Annual report 2016

ANNUAL REPORT 2016 • Železiarne Podbrezová a.s. 21 ŽP’s Private Secondary Metallurgy Apprentice School (SSOŠH ŽP) provides qualified employees thanks to the high-quality general and specialist education provid- ed to students – future employees: metallurgists, elec- tricians and mechanics, with the skills and abilities required to begin problem-free employment. In 2016, 38 school graduates were employed at the Company after completing their studies and others will continue their studies at universities. Since the establishment of the school, a total of 606 graduates have been em- ployed by the Company, of which 279 worked for the Company as at the end of 2016. A total of 272 instruc- tors led classes at the school. The school pays motiva- tional scholarships and incentives for productive work to students undergoing on-the-job training. The Com- pany will continue to support this well-established ed- ucation system for creating a qualified workforce. In 2016, in cooperation with SSOŠH ŽP, the Company introduced complementary studies for its employees who will be able to obtain an apprenticeship certifi- cate and take a graduation exam to become metal- lurgy operators after completing two-year external studies. The studies are intended for prospective em- ployeeswithoutrelevanteducationinthegivenfield,and 18 Company employees are currently taking these studies. Železiarne Podbrezová a.s. has cooperated in the long- term with universities – most notably with the Metal- lurgy Faculty of the Košice Technical University, with which we organise open days at our school and at the faculty, where we present study opportunities and graduate job opportunities at our Company. The Com- pany offers university scholarships to selected talent- ed secondary school students from our private schools. We cooperate with the Matej Bel University, especially with the IT Department, in connection with secondary school IT classes and our subsidiary, ŽP Informatika, s.r.o. We also cooperate with other departments as re- quired. Targeted cooperationwith universities includes scholarships, professional internships, and graduation theses and is focused on obtaining qualified future em- ployees for the Company. The Company’s full-time equivalent was 2 977 employ- ees in 2016, a y/y decrease of 146 employees or 4.7%. The decrease was directly proportional to the decrease in contracts to which work schedules and staffing norms were adjusted. The average monthly income in 2016 was EUR 1 035 per employee, a 2.2% increase compared to the previous year. The added value work productivity amounted to EUR 19 446 per employee, a decrease of 4.9% compared to the previous year. Wages are almost 3.7% higher than average wages in Slovak industry. The average income for 2016 for blue-collar employees was EUR 865, an ap- prox. 1% increase compared to 2015. The subsidiaries of Železiarne Podbrezová, a.s. em- ployed an additional 1 088 employees in 2016. This is a significant y/y decrease of 2 704 employees primar- ily caused by the sale of subsidiaries ŽĎAS a.s. and TS Plzeň a.s. in the Czech Republic, which employed a total of 2 666 persons. Of the total number of 1 088 employees of subsidiaries, in Slovakia 819 employees worked in production and services and 65 employees worked at ŽP’s private schools. 204 employees worked for other companies abroad. In total, the ŽP GROUP em- ployed 4 065 employees in 2016. Our newspaper, Podbrezovan, is the oldest compa- ny newspaper in Slovakia and has been published for more than 70 years. Podbrezovan is distributed to current and retired employees, who receive regular information about Company life. The newspaper is an irreplaceable source of information for Company employees and the general public in the region about operations at the parent company and its subsidiaries and is published every two weeks and has a circulation of approx. 6 200 copies. Our Company’s reputation is undoubtedly also en- hanced by our management of Ľupča Castle, which is open to the general public. In cooperation with conser- vation authorities, the Ľupča Castle is being restored to its original appearance also using grant programmes. As a result, the interest of the general public in this historical monument continues to grow and in 2016 there were a record number of visitors – 14 999, a 17% increase compared to 2015. REPORT BY THE BOARD OF DIRECTORS ON BUSINESS ACTIVITIES, ASSETS, AND FINANCIAL PERFORMANCE IN 2016 AND INFORMATION ON THE BUSINESS PLAN