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Dalekovod d.d. Interim / Quarterly Report 2019
2088_10-q_2019-11-05_00a6de89-d338-4ca0-b2de-4c9629f64eea.pdf
Interim / Quarterly Report
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www.dalekovod.hr, Ulica Marijana Čavića 4, Zagreb
Zagreb, 30 October 2019.
MANAGEMENT REPORT FOR I – IX 2019
Unaudited, consolidated and separate
| 1. | MANAGEMENT REPORT 2 | |
|---|---|---|
| 2. | DECLARATION 6 | |
| 3. | STATEMENT OF FINANCIAL POSITION (unaudited) 7 | |
| 4. | INCOME STATEMENT (unaudited) 9 | |
| 5. | CASH FLOW STATEMENT (unaudited)11 | |
| 6. | STATEMENT OF CHANGES IN EQUITY (unaudited)13 | |
| 7. | NOTES TO FIANCIAL STATEMENTS 14 | |
1. MANAGEMENT REPORT
Key financial indicators for the period 1.1.-30.9.2019.
During the third quarter of 2019, intensive business activity continued with regard to project activities, "tendering" and contracting. Business result of Dalekovod Group (Group) and Dalekovod d.d. (Company) in the third quarter was marked by a significant increase in profitability compared to the same period last year, with almost the same level of business revenues. If we look at the business period since the beginning of the year, there has also been a significant increase in profitability with a slightly lower level of business revenues. Earnings before interest and taxes "EBIT" of the Group increased by almost HRK 29 million in the first nine months, and earnings before interest, taxes and depreciation "EBITDA" increased by almost HRK 23 million compared to the same period last year. in the first nine months of this year, EBIT increased by HRK 41 million, and EBITDA HRK 36 million compared to the same period last year. The Group's poorer performance compared to the Company was mostly influenced by operations of company Proizvodnja MK i OSO d.o.o. which generated negative EBITDA of HRK 14.7 million over nine months. In line with the growth of the EBIT and EBITDA level, in the first nine months, Group's net profit (+ HRK 68 million) and the Company's (+ HRK 70 million) also increased compared to the same period of the previous year.
| Dalekovod Group in 000 hrk | 2018 | 2019 | ||
|---|---|---|---|---|
| I-IX | VI-IX | I-IX | VI-IX | |
| Business revenue | 915.784 | 327.548 | 886.601 | 329.815 |
| EBIT | -36.824 | -37.166 | -7.971 | 997 |
| EBITDA | -3.906 | -26.184 | 18.971 | 9.618 |
| Net profit | -45.538 | -36.665 | 22.381 | -7.661 |
| Dalekovod d.d. in 000 hrk | 2018 | 2019 | |||
|---|---|---|---|---|---|
| I-IX | VI-IX | I-IX | VI-IX | ||
| Business revenue | 702.110 | 237.616 | 665.968 | 249.928 | |
| EBIT | -31.787 | -31.798 | 9.316 | 4.800 | |
| EBITDA | -6.008 | -23.249 | 29.868 | 11.249 | |
| Net profit | -34.959 | -30.945 | 35.778 | -907 |
Despite the increase in profitability, the Group still operates with limited liquidity and depends on the support of key creditors, financial institutions. Limited liquidity is still largely the result of a negative performance in 2018, pre-bankruptcy settlement, and current working capital needs with goal of supporting the growth of business activities and the process of operational restructuring.
Similar to previous periods, the majority of the Company's revenue, 83%, comes from the Transmission line sector, 13% from the Infrastructure sector and 4% from the Substation sector. Analyzing geographical activity, the Company continues to generate a very large share of its revenue in foreign markets, which is a consequence of the decrease in activity and the delay of numerous tenders on the domestic market. Among the numerous projects of the transmission line sector, we would point out the operationally demanding Norwegian project 420 kV Modalen - Mongstad, which is in final phase , which, during the year, had a negative impact on the gross profit of the Company.
As already mentioned in the text, the company Poizvodnja MK i OSO d.o.o. had a significant negative contribution to the Group's overall performance. Such a result is consequence of lack of liquidity, difficulties in the procurement of raw materials, which ultimately reflected in the dynamics of production, increased costs and business result. In addition to the ongoing restructuring process in the company, Group's management is actively working to find a long-term solution for the company.
| Group: Business revenue in 000 hrk | 2018 | 2019 | ||
|---|---|---|---|---|
| I-IX | VI-IX | I-IX | VI-IX | |
| Dalekovod d.d. | 702,110 | 237,616 | 665,968 | 249,928 |
| Proizvodnja MK i OSO d.o.o. | 219,629 | 91,632 | 160,533 | 54,362 |
| Dalekovod Mostar d.o.o. | 48,627 | 19,977 | 49,443 | 13,161 |
| Dalekovod Projekt d.o.o. | 19,126 | 4,415 | 26,351 | 7,850 |
| Cinčaonica usluge d.o.o. | 0 | 0 | 30,313 | 13,620 |
| EMU | 2,085 | 542 | 2,320 | 741 |
| Other connected companies | 23,780 | 9,736 | 23,525 | 13,954 |
| Eliminations | -99,573 | -36,370 | -71,852 | -23,801 |
| Total | 915.784 | 327.548 | 886.601 | 329.815 |
| Group: EBITDA in 000 hrk | 2018 | 2019 | ||
|---|---|---|---|---|
| I-IX | VI-IX | I-IX | VI-IX | |
| Dalekovod d.d. | -6,008 | -23,249 | 29,868 | 11,249 |
| Proizvodnja MK i OSO d.o.o. | 1,204 | -3,346 | -14,736 | -2,932 |
| Dalekovod Mostar d.o.o. | 2,045 | 1,014 | 2,318 | 363 |
| Dalekovod Projekt d.o.o. | -1,364 | -2,022 | 410 | -133 |
| Cinčaonica usluge d.o.o. | 0 | 0 | 3,000 | 501 |
| EMU | -225 | -44 | 537 | 166 |
| Other connected companies | 4,348 | 27,647 | -21,050 | -9,214 |
| Eliminations | 0 | 0 | -347 | 0 |
| Total | -3.906 | -26.184 | 18.971 | 9.618 |
The Group's total assets decreased compared to the last day of the previous year, mainly as a result of sale of Dalekovod Professio d.d., a decrease in receivables from retentions and change in the item cash. The increase in receivables was largely due to the increase in trade receivables from abroad, due to increased project activities. On the liability side, there was a decrease in financial debt and an increase in equity compared to the last day of the previous year, due to positive net result of the group in the first nine months of 2019. Since the beginning of the year, Group has paid almost HRK 100 million to financial and credit institutions, which has had a significant impact on the Group's current liquidity.
| Dalekovod Group in 000 hrk | 12-2018 | 9-2019 |
|---|---|---|
| Financial debt | 520.398 | 454.402 |
| Cash | 66.179 | 24.986 |
| Net debt | 454.219 | 429.416 |
| Separate satisfactory debt* | 66.673 | 66.673 |
| Mezzanine* | 83.807 | 29.221 |
| Net debt (without separate satisfactory debt and mezzanine) | 303.739 | 333.522 |
* financial debt which has no impact on the operating business and is not covered from operating cash flow
Market perspective
Trends started earlier this year continued throughout the third quarter. From the beginning of the year until the date of this report, the Company has contracted or has been selected as the most favorable bidder in projects worth more than HRK 1,400 million, which classifies this year as one of the most promising business years. Current value of the won or contracts for which the Company has been selected as the most favorable bidder is more than HRK 2,200 million. The biggest challenge that accompanies such a strong activity is the operational excellence of managing multiple projects and growing need for workforce. In addition to two most important markets, Norway and Sweden, the Company participates in numerous "tenders" in German market (where it successfully prequalified last year), which, given the amount of planned investments, is the most important European market and as such, very important for future development of Company's business .
Considering the aforementioned market perspective and the success of tenders so far, the management of the Group places the greatest emphasis on the need to ensure sufficient guarantee frameworks with commercial banks, which is the most important lever for successful execution of business activities in the coming period.
-
3. STATEMENT OF FINANCIAL POSITION (unaudited)
| Separate Statement of financial position | 31 December 2018 | 30 September 2019 |
|---|---|---|
| ASSETS | 878.374.309 | 890.998.230 |
| Non current assets | 415.295.707 | 413.652.362 |
| Intangible assets | 7.575.844 | 4.506.720 |
| Tangible assets | 293.500.000 | 288.575.098 |
| Non current financial assets | 86.145.883 | 90.876.133 |
| Trade receivables | 28.073.980 | 29.694.411 |
| Current assets | 463.078.602 | 477.345.868 |
| Inventories | 11.642.356 | 9.704.126 |
| Other available-for-sale assets | 73.375.145 | |
| Receivables | 291.009.356 | 398.805.129 |
| Current financial assets | 33.151.080 | 47.084.622 |
| Cash on hand and in the Bank | 51.076.527 | 16.916.660 |
| Prepayments and accrued income | 2.824.138 | 4.835.331 |
| Off-Balance sheet items | 475.674.346 | 356.318.600 |
| EQUITY AND LIABILITES | 878.374.309 | 890.998.230 |
| Capital and reserves | 25.913.115 | 59.597.297 |
| Share capital | 247.193.050 | 247.193.050 |
| Capital reserves | 88.235.980 | 86.141.670 |
| Reserves from profit | 43.675.007 | 43.675.007 |
| Revaluation reserves | 40.706.979 | 40.706.979 |
| Retained earnings or loss brought forward | (160.874.981) | (393.897.901) |
| Profit or (loss) for the financial year | (233.022.920) | 35.778.492 |
| Provisions | 23.548.349 | 23.351.328 |
| Non-current liabilities | 413.517.418 | 405.805.347 |
| Liabilites to related parties | 9.817.413 | 9.928.175 |
| Liabilities towards banks and other financial institutions | 350.111.986 | 340.526.180 |
| Amounts payable for securities | 43.797.127 | 46.073.228 |
| Trade payables | 855.214 | 342.086 |
| Deffered tax | 8.935.678 | 8.935.678 |
| Current liabilities | 415.395.427 | 402.244.258 |
| Liabilites to related parties | 21.917.078 | 19.055.812 |
| Liabilities toward participating interests | 19.209 | 19.209 |
| Liabilities towards banks and other financial institutions | 48.442.592 | 57.650.142 |
| Amounts payable for securities | 58.695.787 | 420.661 |
| Trade payables | 254.710.111 | 292.610.854 |
| Accrued expenses and deferred income | 31.610.650 | 32.487.580 |
| Off-Balance sheet items | 475.674.346 | 356.318.600 |
| Consolidated Statement of financial position | 31 December 2018. 30 September 2019. | |
|---|---|---|
| ASSETS | 1.072.667.491 | 1.040.136.380 |
| Non current assets | 425.155.408 | 410.779.652 |
| Intangible assets | 10.696.580 | 6.464.731 |
| Tangible assets | 361.349.842 | 347.162.386 |
| Non current financial assets | 24.900.041 | 27.323.437 |
| Trade receivables | 28.208.945 | 29.829.098 |
| Current assets | 647.512.083 | 629.356.728 |
| Inventories | 97.419.459 | 100.757.533 |
| Other available-for-sale assets | 65.037.377 | |
| Receivables | 389.513.637 | 471.565.150 |
| Current financial assets | 25.083.021 | 26.297.681 |
| Cash on hand and in the Bank | 66.179.291 | 24.985.965 |
| Prepayments and accrued income | 4.279.298 | 5.750.399 |
| Off-Balance sheet items | 519.157.671 | 403.262.913 |
| EQUITY AND LIABILITES | 1.072.667.491 | 1.040.136.380 |
| Capital and reserves | 82.319.251 | 101.029.512 |
| Share capital | 247.193.050 | 247.193.050 |
| Capital reserves | 88.235.980 | 86.141.670 |
| Reserves from profit | 76.091.965 | 74.515.022 |
| Revaluation reserves | 40.706.979 | 40.706.979 |
| Retained earnings or loss brought forward | (249.638.779) | (369.208.977) |
| Profit or (loss) for the financial year | (119.570.198) | 22.381.228 |
| Minority interest | (699.746) | (699.460) |
| Provisions | 29.036.593 | 28.799.030 |
| Non-current liabilities | 403.981.676 | 396.652.756 |
| Liabilities towards banks and other financial institutions | 350.482.561 | 341.233.243 |
| Amounts payable for securities | 43.797.126 | 46.073.312 |
| Trade payables | 766.311 | 410.523 |
| Deffered tax | 8.935.678 | 8.935.678 |
| Current liabilities | 557.329.971 | 513.655.083 |
| Liabilities towards banks and other financial institutions | 68.055.397 | 67.094.699 |
| Amounts payable for securities | 58.062.705 | |
| Trade payables | 406.683.719 | 415.941.483 |
| Accrued expenses and deferred income | 24.528.150 | 30.618.900 |
| Off-Balance sheet items | 519.157.671 | 403.262.913 |
4. INCOME STATEMENT (unaudited)
| Separate Income statement | 03 2018 | GBZ BD |
|---|---|---|
| Operating income | 702.109.710 | 665.967.903 |
| Sales revenue | 673.087.961 | 643.916.747 |
| Other operating income | 29.021.749 | 22.051.156 |
| Operating expenses | 733.897.084 | 656.651.765 |
| Changes in inventories of finished products and work in progress | 21.168 | |
| Material costs | 461.515.592 | 394.678.493 |
| Staff costs | 163.186.359 | 164.970.439 |
| Depreciation and amortisation | 25.779.093 | 20.551.504 |
| Other expenditures | 12.068.470 | 9.752.740 |
| Value adjustments | ||
| Other operating expenses | 71.326.402 | 65.086.303 |
| Provisions | 1612 286 | |
| Financial income | 44.523.010 | 48.458.216 |
| Financial costs | 47.694.243 | 21.995.862 |
| Share of income/(loss) of associates. | ||
| Total income | 746.632720 | 714.4269115 |
| Total expenses | 781.591.327 | 678.647.627 |
| Profit or (loss) before tax | (34.958.607) | 35.778.492 |
| Income tax expense | ||
| Profit or (loss) for the period | (34.958.607) | 35 778.492 |
| Consolidated Income statement | Q3 2018 | Q3 2019 |
|---|---|---|
| Operating income | 915.784.067 | 886.601.026 |
| Sales revenue | 882.050.999 | 864.979.306 |
| Other operating income | 33.733.068 | 21.621.720 |
| Operating expenses | 952.608.464 | 894.576783 |
| Changes in inventories of finished products and work in progress | (1.927.422) | (6.686.979) |
| Material costs | 582.817.956 | 541.093.494 |
| Staff costs | 230.289.022 | 230.695.672 |
| Depreciation and amortisation | 32 918 698 | 26.941.345 |
| Other expenditures | 24.240.450 | 20.411.881 |
| Value adjustments | ||
| Provisions | 16.376 | 1.615.013 |
| Other operating expenses | 84.253.384 | 80.501.307 |
| Financial income | 40.143.576 | 55.569.102 |
| Financial costs | 48.655.477 | 24.988.534 |
| Share of income/(loss) of associates | ||
| Total income | 955,927.643 | 942.170.128 |
| Total expenses | 1.001.263.941 | 919,560.267 |
| Profit or (loss) before tax | (45.336.298) | 22.609.862 |
| Income tax expense | 202.043 | 228.634 |
| Profit or (loss) for the period | (45.538.341) | 22381.228 |
5. CASH FLOW STATEMENT (unaudited)
| Separate Cash Flow Statement | Q3 2018 | Q3 2019 |
|---|---|---|
| Cash flow from operating activities | ||
| Profit before taxation | (34.958.607) | 35.778.492 |
| Depreciation and amortisation | 25.779.093 | 20.551.504 |
| Gains and losses from sale and unrealised gains and losses and value | ||
| adjustment of financial assets | 1.350.294 | (38.152.410) |
| Interest and dividend income | (18.893.531) | (4.013.932) |
| Interest expenses | 14.733.471 | 8.890.606 |
| Provisions | (353.647) | (197.022) |
| Exchange rate differences (unrealised) | 1.352.952 | 1.272.004 |
| Other adjustments for non-cash transactions and unrealised gains and losses | (2.094.311) | |
| Cash flow increase or decrease before changes in working capital | (10.989.975) | 22.034.931 |
| Changes in the working capital | 70.950.944 | (72.729.443) |
| Increase or decrease in short-term liabilities | (643.542) | 10.817.895 |
| Increase or decrease in short-term receivables | 47.523.659 | (121.972.723) |
| Increase or decrease in inventories | 37.207 | 1.938.230 |
| Other increase or decrease in working capital | 24.033.620 | 36.487.155 |
| Cash from operations | 59.960.969 | (50.694.512) |
| Interest paid | (9.924.981) | (6.873.655) |
| Income tax paid | ||
| NET CASH FLOW FROM OPERATING ACTIVITIES | 50.035.988 | (57.568.167) |
| Cash flow from investment activities | ||
| Cash receipts from sales of fixed tangible and intangible assets | 317.622 | |
| Cash receipts from sales of financial instruments | 100.000 | 108.702.713 |
| Interest received | 2.021.978 | 1.022.942 |
| Dividends received | 4.907.027 | 1.403.330 |
| Cash receipts from repayment of loans and deposits | 1.314.653 | 10.890.154 |
| Cash payments for the purchase of fixed tangible and intangible assets | (32.482.235) | (12.557.478) |
| Cash payments for loans and deposits for the period | (7.738.558) | (15.470.903) |
| Acquisition of a subsidiary, net of cash acquired | (20.000) | |
| NET CASH FLOW FROM INVESTMENT ACTIVITIES | (31.559.513) | 93.970.758 |
| Cash flow from financial activities | ||
| Cash receipts from credit principals, loans and other borrowings | 8.915.781 | 24.830.780 |
| Cash payments for the repayment of credit principals, loans and other | ||
| borrowings and debt financial instruments | (11.191.961) | (89.107.576) |
| Cash payments for finance lease | (11.656.687) | (6.285.662) |
| NET CASH FLOW FROM FINANCING ACTIVITIES | (13.932.867) | (70.562.458) |
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 89.349.072 | 51.076.527 |
| Increase/(decrease) of cash and cash equivalents | 4.543.607 | (34.159.867) |
| Consolidated Cash Flow Statement | Q3 2018 | Q3 2019 |
|---|---|---|
| Cash flow from operating activities | ||
| Profit before taxation | (45.336.298) | 22.609.862 |
| Depreciation and amortisation | 32.918.698 | 26.941.345 |
| Gains and losses from sale and value adjustment of fixed tangible and | ||
| intangible assets | (234.590) | (80.562) |
| Gains and losses from sale and unrealised gains and losses and value | ||
| adjustment of financial assets | 1.326.799 | (44.897.692) |
| Interest and dividend income | (2.260.491) | (722.969) |
| Interest expenses | 24.239.397 | (12.050.598) |
| Provisions | (24.630.190) | 1.612.286 |
| Exchange rate differences (unrealised) | (1.818.046) | (2.496.552) |
| Other adjustments for non-cash transactions and unrealised gains and | ||
| osses | (15.794.720) | (9.084.880) |
| Cash flow increase or decrease before changes in working capital | 77.581.393 | (38.357.307) |
| Increase or decrease in short-term liabilities | 9.618.670 | 9.257.764 |
| Increase or decrease in short-term receivables | 90.852.736 | (82.051.513) |
| Increase or decrease in inventories | (8.487.050) | (3.338.074) |
| Other increase or decrease in working capital | (14.402.963) | 37.774.516 |
| Cash from operations | 61.786.672 | (47.442.187) |
| Interest paid | (10.249.783) | (7.481.546) |
| Income tax paid | ||
| NET CASH FLOW FROM OPERATING ACTIVITIES | 51.536.889 | (54.923.733) |
| Cash flow from investment activities | ||
| Cash receipts from sales of fixed tangible and intangible assets | 427,506 | |
| Cash receipts from sales of financial instruments | 100.000 | 108.702.713 |
| Interest received | 2.083.807 | 652.397 |
| Other cash receipts from investment activities | 349.536 | |
| Cash payments for the purchase of fixed tangible and intangible assets | (34.072.071) | (5.487.632) |
| Cash payments for loans and deposits for the period | (11.091.528) | |
| Other cash payments from investment activities | (2.567.940) | |
| NET CASH FLOW FROM INVESTMENT ACTIVITIES | (34.028.698) | 93.125.486 |
| Cash flow from financial activities | ||
| Cash receipts from credit principals, loans and other borrowings | 14.878.850 | 24.830.780 |
| Other cash receipts from financial activities | 8.442.600 | |
| Cash payments for the repayment of credit principals, loans and other | ||
| borrowings and debt financial instruments | (28.182.513) | (97.767.376) |
| Cash payments for finance lease | (11.930.268) | (6.458.483) |
| Other cash payments from financing activities | (339.158) | |
| NET CASH FLOW FROM FINANCING ACTIVITIES | (17.130.489) | (79.395.079) |
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 107.378.391 | 66.179.291 |
| Increase/(decrease) of cash and cash equivalents | 377.702 | (41.193.326) |
| CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 107.756.093 | 24.985.965 |
6. STATEMENT OF CHANGES IN EQUITY (unaudited)
| Separate Statement of changes in equity | 31 December 2018 | 30 September 2019 |
|---|---|---|
| Share capital | 247.193.050 | 247.193.050 |
| Capital reserves | 88.235.980 | 86.141.670 |
| Profit reserves | 43.675.007 | 43.675.007 |
| Retained earnings or loss carried forward | (160.874.981) | (393.897.901) |
| Profit or (loss) of the current year | (233.022.920) | 35,778,492 |
| Revaluation of fixed tangible assets | 40.706.979 | 40.706.979 |
| Total capital and reserves | 25.913.115 | 59.597.297 |
| Other equity changes | (260.697.188) | 33.684.182 |
| Total equity increase or decrease | (260.697.188) | 33.684.182 |
| Consolidated Statement of changes in equity | 31 December 2018 30 September 2019 | |
|---|---|---|
| Share capital | 247.193.050 | 247.193.050 |
| Capital reserves | 88.235.980 | 86.141.670 |
| Profit reserves | 76.091.965 | 74.515.022 |
| Revaluation of fixed tangible assets | 40.706.979 | 40.706.979 |
| Retained earnings or loss brought forward | (249.638.779) | (369.208.977) |
| Profit or (loss) of the current year | (119.570.198) | 22.381.228 |
| Total capital and reserves | 83.018.997 | 101.728.972 |
| Exchange rate differences from translation of foreign operations | 1.225.179 | (1.576.657) |
| Other equity changes | (28.695.510) | |
| Total equity increase or decrease | (27.470.331) | (1.576.657) |
| Total attributable to owners of the parent | 83.018.997 | 101.728.972 |
| Minority (non-controlling) interest | (699.746) | (699.460) |
7. NOTES TO FIANCIAL STATEMENTS
I. BASIC INFORMATION
MANAGEMENT BOARD
Tomislav Rosandić – President of the Management Board
Tomislav Đurić – Management Board Member
Ivan Kurobasa – Management Board Member
Đuro Tatalović – Management Board Member
SUPERVISORY BOARD
UNTIL 21.03.2019.
Željko Perić – President
Hrvoje Markovinović – Member
Hrvoje Habuš – Member
Dinko Novoselec – Member
Gordan Kuvek – Member
Vladimir Maoduš – Member
Rajko Pavelić – Member
FROM 21.03.2019. Željko Perić - President Hrvoje Markovinović - Member Toni Đikić - Member Dinko Novoselec - Member Gordan Kuvek - Member Vladimir Maoduš - Member Rajko Pavelić - Member
Dalekovod JSC for engineering, production and construction Marijana Čavića 4, 10 000 Zagreb, Croatia 10001 Zagreb, P.P. 128 URL: www.dalekovod.hr, www.dalekovod.com E-mail: [email protected] Share capital: 247,193,050.00 HRK. Number of shares: 24,719,305 IBAN: HR8323600001101226102 ZABA Zagreb Reg. No.: 080010093, Commercial Court in Zagreb Stat. No.: 3275531 PIN: 47911242222 Activity code: 4222 (Construction of electricity and telecommunications lines)
II. SHAREHOLDERS STRUCTURE (on 30 September 2019):
| Konsolidator d.o.o. | 15.000.000 |
|---|---|
| Domestic natural persons | 5.093.156 |
| Financial institutions | 3.871.324 |
| Others | 655.984 |
| Own shares | 98.841 |
| TOTAL | 24.719.305 |
III. ACQUISITIONS, MERGERS, SALE FOUNDATION
During the first six months, Dalekovod Professio d.o.o. and Liburana d.o.o. are sold, Cinčaonica usluge d.o.o. is founded and takes over the galvanizing activity of the company Proizvodnja MK i OSO d.o.o. and Dalcom Gmbh is shut down.
There were no other statutory changes.
IV. UNCERTAINTY
There were no identified suspicious or disputable claims in the first nine months of 2019 which would affect the continuity of business.
V. DESCRIPTION OF PRODUCTS AND SERVICES
Over time, Dalekovod d.d. specialized for the realization of "turn-key" contracts in the following fields:
- electricity facilities, especially transmission lines between 0.4 and 750 kV
- transformer substations of all levels and voltages up to 500 kV
- air, underground and underwater cables up to 100 kV
- telecommunications facilities, all types of networks and antennas
- production of suspension and jointing equipment for all types of transmission lines and substations between 0.4 and 750 kV
- manufacture and installation of all metal parts for roads, especially for road lighting, security barriers and traffic signals, tunnel lighting and traffic management
- electrification of railroads and tramways
VI. CHANGES IN ACCOUNTING POLICIES
There are no new accounting policies.