Annual report 2018

Železiarne Podbrezová a.s. ANNUAL REPORT 2018 36 The operation and development of new information systems for the parent company and other companies in the ŽP GROUP will continue to be outsourced to our subsidiary, ŽP Informatika s.r.o. in 2019. As regards the development of application software, the focus in 2019 will be on the project of comprehensive change to the production information system, which will improve the planning, monitoring, and management of production and technical processes in the Company. The funding of the operational and CAPEX needs of the Company for 2019 is secured by a club credit line of EUR 18 million, which is due in July 2020, and by other separate contracts for short-term funding, which are used according to the Company’s operational needs. The total credit line is fully sufficient for problem-free funding in the near future and the Company has begun negotiations with banks on financing for the next period. The 2019 financial plan forecasts revenues of EUR 294.8 million and an operating profit of EUR 3.7 million. The Board of Directors plans to make a profit on financing activities of EUR 4 million, consisting mainly of dividends from subsidiaries. The total planned profit after tax is EUR 6.7 million. Business activities in tourism are undertaken at our subsidiary, Tále a.s., and we plan to further develop this area by improving the technical standards of the sports resort and increasing the efficiency of its operation. We aim to further improve the provided services and thus, strengthen our reputation with a wide range of customers in the winter and summer season. Subsidiaries in the consolidated group work closely with the parent company and contribute to the overall financial results. We plan a profit for most companies in 2019, which will be used to develop the companies appropriately, while generating dividends for the parent company. Consolidated revenues from the sale of goods, products and services for 2019 are planned in the amount of EUR 377 million, with a profit after tax of EUR 6.6 million. REPORT BY THE BOARD OF DIRECTORS ON BUSINESS ACTIVITIES, ASSETS, AND FINANCIAL PERFORMANCE IN 2018 AND INFORMATIONON THE BUSINESS PLAN