Annual report 2019

3 Železiarne Podbrezová a.s.: ANNUAL REPORT 2019 INTRODUCTION OF THE CHAIRMAN OF THE BOARD OF DIRECTORS In 2019, there were two fundamentally different halves. In the first half of 2019, we had enough orders and relatively good prices, in contrast, the second half of the year was difficult. This difficult period continued in early 2020. I would like to thank all our customers, suppliers and other business partners for maintaining correct relationships. I would like to emphasise that Železiarne Podbrezová a.s. has retained good clients over the long term, which is reflected in better as well as worse times. In 2019, we did not experience any problems with financing our production and I believe that the employee wage growth was adequate. I wish I could say the same about 2020. Dear Shareholders, It would be of great benefit if the EU development programmes included metallurgy. It is my belief that they do not understand the blast furnace and electric arc furnace production process. Given the development of metallurgy in the world, it is necessary to invest in upgrades. Unless the European Union invests in industrial production, the gap will widen significantly. The share of the European Union of research and development, and of patents is minimal. These figures are also declining in the USA, but they are growing in China. It is unfortunate for the European Union that, with the new European Commission, climate targets are expected to tighten to 55% by 2030 and carbon neutrality is planned by 2050. This does not take into consideration its share of air pollution relative to the world, including the US and China. Those are meaningless, unattainable goals. Dear Shareholders, Our primary task for the future is to market high- quality products and service for our customers. It is very important for us to maintain good relationships with our business partners. If we want our company to develop, we must closely monitor labour productivity and production costs. I would like to thank everyone who contributed to the 2019 results of operations and our graduates who joined the Company. I look forward to seeing more graduates this year. This is the only way to secure high-quality employees for our Company in the future. Our teachers and our employees who participate in student training also play a significant role in this respect. I wish you all good health, every personal and professional success and good cooperation in the future. Let’s be glad we are able to work! Ing. Vladimír Soták Chairman of the Board of Directors and Chief Executive Officer