Annual report 2017

2017 ANNUAL REPORT Železiarne Podbrezová a.s. 21 The Company has a tradition of training qualified employees at its Private Secondary Apprentice School of Metallurgy thanks to the high-quality general and specialist education of students: metallurgists, electricians and mechanics, with the skills and abilities required to commence problem-free employment. In 2017, 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 646 graduates have been employed by theCompany, ofwhich less thanahalfworked for theCompany at the end of 2017. A total of 239 instructors led classes at the school. The school pays motivational scholarships and incentives for productive work to students undergoing on- the-job training. The school joined the dual learning process that combines school education with practical experience with an employer. However, this is the way the school has operated since its reopening by Železiarne Podbrezová a.s. and we will continue to support this well-established education system for creating a qualified workforce. In cooperation with the school, we introduced in 2016 and continued in 2017 complementary studies for our employees who will be able to obtain an apprenticeship certificate and take a graduation exam to become metallurgy operators after completing two-year external studies. The studies are intended for prospective employees without relevant education in the given field, and 18 Company employees are currently taking these studies. Železiarne Podbrezová a.s. has a tradition of cooperating with universities, as evidenced by a memorandum signed in 2017 on practical cooperation with eight universities. We have cooperated most with the Faculty of Metallurgy of the Technical University in Košice, with which we organise open- door days at our school and at the faculty, where we present study opportunities and graduate job opportunities at our Company. The Company offers university scholarships to selected talented secondary school students from our private schools. We cooperate with 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 required. Targeted cooperation with universities includes scholarships, professional internships, and graduation theses and is focused on obtaining qualified employees for the Company. The Company’s full-time equivalent was 3 165 employees in 2017, a y/y increase of 188 employees (6.3%). The increase in employees correlated with an increase in contracts and shift work to which work schedules and staffing norms were adjusted. The average monthly income in 2017 was EUR 1 116 per employee, a 7.8% increase compared to the previous year. The added value work productivity amounted to EUR 23 191 per employee, an increase by 19% compared to the previous year. Wages are almost 6.7% higher than average wages in Slovak industry. The average income for 2017 for blue-collar employees was EUR 961 per employee, up by EUR 96 (11.1%) compared to 2016. The subsidiaries of ŽP GROUP employed an additional 1 084 employees in 2017. The number of employees decreased by just four employees compared with the previous year. Of the total number of 1 084 employees of subsidiaries, 820 employees worked in Slovakia in production and services and 65 employees worked at ŽP’s private schools. Another 199 employees worked for other companies abroad. ŽP GROUP employed a total of 4 249 employees in 2017. Our newspaper, Podbrezovan, is the oldest company 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 with a circulation of approx. 6 300 copies. Our Company’s reputation is also enhanced by our management of Ľupča Castle, which is open to the general public. In cooperation with conservation authorities, the Ľupča Castle is being restored to its original appearance using grant programmes. As a result of these activities and various cultural events, the interest of the general public in this historical monument continues to grow and in 2017 there were a record number of visitors – 19 569, a 30% increase compared to 2016. REPORT BY THE BOARD OF DIRECTORS ON BUSINESS ACTIVITIES, ASSETS, AND FINANCIAL PERFORMANCE IN 2017 AND INFORMATION ON THE BUSINESS PLAN