Annual Bulletin 2005
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ANNUAL BULLETIN 2005 ATHENS WATER SUPPLY AND SEWERAGE COMPANY S.A. ATHENS JUNE 2006 EYDAP S.A. Annual Bulletin 2005 ANNUAL BULLETIN 2005 EYDAP S.A. 2006 Athens Water Supply & Sewerage Company Headquarters: 156 Oropou str, Galatsi Athens In accordance with the Hellenic Capital Market Committee Decision no 7/372/2006, which replaced the Decision 5/204/2000. 2 / 95 EYDAP S.A. Annual Bulletin 2005 TABLE OF CONTENTS BOARD OF DIRECTORS, GENERAL AND DEPUTY GENERAL MANAGERS............. 3 INFORMATION FOR THE PREPARATION OF THE ANNUAL REPORT....................... 3 GENERAL INFORMATION FOR THE COMPANY............................................................... 3 PERSONNEL.................................................................................................................................... 3 SHAREHOLDERS OWNERSHIP – SHARE PERFORMANCE............................................. 3 FINANCIAL INFORMATION..................................................................................................... 3 MANAGEMENT REPORT OF THE BOARD OF DIRECTORS ........................................... 3 AUDITORS' REPORT.................................................................................................................... 3 FINANCIAL STATEMENTS........................................................................................................ 3 CONDENSED FINANCIAL DATA AND INFORMATION ................................................. 3 INFORMATION ACCORDING TO ARTICLE 10 OF LAW 3401/2005................................ 3 3 / 95 EYDAP S.A. Annual Bulletin 2005 BOARD OF DIRECTORS, GENERAL AND DEPUTY GENERAL MANAGERS The composition of the Board of Directors of EYDAP for the year 2005 was: President of the Board Konstantinos A. Kostoulas* (executive member) Managing Director Antonios M. Bartholomaios* (executive member) Members (non executive) Evaggelos A. Baltas Athanasios Ch. Manouris Alexios N. Spiropoulos Grigoris E. Zafeiropoulos Nikolaos I. Sigalas Anna A. Giannouli Georgios D. Mastraggelopoulos Antonios N. Protonotarios Philippos-Theodoros Georgakellos * Konstantinos N. Galanis Evaggelos N. Moutafis * During the meeting of the Bord Directors on the 25-5-2005 Mr Philippos – Theodoros Georgakellos was elected as a new non executive member, replacing Mr Iosif Gliniadakis who resigned. In the same meeting Mr Konstantinos Kostoulas was elected as President of the Board ans Mr Antonios Bartholomaios was appointed as Managing Director. Both Mr Konstantinos Kostoulas and Mr Antonios Bartholomaios are considered executive Board members. General Managers Responsibility Konstantinos Fidetzis Networks Paraskevi Kourti-Lagara Human Resource and Development Nikolaos Perdiou Treatment Plants Nikolaos Tsoukas Large Works Konstantinos Villiotis Administration & Finance Deputy General Managers Responsibility Konstantinos Galanis Networks Aikaterini Konstantopoulou Treatment Plants Maria Ganou Administration & Finance Nikolaos Kazaras Administration & Finance 4 / 95 EYDAP S.A. Annual Bulletin 2005 INFORMATION FOR THE PREPARATION OF THE ANNUAL REPORT The current annual report includes information and financial data, which is necessary for investors and financial advisors to properly evaluate the company’s net worth, its financial condition, the results and prospects of the company “ATHENS WATER SUPPLY AND SEWERAGE COMPANY SA” (herein, “Company” or “EYDAP”). The investors that are interested in more information can contact, during working hours with the Company’s Bureau, 156, Oropou str., Galatsi 111 46 Athens (Contact Person Dr. Elias Dedoussis, tel. 210-214.4049). The preparation and distribution of the current Annual Report is in accordance with the Hellenic Capital Market Committee Decision no 7/372/2006, which replaced the Decision 5/204/2000. Responsible for the compilation and accuracy of the data contained herein are: Mr. Antonis Bartolomaios, Managing Director EYDAP Ms. Maria Ganou, Deputy General Director of Administration and Finance Ms. Evaggelia Kakkou, Director of Financial Services of EYDAP Deloitte audited the financial reports for fiscal year 2005 and conducted the auditor’s report. The Board of Directors of the Company states that all its members have been notified of the contents of the current Annual Report and together with the Editors state responsibly that: ¾ All information and data contained herein is complete and true. ¾ No other data exists, nor have other events taken place, nor is there hidden or intentionally omitted information, which would render any part of this document or the information or data provided, misleading. ¾ There are no legal decisions pending against EYDAP or mediations, which would have considerable consequences on the financial condition of the company, except those referred to in the Auditors’ Certificate. The financial statements as well as the Auditor’s report are posted on the company’s official website www.eydap.gr , section “Financial Reports”/”Balance Sheet”. 5 / 95 EYDAP S.A. Annual Bulletin 2005 GENERAL INFORMATION FOR THE COMPANY History - Introduction The Athens Water Supply and Sewerage Company (EYDAP SA), is the largest company in Greece operating in the water market. EYDAP SA, using the most up-to–date scientific standards, supplies over 4.000.000 inhabitants of Attica with potable water, through an extensive network that includes 1.867.473 metered connections and a total length of pipes of 8.169 km. The sewerage sector serves 3.300.000 inhabitants, with a total length of pipes of 5.914 km. EYDAP was founded in 1980 with the enactment of Law 1068/1980 “for the establishment of an Integrated body for the provision of water and sewerage services of the Capital”, after the merging of the Hellenic Water Company of Athens, Piraeus and Suburbs (E.E.Y.) and the Sewerage Organization of Athens (O.A.P.). In 1999, with the enactment of Law 2744/1999, EYDAP SA took on its current legal form, with the primary fixed assets of the company passing into the ownership of the newly formed “Fixed Assets Company EYDAP NPDD1”, a company remaining in the public sector. The Fixed Assets Company EYDAP NPDD owns the dams, the reservoirs, the external raw water aqueducts and pumping stations, as well as all other installations that ensure the secure transfer of water until it reaches the Water Treatment Plants. However, based on a signed agreement between EYDAP and the Hellenic Republic in December 1999, EYDAP SA continues to operate the aforementioned works on behalf of the Fixed Assets Company EYDAP NPDD. In January 2000, EYDAP SA went public on the Athens Stock Exchange. It is important to mention that in 2005 the parliament passed a new law, Law 3429/2005, which refers to Public Utilities Organisations. According to Law 3429/2005 Public Utilities whose major shareholder is the State, like EYDAP S.A., no longer can be consider as Public Companies. According to the new law such utilities are organised, managed and function according to Law 2190/1920 “about Incorporated Companies” and Law 3016/2002 “about Corporate Governance”. The Company headquarters are located in the Municipality of Galatsi, at the following address: 156 Oropou Street, Galatsi, 111 46 Athens, Greece. Phone number: +30 210 214-4444. 1 NPDD is a Greek acronym which translates as “Public Sector-Legal Entity” 6 / 95 EYDAP S.A. Annual Bulletin 2005 The Management of the Company is housed in a privately building at Ilisia, (, Ilision str & Laodikias, 15771, tel.: 210-749.5555. Corporate Objectives – Business Operations The Law 2744/1999 and its modifications define the Corporate Objectives, as stipulated in the Joint Ministerial Decision of the Ministries of National Economy, Finance and Environment, Physical Planning and Public Works. These objectives are as follows: Water and sewerage service provisions, as well as design, construction, installation, operation, utilization, management, maintenance, expansion and renewal of water supply and sewerage systems. In addition to the above activities, the objectives include the pumping, desalination, treatment, storage, transfer, and distribution of all kinds of water. Collection works and procedures, transfer, storage, treatment, as well as management and distribution of the wastewater treatment products are included. Telecommunications, energy and other related service provisions. Use of water supply and sewerage systems for other purposes, such as the development of telecommunications and energy related business activities according to the restrictions stated in par. 8, article 11 of Law 2744/1999 and under the condition that they do not influence the safe and reliable operation of the system. The realization of investments as stipulated in paragraphs 3 and 4 of article 4 of the Articles of Incorporation of EYDAP (Government Gazette no 2138/B’/9-12-1999) (Modification of Incorporation Government Gazette no 667/27-1-2003). Based on article 2 of Law 2744/1999, EYDAP has been granted the exclusive right to offer water supply and sewerage services in the geographical region of its jurisdiction for a period of 20 years, beginning October 25th, 1999. It should be pointed out that water supply and sewerage services, due to the nature of the product and the existing infrastructure (underground network mains), constitute of a natural monopoly. In accordance with Law 2939/2001 (Government Gazette no 179/6-8-2001), EYDAP continues, after the enactment of Law 2744/1999, to be the sole and exclusive body with the authority to realize projects related to the water supply network in the