Annual Reportof Elektro Primorska d.d. Company
and Elektro Primorska Group for Year 2014
Annual Reportof Elektro Primorska d.d. Company
and Elektro Primorska Group for Year 2014
KAZALO
A. BUSINESS REPORT
1. MANAGEMENT REPORT
2. MANAGEMENT RESPONSIBILITY STATEMENT
3. SUPERVISORY BOARD REPORT
4. CORPORATE GOVERNANCE STATEMENT
4.1. Management board
4.1.1. Appointment and composition
4.1.2. Responsibilities and operation
4.1.3. Remuneration of the management
4.1.4. System of internal control and risk management relating to financial
reporting, auditing
4.2. Supervisory board
4.2.1. Appointment and composition
4.2.2. Powers and operation
4.2.3. Remuneration of supervisory board and supervisory board committees' members
4.3. Shareholders meeting
4.4. Statement of compliance with the Corporate Governance Code
4.5. Compliance with the recommendations and expectations of Slovenian Sovereign Holding
4.6. Management of the Parent Company and the Group
5. PRESENTATION OF THE COMPANY
5.1. Company identity card
5.2. Mission, vision and business culture of the company
5.2.1. Mission of the company
5.2.2. Vision of the company
5.2.3. Business culture
5.3. Regulatory frameworks of the electricity activity of the company
5.4. Company organization
6. HUMAN RESOURCES MANAGEMENT IN YEAR 2014
6.1. General
6.2. Overview of key data about employees in year 2014
6.3. Age structure of employees
6.4. Structure of employees according to the years of service
6.5. Structure of employees according to gender
6.6. Educational structure of employees
6.7. Employees with disabilities
6.8. Education of employees
6.9. Care for employees
6.10. Health and safety at work
6.11. Voluntary supplementary pension insurance
6.12. Accident insurance
6.13. Secondary activities affecting the well-being of employees
7. IMPLEMENTATION OF ANNUAL OBJECTIVES IN YEAR 2014
8. DISTRIBUTION OF ELECTRICITY
8.1. Services for SODO
8.1.1. Achieving the goals and comparison with year 2013
8.2. Investments
8.2.1. Achieving the goals and comparison with year 2013
8.3. Acquired and transmitted electricity in year 2014
8.4. Access to the distribution network
8.4.1. Use of electricity network
8.4.2. Excessively acquired wattles power at cos ϕ < 0,95
8.4.3. Electricity losses in the distribution network
8.4.4. Peak of distribution network consumption and operating hours
8.4.5. Production of electricity from producers connected to the distribution network
8.4.6. Quality of electricity supply
8.4.6.1. Voltage quality
8.4.6.2. Continuity of power supply
8.4.6.3. Commercial quality
9. SERVICES FOR EXTERNAL CUSTOMERS
10. INFORMATION SUPPORT AND DEVELOPMENT
11. INTEGRATED MANAGEMENT SYSTEM
12. CARE FOR THE ENVIRONMENT
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12.1. Environmental policy 52
12.2. Realization of environmental programs in year 2014 52
13. RISK MANAGEMENT 52
13.1. Financial risks 53
13.2. Operational risks 53
13.3. Strategic risks 54
13.4. Legislative risks 54
B. FINANCIAL STATEMENTS 56
1. BALANCE SHEET AS AT DECEMBER 31 2014 56
2. PROFIT AND LOSS ACCOUNT FOR YEAR ENDED AS AT DECEMBER 31 2014 58
3. STATEMENT OF COMPREHENSIVE INCOME FOR YEAR ENDED AS AT DECEMBER 31 2014
4. CASH FLOW STATEMENT FOR YEAR ENDED AS AT DECEMBER 31 2014 60
5. STATEMENT OF CHANGES IN EQUITY FOR YEAR ENDED AS AT DECEMBER 31 2014 61
6. STATEMENT OF CHANGES IN EQUITY FOR YEAR ENDED AS AT DECEMBER 31 2013 62
7. INDICATORS 63
7.1. Main indicators of financing (investing) 63
7.2. Main investment indicators (investing) 63
7.3. Main horizontal financial structure indicators 64
7.4. Main indicators of economy 64
7.5. Main indicators of return 64
C. NOTES TO THE FINANCIAL STATEMENTS ACCORDING TO THE COMPANIES ACT
AND SLOVENIAN ACCOUNTING STANDARDS
1. BASIS FOR PREPARATION OF FINANCIAL STATEMENTS 65
2. NOTES TO THE BALANCE SHEET ITEMS 69
2.1. Intangible assets 69
2.2. Tangible fixed assets 71
2.3. Long-term financial investments 74
2.4. Long-term operating receivables 75
2.5. Stocks 75
2.6. Short-term financial investments 76
2.7. Short-term operating receivables 77
2.8. Monetary assets 79
2.9. Short-term accruals and prepaid expenditure 79
2.10. Capital 80
2.11. Provisions and long-term accruals and deferred income 81
2.11.1. Provisions 81
2.11.2. Long-term accruals and deferred income 81
2.12. Long-term liabilities 82
2.13. Short-term liabilities 83
2.14. Short-term accrued costs and deferred revenues 83
3. NOTES TO THE PROFIT AND LOSS ACCOUNT 85
3.1. Operating revenues 86
3.2. Operating expenses 87
3.3. Financial revenue 90
3.4. Financial expenses 91
3.5. Other revenue 91
3.6. Other expenses 91
3.7. Corporate income tax 92
3.8. Net profit or loss 92
3.9. Total comprehensive income for the period 92
4. NOTES TO THE CASH FLOW STATEMENT 93
4.1. Receipts from operating activities 93
4.2. Expenditure for operating activities 93
4.3. Receipts from investing activities 93
4.4. Expenditure for investing activities 93
4.5. Receipts from financing activities 93
4.6. Expenditure for financing activities 93
4.7. Cash flow for the period 93
5. DISCLOSURE OF EVENTS WITH RELATED PARTIES 94
6. CONTINGENT LIABILITIES OF THE COMPANY 95
7. EVENTS AFTER THE BALANCE SHEET DATE 95
8. NOTES TO THE FINANCIAL STATEMENTS ACCORDING TO ENERGY ACT
AND THE COMPANIES ACT
8.1. Notes to the balance sheet
8.2. Notes to the profit and loss account
8.3. Criteria for allocating revenues and expenses, assets and liabilities of joint activities
to individual activities
8.4. Sub-balance sheet according to the Energy Act as at 31. 12. 2014
8.5. Profit or loss account according to the energy act for year 2014 101
D. BUSINESS REPORT OF ELEKTRO PRIMORSKA GROUP
1. PRESENTATION OF THE GROUP
1.1. Composition of the group
1.2. Presentation of controlled company E 3, d. o. o.
1.3. Presentation of associate company Knešca, d. o. o.
1.4. Presentation of the controlling company JOD, d. o. o.
1.5. Presentation of the controlling company ECO ATMINVEST, d. o. o.
2. RISK MANAGEMENT
3. CONSOLIDATED FINANCIAL STATEMENTS
3.1. Consolidated balance sheet as at December 31 2014
3.2. Consolidated profit or loss account for business year ended as at December 31 2014
3.3. Consolidated statement of comprehensive income for year ended as at
December 31 2014
3.4. Consolidated cash flow statement for year ended as at December 31 2014
3.5. Consolidated statement of changes in equity for year ended as at December 31 2014
3.6. Indicators in Elektro Primorska Group
4. FINANCIAL REPORT OF ELEKTRO PRIMORSKA GROUP
4.1. General notes and disclosures
4.2. Notes to the consolidated balance sheet
4.2.1. Long-term assets
4.2.1.1. Intangible assets
4.2.1.2. Tangible fixed assets
4.2.2. Long-term financial investments
4.2.3. Long-term operating receivables
4.2.4. Deferred tax assets
4.2.5. Short-term assets
4.2.5.1. Stocks
4.2.5.2. Short-term financial investments
4.2.5.3. Short-term operating receivables
4.2.5.4. Monetary assets
4.2.6. Accruals and prepaid expenditure
4.2.7. Capital
4.2.8. Provisions and long-term accruals and deferred income
4.2.8.1. Provisions
4.2.8.2. Long-term accruals and deferred income
4.2.9. Long-term liabilities
4.2.10. Short-term liabilities
4.2.11. Accrued expenses and deferred revenues
4.3. Notes to the consolidated profit or loss account
4.3.1. Operating revenues
4.3.2. Operating expenses
4.3.3. Financial revenue
4.3.4. Financial expenses
4.3.5. Other revenues
4.3.6. Other expenses
4.3.7. Corporate income tax
4.3.8. Net profit or loss
4.4. Notes to the consolidated cash flow statement
4.5. Contingent liabilities of Elektro Primorska Group
4.6. Events after the balance sheet of Elektro Primorska Group
5. MANAGEMENT RESPONSIBILITY STATEMENT – GROUP OPERATIONS
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ABusiness Report
Business Report | 1. Management Report Business Report | 1. Management Report A A8 9
Dear shareholders, business partners, and co-workers,
year 2014 was full of events that marked the operations of the group in many ways. At the
very beginning, when we just finished the operations of the previous year, put our sails up
and turned to new goals, we were hit by a natural disaster of an exceptional character. Ice
damage that shook us well at the end of January caused extreme damage on the entire
Slovenian energy infrastructure. Area covered by Elektro Primorska was especially hard
hit. There were more than 350 km of distribution network damaged, which represents
more than four percent of the infrastructure owned by the company.
We started renovating deliberately and energetically. Our first goal was to ensure the
most urgent supply of electricity to all our customers. We installed more than120 aggre-
gates and upgraded certain parts of the damaged network. We reached the goal in
exceptional circumstances, with the help of external partners and international aid, within
less than a month.
Even the rest of the year was devoted almost exclusively to rehabilitation of the damaged
network. Majority of investment funds were intended for the restoration of medium-vol-
tage power lines and construction of the heavy line between Pivka and Postojna, which
increased the reliability of power supply for the town of Postojna. Final rehabilitation of
damage, mainly on the low-voltage network, will be delayed well into year 2015.
Operating results of the parent company are entirely marked with the vents from the be-
ginning of the year. The resulting damage and the implementation of rehabilitation have
had a significant impact on costs and revenues of the company. Increased volume of co-
sts is connected with operation of aggregates, overtime work, hiring the services of exter-
nal contractors and write-off of fixed assets damaged during the glaze storm. Because of
paid insurance claims, we exceeded the planned volume of operating revenues as well.
Despite the extreme conditions, we achieved a positive operating result in the amount of
3.2 mio EUR and even exceeded other core business objectives.
We carried out by more than 13 mio EUR of investments; surpassed planned objectives
in the segment of own services, carried out all necessary maintenance work and at the
same time additionally created a difference in price in the segment of implementing ser-
vices for the market.
In year 2014 we continued with the implementation of measures of the cost rationalizati-
on program (RAST), which is implemented on the level of entire group and will be taking
place until the end of year 2015.
In accordance with the adopted methodology of integrated risk management we imple-
mented measures, which were adopted with the purpose of reducing and controlling the
1.Management Report
risks, and we achieved a radical reduction of risk assessment in the parent company as
well as in the subsidiary E 3, d. o. o.
In accordance with the annual and operative plan of internal audit for year 2014 key
business processes were reviewed and audited in the parent company as well as in the
subsidiary. There were nearly 60 measures issued, of which 60 % have already conclu-
ded, while 40 % are being implemented.
On the electricity market, where one of the key roles are played also by our subsidiary E 3,
d. o. o., the fight for market share among the key players has continued, which expressed
mainly in the form of additional reduction of prices for existing products. Our subsidiary
did not give into the senseless fight of price reductions, but fought the competition by
finding the way to new buyers through introduction of new selling channels. We were
so successful at this, that we recorded another customer growth at the end of the year,
both in the segment of household and business customers. In the last quarter we also
re-launched the sale of electricity in Italy, which was stopped due to reorganization of
the Italian buyer.
Despite positive trend in the last quarter it was impossible to make up for the lost electri-
city quantities, which was the result of customers loss in the first half of the year, excepti-
onally warm winter and mild summer. Weather conditions also impacted the field of heat
and electricity production, where we recorded worse result than planned.
In the given circumstances we are pleased with the achieved result of the subsidiary in
the amount of 1.5 mio EUR, despite the fact that planned profit was not realized.
In Elektro Primorska Group we are well aware that in addition to the business success of
the company, attitude toward the environment we operate in is also important, so we pro-
mote the principles of socially responsible behavior in business and social environment.
We also strive for improvement of environmental aspects of operation, for rational beha-
vior and rational use of energy, raw materials and other natural resources.
Year 2014 is behind us. In Elektro Primorska Group we will certainly remember it well. On
this occasion, I would like to thank once again all co-workers, who in the moment of crisis
proved their loyalty and outstanding care for what is the main mission of the company,
namely to ensure undisturbed electricity supply. In this year we all learned a lot and we
did our work as a mission.
Dear shareholders and business partners, together with our co-workers we would like
to thank you for your trust in the past year. We will continue to care for the successful
development of the group and we wish for your support and creative participation while
doing so.
Uroš Blažica,
Chairman of the Board
A A10 11
Uroš Blažica,
Chairman of the Board
Business Report | 1. Management Report Business Report | 1. Management Report
A A12 13
Management board hereby approves the financial statements for year 2014and business
report for the period between January 1 and December 31 2014, as well as used accou-
nting policies and notes included in the proposed annual report.
Management is responsible for preparing the annual report and hereby declares that the
report provides a true and fair picture of the financial condition of the company and its
operating results for year 2014.
Management board hereby certifies that relevant accounting policies were used consis-
tently and that accounting estimates were prepared according to the principles of pru-
dence and due diligence. At the same time it certifies that the financial statements and
notes were prepared on a going concern basis and in accordance with the relevant legi-
slation and Slovene Accounting Standards.
Management board is also responsible for appropriate accounting, for adoption of
appropriate measures to protect the property and prevent and detect fraud and other
irregularities.
In its operation company strictly abides by the laws and tax regulations, so the manage-
ment of the company does not expect any significant obligations in this respect.
In the period from January 1 2014 to December 31 2014 the supervisory board operated
in the following composition:
• mag. Uroš Saksida, chairman of the supervisory board,
• Valter Vodopivec, vice-president of the supervisory board, employee representative,
• Dean Kocjančič, supervisory board member,
• Massimo Makovac, supervisory board member,
• Matjaž Bajec, supervisory board member,
• Jernej Kenda, supervisory board member, employee representative.
Composition of the supervisory board is varied. Members possess relevant expertise,
experience and skills. With their knowledge and experience they complement each other,
which ensure adequate control over the operations of the company.
Members of the supervisory board in the management or supervisory bodies of related
and unrelated companies are:
• mag. Uroš Saksida – director of Stem, d. o. o. Company, Vipavska 67, 5000 Nova
Gorica,
• Valter Vodopivec – member of the supervisory board in company Mestne storitve,
javno podjetje, d. o. o., Trg Edvarda Kardelja 1, 5000 Nova Gorica,
• Dean Kocjančič – director of Tourist association Izola, g. i. z., Ljubljanska ulica 17,
6310 Izola,
• Massimo Makovac, who is not a member in any of the management or supervisory
bodies of related or unrelated companies,
• Matjaž Bajec – director of company Mlina, družba za upravljanje z naložbami,
d. o. o., Tovarniška cesta 14, 5270 Ajdovščina,
• Jernej Kenda, who is not a member in any of the management or supervisory bod-
ies of related or unrelated companies.
In year 2014 the supervisory board carefully and responsibly supervised the operation of
the company and group Elektro Primorska. Supervisory Board has carried out its work
in accordance with the law, the statute of the company, Rules of Procedure of the Su-
pervisory Board, the Code of Corporate Governance of State Capital Investments and
recommendations of the operator of direct and indirect equity investments of the Re-
public of Slovenia. Operation and supervision of the content related to the monitoring of
achievement of business objectives and long-term business and financial development
of the company and the Group. Management Board regularly, correctly and thoroughly
reported to the Supervisory Board on the operating results, on the broad terms of busi-
ness and significant events in the company and the group. Supervisory board believes
that cooperation with the Management Board held a professional and appropriate pro-
fessional level.
2.Management Responsibility Statement
3.Supervisory Board Report
Composition of the Supervisory Board
Operation of the Supervisory Board
Business Report | 2. Management Responsibility Statement Business Report | 3. Supervisory Board Report
Business Report | 3. Supervisory Board Report Business Report | 3. Supervisory Board ReportA A14 15
In year 2014 Supervisory Board met at nine regular and three correspondence sessions,
where it adopted a total of 82 decisions and dealt with the following major contents:
5th regular session, February 4 2014
• familiarization with the situation on the electricity distribution network owned by the
company after the ice damage,
• consideration of the report on the operations of the group for the period January–
November 2013,
• consideration of the report on liquidity situation of the group,
• approval of estimated sources of financing investments and long-term indebted-
ness of Elektro Primorska d. d. Company for year 2014,
• adoption of the annual internal audit plan for year 2014,
• consideration of RAST program,
• familiarization with the report of the audit committee of the supervisory board.
6th regular session, March 27 2014
• consideration of the report on the operations of the group for the period January
-December 2013,
• familiarization with the interim report on the damage and the rehabilitation of distri-
bution network owned by the company after the ice damage,
• consideration of the report on liquidity situation of the group,
• approval of the supervisory board of the contracts for real estate sales,
• consideration of the report on the integrated risk management of the group for the
last quarter of year 2013,
• consideration of the report on the integrated risk management of the group for year
2013,
• consideration of the report on internal audit of the group for the last quarter of year
2013,
• consideration of the report on internal audit of the group for year 2013,
• familiarization with the time schedule of implementation of the 19th shareholders
meeting of Elektro Primorska d. d. Company,
• familiarization with the report of the audit committee of the supervisory board,
• requirement to complete an annual internal audit plan for year 2014.
7th regular session, May 8 2014
• consideration of the report on the operations of the group for the period January–
February 2014,
• consideration of the evaluation of the group operations for the period January–April
2014,
• consideration of the report on liquidity situation of the group,
• familiarization with the guidelines of the revised plan of investments for year 2014,
• consent to the commencement of the procedure of borrowing in Elektro Primorska
d. d. Company for the purpose of refinancing the existing loans,
• adoption of the amended annual internal audit plan for year 2014,
• consideration of the draft annual report of the Supervisory Board for year 2013.
8th regular session, May 21 2014
• consideration and approval of the revised annual report of the company and group
for year 2013,
• drafting a proposal for allocation of distributable profit,
• consideration and approval of the annual report of the supervisory board of the
company for year 2013,
• consideration and approval of materials and decision proposals for the 19th share-
holders meeting of Elektro Primorska d. d. Company.
1st correspondence session, June 4 2014–June 6 2014
• consideration and approval of Annex no.2 to the employment contract of the chair-
man of the board.
9th regular session, July 10 2014
• consideration of the report on the operations of the group for the period January–
May 2014,
• consideration of the evaluation of the group operations for the period January–De-
cember 2014,
• consideration of the report on liquidity situation of the group,
• consideration of the report on the integrated risk management of the group for the
first quarter of year 2014,
• consideration of the report on internal audit of the group for the first quarter of year
2014,
• familiarization with the decision on the refusal of a public contract for the supply of
direct electricity meters,
• familiarization with the procedure and costs of introduction of new ERP system.
2nd correspondence session, August 25 2014–August 26 2014
• consent to the conclusion of the transaction to hire long-term loan to refinance ex-
isting long-term indebtedness.
10th regular session, September 11 2014
• consideration of the report on the operations of the group for the period January–
June 2014,
• consideration of the report on liquidity situation of the group,
• familiarization with the conclusion of the Annex no.3 to the Contract on the lease
of electricity distribution infrastructure and provision of services for the distribution
system operator,
• consideration of comparative analysis of selected indicators of electricity distribu-
tion companies in the period 2011–2013,
• consideration of comparative analysis of selected indicators of energy trading sub-
sidiary companies in the period 2011–2013,
• consent to the conclusion of a contract for the lease of the new ERP system,
• consideration of the report on the integrated risk management of the group for the
second quarter of year 2014,
• consideration of the report on internal audit of the group for the second quarter of
year 2014,
• familiarization with the report of the audit committee of the supervisory board,
A A16 17
• adoption of amendments to the Rules of Procedure of the Audit Committee of the
Supervisory Board of Elektro Primorska d. d. Company and confirmation of a clean
copy of the Rules of Procedure.
11th regular session, October 22 2014
• consideration of the report on the operations of the group for the period January
–August 2014,
• consideration of the report on liquidity situation of the group,
• adoption of the revised plan of investments for year 2014 (version No. 3),
• familiarization with the impact of ice damage on company's operation in year 2014,
• discussion and conclusion on the fulfillment of the criteria for the payment of bonus-
es to the chairman of the board for year 2013.
12th regular session, December 4 2014
• consideration of the report on the operations of the group for the period January
–September 2014,
• consideration of the report on liquidity situation of the group,
• consideration of the draft of the Business plan of Elektro Primorska d. d. for the
period 2015–2017.
13th regular session, December 16 2014
• consideration of the draft of the Business plan of Elektro Primorska d. d. for the
period 2015–2017,
• consideration of the report on the integrated risk management of the group for the
third quarter of year 2014,
• consideration of the report on internal audit of the group for the third quarter of year
2014,
• familiarization with the report of the audit committee of the supervisory board,
• adoption of a plan of work of the audit committee of the supervisory board of Elektro
Primorska d. d. for year 2015,
• consideration and approval of the proposal for additional criteria for the selection of
the contractor to revise the annual report.
3rd correspondence session, December 22 2014–December 23 2014
• consideration and approval of the Business plan of Elektro Primorska d. d. for the
2015–2017,
• confirmation of the forecast sources of financing investments and long-term indebt-
edness of the company for period 2015–2017.
At all meetings members of the Supervisory Board met in full cast.
Supervisory Board had no expenses for its operation, except for costs linked to the deci-
sion of the general meeting on the payments for performing the function. Remuneration
of the supervisory board members is disclosed in table no. 54 of the annual report.
Professional support to the supervisory board in exercising control over the management
of the company was offered also by the audit committee of the supervisory board. Re-
view of business and legal transactions of the company in 2014 were monitored by the
following members of the audit committee:
• Dean Kocjančič, chairman of the audit committee,
• Massimo Makovac, internal member of the audit committee,
• Maja Curk, external member of the audit committee, and
• Aleš Jakin, external member of the audit committee.
In year 2014 the audit committee met at four regular and one correspondence session,
where members paid special attention primarily to the following topics: liquidity, compre-
hensive risk management, effectiveness of internal controls, reviewing the correctness of
the implementation of procurement procedures, external audit.
1st correspondence session, January 17 2014–January 24 2014
• consideration of the annual internal audit plan for year 2014.
3rd regular session, February 20 2014
• consideration of the report on the operations of the group for the period January–
November 2013,
• analysis of the performance of subsidiary E 3, d. o. o., and related companies,
• consideration of the report on liquidity situation of the group,
• familiarization with the process of recovery in the parent company and subsidiary
company E 3, d. o. o.
4th regular session, May 14 2014
• consideration of the proposal of selecting the audit of the annual report for year
2014,
• consideration of the revised annual report of the company Elektro Primorska d. d.
and group for year 2013,
• consideration of the report on the operations of the group for the period January
–March 2014,
• consideration of the report on liquidity situation of the group,
• consideration of the report on the integrated risk management of the group for the
last quarter of year 2013,
• consideration of the annual report on the integrated risk management of the group
for year 2013,
• consideration of the report on internal audit of the group for the last quarter of year
2013,
• consideration of the annual report on internal audit of the group for year 2013,
• self-assessment of the audit committee of the supervisory board.
5th regular session, September 2 2014
• consideration of content of the contract on auditing the individual and consolidated
financial statements for year 2014,
• consideration of the report on the operations of the group for the period January
–June 2014,
Work of the supervisory board committees
Business Report | 3. Supervisory Board Report Business Report | 3. Supervisory Board Report
A A18 19
Based on the review of the annual report and the accompanying auditor's report, the
Supervisory Board established that the Annual Report is prepared in accordance with
the provisions of the Companies Act and in accordance with accounting standards and
that the information contained therein constitute a faithful reflection of the company's
operations in the previous financial year.
On the basis of the foregoing considerations and the positive opinion issued by the cer-
tified auditing company, the Supervisory Board, without comment approved the Annual
Report of the company Elektro Primorska d. d. and of Elektro Primorska Group for 2014.
With this the Annual report of Elektro Primorska d. d. Company and of Elektro Primorska
Group for 2014 is adopted.
In year 2014 Elektro Primorska d. d. Company made net profit in the amount of 2,813,603
EUR. Following the decision of the management, the company has formed other profit
reserves in the amount of 47.36 % of net profit for year 2014 already in compiling the
annual report. Company notes that the distributable profit as at 31. 12. 2014 amounted to
1,481,000 EUR and consists of the net profit from year 2014 in the amount of 1,481,000
EUR.
Management Board proposes that the entire distributable profit in the amount of
1,481,000 EUR is paid to shareholders in the form of dividends.
Supervisory Board believes that the Management Board's proposal on the use of dis-
tributable profit is in line with the strategic development goals of the company and takes
into account the interest of the shareholders for the long-term increase in share value,
and therefore supports the Management Board proposal on profit distribution and will
forward it together with the Management Board to the General Meeting of Shareholders.
Nova Gorica, May 25 2015
Uroš Saksida, MSc
Chairman of the Supervisory Board
• consideration of the operational assessment of the group for the period January–
December 2014,
• consideration of the report on liquidity situation of the group,
• consideration of comparative analysis of selected indicators of electricity distribu-
tion companies in the period 2011–2013,
• familiarization with the presentation of Eco Atminvest, d. o. o. Company,
• consideration of the report on the integrated risk management of the group for the
first and second quarter of year 2014,
• consideration of the report on internal audit of the group for the first and second
quarter of year 2014,
• consideration of the proposal of amendments to the Rules of Procedure of the Audit
Committee of the Supervisory Board.
6th regular session, December 10 2014
• consideration of the proposal of additional criteria for selecting the audit of the an-
nual report,
• consideration of the report on the operations of the group for the period January
–September 2014,
• consideration of the report on liquidity situation of the group,
• consideration of comparative analysis of selected indicators of energy trading sub-
sidiary companies in the period 2011–2013,
• familiarization with the operations of Eco Atminvest, d. o. o. Company, and forming
of opinion about the planned merger with E 3, d. o. o. Company,
• consideration of the report on the integrated risk management of the group for the
third quarter of year 2014,
• consideration of the report on internal audit of the group for the third quarter of year
2014,
• consideration of the annual report on internal audit for year 2015,
• consideration of the work plan of the supervisory board audit committee for year
2015.
Members of the audit committee met in full composition, except at the 4th regular ses-
sion, when Ms. Maja Curk, external member of the audit committee, was justifiably ab-
sent.
Audit Committee had no expenses for its operation, except for costs linked to the deci-
sion of the general meeting on the payments for performing the function. Remuneration
of the audit committee members is disclosed in table no. 54 of the annual report.
Approval of the annual report and position on the auditor's report
At its 17th regular session on May 25 2015 the supervisory board considered the annual
report of Elektro Primorska d. d. Company and Elektro Primorska Group for year 2014,
including the report by the audit company ABC Revizija, družba za revizijo in sorodne
storitve, d. o. o., in which the authorized auditing firm notes that the financial statements
that are part of the annual report give a true and fair view of the financial situation of the
Company and the Group and their income, changes in equity and cash flow statements.
Supervisory board had no comments to the auditor's report.
Approval of the annual report and position on the auditor's report
Business Report | 3. Supervisory Board Report Business Report | 3. Supervisory Board Report
Business Report | 4. Corporate Governance Statement Business Report | 4. Corporate Governance StatementA A20 21
Supervisory Board's consent is not required when it comes to business in the field of
buying and selling electricity, legal transactions with real estate and borrowing and len-
ding, insofar as these legal transactions are included in the Company's business plan.
Chairman of the Board reports regularly to the Supervisory Board about its work and
informs it about all significant business events. Chairman of the management board and
Chairman of the Supervisory Board consult on the strategy and business development
also outside the meetings of the Supervisory Board.
4.1.3. Remuneration of the management
In accordance with the employment contract the Chairman of the Board shall be entitled
to the basic monthly salary and performance bonus. Basic salary (gross pay, undimini-
shed by taxes and contributions) is set as a multiple of average gross wage paid in a
group of Elektro Primorska in the previous financial year. Bonus for performance is de-
termined in accordance with the criteria set out in the employment contract by a decision
of the Supervisory Board within 30 days after the adoption of the annual report for the
financial year for which the bonus is calculated. Bonus can amount a maximum of 15% of
the basic monthly salaries paid to the chairman of the board in the financial year and shall
be paid only in the event that the company's planned profit was exceeded.
In accordance with the employment contract the Chairman of the Board is also entitled to
an annual preventive medical examination, life and accident insurance, use of company
car for business and private purposes, and payment of education expenses.
4.1.4. System of internal control and risk management relating to financial
reporting, auditing
For the effective functioning of the management system of the company it is crucial
to ensure reliability of financial reporting. Internal controls include all procedures and
measures that the company implemented in order to manage risk and to ensure the
preparation of financial statements that present a true and fair view of the financial posi-
tion, income statement, cash flows and changes in equity in accordance with accounting
standards and applicable regulations.
Internal audit activity in the company and the group is carried out in accordance with the
Regulations on Internal Audit in Elektro Primorska d. d. Basic function of internal audit is
constantly checking and making recommendations for improvements in the functioning
of the internal control system in terms of managing all types of risk. In accordance with
the annual internal audit plan, which was approved by the Supervisory Board, in 2014 the
parent company conducted an internal audit in the following areas of process implemen-
tation: a) informatics in Elektro Primorska Company b) investments and maintenance of
infrastructure in Elektro Primorska c) process of recovery.
Audit of the financial statements of the parent company and subsidiaries is carried out
by the audit company ABC Revizija, d. o. o., Ljubljana. Within the audit of financial sta-
tements the external auditor cooperates with the internal audit. External and Internal Au-
ditors report to the Management Board, Supervisory Board and Audit Committee of the
Supervisory Board on their findings.
4.2. Supervisory board4.2.1. Appointment and composition
Supervisory board in Elektro Primorska Company has six members. Four members are
representatives of shareholders, two representatives of workers. Members of the super-
visory board representing the shareholders are elected by the general meeting, while
representatives of workers by the works council in accordance with the law and its acts.
Term of office of the members of the Supervisory Board is four years and they may be
reappointed.
Since August 28 2013 the supervisory board of Elektro Primorska has been operating
in the following composition: Uroš Saksida, MSc, chairman, and Matjaž Bajec, Dean
Kocjančič, Massimo Makovac, Valter Vodopivec and Jernej Kenda, members.
4.2.2. Powers and operation
Powers of the Supervisory Board are defined by law and the statute of the company
Elektro Primorska d. d. In its operations, the Supervisory Board complied with the provi-
sions of the Corporate Governance Code of the Republic of Slovenia, which was based
on the Act Amending the Slovenian Sovereign Holding Act on March 15 2013 adopted
by the Slovenian Restitution Fund, d. d. (SOD), and from December 19 2014 with the
provisions of the Corporate Governance Code for Companies with Capital Assets of the
State, which was in accordance with the provisions of ZSDH-1 adopted by the Slovenian
Sovereign Holding, d. d.
In year 2014 the Supervisory Board met at nine regular and three correspondence sessi-
ons. Based on the responsibilities and powers set by law and the statute of the company,
the Supervisory Board of Elektro Primorska d. d. regularly monitored and supervised the
operations of the parent company and the group Elektro Primorska.
4.1. Management board4.1.1. Appointment and composition
In accordance with the Statute, the Management Board consists of one member. Office
of the chairman of the Management Board lasts four years and he may be reappointed.
Since June 30 2012 the chairman of the board has been Uroš Blažica.
4.1.2. Responsibilities and operation
Chairman of the Board manages the business of the company to the benefit of the com-
pany, independently and on his own responsibility. In accordance with the Statute of the
company the chairman of the board must obtain the consent of the Supervisory Board
prior to the conclusion of a legal transaction of over 835,000.00 EUR, for transactions on
real estate and borrowing of more than 418,000.00 EUR.
4.Corporate Governance Statement
A A22 23
Supervisory Board has formed a four-member Audit Committee, which in 2014 consisted
of: Dean Kocjančič, chairman, Massimo Makovac, internal member, and Maja Curk and
Aleš Jakin, external members.
Supervisory Board has not formed other committees.
4.2.3. Remuneration of supervisory board and supervisory board committees'
members
For performance of their functions and regular work at the meetings members of the
Supervisory Board and members of the Supervisory Board committees are entitled to
payment for performing the function, attendance fees and reimbursement, as determi-
ned by a decision of the general meeting. At the 16th general meeting of the company,
which took place on August 25 2011, the decision was adopted based on which the
members of the supervisory board are entitled to payment for performing the function in
the amount of 11,300 EUR gross per year, to attendance fee in the amount of 275 EUR
gross and to reimbursement of expenses in connection with the performance. Chairman
of the Supervisory Board is entitled to 50% larger payments and attendance fees. For
correspondence sessions of the Supervisory Board, members of the Supervisory Board
are entitled to 80% of the attendance fee.
Members of the supervisory board committees shall receive a fee for performing the
functions, which for each member of the committee amounts to 25% of the basic perfor-
mance fee of the supervisory board member. Chairman of the committee is also entitled
to an additional payment in the amount of 50% additional cost for a member of the
supervisory board committee, while deputy chairman of the committee to payment in
the amount of 10% additional cost for performing the function of a supervisory board
committee member. In accordance with the decision of the supervisory board the exter-
nal members of the committee are entitled to payment for performing the function in the
amount 11,300 EUR gross and attendance fee in the amount of 80 % attendance fee
belonging to the supervisory board members.
4.3. Shareholders meeting Shareholders of Elektro Primorska d. d. exercise their rights arising out of the Compa-
nies Act, at the general meetings of the company. Voting rights may be exercised by
shareholders who have been until the day of the meeting recorded in the central registry
of securities or the share register and have announced their participation at the general
meeting at least three days before the general meeting, about which the shareholders are
specifically warned. Statute of the company does not set any restrictions on voting rights.
In year 2014 the shareholders met at the general meeting, which took place on July 4
2014. Shareholders were familiarized with the annual report for year 2013 and the report
of the supervisory board on the verification of the annual report for business year 2013,
they granted a discharge to the management and supervisory boards, decided on the use
of distributable profit for year 2013 and appointed the company ABC Revizija, družbo za
revizijo in sorodne storitve, d. o. o., Ljubljana, an auditor of Elektro Primorska d. d. Com-
pany for business year 2014.
4.4. Statement of compliance with the Corporate Governance Code In year 2014 Elektro Primorska d.d. Company complied with the provisions of the Corpo-
rate Governance Code of the Republic of Slovenia, which was based on the Act Amen-
ding the Slovenian Sovereign Holding Act on March 15 2013 adopted by the Slovenian
Restitution Fund, d. d. (SOD). From December 19 2014 the company has complied with
the provisions of the Corporate Governance Code for Companies with Capital Assets
of the State, hereafter: Code, which was in accordance with the provisions of ZSDH-1
adopted by the Slovenian Sovereign Holding, d. d. Code is published on the website:
http://www.sdh.si/sl-si/upravljanje-nalozb/kodeks-upravljanja-kapitalskih-nalozb-
republike-slovenije
4.5. Compliance with the recommendations and expectations of Slovenian Sovereign Holding Elektro Primorska d. d. Company meets the recommendations and expectations of Slo-
venian Sovereign Holding with the smaller exception of recommendations and expecta-
tions that have been newly adopted in December 2014 and the company will strive to
implement in 2015.
4.6. Management of the Parent Company and the Group In Elektro Primorska d. d. a two-tier management system has been established. Appo-
intment of members of the management board and the supervisory board is conducted
in accordance with applicable law and with the recommended standards in the field of
management.
Elektro Primorska Group consists of Elektro Primorska d. d. as the parent company,
company E 3, energetika, ekologija, ekonomija, d. o. o. (owned by Elektro Primorska d.
d.), company JOD, d. o. o. ( 100 % owned by E 3, d. o. o.) and company ECO ATMIN-
VEST, d. o. o. (100 % owned by E 3, d. o. o., since December 2013) as subsidiaries,
and company Knešca, d. o. o., as associate company (47.27 % owned by JOD, d. o. o.
Company).
For better connections and control over the operations of the subsidiary, management
of the parent company represents the general meeting of the subsidiary E 3, energetika,
ekologija, ekonomija, d. o. o. Control of subsidiary's operation takes place on the basis
of regular reporting and approving of transactions in accordance with the provisions of
the Act of Incorporation of the company E 3, d. o. o.
Business Report | 4. Corporate Governance Statement Business Report | 4. Corporate Governance Statement
A A24 25
5.1. Company identity card
5.Presentation Of The Company
Name: Elektro Primorska, podjetje za distribucijo električne energije, d. d.
Abbreviated name: Elektro Primorska d. d.
Business address: Erjavčeva ulica 22, 5000 Nova Gorica
Phone: 05 339 67 00
Fax: 05 339 67 05
VAT identification number: 37102656
Registration number: 5229839
Transaction accounts numbers: 04750 0000510950 Nova KBM, d. d.
02241 0019980250 Ljubljanska banka, d. d.
03130 1000002961 SKB banka, d. d.
06000 0039424688 Banka Celje, d. d.
Company is registered in the Companies Register at the District Court in Nova Gorica under number 1/01335/00.
Share capital of the company: 78,562,831.75 EUR
Ownership as of 31. 12. 2014: 79.5000 % Republic of Slovenia
2.7631 % Skladi kapitalskih družb
14.4203 % PID (Authorized Investment Companies), funds, business entities
3.3166 % Employees, retired employees, other
Supply area: SW, W, NW part of Slovenia
Size of the supply area: 4,335 km2
Number of customers: 131,408
Amount of transferred electricity: 1,445 GWh
Supervisory board: http://www.elektro-primorska.si
E-mail address: [email protected]
Management: Uroš Blažica, chairman of the board
Supervisory board: mag. Uroš Saksida, chairman of the supervisory board
Dean Kocjančič, member
Massimo Makovac, member
Matjaž Bajec, member
Valter Vodopivec, member
Jernej Kenda, member
5.2. Mission, vision and business culture of the company
5.2.1. Mission of the company
Fundamental mission of Elektro Primorska d. d. Company is ensuring quality and reliable
electricity supply in an environmentally friendly and safe way, in accordance with the laws
and regulations. Mission of the company is also care for development and construction of
electricity network in accordance with the needs of business and household customers.
With professional and efficient operation we want to meet the expectations of owners
and other stakeholders. It relates to the mission and vision of SODO, d. o. o. Company,
which are published on the following website (http://www.sodo.si/druzba_sodo/vizija):
5.2.2. Vision of the company
Our vision is to create business environment which enables creation of new solutions and
development of infrastructure, sale and new projects by understanding the wishes of our
users, and by acting responsibly towards environment and employees.
Companies of Elektro Primorska Group will be companies of high business excellence in
relation to our customers, employees, business partners, shareholders and other busi-
ness environment. Its companies will continue to be socially responsible, will demon-
strate high business culture and excellence of operation. They will be introducing friendly
and innovative services and solutions for customers, buyers and other users of their
services. They will achieve all this effectively through quality services and by minimizing
operating costs. Companies will be flexibly organized, which will enable them to adapt
originally to changes in business environment.
5.2.3. Business culture
Past experience and foreign experience confirm that for the successful operation of the
company a good business culture is also needed. With constant development of inte-
grated management system in accordance with ISO 9001 standard, with a responsible
attitude towards the environments in accordance with the ISO 14001 standard, health
and safety at work management system in accordance with BS OHSAS 18001 standard,
which we verify by regular internal and external audits, and with acquisition of Family
Friendly Company certificate we prove that we cultivate good business culture and es-
tablish social responsibility as business strategy of the company.
5.3. Regulatory frameworks of the electricity activity of the company
Important legal, statutory and contractual regulations governing the electricity business
of the company are:
»Our mission is to care for the long-term, reliable, quality and efficient supply of electricity distribution network users. We wish to connect with the customer and become recognizable in our field as a friendly company with responsible environmental management.«
Business Report | 5. Presentation Of The Company Business Report | 5. Presentation Of The Company
A A26 27
Energy Act (EZ-1), which entered into force on March 22 2014, is an organic law, which
fully transfers the European legislation in the field of the energy market, energy efficiency
and renewable energy sources into the Slovenian legislation, and increases the trans-
parency of legal arrangements in this field as well as complies with the decision of the
Constitutional Court of the Republic of Slovenia as at April 14 2011.
Energy Act lays down:
• principles of energy policy,
• rules for the operation of the market of electricity and natural gas,
• transport of carbon dioxide through the pipe transmission networks,
• resolving consumer complaints,
• methods and forms of utilities implementation in the energy sector,
• principles of reliable supply and efficient use of energy,
• promoting the use of energy from renewable energy sources,
• requirements for the eco-design of products related to energy,
• an indication of the consumption of energy and other resources of these products
with the energy label and product information sheets,
• conditions for the operation of energy plants,
• conditions for carrying out energy activities,
• issuing licenses and energy permits,
• competence, organization and functioning of the Energy Agency and the powers of
other bodies performing tasks under this Act.
Energy Act provides:
• conditions for the safe and reliable supply of users with energy services accord-
ing to market principles, principles of sustainable development, taking into account
efficiency, rational utilization of renewable energies and environmental protection
conditions;
• competitiveness in the energy market by the principles of impartiality and transpar-
ency, taking into account consumer protection and enforcement of effective control
of the energy supply.
Decree on the method of provision of an electricity DSO service of general econom-
ic interest and a service of general economic interest of electricity supply to tariff
customers regulates the manner of implementation of the mandatory utilities activity of
system operator of the electricity distribution network (hereafter: system operator activ-
ity) and the mandatory utilities activity of electricity supply to tariff customers (hereafter:
supply to tariff customers), but above all it regulates:
• rights and obligations of public service,
• organizational and spatial design to provide these public services,
• manner and conditions of providing services, which compose the public service,
• rights and obligations of users,
• method of financing the public service.
General Conditions for connection to the distribution Electric system
They were published by SODO, d. o. o., Maribor, on the basis of the fourth paragraph
of Article 70 of the Energy Act (Official Gazette of the Republic of Slovenia, No. 27/07 –
official consolidated text) and Decree on the concession of an electricity DSO service of
general economic interest (Official Gazette of the Republic of Slovenia, No. 39/07) and
after obtaining the consent of the Government of the Republic of Slovenia, which was
issued by order No. 36001-8/2007/4 as at December 27 2007 after a prior opinion from
the Public Agency of the Republic of Slovenia for Energy as at November 13 2007.
General terms and conditions for the supply and consumption of electricity from the
electricity distribution network define:
• relations between SODO and consumers,
• connection to the electricity distribution network (hereinafter: network),
• consumption and delivery of electricity,
• measuring device and measurement of electricity,
• billing, method of charging and billing for the use of networks,
• relations between SODO and electricity suppliers,
• relations between customers and electricity suppliers,
• records of measuring points,
• quality of services of the system operator of the electricity distribution network.
Rules on the system operation of electricity distribution network
They were published by SODO, electricity distribution system operator, d. o. o., Maribor,
on the basis of the fourth paragraph of Article 40 of the Energy Act (Official Gazette of the
Republic of Slovenia, No. 27/07 – official consolidated text, 70/08, and 22/10) and Article
8 of the Decree on the concession of an electricity DSO service of general economic
interest (Official Gazette of the Republic of Slovenia, No. 39/07) and after obtaining the
consent of the Government of the Republic of Slovenia, which was issued by order No.
36001-3/2011/3 as at April 21 2011 and after a prior consent from the Public Agency of
the Republic of Slovenia for Energy No. 535-11/2009-3/EE-06 as at November 9 2009.
System operating instructions for the electricity distribution network provide for a system
of operation of the electricity distribution network, defining the distribution services of
electricity through distribution network, the method of providing system services on the
distribution network, operation and development of the distribution network, and techni-
cal conditions for connection to the distribution network.
Contract on electricity infrastructure lease and provision of services for electricity
distribution system operator
In June 2007 Elektro Primorska d. d. for the first time concluded the contract with SODO
Company from Maribor, which is, as already mentioned, the exclusive holder of the con-
cession for the distribution network system operator in Slovenia. On the basis of this
contract Elektro Primorska d. d. continues to perform most of the activities related to
the implementation of the activities of the distribution network system operator, which it
already carried out until July 1 2007. These activities (services) are:
• maintenance of electricity infrastructure and organizing emergency services,
• management and operation of the electricity distribution network,
• development, planning and investment in electricity infrastructure,
• preparation and management of investments,
• monitoring and assessing the quality of supply,
• electricity metering,
• provision of services of access to the distribution network and other services to
users.
Business Report | 5. Presentation Of The Company Business Report | 5. Presentation Of The Company
A A28 29
Since July 1 2007 the company Elektro Primorska d. d. no longer generates revenue from
charges for the use of the network (network charge), because it is a revenue of the con-
cessionaire, but revenue from rentals for the electricity infrastructure and revenue for the
implementation of the above mentioned services to SODO from Maribor.
On October 29 2012 the Official Gazette of RS No. 81/2012 published Act determining
the methodology for charging for the network charge, the methodology for setting the
network charge, and the criteria for establishing eligible costs for electricity networks
with Annex 1: Implementation criteria and parameters for determining network charges
for electricity network and identifying the eligible costs for the regulatory period 1. 1.
2013–31. 12. 2015.
Act determining the methodology for charging for the network charge, the metho-
dology for setting the network charge, and the criteria for establishing eligible costs
for electricity networks. This act issued by the Energy Agency, defines:
• the methodology for setting the network charge and the criteria for establishing
eligible costs for electricity networks, separately for transmission and distribution
network;
• methodology for charging for the network charge separately for transmission and
distribution network;
• methodology for charging for the network charge for customers that buy electricity
from production facilities of renewable energy sources and high-efficiency co-gen-
eration to the nominal power of 10 MW, for which they obtained the certificate of
origin and which producers sell independently in the electricity market to end cus-
tomers connected to the same distribution network;
• duration of the regulatory period, implementation criteria and parameters for setting
the network charge and to determine the eligible costs of the regulatory period.
On October 29 2012 the Official Gazette of RS No. 81/2012 published Act determining
the methodology for charging for the network charge, the methodology for setting the
network charge, and the criteria for establishing eligible costs for electricity networks
with Annex 1: Implementation criteria and parameters for determining network charges
for electricity network and identifying the eligible costs for the regulatory period 1. 1.
2013–31. 12. 2015. On December 16 2013 the Council of Energy Agency adopted the
Act amending the Act determining the methodology for charging for the network charge,
the methodology for setting the network charge, and the criteria for establishing eligible
costs for electricity networks. Act applies from January 1 2014 and in certain items is
retroactive.
5.4. Company organization
In accordance with the Rules on the internal organization of Elektro Primorska d. d. Com-
pany, which entered into force on January 1 2013, the activity of the company is carried
out in the following organizational units:
Sectors:
• sector for distribution system management (DEES)
• sector for distribution network (SDO)
• general sector (SS) and
• finance and accounting sector (FRS).
Special services of the management:
• service of information and communication technologies (IKT) and
• service for purchase and procurement (SNJN).
Regional distribution units:
• Distribution unit Nova Gorica (DU Nova Gorica )
• Distribution unit Koper (DU Koper)
• Distribution unit Sežana (DU Sežana) and
• Distribution unit Tolmin (DU Tolmin).
Management board has the chairman of the board office, where there are organized the
secretariat, field of integrated management system, internal audit and risk management.
Business Report | 5. Presentation Of The Company Business Report | 5. Presentation Of The Company
A A30 31
6.Human Resources Management in Year 2014
6.1. General At a time when business conditions are increasingly exacerbating, human resources ma-
nagement requires appropriate balance between measures that enable the company to
influence the reduction of costs directly and measures that ensure motivation of employe-
es for better work and retention of key personnel. That employees are the key factor of
success and undisturbed operation of the company was once again established in year
2014, when nature put us to the test once more. Despite the tough operating conditions
we did not neglect the most important fields, like training and education, creativity and
cooperation between co-workers, which resulted in successful solving of problems and
implementing of the set goals.
6.2. Overview of key data about employees in year 2014As at December 31 2014 there were 477 employees in the company. Average number
of employees for year 2014 was 476 and increased by one employee compared to the
average number in 2013.
6.3. Age structure of employees Average age of employees in the company was 44.89 years and increased by 0.63
compared to the year 2013.
6.4. Structure of employees according to theyears of service In year 2014 more than 60 % of employees had been employed for a period longer than 20 years.
ActivityNo. of em-
ployees as at 31. 12. 2013
Structure (%)No. of em-
ployees as at 31. 12. 2014
Structure (%)
Main activity (distribution network sector, electricity system management sector)
376 77.6 370 77.6
Joint activities (management, financial accounting sector, general sector, purchasing, information technology)
106 22.4 107 22.4
Total 473 100 477 100
No. Age class Number of employees
1 to 20 1
2 from 21 to 30 years 37
3 from 31 to 40 years 132
4 from 41 to 50 years 149
5 from 51 to 60 years 142
6 61 and more years 16
Total 477
No. Years of service Number of employees
1 to 5 28
2 from 6 to 10 years 42
3 from 11 to 20 years 113
4 from 21 to 30 years 145
5 from 31 to 40 years 133
6 over 40 years 16
Total 477
Table 1:Employees
overview
Table 2:Number of employees in individual age class
Table 3:Number of employees according to the years of service
Grafikon 1:Age structure of employees
61 and more years 3,4 %
29,7 %
27,7 %
7,8 %
0,2 %
31,2 %
from 51 to 60 years
from 41 to 50 years
from 31 to 40 years
from 21 to 30 years
to 20
Business Report | 6. Human Resources Management In Year 2014 Business Report | 6. Human Resources Management In Year 2014
A A32 33
Graph 2: Structure of employees according to the years of service
over 40 years 3,3 %
27,9 %
23,7 %
8,8 %
5,9 %
30,4 %
from 31 to 40 years
from 21 to 30 years
from 11 to 20 years
from 6 to 10 years
to 5
Average period of employment per employee in year 2014 amounted to 23.55 years and
it increased slightly – by 0.45, compared to the year 2013.
6.5. Structure of employees according to gender Gender ratio does not deviate significantly from year to year.
No. Gender Number of employees
1 Male 401
2 Female 76
Total 477
Table 4:Number of employees
according to gender
Male 84,1 %
Female 15,9 %
Graph 3:Structure of employees according to gender
6.6. Educational structure of employeesEducational level of employees is not significantly different compared with the previous year.
6.7. Employees with disabilities As at December 31 2014 there were 35 disabled persons employed in the company.
7 disabled workers performed their duties as a part-time job (4 hours); other 28 were
employed with a full time working obligation. Percentage of employees with disabilities
exceeds 6 % of all employees, which fulfills the statutory quota from the Decree estab-
lishing employment quota for persons with disabilities – Article 3, Paragraph 3) D.
Since May 2014 the company has been granted the right by the Republic of Slovenia
Fund for Promotion of Employment for Disabled Persons to bonuses for exceeding quo-
tas, which the fund pays monthly in the amount of 20 % of the minimum wage for each
disabled employee above the statutory quota.
6.8. Education of employees In year 2014 192 employees attended the trainings, including seminars, courses, pro-
fessional trainings, professional examinations, internal trainings. 267 working days were
spent for these purposes.
Within the application to the public tender Training and Education of Employees 2011 the
company was selected by the Slovene Human Resources Development and Scholarship
Fund for co-financing the implementation of employee motivation trainings. In this re-
No.Level
according to BP
No. of employees asat 31. 12. 2013
Structure(%)
No. of employees as at 31. 12. 2014
Structure(%)
1 8/2 1 0,21 1 0,20
2 8/1 4 0,85 4 0,84
3 7 41 8,67 43 9,00
4 6/2 37 7,82 38 8,00
5 6/1 51 10,78 52 10,90
6 5 148 31,29 149 31,24
7 4 169 35,73 168 35,22
8 3 15 3,17 15 3,10
9 2 6 1,27 6 1,30
10 1 1 0,21 1 0,20
Total 473 100 477 100
Table 5: Educational structure of employees
Business Report | 6. Human Resources Management In Year 2014 Business Report | 6. Human Resources Management In Year 2014
A A34 35
spect the Company was entitled to reimbursement of 70 % of funds for the implemented
trainings.
175 employees attended trainings and examinations in the field of health and safety at
work.
In order to obtain higher educational level the company has 15 contracts on education
concluded with the employees, which have n been completed yet.
For the purposes of additional education and progress of employees (tuitions, work-
shops, seminars, courses) in year 2014 we paid 131,354.32 EUR or an average of 276
EUR per employee. This amount includes also costs of employee salaries, which are
planned in the other item - cost of wages and salaries.
Since October 1 2013 the company has not been giving scholarships. For several years
now there has been enough suitably educated candidates on the labor market, so we
give more funds to practical trainings of high school and university students, who other-
wise have no opportunities obtaining specific skills in other companies.
6.9. Care for employeesIn Elektro Primorska Company we devote much attention to creating good working con-
ditions, maintaining and improving the health and to identifying and eliminating adverse
events. We are aware that a satisfied and motivated employee can contribute the most
to the success of the company.
Employees are informed about the events and activities in the company daily through
electronic mail, on the intranet and bulletin boards. In the second half of the year we ad-
ditionally enriched the informing of employees with the issuing of an internal e-newsletter.
6.10. Health and safety at work Safe and healthy working environment are the basic prerequisites for productivity and
satisfaction of workers, who care for the well-being of all employees and the company
as a whole.
In year 2014 we took care to provide and meet conditions for safe and healthy work of
employees and carried out all the necessary activities to reduce and prevent life and
health risks at workplaces.
In the company we take care of safe and orderly working conditions and to preserve the
health of employees:
• by respecting the Occupational Health and Safety Act and all the alternative legal
acts (in this respect a register of health and safety at work legislation was made),
• by regular periodic medical examinations of workers,
• by implementing specific preventive health measures: e.g. vaccinations against TBE,
flu, implementation of preventive measures though promoting health at workplace,
• by implementing health and safety at work policy, which is the commitment of the
company's management to ensure health and safety at work and represents a
framework for defining objectives of quality, environmental management and health
and safety at work,
• by making and adopting the Declaration of safety with Risk Assessment, which
additionally bounds the management of the company to implement measures, set
goals, informing, trainings, giving instructions, appropriate organization and provi-
sion of necessary sources,
• by regular periodic checks and care of the working and protective equipment,
• by making instructions for safe work and controlling the implementation of safe work
measures,
• by monitoring the condition regarding injuries at work, occupational diseases as well
as detecting and preventing their causes,
• by training workers for safe work and regular assessments of their knowledge and
preparedness in the field of safety and health at work.
In the context of a systematic approach to improving health and safety at work in Elektro
Primorska Company we emphasize the necessity of a responsible attitude of the employ-
ees to the field of health and safety at work including fire protection.
easier
2010
2012
2011
2013
2014
1
21 17 13 16 26
2
3
serious
Graph 4:Number of accidents at work in Elektro Primorska d. d. in the period from 2010 to 2014
Business Report | 6. Human Resources Management In Year 2014 Business Report | 6. Human Resources Management In Year 2014
A A36 37
6.11. Voluntary supplementary pensioninsurance Regulation and realization of the principles of social security of employees is part of the
company's business policy. One of the segments taking care of the good social condi-
tion of employees is also the decision of the company for an agreement on financing the
supplementary pension insurance for employees of Elektro Primorska d. d.
Joining the voluntary supplementary pension insurance scheme increases the social se-
curity of employees, above all during their retirement.
99 % of all employees are included in the voluntary supplementary pension insurance
scheme.
6.12. Accident insurance All employees in Elektro Primorska d. d. Company are insured against injury at work and
in connection with work.
6.13. Secondary activities affecting the well-being of employees We take care of the well-being of employees in Elektro Primorska d. d. Company by
stimulating and creating material conditions for different forms of socializing and spend-
ing holidays in holiday facilities owned by the company. Day of the employees was not
organized in year 2014 due to large workload of all employees during the elimination of
consequences of ice damage. Nevertheless, large number of employees took part in
annual sports games of electricity distribution companies, which are an opportunity for
socializing of employees within Elektro Primorska Group as well as with the employees of
other distribution companies. In year 2014 the company paid 5,000.00 EUR for operation
of Elektro Primorska sports society, which is the main motivator of sports and recreation-
al socializing of employees by organizing sports activities and mountain trips.
In accordance with the Family Friendly Company certificate, which the company obtained
already in year 2010, we continued with the implementation of selected and agreed for
new additional measures that will be implemented in year 2015.
Updating the system for the comprehensive management of customer relations
(implementation of the medium-term objective – improvement of customer satis-
faction for services rendered):
In year 2014 we upgraded and updated the technology of the elS information system for
work with customers. We continuously perform organizational, staff, and technological
measures to increase efficiency, transparency, risk management and rationalization of
costs. In year 2014 we realized the system to inform customers about outages, which is
currently at the stage of trial operation and integration into a new company website. Set
objective was fully achieved.
Update of the geographic information system (GIS Eng. NIS) (implementation of
the medium-term objective – continuous improvement of the power supply service
quality):
a. implementation of the first phase of GIS upgrade
b. inventory of LV network and entry into GIS up to 90 %.
In the context of the implementation of the first phase of upgrading the GIS geographic
information was forwarded to providers to demonstrate the functionality of systems for
entering and editing of geographic and attribute data. Interviews were conducted with
companies CGS, d. o. o., Sl-King, d. o. o., and GDi GISDATA, d. o. o. In addition, we had
a presentation of GIS, which the company SODO intends to introduce and presentations
of GIS solutions of the Telekom Slovenia. In view of this, we have prepared a compara-
tive analysis of the offers in the first phase. We have prepared a list of requirements for
network inventory in the first stage and forwarded it to Telekom Slovenia, d. d., together
with which we will study the technical possibilities of adapting their system for identifying
the distribution network.
Due to the accident and elimination of its consequences the inventory of LV-network was
being implemented in limited scale. We achieved 76.8 % realization.
Comprehensive asset management (asset management)
Long-term objective of introducing a system of integrated asset management is to in-
crease the utilization of funding opportunities, increase their value and reduce manage-
ment costs. Specific objectives, which we pursue in this, are:
• monitoring and managing the assets installations and related costs through one
system,
• integrated management of planned and unplanned maintenance activities,
• optimization of resources,
• planning stock movement,
7.Implementation of annual
objectives in year 2014
Business Report | 6. Human Resources Management In Year 2014 Business Report | 7. Implementation Of Annual Objectives In Year 2014
A A38 39
Business Report | 7. Implementation Of Annual Objectives In Year 2014 Business Report | 8. Distribution of Electricity
• managing contracts with suppliers,
• automation of business processes.
To establish a system of integrated assets management certain conditions must be met.
First one (elS renovation) was met on September 10 2014. Next necessary step is the
selection of the supplier of the new ERP system as the last purchase of a new GIS. IT
strategy of Elektro Primorska group is being prepared. Task force was established, which
defined the project's platform. Offers of potential providers were obtained. In January
2015 we selected a suitable provider and signed a contract. Activities related to IT strat-
egy formation start in February 2015.
Implementation of RAST program
Program of operating costs rationalization was launched in year 2012. In 2013 we started
with the implementation of proposed measure. In the first stage of the project's imple-
mentation Elektro Primorska Group defined the impact of these measures on the oper-
ations of the group (EBIT) in total amount of about 2.23 mio EUR (by the end of the year
2015). Following are achieved financial effects of the program according to individual
organizational units in year 2014 according to year 2011. Implementation of RAST pro-
gram continues in year 2015.
Graph 5:Achieved financial effects according to individual OU in year 2014 and 2011 (December 2014)
* Note: Problem of determining the actual savings in 2014 is related to the additional costs incurred in the period of ice damage, since these cannot be entirely excluded.
FINANCE AND ACCOUNTING DEPARTMENT
DISTRIBUTIONNETWORK
DEPARTMENT
DEESMANAGEMENT DEPARTMENT
IKT SERVICE
PUBLICPROCUREMENT
AND PURCHASES SERVICE
GENERALDEPARTMENT
Estimated impact on EBIT
(in EUR)439.515 977.250 121.776 57.645 88.281 234.816
Realized impact on EBIT
(in EUR)442.363 904.712 188.508 38.610 95.322 114.987
9
100,6 %
92,6 %
154,8 %
67,0 %108,0 %
49,0 %
9 9 9 19number ofmeasures
10
In year 2014 the activity was carried out in accordance with the Contract on the lease of
electricity infrastructure and provision of services for electricity distribution system ope-
rator between Elektro Primorska and SODO. It is implemented in two organizational units:
in distribution network sector – SDO and the electricity distribution system management
sector – SUDEES.
In year 2014 the electricity system managed by Elektro Primorska d. d., reached the fol-
lowing level of technical equipment according to distribution units (DU).
8.1. Services for SODOFor the implementation of services for SODO Company in year 2014 there were 6,256,455
EUR spent, which amounted to 90.93 % of planned funds for this period or 97.79 % com-
pared with year 2013.
8.Distribution of Electricity
Table 6:Distribution network operated by Elektro Primorska as at 31. december 2014
DV – power line, KBV – cable conduit, NNO – low voltage network, JR – public lightingRTP – transformer substation, RP – substation, TP – transformer station
DU GORICA DU KOPER DU SEŽANA DU TOLMINELEKTRO
PRIMORSKATOTAL
DV : 10kV–110 kV (m) 684,037 270,179 657,318 532,202 2,143,736
KBV: 10kV–35 kV (m) 129,824 182,893 169,917 75,561 558,195
NNO + JR (m) 1,620,522 1,799,150 1,121,777 1,304,971 5,846,420
RTP + RP (piece) 17 8 8 7 40
TP (piece) 800 526 570 474 2,370
Table 7:Realization of services for SODO in year 2014
Type of work Plan (€) Realization (€) Realization (€) % %
January–December 2014
January–December 2014
January–December 2013
2:1 2:1
1 2 3 4 5
129 Maintenance of electricity infrastructure
3,286,472 2,916,171 2,877,958 88,73 101.33
140 Implementation and organization of emergency service
372,600 376,795 375,178 101.13 100.43
141 Conducting of operation 420,700 419,842 426,267 99.80 98.49
146 Process management 374,600 354,444 364,317 94.62 97.29
151 Telecommunication support 160,000 146,704 164,629 91.69 89.11
156 Management of protective devices
42,200 36,000 30,000 85.31 120.00
161 Development 213,500 131,976 153,094 61.82 86.21
168 Monitoring and establishing of supply quality
32,000 8,960 22,033 28.00 40.67
169 Electricity metering 1,142,340 991,596 1,156,354 86.80 85.75
183 Implementation of access services
836,140 873,967 828,038 104.52 105.55
TOTAL IMPLEMENTATION OF SERVICES FOR SODO
6,880,552 6,256,455 6,397,868 90.93 97.79
A A40 41
Business Report | 8. Distribution of Electricity Business Report | 8. Distribution of Electricity
8.1.1. Achieving the goals and comparison with year 2013
Financial realization of the plan of implementation of services for SODO is lower than
planned due to the rationalization implemented maintenance works measures. In indivi-
dual areas, the plan was physically carried out between 75% and 100%. Inspection of
equipment were realized 97.2 %, audit of devices 76.0 % and route clearings for over-
head lines 107.7 %. In audits of facilities, the percentage of output is lower, because our
colleagues were busy due to the elimination of ice damage.
8.2. InvestmentsImplementation of investments in 2014 took place in accordance with the plan and with
the changes that have been defined within the version II and version III of the plan of
investments. As by the month of October we successfully remedied the consequences of
ice damage with the planned financial resources, we decided that by the end of 2014 we
increase the volume of rehabilitation works, and thereby reduce the risk for the smooth
functioning of the electricity distribution system. Thus, we increased the planned amount
of investments in the version III of the investment plan from 12,000,000 EUR by additional
1,100,000 EUR to 13,100,000 EUR.
For investments in facilities, equipment procurement and project documentation we have
together invested 13,100,450 EUR or. 100.00 % of planned annual funds (in year 2013
financial realization of the plan was 10,982,407 EUR or. 91.52 % of planned funds).
We invested 11,388,425 EUR or. 98.64 % of planned annual funds in the sector for the
distribution network, 1,209,265 EUR or. 109.93 % of planned annual funds in the DES
management sector, 87,825 EUR or. 93.43 % of planned annual funds in market activiti-
es, 15,790 EUR or. 63.16 % of planned annual funds in general sector and 399,145 EUR
or. 118.88 % of planned annual funds in the services for information and telecommuni-
cation technologies.
According to different groups the results are as follows:
Facilities up to 20 kV
In facilities of up to 20 kV: DV, KBV, TP and NNO we invested a total of 9,550,861 EUR
or. 72.90 % of entire annual consumption (in year 2013 – 5,590,004.00 EUR). Financial
realization of the plan was 98.66 %.
Investment groups Realized assets Shares of investment groups
Buildings 10,265,185 € 78.36 % of all assets
Equipment 2,097,596 € 16.01 % of all assets
Documentation 737,669 € 5.63 % of all assets
Total: 13,100,450 €
Table 8: Investments according to main investment groups
Majority of investments in medium voltage overhead lines was carried out to eliminate the
consequences of ice damage in early 2014.
Significant investments in the 20 kV overhead lines:
DV Hrenovica RTP Postojna–Razdrto (5 km), DV Pivka–Ilirska Bistrica (4.9 km), DV
Vojsko–Kočevše (4 km) , DV RTP Črni Vrh–Idrija (3.7 km), DV RTP Postojna–TP Prestra-
nek (3.6 km), DV branch Vojsko (3 km), DV branch Mrzla Rupa (3 km).
Physical realization of the plan in the investment group 20 kV power lines amounts to
100.12%, while the financial 96.56%.
Investments in the medium-voltage cable conduits were carried out with the objective of
ensuring reliable supplies of electricity consumers. Thus, medium-voltage cable conduits
investments were incorporated in the urban areas with the aim of increasing the looping
of the network in areas where there are weather phenomena that affect the quality of
electricity supply (sleet, wind), and on the routes, where frequent defects were occurring
due to wear of the existing cable conduits.
Significant investments in the 20 kV cable conduits:
KBV RTP Postojna–Pasje hiše (4.5 km), KBV heavy line Pivka–Postojna (3.3 km), KBV riral
Pivka–Postojna (3.3 km), KBV 20 kV Lohača–Staje (2.2 km), EKK Miren–DV Sela (1.72
km), KBV Dekani 1–Dekani square (1.5 km), reconstruction KBV TP Parangal–Marina (1
km), KBV Debeli Rtič II–Miloki (0.9 km).
Physical realization of the plan in the investment group 20 kV cable conduits amounts to
89.89 %, while the financial 91.01 %. Discrepancy between planning and realization was
due to bad weather at the end of 2014, which did not allow the execution of the works
for the construction of cable routes, especially on the route between Pivka and Postojna.
Physical realization of the plan in the investment group 0.4 kV overhead lines amounts
to 99.94 %, while the financial to 104.49 %. Increased volume of realization is detected
mainly in the implementation of the renewal of obsolete 0.4 kV overhead lines in areas of
DU Nova Gorica.
Physical realization of the plan in the investment group 0.4 kV cable conduits amounts
to 89.19 %, while the financial to 110.60 %. Financial realization surpassed the planned
values due to the increased volume of work and specific costs in urban areas.
Physical realization of the plan in the investment group TP 20/0.4 kV amounts to 107.53
%, while the financial to 108.86 %. Greater realization than planned is due to the imple-
mentation of a large number of renovations of transformer stations.
A A42 43
110 kV power lines
In 2014, we carried out the renovation of the 110-kV Pivka Postojna, which collapsed in
February due to ice damage.
Physical realization amounts to 100 %, while financial to 109.45 %. Financial deviation
from the planned value was created because it was necessary to carry out additional
work, which the basic plan did not cover. Need for it was demonstrated during the ren-
ovation (rehabilitation of additional damage discovered on steel structures observed in
the implementation of works, additional works for cleaning undergrowth in the leg parts
of pillars, ancillary works for regulating the access routes due to soggy terrain, additional
replacement of cables between the SM 12 and SM 15 due to the detection of damage,
increased costs for the implementation of control over the quality of the works carried out
due to the inclusion of new subcontractors).
Transformer stations (RTP) 110/20 kV
In facilities of transformer stations RTP 110/20 kV we invested a total of 119,291 EUR. In
year 2014 we implemented the following investments in v RTP 110/20 kV:
• RTP 110/20 kV Ilirska Bistrica: together with the company ELES we completed the
construction and obtained an operating permit for a new 110 kV juncture in GIS
implementation.
• RTP 110/35/20 kV Tolmin: We completed the renovation of the 110 kV transformer
field TR 1 so that we changed technically obsolete primary and secondary equip-
ment.
• RTP 110/20 kV Gorica: We carried out electrical installation work to connect power
transformer 110/20 kV TR 2, which we transported from RTP Vrtojba. We plan to
complete the work in year 2015.
• RTP 110/20 kV Koper: we started with activities for the installation of operational
control of power transformer 110/20 kV TR 2.
• RTP 110/20 kV Idrija: we completed the reconstruction of own use energy facility, by
replacing the worn-out rectifiers and inverters.
• RTP 110/20 kV Cerkno: we started with activities for the reorganization of the con-
necting links in the juncture20 kV, which will enable the implementation of safe ma-
nipulation of the switch between the systems collectors.
Physical realization in investment group RTP 110/20 kV amounted to 47.82 %, while
financial to 59.88 %. Physical realization does not reach planned levels owing to the
delayed activities for the installation of insulation in medium voltage bus bars of power
transformers in RTP 110/35/20 kV Tolmin and RTP 110/20 kV Postojna, and in the execu-
tion of the connecting links in the juncture 20 kV in RTP 110/20 kV Cerkno.
2014 2013 2012
Power lines 20 kV 97.56 km 30.90 km 27.23 km
Cable conduits 20 kV 32.48 km 18.53 km 19.17 km
Low-voltage network 47.91 km 38.58 km 49.66 km
Transformer stations 24 pcs 37 pcs 38 pcs
Table 9:Physical indicators of constructed and reconstructed facilities
Transformer stations RTP 35/20/10 kV and substations (RP)
In RTP 35/20 kV RP we invested a total of 397,205 EUR. In year 2014 we implemented
the following investments in RP:
• RP 20 kV Gradišče – e completed the renovation of 20 kV juncture with the supply
and installation of new primary and secondary juncture equipment.
• RP 20 kV Bovec – together with the national technical office, we implemented a stat-
ic post-earthquake rehabilitation of the building and replaced batteries. We intend to
complete the static rehabilitation in 2015.
• RP 20 kV Rožna dolina – we installed a remote control with the aim of improving the
quality of electricity supply in the area.
• RP 20 kV Kanal – we carried out the replacement of rechargeable batteries.
• RP 20 kV Komen – we started with activities for the purchase of equipment for the
reconstruction of 20 kV juncture. We intend to carry out the reconstruction in 2015.
• RTP 110/20 kV Idrija: we started with the reconstruction of the equipment of own
use of energy facility. In 2014 we built two new cabinets of DC distribution and test-
ed them functionally. They will provide the power to in 2015 reconstituted secondary
part of 20 kV juncture and remote control devices. Old cabinet of DC distribution will
remain to power the rest of the juncture until the latter is reconstituted too.
Physical realization in investment group RTP 35/20 kV amounted to 83.07 %, while finan-
cial to 108.77 %. Physical realization does not reach the planned level due to the long
procurement procedures in the event of the implementation of investments in RP Komen.
Financial realization exceeds the physical due to incorrect assessments of the value of
post-earthquake rehabilitation in RP 20 kV Bovec.
Electricity facilities total
In electricity facilities we invested a total of 10,265,184 EUR, financial realization amount-
ed to 98.01 % of the planned (in year 2013: 7,306,021 EUR). Share of electricity facilities
in total spending amounted to 76.85 %.
Commercial and operating buildings
In 2014 we arranged rooms for measuring center in the service complex Kromberk,
bought an apartment on the Rejčeva Street and carried out small-scale investments in
commercial buildings in DU Nova Gorica and DU Sežana. Invested assets amounted to
197,827 EUR.
Physical realization in investment group commercial buildings amounted to 98.40 %,
while financial to 77.06 %. Financial realization lags behind the plans mainly due to the
delay of contractual activities for arrangement of a conference room at the seat of DU
Sežana to year 2015.
Physical realization in investment group operating facilities amounted to 107.41 %, while
financial to 96.46 %.
Facilities total
In facilities RTP, DV, KBV, TP, NNO and buildings we invested a total of 9,550,861 EUR,
financial realization amounted to 98.66 % of the planned (in year 2013 – 5,590,004 EUR).
Share of facilities in total spending amounted to 78.36 %.
Business Report | 8. Distribution of Electricity Business Report | 8. Distribution of Electricity
A A44 45
Equipment
In the equipment we invested a total of 2,097,596 EUR or 16.01 % of all assets (in year
2013: 2,901,153 EUR). Total financial realization amounted to 110.78 % of the planned.
Remote control
We carried out the following major investments:
• carried out the adaptation of SCADA system for login of failures and replaced a wall
display in the distribution control center,
• continued with the project of installation of protection on covered conductors,
• installed protection devices for the control of resistor in two 110 kV transformer
fields,
• began with activities for replacement of secondary equipment of 20 kV juncture in
RTP Idrija (installed a new DC hub of own use),
• carried out the transition to the protocol IEC 104 RP Črni Vrh and Dobrovo,
• installed two new remotely controlled disconnectors,
• installed remote control in RP Rožna Dolina,
• replaced all technically outdated protective relays on existing DVPLMs.
Financial realization amounted to 103.58 % of the planned. Deviation was due to the ac-
celerated implementation of the replacement of relays DVPLM's according to the plans.
Financial realization amounted to 106.09 % of the planned. Deviation was due to the
accelerated implementation of works in the replacement of secondary equipment for
juncture20 kV in RTP Idrija and incorrect assessment of the budgets for replacing the
relays on existing DVPLMs.
Telecommunications
We carried out the following major investments:
• rehabilitated the damaged telecommunication links from the ice damage, like RTP
Postojna–Belsko,
• began with activities for the introduction of digital FM.
Financial realization amounted to 98.89 % of the planned value.
Measuring devices
We carried out the following major investments:
• purchased and installed in 1694 direct electricity meters,
• purchased and installed 207 industrial meters,
• replaced electricity meters in RTP Pivka,
• implemented the SUNSEED project.
Financial realization amounted to 112.70 % of the planned value. Financial realization de-
viates from the planned value because labor costs for the installation of electricity meters
were not included in the plan.
Tools
We purchased the necessary tools and equipment to carry out electrical installation
works, which replaced the worn-out.
Financial realization amounted to 87.77 % of the planned value. Planned value was not
achieved due to lower achieved prices for the purchase of tools and smaller needs for
tools than according to plans.
Means of transport
We purchased seven new transport vehicles, replacing the worn out.
Financial realization amounted to 111.38 %. Financial realization was exceeded due to
faster delivery of means of transport according to plans.
Office equipment
We purchased the necessary office equipment for the call center at company headquar-
ters and replaced other outdated equipment. Financial realization amounted to 49.88 %
of the planned value.
Informatics
We completed the renovation of IIS, we purchased computers and printers as well as in-
formation energy equipment. Financial realization amounted to 122.09 % of the planned
values. Deviation was caused due to unplanned labor costs for the installation of com-
puter and energy IT equipment.
Documentation
For the project documentation we invested a total of 737,669 EUR or 5.63 % of all assets
(in year 2013: 775,232 EUR). Financial realization amounted to 100.64 % of the planned.
We have produced 82.67 pieces of project documentation.
Business Report | 8. Distribution of Electricity Business Report | 8. Distribution of Electricity
A A46 47
NO. NAME OF FACILITY, EQUIPMENT PLANNED 2014 IN EUR
REALIZATION 2013 IN EUR
REALIZATION 2014 IN EUR
% %
1 2 3 3:1 3:2
1 POWER LINES 4,153,950 1,256,352 4,101,600 98,7 % 326,5 %
1.1. DV 110 kV 700,000 0 766,173 109,5 % 0 %
1.2. DV 35kV 0 0 0 0,0 % 0 %
1.3. DV 20kV 3,453,950 1,256,352 3,335,426 96,6 % 265,5 %
2 CABLE CONDUITS 2,677,200 1,451,416 2,436,600 91,0 % 167,9 %
2.1. KBV 110kV 0 0 0 0 0
2.2. KBV 20kV 2,677,200 1,451,416 2,436,600 91,0 % 167,9 %
3 LOW VOLTAGE NETWORK 1,955,650 1.563,309 2,080,009 106,4 % 133,1 %
3.1. NADZEMNI VODI 0,4 kV 1,359,850 783,844 1,42,024 104,5 % 181,3 %
3.2. KABLOVODI 0,4kV 595,800 779,465 658,985 110,6 % 84,5 %
4 STATIONS 1,458,190 2,753,932 1,449,148 99,4 % 52,6 %
4.1. RTP 110/20kV 199,200 1,216,718 119,291 59,9 % 9,8 %
4.2. RTP 35/20/10kV 365,150 218,286 397,205 108,8 % 182,0 %
4.3. TP 20(10)/0,4kV 710.550 986.714 773,506 108,9 % 78,4 %
4.4. TRANSFORMATORJI 183,290 332,214 159,146 86,8 % 47,9 %
TOTAL FACILITIES UP TO 20 kV (1.2+2.2+3+4.3+4.4)
9,680,640 5,590,004 9,550,861 98,7 % 170,9 %
TOTAL ELECTRICITY FACILITIES (1+2+3+4)
10,244,990 7,025,008 10,067,357 98,3 % 143,3 %
7 COMMERCIAL BUILDINGS 116,250 212,978 89,592 77,1 % 42,1 %
8 OPERATING FACILITIES 112,200 68,035 108,236 96,5 % 159,1 %
FACILITIES TOTAL 10,473,440 7,306,021 10,265,184 98,0 % 140,5 %
9 REMOTE CONTROL 255,700 702,032 271,281 106,1 % 38,6 %
11 TELECOMMUNICATION 81,500 172,007 80,598 98,9 % 46,9 %
12 MEASURING DEVICES 755,300 1,183,333 851,285 112,7 % 71,9 %
13 MECHANIZATION 0 19,150 0 0,0 % 0,0 %
14 TOOLS 113,810 160,054 99,901 87,8 % 62,4 %
15 MEANS OF TRANSPORT 315,000 323,506 350,871 111,4 % 108,5 %
16 OFFICE EQUIPMENT 15,000 38,869 7,483 49,9 % 19,3 %
17 INFORMATICS 454,300 302,202 436,177 96,0 % 144,3 %
EQUIPMENT TOTAL 1,893,560 2.901,153 2,097,596 110,8 % 72,3 %
18 DOCUMENTATION
18.1. PROJECT DOCUMENTATION 733,000 775,232 737,669 100,6 % 95,2 %
DOCUMENTATION TOTAL 733,000 775,232 737,669 100,6 % 95,2 %
INVESTMENTS 13,100,000 10,982,407 13,100,450 100,0 % 119,3 %
Table 10:Overview of investment plan realization for year 2014
Table 11:Monthly quantities of delivered electricity
8.2.1. Achieving the goals and comparison with year 2013
In Elektro Primorska d. d. Company in year 2014 we implemented investments according
to the adopted plan of investments in the amount of 13,100,000 EUR. Realization of the
plan of investments slightly exceeded the planned value. Compared to 2013, the realiza-
tion of the plan of investments increased by 19.3 %.
8.3. Acquired and transmitted electricity in year 2014 In year 2014 there were 1,340,006.8 MWh acquired from the transmission network,
188.351,0 MWh from electricity producers and 3,158.0 MWh from aggregates. In total,
the distribution network acquired 1,531,515.8 MWh. Comparison of assumed quantities
of electricity in 2014 from 2013 records a drop acquisition from the transmission network
by 4.9% and an increase in the acquisition of the qualified producers by 16.4%, so that
the joint acquisition index amounts to 0.9752.
In 2014, all customers were invoiced for 1,445,454.0 MWh.
Index of invoiced electricity on quantities from year 2013 amounted to 0.9733.
In year 2014 the electricity sent to Italy amounted to 50,153.9 MWh. 13,897.1 MWh were
sent to the area of Gorica and 36,256.8 MWh to the area of Opčine. Distribution of elec-
tricity in Italy is not recorded as a distribution from the distribution network management,
but as the supply of energy on commercial lines.
In 2014 losses in the distribution network amounted to 82,903.8 MWh or 5.74 % of in-
voiced quantities.
MonthRealization 2014
[kWh]Realization 2013
[kWh]Plan 2014 [kWh]
Index of realization (2014/2013)
January 121.323.005 124.697.217 124.805.441 0,9729
February 108.255.836 114.610.366 119.993.572 0,9446
March 124.301.395 130.822.608 128.870.595 0,9502
April 119.525.577 121.907.809 119.382.456 0,9805
May 115.761.830 120.188.098 125.765.262 0,9632
June 122.811.344 119.735.744 124.438.560 1,0257
July 129.996.626 134.126.144 131.492.783 0,9692
August 119.210.943 124.651.770 121.238.058 0,9564
September 115.094.643 123.549.603 122.787.417 0,9316
October 126.048.484 126.268.114 126.614.823 0,9983
November 119.536.751 119.329.518 118.128.337 1,0017
December 123.587.560 125.190.865 125.659.696 0,9872
Total 1.445.453.994 1.485.077.856 1.489.177.000 0,9733
Business Report | 8. Distribution of Electricity Business Report | 8. Distribution of Electricity
A A48 49
8.4. Access to the distribution network In 2014 the organization of the distribution of electricity remained unchanged and so
distribution system operator - SODO, d. o. o., based in Maribor remained the holder of
providing access to the distribution network under the provisions of the Energy Act, while
the electricity distribution companies remained providers on the basis of contracts on
lease of distribution infrastructure and provision of services for SODO.
As part of the implementation of the operational tasks of providing access to the distribu-
tion networks all revenues from network usage are revenues of SODO.
Elektro Primorska d. d. as owner of the distribution infrastructure and the service pro-
vider issues SODO monthly bills for rent of infrastructure and services, as well as for
the purchase of electricity to cover losses in the distribution network in the amount of
recognized costs.
8.4.1. Use of electricity network
In accordance with the provisions of the Act determining the methodology for charging
for the network charge, the methodology for setting the network charge, and the criteria
for establishing eligible costs for electricity networks (Official Gazette RS, No. 17/2014)
tariff items for distribution network did not change.
On January 1 2014 lower tariff item for transmission network, which is managed by ELES
Company, entered into force. Network charge for transmission network decreased by 5.1
% compared to year 2013. Downward trend in transmission network charge will continue
in 2015.
In 2014 there was also no change in the contribution for the provision of support for
diffuse sources. This was last changed in September 2013, when there was a significant
reduction in high and medium-voltage consumption groups.
In year 2014 the number of customers connected to the distribution network of Elektro
Primorska, increased by 364 and as at December 31 2014 it amounted to 131,408.
In 2014 to all electricity consumers in the area of Elektro Primorska there were by
14,502,987 kW of power invoiced and 1,445,453,994 kWh of electricity, and in this re-
spect the invoiced value of 60,010,500 EUR. Index of invoiced value compared to the
value in 2013 is 0.9479.
8.4.2. Excessively acquired wattles power at cos ϕ < 0,95
In 2014 there were no changes regarding the way excessive reactive energy for cus-
tomers was acquired and with the acquisition on the transmission network. There was
a change in the pricelists though. For high-voltage feed the same differentiated price
remained 0.00626 EUR/kvarh per individual feed point. For medium and low-voltage feed
the consumption is no longer charged or the new pricelist now equals 0 EUR/kvarh. In
accordance with the lease agreement of the distribution infrastructure and implemen-
tation of services for the system operator of the electricity distribution network Elektro
Primorska d. d. issues invoices from excessively acquired reactive power in the name
and for the account of SODO, d. o. o.
In year 2014 there were 330,974 kvarh of excessively acquired wattles power acquired
from the transmission network. Index of wattles power from the transmission network
compared to the quantities in 2013 amounted to 1.0433. Cost of excessive reactive pow-
er is 0 EUR, whereas the total acquired energy occurs on the medium-voltage level.
In the same period the excessive wattles energy from electricity networks of all custom-
ers in the area there were 35,193,295 kvarh invoiced in the amount of 293,725,03 EUR.
Index of excessive reactive energy on quantities in 2013 amounted to 1.07165.
Account of excessive reactive energy for the area for the year 2014 show positive differ-
ence of 293,725.03 EUR.
8.4.3. Electricity losses in the distribution network
In accordance with the mentioned agreement on the lease of electricity distribution in-
frastructure and provision of services for the distribution system operator, the company
Elektro Primorska in 2014 purchased electricity to cover losses in its own name and for
2014 INVOICED QUANTITIES REVENUE FROM USE OF NETWORK [€] REVENUE SUPPORTS [€] TOTAL REVENUE
[€][kW] [kW] Trans-mission network
Distribution network
System Services
Addition JARSE
Addition BORZEN
Excessive wattles energy
consump-tion
Addition OVE + SPTE
Addition DVE
January 1.208.490 121.323.005 697.407 3.198.929 387.635 20.625 15.772 22.467 1.067.487 -2 5,410,319
February 1.200.256 108.255.836 643.634 2.961.053 384.994 18.403 14.073 19.120 1.049.774 3 5,091,054
March 1.209.753 124.301.395 683.972 3.058.826 388.040 21.131 16.159 25.725 1.060.095 5 5,253,953
April 1.156.473 119.525.577 559.017 2.620.424 370.950 20.319 15.538 25.592 1.020.099 -6 4,631,933
May 1.202.586 115.761.830 562.877 2.653.518 385.741 19.680 15.049 22.909 1.058.790 20 4,718,584
June 1.220.310 122.811.344 572.065 2.666.539 391.427 20.878 15.965 32.499 1.092.346 0 4,791,720
July 1.216.735 129.996.626 593.300 2.752.611 390.280 22.099 16.900 32.324 1.087.251 0 4,894,763
August 1.216.016 119.210.943 572.907 2.692.296 390.049 20.266 15.497 27.602 1.081.294 -3 4,799,909
September 1.194.774 115.094.643 554.970 2.628.177 383.236 19.566 14.962 24.024 1.046.636 0 4,671,571
October 1.241.074 126.048.484 688.165 2.959.676 398.087 21.428 16.386 23.442 1.112.979 0 5,220,164
November 1.214.036 119.536.751 663.195 2.917.149 389.414 20.321 15.540 20.224 1.070.051 0 5,095,895
December 1.222.484 123.587.560 709.114 3.189.304 392.124 21.010 16.066 17.798 1.085.219 0 5,430,635
TOTAL 14.502.987 1.445.453.994 7.500.623 34.298.502 4.651.978 245.727 187.909 293.725 12.832.020 17 60,010,500
Table 12:Revenues from network use and supports for year 2014
Business Report | 8. Distribution of Electricity Business Report | 8. Distribution of Electricity
A A50 51
its own account under a contract of sale and purchase of electricity from the supplier
Holding Slovenske elektrarne at the price of 51.66 EUR/MWh. For the calculation of the
costs for covering the losses the recognized percentage of losses in the amount of 5.77%
of consumption of electricity charged to customers at the purchase cost of losses (51.66
€/MWh) was used.
Losses in the distribution network for year 2014 amounted to 82,903,838 kWh, which
represented 5.74 % of total invoiced electricity to all customers. Compared to year 2013
losses were lower in quantity and percentage (in year 2013: 85,419,284 kWh and 5.75 %).
Recognized costs for covering the losses amounted to 4,308,583 EUR, while the cost of
purchasing losses amounted to 4,282,812 EUR. Costs of covering the losses thus show
a positive difference in the amount of 25,771 EUR.
8.4.4. Peak of distribution network consumption and operating hours
In year 2014 the peak of distribution network EP consumption occurred on Wednesday,
December 10 2014, at 18.00 and it amounted to 252.905 MW. Compared to year 2013
(258.004 MW) it was lower by 5.099 MW or by 2.0 %. Annual operating hours amount to
6,055.7 hours.
In Table 13 monthly peaks in the distribution network of Elektro Primorska for the year
2014 and the related annual operating hours are shown. Graph 6 shows monthly con-
sumption peaks, while Graph 7 monthly quantities of acquired electricity in year 2014.
8.4.5. Production of electricity from producers connected to the distribution
network
In year 2014, according to the balance as at December 31 2014 there were 494* produ-
cers of electricity connected to the distribution network of Elektro Primorska d. d. or 26
more than in year 2013. In year2014registered production of these producers amoun-
ted to 197,979,631 kWh or was by 13.6 % higher than in year 2013. In the distribution
network of Elektra Primorska d. d. there were 188,351,020 kWh of electricity delivered or
by 16.4 % more than in year 2013. Difference between quantities of electricity produced
and power delivered in the distribution network, is proper consumption of SPTE produ-
ction facilities and delivery of produced electricity in the internal network of customers,
which in year 2014 amounted to 9,628,611 kWh.
Peak in EP for year 2014 amounted to252,905 MW and occurred on Wednesday December 10 2014 at 18:00.
Note:
*Entire electricity acquired represents entire acquisition of electricity in the distribution network (acquisition from transmission network+ acqui-
sition from producers) – following the system of hourly average values of balance group realization including derogations
**Monthly values of annual operating hours are calculated according to monthly data calculated to the annual value
150
175
200
225
250
275
300
P [MWh/h]
Peak 2014
Peak 2013
Janu
ary
Feb
ruar
y
Mar
ch
Ap
ril
May
June
July
Aug
ust
Sep
tem
ber
Oct
ober
Nov
emb
er
Dec
emb
er
Janu
ary
Feb
ruar
y
Mar
ch
Ap
ril
May
June
July
Aug
ust
Sep
tem
ber
Oct
ober
Nov
emb
er
Dec
emb
er
150
175
200
225
250
275
300
[GWh]
Quantities 2014
Quantities 2013
Graph 6:Monthly electricity consumption peaks in year 2014
Graph 7:Monthly acquired electricity quantities in year 2014
Table 13:Peak and annual operating hours of Elektro Primorska in year 2014
MonthMonthly peak
Entire electricity acquired*
Operating hours annual**
Operating hours annual** Monthly peak
ratio 2014 / 2013Entire electricity acquired 2013
[MWh/h] date hour [MWh] [h] [MWh/h]
January 249,772 29/01/14 10:00 135.703,488 6.397,031 248,240 1,006 142180,087
February 227,424 19/02/14 10:00 119.341,950 6.840,560 254,339 0,894 129905,179
March 235,560 05/03/14 20:00 132.944,392 6.645,071 256,768 0,917 144005,627
April 221,409 02/04/14 21:00 123.998,849 6.813,872 239,248 0,925 125382,141
May 207,253 28/05/14 10:00 118.623,045 6.739,061 213,407 0,971 117491,219
June 235,090 12/06/14 13:00 124.937,561 6.465,922 233,767 1,006 122781,507
July 228,036 17/07/14 13:00 131.572,732 6.793,501 239,001 0,954 136630,707
August 221,393 27/08/14 10:00 121.271,355 6.449,492 226,566 0,977 126445,586
September 221,142 08/09/14 21:00 122.917,515 6.762,607 217,677 1,016 123870,010
October 239,233 26/10/14 03:00 128.833,873 6.340,743 228,647 1,046 132125,848
November 246,435 26/11/14 18:00 131.791,646 6.506,654 245,846 1,002 128059,635
December 252,905 10/12/14 18:00 139.579,430 6.498,231 258,004 0,980 141616,466
Peak: 252,905 Total: 1.531.515,836 6.055,696 1570494,012
Annual peak 2014 252,905
Annual peak 2013 258,004
Annual peak ratio 2014 / 2013 0,980
Operating hour 2014 6.055,696
Operating hour 2013 6.087,092
Operating hours ratio2014 / 2013
0,995
Business Report | 8. Distribution of Electricity Business Report | 8. Distribution of Electricity
A A52 53
* number of all power stations in the area of EP that are connected to the distribution network or internal network of the customer
Table 14: Production of electricity according to primary energy sources
Table 15:Number of interruptions, longer than three minutes
Table 16: SAIFI – System Average Interruption Frequency Index
Table 17: SAIDI – System Average Interruption Duration Index
8.4.6. Quality of electricity supply
8.4.6.1. Voltage quality
Continuous monitoring of voltage quality in the company Elektro Primorska in 2014 co-
vers 55 registrars in 28 facilities of the network. Data on the quality of the voltage is ob-
tained from 15 high-voltage bus bars, from two medium-voltage bus bars bordering the
neighboring network, and from 38 medium-voltage bus bars representing the main power
points in our distribution network.
Results of the permanent measurements in the area of the distribution company Elektro
Primorska in 2014 we can observe improvement of voltage quality compliance with the
requirements of the standard on the HV-level 96.52 % in year 2013 to 97.70 % in year
2014, while on the MV-level however there was a deterioration of voltage quality from
97.75 % in year 2013 to 97.68 % in year 2014.
Vast majority of deviations of voltage quality in 2014 was due to the ice damage in early
February 2014 and the failure of the transmission line DV 110kV Divača–Ajdovščina
(ELES) on October 15 2014. There was also an increase in flickers during summer storms
with lightning strikes.
In 2014 at 27 measuring points (out of 55) in all measured weeks we recorded a full
compliance with the voltage quality requirements of the standard, while the remaining
28 of the measuring points recorded at least one week of non-compliance parameters of
voltage quality standard EN 50160. On three measuring points we recorded deviation of
root mean square value of the voltage level, on nine measuring points we recorded devi-
ations of rms value of the voltage level, on nine measuring points we recorded increase
of flickers, on 25 measuring points we recorded the variation of frequency.
8.4.6.2. Continuity of power supply
In the area of Elektro Primorska on high-voltage and medium-voltage power devices in
year 2014 we recorded 6,086 unannounced interruptions of electricity, longer than three
minutes, of which 31 were outages of power transformers 110/SN kV and SN/SN kV.
For the purposes of regular and investment maintenance of devices 958 disconnections
were made, which caused announced interruption of electricity. In DCV Elektro Primorska
252 dispatches were issued, of which 89 were for works on power transformers 110/SN
kV and SN/SN kV.
Total number of unannounced and announced interruptions of electricity, longer than
three minutes, was 7,044. Number of interruptions is significantly higher than in previous
years, because of the glaze ice in January and February.
8.4.6.3. Commercial quality
In accordance with the Act concerning the reporting of data on quality of electricity
supply the company has been regularly monitored the commercial quality indicators and
reported to the Energy Agency and SODO.
Number of interruptions, longer than 3 minutes in year 2014 in year 2013 Index 14 /13
Number of unannounced interruptions 6086 1047 5,812
Number of announced interruptions – disconnections 958 509 1,882
Total number of announced and unannounced interruptions 7044 1556 4,527
SAIFI (System Average Interruption Frequency Index) in year 2014 in year 2013 Index 14 /13
Average number of unannounced interruptions per customer 5,19 4,12 1,259
Average number of announced interruptions – disconnections per customer 0,69 0,68 1,015
Average number of announced and unannounced interruptions per customer 5,88 4,8 1,225
SAIDI (System Average Interruption Duration Index) in year 2014 in year 2013 Index 14 /13
Average time of customer without electricity due to unannounced interruptions in hours
31,73 6,23 5,093
Average time of customer without electricity due to announced interruptions – disconnections in hours
1,57 1,37 1,146
Average time of customer without electricity due to announced and unan-nounced interruptions in hours
33,3 7,6 4,381
Availability: 0.99619
Electricity sourceNumber of power stations
Production 2014 [KWh]
Production 2013 [KWh]
2014 / 2013
HE SENG 22 106.785.928 84.663.419 1,261
HE Other 75 42.305.595 37.116.853 1,140
Solar power stations 357 34.051.675 37.860.699 0,899
Wind power stations 8 4.208.614 4.221.222 0,997
SPTE 32 10.627.819 10.435.943 1,018
Total 494 197.979.631 174.298.136 1,14
Business Report | 8. Distribution of Electricity Business Report | 8. Distribution of Electricity
A A54 55
Business Report | 9. Services For External Customers Business Report | 10. Information Support and Development
9.Services For External Customers
10.Information Support and
Development
Acquisition of business for the market and for external customers took place with no-
tifications on published public tenders and direct negotiations with potential investors.
Services were conducted primarily in facilities of medium- and low-voltage network and
public lighting. Market business covers the entire scope of work for which the company
Elektro Primorska is specialized, namely the design and preparation of project documen-
tation, construction or reconstruction of cable lines, transformer stations, production
connectors for new buildings, renovation of public lighting with the reconstruction of
switching points and other minor services.
In 2014 we were successful in this work, as despite extraordinary competition in the
market we managed to exceed the market value of the services compared to the plan by
2.67 %, while compared to the previous year we fell back by 4.22 %.
IT service covers an area of modernization of the IT system, intranet and internet portal,
server infrastructure with all the services, databases, network computing infrastructure
for the needs of management of facilities and business computing as well as care for
installing new workstations and user support.
Contractual partner Informatika, d. d., is responsible for the operation of the accounting
information system and the development of new modules for connection processes, bill-
ing of network charge and balances on accounts.
Main activities in year 2014 were as follows:
• In the field of modernization of IT system all milestones in the contract with Informa-
tika, d. d. were completed, multiple test have been carried out, and in September a
renovated part of an information system went into operation;
• on the internal portal, we created a multitude of checks for purposes of monitoring
the costs;
• we upgraded the software module COT (comprehensive risk management);
• we upgraded the computer network primarily for the purpose of managing energy
facilities;
• we maintained all wired, radio and optical communications infrastructure including
FM network and participated in the upgrade of optical connections;
• we began with activities to replace the existing outdated FM system;
• we purchased new workstations for the purpose of replacing the obsolete ones;
• we set up new monitoring tools to monitor the performance of computers and com-
puter networks;
• in the context of all the distribution companies we have produced a joint security
policy;
• by means of an external contractor we made procedures for continuity of operations
for the entire company;
• we provided all the infrastructure services and support to the subsidiary E3, d. o. o.
Let us state a few other major services for the market we have carried out in 2014:
• cable conduit 20 kV in tunnel Markovec,
• SPTE Fructal,
• reconstruction of TP for company SKP KNAUF in Ajdovščina,
• preparation of project documentation for cable conduit 110 kV Koper–Izola,
• cable conduit and TP for company MOL in Rožna Dolina,
• cable conduit 20 kV for TP Martex 2,
• electrical installation work on the project CČN in Vrtojba,
• maintenance of public lighting in municipality of Izola,
• maintenance of public lighting in municipality Postojna,
• electrical installation work on the project SPTE Park 1,
• electrical installation work for TP Riba.
Framework of these services also includes operation of holiday facilities.
Type of work Plan(€) Realization(€) Realization(€) % %
January–December 2014
January–December 2014
January–November 2013
2 : 1 2 : 3
1 2 3 4 5
206 Market services 1,950,000 1,745,756 1,705,928 89,53 102,33
12 Other services 450,000 718,205 866,637 159,60 82,87
TOTAL 2,400,000 2,463,961 2,572,565 102,67 95,78
Table 18: Realization of services for external customers in year 2014
A A56 57
Business Report | 11. Integrated Management System Business Report | 12. Skrb za okolje
Integrated management system includes quality management system, environment man-
agement system and management system of safety and health at work. System consists
of interconnected processes, which Elektro Primorska uses to:
• provide quality services and customer satisfaction, and pursue development poli-
cies,
• care for the development of employees, their safety, health and satisfaction,
• reduce negative impacts on the environment and contribute to the development of
narrower and broader social environment.
Elektro Primorska has an established and certified integrated management system for
the following standards:
• Quality Management System – ISO 9001:2008,
• Environmental Management System – ISO 14001:2004 in
• Management System for Safety and Health at Work – BS OHSAS 18001:2007.
Integrated quality management system is managed through the structure of formalized
documents: a) rules of quality management, b) definition of processes, c) management
processes, d) instructions, e) forms. Quality of processes implementation is monitored
by quality indicators. Effectiveness of the integrated management system is regularly
checked by internal and external audits.
Requirements for improvements in the integrated management system are managed by
a special program that enables employees to communicate any ideas, comments and
suggestions for better business organization and other activities in the company. This
system also includes risk management.
Verification of the integrated management system took place in 2014 as planned by in-
ternal audits and annual reviews: environmental review, review of safety and health at
work, and management review. Internal audits of quality management system, environ-
ment management system and the system of safety and health at work were conducted
from April 23 to April 24 2014. On May 28 and May 29 2014 external assessment com-
pany SIQ conducted a regular external assessment of requirements of ISO 9001:2008
standard and reassessment of requirements of ISO 14001:2004 standard and BS OHSAS
18001:2007 standard, and it made findings that the company implements, maintains and
develops the management system in accordance with the requirements of the standards.
12.1. Environmental policy Environmental policy is an important component of the company's business policy and is
integrated into all business processes. Our business and our facilities intervene into the
space and its intended use, so with the established environmental management system
we manage the significant environmental aspects associated with the activity of electric-
ity transmission, maintenance and construction of facilities, the operation of electricity
metal workshops and vehicle fleet. By adopting environmental programs in accordance
with the financial capabilities of the company we realize framework and implementing
environmental objectives.
12.2. Realization of environmental programs in year 2014In 2014 in accordance with the set environmental objectives we implemented the follow-
ing activities of environmental programs:
• we replaced asbestos cement roofing on RP Bovec,
• we reduced light pollution in RP Bovec, service premises Kromberk and service
premises and inspectorate in Tolmin
• we replaced ionization fire detectors with optical detectors in distribution transform-
er stations RTP Lucija and RTP Vrtojba.
Risks are managed in accordance with the methodology of integrated risk management
in Elektro Primorska. Identified risks are classified in accordance with the methodology
for managing risks in one of the four groups that are included in the risk register: financial,
operational, strategic and legislative. Risks are evaluated at least monthly on the basis
of assessing the implications of the risk and on the basis of the likelihood that a risk will
occur. These risks are managed in the following ways: risk avoidance – abandonment
of risky operations; risk reduction – use of different hedging, transferring risk to a third
party; acceptance of risk – accepting the risk that is acceptable. In order to continuously
identify risks primarily responsible are the heads of organizational units and other author-
ized expert staff.
11. Integrated Management System
12.Care for the Environment
13.Risk Management
A A58 59
Business Report | 13. Risk Management Business Report | 13. Risk Management
Reporting on the status of individual risks or measure is carried out through the portal
- monthly, quarterly and annually. Internal audit supervises the implementation of the
measures and compliance of the reported with the actual situation. Reporting and risk
control are an integral part of the integrated management system in the company. For a
systematic display of the degree of all risks on the cut-off date, total average rate of all
the risks (average of the sum of all risk levels of all groups) has been introduced. In year
2014 the value decreased from the baseline 3.17 to 2.89. For all measures that exceed
the acceptable level of risk 3.00, new measures, contractors and deadlines for implemen-
tation were determined. These measures are being implemented.
In 2015 we will include in the risk management system, also risks arising from the busi-
ness continuity process.
13.1. Financial risks Financial risks of the company represent those risk factors that directly threaten the
achievement of planned income statement and capital adequacy. Significant risks are:
credit, liquidity, market.
Credit risk arises because of untimely settled receivables. Systematic monitoring of
debtors' financial position and use of applications for enforcement to recover the debts
lower the credit risk of the company.
Liquidity risk is directly related to the credit risk. With cash flow planning company man-
ages liquidity risk by adjusting expenditure to financial capacity, draws bridging loans
and plans the dynamics of raising long-term investment loans.
Economics of investments is associated with the two stated risks, due to the eventual
exceeding of the value of investments and due to the deviation of specific planned values
for the type investment solutions.
Market risk arises from failure to achieve services for the market, which affects the cash
flow.
Interest rate risks are associated with the possibility of unexpected increases in financing
costs, which are tied to a variable interest rate based on market conditions. Company
minimizes interest rate risk by selecting the best bidder when borrowing.
Company is not faced with currency risks due to the limited sectoral operation.
13.2. Operational risks Operational risks are related to the implementation of business processes in the com-
pany. In the past the company modernized and certified its business processes in ac-
cordance with the standards of quality management system ISO 9001, environmental
management system ISO 14001 and system of health and safety at work BS OHSAS
18001. Indirectly, by complying with the provisions of standards the potential risks of
the operation are reduced. In this field, we are facing human resource risk, risks in the
operation of the system and the IT risk.
Human resources risks are associated with the possibility of loss or lack of qualified
staff and the emergence of work-related injuries arising from risky working practices in
the business of power distribution. The risk is managed through scholarships, constant
training of employees, encouraging further education, communication and information to
all employees, liability insurance of employees in the implementation of design, assembly
and maintenance work, and collective accident insurance of employees. We continuously
improve the safety and health at work, which reduces the risk of injury at work and main-
taining the health of employees.
Risks associated with the system operation are related to ensuring the broadest pos-
sible availability of facilities, which we ensure with regular planning, construction and
maintenance, by implementing activities (reviews, audits, measurement) with the aim of
preventing the failure of electricity power plants and the occurrence of major damage to
the device. Property risk arises from exposure of electrical installations and other assets
of the company to environmental influences and other threats. Risks are managed in such
a way that we have concluded adequate property insurance with insurance companies.
Information risk is associated with the operation of a computerized information system
in the company and includes the risk of data loss, unauthorized access to data, intrusion
into the system, and undisturbed operation of the system. Company has signed a con-
tract for the provision of key information services with the Informatika Company, which
provides services to other distribution companies as well. With investing each year in
equipment of the computer system, with an appropriate security policy, with the renova-
tion of the information system in collaboration with Informatika, and with the implemen-
tation of adopted measures, these risks are managed.
13.3. Strategic risks Strategic risks affect the ability to ensure an efficient and competitive continuity of com-
pany operations. Among the strategic risks the company is facing price, quantity, invest-
ment risks, and risks related to power supply interruptions of own cause.
Price risks occur in the contractual relationship between SODO and Elektro Primors-
ka, which regulates the rent of electricity infrastructure and the provision of services by
Elektro Primorska for SODO. They determine the price for rental of infrastructure and
the provision of other services. Late conclusion of the contract or annex to the contract
for the financial year represents the price risk. Price risks also arise in procurement of
materials and equipment used in investment and maintenance works. They arise from
changes in commodity prices, especially copper, and conditions on the market of electro
technical materials and equipment. During the year price risk is managed through the
implementation of the procurement of material and equipment and by signing annual
contracts for real-time supply.
A A60 61
Quantitative risks arise in the transfer of electricity through the distribution network to
customers. They arise from the uncertainty of consumption of electricity and they have
impact on revenues from network usage and, consequently, on the amount of the Com-
pany's revenue from the provision of services for SODO. Quantitative risks are managed
by the monthly monitoring of the transferred quantities of electricity through distribution
network and charged usage of the network.
Investment risks are reflected in the possibility of achieving the implementation of
planned investments. They are managed by real-time verification of realization and effec-
tiveness of the adopted plans.
Risks due to power interruption for own reason require large financial investments with
effects over a longer period. They are managed with the regular reporting on the imple-
mentation of the plan of necessary investments in infrastructure.
13.4. Legislative risks Essence of managing regulatory risks is in ensuring the functioning of the system in
accordance with regulations. Responsibility for legitimate business and compliance with
the internal workings of the company EP is specially defined. Decision-making in the EP
is limited to the framework of sectoral legislation. Regulation of the operation resulting
from the contractual obligations between SODO and Elektro Primorska, as provider of
public utility service, constitutes restrictions the company must respect and are not al-
ways economically viable.
Business Report | 13. Risk Management Business Report | 13. Risk Management
BFinancial Statements
Financial Statements | 1. Balance Sheet as at December 31 2014B64
1.Balance Sheet as atDecember 31 2014
Table 19:Balance sheet
(assets) ASSETS NOTE 31.12.2014 31.12.2013
A. Long-term assets : in EUR
I. Intangible assets 2.1. 1,914,064 837,805
1. Long-term rights 1,852,408 738,615
2. Long-term deferred development costs 19,414 99,190
3. Other LT accruals and pre-paid expenditure 1,692
4. Intangible assets in acquisition 40,550
II. Tangible fixed assets 2.2. 169,050,522 168,508,891
1. Land 5,805,301 5,795,772
2. Buildings 114,595,258 111,810,105
3. Equipment 45,831,490 47,129,861
4. Fixed assets in acquisition 2,818,473 3,773,153
III. Long-term financial investments 2.3. 7,014,088 6,994,741
1. Investments in group companies shares 6,522,017 6,522,017
2. Other shares and stakes 492,071 472,724
IV. Long-term operating receivables 2.4. 20,322 16,965
1. Long-term receivable due from others 20,322 16,965
Total long-term assets 177,998,996 176,358,402
B. Short-term assets:
I. Stocks 2.5. 965,840 858,455
1. Material 965,840 858,455
II. Short-term financial investments 2.6. 25,207 129,145
1. Short-term loans to others 25,207 129,145
III. Short-term operating claims 2.7. 7,242,753 8,220,445
1. Short-term operating claims on group companies 70,297 84,995
2. Short-term operating accounts receivable 6,678,229 7,465,500
3. Short-term operating claims on others 494,227 669,950
IV. Monetary assets 2.8. 95,222 5,034,969
Total short-term assets 8,329,022 14,243,014
C. Short-term accruals and pre-paid expenditure 2.9. 289,429 719,451
TOTAL ASSETS 186,617,447 191,320,867
Financial Statements | 1. Balance Sheet as at December 31 2014 B65
Table 20: Balance sheet (liabilities)
Breakdown of individual items and explanatory notes are part of the financial statements
and should be read in conjunction with them.
LIABILITIES NOTE 31.12.2014 31.12.2013
A. Capital: in EUR
I. Called-up capital 78,562,832 78,562,832
1. Share capital 78,562,832 78,562,832
II. Capital reserves 46,208,187 46,208,187
III. Profit reserves 11,314,699 9,071,106
1. Statutory reserves 651,328 651,328
2. Other profit reserves 10,663,371 8,419,778
IV. Revaluation surplus -41,298 42,522
V. Net profit or loss from previous periods 140,188
VI. Net profit or loss of the business year 1,481,000 2,088,679
Total capital 2.10. 137,525,420 136,113,514
B. Provisions and LT accrued costs and deferred revenues 2.11. 13,083,346 13,114,937
1. Provisions 3,284,729 3,216,790
2. Long-term accrued costs and deferred revenues 9,798,617 9,898,147
C. Long-term liabilities 2.12. 20,310,659 20,517,977
I. Long-term financial liabilities 20,310,659 20,517,977
1. Long-term financial liabilities to banks 20,310,659 20,517,977
Č. Short-term liabilities 2.13. 15,066,751 20,935,644
II. Short-term financial liabilities 7,803,318 10,929,030
1. Short-term financial liabilities to banks 7,803,318 10,927,973
2. Other short-term financial liabilities 1,057
III. Short-term operating liabilities 7,263,433 10,006,614
1. Short-term operating liabilities to group companies 38,387 87,220
2. Short-term operating liabilities to suppliers 5,817,414 7,600,323
3. Other short-term operating liabilities 1,407,632 2,319,071
Total liabilities 48,460,756 54,568,558
D. Short-term accrued costs and deferred revenues 2.14. 631,271 638,795
TOTAL LIABILITIES 186,617,447 191,320,867
B66
2.Profit and Loss Account for Year Ended as at December 31 2014
Table 21:Profit and loss
account
Breakdown of individual items and explanatory notes are part of the financial statements
and should be read in conjunction with them.
NOTE 2014 2013
in EUR
1. Net sales revenue 3.1. 38,391,026 40,807,348
a. on domestic market 38,391,026 40,807,348
2. Capitalized own products and services 3.1. 6,098,307 6,300,696
3. Other operating revenues 3.1. 3,925,150 1,647,952
4. Costs of goods, material, and services 3.2. -16,939,400 -16,401,697
a. Costs of goods sold and material used -10,312,114 -8,971,667
b. Costs of services -6,627,286 -7,430,030
5. Labor costs 3.2. -15,539,166 -15,139,882
a. Costs of salaries -11,391,828 -10,892,670
b. Costs of additional pension insurance of employees -566,045 -575,110
c. Social security costs -1,856,986 -1,790,765
č. Other labor costs -1,724,307 -1,881,337
6. Amortization/depreciation expense 3.2. -11,642,503 -11,397,832
a. Depreciation -10,745,484 -11,009,697
b. Operating expenses from revaluation in intang. and tang. fixed assets
-694,009 -163,021
c. Operating expenses from revaluation in current assets -203,010 -225,114
7. Other operating expenses 3.2. -176,482 -204,800
8. Financial revenues from shares 3.3. 17,299 49,656
a. In other companies 17,299 49,656
9. Financial revenues from given loans 3.3. 12,655 2,201
a. given to others 12,655 2,201
10. Financial revenues from operating claims 3.3. 44,861 68,759
a. on others 44,861 68,759
11. Financial expenses from impairments and financial invest-ment write-offs
3.4. -2,799
12. Financial expenses from financial liabilities 3.4. -872,883 -789,933
Financial expenses from loans, received from banks -803,109 -743,413
Financial expenses from operating liabilities -69,774 -46,520
13. Financial expenses from operating liabilities 3.4. -5,058 -4,880
a. Financial expenses from liab. to suppliers and bill of ex-change l.
-4,568 -4,591
b. Financial expenses from other operating liabilities -490 -289
14. Other revenues 3.5. 3,465 3,346
15. Other expenses 3.6. -78,657 -65,782
NET PRE-TAX PROFIT OR LOSS OF THE ACCOUNTING PERIOD 3,238,614 4,872,353
16. Income tax 3.7. -425,011 -694,996
17. NET PROFIT OR LOSS OF THE ACCOUNTING PERIOD 3.8. 2,813,603 4,177,357
B67
3. Statement of Comprehensive Income For Year Ended as at
December 31 2014
Table 22:Statement of comprehensive income
Pojasnilo 2014
in EUR
17. Net profit or loss of the accounting period 3.9. 2,813,603
Changes in the surplus from the revaluation of financial assets available for sale 10,893
Other components of comprehensive income -94,713
TOTAL COMPREHENSIVE INCOME OF THE ACCOUNTING PERIOD
2,729,783
Financial Statements | 2. Profit And Loss Account for Year Ended as at December 31 2014 Financial Statements | 3. Statement Of Comprehensive Income For Year Ended As At December 31 2014
B68
4.Cash Flow Statement for Year Ended as at December 31 2014
Table 23:Cash flow statement
Breakdown of individual items and explanatory notes are part of the financial statements
and should be read in conjunction with them.
NOTE 2014 2013
A. OPERATING CASH-FLOW in EUR
1. Operating receipts 4.1. 74,769,154 73,615,181
a. Receipts from sales of products and services 49,888,228 48,441,346
b. Other operating receipts 24,880,925 25,173,835
2. Operating expenditure 4.2. -64,046,689 -58,972,237
a. Expenditure for purchase of material and services -17,441,140 -13,555,657
b. Expenditure for salaries and employees profit shares -16,326,980 -15,044,663
c. Expenditure for duties of all kinds -3,352,917 -3,806,941
č. Other operating expenditure -26,925,652 -26,564,976
3a. Excess of operating receipts or expenditure 10,722,465 14,642,944
B. CASH FLOWS IN INVESTING ACTIVITIES
4. Receipts in investing activities 4.3. 69,383 197,771
a. Receipts from received interest and profit shares of others referring to investing activities
58,761 122,962
b. Receipts from disposal of tangible fixed assets 10,622 74,809
5. Expenditure in investing activities 4.4. -10,232,657 -10,940,618
a. Expenses for acquisition of intangible assets -165,450 -831,631
b. Expenses for acquisition of tangible fixed assets -10,058,753 -10,108,987
c. Expenses for acquisition of long-term financial investments -8,454
6. Excess of expenditure in investing activities -10,163,274 -10,742,847
7a. Excess of operating and investing receipts 559,191 3,900,097
C. CASH FLOWS IN FINANCING ACTIVITIES
8. Receipts in financing activities 4.5. 38,957,000 31,949,000
a. Receipts from long-term loans 21,060,000 9,800,000
b. Receipts from short-term loans 17,897,000 22,149,000
9. Expenditure in financing activities 4.6. -44,455,938 -30,973,726
a. Expenditure for given interest -854,493 -792,351
b. Expenditure for repayment of long-term loans -21,391,973 -7,896,063
c. Expenditure for repayment of short-term loans -20,897,000 -20,967,000
č. Expenditure for dividend -1,312,472 -1,318,312
10a. Excess of receipts or expenditure in financing activ. 975,274
10b. Excess of expenditure in financing activ. -5,498,938
11a. Total excess of receipits or expenditure 4,875,371
11b. Total excess of expenditure or expenditure -4,939,747
Č. CLOSING BALANCE OF CASH AND CASH EQUIVALENTS 95,222 5,034,969
X. OPENING BALANCE OF CASH AND CASH EQUIVALENTS 5,034,969 159,598
Y. CASH FLOW FOR THE PERIOD 4.7. -4,939,747 4,875,371
Closing balance of cash on 31.12. 95,222 5,034,969
B69
5.
Sta
tem
en
t o
f C
ha
ng
es
in E
qu
ity F
or
Ye
ar
En
de
d a
s a
t D
ec
em
be
r 3
1 2
014
Tab
le 2
4:
Sta
tem
ent
of
chan
ges
in e
qui
ty
2014
Exp
lana
tory
not
es a
re p
art
of t
he fi
nanc
ial s
tate
men
ts a
nd s
houl
d b
e re
ad in
con
junc
tion
with
the
m.
2014
CA
LLE
D-U
P
SH
AR
E C
AP
ITA
L
P
RO
FIT
RE
SE
RV
ES
Pre
nese
ni č
isti
p
osl
ovn
i izi
dN
ET
PR
OFI
T O
R L
OS
S
OF
THE
BU
SIN
ES
S
YE
AR
CA
PIT
AL
RE
SE
RV
ES
ST
AT
UT
OR
Y
RE
SE
RV
ES
OT
HE
R P
RO
FIT
R
ES
ER
VE
SR
EV
ALU
AT
ION
S
UR
PLU
S
NE
T P
RO
FIT
B
RO
UG
HT
FO
RW
AR
DN
ET
PR
OFI
T O
F T
HE
B
US
INE
SS
YE
AR
TO
TA
L C
AP
ITA
L
III
III/1
III/2
IVV
VI
in E
UR
A.1
. Bal
ance
as
of 3
1.12
.201
3 78
,562
,832
46,2
08,1
8765
1,32
88,
419,
778
42,5
2214
0,18
82,
088,
679
136,
113,
514
A.2
. B
alan
ce a
s of
1.1
.201
4 78
,562
,832
46,2
08,1
8765
1,32
88,
419,
778
42,5
2214
0,18
82,
088,
679
136,
113,
514
B.1
. C
hang
es in
eq
uity
cap
ital
– t
rans
acti
ons
wit
h o
wne
rs
0-1
,317
,877
-1,3
17,8
77
a) D
ivid
end
pay
men
t-1
,317
,877
-1,3
17,8
77
B.2
. To
tal c
om
pre
hens
ive
inco
me
of
rep
ort
ing
per
iod
-83,
820
2,81
3,60
32,
729,
783
a) E
ntry
of n
et p
rofit
or
loss
for
the
rep
ortin
g p
erio
d2,
813,
603
2,81
3,60
3
b) C
hang
es in
sur
plu
s fr
om fi
nanc
ial i
nves
tmen
ts r
eval
uatio
n10
,893
10,8
93
c) O
ther
item
s in
com
pre
hens
ive
inco
me
of r
epor
ting
per
iod
-94,
713
-94,
713
B.3
. Cha
nges
wit
hin
cap
ital
2,
243,
593
1,17
7,68
9-3
,421
,282
0
a) A
lloca
tion
of r
emai
ning
par
t of
net
pro
fit o
f the
com
par
ativ
e re
por
ting
per
iod
to
othe
r ca
pita
l ite
ms
2,08
8,67
9-2
,088
,679
0
b) A
lloca
tion
of p
art
of n
et p
rofit
of r
epor
ting
per
iod
to
othe
r ite
ms
of
cap
ital f
ollo
win
g th
e d
ecis
ion
of t
he m
anag
emen
t 1,
332,
603
-1,3
32,6
030
c) A
lloca
tion
of p
art
of n
et p
rofit
for
add
ition
al p
rovi
sion
ing
und
er t
he
dec
isio
n of
the
ann
ual g
ener
al m
eetin
g91
0,99
0-9
10,9
900
C. B
alan
ce a
s of
31.
12.2
014
78,5
62,8
3246
,208
,187
651,
328
10,6
63,3
71-4
1,29
80
1,48
1,00
013
7,52
5,42
0
Dis
trib
utab
le p
rofi
t 2
014
1,48
1,00
01,
481,
000
Financial Statements | 4. Cash Flow Statement For Year Ended As At December 31 2014 Financial Statements | 5. Statement Of Changes in Equity For Year Ended as at December 31 2014
B70
6.
Sta
tem
en
t O
f C
ha
ng
es
In E
qu
ity F
or
Ye
ar
En
de
d A
s A
t D
ec
em
be
r 3
1 2
013
Tab
le 2
5:S
tate
men
t of
ch
ange
s in
eq
uity
20
13
2013
Sha
re c
apit
alC
apit
al r
eser
ves
Sta
tuto
ry r
e-se
rves
Oth
er p
rofi
t re
serv
esR
eval
uati
on
surp
lus
Net
pro
fit
bro
ught
fo
rwar
dN
et p
rofi
t o
f th
e b
usin
ess
year
To
tal c
apit
al
III
III/1
III/2
IVV
VI
in E
UR
A.1
. Bal
ance
as
of 3
1.12
.201
278
,562
,832
46,2
08,1
8765
1,32
86,
331,
100
34,7
253,
517
1,45
4,54
713
3,24
6,23
6
A.2
. B
alan
ce a
s of
1.1
.201
3 78
,562
,832
46,2
08,1
8765
1,32
86,
331,
100
34,7
253,
517
1,45
4,54
713
3,24
6,23
6
B.1
. C
hang
es in
eq
uity
cap
ital
– t
rans
acti
ons
wit
h o
wne
rs
-1,3
17,8
76-1
,317
,876
a) D
ivid
end
pay
men
t-1
,317
,876
-1,3
17,8
76
B.2
. To
tal c
om
pre
hens
ive
inco
me
of
rep
ort
ing
per
iod
7,
797
4,17
7,35
74,
185,
154
a) E
ntry
of n
et p
rofit
or
loss
for
the
rep
ortin
g p
erio
d4,
177,
357
4,17
7,35
7
b) C
hang
es in
sur
plu
s fr
om fi
nanc
ial i
nves
tmen
ts r
eval
uatio
n7,
797
7,79
7
B.3
. Cha
nges
wit
hin
cap
ital
2,
088,
678
1,45
4,54
7-3
,543
,225
0
a) A
lloca
tion
of r
emai
ning
par
t of
net
pro
fit o
f the
com
par
ativ
e re
por
ting
per
iod
to
othe
r ca
pita
l ite
ms
1,45
4,54
7-1
,454
,547
0
b) A
lloca
tion
of p
art
of n
et p
rofit
of r
epor
ting
per
iod
to
othe
r ite
ms
of
cap
ital f
ollo
win
g th
e d
ecis
ion
of t
he m
anag
emen
t 2,
088,
678
-2,0
88,6
780
C. B
alan
ce a
s of
31.
12.2
013
78,5
62,8
3246
,208
,187
651,
328
8,41
9,77
842
,522
140,
188
2,08
8,67
913
6,11
3,51
4
Dis
trib
utab
le p
rofi
t 2
013
140,
188
2,08
8,67
92,
228,
867
Cal
led
-up
cap
ital
P
rofi
t re
serv
esN
et p
rofi
t o
r lo
ss
fro
m p
revi
ous
p
erio
ds
Net
pro
fit
or
loss
o
f th
e b
usin
ess
year
B71
7.Indicators
7.1. Main indicators of financing (investing)
7.2. Main investment indicators (investing)
Indicators of financing show the financing structure of the company and express the
degree of the company's financial independence.
These indicators are used to establish where the company invested its assets and what
structure of assets it has according to these investments.
Seq. No
Description 2014 2013 2012 2011 2010 2009 2008
1. equity financing rate capital / liabilities
0,737 0,711 0,717 0,697 0,650 0,622 0,660
2. long-term financing rate capital , long-term debts and long-term provisions/ liabilities
0,916 0,887 0,889 0,868 0,813 0,804 0,822
3. debt financing rate debts / liabilities
0,260 0,285 0,274 0,297 0,350 0,370 0,329
Table 26:Main indicators of financing
Table 27:Main investment indicators
Seq. No
Description 2014 2013 2012 2011 2010 2009 2008
1. operating fixed assets rate fixed assets / assets
0,906 0,881 0,908 0,899 0,820 0,805 0,826
2. Financial investment rateLong-term and short-term financial invest-ments/assets
0,038 0,037 0,038 0,037 0,008 0,008 0,008
3. long-term assets ratefixed assets, long-term financial invest-ments and l.t. oper. claims / assets
0,944 0,917 0,946 0,936 0,828 0,813 0,835
Financial Statements | 6. Statement Of Changes In Equity For Year Ended As At December 31 2013 Financial Statements | 7. Indicators
B72
7.4. Main indicators of economy
Indicators of economy are indicators of business success and explain business results
in relation to the invested elements of the business process.
Table 29:Main indicators of
economy
7.3. Main horizontal financial structure indicators
These indicators show how individual categories of assets are financed and how the
company is able to settle its short-term financial liabilities.
Table 28:Main horizontal
financial structure indicators
Seq. No
Description 2014 2013 2012 2011 2010 2009 2008
1. equity to operating fixed assets capital / fixed assets
0,814 0,808 0,789 0,776 0,792 0,773 0,800
2. immediate solvency ratioliquid assets / short-term liabilities
0,006 0,240 0,008 0,036 0,005 0,112 0,044
3. quick ratioliquid assets and short-term claims / short-term liabilities
0,487 0,633 0,377 0,331 0,795 0,872 0,911
4. current ratioshort-term assets / short-term liabilities
0,553 0,680 0,429 0,393 0,837 0,913 0,961
Seq. No
Description 2014 2013 2012 2011 2010 2009 2008
1. operating efficiency ratio operating revenues / operating expenses
1,093 1,130 1,091 1,060 1,015 1,002 1,028
2. entire efficiency ratio revenues / expenses
1,072 1,111 1,074 1,040 1,018 1,003 1,011
B73
7.5. Main indicators of return
By analyzing the ratio of profitability we establish that company's operation
is viable due to a positive operating result.
Table 30: Main indicators of return
Seq. No
Description 2014 2013 2012 2011 2010 2009 2008
1. level of revenue profitability net profit or loss / sale revenues
0,073 0,102 0,073 0,039 0,018 0,003 0,012
2. ROA net profit or loss / average assets
0,015 0,022 0,016 0,008 0,010 0,002 0,007
3. ROE (%)net profit or loss / average capital (excl. net profit or loss of business year)
0,021 0,031 0,022 0,012 0,016 0,003 0,011
Financial Statements | 7. Indicators Financial Statements | 7. Indicators
C Notes to the Financial Statements According to
the Companies Act snd Slovenian Accounting
Standards
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards1. Basis for Preparation of Financial Statements
C76
1.Basis for Preparation of Financial Statements
Financial statements have been prepared in accordance with Slovenian Accounting
Standards (SRS) 2006, Energy Act (Official Gazette RS Nos. 27/07, 70/08 in 22/10) and
Companies Act (ZGD-1).
SAS 2006 prescribe accounting policies and, in some cases, allow a choice between per-
missible accounting policies. In its Accounting Rules the Company defined in detail the
accounting treatment of balance sheet items in the accounting records and determined
the applicable accounting policies.
In accordance with Article 19 of the Act amending the Companies Act (new Article 46. a)
revenue and costs are adjusted for the regulated period backward based on the eligibility
criteria, which were produced and are monitored by the Agency for Energy. Compliance
with the Energy Act in this part, which corrects the revenue and cost backward, is con-
sidered a deviation from the Slovenian Accounting Standards.
In the operation of the Company July 1 2007 plays an important role. On this day, Elektro
Primorska d. d. lost the status of a public company and since then operates only as a
limited company. With a decision of the Government of RS on the concession for the pro-
vision of public service activities of the distribution system operator for the entire territory
of the Republic of Slovenia it granted the exclusive concession to a newly established
company SODO based in Maribor.
According to the decree on the implementation of the activity of the system operator
SODO company concluded a contract on the lease of electricity distribution infrastruc-
ture and provision of services for the system operator of the electricity distribution net-
work with Elektro Primorska as the owner of the distribution infrastructure in the area of
Elektro Primorska. Contract defines that Elektro Primorska:
• leases infrastructure for rent determined annually with annexes to the contract,
• implements services for SODO and charges for services described in the annex to
the contract,
• in the name and for the account of SODO purchases electricity for losses incurred
on the network,
• in the name and for the account of SODO issues invoices to end users of the distri-
bution network accounts for the network use,
• in the name and for the account of SODO charges the network charge for power
consumption.
On February 27 2012 a new lease contract on the electricity infrastructure and provision
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards1. Basis for Preparation of Financial Statements
C77
of services for electricity distribution system operator was concluded with SODO Com-
pany, which has been used since January 1 2011. Contract also contains provisions re-
lating to the preliminary settlement of regulatory year. Based on this, the company in the
income statement for year 2014 considered the final settlement of regulatory year 2013
(negative in the amount of 7,984 EUR) and preliminary settlement of year 2014 (positive
in the amount of 258,473 EUR).
On October 29 2012 the Official Gazette of RS No. 81/2012 published Act determining
the methodology for charging for the network charge, the methodology for setting the
network charge, and the criteria for establishing eligible costs for electricity networks
with Annex 1: Implementation criteria and parameters for determining network charges
for electricity network and identifying the eligible costs for the regulatory period 1. 1.
2013–31. 12. 2015.
Based on this Act the Energy Agency on November 15 2012 with a decision No. 111-
13/2012-01/452 determined the regulatory framework for the distribution network system
operator SODO for the regulatory period from January 1 2013 to December 31 2015.
In the decision, the eligible costs, broken down by individual regions of the distribution
network are planned.
Planned eligible costs in the area of the distribution network of Elektro Primorska provide
a framework of company assets in each year of the regulatory period.
On December 16 2013 the Council of Energy Agency adopted the Act amending the Act
determining the methodology for charging for the network charge, the methodology for
setting the network charge, and the criteria for establishing eligible costs for electricity
networks. Act applies from 1 January 2014.
Price list of services for external customers changed in October 2013.
Wind farm Volovja reber
On June 26 2006 the Ministry of Environment and Spatial Planning (MOP), Slovenian
Environment Agency (ARSO), issued an environmental consent to Elektro Primorska d.
d. for the construction of wind farms on Volovja reber and associated infrastructure. On
February 19 2007, Elektro Primorska d. d. on the basis of this consent obtained a partial
building permit, which has become final on March 27 2007. At the request of Elektro Pri-
morska the validity of the building permit was extended until March 27 2012.
When the Ministry of Environment and Spatial Planning in 2007 recognized the status
of a participant in the process of issuing the environmental consent for the construction
of wind farms and associated infrastructure to the Society for Observation and Study of
Birds of Slovenia (DOPPS), the process of issuing the environmental consent was reno-
vated ex officio, while the implementation of environmental consent was withheld at the
same time.
In a renewed process of issuing the environmental consent ARSO left the issued envi-
ronmental consent in force, while MOP rejected an appeal DOPPS against the confirmed
C78
environmental consent. DOPPS filed an action against the decision of the Environmental
Agency with the Administrative Court in Ljubljana, which granted the action by judgment
as at March 3 2011 and remanded the case for reconsideration procedure to ARSO. On
December 19 2011 ARSO in a new decision in the renewed procedure performed oral
hearing and on April 4 2012 issued a decision confirming the validity of the environmental
consent of June 26 2006.
In accordance with the building permit to build wind farms on Volovja reber Elektro Pri-
morska d. d. began with the implementation of works for the construction of the connec-
tion point 110 kV power line RTP Ilirska Bistrica-RTP Volovja reber in distribution trans-
former station RTP Ilirska Bistrica. With this, the company prevented the construction
permit as at March 27 2012 to expire.
After DOPPS appeal against the decision of the Environmental Agency of April 4 2012,
the Ministry of Agriculture and Environment RS on December 21 2012 issued a decision,
annulling the decision of the Environmental Agency of April 4 2012, and remanded the
case to ARSO for reconsideration procedure and decision-making. On May 6 2013 ARSO
issued a new decision no. 35402-11/2004-328, which abolished the environmental con-
sent from the year 2006. Company Elektro Primorska appealed to the issued decision.
But the Ministry of Agriculture and the Environment of RS as a body of appeal rejected
the appeal from EP with the decision no. 35402-29/2013/2 as at December 4 2013.
As a result, Elektro Primorska on October 21 2013 signed an agreement with the Munici-
pality of Ilirska Bistrica, which defines the termination of the agreement from 2007 and the
abolition of all obligations of Elektro Primorska d.d. to the Municipality of Ilirska Bistrica,
which has been identified for the event of the construction of wind farms Volovja reber.
Construction license:
• it was obtained based on the Environmental approval for the construction of wind
farm and associated infrastructure on Volovja reber as at June 26 2006,
• partial building permit as at February 19 2007 was extended with the decision as at
November 12 2009 to March 27 2012,
• it was activated in the beginning of March 2012 by constructing the concrete foun-
dation on the land plot No. 390/15 k. o. Dobrepolje near the area of a power line
portal.
Environmental approval:
• It was issued on June 26 2006 by the Ministry of the Environment and Spatial Plan-
ning (MOP), Slovenian Environment Agency (ARSO).
• In 2007, MOP recognized the Society for Observation and Study of Birds of Slovenia
(DOPPS) the status of a participant in the procedure of issuing an environmental
permit.
• After the recognition of the right side of the participant DOPPS, the process of issu-
ing the environmental consent has been renovated ex officio, while the implementa-
tion of environmental consent was withheld at the same time.
• In the renewed procedure of issuing the environmental consent ARSO left the issued
environmental consent in force, while MOP rejected an appeal of DOPPS against
the confirmed environmental consent.
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• DOPPS filed an action against the decision of the Environmental Agency with the
Administrative Court in Ljubljana, which granted the action by judgment as at March
3 2011 and remanded the case for reconsideration procedure of ARSO.
• On April 4 2012 ARSO issued the decision that confirmed the validity of environmen-
tal approval as at June 26 2006.
• According to DOPPS appeal against the decision of the Environmental Agency of
April 4 2012, the Ministry of Agriculture and Environment RS on December 21 2012
issued a decision, annulling the decision of the Environmental Agency of April 4
2012, and remanded the case to ARSO for reconsideration procedure and deci-
sion-making.
• On May 6 2013 ARSO issued a new decision no. 35402-11/2004-328, which abol-
ished the environmental consent from the year 2006 and rejected the application
of Elektro Primorska for issuing environmental consent for the planned wind farm
Volovja reber.
• Company Elektro Primorska appealed to the issued decision of May 6 2013. But
the Ministry of Agriculture and the Environment of RS as a body of appeal rejected
the appeal from EP with the decision no. 35402-29/2013/2 as at December 4 2013.
• As a result, Elektro Primorska on October 21 2013 signed an agreement with the
Municipality of Ilirska Bistrica, which defines the termination of the agreement from
2007 and the abolition of all obligations of Elektro Primorska to the Municipality of
Ilirska Bistrica, which has been identified for the event of the construction of wind
farms Volovja reber.
• Elektro Primorska in year 2014 fully discontinued all further activities related to the
implementation of works of the partial construction permit (issued on February 19
2007), which form an integral part of the stated environmental consent from year
2006.
• Company has therefore adjusted the value of the investment in the construction of
wind farms in the amount of funds invested 829,032 EUR.
Company ended the operations in 2014 positively. It generated a net profit of 2,813,603
EUR, which is lower than planned for the year 2014 and the net profit of the previous year.
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards1. Basis for Preparation of Financial Statements
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards1. Basis for Preparation of Financial Statements
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2.Notes to the BalanceSheet Items
2.1. Intangible assets Intangible assets are recognized in the accounting records and the balance sheet when it
is probable that the economic benefits associated with them will flow in, and when their
cost can be measured reliably.
Among intangible assets the company recognizes development studies and studies in
acquiring. Among the rights there are recognized holiday facilities usage rights and land
rights, as well as right to use space in the facility for the purposes of transformer stations,
and the right to use the software. While other long-term accrued expenses and deferred
costs include costs of prepaid rent.
Cost of an intangible asset consists of its purchase value or cost of manufacture. The
Company records intangible assets using the cost model.
Value of intangible assets in 2014 increased for the purchase and activation of long-term
rights in the amount of 1,463,788 EUR.
Value adjustments of studies in obtaining are value of invested assets in connection with
the planned investment in the construction of wind farms, which the company has been
forming since 2004 because of complaints in the process of obtaining a building permit.
Developmental studies are recognized at their purchase value and written off to the bur-
den of the cost of studies and not as a depreciation expense. We write them off in the
amount of 20% annually, depending on the useful life of these assets, which is five years.
Individual carrying values of intangible assets are not significant for the financial state-
ments as a whole.
Company has no intangible assets with limited ownership rights.
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Table shows the changes in intangible assets during the year 2014:
Table shows the changes in intangible assets during the year 2013:
Table 31:Changes in intangible assets in year 2014
Table 32:Changes in intangible assets in year 2013
2014 Deferred development studies costs
Long-term rights
Other long-term accruals
and pre-paid expenditure
Intangible assets in
acquisition
Total
Acquisition cost in EUR
Balance 1.1.2014 1,244,370 1,802,468 0 1,105,017 4,151,855
Increases in year 1,710 1,504,338 1,506,048
Increases from invest. in progress 1,463,788 -1,463,788 0
Decreases in year -427,555 -18 -427,573
Balance 31.12.2014 816,815 3,266,256 1,692 1,145,567 5,230,330
Value adjustment
Balance 1.1.2014 1,145,180 1,063,853 0 1,105,017 3,314,050
Depreciation in year 79,776 349,995 429,771
Decreases in year -427,555 -427,555
Balance 31.12.2014 797,401 1,413,848 0 1,105,017 3,316,266
Carrying amount
Balance 1.1.2014 99,190 738,615 0 0 837,805
Balance 31.12.2014 19,414 1,852,408 1,692 40,550 1,914,064
2013 Deferred development studies costs
Long-term rights
Intangible assets in
acquisition
Total
Acquisition cost in EUR
Balance 1.1.2013 1,466,478 1,090,020 1,105,017 3,661,515
Increases in year 712,448 712,448
Increases from invest. in progress 712,448 -712,448 0
Decreases in year -222,108 -222,108
Balance 31.12.2013 1,244,370 1,802,468 1,105,017 4,151,855
Value adjustment
Balance 1.1.2013 1,216,573 772,553 1,105,017 3,094,143
Depreciation in year 150,715 291,300 442,015
Decreases in year -222,108 -222,108
Balance 31.12.2013 1,145,180 1,063,853 1,105,017 3,314,050
Carrying amount
Balance 1.1.2013 249,905 317,467 0 567,372
Balance 31.12.2013 99,190 738,615 0 837,805
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards2. Notes to the Balance Sheet Items
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards2. Notes to the Balance Sheet Items
C82
2.2. Tangible fixed assets Tangible fixed assets of the company are land, buildings and equipment and these assets
under construction. They are disclosed in the balance sheet at their carrying amount,
which represents the difference between the acquisition and the written down value.
Company has no investment property and evaluates the tangible fixed assets according
to the acquisition cost model.
Cost of the tangible fixed assets is comprised of its purchase price and all costs that can
be directly attributed to its restoration for use.
Acquisition cost of facilities built on its own is cost price, which does not exceed the price
of the same kind of things on market. Cost price is comprised of direct material costs
of manufacturing and services, direct labor costs and general production costs In accor-
dance with SAS 1.11 the company subdivides the purchase costs of new acquisitions
in year 2014, which have different useful lives, to component parts that are significant in
relation to the entire purchase price.
Value adjustments are established in the amount of calculated depreciation.
Company must revalue tangible fixed assets due to impairment when their carrying amo-
unt exceeds the recoverable value. Recoverable amount is the net selling price or value
in use, whichever is higher.
Changes in tangible fixed assets in 2014 are shown in the following table:
Table 33:Changes in tangible fixed assets in year
2014
2014 Land Facilities Equipment Fixed assets in acquisition and advances
Total
Acquisition cost in EUR
Balance 1.1.2014 5,795,772 371,057,021 143,281,334 4,588,724 524,722,851
Increases in year 144,111 23,705 11,599,032 11,766,848
Increases from invest. in progress 9,529 9,002,545 3,471,936 -12,484,010 0
Decreases in year -8,112,665 -2,955,604 -56,241 -11,124,510
Transfer 24,610 -24,610 0
Balance 31.12.2014 5,805,301 372,115,622 143,796,761 3,647,505 525,365,189
Value adjustment
Balance 1.1.2014 259,246,916 96,151,473 815,571 356,213,960
Depreciation in year 5,698,022 4,697,469 10,395,491
Decreases in year -7,427,304 -2,880,941 -10,308,245
Increases in year 13,461 13,461
Transfer 2,730 -2,730 0
Balance 31.12.2014 257,520,364 97,965,271 829,032 356,314,667
Carrying amount
Balance 1.1.2014 5,795,772 111,810,105 47,129,861 3,773,153 168,508,891
Balance 31.12.2014 5,805,301 114,595,258 45,831,490 2,818,473 169,050,522
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Carrying value of fixed assets compared to the opening balance increased by 541,631 EUR.
Changes consisted of new purchases in the amount of 11,766,848 EUR, depreciation in the
amount of 10,395,491 EUR, additional value adjustment of investments in the amount of
13,461 EUR and the eliminations of the carrying value in the amount of 816,265 EUR.
Value adjustments of fixed assets in acquisition, in the amount of 829,032 EUR, refer to inves-
ted assets, in relation to the planned investment in the construction of wind power plants, which
is in the process of complaints. Adjustments have been formed since 2004. In year 2014 an
adjustment was additionally formed in the amount of 13,461 EUR.
Company has no fixed assets obtained by financial lease. One property is mortgaged in favor
of Nova Kreditna Banka Maribor. Obligation is recorded in off-balance sheet.
Since July 1 2007 the public utility service in the area of Elektro Primorska d. d. has been condu-
cted by the newly established company SODO, d. o. o. In accordance with the relevant contract
the company Elektro Primorska rented SODO the entire infrastructure. As at December 31 2014
the purchase value of infrastructure given to rent amounted to 461,683,893 EUR, value adju-
stments to 315,998,276 EUR and carrying amount to 145,685,617 EUR. Of which there are by:
• 3,356,040 EUR of land,
• 98,657,148 EUR of infrastructure facilities,
• 41,880,070 EUR of infrastructure equipment and
• 1,792,359 EUR of long-term rights.
In 2013 the company realized investment plan in one hundred percent in the amount of
13,100,450 EUR. For the realization it hired a long-term loan in the amount of 7,500,000 EUR.
Detailed information on the acquisition is presented in the report on the activities of the distribu-
tion system operator in chapter 8.2.
Table 34:Changes in tangible fixed assets in year 2013
2013 Land Facilities Equipment Fixed assets in acquisition and advances
Total
Acquisition cost in EUR
Balance 1.1.2013 5,750,629 366,523,874 141,416,697 5,530,269 519,221,469
Increases in year 333,716 141,818 10,270,240 10,745,774
Increases from invest. in progress 45,143 6,285,153 4,730,413 -11,060,709 0
Decreases in year -2,085,722 -3,007,594 -151,076 -5,244,392
Balance 31.12.2013 5,795,772 371,057,021 143,281,334 4,588,724 524,722,851
Value adjustment
Balance 1.1.2013 255,540,992 94,016,693 815,571 350,373,256
Depreciation in year 5,730,588 4,987,808 10,718,396
Decreases in year -2,024,664 -2,853,028 -4,877,692
Balance 31.12.2013 259,246,916 96,151,473 815,571 356,213,960
Carrying amount
Balance 1.1.2013 5,750,629 110,982,882 47,400,004 4,714,698 168,848,213
Balance 31.12.2013 5,795,772 111,810,105 47,129,861 3,773,153 168,508,891
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards2. Notes to the Balance Sheet Items
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards2. Notes to the Balance Sheet Items
C84
2.3. Long-term financial investmentsLong-term financial investments of the Company are shares and shares in other compa-
nies and the capital of the subsidiary E 3, energetika, ekologija, ekonomija, d. o. o., which
is 100 % owned by the company.
In accordance with SAS 3, which deals with financial investments, they are classified as
assets available for sale.
Investments consist of the following items:
Investment in 11.88 % of shares in Informatika, d. d., Maribor, Company is stable. Com-
pany complied the financial investment in the company Zavarovalnica Triglav, d. d. with
the market value. Revaluation is recognized in other comprehensive income within equity
items.
Table 35:Long-term financial
investments
Table 36:Changes in financial
investments
31.12.2014 31.12.2013
Investments in shares of group companies in EUR
E3, energetika, ekologija, ekonomija d.o.o. 6,522,017 6,522,017
Total 6,522,017 6,522,017
Other shares
Informatika Maribor d.d. 240,755 240,755
Banka Koper d.d. 95,879 95,879
Zavarovalnica Triglav d.d. 55,884 44,991
Primorski tehnološki park d.o.o. 1,808 1,808
Eldom Ljubljana d.o.o. 106,395 106,395
Stelkom d.o.o. Ljubljana 57,837 57,837
VIRS 12,626 4,172
571,184 551,837
Impairment of investment Eldom d.o.o. -72,904 -72,904
Impairment of investment Stelkom d..o.o. -6,209 -6,209
-79,113 -79,113
Total 492,071 472,724
Total long-term financial investments 7,014,088 6,994,741
Investments in shares of group
companies
Other shares Total
Changes in financial investments in EUR
Balance 1.1. 6,522,017 472,724 6,994,741
Increases 19,347 19,347
Balance 31.12. 6,522,017 492,071 7,014,088
C85
2.4. Long-term operating receivables
Long-term operating receivables are assets for maintenance of facilities, which are
according to the Housing Act combined with operators of apartment buildings.
2.5. StocksStocks consist of material and small tools in the warehouse.
Stocks also include small tools with a useful life of up to one year and small tools of up to
500 EUR and the duration of over a year. These are means of protection and small tools
on the stock, which are kept off-balance according to the individual once issued in use.
Stocks are initially measured at purchase cost, consisting of purchase price and direct
acquisition costs. Purchase price is reduced by obtained discounts.
Consumption of stocks is calculated at a moving average price method.
Largest share of stocks are materials intended for the maintenance and construction of
electric power facilities and equipment. According to the previous year the stocks on the
last day were higher by 12.5 %.
Based on a comparison of the value of stocks with the latest known purchase prices, we
performed impairment of stocks in the amount of 6,463 EUR. In the last year no changes
occurred in 53,107 EUR of stock value, which represents 5.5 % of stocks that are ne-
cessary for maintenance of energy facilities and were not impaired.
Inventory differences amounted to 36 EUR, while due to uselessness during the year by
10,232 EUR of stock values were written off.
Table 37:Long-term operating receivables
Table 38:Stocks
31.12.2014 31.12.2013
in EUR
Claims to apartment building managers 20,322 16,965
Total 20,322 16,965
31.12.2014 31.12.2013
in EUR
Materials 907,395 788,906
Small tools 58,445 69,549
Total 965,840 858,455
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards2. Notes to the Balance Sheet Items
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards2. Notes to the Balance Sheet Items
C86
2.6. Short-term financial investments Financial investments are financial assets the company has in order to increase its finan-
cial revenue through income arising from it. These are investments in financial debts of
other companies.
Amount 25,207 EUR represents a short-term deposit with a bank dedicated to the recon-
struction of the building in post-earthquake reconstruction in Bovec. These assets will be
paid directly to the provider by the bank. Cost of reconstruction exceeding the amount of
the deposit is co-financed by the Government of the Republic of Slovenia.
2.7. Short-term operating receivables All receivables are initially recognized with the amounts arising from the relevant do-
cuments under the assumption that they will be paid. Receivables for which there is a
presumption that they will not be settled or are not settled in due time, are recognized as
doubtful and disputed.
Doubtful and disputed receivables include:
• outstanding claims arising before year 2014,
• disputed claims and
• receivables of business partners in the insolvency proceedings and compulsory
settlements.
Table 39:Short-term financial
investments
Table 40:Short-term
operating receivables
Short-term loans to others
in EUR
Balance 1.1. 129,145
Refunds -103,938
Balance 31.12. 25,207
31.12.2014 31.12.2013
Short-term receivables from sales: in EUR
- from group companies 69,489 56,587
- on domestic market 7,211,977 7,957,707
Value adjustment -565,061 -522,528
6,716,405 7,491,766
Interest receivables:
- from group companies 8 0
- from other buyers 78,792 83,838
Value adjustment -61,119 -55,999
17,681 27,839
Advances 13,640 2,482
Other operating receivables:
- from group companies 800 28,408
- from state and other institutions 417,432 404,736
- from employees 220,601
- from others 78,612 44,670
Value adjustment -1,817 -57
495,027 698,358
Total 7,242,753 8,220,445
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As at December 31 2014 the age structure of receivables was as follows:
• 82 % of outstanding receivables,
• 6 % of overdue receivables up to 30 days,
• 2 % of overdue receivables from 31 to 60 days and
• 10 % of overdue receivables over 60 days in the amount of 727,193 EUR, for which
by 626,180 EUR or 86 % value adjustments were formed as they are older than 365
days or disputed or debtors are in in the insolvency proceedings and compulsory
settlements.
Doubtful and disputed claims were impaired by the company according to the individual
claim and business partner. In year 2014 it thus formed by 2 % of value adjustments
according to the balance of receivables. From the value adjustment of short-term opera-
ting receivables balance in year 2014 there were by 4% of recovered and 19% of defini-
tely written off. Receivables are not insured, but most of them are of such a nature that in
the event of default, after repeated reminders, we sanction them through the termination
of access to the distribution network.
In operating receivables from state and other institutions the largest portion of claims
represent claims for the refund of overpaid tax prepayments of corporate income tax in
the amount of 212,069 EUR and claims for the recovery of non-deductible VAT in the
amount of 175,223 EUR.
Operating receivables from others are mainly receivables from the company SODO for
overpayment of network charge, claims on behalf of SODO for the connection power
network charge and for services GJS SODO and other receivables.
Table 41:Age structure of receivables
Table 42:Value adjustment of short-term operating receivables
Age structure of receivables:
31.12.2014 31.12.2013
Value adjustment of short-term operating receivables in EUR
Balance 1.1. 578,584 450,529
Collected receivables written off -21,600 -9,159
Final write-off of receivables -105,763 -52,829
Formation of value adjustments in the year 176,776 190,043
Balance 31.12. 627,997 578,584
31.12.2014 31.12.2013
in EUR
Outstanding receivables 6,052,663 6,508,902
Receivables overdue from 30 days 454,467 651,441
Receivables overdue from 31 to 60 days 125,943 310,349
Receivables overdue from 61 to 90 days 27,637 30,462
Receivables overdue from 91 to 365 days 184,995 116,977
Receivables overdue over 365 days 514,561 480,001
Total 7,360,266 8,098,132
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards2. Notes to the Balance Sheet Items
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards2. Notes to the Balance Sheet Items
C88
2.8. Monetary assetsTable 43:
Monetary assets
2.9. Short-term accruals and prepaid expenditure
2.10. CapitalCapital of the company consists of:
• share capital,
• capital reserves,
• statutory reserves,
• other profit reserves,
• revaluation surplus,
• net profit brought forward and
• net profit for the financial year.
In short-term accruals and prepaid expenditure the company recognizes VAT from recei-
ved advances and overpayments, and deferred costs from invoices received in year 2014
for expenses referring to the business year 2015.
Short-term accrued revenues refer to the preliminary account of SODO Company for rent
and services for year 2014 in the amount of 258,473 EUR, which was made in March
2015. In the same month the invoice was issued to SODO Company, and the revenues
were included in year 2014. Remaining amount of 24,814 EUR includes accrued revenues
from settlement of services to the subsidiary E 3, d. o. o., which were invoiced in year
2015, but accrued in year 2014.
Monetary assets include cash in bank accounts.
Table 44:Short-term accruals
and prepaid expenditure
31.12.2014 31.12.2013
in EUR
Cash in banks 95,222 404,969
Short-term deposit 4,630,000
Total 95,222 5,034,969
31.12.2014 31.12.2013
in EUR
VAT from received advances 2,501 1,287
Short-term deferred costs 2,697 8,451
Short-term accrued revenues 283,287 708,450
Vouchers 944 1,263
Total 289,429 719,451
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Share capital of Elektro Primorska d. d. Company is divided in 18,826,797 ordinary reg-
istered unit shares. Each share has an equal share and associated amount in the share
capital. Ordinary shares are shares that give their holders:
• right to participate in company management,
• right to profit (dividends),
• right to an adequate share of the assets after the liquidation or bankruptcy of the
company.
All shares are of one class.
Capital reserves of the company originate from general equity revaluation adjustment,
which was during the transition to SRS 2006 transformed into capital reserves.
Revaluation surplus refers to revaluation of financial investments to their fair value.
All elements of capital outside share capital belong to the owners of the share capital in
proportion to their equity share capital.
Result for the year 2014 is positive and amounts to 2,813,603 EUR. In accordance with
the powers laid down in the Companies Act-1 the management board allocated 47% of
net profit to other profit reserves in the amount of 1,332,603 EUR. Residue net profit for
2014 represents the distributable profit totaling to 1,481,000 EUR.
Following the decision of the general meeting as at July 4 2014 the company allocated
1,317,876 EUR of distributable profit in year 2013 to dividends of shareholders, while the
remaining amount of 910,991 to other profit reserves.
Book value of the company's share as at December 31 2014 amounted to 7.3 EUR.
Based on SRS 8.30 the company must disclose the profit calculated on the basis of the
revaluation for maintaining the purchasing power of capital on the basis of consumer
price index. In year 2014 it amounted to 0.2 %, therefore, in the case of revaluation of
equity net profit of the company would amount to 2,541,376 EUR.
Statement of changes in equity shows changes in equity for the years 2013 and 2014.
Table 45:Capital31.12.2014 31.12.2013
in EUR
Share capital 78,562,832 78,562,832
Capital reserves 46,208,187 46,208,187
Statutory reserves 651,328 651,328
Other profit reserves 10,663,371 8,419,778
Revaluation surplus -41,298 42,522
Net profit brought forward 140,188
Net profit for the financial year 1,481,000 2,088,679
Total 137,525,420 136,113,514
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards2. Notes to the Balance Sheet Items
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards2. Notes to the Balance Sheet Items
C90
2.11. Provisions and long-term accruals and deferred income Amount recognized as a provision is the best estimate of the expenditure required to set-
tle the existing long-term commitments on the balance sheet date. Value of the provision
must be equal to the present value of the expenditures expected to be required to settle
the obligation.
Company formed the long-term provisions for long service bonuses and for severance
pays at retirement as at December 31 2014 in accordance with SAS 10. Assumptions
based on which the actuary calculation was made, include data that companies submit-
ted to the actuary, namely the data for five past years on employees and their changes,
data on the salary growth, severance pays, long service bonus and provisions in the
collective agreement referring to the long-term benefits of the employees.
Actuarial calculation takes into account uniform discount rate by reference to market
interest rates on high-yield corporate bonds. Interest rate curve of the euro area is used
(from 0.12 % to 2.4 %).
Long-term provisions are decreased directly by costs for which settlement they were
formed, and are formed by the differences according to the actuarial report on calculation
as at December 31 of the current year and balance in the accounting records.
2.11.1. Provisions
2.11.2. Long-term accruals and deferred income
Table 46:Provisions
Table 47: Long-term accruals
and deferred income
31.12.2014 31.12.2013
PROVISIONS in EUR
Balance 1.1. 3,216,790 3,095,830
Formation 282,645 347,477
Drawing -214,706 -226,517
Balance 31.12. 3,284,729 3,216,790
Assets ac-quired free
Averageconnection
costs
Co-financing of facilities
construction
Received supports
Other Total
in EUR
Balance 1.1. 7,163,250 2,545,157 189,740 0 0 9,898,147
Formation 151,874 157,846 30,805 340,525
Decrease due to write-off -63,527 -63,527
Drawing in revenues -257,023 -110,299 -9,206 -376,528
Balance 31.12. 6,994,574 2,434,858 180,534 157,846 30,805 9,798,617
C91
In year 2014 the company formed long-term accruals and deferred income for free acquisiti-
ons of energy facilities of legal and natural persons.
Drawing of long-term accruals of fixed assets acquired free and co-financing of facility con-
structions in the amount of 266,229 EUR represents the amount of annual depreciation, whi-
ch is calculated from individual freely acquired or co-financed in share fixed asset.
Average costs of connection are drawn for the actual charged depreciation for each individu-
al energy facility. Depreciation of these facilities amounted to 110,299 EUR.
In 2014 the company received state support for the earthquake reconstruction of the facility
in Bovec in the amount of 30,491 EUR and support from the European Union to the project
SUNSEED. These two projects have not yet been completed in year 2014.
2.12. Long-term liabilities Long-term financial liabilities are long-term borrowings for investment.
Their book value is equal to their initial value, reduced by transfers to short-term liabilities.
Interests on long-term liabilities are recorded as financial expenses or increase the cost of
fixed assets in preparation to its working condition.
Long-term financial liabilities are secured by bills and represent borrowings that fall due after
2015. For all loans the Ministry of Finance issues consent to the borrowing of the company,
after the most favorable bidder was previously approved or selected.
All loans are due and payable no later than April 2020. Long-term loan taken out in 2014 in the
Sparkasse Bank in the amount of 7,500,000 EUR, is payable in a period longer than 5 years
(contractually agreed installments falling due in the period of 5 years amount to 500,000 EUR).
Interest rates have a one-month, three-month or six-month EURIBOR and the bank's premium
range from 1.5 % to 3.2 %. Interest on borrowings is calculated and paid monthly.
Table 48:Long-term liabilities 31.12.2014 31.12.2013
Long-term liabilities in EUR
BKS Bank AG 8,400,000
SKB d.d. 9,669,328 14,513,331
Banka Sparkasse d.d. 7,500,000 1,270,966
Banka Celje d.d. 1,211,315 3,028,320
Nova Ljubljanska banka d.d. 1,333,333 9,633,333
Total 28,113,976 28,445,950
Short-term part of long-term liabilities -7,803,317 -7,927,973
Total 20,310,659 20,517,977
Total long-term liabilities 20,310,659 20,517,977
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards2. Notes to the Balance Sheet Items
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards2. Notes to the Balance Sheet Items
C92
2.13. Short-term liabilitiesShort-term liabilities are disclosed separately for short-term financial liabilities and shor-
t-term operating liabilities.
Short-term liabilities to banks include installments of long-term loans falling due in 2015.
Operating liabilities decreased compared to the previous year by 2,743,180 EUR. Liabiliti-
es to suppliers reduced by 1,784,535 EUR, while to employees by 370,423 EUR.
Short-term liabilities to employees include liabilities for the December payroll.
Liabilities to the state consist of liabilities for the value added tax and liabilities to the state
and other institutions from payroll.
Table 49:Short-term liabilities
31.12.2014 31.12.2013
SHORT-TERM FINANCIAL LIABILITIES in EUR
Short-term part of long-term loans 7,803,317 7,927,973
SKB d.d. 3,000,000
Total short-term fin. liabilities to banks 7,803,317 10,927,973
Liabilities for payment of dividends 1,057
Total short-term financial liabilities 7,803,317 10,929,030
SHORT-TERM OPERATING LIABILITIES
Liabilities to group companies 23,336 24,963
Liabilities to suppliers 5,773,680 7,575,569
Liabilities for advances 43,735 24,754
Total short-term operating liabilities to suppliers 5,840,751 7,625,286
Liabilities to employees 15,051 62,257
Liabilities to state and other institutions 1,190,055 1,560,478
Liabilities to state and other institutions 112,712 756,667
Other liabilities 104,865 1,926
Total other short-term operating liabilities 1,422,683 2,381,328
Total short-term operating liabilities 7,263,434 10,006,614
TOTAL SHORT-TERM LIABILITIES 15,066,751 20,935,644
C93
2.14. Short-term accrued costs and deferred revenues
Short-term accrued costs and deferred revenues disclose VAT from advances given.
Short-term deferred revenues are formed for the surplus of funds received for the years
2010 and 2011 on the basis of settlement for the regulatory year under the contract
between the two companies SODO and Elektro Primorska in the amount of 97,471 EUR.
Accrued expenses include accrued bonus at the end of the year on the basis of the
collective agreement in the amount of 268,326 EUR. Final profit of the company was
recognized only in the middle of March 2015, when company SODO sent a preliminary
settlement for 2014. Advance payment of bonus has already been calculated and paid,
while the difference to the final amount was included in the costs of year 2014, because
the company is obliged to pay it based on the agreement between the company mana-
gement and the trade union.
Among accrued expenses there are also recognized costs of purchasing the losses in the
amount of 247,754 EUR for 2014, for which the company will receive the final calculation
in 2015.
Table 50:Short-term accrued costs and deferred revenues
31.12.2014 31.12.2013
in EUR
VAT from advances given 345 378
Short-term deferred revenues 97,471 196,750
Accrued expenses 533,455 441,667
Total 631,271 638,795
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards2. Notes to the Balance Sheet Items
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards2. Notes to the Balance Sheet Items
C94
3.Notes to the Profit andLoss Account
Company comprises the statement of profit and loss, as defined under SAS 25, accor-
ding to version I.
Revenue is recognized if increases in economic benefits during the accounting period are
associated with increases in assets or decreases in liabilities, and those increases can be
measured reliably. Revenues and increases of assets or decreases in liabilities shall thus
be recognized simultaneously.
Company achieved revenues:
• from electricity for losses,
• from rent,
• sale of services,
• capitalized own products and services,
• other operating revenues,
• financial revenues and
• other revenues.
Use of electricity network is charged to business customers through a special account
based on the amount of transmitted energy and capacity charges. Company charges for
the use of the energy network and DVE and SPTE contributions to its customers in the
name and on behalf of SODO, d. o. o., in the framework of the services they perform for
this company.
Revenues from the sale of services include electrical installation services and maintenan-
ce of equipment owned by clients. Their volume depends on customer orders. Revenues
in 2014 were evaluated in accordance with the price list of services of complementary
activity, which changed in October 2013. Company also provides services for network
users, which include connections and disconnections to the network, replacement of fu-
ses and additional readings on demand, but from January 1 2013 are no longer included
in revenue of the company, but the company performs them on behalf of the company
SODO and transfers the charged funds monthly.
In its revenues the Company discloses sale of electricity from losses in the electricity
network, rent of infrastructure and services for SODO in accordance with the contract
and the annexes to the contract. Amount of funds for losses, rent and services is based
on the regulatory framework for 2014, defined by the Act determining the methodology
for charging for the network charge, the methodology for setting the network charge, and
the criteria for establishing eligible costs for electricity networks (Official Gazette of RS
C95
No. 81/2012 as at October 29 2012), which was determined by the Energy Agency and
based on a decision issued under this Act. On December 16 2013 the Council of Energy
Agency adopted the Act amending the above mentioned Act, which in certain items is
retroactive.
Based on the new contract with SODO revenues of the current year include also final
settlement of regulatory year 2013 and preliminary account of year 2014.
Revenues from capitalized own products and services result from the manufacturing do-
cumentation, construction, electrical installation and other works for the self-managed
construction of facilities.
Other operating revenue associated with business effects cover the disbursement of
accruals, revaluation operating revenue arising from the disposal of tangible fixed assets
and the repayment of impaired assets, subsidies received, and compensation received
from insurance.
Financial revenues and expenses are made out or received accounts of interest and
dividend income.
3.1. Operating revenues
Table 51:Operating revenues2014 2013
Revenues from sale of in EUR
- electricity 4,310,110 4,974,377
- infrastructure rent 15,678,046 18,149,462
- other rent 310,688 409,791
- SODO services 16,014,023 15,216,339
- other services 2,086,143 2,059,188
- settlement for past regulatory periods -7,984 -1,809
Total 38,391,026 40,807,348
Capitalized own products and services 6,098,307 6,300,696
Otheroperating revenues from:
- drawing of accruals 376,528 1,194,399
- sale of fixed assets 9,491 95,588
- collected written-off receivables 21,600 9,159
- received grants 216,106 10,125
- received compensations 3,281,068 315,807
- other operating revenues 20,357 22,874
Total 3,925,150 1,647,952
Total operating revenues 48,414,483 48,755,996
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards3. Notes to the Profit and Loss Account
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards3. Notes to the Profit and Loss Account
C96
Other operating revenues from the extraction of accruals consist of revenue from the
use of provisions for depreciation of fixed assets acquired free of charge in the amount
of 257,023 EUR, use of provisions for the average costs of connection in the amount
of 110,299 EUR, and other use of provisions for the co-financing of the construction of
energy facilities.
Revenues from sale of fixed assets represent surplus of sales over the carrying value of
fixed assets sold.
Collected written off receivables include an amount of receivables for which a value adju-
stment was formed to the charge of expenses, and which were paid in 2014.
Received grants include received state support for partial reimbursement of the costs of
using aggregates at ice damage and employment of persons with disabilities over the
required quota.
Compensations received were recognized by the insurance companies for damage to
power plants and cars. In 2014, they were higher than the previous year due to the clea-
ring of claims during ice damage.
Revenues from sales decreased by 2,416,322 EUR in comparison with the previous
year, of which revenue from electricity sold decreased by 664,267 EUR, revenues from
rents are lower by 2,570,519 EUR, while revenues from services for SODO are higher by
797,684 EUR. Revenues from other services are higher by 26,955 EUR, while settlement
for previous regulatory period is slightly lower than in the previous year.
All revenues in 2014 were achieved with sales in the domestic market.
3.2. Operating expenses Expenses are recognized if decreases in economic benefits during the accounting period
are associated with decreases in assets or increases in liabilities and such decreases can
be measured reliably. Expenses are recognized simultaneously with the recognition of
the decrease in assets or increase in debts.
Operating expenses include all expenses incurred in the financial year, recorded by natu-
re, such as costs of materials and services, labor costs, write-downs and other operating
expenses, on the basis of documents that prove that they are linked with the economic
benefits.
Operating expenses from revaluation arise upon the impairment or disposal of tangible
fixed assets and intangible assets and in relation to current assets due to their impa-
irment.
Analysis of costs by functional group does not include revaluation expenses in the amo-
unt of 897,019 EUR, which are shown in the income statement as write-offs.
C97
Cost of goods sold covers exclusively costs of electricity purchase for losses in the amo-
unt of 4,282,812 EUR, for supplies in the amount of 1,527 EUR and settlement of costs
for year 2013 in the amount of 20,341 EUR. Costs of electricity purchase for losses are
increased by the estimated value of energy undercharged by the supplier Holding Slo-
venske elektrarne, for which the company will receive a debit note in the first half of 2015.
Cost of materials represent spare parts and materials for maintenance and the elimination
of damage, the cost of materials for the installation of services to their own needs and
market (4,398,990 EUR), cost of fuel consumed (1,146,582 EUR), electricity (138,540
EUR), office supplies (50,819 EUR), small tools (245,392 EUR), and the rest the costs of
auxiliary materials.
Costs of services include costs of maintenance of fixed assets (2,223,781 EUR), cost of
health care, counseling, law and education services, as well as cost of computer pro-
grams and studies (804,545 EUR), insurance premiums and costs of banking services
(921,101 EUR), cost of computer processing (736,315 EUR), costs of telephone and pos-
tal services (456,401 EUR) and other costs related to the ordinary operations (1,485,143)
EUR.
Table 52:Analysis of costs by functional groups
Table 53:Costs by nature 2014 2013
Costs of material, goods and services in EUR
Cost of electricity sales 4,304,680 4,934,540
Cost of material 6,007,434 4,037,127
Cost of services 6,627,286 7,430,030
Total 16,939,400 16,401,697
Production costs
Sale costs General ac-tivity costs
Total
in EUR
Cost of goods 4,304,680 4,304,680
Cost of material 4,818,170 745,962 443,302 6,007,434
Cost of services 5,738,820 127,004 761,462 6,627,286
Labor costs 12,438,973 324,104 2,776,089 15,539,166
Depreciation 10,487,249 258,235 10,745,484
Other operating costs 147,533 333 28,616 176,482
Total 37,935,425 1,197,403 4,267,704 43,400,532
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards3. Notes to the Profit and Loss Account
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards3. Notes to the Profit and Loss Account
C98
Costs of services include also payments to six members of the supervisory board, which
in year 2014 amounted to 95,155 EUR. This amount includes a net payment, income tax
and contribution. The Company did not grant any loans or issued guarantees for their
liabilities to the members of the supervisory board.
Payments to members of the supervisory board in year 2014:
Other two members of the audit committee were paid a total of 12,800 EUR in year 2014.
Costs of the audit, advisory and other financial services in the amount of 76,718 EUR
include by 8,850 EUR of costs for the service of auditing the annual report.
Other labor costs include reimbursement to employees, accident insurance, social
assistance, and the costs of long-term provisions for severance pay and long-service
bonuses to employees in the amount of 118,159 EUR. Costs of annual leave bonus in
2014 amounted to 375,833 EUR.
According to the collective agreement in 2014 482 employees received a salary. Accor-
ding to the agreements, which are not subject to the tariff part of the collective agre-
ement, the salary was received by seven employees, who in 2014 received a total of
478,676 EUR (management not included).
Table 54: Remuneration of
supervisory board members
Table 55:Labor costs 2014 2013
Labor costs in EUR
Wage cost 11,391,828 10,892,670
Costs of supplementary pension insurance 566,045 575,110
Cost of contributions and other duties from salaries 1,856,986 1,790,765
Other labor costs 1,724,307 1,881,337
Total 15,539,166 15,139,882
Supervisory board member
Gross reve-nue for the accounting
year
Of which:
Bonus for performing the function in SB
Attendance fee SB
Reimburse-ment of travel
expenses
Bonus for performing the function
in AC
Attendance fee Audit
Committee
in EUR
Uroš Saksida 18,272 15,537 2,640 95
Valter Vodopivec 14,034 11,394 2,640
Matjaž Bajec 13,306 10,358 2,640 308
Dejan Kocjančič 18,946 10,358 2,640 1,007 3,885 1,056
Massimo Makovec 17,599 10,358 2,640 955 2,590 1,056
Jernej Kenda 12,998 10,358 2,640
Total 95,155 68,363 15,840 2,365 6,475 2,112
C99
Gross remuneration of members of the board, paid in the year 2014:
Bruto prejemki članov uprave, izplačani v letu 2014:
Chairman of the Management Board and employees on individual contracts were not
approved any loans or issued guarantees for their liabilities by the company.
Write-offs
Company uses the linear depreciation method. During the overall useful life of each asset
it consistently allocates its depreciable amount among the individual accounting periods
as depreciation at that time. All assets that are subject to depreciation are classified into
depreciation groups. Each group has a technical depreciable fixed period of life, from
which the depreciation rate is calculated. Fixed assets are depreciated individually.
Table below provides an overview of depreciation rates in percentages used for the cal-
culation of depreciation in 2014.
Table 56: Remuneration of the management board members
Table 57: Depreciation rates
Table 58:Write-offs2014 2013
Write-offs in EUR
Depreciation of intangible assets 349,994 291,301
Depreciation of facilities 5,698,021 5,730,588
Depreciation of equipment 4,697,469 4,987,808
Total depreciation 10,745,484 11,009,697
Revaluation expenses for:
- intangible and tangible assets 694,009 163,021
- current assets 203,010 225,114
Total revaluation expenses 897,019 388,135
Total write-offs 11,642,503 11,397,832
2014 2013
Intangible assets (excluding software) 3,33 - 20,00 3,33 - 20,00
Computer and software equipment 33,3 33,3
Properties (land and buildings) 0,00 - 5,00 0,00 - 5,00
Transformers 2,86 - 3,33 2,86 - 3,33
Electronic meters 4,17 - 6,67 4,17 - 6,67
Transport vehicles 8,33 8,33
Cars 12,5 12,5
Other tangible fixed assets 2,50 - 20,00 2,50 - 20,00
Works of art 0,00 0,00
Fixed salary Reimburse-ment of
expenses
Bonus – insurance premium
Other reve-nue and other
bonuses
Total
in EUR
Uroš Blažica 85,250 1,607 24 1,284 88,165
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards3. Notes to the Profit and Loss Account
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards3. Notes to the Profit and Loss Account
C100
Depreciation for the year 2014 was used to repay investment loans in the amount of
7,831,973 EUR, the remainder of the depreciation has been a source of investment fi-
nancing.
In year 2014 the company has by 694,009 EUR of expenses from revaluation of intangible
and tangible fixed assets as a result of inventory write-off of unserviceable assets, sales
at the lower market price than the carrying value of the asset, but in particular from the
write-off as a result of the destruction of buildings and equipment caused ice damage.
Operating expenses from revaluation of current assets in the amount of 186,314 EUR re-
late to the formed value adjustments of receivables for the use of networks and services,
and receivables for accrued interest, while in the amount of 16,696 EUR they relate to the
impairment in value of material stocks.
Among the duties, independent of profit or loss, the majority refers of the different types
of fees. Environmental protection expenditure includes compensation for the use of bu-
ilding land.
3.3. Financial revenueFinancial revenues arise in connection with financial investments and receivables in the
form of accrued interest. They are recognized when there is no doubt about their size
and collectability.
Revenues from shares are paid dividends from financial investments of Bank Koper, d.
d., and Zavarovalnica Triglav, d. d.
Interest is charged to customers using the network and services, namely from late
payments and the balance of open receivables overdue as at December 31 2014.
Table 59:Other operating
expenses
Table 60:Financial revenue
2014 2013
Other operating expenses in EUR
Provisions for claims 22,821
Total provisions 22,821
Duties, independent of profit or loss 47,409 88,176
Environmental protection expenditure 98,123 98,829
Scholarships 2,734
Rewards to learners on practice 8,129 3,970
Other 11,091
Total other expenses 153,661 204,800
Total other operating expenses 176,482 204,800
2014 2013
in EUR
Financial revenues from shares 17,299 51,857
Financial revenues from given loans 12,655
Financial revenues from operating receivables 44,861 68,759
Total 74,815 120,616
C101
3.4. Financial expenses
Financial expenses from liabilities to banks are higher than in the previous year and re-
present the bank charged interest on short-term and long-term loans. Part of the interest
of long-term loans increase the cost of investments and are not recorded in financial
expenses.
Expenses from other financial liabilities constitute interest from actuarial calculations.
3.5. Other revenue Other revenues and expenses are difficult to announce as they are not expected to occur
regularly. Company thus discloses extraordinary revenues.
Other revenues and expenses arise from events or transactions that do not occur regu-
larly and frequently.
3.6. Other expenses
Compensations are charged for damage, which were caused during the construction or
maintenance, mainly to natural persons, on their land.
Other expenses are disclosed financial aid and donations in the amount of 22,256 EUR,
offset by hundredths and other expenses not indispensable for business.
Table 61:Financial expenses
Table 62:Other revenue
Table 63:Other expenses
2014 2013
in EUR
Financial expenses from liabilities to banks 803,109 743,413
Expenses from other financial liabilities 69,774
Expenses for operating liabilities 5,058 51,400
Expenses from impairment of financial investments 2,799
Total 877,941 797,612
2014 2013
in EUR
Other revenue 3,465 3,346
Total 3,465 3,346
2014 2013
in EUR
Financial sanctions 30
Compensations 19,973 8,206
Other expenses 58,654 57,576
Total 78,657 65,782
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards3. Notes to the Profit and Loss Account
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards3. Notes to the Profit and Loss Account
C102
3.7. Corporate income taxCompany charged the income tax in the amount of 425,011 EUR.
The Company does not recognize and does not eliminate receivables and deferred tax
liabilities if the amounts of receivables and deferred tax liabilities are irrelevant for the
company both individually and jointly. Amount of claims is essential if it exceeds 1% of
the value of total assets, the amount of liabilities if it exceeds 1% of liabilities.
3.8. Net profit or loss
For business year 2014, the company income statement showed a net profit of 2,813,603
EUR. Profit before tax is by 1% lower than planned.
While compiling the annual accounts the management board of already allocated
1,332,603 EUR to other reserves from profit; the difference in the amount of 1,481,000
EUR remained unallocated.
3.9. Total comprehensive income for the period Company has the positive surplus from revaluation of financial assets available for sale in
the amount of 10,893 EUR, and the negative value of other components of comprehensi-
ve income of actuarial earnings in the amount of 94,713 EUR.
Total comprehensive income for the period is thus 2,729,783 EUR.
Table 64:Net profit or loss 2014 2013
in EUR
Operating result 4,116,932 5,611,785
Financial result -803,126 -676,996
Profit or loss from extraordinary -75,192 -62,436
Profit before tax 3,238,614 4,872,353
The tax on income of legal persons -425,011 -694,996
Net profit or loss 2,813,603 4,177,357
C103
4. Notes to the Cash Flow
Statement
Cash flow statement has been prepared using the direct method, version I. Data for the
statement of cash flows derived from records of cash receipts and payments from the
accounts of the company.
4.1. Receipts from operating activities Receipts from operating activities consist of inflows to the accounts. These are the rece-
ipts from sales of products and services and other income from operations, like costs of
network use, which company receives on the account of SODO, d. o. o., compensations,
co-financing receipts and network charge for power consumption.
4.2. Expenditure for operating activities Operating expenditure are outflows from accounts consisting of operating expenses paid
in the year such as materials, services, salaries, benefits and other outflows.
4.3. Receipts from investing activities Receipts from investing are inflows arising from interest paid and shares in profits, as well
as revenues from disposal of fixed assets.
4.4. Expenditure for investing activities Expenditures for investing are measured by outflows of invoices paid for the acquisition
of tangible and intangible assets and financial investments.
4.5. Receipts from financing activities Receipts from the financing activities are amounts remitted to the long-term and shor-
t-term loans.
4.6. Expenditure for financing activities Payments for interest, dividends and repayment of loans are expenditures for financing
activities.
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards3. Notes to the Profit and Loss Account
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards4. Notes to the Cash Flow Statement
C104
4.7. Cash flow for the period Difference between the initial cash balance and closing balance is a negative cash flow
for year 2014 in the amount of 4,939,747 EUR.
Company established net cash from operating activities. Net cash used in investing acti-
vities is a result of high investments, while net cash used in financing activities a result of
the repayment of bank loans.
5.Disclosure of Events With Related Parties
As a related party company recorded assets and liabilities of the following companies:
• E 3, d. o. o., Nova Gorica, which is 100 % owned,
• Informatika, d. d., Maribor (11.9 % share in the capital),
• Stelkom, d. o. o., Ljubljana (9.9 % share),
• JOD, d. o. o., which is 100 % owned by the subsidiary E 3, d. o. o.,
• ECO ATMINVEST, d. o. o., which is also 100 % owned by the subsidiary E 3, d. o. o.,
• Knešca, d. o. o., from Most na Soči, which is associate company of the subsidiary
JOD, d. o. o., and therefore indirectly related also to the parent company Elektro
Primorska d. d.
Elektro Primorska d. d. Company has as at 31. 12. 2014 in the balance sheet the following
receivables and payables to related companies:
Table 65: Receivables and
payables 31.12.2014 31.12.2013
Receivables: in EUR
Receivables from company E3, d.o.o. 69,929 84,995
Receivables from company Stelkom, d.o.o. 32,441 33,730
Receivables from company ECO ATMINVEST d.o.o. 368 2,198
Receivables from company Informatika d.d. 1,915
Total 104,653 120,923
31.12.2014 31.12.2013
Liabilities: in EUR
Liabilities from company E3, d.o.o. 38,387 87,220
Liabilities from Informatike, d.d. 135,485 90,778
Total 173,872 177,998
C105
In year 2014 Elektro Primorska d. d. recorded in the income statement the following re-
venues and expenses to related companies:
Management estimates that in the relationship with the parent company no transactions
were concluded, which would mean advantage or disadvantages arising from business
for any company.
Table 66:Revenues and expenses
Table 67: Contingent liabilities of the company
6.Contingent Liabilities of the Company
According to the assessment of legal experts disputes are not such as to have a signi-
ficant impact on the economic outturn. Company assesses that provisions formed for
these purposes are high enough and would cover contingent liabilities of the company.
Company keeps contingent liabilities in the off-balance sheet for a guarantee for a loan of
the subsidiary E 3, d. o. o., for the liens upon immovable property to Nova Kreditna Bank
Maribor, and issued bank guarantees for tender and for elimination of defects during
warranty period (in providing services to external customers).
2014 2013
Revenues: in EUR
Net sales E3, d.o.o. 470,071 393,860
Net sales Stelkom, d.o.o. 107,016 113,769
Net sales Knešca d.o.o. 362
Total 577,449 507,629
2014 2013
Expenses: in EUR
Costs for the purchase of materials and services E3, d.o.o. 151,339 185,118
Cost of services Informatika d.d. 991,528 939,792
Total 1,142,867 1,124,910
31.12.2014 31.12.2013
in EUR
Liabilities for guarantee 272,727 1,500,000
Liabilities from pledged property 4,671,176 4,671,176
Bank guarantees 464,613 24,215
Total 5,408,516 6,195,391
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards5. Disclosure of Events With Related Parties
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards6. Contingent Liabilities of the Company
C106
7.Events After the BalanceSheet Date
8.Notes to the Financial Statements According to Energy Act and the Companies Act
After the end of the reporting period and before the conclusion of the financial statements
there were no events that could influence the financial statements for year 2014.
In accordance with Article 38 of the Energy Act, a company must prepare accounts
specifically for the energy market activities and especially for the other activities of the
company. Individual activities are business segments that the company must, in accor-
dance with the general disclosure under the Companies Act, specifically disclose in the
annual report.
At the end of the year Elektro Primorska d. d. composes financial statements for the
company as a whole. As an annex to the notes to the financial statements it attaches
the statements in accordance with Article 38 of the Energy Act. In this respect the com-
pany must distinguish the activity of electricity supply from other activities.
Following are the criteria for:
• calculating indirect costs for the allocation to individual activities and
• criteria according to which assets, liabilities, revenues and expenses are allocated
to individual activities.
8.1. Notes to the balance sheet Balance sheets show assets and liabilities referring to the balance as at 31. 12. 2014.
Physical division of assets in a particular activity was carried out in 2001. It was done
by the company appointed group of experts from technical field in cooperation with the
financial sector.
Division of assets and liabilities of joint activities is carried out and distributed to the
individual activities according to agreed criteria on the balance sheet date. Method of
calculation of criteria is described in the report below.
C107
Amount of the share capital and capital reserves have been identified in the balance
sheet as at 31. 12. 2001 and remain unchanged. Other components of equity, reserves
and profit are changed.
In the balance sheet as at 31. 12. 2014 after the allocation of results and an unchanged
equity, receivables and liabilities are disclosed among activities that offset the sub-
balance activities and are »consolidated« in the balance sheet for the company.
8.2. Notes to the profit and loss account In the profit and loss account revenues and expenditure of the individual activity are
disclosed. These are direct revenues and expenses of each activity and revenues and
expenses of general activities distributed on the basis of agreed criteria displayed.
8.3.Criteria for allocating revenues and expenses, assets and liabilities of joint activities to individual activities
share of labor costs no. employees from working hours in activity ×100
no. of all employees from working hoursKey 1
share of current value of intangible assets and tangible fixed assets
current value of fixed assets in activity ×100
current value of all fixed assetsKey 2
share of revenuesrevenues in activity×100
all revenuesKey 3
share of material consumption consumption of material from the warehouse for activity
entire consumption of material from the warehouseKey 4
share of the cost of materials and servicesconsumption of material and services in activity ×100
entire consumption of material and servicesKey 5
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards7. Events After the Balance Sheet Date
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards8. Notes to the Financial Statements According to Energy Act and the Companies Act
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards8. Notes to the Financial Statements According to Energy Act and the Companies Act
C108
8.4. Sub-balance sheet according to the Energy Act as at 31. 12. 2014
Table 68:Sub-balance sheet
according to the Energy Act (assets))
Assets ED infrastructure and services
for SODO
Marketactivities
Total
A. Long-term assets: in EUR
I. Intangible assest 1,913,813 251 1,914,064
1. Long-term rights 1,852,210 198 1,852,408
2. Long-term deferred development costs 19,414 19,414
3. Other LT accruals and pre-paid expenditure 1,692 1,692
4. Intangible assets in acquisition 40,497 53 40,550
II. Tangible fixed assets 167,655,521 1,395,001 169,050,522
1. Land 5,116,950 688,351 5,805,301
2. Buildings 113,945,180 650,078 114,595,258
3. Equipment 45,779,371 52,119 45,831,490
4. Fixed assets in acquisition 2,814,020 4,453 2,818,473
III. Long-term financial investments 7,012,545 1,543 7,014,088
1. Investments in group companies shares 6,520,582 1,435 6,522,017
2. Other shares and stakes 491,963 108 492,071
IV. Long-term operating receivables 20,318 4 20,322
1. Long-term receivable due from others 20,318 4 20,322
Total long-term assets 176,602,197 1,396,799 177,998,996
B. Short-term assets:
I. Stocks 965,604 236 965,840
1. Material 965,604 236 965,840
II. Short-term financial investments 25,202 5 25,207
1. Short-term loans to others 25,202 5 25,207
III. Short-term operating claims 6,746,774 495,979 7,242,753
1. Short-term operating claims on group companies 1,133 69,164 70,297
2. Operating accounts receivable 6,273,514 404,715 6,678,229
3. Operating claims on others 472,127 22,100 494,227
IV. Monetary assets 91,089 4,133 95,222
Total short-term assets 7,828,669 500,353 8,329,022
C. Short-term accruals and pre-paid expenditure 288,240 1,189 289,429
Č. Claims on other activites 711,571 711,571
TOTAL ASSETS 184,719,106 2,609,912 187,329,018
Notes to the Financial Statements According to the Companies Act and Slovenian Accounting Standards8. Notes to the Financial Statements According to Energy Act and the Companies Act
C109
Table 69:Sub-balance sheet according to the Energy Act (liabilities)
Liabilities ED infra-structure and services for
SODO
Marketactivities
Total
Capital: in EUR
I. Called-up capital 78,185,730 377,102 78,562,832
1. Share capital 78,185,730 377,102 78,562,832
II. Capital reserves 45,787,692 420,495 46,208,187
III. Profit reserves 9,833,957 1,480,742 11,314,699
1. Statutory reserves 741,732 -90,404 651,328
2. Other profit reserves 9,092,225 1,571,146 10,663,371
IV. Revaluation surplus -41,289 -9 -41,298
V. Net profit or loss of the business year 1,317,879 163,121 1,481,000
Total capital 135,083,969 2,441,451 137,525,420
B. Provisions and LT accrued costs and deferred revenues 13,061,478 21,868 13,083,346
1. Provisions 3,284,007 722 3,284,729
2. Long-term accrued costs and deferred revenues 9,777,471 21,146 9,798,617
C. Long-term liabilities 20,310,659 20,310,659
I. Long-term financial liabilities 20,310,659 20,310,659
1. Long-term financial liabilities to banks 20,310,659 20,310,659
Č. Short-term liabilities 14,922,703 144,048 15,066,751
I. Short-term financial liabilities 7,803,318 7,803,318
1. Short-term financial liabilities to banks 7,803,318 7,803,318
II. Short-term operating liabilities 7,119,385 144,048 7,263,433
1. Short-term operating liabilities to group companies 36,299 2,088 38,387
2. Short-term operating liabilities to suppliers 5,675,674 141,740 5,817,414
3. Other short-term operating liabilities 1,407,412 220 1,407,632
Total liabilities 48,294,840 165,916 48,460,756
D. Short-term accrued costs and deferred revenues 628,726 2,545 631,271
E. Liabilities to other activities 711,571 711,571
TOTAL LIABILITIES 184,719,106 2,609,912 187,329,018
Pojasnila k računovodskim izkazom po ZGD in SRS | 8. Pojasnila k računovodskim izkazom po energetskem zakonu in zakona o gospodarskih družbah
C110
8.5. Profit or loss account according to the energy act for year 2014
Table 70:Profit or loss
account according to the Energy Act
Assets ED infra-structure and services for
SODO
Marketactivities
Total
in EUR
1. Net sales revenue 36,303,540 2,087,486 38,391,026
a. on domestic market 36,303,540 2,087,486 38,391,026
2. Capitalized own products and services 6,098,307 6,098,307
3. Other operating revenues 3,922,538 2,612 3,925,150
4. Costs of goods, material, and services -15,881,686 -1,057,714 -16,939,400
a. costs of goods sold and material used -9,540,776 -771,338 -10,312,114
b. costs of services -6,340,910 -286,376 -6,627,286
5. Labor costs -14,930,013 -609,153 -15,539,166
a. costs of salaries -10,950,523 -441,305 -11,391,828
b. costs of additional pension insurance of employees -553,469 -12,576 -566,045
c. social security costs -1,784,673 -72,313 -1,856,986
č. other labor costs -1,641,348 -82,959 -1,724,307
6. Amortization/depreciation expense -11,591,810 -50,693 -11,642,503
a. depreciation -10,708,262 -37,222 -10,745,484
b. operating expenses from revaluation in intang. and tang. fixed assets
-680,545 -13,464 -694,009
c. operating expenses from revaluation in current assets -203,003 -7 -203,010
7. Other operating expenses -175,737 -745 -176,482
8. Financial revenues from shares 17,295 4 17,299
a. in other companies 17,295 4 17,299
9. Financial revenues from given loans 12,652 3 12,655
a. given to others 12,652 3 12,655
10. Financial revenues from operating claims 35,437 9,424 44,861
a. on others 35,437 9,424 44,861
11. Financial expenses from financial liabilities -866,647 -6,236 -872,883
a. from loans, received from banks -803,109 -803,109
b. from other financial liabilities -63,538 -6,236 -69,774
12. Financial expenses from operating liabilities -4,609 -449 -5,058
a. from liabilities to suppliers and bill of exchange liabilities -4,163 -405 -4,568
b. from other operating liabilities -446 -44 -490
13. Other revenues 3,464 1 3,465
14. Other expenses -78,650 -7 -78,657
NET PRE-TAX PROFIT OR LOSS OF THE ACCOUNTING PERIOD 2,864,081 374,533 3,238,614
15. Income tax -360,376 -64,635 -425,011
16. NET PROFIT OR LOSS OF THE ACCOUNTINGPERIOD
2,503,705 309,898 2,813,603
C111
DBusiness Report ofElektro Primorska Group
D114
Business Report of Elektro Primorska Group | 1. Presentation of the Group D115
1.Presentation of the Group
1.1. Composition of the group Elektro Primorska group is composed of:
• Elektro Primorska d. d. as the controlling company
• E 3, d. o. o., as the controlled company in 100 % ownership of the parent com-
pany
• JOD, d. o. o., in 100 % ownership of company E 3, d. o. o.
• ECO ATMINVEST, d. o. o., in 100 % ownership of company E 3, d. o. o.
• Knešca, d. o. o., from Most na Soči, in 47.27 % ownership of company JOD,
d. o. o., as the associate company.
Consolidation includes parent company Elektro Primorska d. d., controlled companies
E 3, d. o. o., JOD, d. o. o., and ECO ATMINVEST, d. o. o., which are fully consolidated
and associate company Knešca, d. o. o., which is consolidates under the equity method.
As at December 312014 the parent company Elektro Primorska d. d. had 137,525,420
EUR of capital among the liabilities. In year 2014 it operated positively and made
2,813,603 EUR of net profit.
Controlled company E 3, d. o. o., ended the 2014 business year with a net profit in the
amount of 1,319,963 EUR. As at 31. 12. 2014 the company disclosed 13,443,877 EUR
of capital.
Company JOD, d. o. o., ended the business year with a net profit in the amount of 72,283
EUR. As at 31. 12. 2014 the company disclosed capital in the amount of 1,115,783 EUR.
Company ECO ATMINVEST, d. o. o., ended the business year with a loss in the amount
of 154,684 EUR and as at 31. 12. 2014 it disclosed negative value of capital in the amo-
unt of 244,591 EUR.
Knešca, d. o. o., operated positively in year 2014 and made 336,702 EUR of net profit. As
at 31. 12. 2014 it disclosed capital in the amount of 1,199,621 EUR.
Business Report of Elektro Primorska Group | 1. Presentation of the Group D116
1.2. Presentation of controlled companyE 3, d. o. o.Company E 3 energetika, ekologija, ekonomija, d. o. o., was established on November
15 2004. Founder and sole shareholder is Elektro Primorska d. d. Company. Basis for the
foundation of the company was the Energy act, which required legal spin-off of regulated
activities from market and production activities.
E 3, d. o. o., began with regular operations on January 1 2005. On December 3 2004 it
acquired a license for carrying out energy activities of production and trading of electri-
city.
Within the company E 3, d. o. o., is organized into three organizational units, namely:
• Department of electricity purchase and sale
• Department of production and services and
• General Service department.
On May 1 2010 the company began to pursue an economic public service activity of the
distribution system operator of heat in Šempeter – Vrtojba municipality. In accordance
with the concession agreement the company took over the heating of a residential com-
plex Podmark.
On January 1 2011 the company was merged with the spine-off part of Elektro Primor-
ska d. d. Company, which deals with the purchase and sale of electricity. Company has
Name: E 3 energetika, ekologija, ekonomija, d. o. o.
Abbreviated name: E 3, d. o. o.
Business address: Nova Gorica, Erjavčeva 24
VAT identification number: 17851262
Registration number: 2010593
Bank accounts: 04750-0001095763 Nova KBM, d. d.
02945-0259665734 NLB, d. d.
Company is registered in the Companies Register at the District Court of Nova Gorica, No. 1/04504/00.
Share capital of company: 6,522,016.72 EUR
Owner: Elektro Primorska d. d., 100 %
Company represented by: Darko Pahor
Controlled company Jod, d. o. o. 100 %
Eco Atminvest, d. o. o. 100 %
Associate company: KNEŠCA, d. o. o.
JOD, d. o. o., Nova Gorica 47,27 %
(9) fizičnih oseb 52,73 %
Business Report of Elektro Primorska Group | 1. Presentation of the Group D117
Name: KNEŠCA, d. o. o., Proizvodnja električne energije
Abbreviated name: KNEŠCA, d. o. o.
Business address: Kneža 78, Most na Soči
VAT identification number: 92002307
Registration number: 5617383
Bank account: 27000-0000204363
Company is registered in the Companies Register at the District Court of Nova Gorica, No.RC-065-2005/224.
Share capital of the company: 129,361 EUR
Owners: JOD, d. o. o. 47,27 %
Natural persons 52,73 %
Director of the company: Vincenc Hozjan
licenses for carrying out energy activities in the field of electricity production, production
and distribution of heat, and supply, trade, representation and mediation in the electricity
market.
At the end of year2014 there were 41 employees in the company, which are four employe-
es more than in the previous year.
Basic indicators of economy and return are favorable. Company operated with a net
profit in the amount of 1,319,963 EUR.
1.3. Presentation of associate company Knešca, d. o. o. In June 2006 E 3, d. o. o., Company repurchased 23.61 % share in Knešca, d. o. o.,
Company, while in July of the same year also shares of four (4) natural persons in the
amount of 23.66 % (total share of the company is 47.27 %). In year 2012 the share was
transferred as a contribution in kind to a subsidiary JOD, d. o. o.
In comparison with the other ten (9) individual owners Company JOD, d. o. o., has an
important 47.27 % share capital of Knešca, d. o. o. Company.
In year 2014 company operated positively and made 405,904 EUR of profit. It was char-
ged with 69,202 EUR of corporate income tax, and net profit of the year amounted to
336,702 EUR. As at 31. 12. 2014 capital of the company amounted to 1,199,621 EUR.
In consolidated accounts it is presented as associate company and included in the con-
solidation of the group according to the equity method in accordance with the SRS.
D118
1.4. Presentation of the controlling company JOD, d. o. o.
On August 4 2011 Company E 3, d. o. o., founded JOD, d. o. o. Company. Share capital
was paid on July 15 2011.
1.5. Presentation of the controlling company ECO ATMINVEST, d. o. o.
In September 2013 company E 3, d. o. o., bought 50 % share of the company, and in
December 2013 the remaining part.
In year 2014 company made 72,283 EUR of net profit. Company did not operate, so no
operating revenues were generated. All revenues were of financial nature, namely from
received dividends of the associated company Knešca, d. o. o.
Name: JOD, družba za inženiring in izgradnjo energetskihobjektov, d. o. o.
Abbreviated name: JOD, d. o. o.
Business address: Ulica 15. maja 15, 6000 Koper
VAT identification number: 13492233
Registration number: 6009441
Bank account: 047500001863518
Company is registered in the Companies Register at the District Court of Koper, No. Srg 2011/29737.
Share capital of the company: 1,043,500 EUR
Owners: E 3, d. o. o., Nova Gorica (100 %)
D119
Name: ECO ATMINVEST, energija, okolje, ekonomija, d.o.o.
Abbreviated name: ECO ATMINVEST, d. o. o.
Business address: Bidovčeva ulica 1, 5000 Nova Gorica
VAT identification number: 79068090
Registration number: 3326489
Bank account: SI56 0475 0000 1795 521
Company is registered in the Companies Register at the District Court of Nova Gorica, No. Srg 2014/11036
Share capital of the company: 7,500 EUR
Owners: E 3, d. o. o., Nova Gorica (100 %)
Director of the company: Darko Pahor
In year 2014 the company operated with a loss in the amount of 154,684 EUR.
Business Report of Elektro Primorska Group | 1. Presentation of the Group Business Report of Elektro Primorska Group | 1. Presentation of the Group
D120
2.Risk Management
Risk management is defined by COT methodology, which is valid for Elektro Primorska
Group. Subsidiary E3, d. o. o., buys and sells electricity and is thus extremely exposed
to the market risks, which indirectly worsen capital adequacy of Elektro Primorska d. d.
Company.
Elektro Primorska Group meets different risks, monitors them regularly and submits
appropriate measures to control them and thus establishes more stable operating con-
ditions.
Risk management is one of the key tasks of the Elektro Primorska group's management.
Market risks arise from the uncertain changes in prices on the domestic and foreign
electricity markets, where the company is present, as well as from the open position
of the trading portfolio of the company. Open position, which is exposed to market risk
arises when the aggregate quantity of electricity purchased at a fixed price within a given
accounting period deviates from the quantities sold at a fixed price. In doing so, the risk is
controlled to the maximum extent so that each sale is marked by the appropriate counter
purchase and conversely. In order to hedge open positions, in addition to contracts with
the obligation to supply at a fixed price, the company also uses the option of purchasing
electricity through several »open« contracts that allow optimal purchase of electricity in
several markets, and by limiting the open position not to exceed the percentage amounts
of electricity provided by Regulations.
Quantity risks are the result of the risks arising from the difference between the forecast
(leased) and the actual delivered quantity of electricity. Quantity risks are borne by the
company in open contracts, that is in all contracts with final customers and qualified
producers. Company manages this risk through a comprehensive information support
for long- and short-term forecasting of consumption profiles and delivery of electricity,
and through active daily monitoring of deviations of all measurement points included in
the balance subgroup E3.
Price risks are associated with increased competition in the electricity market and un-
certainty in market prices. EP group manages price risks through appropriate pricing
policies and coordinated maturity of the sales and purchase contracts.
D121
Credit risks are the result of losses due to untimely performance or even failure to ful-
fill obligations of the buyer of electricity to the company. Company limits credit risk by
carefully checking the creditworthiness of customers, continuously monitoring, and ma-
naging credit exposures of individual customers according to their limits and by monito-
ring outstanding receivables. To reduce such risk sale transactions in electricity field are
largely secured by instruments that include adequate insurance. Risk management is not
only associated with insurance, but rather with exactly defined purchase contracts, which
the company claims in all types of transactions with electricity.
Liquidity risks arise, if the company would not be able to meet its financial obligations as
they fall due. By daily monitoring and planning of short- and long-term solvency provided
by up to date coordination and planning of cash flows, the company ensures that the risk
of a liquidity capacity is in the range of acceptable parameters and that it is manageable.
Regulatory risks result from changes in market rules or legislation on the Slovenian mar-
ket or foreign electricity markets and may affect business results. Company actively
monitors developments in the legislation both through the parent company as well as
independently according to activities of the controlled company E 3, d. o. o., to be able to
promptly respond to such changes by adjusting trades and production activities.
In addition to external risks arising from the contracts concluded, the company must also
manage internal risks arising from operational business of the company and its organi-
zation.
Operational risk is present in all business operations performed by the company. The
risk is reflected in the fact that due to insufficient efficacy of information technology,
quality processes and control processes, the company could suffer financial damage.
Company limits these risks with a control system based on the principle that all major
operations are carried out with control of at least two persons as well as with continuing
improvements in upgrading information infrastructure and automatic control of individual
phases of the process. In addition, the company seeks to limit this risk by identifying all
the processes, clearly defining the roles of individuals, including their powers, responsi-
bilities and policies. Operational risks are reduced by highly professional, experienced
and motivated employees. From the latter it is expected to continuously upgrade existing
and acquire new knowledge, as well as dynamism, multidisciplinary activities, teamwork
and own-initiative. Also, the provision of adequate working conditions and environment
must prevent the possible loss of key employees, which is the essence of the staff risk.
Business Report of Elektro Primorska Group | 2. Risk Management Business Report of Elektro Primorska Group | 2. Risk Management
D122
3.Consolidated FinancialStatements
3.1. Consolidated balance sheet as at December 31 2014
Table 71: Consolidated
balance sheet as at December 31 2014
(assets)
Assets Note 31/12/14 31/12/13
A. Long-term assets: in EUR
I. Intangible assest 4.2.1.1. 2,394,084 974,999
1. Long-term rights 2,233,242 776,623
2. Goodwill 89,907 89,907
3. Long-term deferred development costs 19,413 99,189
4. Other LT accruals and pre-paid expenditure 1,692
5. Intangible assets in acquisition 49,830 9,280
II. Tangible fixed assets 4.2.1.2. 178,085,210 177,615,806
1. Land 5,905,500 5,895,970
2. Buildings 119,343,119 116,591,165
3. Equipment 49,318,381 50,798,795
4. Fixed assets in acquisition 3,518,210 4,329,876
III. Long-term financial investments 1,911,796 1,911,796
1. Investments in group companies shares 1,399,725 1,324,664
2. Other shares and stakes 512,071 492,725
IV. Long-term operating receivables 4.2.3. 69,642 16,965
1. Long-term receivable due from others 69,642 16,965
V. Deferred tax assets 4.2.4. 655,399 670,355
Total long-term assets 4.2.1. 183,116,131 181,095,514
B. Short-term assets: in EUR
I. Stocks 4.2.5.1. 967,296 870,006
1. Material 967,296 870,006
II. Short-term financial investments 4.2.5.2. 40,623 194,561
1. Short-term loans to others 40,623 194,561
III. Short-term operating claims 4.2.5.3. 24,568,467 28,123,350
1. Operating accounts receivable 22,593,405 26,493,803
2. Operating claims on others 1,975,062 1,629,547
IV. Monetary assets 4.2.5.4. 868,441 6,488,438
Total short-term assets 4.2.5. 26,444,827 35,676,355
C. Short-term accruals and pre-paid expenditure 4.2.6. 1,181,629 885,344
TOTAL ASSETS 210,742,587 217,657,213
D123
Consolidated balance sheet as at December 31 2014
Table 72: Consolidated balance sheet as at December 31 2014 (liabilities)
Explanatory notes are part of the financial statements and should be read in conjunction
with them.
Liabilities Note 31/12/14 31/12/13
A. Capital: in EUR
I. Called-up capital 78,562,832 78,562,832
1. Share capital 78,562,832 78,562,832
II. Capital reserves 46,208,187 46,208,187
III. Profit reserves 17,571,277 13,347,083
1. Statutory reserves 768,501 768,501
2. Other profit reserves 16,802,776 12,578,582
IV. Revaluation surplus -35,997 42,522
V. Net profit or loss from previous periods 763,796 755,497
VI. Net profit or loss of the business year 2,086,817 3,549,759
Total capital 4.2.7. 145,156,912 142,465,880
B. Provisions and LT accrued costs and deferred revenues 4.2.8. 14,130,053 14,184,876
1. Provisions 3,484,839 3,411,933
2. Long-term accrued costs and deferred revenues 10,645,214 10,772,943
C. Long-term liabilities 4.2.9. 20,868,992 21,445,704
I. Long-term financial liabilities 20,868,992 21,445,704
1. Long-term financial liabilities to banks 20,868,992 21,445,704
Č. Short-term liabilities 4.2.10. 29,687,239 38,526,676
I. Short-term financial liabilities 8,348,080 11,515,741
1. Short-term financial liabilities to banks 8,106,913 11,514,684
2. Other short-term financial liabilities 241,167 1,057
II. Short-term operating liabilities 21,339,159 27,010,935
1. Short-term operating liabilities to suppliers 19,382,785 23,956,726
2. Other short-term operating liabilities 1,956,374 3,054,209
Total liabilities 64,686,284 74,157,256
D. Short-term accrued costs and deferred revenues 4.2.11. 899,391 1,034,077
TOTAL LIABILITIES 210,742,587 217,657,213
Business Report of Elektro Primorska Group | 3. Consolidated Financial Statements Business Report of Elektro Primorska Group | 3. Consolidated Financial Statements
D124
Explanatory notes are part of the financial statements and should be read in conjunction
with them.
14. Other revenues 4.3.5. 3,576 60,679
15. Other expenses 4.3.6. -84,646 -70,877
NET PRE-TAX PROFIT OR LOSS OF THE ACCOUNTING PERIOD 4,655,809 8,207,756
16. Income tax 4.3.7. 561,452 1,007,539
17. Deferred tax 14,955 -298,793
18. NET PROFIT OR LOSS OF THE ACCOUNTINGPERIOD
4.3.8. 4,079,402 7,499,010
3.2. Consolidated profit or loss account forbusiness year ended as at December 31 2014
3.3. Consolidated statement of comprehensiveincome for year ended as at December 31 2014
Table 73: Consolidated profit
or loss account for business
year ended as at December 31 2014
Assets Note 2014 2013
in EUR
1. Net sales revenue 4.3.1. 92,558,815 114,119,766
a. on domestic market 89,559,539 105,725,368
b. on foreign market 2,999,276 8,394,398
2. Capitalized own products and services 4.3.1. 6,127,555 6,381,552
3. Other operating revenues 4.3.1. 4,717,350 2,286,524
4. Costs of goods, material, and services 4.3.2. -67,242,378 -84,717,574
a. costs of goods sold and material used -58,426,372 -74,971,681
b. costs of services -8,816,006 -9,745,893
5. Labor costs 4.3.2. -16,912,474 -16,403,690
a. costs of salaries -12,409,457 -11,844,823
b. costs of additional pension insurance of employees -611,587 -621,212
c. social security costs -2,021,731 -1,946,341
č. other labor costs -1,869,699 -1,991,314
6. Amortization/depreciation expense 4.3.2. -13,203,378 -12,580,930
a. depreciation -11,411,019 -11,692,566
b. operating expenses from revaluation in intang. and tang. fixed assets
-694,009 -163,021
c. operating expenses from revaluation in current assets -1,098,350 -725,343
7. Other operating expenses 4.3.2. -748,832 -289,111
8. Financial revenues from shares 4.3.3. 167,997 205,601
a. associate companies 150,698 153,049
b. in other companies 17,299 49,655
c. from other investments 2,897
9. Financial revenues from given loans 4.3.3. 13,339
a. given to others 13,339
10. Financial revenues from operating claims 4.3.3. 214,697 253,852
a. on others 214,697 253,852
11. Financial expenses from impairment and financial investment write-offs
4.3.4. -110,799
a. from group companies -108,000
b. from others -2,799
12. Financial expenses from financial liabilities 4.3.4. -918,211 -762,883
a. from loans, received from banks -844,793 -762,883
b. from other financial liabilities -73,418
13. Financial expenses from operating liabilities 4.3.4. -37,601 -164,354
a. from liabilities to suppliers and bill of exchange liabilities -37,111 -164,354
b. from other operating liabilities -490
2014
in EUR
18. NET PROFIT OR LOSS OF THE ACCOUNTING PERIOD 4,079,402
Changes in the surplus from the revaluation of financial assets available for sale 10,893
Other components of comprehensive income -89,411
Total comprehensive income of the accounting period 4,000,884
D125
Table 74: Consolidated statement of comprehensive income for year ended as at December 31 2014
Table 75: Consolidated cash flow statement for year ended as at December 31 2014
3.4. Consolidated cash flow statement for year ended as at December 31 2014
Explanatory notes are part of the financial statements and should be read in conjunction
with them.
Note 2014 2013
A. OPERATING CASH-FLOW v EUR
1. Operating receipts 185,211,582 206,949,458
a. Receipts from sales of products and services 159,983,781 180,897,350
b. Other operating receipts 25,227,801 26,052,108
2. Operating expenditure -174,267,066 -190,689,575
a. Expenditure for purchase of material and services -81,679,534 -98,998,268
b. Expenditure for salaries and employees profit shares -17,725,682 -16,294,521
c. Expenditure for duties of all kinds -9,326,117 -8,040,860
č. Other operating expenditure -65,535,733 -67,355,926
3. Excess of operating receipts 10,944,516 16,259,883
B. CASH FLOWS IN INVESTING ACTIVITIES
4. Receipts in investing activities 326,077 319,080
a. Receipts from received interest and profit shares 315,455 230,423
b. Receipts from disposal of tangible fixed assets 10,622 88,657
5. Expenditure in investing activities -11,042,276 -11,251,391
a. Expenses for acquisition of long-term intangible assets -237,699 -831,631
b. Expenses for acquisition of tangible fixed assets -10,709,688 -10,311,760
c. Expenses for acquisition of long-term financial investments -8,454
č. Expenses for acquisition of short-term financial investments -86,435 -108,000
6. Excess of expenditure in investing activities -10,716,199 -10,932,311
7. Excess of operating and investing receipts 228,317 5,327,572
C. CASH FLOWS IN FINANCING ACTIVITIES
8. Receipts in financing activities 38,957,000 31,949,000
a. Receipts from long-term loans 21,060,000 9,800,000
b. Receipts from short-term loans 17,897,000 22,149,000
9. Expenditure in financing activities -44,825,450 -31,436,454
a. Expenditure for given interest -896,732 -927,806
b. Expenditure for repayment of long-term loans -21,719,246 -8,223,336
c. Expenditure for repayment of short-term loans -20,897,000 -20,967,000
č. Expenditure for dividend -1,312,472 -1,318,312
10. Excess of expenditure in financing activities -5,868,450 512,546
11.Total excess of receipts or expenditure -5,640,133 5,840,118
Č. CLOSING BALANCE OF CASH AND CASH EQUIVALENTS 830,086 6,470,219
X. Opening balance of cash and cash equivalents 6,470,219 630,101
Y. CASH FLOW FOR THE PERIOD 4.4. -5,640,133 5,840,118
Cash at end of period as at 31.12. 830,086 6,470,219
Business Report of Elektro Primorska Group | 3. Consolidated Financial Statements Business Report of Elektro Primorska Group | 3. Consolidated Financial Statements
D126
3.5.
Con
solid
ated
sta
tem
ent o
f cha
nges
in e
quity
for
year
end
ed a
s at
Dec
embe
r 31
201
4
Tab
le 7
6:
Con
solid
ated
st
atem
ent
of
chan
ges
in e
qui
ty
for
year
end
ed a
s at
D
ecem
ber
31
2014
Exp
lana
tory
not
es a
re p
art
of t
he fi
nanc
ial s
tate
men
ts a
nd s
houl
d b
e re
ad in
con
junc
tion
with
the
m.
2014
Cal
led
-up
cap
ital
Pro
fit
rese
rves
Net
pro
fit
or
loss
fr
om
pre
vio
us
per
iod
s
Net
pro
fit
or
loss
o
f th
e b
usin
ess
year
in E
UR
Sha
re c
apit
alC
apit
al r
eser
ves
Sta
tuto
ry
rese
rves
Oth
er p
rofi
t re
serv
esR
eval
uati
on
surp
lus
N
et p
rofi
t b
roug
ht f
orw
ard
Net
pro
fit
of
the
bus
ines
s ye
arT
ota
l cap
ital
I/1
IIIII
/1III
/1IV
V/1
VI/
1
A.1
. Bal
ance
as
of 3
1.12
.201
3 78
,562
,832
46,2
08,1
8776
8,50
112
,578
,582
42,5
2275
5,49
73,
549,
759
142,
465,
880
a. R
etro
spec
tive
conv
ersi
on (e
rror
cor
rect
ion)
8,02
68,
026
A.2
. B
alan
ce a
s of
1.1
.201
4 78
,562
,832
46,2
08,1
8776
8,50
112
,578
,582
42,5
2275
5,49
73,
557,
785
142,
473,
906
B.1
. C
hang
es in
eq
uity
cap
ital
– t
rans
acti
ons
wit
h o
wne
rs
-1,3
17,8
77-1
,317
,877
a) D
ivid
end
pay
men
t-1
,317
,877
-1,3
17,8
77
B.2
. To
tal c
om
pre
hens
ive
inco
me
of
rep
ort
ing
per
iod
-78,
519
04,
079,
402
4,00
0,88
3
a) E
ntry
of n
et p
rofit
or
loss
for
the
rep
ortin
g p
erio
d4,
079,
402
4,07
9,40
2
b) C
hang
es in
sur
plu
s fr
om fi
nanc
ial i
nves
tmen
ts r
eval
uatio
n10
,891
10,8
91
c) O
ther
item
s in
com
pre
hens
ive
inco
me
of r
epor
ting
per
iod
-89,
410
-89,
410
B.3
. Cha
nges
wit
hin
cap
ital
4,
224,
194
1,32
6,17
6-5
,550
,370
0
a) A
lloca
tion
of r
emai
ning
par
t of
net
pro
fit o
f the
com
par
ativ
e re
por
ting
per
iod
to
othe
r ca
pita
l ite
ms
2,23
7,16
7-2
,237
,167
0
b) A
lloca
tion
of p
art
of n
et p
rofit
of r
epor
ting
per
iod
to
othe
r ite
ms
of
cap
ital f
ollo
win
g th
e d
ecis
ion
of t
he m
anag
emen
t 3,
313,
203
-3,3
13,2
030
c) A
lloca
tion
of p
art
of n
et p
rofit
for
add
ition
al p
rovi
sion
ing
und
er t
he
dec
isio
n of
the
ann
ual g
ener
al m
eetin
g91
0,99
1-9
10,9
910
C. B
alan
ce a
s of
31.
12.2
014
78,5
62,8
3246
,208
,187
768,
501
16,8
02,7
76-3
5,99
776
3,79
62,
086,
817
145,
156,
912
Dis
trib
utab
le p
rofi
t 2
014
763,
796
2,08
6,81
72,
850,
613
D127
Tab
le 7
7:
Con
solid
ated
st
atem
ent
of
chan
ges
in e
qui
ty
for
year
end
ed a
s at
D
ecem
ber
31
2013
Co
nso
lidat
ed s
tate
men
t o
f ch
ang
es in
eq
uity
fo
r ye
ar e
nded
as
at D
ecem
ber
31
2013
2013
Cal
led
-up
cap
ital
P
rofi
t re
serv
esN
et p
rofi
t o
r lo
ss
fro
m p
revi
ous
p
erio
ds
Net
pro
fit
or
loss
o
f th
e b
usin
ess
year
in E
UR
Sha
re c
apit
alC
apit
al r
eser
ves
Sta
tuto
ry r
e-se
rves
Oth
er p
rofi
t re
serv
esR
eval
uati
on
surp
lus
Net
pro
fit
bro
ught
fo
rwar
dN
et p
rofi
t o
f th
e b
usin
ess
year
To
tal c
apit
al
I/1
IIIII
/1III
/1IV
V/1
VI/
1
A.1
. Bal
ance
as
of 3
1.12
.201
2 78
,562
,832
46,2
08,1
8776
8,50
19,
169,
286
34,7
2512
9,86
51,
403,
553
136,
276,
949
A.2
. B
alan
ce a
s of
1.1
.201
3 78
,562
,832
46,2
08,1
8776
8,50
19,
169,
286
34,7
2512
9,86
51,
403,
553
136,
276,
949
B.1
. C
hang
es in
eq
uity
cap
ital
– t
rans
acti
ons
wit
h o
wne
rs
-1,3
17,8
76-1
,317
,876
a) D
ivid
end
pay
men
t-1
,317
,876
-1,3
17,8
76
B.2
. To
tal c
om
pre
hens
ive
inco
me
of
rep
ort
ing
per
iod
7,79
70
7,49
9,01
07,
506,
807
a) E
ntry
of n
et p
rofit
or
loss
for
the
rep
ortin
g p
erio
d7,
499,
010
7,49
9,01
0
b) C
hang
es in
sur
plu
s fr
om fi
nanc
ial i
nves
tmen
ts r
eval
uatio
n7,
797
7,79
7
B.3
. Cha
nges
wit
hin
cap
ital
3,40
9,29
61,
943,
508
-5,3
52,8
040
a) A
lloca
tion
of r
emai
ning
par
t of
net
pro
fit o
f the
com
par
ativ
e re
por
ting
per
iod
to
othe
r ca
pita
l ite
ms
1,94
3,50
8-1
,943
,508
0
b) A
lloca
tion
of p
art
of n
et p
rofit
of r
epor
ting
per
iod
to
othe
r ite
ms
of
cap
ital f
ollo
win
g th
e d
ecis
ion
of t
he m
anag
emen
t 3,
409,
296
-3,4
09,2
960
C. B
alan
ce a
s of
31.
12.2
013
78,5
62,8
3246
,208
,187
768,
501
12,5
78,5
8242
,522
755,
497
3,54
9,75
914
2,46
5,88
0
Dis
trib
utab
le p
rofi
t 2
013
755,
497
3,54
9,75
94,
305,
256
Business Report of Elektro Primorska Group | 3. Consolidated Financial Statements Business Report of Elektro Primorska Group | 3. Consolidated Financial Statements
D128
3.6. Indicators in Elektro Primorska GroupMain indicators of financing (investing)
Contextually they define relations among liabilities, so they are used to establish the
structure of financing the assets, and at the same time they express the degree of
financial independence.
Main investment indicators (investing)
These indicators are used to establish where Elektro Primorska Group invested its
assets and what structure of assets it has according to these investments.
Main horizontal financial structure indicators
These indicators show how individual categories of assets are financed and how the
Elektro Primorska group is able to settle its short-term financial liabilities.
Table 78:Main indicators of
financing
Table 79:Main investment
indicators
Table 80:Main indicators of financial structure
Seq. No
Description 2014 2013 2012 2011 2010 2009 2008
1. Equity financing rate capital / liabilities
0,689 0,655 0,649 0,629 0,644 0,625 0,654
2. Long-term financing rate capital, long-term debts and long-term provisions / liabilities
0,855 0,818 0,804 0,785 0,809 0,804 0,818
Seq. No
Description 2014 2013 2012 2011 2010 2009 2008
1. Operating fixed assets rate fixed assets / assets
0,845 0,816 0,840 0,823 0,819 0,802 0,818
2. Financial investment rate long-term and short-term financialinvestments / assets
0,009 0,009 0,008 0,006 0,006 0,006 0,006
3. Long-term assets rate fixed assets, long-term financialinvestments and l.t. oper. claims / assets
0,854 0,828 0,085 0,829 0,824 0,808 0,824
Seq. No
Description 2014 2013 2012 2011 2010 2009 2008
1. Equity to operating fixed assets capital / fixed assets
0,815 0,802 0,772 0,765 0,786 0,779 0,801
2. Immediate solvency ratio liquid assets / short-term liabilities
0,029 0,168 0,016 0,029 0,025 0,164 0,064
3. Quick ratio liquid assets and short-term claims / short-term liabilities
0,857 0,898 0,712 0,715 0,799 0,905 0,946
4. Current ratio short-term assets / short-term liabilities
0,891 0,926 0,737 0,747 0,838 0,944 0,993
D129
Table 81:Main indicators of economy
Table 82:Main indicators of return
Main indicators of economy
The operating efficiency ratio shows that the profit of the group companies is positive.
Main indicators of return
By analyzing the ratio of profitability we establish that the group's operation is viable
due to a positive operating result.
Seq. No
Description 2014 2013 2012 2011 2010 2009 2008
1. Operating efficiency ratio operating revenues / operating expenses
1,054 1,077 1,021 1,020 1,000 1,010 1,050
2. Entire efficiency ratio revenues / expenses
1,047 1,071 1,016 1,013 1,003 1,010 1,035
Seq. No
Description 2014 2013 2012 2011 2010 2009 2008
1. Level of revenue profitability net profit or loss / sale revenues
0,044 0,066 0,016 0,011 0,002 0,008 0,030
2. ROA net profit or loss / average assets
0,019 0,035 0,010 0,006 0,001 0,005 0,020
3. ROE net profit or loss / average capital (excl. net profit or loss of business year)
0,029 0,054 0,015 0,010 0,002 0,008 0,031
Business Report of Elektro Primorska Group | 3. Consolidated Financial Statements Business Report of Elektro Primorska Group | 3. Consolidated Financial Statements
Business Report of Elektro Primorska Group | 4. Financial Report of Elektro Primorska Group D130
4.Financial Report of Elektro Primorska Group
4.1. General notes and disclosures Accounting policies and accounting notes described in the Elektro Primorska d.d. also
apply to Elektro Primorska Group.
Below we state only that information important for disclosure and draw up of consolida-
ted accounts.
Consolidated financial statements are comprised according to the provisions of the
Companies Act and in accordance to Slovenian Accounting Standards 2006.
Consolidation includes parent company Elektro Primorska d. d., controlled company E
3, d. o. o., controlled company JOD, d. o. o., controlled company Eco Atminvest and
associate company Knešca, d. o. o.
Consolidated financial statements include:
• consolidated balance sheet,
• consolidated profit or loss account,
• consolidated cash flow statement,
• consolidated statement of changes in equity and
• notes to the consolidated financial statements.
Companies in Elektro Primorska Group are subject to individual method of determining
the corporate income tax.
In group statements Elektro Primorska Group is presented in such a way as to deal with
a single company. Group financial statements are comprised based on the original finan-
cial statements of the companies, including the appropriate consolidation adjustments,
which are not subject to accounting in accounts of the considered companies.
Consolidated accounts are comprised based on the full consolidation of subsidiaries E 3,
d. o. o., JOD, d. o. o., and Eco Atminvest and with the use of equity method for associate
company Knešca, d. o. o.
Business Report of Elektro Primorska Group | 4. Financial Report of Elektro Primorska Group D131
Table 83:Long-term assets statements of Elektro Primorska Group
Consolidation procedures relate to the following:
• calculation of financial investment of the parent company with a capital of the con-
trolled company,
• elimination of intercompany receivables and payables,
• elimination of intercompany revenues and expenses,
• elimination of intercompany inflows and outflows,
• increase of investment in the associate company for the corresponding amount of
capital, reduced by dividends paid and related financial income and expenses.
4.2. Notes to the consolidated balance sheet In accordance with the SAS 24, which is related to the legal provisions on the scope of
data on the balance sheet, order and required breakdown of asset and liabilities items
for large companies have been considered, as well as provisions of the SAS defining
consolidation of balance sheets for external reporting.
Consolidated balance sheet includes assets and liabilities of the parent company Elektro
Primorska d. d., controlled company E 3, d. o. o., controlled company JOD, d. o. o., and
controlled company Eco Atminvest.
During the consolidation procedures 7,687,785 EUR of assets and liabilities have been
eliminated in the following items:
• receivables and payables in the amount of 450,681 EUR
• long-term financial investments in the amount of 7,137,586 EUR
• goodwill in the amount of –89,907 EUR
• equity in the amount of 7,047,679 EUR
• receivables and payables for short-term loans 164,234 EUR and
• accrued and deferred income in the amount of 25,191 EUR.
4.2.1. Long-term assets
Reported long-term assets of Elektro Primorska Group are:
Long-term assets 31.12.2014 31.12.2013
in EUR
1.1. Intangible assets 2,394,084 974,999
1.2. Tangible fixed assets 178,085,210 177,615,806
1.3. Long-term financial investments 1,911,796 1,817,389
1.4. Long-term operating claims 69,642 16,965
1.5. Deferred tax asset 655,399 670,355
Total 183,116,131 181,095,514
D132
Table 84:Changes in
intangible assets in year 2014
4.2.1.1. Intangible assets
Intangible assets of the parent company include deferred expenses of development stu-
dies and rights to use holiday facilities and land, as well as use of space in the transformer
station facility. In the intangible assets we also report rights to computer software use of
the controlled and parent companies.
Cost of the intangible asset is comprised of its purchase price or costs of manufacture.
Group recognizes its intangible assets according to the acquisition cost model. Value of
intangible long-term assets increased in year 2014 for the purchase of long-term rights
in the amount of 1,882,247 EUR. Disposals of intangible assets in acquisition constitute
activation in development studies or long-term rights.
Value adjustments on studies in acquisition are values of invested assets, related to plan-
ned investment in the construction of wind power plants, which the group forms since
2014 due to complaints in the process of obtaining a building permit.
Development studies are disclosed at their acquisition costs and are charged to costs
of studies and not as depreciation cost in the amount of 20 % per year, according to
the estimated useful life, which is five years for these assets. Individual book values of
intangible assets are not significant for the accounts as a whole.
Company has no intangible assets with limited ownership rights.
Following table shows changes in intangible assets in year 2014:
2014 Deferred development studies costs
Long-term rights
Other long-term accruals
and pre-paid expenditure
Intangible assets in
acquisition
Goodwill Total
Acquisition cost in EUR
Balance 1.1.2014 1,244,369 2,358,314 0 1,114,297 89,907 4,806,887
Increases in year 1,710 1,882,247 1,883,957
Transfer 0 0
Increases from invest. in progress 1,841,697 -1,841,697 0
Decreases in year -427,555 -18 -427,573
Balance 31.12.2014 816,814 4,200,011 1,692 1,154,847 89,907 6,263,271
Value adjustment 0 0
Balance 1.1.2014 1,145,180 1,581,691 0 1,105,017 0 3,831,888
Depreciation in year 79,776 385,078 0 464,854
Write-off in year 0 0
Increases in year 0 0
Decreases in year -427,555 0 -427,555
Transfer 0 0
Balance 31.12.2014 797,401 1,966,769 0 1,105,017 3,869,187
Carrying amount 0 0
Balance 1.1.2014 99,189 776,623 0 9,280 89,907 974,999
Balance 31.12.2014 19,413 2,233,242 1,692 49,830 89,907 2,394,084
D133
Table 85:Changes in intangible assets in year 2013
Following table shows changes in intangible assets in year 2013:
4.2.1.2. Tangible fixed assets
Tangible fixed assets of the group companies are land, buildings and equipment and
these assets under construction. They are disclosed in the balance sheet at their carrying
amount, which represents the difference between the acquisition and the written down
value. Group has no investment property and evaluates the tangible fixed assets accor-
ding to the acquisition cost model.
Cost of the tangible fixed assets is comprised of its purchase price and all costs that can
be directly attributed to its restoration for use.
Acquisition cost of facilities built on its own is cost price, which does not exceed the price
of the same kind of things on market. Cost price is comprised of direct material costs of
manufacturing and services, direct labor costs and general production costs.
2013 Deferred development studies costs
Long-term rights
Intangible assets in
acquisition
Goodwill Total
Acquisition cost in EUR
Balance 1.1.2013 1,466,478 1,645,388 1,114,297 0 4,226,163
Increases in year 712,926 89,907 802,833
Increases from invest. in progress 712,926 -712,926 0
Decreases in year -222,109 -222,109
Balance 31.12.2013 1,244,369 2,358,314 1,114,297 89,907 4,806,887
Value adjustment
Balance 1.1.2013 1,216,573 1,174,814 1,105,017 0 3,496,404
Depreciation in year 150,715 406,877 557,592
Decreases in year -222,108 -222,108
Balance 31.12.2013 1,145,180 1,581,691 1,105,017 0 3,831,888
Carrying amount
Balance 1.1.2013 249,905 470,574 9,280 0 729,759
Balance 31.12.2013 99,189 776,623 9,280 89,907 974,999
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Tabela 86: Spremembe
opredmetenih sredstev v letu 2014
Changes in tangible fixed assets of the group in year 2014:
95 % of tangible fixed assets of the group belong to the parent company Elektro Primor-
ska d. d. Tangible fixed assets of the group increased due to new acquisitions in year
2014 by 12,325,069 EUR. 95 % of the increase value belongs to the parent company, 4
% to controlled company E 3, d. o. o., while the rest to company Eco Atminvest, d. o. o.
In year 2014 parent company realized its investment plan by 100%. It realized by
13,100,450 EUR of new investments.
In 2014 controlled company E 3, d. o. o., earmarked 558,220 EUR for investments.
Value adjustments of tangible fixed assets of the group increased in year 2014 by calcu-
lated depreciation in the amount of 11,025,941 EUR and reduced by asset eliminations.
Value adjustments of fixed assets in acquisition are adjustments of investments for con-
struction of wind power plants formed in the previous years. In year 2014 an adjustment
was additionally formed in the amount of 13,461 EUR.
Elektro Primorska Group has no fixed assets obtained by financial lease. Part of real
estate was pledged in year 2013 in return to the received bank guarantee to secure the
payment in E3 company. Estimated value of all pledged real estate is 8,325,948 EUR.
2014 Land Facilities Equipment Fixed assets in acqui-sition and advances
Total
Acquisition cost in EUR
Balance 1.1.2014 5,895,970 376,766,477 149,168,157 5,145,447 536,976,051
Increases in year 144,112 23,705 12,157,252 12,325,069
Increases from invest. in progress 9,530 9,148,224 3,741,462 -12,899,216 0
Decreases in year -8,112,664 -2,960,663 -56,241 -11,129,568
Transfer 24,610 -24,610 0
Balance 31.12.2014 5,905,500 377,970,759 149,948,051 4,347,242 538,171,552
Value adjustment
Balance 1.1.2014 260,175,311 98,369,363 815,571 359,360,245
Depreciation in year 5,876,903 5,149,038 11,025,941
Decreases in year -7,427,304 -2,886,001 -10,313,305
Increases in year 13,461
Transfer 2,730 -2,730 0
Balance 31.12.2014 258,627,640 100,629,670 829,032 360,072,881
Carrying amount
Balance 1.1.2014 5,895,970 116,591,166 50,798,794 4,329,876 177,615,806
Balance 31.12.2014 5,905,500 119,343,119 49,318,381 3,518,210 178,085,210
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Table 87:Changes in tangible assets in year 2013
Changes in tangible fixed assets of the group in year 2013:
4.2.2. Long-term financial investments
In accordance with SAS 3, which deals with financial investments, they are classified as
assets available for sale.
Long-term financial investments of Elektro Primorska Group include investments of the
parent company in shares and other companies in the amount of 492,071 EUR, inve-
stment of controlled company E 3, d. o. o., in the Aeronautical Museum in Nova Gorica
in the amount of 20,000 EUR and investment of controlled company JOD, d. o. o., in the
associate company Knešca, d. o. o., in the amount of 1,399,725 EUR.
2013 Land Facilities Equipment Fixed assets in acqui-sition and advances
Total
Acquisition cost in EUR
Balance 1.1.2013 5,850,827 372,233,127 147,264,786 6,057,820 531,406,560
Increases in year 333,716 141,818 10,399,732 10,875,266
Increases from invest. in progress 45,143 6,285,356 4,830,530 -11,161,029 0
Decreases in year -2,085,722 -3,068,977 -151,076 -5,305,775
Balance 31.12.2013 5,895,970 376,766,477 149,168,157 5,145,447 536,976,051
Value adjustment
Balance 1.1.2013 256,290,507 95,827,333 815,571 352,933,411
Depreciation in year 5,909,468 5,442,713 11,352,181
Decreases in year -2,024,664 -2,900,683 -4,925,347
Balance 31.12.2013 260,175,311 98,369,363 815,571 359,360,245
Carrying amount
Balance 1.1.2013 5,850,827 115,942,620 51,437,453 5,242,249 178,473,149
Balance 31.12.2013 5,895,970 116,591,166 50,798,794 4,329,876 177,615,806
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Table 88: Investment categories
Investments of the group are:
4.2.3. Long-term operating receivables
Long-term operating receivables in the amount of 69,642 EUR represent claims for facili-
ties maintenance funds that are joined at facility operators according to the Housing Act,
and long-term receivables from Eco Gorenje electricity package.
4.2.4. Deferred tax assets
Deferred tax assets in the amount of 655,399 EUR were disclosed by the group as lon-
g-term operating receivables. In year 2014 these receivables reduced by 14,956 EUR.
Effects of differences between the accounting value of items disclosed in the balance
sheet and their tax base are calculated in accordance with the balance sheet liability
method for all temporary differences. Deferred tax assets are the amounts of tax accrued
from long-term provisions and value adjustments on claims that will be recoverable in fu-
ture periods depending on their deductible temporary differences and unused tax losses.
31.12.2014 31.12.2013
Investments in shares associate companies in EUR
Knešca d.o.o. 1,399,725 1,324,664
Total 1,399,725 1,324,664
Other shares:
Informatika Maribor d.d. 240,756 240,756
Banka Koper d.d. 95,879 95,879
Zavarovalnica Triglav d.d. 55,884 44,992
Primorski tehnološki park d.o.o. 1,808 1,808
Eldom Ljubljana d.o.o. 106,395 106,395
Stelkom d.o.o. Ljubljana 57,837 57,837
VIRS 12,626 4,172
Aeronavtični muzej Nova Gorica 20,000 20,000
591,185 571,839
Impairment of investment Eldom d.o.o. -72,905 -72,905
Impairment of investment Stelkom d..o.o. -6,209 -6,209
-79,114 -79,114
Total 512,071 492,725
Total long-term financial investments 1,911,796 1,817,389
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Table 89:Short-term assets of the group
4.2.5. Short-term assets
Short-term assets of the group are:
4.2.5.1. Stocks
All stocks belong to the parent company. They are represented by material intended
for maintenance and construction of electricity facilities, and small tools not exceeding
the amount of 100 euro. Stocks also include protective equipment and small tools with
a useful life longer than one year and value of up to 500 euro. When issued to use such
equipment is then kept off-balance by individual user.
Stocks are initially measured according to their purchase price, while their consumption
is calculated according to the moving average valuation method.
4.2.5.2. Short-term financial investments
Parent company discloses a short-term deposit earmarked for the reconstruction of the
building in the amount of 25,207 EUR, while Eco Atminvest a short-term loan in the amo-
unt of 15,416 EUR.
31.12.2014 31.12.2013
in EUR
2.1. Stocks 967,296 870,006
2.2. Short-term financial investments 40,623 194,561
2.3. Short-term operating receivables 24,568,467 28,123,350
2.4. Monetary assets 868,441 6,488,438
Total 26,444,827 35,676,355
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Table 90:Short-term
receivables of the group
Table 91: Outstanding
receivables from sale and for interest
of the group
4.2.5.3. Short-term operating receivables
Short-term operating receivables in the group are by 13 % lower than in the previous
year. Receivables are not insured, but its nature is such that in the event of default, after
repeated reminders, they are sanctioned with the suspension of access to the network,
supply of electricity or heat.
Receivables from sale and interest receivables:
31.12.2014 31.12.2013
Short-term receivables from sales: in EUR
- on domestic market 24,379,021 27,620,781
- on foreign market 664,584 973,673
Value adjustment -2,630,356 -2,296,755
22,413,249 26,297,699
Interest receivables:
- from other buyers 449,023 436,598
Value adjustment -294,391 -264,484
154,632 172,114
Advances 39,924 23,990
Value adjustment -14,400
25,524 23,990
Other operating receivables:
- from state and other institutions 1,880,319 1,276,698
- from employees 236,226
- from others 111,700 125,265
Value adjustment -16,957 -8,642
1,975,062 1,629,547
Skupaj 24,568,467 28,123,350
31.12.2014 31.12.2013
in EUR
Outstanding receivables 18,479,033 21,737,586
Receivables overdue to 30 days 2,108,631 2,830,137
Receivables overdue from 31 to 60 days 747,019 1,035,109
Receivables overdue from 61 to 90 days 268,932 384,422
Receivables overdue from 91 to 365 days 1,291,710 748,548
Receivables overdue over 365 days 2,597,303 2,295,250
Total 25,492,628 29,031,052
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Table 92:Monetary assets of the group
Tabela 93:Aktivne časovne razmejitve
Elektro Primorska Group forms value adjustments on claims according to the individual
claim and individual business partner for receivables believed not to be settled. They are:
• outstanding claims before 2014,
• defendant claims and
• claims of business partners in bankruptcy and receivership.
In Elektro Primorska Group value adjustments on claims were formed by the parent com-
pany as well as controlled company E 3. Share of claims formed in such way amounts to
11 % according to the balance of claims.
In Elektro Primorska Group 3 % of short-term trade receivables are in foreign market.
They are receivables of E 3, d. o. o. Company.
Among short-term trade receivables to others in the amount 1,975,062 EUR the largest
part are receivables from the state VAT refund and overpaid advance income tax in the
amount of 1,849,703 EUR, while receivables from operations for the account of third
parties amount to 63,382 EUR, the rest are other claims.
4.2.5.4. Monetary assets
Among monetary assets cash on the commercial bank accounts of group companies is
disclosed.
4.2.6. Accruals and prepaid expenditure
Short-term accruals and pre-paid expenditure amounted to 1,181,629 EUR. Predominant
part refers to the accrued cost of electricity purchase from controlled company E 3, d.
o. o., in the amount of 717,387 EUR, 258,473 EUR refer to accrued income of the parent
company from the preliminary account on year 2014, 135,827 EUR to VAT on advances
received, and remaining to other short-term deferred costs.
31.12.2014 31.12.2013
in EUR
Cash in banks 868,441 1,848,438
Short-term deposit 4,640,000
Total 868,441 6,488,438
31.12.2014 31.12.2013
in EUR
VAT on advances received 135,827 109,151
Short-term deferred costs or expenses 4,826 8,451
Accrued revenues 1,040,032 766,479
Vouchers 944 1,263
Total 1,181,629 885,344
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Table 94:Capital of the group
4.2.7. Capital
Capital of the group consists of:
• share capital,
• capital reserves,
• statutory reserves,
• other profit reserves,
• revaluation surplus,
• retained net profit from previous periods and
• net profit of the business year.
Share capital of Elektro Primorska Group is comprised of the equity capital of the parent
company, which is divided in 18,826,797 ordinary registered unit shares. Each share has
an equal share and associated amount in the share capital.
Capital reserves of the company originate from the general capital revaluation adjustment
of the parent company, which was transformed in capital reserves when transferring to
the use of SAS 2006.
Undistributed net profit of the business year in the amount of 2,086,817 EUR consists of
the profit of the parent company and controlled companies E 3, d. o. o., and JOD, d. o. o.,
loss of the company Eco Atminvest and associated profit of associate company Knešca,
d. o. o., in the amount of 159,159 EUR, reduced by paid dividends in the business year
in the amount of 75,637 EUR and paid bonus to the director in the amount of 8,461 EUR.
Group adjusted the initial balance of the profit from previous years in the amount 8,026
EUR because of the subsequent correction of the revenue tax return for year 2013 in
company JOD. Company carried out the correction after the completed consolidation.
Statement of changes in equity shows changes in capital of the group for years 2013
and 2014.
31.12.2014 31.12.2013
in EUR
share capital 78,562,832 78,562,832
capital reserves 46,208,187 46,208,187
statutory reserves 768,501 768,501
other profit reserves 16,802,776 12,578,582
revaluation surplus -35,997 42,522
retained net profit from previous periods 763,796 755,497
net profit of the business year 2,086,817 3,549,759
Total 145,156,912 142,465,880
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Table 95:Provisions of the group
Table 96:Long-term accruals and deferred income
4.2.8. Provisions and long-term accruals and deferred income
In Elektro Primorska Group long-term provisions for long service bonuses and for seve-
rance pays at retirement in accordance with SAS 10 were formed by the parent company
Elektro Primorska d. d. and controlled company E 3, d. o. o. Assumptions based on
which the actuary calculation was made, include data that companies submitted to the
actuary, namely the data for five past years on employees and their changes, data on
the salary growth, severance pays, long service bonus and provisions in the collective
agreement referring to the long-term benefits of the employees.
Actuarial calculation takes into account uniform discount rate by reference to market
interest rates on high-yield corporate bonds. Interest rate curve of the euro area is used
(from 0.12 % to 2.4 %).
Long-term provisions are decreased directly by costs for which settlement they were
formed, and are formed by the differences according to the report on calculation as at
31.1 of the current year.
4.2.8.1. Provisions
4.2.8.2. Long-term accruals and deferred income
31.12.2014 31.12.2013
REZERVACIJE in EUR
Balance 1.1. 3,411,933 3,331,378
Formation 300,059 314,478
Drawing in revenues -227,153 -233,923
Balance 31.12. 3,484,839 3,411,933
Assetsacquired free
Average connection
costs
Co-financing of facilities
construction
Compensa-tion claims
Received do-nations and
supports
Total
in EUR
Balance 1.1. 7,163,249 2,545,157 189,740 1,181 873,616 10,772,943
Formation 151,874 30,805 157,846 340,525
Decrease due to write-off -63,527 -63,527
Drawing in revenues -257,023 -110,299 -9,206 -28,199 -404,727
Balance 31.12. 6,994,573 2,434,858 180,534 31,986 1,003,263 10,645,214
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Table 97:Long-term liabilities
of the group
In year 2014 the parent company formed long-term accruals and deferred income for
free acquisitions of energy facilities of legal and natural persons and average connection
costs. Average connection costs are drawn for actual depreciation of individual power
facility, which amounted to 110,299 EUR for year 2014.
Drawing of long-term deferred income of free acquisitions of fixed assets and co-finan-
cing of building constructions is formed by annual depreciation, which is calculated from
individual freely acquired assets or in the share of the co-financed fixed asset.
For long-term accruals for claims the group formed by 30,805 EUR of liabilities. Entire
amount refers to the parent company.
Received donations refer to controlled company Eco Atminvest, which received funds
from the Ministry of Economy RS to co-finance project of wood biomass district heating.
4.2.9. Long-term liabilities
Long-term liabilities include liabilities to banks for borrowings for investments in the pa-
rent company and controlled company Eco Atminvest.
All loans are due and payable no later than in April 2020.
Long-term loan, raised in 2014 at Bank Sparkasse in the amount of 7,500,000 EUR, falls
due in the period longer than5 years (contractually agreed installments which fall due in
the period longer than 5 years amount to 500,000 EUR). Interest rates have a one-month,
three-month or six-month EURIBOR and the bank's premium range from 1.5 % to 3.2 %.
Interest on borrowings is calculated and paid monthly.
31.12.2014 31.12.2013
in EUR
Long-term liabilities 28,945,036 29,700,950
Short-term part of long-term liabilities -8,076,044 -8,255,246
Long-term financial liabilities 20,868,992 21,445,704
Total long-term liabilities 20,868,992 21,445,704
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Table 98:Short-term liabilities of the group
Due to consolidation in Elektro Primorska Group short-term liabilities in the amount of
450,681 EUR were offset with the short-term claims in the same amount. Entire amount
are short-term operating liabilities.
Short-term financial liabilities of the group include short-term loan of the controlled com-
pany Eco Atminvest and installments of the long-term loans of the parent company and
controlled companies E 3 and Eco Atminvest, due for payment in year 2015.
Short-term payables in the group of companies are lower by 4,711,316 EUR, which re-
presents 20 % less than in the previous year. Obligations to the state are lower than in
the previous year.
Short-term liabilities to employees are obligations for the December payroll, for part of
the bonuses for successful business in year2014.
4.2.10. Short-term liabilities
31.12.2014 31.12.2013
SHORT-TERM FINANCIAL LIABILITIES in EUR
Short-term financial liabilities to companies 21,500 5,000
Short-term financial liabilities to banks 3,254,438
Short-term part of long-term loans 8,326,579 8,255,246
Liabilities for payment of dividends 1,057
Total short-term financial liabilities 8,348,079 11,515,741
Liabilities to suppliers 18,578,292 23,289,608
Liabilities for advances 804,494 650,406
Total short-term operating liabilities to suppliers 19,382,786 23,940,014
Liabilities to employees 1,286,437 1,697,846
Liabilities to state and other institutions 534,637 1,334,078
Other liabilities 135,300 38,997
Total other short-term operating liabilities 1,956,374 3,070,921
Total 21,339,160 27,010,935
Total short-term liabilities 29,687,239 38,526,676
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Table 100: Operating revenues
of the group
Table 99:Accrued expenses
and deferred revenues of the
group
4.2.11. Accrued expenses and deferred revenues
Majority of accrued expenses and deferred revenues belong to the parent company.
Accrued expenses represent the accrued bonus at the end of the year on the basis of the
collective agreement in the amount of 290,962 EUR. Advance payment of the bonus has
already been calculated and paid, while the difference to the final amount was included
by the company to costs for year 2014, as based on the agreement between the mana-
gement board and the union it should be paid.
Accrued expenses also include costs of loss purchase of the parent company in the amo-
unt of 247,754 EUR, accrued expenses for payment of grants in the amount of 181,262
EUR, for which conditions were met and contracts signed in E 3 Company in year 2014,
but the company has not carried out the payment yet.
Short-term deferred revenues are formed in the parent company for surplus of received
funds for years 20110 and 2011 based on the offset of the regulatory year under the con-
tract between SODO and Elektro Primorska in the amount of 97,471 EUR.
4.3. Notes to the consolidated profit or loss account In the process of consolidation of the profit or loss for year 2014 868,596 EUR of all
revenues and 745,758 EUR of all expenses were excluded. Revenues were increased
by the associated profit of the associate company Knešca, d. o. o., in the amount of
159,159 EUR and reduced by the payment of bonuses to the director of this company in
the amount of 8,461 EUR.
4.3.1. Operating revenues
31.12.2014 31.12.2013
in EUR
VAT from advances given 373 406
Short-term deferred revenues 97,471 251,530
Accrued expenses 801,547 782,141
Total 899,391 1,034,077
2014 2013
in EUR
Net sales revenues 92,558,815 114,119,766
Capitalized own products and services 6,127,555 6,381,552
Other operating revenues 4,717,350 2,286,524
Total operating revenues 103,403,720 122,787,842
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Table 101: Operating expenses of the group
Due to consolidation there was 732,159 EUR of net sales revenue excluded from opera-
ting revenues.
In year 2014 consolidated net sales revenues were by 21,560,951 EUR lower than in
previous year.
Revenues from capitalized own products and services and other operating revenues
belong mainly to the parent company. Revenues from capitalized own products and
services are revenues from accounts of prepared documentation and participation in
construction of facilities for investments. Other operating revenues are comprised of re-
venues from the extraction of accruals for amortization of free acquisitions, co-financings
of facility construction and average connection costs.
46 % 47,996,713 EUR of the total operating revenue of the group belong to the parent
company, while 53% to the E3 subsidiary in the amount of 55,198,570 EUR, of which 5
% were realized on the foreign markets.
4.3.2. Operating expenses
Operating expenses are costs, recorded by type, like electricity purchase, material and
services, labor costs, write-offs and other operating expenses.
Due to consolidation there was 732,159 EUR of expenses value excluded from operating
expenses, namely by 249,499 EUR of costs of material and purchase value of sold goods
and by 482,660 EUR of costs of services.
Operating expenses in Elektro Primorska Group are lower than in the previous year by
15,884,243 EUR, which represents a 14 % reduction.
2014 2013
in EUR
Cost of electricity sold 51,098,643 69,377,245
Cost of material and services 16,143,735 15,340,329
Labor cost 16,912,474 16,403,690
Write-offs 13,203,378 12,580,930
Other operating expenses 748,832 289,111
Total 98,107,062 113,991,305
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Expenses of Elektro Primorska Group also include costs of supervisory board meetings
attendance fees. In year 2014 payments to members amounted to 95,155 EUR; all were
paid in the parent company.
Costs of annual report auditing in the group amounted to 14,385 EUR.
Companies in the group have one member each in the management board. They recei-
ved a total of 164,666 EUR.
Members of the board and employees on individual contracts were not approved any
loan or given any surety for their obligations by the companies.
Depreciation in the group is calculated in the amount of 11,411,019 EUR of which
10,745,485 EUR belong to the parent company.
Write-offs in the amount of 1,792,359 EUR refer to revaluation expenses. Of which
694,009 EUR are revaluation expenses of fixed assets and 895,340 EUR are value adju-
stments on receivables and value adjustment on stocks.
Analysis of costs by functional groups
Analysis of costs by functional groups does not include revaluation expenses in the amo-
unt of 1,792,359 EUR, which are shown under write-offs in the profit or loss account.
Table 102:Analysis of group's
costs Production
costsCost of sales Cost of man-
agementTotal
in EUR
Cost of goods 51,098,643 51,098,643
Cost of raw material 6,203,821 799,540 484,317 7,487,678
Cost of services 6,021,308 967,452 1,827,246 8,816,006
Labor costs 12,670,548 1,009,429 3,232,498 16,912,475
Depreciation 11,049,947 69,894 291,177 11,411,018
Other operating costs 153,296 20,829 574,707 748,832
Total 87,197,563 2,867,144 6,409,945 96,474,652
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4.3.3. Financial revenue
Financial revenue of Elektro Primorska group amounted to 396,033 EUR of which 167,997
EUR refer to revenues from shares, the rest on interest revenues. Compared to the previ-
ous year they are by 63,420 EUR lower.
4.3.4. Financial expenses
Financial expenses in the amount of 955,812 EUR consist of interest on short-term and
long-term loans, default interest on the late payment of supplier liabilities as well as in-
terest from actuarial calculations. Compared to the past year financial expenses from
banking loans are higher by 81,910 EUR, while default interest of suppliers are lower by
127,243 EUR. Parent company's participation in financial expenses is 92 %.
4.3.5. Other revenues
Other revenue arises from events and transactions, which are not expected to occur
regularly and often.
4.3.6. Other expenses
Other expenses in the amount of 84,646 EUR refer to the accrued compensation for
damage, which Elektro Primorska Company caused during the construction or mainte-
nance, mainly to natural persons, on their land, financial aid and grants and other expen-
ses that are not necessary for business. 93 % of other expenses belong to the parent
company.
4.3.7. Corporate income tax
In Elektro Primorska Group corporate income tax was charged by the parent company in
the amount of 425,011 EUR and controlled company E 3 in the amount of 136.441 EUR.
In the controlled company E 3 disclosure of deferred tax assets in the amount of 14,955
EUR was eliminated.
4.3.8. Net profit or loss
In year 2014 realized profit or loss, before tax return on income of legal persons, amou-
nted to 4,655,809 EUR.
Net profit or loss amounted to 4,079,402 EUR.
4.4. Notes to the consolidated cash flow statement Group cash flow statement is comprised according to direct method from data on tran-
sactions and balances on bank accounts. It presents the changes in monetary assets in
the accounting period. In accordance with the SAS the consolidated cash flow statement
does not include items of inflows and outflows among companies in the group in the
amount of 1,261,739 EUR.
Difference between initial and closing cash balance in the group is the negative cash flow
for year 2014 in the amount of 5,640,133 EUR. In the previous year cash flow result was
positive.
Operations show a positive cash flow, while at investing and financing cash flow is ne-
gative.
Business Report of Elektro Primorska Group | 4. Financial Report of Elektro Primorska Group Business Report of Elektro Primorska Group | 4. Financial Report of Elektro Primorska Group
D148
4.5. Contingent liabilities of Elektro Primorska GroupAccording to the assessment of legal experts disputes are not such as to have a signifi-
cant impact on the economic outturn. Group assesses that provisions formed for these
purposes are high enough and would cover contingent liabilities of the company.
Group has contingent liabilities for issued bank guarantees for tender, for performance
(electricity supply), for elimination of defects during warranty period (in providing services
to external customers).
4.6. Events after the balance sheet of Elektro Primorska Group In year 2015 controlled company ECO ATMINVEST, d. o. o., merged by acquisition with
company E 3, d. o. o.
Table 103: Contingent liabilities
of the group 31.12.2014 31.12.2013
in EUR
Liabilities for guarantee 272,727 1,500,000
Liabilities from pledged property 8,325,948 8,325,948
Bank guarantees 8,832,986 9,134,980
Total 17,431,661 18,960,928
Business Report of Elektro Primorska Group | 5. Management Responsibility Statement – Group Operations D149
5. Management Responsibility
Statement – Group Operations
Management board hereby approves the financial statements of the group companies
for year 2014 and business report of the group for the period between January 1 and De-
cember 31 2014, as well as used accounting policies and notes included in the proposed
annual report.
Management is responsible for preparing the annual report and hereby declares that the
report provides a true and fair picture of the financial condition of the company and its
operating results for year 2014.
Management board hereby certifies that relevant accounting policies were used consis-
tently and that accounting estimates were prepared according to the principles of pru-
dence and due diligence. At the same time it certifies that the financial statements and
notes were prepared on a going concern basis and in accordance with the relevant legi-
slation and Slovene Accounting Standards.
Management board is also responsible for appropriate accounting, for adoption of
appropriate measures to protect the property and prevent and detect fraud and other
irregularities.
In its operation the group strictly abides by the laws and tax regulations, so the manage-
ment of the company does not expect any significant obligations in this respect.
Nova Gorica, April 10 2015 Uroš Blažica,
Chairman of the Board
Business Report of Elektro Primorska Group | 4. Financial Report of Elektro Primorska Group
appendix Area of Elektro Primorska d.d.
Company is 4,335 km2.
Kazalo grafov
Graph 1: Age structure of employees
Graph 2: Structure of employees according to the years of service
Graph 3: Structure of employees according to gender
Graph 4: Number of accidents at work in Elektro Primorska d. d. in the period from 2010 to 2014
Graph 5: Achieved financial effects according to individual OU in year 2014 and 2011 (December 2014)
Graph 6: Monthly electricity consumption peaks in year 2014
Graph 7: Monthly acquired electricity quantities in year 2014
Index of tables
Table 1: Employees overview
Table 2: Number of employees in individual age class
Table 3: Number of employees according to the years of service
Table 4: Number of employees according to gender
Table 5: Educational structure of employees
Table 6: Fizični obseg elektroenergetskih naprav na dan 31. 12. 2014
Table 7: Realization of services for SODO in year 2014
Table 8: Investments according to main investment groups
Table 9: Physical indicators of constructed and reconstructed facilities
Table 10: Overview of investment plan realization for year 2014
Table 11: Monthly quantities of delivered electricity
Table 12: Revenues from network use and supports for year 2014
Table 13: Peak and annual operating hours of Elektro Primorska in year 2014
Table 14: Production of electricity according to primary energy sources
Table 15: Number of interruptions, longer than three minutes
Table 16: SAIFI – System Average Interruption Frequency Index
Table 17: SAIDI – System Average Interruption Duration Index
Table 18: Realization of services for external customers in year 2014
Table 19: Balance sheet (assets)
Table 20: Balance sheet (liabilities)
Table 21: Profit and loss account
Table 22: Statement of comprehensive income
Table 23: Cash flow statement
Table 24: Statement of changes in equity 2014
Table 25: Statement of changes in equity 2013
Table 26: Main indicators of financing
Table 27: Main investment indicators
Table 28: Main horizontal financial structure indicators
Table 29: Main indicators of economy
Table 30: Main indicators of return
Table 31: Changes in intangible assets in year 2014
Table 32: Changes in intangible assets in year 2013
Table 33: Changes in tangible fixed assets in year 2014
Table 34: Changes in tangible fixed assets in year 2013
Table 35: Long-term financial investments
Table 36: Changes in financial investments
Table 37: Long-term operating receivables
Table 38: Stocks
31
32
32
35
38
50
50
30
31
31
32
33
39
39
40
42
46
47
49
51
52
53
53
53
54
64
65
66
67
68
69
70
71
71
72
72
73
81
81
82
83
84
84
85
85
86
86
87
87
88
88
89
90
90
91
92
93
95
97
97
98
98
99
99
99
100
100
101
101
101
102
104
105
105
108
109
110
122
123
124
125
125
126
127
128
128
128
129
129
131
132
133
134
Table 39: Short-term financial investments
Table 40: Short-term operating receivables
Table 41: Age structure of receivables
Table 42: Value adjustment of short-term operating receivables
Table 43: Monetary assets
Table 44: Short-term accruals and prepaid expenditure
Table 45: Capital
Table 46: Provisions
Table 47: Long-term accruals and deferred income
Table 48: Long-term liabilities
Table 49: Short-term liabilities
Table 50: Short-term accrued costs and deferred revenues
Table 51: Operating revenues
Table 52: Analysis of costs by functional groups
Table 53: Costs by nature
Table 54: Remuneration of supervisory board members
Table 55: Labor costs
Table 56: Remuneration of the management board members
Table 57: Depreciation rates
Table 58: Write-offs
Table 59: Other operating expenses
Table 60: Financial revenue
Table 61: Financial expenses
Table 62: Other revenue
Table 63: Other expenses
Table 64: Net profit or loss
Table 65: Receivables and payables
Table 66: Revenues and expenses
Table 67: Contingent liabilities of the company
Table 68: Sub-balance sheet according to the Energy Act (assets))
Table 69: Sub-balance sheet according to the Energy Act (liabilities)
Table 70: Profit or loss account according to the Energy Act
Table 71: Consolidated balance sheet as at December 31 2014 (assets)
Table 72: Consolidated balance sheet as at December 31 2014 (liabilities)
Table 73: Consolidated profit or loss account for business year ended as at December 31 2014
Table 74: Consolidated statement of comprehensive income for year ended as at December 31 2014
Table 75: Consolidated cash flow statement for year ended as at December 31 2014
Table 76: Consolidated statement of changes in equity for year ended as at December 31 2014
Table 77: Consolidated statement of changes in equity for year ended as at December 31 2013
Table 78: Main indicators of financing
Table 79: Main investment indicators
Table 80: Main indicators of financial structure
Table 81: Main indicators of economy
Table 82: Main indicators of return
Table 83: Long-term assets statements of Elektro Primorska Group
Table 84: Changes in intangible assets in year 2014
Table 85: Changes in intangible assets in year 2013
Table 86: Changes in tangible assets in year 2014
Table 87: Changes in tangible assets in year 2013
Table 88: Investment categories
Table 89: Short-term assets of the group
Table 90: Short-term receivables of the group
Table 91: Outstanding receivables from sale and for interest of the group
Table 92: Monetary assets of the group
Tabela 93: Aktivne časovne razmejitve
Table 94: Capital of the group
Table 95: Provisions of the group
Table 96: Long-term accruals and deferred income
Table 97: Long-term liabilities of the group
Table 98: Short-term liabilities of the group
Table 99: Accrued expenses and deferred revenues of the group
Table 100: Operating revenues of the group
Table 101: Operating expenses of the group
Table 102: Analysis of group's costs
Table 103: Contingent liabilities of the group
Oblikovanje: WOAF Design studio, Andraž Filač / Fotografija: Arhiv Elektro Primorska / Tisk: Color Print Nova Gorica
AUKN
BDP
CUO
COT
D
DE
DCV
DV
DVPLM
DVE
EIMV
ERP
EBIT
GIS
GIZ
I
IIS
JR
KBV
KEE
NIS
NN
NR
OVE
RAST
REDOS
RP
RS
RTP
SAIDI
SAIFI
SCADA
SDH
SM
SN
SOD
SODO
SODO EP
SPTE
TP
UDO
URE
UMAR
UKV
VN
VZD
ZSDH
List of Abbreviations
Capital Assets Management Agency of Republic of Slovenia
gross domestic product
use of network price
comprehensive risk management
electricity distribution
distribution unit
remote control center
power line
remotely controlled switch point
domestic energy sources
Milan Vidmar Electric Power Research Institute
enterprise resource planning
earnings before interest and tax
geographic information system
economic interest grouping
investments
integrated information system
public lighting
cable conduit
quality of electricity
network information system
low voltage
internal audit
renewable energy sources
program of operating costs rationalization
development of Slovenian electricity distribution network
substation
Republic of Slovenia
transformer station
average interruption duration index
average interruption frequency index
distribution networks system monitoring
Slovenian Sovereign Holding
standing place
medium voltage
Slovenian Compensation Fund
distribution network system operator
activity of Elektro Primorska d. d., implementing a service for SODO
cogeneration of heat and electricity
transformer station
distribution network management
efficient use of electricity
Institute of Macroeconomic Analysis and Development
ultra short waves
high voltage
maintenance
Slovenian Sovereign Holding Act
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136
137
138
138
139
139
140
141
141
142
143
144
144
145
146
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