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Annual Report 2010 50 ANNUAL REPORT 2010 50 2007 45 46.003 40 2006 35 37.594 2008 30 2009 2005 29.442 28.804 25 26.599 2010 23.956 20 15 10 5 Investments (thousand €) 50 45 40 35 30 25 20 2005 15 2006 10.458 10 2007 7.545 2008 5.196 5 2.617 2009 2010 Profit (thousand €) -122 150 annual report 2010 EMA FIRTOVÁ. PADÁ DÁžď Contents Introduction from the General Director PAGE 10 Introduction from the Chairman of the Supervisory Board PAGE 11 Highlighted Events during 2010 PAGE 13 Aims and Goals for 2011 PAGE 17 shareholder structure Company Profile PAGE 19 Company Bodies PAGE 22 OTHER MUNICIPALITIES AND CITIES % Board of Directors PAGE 22 32,28 Supervisory Board PAGE 24 Company Management PAGE 26 Mission Statement and Vision PAGE 28 Main Activities PAGE 29 BVS, A. S. 8,43 % Drinking Water Production and Distribution PAGE 31 Wastewater Collection and Treatment PAGE 39 Lab Activities PAGE 45 Subsidiaries PAGE 49 THE CAPITAL OF SR BRATISLAVA 59,29 % Sector Characteristics in Brief PAGE 59 Our Customers PAGE 63 Price for Producing, Distributing and Delivering Drinking Water and for Collecting and Treating Wastewater PAGE 67 Human Resources PAGE 71 Company in the Media PAGE 77 Customer Care and Marketing Communication PAGE 83 Corporate Responsibility PAGE 87 Waterworks Museum PAGE 91 A Safe Company PAGE 95 Energy Efficiency PAGE 99 BVS and the Environment PAGE 103 water ready for use Information Technology PAGE 107 Investment Construction PAGE 111 BRATISLAVA WATER MAIN 69 % Future Infrastructure Modernisation PAGE 117 Report on Supervisory Board Activities PAGE 122 SENECKÝ WM 6 % Financial part PAGE 125 ZÁHORSKÝ WM 3 % Management Comments on Company _______ Performance and Assets PAGE 126 PODHORSKÝ WM 11 Consolidated Financial Statements PAGE 129 SENICKÝ WM 5 % Complete Balance Sheet PAGE 130 OTHER WATER MAINS 6 % Complete Income Statement PAGE 131 Statement of changes in equity PAGE 132 WM = WATER MAIN Statement of Cash Flows PAGE 133 Notes to the Financial Statements PAGE 134 Comprehensive, three-year financial statements PAGE 178 Independent Auditor's Report PAGE 198 Introduction EVA FABOVÁ. ODRAZ VO VODE 9 Introduction from the General Director From my point of view over the previous year Management is pleased that the transformation of I have tried to ignore everything connected to BVS as a company as well as a group of companies the national and local elections despite the fact is successfully continuing even in the face of these that for our company, with cities and towns as its complicated conditions. The subsidiary Bionergy shareholders, this is practically impossible. When I has successfully completed its first year of exist- forget about all of the unsuccessful and successful ence and it begun to fulfil expectations. attempts to use the issue of Bratislavská vodá- renská spoločnosť (BVS) in order to gain political The decision of company bodies as to the man- points at the expense of a political opponent, I can ner of a capital increase into the subsidiary Infra decisively state that 2010 was a successful year. Services has also proven to be correct despite the fact it generated mainly political and pre-election The events surrounding BVS will amount to a discussion. This was by no means a professional tempest in a teapot over time. This will repeat discussion. A share capital increase in a commer- itself and negatively impact the company as long cial company is one of the least risky and most as the company’s shareholders remain politically commonly used steps to secure needed develop- unstable. ment capital. The success of this and every year must be evalu- Thanks for the active participation in the trans- ated within the framework of what company man- formation of the company and for the results agement is able to control. The economic playing achieved in 2010 belong to all of those who field for the water utility business, however, is shared in them. The changes in company man- defined by the state-controlled Regulation Office. agement and bodies in 2011 announced by the As stated in the 2010 Annual Report, discussed majority shareholder must be perceived as and approved by the general meeting of the a normal and automatic step that always follows company, BVS generated a profit and increased a change in shareholders and in this case a change its assets while increasing work productivity and in the position of the statutory representative of added value. However this only met the basic the majority shareholder. It has the full right to shareholder expectations. do so. Hope remains that the new bodies and executive management will continue to fulfil the The statement made by the statutory company mission and vision of BVS and that management auditor to the financial statements was provided is able to master changes that occur without any with conditions. One condition was basically an negative impact on the company. expression of his opinion as to a state-regulated water utility. Water utilities do not generate suf- ficient funds to even regenerate their own assets as a result of these misconceived regulations. The Ing. Daniel Gemeran auditor expressed his opinion on company earn- Chairman of the Board of Directors ings to all company bodies. Top management has and General Director been of the same opinion for years. 10 Introduction from the Chairman of the Supervisory Board At the end of June, the Board of Directors at BVS The year 2010 was an election year locally and in submitted the company’s 2010 financial statements my opinion it was unfortunate that BVS was used to the general meeting for discussion and approval. as an election topic. Within the election campaign At this time, five members of the Supervisory Board, and after the elections untrue statements regard- including the Chairman, will no longer be members ing BVS were circulated, definitely damaging its of the Supervisory Board as their mandate will expire reputation. Hardworking and honest company on 7 June 2011on the basis of the company articles. employees certainly did not deserve this "publicity" Despite this fact, please allow me to briefly assess for the amount of hard work they put in. the results achieved by BVS from the point of view of the Chairman of the Supervisory Board. Company A future with some challenging tasks, especially in earnings from 2005 to 2010 can be assessed from the terms of wastewater treatment (an obligation from following overview (profit and investments) for these EU accession discussions) awaits and will require years. It is necessary to remember that the company large investments. The need for such investments in these years with the exception of 2009 generated naturally exceeds potential internal funding. a profit and completed investments using internal Assurance of sufficing funding will only be possible funds for reconstruction, modernisation and new with Eurofunds and 20% matching funds financed construction of water and sewer lines, water reser- by loans. As our joint-stock company is a healthy voirs, treatment plants and other structures as follows company with good creditworthiness, we have (see graphs on pages 2-3). received an investment loan at 1.15% + 3 EURI- BOR, which represents a condition that no other From this point of view it is clear the company condition in the Slovak Republic could match. invested a total of €192.398 million of inter- nal funds during this period. This high level of In concluding my introduction, please allow me in investment was only possible thanks to the fact the name of the entire Supervisory Board to thank the shareholders of the company, upon a proposal all company employees for the quality work they from the shareholder, the Capital City of Bratislava, completed in 2010. At the same time please allow concluded an agreement to not pay dividends me to express my conviction that company share- or royalties and agreed that all profits including holders will remain cities and towns in the future depreciation would be invested. The company and that new management will be successful in increased its internal infrastructure and its assets the future improvements of the company. increased by more than €66.388 million. Since its I wish all employees and new management a great establishment, the company has decreased, with deal of success in the future and much health and the planned volume of water production, sewer happiness in their personal lives. collection and treatment, the number of employ- ees and achieved higher labour productivity. BVS was given a rating of AA2 rating from Moody's, an international ratings agency, which is the highest Ing. Karol Kolada rating for a company in Slovakia. For this reason it Chairman of the Supervisory Board is more than clear that BVS is a healthy company. 11 Highlighted Events during 2010 LÍVIA ORLOVSKÁ. ZLATÝ DÁžď 13 Najvýznamnejšie udalosti roka 2010 podľa mesiacov 12 1 12 1 12 1 2 2 2 11 11 11 3 3 3 10 10 10 4 4 4 9 9 9 JANUARY FEBRUARY MARCH 5 5 5 8 8 8 6 6 6 7 7 7 7th anniversary of establishment of BVS 124th anniversary of the establishment Free to the public analysis of water samples New system for assuring water hygiene of the city waterworks in Bratislava from wells for nitrates and total water hard- using sodium hypochlorite in the place ness in commemoration of World Water Day of chlorine gas is placed into operation End of the 2nd phase of the Small Carpathian Region Sewer project (connecting sewer lines from Pezinok to the treatment plant in Vrakuňa) 12 1 12 1 12 1 2 2 2 11 11 11 3 3 3 10 10 10 4 4 4 9 9 9 APRIL MAY JUNE 5 5 5 8 8 8 6 6 6 7 7 7 Bratislava
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