Annual Report 2019
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ANNUAL REPORT 2019 Ljubljana, April 2020 I Business Report II Financial Report Content I Business report ...................................................................................................................... 5 Statement of management's responsibilities .................................................................................................. 6 I.1 Information about the Company and key business data .......................................................................... 7 I.2 Letter from the Management ................................................................................................................. 12 I.3 Mission, vision, values, strategic policies and integrated management system policy .......................... 14 I.4 Corporate Governance Statement of DARS d.d. ..................................................................................... 17 I.5 Non-financial reporting at DARS d.d. ...................................................................................................... 23 I.6 Analysis of business performance ........................................................................................................... 24 I.7 Significant business events in the 2019 financial year ............................................................................ 26 I.8 Risk management .................................................................................................................................... 28 I.8.1 Business risks ............................................................................................................................... 28 I.9 Business activities of the Company ......................................................................................................... 35 I.9.1 Business performance and the achievement of plans ................................................................. 35 I.9.2 Tolling .......................................................................................................................................... 36 I.9.3 Motorway maintenance .............................................................................................................. 37 I.9.4 Traffic safety management and provision ................................................................................... 38 I.9.5 Investments ................................................................................................................................. 41 I.9.6 Debt repayment ........................................................................................................................... 47 I.10 Motorways and expressways in the Republic of Slovenia and traffic loads ........................................... 48 I.11 Investments in motorway development and reconstruction ................................................................. 54 I.11.1 Investments on behalf of and for the account of the RS ............................................................. 54 I.11.2 Investments on behalf of and for the account of DARS d.d. ....................................................... 54 I.12 International cooperation and acquisition of European grants .............................................................. 55 I.13 Self-assessment using the EFQM Excellence Model ............................................................................... 56 I.14 Integrated management system ............................................................................................................. 57 I.15 Internal auditing ...................................................................................................................................... 58 I.16 Sustainable development ....................................................................................................................... 59 I.16.1 Strategic management of sustainable development at DARS d.d. ................................................... 59 I.16.2 Research and development activities .......................................................................................... 61 I.16.3 A responsible attitude to clients and customer satisfaction ....................................................... 61 I.16.4 Traffic and concern for safety ...................................................................................................... 64 I.16.5 Projects in traffic management and concern for user safety ...................................................... 65 I.16.6 Human resources management .................................................................................................. 71 I.16.7 Responsibility to the natural environment .................................................................................. 75 I.16.8 Inclusion in the wider society ...................................................................................................... 76 I.16.9 Responsibility to suppliers/contractors ....................................................................................... 77 I.16.10 Communication ........................................................................................................................... 78 I.17 Report of the Supervisory Board for 2019 .............................................................................................. 80 II Financial report .................................................................................................................... 83 3 ANNUAL REPORT 2019 DARS Acronyms and abbreviations ABC Automatic non-cash toll collection MW Motorway ASECAP L'Association Européenne des Concessionnaires d'Autoroutes et Ouvrages à Péage (European association of Operators of Toll Road Infrastructures) RDB Road data bank DARS d.d. Družba za avtoceste v Republiki Sloveniji d.d. (Motorway Company in the Republic of Slovenia) DMR Digital radio connections NSP National spatial planning EBITDA Earnings before interest, taxes, depreciation and amortisation ETS Electronic tolling system EIS Energy information system BP Building permit GRI GS Global Reporting Initiative Global Standards EW Expressway IBTTA International Bridge, Tunnel and Turnpike Association PD Preliminary Design ITS Intelligent transportation systems IBCP International border crossing point MESP Ministry of the Environment and Spatial Planning MI Ministry of Infrastructure NMCP National Motorway Construction Programme in the Republic of Slovenia BPD Building Permit Design PIARC World Road Association TIC Traffic information centre for public roads AADT Average annual daily traffic FTF Free traffic flow ED Executive Design R3 Motor vehicles with two or three axles and a maximum permissible laden weight exceeding 3500kg and groups of motor vehicles with two or three axles and a maximum permissible laden weight exceeding 3500kg. R4 Motor vehicles with more than three axles and a maximum permissible laden weight exceeding 3500kg and groups of motor vehicles with more than three axles and a maximum permissible laden weight exceeding 3500kg. RS Republic of Slovenia SSH Slovenian Sovereign Holding TCMS Traffic Control and Management System SAS Slovenian Accounting Standards 2006 ZDARS Motorway Company in the Republic of Slovenia Act (ZDARS-UPB1) (Official Gazette of the Republic of Slovenia, No. 20/2004) ZDARS-1 Motorway Company in the Republic of Slovenia Act (Official Gazette of the Republic of Slovenia, No. 97/2010 – ZDARS-1) ZGD-1 Companies Act (Official Gazette of the Republic of Slovenia, Nos. 65/2009 – official consolidated text, 33/11, 91/11, 32/12, 57/12, 44/13 – CC dec., 82/13, 55/15 and 15/17) ZUJF Fiscal Balance Act (Official Gazette of the Republic of Slovenia, No. 40/2012) 4 ANNUAL REPORT 2019 DARS I Business report 5 ANNUAL REPORT 2019 DARS Statement of management's responsibilities Members of the Management Board of DARS d.d., Furthermore, the Management Board declares that responsible for the compilation of the Annual the Company’s financial statements have been Report of DARS d.d. for 2019, certify herewith that prepared under the assumption of a going concern, this Annual Report, including the Corporate that the selected accounting policies have been Governance Statement, has been compiled and used consistently, and that any amendments to published in compliance with the Companies Act, them have been disclosed. the Market in Financial Instruments Act and the Slovenian Accounting Standards. The Management Board is also responsible for the appropriate accounting system and the adoption of The Annual Report of DARS d.d. for 2019, along measures to secure and preserve the value of the with the financial statements and notes, provides a Company assets, as well as to prevent and detect true and fair presentation of the assets and fraud and other irregularities and/or illegal acts. liabilities, financial situation and profit or loss of DARS d.d. Tomaž Vidic, PhD Gašper Marc, MSc Vili Žavrlan Rožle Podboršek Chairman of the Board Member of the Board Member of the Board Member of the Board/Labour Manager Celje, 9 April 2020 6 ANNUAL REPORT 2019 DARS I.1 Information about the Company and key business data NAME Družba za avtoceste v Republiki Sloveniji d.d. DARS d.d. REGISTERED OFFICE Ulica XIV. divizije 4, 3000 Celje Phone: +386 (0)3 426 40 71 Fax: +386 (0)3 544 20 01 BRANCH OFFICE Dunajska 7, 1000 Ljubljana Phone number: +386 (0)1 300 99 00 Fax: +386 (0)1 300 99 01 WEBSITES www.dars.si www.promet.si YEAR OF ESTABLISHMENT 1993 REG. ENTRY NO. 1/06158/00, District Court of Celje FOUNDER Republic