Annual report 2017

2017 ANNUAL REPORT Železiarne Podbrezová a.s. 33 In 2017, the golf resort enjoyed stable attendance by individual clients and almost one hundred commercial, sport and club tournaments were organised. Given the high-quality snowmaking and big slopes, the winter ski centre mainly serves families with children and is also popular with schools and downhill skiing courses. This is good for hotels, which are fully booked during the peak season – Christmas and spring holidays. In 2017, the company generated revenues from the sale of goods and services amounting to EUR 3 518 thousand, a 6% decrease compared to the previous year. In 2017, the company generated a net profit of EUR 18 thousand, which was, however, impacted by deferred tax of EUR 114 thousand. As at 31 December 2017, the company’s assets totalled EUR 17 689 thousand, with almost 93% covered by equity. ŽP – Gastroservis, s.r.o. The company produces fresh, refrigerated and frozen meals, and provides comprehensive catering services for the parent company’s employees, and subsidiaries and external customers. In 2017, ŽP - Gastroservis supplied 23% of total meals outside the parent company. In 2017, the company sold products, services and goods totalling EUR 2 887 thousand and reported a profit after tax of EUR 8 thousand at the year-end. The company’s equity as at 31 December 2017 amounted to EUR 1 013 thousand, which is 73% of the asset coverage funding. FK Železiarne Podbrezová a.s. The company is one of two successor companies of ŽP Šport, a.s., and is a 100% subsidiary of Železiarne Podbrezová a.s. Its main task is to operate the professional first-league football club and all youth teams. The 2016/2017 season was the fourth season for the a team in the 1st Football League and the B team played in the 2nd Football League. In the future, the company would like the football team to cooperate with one or more local partners to increase the popularity of football with a wider regional audience and diversify income. In 2017, the company generated revenues from the sale of goods and services totalling EUR 1 392 thousand and reported a profit of EUR 172 thousand. The company’s equity as at 31 December 2017 amounted to EUR 584 thousand, which is approx. 58% of the asset coverage funding. ŠK Železiarne Podbrezová a.s. The company is the second successor company of the dissolved ŽP Šport, a.s. The minority shareholders include the municipality of Podbrezová and the civic association, Telovýchovná jednota ŽP Šport Podbrezová. The company operates a professional bowling club and youth cross-country skiing, cycling and downhill skiing teams. The bowling team has achieved notable successes in club competitions. In April 2017, the men’s team placed third in the Champions League final held in Podbrezová. In 2017, the company generated revenues totalling EUR 457 thousand and reported a profit of EUR 113 thousand. The company’s equity as at 31 December 2017 amounted to EUR 349 thousand, which is approx. 79% of the asset coverage. ŽP Informatika s.r.o. ŽP Informatika, s.r.o. provides comprehensive outsourcing services to Železiarne Podbrezová a.s. for IT and information systems. The company provides comprehensive services to all ŽP GROUP companies and its services are also provided to external entities. In 2017, the company generated revenues from the sale of goods and own outputs totalling EUR 3 958 thousand and reported a profit after tax of EUR 14 thousand. The company’s equity as at 31 December 2017 amounted to EUR 2 424 thousand, which is approx. 82% of the asset coverage. ŽP Bezpečnostné služby s.r.o. ŽP Bezpečnostné služby provides comprehensive private security services for Železiarne Podbrezová a.s and its subsidiaries in the ŽP GROUP and also cooperates with external security service companies. In 2017, the company generated revenues from the sale of own outputs totalling EUR 1 560 thousand. The company’s equity as at 31 December 2017 amounted to EUR 298 thousand and the company reported a profit of EUR 0.5 thousand. The company had 88 employees. REPORT BY THE BOARD OF DIRECTORS ON BUSINESS ACTIVITIES, ASSETS, AND FINANCIAL PERFORMANCE IN 2017 AND INFORMATION ON THE BUSINESS PLAN