DRAVA, KUPA, RJE»INA, LOKVARKA, LI»ANKA LIKA, DOBRA ...

36
HEP ANNUAL REPORT 2010
CHAPTER 3 - HEP’S BUSINESS OPERATIONS IN 2010
ASSETS
The value of total assets of HEP Group in 2010 increased by 909.9 million kuna to 33.6 billion kuna. The increase
was achieved in short-term assets while long-term assets remained of approximately the same value as at the end
of 2009 due to investment in construction, replacement and reconstruction of energy plants and networks being
lower than annual value adjustment for depreciation. Long-term assets account for 89 percent of the value of the
Group’s assets.
The value of short-term assets is 3.8 billion kuna, an increase of 922.0 million kuna, with the greatest increase
in the item of cash and cash equivalents. The most significant item in short-term assets is accounts receivable amounting
to 1.7 billion kuna, which increased in 2010 due to worse payment collection. This is followed by inventories
of materials, spare parts and energy fuel which amount to 1.1 billion kuna with an increase in the value of fuel
inventories due to higher prices and quantities of oil and coal.
CAPITAL AND LIABILITIES
Capital and reserves at the end of 2010 amounted to 19.7 billion kuna with a share of 59 percent in the Group’s total
assets and an increase of 1,431.8 million kuna compared to 2009, due to the profit of the year.
The structure of liabilities did not change significantly, short-term liabilities decreased by 659.9 million kuna
compared to the beginning of the year due to which their share decreased from 14 to 12 percent. Trade payables
decreased as well as liabilities for short-term loans. Since July 2010, all GEP Group companies have settled their
trade payables by due dates.
Long-term liabilities for loans and securities decreased, but the current portion of these liabilities whose
repayment is due in 2011 increased. Long-term provisions for risks and costs increased due to provisions for legal
suits, unused annual vacations, severance payments in accordance with the Collective Agreement, damage arising
from contracts and increase in estimated costs of nuclear plant decommissioning.
Due to decrease in interest-bearing debt and increase in the value of capital and reserves, net debt to equity
ratio decreased from 32 to 24 percent.
INVESTMENTS
In 2010 the value of the investments that were made by the Group was 1,693.3 million kuna, of which the greatest
part is related to new construction and to replacement and reconstruction of existing energy facilities, plants and
networks. The remaining part is related to information technology and telecommunications infrastructure, remote
control systems, measuring devices and instruments, business premises and transport vehicles.
INVESTMENTS (HRK MN)
2008 2009 2010 10/09
Investments in property, plant and equipment 2,644.2 2,359.7 1,693.3 -28%
Construction of transmission and distribution networks makes it possible to meet continuous growth in electricity
consumption in Croatia, while replacement and reconstruction remove inefficiencies of existing plants and facilities
with the aim of improving the security and quality of electricity supply and reducing network losses. Construction
of new high-efficiency generating plants will reduce the gap between generating capability of existing plants and
growing needs for electricity. It will also allow closure of old, inefficient and therefore expensive, plants.
An overview of major investments 2010 per company is given in the section Reports by HEP Group
companies.