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Annual Report


н й а з ди

Enemona carries out marketing, engineering, design, project management and commissioning of power engineering, industrial and civil sites. We develop energy efficiency projects in the fields of civil engineering, industry and power engineering. We design and build power plants, based on renewable energy sources.


OUR MISSION

We manage and execute responsible projects. Our projects are of national and international importance and of public benefit.

OUR PROJECTS Our projects are in the fields of industry, energy, civil engineering and ecology. We carry out our projects with high quality and in time.

WE ARE GROWING We constantly improve our unique experience and the quality of our work. We are looking ahead in the future and we are mastering the latest technologies.

WE ARE A TEAM We respect our employees because they are our most valuable asset. We encourage their development and we advance together.


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Annual Report 2009

Letter from the Chief Executive Officer

Dear Investors and Partners, The past 2009 was a consecutive year of success for Enemona Group of companies, during which we explicitly strengthened our position in the sectors, where we develop our activities. Despite the unstable economic condition, thanks to the team efforts of the Company’s management and employees, we managed to improve not only our work, but also our competitive power and the overall financial results of the Group. In its efforts to react effectively to the negative macro-economic tendencies, the management of Enemona has developed a Program with specific measures and steps to be taken. They are aimed entirely at optimizing and increasing the effectiveness of the work process. In a state of an intense competitive struggle for projects, the management of the Group concentrates its activities mainly on providing new contracts in the fields of power engineering, energy efficiency and trade in electricity. As a result of the successfully applied Program for coping with the negative influence of the economic and financial crisis, in 2009 we reached consolidated revenues of


Annual Report 2009

BGN 190.359 million, and a consolidated net income of BGN 15.225 million, an annual increase of 15.15%. The trade in electricity also recorded a considerable development, and its revenues more than doubled as compared to 2008, reaching BGN 61.075 million.

to win large-scale projects for our engineering and production units. This new Division turns its attention mainly to projects abroad. I am convinced that the results from its work will be evident by the end of next year.

After the successful launch of the company’s common shares at the beginning of 2008, today three types of equity securities, issued by Enemona are traded on the Bulgarian Stock Exchange – warrants, common and preferred shares. By means of the Warrants project, the company became the pioneer to issue a derivative instrument on the BSE-Sofia.

I can assure you, that the management of Enemona constantly analyses the difficult economic condition on national, European and world level. The 2009 results give us hope that we can continue our sustainable development by guaranteeing our investors and partners the security of their investments. In 2010 we celebrate the 20th anniversary of the company. I believe that the experience, traditions and knowledge, which we have gained together for the past 20 years, are a stable basis for concluding another successful year, despite the objective economic uncertainly.

At the end of 2009, aiming at optimizing its activities and concentrating on the main fields of interest of Enemona, the Board of Directors took steps for the company’s restructuring. As a result, a new Division within the Group was established, which main task is to identify new major contracts in the fields of power engineering and industry. The Strategic Projects and Development Division united all the existing marketing and offering potential within the Group, and therefore a new strong team was formed

Dear Investors and Partners,

dipl. eng. Dichko Prokopiev Chief Executive Officer Enemona SA

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Board of Directors

Annual Report 2009

dipl. eng. Dichko Prokopiev

dipl. eng. Tsvetan Petrushkov

dipl. eng. Dichko Prokopiev, Chief Executive Officer, Chairman of the Board of Directors Dipl. eng. Dichko Prokopiev graduated his Masters degree in Electrical machinery and instruments at the Technical University of Gabrovo. Since 1990, he had been an associate partner at Enemona. Since 1994, when the entity was transformed into a joint-stock company, he has been Chairman of the Board of Directors and Chief Executive Officer of Enemona.

dipl. eng. Prokopi Prokopiev

dipl. eng. Bogomil Spirdonov

Board of Directors of Enemona and a Managing Director. He is responsible for the financial and administrative matters of the company.

dipl. eng. Prokopi Prokopiev, Corporate Policy Manager, Member of the Board of Directors Dipl. eng. Prokopi Prokopiev has acquired his Masters Degree in Engineering at the Technical University of Sofia. Since 2005, he has been Corporate Policy Manager of the company.

dipl. eng. Bogomil Spirdonov, Manager of

dipl. eng. Tsvetan the Division Russia and the Petrushkov, Managing Director, Commonwealth of Independent Deputy Chairman of the Board of Directors, Authorized Representative for Quality Management

Dipl. eng. Tsvetan Petrushkov has a Master Degree in Engineering from the Technical University of Sofia. Since 2003, he has been a member of the

States (CIS) Countries, Member of the Board of Directors Dipl. eng. Bogomil Spirdonov has a Master Degree in Engineering from the Technical University of Sofia. He has been a Member of the Board of Directors since 1999. From 2000 until 2005 he was Head of the company’s Marketing and


Annual Report 2009

dipl. eng. Lyudmil Stoyanov

Ilian Markov

Development Department. Since 2006, he has been Manager of the Division Russia and CIS Countries at Enemona.

dipl. eng. Lyudmil Stoyanov, Managing Director and Head of the Strategic Projects and Development Division, Member of the Board of Directors Dipl. eng. Lyudmil Stoyanov has a Master Degree from the University of Architecture, Civil Engineering and Geodesy in Sofia. Since 2000, he has been a Member of the Board of Directors, and between 2002 and 2009 he was Managing Director of the company’s Construction and Assembly Works Division. In the beginning of 2010, he became Manager of the newly established Strategic Projects and Development Division.

Ilian Markov, Deputy Manager of the Construction and Assembly Works Division, Member of the Board of Directors

dipl. eng. Bogdan Prokopiev

dipl. eng. Ivan Petrov

Ilian Markov has a Master Degree in Economics. He has been working at Enemona since 1994. He is among the foundation members of Enemona’s branch office in Galabovo and has been its Managing Director since 2002. After it was transformed into a separate joint-stock company in 2008, he became Chief Executive Officer of Enemona Galabovo and kept this position until the beginning of 2010, when he became a Deputy Manager of the Construction and Assembly Works Division.

dipl. eng. Bogdan Prokopiev, Procurator of Enemona and Manager of the Construction and Assembly Works Division Dipl. eng. Bogdan Prokopiev graduated his Masters degree at the Technical University of Sofia. In 2005 he was chosen to be Enemona’s Procurator, a position he has occupied ever since. Since January 2010, he is also Manager of the Construction and Assembly Works Division

Margarita Dineva LL.M

dipl. eng. Georgi Goranov

dipl. eng. Ivan Petrov, Independent Member of the Board of Directors Dipl. eng. Ivan Petrov graduated his Masters degree at the Technical University of Sofia in 2001. Since 2010, he has been an Independent Member of the Board of Directors.

Margarita Dineva LL.M, Independent Member of the Board of Directors Margarita Dineva LL.M graduated his Masters degree in Law at Burgas Free University. Since 2007, she has been an Independent Member of the Board of Directors.

dipl. eng. Georgi Goranov Independent Member of the Board of Directors Dipl. eng. Georgi Goranov graduated his Masters degree at the Technical University of Sofia in 2001. Since 2007, he has been an Independent Member of the Board of Directors.

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Management Structure

Annual Report 2009

BOARD OF

MANAGEMENT SYSTEMS (QMS, EMS, OHSMS)

STRATEGIC PROJECTS AND DEVELOPMENT DIVISION

CHIEF EXECUTIVE

CONSTRUCTION AND ASSEMBLY WORKS DIVISION

CORPORATE POLICY DIVISION

RUSSIA AND CIS COUNTRIES

CONSTRUCTION UNIT

ASSEMBLY UNIT

BUSINESS DEVELOPMENT

ENGINEERING

ENERGY EFFICIENCY

ENEMONA BRANCH SOFIA

CAPITAL MARKETS

SALES

BELENE CONSTRUCTION UNIT

ENEMONA GALABOVO JSC

CORPORATE COMMUNICATIONS

TENDERS AND NEW MARKETS

EUROPEAN FUNDS AND PROGRAMS

EMCO JSC


Annual Report 2009

DIRECTORS CEO CABINET

OFFICER

FINANCIAL AND ADMINISTRATIVE ACTIVITIES DIVISION

ENERGY TRADING DIVISION

INVESTMENT PROJECTS DIVISION

ENEMONA UTILITIES JSC

CONVENTIONAL POWER ENGINEERING

FINANCE AND ACCOUNTING

CREDIT DEPARTMENT

GAS COMPANIES

RENEWABLE ENERGY SOURCES

LEGAL DEPARTMENT

SYSTEM AND INFORMATION SUPPORT

CHPP NIKOPOL

TRANSPORT AND MECHANIZATION

BY-WORK ACTIVITIES

SECURITY AND SAFETY

ADMINISTRATIVE DEPARTMENT

* The Structure is as of 30.06.2010

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History

Annual Report 2009

1993

An office of Enemona in Sofia was opened. Construction activities of residential buildings in Dresden, Germany 458 employees

1994

1995

First project abroad in Essen, Germany 382 employees

1996

1998

Construction activities contract for a building in Munich, Germany 778 employees over BGN 2.1 mln Revenues

1997

1998

1999

Construction contract for a facility for radioactive waste processing at Kozloduy NPP 756 employees BGN 5.4 mln Revenues

1999

496 employees

1995

First project at Kozloduy NPP 46 employees

1992

Reconstruction of a bank in Dresden, Germany 548 employees

The construction of two blocks of flats in Sofia was started Construction activities of a commercial center in Dresden, Germany 613 employees BGN 6.350 mln Revenues

1997

1991

1993

1990

1994

Enemona was established and registered under company file â„– 542/1990 at Vratsa District Court 23 employees

1996

The first major contract at Kozloduy NPP was completed 212 employees

1991

1990

1992

8

* All figures showing financial data until 1998 are in denominated BGN, 1 BGN = 1.9558 EUR


2003

2004

2005

Enemona Utilities was established. A representative office in Moscow, Russia was opened. First credit rating ВВ+ by BCRA First bond issue – BGN 2.5 mln 1 159 employees 110 contracts over BGN 46 mln Revenues

First contracts with the copper smelter and refinery Umicore Copper (Aurubis) 805 employees almost 90 contracts over BGN 25 mln Revenues

2006

2007

2008

2009

2009

EMCO Belene became a part of Enemona. CHPP Nikopol was awarded a Certificate for First Class Investment Enemona started trading in natural gas First Environmental Management System ISO 14001 2 602 employees over 200 contracts over BGN 150.4 mln Revenues

Enemona became a publicly traded company by an IPO of 2 mln common shares. EPLL was awarded a Certificate for First Class Investment. First Occupational Health & Safety Management System OHSAS 18001 2 027 employees 220 contracts over BGN 84.7 mln Revenues

2008

2001

First contracts for the reconstruction of Sofia District Court of Justice 861 employees almost 50 contracts over BGN 23.5 mln Revenues

2002

Official opening of the sulphur-cleaning installation at TPP Maritsa Iztok 2 2 504 employees over 100 contracts almost 190.4 mln Revenues

2007

2001

9

EESF SPV was established. Construction contract for a sulphurcleaning installation at TPP Maritsa Iztok 2. BGN 6 mln bond issue The Renewable Energy Sources Department was established 1 518 employees over 130 contracts over BGN 61 mln Revenues

The Energy Efficiency Department was established. First ESCO contract 1 089 employees over 160 contract over BGN 31 mln Revenues

2005

2000

2004

Construction activities of a city hotel in Weilburg, Germany. First Quality Management Certificate ISO 9001 592 employees over 50 contracts over BGN 13 mln Revenues

2006

Enemona - Galabovo Branch Office was established 830 employees almost 90 contracts over BGN 26.5 mln Revenues

2003

2000

2002

Annual Report 2009


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Annual Report 2009

Management Systems Enemona, being a part of a number of international projects, must meet the criteria, requirements and necessities of its clients. In order to keep its competitive power and maintain good financial ratios, the company has implemented: Quality Management System (QMS) corresponding to the international standard ISO 9001:2008; Environmental Management System (EMS) corresponding to the international standard ISO 14001:2004; Occupational Health and Safety Management System (OHSMS) corresponding to the international standard OHSAS 18001:2007. The company was initially certified to ISO 9001:1994 in 2000. In 2003, a certification in accordance with ISO 9001:2000 was made. Currently, the Quality Management System of the company is developed, introduced and certified in accordance with the requirements of ISO 9001:2008. Due to the system, it is possible to promptly detect discrepancies and omissions, and to take corrective and preventive actions. As a result of the successfully implemented Quality Management System, we manage to take opportune measures in order to achieve our goals and to improve the processes of the system. After the company passed through a successful certification audit in 2008, Enemona developed and introduced an Environmental Management System that meets the ISO 14001:2005 requirements. The first supervisory audit of the Environmental Management System was held in 2009 and no discrepancies were detected. The Environmental Management System is an integral part of the overall business management system of Enemona. It provides a higher level of confidence of the investors in the company and a stable market position on the European and international market. In 2007, the company implemented an Occupational Health and Safety Management System, certified under OHSAS 18001:1999, as well. The last certification of Enemona according to the Occupational Health and Safety Management System was carried out in 2009 and meets the requirements of OHSAS 18001:2007. The commitment of Enemona’s Board of Directors to safety precautions at work, management and control of occupational health and safety risks is incorporated in the approved Occupational Health and Safety Management policy of the company.


Human Resources Since its establishment in 1990, Enemona has constantly been implementing the best and most progressive practices in the field of Human Resource Management. The company has successfully applied a HR Management system, which integrates the personal goals of each employee with the company’s strategy for sustainable growth. Moreover, the System guarantees high quality of the large-scale projects, carried out by the company. The investments in employees require continuous tutoring and training. The professional realization of the trainings turns Enemona into a self-tutoring organization, in which the corporative trainings, specialized professional courses and trainings for acquiring managerial skills are a necessity for the employees and a precondition for the successful development of the company.

Annual Report 2009

Number of Employees at Enemona Group of Companies between August 1990 and March 2010 3000 2500 2000 1500 1000 500 1990

1992

1994

1996

1998

is to meet the high requirements for quality of work, defined by the company’s partners and clients. The HR Management policy of the company is carried out by the efficient cooperation

2000

2002

2004

2006

2008

2010

between the planning, selection, integration and personnel development units. The Human Resources Department also has a Training centre and a Psychological research and consultations centre.

Within the 20-years’ history of the company, the number of employees has increased more than a hundred times. Currently, at Enemona work more than 2 000 highly-qualified managers, specialists and workers. Their aim

Age and Educational Level Profile of the Employees at Enemona Group of Companies Education

Higher Education - Engineers Construction Engineers Electro Engineers

Number

Percentage

Average Age

345

16.86%

46

31

1.52%

50

76

3.71%

50

163

7.97%

44

75

3.67%

40

Higher Education – Non-Engineers

189

9.24%

41

Secondary Technical Education Secondary Education

772

37.73%

40

510

24.93%

41

Other (lower)

230

11.24%

46

2046

100.00%

44

Mechanical Engineers Other Engineers

Total

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Shares Trading Information

Annual Report 2009

At the end of 2007, Enemona became a publicly traded company by an IPO of 2 million common shares, which were later on listed on the Bulgarian Stock Exchange. A significant investors’ interest marked the IPO and the raised funds reached up to BGN 33.6 million. The first trading date of the common shares of Enemona on the BSE-Sofia was January 23, 2008.

At the end of 2009, the price of the common shares marked a decrease, in unison with the international stock market tendencies. During the whole 2009, the trade in the equities, issued by Enemona, was characterized by an insignificant growth. The highest price – over BGN 12 a share, was registered in mid October, and at the end of the year it settled at about BGN 9.

Comparative Information about Common Shares Trading Total Number of Transactions Total Number of Traded Shares Average Price Total Value of Transactions

2008

2009

12 283

4 777

1 910 136

711 224

BGN 16.95

BGN 8.91

BGN 32 383 520

BGN 6 334 358

Source: www.infostock.bg

Quarterly Information about Common Shares Trading in 2009 Jan-Mar 2009 Total Number of Transactions Total Number of Traded Shares Average Price Total Value of Transactions

Source: www.infostock.bg

Apr-June 2009

July-Sept 2009

Oct- Dec 2009

1 175

876

1 404

1 322

158 637

127 899

247 284

177 404

BGN 7.163

BGN 8.102

BGN 9.314

BGN 10.474

BGN 1 136 406

BGN 1 036 307

BGN 2 303 372

BGN 1 858 276


Annual Report 2009 Е4А

SOFIX

12.5 12.0 11.5 11.0 10.5 10.0 9.5 9.0 8.5 8.0 7.5 7.0 6.5 6.0 Jan 2009

640 600 560 520 480 420 400 360 320 280 240 Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

Jan 2010

Feb

Mar

Source: www.infostock.bg At the end of 2009, Enemona issued the first derivative instrument on the Bulgarian Stock Exchange. By a Resolution, issued by the Bulgarian Supervision Commission, a Prospectus for initial public offering of a Warrants issue at the total number of 5 966 800 with an issue price of BGN 0.17 each was approved. Each warrant of the issue gives the right to its owner to subscribe one share in case of future capital increase of Enemona against payment of an issue value of the new shares at the amount of BGN 18.50 each. This right can be exercised within 6 years. The project was significant for the whole market, because it would show what the investors on the local market think about derivatives. By means of the warrants issue of Enemona a new segment on the BSE-Sofia was formed, the so called “time market”. Initially, the warrants will be traded on the Unofficial Market segment on the Stock exchange until the official establishment of a Derivative market. The official trading

in this derivative instrument started on March 2, 2010 and was marked by a significant investors’ interest. In 2009, the Board of Directors of Enemona took a decision for issuing and public offering of preferred convertible shares with no voting rights, and with an issue value of BGN 9.92 per share. Enemona is the third Bulgarian public company to issue preferred shares. In November 2009, the Bulgarian Supervision Commission approved a Prospectus for initial public offering of dematerialized, nominal, freely transferable, mandatory convertible preferred shares. Each preferred share bears an annual guaranteed cumulative dividend of BGN 0.992 per share in the next 7 years. The preferred shares are mandatory convertible into common ones at the end of the 7th year of registration at the Bulgarian Central Depositary. The public offering started on January 25, 2010. After the successful completion of the capital increase, Enemona raised BGN 10.94 million.

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Engineering, Construction and Assembly Works


Since its establishment 20 years ago, Enemona operates most actively in the fields of engineering, construction and assembly works. They are an essential part of the company’s structure. Our Engineering, Construction and Assembly Works line of activities includes the Construction Works Unit, Assembly Unit, Engineering Department, Enemona – Branch Office Sofia, as well as the companies Enemona Galabovo JSC and EMCO – Belene JSC. All these structural units of Enemona Group of companies carry out construction and assembly works on numerous industrial sites all over the country. Initially, Enemona started its activities in the field of construction and assembly works, mainly on projects on the territory of Kozloduy NPP, where it worked successfully upon the reconstruction and modernization of the nuclear power plant. During the working process on the projects for reconstruction and modernization of Kozloduy

NPP, Enemona has gained unique experience and knowhow, and mastered managerial and technical skills that would be of great benefit in subsequent reconstructions and modernizations, in putting out of operation of power units, as well as in constructing new power generating facilities. Enemona is the first publically traded company in Bulgaria, which regularly provides information about its Construction Backlog Indicator – CBI, on a consolidated basis. The indicator reflects the amount of construction and assembly work that will be performed by Enemona Group of companies in the months ahead. The public reveal of the indicator’s value proves to our investors and partners that we carry out our activities transparently. As of March 31, 2010, Enemona’s Construction Backlog Indicator – CBI on a consolidated basis amounted to BGN 137 million, a 20.18% increase as compared to the end of 2009, when the value of the indicator was BGN 114 million.

Major Construction Projects, Carried out by Enemona Contract Description Mochovce Nuclear Power Plant, Units 3 I 4, Job E022 – Electrical/I&C erection, signed in 2010 Construction of an installation for gypsum de-watering from the sulphur cleaning facilities of Units 1 to 6 of the TPP Maritsa Iztok 2

Contractor

Value (BGN)

Slovenske 108 512 043 Elektrarne, a. s. TPP Maritsa Iztok 2

49 984 343

Mitsui Power Projects LLC

17 331 752

Development of design and technical documentation of complex of technical means for control systems for safety supply, dismantling the old equipment, installation and commissioning of new equipment for 5 and 6 blocks Kozloduy NPP

Interpriborsevice Ltd.

14 881 396

Construction of a water purification facility in the town of Kozloduy

Kozloduy Municipality

7 598 043

Construction and assembly works of electrical facilities at two power generating units with a capacity of 300 MW at TPP Maritsa Iztok 1

ALSTOM Power Generation AG, Bulgaria Branch

7 194 075

Maritsa Iztok Mines JSC

7 060 431

Bulgarian National Television

6 656 558

Construction of sulphur cleaning installations of Units 1 to 4 of the TPP Maritsa Iztok 2

Reconstruction and rehabilitation of a holiday and recreation facility “Nessebar” Construction of Control and Studio Complex 1 at the National Radio & Television Centre - BNT

Annual Report 2009

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Annual Report 2009

Financials Year

Revenues Net Income (in million (in million BGN) BGN)

2008

12.716

1.119

2009

24.484

2.295

The total value of the contracts, signed in 2009, amounts to over BGN 31 million (no VAT included).

4%

12% 6% 2% 3%

73%

Managers Analytical specialists Technicians and other applied specialists Administrative personnel Machine and equipment operators and assembly workers Other (no special skills required)

Enemona Galabovo JSC

In 2002, as a result of the expansion of its activities in the field of conventional power engineering, Enemona established a branch office in the town of Galabovo. In May 2008, Enemona Galabovo was set up as a separate jointstock company under the name Enemona Galabovo JSC. For the past eight years, Enemona Galabovo has been recognized as a leader on the territory of the energy complex Maritsa Iztok. The company is a desired and reliable partner and subcontractor for the on-going rehabilitation, reconstruction, and modernization of certain equipment at the Thermal Power Plant (TPP) Maritsa Iztok 2 and Enel Maritsa Iztok 3. It took a significant part in the construction of the electrical equipment of the two new power units of the TPP Maritsa Iztok 1. Enemona Galabovo has implemented an efficient Quality Management System, Occupational Health and Safety Management System, and Environmental Management System in conformity with the

corresponding international standards ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007. In 2009, the company almost doubled its revenues and income as compared to the previous year. In the past year, it registered stable profitability ratios, which were above the average for similar activities. In 2009, Enemona Galabovo also maintained high Return on assets ratio, along with a notably high Return of equity – 41.74% on an annual basis. Thanks to the high professional skills of the team, the excellent management and the experience gained during the years, the company signs more and more contracts, not only on the territory of the energy complex Maritsa Iztok. Eight years ago, Enemona Galabovo started its activities with only two employees. The company gradually grew to reach the peak in its number of personnel in 2008, when over 630 people were employed. By the end of Q4 2009, over 470 managers, experts and technicians work at Enemona Galabovo.

Major Contracts, signed by Enemona Galabovo Contract Description

Contractor

Value (BGN)

Supply and assembly of equipment and installations for gypsum de-watering from the sulphur cleaning facilities of Units 1 to 6 of the TPP Maritsa Iztok 2

Enemona SA/ TPP 19 136 826,00 Maritsa Iztok 2 JSC

Changing of scoria-transportation pipelines

ENEL Maritsa Iztok 3 JSC

2 346 996,00

Mitsui Power Projects LLC

539 564,76

KNAUF Bulgaria Ltd.

527 682,93

Installation of a knee for Chimney 2 of TPP Maritsa Iztok 2 Supply, assembly and putting into operation of an air-conditioning installation


EMCO JSC Initially, Energomontagcomplect – Belene was established in 1988 with a production and commercial subject of activity. In 1997, the company was registered as a joint stock company under the abbreviation EMCO JSC. In 2008, the company became a part of Enemona Group of companies. Currently, Enemona holds a 77.36% stake in the company’s capital. The decision to acquire a majority stake in the company is related to Enemona’s intention to strengthen its position in the region. Moreover, the specific production means and specialization of the company complement and expand the production capacity of Enemona Group of companies, both in quantity and quality. The business activities of EMCO – Belene include design, construction, manufacturing, delivery and assembly of reservoirs, boilers, pressure vessels, metal constructions, customized equipment, electrical equipment, etc. The company specializes in the production of customized structures of carbon, alloyed and stainless steel. In 2009, no structural changes in the physical volume of its production were made. During the past several years, a major part of EMCO’s production

Annual Report 2009

program included identical articles. In 2009, the structural volume of activities was expanded by carrying out of assembly works of the electro-filters and reservoirs, produced by the company for TPP Maritsa Iztok 1, with a total weight of about 1 000 tones. The contractor is ALSTOM, and the project will continue to be carried out in 2010, with additional 500 tones. EMCO has implemented the Quality Management System corresponding to ISO 9001:2008. EMCO is among the companies, which employ the largest number of people in the region. Currently, more than 200 people work at the company and its products are exported and installed all over the world. Its first major international contract was signed in 1995 with Mitsubishi Heavy Industry Kobe – Japan, for design and manufacturing of reservoirs up to 10 000 cu. m., which were installed in Allepo, Syria. From its establishment, the company works with contractors such as - Bilfinger Berger – Germany, ALSTOM – Switzerland, OSO Stahlbau GmbH Essen – Germany, Petrofac International – ОАЕ, OMV Bulgaria, TITAN Zlatna Panega and many other national and international partners.

2009 Production Figures Product Elements for electro-filters Anker boxes and fundamental frames for steam and gas turbines Other steel constructions TOTAL

Contractor

Volume (tones)

ALSTOM – Sweden and Finnland

1 392

ALSTOM - Switzerland

85

Bulgarian companies

23 1 500

5%

5%

1%

89%

Managers Qualified specialists Administrative personnel Non-skilled workers

Financials Year

Net Income (in million BGN)

Revenues (in million BGN)

2007

10.155

0.636

2008

10.179

1.109

2009

7.098

0.507

17


Energy and Energy Efficiency


Energy and Energy Efficiency

Annual Report 2009

Value of Energy Efficiency Contracts (BGN million) 25 20 15 10 5 0 2004 2005 2006 2007 2008 2009

Enemona is a leading company in the field of energy efficiency projects, carried out for public and private buildings, industrial and power generation facilities. The company provides and implements a comprehensive package of energy efficiency measures to public and private buildings, as well as energy efficiency activities for the industry. These activities are targeted at reducing the energy losses in the power and heat supply infrastructure, along with increasing the efficiency ratio of the power generating equipment. Enemona is among the pioneers in Bulgaria that has successfully accomplished an ESCO contract - a contract that guarantees a certain amount of energy savings after the implementation of a package of energy efficiency measures in buildings that are municipal or state property. For the past six years, we have signed and successfully accomplished ESCO contracts that exceed BGN 40 million. The total amount of energy saving contracts, we have fulfilled, equals to over BGN 70 million. The Energy Efficiency Division of the company independently

organizes the execution of the signed contracts. In 2009 alone, we signed contracts for implementing energy efficiency measures for the total amount of BGN 15 million. Almost all of the contracts signed last year for more than BGN 14 million, would be carried out by the ESCO model. The annual revenues from them amounted to over BGN 8.5 million and the income reached BGN 2.6 million. The company successfully cooperates with municipalities all over the country. Since 2004, Enemona has carried out energy efficiency measures in a number of kindergartens, schools, hospitals, municipal buildings and other. Energy efficiency projects are marked by a distinctive social and environmental significance. The decrease in energy consumption and reduction of carbon dioxide emissions (CO2), achieved by applying energy efficiency measures, is among the main priorities of the European Commission. Energy efficiency projects, being a priority of Enemona, prove once again that the company gives great importance to the ecological principles and norms.

Carbon Dioxide Savings (in tones, annually) 12000 10000 8 000 6 000 4 000 2 000 0 2005

2006

2007

2008

2009

19


20

Annual Report 2009

Renewable Energy Sources

We design and construct installations, based on renewable energy sources

Enemona designs and constructs installations, based on renewable energy sources. Teams of specialists from the company work on the development and putting into operation of reliable technologies, with a well-tried efficiency and financial results. The aim of the company is, in the next few years, to position itself on the local market for development, management and carrying out of energy projects in the field of renewable energy sources.


Enemona Utilities JSC

Annual Report 2009

Financials Enemona Utilities JSC is a wholly-owned subsidiary of Enemona. The company was established at the end of 2005. Since March 2006, the company is a licensed trader in electricity for a period of 10 years. The activities of the company in the field of electricity trading consist of purchasing large amounts of electricity from as many producers, other traders and foreign partners as possible, and selling them afterwards to as many local and international customers, other traders and foreign partners as possible. In 2007, the first electricity supply contract was signed for export to Greece, and in 2008, a number of export contracts for Greece, Macedonia and Serbia were accomplished. In 2009, the company signed its first annual contracts for electricity supply abroad, along with contracts for import from Romania. In the middle of the year, Enemona Utilities enlarged its portfolio of end-customers on the domestic electricity market. Currently, the company is the exclusive electricity supplier to more than 20 big industrial clients in Bulgaria.

In 2009 alone, it reached total local and export sales of over 383 thousand MWh, amounting to over BGN 61 million. Since 2008, Enemona Utilities has become a trader in natural gas, as well. Last year, the company sold 1 376 661 Nm3 natural gas for over BGN 1.0 million. In 2009, the Virtual Gas Pipeline Simitli – Gotse Delchev Project was successfully carried out. The total value of the project amounted to BGN 6.0 million, invested between 2007 and 2009, and was funded by Kozloduy International Decommissioning Support Fund. Within the project framework, a gas-station for refueling of automobiles and auto-trailers with compressed natural gas in Simitly was constructed, along with a gasregulation and supply station in Gotse Delchev. Last year, the investment part of the Virtual Gas Pipeline Simitli – Gotse Delchev Project was completed and entered its trading part. The company will provide the service of natural gas compression for a client in Macedonia. The management aims at finding not only local customers, but also foreign ones.

Year

Net Income (in million BGN)

Revenues (in million BGN)

2008

28.369

1.740

2009

63.392

2.113

Electricity sales (in thousand MWh) 500 400 300 200 100 0 2007

2008

2009

21


22

Annual Report 2009

Energy Project Lom Lignite

and 242 million tones feasibility mineral resources. The approval of the indicated reserves and resources is an obligatory condition for the registration of a Commercial Find. The second condition is to have an enforced resolution on the Environmental Impact Assessment (EIA) Report.

The basic idea of the Energy Project Lom Lignite (EPLL) is the construction of an opencast lignite mine and a Thermal Power Plant (TPP) to it. The pit area of the mine will be located on 21.3 sq km on the territories of the town of Lom, villages Traykovo, Staliyska mahala, Vasilovtsi and Orsoya, Brusartsi Municipality. The place, chosen for opencast extraction, is located in the North-Western part of the Lom Lignite field, where more than 14% of the Bulgarian lignite deposits are concentrated. The Project started in 2007, when Enemona was awarded Permit for Research and Exploration of Mineral Resources on the Momin brod territory by the Bulgarian Ministry of Economy and Energy. In 2009, the company continued to follow its work program. We expect that the reserves would be extracted in a 60-years’ period, with an average opencast production capacity of 5 million tons of lignite a year. The extracted lignite could enable

a Thermal Power Plant with a capacity of 400 – 600 MW to operate for a period more than 60 years. In accordance with the investment strategy of Enemona, EPLL should consist of three stages – a preliminary, a preparatory and a concession period. During the preliminary stage we funded research and development activities, including strategic market and technoeconomic analyses of Lom’s lignite field. In 2009, Geological Reports were prepared for two of the three sections, into which the territory for research and exploration was conditionally divided. The Geological Report for the first section was defended in front of a joint committee, including representatives of the Bulgarian Ministry of Environment and Water and Ministry of Economy, Energy and Tourism. The specialized expert committee by the Bulgarian Ministry of Environment and Water approved a total of 243 million tones proved lignite reserves

In 2009, the preparation procedure of the Environmental Impact Assessment Report for the construction and exploitation of an opencast mine started. At the beginning, an investment proposal for an opencast lignite extraction was prepared and put forward to the Bulgarian Ministry of Environment and Water. Consultatings with utility companies in the area, national and local institutions also started. The EPLL team works upon a program for acquainting of the residents in the region not only with the Project development, but also with all its social and economic aspects. The start of the information complain was given in December 2009 by a meeting with representatives of the Municipal Administration of Lom. After the successful completion of the EIA procedure with an enforced resolution, Enemona will be given the opportunity to register a Commercial Find, which will enable the starting of the Concession procedure.


CHPP Nikopol

Annual Report 2009

Total Investments, as of December 31, 2009 CHPP Nikopol JSC was established as a project company for developing Enemona’s activities in the field of renewable energy sources. According to the conceptual technical characteristics, the Central Heating Power Plant will have a total installed heating capacity of 50 MWth, electrical capacity of 16.5 MWel, generating an annual gross electricity production of 142.9 GWh. The technology allows 80% of the fuel to be waste agricultural biomass (straw) and an option for the remaining 20% to be other biological waste. The total investment on the project is estimated at about BGN 120 million. The financial support preparation started by signing a Mandate Letter with the European Bank for Reconstruction and Development (EBRD). In cooperation with the consulting company COWI A/S (Denmark), Enemona will finally choose the Major contractor for construction of the power plant. The contractor will carry out the assigned activities in accordance with the legal requirements of the Bulgarian Territory Planning Act and the contracted clauses of the International Federation of Consulting Engineers (FIDIC) - Conditions of Contract for Electrical and Mechanical Works (Yellow Book) on the conditions of con­tract for electrical and mechanical works suitable for use on contracts between Employer (Owner) and Contractor for the supply and erection of plant

2008

BGN 450 000

2009

BGN 1 760 200

Total

BGN 2 210 200

and machinery. The chosen method for the construction of CHPP Nikopol is the most suitable in regard to complying with the requirements for Environmental Impact Assessment (EIA). The impact of the power plant will be neutral in regard to the increase of carbon-dioxide emissions, and the nitrogen oxide emissions will be considerably lowered. The positive assessment by Pleven Regional Inspectorate of Environment and Waters of the EIA Report and the Project Compatibility Report prove that, as well. The construction of CHPP Nikopol by applying the most modern technologies could turn the power plant into a standard for constructing such power plants using Renewable Energy Sources in Bulgaria. Among the Project’s advantages are supporting the energy system of Bulgaria by offering a fuel, which guarantees uninterruptedness of the supplies; energy, which is not influenced by sudden changes in the prices of the alternative energy resources; decrease in the unemployment rate in the region; increase in the competitive power of the local agricultural producers; and efficient utilization of the agricultural products.

23


Asset Management


EESF SPV

Annual Report 2009 Types of contracts

In 2009, Energetics and Energy Savings Fund – EESF SPV continues to strengthen its position as a market leader in securitization of receivables in the field of energy efficiency in Bulgaria. As a part of Enemona’s business strategy to develop in this field, the Fund has been granted a 7-millioneuro loan by the European Bank for Reconstruction and Development (EBRD). In relation to the drawdown of Tranche 2 of the EBRD Loan, in March 2009 the Issued share capital of the company was increased from BGN 972 270 to BGN 1 303 374. New agreements for purchase of receivables financed by Tranche 2 of the loan were signed in April 2009. The Fund purchased receivables under 5 ESCO contracts with a total nominal value of over BGN 6.5 million and with an 8.98% weighted average discount. The company aims at achieving a 9.5% weighted average discount as a minimum for the purchased receivables in 2010. EESF SPV prioritizes receivables to be purchased from municipality debtors or other contracting parties with a low credit risk. Aiming at minimizing the possibilities of breaching the contracting obligations by the debtors, in April 2008 the company signed a guarantee agreement with the Bulgarian Energy Efficiency Fund. (BEEF) Under the agreement, the Fund guarantees 5% of the contracting payments to the total amount of BGN 16 million for a period of 7 years. In 2009, the company signed agreements with BEEF for covering the risk of delay

of payments under 15 ESCO contracts, securitized by EESF SPV. The agreements determine the amount, number of installments and the final date, until which they are guaranteed by BEEF. By the end of 2009, receivables for a total of BGN 3.898 million are guaranteed and the possibility for the guaranteed responsibility to enter into force at a maximum of 5% of these receivables is BGN 195 000. During the past year, the trade in EESF’s shares on the Bulgarian Stock Exchange – Sofia, noted a wavy increase and the most transactions were made in Q1 and Q3. Investment Portfolio in 2009 In 2009, the company signed 17 agreements for purchase of receivables with a total nominal value of over BGN 10.7 million and with a purchasing price of over BGN 8.3 million. As of the end of 2009, the company’s portfolio includes 44 long-term and 4 short-term receivables with a balance value of over BGN 16.384 million. In accordance with the company’s business plan, it continues to raise its revenues from securitized receivables, and in 2009 they increased by 79.9% on an annual basis.

2,5% 2% 7%

88,5% ESCO Contracts and Energy Efficiency contracts with municipalities ESCO Contracts and Energy Efficiency contracts with industrial clients Contracts for Cash Receivables Other Contracts in the energy and energy efficiency field

Equity (‘000 BGN) 1400 1200 1000 800 600 400 200 0

2007

2008

2009

Maturity In terms of maturity of the contracts are divided as follows:

31% 40%

29% Up to 3 years - 9% Up to 5 years - 22% Up to 7 years - 69%

25


Other Activities


Real Estate Investment Fund- FINI REIT

Annual Report 2009

The Real Estate Investment Fund - FINI REIT is a jointstock company with a special investment purpose, established on February 1, 2007. The company subject of activity is raising funds through issuing securities and investing the raised funds in real estates (real estate securitization) and property rights on real estates, construction works, upgrading and furnishing the constructed buildings in order to let them for use, rent, given under a hire purchase agreement, leased and/or sold later.

Agro Invest Engineering JSC Agro Invest Engineering is a joint stock company, established as an agricultural producer with main subject of activity production of energy, grain and oil-bearing crops. The company’s main scope of activities also includes production and trading in bio-fuels; engineering and investment activities in agriculture; information and consulting services in the fields of agriculture, agro-business and ecology; purchasing, renting, leasing and cultivating of agricultural land, etc. The 2009 total Net sales revenue amounted to BGN 3.389 million, which is an increase of 126% as compared to 2008. The absolute value of income growth is BGN 705 000. The main investment activity of the company is focused on purchasing arable land, agricultural machinery and equipment. A total of 2 144.578 dka arable land was purchased and, by the end of 2009, the company owns 31 500.300 dka with a total Balance value of

BGN 16.881 million. In its production activities, Agro Invest Engineering keeps up to the principal environmental requirements and applies advanced farming techniques, based on the „Good agricultural practices“ imposed by the European Union. As of December 31, 2009, Agro Invest Engineering holds a 53.04% stake in the sole brewery, traded on the BSE-Sofia

Lomsko pivo JSC During the last several years, the local brewery market was characterized by a certain decrease in sales. In unison with the market condition, Lomsko pivo’s revenues in 2009 decreased by 11.98% on an annual basis and reached BGN 6.461 million. In 2009, the management of the brewery took a number of steps to improve the quality of its products. Consultants from leading brewery institutes from Germany were invited. Measures towards keeping and increasing

the market share of Lomsko pivo were taken, as well. Up to the moment, all the brewery’s products are positioned in the economy market segment, and the aim is to cover a much larger spectrum. Following a competition, Enemona chose Ernst & Young Bulgaria Ltd. for a consultant. The signed contract for providing consultancy services includes the sale of Enemona’s stake in Lomsko Pivo and Agro Invest Engineering.

27


Financials


Financial Development In 2009, the macroeconomic condition in Bulgaria continued to be strongly influenced by the world financial crises from 2008. The fewer possibilities for financing the construction activities, along with the insufficient demand and unstable economic environment, continue to influence negatively the local construction industry. The intention of the Bulgarian government to apply measures to mitigate the consequences of the crises, did not lead to neutralizing the negative effects on the national economy. Despite the hard business conditions in the field of construction and assembly

Annual Report 2009

works, in 2009, Enemona signed new contracts for over BGN 160 million. The “freezing” of a number of major projects in the field of power engineering and industry in the past year, did not hinder the growth in the Group’s financial results. The management of Enemona continued to follow strong financial discipline and to aim at overcoming and counteracting the negative market tendencies. The uninterrupted tracking of the solvency of our partners and clients helps us minimize the risk of delaying or breaching of their obligations. A strategic focus on the

traditionally strong activities of Enemona contributes to improving its competitive position and ensuring larger volumes, which give us hope that the Group of companies will successfully pass through that difficult period.

Subsidiaries Subsidiaries, in which Enemona holds over 50%-stake, as of December 31, 2009: Subsidiary

Percentage

Enemona Utilities JSC

100,00

CHPP Nikopol JSC

100,00

Indirect Subsidiaries of Enemona SA, as of December 31, 2009: Enemona SA holds indirectly 53.04% in Lomsko pivo JSC via Agro Invest Engineering JSC; 30% in Svilengrad-Gaz JSC, as well as 50% in Regionalgaz JSC via Enemona Utilitis JSC.

ESCO Engineering JSC

99,00

Agro Invest Engineering JSC

99,98

Enemona Galabovo JSC

91,11

Neo Agro Tech JSC

90,00

Nevrokop Gas JSC

90,00

Solar Energy Ltd.

80,00

Pirin Power JSC

84,00

EMCO JSC

77,36

Alpha - Enemona Ltd.

40,00

Real Estate Investment Fund –FINI REIT Energetics and Energy Savings Fund SPV Hemusgas JSC

69,23

Sofgeo Lint 2006 Ltd.

26,00

Enemona - Start JSC

4,90

Enida Engineering JSC

4,90

Svilengrad gas JSC

30,00

70,76 50,00

Affiliates, in which Enemona holds less than 50%-stake, as of December 31, 2009 Affiliate

Percentage

29


30

Revenues

Annual Report 2009

In 2009, due to the financial crisis and unstable economic condition, Enemona registered a slight decrease in its Stand-Alone Revenues by 6.27% on an annual basis. The Stand-Alone Revenues of the company reached BGN 93.329 million as compared to BGN 99.576 million in 2008. On consolidated basis, however, the Group of companies recorded a revenue increase of 26.58% as compared to the previous year. In absolute value, in 2009, the Consolidated Revenues were BGN 190.359 million as compared to BGN 150.384 million in the previous one.

Stand-Alone Net Sales Revenues in 2009 - BGN 93.329 million Consolidated Net Sales Revenues in 2009 - BGN 190.359 million

Net Sales Revenue 200 150 100 50 0 mln BGN

2007

Stand-Alone Net Sales Revenues

2008

2009 Consolidated Net Sales Revenues

The increase in the Consolidated Revenues for the last year was due mainly to increased Sales Revenues from services and electrical energy, which grew by 344.78% and 121.43%, respectively.


Financial Results

Annual Report 2009

In 2009, the Stand-alone Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) reached BGN 16.171 million – a 12.35% annual increase. On consolidated basis, the Group’s EBITDA in 2009 reached BGN 26.701 million as compared to BGN 22.999 million in the previous year – a 16.10% annual increase.

EBITDA Figures Stand-Alone EBITDA in 2009 г. – BGN 16.171 million

30 25 20

Consolidated EBITDA in 2009 г. – BGN 26.701 million

15 10 5 0

mln BGN

2007

Stand-Alone EBITDA

2008

2009

Consolidated EBITDA

The main reasons for the higher operating financial result are the improved operating practices and larger volumes of the activities, carried out. Enemona’s 2009 Stand-Alone Net Income totaled BGN 9.988 million – a 21.21% annual increase. The Consolidated Net Income for the Group was BGN 15.225 million as compared to BGN 13.222 million in 2008 – a 15.15% annual increase.

Net Income 16 14 12 10 8 6 4 2 0 mln BGN

Stand-Alone Net Income in 2009 – BGN 9.988 million Consolidated Net Income in 2009 г. – BGN 15.225 million 2007

Stand-Alone Income

2008

2009

Consolidated Income

31


32

Financial Results

Annual Report 2009

In 2009, Enemona’s Stand-Alone Return on Equity (ROE) was 13.69%, whereas on consolidated basis it reached 14.79%.

Stand-Alone ROE in 2009 г. – 13.69% Consolidated ROE in 2009 г. – 14.79% ROE 19,5% 18,5% 17,5% 16,5% 15,5% 14,5% 13,5% 12,50%

2007 Stand-Alone

2008

2009 Consolidated

In 2009, the management of Enemona Group of companies continued to follow strictly the determined liquidity management and its policy for collecting of receivables, in order to achieve better operating results in a condition of economic and financial crisis.

Capital Structure and Financing In 2009, the Capital structure of the company changed, as follows:

Stand-Alone Capital Structure in 2009 Current Assets – BGN 65.824 million (a 20.4% annual increase) Non-Current Assets – BGN 5.996 million (a 59.5% annual decrease) Equity – BGN 72.980 million (a 16.5% annual increase) Consolidated Capital Structure in 2009 Current Assets – BGN 108.669 million (a 42.98% annual increase) Non-Current Assets – BGN 19.098 million (a 39.92% annual decrease) Equity – BGN 102,949 million (a 17.27% annual increase)


Liquidity

Annual Report 2009

Enemona’s Board of directors supports its creditors’ and bondholders’ interests, and the Group of companies maintains good liquidity ratios and pays its financial debts duly.

Current Liquidity Ratio

3,0 2,5 2,0 1,5 1,0 0,5 0,0 Stand-Alone

2007

2008

2009 Consolidated

Stand-Alone Current Liquidity Ratio in 2009 – 1.36 Consolidated Current Liquidity Ratio in 2009 – 1.16

Despite the fact that the economic crisis had strongly influenced the whole financial sector in Bulgaria, it did not influence the ability of Enemona to receive financial resources. For carrying out of its projects, the Group of companies is financially flexible and keeps its status of a good and reliable payer. The company maintains a limited exposition to liquidity risk, which is made possible thanks to the long-standing good co-operation with banks and other financial institutions.

33


34

Annual Report 2009

Annual Stand - Alone Financial Statements


Stand - Alone Statement of Financial Position as of December 31, 2009

Non-Current Asstes Property, plant and equipment Intangible assets Investments in subsidiaries and associates Other non-current assets Total Non-Current Assets Current Assets Inventories Trade and other receivables Gross amounts due from customers on construction contracts Other current assets Cash Total Current Assets Total Assets Equity Issued share capital Reserves Retained earnings Total Equity Non-Current Liabilities Loans Financial lease Long-term employee benefits Deferred tax liabilities, net Total Non-Current Liabilities Current Liabilities Trade and other payables Gross amounts due to customers under construction contracts Loans Financial lease Current tax liabilities Provisions Total Current Liabilities Total Equity and Liabilities All amounts are in thousand Bulgarian Levs, except otherwise stated

Annual Report 2009

As of 31.12.2009

As of 31.12.2008 (restated)

As of 01.01.2008 (restated)

26,511 859 18,572 9,662 55,604

28,191 950 14,177 6,544 49,862

18,052 1,018 6,720 2,958 28,748

12,720 31,549

18,799 28,970

20,911 20,281

29,026 4,474 11,427 89,196 144,800

15,087 4,452 14,937 82,245 132,107

674 29,875 71,741 100,489

42,771 18,619 11,590 72,980

42,771 8,665 11,214 62,650

42,771 814 10,892 54,477

3,126 1,716 174 980 5,996

10,413 3,433 95 854 14,795

14,822 904 734 16,460

11,515

13,606

8,497

14,145 37,816 1,002 1,106 240 65,824 144,800

7,891 29,275 2,682 1,019 189 54,662 132,107

5,452 13,623 1,013 767 200 29,552 100,489

35


36

Annual Report 2009

Stand - Alone Statement of Comprehensive Income for the year ended December 31, 2009

Year ended 31.12.2009

Year ended 31.12.2008 (restated)

Â

Revenue

90,230

95,859

1,654

1,557

(1,855)

(9,122)

Materials and consumables used

(16,870)

(20,291)

Hired services

(36,954)

(39,208)

Employee benefits expenses

(18,639)

(10,768)

Depreciation and amortization expenses

(1,803)

(1,672)

Other expenses

(2,790)

(5,136)

Other gains, net

1,445

2,160

Financial costs

(3,198)

(4,000)

Profit before tax

11,220

9,379

Income tax expenses

(1,232)

(1,139)

9,988

8,240

-

-

9,988

8,240

0.84

0.69

Financial income

Changes in inventories in finished goods and work in progress

Net profit for the year Other comprehensive income for the year Total comprehensive income for the year

Earnings per share

All amounts are in thousand Bulgarian Levs, except otherwise stated


Stand - Alone Cash Flow Statement for the year ended December 31, 2009

Annual Report 2009

Year ended 31.12.2009

37

Year ended 31.12.2008 (restated)

Cash flows from operating activities Receipts from customers

112,623

98,897

Payments to suppliers

(75,431)

(85,033)

Payments to employees

(20,077)

(9,469)

Profit tax paid

(1,025)

(767)

Payments for other taxes

(8,404)

(660)

Other cash flows from operating activities

(2,395)

(3,106)

Cash flows from operating activities, net

5,291

(138)

(3,310)

(6,887)

298

430

(4,209)

(13,579)

5,281

6,725

(4,823)

(7,460)

-

3

130

1

(6,633)

(20,767)

Proceeds from borrowings

22,251

32,856

Repayments of borrowings

(20,984)

(21,986)

Payments under lease agreements

(1,771)

(2,543)

Interest paid

(2,678)

(2,334)

-

(26)

Cash flows from/(used in) financial activities, net

(3,182)

5,967

Net decrease in cash and cash equivalents

(4,524)

(14,938)

Cash at the beginning of the period

14,937

29,875

Cash at the end of the period

10,413

14,937

1,014

-

11,427

14,937

Cash flows from financial activities Purchase for property, plant and equipment Proceeds from sale of property, plant and equipment Loans received/(granted) Proceeds from loan repayment Purchase of investments Proceeds from sales of investments Dividends received Cash flows (used in) investing activities, net Cash flows from financial activities

Other cash flows used in financial activities

Restricted cash Total cash in hand and at banks All amounts are in thousand Bulgarian Levs, except otherwise stated


38

Stand - Alone Statement of Changes in Shareholders’ Equity for the year ended December 31, 2009

Annual Report 2009

Premiums Share from issue of capital shares Balance at January 1, 2008

Legal reserves

Retained earnings

Total

11,934

-

39,509

7,912

59,355

-

30,837

(38,695)

2,980

(4,878)

11,934

30,837

814

10,892

54,477

Allocation of profit from prior years

-

-

7,871

(7,871)

-

Profit for the year (restated)

-

-

-

8,240

8,240

Other movements

-

-

(20)

(47)

(67)

Balance at December 31, 2008 (restated)

11,934

30,837

8,665

11,214

62,650

Allocations of profit from prior years

-

-

8,961

(8,961)

-

Allocations of profit from prior years for tantiemmes

-

-

-

(651)

(651)

Issue of warrants

-

-

993

-

993

Profit for the year

-

-

-

9,988

9,988

11,934

30,837

18,619

11,590

72,980

Effect of adjustments of errors Balance at January 1, 2008 (restated)

Balance at December 31, 2009

All amounts are in thousand Bulgarian Levs, except otherwise stated


Annual Report 2009

Annual Consolidated Financial Statements

39


40

Annual Report 2009

Consolidated Statement of Financial Position as of December 31, 2009

As of 31.12.2008 (restated)

As of 01.01.2008 (restated)

72,423

65,171

41,728

742

742

567

2,003

2,115

2,145

251

151

4

20,683

13,021

3,943

49

1,119

16

Goodwill

3,413

3,413

-

Other non-current assets

5,087

5,723

2,943

Total Non-Current Аssets

104,651

91,455

51,346

Inventories

20,715

27,505

26,102

Trade and other receivables Gross amounts due from customers on construction contracts

40,234

34,518

21,481

33,745

15,911

-

7,992

3,872

674

23,379

22,317

33,106

126,065

104,123

81,363

230,716

195,578

132,709

As of 31.12.2009

Non-Current Asstes Property, plant and equipment Investement property Intangible assets Investments in associates Non-current loans and receivables Financial assets available for sale

CURRENT ASSETS

Other current assets Cash Total Current Assets Total Assets

All amounts are in thousand Bulgarian Levs, except otherwise stated


Consolidated Statement of Financial Position (Continuation) as of December 31, 2009

Annual Report 2009

As of 31.12.2009

As of 31.12.2008 (restated)

41

As of 01.01.2008 (restated)

Equity Issued share capital

42,771

42,771

42,771

Reserves

24,339

10,177

1,330

Retained earnings

29,387

29,160

25,976

Total equity of the shareholoders of the Parent company

96,497

82,108

70,077

6,452

5,680

4,778

102,949

87,788

74,855

11,987

24,310

16,032

4,994

5,658

956

278

117

-

1,839

1,702

1,596

19,098

31,787

18,584

Trade and other payables Gross amounts due to customers under construction contracts

27,670

19,742

11,761

15,924

9,509

5,452

Loans

60,338

41,065

19,942

Financial lease

2,491

3,999

1,033

Current tax liabilities

1,612

1,401

821

634

287

261

108,669

76,003

39,270

230,716

195,578

132,709

Minority interest Total Equity Non-Current Liabilities Loans Financial lease Long-term employee benefits Deferred tax liabilities, net Total Non-Current Liabilities Current Liabilities

Accrued liabilities Total Current Liabilities Total Equity and Liabilities All amounts are in thousand Bulgarian Levs, except otherwise stated


42

Annual Report 2009

Consolidated Statement of Comprehensive Income for the year ended December 31, 2009

Year ended 31.12.2008 (restated)

Year ended 31.12.2009

 Revenue

183,644

143,785

4,068

3,021

(2,651)

(7,117)

Cost of goods sold

(55,643)

(23,874)

Materials and consumables used

(25,580)

(30,961)

Hired services

(41,051)

(41,502)

Employee benefits expenses

(34,516)

(17,432)

Depreciation and amortization expenses

(4,665)

(3,078)

Other expenses

(4,097)

(5,707)

Other gains, net

2,647

3,578

Financial costs

(5,160)

(5,812)

Profit before tax

16,996

14,901

Income tax expenses

(1,771)

(1,679)

Financial Income Changes in inventories in finished goods and work in progress

Â

Â

Net profit for the year Other comprehensive income for the year Total comprehensive income for the year Profit attributable to minority interests Profit attributable to the Parent company Share of the comprehensive income for the minority Share of the comprehensive income for the Parent company Earnings per share

15,225

13,222

-

-

15,225

13,222

409

582

14,816

12,640

409

582

14,816

12,640

1.24

1.06

All amounts are in thousand Bulgarian Levs, except otherwise stated


Consolidated Cash Flow Statement for the year ended December 31, 2009

Annual Report 2009

Year ended 31.12.2009

43

Year ended 31.12.2008 (restated)

Cash flows from operating activities Receipts from customers

206,047

149,541

(134,445)

(125,299)

(35,039)

(15,525)

(1,576)

(1,030)

(10,604)

(338)

Other cash flows from operating activities

(2,636)

(7,598)

Cash flows from operating activities, net

21,747

(249)

(21,664)

(19,939)

300

585

Payments for acquisition of investment properties

-

(160)

Acquisition of investments in subsidiaries, net of cash of subsidiaries

-

(3,390)

(8,026)

(13,280)

7,387

4,805

(3,553)

(3,250)

-

1,137

Purchase of investments

(139)

(141)

Proceeds from sales of investments

4,282

3

33

1

(21,380)

(33,629)

Proceeds from borrowings

58,399

49,456

Repayments of borrowings

(51,178)

(18,616)

-

565

Payments under lease agreements

(3,089)

(3,791)

Interest paid

(4,168)

(4,072)

Dividends

(113)

-

Other cash flows used in financial activities

(330)

(453)

Cash flows from/(used in) financial activities, net

(479)

23,089

Net decrease in cash and cash equivalents

(112)

(10,789)

Cash at the beginning of the period

22,317

33,106

Cash at the end of the period

22,205

22,317

Restricted cash Total cash in hand and at banks

1,174 23,379

22,317

Payments to suppliers Payments to employees Profit tax paid Payments for other taxes

Cash flows from investing activities Purchase for property, plant and equipment Proceeds from sale of property, plant and equipment

Loans granted Proceeds from loan repayment Purchase of loans and receivables Interest received and principals on financial assets

Dividends received Cash flows (used in) investing activities, net Cash flows from financing activities

Proceeds from issue of shares

All amounts are in thousand Bulgarian Levs, except otherwise stated


Consolidated Statement of Changes in Shareholders’ Equity for the year ended December 31, 2009

44 A n n u a l R e p o r t 2 0 0 9

Share Premiums capital from issue of shares Balance at January 1, 2008

Legal Other reserves reserves

Retained earnings

Minority interest

Total

14,838

14,952

3,000

79,780

(33,726) (14,838)

11,024

1,778

(4,925)

11,934

-

-

30,837

11,934

30,837

1,330

-

25,976

4,778

74,855

Allocation of profit from prior years

-

-

9,158

-

(9,158)

-

-

Profit for the year (restated)

-

-

-

-

12,640

582

13,222

Changes in minority interest

-

-

-

-

-

320

320

Distribution of dividends

-

-

-

-

(319)

-

(319)

Other movements

-

-

(311)

-

21

-

(290)

11,934

30,837

10,177

-

29,160

5,680

87,788

Allocations of profit from prior years

-

-

13,169

-

(13,169)

-

-

Allocation of tantiemmes

-

-

-

-

(651)

-

(651)

Allocation of dividends

-

-

-

-

(447)

-

(447)

Issue of warrants

-

-

-

993

-

-

993

Profit for the year

-

-

-

-

14,816

409

15,225

Changes in minority interest

-

-

-

-

-

363

363

Other movements

-

-

-

-

(322)

-

(322)

11,934

30,837

23,346

993

29,387

Effect of adjustments of errors Balance at January 1, 2008 (restated)

Balance at December 31, 2008 (restated)

Balance at December 31.2009

35,056

6,452 102,949

All amounts are in thousand Bulgarian Levs, except otherwise stated


Investor Relations Director Svetlana Alexandrova 1113, Sofia 20, Kosta Lulchev Str. Tel.: +359 2 80 54 864 Fax: +359 2 80 54 790 ะต-mail: s.aleksandrova@enemona.com Corporate Policy Manager Prokopi Prokopiev 1113, Sofia 20, Kosta Lulchev Str. Tel.: +359 2 80 54 759 Fax: +359 2 80 54 837 ะต-mail: pdp@enemona.com

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