Annual Report 2010

2010 ANNUAL REPORT REPORT BY THE BOARD OF DIRECTORS Legal requirements concerning waste management were ensured by fulfilling the Decontamination Programme and by replacing PCB-containing equipment (polychlorinated biphenyls)-the total of465 compensation condensers. Since !he European Parliamenťs Regulation on !he Registration, Evaluation, Authorisation and Restriction of Chemicals ("REACH") came into farce, Železiarne Podbrezová a.s. completed, on the set deadline, the registration process of iron, slag and scale as the company'sproducts and proved they are safe far both human health and the environment. As an active participant in the carbon oxide emission quotas trading scheme, in compliance with legislative requirements, we ensured carbon oxide emissions were monitored and evaluated regularly in 201 O. Restricted operations of key metallurgical plants in the first halfof 201 O resulted in lowervolumes of carbon oxide emissions. Research and Development In 201 O research and development was also affected by a prudent attitude. In 201 O, R&D costs amounted to EUR 26.3thousand. R&D activities facused on optimising the process of cooling the cylinders of the tube reducing mill and on optimising the galvanised tubes. Othertasks required by Železiarne Podbrezová a.s. were dealt with by asubsidiary-ŽPWC s.r.o. HUMAN RESOURCES After 2009,when the company management had to adjust the HR management strategy,201 O became the yearof stabilisation and gradual progression. And indeed, this year was important far !he company also because of numerous events through which we remembered the 170th anniversary of faunding the metallurgic production in Podbrezová. The celebration included many activities and events organised throughout the year, but the most memorable one is sure to be the gathering of management with current and farmer employees al !he faotball stadium in Podbrezová, where almost 5,000 people attended !he cultural programme. The anniversary year will also be commemorated in apublication issued on !he occasion of !he 170th anniversary celebration and by aspecial tribute paid by the Board members to all employees who worked far 30 years or more far their loyalty to the company. According to !he key premise that what makes afirm is its people, in 201 O the company gradually adopted personnel management decisions on improving the employee care programme. Employees are perhaps very sensitive to wage changes and in this regard we are proud to say that in 201 O wages increased by 20.6%compared to the previous year and we were able to reach the pre-crises level. Compared to the previous yearwe also experienced an increase of7.1%in the number of employees. Following the principle that taking care of employees is a roadmap to higher performance, the company adopted the Personnel, Wage, Social and Occupational Health and Safety Policy Programme;!he programme is set out in two basic documents:!he 2010 Collective Agreement concluded between ZO OZ KOVO (KOVO Trade Union works council) and the Board of Directors of Železiarne Podbrezová a.s. and the 201 O Employee Care Programme of the Board of Directors of Železiarne Podbrezová a.s. The Company fulfilled its obligations arising from the CollectiveAgreementand the Employee Care Programme. In 2010,EUR 321 thousand was spentfrom the social fund as follows: • Catering services far employees • Recuperation of employees (vouchers to purchase medicines and vitamins) • Accident insurance farall employees (24 hours) • Social aid to employees • Use of summer and winter spor! facilities in the reg ion • Summer camps far children • Cultural events,programmes far children • Other benefits The Employee Care Programme was supplemented by the fallowing: • Employer'scontribution to supplementary pension scheme • Protective equipment and drinking regime far employees • Bonuses provided with regard to work or life jubilees • Rehabilitation stays far employees,preventative medical examinations far employees in exposure units and selected middle management • lmprovement and enhancement of employee qualifications • Preparation offuture workfarce and granting of scholarships • Comprehensive programme of recuperative measures EUR 121 thousand EUR 66 thousand EUR 55 thousand EUR21 thousand EUR 17 thousand EUR 19 thousand EUR3thousand EUR 19thousand EUR 712thousand EUR 366 thousand EUR 108thousand EUR 59 thousand EUR 122thousand EUR 357 thousand EUR 458 thousand 1