Ελληνικη Τεχνοδομικη Teb Ae Ετησιο 2005 Eng
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ANNUAL REPORT 2005 Athens, June 2006 TABLE OF CONTENTS 1. REPORT OF THE BOARD OF DIRECTORS.............................................................................................7 1.1 OVERVIEW OF ACTIVITIES.............................................................................................................7 1.2 Significant events for the financial year 2005....................................................................................8 1.3 2005 Results and Future Perspectives..............................................................................................9 1.4 Construction ......................................................................................................................................9 1.5 Concessions....................................................................................................................................10 1.6 Environmental Services...................................................................................................................10 1.7 Real Estate......................................................................................................................................11 1.8 FY 2005 Consolidated results and Performance indicators.............................................................11 1.8.1 FY 2005 results......................................................................................................... 11 1.8.2 Performance indicators............................................................................................. 11 1.9 Risks................................................................................................................................................12 1.10 Events after 31.12.2005 ..................................................................................................................13 2. INFORMATION ON THE COMPILATION OF THE ANNUAL REPORT AND THE COMPANY’S AUDITORS.........................................................................................................................................................14 2.1 Information on the compilation of the annual report and the company’s auditors...........................14 2.1.1 Judicial and Arbitrary Proceedings............................................................................ 14 2.2 INFORMATION ABOUT THE COMPANY.......................................................................................16 2.2.1 General Information .................................................................................................. 16 2.2.2 Brief History .............................................................................................................. 17 2.3 INFORMATION ON THE COMPANY’S ACTIVITIES......................................................................18 2.3.1 Object of Activities .................................................................................................... 18 2.4 MAJOR CONTRACTS OF THE COMPANY ...................................................................................22 2.4.1 Service contract of the Company with AKTOR ......................................................... 22 2.4.2 Contract for the construction of building between the Company and AKTOR........... 22 2.4.3 Lease Contract for offices between the Company and AKTOR (1)........................... 23 2.4.4 Lease Contract for offices between the Company and AKTOR (2)........................... 23 2.4.5 Contract between AKTOR and REDS for the execution of construction works......... 23 2.4.6 Contract between AKTOR and REDS for the reconstruction and formation of an area 23 2.4.7 Service Contract between REDS and LOFOS PALLINI............................................ 24 2.4.8 Contract for leasing of offices from ELLINIKI TECHNODOMIKI to REDS................. 24 2.4.9 Contract between REDS and LOFOS PALLINI for the execution of construction works 24 2.4.10 Service contract between REDS and KANTZA EMBORIKI ...................................... 24 2.4.11 Service contract between REDS and YALOU EMPORIKI & TOURISTIKI................ 24 2.5 INVESTMENT PLAN.......................................................................................................................26 2.5.1 Investments in property, plant and equipment .......................................................... 26 2.5.2 Investments in Holdings............................................................................................ 26 2 2.5.3 Investments under development............................................................................... 27 2.5.4 Future investments ................................................................................................... 28 2.6 FIXED ASSETS – FACILITIES.......................................................................................................29 2.6.1 Intangible Assets....................................................................................................... 29 2.6.2 Privately-owned Properties – Building Facilities........................................................ 29 2.6.3 Leased Assets .......................................................................................................... 30 2.6.4 Mechanical Equipment.............................................................................................. 30 2.6.5 Encumbrances against the Fixed Assets of the Group ............................................. 32 2.6.6 Environmental Impact ............................................................................................... 32 2.7 ORGANISATIONAL STRUCTURE .................................................................................................33 34 2.8 INFORMATION ON THE COMPANY’S PARTICIPATIONS............................................................35 2.8.1 AKTOR S.A. (former TRIGONON S.A.).................................................................. 35 2.9 TRANSACTIONS WITH AFFILIATED PARTIES.............................................................................38 2.9.1 Participation of BoD to the Management of other companies ................................... 38 2.9.2 Group Inter-company Transactions 2005.................................................................. 41 2.10 SIGNIFICANT CHANGES IN THE FINANCIAL OR COMMERCIAL STANDING OF THE COMPANY................................................................................................................................................44 2.11 DIVIDEND POLICY .........................................................................................................................45 2.12 ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY BODIES AND HIGHER EXECUTIVES 46 2.12.1 Corporate Governance ............................................................................................. 50 2.12.2 Internal Audit............................................................................................................. 51 2.12.3 Corporate Social Responsibility ................................................................................ 51 2.12.4 Remuneration and Benefits....................................................................................... 53 2.13 ORGANIZATION CHART................................................................................................................54 2.14 Human resources ...........................................................................................................................54 2.15 Share Capital...................................................................................................................................55 2.15.1 Paid-up Share Capital............................................................................................... 55 2.15.2 Share Capital Evolution ............................................................................................ 55 2.16 Shareholders...................................................................................................................................59 2.17 Articles of Association .....................................................................................................................60 2.18 Institutional Framework of Operation of the Company ....................................................................63 3. SHARE SECURITIES NOTE ....................................................................................................................64 3.1 Description of Conversion ...............................................................................................................64 3.1.1 Reasons leading to the Conversion .......................................................................... 64 3.1.2 Conversion Balance Sheet – Book Value Report..................................................... 65 3.1.3 Terms of conversion ................................................................................................. 66 3.2 Information On the Company’s Shares ...........................................................................................68 3.2.1 Shareholders’ Rights................................................................................................. 68 3 3.2.2 Right to Dividend....................................................................................................... 68 3.2.3 Voting Rights............................................................................................................. 68 3.2.4 Preference Rights ....................................................................................................