2015 and the parent company decided to sell the company. PIPEX (International) AG was sold on 20 November 2015 and cooperation with it was discontinued. The reason was the establishment of Pipex Deutschland GmbH that took over all German customers. Other international customers were taken over by the dis - tribution company PIPEX ITALIA S.p.A. In 9 months in 2015 under the control of Železiarní Podbrezová a.s. the company generated sales revenues totalling EUR 7 141 thousand. PIPEX ITALIA S.p.A. In 2015, PIPEX ITALIA S.p.A. was the most important trad - ing and distribution channel for the products of Železiarne Podbrezová a.s., with a 22% share of total sales. In 2015, the company generated revenues from the sale of merchandise and services totalling EUR 70 430 thousand. The company has registered capital of EUR 258 thousand and, as at year- end, reported a profit after tax amounting to EUR 703 thou - sand. SLOVRUR Sp. z o.o. In 2015, this company was the third major distribution channel. The company sold the products of Železiarne Pod - brezová a.s. on the Polish market, and its share in the total sales of products amounted to 13.3%. In 2015, the compa - ny generated revenues totalling EUR 30 765 thousand (PLN 131 178 thousand). The company’s registered capital is EUR 235 thousand (PLN 1 000 thousand) and, as at year-end, re - ported a profit after tax of EUR 494 thousand (PLN 2 104 thousand). Pipex Deutschland GmbH Pipex Deutschland GmbH started its business activities in 2013, gradually taking over some customers of PIPEX (In - ternational) AG, PIPEX ITALIA S.p.A. and the German agent RS GmbH, with the strategic objective of operating and ex - panding on the German market. In the third year of its op - erations, the company reported revenues from the sales of products totalling EUR 17 548 and a profit of EUR 77 thou - sand. The company’s registered capital is EUR 100 thousand with a 70% direct share of Železiarne Podbrezová a.s. ZANINONI SLOVAKIA, s.r.o. The company’s core business is the provision of forwarding services for the transportation of Železiarne Podbrezová a.s. products to all global markets. Last year, the company pro - vided services in the total amount of EUR 11 828 thousand. The company has registered capital of EUR 33 thousand and, as at the year-end, reported a profit after tax amounting to EUR 362 thousand. 33 Report by the Board of Directors on Business Activities, Assets, and Financial Performance in 2015 and Information on the Business Plan