annual report - pvps, a.s

ANNUAL REPORTPodtatranská vodárenská

prevádzková spoločnosť, a. s.

PVPS

contentstable ofAnnual Report PVPS, a. s. 20174 Basic data

6 Corporate Statutory Bodies 8 Key Data of 2017

10 Company´s Chief Executive Officer‘s Word of Introduction

12 Company‘s Organizational Structure

14 Our services14 Drinking Water Production

and Distribution 16 Selected Technical Parameters17 The Department for Technical

and Operational Activities18 Water Meters19 Breakdowns in Water Mains Network 19 Water Loss Reduction20 Sewerage and WWTP 20 Breakdown Elimination Overview

- Sewerage Network21 Volumetric Indicators21 Selected Operating Data21 New Operation Contracts22 Water Quality

23 Quality Supervision Department23 Drinking Water23 Wastewater

24 Customers24 Customer Approach24 Projects25 External Communication25 Customer Services26 Satisfaction Rate Survey27 Rates for Production, Distribution

and Wastewater Treatment

28 Top Customers30 Human resources

31 Employees Structure32 Age Structure of the Employees 32 Qualification Structure

of the Employees33 Structure of Employees According

to the Duration of Employment

ANNUAL REPORT 20172

contentsAnnual Report PVPS, a. s. 2017

33 Social Area33 Education of Employees33 Internal Communication34 Occupational Health and Safety

36 Environmental Education & Awareness

37 Educational Projects for Schools37 Slovakia-wide Employee Skills

Competition in Water Sector37 World Water Day37 Photography Contest for Employees37 Excursions for Schools37 Support of Regional Activities

38 Environment39 Waste Management39 Production of Electricity

40 Quality Management System

41 Succesful Maintaining of ISO Certificates

42 Innovations42 Innovations in the Area of Water

Production and Distribution43 Important Reconstruction Activities

and Repair in the Area of Sewerage and WWTP

43 Innovations of the Control System of Production Management

44 Care for Property, Plant and Equipment

44 Repairs by Company Staff 45 Repairs by External Staff45 Investment Purchase

46 Financial part 47 A Commentary on the Economic

Results of the Company48 Balance Sheet50 Profit and Loss Statement51 Cash Flow Statement52 Independent Auditor‘s Report 56 Report by the Supervisory Board56 Intentions for the Year 2018

58 Contacts

Podtatranská vodárenská prevádzková spoločnosť, a. s. 3

Business Title: Podtatranská vodárenská prevádzková spoločnosť, a.sCompany Headquarters:Hraničná 662/17 058 89 PopradDate of Incorporation: 21 December 2004Legal Form: Public Limited CompanyBusiness Identification Number: 36 500 968VAT Identification Number: SK 2021918459Share Capital: 33,200 €Entered in:Commercial Register of the District Court in Prešov in Section Sa, Insert No: 10301/PNet Turnover as of the year 2017: 23,904,644 €Profit/Loss Result Result for the Accounting Period before Tax (EBT): 885,789 €Profit/Loss Result Result for the Accounting Period after Tax: 693,631 €EBT/ Turnover Ratio:885,789 / 23,904,644 = 3.71 %

background data

ANNUAL REPORT 20174

• operationofcategory1publicwatersupplynetworks,

• operationofcategory1publicseweragenetworks,

• intermediationoftradeandserviceswithinthescopeoffreetrades,

• buildingofconstructionsandtheiralterations,

• constructionsupervision,engineeringconstructions–watermanagementprojects,

• laboratorywateranalyses,excludingofficialmeasurements,

• assembly,repair,maintenance,expertinspectionsandexperttestsofelectricalequipment,

• businessactivitieswithinthefieldofhazardouswastemanagementandmanagementofotherthanhazardouswaste.

THE GOAL OF THE COMPANY is to adhere to the scope of business activities to its full extent and to provide that as many inhabitants get connected to the water mains network and sewerage network as possible.

PODTATRANSKÁ VODÁRENSKÁ PREVÁDZKOVÁ SPOLOČNOSŤ, PLC. PROVIDES FOR THE FOLLOWING ACTIVITIES WITHIN THE TERRITORY OF ITS OPERATION:

•conceptofdevelopmentstrategyanddrinkingwatersupply,collectionandtreatmentofwastewater,

• productionandsuppliesofdrinkingwaterforpopulation,industry,andagriculture,

• wastewatercollectionfromtownsandvillages,wastewatertreatment,

• protectionofwatersources,

• laboratoryactivities–chemical,microbiologicalandbiologicalanalysesofwater

THE COMPANY DOES NOT HAVE AN ORGANIZATIONAL UNIT ABROAD.

scope of main business

activities


corporate statutory bodies as of 31 December 2017

ANNUAL REPORT 20176

BOARD OF DIRECTORSRNDr. Tomáš Paclík - chairman

Philippe Guitard - memberIng. Martin Bernard, MBA - member

Ing. Robert Tencer - member Ing. Peter Martinka - member

SUPERVISORY BOARDIng. Ján Mlynár

chairman until 31 October 2017

Ing. Zuzana Kováčová chairman from 1 November 2017

Ing. Jozef Havrila - memberMgr. Zuzana Nebusová - member

Ing. Peter Dobrý - memberVladimír Majkuth - member

Ing. Viktor Haydren, PhD. - member Igor Iľko

- member until 21. March 2017Mgr. Katarína Hamraková

- member from 22. March 2017Ing. Štefan Kováč - member

Mgr. Jan Hrabák, PhD. - member

COMPANY´S EXECUTIVE MANAGEMENT

Ing. Robert Tencer chief executive officer

Ing. Eva Sýkorová finance director

Ing. Mikuláš Kovaľ production director

Ing. Patrik Tkáč, PhD., ACCA sales director


key dataANNUAL REPORT 20178

306,479NumberofPeopleSupplied

522NumberofEmployees

15,654 thous. m3ProducedWaterVolume

35,424 thous. m3TreatedWasteWaterVolume

2,351 km LengthofOperatedWaterMainsNetwork

24NumberofWaterTreatmentPlants

644.97 km LengthofOperatedSewerageNetwork

30NumberofWasteWaterTreatmentPlants

2,053NumberofBreakdownsinWaterNetwork

31.34 %WaterLossinWaterNetwork

44,441NumberofContractualCustomers

46,405 NumberofInvoicingWaterMetersCompany auditor:KPMGSlovenskospol.sr.o.Dvořákovonábrežie1081102Bratislava


we would like to present you the annual report of the company Podtatranská vodárenská spoločnosť, plc. Poprad that brings forward company´s results for the year 2017.

Dear shareholders, business partners, dear customers and colleagues,

Word of IntroductionCompany’s Chief Executive Officer’s

ANNUAL REPORT 201710

Theyearopenedanewdecadeoftheexistenceofour company whose priority is to provide its cus-tomers reliable services regarding drinking watersupplies and wastewater colection and treatmentatalevelrequiredbyouraswellasEuropeangener-allybindingrules.

Theemployeesofourcompanytreated15,654m3of drinking water and collected and treated35,424 m3 of waste water.The company provideddrinking water for 306,479 inhabitants and tookcare of 2,351 km of water mains and 645 km ofseweragenetwork.

Wecontinuedmeetingourcustomersandconsum-ers halfway and helped them to deal with theirdocumentsatourCustomerCareCentresinPoprad,SpišskáNováVesandStaráĽubovňa.ManyofourservicesarealsoavailableonourCompany´sInter-netpage,viaourCallCentre,mobiletelephones,orviaemails.Customercareisalong-termpriorityofourcompany.

Among our high-standard services there are forexamplebreakdownrepairofpartsofwatermainsand sewerage network, water treatment plants,wastewater treatment plants, as well as repair ofoperationalfacilities.

Withinthescopeoffurthereducationthecompanyemphasized the importance of underground andsurfacewatersourcesprotectionaswellastheim-portanceofenvironmentalprotectionbymeansofdiscussionmeetings,excursions,contestsandedu-cationalprojectsforpupilsandstudents.

Duringtheyear2017noeventsoccurredthatwouldhavesignificantlyaffectedthe„ordinaryoperation“of the company. The continuous running of thecompany was not disturbed. The company keepsahighleveloftheintroducedintegratedmanage-mentsystem(ISO9001,ISO14001,ISO18001andISO50001).

Finally,Iwouldliketothankallshareholders,Com-pany Bodies´ members, colleagues, business part-nersandallthosewhohelpedusachievetheresultsintheyear2017.Thankyouforyourconfidenceandcooperationandwehopethatyouwillcontinuetofavouruswithyoursupportnextyearaswell.

Robert Tencer

Chief Executive Officer of PVPS, plc.

Word of IntroductionCompany’s Chief Executive Officer’s


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FINANCEANDTAXESDEPARTMENT

ACCOUNTINGDEPARTMENT

PLANNING,PRICINGANDCONTROLLINGDEPARTMENT

CENTRALPROCUREMENTDEPARTMENT

Finance Director Section

Administration

Occupational Health and Safety Department

Legal and Organizational

Department

PVPS, a.s. Poprad


Sales Director Section

CUSTOMERCARECENTREBACKOFFICE

CALLCENTRE

CUSTOMERCARECENTREFRONTOFFICE

General Assembly

Supervisory Board

Board of Directors

CEO Section

Production Director Section

ADMINISTRATION

DEPARTMENTOFTECHNICALANDTECHNOLOGICALACTIVITIES

CONTROLROOMANDGISDPT.

OPERATIONPOPRAD

OPERATIONSPIŠSKÁNOVÁVES

OPERATIONSTARÁĽUBOVŇA

OPERATIONOFTECHNICALSERVICES

Civil Protection Department

HR Department

IT Department

Quality Supervision


our servicesdrinking water production and distributionPublicwatermainsoperatedbyPVPS,plc.aresuppliedmainly from underground water sources, but therearealso locations inourscopeofactivitywherethecollectionofsurfacewateristhemainsourceofdrink-ingwater.Thecollectedwateristhentreatedbywatertreatment units and in this way quality parametersfordrinkingwaterareachieved.Waterinfrastructuremanagement is divided into regular and irregularmaintenance.Regularmaintenanceincludesthecareforwatersources,collection-pointobjects,waterac-cumulation,pumpingstations,watermainsnetworkand replacement of water meters for our custom-ers.Irregularmaintenanceincludesactivitiessuchaseliminationofemergenciesinthepublicwatermainsnetwork,repairintheareaofwatermainsvalves,re-placementofhydrantnetwork,eventuallyreductionvalvesandotherfittings.Selectedwaterstoragetankfacilities and further operational objects were re-pairedwithinthescopeofirregularmaintenance,aswell.Lastyearthecompanydidnotregisteranyemer-gencies that would have significantly affected con-tinuousdrinkingwatersupplies.Onthebasisofprob-lemsthatoccurintheoperationofpublicwatermainsduringtheyear,draftplansforrepairandinvestmentsarecompiledandelaboratedforthefollowingperiod.

Contract No. Schedule Owner Subject of Contract/Schedule

1. 16/2017/AZ/DV CafeRAZY,s.r.o. OperationofthewatermainTerracedhouses,Mlynskául.Poprad

2. 117/2016/AZ/DV D1 MichalHanečák Operationofthewatermain-IBV*for7detachedhousesSpišskáSobota,Schmoerovaul.

3. 61/2017/AZ/DV ZAMBO,s.r.o. Operationofthewatermain–IBV*for16detachedhousesSpišskáSobota(ZaWalltechom)

4. 71/2017/Z/DV PavolŠoltés Operationofthewatermain–for4detachedhouses(ZaWalltechom)SpišskáSobota,Poprad

5. 72/2017/AZ/DV VEMAR,s.r.o.&spol. Operationofthewatermain-IBV*for5detachedhousesSpišskáSobota,Poprad

6. 85/2017/AZ/DV ObecŠvábovce Operationofthewatermain–IBV*DolinkyII.,Švábovce

7. 167/2017/AZ/DV SKPromotion Operationofthewatermain,II.phaseIBV*Záhumena,SpišskáTeplica

8. 174/2017/AZ/DV SCHEIDEGGERTRAININGINSTITUTEE. Operationofthewatermain–IBV*Poprad-Veľká

9. 177/2017/AZ/DV KOMPAKTSERVIS,s.r.o. Operationofthewatermain–IBV*NováLesná

new operation contracts in 2017


our services

PUBLICWATERMAINSEXECUTEDBYOTHERINVESTORSFORNEWLYCREATEDLOCATIONSMAINLYFORINDIVIDUALHOUSECONSTRUCTIONWERETAKENINTOOPERATION.THEFOLLOWINGINVESTORSANDLOCATIONSARECONCERNED:


1. 16/2017/AZ/DV CafeRAZY,s.r.o. OperationofthewatermainTerracedhouses,Mlynskául.Poprad

2. 117/2016/AZ/DV D1 MichalHanečák Operationofthewatermain-IBV*for7detachedhousesSpišskáSobota,Schmoerovaul.

3. 61/2017/AZ/DV ZAMBO,s.r.o. Operationofthewatermain–IBV*for16detachedhousesSpišskáSobota(ZaWalltechom)

4. 71/2017/Z/DV PavolŠoltés Operationofthewatermain–for4detachedhouses(ZaWalltechom)SpišskáSobota,Poprad

5. 72/2017/AZ/DV VEMAR,s.r.o.&spol. Operationofthewatermain-IBV*for5detachedhousesSpišskáSobota,Poprad

6. 85/2017/AZ/DV ObecŠvábovce Operationofthewatermain–IBV*DolinkyII.,Švábovce

7. 167/2017/AZ/DV SKPromotion Operationofthewatermain,II.phaseIBV*Záhumena,SpišskáTeplica

8. 174/2017/AZ/DV SCHEIDEGGERTRAININGINSTITUTEE. Operationofthewatermain–IBV*Poprad-Veľká

9. 177/2017/AZ/DV KOMPAKTSERVIS,s.r.o. Operationofthewatermain–IBV*NováLesná * IBV (Civil Investment Construction)


our services

selected technical parameters

239 watersources

2,351 km watermainsnetwork

166 waterstoragetankfacilities

15,527 thous. m3 waterproducedforrealisation

24 watertreatmentplants

15,654 thous. m3 waterconsumptiontotal

37 pumpingstations

12,899 thous. m3 undergroundwaterconsumption

4,639 thous. m3 non-invoicedwater

outofwhich:households:7,206 thous. m3

othercustomers:3,263 thous. m3

villageandtownmunicipalauthorities:182 thous. m3

15,527 thous. m3waterproducedwithincompany´s

ownfacilities

5,234 thous. m3 waterpumped

outofwhich:surfacewater:127 thous. m3

undergroundwater:0 m3

198 thous. m3 watersoldtomunicipalities

2,946 thous. m3 watertreated

2,755 thous. m3surfacewaterconsumption

2,222.56 l/scapacityofwaterresources

306,479 customerssupplied

10,653 thous. m3 waterinvoicedtotal

119 emergenciesintheseweragenetwork

35,424 thous. m3 treatedwastewatervolume

127 thous. m3 Industrialwatertotal


number of written opinions to project documentations according to individual centres

the department for technical and operational activities received and processed 2,623 written opinions, out of which were:

TOTAL 2,623

• 957 written opinions concerningthedeterminationoftechnicalcondi-tions for property connection to thepublic water mains or disconnectionof a property from the public watermains and for establishing or remov-ingacustomer´sservicepipe,

• 668 written opinions concerningthedeterminationoftechnicalcondi-tions for property connection to thepublic sewerage or property discon-nectionfromthepublicsewerageandestablishing or removing a sewerageconnection,

• 766 – written opinions regardingothercustomer´srequirements(engi-neering networks, high and low volt-ageadjustments,garages,otherbuild-ingsnotrequiringconnectionstothecivilengineeringnetworks),

• 232 – extending of public watermains network, public sewerage net-work, IBV (Civil Investment Construc-tion),reconstructionandrelocationofwater work networks, completion ofwater mains network and seweragenetwork, territorial plans, shoppingcentres,sportsfacilities.

POPRAD 1,658SPIŠSKÁNOVÁVES 619STARÁĽUBOVŇA 346

PP

SN

SL


AS OF 31 DECEMBER 2017, 46,556 INVOICING WATER METERS IN TOTAL WERE INSTALLED WITHIN THE PUBLIC NETWORK.

water metersOut of them, 24 water meters were demounted and sent for official test-ing and by the end of the year the company received a negative result in two cases only. In total, 8,103 water meters were repaired.

our services


In order to decrease the number of emergencies we focused on preparation and elaboration of plans for reconstruction of the parts of the water supply network with the most frequent breakdowns, completion of measurement transfers to the control room and monitoring of critical sections.A group for detecting emergencies in water mains was concerned not with detection of emergencies only but also with staking out water supply network for investment activities of external buyers. At the same time cyclical monitoring (acoustic leak detection) in the water mains network was carried out.

water loss reduction The volume of non-invoiced water (as well as water loss) was decreased mainly by cyclical examination of the water mains network and the subsequent elimination of water leakage from wa-ter mains. Water loss which is the larg-est segment in non-invoiced water in volumetric terms occurred mainly in outdated steel and grey cast iron water pipes. The next segment in non-invoiced water is the company´s own consump-tion where the volumes are still signifi-cant as desludging and flushing water pipes has to be carried out more and more frequently because of decreased water consumption and in order to se-

cure standard quality water in the water mains pursuant to the effective legisla-tion (namely concerning the indicator of iron). The number of breakdowns in water mains network rises regularly in transient seasonal periods such as winter – spring and autumn – winter which occurs because of the movement of soil (freezing and thawing). In order to decrease the number of breakdowns we focused on the preparation and elaboration of reconstruction plans for the parts of the network with the most breakdowns, completion of measure-ment transfers to the control room and monitoring of critical sections.

breakdowns in water mains networkCENTRE WATER-PIPE

ROWWATER SERVICE-

PIPE CONNECTION TOTAL

POPRAD 620 81 701

SPIŠ. NOVÁ VES 376 511 887

STARÁ ĽUBOVŇA 167 298 465

TOTAL 1,163 890 2,053


Among the priority activities of the production operation of Sewerage and Wastewater treatment plants are trou-ble-free disposal of wastewater effluent and wastewater draining, maintenance, cleaning of sewage pipes, removal of breakdowns, water treatment, raw ma-terial and waste management. We moni-tor the impact on the environment – not only on the quality of water in recipients in which we discharge treated water - but also the impact of the operation on the environment and the inhabitants in

the built-up areas, and also the impact on the natural environment in the corri-dors of the sewage pipe network. A con-siderable part of the operated area be-longs to Tatra National Park /TANAP/. It is of course much more difficult to manage our activities in areas such as national parks or protected areas as they require a special regimen and our activities are monitored by several institutions. We take part in all negotiations at all stages of the investment construction, exter-nal repair, deal with requirements and

complaints and give opinions on their necessity. We contribute to a better over-all information and awareness among people we meet at work. We cooperate with municipal authorities and take part in preparation and provision of construc-tion plans in the respective locations.In total, waste water was carried away from 221,455 households and industrial plants in six districts – Poprad, Spišská Nová Ves, Kežmarok, Levoča, Gelnica and Stará Ľubovňa. Wastewater was treated at 30 wastewater treatment plants.

breakdown elimination overview - sewerage network

sewerage and WWTP

CENTRE SEWERAGEROW SEWERAGECONNECTION TOTAL

POPRAD 59 0 59

SPIŠSKÁ NOVÁ VES 33 0 33

STARÁ ĽUBOVŇA 27 0 27

TOTAL: 119 0 119

our services


selected operational data

volumetric indicators in thous. m3

Indicator Reality

Wastewater drained total 35,871

Wastewater drained (invoiced) 10,805

out of which:

Households 6,347

Other producers 4,458

included in it:

Rainfall water 2,485

out of which: Households 864

Other producers 1,621

Water treated 35,424

Water untreated 447

Based on invoices

10,805 tons of solid

sludge were disposed

of, out of this amount,

2,135.18 tons were dry sludge.

No. of waste water treatment plants 30

No. of projects equivalent to the no. of inhabitants (EO) 343,822

No. of actual EO – year 264,073

Projected capacity of WWT Plants 103,398.3 m3/day

Projected flow Q24 1,196.8 l/s

Actual flow Q24 per year 1,122.9 l/s

No. of sewer network connections 27,928 ks

Length of sewer network excluding connections 644.97 km

No. of breakdowns in sewer network 119

sewerage and WWTP

INVESTOR-OWNEDSEWERAGETAKENINTOOPERATIONUNDERACONTRACTFROMINVESTORSnew operation contracts


1. 565/05/AZ/DOvDK Obec Ľubica Sewerage operation for the year 2017

2. 17/2017/AZ/DK CafeRAZY, s.r.o. Sewerage operation Terraced houses Ul. Mlynská Poprad

3. 62/2017/AZ/DK ZAMBO, s.r.o. Sewerage operation IBV* for 16 detached houses Sp. Sobota (za Walltechom)

4. 73/2017/AZ/DK VEMAR, s.r.o. & spol. Sewerage operation IBV* for 5 detached houses Sp. Sobota, Poprad

5. 86/2017/AZ/DK Obec Švábovce Sewerage operation IBV* Dolinky II.,Švábovce

6 300/07/AZ/DKaČOV D6 Obec Spišský Štvrtok Sewerage operation and WWTP (Eurofonds)

7. 175/2017/AZ/DK Scheidegger Training Institute E. Sewerage operation IBV* Poprad - Veľká

8. 178/2017/AZ/DK KOMPAKT SERVIS, s.r.o. Sewerage operation IBV* Nová Lesná

9. 31/2017/Z/DK Spoluvlastníci Ing. Strmeň a spol. Waste water drainage operation IBV* Modrý vrch, II. phase, Spišská Nová Ves

10. 183/2017/AZ/DK SK Promotion, s.r.o. Waste water drainage operation IBV* Zahumena, Spišská Teplica, II.phase * I

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water qualityANNUAL REPORT 201722

The Quality Supervision Department pro-vided for the inspection of the quality of water resources, fresh water treatment plants, group municipal water mains, water storage tank facilities and at the points of final consumption. Drinking water supplied to the public water mains is clean, without harmful

were monitored are in concordance with the Public Notice No.: 269/2010 Coll. and related legal regulations in force con-cerning waste water. The observance of the regulated limits of waste water dis-charged into the recipients is monitored, in order to ensure that no harm to the environment is caused.

Water Storage Tanks and Water Transmission Network

Microbiological and Biological Indicators

Physical and Chemical Indicators

Overall No. of Samples/No. of Non-Compliant Samples 744/25 673/19

Overall No. of Analyses/No. of Non-Compliant Analyses 8,589/37 8,281/25

Quality of drinking and waste water is examined in regular intervals by the Testing Lab-oratory of the Department of Quality Inspection (SLÚKK). SLÚKK performs its activi-ties pursuant to the Accreditation Decree of S-250, issued by the Slovak National Ac-creditation Service in Bratislava. The testing laboratory showed again its ability to carry out the tests unbiased and trustworthy, within the meaning of STN EN / ISO 17025. Laboratory activities include physical and chemical tests, microbiological and biologi-cal tests of underground, technological, drinking and waste waters as well as sludge, including sampling of drinking water and waste water.

drinking water

waste water

substances, its quality is monitored in systematic intervals and is in accordance with the Notice of MZ SR No. 247/2017 Coll. (Ministry of Health of the Slovak Re-public) which specifies the requirements for drinking water quality. Based on con-tinuous monitoring of drinking water quality within the water mains, it is pos-

The Laboratory processed the total num-ber of 4,273 waste water samples, out of which: 4,017 samples of wastewater and sludge were taken from waste wa-ter treatment plants, 48 samples from untreated outlets, 166 samples from pro-ducers and 42 waste water samples from water treatment plants.

quality supervision department

sible to state that the quality of drinking water meets the European standards as viewed from physical, chemical, microbi-ological and biological aspects.The drinking water laboratory tested the quality of drinking water in 1,417 sam-ples. 96,8 % of samples taken were of satisfactory quality.

Waste water Laboratory carried out qual-ity inspections focusing on the quality of waste water and sludge from the outlets of particular technological stages in the process of waste water treatment within our waste water treatment plants and also on the inspections of the producers of industrial and foul waste water. The extent and the number of samples that


customers

The company approaches customers who found themselves in an unfavour-able financial situation individually by solving each particular situation. Dur-ing the last year, 717 repayment plans were concluded, so we accepted 98 % of requests recorded. What is more, our first smart water meter readers were tested successfully thanks to which our employees can monitor water remotely even at those water meters that are dif-ficult to access. They can also eliminate possible human errors. This wireless water meter reading will be carried out much faster than the ordinery one. It can also detect possible water leakage, so that the customer can prevent un-expected costs connected with a break-down at the point of final consumption.

customer approach

projectsAt the beginning of the year we changed over successfully to the water and sewer billing in form of a two-component price pursuant to a regulation of URSO (the Regulatory Authority for Network Indus-tries). Beside water and sewer rate we also billed our customers for their water meter of the respective tariff group. The total billing amount was higher only in the case of zero or minimum water con-sumption. Consequently, in March 2017 we adopted a new regulation pursu-ant to the Notice of URSO (the Regula-tory Authority for Network Industries) No

21/2017 Coll. – to return all the invoices to their previous settings along with the retrospective force of the one-component price. In total, we issued 9,160 corrective invoices to the invoices with the two-component price.In order to detect unauthorised sewer connection, our employees checked the inflow points by means of a smoke gen-erator. The device helps us effectively de-tect waste water producers who have not entered into a contract with our company regarding waste water draining yet.In the end of the year we started first pre-


Important elements of company´s exter-nal communication are mainly electronic means – company website, email com-munication, telephone calls. As far as press materials are concerned, we issue various leaflets, brochures and bulletins for our customers. The regular participa-tion in the Slovakia-wide trade fair for water, hydropower, environmental and

We try to offer better and better services to our customers. Employees at our Cus-tomer Care Centres and the managers from the Sales Department successfully completed an educational programme focusing on communication with cus-tomers, typology of problems and prob-lem solving as well as assertiveness.The quality of services provided are guaran-teed by the adopted commitments of customer services – availability, custom-er awareness and solidarity.We provide our services in person at our Customer Care Centres in Poprad, in Spišská Nová Ves and in Stará Ľubovňa. If our customers prefer a telephone con-tact, we are available at the Customer Care Line of our Call Centre on weekdays from 7:00 am to 5:00 pm where we dealt with more than 13,000 telephone inquieries. We also solved problems re-ported by customers in the water mains or in the sewerage network 24 hours daily non-stop. Customers contact us often in order to report unavailability of their water meters because of their ab-sence from home at the time of water meter reading within 3 business days or because they want to clear misun-derstandings in the billing for water supplies and and sewer collection, they establish or alter their monthly up-front payments via SIPO or via standing or-ders, inform themselves on overpay-ments, payment reminders, file com-plaints, or they are interested in our services (new service connection, water meter installation, opinion to a building procedure, staking out engineering net-

works, ordering a cistern, water analy-ses, cesspool/ septic pumping, sewer cleaning, etc.)We registered a growing trend in elec-tronic communication which means sending invoices for water supplies and sewer collection mainly in an electronic form. As of the end of the year 2017 we registered more than 1,600 customers whom we sent more than 4 thousand on-line invoices. During the year the number of customers using the service of an electronic invoice rose by 25%. We received 2 thousand customer re-quests in total and these were solved within 24 hours. In total, we sent 9,432 text messages regarding breakdowns, emergencies, planned outages that are sent to our clients within the scope of the free service: Text message informa-tion. 2,322 customers registered for the service „Internet Customer Account“ which is an increase by 257 new cus-tomer accounts for the last year. For the customers registered for this service is the following available: basic data, rates, payments, displayed regulations, water meter places and water meter reading, or they can enter their requests regard-ing payments, address and contact de-tails, report water meter status.We offer households to pay in form of advance payments via standing orders or collection of money. Invoices can be paid at our cash desks at our Customer Care Centre (cash or cashless), by bank transfer, at post offices or via payments at COOP Jednota supermarkets (UNI-KASA service).

municipal engineering Aqua in Trenčín, organized together with Stredoslovenská vodárenská prevádzková spoločnosť Ban-ská Bystrica, has become an important presentation activity. All forms of com-munication answer the purpose of creat-ing a positive perception of the company image among customers, business part-ners, institutions and authorities.

parations connected with the pilot project of remote water meter reading. The goal of the preparations was to choose a loca-tion with points of final consumption that are difficult to access in terms of tradition-al water meter reading or a location with unpredictable conditions of mountain environments. Finally, Štrbské Pleso and forest park Lesopark Kvetnica were chosen as testing locations. We hope that in 2018 our pilot project proves effective (water meter reading, billing, lifetime) and that our customers will be able to use our new smart meters for a fee.

external communication

customers services


satisfaction rate surveyLast year again, the company had an external customer satisfaction rate survey elaborated through which it receives customer feedback. From the data received we get an overview how customer satisfaction rate changes year-on-year and it shows us what areas we have to focus on. The survey also provides information about what services are preferred most by our customers.The survey was carried out by an ex-ternal company via standardized tele-phone calls on a sample of randomly selected 500 customers from all activ-ity spheres of the society. The first six questions focused on the overall sat-isfaction and the next six questions asked about customers preferences.The average overall satisfaction with our services reached 92.43%. Com-pared to the average overall satisfac-tion for the previous year it rose by 0.40%. The increase definitely encour-ages our company as it is a result of work of all our employees.

In the survey, we included customers who had not come into a direct con-tact with our company and could not answer the above mentioned ques-tions. If we do not take the latter re-spondents into consideration, the overall satisfaction with the services provided is then 93.05%.The company perceives the satisfac-tion rate survey as an important in-dicator showing where the company is going. The results are analyzed and improvement is approached respon-

sibly in order to build up a good repu-tation among customers. Emphasis is continuously put on further education of all employees. Steps undertaken by the company contribute to a con-tinuous improvement and reaching the goal – to be a customer-oriented company.

overall resultsLEVEL OF SATISFACTION WITH SERVICES PROVIDED

92.20 %

SATISFACTION WITH PAYMENT METHODS OFFERED

91.60 %

SATISFACTION WITH QUALITY OF DRINKING WATER

96.80 %

SATISFACTION WITH PROFESSIONALITY OF EMPLOYEES

87.20 %

SATISFACTION WITH WATER SUPPLIES AND WASTE WATER COLLECTION

92.80 %

SATISFACTION WITH QUALITY OF INFORMATION PROVIDED

94.00 %


Maximum prices for drinking water pro-duction, supply as well as for distribution by means of public water mains have remained unchanged since 1st January 2014. Maximum price for wastewater collection and treatment by means of public sewerage has remained unchan-ged since 1st July 2015. At the beginning of the year our company introduced a two-component water and sewer rates according to a Notice by URSO /Regu-latory Authority for Network Industries/

that cancelled the original decision No. 0094/2017/V from 8th December 2016 on the introduction of the two-compo-nent price from 1st January 2017 and water and sewer rates were brought back to the previous level of a one-com-ponent price. Beside a charge for water supply and sewer collection the cancel-led two-component price should have included a fixed charge for the point of final consumption according to the no-minal flow of the installed water meter.

On 1st March.2017 our company recei-ved a pricing decision No. 0215/2017/V from URSO /Regulatory Authority for Network Industries/ for the period from 1st January 2017 till 31st December 2021 when we proceeded pursuant the valid legislation – URSO Notice No 21/2017 Coll., by which the price regulation of drinking water production, distribution and supply by means of public water mains and collection of waste water by means of public sewerage is stipulated:

The price development is influenced by the development of justified costs, as well as by realized drinking water production, distribution and supply by means of public water mains as well as waste water collection and treatment by means of public sewerage in technical units.

IN 2017 THE COMPANY:

rates for production, distribution and drinking water supplies and wastewater treatment

95,560water and sewer

invoices

67 thousandpersonal, telephone, postal

and electronic contacts with customers

registered more than issued sent

7,590reminders

717repayment plans

were entered

Rates valid from 1st January 2017 to 31st December 2021

1.0884 €/m3 VAT exclusive



MAXIMUM RATE FOR DRINKING WATER

PRODUCTION AND SUPPLY BY PUBLIC WATER MAINS

MAXIMUM RATE FOR DRINKING WATER

DISTRIBUTION BY PUBLIC WATER MAINS

MAXIMUM RATE FOR DRAINING AND

TREATMENT OF WASTEWATER BY PUBLIC SEWERAGE


top customersBytové družstvo Spišská Nová Ves (HousingAssociation)(IČO 00174505)

Popradská energetická spoločnosť, s.r.o. (EnergyCompanyofPoprad,Ltd.) (IČO 50339729)

EMKOBEL, a.s.(plc.) (IČO 31736785)

Tatranská mliekareň a.s. (TatraMilkPlant,plc.)(IČO 31654363)

Tatranský správcovský dom s.r.o. (TatraManagerialHouse,Ltd.)(IČO 46764178)

Spravbytherm s.r.o. (Ltd.) (IČO 36690856)

SLOBYTERM, spol. s r.o. (Ltd.) (IČO 31719104)

TATRAVAGÓNKA a.s. (plc.) (IČO 31699847)

Okresné stavebné bytové družstvo Stará Ľubovňa (DistrictCivilHousingAssociation) (IČO 31673821)

Bytový podnik Poprad, s.r.o. (HousingBusinessPoprad,Ltd.)(IČO 36451967)


top customersWHIRLPOOL SLOVAKIA spol. s r.o. (Ltd.) (IČO 35796570)

Bytový podnik Svit, s.r.o. (HousingBusinessSvitLtd.)(IČO 36816949)

Bytové družstvo Kežmarok (HousingAssociation)(IČO 36168807)

AQUAPARK Poprad, s.r.o. (Ltd.) (IČO 36482609)

Mesto Poprad (TownofPoprad)(IČO 00326470)

Stavebné bytové družstvo Levoča (DistrictCivilHousingAssociation)(IČO 00594423)

Nemocnica Poprad, a.s.(HospitalPoprad,plc.)(IČO 36513458)

SOREA, spol. s r.o. (Ltd.) (IČO 31339204)

Mesto Spišská Nová Ves (TownofSpišskáNováVes)(IČO 00329614)

TATRY - TEPLO, s.r.o. (Ltd.) (IČO 36486311)


human resources


518PHYSICALHEADCOUNTOFEMPLOYEESASOF31

DECEMBER2016

At the beginning of the year the physical headcount totalled 518. During the year 34 new employees joined the company (including external staff, such as employees after parental leave) and 30 employees left our company. As of 31st December 2017 the physical headcount was 522. The average calculated number of employees for the year 2017 was 509.30 – which was by 5.7 employees less compared to the plan.

employment structure

34

30 522

509.3

outofwhich:temporarycontract...30permanentcontract...0

externalstaff...4

outofwhich:§60ofthelabourcode-contracted...15§70ofthelabourcode-temporary...0

§63oftheLC-organizationalreasons...0Otherreasons(disability,deaths,

earlyretirement,..)...5goingintotheexternalstaff

database...4leavingasaresultof

retirement...6

GROWTHINTHENUMBEROFEMPLOYEES

DECLINEINTHENUMBEROFSTAFF

PHYSICALHEADCOUNTOFEMPLOYEES

ASOF31DECEMBER2017

AVERAGERECORDEDCALCULATEDNUMBER

OFSTAFFIN2017


age structure of employeesAge Female Male Total

20-24 0 7 7

25-29 7 11 18

30-34 7 15 22

35-39 10 26 36

40-44 15 55 70

45-49 21 67 88

50-54 25 92 117

55-59 19 83 102

over60 5 57 62

Total 109 413 522Average Age 47.56 49.53 49.13

qualification structure of employeesEducation Degree Female Male Total

Elementary 5 16 21

SecondaryVocational 9 210 219

SecondaryVocational+LeavingExam 48 152 200

HigherVocational 1 0 1

UniversityDegree 46 35 81

Total 109 413 522

111526

7

5567928357

7710

0

152125195

20 - 24

25 - 29

30 - 34

35 - 39

40 - 44

45 - 49

50 - 54

55 - 59

over 60

20 - 24

25 - 29

30 - 34

35 - 39

40 - 44

45 - 49

50 - 54

55 - 59

over 60

FEMALE MALE

Elementary

Secondary Vocational

Secondary Vocational + Leaving exam

Higher Vocational

University Degree

152

16210

048

59

1

FEMALE

MALE3546


structure of employees according to duration of employment

The electronic communication and the Intranet belong to the most effective communication tools among our em-ployees. In a short-time-interval they help inform our employees on current events, orders, regulations, requirements, guidelines and other important rules.Within the VEOLIA group and in coop-eration with Stredoslovenská vodáren-ská prevádzková spoločnosť / Water

operation Company of Central Slovakia/ we publish the magazine „Voda je život – Water is Life“ for our employees on a regular basis that comes out four times a year. Via the electronic memo of the Veolia group “La letter”, information on innovative technologies from the whole world are available to our employees. The memo is sent from our centre – from Par-is in four world languages each month.

For our employees who do not have ac-cess to the Internet, company notice boards are available. Apart from this, workshops and meetings beyond com-pany control between the company´s management and the subordinates, as well as various activities are a regular and an important communication means.

internal communication

The total costs incurred by the company for educational purposes amounted to the sum of 28,128.81 €. The average costs for educational trainings per em-ployee amounted to the sum of 55.23 €.The compulsory trainings (stipulated by legislative decrees) amounted to the sum of 11,632.50 €, language courses 5,104.00 € and further training courses and seminaries, etc. amounted to the sum of 11,392.31 €.

The total number of training courses at-tended amounted to 1,072 of the total length of 9,651 hours, out of which the number of hours dedicated to health and safety trainings totalled 4,118. The company focused mainly on the development of professional skills and competence in employees, increas-ing and extending their professional qualifications, knowledge and skills. The corporate staff attended compulsory

trainings in given dates, determined by special regulations.An important part of the employment education of staff members were regu-lar training courses in the field of occu-pational health and safety and fire pre-vention which apart from the planned ones were attended by all newly recruit-ed employees.

education of employees

Last year the social fund created by the company amounted to the sum 92,022.48 € including the fund balance from the previous year (9,078.60 €) and the allocation of profit (18,879.27 €). It was drawn for various purposes, mainly as a contribution to catering of our employees (50,289.35 €), to recreation, sport and the regeneration of workforce (18,792.61 €), to regeneration of work-force regarding major work and life anni-

versaries of our employees (12,659.00 €) and in the social area (4,165.00 €). The social fund balance amounting to the sum of 6,116.52 € will be used in the year 2018.Within the frame of social expenses the company contributed to the additional pension fund schemes of our employ-ees totalling the sum 155,941.52 €, to catering of our employees (apart from the social fund) amounting to the sum

of 241,986.83 €, to health care amount-ing to the sum of 27,463.45 €, to drinking regimen 1,330.62 €, for temporary sick leave totalling to the sum of 21,175.23 €. Severance money and retirement ben-efits were paid totalling to the sum of 54,484.88 €. out of which the severance money was paid to employees whose employment, according to a medical opinion, ended because of a long-term loss of their ability to perform their work.

social area

77

97

127

221

under 5 years

under 10 years

under 20 years

over 20 years


occupational health & safety


The Integrated Management System (ISM) that includes Quality Management System (ISO 9 001), environmental management system (ISO 14 001), occupational safety and health management system (OHSAS 18 001) and energy management system (ISO 50 001) brought effectiveness to our production processes and services provided. The result becomes evident in the quality of products as well as in the attitude to the environment, energetics and in the area of health and safe-ty at work.Adopting commitments and setting goals that concerned decreasing dangers and haz-ard in all operations of our company directly contributed to a safer work environment. Last year only one work accident was regis-tered however, we did not register any work-related illnesses at our company.In the monitored period 300 alcohol screen-ing tests were performed in order to check possible use of alcoholic drinks during work-ing hours out of which 300 were negative. Further check-ups and inspections focused on observing health and safety rules and further regulations that ensure health and safety at work, safe work procedures and safe behaviour at work. The duty of distribution, wear and use of respective personal protec-

tive equipment /PPE/ at work was examined. No fine was imposed upon the company for non-observance of health and safety regula-tions at work.In the department of fire prevention regu-lar fire prevention inspections of buildings and rooms were carried out on determined dates. Within the scope of prevention in-spections fire extinguishers, hydrants, fire protection valves, and further fire protection devices were examined. Also, regular revi-sions of electrical tools and selected techni-cal equipment were carried out according to the respective schedule. Expert training of fire patrols at workplace and employees en-suring fire protection in non-working times continued. All precautions and measures led to the fact that there has not been fire in the objects of the company for a long time. The result of the controls of the Fire and Rescue Corps of the Slovak Republic was a finding that the company fulfils all its duties in the Fire protection department.The permanent goal of the Department of Health and Safety at Work and Fire Preven-tion as well as the whole company is that all our employees are able to perform their duties in a safe environment without any health hazard.

The permanent

goal of the Department

of Health and Safety at Work

and Fire Prevention as well

as the whole company is that

all our employees are able to

perform their duties in a safe

environment without any

health hazard.


environmental education and awareness


support of regional activitiesAt the level of social responsibility we support various acti-vities and events our region develop. In order to provide the necessary drinking water regimen we supply drinking water in water tank trucks at various large social events (traditio-nal annual Marian pilgrimage in Levoča, summer music fes-tivals, sports and cultural events), we also provide material and non-material resources for organisation of regional and international competitions (ice-hockey, basketball, skiing, fit-ness, aerial sports, dance competitions, chess tournaments and various school and out-of-school activities).

educational projects for schoolsIn cooperation with Stredoslovenská vodárenská prevádzková spoločnosť, a.s.( Water Operation Company of Central Slova-kia, plc.) we joined a two-year educational project for primary schools called „Tajný život vody“ (Secret Life of Water). Each school participating in the programme received a tablets for taking photographs of plants and their determination with the help of the mobile application Pl@ntNEt. One of the tasks of the project was creation of an information campaign on biodiversity discovered by children in their town. Thanks to the tablets they could take pictures about it and then pres-ent their projects in an interesting way to the public. Out of 50 schools participating in the project 3 schools whose, infor-mation campaign was the most original and addressed the widest spectrum of public, were chosen. The winners became: Kukučínova Primary School in Detva, Tajovského Primary School and Nursery School in Poprad and Ivan Krasko Gram-mar School in Rimavská Sobota. For all winning teams stays had been prepared at the Educational Centre in Záježová.

photography contest for employeesIn summer months we regularly organize a Company Pho-tography Contest for our employees focusing on an envi-ronmental topic. The main topic of the last year´s contest was „Water Games“ in which 18 of our employees took part. Three most original photographs were awarded and the win-ners received promotional packets from our company.

world water dayIn the testing laboratory of the Department of Water Quality, 534 drinking water analyses were carried out free of char-ge where water was tested for nitrates – water brought by our customers who had no possibility to get connected to the public water mains or whose drinking water might have been polluted by nitrates through keeping livestock or other agricultural activity.Out of all samples analyzed, the maximum nitrate limit 50 mg/l, which means 15,7% of overall contamination, was exceeded in 84 samples. The highest nitrate concentration 300.0 mg/l was detected in the water sample from a well in Toporec. The best indicators were detected from samples from the surroundings of the town of Poprad that reached only 6,2% contamination.The samples from the surroundings of the town of Stará Ľubovňa reached 18,5% contamina-tion. The most adverse results were measured in the district of Spišská Nová Ves – 23,3% contamination.

excursions for schools Througout the year our company offers excursions into se-lected water company objects and wastewater treatment plants to school groups. Pupils and students have a possi-bility to visit different production processes of water com-pany facilities. Apart from exterior visit we inform them through presentations on various technologies and innova-tions of the company.

slovakia-wide employee skills competition in water sectorThe annual Slovakia-wide competition of employee skills in water sector belongs to important events for employees. Last year the competition was organized by Západosloven-ská vodárenská spoločnosť, a.s. Nitra (Water Company of Western Slovakia, plc. Nitra). As usual, the completion was divided in two disciplines “A” – assemblyman and “B” – find-ers. The winner was the organizing company ZsVS, a.s. Our company was ranked the 8th place in the competition.The activity enables our employees to compare their tech-nical skills with those of their colleagues, to follow the in-novations in the technological area and to exchange their experience in the water sector.

environmental education and awareness


environment


In the area of waste Management, the disposal of waste was in compliance with the valid laws and regulations and with the permission for disposal of hazardous waste. During the operation of facilities, 2,171.59 t of waste out of which 2.852 t of hazardous waste was produced. Their removal and disposal was provided by contracting partners. Yearly reports on waste amount were sent to the respective environmental authorities according to schedule.

waste management

production of electricity

11,332.29 t

TOTAL11,335.52 t

3.225 t

2016

AMOUNT OF OTHER

WASTE

AMOUNT OF HAZARDOUS WASTE

11,332.29 t 2,168 t

2017

2,168 t

T-OTAL2 171,59 t

2.852 t

AMOUNT OF OTHER

WASTE

AMOUNT OF HAZARDOUS WASTE

The company has in its premises small and medium-sized sources of air pollutants. In total, 28,95881 t of pollutants were discharged into the air from small and from medium-sized sources. Reports on their amounts were sent to the re-spective environmental authorities according to the sched-ule and based on them charges were levied on discharging emissions into air.

Production of electricity at cogeneration unit at the Waste Water Treatment Plant in Poprad-Matejovce included 522,786 kWh. Compared to the year 2016 a decrease by 135,673 kWh was registered which was caused for the fol-lowing reasons:

• In February 2017 a planned general repair of the cogeneration unit was carried out,

• From October to November the sludge digester VN1 was shut down for cleaning

By means of effective use of sludge gas when generating electricity at the co-generation unit, costs for purchasing electricity from our supplier are significantly saved. By pro-ducing electric energy, the costs for its purchase were de-creased by 61.752 thousand €.


quality management system


leader in providing certification services with a long-term tradition.All activities and processes of the company, upholding the goals in terms of quality, en-vironmental protection, energetics and oc-cupational health and safety were exam-ined. In their final assessment the auditors positively assessed highly set ISM goals, process performance, their monitoring, professional knowledge of our employees, improvements concerning hazard and threat reduction as well as environmen-tal load reduction and also reduction in energy demands. Successfully completed audits confirmed the functionality of the implemented integrated management system. It was also confirmed that all four systems are kept in line with the require-ments of the respective standards.The company thoroughly obeys the re-quirements of the standards throughout the year which was examined continu-ously by eight internal and two external audits carried out in individual depart-ments of the company. External auditors from Stredoslovenská vodárenská pre-vádzková spoločnosť, a. s. /Operational Water Company of Central Slovakia, plc./ took part in internal audits. Even though a positive change in employees approach to the environment, to the quality of ser-vices provided and to upholding health and safety is becoming obvious, the com-pany undertakes to constantly ensure the highest level of the integrated man-agement system.

Company Management tries to build a high level of quality of service connected with drinking water supplies and waste water collection. At the same time it pays attention to environmental protec-tion and puts an emphasis on health and safety at work.The company has been using the Inte-grated Management System (IMS) that consists of Quality Management System (ISO 9 001), Environmental Management System (ISO 14001), Energy Management System (ISO 50001) and Occupational Health and Safety at Work Management System (OHSAS 18001). Merging several management systems into one integrated system is a very effective way of creation of a management system that takes not only quality of products and services, but also environmental approach, health and safety at work as well as saving energy and financial sources into consideration.From 6th – 8th November 2017 the fol-lowing audits were carried out at our company: 7th Supervisory Audit pursuant to the international standard STN EN ISO 9001:2009, 5th Supervisory Audit pursu-ant to the international standard STN EN OHSAS 18001:2009, 4th Supervisory Audit pursuant the international standard STN EN ISO 14001:2005 and 2nd Supervisory Audit pursuant the international standard STN EN ISO 50001:2012. All the audits were carried out by the Certification Com-pany TÜV SÜD Slovakia, Ltd. Bratislava, group member of TÜV SÜD, the world

succesful maintaining of ISO certificates


In the towns of Poprad, Kežmarok, Spišská Belá, water supply network was renovated and reconstructed,

in Stará Ľubovňa the water supply network was reconstructed in Zámocká street,

in the village of Reľov, water supply pipe was reconstructed fom the water storage tank to the village,

in the village of Matiašovce – water supply network reconstruction was carried out and the public water mains were extended in the part of the village „Za potokom“,

in the village of Hniezdne – water distribution network was reconstructed,

in Nová Ľubovňa – pipeline network was reconstructed below the brook Kolačkovianka,

at the automated pressure station Matiašovce, the tech-nology was reconstructed and the pumps were replaced,

at the water treatment plant Lomnička, filter No 1 was reconstructed, new filtration system was supplied,

by means of our own staff, hydrants and slides in the water supply network v Podolínec, Stará Ľubovňa and Jarabina were replaced,

from our own sources, the roof of the object „Sedimentation tank“ at the water treatment plant Jakubany was repaired and water leaks were eliminated – water storage tank repair.

In November reconstruction of the water treatment plant in Štrbské Pleso started. The purpose of the reconstruction is to modernize the plant with regard to the technology and the building of the facility.

innovations in the area of water production and distribution

innovations

INCOOPERATIONWITHPVS,PLC.POPRADWECARRIEDOUTRECONSTRUCTIONANDRENOVATIONOFWATERSUPPLYNETWORKPARTSINTHEFOLLOWINGLOCATIONS:


innovations

Adding further possibilities of water distribution monitoring and managing contributed to a better monitoring of quality indicators. Reconstruction and completion of the Control Manage-ment system at the water treatment

Last year the following Waste Water Treatment Plants (WWTP) were put in testing operation after reconstruction: WWTP – Stará Lesná, WWTP Hranovni-ca, WWTP – Liptovská Teplička. At WWTP Kežmarok and WWTP Spišská

control room. Operational activities in the production programme PTIS (op-erational/technical information sys-tem) were interconnected by a new economics software Helios Green with the order system.

269/2010 Coll., that stipulates the re-quirements for achievement of good water condition and ensures reduc-tion of pollution of the surface waters of the rivers Poprad and Hornád by waste water.

innovations of the control system of production management

important reconstruction activities and repair in the area of sewerage and WWTP

plant Popradské pleso was carried out. A part of the analog radio network was changed into digital technologies and hardware and software system equip-ment was updated within the scope of the programme equipment of the

Nová Ves the testing period was com-pleted. The results of testing opera-tions received up to now meet the re-quirements of the national legislation, especially those included in the Act of Government of the Slovak Republic No


care for property, plant and equipment

By means of its own staff the company carried out planned and non-planned repairs as well as maintenance on wa-ter mains, sewerage system and fur-ther objects, on the property leased from PVS, plc. Poprad, on its own prop-erty and on the property operated on

the basis of contracts with towns and villages.In order to ensure continuous supplies of drinking water for the inhabitants, collection and disposal of sewage from towns and villages and treatment of wastewater, we focused mainly on re-

moval of breaks on water mains and in the sewer system, repairs to techno-logical equipment and electric facili-ties, treatment and disinfection of wa-ter storage tank facilities, exchanging water meters, painting work as well as fence repair.

repairs of property, plant and equipment

by company staff


The company bought 2 special CAS vehicles for sewerage network, 8 personal vehicles, 2 inspection cameras for monitoring pipelines,

2 hydropower Beaver, 1 geodetic device, 10 GPS monitoring devices, 1 plotter, 2 Dell servers, economics software Herp Opex, Herp Capex.

repairs of property, plant and equipment

by external staff

HEREWESPECIFYPLANNEDREPAIRSREALIZED: replacement of 50 surface hydrants, 56 of line valves,

repair of 168 manhole covers, Gerlachov Old water storage tank – plaster and fence repair, pumping station Žehra – plaster repair, water treatment plant Helcmanovce – repair of sanitary rooms and the control centre, operations building Spišské Bystré – plaster and fence repair, water treatment plant Jakubany – roof cover repair of the sedimentation tank, Spišské Bystré water storage tank Palesok – plaster repair, Gelnica water storage tank Uhliarska- building repair, replacement of 3 fibreglass laminate kiosks, stations of cathodic protection

in Huncovce, Poprad - Kvetnica, Poprad - Stráže.

829,804 € 144,963 € 21,286 €

TOTAL

996,053 €

PropertyleasedfromPVS,plc.Poprad

OwnedbyPVPS,plc.Poprad

Operatedonthebasisofcontracts

withtownsandvillages

investment purchase

COSTSOFREPAIRSOFPROPERTY,PLANTANDEQUIPMENTREALISED:

PURCHASEOFTANGIBLEINVESTMENTASSETSAMOUNTEDTO674,061€.

In order to ensure continuous sup-plies of drinking water for the in-habitants, collection and disposal of sewage from towns and villages and treatment of wastewater, we focused mainly on removal of breaks on water mains and in the sewer system, re-pairs to technological equipment and electric facilities, treatment and disin-fection of water storage tank facilities, replacement of water meters, painting work as well as fence repair.


financial part

The net profit of the company

for the past year was 911,108 €

and the company’s profit/loss after tax

693,631€.


financial part

In 2017 the net turnover of the com-pany reached 23,904,644 €. Out of this, water rates accounted for 11,595,296 €, sewer and roof drain rates for 11,788,342 € and other rev-enues for 521,006 €. Revenues that the accounting unit reached from the sale of excess property do not belong here. The net profit of the company for the past year was 911,108 € and the company´s profit / loss after tax 693,631 €.The company has leased the infra-structural assets (operative leasing) totalling to the sum at the value of ac-quisition of 195,890,585 €. The term of lease is set for a definite period of time, for 30 years beginning from 24th August 2006.In compliance with the concluded Lease and Operating Agreement the company has leased the infrastruc-tural assets for the project “Comple-tion of the sewer network and WWTP in the agglomeration Hôrka and Švábovce totalling to the sum at the value of the acquisition 6,897,176 €, for the project WWTP Kežmarok to the sum of 15,233,302 € and for WWTP Spišská Nová Ves to the sum of 19,255,533 €. The term of lease is set for 10 years from the date the agree-ment enters into force.The lease for the given assets amounts to 6,525,031 €. Furthermore,

the company has also properties from municipalities and third parties in use that are operated by the company on the basis of operating agreements and outsourcing agreements.With the regard to the fact that Veo-lia is a consolidated company, it was granted a long-term loan amounting to 1,000,000 € with a payback period in December 2019. In 2017 the com-pany drew a short-term loan amount-ing to 1,490,000 €.Financial statement was drawn up under the assumption that the com-pany will continuously carry on with its activities (going concern). Account-ing methods and general accounting principles were consistently applied by the accounting unit. The results of the company are detailed in the ac-counting reports annexed. After 31 December 2017 no impor-tant circumstances occurred that might have an impact on the finan-cial, economic and capital situation of the water company Podtatranská vodárenská prevádzková spoločnosť, plc. The company did not carry out any activities in the field of research and development. During the year the company did not acquire its own shares, interim certificates, business shares and shares, interim certificates and business shares of the mother ac-counting unit.

a commentary on the economic results of the company


Line No.

Desig-nation ASSETS

Current accounting period Preceding accounting

periodBrutto Correction Netto

1 TOTAL ASSETS line 02 + line 33 + line 74 23,273,390 15,425,118 7,848,272 6,848,678

2 A. Non-current assets l. 03 + l. 11 + l. 21 17,073,490 14,689,018 2,384,472 2,165,949

3 A.I. Non-current intangible assets - total (l. 04 to 10) 11,646,855 11,386,950 259,905 90,078

5 2. Software (013) - /073,091A/ 86,765 44,801 41,964 13,065

7 4. Goodwill (015) - /075,091A/ 11,342,149 11,342,149 0 0

9 6. Non-current intangible assets acquired (041) - /093/ 217,941 0 217,941 77,013

11 A.II. Property, plant and equipment - total (l. 12 to 20) 5,425,899 3,302,068 2,123,831 2,074,052

14 3.Separate movable assets and sets of movables (022) - /082,092A/

5,368,233 3,253,219 2,115,014 2,058,546

17 6.Other property, plant and equipment (029, 02X, 032) - /089, 08X, 092A/

57,666 48,849 8,817 15,506

21 A.III. Non-current financial assets - total (l. 22 to 32) 736 0 736 1,819

22 A.III.1.Shares and ownership interests in affiliated accoun-ting entities (061A, 062A, 063A) - /096A/

736 0 736 1,819

33 B. Current assets l.34 + l. 41 + l. 53 + l. 66 + l. 71 6,180,592 736,100 5,444,492 4,657,828

34 B.I. Inventory - total (l. 35 to 40) 256,005 2,455 253,550 283,156

35 B.I.1. Raw material (112, 119, 11X)-/191, 19X/ 256,005 2,455 253,550 2,831,565

41 B.II. Non-current receivables - total (l. 42 + l. 46 to 52) 339,989 0 339,989 310,883

52 8. Deferred tax asset (481A) 339,989 0 339,989 310,883

53 B.III. Current receivables - total (line 54 + lines 58 to 65) 4,563,760 733,645 3,830,115 3,350,959

54 B.III.1. Trade receivables - total (lines55 to 57) 4,287,048 733,645 3,553,403 3,263,892

55 1.a.Trade receivables from affiliated accounting entities (311A, 312A, 313A, 314A, 315A, 31XA) - /391A/

16,663 0 16,663 148,056

57 1.c.Other trade receivables (311A, 312A, 313A, 314A, 315A, 31XA) - /391A/

4,270,385 733,645 3,536,740 3,115,836

60 4.Other receivables from affiliated accounting entities (351A) - /391A/

301 0 301 301

63 7.Tax assets and subsidies (341, 342, 343, 345, 346, 347) - /391A/

200,280 0 200,280 344

65 9.Other receivables (335A, 33XA, 371A, 374A, 375A, 378A) - /391A/

76,131 0 76,131 86,422

71 B.V. Financial accounts (l. 72 and l. 73) 1,020,838 0 1,020,838 712,830

72 B.V.1. Cash (211, 213, 21X) 3,937 0 3,937 3,467

73 2. Bank accounts (221A, 22X, +/- 261) 1,016,901 0 1,016,901 709,363

74 C. Accruals / Defferals - total (l. 75 to 78) 19,308 0 19,308 24,901

75 C.1. Prepaid expenses - long-term (381A, 382A) 809 0 809 5,193

76 2. Prepaid expenses - short-term (381A,382A) 18,499 0 18,499 19,709

FINANCIAL STATEMENTS OF ENTREPRENEURS IN DOUBLE

BALANCE SHEET as of 31 december 2017 (in €)


Line No.

Desig-nation LIABILITIES AND EQUITY Current accounting

period grossPreceding

accounting period

79 Total equity and liabilities line 80 + line 101 + line 141 7,848,272 6,848,678

80 A. Equity l. 81 + l. 85 + l. 86 + 87 + 90 + 93 + 97 + 100 1,533,296 1,784,711

81 A.I. Share capital - total (l. 82 to 84) 33,200 33,200

82 A.I.1. Share capital (411 or +/-491) 33,200 33,200

86 A.III. Other capital funds (413) 821,188 821,188

87 A.IV. Legal reserve funds line 88 + line 89 6,640 6,640

88 A.IV.1. Legal reserve fund and non-distributable fund (417A, 418, 421A,422) 6,640 6,640

93 A.VI. Differences from revaluation - total (lines 94 to 96) -21,363 -20,280

94 A.VI.1. Differences from revaluation of assets and liabilities (+/- 414) -21,363 -20,280

100 A.VIII.Net profit/loss for the accounting period after tax /+-/ l. 01 - (l. 81 + l. 85 + l. 86 + l. 87 + l. 90 + l. 93 + l. 97 + l. 101 + l. 141)

693,631 943,963

101 B. Liabilities l. 102 + l. 118 + l. 121 + l. 122 + l. 136 + l. 139 + l. 140 6,313,795 5,062,838

102 B.I. Non-current liabilities - total (l. 103 + l. 107 to 117) 1,175,169 1,163,107

108 Other liabilities to affiliated accounting entities (471A, 47XA) 1,000,000 1,000,000

114 9. Liabilities ralated to social fund (472) 6,117 9,079

117 12. Deferred tax liability (481A) 169,052 154,028

122 B.IV. Current liabilities - total (l. 123 + l. 127 to 135) 4,533,755 3,057,343

123 B.IV.1. Trade liabilities - total (l. 124 to 126) 2,079,734 1,506,709

124 1.a.Trade liabilities to affiliated accounting entities (321A, 322A, 324A, 325A, 326A, 32XA, 475A, 476A, 478A, 47XA)

586,273 219,070

126 1.c.Other trade liabilities (321A, 322A, 324A, 325A, 326A, 32XA, 475A, 476A, 478A, 47XA)

1,493,461 1,287,639

128 4.Other liabilities under share participation, other than liabilities to related entities (361A, 36XA, 471A, 47XA)

1,494,168 704,062

131 6. Liabilities to employees (331, 333, 33X, 479A) 476,984 387,716

132 7. Liabilities related to social security (336A) 342,480 282,499

133 8. Tax liabilities and subsidies (341, 342, 343, 345, 346, 347, 34X) 126,439 160,612

135 10. Other liabilities (372A, 379A, 474A, 475A, 479A, 47XA) 13,950 15,745

136 B.V. Short-term provisions l. 137 + l. 138 604,871 842,388

137 B.V.1. Legal provisions (323A, 451A) 151,105 134,694

138 2. Other provisions (323A, 32X, 459A, 45XA) 453,766 707,694

141 C. Accruals/defferals - total (l. 142 to 145) 1,181 1,129

143 2. Accrued expenses - short-term (383A) 1,181 1,129

ENTRY BOOKKEEPING AS OF 31 DECEMBER 2017


Line No.

Desig-nation Text Period

monitoredPrevious

period

1 * Net turnover (part of Account Class 6 according to the Act) 23,904,644 23,831,756

2 ** Operating income - total (lines03 - 09) 24,024,675 23,922,895

5 III. Revenue from the sale of services (602,606) 23,904,644 23,831,756

7 V. Own group capitalized (accounting group 62) 47,095 38,799

8 VI. Revenue from the sale of non-current intangible assets, property, plant and equipment, and raw materials (641,642)

12,427 3,317

9 IV. Other operating income (644,645,646,648,655,657) 60,509 49,023

10 ** Operating expenses - total line 11 + line 12 + line 13 + line 14 + line 15 + line 20 + line 21 + line 24 + line 25 + line 26

23,104,439 22,660,324

12 B. Consumed raw materials, energy consumption, and consumption of other non-inventory supplies (501,502,503)

4,252,153 4,325,624

14 D. Services (account group 51) 9,969,366 9,568,692

15 E. Personnel expenses - total (l. 16 to 19) 8,204,496 7,934,697

16 E.1. Wages and salaries (521, 522) 5,617,969 5,458,093

17 2. Remuneration of board members of company or cooperative (523) 44,448 42,638

18 3. Social security expenses (524, 525, 526) 2,125,132 2,044,148

19 4. Social expenses (527, 528) 416,947 389,818

20 F. Taxes and fees (account group 53) 117,520 186,511

21 G. Amortization and value adjustment to non-current intangible assets and depreciation and value adjustments to property, plant and equipment (line 22 + l. 23)

416,495 421,929

22 G.1. Amortization of non-current intangible assets and depreciation of property, plant and equipment (551) (551)

416,495 421,929

24 H. Carrying value of non-current assets sold and raw materials sold (541,542) 120 0

25 I. Value adjustments to receivables (+/-) (547) 31,140 67,109

26 J. Other operating expenses (543,544,545,546,548,549,555,557) 113,149 155,762

27 *** Profit/loss from operations (+/-) (line 02 - line 10) 920,236 1,262,571

28 * Added value (l. 03+l. 04 + l. 05 + l. 06 + l. 07)-(l. 11+l. 12+l. 13+ l. 14) 9,730,220 9,976,239

29 ** Income from financial activities - total (l. 30+l. 31+l. 35+l. 39+ l. 42+l. 43+l. 44) 0 52

39 XI. Interest income (l. 40 + l. 41) 0 46

41 2. Other interest income (662A) 0 46

42 XII. Exchange rate gains (663) 0 6

45 ** Expenses related to financial activities - total l. 46+ l. 47+ l. 48+l. 49+ l. 52+ l. 53+ l. 54) 34,447 30,741

49 N. Interest expense (l. 50 + l. 51) 25,319 25,139

50 N.1. Interest expenses related to affiliated accounting entities (562A) 25,319 25,139

52 O. Exchange rate losses (563) 3,090 491

54 Q. Other expenses related to financial activities (568,569) 6,038 5,111

55 *** Profit/Loss from financial activities (+/-) (r.29-r.45) -34,447 -30,689

56 **** Profit/Loss for the accounting period before tax (+/-) (l. 27+l. 55) 885,789 1,231,882

57 R. Income tax (l. 58 + l. 59) 192,158 287,919

58 R.1. Income tax - current (591, 595) 206,240 427,512

59 2. Income tax - deferred (+/-) (592) -14,082 -139,593

61 **** Profit/Loss for the accounting period after tax (+/-) (l. 56-l. 57-l. 60) 693,631 943,963

Profit and Loss Statement as of 31 december 2017


2017 (€) 2016 (€)Cash flow from operating activitiesOperating Cash Flow 1,373,238 2 487,576Interests Paid -25,160 -21,706Interests Received 0 46Income Tax Paid -449,502 -512,848Dividends Paid -925,084 -1,014,088Cash Flow prior to Items of Extraordinary Extent or Occurrence -26,508 -938,980Revenues from Items of Extraordinary Extent or Occurrence 0 0Net Cash Flow from Operating Activities -26,508 -938,980

Cash Flow from Investment ActivitiesNon-Current Assets Purchase -467,765 -597,834Non-Current Assets Sales Revenues 12,281 3,309Investment Purchasing 0 0Dividends Received 0 0Net Cash Flow from Investment Activities -455,484 -594,525

Cash Flow from Financial ActivitiesRevenues from Share Capital Increase 0 0Revenues from Loans 790,000 0Long-term liabilities Installments 0 0Received Loans Installments 0 -300,000Net Cash Flow from Financial Activities 790,000 -300,000

Net (Decrease) Increase in Cash and Cash Equivalents 308,008 44,455

Cash and Cash Equivalents at the Beginning of the Year 712,830 668,375

Cash and Cash Equivalents at the End of the Year 1,020,838 712,830

Cash flow from operating activitiesNet Profit (prior to deducing interest, tax and items of extraordinary extent and occurrence)

911,108 1,256,977

Alternations of Non-Monetary Operations:Amortization of non-current intangible assets and depreciation of property, plant and equipment 416,495 421,929Value adjustments to Accounts Receivables -3,440 -34,369Value adjustment to Inventory 0 0Value adjustment to property, plant and equipment 0 0Value adjustment to Non-Current Financial Assets 0 0Unrealized Exchange Rate Losses 0 2Unrealized Exchange Rate Gains 0 0Reserves -237,517 168,690Loss (Profit) from Non-Current Assets Sale 0 0Revenues from Non-Current Financial Assets 0 0Difference between acknowledged capital contribution value and its accounting value 0 0Other Non-Monetary Operations 0 0Profit from Operation prior to Working Capital Change 1,086,646 1,813,229

Working Capital ChangeDecrease (Increase) in Receivables from Commercial Activities and other Receivables (including Accrued Assets) -275,777 507,128

Decrease (Increase) in Inventories 29,606 -36,490Decrease (Increase) in Liabilities (including accrued Liabilities) 532,763 203,709

Cash Flow from Operation 1,373,238 2,487,576

Cash Flow Statement as of 31 december 2017


independent auditor’s

report


report by supervisory board2017

continuous quality improvement of water management services provided renovation and optimisation of operations and technological facilities of wastewater

treatment plants in cooperation with PVS, plc. improvement of services for our customers support of education and educational processes at primary and secondary schools implementation of new technologies in order to achieve permanent reduction in water loss make sure that all activities are in compliance with the requirements regarding health

and environmental protection cooperation with state organs in order to ensure that legislation is observed

Intentions for 2018


OPINION

of the SUPERVISORY BOARD of Podtatranská vodárenská prevádzková spoločnosť,plc.

on the Annual Financial Statement as of the Year 2017 and on the Corporate Annual Report as of the year 2017

The Financial Statement and the Corporate Annual Report were audited by the auditing company of KPMG Slovensko, Ltd., SKAU License No. 96.

In the report to the shareholder, the Supervisory Board, the Board of Directors of the PVPS, plc., the auditor expressed his opinion on the Financial Statement.

According to the auditor, the Financial Statement faithfully reflects the actual corporate financial situation of the company as of 31 December 2017 and its result regarding Profit and Loss for the year ending to the above mentioned date and pursuant to the Act on Accounting No. 431/2002 Coll. as amended. In their meeting on 11 June 2017, the Supervisory Board examined the Current Corporate Financial Statement pursuant to the articles § 198 of the Act 513/1991 Coll. of the Commercial Code as amended and the Article XII., Section 4 of the Book of Statutes.

Following the examination of the Financial Statement and as a follow-up to the Report of the auditor, the Supervisory Board states that the company keeps its corporate accounting in full observance and concordance with the Act on Accounting and further related regulations and rules. Examining the formal and material validity and credibility of the Current Consolidated Financial Statement as of the year 2017 proved that no shortcomings were found.

The company attained the total accounting profit of 693,631.51 € as of the year 2017.

CONCLUSION: he Supervisory Board recommends to the General Assembly of the PVPS, plc. to approve of the Annual Consolidated Financial Statement , the Corporate Annual Report as well as the proposed draft proposal for the profit distribution achieved in the year 2017.

In Poprad, 11 June 2018

Ing. Zuzana Kováčová Chairman of the Supervisory Board

of PVPS, plc.


ANNUAL REPORTPodtatranská vodárenská

prevádzková spoločnosť, a. s.

Issued by: PVPS, plc. (Poprad 2018)

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annual report - pvps, a.s

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