ANNUAL REPORT - HSE

The consolidated financial statements have been prepared
by observing the following qualitative characteristics
of accounting:
• understandability,
• relevance,
• reliability and
• comparability.
Companies included in the
consolidated financial statements
Prior to the consolidation of the HSE Group, a consolidation
of the Premogovnik Velenje Group was performed.
In accordance with the consecutive consolidation
method, consolidated financial statements are
already prepared at the level of subsidiaries and are
then included in the consolidated financial statements
of the HSE Group.
The 2008 consolidated financial statements included
for the first time the company HESS, to which the
capital investment in the construction of HPPs on the
lower Sava River, which had been managed as a joint
venture project until 31/12/2007, was transferred.
HESS was established in 2008, with HSE Group companies
becoming its 84.6% owners.
More detailed disclosures regarding the transfer of the
capital investment to the above company are provided
in the financial report of the controlling company.
Companies included in the consolidated financial
statements:
• Holding Slovenske elektrarne d.o.o.,
• Dravske elektrarne Maribor d.o.o.,
• Soške elektrarne Nova Gorica d.o.o.,
• Termoelektrarna Šoštanj d.o.o.,
• Premogovnik Velenje Group,
• Termoelektrarna Trbovlje d.o.o.,
• Hidroelektrarne na Spodnji Savi d.o.o.,
• HSE Invest d.o.o.,
• HSE Italia S.r.l.,
• HSE Balkan Energy d.o.o.,
• HSE Hungary Kft.,
• HSE Adria d.o.o.,
• HSE Bulgaria EOOD.
Hereinafter the term “Group” refers to HSE Group
companies that are included in the consolidated financial
statements.
Companies excluded from the
consolidated financial statements
Subsidiaries in the HSE Group: Elprom d.o.o., Golte
d.o.o., Jama Škale v zapiranju d.o.o. and SAŠA Inkubator
d.o.o. are dormant companies, and have not been
consolidated either at the level of their controlling
companies or at the Group level due to their insignificance.
These companies are not significant in terms of
true and fair presentation of the Group’s operations.
In 2007 the controlling company purchased a 100%
stake in the Bulgarian company Toplofikatsia-Ruse
AD, selling 49% of it in the same year. The company
still holds 51% of voting rights for the remaining 51%
stake, but because a higher majority is required in
order for general meeting decisions to be valid, the
company cannot make strategic decisions without the
approval of the other owner. The same decision-making
conditions also apply to the other owner. The controlling
company has already reached an agreement
with the other partner to transfer its 51% stake by the
end of 2010, meaning that the controlling company no
longer has a right to receive its share of profit. Due to
the above facts, the company Toplofikatsia-Ruse AD
has not been included in the consolidated financial
statements. Also, the equity method was not used in
connection with the above company in the consolidated
financial statements for the same reason.
Although the company DEM has a 50% interest in the
company Eldom d.o.o., the controlling company did
not consolidate Eldom due to its material insignificance
and the lack of a controlling influence on its operations.
In 2008 DEM established a private institution
called Pomurje Development Institute Murska Sobota.
This institution is not considered a company, and because
it is not significant from the perspective of the
HSE Group, it is not consolidated either at the level of
the controlling company or at the Group level.
Full consolidation
The financial statements of group companies have
been incorporated into the consolidated financial
statements on the basis of full consolidation. The
financial statements were merged item by item by
adding up similar items of assets, liabilities, equity,
revenue and expenses. In order to present the Group
as a single company, the following eliminations were
made:
ANNUAL REPORT HSE | FINANCIAL REPORT OF THE HSE GROUP
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