PVPS ANNUAL REPORT Podtatranská vodárenská prevádzková spoločnosť, a. s. table of contentsAnnual Report PVPS, a. s. 2017 4 Basic data 6 Corporate Statutory Bodies 23 Quality Supervision Department 8 Key Data of 2017 23 Drinking Water 10 Company´s Chief Executive 23 Wastewater Officer‘s Word of Introduction 12 Company‘s Organizational Structure 24 Customers 14 Our services 24 Customer Approach 24 Projects 14 Drinking Water Production and Distribution 25 External Communication 16 Selected Technical Parameters 25 Customer Services 17 The Department for Technical 26 Satisfaction Rate Survey and Operational Activities 27 Rates for Production, Distribution and Wastewater Treatment 18 Water Meters 19 Breakdowns in Water Mains Network 19 Water Loss Reduction 28 Top Customers 20 Sewerage and WWTP 30 Human resources 20 Breakdown Elimination Overview 31 Employees Structure - Sewerage Network 32 Age Structure of the Employees 21 Volumetric Indicators 32 Qualification Structure 21 Selected Operating Data of the Employees 21 New Operation Contracts 33 Structure of Employees According 22 Water Quality to the Duration of Employment 2 ANNUAL REPORT 2017 contentsAnnual Report PVPS, a. s. 2017 42 Innovations 33 Social Area 42 Innovations in the Area of Water 33 Education of Employees Production and Distribution 33 Internal Communication 43 Important Reconstruction Activities and Repair in the Area of Sewerage 34 Occupational Health and Safety and WWTP 43 Innovations of the Control System 36 Environmental of Production Management Education & Awareness 44 Care for Property, Plant 37 Educational Projects for Schools and Equipment 37 Slovakia-wide Employee Skills 44 Repairs by Company Staff Competition in Water Sector 45 Repairs by External Staff 37 World Water Day 45 Investment Purchase 37 Photography Contest for Employees 37 Excursions for Schools 46 Financial part 37 Support of Regional Activities 47 A Commentary on the Economic Results of the Company 38 Environment 48 Balance Sheet 50 Profit and Loss Statement 39 Waste Management 51 Cash Flow Statement 39 Production of Electricity 52 Independent Auditor‘s Report 40 Quality Management 56 Report by the Supervisory Board System 56 Intentions for the Year 2018 41 Succesful Maintaining of ISO Certificates 58 Contacts Podtatranská vodárenská prevádzková spoločnosť, a. s. 3 background data Business Title: Podtatranská vodárenská prevádzková spoločnosť, a.s Company Headquarters: Hraničná 662/17 058 89 Poprad Date of Incorporation: 21 December 2004 Legal Form: Public Limited Company Business Identification Number: 36 500 968 VAT Identification Number: SK 2021918459 Share Capital: 33,200 € Entered in: Commercial Register of the District Court in Prešov in Section Sa, Insert No: 10301/P Net Turnover as of the year 2017: 23,904,644 € Profit/Loss Result Result for the Accounting Period before Tax (EBT): 885,789 € Profit/Loss Result Result for the Accounting Period after Tax: 693,631 € EBT/ Turnover Ratio: 885,789 / 23,904,644 = 3.71 % 4 ANNUAL REPORT 2017 scope of main business activities • operation of category 1 public PODTATRANSKÁ water supply networks, VODÁRENSKÁ • operation of category 1 public PREVÁDZKOVÁ sewerage networks, SPOLOČNOSŤ, PLC. PROVIDES FOR THE • intermediation of trade and services within the scope of free FOLLOWING ACTIVITIES trades, WITHIN THE TERRITORY OF ITS OPERATION: • building of constructions and their alterations, • concept of development strategy • construction supervision, and drinking water supply, engineering constructions – water collection and treatment of management projects, wastewater, • laboratory water analyses, • production and supplies of drinking excluding official measurements, water for population, industry, and agriculture, • assembly, repair, maintenance, expert inspections and expert tests • wastewater collection from of electrical equipment, towns and villages, waste water treatment, • business activities within the field of hazardous waste management • protection of water sources, and management of other than • laboratory activities – chemical, hazardous waste. microbiological and biological analyses of water THE GOAL OF THE COMPANY is to adhere to the scope of business activities to its full extent and to provide that as many inhabitants get connected to the water mains THE COMPANY DOES NOT HAVE AN network and sewerage network ORGANIZATIONAL UNIT ABROAD. as possible. Podtatranská vodárenská prevádzková spoločnosť, a. s. 5 corporate statutory bodies as of 31 December 2017 6 ANNUAL REPORT 2017 BOARD OF DIRECTORS RNDr. Tomáš Paclík - chairman Philippe Guitard - member Ing. Martin Bernard, MBA - member Ing. Robert Tencer - member Ing. Peter Martinka - member SUPERVISORY BOARD Ing. Ján Mlynár chairman until 31 October 2017 Ing. Zuzana Kováčová chairman from 1 November 2017 Ing. Jozef Havrila - member Mgr. Zuzana Nebusová - member Ing. Peter Dobrý - member Vladimír Majkuth - member Ing. Viktor Haydren, PhD. - member Igor Iľko - member until 21. March 2017 Mgr. Katarína Hamraková - member from 22. March 2017 Ing. Štefan Kováč - member Mgr. Jan Hrabák, PhD. - member COMPANY´S EXECUTIVE MANAGEMENT Ing. Robert Tencer chief executive officer Ing. Eva Sýkorová finance director Ing. Mikuláš Kovaľ production director Ing. Patrik Tkáč, PhD., ACCA sales director Podtatranská vodárenská prevádzková spoločnosť, a. s. 7 key data 8 ANNUAL REPORT 2017 306,479 Number of People Supplied 522 Number of Employees 15,654 thous. m3 Produced Water Volume 35,424 thous. m3 Treated Waste Water Volume 2,351 km Length of Operated Water Mains Network 24 Number of Water Treatment Plants 644.97 km Length of Operated Sewerage Network 30 Number of Waste Water Treatment Plants 2,053 Number of Breakdowns in Water Network 31.34 % Water Loss in Water Network 44,441 Number of Contractual Customers 46,405 Number of Invoicing Water Meters Company auditor: KPMG Slovensko spol. s r.o. Dvořákovo nábrežie 10 811 02 Bratislava Podtatranská vodárenská prevádzková spoločnosť, a. s. 9 Company’s Chief Executive Officer’s Word of Introduction Dear shareholders, business partners, dear customers and colleagues, we would like to present you the annual report of the company Podtatranská vodárenská spoločnosť, plc. Poprad that brings forward company´s results for the year 2017. 10 ANNUAL REPORT 2017 Company’s Chief Executive Officer’s Word of Introduction The year opened a new decade of the existence of Within the scope of further education the company our company whose priority is to provide its cus- emphasized the importance of underground and tomers reliable services regarding drinking water surface water sources protection as well as the im- supplies and wastewater colection and treatment portance of environmental protection by means of at a level required by our as well as European gener- discussion meetings, excursions, contests and edu- ally binding rules. cational projects for pupils and students. The employees of our company treated 15,654 m3 During the year 2017 no events occurred that would of drinking water and collected and treated have significantly affected the „ordinary operation“ 35,424 m3 of waste water. The company provided of the company. The continuous running of the drinking water for 306,479 inhabitants and took company was not disturbed. The company keeps care of 2,351 km of water mains and 645 km of a high level of the introduced integrated manage- sewerage network. ment system (ISO 9001, ISO 14001, ISO 18001 and ISO 50001). We continued meeting our customers and consum- ers halfway and helped them to deal with their Finally, I would like to thank all shareholders, Com- documents at our Customer Care Centres in Poprad, pany Bodies´ members, colleagues, business part- Spišská Nová Ves and Stará Ľubovňa. Many of our ners and all those who helped us achieve the results services are also available on our Company´s Inter- in the year 2017. Thank you for your confidence and net page, via our Call Centre, mobile telephones, or cooperation and we hope that you will continue to via emails. Customer care is a long-term priority of favour us with your support next year as well. our company. Among our high-standard services there are for example breakdown repair of parts of water mains and sewerage network, water treatment plants, wastewater treatment plants, as well as repair of operational facilities. Robert Tencer Chief Executive Officer of PVPS, plc. Podtatranská vodárenská prevádzková spoločnosť, a. s. 11 PVPS, a.s. Poprad Administration Occupational Health and Safety Department Legal and Organizational Department Finance Director Section structure company’s FINANCE AND TAXES DEPARTMENT ACCOUNTING DEPARTMENT PLANNING, PRICING AND CONTROLLING DEPARTMENT CENTRAL PROCUREMENT DEPARTMENT organizational 12 ANNUAL REPORT 2017 General Assembly Supervisory Board Civil Protection Board of Directors Department HR Department CEO Section IT Department Quality Supervision Production Sales Director Director Section Section ADMINISTRATION DEPARTMENT OF TECHNICAL AND TECHNOLOGICAL ACTIVITIES CUSTOMER CARE CENTRE CONTROL ROOM AND GIS DPT. BACK OFFICE OPERATION POPRAD CALL CENTRE OPERATION SPIŠSKÁ NOVÁ VES OPERATION STARÁ ĽUBOVŇA CUSTOMER CARE CENTRE FRONT OFFICE OPERATION OF TECHNICAL SERVICES Podtatranská vodárenská prevádzková spoločnosť, a. s. 13 our services drinking water production and distribution Public water mains operated by PVPS, plc. are supplied mainly from underground water sources, but there are also locations in our scope of activity where the collection of surface water is the main source of