Annual Report 2007

39 Ž E L E Z I A R N E P O D B R E Z O V Á 2 0 0 7 REPORT BY THE BOARD OF DIRECTORS During recent years, the Company’s business activities in tourismwere gradually integrated in subsidiary Tále a.s. Today, this is the third main pillar of the diversification of business activities. Considerable investments were made into accommodation facilities: Stupka Hotel, Golf Hotel, and the sports facility in Tále which includes a ski resort and an 18-hole golf course completed in 2002. We intend further investments to develop this segment. In 2008, we will continue project preparations for the construction of the Brezinky golf course and will commence construction of the Krpáčovo Hotel. By the effective operation of the recreational and sports premises, we will aim at further improving rendered services and winning recognition from among a wide range of customers. The scope of business activities carried out by Železiarne Podbrezová is also supported by the activities of other subsidiary and associate undertakings, which contribute to the consolidated economic results. Upon meeting the planned revenues from sales of goods, own products, and services of SKK 17.8 billion within the consolidated group, we expect the generation of consolidated profit attributable to Železiarne Podbrezová of SKK 990 million. We highly regard the results of operations achieved in 2007. Business profitability and labour productivity ratios reached a high level, which will be extremely difficult to match in future years. In the previous year, the global boom of the metallurgical industry continued. We were able to fully take advantage of this favourable situation in terms demand. Technological equipment was used in an optimummanner, thereby maintaining a steady level of operating expenses despite the increased prices of input materials and energies. The long-term experience of the personnel that was willing and able to communicate under the leadership of mature management made good use of the year-long work drive. The result, as recognized in the separate financial statements, was net profit of SKK 1 013 280 thousand. Based on the requirements of Slovak legislation, Act No. 431/2002 Coll. on Accounting, the Company prepared separate financial statements for the period from 1. 1. 2007 until 31. 12. 2007 in accordance with International Financial Reporting Standards as adopted by the European Union. The subsidiary and associate undertakings also took an active part in the generation of results of operations of Železiarne Podbrezová a.s. The consoli- dated group generated profit of SKK 16 030 132 thousand. The profit of SKK 1 373 117 thousand was assigned to the shareholder, Železiarne Podbrezová a.s., as a consolidating reporting enterprise. The Company's prosperity in the long term represented a guarantee for the successful operation of small- and medium-sized businesses in the region. Jobs and the steady income provided by Železiarne Podbrezová and its subsidiaries create an encouraging social background in the district of Brezno. CONCLUSION Hereby, the Board of Directors of Železiarne Podbrezová a.s. wish to express their gratitude and appreciation to all our colleagues, as without their contribu- tion the presented results could not have been achieved. Additionally, we would like to extend our thanks to our suppliers, customers, banks and financial institutions, and to all our business partners for their cooperation. We wish to further promote our good trade relations in forthcoming periods. Thank you for your confidence. Approved by the decision of the Board of Directors on 13 May 2008.