BRAtislavská vodárenská spoločnosť 2011 ANNUAL REPORT TABLE OF CONTENTS Table of Contents 3 Rates for producing, distributing and supplying drinking water Introduction by the Chief Executive Officer 6 and for wastewater disposal 27 Introduction from the Chairman Human Resources 29 of the Supervisory Board 7 In the Media 31 Aims and Goals for 2012 8 Corporate Responsibility 33 Corporate Profile 9 Company Water Museum 35 Corporate Bodies 10 Safe Company 38 Executive Management 12 Information technologies 39 Statements of Vision and Mission 13 Capital Investment 40 Core Business 16 Prospects for Modernising Infrastructure 42 Production and Distribution of Drinking Water 17 Report on the Supervisory Board’s Activity 44 Wastewater Disposal and Treatment 19 Corporate Finance 48 Laboratory Work 21 Independent Auditor’s Report 98 Subsidiaries 23 Our Customers 26 3 INTRODUCTION BY THE CHIEF EXECUTIVE OFFICER INTRODUCTION FROM THE CHAIRMAN OF THE SUPERVISORY BOARD AIMS AND GOALS FOR 2012 CORPORATE PROFILE CORPORATE BODIES EXECUTIVE MANAGEMENT STATEMENTS OF VISION AND MISSION 2011 Annual Report INTRODUCTION BY THE CHIEF EXECUTIVE OFFICER Ladies and Gentlemen! Capital construction included the reconstruction of wastewater tre- atment facilities in Senica and Holíč, where the Senica plant is being Before you start browsing funded from our own resources while funding for Holíč is being pro- through our company’s 2011 vided by the European Union. This year saw trial operation at the Annual Report, let me first Hamuliakovo wastewater treatment facility end, with permanent ope- express my admiration for all ration launched on 31 May. those who guarantee a con- stant supply of good quality Following a change in the majority shareholder’s statutory represen- drinking water from our taps, tative, there was a turnover of staff at corporate bodies during July to be returned to nature after 2011 and also in the company’s executive management on 1 August it has been consumed, tre- 2011. Having assumed responsibility from the previous manage- ated and purified. I find it a ment, we as the new management are entrusted with the company’s great commitment for myself water resources, continuous supply of high-quality drinking water, to head a company on which discharge and treatment of wastewater and, last but certainly not thousands of families and en- least, managing our company’s hundreds of employees. Having un- terprises are dependent. dergone a thorough audit of the company, we are introducing chan- ges to move BVS towards becoming an economically efficient com- 2011 marked a jubilee for Bratislavská vodárenská spoločnosť. On pany with a high level of services. The company has been gradually 7 February we celebrated the 125th anniversary of Bratislava’s first making changes in its management structures and, consequently, metropolitan water supply facility by organizing a host of activities. procedural and structural changes at every section. The aim of these The company issued a special brochure to celebrate the event, of- changes is a more effective setup of processes, improved work effi- fered an amnesty to those reporting unauthorised use of water and ciency and provisioning in terms of both costs and revenues. discharge of wastewater into public sewers, and used a special 125 Corporate management has opted for a new approach in monitoring logo throughout the year. performance indicators, taking the Balanced Scorecard approach. More details can be found further in this Annual Report. We continued projects the company had been running. As part of We saw bettering relationships among different sections and the Infra BVS’s education program for children and youth, “Blue School – Wa- Services and Bionergy subsidiaries to be necessary, and they too ter for the Future”, five drinking water fountains were set up at two have undergone changes in both their respective corporate bodies elementary schools, a secondary school and two universities. In futu- and executive management. re, we intend to carry on this project by setting up additional drinkable water fountains at other public spaces. Having said that, our primary and most vital job remains providing the services we offer professionally and responsibly. I am confident that BVS is going to be a reliable partner of satisfied customers. Ing. Radoslav Jakab Chairman of the Board of Directors and Chief Executive Officer 6 INTRODUCTION FROM THE CHAIRMAN OF THE SUPERVISORY BOARD Esteemed Sharehol- BVS is supplying high-quality drinking water to approximately 1 million ders, Dear Colleagues, people in Slovakia’s most dynamic region. However, it has become a sad rule that the supply of drinkable spring water dwindles in most of the For BVS, 2011 was a year of territory we serve, particularly during the summer months, and BVS’s changes in the management water supply must be supplemented to a critical extent by drinking water of the company and both its from wells located outside Bratislava. These abundant and superior so- subsidiaries, Infra Services urces of water have therefore become absolutely strategic and indispen- and BIONERGY, echoing the sable sources for a self-sufficient supply of drinking water. This is why we outcome of local elections in feel obligated to protect these wells against any possible contamination November 2010. while trying to discourage any other activity in these localities. The company finished 2011 Finally, I would like to thank all members of the Supervisory Board for with a profit of €1,323,000, showing their confidence in me. I also acknowledge the shareholders, an increase from 2010 results. the Board of Directors, our partners and employees. It is my desire that This earnings figure allows the confidence placed upon all members of the Supervisory Board will me to thank all of those who be motivational in the forthcoming term. played a part. I am also pleased about the company’s activities in capital construction, Ing. Milan Šindler enhancing water-supply and sewer systems in response to the needs of Chairman of the Supervisory Board our towns and municipalities. With a €40 million budget for investments in 2011, we stood among the region’s greatest investors using the servi- ces of domestic companies. 7 2011 Annual Report AIMS AND GOALS FOR 2012 Since its incorporation, BVS has been undergoing significant Our company is prepared to take this path. In specific areas changes that are progressive and aimed at developing it into where internal prerequisites are being built as well as in exter- a modern municipal company in the effort to attain European- nal relations, there are particular plans, activities and partnerships -level quality. This requires making both sides work together. The well underway. A good example is our active role in the Danubian chosen business model requires attracting and enhancing talents Knowledge Cluster and our involvement in DEWALOP, a cross- in human resources. Modern approaches to today’s manage- -border project to explore leaks and water loss. Because state- ment offer a multitude of methods and tools. Having introduced -of-the-art information technologies are an indisputable basis of and being keen to defend next year our ISO 9001:2000 and ISO professional management, we had been thinking about deploying 14001:2000 certificates, badges of management excellence and them more dynamically and possibly overhauling them. This was environmental management, respectively, our company is moving when we were phasing out our current contractual relationships again forward. with suppliers, reassessing them and searching for better quality and reliability. In corporate management, we decided at the end of 2011 to em- ploy a new approach in monitoring performance indicators in four Our decision was, among other things, propelled by EEA mem- fundamental perspectives: financial; “learn and grow”; procedural bers being required to have transparent and publicly accessible and, ultimately, customers. Using the Balanced Scorecard, we information on overall corporate infrastructure. A geographic in- have been pursuing a balanced and causal relationship among formation system connected to a fully-featured economic and these four tiers of BVS’s growth and its transformation into a mo- operation information system is soon going to provide a basis dern corporate entity and, even more, a leader in the network for planning development and reconstruction of the water-sup- industry for the Bratislava region and all of Slovakia. As a major ply and sewerage network in a region that has been constantly priority, corporate and household revenues have been effectively advancing at a very dynamic pace. Accordingly, our priority in the redistributed by a responsible, professional team with the neces- forthcoming period will surely be shifting towards arranging and sary skills to create sufficiently functional processes to make our advancing our network, its operation and maintenance. This goal customers loyal and happy. This direction is a worldwide trend can only be met with a perfect knowledge base and sophisticated and many large corporations in the network industry are today monitoring. We have succeeded in obtaining EU funds for buil- using the four- perspective approach BVS has chosen. ding a hydraulic model that allows diverse alert situations to be modelled. This development requires extremely responsible ma- nagement as we strive to meet our shareholders’ expectations in the relatively difficult economy prevailing in Slovakia, Europe and globally. 8 CORPORATE PROFILE