Annual report 2018

37 Železiarne Podbrezová a.s. ANNUAL REPORT 2018 CONCLUSION The year 2018 was one of the best years in the modern history of the Company. We broke a number of production records and achieved the best operating results in the past decade. The biggest achievements of 2018 include: full utilisation of our production capacities, an increase in the real wages of all employees, implementation of the medium-term investment plan and the significant increase in the Company’s operating profitability. Despite continual uncertainty and risks in production and sales planning, we believe that the steel tube production industry will continue to prosper in the future given the global population growth, increasing urbanisation, continued demand from the automotive industry and oil and gas mining. Železiarne Podbrezová a.s. acted very flexibly and took advantage of all market opportunities during 2018. The Company’s Board of Directors considers 2018 as positive both in terms of production and the financial results. All employees, including the management and employees of subsidiaries, contributed to the Company’s success. The 2018 profit amounted to EUR 13 306 thousand, with earnings per share of EUR 5.6. Therefore, we propose that the General Meeting approve the payment of dividends to shareholders from Retained earnings from previous years, as in past years. Sales revenues for the consolidation group amounted to EUR 397 579 thousand and the consolidated net profit amounted to EUR 18 232 thousand, of which EUR 17 480 thousand pertained to the shareholders of Železiarne Podbrezová. There was a 19% increase in consolidated revenues and a significant increase in profitability for the entire ŽP GROUP compared to 2017. Železiarne Podbrezová continue to be a stable partner for many small and medium-sized entrepreneurs in the region and a number of established suppliers. As the largest employer in the region, the Company guarantees social security in the Brezno district and across the Banská Bystrica region. The Board of Directors of Železiarne Podbrezová a.s. would like to thank all our colleagues, as without their contribution, these results could not have been achieved. We would also like to extend our thanks to our suppliers, customers, financial institutions and all our business partners for their cooperation. We hope our good business relations will continue to develop successfully in the future. We thank you for your trust. Approved by a decision of the Board of Directors on 29 May 2019. REPORT BY THE BOARD OF DIRECTORS ON BUSINESS ACTIVITIES, ASSETS, AND FINANCIAL PERFORMANCE IN 2018 AND INFORMATIONON THE BUSINESS PLAN