IN 2007 Annual report
identification data shareholders Address: SLOVENSKÉ ENERGETICKÉ STROJÁRNE a.s. Továrenská 210 935 28 Tlmače Slovak Republic legal form: joint-stock company ident. No.: 314 116 90 tax ident. No.: 202 040 3869 IC VAT: SK202 040 3869 Contacts: tel. exchange: +421 36 638 1111 tel. marketing: +421 36 638 2493 fax exchange: +421 36 634 1941 fax marketing: +421 36 638 2494 e-mail: marketing@ses.sk www.ses.sk Some indices for SES a.s. 2003 2004 2005 2006 2007 Revenues of own products and services (thsd. Sk) 5 210 235 4 266 425 3 583 615 3 089 024 4 668 989 Export (thsd. Sk) 5 027 099 3 835 167 2 915 002 1 869 717 3 462 671 Share of export on revenues of sale (%) 96 90 81 61 74 Profit for current accounting period (thsd. Sk) 7 028 168 019 7 485 (7 186) 131 815 Added value (thsd. Sk) 911 826 1 093 431 861 164 697 434 1 002 816 Added value per employee (thsd. Sk) 469 623 500 417 515 EBITDA(thsd. Sk) 191 224 421 696 151 034 89 143 240 981 Average month salary (Sk) 20 789 22 018 20 913 21 875 24 629 Turnover period of receivables (days) 67 60 58 86 80 Turnover period of payables (days) 112 80 106 170 209 Total indebtedness (%) 58.96 52.25 53.76 62.27 70.12 Return on equity ROE (%) 1.49 27.44 1.46 (1.41) 14.74 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 1 198 747 76.58% Others 366 598 23.42% TOTAL 1 565 345 100%
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... 10 human resources... 12 financial part... 13 - individual financial statement..... 14 - consolidated balance sheet... 18 independent auditor s report...22
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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 2006. 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 2008. 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
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 2008. 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 2006. 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
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: 1950 2008: 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 18 800-7, DIN 15018, ASME CODE and accreditation certificate according to STN EN ISO/IEC 17 025. 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
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) 1. 1. 1950 1951-1958 1958-1969 1969-1990 1990-1992 1. 5. 1992 30. 8. 2006 9
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
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
ses tlmače: annual report 2007 9,4 % 6,3 % 6,2 % 44,1 % 2007 5,9 % 5,8 % 4,3 % 3,7 % 3,5 % 2007-2008: 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), 112.5 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), 212.5 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
2,0 % crucial projects 12,8 % 24,7 % 2,3 % 2,7 % 3,0 % 4,0 % 2008 7,6 % 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) 112.5 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
ses tlmače: annual report 2007 human resources 2 % (39) 1 % (23) 9 % (192) 331 59 33 % (683) <20 21-30 31-40 EMPLOYEES BY AGE 24 % (487) EMPLOYEES BY EDUCATION Elementary education 845 41-50 High school education 51-60 High school graduates < 61 University education 821 31 % (632) NUMBER OF EMPLOYEES 2500 2003 2004 2005 2006 2007 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: 14.55 mil. Sk 2000 1500 1000 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 %. 500 0 as of December 31, 2007 Average 14
financial part individual financial statements ses a.s.
ses tlmače: annual report 2007 balance sheet as of december 31, 2007 in abbreviated scope (in thousands of slovak crowns) 2 007 2006 ASSETS Receivables for subscription Non-current assets 733 962 730 845 Intangible fixed assets 24 639 14 589 Tangible fixed assets 596 908 606 793 Long-term financial assets 112 415 109 463 Current assets 3 402 387 1 736 727 Inventory 1 321 366 771 505 Long-term accounts receivable 27 856 17 002 Short-term accounts receivable 1 463 960 784 599 Financial accounts 589 205 163 621 Accruals and deferrals 540 700 378 023 TOTAL ASSETS 4 677 049 2 845 595 EQUITY AND LIABILITIES Equity 894 098 510 838 Registered capital 313 069 313 069 Capital funds 290 044 25 868 Income funds 47 226 46 795 Profit (loss) of previous years 111 944 132 292 Profit (loss) of current period 131 815 (7 186) External liabilities 3 279 760 1 772 031 Reserves 256 559 262 379 Long-term payables 305 931 23 645 Short-term payables 2 378 552 1 209 688 Bank loans 338 718 276 319 Accruals and deferrals 503 191 562 726 TOTAL EQUITY AND LIABILITIES 4 677 049 2 845 595 16
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 2006. Development of the individual current assets items: Inventories amounted 1,321 mil. Sk i.e. an increase of 549 mil. Sk on previous year 2006. 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 2006. 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
ses tlmače: annual report 2007 profit and loss account as of december 31, 2007 in abbreviated scope (in thousands of slovak crowns) 2007 2006 Revenues from merchandise Costs of goods sold Gross margin 0 0 Production 5 020 228 3 097 377 Revenues of own products and services 4 668 989 3 089 024 Change in inventory of own production 350 009 6 947 Capitalisation 1 230 1 406 Production consumption 4 017 412 2 399 943 Material and energy consumption 2 226 386 1 236 509 Services 1 791 026 1 163 434 Added Value 1 002 816 697 434 Personnel expenses 838 384 616 636 Taxes and fees 15 474 11 266 Depreciation 74 233 65 470 Other operating revenues 151 304 657 697 Other operating costs 59 281 638 086 Operating profit (loss) 166 748 23 673 Financial revenues 213 804 247 444 Financial expenses 222 661 280 467 Profit (loss) from financial operations (8 857) (33 023) Income tax on ordinary income 26 076 (2 164) Ordinary income 131 815 (7 186) Extraordinary revenues Extraordinary expenses Income tax on extraordinary income Extraordinary income 0 0 Profit (loss) of current accounting period 131 815 (7 186) 18
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 2006. 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 131.8 mil. Sk was increased by 139 mil. Sk on previous year. 19
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) 2007 2006 ASSETS Long-term assets Goodwill Long-term intangible assets 13 057 6 260 Long-term tangible assets 683 370 696 349 Investment in joint-ventures and associates 9 550 15 135 Non-current receivables 421 634 311 110 Deferred tax assets 29 889 63 555 Total long-term assets 1 157 500 1 092 409 Current assets Inventories 487 612 454 891 Claims against clients from construction contracts 730 423 193 474 Trade receivables 1 163 447 700 951 Other receivables 384 390 541 585 Cash and cash equivalents 39 318 Inventories 667 137 191 836 Current financial assets 2 961 2 198 Assets classified as held for sale 31 011 Total current assets 3 506 299 2 084 935 TOTAL ASSETS 4 663 799 3 177 344 EQUITY AND LIABILITIES Capital and reserves Share capital 313 069 313 069 Capital reserves 4 245 5 178 Retained reserves 47 975 48 098 Retained earnings 466 586 (51 567) Minority interest 5 360 3 336 TOTAL EQUITY 837 235 318 114 Non-current liabilities Non-current liabilities 284 021 17 979 Deferred tax liabilities 74 276 21 112 Obligations under financial leases 4 119 6 621 Bank loans 263 447 131 623 Provisions 41 143 41 551 Other non-current liabilities 6 721 Total non-current liabilities 667 006 225 607 Current liabilities Trade liabilities 2 322 526 1 256 048 Other liabilities 119 062 105 426 Obligations under financial leases 3 258 4 113 Bank overdrafts and loan 131 632 846 670 Provisions 464 759 237 792 Obligation under property for sale 27 563 Total current liabilities 3 159 558 2 633 623 TOTAL LIABILITIES 3 826 564 2 859 230 TOTAL EQUITY AND LIABILITIES 4 663 799 3 177 344 20
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) 2007 2006 CONTINUING OPERATIONS Revenues from main activity 4 972 647 3 249 845 Revenues from sale of services (rent, energies, other services) 59 180 43 465 Other revenues 106 451 1 080 240 5 138 278 4 373 550 Raw materials and consumables used (3 647 473) (2 324 204) Depreciation and amortization expense (81 328) (76 485) Employee benefits expense (867 962) (754 737) Creation of provisions (446 686) (869 911) Other operating expenses 293 790 (557 995) (4 749 659) (4 583 332) Financial income (costs) net 250 890 (7 501) Profit from continuing operations before tax 639 509 (217 283) Tax of profit from continuing operations (123 712) 41 268 Profit from continuing operations after tax 515 797 (176 015) 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 515 797 (176 015) attributable to: - minority interest (2 024) (5 163) - equity holder of the parent 513 773 (181 178) 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 0 0 21
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, 2006 300 708 4 915 59 273 149 551 514 447 3 336 517 783 Profit (176 015) (176 015) (176 015) Distribution of profit 1 186 (4 778) (3 592) (3 592) Difference in valuation (1 001) (1 001) (1 001) Modification of differences in valuation from stocks revaluation 1 264 1 264 1 264 Exchange rate difference from calculations of foreing establishments (32 686) (32 686) (32 686) Sale of own shares 12 361 (12 361) 12 361 12 361 12 361 Balance as of December 31, 2006 313 069 5 178 48 098 (51 567) 314 778 3 336 318 114 Profit 513 773 513 773 2 024 515 797 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) 4 380 4 257 4 257 Balance as of December 31, 2007 313 069 4 245 47 975 466 586 831 875 5 360 837 235 22
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
SLOVENSKÉ ENERGETICKÉ STROJÁRNE a.s. Továrenská 210 935 28 Tlmače Slovak Republic tel.: +421 36 638 2493 fax: +421 36 638 2494 e-mail: marketing@ses.sk www.ses.sk