Stakeholders

Ceo Letter

Dear shareholders and business partners,
We have witnessed yet another year in which our Company continued to deliver success in its operations and generate profit to its shareholders. Despite unfavourable market conditions we have stayed engaged in pursuing our ambitious goals in order to achieve the planned financial results which may be less impressive than one year ago but represent a significant accomplishment against the backdrop of the difficult times that the energy sector is facing in Europe.

Our number one priority remains safety and in 2014 the Company achieved positive results with Frequency rate 0,42 and severity Index 0,01, which makes us one more step closer to our main goal „Zero Accidents“.

Outstanding operational results were delivered by our nuclear fleet which reached 15 499 GWh in electricity production. We were able to confirm the company position as one of the best in class worldwide as to safety performance and operational reliability, proving Slovenské elektrárne as a center of nuclear excellence within the Group and as a top VVER technology operator.

In terms of the key project of the Company and one of the largest investment projects in the history of Slovakia, the Completion of Unit 3 and 4 of the Nuclear Power Plant Mochovce, both shareholders reconfirm their commitment to complete the project and approved a reviewed budget of 4,6 mln euro, setting measures to strengthen project management and control. Unit 3 has reached 80% of completion. Operators have been already trained in the simulator, which was completed in 2014.

The operation of our thermal power plants keeps contributing to the stability of the national grid and ensuring a flexible response to regulation demand. In Novaky we started the preparation phase for the modernization of 2 units in order to prolong the lifetime of operation and respect new environmental limits. In Vojany we are able in co-firing biomass reaching production of 47 GWh.

Another milestone in 2014 was the successful completion of the project to raise the level of the upper reservoir of the Čierny Váh pumped storage hydro power plant. This reconfirms our commitment to modernization of Hydro power plants.

Altogether, we are able to produce 92% of our energy without CO2 emmissions.

Slovenské elektrárne keeps proving its role of a major player on the Central European electricity market, but there are responsibilities coming with this role. Despite unfavourable market scenario we are continuously improving our processes from operation to central functions, achieving important savings and having leaner and more effective organization.

We continue investing in our people through training, as for example info - training centre Energoland, opened in October 2014 and representing the combination of education and entertainment for all our stakeholders.

The Company keeps developing its presence on the markets of the neighboring countries through its branches as well as developing projects in the area of energy efficiency, where we have achieved importnat results together with municipalities and industrial partners.

We kept on our relationship with communities through many initiatives in the Energy for the Country program. We are proud also to receive the most prestigious award for CSR in Slovakia “Via Bona”.

We believe that excellence may only be built on strong foundations of respecting the values and principles which must be put over the Company´s profit – allowing no compromise on safety and respect towards all stakeholders.

Nicola Cotugno Nicola Cotugno

Slovenské elektrárne

The core business of Slovenské elektrárne is the production and sale of electricity. In terms of available installed capacity, Slovenské elektrárne is the largest electricity producer in Slovakia, also generating and selling heat and providing ancillary services for the power grid.

The Company has an installed capacity of 5 267,46 MW with an ideal production mix – nuclear, water and conventional sources in combination with biomass cofiring and photovoltaic sources. It operates thirty-five hydro power plants, two nuclear power plants, two thermal power plants and two photovoltaic power plants.

The objective of the Company is to generate, sell and trade electricity and heat in a safe, reliable, efficient and competitive way and to manage radioactive waste and spent nuclear fuel in a safe manner while continuously reducing the adverse environmental impacts of production processes. Thanks to the balanced portfolio of clean technologies combining water, biomass, photovoltaic and nuclear energy, 92 % of the generated electricity is without greenhouse gas emissions.

Vision

To be the safest, most innovative and competitive energy producer in Central-Eastern Europe creating value for our customers, shareholders and employees.

Mission

To produce and supply safe, affordable and environmentally friendly energy for all our customers.

Integrated policy

Sustainability

Slovenské elektrárne confirms its commitment to sustainability, which is about business from strategic planning, to business development, to operations and management.

Sustainability is driven by strategy and stakeholders expectations.

Slovenské elektrárne defines Sustainability as the Company’s capacity to prosper in a competitive and changing global business environment by anticipating and managing current and future economic, environmental and social opportunities and risks and focusing on quality, innovation and productivity to create competitive advantage and long-term value.

Being an intrinsic part of the Company’s activities Sustainability is composed of three main areas, that are integrated and aimed at the same target – value creation.

Value creation

The objectives of Slovenské elektrárne for the upcoming years are very ambitious. In order to maintain the highest safety level of the Company‘s power plants, as well as their reliability and competitiveness, constant improvement is a must. The Performance Excellence Initiative is one of the projects for continuous improvement in Slovenské elektrárne. The Initiative is made of several sub-projects, focused on the implementation of new procedures, applying safety culture principles, changing the approach to the reliability of the human element and of employees to their work duties, successions system solutions, and sharing knowledge and experience.

Implementation of the Performance Excellence Initiative was finished in the conventional power plants in 2013 and continued in the nuclear power plants in 2014. The nuclear fleet received training in the area of safety culture, with the goal to implement the safety culture principles and boost the employee trust towards the company. Training also focused on Error prevention tools with the goal to improve human reliability and develop a new approach to succession planning.

As part of the Initiative, the Enel group global project "One Safety – Observing Risky Behaviors“ was implemented at all conventional power plans. The objective of this global initiative is to eliminate risky behavior and to lower the number of accidents and near misses, with the ultimate goal to approach the target of „Zero Accidents.“

Performance Improvement Programme
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