Dividends in 2023

Announcement on distribution of dividends

Dear shareholders!

Annual General Meeting of shareholders of Železiarne Podbrezová a.s. on 26 June 2023 decided that the right to the dividend from retained earnings of previous years, in the total gross amount of EUR 2.00 per share, have all persons who were the owners of the Železiarne Podbrezová a.s. shares as of 3 July 2023 (the record date). Dividends are payable within 60 days of the record date and will be paid at the Company's expense.  

The payment of dividends to shareholders will be held as follows: 

a) NATURAL PERSONS - by means of bank transfer to the shareholder’s bank account, by check order of 365.bank, a.s. (Poštová banka) sent to the shareholder's address, or by cash withdrawal at the cash desk of the Company. 

In order to correctly determine the withholding tax on dividends, a shareholder who is a tax resident of a country other than Slovakia (does not have a permanent residence in Slovakia or does not usually stay in Slovakia) is obliged to send a certificate of tax residence (from the local tax office) to the Company, by 11 August, 2023 at the latest. If the Company will not be able to prove the tax residence of the shareholder, it will be obliged to withhold tax on dividends at a higher tax rate (35%). For faster delivery, the shareholder can send the confirmation in advance electronically - to our e-mail address (and later deliver the original to the postal address). 

For the payment of dividends by bank transfer it is necessary for the shareholder to notify their bank account to the Company. Bank account notification for the payment of dividends shall include name, surname, domicile, personal identification number or date of birth of the shareholder, bank account number (IBAN code) to which the dividends are to be transferred, and the shareholder's consent to the processing of their personal data (the request template). The signature of the shareholder must be authenticated. The signature of the shareholder must be authenticated. If the shareholder has previously asked for a dividend to be sent to a bank account, there is no need to repeat the request. 

If the shareholder requests the payment of dividends in cash at the cash desk of the Company, it is necessary to make an appointment in advance at the Capital management department.  

If the shareholder does not require payment of dividends by means of bank transfer or in cash at the cash desk, the Company will send them dividends automatically by check order of 365.bank, a.s. (Poštová banka). 

b) LEGAL ENTITIES - by means of bank transfer to the shareholder’s bank account. It is necessary to submit the following:
- a request for the payment of dividends, indicating the exact specification of the applicant (business name, registered office, company identification number, registration number in the Business registry), bank account number and contact person. The request must be signed by an authorised representative with an authenticated signature;
- an original or a certified copy of the up-to-date extract from the Business registry (not older than three months). 

In the case of representation, it is necessary, in addition to the above-mentioned documents, to submit a power of attorney with an authenticated signature of the shareholder (the principal).  

The Company is obligated to pay dividends within 60 days from the record date, i.e. by 1 September 2023. 

According to Act no. 595/2003 Coll. on income tax as amended:

Dividends from retained earnings for 2004-2010 (EUR 0.45 per share) are not subject to income tax.  

Dividends from retained earnings for 1995-2003 (EUR 1.55 per share) are subject to tax.
In selected cases, the Company is obliged to withhold tax in the amount of:
- 7% for a natural person - a taxpayer with unlimited tax liability in the Slovak Republic (resident of SR) and a taxpayer with limited tax liability (non-resident of SR) with tax residence in another state with which the Slovak Republic has concluded an international treaty on the avoidance of double taxation;
- 35% for a natural person and a legal entity - a taxpayer with limited tax liability (non-resident of SR) with tax residence in a state with which the Slovak Republic has not concluded an international treaty on the avoidance of double taxation, or a taxpayer for whom the Company cannot prove the ultimate beneficiary of dividend income or does not have relevant information about the ultimate beneficiary of dividend income. 

If the shareholder is not the ultimate beneficiary of dividend income, they are obliged to notify the Company of this fact and to indicate the identity and tax residence of the ultimate beneficiary of dividends. 

Dividends from retained earnings for 1995-2010 are not subject to the public health insurance premiums (according to Act No. 580/2004 Coll. on Health Insurance as amended). 

In the event that the shareholder's data has changed (e.g. surname, residence, etc.) or there has been a change in the person of the shareholder (e.g. due to inheritance, donation, sale of shares), we kindly request shareholders to notify the relevant change and attach the original or an officially certified copy of the relevant document (e.g. marriage certificate proving a change of surname, resolution on the inheritance of shares, etc.). 

In the event that the right to a dividend has been transferred in accordance with § 178 par. 2 of Act No. 513/1991 Coll. - the Commercial Code, the person exercising the right to pay the dividend shall prove it with the original of the agreement or another document proving the right to pay the dividend. 

Documents which will be presented by shareholders should be sent to the company’s address (Department of capital management), or presented in person at the registered office of the Company. 

We kindly request shareholders to include their telephone number or e-mail address in their correspondence, for the purpose of effective communication in solving any ambiguities.