OPERATING HIGHLIGHTS IN 2010 1
I draw energy from here.
ANNUAL REPORT 2010
ANNUAL REPORT 2010 Elektro Ljubljana d.d. 2 OPERATING HIGHLIGHTS IN 2010 OPERATING HIGHLIGHTS IN 2010 3
Positive Energy Networking
Annual Report
FOR THE YEAR 2010
LJUBLJANA, MARCH 2011
ANNUAL REPORT 2010 Elektro Ljubljana d.d. ANNUAL REPORT 2010 Elektro Ljubljana d.d. 4 OPERATING HIGHLIGHTS IN 2010 CONTENTS 5
C O N T E N T S
Operating Highlights in 2010...... 8 Important Events in 2010...... 10 Main Goals in 2011...... 12 Management Board Report...... 14 Report of the Chairman of the Supervisory Board...... 16
1. GENERAL INFORMATION ...... 19 1.1. Company Profile...... 20 1.2. Organisation and Activities of the Company...... 20 1.3. Management...... 22 1.4. The Supervisory Board...... 23 1.5. Corporate Governance...... 23
2. BUSINESS REPORT...... 25 2.1. Mission and Vision...... 26 2.2 General Operating Conditions...... 26 2.3. Distribution of Electricity...... 32 2.4. Sale of Electricity...... 40 2.5. Other Services...... 44 2.6. Marketing...... 46 2.7. Performance Analysis...... 48 2.8. Financial Property Position...... 51 2.9. Risk Management...... 57 2.10. Investments...... 62 2.11. Information Technology...... 66 2.12. Quality Management...... 67 2.13. Planning and Development...... 70 2.14. Information for Shareholders...... 72 2.15. Significant Events after the end of the Business Year...... 73
3. CORPORATE SOCIAL RESPONSIBILITY...... 75 3.1. Concern for Employees...... 76 3.2. Concern for other Publics ...... 81 3.3. Concern for the Environment ...... 82 3.4. Communication with Stakeholders...... 86
4. AUDITOR’S REPORT...... 90
5. FINANCIAL REPORT...... 92
ANNEX List of Abbreviations and Symbols ...... 124
ANNUAL REPORT 2010 Elektro Ljubljana d.d. ANNUAL REPORT 2010 Elektro Ljubljana d.d. 6 OPERATING HIGHLIGHTS IN 2010 OPERATING HIGHLIGHTS IN 2010 7
Foreword
I hear my body. I know my limits. And I know I can shift them. I can be better than myself. This gives me power. It gives me desire. I draw energy from here.
ANNUAL REPORT 2010 Elektro Ljubljana d.d. ANNUAL REPORT 2010 Elektro Ljubljana d.d. 8 OPERATING HIGHLIGHTS IN 2010 OPERATING HIGHLIGHTS IN 2010 9
NET SALES REVENUES (EUR THOUSAND) NET PROFIT OR LOSS (EUR THOUSAND) Operating Highlights in 2010 NET SALES REVENUES/EMPLOYEE* (EUR THOUSAND) NET PROFIT MARGIN (%)
267,630 267,225 263,931 282,880 271,911 9,238 1,114 160 977 1,348
2006 2007 2008 2009 2010
Net sales revenues (EUR) 267,629,540 267,224,600 263,930,813 282,880,411 271,911,381 272 269 259 273 268 chain index — 99.8 98.8 107.2 96.1
Net profit or loss (EUR) 9,238,145 1,114,185 160,369 976,786 1,347,772
chain index — 12.1 14.4 609.1 138.0
EBIT (EUR) 7,034,543 838,545 7,568,049 2,294,692 4,570,743 3.5% 0.4% 0,1% 0.3% 0.5% chain index — 11.9 902.5 30.3 199.2
Value added (EUR) 53,780,825 48,310,347 60,126,808 57,158,258 60,324,985
chain index — 89.8 124.5 95.1 105.5
Investments (EUR) 41,893,040 42,200,842 45,517,557 47,524,310 23,011,282
chain index — 100.7 107.9 104.4 48.4 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 Electricity intake (v MWh) 3,945,427 4,052,875 4,136,255 4,036,156 4,169,039
chain index — 102.7 102.1 97.6 103.3
Number of customers 309,155 315,945 320,639 323,997 326,520
chain index — 102.2 101.5 101.0 100.8 VALUE ADDED (EUR THOUSAND) INVESTMENTS (EUR THOUSAND) VALUE ADDED/EMPLOYEE* (EUR THOUSAND) INVESTMENTS/NET SALES REVENUES (%) Number of employees as at 979 1,004 1,027 1,028 984 31 December
chain index — 102.6 102.3 100.1 95.7 53,781 48,310 60,127 57,158 60,325 41,893 42,201 45,518 47,524 23,011 Total assets as at 381,258,922 412,776,591 446,204,740 480,542,867 488,074,304 31 December (EUR) 15.7% 15.8% 17.2% 16.8% 8.5% chain index — 108.3 108.1 107.7 101.6 54.7 48.7 59.1 55.2 59.6 Equity as at 261,078,788 260,626,562 260,595,960 261,758,876 262,963,562 31 December (EUR)
chain index — 99.8 100.0 100.4 100.5
Book value per share as at 6.67 6.66 6.65 6.68 6.72 31 December (EUR)
chain index — 99.9 99.9 100.4 100.5
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
*Calculated from average number of employees
ANNUAL REPORT 2010 Elektro Ljubljana d.d. ANNUAL REPORT 2010 Elektro Ljubljana d.d. 10 IMPORTANT EVENTS IN 2010 IMPORTANT EVENTS IN 2010 11
Important Events in 2010
Appointment of the President of the Board of Directors of Elektro six charging stations in CML, which were officially opened by the opening of the charge On 23 September Ljubljana point on the Miklošičeva cesta. All charge points are supplied by the Green Energy of 2010, the President of Based on the public tender for the appointment of the President of the Board of Elektro Ljubljana. By opening the charge points, the Company followed the needs of the Board of Directors, Directors of Elektro Ljubljana, the Supervisory Board, at its session on 4 February its consumers and development directions, since charge points for the electricity-driven together with the 2010, first appointed Mr Andrej Ribič as of 23 March 2010. vehicles represent a new direction in the exploitation of renewable sources. Vice-Mayor of the City Municipality The First Successful Application of the Temporary Quick- Return of the Overcharged Electricity Consumption of Ljubljana (CML), Installation Long-Distance Transmission HV-Pillar According to decisions of the Competition Protection Office of the Republic of Slovenia opened up the first In 2009, Elektro Ljubljana decided to purchase quick-installation 110 kV pillars, and of the Supreme Court of the Republic of Slovenia, the company returned the public electric-vehicle which are completely new in the Slovenian territory. This decision was mostly based overcharged electricity consumption to the household customers, who were our buyers charge point on the on the need to eliminate the consequences of breakdowns on the 110 kV network, in the period from 1 January 2008 to 31 October 2008. The returns were realised by CML territory. as quickly as possible. The workers successfully put up the first incidental pillar on credit notes, which also included the statutory default interests. The customers received 5 February 2010 in very difficult weather conditions on the 110 kV long-distance credit notes in the period between 10 September 2010 and 20 September 2010. transmission Hudo-Kočevje. In 2010, the incidental pillars were also used at the overhaul of connecting power-line pillars for the RTP Vič. Fast and Successful Intervention in the Flood Water Disaster On the 18th and 19th of September 2010, the area supplied with electricity by the World Energy Saving Day Elektro Ljubljana, was heavily affected. Upon requests of customers and fire squads, At the event of the At the event of the World Energy Saving Day, experts of Elektro Ljubljana, on Friday the low voltage outages and transformer substations were being shut down as a preventive World Energy Saving 5th of March 2010 in the Information Office of the Company and on Saturday the 6th of measure. The most transformer stations – as many as 36 – were shut down on a Day, experts of Elektro March 2010 in the Prešeren Square in Ljubljana, advised the passers on the efficient use Sunday, the 19th of September 2010. More than 3,000 customers remained without Ljubljana, in the of energy. They made a practical demonstration of measuring the electricity consumption electricity. The damage caused to the distribution network was estimated to 600,000 Prešeren Square in of different appliances and options of monitoring our own electricity consumption. EUR. Numerous devices on the MV and LV level were also damaged. The Elektro Ljubljana, advised the Ljubljana teams intervened quickly and successfully. passers on the efficient World Earth Day use of energy. At the event of the World Earth Day on 22 April 2010, the Company organised it Procuration in Elektro Ljubljana traditional 16th Elektro Evening titled Earth Has a Heart. In the first part, the Company The Supervisory Board of Elektro Ljubljana gave consent on the award of procuration, experts presented to the guests, the activities of Elektro Ljubljana, undertaken in the effort on its November 18th regular session. Branko Ogorevc was appointed for the to preserve the environment by production of electricity from renewable sources and Company’s procurator. facilitation of efficient electricity use. This was followed by a literary evening, hosting the Jasa Association with their book series titled »Onežimo svet«, a renowned Slovenian New Service for Households – Save With Us writer Milan Dekleva and students of the Conservatory of Music and Ballet Ljubljana. A new service for households was launched in December 2010. Save With Us is a new service of Elektro Ljubljana, intended for the household customers. The service European Sustainable Energy Week subscribers have a change to save money by switching the use of electricity from the In the European Sustainable Energy Week from 22 March to 26 March 2010, we higher tariff period to the lower tariff period. The switching is provided by Elektro organised a lecture titled Solar Energy - Energy of the Future. The lecture, organised by Ljubljana. The annual saving is estimated to the amount of one monthly electricity bill. the Center Evropa Ljubljana was prepared by the Zoja Association and Elektro Ljubljana with short descriptions and pictures of different methods of use and installations of Giving the Award for the Best Permanent Improvement and the photovoltaic modules, installed in the energy structures by the Elektro Ljubljana experts. Best Technical Solution in the Company for the Year of 2009 On the 7th of December 2010, an award for the best permanent improvement was The First Electric Charge Point of Elektro Ljubljana given to the group of proposers Bogdan Stanišič, Tomaž Dolenc, Matjaž Drolec and On 23 September 2010, the President of the Board of Directors, together with the Vice- Božidar Majcen, for the proposal of Setting Up a New Spatial Informational System in Mayor of the City Municipality of Ljubljana (CML), opened up the first public electric- Elektro Ljubljana. An award for the best technical solution went to Tomaž Pungartnik vehicle charge point on the CML territory. The charge point is a part of an ensemble of for the proposal Temporary Quick Installation Long-distance Transmission HV pillar.
ANNUAL REPORT 2010 Elektro Ljubljana d.d. ANNUAL REPORT 2010 Elektro Ljubljana d.d. 12 MAIN GOALS IN 2011 MAIN GOALS IN 2011 13
Main Goals in 2011
• providing reliable and quality supply of electricity to customers, sufficient capacity of • developing and forming new products and increasing the market share on the field the network for connecting new users and appropriate quality of electricity to all users; of the investment engineering services;
• transferring the activities of buying and selling electricity to the subsidiary, • active inclusion into the electricity production from renewable energy sources, according to the orientation of the majority owner and the Company strategy; with the intention to preserve and protect the environment;
• adopting the risk management policy in the field of electricity purchases and sales; • optimising the quality system in the sense of decreasing the range of organisational rules and instructions and introducing programmes for the increase of efficiency on • continuing with the expansion of the portfolio of partners from the wholesale individual work fields; market and starting to actively appear on the Southpool and EEX exchanges and the bilateral market OTC, with the intention to seize business opportunities at • continuing with the renewal of the existing integrated informational system and acceptable risks and to achieve better competitiveness on the retail market; starting with the introduction of the new business informational system;
• establishing a loyalty scheme, developing and introducing new electricity products • establishing a learning centre, facilitating the transfer of internal knowledge from for final consumers, with the intention to retain as many existing retail consumers all levels to employees and acquisition of European funds for the projects from the as possible and expanding sales activities for the acquisition of new ones; field of employee development;
• optimising processes with the CRM system at the sale to the household customers, • decreasing the number of employees and replacing deficits with internal transfers; recovery and management of the cash flow; • systematically notifying internal and external publics on the business operation • actively acquiring new sources of financing of the infrastructural, development and and services of the Company, preserving and increasing the Company’s reputation, services projects and seeking new business opportunities on the field of electricity developing social responsibility by different projects and increasing the Company’s distribution; visibility on its field of operation.
• developing and supplying new products, related to the efficient use of energy and useful solutions for the final consumers from the implemented systems Smart Grids;
ANNUAL REPORT 2010 Elektro Ljubljana d.d. ANNUAL REPORT 2010 Elektro Ljubljana d.d. 14 MANAGEMENT BOARD REPORT MANAGEMENT BOARD REPORT 15
Management Board Report • the first successful use of the temporary quick-installation long-distance trans mission HV pillar, which enables rapid elimination of the consequences of breakdowns on the 110 kV network. For Elektro Ljubljana, the year of 2010 was marked by the continuing provision of reliable and safe supply of electricity, investments into the electricity network, The value of the investments planned for the 2010, after the amending business plan elimination of damages on the structures and infrastructure, caused by natural disasters, adopted in October, amounted to 24.4 million EUR, whereas the realisation amounted providing alternative sources of electricity and introduction of new products, mostly to over 23 million EUR, namely 94.3% of the plan. Compared to the previous year, from the field of economic energy use. the investments in 2010 were half lower. The decreased volume of investment funds only enabled the construction of individual structures for connecting new users, limited Elektro Ljubljana d.d. concluded the year of 2010 with a net profit in the amount participation in certain joint reconstructions of municipal and traffic infrastructure and of 1,347.8 thousand EUR, which exceeded the one of the previous year for 38%, most urgent investments into the reconstruction of decrepit network. At the construction whereby the profit before tax in 2010 was on the same level as in the previous year. of structures for connecting new users, we had to limit ourselves only to those structures, where the participation of foreign investors in the financing of the distribution network The sale of electricity in 2010 amounted to 3,466.6 GWh of electricity, thereby 1,073.8 construction was already previously agreed by a contract, whereby the investors provided GWh on the account of the household customers. Compared to the planned sale for the connection of their structures in time. We were forced to reject the requests of other 2010, the realisation was higher for 0.3%, whereas in relation to the total sale in 2009, investors in writing, whereby be informed them of insufficient funds and planned it was lower for 3%. method of solving this problem in the cooperation with SODO. According to the given President of the situation and final construction stage of their structures, some investors had to take over Management Board At Elektro Ljubljana, we are aware that satisfied customers and buyers of our services the total cost of the distribution network construction and arrange their relationship with Andrej Ribič are our main competitive advantage. In 2010, the growth of the Company’s other SODO, prior to the connection. In these cases, we tried to provide minimal funds for market activities increased, mostly due to the supply of services from the field of the construction and financing of at least MV power cable conduits, whereby we tried renewable energy sources, which were not marketed in the previous years. Thereby, to maintain a uniform ownership of the MV network. The lack of funds also forced us the market share of foreign services decreased, such as clearings of transmission line to withdrawal from some joint constructions of the municipal and traffic infrastructure, routes, readings, installation of additional counter sets for the remote collection of namely to significantly decrease the volume of the anticipated construction. data, since we performed these works with our own staff. At Elektro Ljubljana, we are still aware of the importance and advantages of In 2010, the business operation of Elektro Ljubljana d.d. was most notably marked by: establishing operations in accordance with the principles of best practice, and • the global economic crisis, which caused a significant drop in investments and also following established standards. Four of our business areas are governed in a affected the movement of wholesale prices, increase of quantitative and price risks standardised manner, according to ISO standards: the ISO 9001 Quality Management in the purchase and sale of electricity, increased number of insolvency proceedings System, the ISO 14001 Environmental Management System, the OHSAS 18001 and thereby related increased amount of payment disorder; Occupational Health and Safety Management System and the ISO 27001 Information • launching the initial phase of transferring the activity of electricity purchases and Security Management System. Also in 2010, an external compliance assessment sales to a new company, with the purpose of separating the network and marketing was carried out of the implementation, maintenance and development of quality activities as required by law and the Court of Audit of the Republic of Slovenia; management systems. The main finding of the assessment was that the Company has • conclusion of the procedure of determining potential violations of the Prevention of an appropriate quality management system that meets all the required standards. All the Restriction of Competition Act, initiated by the Competition Protection Office recommendations that we received represent an incentive for further work and the against Elektro Ljubljana and returning the overcharged electricity consumption to development of our integrated quality management system. the household customers; • opening the first charge point for electric vehicles in the area of the City Municipality I would therefore like to sincerely thank my colleagues for their contribution to of Ljubljana; by opening six charging points, the Company followed the needs of achieving our set goals. I would also like to thank the members of the Supervisory its customers and development directions, in the spirit of promoting development Board for their support in our Company’s further development, and their professional and exploitation of renewable energy sources; and active role in the monitoring of our Company’s business operation. • in September, the area supplied with electricity by the Elektro Ljubljana, was heavily affected by the flood water disaster; the damage caused to the distribution network was estimated to 600,000 EUR; the employees of Elektro Ljubljana intervened quickly and successfully; President of the Management Board Andrej Ribič
ANNUAL REPORT 2010 Elektro Ljubljana d.d. ANNUAL REPORT 2010 Elektro Ljubljana d.d. 16 REPORT OF THE CHAIRMAN OF THE SUPERVISORY BOARD REPORT OF THE CHAIRMAN OF THE SUPERVISORY BOARD 17
Report of the Chairman contracts, related to the new office building and with the information on the process of purchasing quarters for RTP PCL. It gave consent to the Annexes nos. 2 and 3 to of the Supervisory Board the Contract on the Lease of Electro Distribution Infrastructure and Performance of Services for the System Operator of the Distribution Electricity Network, and to the futures agreements for 2011, 2012 and 2013. It was also acquainted with the Annual In 2010, the Supervisory Board operated in the following composition: Andrej Report for 2009 of the subsidiary MHE d.o.o. and its Business Plan for 2010. The Šušteršič, MSc - Chairman, Ph.D. Marjan Rekar, - Deputy Chairman, Jasna Kalšek, Management Board was instructed to prepare the Business Plan of the subsidiary Aleš Šaver and Employees Representatives, Egon Hoda and Mitja Fabjan. It convened so that the costs shall be realistically evaluated. The Supervisory Board was also on 16 regular sessions, 1 correspondence session and 1 irregular session. acquainted with the Annual Report of the company Informatika d.d.
Within its authority and competence, the Supervisory Board supervised and monitored Due to the anticipated reorganisation, elimination of poor liquidity and reasons the operations of Elektro Ljubljana d.d., focusing mainly on the Company’s business and thereof, the Supervisory Board gave its consent to the Management Board for the financial development, and on realisation of strategic and general business orientations. appointment of the procurator, Branko Ogorevc.
The Supervisory Board, on its 8th regular session on 4 February 2010, appointed the The Supervisory Board was also acquainted with the transfer of activities of electricity new President of the Management Board, Andrej Ribič. purchases and sales and gave its consent to the continuation of the process, according to the presented plan as well as to the appointment of the establishment and division auditor. Chairman of the On its regular session in April, the Supervisory Board adopted a business plan for 2010 Supervisory Board and an amending business plan for 2010, on its October regular session. With a view On its irregular session, the Supervisory Board adopted Rules for Laying Down Other Andrej Šušteršič, Msc to ensuring smooth operations of the Company, it also gave its consent for obtaining Rights of the Management Board at the Conclusion of Employment Contracts, Civil- long-term loans to finance investments and enable business continuity. The Board Law Contracts and Annexes Thereto, according to Article 6 of the Act Regulating approved the revised Annual Report for 2009 with the distribution of profits and gave the Incomes of Managers of Companies owned by the Republic of Slovenia and positive opinion on the Auditor’s Report for 2009 and accepted the proposal on the Municipalities and complied the employment contract of the President of the distribution of net profits for the financial year. The Supervisory Board attributed a Management Board with these Rules. special attention to the poor liquidity of the Company and pointed out the negative cash flow and suggested a number of measures for the rationalisation of operations and On the June regular session, the Supervisory Board discussed the material for the instructed the Management Board to prepare a proposal of measures for the decrease 15th regular session of the Shareholder’s Meeting and adopted the information on its of costs. It emphasised several times that the relationship between costs and revenues convocation. It also discussed its Rules of Procedure and adopted amendments and is non-transparent. A contract on the implementation of detailed inspection was signed. supplements thereto. Its findings were presented on the September regular session. The problem of both, the short-term and the long-term loans was emphasised as well as the problem of maturity According to its competences, the Supervisory Board got acquainted with the legal and clear cash flow and the growing negative balance on the market side. Less money opinion on the justifiability of claims for the overcharged electricity consumption. is intended for investments; therefore, the attention was devoted to full employment of It adopted a decision that the overpaid electricity consumption shall be returned to workers and preparation of the appropriate human resources management plan. customers by means of credit notes in the overpaid amount, together with the statutory default interests. It also discussed the report on the assessment of the possibility of The Board was acquainted with the initiated and inactivated investments and realisation of payment in relation to taxes. the investment plan and adopted a decision that investment documentation must be sub mitted for all investments above a certain value, which must show an economic justifiability On one of its last sessions, the Supervisory Board was also acquainted with the of the project. It was also acquainted with the operationally unnecessary real estates and strategic directions of renewing the integrated informational system and appointed based on the report on the occupancy of vacation capacities; the Board gave its consent one of its members for the task of monitoring. The last session was devoted to the for the sale of certain real estates. The Supervisory Board suggested to the Management discussion of orientations for the creation of the Business Plan for 2011. Board that Elektro Ljubljana should withdrawal from GIZ, after the settlement of mutual obligations. It was also acquainted with reports on electricity purchases and sales.
Due to the difficult liquidity and economic situation, the Supervisory Board was monthly acquainted with liquidity reports and suggested appropriate measures. In Chairman of the Supervisory Board 2010, the Supervisory Board was acquainted with the legal opinion on concluded Andrej Šušteršič, Msc
ANNUAL REPORT 2010 Elektro Ljubljana d.d. ANNUAL REPORT 2010 Elektro Ljubljana d.d. 18 OPERATING HIGHLIGHTS IN 2010 OPERATING HIGHLIGHTS IN 2010 19
1 General Information
I can feel cold water beneath the boat. I feel its power. It is still and mighty. But there, bellow the edge, it shall rage and take my breath away. I love it. I love its lively waves, its green-blue waves. I draw energy from here.
ANNUAL REPORT 2010 Elektro Ljubljana d.d. ANNUAL REPORT 2010 Elektro Ljubljana d.d. 20 GENERAL INFORMATION GENERAL INFORMATION 21
1.1. Company Profile The Company’s activities are organised into organisational units with the following tasks:
Distribution Network Operations and Development • management and operation of the distribution network, Name Elektro Ljubljana, • coordination of distribution network operations with the transmission network, podjetje za distribucijo električne energije, d.d. • transmission of electricity across the distribution network, • maintenance, development and construction of the distribution network, Abbreviated name Elektro Ljubljana, d.d. • metering and analysis on the field of the voltage quality. Address Slovenska cesta 58, Ljubljana User Services Activity 35.130 Electricity distribution • metering electricity flows, Identification number 5227992 • billing of electricity and network fees, Tax number SI49977725 • providing user access to the distribution network, • promoting efficient use of energy, Companies Register entry no. 199801636 • managing relations with network users. Companies Register entry date 4. 6. 1998 Share capital 163,412,977.80 EUR Electricity Purchases and Sales • managing supplier energy balances, No. of no-par value shares 39,160,286 • electricity purchases, Web site www.elektro-ljubljana.si • marketing of electricity products, • sale of electricity products.
Distribution Network Services • maintenance and construction services on the distribution network, 1.2. Organisation and Activities • marketing of services, consultation and performance of services relating to the of the Company planning, construction, maintenance and optimisation of electricity distribution and user networks.
Shared specialist departments are included in the Shared Services, Accounting and In 2010, Elektro Ljubljana remains the owner of the electricity infrastructure, leased Finance Services and Technical Support organisational units. out to the company SODO and according to the Contract on the Lease of Electro Distribution Infrastructure and Performance of Services for the System Operator of Operations are carried out at the Management Board’s head office in Ljubljana and the Distribution Electricity Network, performs the following services: five distribution units: Ljubljana City, Ljubljana District, Novo mesto, Trbovlje and Kočevje. • maintenance of the electricity infrastructure and organisation of duty services, • management and operation of the electricity distribution network, Pursuant to a decision taken at the 14th regular General Assembly on 25 August • development, planning and investment in the electricity infrastructure, 2009, a procedure has been launched to separate network and marketing activities. • preparation and management of investments, Therefore, a detailed inspection of the business operation was performed, based • supply quality management, on which the proceedings for the establishment of the new company for the • electricity metering, electricity purchases and sales were initiated, which shall be in the 100% ownership • preparation and implementation of programmes for better energy efficiency, of Elektro Ljubljana d.d.. The division proceedings are carried out in accordance with • provision of distribution network access services and other user services, the Companies Act, with the partial division as a selected model. • provision of other services for SODO.
ANNUAL REPORT 2010 Elektro Ljubljana d.d. ANNUAL REPORT 2010 Elektro Ljubljana d.d. 22 GENERAL INFORMATION GENERAL INFORMATION 23
Distribution unit directors MANAGEMENT BOARD • Roman Jesenko, Director of Ljubljana City Distribution Unit • Boštjan Žumer, MSc, Director of Ljubljana District Distribution Unit • Milan Mlakar, Director of Kočevje Distribution Unit; Vincenc Janša from 1 November 2010 onwards USER SERVICES • Mitja Brudar, MSc, Director of Novo mesto Distribution Unit • Anton Razpotnik, Director of Trbovlje Distribution Unit; Virna Konrad from 1 SHARED SPECIALIST DEPARTMENTS November 2010 onwards
DISTRIBUTION NETWORK SHARED SERVICES OPERATIONS AND DEVELOPMENT
1.4. The Supervisory Board DISTRIBUTION NETWORK ACCOUNTING AND SERVICES FINANCE SERVICES Share capital representatives • Andrej Šušteršič, MSc, Chairman ELECTRICITY PURCHASES TECHNICAL SUPPORT • Marjan Rekar, Ph.D., Deputy Chairman ORGANISATIONAL CHART OF AND SALES ELEKTRO LJUBLJANA D.D. • Jasna Kalšek • Aleš Šaver
Employee representatives • Mitja Fabjan 1.3. Management • Egon Hoda
The Management Board • Andrej Ribič, President of the Management Board after the expiry of the term of 1.5. Corporate Governance Mirko Marinčič, MSc on 22 March 2010
Advisors to the Management Board Corporate governance derives from the Companies Act, the Company’s articles of • Matjaž Osvald, Deputy President of the Board of Directors and Advisor to the association and the rights and responsibilities of the Company’s administrative and Management Board for Technical Issues management bodies. The Company has a two-tier system of governance. Relations between individual bodies are organised based on the mutual segregation of rights Procurator and responsibilities. The single-member Management Board is responsible for the • Branko Ogorevc, the Company Procurator since 15 November 2010 Company’s management and reports thereof to the Supervisory Board, which monitors operations and performs other activities within its legal competence. Shareholders Executive directors of organisational units take decisions regarding the Company’s future operations at the General Meeting of • Vincenc Janša, Executive Director of Shared Services and Deputy President of the Shareholders. The Company is subject to regular external audits and notifies the public Management Board, from 1 October 2010 onwards, Mark Collauti, Msc in accordance with applicable law. • Iztok Bartol, Executive Director of Distribution Network Operations and Development • Milan Švajger, Executive Director of Distribution Network Services • Gregor Božič, MSc, Executive Director of Electricity Purchases and Sales • Igor Podbelšek, MSc, Executive Director of User Services • Mojca Supej, MSc, Executive Director of Accounting and Finance Services • Jure Čater, Executive Director of Technical Support
ANNUAL REPORT 2010 Elektro Ljubljana d.d. ANNUAL REPORT 2010 Elektro Ljubljana d.d. 24 OPERATING HIGHLIGHTS IN 2010 OPERATING HIGHLIGHTS IN 2010 25
2 Business Report
I must be on the road before the sun goes down. But not quite yet. Now I must listen to the sound of waves. Now I must breathe this salty air. I draw energy from here.
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which affected the moderate basic inflation, but for the most part, it was due to the 2.1. Mission and Vision higher excise and other duties and energy product price increases.
The mission of The mission of Elektro Ljubljana is to build on 110 years of the Company’s tradition ENERGY ENVIRONMENT Elektro Ljubljana is and provide its customers with a comprehensive, quality, reliable and competitive to build on 110 years supply of electricity and related services. Conditions on the electricity market of the Company’s tradition and provide The vision of Elektro Ljubljana is to remain the leading Slovenian supply company, In 2010, the negative impact of the global financial and economic crisis strengthened Elektro Ljubljana is its customers with recognised throughout Europe with its own trademark in the field of electricity generation in the predominant part of the Slovenian economy. Elektro Ljubljana is strongly strongly included in a comprehensive, and distribution through the use of renewable energy sources and associated services. included in the total Slovenian economy, since it supplies electricity to all groups of the total Slovenian quality, reliable and consumers, which operate in very different branches, therefore the crisis also affects economy, since it competitive supply of our Company’s operations. Due to the crisis, the quantity of electricity, required by supplies electricity electricity and related our commercial customers for the performance of their activities decreased, the credit to all groups of services. 2.2. General Operating Conditions ratings of buyers worsened, while the number of insolvency proceedings increased. consumers, which On the other hand, new players are aggressively entering the electricity retail market, operate in very and they want to increase their market share and their incomes at the expense of different branches. MACROECONOMIC ENVIRONMENT existing suppliers. Thereby, the Slovenian dependency on the import decreased, which resulted in the equalisation of prices on the electricity markets in Slovenia and in In 2010, the global economic growth amounted to 5%, whereas according to the IMF Germany, while the presence of foreign suppliers on the wholesale market increased, estimations it shall slow down in 2011 in comparison to the year of 2010. According to which had a beneficial impact on the market’s liquidity. estimations, made at the beginning of the year, the global economic growth shall amount to 4.4% in 2011, whereby it shall still be powered by the fast-growing, mostly Asian The prices of electricity on the wholesale market for the supply in 2011 ranged countries. The European economy shall continue with its slow recovery. However, the between 45 EUR/MWh and 55 EUR/MWh. This is comparable to the movement of main risk of the economic growth in the Euro Zone is the risk of the expanding debt crisis.1 prices for the supply in 2010, while the lower level is also comparable to the prices from the end of 2005 and beginning of 2006. In 2010, the BDP in the Euro Zone, the GDP increased for 1.7%, whereas in Slovenia, for only 1.2%, which means that the recovery of the Slovenian economy was slower Relatively low electricity prices on the wholesale market were also the basis for compared to the Euro Zone’s average. The level of the GDP in Slovenia, after the the extremely strong pressure of the competition to all segments of the Elektro 8.1% real fall in 2009, still significantly lags behind the level of 2008. Ljubljana’s customers. Consequently the trend of decreasing retail margins continued, while increasingly more smaller business customers actively participate in the market. The increased export had the key meaning for the recovery in 2010; however, it did The level of customers’ demands also highly increased (purchase of energy directly not grow as fast as in foreign markets. Among the activities, the worst results in 2010 on the EEX exchange, purchase of quarterly and monthly products, options, price were recorded in the construction industry, which contributed to another fall of the and quantity risk management), which we follow by a more active approach on the gross investments in the fixed assets. Investments in machines and equipment slightly wholesale market and appropriate arrangements with suppliers. exceeded the level from 2009, mostly due to the encouraging increase of the foreign demand and the greater capacity utilisation. Higher orders from abroad also affected In 2010, great quantity risks were still present. In the production sector, the orders the real growth of the added value in the processing activities. The added value also stabilised, while the level of production in the medium-buyer segment and some specific increased in public services and most market services, except for the catering industry, branches remains low. The customers though, are considerably changing the burdening where it stagnated and for the financial brokerage industry, where it decreased. diagram, which follows the changed needs for electricity due to the economic crisis.
Bank funding of Slovenian companies and non-financial institutions significantly decrea sed last year. Slovenia is one of the rare countries of the Euro Zone, where the crediting of Regulatory framework companies by non-financial institutions deteriorated, compared to the year of 2009. As the owner of the electricity infrastructure, Elektro Ljubljana leases out its electricity
1 IMAD, Slovenian Economic Mirror The consumer price index increased for 2.2% in 2010, the same as in the Euro Zone. infrastructure to the company SODO since 1 July 2007, according to the Contract The relatively low price growth was above all due to the weak economic activity, on the Lease of Electro Distribution Infrastructure and Performance of Services for
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the System Operator of the Distribution Electricity Network and performs different The Agency follows the implementation of the regulatory framework during the services for this company. The amount of the rent for the infrastructure and of payments regulatory period, while after the concluded regulatory period; it prepares the account for services is determined in annexes to the Contract for individual years, whereby the adjustment of the regulatory period. The account adjustment for the period of 2004 distribution-network charge is set in the amount as laid down by the Energy Agency – 2009 for Elektro Ljubljana shows the access of revenues above the acknowledged of the Republic of Slovenia in the regulatory framework, until the adoption of the costs in the amount of 996,126 EUR. However, in March 2011, the Agency also methodology for establishing the costs of lease of the electricity infrastructure and the prepared the assessment of the account adjustment for the regulatory year of 2010, pricelist of services, related to the SODO activities. based on which, 4,074.3 EUR was additionally acknowledged to Elektro Ljubljana.
For each year of the individual regulatory period, the Agency prepares a regulatory In July 2010, a new methodology for setting the electricity network charge for the framework, which is an operationalization of the methodology for setting the period of 2011 – 20123 was adopted. By supplementing and amending the methodology, electricity-network charge, considering starting points and parameters for determining the Agency implemented novelties brought by the evolving electricity market (changed eligible costs for transmission and distribution networks and system services for the method of cross-border trading, changed mechanism of economic supports for individual regulatory period. renewable energy source producers and producers in cogeneration etc.) Among other, the methodology instructs the distribution network’s system operator to perform detailed The first regulatory period covered the period of 2003-2005 and the second, the period control of the user-supply quality by determining measurable quality standards. of 2006-2008. In 2008, the Government of the Republic of Slovenia agreed to prolong the validity of the existing Methodology for the Calculation of Electricity-Network However, the new Act still does not bring any significant changes in the planning Charge and Methodology for Setting the Electricity-Network Charge, and the of justifiable operating and maintenance costs, which are basically still determined Criteria for Determining Eligible Costs for Electricity Networks for the year of 2008. under the methodology, applicable in the period of 2006 – 2009.4 Namely, the realised Therefore, in 2009, the network charges for transmission and distribution networks costs in 2003 and 2004 are still the basis for determining justifiable operating and remained the same, while the network charge for the system services changed. For maintenance costs, while the planning of justifiable operating and maintenance costs the period of 2010-2012, the Agency drafted a proposal of the network charge, which should be based on the standards. however, did not receive the adequate support in the interministerial coordination process. Therefore, the Agency proposed to prolong the validity of the existing tariff The changes of the network charge according to the new Act mean that the final items for the 2009 network charge to cover the year of 2010. electricity price for the typical household final customer, who annually spends 3,500 kWh shall increase for 1.47 EUR per month as of January 2011 and as of 1 January As of 1 January 2010, the Act amending the Act Determining the Methodology 2012, for additional 1.02 EUR per month. for the Calculation of Network Charge and Methodology for Setting the Network Charge, and the Criteria for Determining Eligible Costs for Electricity Networks2 Thereby, the electricity price is set by electricity suppliers and is freely formed on the became effective, extending once again the validity of provisions previously set for market. The network charge, intended for the operation, maintenance and development the regulatory period 2006–2008 to 2010.The consolidated revenue generated by fees of the electricity network is set by the Agency. Supplements to the network charge are for the transmission and distribution networks in 2010 will thus be the same as in intended for covering costs of the Agency’s and market organiser’s operations, except 2008, but increased by the difference in eligible costs of electricity for network losses for the costs of the Support Centre’s activities. The Government also determined fees for arising from different quantities of electricity used and the costs of the purchase of providing reliable electricity supply by using indigenous sources of the primary energy, electricity to compensate for network losses at 49 EUR/MWh. Network tariffs in 2010 for providing support to the electricity production from cogeneration with high efficiency thus remain unchanged in comparison to those of 31 December 2009. and from renewable energy sources and for the increased efficiency of the electricity use.
3 Act determining the methodology for Operating conditions of Electro Ljubljana significantly worsened, due to the extension charging for the network charge, the methodology for setting the network of validity of the regulatory framework applicable to 2008 also to 2009 and 2010 and New fees in 2010 for providing support to the production of charge, and the criteria for establishing consequently, the unchanged starting points at determining eligible costs. Namely, electricity from cogeneration with high efficiency and from eligible costs for electricity networks, Official Journal RS, no. 59/2010 considering the network extent, the acknowledged operating and maintenance renewable sources, and for providing reliable electricity supply by 4 Act determining the methodology for costs are much too low and in addition, the confirmed network development plans using indigenous primary energy fuel sources charging for the network charge, the methodology for setting the network were not considered in the regulatory framework as well as the actual extent of the charge, and the criteria for establishing Company’s investments. Therefore, the regulatory framework takes into account too Having issued the Decision Laying Down the Fee to Support the Reliable Electricity eligible costs for electricity networks, Official Journal RS, nos. 121/2005 low regulatory base of funds and consequently too low acknowledged depreciation Supply by Using Indigenous Primary Energy Fuel Sources5, the Government set the and 126/2008 2 Official Journal RS, no. 113/2009 costs and lower acknowledged yield. average monthly fee of 0.06781 EUR/kW of capacity to be paid as of 1 January 2010. 5 Official Journal RS, no. 113/2009
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In accordance with the Decision to Support the Production of Electricity from New excise duty on electricity for commercial use Cogeneration with High Efficiency and from Renewable Sources6, effective as of 1 January 2010, the average monthly fee is 0.65584 EUR/kW of capacity. As of 1 April 2010, the duty on electricity for commercial use was raised from 0.5 to 1 EUR/MWh9, equalising the duty on commercial use with the duty on non- commercial use. Regulation on Energy Savings Ensured to Final Customers On 1 August 2010, the excise duty en electricity increased again, namely to 3.05 Among the measures for promoting the use of renewable sources of energy and energy EUR/MWh.10 savings, the Government, at the end of the year of 2009, adopted the Regulation on Energy Savings Ensured to Final Customers.7 The Regulation was adopted in compliance with the European Directive, which lays down that system operators of the Act Amending the Energy Act distribution network and energy suppliers provide final customers with competitively priced energy services, energy audits and energy efficiency improvement measures, In April 2010, the Act Amending the Energy Act became effective (EZ-D)11, which on i.e. contribute to energy efficiency funds. In the Republic of Slovenia, the Eco Fund – the field of the electricity supply, inter alia: Slovenian Environmental Public Fund was tasked with implementing the mechanism. • introduces the order of electricity disconnections in the case of a crisis, • eliminates a number of ambiguities in the spatial placing of energetic structures and The Regulation thus requires that all system operators, as well as suppliers of energy arrangement of ownership and easement relationships within the existing energetic to final consumers, reach a minimum of 1% saved energy with final consumers per infrastructure, year. The Regulation also stipulates the mandatory drafting and implementation of • determines measures for the efficient control over the energy market. programmes to boost energy efficiency by laying down their detailed structure. The methodologies for determining energy savings are laid down in separate Rules8 which stipulate in detail both energy services and measures. Energy Balance of the Republic of Slovenia for the year of 2010
The Regulation also stipulates that the funds for financing programmes are collected Acting on the proposal of the Ministry of Economy, the Government of the Republic In 2010, the trend of through contributions and supplements paid by final consumers to suppliers. The fee of Slovenia, on 29 July 2010, adopted the Energy Balance of the Republic of Slovenia reducing the use of to be included on the electricity invoice as of 1 February 2010 in the amount of 0.05 for the year of 2010 (EBRS). The EBRS indicates the flow of supply, transformations fossil fuels continues, cent/kWh is laid down in an Annex to the Regulation. and consumption of all energy sources. while the share of using renewable The EBRS 2010 anticipates the final consumption of electricity in the amount of energy sources and Annexes nos. 2 and 3 the contract on the lease of infrastructure and 11.408.8 GWh, which is for 1.4% more compared to the previous year. 5,433.5 GWh waste increases, as provision of services to SODO (2.1% more compared to the previous year) shall be consumed in the industry, 165 GWh well as the production (6.5% more) in the transport and the rest shall consume 5,810.3 GWh (0.7% more). of electricity in the On 25 February 2010, the Government gave its consent to the Annex no. 2, and on 7 photovoltaic solar October 2010 to the Annex no. 3 to the contract on the lease of electricity distribution In 2010, the trend of reducing the use of fossil fuels continues, while the share of plants. infrastructure, and services provided for the system operator. The Annexes nos. 2 and using renewable energy sources and waste increases, as well as the production of 3 stipulate for the years of 2008 and 2009 and for the year of 2010 respectively, the electricity in the photovoltaic solar plants. amounts for the lease of the infrastructure, provision of services associated with the electricity infrastructure and the purchases of electricity to cover network losses. The Since the Slovenian needs for Energy exceed domestic capacities, Slovenia must Annexes also precisely determine the manner in which services are to be provided by cover over a half of its energy needs by imported energy sources. the infrastructure owner, and information, including information on services rendered, submitted to SODO and other stakeholders. 9 Act Amending the Excise Duty Act, 6 Official Journal RS, no. 113/2009 Official Journal RS, no. 19/2010 7 Official Journal RS, no. 114/2009 The Annex no. 2 also defined the transfer of fixed assets, financed from the funds of 10 Decree fixing the excise duty level the average connection costs, acquired in the period from 1 July 2007 to 31 December for electicity, Official Journal RS, no. 8 Rules on the methods for 61/2010 deteremination of energy savings at 2009, into the ownership of SODO d.o.o.. On 10 August 2010, the Government of final customers, Official Journal RS, 11 Official Journal RS, no. 22/2010 no. 4/2010 the Republic of Slovenia also gave its consent to the transfer of Elektro Ljubljana’s infrastructure to SODO.
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2.3. Distribution of Electricity NUMBER OF CUSTOMERS OF ELEKTRO LJUBLJANA IN 2006 – 2010
aver. Elektro Ljubljana d.d. operates distribution transformer stations (DTS) of varying Consumption group 2006 2007 2008 2009 2010 2010/2009 2010/2006 voltages and transmission ratios: three 110/35 kV DTSs, twenty-three 110/20/10 Kv MV 1-35 kV 413 414 433 438 454 +3.7% +2.4% DTSs and two 35/20/10 kV DTSs. Twenty-five distribution stations (DS) ensure the LV without voltage metering 25,290 25,942 26,599 25,781 25,726 -0.2% +0.4% reliable distribution of electricity to end users. LV with voltage metering 3,116 3,527 3,932 4,042 4,166 +3.1% +7.5% Public lighting 2,513 2,535 2,567 2,600 2,629 +1.1% +1.1% We are connected to the transmission network at the following supply points: Beričevo 400/220/110 kV DTS, Kleče 220/110 kV DTS, TET 110/35 kV DTS and Hudo 110 kV DS. Households 277,823 283,527 287,108 291,136 293,545 +0.8% +1.4% Total number of customers 309,155 315,945 320,639 323,997 326,520 +0.8% +1.4% We operate a total of 18,532 km of lines over 6,166 km2, and supply 326,520 customers via 5,224 MV/0.42 kV transformer stations (TS). Continuous growth in the number of distribution devices over the years shows the rapid development of the network and The long-term trend of rising numbers of customers is most stable in the household increased consumption. segment, with the number of customers rising on average by 0.8% annually since 1990. The number of LV customers has risen sharply in the last five years, exclusively as result of metering in accordance with the opening up of the electricity market. SIZE OF THE NETWORK PER VOLTAGE LEVELS IN 2010 (IN KM)
Voltage 110 kV 35 kV 20 kV 10 kV 1 - 0,4 - 0,2 kV Total Elektro Ljubljana’s electricity balance for 2010 shows a 3.3% increase in intake from the transmission network over 2009. Length (km) 312.8 164.2 4,339.4 950.8 12,764.9 18,532.1
NETWORK GROWTH PER INTAKE IN GWH ELECTRICITY INTAKE OF VOLTAGE LEVELS 14,000 INCREASE/DECREASE FROM PREVIOUS YEAR ELEKTRO LJUBLJANA IN IN 1980 – 2010 (IN KM) 2006–2010
12,000 2010 4,169.0 + 3.3% 110 kV 35 kV
20 kV 10,000 2009 4,036.2 - 2.4% 10 kV 1 - 0.4 - 0.2 kV 8,000 2008 4,136.3 + 2.1%
6,000 2007 4,052.9 + 2.7%
4,000 2006 3,945.4
2,000
0 Despite the increased energy flow, 2010 has seen a 0.4% lower peak power over 2009. 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
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MAXIMUM LOAD IN NUMBER OF FAULTS 2006 – 2010 (IN MW) 2010 657.5 AND INTERRUPTIONS IN ELECTRICITY SUPPLY PER MONTHS IN 2010
2009 660.4 Faults Interruptions
2008 631.8
2007 630.1
2006 606.0
Elektro Ljubljana makes Elektro Ljubljana makes every effort to ensure its customers are provided with 65 64 30 49 23 64 21 35 47 76 36 106 67 155 36 147 69 104 54 67 61 106 48 52 every effort to ensure its a quality and uninterrupted supply of electricity by managing and maintaining the customers are provided network, appropriate planning, measuring the quality of the electricity supply at JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC with a quality and intake points and at customers, and through the continuous maintenance of metering, uninterrupted supply of protective and telecommunication devices. electricity by managing and maintaining the In 2010, there were 557 unplanned events, i.e. sustained faults requiring network network, appropriate intervention by staff on the network managed by Elektro Ljubljana. In addition to NUMBER OF FAULTS planning, measuring the sustained faults, there were 1,025 interruptions (short outages of up to three minutes) 2010 557 1,025 AND INTERRUPTIONS IN ELECTRICITY SUPPLY IN quality of the electricity that were the result of snowy conditions in the winter, and atmospheric discharges and 2006 – 2010 supply at intake points strong winds in the summer. 2009 649 1,075 and at customers, and Faults Interruptions through the continuous In September 2010, flood water reached the southern part of Ljubljana and a portion maintenance of of Kočevje area. There was no greater direct damage; however, there were some cable 2008 788 1,297 metering, protective breaks and urgent replacements by polyethylene single core cables. Customers were and telecommunication the most affected by the preventive disconnections of distribution boxes and TS, devices. which were flooded by water. Some areas stayed without supply for over 24 h. 2007 928 1,052
2006 691 631
The reliability of the supplied electricity is monitored using the System Average Interruption Frequency Index (SAIFI) and the System Average Interruption Duration Index (SAIDI) with regard to specific reasons for interruptions.
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RELIABILITY OF THE SUPPLIED ELECTRICITY NUMBER OF CUSTOMER COMPLAINTS WITH REGARD TO VOLTAGE COMPLIANCE SAIFI SAIDI AND NON-COMPLIANCE (no. of interruptions/customer) (min. interruption/customer) IDENTIFIED IN 2006 – 2010
2009 2010 Index 2009 2010 Index 196 236 138 158 170 Compliance identified Planned events 0.9223 0.6910 74.9 130.54 88.08 67.5 Non-compliance identified Unplanned events Number of complaints
- Own cause 1.1808 0.9498 80.4 49.47 40.76 82.4
- Other cause 0.3553 0.1388 39.1 7.63 3.51 46.1
- Force majeure 0.2599 0.3996 153.8 15.65 33.15 211.8
We measure, analyse We measure, analyse and report on the quality of electricity in accordance with and report on the standards SIST EN 50160 and SIST HD 50160 S1. We undertake monitoring, namely quality of electricity continuous electricity quality management at defined points along the electricity 89 107 120 116 52 86 60 98 60 110 in accordance with network. We monitor the quality of electricity through sampling in accordance with standards SIST EN the annual plan and at the request of distribution network users. Following quality
50160 and SIST measuring, we issue a statement regarding the conformity of the quality of electricity, 2006 2007 2008 2009 2010 HD 50160 S1. We at the request of network users. undertake monitoring, namely continuous All facilities on the borders between the distribution and transmission networks, on electricity quality the border with neighbouring distribution companies and at points along the network As part of the network development process, we conducted a series of operation and management at are equipped with instruments for the constant monitoring of EQM. There are also outage analyses, and drafted event reports and operating instructions for distribution defined points 75 measuring points for the constant monitoring of electricity quality management at facilities and users. We published monthly and annual bulletins, compiled annual along the electricity the MV level, thus continuing the phase of the planned establishment of permanent event statistics and updated the network unipolar scheme. On the field of planning the network. electricity quality management. renovation and development of Elektro Ljubljana’s electricity system, a large number of electricity reports and studies were prepared, whereby we checked possibilities of As part of planned systematic measurements of electricity quality management, we connecting new supply to the distribution network. We actively cooperated with the conducted measurements throughout the region covered by Elektro Ljubljana, where Electro Institute of Milan Vidmar in the preparation of studies on the development of the criterion for the selection of customers was a customer’s commissioned power Slovenian distribution network. exceeding 500 kW. In 2010, we produced for SODO a draft of the Distribution Network Development Plan In 2010, we received 170 customer complaints due to poor voltage quality. In 110 for the Republic of Slovenia for the Period 2011–2020. The Draft presents the costs cases, deviations of at least one voltage quality parameter from the limits prescribed and timelines of new construction and renovation of Elektro Ljubljana’s electricity by standards were identified, while in the remaining 60 cases all voltage quality distribution facilities The Draft was sent to SODO at end of the year of 2010. parameters were in line with SIST EN 50160 standard. The following documents were issued in 2010: • 830 project conditions, • 1441 approvals of project solutions, • 8600 approvals for connection to the distribution network12, 12 Without issued connection • 112 guidelines and opinions to local and national spatial plans. approvals to qualified producers
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efficient, since, in addition to terminating the MO programme, it reaches a positive NUMBER OF THE REALISED effect by using the existing communication channels, which are already present in CONNECTION APPROVALS 2010 2,997 FOR 2006 - 2010 these locations through industrial meters.
2009 3,094 On the field of electricity metering, the following projects were undertaken in 2010:
• Project KIBERnet (programming the algorithm of DEO mathematical model for indu 2008 3,927 strial load management) was concluded with the 6th landmark, whereas the practical demonstration of its operation and testing period in anticipated as of 1 March 2011.
2007 4,957 • Project PERUN: Based on the project assignment “Adjustment of the PERUN Web Portal – Automation in Providing Metering Data”, the integral solution was placed 2006 4,945 into use with September 2010, which significantly reduced the manual work of the operator in the Metering Centre.
• Project AMR Trnovska 10 was physically concluded. The service of providing metering data from heat, gas meters, for the needs of the building manager does not In the process of issuing documents for connecting new users to the network, nearly three include only providing metering data to the manager of the building on Trnovska times the number of project conditions and nearly four times the number of connection street, but for all buildings managed by LORA d.o.o. (800-900 apartment units). approvals were issued to qualified producers in 2010 in comparison to 2009. • Test installation of analysers MC760: A technical solution for the installation of the MC760 network analyser was created. In the pilot project, we equipped two TS (TS Betonarna Trzin and TS Bukovčeva) with all functionality, tested in the test period NUMBER OF PROJECT CONDITIONS AND CONNECTION APPROVALS ISSUED TO QUALIFIED of 3 months, ending in February 2011. The results shall be the basis for determining PRODUCERS the sensibility of further installation of network analysers in TS.
Year SHP* Photovolta Biomass CHP Total • The testing of new products of suppliers of the Itron metering equipment with direct Project conditions 2010 0 233 10 5 248 technical support of the Itron Austria is rapidly evolving. Drivers required for the issued 2009 4 87 2 0 93 intake and management through the Advance system are being created.
2010 3 141 4 6 154 Connection • Integration SOIPE and PISELJ is one of priorities considered in the created approvals issued 2009 3 37 0 3 43 functional specification of the programme SOIPE 3.0 and is being realised in 2011. * SHP (Small Hydropower Plants) • Testing of Energy Control modules as part of the AN 06-2 section C development project. Investors are Investors are mainly interested in the construction and connection of photovoltaic mainly interested sources of electricity, which is the result of substantial state subsidies for electricity • The Project AMM Domžale was successfully concluded in the anticipated time in the construction generated by such power plants. frame, whereby the CB analysis of the project’s success was also created. and connection of photovoltaic sources of As part of the metering electricity process, the works and activities on the project • Adjustment of the remote reading in metering points MO with the purpose of cost electricity, which is the AMM Domžale were completed in 2010. Additional quantities of metering devices rationalisation of MO reading by using the existing remote communication from result of substantial were installed on the area of the abolished management of Črnuče, which was the metering point above 41 kW. state subsidies for transferred under the management of Domžale. All works in individual TS were electricity generated by concluded, so that the selection area could be transferred to remote collection. The maintenance of components (high-voltage – HV, medium-voltage – MV and low- such power plants. voltage lines – LV, DTS, DS, TS, customer connections, etc.) comprises preventive and At the end of the year, a special attention was devoted to placing the metering points corrective maintenance. Preventive maintenance includes recording the state of, planning of small commercial customers (MO) under the remote metering (large number of and carrying out maintenance, and the updating of documentation, while corrective metering points, mostly in large trade-commercial centres). The project is strictly cost maintenance involves maintenance resulting from extraordinary events and faults.
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Within the maintenance process, we prepare and monitor the plan of maintenance of electricity devices and components, from the 110 kV level to the LV level of the whole SALE OF ELECTRICITY IN GWH ELECTRICITY SALES OF CHANGE COMPARED TO THE PREVIOUS YEAR ELEKTRO LJUBLJANA IN Company, and coordinate it with SODO. We follow complaints and anomalies in the 2006 - 2010 (GWH) equipment, maintenance and planning procedures and systems and suggest appropriate solutions. We take care of the standardisation of elements and systems of the electricity 2010 3,466.6 - 3.0% network, creation of technical guidelines and technical notifications. We participate in the creation of technical tendering conditions, follow technical standards and watch 2009 3,573.1 + 4.1% over the construction and maintenance of the technical database (TDB).
The progress of maintenance works is monitored systematically by various applications, 2008 3,431.1 + 1.8% with the technical database (TDB) serving as a basis. In 2010, the Company’s own activities on the maintenance works increased compared to the previous year, due to the decreased investment activities. More maintenance works were performed with our 2007 3,371.7 - 0.1% own workers and consequently the costs of outsourced maintenance services decreased.
2006 3,376.2 We are also intensively implementing the upgrading and improvement of the spatial information system of Elektro Ljubljana (PISELJ), which serves for the TDB management and different enquiries on the properties of the distribution electricity network (DEN). The implementation of the topology and maintenance management is anticipated within the upgrading process.
In 2010, new standards on the field of planning overhead lines became effective, In 2010, the Elektro Ljubljana consolidated sub-group (CSG) sold 1,073.8 GWh whereby we actively participated. In addition to the standardisation field, we were also of electricity to household customers, 1,940.1 GWh to commercial customers and active in the creation of studies, monthly and annual reports to JARSE and SODO, 452.8 GWh to other uses, such as sales to other retailers and exchange with Croatia. introduction of new DEN management processes, management of test installations and preparation of legislation, covering the DEN management.
The Company’s investment activities are presented in more detail in section 2.10, STRUCTURE OF ELECTRICITY Investments. SALES OF ELEKTRO LJUBLJANA IN 2010 COMMERCIAL CUSTOMERS 56%
2.4. Sale of Electricity
HOUSEHOLD CUSTOMERS 31% ELECTRICITY SALES IN 2010
In Elektro Ljubljana, the sale of electricity in 2010 decreased for 3% compared
to the previous year, due to the impact of the economic crisis and pressures of the OTHERS 13% competition on the electricity market. Therefore, we sold 3,466.6 GWH of electricity in 2010, which is 0.3% more than we planned.
However, we plan an increase in sale for 56% in 2011 compared to the year of 2010, due to the increased arbitration operations on the wholesale market and the sale of electricity in order to cover losses in the distribution networks.
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POSITION IN THE ELECTRICITY MARKET portion of the portfolio, the energy is bought in parts throughout a longer period of time. This means that there is a delayed impact of the wholesale prices’ movement on In Elektro Ljubljana the beginning of trading since 2001 was focused on the formation the retail prices’ formation. of new electricity products for larger commercial customers than for other commercial customers and since 2007, also for the household customers. At the same time, the whole Due to a great drop of prices compared to the prices before the economic crisis sale market was evolving and so were the purchase and sales strategy and retail products. and aggressive approach of the competition, the pressure of those customers, who concluded their futures contracts before the recession, strongly intensified. Too large Gradual development of Already in the early years, Elektro Ljubljana actively encroached on the electricity market quantities are planned in these contracts, while the prices reflect the market conditions the market, new cross- and tried to include some production structures in Slovenia into its consolidated group of the time, when these contracts were concluded. In order to prevent terminations of border transmission that would provide appropriate mechanisms for the risk management of the electricity contracts and thereby, a number of judicial proceedings, we developed two models of capacities on the border market. Namely, electricity cannot be stored nor can it be freely transferred from one the long-term cooperation, whereby we reprogrammed the contractual obligations to a between Slovenia country to another because of the transfer limitations. Because of these characteristics, longer time period. We also agreed with suppliers on an option of a similar contractual and Austria and the large price oscillations occur, which consequently brings great exposure of individual restructuring for equal quantities, which shall be realised if necessary, depending on changed conditions on traders or consolidated group representatives. This reflected in greater connection with the portfolio and market conditions. the Southeast Europe the largest Slovenian producers, consolidated into the Holding Slovenske Elektrarne electricity market, bring (Slovenian Power plant Holding – HSE). By a later separation of production pillars and Throughout the whole year, we also submitted our tenders in the public procurement new possibilities in the strategy of GEN Energija to directly enter the retail market, Elektro Ljubljana was procedures of the public-sector bodies for the supply of electricity, where the the electricity trading exposed to new challenges and greater competition on the retail market. competition’s pressures were even stronger than in other market segments, due to the on the wholesale smaller loan risks. Despite that, we managed to retain several public-sector bodies. market, also for Elektro Gradual development of the market, new cross-border transmission capacities on the Ljubljana. border between Slovenia and Austria and the changed conditions on the Southeast Europe electricity market, bring new possibilities in the electricity trading on the HOUSEHOLD CONSUMPTION wholesale market, also for Elektro Ljubljana. Expanding the network of wholesale market partners enables Elektro Ljubljana to expand operations and greater Also in the segment of household customers, the pressure of the competition, who We enriched the competitiveness on the retail market. Consequently, Elektro Ljubljana terminated its took advantage of the relatively advantageous market prices compared to the existing services market with membership in the HSE consolidated group at the end of 2010, and on 1 January 2011 prices of household customers, intensified during the year of 2010 In 2010, Elektro the new product established its own consolidated group. Ljubljana managed to keep the same prices for the Basic Supply of Electricity for an called Save With Us, Indefinite Period of time, while we continued to offer the active customers the option which follows modern to conclude a contract for a definite period of time with fixed prices for a selected trends of consumption COMMERCIAL CONSUMPTION time period, called MY PACKAGE. By this approach, we managed to keep most of management and the customers. enables savings for Due to the variability of the wholesale-market prices and insecure economic conditions, the households, if medium and large commercial customers mostly decided on the conclusion of annual During the year of 2010, we also continued with the development of new household they adjust their contracts. Long-term contracts for most of the industry expired at the end of 2009, products. We enriched the services market with the new product called Save With consumption therefore the competition in this segment was very aggressive and we lost a part of this Us, which follows modern trends of consumption management and enables savings dynamics. portfolio for 2010. However, by undertaking an active approach and development of new for the households, if they adjust their consumption dynamics. We also continued optional, futures and current products, we managed to stop the dropping of the portfolio, with the preparation of the »Loyalty Scheme« for household customers, which shall during the year of 2010, and acquire some new large customers for the year of 2011. improve the Company’s image, increase the competitiveness and help to maintain the market share and shall thereby positively affect revenues from the electricity sale to The pressure of the competition intensified also in the segment of small commercial households. customers. In this segment, customers were transferring from the contracts for an indefinite period of time to futures contracts for a definite period of time, sales margins were decreasing and the customers were also crossing to the competition. ENERGY MANAGEMENT
We did not change retail prices for commercial customers with contracts for an By developing and purchasing new software in 2010, we continued to establish indefinite period of time during the year of 2010 or for the year of 2011. For this an information system for a comprehensive and integrated approach to managing
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the purchase and sale of electricity, which includes the management of quantity The Service Save With Us enables savings to the customers by switching electricity In collaboration with aggregation, a forecast of electricity consumption, a forecast of electricity prices, an users on and off. Upon the users’ desire, Elektro Ljubljana switches on the selected Slovenian producers, we analysis of the portfolio of Elektro Ljubljana’s consolidated sub-group (CSG) and risk electricity users in the period of the lower tariff and switches them off in the period have developed a new management. of higher tariff. brand called the BLUE ENERGY, which stands By implementing this project, our aim is to create a tool for managing the quantity The Green Energy is a Company brand representing the sale of electricity generated for electricity generated aggregation of CSG members that will facilitate the efficient preparation of data, from environmentally friendly and renewable energy sources, small hydroelectric from renewable sources the long-term and short-term forecasting of the quantitative electricity turnover of power plants and solar power plants of the subsidiary. of Slovenian rivers. CSG members, forecasting electricity prices. Our objective is to develop a tool for determining the value of the portfolio of individual members and the portfolio of In collaboration with Slovenian producers, we have developed a new brand called the CSG as a whole, and a tool for identifying risk exposure and linking systems for the Blue Energy, which stands for electricity generated from renewable sources of managing the wholesale and retail markets and for managing basic information from Slovenian rivers. the wholesale market. The result will be a comprehensive overview of the overall business processes of electricity purchases and sales that will assist the Company in The users can communicate with Elektro Ljubljana in different ways: its strategic decisions. The implementation of the project, scheduled for completion in 2011, is necessary for the appropriate management of electricity market risks, • by calling the Call Centre (CC) for maintaining the Company’s leading role in the electricity market, for ensuring • by sending a letter by regular mail, profitable operations, and for appropriate customer analysis and the development of • by e-mail to addresses [email protected] and [email protected], new products. • by personally visiting information offices, • by using e-services.
Users most commonly use the path of calling the CC. There is a path of using less time-consuming paths, which are more efficient for the user. There are less personal visits and more calls to the CC. We also record an increase of communication by 2.5. Other Services e-mail.
SERVICES FOR COMMERCIAL AND HOUSEHOLD CUSTOMERS Call Centre
Data and consulting services The number of calls to the CC is rapidly growing, while the consequence of that is a poorer responsiveness, namely a longer waiting time for an available operator. The GREEN ENERGY The PLUS Data Package, in addition to the Basic Data Package, includes archiving The adopted measures (additional engagement of operators, software upgrading…) is a Company brand and regular processing of data on the buyer’s payments and monthly supply of these do not keep up with the growth trend, because the work in the CC requires additional representing the sale data. Based on these data, the buyer can acquire exact information on the dynamics of training. of electricity generated the made payments and transparent calculation of different grades of the payment risks. from environmentally friendly and renewable The SPLET Data Package, in addition to the Basic Data Package, includes access Information offices energy sources, small to the diagram of charges through the internet. It is intended for customers with the hydroelectric power commissioned power over 41 kW. Information offices, where the user can acquire different information and arrange all plants and solar power the formalities in the process of the user relations management (from the application plants of the subsidiary. The SPLET.EN Data Package is a simpler version of the SPLET Data Package and is for the network connection to changes in the metering point or in the contractual intended for customers with the commissioned power less than 41 kW. relationship) are located on the seat of the Company, seats of the distribution units and of larger control units. In the smaller control units, where service is occasionally The Basic Consulting Package includes a calculation of the anticipated total costs provided to customers, information points are established, without publishing office of electricity and network charge. Based on the offer, we also adjust the consulting hours. The goal is to gradually move to other modern ways of communication. services to the customer’s needs.
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Electronic services measures, approximately half the funds compared to the year of 2009 were used in this field. The funds were used for the marketing activities in the household target group In 2008, electronic services were available only to customers with a verified digital for My Package, My Package 3T-Single and 3T-Double, for additional household certificate, while by modernisation at the end of 2008, we enabled the use of e-services services (Energy Consulting, Safe in Your Home, Save With Us), for the marketing also without the certificate. In addition, we expanded the range of services that users of renewable energy sources, for the marketing in the commercial customers target can perform by electronic operations. Thereby, we are trying to bring closer to our group and on the corporate level. customers the modern communication method that is the least time consuming. In 2011, we expect intensified pressures of the competition, both as regards the price We created a brochure for the users, the purpose of which is to promote the use of and as regards the diversity of offer related to different packages of electricity and electronic services. The use of electronic services was brought closer to the users also by additional services. Therefore, the Company faces important challenges of finding information contained on the back side of the bills. We shall provide as much as possible new opportunities, recognising the customers’ needs in different target groups, that services of Elektro Ljubljana could be selected through electronic services. creative solutions, adaptations and constant development.
INVESTMENT ENGINEERING SERVICES CUSTOMER RELATIONS MANAGEMENT
In the framework of other services, Elektro Ljubljana also invests in the distribution Our goal in the field of customer relations is to provide efficient, modern and user- Our goal in the field of network for the Company’s own needs, while in order to rationalise operations, redundant friendly service, supported by different consulting services, which we are achieving by customer relations is workers are also channelled to perform services for external clients. These services constant training of the employees, development of new products and optimisation of to provide efficient, include investments and project design for a foreign client, building LV distribution business operations. We provide efficient tools to our employees to monitor customer modern and user- connections, performing contractual maintenance works, work on the energy devices of relations, which enables them to attend to customers with a higher quality. friendly service, third parties, performing services on the field of renewable energy sources etc. supported by different Elektro Ljubljana has had a CRM system in place since 2001, whereas when we consulting services, Therefore, at the beginning of 2010, we established and trained our own team of workers transferred to a new version in 2008, we acquired a modern system that follows service which we are achieving for the construction of solar power plants. We perfected ourselves in energy consulting oriented architecture. In 2010, the following more significant activities were carried out by constant training on the area of renewable energy sources and undertook training for the creation of the in the CRM system: of the employees, complete project documentation for solar power plants. In the future, we shall also development of cooperate in the projects for the construction of wind power plants and CHP. • increasing the version in the production from 8.4 to 10.2, new products and • creating the integration with the Perun portal (insight into the scanned documents), optimisation of • implementation of pricelists of new products for household customers, business operations. • implementation of the entity ‘credit rating’ and transfer of data from the DWH (data warehouse), 2.6. Marketing • preparation of work flow for the support of recovery of debts from medium and large commercial customers with contracts for a definite period of time, • creating a service for the transfer of data from the Call Centre, MARKETING OF ELECTRICITY AND SERVICES • implementing the web service for the insight into the issued invoices, • implementing the creation of forecasts in the offer, In the marketing In the marketing process, we follow objectives set in the Company’s business plan. • implementing the creation of contracts on the Basic Supply from the metering point process, we follow We carry out different activities aimed at preserving our market share at the sale of level, objectives set in the electricity to commercial and household customers develop and form new products for • introduction of time sections for recording the history and changes on the metering Company’s business different target groups, take care of better Company’s visibility also in the consulting point, plan. field and for acquiring maximum satisfaction, loyalty and sense of belonging of the • implementation of the support for the process of concluding contracts for an customers. indefinite period of time with household customers, • preparation of bases for the basic supply display (contract, letters, annexes…), In 2010, there were fewer funds intended for the marketing process, according to • completion of training for 19 new system users. the saving measures. In the framework of operational rationalisation and cost cuts
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2.7. Performance Analysis tenance of foreign energy devices, sales of telecommunications services, direct connection costs and other services. In 2010, they were realised in the amount of 8,509.2 thousand EUR and were higher than the planned ones for 5.9%, whereas Elektro Ljubljana Elektro Ljubljana concluded the 2010 financial year with anet profit of 1,347.8 thousand compared to the ones of 2009, they were higher for 3.9%. concluded the 2010 EUR, i.e. for 371 thousand EUR or 38% higher compared to the previous year. financial year with a Revenues from own investments were realised in the amount of 9,520.5 thousand EUR net profit of 1,347.8 Compared to the business plan for 2010, the realised profit before tax was lower for in 2010, i.e. for 18% higher than the planned revenues. However, in comparison to thousand EUR, i.e. for 1,333.3 thousand EUR, which is primarily the consequence of including the account the previous year, the realisation of the capitalised own production and services was 371 thousand EUR or adjustment of the regulatory period of 2004 – 2009 into the profit or loss of 2010. lower for 34.3%, because of the drastic decrease in the volume of investments. 38% higher compared to the previous year. Other operating revenues realised in 2010 amounted to 2,178.1 thousand EUR, 9.8% REVENUES higher than the planned figures and 16.5% higher than in 2009. The increase is mostly due to the change in recording revenues from rents, which were recorded within sales In 2010, Elektro Ljubljana generated total revenues of 289,766.4 thousand EUR, revenues in 2009, whereas according to the accounting standards, they represent a which was 1.8% more than planned, but 4.2% lower than in 2009. part of other operating revenues in 2010. In 2010, other operating revenues are higher also because a portion of provisions for loyalty bonuses was eliminated and of higher Operating revenues represent 97.9% of the Company’s total revenues. Revenues from received European funds. electricity sales account for the highest proportion of operating revenues (72.9%). Financial revenues achieved in the amount of 493.5 thousand EUR, were 4.1% lower Net sales revenues, were realised in the amount of 271,911.4 thousand EUR in 2010, than the planned figures, but 28.3% lower than the ones realised in 2009, mainly on which is 0.1% higher than planned. Compared to the year of 2009, they were lower for account of lower revenues from interests for the sold electricity and charged network 3.9%, mainly on account of lower revenues from the electricity sales. charge.
Electricity sales revenues in 2010 amounted to 206,719.8 thousand EUR in 2010, Other incomes in 2010, were realised in the amount of 5,662.9 thousand EUR and which is 0.5% higher than planned. Because of the lower achieved average sales prices were higher than the planned ones for 135.7%, whereas compared to the ones of 2009, and smaller extent of sales, mostly due to the fierce competition on the electricity they were higher for 113.8%. This derogation is mostly due to the diminishment of the market, they were lower for 6.8% compared to the previous year. penalty, under the decision of the Competition Protection Office (for the established concerted action of electro distribution companies at the increase of electricity prices Revenues from the leasing of the infrastructure to, and services provided for SODO, in November 2007) from 3,533.4 thousand EUR to 125 thousand EUR. together with losses saved (the difference between recognised and actual losses of electricity in the network), amounted to 57,678.5 thousand EUR in 2010. In 2010, revenues from the leasing of the infrastructure to, and services provided for SODO EXPENSES also include the estimated account adjustment of the regulatory year of 2010, prepared by the Energy Agency of the Republic of Slovenia and SODO d.o.o. based on the Total expenses of the Company amounted to 288,418.6 thousand EUR, and were estimated data for 2010. The revenues from the leasing of the infrastructure to, 2.3% higher than the planned figures, but 4.3% lower compared to the previous year. and services provided for SODO (together with losses saved) were lower for 0.4% compared to the planned ones. However, compared to the ones of 2009, they were Similarly to revenues, electricity accounts for the highest proportion (70.8%) of higher for 8.9%, because the account adjustment of the regulatory year of 2009 was operating expenses, which represent 96.7% of the Company’s total expenses. not created in time to be included in the profit or loss for 2009. Electricity purchase costs amounted to 197,633.3 thousand EUR in 2010. Due to the Therefore, the profit or loss for 2010 includes also the total account adjustment for smaller purchase quantities and lower average purchase prices, electricity purchase the period of 2004 – 2009, which for Elektro Ljubljana, shows the access of revenues costs were lower for 6.2% compared to 2009. They were 0.7% lower than planned. above the approved costs in the amount of 996.1 thousand EUR. Other material and service costs were realised in the amount of 24,876.2 thousand Revenues from the sale of other services and material comprise revenues from EUR in 2010. Compared to the planned ones, they were higher for 11.1% mostly investments and projects for external parties, the construction of connections, main due to higher costs of material for the implementation of investments for own and
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other account, which also reflected in higher revenues. However, compared to the previous year, they were lower for 17.7%, mostly due to lower costs of material for OPERATING REVENUES AND the implementation of own investments and lower costs of material and services EXPENSES IN 2010 for the maintenance. In 2010, there was a drastic decrease in the costs of clearings, REVENUES FROM ELECTRICITY SALES 72.9% construction services, painting services and maintenance services on the electricity components and devices, which inter alia, is also the consequence of replacing services of others with our own teams. As a result of strict operational rationalisation REVENUES FROM THE LEASING OF THE INFRASTRUCTURE measures, the decrease of other costs of material and services was also evident in 2010. AND SERVICES PROVIDED FOR SODO (including the losses saved and account adjustments) 20.0% Among others, the costs of small inventory, office supplies, education, advertising,
representation, student service and other services, strongly decreased. REVENUES FROM THE SALE OF OTHER SERVICES AND MATERIAL 3.0% Labour costs in 2010 amounted to 30,171.5 thousand EUR, and exceeded the plan for 3,5%, mostly because of the payment of a Christmas bonus, which was unplanned. CAPITALISED OWN PRODUCTS AND SERVICES 3.4% Compared to 2009, the labour costs were lower for 1.1%, which is mostly due to OTHER OPERATING REVENUES 0.8% reducing the number of employees.
Write-offs in 2010 amounted to 25,582.7 thousand EUR, of which depreciation
accounted for 94.1%, while revaluation operating expenses for fixed assets and COSTS OF ELECTRICITY PURCHASES 70.8% current assets accounted for 1.8% and 4.1%, respectively. They were 0.6% higher than planned. Mostly due to the higher depreciation, which is still mostly the consequence of high investment in previous years and conclusion of investment works in 2010, the write-offs in 2010 were higher for 5% compared to the previous year. OTHER MATERIAL AND SERVICE COSTS 8.9%
Other operating expenses realised in the amount of 775.4 thousand EUR, were lower LABOUR COSTS 10.8% than the planned ones for 17.9% and for 37.1% lower compared to the year of 2009, mostly due to smaller provisions for severance payments and loyalty bonuses. WRITE-OFFS 9.2%
OTHER OPERATING EXPENSES 0.3% Interest expenses on loans raised (62.3%) and impairment expenses (30.9%) accounted for the highest proportion of financial expenses, which totalled 5,970.4 thousand EUR in 2010. The impairment expenses were realised in the amount of 1,842.4 thousand EUR in 2010, based on the implemented financial instrument due to the impairment of domestic currency compared to the Swiss francs. The interest expenses from operational obligations were lower for 47.5% compared to the year 2.8. Financial Property Position of 2009, mostly due to the smaller volume of investments and bank loans for the financing of current operations as well as to the decrease of prescribed interest rate of default interests. As at 31 December 2010, the balance sheet total of Elektro Ljubljana d.d. was 488,074.3 thousand EUR, which is an increase of 1.6% over the previous year. Other expenses in 2010 amounted to 3,408.9 thousand EUR and were much higher compared to the ones realised in 2009, because of the return of the overcharged electricity consumption to household customers in the amount of 3,264.6 thousand ASSETS EUR. Non-current assets represent 84.9% of the Company’s total assets. Considering the balance at the end of 2009, their share in total assets decreased for 2.6 percentage points.
The largest item of the non-current assets are tangible fixed assets (accounting for 83.7% of total assets), which decreased for 1.6% considering the balance at the end of 2009. The decrease is the result of the transfer of fixed assets, financed from the funds
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of the average connection costs, acquired in the period from 1 July 2007 to 31 December due in 2012 is recorded in the non-current accrued costs and deferred revenues, and 2009, into the ownership of SODO d.o.o. The exclusion of these assets was performed the half that becomes due in 2011, in the current accrued costs and deferred revenues. according to the condition on 31 August 2010 in the amount of 8,212.9 thousand EUR. The balance of provisions for loyalty bonuses and severance pays decreased for 8.6% compared to the balance at the end of the year of 2009. Intangible fixed assets and non-current deferred costs and accrued revenues increased for 18.6% compared to the balance at the end of the year of 2009, which is mostly due Non-current liabilities increased for 36.8% in 2010, because of increased non-current to the increase of the non-current deferred operating costs from the collection of data debts. In 2010, the Company took out long-term loans for the financing of investments on the electricity distribution network, programme support for the field of purchases in the amount of 15,000 thousand EUR and for the purpose of reprogramming short- and sales of electricity and renewal of the integrated information system. term loans, in the amount of 24,300 thousand EUR.
Non-current financial investments decreased for 7.1% until the end of 2010, mostly With the changed maturity of financial sources, the long-term coverage of non-current because of the revaluation of the investment into the Zavarovalnica Triglav. assets improved, which amounted to 91.1% at the end of 2009 and 97.6% at the end of 2010. Compared to the balance at the end of the year of 2009, current assets increased in 2010 for 15.4%, mostly due to the increase of the current operating receivables and Current liabilities decreased for 10.8% compared to the balance at the end of the year current deferred costs and accrued revenues. of 2009, which is a consequence of reduced current operating liabilities, which were lower for 18.1% compared to the year of 2009. Current financial liabilities increased The balance of the current operating receivables increased for 16.7%, mostly due for 7.6% because of a larger transfer of the long-term portion of loans, which becomes to the increase of receivables from SODO d.o.o. However, in 2010, the increase of due in the following year. excise duties and introduction of the contribution for the increased efficiency of the electricity use also influenced the increase of receivables. Current accrued costs and deferred revenues, which in the balance on 31 December 2010 amounted to 855.1 thousand EUR, decreased for 82.2% compared to the balance The balance of inventories decreased for 26.9% in relation to the balance on 31 on 31 December 2009, because of the reduced penalty of the Competition Protection December 2009. Office and closing the deal on the implemented financial instrument. However, the balance at the end of the year of 2010 includes pre-calculated costs from the account Current deferred costs and accrued revenues increased for 160.8% in 2010, namely adjustment of the consolidated sub-group, half of the account adjustment of the because of the estimated account adjustment for the regulatory year of 2010 and regulatory period of 2004 – 2009 and pre-charged revenues. account adjustment of derogations for the purchase of electricity losses.
2.3% 3.2% 45.5% 46.1% TOTAL ASSETS, LIABILITIES LIABILITIES AND EQUITY AND EQUITY AS 11.4% 13.1% AT 31 DECEMBER 2010
The proportion of capital in the total structure of liabilities and equity amounted to Land and building 16.5% 17.1% 53.9% on 31 December 2010 and had decreased for 0.6 percentage points compared Plant and equipment to the balance at the end of the year of 2009. Operating receivables
69.8% 66.6% Other assets Non-current accrued costs and deferred revenues decreased for 10.9% because of 54.5% 53.9% the transfer of fixed assets, financed from the funds of average costs of connection to Equity SODO d.o.o., whereby the non-current accrued costs and deferred revenues from the Liabilities fixed assets acquired free of charge increased for 10.4%.
13 Act determining the methodology However, in the balance of 31 December 2010, half of the account adjustment for the for the calculation of network charge and methodology for setting the regulatory period of 2004 – 2009 was also recorded among the non-current accrued network charge, and the criteria for determining eligible costs for costs and deferred revenues, which was entirely, namely in the amount of -996.1 electricity networks, Official Journal thousand EUR included in the profit or loss of 2010. According to the network act, RS, no. 59/2010, Annex 1, Chapter which lays down that the account adjustment for the regulatory period of 2004 – 2009 I/2.8 31. 12. 2009 31. 12. 2010 31. 12. 2009 31. 12. 2010 is to be divided between the years of 2011 and 2012 by halves13, the part the becomes
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INVESTMENT RATIOS PERFORMANCE INDICATORS FOR THE PERIOD OF 2006 – 2010 The fixed asset investment ratioshows fixed assets as a proportion of the Company’s INVESTMENT RATIOS 2006 2007 2008 2009 2010 total assets. At the end of the year of 2010, the fixed asset investment ratio decreased Fixed assets investment ratio = fixed assets (at net book value) 0.878 0.872 0.869 0.864 0.837 by 2.7 percentage points over 2009, due to the transfer of fixed assets, financed from / assets the funds of the average connection costs, acquired in the period from 1 July 2007 to Financial investment ratio = sum of non-current and current 0.008 0.008 0.007 0.007 0.006 31 December 2009, into the ownership of SODO d.o.o.. financial investments and investment property / assets Non-current investment ratio = sum of fixed assets and non- The financial investment ratio indicates the proportion of the Company’s fixed current deferred costs and accrued revenues in (at net book 0.886 0.882 0.879 0.875 0.849 assets that generate finance income. The value of the indicator stood at 0.006 at the value), non-current financial investments, investment property and non-current operating receivables / assets end of 2010, meaning that 0.6% of the Company’s assets are in the form of current and non-current financial investments. FINANCING RATIOS 2006 2007 2008 2009 2010 Self-financing ratio = equity / total liabilities and equity 0.685 0.631 0.584 0.545 0.539 The long-term investment ratio shows non-current assets as a proportion of the Non-current financing ratio = sum of equity, non-current debt, Company’s total assets. The ratio is down 2.6 percentage points on the previous year non-current provision and non-current accrued costs and 0.833 0.799 0.797 0.797 0.829 on account of higher current operating receivables and current deferred costs and deferred revenues / total liabilities and equity accrued revenues. HORIZONTAL FINANCIAL STRUCTURE RATIOS 2006 2007 2008 2009 2010 Equity to fixed assets ratio = equity / fixed assets 0.780 0.724 0.672 0.630 0.644 (at net book value) FINANCING RATIOS Quick ratio = liquid assets / current liabilities 0.001 0.000 0.001 0.001 0.003 Accelerated liquidity ratio = sum of liquid assets and current The self-financing ratio indicates the proportion of self-financed assets. It reflects the 0.637 0.552 0.602 0.591 0.774 receivables / current liabilities level of financial independence, and thus the level of financial security. The value of Current ratio = current assets / current liabilities 0.680 0.589 0.630 0.613 0.792 the ratio was 0.539 as at 31 December 2010, meaning that over 50% of the Company’s EFFICIENCY RATIOS 2006 2007 2008 2009 2010 assets are financed by the equity of the Company’s owners. The decrease inthe Operating efficiency ratio = operating revenues / operating proportion from the previous year is primarily the result of increased non-current 1.025 1.003 1.027 1.008 1.016 expenses financial liabilities. Overall efficiency ratio = revenues / expenses 1.033 1.004 1.001 1.004 1.005 The non-current financing ratiostood at 0.829, meaning that the Company finances PROFITABILITY RATIOS 2006 2007 2008 2009 2010 82.9% of its assets via long-term sources. The proportion of non-current liabilities and Net return on assets (ROA) = net profit or loss / average assets 0.025 0.003 0.000 0.002 0.003 equity in total liabilities and equity increased for 3.2 percentage points compared to Net return on equity (ROE) = net profit or loss for the financial the previous year, due to the increased non-current financial liabilities. year / average equity (excluding net profit or loss for the 0.036 0.004 0.001 0.004 0.005 current year) Dividend to share capital ratio = dividends paid during the 0.015 0.010 0.002 0.000 0.000 HORIZONTAL FINANCIAL STRUCTURE RATIOS financial year / average share capita
ASSET MANAGEMENT RATIOS 2006 2007 2008 2009 2010 The equity to fixed assets ratio shows the relationship between equity and fixed Total assets turnover ratio = revenues / average assets 0.79 0.73 0.68 0.65 0.60 assets, and indicates to what extent the Company’s fixed assets are financed by the Receivables turnover ratio (RTR) = operating revenues / Company’s equity. The value of the ratio increased for 1.4 percentage points in 2010, 7.61 6.62 5.88 5.63 4.78 average operating receivables mostly due to the decreased Company’s fixed assets. Inventory turnover ratio = operating revenues / average 117.2 102.3 106.6 136.5 165.9 inventories The quick ratio indicates the level of current liabilities that the Company can settle on a given day with liquid assets. The ratio stood at 0.003 at the end of the year of 2010, meaning that, on 31 December 2010, the Company could settle 0.3% of current liabilities with cash.
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The accelerated liquidity ratio indicates whether the Company is able to cover ASSET MANAGEMENT RATIOS current liabilities with cash-on-hand and current receivables. On 31 December 2010, the Company had a significantly higher coverage compared to the previous year (for The total assets turnover ratio denotes the turnover of total assets in a year, and 18.3 percentage points) due to decreased current operating liabilities and increased shows the profits generated by the Company with existing assets. The higher the current operating receivables. ratio, the more efficient the management of the Company’s total assets. At the end of the year of 2010, the ratio amounted to 0.60 and had decreased for 8.4% compared The current ratio reflects the coverage of current debt by cash and other current to the previous year, mostly due to lower revenues from electricity sales and lower assets, including inventory. At the end of 2010, the current ratio was higher for 17.9 capitalised own products and services and increased Company’s assets. percentage points compared to the previous year, because of the increase of current assets and decrease of current liabilities. The receivables turnover ratio (RTR) shows the time it takes to collect accounts receivables in a year. The ratio shows the Company’s efficiency in collecting receivables, as well as customers’ ability to pay. At the end of the year of 2010, the EFFICIENCY RATIOS ratio was 4.78, meaning that payments were made in 76 days on average, i.e. on average 11 days compared to the previous year. The decrease of the ratio is mostly due The operating efficiency ratio is the proportion of operating revenues to operating to the lower revenues from the electricity sales and lower capitalised own products expenses that indicates the Company’s efficiency, as it excludes finance income and and services and increase of current operating receivables. costs, as well as other revenues and expenses. If the value of the ratio exceeds 1, this means that the company operates efficiently, as operating revenues exceed operating The inventory turnover ratio shows how many times a year the inventory turns over expenses. The ratio in 2010 amounts to 1.016, while the operating efficiency increased in the company. A high ratio will show good inventory management and fast inventory for 0.8 percentage points compared to the previous year. turnover, which also affects cash flows. As at 31 December 2010, the ratio was 165.9, meaning that inventory was held in the Company for an average of 2.2 days, i.e. half The gap between revenues generated and expenses incurred is best reflected by the a day less compared to the previous year. overall efficiency ratio. The Company is deemed to successfully manage its owner’s assets if the value of the ratio is greater than 1, provided that it also records a net profit for the same period. In 2010, Elektro Ljubljana d.d. recorded a net profit, and the value of the ratio was greater than 1, meaning that the Company operated successfully. 2.9. Risk Management
PROFITABILITY RATIOS By the risk management, Elektro Ljubljana ensures stable operations and the achiev ement of the Company’s objectives. Net return on assets (ROA) indicates the proportion of profit generated by the Company from its own assets, and shows how successfully the Company managed its assets. In 2010, the ratio was higher than in the previous year, due to a higher realised COMMERCIAL RISKS net profit. Commercial risks affect the Company’s ability to ensure efficient and competitive By the risk The share of net profit that belongs to the Company’s owners is shown by return on operations. At Elektro Ljubljana, electricity purchases and sales are exposed to management, Elektro equity (ROE). This indicates how much net profit the Company generated with the significant risks. These risks derive from the very nature of our activities andthe Ljubljana ensures average equity invested in the Company. The ratio was higher than the year before underdevelopment of the electricity market in terms of insufficient transparency stable operations and due to a higher net profit. and liquidity. With futures contracts new risks appeared which result from the more the achievement of the demanding planning of required quantities of electricity and estimation of prices, Company’s objectives. Dividends as a proportion of share capital are shown by the dividends to share because of a longer time frame. capital ratio. In 2010, the Company did not pay out dividends. Quantitative risks arise due to quantitative differences between long-term forecasts and a subsequent purchase for an individual major customer or a group of small customers, and the newly estimated quantity to be purchased at revised prices. Other
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types of quantitative risks are the result of different products in the wholesale and retail new conditions and does not switch suppliers. Moreover, time differences may arise electricity markets, which is reflected in quantitative exposure. Additional quantitative between the actual exchange of a consolidated group and that envisaged in the contract. risks are the result of inaccurate short-term forecasts of turnover of consolidated sub- Commercial risks are also caused by maturity mismatches on the purchase and sale groups, and changes in the consumption of individual members of a consolidated sub- sides, the difference between actual and planned sales as the result of differences in group, which may be the consequence of network failure, meteorological influence intervals for reading at customers without metering devices by remote data capture, and changes in consumption by members due to technological or market requirements. with regard to the validity of concluded purchase and sale contracts, differences in the annual settlement balance between the purchased quantities considering the actual On the purchase side, we manage quantitative risks by limiting quantitative exposure realisation of buyers of the consolidated group and the sale considering the average in electricity purchases and sales and through appropriate forecasts of required daily quantities of buyers, major network failures, resulting in reduced sales and quantities, which take into account annual growth in consumption and anticipated increased differences between these quantities and forecasts, and early termination of market share. We manage quantitative risks in electricity sales contracts by defining contracts by customers. possible tolerance bands with regard to annual and daily consumption by customers and by calculating appropriate consumption premiums, through contractual provisions Other commercial risks on the purchase side are managed by appropriately assessing regarding the mandatory forecast and purchase of daily and yearly quantities, and by the costs of financing, matching average customer and supplier maturities, assessing the billing of quantitative deviations. possible additional costs in electricity purchases and through appropriate contractual force majeure provisions. We manage other commercial risks on the sales side via Price risks may arise due to the difference between the price of the long-term purchase contractual provisions regarding the application of new prices or exclusion from the of an individual electricity product, purchased to build a portfolio, and the market consolidated sub-group, by charging costs of financing, by adapting the statement of price of that product. Additional price risks are the result of differences between the sales quantities with regard to purchase quantities, and by contractually defining force forecasted form of price scheme and the current form of price scheme, adapted to majeure provisions, penalties and damages for early contract termination. the prices of the long-term, medium-term, short-term electricity purchases. Price risks also arise from uncertain electricity price forecasts which are used to decide on Regulatory and political risks arise from inappropriate changes to legislation, long-term purchases to build a portfolio for customers with contracts for an indefinite restricted sales prices, unclear or inadequate market rules and changing environmental period of time. Price risks are most affected by changes in the structure of generation legislation. We manage these risks through appropriate contractual provisions as sources, the energy balance of a particular price region, limitations on cross-border protection against changes to legislation, regulated prices and duties. transmission capacities, variability of prices of other energy products, weather, hydrology, refits to power plants and the current utilisation of transmission capacities. In 2007, we approached risk management more systematically. We carried out a detailed inventory of all the risks the Company faces, created models to assess them. We manage price risks on the purchase side by linking purchase prices to a liquid In 2008, we began to actively develop risk management software tools and in 2010 market, establishing partnerships for ensuring the appropriate derivative financial we successfully carried out a project for setting up a system for risk identification and instruments, and through appropriate price forecasts. On the sales side, price risks management. are managed by linking sales prices and prices charged for final customers’ quantity deviations to a liquid market. The project was based on 3 stages: Stage 1: Analysis of commercial processes of electricity purchases and sales, Liquidity risks arise from the lack of depth of the electricity market, its general Stage 2: Preparation of processes of risk identification and management, illiquidity, or the illiquidity of individual products and a significant difference between Stage 3: Creation of risk management documents. the supply and demand prices. The causes of liquidity risks lie in the structure and model of the market, failures of generating units or transmission capacities, and In the continuation of the project, we must create models for the management of exceptional weather conditions. individual risks, implement procedures in the commercial processes and adapt the software. We are trying to overcome the problem of poor liquidity in the wholesale market by selecting appropriate partners and by distributing purchase transactions over time. On the sales side, we mitigate liquidity risk by contractually defining the distribution of FINANCIAL RISKS purchase transactions over time. In Elektro Ljubljana, the objectives of the financial risk management are implemented Other commercial risks include all other risks specific to the electricity market. The already in the preparation of the planned financial statement. We regularly monitor first commercial risk is that, at the end of a contract, a customer fails toagree the realisation of objectives of the financial risk management and adopt measures
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if we sense a danger of their non-fulfilment. By mitigating financial risks, we seek We are exposed to the interest-rate risk, due to the important share of the loan to facilitate stable operations, control finance expenses within established limits and financing. We mostly conclude loan contracts based on the variable interest rates achieve long-term solvency. (EURIBOR, LIBOR), therefore our operations is greatly affected by the changing of interest rates on global financial markets. In 2010, the trend of increasing reference In today’s market, Elektro Ljubljana is exposed to high credit risk mostly because of interest rates began; however, we maintained a satisfactory level of fixed increases great quantity risks. These appeared in 2010 as a consequence of changing demands of of reference interest rates. By using the procedure for the selection of the most the buyers, who strongly change their needs for electricity, due to the economic crisis, advantageous creditor, when taking out and renewing loans, we are following the and are consequently changing the burdening diagram. The poor payment indiscipline objective of maintaining the same level of average interest rate of the taken-out loans. continued in 2010 and contractually agreed payment deadlines are often exceeded. With most of transactions, we reserved the right to the early repayment of the loan and Especially in the second half of the year, the number of bankruptcies, liquidations and to exchange a variable interest rate for a fixed interest rate, or vice-versa. Thereby we compulsory settlements has risen significantly among suppliers and customers. ensured ourselves a high flexibility at the servicing of debts.
In order to diminish these risks, we devoted a lot of attention in 2010 to the monitoring We were exposed to the currency risk because of having raised part of our loans in a of our debtors and tightening of the debt management policy. We introduced a foreign currency, i.e. in Swiss francs. By regularly monitoring the events on the foreign standardised work flow, whereby we provided the appropriate collection and exchange markets, we have established, the Swiss franc grew most strongly in 2010, and dissemination of information, definition of responsibilities and automated running we do not expect any further growth of the exchange rate and consequently no further of activities of responsible persons. At the conclusion of contracts with new major currency risk exposure. We systematically diminished this risk also by the strategy of customers, we prepare a credit rating, created according to our own methodology. not renewing current loans in this currency, but to raise new ones in domestic currency These ratings are used for new business partners prior to the conclusion of the contract instead; we did not raise any new loans in foreign currencies as well. and for the existing partners, when the existing contracts are renewed. If the buyer gets poor ratings, we include an additional premium in the sale price for the risk of the non-fulfilment of contractual obligations, acquire guaranties of parent or affiliated OPERATIONAL RISKS companies or, as a last resort, we demand also bills of exchange or bank guarantees. Operational risks are linked to the human factor and the possibility of malfunctions We demand that household customers have no unsettled obligations from the previous of the information systems. These risks are managed through appropriate staffing and supplies of electricity, before we conclude a new contract with them, which is training, and through the introduction of contemporary integrated information solutions. founded in the Special Conditions for the Conclusion of Electricity Supply Contract – Household Customers. In order to eliminate the risk of malfunctions of the information systems, we are renewing the information system, i.e. on the one hand, by our own development of In the case of the largest electricity consumers, their financial state is monitored business information system on the field of information support to the customer’s life also during the supply. If the credit ratings of the buyer deteriorate or if the media cycle and network and electricity charging, and on the other hand, by the planned publish information on the deteriorating financial position of our business partner, purchase of the established business information system. more attention is devoted to the recovery of debts from this partner. This means the facilitation of procedures in the recovery of debts process, which, in the worst case In addition to the renewal of the information system in 2010, measures are being scenario, can lead also to the termination of supply contract and cashing-in potential taken to separate the activities of purchases and sales of electricity, which requires the insurances. adaptation of the existing information system, engagement of staff in the Company and in Informatika d.d. and available financial funds for investment in the system. Elektro Ljubljana is also Elektro Ljubljana is also exposed to considerable liquidity risk, because of the This represents risk for the realisation in the desired time period. exposed to considerable seasonal movements of quantities and different payment maturities for electricity liquidity risk, because purchases and sales. Thereby, we are exposed to a mismatch of inflows and outflows Thereby, measures for diminishing risks related to the information resources are being of the seasonal as liquidity deteriorates in winter months. Also, the composition of our main suppliers regularly implemented, namely movements of quantities and customers is changing, which accounts for the difficulty in matching inflows and • annual penetration test, and different payment outflows in the first months of the financial year. By systematically planning the future • annual updating of the plan of continuous business operations, including check-ups, maturities for electricity cash flow based on the concluded contracts, we coordinate the adjustability of outflows • daily provision of security protections at different levels, purchases and sales. in relation to anticipated inflows and thereby control the liquidity. If necessary, we • daily monitoring of security events. control the liquidity by taking out bridging loans.
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At the expansion and reconstruction of the Trebnje DTS the works from 2009, when 2.10. Investments twenty 20 kV cells, two 110 kV transformer fields 2 and the Ivančna Gorica LDT were reconstructed and put in operation, continued. In 2010, electro-assembly works in the 110 kV transformer fields 3 and 110 kV Hudo 1 LTD field were performed, while in 2011, the Investments of Elektro Ljubljana amounted to 23.011,3 thousand EUR in 2010. works continue with testing and settings of protection and remote control on both 110 kV 94.3% of the investment plan for 2010 was realised, while investments were lower fields with the accompanying 20 kV transformer cell in the 20 kV switchyard. for 51.6% compared to the previous year. The construction works that started in 2009 on the 110 kV cable conduit Šiška DTS – Litostroj DTS, were concluded in the first half of the year of 2010. At the end of January ELEKTRO LJUBLJANA’S INVESTMENTS IN EUR MILLION 2010, a 110 kV cable for the implementation of the cable conduit was supplied. Our own INVESTMENTS INVESTMENT STRUCTURE IN % IN 2006 – 2010 team of workers, laid the cable in the route and connected it to the 110 kV CC fields 47.5 45.5 in the Šiška DTS and the Litostroj DTS. In August, an internal professional technical 11 41.9 42.2 10 Distribution network inspection of the cable conduit was performed. The cable conduit is connected to a 11 11 voltage in order to perform running and functional tests until the technical inspection. Distribution devices and 18 18 documentation 17 18 Other investments For the connection of the 110 kV cable conduit of Šiška DTS – Litostroj DTS, the 72 71 72 71 construction of new 110 kV CC field in the Šiška DTS started in January 2010. By 23.0 the end of March, all construction works in the field were concluded. The electro- 9 assembly works, namely the assembly of the primary switching and metering 24 equipment and the implementation of the secondary connections for the protection of 67 control and metering, were concluded in June 2010.
We began with the construction of the Škofljica DS after a special culture-protection permit was obtained in the last trimester of 2009. In the first half of 2010, the 2006 2007 2008 2009 2010 construction works on the structure were concluded, while the realisation of the contract for the supply of 20 kV cells and own-use equipment, was still ongoing.
DISTRIBUTION NETWORK By the end of March 2010, five chokes had been installed for the resonant grounding of the neutral point in the Grosuplje DTS, Ribnica DTS, Kočevje DTS (two chokes) In 2010, the following projects were carried out or being carried out on HV facilities: and Bršljin DTS. Functional tests of the installed equipment were performed in all the • Litostroj 110/20 kV DTS, above-mentioned DTSs and the chokes are already functioning. • expansion and reconstruction of the Trebnje 110/20 kV DTS, • 110 kV cable conduit Šiška DTS – Litostroj DTS, On the MV and LV network, investments were made in facilities, the primary role of • additional 110 kV CC field in the Šiška DTS and which is to increase the available power supply at certain points along the distribution • construction of the Škofljica 20 kV DS. network, on the basis of electricity approvals and contractual obligations, the connection of new customers, and the improvement of the power supply and supply of electricity to The Construction of the Litostroj DTS was physically concluded in 2010. The customers in accordance with regulations. Also included was the construction of primary construction includes construction works, supply and installation of 110 kV MV network lines between power supply regions and the reconstruction thereof. equipment for a GIS switchyard, 20 kV cells and all the remaining primary and secondary equipment for the facility. By the end of 2009, most works related to the In 2010, we mostly constructed the MV and LV structures by our own teams, except primary and secondary interior connections had been completed, while in 2010, the for construction works, which we outsourced to external contractors. finishing electro-assembling works were carried out, as well as testing of connections and settings and parameterisations of protection devices. In August 2010, an internal The physical extent of the investment realisation within the scope of investments in professional technical inspection of the structure was performed. The structure the MV and LV structures in 2010 includes: is connected to a voltage in order to perform running and functional tests until the technical inspection. • 37 new transformer stations, • 10 renewed or reconstructed transformer stations,
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• 65 installed transformers with the power of 25,000 kVA, Within the telecommunication infrastructure, the following optical connections • 82 km of constructed or renewed MV overhead or underground lines, were realised: Grosuplje DTS – Polje DTS, Vrhnika DS – Kozarje DS, Podtabor • 77 km of constructed or renewed LV network and LTD – Vrhnika DS, Črnuče DTS – Beričevo DTS, Radeče DTS – Trebnje DTS. The • 19 km of constructed cable sewers for the MV and LV waters. damaged OPWR cable was replaced (optical cable wound around the phase) on the relation between the Gotna vas DTS and Osojnik. A number of other smaller optical Among the MV and LV structures, the following, both physically and financially connections and access conduits, including supply systems for telecommunication larger independent investments were realised or undergoing in 2010: equipment, radio stations for contractors, SDH/FMX telecommunication system and equipment for the backbone network of WDM system were also realised. • renewal of the 20 kV Suha Krajina long-distance transmission and cable sewers for the 20 kV cable conduit Ugar – Struška and renewals of the Vintarji LVA and Rožnik LVA in the Kočevje DU; DISTRIBUTION DEVICES AND DOCUMENTATION • Cable conduits 10(20) kV on the relations Litostroj DTS – Sports park Stožice and Ljubljana Centre DTS – Zavarovalnica Miklošičeva TS, 10(20) kV connection Investments in 110/MV kV power transformers in 2010 include the supply of two 13.5 Atrium - Zelena jama, relocation of the 10 kV cable conduit in the area of MVA transformers for the Bežigrad DTS, and a 20 MVA transformer for the Žiri DTS. Avtomontaža Celovška, cable sewers on the Štajerska access road, DTS Šiška - Gimnazija Šentvid, Rakova jelša and DTS Vič – Gas plant Barje and transformer Investments in metering devices included the purchase of metering equipment for stations in the area of Sports park Stožice, TS Štepanjska 11a and TS office tower wholesale purposes and partially the purchase of metering devices for industrial BTC with the connecting 10(20) kV cable conduit and LV distribution cable and TS customers and the beginning of the realisation of the development project KIBERnet Lutkovno gledališče in the DU Ljubljana City; DSM and equipment for the purpose of AMR. • cable sewers within the 20 kV connection between the Cerknica DSP– Stari trg DS and Škofljica OIC within the 20 kV connection of Grosuplje DSP – Škofljica Investment and technical documentation for LV, MV and HV distribution facilities DS, cable sewer Topole and cable sewer Trzin Mengeška cesta, Hofer Kamnik that have not yet been included in the current investment plan represented the largest TS, Laze Kozlevčar TS, Hotovlja Kočar TS, Blagovica vas TS, Kobalov grič proportion of investment within the investments in the distribution devices and TS, Komenda Glavarjeva TS with the connecting 20 kV cable conduits and LV documentation. distribution cables and 20 kV cable conduit with cable sewer in Vrhnika between the Lošča TS and Janezova vas TS, implementation of cables in Dobračeva LVA, There were also investments in back-up equipment and distribution telecommunication the beginning of the construction of the dual cable conduit Kamnik DTS– Komenda devices; however, these were smaller values, which did not represent a significant PC and implementation of investment-maintenance works (IM) in supervisory units proportion of total investments. of Grosuplje, Domžale, Kamnik, Cerknica, Vrhnika and Žiri in the DU Ljubljana District; • construction of 20 kV cable conduits Gotna vas – Novo mesto West and Veselica OTHER INVESTMENTS TS – Vinogradniška TS in Metlika, renewal of the 20 kV long-distance transmission Štefan and 20 kV long-distance transmission Mirna Peč and Sevno below Trška Other investments in 2010 mainly comprised investment in the IT system, operational gora TS, Perudina TS, Pod smreko TS and Zemelj TS with connecting 20 kV cable facilities and land, transport equipment and inventory. conduits and LV distribution cables in the DU Novo mesto; • Cable sewer on the Titova cesta in Trbovlje, cable sewer Rinaldo – Čeče on the area Within the investments in the computer system hardware, we purchased the server for of Hrastnik within the simultaneous construction of the municipal infrastructure, electricity metering, three servers for the ESX environment for the needs of computer installation of cables in the 20 kV Sopot long-distance transmission, renewal of centre in the framework of regular replacements of the outdated equipment, SAN the long-distance transmission Sp. Prhovec, renewal of the LVA Močilno and LVA (Storage Area Network) switches for the Črnomelj DRC and two servers for setting Brnica and Podvibe T Sand renewal of Hospital TS in the Trbovlje DU. up the SQL cluster. In addition, we also purchased scanners for archiving permits, laptops, LCD monitors and desktop workstations. Within the energy distribution, the investments in the software and hardware in Elektro Ljubljana’s distribution management centre continued in 2010 (upgrading and On the field of the computer software, we purchased licences for the support of the modernisation), which were prolonged from the previous year because of delays. multi-functioning devices’ operation. According to the plan, the applicative integrable The realisation within the management and automation of the MV network includes modules on the field of the spatial information system (PISELJ) were concluded as the realisation of circuit breakers and disconnecting circuit isolators for 16 automated well as the digitalisation of executive plans. Functional upgrading of the applicative isolating points in the MV network. modules PISELJ was performed and the programme licence for the PISELJ mobile
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work was acquired. Aerial survey was performed for the data collection purposes. the creation of the new form of charging and support to the customer’s life cycle. In On the field of the mobile system for planning the work of work groups, PDAs were the framework of the renewal, we also prepared the public tender for the purchase purchased. Within investments in DRCs, the funds were intended for the purchase of and implementation of the business information system. Upgrading and maintenance the optical cable, replacement of doors and construction works. works related to the service equipment and desktop computer equipment was also carried out. We reached a greater usability of information systems, by different The realisation of works on office buildings in 2010 includes the finishing works in the levels of integration, depending on the needs and requests of the users. We provided construction of the DRC structure in Črnomelj, roof repairs on the auxiliary structures the quality of data by modern digitalisation approaches. On the field of the system of the DU Ljubljana City in Kotnikova Street, renewal of carpentry in supervisory of the protection of information management, we successfully and efficiently units and overhaul of toilets in Slovenska Street 56. implemented the required safety elements, according to the ISO 27001 standard. We intensively cooperated in the preparations and implementation of trainings from At the metering appliances, the realisation in 2010 includes the analyser for the control the IT field. of diffuse sources, manual readings terminal and control calibration instruments.
Within the transport means, all the planned funds were realised. We purchased nine cars, five pick-ups and one combined vehicle. 2.12. Quality Management At the inventory, the financial funds were spent mostly on the replacement ofthe outdated or damaged furniture, cooling and heating appliances and other inventory. Elektro Ljubljana, who was awarded the first certificate for standard from the ISO group already in 1999, in the following years continued with the regulation of individual larger operational fields according to the good practice principles, brought by the ISO standards. Therefore, in addition to the certificate for the standard ISO 2.11. Information Technology 9001 – Quality Management System, Elektro Ljubljana was also awarded certificates for the Environment Management, Occupational Health and Safety Management and Information Security Management standards, in the period from 2004 to 2006. The basis for the Company’s successful operations is effective IT user support that relies on the latest global trends and guidelines for the development of computer For five years now, Elektro Ljubljana has four larger operational fields regulated technology. Comprehensive IT services facilitate the Company’s optimal, secure and according to the ISO standards, namely: transparent operations and high-quality decision-making support. In Elektro Ljubljana d.d., we are trying to achieve the following goals: • ISO 9001 - Quality Management System, • providing highly accessible IT support for business processes, and preventing the • ISO 14001 - Environmental Management System, loss, disposal or misuse of data and information, • OHSAS 18001 - Occupational Health and Safety Management, • development and use of working tools with various databases used to monitor • ISO 27001 - Information security management. operations and support decision-making, • monitoring IT support performance indicators, From the very beginning of introducing good practice, brought by the ISO group From the very beginning • reducing maintenance costs through timely and prudent investments in IT standards, Elektro Ljubljana is trying to expand, develop and modernise the system. of introducing good equipment, Thereby, the year of 2010 is especially important, since we even more intensely practice, brought by the • modernisation of the shared integrated information system in cooperation with continued with the integration of systems and searching for positive synergy effects. ISO group standards, other electricity distribution companies and Informatika d.d.. Therefore, at the beginning of 2010, the Council for the Quality Management Elektro Ljubljana is Systems was established, who brought together separate councils for individual trying to expand, The information support for the operating processes of the electricity distribution systems. Authorised persons for individual systems were appointed as well as the develop and modernise is fully supported by the integrated information system, maintained and managed representative of the management for quality and members of the newly formed the system. by the company Informatika d.d. The scope and dynamics of work are determined Council for the Quality Management Systems, who were appointed from the in an annual contract, concluded every year between the Elektro Ljubljana d.d. and leading employees of all organisational and distribution units. The Council for the Informatika d.d.. In 2010, only urgent upgrading were performed on this system, Quality Management Systems is therefore composed of one representative of each because of the statutory requirements, while at the same time, the renewal of the organisational and distribution unit, authorised persons for systems and of the head existing information system continued, which includes, within our own development, of the Quality Service.
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The Council for the Quality Management Systems meets in regular meetings and place. In Elektro Ljubljana, individual processes were already identified and surveyed, discusses current subjects from different fields of the quality management system. The owners were appointed and instructions with indicators were prepared. Thereby, the knowledge and experience is thus transferred from one system to another, allowing a programme tool ARIS was used. uniform and balanced development of the systems. In July 2010, the 9th supplemented version of the Quality Rules was issued, Responsibilities of the representative of the management for quality are: representing the foundation of the quality system in the Company and at the same • initiating measures for the improvement of quality of the environmental time provides insight in individual activities, performed by the Company. management, occupational health and safety and information security and controls In 2010, the Portal of the Quality Management System, was established, where all their implementation, the new documents are promptly forwarded to the employees. • takes care of the implementation, maintenance and documentation of processes required for the quality system, In April and October 2010, detailed internal assessments were performed. The Annual • he makes decisions if necessary and can also stop implementation in the case of Plan of Internal Assessments was implemented from the three-year cycle of internal major inconsistencies in the process or service or non-compliance with the legal assessments, which began already in 2009. The new thing is that they were performed requirements from the field of environment, occupational safety and health and in a way that individual elements of the systems were checked at several points. The information security, result of such internal assessments was the transfer of good practice from one unit to • represents the Company in the sense of the quality system to owners, customers and another. business partners. In September 2010, an external assessment took place, performed by external There are committees for quality operating at all levels of the Company within assessors SIQ. In 2010 regular external assessments were performed for all four the quality management system. Formally, the subjects related to the quality systems. The main finding of the external assessment was that Elektro Ljubljana d.d. management systems are discussed at meetings (regularly or periodically, according has an appropriate integrated quality system. The Company implements, maintains to the meeting agenda) as one of the regular items of the meeting and are included and develops the quality management system according to the standard requirements. in minutes. For the Company, recommendations given within the external assessment represent a possibility of finding new improvements and opportunities at the development of the The task of the authorised persons is to monitor and implement tasks related to the quality system. appropriate standard. Authorised persons meet once a month and review novelties within the standard and report thereof to the President of the Management Board (representative of the management for quality), executive directors of organisational ACTIVITIES RELATED TO THE OCCUPATIONAL HEALTH AND SAFETY units, directors of distribution units and members of the Council for the Quality MANAGEMENT SYSTEM Management Systems. They meet with the heads of programmes, operating within each standard, at least four times a year. Due to the saving measures of the Company, the reduction of risks programmes for 2010, were slightly diminished. Despite that, we were active in all seven reduction-of- risks programmes, with the emphasis on our own work: ACTIVITIES RELATING TO THE QUALITY MANAGEMENT SYSTEM The year of 2010 was a 1. A programme to reduce work-at-height risks, turning point after more The year of 2010 was a turning point after more than a decade, because the Council for 2. A programme to reduce risks of arc flash on electrical systems, than a decade, because the Quality Management Systems was established, enabling a uniform development 3. A programme to reduce risks due to electric arcs on electrical equipment, the Council for the of individual systems and transfer of advantages from one system to another. 4. A programme to reduce risks associated with road traffic Quality Management 5. A programme to reduce risks associated with office work Systems was The basic standard, regulating the quality management systems is ISO 9001, which 6. Review of fixed assets, established, enabling a is primarily oriented towards the regulation of operations in order to satisfy users 7. Control of field works. uniform development of (internal and external). At first, the standard prescribed formal forms of documents. individual systems and However, by the ISO 9001:2008 standard, the direction towards the implementation In 2010, four dangerous occurrences were reported and discussed in the Council transfer of advantages of legal requirements and procedural approach was confirmed. The transitional period for the Quality Management Systems. For each problem, we found a solution with from one system to for the total transposition of the ISO 9001:2008 was set by October 2010, however our minimal costs. another. Company implemented it by the end of September, when the external assessment took
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ACTIVITIES RELATED TO THE INFORMATION SECURITY MANAGEMENT SYSTEM Development projects are carried out at the individual organisational unit level, while Development projects important for the strategic development of the Company are carried out at the projects are carried In 2010, the Information Security Management System ISO 27001:2005, became an Management Board level. out at the individual integral part of the operations of the Council for the Quality Management Systems, organisational unit and was thereby incorporated in the quality management system of Elektro Ljubljana. level, while projects In addition to cooperating in the Council for the Quality Management Systems, other BUSINESS PLANS AND STRATEGIES important for the activities were also performed, related to the ISO 27001:2005 standard. strategic development The Development Plan for 2010 did not anticipate any activities in the field of business of the Company are Therefore, the risk analysis of information means was performed under the already plans and strategies. In the second half of the year of 2010, we started with necessary carried out at the adopted and established methodology. The risk assessments 7 or 8 were given to two activities for the division of the activity of electricity purchases and sales and its Management Board information means, for which the “Programmes of Development and Implementation transfer to the subsidiary and we adapted operations of the parent company. level. of Information Security” were created already within the previous analysis. In 2010, most of the activities on the information security programmes were implemented. ELECTRICITY ANALYSES Verification of the appropriate functioning of the information security management system was performed in the scope of internal assessments. Recommendations were All electricity analyses needed to connect new facilities to the existing electricity made, mostly relating to the establishment of awarded applications. distribution network were carried out in accordance with the distribution network development plan and estimated investment potential. Due to the decrease of investment In August 2010, internal assessors of Elektro Ljubljana d.d. performed an assessment funds for the network development and increased volume of investment of private in the affiliated company Informatika d.d., whereas the findings of the assessment investors in the construction of photovoltaic power plants, the structure of performed represent the opportunity for mutual quality cooperation. analyses slightly changed in 2010, namely in the direction of the significant increase of analyses for the purpose of connecting new sources to the distribution network. Based on the external assessment, recommendations were given and inconsistencies eliminated or taken as an opportunity for further development of the standard. NETWORK AND COMPONENT PLANNING STUDIES In 2010, the education of employees on the application of standard ISO 27001:2005 mostly took place through articles published in the internal publication, which were aimed at Network and component planning studies are most closely linked with the development educating employees in individual fields of the information security management system. and operation of the electricity distribution network and its elements, and the design of technical regulations and standardisation. These studies provide support for the The activities in the Environmental Management System are further presented in planning of technological and business systems, and present one of the basic starting Chapter 3.3., Concern for the Environment. points for the Company’s ten-year network development plan on the area of Elektro Ljubljana. They are mostly prepared by the faculties and specialised institutes in cooperation with the Company experts.
2.13. Planning and Development TECHNOLOGICAL SYSTEMS PLANNING
In terms of technological systems planning, 2010 was mostly marked by large-scale In terms of Planning and development in 2010 were conducted in accordance with the 2010 projects relating to functional IT support and the quality supply of electricity to all technological systems Development Plan, which stipulates development projects categorised in the following customers. planning, 2010 was groups: mostly marked by • business plans and strategies, The project Development of Infrastructure Support for Managing Quantity large-scale projects • electricity analyses, Aggregation, the Forecast of Consumption and Analysis of the Portfolio of the Elektro relating to functional IT • network and component planning studies, Ljubljana Consolidated Sup-Group was only partially realised in 2010. The project is support and the quality • technological systems planning, anticipated to be concluded in the first quarter of 2011. This support shall be the basis supply of electricity to • business systems planning. for effective and quality operations regarding future electricity purchases and sales. all customers.
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A systematic installation of metering equipment in distribution network nodes, where the anticipated conditions were outside the prescribed or recommended parameters of STRUCTURE OF ELEKTRO the electricity quality, is being conducted as part of the System of Constant Monitoring LJUBLJANA’S EQUITY AS AT 31 DECEMBER 2010 of the Quality of Electricity. This project was concluded in 2010 and activities were REPUBLIC OF SLOVENIA 79,5% transferred to the regular work of competent services.
As part of the project of the Construction of Elektro Ljubljana DMC, all main testing was performed in 2010 and certain deficiencies of individual programme modules eliminated. Thereby, this project was concluded.
OTHER LEGAL ENTITIES 18,8% As regards our technological systems, we are following our vision by implementing various energy efficiency projects, implementation of technology for electric vehicles and developing cogeneration and renewable systems. NATURAL PERSONS 1,7%
BUSINESS SYSTEMS PLANNING
The focus of the work in the scope of business systems development planning was The Company’s largest shareholder is the Republic of Slovenia, with a 79.5% on projects relating to operations with network users. Within the project Energy participating interest, while the five largest shareholders hold 91% of all shares. Efficiency through Consumption Control, everything was prepared for the market implementation of the service in the commercial supply segment, based on the previously established lab test environments at some commercial customers. In 2010, THE FIVE LARGEST SHAREHOLDERS IN ELEKTRO LJUBLJANA AS AT 31 DECEMBER 2010 we introduced a new service of this type for household customers. Shareholder Participating interest
In 2010, an integral system of risk identification and management was set up within Republic of Slovenia 79.50% this project, on the field of purchases and sales of electricity. KD Kapital d.o.o. 5.92%
Triglav vzajemni skladi - delniški 2.63% Within the projects of Introduction of work with Live Equipment and Establishment of Training Centre, activities were performed for the implementation of safe work G.I. Dakota Investments Limited 1.65% of employees with live equipment and establishing conditions for the transfer of this Probanka d.d. 0.94% knowledge. Total 90.64%
2.14. Information for Shareholders 2.15. Significant Events after the end of the Business Year Elektro Ljubljana, podjetje za distribucijo električne energije, d.d. has been registered as a public limited company since 4 June 1998. The Company’s share capital, amounting to 163,412,977.80 EUR, is divided into 39,160,286 freely transferable New fees for providing reliable electricity supply by using ordinary registered no-par-value shares. All shares are of the same class. indigenous primary energy fuel sources for the electricity production in 2011 The book value per share as at 31 December 2010 was 6.72 EUR, up 0.5% on 2009. Having issued the Decision Laying Down the Fee to Support the Reliable Electricity At the end of 2010, Elektro Ljubljana had a total of 1,224 shareholders, including 70 Supply by Using Indigenous Primary Energy Fuel Sources14, the Government set the 14 Official Journal RS, no. 110/2010 legal entities and 1,154 natural persons. The number of shareholders in 2010 increased average monthly fee of 0.06745 EUR/kW of capacity to be paid as of 1 January 2011. by 3 in comparison to the previous year.
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3 Corporate Social Responsibility
There are people, who give me power. They give me joy, enthusiasm and passion. They make me a better person. These are two of them. I draw energy from here.
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On average, 1,013 workers were employed in 2010, whereas their average age was 41 3.1. Concern for Employees year. The gender structure is 82% (men) and 18% (women).
Our corporate social In 2010, the Company followed the direction of providing quality staff within the EMPLOYEE AGE STRUCTURE responsibility is also Company, quality and efficient system of staff development, providing healthy and AS AT 31 DECEMBER 2010 manifested through our safe work environment and promoting training of employees, since only qualified responsibility towards and creative workers with a sense of belonging to the Company can provide us with ABOVE 55 YEARS 9% UP TO 30 YEARS 15% our employees and the competitiveness in difficult and quickly changing conditions. 51 TO 55 YEARS 12% their families. Our corporate social responsibility is also manifested through our responsibility 31 TO 40 YEARS 30% towards our employees and their families. We have continued our activities within the Family-Friendly Company initiative with the aim of acquiring the full Family- Friendly Company certificate in 2012.
41 TO 50 YEARS 34% EMPLOYMENT AND EDUCATION
Due to the rationalisation of labour costs, the Company limited the hiring of outside workers and only exceptionally approved the employment in those fields, which had no appropriate staff, which could be transferred. The Company already reached the planned number of employees for 2010. On 31 December 2010, there were 984 employees, 44 The globalisation, rapid technological development, informed market and customers and Employees, equipped less than the year before. fierce competition lead to inevitable changes. The changes happen faster and faster and are with appropriate becoming ever more complex, which requires flexibility from the companies as well as the knowledge and In the whole year, 9 workers were newly employed, namely 23 less than the year before. A ability for predictions and fast and appropriate response to changes. Employees, equipped skills are of strategic total of 53 posts were vacated, mainly due to retirement. Their work was redistributed among with appropriate knowledge and skills are of strategic importance and surely one of the key importance and surely other workers, whereby the work optimisation and rationalisation of labour costs increased. factors for the competitiveness and success of the Company as a whole. Only an employee one of the key factors We promoted the mobility of our workers by internal publications of job vacancies. who permanently acquires new knowledge can adapt to changes. Throughout its history, for the competitiveness Elektro Ljubljana successfully defies the competition and globalisation impacts, mostly and success of the by relying on new knowledge, with innovativeness and motivation of the employees. Company as a whole. CHANGES IN THE NUMBER OF EMPLOYEES AS In the Company, we nurture the culture of permanent learning with different ways of AT 31 DECEMBER FROM 2000 – 2010 transferring values: we provide access to knowledge to all employees, promote formal and functional education, provide all legally required trainings, promote the internal transfer of knowledge between employees at all levels and connect ourselves with 978 959 956 951 971 983 979 1004 1027 1028 984 educational institutions. Within the functional education, our employees acquire general business skills and knowledge from specialised areas, such as electrical engineering, IT, foreign languages and statutory occupational health and safety courses. Within the formal education, we provide part-time study to those employees without appropriate education.
In 2010, we recorded 1,009 participants of educations, whereby 65% of employees were included in the education. A total of 16,297 hours were devoted to training during working hours, averaging 16.1 h per employee.
In 2010, we devoted 170 thousand EUR (entrance fees and tuitions) or on average,
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 168 EUR per employee. Compared to the previous year, there was for 123.4 thousand EUR less funds.
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perspective staff. We shall provide education to employees in general and specific Our basic goal in 2011 EDUCATION COSTS PER fields and provide all the necessary trainings according to law and other regulations. is to follow quality and EDUCATIONAL AREA IN 2010 COMPUTER SCIENCE 5% We shall establish the first training centre in Domžale and promote internal transfer of efficient system of knowledge from older to younger workers, from more experienced to less experienced, staff development. We FOREIGN LANGUAGES 6% from already employed to newcomers. We shall strive to acquire European funds for are aware that we can the projects on the field of staff development. We shall continue our activities within achieve our strategically PART-TIME STUDY 14% BUSINESS SKILLS 39% the Family-Friendly Company initiative with the aim of acquiring the full Family- set goals only by Friendly Company certificate in 2012. the efficient human resources management.
SAFETY AT WORK 18% OCCUPATIONAL HEALTH AND SAFETY
ELECTRICAL ENGINEERING 18% Safety at work training
In accordance with the law, we carried out internal occupational health and safety and fire safety training courses for the employees as well as secondary school and university students, who performed their mandatory practice in our Company.
Besides periodic internal training, we organised additional functional training courses AVERAGE EMPLOYEE MASTER’S DEGREE 2,1% from specific fields of providing safety at work. EDUCATIONAL STRUCTURE UNSKILLED 2,7% IN 2010 SEMI-SKILLED 2,5% HIGH EDUCATION 16,1% Personal protective equipment SKILLED 22,3% According to the saving measures, we only handed out personal protective equipment HIGHER EDUCATION 17,0% to our field workers. We also equipped work groups, who carry out felling with appropriate personal protective equipment.
SECONDARY SCHOOL 37,4% Medical examinations and health care
We provide periodical medical examinations to our employees. In addition to periodical medical examinations, we also provide our employees with free ophthalmological consultation. In winter-spring period, preventive vaccinations against tick-borne meningitis and regular flue were performed.
The Company gives scholarships to 14 secondary school or university students. We enabled 97 secondary school and university students to upgrade their theoretical Periodic checks and tests of work equipment knowledge with practical experience and to gain new skills. Pursuant to the prescribed schedule, we provide periodical checks of work equipment Our basic goal in 2011 is to follow quality and efficient system of staff development. in different locations. We are aware that we can achieve our strategically set goals only by the efficient human resources management. We plan an additional reduction in the number of employees by the end of 2011. Our need for workers, due to the reduced number of employees and transfer of electricity purchases and sales to the subsidiary, shall be resolved with internal transfers. We shall take care of career development of key and
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Workplace accidents 3.2. Concern for Other Publics In 2010, we recorded 34 workplace accidents, thereby:
In the pursuit of its business objective, Elektro Ljubljana strictly follows the principle In the pursuit of its • 25 accidents at work and 9 accidents on the way to or from work, of social responsibility for several decades now, which is reflected in the concern for business objective, • one accident was related to electric current (arch flash), its customers and broader social environment. In 2010, the Company continued with Elektro Ljubljana • the frequency of injuries was 3.4%, while the seriousness of injuries amounted to the already set activities and prepared a few new ones. strictly follows the 50.7 lost days per injury, whereby the absence due to injuries in the previous year principle of social was also considered. For over twenty years, Elektro Ljubljana advises, informs and raises awareness of its responsibility for customers about the efficient use of electricity and renewable energy sources. At the several decades now, which is reflected in Monitoring the implementation of occupational safety measures beginning, since 1991 in the form of pamphlets with advices for household customers and in the last years, with activities carried out within the consulting office, web-site the concern for its publications, with forwarding of information to media, with new services as well as customers and broader Also in 2010, we performed unannounced alcohol tests on the workplace and in other ways. In the framework of consulting for efficient electricity use, promotional social environment. unannounced control of filed works were performed as well. consulting was organised for the first time in 2010 at the occasion of the World Energy Saving Day, with practical demonstration of electricity consumption metering of Revised health risk assessment different appliances and options of monitoring our own electricity consumption. The event got positive responses, both by the customers and by the media. The Company shall certainly continue with similar consulting projects also in the future. The department of occupational medicine provided us with the new health risk assessment for individual work posts, according to the systematisation. The time gap For more than a decade, we have also cooperated with a number of primary and between periodical medical examinations was prolonged at some work posts. secondary schools in the area of Elektro Ljubljana. Professionals from Elektro Ljubljana demonstrate the equipment, structure, products and services related to electricity, the profession and Company itself and thereby inform, educate and train FAMILY-FRIENDLY COMPANY ever new generations of young people, their teachers and indirectly, their parents. In 2010, the Company expanded its activities to the youngest in kindergartens. We have continued our Our corporate social responsibility is also manifested through our responsibility towards activities in 2010 to our employees and their families. We have continued our activities in 2010 to successfully In 2010, The Company continued with the sponsorship of modern art on the successfully introduce introduce the measures set within the Family-Friendly Company Certificate and achieve premises of the City Power Plant – Elektro Ljubljana, owned by the Company and the measures set the aim of acquiring the full Family-Friendly Company certificate (in 2012). The flexible mostly intended for the performing arts. In the building, artists mostly practice and within the Family- work hours and possibility of using additional days off work is a central field, where the perform. The company also supported artists in two cultural-artistic Elektro Evening, Friendly Company Company showed sensitivity for the employees, who try to coordinate their work and which gives young artists the opportunity to present themselves to a broader public Certificate and achieve family obligations. A special attention was devoted to the family-friendly practice, which and helps them to become established artists. Thus, the sixth year of Elektro’s Evening the aim of acquiring enables flexible work hours to the employees, when a child first goes to kindergarten was successfully held in 2010. the full Family-Friendly and of course an option for the parent to spend the first day of school with his youngest Company certificate. children. In the previous year, a survey was conducted among the employees on how to Because of the limited financial funds, the Company in 2010 supported a great deal less coordinate work and family, where 12% of the employees participated in. Most of the of humanitarian projects with donations compared to previous years. We still supported respondents felt that they work in a family-friendly company. and cooperated with the association Društvo za pomoč trpečim in bolnim – Rdeči noski at visiting sick children in hospitals. We also continued our cooperation with It is a traditional practice in the Company to buy New Year gifts for employees’ children. the association Društvo Jasa at the publishing of books with environmentally-friendly We devoted a special attention to the youngest children in the Children’s Week with the contents. We also supported some other minor projects, organisations and individuals. children’s corner. Following the needs of our customers, for environmental protection and following The Company partially finances supplementary pension insurance to the employees. It the development of this field, the Company joined the activities for setting up enables preventive medical examinations to the employees, vacation in holiday facilities the infrastructure for electric-vehicle charge points. On 23 September 2010, with advantageous conditions and recreation in the Sports Centre Elektra Ljubljana.
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Elektro Ljubljana opened up the first public electric-vehicle charge point on the City The Company’s environmental policy is governed by the following principles: In our Company, Municipality of Ljubljana territory. Currently, Elektro Ljubljana enables charging of we are well aware electric vehicles in seven charge points – six in Ljubljana and one in Vrhnika, while we • Pollution prevention and better preservation of raw materials and natural sources; of the importance plan to double this number by the summer of 2011. Electricity from all charge points is • Good management of waste and hazardous substances; of environmental acquired strictly from own renewable energy sources – Green Energy. Elektro Ljubljana • Reducing adverse effects on the environment; protection, which is shall supplement the infrastructure of charge points proportionally to the expanded use • Preparedness and quick reaction in the case of accidents; why our environmental of electric vehicles in Slovenia, while at the same time, it offers the possibility of setting • Obligations from the environmental policy are forwarded to all, who work for or on policies are integrated up charge stations to all the interested investors. Elektro Ljubljana supplies electricity behalf of the Company; into the Company’s free of charge at all its charge points, expectedly until the end of 2011. • Ensuring compliance with applicable laws; general management • Increasing environmental awareness among the employees; and operating In the field ofmedia , the Company follows the principle of openness, proactivity and • Communication within and outside the Company on information related to the guidelines. transparency, according to the Media Act. At events, important for the Company’s environmental management; operations, the media received press releases, which are also published on our web • Continuous improvement of environmental management processes by framework site. At the end of the financial year, we organised a press conference and meeting and implementing environmental objectives. with press and we promptly sent answers to the set questions to the media. According to the Company’s vision, the Company continued with the construction The Company experts presented themselves to a broader electro-energetic profe of renewable energy sources or electricity production from cogeneration with high ssional public with professional contributions in different professional events and efficiency. importantly contributed to development and progress of the branch. A great emphasis in the overall efforts for the environmental conservation is placed In order to confirm our concern for the broader social environment, we should mention on the energy consulting. Energy inspections of the Company’s own structures and that at the end of 2010, there was a Charity New Year action in the Company called the implementation of measures of efficient energy use represent the basis for further the Elektro Ljubljana Staff to Children. A very good response from the employees development of services in this field. showed that they themselves feel the concern and solidarity with the environment in which they work. The toys and books collected in the action were donated to some In 2010, we performed several actions of raising awareness of the interested public on organisations and establishments, which take care of materially deprived mothers the efficient energy use and renewable energy sources. The most popular was probably with children. the action at the occasion of the World Energy Saving Day in Ljubljana.
We also devote a lot of attention to the young people. We perform different presentations and lectures in primary schools and kindergartens and organise visits to certain electricity production sources, mostly of small hydroelectric power plants, 3.3. Concern for the Environment managed by our Company. These visits are extremely well accepted among the young.
Elektro Ljubljana d.d. continues with the marketing of the trade mark Green Energy, CONCERN FOR THE ENVIRONMENT AND BROADER SOCIAL which offers electricity, generated in our own small hydroelectric power plants to the RESPONSIBILITY OF THE COMPANY household customers. The trade mark Blue Energy, which we market on behalf of the Company HSE d.o.o., remains relevant for our commercial customers. At Elektro Ljubljana, concern for the environment, in terms of reducing the burden on the atmosphere, water and soil, means striving to control environmental aspects In the Company itself, we continuously raise awareness on the necessity of the (the elements), products, services and activities which may have an impact on the separate waste collection. We also introduced some new services on the field of environment, and implementing environmental protection programmes. the subsequent separation of office waste, whereby we significantly increased the percentage of the separately collected waste fractions in this segment. As part of our In our Company, we are well aware of the importance of environmental protection, system of continuous improvement, we encourage all our employees to submit their which is why our environmental policies are integrated into the Company’s general own proposals and thus actively contribute to the Company’s future operations where management and operating guidelines. In 2010, the Company fully followed the environmental protection plays a major role. prescribed environmental policy, which includes intentions and principles and a comprehensive attitude of the Company to the environment.
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Compared to the previous year, the quantity of separately collected packaging of all ENVIRONMENTAL MANAGEMENT INVESTMENTS AND SAVINGS WASTE FRACTIONS COLLECTED AND RECYCLED types increased, while the quantity of municipal waste decreased. Due to the reduced IN 2010 (IN KG) investments in 2010, there were less collected metals, alloys, wood etc. In 2010, environmental management investments amounted to 1,968.5 thousand EUR, which is 42% less compared to the previous year.
CONSTRUCTION AND RELATED WASTE 3,626,242 (soil, rocks, concrete, bricks etc.) ENVIRONMENTAL MANAGEMENT INVESTMENTS AND SAVINGS (IN EUR) WASTE FRACTIONS (metals, alloys, wood, plastics, paper etc.) 113,245 2009 2010 MUNICIPAL WASTE 66,990 ENVIRONMENTAL MANAGEMENT INVESTMENTS 3,410,168 1,968,478
ELECTRICAL AND ELECTRONIC DEVICES 39,658 1. Environmental investments 3,195,258 1,839,913 Portion of investments resulting from 3,051,090 1,729,078 PACKAGING 14,967 environmental protection
Environmental impact studies 144,168 110,835 CAR AND OTHER BATTERIES 3,292 2. Costs* 214,910 128,565 WASTE MOTOR, MACHINE AND LUBRICANT OILS 755 Municipal services (waste removal, sewage fees) 92,092 65,831 WASTE NOT INCLUDED IN OTHER LISTS 3,787 Waste disposal (destruction) 3,308 2,489 Waste analysis 34,149 26,401
Maintenance of environmental containers 6,948 2,252
ENVIRONMENTAL PROGRAMMES CHP and RES projects 6,603 885
Management of the ISO 14001 system 3,852 2,124 Each year, we prepare relevant environmental aspects in the company and based on the assessment, we determine important environmental aspects. For each individual Public communication 67,958 28,584 environmental aspect, we consequently determine framework and implementing objectives, time frames and responsibilities of the competent persons, which are defined INCOME AND SAVINGS FROM ENVIRONMENTAL 13,547 15,912 in accompanying programmes, by which we reduce impacts on the environment in the MANAGEMENT Company’s operations. 1. Revenues from sales of waste material 13,547 15,912 Often, the environmental programmes last several years. They are concluded, when the 2. Savings from environmental management 0 0 implementing objectives are fulfilled. Based on analyses on the field of environmental
aspects, we simultaneously add new environmental programmes. *Costs of materials and services.
The following environmental programmes were undergoing in the Company in 2010: 1. Devices and oils containing PCB, 2. Maintenance of commercial and operating facilities and transport equipment, 3. Storage of impregnated wooden pylons, 4. Noise, 5. Asbestos-containing waste, 6. Rehabilitation of the cable sewer, 7. Use of motor vehicles, 8. SF6 Gas, 9. Transformers in sensitive areas, 10. Light pollution, 11. Efficient energy use.
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The customers also receive different contents on the back side of their bills, by mail 3.4. Communication with Stakeholders and with personal contacts. At the end of 2010, an information handbook called Electricity and Additional Services was prepared for commercial customers, with the purpose of informing them on all the relevant subjects, all in one place, and thereby Elektro Ljubljana Elektro Ljubljana is aware that proactive and two-way communication, which leads achieve better understanding and trust. is aware that to the understanding of needs and expectations, is key for the achievement of the proactive and two- set goals. Within the context of communication related to relevant contents of the At the end of the year of 2010, the internal publication Elektro News, the purpose way communication, Company’s operations, the communication objectives in 2010 were mostly directed of which is to build the sense of belonging to the Company and common culture, which leads to the towards informing the employees, customers and other publics on the existing and new completed its tenth year. In internal publication, the employees can find relevant understanding products and services of the Company or communication support to the performance information on the Company’s operations, all in one place. Editing of the publication of needs and of services. In 2010, an important emphasis was given on contents related to the takes place in the Public relations Department in cooperation with the publications expectations, is key efficient energy use and use of renewable energy sources. In 2011, the communication council of the Company. In 2010, five numbers were issued. The communication for the achievement of activities shall be mostly directed towards the division of electricity purchases and with the employees also takes place in other ways, mostly via e-mail, intranet and the set goals. sales and continuation of the communication support to the performance of services. bulletin boards. For all the relevant contents, the employees receive public releases and different notifications. The retired employees of the Company and scholarship Elektro Ljubljana’s customers can receive information and submit complaints via holders also receive the internal publication. All employees with access to the internet the Company’s Call Centre, in person at the Company’s information offices, via the are provided an up-to-the-minute review of daily media releases regarding Elektro Company’s website, or by e-mail. In 2010, the number of questions asked on the Ljubljana and the electricity sector. website, significantly increased. Via the FAQ e-mail address, 612 questions were asked, which is 32% more compared to the year of 2009, while via the address info@ Representatives of owners, key commercial customers and other important business elektro-ljubljana.si, 3,945 questions were asked in 2010, namely for 63% more partner also received the Annual Report of the Company for 2009 in order to compared to the previous year. The answers of the Elektro Ljubljana professionals are maintain their trust. forwarded to customers in the shortest possible time period.
The year of 2010 was very intense in the field of media communications. Elektro Ljubljana follows the principle of openness, proactivity and transparency, according to the Media Act. As in previous years, we analysed media reports about the Company. In 2010, the number of references to ‘Elektro Ljubljana’ increased by 1.5%, i.e. from 1,241 (in 2009) to 1,260. The number of publications was the highest in July (236) and August (196), when the subject of returning the overcharged electricity consumption was relevant. The key positive subjects communicated by the Company to the media were from the field of efficient energy use, use of renewable energy sources and new products and services. However, the Company received the most positive press, when the Management Board decided to return the overcharged electricity consumption in 2008 to the customers. The key negative press governed the problem of the lack of investment funds, liquidity problem and requests for the return of the overcharged electricity consumption. In order to increase the visibility of products and services, knowledge of relevant subjects, understanding and trust, we sent public releases to the media and other contents for the presentation of the Company’s new services. The services were also presented at the meeting of the Management Board with the press at the end of the financial year.
In order to gain understanding, trust and support of the environment, the Elektro Ljubljana professionals also actively cooperated with representatives of local communities and public initiatives, mostly in the field of governing the problem of spatial placing of electricity network and structures. In 2010, the planned construction of the connecting long-distance transmission between the Bršljan DTS and Gotna vas DTS was especially relevant.
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4 Auditor’s Report
5
I know, I should come here more often. The urgent things Financial can wait. I need this peace. I need these moments of mine, this squeaky pier and clouds. Those clouds passing Report by down there. I draw energy from here.
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ANNUAL REPORT 2010 Elektro Ljubljana d.d. ANNUAL REPORT 2010 Elektro Ljubljana d.d. 92 FINANCIAL REPORT FINANCIAL REPORT 93
BALANCE SHEET AS AT 31 DECEMBER 2010 in EUR (rounded) in EUR (rounded)
Note 31 December 2010 31 December 2009 Note 31 December 2010 31 December 2009 A. Non-current assets: 414,197,537 420,495,055 A. Equity 7.6. 262,963,562 261,758,876 Intangible fixed assets and non-current deferred costs and I. Called-up capital 163,412,978 163,412,978 I. 7.1. 2,972,518 2,505,832 accrued revenues 1. Share capital 163,412,978 163,412,978 1. Long-term property rights 160,892 307,156 II. Capital reserves 81,725,014 81,725,014 5. Other non-current deferred costs and accrued revenues 2,811,626 2,198,676 III. Profit reserves 16,941,701 15,770,148 II. Tangible fixed assets 7.2. 408,335,797 414,863,260 1. Legal reserves 1,366,960 1,299,571 1. Land and buildings 310,705,887 314,454,957 2. Other profit reserves 15,574,741 14,470,577 a) Land 12,860,524 12,708,022 IV. Revaluation surplus 243,678 386,763 a) Buildings 297,845,363 301,746,935 V. Net profit or loss brought forward 0 0 2. Production plant and machinery 83,322,752 78,568,398 VI. Net profit or loss for the financial year 640,191 463,973 3. Other plant and equipment 101,132 101,132 4. Tangible fixed assets under acquisition 14,206,026 21,738,773 B. Provisions and non-current accrued costs and deferred revenues 45,841,108 51,286,310 a) Tangible fixed assets under construction and manufacture 14,206,026 21,435,703 1. Provisions for pensions and similar liabilities 7.7. 5,490,543 6,008,643 b) Advances for tangible fixed assets 0 303,070 2. Non-current accrued costs and deferred revenues 7.8. 40,350,565 45,277,667 IV. Non-current financial investments 7.3. 2,879,335 3,099,849 1. Non-current financial investments, excluding loans 2,707,980 2,852,735 C. Non-current liabilities 95,578,861 69,855,721 a) Shares and participating interests in Group companies 1,686,090 1,686,090 I. Non-current financial liabilities 7.9. 95,445,348 69,305,690 b) Shares and participating interests in associates 571,352 571,352 2. Non-current financial liabilities to banks 95,445,348 69,305,690 c) Other shares and participating interests 450,538 595,293 II. Non-current operating liabilities 7.10. 133,513 550,031 2. Long-term loans 171,355 247,114 2. Non-current operating liabilities to suppliers 130,419 542,080 b) Long-term loans to other entities 171,355 247,114 5. Other non-current operating liabilities 3,094 7,951 V. Non-current operating receivables 7.4. 9,887 26,114 3. Non-current operating receivables from other entities 9,887 26,114 Č. Current liabilities 82,835,705 92,836,047 II. Current financial liabilities 7.9. 28,401,159 26,383,459 B. Current assets: 65,643,469 56,890,786 2. Current financial liabilities to banks 28,395,987 26,377,882 II. Inventories 7.12. 1,444,378 1,975,539 4. Other current financial liabilities 5,172 5,577 1. Material 1,444,378 1,975,539 III. Current operating liabilities 7.10. 54,434,546 66,452,588 III. Current financial investments 7.3. 55,014 58,121 1. Current operating liabilities to Group companies 241,409 186,108 2. Short-term loans 55,014 58,121 2. Current operating liabilities to suppliers 48,558,794 58,591,135 a) short-term loans to other entities 55,014 58,121 4. Current operating liabilities on behalf of third parties 42,689 0 IV. Current operating receivables 7.4. 63,897,069 54,730,568 5. Current operating liabilities from advances 1,057,718 970,524 1. Current operating receivables from Group companies 57,676 40,431 6. Other current operating liabilities 4,533,936 6,704,821 2. Current operating receivables from customers 60,695,915 51,382,422 3. Current operating receivables from other entities 3,143,478 3,307,715 D. Current accrued costs and deferred revenues 7.11. 855,068 4,805,913 V. Cash and cash equivalents 247,008 126,558 TOTAL LIABILITIES AND EQUITY 488,074,304 480,542,867 C. Current deferred costs and accrued revenues 7.5. 8,233,298 3,157,026
TOTAL ASSETS 488,074,304 480,542,867 Off-balance sheet liabilities 10. 159,623,608 110,183,796
Off-balance sheet assets 10. 159,623,608 110,183,796 The notes to the financial statements are a constituent part of the financial statements and should bereadin conjunction with them.
ANNUAL REPORT 2010 Elektro Ljubljana d.d. ANNUAL REPORT 2010 Elektro Ljubljana d.d. 94 FINANCIAL REPORT FINANCIAL REPORT 95
INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2010 CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2010 in EUR (rounded) in EUR (rounded) Note 2010 2009 2010 2009 1. Net sales revenue 8.1. 271,911,381 282,880,411 CASH FLOWS FROM OPERATING ACTIVITIES a) in the domestic market 271,812,603 282,702,247 Inflows from the sale of products and services 500,629,947 523,281,108 b) in the foreign market 98,778 178,164 Other inflows from operating activities 685,821 644,342 3. Capitalised own products and services 8.2. 9,520,455 14,492,590 Inflows from operating activities 501,315,768 523,925,450 4. Other operating revenues 8.1. 2,178,145 1,868,897 Outflows for the purchase of materials and services (448,915,537) (467,372,679) Total revenues 283,609,981 299,241,898 5. Costs of goods, material and services 8.3. 222,509,575 240,850,208 Outflows for salaries and wages, and employees’ shares in profit (15,715,319) (18,210,396) a) costs of goods and materials sold and cost of materials used 208,238,806 224,264,403 Outflows for contributions of all types (29,119,578) (20,294,055) b) costs of services 14,270,769 16,585,805 Other outflows from operating activities (765,949) (657,643) 6. Labour costs 8.4. 30,171,537 30,491,718 Outflows from operating activities (494,516,383) (506,534,773) a) salaries and wages 21,373,837 21,493,359 Net inflows from operating activities 6,799,385 17,390,677 b) supplementary employee pension insurance 1,054,681 1,045,272 CASH FLOWS FROM INVESTING ACTIVITIES c) social insurances 3,574,597 3,609,026 Inflows from interest and participating interests in others 79,886 23,352 č) other labour costs 4,168,422 4,344,061 Inflows from the disposal of intangible fixed assets 0 0 7. Amortisation / depreciation and write-offs 8.5. 25,582,705 24,371,848 a) depreciation 24,064,167 22,774,328 Inflows from the disposal of tangible fixed assets 83,291 199,937 b) revaluation operating expenses for intangible and tangible fixed assets 456,692 539,549 Inflows from the disposal of non-current financial investments 64,538 46,994 c) Revaluation operating expenses for current assets 1,061,846 1,057,971 Inflows from the disposal of current financial investments 0 0 8. Other operating expenses 8.6. 775,421 1,233,432 Inflows from investing activities 227,715 270,283 Operating profit or loss 4,570,743 2,294,692 Outflows for the acquisition of intangible fixed assets (30,439) (972,747) 9. Finance revenues from participating interests 8.7. 0 2,133 Outflows for the acquisition of tangible fixed assets (28,125,461) (34,581,871) a) financial revenues from participating interests in other companies 0 2,133 Outflows for the acquisition of non-current financial investments 0 0 10. financial revenues from loans granted 8.7. 16,564 29,171 a) financial revenues from loans to other entities 16,564 29,171 Outflows for the acquisition of current financial investments 0 0 11. Financial revenues from operating receivables 8.7. 476,940 656,722 Outflows from investing activities (28,155,900) (35,554,618) a) financial revenues from operating receivables from other entities 476,940 656,722 Net outflows from investing activities (27,928,185) (35,284,335) 12. Financial expenses from impairment and write-offs of financial investments 8.8. 1,842,376 130,098 CASH FLOWS FROM FINANCING ACTIVITIES 13. Financial expenses from financial liabilities 8.8. 3,717,009 2,481,340 Inflows from paid-up capital 0 0 a) financial expenses from loans raised at banks 3,717,009 2,481,340 Inflows from long-term loans raised 39,300,000 32,043,000 14. financial expenses from operating liabilities 8.8. 411,059 783,034 Inflows from short-term loans raised 74,518,509 69,616,312 a) financial expenses from liabilities to suppliers and liabilities from bills of exchange 364,704 655,969 Inflows from financing activities 113,818,509 101,659,312 b) financial expenses from other operating liabilities 46,355 127,065 Net profit or loss from ordinary activities (906,197) (411,754) Outflows for interest paid (2,764,707) (2,632,526) 15. Other revenues 8.9. 5,662,897 2,649,136 Outflows for return on equity 0 0 16. Other expenses 8.10. 3,408,928 936,105 Outflows for the repayment of long-term loans and credit (12,225,042) (11,544,528) Profit or loss from extraordinary activities 2,253,969 1,713,031 Outflows for the repayment of short-term loans and credit (77,579,003) (69,553,994) 17. Corporate income tax 0 324,491 Outflows for the payment of dividends and other participating interests (507) (1,328) 19. Net profit or loss for the financial year 8.11. 1,347,772 976,786 Outflows from financing activities (92,569,259) (83,732,376) 20. Changes of surplus from revaluated intangible and tangible fixed assets 0 0 Net inflows from financing activities 21,249,250 17,926,936 21. Changes of surplus from revaluated financial assets, available for sale (143,085) 186,130 22. Profits and losses from translation of financial statements of companies abroad 0 0 CLOSING BALANCE OF CASH AND CASH EQUIVALENTS 247,008 126,558 23. Other elements of comprehensive yield 0 0 Net cash flow for the period (sum of net flows) 120,450 33,278 24. Total comprehensive yield of the financial period 8.12. 1,204,687 1,162,916 Opening balance of cash and cash equivalents 126,558 93,280 The notes to the financial statements are a constituent part of the financial statements and should bereadin The notes to the financial statements are a constituent part of the financial statements and should bereadin conjunction with them. conjunction with them.
ANNUAL REPORT 2010 Elektro Ljubljana d.d. ANNUAL REPORT 2010 Elektro Ljubljana d.d. 96 FINANCIAL REPORT FINANCIAL REPORT 97
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2010 in EUR (rounded) Notes to the Financial Statements Net profit Other Revalu for the for the Year ended 31 December 2010 Share Capital Legal profit ation financial Movement of equity capital reserves reserves reserves surplus year Total A.1. Balance as at 31 Dec 2009 163,412,978 81,725,014 1,299,571 14,470,577 386,763 463,973 261,758,876 1. ACTIVITY Total comprehensive yield of B.2. 0 0 0 0 (143,085) 1,347,772 1,204,687 the financial period Since 1 July 2007, Elektro Ljubljana is no longer a public utility company and no Transfer of profit or loss for the longer performs public utility services. a) 0 0 0 0 0 1,347,772 1,347,772 financial year Revaluation surplus from financial The Company generates revenues: č) 0 0 0 0 (143,085) 0 (143,085) investments • under the Agreement on the Lease of Electricity Infrastructure and Provision of B.3. Changes in equity 0 0 67,389 1,104,164 0 (1,171,553) 0 Services of a System Operator of the Electricity Network for SODO d.o.o., Reallocation of a part of net profit • through electricity sales and of the financial year to other • via other services. a) equity elements pursuant to the 0 0 67,389 640,191 0 (770,580) 0 decision of the Management and Supervisory Board Reallocation of a part of net 2. INFORMATION ABOUT GROUP COMPANIES AND AFFILIATES profit to additional profit b) 0 0 0 463,973 0 (463,973) 0 reserves pursuant to the General Pursuant to the Energy Act, on 14 February 2002 the Company established the company Meeting’s resolution Male hidroelektrarne Elektro Ljubljana, proizvodnja električne energije, d.o.o., Ljubljana, D. Balance as at 31 Dec 2010 163,412,978 81,725,014 1,366,960 15,574,741 243,678 640,191 262,963,562 Slovenska cesta 56, which is 100% owned by the Company. The affiliated company was entered into the court register in Ljubljana under Decision no. Srg. 2002/01630. The share DISTRIBUTABLE PROFIT 0 0 0 0 0 640,191 640,191 capital of the company amounts to 59,669 EUR. On 3 January 2011 the company was renamed to Elektro Ljubljana OVE, inženiring s področja obnovljivih virov energije d.o.o. with abbreviated name EL OVE d.o.o. According to the criteria set out in the Companies STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2009 Act (ZGD-1), the subsidiary is classified as a micro company and as such does not have in EUR (rounded) a significant impact on the true and fair presentation of the financial position, income Net profit Other Revalu for the statement, cash flow statement and statement of changes in equity of the parent company. Share Capital Legal profit ation financial Thus the financial statements of the subsidiary are not consolidated. Movement of equity capital reserves reserves reserves surplus year Total A. Balance as at 1 Jan 2009 163,412,978 81,725,014 1,250,731 13,930,429 200,633 76,175 260,595,960 The Company holds a 27.7% stake or 4,524 shares in the company Informatika, informacijske storitve in inženiring, d.d., Vetrinjska ulica 2, Maribor, and one position on B. Changes in equity 0 0 0 0 186,130 976,786 1,162,916 the aforementioned company’s supervisory board. The affiliated company was entered Transfer of net profit or loss for the 976,786 976,786 into the court register in Maribor under Decision no. Srg. 1/00871/2000. The share capital 2009 financial year of the company amounts to 669,653 EUR. The shares are not traded on the stock exchange. Revaluation surplus for non-current 186,130 186,130 financial investments The unrevised net profit for the financial year of the company Informatika d.d. amounts to 57,507 EUR in 2010 and to 91,152 EUR in 2009. C. Transfers within equity 0 0 48,840 540,148 0 (588,988) 0 Reallocation of a part of net profit for the 2009 financial year pursuant 48,840 463,973 (512,813) 0 3. EMPLOYEES to the decision of the Management and Supervisory Board On 31 December 2010, there were 984 employees and on 31 December 2009, 1,028. Increase in other profit reserves from 2008, pursuant to the 76,175 (76,175) 0 The average number of employees in the 2010 financial year was 1,013 and in the 2009 General Meeting’s resolution financial year, 1,036. The employee educational structure is given in the Business Report. D. Balance as at 31 Dec 2009 163,412,978 81,725,014 1,299,571 14,470,577 386,763 463,973 261,758,876 4. EXCHANGE RATES AND METHODS OF CONVERSION TO THE DISTRIBUTABLE PROFIT 463,973 463,973 DOMESTIC CURRENCY The notes to the financial statements are a constituent part of the financial statements and should bereadin The Company converts business events in foreign currencies according to the middle conjunction with them. exchange rate of the Bank of Slovenia as at the balance sheet date.
ANNUAL REPORT 2010 Elektro Ljubljana d.d. ANNUAL REPORT 2010 Elektro Ljubljana d.d. 98 FINANCIAL REPORT FINANCIAL REPORT 99
5. REPORTING IN ACCORDANCE WITH THE ENERGY ACT The cash flow statement also shows cash inflows and outflows generated by the Company’s activities performed in its own name and on behalf of SODO d.o.o. pursuant Pursuant to Article 38 of the Energy Act, the Company is obliged to report by to the Agreement on the Lease of Electricity Infrastructure and Provision of Services of individual areas, i.e. separately for the energy activity (electricity sale), and other a System Operator of the Electricity Network. These activities, which do not constitute activities it performs. the Company’s profit, include: charging network and other fees, purchasing electricity to cover energy loses and for emergency supply; and charging average connection costs. 6. SUMMARY OF ACCOUNTING POLICIES The statement of changes in equity has been compiled according to Version I of SAS 27.2. Elektro Ljubljana d.d. compiled its balance sheet as at 31 December 2010 and the profit or loss statement, cash flow statement and statement of changes in equity for the 2010 a) Tangible fixed assets financial year in accordance with the Slovenian Accounting Standards, Energy Act and Act Pursuant to the Public Utilities Act (Official Gazette of the RS, No. 32/93) and the Determining the Methodology for the Calculation of Network Charge and Methodology for Agreement Determining the Share of Capital between the Republic of Slovenia and Setting the Network Charge, and the Criteria for Determining Eligible Costs for Electricity the Public Utility Company Elektro Ljubljana p.o. of 19 July 1996, the Republic of Networks, which was adopted by the Council of the Energy Agency of the Republic of Slovenia provided the public utility company infrastructure facilities, equipment and Slovenia, based on the second paragraph of Article 27 and Article 87 of the Energy Act. networks, as well as mobile and other assets for its use. As of the agreement effective date, the public utility company became the owner of these assets, on the stipulation Elektro Ljubljana d.d. and Sodo d.o.o. concluded the Agreement on the Lease of Elec that they be returned to the Republic of Slovenia in their entirety should bankruptcy tricity Infrastructure and Provision of Services of a System Operator of the Electricity proceedings be initiated against the public utility company. Network. Based on this Agreement and Annex no. 3, concluded on 11 October 2010, we, inter alia, agreed the method of the account adjustment for the regulatory year of 2009, Elektro Ljubljana is liable for its obligations with all its property, except for the the method of account adjustment for the difference between the amount of the account infrastructure facilities, equipment and networks, and mobile and other assets, intended adjustment for the regulatory period of 2004 – 2009 and the partially paid amount of for the performance of activities which by law are defined as public utility services. the account adjustment for the year of 2009 and the method of the account adjustment for 2010. The account adjustment for the period of 2004 – 2009 for Elektro Ljubljana As of 1 July 2007 all the infrastructure required for the performance of public service shows the access of revenues above the acknowledged costs in the amount of 996,126 was leased out to the company SODO d.o.o. for management. From this date, the EUR., which the Company recorded and showed in the financial year of 2010 in a way Company Elektro Ljubljana d.d. is no longer a public utility company and no longer that is presented in details in the regulatory framework of the business part of the annual performs public services. report and in the disclosure of the financial report. With the account adjustment for the financial period of the last six years, the Company intervened into the profit or loss for Tangible fixed assets, acquired until 31 December 2001 are shown in values evaluated in 2001. the year of 2010 and thereby derogated from the Slovenian Accounting Standards. According to these valuations, only decreases in value or impairments have been disclosed in accordance with valid standards, while increases or value gains have been excluded. The following accounting assumptions were applied by the Company: • the balance sheet includes only assets and liabilities connected to the Company’s Tangible fixed assets acquired after 2001 are disclosed at historical cost, with all sales activities; costs, revenues and expenses were recorded as incurred and in the and disposals appropriately accounted for. Valuation adjustments were formed in the accounting period to which they relate, regardless of inflows and outflows; amount of calculated depreciation. • the assumption is made that the Company will continue to operate for the foreseeable future, and that periodic results, including annual results, only represent a relative value; The Company values assets according to the historical cost model, as tangible fixed • the principle of historical costs has been used in the compilation of the financial assets are intended for the creation of products and provision of services. Thus the statements and accompanying notes. value of these assets is more important than their market value. The Company expects economic benefits from their use. When selecting accounting policies, i.e. the rules and procedures that must be observed and applied in compiling the financial statements and throughout the accounting process, the More important tangible fixed assets such as office buildings, structures of distribution Company took into account the principle of prudence, giving precedence to substance over transformer stations, distribution stations and transformer stations with accompanying form and the significance of events. equipment, with individual part of these assets having a shorter lifespan as the whole The Company took into account the principle of individual valuation of assets and liabilities. asset, are divided in more sections with a shorter estimated lifespan. The Company Version I according to SAS 25.5 has been used to compile the income statement. does not calculate depreciation for the costs of potential disassembly or removal, since it does not expect such costs. The cash flow statement has been compiled according to Version I in accordance with SAS 26.6, i.e. the direct method. Data for the compilation of the cash flow statement The Company has no tangible fixed assets acquired by financial lease nor has its derive from accounting data. pledged assets as mortgage.
ANNUAL REPORT 2010 Elektro Ljubljana d.d. ANNUAL REPORT 2010 Elektro Ljubljana d.d. 100 FINANCIAL REPORT FINANCIAL REPORT 101
b) Depreciation e) Financial investments
Depreciation was calculated according to the straight-line method of depreciation Investments comprise investments in the equity of banks and other companies, and using the historical cost of individual fixed assets with regard to their useful life. The investments in subsidiaries and affiliates. All investments are measured at historical responsible persons of the Company determine the type and useful life for new types cost, and are allocated to available-for-sale investments, except investments in shares of intangible and tangible fixed assets. that are listed on the stock exchange and measured at fair value through equity.
Fixed assets under construction are not depreciated until put into service. At least once a year, namely before compiling the annual financial statements, the Company checks the suitability of the indicated value of individual financial investments. If a certain financial investment is loosing value, the Company assesses the size of the THE FOLLOWING DEPRECIATION RATES WERE APPLIED IN 2009 AND 2010 adjustment of its original value, which is to be charged to revaluated financial outflows. In addition, it must perform a partial or a full write-off of the financial investment, directly 2010 2009 charged to the revaluated financial outflows, as soon as required. On the last day of the Buildings 2.00% do 3.33% 2.00% do 3.00% year, the Company also coordinates the investments in shares traded in the stock exchange. Plant and equipment 3.33% do 20.00% 3.33% do 20.00% The Company also records long-term loans, given to employees under loan agreements Motor vehicles 8.33% do 14.29% 8.33% do 14.29% for the purchase of apartments at the amortized price, among the non-current financial Furniture 6.67% do 12.5% 6.67% do 12.5% investments The short-term portion of long-term loans, which become due in a year, is disclosed under current financial investments. Computer equipment 33.33% 33.33% f) Provisions c) Inventories The Company creates non-current provisions for loyalty bonuses and employee Inventories are valued at historical cost. The moving average price method is applied to severance payments as the current value of employer liabilities to employees. There value the use of inventories. Thereby, with each new purchase, the new average price of are formed due to the Slovenian Accounting Standard 2006. The calculation of non- current provisions was performed by an authorised actuary. material in stock is calculated. Inventories primarily comprise materials and spare parts for use in the Company’s own investments and for the maintenance of fixed assets. Based on judicial proceedings, whereupon the Company can be certain to have liabilities in the future, the provisions for such claims are formed according to the SAS. d) Receivables g) Non-current accrued costs and deferred revenues The majority of operating receivables comprise receivables from customers that arose during the normal flow of operations. Receivables are disclosed in their net values in the balance The Company discloses particularly the following among non-current accrued costs sheet, meaning that they have been decreased by the amount of value adjustments created and deferred revenues: due to doubtful and disputed receivables. When creating value adjustments, the Company • Fixed assets acquired free of charge, which represent connections and other parts of applies an accounting assessment, whereby it creates adjustments as a percentage of the the network and equipment acquired free of charge and financed by the legal entities value of doubtful and disputed receivables on the basis of experience from previous years. and natural persons and are included into the Company’s distribution network and • fees paid for connection to the energy network until 1 July 2007. The Company forms the amount of value adjustments in the following manner. For receivables from bankruptcy proceedings, which were not yet published in the Official The amount used is credited to other operating revenues while taking into account the Journal RS for the sued receivables and receivables from compulsory settlement actual amount of depreciation calculated on fixed assets acquired free of charge, while proceedings, if not yet confirmed, the amount is 80%. For other receivables, the adjustment the amount used arising from fees paid is allocated to other operating revenues in the is formed based on experience from previous years and expectations in the financial year, amount calculated using the depreciation rates of fixed assets, which are financed in the amount of 30%, for the receivables form the supply of electricity and services, from assets obtained in this manner. and in the amount of 50%, for the receivables from default interests, which became due over 90 days ago. The amounts of write-offs of receivables are charged to revaluated h) Taxation operating outflows and credited to appropriate value adjustment of receivables. The Company is liable for the payment of corporate income tax. In 2010, it indicates The Company did not create any deferred tax receivables, as it assesses that it is unlikely a tax loss from the annulment of the decision of the Competition Protection Office for that profit will be available in coming years, against which it would be possible to cover the established concerted action of electro distribution companies at the increase of deductible temporary differences. electricity prices for household customers.
ANNUAL REPORT 2010 Elektro Ljubljana d.d. ANNUAL REPORT 2010 Elektro Ljubljana d.d. 102 FINANCIAL REPORT FINANCIAL REPORT 103
7. DISCLOSURE OF BALANCE SHEET ITEMS Intangible fixed assets comprise property rights for computer software. Deferred costs and accrued revenues comprise non-current chargeable costs for the creation 7.1. Intangible fixed assets and non-current deferred costs and accrued revenues of programmes for the needs of electricity sales and noncurrent deferred operating expenses that represent investments in the spatial information system project and FOR 2010 in EUR (rounded) assets to establish a reserve fund according to the Housing Act. Non-current Total intangible fixed Long-term deferred assets and non-current The purchase value of intangible fixed assets and non-current deferred costs and property operating Accrued Reserve deferred costs and accrued revenues increased for 1,022,318 EUR in 2010. Due to the transfer to costs, rights costs lease fund accrued revenues the purchase value of non-current deferred costs and accrued revenues decreased for 1 2 3 4 5=1+2+3+4 354,330 EUR. Valuation adjustments to intangible assets increased by 201,302 EUR Purchase value due to calculated depreciation. Balance as at 1 Jan 2010 2,755,426 2,033,239 131,739 33,698 4,954,102 Increases 55,038 950,369 16,911 1,022,318 In comparison to 2009, the book value of intangible assets and non-current deferred costs and accrued revenues in 2010 increased by 18.6%. Decreases 0 (297,742) (47,467) (9,121) (354,330) Balance as at 31 Dec2010 2,810,464 2,685,866 84,272 41,488 5,622,090 Valuation adjustment 7.2. Tangible fixed assets Balance as at 1 Jan 2010 2,448,270 0 0 0 2,448,270 Depreciation 201,302 0 0 0 201,302 FOR 2010 in EUR (rounded) Decreases/write-offs 0 0 0 0 Investments Total Plant and under tangible fixed Balance as at 31 Dec 2010 2,649,572 0 0 0 2,649,572 Land Buildings equipment preparation assets Book value Purchase value Balance as at 1 Jan 2010 307,156 2,033,239 131,739 33,698 2,505,832 Balance as at 1 Jan 2010 12,708,022 789,669,953 167,706,182 21,738,773 991,822,930 Balance as at 31 Dec 2010 160,892 2,685,866 84,272 41,488 2,972,518 Increases 164,581 19,045,125 14,314,375 22,974,151 56,498,232 Decreases (12,079) (11,329,801) (3,694,708) (30,203,828) 45,240,416 FOR 2009 in EUR (rounded) Advances for tangible fixed (303,070) (303,070) Non-current Total intangible fixed assets Long-term deferred assets and non-current Balance as at 31 Dec 2010 12,860,524 797,385,277 178,325,849 14,206,026 1,002,777,676 property operating Accrued Reserve deferred costs and rights costs lease fund accrued revenues 1 2 3 4 5=1+2+3+4 Valuation adjustment Purchase value Balance as at 1 Jan 2010 0 487,923,018 89,036,652 0 576,959,670 Balance as at 1 Jan 2009 2,799,276 936,524 139,516 35,035 3,910,351 Depreciation 0 16,142,076 7,720,789 0 23,862,865 Increases 154,540 1,269,112 0 16,866 1,440,518 Increases/reconstructions 0 0 0 0 0 Decreases (198,390) (172,397) (7,777) (18,203) (396,767) Decreases/write-offs 0 (4,525,180) (1,855,476) 0 (6,380,656) Balance as at 31 Dec 2009 2,755,426 2,033,239 131,739 33,698 4,954,102 Balance as at 31 Dec 2010 0 499,539,914 94,901,965 0 594,441,879 Valuation adjustment Balance as at 1 Jan 2009 2,198,947 0 0 0 2,198,947 Book value Depreciation 447,713 0 0 0 447,713 Balance as at 1 Jan 2010 12,708,022 301,746,935 78,669,530 21,738,773 414,863,260 Decreases/write-offs (198,390) 0 0 0 (198,390) Balance as at 31 Dec 2010 12,860,524 297,845,363 83,423,884 14,206,026 408,335,797 Balance as at 31 Dec 2009 2,448,270 0 0 0 2,448,270 Book value Balance as at 1 Jan 2009 600,329 936,524 139,516 35,035 1,711,404 Balance as at 31 Dec 2009 307,156 2,033,239 131,739 33,698 2,505,832
ANNUAL REPORT 2010 Elektro Ljubljana d.d. ANNUAL REPORT 2010 Elektro Ljubljana d.d. 104 FINANCIAL REPORT FINANCIAL REPORT 105
FOR 2009 in EUR (rounded) Due to their exclusion from use and transfer to SODO d.o.o., the book value of fixed Investments Total assets was down 534,078 EUR in 2010. Plant and under tangible fixed Land Buildings equipment preparation assets Compared to 2009, the book value of tangible fixed assets in 2010 decreased for Purchase value 1.6%, mostly due to the transfer of assets, financed from the average connection costs, Balance as at 1 Jan 2009 11,859,859 762,763,407 158,104,165 20,713,370 953,440,801 collected from 1 July 2007 to 31 December 2010 to the SODO d.o.o., in the amount Increases 877,013 29,482,099 14,156,562 46,073,144 90,588,818 of 8,212,946 EUR. Decreases (28,850) (2,575,553) (4,554,545) (45,229,608) (52,388,556) Advances for tangible fixed A detailed presentation of investments in fixed assets is provided in the Business Report. 0 0 0 181,867 181,867 assets Balance as at 31 Dec 2009 12,708,022 789,669,953 167,706,182 21,738,773 991,822,930 7.3. Financial investments
Valuation adjustment
Balance as at 1 Jan 2009 0 479,479,115 86,651,984 0 566,131,099 CHANGES TO FINANCIAL INVESTMENTS IN 2010 Depreciation 0 15,517,156 6,809,459 0 22,326,615 in EUR (rounded) Increases/reconstructions 0 (4,757,150) (165,301) 0 (4,922,451) Shares and Shares and Other non- Long-term/ participating participating current short-term Decreases/write-offs 0 (2,316,103) (4,259,490) 0 (6,575,593) interests in interests in financial loans Balance as at 31 Dec 2009 0 487,923,018 89,036,652 0 576,959,670 Group companies associates investments to others Total Non-current financial investments Book value Balance as at 1 Jan 2010 1,686,090 571,352 595,293 247,114 3,099,849 Balance as at 1 Jan 2009 11,859,859 283,284,292 71,452,181 20,713,370 387,309,702 Increases 0 0 0 0 0 Balance as at 31 Dec 2009 12,708,022 301,746,935 78,669,530 21,738,773 414,863,260 Decreases/write-offs 0 0 (144,754) (75,759) (220,513) Balance as at 31 Dec 2010 1,686,090 571,352 450,539 171,355 2,879,336
The purchase value of tangible fixed assets increased for 33,524,082 EUR in 2010. Current financial investments Thereby the increase of the purchase value from the fixed assets acquired free of Balance as at 1 Jan 2010 58,121 58,121 charge amounts to 4,325,660 EUR. The decrease of the purchase value due to the Increases 51,877 51,877 transfer amounts to 15,036,588 EUR, thereby, due to the transfer of means financed Decreases (54,984) (54,984) from the average connection costs, collected from 1 July 2007 to 31 December 2010 to the SODO d.o.o., in the amount of 8,747,024 EUR. Balance as at 31 Dec 2010 55,014 55,014
Valuation adjustments to fixed assets increased by 23,862,865 EUR due to calculated Non-current financial investments decreased in 2010 for the amount of revaluation of depreciation, and decreased due to exclusion from use by 6,380,656 EUR. floating shares. The value of long-term loans to third parties decreased on account of repayments and as a result of reclassification of the portion of long-term loans maturing In 2010, reconstructions are no longer indicated as the decrease of valuation within the year following the balance sheet date to short-term loans to third parties. adjustments. The consequence of this are increased amounts indicated as the decrease of the purchase and written-off value. In 2009, due to the reconstruction costs, which increase the usable life of tangible fixed assets, the depreciation valuation adjustment, 7.4. Operating receivables collected by then, decreased by 4,922,451 EUR. Non-current operating receivables are receivables arising from the sale of apartments Material investment under preparation amounted to 14,206,026 EUR which is 34.7% pursuant to the Housing Act and they amount to 9,887 EUR. The portion of receivables, less than in 2009 as a consequence of concluding the investments, which started in amounting to 17,207 EUR, which fall due for payment in 2010, is disclosed under the previous period. other current operating receivables. Total receivables from the sale of apartments amount to 22,064 EUR.
ANNUAL REPORT 2010 Elektro Ljubljana d.d. ANNUAL REPORT 2010 Elektro Ljubljana d.d. 106 FINANCIAL REPORT FINANCIAL REPORT 107
The valuation adjustment of receivables was up 42.7% on 2010. The increase is the CURRENT OPERATING RECEIVABLES FROM CUSTOMERS WITHOUT ADVANCES FOR OPERATIONAL MEANS consequence of bankruptcies, compulsory settlements, eliminations and law-suits. in EUR (rounded) Balance as at 31 Dec 2010 Balance as at 31 Dec 2009 Current receivables from others accounted for 4.9% of all current operating receivables. Receivables from electricity customers 53,015,105 47,361,412 Most part goes on the account of receivables for deductible VAT, which becomes due in the following financial period. Receivables from others, except group companies 10,025,232 5,534,971 Receivables arising from default interest 423,828 460,830 Receivables from customers are not secured by collateral. Total receivables from customers 63,464,166 53,357,213 Value adjustments to receivables from customers (2,818,491) (1,974,791) Total receivables from customers, including 7.5. Current deferred costs and accrued revenues 60,645,674 51,382,422 value adjustments in EUR (rounded) 31 December 2010 31 December 2009 Current receivables from customers accounted for 94.9% of all current operating Decision of Tax Administration of RS 2008 3,142,444 3,142,444 receivables. The balance of receivables was up 18.1% on 2009. Currently uncharged services to customers 7,107 6,982 Costs paid in advance 3,300 7,600 Uncharged revenues 5,080,447 0 AGE STRUCTURE OF OPERATING RECEIVABLES FROM CUSTOMERS WITHOUT ADVANCES FOR OPERATIONAL MEANS Total 8,233,298 3,157,026
in EUR (rounded) Current deferred costs and accrued revenues comprise currently deferred expenses 31 Dec 2010 % 31 Dec 2009 % which constitute the Company’s receivable of 3,142,444 EUR pursuant to a Tax Current 52,800,059 83.2% 42,506,660 79.7% Administration Decision. The higher tax liability arises from the Special Tax Office’s Maturity of up to 30 days 5,029,707 8.0% 4,800,333 9.0% interpretation that a taxable entity is not eligible to carry forward 100% of tax losses Maturity of between 31 and 60 days 1,219,485 1.9% 1,993,264 3.7% as a result of amendments to tax legislation. The Company filed a law suit to the Maturity of between 61 and 90 days 401,292 0.6% 817,334 1.5% Administrative Court. Maturity of over 90 days 4,013,623 6.3% 3,239,622 6.1% Total 63,464,166 100.0% 53,357,213 100.0% Uncharged revenues are mostly revenues, for which the invoices shall be issued in 2011 after the settlement of the regulatory year of 2010 and account adjustment of the electricity sales and purchases in 2010. The amount of revenues from the account A total of 16.8% of all operating receivables from customers at the end of 2010 adjustment of 2010 is 4,074,349 EUR. The amount from account adjustment is had not been settled by their due dates, compared with 20.3% in 2009. The amount 1,006,098 EUR. of receivables due also comprises receivables due from customers undergoing compulsory settlement, lawsuits or bankruptcy proceedings and already underwent the valuation adjustment. 7.6. Equity
The share capital of the Company in the amount of 163,412,978 EUR is divided into 39,160,286 no par value shares. Each share gives its owner the right to vote at the CHANGES IN VALUE ADJUSTMENTS TO RECEIVABLES FROM CUSTOMERS IN 2010 General Meeting of Shareholders and a share in the profits of the Company.
in EUR (rounded)
Adjustment to Adjustment to STRUCTURE OF EQUITY original receivables default interest Total Adjustment to value of receivables as at 1 Jan 2010 1,797,804 176,987 1,974,791 31 December 2010 31 December 2009 Additional adjustment to the value of receivables 980,621 53,427 1,034,048 Republic of Slovenia 79.5% 79.5% Decreases/write-offs (159,319) (31,029) (190,348) Other legal entities 18.8% 18.7% Ending balance of adjustment to the value of Natural persons 1.7% 1.8% 2,619,106 199,385 2,818,491 receivables Total 100.0% 100.0%
ANNUAL REPORT 2010 Elektro Ljubljana d.d. ANNUAL REPORT 2010 Elektro Ljubljana d.d. 108 FINANCIAL REPORT FINANCIAL REPORT 109
Pursuant to the Companies Act, the Management and Supervisory Boards allocated 7.8. Non-current accrued costs and deferred revenues net profit for the 2010 financial year as follows:
in EUR (rounded) CHANGES TO NON-CURRENT ACCRUED COSTS AND DEFERRED REVENUES IN 2010 in EUR (rounded) Net profit for the financial year 2010 1,347,772 Use and Balance as at Creation of legal reserves from profit (67,389) Balance as at Increases – release of 31 December Creation of other reserves from profit (640,191) 1 January 2010 acquisitions provisions 2010 Undistributed net profit for the financial year - distributable profit 640,191 From tangible fixed assets acquired free of charge 28,982,532 4,321,371 (1,311,327) 31,992,576 From payments for connection to the network 16,243,287 0 (8,656,883) 7,586,404 In 2010, the General Meeting of Shareholders adopted a resolution whereby the From long-term rents 51,848 225,921 (4,247) 273,522 distributable profit for 2009 would be allocated to other reserves from profit. From account adjustments of the regulatory period 0 498,063 0 498,063 of 2004 - 2009 in EUR (rounded) Total 45,277,667 5,045,355 9,972,457 40,350,565 Distributable profit for 2009 (463,973) Creation of other reserves from profit 463,973 Non-current accrued costs and deferred revenues from the fixed assets acquired free The book value per share as at 31 December 2010 is 6.72 EUR. of charge increased for 4,321,371 EUR in 2010. Due to the utilisation, namely transfer of depreciation of fixed assets acquired free of charge to other operating revenues, the non-current accrued costs and deferred revenues decreased for 1,311,327 EUR. 7.7. Provisions Non-current accrued costs and deferred revenues from payments for connection to the network decreased in 2010 due to the transfer of fixed assets, financed from the CHANGES TO PROVISIONS IN 2010 in EUR (rounded) funds, acquired in the period from 1 July 2007 to 31 December 2010 to SODO d.o.o., in the total amount of 8,212,946 EUR, and due to the utilisation, namely transfer of Severance Loyalty Total payments bonuses provisions depreciation of fixed assets financed from the payments for connections to the network Balance as at before 1 July 2007 in the amount of 443,937 EUR to other operating revenues. 2,621,830 3,386,813 6,008,643 1 January 2010 Utilised (451,959) (309,526) (761,485) Formed - eliminated 341,953 (98,568) 243,385 7.9. Financial liabilities Balance as at 2,511,824 2,978,719 5,490,543 31 December 2010 Non-current and current financial liabilities primarily comprise liabilities for loans received from banks, namely:
in EUR (rounded) According to the actuary calculation, the liabilities for severance payments for the 31 December 2010 31 December 2009 retirement amount to 2,411,824 EUR and loyalty bonuses amount to 2,978,719 EUR on Non-current financial liabilities to domestic banks 81,532,765 69,305,690 31 December 2010. In 2010, severance payments were paid in the amount of 451,959 Non-current financial liabilities to banks abroad 13,912,583 0 EUR and loyalty bonuses in the amount of 309,526 EUR. Non-current provision for Total 95,445,348 69,305,690 liabilities to severance payments on 31 December 2010 were additionally formed in the amount of 341,953 EUR, while the liabilities from loyalty bonuses were lower Current financial liabilities to domestic banks 27,308,570 26,377,882 according to the calculation, thereby the non-current provisions for loyalty bonuses Short-term part of non-current financial liabilities to banks abroad 1,087,417 0 were reduced for 98,568 EUR. Total 28,395,987 26,377,882 Total financial liabilities 123,841,335 95,683,572
ANNUAL REPORT 2010 Elektro Ljubljana d.d. ANNUAL REPORT 2010 Elektro Ljubljana d.d. 110 FINANCIAL REPORT FINANCIAL REPORT 111
The short-term portion of long-term loans is disclosed under current financial liabilities 7.10. Operating liabilities in the balance sheet in the amount of 13,027,400 EUR. Operating liabilities are primarily current operating liabilities to suppliers. The The balance of financial liabilities to banks as at 31 December 2010 was increased balance of total liabilities to suppliers as at 31 December 2010 was decreased by by 29.4% referring to the balance as at 31 December 2009. Long-term loans were up 17.1% referring to the balance as at 31 December 2009. 37.7%, while short-term loans were up 7.6%.
The Company raised 2 loans in 2010 for a period of 10 years amounting to total of CURRENT OPERATING LIABILITIES TO SUPPLIERS in EUR (rounded) 15,000,000 EUR tied to the 1-month EURIBOR with a mark-up of 2.20% and 5 loans for a period of 7 years in the amount of 24,300,000 EUR tied to the 3-month EURIBOR with 31 December 31 December 2010 2009 a 1.8%, 2.4% and 2.55% mark-ups and the 6-month EURIBOR with a 1.6% mark-up. Liabilities to electricity suppliers 20,881,029 37,046,301 The Company raised four loans in 2009 for a period of 10 years amounting to 32,043,000 Liabilities to other suppliers 27,677,765 21,544,834 EUR. These comprised three loans tied to the 1-month EURIBOR with mark-ups of 2.25%, Total 48,558,794 58,591,135 2.49% and 2.50%, and a loan tied to the 3-month EURIBOR with a 3.10% mark-up. Other operating liabilities include liabilities to employees for December salaries and The Company raised 3 loans in 2008 for a period of 10 years amounting to 30,400,000 liabilities to government and other institutions. EUR. These comprised two loans tied to the 1-month EURIBOR with mark-ups of 0.95% and 0.96%, and a loan tied to the 3-month EURIBOR with a 1.55% mark-up. 7.11. Current accrued costs and deferred revenues The Company raised three loans in 2007 for a period of 10 years amounting to total of 13,328,622 EUR. These comprised a loan tied to the 1-month LIBOR for the Swiss franc with a mark-up of 0.37%, a loan tied to the 3-month EURIBOR with a mark-up CHANGES TO CURRENT ACCRUED COSTS AND DEFERRED REVENUES IN 2010 0.39%, and a loan with a fixed interest rate of 5.00%. in EUR (rounded) Balance as at Balance as at The Company raised two loans in 2006 for a period of 10 years amounting to total of 1 January 2010 Increases Decreases 31 December 2010 5,842,894 EUR, both tied to the 1-month EURIBOR and with mark-ups of 0.35% and Accrued costs – penalty CPO 3,533,418 0 (3,533,418) 0 0.31%, respectively. Accrued costs IFI for currency exchange 1,272,495 1,789,172 (3,061,667) 0 Accrued costs - account adjustments for the 0 498,063 0 498,063 Other long-term loans were raised for a period of 5 years. regulatory period of 2004 - 2009 Fixed interest rates on long-term loans were 5.00% in 2010 and 2009. Accrued costs - from account adjustments 0 303,170 0 303,170 for derogations in 2010 in the system Interest rates on long-term loans with variable interest rates tied to the 1-month, Other accrued costs 0 53,835 0 53,835 3-month or 6-month EURIBOR with a mark-up, fluctuated between 0.7919% and 3.8862% in 2010, and between 1.2890% and 4.0373% in 2009. Total 4,805,913 2,644,240 6,595,085 855,068
Interest rates on long-term loans with variable interest rates tied to the 1-month The current accrued costs and deferred revenues of 3,533,418 EUR comprise the LIBOR for the Swiss franc with a mark-up, fluctuated between 0.4674% and 0.5276% amount laid down in the decision of the Competition Protection Office, which found in 2010, and between 0.5894% and 0.6204% in 2009. that five distribution companies were price fixing in November 2007. The Company appealed. The procedure was concluded in December 2010. The penalty was reduced Nominal interest rates on short-term loans fluctuated between 2.00% and 4.90% in to 125,000 EUR. 2010 and between 4.90% and 6.25% in 2009. The Company paid to the bank the amount of 3,061,667 EUR because of the Interest rates on short-term loans with variable interest rates tied to the 1-month, termination of the implemented financial instrument of the currency exchange. 3-month or 6-month EURIBOR with a mark-up, fluctuated between 1.9144% and 2.7598% in 2010, and between 2.2583% and 4.0775% in 2009.
Bills of exchange were issued as loan collateral.
ANNUAL REPORT 2010 Elektro Ljubljana d.d. ANNUAL REPORT 2010 Elektro Ljubljana d.d. 112 FINANCIAL REPORT FINANCIAL REPORT 113
7.12. Inventories 8.4. Labour costs
At the stock inventory, surpluses in the total amount of 10,166 EUR were established Labour costs include salaries and wages calculated in accordance with the company- and deficits in the total amount of 15,907 EUR. The Company has written-off level collective agreement and other applicable regulations regarding the calculation inventories that were no longer useful, because of the changed quality, in the amount of salaries and wages. of 27,797 EUR. Salaries and wages were calculated in the amount of 21,373,837 EUR in 2010 and in the amount of 21,493,359 EUR in 2009. 8. DISCLOSURE OF INCOME STATEMENT ITEMS Other labour costs comprise employee annual leave payments, other employment 8.1. Net sales revenue and other operating revenues earnings, reimbursement of travel-to-work costs, costs of voluntary employee accident insurance and social security costs. Net sales revenue primarily comprises revenues from the sale of electricity, revenues arising from the agreement on the leasing of the electricity distribution infrastructure, 8.5. Write-offs and revenues from the services provided for system operator of the distribution network. Depreciation for 2010 was calculated on the purchase value of fixed assets, as detailed Total net sales revenue amounted to 271,911,381 EUR in 2010, compared with in the chapter depreciation as part of the Summary of Accounting Policies, and 282,880,411 EUR in 2009. represents 94.1% of all write-offs.
Other operating revenues comprise the utilisation and release of non-current accrued Revaluation operating expenses for fixed assets in 2010 are the result of the transfer costs and deferred revenues in the amount of 1,853,832 EUR. From the sale of fixed of fixed assets, and represent 1.8% of all write-offs. assets, revenues in the amount of 64,227 EUR are indicated, and from the utilisation of European Structural Funds, in the amount of 135,891 EUR. Revaluation operating expenses for current assets comprise value adjustments to receivables from customers arising from doubtful and disputed receivables. In 2010, these increased by 62.9% over 2009. 8.2. Capitalised own products and services
Capitalised own products and services include capitalised fixed assets, which 8.6. Other operating expenses in accordance with Slovene Accounting Standards are valued at the costs directly associated with them, and based on general construction and manufacturing costs Other operating expenses are provisions for severance payments at the retirement, which can be attributed to them. These revenues amounted to 9,520,455 EUR in fees for the use of the building land, scholarships and payments to secondary school 2010, compared with 14,492,590 EUR in 2009. They represent 3.4% of operating students undergoing mandatory practice. revenues, compared with 4.8% in 2009. 8.7. Financial revenues
8.3. Costs of goods, material and services Financial revenues from non-current receivables comprise interest income from long- term loans to employees for the purchase of apartments owned by the Company, while The costs of goods and materials primarily include the purchase of electricity, which financial revenues from operating receivables mostly includes default interest for amounted to 196,117,438 EUR in 2010, compared with 210,631,916 EUR in 2009. belated payments for the supply of electricity.
Costs of material are the costs of material used for the own investments, costs of material used for services rendered to others and for the regular maintenance of 8.8. Financial expenses facilities and devices. Financial expenses for the interest rates from loans amount to 2,686,911 EUR. Costs of services amounted to 14,270,769 EUR in 2010, and to 16,585,805 EUR in Financial expenses from the currency exchanges for the loans granted in CHF, amount 2009 and mainly comprise fixed assets maintenance costs, insurance premiums and to 1,030,097 EUR. When the contract for the implemented financial instrument was other current operating costs. terminated, the Company recorded 1,840,707 EUR on the account of impairment. Other expenses from interests mostly pertain to liabilities to suppliers.
ANNUAL REPORT 2010 Elektro Ljubljana d.d. ANNUAL REPORT 2010 Elektro Ljubljana d.d. 114 FINANCIAL REPORT FINANCIAL REPORT 115
8.9. Other revenues 10. OFF-BALANCE SHEET ITEMS
Other revenues include compensation received from insurance companies for damage resulting from machine breakdown and fire insurance in the amount of 1,656,185 OFF-BALANCE SHEET ITEMS AS AT 31 DECEMBER 2010 in EUR (rounded) EUR. Other revenues include the amount under the Court Decision on the reduction of penalty of the Competition Protection Office in the amount of 3,408,118 EUR. 31 December 31 December 2010 2009 Bills of exchange 123,841,336 95,683,573 8.10. Other expenses Guarantees 25,478,826 9,694,315 Small inventory and protective equipment in use 2,167,550 2,170,686 In 2010, other expenses include expenses for the return of the overcharged electricity Real estate and equipment of SODO d.o.o. 8,135,896 0 consumption due to the alleged concerted increase of electricity prices in 2009 in the Contingent liabilities 0 2,635,222 amount of 3,264,641 EUR. Total off-balance sheet liabilities 159,623,608 110,183,796
The remaining other expenses were incurred by fines, damages, donations and finan Bills of exchange represent collateral for loans raised. Their value is equal to the value cial assistance. of loans that the Company raised from the lenders holding the bills of exchange.
Guarantees in 2010 comprise performance guarantees issued and received, for 8.11. Net profit for the financial year contracts obtained via public tenders.
The Company generated a net profit of 1,347,772 EUR for the 2010 financial year. The distribution of net profit for the 2010 financial year and accumulated profit from 11. DISCLOSURE OF EVENTS WITH RELATED PARTIES 2009 is in section 7.6. As at 31 December 2010 and 31 December 20089 the Company held receivables from Profit in 2009 totalled amounted to 976,786 EUR. and liabilities to related parties arising from the normal flow of operations as follows:
If the Company made a general capital revaluation adjustment based on growth in EUR (rounded) in the consumer price index in 2010 (1.9%), it would have disclosed a net loss of 31 December 31 December 3,637,091 EUR. 2010 2009 Balance sheet Assets 8.12. Total comprehensive yield of the financial period Receivables from EL OVE d.o.o. 57,676 40,431 The total comprehensive yield of the financial year 2010 amounts to 1,204,687 EUR Liabilities and is for 143,085 EUR smaller than net profit or loss of the current year, due to the Liabilities to suppliers - Informatika d.d. Maribor 859,419 859,419 changes of surplus from revaluated financial investments available for sale. Compared Liabilities to suppliers - EL OVE d.o.o. 241,409 186,108 to 2009, the total comprehensive operating yield is higher for 3.6% Income statement Revenues from service - EL OVE d.o.o. 239,130 223,595 Costs of services - Informatika d.d. Maribor 3,393,061 3,905,452 9. COSTS BY FUNCTIONAL GROUPS Cost of electricity purchase - EL OVE d.o.o. 730,267 946,116
2010 2009 Production costs 270,308,951 EUR 286,237,966 EUR Sales costs 868,491 EUR 1,138,557 EUR Costs of general activities 6,343,257 EUR 7,972,069 EUR
ANNUAL REPORT 2010 Elektro Ljubljana d.d. ANNUAL REPORT 2010 Elektro Ljubljana d.d. 116 FINANCIAL REPORT FINANCIAL REPORT 117
12. DISCLOSURE OF REMUNERATION RECEIVED BY MEMBERS OF THE In 2010, Elektro Ljubljana d.d., acting as a transferring company, shall perform a MANAGEMENT BOARD, EMPLOYEES EMPLOYED ON THE BASIS OF partial division as one of forms of the company division, under the provisions of INDIVIDUAL CONTRACTS AND MEMBERS OF THE SUPERVISORY BOARD Article 623 of the Companies Act. In this procedure, the Company shall transfer the activity, employees, funds and debts, functionally related to the purchase and sale of Gross incomes of the Management Board for 2010: electricity. In the process of the partial division, the shares of the new company shall • Mirko Marinčič, MSc received a salary in the amount of 15,770 EUR, reimbursement be ensured to the transferring company Elektro Ljubljana d.d., who shall be the only of costs in the amount of 467 EUR and bonuses in the amount of 2,302 EUR, in shareholder of the new subsidiary, where the property shall be transferred to. total 18,533 EUR. • Andrej Ribič received a salary in the amount of 63,873 EUR, reimbursement of costs in the amount of 1,065 EUR, loyalty bonus in the amount of 1,728 EUR and 15. DENATIONALISATION CLAIMS bonuses in the amount of 5,296 EUR, in total 73,489 EUR. Two hydropower plants remain the property of the Company, with the Sava Brod Gross incomes of the members of the Supervisory Board: hydropower plant being subject to denationalisation proceedings. Due to the nature of • the President, Andrej Šušteršič, Msc received meeting expenses in the amount of the dispute, we are unable to report on possible legal outcomes. 8,980 EUR and reimbursement of costs in the amount of 175 EUR, • member, Marjan Rekar, Ph.D. received meeting expenses in the amount of 6,909 EUR and reimbursement of costs in the amount of 53 EUR, 16. AUDITING COSTS • member, Jasna Kalšek received meeting expenses in the amount of 6,909 EUR and reimbursement of costs in the amount of 113 EUR, The costs of auditing the Company’s financial statements in 2010 totalled 12,808 EUR • member Aleš Šaver received meeting expenses in the amount of 6,909 EUR, less VAT. • member Mitja Fabjan received meeting expenses in the amount of 6,909 EUR, • member Virna Konrad received meeting expenses in the amount of 1,749 EUR, • member Egon Hoda received meeting expenses in the amount of 5,159 EUR. 17. PUBLIC UTILITY COMPANY – REPORTING IN ACCORDANCE WITH THE ENERGY ACT Gross incomes of the people, employed on the basis of individual contracts, amounted to 979,553 EUR in 2010, reimbursement of costs 24,422 EUR, compensation for holidays The sub-balance of assets and liabilities for the sale of electricity and for other 24,305 EUR, loyalty bonuses 10,829 EUR, performance bonuses 3,971 EUR, bonuses activities, and the income statement of the Company broken down into income 42,710 EUR and severance payments 88,561 EUR, in total 1,043,080 EUR. statements for the sale of electricity and for other activities are compiled for analytical and other needs. On 31 December 2010, there were 14 employees and on 31 December 2009, 15 employees, who were employed on the basis of the individual contract. The Company did not have any outstanding receivables, issued sureties or liabilities The criteria by which assets, liabilities, revenues and expenses are allocated to the sale to the aforementioned groups as at 31 December 2010. of electricity and other activities are as follows:
1. Assets and liabilities, and revenues and expenses are accounted for separately for 13. CONTINGENT AND ASSUMED LIABILITIES the sale of electricity and other activities in the Company’s books of account 2. Asset and liability, and revenue and expense items of shared services are broken Various claims have been filed against the Company, and remain open as at 31 December down into individual activities based on the following 2010. However, none of the disputes in question involve significant amounts. • number of employees • proportion of fixed assets of individual activities There is insufficient information to reasonably assess the eventual outcomes of open • revenue generated and filed claims, or to assess the potential cost of losses in individual lawsuits. • amount of costs of goods, materials and services 3. The Company does not cover losses or allocate profits from the sale of electricity or other service activities. 14. EVENTS AFTER THE BALANCE-SHEET DATE The Company does not receive any earmarked grants from the state budget. No other events occurred after the balance-sheet date or prior to the Supervisory Board’s approval of this report on17 March 2011 on the proposal of the Management Board, which would affect the assets and liabilities disclosed as at the balance sheet date.
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SUB-BALANCE SHEET OF ASSETS AND LIABILITIES AS AT 31 DECEMBER 2010 in EUR (rounded) in EUR (rounded) Electricity sales Other market activities Electricity sales Other market activities
A. Non-current assets: 677,016 413,520,521 A. Equity: (654,162) 263,617,724 Intangible fixed assets and non-current deferred costs and I. 406,642 2,565,876 I. Called-up capital 2,908,663 160,504,315 accrued revenues 1 Share capital 2,908,663 160,504,315 1 Long-term property rights 18,326 142,566 II. Capital reserves (7,073,147) 88,798,161 5 Other non-current deferred costs and accrued revenues 388,316 2,423,310 III. Profit reserves 1,062,741 15,878,960 II. Tangible fixed assets 159,637 408,176,160 1 Legal reserves 42,963 1,323,997 1 Land and buildings 420 310,705,467 2 Other profit reserves 1,019,778 14,554,963 a) Land 59 12,860,465 IV. Revaluation surplus 9,340 234,338 b) Buildings 361 297,845,002 V. Net profit or loss brought forward 0 0 2 Production plant and machinery 159,056 83,163,696 1 Net profit from previous years brought forward 0 0 3 Other plant and equipment 136 100,996 VI. Net profit or loss for the financial year 2,438,241 (1,798,050) 4 Tangible fixed assets under acquisition 25 14,206,001
a) Tangible fixed assets under construction and manufacture 25 14,206,001 B. Provisions and non-current accrued costs and deferred revenues: 260,845 45,580,263 b) Advances for tangible fixed assets 0 0 1 Provisions for pensions and similar liabilities 260,845 5,229,698 IV. Non-current financial investments 110,358 2,768,977 2 Non-current accrued costs and deferred revenues 0 40,350,565 1 Non-current financial investments, excluding loans 103,790 2,604,190
a) Shares and participating interests in Group companies 64,624 1,621,466 C. Non-current liabilities: 8,853,544 86,725,317 b) Shares and participating interests in associates 21,898 549,454 I. Non-current financial liabilities 8,853,426 86,591,922 c) Other shares and participating interests 17,268 433,270 2 Non-current financial liabilities to banks 8,853,426 86,591,922 2 Long-term loans 6,568 164,787 II. Non-current operating liabilities 118 133,395 b) Long-term loans to other entities 6,568 164,787 2 Non-current operating liabilities to suppliers 0 130,419 V. Non-current operating receivables 379 9,508 5 Other non-current operating liabilities 118 2,976 3 Non-current operating receivables from other entities 379 9,508
Č. Current liabilities: 28,685,123 54,150,582 B. Current assets: 35,957,329 29,686,140 II. Current financial liabilities 1,434,229 26,966,930 II. Inventories 9,917 1,434,461 2 Current financial liabilities to banks 1,434,030 26,961,957 1 Material 9,917 1,434,461 4 Other current financial liabilities 199 4,973 III. Current financial investments 40,205 14,809 III. Current operating liabilities 27,250,894 27,183,652 2 Short-term loans 40,205 14,809 1 Current operating liabilities to Group companies 0 241,409 a) Short-term loans to other entities 40,205 14,809 2 Current operating liabilities to suppliers 26,229,084 22,329,710 IV. Current operating receivables 35,726,691 28,170,378 4 Current operating liabilities on behalf of third parties 0 42,689 1 Current operating receivables from Group companies 0 57,676 5 Current operating liabilities from advances 699,534 358,184 2 Current operating receivables from customers 33,429,365 27,266,550 6 Other current operating liabilities 322,276 4,211,660 3 Current operating receivables from other entities 2,297,326 846,152 V. Cash and cash equivalents 180,516 66,492 D. Current accrued costs and deferred revenues: 303,170 551,898 C. Current deferred costs and accrued revenues: 814,178 7,419,120 TOTAL LIABILITIES AND EQUITY 37,448,520 450,625,784 TOTAL ASSETS 37,448,520 450,625,784 Off-balance sheet liabilities 29,738,950 129,884,658 Off-balance sheet assets 29,738,950 129,884,658
ANNUAL REPORT 2010 Elektro Ljubljana d.d. ANNUAL REPORT 2010 Elektro Ljubljana d.d. 120 FINANCIAL REPORT FINANCIAL REPORT 121
INCOME STATEMENT OF THE COMPANY PER ACTIVITY FOR THE PERIOD OF 1 JANUARY 2010 TO 31 DECEMBER 2010 in EUR (rounded) Electricity Other market The Management of Elektro Ljubljana d.d. hereby confirms in their entirety the sales activities financial statements, with the accompanying notes, as presented in this Annual Report. 1. Net sales revenue 207,005,817 64,905,564 a) in the domestic market 206,907,039 64,905,564 b) in the foreign market 98,778 0 3. Capitalised own products and services 0 9,520,455 4. Other operating revenues 1,386 2,176,759 Total revenues 207,007,203 76,602,778 5. Costs of goods, material and services 200,090,860 22,418,715 Executive Director of Accounting ELEKTRO LJUBLJANA d.d. a) costs of goods and materials sold and cost of materials used 197,767,652 10,471,154 and Financial Services Andrej Ribič b) costs of services 2,323,208 11,947,561 Mojca Supej, MSc 6. Labour costs 1,578,954 28,592,583 a) salaries and wages 1,173,560 20,200,277 b) supplementary employee pension insurance 52,435 1,002,246 Ljubljana, 30 April 2011 c) social insurances 153,991 3,420,606 č) other labour costs 198,968 3,969,454 7. Amortisation / depreciation and write-offs 818,051 24,764,654 a) Depreciation 97,440 23,966,727 b) revaluation operating expenses for intangible and tangible fixed assets 1,592 455,100 c) revaluation operating expenses for current assets 719,019 342,827 8. Other operating expenses 49,225 726,196 Operating profit or loss 4,470,113 100,630 9. Finance revenues from participating interests 0 0 10. Finance revenues from loans granted 389 16,175 a) Financial revenues from loans to other entities 389 16,175 11. Financial revenues from operating receivables 309,313 167,627 a) financial revenues from operating receivables from other entities 309,313 167,627 12. Financial expenses from impairment and write-offs of financial investments 39 1,842,337 13. Financial expenses from financial liabilities 244,551 3,472,458 a) Financial expenses from loans raised at banks 244,551 3,472,458 14. Financial expenses from operating liabilities 126,738 284,321 a) financial expenses from liabilities to suppliers and liabilities from bills of exchange 125,648 239,056 b) financial expenses from other operating liabilities 1,090 45,265 Net profit or loss from ordinary activities 4,408,487 (5,314,684) Other revenues 3,991,159 1,671,738 Other expenses 3,266,506 142,422 Profit or loss from extraordinary activities 724,653 1,529,316 Corporate income tax 0 0 Net profit or loss for the financial year 5,133,140 (3,785,368)
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I draw energy from here.
ANNUAL REPORT 2010 Elektro Ljubljana d.d. ANNUAL REPORT 2010 Elektro Ljubljana d.d. 124 LIST OF ABBREVIATIONS AND SYMBOLS LIST OF ABBREVIATIONS AND SYMBOLS 125
ANNEX
LIST OF ABBREVIATIONS AND SYMBOLS
AMM Advanced Meter Management LV Low Voltage OU Organisational Unit AMR Automatic Meter Reading SIS Spatial Information System PISELJ Spatial Information System of Elektro Ljubljana BCP Business Continuity Planning CKA Company Collective Agreement
TDB Technical Database DTS Fire Safety CRM Customer Relationship Management RTP Distribution Transformer Station DS Distribution Station DCM Distribution Management Centre SDH / Synchronized Digital Hierarchy / DU Distribution Unit FMX Flexibile Multiplex DEN Distribution Electricity Network SDMS Spatial Data Management System DRC Disaster Recovery Center MV Medium Voltage DSM Demand Side Management CHP Cogeneration of Heat and Power LTD Long Distance Transmission TC Telecommunications GIS Gas Isolation System TS Transformer Station GPS Global Positioning System TR Transformer QCN Quick Communication Network EEU Efficient Energy Use. IP Internet Protocol HV High Voltage CC Cable Conduit OHAS Occupational Health And Safety MCD Metering Control Device WDM Wavelength Division Multiplexing
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Annual Report Elektro Ljubljana d.d. for the year 2010
Publisher: Elektro Ljubljana d.d. Design: Sonja Eržen u.d.i.a. Printing house: DTP Ljubljana Photography: Shutterstock and archive of Elektro Ljubljana Print run: 85 August 2011
ANNUAL REPORT 2010 Elektro Ljubljana d.d. ANNUAL REPORT 2010 Elektro Ljubljana d.d. 128 OPERATING HIGHLIGHTS IN 2010
Positive Energy Networking
ELEKTRO LJUBLJANA Podjetje za distribucijo električne energije, d.d. Slovenska cesta 58, 1516 Ljubljana, Slovenia www.elektro-ljubljana.si
ANNUAL REPORT 2010 Elektro Ljubljana d.d.