Annual report 2012

ŽELEZIARNE PODBREZOVÁ A.S. ANNUAL REPORT 2 012 12 REPORT BY THE BOARD OF DIRECTORS ON THE BUSINESS ACTIVITIES, ASSETS, AND FINANCIAL PERFORMANCE IN 2012 AND INFORMATION ON THE BUSINESS PLAN Dear Shareholders, The Board of Directors of Železiarne Podbrezová a. s. considers the results of the 2012 economic year successful, although not all objectives set in the business plan for this period were met. Our long-term business experience contributed significantly to the acquisition of sufficient contracts in the difficult period of cost-cutting in almost all European countries, which ultimately led to lower demand for steel products in all relatedmanufacturing sectors. The lower demand was most pronounced at the end of the year, and the Board of Directors responded by adjusting the work regime in some plants and by reducing the number of employees. Nevertheless, we achieved solid utilisation of the technological equipment; however, we did not achieve the profitability level fromtheprevious two years. View of the Železiarne Podbrezová’s old mill with the eyes of the painter, Piotr Stronski, 2012