Annual Report 2008

REPORT BY THE BOARD OF DIRECTORS ŽELEZIARNE PODBREZOVÁ The development of the Company's employment rate depends on the scope of contracts and is adjusted to the production needs. Each year, the effectiveness of individual working positions is assessed in relation to the management structure. In 2008, Železiarne Podbrezová continued to streamline its overal! management structure and all systemised working positions individually by units. In the last quarter ot 2008, the Company was attected by the tirst impacts ot the crisis; in November and December particularly, we experienced a shortage ot contracts. The tirst measure taken with regard to human resources was the decision not to extend the employment contracts concluded tor a definite period, which resulted in a headcount reduction ot 53 employees. We laid off 48 employees who were already pension beneticiaries or to whom the pension entitlement arose at that time. Compared to the previous year, the Company has 58 tewer FTE employees. In 2008, the Company employed 3 749 employees on average (an FTE number). The average monthly salary in 2008 amounted to SKK 25 541 (EUR 848) per employee, representing a year-on-year increase ot 2.0%. The average monthly salary in 2008 tor blue collar positions was SKK 21 802 (EUR 724) per employee, which represents a year-on-year increase of 4.6%. Work productivity trom added value per employee amounted to SKK 686.1 thousand (EUR 22.8 thousand) In 2008, the subsidiaries and associated undertakings in Slovakia employed an additional 5 038 employees. In 2008, the subsidiaries in the Czech Republic employed 3 210 people and another 218 employees in other countries. The longest-running company newspaper in Slovakia, Podbrezovan, which has been published continuously tor 65 years, plays a signiticant role in tacilitating communication and intormation. Together with the company rad io broadcasting, the newspaper represents an irreplaceable medium for intorming company employees and the general public in the region. Besides these traditional communication tools, Železiarne Podbrezová uses new progressive torms ot intormation media. The use ot the company intranet and the Internet is part ot the new intormation strategy with the parent company, the subsidiary, and associated undertakings. Qualification structure of Employees in 2008 100% 6% Primary education 37% Secondary protessional 48% Secondary accomplished 9% University Age structure of Employees in 2008 100% 1% Up to 20 years 13% 21 to 30 years 25% 31 to 40 years 29% 41 to 50 years 32% Above 51 years