Annual report 2018

21 Železiarne Podbrezová a.s. ANNUAL REPORT 2018 The Company has a tradition of training qualified employees at its Private Secondary Apprentice School of Metallurgy (SSOŠH ŽP) thanks to the high-quality and specialist education of students: metallurgists, electricians and mechanics, with the working skills and abilities enabling a problem-free employment. In 2018, 30 school graduates were employed at the Company after completing their studies and others will continue their studies at universities. Since the establishment of the school, a total of 686 graduates have been employed by the Company, of which less than a half worked for the Company at the end of 2018. A total of 235 instructors led classes at the school and the school paid motivational scholarships and incentives for productive work to students undergoing on-the-job training. The school joined the dual learning process that combines school education with practical experience with an employer. The school has operated successfully since its reopening by Železiarne Podbrezová a.s. and we will continue to support this well-established education system for creating a qualified workforce. In 2018, 21 employees were allowed to study and work to improve their work-related qualifications with working reliefs, of which 19 study for the bachelor degree of metallurgy and two employees study at the Technical University of Košice and the Faculty of Material Sciences and Technology of the STU. Železiarne Podbrezová a.s. has a tradition of cooperating with universities, as evidenced by a memorandum signed in 2017 on practical cooperation with eight universities. The Company has cooperated most with the Faculty of Materials, Metallurgy and Recycling of the Technical University in Košice, with which it organises open-door days at the Company’s school and at the faculty, where study opportunities and graduate job opportunities at the Company are presented. The Company offers university scholarships to selected talented secondary school students from the Company’s private schools. Železiarne Podbrezová a.s. cooperates with the Matej Bel University, especially with the IT Department, in connection with secondary school IT classes and the subsidiary, ŽP Informatika, s.r.o. The Company also cooperates with other departments as required. Targeted cooperation with universities includes scholarships, professional internships, and graduation theses and is focused on obtaining qualified employees for the Company. The Company’s full-time equivalent was 3 204 employees in 2018, a y/y increase of 39 employees (1.2%). The increase in employees correlated with an increase in contracts and shift work to which work schedules and staffing norms were adjusted. The average monthly earnings in 2018 was EUR 1 261, a 13% increase compared to the previous year. The added value work productivity amounted to EUR 29 444 per employee, an increase by 27% compared to 2017. The average wages at the Company are almost 13% higher than average wages in the Slovak industry. The average earnings for 2018 for blue- collar employees was EUR 1 077 per employee, up by EUR 116 (12.1%) compared to 2017. The ŽP GROUP subsidiaries employed an additional 1 113 employees in 2018, an increase by 29 employees compared to the previous year. Of the total number of employees of subsidiaries, 844 employees worked in Slovakia in production and services and 61 employees worked at ŽP’s private schools. Other companies abroad employed 208 staff. The ŽP GROUP employed a total of 4 317 employees in 2018. Our newspaper, Podbrezovan, is the oldest company newspaper in Slovakia and has been published for more than 70 years. Podbrezovan is distributed to current and retired employees, who receive information about Company life. The newspaper is an irreplaceable source of information for Company employees and the general public in the region about operations at the parent company and its subsidiaries and is published every two weeks with a circulation of approx. 6 300 copies. Our Company’s reputation is also enhanced by our management of the Ľupča Castle, which is open to the general public. In cooperation with conservation authorities and also using grant programmes, the Ľupča Castle is being restored to its original appearance. As a result of these activities and various cultural events, the interest of the general public in this historical monument continues to grow and in 2018 the castle saw a record number of visitors: 20 889, a 7% increase compared to 2017. REPORT BY THE BOARD OF DIRECTORS ON BUSINESS ACTIVITIES, ASSETS, AND FINANCIAL PERFORMANCE IN 2018 AND INFORMATIONON THE BUSINESS PLAN