Annual report 2019

33 Železiarne Podbrezová a.s.: ANNUAL REPORT 2019 ŽP Trade Bohemia, a.s. ŽPTrade Bohemia, a.s. sells the parent company’s products on the Czech market, and is the third most important sales and distribution channel for the products of Železiarne Podbrezová a.s., with a 12% share of total sales. The company’s equity as at 31 December 2019 amounted to EUR 2 485 thousand, which is approx. 52% of the asset coverage. The company reported total revenues of EUR 30 353 thousand and a profit of EUR 349 thousand in 2019, a 32% decrease. Pipex Deutschland GmbH Since 2013, Pipex Deutschland GmbH has been taking over customers of PIPEX (International) AG, PIPEX ITALIA S.p.A. and the German agent, RS GmbH, with the objective of increasing the market share in Germany. In 2019, the company reported revenues from the sales of products of Železiarne Podbrezová a.s. totalling EUR 22 689 thousand and a profit of EUR299 thousand. The company’s equity as at 31 December 2019 amounted to EUR 766 thousand, which is approx. 36% of the asset coverage. Transmesa USA, Inc. The Spanish company, TRANSMESA, established a company in 2015 in the US, which serves US customers. In autumn 2017, a processing technology for short tubes was installed in a leased warehouse and the production premises of the company to provide these services in the US. The proximity of customers and own warehouse with a higher number of products increased the flexibility, security and speed of supplies and reduced the cost of transporting TRANSMESA’s products to the US. In early 2019, the installation of the second grinding line was completed, which increased the company’s capacity for its customers. In 2019, the company generated sales revenues totalling EUR 2 876 thousand and reported a profit of EUR 304 thousand. ZANINONI SLOVAKIA, s.r.o. The company’s core business is the provision of forwarding services for the transportation of Železiarne Podbrezová a.s.’s products to all global markets and services for the parent company and subsidiaries. Last year, the company provided services in the total amount of EUR 11 156 thousand and reported a profit after tax of EUR 471 thousand. The company’s equity as at 31 December 2019 amounted to EUR 2 127 thousand, which is almost 69% of the asset coverage. Tále, a.s. Tále, a.s. is a part of the business of Železiarne Podbrezová a.s., which operates in the tourism sector. It operates a sports resort comprising a ski centre, the Gray Bear 18-hole championship golf course and the Little Bear 9-hole training course, which has had night lighting since 2017. The resort includes two hotels, which in addition to the standard services, also provide congress tourism and golf vacation packages. The company regularly invests in upgrading assets and increasing the level of provided services. In 2019, the golf resort enjoyed unchanged attendance by individual clients and over sixty commercial, sport and club tournaments were held. Given the high-quality snowmaking facilities and big slopes, the winter ski centre mainly serves families with children and is also popular with schools and downhill skiing courses. This is good for hotels and restaurants, which are fully booked during the peak season – Christmas and spring holidays. In 2019, the company generated revenues from the sale of merchandise and services amounting to EUR 3 492 thousand, a 2% decrease compared to the previous year. The company incurred a loss of EUR 304 thousand for 2019. As at 31 December 2019, the company’s assets totalled EUR 16 941 thousand, with 93% covered by equity. REPORT BY THE BOARD OF DIRECTORS ON BUSINESS ACTIVITIES, ASSETS AND FINANCIAL PERFORMANCE IN 2019 AND INFORMATION ON THE BUSINESS PLAN