Annual Report 2011

Ž E L E Z I A R N E P O D B R E Z O V Á A . S . 35 REPORT ON THE ACTIVITIES OF THE SUPERVISORY BOARD TheSupervisoryBoardstatesthatthebusinessactivitiesoftheCompanywerecarriedoutinlinewiththelegislationandtheArticlesofAssociation.The membersoftheBoardofDirectorsperformedtheirofficeswithprofessionalcare,inlinewiththeinterestsoftheCompanyandallitsshareholders.The BoardofDirectorsprotectedthelegitimateinterestofsmallshareholdersinamannersuperiortotheSlovakstandard,beyonditsstatutoryobligations. The Supervisory Board examined the separate and consolidated financial statements prepared for the reporting period ended 31 December 2011. It didnotfindanyinconsistencies.Itagreeswiththeauditor'sopinionthatthefinancialstatementsprovideatrueandfairviewandrecommendsthatthe GeneralMeetingapprovebothfinancialstatements. The Supervisory Board recommends that the General Meeting discuss in detail the proposal of the Board of Directors for the 2011 profit distribution submitted to the shareholders in their invitation to the General Meeting. A thorough consideration of the matters related to the effective legislation governing dividend tax could be beneficial to the shareholders. Unless the shareholders present at the General Meeting propose a different method of profitdistribution,theSupervisoryBoardrecommendsthattheGeneralMeetingapprovetheproposaloftheBoardofDirectors. The Supervisory Board proposes that the General Meeting approve Deloitte Audit s.r.o. as the auditor of the financial statements for the following period. InPodbrezová,19June2012 Ing.JánBanas ChairmanoftheSupervisoryBoard