2019 Annual Report of Elektro Primorska, D. D. and the Elektro Primorska Group

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2019 ANNUAL REPORT OF ELEKTRO PRIMORSKA, D. D. AND THE ELEKTRO PRIMORSKA GROUP 2019 ANNUAL REPORT OF ELEKTRO PRIMORSKA, D. D. 2019AND THE ELEKTRO PRIMORSKA GROUP A. BUSINESS REPORT 1. REPORT BY THE MANAGEMENT BOARD. 8 2. STATEMENT OF MANAGEMENT'S RESPONSIBILITIES . .10 3. SUPERVISORY BOARD REPORT. .11 4. CORPORATE GOVERNANCE STATEMENT . .14 4.1 Declaration of compliance with the Corporate Governance Code . 14 4.2 Compliance with the recommendations and expectations of the Slovenian Sovereign Holding . 14 4.3 Internal control and risk management system relating to the financial reporting and auditing. 14 4.4 Holding of securities of a company, in terms of achieving a qualifying holding, as defined by the law governing the takeovers, ownership of securities ensuring special control rights, restrictions on voting rights . 14 4.5 Management Board. .15 4.5.1 Appointment and composition. .15 4.5.2 Responsibilities and functions. .15 4.5.3 Remuneration of the Management Board. .15 4.6 Supervisory Board . .15 4.6.1 Appointment and composition. .15 4.6.2 Competence and functions . .15 4.6.3 Remuneration of members of the Supervisory Board and Supervisory Board Committees . 16 4.7 General Meeting of Shareholders . 16 4.8 Governance of the parent company and the Group. 16 5. PRESENTATION OF THE COMPANY . 17 5.1 Company Profile. .17 5.2 Mission, vision and business culture of the Company . .17 5.2.1 Mission of the Company . .17 5.2.2 Vision of the Company. 18 5.2.3 Business culture . 18 5.3 The regulatory framework of the Company's activities in the sphere of power supply . 18 5.4 Organisation of the Company. 19 6. HUMAN RESOURCE MANAGEMENT in 2019 . .20 6.1 General . 20 6.2 Age structure of employees . .21 6.3 Structure of employees according to the years of service . 22 6.4 Structure of employees according to gender . 22 6.5 Educational structure of employees of Elektro Primorska and the Elektro Primorska Group . 23 6.6 Employees with disabilities . 24 6.7 Education of employees. 24 6.8 Care for employees . .24 6.9 Vocational health and safety . 24 6.10 Voluntary supplementary pension insurance . 25 6.11 Accident insurance. 25 6.12 Other activities that affect the well-being of employees . 25 7. REALISATION OF THE ANNUAL GOALS IN 2019 . 26 8. ELECTRIC POWER DISTRIBUTION . .27 8.1 Services for SODO . 28 8.1.1 Achievement of the set goals and comparison with 2018 . 28 8.2 Investments . ..

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