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 greater Attica region. The projects co-financed by the Cohesion Fund of the European Union are included within this framework. EYDAP has the right to collect all subsidies granted by the Cohesion Fund retrospectively, for the amounts deposited or due after the enactment of Law 2744/1999.
7 / 95 EYDAP S.A. Annual Bulletin 2005
Area of Jurisdiction
EYDAP’s area of jurisdiction was originally defined in Law 1068/1980 as the greater metropolitan area of Athens, which initially founded the company. In conjunction to the above, in accordance to Law 2744/1999, EYDAP has the exclusive right to offer water supply and sewerage services in the geographical region of its jurisdiction. This right is undeniable and non transferable. The duration of this right, as well as its renewal, are regulated by the Agreement signed by the Hellenic Republic and EYDAP. This Agreement was signed December 9th, 1999 and is valid for 20 years with the option of renewal.
The area of jurisdiction covers, directly or through important provisions, the administrative boundaries of the following local Municipalities and Communities: Ag. Anargiri, Ag. Varvara, Ag. Dimitrios, Ag. Ioannis Rentis, Ag. Paraskevi**, Athens, Aegaleo, Alimos, Amarousion**, Anixi*, Ano Liossia*, Argiroupolis, Aspropyrgos**, Artemida (Loutsa)*, Acharne**, Balas (Rodopolis)*, Dafni, Dionysos*, Drapetsona, Drosia*, Eantio Salaminas**, Ekali*, Elefsina, Elliniko, Filothei, Galatsi**, Gerakas*, Glyfada, Glyka Nera**, Haidari, Halandri, Heraklion, Holargos, Ilioupolis, Imittos, Kallithea, Kalyvia*, Kamatero, Kamatero (District of Municipality of Ambelakia), Kantza**, Keratea*, Keratsini, Kessariani, Kifissia**, Koropi*, Korydallos, Kouvara*, Likovrissi*, Mandra*, Marathon*, Markopoulos*, Melissia, Metamorphosis, Moschato, N. Chalkidona, N. Erythrea*, N. Ionia, N. Liossia (Ilion), N. Penteli, N. Peramos, N. Philadelphia, N. Psihiko, Nea Smyrni, Nikea, P. Faliro, Papagou, Peania*, Pefki, Penteli**, Perama, Peristeri, Petroupolis, Piraeus, Psihiko, Salamina**, Selinia (Municipality of Ambelakia), Spata*, Tavros, Thracomakedones, Vari**, Vironas, Voula, Vouliagmeni, Vrilissia*, Zografou, Zefiri.
There are also Municipalities, Communities and Districts, that are outside EYDAP’s jurisdiction. EYDAP, however, provides bulk water to some of these local authorities that are in turn responsible for the operation of the local network. These Municipalities are: Aegina, Agistri, Ag. Konstantinos, Ag. Stefanos, Anavyssos, Ambelakia in Salamina Island (apart from Kamatero and Selinia), Anthoussa, Afidne (Kiourka), Cyclades, Charakas (District of Legrena – P. Fokea), Enoe, Erythre, Fyli, Grammatiko, Kalamos, Kavaliani, Kapandriti, Kryoneri, Lavreotiki, Magoula, Markopoulos Oropou, Megara, N. Makri (District of n. Voutza), N. Palatia, N. Peramos, P. Fokea, Pallini (apart from Kantza), Pikermi, Polydendri, Rafina (Districts of Zoumperi, Ag. Andreas, Hospital of Daou Pentelis), Saronida, Skala Oropou, Stamata, Varnavas, Villia. Finally, EYDAP supplies with water several Municipalities along the Mornos and Yliki Aqueducts.
8 / 95 EYDAP S.A. Annual Bulletin 2005
It is important to mention that Law 2744/1999 and the Joint Decision of the Ministers of National Economy, Development, Environment, Physical Planning and Public Works, provides EYDAP the ability to expand its activities to regions inside or outside of Attica. As a precondition to expanding its activities, EYDAP must first examine and ensure the effectiveness of the investment, as well as ensure that the Company has the necessary funds for this purpose, so as it is in position to fulfil its obligations.
In order to ensure the water supply of the metropolitan area of Athens, EYDAP procures raw water from the Greek Government, who has agreed to secure it from appropriate sources and to supply it to EYDAP. In accordance with Law 2477/99 and the December 1999 agreement between EYDAP and the Hellenic Republic, up until the year 2004, the price for the raw water provided by the Greek Government will be off-set by the cost of the services EYDAP provides for the maintenance and operation of the fixed assets that belong to Fixed Assets Company EYDAP NPDD.
* Districts where EYDAP supplies through the Municipality or the Community without being responsible or participating in the operation of the local internal network. ** Districts with mixed water supply network, namely districts where some parts are covered by EYDAP and others are covered either by private network or by the Municipalities.
9 / 95 EYDAP S.A. Annual Bulletin 2005
PERSONNEL
The number of employees during the period 2001-2005 has evolved as follows:
st PERSONNEL (as of 31 of December)
Category 2001 2002* 2003 2004 2005 Administration-Finance 1.329 1.327 1.312 1.268 1.217 Technical 1.511 1.534 1.609 1.579 1.520 Information Technology 85 87 91 84 79 Medical - Hygiene Staff 39 43 49 49 49 Technical Workers 1.039 1.000 1.088 1.029 966 Special Duties 232 228 215 203 185 Lawyers 24 24 24 24 23 Journalists 1 1 1 1 1 Management 2 1 1 3 3 Total 4.262 4.245 4.390 4.240 4.043 New personnel 6 119 320 23 8 Retirements 155 136 175 173 205 Payroll (M€) 116 126,7 134,5 145,7 146,9
*Since February 2002 travelling expenses are included in the payroll and are taxed by 15%.
The total number of Company’s Employees as of 31/12/2005 was 4.043 people, compared to 4.240 for the year 2004.
Personnel
4.600 4.400 4.200 4.000 3.800 2001 2002 2003 2004 2005
10 / 95 EYDAP S.A. Annual Bulletin 2005
SHAREHOLDERS OWNERSHIP – SHARE PERFORMANCE
3.1. Shareholders Ownership The shareholders ownership on 31/12/2005 was as following:
Shareholders Shareholder % Number of Shares Number Greek State 61,03 65.000.000 1 Agricultural Bank of Greece 10,00 10.648.800 1 Legal Entities 12,70 13.525.658 208 Investing Public 16,27 17.325.542 49.303 Total 100,00 106.500.000 49.513
Shareholders Composition 31/12/2005
16,27 %
Greek State 12,70 % Agricultural Bank of Greece Legal Entities 61,03 % General Investing Public 10,00 %
Dividends and Profit per Share
Profit/Share (after taxes) Dividend 2001 0,65 € 0,22 € 2002 0,27 € 0,10 € 2003 0,36 € 0,13 € 2004 0,05 € 0,06 € 2005 0,19 € 0,07 (Proposed at AGM)
11 / 95 EYDAP S.A. Annual Bulletin 2005
3.2. Share Performance
Share Perfomance 2005
9 AVERAGE PRICE 2005 6,41 €
8
7
6
5
4 DAILY STOCK PRICES 3
2
1
0 3/1 9/5 6/6 4/7 1/8 17/1 31/1 14/2 28/2 14/3 28/3 11/4 25/4 23/5 20/6 18/7 15/8 29/8 12/9 26/9 7/11 5/12 10/10 24/10 21/11 19/12
3.3 General Annual Stock Figures Closing Average High Low January 5,96 5,42 6,30 4,74 February 5,90 5,90 6,20 5,66 March 5,88 5,83 6,18 5,52 April 5,84 5,91 6,16 5,72 May 5,70 5,69 5,92 5,42 June 5,96 5,88 6,18 5,62 July 7,34 6,31 7,44 5,74 August 6,66 7,01 7,32 6,58 September 7,50 7,04 7,90 6,66 October 7,42 7,43 7,78 7,18 November 7,14 7,19 7,74 6,88 December 7,20 7,14 7,48 7,00
No. of Shares Marketability Marketability Average Stock Value (% of total shares) (% of shares in market)
January 5.785.861 5,43% 18,75% 577.230.000 February 2.648.545 2,49% 8,58% 628.350.000 March 3.403.188 3,20% 11,03% 620.895.000 April 1.177.194 1,11% 3,82% 629.415.000 May 978.091 0,92% 3,17% 605.985.000 June 2.205.297 2,07% 7,15% 626.220.000 July 3.211.309 3,02% 10,41% 672.015.000 August 2.281.794 2,14% 7,40% 746.565.000 September 4.551.596 4,27% 14,75% 749.760.000 October 2.571.003 2,41% 8,33% 791.295.000 November 4.796.183 4,50% 15,55% 765.735.000 December 2.577.171 2,42% 8,35% 760.410.000
12 / 95 EYDAP S.A. Annual Bulletin 2005
FINANCIAL INFORMATION
1. WATER CONSUMPTION
TABLE 1
WATER SUPPLY CONSUMPTION
(in million m3) 2003 2004 2005 Water consumption invoiced 310,6 312,2 318,1 Unaccounted for water 88,9 92,4 76,7 Water distributed for free - discounts 5,1 5,1 5,5 TOTAL 404,6 409,7 400,3 % Unaccounted for water to total 22,0% 22,6% 19,2%
ANALYSIS OF INVOICED WATER SALES (in million m3) 2003 2004 2005 Domestic 198,2 199,2 205,7 Industrial - Commercial 20,5 21,0 19,6 Public Services - Municipalities 20,6 21,5 21,5 Water Supply to Municipal Networks 59,7 58,7 59,6 Others 5,2 5,2 5,2 Raw Water 6,4 6,6 6,5 TOTAL 310,6 312,2 318,1
PERCENTAGE BREAKDOWN OF INVOICED WATER SALES (%) 2003 2004 2005 Domestic 63,81 63,81 64,67 Industrial - Commercial 6,60 6,73 6,16 Public Services - Municipalities 6,63 6,89 6,76 Water Supply to Municipal Networks 19,22 18,80 18,74 Others 1,68 1,66 1,63 Raw Water 2,06 2,11 2,04 TOTAL 100,00 100,00 100,00
13 / 95 EYDAP S.A. Annual Bulletin 2005
FIGURE 1
ANALYSIS OF WATER INVOICED AVERAGE SHARE 2003-2005
Domestic 64%
Industrial - Commercial Raw Water 7% 2%Others Public Services - 1% Water Supply to Municipalities Municipal Networks 7% 19%
FIGURE 2
WATER CONSUMPTION INVOICED in millions cubic meters in millions € 228 320 230 219
212 318 315 210
194 185 312 310 190 180 311
305 307 170 306
301
300 150 2000 2001 2002 2003 2004 2005
Water Consumption Invoiced Water Supply Invoiced Revenues
14 / 95 EYDAP S.A. Annual Bulletin 2005
TABLE 2
ANALYSIS OF WATER SALES REVENUES OF WATER SALES PER CUSTOMER CATEGORY (in thousands €)
(in thousands €) 2003 2004 2005 Domestic 144.335,2 147.971,6 155.851,7 Industrial - Commercial 17.466,2 18.198,4 17.316,2 Public Services - Municipalities 18.936,0 19.913,6 20.484,0 Water Supply to Municipal Networks 25.369,0 26.585,0 27.576,2 Others 4.989,2 4.923,8 5.715,2 Raw Water 1.181,2 1.322,9 1.206,8 TOTAL 212.276,8 218.915,3 228.150,0
PERCENTAGE BREAKDOWN
% 2003 2004 2005 Domestic 67,99 67,59 68,31 Industrial - Commercial 8,23 8,31 7,59 Public Services - Municipalities 8,92 9,10 8,98 Water Supply to Municipal Networks 11,95 12,15 12,09 Others 2,35 2,25 2,51 Raw Water 0,56 0,60 0,53 TOTAL 100,00 100,00 100,00
AVERAGE PRICE PER CUSTOMER CATEGORY
(in €) 2003 2004 2005 Domestic 0,73 0,74 0,76 Industrial - Commercial 0,85 0,87 0,88 Public Services - Municipalities 0,92 0,93 0,95 Water Supply to Municipal Networks 0,42 0,45 0,46 Others 0,96 0,95 1,10 Raw Water 0,18 0,20 0,19 AVERAGE PRICE OF WATER / M3 0,68 0,70 0,72
TABLE 3
WATER CONSUMPTION PER CONSUMPTION SCALE (DOMESTIC CUSTOMERS)
Consumption Scale 2003 2004 2005 (m3 / trimester) 1 - 15 43,40% 44,07% 43,80% 16 - 60 46,31% 46,10% 46,95% 61 - 81 3,62% 3,53% 3,62% 82 - 105 1,65% 1,61% 1,60% > 105 5,02% 4,69% 4,02%
15 / 95 EYDAP S.A. Annual Bulletin 2005
FIGURE 3
ANALYSIS OF WATER CONSUMPTION PER CONSUMPTION SCALE AVERAGE RATE 2003-2005
1 - 15 m3 16 - 60 m3 43,8% 46,5%
61 - 81 m3 > 105 m3 82 - 105 m3 3,6% 4,6% 1,6%
TABLE 4
REVENUES FROM SEWERAGE USAGE
(in thousands €) 2003 2004 2005 Domestic 68.112 70.033 79.590 Industrial - Commercial 4.624 5.410 6.680 Public Services - Municipalities 2.847 3.383 6.527 Others 43 41 54 TOTAL 75.625 78.868 92.851
PERCENTAGE BREAKDOWN
% 2003 2004 2005 Domestic 90,07 88,80 85,72 Industrial - Commercial 6,11 6,86 7,19 Public Services - Municipalities 3,76 4,29 7,03 Others 0,06 0,05 0,06 TOTAL 100,00 100,00 100,00
16 / 95 EYDAP S.A. Annual Bulletin 2005
2. FINANCIAL RESULTS
In millions € 2005 2004 ǻ%
over 348,7 327,0 6,6% Other Operating Revenues 3,3 1,7 Operating Expenses (1) 285,4 266,8 7,0% % of Turnover 81,8% 81,6%
Gross Profits (2) 142,9 136,0 5,0% % of Turnover 41,0% 41,6%
EBITDA 66,6 61,9 7,6% % of Turnover 19,1% 18,9% Depreciation and Amortization 23,9 23,0
EBIT 42,8 39,0 9,8% % of Turnover 12,3% 11,9%
Pre- tax profits 37,0 33,7 9,8% % of Turnover 10,6% 10,3% Income tax -17,0 -28,7
Profit after tax 20,0 5,0 298,1% % of Turnover 5,7% 1,5%
Earnings per share(3) 0,19 0,05 280,0%
Proposed Dividend per share (3) 0,07 0,06 16,7% Notes: (1) Operational Expenses include all expenses except depreciation and amortization expenses and other non-operational expenses. (2) Gross Profits = Turnover + Other Operational Expenses – Cost of Sales (with Depreciation and Amortization Expenses). (3) Amount in €.
17 / 95 EYDAP S.A. Annual Bulletin 2005
3. TURNOVER (in thousands of €)
355.000 14.721 (2.667) 247 350.000 348.741
345.000
340.000 9.394
335.000
330.000 327.046
325.000
320.000
315.000
310.000 Turnover 2004 Revenues from Revenues from Revenues from Other revenues Turnover 2005 water supply sewerage services constructions services
4. OPERATING EXPENSES (in thousands of €)
300.000
+9.155 -2.532 290.000 285.401
280.000 +9.198
270.000 +2.782 266.799
260.000
250.000 Total Wages and Provisions Cost of Other Total operating Salaries disposals of expenses operating expenses dehydrat ed expenses 2004 sludge 2005
18 / 95 EYDAP S.A. Annual Bulletin 2005
5. BREAKDOWN OF OPERATIONAL EXPENSES
Wage and Salaries 2004 73,4%
Other Expenses 0,2% Third Parties Provisions Expenses and Fees Raw Materials and Cost of Dehydrated 1,8% 19,3% Consumables Used Sludge 4,3% 1,0%
Wage and Salaries 2005 69,5%
Third Parties Expenses and Fees 16,8% Other Expenses Raw Materials and Cost of Dehydrated Provisions 1,0% Consumables Used Sludge 4,9% 3,6% 4,1%
19 / 95 EYDAP S.A. Annual Bulletin 2005
6. EBITDA (amounts in thousands of €)
100.000
90.000 -13.599 +21.695 +1.619
80.000 -1.234 -3.679
70.000 66.646 61.934 60.000
50.000
40.000
30.000
20.000
10.000
0 EBITDA 2004 Turnover Other Cost of Selling Administrative EBITDA 2005 growth operating Services Expenses expenses income growth growth growth growth
7. PRE-TAX PROFITS (amounts in thousands of €)
50.000
45.000 +4.712 -882 -2.146 40.000 1.608 36.979
35.000 33.687
30.000
25.000
20.000
15.000
10.000
5.000
0 Pre-tax profit Ebitda Growth Change in Change in Net Change in Pre-tax profit 2004 Depreciation Interest Other 2005 expenses Income Expenses
20 / 95 EYDAP S.A. Annual Bulletin 2005
8. CASH FLOWS (amounts in thousands of €)
70.000
50.000 44.631
27.411 30.000
10.000 5.015 6.405 2004
-10.000 2005
-30.000 -34.916 -50.000 -45.261
-70.000 Cash Flows from Cash Flows from Cash Flows from Operating Activities Investing Activities Financing Activities
9. NET DEBT (amounts in thousands of €)
100.000
2.261 88.855 90.000 43.385
-27.411 78.750 80.000
70.000
60.000 -6.190 -1.940 50.000
40.000
30.000
20.000
10.000
0 Net Debt 2004 Cash Flow from Proceeds from Interest and Investments Dividends paid Net Debt 2005 Operating customers’ other Activities contributions and subsidies
21 / 95 EYDAP S.A. Annual Bulletin 2005
10. BALANCE SHEET ITEMS (amounts in thousands €)
ASSETS
1.072.390 Non current assets 1.056.431
187.895 Trade receivables 165.998 2005 2004 93.553 Other assets 88.868
17.676 Inventories 18.564
0 200.000 400.000 600.000 800.000 1.000.000 1.200.000
EQUITY AND LIABILITIES
755.238 Total Equity 741.486
Deferred subsidies and 208.270 customer contributions 210.301
Reserves for employee 160.702 benefits 154.400 2005 93.100 2004 Other current liabilities 87.806
70.628 Non current liabilities 72.963
Short term loans and 83.576 borrowings 62.904
0 200.000 400.000 600.000 800.000
22 / 95 EYDAP S.A. Annual Bulletin 2005
MANAGEMENT REPORT OF THE BOARD OF DIRECTORS
FOR THE ANNUAL GENERAL MEETING OF SHAREHOLDERS FOR THE YEAR ENDED AT 31 DECEMBER 2005
Dear Shareholders,
In setting EYDAP’s corporate aims, one must observe a delicate balance between the firm’s dynamic social and environmental role and its corporate action as a listed company in Athens Stock Market.
EYDAP, taking into consideration developments in the international and domestic markets, strives to apply a modern development strategy aiming at the empowerment of the Company and without disturbing the delicate balance mentioned above.
Given the drastic international developments in the corporate world, EYDAP’s responsibility to supply 40% of the Greek population with potable water, the natural growth of Athens in combination with the Olympic Games of 2004 as well as the firm’s obligation towards its shareholders, EYDAP is obliged to move forward, in order to fulfill projects of decisive importance and major financial gain.
EYDAP’s continued success depends on maintaining the company’s focus on customer satisfaction, sustainable water resource management and a constructive Company-Employees relationship based on a common goal - the growth of EYDAP.
The company’s strategic goals based on a five-year scope are:
x Maintaining and Augmenting Company Earnings
- In order for EYDAP to increase its earnings, it must achieve the following goals:
- The increase of the customer base primarily via the geographical expansion within or outside the borders of Attica
- Provision of new services to existing customers
23 / 95 EYDAP S.A. Annual Bulletin 2005 - The development of new activities and products in the areas of energy production (Hydro electrical and Thermo electrical works), natural gas promotion (affiliate firm EAP ATTIKIS), telecommunications, provision of consulting services, bottled water, and activities expansion abroad.
- Operating costs reduction
- Real estate development of EYDAP’s land properties
Upgrade of the existing water supply and sewage services
In order for EYDAP to improve its customer service, it plans projects and invests in the following sectors:
- Renovation and upgrade of the Water Treatment Plants’ operation
- Renovation and upgrade of the Wastewater Treatment Plants’ operation
- Technical and technological actions for a more effective operation of the wastewater and water supply networks.
x Environmental protection
EYDAP is obliged by the nature of its core business, to be sensitive about environmental issues. EYDAP’s environmental policy involves the adoption of effective methods for the disinfection and treatment of water, the implementation of cutting-edge technology so as to limit water losses, and the construction of new wastewater treatment plants and wastewater networks in areas of Attica like the Thriasio Pedio and Eastern Attica.
Corporate modernization
EYDAP ‘s goal is to adopt private sector management criteria, via company reorganization and the use of new information system technology. The firm’s main strategy is focused on a customer based approach, as well as the implementation of internal marketing techniques that promote effective communication and incentives to employees, given that the amelioration of EYDAP water supply and sewerage services depends greatly on the effective actions of its personnel.
EYDAP, having successfully faced the challenge of increased demand during the 2004 Olympic Games, is now preparing to successfully confront new challenges that will further strengthen the
24 / 95 EYDAP S.A. Annual Bulletin 2005 company by reinforcing its core businesses and expanding its activities in areas that promote growth.
Given EYDAP’s constant goal for modernization and effective operational performance for the benefit of our clients and shareholders, the firm’s management has set priorities that primarily involve the compatibility of company performance with the principles of Corporate Governance and the optimization of EYDAP’s financial future via the modification of the Concession Contract (signed 9/12/1999) between EYDAP and the Greek Government. Moreover, EYDAP is striving to collect all outstanding debt, especially long term debt owed by the Greek State and local municipalities. All the above, combined with effective financial management will ensure EYDAP’s position as a leader and innovator in the field of water. In addition to the above, EYDAP will be in a position to prove its dynamic potential and its flexibility, by entering new business areas and promoting new products and managing them to the benefit of the company and its shareholders.
Water Consumption
During 2005, total water consumption decreased by 2,3% compared to the rise of 1,3% in 2004. During the 5-year period 2001 – 2005 the average annual increase was 0,4%. Water Consumption invoiced rose by 1,9% (+0,5% in 2004). During the last five years the average yearly increase was 1%. The increase of invoiced consumption in combination with the total decrease resulted in the reduction of the unaccounted for water, as percentage in the total consumption at 19,2%, from 22,6% in 2004.
Regarding the basic categories of consumers, an increase of 3,3% (+2,8 in 2002) has been observed in the largest category the one of Domestic customers, while the second largest the one of Bulk Water Supply to Municipal Networks has an increase of 1,5%. A –6,7%% decline has been observed in 2005, in Industrial – Commercial customers.
The increase in water invoiced by 5,9 million m3 was the combined result of the increases in the categories of Domestic customers (+6,5 million m3), Bulk Water Supply to Municipal Networks (+0,9 million m3), together with a decrease in the categories of Industrial customers (-1,4 million m3) and Raw Water consumption (-0,1 million m3)..
The percentage breakdown of consumption during 2005 presented no significant changes. Domestic customers held 64,7% of total consumption (3-years average 64%) while the Bulk Water Supply to Municipal Networks
25 / 95 EYDAP S.A. Annual Bulletin 2005 held 18,7% (3-years average 19%), the Public Services-Municipalities held 6,8% (3-years average 7%), and Industrial–Commercial customers held 6,2% (3-years average 7%).
Total water invoiced consumption increased by 4,2%, during 2005, leading to revenues of 228,2M€. The 5-year average annual rise was 5,4 %.
In basic categories of customers Domestic consumers presented an increase of +5,3%, Industry- Commercial a decrease of –4,8%, Public Services – Municipalities an increase of +2,9%, and the category of Municipal Network Support an increase of 3,7%. Significant decrease – albeit with a small contribution to the overall result – presented the category of Raw Water consumption (+8,8% against a +12% in 2004). The biggest increase in a five-year period was noticed in the category of Bulk Water Supply to Municipal Networks (average annual increase 16,2%) and the smaller the categories of Industry-Commercial and Public Services – Municipalities (average annual increase 1,9%). Domestic consumers have an average annual increase of 4,8% for a five-year period.
The greatest increase was in the category of Bulk Water Supply to Municipal Networks, which exhibited an increase of +41,1% and the smallest increase in the category of third parties (+4,1 %). The lowest price (excluding raw water) continues to be regarding the category of Bulk Water Supply to Municipal Networks, with an average price of 0,42 €/m3, which corresponds to 58% of the average price for domestic clients. The category of third parties has the highest price, with an average price of 0,96 €/m3, which corresponds to 131% of the average price for domestic clients.
The average price of water sold for 2005 was 0,72 € as opposed to 0,70 € in 2004, representing an increase of 2,3%. Domestic consumers presented an increase of +2%, Bulk Water Supply to Municipal Networks of 2,2%, Public Services – Municipalities of 2,9% and Industry-Commercial of 1,9%. The lowest price (excluding raw water) continues to be regarding the category of Bulk Water Supply to Municipal Networks, with an average price of 0,46 €/m3, which corresponds to 61% of the average price for domestic clients. The category of third parties has the highest price, with an average price of 1,10 €/m3, which corresponds to 145% of the average price for domestic clients.
However, the category of Bulk Water Supply to Municipal Networks, despite the large price increase in 2003, continues to generate disproportional revenues in relation with the amount of water it consumes, which is consumed by their citizens (domestic customers) outside the area of Company’s water-supply responsibility. The category of Bulk Water Supply to Municipal Networks
26 / 95 EYDAP S.A. Annual Bulletin 2005 consumes 19% of the water invoiced and represents only 12% of sales revenue with low receivables turnover.
Financial results
During 2005, company’s turnover increased by 6,6% (+€21,7m) reaching €349m compared to €327m in 2004. This increase was mainly the result of increases in both sewerage services revenues by €14,7m (+18%) and water supply and related services revenues by €9,4m (+4,%). These increases came up from both the increase of water invoiced consumption (+1,9%) and of water supply and sewerage tariffs increases effective from December 2004, while the last increase of tariffs took place in April 2003.
The increases of water supply tariffs on December 2004 were equal to 3% for every level of consumption, while the sewerage tariff was formed to the 60% of water invoice from 56% prior effective for domestic customers, from 28% prior effective for Public Services – Municipalities, and from 39,2 prior effective for Industry-Commercial users.
The time of adjustment of water supply and sewerage tariffs has as a consequence the increases to pass partially on the revenues of 2004 resulting in significant increases for the revenues of 2005. The significant adjustment in sewerage tariffs of domestic customers but mainly in other categories of customers lead to significant increases of revenues from sewer usage right, reaching €93m from €79m in 2004, presenting an increase of 17,7%.
Cost of services increased by €14,8m (+7,7%) reaching €205,8m from €191m in 2004. This increase is mainly due to the increase by €9,3m in expenditures for the transportation and disposal of dehydrated sludge from Psytallia Wastewater Treatment Plant and in additional provisions of the amount of €9,2m. Additional provisions had this increase due to the fact of the additional formation of provisions of €6,9m for civil law pending litigations.
All these factors lead to the increase of the gross profit by only 5% or €6,9m. Gross profit margin reached the 41% of turnover from 41,6% in 2004.
General and administration expenses and Distribution and selling expenses increased by €3,5m and €1,2m respectively, which in a percentage basis were below the increase of turnover (+4,9 and
27 / 95 EYDAP S.A. Annual Bulletin 2005 +4,2% respectively). The increase of General and administration expenses is attributable to the increase of Wages and Salaries by €3,4m.
EBITDA increased by 11,8% or €6,6m, reaching €62,8m, while EBITDA margin was 18% from 17,2% in 2004. EBIT reached €39m from €33,5m in 2004 and the EBIT margin was equal to 11,2% from 10,2% in 2004.
Financial revenues decreased by €0.2m, while financial expenses increased by €2m (+83%). These trends in net financial result are the outcome of increased debt, which at the end of 2005 reached €101m from €92m in 2004.
All these factors, mentioned before, lead to the increase of profits before tax by €3,3m (+9,8%), to €37m from €33,7m in 2004. Income tax of 2005 was €17m, decreased by €11,7m from 2004 mainly due to smaller non-deductible tax provisions. The effective tax rate reached 46% against a 85,1% in 2004 and the profits after tax reached €20m from €5m in 2004.
The Board of Directors of EYDAP will propose to the Annual General Meeting of Shareholders, which has been scheduled for the second part of June 2006 the distribution of a cash dividend of €0,07 per share. The proposed dividend is increased by 16,7% to the one of 2004 and on the basis of the closing price of 29/3/2006 (€7,68 per share) the dividend yield is equal to 0,91%.
Galatsi, March 30, 2006 The Members of the Board
K.Kostoulas , Chairman Executive Member
A.Vartholomeos , Chief Executive Officer Executive Member
Th.Georgakelos , Member E.Baltas , Member A.Manouris , Member G.Zafiropoulos , Member A.Spiropoulos , Member N.Sigalas , Member A.Giannouli , Member G.Mastraggelopoulos , Member A.Protonotarios , Member K.Galanis , Member E.Moutafis , Member
28 / 95 EYDAP S.A. Annual Bulletin 2005
AUDITORS' REPORT
To the Shareholder’s of the Athens Water Supply and Sewerage SA (E.YD.A.P. S.A.)
We have audited the accompanying financial statements of E.YD.A.P S.A., as of and for the year ended December 31,2005. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit
We conducted our audit in accordance with the Greek Auditing Standards, which are based on the International Standards on Auditing. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, evaluating the overall financial statement presentation as well as assessing the consistency of the Board of Directors’ report with the aforementioned financial statements. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the aforementioned financial statements give a true and fair view of the financial position of the Company as of December 31, 2005 and of the results of its operations and their cash flows and changes in shareholders’ equity for the year then ended in accordance with the International Financial Reporting Standards that have been adopted by the European Union and the Board of Directors’ Report is consistent with the aforementioned financial statements.
Without qualifying our report, we draw your attention to the following:
1. The Company according to its establishment Law 2744/99, signed a Contract with the Greek State whereby the State committed to granting E.YD.A.P. S.A. either from European Union’s financial resources or from the State’s Programme of Public Investments amounts to cover 60% of the capital expenditure that E.YD.A.P. S.A. will spend for the maintenance, renovation, improvement and or the expansion of the water supply and sewerage system for the eight year period from 2000 to 2008. Against the above mentioned Investment Programme, amounting to approximately Euro 1,22 billion, which includes maintenance expenses, the Company as of 31.12.2005 has made expenses for capital expenditure amounting to Euro 327 million approximately for which it should receive a subsidy amounting to Euro 196 million approximately (ie 327 * 60%) while in accordance with the aforementioned contract it is also due a subsidy for maintenance expenses. The Company against the subsidy to which it is entitled to, has received as of 31.12.2005 the amount of Euro 9 million approximately. In accordance with the principle of conservatism, the above receivable of the Company from the Greek State amounting to Euro 187 million approximately (196 million – 9 million) has not been accounted for as a receivable and as a long term liability, from which it would be gradually transferred to the income statement in accordance with the depreciation rate of the subsidised water supply and sewerage system. If the aforementioned accounting entries had been included, then the current year’s financial results as well as the previous year’s results for the period would have been improved (profit) by Euro 5,00 million approximately and Shareholders Equity increased by Euro 21 million approximately.
2. As already mentioned in our above matter of emphasis number 1, the amount of approximately Euro 187 million does not include the receivable arising from the subsidisation of maintenance expenses, because from the total expenses relating to operations and maintenance amounting to Euro 369 million approximately, it was not possible to isolate the amount related to maintenance expenses. Even though in the contract signed by the Company and the Greek State (Appendix 4 – Financial commitments under the title “Subsidies for capital expenditure
29 / 95 EYDAP S.A. Annual Bulletin 2005 guaranteed by the State”) it is mentioned that the State guarantees the granting to E.YD.AP S.A. a subsidy amount 60% of the capital expenditure incurred by the Company relating to maintenance, renovation, improvement or expansion of the water supply and sewerage system for any year from 2000 to 2008, as of the date of completion of our audit, the amount due by the State relating to the subsidy for maintenance expenses had not been agreed upon between the Company and the State.
3. As of the date of the issue of this audit report, the legal transfer of the ownership of the assets to the Company “Fixed Assets E.YD.A.P S.A.”, amounting to Euro 657 million approximately, had not been completed.
4. As further explained in the note 33 to the financial statements, certain accounts of the interim financial statements concerning the first quarter, semester and nine month period of 2005 as well as of 2004, have been restated due to the change in the accounting principle followed relating to “Employee Benefits”.
Athens, March 30, 2006
The Certified Public Accountants
Michael Hadjipavlou Epaminondas Giouroukos
I.C.P.A Reg. No. 12511 I.C.P.A Reg. No. 10351
Hadjipavlou Sofianos & Cambanis S.A.. Charted Accountants & Consultants Kiffissias Av. 250-254 15231 Chaladri Athens, I.C.P.A Reg. No: Ǽ120
30 / 95 EYDAP S.A. Annual Bulletin 2005
FINANCIAL STATEMENTS
ACCORDING TO THE INTERNATIONAL FINANCIAL AND REPORTING STANDARDS ADOPTED BY THE EUROPEAN UNION FOR THE YEAR ENDED AT 31 DECEMBER 2005
The Financial Statements, page 33 to 36, were approved by the Board of Directors on 30 March 2005 and are under the approval of the Annual Shareholders Meeting. Under the permission of the Board of Directors the following officers named below sign the Financial Statements:
Athens 30 March 2006,
The Chairman of the The Chief Executive Officer The Chief Financial Officer The Chief Accounting Officer Board of Directors
Kostoulas Konstantinos Vartholomeos Antonios Kakou Evagelia Leventi Maria
31 / 95 EYDAP S.A. Annual Bulletin 2005
1. GENERAL INFORMATION FOR THE COMPANY
Name: EYDAP SA Domiciliation: Oropou 156 – Galatsi Date of Establishment: 25/10/1999 Duration: 100 years Main Activity: Water Supply - Sewerage Registration Number of S.A.: 44724/06/B/99/52 Prefecture: Athens Tax Number: 094079101 Members of the Board of Directors: K.Kostoulas, A.Vartholomeos, Th.Georgakelos, E.Baltas, A.Manouris, G.Zafiropoulos, A.Spiropoulos, N.Sigalas, A.Giannouli, G.Mastraggelopoulos, A.Protonotarios, K.Galanis, E.Moutafis Ending Day of the Period: 31 December 2005 Period: 12 months Form of Financial Statements: Annual Date of Approval of Financial Statements: 30 March 2006 Chartered Public Accountants: M. Hatzipavlou and E. Giouroukos Auditing Company: Deloitte Hatzipavlou, Sofianos & Kampanis Public Accountants and Business Consultants SA Type of Auditor’s Report Unqualified opinion – Emphasis of matter Internet address where the Financial Statements www.eydap.gr are registered:
All amounts in Financial Statements and Notes are in euro thousands unless otherwise stated
32 / 95 EYDAP S.A. Annual Bulletin 2005
2. STATEMENTS OF INCOME FOR THE YEARS ENDED AT 31 DECEMBER 2005 & 2004
31.12.2005 31.12.2004 Amounts in thousands of Euro Notes
Revenue from services rendered 9 348.741 327.046 Cost of Services 10 (205.839) (190.997)
Gross Profit 142.902 136.049 Other Operating Income 9 3.306 1.687 General and administration expenses 10 (74.475) (71.008) Distribution and selling expenses 10 (28.941) (27.766)
Profit from operating activities 42.792 38.962
Other operating expenses (3.858) (5.466) Finance income net 9 2.319 2.531 Finance costs net 14 (4.274) (2.340)
Profit from ordinary activities before income taxes 36.979 33.687
Income tax expense 15 (16.995) (28.667)
Net profit for the year 19.984 5.020
Earnings per share (in €) 16 0,19 0.05
Proposed Dividend (in €) 16 0,07 0.06
The accompanying notes on pages 53-88 form an integral part of these annual income statements
33 / 95 EYDAP S.A. Annual Bulletin 2005
3. BALANCE SHEETS FOR THE YEARS ENDED AT 31 DECEMBER 2005 & 2004 Notes 31.12.2005 31.12.2004 ASSETS Amounts in thousands of Euro Non-current assets Goodwill 17 1.676 1.676 Other Intangible assets 18 1.949 1.094 Property, plant and equipment, net 19 978.314 967.861 Investment in associates 20 144 200 Available-for-sale Investments 21 644 486 Long-term receivables 22 98.468 94.899 Deferred tax assets 23 46.452 40.752 Total non-current assets 1.127.647 1.106.968
Current assets Materials and spare parts, net 24 17.676 18.564 Trade receivables, net 25 187.895 165.998 Other receivables, net 26 26.075 25.009 Cash and cash equivalents 27 12.221 13.321 Total Current assets 243.867 222.892
Total Assets 1.371.514 1.329.860
Equity Share Capital 29 63.900 63.900 Share Premium 40.502 40.502 Reserves 30 373.117 371.591 Retained Earnings 31 277.719 265.493 Total Equity 755.238 741.486
Liabilities
Non-current liabilities Long term loans and borrowings 32 17.500 29.167 Reserve for employees benefits 33 160.702 154.400 Deferred tax liabilities 23 2.147 2.311 Provisions 34 36.947 28.248 Deferred subsidies and customer contributions 35 208.270 210.301
Consumers' guarantees 36 14.034 13.237 Total non-current liabilities 439.600 437.664
Current Liabilities Operating Current Liabilities 37 51.332 55.694 Current tax liabilities 9.788 8.035 Short term loans and borrowings 32 83.576 62.904 Other current liabilities 37 31.980 24.077
Total Current Liabilities 176.676 150.710
Liabilities and Shareholder’s Equity 1.371.514 1.329.860
The accompanying notes on pages 53-88 form an integral part of these balance sheets
34 / 95 EYDAP S.A. Annual Bulletin 2005
4. STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY FOR THE YEARS ENDED AT 31 DECEMBER 2005 & 2004
2004 Share Share Legal Other Revaluation Retained Total Capital Premium reserve non- Surplus Earnings Equity taxable reserves Equity Balance 63.900 40.502 12.487 358.283 155.133 120.038 750.343 at the beginning of the year Profit / (Losses) 936 4.084 5.020 of the year, after tax Dividends (13.845) (13.845) Net Profit from revaluation of available-for-sale investments Others (115) (32) 115 (32)
Equity Balance 63.900 40.502 13.308 358.283 155.101 110.392 741.486 at the end of the year
2005 Share Share Legal Other Revaluation Retained Total Capital Premium reserve non- Surplus Earnings Equity taxable reserves Equity Balance 63.900 40.502 13.308 358.283 155.101 110.392 741.486 at the beginning of the year Profit / (Losses) 1.526 18.458 19.984 of the year, after tax Dividends (6.390) (6.390) Net Profit from 158 158 revaluation of available-for-sale investments Others 0
Equity Balance 63.900 40.502 14.834 358.283 155.101 122.460 755.238 at the end of the year
The accompanying notes on pages 53-88 form an integral part of these Statements of Changes in Shareholders’ Equity
35 / 95 EYDAP S.A. Annual Bulletin 2005
5. CASH FLOW STATEMENTS FOR THE YEARS ENDED AT 31 DECEMBER 2005 & 2004
1.01-31.12-2005 1.01-31.12-2004 Cash Flows from operating activities Amounts in thousands of Euro Profit before tax 36.979 33.687 Adjustments for: Provisions 13.981 4.782 Customers’ Write-offs 0 (4.559) Depreciation and amortization 32.075 31.151 Amortization of customers’ contributions and subsidies (8.221) (8.179) Investment income (21) (20) Impairment of investments 56 115 Interest and related income (2.297) (2.512) Interest and related expense 4.274 2.340 Operating income before working capital changes / changes in operating assets and liabilities (Decrease in) Increase in Trade receivables (27.003) (23.395) Other receivables (7.904) (5.987) Long-term receivables (3.569) (8.016) Materials and spare parts 713 63 Increase in (Decrease in) Operating Current Liabilities (2.361) 1.830 Other current liabilities 7.904 1.303 Consumers' guarantees 797 788 Reserve for employees benefits 6.302 7.325 Minus: Interest and related expenses paid (3.187) (1.880) Income Tax paid (21.107) (23.821) Net cash from operating activities (a) 27.411 5.015
Cash Flows from investing activities Dividends received 21 20 Interest and related income received 2.256 2.425 Purchases of property, plant, and equipment (41.761) (54.464) Purchases of intangible assets (1.624) (587) Proceeds from customers’ contributions and subsidies 6.190 7.415 Investments in associates 0 (70) Net cash from investing activities (b) (34.916) (45.261)
Cash Flows from financing activities Proceeds from borrowings 75.500 129.500 Repayments of borrowings (66.832) (80.500) Dividends paid (2.261) (4.369) Net cash from investing activities (c) 6.405 44.631
Net (decrease) increase in cash and cash equivalents (a) + (b) + (c) -1.100 4.386 Cash and cash equivalents, beginning of period 13.321 8.935 Cash and cash equivalents, end of period 12.221 13.321
The accompanying notes on pages 53-88 form an integral part of these cash flows
36 / 95 EYDAP S.A. Annual Bulletin 2005
6. ESTABLISHMENT, OPERATIONS AND LEGAL FRAMEWORK OF THE COMPANY
‘’Athens Water and Sewerage Company’’ (‘’EYDAP’’ or ‘’Company) was established in 1980 following the merge of the two water and sewerage utilities of Athens at that time, namely Hellenic Water Company and the Sewerage Organization of Athens. The Company’s Headquarters are located at 156 Oropou Street, Galatsi 111 46, Athens.
The Company is involved in the water and sewerage services in the Attica region, which comprises the broader area of Athens. In accordance with its Articles of Incorporation, EYDAP is responsible fro the survey, construction, establishment, operation, exploitation, maintenance, expansion and renewal of water supply and sewerage installation and networks, within its area of responsibility.
EYDAP provides its water supply services through its 7.900 kilometers water distribution network. The Company also operates four Water Treatment Plants (WTP) with a total daily capacity of 1,8 million cubic water meters.
The sewerage network has a total length of owner 5.800 kilometers and consists of the main and secondary sewerage collector mains. EYDAP operates among others, a major Waste Water Treatment Plant (WWTP) in Psytallia Island with a current daily capacity of 1 million cubic waste meters of waste.
The Company operates a biogas combined thermoelectric power production plant of 7,14 Mwe at the Psytallia WWTP and two Small Hydroelectric Plants along the Mornos Aqueduct (at the Kirfi and Elikonas locations).
The Company operates under the supreme inspection of the Ministry of Environment, Physical Planning and Public Works and in accordance with the provisions of Corporate Law 2190/1920 as amended by Law 2744/1999.
Until the enactment of L 2744/1999 the Company operated as wholly state-owned utility. On 1999 the Hellenic Republic decided to partially privatize the Company through an Initially Public Offering in Athens Stock Exchange. In this respect L 2744/1999 was enacted, the main provisions of which have as follows:
x The legal duration of EYDAP was set to 100 years commencing from the date the L 2744/1999 was published in the Government Gazette, which was the 25 October 1999. The period can be expanded by a special resolution of the General Assembly.
x The Greek State is not permitted to hold less than the 51% of the Company’s share capital, at any time.
37 / 95 EYDAP S.A. Annual Bulletin 2005
6. ESTABLISHMENT, OPERATIONS AND LEGAL FRAMEWORK OF THE COMPANY (continued)
x EYDAP has the exclusive right of providing water supply and sewerage services in the Attica region for the 20 years commencing from the date L 2744/1999 was published in the Government Gazette. This exclusive right is not transferable and may be renewed following a written agreement between the Greek State and the Company. x For the period 2000 through 2005 the tariffs of water and sewerage services are defined through common decisions of the Ministers of Environment and Public Works and Finance and National Economy, after considering the Company’s Board of Directors opinion. x Under article 4 an independent public entity ‘’EYDAP Fixed Assets’’ (‘’the Public Entity’’ or ‘’PE’’) was established with the purpose of carrying out the operation and maintenance of the dams and reservoirs which where transferred to it, at no consideration. The provisions of L 2744/1999 are as follows: - On October 1999 the dams and the reservoirs at Marathons lake and Mornos river which are the main infrastructure installations used for watering Attica region in view of the Company’s privatization were transferred to the Public Entity, with a equal decrease in the Special Tax Free Reserve of Equity. -The Greek State through the Public Entity is obliged to provide adequate quantities of crude water (without treatment) to the Company to carry out its watering activities. - The Public Entity has the responsibility for the proper function and the maintenance of the dams and reservoirs, which were transferred to it. However, as allowed in the contract, the maintenance has been assigned and is carried out by EYDAP. Until 2004, the annual cost of the maintenance and the proper functioning of these installations will be offset against the crude water, which the Public Entity provides the company. There is no agreement on a new contract after the period where the aforementioned provision was in place.
x According to the L 2939/2001, EYDAP continues to have - and after the enforcement date of L 2744/1999 - the authority to construct projects related with the water supply system of the broader area of Athens that were selected for refinancing from the European Cohesion Fund at that time and until their completion. EYDAP has the right to receive the investment grants from the ECF, in retrospect, for the amounts received or will be received after the enforcement day of L 2744/99. x The Company has cyclicality in its revenues (increased water consumption in the summer months), which produce significant variances from quarter to quarter to reported turnover and income. For these reasons, results of operations for interim periods are not necessarily indicative of results for the full year. Results of operations from interim periods are indicative only if they are compared with the corresponding results of the previous periods. For this reason the interim income is not indicative for the trend of the annual income but only with the corresponding interim income.
38 / 95 EYDAP S.A. Annual Bulletin 2005
7. SIGNIFICANT ACCOUNTING POLICIES
The financial statements have been prepared in accordance with International Financial Reporting Standards.
The financial statements have been prepared on the historical cost basis, except for the revaluation of certain properties and financial instruments. The principal accounting policies adopted are set out below.
First Time Adoption of IFRS
EYDAP prepares financial statements for the first time in accordance with the IFRS and more specifically with the IAS 34 combined with the IFRS 1 which have been adopted by the European Union for the period beginning from the 1 January 2005 with transition date the 1st January of 2004, according with the IFRS 1: First Time Adoption of IFRS.
The preparation of the opening balance sheet at the transition date and the financial statements of the comparable year 31-12-2004 and the year of first time adoption 31-12-2005 have done with the IFRS effective at the time of the date of first time adoption (31-12-2005).
The Company applied IFRS-1 at the preparation of the first financial statements, using the following exemptions:
(i) The Company used the fair values of property, determined by independent appraisals, as deemed cost for the preparation of the financial statements.
(ii) The estimates at the time of the transition were consistent with the estimates of the Greek Accounting Standards after the adjustments made for the presentation of changes in the accounting policies, unless there was evidence that these estimates were false.
39 / 95 EYDAP S.A. Annual Bulletin 2005
7. SIGNIFICANT ACCOUNTING POLICIES (continued)
Investments in associates
An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The results and assets and liabilities of associates are incorporated in these financial statements using the equity method of accounting, except when the investment is classified as held for sale, in which case it is accounted for under IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. Under the equity method, investments in associates are carried in the consolidated balance sheet at cost as adjusted for post-acquisition changes in the Group’s share of the net assets of the associate, less any impairment in the value of individual investments. Losses of an associate in excess of the Group’s interest in that associate (which includes any long-term interests that, in substance, form part of the Group’s net investment in the associate) are not recognised.
Goodwill
Goodwill represents the future economic benefits arising from assets that are not uniquely specified or separately identified.
Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less any accumulated impairment losses.
For the purpose of impairment testing, goodwill is allocated to each of the company cash-generating units. Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognised for goodwill is not reversed in a subsequent period.
40 / 95 EYDAP S.A. Annual Bulletin 2005
7. SIGNIFICANT ACCOUNTING POLICIES (continued)
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts and sales related taxes.
Sales of goods are recognised when goods are delivered and title has passed.
Revenue from construction contracts is recognised in accordance with the Group’s accounting policy on construction contracts (see below).
Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount.
Dividend income from investments is recognised when the shareholders’ rights to receive payment have been established.
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date, as measured by the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs, except where this would not be representative of the stage of completion. Variations in contract work, claims and incentive payments are included to the extent that they have been agreed with the customer.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred that it is probable will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred.
When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.
41 / 95 EYDAP S.A. Annual Bulletin 2005
7. SIGNIFICANT ACCOUNTING POLICIES (continued)
Leasing
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
The Group as lessor
Amounts due from lessees under finance leases are recorded as receivables at the amount of the Company’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the Company’s net investment outstanding in respect of the leases.
Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight-line basis over the lease term.
The Group as lessee
Assets held under finance leases are recognised as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability.
Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the term of the relevant lease. Benefits received and receivable as an incentive to enter into an operating lease are also spread on a straight-line basis over the lease term.
42 / 95 EYDAP S.A. Annual Bulletin 2005
7. SIGNIFICANT ACCOUNTING POLICIES (continued)
Foreign currencies
The financial statements of the Company are presented in the currency of the primary economic environment in which the entity operates (its functional currency), which is the Euro.
In preparing the financial statements of the Company, transactions in currencies other than the entity’s functional currency (foreign currencies) are recorded at the rates of exchange prevailing on the dates of the transactions.
Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are included in profit or loss for the period.
Borrowing costs
Borrowing costs are recognised in profit or loss in the period in which they are incurred.
Government grants
EYDAP SA obtains subsidies from the European Union (E.U.) in order to fund specific projects executed through a specific time period. Furthermore EYDAP’s customers are required to participate in the initial network connection cost (metering devices, distribution network, connections, etc) or in the upgrade/expansion of the Company’s networks. Subsidies and customers’ contributions are deferred and amortized into income, over the period necessary to match them with the related costs that they are intended to compensate, in the accompanying balance sheets. Amortization is included in depreciation and amortization in the accompanying statements of operations.
Government grants for the training of personnel are recognized in profit or loss in the periods required for the matching with the related expenses and they are presented as a deduction from them.
43 / 95 EYDAP S.A. Annual Bulletin 2005
7. SIGNIFICANT ACCOUNTING POLICIES (continued)
Retirement benefit costs
Payments to defined contribution retirement benefit plans are charged as an expense as they fall due. Payments made to state-managed retirement benefit schemes are dealt with as payments to defined contribution plans where the Company’s obligations under the plans are equivalent to those arising in a defined contribution retirement benefit plan.
For defined benefit retirement benefit plans, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses that exceed 10 per cent of the greater of the present value of the Company’s defined benefit obligation and the fair value of plan assets are amortised over the expected average remaining working lives of the participating employees. Past service cost is recognised immediately to the extent that the benefits are already vested, and otherwise is amortised on a straight-line basis over the average period until the benefits become vested.
The retirement benefit obligation recognised in the balance sheet represents the present value of the defined benefit obligation as adjusted for unrecognised actuarial gains and losses and unrecognised past service cost, and as reduced by the fair value of plan assets.
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.
44 / 95 EYDAP S.A. Annual Bulletin 2005
7. SIGNIFICANT ACCOUNTING POLICIES (continued)
Taxation (continued)
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset realised. Deferred tax is charged or credited to profit or loss, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.
Property, plant and equipment
Tangible assets held for use in the production or supply of goods or services, or for administrative purposes, are stated in the balance sheet at their revalued amounts, being the fair value at the date of revaluation, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation is charged so as to write off the cost or valuation of assets, other than land and properties under construction, over their estimated useful lives, using the straight-line method.
45 / 95 EYDAP S.A. Annual Bulletin 2005
7. SIGNIFICANT ACCOUNTING POLICIES (continued)
Property, plant and equipment (continued)
Properties in the course of construction for production, rental or administrative purposes, or for purposes not yet determined, are carried at cost, less any recognised impairment loss. Cost includes professional fees and, for qualifying assets, borrowing costs capitalised in accordance with the Company’s accounting policy. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use.
The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.
Intangibles assets: Intangibles assets are related with acquisition costs of computer software that will probable generate future economic benefits and any expenditure realized during the development of the software to bring it in operational use. Software is amortized based on the straight-line method over their estimated useful life, which is set to three years. Maintenance of computer software programs is recognized as an expense as incurred. Expenditures related with the betterment or prolong the performance of computer software programs are capitalized under the requirement that these expenditures can be measured reliably.
Impairment of tangible and intangible assets excluding goodwill
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.
At each balance sheet date, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
46 / 95 EYDAP S.A. Annual Bulletin 2005
7. SIGNIFICANT ACCOUNTING POLICIES (continued)
Impairment of tangible and intangible assets excluding goodwill (continued)
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
Inventories Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Cost is calculated using the weighted average method. Net realisable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
Financial instruments
Financial assets and financial liabilities are recognised on the Company’s balance sheet when the Company becomes a party to the contractual provisions of the instrument.
Trade receivables
Trade receivables are measured at initial recognition at fair value, and are subsequently measured at amortised cost using the effective interest rate method. Appropriate allowances for estimated irrecoverable amounts are recognised in profit or loss when there is objective evidence that the asset is impaired. The allowance recognised is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the effective interest rate computed at initial recognition.
47 / 95 EYDAP S.A. Annual Bulletin 2005
7. SIGNIFICANT ACCOUNTING POLICIES (continued)
Investments
Investments are recognised and derecognised on a trade date basis where the purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, plus directly attributable transaction costs.
An impairment loss is recognised in profit or loss when there is objective evidence that the asset is impaired, and is measured as the difference between the investment’s carrying amount and the present value of estimated future cash flows discounted at the effective interest rate computed at initial recognition. Impairment losses are reversed in subsequent periods when an increase in the investment’s recoverable amount can be related objectively to an event occurring after the impairment was recognised, subject to the restriction that the carrying amount of the investment at the date the impairment is reversed shall not exceed what the amortised cost would have been had the impairment not been recognised.
Investments other than held-to-maturity debt securities are classified as either investments held for trading or as available-for-sale, and are measured at subsequent reporting dates at fair value. For available-for-sale investments, gains and losses arising from changes in fair value are recognised directly in equity, until the security is disposed of or is determined to be impaired, at which time the cumulative gain or loss previously recognised in equity is included in the profit or loss for the period. Impairment losses recognised in profit or loss for equity investments classified as available-for-sale are not subsequently reversed through profit or loss.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.
Financial liabilities and equity
Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities.
48 / 95 EYDAP S.A. Annual Bulletin 2005
7. SIGNIFICANT ACCOUNTING POLICIES (continued)
Bank borrowings
Interest-bearing bank loans and overdrafts are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method. Any difference between the proceeds (net of transaction costs) and the settlement or redemption of borrowings is recognised over the term of the borrowings in accordance with the Group’s accounting policy for borrowing costs (see above).
Trade payables
Trade payables are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method.
Provisions
Provisions are recognised when the Group has a present obligation as a result of past event, and it is probable that the Group will be required to settle that obligation. Provisions are measured at the directors’ best estimate of the expenditure required to settle the obligation at the balance sheet date, and are discounted to present value where the effect is material.
New standards, interpretations and amendments to published standards
Certain new standards, interpretations and amendments to existing standards have been published that are mandatory for the accounting periods beginning on or after 1 January 2006, as follows:
o IAS 19 (Amendment), Employee Benefits (effective from 1 January 2006)
o IAS 39 (Amendment), Cash Flow Hedge Accounting of Forecast Intra-group Transactions (effective from 1 January 2006)
o IAS 39 (Amendment), The Fair Value Option (effective from 1 January 2006)
o IAS 39 and IFRS 4 (Amendment), Financial Guarantee Contracts (effective from 1 January 2006)
o IFRS 1 (Amendment), First-time Adoption of International Financial Reporting Standards and IFRS 6 (Amendment), Exploration for and Evaluation of Mineral Resources (effective from 1 January 2006)
o IFRS 7, Financial Instruments: Disclosures, and a complementary Amendment to IAS 1, Presentation of Financial Statements - Capital Disclosures (effective from 1 January 2007)
49 / 95 EYDAP S.A. Annual Bulletin 2005
7. SIGNIFICANT ACCOUNTING POLICIES (continued)
New standards, interpretations and amendments to published standards (continued)
o IFRIC 4, Determining whether an Arrangement contains a Lease (effective from 1 January 2006)
o IFRIC 5, Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds (effective from 1 January 2006)
Management anticipates that the adoption of these Standards and Interpretations in future periods will have no material impact on the financial statements of the Company.
8. Critical accounting judgements and key sources of estimation uncertainty a) Critical judgements in applying the entity’s accounting policies
In the process of applying the entity’s accounting policies, which are described in note 7, management has made the following judgements that have the most significant effect on the amounts recognised in the financial statements (apart from those involving estimations, which are dealt with below).
Investment program
The Company according to its establishment Law 2744/99, has signed a contract with the Greek State, according to which the Greek State undertakes the commitment for the subsidization of EYDAP either from the Community Funds or from the Program of Public Investments for the coverage of the 60% of the capital expenditure, which EYDAP pays for the maintenance, restoration, improvement or the expansion of the water supply and sewerage network system for the 8years period 2000-2008. Against the aforementioned investment program of around €1,22 billion, that includes, as already mentioned, also the maintenances, the Company has spent for capital expenditures as at 31 December 2005 an amount of € 326,58 millions, for which it has the right to receive a subsidy of around €195,95 millions (326,58*60%), while for the maintenance expenditures the Company claims the corresponding subsidy. The Company against the subsidy that has the right to receive has received as at 30 December 2005 an amount of €9,08 millions. On the basis of the above the claim of the Company from the Greek State is raised to at least €186,87 millions (195,95-9,08). Therefore this amount has not recorded in the accounts receivables with an equal debit of the long-term liabilities accounts, the carrying amount of which is gradually transferred in the profit/loss of the period in proportion to the depreciation rate of the subsidized water supply and sewerage network system. If the aforementioned journals were carried out then the profit/loss of the current and the previous year period will be improved by around €5,00 millions and the net equity will be improved by around €20,50 millions.
50 / 95 EYDAP S.A. Annual Bulletin 2005
8. Critical accounting judgements and key sources of estimation uncertainty (continued) a) Critical judgements in applying the entity’s accounting policies (continued)
Investment program (continued)
In addition to these claims the Company has a claim for a subsidy for the maintenance expenditures according to the contract with the Greek State. However it is not feasible to extract the amount that corresponds to maintenance only from the amount of expenditures that are related with the operation and maintenance of installations that amounts to €368,51 millions. The corresponding subsidy that amounts to €221,10 millions it must be finalized after an arrangement with the Greek State.
Public Entity EYDAP Fixed Assets (PE)
The Public Entity was established at the time of the IPO with the purpose of the ownership’s transfer of the water dams and basins of Marathon, Mornos, Yliki and Evinos from EYDAP to PE. Besides the constructions and upgrades of the installations that are related with these water dams and basins, the Greek State – through the Public Entity - has undertaken the obligation to supply the Company with raw water to meet its water supply obligations. The price of the raw water for the 5years 2000-2004 is being offset with the cost of services that EYDAP realizes for the maintenance and operation of the fixed assets that belong by ownership to the Public Entity. b) Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below.
Litigations and claims Lawsuits for civil law cases with claims of an amount of €38 millions have been raised against the Company as at 31 December 2005. These lawsuits are mainly related with damages caused by floods (either because of broken mains of from rainfalls) or they are lawsuits of various trade creditors and subcontractors for violation of contractual terms. There are also pending litigations with employees of around €20,2 millions. Against all these potential losses, when the pending litigation will be finalized, EYDAP has formed a provision of €36,9 millions as at 31 December 2005 and of € 28,2 millions as at 31 December 2004, which are considered as sufficient.
51 / 95 EYDAP S.A. Annual Bulletin 2005
8. Critical accounting judgements and key sources of estimation uncertainty (continued)
b) Key sources of estimation uncertainty. (continued)
Insurance coverage The Company’s property, plant and equipment are dispersed in many locations, mainly at the Attica region, and therefore risk of a major loss is reduced. The Company does not carry any form of insurance coverage on its assets.
Unaudited by tax authorities fiscal years The tax authorities had not audited the Company, until the fiscal period ended as at 31 December 2004. The accompanying financial statements include a related provision for the additional taxes and fees that are probable to be levied at the finalization of the tax year 2005.
Financial instruments Fair value The effective interest rate applied for mature trade receivables of municipalities dating from 2001 and converted with interest-free arrangements in monthly instalments (10 to 60), was 6%, which represents the rate that discounts the nominal amount of these receivables at the current price of rendered services on a cash basis.
Credit risk: Management estimates that there are no significant risks from the concentration of credit balances (except from these for which bad debt allowance has formed) due to the followings: x In relation to the credit balances from residential and industry customers, there exists large diversity of the customer base. x In relation with the rest of credit balances, these amounts represent, mainly, receivables from the primary and the broader public sector, as at the balance sheet date.
52 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (all amounts in euro thousands unless otherwise stated)
9. REVENUES Sales of the Company are analyzed as follows:
Year ended at 31 December of 2005 2004 Revenues from water supply and related services 246.818 237.424 Revenues from sewerage services 96.400 81.679 Revenues from constructions for third parties 4.549 7.216 Revenues from electric power sales 917 436 Sales of stock 57 291 Total Turnover 348.741 327.046
Other operating revenues 3.306 1.687 Financial revenues 2.319 2.531
Total Revenues 354.366 331.264 Total revenues represents the revenues as defined by IAS 18.
10. ALLOCATION OF EXPENSES
10.1 Expenses accounts have been allocated to cost of services and Administrative and Selling operations as follows:
Year ended at 31 December of 2005 2005 Cost of Services Selling Administrative Total Expenses Expenses
Wages and Salaries 111.447 22.585 64.456 198.488 Third-party allowances 16.418 3.931 2.585 22.934 Third-party expenses and fees 21.510 405 3.158 25.073 Depreciation and amortization 20.999 622 2.233 23.854 Provisions 13.980 0 0 13.980 Cost of disposals of dehydrated 11.816 0 0 11.816 sludge Other expenses 3.318 1.266 1.404 5.989 Construction costs 2.465 2.465 Raw material and consumables used 9.426 132 639 10.197 Allocation of expenses (5.540) 0 0 (5.540) to self-constructed assets
205.839 28.941 74.475 309.255
53 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (all amounts in euro thousands unless otherwise stated)
10. ALLOCATION OF EXPENSES (continued)
Year ended at 31 December of 2004 2004 Cost of Selling Administrative Total Services Expenses Expenses
Wages and Salaries 112.236 22.378 61.092 195.706 Third-party allowances 17.334 3.809 2.844 23.987 Third-party expenses and fees 25.312 69 2.241 27.622 Depreciation and amortization 19.756 681 2.535 22.972 Provisions 4.782 0 0 4.782 Cost of disposals of dehydrated 2.661 0 0 2.661 sludge Other expenses 3.514 682 1.788 5.984 Construction costs 2.556 2.556 Raw material and consumables used 10.746 147 508 11.401 Allocation of expenses (7.900) 0 0 (7.900) to self-constructed assets
190.997 27.766 71.008 289.771
10.2 Construction costs: They are related with the construction costs of the anti-flooding construction works and technical watering installations that are constructed by EYDAP on behalf of the Ministry of Environment and the Public Entity which are analyzed as follows:
Year ended at 31/12/2005 Year ended at 31/12/2004 Public Entity Ministry of Public Ministry of Environment Entity Environment Payroll costs 51 659 195 794
Raw material and consumables used 0 1 11 30 Sub-constructions 736 872 1216 2.501 Other expenditures 1.560 7 739 37 Utilities 0 61 182 392 Allocation of overhead expenses 118 226 213 496 2.465 1.826 2.556 4.250
9.1 Allocation of overhead costs to cost of constructions: According to the existing legislation:
x For self-constructed and self-used installations EYDAP has the right to capitalize to the costs of them, a percentage of overhead costs equal to the 5% of the direct cost of construction.
x For construction costs related with third parties (Ministry of Environment, Public Entity, Customers) EYDAP has the right to capitalize a percentage of overhead costs equal to the 15% of the direct cost of construction. In both cases the direct cost of construction is constituted primarily by payroll costs, consumption of materials and sub-constructions.
54 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
11. DEPRECIATION AND AMORTIZATION EXPENSES Depreciation is calculated on a straight-line basis over the average estimated economic useful life, as follows:
I. WATER SUPPLY NETWORKS 1. Aqueducts 2,5% 2. Primary Water Supply Mains 3,0% 3. Secondary Water Supply Mains 3,5% 4. Distribution networks, Pumping Stations 10% 5. Regulating/Storage tanks – Water Treatment Plants 2,0%
II. SEWERAGE NETWORKS AND RELATED INFRASTRUCTURE 1. Heavy infrastructure and primary collectors mains 2,0% 2. Secondary collector mains 2,5% 3. Tertiary Wastewater Sewerage System 4,0% 4. Electromechanical installations 10%
III. WASTE WATER TREATMENT PLANTS AND R&D CENTERS 1. Sanitary Engineering Research & Development Centers 5% 2. Waste Water Treatment Plants 5%
Furniture and fittings 20% puter hardware 30% Motor vehicles 15% Mechanical equipment 15%-20% Buildings 2,5%-10%
The amounts are analyzed as follows:
Year ended at 31 December of 2005 2004 Depreciation of tangible assets 31.307 30.537 Amortization of software 768 614 Amortization of customers’ contributions and subsidies for fixed assets (8.221) (8.179) 23.854 22.972
55 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
12. STAFF COSTS
Year ended at 31 December of 2005 2004 Wages and Salaries 146.906 145.699 Social Security Costs 32.312 32.020 Provisions for staff leaving indemnities 3.461 3.705 Provisions for staff leaving indemnity (special account) 373 0 Provisions for post-employment medical care 15.436 14.282
Total (Note 10) 198.488 195.706
The total number of employees as at 31 December 2005 and 2004 were 4.043 and 4.240 respectively.
13. FINANCIAL REVENUES
Year ended at
31 December of
2005 2004
Interest from customers 2.068 2.326
Dividends 21 20
Other revenues 230 185
2.319 2.531
14. FINANCIAL EXPENSES
The financial expenses of amounts €4.274 and €2.340 at 31 December 2005 and 2004, respectively, are related with the interests of loans of the Company.
56 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
15. INCOME TAX
Year ended at 31 December of 2005 2004 Current Tax 21.916 19.624 Deferred Tax (Note 23) (5.864) 8.571
Tax of unaudited by tax authorities fiscal years 943 472 16.995 28.667
The current tax was calculated with 32% according to the existing Tax law of the period’s taxable profit. The corresponding tax of 2004 has been calculated with the official tax rate of 35%.
The current tax was calculated as follows: Year ended at 31 December of 2005 2004 Income tax over current’s year taxable profits 20.749 19.624 Tax differences due to previous years tax audits 1.167 0
21.916 19.624
The tax for the current period was calculated as follows:
Year ended at 31 December of 2005 2004
Profit before tax 36.979 33.687
Income tax calculated with the current tax rate (32% and 35% respectively) 11.833 11.790 Tax differences due to previous years tax audits 1.167 0 Tax over non-deductible tax expenses 3.052 16.405 Tax of unaudited by tax authorities fiscal years 943 472
16.995 28.667
57 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
16. EARNINGS PER SHARE
The basic earnings per share are calculated by dividing the net profit of the period attributable to ordinary shareholders with the weighted average number of ordinary shares in issue during the period. Profits are defined as profits/losses from continuing operations that corresponds to the entity. It must be noted that at the current year there are no discontinued operations. There are no convertible bonds or other potentially delusive convertibles securities during the periods reported in the accompanying financial statements, so there is no calculation for diluted earnings per share.
Year ended at 31 December of 2005 2004 Earnings attributable to ordinary shareholders 19.984 5.020 Weighted Average of ordinary shares in issue 106.500 106.500 Basic Earnings per Share 0,19 0,05
Proposed dividend The Board of Directors decided to propose to the General Shareholders Meeting the distribution of dividend of 7 cents (€0,07) per share for the year 2005. The dividend will be approved by the Annual Shareholders Meeting and is included in the account Retained Earnings.
17. GOODWILL
The amount of goodwill of € 1.676 as at 31 December 2005 is related with the excess in the acquisition cost over the undepreciated replacement cost of Elefsina and Aspropyprgos water supply networks as it was estimated at the time of concession. The cash generating units and consequently the goodwill of the water supply networks are tested for impairment either annually or more frequently if the events of the changes of conditions indicate possible impairment. The impairment test performed at the end of 2004 by Division of Corporate Analysis and Planning showed that the value of the goodwill was not impaired.
More specifically: The Company during the 2nd quarter of 2003 signed a concession contract with two municipalities (Aspropyrgos and Elefsina) for the transfer of ownership of their water supply networks. According to the terms of these contracts, water supply networks of 300 km were transferred to EYDAP. These networks serve, through 22.320 connections, 54.000 inhabitants of these municipalities, which are added to the customer base of the Company.
58 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
17. GOODWILL (continued)
The concession of the water supply network of Aspropyrgos cost € 2.749 and has been arranged with the offset of equal debt to the Company. The appraisal of Aspropyrgos water supply network in replacement cost was performed by the technical services of the Company and conformed to the corresponding estimations of the technical services of the Municipality of Aspropyrgos and amounts to € 2.192.
The acquisition of Elefsina water supply network cost € 1.800 and arranged with the offset of € 1.500 debt of Elefsina to EYDAP and the payment of € 300. The appraisal of this network in replacement cost was performed by the technical services of the Company and conformed with the corresponding appraisal of the technical services of Elefsina Municipality and amounts to € 681.
18. OTHER INTANGIBLES ASSETS
COST At 1 January 2004 3.624 Additions 587 At 31 December 2004 4.211 Additions 1.623 At 31 December 2005 5.834
AMORTIZATIONS At 1 January 2004 -2.503 Charge for the period -614 At 31 December 2004 -3.117 Charge for the period -768 At 31 December 2005 -3855
CARRYING AMOUNT At 31 December 2004 1.094 At 31 December 2005 1.949
Other intangibles assets are related with the expenditure for software purchases associated with future economic benefits for the company, which are recorded as intangible assets and amortized over a three years period.
59 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
19. TANGIBLE ASSETS
The Company under the provisions of IFRS 1 ‘’First Time Adoption of IFRS’’ used the voluntarily exemption in relation with the presentation and valuation of property as at the balance sheet date, at the transition to the IFRS, 1 January 2004. The company considers the adjusted values of property as deemed cost for the preparation of the transition balance sheet, at the 1 January 2004. More specifically for the transition to the IFRS the company valuate the property at fair values using the estimates of an independent appraiser. These fair values formed the deemed cost at the date of the preparation of the balance sheet.
ȀĮIJȦIJȑȡȦ ʌĮȡĮIJȓșİIJĮȚ Ƞ ʌȓȞĮțĮȢ μİIJĮȕȠȜȫȞ ʌĮȖȓȦȞ IJȦȞ ȤȡȒıİȦȞ 2005 țĮȚ 2004
Machinery & Land & Water Supply Sewerage Motor Vehicles Constructions-in- Mechanical Total Buildings Network Networks & Furnitures progress Equipment
Carrying Amount at 1 January 2005 250.389 5.421 298.280 278.443 8.247 127.081 967.861
Additions 9.031 460 39.014 13.127 2.123 38.239 101.994 Disposals (2) (4) (60.228) (60.234) Depreciation charge of the (880) (1.874) (15.182) (9.397) (3.974) (31.307) period Carrying amount 31 December 2005 258.540 4.007 322.110 282.173 6.392 105.092 978.314
1/1/2005: Cost 253.477 12.332 350.390 324.308 33.141 127.081 1.100.729 Accumulated Depreciation (3.088) (6.911) (52.110) (45.865) (24.894) - (132.868) Carrying Amount 250.389 5.421 298.280 278.443 8.247 127.081 967.861
31/12/2005 Cost 262.507 12.786 389.401 337.435 35.015 105.092 1.142.236 Accumulated Depreciation (3.967) (8.779) (67.291) (55.262) (28.623) (163.922) Carrying Amount 258.540 4.007 322.110 282.173 6.392 105.092 978.314
60 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
19. TANGIBLE ASSETS (continued)
Machinery & Land & Water Supply Sewerage Motor Vehicles Constructions-in- Mechanical Total Buildings Network Networks & Furnitures progress Equipment
Carrying Amount at 1 January 2004 248.226 5.580 269.821 277.076 10.936 132.272 943.911
Additions 2.886 1.531 41.768 10.544 3.017 49.464 109.210 Disposals (1) (52) (15) (54.655) (54.723) Depreciation charge of the (723) (1.689) (13.257) (9.177) (5.691) - (30.537) period Carrying amount 31 December 2004 250.389 5.421 298.280 278.443 8.247 127.081 967.861
1/1/2004: Cost 250.590 10.802 308.680 313.764 30.257 132.272 1.046.365 Accumulated Depreciation (2.364) (5.222) (38.859) (36.688) (19.321) - (102.454) Carrying Amount 248.226 5.580 269.821 277.076 10.936 132.272 943.911
31/12/2005 Cost 253.477 12.332 350.390 324.308 33.141 127.081 1.100.729 Accumulated Depreciation (3.088) (6.911) (52.110) (45.865) (24.894) - (132.868) Carrying Amount 250.389 5.421 298.280 278.443 8.247 127.081 967.861
20. INVESTMENTS IN ASSOCIATES
Investments in associates of €144 include:
a) Participation of the Company at the "Gas Company of the Suburbs S.A." (E.A.P.). On February 2003 the joint-venture of EYDAP S.A., ELLINIKI TECHNODOMIKI-TEV S.A. and AKTOR S.A. was awarded, in an international tender offer by EPA Attikis, the project of the promotion of natural gas connections for domestic and small professional customers in the north-eastern part of Attica, as well as a part of the Athens Municipality. For this reason the "Gas Company of the Suburbs S.A." was established and EYDAP participates with a share of 35%.
As at the 31 December 2005 the acquisition cost of E.A.P. was €315 and the impairment losses at €171.
b) Participation of the Company at Alternatives Telecommunication Networks S.A. (ETIDI) with a share of 25%. ETIDI was established on August 2001 and is under liquidation. The acquisition cost has been totally impaired.
61 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
20. INVESTMENTS IN ASSOCIATES (continued)
Because there is participation only in an associate enterprise, and the Company has no obligation to prepare consolidated financial statements - because has no participation in a subsidiary - the financial statements under IFRS are them where the associate is accounted with the equity method. In this case the preparation of individual financial statements, where information about the impact of the method of cost or fair value on the accounts of the balance sheet and the income statement, is in abeyance.
The information provided is that the accounts of the balance sheet and the statement of income will not be materially differentiated if individual financial statements were prepared, as far as the there is no significant difference between the acquisition cost of the equity of the associate. It must be noted that the acquisition cost (with the impairments included) is not different by the equity of the associate as at the balance sheet date.
21. INVESTMENTS AVAILABLE-FOR-SALE
31 December 2005 31 December 2004 Fair Value (EYATH) 644 486
644 486
Investments included in the Table above represents the participation of EYDAP in EYATH, a company enlisted in the Athens Stock Exchange, which provides the ability to the company to gain revenues from dividends and capital gains. The fair value of the share is based on the corresponding quoted market price.
22. LONG-TERM RECEIVABLES
The account is analysed in the accompanying financial statements as follows:
31 December 31 December 2005 2004 Long Term Receivables from Municipalities 6.342 6.780 Staff Loans (Note 26) 2.196 2.754 Construction contracts 89.663 85.114 Guarantees (Public Power Corp., Real Estate) 267 251
98.468 94.899
62 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
22. LONG-TERM RECEIVABLES (continued)
Long-term receivables from Municipalities EYDAP supply with water (distilled or raw) various Municipalities, which operate their own water supply networks and charge their citizens. During the past years the Company faced serious delays in the payments of related trade receivables from Municipalities. During the year 2001 (beginning from February of 2001), EYDAP went on the settlement of contracts with 28 Municipalities, according with which the carrying amounts during the signing of the contract are arranged with monthly interest-free payments of equal amounts, the number of which are 10 to 60 installments. Furthermore trade receivables with additional 13 Municipalities were settled. These long-term receivables are presented in the financial statements in their unamortized cost.
Construction contracts
The account in the accompanying financial statements is analyzed as follows:
31 December 31 December 2005 2004
Ministry of Environment, Physical Planning and Public 49.104 47.168 Works Paid Subsidies /Advances (1.022) (1.022) 48.082 46.146
Public Entity EYDAP fixed Assets 95.591 92.978 Paid Subsidies /Advances (54.010) (54.010) 41.581 38.968
89.663 85.114
The Company has undertaken the execution of a construction program concerning anti-flooding infrastructure works for the Ministry of Environment and the upgrading/improvement of the technical watering installations which were transferred to the Public entity in 1999.
63 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
22. LONG-TERM RECEIVABLES (continued)
Construction contracts (continued)
According to the existing legal framework the Company constructs anti-flooding projects on behalf of the Ministry of Environment, Physical Planning and Public Works and projects relating with the upgrade/improvement of the damns and the reservoirs that have been transferred to the Public Entity. These projects have been granted to be subsidized by the EU or/and the Greek State and after their completion they will be transferred to their owners. The paid subsidies from the European Union or the Greek State are subtracted from the unbilled revenues because the Greek State has the obligation to pay the difference upon their transfer. Besides that the Company has the right to receive a reasonable fee for the construction of these projects, which has been legally determined to a 6% percent on the construction cost as this is presented in the accounting books and certified by the Chartered Accountants. It must be noted that no contracts are signing for the construction of these projects (the terms are governed by the existing legal framework) and also during the construction period no interim certificates and thus no interim billings are issued. For the purpose of preparation of financial statements according to the IFRSs (revenue recognition from construction works) the IAS 11: Construction Works was applied according to which the reasonable fee that is related with the part of the projects that was constructed during the years 2005 and 2004 respectively is charged to revenues.
64 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
23. DEFERRED TAXATION Below are the main assets and liabilities from deferred taxation recorded by the Company and their movements at the years ending at 1.1-31.12.2005 and 31.12.2004. Deferred Assets 2004 2005
Charge to profit/loss Credit to Credit to Opening of the period due to Ending Total profit/loss of the profit/loss of the Balance adjustment of the tax Balance period period rate
Expensing of 1.812 (522) (233) 1.057 (528) 529 intangible assets Slow moving 469 40 (134) 375 38 413 Inventory
Employee 18.649 1.831 (5.328) 15.152 1.575 16.727 Benefits liabilities
Provisions for Bad 3.760 1.343 (1.074) 4.029 (581) 3.448 Debt
Other Provisions 5.861 418 (1.675) 4.604 2.175 6.779
Customer 17.684 685 (5.052) 13.317 680 13.997 Contributions
Other Deferred 2.117 274 (173) 2.218 2.341 4.559 tax assets
50.352 4.069 (13.669) 40.752 5.700 46.452 Deferred Liabilities 2004 2005
Charge to profit/loss Credit to Opening Credit to profit/loss of the period due to Ending Total profit/loss of the Balance of the period adjustment of the Balance period tax rate
Accrual revenues 3.340 (575) (454) 2.311 (164) 2.147 3.340 (575) (454) 2.311 (164) 2.147
Final amount of deferred taxation as at the 31 December of 2005 44.305 The charge for deferred income taxes (deferred tax liability) in the accompanying income statements include the temporary tax differences arising from recorded revenues-profits that will be taxed in future time. The credit for deferred taxes (deferred tax assets) includes mainly temporary tax differences arising from specific provisions that are tax deductible at the time of the realization of the corresponding expenditure.
65 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
24. MATERIALS AND SPARE PARTS
The account in the accompanying financial statements is analysed as follows:
31 December 31 December 2005 2004 Consumables and spare parts 16.651 16.937 Network extensions-in-progress 1.025 1.627 17.676 18.564
25. TRADE RECEIVABLES
The account in the accompanying financial statements is analysed as follows:
31 December 31 December 2005 2004 Domestic customers and users 53.351 53.166 Municipalities and Greek State 115.527 92.210 Industrial Customers 4.307 5.449 Sewerage Customers, exclusively 5.474 2.437 178.659 153.262 Accrual revenues 32.524 30.917 211.183 184.179 Less: Bad debt allowances (23.288) (18.181) 187.895 165.998
The majority of domestic customers are priced every three months according to the indications of the water meters. Non-priced revenues arising from the supply of water and sewerage services from domestic customers, for the time between the last measuring and the pricing day and at the time of the preparation of the financial statements are recorded as accrual revenues.
The movement of the provisions for bad debt that have formed for the estimated non-recoverable amounts from the water supply and sewerage services is analysed as follows:
31 December 31 December 2005 2004 Opening Balance 18.181 19.788 Provisions of the period 5.107 2.952 Write-offs 0 (4.559) Ending Balance 23.288 18.181
Provisions has been estimated on the basis of defaults of the past years and the statistical data over the collectability of these accounts.
66 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
25. TRADE RECEIVABLES (continued)
The Company calculates surcharges over the mature debts with a rate of 1% per month (plus a 3,6% stamp-duty), which is equal to the rate of surcharges to mature debts to the Greek State, as specified by the Ministry of Economy.
26. OTHER RECEIVABLES
The account is analysed as follows
31 December 31 December 2005 2004
Loans and advances to personnel 6.197 6.181
Advances to subcontractors and suppliers 3.764 3.751
Advances for purchase of inventories 1.480 1.153
Other advances 2.413 2.416
Receivable based on the participation of the Greek State for the 8.350 6.879 coverage of Employees’ end-of-service indemnity
Other receivables 3.871 4.629
26.075 25.009
Loans and advances to personnel: The Company provides both interest-bearing and interest- free loans to the personnel as well as interest-free short-term payroll advances and long-term loans with interest rates equal to the current rate of the Company’s overdraft bank accounts. The long-term portion of the loans to personnel as at 31 December 2005 and 31 December 2004 is amounted to €2.196 and €2.754 respectively and is included in the long-term receivables (Note 22).
Participation of the Greek State for the coverage of Employees’ end-of-service indemnity: This amount is related with the obligation of the Greek State according to the provisions of Law 2939/01 to participate in the coverage of the deficit of the account of special indemnity for the personnel employed before the 25 October 1999 and retires afterwards. This amount is related with indemnities already paid by the Company, which are claimed from the Greek State.
67 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
26. OTHER RECEIVABLES (continued)
The movement of the part of indemnities that corresponds to the Greek State has as follows:
1.1.2005- 1.1.2004- 31.12.2005 31.12.2004 Accumulated surplus/(deficit) opening balance 6.879 0 Payments to employees 10.789 9.268 Employees’ retentions (2.439) (2.389) Receipts from the Greek State (6.879) 0 Accumulated surplus / (deficit) claimed from the Greek State closing balance 8.350 6.879
27. CASH AND CASH EQUIVALENTS The account is analysed as follows:
31 December 31 December 2005 2004
Cash at hand 562 225
Sight deposits 11.659 13.096
12.221 13.321
The sight deposits accounts are in Euros and have floating interest rates varying in relation to the amount of the deposit. The current account of these sight deposits approximate their accounting value due to the fact of their floating interest rates and short maturities. Sight deposits accounts include undeposited checks of trade creditors and other creditors, the amounts of which as at the 31 December 2005 and 2004 were €5.429 and €8.661 respectively.
Interest earned from bank deposits are recognized on an accrual basis and are included in financial revenues.
28. CREDIT RISK
The main financial assets of the Company carried on the balance sheet, include bank accounts, cash and cash equivalents, trade receivables, other receivables and investments.
The credit risk is mainly focused on trade receivables. Provision for impairment loss is formed when there is a recognizable event of loss, which based on past experience, is evidence of decrease in the recoverability of cash flows. The Company has no significant concentration of credit risk because of the large diversity of the customer base.
68 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
29. SHARE CAPITAL
EYDAP was established in 1980 pursuant to Law 1068/1980 and following the merge of the two water and sewerage utilities of Athens at that time, namely Hellenic Water Company and the Sewerage Organization of Athens.
The initial share capital of the Company was set to € 130.503 and was determined based on the valuation of assets and liabilities of the merged entities according to the provisions of the Law 1068/1980.
Within 1992 the share capital was increased to € 1.253.507 consisting of 213.566.232 ordinary shares of € 5,86 each (two thousands drachmas). The increase incurred pursuant to Law 1914/1990 following a new valuation of the Company’s net equity in view of major infrastructure installations, which were contributed in kind by the Greek State at that time, capitalization of liabilities towards the State, etc.
The Shareholders General Meeting on 30 June 1998 decided the increase of the Company’s share capital by € 6.845 through the capitalization of investment subsidies that had been collected up to 31 December 1997. After the increase the Company’s share capital amounted to € 1.260.352 consisting of 214.732.544 ordinary shares of €5,86 each (two thousands drachmas).
In 1999, in view of the Company’s listing in the Athens Stock Exchange and according to Law 2744/1999, THE Company’s share capital was set at €58.694 consisting of 100.000.000 ordinary shares of €0,58 (two hundred drachmas) each. According to the same Law the remaining amount of share capital was converted to a ‘’Special Non Taxable Reserve’’, which, was among others decreased by the net amount of the fixed assets, which were conceded to the Public Entity at no consideration.
On December 1999, 6.500.000 new ordinary shares were issued of €0,58 each and were covered through the Initial Public Offering process.
As a result the Company’s share capital as of December 31,2000 consisted of 106.500.000 ordinary shares of €0,58 par value each (two hundred drachmas).
69 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
29. SHARE CAPITAL (continued)
On May 2001 EYDAP decided to denominate its shares in Euro, through the increase of its nominal value from €0,58 to €0,60 par value. The resulting amount of this increase was €1.391 and it was transferred from the Share Premium account reserve. Thus, the share capital of the Company at 31 December 2005 and 31 December 2004 was equal to €63.900 consisting of 106.500.000 ordinary shares of €0,60 par value.
30. RESERVES
The account in the accompanying financial statements is as follows: 31 31 December December 2005 2004
Legal reserve 14.834 13.308
Special Non-taxable reserve of Law 2744/99 352.065 352.065
Reserve from non-taxable revenues 2.518 2.518
Reserve from special taxed revenues 3.687 3.687
Other reserves 13 13
373.117 371.591
Legal reserve: According to the Greek corporate law corporations are required to transfer a minimum of five percent of their annual net profit as reflected in their statutory books to a legal reserve, until such reserve equals one-third of the paid –in share capital. The reserve cannot be distributed and its reason of existence is the coverage of potential future losses.
Special Non-Taxable Reserve of The Law 2744/1999: This Special Non-taxable Reserve was formed at the time of the Initial Public Offering in the Athens Stock Exchange in 1999, from the formation of the existing share capital to an equal amount of €58.694, and its opening balance was €1.201.658. According to the provisions of Law 2744/1999, the opening balance of this reserve had the following movements: ¾ It decreased with the amount of the net book value of the fixed assets that were conceded to the Public entity at no consideration. ¾ It decreased with the amount of various provisions accounts that were recorded at the time of the IPO. ¾ It increased with the revaluation surplus from the revaluation of the technical installations and networks that were remained at the ownership of the Company. ¾ It increased with the amount of the Profit/Loss carry-forward account that was present on the Balance Sheet as at 31 December 1998.
70 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
30. RESERVES (continued)
According to the Law 2744/1999, during the time of its creation this reserve was defined as a Special Non-taxable reserve and it was not subject to any taxation.
Reserves from non-taxable of taxed with a special treatment revenues: They are related with income from interest that are either non-taxable or have been taxed with a 15% withholding tax. If they are distributed then they are taxed according to the general provisions of the income taxation. At the present time the Company has no intention to distribute these reserves and according to IAS 12 no deferred taxation has been calculated.
31. Retained earnings
The account in the accompanying financial statements is analyzedas follows:
Balance at 01.01.2004 275.171 Dividends paid (13.845) Profit for the year 2004 4.084 Others 83
Balance at 01.01.2005 265.493
Dividends paid (6.390) Profit for the year 2005 18.458 Others 158
Balance at 31.12.2005 277.719
71 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
32. BORROWINGS The account on the accompanying financial statements is analyzed as follows:
31 31 December December 2005 2004
Bank Loans 97.934 88.929
Greek State Loans 3.142 3.142 101.076 92.071
The borrowings are repayable as follows:
On demand or within on year 83.576 62.904 In the second year 11.667 11.667 Between the third and the fifth year 5.833 17.500 After five years 101.076 92.071
Less: Amount due for settlement within 12 months (shown under 83.576 62.904 current liabilities)
Amount due to settlement after 12 months 17.500 29.167
The Company’s bank borrowings are denominated in Euro and consequently are not subject to foreign currency risk. Bank borrowings are subject to floating interest rates and consequently the Company is subject to the risk of future cash flows but not on the risk of the fair value of the debt. The Company does not utilize derivative financial instruments in order to reduce its risk exposure, as at the balance sheet date, because management is of the opinion that there are no significant risks from interest rates changes.
All loans are stated in Euros (€). The fair values of the loans approximate their existing carrying amounts due to floating exchange rates.
The Company has the following loan contracts:
a) Interest-bearing loan with a closing balance of € 29.167 at 31 December 2005 and € 35.310 at 31 December 2004 with a repayment period of 5 years and a 2 years exception period for the repayment of the interest. The interest rate of the loan is estimated on the basis of 6m Euribor, plus 0.825% and it will be repaid in 6 equal amount installments in the period November 2005 to May 2008. The starting date of the loan contract is the 24 May 2003.
72 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
32. BORROWINGS (continued)
b) Bank overdraft account with a credit line of € 40.000 and closing balance at 31 December 2005 of €13.054. The interest rate of the loan is estimated on the basis of the 1m Euribor, plus a spread of 0,60%. The initial loan contract was signed on December 2004 with an expansion option.
c) Bank overdraft account with a credit line of €40.000 with a closing balance at 31 December 2005 and 31 December 2004 of € 25.415 and € 19.000 respectively. The interest rate of the loan is estimated on the basis of overnight Euribor plus a spread of 0,60%. The loan contract was signed on October 2004 with an expansion option.
d) Bank overdraft account with a credit line of €40.000 and a closing balance at 31 December 2005 and 31 December 2004 of €30.298 and €34.541 respectively. The interest rate of the loan is estimated on the basis of 1m Euribor, plus a spread of 0,60%. The loan contract was signed on December 2004 with an expansion option.
e) Bank overdraft account with a credit line of €0 and a closing balance at 31 December 2005 and 31 December 2004 of zero and € 78 respectively. The interest rate of the loan is estimated on the basis of 1m Euribor, plus a spread of 0,75%. The initial loan contract was signed on August 2002.
Greek State: This closing balance is related with the syndicated loan of 1925 for the construction of the Marathon Dam. The remaining balance of the syndicated loan was repaid by the Greek State on behalf of the Company based of a related Ministerial Decision and thus the obligation has been converted to a short-term liability towards the Greek State. This short-term liability is interest-free.
The Company has not undertaken any hedging activity for the offset of the cash flow interest rate risk embedded in the floating interest rates as this risk was considered negligible (the risk from the variations of future cash flows of a financial instrument due to the changes of the market interest rates).
73 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
33. RESERVES FOR EMPLOYEES BENEFITS
The account in the accompanying financial statements is analyzed as follows:
31 December 31 December 2005 2004
Employees’ end-of-service indemnities 26.562 26.777
Employees healthcare scheme 133.767 127.623
Special Employees’ end-of-service indemnity 373 0
160.702 154.400
The Company operates a medical and healthcare plan, which covers its employees, pensioners and their families and it has also a Staff Retirement Indemnities, which consists of a lump sum payment made to its employees upon dismissal or retirement.
The principal actuarial assumptions used for the purpose of actuarial valuations (staff retirement indemnities and employees healthcare scheme) were as follows:
2005 2004 Inflation 3% in 2006 with gradual 3,2% in 2005 μİ with gradual decrease to 2% from 2010 decrease to 2% from 2010 and and afterwards afterwards Discount Rate 4% 4,23% Expected return on plan assets 4% 4,23% Morbidity rates 1% 1% Expected increase of payroll 1,5% annually plus inflation 1,5% annually plus inflation cost Expected increase in healthcare cost 3,6% in 2006 with gradual 3,8% in 2005 with gradual decrease to 2,4% from 2010 decrease to 2,4% from 2010 and afterwards and afterwards
a. Special account of Employees’ end-of-service indemnity (for employees hired until 25.10.1999) According to the Special Collective Bargaining Agreements of 2.4.1990, 2.7.1991 and 25.5.1992 besides the indemnity of the Law 2112/20 a special indemnity is paid from the special account reserve that is formed from the staff contributions and the interest on these. According to the Law 2939/2001 the Greek State undertakes the obligation to cover the current deficit of the special indemnity account at the end of each year, for the staff at service on 25 October 1999 that retired of will be retired.
74 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated) 33. RESERVES FOR EMPLOYEES BENEFITS (continued)
b. Provision of Employees’ end-of-service indemnity The liabilities for Employees’ end-of-service indemnity were calculated through a actuarial study for the period 1.1-31.12.05 and 1.1-31.12.04 according to the aforementioned assumptions.
The movements of the provision for Employees’ end-of-service indemnity during the years ended at 31 December 2005 and 2004were as follows:
31.12.2005 31.12.2004 Opening Balance 26.777 26.090 Cost of Service 1.634 1.547 Interest Cost 1.364 1.492 Actuarial Losses 463 303 Benefits Paid (3.676) (2.655) Closing Balance 26.562 26.777 Provision for employees’ end-of-period indemnity that is recognized in the period profit/loss
1.1.2005- 1.1.2004- 31.12.2005 31.12.2004 Current Service Cost 1.634 1.547 Interest Cost 1.364 1.492 Actuarial Loss (recognized) 463 303 3.461 3.342
c. Employees Healthcare Scheme
The Company covers the expenses of healthcare for the employees, the pensioners and their family members on specific internal regulations issued on this respect. The scheme is partly funded through payroll contributions and withholdings. The related liabilities of the Company arising from the healthcare scheme are calculated according to an actuarial study for year ended at 31 December 2005
The movement of the provision for the healthcare scheme during the years ended at 31 December 2005 and 2004 were as follows:
75 / 95 EYDAP S.A. Annual Bulletin 2005 NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
33. RESERVES FOR EMPLOYEES BENEFITS (continued)
c. Employees Healthcare Scheme (continued)
Health care Liability in the Balance sheet
31.12.2005 31.12.2004 Opening balance 127.623 120.985 Service cost 4.753 4.515 Interest cost 7.182 7.784 Actuarial losses 2.631 2.016 Benefits paid (8.422) (7.677) Closing balance 133.767 127.623
Provision of healthcare recognized in the profit/loss of the year
1.1.2005- 1.1.2004- 31.12.2005 31.12.2004 Current service cost 4.753 4.515 Interest cost 7.182 7.784 Actuarial loss (recognized) 2.631 2.016 14.556 14.315
d. Special Account for employees’ end-of-period indemnity (for employees hired after the 26.10.1999)
For the employees hired after the 25 October 1999 the Company has the obligation to fully pay the retirement indemnities according to the labor regulations and the collective labor agreements.
Components of Profit/(Loss) Charge 31.12.2005 Opening balance 0 Cost of service 357 Interest cost 69 Employee Contributions 5 Expected return on plan assets (58) Closing balance 373
Net Liability in Balance sheet 31.12.2005 Present Value of obligations 1.548 Less: Unrecognized losses (290) Less: Fair value of plan assets (885) 373
76 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
33. RESERVES FOR EMPLOYEES BENEFITS (continued)
EYDAP Personnel Insurance Fund (PIF):
PIF is an independent legal entity, which operates an auxiliary pension plan to the Company’s employees upon their retirement.
According to the Law 2084/92, the decentralized funds of auxiliary insurance can be merged under conditions in the IKA-TEAM (the auxiliary fund of the largest insurance state organization in Greece). According to an actuarial report that has been submitted to the ministry of Labor and Social insurances, PIO has an actuarial deficit.
Although EYDAP has no legal obligation to cover PIF’s deficits, it is not probable to estimate at the present time whether the company will be required in the future to cover the potential deficits.
REASONS FOR CHANGES IN ACCOUNTING POLICIES
The reasons for the adoption of the deferred recognition approach in the balance sheet and the statement of income of the actuarial gains and losses over the expected remaining working lives of the employees falling outside the ‘corridor’ against the direct recognition in the balance sheet and the statement of income of the actuarial gains and losses are the following:
ǹ) immediate recognition can cause volatile fluctuations in liability and expense. This volatility may not be a faithful representation of changes in the obligation but may simply reflect an unavoidable inability to predict accurately the future events.
B) in the long term, actuarial gains and losses may offset one another. Actuarial assumptions are projected over many years. Departures from the assumptions do not normally denote definite changes in the underlying assets or liability, but are indicators which, if not reversed, may accumulate to denote such changes in the future. They are not a gain or loss of the period but a fine tuning of the cost that emerges over the long term.
77 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
33. RESERVES FOR EMPLOYEES BENEFITS (continued)
Presentation of the change in the accounting policy in Employees Benefits
31.12.2004 31.12.2003
As As As As reported restated reported restated
Cost of Services (197.235) (190.997)
General and administration expenses (73.430) (71.007)
Distribution and selling expenses (28.660) (27.766)
Profit before income taxes 24.133 33.687 Income tax expense (30.793) (28.667)
Net profit (loss) after tax (6.661) 5.019 Earnings per share (0,06) 0,05 Reserve for employees benefits 209.109 154.400 Deferred tax assets 54.430 40.753
Retained Earnings 69.361 110.392
Opening Equity Balance 01.01.ȋȋ 700.454 741.508 720.992 750.343
31.03.2005 31.03.2004
As As As As reported restated reported restated
Cost of Services (46.600) (46.398) (45.468) (43.908)
General and administration expenses (18.401) (18.329) (17.514) (16.908)
Distribution and selling expenses (7.161) (7.136) (6.528) (6.304)
Profit before income taxes 3.222 3.521 (3.021) (632) Income tax expense (2.051) (2.126) (607) (229)
Net profit (loss) after tax 1.170 1.394 (2.414) (862) Earnings per share 0,01 0,01 (0,02) (0,008) Reserve for employees benefits 210.688 155.681 209.109 * 154.400 *
Deferred tax assets (1) 52.065 40.637 54.430 * 40.753 *
Retained Earnings 70.531 111.786 69.361 * 110.392 *
(1) It must be noted that in the account <
(*) the amounts are related with the outstanding balances at 31.12.2004
78 / 95 EYDAP S.A. Annual Bulletin 2005 NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
33. RESERVES FOR EMPLOYEES BENEFITS (continued)
Presentation of the change in the accounting policy in Employees Benefits (continued)
30.06.2005 30.06.2004
As As As As reported restated reported restated
Cost of Services (95.160) (94.892) (92.252) (89.133)
General and administration expenses (36.290) (36.191) (35.954) (34.741)
Distribution and selling expenses (14.654) (14.608) (14.242) (13.796)
Profit before income taxes 18.426 20.457 5.195 10.184
Income tax expense (10.078) (2) (11.800) (1.974) (3) (3.858)
Net profit (loss) after tax 8.348 8.657 3.221 6.326 Earnings per share 0,08 0,08 0,03 0,06 Reserve for employees benefits 212.324 157.203 209.109 * 154.400 * Deferred tax assets 53.733 39.953 54.430 * 40.753 *
Retained Earnings 71.318 112.659 69.361 * 110.392 *
30.09.2005 30.09.2004
As As As As reported restated reported restated
Cost of Services (142.979) (142,639) (144.342) (139.664)
General and administration expenses (54.263) (54.142) (53.948) (52.130)
Distribution and selling expenses (21.724) (21.664) (21.007) (20.337)
Profit before income taxes 42.179 44.580 27.419 34.930
Income tax expense (16.498) (4) (18.509) (10.387) (5) (13.241)
Net profit (loss) after tax 25.681 26.071 17.032 21.689 Earnings per share 0,24 0,25 0,16 0,20 Reserve for employees benefits 214.471 159.244 209.109 * 154.400 * Deferred tax assets 55.064 41.256 54.430 * 40.753 *
Retained Earnings 88.652 130.073 69.361 * 110.392 *
It must be noted that: (2) in the account «income tax» of the restated financial statements as at 30.06.2005 an amount of €1.618 has been recorded that at the report was presented in “Other Operating Expenses” (3) in the account «income tax» of the restated financial statements as at 30.06.2005 an amount of €211 has been recorded that at the report was presented in “Other Operating Expenses” (4) in the account «income tax» of the restated financial statements as at 30.09.2005 an amount of €1.880 has been recorded that at the report was presented in “Other Operating Expenses” (5) in the account «income tax» of the restated financial statements as at 30.09.2005 an amount of €345 has been recorded that at the report was presented in “Other Operating Expenses” (*)the amounts are related with the outstanding balances at 31.12.2004 79 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
33. RESERVES FOR EMPLOYEES BENEFITS (continued)
Presentation of the change in the accounting policy in Employees Benefits (continued) The accounts affected by the change of the accounting policy in Cash Flow Statement were the following:
Profit before income taxes Adjustments for changes in Reserves for Employees Benefits
Period As As As As reported restated reported restated
1.1 - 31.03.2004 (3.021) (632) 3.917 1.528
1.1 - 31.03.2005 3.222 3.521 1.580 1.281
1.1 - 30.06.2004 5.195 10.184 9.927 4.938 1.1 - 30.06.2005 18.426 20.457 3.215 1.184
1.1 - 30.09.2004 27.419 34.930 14.114 6.603 1.1 - 30.09.2005 42.179 44.580 5.363 2.962
34. PROVISIONS FOR PENDING LITIGATION
The account in the accompanying financial statements is analysed as follows:
31 December 31 December 2005 2004
Provisions for pending litigations with employees 20.178 18.417
Provisions for civil law pending litigations 16.769 9.831
36.947 28.248
The Company has formed provisions for civil law pending litigations and of litigations with employees. In relation with the pending litigations and its possible impact on the financial statements see the note 39.1
80 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
35. DEFERRED SUBSIDIES AND CUSTOMER CONTRIBUTIONS The account in the accompanying financial statements is analyzed as follows:
31 December 31 December 2005 2004
Cost:
Investment Subsidies 191.327 189.956
Customer Contributions 76.145 71.327 267.472 261.283 Accumulated Amortization
Investment Subsidies (39.044) (32.923)
- Customer Contributions (20.158) (18.059) (59.202) (50.982) Carrying Amount
Investment Subsidies 152.283 157.033
Customer Contributions 55.987 53.268
208.270 210.301
EYDAP obtains subsidies from the European Union through the Greek State in order to fund specific projects. In addition EYDAP’s Customers (including State and Municipalities) are required to participate in the funding of the initial network connection cost (meters, substations, network connections etc) or its expansion/upgrade.
The above subsidies are recorded upon collection and are reflected in the balance sheet as deferred income. Such sums are amortized over the useful life of the related assets when these are put in operation. Subsidies amortization is recorded against depreciation charge.
36. CONSUMERS' GUARANTEES
The amount is related with guarantees received from customers for the use of the water meter, paid at the time of the initial connection with water supply. These guarantees are repaid back (without interest cost) at the termination date of the connection upon customer’s request. Because the repayment of these amounts is not expected in the near future, these amounts are recorded as long- term liabilities.
81 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
37. OPERATING AND OTHER CURRENT LIABILITIES
The account in the accompanying financial statement is analyzed as follows:
31 December 31 December 2005 2004 Trade creditors 15.469 17.750 Taxes withheld 10.739 11.056 Social insurance contributions and other funds 7.481 7.657 Customer Advances 3.538 2.375 Dividends payable 14.105 16.856 Operating Current Liabilities 51.332 55.694
Payable Expenses 15.889 5.229 Outstanding Credit Accounts 5.429 8.661 Other Current liabilities 6.462 6.548 Short-term Consumers Guarantees 4.200 3.639 Other Current Liabilities 31.980 24.077
The carrying amounts of the operating and other current liabilities approximate their fair value.
Payable expenses account includes an amount of €10.374 related with the expenditures for the transportation and disposal of dehydrated sludge from Psytallia Wastewater.
38. EVENTS AFTER THE BALANCE SHEET DATE
In the framework of its strategic expansion in the power energy production, a call tender will be issued for the construction of a combined thermo-electric power station of 14MW using biogas at the Wastewater Treatment Plant of Psytallia. Another call tender will be issued for the construction of a new combined thermo-electric power station of 0,6MW using biogas at the Wastewater Treatment Plant of Metamorphosis.
The company has already signed three construction contracts for three Small Hydroelectric Plants (SHP).
82 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
39. COMMITMENTS AND CONTINGENT LIABILITIES –ASSETS (continued)
39.1. Liabilities
Contingent liabilities are not recorded in the financial statements but are disclosed unless the possibility of an outflow of resources embodying economic benefits is minimal.
Litigations and claims Lawsuits for civil law cases with claims of an amount of €38 millions have been raised against the Company as at 31 December 2005. These lawsuits are mainly related with damages caused by floods (either because of broken mains of from rainfalls) or they are lawsuits of various trade creditors and subcontractors for violation of contractual terms. There are also pending litigations with employees of around €20,2 millions. Against all these potential losses, when the pending litigation will be finalized, EYDAP has formed a provision of €36,9 millions as at 31 December 2005 and of € 28,2 millions as at 31 December 2004, which are considered as sufficient.
Insurance coverage The Company’s property, plant and equipment are dispersed in many locations, mainly at the Attica region, and therefore risk of a major loss is reduced. The Company does not carry any form of insurance coverage on its assets.
Unaudited by tax authorities fiscal years The tax authorities had not audited the Company, until the fiscal period ended as at 31 December 2004. The accompanying financial statements include a related provision for the additional taxes and fees that are probable to be levied at the finalization of the tax year 2005.
83 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
39. COMMITMENTS AND CONTINGENT LIABILITIES –ASSETS (continued)
39.2 Assets
Investment program: (a) The Company according to its establishment Law 2744/99, has signed a contract with the Greek State, according to which the Greek State undertakes the commitment for the subsidization of EYDAP either from the Community Funds or from the Program of Public Investments for the coverage of the 60% of the capital expenditure, which EYDAP pays for the maintenance, restoration, improvement or the expansion of the water supply and sewerage network system for the 8years period 2000-2008. Against the aforementioned investment program of around €1,22 billion, that includes, as already mentioned, also the maintenances, the Company has spent for capital expenditures as at 31 December 2005 an amount of € 326,58 millions, for which it has the right to receive a subsidy of around €195,95 millions (326,58*60%), while for the maintenance expenditures the Company claims the corresponding subsidy. The Company against the subsidy that has the right to receive has received as at 31 December 2005 an amount of €9,08 millions. On the basis of the above the claim of the Company from the Greek State is raised to at least €186,87 millions (195,95-9,08). Therefore this amount has not recorded in the accounts receivables with an equal debit of the long-term liabilities accounts, the carrying amount of which is gradually transferred in the profit/loss of the period in proportion to the depreciation rate of the subsidized water supply and sewerage network system. If the aforementioned journals were carried out then the profit/loss of the current and the previous year period will be improved by around €5,00 millions and the net equity will be improved by around €20,50 millions.
(b) In addition to these claims the Company has a claim for a subsidy for the maintenance expenditures according to the contract with the Greek State. However it is not feasible to extract the amount that corresponds to maintenance only from the amount of expenditures that are related with the operation and maintenance of installations that amounts to €368,51 millions. The corresponding subsidy that amounts to €221,10 millions it must be finalized after an arrangement with the Greek State.
84 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
40. RELATED PARTY TRANSACTIONS
ǹ) Transactions and amounts outstanding with the Members of the Board
31 31 December December 2005 2004
Salaries (Chairman & CEO and Executive Directors) 443 347 Salaries & participation fees of the Members of the Board of 138 132 Directors
581 479
Ǻ) Transactions and amounts outstanding with the Greek State and the Municipalities 31 December 31 December 2005 2004
1) Transactions Revenues 59.640 57.265 Cost of sales (construction contracts) (4.291) (6.807) Provisions (4.908) (2.952) 2) Outstanding amounts Long term receivables (construction contracts) 89.663 85.114 Long term receivables (Arrangements of Municipalities) 6.342 6.779 Trade receivables 90.894 73.101 Other receivables (coverage of Employees’ end-of-service indemnity) 8.350 6.879
41. PUBLIC ENTITY EYDAP FIXED ASSETS (PE)
The Public Entity was established at the time of the IPO with the purpose of the ownership’s transfer of the water dams and basins of Marathon, Mornos, Yliki and Evinos from EYDAP to PE. Besides the constructions and upgrades of the installations that are related with these water dams and basins, the Greek State – through the Public Entity - has undertaken the obligation to supply the Company with raw water to meet its water supply obligations. The price of the raw water for the 5years 2000-2004 is being offset with the cost of services that EYDAP realizes for the maintenance and operation of the fixed assets that belong by ownership to the Public Entity.
85 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
42. EXPLANATION OF TRANSITION TO IFRSs
The accompanying financial statements have been prepared in accordance with the Standards issued by the International Accounting Standards Committee (IASC) after the amendments of the Law 2190/1920. The more recent financial statements prepared according to the National Accounting Standards were prepared for the year ended at 31 December 2004 and consequently the date of transition to the IFRSs was the 1 January 2004.
Reconciliation Table of Equity at 1/1/2005 and 1/1/2004 between the Greek Accounting Standards and IFRS
The following table (Reconciliation Table) presents in brief the impact of the most significant post-adjustment journal entries over equity as at 1 January 2005 and 2004, that were applied on the financial statements of the Company prepared according to the Greek Accounting standards in order to be conformed with the IFRSs:
01/01/2005 01/01/2004 Equity’s Opening Balance according to the Greek 953.342 797.732 Accounting Standards Presentation of Dividends in the period approved by the shareholders GM 6.390 13.845 Transfer of Subsidies from equity to deferred revenues (157.033) (160.507) Revaluation adjustment of property 0 156.382 Impact from non-recognition of formation expenses as an asset (3.465) (5.175) Provision for slow moving inventory 0 (1.341) Provision for bad debt (2.755) (10.742) Provision for pending litigations (18.417) (16.746) Provisions for employees benefits according to IAS 19 737 4.316 Delivery of water supply projects to the Public Entity and Anti- flooding projects to the Ministry of Environment at no consideration (22.948) (22.948) Sub-contractor fee for water supply and anti-flooding projects 7.969 7.560 Adjustment of revenues related with customer contributions (53.268) (50.526) Adjustment of revenues / expenses to conform with IFRS requirements (7.431) (8.472) Other adjustments (47) (47) Deferred taxation 38.434 47.012 Equity’s Opening Balance restated according to the IFRS 741.508 750.343
86 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
42. EXPLANATION OF TRANSITION TO IFRSs (continued)
Reconciliation Table of Income Statement at 31.12.2005 between the Greek Accounting Standards and the IFRSs.
The following table (Reconciliation Table) presents in brief the impact of the most significant post-adjustment journal entries over income statements as at 31 December 2004, that were applied on the financial statements of the Company prepared according to the Greek Accounting standards in order to be conformed with the IFRSs:
Reconciliation Table of Income Statement at the 31.12.2004
31.12.2004
Income Statement according to the Greek Accounting Standards 28.797
Impact from non-recognition of formation expenses as assets 1.710 Provision for slow moving inventories 1.341
Provision for bad debt 7.987 Provision for pending litigations (1.671)
Provision for employees benefits according to the IAS 19 (3.610)
Sub-contractor fee for water supply and anti-flooding projects 408
Adjustment of revenues related with customer contributions (2.740) Tax audit differences 2.782 Provision for disposal of dehydrated sludge from Psytallia Wastewater Treatment Plant (120)
Adjustment of revenues / expenses to conform with IFRS requirements (1.197)
Deferred Taxation (8.570)
Current Income Tax (20.097)
Income Statement restated according to the IFRS 5.020
87 / 95 EYDAP S.A. Annual Bulletin 2005
NOTES TO THE FINANCIAL STATEMENTS (continued) (all amounts in euro thousands unless otherwise stated)
42. EXPLANATION OF TRANSITION TO IFRSs (continued)
Reconciliation Table of Income Statement at 31.12.2004 between the Greek Accounting Standards and the IFRSs.
a. Investment grants and customers’ contributions for the construction of plant assets: According to the Greek Accounting Standards, investment grants and customers’ contributions collected for the refinancing of the purchase and / or the construction of Company’s plant assets are recorded in equity and amortized over the useful life of the related assets. According to the IFRSs, these investment grants and customer contributions are recorded as deferred revenues (deferred subsidies and customers’ contributions) and amortized over the useful life of the related assets.
b. Revenue recognition from construction contracts on the basis of percentage-of- completion method: The percentage-of-completion method was applied for the recognition of revenue related with the projects constructed from the Company on behalf of the Ministry Of Environment and the Public Entity, according to IAS 11. In the financial statements prepared according to the Law 2190/20 the cost of these projects is recorded in assets as work-in-progress for third parties and the relevant revenue and cost is not recognized in the current income statements according to the percentage-of completion method but, instead, it will be recognized at the time of delivery.
c. Capitalized expenditures: According to the Greek Accounting Standards some expenses (project studies expenses, increase of share capital expenses etc) may be capitalized and amortized either instantly at the time of realization or gradually in 5 years, while according to the IFRSs, while under IFRSs the capitalization of these expenses is not permitted.
d. Provisions for employees’ end-of-service indemnities: According to the Greek Accounting Standards, corporations must form a relevant provision of at least equal to the 40% of the accumulated liability, payable under the assumption that all the staff will be fired at the December 31 of each year. According to the IFRSs such provisions must be formed on the basis of relevant actuarial studies according to IAS 19.
e. Valuation of long-term receivables and liabilities: According to IAS 39 long-term receivables and liabilities with fixed maturity dates are estimated at their present value on the basis of the effective interest rate method.
f. Deferred Income Tax: The Greek Accounting Standards do not permit the recognition of deferred income taxes, something that is obligatory under the provisions of IFRSs.
88 / 95 EYDAP S.A. Annual Bulletin 2005
CONDENSED FINANCIAL DATA AND INFORMATION
ATHENS WATER AND SEWERAGE COMPANY S.A. (E.Y.D.A.P) CONDENSED FINANCIAL DATA AND INFORMATION FOR THE YEAR JANUARY 1 2005 - DECEMBER 31 2005 (published in accordance to the article 135 of the corporate Law 2190, for companies who prepare the annual stand-alone and consolidated financial statements in accordance with IFRS)
The financial data and information listed below provide a summarized view of the financial position and results of EYDAP. The reader who wishes to have a full view of the Company's financial position and results, should have access to the annual financial statements prepared according to the International Accounting Standards, as well as the auditor's report. Furthermore, the reader may visit the company's web site, where the above financial statements are posted.
COMPANY'S INFORMATION
Domiciliation Oropou 156 – Galatsi Registration Number of S.A. 44724/06/B/99/52 Surervising Prefecture Athens Members of the Board of Directors K.Kostoulas, A.Vartholomeos, Th.Georgakelos, E.Baltas, A.Manouris, G.Zafiropoulos, A.Spiropoulos, N.Sigalas, A.Giannouli, G.Mastraggelopoulos, A.Protonotarios K.Galanis, E.Moutafis Date of Approval of Financial Statements 30 March 2006 Chartered Public Accountants M. Hatzipavlou & E. Giouroukos Auditing Company Deloitte Hatzipavlou, Sofianos & Kampanis Public Accountants and Business Consultants SA and Business Consultants SA Type of Auditor’s Report Unqualified opinion – Emphasis of matter Internet address eydap.gr
INCOME STATEMENT Amounts in thousands of Euro
1.01-31.12.2005 1.01-31.12.2004 Turnover 348.741 327.046 Gross profit (loss) 142.902 136.049
Earnings before tax, financial and investment results 38.935 33.496 Earnings before tax, financial, investment results and depreciation and amortization 62.788 56.468 Profit (loss) before tax 36.979 33.687 Less tax 16.995 28.667 Profit after tax 19.984 5.020 Attributable to Shareholders 19.984 5.020 Minority interests 0 0 Earnings per share after tax (in euro) - basic 0,19 0,05 Proposed dividend per share ( in euro) 0,07 0,06
89 / 95 EYDAP S.A. Annual Bulletin 2005
BALANCE SHEET Amounts in thousands of Euro 31.12.2005 31.12.2004 ASSETS Non current assets 1.072.390 1.056.431 Inventories 17.676 18.564 Trade receivables 187.895 165.998 Other assets 93.553 88.868 TOTAL ASSETS 1.371.514 1.329.860 EQUITY AND LIABILITIES Non current liabilities 70.628 72.963 Reserves for employee benefits 160.702 154.400 Deferred subsidies and customer contributions 208.270 210.301 Short term loans and borrowings 83.576 62.904 Other current liabilities 93.100 87.806 Total liabilities (a) 616.276 588.374 Share capital 63.900 63.900 Other items of Shareholders' Equity 691.338 677.586 Total Shareholders' Equity (b) 755.238 741.486 Minority interests (c) 0 0 Total Equity (d)=(b)+(c) 755.238 741.486 TOTAL EQUITY AND LIABILITIES 1.371.514 1.329.860
STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY Amounts in thousands of Euro
31.12.2005 31.12.2004 Equity Balance at the beginning of the year (01.01.2005 and 01.01.2004 respectively) 741.486 750.343 Profit / (Losses) of the year, after tax 19.984 5.020 761.470 755.363 Increase/ (Decrease) of Share Capital 0 0 Distributed Dividends -6.390 -13.845
Net income directly charged to equity 158 -32 Purchase / (sales) of own shares 0 0 Equity Balance at the end of the year (31.12.2005 and 31.12.2004 respectively) 755.238 741.486
90 / 95 EYDAP S.A. Annual Bulletin 2005
CASH FLOW STATEMENT Amounts in thousands of Euro 1.01-31.12-2005 1.01-31.12-2004 Cash Flows from operating activities Profit before tax 36.979 33.687 Adjustments for: Provisions 13.981 4.782 Customers’ Write-offs 0 (4.559) Depreciation and amortization 32.075 31.151 Amortization of customers’ contributions and subsidies (8.221) (8.179) Investment income (21) (20) Impairment of investments 56 115 Interest and related income (2.297) (2.512) Interest and related expense 4.274 2.340 Operating income before working capital changes / changes in operating assets and liabilities (Decrease in) Increase in Trade receivables (27.003) (23.395) Other receivables (7.904) (5.987) Long-term receivables (3.569) (8.016) Materials and spare parts 713 63 Increase in (Decrease in) Operating Current Liabilities (2.361) 1.830 Other current liabilities 7.904 1.303 Consumers' guarantees 797 788 Reserve for employees benefits 6.302 7.325 Minus: Interest and related expenses paid (3.187) (1.880) Income Tax paid (21.107) (23.821) Net cash from operating activities (a) 27.411 5.015 Cash Flows from investing activities Dividends received 21 20 Interest and related income received 2.256 2.425 Purchases of property, plant, and equipment (41.761) (54.464) Purchases of intangible assets (1.624) (587) Proceeds from customers’ contributions and subsidies 6.190 7.415 Investments in associates 0 (70) Net cash from investing activities (b) (34.916) (45.261) Cash Flows from financing activities Proceeds from borrowings 75.500 129.500 Repayments of borrowings (66.832) (80.500) Dividends paid (2.261) (4.369) Net cash from investing activities (c) 6.405 44.631 Net (decrease) increase in cash and cash equivalents (a) + (b) + (c) -1.100 4.386 Cash and cash equivalents, beginning of year 13.321 8.935 Cash and cash equivalents, end of period 12.221 13.321
91 / 95 EYDAP S.A. Annual Bulletin 2005
ADDITIONAL DATA AND INFORMATION
1. The Company has been audited by the tax authorities up to and including 2004.
2. There are no pledges on the Company's fixed assets.
3. The number of employees as at 31 December 2005 and 2004 was 4.240 and 4.043 respectively.
4. Lawsuits for civil law cases with claims of an amount of €38 millions have been raised against the Company as at 31 December 2005. These lawsuits are mainly related with damages caused by floods (either because of broken mains of from rainfalls) or they are lawsuits of various trade creditors and subcontractors for violation of contractual terms. There are also pending litigations with employees of around €20,2 millions. Against all these potential losses, when the pending litigation will be finalized, EYDAP has formed a provision of €36,9 millions as at 31 December 2005 and of € 28,2 millions as at 31 December 2004, which are considered as sufficient.
5. The turnover breakdown according to the statistical classifications of the branches of economic activity STAKOD 03 is 410.0 ( NACE Rev 1.1 is 41.00 -ISIC Rev 3.1 is 4100): Water supply sales amount € 348.741.619 (Sewerage sales are included in this amount).
6. The Company according to its establishment Law 2744/99, has signed a contract with the Greek State, according to which the Greek State undertakes the commitment for the subsidization of EYDAP either from the Community Funds or from the Program of Public Investments for the coverage of the 60% of the capital expenditure, which EYDAP pays for the maintenance, restoration, improvement or the expansion of the water supply and sewerage network system for the 8years period 2000-2008. Against the aforementioned investment program of around €1,22 billion, that includes, as already mentioned, also the maintenances, the Company has spent for capital expenditures as at 31 December 2005 an amount of € 326,58 millions, for which it has the right to receive a subsidy of around €195,95 millions (326,58*60%), while for the maintenance expenditures the Company claims the corresponding subsidy. The Company against the subsidy that has the right to receive has received as at 31 December 2005 an amount of €9,08 millions. On the basis of the above the claim of the Company from the Greek State is raised to at least €186,87 millions (195,95- 9,08). Therefore this amount has not recorded in the accounts receivables with an equal debit of the long-term liabilities accounts, the carrying amount of which is gradually transferred in the profit/loss of the period in proportion to the depreciation rate of the subsidized water supply and sewerage network system. If the aforementioned journals were carried out then the profit/loss of the current and the previous year period will be improved by around €5,00 millions and the net equity will be improved by around €20,50 millions.
7. In addition to these claims the Company has a claim for a subsidy for the maintenance expenditures according to the contract with the Greek State. However it is not feasible to extract the amount that corresponds to maintenance only from the amount of expenditures that are related with the operation and maintenance of installations that amounts to €368,51 millions. The corresponding subsidy that amounts to €221,10 millions it must be finalized after an arrangement with the Greek State.
8. The adoption of the deferred recognition approach in the balance sheet and the statement of income of the actuarial gains and losses is based on the fact that in the long term, actuarial gains and losses may offset one another and furthermore that the immediate recognition can
92 / 95 EYDAP S.A. Annual Bulletin 2005 cause fluctuations and volatility in liability and expense. An extensive report is provided in Note 33 of the financial statements for the year ended at 31 December 2005.
RECONCILIATION TABLE OF EQUITY AT 1/1/2005 AND 1/1/2004 Amounts in thousands of Euro
01/01/2005 01/01/2004 Equity’s Opening Balance according to the Greek Accounting Standards 953.342 797.732 Presentation of Dividends in the period approved by the shareholders GM 6.390 13.845 Transfer of Subsidies from equity to deferred revenues (157.033) (160.507) Revaluation adjustment of property 0 156.382 Impact from non-recognition of formation expenses as an asset (3.465) (5.175) Provision for slow moving inventory 0 (1.341) Provision for bad debt (2.755) (10.742) Provision for pending litigations (18.417) (16.746) Provisions for employees benefits according to IAS 19 737 4.316 Delivery of water supply projects to the Public Entity and Anti- flooding projects to the Ministry of Environment at no consideration (22.948) (22.948) Sub-contractor fee for water supply and anti-flooding projects 7.969 7.560 Adjustment of revenues related with customer contributions (53.268) (50.526) Adjustment of revenues / expenses to conform with IFRS requirements (7.431) (8.472) Other adjustments (47) (47) Deferred taxation 38.434 47.012 Equity’s Opening Balance restated according to the IFRS 741.508 750.343
Athens 30 March 2006,
The Chairman of the The Chief Executive Officer The Chief Financial Officer The Chief Accounting Officer Board of Directors
Kostoulas Konstantinos Vartholomeos Antonios Kakou Evagelia Leventi Maria I.D. No Ȇ 692300 I.D. No ǿ 157854 I.D. No Ĭ 105453 I.D. No Ȉ 099991
93 / 95 EYDAP S.A. Annual Bulletin 2005
INFORMATION ACCORDING TO ARTICLE 10 OF LAW 3401/2005
The following Announcements have been sent for Publication to the Daily Official List of the Athens Stock Exchange. They can also be found in the company’s site under the address www.eydap.gr (Announcements file).
1 19/01/2005 Announcement of important issues (Submission of tender Offers concerning the disposal of dehydrated sludge) 2 28/01/2005 Announcement of important issues (Project assignment concerning the disposal of dehydrated sludge) 3 02/02/2005 Clarifications about press releases (Spot in Saronikos Gulf) 4 11/02/2005 Announcement of decisions that affect EYDAP’s Financial Data (revaluation of land) 5 11/04/2005 Clarifications about press releases (water bottling) 6 14/04/2005 Clarifications about press releases (Disclaimer for the establishment of a subsidiary concerning the water production and bottling). 7 16/05/2005 Announcement concerning changes in the composition of Board of Directors 8 20/05/2005 Announcement concerning changes in the composition of Board of Directors 9 23/05/2005 Announcement concerning changes in the composition of Board of Directors 10 25/05/2005 Announcement of important issues (Project Assignment concerning the disposal of dehydrated sludge to the second lowest bidder, because of the change in the sponsor’s offer terms). 11 30/05/2005 Announcement of important issues (Reminder for the extension of the first quarter 2005 financial statements issuing) 12 06/06/2005 Announcement of the Annual General Meeting of Shareholders 13 29/06/2005 Announcement concerning 2004’s Ex-Dividend 14 30/06/2005 Interim Financial Statements for the 6month period ended at 31 March 2005 according to the IFRS (Publication in Express and Adesmephtos Tipos newspapers) 15 30/06/2005 Financial Data and Information for the 3month period ended at 31 March 2005 16 14/07/2005 Announcement concerning changes in the composition of the Board of Directors 17 14/07/2005 Approval of operation manual concerning Internal Audit Management 18 30/09/2005 Interim Financial Statements for the 6month period ended at 30 June 2005 according to the IFRS (Publication in Elephtheros Tipos and Kerdos newspapers) 19 30/09/2005 Financial Data and Information for the 6month period ended at 30 June 2005 20 30/11/2005 Interim Financial Statements for the 9month period ended at 30 September 2005 according to the IFRS (Publication in Kathimerini and Naphtemporiki newspapers)
The financial statements, the Auditor’s report as well as the Management Report of the Board of Directors, are posted on the company’s official website www.eydap.gr, section “Financial Reports”.
94 / 95 EYDAP S.A. Annual Bulletin 2005
ATHENS WATER SUPPLY & SEWERAGE COMPANY SA
Shareholders Service Department Contact Person: N. Katinas Tel.: +30 210 2144790, 4789, 4788 Fax: +30 210 2144777 e-mail: [email protected]
95 / 95