Annual Report 2007

3 Ž E L E Z I A R N E P O D B R E Z O V Á 2 0 0 7 A WORD FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS A good closing-balance was mainly a result of a sufficient amount of engagements for almost all cost centres. Prices at which we were selling our products both at the European and global markets were favourable for us. Last year we had already warned the too rapid revaluation of the Slovak currency and its impact on exporters and our Company. Negative impacts were evident as early as the winter months in the form of the enormous increase in the prices of input raw materials required for our production, such as scrap steel, raw iron, and ferro-alloys. Nevertheless, the Board of Directors regards last year’s results very positively and it is my pleasure to thank all our suppliers, customers, financial institutions, and last but not least our staff for their excellent cooperation. Through these steps we have created good conditions for further progress. Our products demonstrated a significant improvement in quality. The percentage of claims in comparison to produced quantity is negligible. The Company nurtured its future across all aspects – technological, commercial, financial, and also personnel. We are the only Company that owns private schools. In 2007, our subsidiaries were also successful, with ŽP PRAKO s.r.o., Prakovce being the only company that is in the process of revitalization. Dear shareholders, We are facing a period in which the aforementioned negative impacts are apparent. As a result, the operations are unlikely to achieve similar financial figures as those obtained over the last three years. However, in January 2009 we will take a significant step ahead with the transition to the euro, this will undoubtedly have a positive impact on citizens as well as big manufacturing companies. Finally, I would like to express my gratitude to everybody who contributed to the good results in 2007. May I express my belief that Železiarne Podbrezová a.s. will continue to maintain its position in both European and Slovak markets, and that it will rank amongst the most successful companies in the Slovak Republic as well as the European Union. The firm foundations for these strong results were laid in the past, and the Board of Directors will endeavour to continue this trend Ing. Vladimír Soták Chairman of the Board of Directors and CEO Dear shareholders. In 2007, our Company’s results were once again very successful, we rate it as our third most successful year.