Annual Report 2008

Legal name Services ŽP-lnvest s.r.o. ŽP - Gastroservis, s.r.o. ŽP Informatika s.r.o. ŽP Šport, a.s. ŽP BYTOS, s.r.o. ŽP VVC s.r.o. 2 o o 8 REPORT BY THE BOARD OF DIRECTORS lnterest lnvestment Ownership Registered office in share Consolidated in SKK 'OOO 111 interest capital Podbrezová, SR 41 268 100.00% direct yes Valaská, SR 28 OOO 100.00% direct yes Podbrezová, SR 25 OOO 100.00% direct yes Podbrezová, SR 15 320 99.80% direct yes Podbrezová, SR 2 100 100.00% direct yes Podbrezová, SR 1 OOO 100.00% direct yes Motor-Car Podbrezová s.r.o. Podbrezová, SR 560 49.00% direct yes HRON - AIR s.r.o. Podbrezová, SR 121 34.00% direct yes Other capital participation Nadácia Železiarne Podbrezová Podbrezová, SR 200 100.00% direct yes STABILITA, d.d.s., a.s. Hutnictví železa, a.s. Košice, SR o 5.17% -------- no Praha, Czech Republic o 2.34% -------- no 111 Net carrying amount (net of created provisions). lnvestments in a foreign currency translated at the NBS Exchange rate as at 31 December 2008. 121 Železiarne Podbrezová a.s. holds 100%of the voting rights in Transformaciones Metalurgicas S.A. and TAP Tubos de Acero de Precisión, S.L. Additions to and disposals of financial investments in 2008 are described in detail in the notes to the consolidated financial statements. TRANSMESA and TAP The most significant transaction is considered the acquisition of a 64.5% share in Transformaciones Metalurgicas SA and a 50% share in its subsidiary TAPTubos de Acero de precisión, S.L. This acquisition strengthened the international position of both companies among European and global competitors in the manufacturing and sale of precision cold drawn steel tubes. In economic terms, 2008 can be considered successful as the pian was slightly exceeded and the consolidated net profit after taxation amounted to EUR 503 thousand (SKK 15.2 million) These results were attributable to a stable contract base, mostly in the first three quarters of 2008. A gradual downturn in demand was experienced in late 2008 due to the impacts of the global economic crisis. Production quality was maintained in line with the quality management system certified under the ISO 9001 :2000 standard and the Environmental Management System under the ISO 14001 :2004 standard. Apart !rom the sufficient number of contracts, the positive results throughout the year were attributable to the continuing trend of increasing sales prices. The exceeded planned increase was caused by higher demand for galvanised tubes and an increase in input prices of rolled material. In 2008, the Company supplied its customers with products in the total volume of 9 517 tonnes; the