Financial Results ZSE Group - Skupina ZSE
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Financial results
ZSE Group

ZSE Group is a leading energy group in Slovakia.

In 2002 it became a part of the German energy group E.ON. On 1st July 2007 ZSE established subsidiaries – for the operation of distribution system and for energy trading and sales. This split was based on the European Union Directive on common rules for the internal market in electricity that has been implemented into Slovak legislation by Act No. 656/2004 Coll. on Energy.

On April 8, 2022, E.ON SE (hereinafter referred to as "E.ON") and the Slovak Republic, represented by the Ministry of Economy of the Slovak Republic (hereinafter referred to as the "State"), concluded a Contract for Future Consolidation, on the basis of which the consolidation of ZSE and Východoslovenská energetika Holding a.s. (hereinafter also "VSEH"), in which they are direct or indirect sole shareholders, took place by the end of 2023. Based on the Contract, a contribution of 100% of VSEH shares to ZSE was made, whereby the company VSEH became a subsidiary of ZSE, and subsequently the sale of VSEH subsidiaries to ZSE.

The ZSE Group currently consists of the parent company, which is Západoslovenská energetika, a.s., and its following 100% subsidiaries:

  • Západoslovenská distribučná, a.s. (ZSD),
  • ZSE Energia, a.s. (ZSE Energia),
  • ZSE Elektrárne, s.r.o. (ZSE Elektrárne),
  • Východoslovenská energetika Holding a.s.
  • Východoslovenská energetika a.s. (VSE),
  • Východoslovenská distribučná, a.s. (VSD),
  • ZSE Energy Solutions, s.r.o.,
  • ZSE MVE, s. r. o.,
  • ZSE Business Services, s. r. o.,
  • ZSE Energetické služby, s.r.o.,
  • VSE Solutions s.r.o.,
  • VSE Call centrum, s.r.o.
  • VSE Ekoenergia, s.r.o.

ZSE Group’s non-current assets are mainly represented by distribution network valued at historical costs (while in individual financial statements of ZSD they were revalued at fair value at unbundling in 2007) and non-current assets of the former VSEH group valued at fair value in 2023. Current assets mainly comprise trade receivables related to the supply and distribution of electric energy and natural gas as well as provision of complex energetic products and services for customers.

Equity is mainly represented by share capital, legal reserve fund and retained earnings. Non-current liabilities are mainly related to the Euro Bond emission in 2018 in nominal value of EUR 315 million and long-term loans. Current liabilities comprise mainly trade payables related to supply and distribution of electric energy and natural gas as well as provision of complex energetic products and services for customers.

Main source of ZSE Group’s revenue and EBITDA is the revenue from provision of distribution services in western and eastern Slovakia and revenue from supply of electric energy and natural gas. Majority of the revenue is regulated by Regulatory Office for Network Industries (RONI).

Key Figures of ZSE Group as of December 31

EUR Thousand20232022
Non-current assets 2,426,345 1,184,280
Current assets 775,080 490,717
Total assets 3,201,425 1,674,997
Equity 1,285,619 338,537
Non-current liabilities 1,105,845 516,414
Current liabilities 809,961 820,046
Total equity and liabilities 3,201,425 1,674,997
Revenue 2,321,933 1,681,534
EBIT 345,300 184,746
EBITDA 423,664 250,262
Income 2,372,964 1,711,837
Expenses (2,042,307) (1,544,634)
EBT form continuing activities 330,657 167,203
Net income from continuing operations  248,469 126,109
Net income from discontinuing operations 4,629 5,119
Net income total 253,098 131,228
Total comprehensive income 254,862 132,294
Investments 154,427 104,658
Average number of employees 2,316 2,151

Financing strategy

Financing strategy of ZSE Group is aligned with criteria set by S&P rating agency in order to preserve the a- stand-alone credit profile derived from funds from operations (FFO) to debt.

Financial Leverage Policy

  • The Company’s management and shareholders are committed to maintaining a strong investment grade credit rating and will manage the leverage in a manner consistent with this objective
  • In future ZSE intends to remain free cash flow positive

Dividend Policy

  • ZSE's shareholders will target a conservative dividend policy that supports the incremental growth for the Company while also retaining the target credit profile for a strong investment grade rating
  • The new shareholder agreement limits the amount of dividends paid through the maximum debt ratio (so-called leverage ratio)
  • ZSE has a dividend policy which enables positive change of free cash flow 
  • ZSE retains the flexibility in its dividend policy to offset any negative circumstances that might affect the cash flow generation capability or its credit profile

Investment Policy

  • The level of maintenance and expansionary investments required are expected to be funded from operating cash flows

Liquidity Policies

  • ZSE's management will ensure sufficient access to liquidity in the form of cash and revolving credit facility to maintain a liquidity buffer for operational purposes including debt service requirements
  • ZSE maintains a long-term committed credit facilities of €350 m to cover any working capital requirements and other operating requirements
  • Central cash management at the Group level