Annual Financial Report
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ANNUAL FINANCIAL REPORT For the Period from January 1, 2018 to December 31, 2018 In accordance with IFRS & Law 3556/2007 Athens Water Supply & Sewerage Company S.A. G.E.MI. (GREECE’S GENERAL ELECTRONIC COMMERCIAL REGISTRY) NUMBER 121578960000 156 OROPOU STR GALATSI ATHENS, GREECE Annual Financial Report Financial Year 01.01.2018 – 31.12.2018 Annual Financial Report For the Period from January 1, 2018 to December 31, 2018 The attached Annual Financial Report has been compiled according to Law 2190/1920 and Law 3556/2007 as amended and currently in force and its relevant decisions of the Board of Directors of Hellenic Capital Market Commission, and includes: a) Statements of members of the Board of Directors according to article 4 paragraph 2, L. 3556/2007 b) Annual Board of Directors Management Report, including the Corporate Governance Statement c) Non‐Financial Statement Based on Law 4403 / 07.07.2016 d) Annual Financial Statements for the period from January 1, 2018 to December 31, 2018 e) Independent Auditors’ Report f) Information according to article 10 of Law 3401/2005 g) Financial Data and Information for the period from January 1, 2018 to December 31, 2018 It is declared that the attached Annual Financial Report is the one that has been approved by the Board of Directors of “Athens Water Supply & Sewerage Company S.A.” on April 5th, 2019 and is available at company’s official website www.eydap.gr . 1 Annual Financial Report Financial Year 01.01.2018 – 31.12.2018 INDEX STATEMENTS OF MEMBERS OF THE BOARD OF DIRECTORS ................................................................................................... 4 ANNUAL BOARD OF DIRECTORS MANAGEMENT REPORT ...................................................................................................... 5 ANNUAL FINANCIAL STATEMENTS ..................................................................................................................................... 114 GENERAL INFORMATION FOR THE COMPANY .......................................................................................................................... 116 STATEMENT OF INCOME FOR THE FINANCIAL YEARS ENDED ON 31ST DECEMBER 2018 & 2017 ............................................. 117 STATEMENT OF TOTAL COMPREHENSIVE INCOME FOR FINANCIAL YEARS ENDED ON 31ST DECEMBER 2018 & 2017 ............ 117 STATEMENT OF FINANCIAL POSITION OF 31ST DECEMBER 2018 & 2017 ................................................................................. 118 STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY 1ST JANUARY – 31ST DECEMBER 2018 & 2017 ................................... 119 CASH FLOW STATEMENTS OF 1ST JANUARY ‐ 31ST DECEMBER 2018 & 2017 ........................................................................... 121 NOTES ON THE ANNUAL FINANCIAL STATEMENTS OF 31ST DECEMBER 2018 .......................................................................... 122 1. ESTABLISHMENT, BUSINESS ACTIVITY AND LEGAL FRAMEWORK OF THE COMPANY .................................................. 122 2. NEW STANDARDS, INTERPRETATIONS AND AMENDMENT OF EXISTING STANDARDS ................................................ 125 3. SIGNIFICANT ACCOUNTING POLICIES ........................................................................................................................... 128 4. CRITICAL ACCOUNTING TREATMENTS AND IMPORTANT SOURCES OF ESTIMATION OF UNCERTAINTITIES ............... 138 5. REVENUES ..................................................................................................................................................................... 139 6. ALLOCATION OF THE ITEMS OF THE STATEMENT OF INCOME PER CATEGORY OF EXPENSES ..................................... 139 7. DEPRECIATION EXPENSES ............................................................................................................................................. 142 8. PERSONNEL FEES & EXPENSES (GROUP & COMPANY) ................................................................................................. 143 9. FINANCIAL INCOME (GROUP & COMPANY) ................................................................................................................. 143 10. FINANCIAL EXPENSES (GROUP & COMPANY) ........................................................................................................... 143 11. INCOME TAX ............................................................................................................................................................. 143 12. EARNINGS PER SHARE .............................................................................................................................................. 145 13. GOODWILL ................................................................................................................................................................ 145 14. OTHER INTANGIBLES ASSETS (GROUP & COMPANY) ............................................................................................... 146 15. TANGIBLE ASSETS ..................................................................................................................................................... 147 16. INVESTMENTS IN SUBSIDIARIES ............................................................................................................................... 148 17. FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH THE OTHER COMPREHENSIVE INCOME ....................... 148 18. LONG‐TERM RECEIVABLES (GROUP & COMPANY) ................................................................................................... 149 19. DEFERRED TAX RECEIVABLE (GROUP & COMPANY) ................................................................................................. 149 20. MATERIALS, SPARE PARTS & CONCUMABLES (GROUP & COMPANY) ...................................................................... 150 21. RECEIVABLES FROM CUSTOMERS, CONTRACTUAL ASSETS (GROUP & COMPANY) .................................................. 150 22. OTHER RECEIVABLES (GROUP & COMPANY) ............................................................................................................ 153 23. CASH AND CASH EQUIVALENTS ................................................................................................................................ 155 24. SHARE CAPITAL ......................................................................................................................................................... 155 25. RESERVES .................................................................................................................................................................. 156 26. RETAINED EARNINGS ................................................................................................................................................ 156 27. LIABILITIES FOR EMPLOYEE BENEFITS (GROUP & COMPANY) .................................................................................. 157 28. PROVISIONS FOR PENDING LITIGATIONS (GROUP & COMPANY) ............................................................................. 165 29. INVESTMENT SUBSIDIES (GROUP AND COMPANY) .................................................................................................. 165 30. CONSUMERS’ GUARANTEES ..................................................................................................................................... 166 31. OPERATING AND OTHER CURRENT LIABILITIES ........................................................................................................ 166 32. EVENTS AFTER THE BALANCE SHEET DATE ............................................................................................................... 167 33. COMMITMENTS AND CONTINGENT LIABILITIES – ASSETS ....................................................................................... 167 34. RELATED PARTY TRANSACTIONS (GROUP & COMPANY) .......................................................................................... 169 35. AUDITORS’ REMUNERATION .................................................................................................................................... 170 36. EYDAP FIXED ASSETS «EYDAP L.E.P.L.» ..................................................................................................................... 170 37. MANAGEMENT OF CAPITAL ..................................................................................................................................... 170 38. FINANCIAL RISK MANAGEMENT ............................................................................................................................... 171 39. FAIR VALUE ASSESSMENT ......................................................................................................................................... 175 2 Annual Financial Report Financial Year 01.01.2018 – 31.12.2018 40. IFRS 9 FINANCIAL INSTRUMENTS ............................................................................................................................. 175 41. IFRS 15 REVENUES FROM CONTRACTS WITH CUSTOMERS – IMPACT OF ADOPTION .............................................. 180 INDEPENDENT AUDITOR’S REPORT ................................................................................................................................... 184 CORPORATE ANNOUNCEMENTS – RELEASES 2018 ............................................................................................................. 190 DATA & INFORMATION ....................................................................................................................................................