Annual report - HSE
Annual report - HSE
Annual report - HSE
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
2.11 Business performance analysis<br />
In 2012, the <strong>HSE</strong> Group realised net sales revenue in the amount of EUR 1,807,655,487<br />
and exceeded the revenue realised in the same period of the previous year by 36% due to<br />
larger sales quantities of controlling companies, particularly in the foreign market.<br />
The realised operating profit or loss of the Group in 2012 amounts to EUR 113,297,265 and<br />
exceeds the profit or loss from 2011 by 18%. In 2012, the <strong>HSE</strong> Group created a net profit in<br />
the amount of EUR 85,980,549, which is 23% more than in the previous year. The net profit<br />
increase was mostly a result of higher other operating revenue (on the basis of provision<br />
reversals, drawing of deferred revenue and winning of the case TDR-Metalurgija at the<br />
Supreme Court), as well as of lower income tax due to changed tax legislation.<br />
Assets of the <strong>HSE</strong> Group as at 31 December 2012 amount to EUR 2,595,852,738 and<br />
increased by 14% compared to the end of 2011, particularly due to larger investments of<br />
the Group.<br />
As at 31 December 2012, the <strong>HSE</strong> Group equity amounted to EUR 1,473,462,757, which is<br />
5% more than at the end of 2011, mostly because of the net profit in 2012.<br />
In the discussed period, the <strong>HSE</strong> Group companies produced 7,839 GWh. Production<br />
increased by 3%, mostly due to larger production of HPPs (better hydrologic conditions in<br />
the second half of the year) and the trial run of HPP Krško.<br />
In 2012, the Group realised positive cash flow from operating and financing activities,<br />
which is of key importance; however, a negative cash flow arose from financing of large<br />
<strong>HSE</strong> Group’s investments, particularly the investment in replacement Unit 6 at TEŠ. As at 31<br />
December 2012, cash was by EUR 60 million lower, compared with the end of 2011. Due to<br />
non-realised drawing of long-term loans from EIB and EBRD, the Group carried out bridge<br />
financing of Unit 6 through short-term borrowing from banks and own funds.<br />
Structure of the statement of financial position<br />
of the <strong>HSE</strong> Group and the controlling company<br />
as at 31 December 2012<br />
<strong>HSE</strong> GROUP<br />
CONTROLLING COMPANY<br />
assets<br />
liabilities<br />
12% 88% assets 34%<br />
66%<br />
26% 74% liabilities 29%<br />
71%<br />
Short-term Long-term Short-term Long-term<br />
Statement of financial position structure<br />
On the basis of the statement of financial position of the <strong>HSE</strong> Group, it is evident that as<br />
at 31 December 2012 the <strong>HSE</strong> Group provides short-term financing sources for a part of<br />
long-term assets. The reason for this is delayed drawing of the EIB and EBRD long-term<br />
loans for replacement Unit 6 in 2012 that made the Group use bridge loans from banks<br />
and own resources.<br />
Capital adequacy<br />
Ensuring capital adequacy is one the most important responsibilities of <strong>HSE</strong> Group<br />
managers. As at 31 December 2012, the Group recorded insufficient long-term resources<br />
for financing long-term assets, due to short-term bridge financing of the TEŠ Unit 6. After<br />
the drawing of the EIB and EBRD loans began in March 2013, the Group capital adequacy<br />
normalised, and it has been estimated that the Group possesses adequate resources in<br />
relation to maturity of assets. Considering the debt and predictions regarding events on<br />
electricity markets, ensuring of capital adequacy remains one of key duties of the <strong>HSE</strong><br />
Group’s managements.<br />
<strong>Annual</strong> Report <strong>HSE</strong> 2012<br />
2 Business Report<br />
69