HEADQUARTERS: 156, OroPou Str., GR-11146 GALatsI ΜΑY 2009 V Contents 04 I. COMPANY ProFILE I Background – Incorporation I Object – Operations I Outlook I Area of service 14 II. Board OF DIreCtors & MANageMENT I Composition of the Board of Directors I Curricula Vitae of the President, the Managing Director and the General Directors 20 III. HUMAN RESOURCES 26 IV. CorPorate GOVerNANCE 32 V. CORPORATE soCIAL RESPONSIBILITY 38 VI. KEY FINANCIALS 54 VII. ANNuaL BULLetIN I Management Board Members’ statements I Annual Report of the Management Board I Annual Statements for the financial uses ended 31 December 2008 & 2007 according to I.F.R.S. I Independent Auditors’ Report I Published financial data and information I Information of the clause 10 of the law 3401/2005 ANNuaL REPort & ANNuaL BuLLetIN 04 Ι.I. ANNuaL REPort & ANNuaL BuLLetIN 05 COMPANY PROFILE BACKGROUND – INCORPORATION he Athens Water Supply and ‘Greater Athens Sewerage Organization’ Sewerage Company (EYDAP (OAP S.A.). S.A.) is the largest of its kind in Greece. EYDAP S.A. uses In 1999, under the “Issues Related to T state-of-the-art technology, the Athens Water Supply and Sewer- equipment and facilities to supply water age Company and other Provisions” Act to approximately 4,000,000 residents 2744/1999, EYDAP S.A. took its present in the Attica region through an exten- legal form, as all of its major assets sive network of almost 2,000,000 water were transferred to the company ‘EY- meters and a 9,000 km of water pipes. DAP Assets’ (Legal Entity under Public The sewerage sector serves 3,300,000 Law), thus remaining the property of the residents with sewers spreading at al- State. ‘EYDAP Assets’ is the owner of most 6,500 km. dams, reservoirs, water towers, pump- ing stations and all other facilities that EYDAP was founded in 1980 under the allow water to be transferred safely to “Incorporation of a Single Water Sup- treatment plants. Pursuant to an agree- ply and Sewerage Company for Greater ment signed between EYDAP S.A. and Athens” Act 1068/1980, pursuant to a the Greek State in December 1999, EY- merger of the incumbent water suppli- DAP S.A. continues to operate the said er in Athens and Piraeus ‘Hellenic Wa- facilities on behalf of ‘EYDAP Assets’. ter Company S.A.’ (EEY S.A.), and the 06 In January 2000, EYDAP S.A. was listed EYDAP’s company-owned headquarters on the Main Market of the Athens Stock are located in the Municipality of Galat- Exchange. si, at 156, Oropou str.,. 111 46, tel.: 210- 214.4444. It should be noted that in 2005 the “State Companies and Organizations (DEKO)” Act 3429/2005 was passed, stipulating specific provisions for such entities. More precisely, publicly held companies (listed on a stock exchange) in which the State holds majority or minority stakes, are not considered as ‘State-Owned’. Those com- Y N panies are managed, organized and oper- ILE F ate under Companies Act 2190/1920 and “Corporate Governance” Act 3016/2002. compa pro I. OBJECT– OPERATIONS YDAP’s object is stipulated lated, energy-related, and sundry other in Law 2744/1999 and its services, and to exploit the water sup- amendments, as described ply and sewerage system for other par- in the Joint Decision of the allel objects, such as the deployment of EMinisters of Economy, Fi- telecommunications-related and energy- nance, Environment, Physical Planning related operations, as an exception to and Public Works. The company’s ob- the prohibitions of article 11, par. 8 of Law ject is: 2744/1999 and upon condition that the safe and reliable operation of the system (a) To provide water-supply and sewer- is not jeopardized. age services, as well as to design, con- struct, install, operate, manage, maintain, (c) To explore and exploit natural springs expand and upgrade water-supply and and water resources, produce bottled wa- sewerage systems. These activities and ter and sundry other refreshments or bev- projects include the pumping, desalina- erages that contain water. tion, processing, storage, transfer, distri- bution and management of all kinds of (d) To utilize know-how and offer techni- water, as a means of serving EYDAP’s ob- cal support. ject. Other activities and projects include the collection, transfer, process, storage, (e) To undertake investments related to management and disposal of wastewater the scope and object of the company. treatment products. Under article 2 of Law 2744/1999, EY- (b) To provide telecommunications-re- DAP has been granted the exclusive right ANNuaL REPort & ANNuaL BuLLetIN 07 Ι. I. compacompaNNYY proproFFILEILE 08 to provide water-supply and sewerage co-financed by EU’s Cohesion Fund. EY- services in the geographical area of its DAP may retrospectively collect the sub- jurisdiction for a period of 20 years, com- sidy provided by the Cohesion Fund, for mencing on October 25, 1999. It is noted costs incurred after the adoption of Law that due to the nature of the product and 2744/1999. existing infrastructure, the provision of water-supply and sewerage services is a natural monopoly. Under Law 2939/2001 (Government Ga- zette 179/06-08-2001), EYDAP continues to be the exclusive client of projects re- Y N lated to the entire water supply system ILE F of the Greater Attica region, even af- ter the adoption of Law 2744/1999. The compa pro said projects include those which are I. OUTLOOK EYDAP’s investment program 2.2 Business Development - New Opera- aims to materialize the com- tions pany’s objectives. It is based 2.3 Reduction of Operating Costs by on four key fields of action Modernizing Business Functions that underline the company’s Eutility aspect and its desire to bring value [ ] Enhancement of Efficiency 3 to shareholders: and Overall Performance [1] Environmental Protection- 3.1 Modernization of Corporate Structure Upgrade of Water Supply and Internal Procedures and Sewerage Infrastructure 3.2 Productivity Enhancement 1.1 Upgrade of existing water supply [4] Enhancement infrastructure of Customer Service 1.2 Completion of renovation of Water Treatment Plants (WTP) 4.1 Modernization of Customer Service 1.3 Modernization of sewerage network Methods 1.4 Upgrade of existing Wastewater Treat- 4.2 Enhancement of Processes and Mod- ment Plants (WWTP) ernization of the Customer Service Policy and Rules [2] Profitability Improvement 2.1 Geographic Expansion in Greater Athens ANNuaL REPort & ANNuaL BuLLetIN I. compaNY proFILE 09 10 AREA OF SERVICE YDAP’s area of service is the for a period of 20 years. The said dura- greater metropolitan area tion and its renewal are specified in the of Athens, as determined Agreement signed between EYDAP and by Law 1068/1980, under the Greek State. This Agreement was Ewhich the company has been signed in December 1999. incorporated. Moreover, under Law 2744/1999, EYDAP has the exclusive More specifically, EYDAP’s area of serv- right to provide water-supply and sew- ice covers the following Municipalities Y N erage services in the geographical area and Communities, either directly (retail) ILE F of its jurisdiction. This right is non-trans- or through bulk water supply: ferable and non-delegable, and applies compa pro I. MUNICIPALITies AND COMMUNITies MUNicipALITies AND CommuNITies WITHIN EYDAP’S JURISDICTION AREA ouTsiDE EYDAP’S JURisDicTioN AREA Water supply with or without Direct Water Supply from EYDAP participation of EYDAP in the local network operations Bulk Water Supply to the Municipality Network (*) Combined water supply system (**) ANNuaL REPort & ANNuaL BuLLetIN 11 MUNicipalities AND CommuNities withiN EYDAP’S Area OF Service DiRecT WATER SuppLY FRom EYDAP Piraeus Psihiko Alimos Selinia (Municipality of Ambelakia) Ag. Anargiri Tavros Ag. Dimitrios Thracomakedones Ag. Ioannis Rentis Vironas Ag. Paraskevi Voula Ag. Varvara Vouliagmeni Argiroupolis Zefiri Aspropyrgos Zografou Athens Dafni BULK WATER SuppLY TO MUNicipAL NeTwoRKS (*) Drapetsona Egaleo Anixi Elefsina Ano Liossia Elliniko Artemida (Loutsa) Filothei Balas (current Community of Rodopolis) Y Haidari Dionysos N Drosia ILE Halandri F Heraklion Ekali Holargos Keratea Ilion Kouvaras compa pro Ilioupolis Kropia Imittos Mandra Kallithea Marathon Kamatero (District of Municipality of Ambelakia, Markopoulos Salamina) N. Erythrea Keratsini Peania Kessariani Spata Ι. Korydallos Vrilissia Likovrissi Melissia JoiNT WATER SuppLY SYSTem (**) Metamorphosis Acharne Moschato Amarousion N. Chalkidona Eantio Salaminas N. Ionia Galatsi N. Penteli Gerakas N. Philadelphia Glyka Nera N. Psihiko Glyfada Nea Smyrni Kalyvia Nikea Kifissia P. Faliro N. Peramos Papagou Pallini (Kantza Area) Pefki Penteli Perama Salamina Peristeri Vari Petroupolis MUNicipalities AND CommuNities outside EYDAP’S Area OF Service Lavreotiki Magoula Afidne (Kiourka) Malakasa Agistri Markopoulos Oropou Ag. Stefanos Megara Ag. Konstantinos N. Makri Ambelakia in Salamina Island (apart from Oropos Kamatero and Selinia) P. Fokea Anavyssos Pallini (apart from Kantza) Anthoussa Pikermi Egina Polydendri Enoe Rafina Erythre Saronida Fyli Stamata Grammatiko Sykamino Kalamos Varnavas Kapandriti Villia Kryoneri * Areas serviced by EYDAP via Municipal or Community networks. EYDAP is not involved nor is responsible for the operation of these local networks. ** Areas serviced by means of a joint system, i.e. partly covered by EYDAP’s network and partly by local private or municipal networks. 12 Moreover, there is a number of Munici- and the Agreement that EYDAP signed palities, Communities and Settlements with the Greek State in December 1999, outside EYDAP’s geographical jurisdic- the cost for this raw water will be set off tion, yet serviced by EYDAP through against the cost incurred by EYDAP for bulk water supply to local authorities the maintenance and operation of the as- and without EYDAP’s involvement in the sets that belong to ‘EYDAP Assets’ (Legal operation of the local networks. Finally, Entity under Public Law). EYDAP supplies water to certain islands that belong to the Cyclades Prefecture, as well as to various towns in Prefectures along the Mornos and Yliki reservoirs.