Annual report 2016

ANNUAL REPORT 2016 • Železiarne Podbrezová a.s. 15 In 2016, recertification audits according to ISO 9001:2008 and ISO TS 16949:2009 were performed as part of the quality management system at Železiar - ne Podbrezová a.s. All audits were successful and we retained certificates confirming that the production processes are certified and in compliance with the re - levant standards. We also passed the environmental management system recertification according to EN ISO 14001:2004 and the supervision audit of the work safety management system according to OHSAS 18001. In 2016, we sold products, goods and services in the to- tal amount of EUR 189 796 thousand to our customers, of which almost 86% were exported. This is a decre- ase of EUR 31 940 thousand (14.4%) compared to the previous year. Sales revenues fell considerably due to a significantly lower volume of sold steel blooms and a substantial decrease in the sales prices of seamless rolled tubes by over 12%. The sales of precision tubes also decreased, and sales prices dropped by almost 4% compared to 2015. The geographical structure of sales in 2016 did not change significantly compared to previous years. The main market segment continued to be EU countries in the following order of importance: Germany, Czech Republic, Poland, Italy and Slovakia. There were no significant deviations compared to 2015 as regards the sectors in which our products were used. They are primarily used in the production of machi- nery and equipment (45 – 46%), the energy sector (24 – 38%), hydraulic equipment, the automotive in- dustry, and oil and gas transportation. Development of total sales by geographical structure (Revenues in EUR ‘000) 2012 2013 2014 2015 2016 Slovakia 32 090 24 602 30 008 30 293 27 422 Czech Republic 46 640 43 526 41 187 34 741 22 637 Other EU countries 155 395 142 936 144 671 137 014 122 278 Other European countries 16 906 11 120 11 366 9 024 10 586 Other exports 13 396 12 153 12 979 10 664 6 873 Total sales 264 427 234 337 240 211 221 736 189 796 Application of tubes in 2016 45% MECHANICAL ENGINEERING 24% POWER GENERATION 16% HYDRAULICS & PNEUMATICS 12% AUTOMOTIVE INDUSTRY 3% OTHER SECTORS 46% MECHANICAL ENGINEERING 38% POWER GENERATION 13% TRANSPORT OF FLAMMABLE MEDIA 3 % CONSTRUCTION INDUSTRY Precision cold-drawn tubes Seamless hot-rolled tubes REPORT BY THE BOARD OF DIRECTORS ON BUSINESS ACTIVITIES, ASSETS, AND FINANCIAL PERFORMANCE IN 2016 AND INFORMATION ON THE BUSINESS PLAN