Annual Report 2008

REPORT ON THE ACTIVITY OF THE SUPERVISORY BOARD ŽELEZIARNE PODBREZOVÁ Dear shareholders. During the year, the Supervisory Board continuously monitored the activities ot the Board ot Directors and the Company's business activities with regard to compliance with the Articles of Association and valid legislation. No misconduct ot duties was identified. lndividual members ot the Board ot Directors conducted their duties with due professional care; their work and achieved results have confirmed the reputation ot high-quality management. In May 2009, the Supervisory Board reviewed the separate and consolidated financial statements prepared as at 31 December 2008 and the proposed distribution ot profit as presented by the Board of Directors. The Supervisory Board recommended that the General Meeting approve the separate and consolidated financial statements prepared as at 31 December 2008, and the proposed distribution ot profit for 2008. The Supervisory Board informs the General Meeting that,through its day-to-day activities,the Board ot Directors demonstrates that its top priority is to eliminate the negatíve impacts ot the global economic crises on the Company's operations. The Board ot Directors adopts and implements critical measures that, in the opinion ot the Supervisory Board, establish both adequate conditions to sustain the financial stability ot the Company and opportunities to strengthen its position on the market. Podbrezova, 20 May 2009 ,.~ Ing. Ján Banas Chairman ot the Supervisory Board