6 FINANCIAL STATEMENTS of SLOVENSKE ŽELEZNICE, D
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ANNUAL REPORT 2017 1 ABOUT SLOVENSKE ŽELEZNICE S Key performance indicators of the Slovenske železnice Group for 2017 5 Significant events in 2017 6 Significant events after the end of the 2017 financial year 12 S Statement of the Director General 14 S Statement of responsibility of the Management Board 16 S Report of the Supervisory Board 18 S General information 22 S Business model and development policies 24 Implementation of systemic measures 25 Implementation of key internal measures 26 Key stakeholders 27 S Corporate Governance Statement 30 S Statement regarding non-financial operations 39 2 3 BUSINESS REPORT FINANCIAL REPORT S Operating environment 41 1 Introductory notes to the financial statements 147 S Performance analysis 42 1.1 Basis for compiling the financial statements 147 S Analysis by activity 49 1.2 Significant accounting policies 148 Freight transport 49 2 Consolidated financial statements of the Fersped 53 Slovenske železnice Group 158 Passenger transport 56 2.1 Consolidated statement of financial position 158 Traction and Technical Services 64 2.2 Consolidated statement of profit or loss 159 PRI management 66 2.3 Consolidated statement of other Construction 72 comprehensive income 159 Support activities 74 2.4 Consolidated statement of cash flows 160 S Analysis of financial position 77 2.5 Consolidated statement of changes in equity 161 S Profit and loss by individual company/activity 80 2.6 Notes to the consolidated financial S Collection of statements of financial position of statements 162 Group companies as at 31 December 2017 94 3 Financial risks within the Slovenske železnice S Social responsibility 98 Group 190 Social responsibility in 2017 99 Interest rate risk 190 Employees 100 Currency risk 191 Traffic safety and regulation 109 Liquidity risk 193 Engagement with the wider environment 109 Credit risk 194 Environmental responsibility 114 4 Capital adequacy management 195 S Disclosures by key activity 119 5 Carrying amount and fair value of financial Quality management system 119 instruments 196 Investments 124 Audit report of the Slovenske železnice Participation in the international environment 128 Group for 2017 199 Information technology 129 6 Financial statements of Digitalisation 131 Slovenske železnice, d. o. o. 202 Research and development 132 6.1 Statement of financial position 202 S Management of risks and opportunities 136 6.2 Statement of profit or loss 203 S Status and development of corporate reporting 6.3 Statement of other comprehensive income 203 by Slovenske železnice 139 6.4 Statement of cash flows 204 S GRI table 141 6.5 Statement of changes in equity 205 General standard disclosures 141 6.6 Notes to the financial statements 207 Specific standard disclosures 144 7 Financial risks at Slovenske železnice, d. o. o. 225 Interest rate risk 225 Currency risk 226 Liquidity risk 227 Credit risk 228 8 Capital adequacy management 229 9 Carrying amount and fair value of financial instruments 230 Audit report of Slovenske železnice, d. o. o. for 2017 233 WE SUCCEEDED In the context of ambitious objec- tives set for Slovenske železnice, the 2017 financial year was dynamic, but exceeded expectations. Despite numerous negative factors, we suc- ceeded in maintaining the positive trend in key performance indicators, and made significant progress in the implementation of systemic and in- ternal measures that were set out in the Strategic Business Plan of the Slovenske železnice Group for the period 2016–2020. 4 ABOUT SLOVENSKE ŽELEZNICE 1 S KEY PERFORMANCE INDICATORS OF THE SLOVENSKE ŽELEZNICE GROUP FOR 2017 OPERATING RESULTS comparison 2012–2017 2012 2017 EARNINGS BEFORE INTEREST AND TAXES 12,062 30,941 (EBIT; EUR thousand) NET PROFIT OR LOSS 3,479 30,644 (EUR thousand) RETURN ON EQUITY 2.5 9.6 (ROE; in %) RETURN ON ASSETS 0.5 5.4 (ROA; in %) FINANCIAL LIABILITIES 380,299 124,037 (EUR thousand) VALUE-ADDED PER EMPLOYEE 33,517 42,134 (in EUR) AVERAGE NUMBER OF 8,543 7,403 EMPLOYEES GOODS TRANSPORTED 16,181 20,960 (in thousand tonnes) PASSENGERS CARRIED 15,512 13,422 SPECIFIC ELECTRICITY CONSUMPTION FOR TRACTION 21.99 21.29 (kWh/thousand GTKM) SPECIFIC GAS OIL CONSUMPTION 8.37 7.16 (kg/thousand GTKM) Key performance indicators of the Slovenske železnice Group for 2017 ABOUT SLOVENSKE ŽELEZNICE 5 S SIGNIFICANT EVENTS IN 2017 January TTTTTTTTTTTT the Management Board of Slovenske železnice, d. o. o. Milan Jelenc expired on 14 February 2017. On the same S Slovenske železnice was acknowledged for its Inte- day, Mr Jelenc assumed the position of adviser to the grated Public Passenger Transport project and received Management Board of Slovenske železnice, d. o. o. the Transport Ticketing Global Award 2017 for Most In- novative Customer Serving Operator. Slovenske železnice S In accordance with indent 1 of paragraph 2 of Article received first prize amongst fierce global competition. 15 of the Articles of Association of Slovenske železnice, d. o. o., the Supervisory Board of Slovenske železnice d. o. o. approved the proposed business plan of the Slovenske železnice Group and the proposed business plan of Slov- enske železnice, d. o. o. for 2017, including a forecast of operations for the period 2018–2019. S The Slovenian government adopted a resolution on the conclusion of the Agreement on the discharge of public service obligation in the inland and cross-border regional transport of passengers by rail for the period 2017–2031. March TTTTTTTTTTTT S The Agreement on the discharge of the public service obligation in the inland and cross-border regional trans- port of passengers by rail was signed for the period from 1 January 2017 to 31 December 2031. The aforementioned S The Forum Train Europe (FTE) conference for the agreement set out the amount of funds for the financing preparation of timetables for international transport of obligations arising from the public service obligation, during the 2017/2018 season was held in Ljubljana. and the maximum amount of investment costs included in compensation for the public service obligation. S The transportation of grains was reorganised. Activ- ities included the optimisation of train movements and ensuring the improved quality of services. February TTTTTTTTTTTT S The Supervisory Board of Slovenske železnice, d. o. o. approved the appointment of Melita Rozman Dacar to the position of managing director of SŽ-Tovorni prom- et, d. o. o. as of 15 February 2017 for a four-year term S Representatives of SŽ-Potniški promet, d. o. o. met in of office, approved the appointment of Dušan Žičkar to Trieste with the presidency of the Italian Confederation the position of managing director of SŽ-VIT, d. o. o. as of Sustainable Mobility to raise awareness of the need of 18 February 2017 for a four-year term of office and, for train connections between Ljubljana and Trieste. A based on the proposal of the works council of companies representative of the Austrian Federal Railways (ÖBB) linked through capital investments within the system of also attended the event. There are currently ten Sloven- Slovenian Railway Companies, appointed Albert Pavlič ske železnice trains running daily between Ljubljana and to the position of member of the Management Board – Opicina, and four daily bus connections that are organ- Workers’ Director as of 15 February 2017 for a four-year ised by SŽ-Potniški promet, d. o. o. between the Ljubljana term of office. The four-year term of office of member of and Trieste train stations. 6 ABOUT SLOVENSKE ŽELEZNICE Key performance indicators of the Slovenske železnice Group for 2017 April TTTTTTTTTTTT May TTTTTTTTTTTT S Slovenske železnice was visited by a delegation from S The Ljubljana Container Terminal received a Holland Republika Srpska Railways, which is planning corporate Container Innovations certificate as recognition of the restructuring in cooperation with the World Bank, and qualifications required to work with that organisation’s is gathering experience from other railway companies. containers. S The season of museum train rides from Celje to S The Slovenian government and SŽ-Infrastruktura, Podčetrtek began. Take the Train Across the Celje Region d. o. o. concluded Annex 3 to the Agreement on the provi- is a joint project of Slovenske železnice, the Celeia Insti- sion of services by the manager of the public rail infrastruc- tute of Cultural Events and Tourism and 21 municipalities ture for the period 2016–2020. The aforementioned annex in this region of Slovenia. covers the period 1 January 2017 to 31 December 2017. S The Divača station was included in the remote control system from the Postojna Traffic Control Centre (CVP Pos- tojna). The traffic remote control system has been imple- mented on the entire line from the Ljubljana station to the Koper freight station. S Slovenske železnice, the Chamber of Publishing and Book-Selling and the Transport Association (both with- in the Chamber of Commerce and Industry of Slovenia) hosted the EU Commissioner for Transport Violeta Bulc as part of the Reading is the Best Journey event. The Com- missioner read to random passengers together with some well-known Slovenian writers aboard the train between Ljubljana and Postojna. The event was organised as part S SŽ-Tovorni promet and SŽ-VIT made presentations at of the Slovenia Reads campaign. a joint exhibition stall at the Transport Logistic trade fair in Munich. The aforementioned trade fair is one of the most important business events in the railway and logis- tics sector, bringing together more than 2,000 exhibitors from over 60 countries. A large majority of the companies with whom we already cooperate attended the fair, but we also had the opportunity to establish contact with potential users of our services. We attended more than 90 business meetings over four days covering a variety of topics. We also signed several agreements on strategic partnerships with both customers and other operators.