Annual Report 2004

Ž E L E Z I A R N E P O D B R E Z O V Á ANNUAL REPORT 2004 28 REPORT BY THE BOARD OF DIRECTORS Purchase of ŠKODA TS a.s., Plzeň, the Czech Republic acquired through the subsidiary ŽĎAS, a.s. The portfolio of financial investments corresponds with the intention to diversify business activities of Železiarne Podbrezová, a strategy that is based on three pillars (metallurgy, heavy machine engineering and metallurgy, tourism). Consistent with the operations of Železiarne Podbrezová a.s., the subsidiaries also achieved good results for the year 2004 in the trading and production area as well as in the area of services. . During 2004 changes in financial investments in the individual companies resulted in the following: - increase of share capital of ŽP-Šport, a.s. + SKK 10 000 thousand Increases of non-current financial assets during 2004: - sale of shares in ŽP-Energo, s.r.o. – SKK 200 thousand - liquidation of the company Spoločný ukrajinsko - slovenský podnik "SUM" – SKK 172 thousand Decreases of non-current financial assets during 2004: