Annual Report 2005

by SGS Slovakia spol. s.r.o., in compliance with EN ISO 14 001:2004. From 1 January 2006, Železiarne Podbrezová a.s. updated their environmental policy whereby the Company’s Board of Directors publicly declared their respect for environmental concerns and their responsibility for systematic improvement. In order to comply with European Union legislation, upon the entry of Slovakia to the European Union we implemented regulations governing the requirements and duties in individual areas of environmental activities. Such activities are directed towards improvements in the quality of air, water, and waste management, and as such are intended to reduce the risk of ecological disasters. The year 2005 was the first year of three-year carbon oxide quota trading. In compliance with legislative requirements, the Company ensured monitoring and regular evaluation of carbon oxide emissions. In the area of waste management, we have prepared the Programme for Decontamination and Replacement of Equipment Containing PCB (Polychlorinated Biphenyls) up to the end of 2010. In accordance with the Act on the Integrated Prevention and Control of Environment Pollution, the Company gained an integrated licence for such activities. Research and Development Activities in research and development in 2005 focused on research of new materials, and mainly the power and automotive industries and machinery engineering. R&D further included optimizing technological parameters of steel and tube production. Environmental issues were also addressed. Actual R&D costs amounted to SKK 4 055 thousand. In 2006, R&D projects totalling SKK 6 850 thousand are planned. During their realization we will continue our close co-operation with the Material Research Institute of Slovak Academy of Science in Košice, and the Welding Research Institute in Bratislava. HUMAN RESOURCES The personnel strategy of the Company is based on the concept that human resources are the most important asset. Therefore, the Company has incorporated sophisticated personnel systems including education, training, employee benefits, labour safety and health protection, and social policy. These programmes are updated and extended each year in line with the financial plan of the Company by investing in the further education and health of its employees and their families, as well as through the sponsorship of sports and cultural events. The Company’s program covering personnel issues, remuneration, social policy and labour safety and labour protection is set out in the Collective Treaty for 2004, as signed between the Trade Unions ZO OZ KOVO and the Board of Directors of Železiarne Podbrezová a.s. The Company has met all its duties and obligations arising thereof. We provide our employees with a catering service and preventive medical care. Those working in risk units are offered preventive medical care, revitalization and rehabilitation stays. A twenty-four hour accident policy was implemented for all employees, and other benefits approved within the social fund budget amounted to SKK 13 725 thousand. In the private secondary apprentice school of metallurgy in Lopej, we have provided the opportunity of qualifications for young people – our future workers – metallurgists, electricians, and mechanics. After graduating in 2005, 22 such students began working with Železiarne Podbrezová a.s. In 2006, 56 new apprentices are expected to begin employment, and we will have the opportunity to employ a further 80 to 100 young people in the future. REPORT BY THE BOARD OF DIRECTORS Report by the Board of Directors Annual Report 2005 Železiarne Podbrezová 17