Annual report 2016

ANNUAL REPORT 2016 • Železiarne Podbrezová a.s. 36 profit to ensure the adequate development of all group companies and dividends for the parent company. The consolidated revenues from the sale of merchan- dise, finished goods and services for 2017 are planned in the amount of EUR 264.3 million. The operation and development of the information system at the parent company will continue to be outsourced to our subsidiary, ŽP Informatika s.r.o. in 2017. This company will also provide its services to the largest extent possible to the subsidiaries and will continue to provide its services to external entities. As regards the development of application software for the parent company’s needs, the emphasis in 2017 will be on unifying business activities for all trading sub- sidiaries and the full launch of the project of compre- hensive change to the production information system, which will significantly improve the planning, moni - toring, and management of production and technical processes. The funding of the operational and CAPEX needs of the Company for 2017 is secured by a club credit line of EUR 20 million, which is due in July 2020, and by oth- er separate contracts for short-term funding. The total credit line is fully sufficient for continuous funding for the following years. With regard to the sales in the amount of EUR 209.4 million, the Board of Directors of Železiarne Podbrezová a.s. expects to post an operating loss of EUR 3.6 million in 2017. The loss will be mostly absorbed using the profit from financial activities, consisting mainly of dividends from subsidiaries. Business activities in tourism are now fully integrated at the subsidiary, Tále a.s., and we aim to further de- velop our tourism business. By further improving the technical standards of the sports resort and increasing efficiency, we aim to further improve the services pro - vided and strengthen our reputation with a wide range of customers. The scope of the business activities of Železiarne Podbrezová a.s. is also supported by the activities of its subsidiaries, which contribute to the consolidated economic results. We plan to post a profit at all sub - sidiaries in 2017. The objective is to generate sufficient REPORT BY THE BOARD OF DIRECTORS ON BUSINESS ACTIVITIES, ASSETS, AND FINANCIAL PERFORMANCE IN 2016 AND INFORMATION ON THE BUSINESS PLAN