IN Annual report

Transcription

1 IN 2007 Annual report

2 identification data shareholders Address: SLOVENSKÉ ENERGETICKÉ STROJÁRNE a.s. Továrenská Tlmače Slovak Republic legal form: joint-stock company ident. No.: tax ident. No.: IC VAT: SK Contacts: tel. exchange: tel. marketing: fax exchange: fax marketing: Some indices for SES a.s Revenues of own products and services (thsd. Sk) Export (thsd. Sk) Share of export on revenues of sale (%) Profit for current accounting period (thsd. Sk) (7 186) Added value (thsd. Sk) Added value per employee (thsd. Sk) EBITDA(thsd. Sk) Average month salary (Sk) Turnover period of receivables (days) Turnover period of payables (days) Total indebtedness (%) Return on equity ROE (%) (1.41) Review of shareholders SES a.s., as of March 7, 2008 Shareholder Seat Country Number of shares Share of RC SEGFIELD INVESTMENT LIMITED Pallouriotissa Cyprus % Others % TOTAL %

3 ses tlmače annual report 2007 contents prologue of general manager...4 profile of company...6 history in a nutshell... 7 organisation chart and company bodies...8 crucial projects human resources financial part individual financial statement consolidated balance sheet independent auditor s report...22

4 we know the world and the world knows us. there is a reason for us to be proud.

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6 ses tlmače: annual report 2007 prologue: year 2007 successful accomplishment of our ideas Dear Shareholders, dear Business Partners, This is a report of SES a.s. economy in 2007 the year that can be marked as the year of changes in our company. An important impulse to start in-house changes was entry of the new majority shareholder Segfield Investment in autumn Then within a very short time, it was prepared a medium-term plan of the company with further exactly defined strategic direction of the company on energy market. The development of company production rate can be evaluated positively. The total products amounted more than 5 billion crowns representing an increase of 50% on previous year. The fiscal year was finished with a profit of 132 millions and with regard to the current level of secured contracts for the next period it can be supposed that the company will carry on with positive trend of profit rate development. During this year the company liquidity was substantially improved and the company is currently perceived on the market as a strong and reliable partner for our suppliers. Our company has got long-term and strong know-how in engineering and in manufacture of boiler pressure and non-pressure parts and there is available one of greatest assembly capacities in the central Europe. We are aware that without further improvement in the company, we would not be able to utilize the current growing potential on energy market and to keep our market position. Therefore in the first half of 2007 the project SES 2007 was performed in our company. Its aim was to set the optimal process structure within a relatively short time period and to establish management tools allowing the company to use efficiently the resources required for planned growth and to strengthen its competitive position on the market. Now, we can state that the project aims were successfully fulfilled and can be taken as a cornerstone for the future company strategy. Another important decision taken within the changes in the company was the project Progress 2008 started in September 2007 whose intention is to provide SW support to key processes. The end of the project has been scheduled for the end of 3rd quarter The year 2007 was a period of remarkable contract successes. SES made contracts in the amount of 12 billion crowns. The most important contracts are deliveries of classical 350 MW boilers for Colbun and Bocamina in Chile, CFB boilers for Seydisehir in Turkey and for Höchst in Germany. Our company proved its strong market position in the segment of 6

7 introduction our vision the most important company in the central europe and european leader in fluidized bed boiler deliveries classical and fluidized bed boilers. For the market segment of heat recovery steam generators and boilers for biomass and municipal waste incinerating plants it is necessary to define a business model and to ensure resources (manufacturing and engineering) in the next period. In SES there is dynamical development and to ensure further growth it is necessary to provide new resources. Outsourcing is one of the ways that we have used for most manufacture of non-pressure parts. Now we are also looking for partners to provide manufacture of boiler pressure parts. Another way to increase resources is maximal utilization of current in-house manufacturing technological capacities and investment in bottlenecks in manufacture. To provide human resources we have started recruitment activities supported by new regulation of remuneration and by actions in the field of employees education. We believe the resumption of manufacture in Želiezovce was a good step. In 2008 we intend to employ at least 150 workers there. Our company supposes to keep up the current dynamics in production increase and positive development in its economy in For this year there is planned production amounting 7.3 billion crowns representing again an increase of 50 % on previous year or more than double increase of production comparing to Reaching this production will allow our company to improve its economy and consequently to strengthen its financial stability. The current management of our company is ready to use the current market potential to the maximal extent and we believe we will be able to fulfil the set vision of SES as. and to become the most important company in the central Europe in its line of business and European leader in CFB. Finally, we would like to thank our business partners for cooperation and confidence expressed by new contracts we made. We believe the performed restructuring activities and changes in business strategy will conduce to further development of good relations with our partners on market. Let us assure you this is the main priority of SES Tlmače management. Ing. Martin Paštika, MBA General Manager and Chairman of Board of Directors 7

8 ses tlmače: annual report 2007 Main entrance in 50-ties Fitters Construction of workshop I Construction of external wall of workshop I profile of company: : decades of experience support actual vision Slovenské energetické strojárne, joint-stock company (SES a.s.) belongs among leading suppliers of boilers for both power and combined heating and power plants, incinerating plants. It is a mechanical engineering company having its 58-year history. SES a.s. manufactures and delivers steam boilers for combustion of coal, oil, gas and biomass. These boilers comply with the most demanding requirements for environmental protection while reaching high efficiency and long-term service life. The company provides complete system of services in power engineering: development, designing, manufacture, assembly and commissioning. The company has got established the process quality management system to EN ISO 9001:2000 and the environmental management system to EN ISO 14001:2004. The company has got certificates AD 2000-Merkblatt HPO/TRD 201 and EN 729-2, DIN , DIN 15018, ASME CODE and accreditation certificate according to STN EN ISO/IEC Since August 2006 Segfield Investment belonging to the consolidated J&T Group has been the new majority shareholder of SES a.s. J&T Group is an important investor in the field of long-term investment in Czech and Slovak industrial companies energy and mechanical engineering. Our development priorities: Partnership Providing resources (human, financial, technical) Employees education Leadership in CFB Satisfaction of shareholder Globalization of activities 8

9 profile of company history in a nutshell Establishment of the enterprise called Levická kotláreň (Levice Boiler Works) Závody S.M. Kirova n.p. Levice Závody S. M. Kirova n. p. Tlmače as a branch of IBZKG Brno Slovenské energetické strojárne n. p. Tlmače integrated into ŠKODA concern Slovenské energetické strojárne, state enterprise, Tlmače Slovenské energetické strojárne, joint-stock company, Tlmače Entry of a new majority shareholder Segfield Investment (that is a part of the consolidated entity J&T FINANCE GROUP)

10 ses tlmače: annual report 2007 General Meeting SES a.s. Board of Directors Supervisory Board GM Office General Manager Sales Projects Management Engineering Manufacturing Assembly & Service Procurement & Logistic Finance & Administration Human Resources Quality Management SUBSIDIARIES OF SES a.s. COMPANIES ACTIVE IN POWER ENGINEERING BUSINESS SES INSPEKT, s.r.o. 100% SES Energoprojekt, s.r.o. 51% ENERGOPROJEKTY, a.s. 34% SES CHILE, Ltda. 99,9% SES HUNGARIA Kft. Hungary, 90% SES BOHEMIA ENGINEERING, a.s. Czech Republic, 71% SES BOHEMIA, s.r.o. Czech Republic, 100% Energetické opravny, a.s. Czech Republic, 100% SES ENERGY, a.s. 100% 10

11 organization chart and company bodies organization chart and company bodies as of may 8, 2008 BOARD OF DIRECTORS Chairman of Board of Directors Martin Paštika Vice Chairman of Board of Directors Marek Janča Member of Board of Directors Robert Bundil Member of Board of Directors Vladimír Haško SUPERVISORY BOARD Chairman of Supervisory Board Daniel Křetinský Vice Chairman of Supervisory Board Marek Spurný Member of Supervisory Board Jozef Šumeraj COMPANY MANAGEMENT General Manager Martin Paštika Commercial Director Ján Kukučka Projects Management Director Miloš Ďurovič Technical Director Marian Kotrus Manufacturing Director Ján Mintál Assembly & Service Director Vojtech Škorec Procurement & Logistic Director Inna Nebylicyna Financial Director Robert Bundil Personnel Director Jana Gajdošová Quality Management Director Roman Kotora 11

12 ses tlmače: annual report ,4 % 6,3 % 6,2 % 44,1 % ,9 % 5,8 % 4,3 % 3,7 % 3,5 % : crucial projects 2,2 % 2,2 % 3,2 % 3,2 % 9,4 % 6,3 % 6,2 % 5,9 % 5,8 % 4,3 % 3,7 % 3,5 % 3,2 % 3,2 % 2,2 % 2,2 % 44,1 % Zonguldag (Turkey), boiler house with 460 t/h CFB boiler with coal combutions boiler for 160 MWe unit Usiminas (Brazil), 2 x 140 t/h boilers with metallurgical gases combustion Malmö (Sweden), t/h grate boiler with municipal waste combustion Zvolenská teplárenská (Slovakia), 160 t/h boiler K1 and 90 t/h boiler K2 with brown coal combustion and biomass Fundermax (Austria), 55 t/h BFB boiler with wooden chips, wooden dust and old wood combustion U.S. Steel Košice (Slovakia), 2x215 t/h boilers K2, K3 Minsk (Belorussia), t/h HRSG Obrenovac (Serbia), reconstruction 920 t/h, boiler A4 Corlu (Turkey), 135 t/h boiler with natural gas combustion Repar - Petrobras (Brazil), 180 t/h boiler with natural gas, refinery gas and fuel oil combustion Tisza (Hungary), retrofit 4x670 t/h U.S. Steel Košice (Slovakia), 2x215 t/h boilers K4, K5 Others 12

13 2,0 % crucial projects 12,8 % 24,7 % 2,3 % 2,7 % 3,0 % 4,0 % ,6 % 20,1 % 9,8 % 11,0 % 24,7% 20,1% 11,0% 9,8% 7,6% 4,0% 3,0% 2,7% 2,3% 2,0% 12,8% Colbun (Chile), 1215 t/h boiler with dry-bottom furnace for 370MW unit with bituminous coal combustion Bocamina, (Chile), 1215 t/h boiler with dry-bottom furnace for 370MW unit with bituminous coal combustion Zonguldag (Turkey, boiler house with 460 t/h CFB boiler with coal combustion for 160 MWe unit Seydisehir, (Turkey), 120 t/h CFB boiler with lignite combustion U.S. Steel Košice (Slovakia,), 2x215 t/h boilers K2, K3 Sostanj (Slovenia), HRSG for 2x62 MW Malmö, (Sweden) t/h grate boiler with biomass combustion Oroszlany (Hungary), reconstruction of 230 t/h pulverized coal boiler K2 with brown coal and biomass combustion Repar - Petrobras (Brazil), 180 t/h boiler with natural gas, refinery gas and fuel oil combustion Bazenheid (Switzerland), 23 t/h waste heat boiler with biomass combustion Others 13

14 ses tlmače: annual report 2007 human resources 2 % (39) 1 % (23) 9 % (192) % (683) < EMPLOYEES BY AGE 24 % (487) EMPLOYEES BY EDUCATION Elementary education High school education High school graduates < 61 University education % (632) NUMBER OF EMPLOYEES DEVELOPMENT OF WORKERS In 2007 there were 1703 employees attending the process of education. The amount invested by the company into development of their employees in 2007: 8.91 mil. Sk For 2008 there are planned costs: mil. Sk ACTIVITIES OF TRADE UNIONS In SES a.s. Tlmače there are trade unions: Parent organization of Trade Union KOVO Parent organization of Slovak Trade Union of power engineers Trade Union RAVEM Total membership in trade unions in SES a.s. is 47 % as of December 31, 2007 Average 14

15 financial part individual financial statements ses a.s.

16 ses tlmače: annual report 2007 balance sheet as of december 31, 2007 in abbreviated scope (in thousands of slovak crowns) ASSETS Receivables for subscription Non-current assets Intangible fixed assets Tangible fixed assets Long-term financial assets Current assets Inventory Long-term accounts receivable Short-term accounts receivable Financial accounts Accruals and deferrals TOTAL ASSETS EQUITY AND LIABILITIES Equity Registered capital Capital funds Income funds Profit (loss) of previous years Profit (loss) of current period (7 186) External liabilities Reserves Long-term payables Short-term payables Bank loans Accruals and deferrals TOTAL EQUITY AND LIABILITIES

17 individual financial statement of ses a.s. remarks to the balance sheet assets of the company as of December 31, 2007 were increased by 1,831 mil. Sk and reached the amount of 4,677 mil. Sk fixed assets amounting 734 mil. Sk formed by long-term intangible, long-term fixed and long-term financial assets were increased by 3 mil. Sk. current assets consisting of inventories of receivables and financial accounts at the end of 2007 amounted 3,402 mil. Sk being an increase of 1,665 mil. Sk on previous year Development of the individual current assets items: Inventories amounted 1,321 mil. Sk i.e. an increase of 549 mil. Sk on previous year During 2007 material inventories increased by 77 mil. Sk due to greater purchase of materials for the projects Zonguldak, Hoechst and Sostanj. The unfinished manufacture amounted 754 mil. Sk and it is an increase of 384 mil. Sk on previous year The projects affecting the amount of unfinished manufacture are Malmo, Sostanj, Seydisehir. Short-term receivables amounted 1,464 mil. Sk, i.e. an increase of 679 mil. Sk on previous year. Financial accounts amounted 589 mil. Sk Accruals and deferrals amounted 540 mil. Sk i.e. a decrease of 162 mil. Sk on previous year. equity of the company as of December 31, 2007 amounted 894 mil. Sk i.e. an increase of 383 mil. Sk on previous period. The equity amount was influenced mainly by the income after taxation reaching 132 mil. Sk and by the amount of capital funds of 290 mil. Sk (thereof the most important part is revaluation of open FX transactions in the amount of 279 mil. Sk ). liabilities amounted 3,279 mil. Sk i.e. an increase of 1,507 mil. Sk. The critical items of liabilities were changed as follows: Decrease of reserves by 5 mil. Sk Long-term payables increased by 282 mil. Sk Short-term payables amounted 2,378 mil. Sk and during the year they were increased by 1,169 mil. Sk. The reason was a higher advance payment for starting projects Hoechst, Colbun, Meirama, Bocamina Bank loans amounted 338 mil. Sk and increased by 62 mil. Sk on previous year. accruals and deferrals amounted 503 mil. Sk i.e. decrease of 60 mil. Sk due to decrease of deferred income related to particular projects. 17

18 ses tlmače: annual report 2007 profit and loss account as of december 31, 2007 in abbreviated scope (in thousands of slovak crowns) Revenues from merchandise Costs of goods sold Gross margin 0 0 Production Revenues of own products and services Change in inventory of own production Capitalisation Production consumption Material and energy consumption Services Added Value Personnel expenses Taxes and fees Depreciation Other operating revenues Other operating costs Operating profit (loss) Financial revenues Financial expenses Profit (loss) from financial operations (8 857) (33 023) Income tax on ordinary income (2 164) Ordinary income (7 186) Extraordinary revenues Extraordinary expenses Income tax on extraordinary income Extraordinary income 0 0 Profit (loss) of current accounting period (7 186) 18

19 individual financial statement of ses a.s. remarks to profit and loss account The income in 2007 amounted 132 mil. Sk and after taxation it is a difference between the total earnings of 5,385 mil. Sk and total costs of 5,253 mil. Sk. From the total earnings the revenues of SES a.s. from sale of own products and services amounted 4,669 mil. Sk, thereof 3,463 mil. Sk was aimed for export and represented 74 % of total sale. Dominant business cases performed in 2007 were Zonguldak, (437 mil. Sk), Malmö (289 mil. Sk), Usiminas (294 mil. Sk), Fundermax (268 mil. Sk), Zvolen Heating Plant (274 mil. Sk), Košice K2, K3 (201 mil. Sk), Minsk (173 mil. Sk), Obrenovac (162 mil. Sk). operating profit amounted 167 mil. Sk and it was by 143 mil. Sk more than in The favourable development of economy resulted from an increase of trade margin and revenues. That fact was also a reason of increasing the added value reaching an amount of 1,003 mil. Sk representing an increase by 306 mil. Sk. Along with the added value it was also increased the labour productivity up to 515 thsd. Sk per employee, i.e. by 23 % more than in 2006 when its level reached 417 thsd. Sk. loss from financial operations amounted 9 mil. Sk and it is less by 24 mil. Sk than in 2006 and was affected by current financial expenses (interests, bank guarantees, insurance, bank fees). The negative influence was caused by exchange rate differences showed by the company in the amount of 6 mil. Sk. Loss from financial operations was compensated by hedging transactions with an impact on the economic resulted in the amount of 72 mil. Sk. profit (loss) of current accounting period amounting mil. Sk was increased by 139 mil. Sk on previous year. 19

20 ses tlmače: annual report 2007 consolidated balance sheet as of december 31, 2007 prepared based on international standards for financial reporting (in thousands of slovak crowns) ASSETS Long-term assets Goodwill Long-term intangible assets Long-term tangible assets Investment in joint-ventures and associates Non-current receivables Deferred tax assets Total long-term assets Current assets Inventories Claims against clients from construction contracts Trade receivables Other receivables Cash and cash equivalents Inventories Current financial assets Assets classified as held for sale Total current assets TOTAL ASSETS EQUITY AND LIABILITIES Capital and reserves Share capital Capital reserves Retained reserves Retained earnings (51 567) Minority interest TOTAL EQUITY Non-current liabilities Non-current liabilities Deferred tax liabilities Obligations under financial leases Bank loans Provisions Other non-current liabilities Total non-current liabilities Current liabilities Trade liabilities Other liabilities Obligations under financial leases Bank overdrafts and loan Provisions Obligation under property for sale Total current liabilities TOTAL LIABILITIES TOTAL EQUITY AND LIABILITIES

21 consolidated balance sheet consolidated income statement for the year ended on december 31, 2007 prepared based on international standards for financial reporting (in thousands of slovak crowns) CONTINUING OPERATIONS Revenues from main activity Revenues from sale of services (rent, energies, other services) Other revenues Raw materials and consumables used ( ) ( ) Depreciation and amortization expense (81 328) (76 485) Employee benefits expense ( ) ( ) Creation of provisions ( ) ( ) Other operating expenses ( ) ( ) ( ) Financial income (costs) net (7 501) Profit from continuing operations before tax ( ) Tax of profit from continuing operations ( ) Profit from continuing operations after tax ( ) COMPLETED OPERATIONS Profit from completed operations before tax Tax of profit from completed operations Profit from completed operations after tax 0 0 Profit for the year ( ) attributable to: - minority interest (2 024) (5 163) - equity holder of the parent ( ) Earnings per share Basic from continuing operations 330 (112) Basic from finished operations 0 Total basic earnings per share 330 (112) Diluted earnings per share from continuing operations Diluted earnings per share from finished operations Total diluting earnings per share

22 ses tlmače: annual report 2007 consolidated statement of changes in own equity for the year ended on december 31, 2007 prepared based on international standards for financial reporting (in thousands of slovak crowns) Equity Capital funds Profit funds Undivided profits Owners share in parent company Minority interest Total equity capital in thsd.sk in thsd.sk in thsd.sk in thsd.sk in thsd.sk in thsd.sk Balance as of January 1, Profit ( ) ( ) ( ) Distribution of profit (4 778) (3 592) (3 592) Difference in valuation (1 001) (1 001) (1 001) Modification of differences in valuation from stocks revaluation Exchange rate difference from calculations of foreing establishments (32 686) (32 686) (32 686) Sale of own shares (12 361) Balance as of December 31, (51 567) Profit Dividends paid 0 0 Allocation to reserve fund 0 0 Allocation to other funds 0 0 Modification of differences in valuation from stocks revaluation (933) (933) (933) Correction of past periods (123) Balance as of December 31,

23 consolidated balance sheet basis for financial statements The enclosed consolidated financial statement of the company was prepared in accordance with the International financial reporting standards for financial statements and all the applicable IFRS accepted in the European Union issued by the International accounting standard board (IASB). The consolidated financial statements were based on the principle of historical costs except for modifications due to revaluation of financial assets by the method of equity. Principles of consolidation These are consolidated financial statements for the Group prepared in accordance with IFRS. The company enters into J&T Finance Group consolidation and the subsidiaries are subject to consolidation within the group. The Group consists of the following companies: Subsidiaries: SES INSPEKT, s.r.o. SES REAL, s.r.o. SES KREDIT s.r.o. SES ENERGY, a.s. SES BOHEMIA, s.r.o. SES BOHEMIA ENGINEERING, a.s. SES HUNGARIA Kft. SES Energoprojekt, s.r.o. Associated company: ENERGOPROJEKTY, a.s. Subsidiaries The consolidated financial statements include subsidiaries, i.e. subjects where the company has got absolute majority of votes or is otherwise authorized to control them. The subsidiaries have been included into consolidation since the date when SES Tlmače gained control over them till the date they will lose the control. Associated companies Associated companies are those where a company is of essential influence on financial and operating rules. Consolidated financial statements include the group share in total income and losses of the associated companies in the way of equity method since the date when the essential influence started till the date when it will be finished. If the company share in a loss of joint-venture or associated company is equal or exceeds its capital participation in it, the company does not show a loss unless any liabilities or financial expenditures for this joint-venture or associated company incurred. 23

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26 SLOVENSKÉ ENERGETICKÉ STROJÁRNE a.s. Továrenská Tlmače Slovak Republic tel.: fax: