Annual Report 2011

Satisfactionof Liabilities Expenses, Revenues andResults of Operations Last year, the Company's financial position was balanced and stable. The Company fulfilled its obligations to financial institutions, state and public authorities,aswellastoallsuppliersinadueandtimelymanner. In 2011, the Company reported a net profit of EUR 14,409 thousand, which was the difference between total revenues in the amount of EUR 291,102 thousandandtotalexpensesintheamountofEUR276,693thousand. Operatingrevenuesaccountedfor98.4%oftotalrevenues.FinancialrevenuesintheamountofEUR5,694thousandrepresented2.0%oftotalrevenues andcomprisedexchangerategains,receiveddividendsfromsubsidiariesandrevenuesfromfinancialderivatives. The structure of expenses was similar to previous years. Compared to 2010, we saw an increase in consumed rawmaterials owing to price fluctuations and,ontheotherhand,adecreaseintheshareofexpensesforconsumedenergy,personnelexpensesandthedepreciationofnon-currentassetsintotal expensesasaresultofgreateroutputs. Thestructureofexpensesin2011: -Consumedrawmaterials 56.5%; -Consumedenergy 11.6%; -Service 7.3%; -Personnelexpense 19.7%; -Depreciationofnon-currentasset 2.1%; -Financialexpenses 0.7%; -Taxesandfees 0.9%; -Otherexpenses 1.2%. Thereturnoftotalexpensesandthereturnoftotalrevenueswere5.21%and4.95%,respectively. The financial data presented in the Annual Report are consistent with the data disclosed in the separate financial statements. To comply with the requirements of Slovak legislation, in particular Act No. 431/2002 Coll. on Accounting, the Company prepared its separate financial statements for the periodfrom1January2011to31December2011inaccordancewithInternationalFinancialReportingStandardsasadoptedbytheEuropeanUnion. s s s Ž E L E Z I A R N E P O D B R E Z O V Á A . S . 22 Data from Separate IFRS Statement of Changes in Equity For the year ended 31 December 2011 (in EUR thousand) Opening balance at 1 Jan 2010 Treasury shares Total comprehensive income for the year Dividends paid Treasury shares Distribution of profit/loss Total comprehensive income for the year Closing balance at 31 Dec 2010 Closing balance at 31 Dec 2011 81 061 - - - - - - 81 061 81 061 14 064 - - - - 985 - 14 064 15 049 -153 - 153 - - - - - - - -2 361 - - 2 361 - - -2 361 - Share capital Legal reserve fund Hedging derivatives 172 593 -2 361 10 006 180 238 -7 152 2 361 - 14 409 189 856 Treasury shares Retained earnings 87 476 93 747 77 622 - 9 854 -7 152 - -985 14 409 Total REPORT BY THE BOARD OF DIRECTORS ON THE BUSINESS ACTIVITIES, ASSETS, AND FINANCIAL PERFORMANCE IN 2011 AND INFORMATION ON THE BUSINESS PLAN