ANNUAL REPORT - Elektro energija · presentation of the elektro energija Group 13 eleKtRo eneRGIJA...

2013

ANNUAL REPORT

Reliably Yours

Energy Retail Company, Consulting and Services Provider, Slovenska cesta 58, 1000 Ljubljana, Slovenia

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2013

ANNUAL REPORT

Reliably Yours

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Contents

1. The management’s address 72. The management’s statement 93. Presentation of the Elektro energija Group 133.1. Mission, values and strategic objectives of the Elektro energija Group 133.2. General terms and conditions 133.2.1. Energy balance for the year 2013 143.2.2. Retail trade 153.2.3. Wholesale trade 163.3. Ownership and organisation of Elektro energija 183.3.1. Company’s ID 193.3.1.1. Company details of subsidiaries 194. Business operations of Elektro energija 254.1. Significant events in the field of retail trade 254.2. Significant events in the field of wholesale trade 284.3. Business in numbers 304.4. Profit or loss 314.5. Asset and Financial situation 324.6. Information about the business operations of subsidiaries 345. Risk management 395.1. Market risks 395.2. Business risks 405.3. Credit risks 415.4. Operational risks 426. Sustainability report 446.1. Quality systems 446.2. Quality management system ISO 9001 446.3. Information security management system ISO 27001 447. Corporate social responsibility 497.1. Concern for employees 497.2. Communication with the public in 2013 517.3. Sponsorships and donations 528. Events after the end of the calculating period 53Financial Statements and Independent Auditor’s Report 57Balance sheet 57Comprehensive income statement 58Cash flow statement 59Statement of changes in equity 60Notes to financial statements 61

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the management’s address

1. The management’s address

Dear shareholders, business partners and collegues,

In 2013, we successfully achieved the set business objectives despite the increasingly difficult economic conditions. The fiscal year was marked with major business and organisational challenges. We successfully expanded our wholesale trading to new markets, we entered the natural gas market, we strengthened the company’s organisation, and we optimised the processes and improved risk management. In December 2013, Elektro energija marked its second year of independent business operation. We can look back at the achievements of the first two years with pride. As a young company, Elektro energija is successfully growing into an established international trader of electricity and has solid roots in the local Slovenian market with 120 years of experience in the reliable supply of energy products.

The circumstances in the financial markets in 2013 were strongly marked by the economic crisis. We successfully dealt with the illiquidity of business customers of electricity, bankruptcies and compulsory compositions and with the extremely low stock-exchange prices of electricity. The electricity and natural gas market in Slovenia has become extremely competitive in the course of this year. We faced intense price competition which is also reflected in our worse operational result.

In 2013, Elektro energija created EUR 443,762 million of total revenue and created a net income statement of the accounting period in the amount of EUR 1,550 million. Compared to 2012, the company has created about EUR 43,186 thousand less revenue and about EUR 1,923 thousand less net profit. The main reason for the lower revenue was lower electricity prices in the wholesale markets and the lower profitability in the single segments of final consumption.

In Slovenia we sold 2.5TWh of electricity, from which we retained a combined market share of 22%. At the end of the year we supplied 239,100 household customers and 16,200 business customers. By increasing the quality of our services, extending the operation, staff reinforcement at the call centre, launching products with a guaranteed price of electricity for a definite period and reforming the online store we managed to significantly restrain the outflow of household customers and to retain the largest market share in this segment. We approached the acquisition of new business partners more actively. We offered very competitive conditions on the market and energy consultancy throughout the entire year; we prepared an invitation to tender for efficient energy use and designed an advanced service of consumption adjustment. Our efforts where paid off and we entered the year 2014 with a higher number of business customers.

Despite the increasingly difficult economic conditions, we successfully achieved our set business objectives. In the autumn, we entered into the natural gas market in Slovenia and at the end of the year with the sales of 3.15Sm3 we came close to a 1% market share.

Over the broader region, we traded in the range of 5.5TWh of electricity which represents a 6 % range increase in comparison to the year 2012. The transition of the wholesale trade operation to

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the management’s address the management’s statement

the new ETRM system was successfully implemented. We were present at three power exchanges and on wholesale markets in eight countries within the broader region from Germany to Serbia. The business results, especially in trading, were additionally affected by the weather conditions from good hydrology in the spring to the dry period in the autumn. We founded subsidiaries in Bosnia and Herzegovina, Serbia and Croatia and set up the entire necessary infrastructure for the purpose of trading in electricity.

We optimised and improved the risk management and set up the foundations for a process-oriented organisation of the company. The latter is a condition for adapting to a more efficient company organisation, to set up an even more objective-oriented and structured work and more efficient management of business processes. The activities in this field shall also be intensely carried out in the year 2014.

We are aware that the basis of all of our achievements are motivated and professional employees at Elektro energija who are able to react quickly to changes in the environment based on clear strategies. Since its incorporation, education has an important role in the company. We shall carefully watch over the professional competence of employees in the future as well. We are guided by the values of establishing and maintaining long-term partnerships with our partners, the concern for the overall development of employees and responsible business operations. We shall continue to meet the set objectives and commitments to our customers, the owner, business partners, banks and other institutions with the endeavours of each and every employee.

The satisfaction of our customers and other business partners shall be increased even further and we shall carefully manage business costs. Moreover, we would like to continue to prove that we are a reliable partner to business as well as household customers and other business partners. Along with all our colleagues at Elektro energija, I thank you for the confidence you have shown.

Igor Podbelšek, MSc Legal representative

2. The management’s statement

In accordance with Article 60.a of the Company’s Act, the management assures that the annual report of the Elektro energija d.o.o. is drawn up and shall be published in compliance with the Company’s Act and Slovenian Accounting Standards.

Igor Podbelšek, MSc Legal representative

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Energy is our concern. The key areas of our operation are electricity

trade and sales of electric energy to fi nal customers. We are building

long-term partner relations with a successful combination of both

activities.

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3. Presentation of the Elektro energija Group

3.1. Mission, values and strategic objectives of the Elektro energija Group

Our mission is to provide a reliable supply with energy products.

The values of our company are long-term partnerships with our business partners, a concern for the overall development of our employees, responsibility to all the participants and also the broader environment.

Strategic objectives:• strengthening the wholesale trading within a broader region,• maintaining a market share in retail trade in Slovenia,• entry into the market of other energy products,• expanding the supply of energy services,• providing stable financial business within the scope of acceptable risk.

3.2. General terms and conditions

The economic activity decreased in the first half of the year 2013. Confidence in the economy remained stable at the end of 2013; however, it is at a rather low level. The conditions on the labour market became more restrictive at the end of 2013; however, the deterioration in the bank system ceased.The gross domestic product in Slovenia was next to the increase in the last quarter in the entire year 2013 1.1% lower than the previous year. Due to the continued implementation of savings’ measures, the State’s spending is decreasing. Among the indicators of the economic activity in Slovenia there was a continued increase in the export and construction sector in the second half of the year. The export of goods also remains the only indicator that exceeds the level from the year 2008. The industry stagnated, since only with the gradual economic recovery in the euro zone there is a decrease in demand on other markets where the decrease in the value of foreign currencies has a significant effect on the decrease in price competitiveness. Despite the difficult financing conditions there is an increasing activity in the construction sector at a low level.The conditions on the labour market became more restrictive at the end of last year and at the beginning of this year. In the entire year of 2013, the number of persons with employment was more than 2% lower than the year before. The year 2013 was otherwise marked with a modest price growth mainly by tax changes. Despite the measures in the tax field (increase in VAT rates, excise duties, other taxes), inflation was lower by 2.7% compared to the previous year, mainly due to the weak economic activity in the domestic and international environment. In 2013, the problem of insolvency grew even worse. Among defaulted obligors there was a monthly average of 16,053 legal and natural persons with outstanding liabilities due by more than five days in a month which is 13% more than the year before. Thus, the number of defaulted obligors as well as the amounts of outstanding liabilities increased, non-payment deadlines are also longer. Among the debtors there was a 2.4-times more legal entities with 7-times higher

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debt than in 2008. Due to new legislation, the number of bankruptcy proceedings involving legal entities doubled in the second half of the year. In 2013, compared to the previous year there was 49.5% more bankruptcy proceedings instituted; 37.7% more compulsory compositions involving legal entities and 20% less bankruptcy proceedings involving sole traders. A quarter of the instituted bankruptcy proceedings were in the trading business, maintenance and repair of motor vehicles and one fifth in the construction sector.

In 2013, the situation in Slovenian banking system was not satisfactory; there was even further decrease in the volume of granted loans to the private sector. The companies responded to the restrictions on the supply side of the domestic banks by increased borrowing abroad. Reducing loans, next to the weak demand, is mainly the result of the restructuring of bank investments due to the reduction in the indebtedness to foreign countries, restrictions in financing and quality deterioration. The latter causes an increase in impairments and provisions which is reflected in the volume of granted loans and also the interest rates for loans given to companies. These are far above the average of the euro zone, next to the fact that the companies are already too deep in debt or have an unfavourable structure of resources.

In the second half of 2013, an elaborate review of the situation in the bank system was conducted in Slovenia; stress tests were performed for eight banks in Slovenia. Based on the test results, after the approval of the European Commission, the national government performed in the middle of December a capital increase for the three largest banks, and subsequently, the first transfers of assets to the Bank Assets Management Company (BAMC) were performed. Due to the transfer of €3.3 billion of banks’ claims to the BAMC, the volume of non-performing assets decreased in December. The Bank of Slovenia estimates that the capital adequacy of the Slovenian banking system after the capital increase of banks which are included in stress tests, shall increase to approximately 16%. The State’s deficit and debt on the other hand increased significantly due to the capital increase of banks in the last quarter. Capital increases have increased the deficit to 10.5% of the estimated GDP.

3.2.1. Energy balance for the year 2013

On 12 December 2012, upon the proposal of the Ministry of Infrastructure and Spatial Planning, the Government of the Republic of Slovenia adopted the Energy Balance of the Republic of Slovenia for the year 2013. The Energy Balance of the Republic of Slovenia was drawn up according to the internationally comparable EUROSTAT methodology based on data provided by the SURS for 2011 and partially for 2012 and data on providers of energy activities in the Republic of Slovenia in 2013.

The balances of electrical energy and natural gas of the Republic of Slovenia are particularly important for the company Elektro energija d.o.o. The final consumption of electrical energy which is foreseen in the Energy Balance of the Republic of Slovenia 2013 amounted to 13,017.3GWh,

which compared to the previous year is 2.8% more. The industry consumed 6,074.1GWh of energy or 2.6% more than the previous year, in traffic the consumption was 163.8GWh which is 3% more than the previous year and in other consumption 6,779.4GWh or 3% more than the previous year.

In 2013, the trend of reducing the use of fossil fuels for the production of electrical energy came to a standstill, however, the use of fossil fuels for the production of electrical energy compared to the previous year increased by 3%. The increase of use from renewable sources of energy and waste and the production of electrical energy from solar power stations continued. Since the needs for electricity in the Republic of Slovenia exceeded domestic production capacities, the estimated annual deficit of electricity in the Republic of Slovenia in 2013 amounts to 938.5GWh (which represents 6.2% of the gross consumption of electricity).

The final consumption of electricity which is foreseen in the Energy Balance of the Republic of Slovenia for 2013 shall amount to 661.8 million Sm3 which is 2.7% less compared to the previous year. The share of industrial consumption in the entire consumption of natural gas amounted to 59.2%, the share of households 16.4%, and the share of other consumers 24.4%. The Republic of Slovenia has imported most of the required natural gas, since the annual amount of obtained domestic natural gas covers only 0.23% of all the needs for this energy product.

3.2.2. Retail trade

In 2013, the terms and conditions of business on the retail electricity market did not improve in Slovenia due to the continuation of the economic and financial crisis. The electricity prices still continued with their downward trend in the first quarter of the year, reaching the lowest point of less than €42 /MWh in early spring and late autumn and stabilized at the level of €44 /MWh by the end of the year.

During the year, the final electricity price in Slovenia was influenced by the costs of the cross-border transmission capacity, since it occasionally exceeded 25% of the final electricity price.

With the retail prices of electricity we followed the situations on the wholesale markets. Therefore, we did not increase the prices to household customers; we supplemented our offer with customized products with a guaranteed price for a specific period which achieved good results. We provided additional discounts to more active household customers for the use of electronic accounts with added option to affect the price through the regulation of electricity consumption.

The electricity prices for business customers who have a more active role in the purchase consistently follow the prices in the wholesale market and primarily reflect the time of concluding contracts and the attitude towards risk on the part of consumers.

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The impact of the economic and financial crisis was also reflected in the increased credit risks. The liquidity of customers declined throughout the year, resulting in a further increase in the importance of actively monitoring the company’s claims, and verifying credit assessments in concluding and maintaining business operations.

The pressure of competition increased in 2012 due to even greater supply of energy sources in one place, however, we were able to increase the number of customers by 3.6% in business consumption and we managed to restrain the outflow of consumers and to maintain the largest market share in household consumption.

Business operations in 2013 were also marked with the active preparations for the adoption of the new Energy Act, which entered into force in March 2014. For the purpose of harmonising the business operation and supply with the new Energy Act we adapted our General terms and conditions for the supply of electricity to household consumers, the General terms and conditions for the supply of electricity to small commercial consumers and the General terms and conditions for the supply of natural gas.

3.2.3. Wholesale trade

The events on the wholesale electricity markets were very dynamic in the past year. The development of prices was especially marked with the following events: • good hydrology in the South Eastern Europe in the first half of the year, • worse hydrology in the South Eastern Europe in the second half of the year, • reduction of available cross-border transmission capacity (CBTC) for the import of electricity

from Austria to Slovenia.• implementation of a regular overhaul of the Krško Nuclear Power Plant in July.

Compared to 2012, the average price of electricity on the power exchange in Slovenia decreased by EUR10 /MWh, which is mainly contributable to the low prices of electricity in Germany and extremely good hydrology in the first half of the year in Slovenia. The weather conditions in Slovenia were strongly reflected on the average daily price of base-load power which at that time amounted to only EUR 38.95 /MWh. In the second half of the year, the prices began to rise and rose to EUR 47.4 /MWh. For comparison, let us mention that in the first half of the year 2013, the price of base-load power on the German power exchange amounted to EUR 37.40 /MWh, which is only EUR 0.67 /MWh less than the price was in the second half of the year.

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EPEX Spot (DE)BSP SouthPool (SI)

Picture 1: Movement of short-term prices of electricity in Slovenia and Germany

Comparison of short-term prices of electricity in Slovenia and Germany

The reasons for the high prices of electricity in Slovenia in the second half of the year also need to be looked for in the decrease of available CBTC for electricity transmission from Austria to Slovenia and in the overhaul of the Krško Nuclear Power Plant due to which the need to import electricity into Slovenia has increased significantly.

The average daily price of electricity on the Slovene power exchange BSP South Pool in 2013 amounted to EUR 43.17 /MWh, the average daily price on the Hungarian power exchange HUPX amounted to EUR 42.33 /MWh and the average daily price on the German power exchange EPEX spot amounted to EUR 37.77 /MWh. The difference between the Slovenian and the German price of electricity in 2013 amounted to EUR 5.4 /MWh and the price difference between the Slovenian and the Hungarian power exchange was EUR 0.84 /MWh. The cost of the annual CBTC for the import of electricity from Austria to Slovenia in 2013 amounted to EUR 5.5 /MWh, which was only EUR 0.1 /MWh more than the actual realization of the daily difference of the Slovenian and German power exchange in 2013. The cost of the annual capacities from Hungary to Slovenia amounted to EUR 0.59 /MWh.

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3.3. Ownership and organisation of Elektro energija

The management of the company is defined by the Companies Act and the Company’s Memorandum of Association. The company is organised as a private limited company and is 100% owned by Elektro Ljubljana d.d. who is also the 100% owner of the subsidiary Elektro Ljubljana OVE d.o.o. Elektro energija is liable with all its assets for its obligations in legal transactions.

Elektro energija is registered to perform the activities of the purchase and sale of energy products on the retail and wholesale market and other activities in accordance with the Memorandum of Association. Elektro energija d.o.o. established three subsidiaries in 2013 for the purpose of performing wholesale activities, namely Elektro energija Adria which operates in Croatia, Elektro energija BH which operates in Bosnia and Herzegovina and Elektro energija SRB which operates in Serbia. All three subsidiaries are 100% owned by Elektro energija d.o.o.

100%

100%Elektro

Ljubljana d.d.

Elektroenergija d.o.o.

Elektroenergija

Adria d.o.o.

Elektroenergija

SRB d.o.o.

ElektroenergijaBH d.o.o.

Picture 2: Organisation of Elektro energija as part of the Elektro Ljubljana Group

ElektroLjubljana OVE d.o.o.

The management on its own responsibility manages company’s business transactions in accordance with the annual business plan and the adopted foundations of the business policy that include the objectives and the strategy of purchasing and selling electricity and the risk management strategy. The founder supervises the company’s business management and upon the management’s proposal adopts the foundations of its business policy including the objectives and the strategy of purchasing and selling electricity and the risk management strategy.

Until 21 March 2013 the director of the company was Gregor Božič, MSc who was replaced by the company’s legal representative Igor Podbelšek, MSc on 22 March 2013. As of 1 January 2014 the founder appointed the procura holder Darko Butina.

3.3.1. Company’s ID

Company name ELEKTRO ENERGIJA, podjetje za prodajo elektrike in drugih energentov, svetovanje in storitve, d.o.o.

Short company name Elektro energija d.o.o.Registered office LjubljanaBusiness address Slovenska cesta 58, 1000 LjubljanaLegal organisational form Private limited companyEntity’s status registeredDate of entry of the entity in the court register 16 May 2011Management Igor Podbelšek, MScRegistration number 3974316000VAT registration number: SI19950853Share capital EUR 3,000,000Web address: www.elektro-energija.si

3.3.1.1. Company details of subsidiaries

Elektro energija Adria d.o.o.Company name ELEKTRO ENERGIJA ADRIA d.o.o.Short company name Elektro energija Adria d.o.o.Registered office Zagreb, CroatiaBusiness address Radnička cesta 80, 10 000 ZagrebLegal organisational form Private limited companyEntity’s status registeredDate of entry of the entity in the court register 25 July 2013Management Nikola Krečar, MScRegistration number 080869657VAT registration number: HR69734815287Share capital HRK 750,000

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Elektro energija SRB d.o.o., BeogradCompany name ELEKTRO ENERGIJA SRB d.o.o. BeogradShort company name Elektro energija SRB d.o.o.Registered office Belgrade, SerbiaBusiness address Bulevar Mihajla Pupina 6, 11 070 BelgradeLegal organisational form Private limited companyEntity’s status registeredDate of entry of the entity in the court register 21 March 2013Management Nikola Krečar, MSc, Jan ŠorliRegistration number 20910879Tax number: 107987419Share capital RSD 20,000,000.00

Elektro energija BH d.o.o., Company name ELEKTRO ENERGIJA BH d.o.o.Short company name Elektro energija BH d.o.o.Registered office Banja Luka, Bosnia and HerzegovinaBusiness address Aleja Svetog Save 61, 78 000 Banja LukaLegal organisational form Private limited companyEntity’s status registeredDate of entry of the entity in the court register 17 April 2013Management Nikola Krečar, MSc, Tanja Čuk Jeran, MScRegistration number 11101879Tax number: 403565500009Share capital KM 1,000,000.00

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Our own companies are present on the markets of Serbia, Bosnia and

Herzegovina and Croatia. Our balance groups for electric energy trade are present in eight European countries: Slovenia, Germany, Austria, Hungary,

Italy, Croatia, Serbia, Bosnia and Herzegovina.

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4. Business operations of Elektro energija

4.1. Significant events in the field of retail trade

In the field of retail trade, in the past year with the collaboration of the Slovenian Eco Fund, we were able to carry out invitations to tender in order to obtain non-refundable financial incentives for investing into measures of increasing energy efficiency for business investors in the value of EUR 1,032,000, however, 81.2% of the anticipated resources were granted. For household consumers we designed a more favourable package supply with a guaranteed price for a definite period. The year 2013 was our milestone in entering the natural gas market, which we entered in late summer and thus became a provider of several energy products. We successfully participated in the tender for the provision of the power capacity necessary for the implementation of tertiary frequency regulation by consumption management and dispersed production for 2014 and as the first generator of the dispersed power capacity succeeded to conclude a contract with TSO ELES.

Retail sale of electricity In the field of the retail sale of electricity, we also continued to provide stable and competitive conditions of electricity supply for our commercial and household consumers in 2013. The sale and purchase was conducted based on the needs and purchasing habits of buyers as well as their attitude towards risk taking. In our offer to the largest buyers we preserved the possibility of wholesale trading within the quantities intended for personal consumption. At the same time, we as the contractual generator of available power on the retail market began very successfully with marketing the services of controlled consumption management called the “Virtual Power Plant”, through which our partners may adjust their consumption in time and thus achieve savings in the final electricity price through received compensation for this adjustment.

At every point, we strengthened our partnerships with key buyers and improved our services with regard to advising, responsiveness and complaint solving.

In order to optimize our service for both household and commercial consumers we harmonised our business processes with the needs of our buyers and the existing and foreseen communication channels.

Industrial and larger commercial consumers mostly take an active role in purchasing electricity and conclude contracts for a limited time whereupon they have a known retail price and quantities for the chosen time period, or a known model for calculating the final price in potential partial purchases. These consumers choose the time of purchasing electricity themselves. We are developing a partnership with them and maintain an active approach with informing and meeting their needs, which - also with acquisition of new partners - enabled us to keep the market share in this segment.

Commercial consumers with a medium consumption conclude electricity purchasing contracts for limited or indefinite periods of time. The consumer can choose the type of contract, but in any case the amount of contracts concluded for a limited time period keeps growing. The contract

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type for each consumer is also related to the quantity of consumed electricity, which is not a decisive factor as in this segment smaller consumers have also already recognized the advantages of the competitive market. Due to the abundance, this segment is mostly managed by regular marketing activities.

In the segment of smaller commercial consumers whose contractual relationships are mostly concluded for an indefinite time period, we reduced the electricity prices at the end of 2013, whereby we adjusted the retail prices to the wholesale ones and strengthened the loyalty among our most loyal customers. In this segment we were able to keep the majority of existing customers and at the same time with competitive prices we were able to obtain additional small commercial consumers.

Participation in public procurements conducted by national budget users for the supply of electricity was characterized by extremely competitive offers due to lower credit risks also in 2013. By increasing the operational efficiency, we managed to apply to the majority of all tenders in the previous year; this was relatively closely followed by the success of acquiring new partners.

In the past year, Elektro energija completely renewed the offer for the supply of electricity to household consumers. The emphasis was on designing an offer adjusted to the market needs and at very competitive prices. The latter was, for the predominant part of the year, also evident from the comparator of the Energy Agency of the Republic of Slovenia, where our offer of unconditional and conditional packages was placed at the very top with respect to affordability.

For all household consumers who wanted to assure an unchanged electricity price for a longer period of time, we designed two unconditional packages with no commitment and no contractual penalties. We earmarked an extremely attractive price offer to new household consumers of electricity and we offered a special package with a guaranteed fixed price until the end of 2014 to larger household consumers and owners of heat pumps.

In the past year we set up and also upgraded all to the end of the year, the web portal www.zanesljivo.si, where consumers are provided with single energy products in only two steps. The web site was, at the competition of the best Slovene digital projects WEBSI - web champions 2013 in competition with 103 web sites, awarded with third place in the category of online stores.

Due to the positive response in our offer to household consumers, we continue to offer services “Turn up savings” (Vklopi prihranek) and “Turn up savings and pay up-to-date consumption (Vklopi prihranek in plačaj po sprotni porabi). With both services we assure household consumers up to 40% lower electricity costs at least twice a week in an at least two-hour interval.

Natural gas salesThe year 2013 was definitely very special for Elektro energija, due to entering into the natural gas market in Slovenia. In the context of purchasing and selling we took advantage of our existing knowledge, experience and resources and offered very competitive prices of natural gas to our electricity customers as well as other potential customers. On the web portal www.zanesljivo.si, we also enabled all consumers a very simplified conclusion of contracts for natural gas and electricity and supply of natural gas and electricity together.

We started the sales of natural gas in the last quarter of 2013 and exceeded the 1% market share by the end of the year. Numerically, household consumers represent the largest share of our customers.

Our competitive advantages When selling energy products and related services to household and commercial customers, the fundamental competitive advantage is without a doubt the stable and numerically largest portfolio of household and commercial consumers on the Slovenian market.We devote great attention to the needs of our customers; therefore in 2013 we were able to restrain the migrations of customers from previous years precisely with improving operational processes in the field of managing customer’s requirements and with a diverse customer-adapted and extremely low-cost package supply with energy products. 120 years of experience in the reliable supply of energy products is also used in other aspects for a continuous adaptation to the needs of the end consumer. This is not only enabled by professional and qualified staff, rational business operations and optimised organisation, but also good results in the field of international trade which are synergistically transferred to end customers of energy in Slovenia.

Main objectives of retail tradeThe main objectives pursued and achieved in the retail trade in the domestic market in 2013 were strengthening the marketing function in order to maintain the market share, entering into the natural gas market and increasing the quality of all the services we provide for our customers. We offered the market a diverse and most of all a customer-adapted supply of energy products, wherewith we restrained the outflow of customers in household consumption very successfully. We reduced credit risks by detailed monitoring of credit ratings and the business operations of our customers as well as with adapting our business operations and recovery processes.

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4.2. Significant events in the field of wholesale trade

The field of wholesale trade was in the past year characterized by the expansion of the trading infrastructure to the markets of Southeastern Europe and the commencement of purchase implementation and sales of natural gas. Due to the complexity of trading, we strengthened the staff with different experts and it is also necessary to mention the start of the integrated use of the new ETRM system to support trading, with which we have increased the effectiveness of our work and reduced operational risks.

Intensive development in Southeastern European marketsIn accordance with the company’s vision to become a recognizable wholesale trader on the territory of Southeastern Europe, we dedicated a lot of activities in the past year to the development of a business and trading infrastructure in this field. For the purpose of the latter, we established subsidiaries in Serbia, Bosnia and Herzegovina and in Croatia. In the Hungarian market we have registered a balance responsibility; we commenced with active trading on the bilateral market and became a member of HUPX power exchange. In 2013, in addition to the membership in the Hungarian power exchange we also became a member of the German-French Power Exchange EPEX Spot, while we have maintained an active membership in the Slovenian Exchange BSP SouthPool for many years now.

Through the subsidiaries in Serbia and in Bosnia and Herzegovina we commenced active trading on the bilateral market and to participate in public procurements of the national electric power companies. Trading through the subsidiary in Croatia still has not occurred, since the trading structure is only being set up. We participate in public procurements in all three subsidiaries in Southeastern Europe.

With the possibility of trading on new markets we enabled a greater dispersal of purchases and sales of electricity, better optimisation of our portfolio and new purchase routes.

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Picture 3: Growth of the number of partners in the field of wholesale trade

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Picture 4: Presence of Elektro energija on the European map

Commencement of implementation of natural gas purchase and salesIn the previous year, we also commenced with activities in the field of natural gas trading where we mainly implement purchases and sales of gas for the needs of retail sale. Natural gas represents a new product to us, for which it was necessary to upgrade particular processes and set up an infrastructure necessary to foresee the timetable and transmission of natural gas from Austria to Slovenia.

Main objectives of wholesale tradeAmong the most important realized objectives of the previous year we consider the expansion on the markets of Croatia, Bosnia and Herzegovina and Serbia. We founded the companies in Serbia and Bosnia and Herzegovina in the first half of the year, obtained all necessary licences and commenced with trading activities in the second half of the year.

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Croatia entered the EU on 1 July 2013. There was no change in energy legislation as anticipated; therefore in the summer we adopted the decision to found a company that shall enable us an independent performance on the Croatian market. In 2014, we commenced with trading activities.

In 2013, we entered the Hungarian market and commenced trading on the HUPX Power Exchange. Subsequently to the expansion of wholesale trading, we adapted our internal organisation and strengthened the staff with experienced traders.

4.3. Business in numbers

Elektro energija d.o.o. did not prepare consolidated data for 2013 according to the Slovenian Accounting Standards and in accordance with the Companies Act, since Elektro Ljubljana d.d., the sole owner and founder of the company agreed to the non-consolidation of data on the grounds that the subsidiaries of Elektro energija d.o.o. in their business operations have not yet had a significant impact on the true and fair view of the financial situation of Elektro energija. The controlling company of Elektro energija, i.e. Elektro Ljubljana d.d., has prepared consolidated financial statements of Elektro Ljubljana Group, in which the subsidiaries for 2013 are also not included.

Picture 5:Major highlights from business operations in 2013

2013Net sales revenues (in EUR) 443,761,665Net profit or loss of the accounting period (in EUR) 1,550,084Added value (in EUR) 6,151,872EBITDA 2,623,014Sales of electricity in MWh 8,787,053Sales of electricity in EUR 443,538,733Number of employees as at 31 December 2012 89Total assets as at 31 December 2013 (in EUR) 86,507,569Capital as at 31 December 2013 (in EUR) 11,986,522

In 2013, net sales reached EUR 443,761,665, added value was created in the amount of EUR 6,151,872 and operating profit was increased for write-downs and amounted to EUR 2,623,014.

Total assets on the balance sheet cut-off date amounts to EUR 86,507,569 and the capital amounts to EUR 11,986,522.On 31 December 2013 there were 89 employees in the company.

4.4. Profit or loss

Comparative figures for the year 2012 are in the Annual report of the company for 2012 and are evident from the Accounting report of the Annual report for 2013.

The company Elektro energija d.o.o. concluded the financial year 2012 with a net profit for the accounting period in the amount of EUR 1,550,084, which is EUR 1,657,462 or 51.7% less than the planned profit and EUR 1,922,473 less than in 2012.

RevenueIn 2013, the company generated a total income of EUR 444,651,878, which is EUR 76,673,967 or 14.7% less than the planned profit and EUR 42,898,867 or 8.8% less than in 2012.

The planned increase in sales revenues was based on the trend of growth of the wholesale quantities and income from 2011 and 2012, but the market situation disabled the planned growth without a significant increase in business risks. This was to a great extent influenced by the overall reduction of electricity prices on the wholesale markets, which had an impact on the lower volume of revenue with the successfully realized quantitative trading plan.

The total sales revenues, i.e. net sales revenues and other operating revenues amounted to EUR 444,250,286 in 2013, from which EUR 443,708,885 was created in the domestic market, EUR 52,780 on the foreign markets and EUR 488,621 is represented by other operating revenues. That is EUR 76,574,211 or 14.7% less than planned and EUR 42,799,372 or 8.8% less than realized in 2012.

The financial revenue represents 0.1% of total revenue or EUR 401,513. It was lower by EUR 99,835 or 19.9% than planned and by EUR 98,562 or 19.7% lower than realized in 2012.

ExpensesIn 2013, the total expenses of the company amounted to EUR 442,946,748, which is EUR 74,369,663 or 14.4% less than planned and EUR 40,895,379 or 8.5% less than realised in 2012. The decrease in expenses may largely be ascribed to the smaller volume of purchase costs of energy products than planned, which is the result of the overall reduction in electricity prices on wholesale markets.

The largest portion of expenses is represented by the purchase costs of energy products and costs of materials, i.e. 97.4% or EUR 431,533,434. These costs were by EUR 75,116,528 or 14.8% lower than planned and by EUR 41,254,687 or 8.7% lower than realized in 2012.

Service costs amounted to EUR 6,455,993 or 1.5% of all expenses and exceeded the planned costs by EUR 257,897 or 4.2%. They were higher by 9.9% than the realized service costs in 2012. In value, the planned costs were mostly exceeded by the phone costs, rental of business premises, bank services, advertising services and other services.

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Labour costs amounted to EUR 3,528,857 or 0.8% of the total expenses. The labour costs increased mainly because of the expansion of the wholesale trading activities, expansion of the supply of products in retail and adapting the quality of services to the requirements of our customers.

Write-downs amounted to EUR 912,502 and were 25.5% lower than planned. They were EUR 1,101,627 or 54.7% lower than write-downs realized in 2012. Their decrease was primarily the result of a smaller planned revaluated operating charge of operating expenses by EUR 1,298,425, and the costs of amortisation increased by EUR 200,097.

Financial expenses amounted to EUR 374,863. They were lower by 11.8% than planned and lower by 7.8% than realized in 2012.

Other expenses amounted to EUR 32,112 and were by 2.2 % lower than realised in 2012 and by 60.6 % higher than planned.

Net profit or lossThe net profit of the accounting period amounted to EUR 1,550,084 and fell behind the planned by EUR 1,657,462 or 51.7%, and by 55.4% behind the realized in 2012.

4.5. Asset and Financial situation

The total assets of the company as of 31 December 2013 amounted to EUR 86,507,569, which exceeded the planned total assets by 8.4% and the realised in 2012 by 7.6%.

AssetsThe company as of 31 December 2013 disposed of EUR 4,327,218 long-term assets which represent 5% of the total assets of Elektro energija. These are compared to the plan 27.8% higher and 54.5% higher compared to the situation as of 31 December 2012. The largest increase within the frame of long-term assets represents the long-term financial investments. These are investments into subsidiaries in the amount of EUR 794,289. Long-term operating receivables in the amount of EUR 322,423 represent claims against a foreign business partner in the field of wholesale trade, and the amount of EUR 860,949 deferred value added tax assets in insolvency proceedings.

Current assets that represent nearly 94% of company’s assets amounted to EUR 81,188,191 as of 31 December 2013 and have increased by 5.5% compared to the situation at the end of the year 2012. The largest portion of current assets is represented by short-term receivables due from customers which increased by 5.2% due to the increased volume of wholesale trade and increased securities for the purpose of wholesale trading.

Short-term deferred costs and accrued revenues have compared to the previous year increased by 44.2%, primarily due to the short-term accrued income in respect of deviations from the sales of electricity for losses and the supply of SODO in the field of Elektro Ljubljana d.d..

LiabilitiesThe share of the company’s capital in the total sources of funds amounted to 13.9% of total assets as of 31 December 2013 and has increased by 14.9% compared to the previous year. Its increase is the result of the net profit of 2013 brought forward in the amount of EUR 1,550,084.

8.000

6.000

4.000

2.000

0

10.000

12.000

2011

Picture 6: Changes in amount of capital

Capital (EUR 000)

2012

2013

Provisions and long-term accrued costs and deferred revenues have increased by 13.7% due to the increase of provisions for severance payments and employee bonuses.

Long-term liabilities include long-term financial liabilities only and have decreased by 25.1% compared to the past year. In 2013, the company has regularly paid off a respective share of the principal value of long-term loans and has not raised any new long-term loans.

12.500

12.000

11.500

11.000

10.500

13.000

14.000

13.500

Picture 7: Changes to financial liabilities

Financial liabilities (EUR 000)

2011

2012

2013

A predominant part, i.e. 91.6% of short-term liabilities which increased by 10% are represented by the short-term operating liabilities. These increased by 10.2%, namely primarily due to the

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increase of short-term operating liabilities arising from accounts payable by 11.0%, however, all other short-term operating liabilities decreased by a total of 3.7%.

Short-term accrued costs and deferred revenues amounted to EUR 1,100,523 as of 31 December 2013 and include pre-charged costs in respect of deviations from the sales of electricity for losses and supply in the field of distribution of Elektro Ljubljana d.d. and the liabilities for leave unexpended.

4.6. Information about the business operations of subsidiaries

In 2013, the net sales revenues of the subsidiary in Bosnia and Herzegovina amounted to EUR 5,579,976, and the operating profit or loss increased by write-offs amounted to EUR 84,181. During this period there was 119,460MWh of electricity sold and a net profit or loss in the amount of EUR 75,717 was created.

Elektro energija BH d.o.o. 2013Net sales revenues (in EUR) 5,579,976Net profit or loss of the accounting period (in EUR) 75,717EBITDA 84,181Sales of electricity (in MWh) 119,460Sales of electricity (in EUR) 5,579,976Number of employees as at 31 December 2012 1Total assets as of 31 December 2013 (in EUR) 4,659,832Capital as of 31 December 2013 (in EUR) 587,009

Total assets on the balance sheet date amounts to EUR 4,659,832 and the capital amounts to EUR 587,009. The company’s revenues represent a 1.2% share in the Elektro energija Group.

In 2013, the net sales revenues of the subsidiary in Serbia amounted to EUR 5,465,697, and the operating profit or loss increased by write-offs amounted to EUR 97,183. During this period there was 115,740MWh of electricity sold and a net profit or loss in the amount of EUR 87,694 was created.

Elektro energija SRB d.o.o. Beograd 2013Net sales revenues (in EUR) 5,465,697Net profit or loss of the accounting period (in EUR) 87,694EBITDA 97,183Sales of electricity (in MWh) 115,740Sales of electricity (in EUR) 5,465,697Number of employees as of 31 December 2012 1Total assets as of 31 December 2013 (in EUR) 4,270,470Capital as of 31 December 2013 (in EUR) 262,150

The total assets on the balance sheet cut-off date amounts to EUR 4,270,740 and the capital amounts to EUR 262,150. The company’s revenues represent a 1.2% share in the Elektro energija Group.

In 2013, the subsidiary in Croatia began to form basic functions and has not yet realized an operating revenue, thus the net profit or loss was also negative.

Elektro energija Adria d.o.o. 2013Net sales revenues (in EUR) 0Net profit or loss of the accounting period (in EUR) - 7,145EBITDA - 7,412Sales of electricity (in MWh) 0Sales of electricity (in EUR) 0Number of employees as of 31 December 2012 1Total assets as of 31 December 2013 (in EUR) 94,147Capital as of 31 December 2013 (in EUR) 91,053

The company has not realized operating revenues in 2013, and the operating profit or loss increased by write-downs amounted to EUR -7,142.

The total assets on the balance sheet cut-off date amounted to EUR 94,147 and the capital amounted to EUR 91,053.

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Our well-developed purchasing infrastructure and presence on

different markets enable us to to successfully manage the portfolio,

to understand the market and respond to it. For these reasons, we are able to offer the fi nal customers our products under the best possible

conditions.

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5. Risk management

Risk management in the Elektro energija d.o.o. is a systematic process of risk identification, its evaluation and the adoption of protective measures. Taking risks brings business opportunities that enable the realization of higher yields; therefore we in the company use a risk management system for balancing potential benefits and losses.

Risks are classified according to the source, to external and internal. External risks arise due to environmental changes, in which the company operates (political, economical, technological and social changes). Whereas internal risks originate from the company’s processes and performance methods and their management. Risks that originate from processes arise when the processes are not adjusted to the company’s strategy, when they are implemented inefficiently or falsely and when processes fail to increase the satisfaction of business partners. We encounter risks in all operating processes in the company; therefore we identify them on a regular basis and try to manage them within reasonable limits. We are aware that due to being a relatively young company we also face additional, greater risks, therefore the process of identification and risk management must be even more precise. Risk management for the Elektro energija Group, thus for the parent company and all three subsidiaries is carried out in a centralized manner in Elektro energija d.o.o. under identical procedures and with identical criteria.

We divide risks in the company into four following groups: market risks, business risks, credit risks and operational risks.

5.1. Market risks

Market risks include risks to which a supplier of energy products is exposed to due to the changes in the prices of goods, changes of interest rates, and changes of currency exchange rates.

Price risks are mostly affected by changes in the structure of production resources, the energy balance of a particular price region, limitations on cross-border transmission capacities, the weather and the current availability of transmission capacities. Price risks pertaining to purchase are managed by fixing the purchasing prices to the liquid market and by price forecasts. Price risks pertaining to sales are managed by linking the price for the consumers to the liquid market, by offering adequate insurances for customers and by linking the prices for the calculation of quantity deviations of the consumers to the liquid market.

Interest rate risks arise by raising loans related to the EURIBOR reference interest rate. All long-term loan contracts are concluded based on variable interest rates, however, all loans have a satisfactory level of fixed increases. Risks which might occur due to variable interest rates in the market are linked primarily to the possibility of an unexpected rise in the costs of the company’s financing. We control the loan portfolio which might be affected by the change of interest rate on a regular basis and at the same time we actively analyse and monitor the movement of interest rates. The loans whose interest rate deviates from the average are managed by inquiring in business banks to reduce the interest rates or exchanging to a fixed interest rate.

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In 2013, Elektro energija d.o.o. also commenced trading in foreign currencies, thus we were also partially exposed to the currency risk. This is mainly on the Hungarian market. Subsidiaries also traded with electricity in Bosnia and Herzegovina and in Serbia. Since only small business transactions were concluded we limit the currency risks primarily by monitoring and analysing the changes in currency values. The majority of settlements are conducted by linking the price to the euro, whereby the currency risk is neutralised.Picture 8: Review of market risks

moderate

low

difference between purchase and sale price of energy products

price risk

differences between realised and expected form of price graph

price risk

high change interestrates

interest risk

high change of exchange rates

currency risk

5.2. Business risks

Business risks include quantitative, liquidity and regulatory risks associated to performance of the basic activity.

Quantitative risks that arise due to the uncertainty of the consumption of energy products are very important for the supplier. The most frequent are the results of situations in the economy, the impact of weather, the differences between wholesale and retail products, the change of consumption quantity due to a change in the numbers of consumers in the sales portfolio and the random failure of infrastructure elements and other equipment or interventions of network operators. On the purchase side, we manage the quantitative risks by limiting the quantitative and the financial exposure in the purchases and sales of energy products, and through appropriate forecasts of required quantities, where we take into account the annual growth in consumption and the anticipated market share. Within the frame of contracts of sales of energy products, we manage quantitative risks by determining the potential tolerance zones of customer consumption and by calculating adequate premiums for them, by contractual provisions for a mandatory forecast of daily and annual amounts and by calculating quantitative deviations.

The next most significant business risks are liquidity risks that arise from the lack of depth of energy product markets. The causes of liquidity risks lie in the market structure, a shortfall of production units or transmission capacities, and exceptional weather conditions. We are trying to

overcome poor liquidity on wholesale markets by selecting suitable partners and with a temporal dispersion of purchase transactions.

Regulatory risks refer to off-market factors, such as legal complications, changes and indeterminate regulations and political decisions. We are protected against regulatory risks with adequate contractual provisions in order to be insured against changes of legislation, regulatory prices and charges. Regulatory risks are limited with up-to-date monitoring of legislation and participation in public consultations.

Picture 9: Review of business risks

moderate

low

difference between contractual and consumed/supplied quantity of electricity

quantity risk

lack of electricity’s market depth, illiquidity of certain products

liquidity risk

risk of changes of legislation or subordinate regulations

regulatory risk

5.3. Credit risks

Credit risks arise due to late payments, bankruptcies or compulsory compositions of the partners from the wholesale or retail market, failure to comply with contractual provisions by business partners and the quality of credit ratings. Credit risk management in the current economic situation has priority for the company, since it has great impact on business operations. For the purpose of credit risk management in the company in addition to external credit ratings, we also produce our own credit ratings, whereby we consider known formal and informal information. In order to reduce credit risks, we have devoted a lot of attention to the monitoring of debtors and management of claims. Credit risks with retail customers are managed with the use of advance payments or insurances, with limiting deadlines for payment and with introducing contractual penalties and damages in the event of early termination of the contract. In conducting business on the wholesale market, credit risks are limited with verifying the partner’s credit ratings, with setting up credit limits, adequate insurance and by monitoring all other available information.

Risks of disregarding the contractual provisions by business partners have a negative impact on the operating result of the company; therefore it is essential that they are properly managed. In order to reduce the risk of disregarding the contractual provisions by the business partners, we used standard EFET Master Agreements, which regulate the entire process from the conclusion

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of a contract up to the supply/consumption of energy products, as well as all the procedures in the event of potential violations which include the methods of compensation of damages. In order to reduce the risks in sales to final consumers, we used contracts which clearly define the contractual penalties and damages in the event of violations.Picture 10: Review of credit risks

moderate

low

financial loss due to bankruptcies and compulsory compositions of business partners

risk of bankruptcies and compulsory

compositions

financial loss due to disregard of contractual provisions

risk of disregarding contractual provisions

5.4. Operational risks

Operational risks include potential losses due to inappropriate information systems, incorrectly selected models, wrong or inadequate management and supervision, deceit, human error and loss of key personnel. We are protected against them with a continuous implementation of supervision over the development and operation of information systems, procedures of process and model verification, determining competence and limit the approval of competence of single employees during their job performance.

In order to remedy the risk of the improper operation of the information system, we have continuously carried out checks over the development and functioning of the information systems. This was implemented by our own knowledge and through purchasing well established business information systems.

We limited the risks of incorrect or inadequate management and supervision by procedures and processes of verification, defining competences and limitations as regards the approval of concluding business transactions for individual traders and sales personnel. The company’s exposure is being checked every day by examining the concluded business transactions and by monitoring the individual portfolios of the concluded business transactions. We monitor business transactions through our own information support which we upgraded in 2013 with investing into information supported trading systems with automatic checks and monitoring open positions. With all the aforementioned, the probability of unauthorized access into the information system, as well as human error and potential misuse shall be additionally reduced in the future. With the

same procedures we also limited the risk of fraud.

Human resources risks represent one of the most significant risks for a company as regards its growth and ever increasing volume of business operations. A company’s development and success depend on its employees; therefore we encourage the personal growth of each individual in his/her field of expertise. Self-initiative, professional expertise, flexibility, awareness of high-quality and responsible work, and most of all, good mutual relations are the foundations on which the company can build its future. The loss of key employees represents one of the highest risks for a company.

Picture 11: Review of operational risks

moderate

low

financial loss due to inadequate systems

informational risks

financial loss due to lack of management, control and deceit

risks of wrongful or insufficient management and control

loss of key personnel

HR risks

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6. Sustainability report

6.1. Quality systems

The company is certified according to ISO standards and has the approved certificates ISO 9001 - Quality management system and ISO 27001 - Information security management system.In addition to ISO certificates, the company also has the Family-friendly company certificate. Healthy and satisfied employees are one of the key factors of a successful company; therefore, the company within the scope of the certificate performs numerous activities for the promotion of health at the workplace.

All certificates together represent a management system and integration of good practice which represent a process that is continuously revised, supplemented and improved. It follows market, legal and internal process requirements. Today, this does not only present a convenient tool, but an essential part of the company’s operation. This is evident by both market pressure and legal provisions. The external evaluation SIQ in 2013 was very successful and demonstrated an operating integrated quality management system in the company.

6.2. Quality management system ISO 9001

The framework standard ISO 9001 is becoming a prerequisite for the successful operation of each and every company in today’s sharp competitive conditions. Permanent quality objectives are to comply with customer’s requirements, to achieve set strategic and tactical business objectives, to achieve optimal organisation and transparency of business operations, to conduct business in compliance with applicable regulations and constantly watch over the economy of business operations that shall enable the successful business operations of the company. Defined and regulated processes with continuous improvements of the latter are thus the key for the existence and future development of each business system. For this purpose, we co-ordinated our business processes with the adopted architecture.

6.3. Information security management system ISO 27001

With the development of the market system in the field of electricity, new technologies and new organisational models appear new risks in business operations which could become unmanageable without adequate measures. The primary purpose of the information security management system ISO 27001 in the company is to provide a greater degree of protection of confidentiality, integrity and availability of the company’s information.

By the standard implementation we are trying to provide adequate mechanisms for the permanent control and evaluation of information security and based on this also risk management related to information resources. A great emphasis was also assigned to raise the awareness of employees about the necessity of introducing specific security controls.

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eleKtRo eneRGIJA d.o.o.eleKtRo eneRGIJA d.o.o.AnnuAl RepoRt 2013

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We are committed to preservation of unspoilt natural environment. Our customers have an option to choose

green supply with electric energy from renewable sources – Green

energy. Green energy is clean, environmentally friendly and obtained from renewable sources, mainly from

small hydroelectric power plants.

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7. Corporate social responsibility

7.1. Concern for employees

One of the most significant strategic fields in Elektro energija d.o.o. is the management of employees. We are aware that competent colleagues are the company’s greatest asset and a key factor to its long-term success. Thus, we devote special attention to working with our employees and managing their potentials. As of 31 December 2013 there were 89 employees in the company.

40

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50

100

60

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Picture 12: Changes in the number of employees on the last day of the year in the period from 2011 to 2013

Number of employeesas of 31 December

6974

89

2011

2012

2013

Age structure of employees Picture 13:Review of the average age of employees on the last day of the year

2011 2012 2013Average age in the company on the last day of the year 42 42.54 41.69

Since the incorporation of the company the average age of employees has slightly decreased in the past year.Picture 14: Graphical presentation of the age structure of employees at Elektro energija d.o.o. as of 31 December 2013

1

7

21

1610

15

12

6

1

21-25

Age

31-35

26-30

36-40

41-45

46-50

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56-60

61-65

The age structure shows that approximately 53% of employees are from 31 to 45 years old.

Corporate social responsibility Corporate social responsibility 5150


Educational structure of employeesPicture 15: Review of educational structure of employees as of 31 December 2012

Unqualified Qualified Secondary education

Higher education

College education

Master of Science

Doctor of Science

Total

2 4 26 4 42 10 1 89

Picture 15: Graphical presentation of the educational structure of employees as of 31 December 2012

2

26

442

10

1

Unqualified

Qualified

Secondary education

Higher education

College education

Master of Science

Doctor of Science

4

The educational structure of employees shows that as many as 53 employees or 60% of all employees have a college degree, master’s degree or a doctorate; 30 employees or 34% of employees have a secondary or higher education, and 6 employees or 6% of all employees have less than a high school diploma.

The educational structure has improved in 2013 compared to the previous year due to the new employments of highly educated personnel. In 2013, the share of employees that have a college degree, master’s degree or a doctorate, namely increased by as much as 10% compared to the year 2012.

Training and development of employeesIn Elektro energija, since its incorporation in December 2011, education has played an important role. Employees have perfected their skills in different areas, from learning foreign languages to participating in different international conferences in the field of electricity trading, and also upgraded their knowledge in the field of the more efficient use of information technology.Also in 2013, annual interviews that personally bind employees to achieve set goals were conducted with the employees. The company’s objectives are a part of colleagues’ personal goals. Annual interviews without a doubt introduce a new culture of dialogue, since they enable

open discussion and encourage the awareness of an individual’s responsibility for business performance.

Concern for safety and health at workConcern for the health and quality of life of employees is one of the key policies of the company. We strive to provide employees with a health-friendly environment and well-being at the workplace. We assure employees with the implementation of medical check-ups in accordance with prescribed periodicals.

The company owns the full certificate Family-friendly company under which the company adopted a series of measures for the easier coordination of professional and family life. A great emphasis was given to the active promotion of a healthy way of living. In 2013, there were numerous activities conducted in the field of the promotion of health at the workplace from fitness and conducted organised workouts to precautionary breast examination for female colleagues. In 2013, we also introduced a new measure, i.e. the submission of information on company’s events to long-term absent colleagues.

The employees are also enabled with flexible working hours within which the employee may freely decide on the hour of arrival and departure. The measure is considered in exceptional cases when the employee due to family obligations fails to follow the organisation of working hours. This is mainly for the cases that follow the benefits of pre-school or younger children.

7.2. Communication with the public in 2013

Elektro energija follows the principle of quick responsiveness to the needs of single public, open and pro-active communication with different forms of communication. The key significance for a quick response lies with the employees, since they must be informed and equipped with all the necessary information first. We are aware of the fact that immediately after our consumers, the employees of Elektro energija are our most important public.

Elektro energija attends to giving information about the business operations itself and important events for the public with good relations with the mass media. In the past year we held two events for reporters. At the annual press conference in October, we notified the reporters and the broad public about the expanded offer of Elektro energija and the expansion of its business operations to international markets of Southeastern Europe. We also met with the reporters at the end of the year. We have regularly submitted press releases to the media. The company is also open to all enquiries from reporters and has also responded to them correctly. The most media publications in 2013 were related to raising public awareness of the affordable offer of the company.

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AnnuAl RepoRt 2013 eleKtRo eneRGIJA d.o.o.

events after the end of the calculating period

Parallel to the expansion of the offer of Elektro energija to natural gas as well, we presented ourselves to the general public with the updated web pages of the company: www.elektro-energija.si and the web portal www.zanesljivo.si and refreshed the comprehensive graphical image of the Elektro energija Group. In 2013, the company was also present and active on selected representative social networks.

Informing employees is conducted through the internal newsletter of the company Elektro Ljubljana d.d. Elektro news and e-news. In addition to all current issues, the employees first of all receive the press releases and other notifications as well. Of particular importance in a very dynamic and evolving business environment is the direct communication between employees.

7.3. Sponsorships and donations

In 2013, the largest portion of sponsorship funds has been donated by Elektro energija to sports; mainly to support the Slovenian National Football Team and some smaller sports clubs and societies in the local communities.

In 2013, for the second consecutive year, we supported the humanitarian project “Be a godparent” (Botrstvo) in Slovenia which operates under the auspices of Slovenian Association of Friends of Youth with donation funds as a part of a commitment to the social responsibility principle. The purpose of sponsorship is to reduce the social exclusion of children due to poverty and enabling better conditions for healthy child development, education, discovering and developing talents and thus a stimulated spending of childhood. Even in 2013, we at Elektro energija devoted the entire funds for business gifts to charity - the Sponsorship project. Once more, we also supported the Association to Help the Sick and the Suffering children - Red Noses, while visiting sick children in hospitals. Elektro energija has enabled the implementation of a regular monthly programme of clown doctors at the Children’s rehabilitation department of the University Rehabilitation Institute - Soča. With a donation we also supported the operation of the Elektro energija Sports Society where 70% of the company’s employees are active. At the end of 2013, a large number of employees responded to a charity fundraiser of giving holiday presents to children who need help the most. We delivered the presents to the Social Work Centre (CSD Šiška) and the Maternity Home Ljubljana.

8. Events after the end of the calculating period

A very important event after the end of the accounting period was without a doubt, the devastating ice glaze that hit Slovenia and the electricity consumers in the period from 30 January to 10 February 2014. The natural disaster has through the weak business operations of the affected partners additionally weakened their capacity to pay the supplied energy on time and thus has had a negative impact on the short-term liquidity of the company. To the extremely negative results of ice glaze, we can also contribute the loss of income and expected loss due to the compulsory sale of superfluous quantities of electricity. The Act on emergency measures for the elimination of the consequences of ice glaze has been adopted based on which the Ministry of Economic Development and Technology collects data for damage assessment. In accordance with Article 13 of the aforementioned Act we assessed the damages on loss of income for the year 2014 in the amount of EUR 506,987.

By the end of March, the new Energy Act (EZ-1), which modifies our operational conditions within the scope of retail trade in Slovenia, came into effect. The Act shortens the deadlines for the change of a supplier to three weeks. The requirement for publishing all offers for both household consumers and small commercial consumers where the connection power at the measuring point is less than 43kW. The Act prohibits a separated display and charging of fixed amounts within the so-called regular offer. Subsequently, we had to adjust the offer of products and general supply conditions for households and small commercial consumers of electricity as well as natural gas.

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In 2013, we sold 2.2TWh of electricity within Slovenia, keeping our 22 percent total market share. In the region, on the

other hand, the 5.5TWh of electrical power we traded amounted to a 6 percent increase from 2012.

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Financial Statements and Independent Auditor’s Report for the year ended as of 31 December 2013

Balance sheetas of 31 december 2013(in EUR)

Note 31 December 2013 31 December 2012A. long-term assets: 4,327,218 2,801,289I. Intangible assets and long-term deferred costs and accrued revenues 6.1. 1,194,305 1,117,3171. Long-term property rights 953,017 845,3395. Other long-term deferred costs and accrued revenues 241,288 271,978II. Property, plant and equipment 6.2. 1,155,252 916,1551. Land and buildings 660,177 689,479

a) Land 25,199 25,199a) Buildings 634,978 664,280

3. Other production equipment and machinery 495,075 226,6764. Tangible fi xed assets under construction 0 0IV. Long-term fi nancial investments 6.3. 794,289 01. Long-term fi nancial investments, except loans 794,289 0

Shares and equity interests from group enterprises 794,289 0V. Long-term operating receivables 6.4. 322,423 0VI. Deferred tax assets 6.5. 860,949 767,817B. Current assets: 81,188,191 76,925,595IV. Short-term operating receivables 6.4. 79,390,685 75,495,1721. Short-term operating receivables from group enterprises 1,279,696 30,6392. Short-term accounts receivables 74,913,040 69,808,1603. Short-term operating receivables due by others 3,197,949 5,656,373V. Cash and cash equivalents 6.6. 1,797,506 1,430,423C. Short-term deferred costs and accrued revenues 6.7. 992,160 688,185

TOTAL ASSETS 86,507,569 80,415,069A. Equity 6.8. 11,986,522 10,436,438I. Called-up capital 3,000,000 3,000,0001. Share capital 3,000,000 3,000,000II. Capital reserves 2,509,220 2,509,220V. Net profi t (or loss) brought forward 4,927,218 1,454,661VI. Net profi t (or loss) for the fi nancial year 1,550,084 3,472,557B. Provisions and long-term accrued costs and deferred revenues 6.9. 446,515 392,5571. Provisions for pensions and similar liabilities 446,515 392,557C. Long-term fi nancial and operating liabilities 6,186,593 8,263,441I. Long-term fi nancial liabilities 6.10. 6,186,593 8,263,4412. Long-term fi nancial liabilities to banks 6,186,593 8,263,441Č. Short-term fi nancial and operating liabilities 66,787,416 60,721,510II. Short-term fi nancial liabilities 6.10. 5,637,531 5,217,9481. Short-term fi nancial liabilities to group enterprises 0 02. Short-term fi nancial liabilities to banks 5,637,531 5,217,948III. Short-term operating liabilities 6.11. 61,149,885 55,503,5621. Short-term operating liabilities to group enterprises 314,137 375,5682. Short-term accounts payable 58,235,745 52,477,6005. Short-term operating liabilities arising from advances 1,256,422 1,263,6216. Other short-term operating liabilities 1,343,581 1,386,773D. Short-term accrued costs and deferred revenues 6.12. 1,100,523 601,123

TOTAL LIABILITIES 86,507,569 80,415,069

The notes to the fi nancial statements form an integral part of fi nancial statements and should be read in conjunction with them.

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Financial Statements and Independent Auditor’s Report Financial Statements and Independent Auditor’s Report 5958


Comprehensive income statementFor the year ended on 31st of December 2013(in EUR)

Note Year2013 Year20121. Net sales revenues 7.1. 443,761,665 486,948,053

a) on domestic market 443,708,885 486,892,496b) on foreign market 52,780 55,557

4. Other operating revenues 488,621 101,605Total revenues 444,250,286 487,049,658

5. Costs of goods, material and services 7.2. 437,989,427 478,664,172a) purchase value of goods sold and material used 431,533,434 472,788,121b) costs of services 6,455,993 5,876,051

6. Labour costs 7.3. 3,528,857 2,578,028a) cost of wages and salaries 2,605,701 1,825,813b) costs of supplementary pension insurance 339,980 250,641c) social security costs 194,218 137,321č) other labour costs 388,958 364,253

7. Write-downs 7.4. 912,502 2,014,129a) depreciation and amortisation 294,185 94,088b) revaluation operating expenses for intangible and tangible fixed assets 1,532 4,831c) revaluation operating expenses associated with current assets 616,785 1,915,210

8. Other operating expenses 7.5. 108,987 146,440 Operating profit (or loss) 1,710,513 3,646,889

9. Financial revenues from loans granted 7.6. 14,368 46,264a) financial revenues from loans granted to others 14,368 46,264

10. Financial revenues from operating receivables 7.6. 387,145 453,811a) financial revenues from operating receivables due to others 387,145 453,811

11. Financial expenses from financial liabilities 7.7. 373,049 384,359a) financial expenses from loans received from group enterprises 83 24,719a) financial expenses from received bank loans 372,966 359,640

12. Financial expenses from operating liabilities 7.7. 1,814 22,175a) financial expenses from accounts payable 1,814 15,335b) financial expenses from other operating liabilities 0 6,840

13. Other revenues 7.8. 79 1,01214. Other expenses 7.8. 32,112 32,824

Profit (or loss) before tax 7.9. 1,705,130 3,708,61815. Tax on profit 7.10. 248,178 1,003,87816. Deferred taxes 7.11. (93,132) (767,817)17. Net profit (or loss) of the accounting period 7.9. 1,550,084 3,472,557

18. Changes in revaluation surplus on available-for-sale financial assets 0 0

19. Total comprehensive income for the period 7.12. 1,550,084 3,472,557

The notes to the financial statements form an integral part of the financial statements and should be read in conjunction with them.

Cash flow statementFor the year ended on 31st of December 2013 (in EUR)

Note 9 2013 2012CASH FLOW FROM OPERATING ACTIVITIES

Inflows from the sale of products and services 595,634,116 650,624,975Other inflows from operating activities 565,528 167,746Inflows from operating activities 596,199,644 650,792,721Outflows for purchase of material and services (478,186,640) (539,006,281)Outflows for wages and salaries, employees’ profit-sharing (1,837,566) (1,380,314)Outflows for contributions and duties of all types (111,839,735) (110,022,820)Other outflows from operating activities (472,618) (272,074)Outflows from operating activities (592,336,559) (650,681,489)Net cash from operating activities 3,863,085 111,232

CASH FLOW FROM INVESTMENT ACTIVITIESInflows from interests and equity interests in other entities 17,261 43,799Inflows from disposal of tangible fixed assets 10,286 25,701Inflows from disposal of long-term financial investments 0 0Inflows from operating activities 27,547 69,500Outflows for acquisition of intangible fixed assets (338,053) (279,544)Outflows for acquisition of tangible fixed assets (333,812) (83,919)Outflows for acquisition of long-term financial investments (794,289) 0Outflows from investment activities (1,466,154) (363,463)Net cash used in investment activities (1,438,607) (293,963)

CASH FLOW FROM FINANCING ACTIVITIESInflows from paid-in capital 0 0Inflows from long-term loans raised 0 5,000,000Inflows from short-term loans raised 33,039,847 12,805,160Inflows from financing activities 33,039,847 17,805,160Outflows for interest paid (400,131) (376,633)Repayment of long-term financial activities (2,519,311) (1,303,785)Repayment of short-term financial activities (32,177,800) (15,318,375)Outflows from financing activities (35,097,242) (16,998,793)Net cash of outflows/inflows in financing activities (2,057,395) 806,367

CLOSING BALANCE OF CASH AND CASH EQUIVALENTS 1,797,506 1,430,423

Financial result in the period (sum of net flows) 367,083 623,636 Opening balance of cash and cash equivalents 1,430,423 806,787

The notes to the financial statements form an integral part of the financial statements and should be read in conjunction with them.

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Statement of changes in equityfor the year ended on 31st of December 2013(in EUR)

Changes in equity Share capital Capital reservesNet profit or loss brought forward

Net profit for the financial year

Totalequity

A.1. Balance as at 31 December 2012 3,000,000 2,509,220 1,454,661 3,472,557 10,436,438

B.2. Total comprehensive income for the reporting period 0 0 0 1,550,084 1,550,084

a) Entry of net profit/loss for the reporting period 0 0 0 1,550,084 1,550,084

B.3. Changes in equity 0 0 3,472,557 (3,472,557) 0

a)Allocation of the remaining portion of net profit for 2012 to other equity components

0 0 3,472,557 (3,472,557) 0

D. Balance as at 31 December 2013 3,000,000 2,509,220 4,927,218 1,550,084 11,986,522

ACCUMULATED PROFIT 0 0 4,927,218 1,550,084 6,477,302

Statement of changes in equityfor the year ended on 31st of December 2012(in EUR)

Changes in equity Share capital Capital reservesNet profit or loss brought forward

Net profit for the financial year

Totalequity

A.1. Balance as at 31 December 2011 3,000,000 2,509,220 0 1,454,661 6,963,881

B.2. Total comprehensive income for the reporting period 0 0 0 3,472,557 3,472,557

a) Entry of net profit/loss for the reporting period 0 0 0 3,472,557 3,472,557

B.3. Changes in equity 0 0 1,454,661 (1,454,661) 0

a)Allocation of the remaining portion of net profit for 2011 to other equity components

0 0 1,454,661 (1,454,661) 0

D. Balance as at 31 December 2012 3,000,000 2,509,220 1,454,661 3,472,557 10,436,438

ACCUMULATED PROFIT 0 0 1,454,661 3,472,557 4,927,218

The notes to the financial statements form an integral part of financial statements and should be read in conjunction with them.

Notes to financial statementsfor the year ended as of 31st of December 2013

1. Activity

Pursuant to the provisions of Article 623 of the applicable Companies Act (ZGD-1), in 2011, the company Elektro Ljubljana d.d. as a transferring company undertook restructuring to change the company’s status with a demerger procedure as one of the sub-forms of company division. Through this demerger procedure or property transfer, Elektro Ljubljana d.d. transferred its operations, employees, assets and liabilities which are functionally related to the purchase and sale of electricity. Furthermore, in the demerger procedure, the shares of the new company were secured to the transferring company Elektro Ljubljana d.d., which is the only partner of the new independent company Elektro energija d.o.o, to which the property was transferred in the demerger procedure.

The company generates revenues by wholesale trading of power as well as sales of electricity to end consumers. In 2013, the company also commenced with the sale of gas.

The parent company Elektro Ljubljana d.d., consolidates the financial statements of the company and also publishes them on their website.

The company Elektro energija d.o.o. is the 100 % owner of three controlled companies, namely Elektro energija BH d.o.o., Elektro energija SRB d.o.o. and Elektro energija Adria d.o.o.

The financial statements of the controlled companies of Elektro energija d.o.o. shall not be consolidated for 2013. One company was still not in business in 2013, and two of them began operating at the end of 2013 and are therefore not relevant to demonstrate the true and fair presentation of the financial situation, profit or loss, cash flow, and changes to equity of the controlling company. The fact sheet of the controlled companies of Elektro energija d.o.o. are:

Share capital Ownership Profit or loss of 2013Elektro energija BH d.o.o. 511,292 100% 75,717Elektro energija SRB d.o.o. Beograd 174,456 100% 87,684Elektro energija Adria d.o.o. 98,198 100% -7,145

2. Comparable Data

Due to a more proper presentation of data and due to the chart of accounts change, we reclassified other operating costs in the amount of EUR 70,113 to other labour costs in the balance sheet as of 31 December 2012 and the comprehensive income statement for 2012. Some other reclassifications of lesser values were also performed.

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3. Data on employees

As of 31 December 2013 there were 89 employees in the company and 74 as of 31 December 2012. The employee educational structure is provided in the Business report under Item 8.

4. Exchange rates and methods of conversion to national currency

the company converts all transactions done in foreign currencies by using the middle exchange rate of the Bank of Slovenia on the balance sheet date.

5. Summary of accounting policies

Elektro energija has drawn up the balance sheet as of 31 December 2013 and the comprehensive income statement, cash flow statement and the statement of changes in equity for the 2013 financial year in accordance with Slovenian Accounting Standards.

The performance analysis is presented under Item 4.3. to 4.5. of the business part of the annual report.

The company applied the following accounting assumptions:• The recorded balance sheets include assets and liabilities pertaining to the company’s activities

only. Costs, revenues and expenses are taken into account as incurred and are recorded in the accounting period to which they relate, regardless of inflows and outflows;

• It shall be deemed that the company still continues to operate in the foreseeable future, and those interim and annual results represent relative values only;

• The principle of historical cost has been applied in the compilation of the financial statements and notes thereto.

In its selection of accounting policies, i.e. the rules and procedures that must be observed and applied when compiling financial statements as well as throughout the accounting process, the company took into consideration the principle of prudence, giving precedence to substance over form and the significance of events.

For a better understanding of individual items in the statement, some items from the comparable period have been reclassified.

The company has respected the principle of individual valuation of assets and liabilities.

Version I under the Slovenian Accounting Standards (SAS) 25.5 was used to draw up the profit or loss statement.

The cash flow statement was drawn up according to Version I of the SAS 26.6, i.e. the direct method. Data for the composition of the cash flow statement derives from the accounting data.

Cash flows from operations also disclose the inflows and outflows from operating activities which the company performs in its own name as well as on behalf of SODO d.o.o. both on the inflows and outflows side. These activities, which do not constitute the company’s revenue, include

network charges with other fees on joint invoices issued for the supply of electricity.

The statement of changes in equity was drawn up pursuant to Version I of SAS 27.2.

a) Intangible assets, long-term deferred costs and accrued revenues and tangible fixed assetsIntangible assets comprise property rights for computer software. The cost value is represented by the purchase price. The assets lifetime is three and ten years.

Long-term deferred costs and accrued revenues comprise long-term chargeable costs for the development of information systems and statutory funds remunerated to the reserve fund for immovable property owned by the company. The cost value of long-term deferred costs and accrued revenues represent the expenses up to the moment of their acquisition. They are written down at the 10% rate.

The real estate at Slovenska cesta 58/II in Ljubljana represents fixed assets obtained by the company in the demerger process, equipment, comprising business premises equipment, computer equipment and vehicles.

The cost value of tangible fixed assets is composed of its historical cost and all duties and costs that can be directly attributable to qualify them for their intended use.

The company values the intangible assets and tangible fixed assets pursuant to the historical cost principle.

The company has no tangible fixed assets acquired by financial lease, nor has its assets been pledged by a mortgage.

b) DepreciationDepreciation is calculated according to the straight-line method of amortisation with regard to the useful life of cost value of a single fixed asset. Fixed assets under construction are not depreciated until they are put into service.

Amortisation rates applied in 2013 and 2012:

Buildings 2.00% to 5.00%

Equipment 6.67% to 20.00%

Vehicles 12.50% to 14.29%

Furniture 6.67% to 12.5%

Computer equipment 33.33%

c) Receivables The majority of operating receivables comprise of accounts receivable during a normal course of business operations. Receivables are disclosed at their net values in the balance sheet, and decreased by the amount of value adjustments created in relation to disputed and doubtful receivables.

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The company creates the value adjustments for receivables as follows:1. sales to end users (retail) - for receivables in bankruptcy proceedings not yet published in the

Official Gazette of the Republic of Slovenia, together with receivables under litigation and receivables from compulsory settlement proceedings awaiting confirmation, in the amount of 80%. In relation to other receivables due 90 days or more than 90 days ago, the value adjustment is based on experience from previous years and expectations for the current financial year; namely, in the amount of 30% for receivables pertaining to the supply of electricity and services, and 50% in relation to default interest receivables. Based on expert and experiential evaluation as well as in compliance with Work rules, the company’s expert body “Committee for Risk Assessment” may expressly propose to the Managing Director the value adjustment for individual receivables that derogate from this policy which must be substantiated with an official record and the assessment of the enforceability of the receivables. It is within the exclusive competence of the Managing director to adopt or reject the proposal.

2. sales to electricity traders (wholesale): The Managing Director adopts the resolution on the value adjustment for each individual receivable in respect of disputed receivables from the wholesale.

The amounts of created write-downs are attributed to the revaluated operating expenses and in favour of appropriate value adjustment.

For the final write-downs of receivables, appropriate documentary evidence shall be provided: refusal of confirmed balance of receivables, a judicial decision, a decision on the compulsory composition, a decision on the bankruptcy proceedings and other relevant documents from which it is evident that all possible recovery procedures were performed.

d) ProvisionsThe company creates non-current provisions for employee bonuses and severance payments received upon retirement as the current value of employer’s liability towards the employee. They are created because of SAS 2006 requirements. The calculation of non-current provisions was performed by an authorised actuary.

e) Deferred tax assets and liabilities The company recognises and establishes deferred tax assets which represent tax on profit and shall be paid in future tax periods, based on deductible temporal differences which occur due to provisionally unrecognized expenses for the adjustments formed in respect of disputed receivables and temporary unrecognized tax expenses for the provisions formed in respect of employee bonuses and severance payments upon retirement. Deferred tax assets are determined based on the amount which is expected to be refunded from the Tax Administration and with the application of tax rates or tax regulations valid as at the balance sheet date. If a change of tax rate is expected, the deferred tax assets are measured by tax rates which are expected to be applied in the financial year in which the tax assets shall be refunded.

The company does not recognise nor remedy deferred tax liabilities because it does not have deductible provisional differences that lead to deferred tax liabilities.

f) TaxationThe company is liable to pay corporate income tax.

g) Cash and cash equivalentsCash and cash equivalents are funds on current bank accounts and deposits redeemable at notice with commercial banks.

h) Financial investmentsInvestments include long-term financial investments to subsidiaries in Croatia, Bosnia and Herzegovina and Serbia.

At least once a year, namely prior to the drawing up of annual financial statements, the company checks the adequacy of the presented size of a single financial investment. If any of the financial investments are losing in value it assesses what adjustment of its original value must be created in the revaluation financial expenses. In addition, it must perform a partial or total write-down of the financial investment directly in the revaluation financial expenses as soon as reasons for the latter occur.

i) Short-term accrued costs and deferred revenuesShort-term accrued costs and deferred revenues include short-term deferred income and costs which debit operations as on 31 December 2013 and shall be charged in 2014.

j) EquityTotal equity is defined with amounts invested by the owner and amounts generated from business operations and belongs to the owners.

Share capital and capital reserves represent cash and in-kind contributions made by the owners of the controlling company.

Net profit or loss brought forward is the sum of net profits or losses from previous years. Net profit or loss of the current year represents an unallocated portion of the net profit or loss of the current year.

k) Long-term and short-term financial liabilitiesLong–term and short-term financial liabilities arise from the company’s financing and represent liabilities towards creditors.

Upon initial recognition they are recognised in the amount of received funds and are later reduced by the amounts paid. They are measured at the amortised cost.

That portion of long-term financial liabilities which shall become due within one year of the balance sheet date is disclosed under short-term liabilities.Short-term operating liabilities are liabilities towards suppliers. At the beginning they are assessed based on amounts from the corresponding documents which prove that the goods were received and services rendered.

The book value of long-term and short-term liabilities is equal to their amortised cost.

l) RevenueRevenues are increases in economic benefits within a financial year in the form of an increase in assets or a decrease in debts. They are recognised when it is reasonable to expect that they shall lead to incomes.

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Operating revenues are revenues from sales and other revenues related to operating effects.

Net revenue sales are composed of the sales values of sold goods (electricity). They are calculated on the basis of contractual values and sales prices stated on invoices, and decreased by the sum of potential discounts granted.Financial revenues represent income from investments. They arise from long-term and short-term financial investments, as well as long-term and short-term receivables. They derive especially from accrued interest. They are recognised upon calculation, regardless of inflow.

Other revenues disclose revenues not classified as operating nor financial revenues. They are disclosed in the amounts in which they actually arise.

m) Expenses, costsExpenses and costs are decreases in economic benefits within a financial year in the form of a decrease in assets or increase of debts. They are recognised when the decreases in economic benefits within a financial year are related to decreases in the value of assets or increases of debt and these decreases or increases can be reliably quantified.

Operating expenses are equal to accrued costs in the accounting period. They disclose the purchase value of sold goods, costs of materials, costs of services, labour costs and depreciation.

Other operating expenses include various other duties and provisions.

Revaluated operating expenses arise from tangible fixed assets and represent write-downs of tangible fixed assets having a residual (non-written-off) book value. They also arise from the disposal of fixed assets when the book value exceeds the sales value and with current assets where the amounts of created value adjustments in respect of doubtful and disputed claims are disclosed.

Financial expenses are expenses from financing and investing. They derive especially from accrued interest. They are recognised upon calculation, regardless of related payments.

Other revenues disclose expenses not classified as operating nor financial expenses. They are disclosed in the amounts in which they actually arise.

6. Disclosure of balance sheet items

6. 1. Intangible assets and long-term deferred costs and accrued revenues

Year 2013 (in EUR)

Long-term property rights, concessions and licences

Long-term deferred operating expenses Reserve fund

Total intangible assets and long-term deferred costs and accrued revenues

Purchase value

Balance as of 31 December 2012 421,962 933,044 3,150 1,358,156

Reclassif. 1 January 2013 822,199 (822,199) 0

Reclassif. 1 January 2013 157,982 157,982

Balance as of 1 January 2013 1,244,161 268,827 3,150 1,516,138

Increases 725,299 5,310 1,958 732,567

Decreases (451,247) (37,958) 0 (489,205)

Balance as of 31 December 2013 1,518,213 236,180 5,108 1,759,501

Value adjust.

Balance as of 31 December 2012 240,839 0 240,839

Reclassif. 1 January 2013 157,982 0 157,982

Balance as of 1 January 2013 398,821 0 398,821

Amortisation (depreciation) 166,543 0 166,543

Decreases/write-downs (168) 0 (168)

Balance as of 31 December 2013 565,196 565,196

Book value


Reclassif. 1 January 2013 664,217 (664,217) 0

Balance as of 1 January 2013 845,339 268,827 3,150 1,117,317


Year 2012 (in EUR)

Long-term property rights, concessions and licences

Long-term deferred operating expenses Reserve fund

Total intangible assets and long-term deferred costs and accrued revenues

Purchase value


Increases 178,998 255,173 1,958 436,129

Decreases (5,692) (93,492) 0 (99,184)


Value adjust.


Amortisation (depreciation) 1,542 1,542

Decreases/write-downs (5,692) (5,692)


Book value

Balance as of 31 December 2011 3,667 771,363 1,192 776,222


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Intangible assets are represented by the property rights for computer software. Deferred costs and accrued revenues comprise long-term chargeable costs for investing in the development for the purposes of the sale of electricity and keeping of the main book in the integrated information system and paid statutory funds to create reserve fund in accordance with the Housing Act. As of 1 January 2013, the amount of EUR 664,216 referring to computer programs purchased and produced in order to implement the informational support of business operations at places other than Informatika d.d. was transferred from long-term deferred operating costs.

6.2. Property, plant and equipment

Year 2013 (in EUR)

Land Buildings Equipment Advances Total tangible fixed assets

Purchase valueBalance as of 31 December 2012 25,199 1,762,574 536,480 0 2,324,253

Increases 8,354 362,155 370,509

Decreases 0 (63,272) 0 (63,272)Balance as of 31 December 2013 25,199 1,770,928 835,363 0 2,631,490

Value adjustmentBalance as of 31 December 2012 1,098,294 309,804 1,408,098

Amortisation (depreciation) 37,656 89,986 127,642


Balance as of 31 December 2013 0 1,135,950 340,289 1,476,239

Book valueBalance as of 31 December 2012 25,199 664,280 226,676 0 916,155

Balance as of 31 December 2013 25,199 634,978 495,075 0 1,155,252

Year 2012 (in EUR)

Land Buildings Equipment Advances Total tangible fixed assets

Purchase value

Balance as of 31 December 2011 25,199 1,759,524 471,821 2,000 2,258,544

Increases 3,050 167,258 170,308

Decreases 0 (102,599) (2,000) (104,599)

Balance as of 31 December 2012 25,199 1,762,574 536,480 0 2,324,253

Value adjustment

Balance as of 31 December 2011 1,060,801 326,819 1,387,620

Amortisation (depreciation) 37,493 55,052 92,545


Balance as of 31 December 2012 1,098,294 309,804 1,408,098

Book value

Balance as of 31 December 2011 25,199 698,723 145,002 2,000 870,924

Balance as of 31 December 2012 25,199 664,280 226,676 0 916,155

The purchase value of tangible fixed assets has increased by EUR 370,509 in 2013. New tangible fixed assets are mostly computer equipment. The decrease in the purchase value due to elimination stood at EUR 63,272 and is mostly related to computer equipment and personal vehicles.

The company’s business premises are located in the former premises of Elektro Ljubljana d.d.

The value adjustment of the purchase value of tangible fixed assets has increased by EUR 127,642 due to amortisation and decreased by EUR 59,501 due to disposal of assets.

6.3. Financial investments

Long-term financial investments are investments into subsidiaries in the amount of EUR 794,289.

6.4. Operating receivables

Short-term accounts receivables(in EUR)

Balance as of 31 December 2013

Balance as of 31 December 2012

Accounts receivable 79,237,420 74,431,440

Receivables from group enterprises 1,279,696 30,639

Receivables from default interests 488,202 511,372

Total accounts receivable 81,005,318 74,973,451

Adjustment of accounts receivable (4,812,582) (5,134,652)

Total accounts receivable with adjustments 76,192,736 69,838,799

Age structure of operating accounts receivable (in EUR)31 December 2013 % 31 December 2012 %

Not due 67,117,777 82.9% 58,433,354 77.9%

Overdue by up to 30 days 4,298,676 5.3% 5,069,701 6.8%

Overdue from 31 to 60 days 1,619,963 2.0% 1,654,584 2.2%

Overdue from 61 to 90 days 397,214 0.5% 506,025 0.7%

Overdue by more than 90 days 7,571,688 9.3% 9,309,787 12.4%

Total 81,005,318 100.0% 74,973,451 100.0%Created adjustment (4,812,582) (5,134,652)

Balance 76,192,736 69,838,799

In all operating accounts receivables at the end of 2013 there were 17.1% of such, which were not settled at the date of maturity, there were 22.1% of such receivables as of 31 December 2012. The receivables overdue by more than 90 days also include the accounts receivables which are in the procedure of compulsory composition, under litigation or in a bankruptcy proceeding and for which the value adjustment was already formed.

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Table of changes in value adjustments for accounts receivable in 2013(in EUR)

Adjustment of original receivables

Adjustment of default interest

Total

Value adjustment of receivables as of 31 December 2012 4,815,042 319,610 5,134,652

Additional adjustment of receivables 585,520 31,265 616,785

Decrease - write-down (883,416) (55,439) (938,855)

Final balance of value adjustment for receivables as of 31 December 2013 4,517,146 295,436 4,812,582

The value adjustment of receivables decreased by 6.3% compared to 2012. The decrease is primarily the result of a lesser volume of bankruptcies, compulsory compositions, strike-offs and legal actions.

Short-term operating receivables due by others represent 4.1% of all short-term operating receivables. The major part appertains to receivables arising from deductible VAT, which is due in the following tax period and to receivables for the refund of the overpaid corporate income tax.

Accounts receivable in retail, except for households, are secured with blank bills of exchange and enforcement drafts according to credit rating. Accounts receivable in wholesale are secured with parent company guarantees, guarantees or other corresponding insurance instruments.

6.5. Deferred tax assets

Formation of deferred tax assets(in EUR)

Adjustment balance as of 31 December 2013

Adjustment balance as of 31 December 2012

Temporary differences based on formation of adjustments for accounts receivable 818,139 733,035

Temporary differences based on unrecognized amounts of provisionsfor employee bonuses and severance payments at retirement 42,810 34,782

Total 860,949 767,817

6.6. Cash and cash equivalents

Cash and cash equivalents represent deposit money on current accounts in the amount of EUR 1,533,455 and bound by call of funds in the amount of EUR 264,051.

There were EUR 3,497,854 funds available as of 31 December 2013 which in respect to automatic indebtedness on the current bank account were not utilised yet.

6.7. Short-term deferred costs and accrued revenues

(in EUR) 31 December 2013 31 December 2012

Accrued revenue 981,827 670,693

Prepaid expenses 10,333 17,492

Total 992,160 688,185

The booking assessment of accrued revenues from the electricity sale for 2013 on short-term deferred costs and accrued revenues amounts to EUR 930,102 and the amount of EUR 51,725 deferred accrued revenue from services rendered to subsidiaries.The amount of EUR 10,333 represents prepaid expenses of licence costs, insurance premiums and access to databases.

6.8. Equity

The company’s equity is 100 % owned by Elektro Ljubljana d.d. and is composed of the following items as of 31 December 2013:

Table of equity components(in EUR)

31 December 2013 31 December 2012

Share capital 3,000,000 3,000,000

Capital reserves 2,509,220 2,509,220

Net profit brought forward 4,927,218 1,454,661

Net profit of the financial year 1,550,084 3,472,557EQUITY 11,986,522 10,436,438

NET PROFIT FOR THE FINANCIAL YEAR 1,550,084 3,472,557

Changes related to equity are disclosed in the statement of changes in equity on page 5.

Net profit for the financial year 2013 amounts to EUR 1,550,084.

Distributable profit in 2013(in EUR)

31 December 2013

Net profit brought forward 4,927,218

Net profit of the financial year 1,550,084

DISTRIBUTABLE PROFIT 6,477,302

The Managing Director and the President of the founding company who represents the supervisory board have in accordance with the competencies stipulated by the Company’s Act decided upon the preparation of the final accounts for 2013 that, the distributable profit for the financial year shall be retained by the company as undistributed profit.

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6.9. Provisions

Changes to provisions in 2013(in EUR)

Severance payments Employee benefits Total provisions

Balance as of 31 December 2012 161,989 230,568 392,557

Consumption/utilization 0 (14,071) (14,071)

Formed 27,870 40,159 68,029

Balance as of 31 December 2013 189,859 256,656 446,515

According to the actuary calculation, the liabilities for severance payments upon retirement as of 31 December 2013 amount to EUR 189,859, and loyalty bonuses amount to EUR 256,656. Loyalty bonuses were paid in the amount of EUR 14,071. There was an additional formation for loyalty bonuses in the amount of EUR 40,159 and provisions for severance payments upon retirement in the amount of EUR 27,870. The amount of provisions increased compared to the year 2012, mainly because of changed circumstances outside the company which are taken into account at the actuary calculation.

Assumptions applied in the actuary calculation:• Number of employees as of 31 December 2013 (gender, age, total and retirement period of

service, average net and gross salary for the period from October to December 2013);• The method applied in the calculation of severance payments and employee benefits in the

company;• Growth of average salary by 2.5%;• Nominal long-term interest rate: 3.05%.

6.10. Financial liabilities

Long-term and short-term financial liabilities primarily represent liabilities for received bank loans, namely(in EUR)


Long-term financial liabilities to domestic banks 6,186,593 8,263,441

Short-term part of long-term financial liabilities to banks 1,635,385 2,077,848

Short-term financial liabilities to domestic banks 4,002,146 3,140,100

Total 11,824,124 13,481,389

The short-term part of long-term loans is disclosed in the balance sheet between short-term financial liabilities in the amount of EUR 1,635,385.

Bills of exchange and in one of the loans, a letter of comfort by Elektro Ljubljana d.d. were issued as an insurance instrument for credit insurance.

Long-term and short-term financial liabilities to domestic banks from previous years are loans that were transferred to the company in the demerger procedure. The loans were taken out for the purposes of current business activities of purchase and sales of electricity. The loans are due by 2018.

In 2013, the average interest rate of long-term loans ranged from 0.4738% to 3.9034%, and in 2012 from 0.7415% to 3.1924%.

In 2012, the company took out a long-term loan in the amount of EUR 4,999,000 for a period of five years and interest rate of 3M EURIBOR (360) + 3.7%.

In 2013, the company did not take out any long-term loans. Short-term liabilities to domestic banks represents a loan for permitted indebtedness on the current bank account as of 31 December 2013 at a interest rate of 5.6% and a short-term loan in the amount of EUR 1,500,000 at interest rate of 1M EURIBOR + 3.6%.

6.11. Operating liabilities

Operating liabilities are primarily current operating liabilities to suppliers. In the majority, these are liabilities to suppliers of electricity and to suppliers of network charges with contributions.

The balance of total liabilities to suppliers as of 31st December 2013 has in comparison to the balance as of 31st December 2012 increased by 11%.

Short-term operating liabilities to suppliers(in EUR)


Liabilities to suppliers of electricity 48,017,311 42,793,803

Liabilities to other suppliers 10,532,571 10,059,365

Total 58,549,882 52,853,168

Other operating liabilities include liabilities to employees for December salaries and current operating liabilities to the government and other institutions.

6.12. Short-term accrued costs and deferred revenues

Table of changes to short -term accrued costs and deferred revenues in 2013(in EUR)

Balance as of 31 December 2012 Increase Decrease Balance as of 31

December 2013

Pre-calculated adjustment costs arising from offsets 500,119 906,243 435,803 970,559

Provisions for annual leaves 101,004 28,960 0 129,964

Total 601,123 935,203 435,803 1,100,523

In the short-term accrued costs and deferred revenues the amounts for adjustment of accounts of sold electricity in respect of losses for 2013 according to the balance accounts of electricity trading balances with all participants in power trading are booked. The same applies for 2012.

The amount of provisions for unused leave in 2013 is formed in the amount of EUR 129,964.

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7. Disclosure of comprehensive income statement items

7.1. Net sales revenues and other operating revenues

Net sales revenues primarily comprise revenues from the sale of electricity.In 2013, total net sales revenues amounted to EUR 443,761,665, and in 2012 to EUR 486,948,053.

7.2. Costs of goods, material and service

The costs of goods are represented by the purchase of electricity, which amounted to EUR 431,303,369 in 2013 and to EUR 472,576,678 in 2012. In 2013, they decreased by 8.7%, primarily due to the smaller scope of wholesale operations on the electricity market.

The costs of material primarily include the costs of stationary.

The costs of services amounted to EUR 6,455,993 in 2013, and to EUR 5,876,076 in 2012. Compared to 2012 they increased by 9.9% mainly due to higher recovery costs and payment transactions.

7.3. Labour costs

Labour costs include salaries and wages calculated in accordance with the company’s collective agreement and applicable regulations governing the calculation of salaries and wages.

In 2013, the labour costs were calculated in the amount of EUR 3,528,857, and in the amount of EUR 2,578,028 in 2012 of which costs of salaries and wages amounted to EUR 2,605,701 in 2013 and EUR 1,825,813 in 2012, costs of pension insurance of employees amounted to EUR 339,980 in 2013 and EUR 250,641 in 2012, costs of social security amounted to EUR 194,218 in 2013 and EUR 137,321 in 2012.

Other labour costs comprise employee annual leave bonus, other employment earnings, reimbursement of travel-to-work costs and meal allowances, costs of voluntary employee accident insurance and social relief costs. In 2013, other labour costs amounted to EUR 388,958 and in the amount of EUR 364,253 in 2012.

7.4. Write-downs

Depreciation was calculated from the purchase price of fixed assets.

Revaluation operating expenses for current assets represent formed adjustments of accounts receivable arising from doubtful and disputed receivables. These were by 32.2% lower in 2013 than 2012. Notes with regard to the formation and changes in adjustment for receivables are provided under Item 5. c) and 6.4. hereunder.

7.5. Other operating expenses

Other operating expenses are mainly provisions for unused leave in 2013, unrecognised VAT, fees and other operating expenses.

7.6. Financial revenues

Financial revenues from operating receivables mostly refer to default interest for untimely payments for the supply of electricity.Financial revenues from the loans granted to others are revenues for short-term free assets.

7.7. Financial expenses

Financial expenses from financial liabilities for charged interest rates arising from loans amount to EUR 373,049 in 2013 of which the interest between affiliated persons amount to EUR 83. In 2012, they amounted to EUR 384,359 and the interest between affiliated persons amounted to EUR 24,719.Financial expenses from operating liabilities mostly pertain to interest liabilities to suppliers in respect of untimely settled obligations.

7.8. Other revenues and other expenses

Other revenues are mostly revenues which are not directly related to business operations. Other expenses are expenses from granted donations and financial assistance.

7.9. Net profit or loss of the accounting period

In the financial year of 2013, the company generated a pre-tax net profit of EUR 1,705,130 and a net profit for the accounting period of EUR 1,550,084.

General revaluation of equity

If the company performed a general revaluation of equity it should have disclosed a net profit (without considering the corporate income tax payment) in the amount of EUR 1,471,604 based on the calculation of growth in the consumer price index in 2013 which amounts to 0.7%.

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7.10. Corporate income tax

In 2013, the corporate income tax for the financial year amounted to EUR 248,178.

The table of corporate income tax calculation for 2013:(in EUR)


Profit before tax 1,705,130 3,708,618

Estimated tax 289,872 667,551

Estimated tax changes due to:

+ unrecognized tax expenses 39,704 35,071

- revenues exempt from taxation 0 (2,276)

- increasing expenses, tax relief (192,034) (47,516)

- first recognition of deferred taxes from previous periods 0 (416,769)

+ tax rate changes 13,632 0

+ other 3,873 0

Tax 155,046 236,061

Effective tax rate 9 % 6 %

Tax expense components for 2013:(in EUR)


Calculated tax 248,178 1,003,878

Deferred tax (93,132) (767,817)

Tax expense 155,046 236,061

7.11. Deferred taxes

Deferred taxes from deductible temporary differences for the year 2013 amounted to EUR 93,132. Deferred taxes are designed based on the amount which is expected to be refunded from the Tax Administration and with the application of tax rates or tax regulations valid on the balance sheet date and which are expected to be applied in the financial year, in which the receivables shall be refunded. Review of deferred receivables is provided in the Financial report under Item 6.5.

7.12. Total comprehensive income of the accounting period

The total comprehensive income of the accounting period 2013 is equal to net profit or loss of the accounting period and amounts to EUR 1,550,084.

8. Costs per functional groups(in EUR)

2013 2012

Production costs 432,659,507 473,871,310

Sales costs 8,087,018 6,278,383

Costs of overall activities 1,174,931 1,332,310

A breakdown of costs as per functional groups is provided by the records of costs sustained according to the cost centres and accounts. For this purpose, costs centres and accounts appertaining to individual functional groups are defined.

9. Cash flow statement

Cash flow statement discloses the changes in cash and cash equivalents for financial year 2013, and compares them to the data recorded in 2012.

Cash flows(in EUR) 2013 2012

Cash flows from operating activities 3,863,085 111,232

Cash flows from investment activities (1,438,607) (293,963)

Cash flows from financing activities (2,057,395) 806,367

Cash flow in the period 367,083 623,636

In 2013, net cash operating inflows amounted to EUR 3,863,085. Cash flows from investment activities were negative. In comparison to 2012, the company has a significantly larger positive cash flow from operating activities and a negative amount of cash flow from financing activities.

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10. Disclosure of events with related parties

As of 31 December 2013, the company recorded receivables and liabilities to related parties as a result of normal course of business operations, namely:(in EUR)


BAlANCE SHEET:

Assets:

Receivables to Elektro Ljubljana d.d. 1,343,568 30,639

lIABIlITIES:

Liabilities to suppliers of Elektro Ljubljana d.d. 152,881 192,198

Liabilities to suppliers of El.Lj. OVE d.o.o. 161,256 183,370

Liabilities to suppliers of Informatika d.d. 402,356 316,999

INCOME STATEMENT:

Sales revenues of Elektro Ljubljana d.d. 11,932,769 211,717

Costs of services of Elektro Ljubljana d.d. 1,064,633 1,228,968

Costs of services and costs of electricity purchase - Elektro Ljubljana OVE d.o.o. 799,444 692,578

Costs of goods/services of Informatika d.d. 2,076,415 1,513,425

Expenses for interest and guarantee of Elektro Lj. d.d. 70,083 58,319

11. Disclosure of income received by members of the management board and employees employed on the basis of individual contracts

Gross income of the management board for the year 2013:(in EUR)

Salary Reimbursement of costs

Holiday allowance Bonuses Benefits Total

Managing Director 19,912 346 0 0 644 20,902

Legal Representative 68,479 1,310 0 0 4,032 73,821

Gross income of employees based on individual contracts for the year 2013:(in EUR)

Seq. No.: Salary Reimbursement of costs

Holiday allowance

Performance bonuses Benefits Total

7 441,474 9,131 0 5,000 16,818 472,422

The company did not record any outstanding receivables, issued sureties or liabilities to the aforementioned groups as of 31 December 2013.

12. Potential and assumed liabilities

Various claims have been filed against the company, and remain open as of 31 December 2013, however, none of the disputes in question involve significant amounts.

There is insufficient information to reasonably assess the potential outcomes of the open and filed claims, or to assess the potential cost of losses in individual lawsuits.

13. Events after the balance sheet date

After the balance sheet date until the adoption of this report confirmed by the founder at the proposal of the Managing Director on 17 April 2014, there were no other events which would affect the disclosed assets and liabilities as at the balance sheet date.

14. Auditing costs

The costs of auditing the company’s financial statements in 2013 totalled EUR 7,300 excluding VAT.

15. Relations with the controlling company and statement issued pursuant to article 545 of the companies act

In 2013, the company operated on its own behalf and its own account.

As of 1 January 2011, Elektro Ljubljana d.d. became the controlling company of Elektro energija d.o.o.

In addition to operations involving Elektro Ljubljana d.d. as the controlling company, Elektro energija d.o.o. also conducted business with other associated enterprises during 2013. The company was not deprived or impaired in the aforementioned operations. Elektro energija d.o.o. did not conclude any legal transactions in 2013, nor were any of its activities that the company would have concluded or omitted upon the initiative or in the interest of the controlling company or its associated enterprises.

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16. Performance indicators


INVESTMENT RATIOS

Fixed assets investment ratio= fixed assets (at net book value) / assets 0.01 0.01

Financial investment ratio= total long-term and short-term financial investments and investment property / assets / 0.01

long-term investment ratio= total fixed assets and long-term deferred costs and accrued revenues (at net book value), long-term financial investments, investment property and long-term operating receivables / assets 0.01 0.03

FINANCING RATIOS

Self-financing ratio= equity / liabilities 0.13 0.14

Long-term financing ratio= total equity, long-term debt and long-term provisions and long-term accrued costs and deferred revenues / liabilities 0.23 0.22

HORIZONTAL FINANCIAL STRUCTURE RATIOS

Equity to fixed assets ratio= equity / tangible fixed assets (at net book value) 11.10 10.38

Quick ratio= liquid assets / short-term liabilities 0.02 0.03

Accelerated liquidity ratio = total liquid assets and short-term receivables / short-term liabilities 1.26 1.22

Current ratio = current assets / short-term liabilities 1.26 1.22

EFFICIENCY RATIOS

Operating efficiency ratio= operating revenues / operating expenses 1.01 1.00

Overall efficiency ratio= revenues / expenses 1.01 1.00

PROFITABILITY RATIOS

Net return on assets (ROA)= net profit or loss / average assets 0.04 0.02

Net return on equity (ROE)= net profit or loss for the financial year / average equity (excluding net profit or loss for the current year) 0.60 0.16

ASSET MANAGEMENT RATIOS

Total assets turnover ratio= revenues / average assets 6.28 5.33

Receivables turnover ratio (RTR)= operating revenues / average operating receivables 6.61 5.72

Management statement

The management adopts and confirms the financial statements of Elektro energija d.o.o. and the notes to the financial statements for the year ended 31 December 2013.

The Managing Director of Elektro energija d.o.o. confirms that the financial statements have been drawn up in accordance with the appropriate accounting guidelines, the accounting estimates were drawn up pursuant to such principles as prudence and due diligence, and that the annual report presents a true and fair reflection of the results of the operations as well as the financial situation of Elektro energija d.o.o. in 2013.

The Management is responsible for the appropriate management of the accountancy, for adopting appropriate measures to protect the company’s property and other assets and for the prevention and detection of deceptive practices, and confirms that the financial statements and pertaining notes are presented on the basis of accounting assumption, which takes into consideration the principle of a going concern and have been drawn up in accordance with the applicable legislation and Slovenian Accounting Standards.

In its operations, the company respects the recommendations of the Capital Assets Management Agency of the Republic of Slovenia.

Elektro energija d.o.o. Igor Podbelšek, MSc

Ljubljana, on 17 April 2014

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Annual Report Elektro energija for the year 2013Publisher: Elektro energija d.o.o.Design: Futura DDB d.o.o.Photography: Shutterstock and archive Elektro energija d.o.o.June 2014

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