Annual report 2017

Železiarne Podbrezová a.s. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31 December 2017 (In whole euros) These notes are an integral part of the consolidated financial statements. This is an English language translation of the original Slovak language document. 7 1. GENERAL INFORMATION 1.1. Description of the Company Železiarne Podbrezová a.s. (hereinafter also the “Company” or “ŽP”) is a joint stock company that was incorporated on 21 April 1992 and established on 1 May 1992. The Company’s registered seat is at Kolkáreň 35, 976 81 Podbrezová, Slovakia (Company ID: 31 562 141, Tax ID: 2020458704). The Company produces steel pipes for industrial purposes, which are mainly sold to customers in Europe. The Company’s consolidated financial statements for the year ended 31 December 2017 comprise the Company and its subsidiaries (together referred to as the “Group”), and the Group’s share in a joint venture. The Group is active in the production and sale of steel pipes, machine-industry production, and tourism (see Note 3c). 1.2. Structure of shareholders and their shares in registered capital As at 31 December 2017, the Company’s shares were held by CPA s.r.o. (78.33%), HOLD s.r.o. (2.10%), and other minority shareholders (19.57%). The shareholders’ voting rights equal their ownership interest in the registered capital. The Company’s shares are certified registered shares and have been publicly non-tradable since 2007. 1.3. Members of Company’s bodies Supervisory Board Board of Directors Ing. Ján Banas – Chairman Ing. Jozef Marčok – Deputy Chairman Luigi Cuzzolin – Member Ing. Milan Mutiš – Member until 30 May 2017 Pavol Koštial – Member Ing. Vladimír Zvarík – Member Ing. Ľudovít Ihring – Member Ing. Tomáš Ihring – Member Soňa Lopušná – Member Ing. Jaroslav Romančík – Member since 31 May 2017 Ing. Vladimír Soták – Chairman Ing. Marian Kurčík – Deputy Chairman Ing. Július Kriváň – Member Ing. Ľubor Schwarzbacher – Member until 27 June 2017 Ing. Mária Niklová – Member Ing. Vladimír Soták, Jr. – Member Ing. Miloš Dekrét – Member Ing. Milan Srnka – Member since 27 June 2017 1.4. Unlimited guarantee The Company is not a partner to any unlimited liability company. 1.5. Legal basis for preparing the financial statements These financial statements are the annual consolidated financial statements of ŽP and its subsidiaries as prepared under Act No. 431/2002 Coll. on Accounting, as amended. The consolidated financial statements were prepared for the reporting period from 1 January 2017 to 31 December 2017 in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union (“EU”). The financial statements are intended for general use. 1.6. Approval of the 2016 Financial Statements On 27 June 2017, the General Meeting approved the consolidated financial statements of Železiarne Podbrezová a.s. for the year ended 31 December 2016. 1.7. Consolidated financial statements of the parent company The Company’s consolidated financial statements are included in the consolidated financial statements of the parent company, CPA s.r.o. The consolidated financial statements of CPA s.r.o. are available at the Company’s registered seat (Kolkáreň 35, Nový závod, 976 81 Podbrezová) and at the Registry Court in Banská Bystrica (Skuteckého 28, 975 59). 1.8. Comparatives As comparatives for the previous reporting period relating to assets, liabilities, and equity items, the financial statements present data reflecting balances as of 31 December 2016. For expenses and revenues, comparatives for the previous reporting period, ie year ended 31 December 2016, were used.