Annual report 2019

25 Železiarne Podbrezová a.s.: ANNUAL REPORT 2019 SETTLEMENT OF PAYABLES The Company’s financial situation in 2019 was balanced and stable and the Company fulfilled its obligations to financial institutions, state and public authorities, employees, shareholders and suppliers in a due and timely manner and in the agreed amounts. EXPENSES, REVENUES AND PROFIT/(LOSS) In 2019, the Company generated a net profit of EUR 7 239 thousand, recognised as the difference between total revenues (EUR 267 796 thousand) and total expenses (EUR 260 557 thousand). Operating revenues contributed most (98%) to the Company’s total revenues. Financial income of EUR 5 357 thousand amounted to 2% of total revenues and mainly consisted of dividends received from subsidiaries, interest income and foreign exchange gains. There were minor changes to the structure of expenses compared to the previous year. The share of expenses for raw materials and consumables used of total operating expenses decreased from 63% to 59%. The share of personnel expenses increased from 24.9% to 28.2% of total operating expenses and the share of services increased from 8.1% to 8.7%. Total operating expenses for 2019 decreased by more than EUR 26 million (9%), mainly due to the decrease in production volume and the decrease in prices of input raw materials. The return on total revenues and return on total expenses remained approximately the same: 2.7% and 2.8%, respectively. ASSETS AS AT 31 DEC 2019 STRUCTURE OF TOTAL EXPENSES IN 2019 EQUITY & LIABILITIES AS AT 31 DEC 2019 REPORT BY THE BOARD OF DIRECTORS ON BUSINESS ACTIVITIES, ASSETS AND FINANCIAL PERFORMANCE IN 2019 AND INFORMATION ON THE BUSINESS PLAN