]> SmVak Ostrava annual report for 2021
2021 ANNUAL REPORT
pursuant to
Act No. 256/2004 Coll., on Business on the Capital Market as amended
Act No. 563/1991 Sb., on Accounting as amended
Act No. 90/2012 Coll. on Business Corporations
Severomoravské vodovody a kanalizace Ostrava a.s.
Registered office: 28. října 1235/169, Mariánské Hory, 709 00 Ostrava
The Company is entered in the public register – the Commercial Register kept
at the Regional Court in Ostrava, Section B, Entry 347.
Date of incorporation 1 May 1992
ID 45193665
Tax ID CZ45193665
Phone: 596 697 111
Fax: 596 624 205
E-mail: smvak@smvak.cz
Website:
www.smvak.cz
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CONTENTS
1. INTRODUCTION 4
2. OBJECTS OF BUSINESS 7
3. PROFILE 9
Key events in 2021 10
4. ORGANISATIONAL STRUCTURE 11
5. DEVELOPMENT OF THE COMPANY’S REGISTERED CAPITAL AND EQUITY 23
6. SECURITIES 23
7. RIGHTS ARISING FROM OWNERSHIP OF SECURITIES 25
8. MANDATORY INFORMATION PURSUANT TO THE ACT ON CAPITAL MARKET BUSINESS 26
Corporate Control Instruments 26
Company Codes 29
Compliance Programme 29
Decision-making processes and scope of powers of the General Meeting 30
9. ACCESS TO THE ANNUAL REPORT 30
10. THE CONTROLLED AND CONTROLLING PARTIES 30
11. THE BOARD OF DIRECTOR’S REPORT ON COMPANY’S BUSINESS OPERATIONS AND ASSETS 32
Key financial figures for 2021 33
Income 33
Expenses 34
Profit/loss 34
Financing 34
Organisation and human resources 36
Profit/loss. Dividend per share. 36
Anti-bribery and anti-corruption measures 36
Respect for human rights 36
Court, administrative, and arbitration proceedings 37
Proposed distribution of the Company’s accounting profit made in 2021 39
Business operations 39
Projected business development and financial position in 2022 41
12. CORE BUSINESS 42
Water resources 42
Production of drinking water 42
Operation of sewage systems 46
Investment projects and repair of tangible assets 49
13. INFORMATION TECHNOLOGIES 56
14. SUSTAINABLE DEVELOPMENT 57
Corporate Governance 57
Human Resources 57
Environment 60
Region 61
15. DECLARATION OF THE SUPERVISORY BOARD REGARDING THE FINANCIAL STATEMENTS FOR
2021, ANNUAL REPORT FOR 2021 AND THE RESULT OF THE REVIEW OF THE REPORT ON
RELATED PARTY TRANSACTIONS FOR 2021 64
16. AUDITOR’S REPORT 65
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17. POST BALANCE SHEET EVENTS 71
18. APPROVAL OF THE FINANCIAL STATEMENTS 71
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1. INTRODUCTION
Dear Shareholder, Ladies, and Gentlemen.
We hereby present a report that comprehensively documents the activities and operations
of our Company in 2021.
This was the second year affected by the coronavirus pandemics. It touched all aspects of
our professional and personal lives.
SmVaK Ostrava had to tackle the situations at operative and strategic levels every day. In
certain moments of the year, the situation was critical in many locations in the Czech
Republic. Those challenges did not affect negatively fulfilment of key goals, in particular,
thanks to the professional approach of our employees and thanks to reliability of our
suppliers.
We faced unprecedented restrictions and challenging moments. This resulted in
absolutely new situations which required a flexible approach in new, often uncharted
territories. In spite of the fact that the employees of water companies were not, unlike
health staff and other rescue team members, among those presented often in TV, radio
broadcasts or mass media, in critical pandemics moments the community would not be
able perform, if not them.
Reliable supplies of drinking water, and discharge and treatment of wastewater are
absolutely necessary so that the health system could help those who are in need. With all
due respect to those who were saving lives and cared for the ill in hospitals and
emergency centres, we launched the campaign with the motto #vodavprvnilinii (water in
the first line), drawing attention to services which are, unfortunately, taken by all people for
granted. Everyone takes for granted that the water system operates smoothly and
provides perfect services for the general public: each day, each hour, each minutes and
each second in the year. And often no attention is paid to involvement and competences
of those who are helping this to happen.
First of all, I would like to express thanks to my colleagues. It is really an honour for me to
lead the Company where all employees have managed, thanks to their skills and
involvement, to tackle all those challenging and complicated moments without any
negative impacts on our customers.
I would also like to thank to our suppliers because we could rely on them all the time.
They were reliable even during the second half of 2021, which resulted in absolutely
unexpected problems in supplier-customer chains and increases in prices.
I would like to point out that our Company has managed to supply reliably the drinking
water of top quality to all sites where we operate, and also managed to treat the
discharged waste water. The Company fulfilled its main tasks it is facing in the long term.
And it fulfilled them also in other areas, such as in human resources, investments, and
business and customer relationships.
The key driver towards success is now the speed, flexibility and ability to provide a flexible
response to new reality. We have succeeded thanks to more intensive computerisation
and launch of new IT tools, the implementation of which might, in quiet times, take
considerably more time. The new paradigm puts more pressure on removal of
unnecessary and non-productive activities, supporting, in turn, the efficiency and flexibility.
5
Despite all the difficulties, the Company managed to fulfil or exceed the planned figures in
investments where we allocated an all-time-high amount of CZK 744 million (+ CZK 51
million, if compared with 2020). In case of repairs, the increase is 11 % as we allocated
more than CZK 270.5 million. This is the first time in the history of our Company when
more than CZK 1 billion was invested into modernisation, development and repair of
Company’s assets. Our ambitions for the year 2022 are even more challenging. And this
is the answer to those who, without referring to any facts, spread in public the information
that water companies owned by foreign entities do not take care after the assets and are
indifferent to quality of customer services. Our answers are results of our work.
Our answers are opinions of those who are of key importance for successful performance
of our Company: our customers. In the autumn 2021, we have carried out, after two years,
a detailed survey into customer satisfaction, and the results were really a pleasant
surprise for us. Despite certain nervousness which was evident in the Czech Republic in
times of the pandemics, just before the parliamentary election and intense election
campaign, with the increasing inflation and weeks when prices of energy skyrocketed and
alternative energy suppliers went bankrupt, our customers spoke very highly about our
work. We really welcomed that opinion, but we cannot be complacent – this should
encourage us to work more and improve quality of our services.
From the point of view of production and supplies of drinking water, and discharge and
treatment of waste water, the second pandemics year was very much the same as the
first one. The production of drinking water went up by 0.16 million m
3
, reaching 57.5
million m
3
. We supplied 32.4 million m
3
of drinking water to our customers (0.1 million m
3
more than in 2020). Regarding the bulk water supplied to third party water companies, we
supplied 18.7 million m
3
of drinking water (0.25 million m
3
more than in 2020). We treated
27 million m
3
of wastewater – the quantity is same as in 2019, but more by 0.27 million m
3
than in 2020.
And all this was achieved in strict accordance with health protection measures in order to
minimise transmission of covid-19 among our employees.
Our sales in 2021 amounted to CZK 2.88 billion (+ CZK 208 million, if compared with
2020). The profit before taxation was CZK 565.5 million.
For many years, our Company has been closely attached to the region where it operates.
And the past two years, which were affected by the coronavirus pandemics, made the
attachment even stronger. The sense of belonging to the public, business and civic
sectors, has fundamentally helped the Company, as a whole, to manage the critical
situation.
Most events which have been supported for a long time by our Company were cancelled.
Many non-profit organisations which we support had to change their plans, cancel some
projects, and focus on other activities. They focused mostly on those in need. And our
Company became often their partner for those projects.
Even in those challenging times, we supported the non-profit organisations where our
employees are involved and helped them thanks to the donation-based programme “We
are in this together!”
And those groups of volunteers went often to help those who needed it because of
pandemics. The region can take it for granted that we will be a reliable partner for non-
profit and public sectors in the future.
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Therefore, besides our employees, whom I have already thanked above, I would like to
thank representatives of the municipalities in which we operate, state and public
administration representatives, all our suppliers, business partners, and customers for
their support in 2021. It was only thanks to the support of all involved that we managed to
successfully overcome the challenges of the past year and enter this year with a clear
vision.
Anatol Pšenička
Managing Director
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2. OBJECTS OF BUSINESS
Objects of business of Severomoravské vodovody a kanalizace Ostrava a.s.
design work for capital construction
official metering
inspections of electrical devices (according to authorisation issued by IBP Ostrava
on 25 March 1991 under Ref. 1841/10.00/91-EZ-R-S)
civil engineering construction projects, including residential compounds
business management services except for annexes to Act No. 455/91 Coll.
road traffic
water system plumbing services
metal machining
production, repair and installation of meters and gauges
production and distribution of hot water
building works in construction and repair of water supply and sewage systems
cleaning of sewage systems and sewage system connections
hazardous waste management
tax advisory, bookkeeping and maintaining of tax-related records documentation
operation of public water supply networks and sewage systems
power generation
production, trade and services not included in Annexes 1 to 3 of the Trade Licence
Act in the following areas:
operation of public water supply networks and sewage systems
waste management /excluding hazardous wastes/
testing, metering, analyses and inspections
consultancy and advisory services, preparation of expert opinions and studies
whole sale and retail
trade and service brokering
rental of other equipment and devices
automated data processing
accommodation services
lease of movable and immovable property, including services
lease of equipment and devices
provision of technical services
property broker services, property management and property maintenance
administration services and organisational and business services
research and development in the field of humanities or engineering science
storage
production, repair, and installation of meters and gauges.
During 2021, no modifications were made in the objects of business. The Company
remains engaged in its business activities within the mentioned areas.
The objects of business of the organisational branch in Poland which operated under the
trade name Severomoravské vodovody a kanalizace Ostrawa a.s., oddział w Polsce with
its registered office in Cieszyn, Bobrecka 27 and was cancelled as of 5 March 2021:
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The objects of business of the branch in Poland were identical with the objects of
business of SmVaK Ostrava in the Czech Republic which is entered in the Commercial
Register.
In addition to laws in force, the Company is governed by its Articles of Association. The
Articles of Association were deposited in the Collection of Deeds in the public Commercial
Register.
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3. PROFILE
This Annual Report includes the results of the Company which comprises:
Severomoravské vodovody a kanalizace Ostrava a.s. ("the Company" or “SmVaK”)
Severomoravské vodovody a kanalizace Ostrawa a.s., oddzial w Polsce (the
organisational branch in Poland which was cancelled as of 5 March 2021)
Severomoravské vodovody a kanalizace Ostrava a. s. is the largest water supply
company in the Moravian-Silesian region and has been among long-standing leaders in
the Czech water supply market. Its core business is production and supply of drinking
water as well as discharge and treatment of wastewater.
The Company is one of the top water management companies in the Czech Republic and
retains a strong position among major business entities in the Moravian-Silesian Region.
SmVaK Ostrava introduced the integrated management system which has been proved
by five ISO certificates.
SmVaK Ostrava operates predominantly in following districts: Frýdek-Místek, Karviná,
Nový Jičín and Opava. It is also a supplier of drinking water for Ostrava, Hlučín, Studénka
and other small municipalites. The Company also supplies drinking water to the border
area with Poland (Jastrzębie-Zdrój) and a part of the Olomouc region (Hranice na Moravě,
Lipník nad Bečvou, and Přerov). On a contractual basis, in 2021, SmVaK Ostrava
operated the sewage systems and wastewater treatment plants in Vratimov, Dolní Lutyně,
Mosty u Jablunkova, Řepiště and Velké Losiny in the Olomouc Region, but also in other
towns in the Moravian-Silesian Region.
Using more than 140,000 water connection pipes with the total length of 770 km, the
Company supplies drinking water to 714,000 people. It also operates 76 wastewater
treatment plants (74 mechanical-biological and 2 mechanical wastewater treatment
plants) with the total capacity of 263,394 m
3
per day (equivalent population: 959,523).
Since foundation of SmVaK Ostrava in 1992, when the local municipalities became the
majority shareholders, several changes have been made to the structure of Company’s
ownership. As of 20 September 2019, the sole shareholder of the Company has been
AQUALIA CZECH S.L., whose owners are FCC Aqualia, S.A with a 99.9999% ownership
interest, and Aqualia Intech, S. A with a 0.0001% ownership interest.
The Company does not hold any ownership interest in subsidiaries or any other
companies. SmVaK Ostrava is a member of the group controlled by FOMENTO DE
CONSTRUCCIONES Y CONTRATAS, S. A. with its registered office in Spain.
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Key events in 2021
The District Court in Bielsko – Biała resolved ex officio under Ref. BB.VIII NS-REJ.
KRS 4570/20/038 to dissolve without liquidation the organisational branch in Poland
that had operated under the trade name Severomoravské vodovody a kanalizace
Ostrava a. s., oddział v Polsce.
The organisational branch was deleted from the Register of Companies on 3 February
2021 and the decision on dissolution entered into force on 5 March 2021.
The sole shareholder, AQUALIA CZECH, S. L. acting in the capacity of the General
Meeting held on 7 May 2021 approved the 2020 Annual Report, the 2020 ordinary
financial statements, as well as the distribution of profit generated in the 2020 reporting
period.
The sole shareholder decided to distribute the profit made in the 2020 reporting period
as follows: CZK 283,164,872 will be taken out of the profit after tax, CZK
404,521,245.37, and will be paid to the sole shareholder as a share in profit, and the
remaining part, CZK 121,356,373.37 will be transferred onto the account for retained
profits of past years, where a part of this, CZK 104,099,887.80 will be used only for
activities specified in the renewal financing plan.
Pursuant to § 17 (1) in the Act 93/2009 Coll, the sole shareholder delegated Ernst &
Young Audit, s.r.o., residing at Na Florenci 2116/15, Nové Město, 110 00 Praha 1, ID
267 04 153, to audit the financial statements for the 2021-2023 reporting periods,
including the Annual Reports for the 2021-2023 reporting periods.
On 7 May 2021 the sole shareholder resolved to re-elect Pedro Miňarro Perete a
member of the Supervisory Board. The resolution entered into force on 26 May 2021.
On 24 June 2021 the Supervisory Board elected him by correspondence voting its
Vice-chairman.
On 7 May 2021 the sole shareholder re-elected, as of 26 May 2021, Petr Šobotník,
Otakar Hora and Renáta Hótová to be members of the Audit Committee. On 22 June
2021 the Audit Committee elected, at its meeting, Otakar Hora to be the Chairman and
Petr Šobotník to be the Vice-Chairman.
In accordance with IAS/IFRS adopted by the EU, the profit made by SmVaK Ostrava
before tax was CZK 565.489 million. The projected total expenditure for the year 2021
was based on expected needs, pricing implications and financial obligations.
In 2021 the Company’ investment policy was based on its business development
needs, in line with the approved long-term plan. The Company met investment needs
amounting to almost CZK 744 million. The Company fulfilled its aim to invest in water
management infrastructures in the municipalities of the region which is subject to the
Company’s supplies.
Pursuant to Section 19a (1) of Act No. 563/1991 Coll., the Company, in its capacity as
a business entity issuing investment securities, i.e. bonds listed on a regulated
securities market in the EU Member States, maintains its accounts and prepares its
financial statements in accordance with International Financial Reporting Standards as
adopted by the EU(see Regulation (EC) No. 1606/2002 of the European Parliament
and of the Council of 19 July 2002 on the application of International Accounting
Standards).
Throughout the year 2021 the Company had to react accordingly to the global
pandemic of the novel coronavirus across all areas of its operation. The Company was
successful in this and throughout the year, the exceptionally difficult situation did not
11
negatively affect steady supplies of drinking water in the appropriate quality and
quantity to all customers; wastewater removal and treatment were also problem-free.
4. ORGANISATIONAL STRUCTURE
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Decision-making process and members of the Company bodies
BOARD OF DIRECTORS
The decision-making process and the powers of the Board of Directors as the authorised
body are specified in the Company’s Articles of Association, Section B – Board of
Directors, Sub-sections 16 to 22.
MEMBERS OF THE BOARD OF DIRECTORS AS OF 31 DECEMBER 2021
Sub-section 17 of the Company’s Articles of Association stipulates that the Board of
Directors has 15 members.
The Company’s Board of Directors as of 31 December 2021
Félix Parra Mediavilla Chairman of the Board
Luis Francisco De Lope Alonso First Vice-Chairman
Guillermo Moya García-Renedo Second Vice-Chairman
prof. Dr. Ing. Miroslav Kyncl Third Vice-Chairman
Isidoro Antonio Marbán Fernández member
Fernando Flores Gavala member
Luis Carrero Bosch member
José María Álvarez Oblanca member
Francisco José Araque Padilla member
Mark Muller Aguirre member
Václav Holeček member
Věra Palková member
Ladislav Šincl member
Miroslav Šrámek member
Zdeněk Trejbal member
In 2021 there were not any changes among members of the Board of Directors.
Details of the Board of Directors
All members of the Board of Directors confirmed in a statutory declaration before the
election that they were qualified to be members of the Company’s authorised body and
that there were no obstacles for the performance of the office in line with applicable
regulations. During the discharge of the functions, none of the Board members
announced that they had lost the statutory competence to serve as members of the body.
Information pursuant to Section 118 (4) (f) of Act 256/2004 Coll.
Description of pecuniary income
Félix Parra Mediavilla
No income, based on remuneration waiver
Miroslav Kyncl
Compensation arising from the Board of Directors membership under
a contract approved by the Company General Meeting for the
performance of authorised body obligations
Fernando Flores Gavala
No income, based on remuneration waiver
Luis Francisco de Lope Alonso
No income, based on remuneration waiver
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Isidoro Antonio Marbán
Fernández
No income, based on remuneration waiver
Guillermo Moya García-Renedo
No income, based on remuneration waiver
Luis Carrero Bosch
No income, based on remuneration waiver
José María Álvarez Oblanca
No income, based on remuneration waiver
Věra Palková
Compensation arising from the Board of Directors membership under
a contract approved by the Company General Meeting for the
performance of authorised body obligations
Zdeněk Trejbal
Compensation arising from the Board of Directors membership under
a contract approved by the Company General Meeting for the
performance of authorised body obligations
Václav Holeček
Compensation arising from the Board of Directors membership under
a contract approved by the Company General Meeting for the
performance of authorised body obligations
Miroslav Šrámek
Compensation arising from the Board of Directors membership under
a contract approved by the Company General Meeting for the
performance of authorised body obligations
Ladislav Šincl
Compensation arising from the Board of Directors membership under
a contract approved by the Company General Meeting for the
performance of authorised body obligations
Francisco José Araque Padilla
No income, based on remuneration waiver
Mark Muller Aguirre
No income, based on remuneration waiver
Principles of remuneration
The General Meeting approves remuneration to the Board of Directors members for the
duration of their four-year term pursuant to the Agreement on the Performance of Office.
The remuneration is a fixed monthly amount, regardless of the member’s specific position
within the Board of Directors, without any variable component. The Board of Directors
members receive no other form of compensation. The Company made no agreement with
any member on the provision of any benefits upon the termination of membership in the
Board of Directors. The entire amount of compensation to the members representing the
sole shareholder is provided by the controlling party.
In 2021, the pecuniary income of the Board of Directors members totalled CZK 1.188
million (same as in the previous period). No in-kind compensation was provided.
The above-mentioned Board members receive no remuneration for the performance of
office in line with their remuneration waiver in writing.
SUPERVISORY BOARD
The decision-making process and the powers of the Supervisory Board as a controlling
body are specified in the Company’s Articles of Association, Section C – Supervisory
Board, Sub-sections 24 to 31.
MEMBERS OF THE SUPERVISORY BOARD AS OF 31 DECEMBER 2021
Pursuant to the Company’s Articles of Association, the Supervisory Board has 12
members, eight of whom are elected by the General Meeting and four by the Company’s
employees.
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Supervisory Board as of 31 December 2021
Lukáš Ženatý Chairman
Pedro Miarro Perete Vice-Chairman
Raúl Martí Segura member
Lenka Kolářová member elected by Company’s employees
Zbyněk Skyba member elected by Company’s employees
Markéta Rosmarinová member elected by Company’s employees
Roman Gúber member elected by Company’s employees
Jan Malík member
René Chrobok member
Tomáš Navrátil member
Vladimír Slivka member
Antonio Parisi member
On 7 May 2021 the sole shareholder resolved to re-elect Pedro Miňarro Perete a member
of the Supervisory Board. The resolution entered into force on 26 May 2021. On 24 June
2021 the Supervisory Board elected him by correspondence voting its Vice-Chairman.
Details of the Supervisory Board
All members of the Supervisory Board confirmed in a statutory declaration before the
election that they were qualified to be members of the Company’s body and that there
were no obstacles for the performance of the office in line with effective regulations. During
2021, none of the Supervisory Board members announced that they had lost the statutory
competence to serve as members of the body.
Information pursuant to Section 118 (4) (f) of Act 256/2004 Coll.
Description of
income in kind
Lukáš Ženatý
Jan Malík
Lenka Kolářová
Supplementary
pension insurance
under the Collective
Agreement
Roman Gúber
Supplementary
pension insurance
under the Collective
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Description of
income in kind
Agreement
Zbyněk Skyba
Supplementary
pension insurance
under the Collective
Agreement
Pedro Miñarro Perete
Raúl Martí Segura
René Chrobok
Vladimír Slivka
Markéta Rosmarinová
Supplementary
pension insurance
Antonio Parisi
Tomáš Navrátil
Principles of remuneration
The General Meeting approves remuneration to members for the duration of their four-
year term. The remuneration is a fixed monthly amount, regardless of the member’s
position within the Supervisory Board, without any variable component. The Supervisory
Board members receive no other form of compensation. The Company made no
16
agreement with any member on the provision of any benefits upon the termination of
membership in the Supervisory Board.
In 2021, the pecuniary income of the Company’s Supervisory Board members who are not
employed at the Company totalled CZK 0.924 million (CZK 0.924 million in 2020).
The pecuniary income of the Company’s Supervisory Board members – Company
employees in 2021 were as follows:
Employment income (Company employees) – CZK 5.023 million (CZK 5.057 million
in 2020); and
Income from holding the position of a member of the Supervisory Board – CZK
0.66 million (also CZK 0.66 million in 2020).
Total in-kind and other compensation in connection with employment income in 2021
amounted to CZK 0.272 million (CZK 0.221 million in 2020).
Audit Committee
The Audit Committee was established by a change in the Articles of Association as
another body of the Company based on a decision of the General Meeting held on 25 May
2017 subsequent to Section 44 (12) of Act No. 93/2009 Coll., as amended. The status,
authority and decision making of the Audit Committee are specified in the Company’s
Articles of Association, Section D, Sub-sections 32 to 35.
Composition of the Audit Committee as of 31 December 2021
Pursuant to Article 33 of the Articles of Association, the Audit Committee has three
members: Otakar Hora, Chairman of the Committee
Petr Šobotník, Vice-Chairman of the Committee
Renáta Hótová, member of the Committee
On 7 May 2021 the sole shareholder re-elected, as of 26 May 2021, Petr Šobotník, Otakar
Hora and Renáta Hótová to be members of the Audit Committee. On 22 June 2021 the
Audit Committee elected, at its meeting, Otakar Hora to be the Chairman and Petr
Šobotník to be the Vice-Chairman.
Information on the members of the Audit Committee is available at the Company’s website
www.smvak.cz under ‘Bodies of the Company’.
In 2021, the pecuniary income of the Company’s Audit Committee members amounted to
CZK 0.396 million (CZK 0.396 million in 2020).
Information about persons responsible for the Annual Report and Financial
Statement Audit
Name and surname
Position
Employer
Anatol Pšenička
Managing Director
Severomoravské vodovody a kanalizace Ostrava a.s.,
28. října 1235/169, Mariánské Hory, 709 00 Ostrava
17
Halina Studničková
Chief Finance Officer
Severomoravské vodovody a kanalizace Ostrava a.s.,
28. října 1235/169, Mariánské Hory, 709 00 Ostrava
Martin Veselý
Technical Director
Severomoravské vodovody a kanalizace Ostrava a.s.,
28. října 1235/169, Mariánské Hory, 709 00 Ostrava
Milan Koníř
Director of Water Supply Networks
Severomoravské vodovody a kanalizace Ostrava a.s.,
28. října 1235/169, Mariánské Hory, 709 00 Ostrava
Jan Tlolka
Director of Sewage Systems
Severomoravské vodovody a kanalizace Ostrava a.s.,
28. října 1235/169, Mariánské Hory, 709 00 Ostrava
Jiří Komínek
Director of Ostrava Area Water Supply Network
Severomoravské vodovody a kanalizace Ostrava a.s.,
28. října 1235/169, Mariánské Hory, 709 00 Ostrava
Petr Šváb
Administration Director
Severomoravské vodovody a kanalizace Ostrava a.s.,
28. října 1235/169, Mariánské Hory, 709 00 Ostrava
18
Company’s managers and executives
Information pursuant to Section 118 (4) (f) and (h) of Act 256/2004 Coll.
Description of
responsibilities
Description of
pecuniary income
Description of
income in kind
Anatol
Pšenička,
Managing
Director
Ensures execution of
the Company bodies’
resolutions;
Acts on behalf of the
Company within the
scope of the written
authorisation granted
by the Board of
Directors;
Acts on behalf of the
Company within the
scope of management
of Company’s activities;
Is in charge of the
Company’s crisis
management;
Represents the
Company’s
management for the
integrated management
system;
Organises the
Company’s relations
with the public; and
Is responsible for the
provision of legal
services in the
Company.
Salary paid under the
Agreement on the
Appointment of the
Managing
Director(basic salary,
bonuses,
compensation under
the Collective
Agreement)
Company car for
personal use
Halina
Studničková,
Chief Financial
Officer
Is responsible for the
effectiveness of
economic and financial
transactions, drafting of
the Company’s
economic and financial
plan and ensuring that
its targets are met;
Ensures ongoing
financial management;
Is in charge of
Company business
operations and devising
marketing strategy;
Is responsible for
pricing policy; and
Acts on the Company’s
behalf within the scope
of written authorisation
by the Board of
Directors
Salary paid under the
Wage Contract (basic
salary, bonuses,
compensation under
the Collective
Agreement)
Supplementary
pension, company car
for personal use
19
Description of
responsibilities
Description of
pecuniary income
Description of
income in kind
Martin Veselý,
Technical
Director
Ensures drafting of
technology strategy;
Is responsible for
preparation and
effectiveness of the
Company’s investment
projects;
Ensures meeting
corporate energy and
transport related
targets;
Is in charge of
occupational health
and safety and fire
protection policies; and
Is responsible for the
central procurement
system.
Salary paid under the
Wage Contract (basic
salary, bonuses,
compensation under
the Collective
Agreement)
Supplementary
pension,
company car for
personal use
Petr Šváb,
Administration
Director
Is responsible for
meeting the Company’s
reporting obligations, as
securities issuer,
ensuing from generally
binding regulations and
internal rules;
Ensures archive
activities across the
Company;
Is in charge of human
resources, payroll policy
and payroll agenda; and
Is responsible for IT
operation and
development.
Salary paid under the
Wage Contract (basic
salary, bonuses,
compensation under
the Collective
Agreement)
Supplementary
pension,
company car for
personal use
Milan Koníř,
Director of
Water Supply
Networks
Is responsible for all
water supply networks
operations;
Is responsible for
uninterrupted drinking
water supply;
Is responsible for the
quality of supplied water
and the quality control of
supplied water;
Is in charge of contacts
with municipalities in
water supply operations;
Is in charge of
metrology within the
scope of water supply;
and
Salary paid under the
Wage Contract (basic
salary, bonuses,
compensation under
the Collective
Agreement)
Supplementary
pension,
company car for
personal use
20
Description of
responsibilities
Description of
pecuniary income
Description of
income in kind
Acts on behalf of the
Company within the
scope of the written
authorisation granted
by the Board of
Directors.
Jan Tlolka,
Director of
Sewage
Systems
Is responsible for all
sewage networks
operations;
Is responsible for
wastewater drainage
and treatment;
Is responsible for the
quality of discharged
wastewater and quality
control of discharged
wastewater;
Is in charge of waste
management across
the Company; Is in
charge of metrology
within the scope of
wastewater drainage
and treatment; and
Acts on behalf of the
Company within the
scope of the written
authorisation granted
by the Board of
Directors.
Salary paid under the
Wage Contract (basic
salary, bonuses,
compensation under
the Collective
Agreement)
Supplementary
pension,
company car for
personal use
Jiří Komínek,
Director of
Ostrava Area
Water Supply
Network
Is in charge of OOV
management and all
operations;
Is responsible for
drinking water
production in water
treatment plants and
water sources across
the Company;
Is responsible for the
quality of water
supplied from water
treatment plants, water
sources and water
supply networks and
for quality control of
supplied water;
Is responsible for
uninterrupted drinking
water supply within the
Ostrava Area Water
Salary paid under the
Wage Contract (basic
salary, bonuses,
compensation under
the Collective
Agreement)
Supplementary
pension,
company car for
personal use
21
Description of
responsibilities
Description of
pecuniary income
Description of
income in kind
Supply Networks; and
Is responsible for
metrology within the
scope of water
treatment operations.
Principles of remuneration
The Company’s managers with managing powers (hereinafter the “managers”) are paid a
fixed basic salary and a variable component (bonuses) on the basis of their Wage
Contract.
For the Managing Director, the amount of the monthly salary is determined by the
Company’s Board of Directors, and for other top managers by the Managing Director,
based on an authorisation issued by the Board of Directors.
The managers’ bonuses are variable, depending on whether the managers meet pre-
defined criteria. Entitlement for bonuses and their payment depend on meeting the criteria
set for individual managers.
The key criteria for bonus payments are:
The total volume of the Company’s operational production;
Operating profit before taxes, without extraordinary gains;
Available cash-flow;
Compliance with the Company’s investment plan;
Acquisition activities of the Company.
The amount of approved bonuses is based on evaluation of meeting the required criteria
as follows:
No bonus is paid when less than 90 percent of the criteria are met;
The bonus is reduced when the criteria are met at 90-100 %, based on the evaluation
of meeting each specific criterion.
The Board of Directors assesses meeting the pre-defined criteria by the Managing
Director, and the Managing Directors assesses meeting the criteria by other managers,
based on an authorisation of the Board of Directors.
No Remuneration Committee has been set up by the Company. Wages are monitored
and evaluated for each calendar year.
Bonus payments (money transfers) are subject to approval by the Company’s Chief
Finance Officer and Managing Director.
In case of termination of the manager’s employment, a competition clause has been
signed pursuant to Section 310 of the Labour Code for one year, which guarantees
severance pay of the employee’s 12 average salaries provided the terms of the
competition clause have been met.
In 2021 the pecuniary income of managers totalled CZK 17.899 million (CZK 15.599
million in 2020); total in-kind and other compensation amounted to CZK 0.865 million
(CZK 0.82 million in 2020).
Information pursuant to Section 118 (4) (g) of Act No. 256/2004 Coll., on the
Company’s shares or similar types of securities and option or comparable
22
investment instruments, the value of which pertains to the Company’s shares or
similar types of securities in the ownership of members of the Board of Directors
and/or the Supervisory Board members and other Company managers and
executives as of 31 December 2021.
Number of
the
Company’s
shares or
similar types
of securities
as of 1
January
2021
Number of the
Company’s
shares or
similar types
of securities
as of 31
December
2021
Option or
comparable
investment
instruments, the
value of which
pertains to the
Company’s shares
or similar types of
securities
Board of Directors members in
total
0
0
None
Supervisory Board members in
total
0
0
None
Company managers and
executives
0
0
None:
23
5. DEVELOPMENT OF THE COMPANY’S REGISTERED CAPITAL AND EQUITY
Indicator
UNIT
2019
2020
2021
ISIN No.
1. Registered capital
CZK
thousand
1,296,909
1,296,909
1,296,909
-
Total shares
piece
3,458,425
3,458,425
3,458,425
-
of which the bearer
shares
piece
421,385
421,385
421,385
CS0008435251
of which the
registered shares
piece
3,037,040
3,037,040
3,037,040
CS0009031166
2. Reserves
CZK
thousand
0
0
0
-
3. Retained profit
CZK
thousand
518,770
635,405
806,900
-
EQUITY
CZK
thousand
1,815,679
1,932,314
2,103,809
-
6. SECURITIES
Securities issued
a) Stock
Issuer: Severomoravské vodovody a kanalizace Ostrava a.s.
Type of security: Shares
Class: Registered shares
Total amount: CZK 1,138,890,000
Number of shares: 3,037,040 shares
Nominal value per share: CZK 375
Form: Book-entered, records of holders are maintained
by Centrální depozitář cenných papírů, a.s. (Central
Depository of Securities)
ISIN: CS 0009031166
Issuer: Severomoravské vodovody a kanalizace Ostrava a.s.
Type of security: Shares
Class: Bearer shares
Total amount: CZK 158,019,375
Number of shares: 421,385 shares
Nominal value per share: CZK 375
Form: Book-entered, records of holders are maintained
by Centrální depozitář cenných papírů, a.s. (Central
Depository of Securities)
ISIN: CS 0008435251
On 23 July 2019 the General Meeting resolved pursuant to § 375 et seq. in the Act on
Business Corporations on the forced transfer of ownership rights to all participating
securities to the main shareholder, and the shares were removed from trading on the
multilateral trading system, RM-SYSTÉM, česká burza cenných papírů a.s. (Czech Stock
Exchange) effective from 20 September 2019, based on the decision of the director of
RM-SYSTÉM No. 8/2019 of 28 August 2019.
24
Dividend payments:
Payments of dividends in previous years were effected under the rules passed by the
respective General Meeting’s resolution through the banker Československá obchodní
banka, a.s., Radlická 333/150, 150 57 Praha 5.
Instructions for exercising of shareholders’ rights:
Until 20 September 2019, all information pertaining to securities issued by the Company
were published pursuant to its Articles of Association and the applicable legislation in the
Commercial Register, in the Commercial Bulletin and on the website www.smvak.cz in
section Shareholders and Investors/Published Documents and Notices and Calls.
Shareholders holding at least a 5% interest in the Issuer’s registered capital or voting
rights as of 31 December 2021:
AQUALIA CZECH S.L.
100.00 %
Madrid, Avda. del Camino de Santiago 40
Kingdom of Spain
The Company’s shares are fully transferable and bear no first option.
b) Bonds issued on 17 July 2015 maturing on 17 July 2022
Issuer: Severomoravské vodovody a kanalizace Ostrava a.s.
Type of security: Bonds
Class: Book-entered bearer securities
Total amount: CZK 5,400,000,000
Number of bonds: 1,800
Nominal value: CZK 3,000,000
Fixed interest yield: 2.625 % p. a.
Date of issue: 17. July 2015
ISIN: CZ 0003512824
The bond issue was approved by the Board of Directors in its resolution on 21 April 2015.
The Company issued the bonds in the aggregate nominal amount of CZK 5,400,000,000
(in words: five billion four hundred million Czech crowns) with a fixed interest rate: 2.625%
p.a. The bonds mature in 2022. The issuer’s prospectus and the terms and conditions of
the issue were approved by Česká národní banka on 14 July 2015 under ref. No.
2015/078294/CNB/570.
The issuer’s prospectus is available at www.smvak.cz in section “Shareholders and
Investors/Bonds”.
As of 17 July 2015 the issued bonds were accepted for trading on the regulated market
based on the decision made by the Managing Director of Burza cenných papírů Praha,
a.s. on 13 July 2015 under Ref. No. B/102/2015/KB. The bonds began to be traded on 17
July 2015, when all of 1,800 bonds were sold.
25
Bond holders as of 31 December 2021:
Number of bonds held by foreign corporate entities
34
Number of bonds held by Czech corporate entities (CZ)
1,660
Number of bonds held by individuals (CZ)
106
Bonds in total
1,800
All facts relating to the securities are available at the Company’s registered office.
The services of a fiscal and payment broker with respect to the payment of interest and
bonds are provided by Komerční banka, a.s. with the registered office in Praha 1, Na
Příkopě 33, 114 07 Praha 1, P. O. BOX 839, Czech Republic.
Information on the trade in shares or similar securities pertaining to the Company
conducted in 2021
In 2021, members of the Board of Directors or the Supervisory Board, the Company’s
managers and their close relatives did not trade any shares or similar securities pertaining
to the Company. Due to the decision of the General Meeting on the forced transfer of all
shares to the majority shareholder, the ownership rights to shares of members of the
Supervisory Board were transferred.
Members of the Board of Directors or the Supervisory Board and the Company’s
managers received no loans or borrowings, nor did they receive any liability, collateral or
performance. The Company’s employees do not have an opportunity to hold a share in
the Company’s registered capital.
The Company did not conclude any contracts with the members of the Board of Directors
or the Supervisory Board, the managers or their close relatives.
Costs of remuneration of the statutory auditor for the relevant period
In CZK ,000
Auditor
Amount included in
audit costs for 2021
Other
services
Other services - description
Deloitte Audit s.r.o.
4
Deloitte Advisory s.r.o.
254
Insolvency test
Ernst & Young Audit,
s.r.o.
1,296
7. RIGHTS ARISING FROM OWNERSHIP OF SECURITIES
Rights arising from ownership of shares
The shareholders’ rights are governed by Act No. 90/2012 Coll., on Business
Corporations, and by the Company’s Articles of Association.
Rights arising from the ownership of bonds
The bond holders’ rights are governed by generally binding regulations, namely the Act on
Business Corporations; Act No. 190/2004 Coll., on Bonds; the terms and conditions of
26
bond issue; and the Issuer’s Offering Circular, which is published on the website
www.smvak.cz under ‘Shareholders and Investors/Bonds’.
8. MANDATORY INFORMATION PURSUANT TO THE ACT ON CAPITAL MARKET
BUSINESS
Corporate Control Instruments
CONTROL PROCEDURES AND AUTHORISATION FOR ACCOUNTING
TRANSACTIONS
Pursuant to the provisions of the Accounting Act, separate methodology guidelines, which
are part of the ISO standardisation, define specific positions and persons responsible for
accounting transactions, persons responsible for their recognition, as well as the payment
terms applied.
Payments arising from all accounting documents and their recognition may be approved
and signed solely by persons responsible for specific accounting transactions and persons
responsible for recognition of the specific accounting transactions.
a) Employees authorised to approve financial transactions in accounting
documents are responsible for:
Accuracy, admissibility and efficiency of recognised financial transactions;
Ensuring control as regards compliance of the data reported in accounting
documentation with actual data;
Correctness, accuracy and completeness (including numerical control) of the
financial amounts recognised above;
Adherence to financial limits determined for respective authorised persons;
Observing the premise that the limited value of a financial transaction means the
sum of all values of specific items that are mutually inter-connected in terms of
purpose, contents or personnel.
The authorised employee approves financial transactions by his/her signature which must
be identical with the signature specimen. During DMS implementation, the system for
electronic circulation of accounting documents and vouchers is being introduced.
Transactions in DMS are approved in the digital environment which exists in Mail Registry
and Economic Information System.
b) Employees authorised to approve recognition of financial transactions within the
Company hold the following positions:
- Head of the Accounting Department and
- General accountant.
The employees authorised to approve the recognition of financial and accounting
transactions are responsible for the following:
Accounting records comply with the chart of accounts, approved recognition
procedures and the valid accounting plan;
Accounting documentation meets all requirements pursuant to Act No. 563/1991
Coll., in the case of tax documents also the requirements pursuant to Act No.
235/2004 Coll. On Value-Added Tax, as amended;
27
Financial transactions reported in the accounting documents have been duly
approved by the authorised employees;
In terms of recognition approval, each accounting document must include two
signatures of persons authorised to approve recognition of financial transactions.
Circulation of all accounting documents is ensured to maintain a steady flow of all
documents (from issuance, approval and payment to recognition) in a rational and
continuous manner and within reasonable deadlines.
The Company has appointed and authorised employees responsible for reviewing
accuracy, completeness, admissibility and legitimacy of financial transactions and persons
authorised to approve these transactions. Their powers are defined in accordance with the
amounts/prices determined for specific (separate) financial transactions. For transactions
under CZK 3 million incl. VAT, three authorised employees jointly approve any such
transaction; for transactions between CZK 3 million and CZK 27 million incl. VAT, three
authorised employees and three authorised members of the Company’s body (Board of
Directors) jointly approve any such transaction. For transactions exceeding CZK 27 million
incl. VAT, three authorised employees and five authorised members of the Company’s
body (Board of Directors) jointly approve any such transaction.
Entering into supply contracts and ordering material and services is performed within the
scope of authorisations granted by the Company’s Board of Directors to senior managers
and authorisations arising from the Company’s internal policies.
INTERNAL AUDIT
Internal audit within the integrated management system involves an ongoing and
systematic review and evaluation of operations of internal organisational units in the areas
of quality, energy management, environment, occupational health and safety and fire
protection management. Records of internal audits are submitted to the Company’s
management team. The purpose is to check compliance with occupational safety and
work rules by employees as well as compliance with internal regulations and documents.
Random workplace inspections, reviews of internal accounting records, and reviews of
activity progress are also conducted.
Inspection reports are assessed by the Managing Director. Results and findings from
internal audits are communicated to members of the Audit Committee.
PAYMENT CONTROL
The Company ensures control of all payments executed by authorised employees within
the Economic Information System (EIS) in terms of the legitimacy of specific financial
transactions and the amount of payment.
The employees executing payments print out a list of payment orders from EIS, review and
sign it together with respective tax documents (invoices). They submit the payment orders
for review to the authorised employee of the finance department, who checks the data for
reconciliation and verifies it by signing the accuracy of the issued payment orders. A
protocol is prepared on the required payments.
Prior to the execution of payments, a Protocol for Approval of the Financial Transaction is
prepared and subsequently submitted for a review and approval to the authorised
employees who permit the execution of the payments by signing the Protocol. After
sending the payment orders to the respective bank, the authorised employee signs a
control protocol that is filed with a control copy for a compatible medium, a dispatch label
28
for non-document exchange of data carriers, a protocol on successful completion of data
transfer, and a list of payment orders.
ELIMINATION OF POTENTIAL RISKS
The detailed business and financial plan for the current year includes identification of
potential risks and their elimination in the given environment. The Company effectively
eliminates all risks.
PAYROLL CONTROL MANAGEMENT
Access to the payroll and personnel files is granted by the system administrator, following
a consultation with the head of the Human Resources and Payroll department, and
approval by the Administration Director. The payroll system can be accessed by Human
Resources Payroll officers processing the payroll agenda, the head of the Human
Resources and Payroll department and the Administration Director.
All wage modifications are subject to the approval of the Managing Director. Payroll
outputs are subject to inspection by the heads of the Human Resources department and
the Administrative Director and, subsequently, approved by the Chief Finance Officer and
the Managing Director.
THE SOLE SHAREHOLDER’S CONTROL
The Company’s sole shareholder is AQUALIA CZECH S.L., which holds 100.00% of
share capital and is the entity directly controlling Severomoravské vodovody a kanalizace
Ostrava a.s.
FCC Aqualia S. A. holds 99.9999% of the share capital of AQUALIA CZECH S.L., an
interest of 0.0001% is held by Aqualia Intech S.A.
All of the aforementioned companies are part of the Group controlled by FOMENTO DE
CONSTRUCCIONES Y CONTRATAS, S.A., with its registered office in Balmes 36,
Barcelona, Kingdom of Spain.
More detailed information on the controlled and controlling entities is provided in this
Annual Report. The overview of the Group’s controlled and controlling entities is included
in the Appendix thereto entitled the “Report on Related Party Transactions pursuant to
Section 82 of the Business Corporations Act”.
The sole shareholder (the controlling party) controls, through its representatives – i.e. the
members of the Board of Directors, the annual business plan and monthly economic
results, sets and reviews business goals and objectives that are assessed on an ongoing
basis and discussed in the event of any discrepancies. In addition, the sole shareholder
reviews and approves meeting the targets of the investment plan.
The Company has drafted in-house rules which set forth clearly defined procedures and
control mechanisms. These are primarily methodological regulations in the ISO
documentation system, which in detail describe procedures of processing common
transactions, including fraud prevention rules. The Company’s internal audit controls
adherence to the relevant rules. The majority shareholder in no way influences or
interferes with the Company’s internal policies.
No other measures beyond the scope of the statutory obligations have been adopted.
29
Company Codes
The Company publicly complies with and performs its activity in line with the Czech
Corporate Governance Code 2018 (the “Code”) based on the OECD Principles. It fully
complies with its principles in order to improve its governance, corporate responsibility and
long-term prosperity, increase its value, competitiveness and sustainability of its activities.
The Company makes sure that its governance is transparent. To this purpose, it publishes
all relevant information regarding its activities and governance in its annual and semi-
annual reports. The main features of the Company’s system of internal controls and risk
management in relation to financial reporting are disclosed in subchapter Corporate
Control Instruments of this Annual Report.
Responsibilities of the Board of Directors and the Supervisory Board to the sole
shareholder and to third parties are in compliance with Chapter 5 and 6 of the Code, the
Articles of Association and applicable legislation.
Members of the Board of Directors and the Supervisory Board are able to exercise
objective independent judgment on corporate affairs and they have access to accurate,
relevant and timely information in order to ensure due performance of duties. The
composition of corporate bodies of the Company is disclosed in Chapter 4 of this Annual
Report. The composition of elected bodies reflects the requirements put on the Company
with regard to its business activities and its further development.
For the entire time when the Company had more than one shareholder, the governance
system protected and facilitated the exercise of shareholders’ rights in a way that ensured
equal rights for all shareholders, including minority ones, with the possibility to participate
in the management of the Company through the General Meeting. Shareholders’ rights in
the Company were exercised within the scope of Chapter 1 of the Code. Presently, when
the Company has a sole shareholder, the framework for the exercise of the shareholder’s
rights is defined by both applicable legislation and the Company’s Articles of Association.
The Company is in full compliance with the Code of Conduct of the FCC Group, of which it
forms part, and has implemented the Code into its corporate management system. The full
wording of the Code of Conduct is available on the Company’s Intranet and website.
Compliance Programme
During 2020, a corporate compliance programme was implemented and developed in the
FCC Group. In 2021, development of the programme continued. The programme
introduces a comprehensive system of measures and procedures relating to all activities of
all entities in the Group. The compliance programme aims at setting internal operating
rules in both the parent company of the FCC Group and its subsidiaries and affiliates. The
aim is to define rules of conduct in relation to third parties and introduce a corporate
culture across all aspects of the operations of individual entities.
When introducing the compliance programme, an analysis of the activities performed in
the Company was conducted in order to identify risks and their consequences for the
Company with regard to the prevention of possible criminal liability of the Company. At the
same time, the applicability of the FCC Group’s anti-corruption system in the Company
was tested. No deficiencies were found in the conducted risk analysis that would pose a
risk to the Company in terms of potential criminal liability.
In relation to the implementation of the FCC Group’s compliance programme, the Board of
Directors of the Company approved the Anti Corruption Control Matrix which is a part of
30
the Compliance Management System. Following policies were updated: FCC Code of
Ethics, Anti-Corruption Policy, Manual on Criminal Liability Prevention, Protocol on
Preventing and Combating Harassment, Human Rights Protection Policy, Gift Acceptance
Policy, Commercial Agents Relationships Policy, Policy of Participation in Tenders for the
Supply of Goods and Services, and Policy of Business Partner Relations in connection
with Compliance.
Updated were also made in documents describing whistle-blower processes, suggestion
management rules and rules governing the work of the Compliance Committee in FCC
Group. The documents above are based on the FCC Code of Ethics, give more details
and focus on specific aspects. The documents are available on the Company’s intranet
and available for consultation in locations accessible to all Company’s employees.
Decision-making processes and scope of powers of the General Meeting
The status and power of the General Meeting are defined in Section A – General Meeting
in the Company’s Articles of Associations.
Starting from 20 September 2019, when the forced transfer of all shares to the sole
shareholder became effective, the powers of the General Meeting are exercised by the
sole shareholder.
9. ACCESS TO THE ANNUAL REPORT
1. The Company’s Annual Report for 2021 is available both in paper form and on a USB
stick to be distributed free of charge and available from 30 April 2022 at the
Company’s registered office on business days from 9:00 a.m. to 3:00 p.m. In addition,
the Annual Report can be accessed at the registered offices of all parties that are
recipients of the Annual Report pursuant to Act No. 256/2004 Coll., i.e. Česká národní
banka a.s. (Czech National Bank), Burza cenných papírů Praha (Prague Stock
Exchange), and ING Bank N.V., organizační složka.
2. As of 29 April 2022, the Annual Report will be also posted as pdf on www.smvak.cz in
the section Shareholders and Investors/ Published documents.
10. THE CONTROLLED AND CONTROLLING PARTIES
The overview below shows the controlled and controlling parties within the FCC Group as
of 31 December 2021.
1. Controlled party
Severomoravské vodovody a kanalizace Ostrava a. s.
Registered office: 28. října 1235/169, Mariánské Hory, 709 00 Ostrava
ID: 45193665
The company is registered in the Commercial Register kept at the Regional Court
of Ostrava, Section B, Entry 347.
2. Ultimate controlling party of the Group
Fomento de Construcciones y Contratas, S. A.
Registered office: Barcelona, Balmes 36
ID: A-28037224
The company is registered in the Commercial Register kept in Barcelona, Section
21.736, File 1, Page B-26.947.
31
The company is not registered in the Commercial Register kept in the Czech
Republic.
3. Directly controlling party
AQUALIA CZECH S.L.
Registered office: Madrid, Avda. del Camino de Santiago 40, Kingdom of Spain
ID: B-85794931
The company is registered in the Commercial Register kept in Madrid on the page
M-488820.
The company is not registered in the Commercial Register kept in the Czech
Republic.
4. Other parties in the Group with which the controlled party had contractual
relationships or performed legal acts
4.1. Aqualia infraestructuras inženýring, s. r. o.
Registered office: Slavníkovců 571/21, Mariánské Hory,709 00 Ostrava
ID: 64608042
The company is registered in the Commercial Register kept at the Regional Court
of Ostrava, Section C, Entry 14055.
4.2. Vodotech, spol. s r.o.
Registered office: Jaselská 220/47, Předměstí, 747 07 Opava
ID: 64086348
The company is registered in the Commercial Register kept at the Regional Court
of Ostrava, Section C, Entry 8486.
4.3. Aqualia Intech, S. A.
Registered office: Madrid, Avda. del Camino de Santiago 40, Kingdom of Spain
ID: A–28849495
The company is registered in the Commercial Register kept in Madrid on the page
M-59467.
The company is not registered in the Commercial Register kept in the Czech
Republic.
4.4. Tratamiento industrial de aguas, S. A.
Registered office: Madrid, Federico Salmon 13, Kingdom of Spain
ID: A–28525723
The company is registered in the Commercial Register kept in Madrid on the page
M-20467.
4.5. FCC AQUALIA, S. A.
Registered office: Madrid, Federico Salmon 13, Kingdom of Spain
The company is registered in the Commercial Register kept in Madrid on the page
M-58878.
The organisational branch of the foreign legal entity is recorded in the Commercial
Register kept by the Municipal Court in Prague, Section A, Entry 69960 under the
name FCC AQUALIA, S.A., organizační složka v České republice, ID: 27788318.
4.6. FCC Česká republika, s.r.o.
Registered office: Ďáblická 791/89, Ďáblice, 182 00 Praha 8
32
ID: 45809712
The company is registered in the Commercial Register kept at the Municipal Court
of Prague, Section B, Entry 12401.
4.7. OBSED a. s.
Registered office: Nemocniční 998/14, Moravská Ostrava, 702 00 Ostrava
ID: 27454045
The company is registered in the Commercial Register kept at the Regional Court of
Ostrava, Section B, Entry 3265.
4.8. HIDROTEC, Tecnología del Agua, S. L. U.
Registered office: Sevilla, c. Kansas City 9, Kingdom of Spain
ID: B–91033621
The company is registered in the Register of Companies kept in Sevilla, sheet SE
395, section 8 folio 71. The company is not registered in the Commercial Register in
the Czech Republic.
The Report on Related Party Transactions specifies all members of the Group with which
the controlled party had contractual relations or with which legal acts were performed in
the reporting period beginning 1 January 2021 and ending 31 December 2021.
The Report on Related Party Transactions between the Controlling Party and the
Controlled Parties and between the Controlled Parties and other Parties Controlled by the
Same Controlling Party for the reporting period beginning 1 January 2021 and ending 31
December 2021, prepared pursuant to Section 82 of Act No. 90/2012 Coll., on Business
Corporations, is an integral part of this Annual Report.
The Company declares that it conducts its business operations independently of the other
Group companies as its activities are not dependent on any other Group member.
Severomoravské vodovody a kanalizace Ostrava a.s. is the Controlled Party. It is directly
controlled by the Controlling Party, particularly through decisions of the sole shareholder
acting in the capacity of the General Meeting as part of business management through the
representatives of the sole shareholder in the Board of Directors and executive
management.
The Company is not a Controlling Party or a partner in any other company which is a part
of FCC Group.
The level of the Company’s compliance with selected chapters of the Code of Corporate
Governance, based on the OECD Principles, is subject to regular analyses; application of
the principles to the Company’s specific conditions is included in the documents related to
the preparation of the annual Financial Statements and the 2021 Annual Report.
The Company is not aware of any risk factors arising from its dominant market position in
the regions of its operation.
11. THE BOARD OF DIRECTOR’S REPORT ON COMPANY’S BUSINESS
OPERATIONS AND ASSETS
All figures disclosed in this report comply with International Financial Reporting Standards
IAS/IFRS (hereinafter “IFRS”), as adopted by the EU.
33
Key financial figures for 2021
Severomoravské vodovody a kanalizace Ostrava a.s. generated profit before taxes
of CZK 565.489 million in 2021.
In 2020, water deliveries to water supply systems of third-party water companies
increased slightly by 1.4 % year-on-year, which represents an increase in 250,000
m
3
against the previous year.
Drinking water delivered to households and businesses in 2021 increased by 0.3 %
year-on-year, which represents 100,000 m
3
against 2020.
The volume of drained wastewater (including the billed rainawter) recorded a minor
increase of 1% compared to the volume in 2020.
Supplies of drinking water from central and local sources were uninterrupted
throughout 2021 and so was the drainage and treatment of wastewater.
The total income from water tariff and sewage charges amounted to CZK 2,723.915
million which is CZK 152.478 million more than in 2020.
The Company’s overall financial performance in 2021 can be described as
favourable, despite the society-wide situation caused by the novel coronavirus. The
total volume of drinking water sold to final consumers amounted to 32.404 million
m³, and the volume of drained wastewater for consideration totalled 26.994 million
m³. A total of 14.498 million m³ of drinking water was delivered to the systems of
Czech water management companies, and 4.213 million m³ was delivered to water
supply systems in Poland.
In compliance with applicable legislation and IAS/IFRS as adopted by the EU, the
Company’s asset stock-taking included special procedures to apply the respective
standards (hereinafter “IAS”) to the Company’s specific conditions (refer to the
Notes to the annual financial statements).
Income
In 2021, the total income from water tariffs and sewage charges amounted to CZK
2,876.401 million which is CZK 208.208 million more than in 2020.
Development of income in CZK ,000
Indicator
2019
2020
2021
Income from water tariffs and sewage
charges
2,503,692
2,571,437
2,723,915
Other operating income
101,680
96,104
151,798
Interest and other financial income
1,103
652
688
Total income
2,606,475
2,668,193
2,876,401
Profit before taxes
473,934
501,352
565,489
Profit after taxes
379,496
404,521
454,660
Key business operations
Indicator
2019
2020
2021
Billed water (thousand m
3
)
33,269
32,304
32,404
Bulk water (thousand m
3
)
20,257
18,461
18,711
Discharged wastewater (thousand m
3
)
26,993
26,721
26,994
4.213 million m
3
of water was supplied to consumers outside the territory of the Czech
Republic. The volume of water supplied to Ostravské vodárny a kanalizace a.s. amounted
34
to 9.854 million m
3
, and 2.05 million m
3
of drinking water was supplied to Vodovody a
kanalizace Přerov a.s.
Other third party consumers were delivered 2.594 million m
3
of drinking water,
Expenses
The total recognised expenses including taxes amounted to CZK 2,421.741 million in
2021.
Expenses in CZK ,000
Indicator
2019
2020
2021
Consumption of materials and energies
497,298
494,654
534,158
Personnel costs
508,058
531,486
557,041
Depreciation
509,661
443,652
463,220
Other operating expenses
472,367
515,920
602,341
Increase/decrease in reserves and
adjusting entries – net value
-18,921
15,993
-10,829
Interests and other financial expense
164,078
165,136
164,981
Income tax
94,438
96,831
110,829
Expenses in total
2,226,979
2,263,672
2,421,741
Profit/loss
Profit before tax
Year 2019
Year 2020
Year 2021
CZK 473,934 thousand
CZK 501,352 thousand
CZK 565,489 thousand
Profit after due income tax and deferred income tax
Year 2019
Year 2020
Year 2021
CZK 379,496 thousand
CZK 404,521 thousand
CZK 454,660 thousand
Financing
As one of the key goals of successful financial management, the Company’s financial
assets, cash security and settlement of liabilities (hereinafter “liquidity”) were managed in
an optimum manner throughout the entire reporting period.
No movable or immovable assets of the Company were pledged as of 31 December 2021.
Borrowings
To ensure financial stability for the coming years, in 2015, the Company entered into a
framework loan agreement for CZK 120 million with ING Bank N.V., a joint-stock company
incorporated under the laws of the Netherlands, with its registered office at Bijlmerplein
888, 1102 MG under no. 33031431, represented in the Czech Republic through ING Bank
N.V., branch Prague, with its registered office at Českomoravská 2420/15, Libeň, 19000
Praha 9, the Czech Republic, ID: 492 79 866. The loan is secured by a promissory note
(“blank bill”). In 2021, this loan was used solely for the issuance of bank guarantees
related to the operation of licence agreements and participation in tenders.
35
Within the scope of licensing tenders for operating the water supply infrastructure
by certain cities and municipalities, the following bank guarantees were provided
as security:
Date of
issue
Issued to the
benefit of
Purpose of issue
Validity
Coverage
3. 9. 2020
Association of
Municipalities in
the Nový Jičín
District
Operation of the water infrastructure -
sewage systems owned by the
Association of Municipalities in the
Nový Jičín District
7 Sep 2020 – 31 Dec 2022
CZK 675,000
3. 9. 2020
Municipality of
Orlová
Operation of infrastructure owned by
the Municipality of Orlová
7 Sep 2020 – 31 Dec 2022
CZK 100,000
3. 9. 2020
Municipality of
Albrechtice
Operation of water assets owned by
the Municipality of Albrechtice
21 Dec 2020 – 20 Dec 2024
CZK 36,000
21. 12. 2020
Municipality of
Velké Losiny
Operation of a sewage system and
wastewater treatment plant for public
needs: in Velké Losiny and in its
suburbs - Maršíkov and Bukovice.
21 Dec 2020 – 20 Dec 2025
CZK 850,000
19. 12. 2018
Municipality of
Opava
Due fulfilment of operator’s
obligations arising from the contract
1 Jan 2019 – 31 Dec 2023
CZK 400,000
19. 12. 2018
Municipality of
Neplachovice
Due fulfilment of operator’s
obligations arising from the contract
1 Jan 2019 – 31 Dec 2023
CZK 150,000
9. 1. 2020
Municipality of
Vratimov
Due fulfilment of operator’s
obligations arising from the contract
9 Jan 2020 – 31 Dec 2024
CZK 260,000
9. 1. 2020
Municipality of
Řepiště
Due fulfilment of operator’s
obligations arising from the contract
9 Jan 2020 - 31 Dec 2024
CZK 114,000
21. 12. 2020
Municipality of
Horní Suchá
Operation of water assets owned by
the Municipality of Horní Suchá
1 Jan 2021 – 20 Dec 2025
CZK 230,000
21. 12. 2020
Municipality of
Dolní Lutyně
Due fulfilment of operator’s
obligations arising from the contract
1 Jan 2021 – 20 Dec 2025
CZK 130,000
21. 12. 2020
Municipality of
Štramberk
Due fulfilment of operator’s
obligations arising from the contract
1 Jan 2021 – 20 Dec 2025
CZK 106,500
7. 5. 2021
Municipality of
Písečná
Due fulfilment of operator’s
obligations arising from the contract
10 May 2021 – 10 May 2026
CZK 68,500
29. 9. 2021
Municipality of
Říčany
Tender for operation of the water
infrastructure owned by the
Municipality of Říčany
11 Oct 2021 – 31 Mar 2022
CZK 600,000
29. 9. 2021
Municipality of
Němčice nad
Hanou
Tender for operation of water
distribution, sewage discharge and
wastewater treatment facilities
4 Oct 2021 – 30 Apr 2022
CZK 1,000,000
Liabilities as of 31 December 2021 in CZK ,000
Text
2019
2020
2021
Long-termed payables and unearned revenues
6,210,194
6,293,747
913,029
hereof: Bank loans and issued bonds
5,369,282
5,381,539
0
hereof: Deferred tax payable
548,116
567,222
590,270
hereof: Payables with respect to financial lease
275,785
315,674
297,642
hereof: Reserves
17,011
29,312
25,117
Short-termed payables and unearned revenues
722,340
728,016
6,243,088
hereof: Bank loans and issued bonds
64,575
64,575
5,458,726
hereof: Trade payables and other payables
604,545
628,792
743,063
hereof: Payables with respect to financial lease
21,173
28,882
29,142
hereof: Tax payables to the state
25,614
1,178
8,021
hereof: Reserves
6,433
4,589
4,136
In 2021, the Company settled all of its liabilities in a due and timely manner.
36
Organisation and human resources
Labour relations in the Company were governed by the Labour Code and the Collective
Agreement signed for 2021. The Company has not set up any Remuneration Committee.
In its day-to-day activities, the Company strictly adheres to the principle of equal
opportunities (diversity policy) in hiring, employing and evaluating employees and
maintaining the principle of fair remuneration. The Company actively supports the
education and training of employees on all management levels.
Number of employees
2019
2020
2021
Re-calculated total number of employees
855
855
861
hereof employees in water networks
403
404
406
hereof employees in sewage systems
298
297
299
hereof – other employees
154
154
156
Profit/loss. Dividend per share.
2019
2020
2021
Profit/loss per share in CZK
109.73
116.97
131.46
Dividend per share in CZK
84.91
81.88
To be decided
by the sole
shareholder
The dividend policy is subject to decisions of the sole shareholder in relation to the
distribution of profits generated in the respective year.
Anti-bribery and anti-corruption measures
Measures against corruption and bribery are defined in the Company’s internal documents
– mainly in the Working Rules of SmVaK Ostrava. Each employee must acquaint
themselves with the contents of the Working Rules upon employment commencement
and confirm their understanding by appending their signature. This issue is also
addressed by the Code of Ethics of the FCC Group of which employees are informed and
which is available on the Company’s intranet and on the website www.smvak.cz in the
section About us. The Board of Directors approved the principles of the Anti-Corruption
Policy valid in the FCC Group.
The Board of Directors decided to apply the Code of Ethics of the FCC Group as werll as
other documents from the Compliance Management System in SmVaK Ostrava and to
issue a public announcement on www.smvak.cz about the Company’s commitment to
observe the rules specified in the Code of Ethics.
Respect for human rights
The Company fully respects the human rights of all entities which it has encountered as
part of its business and other activities. In terms of its business activity, the Company is
aware that situations with possible impacts on human rights may emerge. Therefore, the
Company uses efficient mechanisms providing fair solutions to these situations. This
principally involves the process of handling objections, complaints and protection of rights
in terms of the General Data Protection Regulation (GDPR). Essential principles are set
up within these processes; specifically: transparency, legitimacy and fair solutions. In
order to address potential complaints concerning tap water supplies and the draining of
wastewater through the sewage system, the Company has published its Complaints
Procedure on its website www.smvak.cz; in terms of personal data protection, the
37
Company has also published the Privacy Policy on its website including the form for
exercising the rights of data subjects. The Company has adopted the Human Rights
Protection Policy applied in the FCC Group.
Respect for human rights is subject to internal governance documentation and employee
training. The Company pays attention to human rights compliance by means of an internal
control system and the Code of Ethics of the FCC Group.
Court, administrative, and arbitration proceedings
Legal disputes where the Company is the Defendant
I. The petition that requires that the resolution adopted at the General Meeting
on 22 May 2017 with respect to the decrease in the registered capital and
distribution of the profit made in 2016 should be declared invalid
Because the final and binding judgement exists that the General Meeting resolution to
decrease the registered capital of 30 July 2015 is invalid and because the judgement
on the extraordinary appeal filed at the Supreme Court of the Czech Republic in 2017
has not been awarded yet, the General Meeting resolved to decrease its registered
capital in the same scope as in 2015.
Two minority shareholders (an individual who is also the authorised body of the other
minority shareholder) filed on 15 August 2017 at the Regional Court in Ostrava the
petition requiring that the General Meeting resolution of 22 May 2017 should be
declared invalid with respect to the decrease in the registered capital and distribution
of the profit made during the accounting period of the year 2016.
The Regional Court in Ostrava awarded on 4 December 2017 under Ref. 28 Cm
221/2017-68 the judgement that the General Meeting resolution was invalid with
respect to distribution of the profit made during the accounting period 2016 and with
respect to the decrease in the registered capital.
On 12 January 2018 SmVaK Ostrava filed an appeal against the judgement with the
High Court in Olomouc.
On 16 October 2018 the High Court in Olomouc dismissed the Regional Court
judgement under Ref. 5 Cmo 38/2018-125. Namely, it dismissed the judgement for the
shareholder who is the legal entity with respect to both distribution of the profit made in
2016 and decrease in the registered capital, and it dismissed the judgement to the
shareholder who is the individual with respect to the profit made in 2016. Regarding
the decrease in the registered capital, it dismissed the resolution and referred the case
back to the Regional Court in Ostrava that should consider it again on the basis of the
judgement awarded by the Supreme Court of the Czech Republic on 17 July 2018.
On 15 March 2019 the both minority shareholders filed an extraordinary appeal with
the Supreme Court of the Czech Republic where such extraordinary appeal was
against the judgement awarded by the High Court in Olomouc. The minority
shareholders believed that the High Court in Olomouc had incorrectly interpreted the
entire process and contents of the general meeting resolutions adopted at the general
meeting – the did not consider violation of shareholders’ right to receive information
about the company and information contained in protests filed at the general meeting.
The Company’s principal argument points were that the Company provided the
shareholders with each available information relating to individual items on the agenda
38
and that the Company answered all requests for information. The Company also
mentioned in its statement that the subject of the extraordinary appeal was considered
in the Supreme Court’s judgement to be unfounded and proposed to dismiss it in full.
On 9 March 2021 the Supreme Court awarded the following judgement: it dismissed
the extraordinary appeal in the part requiring invalidity of the resolution to distribute
the profit, and it referred the case back to the High Court for review in the part
requiring invalidity of the resolution to decrease the registered capital. In its resolution,
the Supreme Court addressed, in particular, the process legitimacy of the plaintiff: was
the plaintiff authorised to file a petition even if he did not take part in the General
Meeting? The Supreme Court of the Czech Republic concluded that the plaintiff was
authorised to file a petition and that is why the case was referred back to the High
Court in Olomouc. The Supreme Court did not deal with the decrease of the registered
capital.
The High Court in Olomouc dismissed in its judgement under Ref. 5 Cmo 38/2018-
202 a part of the original judgement awarded by the Regional Court in Ostrava, and
referred the case back to the latter court within the scope of judgement awarded by the
Supreme Court of the Czech Republic.
The Regional Court in Ostrava dismissed the petition, reasons being, among others,
absence of procedural legitimacy of the plaintiffs.
The judgement was awarded under Ref. 28 Cm 221/2017-244.
Legal court disputes where the Company is the plaintiff
I. Claiming of trade receivables
Court disputes in progress as of 31 December 2021 where the Company is the
plaintiff
Number of
cases
Amount in CZK
Receivables utilised in bankruptcy and
insolvency proceedings
155
11,119,519.36
Actions filed:
138
2,106,525.00
of which distraint
125
1,364,007.22
Receivables utilised in inheritance
proceedings
13
78,923.00
Receivables utilised in liquidation
proceedings
1
4,473.00
Cases where the Company is the plaintiff –
before action
119
1,213,303.76
Total cases pending
413
14,443,821.12
II.
SmVaK Ostrava filed at the Metropolitan Court in Prague an administrative petition
against the decision made by Státní energetická inspekce, No. 904047515, dated 10
December 2015, Ref. 0813029a14/1576/15/90.220/Kr. The matter was heard at the
Metropolitan Court of Prague under Ref. 3 Af 16/2016 where SmVaK Ostrava had
received a fine for incorrect application and use of a higher price for the green bonus
for electricity generated by combustion of sludge gas from wastewater treatment
plants.
39
The Metropolitan Court in Prague dismissed the SmVaK Ostrava’s petition on 22
September 2020 as it believed that there were no reasons for the petition. SmVaK
Ostrava brought an appeal in cassation with the Supreme Administrative Court of the
Czech Republic against the judgement.
Proposed distribution of the Company’s accounting profit made in 2021
CZK
Accounting profit
454,659,852.94
Proposed distribution of the Company’s profit
Net profit to be determined by the sole shareholder acting
in the capacity of the General Meeting
454,659,852.94
Business operations
In 2021, business operations were carried out by five customer centres (in Ostrava,
Frýdek-Místek, Karviná, Nový Jičín and Opava). Due to the epidemiological situation in
the Czech Republic, points of sale were closed for the whole of the year. In reaction to the
state of emergency declared by the government and the resulting anti-epidemic
measures, customer centres were closed to the public in specific parts of the year as well.
In most cases, their activities were ensured without the need for personal contact, i.e.
electronically, by phone or in writing.
In the periods of eased anti-epidemic measures (as of spring 2021), under strict
preventive hygiene conditions, the customer centres were open, enabling personal
contact with customers. An online booking system was introduced for scheduling personal
appointments at the customer centres.
In customer centres, normally when there is not a state of emergency and/or related
restrictions, customers may enter into contracts and amendments to contracts for
supplying drinking tap water and wastewater drainage services, make changes relating to
water tariffs and sewage charges, discuss invoicing matters, request payment schedules
in the event of inability to pay financial liabilities arising from drinking water supplies and
wastewater drainage, make complaints, request statements on potential conflicts with the
Company’s engineering networks, request for a permit to establish water and sewage
lines, place orders for construction or renovation of a line, order special services, such as
cesspit or septic tank pumping or delivery of drinking water in a tank.
Priority activities of customer centres include making contracts with customers for water
supply and wastewater drainage services.
More requests can be handled without personal visits of customers which, in turn, resulted
in more such requests.
In 2017, an application was launched at www.smvak.cz, allowing clients to order almost
50 types of service in nine basic areas without having to visit the Company’s customer
centres or plants in person.
Pursuant to Act No. 274/2001 Coll., Implementing Decree No. 428/2001 Coll., and the
Business Terms and Conditions of Water Supply from the Water Supply Network and
Drainage of Wastewater through the Sewage System, the Company enters into contracts
with customers for the supply of drinking water from public water supply networks and
provision of services pertaining to drainage of wastewater through public sewage
networks. Pursuant to an amendment to Act No. 274/2001 Coll. and the Civil Code, Act
No. 89/2012 Coll., contracts for public water supply and wastewater drainage concluded
40
with customers meet the requirements of the aforementioned amendment. At the same
time, the Company has started the process of making the existing customer contracts
compliant with valid legislation.
A total of 134,203 contracts were signed as of 31 December 2021, which accounts for
99.1% of the total number of customers amounting to 135,423.
Customers and contracts in force in 2021
Number of
customers
Number of
contracts in force
Contracts in force in
total/number of
customers ratio
Households
123,143
122,120
99.17 %
Corporate
customers
12,280
12,083
98.4 %
Total
135,423
134,203
99.1 %
Statements
The provision of statements with respect to construction plans of investors (both on the
existence of networks and project documentation) is among the basic supporting services
provided by the Company. Since 2019, the number of requests for statements has been
increasing. Following a slight increase in 2019 and 2020 (about 6 %) the year-on-year
growth was 9.8 % in 2021. 39,120 requests for statements were processed in 2021.
Number of processed requests and the year-on-year growth/decrease
Year
Processed
Year-to-year
growth/decrease
Number
%
2019
33,771
+ 6.5
2020
35,626
+ 5.5
2021
39,120
+ 9.8
Similar to other utility organisations, the Company’s web site allows for submitting
requests for an opinion. More than 96 % of all requests lodged in 2021 were filed in this
manner, also due to the fact that it was often impossible to file a request in person in a
customer centre.
41
Graph: Channels for submitting requests for a statement
In 2021, more than 45 % of all requests for a statement were processed via the automatic
system launched in 2016. Thanks to further improvements made in the automatic
statement processing system in 2019, the number of requests processed automatically is
same as in 2020. This means the system helps considerably to manage a high number of
requests.
Projected business development and financial position in 2022
The Company plans to spend CZK 753 million on investment projects in 2022. Similarly to
prior years, the Company aims to base its investment policy on the need for the ongoing
improvement and development of business activities. It focuses primarily on renewal,
upgrades and reconstruction of water supply and sewage networks and projects aimed at
compliance with legislative requirements for both drinking water purification and deliveries
and wastewater drainage and treatment. The Company will continue to support and
finance development projects pertaining to water supply infrastructure in the municipalities
of the region in which the Company operates. All investments in 2022 will be financed
using the Company’s own resources.
The plan for 2022 is to spend more by CZK 151.279 million, against 2021, for repairs,
maintenance, material consumption and other operating costs.
The Company will develop its activities and react to opportunities for boosting its further
growth, in particular through acquisitions of target water management companies and
tenders for the operation of water management infrastructure in the individual parts of the
Czech Republic.
In 2022, total expenses (not including the income tax) are planned to amount to CZK
2,442.783 million, income to CZK 2,981.862 million and profit before tax should reach CZK
539.079 million. The 2022 plan of total expenses is based on the anticipated needs and
price development.
Web
In person
By mail
Other
42
The draft business plan stipulates the following volume units for 2022: 33.02 million m³ of
billed drinking water, 27.068 million m³ of discharged water, and 19.422 million m³ of bulk
water.
The Company is not aware of any risk factors arising from its dominant market position in
the regions in which it operates.
12. CORE BUSINESS
Water resources
96 % of the Company’s production of drinking water is ensured by the treatment of raw
water that comes from central sources – the Kružberk, Šance and Morávka water
reservoirs managed by the state-owned Povodí Odry (“Odra Basin”) enterprise.
The water reservoir on the Moravice River by Kružberk at the foothills of the Jeseníky
Mountains was built as the first valley dam in the Odra basin in 1948-1955. Following the
completion of the higher-lying Slezská Harta reservoir, which Kružberk closely cooperates
with as part of the cascade, its tasks are to ensure the supply of raw water for the
Podhradí Water Treatment Plant, to enhance watercourse flow rates and to enable
industrial offtake from them. An important function of the cascade is flood protection.
The Šance dam on the Ostravice River above the town of the same name was built in
1964-1969 according to the original notions about the need for flood protection, which was
later supplemented with a plan to supply the region with drinking water. It supplies
untreated water to the Nová Ves Water Treatment Plant.
The valley dam on the Morávka River was, as a water source, built between 1961-1967
due to the growing requirements to ensure the supply of drinking water. Besides
enhancing flow rates below the dam, reducing flood flow rates and the continuous use of
the flow for energy purposes, the purpose of the facility was, in particular, to supply
drinking water. Untreated water is supplied to the Vyšní Lhoty Water Treatment Plant.
Pursuant to the current reservoir water quality, the manager may choose to offtake raw
water for treatment to produce drinking water out of several offtake altitudes, which
ensures the optimum set-up of the treatment process. Turbines thanks to which the
available energy potential of the transported water may be exploited are placed at the
inflow to each of the three main water treatment plants.
In order to protect the quality and safety of raw water, water resource protection zones are
demarcated in the catchment areas of all reservoirs, where special conditions apply to
business and the performance of possible activities so that the quality and capacity of
water in water reservoirs are not compromised.
Production of drinking water
The majority of the production takes place at water treatment plants in Podhradí by the
town of Vítkov, Nová Ves by the town of Frýdlant nad Ostravicí and Vyšní Lhoty close to
the town of Frýdek-Místek. The remaining part of drinking water production takes place at
another 41 local sources of ground and surface water.
Three central water treatment plants are interconnected by means of a system of feeder
mains, creating a backbone production and distribution system of the Ostrava Area Water
Supply System, which is operated mainly as a gravitational one with large-capacity
accumulations of drinking water. This, together with the possibility to interconnect and
substitute central sources, ensures a highly-reliable and continuous supply of drinking
water to the consumption points supplied. The drinking water production process and
product quality are monitored in compliance with valid legislation and in the frequency and
scope necessary for reviewing the correct set-up of technology processes. Besides
laboratory sample analyses, the quality of drinking water is monitored using a number of
continuous analysers, with the health limits thereon set by Decree No. 252/2004 Coll.,
43
which stipulates the safety requirements for drinking water and hot water, including the
frequency and scope of reviews.
Legislative water samples are analysed in an accredited laboratory, with analyses of
operational water tests provided by operational laboratories at the Podhradí Water
Treatment Plant and the Nová Ves Water Treatment Plant. In the long term, the Company
has succeeded in maintaining a high quality of drinking water supplies.
Quality of drinking water – central water treatment plants (WTPs)
2021
WTP
Podhradí
WTP
Nová Ves
WTP
Vyšní Lhoty
Quality of water
Unit
Limit value
pursuant to Act
No. 258/2000
Coll. and
Decree
No. 252/2004
Coll.
Treated water
Average value
Treated water
Average value
Treated water
Average value
pH
6.5 – 9.5
7.63
7.71
7.91
ANC
4,5
mmol.l
-1
-
0.85
0.64
0.56
BNC
8,3
mmol.l
-1
-
0.027
0.024
0.010
Colour
mg.l
-1
Pt
20
3.69
1.60
0.14
Turbidity
ZF
5
0.18
0.064
0.042
COD
Mn
mg.l
-1
3
1.86
1.03
0.55
Iron
mg.l
-1
0.2
< 0.05
< 0.05
< 0.05
Manganese
mg.l
-1
0.05
< 0.025
< 0.025
< 0.025
Nitrites
mg.l
-1
0.5
< 0.01
< 0.01
< 0.01
Aluminium
mg.l
-1
0.2
0.03
0.04
0.01
The volume of drinking water production in 2021 followed the trend of the preceding
period. During the year, the Company produced 57.554 million m
3
of drinking water, which
represented a year-on-year increase of 0.162 million m
3
.
The volume of drinking water production – time process
Water treatment plants – production of
water, thousand m
3
/year
2015
2016
2017
2018
2019
2020
2021
Podhradí
32,614
29,723
27,468
28,704
28,016
28,244
28,142
Nová Ves
22,941
23,273
24,043
23,715
23,513
21,598
22,061
Vyšní Lhoty
5,694
5,800
5,705
5,167
5,376
4,860
4,867
Local sources
3,198
3,240
3,190
3,143
3,139
2,690
2,484
Total
64,448
62,036
60,406
60,729
60,042
57,392
57,554
Despite the exceptionally challenging society-wide impact of the COVID-19 pandemic
throughout 2021, the Company was able to ensure smooth supplies of drinking water, fully
satisfying customer requirements for the quality and amount of supplied drinking water
thanks to sufficient capacities and flexibly adjusted organisation of activities. Certain
operating activities were regularly governed by rules defined in the internal Pandemics
Plan, and a flexible approach made it possible to use available capacities of plants and
centres, in line with updated measures declared by the Government of the Czech
Republic.
As of 31 December 2021, the Company operated a 5,120-km water supply network,
including 140,030 water service connections, 357 water tanks and 223 pumping stations.
The supply of top quality drinking water, which ranks among the best in the Czech
Republic, is among the Company’s long-term goals that it has succeeded in meeting.
44
In comparison to 2020, the volume of billed water saw a slight increase: by 100,000 m
3
.
Consumption of drinking water in households increased (by 168 thousand m
3
year-on-
year); however, the amount of water supplied to other customers saw a decrease (68
thousand m
3
year-on-year). The amount of bulk water decreased by 250 thousand m
3
compared to 2020. A total of 23,609 thousand m
3
of drinking water was delivered to
households, and 8,795 thousand m
3
to other customers.
Water production and supply in units of volume
In 2021, the volume of unbilled water decreased slightly from 6,704 thousand m
3
down to
6,519 thousand m
3
, i.e. by 185 thousand m
3
.
The year 2021 was yet again marked by increased efforts in respect of the construction
and assembly activities provided by the Central Emergency Service and individual
emergency centres. The recorded revenue amounted to CZK 101.46 million.
General information about water networks
Indicator
Unit
2019
2020
2021
Water produced in own plants
thousand
m
3
60,042
57,392
57,554
Bulk water taken from third-party water
companies
thousand
m
3
79
77
80
Bulk water supplied to third-party water
companies
thousand
m
3
20,257
18,461
18,711
Water produced for use by direct consumers
thousand
m
3
39,864
39,008
38,923
Billed water
thousand
m
3
33,269
32,304
32,404
Of which: households
others
thousand
m
3
thousand
m
3
23,029
10,240
23,441
8,863
23,609
8,795
60042
57392
57554
6595
6704
6519
0
10000
20000
30000
40000
50000
60000
70000
2019 2020 2021
Rok
Vývoj výroby vody a souvisejících ukazatelů v tisicích m
3
Voda vyrobená ve vlastních zařízeních (v tis. m3) Voda nefakturovaná (v tis. m3)
Water produced in Company facilities (in thousand m
3
)
Development of water production and related indicators in thousand m
3
Unbilled water (in thousand m
3
)
45
Indicator
2019
2020
2021
Number of residents connected to Company’s
system
721,491
721,469
714,164
Number of water supply networks for public
consumption
of which: group pipelines
130
55
130
55
130
55
Length of water supply network (km)
5,072
5,099
5,120
Number of water service pipes
136,510
138,350
140,030
Length of water service pipes (km)
770
770
770
Number of installed water meters
138,552
140,428
142,138
Number of water meters replaced per year
18,955
19,219
21,240
Number of fixed-tariff water off-takes
1,589
1,573
1,540
Number of pumping/re-pumping stations
219
221
223
Number of water treatment plants
45
46
47
Number of water reservoirs
359
358
357
Volume of water reservoirs (m
3
)
389,649
389,424
388,124
Specific consumption of water (per liter per capita per day)
Specific water consumption per capita/day in 2021 amounted to 124 litres for total billed
water and 91 litres for billed water supplied to households. Total specific billed water
consumption decreased by 1 litres compared to 2020; specific water consumption billed to
households increased by 2 litres per capita/day compared to 2020.
46
Operation of sewage systems
In 2021, the Company operated sewage networks in 80 municipalities and cities in the
Moravian-Silesian Region and in Velké Losiny in the Olomouc Region in the total length of
1,912 km. A total of 488,728 inhabitants were connected to the network through sewage
service connections. The sewage network included 187 pumping stations transporting
wastewater from low areas to gravitation sewage pipelines fitted with wastewater
treatment plants at the end of each pipeline.
In 2021, a total of 26,994 thousand m³ of wastewater was drained (including billed
rainwater drainage) in the municipalities within the Company’s scope of operation.
Wastewater treatment operations were carried out in 76 plants, of which 74 are
mechanical/biological wastewater treatment plants and 2 mechanical wastewater
treatment plants.
Their overall capacity is 263,394 m³ per day, which means 959,523 population
equivalents (PE).
The quantity of wastewater drainage from households and industry saw a slight increase
as compared to 2020. The proportion of wastewater treated in sufficient efficiency facilities
did not change substantially. During the reviewed period, a total of 50,800 thousand m³ of
wastewater was treated in all wastewater treatments plants, of which 50,778 thousand m³
was in sufficient efficiency facilities.
Throughout the year, the operation of the sewage systems and wastewater treatment
plants was trouble-free with no major interruptions or failures, despite the fact that it was
necessary to cope with the strict measures introduced during the COVID-19 pandemic,
which affected day-to-day operating activities.
During 2021, a number of constructions were performed on sewage networks. The most
significant are as follows:
Frýdlant nad Ostravicí, the Hukvaldská street – increasing the capacity of the “AC”
sewer and installation of the rainwater reservoir
Frýdek-Místek, Pionýrů, the Ostravská street – reconstruction of the “AN” sewer
Třinec, the Žižkova and Lipová streets – reconstruction of the “AD” sewer
Karviná - Fryštát, the Ostravská street– reconstruction of the “alfa” sewer (Š12-Š17)
Rychvald, the Středová street – reconstruction of the sewage system
Český Těšín, the Kpt. Jaroše street – reconstruction of the “EVIa” sewer
Karviná-Nové Město, the Erbenova and Havířská streets - reconstruction of the sewage
system
Nový Jičín, K nemocnici street - reconstruction of the “AJ” sewer
Odry, the Mendlova street - reconstruction of the sewage system
Frenštát pod Radhoštěm, the Příčnice and Školská čtvrť streets – reconstruction of the
“AC" sewer
Nový Jičín, the Žižkova and Nábřežní streets – reconstruction of the “AH-1“ sewer
Sewage pumping station, Opava (the Fügnerova street) – repair of the pumping sump
and pumping facility
Bohumín, the Nová street – reconstruction of the sewage system
Opava, the Nádražní okruh street – reconstruction of inspection shafts in the “AH”
sewer
Opava, the Otická, náměstí Svobody and Sady Svobody streets – reconstruction of the
sewage system
47
The projects implemented and launched in the area of wastewater treatment in 2021
focused on the renovation of facilities, enhancing the optimisation of technology
processes and reducing the discharge of residual pollution, in order to meet limit values
stipulated by laws, were as follows:
WWTP Frýdek–Místek – reconstruction of the service building (completion of
construction works)
WWTP Frýdek Místek – repair of facilities for the digestion tank VN-2
WWTP Havířov – reconstruction of the primary sludge pumping station
WWTP Havířov – reconstruction of the dumping unit for stabilised sludge from the
storage tank
WWTP Kopřivnice – completion of construction works at the settling tank DN-3
(completion of works)
WWTP Bílovec – increasing the capacity (completion of works)
Installation of measurements for relieve water in WWTP
All mechanical/biological wastewater treatment plants owned by the Company comply
with the requirements of the EU and Government Regulation No. 401/2015 Coll.
General information about sewage systems and wastewater treatment plants
Indicator
Unit
2019
2020
2021
Number of residents living in
houses connected to sewage
systems for public needs
number
484,050
485,424
488,728
Number of municipalities where
sewage system for public needs
is available
number
79
80
80
Wastewater treatment
installations
number
72
75
76
Capacity of wastewater treatment
plants
m
3
.d
-1
261,759
262,140
263,394
Length of sewage systems
km
1,842
1,872
1,912
Number of sewer connection
pipes
number
54,219
55,280
56,858
Quantity of wastewater
discharged into sewage systems
for public needs (excluding billed
rain water)
thousand
m
3
23,305
22,957
23,262
of which treated wastewater
thousand
m
3
23,251
22,687
23,027
Quantity of treated wastewater
(including rain water)
thousand
m
3
48,284
55,180
50,798
Sludge produced in wastewater
treatment plants per year (in
100% dry mass)
t.year
-1
10,214
10,034
10,252
48
Inhabitants connected to public sewage systéme and wastewater treatment plants
Inhabitants connected to wastewater plants broken down by treatment level
49
Volume of wastewater treated with sufficient efficiency (in thousand m
3
r-1)
Investment projects and repair of tangible assets
The cost of investment projects and supplies in 2021 exceeded CZK 744 million.
Summary and structure of investments in 2021 (in CZK thousand)
50
Investment summary by field (in CZK thousand)
Investment summary by category (in CZK thousand)
51
Major investment projects implemented and completed in 2021
Name of the investment project
Total costs in
CZK ,000
Water supply conduit DN 500 Chlebovice-Staříč-Bělá, reconstruction
146,501
Water reservoir in Mniší – repair and reconstruction of building structures in
the storage tank and water reservoir
11,265
Karviná-Fryštát, the Máchova, Ostravská, Alšova, Husova, Na Bělidle streets—
replacement of water pipelines
27,228
Havířov - Šumbark, the Odboje and Dukelská street – replacement of water
pipelines
14,453
Mniší – replacement of a water pipeline
15,051
Nový Jičín, the K Nemocnici street – replacement of a water pipeline
6,815
Žimrovice, Meleček - reconstruction of a water pipeline
11,501
Opava, the Mostní and Sadová streets – replacement of water pipelines
24,650
Frýdlant nad Ostravicí, the Hukvaldská street – increasing the capacity of the
“A” sewer
33,825
WWTP Frýdek–Místek – reconstruction of the service building
18,377
Třinec, the Žižkova and Lipová streets – reconstruction of the “AD” sewer
12,143
Karviná - Fryštát, the Ostravská street– reconstruction of the “alfa” sewer (Š12-
Š17)
19,074
WWTP in Kopřivnice - reconstruction of settling tank, DN-3
38,223
WWTP Bílovec - increasing the capacity
60,741
Nový Jičín, K nemocnici street - reconstruction of the “AJ” sewer
10,634
Bohumín, the Nová street – reconstruction of the sewage system
16,500
Opava, the Otická, náměstí Svobody and Sady Svobody streets –
reconstruction of the sewage system
13,113
Major investment projects commenced or implemented in 2021
Name of the investment project
Total in CZK
,000
2021 in CZK
,000
2022 onwards
in CZK ,000
WTP in Nová Ves – repair of technology and
automated control system
132,528
6,100
1,200
WTP in Podhradí – replacement of a pipe section,
DN 1000 – drainage from ozone reaction tanks -
flocculation
20,067
14,400
4,390
Petřvald, the Vodárenská and Šumbarská streets -
replacement of a water pipeline
12,989
1,800
7,665
Water reservoir in Salaš 2 x 1500 m
3
– refurbishment
of the facility
10,726
7,187
3,533
Water tower in Albrechtičky, 300 m
3
– refurbishment
of the structure
7,413
7,321
92
Jančí – connection to the water supply in Větřkovice
14,883
11,520
1,957
Extension of metering for relieve water in WWTP –
1
st
phase, 2
nd
phase
32,793
19,406
786
Vratimov, the U Mateřské školy and Na Vyhlídce
streets – reconstruction of the sewage system
9,286
4,267
4,462
52
Investments in operating assets in 2021
Name of the investment project
Investment made
in 2019, CZK ,000
Investment made
in 2020, CZK ,000
Investment made
in 2021, CZK ,000
Cars and trucks (including leased vehicles)
17,000
35,219
32,635
Special vehicles, accessories, trailers
15,277
5,421
85
Pumps
3,970
2,257
2,849
Hand-held tools
348
398
165
Mechanisms
1,131
1,494
129
Water meters
5,473
4,633
9,109
IT
5,140
12,193
8,262
Others
6,280
10,609
18,863
Major investments in past years
Major projects commenced or completed in 2019
The most significant construction project in 2019 was commencement of reconstruction of
the DN 500 feeder (Chlebovice – Staříč – Bělá) and continuing reconstruction of
technology units and automated control system in WTP Nová Ves.
Regarding the drinking water supplies, major investment projects included reconstruction
of the water supply in Bohumín (the 5. května, Kosmonautů, Čs. legií, J. Koczura and
Okrajní streets) where works were coordinated with owners of other utilities and networks
(Gridservices, CETIN) and Municipality of Bohumín which was reconstructed there its
sewage system. Another significant investment was reconstruction of the water supply
system in Starý Jičín – Vlčnov, the reason being too many failures and poor technical
condition of the infrastructure.
Regarding the discharge and treatment of wastewater, the significant investment projects
included the ongoing construction of the sewage system and wastewater treatment plant in
Dobroslavice, Doubrava and Petřvald. The purpose of the construction projects was to
discharge waste water in a controlled manner into new wastewater treatment plants or the
existing sewage system. At the same time, sewer outlets were cancelled there.
Major projects commenced or completed in 2020
The most important project commenced in Ostrava Area Water Supply Networks was the
reconstruction of the Mniší Water Reservoir and Frýdek Water Reservoir, the replacement
of part of the DN 1000 drainage piping from the ozone reaction tanks in Podhradí WTP,
and the ongoing reconstruction of the DN 500 feeder Chlebovice – Staříč – Bělá.
In the area of supplies of drinking water, important completed investments included the
reconstruction of water mains in Stará Ves (Na Závodí Street, U Vody Street and
Petřvaldská Street), Chlebovice – Lysůvky, Bohumín – Záblatí (Sokolská Street,
Bezrušova Street, Na Pískách Street), Nový Jičín (Máchova Street, Nábřežní Street,
Msgr. Šrámka Square, Komenského Street, Novosady Street), and Opava (Mostní Street,
Sadová Street – to be finished in 2021).
Further, the reconstruction of the building of the intervention centre in Orlová was
completed, which will significantly reduce the operating costs of the building.
53
In the area of wastewater drainage and treatment, constructions were completed that
removed the existing sewer outfalls without treatment facilities and wastewater is now
being drained to the newt wastewater treatment plants in Dobroslavice and Doubrava. In
a similar construction in Petřvald – Podlesí, wastewater is newly drained to Havířov
WWTP through a sewage pumping station.
Other initiated projects include a construction of a settling tank in the area of Kopřivnice
WWTP and the extension of the degree of biological treatment and sludge management in
Bílovec WWTP.
Major projects commenced or completed in 2021
The most important project commenced in Ostrava Area Water Supply Network that was
completed in 2021 was the reconstruction of the DN 500 feeder (Chlebovice – Staříč –
Bělá) which started in 2018. Other major investment projects include the reconstruction of
technology units and automated control system in the water treatment plant in Nová
Vees, reconstruction of technology units in the deacidification station in Jakubčovice,
reconstruction of the water treatment plant in Klokočůvek, and refurbishment of some
small-size water reservoirs.
Investments were also made into protection of the facilities.
Regarding the drinking water supplies, the major construction projects included the
reconstruction of water pipelines in Karviná – Fryštát (the Máchova, Ostravská, Alšova,
Husova, and Na Bělidle streets) and in Havířov – Šumbark (the Odboje and Dukelská
streets). In Nový Jičín, the water supply pipe was replaced at the K Nemocnici street.
Water supply networks were reconstructed in Mniší, Žimrovice (the Meleček street), and in
Vítkov (the Nová street). A major construction project, which started in 2021 and is
planned to be completed at the beginning of 2022, is connection of Jančí to the water
supply network in Větřkovice. Major investments were also made in reconstruction of
water reservoirs in Salaš, Vítkov, and Albrechtičky.
Regarding the wastewater discharge and wastewater treatment, the most significant
projects were construction of the settling tank in WWTP Kopřivnice and extension and
intensification of WWTP Bílovec. Major reconstruction of sewers were carried out in Nový
Jičín (the K Nemocnici street), and Opava (the Nádražní okruh, Otická and náměstí
Svobody streets). In Frýdlant nad Ostravicí, the capacity of the sewer was increased and
a storm tank was installed at the Hukvaldská street.
In many locations the Company used synergies and coordinated its investment projects
with other entities and municipalities. Such projects include reconstruction of the sewage
and water supply networks in Karviná – Fryštát where our Company helped to renew
surface of the road, or the reconstruction of the water supply network in Kopřivnice Mniší.
Works were coordinated with the Municipality of Kopřivnice, which constructed there a
sewage network. In Orlová, the Municipality repaired the entire road surface, once the
reconstruction of the water pipeline was completed.
Investment strategy and long-term investment plan
Ostrava Area Water Supply Network
The long-term investment plan for the 2022–2030 period is supported by projects that are
ready design-wise or the design solution of which is currently still being worked on.
54
In the area of water treatment plants, continuous modernisation of technological
equipment is planned in order to ensure high quality of produced water, as well as
reliability of the system.
In 2018, the modernisation of the technological part and the automated management
system in the Nová Ves water treatment plant was launched. This extensive construction
project will be completed in spring 2022. In 2022, it is planned to start extensive
reconstruction of the water treatment plant in Vyšní Lhoty.
Ensuring security in the premises of water treatment plants and related facilities is also of
strategic importance. That is why in 2019, building security modernisation projects were
launched in the water treatment plants in Nová Ves and Podhradí. These projects were
completed at the end of 2021.
With regard to the feeders, the schedulled exchange of parts in an unsatisfactory technical
condition continued. In 2019, the reconstruction of the DN 500 Chlebovice – Staříč – Bělá
feeder was launched; the works were finished in 2021. In the second stage, the
reconstruction of the DN 500 Záhumenice – Bělá feeder will continue in 2022.
Water supply systems
Major resources are directed at the restoration of the water supply network. In the 2022–
2030 period, the length of the water mains under restoration is planned to be gradually
increased. Further resources are put into the reconstruction of water tank facilities or
pumping stations, including the technological equipment, management system, and
improvement of building security. In 2022, the extensive reconstructions of water
reservoirs in Albrechtičky, Vítkov, Salaš and Puntík will continue. Connection of the Jančí
facility to the water supply network in Větřkovice will be completed.
Sewage system and wastewater treatment plants
In the next period, most of the resources will be directed at the restoration of the sewage
network, including the finalization of the liquidation of sewer outlets without treatment
facilities. Further significant resources will be allocated to the reconstruction of the
technological equipment of wastewater treatment plants and, pursuant to the legislative
requirements, to equipping the relief chambers with devices to measure the volume and
quality of relieved water. The Company is also preparing for changes in legislation
regarding sludge management. A study on sludge disposal for the upcoming period was
carried out and in 2022, the Company will complete a project of the first of the planned
sludge dryers in the region.
Repair of tangible assets
In 2021, repairs were carried out on water supply facilities (water treatment plants, water
tanks, pumping stations, wastewater treatment plants), and on water supply and sewage
networks. All failures were resolved in a prompt and efficient manner. The volume of repair
and maintenance work performed by subcontractors amounted to CZK 270,463 thousand
in 2021, which represents an increase of 11 % against the plan.
55
Repair volumes in in CZK thousand – by fields
56
Key repairs performed in 2021
Name
Total in CZK ,000
Deacidification station in Jakubčovice – reconstruction of
technology units
3,222
Water treatment plant in Klokočůvek – repair and reconstruction of
technologies and buildings
3,306
Automated station in Stará Ves nad Ondřejnicí – reconstruction of
the facility
2,097
Water reservoir in Salaš 2 x 1500 m
3
– refurbishment of the facility
10,302
Water tower in Albrechtičky, 300 m
3
– refurbishment of the
structure
7,482
Water reservoir in Vítkov 650 m
3
– refurbishment of the structure
6,124
WWTP Frýdek Místek – repair of facilities for the digestion tank
VN-2
9,503
Immovable assets
The Company owns immovable assets in the following values:
(in CZK ,000)
2019
2020
2021
Buildings, net value
6,350,945
6,413,437
6,900,569
Land
164,839
166,356
167,683
Most buildings owned by the Company are long-term tangible assets used primarily for
production of water, for providing the residents and other consumers with drinking water,
and for discharge and treatment of wastewater.
13. INFORMATION TECHNOLOGIES
One of the main tasks in 2021 was to further increase the security and reliability of
information systems and ensure suitable technical means for working from home during
the coronavirus pandemic. As increased mobility and improved security of communication
were required, all employees were provided smart cell phones and development of in-
house mobile applications started.
IT Department was involved in a development project aimed at better protection of
Company’s facilities.
The backbone IT network was modernised and new, fast, and secured technologies were
installed. Desktop PCs were replaced with laptops that can be used for home offices.
The server room was modernised and its security has improved: the central back-up
source was modernised, efficient fire protection measures were taken, A/C was upgraded
and the server room is now monitored by the safety and security system.
In each site, the key active network elements were replaced, the objective being to
increase the transmission rate and improve cyber-attack resistance. Key systems are
covered now by 24x7 support from suppliers.
Within IS implementation in 2021, the DMS launch project continued: employees can
access now a training portal and e-learning provides cyber security courses. The platform
is ready for gradual transfer of most in-house training and courses into a digital form.
Mobile apps are used now for work planning and mobile wage tickets. A security app is
available, which analyses vulnerability of the IT infrastructure by third parties.
57
At the end of 2021, NÚKIB (National Cyber Information and Security Agency) classified
SmVaK Ostrava as a provider of “the basic service” which, in turn, results in other
organisational, technical and procedural obligations and tasks for the oncoming years.
In 2022, the archiving system is planned to be launched, a supplier for SOS (Security
Operation Center) should be chosen and the centre is expected to be put into operation.
And the Company will continue development and security of its information and
communication infrastructure.
14. SUSTAINABLE DEVELOPMENT
With respect to its activities, the Company influences the lives of the majority of the people
in the region, be it through its customers to whom it supplies drinking water and provides
wastewater drainage, its employees or suppliers of material, technologies and services.
The Company is fully aware of its responsibility for the region in which it operates and has
thus incorporated the principles of social responsibility and sustainable growth into all its
activities. The Company’s philosophy is based on four pillars, namely Corporate
Governance, People, the Environment and the Region.
Corporate Governance
The Company voluntarily abides by the selected Chapters of the Code of Corporate
Governance based on the OECD principles compiled by the Czech Securities
Commission.
Being a member of the FCC Group, the Company also adopted the FCC Group Code of
Ethics which it implemented and adjusted in line with its specific conditions. In line with the
compliance programme of the FCC Group, the Company also adopted the Policies that
supplement the FCC Code of Ethics where the policies are included in the Compliance
Management System. For more details see Chapter 8 in this Annual Report. The
documents relating to the Compliance Management System were published on the
Company’s intranet, Company’s website and in locations accessible to all employees.
In 2021, the policies were implemented into day-to-day reality of the Company.
The Company is a holder of five quality management certificates, namely:
ČSN EN ISO 9001: 2016 (Quality Management System).
ČSN EN ISO 14001: 2016 (Environmental Management System)
ČSN ISO 45001: 2018 (Occupational Safety and Health Protection Management System)
ČSN ISO 50001:2018 (Energy Management System)
ČSN ISO 14064-1(Measuring and Reporting Greenhouse Gas Emissions – Carbon
Footprint)
In June 2021 the Company successfully completed a recertification audit extending the
validity of three certificates (the occupational safety and health protection management
system, quality management system and environmental management system). The
Company also successfully completed an external surveillance audit of the energy
management system. The recertification is due in 2022.
Human Resources
As the Company fully realises the significance of qualified and motivated employees for its
operation and further development, it pays great attention to human resources. In 2021,
labour relations were in compliance with the Labour Code and the applicable collective
bargaining agreement (in force for the 2020-2021 period), which is signed on a yearly
basis. The Company has not established a special remuneration committee.
58
Recalculated headcount – development over
time
2016
2017
2018
2019
2020
2021
Blue
collars
555
555
552
542
544
548
White
collars
313
305
311
313
311
313
Total
868
860
863
855
855
861
Occupational safety
The Company continuously pays particular attention to its occupational safety and health
protection management system in all aspects of its operation. In line with the ISO
standards, it has therefore implemented an integrated occupational safety and health
protection management system under the new ČSN ISO 45001 standard. In June 2021,
the Company successfully completed another supervisory audit and together with quality
management and environmental protection succeeded in extending the validity of the
certificate under the ČSN ISO 45001 standard.
As a result of implementing the ČSN ISO 45001, the entire Company employs
occupational health and safety and fire safety standards with the objective to enhance the
level of health and safety of the Company’s employees.
New risks are regularly being identified and implemented in the risk register.
Effective measures are adopted to mitigate the potential impact on employees’ health,
such as modifying personal protective work equipment and replacing individual protection
measures with collective employee protection measures. The implementation and
maintenance of the integrated management system affects all areas of occupational
safety, such as compliance with safe work procedures in the operation and maintenance
of water management facilities or performing employee tasks on roads and movement
thereon; enforcing conditions regarding compliance with occupational safety upon the
conclusion of contractual relations with suppliers; issuing of entry permits within the
Company’s facilities; performing worksite supervision; performing controls as part of
reconstruction of buildings and technical facilities; staff training; worksite sanitation
standards; continuous use of personal protection aids; provision of prophylactic drinks to
employees, prevention of occupational injuries, etc.
In 2021, eight light occupational injuries were recorded, none of them resulting in
permanent health damage. The investigation of their causes did not identify any violation
of regulations on the employer’s part. In view of the demanding and versatile nature of jobs
performed by Company employees and the impact of climatic conditions, a high frequency
of groundwork and road work, this record shows that the implementation of the ČSN ISO
45001 standard and its continuous improvement has a long-lasting positive effect on the
occupational safety and health protection of the Company's employees.
In 2021, the Company continued with the health and safety at work project focused on the
culture of prevention which includes four tools for mutual communication between
employees and the employer. In the course of the project, the management team visited
the worksites, refresher employee training was organised, and the activities were observed
from the perspective of occupational health and safety. Talks with employees on
occupational health and safety were organised on a regular basis at the facility centres.
The aforementioned tools were brought to the Company’s employees’ notice and they fulfil
their purpose as further means of communication between the employees and the
management of the Company.
59
In relation to the COVID-19 pandemics in 2021, increased requirements were placed on
equipping all employees with personal protective equipment, which served as a preventive
protection against the spread of COVID-19 (masks, respirators, anti-COVID disinfectants,
disposable gloves etc.). This equipment was adequately provided to all employees with
regard to their job classification.
Because of the pandemics, it was necessary to take several organisational measures, the
purpose being to eliminate potential risks and spread of infection among the employees.
Education and training
The training system is based on the relevant regulations and laws related to individual
activities. A training plan is prepared for each year and approved in line with the
methodology instruction. The training plan is based on the records of work activities and
health checks of employees, which subsequently form the basis for training and medical
examination frequency.
It is possible to assign training in the human resources information system. The system
subsequently evaluates whether the prerequisites for the performance of a specific activity
are met, i.e. whether the training or relevant health checks have been realised. The
system also informs the relevant department heads and human resources officers about
any training or health checks whose due date is approaching. The training sessions are
organised based on their nature, location of the operation and the number of employees
signed up for the training, in cooperation with the relevant department heads and human
resources officers. In line with the program of the Integrated Management System, the
employees may choose to be vaccinated against hepatitis and tick encephalitis.
In 2021 the Company provided 4,311 hours of training. This represents 21.5 hours of
training per employee per year (+2.6 % per employee). The Company focused on
organising only training that was absolutely necessary, especially training required by law
and activities available online
Benefits
The Company provides its employees with a number of benefits, such as meal vouchers
for employees working at least four and a half work hours a day. The Company covers 60
% of the value of the employee meal vouchers. Providing that certain criteria are met, the
employees are also entitled to vouchers for cultural, sports and social events.
In compliance with Section 212 of the Labour Code, all employees have an additional
week of vacation. Employees who are engaged in particularly hard work (e.g. in the
sewage system operation and wastewater treatment plants) are entitled to another
additional week of vacation. The Company provides contributions to employees and their
family members for child camps, package tours, medical and wellness therapies in line
with the regulations approved in the collective bargaining agreement.
In extreme cases of social need, the Company offers employees (or their bereaved family
members) a one-off non-repayable benefit amounting to CZK 15,000. Upon a written
request, the Company may provide a re-payable interest-free loan amounting to CZK
20,000/CZK 50,000 as appropriate. The Company’s employees receive rewards on special
work and life anniversaries, or merit rewards (e.g. Jánský medal or commemorative
crosses for blood donors).
Employees who meet certain criteria receive contributions to pension funds.
60
Environment
The ongoing objective of the Company’s operations is to ensure long-term protection of
the environment in regions where the Company conducts business, with an increased
focus on sustainable development. Investments in wastewater drainage and treatment aim
primarily to renovate the existing sewage networks and upgrade the facilities housing
sewage pumping stations and wastewater treatment plants. The Company was awarded
the ČSN EN ISO 14001: 2016 certification. Investments in wastewater drainage and
treatment focus primarily on the renovation of the existing sewage networks and upgrade
of wastewater treatment plants and of the facilities housing sewage pumping stations.
The Company continued to expand and improve services provided to municipalities in the
operation of sewage systems and wastewater treatment plants and in meeting related
legislative environmental requirements, including advisory services, particularly in respect
of projects co-funded from EU grants or from national sources. The Company operates
sewage systems and wastewater treatment plant facilities in numerous municipalities and
cities under license contracts entered into with these entities, and also provides related
professional technical support.
The Company introduces elements of biodiversity in its premises where it makes sense
environmentally, technologically, and economically. In water tank areas, WTP and WWTP
areas, flower meadows are being introduced on a larger scale, as well as bug hotels. The
Company plans to continue with these activities in the future, intending to expand
biodiversity in suitable areas by introducing new elements (pools etc.).
Carbon footprint monitoring
The Company decided to carry out a comprehensive analysis of how its activities affect
the surrounding environment in terms of greenhouse gas emissions. For this reason, it
described its carbon footprint in great detail in line with the ČSNISO 14064-1 standard. Its
calculation entailed creating a methodology, the correctness and completeness of which
was verified by an independent audit company.
Simultaneously, the calculation of the Company’s carbon footprint in 2014 was verified,
which was selected to be the reference year and which serves as a benchmark for
comparing the carbon footprint in the subsequent years.
The Company intends to continue in the activities leading to the reduction of its carbon
footprint.
System for energy efficiency improvement
In 2016, the Company became the second water management company in the Czech
Republic to implement the ČSN ISO 50001 standard. In June 2021, the Company also
successfully underwent the surveillance audit. The implementation of this standard entails
monitoring energy handling with a view to improving the energy efficiency of operations
and technology facilities. Measurable objectives and targets have been set as to what
savings may be achieved in handling energies and in which areas.
The introduction of the ISO 50001 system represents an addition to and expansion of the
existing integrated management system, which will consequently lead to a constant
monitoring of energy consumption, a pursuit of savings in energy consumption and a
gradual optimisation of the use of all types of energy in the Company.
Small hydroelectric power plants and cogeneration units
In addition to producing drinking water and facilitating wastewater treatment, modern
water management facilities use their capacity to generate clean renewable electricity or
heat. In 2021, the Company’s facilities using renewable energy sources generated 10,025
MWh of electricity.
61
Small hydroelectric power plants installed within the Ostrava Area Water Supply Networks
generated 4,923 MWh, of which 1,834 MWh were sold to the ČEZ Distribuce distribution
network and the Pražská energetika trader, and the remaining 3,038 MWh were used to
operate the technological equipment of the Ostrava Area Water Supply Networks.
Transmission losses (low/high voltage) amounted to 51 MWh.
Co-generation units in the wastewater treatment plants generated 5,102 MWh of
electricity, of which 4,128 MWh were allocated for powering the operation of technological
equipment, 65 MWh were supplied to the ČEZ Distribuce network, and 909 MWh were
consumed by the operation of the co-generation units.
The methodology guidelines for waste management, chemical substances management,
air protection and wastewater discharge were updated to comply with the relevant
legislative changes and reflect the actual conditions in respective Company centres.
Region
The Company supports activities of non-profit organisations working with children,
teenagers, people with disabilities and the elderly. SMVAK Ostrava is a partner to
numerous cultural, social, sports and educational events organised in the region,
organised principally by local towns and municipalities.
In 2021, activities in this area were substantially limited due to the epidemic situation and
the resulting restrictions, which affected the organisation of events in the aforementioned
areas. Many projects which were supported in past were cancelled.
Due to this fact, the Company supported organisations that joined the fight against the
novel coronavirus, whether by providing material or financial support.
The Company is a major employer in the region.
Given that its annual investments in the renovation of the water management infrastructure
amount to hundreds of millions of Czech crowns, the Company indirectly provides jobs for
hundreds of employees of its contractors.
We are in this together! (“Plaveme v tom spolu!”)
In 2021, the sixth year of the grant programme for active employees entitled “We are in
this together!” saw support provided to 22 projects of the non-profit organisations in which
the Company’s employees are involved in their free time and generally free-of-charge.
The total support to projects amounted to approximately CZK 250 thousand (+ CZK 50
thousand, if compared with 2020).
Assistance was directed at events for people with disabilities, cultural events, projects for
the conservation of the environment, children’s events or activities of sports clubs and
voluntary fire brigades In order for the supported projects to take place, a number of them
had to be modified during the year due to the restrictions resulting from the epidemic
situation.
The Company continues to run the successful programme – in January 2022, it
announced a call for proposals for projects to be implemented in 2022.
Customer satisfaction survey
In autumn 2021, a customer satisfaction survey was run again after two years in locations
where the Company provides its services. 900 households, 100 municipalities and 100
corporate representatives took part in the survey.
Despite globally sensitive situation, results are very good for the Company. Since the last
survey, most indicators have shown a positive trend. 95 % of households regarded
62
Company’s performance as positive, and 97 % of those who were contacted in the survey
were satisfied with water quality. 88 % of municipalities and 98 % of corporate
representative spoke perceived the Company positively.
Education
There has been long-term cooperation between the Company and Technical University
Ostrava, namely the Faculty of Mining and Geology. Thanks to this, a number of the
university’s alumni specialising in water management have found employment in the
Company. Both institutions have also cooperated in the field of scientific research over the
long term.
In cooperation with experts on modern and innovative forms of education, the Company
prepared a programme for secondary school pupils entitled The Tree of Life (Strom
života). The project has been implemented in schools since April 2016. Using an
experience-based approach, the educational programme explains the significance of water
for humans and the environment As a game that addresses the issue in a comprehensive
way, it is the first of its kind in the Czech Republic. For its innovativeness, it won an award
both from the general public and the professionals.
The coronavirus pandemic and the resulting closure of schools meant that in 2021, the
programme was implemented only in certain periods of time when schools were not closed
and lockdown measures did not existed. In 2022, the Company is planning to continue
with the Tree of Life programme, as well as the Oxidian Planet programme, aimed at
pupils in the senior years of primary schools and students of freshman years of multi-
annual grammar schools.
Persons responsible for verification of financial statements:
2019: Deloitte Audit s.r.o.
Karolínská 654/2, 186 00, Praha
Auditor’s name: Petr Michalík
Certificate No.: 2020
Audit date: 2019 Financial Statements, 2 March 2020
2020: Deloitte Audit s.r.o.
Karolínská 654/2, 186 00, Praha
Auditor’s name: Petr Michalík
Certificate No.: 2020
Audit date: 2020 Financial Statements, 30 March 2021
2021: Ernst & Young Audit, s.r.o.
Auditor’s name: Jiří Křepelka
Certificate No.: 2163
Audit date: 2021 financial statements, April 13
th
, 2022
Pursuant to Section 17 of Act No. 93/2009 Coll., the auditor was appointed on 7 May 2021
by the Company’s sole shareholder, AQUALIA CZECH, S. L., acting in the capacity of the
General Meeting.
63
Closing statement
We hereby declare that to the best of our knowledge the Annual Report gives a true and
fair view of the financial position, business activities and results of operations of the
Company for the past reporting period and of the projected financial position, business
activities and results of operations.
Ostrava, dated 17 February 2022
Miroslav Kyncl
Vice-Chairman of the Board of Directors
Miroslav Šrámek
Member of the Board of Directors
64
15. DECLARATION OF THE SUPERVISORY BOARD REGARDING THE FINANCIAL
STATEMENTS FOR 2021, ANNUAL REPORT FOR 2021 AND THE RESULT OF THE REVIEW
OF THE REPORT ON RELATED PARTY TRANSACTIONS FOR 2021
In accordance with Clause 24 (2) (a) and (b) in the Articles of Association the Supervisory
Board reviewed the regular financial statements for the 2021 reporting period. Results of
the review were discussed by the Supervisory Board at its meeting on 25 February 2022.
Lukáš Ženatý
Chairman of the Supervisory Board
65
16. AUDITOR’S REPORT
66
67
68
69
70
71
17. POST BALANCE SHEET EVENTS
No post Balance Sheet events exist that would be significant for purposes of the
Annual Report.
18. APPROVAL OF THE FINANCIAL STATEMENTS
These financial statements were approved for disclosure by the Board of Directors on
17 February 2022.
_______________________________
Miroslav Kyncl
Vice-Chairman of the Board of Directors
_______________________________
Miroslav Šrámek
Member of the Board of Directors
_______________________________
Anatol Pšenička
Managing Director
_______________________________
Halina Studničková
Chief Financial Officer
1
1. BALANCE SHEET AS OF 31.12.2021
As of
As of
See
31 Dec 2021
31 Dec 2020
Chapter
CZK ,000
CZK ,000
Assets (in ,000 CZK)
ASSETS IN TOTAL
9,259,926
8,954,077
Fixed assets
8,420,692
8,099,526
Intangible assets
4.1.1.
57,652
54,752
Property, plant and equipment
4.1.2.
8,034,005
7,687,581
Assets for sale
4.1.4.
4,924
4,376
Rights to use the assets
4.1.3.
324,111
352,817
Current assets
839,234
854,551
Inventories
4.2.1.
16,054
16,423
Other receivables
4.2.2.
28,377
27,193
Unbilled water and sewage tariffs
4.2.3.
271,046
249,197
Trade receivables
4.2.4.
117,163
98,463
Cash and bank accounts
4.2.5.
406,594
463,275
2
As of
As of
31 Dec 2021
31 Dec 2020
CZK ,000
CZK ,000
LIABILITIES (in ,000 CZK)
LIABILITIES IN TOTAL
9,259,926
8,954,077
Equity
2,103,809
1,932,314
Registered capital
4.3.
1,296,909
1,296,909
Retained profit
806,900
635,405
Long-term liabilities
913,029
6,293,747
Reserves
4.4.
25,117
29,312
Liabilities with respect to lease
4.6.
297,642
315,674
Bank loans and issued bonds
4.8.
0
5,381,539
Deferred tax liability
4.9.2.
590,270
567,222
Short-term liabilities
6,243,088
728,016
Reserves
4.4.
4,136
4,589
Trade payables and other payables
4.5.
743,063
628,792
Liabilities with respect to lease
4.6.
29,142
28,882
Bank loans and issued bonds
4.8.
5,458,726
64,575
Payable income tax
4.11.
8,021
1,178
3
2. COMPLETE STATEMENT FOR THE YEAR ENDING 31.12.2021
See
Year 2021
Year 2020
Chapter
CZK ,000
CZK ,000
Income from water tariffs and sewage
charges
4.10.
2,723,915
2,571,437
Other operating income
4.11.
151,798
96,104
Consumption of materials and energies
4.12.
(534,158)
(494,654)
Personnel costs
4.13.
(557,041)
(531,486)
Depreciation
4.1.1, 4.1.2. &
4.1.3.
(463,220)
(443,652)
Other operating expenses
4.14.
(602,341)
(515,920)
Increase/decrease in reserves and
temporary reduction in value of assets
4.15.
10,829
(15,993)
Income from operation
729,782
665,836
Interest and other financial income
4.16.
688
652
Interests and other financial expense
4.16.
(164,981)
(165,136)
Financial income
4.16.
(164,293)
(164,484)
Profit before taxation
565,489
501,352
Income tax
4.9.
(110,829)
(96,831)
Profit after taxation
454,660
404,521
Comprehensive profit after tax for
Company owners
454,660
404,521
Profit per share (in CZK):
3.16.
Elementary profit
131,46
116,97
Diluted profit
131,46
116,97
4
3. CHANGES IN OWN CAPITAL AS OF THE YEAR ENDING 31.12.2021
Registered
capital
Retained profit
Own equity in
total
,000 CZK
CZK ,000
CZK ,000
As of 31. 12. 2019
1,296,909
518,770
1,815,679
Payment of the share in profit based on
the sole shareholder’s decision of 7
May 2020
0
(293,665)
(293,665)
Statute-barred unpaid shares in profit
0
2,027
2,027
Statute-barred unpaid registered
capital
0
3,128
3,128
Statute-barred unpaid reserves
0
624
624
Profit/loss from 2020
0
404,521
404,521
Comprehensive profit after tax made in
2020
0
404,521
404,521
As of 31. 12. 2020
1,296,909
635,405
1,932,314
Payment of the share in profit based on
the sole shareholder’s decision of 7
May 2021
0
(283,165)
(283,165)
Profit/loss from 2021
0
454,660
454,660
Comprehensive profit after tax made in
2021
0
454,660
454,660
As of 31. 12. 2021
1,296,909
806,900
2,103,809
5
4. CASH FLOW FOR THE YEAR ENDING 31.12.2021
Period until
Period until
31 Dec 2021
31 Dec 2020
,000 CZK
(in CZK ,000)
Cash at beginning of the period
463,275
556,976
Cash flow from main business (from
operation)
Profit on ordinary activities before tax
565,489
501,352
Adjustments for non-monetary operations
592,115
619,910
Depreciation of fixed assets
463,220
443,652
Increase/decrease in temporary value of
assets and reserves
(10,829)
15,993
Profit/loss from sale of fixed assets
(23,815)
(2,360)
Paid and received interests
151,282
150,368
Adjustments for other non-monetary
operations
12,257
12,257
Net cash flow from operation before
increase/decrease in working capital
1,157,604
1,121,262
Increase/decrease in working capital
25,352
(17,360)
Increase/decrease in receivables accrued assets
(39,384)
(10,420)
Increase/decrease in payables and accrued
liabilities
64,368
(6,335)
Increase/decrease in stock
368
(605)
Net cash flow from operation before tax
1,182,956
1,103,902
Interests paid
(141,750)
(141,750)
Interest with respect to lease
(9,543)
(9,244)
Interests received
11
626
Paid income tax on ordinary activities
(80,938)
(93,168)
Net cash flow from operation
950,736
860,366
Expenses on acquisition of fixed assets
(725,586)
(638,787)
Income from sale of fixed assets
27,255
2,352
Net cash flow from investment
(698,331)
(636,435)
Instalments with respect to lease payables
(25,921)
(23,967)
Paid shares in profit
(283,165)
(293,665)
Net cash flow from financial transactions
(309,086)
(317,632)
Net change in cash
(56,681)
(93,701)
Cash at the end of the period
406,594
463,275
6
5. ANNEX TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER
2021
CONTENTS
1. GENERAL INFORMATION ....................................................................................................... 8
1.1. INCORPORATION AND CHARACTERISTICS OF THE COMPANY ................................... 8
1.2. ORGANISATION STRUCTURE.................................................................................... 8
1.3. IDENTIFICATION OF THE GROUP .............................................................................. 9
2. USING THE NEW AND AMENDED INTERNATIONAL FINANCIAL STATEMENTS
REPORTING STANDARDS ...................................................................................................... 9
3. IMPORTANT ACCOUNTING RULES AND PROCEDURES .................................................... 10
3.1. INTANGIBLE ASSETS ............................................................................................... 11
3.2. PROPERTY, PLANT AND EQUIPMENT ..................................................................... 11
3.3. CASH AND CASH EQUIVALENTS ............................................................................. 12
3.4. INVENTORIES ........................................................................................................... 12
3.5. RECEIVABLES............................................................................................................... 12
3.6. TRADE PAYABLES .................................................................................................... 13
3.7. BONDS ...................................................................................................................... 13
3.8. RESERVES ............................................................................................................... 13
3.9. CONVERSION OF FOREIGN CURRENCY INTO CZK ................................................ 14
3.10. LEASE ....................................................................................................................... 14
3.11. TAXES ....................................................................................................................... 15
3.12. INCOME .................................................................................................................... 16
3.13. SEGMENTS ............................................................................................................... 17
3.14. REAL VALUE OF THE FINANCIAL INSTRUMENTS ................................................... 17
3.15. LOAN EXPENSES ........................................................................................................... 17
3.16. PROFIT PER SHARE AND DIVIDEND........................................................................ 17
3.17. SIGNIFICANT ESTIMATES ........................................................................................ 18
4. ADDITIONAL INFORMATION TO THE FINANCIAL STATEMENTS AND COMPLETE
STATEMENT .......................................................................................................................... 19
4.1. FIXED ASSETS ........................................................................................................... 19
4.1.1. Intangible assets .................................................................................................................. 19
4.1.2. Property, plant and equipment .............................................................................................. 20
4.1.3. Assets with respect to the right to use ................................................................................... 22
4.1.4. Fixed assets held for sale ..................................................................................................... 23
4.2. CURRENT ASSETS ...................................................................................................... 23
4.2.1. Inventory .............................................................................................................................. 23
4.2.2. Other receivables ................................................................................................................. 23
4.2.3. Unbilled water and sewage tariffs .......................................................................................... 23
4.2.4. Age of trade receivables ....................................................................................................... 24
4.2.5. Cash .................................................................................................................................... 24
4.3. EQUITY ..................................................................................................................... 25
4.4. RESERVES ............................................................................................................... 26
4.5. TRADE PAYABLES AND OTHER PAYABLES ............................................................ 27
4.6. LIABILITIES RESULTING FROM LEASE .................................................................... 27
7
4.7. LEASE-RELATED AMOUNTS IN THE REPORTING PERIOD ...................................................... 29
4.8. BANK LOANS AND ISSUED BONDS ......................................................................... 29
4.8.1. Analysis of maturity dates for financial payables .................................................................... 30
4.9. INCOME TAX ............................................................................................................. 31
4.9.1. Due tax ................................................................................................................................ 31
4.9.2. Deferred tax ......................................................................................................................... 31
4.10. INCOME FROM WATER TARIFFS AND SEWAGE CHARGES ................................... 32
4.11. OTHER OPERATING INCOME .................................................................................. 32
4.12. CONSUMPTION OF MATERIALS AND ENERGIES ................................................... 33
4.13. PERSONNEL COSTS ................................................................................................ 33
4.14. OTHER OPERATION EXPENSES.............................................................................. 35
4.15. CREATION OF RESERVES AND TEMPORARY REDUCTION IN VALUE OF THE ASSETS ................. 36
4.16. FINANCIAL REVENUES AND EXPENSES ................................................................. 36
4.17. TRANSACTIONS WITH RELATED PERSONS ........................................................... 36
5. RISKS RELATING TO THE FINANCIAL STATEMENTS ......................................................... 40
6. SENSITIVITY ANALYSIS ........................................................................................................ 41
7. CONDITIONAL LIABILITIES ................................................................................................... 41
8. COURT DISPUTES ................................................................................................................ 43
9. POST BALANCE SHEET EVENTS ......................................................................................... 45
10. APPROVAL OF THE FINANCIAL STATEMENTS ................................................................... 46
8
1. GENERAL INFORMATION
1.1. INCORPORATION AND CHARACTERISTICS OF THE COMPANY
Severomoravské vodovody a kanalizace Ostrava a.s. (“SmVaK”) was incorporated
on 1 May 1992 under ID 45193665.
It is a joint-stock company.
Below are main objects of Company’s business:
- Production and distribution of drinking water and service water
- Discharge and treatment of wastewater
- Construction of water facilities
On 23 July 2019 the General Meeting resolved pursuant to § 375 et seq. in the
Act on Business Corporations on forced transfer of the title to all securities onto
the main shareholder. This means the director of the multilateral trading system,
RM-SYSTÉM, česká burza cenných papírů a.s, decided in his decision No. 8/2019
of 28 August 2019 to remove the securities from the trading system as of 20
September 2019.
The Company is based in Ostrava, 28. října 1235/169, Mariánské Hory, 709 00
Czech Republic.
Structure of shareholders as of 31 December 2021 is as follows:
Shareholder
Share in the registered capital
AQUALIA CZECH S.L.
100 %
Total
100 %
Figures in these financial statements are in CZK ,000 (thousands Czech Crown)
except for the profits per share which are in CZK.
1.2. ORGANISATION STRUCTURE
The Company is divided into four internal organisational units:
1. Headquarters
1.1. Managing Director’s Division
1.2. Chief Finance Officer’s Division
1.3. Technical Director’s Division
1.4. Administration Director’s Division
1.5. International Development Department
2. Water Networks Director’s Division
3. Sewage Systems Director’s Division
4. OOV Director’s Division (Ostrava Area Water System).
9
1.3. IDENTIFICATION OF THE GROUP
Directly controlling person:
- AQUALIA CZECH, S. L.
As of 31 December 2021 the Company does not own any share in any other
company.
2. USING THE NEW AND AMENDED INTERNATIONAL FINANCIAL
STATEMENTS REPORTING STANDARDS
In 2021 the Company was using the new and amended standards and
interpretation issued by the International Accounting Standards Board (“IASB“) and
the International Financial Statements Reporting Interpretation Committee
(“IFRIC“) in IASB which regulate business.
Standards and interpretation in force during the regular reporting period
The reporting year saw the first year of force of modification of the following
standards issued by the International Accounting Standards Board (“IASB“)
approved for application in EU:
Modification of IFRS 4 Insurance Contract – extension of the temporary
exception with respect to application of IFRS 9 – adopted by EU on 15
December 2020 (in force for the reporting period starting 1 January 2021 or
later).
Modification of IFRS 9 Financial Instruments, IAS 39 Financial
Instruments: Recognition and Measurement, IFRS 7 Financial
Instruments: Disclosures, IFRS 4 Insurance Contracts and IFRS 16
Leases – Reform of reference interest rates – phase 2 – adopted by EU on
13 January 2021 (in force for the reporting period starting 1 January 2021 or
later).
Introduction of the modified standards did not have any significant impacts on
Company’s accounting rules.
New standards and modifications of the existing standards which have not
been applied by the Company yet
As of the date of approval of the Financial Statement, the following new standards
were issued and the existing standards were modified but have not entered into
force yet:
IFRS 17 Insurance Contracts* and modifications of IFRS 17 (in force for
the reporting period starting 1 January 2023 or later),
10
Modifications of IFRS 3 Business Combinations* – Reference to the
Conceptual Framework (in force for the reporting period starting 1 January
2022 or later),
Modification of IFRS 10 Consolidated Financial Statements, IAS 28
Investments in Associates and Joint Ventures* – Sale of assets between
the investor and an associate or joint venture (the date when the modification
enter into force has been postponed until the equivalency method project is
completed),
Modification of IAS 1 Presentation of Financial Statements* –
Classification of short-term and long-term liabilities, and postponement of
the date when the modification enters into force (in force for the reporting
period starting 1 January 2024 or later),
Modification of standard IAS 16 Property, Land and Equipment* – Income
before intended use (in force for the reporting period starting 1 January 2022
or later),
Modification of IAS 37 Provisions, Contingent Liabilities and Contingent
Assets* – Onerous Contracts – costs of fulfilling a contract (in force for the
reporting period starting 1 January 2022 or later),
Modifications of various standards „Improvements in IFRS (2018–
2020)“ * resulting from the project aimed at year improvements in IFRS
(IFRS 1, IFRS 9, IFRS 16 and IAS 41), the objective being to remove
inconsistencies between standards and to clarify the text. (Modifications of
IFRS 1, IFRS 9 and IAS 41 become effective for the period starting 1 January
2022 or later. Modification of IFRS 16 relate only to the generic case so the
date when it enters into force has not been set yet.)
*not approved yet for application in the European Union
The Company has made decision not to apply the standards and modifications of
the existing standards prior the date when they enter into force. The Company’s
management team has analysed the situation and believes that the first adoption
of the standards and modifications of the existing standards will not have any
significant impact on the Company’s financial statement.
3. IMPORTANT ACCOUNTING RULES AND PROCEDURES
The financial standards are prepared in accordance with the International Financial
Reporting Standards, IFRS adopted by EU on the principle of historical costs.
The financial statements were prepared pursuant to laws and regulations of the
Czech Republic and were approved by the Board of Directors on 17 February
2022.
11
3.1. INTANGIBLE ASSETS
The intangible assets which were acquired as separate assets are posted in
acquisition prices after deduction of cumulated amortisation and loss from reduced
value. Normal amortisation and depreciation is used throughout the expected
service life of the assets. The expected service life and amortisation/depreciation
methods are validated always by the end of each accounting period where impacts
of any changes in estimates are posted retrospectively.
Should the net book value of the asset exceed the estimated value, an estimated
entry is used to make the net book value be in line.
Straight-line depreciation of fixed intangible assets is used, considering the
expected service life as follows:
%
Software
25
Valuable rights
10 to 20
3.2. PROPERTY, PLANT AND EQUIPMENT
The cost including acquisition expenses minus adjustments minus the posted loss
from reduced value are applied for the property, plant and equipment used for
provision of services or for administrative purposes.
Company’s assets include particularly waste treatment plants, water supply
pipelines, wastewater treatment plants and sewage pipelines.
The costs of the assets, except for land and investments in progress, are
depreciated for the estimated service line. Straight-line depreciation is used as
follows:
%
Buildings
1 to 5
Production equipment – plants and devices
4 to 25
IT and IS
17 to 25
Transport vehicles - motor vehicles
4 to 25
Inventory
4 to 12
Fixed tangible assets where the acquisition price is between CZK 30,000
and CZK 40,000
25
Water meters
17
Assets acquired by financial lease are depreciated for the estimated service life
where the depreciation method is same as that used for the assets that are owned
by the Company.
12
Any loss or profit made from sale or retirement of an asset is the difference
between revenue from sale and the net book value of such asset as of the date of
the sale. Such loss/profit is posted in the complete income statement.
When taking stock, the net book values of the assets and their service lives are
evaluated pursuant to IAS 36 – Impairment of Assets. Pursuant to IAS 36 the
Company divided its assets into groups which could be regarded as separate cash-
generating units: the water networks, sewage systems and the other assets. In
each such group of assets, the impairment was considered using the following
indications of impairment:
- External indications: market value decline for the group of assets, negative
changes in markets, increases/decreases in market interest rates, disproportion
between market capitalisation and valuation of net assets in accounts.
- Internal indications: obsolescence or physical damage, asset is held for
disposal, asset is held for sale, asset does not generate sufficient income, asset
is not used sufficiently, the asset’s purpose of use has changed.
Having evaluated the assets, no indications have been revealed for impairment of
the asset groups. Only internal indications have been revealed for certain items in
the asset groups. Impairment of the assets is the difference between the net book
value of the asset and the recoverable amount from such asset. The recoverable
amount from such asset is either the net selling price of the asset or the value from
use of such asset, whichever is higher. Such decrease in the value of assets is
posted using the temporary reduction in the value of assets.
3.3. CASH AND CASH EQUIVALENTS
Cash and cash equivalents are cash in hand and cash in banks. The cash and
cash equivalents can be immediately exchanged for the known sum in cash and a
negligible risk of exchange is typical of them. The real value of the cash and cash
equivalents is not different from their net book value.
3.4. INVENTORIES
The stock is posted either at the acquisition price or at the net realisable cost,
whichever is lower. The acquisition price includes the price of acquisition of such
asset including transport costs and overheads and direct wages, if any, relating to
maintaining the stock in the current condition. The Company has been using the
weighed arithmetic average method for stocktaking. The net realisable value is the
estimated net selling price minus all estimated costs for completion, and costs
relating to marketing, sale and distribution of such asset.
3.5. RECEIVABLES
First, receivables are posted using the real values. Then, estimates and
adjustments are made if any receivables are bad and/or can not be recovered.
13
Such temporary reduction of the value is calculated using the model of expected
credit loss. Bad debts are written off once debtor’s insolvency procedure is closed.
Because maturity terms for receivables are short, the real value of the receivable
is almost the book value.
Creation of temporary reduction of the value with respect to the receivables
depends on the analysed maturity date of the receivable. The reduced value is
determined in the debt recovery test.
If the receivables are overdue for less than 180 days, the temporary reduction in
the value is 5 % of the nominal value of such receivable (6 % in 2020). If the
receivables are overdue for more than 180 days but less than 365 days, the
temporary reduction in the value is 54 % of the nominal value of such receivable
(65 % in 2020). If the receivables are overdue for more than 365 days, the
temporary reduction in the value is 99 % of the nominal value of such receivable
(99 % in 2020).
The temporary reduction of the value is created using the method above because
the differences in credit risks for the receivables are very small. If there is a specific
credit risk (for instance, a debtor faces a bankruptcy), an individual approach is
used to the temporary reduction of the value.
3.6. TRADE PAYABLES
Trade payables are primarily evaluated in their real values. Because such
payables are short-termed, the real value is almost the book value.
3.7. BONDS
The Company issued registered bond certificates. The bonds are traded in at the
main market of Burza cenných papírů v Praze. Initially, issuance of the bonds is
posted in the real value minus transaction costs (in long-termed payables).
Then, after initial recognition, the Company evaluates the issued bonds using the
net book value (the accrued value) and the effective interest rate.
The accrued interest payable in 2022 is posted as the short-termed payables.
3.8. RESERVES
Reserves are created if the Company reports a payable because of a past event
and such payment is estimated to result probably in outflow of economic
advantages. The Company has been creating reserves for future employee
benefits (benefits paid for old age retirement, anniversaries in their personal lives),
for changes in the Company’s organisational structure, and for other reserves.
Reserves are posted using the best estimates by the Company management team
which should estimate probable costs to be incurred by the Company in the future
in order to settle such payable.
14
The reserves are long-termed or short-termed. The long-termed reserves are
discounted based to the current value.
3.9. CONVERSION OF FOREIGN CURRENCY INTO CZK
The financial statements are in the currency of the primary economic environment
where the entity carries on its business (in CZK).
Transactions in books made in any other currency than CZK are posted using the
exchange rate applicable as of the date of the transaction. Cash, receivables and
payables in foreign currency are converted as of the date of the financial
statements using the exchange rates applicable as of that date. Non-cash items
which are evaluated in historic costs in foreign currency are not converted. Losses
or profits made from such conversion are posted in the complete income statement
for the reported period.
3.10. LEASE
The lessee posts the asset consisting in the right to use, as well as the liability
resulting from the lease. The asset consisting in the right to use is posted similarly
as fixed tangible assets. Depreciation is similar as well. In the first entry, the lease
liabilities represent the current value of the liabilities resulting from lease
instalments throughout duration of the lease and the discounted implicit rate of
lease, if it can be determined easily. If the lease rate cannot be determined easily,
the lessee will use its incremental lease interest rate. In the first entry of the lease
liability, only the following is posted: the fixed lease instalments and variable
instalments which depend on development of the rate/index. The variable lease
fee which does not depend on the index/rate is not included into valuation of the
lease liability and asset consisting in the right to use. The lease fee is posted in the
complete income statement as “other operating expenses” for the period when the
situation or circumstance occurred, which resulted in such expenses.
The Company posts the leased assets as the right to use the assets, and the
related liabilities as of the date when the lease assets became fit for use. Each
lease instalment consists of the liability instalment and financial expense. The
financial expense is posted as an expenses and is reported as “interest and other
financial expense” throughout duration of the lease. The liability is paid up using a
constant interest rate for the remaining liability in each reporting period.
The Company shall re-valuate the lease liability and post necessary changes in
the assets with respect to the right to use if:
- there is a change in lease duration,
- there are changes in lease payments because of changes in the reference index,
- the lease contract was modified.
15
First, the assets are evaluated using the current value of the lease payments. When
valuating the assets, following items should be included:
all lease instalments paid as of the start of the lease or earlier, minus all
incentives received with respect to the lease,
any initial direct expenses,
expenses needed for reaching the required condition of the asset at the end of
the lease.
Then, the assets which represent the right to use are posted in the balance sheet
as the right to use the asset. The assets are valuated using the cost of asset minus
adjusting entries and cumulated loss from the reduced value. Adjustments are also
made in case of re-valuation and modifications of lease contracts. Assets that
represent the rights to use are depreciated using straight-line depreciation
throughout the service life or the assets or throughout duration of the lease,
whichever is shorter.
Payments made with respect to short-term rent and lease of all low-value assets
are posted evenly as an expense in the complete income statement under “other
operating expenses”.
Short-time rent is lease with duration of 12 months or less.
3.11. TAXES
The final tax in the complete income statement is the payable tax for the accounting
period and increase/decrease in the deferred tax.
The tax payable for the accounting period depends on the taxable profit and tax
base. The tax base is different from the profit before taxation which is shown in the
complete income statement because the tax base does not include earnings and
expenses which are taxable or recognised in other periods. Furthermore, the tax
base does not include items which are not taxable and those which are not tax
deductible. The tax payable is calculated using the tax rate applicable as of the
date of the financial statements.
Deferred tax payables and tax receivables which result from differences between
the tax assets and tax liabilities in the financial statements and which correspond
to the tax base of such assets and liabilities used for calculation of the taxable
profit, are posted using the balance sheet payable approach. The deferred tax
payables are posted for each temporary difference, while the deferred tax
receivables are posted in the scope in which it is likely that the taxable profit will
exist against which the deductible temporary difference could be set off. In case of
lease contracts where the Company/Group is the lessee, the temporary
differences are determined as a total for the right to use and the lease liability
arising from the lease contract.
16
The book value of the deferred receivable is evaluated as of each balance day and
is reduced in the scope in which it is likely that no sufficient taxable profit would
exist which would make it possible to set off the receivable or a part of such
receivable.
The deferred tax is calculated using the tax rates which are expected to apply in
the period when the assets will be realised, or when the liabilities will be settled. In
2021 the deferred tax was converted with respect to the tax rate applicable in 2022.
This conversion was made for all temporary differences (19 % - same as in 2020).
The deferred tax is shown in the complete income statement.
The deferred tax receivables and deferred tax payables are set off with each other
if a legally enforceable claim exists for offsetting of the tax receivable for the regular
period against the tax payable for the regular period, if such tax is collected by the
same revenue authority and if the Company intends to settle its tax receivables
and the tax payables in the regular period in the same amount.
3.12. INCOME
The income is posted using the real value at the moment of the supply from past
or supply to be supplied in the future. Such income is the income from sale of
goods and services within ordinary business of the Company, minus discounts,
value added tax and other taxes relating to the sale.
The Company posts the income from contracts signed with the customers if:
- the contract is identified,
- the liability to provide a supply is identified,
- the price of transaction is quoted,
- The transaction prices are allocated to each liability to provide a supply,
- the income is accepted upon fulfilment of the liability to provide a supply.
Income from water tariffs and those from sewage charges are posted at the
moment when drinking water is supplied in the water network or when wastewater
is discharged in sewage systems. The solidary water tariff and sewage charge
were determined pursuant to the applicable Decree issued by the Czech Republic
Ministry of Financed under No. 01/2021 on 7 December 2020.
Contingent assets with respect to the water tariff and sewage charge for water
supplied or wastewater discharged in 2021 which will be billed in 2022 were
calculated using the average data read from gauges during the past billing period
per day multiplied with the number of days when such services were provided from
the last meter reading until 31 December 2021. Such contingent items are shown
in the balance sheet as non-billed water tariff and sewage charge.
17
3.13. SEGMENTS
Pursuant to IFRS 8 – Operation Segments, the Company regards its activities as
one segment only. Revenues generated from other activities are negligible and are
regarded as non-core business. From the point of view of geography, the Company
serves in particular the Moravian-Silesian region, which for purposes of income
reporting comprises also certain close-to-border regions in Poland. Drinking water
supplied to Poland represents ca. 1.8 % of total revenues from water tariff, sewage
charged and bulk water. None of the customers generate more than 10 % of the
revenues.
3.14. REAL VALUE OF THE FINANCIAL INSTRUMENTS
The Company does not own any financial instruments which would be evaluated
using the real value after initial recognition. The real value of the financial
instruments is almost same as their book value, unless stated otherwise.
3.15. LOAN EXPENSES
The loan expenses which are directly related to acquisition, construction or
production of an eligible asset are capitalised using a portion of the acquisition
costs for that asset until the moment when the asset is prepared to a considerable
extend for the intended use of sale. Any other loan expenses are shown in the
complete profit and loss account for the period where such cost occurred. No part
of the loan expenses in these financial statements is related to acquisition of fixed
assets and fulfills requirements for capitalisation of the loan expenses in the
acquisition price of the asset.
3.16. PROFIT PER SHARE AND DIVIDEND
The calculated basic profit and diluted profit per share are same. The profit per
share is calculated as follows:
(In CZK ,000 except for the profit per share in CZK)
2021
2020
Profit made in the current period
454,660
404,521
Average number of shares during the
period
3,458,425
3,458,425
Profit per share (basic and diluted
profits)
131.46
116.97
Share in profit per 1 share
To be resolved by the
General Meeting
81.88
Decisions on dividends are made by the authorised bodies of the Company within
distribution of the profit made by the Company during the reported period.
18
3.17. SIGNIFICANT ESTIMATES
When applying the accounting rules, the management team is required to make
certain guesses and to prepare estimates and assumptions with respect to the
assets and liabilities if such information is not now available from other sources.
The estimates, guesses and assumptions are based on experience from past
periods and on other factors which are regarded as relevant. Real figures may be
different from such estimates. The estimates, guesses and assumptions are
subject to regular validation. Corrections in such accounting estimates are made
in the period when such correction was made (if the correction affects that period
only) or in the period when such correction was made as well as in the future
periods (if the correction affects both the current and future periods).
Estimates for non-billed water tariffs and sewage charges are made on the basis
on experience from past periods and on other factors which are regarded as
relevant. The real figures can be different from the estimated income from water
tariffs and sewage charges. The estimates, guesses and assumptions are subject
to regular validation.
19
4. ADDITIONAL INFORMATION TO THE FINANCIAL STATEMENTS AND
COMPLETE STATEMENT
4.1. FIXED ASSETS
4.1.1. Intangible assets
Software
Valuable
rights
Intangible
assets in
progress
Total
(,000 CZK)
(,000 CZK)
(,000 CZK)
(,000
CZK)
COSTS
As of 31. 12. 2019
239,442
29,300
14,412
283,154
Increase
9,152
6,525
18,163
33,840
Decrease
(101)
0
(15,677)
(15,778)
As of 31. 12. 2020
248,493
35,825
16,898
301,216
Increase
8,816
4,385
14,746
27,947
Decrease
(1,505)
0
(13,201)
(14,706)
As of 31. 12. 2021
255,804
40,210
18,443
314,457
ADJUSTING ENTRIES
As of 31. 12. 2019
(228,202)
(6,385)
0
(234,587)
Depreciation per year
(10,622)
(1,356)
0
(11,978)
Eliminated upon retirement
101
0
0
101
As of 31. 12. 2020
(238,723)
(7,741)
0
(246,464)
Depreciation per year
(10,294)
(1,552)
0
(11,846)
Eliminated upon retirement
1,505
0
0
1,505
As of 31. 12. 2021
(247,512)
(9,293)
0
(256,805)
BOOK VALUE
As of 31. 12. 2019
11,240
22,915
14,412
48,567
As of 31. 12. 2020
9,770
28,084
16,898
54,752
As of 31. 12. 2021
8,292
30,917
18,443
57,652
In 2021, the Company acquired the non-tangible assets at CZK 99 thousand – they
were posted directly as expenses (2020: CZK 155 thousand).
The value of intangible assets increased in particular thanks to extension of SW
Monet and extension of the web application used for planning of works and
encumbrances.
In 2021, the Company posted CZK 11.846 million as depreciation of intangible
assets in the complete income statement (2020: CZK 11.978 million).
20
4.1.2. Property, plant and equipment
Land
Plant
Equipment
and
devices
Other
assets
Tangible
assets under
construction,
including
advances
Total
(,000
CZK)
(,000
CZK)
(,000 CZK)
(,000
CZK)
(,000 CZK)
(,000 CZK)
COSTS
As of 31. 12. 2019
164,839
13,947,706
2,467,952
867
434,760
17,016,124
Transfer into rights to use
0
(14,351)
(2,541)
0
0
(16,892)
Increase
1 ,764
380,257
104,934
0
713,138
1,200,093
Decrease
(247)
(7,095)
(42,893)
0
(539,436)
(589,671)
As of 31. 12. 2020
166,356
14,306,517
2,527,452
867
608,462
17,609,654
Transfer into assets for sale
0
4,933
927
0
0
5,860
Increase
2,125
818,747
168,467
0
760,231
1,749,570
Decrease
(798)
(27,485)
(74,045)
(11)
968,983
(1,071,322)
As of 31. 12. 2021
167,683
15,102,712
2,622,801
856
399,710
18,293,762
ADJUSTING ENTRIES AND
REDUCTION IN VALUE
Adjusting entries as of
31.12. 2019
0
(7,585,048)
(1,973,407)
0
0
(9,558,455)
Transfer into rights to use
0
7,112
2,382
0
0
9,494
Depreciation per year
0
(313,022)
(90,118)
0
0
(403,140)
Eliminated upon retirement
0
6,652
32,265
0
0
38,917
Adjusting entries as of
31.12. 2020
0
(7,884,306)
(2,028,878)
0
0
(9,913,184)
Transfer into assets for sale
0
(2,469)
(917)
0
0
(3,386)
Depreciation per year
0
(329,417)
(96,704)
0
0
(426,121)
Eliminated upon retirement
0
22,048
68,963
0
0
91,011
Adjusting entries as of
31.12. 2021
0
(8,194,144)
(2,057,536)
(10,251,680)
Reduction in value as of
31. 12. 2019
0
(11,713)
(258)
0
0
(11,971)
Transfer into assets for sale
0
2,944
78
0
0
3,022
Creation
0
(5)
0
0
0
(5)
Withdrawal
0
0
65
0
0
65
Reduction of value as of
31. 12. 2020
0
(8,774)
(115)
0
0
(8,889)
Transfer into assets for sale
0
(2,944)
(78)
0
0
(3,022)
Creation
0
0
0
0
0
0
Withdrawal
0
3,719
115
0
0
3,834
Reduction in value as of
31. 12. 2021
0
(7,999)
(78)
0
0
(8,077)
21
BOOK VALUE
As of 31. 12. 2019
164,839
6,350,945
494,287
867
434,760
7,445,698
As of 31. 12. 2020
166,356
6,413,437
498,459
867
608,462
7,687,581
As of 31. 12. 2021
167,683
6,900,569
565,187
856
399,710
8,034,005
Advances for acquisition of the fixed tangible assets are CZK 0.902 million (as
of 31.12. 2020: CZK 8.150 million).
As of 31. 12. 2021, CZK 8.077 million was posted as the temporary reduction in
value for fixed assets unused now and in the future (as of 31. 12. 2020: CZK
11.911 million). The temporary reduction in value was posted in particular with
regards to buildings and structures.
Increase/decrease in the temporary reduction in the value is posted in the complete
income statement as creation and withdrawal of reserves and temporary reduction
in value of the assets.
In 2021, the tangible assets acquired by the Company which were posted directly
as expenses were CZK 10.328 million (in 2020: CZK 10.499 million). These are
small and short-term tangible assets which include other movables and sets of
movables, the usable life of which is more than one year where such assets are
not shown among the fixed assets.
In 2021, CZK 426.121 million was posted in the complete income statement as
depreciation of the assets (in 2020: CZK 403.140 million).
The reason for increase in the fixed tangible assets is mainly acquisition of new
assets because of reconstruction of water networks, sewage systems and facilities
and equipment in water treatment plants and wastewater treatment plants.
The net book value of the fixed tangible assets as of 31.12. 2021, this means CZK
196.287 million (as of 31.12. 2020: CZK 211.118 million) includes the net book
value of the assets which were acquired as contribution from the municipalities into
own capital of the Company (in 1998 and 1999). As of 31.12. 2021, the Company
properly filed all applications to enter the right to property at the Land Registry.
Received subsidies
The Company did not receive any subsidies for acquisition of fixed assets in 2021.
The subsidies received in previous years were posted as a decrease in acquisition
price of Company’s assets. In 2021, the depreciation is lower because the costs
were reduced thanks to the received subsidy of CZK 9.440 million (in 2020: CZK
9.440 million).
Fixed assets under pledge
22
As of 31.12.2021, no Company’s assets are under pledge.
4.1.3. Assets with respect to the right to use
The financial statement includes a separate item for the asset with respect to the
right to use:
(CZK ,000)
31. 12. 2021
31. 12. 2020
Assets – the right to use (classified by asset
classes)
Buildings and constructions
259,668
264,331
Vehicles
59,260
75,719
Other
5,183
12,767
Total
324,111
352,817
(CZK ,000)
Buildings
and
constructio
ns
Vehicles
Other
Total
As of 31. 12. 2019 – IFRS 16
234,856
61,092
15,176
311,124
Increase – new lease
contracts
41,124
31,741
0
72,865
Terminated lease contracts
0
(60)
(2,578)
(2,638)
Depreciation
(11,649)
(17,054)
169
28,534)
As of 31. 12. 2020 – IFRS 16
264,331
75,719
12,767
352,817
Increase – new lease contracts
8,552
3,251
0
11,803
Terminated lease contracts
0
0
(15,256)
(15,256)
Depreciation
(13,215)
(19,710)
7,672
(25,253)
As of 31. 12. 2021 – IFRS 16
259,668
59,260
5,183
324,111
The Company leases properties (the office building), vehicles, and infrastructure
assets.
The lease is negotiated individually and contains a wide range of terms and
conditions (including the rights to terminate and renew the lease).
Below is a general summary of lease features:
The office building is rented for 20 years. The rent agreement can be
extended.
Lease instalments are increased pursuant to the define formula.
The rain water tank in Karviná is rented for 10 years.
Vehicles are rented for a fixed period of time: 3 to 6 years.
23
Infrastructure assets are used by the Company pursuant to operation
contracts that were followed by agreements to purchase the assets.
4.1.4. Fixed assets held for sale
As of 23 July 2020 the Company’s Board of Directors resolved to sell its
recreational facilities. As of 31 December 2020 the recreational facility in Nová Ves
was not sold.
(CZK ,000)
Recreational facility
Net book value as of
31. 12. 2021
Nová Ves
4,924
Total
4,924
4.2. CURRENT ASSETS
4.2.1. Inventory
The Company reduced the value of unused inventories: CZK 0.212 million (as of
31.12. 2020: CZK 0.212 million). The investories are mostly chemical agents and
small water components in warehouses. Consumption of materials at stock is
shown within consumption of water, materials and chemical. In 2021, it was CZK
133.902 mil. (as of 31.12. 2020: CZK 125.875 million).
4.2.2. Other receivables
(CZK ,000)
As of 31. 12. 2021
As of 31. 12. 2020
Other receivables
Other receivables
19,447
19,845
Prepaid expenses
8,930
7,348
Current receivables in total
28,377
27,193
Other receivables are the advances paid for the rent with respect to operation of
the rented infrastructure assets.
4.2.3. Unbilled water and sewage tariffs
Calculation of the amounts (as of 31.12.2021: CZK 271.046 million, as of 31.12. 2020:
CZK 249.197 million) is described in Chapter 3.12.
24
4.2.4. Age of trade receivables
(CZK ,000)
Year
Category
Before due
date
After due date
After due
date in
total
Total
0 - 90
days
91 - 180
days
181 - 360
days
1-2
years
2 and
more
years
31. 12. 2020
Gross value
83,766
17,039
964
1,096
2,802
9,828
31,729
115,495
Reduction in
value
0
(2,739)
(779)
(1,013)
(2,776)
(9,725)
(17,032)
(17,032)
Net value
83,766
14,300
185
83
26
103
14,697
98,463
31. 12. 2021
Gross value
102,434
15,270
563
472
2,475
10,633
29,413
131,847
Reduction in
value
0
(985)
(282)
(413)
(2,448)
(10,556)
(14,684)
(14,684)
Net value
102,434
14,285
281
59
27
77
14,729
117,163
2021
Year-to-year
impact of
reduction in
value
0
(1,754)
(497)
(600)
(328)
831
(2,348)
(2,348)
Having tested the collectability and receivables, the following reduction in value of
overdue receivables was posted:
(CZK ,000)
Receivables after due
date
As of 31. 12. 2021
As of 31. 12. 2020
Rate
Reduction in
value
Rate
Reduction in
value
Specific trade receivables
674
2,749
More than 365 days
99 %
12,965
99 %
12,492
180–365 days
54 %
254
65 %
711
Less than 180 days
5 %
791
6 %
1,080
Total
14,684
17,032
4.2.5. Cash
(CZK ,000)
As of 31.12. 2021
As of 31.12. 2020
Cash and cash equivalents
Cash in hand
401
416
Cash in banks
406,193
462,859
Current financial assets in total
406,594
463,275
The balance of the current financial assets is the total balance of cash and cash
equivalents in the cash flow statement.
25
4.3. EQUITY
Own capital comprises the registered capital and retained profit.
The Company’s registered capital is 1,296,909 ths. CZK. It has been fully paid up
and consists of 3,037,040 registered shares with the nominal value of CZK 375
each, and 421,385 bearer shares with the nominal value of CZK 375 each.
In 2020, the profit after tax is CZK 404.521 million. It was approved and
distributed by the decision made by the Company’s sole shareholder on 7 May
2021 as follows:
(CZK ,000)
2021
Profit made in 2020
404,521
Shares in profit
283,165
Profit carried forwarded among retained profits of past years
121,356
The Company uses the total debt indicator to monitor its capital structure. This
indicator is the net debt to (own capital plus net debt). It included the registered
capital as of 31.12. 2020 and the net debt. As of 31.12. 2021, the total debt
indicator is 74.42 % (as of 31. 12. 2020: 75.50% - see the table below).
(CZK ,000)
As of 31.12. 2021
As of 31.12. 2020
Bank loans and issued bonds
5,458,726
5,446,114
Trade payables and other payables
1,069,847
973,348
Cash in hand and cash in banks
(406,594)
(463,275)
Net debt
6,121,979
5,956,187
Equity
2,103,809
1,932,314
Own capital + net debt
8,225,788
7,888,501
Total debt indicator
74.42
75.50 %
26
4.4. RESERVES
(CZK ,000)
Reserve for employee
benefits
Reserves in
total
Balance as of 31.12. 2019
23,444
23,444
Creation of reserves
13,053
13,053
Using of reserves
(2,596)
(2,596)
Balance as of 31.12. 2020
33,901
33,901
Creation of reserves
0
0
Using of reserves
(4,648)
(4,648)
Balance as of 31.12. 2021
29,253
29,253
The reserve for employee benefits is used for employees who celebrate their work
anniversaries or retire from work. The sum in the reserve depends on the collective
agreement and is based on the age of employees and expected use of the reserve
for employees/groups of employees. The value of value in the course of time is
also considered there.
In the balance sheet, the reserves are divided into current and non-current
reserves by the expected time of use.
(, 000 CZK) CZK)
Reserve for employee
benefits
Reserves in
total
Balance as of 31.12. 2020
33,901
33,901
Current reserves
4,589
4,589
Non-current reserves
29,312
29,312
(, 000 CZK) CZK)
Reserve for employee
benefits
Reserves
in total
Balance as of 31.12. 2021
29,253
29,253
Current reserves
4,136
4,136
Non-current reserves
25,117
25,117
27
4.5. TRADE PAYABLES AND OTHER PAYABLES
(CZK ,000)
As of
31. 12. 2021
As of 31.12.
2020
Current trade payables and other payables
Trade payables
612,458
530,193
Payables to employees
43,162
34,944
Social security insurance and health insurance to be
paid
17,180
14,116
Other current payables
70,263
49,539
Current trade payables and other payables in total
743,063
628,792
In the Company, there were not any trade payables after maturity dates as of
31.12.2021 (as of 31.12. 2020: CZK 0).
The current payables included the payable fee for consumption of ground water
and fee for pollution of wastewater (as of 31.12. 2021: CZK 11.108 million, as of
31. 12. 2020: CZK 19.506 million) and accrued liabilities (as of 31.12.2021: CZK
43.158 million, as of 31. 12. 2020: CZK 19.452 million).
4.6. LIABILITIES RESULTING FROM LEASE
(, 000 CZK)
Minimum instalment with
respect to rent
Current minimum instalment with
respect to rent
K 31. 12. 2021
As of
31.12.2020
As of 31. 12. 2021
As of 31.12. 2020
Payable within 1 year
37,887
38,147
29,142
28,882
Payable between 2 and 5 years
114,743
126,298
86,665
100,253
Payable after 5 years
268,938
282,592
210,977
215,421
Total
421,568
447,037
326,784
344,556
Minus unpaid financial payables
(interest)
94,784
102,481
0
0
Minus payables due within 1 year
(shown as current payables)
29,142
28,882
29,142
28,882
- Payables due after 1 year
297,642
315,674
297,642
315,674
Lease-related payables in total
326,784
344,556
326,784
344,556
In 2021, the Company posted payables with respect to the rent of the office
building, infrastructure assets, lease liabilities with respect to new vehicles, and
lease liabilities with respect to agreements to operate municipal water
infrastructure.
The liabilities with respect to the rent of the office building were as of 31.12. 2021:
CZK 235.372 million (as of 31. 12. 2020: CZK 234.719 million).
28
As of 31.12. 2021 the payables with respect to contracts signed with lease
companies for vehicles were CZK 60.945 million (as of 31. 12. 2020: CZK 77.133
million).
As of 31.12.2021, the liabilities with respect to rent of infrastructure were CZK
30.343 million (as of 31.12. 2020: CZK 32.523 million).
As of 31.12. 2021, the payables resulting from the operation contracts for water
assets signed with the municipalities were CZK 0.123 million (as of 31. 12. 2020:
CZK 0.182 million).
29
4.7. LEASE-RELATED AMOUNTS IN THE REPORTING PERIOD
The amounts below are posted in the complete income statement and cash flow
statement:
(, 000 CZK)
2021
2020
Depreciation of assets with respect to the right to use, by
asset classes
Buildings and constructions
13,215
11,649
Vehicles
19,710
17,054
Others
(7,671)
(169)
Depreciation in total
25,254
28,534
Interest payable with respect to lease liabilities (included into the
financial expenses)
9,543
9,244
The expenses relating to the variable lease instalments which are
not included into the lease liabilities include the rent fee paid based
on m
3
taken during the reported year
34,875
31,500
Total lease-related expenses
69,672
69,278
(, 000 CZK)
Lease-related financial
expenses
2021
2020
Variable lease instalments
34,875
31,500
Fixed lease instalments
35,464
32,257
4.8. BANK LOANS AND ISSUED BONDS
As of 31 December 2021, there are not any payables with respect to loans.
On 17 July 2015 the Company issued the bonds at CZK 5.4 billion which were
accepted for trading on the main market of the Stock Exchange (Burza cenných
papírů). The issuance of the bonds is posted using the accrued value. The
expenses relating to the issuance are CZK 81.258 million. The expenses are a part
of the effective interest rate of 2.865 % p.a. The interest rate is fixed: 2.625 % p.a..
As of 31.12.2021, the accrued value of the bonds which is posted in the current
liabilities is CZK 5.394151 billion (as of 31. 12. 2020: CZK
5.381539 billion).
30
The real value of the bonds was calculated using the coupon-free revenue curve
and credit risk surcharge. As of 31.12. 2021 the real value of bonds was CZK
5.521254 billion (as of 31.12. 2020: CZK 5.521254 billion).
The fair value of bonds as at 31.12.2021 does not significantly differ from the
accounting value. The fair value of bonds using the model of the coupon-free yield
curve and interest rate risk mark-up was CZK 5.521254 billion as at 31.12.2020.
The current payables with respect to bank loans and bonds include bond interest
of 64.575 million which are related to the year 2021 but will be paid up only in 2022
(in 2020: CZK 64.575 million).
For the purpose of bonds repayment, the Company is planning to use intragroup
loan provided by the sole shareholder of the Company, even though other
financing alternatives have not been discarded to date. Legal and tax advisors from
Deloitte were engaged to support the company in the process.
4.8.1. Analysis of maturity dates for financial payables
The table below shows the remaining time of the maturity dates for the financial
payables. The table is based on non-discounted cash flow for the financial
payables. It takes into account the earliest possible dates when payment of such
payables can be required. The table includes the cash flow with respect to the
interest and principal.
As of 31. 12. 2021
Interest rate
Less than
1 year
2–5
years
5 years
and more
Trade payables and other payables
0
743,063
0
0
Liabilities resulting from lease
5.5
17,711
41,841
152
Liabilities resulting from lease
2.865
11,431
44,824
210,825
Bonds (nominal value: CZK 5.4 bln.)
with the effective interest rate
2.865
5,476,895
0
0
Total
6,249,100
86,665
210,977
Real value
In the hierarchy of real values, the bonds are at the third level. The reason for this
classification is that the real value is calculated using a valuation model. The real
value is calculated as the present value of future cash-flow arising from ownership
of the bonds. Discount rates used in the calculation are derived from the market
coupon-free revenue curve adjusted to include a credit margin resulting from the
issuer’s credit risk.
As of 31.12 2021, the Company did not hold any financial instruments, the real
value of which would be different from the net book value except for the bonds
which are specified in sub-section 4.8 above.
31
4.9. INCOME TAX
(CZK ,000)
As of 31. 12. 2021
As of 31. 12. 2020
Due income tax
87,781
77,724
Deferred income tax
23,048
19,107
Total
110,829
96,831
As of 31. 12. 2021, the due income tax was CZK 87.781 million (in 2020: CZK
77.724 million). During 2021, the advances paid were CZK 80.573 million (in 2020:
CZK 77.829 million). As of 31.12. 2021 the payable income tax was CZK 8.021
million (in 2020: CZK 1.178 million).
4.9.1. Due tax
The tax per year is based on the profit in the complete income statement:
(CZK ,000)
2021
2020
Profit before taxes
565,489
501,352
Tax rate for the current year
19 %
19 %
Tax with the income tax rate applicable in the Czech
Republic
107,443
95,057
Non-deductibles with respect to tax and revenues
(balance)
4,199
2,857
Income tax for the current period
111,642
98,114
Income tax for the past period
-813
-1,283
Income tax in total
110,829
96,831
Effective tax rate
19.60 %
19.31 %
4.9.2. Deferred tax
As of 31.12. 2021, the deferred tax was calculated pursuant to the Act on Income
Tax and applicable tax rates. The deferred tax is calculated for all temporary
differences between the assets and liabilities in books and those for taxes. The
rate is 19 %. In 2020 the rate was same: 19 %.
In 2021, the deferred tax in the complete income statement was CZK 23.048 million
(in 2020: CZK 19.107 million).
The deferred tax to be paid can be analysed as follows:
Deferred tax:
(CZK ,000)
As of 31. 12. 2021
As of 31. 12. 2020
rate in
%
rate in
%
Difference between the net book value and
tax residual value of the fixed assets
(592,753)
19.0
(570,966)
19.0
32
Temporary reduction in value of fixed
assets
1,535
19.0
2 242
19.0
Temporary reduction in value of
inventories
40
19.0
40
19.0
Temporary reduction in value of
receivablese
478
19.0
1 134
19.0
Unpaid insurance
430
19.0
328
19.0
Total
(590,270)
(567,222)
4.10. INCOME FROM WATER TARIFFS AND SEWAGE CHARGES
(CZK ,000)
Until 31.12. 2021
Until 31.12. 2020
Czech
Republic
Abroad
Total
Czech
Republic
Abroad
Total
Production and distribution
of drinking water
1,622,212
50,857
1,673,069
1,535,734
49,513
1,585,247
Disposal and treatment of
wastewater
1,015,698
0
1,015,698
954,490
0
954,490
Related services
35,148
0
35,148
31,700
0
31,700
Total
2,673,058
50,857
2,723,915
2 521,924
49,513
2,571,437
4.11. OTHER OPERATING INCOME
(CZK ,000)
Until 31.12. 2021
Until 31.12. 2020
Income from building works
103,977
69,293
Income from rent
10,136
10,989
Revenues from sale of materials and assets (net)
23,816
2,359
Other operation revenues
(payments from insurance companies,
compensation of mining damage and such)
13,869
13,463
Total
151,798
96,104
33
4.12. CONSUMPTION OF MATERIALS AND ENERGIES
(CZK ,000)
Until 31.12. 2021
Until 31.12. 2020
Consumption of water, materials and chemicals
470,489
431,278
Gas, electricity and heat
78,111
80,129
Green Bonus paid for generation of environmental-
friendly electricity
(14,442)
(16,753)
Total
534,158
494,654
The Company has been using renewable sources for generation of electricity from
biogas produced in wastewater treatment plants. In 2008 the Company signed a
contract with the electricity distributor ČEZ Distribuce a.s. for support of the
environmentally-friendly electricity generated without use of the operator’s
distribution grid. Under the contract the Company receives a bonus for the
electricity which it generates. In 2021 the Green Bonus was 14.442 million (in 2020:
CZK 16.753 million). The green bonus is shown in the complete income statement
as a decrease in costs of electricity consumed.
4.13. PERSONNEL COSTS
2021
(CZK ,000)
Number
Wages
Social security
and health
insurance
Other
expenses
Personnel
costs in total
Employees
862
380,158
130,296
19,788
530,242
Members of
management bodies
7
17,899
4,584
71
22,554
Total
869
398,057
134,880
19,859
552,796
Supervisory Board/Audit
Committee members
30
0
1,077
3,168
4,245
Total
899
398,057
135,957
23,027
557,041
2020
(CZK ,000)
Number
Wages
Social security
and health
insurance
Other
expenses
Personnel
costs in total
Employees
859
364,651
122,786
18,859
506,296
Members of
management bodies
7
15,599
5,304
42
20,945
Total
866
380,250
128,090
18,901
527,241
Supervisory Board/Audit
Committee members
30
0
1,077
3,168
4,245
Total
896
380,250
129,167
22,069
531,486
34
Other expenses include an extra voluntary insurance for old age pension. This is,
in fact, a pension scheme with a fixed fee. No other obligations exist for the
Company except for payment of that fee.
Donations, loans and other supplies
In 2021, the Board of Directors members, the Supervisory Board members, and
the members of the company management bodies received following bonuses and
payments in addition to their regular wage packages where such bonuses were
posted as other personnel expenses:
2021
(CZK ,000)
Board of
Directors
Supervisory
Board /
Audit
Committee
Members of
management
bodies
Bonus for the office
1,188
1,980
0
Non-monetary and other income (bonus under the
collective agreement and cars which can be used
also for private purposes)
0
272
865
2020
(CZK ,000)
Board of
Directors
Supervisory
Board /
Audit
Committee
Members of
management
bodies
Bonus for the office
1,188
1,980
0
Non-monetary and other income (bonus under the
collective agreement and cars which can be used
also for private purposes)
0
221
821
35
4.14. OTHER OPERATION EXPENSES
(CZK ,000)
Period
until 31. 12. 2021
Until 31.12. 2020
Repairs
270,463
217,152
Travel costs
6,142
6,592
PR and entertainment costs
1,367
1,194
Transport
1,141
1,258
Telecommunication, mail
8,539
7,069
Mail charges
7,316
7,221
Advisory and legal services
8,098
6,104
Collection, transport and disposal of sludge
39,908
31,224
Rent
38,048
34,796
Cleaning and guarding
18,862
18,437
Laboratory analyses and expertises
38,568
36,079
IT services
27,538
25,539
Technical betterment
5,194
4,199
Training
1,522
1,514
Taxes and fees
4,361
4,630
Depreciation of receivables
146
279
Depreciation of investments in assets
1,175
13
Compensation of damage
305
226
Pollution fees
4,780
17,104
Premium
8,133
7,444
Meter reading, call centre
48,095
43,892
Works/services of material-nature
11,445
11,939
Other operation expenses (such as sub-supplies and
other purchased works)
51,195
32,015
Total
602,341
515,920
Remuneration of the statutory auditor for the relevant period
Auditor
Amount included in
audit costs for 2021
(in CZK ,000)
Other services
(in CZK ,000)
Other services -
description
Deloitte Audit s.r.o.
4
Deloitte Advisory s.r.o.
254
Solvency test
Ernst & Young Audit,
s.r.o.
1,296
36
4.15. CREATION OF RESERVES AND TEMPORARY REDUCTION IN VALUE OF
THE ASSETS
(CZK ,000)
Until 31.12. 2021
Until 31.12. 2020
Reserves - increase/decrease
(4,647)
10,457
Temporary reduction in value of inventories –
increase/decrease
0
60
Temporary reduction in value of assets –
increase/decrease
(3,834)
(60)
Temporary reduction in value of receivables –
increase/decrease
(2,348)
5,536
Total – increase/decrease in reserves and
temporary reduction in value of assets
(10,829)
15,993
4.16. FINANCIAL REVENUES AND EXPENSES
(CZK ,000)
Until 31.12. 2021
Until 31.12. 2020
Interest paid
(151,293)
(150,994)
Bank feed paid and exchange rate loss
(13,688)
(14,142)
Expenses in total
(164,981)
(165,136)
Interest received and other financial revenues
688
652
Total income
688
652
Net total
(164,293)
(164,484)
4.17. TRANSACTIONS WITH RELATED PERSONS
Persons in the Group:
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S. A. is the controlling person in FCC
Grupo:
- AQUALIA CZECH, S. L.
- AQUALIA INTECH, S. A.
- Aqualia infraestructuras inženýring, s.r.o. (the majority share: AQUALIA
INTECH, S. A.)
- Vodotech, spol. s r.o. (the subsidiary of AQUALIA INTECH, S. A.)
- FCC Aqualia, S. A.
- FCC Česká republika, s.r.o.
- OBSED a. s.
- HIDROTEC, Tecnologia del Agua, S. L. U.
The tables below list the transactions with the related persons in 2021 and 2020.
These were the arm’s length transactions.
All the companies above are parts of FCC Group.
37
Income made with the related persons
2021
(CZK ,000)
Person
Relation to the Company
Service
s
Interest
Total
Vodotech, spol. s r.o.
Other persons in the Group
1,555
0
1,555
Aqualia infraestructuras inženýring, s r.o.
Other persons in the Group
19,184
0
19,184
FCC Česká republika s.r.o.
Other persons in the Group
203
0
203
Total
20,942
0
20,942
2020
(CZK ,000)
Person
Relation to the Company
Service
s
Interest
Total
Vodotech, spol. s r.o.
Other persons in the Group
1,501
0
1,501
Aqualia infraestructuras inženýring, s r.o.
Other persons in the Group
9,141
0
9,141
FCC Česká republika, s.r.o.
Other persons in the Group
427
0
427
FCC Aqualia, S. A., organizační složka, cz
Other persons in the Group
12
0
12
Total
11,081
0
11,081
Purchases made with the related persons
2021
(CZK ,000)
Person
Relation to the Company
Service
s
Other
expenses
Total
Vodotech, spol. s r.o.
Other persons in the
Group
79,849
22
79,871
Aqualia infraestructuras inženýring, s r.o.
Other persons in the
Group
147,467
0
147,467
Fomento de Construcciones y Contratas,
S. A.
Other persons in the
Group
4,334
0
4,334
Aqualia Czech, S. L.
Parent company
4,027
0
4,027
FCC Aqualia, S. A.
Other persons in the
Group
3,037
0
3,037
FCC Aqualia, S. A., organizační složka
ČR
Other persons in the
Group
1,037
0
1,037
FCC Česká republika s.r.o.
Other persons in the
Group
4,300
0
4,300
Hidrotec Tecnologia del Agua, S. L. U.
Other persons in the
Group
1,014
0
1,014
OBSED a. s.
Other persons in the
Group
26,520
0
26,520
Total
271,585
22
271,607
38
2020
(CZK ,000)
Person
Relation to the Company
Service
s
Other
expenses
Total
Vodotech, spol. s r.o.
Other persons in the
Group
73,592
14
73,606
Aqualia infraestructuras inženýring, s r.o.
Other persons in the
Group
106,502
0
106,502
Fomento de Construcciones y Contratas,
S. A.
Other persons in the
Group
4,288
0
4,288
Aqualia Czech, S. L.
Parent company
3,913
0
3,913
FCC Aqualia, S. A.
Other persons in the
Group
2,926
0
2,926
FCC Česká republika s.r.o.
Other persons in the
Group
3,982
0
3,982
Hidrotec Technologia del Aqua, S. L. U.
Other persons in the
Group
433
0
433
OBSED a. s.
Other persons in the
Group
22,074
0
22,074
Total
217,710
14
217,724
Acquisition of the fixed tangible assets from the related persons
(CZK ,000)
Person
Relation to the Company
2021
2020
Vodotech, spol. s r.o.
Other persons in the Group
25,215
4,994
Aqualia infraestructuras inženýring, s r.o.
Other persons in the Group
623,428
575,869
FCC Aqualia, S. A., organizační složka ČR
Other persons in the Group
5,048
5,301
Total
653,691
586,164
Related person receivables
(CZK ,000)
Person
As of 31. 12. 2021
As of 31. 12. 2020
Trade receivables
Vodotech, spol. s r.o.
0
50
Aqualia infraestructuras inženýring, s r.o.
6,942
2,163
FCC Aqualia, S. A., organizační složka ČR
58
58
FCC Česká republika s.r.o.
25
0
Total
7,025
2,271
39
Related person payables
(CZK ,000)
Person
As of 31. 12. 2021
As of 31. 12. 2020
Trade payables
Vodotech, spol. s r.o.
34,044
10,577
Aqualia infraestructuras inženýring, s r.o.
242,701
275,149
Fomento de Construcciones y Contratas, S. A.
474
484
FCC Česká republika s.r.o.
489
445
Hidrotec Technologia del Aqua, S. L. U.
563
417
OBSED a.s.
3,391
2,193
FCC Aqualia, S. A.
290
239
Trade payables in total
281,952
289,504
Transactions between related persons were entered in books using the prices
typical in the place of performance on a length-of-arm basis.
Sums which have not been paid yet are not secured and will be paid by bank
transfers. No warranties were granted or received. No temporary reduction in value
was posted for the related person receivables.
40
5. RISKS RELATING TO THE FINANCIAL STATEMENTS
The capital structure is managed in such a way so that the Company could reach,
in a long term, a stable financial position and so that it could generate maximum
profits for the shareholder.
Company’s business involves credit risk, liquidity risk and market risks. The market
risk includes currency risk and interest rate risk.
Credit risk
A credit risk is a risk of default on a debt that may arise from a party failing to pay
the requirement payment which causes the Company to suffer a loss. The
Company’s management body introduced rules in order to manage the credit risk,
and the credit risk is being monitored now. Trade receivables are highly diversified
and the Company does not face any major credit risk with respect to an individual
entity or a group of entities. The credit risk with respect to liquid financial means is
minimum because the partners are top rating banks.
Currency risk
The group carries out most transactions in CZK and is not subject to significant
currency risk.
Interest rate risk
A fixed interest rate bears interest with respect to the main liability. The risk, if any,
of changes in the real value is not secured.
Liquidity risk
The management body created a reasonable framework in order to manage the
liquidity risk and short-term, medium-term and long-term finances. The Company
manages the liquidity by maintaining a reasonable reserve and long-term credit
tools. It monitors the planned and real cash flows and adjusts the maturity dates
for payables and receivables. The company fulfills its commitments duly and in
time.
41
6. SENSITIVITY ANALYSIS
Sensitivity to market changes
The Company is the dominant producer and supplier of drinking water and the
main provider of wastewater discharge services in the Moravian-Silesian Region.
It has been monitoring and evaluating behaviour on its market. The Company is
not sensitive to changes on the market because the water tariff and sewage charge
are subject to price regulation, and the Company includes all justified costs into
tariffs.
Sensitivity to changes in interest rate
Because of the issued bonds, the Company is sensitive to changes in the interest
rates. If the increase is 1.0 p.p., the real value of the liability with respect to the
bonds will drop by CZK 54.000 million. In case of the unfavourable scenario when
the decrease is 1.0 p.o. the real value of the liability with respect to the bonds will
increase by CZK 54.000 million.
Sensitivity to the currency exchange risk
The Company carries out most transactions in CZK and is not subject to significant
current risk.
7. CONDITIONAL LIABILITIES
Bills of exchange
In July 2015 the Company signed a contract in order to secure its financial stability
for the future period. The other party to the contract is ING Bank N.V., a joint-
stock company established under the law of the Netherlands with the registered
office at Bijlmerplein 888, 1102 MG under 33031431 which is represented in the
Czech Republic by ING Bank N.V., the branch in Prague with the registered office
at Českomoravská 2420/15, Libeň, 19000 Praha 9, Czech Republic ID: 492
79 866. The contract provides for the credit line up to CZK 120 million. ÚThe loan
is secured with the promisory note (“the blank bill”). In 2021, the credit line was
used for issue of bank warranties.
Bank warranties
As of 31.12. 2021, the Company issued the bank warranties amounting to CZK
4.72 million (in 2020: CZK 5.252 million). For the summary of bank warranties see
the table below.
42
Date of
issue
Issued
in favour of
Purpose of issue
Validity
Bank
warranty
amount
3. 9. 2020
Union of Municipalities
in the region of Nový
Jičín, Masarykovo
náměstí 1, 741 01
Nový Jičín
Operation of the water
infrastructure/sewage system
owned by the Association of
Municipalities in the Nový Jičín
District
7. 9. 2020 - 31. 12 2022
675,000.00
3. 9. 2020
Municipality of Orlová,
Osvobození 796, 735
14 Orlová-Lutyně
Operation of infrastructure owned
by the Municipality of Orlová
7. 9. 2020 - 31. 12. 2022
100,000.00
3. 9. 2020
Municipality of
Albrechtice, Obecní
186, 735 43 Albrechtice
Operation of water assets owned
by the Municipality of Albrechtice
7. 9. 2020 - 31. 12. 2024
36,000.00
21. 12. 2020
Municipality of Velké
Losiny, Rudé Armády
321, 788 15 Velké
Losiny
Operation of a sewage system
and wastewater treatment plant
for public needs: in Velké Losiny
and in its suburbs - Maršíkov and
Bukovice.
21. 12. 2020-20. 12.
2025
850,000.00
19. 12. 2018
Municipality of Opava,
Horní náměstí 69, 746
26 Opava
Due fulfilment of operator’s
obligations arising from the
contract
1. 1.2019-31.12.2023
400,000.00
19. 12. 2018
Municipality of
Neplachovice, Na
Návsi 16, 747 74
Neplachovice
Due fulfilment of operator’s
obligations arising from the
contract
1. 1. 2019-31. 12. 2023
150,000.00
9. 1 .2020
Municipality of
Vratimov, Frýdecká
853/57, 739 32
Vratimov
Due fulfilment of operator’s
obligations arising from the
contract
9. 1. 2020-31. 12. 2024
260,000.00
9. 1. 2020
Municipality of
Řepiště, Mírová 178,
739 31 Řepiště
Due fulfilment of operator’s
obligations arising from the
contract
9. 1.2020-31. 12 .2024
114,000.00
21. 12. 2020
Municipality of Horní
Suchá, Sportovní 3/2,
735 35 Horní Suchá
Operation of water assets owned
by the Municipality of Horní
Suchá
1. 1. 2021-20. 12. 2025
230,000.00
21. 12. 2020
Municipality of Dolní
Lutyně, Třanovského
čp.10, 735 53 Dolní
Lutyně
Due fulfilment of operator’s
obligations arising from the
contract
1. 1. 2021-20. 12. 2025
130,000.00
21. 12. 2020
Municipality of
Štramberk, Náměstí
č.9, 742 66 Štramberk
Due fulfilment of operator’s
obligations arising from the
contract
1. 1.2021-20. 12. 2025
106,500.00
7. 5. 2021
Municipality of Písečná,
Písečná čp.262, 739 91
Písečná
Due fulfilment of operator’s
obligations arising from the
contract
10. 5. 2021-10. 5. 2026
68,500.00
29. 9. 2021
Municipality of Říčany,
Masarykovo náměstí
53/40, 251 01 Říčany
Tender for operation of the water
infrastructure owned by the
Municipality of Říčany
11. 10. 2021-31. 3. 2022
600,000.00
43
Date of
issue
Issued
in favour of
Purpose of issue
Validity
Bank
warranty
amount
29. 9. 2021
Municipality of Němčice
nad Hanou, Palackého
nám. 3, 798 27
Němčice nad Hanou
Tender for operation of water
distribution, sewage discharge
and wastewater treatment
facilities
4. 10. 2021-30. 4. 2022
1,000,000.00
Security
As of 31.12 2021, the Company did not issue any securities (as of 31.12. 2020:
CZK 0 million).
Liabilities with respect to construction and acquisition of assets (including
the financial assets)
As of the date of the financial statements, the future liabilities with respect to capital
expenditure under contracts are CZK 58.3 million (in 2020: CZK 218.51 million).
8. COURT DISPUTES
Overview of Court Disputes
Legal disputes where the Company is the Defendant
Currently, one court procedure is in process. It is based on a petition filed by minority
shareholders regarding invalidity of the General Meeting resolutions.
I.
The petition that requires that the resolution adopted at the General Meeting on
22 May 2017 with respect to the decrease in the registered capital and
distribution of the profit made in 2016 should be declared invalid
1. Because the final and binding judgement exists that the General Meeting resolution
to decrease the registered capital of 30 July 2015 is invalid and because the
judgement on the extraordinary appeal filed at the Supreme Court of the Czech
Republic in 2017 has not been awarded yet, the General Meeting resolved to
decrease its registered capital in the same scope as in 2015.
2. Two minority shareholders (an individual who is also the authorised body of the
other minority shareholder) filed on 15 August 2017 at the Regional Court of Ostrava
the petition requiring that the General Meeting resolution of 22 May 2017 should be
declared invalid with respect to the decrease in the registered capital and distribution
of the profit made during the accounting period of the year 2016.
44
3. The Regional Court in Ostrava awarded on 4 December 2017 under Ref. 28 Cm
221/2017-68 the judgement that the General Meeting resolution was invalid with
respect to distribution of the profit made during the accounting period 2016 and with
respect to the decrease in the registered capital.
4. On 12 January 2018 SmVaK Ostrava filed an appeal against the judgement with the
High Court in Olomouc.
5. On 16 October 2018 the High Court of Olomouc dismissed the Regional Court
judgement under Ref. 5 Cmo 38/2018-125. Namely, it dismissed the judgement for
the shareholder who is the legal entity with respect to both distribution of the profit
made in 2016 and decrease in the registered capital, and it dismissed the judgement
to the shareholder who is the individual with respect to the profit made in 2016.
Regarding the decrease in the registered capital it dismissed the resolution and
referred the case back to the Regional Court of Ostrava that should consider it again
on the basis of the judgement awarded by the Supreme Court of the Czech Republic
on 17 July 2018.
6. On 15 March 2019 the both minority shareholders filed an extraordinary appeal with
the Supreme Court of the Czech Republic where such extraordinary appeal was
against the judgement awarded by the High Court in Olomouc. The minority
shareholders believed that the High Court in Olomouc had incorrectly interpreted
the entire process and contents of the general meeting resolutions adopted at the
general meeting – the did not consider violation of shareholders’ right to receive
information about the company and information contained in protests filed at the
general meeting.
7. The Regional Court in Ostrava asked the Company to send its opinion on the
extraordinary appeal. The Company prepared its statement with respect to the
extraordinary appeal in July. Its main argumentation was that SmVaK had provided
its shareholders at the general meeting with all available information relating to each
item on the agenda and that the Company answered all requests for information.
SmVaK also mentioned in its statement that the subject of the extraordinary appeal
had been resolved earlier in judgement awarded by the Supreme Court of the Czech
Republic which had declared it to be illegal. That is why SmVaK proposed that the
extraordinary appeal should be dismissed fully.
8. On 9 March 2021 the Supreme Court awarded the following judgement: it dismissed
the extraordinary appeal in the part requiring invalidity of the resolution to distribute
the profit, and it referred the case back to the High Court for review in the part
requiring invalidity of the resolution to decrease the registered capital. In its
resolution, the Supreme Court addressed, in particular, the process legitimacy of
the petitioner: was the petitioner authorised to file a petition even if he did not take
part in the General Meeting? The Supreme Court concluded that the petitioner was
authorised to file a petition and that is why the case was referred back to the High
Court. The Supreme Court did not deal with the decrease of the registered capital.
9. The High Court in Olomouc dismissed in its judgement under Ref. 5 Cmo 38/2018-
202 a part of the original judgement awarded by the Regional Court in Ostrava, and
referred the case back to the latter court within the scope of judgement awarded by
the Supreme Court of the Czech Republic.
10. The Regional Court in Ostrava dismissed the petition, reasons being, among others,
absence of procedural legitimacy of the plaintiffs. The Regional Court in Ostrava
awarded the judgement under Ref. 28 Cm 221/2017-244.
45
Legal court disputes where the Company is the plaintiff
1. SmVaK Ostrava filed at the Metropolitan Court in Prague an administrative petition
against the decision made by Státní energetická inspekce, No. 904047515, dated
10 December 2015, Ref. 0813029a14/1576/15/90.220/Kr. The process was heard
at the Metropolitan Court of Prague under Ref. 3 Af 16/2016 where SmVaK had
been imposed the penalty for incorrect application and use of a higher price for the
green bonus for electricity generated by combustion of sludge gas from wastewater
treatment plants.
2. The Metropolitan Court in Prague dismissed the SmVaK Ostrava’s petition on 22
September 2020 as it believed that there were no reasons for the petition. SmVaK
Ostrava brought an appeal in cassation with the Supreme Administrative Court of
the Czech Republic against the judgement awarded by the Metropolitan Court in
Prague.
9. POST BALANCE SHEET EVENTS
As of 31 December 2021, no circumstances occurred which would have a
significant impact on the financial statements.
46
10. APPROVAL OF THE FINANCIAL STATEMENTS
These financial statements were approved for disclosure by the Board of Directors
on 17 February 2022.
_______________________________
Miroslav Kyncl
Vice-Chairman of the Board of Directors
_______________________________
Václav Holeček
Member of the Board of Directors
_______________________________
Anatol Pšenička
Managing Director
_______________________________
Halina Studničková
Chief Financial Officer
1
Severomoravské vodovody a kanalizace Ostrava a.s.
with the registered office at 28. října 1235/169, Mariánské Hory, 709 00 Ostrava, ID 45193665
The company is entered in a public register - in the Commercial Register kept at the
Regional Court of Ostrava, Section B, Entry 347
__________________________________________________________________________
REPORT ON RELATIONS
Pursuant to § 82, Act No. 90/2012 Coll. on Business Corporations as amended, the Board of
Directors of Severomoravské vodovody a kanalizace Ostrava a.s. prepared the Report on
Relations between the controlling person and the controlled person and on relations between
the controlled person and persons controlled by the same controlling person (“the Report on
Relations”) for the reporting period starting 1 January 2021 and ending 31 December 2021.
I.
PERSONS IN THE GROUP
Severomoravské vodovody a kanalizace Ostrava a.s. is a member of FCC Grupo where the
controlling person of which is FOMENTO DE CONTRUCCIONES Y CONTRATAS, A.S.
This report lists all members of the Group with whom the controlled person had any contractual
relationship or with whom any legal conduct existed from 1 January 2021 until 31 December
2021.
1. Controlled person
Severomoravské vodovody a kanalizace Ostrava a.s.
with the registered office at 28. října 1235/169, Mariánské Hory, 709 00 Ostrava
ID: 45193665
The company is entered in the Commercial Register kept at the Regional Court of
Ostrava, Section B, Entry 347
2. Controlling person in the Group
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S. A.
with the registered office in Barcelona, Balmes 36, Kingdom of Spain
ID: A-28037224,
The company is entered in the Commercial Register kept in Barcelona on the page
B-26.947.
The company is not entered in the Commercial Register kept in the Czech Republic.
3. Directly controlling person
AQUALIA CZECH S.L.
with the registered office in Madrid, Avda. Camino de Santiago 40, Kingdom of Spain
2
ID: B-85794931
The company is entered in the Commercial Register kept in Madrid on the page M-
488820.
The company is not entered in the Commercial Register kept in the Czech Republic.
4. Other persons in the Group with whom the controlled person was involved in a
contractual relation or contractual conduct
4.1. Aqualia infraestructuras inženýring, s.r.o.
with the registered office at Slavníkovců 571/21, Mariánské Hory, 709 00 Ostrava
ID: 64608042
The company is entered in the Commercial Register kept at the Regional Court of
Ostrava, Section C, Entry 14055
4.2. Vodotech, spol. s r.o.
with its registered office at Jaselská 220/47, 747 07 Opava
ID: 64086348
The company is entered in the Commercial Register kept at the Regional Court of
Ostrava, Section C, Entry 8486.
4.3. Aqualia Intech, S.A
with the registered office in Madrid, Avd. Camino de Santiago 40, Kingdom of Spain
ID: A -28849495
The company is entered in the Commercial Register kept in Madrid on the page M-
59467.
The company is not entered in the Commercial Register kept in the Czech Republic.
4.5. FCC AQUALIA, S.A.
with its registered office in Madrid, Federico Salmón 13, Kingdom of Spain
The company is entered in the Commercial Register kept in Madrid on the page M-
58878.
The branch of the foreign legal person is entered in the Commercial Register kept at
the Municipal Court of Prague, Section A, Entry 69960 under the name
FCC AQUALIA, S.A., organizační složka v České republice („the organisational unit
in the Czech Republic“).
ID: 27788318
4.6. FCC Česká republika, s. r.o.
with the registered office at Ďáblická 791/89, Ďáblice, 182 00 Praha 8
ID: 45809712
The company is entered in the Commercial Register kept at the Municipal Court of
Prague, Section C, Entry 12401.
4.7. OBSED a.s.
with the registered office at Nemocniční 998/14, Moravská Ostrava, 702 00 Ostrava
ID: 27454045
The company is entered in the Commercial Register kept at the Regional Court of
Ostrava, Section B, Entry 3265.
4.8. HIDROTEC, Tecnologia del Agua, S.L.U.
with the registered office in Sevilla, avenida de Kansas City 6, Kingdom of Spain
ID: B-91033621
3
The company is entered in the Commercial Register kept in Sevilla
on the page SE 39514.
The company is not entered in the Commercial Register kept in the Czech Republic.
II.
THE STRUCTURE OF RELATIONS AMONG THE PERSONS IN THE GROUP
1. WAY OF CONTROL
AQUALIA CZECH S.L. is the directly controlling person of Severomoravské vodovody a
kanalizace Ostrava a.s. On 31 December 2021 it owned 3,458,425 shares of Severomoravské
vodovody a kanalizace Ostrava a.s. This represented 100% of the registered capital and the
same share in voting rights.
The controlling is performed by the directly controlling person, in particular by exercising
directly the powers of the General Meeting.
The controlling person is represented by its directors who sit on the controlled person’s Board
of Directors and Supervisory Board.
2. STRUCTURE OF THE RELATIONS IN THE GROUP
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. is the controlling person in the
entire group named FCC Grupo.
Fomento Construcciones y Contratas, S.A. owns 41 % in the registered share in FCC
AQUALIA S.A.
FCC MIDCO, S.A. that is entered in the Commercial Register kept at Luxemburg and residing
at Boulevard Grande-Duchesse Charlotte 48, Luxemburg, owns 10% in the registered capital
of FCC AQUALIA, S.A.
GLOBAL INFRACO SPAIN, S.L. that is a Spanish company residing at the Principe de
Vergara 131, entered in the Commercial Register in Madrid, in the file 34 584, page 40 under
M – 622180, owns 49 % in the registered capital of FCC AQUALIA, S.A.
FCC AQUALIA, S.A. owns:
= 99.9995 % in the registered capital in AQUALIA INTECH, S.A.,
= 99.9999 % in the registered capital in AQUALIA CZECH S.L.
= 49 % in the registered capital in Aqualia infraestructuras inženýring, s.r.o.
= 100 % in the registered capital in HITROTEC, Tecnologia del Agua, S.L.U.
AQUALIA INTECH, S.A. owns:
= 51 % in the registered capital in Aqualia infraestructuras inženýring, s.r.o.
= 100 % in the registered capital in Vodotech, spol. s r.o.
= 0.0001 % in the registered capital in AQUALIA CZECH S.L.
100 % share in the registered capital in FCC Česká republika s. r.o. is owned by FCC
Environment CEE GmbH which is owned at 100 % by FCC Austria Abfall Service AG.
4
FCC Česká republika s. r. o. owns 100 % in the registered capital of OBSED a.s.
Severomoravské vodovody a kanalizace Ostrava a.s. is the controlled person and is not a
controlling person or owner in any company which would be a company from FCC Grupo or
any other company out of the Group.
3. POSITION OF THE CONTROLLED PERSON
The controlled person is a corporation which runs its own business and such business does
not depend on activities performed by other FCC Grupo companies/corporations.
The controlled person is an independent and autonomous business entity with respect to the
controlling and related persons.
III.
The list of conducts performed during the last reporting period upon request or in
interest of the controlling person or persons controlled by the controlling person if such
conduct was related to assets exceeding 10 % of the controlled person’s registered
capital specified in the last financial statements.
The sole shareholder exercising the power of the General Meeting resolved on 7 May 2021 to
distribute the profit made during the reporting period 2020 as follows: The profit after taxation
is CZK 404,521,245.37. A part of the profit, CZK 283,164,872, will be paid out as a share in
the profit.
Based on the decision made by the sole shareholder exercising the powers of the General
Meeting to distribute the profit made during the reporting period 2020 and based on the
insolvency test prepared pursuant to § 40 (1) in the Act No. 90/2012 Coll. on Business
Corporations, the Board of Directors resolved to distribute the share in profit.
IV.
OVERVIEW OF AGREEMENTS ENTERED INTO BY AND BETWEEN THE
PERSONS IN THE GROUP
Financial amounts in transactions between the related persons are listed in Article X below.
In the reporting period, the controlling person and the controlled person (“Severomoravské
vodovody a kanalizace Ostrava a.s." or "SmVaK Ostrava”) and/or persons controlled by the
same controlling person and/or other persons in the Group signed the following
agreements/contracts and/or provided the services/supplies on the basis of new agreements
or the agreements signed in the previous periods:
1. Sale of products, goods and services
a) Sale of products
During the reporting period, SmVaK Ostrava a.s. sold its products and goods to the following
related persons:
5
Vodotech, spol. s r.o.
During the reporting period the contractual relations continued in accordance with the
contract No. 396/95 of 21 August 2008. The subject of the contract and its amendments
is the supply of water from water mains, removal of wastewater through sewage
systems to the related person’s facilities, and removal of rain water from rented areas.
The contract was made pursuant to Act No. 274/2001 Coll. as amended.
During the reporting period, the contractual relations continued in accordance with the
contract of 24 February 2005: the related person was buying back the non-functioning
and rejected water meters from SmVaK Ostrava. The contract is concluded for an
indefinite period of time with a three month notice period.
Based on a purchase order placed by the related person, SmVaK Ostrava washed,
cleaned and repaired personal protective equipment for the related person’s personnel.
b) Sale of services
During the reporting period, SmVaK Ostrava a.s. provided its services to the following related
persons:
Vodotech, spol. s r.o.
The contractual relations continued during the reporting period on the basis of the contract
as amended to administer and maintain SW and HW dated 10 August 2009. The contract
is made for an indefinite period of time with a three month notice of termination. The price
of the consulting service was based on the transfer prices.
The contractual relation continued during the reporting period on the basis of a contract
to provide consulting services of 26 January 2018 where SmVaK Ostrava was the service
provider and the related person was the client. The subject was the consulting with respect
to client’s corporate matters as well as the consulting services regarding the PR, mass
media and marketing. The contract is concluded for an indefinite period of time with one-
month notice period. The price of the consulting service was based on the transfer prices.
The contractual relationship continued during the reporting period on the basis of the
contract to rent non–residential spaces – the business area and operational areas in
Opava of 31 August 1995, and its amendments.
In the reporting period, the contractual relationships existed on the basis of the following
agreements to rent non-residential areas for business purposes:
The agreement No. 1/97 in effect since 30 September 1997, and its amendments. The
subject of the agreement was the rent of the non-residential premises in the WTP Vyšní
Lhoty, WTP Nová Ves and WTP Podhradí.
The agreement No. 2/97 in effect since 30 September 1997, and its amendments. The
subject of the agreement was the rent of the non-residential areas in WWTP Frýdek-
Místek and WWTP Třinec.
The agreement No. 3/97 in effect since 30 September 1997, and its amendments. The
subject of the agreement was the rent of the non-residential areas in the WWTP
Havířov.
The agreement No. 4/97 in effect since 30 September 1997, and its amendments. The
subject of the agreement was the rent of the non-residential areas in the WWTP Šenov
u Nového Jičína.
The agreement No. 5/97 in effect since 30 September 1997, and its amendments. The
subject of the agreement was the rent of the non-residential areas at WWTP Opava.
6
The contracts/agreements were signed for an indefinite period of time where a three month
notice of termination should be given. The rent is specified in line with the length of arm’s
principle pursuant to the documentation on transfer prices in transactions made by and
between the related persons. The rent is adjusted on the basis of the inflation rate declared by
the Czech Statistics Office for the previous calendar year.
.
In the reporting period, the contractual relationships existed on the basis of the following
contracts to rent movable property:
The agreement on rent of movables No. 1/97 of 30 September 1997, and its
amendments. The subject was the rent of movables - laboratory equipment and
devices in WTP Podhradí and WTP Nová Ves u Frýdlantu nad Ostravicí.
The agreement on rent of movables No. 3/97 of 30 September 1997, and its
amendments. The subject was the rent of movables - laboratory equipment and
devices in WWTP Havířov and Water Operation Centre in Karviná.
The agreement on rent of movables No. 5/97 of 30 September 1997, and its
amendments. The subject was the rent of movables - laboratory equipment and
devices in WWTP Opava.
The agreement on rent of movables No. 6/97 of 30 September 1997, and its
amendments. The subject was the rent of movables - laboratory equipment and
devices in the central laboratories in Ostrava.
The rent agreements were made for an indefinite period of time with a three-month period of
notice. The rent to be paid is specified in line with the length of arm’s principle pursuant to the
documentation on transfer prices in transactions made by and between the related persons.
The rent is adjusted each year on the basis of the inflation rate declared by the Czech Statistics
Office for the previous calendar year.
Aqualia infraestructuras inženýring, s.r.o.
The contractual relation continued during the reporting period on the basis of the contract
to provide consulting services of 26 January 2018 where SmVaK Ostrava was the service
provider and the related person was the client. The subject was the consulting with respect
to client’s corporate matters as well as the consulting services regarding the PR, mass
media and marketing. The contract is concluded for an indefinite period of time with one-
month notice period. The price of the consulting service was based on the transfer prices.
SmVaK Ostrava a.s. being the contractor and the related person being the client entered
into the contract for work where the subject was construction and repair of water
infrastructure with respect to the client’s construction project for a third party. In these
contracts, the price was set on the basis of the budget and SmVaK Ostrava’s pricelist of
works and services. All works were completed properly and in time and were handed over
to the client in accordance with the contract.
The contractual relationship continued during the reporting period on the basis of the
contract to rent non–residential spaces – the business area in Šenov u Nového Jičína. The
contract is concluded for an indefinite period of time with a three month notice period. The
rent was set on the basis of the length of arm’s principle pursuant to the documentation on
transfer prices in transactions made by and between the related persons.
7
FCC Česká republika s. r.o.
On the basis of the contract on wastewater treatment, SmVaK Ostrava a.s. treated the
wastewater for the related person. The price of the work was based on the applicable
SmVaK Ostrava’s pricelist.
c) Provision of other services
SmVaK Ostrava a.s. provided services to the following related persons:
Vodotech, spol. s r.o.
On 21 December 2021 SmVaK Ostrava as the lessor and the related person Vodotech,
spol. S r.o. as the lessee signed an agreement to lease the automatic wastewater
samplers. The contract is concluded for an indefinite period of time with a three month
notice period. The rent was set on the basis of the length of arm’s principle pursuant to
the documentation on transfer prices in transactions made by and between the related
persons. The rent is adjusted each year according to the inflation rate declared by the
Czech Statistics Office for the previous calendar year.
2. Purchase of goods and services
During the reporting period, SmVaK Ostrava a.s. purchased goods and was provided
consulting/other services where the supplier/provider was the following related person:
Vodotech, spol. s r.o.
In the reporting period, the contractual relationship continued under the contract No.
01/2009 of 24 February 2009 where the purpose of the contract was to repair and maintain
the water meters for cold water and hot water and to verify whether the water meters are
correct. The client was SmVaK Ostrava a.s. The contract is concluded for an indefinite
period of time with a three month notice period. The price for the services was specified
in line with the length of arm’s principle pursuant to the documentation on transfer prices
in transactions made by and between the related persons. The price is adjusted on the
basis of the inflation rate declared by the Czech Statistics Office for the previous calendar
year.
In the reporting period, the contract on provision of services of 27 August 2009 as
amended was terminated by agreement. The purpose of the contract was provision of
services connected with the reading of water meters for SmVaK Ostrava’s customers.
On 2 March 2021 the contract on provision of services was signed. The subject was to
read water meters and to validate data relating to the SmVaK Ostrava’s customers for
needs of the customer service department upon its requests, and to provide smart-
metering services using NB-lOT for reading of water meters and electricity meters. The
contract is made for an indefinite period of time whereby the three month notice of
termination must be given. SmVaK Ostrava may withdraw from the contract. The price for
the supply was set in line with laws and length of arm’s principle pursuant to the
documentation on transfer prices in transactions made by and between the related
persons.
On 31 March 2021 SmVaK Ostrava as a client and the related person as a seller signed
a framework service agreement on supplies of remote reading units for water meters and
electricity meters. The contract was signed for the period ending 31 December 2021. The
8
price for the services provided was specified in line with laws and length of arm’s principle
pursuant to the documentation on transfer prices in transactions made by and between
the related persons.
In the reporting period, the contractual relationship continued under the contract on
provision of services of 30 June 2008, and its amendments. The related person operated
a call centre for SmVaK Ostrava a.s. The contract is concluded for an indefinite period of
time with a three month notice period. The price for the supply was set in line with laws
and length of arm’s principle pursuant to the documentation on transfer prices in
transactions made by and between the related persons. On 22 March 2021 the
Amendment No. 13 was signed – it provided more details regarding the subject of supply,
and its quality indicators. It also specified the price of the services to be provided during
the year 2021.
The related person sold, on the basis of the controlled person’s purchase order, materials
necessary for installation of the water meters.
SmVaK Ostrava a.s. placed a purchase order and the related person modified the client’s
guidelines with respect to the framework agreement on official inspection of gas, pressure,
and lifting equipment dated 18 May 2019, and its amendments.
SmVaK Ostrava a.s. placed a purchase order and Vodotech, spol. s r.o. carried out an
extraordinary inspection of gas, pressure, and lifting equipment that was not included into
the time schedule for the year 2021.
During the reporting period, the supplies continued pursuant to the framework service
agreement that was signed on 7 June 2017, and its amendments. The subject was
provision of specialised services, namely, the regular inspection of sites and
installation/replacement of water meters including the equipment for remote reading of
water meters. The contract is made for an indefinite period of time whereby the three
month notice of termination must be given. SmVaK Ostrava being the client may withdraw
from the contract. The contract price was fixed upon agreement of the both parties, in
compliance with the length of arms’ principle as the price typical of that time and that place.
On 16 March 2021 the amendment No. 3 to this agreement was signed. The amendment
specified the price for the year 2021.
Based on an order placed by SmVaK Ostrava a.s., the related person trained SmVaK’s
employees in operation of pressurised, lifting, and special equipment.
In the reporting period the contractual relation continued pursuant to the agreement signed
on 21 August 2018 where the related person is a provider and SmVaK Ostrava is a user.
The purpose is the use of the software CRM LEONARDO CALL CENTRUM which is
installed for processing of customer requirements and services. The contract is made for
an indefinite period of time whereby a two month notice of termination must be given. The
price is specified based on transfer prices.
In the reporting period, supplies continued in line with the framework service agreement on
official inspection of gas, pressure, and lifting equipment of 18 May 2019 where SmVaK
Ostrava was the client and the related person was the supplier. The price of the services
is given in the related person’s pricelist in force. The agreement was signed for an indefinite
period of time with a two month notice period. On 10 March 2021 the amendment No. 2
9
was signed. It included a new time schedule of services and an updated price list. On 24
May 2021 the amendment No. 3 was signed - it extended the subject of supplies.
On 1 March 2021 a framework agreement on laboratory services was signed with the
related party. The subject was sampling and analysing of the drinking water and raw water
samples taken in the OOV systems, the drinking water samples taken in water networks,
and the waste water and waste water sludge samples. The contract is made for an
indefinite period of time whereby a three month notice of termination must be given. The
price of the sampling and analysing is based on the related person’s price list which is in
force now. The price can be reduced thanks to a quantity discount.
On the basis of contracts signed in 2021, the related person prepared, during the reporting
period, the project documentation for the following construction projects:
Project
No.
Name of the construction project
I1731
OOV – reconstruction of telemetry in the water treatment plant and water reservoir
I2790
Wastewater treatment plant in Frýdek-Místek – reconstruction of the automated unit
I2791
Wastewater treatment plant in Kozlovice – reconstruction of the biological treatment unit
and sludge processing facility
I1749
Water treatment plant in Nová Ves – modifications for alternative dosing of polyaluminum
chloride (PAX) in raw water/waste water
Aqualia infraestructuras inženýring, s.r.o.
On the basis of contracts signed in 2020, the related person prepared, during the reporting
period, the project documentation for following investment projects:
Project
No.
Name of the construction project
1687
OOV – refurbishment of collectors in the Sviadnov plant
50117
Podvihov, Na Nové – construction of the automated station and water supply
3885
Bohumín - Skřečoň, the Cihelní, 1. máje streets – reconstruction of the sewers (“beta Aa“,
beta Ab“)
1689
Water reservoir, Písečná - 2 x 75 m3
2780
Třinec, the Žižkova and Lipová streets - reconstruction of the sewer („AD“)
3891
Karviná -Nové Město, the Erbenova and Havířská street – reconstruction of the sewage
system
30165
Havířov-Město, U Motelu - replacement of the water pipeline
20178
Vratimov, the Křivá street - replacement of a water supply
40168
Příbor, the nábřeží Rudoarmějců, 9. května, and Vrchlického streets – replacement of the
water pipeline
50123
Opava, the Čajkovského street - replacement of a water supply
40167
Odry, the Ke Koupališti, Zahradní, and Hranická streets - replacement of the water
pipeline
30176
Havířov-Prostřední Suchá, the Hornická, kpt. Jasioka streets – replacement of the water
pipeline
30175
Orlová - Lutyně, the Na Stuchlíkovci street - reconstruction of the water pipeline
2781
Wastewater treatment plant in Frýdek-Místek – reconstruction of a pumping station for
the rainwater tank
1701
Water reservoir in Lichnov – a low voltage connection cable, repair/reconstruction of the
structure
3893
Wastewater treatment plant in Horní Bludovice – repair of the access road
10
1712
Deacidification station in Hněvošice - repairs of drill bores HV1 and HV2, reconstruction
of telemetry and level measurement in drill bores
1713
Deacidification station in Hněvošice – repair and reconstruction of structures and
technology units
1716
OOV – reconstruction of corrosion inhibition in the Kružberk water supply system
1717
OOV – reconstruction of corrosion inhibition in the Beskydy water supply system
20073
Třinec, the Bezručova street - replacement of a water supply
50124
The Melč water supply system – replacement of water pipelines (stages 1 and 2)
50131
Lhotka u Litultovic – replacement of a water supply
1569
Reconstruction of the water conduit, DN 500, Dobrá - Nové Dvory - Frýdek
20182
Sviadnov, the O Kišové street – replacement of a water supply
30177
Šenov, the Petřvaldská, Těšínská streets - replacement of the water pipeline
30178
Dětmarovice, from the building # 680 to the building # 872 – replacement of the water
pipeline
20185
Frýdek-Místek, the U Nemocnice street – construction of a water meter manhole
50130
Podlesí – replacement of a water supply (stages 1 and 2)
1729
Pumping station in Petrovice – reconstruction of a control system
20123
Reconstruction of the Třinec Centre site
30181
Orlová - Lutyně, the 17. listopadu street – replacement of the water pipeline and
modifications of the water network
30179
Rychvald, the Školní – construction of a water metering shaft
3707
Wastewater treatment plant in Rychvald (Václavka) – reconstruction of the Imhoff tank
40181
Trnávka – replacement of a water supply bridge
40183
Bílovec, the Za Nemocnicí street – replacement of the water pipeline
40182
Kopřivnice, the Obránců míru street – replacement of the water pipeline
50105
Water reservoir in Bělá – connection of a low voltage cable
On the basis of contracts signed in 2021, the related person prepared, during the reporting
period, the project documentation for the following construction projects:
Project
No.
Name of the construction project
30188
Těrlicko, the Dlouhá, Školní, Zahradní, Střelniční street – replacement of water pipelines
40184
Kopřivnice, the street – replacement of the water pipeline
30187
Havířov-Prostřední Suchá, the Dělnická, U Hřiště streets - replacement of the water
pipeline
40189
Changes in supply for the consumption area in Trojanovice – the automated high-
pressure boosting station
40180
Kateřinice – replacement of a water supply bridge
50134
Vítkov - Klokočov – replacement of the water pipeline
40190
Lubina, the site where the reduction shaft #1 is located – replacement of the water pipeline
1677
Pressure break chamber in Červený Kámen – repair and reconstruction of structures and
wiring
1735
Water reservoir in Životice – repair and reconstruction of the storage chamber and water
reservoir – repair of the reinforced concrete structure
1736
Water reservoir in Karviná – Ráj – repair and reconstruction of waterproofing in the valve
chamber and storage chambers in the water reservoir
1734
Changes in supply for the consumption area in Trojanovice – modification in operation of
the WTP in Bystré
40193
Kopřivnice, the Štefánikova, Hanse Ledwinky streets – replacement of a water supply
20198
Kojkovice – modification of correction pressures
20196
Český Těšín, the Svojsíkova, U Mlékárny, Jablunkovská streets – replacement of water
pipelines
40192
Bílovec, the Na Samotě street – replacement of the water pipeline
30191
Karviná-Mizerov, the Zahradnická street – replacement of the water pipeline
11
40195
Bílovec, the Tkalcovská, Příkopní streets – replacement of the water pipeline
4736
Nový Jičín, the Žižkova and Nábřežní streets – reconstruction of the “AH-1“ sewer
50137
Malé Hoštice, the Opavská, Sportovní, V zátiší, Školní streets – reconstruction of the
water pipeline
1737
Pressure break chamber, Bílov – repair and reconstruction of structures in the boosting
chamber
2787
Frýdek-Místek, the Heydukova street (next to the community centre) - reconstruction of
the sewage system
3902
Rychvald, Finské domky - reconstruction of the “B“ and “BI“ sewers
3898
Bohumín - Skřečoň, the Myslivecká street reconstruction of the ”beta Aj5“, “beta Aj6“, and
“beta Aj7“ sewers
3900
Petřvald, the Závodní street - reconstruction of the ”AIX“ and “O1AIX“ sewers
20197
Staříč, at the community centre – replacement of the water supply
3899
Orlová - Poruba, the Sadová 834 – reconstruction of the “AV“ sewer
3903
Orlová - Poruba, the Zátiší street (WWTP site) – reconstruction of the “B” sewer
5697
Opava, the Otická, Vaškovo náměstí streets – reconstruction of the “AK“ sewer
3901
Horní Suchá, the Lipová street, building #982 – reconstruction of the “Ae“
1608
Water source in Chlebičov – replacement of the bore drill, JS-1 – temporary supply of
drinking water
5698
Wastewater treatment plant in Dolní Benešov – reconstruction of facilities in the plant
2789
Kozlovice – reconstruction of relief chambers for the sewage system
2788
Paskov, the Vodárenská street street – reconstruction of the “A” sewer
3905
Horní Bludovice (the Na těrlické spojce, U hospody, U obecního úřadu,
Pod autobazarem streets) – reconstruction of the facility
3906
Wastewater treatment plant in Albrechtice – reconstruction and repair of technology
facilities and building structures
2794
Wastewater treatment plant in Frýdek-Místek – repair of equipment in the VN-2 digestion
tank
3907
Havířov - Město, the Na Nábřeží street – reconstruction of the “C“ sewer
50140
Opava, the U Synagogy street – replacement of the water supply
4740
Štramberk, the Dolní, Zauličí streets – reconstruction of the “A“ and “AH“ sewers
1763
Water treatment plant in Strahovice – reconstruction of the facility
On the basis of contracts signed in 2021, the related person will prepare in 2022 the project
documentation for the following construction projects:
Project
No.
Name of the construction project
30186
Petřvald – construction of a water shaft at the Vodárenská street – construction of 2 water
shaft at the Šumbarská and J. Rohla streets
30193
Petrovice u Karviné, from the building # 80 to the building # 116 – replacement of the
water pipeline
2786
Třinec, the 1. máje street – reconstruction of the “A” sewer
2785
Třinec, the Závodní street – reconstruction of rakes in the „Šancer“ collector
3904
Horní Suchá, the Mlýnská street, building # 991 – reconstruction of the “A“ sewer
30194
Dolní Lutyně, the Ďablova kolonie street - replacement of the water pipeline
4737
Kopřivnice, the Bezručova, Masarykovo náměstí streets – reconstruction of the sewage
system
50143
Chvalíkovice – replacement of the water pipeline and inspection manhole
5699
Opava, the Rolnická street - reconstruction of “DD” sewer
20201
Staré Město, the Jamnická street - replacement of a water supply
30195
Nový Bohumín, automated pumping station, the Čáslavská and Okružní streets –
replacement of water pipelines
30196
Dětmarovice, from the building # 789 to the building # 516 – replacement of the water
pipeline, stage 1
12
20202
Hukvaldy – Rychaltice – replacement of the water supply
3908
Wastewater treatment plant in Havířov – repair of equipment in the VN-2 digestion tank
4738
Wastewater treatment plant in Nový Jičín – construction of a gravel trap facility
4739
Wastewater treatment plant in Kopřivnice – construction of the sludge end facility
1750+O
Water reservoir in Kazničov– repair and reconstruction of construction parts, installation
of power supply
50147
Opava, the Anenská street – reconstruction of the water pipeline
50146
Opava, the Polní street - reconstruction of the water pipeline
40202
Bílovec, the 17. listopadu, 1. máje, Nad Přehradou streets – replacement of the water
pipeline
40203
Bílov – replacement of the water pipeline
1751
Water reservoir in Oldřichovice – installation of HVAC and air filter
1684
Spring area in Tichá – repair of structures in water withdrawal facilities
5703
Opava, the Anenská street reconstruction of the “BI” sewer
30200
Dolní Lutyně, the Komenského, Na Farském streets – replacement of the water pipelines
40209
Kopřivnice, the Masarykovo square – replacement of the water pipeline
40208
Štramberk, the Dolní street – replacement of the water pipeline
1756
Facility in Bělá – replacement and reconstructions of structures, technologies and HVAC
1753
Water treatment plant in Třebom – replacement and reconstructions of structures,
technologies and HVAC
1757
Water treatment plant in Oldřichovice – reconstruction of telemetry
20209
Water reservoir in Jablunkov- Alžbětinky, 1000 – rehabilitation of the facility
20210
Sviadnov, the Stařičská street – replacement of the water supply
40206
Vlčovice – replacement of the water pipeline
4741
Nový Jičín, the Dolní Brána, 5. května streets – reconstructions of the “AE-1“ and “AE-1-
7“ sewers
40207
Nový Jičín, the Slovanská street – replacement of the water pipeline
40213
Mniší – replacement of the water pipeline
50149
Water reservoir in Opava 500 – reconstruction of the facility
1764
Water treatment plant in Radvanov – optimising the filter facilities
1768
Water source in Chlebičov – replacement of the new drill bore
20213
Český Těšín-Horní Žukov, the Frýdecká street – replacement of the water supply
40210
Hájov – replacement of the inverted water siphon
40204
Kopřivnice, the Česká street – cancellation of a redundant water supply
50151
Otice, Družstevní and Opavská streets – reconstruction of the water supply
20211
Třinec, Nový Borek – replacement of the water supply
50150
Pumping station in Pustá Polom – rehabilitation of the facility
1773
Feeder, Přivaděč Záhumenice – Bělá, the pipe bridge across the Odra river – enhancing
protection for the right-bank pier
20215
Chlebovice, the Františka Prokopa street – replacement of the water supply
2800
Wastewater treatment plant in Paskov - chemical precipitation of phosphorus
2801
Wastewater treatment plant in Soběšice - chemical precipitation of phosphorus
5705
Opava, the Horní schody, Stratilova, Jánská streets – reconstruction of the “AG“ sewer
5704
Opava, the Polní street – reconstruction of inspection manholes for the “B“ sewer
4742
Nový Jičín, the Revoluční, Nerudova, Zborovská streets – reconstruction of the sewage
system
4743
Wastewater treatment plant in Štramberk (Bařiny) - chemical precipitation of phosphorus
On the basis of the contracts signed in 2020, the related person completed, during the
reporting period 2021, the repair of the following infrastructure assets:
Project
No.
Name of the construction project
R1563
Water treatment plant in Nová Ves – repair and reconstruction of buildings – the filter hall,
the power supply building, chlorine storage building, dosing building, auxiliary operation
building, workshop and garages
13
R1606
Pressure-break chamber in Raduň - repair and reconstruction of the boosting chamber,
rehabilitation of the pressure-break chamber
R1607
Reconstruction and repair of outdoor lighting for 8 wastewater and water treatment plant -
capital works in wastewater treatment plants (2 water treatment plants – OOV)
R40129
Water reservoir, Bílov 2 x 250 m3 – reconstruction of the facility
R40131
Water reservoir in Fulnek, 2 x 750 m3 – reconstruction of the facility
8562-136
Wastewater treatment plant in Paskov – emergency repair of service tanks
8573-196
Wastewater treatment plant in Opava – emergency repair of the sludge pumping station
and storm water overflow chute
On the basis of the contracts signed in 2021, the related person repaired, during the
reporting period, the following infrastructure assets:
Project
No.
Name of the construction project
R1641
Reduction station in Poruba - repair and reconstruction of the building and technology
R1653
Water reservoir in Palkovice - Hůrky – repair and reconstruction
R1664
Water reservoir in Pstruží – repair and reconstruction of building structures in the storage
tank and water reservoir
R1678
Water reservoir in Rohovec - rehabilitation of the reinforced concrete structure - repair
R20133
Water reservoir in Hrádek 50m3 – rehabilitation of the facility
R20153
Automated boosting station in Stará Ves nad Ondřejnicí – rehabilitation of the facility
R30201
Repair of the façade and plinth on the eastern, western and southern sides of the pumping
facility in the water reservoir, Orlová Lutyně
R40196
Water reservoir in Skalky 2x1500m3 – repair of pipelines in the valve chamber, stage 1
R40214
SmVaK Ostrava’s offices - repair of the garage facade, Water Networks Centre in Nový
Jičín
R40216
Pressure break chamber in Rybí 400 m3 – repair of building structures and ground apron
8445-003
Rychvald, Červená kolonie 1816 – emergency repair of the “B” sewer
8445-011
Karviná -Nové Město, the Makarenkova street, building #1333 - emergency repair of the
“BVI” sewer
8572-047
Wastewater treatment plant in Nový Jičín – emergency repair of a return sludge pumping
station, DN-1
8453-050
Opava, the Sadová street – emergency repair of the “BV” sewer
8572-053
Wastewater treatment plant in Odry – emergency repair of the inlet pumping station
8445-064
Rychvald, the Stará kolonie, building #414 – emergency repair of the “BXI” sewer
8445-067
Nový Bohumín, the Okružní street, building #1208 – emergency repair of the “Aj” sewer
8445-068
Nový Bohumín, the Nádražní street – emergency repair of the "BVI" sewer
8444-069
Petřvald, the Nízká street, building #633 - emergency repair of the “D6” sewer
8445-080
Nový Bohumín, the Jateční street, building #382 – emergency repair of the “AH” sewer
8444-088
Petřvald, the Nízká street, building # 632 – emergency repair of the “D6” sewer
8445-089
Nový Bohumín, the ČSA street, building #690 – emergency repair of the "BI" sewer
8572-094
Wastewater treatment plant in Bílovec - emergency repair of the pumping station
8445-095
Karviná-Nové město, the Makarenkova street, building # 1242 - emergency repair of the
“BIdI” sewer
8445-096
Karviná-Mizerov, the Stavbařů street, building # 2203 - emergency repair of the "HIII"
sewer
8444-098
Petřvald, the Krajní street, building # 577 - emergency repair of the “D6” sewer
8452-104
Nový Jičín, the G. Hlaďo, Žilinská streets - emergency repair of inspection manholes in the
sewage system
8445-109
Karviná - Nové Město, Náměstí Budovatelů, building # 1426 - emergency repair of the
"BVId" sewer
8445-113
Nový Bohumín, the Krátká street, building # 717 - emergency repair of the “BIIa2” sewer
8573-115
Wastewater treatment plant in Opava – repair of secondary metering in service nodes
8573-116
Wastewater treatment plant in Opava - emergency repair of pipes in the anaerobic cycle in
the tank
14
8444-120
Orlová - Poruba, the Žofinská street, building # 913 - emergency repair of the “C” sewer
8564-127
Wastewater treatment plant in Havířov – emergency repair of the cogeneration unit,
Motorgas
8445-133
Karviná -Nové Město, the Družby street, building # 1397 - emergency repair of the “BIVc”
sewer
8573-137
Wastewater treatment plant in Opava – repair of the outlet tower in digestion tanks, VN III
and boiler house II.
8564-139
Havířov wastewater treatment in Havířov – repair of the annex to the settling tank, DN-1
8563-140
Wastewater treatment plant in Třinec – emergency repair of the raking facility, DN-1
8452-147
Nový Jičín, the Bezručova street emergency repair of the sewer, DN 700/1050
8452-156
Nový Jičín, the Sokolovská – emergency repair of the “AH-3.1” sewer
8452-174
Kopřivnice, the Štramberská street - emergency repair of the “AL-1” sewer
8445-175
Nový Bohumín, the Šunychelská street, building # 816 – emergency repair of the “NBIII”
sewer
8564-188
Wastewater treatment plant in Orlová – removal of the original digestion tank structure
8452-194
Štramberk, the Nádražní street – emergency repair in the sewage system
8452-201
Příbor, the Na Kamenci street – emergency repair of the main "B" sewer
On the basis of the contracts signed in 2021, the related person will repair in 2022 the
following infrastructure assets:
Project
No.
Name of the construction project
R1635
De-acidification station, Jakubčovice- reconstruction of technologies
R1637
Water treatment plant in Klokočůvek – repair and reconstruction of technologies and
buildings
R1671
Water reservoir in Frenštát – repair and reconstruction of construction parts and wiring
R40103
Water reservoir in Salaš 2 x 1500 m3 – reconstruction of the facility
R40111
Water reservoir in Puntík 2500 m3 – remediation of the facility
R40135
Water reservoir in Albrechtičky - the 300 m3 tower – reconstruction of the facility
R40217
Water reservoir in Skalky 2x1500 m3 – repair of pipelines in the valve chamber, stage 2
R50074
Water reservoir in Vítkov 650 m3 – reconstruction of the facility
R2794
Wastewater treatment plant in Frýdek-Místek – repair of equipment in the VN-2 digestion
tank
8573-176
Wastewater treatment plant in Velké Hoštice - emergency repair of the service road
8572-187
Wastewater treatment plant in Bílovec – emergency repair of a screw pump
The subject of the contracts above was preparation of project documentation, complete
engineering, supply of construction materials, construction works, the construction process,
and geodetic surveying for integration into client’s GIS. The contract price of the work was
specified for each project in line with the Act on Prices and in line with the documentation on
transfer prices in transactions made by and between the related persons. Payment terms and
conditions, warranty for quality and contract penalties were set forth in the Framework
Agreement on General Construction Projects dated 29 June 2015 and amendments to the
Framework Agreement.
Pursuant to the job contract signed in 2020 the related party removed and disposed, in
2021, for SmVaK Ostrava the abandoned water treatment plant in Holotovec.
FCC Česká republika, s.r.o.
During the reporting period, supplies continued pursuant to the contract dated 4 January
2019. The subject of the contract was acceptance and disposal of water treatment sludge
from the water treatment plants in Podhradí, Nová Ves u Frýdlantu nad Ostravicí and
15
Vyšní Lhoty. The amendment No. 1 to the contract extended validity of the contract until
31 December 2021.
On 6 May 2021 the parties signed a contract for acceptance and disposal of water
treatment sludge from the water treatment plant. The contract is in force until 31 December
2022.
Based on a purchase order placed by SmVaK Ostrava a.s., the related person provided
rental of a waste container. The rent fee was specified using the related person’s price list.
OBSED a.s.
On 31 March 2021 SmVaK Ostrava as a client and the related person signed a contract
for acceptance and disposal of sludge from treatment of municipal wastewater in
wastewater treatment plants. The contract was signed for the period until 31 December
2028. The contract was awarded in the tender pursuant to the Act No. 134/2016 Coll. as
amended as a public tender contract which exceeded the limit.
Based on the orders sent by SmVaK Ostrava, the related person organised transport of
sludge in addition to the scope of the contract above.
3. Supplies of capital works
During the reporting period SmVaK Ostrava a.s. was provided the investment project services
from the following related persons:
Aqualia infraestructuras inženýring, s.r.o.
On the basis of the contracts signed in 2020, the related person completed, during the
reporting period 2021, the following construction projects:
Project
No.
Name of the construction project
1513
Reconstruction of the water supply conduit, DN 500 Chlebovice - Staříč - Stará Bělá
1563
Water treatment plant in Nová Ves – repair and reconstruction of buildings – the filter
hall, the power supply building, chlorine storage building
I1606
Pressure-break chamber in Raduň - repair and reconstruction of the boosting chamber,
rehabilitation of the pressure-break chamber
1607
Reconstruction and repair of outdoor lighting for 8 wastewater and water treatment plant
- capital works in wastewater treatment plants (2 water treatment plants – OOV)
I1630
Water reservoir in Mniší – repair and reconstruction of building structures in the storage
tank and water reservoir
I1645
Water treatment plant in Nová Ves - reconstruction of wiring and socket installation
I1654
Water reservoir in Frýdek – repair and reconstruction of construction parts and wiring
20141
Vratimov, the Popinecká street – replacement of the water supply
I30135
Karviná-Ráj, the Haškova street – replacement of the water pipeline
I30140
Havířov - Město, the U Školky, Gogolova, Majakovského and Matuškova streets –
replacement of water pipelines
I30150
Karviná -Nové Město, the Janáčkova, nám. Budovatelů, Erbenova streets –
replacement of water pipelines
I30152
Havířov - Šumbark, the Odboje and Dukelská streets – replacement of the water
pipeline
I40114
Fulnek, the Masarykova, Fučíkova and Kostelní streets – reconstruction of the water
pipeline
I40129
Water reservoir, Bílov 2 x 250 m3 – reconstruction of the facility
16
I40131
Water reservoir in Fulnek, 2 x 750 m3 – reconstruction of the facility
I40133
Ženklava, from the Municipality building to the building # 208 – replacement of the water
pipeline
I50047
Velká Polom, the low pressure range - reconstruction of the water supply
I50072
Water reservoir in Nové Těchanovice Lhotka 250 – rehabilitation of the facility
I50082
Opava, the Mostní, Sadová streets - replacement of water pipelines
I2774
Wastewater treatment plant in Brušperk – reconstruction of the sludge dewatering unit
I2775
Wastewater treatment plant in Frýdek-Místek – reconstruction of the service building
I3858
Havířov-Bludovice, the Rodinná street - reconstruction of the "AXL" sewer
I3874
Karviná -Nové Město, the Janáčkova and Erbenova streets – reconstructions of the
“BVIb5” and “BVle” sewers
I3875
Těrlicko, the Hornická street – reconstruction of the sewer, DN 300
I4724
Wastewater treatment plant in Kopřivnice – reconstruction of the settling tank, DN-3
I4726
Wastewater treatment plant in Bílovec – increasing the capacity of the plant
I5678
Sewage pumping station, Opava (the Fügnerova street) – repair of the pumping sump
and pumping facility
I5684
Opava, the Sadová street - reconstruction of inspection manholes in the sewage system
Based on the contracts signed in 2021, the related person completed, during the
reporting period, the following construction projects:
Project
No.
Name of the construction project
1641
Reduction station in Poruba - repair and reconstruction of the building and technology
1653
Water reservoir in Palkovice - Hůrky – repair and reconstruction
1658
Water treatment plant in Vyšní Lhoty – reconstruction of the chlorine oxide facility
1664
Water reservoir in Pstruží – repair and reconstruction of building structures in the
storage tank and water reservoir
1675
The water conduit DN 1200 Šance - Nová Ves and the water conduit DN 600 Nová Ves
- Čeladná - Červený Kámen – reconstruction of the water pipe bridge across the
Ostravice River
1678
Water reservoir in Rohovec - rehabilitation of the reinforced concrete structure - repair
1715
De-acidification station in Odry – reconstruction of the low-voltage cable, replacement of
the transformer and power supply cable
1731
OOV, water treatment plant in Velké Hoštice – reconstruction of telemetry in the water
treatment plant and water reservoir
20153
Automated boosting station in Stará Ves nad Ondřejnicí – rehabilitation of the facility
20159
Český Těšín, the Hlavní třída, Viaduktová, Sokola Tůmy and Ostravská streets–
replacement of water pipelines, stage 1
20161
Třinec, the Žižkova and Lipová streets – replacement of the water supply
20165
Těrlicko, Horní Těrlicko, Na Výsluní – replacement of the water supply
20169
Vratimov-Horní Datyně, the Souběžná street, replacement of the water supply
20180
Vratimov, the U Mateřské školy street - reconstruction of the water supply
20197
Staříč, at the community centre – replacement of the water supply
30124
Karviná–Fryštát, the Máchova, Ostravská, Alšova, Husova, Na Bělidle streets—
replacement of water pipelines
30144
Dětmarovice, from the building # 576 to the building # 1153 – replacement of the water
pipeline
30150-II
Karviná -Nové Město, the Havířská street, buildings # 1187-1189 – replacement of the
water pipeline
30156
Rychvald, the Orlovská, U Pošty, Michálkovická streets – replacement of the water
pipeline
30160
Orlová - Poruba, the Václavská street – replacement of the water pipeline
30162
Těrlicko, the Slezská, Kosmonautů streets – replacement of water pipelines
30183
Pumping station in Orlová – reconstruction of telemetry
30189
Karviná, the Havířská street - replacement of the water pipeline
17
40106
Mniší – replacement of the water pipeline
40120
Nový Jičín, the Gen. Hlaďo street – replacement of the water pipeline
40143
Nový Jičín, the K nemocnici street – replacement of the water pipeline
40153
Heřmánky – replacement of the water pipeline under the railway line and Odra River
40168
Příbor, the nábřeží Rudoarmějců, 9. května, Vrchlického streets - replacement of the
water pipeline
40182
Kopřivnice, the Obránců míru street - replacement of the water pipeline
50069
Žimrovice, Meleček - reconstruction of the water pipeline
50107
Vítkov, the Nová street - replacement of the water supply
50112
Opava, the Nádražní okruh, náměstí Svobody streets – replacement of the water supply
50114
Opava, the U Švédské kaple street – replacement of the water pipeline
50116
Háj ve Slezsku – reconstruction of the feeder pipe bridge
2773
Frýdlant n. O., the Hukvaldská street – increasing the capacity of the “AC” sewer and
installation of the rainwater reservoir
2779
Frýdek-Místek, the Pionýrů, Ostravská streets – reconstruction of the “AN” sewer
2780
Třinec, the Žižkova and Lipová streets – reconstruction of the “AD” sewer
3861
Karviná–Fryštát, the Ostravská street – reconstruction of the “alfa” sewer (Š12 - Š17)
3889
Rychvald, the Středová street - reconstruction of the sewage system
3890
Český Těšín, the Kpt. Jaroše street – reconstruction of the “EVIa” sewer
3893
Wastewater treatment plant in Horní Bludovice – repair of the access road
4728
Nový Jičín, the K Nemocnici street – reconstruction of the "AJ" sewer
4730
Odry, the Mendlova street - reconstruction of the sewage system
4733
Frenštát pod Radhoštěm, the Příčnice, Školská čtvrť streets – reconstruction of the "AC"
sewer
4736
Nový Jičín, the Žižkova and Nábřežní streets – reconstruction of the “AH-1“ sewer
5689
Vítkov, the Nová street – reconstruction of the sewage system
5693
Opava, the Nádražní okruh street – reconstruction of inspection manholes in the "AH"
sewer
5696
Opava, the Otická, náměstí Svobody and Sady Svobody streets – reconstruction of the
sewage system
In the reporting period 2021, the following job contracts with the completion dates in
2022 were signed for construction projects with the related person:
Project
No.
Name of the construction project
1579
Water treatment plant in Nová Ves – reconstruction of technology and automated
control system
1635
De-acidification station, Jakubčovice- reconstruction of technologies
1637
Water treatment plant in Klokočůvek – repair and reconstruction of technologies and
buildings
1671
Water reservoir in Frenštát – repair and reconstruction of construction parts and wiring
1673
Water processing plant in Nová Ves – disposal of sanitary sewage
I1690
Water treatment plant in Podhradí – replacement of a pipe section, DN 1000 – drainage
from ozone reaction tanks - flocculation
30151
Petřvald, the Vodárenská and Šumbarská streets - replacement of the water pipeline,
stage 2
40103
Water reservoir in Salaš 2 x 1m500 m3 – rehabilitation of the facility
40111
Water reservoir in Puntík 2,500 m3 – rehabilitation of the facility
40135
Water reservoir in Albrechtičky - the 300 m3 tower – rehabilitation of the facility
50074
Water reservoir in Vítkov 650 m3 – rehabilitation of the facility
50102
Jančí – connection to the water supply in Větřkovice
I2772-1
Extension of metering for relieve water in WWTP – stage 1
I2772-2
Extension of metering for relieve water in WWTP – stage 2
2778
Vratimov, the U Mateřské školy and Na Vyhlídce – reconstruction of the sewage system
18
3873
Karviná–Fryštát, the Karola Śliwky street – reconstruction of storm water chambers in
“OK1 beta B”, “OK1 beta C” and “OK1 beta E”
3876
Orlová – the Okružní, F.S.Tůmy, Ke Studánce, Žofinská streets – reconstruction of the
sewage pumping station
3891
Karviná, the Erbenova and Havířská streets – reconstruction of the sewage system
The subject of the contracts above was the supply of construction materials and technology
units, engineering, and construction works. The contract price was specified for each project
in line with the Act on Prices and in line with the documentation on transfer prices in
transactions made by and between the related persons. Payment terms and conditions,
warranty for quality and contract penalties were set forth in the Framework Agreement on
General Construction Projects dated 29 June 2015 and amendments to the Framework
Agreement.
Vodotech, spol. s r.o.
Based on the contracts signed in 2021, the related person completed during the reporting
period the following construction projects:
Project
No.
Name of the construction project
1674
Reduction corrosion inhibition – cathode protection in Stonava and Velká Polom
3887
Wastewater treatment plant in Havířov – reconstruction of the primary sludge pumping
station
3888
Wastewater treatment plant in Havířov – reconstruction of the pumping system for
stabilised sludge from the storage tank
1747
Water treatment plant in Vyšní Lhoty – emergency replacement of PCU and SCU
control for water disinfection dosing
1729
Boosting pumping station in Petrovice - reconstruction of the control system
The subject of the contracts above was the supply of materials and technology units,
engineering, and construction works. The contract price was specified for each project in line
with the Act on Prices and in line with the documentation on transfer prices in transactions
made by and between the related persons. Payment terms and conditions, warranty for quality
and contract penalties were set forth in the Framework Agreement on General Construction
Projects of 24 November June 2020.
4. Other contractual relations
Related person:
Aqualia infraestructuras inženýring, s.r.o.
Supplies under the Framework Agreement on General Organisation of Investment
Construction Projects as amended continued during the reporting period. The Framework
Agreement was signed on 29 June 2015 by and between SmVaK Ostrava as the client
and the related person as the contractor. The purpose of the Framework Agreement is
general organisation of construction projects, including engineering, preparation of project
documentation and supply of all data which are essential for issuance of master zoning
permits, building permits and final acceptance of completed construction projects where a
separate contract should be signed for each project. The price of services provided under
19
such the contracts was set on the basis of the length of arm’s principle pursuant to the
documentation on transfer prices in transactions made by and between the related
persons. The contract is concluded for an indefinite period of time with a three month
notice period. According to the contract, the client, this means SmVaK Ostrava, may
withdraw from the contract in case of gross violation of contractor’s obligations.
Because Fomento de Construcciones y Contratas, S.A. and El Corte Inglés, S. A. signed
the agreement to provide IT services, SmVaK Ostrava charged the related person for such
services where the amount was based on the total agreed price of the service and
proportions of such services which were used by the companies.
In the reporting period, supplies continued pursuant to the data processing agreement that
was signed on 9 May 2019 between SmVaK Ostrava a.s. as a data controller and the
related person as a data processor. The subjekt was protection of personal data provided
by individuals in connection with contracts signed by the mentioned parties.
Vodotech, spol. s r.o.
In the reporting period, supplies continued pursuant to the data processing agreement that
was signed on 23 May 2018 between the related person as a data processor and SmVaK
Ostrava as a data controller. The agreement was based on changes in law governing
personal data protection (GDPR). The agreement specifies obligations of the parties with
respect to the service agreement - reading of data and the service agreement - operation
of the call centre. On 2 March 2021 the Amendment No. 1 to the contract was signed. It
specified more details about supplies.
Because Fomento de Construcciones y Contratas, S.A. and El Corte Inglés, S. A. signed
the agreement to provide IT services, SmVaK Ostrava charged in the reporting period the
related person for such services where the amount was based on the total agreed price
of the service and proportions of such services which were used by the companies.
In the reporting period, joint use of the Labsystem software continued pursuant to the
contract that was signed between SmVaK Ostrava as and the related person. SmVaK
Ostrava pays the servicing and repair of the software and charges a proportional part of
its costs to the related person.
Supplies under the Framework Agreement on General Organisation of Investment
Construction Projects continued during the reporting period. The Framework Agreement
was signed on 24 November 2020 between SmVaK Ostrava as the client and the related
person as the contractor. The purpose of the Framework Agreement is general
organisation of construction projects, including engineering. For each construction project
a separate contract is signed. The price of services provided under such the contracts was
set on the basis of the length of arm’s principle pursuant to the documentation on transfer
prices in transactions made by and between the related persons. The contract is
concluded for an indefinite period of time with a three month notice period. According to
the contract, the client, this means SmVaK Ostrava, may withdraw from the contract in
case of gross violation of contractor’s obligations. On 23 November 2021 an amendment
to the contract was signed. The amendment specifies formation of prices for supplies in
2022.
20
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A.
In the reporting period, supplies continued through Fomento de Construcciones y
Contratas, S.A. This company agreed to provide IT services for all companies in FCC
Group, the other party to the contract is El Corte Inglés, S.A. with the registered office at
C/ Hermosilla, 112. 2800920 Madrid, Kingdom of Spain. Under that agreement, each
company from the Group is provided the IT services, and the related person charges the
controlled person for such services. The price is based on the total price agreed for the
services and the proportions of the services which are used by the companies. Thanks
to the agreement which was made for the whole of the Group, the controlled person
obtained advantages such as high quality and a good price of services.
FCC AQUALIA, S.A.
In the reporting period, the agreement on consulting services was signed on 28 January
2021 by and between the related person as the service provider and SmVaK Ostrava as
the client. The subject of the contract was preparation of offers for tenders where operators
should be found for water networks and sewage systems in the Czech Republic and
abroad, supervision over and check of construction projects, preparation of optimising
measures for other than core business carried on by SmVaK Ostrava, and the consulting
and advisory in preparation of the investment plan for 2022 and 2023 from the point of view
of the best technology and economic solutions. The contract was signed for the period from
1 January 2021 until 31 December 2021. The price for the services provided was specified
in line with laws and length of arm’s principle pursuant to the documentation on transfer
prices in transactions made by and between the related persons.
In the reporting period, services continued pursuant to the agreement to provide IT
services of 6 December 2019 as amended. The agreement was signed by the related
party as a provider and SmVaK Ostrava as a client. The contract was signed for a limited
period of time. If any party fails to deliver at least 20 days prior to termination of the contract
a written notice of termination to the other party where such notice informs about the
intention to discontinue the contract, validity of the contract will be extended by another
calendar year. The fee for the services was specified in line with the agreement to provide
the IT services which was entered into by FCC Aqualia, S. A a Fomento de Construcciones
y Contratas, S.A. on 28 September 2018.
The related party provided compliance advisory services based on an order placed by
SmVak Ostrava.
In the reporting period, SmVaK Ostrava arranged the rent of an apartment for an employee
of the related person’s organisational unit in the Czech Republic. The rent and services
relating to the use of the apartment were charged fully by the controlled person to the
related person.
In the reporting period SmVaK Ostrava arranged the meal vouchers for an employee of
the related person’s organisational unit in the Czech Republic. Costs incurred were
charged fully to the related person.
In the reporting period SmVaK Ostrava provided for use to the related person’s
organisational unit parts of business space in Prague which SmVaK Ostrava has been
renting for the Department of Organisational Development. SmVaK Ostrava charged the
related person with a proportional part of the rent and fee for services relating to use of
the space.
21
HIDROTEC, Tecnologia del Agua, S.L.U.
In the reporting period, services were provided pursuant to the agreement on software
licences, technical support and update of software products signed by and between
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. and Microsoft. All members
of FCC Group may use the services under the licence. The related person is charged the
fees for use of the licence which are paid to Microsoft. The fee depends on the number of
licences used by SmVaK Ostrava a.s., Vodotech, spol. s r.o., and Aqualia infraestucturas
inženýring, s.r.o.
V
OTHER LEGAL CONDUCT
No legal conduct which would differ from typical legal conduct performed by the controlling
person exercising the powers of the shareholder in the controlled person occurred during the
reporting period in favour of the controlling person, persons controlled by the same controlling
person and/or other persons from within the Group.
The Board of Directors of SmVaK Ostrava a.s. represents that it is not aware of any legal
conduct between the controlled person, controlling persons and other related persons in the
Group that would result in entering into other contracts/agreements than those mentioned
above. The Board of Directors also represents that it is not aware of any conduct between the
controlled person, controlling person and other persons in the Group which would be made
upon request or in interest of the controlling person or the main person in the Group.
VI.
OTHER ACTIONS
No legal acts in addition to those which are typical legal acts performed by the controlling
person exercising the powers of the shareholder in the controlled person were carried out
during the reporting period in favour of the controlling person, persons controlled by the same
controlling person and/or other persons from within the Group.
VII.
SUPPLIES AND CONSIDERATIONS
No other considerations and/or values out of the scope of typical considerations and/or values
provided by the controlled person in relation to the controlling person being the shareholder in
the controlled person were provided or adopted during the reporting period in favour of, or
upon initiative of, the controlling person and persons controlled by the same controlling person
or other persons from within the group on part of the controlled person.
VIII.
ADVANTAGES, DISADVANTAGES AND RISKS RESULTING FROM THE
PERSONS IN THE GROUP
22
The Board of Directors is not aware of any fact that would cause a controlled person to suffer
a damage because of being a part of FCC Grupo.
The controlled person has following advantages thanks to being part of the Group:
- It uses warranties provided by the controlling person from the Group.
- It uses public relation of the Group.
- It uses the licence for know-how which comprises the experience and expertise as well as
operational and commercial knowledge gained throughout operation of water networks and
sewage systems.
- It uses best prices for services, works and licences on the basis of contracts signed by the
controlling person for companies from the Group.
The controlled person does not face any risks because of being a part of the Group as its
business does not depend on other companies from the Group and is not influenced by
activities carried by the others from the Group.
IX.
INFORMATION ABOUT HARM
It follows from the audit and evaluation of the contractual relations and legal conduct existing
between the controlled person, controlling person and other persons in the Group that the
controlled person has not suffered any harm. All above listed contracts and contract
relationships were concluded and all legal acts were performed under terms and conditions
and at prices typical of commercial dealings for that place of performance.
Transactions between the related persons were entered in books using the standard market
prices.
Sums which have not been paid yet are not secured and will be paid by bank transfers. No
warranties were granted or received.
X.
CONCLUSION
Severomoravské vodovody a kanalizace Ostrava a.s. represents that it has not been involved,
during the reporting period, in any other contract relations and did not provide any other
service/supply/performance except for those mentioned above with respect to the controlled
person, persons controlled by the same controlling person or other persons from the group.
This report was prepared by the Board of Directors of Severomoravské vodovody a kanalizace
Ostrava a.s. and approved at its meeting on …………. February 2022. This report was be
submitted for review to the Supervisory Board and to the auditors who are in charge of auditing
the 2021 financial statements and confirming the compliance of the 2021 Annual Report with
the 2021 financial statements in accordance with the Act on Auditors, Act on Business
Corporations and Accounting Act.
Because Severomoravské vodovody a kanalizace Ostrava a.s. is required pursuant to the Act
No. 256/2006 Coll. on Capital Market Transactions to prepare the Annual Report, this report
will be attached to as an annex.
23
The financial scope of considerations provided between the controlling person, controlled
person, the persons controlled by the same controlling person, and other companies from the
Group pursuant to data given in this report is defined in the attachment to the 2021 financial
statements and in the overview below.
Transactions with the related persons in 2021 are listed in the tables below. The transactions
were conducted under conditions typical of business contacts and the prices were set on the
basis of length-of-the-arm principle and documentation stipulating prices for transactions
between related persons
All amounts are in CZK ,000.
Revenues made with the related persons
2021
Person
Relation to the Company
Service
s
Interest
Total
Vodotech, spol. s r.o.
Other related persons
1,555
0
1,555
Aqualia infraestructuras inženýring, s r.o.
Other related persons
19,184
0
19,184
FCC Česká republika s.r.o.
Other related persons
203
0
203
Total
20,942
0
20,942
2020
Person
Relation to the Company
Service
s
Interest
Total
Vodotech, spol. s r.o.
Other related persons
1,501
0
1,501
Aqualia infraestructuras inženýring, s r.o.
Other related persons
9,141
0
9,141
FCC Česká republika s.r.o.
Other related persons
427
0
427
FCC Aqualia, S.A.,organizační složka, cz
Other related persons
12
0
12
Total
11,081
0
11,081
Purchases made with the related persons
2021
Person
Relation to the Company
Service
s
Other
expenses
Total
Vodotech, spol. s r.o.
Other related persons
79,849
22
79,871
Aqualia infraestructuras inženýring, s r.o.
Other related persons
147,467
0
147,467
Fomento de Construcciones y Contratas,
S.A,
Other related persons
4,334
0
4,334
Aqualia Czech, S.L.
Parent company
4,027
0
4,027
FCC Aqualia, S.A.
Other related persons
3,037
0
3,037
FCC Aqualia, S.A.,organizační složka, cz
Other related persons
1,037
0
1,037
FCC Česká republika, s.r.o.
Other related persons
4,300
0
4,300
Hidrotec Technologia del Aqua, S.L.
Other related persons
1,014
0
1,014
OBSED a.s.
Other related persons
26,520
0
26,520
24
Total
271,585
22
271,607
2020
Person
Relation to the Company
Service
s
Other
expenses
Total
Vodotech, spol. s r.o.
Other related persons
73,592
14
73,606
Aqualia infraestructuras inženýring, s r.o.
Other related persons
106,502
0
106,502
Fomento de Construcciones y Contratas,
S.A,
Other related persons
4,288
0
4,288
Aqualia Czech, S.L.
Parent company
3,913
0
3,913
FCC Aqualia, S.A.
Other related persons
2,926
0
2,926
FCC Česká republika, s.r.o.
Other related persons
3,982
0
3,982
Hidrotec Technologia del Aqua, S.L.
Other related persons
433
0
433
OBSED a.s.
Other related persons
22,074
0
22,074
Total
217,710
14
217,724
Acquisition of fixed tangible assets from the related persons
Person
Relation to the Company
2021
2020
Vodotech, spol. s r.o.
Other related persons
25,215
4,994
Aqualia infraestructuras inženýring, s r.o.
Other related persons
623,428
575,869
FCC Aqualia, S.A.,organizační složka, cz
Other related persons
5,048
5,301
Total
653,691
586,164
Related person receivables
Person
As of 31. 12. 2021
As of 31. 12. 2020
Trade receivables
Vodotech, spol. s r.o.
0
50
Aqualia infraestructuras inženýring, s r.o.
6,942
2,163
FCC Aqualia, S.A.,organizační složka, cz
58
58
FCC Česká republika, s.r.o.
25
0
Total
7,025
2,271
Related person payables
Person
As of 31. 12. 2021
As of 31.12.2020
Trade payables
Vodotech, spol. s r.o.
34,044
10,577
Aqualia infraestructuras inženýring, s r.o.
242,701
275,149
25
Fomento de Contrucciones y Contracta, S.A.
474
484
FCC Česká republika, s.r.o.
489
445
Hidrotec Technologia del Aqua, S.L.
563
417
OBSED a.s.
3,391
2,193
FCC Aqualia, S.A.
290
239
Trade payables in total
281,952
289,504
The Board of Directors of Severomoravské vodovody a kanalizace Ostrava a.s. represents
that this report has been prepared with due and professional care and that it comprises all
facts which have been known and available as of the date of preparation.
Ostrava, dated 17th February 2022
Signatures of the authorised Board of Directors’ members
Miroslav Kyncl
Vice-Chairman of the Board of Directors ……………………………..
Václav Holeček
Member of the Board of Directors ……………………………..