Annual Report 2005

Shares Trading The shares of Železiarne Podbrezová a.s. were traded on the open market of the Bratislava stock exchange during 2005. As part of exchange rate transactions performed on the market, 52 995 shares in the amount of SKK 58 million were converted, i.e. growth of more than SKK 40 million compared to 2004. On the open market in 2005, Železiarne Podbrezová a.s. shares were the second most traded. The share price increased from SKK 730 to SKK 1 950 during 2005 and the average rate was SKK 1 101 per share. The market capitalisation amounted to SKK 4 549 million (at share price of SKK 1 908 as at 23 December 2005). Share price on stock exchange in 2005 Corporate Governance The Board of Directors of Železiarne Podbrezová a.s. realises that both the trust of the current owners and the interest of future investors create the fundamental conditions for the successful operation and further development of business activities. The Board of Directors takes care of increasing standards in respect of the company’s governance and management on an on-going basis. The core document in the respective area is the Articles of Association that defines the main principles of the proper management of the Company, as well as the rights and duties of the Company’s bodies. At the same time, the legal requirements applied to the joint stock company’s governance are fully upheld. Although the Company did not acknowledge a voluntary Corporate Governance Code based on OECD Principles, recommended by the Bratislava Stock Exchange, there are numerous Company governance and management rules that result from the aforementioned code, which were already introduced and further developed. In the following years, the Board of Directors and Supervisory Board will aim at the adoption of additional tools and procedures in this area. I II III IV V VI VII VIII IX X XI XII SKK 2 000 SKK 1 500 SKK 1 000 SKK 500 SKK 0 INFORMATION FOR SHAREHOLDERS Information for shareholders Annual Report 2005 Železiarne Podbrezová 37