RENEWED FOR THE FUTURE.
Annual Report 2011
Sava Group
Annual Report 2011
Annual report for Sava d.d. and annual report for the Sava Group
Report by the Supervisory Board of Sava d.d.
Independent auditor’s report for Sava d.d. and independent auditor’s report for the Sava Group 2 ANNUAL REPORT 2011 INDEX usiness operations of Sava d.d. d.d. Sava of operations usiness 7. ourism division division by operations usiness 6. Group Sava the of trends operations and usiness recession the of impacts the circumstances, economic eneral 2014 until Sava 5. of strategy estructuring 2012 in 4. d.d. significant Sava of by calendar the nnouncements with structure ownership and 3. share Sava he 2011 for d.d. Group Sava Sava for the nd components its and report annual the 2. igning 1. ANALYSIS BUSINESS management inancial 10. management isk system governance orporate d.d. Sava of Board 9. Supervisory the by eport 8. 7. bodies governing and anagement Board Management the of President the by eport 6. 5. achievements and events significant of verview 4. Group Sava the of structure rganisational details ompany 3. indicators and data ignificant 2. 1. INTRODUCTION Index
6.5. 6.4. 6.3. 6.2. 5.2. 9.3. 9.2. 6.2. 4.2. 3.4. 3.3. 3.2. 7.2. R R R O 6.1. 5.1. 9.1. 6.1. 4.1. 3.1. 7.1. S F R C M O C S B B B G a T a
Business performance Rubber ManufacturingdivisionwiththeF Business performance Goal, organisationandmethodologyofriskmanagement Presentation oftheManagementBoard Significant eventsandachievementsintheperiodJanuary About theSavaGroup Assets andliabilities Investment Finance Other operations Real Estatedivision T Assets andliabilities Anticipated risksat More importantrisk Presentation ofthe Significant eventsa Divisions oftheSav Composition ofthe About Savad.d.
s in2011 Supervisory Board nd achievements in 2012 – after theaccountingperiod nd achievementsin2012–after
a Group the global level and their impact ontheoperationofSavaGroup the globallevelandtheirimpact Sava Group structure structure
oreign Trade Network
-December 2011
79 72 65 63 59 53 52 46 42 32 22 18 14 11 84 79 77 76 75 74 72 69 65 45 42 42 19 18 13 11 10 8 7 6 9 8 8 INDEX ANNUAL REPORT 2011 3
06 87 88 90 91 92 93 96 96 217 181 182 184 194 199 174 229 230 112 113 113 113 116 124 129 1 100 103 106 116 184 232
e Sava Group f materials and services ava d.d.
nd safety at work ality of swimming pool water
ial statements of the Sava Group with in accordance ies in 2011 y in the future Sava Group and data about the operations of subsidiaries and ial Reporting Standards as adopted by the EU ial Reporting Standards as adopted by the EU es to the financial statements of Sava d.d.
ection against other extraordinary events
al statements of Sava d.d. al statements of the Sava Group in accordance with gement for Sava d.d.
Financial risk mana Breakdown and not Other disclosures Statement of Management’s responsibilities for S Independent auditor’s report for Sava d.d. Notes to the financi Composition of the Notes to the financi Statement of Management`s responsibilities for th Independent auditor`s for the Sava Group Consolidated financ Fire safety and prot Guest safety and qu chain o Concern for the environment in the supply Environmental safet Concern for health a International Financ associated compan International Financ Financial statements of Sava d.d. with notes in accordance with Slovene Financial statements of Sava d.d. with notes in accordance with Slovene Accounting Standards Protecting the natural environment HR structure indicators and employee development HR structure indicators and employee
A I H D E E I P Q 2.1. 3.1. 1.1. M O F F 2.3. 2.4. 2.5. 2.6. 2.7. 2.2. 1.2. 1.3. 1.4. 1.5. 1.1. 3.2. 3.3. 3.4. 3.5. 1.2.
9. arketing and customer orientation 8. utlook for 2012 Contact persons in the Sava Group
ccounting Standards 2. inancial statements of Sava d.d. with notes in accordance with Slovene
FINANCIAL REPORT 1. inancial statements of the Savanternational Group with Financialnotes in accordanceReporting Standardswith as adopted by the EU
2. 3. evelopment of social community nvironmental protection and fire safety
SUSTAINABLE DEVELOPMENT 1. R Management 13. nformation support 11. 12. uality systems U projects 10. urchasing and suppliers
4 ANNUAL REPORT 2011 2011 REPORT ANNUAL INTRODUCTION
5 6 ANNUAL REPORT 2011 INTRODUCTION *Since 2007thecompanySavad.d.hasitscapitaldistributed toordinarypersonalno-parvalueshares. Financial ReportingStandards Sava GroupaccordingtoInternational Liquidity (currentassets/currentliabilities)-% Independence rate(equity/balancesheettotal)-% Net earnings/losspershare-€ Net profit/equity-% Pre-tax profit/equity-% Net profit/operatingrevenues-% INDICATORS Investment inproperty, plantandequipment Long-term liabilities Current liabilities Equity Current assets Long-term assets Balance sheettotal Status at31/12 EMPLOYEE NUMBER EBITDA Net profit Pre-tax profit Book value-€ Market valueat31/12-€ Paid dividendperashare-€ Exports Nominal value-€ SHARE Sales
1 1 2007 203.3 203.0 545.4 101.4 850.3 951.7 2,641 270.9 603.7 188.2 19.6 19.7 37.5 24.4 39.3 41.6 99.1 8.4 8.9 2.8 50 57 -* and indicators Significant data 2008 218.6 220.6 482.4 106.2 815.4 921.6 2,692 240.0 253.2 103.1 231.8 23.3 21.4 1.2 0.3 0.1 0.8 1.9 0.3 3.0 48 52 -* 2009 178.8 287.2 475.4 164.6 776.8 941.4 2,370 236.2 240.1 172.9 11.8 13.1 25.5 23.4 22.5 70.7 5.0 4.8 6.7 3.1 51 57 -* -105.1 2010 232.8 204.7 323.3 117.6 643.2 760.8 2,286 161.1 176.7 -50.0 -22.3 -23.4 -49.4 -99.9 20.9 89.5 83.7 6.4 3.2 42 57 -* -169.1 -157.2 2011 364.1 165.8 119.5 491.8 611.3 2,256 101.8 193.8 -78.7 -48.6 -52.3 -79.1 81.4 19.8 82.2 12.0 6.3 0.0 27 33 -*
2011/2010 € inmillions Index 157 218 224 160 178 102 161 157 122 110 64 98 51 35 76 88 99 95 51 13 58 0 - INTRODUCTION ANNUAL REPORT 2011 7 alant, MSc .sava.si 05284 58 ril 1996 0 – holding companies 51,567.51 shares ,987 ordinary personal no-par value Company Company details VA -mail: [email protected] -mail: [email protected] ranci Strajnar, MSc ranci Strajnar, ax: +386 4 206 64 46 ax: +386 4 206 64 el: +386 4 206 50 00 el: +386 4 206 50 Stanislav V Sava, družba za upravljanje in financiranje, d. d. in financiranje, d. za upravljanje Sava, družba Sava, d. d. Kranj, Slovenia Škofjeloška c. 6, 4000 T F E http://www 51113 SI 751 64.20 26 Ap €83,7 2,006 exchange listing Ljubljana Stock Exchange d.d., stock SA Matej Narat, MSc Andrej Andoljšek, Miha Resman and F Miran Kalčič
2
Until Until All Jo Managing portfolio investments. Implementing financial engineering tasks. Es Leasing out of real estate. Management consulting services. M F other ownership shares. Acquiring and selling securities and chairman, and Emil Vizovišek and Vinko Perčič as members. Vinko Perčič continued to carry out his office until his third five-year term of office expired as scheduled, i.e. 16 July 2011. office was carried out by Marko Pogačnik, MSc. involves acquisition and sale of property.
and company the of goals the achieving to contributes indirectly or directly that business commercial other andconcludingcommercialcontractsofalltypes. ining incommercialinterestassociations tablishing branchofficesandcompanies,takingoverofownershipstakesinSloveniaabroad. stake. companies,inwhichthecompanyhasamajorityorsignificantownership anaging andmanagingprofessionalservicesofSavad.d. orming
** board supervisory the of chairman deputy the 2011, June 8 i.e. office, member board supervisory the of termination the * 30 March 2011, the company was managed by the long-time management board consisting of Janez Bohorič as • • • • • • • • • • The more important business areas of Sava d.d.: The more important business areas Chairman of the Supervisory Board: Chairman of the Supervisory Board: Board: ** Deputy Chairman of the Supervisory * President of the Management Board: * President of the Management Board: * Members of the Management Board: Share listing: Share listing: Share designation: Date of entry in register of companies: Date of entry in register of companies: Share capital at 31/12/2011: No. of shares at 31/12/2011 VAT-ID No.: VAT-ID Activity code: Registration number: Head office: Head office: Company name: name: Company Abbreviated name:
Significant data data Significant and indicators and 8 ANNUAL REPORT 2011 INTRODUCTION the parentcompanyanditssubsidiariesmoreclearly: between shared responsibilities the and competences the defines structure organisational decentralised A supervised financial holding and reorganised internally. strategically a into remodelled d.d. Sava 2011, tember Sep- in adopted strategy restructuring the Tosupport tions. opera finance investment the out carries also it and Sava d.d. is the management centre of the Sava Group 3.2. The divisionsoftheSavaGroupare: the companiesemploymorethan2,200associates. total, In companies). subsidised 23 and company ent par (the companies 24 incorporates It Slovenia. in es The Sava Group is one of the larger business enterpris- 3.1. that aimsatimprovingtheefficiencyofoperations. strategy restructuring adopted the implementing in elements key the of one is which management, tralised of a part of investments. the beginning With of 2012, Sava restructured into a financial holding with a decen The Sava Group is in the process of restructuring, which includes both the internal consolidation and the sale • • • • • • • EXCELLENCE; wewishtobeexcellentineverythingdo. CREATIVITY; wecreateinnovativesolutions. KNOWLEDGE; RESPONSIBILITY; weresponsiblyexercisetheprinciplesofsustainabledevelopment INTEGRITY; weacthonestlyandethically, respectingagreements. Group: Sava the of values The
The managementofSavad.d.isresponsible Other Operations Investment Finance Real Estate Tourism Rubber Manufacturing The managementteamsin divisions and business. com paniesareresponsible fortheiroperative the Group. company andthestrategicsupervisionof for managingtheinvestmentportfolioof with theF About Savad.d. About theSava oreign Trade Network our successisbasedonknowledge.
Group 3
3
- - of theSavaGroup Organisational structure h picpl ol o Sv Gops iiin and divisions companies: Group’s Sava of goals principal The as aresult,theGroup’sremodelling. and, d.d. Sava of investments of part a divest to plans The restructuring strategy of the Sava Group until 2014 the beginningof2012. The new organisation of Sava d.d. was introduced with rules, andthelegislation. and policies internal the with companies Group Sava in operations the of compliance the assures it more, Further tasks. of implementation the over supervision simplified a and efficiency of level higher a assures It agement via13competencecentresofknowledge. management model, which replaced the former active network man- Group’s the in change the from sults re d.d. Sava of organisation internal remodelled The • • •
Ensure along-termcompetitivegrowth Achieve aleadingpositioninthedomestic, Achieve anabove-averageprofit(inthesector and developmentonasustainablebasis. and aboveall,theregionalworldmarkets. they operatein).
.
- - - INTRODUCTION ANNUAL REPORT 2011 9 - - - Legal Office Internal Audit
Franci Strajnar, MSc Strajnar, Franci Corporate Communications Matej Narat, MSc nications. In carrying out the mission it closely liaises with other professional services of Sava d.d.: Corpo rate Finance, Corporate Accounting, Plan & Analysis, Internal Audit, and Legal Office. The basic function of professional services is to pro- decision-making the for basis expert high-quality a vide process in Sava d.d., and to assure that the Manage ment Board is reported to on the implementation policies and of resolutions that had been adopted by the Management Board. The directors of professional ser vices report to a management board member who is competent for a particular area.
- - - - Development HR & Organisation Sava Group’s Directorate MANAGEMENT BOARD OF SAVA D.D. BOARDMANAGEMENT OF SAVA Corporate Controlling Miha Resman Andrej Andoljšek Finance Corporate Corporate Accounting, Plan & Analysis Composition of the Sava Group Composition of the Sava
Organisation Development, and Corporate - Commu mission of Sava d.d. is conducted by the Manage the by conducted is d.d. Sava of mission The ment Board, the Sava Group’s directorate and 7 pro fessional services with the associates. The Sava Group’s Directorate began to operate in the manag assure to is role Its 2011. October of beginning ing and strategic supervision over individual Group’s companies, exercise Sava Group’s policies, and man age and supervise other companies, in which d.d. holds capital investments. Sava The core team of the Directorate is composed of three professional services: Corporate Controlling, HR & Organisational structure and composition of the Sava Group at 27/03/2011 Organisational structure and composition of the Sava Group 3.3. New organisational structure of Sava d.d. structure New organisational Organisational structure structure Organisational Group Sava of the 10 ANNUAL REPORT 2011 INTRODUCTION hc ae e t Sv, uh s eiie military medicine, as equipment andenergymanagement. such Sava, to new are which sectors, the for products rubber new develops also It protection. environmental the and industry graphic the (motorcycles, cars), go-karts, vehicles, industrial industry bicycles, scooters, car the to industry struction con- the from reaching applications industrial for able suit tyres and products rubber industrial high-quality of range broad a markets and develops division The d.o.o., SavarusandSavaprod.o.o. Rol Sava companies the includes further division This and arepresentationofficeinRussia. Florida, and England Poland, Republic, Czech ny,the which includes five foreign trade companies in Germa d.o.o., Savatech is development the of mainstay The achieves leading positions in trademark numerous more market niches. Sava The on tradition. of decades based nine than is Manufacturing Rubber Sava’s Trade Network Rubber ManufacturingwiththeForeign one halfoftotalassetsSavad.d. approximately represents investments both of The value d.d. Vipa Abanka and d.d., Banka Gorenjska that investments Sava d.d. holds financial are those in the associated companies important most two The and the concern for the growth in Sava Group’s assets. divisions Sava’s financing support investments, vidual indi of value the optimise to are tasks main its d.d.; Sava company the within out carried is operation This Investment Finance 3.4.
Divisions oftheSavaGroup - - - vices fortherequirementsofSavaGroupcompanies. operation involves providing engineering and other ser this of part important An estate. real own its out leases and market the for builds and finances division The Nova Ad.o.o.,andSavaZagreb. IP d.o.o., Nova IP companies daughter its and d.o.o. IP Sava companies the includes It market. property Slovene the in position leading the has division This Real Estate campsites ofthehighestcategory. and courses golf as well as services, tourist other and health hotel, markets division The environment. wider a and closer a between link the emphasises and ity The development rests on the principles of sustainabil denci d.o.o.withTerme Banovci. Ra Zdravilišče Termeand d.o.o., d.o.o., Lendava Ptuj Terme Toplice, Moravske in 3000 Terme Bled, Hoteli Hotels & Resorts and comprises five destinations: Sava division operates under the common brand name Sava The Slovenia. in services tourism of provider biggest the is d.d. Turizem Sava company merged new The Tourism ing thecostforenergysupply. reduc and sources energy alternative the utilising for kets. The companies provide comprehensive solutions mar Yugoslav former the in operate Skopje, dooel., Ensa Sava and Mostar, d.o.o., Bramir Srbac, d.o.o., BH Ensa while Slovenia, in operates d.o.o. Energetika Črnomelj d.o.o. Sava Energetika is Kranj-based sector the management energy the of mainstay The ment companies. manage energy and Group, Sava the of needs the for services ICT provides which d.o.o., IT Sava Serbia; in estate real to relation in issues ownership manages training disabled workers; GIP Sava Kranj d.o.o., which and employing for enterprise social a d.o.o., Storitve in Medical Sava companies: the includes division The Other Operations ------INTRODUCTION ANNUAL REPORT 2011 11 - - - anniversary; this prominent jubilee is marked th In The The V The The Sava 80 short-term measures programme to improve the operations and presents it to the Supervisory Bo- supports and operationalises programme The ard. operations the stabilising at aim that measures the coordinating theand ma- strengthening cash flow, turity of financing sources and disinvesting certain investments. new motorcycle Racing Super Soft tyres which as- sure a better road grip in cold weather. - representati employee - member new a Rovanšek replace to d.d. Sava of Board Supervisory the in ve Miha Resman. Gro- Sava the of reports annual audited the adopts proposal the supports It 2010. for d.d. Sava and up given by the Management Board to the Sharehol of company leading the to Zagreb, d.o.o. Rol Sava Rubber Manufacturing, Savatech d.o.o. ders' Meeting to keep the accumulated profit of notice. €6.5 million undistributed until further or restaurant terrace and Cafe Park is completed; 4 new wooden huts, the so-called forest villas, are and quality the enhance to Bled campsite the in set variety of offer. with a number of events and thematic sales cam paigns. outdo the of renovation a d.d., Bled Hoteli Sava celebrates its Bled-based Grand Hotel Toplice Management Board of Sava d.d. adopts a elo programme of Savatech d.o.o develops the Workers' Council of Sava d.d. elects Gregor and with deals d.d. Sava of Board Supervisory d.d. transfers its 76% ownership holding in
• • May • • • April • •
Overview of significant of significant Overview achievements and events ------
4
ts and ts and n the period n the period -December 2011 -December achievements i achievements January Significant even Significant
On Sava Sava At Sava Sava The The €212,000, and in Sava TMC d.o.o. by €150,000; af €150,000; by d.o.o. TMC Sava in and €212,000, d.o.o. Ensa in capital share the increases, these ter amounts to €880,459, and in Sava TMC d.o.o. to €160,000. in the amount of €31.2 million and Sava IP d.o.o. in the amount of €7.1 million approved in 2010 are of companies. entered in the register to develop a new segment of motorcycle tyres for the so-called motoskiring, the ever more popular winter racing sport. ard of Sava d.d. is succeeded by the new mana president, as MSc, Narat, Matej with board gement and Andrej Andoljšek, Miha Resman and Franci MSc, as members. Strajnar, clude an agreement about selling a 50% business stake of Sava d.d. in the mixed ownership com- Sava-Schä- covers roll of manufacture the for pany fer d.o.o., Kranj. kur d.d. vote for an increase in capital of the com which pany, is one of the critical conditions for an effective compulsory settlement in this company. request the support unanimously shareholders The by Sava d.d. for a special audit of disputable - tran sactions made by the management of Merkur d.d. between 2007 and 2010. ska Banka d.d. totalling €4.4 million. tium members in the sale of a 50.1% international the ownership choose d.d., Vipa Abanka in stake advisor financial joint their as ING bank investment in the selling procedure. bo management long-time the 2011, March 31 d.d. receives interim dividends from Gorenj d.d. increases capital in ENSA d.o.o. by the general meeting, the shareholders of Mer d.d. and SchäferRolls GmbH & Co KG con d.d. and nine other companies, the consor Velo programme of Savatech d.o.o., begins increases in capital of Savatech d.o.o. Kranj
• • March • • • • February • January •
4.1. 12 ANNUAL REPORT 2011 INTRODUCTION
• • • • July • • • • • • • June
major investment in 2011 in the Tourismdivi the in 2011 in investment major Velo Programme of Savatech d. o. o. launches 1, Investicijska Družba d. d. acquires 356 sha compul the confirm d.d. Merkur of creditors ava IP d. o. o. sells the company Sava IMG d. o. o., program loyalty the introduce companies ourism Sa of Products Moulded – Programme GTI from million €6.2 of dividends receives d. d. the elected are Skok Aleš and MSc, Ličen, 17 the 2011. statementsfor of thefinancial auditor zija d.o.o.as Revi- Deloitte appoint and profit, accumulated the of non-distribution about proposal a for adopt 2010, Board Supervisory and Board Management the to liability from discharge grant shareholders adrenaline fansandfamilies. all welcome to Ptuj resort spa in opens Slovenia in toboggan Tajfun,largest completed: the is sion rights increasesfrom4.99%to5.01%. res of Sava d. d., after which the share of its voting ases to8.2%. tered the present 19.17% stake of Sava d.d. decre en- is capital in increase the After bankrupt. going from it protect to company the for settlement sory which brings numerousbenefitstoguests. Ambassador, Resorts & Hotels Sava me all threepresses. tal injection press, and installs a bridge elevator for setting up a new - the third in succession - horizon in investment the completes Ptuj, in d.o.o., vatech a longerservicelife. and conditions driving all in grip superb a assures compound new-developed The category. country the new Teracross SX11 tyres suitable for the cross Poreč, in which it held a 50% ownership stake. tals €9.0million. d.o.o., Zagreb. The value of the capital increase to- Nova Sava of capital increases d. d. Sava capital, the dividendsumtotals€10.6million. March, in received dividends interim with together d.d.; Banka Gorenjska company associated the on 9June2011. beginning office of term 4-year a for presentatives new Supervisory Board members – shareholder re- S T The Converting Sava Robert At The The NFD The th Shareholders’ Meeting of Sava d.d., the d.d., Sava of Meeting Shareholders’ h apoe la it te company the into loan approved the ------• September • • • August • • October • • •
Supervisory Board of Sava d.d. unanimously d.d. Sava of Board Supervisory the d.o.o., Savatech of programme Profiles the Aban in stake ownership 23.83% a of holder a ownership of Sava IPN d. o. o., the subsidia the o., o. d. IPN Sava of ownership holding equity the of sale the for consortium o., o. d. BH Ensa in capital increases d. d. Tothe merging for preparations the of light the ownership ofSavad.d. direct a under transferred is o., o. d. IP Sava of ry as members. Simonič Borut and Balažic Renata and president, as Prebil Andrej of consists which 2011, October 1 on office their up take to company the of board management new the appoints d. d. Bled Hoteli Sava of Board Supervisory the companies, urism this purpose. for earmarked was million €1.5 of excess in sum a machinery and equipment. In the recent two years, as well as spaces adjoining and working of ments of dividends receives €308,851.4. d. d. Sava d.d., Vipa ka n cnoiae h bss o te rwh n the in Sava sharevalue. growth the for basis the consolidate and indebtedness decrease shareholders, its for pany thecom of value the enhance significantly to is turing and consolidation of Sava until 2014. Its goal supports the strategy of business-financial restruc- and increaseproductivityby15%onaverage. profiles larger of manufacture the enable to ded exten was Durferrit 120/1 LCM line vulcanisation this bankavailable. of procedure selling the in holding equity - 75.72% - qualified a has ING now insurance d.d.; Triglav the company by joined is d. d. Vipa Abanka in company. manufacturing rubber this of history entire the in result sales monthly best the is which million, €11 share capitaltotals€3,758,000. Srbac, in the amount of €1,921,000, after which the The In Savatech As The The Savatech Sava In d. o. o. continues to invest in improve in invest to continues o. o. d. . . . ae rcr sls exceeding sales record makes o. o. d. ------
INTRODUCTION ANNUAL REPORT 2011 13 - - - - -
ts and ts and n 2012 - n 2012 nting period nting period Significant even Significant i achievements after the accou
Sava Based The T In in Bled is being replaced; this is the first phase of renovation that will include the entire hotel facade building. to assure an energy-efficient d.d. buys off a 100% ownership stake in d.o.o. Bramir re and the estimate of the macro-economic envi ronment for 2012, the consortium members for a joint sale of the ownership stake in Abanka Vipa d.d. adopt a resolution to stop the procedure and suspend the consortium. ints the new Supervisory Board members four-year term for of office: Matej a Narat, MSc, Andrej Marinič. Milan and MSc, Strajnar, Franci Andoljšek, tanus a d.o.o., sale Maribor, contract for a 86.57% ownership stake Maribor of d.d. Terme Thus Sava d.d. sells its 14.56% ownership stake in this com pany.
d.d. and NFD Holding d.d. signed with Pla on the results report on the sale procedu d. d. appo general assembly of Sava Turizem o develop the energy management sector, Sava d.d., Sava the Turizem roofing of the hotelPark
March • 5.2. January • • • February • - - - Sava On Sava Sava The In after the reorganisation of Sava d.d. provides ICT services to the Group. Turizem d. d. was entered in the register of compa of register the in entered was d. d. Turizem other real property and equipment in total value of €9.8 million to its subsidiary Savatech d. o. o. Until that time, a part of the property was leased by the company. nies. Sava Turizem d. d. is under 99.05% owner ship of the parent company Sava d. d. the proposal about merging the companies Terme 3000 d. o. o., Zdravilišče Radenci, d. o. o., Terme Ptuj d. o. o. and Lendava Terme d. o. o. to Sava Hoteli Bled d. d. The general assembly adopts a resolution about renaming the company to Sava the increasing about resolution a and d.d., Turizem share capital to €39,684,899.19. conducted conducted by Milan Marinič is established. Its role is to direct the development of processes in key strategic functions and to assure an optimum effi- ciency in managing and functioning of supervisory level. mechanisms at Group’s netol d. d. by 8.58% (from 0.45% to 9.03%), and in Maksima Invest d.d. by 0.43% (from 21.34% to 21.77%). IPN d.o.o. renames to Sava IT d.o.o., which Sava company merged the 2011, December 30 d. d. sells the main office building, certain d. d. increases its equity shareholding in Fi shareholders of Sava Hoteli Bled d. d. confirm Sava d.d., a directorate for Group’s managing
• • • • December November • • 14 ANNUAL REPORT 2011 INTRODUCTION of substantialfinancialliabilities. development strategy for Sava was adopted and new negotiations with banks the began on coordinating September the maturity in team, management long-time former the succeeded the members March, of Board end Management the At ways. many in turbulent and Sava for year demanding extremely an was 2011 Dear shareholdersandpartnersofSava, most twice as much as in the previous year, and it was al or million, €8.3 reach to up Totalwent profit pre-tax 6%. by plan business the surpassing thereby 10%, by soared products technical rubber quality of sale The revenues. sales total Group’s of share, 62% i.e. est, larg the made latter The general. in Manufacturing, Rubber and d.o.o. Savatech the of 10-year,history entire, in one successful most the was 2011, year The surpassed. even was revenues Group’s of level the crisis the fore ness plan was fulfilled and with regard to the period be 10% improvement on the previous year, while the busi a was which million, €193.8 of value the reached nies compa- Group Sava of revenues Sales future. the for Tourismand energy particular,and in optimism inspire Manufacturing Rubber divisions, Sava’s of results The better performanceofTourism Impressive results of Rubber Manufacturing, “The adopted restructuring strategy of Sava will as sory BoardofSavad.d. Supervi the by motioned unanimously was strategy the 2014; of end the until period medium-term coming forth the in Group Sava the of consolidation and egy strat restructuring business-financial a into developed and upgraded been has programme measures The and divestcertaininvestments. sources, finance for deadlines the harmonise further flow,cash the strengthen Group, Sava the of business current improve areas: key four on focused have we subsidiaries, in teams management new the by sisted short-terma devised as Being programme. measures nomic activities in certain real sector segments, we first To deal with the financial crisis and a slowdown in eco- n rifre h bss o icesn te Sava share value.” the increasing for basis the reinforce and indebtedness decrease will it shareholders; for ny sure a significant growth in the value of the compa 5 5 ------of the Management Board Report by the President en xldd te usdais f h Sa the of subsidiaries the excluded, been had Tourism, in provisions and Estate Real in ments impair – events extraordinary single of effects the If lower thaninthepreviousyear. lower than in 2010, the generated loss being otherwise 7% were management, energy the to referred share main whose Operations, Other of revenues Sales tia. Croa- and Slovenia in inventories of impairment the to due greatly was million €10.2 of loss year.A previous the to regard with lower was Estate Real in revenues of amount the sources, finance of availability lower a and sector this in demand in decline general a to ing Ow total. in 5% only revenues, sales total in portion minor a generated Operations Other and Estate Real competitiveness intheupcomingperiod. price improve will what down go will costs labour tion reorganisa the after reorganisation; the in pays ance sever and days-off, and hours work unexploited for provisions of formation the to due mainly million €3.6 tive business result for the division shifted into a loss of posi expected The stays. overnight of number higher a through for compensated be only could that prices in drop a caused market Slovene the in competition price fierce the whereas price, increased average the did so and guests foreign by stays overnight of ber grew by 7% if compared to the previous year. The num revenues sales and met was plan sales the prices, on pressure competitors’ and markets traditional the in ing power and, as a consequence, a declined demand purchas- lower a of spite In Group. Sava the of enues rev sales in share third one had Tourismcompanies management, ingeneral. cost rational a and materials, raw certain of availability limited a rises, price by challenged management risk efficient restructuring, market and niches market new the to orientation achievements, R&D innovative mix, sales varied a from results division the of performance impressive the crisis, the after markets certain in recov ery fast a with Along plan. above quarter a also a Group va ------
INTRODUCTION ANNUAL REPORT 2011 15 - - Vipa d.d., NFD Holding d.d. and Maksima Invest d.d.; €118.9 million or three quarters of total impairments made by Sava d.d. were due to the aforementioned companies. In addition to the impairments of financial in- also was result financial generated the investments, 16% a from originating expenses financing by fluenced increase in interest rates. With regard to the previous year and also considering the plan, financial revenues totalling €17.2 million halved, since in the given eco nomic circumstamces the planned disposal of a 23.8% 23.8% a of disposal planned the circumstamces nomic equity stake in Abanka Vipa d.d. was not doable. The value of received dividends totalled €11.3 million and associated the by paid dividends the to referred mainly companies Gorenjska Banka d.d. and Abanka Vipa d.d. was 2011 in markets capital the in situation general The reflected in the Sava share price, which significantly decreased and reached about €12 per a share at the The book end value of of the the year. Sava share was almost half the value of the previous year and stood at €82.2 at the end of the year, thereby considerably surpassing the prices in the stock exchange market. loss 2011 the of portion prevailing a covered d.d. Sava through the retained profit from the and other previous capital components that years could be used for this purpose; a portion of loss totalling €9.3 million re mained uncovered. - - - - -
Matej Narat, MSc, President of the Management Board Matej Narat, MSc, President of the Sava d.d., and to a lesser extent also due to im- generated Group Sava the inventories, of pairment a negative net operating result of €157.2 million, while the value of impairments at Group’s level to- talled €160.3 million.” nection with the associated companies, mostly Abanka mostly companies, associated the with nection The operating result of the parent Group company was strongly of affected the by impairments in con “Due to impairments of financial investments of terioration of the economic environment significantly af significantly environment economic the of terioration fur requested and sectors, banking and real the fected ther impairments of financial investments of Sava d.d. in the amount of €158.1 million. In 2011, the company made a net loss of €156.1 million, the balance sheet of share The 63%. by capital and 27% by reduced total capital in liabilities reduced to 21%. Further Further plummeting of stock exchange prices, which strongly affected the Sava share price too, and the de Operating result again affected by the Operating result again affected impairments of financial investments would have generated an operating profit of €11.7 mil We We are pleased to look ahead at 2012 as we plan to business. further improve the results of the current lion, meaning that the profit generated in the previous year would have been doubled.
of the Management Board Management the of Report by the President President the by Report 16 ANNUAL REPORT 2011 INTRODUCTION in 2011. liabilities financial its repaid regularly d.d. Sava verse, ad were circumstances economic the though Even million. €371.3 reach to million €10.7 by Group Sava by €5.0 million to reach €309.3 million, and those of the In 2011, total financial liabilities of Sava d.d. decreased and structure suitable a achieve to is goal “Our all Savastakeholders. for value the enhancing thereby transactions, of value the maximising for conditions the assure will liabilities of repayment regular and This stable. is situation ity liquid the when and pressures time great any without area investments financial the with connection in ties ment, which will make sure that we carry out the activi agree long-term a through complemented be 2012 in will principals from originating liabilities for agreement standstill the restructuring, business-financial of plan produced the and strategy presented the with line In and weadditionallyinsuredSava’sloanliabilitiestoo. interests, the settle regularly to ourselves committed we which at liabilities, loan Group’s all for principal of dle of the year, we managed to agree a postponement mid the In banks. lending the with relations of ulation management, we have been concentrating on the reg risk financial and efficiency cost improved solidation, con business internal for measures of plementation im- efficient the with Along year. business past the in tasks priority the were position financial the solidating con at aim that measures of implementation the and operations smooth for needed maintenance Liquidity and thustheentireSavaGroup. impact on the financial position of the parent company significant a have and ability maintenance liquidity the aggravate substantially funds obtaining for conditions stricter and availability lower generally a and liabilities, financial Sava’s of volume high a dividends, received of amount the in decrease a sev years, during consecutive eral securities in drops price of effects The with thelendingbanksatforefront relations the regulating and liquidity Weput plementation ofdivestingprogramme.” im successful a with assured be only can basis long-term a on Sava of soundness financial and liquidity maintaining for basis key The level. able sustain- long-term a reach to as so indebtedness ger period of time and a decrease in the volume of lon a over Group Sava the of liabilities of maturity ------generating afreecashflowinSavaGroupcompanies. for introduced are activities additional and out, carried are d.d. Sava of assets financial of disposals further deleveraging in 2012, which will be made possible after plan we plan, structuring re financial the and strategy the with accordance In petitive powerofthisdivision. com global the reinforce and en synergies, sales hance efficiency, cost improve feasible, consolidation d.d. Already in this year, the merger will make business TurizemSava company uniform one in companies ism successfully Tourmerging project: complex second the completed we year, the of end the before already and appointed Tourismwas of management new The Sava ITd.o.o. company new a to transferred were services ICT the while services, professional seven by replaced were company parent the in centres competence 13 vious sonnel. The employee number almost halved. The pre per of terms in consolidated was and structure tional organisa- new a with 2012 year the began d.d. Sava management. sational structure as well as in a decentralised Group’s organi- efficient and cost-rational more significantly a out at the end of the year as scheduled, has resulted in carried was which model, management changed the and d.d. Sava for project reorganisation strategic The sults inthisrelativelyshortperioduntiltoday. re- showed already which Group, the over supervision strategic and governance corporate of efficiency and quality the improve to is goal its Group; Sava the ing manag for Directorate the established October,we In business areastoo. other in intensity with implemented were policies gic strate adopted the liabilities, financial for deadlines of harmonisation further about agreement an making for activities the and maintenance liquidity to addition In by way of thoroughly analysing the strategic portfolio strategic the analysing thoroughly of way by began portfolio investment the restructuring and ing divest with associated activities the 2011, in Already lerated investmentsrestructuring acce- the and disinvestments more 2012: In strategy -all2011commitmentsmet Implementation oftherestructuring a more substantial volume of volume substantial more a
------INTRODUCTION ANNUAL REPORT 2011 17 ------
requisite for the principal goal that we wish and have to attain: growth and development of Sava First, time. of period long a over operations its and to grow anew.” Sava has to restructure to be able Matej Narat, MSc President of the Management Board of Sava d.d.
“All these changes represent only a necessary pre- necessary a only represent changes these “All The defined restructuring strategy is extremely chal lenging but implementable. Sava has a strong sonnel potential with per sufficient knowledge, innovation, commitment and flexibility to adapt to the changes, which can all be demonstrated in a significantly higher we productivity need and time performance. to Yet, be able to effectively perform the devised consolidation we expect cooperation and divestments, which is why, Sava and banks lending of part the on support full and the reach will we that believe firmly we as shareholders, set goals. This last year was really a tough one but regardless of the generated business result, I am proud of what the of effects the though even accomplished, been has enormous efforts invested by the entire management team and all employees at Sava will show only over time. Dear shareholders and partners, I would like press to my sincere ex thanks for your trust and your sup- year eventful the in need definitely will Sava which port, of 2012. However, the fact cannot be denied that the restructur However, ing process can be painful, too. We already had to give give to had already We too. painful, be can process ing up many a thing in numerous fields of our fu the in made business be to have will sacrifices additional and ture. It is particularly difficult to make a decision when it involves lay-offs or disposals of Group’s business. the However, Management Board assures that the fu and too care due with out carried be will measures ture affected. persons the of involvement close a to subject - - development to all divisions, to some of them by others to in and Group, Sava restructured new, the way of selecting most suitable strategic partners outside of the Group.” and a faster development sity in the following two years. We design a new, the renewed Sava design a new, We the renewed, more sound Our goal is to design a new, and successful Sava. In 2011, we already began to build up the conditions for the future growth, this pro- inten with continue will and progress in still now is cess We We continually pursue the economic environment and adapt our plans to the emerging situation. Based on we made a decision the report by the financial advisor, in January to stop the procedure for a joint sale of a qualified stake of Abanka Vipa d.d. We again support a tie-up between this bank and Gorenjska Banka d.d. as we find it as one of the most favourable scenarios for restructuring the bank portfolio of investments and enhancing the assets of Sava d.d. Presently, Presently, numerous investments are being divested, the projects being in various phases of implementa- tion. One of the largest projects is the sale of Sava IP d.o.o., which incorporates a major part of Sava’s real property business. The sale of this investment will pay for a part of financial liabilities, thereby decreasing the indebtedness level, whereas the strategic partner will addition- for specialists and company quality a acquire al expansion of its real estate business. “Restructuring will offer a strategic option for the of investments of Sava d.d., and the procedures were introduced for testing the market for any possible dis posals. The entire investment portfolio of Sava d.d. was was d.d. Sava of portfolio investment entire The posals. subject to the examination process for strategic pos- sibilities. 18 ANNUAL REPORT 2011 INTRODUCTION • Other currentfunctions: • • • Membership ofSupervisoryBoards: • • Franci Strajnar, MSc,Member oftheManagementBoard • Other currentfunctions: • Membership ofSupervisoryBoards: • • MIHA RESMAN,MemberoftheManagementBoard • • Other currentfunctions: • Membership ofSupervisoryBoards: • • MemberoftheManagementBoard ANDREJ ANDOLJŠEK, • Membership ofSupervisoryBoards: • • MATEJ NARAT, MSc,PresidentoftheManagementBoard OFSAVAMANAGEMENT BOARD D.D.: of officeexpireson31March2016. term five-year their 2011; March 31 on office their gan be members Board Management The MSc. Strajnar, Franci and Resman Miha Andoljšek, Andrej members and MSc, Narat, Matej president of consisting Board four-membera by managed is d.d. Sava Management 6.1.
ember of the Supervisory Board of Sava Turizemember d.d., of theBled. Supervisory Board of Abanka Vipa d.d., Ljubljana. ember of the Supervisory Board of Istrabenz d.d., Koper. sponsible forcorporatefinanceandaccounting,riskmanagement. Sc (Economics),bornin 1975. ember oftheadministrative boardofHeliosBasketballClub,Domžale. ember of theInnovation-DevelopmentInstituteatLjubljanaUniversity. sponsible forcorporatecontrollingoftheGroupandoperationsdevelopment. bornin1970. Sc (Economics),MBA, sponsible formanagingandsupervisionoftheGroup,organisation,HRcorporatecommunications. M M Deputy ChairmanoftheSupervisoryBoardSavaT Re B Chairman oftheSupervisoryBoardSavaT Re MSc (Economics),bornin1967. Arbitrator atP M M M Responsible forlaw LLM, bornin1972. Member oftheSlovenianDirectors’Association. Member oftheSupervisoryBoardGorenjskaBanka d.d.,Kranj. Re B
Management B Presentation of ermanent Arbitrationofthe Ljubljana StockExchanged.d.,Ljubljana. , operationscomplianceandinternalaudit. the oard
6 urizem d.d.,Bled. 6 - urizem d.d.,Bled. Management and governing bodies as scheduled,i.e.16July2011. expired office of term five-year third his until office his Perčič as Vinko members. Vinko Perčič and continued to carry out Vizovišek Emil and chairman, as Bohorič Janez of consisting board management long-time the by managed was company the 2011, March 30 Until
INTRODUCTION ANNUAL REPORT 2011 19 - - - Until the termination of office, which was on 8 2011, the Supervisory June Board members were also Mar Pogačnik, Marko Toplak. Tomaž and MSc, Pogačnik, ko Supervi- the of chairman deputy of office the held MSc, sory Board and audit commission chairman, whereas member. was personnel commission Toplak Tomaž Miha Resman was Supervisory Board member til 31 un March 2011, and after he took up the Manage Gregor by replaced was he office, member Board ment Rovanšek. - - Shareholders’ th
the Presentation of Supervisory Board
Meeting, Robert Ličen, MSc, and Aleš Skok, began on four-year The 2015. June 9 on expires and 2011 June 9 term of the remaining Supervisory Board members ex pires on 28 June 2012. The term of office of the new Supervisory Board mem- bers who were appointed at the 18 resentatives; Miran Kalčič is chairman and Stanislav Valant, MSc, is deputy chairman of the Supervisory Board. The Supervisory Board of Sava d.d. consists shareholder representatives of and three employee rep six 6.2. Members of the Management Board of Sava d.d. (left to right): Members of the Management Board Andoljšek, Andrej and Member, MSc, Strajnar, Franci President, MSc, Narat, Matej Member, Resman, Miha Member.
governing bodies governing Management and and Management 20 ANNUAL REPORT 2011 INTRODUCTION SUPERVISORY BOARD OF SAVA D.D. – MEMBERS SHAREHOLDER REPRESENTATIVES • • • member ofthepersonnelcommission MIRAN KALČIČ, chairmanoftheSupervisoryBoard, • • member oftheauditcommission member–shareholder representative, JOŽE OBERSNEL, • • Principal currentfunctionsandmembership: • • chairman oftheauditcommission JANKO KASTELIC, member–shareholderrepresentative, • • • • • Principal currentfunctionsandmembership: • • chairman ofthepersonnelcommission STANISLAV VALANT, MSc,deputychairmanoftheSupervisory Board, • • • • Principal currentfunctionsandmembership: • • • • Principal currentfunctionsandmembership:
of the administrative board of the insurance company Triglav Osigura ember of the administrative board of Zavarovalnica Osiguranje a.d.o., Sc (Economics),bornin1947. airman oftheSupervisoryBoardNFDHoldingd.d.,Ljubljana. Sc (Economics),bornin1950. airman oftheadministrativeboardHoteliBernardind.d.,Portorož. airman ofthemanagementboard of NFDHolding,d.d.,Ljubljana. ember oftheadministrativeboardSlovenianDirectors’Association. ember of the Committee for Closed Mutual Pensionember Fundsof the forexpert Publiccommittee Employees.of the Slovene airman oftheexpert committee oftheEmploymentServiceSlovenia. Association of Disabled Workers. lder ofacertificatebytheSlovenian Directors’Association.
Belgrade, Serbia. Pojištòvna a.s.,Brno,CzechRepublic. d.d., Ljubljana. Work Safetyd.d.,Ljubljana. nje d.d.,Zagreb,Croatia. Ho Executive LLB, bornin1948. Member Member oftheSupervisoryBoardinsurancecompany T M Member oftheSupervisoryBoardinsurancecompany T Counsel tothemanagementboardofZavarovalnicaT B Member oftheSlovenianDirectors’Association. Ch Director ofFinetold.d.,Celje. B Member oftheSlovenianDirectors’Association. Chairman oftheSlovenianInvestmentF Honorary Ch Chairman oftheSupervisoryBoardEtold.d.,Celje. Ch Master inEconomics,born1950. M M M Ch nje, a.d.o., Banja Luka, The Republic of Serbia. chairman of the Supervisory Board of the Ljubljana Stock Exchange Stock Ljubljana the of Board Supervisory the of chairman director and member of the administrative board of the Institute for Institute the of board administrative the of member and director und AssociationLjubljana. riglav d.d.,Ljubljana.
riglav
riglav Osigura
- - INTRODUCTION ANNUAL REPORT 2011 21
oung Managers’ .o., Žilina, Slovakia. eepers Association.
rade BH d.o.o., Čapljina, Bosnia and rade BH d.o.o., Čapljina, Bosnia and urizem d.d. ederation of Chemical, Energy, ederation of Chemical, Energy, ension Fund. eko d.d., Tržič. urizem d.d., Bled. Member of the audit commission of Sava T Ce B As Member of the executive board of Slovene Golf Green-K B Head of the Golf Course Bled, Sava T Mechanical technician, born in 1946. Mechanical technician, born in 1946. Mine, Chemical and Energy Member of the board of the European F Member of the board of the International Chairman of the Supervisory Board of HGtrade d.o.o., Ljubljana. Chairman of the Supervisory Board of Helios Slovakia s.r Chairman of the Supervisory Board of HG T Chairman of the Supervisory Board of M P Member of the board of Capital Mutual B Board of Helios d.d. Member of the Management Ch Chairman of the Supervisory Board of P Chairman of the Supervisory – Y board of Managers’ Association Member of the administrative Directors’ Association. Member of Slovenian MSc (Business administration and Organisation), born in 1967. and Organisation), administration MSc (Business Profit Plus d.o.o. Owner of at Sava d.d., Kranj. Herzegovina. Section. Workers’ Federation (EMCEF). Federation Workers’ Mine and General Workers' Unions (ICEM). Mine and General Workers' theSlovenianInstituteofAuditors. rtified internalauditorunder Sc (Economics),bornin1981. sistant DirectortotheprofessionalserviceofCorporateControlling
Sc (Agronomy),bornin1977.
of theSupervisoryBoardChromosBojeiLakovid.d.,Zagreb,Croatia. ember bornin1967. Sc (ChemicalTechnology), Belles d.o.o.,Ljubljana. airman oftheSupervisoryBoardBelinka
• • • • GREGOR ROVANŠEK, member - employee representative, GREGOR ROVANŠEK, • Principal current functions and membership: • BOŠTJAN LUZNAR, member - employee representative BOŠTJAN LUZNAR, • member of the audit commission • Principal current functions and membership: Principal current functions and membership: • • SUPERVISORY BOARD OF SAVA D.D. – MEMBERS EMPLOYEE REPRESENTATIVES – MEMBERS EMPLOYEE D.D. SUPERVISORY BOARD SAVA OF representative, employee JANEZ JUSTIN, member, member of the personnel commission • • • • • • • • Principal current functions and membership: ALEŠ SKOK, member – shareholder representative member ALEŠ SKOK, • • • and membership: Principal current functions • • ROBERT LIČEN, MSc, member – shareholder representative, representative, – shareholder LIČEN, MSc, member ROBERT Principal current functions and membership: member of the audit commission member SUPERVISORY BOARD OF SAVA D.D. – MEMBERS SHAREHOLDER REPRESENTATIVES SHAREHOLDER MEMBERS – D.D. SAVA OF BOARD SUPERVISORY 22 ANNUAL REPORT 2011 INTRODUCTION the audited2011consolidatedannualreportofSavaGroup on theresultsofexaminingaudited2011annualreportcompanySavad.d., the compiled annual report together with the auditor’s the with together report annual compiled the present Act must Board Companies Management the the that of specifies 272 Article of 3 Paragraph report on6April2012. auditor’s an produced Ljubljana, d.o.o., revizija loitte De- auditor The company. stock joint the of Meeting Shareholders’ 17th the at selected been had that ditor au an to auditing for submitted was report annual The results ofthecompanyanditsfinancialposition. business and development the of view fair a gives and risks and uncertainties that the company is material exposed to the on analysis in-depth an contains report business The company. the of offices representation the about data and development and research of field the in Group Sava the of activities and company the of the business year, description of the anticipated growth nificant business events that took place after the end of sig the all contains report business The 69. Article 1, Paragraph of 22 – 1 Items in Act-1, Companies the by nancial statements contain all the information specified fi the to explanations The shares. own its for serves re formed correctly has company The reports. annual the in contained are reports and statements individual the produce to legislation by prescribed are that ents constitu essential the All report. annual consolidated the and report business annual the both the to common that is report stands it whereby too, contents prescribed the all of consists report annual solidated of changes in equity, and the business report. The con statement statement, flow cash statements, the all to ment of comprehensive income, enclosures with notes state statement, income sheet, balance the includes that report financial the of consists report annual The nies Act-1. Compa the by prescribed as components obligatory the all contain and deadline legal the within produced were reports annual 2011 the that determined has It Group. Sava the of report annual consolidated the 2011 and Board Management the from report annual 2011 the concerning aspects formal the reviewed has The Supervisory Board of the joint stock company Sava and the consolidated annual report Components of the annual report 7 7 ------
Report bythe Supervisory Board report tothecompetentbody. audited annual report and audited consolidated annual the submitting for term 8-day an defines which Act-1 Companies the of 57 Article of 5 Paragraph of sions provi- the were so and observed was provision legal aforementioned the that determine Wetherefore 2012. April 12 on this did d.d. The Sava delay.of Board Management without Board Supervisory the to report Board members. and AlešSkokwereappointed asthenewSupervisory MSc, Ličen, Robert them of instead and recalled, were Tomaž Toplak, and MSc, Pogačnik, Board Marko Supervisory members, the June 8 on held Meeting ers’ Sharehold- the in while 2011, March 30 on Rovanšek Gregor by replaced was Council Workers’ the by ed elect member Board Supervisory a as Resman Miha office of term Valant,this Stanislav In and MSc. Skok, MSc, Ličen, Robert Boštjan Luznar, Kastelic, Jože Obersnel, Gregor Rovanšek, Aleš Janko Justin, Janez The Kalčič, Miran Council. are: Board Supervisory the Workers’ of members the by proposed members three and Meeting, Shareholders’ the by elected were who members six of consists Board Supervisory The not adoptanysuchresolutionin2011. did Board Supervisory the but member, individual an from right a such revoke to right the has Board visory Super the provision legal the with accordance In port. re- annual the producing for bases the all examine to which enables every member of the Supervisory Board manners, various in Act Companies the of 282 Article 1, Paragraph under right their exercised Board visory Super the of members individual meetings these At vember and13December. May,31 April, July,5 September,22 August, 30 No 27 22 March, February,30 16 on place took 2011 in ings meet Board Supervisory The 2011. in even meetings nine had Board Supervisory the connection, this in aftermath the and crisis economic the of continuation the to Due meetings. Board Supervisory at mainly tion The Supervisory Board performed its supervisory func General the managementofcompany Method andscopeofexamining
------INTRODUCTION ANNUAL REPORT 2011 23 ------meeting on meeting rd meeting on 5 July 2011), who are all are who 2011), July 5 on meeting th the Supervisory Board members too. The commission had seven meetings. The meetings were convened so in a quarter. that the commission met at least once At its meetings, the commission dealt with the annual financial the auditing for candidate a appointed report, statements and carefully studied the work by the in ternal and external audit and risk management in the Sava Group. it realised all Furthermore, other tasks set out in Article liquidity, with dealt particularly It Act-1. Companies 280 plat the and transactions, loan and estate real options, form for the restructuring strategy of the Sava Group and Sava d.d. com the by questions set was who auditor, external An mission members, collaborated in the audit commis- present personally auditor external The meeting. sion ed the course of the audit. The external auditor participated in report annual the the which at 2011, April in meeting Board Supervisory was adopted, and in the Shareholders’ Meeting of the joint stock company in last June. 30 March 2011, until 31 March Miha Resman was the member), Jože Obersnel and Robert Ličen, MSc (ap- 26 the at pointed lant MSc, as a commission chairman, and Janez Justin Justin Janez and chairman, commission a as MSc, lant and Miran Kalčič as commission members. The com mission met in seven regular meetings. It dealt with the candidates to be appointed in the Management Board, the elements of contracts made with Manage- ment Board members, elements of terminating man board management former the with contracts agement members, report on contractual relationships with the management board in their term of office from 2006 July until July 2011, remunerations for the Supervi sory Board members and commission members, and also prepared a proposal for appointing deputy chair au the of chairman and Board Supervisory the of man dit commission. The audit commission, which in accordance with Ar ticle 279 of the Companies Act-1 is mandatory in the public listed companies, consists of: chairman Janko 2011, July 5 on meeting 26th the at (appointed Kastelic until 8 June the chairman was Marko Pogačnik, MSc), and the commission members Kosta Bizjak (external respective- audit, and accounting for certified member, 23 the at (appointed Rovanšek Gregor ly),
------All members being elected by the Shareholders’ Meet Considering the practice from the previous term of of The Supervisory Board has set the rules as regards safeguarding business secrets and dealing with any conflicts of interest. Every Supervisory Board member signed a special statement as regards the observance internal and secrets, business safeguarding on rules of information, in particular. In addition to the regulations and internal acts, the Su commissions operate Two within the framework of the Supervisory Board: the audit commission whose tasks are specified in Article 280, Companies Act 1, and The personnel commission consists of: Stanislav Va ing acted independently in making decisions. Every member completed a statement with regard to a con- flict of interest and submitted it In to this the company. con a in not are they that declare members statement, flict of interest in 2011, or disclose any such conflict of interests. fice, the Supervisory Board adopted and applied the method of on-going assessments of its work and in- ternal evaluations, and it also continually adapted the manner of its work. In 2011, the frequency of meetings increased, as 9 meetings in total and a few informal consultations in order to prepare for the meeting were held. The activities were mainly due to the aggravated economic and financial situation, the appointment of the new Management Board, dealing with short-term measures and their implementation for consolidating the operations, monitoring, forming and implementing the strategic guidelines. The meetings were attended by all Supervisory Board members, as a rule, the reso lutions were adopted unanimously. pervisory Board observed the Corporate Governance Code for Slovenia at its work, which is made clear in the Statement on Conformity with the Corporate Gov principle the considered it Furthermore, code. ernance of rational; the relevant costs of the Supervisory Board are disclosed in the annual report. a personnel commission which combines the compe- tences of a commission for appointments and that for earnings. The commissions reported about their work to the Supervisory Board on an ongoing basis. Supervisory The Board estimates reports and work by the audit and personnel commissions in 2011 as efficient and successful.
Supervisory Board Supervisory Report by the the by Report 24 ANNUAL REPORT 2011 INTRODUCTION • • • system are: supervisory the of elements organisational Individual • • • • • • • pervision systemare: s this of elements formal and substantive Individual eration oflegalrequirements. ganises its operations to the optimum extent in consid or it whereby business, company’s the of supervision thorough a performs carefully Board Supervisory The performance The mannerofsupervision
enough; frequently meets Board Supervisory Board Supervisory the of collaboration Supervi the elements, defined legally the the at both auditor an with discussion personal reports concerning the results of company Group and company the of results with to regard with activities sales on reporting agenda item at every meeting dealing with: nagement Board. by the Supervisory Board independently of the Ma- drafted operations business the of estimate depth in- an includes also work its on report Board sory al questionsofsignificance. meetings intotal. gally defined. In 2011, the Supervisory Board had 9 le- as year a times four than more meets always it Board abouttheirwork. Supervisory the to report regularly the commissions commissions; personnel and audit the with as well as ad hoc meetings in the event of individu gs when annual financial statements are dealt with, meetin- commission audit and Board Supervisory and Groupbusinessoperations. Board meeting. Supervisory regular each at operations business the large-scaleinvestments. company. on granting approvals for transactions made by the decision-making regards as shareholders) the by defined as rules (i.e. Association of Articles the in place. takes meeting the before week one least at sent is A Monthly Dealing Regular Special Consistent Meetings The Efficient Besides (v) (iv) (iii) (ii) (i)
Ownership structureofSavad.d. Any changewithregardtoownshares Share pricefluctuations Options andforwardtransactions Status andchangesinfinancialinvestments
are well prepared. As a rule, the material the rule, a As prepared. well are performance of the provisions set out set provisions the of performance
- - - -
order) isgiveninthefollowingwording: chronological (in Board Supervisory the of meetings individual at resolutions important more of summary A egy byindividualsegment. strat the of implementation and preparation the about Board Supervisory the to reporting current of task the agement Board, and assigned the Management Board of Sava until 2014 as prepared by the company’s Man- restructuring business-financial of strategy the ported sup- unanimously Board Supervisory the when 2011, thus adopted at the 28 was resolution substantive important most The 2011. July 16 on office of term his of expiration regular a til un office member Board Management the out rying car with proceeded Perčič Vinko Board Management former the of member third The MSc. Strajnar,Franci and Resman Miha Andoljšek, Andrej follows: as 2011, March 31 on began which office, of term five-year a at this meeting the new Management Board members for appointed Board Supervisory the Vizovišek, Emil member Board Management the with contract ment manage of termination on agreement mutual a After a aotd t h 22 the at adopted was year past the of resolution personnel important most the 2010, December in d.d. Sava of Board agement of Matej Narat, MSc, as the new President of the Man appointment the and Bohorič, Janez Board agement Man the of Chairman the with contract management the of termination agreed the After basis. ongoing an tions on the most important matters of the company on resolu adopted and pursued Board Supervisory The the SupervisoryBoard The mostimportantresolutionsof • • • • • •
Supervisory Board Chairman who present the present who Chairman Board Supervisory materials the prepare who persons meetings, Management Board members attend all the me Sprioy or asgs h Management the assigns Board Supervisory
etings. always presentattheShareholders’Meeting. are Auditor the and Board Supervisory the of work detailed andcarefultreatmentofallagendaitems. a for time enough provides which hours, five than work asreporters. taey f aa .. n te aa ru until Group Sava the and d.d. Sava of strategy the presents for further measures and improvement, critical business most of proposal a 2011 June 30 than later not preparing of task the Board The Meetings All SupervisoryBoardmembersattendmeetings. At All The ae t es tre or ad o more not and hours three least at take th meeting held on 27 September nd etn i Fbur 2011. February in meeting ------
INTRODUCTION ANNUAL REPORT 2011 25 ------th meeting). th The The The The The The The The The the operation of the Sava Group and Sava d.d. in 2011. the period January-March 2011. the report on maintaining liquidity in the activities for insuring the value of investment in Merkur d.d.; furthermore, it becomes acquainted with the set of measures in relation to securing the Bo Management former the to d.d. Sava of claims ard of Merkur d.d., the company Merfin d.o.o. and measures. the to support its gives and partners, its Sha the of Agenda the extend to shareholders the reholders’ Meeting of Sava d.d., and a proposal of a resolution to the additional Agenda items (25 The Supervisory Board proposes the Sharehol audit commission about its work in relation to for ders’ Meeting to adopt the following “The Shareholders’ resolution: Meeting becomes acquainted with the audited report of Sava d.d. for 2010, the audited consolidated annual report of the Group Sava for 2010, and a written report by pervisory the Board for 2010. Su- The Shareholders’ Me eting adopts the resolution that the accumulated profit of Sava d.d. which as per audited balance sheet at 31/12/2010 was shown in the amount of € 6,530,000.00 remains undistributed until further notice. The Shareholders’ Meeting grants dischar ge from liability to the Shareholders’ Meeting confirms and approves the Supervisory Board. The work of both company’s bodies in year 2010.” the financial ward sale of shares of NLB d.d. and a receivable due from NFD Holding d.d. MSc, as deputy chairman. The Supervisory Board elects Janko Kastelic as member and chairman of the audit commission. The Supervisory Board elects Robert Ličen, MSc, as member of the audit commission (26 meeting). measures programme that aims at improving the operation of the Sava Group and Sava d.d. sting in the Tourism division. sting in the Tourism ders’ Meeting to adopt a resolution: “Deloitte re vizija d.o.o. is appointed as auditor of the financial statements of the company for 2011.” Supervisory Board elects Stanislav Valant, Supervisory Board receives the Report about Supervisory Board becomes acquainted with Supervisory Board becomes acquainted with Supervisory Board receives a report on dive Supervisory Board deals with the request by short-term the presented is Board Supervisory Supervisory Board proposes the Sharehol Supervisory Board receives the report by the
• • • • • • • • • • - - - - - mee- th meeting). nd meeting. The Supervisory Board th meeting). rd and 12 th The The The The The The The The The The of Sava d.d. for 2010 and the consolidated annual Supervisory The 2010. for Group Sava the of report Board Supervisory the by Report the adopts Board on examining the audited annual report of Sava d.d. for 2010, the audited consolidated annual re of proposal a and 2010, for Group Sava the of port using the accumulated profit for 2010 (24 the report by the personnel commission and the elements of contracts made with the Management Board members of Sava d.d. as an audit commission member from 31 March 2011 until 28 June 2012. Board with a task of preparing a report about the status of a receivable under the syndicated loan agreement due from NFD Holding d.d. the report by the audit commission and its work at the 11 ted profit but only to the extent, which assures that in made is amount dividend the about decision any policy. accordance with the adopted dividend the report on the sale procedure of Abanka Vipa d.d. and other planned divestments. the information on liquidity of Sava d.d. the information on allocate to Board Management the by intention the accumula the to reserves revenues other of part a the Supervisory Board acquainted with adoption of adoption with acquainted Board Supervisory the the rules of procedure of the Management Board, which defines the scope of work for the Manage 1 September 2011 at the latest. The Supervisory Board recommends the Management Board present to both documents as soon as possible to (22 the Supervisory Board ment Board members as soon as the new Mana in April 2011. gement Board is constituted vernance Policy of Sava d.d. and a Statement on Corporate Governance for the company. ting). demands from the Management Board to adopt a of sale the govern will that document a of proposal assets (23 Supervisory Board confirms the annual report Supervisory Board appoints Gregor Rovanšek Supervisory Board becomes acquainted with Supervisory Board assigns the Management Supervisory Board becomes acquainted with Supervisory Board adopts the Corporate Go Supervisory Board becomes acquainted with Supervisory Board becomes acquainted with Supervisory Board becomes acquainted with Management Board of the company makes
• • • • • • • • • • 26 ANNUAL REPORT 2011 INTRODUCTION • • • • • • • •
Sprioy or bcms acquainted becomes Board Supervisory with acquainted becomes Board Supervisory a of sale the with agrees Board Supervisory with acquainted becomes Board Supervisory with acquainted becomes Board Supervisory with acquainted becomes Board Supervisory with acquainted becomes Board Supervisory Supervisory Board agrees with the intent of the sation ofthissale. reali the on Board Supervisory the to reporting of task a Board Management the assigned Board ry other conditions are fulfilled as well. The Superviso- and Perovo) are separated from Sava IP d.o.o. and Tacen(Izola, property real of sets three sale, the re ce with the presented terms and conditions. Befo ments madeinnegotiationswiththebanks. agree- the of contents the about Board pervisory mission (29 by KPMGSlovenija,podjetjezarevidiranje,d.o.o. produced was which 2010, June 2 dated sactions, TranSelected the with Connection in Procedures Performed the on Based Findings Actual of mary Sum the company the of website the on post and sign confidentiality a withdraw to Board pervisory an expertopinion. all examine aspects of the transaction in question and prepare shall commission The too. experts external be to are members whose independent commission an appoint to Board Management the recommends Board Supervisory The d.d. NLB of shares the with of repurchase forward the circumstances to regard and facts the on report the 100% business stake in Sava IP d.o.o. in accordan Su the informing of task a with d.d. Sava of Board Management the assigns Board Supervisory The 2012. for Group Sava the of report business the transaction inquestionisproduced. the of course the on Audit Internal the by report a and out carried is audit internal an after Zagreb, d.o.o., Nova Sava in projects of rehabilitation the com audit the by report the and Group, Sava the in 9+3/2011 period the for forecast business the 2011, January-September period the in d.d. Sava the Report on the operation of the Sava Group and report (27 report by the audit commission on the semi-annual Sava d.d. in the period January-June 2011, and the the Report on the operation of the Sava Group and Su the of chairman the and Board Management ih h Rpr o Cnrcul eain wt the with relations Contractual on Report the with The The The The The The The The th meeting). th meeting). ------
tion. the meeting were prepared and adopted with a resolu- of minutes the meeting Board Supervisory each After or the for statements profit. comparative periodic and Furthermore, value added costs, sales, liabilities, and assets of categories the are These Group. Sava the af and Sava company stock joint the of business the fect that categories important most the all explained and presented Board Management the reports its In changes takeplace. strategic major when significance special of is which it concentrated on the human resources management, operates Furthermore, Group. the of company parent the within which division, Finance Investment the to attention its devoted primarily Board Supervisory The statements oftheentireSavaGroup. consolidated the and programmes, production and companies larger of operations business and policies the Supervisory Board primarily referred to the strategic of interest The divisions. separate within programmes view of individual companies or production and service The Supervisory Board was also allowed to make a re tive effectsofindividualoperationstheSavaGroup. thereby enabling one to monitor the positive and nega Operations, Other and Estate Real Finance, vestment Tourism,In TradeNetwork, Foreign the with facturing involved the operations of the divisions: Rubber Manu These effects. business all of review synthetic a with areas individual to according produced were Board Management the by reports The role. supervisory its open, which enabled the Supervisory Board to exercise and fair continual, was Board Management the by ing report 2011, In schedules. defined and standards ing report achieved the with accordance in and manner suitable a in performed was Board Supervisory and Board Management the between communication The Board Reporting bytheManagement ments andmanagementcontractsmade. agree contracts, employment the with as well as Slovenia, for Code Governance Corporate the 1, Act- Companies the of provisions the with dance to the Management Board members were in accor ,andthatpayments ard memberseversince2005 Bo Management the of remunerations other and salaries about data the disclosed d.d. Sava that establishes Board Supervisory The 2006-2011. ce offi of term their in members Board Management ------INTRODUCTION ANNUAL REPORT 2011 27
------Business performance of the Sava of the performance Business Group Sales revenues In 2011, Sava Group companies generated sales rev enues of €193.8 million, which was 10% better than in at the planned level. the previous year and Owing to a growing demand and, as a result, the in com Manufacturing Rubber orders, of volume creased rev sales made Network Trade Foreign the with panies enues of €119.2 million, which is a 10% improvement better 6% and year, previous the of period same the on than planned. Sales revenues in companies Tourism amounted to €64.8 million, and surpassed the 2010 revenues by 7%, and the planned ones by 0.5%. As were companies Estate Real of revenues the expected, 12% lower than while in they lagged the previous year, by one half behind the planned value, as a result a of further decline in the purchase power and a stricter policy for financing the real estate projects. Net loss In 2011, the Sava Group made a net loss of impair the to due greatly was amount loss The million. €157.2 totalling investments financial and inventories of ments €160.3 million. Balance sheet total The balance sheet total of Sava amounted to €611.3 million Group at 31/12/2011 and was by companies €149.6 million or 20% lower than at the end of 2011. Assets and liabilities structure In the assets structure, short-term assets for sale financial had a 45% share, property, investments and as short-term other share, 37% a equipment and plant sets a 14%, and other assets a 4% share. Sava The the of major assets of value the in decrease net a of part Group in 2011 resulted from the impairments of finan cial investments. long- share, 27% a had capital structure, liabilities the In debts a 60% share. term debts a 13%, and short-term 50% of long-term assets of Sava Group companies were financed with long-term sources, and 50% with sources. short-term Capital value of the Sava Group decreased by €157.6 in made loss the to due mainly was and 49%, or million the amount of €157.2 million. short- and loans long-term obtained totally of value The 31/12/2011 at Group Sava the of liabilities financial term ------In 2011, the market value of financial investments of Sava d.d. further strongly dropped, while the loan ex nies in 2011. While the companies of Tourism, Real Es Real Tourism, of companies the While 2011. in nies planned the behind lagged Operations Other and tate, results in spite of their adapting to the circumstances, the companies of Rubber Manufacturing with the For better even excellently, 2011 ended Network Trade eign important most The planned. than better and 2010 than events that tailored the performance of Sava d.d., the parent company of the Sava Group, for the fourth year in succession, were the additional impairments of fi nancial investments. posure remained at a high level from before the crisis. A new long-term business strategy of the Sava Group was devised whose important part is the programme of divesting investments and the reprogramming of fi compa the of activities principal The liabilities. nancial ny’s Management Board in 2011 included the search for possible disposals of investments, maintenance of current liquidity in order to regularly settle financial li abilities and the regulation of relations with the banks and other creditors. By signing the agreement on re programming, Sava will be able to regulate the struc ture and maturity of sources over a long period of time for all Sava Group companies, and will make a com mitment to all lending banks for a timed disinvestment of investments and decreasing debts to a long-term sustainable level. Business estimate The exacting economic environment strongly impact the continued operation of Sava Group to compa The area of liquidity maintaining was given a special Super the informed Board Management The attention. The Management Board further explained other cate- Super the by requested was explanation whose gories past year and planned statements for the comparative period were added. In this way the Supervisory Board could continuously pursue the performance trend with and planned business operations. respect to the past topic, this of elements critical most the on Board visory imple the on reporting of part integral an formed which mentation of the 2011 business plan, the performance of short-term measures, and the implementation guidelines. Sava Group’s strategic of visory Board, and made sure that internal and external expert opinions were prepared when required and re- quested by the Supervisory Board. 28 ANNUAL REPORT 2011 INTRODUCTION o eue h laiiis rm band on o S of loans obtained from liabilities the secure To the SavaGroupinamount of€290.0million. of out obtained loans included d.d. Sava of liabilities last year they were by €5.0 million lower. Total financial period same the to compared if and million €309.3 of value the reached d.d. Sava Totalof liabilities financial to thelossmadetotalling€156.1million. due mainly was and 63% or million €151.5 by creased de 2011 in d.d. Sava of capital of value the 2011, In nancial liabilities a 76%, and other liabilities a 3%share. fi share, 21% a had capital structure, liabilities the In to theimpairmentsoffinancialinvestments. due was d.d. Sava of value assets the in decrease net 5%, and other assets a 6% share. The main part of the financial short-term other share, 4% a equipment and property,share, 85% an plant had sale for assets term short- and liabilities financial structure, assets the In Assets andliabilitiesstructure or 27%lowerthanattheendof2010. million €149.5 by d.d. was and million €410.0 to amounted Sava of total sheet balance the 31/12/2011, At Balance sheettotal amounted to€9.3million. loss accumulated the 31/12/2011, at Thus covered. be not could loss the of portion a whereas purpose, this for earmarked components capital with covered lion. The 2011 loss in the amount of €146.8 million was mil €158.1 of amount the in investments financial of impairments to due mainly was and amounted million €156.1 2011 to in d.d. Sava by made loss net The Net lossandaccumulated companies. Group’s to sold d.d. Sava which service the resented rep revenues sales of 81% sales; cumulative the in share 4% a only had revenues Sales plan. above % 5 and year previous the in than less 46% was which million, €5.5 of revenues sales generated d.d. Sava Sales revenues Business performanceofSavad.d. balance ofequityshowsanegativeresult48.6%. average and loss net the between ratio calculated The Return onequity less thanattheendof2010. amounted to €371.3 million, which was by €10.7 million ava - - - - balance ofequityshowsanegativeresult64.7% average and loss net the between ratio calculated The Return onequity in favourofthecreditors. Turizem Sava d.d. of in the amount assets of €5.1 million the were pledged and million, €34.6 of amount the in d.o.o. Savatech subsidiary the of assets the million, €277.2 of amount the in d.d. Sava of assets the d.d., reorganisation carried out at the beginning of the yea the and Turizemd.d. Sava company uniform a of tion ularly because of the effects originating from the forma the current business of the Sava Group in 2012, partic fective, which is a great promise for further bettering of sion with the Foreign Trade Network was particularly ef divi Manufacturing Rubber the of operation business The improving. is business current that meaning sis, cri economic the before period the in made revenues of level the above and level planned year,at previous the in than higher 10% by were and million €193.8 to amounted 2011 in Group Sava the of revenues sales generated the that establishes Board Supervisory The pany andtheGroup,respectively. com the of liabilities financial of settlement regular a with along liquidity current assuring and divesting their investments, and implementation of the programme of and disposals for possibilities for search the on tors, credi other and banks the with relations the of regulation on concentrated thus year business past the of activities major The implemented. were strategy turing abilities, whereas other measures set out in the restruc li financial of reprogramming the to as began banks the with discussions intense the and 2011, of ginning The new Management Board was appointed at the be value andliquidityoftheSavashareatsametime. the preserving for conditions the creates it and age, capital suitable structure of the as company, which requests for a delever and liquidity sufficient concept, strategic sustainable a assure to is goal whose 2014 until Group Sava the of strategy new the in corporated in- was programme the 2011, In investments. certain of finance divesting for potentials for for searching and deadlines sources of coordinating further flow, cash the strengthening operation, current the proving im at aimed particularly programme the 2011; in out carried and outlined was programme measures term short- the that established has Board Supervisory The Final evaluation of the operation and priority activi ties inthecurrentyear . r. ------INTRODUCTION ANNUAL REPORT 2011 29
------in operative business and genera the banking sector by continuing the for stabilisation and consolidation of coordination of deadlines for financing Strengthen Improvements Measures Additional A A activities for a tie-up between Abanka Vipa and Gorenjska Banka d.d. d.d. Group’s cash flow. the banks). sources (signing the agreement with agreed and harmonised disinvestment activities considering and platforms suitable of basis the (on various scenarios). tion of a free cash flow, as well as strengthening the responsiveness to the changing conditions for doing business. ration in all work areas and implementation of su- itable measures for improving the operative busi ness, respectively.
particularly rigorous monitoring of Group’s ope controlled and professional performance of the
• Auditor’s report The Supervisory Board became acquainted with the opin auditor’s the that determined and report auditor’s • • • • • ion is affirmative. The auditor has also presented his views to the the of meeting the in collaborated and Board Su pervisory former The Board. Supervisory the of commission audit auditor attended the Shareholders’ Meeting in 2011, whereas the auditor appointed for auditing this annual report will be invited to this year’s Shareholders’ Meet ing of Sava d.d. The Supervisory Board has no comments on the au ditor’s report. It determines that the auditor’s contains report the constituents prescribed in Paragraph 2 of Article 57 of the Companies Act-1. The auditor has confirmed that the financial reports have been pro Group’s operation in all areas, as well as a well-super and agreed the of performance professional and vised activities. disinvestment harmonised This means that all activities in the transitory period of of implementation the on concentrate to have will 2012 and particularly on: the adopted policies, The restructuring of a portfolio and the efficient imple- mentation of disinvestment programme will be of vital importance in 2012, but also in the coming years, as it will greatly consolidate the financial position of the fis this of result generated the influence and company cal year.
------The net loss made in the Sava Group in 2011 impair the in to due greatly was million €157.2 the of amount As Sava d.d. and the Sava Group already utilised total reserves formed in the past years for minimising the adverse effects of impairing the financial investments in 2011, the said net loss of 2011 was not entirely cov For this reason, an immediate, not to be delayed im The new Management Board still has to follow the pri However, However, the Supervisory Board further the of performance the period established four-year past the in that Group Sava the of that and d.d. Sava company parent was affected by significant impairments of financial in vestments. For already some time the now, unfavour able movements in the financial markets have had a prevailing influence on the value of financial ments and thus the invest operating result, which is why the value of company’s financial investments significantly decreased in 2011 too, whereas its indebtedness and ex levels high at remained respectively, exposure, loan of beginning the before period the in already perienced the economic crisis. ments of financial investments totalling €160.3 million. The generated net loss of the parent company Sava d.d. in the amount of €156.1 million d was greatly due to the impairments of financial investments totalling €146.8 million. ered from capital components and the accumulated loss amounted to €9.3 million at 31/12/2011. plementation of the set strategic activities is sary neces- that will enable Sava to re-establish its reserves, thereby preserving the internal ability for responding in the case of a fiercer crisis and, as a consequence, in the event of a further decline in the value and liquid- ity of financial investments, even though any such ad ditional decrease is not very likely. To strengthen the financial position of Sava, an additional conversion of short-term into long-term sources is of significance on the one hand, while on the other hand the new Man agement Board will have to carry out disinvestments since the share of own sources (capital) in the liabili ties structure lowered to about 20%, which makes dis investments the only way for a significant deleverage of the Sava Group. The Supervisory Board pointed out the need for divesting already in 2010 and 2011, last of strategy the to support its through also least, not but the Sava Group until 2014. ority guidelines, which include the measures for stabi lisation and strengthening the cash flow of the Group, an additional coordination of deadlines sources, for and finance an even more rigorous monitoring of 30 ANNUAL REPORT 2011 INTRODUCTION operating profitgeneratedin thepreviousyear the doubled have would d.d. Sava of subsidiaries the excluded, been had Tourism in - provisions and tate Es- Real in inventories of impairments – events dinary Tourism improved its operation. If the impact of extraor while ever, result best the showed Manufacturing ber supervision over costs. The operative business of Rub rigorous a and operation the in rationalisation efficient an from resulted which growth, revenues the behind points percentage 8 by was growth expenses far.The so level highest the surpassing thereby sales, Group’s Sava in growth 10% even an to contributed markets, growing fast the in particularly market, the in sitioning po- stronger a and innovation The years. past several during economy the affecting been have which crisis, financial-economic the of impacts negative the inating measures that aim at stabilising the operation and elim short-term of programme the perform and prepare to for the development of Sava. They immediately began management team took up their duty with a new vision new the members, Board Management former three of out two for office of terms of termination premature agreed the and d.d. Sava of Board Management the of members and President new the appointing After as fortheindustrialsectoringeneral. year, both for the company and its shareholders as well preceding the than difficult more even was vironment owing to the increased uncertainty in the economic en which 2011, in d.d. Sava of Board Management the th reviewed Board Supervisory The review Management Board’performance nual report. an consolidated the and report annual the endorse to decision a of adoption the from it withhold would that annual report and the 2011 consolidated annual report 2011 the on comments no has Board Supervisory The annual report and the2011consolidated Board onthe2011annualreport Comments oftheSupervisory Financial ReportingStandards. International of provisions corresponding employing by and company the of policies accounting the dards, Stan Accounting Slovene with accordance in duced promne of performance e
.
------planned until the end of 2011, and effectively c effectively and 2011, of phase, end the until restructuring planned first the in commitments tegic stra the fulfilled consistently Board Management The visory Boardreliesuponin the futuretoo. financial partners – lending banks, on which the Super the by support full the on depends greatly also ever, how- implementation, effective Its environment. nomic eco volatile present, the in also track right a on Sava way,the is this that directs believes which firmly Board on the consolidated financial platform. The Supervisory company the of development successful a facilitating Future the for Renewed strategy Sava’s company. the of shareholders the for value long-term a create and profitability renew ness, strategic other shifts in order to achieve a sustained level of indebted and d.d., Sava of structure portfolio investment organisation, managing, of manner the in was adopted in September and brings radical changes for business-financial restructuring until 2014; the strategy strategy the of drafting the undoubtedly, is, year financial past the in d.d. Sava of Board Management the by contribution significant A measures. long-term efficient more even and changes extensive more ing introduc for determination their consolidated further only crisis, financial the to responding their had in face to Board Management the which conditions, The longer periodoftime. a over coordinated be will liabilities financial Sava’s of maturity the which of way by agreement, an with ed complement be will programme the 2012, In position. financial the strengthening and liquidity maintaining for short-termmeasures the from resulted that 2011 of successes remarkable the of one was liabilities loan Group’s of payment the postponing on banks lending the with agreement The liquidity. current maintaining in hazards the face to had - loans for price high and availability low a and volume indebtedness the given - Board Management the which at far, so sequences con serious most suffered has company The riorated. dete- structure assets the and significantly decreased capital the loss, substantial a to changed Group the and company parent the of result positive a this, ing do after companies; associated its to referred mainly which million, €160 about of amount total in vestments in financial impair to had d.d. Sava markets. nancial fi the in circumstances and movements unfavourable further by influenced greatly still was result operating the challenges of doing business in the real sector, the on take effectively to able were subsidiaries in teams Board Management the While es u cer udlns for guidelines clear out sets and their management their and arried ------INTRODUCTION ANNUAL REPORT 2011 31
------
Endorsement of the annual report for 2011 Endorsement of the annual report report and the consolidated annual The Supervisory Board endorses the annual report of Sava d.d. for 2011 and the consolidated annual report of the Sava Group for 2011. In accordance with Paragraph 3 of Article 282 of the the Supervisory Board adopted Companies Act-1 April 19 on meeting 32nd its at reports annual 2011 the 2012, thereby receiving them within an open deadline, i.e. before one month expires including the day both annual reports for 2011 were submitted to the Super Miran Kalčič visory Board. key personnel and the measures for encouraging em ployee motivation, their loyalty and commitment in the changes. process of on the of part actions all and efficient The engagement Management Board Super members the to which fulfil for short-term maximum, and the to was goals strategic visory Board wishes to express their full acknowledge the above-mentioned, the on Based support. and ment Meet Shareholders the to proposes Board Supervisory Manage of Board to liability from discharge grant to ing 2011. in work their for d.d. Sava of ment The Supervisory Board wishes to thank the Manage- ment Board members as well as the employees of the Sava Group for their work in 2011. The mutual they have established and a close mutual cooperation trust of light the in Sava which to owing factors vital the were the current circumstances was able to effectively end one of its toughest - if not the toughest - entire and history, made sure year that a decisive in step can its be taken towards the formation of its renewed future image. Chairman of the Supervisory Board of Sava d.d In Kranj, on 19 April 2012 ------Given the circumstances and limitations in doing busi Irrespective of though circumstances and a high work load, the Management Board actively and continually collaborated with the workers’ representatives in mak out a wide set of measures for a corporate renewal and renewal corporate a for measures of set wide a out a different, better future of Sava. The result of the per formed revitalisation of the parent company is the new organisational structure, changed management mod el, for a leaner, and in terms of organisation, a more simple, cost-efficient and management-efficient Sava that is better flexible and responsive too. The present corporate structure of Sava d.d. includes more clearly defined reporting lines and a decentralised decision- making model, which transfers a full responsibility for the operation to the level of subsidiaries. This assures a more efficient management and supervision made Board Management the which in operation, their over a significant contribution by establishing a Directorate for Sava Group’s Managing. After the reorganisation of Sava d.d. was completed, the company is adapted to the current better situation and to the future chal lenges also in view of a lower employee number and it achieves significant advantages owing to a substan tial saving in other operative business costs. Another complex project was completed just before the end of uni a in companies Tourism all of merger the year: the form Sava d.d., Turizem which will facilitate a consoli dation of operations, assure a higher cost-efficiency and strengthen the synergies in the operation of this division. ness, the Management Board of Sava d.d. efficiently and Group Sava entire the and company the managed worked hard for the benefit of the shareholders and the company in maintaining the safety and stability of attention their of much devoted They operation. Sava’s to analysing the future opportunities and hazards, the potential further negative effects of the financial crisis se they which of way by particular, in operation, the on preparation the for platform strong a themselves cured and efficient implementation of the adopted strategy for business-financial restructuring. included which decisions, the especially decisions, ing reducing the employee number. Furthermore, devoted their special they attention to the development of 32 ANNUAL REPORT 2011 INTRODUCTION attended by all shareholders and their proxies or repre- venes the Shareholders’ Meeting once a year. It Sav can be of Board Management the rule, a As tion. the Articles of Association of Sava d.d. and the legisla in governed are implementation its for significance of vening of the Shareholders’ Meeting and other matters con The Meeting. Shareholders’ the in company the with connection in rights their exercise Shareholders Shareholders' Meeting of Sava d.d. cases. ers and transfers the already established best practice regulations and books of rules, at which it also consid organisational internal Exchange, Stock Ljubljana the of rules provisions, legal on based is subsidiaries its and d.d. Sava of system governance corporate The system ofcorporategovernance. one-tier a has companies Group Sava of None nies. compa the of management efficient and processes business over supervision the Meeting, Shareholders’ the by decisions making on based is process man- aging The companies. Group’s the standardised of and management simplified a for strives d.d. Sava managed inthesamemanner. are d.o.o. Črnomelj Energetika Turizemand Sava d.d. companies The Board. Supervisory the by supervised being operations its Board, Management system. tier two- the of way by conducted is d.d. Sava Managing the Group. in companies all of operation the for advantages tive competi- continuous for provide to order in bodies its under of operation suitable a assures that system a as stood is Group Sava the in governance Corporate governance the two-tiersystemofcorporate Sava Groupcompaniesemploy tribution tofurtherimprovementsinthequalityandefficiencyofcorporategovernanceSavad.d. con significant a makes latter The Group. Sava the managing for Directorate a established renewal strategy the under who management, new the by over taken was company the of management the 2011, In goals. A well-organised and efficient corporate governance system supports the implementation of Sava’s business dd con d.d. a 8 8 ------system Corporate governance The Management Board called the 17 the called Board Management The proposed resolutions. the with materials the to access provides further site web- company www.sava.si.The at website company the and SEOnet, Exchange, Stock Ljubljana the of system information electronic the Finance, newspaper the in Meeting, the before days 30 least at announced is Meeting Shareholders’ the for call The Meeting. ers’ tion in writing at least three days prior to the Sharehold participa their respectively,announce sentatives, who oy or. ih sial mjrt te seconded they majority suitable a With Board. sory Supervi the from report written a and reports annual audited the with acquainted made were and Meeting Shareholders’ the of bodies the elected Shareholders shares), andMerkurd.d.8.24%(134,923shares). 11.38% (186,323 shares), Finetol d.d, 10.08% (165,030 Družba d.d. 13,56% (222,029 shares), PSL Odškodninska Storitve d.d. Slovenska shares), d.d. (375.542 Družba 22.94% Kapitalska follows: as present, capital the of shares) (1,083,847 81.6% to amounted holders share largest five first the of rights voting of share The at shares). (1,637,211 Meeting Shareholders’ right the tended voting with capital company’s total of 83% received induetime. vidual transactions of the company. The demand was indi- examining for auditor special a appointing and members, Board Supervisory the appointing and ing holders, to expand the Agenda with the items on recall- share three from demand a received Board agement Man the Meeting, Shareholders’ the convening After Clearing Corporation. Securities Central KDD the of registry share the in ers own share as registered were 2011 June 4 on who owners share the by attended was Meeting holders’ Share The 2011. June 8 for Meeting Shareholders’ th regular annual regular ------INTRODUCTION ANNUAL REPORT 2011 33
------Management Board of Sava d.d. Sava d.d. is managed by a ment four-member Board as Manage appointed by the Supervisory Board. Until 30 March 2011, the company was managed by the long-time three-member Management Board with Janez Bohorič as chairman, and Emil Vizovišek and Vinko Perčič as members. The latter continued to car ry out the office until a regular expiration of his third five-year term of office, which was 16 July 2011. The Articles of Association of the company and book of the procedures concerning the work of the Super visory Board define the method of working, convening meetings and other issues of importance for the work Board of Sava d.d. of the Supervisory The legislation and book of procedures of the Super visory Board define that the Supervisory Board has to meet at least once every quarter. In 2011, the Super visory Board members met at nine regular meetings, which was due to the aggravated with situation dealt Board Supervisory The facing. was company that the is important numerous concerning decisions took and the by Report the in detail in presented are which sues, Supervisory Board. In all meetings, all Supervisory Board members were present, which shows their outstanding commitment their to Owing tasks. their out carrying in diligence and constructive cooperation in discussions and the deci- sion-making process all Supervisory Board members importantly contributed to the success and efficiency of the Supervisory Board’s work. The audit and personnel commissions of the Supervi sory Board worked intensively too. In accordance with the legislation, the audit commission has an external Kostja Bizjak. independent Each member, of the com- regularly commissions Both times. seven met missions reported about their work at the Supervisory meetings. Board Due to the above-described changes in the member ship of the Supervisory Board, the audit commission was complemented and is now managed by Janko Kastelic. More on the operation of the Supervisory Board and both commissions is presented in the Report by the Supervisory Board. ------Supervisory Board members are elected for four years with a possibility of re-election. The term of the pres ing, while three members were elected by the Workers’ Workers’ the by elected were members three while ing, Council in accordance with the Worker Participation in Management Act. except 2012, June 28 on expires Board Supervisory ent for two of the members, Robert Ličen, MSc, and Aleš Skok who were elected in the Shareholders’ Meeting in 2011; their term of office shall be until 9 June 2015. Supervisory Board of Sava d.d. members. nine of composed is Board Supervisory The Six members were elected by the Shareholders’ Meet One of the shareholders announced two resolutions of the to Shareholders’ Meeting and challenge re- proached the Shareholders’ Meeting with made mistakes at their work. The company these established reproaches that were not grounded and Shareholders’ that Meeting the was conducted faultlessly in terms of substance and procedure. The shareholders file not did resolutions the challenging announced who any challenging action. a proposal by the Management Board on the use of accumulated profit, granted discharge to the Manage- ment Board and Supervisory Board of the company. As proposed by the Supervisory Board, they appoint ed Deloitte Revizija d.o.o. as auditor of the 2011 an nual financial statements to replace the previous long- time auditing company. The Shareholders’ Meeting became acquainted that Workers’ mem Board Supervisory new the Council as Rovanšek Gregor elected ber for the term of office from 31 March 2011 28 until June 2012 to replace Miha Resman who was ap pointed the Management Board member of Sava d.d. Supervisory the appointing and recalling to regard With Board members, shareholders supported the counter- proposal of Kapitalska Družba d.d. and voted Robert Ličen, MSc, and Aleš Skok the new members of Su pervisory Board for a term four-year of office effective as of 9 June 2011. The office of the then Supervisory Board members, Marko Pogačnik, MSc, and Tomaž thus Toplak, expired. In making a decision about two sets of proposals for resolutions under the in examine to auditor special a appointing about item Agenda did shareholders company, the of transactions dividual not motion any of the resolutions proposed. Corporate governance governance Corporate system 34 ANNUAL REPORT 2011 INTRODUCTION development oftheSavaGroup. the accelerating and performance the enhancing for conditions the and create to order in system supervision strategic governance corporate efficient and ity qual a assure to is goal Its 2011. October of ginning be- the at functioning began Marinič, Milan by aged man Group Sava the managing for Directorate The nagement Directorate forSavaGroup’sma- excess of20%thesharecapitalSavad.d sition, disposal or encumbrance of ownership stakes in obtain consent from the Supervisory Board; e.g. acqui to has it transactions certain or decisions certain For supported. unanimously Board Supervisory the which adopted, was 2014 until Sava of strategy new the September, of end the At implementation. management risk and strategy corporate the about it with harmonised and Group Sava entire the and company the of agement man the to referring issues important all on manner timely and understandable regular, a in Board visory In 2011, the Management Board reported to the Super until thattimewascarriedoutbyMiranHude. which procuration, of office the of suspension about management. In February 2012, it adopted a resolution Group’s Sava for directorate of director a and Board Management the to assistant senior a as Marinič Milan On 1 October 2011, the Management Board appointed process. decision-making the in possible as associates of circle broad as incorporating by managing of efficiency and quality the achieved Board Management The jointly. members Board Management two by represented is company The Board. Management the for cedures pro of rules the of part constituent a form and Board, Supervisory the from resolution the by defined are ies ment Board members and their areas of work and prox Manage of number responsibility.The own its on and business for the benefit of the company, autonomously The Management Board managesSava d.d. anddoes a five-year term of office with option of re-appointment. for appointed were members Board Management The Members. as Strajnar,MSc, Franci and Resman Miha Andoljšek, Andrej ad President, as MSc, members: Narat, Matej four of consists 2011 March 31 on office their up took which Board, Management present The . ------
the SavaGroupinclude: over supervision strategic and governance corporate The key areas of the Drectorate for assuring an efficient h Drcoae o Sv Gops aaeet as sures: management Group’s Sava for Directorate The ture oftheSavaGroup). struc- Organisational – 3 chapter in presentation tailed in management de (a d.d. Sava of services professional seven cludes Group’s Sava for Directorate The • • • • • • • • • • • •
preparation of documents and policies for ma establishing and activities take-over in articipate compliance and lawfulness safeguarding in on oftheadoptedpolicies. tings. by the Management Board of Sava d.d. at its mee upon decided be to investments capital other and companies associated and subsidised the naging dual Groupcompanies. indivi- of bodies other and supervisory of work the e cmais ad hi icroain n the in Sava Group. incorporation their and companies, new of Savad.d. panies. and monitoring the operations of Sava Group com ad, andmonitortheirimplementation. abro- and home investments capital for policy the its implementation. monitor and Group, Sava the of proposal strategy external andinternallegislationrules. the with companies Group Sava in operations of at thelevelofentireSavaGroup. applicable legislation internal other and policies of over itsimplementation. d.d. (adopted in December 2011), and supervision Sava of investments capital and Group Sava the Monitoring Professional The Cooperate P Cooperate Corporate Cooperate Cooperate Liaise Establish Preparation and upgrade a central electronic system electronic central a upgrade and oenne n srtgc supervision, strategic and governance in divesting of investments of Sava d.d. and supervision over the implementati the over supervision and in managing the financial investments financial the managing in n h peaain f h srtg and strategy the of preparation the in n h peaain f development a of preparation the in of the Corporate Governing Policy of Policy Governing Corporate the of assistance in pursuing and directing and pursuing in assistance ------INTRODUCTION ANNUAL REPORT 2011 35 ------Zlatko Smrdel as director of Sava Milan Vik as director of Sava Trade Vesna Čadež as director of Sava Matej Narat, MSc, as president, and Slawomir Milosz Babka as director of Milan Marinič as senior assistant to the Denis Šmigoc and Borut Flander as di Re-appointing Appointing Appointing Re-appointing Appointing Appointing Re-appointing s.r.o., s.r.o., Prague (until the beginning of March 2015) and appointing Anja Bitenc Jenko as procurator of this company. Andrej Andoljšek, Miha Resman and Franci Straj MSc, nar, as members of the Management Board of Sava d.d. (until the end of March 2016). Management Board and director of Directorate for managing the Sava Group (until the end of Sep- tember 2015). (until the middle Spz.o., of Warsaw Fe Sava Trade director remains further Perčič Tomaž 2013); bruary of the company. GmbH, Munich Trade (until the end of April 2013), and appointing Jaka Toplak as procurator of this company. rectors of Savarus d.o.o. (until January 2013). tech d.o.o. (until the beginning of January 2015; Igor Hafnar further remains director, and Zdenka Benedičič workers’ director of the company.
• • • • • • • New appointments and other New appointments and changes in company management teams were changes and appointments following the 2011, In made in the management teams of Sava Group com panies: The Directorate is responsible for the preparation of the expert basis for Management Board’s decision- making process in connection with implementing the Direc the purpose, this For d.d. Sava of role governing torate also coordinates the activities of other profes sional services. In its weekly meetings, the Manage ment Board of Sava d.d. regularly monitors how the subsidiaries and associated companies of the Sava Group are managed. The Management Board of Sava d.d. appoints the members of Sava d.d.’s managerial structure in the management and governing bodies of experiences suitable have who companies Group Sava about the operations of a particular company. ------
In In in Direct the professional services in conformity with in system management and governance corporate the the Sava Group. ments its controlling role by making decisions of the sole partner (in the function of the assembly of a d.o.o.), and by setting out the policies for the work of supervisory board members. ard ensures their professional consulting assistan respective the of members board supervisory to ce Group Sava the with employed are who companies to as standpoints their form to able are they that so superviso for materials Agenda the of contents the ry board meetings in a more quality manner. ty stake and are neither subsidised nor associa ted, the Management Board of Sava d.d. appoints their proxy before the AGMs’ of these companies supervi these Before meeting. the in participate to sory board meetings take place, the Management Board provides their professional consulting assi stance to the members of the supervisory boards who are employed with the Sava Group. other companies, in which Sava holds its equi Bo Management the companies, associated the the subsidiaries, the Management Board imple and coordinate the activities carried out by
• • investments of Sava d.d. d.d. Sava of investments • Sava d.d. implements its governing role through super through role governing its implements d.d. Sava associated companies of the the of companies associated capital other and Group Sava com various and boards administrative boards, visory missions, as follows: Managing the subsidiaries and and subsidiaries the Managing • As a rule, a business conference of the Sava Group is busi the with deals and December, in year, a once held ing of the Sava Group, business conferences of the Sava Group, and other meetings for the needs of the Management Board of Sava d.d. As a rule, directors’ meetings are held every quarter and are intended for presentations of operations and other current issues in the Group. In 2011, the busi ness plan for the next business year. ness conference was held also in June, on occasion of which the Group’s management dealt with forecast until the end of the business year. Furthermore, the Directorate organises directors’ meet directors’ organises Directorate the Furthermore, 36 ANNUAL REPORT 2011 INTRODUCTION came effectiveintheSavaGroup: be changes following the 2012, of beginning the In • • • • • • • • • • • •
getika Črnomeljd.o.o.(untiltheendofApril2016). ka Benedečičfurtherremainsworkers’director. procurator,as Zden- Aberšek Aleš appointing and cal in Storitve d.o.o. (until the end of October 2013) dual companies. indivi mentioned previously the in procurement of ci, Terme Lendava and Terme Ptuj, and suspension TermeRaden of Zdravilišče directors 3000, cutive exe- of appointing after 2016); October of ginning be the (until Turizemd.d. Sava company merged board first of Sava Hoteli Bled d.d., and then management of the the of members as MSc, Simonič, Borut and Balažic Renata and board, nagement the company. the end of March 2016) – after the reorganisation of appointing directors of professionals services (until Peter Pavček asprocurator ofthiscompany appointing and 2015), July (until d.o.o. Srbac BH Kranj d.o.o.(untilNovember2012). Finc Ana further remainsprocuratorofthecompany. 2015), July of middle the (until d.o.o. company. the of procurator remains further Rozman of time), Marko period (undefined Zagreb d.o.o. Nova pany. com- the of director remains Rous Gorazd d.o.o., company (untilthebeginningofNovember2013). this of director as Lander R. David appointing and Corp., Port Orange (until the end of February 2015, 2016). March of end the (until d.o.o. Storitve in Medical IT d.o.o.(untilthebeginning ofJanuary2016). Appointing Re-appointing Appointing Appointing Appointing Appointing Appointing Appointing Suspension Re-appointing Re-appointing Appointing Janez Fabijan as director of Sava medi Georg Pollak, MSc, as director of Sava of director as Pollak,MSc, Georg Izidor Debenc as director of Savatech of director as Debenc Izidor nrj rbl s rsdn o te ma the of president as Prebil Andrej rmž rdšo s ietr f Sava of director as Bradeško Primož ae Rbe, s rcrtr f Sava of procurator as Roblek, Matej o Šiej s ietr f I Sava GIP of director as Švigelj Rok n Fn a pouao o Sv IP Sava of procurator as Finc Ana of procurement office in Sava d.d. and Gorazd Rous as director of IP Nova IP of director as Rous Gorazd Stanko Cvenkel as director of Ener of director as Cvenkel Stanko Stanko Cvenkel as director of Ensa of director as Cvenkel Stanko ------ness functionsinthesecompanies. busi key the in risks managing and companies Group Sava of operations of performance the monitoring focus on will Audit Internal the of activities the 2012, In Management Boardandtheauditcommittee. company’s parent the to thereafter reporting dations, recommen- of developers the or in companies teams audited management the of response the assess regularly auditors Internal implemented. been already ommendations was given, which to a great extent have rec of range a reports, inspection the In operations. tions and monitoring efficiency and performance of the management in connection with certain business func risk on focused especially inspections audit 2011, In of interest. conflict possible a avoid and independence preserve ect teams in various areas, whereby they endeavour to Internal auditors are involved as consultants in the proj the SupervisoryBoardisacquaintedwithittoo. of commission audit the and Board Management the risks. The annual plan of internal audit is confirmed by of occurrence the to as probability and operations the on impact risk the assess they Group Sava of erations op the of review comprehensive their to Owing goals. strategic of accomplishment the affect could that risks ceed from strategic policies of the Group and consider pro they plan, annual the for projects defining When internal audit. the in practice professional of standards international with accordance in strategy auditing the design and knowledge their enhance continually auditors ternal In- operations. of levels Sava all all at and in companies Group exercised be to influence its for enable approach professional its and audit internal of dence indepen- organisational The d.d. Sava of Board ment Manage the to responsible directly is it work, its For management. risk appropriate at aimed processes information implementation and as well as management evaluating and judging involves audit internal the of mission The Internal audit ------INTRODUCTION ANNUAL REPORT 2011 37 ------
Business transparency and open Business transparency communication Communication forms an important part of the corpo trust co-creates It d.d. Sava at system governance rate of stakeholders in our operations, products and ser vices, thereby significantly influencing business suc cess of the Sava Group. Corporate Communications provides professional support to the corporate com- munication of the Sava Group about the operations, management and governing, products and services, and other important aspects of our business, at which it closely cooperates with the Management Board and of teams management and services professional other subsidiaries. The goal of Sava d.d. is to establish a dialogue and ensure quality information to shareholders and other stakeholders that surpasses the minimum ments concerning the information of shareholders and require Lju the of Rules and Laws the by defined as public the and transparent a so, doing By Exchange. Stock bljana open corporate governance system in the company Sava d.d. is created jointly. The procedures and responsibilities in external report ing are defined by the Information Rules of Sava d.d. as a public listed company. The area of safeguarding business secrets and proce- dures in connection with the supervised information is coordinated as set out in the Corporate Governance Determin on Rules the by governed is area The Code. Use Internal for secrets Business Safeguarding and ing and the Organisational Rules on Internal Information. The use of the standardised central information system information central standardised the of use The SAP and other standard information solutions enhanc es the efficiency of preparation and exchange of ac counting information. In a rapidly changing and uncer attention more increasingly environment, business tain sophisticated most the of introduction the to devoted is methodologies and tools for a dynamic development and forecasting operations. of planning, monitoring The Group has established a system whereby opera on reported and basis monthly a on monitored are tions by the internal accounting department. The Manage ment Board makes the Supervisory Board acquainted with the data on an ongoing basis. - - - - -
In the Sava Group, standardised accounting policies which are detailed in the accounting regulations apply, of Group companies and updated, if required. regulations define the duties and responsibilities of in The accounting, of management centralised partially a With which is performed at individual locations for several a uniform approach companies to simultaneously, evi- dencing business events is assured together with a standardisation of procedures and the in-depth spe- cialisation of employees. The Management Board of Sava d.d. is responsible for the operation of the internal control system and su pervision of its efficiency. The intention of the internal control system of the Sava Group is to provide at rea sonable cost a firm guarantee that company or Group assets are secured, and business tasks are correctly performed and documented. The existing of structure the internal control system includes, among other things, established policies and procedures, the func- and selection the and performance audit internal of tion training of competent specialists. monitor their as well as operations accounting dividual ing and supervision. Internal controls and risk Internal controls and risk management system in management system in connection with reporting on the financial statements The business of Sava d.d. with the audit company De The financial statements of the joint been have stock subsidiaries its of company majority the and d.d. Sava audited by the auditors Deloitte Revizija d.o.o. Every approves d.d. Sava of Meeting Shareholders’ the year, of appointing the In auditor. the preparation of a pro- posal, the company considers the recommendations by the Corporate Governance Code on changing the same the of partner auditing key or auditor responsible at least every five years. auditing company External audit External section financial the in presented is d.o.o. Revizija loitte of the annual report and in the notes to the financial Group. statements of the company and the 38 ANNUAL REPORT 2011 INTRODUCTION ies, contactpersons,andotherpiecesofinformation. dar, information about the organised gathering of prox nouncements, shareholder information, financial calen- an public all to access open an provide we which of way by tools, communication main our of one sents repre www.sava.si website The operations. the about portance to the preparation of annual and other reports im much assigned have we years these all Through cation in 2011 was relatively less dynamic and intense. year,previousextreme communi the with comparison with the media in a proactive and responsive manner. In regularlyand onan ongoing basis, and communicates public interested or investors of decisions business Savad.d. releases the information that might affect the law alsointhenewspaperFinance. www.sava.si,at website the by stipulated cases in and company’s the SEOnet, system ex information stock change the in announced are Board Supervisory the by resolutions significant more all and and d.d. Sava Group the of operations the about Information the media and Announcements inSEO-net from 2007to2011 and publicity in theSEOnetsystem of publicannouncements Movement ofthenumber SAVA GROUP the SavaGroupinmedia No. ofannouncementabout Stock Exchange,SEOnet information system of the Ljubljana Sava d.d.intheelectronic No. ofannouncementsby 3000 4000 5000 6000 2000 7000 8000 100 0 45 072008 2007 4,073 ------companies. its individual elements, including the merger of Tourism strategy of Sava d.d. until 2012, and implementation of restructuring the of adoption d.d., Sava of Board ment Manage the of replacement were: 2011 in munication com designed which topics, important more the of nificantly more than the average of many years. Some sig still but 2010, of year record the in that less 23.4% by fact, in is, This releases. 5,283 reached and high still was Group Sava the about articles of number The level. 2009 and 2008 the at was an- which nouncements, 39 published d.d. Sava system, SEO-net the In presentation meetingstoo. tention to potential investors, which is why we organise at much devote We questions. their answer also analysts and and shareholders to information company disseminate We person. in or phone, the on either ing consult and information further for available are We 39 4,568 37 0921 2011 2010 2009 4,966 119 6,894 39 5,283 - - - - - INTRODUCTION ANNUAL REPORT 2011 39 - - - - -
about any holder of securities regulations on appointing and re of management board members, es Explanations about all limitations in voting rights. Company placing members of the management and su- of Articles the in changes and bodies pervisory Association. trea of purchase or issue the for those pecially sury shares. which assure special control rights. Proxies Explanation
5. 6. 3. Individual shareholders of Sava d.d. have no special control rights based on the ownership of Sava shares. 4. The shareholders of Sava d.d. have no limitations in exercising their voting rights.. ap- the govern separately not do regulations Company pointment or replacement of members in the manage ment and supervisory bodies and amendments to the ap is legislation applicable The Association. of Articles plied in full. Ljubljana (qualified stake 18.7% or 375,542 shares), Slovenska Odškodninska Družba (11.1% or d.d., 222,029 shares), Ljubljana PSL Storitve per d.d., - Ko (9.3% or 186,323 shares), Vas (8.1% Finetol or 162,389 shares), d.d., Merkur Škofja d.d. (6.7% or 134,923 shares), NFD 1, Delniški Podsklad, Ljubljana (5.0% or 100,902 shares).
------
of main characteristics of the in paragraph of Article 70 of the Com direct and indirect holdership of the of holdership indirect and direct th
Explanations in accordance Explanations in accordance with the Companies Act ternal control and risk management systems in connection with the financial reporting pro cedure. company’s securities in the sense of achieving of sense the in securities company’s regu act the by stipulated as stake, qualified a lating acquisitions. Significant Description
panies panies Act, which defines the minimum content of the corporate governance, Sava d.d. gives the following explanations: The data about achieving a qualified stake as stipu lated by the Take-overs Act is announced on an on- going basis in the electronic information system of the Securi the to furnished and Exchange, Stock Ljubljana holders the 2011, December 31 At Agency. Market ties of direct qualified stakes as stipulated by the overs Take- Act in Sava d.d. are: Kapitalska Družba d.d., 2. The internal control and risk management systems in connection with the financial reporting by Sava d.d. in- corporates the policy and procedures, which enable a true timely, and fair report about the financial position, movement of assets and liabilities and the operating result of Sava d.d. and the Sava Group. The internal control system is presented in the 2011 annual report Corporate – Chapter d.d., Sava and Group Sava the of manner. comprehensive more a in System Governance 1. Based Based on the 5 I. The corporate governance system is a tool for accomplishing long-term strategic goals and the manner in which in manner the and goals strategic long-term accomplishing for tool a is system governance corporate The the Management Board and Supervisory Board of Sava d.d. perform their responsibility towards shareholders and other stakeholders. The vision and goal of Sava d.d. and its subsidiaries are to introduce the most modern foreign and domestic advanced the all with conformity fullest the and management, and governance of principles practice. The corporate governance system at Sava d.d. provides guidelines for directing and supervising the company sets and bodies governing the among responsibilities and rights of distribution the defines It subsidiaries. its and setting, for framework a provides it Furthermore, issues. corporate on decisions making for procedures and rules achieving and pursuing the implementation of business goals and establishes the values, the principles and the highest standards of honest and responsible decision-making process and handling concerning all aspects of our operations. Corporate Governance Corporate Statement on on Statement 40 ANNUAL REPORT 2011 INTRODUCTION of the company declare that the joint stock Board Supervisory the and Board Management The ljse.si ExchangeLjubljanaStock the of website the on The entire Code text is available in Slovene and English of the Code in the variant adopted on 8 December 2009. thequotedIn period, Savad.d. followed theprovisions Sava d.d. company the and Group Sava the of system nance gover corporate the of presentation comprehensive a provides which report, annual 2011 the of part ent constitu a forms statement The 2012. February 16 to 2011 February 16 from i.e. statement, present the and former the between period the to refers Code ernance Gov- Corporate the with Conformity on Statement The Code). (hereafter Code Governance Corporate the with mity confor on statement a gives d.d. Sava company The II. Statementonconformity Corporate GovernanceSystem. Board; Supervisory the by Report Bodies; Governing pany Sava d.d. for 2011 in Chapters -Management and com the and Group Sava the of report annual the in management and supervisory bodies and their commissions is of given the of operation presentation and comprehensive composition A the on 8. Corporate GovernanceSystem.. - Chapter in 2011, year the for d.d. Sava company the and Group Sava the of report annual the in described minutely is Meeting Shareholders’ the in procedure voting The Meeting. Shareholders’ the of chairperson the by and Meeting Shareholders’ the of orders ing stand- the in out set as exercised and law by ulated stip are The Meeting Shareholders’ the once. of responsibilities met Meeting Shareholders’ the 2011, In 7. ance orpurchaseoftreasuryshares. issu the for proxy any have not did d.d. Sava 2011, In
commissions. their and bodies supervisory and management Data and itskeyresponsibilities. Operation Code with theCorporateGovernance ), and the website of Sava d.d. of com of pany Shareholders’ Meeting Shareholders’ pany (www.sava. si)
company (www. . ------
on thecompany’swebsite. posted then are statements signed Such board. supervisory a on work to know-how and training professional relevant the have they that explicitly state and not, do they if dependent or criteria the all meet they if independent themselves nounce pro they statement this In Code. this of C pendix Ap of the C.3 Section from of independence of criteria meeting their disclosing statement, cial spe- a sign board supervisory the of members All ant to the law, company regulations and the Code. pursu tasks other performs and board agement man the of work the evaluates carefully system, governance corporate the establishing in and icy - Pol Governance Corporate the up drawing in part year,financial active the an throughout takes pany com the monitors board supervisory The 8: Item due time. in committees board supervisory the to or them to available made are decisions quality make to bers mem board supervisory by needed documents ty are ensured, such notices may be e-mailed. The securi information and protection adequate vided Pro quarter. per once least at board supervisory management board provides written notices to the sessment of the company’s financial position. The as balanced board and objective an make to members supervisory enable data communicated The board. supervisory the of informing periodic its in board management the by observed be to timeframes and topics of scope the sets board supervisory the procedure, of rules its In 8.2: Item terest, respectively. in- of conflict any of existence the and independence the contents of its statement sufficiently disclosed their that estimated Board Supervisory The Code. this of C Appendix of C3 Section in quoted as independence of criteria all not but majority the include statement the of contents The handling. their at interests of conflict a to as statements their gave members Board pervisory Su the 2011, and 2010 in again and 2009 in Already wing explanationisgiven: follo the which for it, from deviates it where cases in Sava d.d. respects the provisions of the Code except ------INTRODUCTION ANNUAL REPORT 2011 41 - - - -
ment of meeting the individual requirements from re with position a take thereby They C3. Appendix to pursuant interests, of conflicts potential to spect the criteria stipulated in Appendix C3, and commit any of board supervisory the inform immediately to of interests. potential new conflicts Item 17.2: Once a year, upon (re)appointment and and (re)appointment upon year, a Once 17.2: Item upon each change, members of the supervisory board sign and provide the board with their state Already in 2009 and again in 2010 and 2011, the Su pervisory Board members gave their statements as to a conflict of interests at their handling. The contents of the statement include the majority but not all criteria of independence as quoted in Section C3 of Appendix C of this Code. The Supervisory Board estimated that their disclosed sufficiently statement its of contents the independence and the existence of any conflict of in- terest, respectively. The statement will be accessible on the website of the com the and www.ljse.si, at Exchange Stock Ljubljana pany’s website at www.sava.si as of the announce- ment date 2012 Kranj, 16 February Board Management Board and Supervisory of Sava d.d. ------The rules of procedure of the Supervisory Board Sava of d.d. define that an additional item can only be added on the agenda in agreement by all Supervisory Board members. Item 10.2: The president of the supervisory board ensures that the procedures related to prepara Provided that the members receive adequate ma Based on a special resolution, the Supervisory Board spe a with timeframes and topics of scope the defines cial order, which are observed by the Board Management in its periodic informing. The Supervisory Board adapts the scope of this resolution to the economic situation in the company and the Sava Group. The Su pervisory Board is of opinion that is not necessary to define the scope and timeframes in the rules of proce the resolution. dure instead of in tory work, consultations, adopting of resolutions and decision taking are precisely adhered to. The agenda for a supervisory board meeting consists of items to be discussed agenda at also specifies the whether an meeting. item The and cor responding materials are of an informative nature adopted be to are decisions actual whether or only on their basis (adopted report, consent or autho board, etc). rization granted to the management terials and have sufficient time to prepare, the su pervisory board may add additional items to the vote. agenda on the spot, by a simple majority 42 ANNUAL REPORT 2011 INTRODUCTION management. risk of effectiveness and measures policies, the tors ad moni- company parent the while risks, manage vance, in defined are who teams), (management units organisational The d.d. Sava company parent the by provided policy the of basis the on autonomously ies Strategic risks: successful performance inindividualcompaniesanddivisions. encouraged and investments managed actively We division. Finance Investment the with tion connec in risks by affected mostly was business Our 2011. in changed risks individual of importance The 9.2. operat financial, strategic, groups: larger four in sified clas- are Risks group. individual by evaluated suitably and classified are risks that assure we so, doing By subsidiaries. of departments competent the with tion collabora- in company parent the of level the at oped devel centrally is methodology management risk The risk management. employees in their activity, which assures most efficient of circle broadest the involves company individual ery ev in process management risk company.The vidual indi- every of teams management of competence the within falls risks individual managing for responsibility the while d.d. Sava company parent the of level the at out carried is management risk of organisation The their effectiveincorporationinday-to-day business. conse- their quences, as well as identify business eliminate opportunities and or mitigate which of preparation measures, and hazards of detection early an is Group Sava the in management risk active of goal The 9.1. negative impactsonouroperations. ginated from lower values of financial assets and poorer access to loans. By acting in time, we try to minimise attention was devoted to risk management in connection with the operation of Investment Finance, which ori- economy.domestic our the of in deal crisis great the A of result a as operations our on impacts negative the year,half economy intheZonefirst Euro at minimising wecontinuedtocarryouttheactivitiesthataim ronment, identification of risks as they appear, and timely measures. Despite certain signs of a recovery of the We responded to the aggravated circumstances of 2011 by pursuing the development of the economic envi
More importantrisksin2011 dology ofriskm Goal, organisationandmetho- These were managed by the subsidiar anagement 9 9
------
Risk management ment Standard)andincludesthefollowingphases: international standard IRM (International Risk Manage the on based is methodology management risk The in connectionwithaparticularrisk. measures appropriate of introduction timely as well as increases hazard particular a of impact any that case the in response timely a facilitates methodology The also whethertheyrepresentanopportunityorhazard. on the entire Group or only its individual company, and effect their to regard with down broken further be can ing, • • • • • • actively supervising the operations of companies, in companies, of operations the supervising actively and portfolio investment the diversifying by minimised were Risks d.d. Sava company parent the of assets financial of structure the changed assets financial of value the in decrease A environment. economic tain uncer highly and position economic poor a of a result as investments financial in fluctuations price high with denoted was 2011 year The strategy. velopment and, consequently, economics they affect the implementation of the de investment planned with the associated are achieving they since Group, Sava the of Investment risks Investment
risks and adapt measures with regard to regard with measures adapt and risks damage business limiting for measures the changedcircumstances. and maximisingbenefits,respectively. Monitor Prepare Evaluate andclassifyrisks. Estimate theanticipatedconsequencesofrisks. Assess opportunitiesandhazards. Identify thereasonforrisk. and unpredictable. Within these four groups, they groups, four these Within unpredictable. and
belong among belong most important risks important most - - - - INTRODUCTION ANNUAL REPORT 2011 43 - - - - , , we carefully Low Moderate High High High Exposure High Exposure High
risks in connection with fluctuations in in in fluctuations with connection in risks Risk management method Diversification of financial assets Standardised business policy, quality reports and suitable controls Monitoring financial markets and management by using suitable financial instruments Monitoring financial markets and changes in interest rates Limit maximum exposure to customers, active management through receivables, calculating ratings Previously agreed credit lines and planned requirements for liquid assets Agreements with business banks about reprogramming finance sources to improve the maturity structure of finance sources Risk management method terest terest rates and foreign exchange rates pursue the situation in the money markets and study various scenarios for hedging against these Sava the fluctua situation present the in that estimate We tions. Group is not strongly exposed to interest rate and for risk. exchange eign structure of finance sources, decrease the volume of financial liabilities and strengthen the cash flow of the Group. Introducing these activities, we substantially minimise risks, which in the given economic circum- stances are dealt with particularly carefully. decrease To mation of new sources for a dividend pay-out to Sava shareholders. We minimise risks in connection with the - implementa defined clearly a of way by strategy development of tion a continual examination strategy, of its implementation en economic changing rapidly of circumstances the in vironment. - - - -
with sol- increased as the majority of Possible loss due to unfavourable Possible foreign exchange Possible loss due to changed Possible interest rate Risks of non-payment by borrowers servicing operating and financial liabilities Shortage in money assets for Loans are not extended Risk description Risk description losses and decreases in Possible the value of assets due to decreased stock exchange rates Risks in connection with the development of business strategy
in 2011, much attention was devoted Foreign exchange Foreign risk Risk of changed interest rate Credit risk Solvency risk (liquidity risk) Refinancing risk Risk area Risk area Investment risks Implementation of risk strategy Slovene companies have a limited access to additional to access limited a have companies Slovene funding. banks Simultaneously, tightened the - require ments for renewing the existing loans and collaterals. restruc- a has Group Sava the of strategy renewed The turing model defined, which will improve the maturity nancing finance sources In such circumstances, risks in connection Financial risks: the in circumstances the to due since risks, financial to obtain for conditions the markets, money and financial ing funds deteriorated significantly. vency, credits risks and risk in connection with refi Financial risks When the new Management Board began its work in 2011, the Sava Group revised its business strategy, which is based on restructuring and Group’s improving performance; the accordingly, this will reflect in a higher value of assets, share price growth and for tinually examine investment opportunities and have a divesting plan outlined for certain investments to as- sure a suitable solvency. Strategic risks which Sava d.d. holds a significant interest. We con
management management Risk Risk 44 ANNUAL REPORT 2011 INTRODUCTION Operating risks operation breakdown. an to due income in loss possible a against operation our ensure also We function. capacities production of which include regular maintenance and measurements procedures, suitable through decreased are pacities risks associated with the availability of production ca In circumstances of growth and increased demand the ficiently adapttoanychanges. ef and quickly to us enables which technologies, and monitor supply markets and make use of modern tools liability.Weproduct suitable offer and suppliers our of range the expand continually We suppliers. major with partnerships long-term establishing and services, and ments as regards the quality of raw materials, require materials strict demand, of standardisation channels, contractors and suppliers of reliability the with associated Risks substance they mostly relate to a particular type of risk. their of terms in as companies individual of level the at managed are They operations. daily their in risk of Operating risks: Sava Group companies face this kind Risk area contractors’ reliability Suppliers and capacities of production Availability Employees and safety Occupational health Information sources Assets security protection Environmental compliance risks Legislation and
r mngd y sn uiom supply uniform using by managed are
Risk description non-competitive prices Possible disruptioninsupplies, failures orbreakdowns Unplanned standstills,production nel shortage inhighly-trained person Risks oflosingkeypersonneland Work-related accidents orinjuries due toITfailures Disruptions inbusinessprocesses Alienation ordestructionofassets ing impactsontheenvironment Extraordinary eventswithdamag pretation Changes inlegislationoritsinter ------Risk managementmethod cooperation withasupplier measures inthecaseofunsuitable suppliers andintroducesuitable Analyse risksassociatedwithindividual measurements regular preventivemaintenanceand Insurance againstoperationstandstill, organisational climatemeasurement development, ongoingeducation, remuneration system,personnel Systematic workwiththekeypersonnel, system computer-assisted riskassessment Verifying technologyprocedures, of disruptions pated measuresforelimination Independent safetycheck-ups andantici plan Produced hazardestimatesandsecurity as specifiedforextraordinaryevents Preventive drillsandinternalprocedures Observance oflegislationand consulting are beingselectivelyintroduced. abroad from cases practice Good functions. business between flow information the improved and efficiency enhanced organisation, work improved we d.o.o, IT management via the newly established company Sava processes are stable, reliable and secure. business In the central that sure make we way, this In equipment. ually improving and upgrading of software and security contin- by decreased associated withtheITare Risks employee on health. factors psycho-active of impacts the with associated risks of management and prevention to attention special devoted have we Recently culture. safety the bettering at aimed actions preventive ing introduc and conditions working in improvements by risks safety and health Occupational terprise certificate. En Family-Friendly the under measures the out carry we and training, and education for striving continually personnel and increase their level of motivation. We are of availability suitable assure which measures of way by decreased are employees with associated Risks
- Exposure Moderate Moderate Moderate Moderate Moderate Low Low Low are decreased are - - INTRODUCTION ANNUAL REPORT 2011 45 . - - - - Exposure Moderate Moderate Low -
Unemployment The expected price rises in energy products Owing to the uncertain political circumstances the prices of the key energy products are expected to all of costs operating the affect will that and up, go Sava Group companies. Shortage in investment capital The financial crisis and a new manner of arrang ing the international financial relations reflect in a shortage in investment capital. This can influence strat long-term renewed the of implementation the egy of the Sava Group, which is based on disin- vestments and Group’s restructuring. - interna the to Due recovers. economy the which at tional political circumstances the economic recov ery will slow down in the future, which will result in employment. and investments trading, in decline a In 2012, we expect that employment will adapt further to the lower level of the economic activity. A higher unemployment rate can be seen as which an divisions, Group Sava certain for opportunity and educational the to services their adapt to have ages structure of employees.
• • • General General insurances of the Sava Group are arranged with the insurance-brokerage company Priori Zava rovanja rovanja d.o.o. The assets and liabilities of companies d.d., Triglav Zavarovalnica insurers the with insured are Adriatic Slovenica d.d. and Generali SID- d.d. insurer the with insured are receivables our In cases, special d.d. Zavarovalnica Kreditna Prva Systematic hazard assessment of Systematic hazard assessment facilities, measures in line with fire safety studies and taking out insurances Insurance against civil, producer’s and product liability environmental liability, Insurance of labour costs, depreciation, other operating costs and profit from opera for tions, organisational-technical measures minimising consequences from a breakdown Risk management method - - - - -
These These risks cannot Risk for damages on assets Risk for damages on due to natural forces and other accidents Claims for damages due to loss events by the company’s operation, caused unintentionally or randomly Financial loss due to a production standstill or damages on the assets Risk description
- Anticipated risks at the global level and their Anticipated risks at the of the Sava Group impact on the operation
According to the forecast, the economy of the EU Unstable international political situation The uncertain political situation affects the speed Debt crisis in the Euro Zone should mark the stagnation, while the Euro Zone will face a mild recession. entire the of stability economic the endanger might The weak economy Euro Zone and expand to other EU countries too. The main factors in the forecast are uncertainty in (Greece, securities debt government of markets the the and companies of part the on trust fragile Italy), general public, high unemployment rate, and the need for a financial consolidation of public finance in most of the EU countries.
Damage on assets Claims for dam ages and law suits Financial loss due to a breakdown Risk area 9.3. ations. ations. These types of risks are insured with insurance companies. Through a centralised and joint appear ance we can effect more favourable terms and con ditions, thereby contributing to better results of Sava Group companies. We have a uniform policy defined, divisions. individual to adapted is however, which, Unpredictable risks Unpredictable Unpredictable risks (insurances): oper the on impact great a have can but predicted, be be mostly affected by: • • In the future, the operations of the Sava Group will The operations of Sava Group companies strongly de pend on the global situation, which is why we regu- larly pursue all global economic, financial, technology, environmental and political movements and, as they can indirectly or directly affect our operations, we con business long-term our of preparation the in them sider plans and strategies. 46 ANNUAL REPORT 2011 INTRODUCTION s hw i te aac set s vial fr sale. for available as sheet balance the in shown is investment this sale actual the until because d.o.o., IP Sava of liabilities loan of separation balance the from results entirely it and division, Estate Real the of part a selling with connection in d.d. of Sava of divesting investments planned the to due was decrease This it decreasedby€15million. amounted to €366 million and in comparison with 2010 At the end of 2011, the indebtedness of the Sava Group Structure ofraisedfunds in companies other while needs, re own its loan for of sources borrower direct a as appears d.d. Sava cial soundnessinallSavaGroupcompanies. finan- and liquidity of preservation at aimed cohesion Corporate Finance is to achieve high levels of financial of mission The Finance. Corporate of service fessional pro the by coordinated and Savad.d., company ent agement are conducted centrally at the level of the par man financial in strategies and policy business The relations withbanks. of regulation and liabilities financial of settlement liquidity,regular to attention its directed and area, finance in concerted act to continued Group Sava the unfavourable, were circumstances economic the Though es. liabiliti financial and disinvestments of reprogramming the forms part important whose devised was Group the loan exposure remained at the level from before the crisis. A new long-term business strategy of the Sava while decreased, significantly Group Sava the of investments of value market the situation, economic neral ge the of result a As 2011. in continued circumstances economic uncertain and crisis financial severe The (%) at 31/12 from 2007to2011 Structure ofraisedloans SAVA GROUP Banks Other 10 100 10 20 40 60 80 0 93.01 6.99 0720 0921 2011 2010 2009 2008 2007 - - - - management Financial of hiredloansdidnotsignificantlychange. sources. If re compared to the loan previous year, total the structure in share 13% a had entities other from in total indebtedness, while the share of loans obtained share 87% an had resources loan 2011, of end the At would amountto€383million. and higher million €2.4 by actually been have would Group Sava the of indebtedness event, this Excluding ing linesofcreditareinplace. us for manners the and surpluses cash free of ancing bal internal banks, towards obligations financial other and business implementing of policy uniform a more, Further Group. Sava entire the for harmonised and The manners and types of insurances are agreed upon ordinated bytheparentcompany. co were that terms loan and consent preliminary a on based account own their on debts contract Group the 93.28 6.72 87.30 12.70
98 87.33 89.80 02 12.67 10.20 ------INTRODUCTION ANNUAL REPORT 2011 47 - - 43.98 82.91 56.02 17.09 61.44 38.56 48.64 51.36 interest rate. Despite these changes, the majority of banks in Slovenia did not modify the fixed interest rate or risk margin. The exclusion of loan liabilities of Sava IP d.o.o. (due to the planned divesting of investments of Sava d.d. – disposing a part of Real Estate) had no significant impact on the interest rate structure of Sava Group’s loan portfolio. the end of 2011. Accordingly, the short-term loan re sources increased and amounted to €303 million at the at million €303 to amounted and increased sources end of 2011. The exclusion of loan liabilities of Sava IP d.o.o., due to the planned sale of a part of the Real of indebtedness loan of structure Estate the affected nificantly sig maturity. the Sava Group by - - 2007 2008 2009 2010 2011 49.49 50.51 0 80 60 40 20 100 Short-term loans Short-term Long-term loans and other resources SAVA GROUP SAVA Structure of loan indebtedness by maturity from 2007 to 2011 at 31/12 (%) Structure of loan indebtedness by maturity by maturity of loan indebtedness Structure The changes in the key interest rate European influenced interbank the interest rate (EURIBOR), which changed in proportion to the movement of the key utive steps by 25 basis points each (November and December). Interest rate structure of a loan portfolio Interest rate structure of a loan At the beginning of 2011, the European Central Bank points basis 25 by rate interest key the increased (ECB) consec two in it decreased it then and July), and (April nificantly in 2011, mainly on account of the upcoming 2012. of end the at loan bank syndicated the of maturity a had resource this structure, indebtedness loan the In 35% share of total loan resources. In comparison with the previous year, the share of long-term loans went down by 39 percentage points to reach €63 million at The maturity structure of loan resources changed sig
Financial Financial management management 48 ANNUAL REPORT 2011 INTRODUCTION banks, whichsofarhavenotbeeninsured. the and companies Group Sava between loans those insure to 2011 of end the at began procedures Certain nated SA02. desig- bonds the for insurance as placed were total in d.d. Banka Gorenjska of shares 23,924 2011, of end the At GBKR. as designated Kranj d.d., Banka njska Gore issuer the of shares 2,392 further with insured are bonds the SA02; designated bonds of insurance additional an provided d.d. Sava June, of end the At ness stakesheldbytheparentcompanySavad.d. busi and securities various pledging and companies, Group’s of properties the on mortgages placing with insured are obtained Group Sava the that loans The interest ratefromtheendof2010. the to regard with change significantly not did portfolio At the end of 2011, the interest rate structure of the loan From 2007to2011,OtherincludesTOM,fixedinterestrate,EBRD existing loans The projectofreprogrammingandinsuring (%) from 2007to2011at31/12 a loanportfoliowithbonds Interest ratestructureof SAVA GROUP Other EURIBOR LIBOR 100 20 40 60 80 0 9.20 88.84 0720 0921 2011 2010 2009 2008 2007 1.96 - - 2.10 level. decrease the value of debts to a long-term sustainable and Group, Sava entire the of resources of maturity and structure suitable a assure will we re- programming, financial set the of implementation the to Owing basis. on-going an on liabilities of settlement and ity their realisation will result in improved short-term liquid progress; in are activities individual or investments al individu of disposal with connection in activities Sales reprogramming of financial restructuring and divesting. the in out set activities the implementing and with ing supported by the banks creditors, we are and actively deal consultants financial foreign of assistance With mined costrationalisationin2012. mance, strengthening the cash flow, perfor and a more deter in improvement operations, of consolidation the to activities its focused Group Sava the strategy, business long-term renewed the with accordance In significantly. change not did it 2010 of end the with comparison in and portfolio, loan total of 41% represented rate terest in fixed the at loans of share the 2011, of end the At 88.51 9.39 , NLBPRIMEandIRBRS. 2.10 49.5249.17 0.00 58.72 41.28 0.00 59.17 40.83 ------INTRODUCTION ANNUAL REPORT 2011 49 ------Financial position of subsidiaries Sava Group companies plan to operate successfully the in activities operating from flow cash generate and amount of €26.7 million, and that will assure an opti mum liquidity of subsidiaries throughout the The year. generated cash flow will be used for a regular servic ing of total liabilities and also for make investments in business development. At the end of 2011, Sava d.d. had loans of €277 mil lion, which in accordance with the strategy and the re structuring proposal will be reduced by €29.5 million in 2012. Under the indebtedness plan, Sava d.d. will repay and banks, to million €20.0 of amount an off pay loans to Group’s companies and other companies in de will indebtedness net The million. €8 of amount the in 2012. crease by €25.7 million Simultaneously with the procedures for a disposal of the real estate operations and the activities for a tie-up between Abanka Vipa and Gorenjska Banka, dispos als of other investments are in progress, which all aim at improving the short-term liquidity in order to assure smooth operations and an on-going settlement of li abilities by Sava d.d. Sava strategy business long-term new the adopting By re- financial and business a perform to itself committed structuring of the entire Group. The umbrella strategy document provides a basis for the already implement ed bilateral balancing of loan relationships with banks during the the moratorium on principal repayment until the time of signing a long-term reprogramming of loan liabilities. By signing the reprogramming agree- ment, Sava will arrange the structure and maturity of resources over a long-term period both in the parent company and subsidiaries; furthermore, it commitment made to the banks a for a timed divesting of in vestments and achieving a long-term sustainable level of debts. ------At the beginning of a December, new umbrella docu In the meeting with all lending banks at the end of May, May, of end the at banks lending all with meeting the In a moratorium - a postponement of principal - for all loans was agreed upon. Under the moratorium Sava committed itself to regularly settle interests, carry out measures for business stabilisation, perform activities for strengthening the cash flow in subsidiaries, ratio- nalise costs and carry out other measures that aim at enhancing the operating profit. ties in connection with selling individual investments or investments individual selling with connection in ties for preparations the with as well as divisions, individual producing a new long-term business strategy adapted to the business and financial restructuring of the Sava Group. ment of a long-term business strategy of Group was presented, the which puts divesting Sava of invest ments and financial restructuring at the forefront. This should serve as a basis for an agreement on a long- term reprogramming of loans and within a deadline. It has been agreed their that a postpone repayment ment of principal is extended until the contract on re programming of total loan liabilities of the Sava Group is signed, the coordination group of banks planned financial documents formed, submitted, and steps for made. are Group Sava the of loans the reprogramming We expect that by way of signing a contract on repro gramming of long-term loans the activities will be ef ficiently finalised in 2012. In 2011, the uncertain circumstances in the financial markets continued and caused the stock exchange prices to drop, while banks tightened policies. their We therefore liquidity devoted our greatest attention to assuring liquidity of the regular company, servicing of financial liabilities and regulation the relations with banks and creditors. Parallel with that, the activities were carried out to stabilise the operations, strengthen the cash flow in subsidiaries and rationalise costs in a more determined We manner. began with the activi Financial position of the Sava of the Sava position Financial Group 50 ANNUAL REPORT 2011 BUSINESS 2011 REPORT ANNUAL ANALYSIS
51 52 ANNUAL REPORT 2011 BUSINESS REPORT Kranj, 27March2012 Member oftheManagementBoard Franci Strajnar, MSc Member oftheManagementBoard Andrej Andoljšek Member oftheManagementBoard Miha Resman CONFIRM withoursignatures. we which report, annual the with agree We 2011. for Group Sava the and d.d. Sava of report annual entire the contents of the components in the annual report of Sava d.d. and the Sava Group for 2011, and thus the with acquainted made been have d.d., Sava of Board Management the of Members and President the We,
1
and theSavaGroupfor2011 its componentsforSavad.d. Signing theannualreportand
President oftheManagementBoard Matej Narat,MSc
BUSINESS REPORT ANNUAL REPORT 2011 53 - 150 125 100 75 50 25 0 Turnover (€ in thousands) Turnover listed in the Ljubljana Stock Exchange decreased to only €4.9 billion, which was the lowest figure since the outbreak of the financial-economic crisis. In 2011, the Sava share price was appraised by a certi- a by appraised was price share Sava the 2011, In fied company evaluator; the appraised value is much of 2011. higher that its market price at the end - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Price(€) 0 75 50 25 150 125 100 The Sava share and ownership struc ownership and share Sava The ture with the calendar of significant significant of calendar the with ture 2012 in d.d. Sava by announcements 2 Turnover Sava Turnover Price Sava SAVA d.d. SAVA Movement of the Sava share price in 2011 Market capitalisation At the end of 2011, market capitalisation amounted to €24.1 million, and was lower than at the end of 2010 (€179.6 million). The market capitalisation of all shares Source: Thomson Reuters Datastream The value of the Sava share moved in the range be tween the highest point of €95 and the lowest point of €12. The main reason for low share prices was industrial domestic the in movements negative general the sector and poor liquidity of the Slovene capital market, which in 2011 declined by further 5%. Movement of the Sava share value Movement of In 2011, the value of the Sava share moved between €12 and €95. At end of 2011, the average price per share share per price average the 2011, of end At €95. and €12 between moved share Sava the of value the 2011, In Sava the of movement The 2010. of end the with comparison in 86.6% by fell it that meaning €12, to amounted Exchange. Stock Ljubljana the of liquidity poor and markets capital the in situation general the mirrors share 54 ANNUAL REPORT 2011 BUSINESS REPORT 10 largestshareholdersat31/12/2011 by decreased shareholders foreign of stock the year, previous the of end the with comparison In 3.7%. ers sharehold- foreign of that and 96.3% to joint amounted ers sharehold- public domestic of Slovene stock The companies. larger stock the the among ranks which company registry, share Sava the reg- in were istered shareholders 14,490 2011, of end the At Ownership structure sava.si/Shareholder Relations.html. The mostrecentinformationon theownershipstructureofSavad.d.isavailableon homepageat Kapitalska družbad.d. 10 largestshareholders Slovenska odškodninskadružbad.d. PSL storitved.d. FINETOL d.d. Merkur d.d. NFD 1delniškiinvesticijskiskladd.d. Other shareholders Sava d.d.(treasuryshares) Total 10largestshareholders UniCredit BankaSlovenijad.d. Forticap Ltd. Gorenjska Bankad.d.,Kranj NFD Holdingd.d. TOTAL (%) at 31/12/2011 by category Ownership structure SAVA d.d. Households Legal entities 14.6% 85.4%
69.7% oftotalcapitalthecompany. hold shareholders ten largest The 14.6%. households and 85.4% represented entities legal of proportion The ed StatesofAmericaandGermany. Unit the Austria, Britain, Great from originated holders share foreign of majority The points. percentage 0.4% % ownership 100.0% 69.7% 18.7% 11.1% 28.8% 9.3% 8.1% 6.7% 5.0% 1.5% 1.7% 2.0% 2.8% 4.3% Foreign shareholders Domestic shareholders 3.7% 96.3%
No. ofshares 1,399,373 2,006,987 375,542 222,029 186,323 162,389 134,923 100,902 577,073 30,541 34,375 39,500 56,475 86,915 - - BUSINESS REPORT ANNUAL REPORT 2011 55
------0.002% 0.000% 0.004% 0.006% 0.006% 0.012% 0.006% 0.018% 31/12/2011 31/12/2011 % ownership % ownership 3 36 86 117 129 246 125 371 (717) (706) (1,140) 31/12/2011 31/12/2011 No of shares at No of shares at - 0.057% 0.036% 0.002% 0.035% 0.004% 0.000% 0.000% 0.128% 0.006% 0.134% 31/12/2010 31/12/2010 % ownership % ownership
. - - 36 86 (3) 717 706 122 T Matej Miha Bohorič) and Members (Emil Vizovišek, Vinko Per Sava d.d., became the owner of 129 Sava shares in August . Gregor Rovanšek, who took up the Workers’ Council representative in the Supervisory position of Board on 31 March 2011, owns 3 shares. čič), who own 2,563 shares in total. nagement Board President of Sava d.d. on 31 Mar 31 on d.d. Sava of President Board nagement June. ch 2011 and acquired 117 shares in 1,140 2,563 2,685
ermination of appointment for Chairman (Janez Narat, MSc, who took up the position of Ma Resman, Management Board Member of
Members of the Management Board and Board of the Management Members who own Sava shares Supervisory Board At the end of December 2011, the members Management of Board the and Supervisory Board of Sava d.d. held 371 Sava shares, or a 0.018% share of total company capital. In comparison with the end of 2010 by 2,314 shares and was due: the balance decreased • • • • 31/12/2010 31/12/2010 No of shares at No of shares at Member Member Member Member Position Chairman Position President Member Chairman
Their ship by Sava d.d.’s Management Board members at the end of the year previously not included in the ownerships by Supervisory Board’s members.
TOTAL Emil Vizovišek* Gregor Rovanšek** TOTAL TOTAL MANAGEMENT BOARD AND AND BOARD MANAGEMENT TOTAL MEMBERS BOARD SUPERVISORY Vinko Perčič* Janko Kastelic Supervisory Board members Miran Kalčič Members of the Management Board Matej Narat, MSc Miha Resman Janez Bohorič*
** He took up the position of the Supervisory Board member on 31 March 2011, which is why his ownership stake was
Members of the Management Board and Supervisory Board who own Sava shares Members of the Management Board and Supervisory Board who own * chairman and member functions expired in 2011, which is why their ownership stakes are not included in the owner Members of the Management Board and Supervisory Board who own Sava shares Members of the Management Board Trading with treasury shares with Trading that public the informed d.d. Sava 2010, August 19 On in accordance with the provisions of Article 247 of the the Companies second Act-1, and eighth indent of the first paragraph, it would start to repurchase treasury shares in the regulated market of the Ljubljana Stock Exchange. In the period from the announced intention until the end of December 2010, it acquired treasury shares in 27,252 total amount of €4,753 thousand. In 2011, the company did not purchase treasury shares so that at 31/12/2011 it held 30,541 treasury shares in the value of €4,977 thousand – valued at the average acquisition cost; this represents 1.52% of total shares. Act-1, Companies the of 247 Article with accordance In Group Sava the of associates the offered company the re- for shares treasury Sava 30,541 of quantity total the purchasing in July 2011. Company securities Company 56 ANNUAL REPORT 2011 BUSINESS REPORT • • • • • • • • Explanations forthecomputationofkeydataSavashare: Key dataontheSavashare Price-to-Book ratio(P/Bratio) -atperiodend -lowest -lowest Average dailyliquidity -atperiodend Market capitalisation at period end Dividend pershare Net earningspershare No. ofsharesatperiodend Average daily trading with shares - dividendyield -highest Share price -highest Price-Earnings ratio(P/Eratio) Share bookvalue Share yield Share ofdividendinnetprofit - capitalyield Total amountofdividendspaid
Price-to-Book ratio (P/B): (P/E): ratio Price-Earnings capitalisation: yield: yield: share: Sava per earnings price inthecalendaryear)dividedwithearningspershare. the endofyear. share marketpriceatthebeginningofyear. The The Market Capital Dividend Share ofdividendsinnetprofit: Net ted averagenumberofordinarysharesexcludingtreasuryshares. weigh the with divided interest minority without Group Sava the of equity the share: Sava the of value Book the year. ber ofordinarysharesexcludingtreasury relative change in the market price of the Sava share at the end of the year with regard to the to regard with year the of end the at share Sava the of price market the in change relative dividend per share divided with the Sava share market price on the last trading day of the year. multiple of the number of Sava shares and the market price of the share on last day of the net profit belonging to Sava d.d. divided with the weighted average num average weighted the with divided d.d. Sava to belonging profit net the share market price on last day of the year divided with the share book value at share market price on last day of the year (or the highest and lowest market lowest and highest the (or year the of day last on price market share dividend persharedividedwithnetearnings (€ inthousands) (No. ofshares) (No. ofshares) (€ inmillions) (€ inmillions) (%) (%) (%) (%) (%) (€) (€) (€) (€) (€) (€) 2,006,987 1,211.6 201.3 161.1 270.9 100.4 113.2 160.6 603.7 223.4 681.1 2007 46.5 37.1 501 291 5.6 2.8 6.0 0.5 2,006,987 131.4 101.4 239.7 508.2 110.9 273.5 253.2 223.0 624.1 -56.9 2008 -58.1 97.7 259 143 6.0 3.0 2.3 1.2 2,006,987 236.2 481.9 240.1 192.0 258.5 2009 13.7 22.7 41.8 17.6 14.1 18.9 -3.9 -5.2 180 137 6.2 3.1 1.3 2,006,987 161.1 179.6 250.0 -50.0 -59.2 2010 -62.7 58.2 89.5 88.0 -6.4 -1.8 -1.8 -5.0 308 6.4 3.2 3.6 56 2,006,987 -78.7 -86.6 2011 -86.6 82.2 24.1 95.0 12.0 12.0 -0.2 -0.2 -1.2 133 5.9 15 ------BUSINESS REPORT ANNUAL REPORT 2011 57 - SAV Code of issuer In In In In In In In 21.77% equity stake, whereas Maksima Invest had Invest Maksima whereas stake, 21.77% equity a 1.70% equity stake in Sava d.d. stake, whereas Merkur had an 6.72% equity stake in Sava d.d. stake equity 0.02% a had Daimond whereas stake, in Sava d.d. equity stake, whereas NFD Holding d.d. 4.33% equity stake in Sava d.d. had a whereas Abanka Vipa had a 0.22% equity stake in Sava d.d. d.d., it had a 23.35% equity stake, whereas NFD 1 had a 5.03% equity stake in Sava d.d. ke, whereas Gorenjska Banka had a 2.81% equity stake in Sava d.d. the company Merkur d.d. it had a 8.20% equity equity 7.59% a had it d.d. Daimond company the the company NFD Holding d.d. it had a 24.65% sta equity 45.90% a had it d.d. Banka Gorenjska Abanka Vipa d.d. it had a 23.83% equity stake, the company NFD 1 Delniški Investicijski Sklad the company Maksima Invest d.d. it had a
SI0031108457 SAVA Share name Share name Cross-links with other companies Cross-links • • • Approved capital and conditional increase in share capital The Articles of Association of Sava d.d. do not include any provisions in this regard. According to the criteria of the Corporate Governance Code, at the end of the year 2011 Sava was of the following ownership links: linked on the basis cross- • • • • - - - - - F F all securities listed on the Ljubljana Stock Exchan issuer’s the in conditions changed as such d.d. ge business, changes in tax legislation and regulati- ons relating to the securities market and force ma jeure. nected with the operation of each individual com- pany (investment, interest, solvency and foreign currency risk). actors of non-systematic that risk-taking are con actors of systematic risk-taking characteristic for
ISIN- international security designation ISIN- international security Ljubljanska borza Stock Exchange Stock Exchange • • Such risks are due to: Risks associated with the invest Risks associated with the ment in the Sava share Share book value Share book The book value of the amounted to €82,2. When calculating Sava the book value, share at 31/12/2011 to the from deducted is shares treasury of number the Additional data on the Sava share data on the Sava Additional tal number of shares. 58 ANNUAL REPORT 2011 BUSINESS REPORT Tel: +38642065819 e-mail: [email protected] Corporate Communications Lidija Bregar, Director Corporate Communications Tel: +38642065690 e-mail: [email protected] Corporate Finance Aleš Aberršek,AssistantDirector Investor Relations Contact persons newspaper Finance. at website ( SEOnet e-system the via Exchange Stock Ljubljana the of website the on published are information price-sensitive other and announcements Periodical announcements bySavad.d.in2012 Calendar ofmoresignificant 18 and Savad.d.fortheperiodJanuary-March 2012 Business reportandunauditedfinancialstatementsoftheSavaGroup Business PlanoftheSavaGroupandd.d.for2013 Sava d.d.fortheperiodJanuary-September 2012 Business reportandunauditedfinancialstatementsoftheSavaGroup Sava d.d.fortheperiodJanuary-June 2012 Business reportandunauditedfinancialstatementsoftheSavaGroup Resolutions ofthe18 Te ttd ae ae hs pand n my e hne drn te er Sol te lne announce (www.sava.si). planned website company’s the the Should on year. course the due during in changed notified be be will may this and changed, planned be events those and are mentdates dates stated The * Call forthe18 Statement onConformitywiththeCorporateGovernanceCodeforSlovenia Audited annualreportoftheSavaGroupandd.d.for2011 TYPE OFANNOUNCEMENT/EVENT th regularShareholders’MeetingofSavad.d. , and in cases stipulated by the company’s Articles of Association statute also in the in also statute Association of Articles company’s the by stipulated cases in and www.sava.si, th regularShareholders’MeetingofSavad.d. th regularSupervisoryBoardMeetingoftheSavad.d. ). Access to information is also provided on the company the on provided also is www.ljse.siinformation to Access ). • • is available: Further informationforshareholders Tel: +38642065518 e-mail: [email protected] Corporate Finance Karmen Mežnar, Analyst Information onDividendPayments
e-mail: [email protected] on thecompany’swebsite:www
Thursday, 24May2012 Monday, 23April2012 ANNOUNCEMENT/ EVENT* (anticipated)DATE OF or Friday, 25May2012 Thursday, 24May2012, Friday, 21December2012 Friday, 23November2012 Friday, 24August2012 Thursday, 24May2012 Friday, 20April2012 Friday, 20April2012 .sava.si
- BUSINESS REPORT ANNUAL REPORT 2011 59 ------
The siness, which are otherwise characteristic of strongly diversified business systems. all difficulties in terms oforganisation bu and
• In preparing the restructuring strategy the Management the strategy restructuring the preparing In Board and Supervisory Board of Sava d.d. considered the proposals and analyses prepared by the interna tional consulting firm EquityGate. The strategy takes into account the interests of all stakeholder groups: Sava and its employees, banks creditors, sharehold ers and potential new investors. 2011, September 27 on held meeting regular 28th its In the Supervisory Board of Sava d.d. unanimously mo tioned the produced strategy and gave its full support to the Management Board in implementing the strat egy. The Management Board of Sava d.d. expects to re ceive the support from the banks - creditors of Sava d.d., too. For this purpose, it presented the banks the restructuring plan for financial liabilities, been prepared on the basis which of the strategy and which has favours the goals set out The in activities the strategy. for making an agreement are in progress. Restructuring strategy strategy Restructuring 2014 until of Sava ------3 GOAL OF THE STRATEGY OF BUSINESS-FINANCIAL GOAL OF THE STRATEGY D.D. GROUP AND SAVA RESTRUCTURING OF THE SAVA . • business performance. improving For • the assets of the company and the growth in the value of the Sava share. increasing For • the profit. enhancing For • to Sava shareholders. new sources for a dividend pay-out forming For Establish De Improve the balance sheet structure Create Cr after restructuring will continue to develop as part of it. conditions: vestments resulting from a drop in price of securiti of price in drop a from resulting vestments es in the past few years. reasing financial liabilities. present the of development the in investments ded Sava's operations. The A The adequatelevelofGroup’sindebtedness. crease thevolumeandachievean a sufficient cash flow for making investments in the development of those Sava’s operations, which inthevalueofSava. eate thebasisforamorestablebusinessandanincrease and dec cash flow for strengtheningthe need nee the making for sources financial in shortage effects of significant impairments of Sava's in
• • • A clearly defined business restructuring model of Sava and its implementation in the upcoming years will: years upcoming the in implementation its and Sava of model restructuring business defined clearly A • • • • At the end of March 2011 when the present Manage The renewal of the development strategy and Sava’s business model is necessary due to: Restructuring strategy – building the basis Restructuring strategy cycle of Sava for a new development ment Board of Sava d.d. took the up prepara its duty, tions for mapping out the restructuring strategy began the Management Board first In May, with high intensity. prepared a short-term measures programme, which aims at improving the operations. months the In programme was the complemented following with a new development strategy, which in terms of its con tents represents the umbrella strategy of financial restructuring business- and consolidation of the Sava Group in the upcoming medium-term period, i.e. until the end of 2014. The strategy of business-financial restructuring of Sava until 2014 will facilitate a significant increase in the value of the company, a decrease in indebtedness and will provide a firm basis for the growth in the Sava share value. With unanimous support by the Supervisory Board, the Management Board expects that banks – the Sava partners will offer their full assistance, too. The reorganisation of Sava d.d., a companies were already carried out last December. change Group’s management model and the merger of Tourism in the The decision about disinvesting will be made in the final phase of examining the market as to the potential of Sava d.d. which includes all investments options for disposals, 60 ANNUAL REPORT 2011 BUSINESS REPORT phases: The strategy of business-financial restructuring and consolidation of Sava until the end of 2014 includes three key and asufficientinnerstrengthforitsimplementation A healthydevelopmentpotentialforrestructuring Zagotavljanje likvidnostiinreprogram Zagotavljanje likvidnosti in reprogram Zagotavljanje likvidnosti in reprogram Zagotavljanje likvidnosti in reprogram tional structureoftheSava Group andSavad.d. Organisa – 3 Chapter is report, annual this in presented d.d. Sava of structure organisational present The development oftheSavaGroup. faster a and performance better a for conditions lish and strategic supervision, by way of which it will estab management corporate of efficiency and quality the the Sava managing Group began to operate, for whose role is to directorate improve a 2011, October 1 On centres. profit market-oriented as independently acting by or operations, Sava of level the to function business their transferring company, parent the within services rate corpo- professional in restructured being by role new a got knowledge of centres competence previous The organisation ofactivemanagement. clearly than this was the case with the previous network more subsidiaries its and company parent the tween be responsibilities and competences defines which formed, was structure organisational decentralised A cost efficiencyarea. and productivity in advantages significant from gained d.d. Sava which of account on Group, the and pany com the in processes business reform to and nisms mecha- management and supervision new establish to was changes organisational these of purpose The at theendofDecember2011. planned, the aforementioned changes were carried out as delineated; the were Group the of of model management change a and d.d. Sava of structure sational organi- new a process, restructuring the support To and d.d. Sava of structure organisational new A efficiency enhance to model management the in change a Key steps: Until theendof2011 PHASE 1 • Complete thepreparationsformergingTourism• companies. modeloftheGroup themanagement Establish aneworganisationofSavad.d.andchange • Sava’s financialliabilities. Make anagreementoncoordinationofduedatesfor • Assure solvency.• OF RESTRUCTURINGSTRATEGY OFSAVA ESTABLISH CONDITIONSFORTHEIMPLEMENTATION
- - - -
Sava’s tourism companies in carrying out the activities the out carrying in companies tourism Sava’s of associates and teams management the by assisted merger,the until period be will board management the transition the In 2011. October 1 on task this up took who d.d., Bled Hoteli Sava of board management new One of the steps in merging Tourism was to appoint the Merging thecompaniesofTourism willassure: ing itsoperations. expand- and development the in investments making Tourism will gain better opportunities for further growth, Owing to the internal restructuring and standardisation, operation. best possible standardisation and rationalisation of the the at aimed all which years, past the in changes tain cer underwent already companies individual that fact the despite full, in utilised not was company merged a from resulted have could that effects synergetic of potential the companies, separate several in ganised or being to due that showed analysis strategic The mance intheoperationsofthisdivision. perfor and efficiency greater achieve to and analysis strategic the of basis the on made was company one The decision about merging five Tourism companies in performance enhance to companies the Merging • • • of Tourism
in effects synergetic of utilisation efficient more
ses ofoperations. proces- all in service quality high a achieve to der mon processesindestinations. marketing andsales. Introduction A Optimisation f nfr bsns sadrs n or in standards business uniform of n rtoaiain f eti com certain of rationalisation and - - - - - BUSINESS REPORT ANNUAL REPORT 2011 61 - - procedure for divesting a 75.72% stake in this bank and bank this in stake 75.72% a divesting for procedure on made was decision the consortium; the suspend to advisor financial the by up drawn report the of basis the and the estimate of the macro-economic environment. will d. d. Sava strategy adopted the with accordance In in portfolio, investment its of restructuring the on carry cluding the banking sector. It was defined within this a through company the of assets the enhance to scope Vipa Abanka and d.d. Banka Gorenjska between tie-up d.d. Already in the past, Sava d.d. motioned this idea and now it estimates it as one of best optimum future scenarios. In December 2011, Sava d. d. sold its 27.0% stake in slightly of price at o. o. d. Job company associated the activities divesting the 2012, In million. €0.3 than more are carried on with intensity. d. d. and was entered in the register of companies on 30 December 2011. The management board of Sava Hoteli Bled d. d. assumed managing of Sava Turizem d. d., while the responsibility of executive directors is to assure quality services, enhance guest satisfaction and maintain excellent performance of individual des tinations.
- IMPLEMENT THE RESTRUCTURING STRATEGY AND/OR RESTRUCTURING STRATEGY IMPLEMENT THE D.D. INVESTMENTS OF SAVA DIVEST INDIVIDUAL • of Sava d.d., which are saleable Divest the selected investments at reasonable price. • and improve their operations, Restructure other investments for preserving or a potential sale thereby enhancing their value in more suitable conditions. Profitability. profitability with or without additionally needed investments. for enhancing Potential reducing financial liabilities of the Group in the case of any sale. for Possibility for a divestiture on favourable terms. Acceptability of transaction environment Strategic suitability.
Key steps: Key • • • • • PHASE 2 Beginning in 2011, mainly in 2012, carrying on in 2013 ated the procedures for testing the market as to the feasibility of individual divestitures. optimise risk management and To maximise the value strategic various examining of process the divesting, at options incorporates all investments of Sava d.d. The Management Board will make a final decision about implementing a particular option in the final phase of the performed procedures. In the beginning of January 2012, Sava d.d. and other consortium members for a joint sale of the ownership stake in Abanka Vipa d.d. decided to discontinue the - thorough already d.d. Sava of Board Management The ly analysed the strategic portfolio of real and financial competitive the analysing included which investments, environment, long-term development potentials and initi it time same the at while requirements, investment The criteria for choosing between divesting and restructuring the assets of Sava d.d. are as follows: divesting and restructuring the assets of Sava d.d. are as follows: The criteria for choosing between The restructuring process provides a strategic potential for the development to all divisions of the present Sava: strategic suitable most of selection the through others to and Group, Sava restructured new, a in them of some to of the Group. partners and a faster development outside d. d. This merged company was named Sava Turizem The merger of Tourism companies was by carried merging the companies Ptuj out Terme d. o. o., Terme 3000 d. o. o., Zdravilišče Radenci d. o. o., and Terme Lendava d. o. o. to the company Sava Hoteli Bled necessary for establishing the organisational structure, organisational the establishing for necessary effective operation of the division. which will assure an 62 ANNUAL REPORT 2011 BUSINESS REPORT process Sava afterthecompletedrestructuring Key steps in 2013and2014 PHASE 3 • New potentialpurchasesofstakesandtake-overs. • indivisions. Focus• synergies onfurtherimprovementsofoperationsandimplement Proceed withcertaindivestingprocesses. • OF SAVA D.D. MAXIMISE THEVALUE OFINVESTMENTS investmentportfolioofSava d.d. Potential forcreatingsynergiesusingthepresent • andneedrestructuring. Growthpotentialbutpresentlyshowalowprofitability • investments insharesandstakesofcompaniesthat have: The investmentpolicyofSavad.d.willbedirected to making anddivestingofinvestments. Generatesprofitfromdivisions,andacquiring • Isstilllistedonthestockexchange. • will betheinvestorwhich: When therestructuringprocessiscompleted,Sava d.d.
BUSINESS REPORT ANNUAL REPORT 2011 63 - - - - registered
Tourism In 2011, the tourism sector was characterised by slow recovery of the political world changes economy, a in the Near East and North Africa, and a natural disas a 4.4% growth in the ter number in of Japan. However, Europe whereas reached, was arrivals guest Rubber Manufacturing In 2011, the market of industrial rubber products and tyres experienced fierce competition and price pres sure in this connection; however, in global terms, the market was thriving. In the first nine months of 2011, the prices of the basis but increased rubber, – materials manufacturing rubber at the end of the year they slightly fell. purchas of optimisation the on focused Manufacturers ing and internal processes – increase productivity and decrease other costs, including inventory costs. The existing demands change and demands for new products open up, while new emerge. markets and The niches demand for hanced, and after-sales environmental standards grew more rig- services en- orous. the lowest level since the beginning of the economic crisis. financial The yield of the key Slovene stock exchange (Slovene blue chip index index SBI TOP) reduced by 30.7% in 2011. The main reasons for low indices stock were the exchange general negative movements of the domestic economy and poor liquidity of the Slovene from levels the behind lagged still which market, capital the previous periods. The latter is by 4.6% lower than in 2010. ------General economic economic General circumstances, the impacts impacts the circumstances, trends and recession of the 4 Market capitalisation of all shares Stock Exchange decreased at to €4.9 billion, which was the Ljubljana At the end of 2011, the plummeting of loan activities slowed down slightly, but financing by banks further grew stricter. The inflation in 2011 amounted to 2%, which was simi In the last months of 2011, the situation in the labour market further deteriorated, the modest growth in the average gross wage was still due to the private sector. The number of unemployed reached the highest point after the outbreak of the crisis. vely affected the economic activity in Slovenia were the continuation of a credit crunch, distrust in the banking the in distrust crunch, credit a of continuation the were Slovenia in activity economic the affected vely domestic The market. bonds government the in circumstances deteriorated and situation political the sector, environment in 2012. any major changes in the economic market does not expect circumstances General economic In 2011, a modest economic growth was registered in the amount of 3.8%, which was by 1.4 percentage point less than in the previous year, and 0.6 percent age points below expectations. The most developed countries, which include the Euro faced both the Zone lowest and countries, the highest growth was Zone in Euro the in growth the 2011, the the In economy. estimated at 1.6% at the annual level. In Slovenia, the economic growth is estimated at 1%, or below the Eu ropean average, which was the case in previous years too. Important factors which negatively affected the economic activity in Slovenia are the continued credit crunch, distrust in the banking sector, political situa government the in circumstances deteriorated and tion bonds market. lar to the rate of the previous three years. The weak economic activity and higher prices of oil and food at the beginning of the year affected the prices in Slove nia and the entire Euro Zone where the inflation rate stood at 2.8%. A lower growth in the inflation rate in Slovenia was due to a decline in demand for consum ables, while the inflation rate was importantly affected in increase net and products energy of prices higher by levies originating from the difficulties in public finance. In 2011, a modest economic growth was registered in the amount of 3.8%, which was by 1.4 percentage point percentage 1.4 by was which 3.8%, of amount the in registered was growth economic modest a 2011, In and 0.6 percentage points less below than expectations. in the The previous major year, factors that negati 64 ANNUAL REPORT 2011 BUSINESS REPORT are expected in the area of wages, pensions and social changes structural Slovenia, of Republic the of budget the in deficit a to Owing exists. Zone Euro the in uation sit economic the of deterioration further from resulting operations export-oriented the in decline a of er,risk a any significant changes in the industrial sector, howev- expect not does market domestic The 2012. in growth economic the to regard with expectations the creases de- which period, crisis new a into got it 2011, of half second the in that Zone Euro the of characteristic is It 2012 The expectedeconomiccircumstancesin more thana40%declineinnon-residentialbuildings. 30% decline was registered in the approximately building of flats, and an 2011, In funding. obtaining in ties difficul reported companies of 39% demand, in cline de a with deal to had companies construction all of 58% 2011. in policy financing stricter a and power ing The building industry faced another fall in the purchas- Construction sector being increase higher withforeignguests. the 2010, in than made were stays overnight more 5% and arrivals more 7% Slovenia, In just the opposite of the economics recovery indicators. is which arrivals, guest of number the in increase 6% a - - - improvement oftheeconomiccircumstances. The construction industry does not expect a substantial both inSloveniaandEurope. grow will tourism of significance The guests. foreign to owing mainly 2%, Slovenia in and 4% about Europe in 4%, and 3 between rate arrivals guest the increase to anticipates sector tourism the level, international the At prices. increasing their and materials raw required assuring in arise can problems 2011, In future. the in expected is ket is still rather fragmented, therefore its consolidation mar tougher,the grows competition the though Even products. rubber industrial for market world greatest growth is estimated in Asia, which already presents the ex annually.5% above-average to An 3 at grow is to pected industry manufacturing rubber of market The and India. China particularly regions, developing certain in tivities the figure being based on the expected increase in ac- 3.3%, reach to estimated is it too; 2011 in than lower be to expected is growth economic the terms, global In 0.5%. be should growth economic the in decline a Forecasts for 2012 for the Euro Zone are thus negative, tition, the inflation rate is expected to decrease in 2012. price increases in certain sectors with a limited compe transfers to individuals and households. Despite recent - - - BUSINESS REPORT ANNUAL REPORT 2011 65 - - 2011 193.8 2010 176.7 172.9 2008 2009 231.8 companies generated sales that was 12% lower than in than lower 12% was that sales generated companies the previous and year, due to a further decline in pur chase power and a stricter financing policy in connec tion with the real estate projects, it lagged by one half behind plan. Rub- division, Group Sava by structure revenues the In Network had Trade ber Manufacturing with the Foreign a 62% a share, 33%, Tourism Real Estate a 3% share, the remaining 2% referred to the sale by companies foreign the in sales of share The operations. other from 2011. in 53% to 47% year’s last from increased markets operations Business Group Sava of the 2007 188.2 - - 0 55 50 300 200 100 250 150 Business performance
SAVA GROUP SAVA Sales revenues from 2007 to 2011 (€ in millions) The generated sales revenues of Sava Group compa Sales revenues 5.1. Owing to further growth in demand and, consequently, increased volume of orders, Rubber Manufacturing with the Foreign Network Trade generated sales rev nies amounted to €193.8 million in 2011, and were 10% were and 2011, in million €193.8 to amounted nies higher than in the previous year and at the sales revenues level. planned enues of €119,2 million, which was 10% more than in thereby exceeding the the same busi- period last year, amounted Tourism of revenues Sales 6%. by plan ness to €64.8 million, which was a 7% increase on last year, and 0.5% increase on plan. As expected, Real Estate In 2011, Sava Group companies generated sales revenues of €193.8 million, which was 10% more than in 2010, and at the planned sales revenues level. A net loss of €157.2 million was made. The deviations from plan mainly resulted from impairments of financial investments of Sava d.d. and inventories in total amount of €160.3 million. The demanding economic environment strongly affected the operations of the Sava Group. After a successful successful a After Group. Sava the of operations the affected strongly environment economic demanding The year of 2010, Rubber Manufacturing companies Network with ended the Foreign the Trade year 2011 excel- meaning lently, that their achievements were better than in the previous year and even better than planned, the for Already situation. economic the to adapting their of spite in plan behind lagged divisions other whereas tailored was Group, Sava the of company parent the d.d., Sava of performance the succession, in year fourth of financial investments. by the additional impairments 66 ANNUAL REPORT 2011 BUSINESS REPORT ries inrealpropertiestheRealEstatedivision. invento of impairments to referred mostly and million, €10.8 to amounted TourismWrite-offs the companies. in hours work in surpluses and holidays unutilised with connection in provisions the and reorganisation, the with connection in provisions of result a as mainly lion, mil €4.8 by up went costs labour and million, €7.4 by tate, costs of goods, materials and Es services went down Real in activities business decreased the 2%. to by Due higher were they year past the to compared and million €203.7 to amounted expenses Operating the strategicpolicies. subordinated to the changed volume of operations and entirely and supervision rigorous a under were panies com Group Sava all in expenses operating 2011, In Operating expenses EBITDA – Earnings before interest, taxes, depreciation and amortisation EBIT - Earnings before interest and taxes (%) by divisionin2011 Sales revenuesstructure SAVA GROUP (€ inmillions) from 2007to2011 EBITDA andEBIT SAVA GROUP Other Operations Real Estate Tourism with theForeign Trade Network Rubber Manufacturing EBIT EBITDA -10 10 15 20 25 30 -5 5 0 - - - - 2007 24.4 9.0 expenses a2%share. 28%, depreciation a 7%, a write-offs a 5%, and costs other operating labour share, 58% a had services materials and goods, of costs the structure, costs the In maining divisionsmadealossatthislevel. re Tradethe Foreign while the Network, with facturing Manu Rubber by only generated was profit operating Tourism.in provisions and Estate, Real in ventories An of €5.0 million, its loss amount being due to operating impairments of in an made Group Sava the 2011, In Operating loss(EBIT) 33% 082009 2008 21.4 -5.9 3% 25.5 2% 4.9 2010 20.9 3.0 62% 2011 19.8 -5.0 - - - BUSINESS REPORT ANNUAL REPORT 2011 67 - - - investments in Abanka Vipa d.d. in the investments in NFD Holding d.d. in the investments in Gorenjska Banka d.d. in investment in Maksima Invest d.d. in the Financial Loan Financial Financial Financial amount of €16.6 million. €6.7 million. amount of €4.1 million. the amount of €10.6 million.; amount of €82.5 million.
of amount the in d.d. Holding NFD to granted
nies • • • compa Net revenues from the associated In 2011, net revenues from the associated companies achieved €109.6 million, as a result of significant im Pre-tax loss A total pre-tax loss amounted to €169.1 million. The amount of the generated loss was greatly influenced by impairments of inventories and impairments of fi- nancial investments in total amount of €160.3 million. Share in the profit of associated companies the profit of Share in Abanka d.d., Banka Gorenjska to referred mainly These Vipa d.d., and amounted to €11.0 million, and referred to the received dividends. of the associated compa Share in the loss nies A share in the loss of the associated companies total- the selling at made loss the to referred million €0.1 ling in JOB d.o.o. financial investment in the Impairments of financial investments associated companies Impairments of financial investments in the associated companies totalled €120.5 million and referred to the following impairments: • • pairments of financial investments. - - - Other financial expenses in the amount of €8.2 million were mainly losses in the sale of financial assets and expenses in connection with liabilities from interest rate swaps. Impairments of financial investments available for available investments financial of Impairments sale were carried out in the amount of €29.0 milli- and listed of value fair in drop a to referred and on, im and 1, NFD fund mutual the securities, unlisted es was 17% higher than in the previous and year, amounted to 5.80%. pairments in connection with a liability arising from a call option contract. Interest expenses for received €22.4 million and were 5% higher than loans in 2010 on totalled account of the increased variable interest The average interest rate rate. in Sava Group compani
Financial revenues Financial These were made in the net amount of €54.5 million. of impairments by aggravated was result financing The financial investments available for sale totalling €29.0 million. Net financing expenses • • The structure of financial expenses, which were mainly generated in the parent company Sava d.d. is as fol- lows: viate from the planned financing expenses. viate from the planned financing expenses. • Financial expenses Financial expenses financial In comparison with the same period last year, de strongly they and half, one by lower were expenses Financial revenues were mainly generated in the parent the in generated mainly were revenues Financial company Sava d.d., and in terms of substance, they represented interest revenues, proceeds from the sale of financial assets and the dividends received apart from the associated companies. from the dividends Financial revenues were made in the amount of €5.1 higher than in 2010. million and were 8% 68 ANNUAL REPORT 2011 BUSINESS REPORT When calculating the ratio between the net loss and the Return onequity Pre taxprofit/lossstructure Contribution tothereturnonequityofSavaGroup bytypeofperformance of financialinvestments. impairments performed the with connection in formed were and d.d., Sava company parent the in generated the previous year. Deferred tax receivables were mainly in than higher considerably was and million €11.9 to Net deferred tax of Sava Group companies amounted Tax p.p. =percentage point PRE-TAX PROFIT/LOSS Profit fromoperationslessnegativegoodwillandwrite-offs Return (netprofit(loss)/average equity Operating profitwithoutnegativegoodwillandwrite-offs Profit/loss ofassociateswithoutincludedimpairments Financial resultwithoutincludedimpairments Impairments ofassetsinprofit/loss Newly arisennegativegoodwill Financial resultwithoutimpairments Impairments ofassetsinprofit/loss Newly arisennegativegoodwill Tax Profit/loss ofassociateswithout includedimpairments (€ inmillions) from 2007to2011 Net profit/loss SAVA GROUP -200 -150 -100 100 -50 50 0 2007 39.3 –0.2 –0.5 p.p. 0.2 7.3 p.p. 1.6 p.p. amounted to48.6%. average balance of equity, the return was negative and total amountof€160.3million. impairments of inventories and financial investments in by influenced greatly was loss the of amount The lion. In 2011, the Sava Group made a net loss of €157.2 mil Net loss 8.4 % 2008 p.p. p.p. 2008 41.6 34.2 -1.5 - 0.0 1.0 7.9 0820 2010 2009 2008 1.9 –5.0 –0.7 0.3 p.p. 4.7 p.p. 1.0 p.p. 0.3 % 2008 p.p. p.p. -25.8 2008 24.5 -3.4 0.3 5.0 - 0 23.4 –7.6 0.2 p.p. 6.8 3.7 p.p. 1.9 p.p. 5.0 % 2009 p.p. p.p. -35.9 2009 22.5 17.4 31.9 9.1 - -99.9 0 –20.8 –1.4 p.p. –4.5 –21.5 % 1.2 p.p. 1.2 p.p. -105.1 2010 -20.1 -93.1 2010 p.p. p.p. -157.2 2.6 5.5 2011 - 0 –47.6 –7.9 –48.6 % 3.7 p.p. 3.4 p.p. 1.8 p.p. -169.1 -160.3 -25.5 2011 2011 10.9 p.p. p.p. 5.8 0 - - BUSINESS REPORT ANNUAL REPORT 2011 69 - - - 766 2011 2,675 8,066 -1,960 -3,517 -2,005 -8,498 45,815 46,530 -17,459 -26,487 -17,427 -11,436 -57,966 -16,661 -121,516 -129,582 -101,658 OCT-DEC OCT-DEC of the Sava 872 458 534 366 -499 2011 1,662 3,922 -3,452 -2,292 54,195 55,525 -13,446 -31,914 -21,910 -15,426 -17,088 -51,603 -21,376 JUL-SEP JUL-SEP non-current securities 17 -98 895 614 328 2011 2,543 2,160 1,832 5,920 , which ate 31/12/2011 achieved changes in assets -3,461 -7,245 -1,205 -6,631 51,141 51,938 -13,389 -31,357 -49,395 APR-JUN investments in the associated com- -51 -19 500 -310 2011 1,533 3,230 1,851 -3,534 -9,811 42,632 44,665 -12,750 -28,103 -13,041 -22,378 -24,229 -44,716 -14,367 JAN-MAR available for sale €41.2 million, and decreased by €26.0 million in This comparison with the end of the previous year. amount their impairing to due mainly was decrease as a result of a further drop in fair value. panies, which at 31/12/2011 amounted to €199.8 million, was by €119.3 million net lower if compa red to the end of the This previous decrease year. was mainly due to impairing their amount as a re sult of further drop in fair value. The The value of investment in value of
are are sold and dividends received as well as on interim Cer investments. financial of values fair of movement tain divisions face seasonal fluctuations, therefore a comparison of the quarterly results with those of last reasonable. not is analysis detailed a without year • Assets The most important Group in 2011 were as follows: • - Cost of goods, materials and services Operating revenue Other operating revenue Change in inventories of products and work in progress Change in inventories of products and Financial income Financial expense Other write-offs Operating expenses Depreciation and amortisation Net financing income Net income/ expense from associates Other operating expense Tax Labour cost Net sales revenues from goods sold and services rendered Net sales revenues from Operating income Net profit/ loss for the year Pre-tax profit/ loss 50% of long-term assets of the Sava Group were fi In the liabilities structure, capital had a 27% share, non- share, 27% a had capital structure, liabilities the In current liabilities a 13%, and short-term debts a 60% share. nanced by long-term sources, and 50% by short-term sources. In the assets structure, financial investments and short- and investments financial structure, assets the In term assets available for sale had a 45% share, prop- plant erty, and equipment a 37%, other current assets a 14%, and other assets a 4% share. At 31/12/2011, the balance sheet total amounted to €611.3 million and was €149.6 million or 20% lower than at the end of 2010. Balance sheet total, assets and liabilities structure 5.2. Assets and liabilities structure Income statement of the Sava Group by quarter in 2011 of the Sava Group by quarter in Income statement 2011 The parent company Sava d.d. still makes a significant significant a makes still d.d. Sava company parent The contribution to the results of the Group. The dynamics by d.d. Sava of performance business the achieving of investments financial when on depends greatly quarter Income statement of the Sava Group by quarter in 70 ANNUAL REPORT 2011 BUSINESS REPORT • • as follows: were 2011 in liabilities in changes important most The Capital andliabilities •
value of all types of assets in Sava IP d.o.o. IP Sava in assets of types all of value
(€ inmillions) comparison with31/12/2010 at 31/12/2011anda Assets structure SAVA GROUP fall due for payment in 2012, under short-term lia short-term under 2012, in payment for due fall which liabilities, long-term of part that transferring to due mainly is decrease This year. previous the of end the at than lower million €151.4 were and liabilities Long-term 49%. or million €157.6 by decreased year,thus value its previous the of end the with comparison In million. tive change in the revaluation reserve totalling €0.4 nega- net a and million, €157.2 totalling Group the the previous year was due to the generated loss of with comparison in decrease its liabilities; total of 27% represented million €165.8 totalling Capital bilities. der un transferred was sale for earmarked are which The 31/12/2011 31/12/2010 hr-em ses vial fr sale for available assets Short-term mutd o 8. million €81.4 to amounted 1000 800 600 200 400 0 and investment 238.6 equipment, plant and Property, property n the in 225.2 - - 319.1 • • • associates
ments in value of all types of liabilities of Sava IP d.o.o. IP Sava of liabilities of types all of value of value Invest- last yearisnotreasonable. of liabilities of the Sava Group with the same period es for sale, therefore a comparison of certain types under transferred was sale, for intended are which million, €17.9 of amount the in additional borrowing. an to due also but sale, for Liabilities under d.o.o. IP Sava of loans the classifying to due extent, nor mi a to and, loans, of part long-term a from red transfer being their to due mainly year, previous the of end the at than higher million €159.4 were debts Short-term The The es forsale. Liabiliti under d.o.o. IP Sava of loans obtained the transferring to due entirely is decrease This 2010. of end the at than less million million, €10.7 by was which €371.3 to amounted 31/12/2011 at nies liabilities financial current same periodlastyearisnotreasonable. the with Group Sava the of assets of types certain amount of €32.3 million, therefore a comparison of 199.8 67.2 Long-term securities totally obtained long-term loans and loans long-term obtained totally 41.2 civd 341 ilo and million €364.1 achieved 135.9 assets Other 1.5 145.1 of Sava Group compa- Group Sava of 760.8 Short-term liabiliti- Short-term ASSETS ASSETS TOTAL 611.3 - - - BUSINESS REPORT ANNUAL REPORT 2011 71 611.3 Total capital Total and liabilities 760.8 38% 364.1 Current liabilities 2% 204.7 35% 81.4 liabilities 25% 232.8 adapted to the economic situation and requirements of requirements and situation economic the to adapted the manufacturing and service providing process. - 165.8 Capital Long-term 323.3 0 400 200 600 800 1000 Rubber Manufacturing Network Trade with the Foreign Tourism Other Operations Sava d.d. 31/12/2010 31/12/2011 SAVA GROUP SAVA Structure of investments in plant, property and equipment by division (%) SAVA GROUP SAVA Liabilities structure a at 31/12/2011and comparison with 31/12/2010 (€ in millions) ciates, or 30 less than at the end of the previous year. During the the year, number of employees was being At 31/12/2011, the Sava Group employed 2,256 asso Number of employees in the Sava Group Investments Given the difficult economic situation, the investments in Sava Group companies were limited to urgent in- €6.3 million. vestments and reached the value of 72 ANNUAL REPORT 2011 BUSINESS REPORT employees, the negative trend turned into a positive positive a into turned trend negative all the of employees, part the on knowledge and loyalty work, hard and vision, clear management’s the to owing but all, at promising not were beginnings The decade. this in ing anew, programmes passed cycles various through manufactur rubber organised and united has which h 10 the with the TradeForeign ufacturing Network, celebrates the d.o.o., of company Savatech leading Rubber Man 2011 in operation Division • • • • • follows: as were TradeNetwork, Foreign the with Manufacturing Rubber affected which ronment, envi economic the of features significant more The future. the in place take to ed expect is consolidation fragmented, accelerated an rather why is which still is it yet up, picked thus ket mar the things, of scheme global the In products. of prices on pressures consequently, and, fierce competition faced tyres and products market rubber the industrial 2011, of In industry. construction and car the with connected closely is Manufacturing Rubber in 2011 ith the Foreign Trade Network bber ManufacturingCharacteristics division of the economic environment 6.1. de Network thus surpassed the 2011 plan, whereas other Sava Group companies lagged behind their plans. provisions, and that of Real Estate by impairments of inventories. Rubber Manufacturing with the Foreign Tra of formation the by aggravated Tourismstrongly of was performance The expectations. all beyond year the ended and again orders of volume the enhance to TradeForeignmanaged the Network with Manufacturing Rubber of companies The companies. Group Sava on effects various exerted circumstances economic The
tricter environmental standards and their obser their and standards environmental tricter and purchasing of optimisation the on focus he servi after-sales for demand customer nhanced competiti stronger orders, of volume ncreased materi manufacturing rubber in increases rice nufacturing operations. nufacturing ma rubber the in incorporated further are vance ces. prices. selling on pressures inventories, of optimisation intense on, rubber. als- one of the key efficiency factors. efficiency key the of one is circumstances uncertain in processes internal I P S T E
w Ru th anniversary of its existence. The company, company, The existence. its of anniversary 6 6 ------
Business operations by division cooperation between the partners remain valid too. valid remain partners the between cooperation on agreements other All d.o.o.. Savatech by owned remained will located are covers roll of manufacture the for premises the where property real The KG. Co. & GmbH SchäferRolls partner German the by owned wholly- became thus d.o.o. Sava-Schäfer company manufacturing rubber The Kranj. d.o.o., Sava-Schäfer of covers roll for the manufacture company ownership mixed the in stake business a 50% selling about ment agree an made KG, Co. & GmbH SchäferRolls pany partner, and d.d. In the Sava long-time com 2011, Russia. in office sentation repre a and USA, the Poland, Republic, Czech man, Ger England, in companies the of consists presently network network the trade activities; sales in role important an foreign plays the formation, its since Ever the from start. very products new of development the in pate partici to able are they suppliers, with partnerships development in involved are specialists As Savatech’s preservation. environmental and ecology the by out set requirements the and trends recent most ing consider thereby products, existing the for uses new with dealt also Institute R&D in-house the d.o.o., tech Sava- of programmes all in developed were decade this in which products, new of number a to addition Rub In Trade Network. Foreign for the with one Manufacturing ber successful very a was 2011 year The promptly to activities. in decline a managed stop we situation, delicate the to adapting at aimed actions fast and measures timely to Owing too. consequences, the d.o.o. with cope Savatech to had off, sparked crisis the financial when global However, world. the across boom eco nomic the by strengthened further were which lowed fol growth of years The years. two after already one
------
BUSINESS REPORT ANNUAL REPORT 2011 73 ------57 98 110 173 172 104 192 469 Index in Rubber 2011/2010 € in millions 8.3 6.7 882 75.6 41.7 12.2 2011 119.2 117.3 4.8 3.9 2.6 902 39.4 73.8 2010 107.9 113.2 . Investments in the amount of number of employees 1.3 1.1 2.9 899 87.7 74.1 39.0 35.1 2009 generated in 2011, amounted to €8.3 mil investments assets of the companies from Rubber Manu 0.0 0.0 6.6 71.8 37.9 33.9 2008 110.6 1,078 quickly to customer initiatives. For 2012, we plan to €124.3 million, which is generate 4% more than in 2011, a total sales revenues expan in of investments and million, €8.3 of profit pre-tax total capacities production of modernisation and sion ling €5.9 million. Total profitTotal Manufacturing with the Foreign Trade Network amount Network Trade Foreign the with Manufacturing of 2010. ed to 882, or 20 less than at the end lionandwasalmost twice highasgeneratedas thein previous year, while it exceeds the planned value by 25%. All companies except Savarus d.o.o. from Rus sia, which was affected by the unfavourable Rouble/ Euro exchange rate and lower sales results 2010, madethan a positivein result. The companies of this division earmarked €12.2 mil lion for €9.8 million referred to purchasing real property from theparent company Sava d.d. in Labore, Kranj, while investments in the amount of €2.4 million were made in connection with the modernisation of the produc tion equipment. 64% of facturing with the Foreign Trade Network in the amount the in Network Trade Foreign the with facturing of €117.3 million were financed with capital and 36% with foreign sources. At 31/12/2011, the - - 4.6 3.5 3.4 65.3 32.4 32.9 2007 109.3 1,040 s for Rubber Manufacturing with the Foreign Trade Network are consolidated. s for Rubber Manufacturing with the Foreign Trade
Sales revenue entered in the register of companies in the beginning of 2011. In
Sales revenues* Pre-tax profit Net profit Assets Capital** Liabilities Investments in property, plant and equipment Investments in property, Employee number 2012 business plan It is estimated that in 2012 the international environ ment remains uncertain and risks high. The prices of oil, energy and services are expected to rise, whereas for challenges Our stop. will materials raw of prices the the future are to expand our business to new markets, develop new products, establish links and respond work had a 62% share. In the consolidated total sales of Rubber the Manufacturing Sava Group, with the Foreign Trade Net The companies of Rubber ManufacturingForeign with Trade the Network €119.2 made million, which was a10% improvement saleson the revenues previous of year, and 6% more than planned.sales revenues62% wereof made in foreign markets in countries.92 The geographical dispersion of customers and a highly varied sales mix along with introducing additional sales and marketing activities assisted in bridging the crisis situation. The increase in capital amount of of €31.2 Savatech million, d.o.o.which had been in approvedin 2010, the was entered in the register of companies in 2011;theassets ofthecompany increased further by purchasing the remaining real property at Labore in Kranj in the amount of €9.8 million. In 2011, Sava d.d. sold Sava Rol d.o.o., Zagreb,Savatech d.o.o.to ** was which approved, was million €31.2 totalling kind in investment an with d.o.o. Savatech of capital in increase an 2010, *
Key data for Rubber Manufacturing with the Foreign Trade Network with the ForeignKey data for Rubber Manufacturing Trade
by division by division Business operations operations Business 74 ANNUAL REPORT 2011 BUSINESS REPORT the generated results surpass last years’ figures and figures years’ last surpass results generated the overnights, of number the and price average the both in in growth particular.the register we markets, foreign In markets, Asian the up, opening are markets new however,markets, overseas the in poorer were results The Balkans. the and Europe West of markets the in results after-sales good about brought arrangements business of implementation and approach efficient An of overnightsincampsitelagsbehindplan. number the though achievements, year’s last sur passed accommodation of types all in stays Overnight than in the previous year, and 2.2% more than planned. made 1,091,850 overnight stays, which was 6.9% more Turizemd.d. Sava under destinations tourist 2011, In Hotels &Resorts. Sava brand umbrella the under appear they Slovenia; in providers service tourism key the of one represent The destinations included in Tourism of the Sava Group agement systemwilldiscontinueitsactivitiesin2012. man efficient the introducing in companies Tourism ed. Sava TMC d.o.o. established in 2009 to support the management board of Sava Turizem d.d. was appoint new the 2011, In companies. of register the in entered was it 2011 December 30 on and named d.d. Turizem Sava was company merged The d.d. Bled Hoteli Termeand d.o.o., Ptuj Sava to merged d.o.o. Lendava Termed.o.o., Radenci Zdravilišče d.o.o., Terme3000 Division operationin2011 being increase higher withforeignguests. the 2010, in than made were stays overnight more 5% and arrivals more 7% Slovenia, In just theoppositeofeconomyrecoveryindicators. is which arrivals, guest of number the in increase 6% a guest arrivals was reached, whereas Europe registered However,Japan. of in number ter the in growth 4.4% a disas natural a and Africa, North and East Near the in a economy,changes world the political of recovery slow by characterised was sector tourism the 2011, In in 2011 ourism division Characteristics of the economic environment 6.2.
T - - - - 22 lessthanattheendof2010. Tourism31/12/2011 At sources. million were financed with capital, and 50% with foreign the of 50% ments inthequalityofguestaccommodation. improve and slide water new a of building capacities, existing the of renovation the in made were and 2011 Investments company toendtheyear2011withapositiveresult. only the was Terme3000 million. €3.2 of amount total in reorganisation the with connection in pays erance sev and holidays unutilised hours, working unutilised for provisions of formation the to due mainly was loss The planned. than more also and year previous the in A Sava Group, thedestinationsofTourism the hada33%share. of sales consolidated total In better. 0.5% by were 2010 revenues sales the while 7%, surpassed by achievements and million €64.8 the of in amount generated were Tourism of revenues Sales we linkedwithmarketingandsalespartners. niches, market the in sales of promotion the In sons. sea low in sales promote to order in networks trading an market. In 2011, we intensified our cooperation with lag behind plan. A similar trend was noted in the Austri- still but year previous the of revenues the above move planned overnight stays, while the generated revenues the and year previous the of stays overnights the both stays. The overnight stays figure in Slovenia surpasses overnight of number the in growth faster a with sated compen was however, which, achieved, price erage av the in decline a being consequence the petition, com- price fierce a experienced market domestic The growth. future the for basis good a provide markets overseas new the and Europe East and Balkans the of markets selected the Europe, West of markets The too. plan loss of €3.6 million was made, which was more than more was which made, was million €3.6 of assets n ors aone t €. mlin in million €2.2 to amounted Tourism in of Tourism in the amount of €183.4 of amount Tourismthe of in 1,158 associates, or associates, 1,158 employed - - - - - BUSINESS REPORT ANNUAL REPORT 2011 75
- - - - - . 98 96 98 107 168 164 101 100 Index 2011/2010 € in millions Sava Sava Nova through an in through 2.2 -3.7 -3.6 64.8 92.3 91.1 2011 183.4 1,158 2.2 -2.2 -2.2 Sava IP Sava d.o.o. 60.7 96.0 90.6 2010 186.6 1,180 0.2 0.2 2.2 62.6 94.7 2009 197.7 103.0 1,256 , , Zagreb, in the amount of €9.0 million. A reha 69.0 89.3 12.4 -19.1 -19.3 2008 191.7 102.4 1,430 The increase in capital in in capital The increase vestment in kind of €7.1 million approved in 2010 was entered in the register of companies. Sava IP d.o.o. is earmarked for selling. The negotiations with a po tential buyer are already in progress on condition that certain projects are excluded from the sale and will be by owned remain will which company, the to separated d.d. Sava In 2011, Sava d.d. converted the granted loans in a capital investments to increase capital of d.o.o. - com the for approved and prepared was plan bilitation current the of model the defined which Croatia, in pany situation processing. The model defines accelerating and and an the immediate legal proceedings, pending property. real of sale the to approach active For 2012, Tourism plans to generate revenues of €66.7 of revenues generate to plans Tourism 2012, For million, or a 3% improvement on 2011. A pre-tax profit of €1.8 million will be made, employee number will re duce by another 100 by the end of the year. Invest ments will amount to €25.5 million, of which million €20.00 refer to a purchase of hotel capacities in Bled from Sava d.d., the rest in the amount of €5.5 million capacities is earmarked for the renovation of existing .
- - - - . 0.2 -0.1 - 64.6 96.7 25.1 2007 212.5 115.8 1,428 Real Estate division
Sales generated in relation with Sava Turizem d.d. generated in relation with Sava Turizem
Sales revenues* Pre-tax profit Net profit Assets Capital Liabilities Investments in property, plant and equipment Investments in property, Employee number 2012 business plan The year 2012 will be as demanding for Tourism as 2011. No significant changes in the economic circum- stances are expected, the risk of increased input pric es of materials and services exists. However, oppor tunities open up in the utilisation of synergetic effects arising from the merger of companies and the imple- mentation of yield and revenue management, and in conferences, golf and health services from the sales point of view. cline in demand, 39% of companies reported difficul ties in obtaining funding. In 2011, an and flats, of building approximately the in registered was decline 30% more than a 40% decline in non-residential buildings of revenues sales made of Estate Real The companies €6.5 million in 2011, or 12% less than in the previous year and half as less as planned. A loss was made in the amount of €10.2 million, which was entirely due to impairments of inventories in real estate both in Sava Zagreb. d.o.o., Nova Sava and Ljubljana, d.o.o., IP Division operation in 2011 ment in 2011 purchas- the in fall another faced industry building The ing power and a stricter financing policy in 2011. 58% of all construction companies had to deal with a de 6.3. Characteristics of the economic environ * revenues of Sava TMC d.o.o. were excluded from the cumulative sales revenues of as Tourism they were entirely Key data for Tourism Key data 76 ANNUAL REPORT 2011 BUSINESS REPORT foreign sources. w €49.0millionfinancedwere capital,with47% and the of 53% h misa o te nry aaeet business management energy the of mainstay The Kranj d.o.o.,Ruma. Sava GIP and d.o.o., Storitve in Medical Sava pany dooel., Ensa Skopje, Macedonia, and the Sava disablement com and B&H, Srbac, d.o.o, BH Ensa d.o.o., Črnomelj Energetika d.o.o., Sava Energetika panies: energy include operations Other Division operationin2011 to the ongoing financial crisis and the recession in Slo However,due available. is purposes heating for mass bio utilising for funding European and Government by enabling lucrative and safe investments in this field. there- co-generation, electricity and heat of promotion the for legislation suitable a introduced has Slovenia ment in2011 Characteristics oftheeconomicenviron 6.4. the whereas property, on tax value, estate real the in drop a demand, in decrease further face to have will operations estate real The Zagreb. d.o.o., Nova Sava IP and Group, Sava Sava the in incorporated remain will d.o.o. of part a selling after which plan, business 2012 the in included are Slovenia in companies Two 2012 businessplan the 2011, In million. €7.1 totalling kind in investment an with d.o.o. IP Sava for approved was capital in increase an 2010, * Key dataforRealEstate Employee number Investments inproperty, plantandequipment Liabilities Capital* Assets Net profit Pre-tax profit Sales revenues
increase incapitalwasenteredtheregisterofcompanies. In
Other Operations assets of Real Estate companies totalling companies Estate Real of aaeet com- management 2007 55.3 64.9 20.5 - 0.0 9.6 1.1 1.5 19 ith - - - associates, as it did at the end of 2010. companies Estate Real 31/12/2012, At briquettes), mainly to the issues of raw materials avail materials raw of issues the to mainly briquettes), and (pellets Herzegovina and Bosnia in manufacture biomass refined the of project the to paid was tention at Most market. external the and companies Group Sava of needs the for services provides It sources. energy renewable and use rational the for services ing is result isplannedatapositivezero. operating The companies. of functioning minimum a only ensure will and low be will costs planned ny.The which will be entirely generated in the Croatian compa- million €3.0 of revenues plans Estate Real 2012, For probably remainstrict. will execution project for loans obtaining for conditions ing industryandinsolvencyoflocalcompanies. process timber the in decline great a with deal to had Our most important market of Bosnia and Herzegovina were postponed. projects devised already the whereas planned, as out made in 2011. The existing projects are though carried not were operations energy in investments new venia, 2008 Energetika Sava d.d. Sava Energetika 64.5 18.7 83.2 46.8 2.1 1.2 1.6 19 2009 51.2 18.3 69.5 20.9 -0.2 -0.2 0.4 20 2010 , which specialises in provid in specialises which , 44.2 20.1 64.3 -2.7 -2.4 0.7 7.4 18 2011 -10.2 -10.2 23.0 26.0 49.0 0.0 6.5 18 employed € inmillions 2011/2010 Index 100 129 378 425 52 76 88 18 0 - - - - BUSINESS REPORT ANNUAL REPORT 2011 77
- - 93 39 39 94 84 106 137 108 Index 2011/2010 € in millions 5.0 4.1 7.2 1.6 137 -0.9 -0.9 11.3 2011 5.4 3.0 7.7 1.9 127 -2.3 -2.3 10.7 2010 4.8 4.7 7.4 0.4 133 -0.3 -0.3 12.1 2009 5.0 5.0 7.0 0.6 101 -0.1 -0.1 12.0 2008 changes in the operation of the A company. decrease in the amount of products and services provided to Sava Group companies demanded to expand the ser vice providing business out of the Sava Group in order in Group Sava the of out business providing vice the employee number. to be able to preserve A stable business of the company will be facilitated by maximising strategy, adopted the implementing of way the synergetic effects in doing business with Rubber Manufacturing and offering competitive services to the external market. In 2011, the companies from Other Operations made 2010 the below 7% was which million, €5.0 of revenues mil €0.9 of loss A plan. business below 31% and figure lion was made. The greatest contribution to the result business. was made by the energy management ing the assets and the value of the Sava share, thereby share, Sava the of value the and assets the ing Sava to pay-out dividend a for sources new generating shareholders. The renewed strategy refers to the Investment Finance operations and anticipates restructuring and divesting Storitve d.o.o. will expand its volume of operations in the real estate management. In 2012, Sava IT d.o.o. was included under Other Op- erations; the company includes ICT services for the Sava Group and until the end of 2011 it formed a part of Sava d.d. For 2012, we plan to generate sales revenues of €9.3 million, and a total pre-tax profit of €0.1 million. ------95 4.3 8.6 9.7 6.7 -0.2 -0.2 18.3 2007 phase nd Investment Finance
Sales revenues Pre-tax profit Net profit Assets Capital Liabilities Investments in property, plant and equipment Investments in property, Employee number Investment Finance operations are carried out within the parent company Sava d.d. In 2011, a revised strat 6.5. egy of business financial restructuring of Sava create to is strategy the of goal The devised. was 2014 until enhanc performance, the improving for conditions the In the next year the disability company Sava Medical in Medical Sava company disability the year next the In 2012 business plan The key development goal and activities of the energy management companies will concentrate on filling up the capacities, improving the sales structure, expand- services, consulting business, service engineering, ing searching for new purchasing sources for raw materi- als and on improving the logistics. Key data for Other Operations ability and production optimisation. The 2 concept of developing this project was carried out, i.e. a 50% increase in production capacities. In strategic raw own our of setting-up a involves project this terms, com a for plants own our supply will that basis material heat and electricity. bined production of Sava Medical in Storitve d.o.o. is the ac main The workers. disabled employing and company training for tivities of the company include: managing real proper service cleaning services, rent-a-car services, safety ty, and other general services. As a company with a dis ability company status, Sava Medical in Storitve d.o.o. primarily employs associates who due to their health on legislation new The employ. to difficult are condition the rehabilitation and employment of disabled workers and occupational health and safety introduced certain 78 ANNUAL REPORT 2011 BUSINESS REPORT Structure ofthefinancialinvestmentsportfolioSavad.d.bydivision profitable, which is why they need be restructured to de low are potentialbutgrowth a havecompaniesthat of be oriented to making investments in shares and stakes willlong-terminvestmentpolicy finished,a divestingis and restructuring of procedure medium-term a After The greatestSava’sinvestmentsand%ofownership re the while price, appropriate at sold be can that investments financial includes process divesting The as tothepotentialsaleofindividualdisposals. market the testing for time same the procedures at initiated needed were the division; the of quirements re investment and potentials development long-term environment, competitive the of analysis an included also which made, was investments financial and real of portfolio strategic the of analysis comprehensive a of individual investments, respectively. For this reason, o slig hs ak wih tre i 21. Besi 2010. in started which bank, this selling for procedure consortium the in participated it and d.d. Vipa Abanka in stake equity 23.8% a has d.d. Sava management ofthisdivision. the and Board Management the by made operations the of analysis thorough a of basis the on made was decision The company. single one into destinations individual Tourism,in from operate Bled) which Hotels Sava and Lendava spa Toplice, Moravske 3000, spa Banovci, spa the with Radenci resort health Ptuj, sort re (spa companies five merge to 2011 in made was decision a performance, and efficiency the increase to accordance In Total financialinvestments Other financialinvestments Mutual funds Rubber Manufacturing Tourism Banks andinsurancecompanies Operations Hoteli Bernardind.d.,Portorož Terme Maribord.d., Abanka Vipad.d.,Ljubljana NFD 1,delniškiVzajemnisklad,Ljubljana Gorenjska Bankad.d.,Kranj with the adopted strategy and in order in and strategy adopted the with des - - - -
ments in the development of new strategic operations. position of Sava and assure financial sources for invest financial the strengthen performance, the improve will effects planned The d.d. Sava of portfolioinvestment veloppotentiala for creating synergies with the existing environment. transaction the of acceptability and selling, case the in liabilities financial in decrease possible a investments, needed additionally without or with profitability the ing increas for suitability,potential profitability,strategic a are: d.d. Sava of assets the restructuring or divesting about decision a making for criteria The conditions. favourable more under selling for an with us will provide which value, their enhance and operations their improve to restructured be will investments maining pend theconsortium sus- and sale joint a of procedure the stop to decided members consortium the report, received the of basis the On Slovenia. in investments making for investors of interest low a and sector banking the in crisis the particularly circumstances, economic present the is outcome an such for reason key The repurchasing. for sale procedure did not lead to receiving a binding offer the expressed interest of certain potential investors the despite that members consortium the informed visor ad the 2011, In procedure. the in advisor their as ING sortium, which chose the international investment bank con the in participated investors 9 another d.d., Sava No. ofshares/unitsassets 37,498,152 1,563,899 1,715,841 131,421 152,110 . % ofownership % ofportfolio 100% 18% 30% 39% 14.6 23.8 45.9 n.d. 6% 8% 9.1
- - - - BUSINESS REPORT ANNUAL REPORT 2011 79 0 68 86 143
-603 -662 -570 Index 2010/2011 € in millions 2011 -156.1 5.5 0.0 -9.5 -4.0 2011 -167.6 -170.7 -156.1 2010 -72.9 8.7 1.6 -0.3 -10.6 2010 -79.2 -79.4 -72.9 27.4 2009 8.1 0.2 -2.8 27.8 25.8 27.4 -11.1 2009 4.6 2008 of Sava d.d. of Sava Business operations operations Business 8.4 0.7 6.6 2.3 4.6 -4.3 12.1 2007 -13.4 2008 7 0 7 50 -50 -100 -150 -200 9.0 2.3 -1.5 14.2 12.6 12.1 -12.8 2007 Business performance SAVA d.d. SAVA Net profit/loss from 2007 to 2011 (€ in millions)
Net sales revenues Other revenues Operating expenses Operating profit/loss Financial result Total pre-tax profit/loss Total Net profit/loss Overview of significant data on the operations of Sava d.d. data on the operations of Sava Overview of significant 7.1. The company Sava d.d. is the parent company of the Sava Group. The plummeting stock market and the aggravated economic environment had a significant impact on the operation of the real and banking sector, thus company The million. €158.1 of amount the in investments financial impair to had d.d. Sava why is which 21%. share of capital in total liabilities to €156.1 million, which lowered the made a net loss of 80 ANNUAL REPORT 2011 BUSINESS REPORT financial investments, receiving dividends and interim and dividends receiving investments, financial selling of time the on depends strongly quarter by d.d. Sava of results business achieving of dynamics The Operations ofSavad.d.byquarterin2011 Operations indicatorsforSavad.d.byyear Total dividendspaidinfinancialyear/averagesharecapital Dividends tosharecapitalratio results fortheyear Net profitforfinancialyear/averageequitylessnetoperating Net returnonequityratio Operating revenues/operatingexpenses Operating efficiencyratio Short-term assets/short-term liabilities Current ratio short-term financialinvestments/short-term liabilities Total liquidassets+short-term receivablesand Quick ratio Liquid assets/short-term liabilities Acid testratio Equity/ fixedassets+investmentproperty Equity offixedoperatingassetsratio operating receivables/assets property +long-termfinancialinvestments Total fixedassets+accrualsanddeferralsinvestment Long-term investmentrate-in% Fixed assets+investmentproperty/ Operating fixedassetsrate-in% deferred taxes)+long-termaccrualsanddeferrals/liabilities total equity+long-termliabilities(incl.provisionsand Participation rateoflong-termfinancing-in% equity /liabilities Participation rateofequity-in%
the quarterlydataofpastyear. with results achieved the compare to reasonable not is it therefore, prices, exchange stock in fluctuations 2007 92.2 79.5 60.2 6.7 3.3 1.5 0.4 0.4 0.0 6.5 9.3 2008 92.8 74.6 54.4 7.2 1.2 1.0 0.3 0.3 0.0 5.8 9.4 2009 84.7 66.1 50.5 7.4 7.9 1.5 0.5 0.5 0.0 6.3 8.0 -22.0 2010 86.4 74.3 42.4 7.7 0.4 0.5 0.5 0.0 9.6 4.4 -64.7 2011 89.4 32.2 21.4 0.0 0.1 0.2 0.1 0.0 5.7 3.7 BUSINESS REPORT ANNUAL REPORT 2011 81 3 0 0 0 0 7 0 6 0 1 0 0 0 4 -4 45 42 -25 -66 -50 -73 653 117 280 536 -274 -973 -907 -674 -123 -530 -217 -188 2011 1,426 1,426 1,146 -1,327 -103,902 OCT-DEC OCT-DEC 0 3 0 0 0 0 1 0 1 0 0 0 0 0 0 1 € in thousands 40 40 -39 -48 -70 -31 529 114 227 415 -147 -630 -778 -118 -185 -188 2011 1,362 1,135 1,363 -1,239 -1,200 -18,437 JUL-SEPT JUL-SEPT 0 0 0 0 8 0 0 0 8 0 0 0 0 -4 14 -33 -56 -46 -67 -35 241 751 252 277 499 -615 -764 -113 -196 -192 2011 1,337 1,060 1,337 6,841 6,600 -1,567 -1,141 -1,085 APR-JUN 0 0 1 2 1 0 0 2 0 0 0 2 0 -32 -26 -81 -91 -36 -55 -34 712 988 245 275 467 -488 -613 -224 -198 2011 1,384 1,109 1,385 7,667 4,411 2,268 -1,342 -1,261 -35,857 JAN-MAR JAN-MAR
Cost of merchandise and material sold and cost of material used used material of cost and sold material and merchandise of Cost d) Financial revenues from other investments 8. OTHER OPERATING EXPENSES 8. OTHER OPERATING c) Operating expenses from revaluation of current assets 10. FINANCIAL REVENUES FROM GRANTED LOANS 10. FINANCIAL REVENUES FROM GRANTED LOANS a) Revenues in domestic market a) Revenues in domestic companies in the Group To associates To 1. NET SALES REVENUES 9. FINANCIAL REVENUES FROM SHARES a) Financial revenues from shares in Group's companies b) Financial revenues from shares in associates c) Financial revenues from shares in other companies a) Financial revenues from loans granted to Group's companies To others To b) Financial revenues from loans granted to other entities b) Revenues in foreign market b) Revenues in foreign 11. FINANCIAL REVENUES FROM OPERATING RECEIVABLES 11. FINANCIAL REVENUES FROM OPERATING To companies in the Group To Group's companies a) Financial revenues from operating receivables due from To associates To b) Financial revenues from operating receivables due from other entities To others To 12. FINANCIAL EXPENSES FROM IMPAIRMENT AND 12. FINANCIAL EXPENSES FROM IMPAIRMENT WRITE-OFFS IN FINANCIAL INVESTMENTS WRITE-OFFS 2. CHANGE IN THE VALUE OF INVENTORIES OF PRODUCTS OF INVENTORIES 2. CHANGE IN THE VALUE AND WORK IN PROGRESS 3. CAPITALISED OWN PRODUCTS AND SERVICES 3. CAPITALISED 4. OTHER OPERATING REVENUES 4. OTHER OPERATING adjustment) (with operating revenues from revaluation 5. COSTS OF MERCHANDISE, MATERIALS AND SERVICES 5. COSTS OF MERCHANDISE, MATERIALS a) b) Cost of services a) Salaries and wages 6. LABOUR COSTS b) Social security cost (pension insurance cost shown separately) b) Social security cost (pension insurance - Social security cost - Pension insurance cost - Pension c) Other labour cost 7. AMORTISATION AND DEPRECIATION EXPENSE, WRITE-OFFS AND DEPRECIATION 7. AMORTISATION a) Amortisation tangible fixed assets b) Operating expenses from revaluation of intangible and 82 ANNUAL REPORT 2011 BUSINESS REPORT • • Operating expenses • • • Net salesrevenues 18. DEFERREDTAXES 19. NETPROFITFORTHEFINANCIALYEAR 17. TAX ONPROFIT 16. OTHEREXPENSES 15. OTHERREVENUES c)Financialexpensesfromotheroperatingliabilities b)Financialexpensesfromtradepayablesandbill companies a)FinancialexpensesfromoperatingliabilitiesduetoGroup's 14. FINANCIALEXPENSESFROMOPERATING LIABILITIES d)Financialexpensesfromotherfinancialliabilities c)Financialexpensesfromissuedbonds b)Financialexpensesfromborrowingsobtainedbanks companies a)FinancialexpensesfromborrowingsobtainedGroup's 13. FINANCIALEXPENSESFROMLIABILITIES
oiie eitos n oprsn ih at year last with comparison in deviations ositive lo 11% were and million €9.5 to amounted re was 34% revenues: sales net of structure influence significantly not did revenues sales or generated, were million €5.5 of revenues
wer thanlastyearaswell25%belowplan. brand name andtheICTservices. the using for subsidiaries by contributed was 66% premises, business for rent from venues ture hadbeenplannedfora successfulsale. expendi which at out, carried not was investment financial greater a that fact the to due lower were on costs. If compared to plan, operating expenses two SavaGroupcompanies. due to the real property used to increase capital of was which rents, the lowering from resulted gure were due to a substantial decrease in depreciati in decrease substantial a to due were Group to companies. d.d. Sava by sales represented them of 81% and sales cumulative of share 4% a only had they Group; Sava the of sales total of level the fi year’s last from revenues sales net of deviation The plan. above 5% and year last than less 46% Net Sales P These The - - - - - • • • Financial result • •
considerable amount of these expenses was due was 49% expenses: operating of structure
on andinterestsloanstotalling €18.7million. milli €158.1 of amount the in investments financial level was significantly influenced by impairments of Their values. planned the from deviated siderably 63% higher than in the previous year and they con were million €184.8 totalling expenses Financial ka Vipad.d.wasnotcarriedoutin2011. sale of financial investments in the shares of Aban- planned The values. planned the and year vious ted, which were halved in comparison with the pre revenues Financial amount of€158.1million. the in investments financial of due impairments the were to plan as well as result year’s last from deviations The million. €167.6 totalled and gative result Financial forcovering these expenses. intended was revenues financial of to managing financial investments, therefore a part ses. labour was expen- other was 5% and write-offs was 9% costs, 37% services, and energy of costs A The
JAN-MAR -30,385 -3,632 -4,424 2,291 2011 -470 -228 -94 53 -4 -1 -1 0 0 0 in the company Sava d.d. was ne was d.d. Sava company the in APR-JUN of €17.2 million were genera- were million €17.2 of -3,719 -5,226 2011 -807 -476 -224 749 757 -26 -6 -6 0 0 0 0 JUL-SEPT -21,497 -3,889 -4,777 2,007 2011 -194 -481 -213 127 0 0 0 0 0 0 OCT-DEC -104,992 -10,584 -5,859 -4,031 9,496 2011 -481 -214 652 0 0 0 0 0 0 - - - - BUSINESS REPORT ANNUAL REPORT 2011 83
------
-1.8 21.6 10.3 -58.1 -11.5 -39.6 result 5-year average Financial Financial € in millions 1.6 -6.3 11.3 -16.1 result -158.1 -167.6 Financial Financial 0.0 in the amount of €6.3 -1.7 -6.3 -18.7 -158.1 -184.8 2011 Financial Financial expenses
in the amount of €2.6 million re 3.3 0.0 2.6 0.0 11.3 17.2 Financial Financial revenues 0.8 -1.4 29.3 -12.9 -95.0 2010 -79.2 result Financial Financial In Deferred Other financial expenses million appeared in connection with hedging aga chan future anticipated the of risk rate interest inst ge in the reference interest rate EURIBOR. Interest revenues ferred to interest from the approved loans to sub sidiaries and to interest from deposits to banks. Interest expenses in the amount of €18.7 million whose 15% increase in comparison with the pre vious year originated from the increased interest com- the of indebtedness to due were which rates, the in rate interest average The creditors. with pany previo the in than higher 16% was system banking us year and amounted to 6.09%. unted for. unted for. counted for impairments of financial investments. acco liability tax income no had d.d. Sava 2011, ac was million €14.6 of amount the in tax
In 2011, Sava d.d. made a net loss of €156.1 million doubled. figure this year previous the to compared and The plummeting stock market and economic the environment significantly impacted aggravated the op erations of the real and also which the banking sector, is why financial investments had to be impaired in the amount of €158.1 million. • pre-tax loss Total In 2011, a pre-tax loss of €170.7 million was made. The amount of the generated loss was influenced by financial expenses totalling €184.8 million whose sub Income tax • • Net loss • stantial part referred to impairments of financial invest ments. 0.0 20.8 39.8 27.8 -10.1 -22.7 2009 result ------Financial Financial 0.6 0.0 6.6 33.2 -12.3 -14.9 2008 result Financial Financial 8.5 0.0 -6.2 -1.4 13.3 14.2 2007 result Financial Financial were due to the dispo of financial investments and loans of financial investment in the sha of financial investment in Del NFD, of financial investment and the loan , which total €11.3 million were signifi red to financial investments in Merkur, Hotels Bernardin, Sole Orto, and other financial invest ments. res of Abanke Vipa d. d. in the amount of €82.5 using by out carried was impairment the million; the of assessment the from limit range lower the financial investment, which is €20 per a share. niški Vzajemni Sklad in the amount of €9.4 milli on. Other Impairment Impairments Impairment Impairment granted to Real Estate companies in the amo- unt of €9.4 million and financial investments in the energy management company in the amo granted to NFD Holding d. d., and impairment of financial investment in Maksima Invest d. d. in total amount €36.4 million. unt of €0.8 million.
impairments totalling €19.6 million refer
------Impairments of financial investments in the amo - cantly lower in comparison with the previous year when dividends of Sava Group’s subsidiaries parent the to paid in were million €17.0 of amount the company Sava d.d. They lagged 23% behind the planned values. Dividends were mainly received from Gorenjska Banka d.d., which is the associa ted company of Sava.d.d. Financial revenues and financialconnection expenseswith securities in sal of securities available for sale and the sale of d. o. o. share in the company Sava Schäfer unt of €158.1 million referred to: Dividends
Dividends Securities Interests Impairments of financial investment financial of Impairments Others Total • • • Financial result by type of activity result by type of Financial 84 ANNUAL REPORT 2011 BUSINESS REPORT • and otherassetsa6%share. 5% short-termshare, a 4% investments a financial had properties investment and assets fixed tangible share; Long-term financial investments had the largest - 85% - Assets structure in thepreviousyear. ssets and liabilities structure It amounted to €410.0 million, which was 27% less than Balance sheettotal 7.2. At the end of 2011, Sava d.d. employed 61 associates, Employee number • Return onequity Movement ofaccumulatedlossSavad.d.in2011 • • Accumulated loss to the end of 2010. The employee number in Sava d.d. compared associates 2 by higher being number their Accumulated lossat31/12/2011 Covering lossfromcapitalcomponentsin2011 Dividend pay-out in2011 Profit broughtforwardfrom2010 Net profit/lossfor2011
the struc the for profit pre-tax total the between ratio total 2011 in loss generated the of part a cover o the last day of the year it amounted to €9.3 mil h aon o €. mlin a ue, s el as well as used, was million €6.5 of amount the in forward brought profit the million, €146.8 ling lion. - return wasnegativeandamountedto70.7%. equity: of balance average the and year financial - which totalled The T On In following significantchangesappearedin2011: on or 23% lower compared to the previous year, the - - 2011, the increases in capital of subsidiaries of capital in increases the 2011, the in subsidiaries of capital in increases
and entered. in the net amount of €4.8 million were approved entered intheregisterofcompanies. were 2010 in approved million €38.2 of amount In The A ture of €348.2 millio
long-term financial investments n and were €102.6 milli - - - , • model oftheSavaGroup. management changes the and company the of tion reorganisa the to due 2012 in reduce significantly will
ratio between the net loss for the financial year
gative andamountedto64.7%. ne- was return equity: of balance average the and components intendedforthispurpose.. capital from covered be not could million €9.3 of amount the in loss the of part A million. €125.6 of reserves capital and million €7.2 of reserves legal million, €7.5 of amount the in reserves profit other ------The ------value of impairments of other financial in financial other of impairments of value mpairments of financial investments in the shares
million wascarriedout. €9.4 of amount the in Sklad Vzajemni Delniški total amount of €29.7 million were carried out. ofNFD Holding d. d. and Maksima Invest d. d. in the amountof€82.5millionwascarriedout. investment in the shares of Abanka Vipa d. d. in unt of€8.9million. amo- the in out carried were companies in Real Estate investments financial of Impairments The Impairment I Impairment Impairments vestments amountedto€19.6 million. the amountof€0.8million. in out carried was company management gy of financial investments in NFD1, in investments financial of of financial investment in financial investment financial of of financial investments in an ener € inmillions -156.1 140.3 -9.3 0.0 6.5 - - - BUSINESS REPORT ANNUAL REPORT 2011 85 - - - - - 410.0 TOTAL ASSETS in the amount of 564.0 26.9 Other assets 18.3 were shown in the amount of €26.9 19.6 term Short- financial investments 70.1 Gross Other to NFD Holding d. d. amounts to €22.4 million it year previous the of end the to compared and suitabi the on based million; €2.0 by lower was gran the for insurances received of estimate lity of amount the in impaired was loan the loan, ted €6.7 million. amount of €3.9 million mainly referred to short- term loans granted to Sava Group companies deposits to banks. and short-term 348.2 loan approved short-term from receivable short-term financial investments in the - - Short-term Short-term financial investments - - Other assets million, the largest part or €25.1 million referred to deferred receivables due from the state. Deferred im with connection in arose mainly receivables tax €19.6 million were €50.5 million lower than in the previous year. The most important change was a ca called-up short-term for receivable a of transfer pital totalling €38.2 million under financial invest ments in subsidiaries. fair value. pairments of financial investments to term Long-
financial
investments • • The structure of short-term assets is as follows: The structure of short-term 480.5 - 15.3 property Property. Property. plant and equipment investment 24.8 0 700 600 500 400 300 200 100 tangible fixed assets and investment and assets fixed tangible 31/12/2010 31/12/2011 Other the amount of €5.3 million were mainly due to accordance in out carried were that revaluations policies. with the accounting SAVA d. d. SAVA Assets structure at 31/12/2011 and a comparison with 31/12/2010 (€ in millions) net increases of financial investments in - property amounted to €15.3 million at 31/12/2011. In comparison with last year it decreased by €9.5 office main the of sale the to due was which million, in lot parking and land accompanying the building, the premises in Kranj to Savatech d.o.o. The - of value
In the balance sheet of Sava d.d. as at 31/12/2011, a IP Sava subsidiary the in investment financial the of part d. o. o. in the amount of €19.3 million, for which a sell ing procedure is in progress, was shown under short- investment financial The sale. for available assets term in the subsidiary Sava Medical in Storitve d. o. o. shown is under short-term assets available for sale too, d.o.o. as in 2012 it will be sold to Savatech • 86 ANNUAL REPORT 2011 BUSINESS REPORT • Liabilities structure million remaineduncovered. €9.3 of amount the in loss the of part a purpose, this for earmarked components capital with covered was million €146.8 of amount the in d.d. Sava of loss *The
- - The share. Thechangesincapitalwereasfollows: 21% a had it structure liabilities the in year; vious pre- the in than lower 63% or million €151.5 was - - revaluation reserve from revaluation increa revaluation from reserve revaluation of the amount in year financial the in loss (€ inmillions) with 31/12/2010 a comparison at 31/12/2011and Liabilities structure SAVA d. €156.1 million*wasmade. The A sed by€4.6million. of Sava d.d. totalled €87.7 million and million €87.7 totalled d.d. Sava of capital 31/12/2011 31/12/2010 100 200 300 400 500 600 700 0 239.1 aia Long-term Capital 87.7 - 179.7 the assetsofSavaTurizem d.d. on million €5.1 totalling mortgage a and million, €34.6 totalling .o.o. d Savatech subsidiary of assets the on tors in the amount of €277.2 million, placed a mortgage credi- of favour in d.d. Sava of assets the mortgaged d.d. Sava loans obtained the from Toliabilities secure • •
liabilities
share. 3% a had they structure liabilities the in change, son with the previous year they did not significantly compari In receivables. tax deferred and visions pro- long-term and liabilities operating short-term to referred million €13.0 totalling liabilities Other d.d. obtained outside of the Sava Group. liabilities included loans of €290 million, which Sava 76%sharethe inbalance sheet total. Total financial lastyear they were lower by€5 million. They have a period same the to compared and million €309.3 Total liabilitiesfinancial 44.0 144.2 Short-term liabilities 276.8 1.0 liabilities Other of Sava d.d. amounted to amountedd.d. Sava of 1.5 564.0 LIABILITIES TOTAL 410.0 - BUSINESS REPORT ANNUAL REPORT 2011 87 ------Sava The The The A Sava cash flow, which willcash beflow, sufficient for covering total plan. liabilities as determined in the business will amount to €563.4 million at the end of 2012, or 8% less than at the end of 2011. amount to €159.5 million, its share in the balance sheet total will amount to 28%. a total loss of €4.9 million; in the Group structure, make will and successfully operate will subsidiaries com parent the d.d., Sava million. €10.1 of profit a pany of the Sava Group, will show a profit of €2.4 million in individual financial statements, which in cludes revenues of €17.4 million generated in the relation to Group companies; these do not have a character of revenues in the consolidated financial statements. unt to 2,132 at the end of 2012, or 124 less than at the end of 2011. Touri and Manufacturing Rubber for mostly ments, sm. Group companies will achieve the value of Group Sava the of total sheet balance planned will 2012 of end the at capital of value planned amo will Group Sava the in number employee invest for earmarked be will million €13.0 of sum with 2012 year the end will companies Group
• • • • • • The 2012 business plan considers the same structure of the Sava Group as it was at the end of 2011. significantly be can 2012 of result operating actual The different and will mainly depend on the speed and ef fectiveness of implementing disinvestments, which in 2012 are being carried out with intensity. Outlook Outlook for 2012 - 8 liabilities of Sava Group companies will sidiaries shall be sufficient for covering financial expenses, planned investments, amortisation repayment loans, and in of Rubber Manufacturing d.d. also for payment of dividends to Sava Sava In Financial Effective The None Financial The of €205.9 million, which is 6% more than generated than more 6% is which million, €205.9 of in 2011. Sava d.d., will be sold to a company of Tourism; the Tourism; of company a to sold be will d.d., Sava merged company Sava d.d. Turizem will become an economic entity. will be decreased. be reprogrammed in accordance with the proposal the with accordance in reprogrammed be for restructuring finance resources. be merged in one company. with a loss. the present contractual interest rates. Group companies will make sales revenues 2012, the volume of operations of Real Estate 1 January 2012, companies Tourism will by owned are now until which capacities, hotel of the operations of the Group may operate to regard due with planned are expenses generated cash flow from operations of sub
business plan of Sava Group companies for 2012 were as follows: The 2012 business plan in figures: • • • • • • • • ints set out in the restructuring strategy of the Sava Group. The renewal of the strategy and the management management the and strategy the of renewal The Group. Sava the of strategy restructuring the in out set ints model was imposed by the effects of significant financial investments, the need for strengthening the cash flow and the needed decrease in financial liabilities to the level that can be maintained with the cash flow of of part important an represents Group Sava the of liabilities financial of reprogramming The Group. Sava the the whereas strategic financial policy, liabilities can be decreased through selling financial investments. The results achieved in 2012 will particularly depend on how efficiently the planned divesting of financial invest out. ments will be carried More important premises in the preparation of the The business plan of Sava Group companies for 2012 was prepared with taking into account the starting po starting the account into taking with prepared was 2012 for companies Group Sava of plan business The 88 ANNUAL REPORT 2011 BUSINESS REPORT the leadingpositioninworld’s marketniches. achieve and customers with relationship our build we which on basis, the are services and products quality high- and service after-sales excellent an Innovation, tion of the Sava brand and its position in these markets. recogni- the consolidating thereby East, near the and In USA. Asia in presence our intensify to continue will we 2012, the and Europe in especially shows, trade specialised numerous in products our exhibited We intend todevelopinthefuturetoo. we which Africa, and Asia America, South of markets ropean and USA markets, and entered the fast growing We established cooperation beyond our traditional Eu and environmentalprotection. actions rescue medicine, sources, energy renewable including fields, new incorporated projects velopment processes in the existing product upgraded groups, while our de- and products new developed We million. marketing of new products whose sales exceeded €14 on placed was emphasis great A million. €3.4 over of revenues sales generated and customers new 300 to In 2011, we began to market our products and services by Slovenia with slightly less than one fifth of total sales. followed was and sales, total of quarter a almost with all continents. The German market was the largest one Our products and services were sold to 91 countries in fication ofsalesportfoliowerecorrect. with the development and marketing as well as diversi This result is a proof that decisions made in connection company.the of history the in ever result best the was which million, €110 to close achieved d.o.o. Savatech of services and products sold of Totalvolume work. grammes ofSavatechd.o.o.andtheforeigntradenet pro all in greater were achievements sales year, ous previ the to regard With Manufacturing. year Rubber successful for a was 2011 marketing, of terms In Rubber Manufacturing were carriedouttostrengthentheidentityofourSavaandHotels&Resortsbrands. increased and our sales network was expanded beyond our traditional markets. Marketing activities We continued to develop higher added value products and services. The number of our customers 9 9 - - - - - customer orientation Marketing and active membersjoinedthis programme. 12,000 2011, of end the Until loyalty. guest courage en - to Ambassador Resorts & Hotels Sava gramme pro loyalty new a launched we June, In guests. new attracting and guests existing the keeping fo on cused activities The destinations. individual by offered services of sale the promote to and Slovenia, in chain tourism largest the as Resorts & Hotels Sava brand umbrella the of appeal and recognisability the create to was strategy marketing-communication of goal The tion withourpartners. out the so-called co-branding campaigns in collabora- carried and season low a in network trading the with stays. To promote overnight sales, we increased our cooperation of number the in growth faster a by for ed compensat was which price, average the in decline a service providers in the domestic market, we registered tourist among competition price fierce a of result a As age price. aver the and overnights of number the increased sion was encouraging. In foreign markets, the Tourism divi decline, a registered past the which markets, ditional tive markets. However, a repeated growth in certain tra- emit important certain to airways cancelled carrier air economic factors and the fact that the Slovene national general the to due was which markets, traditional the from guests of number decreased a from resulting shortfall revenue a compensate to managed we this, doing By Balkans. the in and Europe in markets new certain in particularly results, desired produced cies, agen of network partnership of expansion systematic a incorporated which approach, aggressive more A hotel overnightsegment. the in achieved was increase greatest The modation. accom of types all in overnights surpassed Tourism destinations, tourist between competition fierce a and crisis economic the of impacts negative the of spite In Tourism
------BUSINESS REPORT ANNUAL REPORT 2011 89 - - - - -
Other Operations – energy The marketing activities of Eneregetika Sava mainly focused d.o.o. on buyers of fuels made from timber biomass. In the case of the already installed adapt remote on especially concentrated we systems, heating Real Estate prem- business larger marketing, efficient the to Owing ises were sold in the building Modri Kvadrat in Ljublja- energy-sav and modern of area residential the and na, completed. was Kamnik at Perovo in houses family ing architects their which for area, residential this Presently Chamber Slovene the by award Pen Golden a received Space, is still being marketed. of Architecture and the in crisis financial the of effects the where Croatia, In property market were more dramatic than in Slovenia, the sale of all buildings that we built in Zagreb was fi nalised. In planning of buildings we devote much attention to the location of the future its property, architectural de sign, the quality of installed materials and performed works, and we listen to the desires and requirements of our customers. We identify customer requirements we which at research, marketing of way by desires and make use of questionnaires and systematic interviews with the present and potential buyers, using the so- called focus group method. A great deal of assets earmarked for marketing is in vested in the production of efficient the in and advertising in and projects multimedia individual for websites web portals specialised in real property and other web search machines. management and products energy the between relation price the ing the sold heat energy. With the manufacture of refined timber biomass in the Republic of Serbia, we carry out the strategy of introducing the supply from domestic alternative energy sources in this region.
- - - - - anniver th The innovation and appeal of Tourism’s reaffirmed offer in various were ways during 2011. Sava’s tour ist destinations became a member of one of the most prestigious health and wellness services tions worldwide, organisa FEMTEC, and obtained a FEMTEC acknowledgement for the development of thermal spa a awarded was Bled campsite The Slovenia. in tourism Eu in campsite best the as award European renowned par 6,000 of out five best the among ranked and rope, ticipating campsites. An innovative ecological village of forest villas in the campsite Bled was presented in Market the in World London. Tourism The 80 Upon establishing a uniform company Sava Turizem d.d, marketing and sales were further centralised to sary of the Bled was Grand marked Hotel with Toplice We campaigns. sales thematic and events of number a received a golden plaque by the Municipality of Bled and an for many years of tradition in the hotel industry, acknowledgement by the Tourism Catering Chamber quality the for Commerce of Chamber Slovenian the of of services and development of innovative tourist offer. of impressions positive and results sales achieved The championships rowing world the closing upon athletes in Bled confirmed that the employees of Sava Hoteli Bled d.d. organised and carried out this demanding project excellently. increase their efficiency.
Marketing and and Marketing customer orientation customer 90 ANNUAL REPORT 2011 BUSINESS REPORT r, hc as icroae a osset settl consistent a incorporates also which ers, suppli with links strong building and requirements the forecasting of way by managed were risks Purchasing fer eversince2010. record prices the demand has been surpassing the of sector,this the in despite used and material raw major a is rubber EPDM decreasing. price slower of period a and drop price a by followed was year,which the of beginning the at grew rubber natural of price The cals. chemi- rubber,certain synthetic and with black carbon supply the of characteristic were prices rising and als materi- in shortage industry,A turing rose. significantly manufacturing of raw materials for the the rubber manufac- for component basic of the form prices which the monomers, prices, oil high the and in industry capacities chemical production reduced the to Owing finished productsandservices. of prices the to them transfer to managed mainly we Rubber in used but 2010, with comparison in increased Manufacturing materials raw rubber of prices The only withasmallernumberofrawmaterials. cline in demand, but the price trend turned downwards de a of account on improved manufacturing rubber for materials raw of offer the quarter third the of end ability and soaring prices of raw materials. Towards the avail low a was market the of feature basic The high. rather were materials raw rubber of prices the 2011, In Rubber Manufacturing and fruits. the select Slovene wines, as well as season vegetables ism companies give priority to local food products and Tour Union. European the in purchased is materials chased in all continents, however, the major part of raw Raw materials for Rubber Manufacturing are being pur one of the factors we consider in the selection process. is suppliers of part the on responsibility environmental and Social time. same the at price best the for quality high a assure and aspects, supply all of planning and in the forefront as they lead to a common development In selecting suppliers we put the strategic partnerships markets Select was Purchasing transferred tothelevelofcompaniesin2012. Strategic centre competence previous the of operation the model, management Group's decentralised a of introduction the With pressures. the despite that and year last had it levels prices same the almost keep to Tourismmanaged management, central and policy purchasing common the on Based Rubber manufacturing had to deal with a low availability of raw materials and soaring prices of raw materials. ion ofsuppliersandsupply 10 10 ement ------and suppliers Purchasing majority of our supply with the goods and services which is done. in market, supply main the still is Slovenia surpass onehalfoftotalenergycosts. which electricity, of costs the had share greatest The 2011. in 6.2% by up went products energy of costs The year. previous the in as level same the almost at cles, Tourism companies managed to keep their prices arti aforementioned the for prices entry the on sures pres Despite 2011. in grow to continued exchange stock and markets world the in products energy and consumables beverages, articles, food of prices The we intendtofollowinthefuture,too. tion to supply costs management and this is the policy contribu important an made companies tourism vene Sava’s hotel purchasing network and certain other Slo- within links established the and merger The too. field this in effects positive achieved and areas particular supply comprehensively to able suppliers a of selection with proceeded We savings. significant realising thereby agreements, joint and market the in ap pearance coordinated a management, supply centralised a of way by risks market reducing are Tourism,we In Tourism of themergedcompanySava Turizem d.d. operations the affect will which continue, will ventories in- small and assets fixed products, energy sumables, con beverages, food, of prices the on pressures The materials priceswillriseinthe futuretoo. raw rubber that anticipated is it why is which markets, Asian growing fast the in compensated than more be will Europe in demand declined a that expected is It are uncertain. for2012 forecasts The macro-economic Further price increases are expected suppliers. several of policy purchasing out carried we risks, mise mini to order In safety. delivery and quality same the of but criteria low-price the to according sources als inventories. We have introduced alternative raw materi high of policy the out carried we low, was global availability the which in materials, raw of segment the In payment termsandconditions. agreed the with accordance in liabilities contractual of
------BUSINESS REPORT ANNUAL REPORT 2011 91 ------
Tourism Professional quality management teams made com were Resorts & Hotels Sava of sure standards the that plied with and the best practice cases among Tourism associates 18 another 2011, In transferred. companies were trained as internal auditors. 169 internal auditors are now trained in total who are able to carry out au dits in conformity with the quality management system SIST EN ISO 9011:2008, and the food safety manage ment system SIST EN ISO 22000:2005. 83% or 140 in- the At training. annual the in participated auditors ternal beginning of the internal year, audits were carried out as scheduled in the annual audit plan. 2011, beginning of June the end of May and the At the joint a conducted Veritas Bureau company certification certification audit of the quality management systems quality the that evaluated and companies Tourism all in management safety food the and system management requirements the with compliance in both were system of the SIST EN ISO 9001:2008, and the SIST EN ISO 22000:2005 standards. for invitation national the of results the 2011, January In the business excellence according (EFQM) organised by the Republic of Slovenia were Hoteli announced. Bled d.d. Sava and Ptuj Terme d.o.o. participated in this contest; in the category of companies with more Bled Hoteli Sava sector, private in employees 250 than Metrol the by diploma bronze a with awarded was d.d. ogy Office of the Republic of Slovenia at the Ministry of Higher Education, Science Based and Technology. team, evaluation the by given recommendations the on them of most implemented and projects 11 outlined we already in 2011. harmonised are Tourism in facilities accommodation All with the requirements of hotel categorisation legisla tion. Owing to quality improvements, the hotel Izvir in the health resort Radenci was upgraded to a four-star hotel in 2011. All a having hotels Hotel or Cycling Trek king Hotel meet designation the criteria defined as the marketing standards for this category. In December 2011, the hotel Zeleni Gaj from the spa resort Banovci was classified under the hotels with this designation too. the year Throughout the of quality hotels and ser vices was assessed in with accordance our evaluation technology developed in-house and 56 check-ups in total. in out carried were capacities accommodation our Quality Quality systems
------11 Rubber Manufacturing achieve the To strategic goals in Rubber quality, Man ufacturing companies maintained the already duced standards, intro which regulate their business pro cesses: SIST EN ISO 9001, SIST ISO/TS 16949, SIST CE Conformity, of Certificate 211 AQAP 17025, ISO EN mark for products, and others. The audits by customers and certification tions according to the SIST ISO/TS 16949 standard organisa for the GTI Moulded Products programme, SIST EN ISO 17012 for testing and the the Central stan Laboratory, dard SIST EN ISO 9001 in the case of all grammes or companies were passed with success. other pro- As regards the quality area, the processes documentation were standardised, and education and and the training courses for employees were organised in or manner the upgraded We goals. set the achieve to der of monitoring and analysing the main quality indica tors, and introduced new work methods, particularly in the process supervision and analytics, to improve the stability of processes. As part of the continual im provements programme and our business, we continued with the excellence-driven activities that are as- system. sociated with the 20 Keys 0.14% by were quality poor from originating costs Total lower than in 2010, thus we saved €110,000. This de- crease was mainly due to reducing total spite scrap; a de 15% increase in production and a significant increase in productivity, the quality of products 98.76%. i.e. year, previous of the level the at preserved was With regard to 2010, total scrap was lower by 0.91%. ducts and services as well as the After operations the are management of model high was quality. decentra companies. the of level the to transferred was Systems Quality centre competence the of operation the lised, strategic policy of Group’s companies. form a significant part of the future Quality and excellence Sava Group companies have many years of tradition in conducting business in accordance with the policy of quality and excellence, and verify the compliance of operations by the international quality management standards. All which Group companies follow the common policy, defines that various approaches are encouraged and prac in excellence and quality high reach to developed Long-time tradition of quality Long-time tradition to excellence and orientation Sava Group companies successfully passed the scheduled audits. The quality indicators reaffirmed that pro that reaffirmed indicators quality The audits. scheduled the passed successfully companies Group Sava tice. Sava Group companies devote their special at good of transfer to and education employee to tention this field. national and international practice in
Purchasing and suppliers suppliers and 92 ANNUAL REPORT 2011 BUSINESS REPORT • • were carriedout: In 2011,thefollowinglargerEUprojects of SavaGroupcompanieswiththeenvironment. cooperation the for and network, knowledge the in ing involv for basis improved an prepare and link to aged occupational health and safety. By doing this, we man of promotion the for projects 7 prepared we partners the with Together member. network supporting a as projects numerous in cooperated we and area, rural of development in project 1 protection, environmental gies areas, 14 projects in the HR area, 2 projects in the technolo- leading in projects 4 services, tourist of tion promo the for projects 5 prepared We approval. for evaluated being still are projects 11 approved. were €248,052 of amount total in projects the of December, end the By million. €1.582 of amount total in sets as the for applied We partners. the with cooperation in prepared were 7 while independently, out were carried 33 which of projects, 40 prepared we 2011, In protection andsocialresponsibility. ucts and services, energy management, environmental investments, namely in the HR area, promotion of prod- greater request not did which projects, the for funding of acquisition the to oriented mainly was It ronment. envi- business changed centre the to competence adapted Projects the EU of operations the 2011, In Projects were transferred to the level of companies. and drawn, EU centre competence previous the of were operations the 2012, In acquired. millionwere grants of million €9.44 further€12.4 that sure made and projects, 200 than more prepared Projects EU centre competence the 2011, to 2005 from period the In €248,052. of amount the in funds received we year the of ments.In 2011, we prepared 33 projects, applied for funding in the amount of €1.582 million, and by the end We have oriented ourselves to the acquisition of funding for the projects, which do not request greater invest
ihn h lfln lann porme n the and programme learning lifelong the ithin the lifelong learning programme and its sub- University ofPrimorska. Tourismof of FacultyStudies the with cooperation partnership the in workers tourist of development the for IP-CAT « and technical-technology knowledge; business and ecological, of developers mentors, of development tourism; the in for EcoTech-SAVA associates competent – mentors of development further for MENTTOUR projects: tive innova - three another out carry to began and ding fun- obtained We abroad. exchanges knowledge Tourismwith in development mentor in VETTOUR called project innovative an finalised and out ried programme Leonardo da Vinci – Mobility, we car we Mobility, – Vinci da Leonardo programme u-rgam Load d Vni Innovation – Vinci da Leonardo sub-programme W Under 12 12 - - - - - EU projects of assets for developing the Sava Group in the tematicwork inthis area will assure significanta source sys Project.A EU Project, anEachvision mentingthe nies of the Sava Group. We are further striving for imple compa individual to directly operations itstransferred and restructured Projects EU centre competence the 2012, of beginning the in model managementtralised decen a introducing and d.d. Sava reorganising By • • • • •
Sft, e rprd ee poet fr Sava for projects seven prepared we Safety, in Camping Glamorous project the acquired e s at f h H Dvlpet prtv Pro Operative Development HR the of part s ca and o. o. d. Savatech for funding obtained e we Primorska of University the with cooperation employment cycleofanindividual. life in incorporation health-friendly of system the with deals which Fit4Life, project the prepared we programme, this Under manufacturing. rubber of knowledge the validating already is which out, ed T Work was carried out for Sava d.d. of WayImplementingTraining forbyEmployers to gramme2007-2013,RSof projecttheIncentives of structure. Infra- Traffic and Environmental of Development the for Programme Operative the under industry the in project energy of use efficient the out rried Development. and Growth for Health and Aware; and Healthy re; Off Illness; Health For Success; Action for the Futu- althy and Committed; Work Out Every Day to Fight TodayHealthy 2012: and 2011 Tomorrow;and He in projects promotion health the co-financing for Institute Insurance Health Slovene the of invitation public the with accordance in companies Group the beginningof2012. lopment Fund, which will began to be carried out in Deve- Rural European the of framework the within Gorenjska – Glamping by the LEADER programme ve ExercisestoRelievePains intheLower Back. Preventi- of Development the and Functions Body Stabilisation Neuromuscular of Evaluation project denci d. o. o., and started to carry out the research Ra Zdravilišče company the for funding obtained In W A W In ransfer, the project e-Rubber validation was carri was ransfer,validation e-Rubber project the
future too. ------BUSINESS REPORT ANNUAL REPORT 2011 93
- - the ROS system to support the intro T V Cooperation in the loyalty card project. Updating central sales department of Tourism. companies merger in Sava Turizem d.d. companies merger in Sava Turizem duction of uniform sales processes in the merged company. echnical support in the call centre project in the arious activities in IT under the project of tourism
• Tourism: Tourism: • • • At the beginning of 2012, the competence centre ICT restructured to an autonomous d.o.o., company which provides its Sava services to IT all Sava Group companies. Its role is to introduce modern IT solutions and to pro Group Sava of functions business the support actively its sell will it future the in that expected is it companies; IT services to the external users too. equipment. Furthermore, it assures stability, availability safety, and efficient functioning of IT services to all Group’s companies. Information Information support - - 13 of work hour registration system, of an internal ICT auditor function in of additional IT solutions to optimise of the ICT strategy of the Sava Group ling with the IT system modernisation in the central laboratory. les and production capacities planning. Modernisation Support Preparation Support P Introduction Preparation Change the warehouse processes. including an electronic approval of absence, days in their HR data. and employee insight off, cooperation with Internal Audit. showed that Sava’s information system, is being properly managed in view of security. for the period 2011-2015. restructured to an independent company.
in the modernisation of the system for sa to the implementation of the project dea erformance of external security checks, which in providing the ICT services upon being
• • • • Rubber Manufacturing: • • • • Sava d. d.: In 2011, the following major projects were In 2011, the following implemented: The expansion of the IT capacities, standardisation of IT solutions and their perfection all resulted in the optimised work processes and a more efficient implementation of work procedures in all divisions. After Sava After divisions. all in procedures work of implementation efficient more a and processes work optimised Sava IT d.o.o. to an independent company the competence centre ICT restructured d.d. was reorganised, IT is centrally managed for all Sava Group companies; entire the of development the directs and coordinates it software of share major a ensures and infrastructure IT
projects EU EU 94 ANNUAL REPORT 2011 SUSTAINABLE 2011 REPORT ANNUAL DEVELOPMENT
95 96 ANNUAL REPORT 2011 SUSTAINABLE DEVELOPMENT *In 2011,Savad.solditsremaining 50%shareinthiscompany amounted to11.4%,andwas lowerthanin2010whenitamountedto13.0%. In 2011, 260 associates were employed anew, while 261 associates left. In 2011, total fluctuation in the Sava Group Employee numberintheSavaGroup ates employed,whichwas1.3%lessthanin2010. 2010. On the last day of 2011, there were 2,256 associ 2,290 in than less employees employed 37 or average, on companies employees Group Sava 2011, In Average employee number number ofaccidentsandwork-related injurieswasreducedagain. the awareness, raising and actions preventive on Based changes. these of performance in employees ting incorpora and communicating to devoted was attention of lot a place, took strategy restructuring of aspects other as well as consolidation, personnel and reorganisation the introduced. teams, management the in were changes When Enterprise Family-Friendly the under measures New competences. and knowledge yee emplo of continual upgrade a to oriented is which implemented, was capital the HR managing of The policy 1.1. SAVA GROUPTOTAL Ensa BHd.o.o.,Srbac,BosniaandHerzegovina Energetika Savad.o.o.,Kranj GIP SavaKranjd.o.o.,Ruma Sava MedicalinStoritved.o.o.,Kranj OTHER OPERATIONS Sava IPd.o.o.,Ljubljana REAL ESTATE Terme Ptujd.o.o., Terme Lendavad.o.o., Zdravilišče Radencid.o.o., Terme 3000d.o.o.,MoravskeToplice Sava HoteliBledd.d., Sava TMCd.o.o.,Kranj TOURISM Foreign Trade Network Sava Rold.o.o.,Zagreb,Croatia Savarus d.o.o.,Jaroslavl,Russia Savapro d.o.o.,Kranj Sava-Schäfe, d.o.o.,Kranj* Savatech d.o.o.,Kranj RUBBER MANUFACTURING Sava d.
and employeedevelopment HR structureindicators
1 1 - 31/12/2010 Employee management HR other companies10%oftotalemployeenumber. and 39%, companies Manufacturing Rubber number, employee total of 51% employed Tourismcompanies number . 2,286 1,180 127 902 128 108 212 370 339 793 18 59 42 81 18 23 37 10 23 39 3 1 / 31/12/2011 Employee number 2,256 1,158 130 882 123 109 201 366 339 810 18 61 50 83 18 20 37 10 24 3 1 1 / 2011/2010 Index year 102 100 103 102 100 100 102 100 101 100 100 100 104 102 98 98 98 96 95 99 87 / /
number in 2011 employee Average 2,290 1,196 129 886 127 110 213 373 353 814 18 60 43 83 18 20 37 10 24 3 1 1 /
- - SUSTAINABLE DEVELOPMENT ANNUAL REPORT 2011 97 3% 0.9 level of - educa 19% th 27% 60 ...60 years
- 3%
24.6 2% 50 51
-
level of education or higher. or higher. level of education 33.8 th 14% 40 41
26% - 6%
26.9 56,3 % 30 31
-
13.5 education, 6% of employees had a 6 tion and 1% had a 7 tion and 1% had a 21
level 0.3 to 20 rd level of th 0 5 40 35 30 25 20 15 10
and 5 th level - Master’s and Doctor’s degree th level - primary school level - up to 2 years at vocational school level - technical college level - higher and university education & 9 - at least 3 years at vocational school level - at least 3 years at vocational school level - secondary school level - incomplete primary school th th th st nd rd th th 4 2 3 1
7 8 6 5 SAVA GROUP SAVA Age structure of employees at 31/12/2011 ( %) SAVA GROUP SAVA of employees Educational structure at 31/12/2011 Employee educational structure educational Employee More than one half of employees were older than 40 years, 13.8% of employees were younger than 30 years, and 26.9% of employees were between 30 and 40 years. Age structure of employees In 2011, the educational structure of employees improved slightly. 25% of employees had a 3 of education or lower, 53% had a 4
management HR HR 98 ANNUAL REPORT 2011 SUSTAINABLE DEVELOPMENT Utilisation ofworkinghoursandsickleave hf Oypc, n nmru ohr competitions other numerous and Olympics, Chefs Bogričijada, Meeting, Tourism Catering the as such competitions catering various in competitions; cialised ployees in Tourism are encouraged to take part in spe- ed: 535 of them received the Model Worker award. Em award were workers successful most the too, 2011 In lowance of€1,066.90. al holiday a received companies Manufacturing ber Rub- in employees the whereas €1,054.80, of lowance year.previous the in al holiday a received Employees than higher 9.7% was and €1,468 to amounted Group Sava the in salary average the 2011, year.In previous mass the in than salary less was which 2011, in 4.2% to the amounted in part variable in percentage age aver The 2011. in vertically or horizontally promoted were associates 527 salary basic in increase an With petitive power. com- global its enhance and environment social the in reputation company’s the grow contentment, their commitment and their loyalty to the company, enhance employee reaffirm we motivation, of types these Using feedback. and commendations informal as well as ing laboration in demanding projects, education and train Sava col rewarding, in promotion, as such companies Group employed are systems motivation Various Motivating andrewardingemployees serving employeehealth. improvements in working conditions, which aim at pre- to attention much devote Wenumber. employee total of 6.3% represented which status, disability a with ees At 31/12/2011, the Sava Group employed 141 employ Disability issues (1.9% in2010). 1.7% to amounted and decreased days 30 exceeding leave sick while 2010), in (2.6% 2.8% reach to creased in days 30 to up leave Sick 4.5%. to amounted and level 2010 the at remained level leave sick the 2011, In of totalworkinghours). working hours (in 2010: 37,515 overtime hours or 0.8% companies 19,867 overtime Group hours were performed, or 0.4% of total Sava all In year. previous the on improvement point percentage 0.8 was which 81.8%, to amounted hours working of utilisation the 2011, In ------for outstandinginnovationproposals. who give most proposals and presents special awards teams and employees those rewards and innovation encourages Group Sava The places. three first the of any for Weprizes money high. award rank always they ok f h Rbe Mnfcuig col Anot School. Manufacturing Rubber the of work frame the within technology manufacturing rubber of knowledge the transferred and experts, foreign and tic of developing expertise in cooperation with the domes - process the continued Manufacturing Rubber 2011, In workshops on interpersonal and communication skills. of Management programme, managers participated in School the of part a As managers. the with laboration plans with the action aim of enhancing devised employee loyalty and in col- issues HR current the with dealt specialists HR which in held, were workshops internal Tourism, in managers the For fields. specialist ticular par from associates of exchanges several-day of way good practice transfer between the companies also by encouraged We desks. front and service booking the in associates the for courses training held they tions, work procedures, respectively. Based on these instruc and work for instructions of preparation the in viders pro- service external the from support the enjoyed eas ar aforementioned both from associates of consisting teams The service. waiting and desk front the in edge knowl specialist of development the in investments Tourismmade the we of School, framework the Within basis. ongoing an on held various are workshops specialised and classes language Foreign desks. front and service booking departments, sales in employed associates of techniques sales as well as coaching, and in skills training management developing employee on for was Tourism focus major the 2011, In development ofindividualcompaniesanddivisions. strategic the with balance in development career and tively, and on the other hand it promotes their personal the one hand facilitates that our associates work on effec which development, competences and quisition ac- knowledge for need the supporting thereby cess, pro education the in employees their integrates and courses training various organises Group Sava The of employees Education, traininganddevelopment
her ------SUSTAINABLE DEVELOPMENT ANNUAL REPORT 2011 99 - - - -
riendly Enterprise project F Family- After obtaining the basic Family-Friendly Enterprise certificate in 2007, the Sava Group obtained a full cer tificate after it effectively introduced certain measures in December 2010. On this basis we have decided to apply for an extension of the certificate for the next three year period, which is why five were adopted. new measures In 2011, all these measures were already introduced. We offered parents - our employees – to utilise a 12- hour bonus in the week they introduce their child in a seaside the at holidays Free time. first the for care daily were arranged for the children of parents employed in one of Sava Group companies. Associates receive a gift voucher for their new-borns. We grant scholar ships to children of our employees who passed away, by way of which we not only financially alleviate their housekeeping but also provide for their education. In we prepared December, a holiday season’s party with a theatre performance and a gift for children. We We strengthened the forms of interpersonal commu- nications. The associates in all of our companies can directly communicate with the management. In meetings the of workers’ representatives, current issues are dealt with, which relate to all employees, the de cisions are made and business processes explained, questions can be asked, initiatives and proposals are we organise given. assemblies At to least once a year, inform employees about the operations of the compa- nies and other topics of interest. as intense particularly was communication the 2011, In of meetings the in participated representatives workers’ the new Management Board, the new management in d.d., and in the presentations of the new Sava Turizem restructuring strategy for Sava d.d., which and reassignments too. An open communica lay-offs included tion contributed to a high level of understanding of the significance of changes and resolving of questions as they appeared, as well as good cooperation between representatives. the management teams and workers’ ------In 2011 too, we devoted much of our attention to inter We We are in favour of an honest and fair communication and concern for employees to enhance their satisfac tion and motivation. nal means of communication : Sava leaf newspaper, lets Informator and Savček, notice boards, e-mail, the internet and the intranet. Internal communication project is in progress, which is called Work Instructors Based workers. floor shop of training for suitable is and on quality teaching materials the project will be effi safe occupational of issues the addressing Workshops Prepa- Plan Business for Programme the 2011, June In included which project, Academy Sava the under ration 15 associates from the entire Sava Group, was com the by co-financed are area HR the in projects Training European funds and by the assets acquired in various calls for applications by various Slovene institutions. Vinci da Leonardo the under project mobility the Within programme, the associates from participated Tourism in specialised training courses abroad, on the occa In 2011, the average number of training hours per em ciently introduced; they will not only be used in giving lectures but will also help the instructors at developing knowl of transfer efficient an for needed skills own their workers. edge to shop floor ty, the quality of services, product and processes are year. the throughout Group Sava entire the for organised pleted with success. After several months of training, the participants drew up four business plans, which subject to business plan assumptions can be imple- mented within a certain period of time. sion of which they gained knowledge of best practice cases and are now able to efficiently transfer them to their respective working environment. ployee amounted to 44. A sum of €134 per employee We classes. training of organisation the in invested was support and invest in formal and informal education. Total number of associates who in 2011 participated compa Group Sava by financed study part-time the in nies amounted to 64, which was less than in the previ ous year (2010: 87 associates). 100 ANNUAL REPORT 2011 SUSTAINABLE DEVELOPMENT these activitiesarereportedaboutinanopenmanner. that sure make and environment the on impacts mise provements in occupational health and safety, to mini- im- introduce continually to itself commits programme This certificate. Care Responsible a holds and Care Responsible industry chemical the of initiative untary Savatech d.o.o. is incorporated in the international vol- ment Systems,OHSAS18001. Manage Safety and Health Occupational the is based management safety and health occupational the to approach systematic a companies, Group Sava In • • • • • • • Group systematically: Sava the in policy safety and health occupational The actions A systematicapproachandpreventive the SavaGroupisasfollows: The goal of the occupational health and safety policy in and SocialAffairs. es and in accordance with the occupational health and safety permits issued by the Ministry of Labour, Family Safety. The employees of the Safety centre carry out professional safety tasks as authorised by the compani centre competence former the succeeded centre Safety The d.o.o. Storitve in Medical Sava of part a as acts that aim at assuring the compliance with the legislation are performed by the Safety centre whose expert core Proactive, preventive and professional actions and consulting services to the companies’ management teams 1.2.
wres n os ht r aatd o their to adapted are that jobs in workers diseases originating from the working envi throug work to able are employees that and stress on emphasis with risk social ces. risks due to the addiction to psychoactive substan psycho-physical abilities. Employ Prevent Prevent work Assure thewell-beingofallemployees. Assures Prevents Identifies, ronment factors, or diseases associated with work. hout theirworkingperiod. tional healthandsafety.
at work Concern forhealthandsafety analyses and decreases risks in occupa -related accidents.
- - - - -
2010). in (39.5% year previous the of level the at was which examinations, health preliminary,specific and periodic underwent employees Group Sava of 30.7% 2011, In healthy workingenvironment. portant to monitor the state of health and take care of a im- therefore is it effects, harmful and risks special by Every work place as well as the environment is featured of health Monitoring employeestate 2007-2011. ber of work-related accidents by 2.5 times in the period num the decreased already companies Group Sava accidents. Owing to various programmes and activities work-relatedin decrease 25% a for strategy a adopted Commission European the 2007-2012, period the For injuries. work-related of frequency and number the decreasing in resulted injury an or damage material a with cident ac an to lead could that occurrences hazardous ing detect to approach systematic a of introduction The Work-related accidentswithinjuries
- - - - SUSTAINABLE DEVELOPMENT ANNUAL REPORT 2011 101 1.2 23 2011 2011 1.6 32 Decrease by 28.1% 2010 2010 Decrease by 24.5% 43 2.0 2009 2009 57 2.4 2008 2008 57 2.5 2007 2007 0 70 60 50 40 30 20 10 3.0 2.5 2.0 1.5 1.0 0.5 0.0 SAVA GROUP SAVA of work-related Frequency accidents with injuries per 200,000 working hours from 2007 to 2011 SAVA GROUP SAVA No. of work-related accidents with injuries from 2007 to 2011 The frequency of work-related accidents with sick leave (number of work-related data it was lower by 24.5%. 200,000 working hours) amounted to 1.2 in 2011, and considering the 2010 accident with sick leave per With regard to 2010, the number of work-related accidents with sick leave decreased by 28.1% in 2011. The work- The 2011. in 28.1% by decreased leave sick with accidents work-related of number the 2010, to regard With related accidents with sick leave resulted in 354 days of sick leave, which was by 30.4% less than in the previous year. 102 ANNUAL REPORT 2011 SUSTAINABLE DEVELOPMENT incorporation Trainings, raisingawarenessandemployee junior managersofSavaGroup companies. lation. The conference was attended by 111 senior and safety directives, and the novelties in the Slovene legis and health occupational EU the on placed was focus The improvements. continual of tool a as safety and health occupational managing with dealt which ised, occupational healthandsafetyteams. or Advice, Makes and Warns Srečko bulletin director, workers’ organisation, union trade council, the via workers’ or superiors, their to directly proposals give and safety issues and identify hazardous occurrences, health occupational the in participate employees Our • • • with theinformationaboutsafetyissuesthrough: In addition to the basic trainings we provide employees in 2010)thisprocedure. (26.2% employees Group Sava of 27.0% included and classes training of efficiency the measured further We 2010), and45.3%inpracticalclasses(52.3%2010). in (71.5% procedures work safe in classes theoretical attended employees Group Sava of 73.0% 2011, In ards. haz various identify to able are and guidelines, safety and health occupational the with line in react to able are employees well-informed and correctly The vision. super and anticipation of way by prevented are Risks At the end of May, the 9 9 cupational healthandsafety Presentation ofgoodpracticecasesinoc • • th
peetv cmags uh as such campaigns preventive column on work safe for instructions and notices eekly safetyconferenceoftheSavaGroup monthly leafletInformator. special noticeboards. Safety. Fire of Month A - October and Safety of Month A Special The newspaperoftheSavaGroup. A W Involving workers'representativesinsafetyteams. Srečko Warns and Makes Advice Makes and Warns Srečko th safety conference was organ ac – March in the in - - - - - among 18Europeancountries. shortlisted was and Slovenia in companies case tice prac- best two of one as chosen was company Sava’s Promotion. Health Workplace of Network European the by initiative common 9th the under held is which diseases, chronic with workers for work healthy of tion promo called promotion health of network Slovene the by project the joined d.o.o. 3000 Terme 2011, In Promotion Health Workplace project: PHWork The health andwell-beingatworkplace. maintaining and strengthening for activities preventive and promotion in case practice best the as Slovenia in denci was chosen among 126 participating companies Ra resort health Togetherthe case. d.o.o. Domel with practice good winning the presented d.o.o. Radenci Zdravilišče Berlin, titled in May in held conference Work at Well-Being European the At The European project: Encouraging Mental Health to healthandtakingcareoftheirownhealth. attitude employees’ improve to is purpose its disease; a by inflicted when life of quality the and living of way The project is based on the promotion of health, healthy 2012. and 2011 in out carried projects, promotion health the the Slovene Institute of Health Insurance for co-funding Sava Hoteli Bled d.d. applied in the public invitation by Health promotionproject:HealthyandCommitted for WorkerswithChronicDiseases and Well-BeingatWork Encouraging - - SUSTAINABLE DEVELOPMENT ANNUAL REPORT 2011 103 - - 467 2011
614 2010 766 755 2008 2009 organisation, and our associates often participate in such projects in their spare time. In 2011 too, the majority of funds was earmarked for the development of sport, either for the youth or international outstanding with team sports for professional spon We recreation. mass for also but achievements, sored cultural events, donated to humanitarian social projects and made investments in professional devel- opment and education too. 586 2007
Development Development community of social - - 0 600 400 200 800 2 1000 SAVA GROUP SAVA The amount of funds for sponsorships and donations from 2007 to 2011 (€ in thousands) include wider groups of people generations. and We offer the our partners youngest our assistance in The advantage in selection of funds recipients is giv rate. We further promoted the cooperation with our traditional partners, yet owing to the aggravated financial aggravated financial the owing to yet partners, traditional our with cooperation promoted the further We rate. situation the amount of funds donated in 2011 was lower. Our associates actively spent Sava. Savčan and the Cultural Society of the Sports-Recreational Society within the framework their leisure time The essence of the sustainable development is to act strategically towards a better tomorrow. Although the economic circumstances are still difficult, we still wish to promote the development of the wider community, but we had to substantially reduce the funding marked for sponsorships and donations. ear en to long-term partnerships and the projects, which Sponsorships and donations to Sponsorships the social community Sava Group companies are aware of their which responsibility is why to they the sponsor wider community, ope they which in environment, the of development faster and successful a promote to donations make and 104 ANNUAL REPORT 2011 SUSTAINABLE DEVELOPMENT ršrn n ra I coeain ih h Prešeren’s the with cooperation In Vrba. in Prešeren the birth-house of the Slovene greatest poet Dr. France and Kranj in Gorenjska of Museum the sponsored We folk dancegroup. its of performances with heritage folk Slovene the in interest people’s excites but members, its of creativity encourages only not society cultural The years. many We have been sponsoring the Sava Cultural Society for spectacle, skijumpsinPlanica. sports international the sponsored also we 2011, In the 1 in plays who Kranj Sava Club Handball women’s the established Slovene basketball clubs. We are faithful to keep up the pace with the young generation of the already well- can and progressing are team the from girls and boys The athletes. young with work the on focus great a places which Kranj, Stražišče Club Basketball the co-financed we succession, in year fourth the For Prix. Grand Kranj international the in professionals or letes ath recreational for either events cycling of organiser excellent an is Club Cycling Sava the of management The teams. cycling professional elite the of members sults at international level, while some of them are even re top achieve who athletes, young training in history Sava Cycling Club ever since 1968. The club has a rich the sponsoring been have We Kranj. in sport the cycling supporting been has d.d. Sava years many For Sava d.d. st B nationalwomenhandballleague. (%) and donationsin2011 Structure ofsponsorships SAVA GROUP Professional developmentandeducation Humanitarian socialprojects Culture Sport - - pated. partici Sava from associates the including individuals Clean Kranj campaign, in which 40 societies and 3,500 Let’s the support and co-organise to tradition our is It theatrical performancesduringtheDramaWeek. Theatre in Kranj, we enable viewers a free admission to tion of the 11 the of tion As far as sport is concerned, it sponsored the organisa concerts bythechoirMysterium. the of preparation the in and Stražišče of community local the with cooperation in Stražišče of week cultural Furthermore, it assisted in the organisation of the 24 the of organisation the in assisted it Furthermore, organisation oftheirformalacademy. the in Association Engineers Mechanical Slovene the and 2011, BALKANMINE conference international 4th the of organisation the in Mine Coal Velenje of cians Techni and Association Engineers’ the sponsored It Association ofSocietiesforCombatingCancer. Slovene the and Cross Red the Slovenia, of sociation As- Sclerosis Multiple the sponsored further It dren. the Institute for Holiday-Making and Recreation of Chil- by organised holidays free enjoyed families deprived socially- from people young that sure Savatech made o. o. companies, d. Group Sava other to Similar Rubber Manufacturing and theSwimmingClubTriglav Kranj. TriglavClub Hockey the homeless, for championships 10% 5% th Mayor’s Run in Kranj, the world football world the Kranj, in Run Mayor’s 4% 81% th - - -
SUSTAINABLE DEVELOPMENT ANNUAL REPORT 2011 105 - - - - - Our Great Our time in suc th Festival of Prekmurska and allocated the gath- organised by the Sports and the . The company repeatedly - collabo Night of Sparkling Wine whose aim is to gather funds for children from Marathon of Three Hearts Smells of Prekmurje Gibanica and Ham events charity the of organisation the in rated Heart socially- deprived families in Pomurje. The company co-funded the Institute for Holiday-Making and Recre ation of Children Ljubljana to assist in organising holi children. days for their employees’ Lendava d. o. Terme o. continued to fund the Football Club Nafta Lendava, Sports Speedway team Lendava and the Women’s Football Club Pomurje Beltinci. Fur it supported ther, the Croatian Cultural Society Pomur je, the Institute for the Culture of Hungarian Nationality in Lendava. and various smaller cultural societies Zdravilišče Radenci, d. o. o. sponsored the tradition- al Society Radenci. It repeatedly organised the charity event ered funds to the General Hospital Murska Sobota for purchasing an MRI device. This year too, it sponsored the Night of Wine, Traminec the Football Club Mura, the Slovene Association of Disabled and Workers the Maribor. Society of Disabled Persons Under the sponsorships Banovci of d. Terme o. o. the event Xmas Village took place for the 12 Terme Terme 3000 d. o. o. sponsored ethnological It events cession in Banovci. - - - friendship golf tournament for th Tourism Tourism Sava Hoteli Bled d. d. sponsored the traditional Bled while in the 13 Festival, It also sponsored a very promising Slovene stunt racer stunt Slovene promising very a sponsored also It Rok Bagoroš, who represents our company in a very attractive manner home and abroad. In 2011, a lot of sponsorship funds were earmarked for earmarked were funds sponsorship of lot a 2011, In the events, at which Savatech’s new products off-road were promoted. For the third year in succession, the Sava Enduro Cup was organised, which attracted rac ers from Slovenia, Croatia and Austria to participate. The company also sponsored Slovene the motorcycle championships SXC, or most Slovene attractive which in overall standing included over Cross Country, 300 drivers. Savatech’s off-road products were dem onstrated to the best male and female racers on the occasion of the World Motocross Championships in Orehova vas, Slovenia; it should be pointed out that the first time. the female category was included for President’s Cup Sava funds were gathered for the ICT Bled. Plemelj Josip Dr. school primary the in equipment It sponsored the charity hockey tournament organised by the hockey player Anže Kopitar, the Bled Rowing Club and numerous smaller sports clubs in Bled pro moting sport among the youth. 106 ANNUAL REPORT 2011 SUSTAINABLE DEVELOPMENT in 2011. produced in volume increased the despite products that and services in and Group’s companies. 0.3% The share of by energy costs increased in sales revenues Group decreased by 0.15 Sava percentage point the in energy of consumption total The 3.1. Protectingthenatural CO of level the reduced We indicators. environmental of improvements further in manifested area safety in work systematic and preventive a of effects the 2011, In gramme introduced by the European golf association, golf European the by introduced gramme management. Tourism adapts its operations to the pro- environmental the to approach systematically panies com- Group Sava 14001:2004, ISO EN SIST standard Based on the international environmental management • • • • • • Our prioritygoalsareasfollows: out intheenvironmentallegislation. set requirements the to adapted regularly are erations op- Our environment. the towards responsibly act ers we make sure that all employees as well as our suppli the environment. By educating and raising awareness, on impacts the reduce to endeavour every make We swimming poolwaterandimprovedguestsafety. adopted measureswereandintroducedthe so-called Greenmeetings.We maintainedahighqualitylevelof the efficient how evaluated we Forum, Strategic Bled the in footprint carbon the analysing By incidents. fire
rational use of energy, raw materials and natu The trainingofemployees. Substitution The preventionofenvironmentalpollution. Decreasing thespecificquantityofwaste. Separate The zardous ones. rease thequantityofwastefordisposal. ral resources. (GWh) from 2007to2011 of energyproducts Total consumption SAVA GROUP environment collection and recycling of waste to dec to waste of recycling and collection of hazardous substances with less ha
3 120 150 30 60 90 3 0 - - - - 133.4 2007 2 emissions, the quantity of waste and the number of number the and waste of quantity the emissions, protection andfiresafety Environmental and natural resources, and investments, in genera in the projects for minimising the consumption of energy rectorSava’sof energy management operations liaises A team for the efficient use of energy managed by the di safety andassetssecurity. guest safety, fire protection, environmental in Group Sava of teams management the to services consulting The Safety Centre provides a professional support and dards -EcoLabel,areinprogress. stan environmental highest the meet which services, and products for sign eco European the obtaining for activities the while Green, to Committed so-called the are electricity, natural gas, heating oil and household and oil heating gas, natural electricity, are companies Group Sava in resources energy main The Efficient useofenergy as aresult,correctivemeasuresareintroduced. and, with dealt regularly are which indicators, mental environ measurable of means by environment the on operations our of impacts the decreasing monitor We management Indicators ofresponsibleenvironmental 133.6 2008 113.9 2009 116.0 2010 Increase by0.3%
116.4 2011 l. - - - SUSTAINABLE DEVELOPMENT ANNUAL REPORT 2011 107
2 - 43.2% 1.4% 7.1% 26.2% The The ne decreased by 3%. ne decreased by 3%. 22.1% 1.4%. by increased oil heating of consumption propane/buta gas household of consumption
Lower greenhouse gases emissions v • • The efforts for a more rational use of energy change in the and type of energy a products in Sava Group companies resulted in a continual decrease of CO stead of incinerating them, they are regenerated and proce- introduced The process. the into back returned dure results in a considerable reduction in the carbon 85% less solvents are dioxide emissions. Furthermore, purchased, which substantially decreases the environ- mental risk at decanting solvents into tanks. emissions over a few years’ period. We are fulfilling the commitments of Protocol. Union in implementing the Kyoto the European - - - Electricity Steam Natural gas Heating oil Propane/butane SAVA GROUP SAVA The share of individual consumed energy products in 2011 (%) The of steam increased by 8.7%. The consumption The 2.0%. 3.2%. by decreased electricity of consumption consumption of natural gas decreased by
In 2011, 10 measurements of emissions to the air were air the to emissions of measurements 10 2011, In carried out, mainly because of the new TOC limit val- ue; based on the results, certain measures were intro adsorption using solvents of regeneration for system A was introduced in 2010. This new air cleaning system intercepts solvents evaporating in the process, and in In Savatech d.o.o. we make sure that emissions of sub of emissions that sure make we d.o.o. Savatech In stances into the air are monitored every two to three years, which is in compliance with the environmental legislation. The most frequent parameters monitored are TOC (total organic carbon) and dust particles. The Environment the of Agency the to reported are findings of the Republic of Slovenia. duced to reduce these emissions. amounts to €318,000 annually. Lower emissions into the air In 2011, the team for the efficient use of energy finished 11 projects, 13 are still being in progress; total saving • • • Considering Considering the type of energy product, the 2011 con- sumption indicators at the level of the Sava Group are as follows:
protection and fire safety fire and protection Environmental Environmental 108 ANNUAL REPORT 2011 SUSTAINABLE DEVELOPMENT ration and analysed food and beverages field, in the in field, beverages and food analysed and ration sepa waste of efficiency the examined We too. fields other included impacts environmental of analysis The in conferencehallshad1%share. energy of consumption the and 37%, accommodation share, 59% a had transportation figure, this In ticipant. CO indirect and direct the 2011, In metric tons of CO Forum22.5 Strategic generated Bled the of ganisation The analysis of the carbon footprint showed that the or Bled StrategicForum, thefirstmodelGreenmeeting. the of case the with verified was emissions gas house green the reducing at aiming measures the of ciency effi The meetings. and conferences mentally-friendly environ of Tourismproduct 2011, new In a developed Green meetings analyses ofenvironmentalimpacts- Carbon footprintcalculationand the graphonoppositepage. Total CO SAVA GROUP (thousand ofmetrictons) from 2007to2011 of energyproducts dueto theconsumption 2 emission 2 emissions or 57.4 kg CO 2 emissions decreased by 1.9%. The structure of CO of structure The 1.9%. by decreased emissions
2 per a par
10 20 30 40 50 60 0 ------2007 48.7 • • • rum enabled: The carbon footprint analyses in the Bled Strategic Fo tribute toactinginasustainablemanner. con further to beverages and food season locally produced of sale the encourage will we which, of case
sial bss o te e maue fr redu for measures new the for basis suitable on had meeting Green this impact the of hotel operations. day-to-day other as well as events conference in emissions gases greenhouse of amount the cing nment. enviro- the on impacts the reducing on measures the environment. A Evaluation Estimate 2008 49.1 of the efficiency of the already adopted already the of efficiency the of 2009 40.2 decrease by1.9% 2010 41.4 2 emissions is clear from clear is emissions 2011 40.6 - - - SUSTAINABLE DEVELOPMENT ANNUAL REPORT 2011 109 - 2011 474.2 . 56.3% 2010 475.7 decrease by 0.3% detect drinking water leaks in the 0.9% 2009 478.0 24.8% 5.3% 2008 569.8 Ensure the rational use of water Systematically Regularly monitor drinking water consumption. network and eliminate faults as they appear. network and eliminate faults as they 12.7%
• • • This This water is assured by Goodyear Dunlop Sava Tires d.o.o., which uses the pumped water also for the pro duction duction of steam. The latter is used in - technology pro heating. for also partly and cesses 2007 590.8 0 700 600 500 400 300 200 100
2 ) 3 Electricity Steam Natural gas Heating oil Propane/butane gas
emissions by type emissions by type in 2011 of energy products (%) SAVA GROUP SAVA Consumption of drinking water from 2007 to 2011 (000 m SAVA GROUP SAVA The structure of CO Lower drinking water consumption In In August 2009, Savatech d.o.o., Kranj, discontinued its flow-through system for cooling with the River Sava water water River. is now used only indirectly, from processes technology in used water softened as mainly systems. water cooling closed the up filling for and Lower river water consumption In 2011, the consumption of drinking water in the Sava Group was 0.3% lower than in 2010 and that despite an companies. increased number of guests in the Tourism In 2011, we proceeded with a systematic project for water: decreasing the consumption of drinking 110 ANNUAL REPORT 2011 SUSTAINABLE DEVELOPMENT With regardto2010,theconsumption ofgeothermalwaterin2011wasby5.3%lower.With Lower geothermalwaterconsumption 5.7% lowerin2011toamount0.89m by 3.2%, the specific consumption of river water (the quantity of river water per produced quantity of products) was By installing local autonomous cooling units and closed cooling towers, the consumption of river water decreased n opine ih h rqieet o environmen- of requirements the with compliance in and programme monitoring operation the on Based functioning ofinternalcleaning devices(oilcatchers). efficient the and systems cooling closed processes, production in water returning by water waste with tion We are continually decreasing the environmental pollu Responsible handlingofwastewater (000 m from 2007to2011 in Savatechd.o.o River waterconsumption SAVA GROUP (000 m from 2007to2011 Geothermal waterconsumption SAVA GROUP
3 3 ) ) 3 /tons ofproducts. 1,000 1,500 2,000 2,500 3,000 100 200 300 400 500 500 0 0 - 2,323.4 351.8 2007 2007 tem. sys- sewage internal the in inflow the before outflows water waste industrial at and system, sewage public the in inflow the before points measuring two at water waste of monitoring out carry regularly we permits, tal 2,229.3 320.1 2008 2008 1,989.0 120.8 2009 2009 1,898.7 decrease by3.2% decrease by5.3% 2010 2010 20.0 1,798.6 2011 2011 19.3 SUSTAINABLE DEVELOPMENT ANNUAL REPORT 2011 111 - 39.4 2011 Decrease by 6.6% 42.2 35.6 2009 2010 56.7 2008 by the Ministry of the Environment, who before the in- tervention informed the Inspectorate of RS of the Envi- ronment and the Labour Inspectorate of RS. Wood, Wood, metal, paper and plastic are recycled, whereas hazardous substances and their packaging are in cinerated cinerated or reprocessed. The majority of office and production waste is sorted out and what remains after sorting out is disposed. A part of rubber waste is left to energy utilisation in cement works, and part of it is processed. We carried on with the strategic project Reducing and use of waste, which is being continued in 2012 too. Rubber waste was used in the manufacture of product prototypes. In 2011, total amount of rubber waste amounted was it year previous the to compared and tons, €856.8 to lower by 4.2%. 43.4 2007 - - 0 60 50 40 30 20 10 70 SAVA GROUP SAVA Specific quantity of deposited rubber waste in Savatech d.o.o. from 2007 to 2011 (kg/ metric tons of product) In 2011, 37 m of asbestos cement pipes weighing 7.5 hall technical the of duct the from eliminated were tons of Savatech d.o.o. In conformity with the regulations, pipes were replaced by a service provider authorised The specific quantity of rubber waste (in kg of waste / tons of products) decreased by 6.6% in 2011. The specific quantity of rubber waste (in kg of waste / tons of products) decreased Rubber waste in Savatech d.o.o. we have been separately collecting years. several for property and type to according waste Before waste is transported to the authorised waste disposal companies, it is weighed. Concern for a safe and professional waste Concern for a safe and professional disposal With regard to 2010, total quantity of waste water in Sava Group companies increased by 2.0% in 2010, which was due to a bigger volume of products services. and Measurements are carried out by the outsourced certi outsourced the by out carried are Measurements monitoring internal the on Based providers. service fied In measurements. check-up monthly out carry we plan, 2011, three measurements at the outflow of sewage- and system, sewage public the into system technology two measurements each at four oil catchers were car ried out. 112 ANNUAL REPORT 2011 SUSTAINABLE DEVELOPMENT ulp aa ie doo ad eac Technologies Veyance and Goodyear d.o.o. Tires d.o.o., Sava Dunlop SchäferRolls with cooperation In dents forminimisingtheimpacts ontheenvironment. resi neighbouring the from initiatives to open are We Cooperation withthelocalcommunity buildings orrenovationsoftheexistingfacilities. new for either projects, investment all in incorporated is comfort guest higher a for protection anti-noise An surements areplannedfor2012. mea next The plant. production the of wall outer the barrier was erected, which muffles sound echoing from anti-noise an and planted, was trees pine of made rier bar green a night, at noise decrease To introduced. 2011 and, based on the results, further measures were in again out in carried were reduction measurements noise noise 2009, in made were investments After transportation. outdoor and indoor as well as particles dust for tems sys filter and towers, cooling itself, production the are Manufacturing Rubber in noise of sources main The Anti-noise measures incineration. for left partly is it waste valued high-heat as and ing, process further for left partly is waste Rubber waste. technologyapplicabilityof the examine we waste, with space of occupation the decreasing forEndeavouring Waste assecondaryrawmaterials municipal wasteinSavaGroupcompanies. of quantity the in decrease 27.6% a in resulted training employee ongoing and management waste systematic A Municipal waste (kg/metric tonsofproduct) from 2007to2011 municipal waste Quantity ofnon-hazardous POSLOVNA SKUPINA SAVA 1.200 1.500 1.800 900 300 600 0 - - - - - 1,583.9 2007 Europe d.o.o., Savatech d.o.o. organised the 15 the organised d.o.o. Savatech d.o.o., Europe evs n n mjr aeil aae a caused. was damage material major no and selves that the initial fire was extinguished by associates them 10 initial fire incidents of the 0 level broke out, meaning only 2011, In fires. of number the decreased strongly have we safety fire to approach systematic a to Owing to dealwithemergencysituations. teams intervention of qualification the checks-up larly regu- d.o.o. Savatech improvements. introducing for ity for reaction in extraordinary events provides a basis in an extraordinary event. Checking-up employee abil nary events depend on time and manner of all involved sures, risks still exist. The consequences of extraordi mea- safety fire planned the a of implementation and strict safety, fire in measures precautionary taking about training employee area, safety fire the in sures Despite continual improvements in the preventive mea- extraordinary events Preventive measuresandpreparednessfor 3.2. Firesafetyandprotectionaga- proposals forfurtherimprovementsofthesituation. minimising impacts on the environment and also made for investments planned and achievements important most companies, all of indicators environmental mon com the with acquainted became who Street, detova ing was attended by 45 residents from Labore and Me meet The 2012. January of beginning the in complex industrial Sava the of neighbours with meeting ditional inst otherextrao 1,346.7 2008 1,320.6 2009 1,387.2 2010 rdinary events 1,005.0 Decrease by 27.6% 2011 th tra-
------
SUSTAINABLE DEVELOPMENT ANNUAL REPORT 2011 113 ------
ain of in the supply ch materials and services 3.5. Environmental safety in the future the in safety 3.5. Environmental We will further demonstrate our responsibility towards the environment by implementing legal requirements, and methods sophisticated with upgrade will we which standards that will assure continual improvements in environmental management. In Savatech d.o.o., the activities will be oriented to ob 3.4. Concern for the environment 3.4. Concern for the environment In selecting the suppliers of materials and services we give priority to those who show a respectful and sys tematic attitude to environmental protection and local suppliers. to Supplies from the local environment, environment. the on burden a of less place namely, environmental an suppliers to send we years two Every on questionnaire, the basis of which we ascertain their environmental responsibility and also obtain the data about their environment management certificates. Ev system a with familiar made are contractors all year ery of environmental protection applicable for a particular location. 86 Article to according permit environmental an taining of the Environmental Protection Act – Environmental Permits. In we Tourism, will further endeavour to pre serve the variety and diversity of animal species golf on courses. We will endeavour to relieve the burden hotels of surroundings the on emissions exhaust car of in Bled and Bled Lake by building a road by-pass. We will proceed with the adaptation of hotels to meet EKO standards. In planning and monitoring our future operations, we will comply with the principle that the unspoiled nature is the best heritage for the future generations. Regular samplings show that Sava’s swimming pool water is highly compliant with the specified values. In rare cases when limit values are exceeded, corrective measures are introduced. preserving For and further improvements in the quality continual training of and swimming educa pool water, bath and future, the in organised be will courses tional ers will be reminded to have a shower before entering the pool in order to prevent the input of organic sub stances. ------n
ol water d quality of swimming po Guest safety an
The quality of swimming pool water in Tourism is high of level. We monitor it the regularly year in order and to minimise throughout health hazards. A great progress was made in the past years by introducing an integrated supervision over the operation of swim and in surfaces of cleaning regular systems, pool ming around swimming pools, improvements in procedures and maintenance of high hygienic standards. The quality of swimming pool water In 2011, a new methodology was developed and in Concern for guest safety Concern for guest safety is one of the most important commitments of Tourism companies. However, if ac cident happens in a swimming pool or elsewhere in a particular destination, the reported accident is record- ed and, if required, additional measures for improving accidents of number the 2011, In introduced. are safety in the entire division Tourism fell by 8%. Injuries as a result of slipping on wet surfaces around the ming swim- pools and wardrobes are prevented with drying the floor continually, renewing anti-sliding prevent To warnings. with boards notice up setting coatings, and injuries due to incorrect diving, warning boards are set while lifeguards carefully supervise the situation in the pools. troduced, which involves regular preventive check-ups of children playgrounds to assure compliance with the divisio internal standards set out by the Tourism 3.3. A preventive and systematic approach to the environ- mental management and making employees aware of the significance of the environment protection resulted in a decrease risks for environmental accidents. 2011, In there was no environmental accident and natural the impact would in which companies, Group Sava living environment. Zero environmental accidents in 2011 Zero environmental It is a tradition that every October we join the pan-Slo The number of fire incidents decreased by 23%. decreased by 23%. of fire incidents The number vene preventive action campaign called October – A Month of Fire In Safety. October prac and November, tical drills for handling portable fire-extinguishers and organ initial fires were of event the taking measures in ised in certain companies. 114 LETNO POROČILO 2011 FINANCIAL 2011 POROČILO LETNO REPORT
115 116 ANNUAL REPORT 2011 FINANCIAL REPORT 1 Consolidated statementoffinancialposition 1.1. Total assets Investment property Intangible assets Property, plantandequipment ASSETS Long-term equitysecurities,availableforsale Investments inassociates Long-term loans Inventories Assets forsale Trade andotherreceivables Current loans Short-term investments Current taxreceivable Current assets Cash andcashequivalent Deferred taxassets Long-term assets 1
as adoptedbytheEU International FinancialReportingStandards with notesinaccordance Financial statementsoftheSavaGroup as adoptedbytheEU in accordancewithInternationalFinancialReportingStandards Consolidated financialstatementsoftheSavaGroup 1.3.12. 1.3.11. 1.3.10. 1.3.14. 1.3.13. 1.3.15. 1.3.17. 1.3.16. 1.3.18. 1.3.20. 1.3.19. 1.3.21. 1.3.26. Notes
31/12/2011 611,275 119,489 491,786 215,182 199,847 10,040 41,177 29,347 32,348 26,768 20,224 10,649 24,697
459 384 128 25 € inthousands 31/12/2010 760,832 117,598 643,234 228,061 319,158
10,549 67,225 58,834 25,383 24,958 11,615 8,293 5,675 951 115
15 0
FINANCIAL REPORT ANNUAL REPORT 2011 117 - 0 0 76 222 1,873 6,899 1,862 -4,448 -4,977 83,751 19,691 12,801 33,828 101,632 125,608 212,999 169,015 321,479 323,352 232,775 204,705 437,480 760,832 31/12/2010 € in thousands 0 0 42 236 4,977 1,716 6,615 6,266 -4,847 -4,977 84,940 83,751 62,501 12,243 17,898 31,105 81,401 308,809 164,080 165,796 364,078 445,479 611,275 31/12/2011 Notes 1.3.25. 1.3.23. 1.3.24. 1.3.28. 1.3.16. 1.3.25. 1.3.27. 1.3.22.
Share premium value reserve Fair Retained earnings equity attributable to equity holders of the parent Total EQUITY AND LIABILITIES Issued capital Reserves shares Treasury reserve Translation Minority interest Total equity Total Long-term interest-bearing borrowings Long-term interest-bearing Long-term operating liabilities Long-term provisions Deferred government grants Deferred tax liabilities Long-term liabilities for sale Current operating liabilities Accrued expenses Liabilities for sale borrowings Current interest-bearing Current operating liabilities Total liabilities Total Total equity and liabilities Total The notes to the financial statements form a therefore, constituent should part they, be of read the in latter, con junction with the financial statements,
with notes in accordance with with accordance notes in with Standards Reporting Financial International by the EU as adopted Financial statements of the Sava Group Group Sava of the statements Financial 118 ANNUAL REPORT 2011 FINANCIAL REPORT njunction withthefinancialstatements. co- in read be latter,should they,the therefore, of part constituent a form statements financial the to notes The Consolidated incomestatement Diluted earningspershare(€) Basic earningspershare(€) Net profit/lossfortheperiod Minority interest Equity holdersoftheparent Net profitfortheyearattributableto: Net profit/lossfortheyear Tax Share inincomeofassociates Pre-tax profit Net income/expensefromasscoiates Impairments offinancialinvestmentsinassociates Share inlossofassociates Net financingincome/expense Financial expense Financial income Operating income/loss Labour cost Cost ofgoods,materialsandservices Operating expenses Other operatingexpense Other write-offs Depreciation andamortisation Change ininventoriesofproductsandworkprogress Revenues fromgoodssoldandservicesrendered Operating revenue Other operatingrevenue 1.3.36. 1.3.35. 1.3.37. 1.3.32. 1.3.34. 1.3.33. 1.3.29. 1.3.30. Notes -157,160 -157,160 -169,067 -109,566 -203,680 -157,013 -120,507 -117,861 198,658 193,783 -54,479 -59,623 -57,044 -13,964 -10,792 11,907 11,049 -5,022 -78.69 -78.69 -4,019 5,144 4,942 2011 -147 -108 -67 € inthousands -105,122 -109,711 -199,312 -114,479 -125,265 202,320 176,730 -99,899 -99,899 -99,848 -52,193 -15,358 11,819 21,718 -50.04 -50.04 -9,249 -2,548 -3,948 1,581 3,008 5,223 4,768 3,872 2010 -989 -51 FINANCIAL REPORT ANNUAL REPORT 2011 119 0 64 -51 319 -937 -362 2010 4,063 -2,358 -41,582 -99,899 -40,793 -140,641 -140,692 -140,692 € in thousands 0 14 599 959 -868 -385 -147 2011 6,321 -5,055 -2,355 -157,160 -157,398 -157,545 -157,545 Notes 1.3.13. 1.3.25. 1.3.14. 1.3.25.
- Change in fair value of investments in associates - Change in fair value assets transferred financial of available-for-sale - Change in fair value to profit or loss - Deferred tax on change in fair value of available-for-sale financial assets in fair value of available-for-sale - Deferred tax on change Profit for the period income Other comprehensive for foreign operations currency translation differences - Foreign to profit or loss values of cash flow hedges transferred - Net changes in fair assets financial of available-for-sale - Change in fair value assets financial available-for-sale - Deferred tax on change in fair value of transferred to profit or loss net of deferred tax Other comprehensive income for the periods, comprehensive income for the period Total - Effective portion of changes in fair values of cash flow hedges - Effective portion of Total comprehensive income for the period attributable to: Total comprehensive income for the period Owners of the Company Minority interest Total comprehensive income for the period Total The notes to the financial statements form a constituent part of therefore, the they, should latter, be read in co- njunction with the financial statements. Consolidated statement of comprehensive income comprehensive statement of Consolidated 120 ANNUAL REPORT 2011 FINANCIAL REPORT Consolidated cashflowstatement Profit/loss beforetaxation CASH FLOWS FROMOPERATING ACTIVITIES Depreciation ofproperty, plantandequipment Adjustments for: Write-off ofinvestmentsinprogress Impairment ofproperty, plantandequipment Depreciation ofinvestmentproperty Depreciation ofintangibleassets Net cashflowfromoperations Paid income tax Acquired cashinoperations Change ingovernmentgrants Reversal ofincreasesinvalueproperty, plantandequipment Reversal ofimpairmentsproperty, plantandequipment Loss insaleofassociates Loss insaleofsecurities Impairment offinancialassets Write-offs andimpairmentsofinvestmentproperty Write-offs ofintangibleassets Impairment ofgrantedloans Share inincomeofassociates Profit insaleoflong-termsecurities Foreign currencytranslationdifference Profit fromsaleofinvestmentproperty Loss atdisposalofproperty, plantandequipment Proceeds fromsaleofplant,propertyandequipment Impairment ofinvestmentsinassociates Interest expenses Write-off offinancialreceivables Impairment ofgrantedloanstoassociates Foreign exchangeratedifference Share inlossofassociates Other dividendsreceivedandsharesinprofit Liabilities/receivables forincometax Interest revenue Income fromoperationspriortochangeinoperatingequity andprovisions Change inprovisions Change inlong-termoperatingliabilities Change incurrentoperatingliabilities Change ininventories Change incurrentreceivables Change inlong-termreceivables 1.3.23. 1.3.10. 1.3.10. 1.3.12. 1.3.11. 1.3.37. 1.3.24. 1.3.10. 1.3.35. 1.3.14. 1.3.12. 1.3.11. 1.3.35. 1.3.36. 1.3.35. 1.3.30. 1.3.33. 1.3.30. 1.3.13. 1.3.35. 1.3.36. 1.3.36. 1.3.35. 1.3.37. 1.3.35. Notes -157,160 113,820 -11,049 -11,907 -13,113 11,476 13,266 26,429 22,446 16,547 -1,595 -2,597 -2,196 -2,759 9,881 1,609 6,687 3,592 7,256 2011 -558 -459 -196 530 116 189 580 119 298 108 416 -19 -93 92 14 -5 0 0 3 0 0 € inthousands -99,899 -11,819 -10,896 37,936 39,264 24,676 14,420 53,108 16,255 18,276 21,360 14,392 -1,328 -3,137 1,402 1,012 9,249 5,223 3,847 5,329 1,144 2010 -630 -138 -868 -126 -505 818 120 142 989 -46 69 17 64 13 79 0 0 0 0 FINANCIAL REPORT ANNUAL REPORT 2011 121 0 0 0 0 0 46 - -35 -65 361 2010 4,431 8,293 3,137 4,707 2,397 3,862 -6,416 -4,753 -4,338 -6,396 54,524 11,819 98,841 38,713 -21,360 -81,296 -15,340 -56,456 -72,787 215,302 -228,753 € in thousands 0 6 -1 -11 -10 -17 -72 196 459 329 164 -597 2011 8,293 2,196 7,982 1,100 2,953 -1,992 -7,293 10,649 14,769 11,049 74,431 12,966 -22,446 -14,065 -75,571 -19,894 131,238 -129,369 Notes 1.3.35. 1.3.35. 1.3.13. 1.3.14. 1.3.13. 1.3.12. 1.3.11. 1.3.11. 1.3.10. , they, therefore, should be read in co , they, Net cash flow from financing activities Net increase or decrease in cash and cash equivalents Cash and cash equivalents at year begin Paid interests Paid Cash and cash equivalents from companies for sale Cash and cash equivalents at the end of the period Expenses for granted long-term loans Proceeds from granted current loans Expenses for granted current loans Expenses for dividends of Group's shareholders Net cash flow from investment activities IN FINANCING ACTIVITIES CASH FLOWS Acquisition of own shares Proceeds from granted long-term loans Proceeds from sale of long-term securities Proceeds from sale of long-term securities Other dividends received and shares in profit Received interests Received dividends from associates Other changes in capital Expenses for granted loan Expenses for purchase of long-term securities Proceeds from repaid loans Proceeds from sale of investment property Proceeds from sale Proceeds from sale of subsidiaries Proceeds from sale Proceeds from sale of associates Expenses from sale of associates Purchase of investment property Proceeds from sale of intangible assets Proceeds from sale Purchase of intangible assets Proceeds from sale of property, plant and equipment of property, Proceeds from sale CASH FLOW FROM INVESTMENT ACTIVITIES FROM CASH FLOW plant and equipment Purchase of property, The notes to the financial statements form a constituent part of the latter njunction with the financial statements. 122 ANNUAL REPORT 2011 FINANCIAL REPORT profit/loss brought forward profit/loss broughtforward the previousyearinnet Transfer ofnetprofitfrom hedges -interestrateswaps in fairvaluesofcashflow ofchanges Effective portion Dividend payout recorded directlyinequity Transactions withowners, Total comprehensiveincome operations differences forforeign Foreign translation currency Other comprehensiveincome to profitorloss financial assetstransferred fair valueofavailable-for-sale taxonchangein Deferred Balance at31/12/2010 Total changesincapital Other changesincapital Loss oftheyear Total comprehensiveincome own shares for Formation ofreserves Coverage ofloss Changes incapital Balance at31/12/2009 or loss toprofit assets transferred available-for-sale financial Change infairvalueof ers shownincapital Total transactionswithown- investments inassociates Change infairvalueof due toexchangeratechange Decrease inminorityinterest financial assets fair valueofavailable-for-sale taxonchangein Deferred assets available-for-sale financial Change infairvalueof Acquisition ofownshares Consolidated statementofchangesinequity 83,751 83,751 Issued capital 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 premium 125,608 125,608 Share 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -42,668 -53,951 14,714 68,665 -6,530 -4,753 serves Re- 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 for Own shares serves serves 4,977 4,753 4,753 224 Re- 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 financial Reserve Reserve -37,562 -37,562 -41,582 value of 34,623 -2,939 for fair assets 4,063 -362 319 0 0 0 0 0 0 0 0 0 0 0 0 0 vestments in financial in- the valueof associates change in Reserves Reserves from the -2,358 -2,358 -2,358 1,809 -549 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Reserve Reserve value of interest for fair swaps -937 -937 -960 -937 rate -23 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -4,977 -4,753 -4,753 shares -224 Own 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Transla- reserve 222 158 tion 64 64 64 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 financial -99,848 -26,945 -99,848 72,903 72,903 -9,887 -9,887 for the 9,887 profit/ year loss Net 0 0 0 0 0 0 0 0 0 0 0 0 0 128,577 148,808 -30,235 forward brought -23,705 -6,412 6,530 3,475 9,887 profit/ loss Net 0 0 0 0 0 0 0 0 0 0 0 0 0 -140,641 attributed company € inthousands 321,479 473,285 -40,793 -99,848 -11,165 -41,582 owners of con- -6,412 Capital -2,358 -4,753 trolling 4,063 to the -362 -937 319 64 0 0 0 0 0 0 interest trolling 1,873 2,111 Non- -152 -187 con- -51 -51 -35 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -140,692 475,396 323,352 -40,793 -99,899 -11,352 -41,582 -6,564 -2,358 -4,753 4,063 -362 -937 Total 319 -35 64 0 0 0 0 0 FINANCIAL REPORT ANNUAL REPORT 2011 123 0 0 0 0 0 0 17 14 -27 -10 959 599 Total Total -868 -385 6,321 -5,055 -2,355 165,796 323,352 -157,545 -157,160 0 0 0 0 0 0 0 0 0 0 0 0 0 0 17 -27 -10 -147 -147 con- Non- 1,716 1,873 trolling interest € in thousands 0 0 0 0 0 0 0 0 0 0 14 959 599 -868 -385 6,321 to the -5,055 -2,355 trolling Capital of con- owners 164,080 321,479 -157,398 -157,013 company attributed 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Net loss profit/ -6,530 -6,530 95,102 -26,945 -26,945 brought forward 128,577 0 0 0 0 0 0 0 0 0 0 0 0 0 Net loss year profit/ for the 26,945 26,945 -10,162 -26,945 146,852 146,852 financial -157,013 -157,013 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 14 14 14 236 222 tion reserve - Transla 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Own -4,977 -4,977 shares 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -1 959 959 959 rate -960 swaps for fair interest value of Reserve 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -549 -5,055 -5,055 -5,055 -5,604 from the Reserves change in associates the value of financial in- vestments in 0 0 0 0 0 0 0 0 0 0 0 0 0 599 758 -868 6,321 3,697 3,697 -2,355 -2,939 assets for fair value of Reserve financial 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - Re 4,977 4,977 serves shares for Own 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - Re serves 14,714 -14,714 -14,714 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Share 125,608 premium -125,608 -125,608 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 capital Issued 83,751 83,751
Change in fair value of financial available-for-sale assets Decrease in minority interest due to exchange rate change Deferred tax of change in fair value of available- for-sale financial assets for-sale Decrease in minority interest due to a status change in Tourism Change in fair value of investments in associates Balance at 31/12/2010 Change in fair value of financial available-for-sale assets transferred to profit or loss Total transactions with Total owners, recorded directly in equity Formation of reservesFormation for own shares Changes in capital Covering a loss Deferred tax on change in fair value of available-for-sale financial assets transferred to profit or loss Total comprehensive income Total Loss in the year Transactions with owners, Transactions recorded directly in equity of net profit from Transfer the previous year in net profit/loss brought forward Other changes in capital Other comprehensive income currency translation Foreign differences for foreign operations Total comprehensive income Total Acquisition of own shares Balance at 31/12/2011 Total changes in capital Total Effective portion of changes in fair values of cash flow hedges – interest rate swaps 124 ANNUAL REPORT 2011 FINANCIAL REPORT Group, withacomparisonofownershipstakesasat31/12/2011and31/12/2010: List of companies that besides the parent company Sava d.d. are included in the Sava ments oftheSavaGroup.Inallcompaniescapitalandcontrolrightsareinaccord. subsidiaries. The financial statements of all these companies are included in the consolidated financial state 22 and d.d. Sava company parent the companies: 23 of consisted Group Sava the 2011 December 31 On 1.2. SAVA IPd.o.o.,Ljubljana REAL ESTATE DIVISION -SAVA IMG,d.o.o.,Poreč(ownedbySavaIP, d.o.o.) -SAVA IPNd.o.o.,Ljubljana(ownedbySAVA IP, d.o.o.) -IPNOVAAd.o.o.,Ljubljana(ownedbySAVA IP, d.o.o.) -IPNOVAd.o.o.,Ljubljana(ownedbySAVA IP, d.o.o.) TERME PTUJd.o.o.,Ptuj SAVA NOVA d.o.o.,Zagreb TERME LENDAVA d.o.o.,Lendava SAVATECH d.o.o.,Kranj SAVA MEDICALINSTORITVEd.o.o.,Kranj OTHER OPERATIONS ZDRAVILIŠČE RADENCId.o.o.,Radenci SAVA TMCd.o.o.,Kranj SAVA TURIZEMd.d.,Bled TOURISM DIVISION - SAVARUS d.o.o.,Jaroslavl,Russia(ownedbySAVAPRO d.o.o.) SAVAPRO d.o.o.,Kranj SAVA-SCHÄFER d.o.o.,Kranj - SAVA-ROL d.o.o.,Zagreb(ownedbySavatech,d.o.o.) - SAVATECH CORP., Port Orange, Florida (owned by Savatech, d.o.o.) (ownedbySavatech,d.o.o.) - SAVATECH TRADELtd.,London,GreatBritain (ownedbySavatech,d.o.o.) - - SAVA TRADE sp.z.o.o., Warsaw, Poland (owned by Savatech, d.o.o.) - SAVA TRADE GmbH, Munich, Germany (owned by Savatech, d.o.o.) GIP SAVA KRANJd.o.o.,Ruma,Serbia TERME 3000d.o.o.,MoravskeToplice SAVA HOTELIBLEDd.d.,Bled ENERGETIKA SAVA d.o.o.,Kranj ENSA BHd.o.o.,Srbac,Bosnia andHerzegovina ENERGETIKA ČRNOMELJd.o.o.,Kranj SAVA ENSAdooel., Skopje, Macedonia SAVA ITd.o.o.Kranj SAVA CzechRepublic TRADEspol.s.o.o.,Prague,
andassociatedcompaniesin2011 data abouttheoperationsofsubsidiaries Composition oftheSavaGroupand
% ownership 31/12/2011 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 99.05% 60.00% 50.68% 76.00% 95.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
% ownership 31/12/ 2010 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 60.00% 50.00% 96.82% 50.68% 50.00% 76.00% 95.00% 0.00% 0.00% of ownership2011 € inthousands Change in% -100.00% -100.00% -100.00% -100.00% -100.00% -100.00% -50.00% -50.00% -96.82% 99.05% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% - FINANCIAL REPORT ANNUAL REPORT 2011 125 ------Sava d.d., Kranj, in the amount of €0.2 Sava Energetika Sava million – with money paid in. lion- by converting the granted loan into company’s into loan granted the converting by lion- capital. on – with money paid in. mil €9.0 of amount the in Zagreb d.o.o., Nova milli €0.2 of amount the in Kranj, d.o.o., TMC
Associated companies in the Sava Group In 2011, additional purchases were made in Maksima d.d. Sava of share the which after Ljubljana, d.d., Invest increased by 21.77%. In 2011, a 27% share in Job d.o.o., Maribor was sold. There were no other changes in connection with own Increase in capital of subsidiaries Increase The increases in capital of Savatech d.o.o., Kranj, in the amount of €31.2 million, Sava IP d.o.o. , Ljublja na, in the amount of €7.1 million, and Ensa BH d.o.o., Srbac, in the amount of €1.9 million, which had been approved already in 2010, were entered in the register of companies. In the period January-December 2011, the controlling company Sava d.d. increased capital in the following companies: • • • Other explanations In the financial statements of Sava d.d. and the Sava Group, a part of the financial investment in Sava d.o.o. IP in the amount of €19.3 million was transferred from financial investments in the subsidiaries under assets available for short-term sale. It is thus expected that a part of the investment is sold to a partner out of the Sava Group in 2012. In the financial statements of Sava d.d. and the Sava Group, a part of the financial investment in Sava Medi cal in Storitve d.o.o. in the amount of €2.9 million was transferred from financial investments in the subsidiar assets available ies for under sale. short-term It is thus expected that a part of the investment is sold to Foreign the the with Manufacturing Rubber the of mainstay Network, Savatech d.o.o., in 2012. Trade ership stakes in the associated companies. - - - Changes in the composition of the Sava of the Sava in the composition Changes Group Sava IP d.o.o. sold its 50% ownership stake in a jointly Croatia. in Poreč d.o.o., IMG SAVA company controlled Sava IP d.o.o. sold its 100% stake in Sava IPN d.o.o. d.o.o. IT Sava to renamed d.o.o. IPN Sava d.d. Sava to and was incorporated in Other Operations. Sava d.d. transferred the ownership of Sava Rol d.d. , Zagreb to the mainstay of Rubber Manufacturing, Sa On 22 February 2011, Sava d.d. concluded an agree- ment with its long-term partners SchäferRolls GmbH & Co. KG about selling a 50% business stake of Sava d.d. in the mixed ownership company for the manu- facture of roll covers Sava Schäfer d.o.o., Kranj. The ownership of the rubber manufacturing company Sa Radenci Zdravilšče d.o.o., 3000 Terme companies The d.o.o., Terme Ptuj d.o.o. and Terme Lendava d.o.o., company merged the d.d.; Bled Hoteli Sava to merged d.d. Sava was Turizem entered in the register of com d.o.o. IP Sava in stake ownership 100% a split d.d. Sava in two stakes: a 51% and a 49% stake. The division of one since required, was parts two in stake business the part was pledged for the obtained loan. The division was formally made in sale and purchase transactions, which did not change the total value of the financial investment. the Presently, negotiations about selling a part of the financial investment in Sava IP d.o.o. to a partner out of the Sava Group are in progress. vatech d.o.o., Kranj. va-Schäfer d.o.o. thus passed over to become wholly owned by the German partner SchäferRolls GmbH & d.o.o. Co. KG, and renamed SchäferRolls panies on 30 December 2011. 126 ANNUAL REPORT 2011 FINANCIAL REPORT ** The controlling stake is calculated as a ratio between the number of shares owned by Sava d.d. and the total number of is of number total the and d.d. Sava by owned shares of number the between ratio a as calculated is stake controlling The ** 117292 Moscow, Russia. 127, app. 16/2, Moscow Uljanova Dmitrija at office head a in with office representation Savatech has company Kranj, the d.o.o., Group Sava the of part As Representation officesintheSavaGroup fiduciary the of ownership fiduciary a under (7.21%), Kranj d.d., Banka Gorenjska of shares 23,924 transferred d.d. * List ofassociatedcompanieswithacomparisonownershipstakesat31/12/2011and31/12/2010: -Panensa d.o.o.,Srbac,BosniaandHerzegovina -Jobd.o.o.,Maribor - Maksima Invest d.d., Ljubljana -NFDHoldingd.d.,Ljubljana -AbankaVipad.d.,Ljubljana -GorenjskaBankad.d.,Kranj* SAVA, d.d.,družbazaupravljanjeinfinanciranje,Kranj-astheparentcompany -Turizem Lendavad.o.o.
ENSA BHd.o.o.,Srbac,BosniaandHerzegovina-astheparentcompany - GorenjskaBankad.d.,Kranj SAVA TURIZEMd.d.-astheparentcompany sued sharesoftheassociatedcompanylessownshares. liabilities arisingfromthebondsuntiltheirmaturity, whichison09/12/2014. for collateral as d.d. Sava by issued bonds of holders the of favour in them saves fiduciary The Ljubljana. d.d., Vipa Abanka Sava % ownership 31/12/2011 40.00% 21.77% 24.65% 23.83% 45.90% 29.92% 0.00% 0.16% % ownership 31/12/ 2010 40.00% 27.00% 21.34% 24.65% 23.83% 45.90% 29.92% 0.16% of ownership Change in% -27.00% 0.00% 0.43% 0.00% 0.00% 0.00% 0.00% 0.00% 2011 31/ 12/2011 Controlling stake** 40.00% 21.77% 24.65% 23.86% 49.76% 29.92% 0.00% 0.17% - FINANCIAL REPORT ANNUAL REPORT 2011 127 4 0 0 8 0 0 2 -8 -1 94 51 65 96 52 35 362 106 147 564 -342 -592 -245 -668 -392 -943 2011 6,357 6,727 -1,698 -1,288 -6,113 -4,045 -3,646 -8,014 -10,151 Profit/loss 0 9 9 0 3 € in thousands 57 -16 100 411 265 620 760 151 244 -150 -197 1,194 3,312 1,458 8,267 4,889 2,966 3,220 4,136 -2,070 27,751 70,988 35,299 15,805 25,855 92,275 75,601 25,967 197,979 31/12/2011 Equity value
0 0 0 0 0 13 31 115 615 301 672 389 473 2011 5,324 3,188 3,673 1,908 2,403 1,304 4,600 8,183 5,854 2,847 Sales 6,539 5,044 14,893 19,712 19,889 12,371 67,159 25,913 109,832 218,590 139,849 revenues In profit/loss until the month of investment disposal are shown. d.d. was entered in the register of companies on 30 Hoteli December Bled 2011. d.d.; the merged company Sava Turizem assure To comparability, sales revenues for 2011, the value of capital at 31/12/2011 and operating profit/loss are shown separately by individual company.
SAVA TRADE spol.s.o.o., U Elektry 650/50, Budova K, TRADE spol.s.o.o., U Elektry 650/50, Czech 190 00 Prague, SAVA Republic 475 Godstone Road, Whyteleafe, Surrey TRADE Ltd., Bourne House, SAVATECH CR 3 OBL, Great Britain TOURISM DIVISION SAVAPRO d.o.o., Škofjeloška cesta 6, 4000 Kranj 4000 6, cesta Škofjeloška d.o.o., SAVAPRO Spartakovskaja 1d, 150036 Jaroslavl, Russia d.o.o., SAVARUS - FOREIGN TRADE NETWORK SAVA TRADE GmbH, Kobellstrasse 4, 80336 Munich, Germany 4, 80336 TRADE GmbH, Kobellstrasse SAVA SAVA TRADE sp.z.o.o., Ul Przyparkova 19, 05-850 Ozarow Mazowiecki, Poland Mazowiecki, Ozarow 05-850 19, Przyparkova Ul sp.z.o.o., TRADE SAVA SAVATECH CORP., 413 Oak Place, Blgd 5-J, Port Orange, FL 32127, USA Port 413 Oak Place, Blgd 5-J, CORP., SAVATECH SAVA TMC d.o.o., Škofjeloška cesta 6, 4000 Kranj TMC d.o.o., Škofjeloška cesta SAVA **SAVA HOTELI BLED d.d., Cankarjeva 6, 4260 Bled HOTELI BLED d.d., Cankarjeva **SAVA ENSA BH d.o.o., Prijeblezi BB, 78429 Srbac, Bosnia and Herzegovina SUBSIDIARIES SAVA ENSA dooel., Ul Veljko Vlahović br. 16/4, 1000 Skopje, Macedonia Vlahović br. ENSA dooel., Ul Veljko SAVA RUBBER MANUFACTURING DIVISION WITH THE FOREIGN TRADE NETWORK TRADE FOREIGN THE WITH DIVISION MANUFACTURING RUBBER SAVATECH d.o.o., Škofjeloška cesta 6, 4000 Kranj d.o.o., SAVATECH d.o.o., Škofjeloška cesta 6, 4000 Kranj *SAVA-SCHÄFER SAVA-ROL d.o.o., Fallerovo šetalište 22, 10000 Zagreb, Croatia šetalište 22, 10000 Fallerovo d.o.o., SAVA-ROL **TERME 3000 d.o.o., Kranjčeva cesta 12, 9226 Moravske Toplice **TERME 3000 d.o.o., Kranjčeva cesta 12, RADENCI d.o.o., Zdraviliško naselje 12, 9252 Radenci **ZDRAVILIŠČE **TERME LENDAVA d.o.o., Tomšičeva 2a, 9220 Lendava d.o.o., Tomšičeva **TERME LENDAVA v toplice 9, 2251 Ptuj **TERME PTUJ d.o.o., Pot DIVISION REAL ESTATE SAVA IP, d.o.o., Davčna ulica 1, 1000 Ljubljana IP, SAVA IP NOVA, d.o.o., Davčna ulica 1, 1000 Ljubljana IP NOVA, IP NOVA A, d.o.o., Davčna ulica 1, 1000 Ljubljana IP NOVA SAVA IPN, d.o.o., Davčna ulica 1, 1000 Ljubljana SAVA *SAVA IMG d.o.o., Poreč (owned by Sava IP, d.o.o.) (owned by Sava IP, IMG d.o.o., Poreč *SAVA OTHER OPERATIONS MEDICAL IN STORITVE d.o.o., Škofjeloška cesta 6, 4000 Kranj SAVA KRANJ d.o.o., Industrijski put bb, 22400 Ruma, Serbia GIP SAVA SAVA NOVA d.o.o., Fra Filipa Grabovca 14, 10000 Zagreb, Croatia d.o.o., Fra NOVA SAVA ENERGETIKA ČRNOMELJ d.o.o., Škofjeloška cesta 6, 4000 Kranj ENERGETIKA ENERGETIKA SAVA d.o.o., Škofjeloška cesta 6, 4000 Kranj SAVA ENERGETIKA Company / head office * the case of companies, in which Sava d.d. had a 50% controlling stake, total revenues, total capital and total operating Sales revenues of subsidiaries in 2011, capital of subsidiaries at 31/12/2011 and operating profit/loss and operating at 31/12/2011 of subsidiaries in 2011, capital of subsidiaries Sales revenues in 2011: of subsidiaries ** The companies Terme 3000 d.o.o., Zdravilšče Radenci d.o.o., Terme Ptuj d.o.o. and Terme Lendava d.o.o., merged to Sava to merged d.o.o., Lendava Terme and d.o.o. Ptuj Terme d.o.o., Radenci Zdravilšče d.o.o., 3000 Terme companies The ** 128 ANNUAL REPORT 2011 FINANCIAL REPORT the case of companies, in which Sava d.d. had a 50% controlling stake, total revenues, total capital and total profit/loss total and capital total revenues, total stake, controlling 50% a had d.d. Sava which in companies, of case the * of subsidiariesin2010: Sales revenuesofsubsidiariesin2010,capitalat31/12/2010andoperatingprofit/loss Company/ headoffice ENERGETIKA ČRNOMELJd.o.o.,Škofjeloškacesta6,4000Kranj ENERGETIKA SAVA d.o.o.,Škofjeloškacesta6,4000Kranj GIP SAVA KRANJd.o.o.,Industrijskiputbb,22400 Ruma,Serbia SAVA MEDICALINSTORITVEd.o.o.,Škofjeloškacesta 6,4000Kranj OTHER OPERATIONS SAVA NOVA d.o.o.,Fra FilipaGrabovca14,10000Zagreb,Croatia *SAVA IMGd.o.o.,Poreč (owned bySavaIP, d.o.o.) SAVA IPNd.o.o.,Davčnaulica1,1000Ljubljana IP NOVA d.o.o.,Davčnaulica1,1000Ljubljana SAVA IPd.o.o.,Davčnaulica1,1000Ljubljana IP NOVA Ad.o.o.,Davčnaulica1,1000Ljubljana REAL ESTATE DIVISION TERME PTUJd.o.o.,Pot vtoplice9,2251 Ptuj TERME LENDAVA d.o.o.,Tomšičeva 2a,9220Lendava ZDRAVILIŠČE RADENCId.o.o., Zdraviliškonaselje12,9252Radenci TERME 3000d.o.o.,Kranjčevacesta12,9226MoravskeToplice SAVA HOTELIBLEDd.d.,Cankarjeva6,4260Bled SAVA TMCd.o.o.,Škofjeloškacesta6,4000Kranj SUBSIDIARIES SAVA ENSAdooel.,UlVeljko Vlahovićbr. 16/4,1000 Skopje, Macedonia TOURISM DIVISION SAVATECH CORP., 413OakPlace,Blgd5-J, Port Orange,FL32127,USA GreatBritain Surrey CR3OBL, SAVATECH TRADELtd.,BourneHouse,475GodstoneRoad,Whyteleafe, Czech Republic SAVA 19000Prague, TRADEspol.s.o.o.,UElektry650/50,BudovaK, SAVA TRADE sp.z.o.o., Ul Przyparkova 19, 05-850 Ozarow Mazowiecki, Poland SAVA TRADEGmbH,Kobellstrasse 4,80336Munich,Germany -FOREIGNTRADENETWORK SAVARUS d.o.o.,Spartakovskaja1d,150036Jaroslavl,Russia SAVAPRO d.o.o., Škofjeloška cesta 6, 4000 Kranj *SAVA-SCHÄFER d.o.o.,Škofjeloškacesta6,4000Kranj SAVA-ROL d.o.o.,Fallerovo šetalište22,10000Zagreb,Croatia SAVATECH d.o.o.,Škofjeloškacesta6,4000Kranj RUBBER MANUFACTURING DIVISION ENSA BHd.o.o.,PrijebleziBB,78429Srbac,BosniaandHerzegovina
from operationsareshown. In revenues 200,644 124,054 63,822 22,124 11,581 18,120 18,614 12,200 94,162 5,392 7,376 Sales 2,887 1,304 6,055 7,915 4,487 3,105 1,954 4,449 3,002 3,668 3,737 1,518 2010 392 543 519 363 24 13 28 4 0 0 0
Equity value 31/12/2010 158,443 20,087 96,000 39,383 24,883 16,473 35,152 29,449 33,480 -5,051 -1,773 2,974 2,637 2,956 5,363 9,555 1,096 1,112 3,260 1,622 -567 236 359 157 616 -17 -16 64 € inthousands 1 3 8 8 8 6 Profit/loss -2,336 -2,734 -2,227 -3,382 -3,873 -1,324 -2,157 3,915 1,119 3,573 2010 -180 -840 -626 -198 284 125 419 105 164 -24 20 21 18 13 85 58 23 91 -1 2 0 0 1 3 FINANCIAL REPORT ANNUAL REPORT 2011 129 - - 25 -44 295 -122 -325 2011 2010 1,680 6,566 -7,834 21,092 -39,693 -31,124 -18,864 -119,149 Profit/loss Profit/loss € in thousands € in thousands
-7
-19 -32 137 1,142 17,919 21,144 54,221 -17,775 337,026 366,846 364,003 228,689 31/12/2011 31/12/2010 Equity value Equity value trolled companies until the month of their sale in 2011, and interests in the associated companies, and have been drawn for the year ended on 31 December 2011. b) Basis of measurement on prepared are statements financial consolidated The the historical cost basis except for the financial instru ments classified as available for sale and derivative financial instruments that are stated at their fair value. The methods used for measuring the fair value are de scribed under item 1.3.4. - - - - Basis of preparation The reporting company Notes to the financial statements of the Sava Group Notes to the financial statements Financial Reporting in accordance with International the EU Standards as adopted by
Turizem Lendava d.o.o., Glavna ulica 38, 9220 Lendava Lendava d.o.o., Turizem Panensa d.o.o., Prijeblezi bb, 78429 Srbac, Bosnia and Herzegovina Prijeblezi bb, 78429 Srbac, Bosnia and d.o.o., Panensa Gorenjska Banka d.d., Bleiweisova 1, 4000 Kranj Gorenjska Banka d.d., 4, Ljubljana Trdinova Maksima Invest d.d., Kranj Gorenjska Banka, d.d., Bleiweisova 1, 4000 Ljubljana Abanka Vipa, d.d., Slovenska cesta 58, 1517 4, Ljubljana Maksima Invest, d.d., Trdinova Abanka Vipa d.d., Slovenska cesta 58, 1517 Ljubljana Abanka Vipa d.d., Slovenska 4, Ljubljana NFD Holding d.d., Trdinova 4, Ljubljana NFD Holding, d.d., Trdinova Job, d.o.o., Cofova ulica 8, 2000 Maribor Srbac, Bosnia and Herzegovina d.o.o., Prijeblezi bb, 78429 Panensa, Turizem Lendava, d.o.o., Glavna ulica 38, 9220 Lendava Lendava, d.o.o., Glavna ulica 38, Turizem The 2011 data has been prepared on the basis of the unaudited financial statements of the associated companies. financial statements of the associated prepared on the basis of the unaudited The 2011 data has been The 2011 data has been prepared on the basis of the unaudited financial statements of the associated companies. The 2011 data has been prepared on the The consolidated financial statements have been pre- pared in accordance with International Financial Re- porting Standards (IFRSs) as adopted by the EU, and in compliance with the IFRIC as adopted by the Inter a) Statement of compliance 1.3.2. The Management Board approved the issue of the fi The controlling company Sava d.d. is Škofjeloška cesta 6, domiciled 4000 Kranj. in The consolidated fi nancial statements of the Sava Group include the con- con jointly subsidiaries, its d.d., Sava company trolling national Accounting Standards Board (IASB), and in accordance with the Companies Act. nancial statements on 27 March 2012. 1.3.1. 1.3. Capital of associated companies at 31/12/2011 and operating profit/loss of the associated companies in 2011 2011 in companies associated the of profit/loss operating and 31/12/2011 at companies associated of Capital Capital of associated companies at 31/12/2010 and operating profit/loss of the associated companies in 2010 2010 in companies associated the of profit/loss operating and 31/12/2010 at companies associated of Capital 130 ANNUAL REPORT 2011 FINANCIAL REPORT Control exists when d.d. the parent company has the power Sava by controlled entities the are Subsidiaries Subsidiaries consolidation. of needs the for out carried are EU the by adopted as IFRSs to adjustments whereas SAS, with accordance in statements financial individual prepare subsidiaries and company parent The Group. the of equity the to attributed is adjustment revaluation equity and Group, the of result financial the to added is profit attributable the i.e. considered, is method accounting equity the disposal, and in the case of the associated companies, of month the until interest the to proportion in cluded in are controlled jointly the of statements financial the clude the financial statements of subsidiaries, whereas in Group the of statements financial consolidated The 2011. in sold were companies controlled jointly Two companies. associated 6 and subsidiaries, 22 d.d., Sava company parent the includes Group Sava The Composition oftheSavaGroup non-controlling intereststookplace. In 2011, no business combinations and acquisitions of Business combinations a) Basisofconsolidation in theenclosedconsolidatedfinancialstatements.. applied the accounting policies for all periods shown consistently have Group Sava the in companies The 1.3.3. es. Actualresultsmaydifferfromtheseestimates. expens and income liabilities, and assets of amounts tions that affect the application of policies and reported assump and estimates judgments, make to agement man requires statements financial of preparation The d) Applicationofestimatesandassumptions USD, GBP, currencies: RSD, HRK, Bam,MKD, following andPLN. RUB,CZK, the use Slovenia, of out The Sava Group companies having their company seat differences canappearduetoroundingoff. together,adding When thousand. nearest minor the to rounded Euro, in presented is information financial All company.the of currency functional the is which Euro, The consolidated financial statements are presented in c) Functional andpresentationcurrency
Significant accountingpolicies - - - - - negative balance. a shows item this if even interests non-controlling der un- reallocated are subsidiary a in interests controlling non- to refer that Losses Group. Sava the of policies the to adapted are subsidiaries of policies Accounting control that ceases. date the until commences control that date the from statements financial consolidated the in included are subsidiaries of statements financial The controlling rightsareinaccord. and the capital cised orexchanged.Inallsubsidiaries exer be can time that at which considered are rights voting of effect and existence In the control, assessing activities. its from benefits obtain to as so an entity of policies operating and financial the govern to following items: the in described are statements, financial the in amounts on effect strongest the have which and policies accounting the implementing of process the in pared pre management the which judgments, critical and uncertainties of estimates important about data The revision affects. the which periods future all for and revised is timate estimates are recognised in the period in which the es accounting to re Revisions basis. ongoing an are on viewed assumptions underlying and estimates The • • • a a infcn ifune bt o cnrl oe the over control, not but influence, significant a has Group Sava the which in entities those are Associates Associates date thatjointcontrolceases. the until commences control joint that date the from basis, line by line a on nature similar a of items with expenses and revenues liabilities, assets, entity’s the statements include the partner’s proportionate share of partner. contractual the and financial consolidated The Group the between agreement contractual a by lished estab control, joint a has Group the activities whose over entities those are companies controlled Jointly Jointly controlledcompanies
Item 1.30.13,1.3.14–evaluatingfinancial Item 1.3.40–contingentliabilities Item 1.3.23-provisions instruments
- - - - -
FINANCIAL REPORT ANNUAL REPORT 2011 131
------c1) Non-derivative financial instruments Non-derivative financial instruments include ments in equity and invest debtor’s securities, operating and received equivalents, cash and cash receivables, other and granted loans, operating and other liabilities. Foreign operations The assets and liabilities of foreign operations includ ing goodwill and fair value revaluation upon consolidating are adjustments translated to euro at the refer ence exchange rate of the ECB ruling at the balance sheet date. The revenues and expenses operations are of translated to euro at foreign rates ruling at the dates of transactions. Foreign exchange gains/losses arising on retranslation are recognised in other com In equity. in reserve translation a as income prehensive the case of a which subsidiary, is not wholly-owned, a re- is reserve translation of share proportionate suitable allocated under the non-controlling share. At eliminat ing a foreign operation, the translation reserve amount is transferred in the income statement. c) Financial instruments functional functional currency at the reference exchange rate of the ECB ruling at that date. Foreign exchange gains/ losses present differences between the repayment val repayment the between differences present losses period the of beginning the at currency functional in ue adjusted by the amount of effective interest and pay ments during the period and the repayment value in foreign currency calculated at the reference exchange exchange foreign The end. period the at ECB the of rate gains/losses arising on translation are recognised in the income statement. Non-monetary assets and in foreign liabilities currencies that are stated denominated at fair value are translated to the functional currency at the reference exchange rate of the ECB ruling denominated liabilities and assets Non-monetary at date. the transaction in foreign currencies that are stated at fair the value of rate exchange reference are the at Euro to translated determined. ECB ruling at the date the fair value was Foreign exchange gains/losses arising from the translation re are recognised in the income the from arising statement, gains/losses with case the not is which calculation of capital instruments available for sale, or non-financial liability determined as a cash-flow hedge in equity. against risk, which is recognised directly ------b) Foreign currency b) Foreign in foreign currencies are translated to the Transactions functional currency at the reference exchange rate of the ECB ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign curren- cies at the balance sheet date are translated to the tions within the Sava Group are eliminated in prepar ing the consolidated financial statements. Unrealised gains arising from transactions with associates eliminated to are the extent of the Group’s interest in the entity. Unrealised losses are eliminated in the same way as unrealised gains, but only to the there is no evidence of impairment. extent that Foreign currency transactions Transaction eliminated on consolidation Transaction Intra-group balances and any unrealised gains and losses or income and expenses arising from transac The capital and controlling interests in associates are not in accord (explanation given under 1.2). Any im In the parent company, the associates are valued at cost while signs for impairment are examined at least once a The year. impairment is estimated by verifying the recoverable value, i.e. verification of the value in use (estimate of discounted cash flows) and the fair of both. value; the recoverable value is the lower financial and operating policies. At initial recognition, the investments are measured at equals the trading (acquisition) value, in fair the continua value which finan- consolidated The used. is method equity the tion cial statements include the Sava Group’s share of the revaluation equity and losses, or gains recognised total ba accounting equity an on associates of adjustments commences influence significant that date the from sis, until the date that significant influence ceases. When the Group’s share of losses exceeds its interest in an associate, the Group’s carrying amount is reduced to ex discontinued is losses further of recognition and nil cept to the extent that a company is liable for settling certain obligations on behalf of an associate. pairment of investments in associates is ascertained on the basis of an evaluation prepared by a certified company The evaluator. value of other investments in associates is examined once a year based on stock exchange prices or established evaluation models for companies, on the basis of which we ascertain if any impairments are needed. 132 ANNUAL REPORT 2011 FINANCIAL REPORT in theasset,andtosettleitsliabilityatsametime. has a legal right to either settle the net amount or cash group the if only and if sheet balance the in shown is Financial assets and liabilities are offset and net amount nated orinterrupted. termi expired, are group the of liabilities contractual recognition of financial liabilities is eliminated when the The asset. an sell or purchase to itself obliges group the when day the on for accounted are way ordinary an in out carried sales and Purchases risks benefits. including and party another to transferred is ment instru- financial the or expire flows cash the towards group the of rights contractual when eliminated is sets sions of the instrument. The recognition of financial as provi contractual the to party a becomes group the if recognised are instruments financial Non-derivative late tothetransaction. nised at fair value increased by costs which directly re- Non-derivative ready begun,disputable. al has procedure court a if and, doubtful considered respectively,amount, are total the in and term due the within settled be not assumed are which Receivables, value andisrecognisedintheincomestatement. cashable expected and receivable a of amount rying car the between difference a as measured is loss the at amortised cost resulted in a loss due to impairment, If impartial evidence exists that a receivable recognised sheet date. balance the on discounted not are receivables erating op Short-term rates. interest effective of method the rule, receivables are measured at amortised cost using ing documents on condition that they will be paid. As a correspond the from arise that amounts the in shown are receivables operating the recognition initial their At interest rateisapplied. effective of method The period. repayment the in ment state- income the in recognised is cost amortised and original the between difference any value, repayment their at recognised are they recognition initial after ue, val fair at recognised are loans recognition initial At Loans andreceivables Cash and cash equivalents comprise cash on ha Cash andcashequivalents financial instruments are initially recog- initially are instruments financial nd, on ------lents inthecashflowstatement. equiva cash and cash under included are Group, the in assets monetary managing of component a being and call on settlement to subject accounts transaction accoun transaction investment orgroupofinvestments. each for separately out carried is asset financial the of impairment the of examination The asset. financial the the balance sheet date is 20% lower than the cost value of on asset financial the of value fair the when ists ex investment financial a of examination the for dence evi impartial that considered is It expense. financial a as statement income the in recognised is impairment the period, long-term a over impaired is asset the that evidence impartial an exists there and reserve ation revalu negative a as directly recognised was sale for available asset financial a of value fair in decrease a If period aretransferredtoprofitorloss. the for income comprehensive other in shown losses and gains cumulative the investment, recognised the reversing In loss. or profit in recognised is impairment to due loss A income. comprehensive other in shown are sale for available instruments capital in es/gains loss exchange foreign and value fair in changes Any determined atleastonceayear. is impairments needed a for evidence the instruments, financial unlisted of case the in instruments; financial listed for date sheet balance at price bid share value: quent to initial recognition, they are measured Subse at market acquisition. of day the on value fair at sured mea initially available-for-saleare The assets financial in theparentcompanySavad.d. located are assets these of 99% than More funds. tual mu- in investments and companies unlisted and listed of stakes and shares in sale. investments comprise for They available assets financial under classified and Group the in located are securities Non-current Financial assetsavailableforsale a partytothecontractualprovisions oftheinstrumen becomes Group the which at date trade the on initially recognised are liabilities financial other All originated. are they that date the on liabilities subordinated and issued securities debt recognises initially Group The Non-derivative financialliabilities ts and call deposits. Overdrafts on Overdrafts deposits. call and ts t. ------FINANCIAL REPORT ANNUAL REPORT 2011 133 - - - - labour Items of property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. at Value cost includes costs that are directly attributed self-construct of cost The asset. an of purchase the to ed assets includes cost of materials, direct Dividends Dividends are recognised in the financial statements of the Group in the period in which the Shareholders’ payment. Meeting adopts a resolution on dividend Net earnings per share Share capital of the Group is divided in ordinary no- par value shares therefore the Group shows the basic earnings per share. The basic earnings per share is calculated by dividing the profit or loss attributable to ordinary shareholders by the weighted average num Recognition and measurement Capital Total capital of a company is its liability towards owners its which falls due if the company discontinues operation. It is determined on the basis of the sums invested by the owners, and the sums that appeared during operation and belong to the owners. It is - de own repurchased operations, from loss the by creased shares and withdrawals (payments). The total capital comprises share capital, capital reserves, revenue re serves, retained net profit, fair value reserve and own item. shares as a deductible Ordinary no-par value shares Incremental costs directly attributable to the issue of a as recognised are options share and shares ordinary deduction from equity. Repurchase of treasury shares Repurchase of treasury shares is shown as a deduc tion from total equity. year. financial the in outstanding shares ordinary of ber Diluted net earnings per share equal the earnings per basic share net as the Group has no preferential shares or exchangeable bonds available. The number of issued shares did not change during the year. plant and equipment d) Property, ------If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated, exercised, or the designation is revoked, then hedge accounting is discontinued. ment determined to hedge its exposure against risk are risk against exposure its hedge to determined ment recognised directly in profit or loss. mon hedge which instruments financial derivative With etary assets and liabilities in a hedg foreign currency, ing against risk is not performed. Changes in the fair recognised are instruments financial derivative of value in the income statement as part of foreign exchange gains and losses. Hedging against risks Cash flow hedging Changes in fair value of a derivative financial instru Derivative financial instruments are recognised initially at fair value; costs related to a transaction are recog- nised in profit or loss upon its appearance. After initial recognition derivative financial instruments are mea The Group applies derivative financial instruments to hedge its interest rate risk exposure. with dealt are changes related while value, fair at sured as described further in the report. C 2) Derivative financial instruments C 2) Derivative financial instruments instruments financial issue or hold not does Group The for trading purposes. Financial assets and liabilities are offset and the net amount presented in the statement of financial posi The Group derecognises a financial liability when its contractual obligations are discharged or cancelled or expired. tion when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liabil ity simultaneously. The Group has the following non- derivative financial liabilities: issued bonds, loans and borrowings, trade payables and receivables. financial liabilities are Such recognised initially at fair value plus any directly attributable transaction costs. Subse quent to initial recognition these financial liabilities are interest effective the using cost amortised at measured rate method. 134 ANNUAL REPORT 2011 FINANCIAL REPORT of theacquiredcompany. liabilities contingent and liabilities assets, ascertained sition cost and share of the group in the net fair value of and refers to a surplus or difference between the acqui- associated companiesandjointventures subsidiaries, of acquisition on arising amounts represents Goodwill Goodwill e) Intangibleassets Estimated usefullivesinthecurrentandcomparableperiodareasfollows: revaluation the in com presented and other income prehensive in recognised gain remaining any with property, specific the on loss impairment previous a reverses gain the extent the to loss or profit in nised recog is measurement repeated the in appears which property.investment as reclassified is and ue gain The val fair its at measured is property,property ment this invest an to changes property owner-occupied an If to assets fixed tangible from property of Transfer whether there existsanevidenceforanyimpairment. year a once least at determine companies Group Sava equipment. and plant property, of items separate as for accounted are they lives, useful ferent dif have property,equipment of and parts plant When chases ofproperty, plantandequipment. on qualifying cash flow hedges of foreign currency pur loss or gain any of income comprehensive other from ised borrowing costs. Costs may also include transfers capital as well as located, are they which at site the restoring and equipment and plant property, moving re and dismantling of costs and use, intended into putting its to attributed directly costs other and costs investment property Otherequipment Computerequipment Hotelfurnishing Manufacturingequipmentinrubbermanufacturing Officebuildings Hotels,commercialbuildings,warehouses Manufacturingbuildings ------
amount oftheequityaccounted investment. the carrying of part form that goodwill, including asset, ment loss on such an investment is not allocated to any impair an and investment, the of amount carrying the in included is goodwill of amount carrying the ments, invest for accounted equity of respect In losses. ment Goodwill is measured at cost less accumulated impair Subsequent measurement nised directlyintheincomestatement. recog is loss the while loss, or profit in immediately recognised loss remaining any with property, specific the to relating reserve revaluation the in included been previously had amount an that extent the to reserve revaluation the in presented and income prehensive com other in recognised equity.is in loss reserve Any on thedayofreporting. reviewed are lives useful and method the The of suitability depreciated. not is Land equipment. and plant property,of item an of part each of lives useful mated esti the over basis straight-line a on statement come in- the in recognised and calculated is Depreciation Depreciation as incurred. are recognised in the income statement as an expense costs other All reliably. measured be can item the of bodied with the item will flow to the Group and the cost em benefits economic future the that probable is it if incurred is cost that when item an such of part placing re of cost the equipment and plant property, an of item of amount carrying the in recognises group The Subsequent costs 25 to40years 20 to71years 25 to80years 6 to20years 5 to20years 4 to20years 2 to5years ------FINANCIAL REPORT ANNUAL REPORT 2011 135 ------Financial assets Financial assets are impaired when impartial evidence flows cash future expected the that shows which exists, from this asset is decreased as a result of one or sev eral events that can be reliably measured. Impairment loss related to financial assets stated at payment value is calculated as the difference between the net value of an asset and the future expected cash Im rate. interest valid originally an at discounted flows, statement. pairment loss is recognised in the income Impairment loss related to a financial asset intended for sale is accounted for at its present fair value. The cumulative impairment loss recognised in other com- prehensive income and stated in the fair value reserve is transferred to profit or loss. The cumulative loss that is removed from other comprehensive income recognised in and profit or loss is the difference between the acquisition cost and the current fair value less any loss. or profit in recognised previously loss impairment impaired an of value fair the period, subsequent a in If, available-for-sale debt security increases and the in crease can be related objectively to an event occur ring after the impairment loss was recognised in profit the with reversed, is loss impairment the then loss, and Any loss. or profit in recognised reversal the of amount subsequent recovery in the fair value of an impaired equity security is available-for-sale recognised in other comprehensive income for the period. With an important financial asset an impairment esti- mate is performed individually. The impairment esti collectively out carried is assets financial other of mate with regard to their common characteristic in risk ex posure. ing price in the ordinary course of business, less the the less business, of course ordinary the in price selling and selling expenses. costs of completion estimated expenditure includes inventories other of cost item The them bringing and inventories the acquiring in incurred to their existing location and condition. In the case of manufactured inventories and work in progress, cost includes an appropriate share of overheads based on normal operating capacity. The use of inventories is average prices. stated at weighted Inventories in the Real Estate division include interest hired for a specific project. expense for loans h) Impairment of assets ------Inventories are stated at the lower of cost and net re- alisable value. Net realisable value is the estimated Investment properties are properties which are held either to earn rental income or for long-term invest Depreciation is accounted for on a straight-line basis over the estimated useful lives of each part of an item plant and of equipment. property, Land is not depreci g) Inventories f) Investment property When it should be decided whether an asset is an in- vestment property or property, plant and equipment, the asset is an investment property if more than 20% income. rental earn to held as used is value entire its of The useful lives for investment property are the same plant and equipment. as for property, creases the future economic benefits embodies in the specific asset to which it relates. All other expenditure is recognised in profit or loss as incurred. rent and comparative periods for computer software to five years. and other patents and licences amount ment appreciation or for both. For evaluating invest ment properties the cost model is applied. Investment property is initially measured at cost, which includes purchase price and costs that can be attributed to the purchase such as legal fees, tax on property transfer and other transaction costs. ated. Amortisation straight- a on loss or profit in recognised is Amortisation line basis over the estimated useful lives of intangible assets, other than goodwill, from cur the for lives the useful estimated The use. date for available they are Subsequent expenditure Subsequent expenditure is capitalised only when it in Other tangible assets that are acquired by the Group and have finite useful lives are measured at cost less accumulated amortisation and accumulated impair Other intangible assets Other intangible Expenditure on research activities, undertaken with the with undertaken activities, research on Expenditure prospect of gaining new scientific or technical knowl- edge and understanding, is recognised in the income statement as incurred. earch and development Research and ment losses. 136 ANNUAL REPORT 2011 FINANCIAL REPORT where appropriate,therisks specifictotheliabilit and, money of value time the of assessments market current reflects that rate pre-tax a at flows cash future expected the discounting by determined are visions Pro- obligation. the settle to required be will benefits economic of outflow an that probable is it and event, past a of result a as obligation constructive or legal present a has Group the if recognised is provision A j) Provisions is done. benefits short-term definite with connection in work as expenses under stated and discounting without sured mea are benefits employee short-term for Liabilities i) Employeebenefits stated intheincomestatement. is Impairment asset. the to specific risks the and ey mon of value time the of assessments market current present value using a pre-tax discount rate that reflects the estimated future cash flows are discounted to their use, in value assessing In costs. selling less value fair or use in values fair their of greater the is unit erating cash-gen- a or asset an of amount recoverable The group. the in item each of amount carrying the to proportion in units) of (group unit the of assets other on then and unit, cash-generating the to allocated goodwill amount the of carrying the reduce first to as so classified is impairment an from arising unit cash-generating a in recognised Loss statement. income the in stated is Impairment assets. of groups or assets other from inflows financial on depend not do extent great a to that inflows financial generates which assets of group coverable value. A cash generating unit is the smallest re- is its exceeds amount items carrying its when cash-generating recognised or assets of Impairment estimated eachyearatthereportingtime. are notyet available foruse,the impairment amountis that or lives useful indefinite have that assets tangible in and goodwill For estimated. is amount recoverable pairment. If any such indication exists, then the asset’s im of indication an is there whether determine to date reporting each at reviewed are assets, tax deferred and inventories property, investment than other sets as non-financial Group’s the of amounts carrying The Non-fina ncial assets y. - - - - - statement. income the in recognised entirely are operations rent certained, actuary gains or actuary losses from the cur as When method. unit project the considered actuary lee benefits until retirement. In calculating, the certified jubi expected all of costs and amounts retirement of expenses includes calculation The date. sheet ance bal the at discounted benefits jubilee and amounts the amount of estimated future payments of retirement in that and exists benefits jubilee retire and amounts of ment payment for obligation legal a where tries coun those in employees for formed are Provisions ties forpensionsexist. which long-term provisions are formed. No other liabili for amounts, retirement and benefits jubilee employee and internal regulations the Group is committed to pay agreement collective legislation, the by stipulated As jubilee benefits employee and amounts retirement for Provisions sets associatedwiththatcontract. provision, it recognises any impairment loss on the as a forms Group the Before relationship. contractual the nating the contract or the expected costs for continuing termi- for costs expected the of value current of lower tion under the contract. Provisions are measured at the obliga its meeting of cost unavoidable the than lower are Group the by derived be to benefits expected the when recognised is contracts onerous for provision A Onerous contracts possible outcomeswithregardtotheirprobability. all considering and data warranty historical on based derlying products or services are sold. The provision is un the when recognised is warranties for provision A Warranties forproductsandservices of anindividualclaim. outcome estimated the of consideration in determined is suits law for provisions of amount The begins. ing Provisions for law suits are formed when legal proceed Provisions forlawsuits structure ofcompanies. organisational the in changes the with connection in employees to pay severance to refer and organisation Provisions for reorganisation include direct costs of re Provisions forreorganisation ------FINANCIAL REPORT ANNUAL REPORT 2011 137 ------tion to the stage of the contract completion. Contract revenue includes the initial amount determined upon the contract conclusion and possible changes in the volume of work under contract, requirements and per formance bonuses when it is probable they will result in revenue and can be Contract measured ex reliably. penses are recognised as incurred unless they create an asset related to future contract activity. The stage of completion is assessed to surveys by of work reference performed. When the outcome of a construction contract cannot be estimated reliably, contract revenues is recognised only to the extent of contract costs incurred that are likely to be recover able. An expected loss on a contract is recognised as incurred. Rental income Rental income from investment property is recognised in the income statement on a straight line basis over the term of the lease. m) Finance income and finance costs Net finance income comprises disposal the on gains income, dividend interest invested, funds income on of financial available-for-sale assets, foreign exchange gains and gains arising from instruments for ing against hedg- risk which are recognised in the income statement. Interest income is recognised as it arises by using the effective interest rate method. Dividend income is recognised in the income statement on the data when the shareholder’s right for payment is es tablished. Finance costs comprise interest expense on borrow- ings, expenses from the disposal of available-for-sale financial assets, foreign exchange loss, impairment losses in the value of financial assets and losses aris ing from hedging against risk, which are recognised in the income statement. The expense of lease pay the using statement income the in recognised is ments effective interest rate method except those which are attributed to intangible and tangible assets under con struction. Construction contracts can contract construction a of outcome the as soon As be estimated reliably, contract revenue and expense are recognised in the income statement in propor with regard to the number of days in each individual period. accounting
------relates to two accounting periods they are deferred Revenue from services rendered is recognised in the income statement with regard to the stage of comple- tion to date. The stage of completion is assessed by surveys of work performed. Revenue from in services the Tourism division is recognised as a service is rendered. When revenue from a tourist arrangement Services rendered Transfer Transfer of risks and rewards depends on individual provisions of the sale contract. When selling goods a transfer is performed when the goods arrive in a cus counts, rebates for further sale and quantity discounts. discounts. quantity and sale further for rebates counts, Revenue is shown when the buyer has assumed all significant risks and rewards of ownership and there exists a certainty regarding the recovery of the consid eration due, associated costs or the possible return of goods or products and when the Group ceases to make further decisions about sold products. tomer’s warehouse, and in certain international con signments a transfer is performed when the goods are loaded on a truck. Goods sold of value fair at recognised is sold goods from Revenue dis and paybacks less receivable or payment received Government grants are recognised in financial state l) Revenue enues and for other purposes in compliance with legal requirements. reasonable a is there when revenue deferred as ments assurance that it will be received and that the Group to it. will comply with the conditions attaching Grants that compensate the Group for expenses in- curred are recognised as revenue on basis a in the same systematic periods in which the expenses are that Grants grants. with compensated are that incurred compensate the Group for the cost of an asset strictly are recognised in the income statement as other operating income on a systematic basis over the use ful life of the asset. Provisions Provisions from assigned contributions are according formed to the Employment Rehabilitation accounting Act for salaries and at wages. These funds may be used for the material development of the company and covering various expenses and any deficit in rev k) Government grants k) Government 138 ANNUAL REPORT 2011 FINANCIAL REPORT • EU: the by adopted Board Standards Accounting tional Interna the by issued were that apply standards isting ex the in updates following the period, present the In presentperiod p) Standardsandinterpretationseffectiveinthe assess theGroup’sperformance. and segment the to allocated be to resources about the Management Board of Sava d.d. to make decisions by regularly reviewed are results operating segments’ discrete financial information is available. All operating segments operating For expenses. incur and enues either in business activities from which it may earn rev engages that Group the of component a is segment A o) Segmentreporting Deferred taxfromlosseswasnotaccountedfor. realised. be will benefit tax related the that probable longer no is it that extent the to reduced are assets tax Deferred utilised. be can asset the which against able that it is probable that future taxable extent profits will be the avail to only recognised is asset tax deferred A at thebalancesheetdate. enacted substantively or enacted rates tax using ties, liabili and assets of amount carrying the of settlement or realisation of manner expected the on based is ed provid- tax deferred of amount The purposes. taxation financial reporting purposes and the amounts used for for liabilities and assets of amounts carrying the tween li be- differences temporary for providing method, ability sheet balance the using provided is tax Deferred adjustment to tax payable in respect of previous years. any and date, sheet balance the at enacted stantially sub- or enacted rates tax using year, the for income taxable the on payable tax expected the is tax Current recognised inequity. to items recognised directly in equity, in which case it is the income statement except to the extent that it relates in recognised is tax Income tax. deferred and current comprises year the for loss or profit the on tax Income n) Inc
ning on1January2011,or later). on 19 July 2010 (effective for annual periods begin EU the by adopted definition, party related the to as explanation an and government, the to related companies disclosing the requirementsfor plifying sim- Disclosure; Party Related 24: IAS Amended ome tax
------become effective: yet not have but issued were EU the by adopted tions explana and amendments standards, following the statements financial these approving of date the On effective and adopted by the EU, which are not yet • • • • q) Standards and policies ofthecompany. financial the in changes any existing cause not did the standards to amendments these of adoption The • •
interpretation). ary 2011 respectively, depending on the standard / later,or 2010 July 1 on beginning ods Janu 1 and peri- annual for applied be should (amendments which on 18 February 2011 was adopted by the EU minate inconsistencies and to explain the wording, eli- to order in mostly 13), IFRIC 34, IAS 27, IAS 1, IAS 7, IFRS 3, IFRS 1, (IFRS 2010 May 6 on unced anno IFRSs the improving for project annual the from originating (2010) ; IFRS in Improvements Updates of various standards and interpretations later). or 2010, July 1 on beginning periods annual for ve (effecti- 2010 June 30 on EU the by adopted time, first the for IFRS apply which users for 7 IFRS to exclusion from comparative disclosures according restricted Standards; Reporting Financial tional Amended IFRS 1: First-Time Adoption of Interna- 2010, orlater). February 1 on beginning periods annual for tive (effec- 2009 December 23 on EU the by adopted options share of issue the for accounting tation; Presen- Instruments Financial 32: IAS Amended riods beginningon1July2011, orlater). pe annual for (effective 2011 November 22 on EU sures; transfers of financial assets, adopted by the Disclo- Instruments: Financial 7: IFRS Amended July 2010,orlater). 1 on beginning periods annual for (effective 2010 Equity Instruments; adopted by the EU on 23 July IFRIC 19 – Extinguishing Financial Liabilities with January 2011,orlater). 1 on beginning periods annual for (effective 2010 July 19 on EU the by adopted payments funding Interaction their and ments Require Funding Minimum Asset, Benefit fined De- a on Limit The – 19 IAS 14, IFRIC Amended interpretations issued by the IASB
avne minimum advance ;
- - - - -
FINANCIAL REPORT ANNUAL REPORT 2011 139 ------; improved IAS 39 Financial Amended Amended IAS 1 Financial Statements Presentati on; presentation of items of other comprehensive income (effective for annual periods beginning on 1 July 2012, or later). Amended IAS ; 12 deferred Income tax: Taxes re- covery of respective assets (effective for annual on 1 January 2012, or later). periods beginning Amended IAS 19 Employee Benefits (effective benefits after-employment for accounting or 2013, January 1 on beginning periods annual for later). Amended IAS 32 Financial Instruments Presen tation; offsetting financial assets and liabilities (ef fective for annual periods beginning on 1 January 2014, or later). IFRIC 20 Stripping Cost in the Production Phase be periods annual for (effective Mine; Surface a of ginning on 1 January 2013, or later).
1.3.4. Determination of fair values the in applied are that policies accounting the of view In Group and the breakdowns, it is required to determine assets non-financial and financial both of value fair the and liabilities. The Group determined fair values of in dividual groups of assets for measuring and reporting purposes in accordance with the methods described below. Where additional explanations in respect assumptions of for the determination of fair values are required, these are mentioned in notes to individual items of assets or liabilities of the Group. • • • • • The company expects that introducing these and standards, existing the to amendments and dards stan explanations in the initial period will not have a signifi cant impact on these financial statements. At the same time, the accounting of hedging against risk in relation to a portfolio of financial assets and li- abilities whose principals the EU has not adopted yet, still remains unregulated. The company estimates that accounting of hedging against risk in relation to a portfolio of financial assets and liabilities in accordance with the Instruments: Recognition and Measurement would not have a significant impact on the financial ments of state the company if they had been applied on the balance sheet date.
------; (ef ; mandatory interpretations (effective for annual for (effective prior to their becom- interpretations ; (effective for annual periods begin mended IFRS 9 Financial Instruments, and IFRS and Instruments, Financial 9 IFRS mended 7 Financial Instruments: Disclosures date of enacting and disclosing of transitions. A ; (effective for annual peri- annual for (effective ; Ventures Joint and ates ods beginning on 1 January 2013, or later). Amended IFRS 7 Financial Instruments: Disclo- sures; offsetting of financial assets and liabilities Janua 1 on beginning periods annual for (effective ry 2013, or later). Amended IFRS 1 Adoption First-Time of Interna- tional Financial Reporting Standards; high hyper- users, for dates agreed the eliminating and inflation who use IFRS for the first time (effective for annual periods beginning on 1 July 2011, or later). IAS 27 (amended in 2011) Separate Financial Statements Associ in Investments 2011) in (amended 28 IAS IFRS 13 Fair Value Measurement; (effective for annual periods beginning on 1 January 2013, or later). fective for annual periods beginning on 1 January 2013, or later). IFRS 11 Joint Arrangements; (effective for annual or later). periods beginning on 1 January 2013, IFRS 12 Disclosure of Interest in Other Entities; Janua 1 on beginning periods annual for (effective ry 2013, or later). ning on 1 January 2013, or later). S 9 Financial Instruments; Financial 9 IFRS IFRS 10 Consolidated Financial Statements periods beginning on 1 January 2015, or later). periods beginning on 1 January 2015,
r) Standards and interpretations issued by the IASB the Presently, IFRS as adopted by the EU do not sig ing effective. The company expects that the adoption of these standards, amendments and will have no significant impact on the financial state in the initial period of use. ments of the company by the EU but not yet adopted nificantly differ from the regulations adopted by International the Accounting Standards Board (IABS), ex cept for the following standards, amendments to the existing standards and explanations which were not approved for use: • • • • • • • • • • The company decided not to adopt these standards, amendments and 140 ANNUAL REPORT 2011 FINANCIAL REPORT ness, furthermore the allocation of maintenance of allocation the furthermore ness, modation, and general perception of their creditworthi or likely to be in occupation after letting vacant accom commitments lease meeting for responsible or pation occu- in actually tenants of type the reflect Valuations counted netcashflowsattheannuallevel. dis- of basis the on value property of calculation the in applied is risks erty.specific the reflects that yield A prop- the out renting from flows cash expected the of aggregate the considering by prepared are valuations In the absence of current prices in an active market, the and willingly. tion wherein the parties had each acted knowledgeably transac length arm’s an in seller willing a and willing buyer a between valuation of date the on changed ex be can property a which for value estimated the The fair value is based on market values, which equals Investment property use andeventualsaleofassets. discounted cash flows expected to be derived from the The fair value of other intangible assets is based on the that arepartofcreatingtherelatedcashflows. assets other all on return fair a deducting after valued is asset subject the whereby method, earnings excess ness combination is determined using the multi-period busi a in acquired relationships customer of value fair The owned. being trademark or patent the of result a as avoided been have that payments royalty timated es discounted the on based is combination business a in acquired trademarks and patents of value fair The Intangible assets from theuseordisposalofassets. discounted cash flows, which are expected to originate the fair value is being estimated by using the method of tings is based on the quoted prices for similar items, or fit and fixtures equipment, plant, of value market The willingly. and knowledgeably acted each had parties the wherein transaction length arm’s an in seller willing a and buyer willing a between valuation of date the on exchanged be can property a which for amount mated market values. The market value of property is the esti nised as a result of a business combination is based on recog equipment property,and of plant value fair The Property, plant an d equipment and ------
sis ofexaminingifthereexistsaneedforimpairment. and stakes which are not listed is estimated on the ba shares of value fair The date. reporting the at price bid for trading and available for sale is their quoted closing The fair value of financial instruments classified as held Investments inequityanddebtsecurities plete andselltheinventories. able profit margin based on the effort required to com estimated costs of completion and sale, and a reason selling price in the ordinary estimated course of business less the the on based determined is business combination a in acquired inventories of value fair The Inventories served validlyandwithintheappropriatetime. ieig h dt fo te noe ttmn for statement income the from data the sidering con by prepared been has statement flow cash The Preparation ofthecashflow statement similar leaseagreements. to reference by determined is interest of rate market the leases financing For reporting. of day the on rate principal and interest discounted at the market interest considering the current value of future payments of the For the purpose of reporting the fair value is calculated Non-derivative financialliabilities surement date. market interest rates for similar instruments at the mea- using and contract each of maturity and terms the on ness by discounting estimated future cash flows based reasonable for tested are quotes Those quotes. ker bro on based is swaps rate interest of value fair The Derivatives rate todate. interest market the at discounted flows cash future of longer than one year, is calculated as the current value is maturity whose progress in work construction cept ex receivables, other and operating of value fair The Operating andotherreceivables n we aporae one-oie, ae been have counter-notices, appropriate when and revisionar with pending are renewals lease or views re property.rent the When of life economic remaining insurance between the Group and the lessee, and the icess i i asmd ht l notices, all that assumed is it increases, y anticipated
the ------FINANCIAL REPORT ANNUAL REPORT 2011 141 ------ions, thus causing the company to make a fi ksima Invest d.d. for 14,780 shares issued by Dai value the in DNGG designation the with d.d. mond of €1,155 thousand. For the reporting purposes, the fair value of the concluded forward sale con- on based and 2011, of end the at verified was tract the performed evaluation and the presence of ad was it execution its with connection in risks ditional impaired by €1,155 thousand in 2010 and 2011. ding d.d. whose balance at the beginning of 2011 amounted to €24,374 thousand. In 2011, Holding d.d., settled NFD a part of its liabilities origina- tho €2,000 of amount the in principle the from ting usand; the outstanding amount totalled €22,374 Holding d.d. NFD granted loans to The thousand. were entirely secured with bills of exchange and securities. The estimated value of the pledged se curities amounts to €12,998 thousand, or 72% of total value of these two short-term loans. Due to insufficient value of the loan collateral, the loans were impaired by €6,687 thousand at the end of 2011. Sava Sava d.d. granted short-term credits to NFD Hol d.d. made a forward sale contract with Ma
nancial loss. Credit risk is directly connected with com- with connected directly is risk Credit loss. nancial mercial risk and presents a danger that trade receiv ables or receivables due from other business partners a delay or not at all. will be settled with For this purpose, we devote special attention to cus tomer solvency. We regularly pursue debts to be col lected and due receivables, maturity of receivables and fluctuations in average payment terms. To de- crease exposure to this risk we make use of the cus carry and payers bad supervise to system rating tomer out ongoing compensations. The majority of trade re ceivables in manufacturing and partly also in tourism services is insured with SID (Prva Kreditna Zavaroval nica d.d.), Ljubljana. In certain of our divisions it is not always possible to insure receivables in this manner, risk credit to exposure minimise to measures therefore rely on our own in-depth customer rating and insur ance estimates. In 2011, the major part of loans risk were caused by transactions that in the past were Holding d.d. and Maksima Invest d.d. made with NFD Given the described events we estimate credit risk in the Sava Group as high. obligat • • - nstrument will not meet its er 2011 (for the past period F Guarantees and sureties Capital management Credit risk Solvency risk Interest rate risk currencyrisk oreign
Credit risk This involves the risk that a customer engaged in an agreement on a financial i Risk management policies Risk management is carried out centrally in the parent company of the Sava Group, which regularly reports to management boards and company management The area. management risk the of operation the about policies are established to identify and analyse risks faced the by the Group in daily business. Based on performed analyses, appropriate limits and controls are defined. Considering the set limits, risks are moni • • • We present the policies in risk management and the types individual to companies Group Sava of exposure of financial risks. Further quantitative disclosures are statements. included in the notes to the consolidated tored and verified. Through continual training and by way of applicable standards and the procedures de- fined for risk management, the Group’s companies aim to develop a disciplined and constructive control environment in which all employees understand their roles and obligations. The management teams of the management risk on informed regularly are companies issues. • • • In the Sava Group, we examine and analyse economic analyse and examine we Group, Sava the In circumstances and regularly pursue the exposure to various risks and takes measures to manage them. The parent company manages financial risks centrally Sava the 2011, In Group. Sava entire the of level the at Group was exposed to the following risks from its use of financial instruments: 1.3.5. Financial risk management 1.3.5. Financial period January-Decemb January – December 2010), the balance sheet data as at 31/12/2011 and 31/12/2010 (for the past data 31/12/2010 and 31/12/2009), and other required data. not are which values excludes statement flow cash The and expenses. connected with revenues 142 ANNUAL REPORT 2011 FINANCIAL REPORT Sava d.d. and its 2011 operating result. These risks These result. operating 2011 its and d.d. company Sava parent the of assets financial of structure the changed strongly assets financial of value the in decrease A uncertainty. high and situation economic poor the of consequence a as investments financial in fluctuations price high with marked was 2011 year The strategy.outlined the of implementation the influences it and assets financial on return planned the achieving with associated is it as Group, Sava the in risks tant mos the of one is change value fair the in Risk Risk inthefairvaluechange(pricerisk) kets, thesolvencyriskinSavaGroupishigh. mar money the in circumstances difficult more to Due erations. op from profit enhance to steps other and nalisations ratio costs flow, cash the strengthening for activities needed the operations, the stabilising for measures the out carry companies Group All level. indebtedness sustainable a time same the at and lower a in strate demon will which investments, divesting for activities the determines and companies of liabilities financial of plan restructuring a incorporates also strategy The ed. new long-term business strategy until 2014 was adopt September,In partners. – banks the a with relations its arranging and liabilities financial of settlement regular companies, all of liquidity suitable assuring to tention at its of much devoted Group Sava the year, this In regular balancingofliabilities. and solvency suitable a assuring in entities of flexibility reduce they consequently, and, funds to accessibility ditional funds to entities. By doing this, they are limiting vative in renewing the existing loans and approving ad- favourable in 2011. Banks are becoming highly conser un heavily grew markets money in circumstances the situation, economic aggravated generally the to Due level oftheparentcompanyandsubsidiaries. the at mechanisms various using by managed is risk Solvency conditions. favourable most under nancing fi companies Group Sava all enable and companies to assure suitable liquidity of the parent and subsidised standardised financial policy. The goal of such policy is manage solvency risk centrally and have established a financial obligations in due time. In the Sava Group, we its meet not may company a that risk the involves This Solvency risk t impor t ------vency. sol suitable a assure to order in investments certain divesting for designed plan a have and opportunities investment study continually We interest. significant a hold subsidiaries its or d.d. Sava which in panies, com the of operations the supervising actively by and portfolio investment the diversifying by decreased are nection. market that would effectively eliminate risks in this con the in available instruments hedge suitable no were mentioned currencies, and the above- Euro interest rate, there the for rate interest the between differences rate interest large the to due as 2011 in instruments financial derivative any use not did we risks currency foreign Denar.against ToMacedonian hedge and nar of Kuna,Croatian, as such currencies foreign Serbian Di fluctuations the to exposed is it why is which via, Yugoslaformer the of markets the in investments has company parent The risk. currency foreign to posure ex the avoid to as so business the adapting by hedge natural a through risk this of most decrease and tions, ic movements as well as foreign exchange rate fluctua Chinese Yuan). We actively pursue the macro-econom Dollar,America PolishZlot, PoundSterling, (British too its of part business is carried out in other minor international currencies but zone, Euro the in business its conducts mostly Group Sava The rates. exchange cy curren- foreign in changes in to due loss benefits economic a of risk the involves risk currency Foreign Group iscovered. Sava the of indebtedness loan long-term of 3.7% ing, hedg- of type this using fluctuations; rate interest with connection in risks avoid to used are instruments cial main coordinator of all activities. Suitable derived finan a as appears d.d. Sava company parent the which in determined, are Group Sava the inside con debts tracting of policy standardised a and banks with ance appear standardised A risk. this managing for nisms mecha various of use makes and manner centralised a in risk of type this manages Group Sava interest The rates. market changed the of account on change will debts contracting of cost and instruments nancial fi of value the that risk the involves risk rate Interest Interest rateandforeigncurrencyrisk ------
FINANCIAL REPORT ANNUAL REPORT 2011 143 ------1.32 -960 2010 -8,293 437,480 429,187 323,352 324,312 € in thousands
0 2.62 2011 -10,649 434,830 165,796 445,479 165,796
Rubber T Real Estate division Investment Finance division Other Operations Trade Network Trade division ourism Manufacturing division with the Foreign
• • • • • organisational structure of the Group. Operating segments The Sava Group consists of the following operating segments: Financial results, assets and liabilities by segment in clude items that can be attributed directly to the seg ment, which is provided by the suitable legal in formal of the Sava Group. In 2011, the Sava Group revised its long-term which business is strategy, based on the financial restructuring programme for liabilities and di vesting investments of the Group. In this the manner, capital structure will improve and the trust on the part a and operations the in partners other and investors of of the Group will enhance. long-term development Sava d.d. has neither introduced an employee stock option scheme. In July 2011, the the company employees of the offered Sava Group to repurchase own shares, which it had acquired in accordance with the second and eighth indent of the first paragraph of Ar ticle 247 of the Companies Act-1 in 2010. Sava re for d.d. shares owns 30,541 of amount entire the offered purchase, which represented 1.52% of the company’s share capital. Regulatory bodies do not have any capital ments towards require the parent company or subsidiaries in the Sava Group. ------Segment reporting
2. Less: cash and cash equivalents 3. Net debts (1. – 2.) equity 4. Total 5. Less/plus: amounts accumulated in equity relating to cash flow hedges 1. Total liabilities 1. Total 7. Debt to adjusted capital ratio at 31/12 (3/6) 6. Adjusted capital (4. – 5.) The Group’s debt to adjusted capital ratio was as follows: The Group’s debt to adjusted capital The prices of transfers among segments are measured are segments among transfers of prices The on a pure business basis. The performance of individ tional structure and management of the Group. Internal Group. the of management and structure tional management reports are reviewed monthly in regular strategic meetings by company management teams and the Management Board of Sava d.d. ual segments is measured at profit or loss of the seg ment before income tax. 1.3.6. The Sava Group reports by operating segment. The basic reporting form, which arises from the strategic business units, is founded on the internal organisa ly-owned ly-owned by the controlling company. At 31/12/2011, guarantees and sureties to the subsidiaries amounted to €17.7 million (in 2010: €20.3 million). A suitable capital structure assures investor, creditor and market confidence and sustainable development Capital management In accordance with its policy Sava d.d. the offers financial guarantees parent and sureties for company hired loans mainly to the subsidiaries which are whol Guarantees and sureties Guarantees and To decreases risks in connection with fluctuations in in- in fluctuations with connection in risks decreases To terest rates and foreign currencies, we attentively pur sue the situation in money markets and study various scenarios to hedge against these fluctuations. In the Group Sava the that estimate we circumstances, given cur foreign and rate interest to exposed strongly not is rency risks. 144 ANNUAL REPORT 2011 FINANCIAL REPORT Shares in the profit/loss of associated companies referred entirely to the Investment Finance division and are shown under shown are and division 1.3.36. Finance Investment the to entirely referred companies associated of profit/loss the in Shares Data byoperatingsegmentfortheyear2011 Sava Group’sdivision. the in included are that segments the operating Group’s of respect in presented is information Segment 1.3.7. Liabilities Investments inassociates Assets property Impairment ininvestment Revenues fromservicesrendered Revenues fromgoodssold Net profit/lossfortheyear Share in profit/ loss of associates Interest expenses Interest income Other operatingincome Change ininventories Revenues frommerchandisesold Rental income Total revenues and equipment Impairment inproperty, plant Depreciation and equipment ofproperty,Purchase plant
Data bysegment
MANUFACTURING WITH FOREIGN NETWORK 117,299 142,414 109,609 RUBBER 41,698 28,678 -1,168 TRADE 6,727 4,249 3,221 1,160 1,815 408 810 750 402 0 0 1
TOURISM 183,427 91,151 68,547 65,436 -2,860 -3,646 8,222 2,118 1,389 1,226 615 496 64 0 0 0 0 0 the businesspartofannualreport. in presented is division particular a by operation The -10,151 22,987 48,954 ESTATE -1,331 -2,474 4,454 5,962 REAL 242 192 199 389 378 19 0 0 0 0 0
OPERATIONS 11,281 OTHER 7,145 6,595 1,636 1,312 2,159 1,431 -943 555 142 836 716 -91 29 0 0 0 0
-146,877 322,384 199,783 500,438 FINANCE -18,985 INVEST- 10,941 2,488 5,532 3,662 1,849 MENT 766 63 21 0 0 0 0 0 operations -250,123 Excluding -39,886 -28,884 -20,516 -1,988 -2,269 -8,531 -1,271 1,988 1,558 Group -124 -21 € inthousands -2 0 0 0 0 0 -157,159 199,847 611,276 198,658 445,480 -22,446 10,941 13,964 96,367 64,085 29,316 2,196 7,055 4,015 4,942 Total 408 -67 1 FINANCIAL REPORT ANNUAL REPORT 2011 145 0 142 Total Total 3,872 5,220 6,861 3,137 2,570 84,461 61,573 25,477 21,718 15,358 -21,360 -99,899 193,783 176,730 202,321 760,832 319,158 437,481 0 0 0 -2 € in thousands € in thousands -21 -80 -392 -583 -460 Group 2,808 -3,661 -2,793 -11,754 -17,224 -33,053 -14,365 Excluding -261,993 -103,785 operations 0 0 0 0 105 142 MENT 1,588 3,761 4,966 1,900 3,831 2,570 10,315 INVEST- Other -17,956 -82,152 FINANCE 648,020 319,094 324,905 29,232 24,552
0 0 0 41 18 -92 771 301 606 583 2,282 1,405 1,404 1,479 6,204 7,679 OTHER -2,336 10,652 OPERATIONS
0 0 0 0 0 37 20 114 580 287 REAL 1,528 5,734 -2,318 -2,734 ESTATE 21,915 29,328 64,344 44,257 72,600 59,363 0 0 0 0 0 The sale to the largest buyer of the Sava Group, which is the buyer of Rubber Manufacturing, amounted to €9,080 thousand in 2011 (in 2010 a buyer of Rubber Manufacturing in the amount of €7,832 thousand). 64 982 493 891 1,139 2,242 8,438 -2,661 -2,227 62,347 64,961 90,579 186,579 TOURISM
Other EU countries 0 0 0 0 0 729 903 -217 4,822 3,474 3,913 3,915 TRADE TRADE -1,140 94,547 24,685 73,848 RUBBER 124,566 113,231 NETWORK 91,951 92,815 WITH FOREIGN Slovenia MANUFACTURING
2011 2010 Impairment in investment property Impairment property, plant Impairment property, and equipment Purchase of property, plant Purchase of property, and equipment Depreciation Sales revenues from goods sold Sales revenues from Operating revenues total Revenues from services rendered Revenues from services Revenue from rents Change in inventories Other operating revenues Interest expenses associates of loss income/ in Share Revenues from merchandise sold Revenues from merchandise Interest income Assets Net profit/ loss for the year Investments in associates Liabilities The assets are not segmented by region due to the fact that the carrying amount of assets relating to the companies in Slovenia represented 97.6% of the total assets of the Group (in 2010: 97.8%). Data about sales revenues by region Data about sales revenues by region Data by operating segment for the year 2010 operating segment Data by 146 ANNUAL REPORT 2011 FINANCIAL REPORT statements included the data from the income state income the from data the included statements financial consolidated The sold. were Poreč, d.o.o., a 50% stake, Sava Schäfer d.o.o., Kranj and Sava IMG has company parent the which in companies, two The 1.3.9. d.o.o., Ptuj Terme d.o.o., Radenci 3000 Zdravilišče Termed.o.o., companies the of merger the 2011, In the SavaGroup. of statements financial the affect not mentioned did the transaction d.d.; Sava to transferred was d.o.o. IPN Sava in d.o.o. IP Sava of stake 100% a 2011, In state- ments oftheSavaGroup. financial the affect not did transaction tioned men the d.o.o.; Savatech to transferred was d.o.o. 2011 In panies areminimumanddonotexceed€3thousand. com this with connection in value Porečthe sold; was 2011 In difference inthepricetotalling€988thousand. positive a made d.d. Sava which at thousand, €1,100 thousand. to €858 amounted stake sold the for payment received The capital of value proportionate the thousand, €1,363 to amounted company sold the of share the to proportionate assets The sold. was Kranj In 2011 1.3.8.
, a 50% ownership stake in Sava Schäfer d.o.o., , a 76% stake held by Sava d.d. in Sava Rol Sava in d.d. Sava by held stake 76% a , a 0 onrhp tk i Sv IG d.o.o. IMG Sava in stake ownership 50% a , Jointly controlledcompanies and otherchanges and jointlycontrolledcompanies, ownership stakesinsubsidiaries Acquisitions anddisposalsof
- - - In 2010 the SavaGroup. of statements financial the affect not did transaction mentioned The thousand. €3,308 to amounted d.o.o. value of assets of Sava GTI d.o.o. merged to Savatech The 01/06/2010. on companies of register the in tered en was this merger simplified a about agreement the of basis the on 01/01/2010; on out carried was merger In 2010 was achieved. price in difference no which at thousand, €0.1 to ed amount holding ownership 70% a for payment ceived re- The thousand. €2 to amounted d.o.o., Split Trade Sava of capital the sale, of day the On sold. was Split TradeSava d.o.o., of stake ownership 70% a 2010, In state- ments oftheSavaGroup. financial the affect not did transaction tioned men The 30/12/2011. on companies of register the in entered was and Turizemd.d. Sava named company d.d., the cut-off date being 30 June 2011. The merged Termeand Bled Hoteli Sava to merged d.o.o. Lendava portion ofassets,liabilities,revenuesandexpenses. appropriate the below present we and method dation consoli- proportionate the applied have we solidating, ment until the date of disposal (February 2011). In con , GTI d.o.o. was merged to Savatech d.o.o. The , therewerenobusinesscombinations. - - - - FINANCIAL REPORT ANNUAL REPORT 2011 147 - 1 8 75 87 11 29 51 45 -10 289 317 813 100 877 -483 -140 2010 1,869 1,327 1,327 -1,193 € in thousands - 0 0 2 0 0 0 0 0 0 0 0 0 0 0 47 -82 -30 -10 308 -141 2011 Cost of goods, materials and services Cost of goods, materials Labour costs Equity and liabilities Current loans Current operating liabilities Income statement goods sold and services rendered Net sales revenues from Other operating revenue Other operating expenses Inventories borrowings Interest-bearing Operating and other receivables Cash and cash equivalents Assets Equity Provisions Non-current operating liabilities Non-current loans Net profit for the year Tax Non-current receivables Balance sheet plant and equipment Property, 148 ANNUAL REPORT 2011 FINANCIAL REPORT The dataaboutthevalueofassetsthatwereimpairedisshownunder1.3.33. Movement ofproperty, plantandequipmentoftheSavaGroupin2011 1.3.10. Property, plantandequipment Transfer toassetsfor sale Disposals Transfers Balance at01/01/2011 ACCUMULATED DEPRECIATION Disposals Transfers Transfer toassetsforsale intouse Put Balance at 31/12/2011 Write-offs Decrease due to disposal of companies Balance at31/12/2011 Write-offs Decrease duetodisposalofcompanies Decrease inadvancepayments Balance at 01/01/2011 CARRYING AMOUNT Impairments Increase inadvancepayment Acquisitions Balance at01/01/2011 Cost Balance at 31/12/2011 Depreciation 26,235 26,235 28,800 28,800 -2,268 Land -297 -1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Buildings -120,503 -126,581 153,081 279,661 159,546 280,049 -1,735 -5,710 1,660 -548 -658 144 425 -46 -32 19 17 0 0 0 0 0 machinery Plant and -58,365 -55,609 29,561 85,169 32,100 90,465 -1,249 -6,306 -1,942 -6,113 6,261 1,215 3,456 1,902 -469 303 404 -1 0 0 0 0 equipment -13,878 -14,525 18,960 19,454 -1,443 Other 4,435 5,576 -196 -583 -162 -454 391 161 303 406 434 -9 4 0 7 0 0 construction PPE under -1,644 1,871 1,871 2,039 2,039 1,026 1,533 -173 -788 -113 -10 € inthousands 0 0 0 0 0 0 0 0 0 0 0 -192,746 -196,714 215,182 411,896 228,060 420,807 -13,266 -3,265 -2,318 -6,515 -1,267 -2,541 6,441 1,026 7,055 2,353 Total -441 -788 -298 535 411 0 FINANCIAL REPORT ANNUAL REPORT 2011 149 0 12 381 138 893 385 191 191 -194 -847 Total 6,861 1,752 8,005 8,005 -1,475 -1,821 -2,668 17,857 17,857 34,651 56,468 -14,420 420,807 420,570 239,064 228,061 117,172 117,172 -192,746 -181,506 0 0 0 0 0 0 0 0 0 0 0 € in thousands € in thousands -74 381 -847 -403 1,612 2,039 1,370 1,370 2,039 PPE under construction 0 0 0 7 0 4 0 -7 350 123 285 -120 -295 6,822 5,576 Other -1,594 19,454 19,519 Value of mortgages on real estate Value -13,878 -12,697 equipment 0 0 12 191 191 310 138 307 -194 8,005 8,005 2,825 2,875 1,442 -3,925 -1,477 -1,460 -7,334 17,654 17,654 34,651 90,465 94,387 38,582 32,100 -58,365 -55,805 121,941 121,941 182,442 182,442 Plant and machinery 0 0 0 0 0 87 74 25 -49 2,586 2,016 -1,005 -5,492 -2,105 280,049 276,414 163,410 159,546 -113,004 -120,503 Buildings 0 0 0 0 0 0 0 0 0 0 0 0 0 58 57 -196 Land 28,800 28,880 28,880 28,800 Carrying amount of mortgaged assets Sava IP d.o.o. ENSA BH d.o.o. Savatech d.o.o. d.d. Sava Turizem Total Sava d.d.* Disposals Balance at 31/12/2010 Increase in advance payment Increase in advance Cost Balance at 01/01/2010 Decrease in advance payments Decrease in advance Transfers Write-offs DEPRECIATION ACCUMULATED Balance at 01/01/2010 Decrease due to disposal of companies Acquisitions CARRYING AMOUNT CARRYING 01/01/2010 at Balance Put into use Depreciation Impairments Balance at 31/12/2010 at Balance Disposals Decrease due to disposal of companies 31/12/2010 at Balance Transfers Write-offs *The value of mortgages in Sava d.d. includes a mortgage placed on investment property in the value of €1,574 thousand. *The value of mortgages in Sava d.d. includes a mortgage placed on investment Mortgages value at 31/12/2011 Movement of property, plant and equipment of the Sava Group in 2010 and equipment of the Sava Group plant Movement of property, The data about the value of assets that were impaired is shown under 1.3.33. 150 ANNUAL REPORT 2011 FINANCIAL REPORT * The value of mortgages in Sava d.d. also includes a mortgage placed on investment property in the amount of €1,628 thousand. Movement ofintangibleassetstheSavaGroupin2011and2010 1.3.11. Intangibleassets Mortgages valueat31/12/2010 The depreciationofintangibleassetswasincludedunder intheincomestatement. Total Sava HoteliBledd.d. Terme Lendavad.o.o. Terme Ptujd.o.o. Zdravilišče Radencid.o.o. Terme 3000d.o.o. Savatech d.o.o. Sava IPd.o.o. Sava d.d.* Balance at01/01 COST VALUE Balance at31/12 Write-offs Transfer toassets for sale Decreases Transfers Additions Balance at31/12 Amortisation Balance at01/01 ACCUMULATED DEPRECIATION Balance at31/12 Balance at01/01 CARRYING AMOUNT Write-offs Transfers Transfer toassets for sale Book valueofassetsencumbered with mortgages 187,534 14,890 20,254 25,027 56,541 26,065 19,530 16,717 8,510
-1,219 -1,205 2,157 1,678 2011 -151 -156 -238 -119 Mortgage valueonproperty 459 951 72 59 47 -6 0 € inthousands € inthousands 74,113 13,500 15,911 16,717 -1,205 -1,295 4,573 9,781 7,945 5,000 2,319 2,157 1,024 2010 -120 -106 -118 686 951 103 103 65 -1 0 1 FINANCIAL REPORT ANNUAL REPORT 2011 151 12 17 -20 733 738 537 -507 -580 -679 -818 Total Total 1,698 3,390 -1,146 -3,145 -8,028 -7,632 -8,027 -9,444 17,672 10,549 10,040 41,604 10,549 18,577 18,577 51,048 -31,792 € in thousands € in thousands 12 17 537 -20 733 738 -679 -818 -507 -580 1,698 7,616 1,122 -8,027 -9,444 7,616 5,033 31,457 15,643 40,901 -1,146 -2,951 -8,027 -7,632 -24,579 12,665 15,643 property property Buildings - investment Buildings - investment Buildings - investment
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -194 2,933 2,933 2,267 -7,214 2,933 5,006 5,007 2,933 10,147 10,147 property property Land - investment Land - investment ACCUMULATED DEPRECIATION ACCUMULATED Balance at 01/01/2011 Transfer Transfer to assets for sale Transfer Write-offs Impairments CARRYING AMOUNT Balance at 01/01/2011 Balance at 31/12/2011 Depreciation Balance at 31/12/2011 Depreciation Impairments Balance at 31/12/2010 CARRYING AMOUNT Balance at 01/01/2010 Balance at 31/12/2010 Balance at 31/12/2011 ACCUMULATED DEPRECIATION ACCUMULATED Balance at 01/01/2010 Transfer Acquisitions Transfer to assets for sale Transfer Write-offs Impairments COST VALUE Balance at 01/01/2010 Impairments Balance at 31/12/2010 Transfer COST VALUE Balance at 01/01/2011 According to our estimate, the fair value of investment property does not significantly deviate from the book values. According to our estimate, the fair value of The value of mortgages in Sava d.d. shown under 1.3.10. also includes a mortgage placed on investment property in the The value of mortgages in Sava d.d. shown under 1.3.10. also includes a mortgage amount of €1,574 thousand. 1.3.12. Investment property 1.3.12. Movement of investment property of the Sava Group in 2010 Movement of investment property Movement of investment property of the Sava Group in 2011 Group in 2011 property of the Sava of investment Movement 152 ANNUAL REPORT 2011 FINANCIAL REPORT Significant financialdataabouttheassociatedcompany GorenjskaBankad.d.,Kranj The investmentsintheassociatedcompaniesmovedasfollows: fiduciary the of ownership fiduciary the under Kranj, d.d., Banka Gorenjska of shares (7.21%) 23,924 transferred d.d. * Sava Groupcompanieshaveshareholdinginthefollowingassociatedcompanies: 1.3.13. Investmentsintheassociated The datawaspreparedonthe basis oftheunauditedfinancialstatementscompany Net profit/loss Revenues Capital Liabilities andprovisions Assets Transfers fromnon-current securitiesavailableforsale Acquisitions Initial balance Final balance Impairments Sales Paid dividends Attributable losses Attributable profit Attributable equityrevaluationadjustments Comprehensive incomeforthe financialyearaftertax Gorenjska Bankad.d.,Kranj* Abanka Vipad.d.,Ljubljana Maksima Investd.d.,Ljubljana NFD Holdingd.d.,Ljubljana Turizem Lendavad.o.o., JOB d.o.o.,Maribor Panensa d.o.o.,Srbac,BIH Total
Sava liabilities arisingfrombondsuntiltheirmaturity,of whichison09/12/2014. collateral a as d.d. Sava by issued bonds of holders of favour in them saves fiduciary The Ljubljana. d.d., Vipa Abanka companies
Stake in%31/12/2011
46.06 23.83 21.77 24.65 29.92 40.00 0.00 Stake in%31/12/2010 46.06 23.83 27.00 21.34 24.65 29.92 40.00 . Value offinancialinvestments 1,610,377 1,947,403 -114,223 319,158 199,847 134,081 337,026 31/12/2011 -11,049 11,049 -4,652 -8,421 1,680 2011 2011 199,847 -437 164,530 34,317 0 1 0 997 0 0 3 0 € inthousands € inthousands € inthousands 31/12/2010 1,613,955 1,980,801 300,428 319,158 319,158 110,483 366,846 179,757 116,849 -11,819 26,988 11,819 21,092 15,096 18,820 -2,358 -9,249 4,338 3,292 2010 2010 -989 437 0 3 0 FINANCIAL REPORT ANNUAL REPORT 2011 153 - 2010 2010 2010 3,873 2,991 1,367 -7,834 17,919 53,634 35,715 -11,355 -26,070 -23,712 357,134 237,641 312,691 194,249 118,442 107,075 4,586,218 4,229,084 € in thousands € in thousands € in thousands 136 2011 2011 2011 2,775 22,131 39,906 87,886 21,144 -39,693 -35,484 -33,076 -17,775 -31,124 231,356 245,299 109,030 -109,656 -124,495 4,258,192 4,026,836 , . 80,260 shares of Gorenjska Banka d.d . were pledged were . d.d Banka Gorenjska of shares 80,260 for the obtained loans of Sava d.d., the obtained loan of Savatech d.o.o., liabilities arising from the call op tion contract and the bonds issued by Sava d.d. The book value of pledged shares amounted to €47,194 thousand.
Gorenjska Banka Revenues Net profit/loss Comprehensive income for the financial year after tax Comprehensive income for the financial year after tax Comprehensive income for the financial Assets Liabilities and provisions Capital Assets Liabilities and provisions Capital Revenues Net profit/loss Assets Liabilities and provisions Capital Revenues Net profit/loss Comprehensive income for the financial year after tax Comprehensive income The data was prepared on the basis of the unaudited financial statements of the company The 2010 data was prepared on the basis of the unaudited consolidated financial statements of the company, whereas the 2011 the whereas company, the of statements financial consolidated unaudited the of basis the on prepared was data 2010 The financial statements of NFD Holding d.d. data was prepared on the basis of the unaudited In the consolidated financial statements of the Sava Group a 46.06% ownership stake d.d. is valued in accordance with the equity method and amounted to €164,530 thousand. In comparison with the end of the the previous ownership year, stake did not change. Other explanations in connection with the associated companies Significant financial data about the associated company Maksima Invest d.d., Ljubljana Significant financial data about the Significant financial data about the associated company NFD Holding d.d., Ljubljana Significant financial data about the Significant financial data about the associated company - Abanka Vipa d.d. Group, Ljubljana Abanka Vipa d.d. company - the associated financial data about Significant The data was prepared on the basis of the unaudited financial statements of the company on the basis of the unaudited financial The data was prepared 154 ANNUAL REPORT 2011 FINANCIAL REPORT €34,317 thousand. to amounted shares pledged of value book The d.d. Vipa d.d. were pledged for the loans obtained by Sava Abanka of shares All thousand. €27,453 to amounted share a per €16 2011of of day trading last the on price per a share. The value of investments using the market €20 reach to thousand €82,532 by impaired was ment invest of value the while unchanged, remained stake ownership the year, previous the of end the with son 31/12/2011 amounted to 34,317 thousand. In compari at update evaluation the and 30/09/2011 at evaluation Ljubljana d.d., in Vipa stake ownership 23.83% a of value The scenario. Thevaluerangeis determinedat+/-10%. pessimistic the and optimistic the in calculated value mean weighted the on based is estimate value The was applied. marketability in shortage a for discount 10% a market, the estimated value. Under assumption of a non-going to added was adequacy capital for capital in surplus The 11.49%. of rate return required the and 10%, of cy long-term growth of 2.5%, the required capital adequa equacy with a subordinated debt in the amount of 25%, sumption of capital financing for the need of capital ad- as under projections, is business pessimistic on based scenario pessimistic the in calculation value The applied. ket, a 10% discount for a shortage in marketability was mar non-going a of assumption Under value. mated esti the to added was adequacy capital for capital in surplus A 11.49%. of rate return required the and 10%, of adequacy capital required the 2.8%, of growth term with a subordinated debt in the amount of 25%, a long- adequacy capital of need the for financing capital of assumption under projections, business optimistic on The value calculation in the optimistic scenario is based tors’ Institute. Audi Slovene the from licence valid a with companies of evaluator certified a by out carried was evaluation The 2011. December 31 on updated was evaluation produced The 2011. in produced was 30/09/2010 at as d.d. Vipa Abanka of evalua stake equity the 23.8% a of on tion report a purposes, accounting For The information on estimating the value of a 23.83% equity capitalinAbankaVipad.d.at31/12/2011 cmue o te ai o the of basis the on computed , Abanka ------the annualreportofSava Group. of part financial the in presented are operations from profit/loss and capital of amount the capital, in share the Group, Sava the of companies associated the of composition the with connection in disclosures The pany JOBd.o.o.wassoldin2011. com associated smaller a in investment financial The ership stakeremainedunchanged. own the while thousand, €620 of amount total in 2010 BiH Srbac, d.o.o., Panensa company associated the in investment financial The price at31/12/2011amountedto€252thousand. investments ascertained by using the stock exchange vestment decreased by €3,292 thousand. The value of in of value the whereas 0.43%, by increased holding son with the end of the previous year, the equity share compari In 2012. in developments the of account on zero to impaired was it statements financial solidated con the in whereas thousand, €252 to amounted d.d. Sava of statements financial individual in Ljubljana, in share 21.77% a of value The €997 thousand. ing a stock exchange price at 31/12/2011 amounted to us- investment of value The prices. exchange stock in drop further a of result a as 2011 in thousand €17,832 did not change, the value of investments decreased by stake year,ownership previous the the of end the with comparison In thousand. €997 to amounted ments, state financial consolidated and individual in bljana in stake 24.65% a of value The €19.9 to€28perashare. was from range +/-10% the in given was estimate value The used. range value the determining for while calculated, was value mean weighted the scenario, tic optimis the and pessimistic the Using method. flows cash discounted the on based was estimate value the on decision final The method. CAPM the of basis the on estimated was rate discount The scenario. mistic pessi the in 11.49% of rate discount a and scenario, optimistic the in % 11.49 rate discount a with counted dis was flow cash net Free used. was flows cash ed When performing an evaluation, the metod of discount , was impaired already in already impaired was , NFD Holding d.d., Lju d.d., Holding NFD Maksima Invest d.d., Invest Maksima ------FINANCIAL REPORT ANNUAL REPORT 2011 155 - - - - 2010 2,574 31,483 33,168 67,225 € in thousands 2011 4,203 25,123 11,851 41,177 other shares and stakes amounted to The entire 23.35% share in NFD 1 d.d. was pledged for the loans obtained by Sava d.d. The book value of thousand. pledged shares amounts to €25,123 The value of €16,054 thousand, and included 837,000 shares of Hoteli Bernardin d.d, 13,500 shares of Kompas Bled d.d, 1,504 shares of NLB d.d., 4,987 shares of Poko jninska Družba A d.d., and 9,874 shares of Jubmes Banka d.d., pledged for the loans obtained by Sava to amounts shares pledged the of value book The d.d. €3,703 thousand. Forward sales and call option contracts con sales forward a included stakes and shares Other tract in the amount of €1,155 thousand. The counter party in the forward sales contract is Maksima Invest d.d., the subject of the option being 14,780 shares of Daimond d.d. The agreed transaction price amounts to €78,16 per a share. The contract was signed on 18 2012. February 18 being date maturity the 2009, March When estimating the ability of the counter party to fulfil the forward contract, we have established the pres- ence of higher risks, therefore an impairment of these shares was carried out. In 2012, the contract was ex 2012. tended until 18 May, The value of the call option €6,719 thousand. The contract counter party of the amounted call option to option the of subject the d.d., Banka Factor is contract being 26,748 shares of NLB d.d. The agreed transac tion price is €251.20 per a share. The contract signed on 26 was July 2010 and will fall due on 1 October the of basis the on ascertained value market The 2012. book value of company’s capital, which is the subject of the option, amounted to €1,425 thousand. ------
. The fair NFD 1 d.d., for sale Mutual funds Total Shares and stakes of unlisted companies Shares and stakes of Shares of listed companies
1.3.14. Long-term securities available available Long-term securities 1.3.14. of long-term securities Types At 31/12/2011, securities available for sale were val- ued at fair value. The net negative effect of revalua The value of a 23.35% ownership stake in Despite a 23.35% ownership stake the investment in NFD 1 d.d. is considered as available for sale and not an associated company. NFD 1 d.d. is managed by the funds management company, in which Sava d.d. holds no shareholding. The supervisory board of the company merely supervises the funds operation. Be At 31/12/2010, NFD 1 d.d. with its head office at Trdi ed listed securities available for sale in the amount of €4,203 thousand, unlisted securities available for sale in the amount of €11,851 thousand, and investments thousand. in a mutual fund in the amount of €25,123 tion amounted to €20,109 thousand, of which €26,429 thousand were impairments carried out in the profit or eq in increases were thousand €6,320 of net and loss, uity revaluation adjustment. Ljubljana amounted to €25,123 thousand value was ascertained by using the stock exchange in impairments of value total The 31/12/2011. at price cluded in the income statement amounted to €9,404 thousand. sides, NFD 1 restructured from a closed investment fund to an open mutual fund in 2011, at fund which mutual of share Sava certain a of holder a become d.d. coupons and has no influence whatsoever on its man agement. €102,719 thou of capital had Ljubljana, 1000 4, nova to amounted 2011 of loss net the while available, sand €21,601 thousand. The value of other stakes and shares totalled €41,177 thousand and in comparison with the previous year it was lower by 39%. Other shares and stakes includ 156 ANNUAL REPORT 2011 FINANCIAL REPORT ments (in 2011: €2,579 thousand and in the previous the in and thousand €2,579 invest 2011: (in ments financial of write-offs and impairments from expenses financial under included was and thousand €5,294 totalled value market the and contract option call the to according value the between difference The ment with regard to a change in a 12-month EURIBOR. adjust annual to subject is rate interest contract The 4.349%. half second the in and 3.462%, to amounted year 2011 of half first the in rate interest contract The years. 15 of period a for d.o.o., IP Sava by concluded nished offices for the needs of government bodies was unfur of lease financial the about contract The ments. der Assets available for sale in the 2011 financial state un transferred were thousand €611 of amount the in the and thousand, lease financial from receivable short-term €4,556 a of amount of amount the in financial lease from receivables long-term of amount the Owing to the intended sale of a stake in Sava IP d.o.o., 1.3.15. Long-termloans Movement oflong-termsecurities Total Other Granted long-termloans Receivables duetofinancialleasing Acquisitions Balance at01/01 Transfer fromlong-termloans Transfer toasscoiatedcompanies Balance at31/12 Impairment Disposals Change tofairvalue Transfer toassetsforsale - - - - - o cmlig ih h cnrc. h bo vle of value pledged sharesamountedto€3,558thousand. book The contract. the with complying for collateral as d.d. Banka Gorenjska of shares received 6,050 counter-party The thousand). €2,715 year receivable duefromabuyer ofproducts. borrower’s mortgage on the property and an operating purchase of flats. These loans are insured by placing a the for employees to approved loans the to referred Other long-term loans €4,221 thousand. was principle the of value fair the thousand; €5,410 to amounted applied, was rate discount 3.141% a where The discounted lowest amount of rent for financial lease sand. thou €787 totalled rate interest effective an at culated cal lease finance from arising revenue financial future od last year they totalled €168 thousand. The expected amounted to €164 thousand whereas in the same peri- lease financial from arising revenues financial 2011, In in the amount of €377 thousand -26,429 67,225 41,177 -9,590 -6,320 1,992 1,674 2011 2011 384 377 -15 7 0 0 € inthousands € inthousands 152,789 -26,988 -41,582 -53,108 67,225 25,045 19,411 -8,342 5,675 5,039 2010 2010 525 111 0 - - FINANCIAL REPORT ANNUAL REPORT 2011 157 52 14 11 -39 -96 -19 389 462 -135 -858 2011 2010 5,867 2,218 5,675 2,243 -2,320 -2,082 -1,073 -6,316 -6,105 41,249 -15,550 -19,961 € in thousands € in thousands € in thousands More than 5 years -7 44 2010 -96 384 97 -169 2011 514 5,675 -5,063 2,821 3,432 From 1 to 5 years From 0 0 0 0 and liabilities for sale. The remaining assets of Sava IP d.o.o. will be separated on the which company, will Sava Group. remain to form a constituent part of the More than 5 years - 7 0 2011 377 384 From 1 to 5 years From Net profit for the financial year Sales revenues from services and goods Costs of goods, materials and services Financial and other revenues Financial expenses Tax Changes in the value of inventories Other revenues Labour costs Depreciation and write-offs Other operating expenses Balance at 01/01 Final balance Newly formed provisions Impairment Decrease Transfer Repayment Other Granted long-term loans Total Receivables due to financial leasing Receivables due to financial Income statement of Sava IP d.o.o. for 2011 Income statement of Sava IP d.o.o. In connection with the planned sale of the ownership stake in Sava IP d.o.o. a part of the assets and liabili 1.3.16. Assets available for sale 1.3.16. Assets available for sale ties planned to be sold, was transferred under assets Movement of long-term loans Movement of long-term Analysis of maturity of long-term loans of maturity of long-term Analysis 158 ANNUAL REPORT 2011 FINANCIAL REPORT Statement offinancialpositionSavad.d.at31/12/2011–assetsandliabilitiesforsale ments amounted to €8,800 thousand. The amount of amount The thousand. €8,800 to amounted ments agree loan from liabilities for guarantee ap a as d.o.o. proved IP Sava in inventories of value book The inventories amountedto€2,312thousand. in allowance the 2010, In thousand. €2,839 of amount the in Zagreb d.o.o, Nova Sava thousand, €6,123 of amount the in d.o.o. IP Sava in which of thousand, €9,308 of amount the in inventories formed in allowance Group an Sava the of companies the 2011, In 1.3.17. Inventories Property, plantandequipment Investment property Intangible assets Long-term loansandreceivables Obtained long-termloans Provisions Capital Assets Cash andcashequivalents Granted loans Operating andotherreceivables Inventories Capital andliabilities Current provisions Current operatingliabilities Obtained short-term loans Long-term operatingliabilities Materials Work andprojectsinprogress Unfinished constructionprojects Merchandise Finished goods Total Finished constructionprojects Gross value 31/12/2011 38,655 19,938 6,849 2,758 4,220 4,741 31/12/2011 150 37,257 37,257 19,340 24,782 10,399 1,782 2,413 4,829 6,752 2,171 - - 109 266 597 574 148 320 32 mortgage on inventories, amounted to €700 thousand. a with insured was 2011 in which loan, outstanding of inventories amounted to €1,048 thousand. The balance these of amount carrying The inventories. on placed is mortgage a Zagreb d.o.o., Nova Sava company the In ing loanat31/12/2011insuredwithinventories. outstand of balance the represented which thousand, €9,629 to amounted inventories on mortgages placed Write-offs in Excluded inconsolidation -9,308 -8,812 2011 -293 -150 -27 -26 0 -19,359 -19,340 -4,909 -3,320 -1,544 31/12/2011 -18 -27 -11 Net value -8 0 0 0 0 0 0 0 0 29,347 11,126 6,556 4,193 4,715 2,758 0 Transfer underassets and liabilitiesforsale € inthousands € inthousands 31/12/2010 Net value 32,348 17,898 58,834 21,462 10,391 36,462 1,782 2,413 4,811 6,752 6,378 3,421 3,226 5,695 3,652 109 266 597 547 627 148 309 32 0 -
FINANCIAL REPORT ANNUAL REPORT 2011 159
- - - 584 945 440 188 2010 2010 2010 1,949 2,404 8,293 8,293 24,374 19,457 24,958 25,383 € in thousands € in thousands € in thousands 3 783 900 106 2011 2011 2011 1,500 2,572 20,221 10,649 20,906 20,224 26,768 10,649 decreased by €8,687 thousand, of thou €6,687 of sum which a and repayment, loan was a €2,000 sum of ba the on computed loan, the of impairment was sand sis of evaluating the suitability of received collaterals for both loans. The Assignment of Claims, on the basis of which the prevailing part of the receivable due from NFD Hold ing d.d. was shown, was in liabilities covered with the granted loan from NLB d.d., and secured with bills of rate interest The d.d. Turizem of shares and exchange for current loans amounts to 6.12% and 7.3%. €4,534 of amount the in loans granted short-term Other thousand were deposits to banks, the being from 0.8 to 1.4%. interest rate
- NFD Holding balance of the loan to NFD Holding d.d. was Originated loans Current portion of non-current loans Total Other receivables Total Cash on hand and transaction accounts Total Trade receivables Trade not charged Receivables temporary associates Receivables due from Advances paid and other taxes Receivables for VAT 1.3.21. Cash and cash equivalents A current loan in total amount of €15,687 entirely referred to the thousand loans granted to d.d., which are both secured with bills of exchange and securities, which include 9,154,192 Hoteli shares Bernardin of d.d., 346,243 shares of NFD 1 d.d., 647,318 shares of Istrabenz d.d., 166,484 shares of Melamin d.d., 56,839 shares of Finetol d.d., 536,926 shares 32,936 and d.d., Mlekarne Ljubljanske of shares of Sava d.d. With all the mentioned shares except for shares of Ljubljanske Mlekarne d.d. Sava d.d. is part ly entered as the first-entered lien holder, and partly value estimated The holder. lien second-entered the as of securities on pledge amounts to €16,074 thousand. In comparison with the end the of the previous year, 1.3.18. Current operating and other receivables Current operating 1.3.18. The agreed overdraft credit on transaction accounts amounted to €1,260 thousand, which is the same as at the end of the previous At year. 31/12/2011, the overdraft limit was entirely utilised, the liabilities from the negative balance on transaction account were shown under current financial liabilities. 1.3.20. Current loans Current financial investments totalling €128 thousand (in 2010: €115 thousand) entirely referred to the value of interest rate swaps. 1.3.19. Current financial investments In 2011, the companies of the Sava Group formed an adjustment in trade receivables totalling €734 thousand. In thousand. €734 totalling receivables trade in adjustment an formed Group Sava the of companies the 2011, In amounted to €1,493 thousand. 2010, the adjustment in trade receivables 160 ANNUAL REPORT 2011 FINANCIAL REPORT Fair valuereserve Fair h sae rmu i te mut f 1568 huad a etrl ue fr oeig h 21 ls of loss 2011 the covering for used entirely was thousand Sava d.d. €125,608 of amount the in premium share The accordance in dividend a to entitled are shareholders The shares. value no-par personal ordinary into 2,006,987 divided is It €83,751,567.51. to amounted and year previous the with comparison in in change not paid did totally was that capital share approved The Share capital 1.3.22. Equityandreserves Treasury shares were thousand entirely usedforcoveringthe2011lossofSavad.d. €7,532 totalling reserves revenue other and thousand €7,182 of amount the in reserves Legal Reserves Share premiumpaid-in Sava d.d.receivedinpledge another32,936sharesofSava,whichmakes1.64% oftotallyissuedshares. number oftreasurysharesamounted to30,541,or1.52%oftotallyissuedshares. the thousand, €4,977 to amounted capital, total decreased 31/12/2011 at which shares, treasury of value The Fair valuereserves From derivativefinancialinstruments–interestrateswaps From investmentsinassociated companies From securitiesavailablefor sale Capital reserves Share capitalrevaluation Additional capitalpaid-in Share premiumpaidfromcapital Value oftreasuryshares(€inthousands) Number oftreasuryshares Reserves fortreasuryshares Legal reserves % oftreasuryshareswithregard tototalissuedshares Reserves Other revenuereserves statement inchangesofequity. the from clear is equity of movement and balance The structure. scribed in the chapter - The Sava share and ownership de are changes its and structure ownership The ing. with the resolution adopted by the Shareholders’ Meet 31/12/2011 31/12/2011 31/12/2011 31/12/2011 30,541 -5,604 4,847 4,977 4,977 4,977 -195 1.52 758 0 0 0 0 0 0 € inthousands € inthousands € inthousands € inthousands 31/12/2010 31/12/2010 31/12/2010 31/12/2010 125,608 19,691 50,821 53,305 21,482 30,541 -4,448 -2,939 7,182 4,977 4,977 7,532 -960 -549 1.52 - -
FINANCIAL REPORT ANNUAL REPORT 2011 161 0 0 3.20 6,412 6,530 -6,412 -50.04 42,668 -30,541 -99,899 -99,848 -99,848 158,694 101,632 2,006,987 1,995,423 1,995,423 31/12/2010 31/12/2010 31/12/2010 31/12/2010 € in thousands 0 0 0 0.0 7,182 7,532 -78.69 84,940 -30,541 125,608 101,632 -157,160 -157,013 -157,013 2,006,987 1,995,423 1,995,423 31/12/2011 31/12/2011 31/12/2011 31/12/2011 Covering the loss of Sava d.d. from paid in share premium Covering the loss of Sava d.d. from paid Retained net earnings Covering the loss of Sava d.d. from legal reserves Covering the loss of Sava d.d. from legal Total number of shares Total Less treasury shares average number of shares Weighted Net profit/loss for the year (€ in thousands) Net profit /loss for the year attributable to the owners of the parent company average number of ordinary shares Weighted Basic net earnings/loss per share (€) Dividend per ordinary share in the year (€) Dividend per ordinary share in the year (€) thousands) in (€ earnings retained of debit the to dividends paid of amount Total Retained earnings from previous years Retained earnings from of Sava d.d. Less paid dividends revenue reserves Covering the loss of Sava d.d. from other Transfer from other revenue reserves acc. to the Management Board resolution reserves acc. to the Management Board from other revenue Transfer Net profit / loss for the financial year Share capital is divided into 2,006,987 ordinary personal no-par value shares that all have voting rights and are freely transferrable. All shares are wholly paid in. The company has no bonds shares. available to be converted into Net earnings per share The diluted net loss per a share equalled the basic net loss per a share, since capital is composed of ordinary shares. Net loss attributable to ordinary shares Weighted average number of ordinary shares Dividends Retained net earnings The translation reserve in the amount of €236 thousand (in 2010: €222 thousand) comprised total foreign currency foreign total comprised thousand) €222 2010: (in thousand €236 of amount the in reserve translation The gains/losses arising from the translation of individual items in the financial statements of foreign operations from to the reporting currency. their local currencies Translation reserve Translation 162 ANNUAL REPORT 2011 FINANCIAL REPORT rft o te usdais r cluae indirectly, calculated through theownershipbyparentcompany. are subsidiaries the for and profit capital attributable interest, minority share The Minority interest,totalcapital,andprofit/loss mined in the individual financial statements compiled statements financial individual the in mined deter as profit accumulated the distribute may pany com- parent a that regulates legislation The islation. leg Slovene with accordance in determined amount the within possible only is profit of appropriation The Minority interestbelongstothefollowingcompanies: made on 31/12/2011 under the following assumptions: in the amount as determined by the actuary calculation benefits jubilee employee and amounts retirement for liabilities include employees to liabilities accrued The 1.3.23. Provisions Total Energetika Črnomeljd.o.o.,Kranj (Sava HoteliBled,d.d.,Bled) Sava Turizem d.d. Savatrade Inc., Port Orange, Florida Savarus d.o.o.,Jaroslavl,Russia Savapro d.o.o.,Kranj Sava ROL,d.o.o., Zagreb Sava ROL,d.o.o., Total Others Warranties Provisions forlawsuitsandotherclaims Provisions forliabilitiestoemployees Non-distributable reserve Accumulated lossofthecompanySavad.d.forfinancialyearaccordingtoSAS adopted bytheEU Retained netprofitforthefinancialyearSavaGroupaccordingtoIFRSas 31/12/2011 49.32% 40.30% 40.00% 24.00% 0.95% 5.00% Non-controlling 31/12/2010 01/01/2011 Balance at interest 49.32% 40.30% 40.00% 24.00% 3.18% 5.00% - - 6,899 1,303 5,073 391 132 by €27thousandduetothestatuschangeinTourism. decreased and rate, exchange Euro/Rouble changed the to due thousand €17 by increased thousand, €147 of amount the in losses attributable the to due partly In 2010, minority interest decreased by €157 thousand cumulated profitamountedto€6,530thousand. thousand, while on the last day of the previous year €9,274 ac- to amounted loss uncovered the 31/12/2011 At Standards. Accounting Slovene with accordance in n ae, eieet mut ad uie benefits, jubilee and amounts retirement wages, in growth annual 3.5% a contracts, work individual and collective the from provisions the with accordance in benefits jubilee for provisions and amounts retirement
31/12/2011 non-controlling interest Formation Capital belongingto 1,716 1,325 -845 1,108 305 874 21 36 557 339 162 50 31/12/2010 Reversal 1,873 1,304 -726 -580 -112 -389 303 936 -79 18 38 31/12/2011 0
31/12/2011 84,940 84,940 -9,274 non-controlling interest Used -147 -811 -137 -220 -540 Profit belongingto -36 -22 -30 21 2 3 0 € inthousands € inthousands € inthousands 31/12/2010 31/12/2011 31/12/2010 Balance at 101,632 95,102 6,615 1,561 4,761 6,530 264 -51 -42 -79 66 30 1 3 0
FINANCIAL REPORT ANNUAL REPORT 2011 163 - 0 228 724 335 2010 1,087 7,629 1,819 44,215 26,515 10,424 12,243 122,761 178,520 169,015 382,014 166,976 212,999 178,855 Balance at 31/12/2011 € in thousands € in thousands 0 -313 -313 Used 713 329 2011 6,283 4,951 5,000 9,465 26,192 26,515 62,501 26,521 116,126 175,735 308,809 371,310 296,861 -739 -261 -1,000 Reversal 528 227 755 Decrease Provisions Provisions for law suits and other claims are formed of outcome the estimated who lawyers consulting after filed and other claims. law suits The grants that the companies of division the Tourism obtained from the structural funds were utilised for the renovation of tourist facilities such as the building of a 5* hotel in Moravske renovation Toplice, of Hotel Ra Lendava, in apartments of construction Radenci, in din building of the 4* Grand Hotel Primus, Terapija hotel the of a renewal a and Ptuj in complex swimming pool in Radenci. formation about the company’s exposure to interest and exchange rate risk is contained in Item 1.3.38. – Financial instruments. 2,030 10,771 12,801 - - -
- Balance at 01/01/2011 liabilities Total current interest-bearing borrowings current interest-bearing Total borrowings and other financial liabilities Total Current borrowings from banks total Current borrowings of others Liabilities for dividend payments Liabilities for interest rate swaps Current borrowings from domestic banks Current borrowings from foreign banks Total long-term borrowings Total CURRENT FINANCIAL LIABILITIES Current portion in long-term borrowings from banks Funding by EU and other funds other and EU by Funding Total Provisions from release in contribution payment Provisions from release LONG-TERM BORROWINGS LONG-TERM Borrowings from domestic banks Borrowings from foreign banks Borrowings from banks total Long-term liabilities originating from bonds Borrowings from others
1.3.24. Government grants 1.3.24. Government The explanation below provides information as to the terms and conditions for the obtained loans. More in 1.3.25. Obtained loans and other financial 1.3.25. Obtained loans and other Provisions due to relief in payment of social security contributions were formed in accordance with the Law on Employment Rehabilitation and Disabled Persons Act. They are used for covering various expenses as set out in the mentioned in law, particular to cover de preciation in plant, property and equipment in the dis ablement company and for covering labour costs and retirement amounts. employee employee fluctuation, while the chosen discount inter est rate amounts to 4.80 % annually and represents a yield of 10-year loan stock with a high rating in the Euro Zone. 164 ANNUAL REPORT 2011 FINANCIAL REPORT Terms andconditionsforborrowings • • bonds: of issue the with connection in explanations Additional were paid in on account of the thousand submitted binding bids. €15 another 2009, in procedure issuance the during thousand; €26,500 to amounted issuance to amounted €26,515 thousand. The total nominal value of the bond bonds on based liabilities Long-term Long-term liabilitiesbasedonbonds Note: IRBRS-InvestmentDevelopment BankoftheRepublicSerbia-tiedtoa6MEUROB borrowings Long-term associate Borrowings from domestic bank Borrowings from foreign bank Borrowings from others Borrowings from borrowings Current associate Borrowings from domestic bank Borrowings from foreign bank Borrowings from Borrowings fromothers
listing: in the bonds market of the Ljubljana the of market bonds the in listing: euro, in nominated bond ordinary bond: of ype Stock ExchangeunderthedesignationSA02. in thecentralregistryatKDDd.d.Ljubljana. entered form non-materialised in issued nominal, Bonds T
in % Interest rate 6M EURIBOR +0.75to0.85 6M EURIBOR +0.60to4.90 3M EURIBOR from 5.60to6.00 +1.00 12M EURIBOR +3.25to4.5 6M EURIBOR +1.25to4.90 3M EURIBOR IRB RS+3.10ormin5.10 from 5.60to7.20 EBRD +1.00 +0.35to0.50 3M EURIBOR TOM +1.60to2.50 in % Interest rate from 5.20to5.80 from 5.50to6.30 +3.85 6M EURIBOR +4.55 3M EURIBOR +4.20to4.70 1M EURIBOR 3M EURIBOR +3.75 3M EURIBOR from 1.25to2.50
of lastinstalment Maturity 2012 -2016 2012 -2020 2015 2012 -2025 of lastinstalment Maturity 2012 2011 -2012 2012 2012 • • • •
nomi date: maturity and principal fixed; the is and of p.a. ayment % 7.20 to amounts rate:
pledged sharesamountedto€14,068thousand. the of value book The d.d. Banka Gorenjska of shares 23,924 with secured are bonds Collateral: interests fall due for payment six months in arrears. denominations at€1,000.00each. P Interest Denomination gle amountuponmaturityofbondsat09/12/2014 sin a in due entirely falls principal the of value nal
structure: total issue includes 26,500 of collateral Type of abusinessshare pledge ofsecurities, letter ofcomfort,mortgage, bills ofexchange, pledge ofsecurities cession offuturereceivables, of liabilitiesandreceivables, comfort, mortgage,compensation bills ofexchange,surety, letterof corporate guarantee bills ofexchange,paymentorder, of abusinessshare pledge ofsecurities, mortgage, bankguarantee, bills ofexchange,surety, of collateral Type pledge ofabusinessshare pledge ofsecurities, bills ofexchange,surety, pledge ofabusinessshare pledge ofsecurities, letter ofcomfort,mortgage, bills ofexchange,surety, pledge ofsecurities bills ofexchange,surety, - OR
- - FINANCIAL REPORT ANNUAL REPORT 2011 165 - 10 69 Total 2010 2010 1,036 5,501 10,499 52,248 62,501 11,615 303,143 155,251 212,999 365,644 € in thousands € in thousands € in thousands 36 843 136 2011 2011 2,763 23,682 20,857 38,881 27,656 24,697 62,501 188,873 216,529 Variable interest rate Variable A comprehensive explanation of the pledge of shares owned property real on mortgages the and stakes and by Sava d.d. is given under item 2.5.2. d.d. statements of the parent company Sava of financial €12,000 thousand in Sava d.d., and €3,694 thousand d.d. in Sava Turizem nancial liabilities from the unpaid dividends to share- holders of Sava d.d. and Sava Turizem d.d. totalling €713 thousand, and current financial liabilities from in terest rate swaps totalling €4,951 thousand. 34,845 connection with the revaluation of securities available for sale at fair value. 114,270 149,115 - - - Fixed interest rate Liabilities of foreign subsidiaries – revaluation of securities to fair value Receivables - provisions according to actuary calculation, disputes Receivables - profit retained in inventories Receivables - subsidiaries abroad Total Total More than 5 years Current borrowing Total Between 1 and 2 years Between 2 and 5 years Long-term borrowing Deferred tax receivables or liabilities referred to the following items: Classification of borrowings in respect of a fixed and variable interest rate in respect of a fixed and Classification of borrowings Maturity of non-current borrowings Maturity Loan collateral Net deferred tax receivables were formed in the amount the in formed were receivables tax deferred Net they thousand); €11,615 2010: (in thousand €24,697 of mainly appeared in the parent company Sava d.d. in 1.3.26. Deferred tax receivables or liabilities At 31/12/2011, Sava Group companies had unregulat Unregulated loans An explanation as to the collateral for loans of the Sava the of loans for collateral the to as explanation An provided is estate real on mortgages placing by Group under 1.3.10. The loans obtained by Sava d.d. are insured with mort with insured are d.d. Sava by obtained loans The gages on real property of Group’s companies by Sava d.d. pledging the shares and stakes owned and ed loans in the amount of €15,694 thousand, of which Total current Total financial liabilities amounted to €308,809 thousand (2010: €169.015 thousand). The difference to the amount of current borrowings in the amount of €5,666 thousand (in 2010: €1,811 thousand) were fi 166 ANNUAL REPORT 2011 FINANCIAL REPORT 1.3.29. Salesrevenues holidays and hours working unutilised amounts, ment sand) mainly referred to short-term provisions for retire thou- €1,862 2010: (in thousand €6,266 amount The 1.3.28. Currentprovisions 1.3.27. Currentoperatingliabilities in financial of impairments for receivables deferred to addition in that generated be will revenues foreseeable no a future in that estimated is it as for, counted ac- not were losses tax from receivables tax Deferred Deferred taxreceivablesorliabilitiesmovedasfollows: Interest liabilitiesfromtheobtainedloanswereincludedunderotheroperatingliabilities. Rental income Net revenuesfromconstructioncontracts Revenues fromgoodssold Current provisions VAT andothertaxes Liabilities forreceivedadvances Trade payables Change inreceivablesforprovisionsretirementamounts Change indeferredtaxliability-throughtheincomestatement Balance at01/01 Change inliabilityduetorevaluationofsecuritiesfairvalue Change indeferredtaxliability-throughothercomprehensiveincome Change inreceivablesduetoimpairmentsofsecuritiesand TOTAL Revenues frommerchandisesold Revenues fromotherservices rendered Employee payables Other changesinliabilities Balance at31/12 Transfer Other operatingliabilities Total - - amount of€1,235thousand. the in loans on interest deferred and d.d., Sava of tion reorganisa the with connection in costs accrued the and thousand, €4,397 totalling Tourismdivision the in at 31/12/2011. thousand €20,908 to amounted losses tax from ables receiv- tax deferred for non-accounted the of amount The losses. tax deferred the cover could vestments 193,783 31,105 96,367 14,573 29,316 64,085 4,015 6,266 3,005 3,855 9,079
2011 2011 2011 592 13,502 11,615 13,597 24,697 2011 0 -269 -151 -269 -269 -95 € inthousands € inthousands € inthousands € inthousands 176,730 33,828 84,437 18,879 25,477 61,573 11,615 6,549 4,383 1,543 6,606 5,220 1,862 3,004 4,383 4,383 4,023 6,379 2010 2010 2010 2010 683 -57 24 0 - FINANCIAL REPORT ANNUAL REPORT 2011 167 0 0 0 64 13 61 46 17 204 943 365 126 142 2010 2010 2010 2010 7,264 6,718 2,128 2,312 2,548 3,872 38,211 32,826 35,356 52,193 109,412 177,594 € in thousands € in thousands € in thousands € in thousands 1 3 0 8 92 93 784 188 580 412 459 408 2011 2011 2011 2011 9,168 6,861 1,000 9,308 2,398 4,942 41,015 37,278 38,510 57,044 10,792 127,959 203,747 employee jubilee benefits as additionally accounted for accounted additionally as benefits jubilee employee on the basis the actuary calculation. 2,290 employees were employed in 2011 on average, while in 2010 the employee number totalled 2,327. TOTAL Other labour costs TOTAL Receivables TOTAL Social security expenses Wages and salaries and Wages plant and equipment Impairment of property, plant and equipment Write-offs of property, Property, plant and equipment - loss from sale Property, Intangible assets - write-offs Reversal of provisions not used Reversal of provisions grants Income from government incentives Income from government of companies Proceeds from sale of investment property Proceeds from sale Manufacturing costs of products sold Selling costs Overheads TOTAL Write-offs of investment property Inventories Net proceeds from sale of property, plant and equipment of property, Net proceeds from sale Other Investment property - impairments 1.3.33. Write-offs and impairments 1.3.32. Labour costs 1.3.31. Costs by functional group Other operating revenues mainly referred to the reversal of other provisions that had been formed in the the in formed been had that provisions other of reversal the to referred mainly revenues operating Other past. 1.3.30. Other operating revenues Other operating 1.3.30. Other labour costs include paid employee holiday al- lowance, other compensations in accordance with the collective agreement (meals and commuting to and from work), and provisions for retirement amounts and 168 ANNUAL REPORT 2011 FINANCIAL REPORT Other dataaboutcosts ac compensationsfor land, urban of use the for tions contribu to referred mainly expenses operating Other 1.3.34. Otheroperatingexpenses in inventories amounted to €2,312 thousand. amount€346thousand.ofvalue 2010,adjustment aIn €2,839thousand, and in other of Group companies in the amount the in Zagreb d.o.o., Nova Sava in sand, thou €6,123 of amount the in d.o.o. IP Sava in which inventoriesoftotallingvalue thousand,€9,308theof in adjustments formed companies Group Sava 2011, In sand. basic activity, was impaired in the amount of €408 its thou- for capacity the expanding for earmarked is which d.o.o., Savatech of property investment the 2011, In Overview ofcarryingamountsimpairedinvestmentpropertyin2010 Overview ofcarryingamountsimpairedinvestmentpropertyin2011 - revenuenon-generating - rent-generating Direct operatingexpensesforinvestmentproperty Research anddevelopmentcosts Forming long-termprovisions Type assets Type ofassets Other operatingexpenses Total Investment property Total Investment property TOTAL Carrying amountbefore Carrying amountbefore impairment impairment - - - 142 408 142 408 receivables were shown under financial expenses. ablesfromotherduepartners. 2010, impairmentsIn of receiv of impairments were thousand €50 and sand thou €734 of amount the in receivablestrade in ment In 2011, Sava Group companies formed a value adjust investment property, or by a real property evaluator. oversupervision forresponsible persons by given tion evalua the on based out carriedimpairmentswere All quiring of operating permits and water supply fees. Impairment Impairment -142 -408 -142 -408 3,742 4,019 1,108 2,911 2011 2011 814 809 5 Carrying amountat Carrying amountat € inthousands € inthousands € inthousands € inthousands 31/12/2010 31/12/2011 3,628 3,948 2,165 1,784 2010 2010 866 859 7 0 0 0 0 - - - - FINANCIAL REPORT ANNUAL REPORT 2011 169 - 0 54 -47 868 504 154 105 -214 2010 2010 3,137 4,768 1,081 2,570 -1,012 -1,492 -6,115 -3,134 10,684 -16,255 -55,823 -18,276 -21,360 -114,479 -109,711 € in thousands € in thousands 0 0 0 0 0 0 0 54 196 155 309 2011 2011 2,597 2,196 5,144 -1,591 -1,609 -4,963 10,686 11,049 -29,013 -22,446 -59,623 -54,479 the the impairments in connection with the liability under contract. option call the Other financial expenses totalling €4,963 mainly to referred from rate liabilities interest swaps. In thousand un shown were value receivables of impairments 2011, der Write-offs. Write-offs. der
companies Foreign exchange gains Foreign Foreign exchange losses exchange Foreign Net gain on disposal of equity securities Net gain on disposal and shares in profit Revenues from dividends Interest revenues Others financing revenues Total Impairment of approved loans Net loss on disposal of financial investments entities Impairment of receivables due from other Impairment of financial investments available for sale Impairment of financial Impairment of trade receivables Write-off of a financial receivable Interest expenses Others Financing expenses Net revenues/ expenses Abanka Vipa d.d. NFD Holding d.d. Maksima Invest d.d. Other associated companies associated companies Total Gorenjska Banka d.d. Income from stakes in profit of associated companies in the amount of €11,049 thousand mainly referred to the income from dividends. 1.3.36. Net income / costs of associated Impairments Impairments of financial investment available for sale shown in the amount of €29,013 thousand, referred in the amount of €26,434 thousand to a drop in the fair value of listed and unlisted securities and the mutual fund NFD 1, and in the amount of €2,579 thousand to 1.3.35. Net financial revenues / expenses Net financial revenues 1.3.35. Income from stakes in profit/ loss of associated companies 170 ANNUAL REPORT 2011 FINANCIAL REPORT Comparison betweentheactualandcomputedtaxrate Corporate taxrecognisedintheincomestatement ent company Sava d.d., while management teams of teams management while d.d., Sava company ent par the via out carried systematically is management form interest rate policy within the Group. Financial risk uni- a and banks with companies all of apppearance At the Group level, we have determined a standardised Financial risks 1.3.38. Financialinstruments referred toimpairmentsof: thousand €120,507 of amount the in companies ated investments financial of Impairments interest inJOBd.o.o. the of sale the in made loss the to referred thousand profit in Share • 1.3.37. Corporatetax Effective taxrate Effect bycompaniesoperatingwithaloss Tax benefitsnotrecognisedintheincomestatement method resultingfrompastchangesintheaccountingpolicies Changed taxbaseduetotransitionanewaccounting Tax freerevenues Tax non-deductibleexpenses Income taxbyapplyingtheofficialrate Total - recentlyarisenandwithdrawntemporarydifferences DEFERRED TAX Total - forthecurrentyear Assessed taxinthecurrentyear Tax rateeffectinforeignoperations Pre-tax profitinaccordancewithIFRSs Tax tothedebitofincomestatement
nancial investments in Gorenjska Banka d.d. in the amount of €10,575 thousand; fi of the associate in the amount of €108 of amount the in associate the of n h associ the in - - management. effective most assure to order in employees of circle broader a involves companies individual in agement dling and elimination of risks. The process of risk man individual companies are responsible for a proper han • • • •
totalling d.d. Vipa Abanka in investments
ling €4,124thousand. total- d.d. Invest Maksima in investment Financial thousand. €16,589 thousand. €82,532 thousand. Approved Financial Financial -10.0% 20.0% -5.2% -0.2% 7.5% 0.2% 0.0% 2.7% Rate investment in NFD Holding d.d. totalling d.d. Holding NFD in investment loan to NFD Holding d.d. totalling €6,687 -157,943 -11,907 -31,589 15,839 -4,302 8,197 2011 -299 278 -30 13,502 11,907 13,502 -1,595 -1,595 2011 -3579.1% 2491.8% -129.8% 672.1% 21.0% -2.0% -7.6% 5.0% Rate € inthousands € inthousands -103,673 -20,735 10,590 -5,223 -1,328 -2,038 -1,328 6,550 5,223 6,896 6,550 2010 2010 -322 462 -77 - - FINANCIAL REPORT ANNUAL REPORT 2011 171 - - - -
0 0 0 0 -969 -358 Other 1,035 -1,646 14,778 14,778 13,809 currencies 0 0 0 0 0 0 0 € in thousands CHF -674 -573 -674 -101 0 0 0 0 0 613 850 USD -237 2,083 2,083 2,696 € 31/12/2010 -8,480 73,361 17,572 -31,449 -26,515 -91,546 185,219 -111,858 -394,345 -253,927 -320,984 -8,581 90,222 19,457 -33,904 -26,515 -91,545 202,080 -111,858 -395,374 -254,285 -305,152 Total in € Total
0 0 0 -6 -835 -487 Other 1,057 -1,399 10,960 10,960 10,125 currencies 3.7% of loan indebtedness in the Sava Group is pro tected by using this type of hedging. At the end of 2011, Sava d.d. had one financial instru ment concluded to hedge against interest rate risk. Its total nominal value amounted to €14.0 million at the The fair end value of of the interest year. rate risk as a difference between receivables and liabilities is nega- thou €4,823 of amount the in year the of end the at tive sand, and in the consolidated financial statements of the Sava Group it is included in the income statement. foreign currencies such as Croatian, Kuna, Serbian Di Serbian Kuna, Croatian, as such currencies foreign nar and hedge Macedonian against To Denar. foreign currency risks we did not use any derivative financial instruments in 2011 as due to the large interest rate differences between the interest rate for the above- mentioned currencies, and the interest rate for Euro, there were no suitable hedge instruments available in the market. 0 0 0 0 0 0 0 0 0 0 0 - - - - - CHF 0 0 0 0 0 835 USD -301 2,624 2,624 1,136 3,459 € 31/12/2011 71,414 18,713 -16,455 -29,446 -26,515 -92,045 192,362 -120,948 -376,598 -230,850 -305,184
in € Total Total 84,998 20,906 -16,461 -31,147 -26,515 -92,045 205,946 -120,948 -376,599 -231,337 -291,601
Gross exposure Purchases for planned the next year Sales planned for the next year Gross exposure of balance sheet Other received loans Trade payables and Trade other liabilities Bonds Loans from associates Insured bank loans Trade receivables Trade Net exposure Foreign risk currency The Sava Group mostly conducts its business in the Euro zone, but a minor part of its business is carried out in other international currencies too (British Pound The Yuan. Chinese Dollar, America Zlot, Polish Sterling, structure of inflows and outflows by individual curren cy is almost levelled, foreign currency risk in the Sava Group is, therefore, low. The parent - company Yugo former the Sava of markets the in investments has d.d. slavia, which is why it is exposed to the fluctuations of It has an important effect on operations since the ma Interest rate risk jority of loans with banks are hired at a variable erence interest ref rate EURIBOR. The Sava Group man ages the interest rate risk centrally and makes use of risks. of types these managing for mechanisms various We have determined a standardised appearance for all companies with banks and a uniform interest rate policy within the Group, at which the parent company Sava d.d. is the main coordinator of these elimi to activities. used are instruments financial derived Suitable nate risks in connection with interest rate fluctuations. 172 ANNUAL REPORT 2011 FINANCIAL REPORT banks. lending the with relations its arranging and liabilities quidity of all companies, regular settlement of financial li- suitable assuring to attention its of much devoted ent company and subsidiaries. In this year, Sava Group par the of level the at mechanisms various of way by managed is under risk Liquidity conditions. favourable financing most companies Group Sava all enable and companies subsidised and parent the of liquidity suitable a assure to is organisation such of goal The policy. financial standardised a established have and centrally risk solvency manage we Group, Sava the In Solvency risk Interest rateriskmanagementbyusinginterestswaps Total risk hedginginstruments Interest rateswapsusedas ties Derivative financialliabili Other financialliabilities Bonds companies Loans fromassociated liabilities Trade payablesandother 31/12/2011 Liabilities 31/12/2010 Total Liabilities 31/12/2011 (excluding associates) Insured bankloans liabilities Non derivativefinancial Total Assets Interest rateswaps Assets Interest rateswaps
- Carrying Carrying amount amount -4,823 -1,087 -4,951 Carrying 402,456 397,505 231,337 amount -972 16,461 26,515 92,045 31,147 115 128 4,951 4,951 Contracted Contracted cash flows cash flows Contracted cash flows -417,969 -413,018 -237,605 -1.202 -5,079 -1,087 -4,951 -17,190 -32,109 -94,967 -31,147 -4,951 -4,951 -115 -128 - 6 monthsor profit. operating enhance to steps other and rationalisations costs flow, cash the strengthening for activities sary neces operations, stabilising for measures out carry a sustainable indebtedness level. All Group companies which will demonstrate in a lower and at the same time and determines the activities for divesting investments, companies of liabilities financial for plan restructuring a incorporates also strategy The adopted. was 2014 til In September, the new long-term business strategy un 6 months 6 months -75,903 -75,249 or less or less -31,117 -37,617 -2,687 -2,877 -292 -782 -177 -654 -115 -128 -654 -654 -951 less
-268,403 -267,953 -174,644 months months months -85,890 6 -12 6 -12 -6,427 6 -12 -450 -450 -450 -450 -962 -30 0 0 0 0 -26,739 -24,539 -11,588 -2,200 -2,200 -2,200 -8,043 -1,908 -3,000 -2,200 years years years 1 -2 -455 1 -2 1 -2 -455 0 0 0 -46,618 -44,971 -28,288 -13,467 -1,647 -1,647 -3,200 -1,647 years -1,647 years years 2 -5 -455 2 -5 2 -5 -455 -16 0 0 0 € inthousands € inthousands more than more than more than 5 years 5 years 5 years -305 -305 -288 -17 0 0 0 0 0 0 0 0 0 0 0 - - FINANCIAL REPORT ANNUAL REPORT 2011 173 - 0 0 0 0 0 -369 2010 2010 3,472 6,041 9,944 2,777 1,492 3,900 -9,576 -1,033 19,457 5 years -10,609 -10,609 more than more than € in thousands € in thousands 0 -327 -455 2 - 5 -455 years -3,413 -16,675 -30,196 -50,611 -51,066 0 734 2011 2011 4,417 5,523 3,900 2,775 -1,859 -455 1 - 2 -455 10,966 20,906 Carrying amount Carrying amount years -1,913 -6,461 -52,175 -111,935 -172,485 -172,940 0 0 -20 -962 -244 6 - 12 -62,981 -13,166 -77,373 -77,373 months -946 -177 -177 -1,170 or less -70,979 -33,941 -29,246 -136,282 -136,459 6 months partly also in tourism services is insured with SID (Prva SID with insured is services tourism in also partly Kreditna Zavarovalnica d.d.) , Ljubljana. In estate the business real it is not always possible to have in- surance, therefore measures to minimise exposure to credit risk rely on our own customer rating and insur ance estimates. - - -9,234 -1,087 -1,087 -33,961 -98,000 -34,017 -272,147 -447,360 -448,447 cash flows Contracted Contracted 8,581 1,087 1,087 33,904 91,545 26,515 amount 254,285 414,831 415,918 Carrying -
Non derivative financial Non derivative liabilities Insured bank loans (excluding associates) Trade payables and other Trade liabilities 31/12/2010 Loans from associated Loans from associated companies Bonds Total Derivative financial liabili ties Other financial liabilities Interest rate swaps used as risk hedging instruments TOTAL Other EU countries Other Increase of value adjustment Decrease of value adjustment Slovenia Initial balance End balance suing the credit ability of our customers and other busi other and customers our of ability credit the suing ness partners. To decrease exposure to this risk we make use of the customer rating system to supervise bad payers and carry out ongoing and manufacturing in receivables trade of majority The compensations. This is reduced by using a standardised policy of pur Credit risk Balance and movement of value adjustment in trade receivables Trade receivables by geographical region receivables Trade 174 ANNUAL REPORT 2011 FINANCIAL REPORT Maturing structureoftradereceivables interest rateincreasesby50basispoints. if thousand €1,913 by change would expense interest annual the 2011, of end the at Group Sava the of ness indebted- the Considering high. still is rates interest sensitivity of a loan portfolio in the case of the changed the however, rise, to expected not are zone Euro the in rates interest reference of levels the For2012, zone. Euro the in situation economic the with connected ly The movement of the future interest rates will be strong and month 3- rate interest reference a to tied loans hired of part largest the had Group Sava the 2011, In Sensitivity analysistointerestratechange Sensitivity analysistofinancialrisk 3-month EURIBOR Not due 6-month EURIBOR Due 0-30days Due morethan120days Due 31-120days Total 31/12/2011 1.36 % 1.22 % receivables 23,681 17,030 Gross 3,053 2,598 1,000 31/12/2010 1.01 % 1.23 %
Impairment 2011 2,775 2,516 Highest 248 1.62 % 1.83 % 10 value 1 - receivables is nothigh. risk currency foreign to company the of exposure the currency.domestic the to tied are sets For reason, this as of majority the and levelled, mutually outflows and inflows of majority the have companies Group Sava Sensitivity analysistoexchangeratevariation thousand. €580 by increase would 2011, of end the at valid as rate interest average present the to regard with pense ex interest the million, €10 of debts additional tracted in the amount of €382.6 million. If the Sava Group con system banking the with liabilities financial and long-term short- had Group Sava the 2011, of end the At Sensitivity analysistoenhancedindebtedness general economicsituationinEurope. interest the reflected which levels, low extremely reference at were rates the 2011, In EURIBOR. 6-month Lowest 20,906 1.00 % 1.22 % 16,782 3,052 value 990 Net 82
receivables 1.39 % 1.63 % Mean value 23,357 16,313 Gross 2,605 3,547 892
Daily standard Impairment 2010 deviation 0.68 % 0.62 % 3,900 3,520 280 57 43 € inthousands receivables of variance Coefficient 19,457 48.6 % 37.9 % 16,256 2,325 849 Net 27
- - - FINANCIAL REPORT ANNUAL REPORT 2011 175 - 0 0 0 0 -76 636 115 -724 2010 4,678 8,293 -9,260 -1,087 31,564 67,225 25,383 24,958 31,564 Level 3 -26,739 -33,828 -177,148 -167,204 Fair value Fair 0 0 € in thousands € in thousands 115 -76 636 115 -724 2,574 1,602 2010 -1,087 5,039 8,293 -9,336 -1,087 Level 2 67,225 25,383 24,958 -26,515 -33,828 -177,148 -167,204 Book value 0 0 2010 33,087 33,087 0 Level 1 -42 384 128 -715 2011 -8,433 -4,951 41,177 32,348 26,768 20,224 10,649 -25,967 -27,656 -17,898 -31,105 -303,143 115 Fair value Fair Total -1,087 67,225 66,253 0 -42 384 128 -715 2011 0 0 -8,329 -4,951 41,177 32,348 26,768 20,224 10,649 -26,515 -27,656 -17,898 -31,105 -303,143 Book value 11,890 11,890 Level 3 In connection with the assets classified at level 3, a sum a 3, level at classified assets the with connection In of €92 thousand was reallocated from level 1 in 2011, as well as impairments of €16,738 thousand and net sales of €3,028 thousand. Impairments in the amount of €16,528 thousand were shown in the income state ment, whereas impairments in the adjustment. revaluation amount equity in shown were thousand of €210 thousand €85 of profit a and thousand €1,609 of loss A were made in sales. 128 - -2,909 25,124 22,343 Level 2 0 0 2011 4,163 4,163 Level 1 128 Total -2,909 41,177 38,396 Level Level Level ascertained from the market data. at 31/12. their value being determined directly or indirectly on the basis of market data. be cannot value whose liabilities or Assets 3: price exchange stock at liabilities or Assets 1: 1, level at classified not liabilities or Assets 2:
Derivative financial instruments - liabilities Derivative financial instruments - assets Securities available for sale Total Securities available for sale Securities available for Assets available for sale Assets available for Non-current receivables – financial leasing Non-current receivables Other long-term receivables Short-term receivables Short-term Derivative financial instruments – interest rate swap Derivative financial instruments – interest Granted loans Cash and cash equivalents Non-current loans at a fixed interest rate Long-term loans - issued bonds with fixed interest rate interest fixed with bonds issued - loans Long-term Long-term loans at a variable interest rate Liabilities available for sale Long-term operating liabilities Current loans Derivative financial instruments – interest rate swap Derivative financial instruments – interest Liabilities for dividends Current operating liabilities 1.3.39. Fair values of financial instruments values Fair 1.3.39. Fair financial instruments values of Classification of financial instruments with regard to their fair value calculation • • • The financial instruments valued at fair value are clas sified at three levels: The hierarchy of fair values 176 ANNUAL REPORT 2011 FINANCIAL REPORT Gorenjska Bankad. • Other transactionswithGorenjskaBankad.d. 5.30% and5.50%. 5.20%, rate interest fixed the and 0.75% + EURIBOR jska Banka d.d.:3-month EURIBOR + 4.90% , 6-month Goren from loans on paid are rates interest Various with Termsthese for loans d.d. conditions Banka and Gorenjska raise Group Sava the in companies The b) Relationswiththeassociatedcompanies knowledge. of centres competence the by provided services and name, brand of use equipment, and property of rent include which services, provided to related mainly ies Business relations between Sava d.d. and its subsidiar a) Relationswithsubsidiaries and theircloserfamilymembers. Group the in subsidiaries and company parent the of board management boards, supervisory of members associates, and subsidiaries include parties Related 1.3.41. Relatedparties in the amount of €490 thousand, whereas in the past the in whereas thousand, €490 of amount the in At 31/12/2011 the Sava Group had contingent liabilities 1.3.40. Contingentliabilities Overview oftransactionswithGorenjskaBankad.d. Balance ofobtainedloansat01/01 Balance ofobtainedloansatperiodend Foreign exchangediferences Repayment ofloans Hiring newloans Balance ofdepositsatperiodend Ownership stakeofGorenjskaBankainSavad.d. Number ofSavad.d.sharesownedbyGorenjskaBanka
31/12/2010, operating receivables due from Go 2010: €2thousand); (in thousand €2 to amounted d.d. Banka renjska at - - - the valueof€3,345thousand. in d.d. Banka Gorenjska of shares pledged 5,688 and thousand, €17,214 to amounted 31/12/2011 at which guarantees, issued the to referred banks, to liabilities as shown are statements financial consolidated the in which banks, from obtained subsidiaries of loans For transaction. length arm’s ordinary an in valid as conditions same Business among related parties is performed under the claims areexplainedunderitem1.3.43. Denationalisation million. €1.0 to amounted they year with asimilarrating. transactions equal those effective for other companies • •
2011, 2011, financial revenues were made in doing bu 31/12/2010, the balance of current operating lia in at sand). thou- €1,721 thousand(in2010: expenses €2,316 interest and thousand), €7 2010: (in thousand €20 of amount the in d.d. Banka Gorenjska with siness unted to€500thousand(in2010;€496thousand); bilities from interest to Gorenjska Banka d.d. amo- -19,978 37,717 38,564 20,825 2.81 % 56,475 2011 2011 0 0 € inthousands -24,638 28,816 37,717 33,540 2.81 % 56,475 2010 2010 0 0 - - FINANCIAL REPORT ANNUAL REPORT 2011 177 - - - 0 0 2010 99,497 53,828 45,513 -91,182 € in thousand 0 2011 2,276 58,644 53,360 53,828 -59,112 bilities from interest to Abanka Vipa d.d. amounted d.d. Vipa Abanka to interest from bilities to €241 thousand (in 2010: €208 thousand); at in interest expenses amounted to €2,604 thousand (in 2010: €2,102 thousand). lia operating current of balance the 31/12/2011, doing business with Abanka Vipa d.d. in 2011,
• • Other transactions with Abanko Vipa d.d. Other transactions with Abanko Vipa MAKSIMA INVEST d.d., Ljubljana In 2011,Sava d.d. received a loan of €225 thousand from Maksima Invest d.d. During the year it already paid off €105 thousand, the financial liability to Maksi ma Invest d.d. thus amounted to €121 thousand 31/12/2011. Interest at expenses amounted to €1 thou sand in 2011. actions equal those effective for other companies with a similar rating. - - - Balance of deposits at period end Balance of obtained loans at period end Foreign exchange diferences Foreign Repayment of loans Hiring new loans Balance of obtained loans at 01/01 Balance of obtained enues amounted to €1,579 thousand (in 2010: €233 thousand), financial revenues from operating receiv ables amounted to €49 thousand in 2011 2010). (none in NFD HOLDING d.d., Ljubljana At 31/12/2011 the receivable due ing from d.d. arising NFD from the Hold- granted loans amounted to €22,374 thousand (at 31/12/2010: €24,374 thousand). Operating receivables from the computed interests at 31/12/2011 were shown in the amount of €899 thou- sand (in 2010: €440 thousand). In 2011, interest rev Various Various interest rates are Abanka charged Vipa on d.d.: loans 3 – from + EURIBOR 3-month and month 0.85% + EURIBOR 6-month EURIBOR + 0.60%, 4.5%, and the fixed interest rates of 5.60% and 5.80%. to 1.20%. The interest rate for deposit amounted Overview of transactions with Abanka Vipa d.d. Overview of transactions The companies in the Sava trans Group these for conditions and raise Terms d.d. Vipa Abanka loans with Abanka Vipa d.d., Ljubljana Abanka Vipa 178 ANNUAL REPORT 2011 FINANCIAL REPORT 1.3.42. Disclosingbusinesswithauditors Company receivablesduefromrelatednaturalpersons Gross remunerationsin2011 for December 2011, which were paid in January 2012. January in paid were which 2011, December for wages monthly regular for only shown were persons related the to d.d. Sava of liabilities the 31/12/2011, At interest rateonthedayofloanapproval. market effective the at granted were Loans ployees. em- to loans housing granted to relate Receivables Ownership oftheSavashareat31/12/2011 ership. own of 0.027% represents which d.d., Sava company parent the in shares 551 own persons natural Related C) Relationswithnaturalpersons Total Other non-auditingservices Tax consultingcost Costs ofotherauditingservices Auditing costsofannualreport Supervisory BoardmembersinGroupcompanies Other employeeswithmanagerialcontractsinGroupcompanies Board membersandofmanagementinGroupcompanies Board membersandofmanagementinGroupcompanies Other employeeswithmanagerialcontractsinGroupcompanies Supervisory BoardmembersinGroupcompanies Total Supervisory Boardmembersinsubsidiaries Managers insubsidiaries Sava d.d.SupervisoryBoardmembers Closer familymembersofSavad.d.Board Management BoardofSavad.d.members - of Savad.d. nutely disclosed under item 2.5.7 of the financial report mi- is Board Management the by remunerations The monthly payments. interim usual the from deviate not does amount The No. ofshares 3,113 9,246 2011 2011 2011 163 551 246 151 169 180 125 11 67 1 0 0 0 4 0 Stake incapital € inthousands € inthousands € inthousands € inthousands 0.027% 0.000% 0.012% 0.009% 0.006% 0.000% 2,400 9,956 2010 2010 2010 222 161 221 58 76 33 3 0 0 FINANCIAL REPORT ANNUAL REPORT 2011 179 ------
b) Denationalisation claim – Mayer b) Denationalisation The subject of the denationalisation claim is land and a park around Hotel Savica in Bled measuring 8,084 sq m. As proposed by the denationalisation claimant, the court issued two temporary orders to interdict any change of the actual and legal status of the real estate denationali the until it encumber or it of disposing and sation claim is complete. The District Court issued an interim order which deter mined that the property is not privatised, therefore the company is liable for returning it back in kind. After a complaint was filed in court, the Higher Court rejected the claim by the denationalisation claimant who then appealed for a review, on the basis of which the Su preme Court annulled the resolution that has been fa vourable to the company and returned the matter to the Court of First Instance. In a repeated procedure, the court partly stopped the procedure and annulled the insurance on real estate, on which insurance was imposed in 1992 and 2005, but later they were no lon- ger subject of returning in kind. The procedure at the District Court has not yet been completed. ho the with whole a forms property this opinion, our In tel Savica, therefore returning it in kind is not possible. have would claimant denationalisation the case, this In the possibility to obtain shares, which are reserved at the DSU. c) Denationalisation claim – Dermastja The subject to the denationalisation claim has a one third stake in the old Park hotel. The temporary order tempo a therefore expiration, term the after in filed was rary order was not issued, and the administrative body decided that claimants were not entitled to returning ownership stake in kind. The claimant, and claimants who subsequently entered a dispute, filed plaints against the resolution concerning the in privatisa- - com tion. The Administrative Court rejected the complaint. The complaint was then filed at the Supreme Court, which has not yet made a decision regarding this mat estimates company the of Board Management The ter. that the claimants will fail in their litigation procedure. - - - the
with denationalisation claims with denationalisation liabilities) (contingent Höhn-Šarič denationalisation procedure. The appli- cants of the denationalisation claim require a part of Un- returned. be to resort health the within property the til 2009, the question of granting citizenship to one of the applicants was processed, and for one applicant is still underway. the procedure of granting citizenship 1.3.43. Explanations in connection Explanations in 1.3.43. nationalisation procedure. The company management estimates that once the procedure is complete, it will repurchase the remaining part of the property. spa resort complex. This facility was excluded from the from excluded was facility This complex. resort spa ownership restructuring until the completion of the de On the basis of a proposal for issuance of a temporary a of issuance for proposal a of basis the On order, the property which is the subject of the proce Zdravilišče Radenci d.o.o. is one of the parties in the claim – Zdravilišče Radenci a) Denationalisation In December 2011, the competent administrative au entirely Radenci Zdravilišče company the past, years In of part a forms which facilities, its of one renovated dure was eliminated from the ownership restructuring of the company until the denationalisation procedure is finished, therefore Zdravilišče Radenci d.o.o. keeps this property under off-balance. thority issued a resolution about discontinuance the administrative of denationalisation procedure until a final decision about non-litigious proceedings beings carried out in the District Court of Novo Mesto. Due to outcome the issues, actual and legal of complexity the of denationalisation procedure cannot be predicted in this phase, which is why any future liabilities of the company cannot be estimated. 180 ANNUAL REPORT 2011 FINANCIAL REPORT 1.3.44. Eventsafterthebalancesheetdate a) lowing events: financial statements. However, consolidated we would like to point the out the fol- in correction any require would they that nature such of not are events These are described in the business part of the annual report. The events thatappearedafterthe balance sheet date nomd h cnotu mmes that members consortium the informed ING time. that until d.d. Vipa Abanka in stake the of sale the for procedure the of results the on ING, bank advisor,financial common investment international the the by report the with acquainted became members consortium the 22/12/2011, on held meeting sortium con the In d.d. Vipa Abanka in stake ownership the of sale joint a for member consortium a was d.d. Sava
Procedure shares ofAbankaVipad.d. of selling a financial investment in the in investment financial a selling of ept the despite -
Chapter 10–Financialmanagement. reports, annual the of report business the in given is 2011 in companies Group Sava of area financial the in activities the with connection in explanation detailed A b) FinancialpositionoftheSavaGroup adopting thisresolution,whichwas5January2012. of day the on work its discontinued thus 2010 De cember in formed d.d. Vipa Abanka in stake the of sale joint the for consortium The consortium. the suspend and procedure sale joint the discontinue to decision a made members consortium the 2012, for environment macro-economic the of estimate the and procedure sale joint the on report the on Based repurchase. for sale procedure did not lead to receiving a binding offer the investors, potential certain by interest expressed - FINANCIAL REPORT ANNUAL REPORT 2011 181 - -
Matej Narat, MSc President of the Management Board The Management Board is responsible for the proper managing of its accounting procedures, establishing, operation and maintaining internal control in relation to the preparation and fair presentation of the finan cial statements, which do not contain misstatements originating any from fraud or material error, and for adopting suitable measures to secure assets and oth er funds. The Management Board confirms herewith that the financial statements and the notes have been produced on the going concern presumption and in accordance with current legislation and International by the EU. Financial Reporting Standards as adopted
- - -
Kranj, 27 March 2012 Kranj, 27 March 2012 Franci Strajnar, MSc Strajnar, Franci Member of the Management Board Andrej Andoljšek Member of the Management Board Member of the Management Board Miha Resman Sava Group Statement of Management`s of Management`s Statement the for responsibilites
The Management Board approves the consolidated The Management Board confirms that when draw 1.4. that year the for Group Sava the of statements financial 2011. ended on 31 December ing up the consolidated financial statements the cor responding accounting policies applied, were the accounting consistently estimates were man good and prudence of principle the to according elaborated agement, and that the annual report gives a true and results business and assets company’s the of view fair in the year 2011. 182 ANNUAL REPORT 2011 FINANCIAL REPORT ndependent auditor`s report 1.5.
for theSavaGroup I
FINANCIAL REPORT ANNUAL REPORT 2011 183 184 ANNUAL REPORT 2011 FINANCIAL REPORT 2 Balance sheetofSavad.d.at31/12/2011 2.1. 2 VI. DEFERREDTAX RECEIVABLES 3.Long-termreceivablesto other entities 2.Long-termoperatingtrade receivables 1.Long-termoperatingreceivables tocompaniesintheGroup V. LONG-TERM OPERATING RECEIVABLES c)Long-termunpaidcalled-upcapital b)Long-termloanstootherentities a)Long-termloanstocompaniesintheGroup c)Othersharesandstakes b)Sharesandstakesinassociates a)SharesandstakesinGroup'scompanies 1.Long-termfinancialinvestmentsexceptloans 2.Long-termloans d)Otherlong-termfinancialinvestments IV. LONG-TERM FINANCIALINVESTMENTS 3.Notleased 2.Leasedtoothercompanies 1.Leasedtosubsidiaries III. INVESTMENTPROPERTY b)Advancesfortangiblefixedassets a)Tangible fixedassetsunderconstructionandmanufacture 4.Tangible fixedassetsunderconstruction 3.Otherequipment 2.Plantandmachinery b)Buildings a)Land 1.Landandbuildings II.TANGIBLE FIXEDASSETS 5.Otherlong-termdeferredcostsandaccruedrevenues 4.Long-termdeferreddevelopmentcosts 3.Advancesforintangiblefixedassets 2.Goodwill 1.Long-termindustrialpropertyrights AND ACCRUEDREVENUES I. INTANGIBLE ANDLONG-TERM FIXEDASSETS DEFERREDCOSTS A. FIXED ASSETS FIXEDASSETS A. ASSETS
Slovene AccountingStandards with notesinaccordance Financial statementsofSavad.d. Slovene AccountingStandards in accordancewith Financial statementsofSavad.d.
Notes 2.4.6. 2.4.5. 2.4.4. 2.4.3. 2.4.2. 2.4.1.
31/12/2011 326,093 366,642 125,009 156,694 322,833
25,065 15,127 41,130 3,260 3,260 2,052 4,304 8,771 153 141 151 141 63 63 0 0 0 0 0 0 0 0 2 0 0 0 0 0 0 0 € inthousands 31/12/2010 450,794 487,341 237,537 145,497 450,062 11,442 19,421 67,028 15,328 5,392 4,294 4,294 2,052 2,041 143 149 732 143 732 121 121 164 813 149 0 0 0 0 0 0 0 0 0 0 0 FINANCIAL REPORT ANNUAL REPORT 2011 185 2 0 0 0 0 0 0 0 0 0 0 2 0 0 299 115 115 111 2,864 3,344 7,339 6,507 69,951 24,374 38,238 76,575 70,066 564,027 31/12/2010 € in thousands 0 0 0 0 0 0 0 0 0 0 0 0 0 0 993 118 471 128 128 114 1,464 1,582 17,962 19,426 43,282 22,145 19,554 410,038 31/12/2011 2.4.7. 2.4.9. 2.4.8. Notes 2.4.10. B. SHORT-TERM ASSETS B. SHORT-TERM I. ASSETS (GROUPS FOR DISPOSAL) FOR SALE CASH V. ASSETS TOTAL 3. Short-term operating receivables to other entities 3. Short-term 1. Cash on hand and accounts deposits 2. Short-term deposits Group’s companies a) Short-term deposits in associates b) Short-term deposits in other entities c) Short-term DEFERRED COSTS AND ACCRUED REVENUES C. SHORT-TERM 2. Short-term trade receivables 2. Short-term II. INVENTORIES a) Short-term loans to companies in the Group loans to companies in the Group a) Short-term unpaid called-in capital c) Short-term RECEIVABLES OPERATING SHORT-TERM IV. operating liabilities to companies in the Group 1. Short-term b) Short-term loans to other entities b) Short-term 1. Material in process 2. Work 3. Products and merchandise 4. Advances for inventories INVESTMENTS FINANCIAL III. SHORT-TERM a) Shares and stakes in Group's companies b) Other shares and stakes financial investments c) Other short-term loans 2. Short-term 1. Short-term financial investments except loans 1. Short-term 186 ANNUAL REPORT 2011 FINANCIAL REPORT 1.Long-termfinancialliabilitiestoGroup'scompanies III. DEFERREDTAX LIABILITIES 5.Otherlong-termoperatingliabilities 4.Long-termoperatingliabilitiesarisingfromadvances 3.Long-termbillspayables 2.Long-termtradepayables 1.Long-termoperatingliabilitiestoGroup'scompanies 3.Long-termfinancialliabilitiesarisingfrombonds 2.Long-termfinancialliabilitiestobanks I. LONG-TERM FINANCIALLIABILITIES II. LONG-TERM OPERATING LIABILITIES 4. Otherlong-termfinancialliabilities C. LONG-TERM LIABILITIES 3.Long-termaccruedcostsanddeferredrevenues 2.Otherprovisions 1.Provisionsforpensionsandsimilarliabilities DEFERREDREVENUES B. PROVISIONS ANDLONG-TERM ACCRUEDCOSTSAND VI. NETPROFITORLOSS FORTHEFINANCIALYEAR V. RETAINED NETPROFITORLOSS FROMPREVIOUSPERIODS -From short-term financialinvestments -From long-termfinancialinvestments -From intangiblefixedassets -From tangiblefixedassets IV. SURPLUS FROMREVALUATION 5.Otherrevenuereserves 4.Statutoryreserves 3.Treasury sharesandownbusinessstakes(asadeductibleitem) 2.Reservesfortreasurysharesandownbusinessstakes 1.Legalreserves III. REVENUERESERVES 1.Sharecapital CAPITALCALLED-UP II. CAPITAL RESERVES 2.Uncalledcapital(asadeductibleitem) A, CAPITALA, LIABILITIES 2.4.14. 2.4.13. 2.4.11. Notes 31/12/2011 42,296 13,177 43,990 83,751 87,654 26,515 13,177 83,751 -9,274 -4,977 1,694 7,756 8,000 4,977 332 332 25 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 € inthousands 31/12/2010 177,339 179,692 125,608 239,122 140,136 14,714 83,751 26,515 83,751 -4,977 2,353 8,519 6,530 4,688 6,000 7,532 4,977 8,519 7,182 280 280 0 0 0 0 0 0 0 0 0 0 0 0 0 0 FINANCIAL REPORT ANNUAL REPORT 2011 187 - 0 0 0 26 229 678 712 1,874 6,340 7,273 24,362 110,712 564,027 144,221 136,948 31/12/2010 € in thousands 0 0 0 57 129 281 9,325 9,792 1,235 11,781 12,362 242,892 410,038 276,827 267,035 31/12/2011 Notes 2.4.15. 2.4.16. D. SHORT-TERM LIABILITIES SHORT-TERM D. I. LIABILITIES INCLUDED IN GROUPS FOR DISPOSAL IN I. LIABILITIES INCLUDED II. SHORT-TERM FINANCIAL LIABILITIES II. SHORT-TERM 2. Short-term financial liabilities to banks 2. Short-term liabilities arising from bonds 3. Short-term liabilities financial 4. Other short-term III.SHORT-TERM OPERATING LIABILITIES OPERATING III.SHORT-TERM 1. Short-term financial liabilities to Group's companies 1. Short-term operating liabilities to Group's companies 1. Short-term trade payables 2. Short-term bills payables 3. Short-term operating liabilities arising from advances 4. Short-term 5. Other short-term operating liabilities 5. Other short-term ACCRUED COSTS AND DEFERRED REVENUES E. SHORT-TERM LIABILITIES TOTAL junction with the financial statements. The notes to the financial statements form a constituent part of therefore, the they latter, should be read in con 188 ANNUAL REPORT 2011 FINANCIAL REPORT Income statementofSavad.d.fortheperiodJanuary–December2011 a)FinancialrevenuesfromsharesinGroup'scompanies 10. FINANCIALREVENUESFROMSHARES 9. OPERATING LOSS 8. OTHEROPERATING EXPENSES c)Operatingexpensesfromrevaluationofcurrentassets fixedassets b)Operatingexpensesfromrevaluationofintangibleandtangible a)Amortisation 7. AMORTISATION ANDDEPRECIATION WRITE-OFFS EXPENSE, a)FinancialrevenuesfromloansgrantedtoGroup'scompanies 11. FINANCIALREVENUESFROMGRANTEDLOANS d)Financialrevenuesfromotherinvestments c)Financialrevenuesfromsharesinothercompanies b)Financialrevenuesfromsharesinassociates c)Otherlabourcost b)Financialrevenuesfrom operating receivablesduefromotherentities Group'scompanies a)Financialrevenuesfromoperatingreceivablesdue 12. FINANCIALREVENUESFROMOPERATING RECEIVABLES b)Financialrevenuesfromloansgrantedtootherentities -Pension insurancecost 4. OTHEROPERATING REVENUES -Socialsecuritycost 3. CAPITALISED OWNPRODUCTSANDSERVICES b)Socialsecuritycost(pensioninsuranceshownseparately) a)Salariesandwages COSTS 6. LABOUR b)Costofservices INFINANCIALINVESTMENTS 13. FINANCIALEXPENSESFROM IMPAIRMENT ANDWRITE-OFFS WORK IN PROGRESS WORKINPROGRESS 2. CHANGEINTHEVALUE OFINVENTORIESPRODUCTSAND To others To associates To companiesintheGroup b)Revenuesinforeignmarket To others To associates To companiesintheGroup a)Revenuesindomesticmarket 1. NETSALESREVENUES a)Costofmerchandiseandmaterialsoldcostused MATERIALS5. COSTSOFMERCHANDISE, ANDSERVICES (with operating revenues from revaluationent)
2.4.24. 2.4.23. 2.4.22. 2.4.25. 2.4.26. 2.4.21. 2.4.18. 2.4.27. 2.4.17. 2.4.20. Notes -159,763 14,593 11,053 -3,953 -3,482 -4,695 -2,407 -4,453 2,645 5,511 2,552 1,917 1,059 4,450 5,509 2011 -486 -822 -766 -630 -265 -180 -445 -242 988 728 -52 17 21 11 -4 0 0 0 6 0 0 2 2 0 € inthousands -95,162 30,192 17,037 11,783 -2,141 -2,496 -5,664 -1,900 -1,896 -5,336 3,946 8,727 1,588 1,372 2,853 1,093 1,602 7,122 8,724 2010 -345 -331 -143 -226 -226 -148 -374 -328 -98 12 12 0 0 0 0 0 0 3 3 0 FINANCIAL REPORT ANNUAL REPORT 2011 189 - 0 0 0 0 0 0 -47 319 207 2010 2010 2,591 6,461 -1,123 -1,269 -1,908 -1,152 -2,221 -27,712 -12,783 -72,903 -18,181 -27,077 -99,980 -72,903 € in thousands € in thousands 0 0 0 0 -7 -7 -4 959 599 806 -868 -879 2011 2011 6,323 4,658 -2,356 -1,908 -6,953 14,551 -15,271 -25,011 -156,126 -151,469 -156,126
-December 2011 -December 2011 Notes 2.4.28. 2.4.29. 2.4.29. 2.4.30. al statements form a constituent part of therefore, the they latter, should be read in con Other comprehensive income: of cash flow hedges - effective portion of changes in fair value financial assets - change in fair value of available-for-sale financial assets - deferred tax from change in fair value of available-for-sale - change in fair value of available-for-sale financial assets transferred to profit or loss - change in fair value of available-for-sale - deferred tax from a change in fair value of available-for-sale financial assets transferred - deferred tax from a change in fair value of available-for-sale to profit or loss Other comprehensive income for the period, net of income tax in the period Total comprehensive income for the period Total Net loss for the period 14. FINANCIAL EXPENSES FROM FINANCIAL LIABILITIES FROM FINANCIAL LIABILITIES 14. FINANCIAL EXPENSES companies from borrowings obtained from Group's a) Financial expenses from issued bonds c) Financial expenses b) Financial expenses from borrowings obtained from banks from borrowings obtained from banks b) Financial expenses from other financial liabilities d) Financial expenses 15. FINANCIAL EXPENSES FROM OPERATING LIABILITIES FROM OPERATING 15. FINANCIAL EXPENSES a) Financial expenses from operating liabilities due to Group's companies from operating liabilities due to Group's a) Financial expenses from trade payables and bill payables b) Financial expenses liabilities c) Financial expenses from other operating 16. OTHER REVENUES 17. OTHER EXPENSES 18. TAX ON PROFIT 18. TAX 19. DEFERRED TAXES 19. DEFERRED TAXES FOR THE FINANCIAL YEAR 20. NET LOSS Statement of comprehensive income of Sava d.d. for the period January Statement of comprehensive income The notes to the financi junction with the financial statements. 190 ANNUAL REPORT 2011 FINANCIAL REPORT Cash flowstatementofSavad.d.fortheperiodJanuary–December2011 b) Adjustmentsfor: a) Netprofit/lossforthefinancialyear CASHFLOWSA. FROMOPERATING ACTIVITIES receivablesandliabilities)balancesheetitems c) Changeinnetcurrentassets(andaccruals,deferrals,provisionsanddeferredtax b) Outflowsfrominvestingactivities a) Inflowsfrominvestingactivities B.CASHFLOWS FROMINVESTINGACTIVITIES c) Surplus in inflows from investing activities or surplus in outflows from investing activities operatingactivities d)Surplusininflowsfromoperatingactivitiesorsurplusofoutflows - Openingminusclosingoperatingreceivables - Closingminusopeningoperatingliabilities - Openingminusclosinginventories - Openingminusclosingassets(groupsfordisposal)sale - Openingminusclosingdeferredtaxreceivables - Openingminusclosingdeferredcostsandaccruedrevenues - Closingminusopeningdeferredtaxliabilities - Closingminusopeningaccruedcostsanddeferredrevenuesprovisions - Profittaxandothertaxes - Pre-taxprofit/loss - Revenuesfromdisposalofshort-term financialinvestments - Revenuesfromdisposaloflong-termfinancialinvestments - Revenuesfromdisposalofinvestmentproperty - Revenuesfromdisposaloftangiblefixedassets - Revenuesfromreceivedinterestsandsharesinprofitrelationtoinvestingactivities - Revenuesfromdisposalofintangiblefixedassets - Expensesforpurchaseofshort-term financialinvestments - Expensesforpurchaseoflong-termfinancialinvestments - Expensesforpurchaseofinvestmentproperties - Expensesforpurchaseoftangiblefixedassets - Expensesforpurchaseofintangiblefixedassets - Depreciation - Financialexpensesexcludingfinancialfromoperatingliabilities - Financialrevenuesexcludingfinancialfromoperatingreceivables financingactivities - Operatingexpensesfromrevaluationinconnectionwithitemsofinvestingand financingactivities - Operatingrevenuesfromrevaluationinconnectionwithitemsofinvestingand
-156,126 -170,677 168,422 184,774 -11,798 -21,103 -17,238 -13,623 -18,669 21,418 42,521 14,551 17,930 15,149 -1,920 -2,357 -1,144 9,439 3,895 2011 498 766 120 997 -63 -14 -3 0 0 3 0 0 0 0 € inthousands 142,989 113,343 100,811 -72,903 -17,932 -90,144 -11,004 -79,364 -34,138 -33,022 -57,017 79,831 52,845 31,682 -1,417 -7,024 -6,174 -3,793 6,461 1,900 4,596 5,900 2010 -776 -105 143 -78 -87 0 0 0 0 0 0 FINANCIAL REPORT ANNUAL REPORT 2011 191 0 2 0 2 2010 -4,753 -6,271 39,326 -16,217 -49,475 -41,841 203,052 237,625 -207,503 -279,466 € in thousands 0 0 0 2 -9 -2 2011 8,000 94,813 -24,819 -10,050 -89,853 -21,917 102,814 -124,731 - Revenues from paid-in capital - Revenues from paid-in - Revenues from increase in long-term financial liabilities - Revenues from increase financial liabilities in short-term - Revenues from increase - Expenses for interests related to financing - Expenses for interests - Expenses for return of capital - Expenses for return liabilities - Expenses for repayment of long-term financial - Expenses for repayment of short-term financial liabilities financial - Expenses for repayment of short-term other shares in profit - Expenses for payment of dividends and C. CASH FLOWS FROM FINANCING ACTIVITIES FROM FINANCING C. CASH FLOWS activities a) Inflows from financing b) Outflows from financing activities b) Outflows from financing D. CASH AND CASH EQUIVALENTS AT END OF PERIOD AT CASH AND CASH EQUIVALENTS D. a) Net increase in cash and cash equivalents c) Surplus in inflows from financing activities or surplus in expenses from financing activities c) Surplus in inflows from financing activities b) Cash and cash equivalents at beginning of period b) Cash and cash equivalents at beginning 192 ANNUAL REPORT 2011 FINANCIAL REPORT Statement ofchangesinequitySavad.d.fortheperiodfrom31/12/2010to31/12/2011 A.1. BALANCEATA.1. 31/12/2010 01/01/2011 INITIALBALANCE A.2. B.1. Changesinequity- fortheperiod B.2. Total comprehensiveincome C. ENDBALANCE31/12/2011 c)Settlinglossasdeductible B.3. Changeswithinequity a) Entry ofnetprofit/loss a)Entry c) Effective portion ofchanges c)Effectiveportion d)Changeinfairvalue e) Deferred taxfromachange e)Deferred f)Changeinfairvalueof g) Deferred taxfromachange g)Deferred toprofitorloss assetstobetransferred available-for-sale financial transactionswithowners capitalitem fortheperiod hedges infairvalueofcashflow financialassets ofavailable-for-sale for-sale financialassets infairvalueofavailbale- be transferred toprofitorloss betransferred for-sales financialassetsto infairvalueofavailable-
83,751 83,751 83,751 capital Share I/1 Called up capital 0 0 0 0
0 0 0 0 0 I Uncalled ductible (as de capital item) I/2 - 0 0 0 0 0 0 0 0 0 0 0 0 0 -125,608 -125,608 reserves reserves 125,608 125,608 Capital Capital II II 0 0 0 0 0 0 0 0 0 reserves -7,182 -7,182 Legal III/1 7,182 7,182 0 0 0 0 0 0 0 0 0 Reserve for Reserve business and own treasury treasury shares stakes III/2 4,977 4,977 4,977 Revenue reserves 0 0 0 0 0 0 0 0 0 0 stakes (as deductible business Treasury and own shares item) III/3 III -4,977 -4,977 -4,977 0 0 0 0 0 0 0 0 0 0 Statutory Statutory reserves III/4 0 0 0 0 0 0 0 0 0 0 0 0 0 reserves revenue -7,532 -7,532 Other III/5 7,532 7,532 0 0 0 0 0 0 0 0 0 Revaluation Revaluation reserve reserve 13,177 -2,356 IV IV 8,519 8,519 4,658 6,323 -868 959 599 0 0 0 0 Retained previous periods profit -6,530 -6,530 profit/loss from V/1 6,530 6,530 net Retained net 0 0 0 0 0 0 0 0 0 V Retained loss V/2 net
0 0 0 0 0 0 0 0 0 0 0 0 0 financial the financialyearfor for the Net profit/lossfor profit VI/1 year the financialyear Net 0 0 0 0 0 0 0 0 0 0 0 0 0 VI -156,126 -156,126 financial Net loss 146,852 146,852 € inthousands for the VI/2 year -9,274 0 0 0 0 0 0 0 0
-151,469 -156,126 239,122 239,122 capital 87,654 Total -2,356 6,323 -868 599 959 0 0 0 FINANCIAL REPORT ANNUAL REPORT 2011 193 0 0 0 0 0 0 0 319 2,591 -4,753 -1,152 -6,412 -1,123 Total capital -11,165 -99,980 -72,903 -27,712 2010 239,122 350,267 350,267 6,530 -6,412 49,198 36,647
-72,903
0 0 0 0 0 0 0 0 0 0 0 0 0 0 year VI/2 72,903 72,903 for the Net loss -72,903 -72,903 financial € in thousands € in thousands VI 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Net year VI/1 profit the financial year 13,690 13,690 for the Net profit/loss for Net profit/loss for -13,690 -13,690 financial the financial year for 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 net V/2 loss Retained Retained 2011 7,182 7,532 6,530 V 0 0 0 0 0 0 0 0 0 -9,274 125,608 6,530 -156,126 6,530 Retained net Retained net V/1 -6,412 -6,412 profit 13,690 22,957 22,957 profit/loss from previous periods -10,015 -30,235 Retained Retained 0 0 0 0 0 0 0 0 0 319 2,591 8,519 IV IV -1,152 -1,123 35,596 35,596 -27,077 -27,712 reserve reserve Revaluation Revaluation 0 0 0 0 0 0 0 0 0 0 0 7,532 III/5 -4,753 -6,530 Other 61,483 61,483 revenue -53,951 -42,668 reserves 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 III/4 reserves Statutory 0 0 0 0 0 0 0 0 0 0 0 0 0 -224 -224 -4,753 -4,753 -4,977 III III/3 item) shares and own Treasury Treasury business deductible stakes (as 0 0 0 0 0 0 0 0 0 0 0 0 0 Revenue reservesRevenue 224 224 4,753 4,753 4,977 III/2 stakes shares treasury and own business Reserve for 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 7,182 7,182 7,182 III/1 Legal reserves 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 II II Capital Capital 125,608 125,608 125,608 reserves reserves 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - I/2 item) capital (as de ductible Uncalled I 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 capital Called up I/1 Share capital 83,751 83,751 83,751
in fair value of availbale- financial assets for-sale and own business stakes income for the period in fair value of available-for- sales financial assets to be transferred to profit or loss net profit part for the comparative period to other capital components capital item shares and own business stakes from other capital components fair value of cash flow hedges financial available-for-sale assets financial available-for-sale assets to be transferred to profit or loss for the period transactions with owners Accumulated profit / loss at 01/01 Other changes Decrease due to payment of dividends/ stakes Decrease / reversal of capital reserves Decrease (reversal) of revenue reserves Retained profit/ loss at 01/01 NET PROFIT OR LOSS FOR THE FINANCIAL YEAR NET PROFIT OR LOSS B.2. Total comprehensive comprehensive B.2. Total f) Other changes in capital C. END BALANCE 31/12/2010 a) Allocation of the remaining c) Settling loss as deductible reserves d) Forming for treasury g) Deferred a change tax from B.3. Changes within equity d) Change in fair value of e) Deferred tax from a change f) Change in fair value of g) Dividend pay-out a) Entry of net profit/loss c) Effective portion in of changes A.1. BALANCE AT 31/12/2009 A.1. BALANCE AT A.2. INITIAL BALANCE 01/01/2010 B.1. Changes in equity - d) Purchase of treasury shares Calculation of the accumulated loss for Sava d.d. as at 31/12/2011 Calculation of the accumulated loss for Sava d.d. as at 31/12/2011 Statement of changes in equity of Sava d.d. for the period from 31/12/2009 to 31/12/2010 from 31/12/2009 for the period equity of Sava d.d. of changes in Statement 194 ANNUAL REPORT 2011 FINANCIAL REPORT an intangible fixed asset until it is put in service for use. of acquisition for loans on interest as well as taxes, ing Cost also includes import and non-refundable purchas- ment andaccumulatedlossesduetoimpairment. adjust depreciation less cost at measured are They defined. lives useful their have assets fixed Intangible Intangible assets 2.2.2. n 01 tee ee o hne i te accounting the in policies. changes no were there 2011, In Changes inaccountingpolicies ing up. round to due appear can differences together,minor adding When units. thousand one to rounded Euro, in presented is information financial All company. the of currency functional the been has 2007 January 1 of as which Euro, in presented are statements financial The Functional currency cial statementson27March2012. finan of issue the approved Board Management The been issuedbytheSloveneInstituteofAuditors. had which Standards, Accounting Slovene with dance The financial statements have been prepared in accor Statement ofcompliance website atwww.sava.si. company’s the on accessed be can report annual The the businessannualreport. of part a forms which structure, ownership and share of Sava d.d. is explained in the chapter about the Sava ended on 31 December 2011. which The ownership structure period the for up drawn been have d.d. Sava of statements financial The Group. Sava the of pany Financiranje, in Upravljanje Škofjeloška Cesta 6, 4000 Kranj, is za the controlling com Družba d.d., Sava Reporting company 2.2.1. 2.2.
Significant accountingpolicies statements Basis fordrawingthefinancial statements ofSavad.d. Notes tothefinancial
- - - - -
hc cn e trbtd iety o t paeet in placement its to directly attributed be can which expenses and taxes purchasing non-refundable and import expense, purchase its includes cost The cost. at valued is asset fixed tangible a recognition initial At pairment. im to due loss accumulated and adjustment ciation Tangible fixed ass Tangible fixedassets income statement. the in recognised are losses/gains exchange Foreign determined. is value fair when day the at ruling ECB of rate change ex reference the at euro to translated are value fair at and liabilities shown in foreign currency and measured ECB ruling at the transaction date. Non-monetary items the of rate exchange reference the at currency tional original value in foreign currency are translated to func at stated are that liabilities and assets Non-monetary income statement. the in recognised are losses/gains exchange Foreign end. period the at ECB of rate exchange reference the at calculated currency foreign in value repayment the and period the during payments and interest effective of amount the by adjusted period the of beginning the at currency functional in value repayment the between differences present gains/losses exchange Foreign period. accounting the of day last at ruling ECB the of rate exchange reference the at currency functional the to translated are date sheet balance the at currencies foreign in denominated liabilities and assets Monetary the ECBrulingattransactiondate. of rate exchange reference the at currency functional Transactionsthe to translated are currencies foreign in currencytransactions Foreign ets are measured at cost less depre - - - - FINANCIAL REPORT ANNUAL REPORT 2011 195 ------Past year Past from 2.0 to 5.0 from 5.0 to 33.3 from 10.0 to 25.0 from 10.0 to 20.0 Current year Current year from 2.0 to 5.0 from 5.0 to 33.3 from 10.0 to 20.0 from 10.0 to 25.0 Depreciation The carrying amount of a tangible fixed asset, intan gible fixed asset and investment property is decreased decreased is property investment and asset fixed gible through depreciation. We use the method of depreciation on a straight-line basis considering thereby the useful life of an asset. Land is not depreciated. The remaining value of a tan gible fixed asset is not assessed. Intangible fixed asset, tangible fixed asset and invest of day first the on depreciated be to start property ment the next month when it is available for use. A property which is built or developed to be used as an as with dealt is future the in property investment an investment property in construction and stated at cost until the completion date when it becomes an invest ment property. wheth to as made be should decision a when cases In er a property is an investment property or a an owner- occupied the property, property is classified as an in vestment property when more than 20 per cent of the property is used as investment property. When an investment property becomes owner-occu fixtures and fittings. pied, it is reclassified as property, Investment property is stated at the cost value model less depreciation adjustment and accumulated loss due to impairment. investment of value fair the disclosure of needs the For properties is ascertained.
------Intangible fixed assets Buildings Plant and machinery Other equipment gible fixed assets The useful lives of investment property equal those valid for property of the same kind which is kept as tangible fixed assets. The depreciation rates are based on the useful lives of the assets and amount to: The depreciation rates are based on the useful lives of the assets and Investment property is a property which is held either to earn rental income or for long-term investment ap Investment property Repairs of or maintaining tangible fixed assets are in nomic benefits embodied in the assets are higher than higher are assets the in embodied benefits nomic originally estimated. economic future the preserving or renewing for tended benefits expected on the basis of the originally as esti- recognised are They efficiency. asset of level mated expenses as incurred. intended not is property Investment both. or preciation, pro goods, of supply products, of manufacture the for fixed tangible like purposes office for or services viding assets. Investment property is also not intended for sale. short-term Subsequent expenditures in connection with tan tangible a with connection in expenditures Subsequent fixed asset increase its cost value if the future eco service for the intended use, especially expenses for its transport and installation and estimated cost of its Those parts of tangible fixed assets that have different fixed assets. useful lives are calculated as individual dismantling, removal and restoration. Costs are creased due in to the interests on loans for acquiring a until it is put in service for use. tangible fixed asset 196 ANNUAL REPORT 2011 FINANCIAL REPORT the fair value; the recoverable value is the lower of both. and flows) cash discounted of (estimate use in value by verifying the recoverable value, i.e. verification of the out carried is estimate impairment The examined. are impairments for signs year a once least at and cost at at cost. In valued the parent company, the are associates are valued associates and subsidiaries in ments invest financial long-term statements financial the In paid sumofmoneyoritsequivalents. the equals which purchase, of cost the at recognised initially are loans approved as well as state the or nies other companies or debtor’s securities of other compa Financial investment in capital, proprietary securities of trading. for held not are and year, one than more for session pos in are which those are investments financial term Long- investments. financial short-term and long- as stated are investments financial sheet balance the In Financial investments and therisksspecifictoasset. current market assessments of the time value of money present value using a pre-tax discount rate that reflects their to discounted are flows cash future estimated the use, in value assessing In costs. selling less value fair or use in values fair their of greater the is unit erating cash-gen a or asset an of amount recoverable The group. the in item each of amount carrying the to proportion in units) of (group unit the of assets other to located al- is impairment an from arising unit cash-generating a in recognised Loss statement. income the in stated is Impairment assets. of groups or assets other from inflows financial on depend not do extent great a to that inflows financial generates which assets of group coverable value. A cash-generating unit is the smallest re- is its exceeds amount items carrying its when cash-generating recognised or assets of Impairment coverable valueoftheassetisestimated. re- the impaired, are they If impaired. are they whether ascertain to order in property investment and assets tangible assets, intangible of re amount carrying maining the examines company the year a once least At assets tangible assets, intangible of Impairment and investmentproperty - - - - -
current borrowingpowerofswapparticipants. and rates interest current thereby considering date, suspending the interest rate swap at the balance sheet estimated upon pay or the receive would company is the that amount swap interest an of value fair The or groupofinvestments. investment each for separately out carried is asset cial finan the in impairment the of examination The asset. financial the of value cost the than lower 20% is date sheet balance the on asset financial the of value fair the when exists investment financial a of examination the for evidence impartial that considered is It pense. ex financial a as statement income the in recognised is impairment the impaired, long-term is asset the that evidence impartial exists there and reserve revaluation available for sale was recognised directly as a negative instrument financial a of value fair the in decrease a If is recognisedincapitalasarevaluationreserve. ried out on 31 December 2011. The change in fair value at least every three months, the last evaluation was car The fair value of securities available for sale is assessed whether thereexistsanindicationforimpairment. determining by ascertained is listed not are which nies compa of stakes and shares of value sheet fair The balance date. the on shares these of price bid the equals sale for available securities listed of value fair are recognised or reversed on the transaction day. The vestments in mutual funds. These financial instruments in- and companies unlisted of stakes and shares in investments companies, listed of shares in investment into divided are They sale. are for available as securities with dealt proprietary and debtor in vestments - in the acquisition their of purpose the to regard th Wi ready begun,disputable. al has procedure court a if and, doubtful considered respectively,amount, are total the in and term due the within settled be not assumed are which Receivables, tion withthingstheyreferto. rela in shown are sheet balance the in advances The every amount,whichisprovenbyanagreement. by decreased settlement, other any or payment of tive original receivables can later be increased, or irrespec The paid. be will they that condition on documents ing correspond the from arise that amounts the in shown are types all of receivables recognition, initial their At Receivables ------FINANCIAL REPORT ANNUAL REPORT 2011 197 ------on with the change in the organi- the in change the with on Liabilities Liabilities are either financial or operating, short-term or long-term. All liabilities are initially recognised with the amounts arising from the corresponding documents about their appearance, which prove the receipt of cash or demption of any operating liability. re Long-term liabilities are further increased by imputed oth any and amounts repaid by decreased or interests er settlements, agreed upon with a The creditor. book value of long-term liabilities equals their original value decreased by repayment of the principal and transfers under short-term liabilities until the need for a revalua tion adjustment of long-term debts appears. orig- their equals liabilities short-term of value book The inal value adjusted by their increases or decreases as agreed upon with the creditors until the need for their revaluation adjustment appears. Short-term and long-term liabilities of all initially shown with kinds the amounts are which arise from the corresponding documents on condition that the credi tors request their repayment. The liabilities are later in creased with imputed yields (interests, other compen sations), about which an agreement is made with the creditor. Liabilities are decreased by repaid amounts credi the with agreement in settlements other any and tor. When measuring long-term liabilities the company fol- upon agreed being rate interest the that policy the lows does not considerably differ from the effective interest rate if the difference is not more than one percentage point. employees in connecti in employees sational structure of Sava d.d. and the change in the Sava Group. model of the management Government grants are recognised in financial state ments as deferred revenue when received and there is reasonable assurance that it will comply with the conditions attaching to it. Grants that compensate for expenses incurred are recognised as revenue on systematic a basis in the same periods in which the ex penses are incurred. Grants are strictly recognised in the income statement as other operating income on a of the asset. systematic basis over the useful life ------e pays to the n receivables are formed a a and receivables filed in a bankruptcy proceeding proceeding; and and obligatory enforcement according to the best professional judgement are the about doubt reasonable a is there and doubtful outcome of a possible law suit due to customer insolvency. 100 per cent adjustment for receivables which 100 per cent adjustment in all sued receivables
Long-term and short-term provisions Long-term and short-term Provisions are recognised if a company due to a past event has legal or indirect liabilities that can be reliably estimated and it is likely that to settle the liability an outflow of assets which assure economic benefits will dis by defined is provision of amount The required. be In accordance with the legal regulations, agreement and internal collective book of rules the company is obliged to pay employee jubilee benefits and retire vested by owners, and the sums that appeared during by decreased is It owners. the to belong and operation and shares own repurchased operations, from loss the withdrawals (payments). The total capital comprises share capital, capital reserves, revenue reserves, re- tained net profit, fair value reserve and own shares as a deductible item. counting the expected future cash flows using a pre- tax discount rate that reflects current market assess specific risks the and money of value time the of ments to the liability. ment amounts, for which it forms long-term provisions in the amount of the estimated future payments of re tirement amounts and jubilee bonuses discounted at the balance sheet date. There are no other retirement liabilities. Provisions for the reorganisation include direct reor ganisation costs and refer to severanc Capital Total capital of a company is its liability towards owners which its falls due if the company discontinues in sums the of basis the on determined is It operation. Cash and cash equivalents comprise cash balances on transaction accounts. Cash and cash equivalents • • The revaluation adjustments i as follows: 198 ANNUAL REPORT 2011 FINANCIAL REPORT ttmn. neet eeus r rcgie a they as recognised are revenues Interest statement. income the in hedging recognised are they from when instruments proceeds and for gains sale, exchange for eign available assets financial of disposal from revenues dividends, from revenues vestments, in- from revenues interest include revenues Financial Financial revenues value overtheircarryingamount. selling their of surpluses as property investment and assets fixed intangible assets, fixed tangible of posal dis a upon arise revaluation from revenues Operating pose. pur this for approved are that amounts in measured Revenues from received subsidies or endowments are the rentperiod. during basis are line straight a on revenues in property recognised investment from rents from Revenues work performed. level of completenessisestimatedwithasurveythe The date. reporting the on transaction a of pleteness com the of level the to regard with statement income the in recognised are rendered services from Revenue Operating revenues already implemented attheirappearance. not were these if earnings in result will they expect to legitimate is it when recognised are enues and such an increase could be reliably measured. Rev liability a in decrease a or asset an in increase an with connected is period accounting the in benefits nomic eco of enhancement the if recognised are Revenues Recognition ofrevenues term deferredrevenuesandshort-term accruedcost. short- include revenues deferred and costs Accrued costs. short-termdeferred and revenues accrued term short- include revenues accrued and costs Deferred products andservicestotheirdebit. include appear,assets then while will debts and ables entities or natural persons towards whom actual receiv legal known yet not and known the to relate liabilities and Receivables estimated. reliably size their and able prob- is appearance whose and year a within appear to anticipated are that liabilities and assets other and receivables include deferrals and accruals Short-term Short-term accrualsanddeferrals ------
ing adoptsaresolutionaboutdividendpayment. Meet Shareholders’ the when period the in statement income the in recognised are dividends from enues Rev method. rate interest effective an using by arise and currentassetsduetotheirimpairment. assets fixed intangible assets, fixed tangible with tion connec in arise revaluation from expenses Operating riod, towhichtheyrelate. pe- the in respectively, provided, service and used is material the when recognised are expenses Operating Operating expenses decrease couldbereliablymeasured. this and liabilities in increase an or assets in decrease a with connected is period accounting the in benefits economic in decrease a if recognised are Expenses Recognition ofexpenses appear inactuallyincurredamounts. They items. extraordinary of consist revenues Other Other revenues adjustment to tax payable in respect of previous years. any and date, sheet balance the at enacted stantially sub- or enacted rates tax using year, the for income taxable the on payable tax expected the is tax Current is recognisedinequity. it case equity,which in in directly recognised items to the income statement except to the extent that it relates in recognised is tax Income tax. deferred and current comprises year the for loss or profit the on tax Income Income taxanddeferred appear inactuallyincurredamounts. They items. extraordinary of consist expenses Other Other expenses tion, respectively. prepara and construction under assets fixed tangible and intangible to attributed are which those for except method rate effective the to according recognised are borrowing for expenses the statement income the In statement. income the in recognised are which ments, instru hedging of loss and assets financial of value eign exchange losses, losses due to impairment in the for interest, for expenses include expenses Financial Financial expenses ------FINANCIAL REPORT ANNUAL REPORT 2011 199 - - - -
significant interest. We continually study investment Foreign currency risk to due benefits economic losing of risk a involves This d.d. Sava rates. exchange currency foreign in changes mainly does business in the Euro Zone, but it also has investments in the markets of Croatia, Serbia, Mace- donia and Bosnia and Herzegovina, which is why it is Croa the of rates exchange the in changes to exposed Criteria of importance for disclosures Criteria of importance for least at policies accounting the states company The the assets and liabilities whose value exceeds 10 per cent of the value of assets or liabilities at the balance sheet date. The company discloses an individual asset or debt at sheet balance the of cent per 10 exceeds it when least company the when disclosed are amounts Lower total. busi- its of view fair a for importance of them evaluates ness. Drawing up cash flow statement The cash flow statement has been prepared in accor dance with SAS 26 - variant II. It has been prepared statement for by considering the data from the income the period January-December 2011 (for the past pe- riod January-December 2010), the balance sheet data as at 31/12/2011 and 31/12/2010 (for the past period 31/12/2010 and 31/12/2009), and other required data. The cash flow statement excludes values, which are not connected with revenues and expenses. tian Kuna, Serbian Dinar and Macedonian Denar. We actively pursue the macro-economic movements and geo- these in rates exchange foreign the in fluctuations graphical regions and try to protect ourselves against foreign currency risk by non-exposing to foreign cur rency risk. sion of any priority shares or shares issued of number the in exchangeable changes no were There bonds. year. during the a opportunities and have a plan designed for divesting certain investments in order to assure a suitable sol vency.
- - - - - s-
of the Group is divided into ordinary Financial risk management Financial risk management for Sava d.d .
ings of the share is calculated so as to divide profit with profit divide to as so calculated is share the of ings the weighted number of ordinary shares in the busi ness year. The diluted net earnings per share equal earnings the per share as basic the company is not in posse Share capital Net earnings per share personal no-par value shares, therefore the company states the basic earnings per share. The basic earn A deferred tax asset is recognised only to the extent for which it is probable that future taxable profits will be available against which the asset can be utilised. which for extent the to reduced are assets tax Deferred it is no longer probable that the related tax benefit will be realised. Deferred tax is provided using the balance sheet ability method, providing for temporary differences be- li tween the carrying amounts of assets and liabilities for for used amounts the and purposes reporting financial taxation purposes. The amount of deferred tax provid- ed is based on the expected manner of realisation or settlement of the carrying amount of assets and liabili ties, using tax rates enacted or substantively enacted date. at the balance sheet This risk is one of the most important risks that Sava d.d. faces as it is strongly associated with achieving the planned return and implementation of the outlined strategy. The year 2011 was marked with high price consequence a as investments financial in fluctuations A uncertainty. high and situation economic poor the of decrease in the value of financial assets significantly changed the assets structure of the parent company Sava d.d. and influenced its operating result in 2011. These risks are decreased by diversifying the invest This involves the risk that the company may suffer from suffer may company the that risk the involves This a loss in the economic benefits due to the changed value of financial assets. Sava d.d. is exposed to the following financial risks: Risk in the fair value change (price risk) ment portfolio and by actively erations supervising of the the companies, in which op- Sava d.d. holds
2.3. 200 ANNUAL REPORT 2011 FINANCIAL REPORT granted to NFD Holding d.d. were entirely secured with loans The thousand. €22,374 totalled year the of end the at value outstanding the that so principals of ment pay as thousand €2,000 of amount the in liabilities its of part a settled d.d. Holding NFD 2011, In d.d.. ing Hold- NFD to loans short-term two granted d.d. Sava ing d.d.andMaksimaInvestinthepast. in 2011 was due to transactions made with NFD Hold The major part of the increased credit risk of Sava d.d. compensations. ongoing out carrying and payers bad over supervising for system rating customer a lished Weterms. payment estab average have of movement and receivables of structure maturity the receivables, outstanding and open monitor regularly We tionship. rela business a established has d.d. Sava which with Group, the of out customers of solvency to devoted is where the risk of non-payment is low. subsidiaries Special attention its to services its sells mainly d.d. Sava or notatall. delay with settled be will partners business other from ents a danger that trade receivables or receivables due pres and risk commercial with connected directly is cause the company to make a financial loss. Credit risk will and obligations its meet not will relationship ness This involves a risk that a customer engaged in a busi Credit risk loans ishedgedagainstinterestrisk. obtained of 4.6% circumstances. economic uncertain these in high is rate interest market the in changes of risk The changes. rate interest from arising risks inate We use suitable derivative financial instruments to elim activities. all of coordinator main the as appears d.d. the Group defined, at which the parent company Sava within policy indebtedness standardised a and banks interest manage with appearance uniform a have and centrally risk rate we Group Sava the of level the At to changes inthemarketinterestrates. due fluctuate will costs indebtedness and ment instru financial of value the that risk a involves This Interest raterisk able tosuccessfullyeliminaterisksinthisconnection. avail were instruments hedge suitable no as market, the in Euro for that and currencies above-mentioned the for rates interest the between differences high to owing risk rate exchange against hedging for ments instru financial derivative any use not did we 2011, In ------we estimatecreditrisksforSavad.d.ashigh. events, business above-mentioned the Considering total. in impaired year,and the of end the at examined was fair value of the concluded forward sale option contract the purpose, reporting accounting €1,155 the For of thousand. value the in DNGG designation with d.d. Daimond by issued shares 14,780 for d.d. Invest ma Maksi with agreement sale forward a made d.d. Sava by €6,687thousandattheendof2011. impaired were loans the collateral, the of value ficient insuf the to Owing value. loans short-term the of 72% or thousand, €16,074 totals securities pledged the of value estimated The securities. and exchange of bills solvency risk in Sava d.d. in 2011 is estimated as high. Due to the aggravated situation in the money markets, the steps, whichaimatincreasing theoperatingprofit. other and rationalisation cost consolidation, flow cash for activities the operations, the stabilising for sures d.d., the subsidiaries of the Sava Group carry out mea- Sava company parent the in activities the with Parallel tainable levelofindebtednessthecompany. sus a assure and indebtedness lower to investments company’s of divesting for activities the defines and company the of liabilities financial for plan structuring re a includes strategy This adopted. was 2014 until period the for strategy business new September,a In banks-partners. the with relations of arrangement and tion to solvency, regular settlement of financial liabilities atten its of deal great a devoted d.d. Sava 2011, In ance andregularsettlementofliabilities. assur solvency for conditions difficult and sources the to access limited a caused which entities, economic to lines credit additional approving on focused Banks circum stances in money markets further deteriorated in 2011. the situation, economic difficult a to Owing companies. Group Sava all for conditions favourable most under the parent company and its subsidiaries, and financing of liquidity suitable assure to is arrangement such of uniform financial policy has been established. The goal a and managed centrally is risk solvency the Group, Sava the In time. due in liabilities financial its able fulfil be to not will company a that risk a involves This Solvency risk ------FINANCIAL REPORT ANNUAL REPORT 2011 201 - - - 14 -21 141 730 744 149 Total -581 -602 0 0 0 0 0 0 0 0 € in thousands revenues and accrued deferred costs Other long-term 0 0 0 0 0 0 0 0 Goodwill company of acquired of acquired
0 0 0 0 0 0 0 0 intagible Advances for long-term assets Intangible assets totalling €141 thousand included pur included thousand €141 totalling assets Intangible chased licences for the use of software programmes. In 2011, depreciation in the amount of €21 thousand was accounted for. amounted to €4,675 thousand. Minimum investments were carried out from own finance sources, therefore tan of value the increase not do borrowings of cost the gible fixed assets. In 2011, the depreciation of tangible fixed assets was accounted for in the amount of €453 thousand. the employees in the Sava Group to repurchase own shares, which it had acquired in 2010 in accordance with the provisions of the second and eighth indent of the first paragraph Article 247 of the Companies Act-1 it. The company offered the entire amount of 30,541 own shares, or 1.52% of the company’s share capital, for repurchase. Regulatory bodies do not have any capital require ments towards the parent company or subsidiaries in the Sava Group. 14 -21 141 730 744 149 -581 -602 - - -
Investments in and other rights
Property rights acquired rights to industrial property
0 0 0 0 0 0 0 0 costs deferred Long-term development T accrued revenues to the financial statements to the financial statements of Sava d.d. Intangible fixed assets and long-term deferred costs and Breakdown and notes
Cost value Increase, purchase ADJUSTMENT VALUE Balance at 01/01/2011 Balance at 31/12/2011 Balance at 01/01/2011 Balance at 31/12/2011 Depreciation CARRYING AMOUNT Balance at 01/01/2011 Balance at 31/12/2011 The value of tangible fixed assets totalling €153 thou 2.4.2. angible fixedassets sand was significantly lower in Labore, premises the comparison in property 2011, with In year. the previous Kranj, was sold to Savatech d.o.o. The book value of value, market fair a as defined was which property, this Movement of intangible fixed assets and long-term deferred costs and accrued revenues Movement of intangible fixed assets
2.4.1. 2.4. An adequate capital structure assures the confidence of investors, creditors, the market and facilitates sus options stock granting of programme no has d.d. Sava to its employees. In July 2011, the company offered Managing the capital Managing tainable development of the entire Sava Group. The Management Board of Sava d.d. improved the capital structure by introducing the financial restructuring pro gramme. 202 ANNUAL REPORT 2011 FINANCIAL REPORT standing loanamountedto€6,000thousand. out the of balance the 31/12/2011, At d.d. A Družba tals €6,314 thousand, for a loan hired with Pokojninska to value book whose Restaurant Panorama the with A mortgage was placed on the real estate of GH Toplice ket value,amountedto€4,060thousand. property,this of mar value fair a as defined was which book the d.o.o.; Savatech to sold was Kranj Labore, premises the in property investment the 2011, year.In ue being by €4,294 thousand lower than in the previous val- their structure, assets the of 4% represented sand thou €15,127 of amount the in property Investment 2.4.3. Movement otangiblefixedassets Transfers Balance at31/12/2011 Write-offs Balance at01/01/2011 VALUE ADJUSTMENT Decrease inuse Put Decrease Transfers Purchase, increase Purchase, Balance at01/01/2011 Cost value Balance at31/12/2011 Balance at01/01/2011 CARRYING AMOUNT Balance at31/12/2011 Depreciation Write-offs
Investment property Land 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Buildings -3,659 -7,953 7,953 4,294 3,820 -161 0 0 0 0 0 0 0 0 0 machinery Plant and -1,984 2,797 -825 -157 -845 -875 -230 976 813 151 - - - - 100 447 842 50 6 does notsignificantlydeviatefromthebookvalues. property investment of value fair the that estimate We accounted forintheamountof€292thousand. was property investment of depreciation the 2011, In of €128,068thousandwasoutstanding. cated loan granted in 2010. At 31/12/2011, the amount value syndi long-term book a for thousand, €1,691 total to amounted whose Ljubljana in BTC property the on and Kranj, in 6 cesta Škofjeloška Building fice Of Main the of land the on placed was mortgage A equipment Other -237 -383 400 164 272 -14 -62 15 13 -8 -7 2 0 7 6 and manufacture Tangible fixed assets under construction construction -116 121 121 -6 0 0 0 0 0 0 0 0 0 0 0 Advances for fixed assets tangible 0 0 0 0 0 0 0 0 0 0 0 0 € inthousands 0 0 0 11,272 -5,880 -9,211 5,392 4,539 -839 -852 -281 -453 Total 991 153 107 848 63 0 - - FINANCIAL REPORT ANNUAL REPORT 2011 203
- - - 165 970 -107 -292 Total -5,030 -5,596 -5,025 25,017 20,152 19,421 15,127 € in thousands 165 970 -107 -292 8,336 -2,571 -5,596 -5,025 15,767 13,361 10,171 properties Buildings-investment Buildings-investment . 0 0 0 0 0 0 9,250 6,791 9,250 6,791 -2,459 properties An Other An Estate companies was made in the €8,887 thousand. amount of represented the sale of shares of smaller companies Sava of d.d. the in Rubber Manufacturing division. ka Sava d.o.o., Kranj in the amount of €797 thou sand was carried out. Land-investment Energeti in investments financial of impairment decreases in the amount of €213 thousand impairment of financial investments in Real
The value of shares and stakes in the associated com associated the in stakes and shares of value The panies amounted to €125,009 thousand and was by €112,528 thousand or 47% lower than at the end of the previous year. The decrease was mainly due im- pairments of financial investments in associates in the amount of €112,242 thousand. • • b) Shares and stakes in the associated • companies For For the obtained loans of Sava d.d. total ownership stakes in Savatech d.o.o. and d.d. Sava were Turizem pledged, as well as a 51% stake in Sava IP d.o.o. The book value of the pledged stakes and shares of sub- sidiaries amounted to €158,844 thousand. The disclosures in connection with the composition of the Sava Group, share in capital and operating result are described in the financial part of the annual report for the Sava Group - - -
in the amount of in capital of Savatech d.o.o., Sava IP investment in Sava Medical in Storitve Long-term financial investments Long-term financial investments
Financial A increases d.o.o. in the amount of €2,881 thousand, designed thousand, €2,881 of amount the in d.o.o. transferred was 2012, in d.o.o. Savatech to sale for under assets available for sale. in the amount of €19,264 thousand, which was de- was which thousand, €19,264 of amount the in signed for sale in 2012, was transferred under as sets available for sale. d.o.o. and Ensa BH d.o.o., Srbac, in the amount of register the in entered were thousand €38,238 of companies, which had been approved already in 2010. In 2011, increases in capital of Sava Group companies were additionally approved and ente- red in the net amount of €5,001 thousand, which mainly referred to Sava Nova d.o.o. from Zagreb. The increases in capital totalled sand. €43,239 thou-
part of the financial investment in Sava IP d.o.o.
Cost value Balance at 01/01/2011 Transfers Decrease due to selling Balance at 31/12/2011 ADJUSTMENT VALUE Balance at 01/01/2011 Transfers Decrease due to selling Depreciation CARRYING AMOUNT Balance at 01/01/2011 Balance at 31/12/2011 Balance at 31/12/2011 Movement of investment property of investment Movement • • companies 8% or thousand €11,197 were thousand €156,694 ling follow The year. previous the of end the at than higher ing changes took place in 2011: • Shares and stakes in Sava Group companies total a) Shares and stakes in Sava Group a) Shares and stakes in Sava Group Long-term financial investments €326,093 thousand represented 80% of the balance sheet total and were €124,701 thousand or 28% lower than last year. 2.4.4. 204 ANNUAL REPORT 2011 FINANCIAL REPORT aa .. band Te ok au o te pledged shares amountedto€34,317thousand. the of value book The obtained. d.d. Sava All shares of Abanka Vipa d.d. are pledged for the loans €47,194 thousand. to amounted shares pledged the of value book The d.d. Sava of bonds issued the for and contract, option call the from arising liabilities the for d.o.o., Savatech of loan obtained the d.d., Sava of loans obtained the 80.260 shares of Gorenjska Banka d.d. are pledged for upin f aia fnnig o te ed f capital of need the for financing capital of sumption is scenario based pessimistic the in calculation value The marketability wasapplied. in shortage a for discount 10% a market, non-going a of assumption Under value. estimated the to added was adequacy capital for capital in surplus A 11.49%. of rate return requested the and 10%, of adequacy tal capi required the 2.8%, of growth long-term a 25%, of amount the in debt subordinated a with adequacy capital of need the for financing capital of sumption as- is under projections, scenario business optimistic optimistic on based the in calculation value The with a valid licence from the Slovene Auditors’ Institute. companies of evaluator certified a by out carried was evaluation The 2011. December 31 on updated was evaluation at produced as The d.d. produced. was Vipa 30/09/2011 Abanka of stake equity 23.8% a of evaluation the on report a purposes accounting For Estimating thevalueofa23.8%equitycapital • • 31/12/2011 in AbankaVipad.d.foraccountingpurposesat
value of a 23.83% stake of stake 23.83% a of value of €16perasharetotalled€27,453thousand. amount the in 2011 of day trading last the on price exchange stock the using investment of value The red by €82,532 thousand to reach €20 per a share. the evaluation the value of investment was impai was investment of value the evaluation the on based while change, not did stake ownership In thousand. year,the previous the of end the €34,317 with comparison to amounted Ljubljana e au o a 59% tk o Sv dd in d.d. Sava of stake d.d Banka Gorenjska 45.90% a of value The €588 on31/12/2011. to amounted d.d. Banka Gorenjska of shares the in investment financial The change. not did ment invest of value the and stakes ownership the year previous the of end the with comparison In sand. The on pessimistic business projections, under as under projections, business pessimistic on . amounted to €89,443 thou- €89,443 to amounted . Abanka Vipa d.d., Vipa Abanka - - - - the annualreportofSava Group. of part financial the in presented are operations from profit/loss and capital of amount the capital, in share the Group, Sava the of companies associated the of composition the with connection in disclosures The range from€19.9to€28perashare. the in given was estimate value The used. was 10% +/- range value the determining for while calculated, was value mean weighted the scenario, optimistic the counted cash flows method. Using the pessimistic and dis the on based was estimate value the on decision final The method. CAPM the of basis the on timated es- was rate discount The scenario. pessimistic the in 11.49% of rate discount a and scenario, optimistic flow was discounted with a discount rate 11.49% in cash the net Free basis. the as used was method flows cash discounted the evaluation, an performing When scenario. Thevaluerangeisdeterminedat+/-10%. pessimistic the and optimistic the in calculated mean value weighted the on based is estimate value The in marketabilitywasapplied. shortage a for discount 10% a market, non-going a of assumption Under value. estimated the to added was adequacy capital for capital in surplus of The rate 11.49%. return requested the and 10%, of adequacy capital required the 2.5%, of growth long-term 25%, of amount the in debt subordinated a with adequacy • • •
financial investment in a smaller associated asmaller in investment financial in stake 21.77% a of value in stake 24.65% a of value unted to€287thousand,wassoldin2011. company ment wasincludedintheincomestatement. invest of impairment The prices. exchange stock in drop further a of result a as 2011 in thousand while the value of investment decreased by €7,006 ous year, the ownership stake increased by 0.43%, previ the of end the with comparison In thousand. €252 to amounted 31/12/2011 at stock price exchange the using by ascertained Ljubljana, d.d., The The The in theincomestatement. prices. The impairment of investment was included 2011 as a result of a further drop in stock exchange of investments decreased by €22,704 thousand in year, the ownership stake did not change, the value previous the of end the with comparison In sand. thou €997 to amounted 31/12/2011, at price ge exchan stock the using by ascertained Ljubljana, JOB d.o.o., Maribor d.o.o., JOB , whose value amo value whose , NFD Holding d.d., Holding NFD asm Invest Maksima ------FINANCIAL REPORT ANNUAL REPORT 2011 205 - - 2,574 31,371 33,083 67,028 amounted 31/12/2010 € in thousands 4,159 25,123 11,848 41,130 31/12/2011 other shares and stakes to €16,007 thousand, and included 837,000 shares 837,000 included and thousand, €16,007 to of Hoteli Bernardin d.d., 13,500 shares of Kompas Bled d.d., 1,504 shares of NLB d.d., 4,987 shares Družba A of d.d., Pokojninska and 9,874 shares of Jubmes Banka d.d., pledged for the loans obtai- ned by Sava d.d. The book value of the pledged €3,703 thousand. shares amounts to The value of
• Forward option contracts sales and call Other shares and stakes forward sales included contract in the the amount of €1,155 thou concluded sand. The counter party in the forward sales contract is Maksima Invest d.d., the subject of the option being 14,780 shares of Daimond d.d. The agreed transac- tion price amounts to €78,16 per a share. The contract being date maturity the 2009, March 18 on signed was 18 February 2012. When estimating the ability of the counter party to fulfil the forward contract, we have es tablished the presence of higher risk, therefore an im- pairment of these shares was carried out in 2010 and 2011 totalling €1,155 thousand. The value of the call option €6,719 thousand. contract The amounted counter to party of the tion contract call is Factor op- Banka d.d., the subject of the option being 26,748 shares of NLB d.d. The agreed transaction price is €251.20 per a share. The contract was signed on 26 July 2010 and will fall due on 1 Oc- basis the ascertained on value market 2012. The tober of the book value of company’s capital, which is the subject of the option, amounted to €1,425 thousand. The difference between the value according to the call option contract and the market value totalled €5,294 thousand was included under financial expenses from impairments and write-offs of financial investments (in €2,715 year previous the in and thousand €2,579 2011: thousand). The counter-party received 6,050 shares of Gorenjska Banka d.d. as collateral for complying with the contract. The book value of pledged shares amounted to €3,558 thousand. - - - - NFD 1 Despite a 23.35% ownership stake, the investment the stake, ownership 23.35% a Despite in NFD 1 d.d. is considered as available for sale and not an associated company. NFD 1 d.d. is managed by the funds management in company, which Sava d.d. holds no shareholding. The Su supervises merely company the of Board pervisory restruc d.d. 1 NFD 2011, In operation. funds the tured from a closed investment fund to an open owner the became d.d. Sava which at fund, mutual of a certain amount of mutual fund coupons and has no influence whatsoever on its management. At 31/12/2011, NFD 1 fice d.d. at Trdinova 4, 1000 Ljubljana, with has capital of its head €102,719 thousand available, while the net loss of of 2011 amounted to €21,601 thousand. The entire 23.35% share in NFD 1 d.d. is pledged value book The d.d.. Sava by obtained loans the for of pledged shares amounts to €25,123 thousand. The d.d., Ljubljana amounted to €25,123 thousand. The fair value was ascertained by using the stock exchange price at 31/12/2011. The total of impairments value included in the income statement amounted to €9,404 thousand. value of a 23.35% ownership stake in
Mutual funds Total Shares and stakes of unlisted companies Shares of listed companies c) Other shares and stakes c) Other Types of securities available for sale Types • At 31/12/2011, securities available for sale were val- ued at fair value, the net negative effect from revalua Other shares and stakes totalling €41,130 thousand were €25,898 thousand or 39% lower than last year. Other shares and stakes included available for sale listed in the amount securities of €4,159 thousand, unlisted securities available for sale in the amount of in fund mutual a in investments and thousand, €11,848 thousand. the amount of €25,123 tion amounted to €20,073 thousand, of which €26,396 thousand were impairments in the income statement, while net increase in the value of financial investments totalling €6,323 thousand was shown in equity revalu- ation adjustments. 206 ANNUAL REPORT 2011 FINANCIAL REPORT Movement oflong-termoperatingreceivables sured byacreditor’smortgageonflats. in are loans These flats. of purchase the for ployees thousand referred to long-term loans approved to em €63 of amount the in receivables operating Long-term 2.4.5. Movement oflong-termfinancialinvestments Group to loans long-term for rates Interest change. ex of bills with insured partly were thousand €3,260 totalling companies Group Sava to loans Long-term d) Long-termloanstoGroupcompanies Balance at01/01/2011 GROSS VALUE money paidin Increase incapitalthrough Purchase, increase Increase duetoacquisition investment inkind Increase incapitalthrough Decrease Revaluation Transfers Balance at01/01/2011 VALUE ADJUSTMENT Balance at31/12/2011 investment inkind Increase incapitalthrough Purchase, increase Increase duetoacquisition Revaluation Transfers Decrease Balance at01/01/2011 NET VALUE Balance at31/12/2011 Balance at31/12/2011 Final balance Repayment ofreceivables Balance at01/01
Long-term operatingreceivables 146,413 168,140 145,497 156,694 -11,446 -15,617 -27,532 15,404 49,110 Stocks -6,233 -9,684 shares Group 5,387 in the -916 362 and Long-term financialinvestments,excludingloans Long-term 0 0 0 0 0 -126,291 -112,242 shares in 251,586 251,300 237,537 125,009 -14,049 associ- Stocks -287 ates and 0 1 0 0 0 0 0 0 0 0 0 122,753 118,809 -55,725 -77,678 -13,927 -26,396 67,028 41,130 shares stocks 1,674 1,993 6,323 4,436 Other and -7 0 0 0 0 0 7 long-term long-term financial invest- ments Other - - - 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 excluding loans receivables willfallduein2013atthelatest. operating Long-term 3%. + TOM to 2% + TOM from amounted loans housing granted for rate interest The +1.05%. +1%, and12-monthEURIBOR BOR companies amounted from 7.5% to 8%, 3-month EURI investments, long-term long-term -215,415 -148,322 520,752 538,249 450,062 322,833 financial -70,690 -29,831 -25,858 17,398 49,110 -6,233 6,323 5,387 4,436 Total 362 -7 0 7
Long-term loans Long-term companies Long-term Long-term loans to -1,188 -1,188 Group 4,448 3,260 3,727 -122 732 732 111 0 0 0 0 0 0 0 0 0 0 loans Other long- term term 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2011 Long-term Long-term 143 -80 called-up 63 unpaid capital
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -1,188 -1,188 4,448 3,260 3,727 loans long- -122 Total term term 732 732 111 € inthousands € inthousands 0 0 0 0 0 0 0 0 0 0 long-term long-term -216,603 -148,322 521,484 542,697 450,794 326,093 financial -70,690 -22,131 -29,953 17,509 49,110 -6,233 invest- 2010 ments 6,323 4,436 4,199 225 143 Total -82 362 -7 0 7 - FINANCIAL REPORT ANNUAL REPORT 2011 207
- - - 0 -9 19 792 -228 -282 2010 6,732 4,418 11,442 € in thousands 0 5 40 21 -948 -887 2011 15,392 25,065 11,442
Short Short Short totalling €15,687 thousand bills were of exchange and insured securities, which with included 9,154,192 shares of Hoteli Bernardin d.d., 346,243 shares of NFD 1 d.d., 647,318 shares of Istrabenz d.d., 166,484 shares of Melamin d.d., 56,839 sha- res of Finetol d.d., 536,926 shares of Ljubljanske €2,275 thousand. unt of €1,464 thousand were not insured. -term loans to others (NFD Holding d.d.) -term loans to Group companies in the amo -term deposits to banks in the amount of
• Short-term loans Short-term Short-term loans in the amount of €19,426 thousand were as follows: • • investments would cover the deferred tax from a tax loss. At 31/12/2011, the amount of the not accounted for deferred tax receivables from a tax loss amounted to €14,329 thousand. rest in the amount of €2,881 thousand referred to a financial investment in the subsidiary Sava Medical in Storitve d.o.o., which is expected to be sold to Savat ech d.o.o.in 2012 too. mainly due to the revaluation of securities available for sale and financial investments in the associated com panies to the fair value. panies to the fair value. - - - in the -term financial investments short-term short-term financial investments Short Assets for sale Deferred tax receivables Deferred
Decrease in receivables for provisions for retirement pay - through profit or loss Decrease in receivables for provisions for Other changes - through profit or loss Final balance Increase in receivables for provisions for retirement - through profit or loss Increase in receivables for provisions for Balance at 01/01 value - due to revaluation of securities to fair Increase in receivables income in other comprehensive Decrease in receivables due to revaluation of securities to fair value - Decrease in receivables due to revaluation in other comprehensive income - through profit or loss Decrease in receivables due to sale of securities of securities - through profit or loss Increase in receivables due to impairment Short-term Short-term financial investments except loans in the amount of €128 thousand were entirely the value of in amount of €19,554 thousand were significantly lower than last year, partly due to the entered increases in capital of subsidiaries in the register of financial long-term under same the of reallocation companies, and investments, and partly due to reducing the value of granted loans. financial investments except loans Short-term terest rate swaps. 2.4.8. The value of counted for, as counted it for, is estimated that no revenues will be generated in the foreseeable future that in to deferred addition receivables from impairments of financial 2.4.7. thou €22,145 to amounted sale for assets of value The Deferred tax receivables from a tax loss were not ac sand and referred to a part of the financial investment in the subsidiary Sava IP d.o.o., €19,264 Ljubljana, thousand earmarked totalling for selling in 2012. The Movement of deferred tax receivables Movement of deferred Deferred tax receivables due from formed in the amount the of €25,065 thousand state and were were were 2010. They of end the at than significantly higher 2.4.6. 208 ANNUAL REPORT 2011 FINANCIAL REPORT thousand was loan repayment, and a sum of €6,687 of sum a and repayment, loan was thousand de was d.d. Holding creased by €8,687 thousand, NFD of which a sum of €2,000 to loan the of balance the year, previous the of end the with comparison In niey tlsd t 11/01 Te iblte fo the from liabilities The 31/12/2011. at utilised entirely was and thousand €1,260 to amounted accounts tion transac- on credits overdraft of amount agreed The 2.4.10. Cashandcashequivalents The maturitystructureofreceivablesisshowninchapter 2.5.3–Financialinstrumentsfinancialrisks. Movement ofvalueadjustmentsintradereceivablesforservices parison with the previous year they were lower by €359 com in and thousand €428 to re amounted ceivables trade in adjustments revaluation 31/12/2011, At Value adjustments in trade receivables for services Short-term operatingreceivables bymaturity the saleofsecuritieswerenotappliedto. mainly due to the fact that the contractual provisions in of year,previous amount the in than lower were thousand €1,582 the in receivables operating Short-term 2.4.9. 3. Short-term operatingliabilitiestootherentities 2. Short-term tradereceivables 1. Short-term receivablesduefromGroupcompanies IV) Short-term operatingreceivables Balance at31/12 Decrease ofvalueadjustment Increase ofvalueadjustment Balance at01/01 to €16,074thousand. amounted pledge in securities of value estimated The lien-holder. second-entered the partly and lien-holder first-entered the partly is d.d. Sava ne, shares except for the shares of Ljubljanske Mlekar all With Sava. of shares 32,936 and d.d., Mlekarne
Short -term operatingreceivables - - - -
amounted from6.12%to7.3%. short-termgranted loans the for rate interest The d.d. TurizemSava of shares the and exchange of bills with secured is which d.d., NLB by granted loan the with side liability the on covered is d.d. Holding NFD from due receivables of part prevailing the which of basis the on receivables of assignment about contract The laterals forbothloans. col received of suitability the evaluating of basis the thousand eaie aac o te rnato acut were account shown undershort-term financial liabilities. transaction the on balance negative erating receivablesisnotinsured. thus remainedowned by Sava d.d.Aminorpartofop- contracts sales the of subject the being shares The adjustments weredecreasedby€399thousand. As a result of closing the court proceedings, the value formed. were thousand €40 of amount the in ables thousand. New revaluation adjustments in trade receiv- 31/12/2011 a ipimn o te on cmue on computed loan, the of impairment was TOTAL 1,582 993 118 471
Due 2011 -399 62 57 428 787 4 1 40 € inthousands € inthousands Not due 1,520 2010 787 704 989 470 -15 61 98 - FINANCIAL REPORT ANNUAL REPORT 2011 209 - - - - 2,286 21,482 48,535 53,305 125,608 31/12/2010 € in thousands 0 0 0 0 0 31/12/2011 net profit in the amount of €6,530 thou a a negative Retained Other amount of €7,182 thousand. Legal reserves in the Capital capital of Savatech d.o.o. and Sava IP d.o.o. in the in d.o.o. IP Sava and d.o.o. Savatech of capital amount of €12.416 thousand, which appeared as a difference between the estimated and the book value of investments in kind (at the end of 2010: €12,416 thousand); thousand. lable for sale in the amount of €949 thousand (at the end of 2010: €5,109 thousand); the (at thousand €188 of amount the in sale for ble end of 2010: €8,047 thousand). sand. sand. positive revaluation reserves from increases in positive revaluation reserve from securities avai availa securities from reserve revaluation revenue reserves in the amount of €7,532 reserves in the amount of €125,608 thou
• • • • • • • The loss made in the amount of €156,126 thousand was covered to the amount of €146,852 thousand by capital components: using the following The revaluation reserve structure: As per 31/12/2011, a part of the loss in the amount of using of way by covered be not could thousand €9,274 purpose. capital components earmarked for this - - a negative effect from interest rate reserve increased by €4,658 thousand thousand €4,658 by increased reserve et increase in fair value of securities available for sale in the amount of €3,699 thousand. Incorporating swaps totalling €959 thousand in the income statement. N
A Revaluation amount of €156,126 thousand. amount of €156,126 as follows: - - loss for the financial year was generated in the
Other capital reserves treasury shares exceeding net value - repurchased Payment RESERVES total CAPITAL Share premium from general equity revaluation adjustments Transfer vestments serve 2.4.11. Capital 2.4.11. At 31/12/2011, the revaluation reserve from long-term financial investments amounted to €13,177 thousand (at the end of 2010: €8,519 thousand), and compared to the end of the past year it was higher by 55%. Revaluation reserve from long-term financial in Sava d.d. received another 32,936 Sava pledge, which is 1.64% of totally issued shares. shares in At 31/12/2011 reserves for own shares amounted to €4,977 thousand, the number of own shares totalled 30,541, which was 1.52% of total issued 2011, shares. no In changes appeared with regard the end of 2010. Reserves for own shares within other revenue re A part of the loss made in 2011 was covered by way of using capital reserves, which at 31/12/2010 amounted to €125,608 thousand. Capital reserve structure • In 2011, the following changes were carried out in capital: in out carried were changes following the 2011, In • Changes in capital The value of capital totalling €87,654 thousand was by €151,468 thousand or by 63% lower than at the end of of structure the in share 21% a had it year; previous the financing sources. 210 ANNUAL REPORT 2011 FINANCIAL REPORT Movement ofprovisionsandlong-termaccruedcosts anddeferredrevenues the with accordance in retirement benefits jubilee and amounts assumptions: following the considering made was 31/12/2011 per as calculation actuary The amounts andjubileebenefits. retirement for provisions the represented entirely sand thou €332 of amount the in revenues deferred and costs accrued long-term and provisions of value The 2.4.13. Provisionsandlong-termaccrued The adjustednetlosspershareequalstheascapitalconsistsofordinarysharesonly Net lossattributabletoshares Weighted averagenumberofshares are freelytransferable.Allshareshavebeenpaidinfull.Thecompanyhasnobondsforconvertingintoshares. The share capital is divided in 2,006,987 ordinary personal no-par value shares, which all have voting rights and dividends Paid 2.4.12. Paid dividends,weightedaverage
Balance at31/12/2011 Drawing ofprovisions Newly formedprovisions Balance at01/01/2011 Net profitforthefinancialyear(€inthousands) No. ofallsharesat01/01 Total amountofdividendstothedebitretainedprofit(€inthousands) Dividend perordinaryshareintheyear(€) Weighted averagenumber ofshares Own shares Basic netearningspershare(in€) Weighted averagenumberofsharesat31/12 costsanddeferredrevenues numberofsharesandnetlosspershare amounts andsimilarliabilities Provisions forretirement
- 332 280 55 -3 with ahighratingintheEuroZone. % annually and represents a yield of 10-year loan stock while the chosen discount interest rate amounts fluctuation, to 4.80 employee benefits, jubilee and amounts work retirement wages, individual in growth annual 3.5% a and contracts, collective the from provisions provisions Other 0 0 0 0
Long-term accruedcosts and deferredrevenues 2,006,987 1,995,423 1,995,423 -156,126 -30,541 -78.24 2011 2011 2011 0.00 0 0 0 0 0 € inthousands 2,006,987 1,995,423 1,995,423 . -72,903 -30,541 -36.54 6,412 2010 2010 2010 Total 3.20 332 280 55 -3 FINANCIAL REPORT ANNUAL REPORT 2011 211 134 2010 44,926 81,699 -37,627 -14,542 102,749 177,339 € in thousands
0 0 2011 1,856 8,000 42,296 thousand 177,339 -144,899 €42,296 €11,216 thousand €28,771 thousand
€2,309 thousand structure: total issue includes 26,500 includes issue total structure:
bonds are secured with 23,924 shares T Bonds Denomination Interest P Collateral: 2013 2014 2015 nominal, issued in non-materialised form entered in the central registry at KDD d.d. Ljubljana. Stock Exchange under the designation SA02. denominations at €1,000.00 each. arrears. in months six payment for due fall interests value of the principal falls entirely due in a single amount upon maturity of bonds at 09/12/2014. of Gorenjska Banka d.d. The book value of the pledged shares amounted to €14,068 thousand. T
ype of bond: ordinary bond nominated in Euro, listing: in the bonds market of the Ljubljana rate: amounts to ayment 7.20 % p.a. of and is principal fixed; and maturity date: nominal
Other long-term financial liabilities in the amount €8,000 thousand of represented the obtained loan from a company in Slovenia, with which negotiations about selling one of the financial investments of Sava d.d. are in progress. The interest rate for the loan amounts to 5.60%. The obtained loan is insured with a stake of Sava in the same financial investment. • • • • • • Other long-term financial liabilities • • • otal Additional explanations in connection with the issue of bonds: The maturity of long-term financial liabilities is as fol- lows: - - - - Balance at 31/12 Balance at 01/01 part from short-term Transfer Exchange rate gains/losses Repayment of loans part under short-term Transfer Hiring new loans 2.4.14. Long-term liabilities 2.4.14. tic and foreign banks. The interest to 3.25% + EURIBOR rate 6-month a was loans long-term for granted 4.50%. The obtained loans are insured. aris paid were thousand €15 additional procedure sue ing from the submitted binding bids. Long-term liabilities originating from bonds amounted to €26,515 thousand. Total nominal value of issued bonds amounted to €26,500 thousand, during the is Long-term liabilities originating from bonds Long-term loans in total amount of €7,756 thousand were mainly nominated in Euro and hired with domes Long-term financial liabilities to banks Long-term financial liabilities to Group companies Long-term financial liabilities to Group were companies Group to liabilities financial Long-term due to managing financial sources in the Sava Group and amounted to €25 thousand. Loans were not in sured, the interest rate for these loans was 12-month EURIBOR + 1.05%. Movement of long-term financial liabilities Movement of long-term financial liabilities The explanation about the value of assets of Sava d.d., d.d., Sava of assets of value the about explanation The placed as a collateral for granted long- and short-term in chapter 2.5.2. loans are explained At 31/12/2011 the company stated long-term liabilities of €43,990 thousand, which had an 11% share in the structure of financing sources. In comparison with the end of the previous they year, were 76% lower due to liabilities. loans under short-term transferring the hired 212 ANNUAL REPORT 2011 FINANCIAL REPORT a transfer of loans from long-term loans. Short-term loans. long-term from loans of transfer a to due higher significantly were thousand €242,892 of amount the in banks to liabilities financial Short-term 6.00%. to 1.25% from amounted companies Group Sava from granted loans short-term for rate interest The secured. not are and yet matured not have Liabilities panies. com Group Sava in sources financial of management the to due were thousand €12,362 of companies amount the Group in to liabilities financial Short-term Short-term financialliabilities loans areexplainedinchapter2.5.2. short-term and long- granted the for collateral as put The explanation about the value of assets of Sava d.d., ties structure they had a 67% share. werehigher92%previousthethanin year, liabilithein Short-term liabilities in the amount of €276,827 thousand 2.4.15. Short-term liabilities Movement ofdeferredtaxliability thousand €1,694 of amount the in liability tax Deferred Deferred taxliability Loans obtainedoutoftheGroupateitherfixedorvariableinterestrate Maturity ofnon-currentloanobtainedouttheGroup Balance at31/12 Increase inliabilitiesduetorevaluationofsecuritiesfairvalue-othercomprehensiveincome Balance at01/01 Total From 2to5years From 1to2years Decrease inliabilitiesduetosaleofsecurities-othercomprehensiveincome Decrease inliabilitiesduetorevaluationofsecuritiesfairvalue-othercomprehensiveincome Total Current loans Non-current loans Fixed interestrate - - Invest d.d.,totalling€121thousand. Maksima to liabilities and thousand, €709 of amount the in dividends unpaid for liabilities thousand, €4,951 ties from hedging against interest rate in the amount of liabili included: liabilities financial short-term other of rest The insured. is and yet matured not has loan the 6.30%, to amounted loan obtained the for rate interest sand and other liabilities totalling €5,781 thousand. The Pokojninska Družba d.d. in the amount of €6,000 thou €11,781 thousandreferred to the loan obtained from A of amount the in liabilities financial short-term Other to banksareinsuredandpartlymatured. liabilities financial Short-term 4.50%. to +3.25% BOR EURI- six-month and , 4.90% to 3.75% + EURIBOR the interest rate being from 5.50% to 6.30 and 3-month abroad, and Slovenia in banks with hired were loans vestments atfairvalue. in financial evaluating with connection in formed was 89,400 81,400 8,000 Variable interestrate 31/12/2011 175,368 167,612 15,756 11,216 4,540 7,756 1,694 2,353 2011 -464 -607 412 € inthousands € inthousands € inthousnds 31/12/2010 146,136 264,768 140,264 249,012 15,756 -4,274 2,353 4,700 5,872 2,153 2010 Total -226 - - - FINANCIAL REPORT ANNUAL REPORT 2011 213 -
2010 3,761 4,966 8,727 € in thousnds 2011 3,662 1,849 5,511 and services
2.4.20. Costs of merchandise, materials 2.4.20. Costs of merchandise, merchandise, of costs structure, costs operating the In materials and services had a 50% share. They totalled €4,695 thousand and compared to the same period last year, when they totalled €5,664 thousand, were 17% lower. they Non-regulated loans Non-regulated At 31/12/2011, the amount of outstanding instalments totalled €12,000 thousand. for non-regulated loans . accrued expenses in relation to the reorganisation of ac other and loans on interest deferred and d.d., Sava crued cost. providing other services. On account of increases in capital of the subsidiaries net sales revenues in 2011 last year. were 37% lower than in the same period Slovenia. in generated mainly were revenues sales Net
-
rating revenues from revaluation) rating revenues from revaluation) deferred revenues deferred revenues Net sales revenues from services Net sales revenues from rents net sales revenues Total
2.4.19. Costs by functional group cost operating in the Total amount of €9,485 thousand overheads. to referred 2010) in thousand (€10,646 Other operating revenues with operating from revaluation totalling €21 revenues thousand (€1,588 thou 2.4.18. Other operating revenues (with ope- 2.4.18. Other operating revenues sand in 2010) appeared in connection with closing civil closing with connection in appeared 2010) in sand proceedings. 2.4.17. Net sales revenues 2.4.17. Net sales revenues 81% of net sales revenues of Sava d.d. which totalled presented 2010) in thousand (€8,727 thousand €5,511 sales within inter-company the Sava Group. Sales rev- and estate real out leasing from generated were enues Short-term Short-term accrued costs and deferred revenues in the amount of €1,235 thousand mainly represented 2.4.16. Short-term accrued costs and accrued 2.4.16. Short-term Short-term Short-term operating liabilities in the amount of €9,792 thousand mainly referred to liabilities to the sellers of for liabilities to and contract, option call from securities referring to December 2011. interest for bank loans Short-term operating liabilities operating Short-term 214 ANNUAL REPORT 2011 FINANCIAL REPORT riod of 2010 when they amounted of to €30,192 thousand. amount the in €14,593 thousand were 52% lower than sharesin the same pe from revenues Financial 2.4.24. Financialrevenues fromshares hous estate, real urban for contributions paid penses, ex court to referred mainly 2010) thousand in thousand (€345 €486 totalling expenses operating Other 2.4.23. Otheroperatingexpenses included: revaluation from expenses operating and Amortisation erty. prop real through subsidiaries the of capital in crease in- performed the to due lower is amortisation counted ac The year. last period same the in than lower 62% were thousand) €2,141 (2010: thousand write-offs €822 totalled expenses, depreciation and Amortisation 2.4.22. Amortisation,depreciation statements wereshownascostsofservice. financial the in which contracts, work management the of basis the on payments received members Board Management former The members. Board agement Man new the of employment the to due mainly was costs year’s last on in increase 40% A structure. costs operating the in share 37% a had 2010) in thousand Labour costs in the amount of €3,482 thousand (€2,496 2.4.21. Labourcosts Costs ofmerchandise,materialsandservicesbytypecost TOTAL Cost ofotherservices Cost offairs,advertisingandofficeallowances Cost ofintellectualservicesprovidedbylegalentitiesandnaturalpersons Cost ofpaymenttransactions,bankservicesandinsurancepremiums Cost refundstoemployees Cost ofrentals Cost ofmaintenanceservices Cost oftransportationservices Cost ofmaterial expensesandwrite-offs
------55.90 in2011(59,612010). to amounted man-hour of basis the on employees of number average the 31/12/2010), at (59 associates 61 employed d.d. Sava company the 31/12/2011 At sand. thou €21 of amount the in insurance pension ditional Labour costs include the accounted premiums for ad tingencies. con- other and benefits jubilee amounts, retirement for ing and compensation fund, and the formed provisions sale ofthesubsidiarySava Schäfer d.o.o.,Kranj. totalling €988 thousand were the profit generated in the companies Group in shares from revenues Financial Financial revenues from shares in Group companies • • • • •
sand; sand; of operatingreceivables)-€52thousand. fixed assets)–€4thousand. Operating Operating Depreciation Depreciation Depreciation ofintangibleassets–€21thousand;
expenses from revaluation (impairment revaluation from expenses xess rm eauto (rt-f in (write-off revaluation from expenses of tangible fixed assets – €453 thou €453 – assets fixed tangible of of investment property – €292 thou €292 – property investment of 4,695 1,375 1,396 2011 455 228 302 552 124 242 21 € inthousands 5,664 1,539 1,240 2010 605 871 321 620 115 328 25 - - - - FINANCIAL REPORT ANNUAL REPORT 2011 215 - - - - - of long-term securities available for of a loan granted to an associated of long-term securities acc. to the call of investments and loans in the subsi Impairment Impairment Impairment Impairment Loss sale in the amount of €26,396 thousand. company in the amount of €6,687 thousand. option totalling €2,579 thousand. lable for sale in the amount of €1,669 thousand. lable for sale in the amount of €1,669 thousand. diaries in the amount of €10,190 thousand.
made in the sale of long-term securities avai
• • • • • Financial revenues from shares in other companies companies other in shares from revenues Financial compa other in shares from revenues financial of 92% nies shown in the amount of €2,552 thousand referred to the revenues from the sale of securities available for sale, while 8% of them referred to the dividends - re companies. ceived from other for the issued bonds, 25% or €6,361 thousand were financial expenses in connection with swaps. The remaining interest 6% of financial rate expenses from financial liabilities or €1,471 thousand were interest on loans obtained from Group companies and interests from loans obtained from other companies. thousand €4,639 of financial expenses referred to the associ ated companies. guarantees, interest rate swaps, and foreign exchange foreign and swaps, rate interest guarantees, gains. In 2010, financial revenues from granted loans amounted to €3,946 thousand. In total financial revenues from granted loans, €1,581 thousand were generated in relation with the associ ated companies (€698 thousand in 2010). ------
of investments in the associated com liabilities impairments and write-off of financial investments receivables loans Impairment panies in the amount of €112,242 thousand.
61% or €15,271 thousand of financial expenses were bank interests, 8% or €1,908 thousand were interest ly due to a higher average deposit interest rate , and partly due to expenses in connection with a derivative financial instrument – interest rate swaps. Financial revenues from financial amount of €25,011 thousand were 38% higher than liabilities in in the the same period last year (€18,181 thousand), main 2.4.28. Financial expenses from financial • Financial expenses from impairments and write-offs of financial investments in the amount of €159,763 thou
2.4.27. Financial expenses from 2.4.27. Financial expenses from They mainly referred to the following financial invest Financial revenues from operating receivables in the amount of €17 thousand (2010: €12 thousand) were interest charged to customers. 2010 of period same the in than higher 68% were sand when they amounted to €95,162 thousand. ments: 2.4.26. Financial revenues from operating 2.4.26. Financial revenues from Financial revenues from loans granted to Group com 2.4.25. Financial revenues from granted 2.4.25. Financial Financial revenues from shares in associates in the amount of €11,053 thousand were the dividends re Financial revenues from shares in associates revenues from shares Financial ceived from subsidiaries Gorenjska Banka d.d. and Abanka Vipa d.d. panies in the amount of €728 thousand and financial revenues from loans granted to other entities in amount the of €1,917 thousand were 33% lower than in the same pariod of 2010 and mainly referred to inter est from granted loans, compensations for the issued 216 ANNUAL REPORT 2011 FINANCIAL REPORT 2.4.29. Otherrevenuesandotherexpenses Comparison oftheactualandcomputedtaxrate liefs sinceataxlosswasshown. re- tax utilise not did d.d. Sava, company the 2011, In Income Tax Corporate Act. the with accordance in deductible not es expens other and provisions of formation receivables, of revaluation investments, financial long-term of ation Expenses which are not tax deductible included revalu for 2011. income on tax for charged liabilities no had d.d. Sava 2.4.30. Incometax sum. insurance an of payment and supplier a to liabilities of cancellation securities, of sale non-realised the in rity secu received represented mainly 2010) in thousand (€207 thousand €806 of amount the in revenues Other - remaining,tobeutilisedinthefollowingyears - applied,havingeffectontaxliabilitydecrease Tax benefits changes inaccountingpolicy Changed taxbaseduetotransitionnewaccountingmethodresulting from (e.g.amountofrevenuesforwhichtaxwasalreadydeducted) -possibleotheramountsimpactingtaxratedecrease -amountfromexpenseincreasetoleveloftax-deductible expenses -amountfromrevenuedecreasetoleveloftax-deductible revenues Amounts havingpositiveeffectontaxbase Effect ofincreaseintaxrateonspecialprofits -possibleotheramountshavingimpactontaxrateincrease -amountofexpenseforwhichtaxwasdeducted -amountfromexpensedecreasetoleveloftax-deductible expenses -amountfromrevenueincreasetoleveloftax-deductible revenues Amounts havinganegativeimpactontaxbase Effect bytaxratesinothercountries Tax onprofitapplyingtheofficialrate Pre-tax profit TAX ASSESSED FORTHECURRENTYEAR TAX ASSESSED Adjustments forpreviousyears - originatingfromthe current year -remainingforutilisation inthe following years - applied,havingeffectontaxliabilitydecrease Tax reliefs TAX INTHEINCOMESTATEMENT Increase/decrease ofdeferredtax
- - - losses werenotaccountedfor. long-term financial investments. Deferred tax from tax of impairments from tax thousand deferred represented €14,551 mainly of amount the in taxes Deferred utilised othertaxreliefs. not of thousand €36 and thousand €71,646 totalling loss tax unused the showed d.d. Sava 31/12/2011 At sand in2010). thou (€47 thousand €4 to amounted expenses Other Rate 0.0% 8.5% 20% 2011 Amount -170,677 156,079 157,161 -34,135 -14,551 -14,551 11,727 17,663 31,182 5,936 603 479 11 0 0 3 0 0 0 0 0 0 Rate 0.0% 8.1% 20% 2010 € inthousands Amount -15,873 -79,364 29,634 31,421 78,517 79,996 30,887 -6,461 -6,461 1,787 1,479 99 26 0 0 0 0 0 0 0 0 0 - FINANCIAL REPORT ANNUAL REPORT 2011 217 - 90 54 19 35 28 72 82 48 85 Net Net 104 9,035 Index 9,089 23,271 23,371 2011/2010 € in thousands € in thousands € in thousands 7.0% 1.7% 5.8% 4.5% 80.9% 0 0 0 0 100.0% Structure 2,353 1,694 2,353 1,694 31/12/20101 Liabilities Liabilities 6,452 26,022 21,497 16,717 298,514 369,202 31/12/2010 19 35 28 72 11,388 24,965 11,442 25,065 2.1% 4.4% 5.6% 2.5% 85.3% Receivables Receivables 100.0% Structure Interest rate swaps totalling €14,000 thousand repre sented a contracting value of the insurance for a long- term credit portfolio. The contracts with option of purchase totalling €6,719 thousand referred to other shares and stakes. The pledge of securities in the amount of thousand - a detailed explanation under 2.5.2. €269,181 31/12/2011 -
es 6,719 8,005 14,000 17,704 269,181 315,609 31/12/2011 ling €8,005 thousand included the book the included thousand €8,005 ling Other disclosures Contingent liabilities and mortgages for deferred taxes for deferred
TOTAL Pledging securities Contracts with a possibility of purchasing Operating receivables Provisions TOTAL Operating receivables Provisions TOTAL Interest rate swaps 31/12/2010 Financial investments 31/12/2011 Financial investments Issued guarantees Mortgages
2.4.31. Survey of receivables and liabilities and liabilities Survey of receivables 2.4.31. Overview of contingent liabilities and mortgages structure 97% of approved warranties and guarantees totalling €17,704 thousand referred to loans received by the subsidised companies in the Sava Group, other war value of fixed assets and investment property pledged for the loan obtained from Pokojninska Družba A d.d., and the syndicated loan. ranties and guarantees were due to the compani outside of the Group. Mortgages total Mortgages 2.5.1. 2.5. 2.4.32. Shares in profit shares any approve not did Meeting Shareholders’ The in the profit to those who are not shareholders. Receivables and liabilities for deferred tax for 2010 Receivables and Receivables and liabilities for deferred tax for 2011 Receivables and
218 ANNUAL REPORT 2011 FINANCIAL REPORT Pledged assetsofSavaTurizem d.d,Bledfortheloansobtained bySavad.d. Pledged assetsofSavatechd.o.o.fortheloansobtainedbySavad.d. resented 67.6% of balance sheet total of Sava d.d., the obtained the loans for in total amount of €277,186 thousand, assets which rep own its pledged d.d. Sava Breakdown offinancialliabilitiesSavad.d.fromtheloansobtainedoutGroup pledged of value total The thousand. €290,024 ing total Group Sava the of out loans obtained liabilities the from financial showed d.d. Sava 31/12/2011 At 2.5.2. Breakdown ofpledgedassetsSavad.d.bytype ofassetsfortheloansobtainedbySavad.d.
- tootherpartners - fromissuanceofbonds TOTAL - tootherbanks - toassociatedbanks(GB,AB) TOTAL VALUE OFPLEDGEDREALESTATE - familyhotelSavicawithbelongingland Mortgages onrealestateownedbySavaTurizem, d.d. Type ofassets TOTAL VALUE OFPLEDGEDREALESTATE - Laborepremises Mortgages onrealestateownedbySavatechd.o.o. Type ofassets Type of financialliability Percentage ofpledgedassetsinthebalancesheettotal BALANCE SHEETTOTAL OFSAVA d.d.AT 31/12/2011 TOTAL PLEDGEDVALUE OFSAVA OFASSETS d.d. - pledgedrealestateownedbySavad.d. - pledgedstakesincompaniesownedbySavad.d. - pledgedsharesofcompaniesownedbySavad.d. Pledged assets: Type ofassets
company Savad.d.at31/12/2011 long- andshort Pledge ofassestfortheobtained -term loansofthe financial liabilities
Long-term - -
42,271 26,515 8,000 7,756 amount of€5,096thousand. the in Turizemd.d. Sava of assets the and thousand, €34,651 of amount total in d.o.o. Savatech of assets €316,933 thousand. assets for the obtained loans of Sava d.d. amounted to 0
financial liabilities Short-term 247,753 158,555 11,000 78,198 0
Book valueofpledge Book valueofpledge Book valueofpledge financial liabilities € inthousands € inthousands € inthousands € inthousands
290,024 410,038 277,186 166,311 136,313 132,868 34,651 19,000 26,515 78,198 34,651 67.6% 5,096 5,096 8,005 Total
FINANCIAL REPORT ANNUAL REPORT 2011 219
80 115 594 Book 5,081 1,691 6,314 1,674 1,239 8,005 13,276 17,090 10,500 33,758 56,608 34,317 25,124 47,194 22,531 value of pledge - 000 EUR 000 EUR 136,313 132,868 of pledge - Book value 0 0 0 0 0 0 € in thousands - 2,239 shares 71,850 0.0% 0.0% 0.0% 0.0% 0.0% age of age of 631,221 49.0% Number of Percent unpledged Book value of pledge ownership unpledged - 0 0 0 0 0 0 0 0 - - 5,688 0% 0% 0% 0% 0% 0% liabilities of shares for aries and other subsidiaries loans of subsidi Pledged number Pledged number age of owner ship for loans of
Pledged percent
- 1,504 4,987 9,874 shares 74,572 13,500 Pledged for loans 837,000 number of 51.0% 1,715,841 of Sava d.d. 100.0% 100.0% 100.0% 100.0% 100.0% 37,498,152 11,467,652 for loans of Sava d.d. age of ownership Pledged percent 1,504 4,987 shares
13,500 12,113 Available Available 152,110 number of 1,715,841 1,468,221 37,498,152 11,467,652 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Available Available percentage of ownership m of land Labore Kranj, store BTC Ljubljana m of land Labore Kranj, store BTC
TOTAL VALUE OF PLEDGED OWNERSHIP STAKES VALUE TOTAL - Sava IP, d.o.o. - Sava IP, - Terme Ptuj d.o.o.* - Terme - Terme Lendava d.o.o.* - Terme - Zdravilišče Radenci d.o.o.* - Terme 3000 d.o.o.* 3000 Terme - TOTAL VALUE OF PLEDGED REAL ESTATE VALUE TOTAL Type of assets Type Pledged ownership stakes: - Savatech d.o.o. Type of assets Type - shares of NFD 1, Delniški Investicijski Sklad, d.d. -1N d.d. Sklad, Investicijski Delniški 1, NFD of shares - Type of assets Type Pledged shares - ABKN - shares of Abanka Vipa - 2,587 sq Mortgages on real estate Restaurant Panorama - Grand Hotel Toplice, - shares of Gorenjska Banka d.d. - GBKR - shares of Gorenjska - shares of Sava Hoteli Bled d.d. - SHBR - shares of Sava Hoteli - shares of Hoteli Bernardin d.d. - HBPN - shares of Hoteli Bernardin Hoteli Bled, d.d. - KHIR - shares of Kompas - shares of Nova Ljubljanska Banka, d.d. - NLB - shares of Nova Ljubljanska Banka, d.d. - shares of Pokojninska Družba A, d.d. - PDAR - shares of Pokojninska - shares of Jubmes Banka, a.d. - JBMN TOTAL VALUE OF PLEDGED SHARES VALUE TOTAL * In spite of the merger, the stakes in Tourism companies are shown separately. the stakes in Tourism * In spite of the merger, Mortgages on real estate owned by Sava d.d. Breakdown by type of pledged shares Breakdown by type of pledged shares by type of pledged Breakdown 220 ANNUAL REPORT 2011 FINANCIAL REPORT Interest riskmanagementinSavad.d.usingthefinancialinstrument Table offoreigncurrencyrisk currencyrisk Foreign 2.5.3. s dfeec bten eevbe ad liabilities and receivables between difference a as swaps rate interest of value net the 2011, December of end the At million. €14 of value nominal total a with risk interest against hedge to concluded instrument financial derived one has d.d. Sava EURIBOR, rate interest reference the in change anticipated the from In accordance with hedging against interest risk arising Interest raterisk Net exposure Insured bankloans Trade receivables Liabilities 31/12/2010 TOTAL Liabilities 31/12/2011 Loans fromGroupcompanies TOTAL Assets Interest rateswaps Assets Interest rateswaps Loans fromassociatedcompanies Bonds Other financialliabilities Trade payablesand otherliabilities Gross exposureofbalancesheet Estimated forecastsales Estimated forecastpurchasing Gross exposure
Financial instruments-financialrisks Carrying Carrying -307,842 -171,190 -313,583 amount amount -12,387 -79,459 -26,515 -14,830 -9,792 -4,823 -1,087 -4,951 2,644 3,097 5,741 Total 589 -972 in € 115 128
-307,842 -171,190 -313,583 -12,387 -79,459 -26,515 -14,830 -9,792 2,644 3,097 5,741 589 Contracted Contracted cash flows cash flows € 31/12/2011 -1,202 -5,079 -1,087 -4,951 -115 -128 USD 0 0 0 0 0 0 0 0 0 0 0 0
CHF 6 months 6 months to 6.1%at31/12/2011. amounted loans hired the for rate interest average The cial instrument, 4.6% of all obtained loans are hedged. finan a Using statement. income the in included was sand (negative €972 thousand at the end of 2010) and thou €4,823 negative the to amounted thereof arising 0 0 0 0 0 0 0 0 0 0 0 0 or less or less currencies -292 -782 -177 -115 -654 -128 Other
0 0 0 0 0 0 0 0 0 0 0 0
months months -302,774 -172,988 -316,830 6 -12 6 -12 -29,050 -77,860 -26,515 14,056 -6,787 -7,273 -450 -450 3,643 5,244 8,812 Total in€ 0 0 0 0 -302,667 -172,988 -316,723 -29,050 -77,860 -26,515 -2,200 14,056 -2,200 -6,686 -7,267 years years 3,643 5,244 8,812 1 -2 1 -2 -455 -455 31/12/2010 € 0 0 USD -1,647 -1,647 0 0 0 0 0 0 0 0 0 0 0 0 years years -455 2 -5 2 -5 -455 -101 -101 -101 €inthousands €inthousands €inthousands 0 0 CHF 0 0 0 0 0 0 0 0 0 more than more than currencies 5 years 5 years Other -6 -6 -6 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
- - FINANCIAL REPORT ANNUAL REPORT 2011 221 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5 years 5 years more than more than 0 0 0 0 0 0 € in thousands € in thousands -26 -27 -455 -455 2 - 5 2 - 5 years years -4,791 -6,220 -1,647 -1,647 -33,105 -36,442 -28,288 -30,196 -36,897 -34,752 0 0 0 -1 -455 -455 1 - 2 1 - 2 years years -3,562 -1,908 -4,575 -8,016 -2,200 -2,200 -1,913 -6,371 -13,487 -93,061 -48,740 -15,687 -155,115 -154,660 0 0 -30 -20 -962 -450 -450 -962 -191 6 - 12 6 - 12 -7,772 -2,668 -6,412 -56,239 -80,040 -40,308 -12,090 -56,239 months months -250,927 -155,711 -251,377 -951 -177 -415 -654 -654 -946 -974 -177 -4,933 -9,762 -1,597 -7,253 or less or less -34,970 -17,312 -47,382 -22,435 -23,112 -35,624 -102,101 -102,278 6 months 6 months -9,792 -4,951 -4,951 -7,273 -1,087 -7,536 -1,087 -12,732 -81,637 -32,109 -14,843 -29,704 -83,942 -34,017 -332,489 -181,377 -337,440 -349,442 -186,971 -350,529 cash flows Contracted cash flows Contracted 9,792 4,951 4,951 12,387 79,459 26,515 14,830 7,273 1,087 6,787 1,087 amount 314,172 171,190 29,050 77,860 26,515 319,123 Carrying amount 320,473 172,988 321,560 Carrying
Non-derived financial Non-derived financial liabilities Non-derived financial liabilities Insured bank loans Loans from Group companies Insured bank loans (without associated companies) (without associated Trade payables and other Trade Borrowings from associated companies Bonds liabilities Loans from Group companies payables and other Trade liabilities Borrowings from associated companies TOTAL 31/12/2010 31/12/2011 Other financial liabilities Bonds Interest rate swaps for hedging from risk Derived financial liabilities Interest rate swaps for hedging from risk TOTAL Other financial liabilities Derived financial liabilities Solvency risk Solvency Table of solvency risk of Table 222 ANNUAL REPORT 2011 FINANCIAL REPORT • Euro the in rate interest reference the 2012, For Zone. situa economic the with associated ly strong be will rate interest future the of fluctuation The • Sensitivity analysistofinancialrisks Maturity oftradereceivables Balance andmovementofvalueadjustmentsintradereceivables Trade receivablesbygeographicregion Credit risk 3-month EURIBOR Balance at31/12 Decrease ofvalueadjustment Increase ofvalueadjustment Balance at01/01 TOTAL Past due more than one Not pastdue Slovenia Past due31-120days Past due0-30days TOTAL Other
Sensitivity Sensitivity analysistoachangeininterestrate increase by €610 thousand. would 2011 of end the at valid rateinterest ighted €10 million, the interest expenses at the average we eventthat Sava d.d. contracts anadditional debt of long-term financial liabilities of €303.7 million. In the short-termand had d.d. Sava 2011, of end the At terest rateincreasedby0.35percentagepoint. rate In 3-month 2011, EURIBOR. the reference in interest reference the to tied loans greatest hired of the share had d.d. Sava 2011, of end the At nlss o nrae indebtedness increased to analysis year 31/12/2011 1.36 % Gross receivable
31/12/2010 1,017 421 531 tion in the Euro the in tion 33 32 1.01 % 31/12/2011 Impairment Highest 1.62 % 428 417 value 10 1 0 - - -
Net receivable est expensewouldchangeby€1,518thousand. indebtedness of Sava d.d. at the end of 2011, the inter the consideration into taking and points, basis 50 by folio still remains high. If the interest rate would change a of case the port credit the in of sensitivity the rate, interest changed but rise, to expected not is Zone •
Lowest the valueofforeigncurrencies. company is not strongly exposed to the changes in the reason, currency.this Fordomestic the to tied is assets of part major the and settled, mutually outflows and inflows of majority a has d.d. Sava 1.00 % Sensitivity analysistoachangeinthevalueof foreign currencies value 589 531 23 31 4 Gross receivable 1.39 % Mean value 4,430 1,180 2,560 372 318 Daily standard 31/12/2011 31/12/2010 Impairment Carrying amount deviation 2011 0.68 % -399 428 787 589 584 40 787 746 5 40 1 0 € inthousands € inthousands € inthousands Net receivable 31/12/2010 of variation Coefficient 48.6 % 3,643 3,643 2,560 2,681 2010 787 704 434 332 317 962 -15 98
- - FINANCIAL REPORT ANNUAL REPORT 2011 223 - - 2 0 0 143 6,507 7,273 31,371 67,028 70,683 26,739 31,371 Level 3 150,786 136,948 Fair value Fair € in thousands € in thousands 115 2,574 1,602 -1,087 Level 2 2 143 0 0 31/12/2010 6,507 7,273 67,028 70,683 26,515 31/12/2010 150,824 136,948 33,083 33,083 Level 1 Book value 115 Total 0 -1,087 67,028 66,056 63 1,582 9,792 0 0 15,879 41,130 22,686 25,982 267,133 Fair value Fair 11,847 11,847 Level 3 Level 2: assets or liabilities, which are not ranked indirectly or directly defined is value their 1; level at on the basis of the market data. Level 3: assets or liabilities whose value cannot be obtained from the market data. 128 0
63
-4,951 25,124 20,301 Level 2 • • Issued bonds us- by ascertained was bonds issued of value fair The ing the stock exchange price achieved in the bonds Stock Exchange. listing in the Ljubljana liabilities receivables and Short-term For receivables and liabilities with a remaining life of the notional less value than is one deemed year, to re flect the fair value. whereby the effective interest rate equals the contract ing interest rate, which is variable. ing interest rate, which 31/12/2011 1,582 9,792 15,781 41,130 22,686 26,515 267,035 0 0 Book value 31/12/2011 4,159 4,159 Level 1 128 Total -4,951 41,130 36,307 Hierarchy of fair values Estimating fair values fair values Estimating
assets or liabilities at stock exchange price exchange stock at liabilities or assets 1: Level on the last day of accounting period.
Derived financial instruments - assets Long-term receivables receivables Short-term Cash and cash equivalents Long-term loans loans Short-term Securities available for sale Approved loans Issued bonds operating liabilities Short-term Securities available for sale Derived financial instruments - liabilities Total Hierarchy of financial instruments considering computation of their fair value Hierarchy of financial instruments considering computation of their • 2.5.5. Financial instruments valued at fair value are ranked in three levels: Fair values of financial instruments The fair value is estimated as a discounted value of the expected cash flow from principal and interest, Interest-bearing loans and borrowings loans and Interest-bearing The fair value of shares and stakes of unlisted com- panies is estimated on the basis of cost value any impairments less based on examining the evidence of impairment. Securities available for sale Securities The fair value of securities available for sale that are price market bid standard announced the equals listed date. at the balance sheet 2.5.4. 224 ANNUAL REPORT 2011 FINANCIAL REPORT ne te ae odtos s ai i a ordinary an in valid as conditions same performed the under are parties related among Transactions • • • Other transactionswithGorenjskaBankad.d. Transactions withGorenjskaBanka d.d.–obtainedloansanddeposits Ownership oftheSavashare • • iaries relateto: subsid its and d.d. Sava between relations Business Relations amongcompaniesintheSavaGroup Board members andtheircloserfamilymembers. Management members, Board Supervisory associates, and subsidiaries include parties Related 2.5.7. 2.5.6.
Balance ofreceivedloansat31/12 Repayment ofloans Hiring newloans Balance ofreceivedloansat01/01 No. ofSavad.d.sharesownedbyGorenjskaBanka Ownership stakeofGorenjskaBankad.d.inSava cost ofliving CAPITAL -calculationfor
dig uies ih oejk Bna .. in d.d. Banka Gorenjska with business doing from liabilities short-termoperating of balance operating receivables due from Gorenjska Ban ka d.d.at31/12/2011(nonein2010). ge. mutd o 47 huad €7 tosn in 2010). thousand (€472 thousand €497 to amounted 31/12/2011 at d.d. Banka Gorenjska to interest interest-bearing borrowingsandloans. knowled of centres competence the by provided services and name, brand of use equipment, and 2011, financial revenues from operating receiva- operating from revenues financial 2011, Financial Provided In The No
Related parties of living Converting capitalbymeans operations in connection with managing with connection in operations services, which include rent of property of rent include which services,
230,603 Capital
% growth 2.00% - - - the FinancialStatementsofSavaGroup. sidiaries for the year 2011 are disclosed in the Notes to sub of profit net and income operating 31/12/2011, at subsidiaries of capital The transaction. length arm’s GORENJSKA BANKA d.d.,Kranj companies ofSavad.d. associated the are d.d. Invest Maksima and d.d., ing Hold NFD d.d., Vipa Abanka d.d., Banka Gorenjska Relations withassociatedcompanies • fective forothercompanieswithasimilarrating. ef those equal transactions these for conditions and Sava d.d. raises loans with Gorenjska Banka d.d. Terms
dig uies ih oejk Bna .. in d.d. Banka Gorenjska with business doing of €8thousand(€11in2010). amount the in transactions payment for fees from expenses Financial 2010). in thousand (€12 sand thou €63 of amount the in generated were bles sand in2010). thou (€1,412 thousand €2,029 of amount the in expenses Interest 2010). in thousand (€5 nerated ge were deposits from revenues interest no 2011, In Calculated effect 4,612 Net profitforthefinancialyear 31/12/2011 33,038 31,779 56,475 -1,361 2.81% 2,620 2011 less calculationeffect € inthousands € inthousands 31/12/2010 -160,738 -21,641 31,779 20,280 33,140 56,475 2.81% 2010 ------FINANCIAL REPORT ANNUAL REPORT 2011 225 - 0 0 0 0 0 2010 2010 99,497 46,081 36,300 -89,716 € in thousands € in thousands 0 225 121 -105 2011 2011 2,276 56,111 46,300 46,081 -55,892 banka Vipa d.d. in 2011, In financial revenues from loans were generated in the amount of €1 thousand (none in 2010), while interest expenses amounted to €2,604 thousand (€2,102 thousand in 2010). doing business with A
At 31/12/2011, the balance of the receivable due from NFD Holding d.d. amounted to (€24,374 €22,374 thousand thousand at 31/12/2010). operating receivables At from the accounted 31/12/2011, interest on loans amounted to €899 thousand (€440 thousand in thousand €1,579 to amounted revenues Interest 2010). oper from revenues financial 2010), in thousand (€233 • NFD HOLDING d.d., Ljubljana ating receivables amounted to €49 thousand in 2011 At 31/12/2011 Abanka Vipa possessed bonds issued of €9,281 thousand by Sava in the amount - - - - - receivables due from Abanka Vipa d.d. The In Operating t of €1 thousand at 31/12/2011 at thousand €1 of amount the in shown (none at 31/12/2010). cial revenues from operating receivables were ge nerated in 2011 (none in 2010 too), while financial expenses from provisions for payment transacti ons amounted to €37 thousand (€100 thousand in 2010). terest to Abanka Vipa d.d. at 31/12/2011 amounted 31/12/2011 at d.d. Vipa Abanka to terest 31/12/2010). to €241 thousand (€208 thousand at in from liabilities operating short-term balance doing business with Abanka Vipa d.d., no finan
Balance of received loans at 31/12 Balance of received loans at 31/12 Balance of deposits at 31/12 Balance of received loans at 01/01 Balance of received Repayment of loans Balance of received loans at 01/01 Hiring new loans Hiring new loans Repayment of loans Related natural persons own 551 Sava shares, which represents 0.027% of ownership. In 2011, interest expenses amounted to €1 thousand. Relations with natural persons Transactions with Maksima Invest d.d. – obtained loans: with Maksima Invest d.d. – obtained Transactions MAKSIMA INVEST d.d., Ljubljana • • Other transactions with Abanka Vipa d.d. Other transactions with Abanka Vipa • Transactions with Abanka Vipa d.d.- obtained loans and deposits with Abanka Vipa Transactions Sava d.d. raises loans with Abanka Vipa d.d. Terms and conditions for these transactions equal those ef ABANKA VIPA d.d., Ljubljana VIPA ABANKA with a similar rating. fective for other companies 226 ANNUAL REPORT 2011 FINANCIAL REPORT Remunerations oftheManagementBoardSava d.d. salaries, from income gross included amount stated The 2011. in thousand €419 to amounted 06/06/2011 and 31/03/2011 on office their up took who members Board Management new the of remunerations Gross The 2011. in thousand €895 to amounted 16/07/2011 or 30/03/2011 on office their discontinued who bers mem Board Management the of remuneration Gross Management – persons of group the about Data is shares Sava own disclosed inthebusinesspartofannualreport,chapter-TheSavashareandownershipstructure. who members Board Supervisory and Board Management the of list name The Ownership oftheSavashare Board Chairman oftheBoard Chairman Janez Bohorič, Remunerations oftheformerManagementBoardSavad.d. TOTAL of theBoard Vinko Perčič, Member Member oftheBoard Emil Vizovišek, TOTAL Sava d.dSupervisoryBoardmembers Close familymembersoftheSavad.d.ManagementBoard Sava d.d.BoardofManagementmembers Directors ofsubsidiaries President oftheBoard Matej Narat,MSc, Member oftheBoard Andrej Andoljšek, Member oftheBoard Miha Resman, Member oftheBoard Franci Strajnar, MSc, remunerations management salary salary Gross 380 109 100 contracts 73 99 Gross 225 107 from 57 61
bonuses retirement Gross amounts Gross 0 0 0 0 0 437 142 142 153 rewards compensation Gross 0 0 0 0 0 Gross 103 50 54 Gross travel 0
expense refunds 3.70 1.14 0.49 0.53 1.54 - expense refunds 1.42 Gross 0.80 0.30 0.32 travel
thousand or51%ofgrossremunerations. €212 to amounted remunerations net Their sidiaries. sub- the in performance task from remunerations as well as remunerations other and premiums insurance €482 to amounted remunerations net Their remunerations. tions, remunerations from the insurance sum and other compensa pay, severance contracts, work agement man the to according income gross included amount ance amount
Gross insur insurance thousand, or54%ofgrossremunerations. amount Gross 119 21 38 38 43 6 6 5 6 Number - 31/12/2011 payments Gross other 125 246 180 payments Gross 0 other 10 4 4 2 12
4 3 3 2 0.000% 0.006% 0.012% 0.009% performance in performance remunerations Share in subsidiaries remunerations subsidiaries performance performance from tasks from tasks Gross Gross 0 0 0 0 2 0 0 0 2
Number remunera- 2,563 remunera- 31/12/2010 122 133 72 gross 895 tions 292 291 313 gross Total 419 tions 121 109 108 Total € inthousands € inthousands 80 net remu- 0.004% 0.128% 0.006% 0.007% nerations remuner Share tionsu 482 212 158 156 168 Total Total 40 62 54 55 net -
- - FINANCIAL REPORT ANNUAL REPORT 2011 227 - 2 5 7 8 8 11 15 17 18 17 16 10 22 157 Total
€ in thousands 0.13 0.22 0.00 0.10 0.03 0.09 0.13 0.17 0.07 0.30 0.20 0.07 0.17 1.68 refunds Expense 0 8 4 6 6 6 8 12 12 13 12 12 17 115 Bonus 2 3 1 3 5 2 2 5 2 5 4 3 6 41
fees Attendance
Board and its commissions Data about the group of persons – Supervisory In 2011, the gross remunerations of the Supervisory Board members amounted to €157 amount included thousand. attendance fees, rewards and The travel expense refunds. financial statements of Sava d.d. and the Sava Group for 2011 amounted to €32 thousand. At 31/12/2011 Sava d.d. showed no receivables from un employed associates the from due loans approved der individual work contracts. work contracts. der individual
- - Audit Commission Member Member – employee representative, since 31/03/2011 Member – employee representative, until 30/03/2011 Member – employee representative Member – employee representative Member – shareholder representative Member – shareholder representative Member – shareholder representative, since 05/07/2011 Deputy Chairman of the Supervisory Board until 08/06/2011 Member – shareholder representative, Member – shareholder representative Member – shareholder representative Deputy Chairman of the Supervisory Board, Deputy Chairman of the Supervisory Board, until 08/06/2011 Chairman of the Supervisory Board Disclosing business with auditors
TOTAL Kosta Bizjak Kosta Gregor Rovanšek Miha Resman Boštjan Luznar Janez Justin Aleš Skok Robert Ličen, MSc Stanislav Valant, MSc Stanislav Valant, Tomaž Toplak Tomaž Jože Obersnel Janko Kastelic Marko Pogačnik, MSc Marko Pogačnik, Miran Kalčič ees with individual contracts of employment individual contracts ees with tract value of auditing the individual and consolidated 2.5.8. According to the contract with Deloitte d.o.o., the con 30 employees (at the end of 2010 there were 32 such re- employment of contracts individual with associates) ceived gross remunerations of €1,684 thousand. This sum consisted of gross salaries and other remunera- €17 to amounted refunds expense travel which of tions, thousand. Data about the group of persons – other employ 228 ANNUAL REPORT 2011 FINANCIAL REPORT bank ING, on the results of the procedure for the sale the for procedure the of results the on ING, bank advisor,financial common investment international the the by report the with acquainted became members consortium the 22/12/2011, on held meeting sortium con the In d.d.. Vipa Abanka in stake ownership the of sale joint a for member consortium a was d.d. Sava in investment financial shares ofAbankaVipad.d. selling of Procedure a) events: following the about explanation an give separately We going concernpresumption. the on or 2011, year the for d.d. Sava of statements financial the in stated liabilities and assets of balance the affect not do events these nature, their to Owing report. annual the of part business the in disclosed are date Important events that appeared after the balance sheet 2.5.9.
sheet date Influence byeventsafterthebalance -
adopting thisresolution,whichwas5January2012. of day the on work its discontinued thus De 2010 cember in formed d.d. Vipa Abanka in stake the of sale joint the for consortium The consortium. the suspend and procedure sale joint the discontinue to decision a made members consortium the 2012, for vironment en macro-economic the of estimate the and cedure pro sale joint the on report the on Based repurchase. for offer binding a receiving to lead not did procedure pressed interest by certain potentialinvestors,the sale ING ex the despite that members consortium the informed time. that until d.d. Vipa Abanka in stake the of management. Financial – 10 Chapter reports, annual the of report business the in given is 2011 in area financial the in activities the with connection in explanation detailed A b) FinancialpositionofSavad.d. - - - - FINANCIAL REPORT ANNUAL REPORT 2011 229 - - -
Matej Narat, MSc President of the Management Board The Management Board is responsible for a proper managing of its accounting procedures, establishing, operation and maintaining internal control in relation to the preparation and fair presentation of the finan cial statements, which do not contain misstatements originating any from fraud or material error, and for other and assets secure to measures suitable adopting funds. The Management Board confirms herewith that the financial statements and the notes have been pro duced on the going concern presumption and in ac- Account Slovene and legislation current with cordance ing Standards.
- - - - -
Kranj, 27 March, 2012 Kranj, 27 March, 2012 Franci Strajnar, MSc Strajnar, Franci Member of the Management Board Andrej Andoljšek Member of the Management Board Member of the Management Board Miha Resman Statement of Management`s of Management`s Statement Sava d.d. for responsibilities
The Management Board confirms the financial state The Management Board confirms that when drawing account corresponding the statements financial the up 2.6. ments of Sava d.d. for the year that ended on 31 De cember 2011, which have been prepared in Accounting Standards. dance with Slovene accor ing policies were consistently applied, the accounting of principle the to according elaborated were estimates annual the that and management, good and prudence report gives a true and fair view of the company’s as 2011. sets and business results in the year 230 ANNUAL REPORT 2011 FINANCIAL REPORT ndependent auditor`s report 2.7.
for Savad.d. I
FINANCIAL REPORT ANNUAL REPORT 2011 231 232 ANNUAL REPORT 2011 * Theupdates areaccessibleonthecompany websiteat www.sava.si e-mail: [email protected] Tel: +38642065310,Fax: +3864206 6446 and DirectorofGroup’sDirectorate Milan Marinič,SeniorManagementBoardAssistant www.sava.si e-mail: [email protected] Tel: +38642065210,Fax: +38642066446 Franci Strajnar, MSc,Member www.sava.si e-mail: [email protected] Tel: +38642065215,Fax: +38642066446 Matej Narat,MSc,President Management Board Škofjeloška c.6,4000Kranj Sava d. www.sava.si e-naslov: Tel: +38642065988, Fax: +38642066446 Miha Dolinar, Director CORPORATE FINANCE www.sava.si e-mail: [email protected] Tel: +38642065454,Fax: +38642066446 Antonija Pirc,MSc,Director CORPORATE CONTROLLING www.sava.si e-mail: [email protected] Tel: +38642065616,Fax: +3864206 6446 Tatjana Lozar, Director HR &ORGANISATION DEVELOPMENT www.sava.si e-mail: [email protected] Tel: +38642065819,Fax: +3864206 6446 Lidija Bregar, Director CORPORATE COMMUNICATIONS Professional Services [email protected] www.sava.si. (as at27March2012)* Contact persons in theSavaGroup www.sava.si e-mail: [email protected] Tel: +38642065320,Fax: +38642066446 Andrej Andoljšek,Member www.sava.si e-mail: [email protected] Tel: +38642066068,Fax: +38642066446 Miha Resman,Member /www.sava.si e-mail: [email protected] Tel: +38642065146,Fax: +38642066446 Andrej Jaklič,Director INTERNAL AUDIT www.sava.si e-mail: [email protected] Tel: +38642065210,Fax: +3864206 6446 Franci Strajnar, MSc,Director LEGAL OFFICE www.sava.si e-mail: [email protected] Tel: +38642065601,Fax: +3864206 6446 Mojca Globočnik,Director AND ANALYSIS CORPORATE ACCOUNTING,PLANNING
Contact persons in the Sava Group (as at 27 March 2012 )* Rubber Manufacturing Division with the Foreign Trade Network
SAVATECH d. o. o., Kranj Vesna Čadež, Director Igor Hafnar, Director Tel: +386 4 206 51 79, Fax: +386 4 206 64 60 Tel: +386 4 206 58 56, Fax: +386 4 206 64 60 e-mail: [email protected] e-mail: [email protected] www.savatech.si www.savatech.si
Zdenka Benedičič, Workers’ Director Tel: +386 4 206 58 77, Fax: +386 4 206 64 60 e-mail: [email protected] www.savatech.si
SAVA TRADE GmbH, Munich SAVA TRADE Sp. z o. o., Warsaw
Zlatko Smrdel, Director 2011 REPORT ANNUAL Sławomir Bąbka, Director Tel: +49 89 544 14 30, Fax: +49 89 532 89 51 Tel: +48 22 721 13 61, Fax: +48 22 721 13 62 e-mail: [email protected] e-mail: [email protected] www.sava-trade.de INTRODUCTIONwww.savatrade.com.pl Jaka Toplak, Procurator Tomaž Perčič, Director Tel: +386 4 206 51 14, Fax: +386 4 206 64 60 Tel: +386 4 206 64 71, Fax: +386 4 206 64 00 e-mail: [email protected] e-mail: [email protected] www.savatech.si www.savatech.si SAVA TRADE s. r. o., Prague SAVATECH TRADE Ltd., London Milan Vik, Director Voja Jevtić, Director Tel: +420 22 494 19 66, +420 22 494 25 67 Tel: +386 4 206 62 16, Fax: +386 4 206 64 36 Fax: +420 22 494 25 59 e-mail: [email protected] e-mail: [email protected] www.savatech.si www.savatrade.cz Moscow Representation Office Anja Bitenc Jenko, Procurator Branimir Anđelić, Director Tel: +386 4 206 60 14, Fax: +386 4 206 63 90 Tel: +7 495 775 38 46, Fax: +7 495 981 63 03 e-mail: [email protected] e-mail: [email protected] www.savatech.si www.savatech.ru SAVATECH CORP. Port Orange
David R. Lander, Director SAVAPRO d. o. o., Kranj Tel: +1 386 760 07 06, Fax: +1 386 760 87 54 Borut Flander, Director e-mail: [email protected] Tel: +386 4 206 51 27, Fax: +386 4 206 64 23 www.savatech.com e-mail: [email protected] www.savatech.si Izidor Debenc, Director Tel: +386 4 206 63 85, Fax: +386 4 206 63 90 Denis Šmigoc, Director e-mail: [email protected] Tel./Fax: +7 48 52 382 353 www.savatech.si e-mail: [email protected] www.savatech.si
233 234 ANNUAL REPORT 2011 www.sava-hotels-resorts.com e-mail: [email protected] Tel: +3864 Antonija Pirc,MSc,Director SAVA TMC,d.o.o.,Kranj www.sava-hotels-resorts.com e-mail: [email protected] Tel: +3864 Renata Balažič,Member www.sava-hotels-resorts.com e-mail: [email protected] Tel: +3864 Borut Simonič,MSc,Member www.sava-hotels-resorts.com e-mail: [email protected] Tel: +3864 Andrej Prebil,President SAVA TURIZEMd.d.,Bled Management Board Tourism Division www.savatech.si e-mail: [email protected] Tel./Fax: +74852382353 Denis Šmigoc,Director SAVARUS d.o.o.,Yaroslavl 206 5454, 206 6018, 206 6019, 206 6017, Fax: +3864 Fax: +3864 Fax: +3864 Fax: +3864 206 6446 206 6028 206 6028 206 6028 www.sava-hotels-resorts.com e-mail: [email protected] Tel: +3862 of Terme Lendava, Lendava Igor Magdič,ExecutiveDestinationDirector www.sava-hotels-resorts.com e-mail: [email protected] Tel: +3862 of Terme Ptuj,Ptuj Andrej Klasinc,ExecutiveDestinationDirector www.sava-hotels-resorts.com e-mail: [email protected] Tel: +3862 Lea Hofman,ManagerofPCTerme Banovci,Veržej www.sava-hotels-resorts.com e-mail: [email protected] Tel: +3862 Health ResortRadenci,Radenci Mladen Kučiš, ExecutiveDirectorof www.sava-hotels-resorts.com e-mail: [email protected] Tel: +3862 of Terme 3000,MoravskeToplice Ivanka Ajlec,ExecutiveDestinationDirector www.sava-hotels-resorts.com e-mail: [email protected] Tel: +3864 of SavaHoteliBled,Bled Fedja Pobegajlo, ExecutiveDestinationDirector Executive Directors www.savatech.si e-mail: [email protected] Tel.: +38642065795,Fax: +38642066460 Jože Šmid,Procurator www.sava-rol.hr e-mail: [email protected] Tel: +38513667489,Fax: +38513667722 Darko Vodanović, Director SAVA ROLd.o.o.,Zagreb 577 4440, 749 4510, 513 1400, 520 1000, 512 2300, 579 1714, Fax: +3862 Fax: +3862 Fax: +3862 Fax: +3862 Fax: +3862 Fax: +3864
577 4418 749 4520 587 1703 520 2723 512 5085 579 1601
i
Real Estate Division
SAVA IP d. o. o., Ljubljana SAVA NOVA d. o. o., Zagreb Gorazd Rous, Director Primož Bradeško, Director Tel: +386 1 430 41 50, Fax: +386 1 231 31 70 Tel: +385 1 465 01 29, fax: +385 1 465 01 22 e-mail: [email protected] e-mail: [email protected] www.sava-ip.si www.sava-ip.si
Ana Finc, Procurator Marko Rozman, Procurator Tel: +386 1 430 41 50, Fax: +386 1 231 31 70 Tel: +386 1 300 98 97, Fax: +386 1 231 31 70 e-mail: [email protected] e-mail: [email protected] www.sava-ip.si www.sava-ip.si IP NOVA A d. o. o., Ljubljana Gorazd Rous, Director Tel: +386 1 430 41 50, Fax: +386 1 231 31 70 e-mail: [email protected] www.sava-ip.si
Ana Finc, Procurator
2011 REPORT ANNUAL Tel: +386 1 430 41 50, Fax: +386 1 231 31 70 e-naslov: [email protected] INTRODUCTIONwww.sava-ip.si Other Operations
SAVA MEDICAL IN STORITVE d. o. o., Kranj ENSA BH, d. o. o., Srbac Janez Fabijan, Director Stanko Cvenkel, Director Tel: +386 4 206 53 87, Fax: +386 4506 64 42 Tel: +386 4 206 57 77, Fax: +386 4 206 64 04 e-mail: [email protected] e-mail: [email protected] www.sava.si www.sava.si
Matej Roblek, Procurator Peter Pavček, Procurator Tel: +386 4 206 61 59, Fax: +386 4206 64 06 Tel: +386 4 206 62 46, Fax: +386 4 206 64 04 e-mail: [email protected] e-mail: [email protected] www.savatech.si www.sava.si
Zdenka Benedičič, Workers’ Director BRAMIR, d. o. o., Mostar Tel: +386 4 206 58 77, Fax: +386 4206 64 60 Stanko Cvenkel, Director e-mail: [email protected] Tel: +386 4 206 57 77, Fax: +386 4 206 64 04 www.sava.si e-mail: [email protected] www.sava.si ENERGETIKA SAVA, d. o. o., Kranj SAVA ENSA, dooel., Skopje Stanko Cvenkel, Director Tel.: +386 4 206 57 77, Fax: +386 4206 64 04 Stanko Cvenkel, Director e-mail: [email protected] Tel: +386 4 206 57 77, Fax: +386 4 206 64 04 www.sava.si e-mail: [email protected] www.sava.si ENERGETIKA ČRNOMELJ, d. o. o., Kranj Stanko Cvenkel, Director Tel: +386 4 206 57 77, Fax: +386 4206 64 04 e-mail: [email protected] www.sava.si 235 236 ANNUAL REPORT 2011 www.nfdholding.si e-mail: [email protected] Tel: +38612309590,Fax: +3861230 9593 Miran Kraševec,ManagementBoardMember www.nfdholding.si e-mail: [email protected] Tel: +38612300600,Fax: +3861230 0620 Stanislav Valant, MSc, Management Board President NFD HOLDINGd.d.,Ljubljana www.gbkr.si e-mail: [email protected] Tel: +38642084000,Fax: +3864202 1503 Tilen Zugwitz,MSc,ManagementBoardMember www.gbkr.si e-mail: [email protected] Tel: +38642084000,Fax: +38642021503 Srečko Korber, ManagementBoardMember www.gbkr.si e-mail: [email protected] Tel: +38642084000,Fax: +38642021503 Gorazd Trček, ManagementBoardPresident GORENJSKA BANKA d.d.,Kranj Associated companies Tel: +38642066484, Rok Švigelj,Director GIP SAVA KRANJd.o.o.,Ruma www.sava.si e-mail: [email protected] Fax: +386
206 6460 www.abanka.si e-mail: [email protected] Tel: +38614718100,Fax: +3861432 5165 Gregor Hudobivnik,ManagementBoardMember www.abanka.si e-mail: [email protected] Tel: +38614718100,Fax: +38614325165 Radovan Jereb,MSc,ManagementBoardMember www.abanka.si e-mail: [email protected] Tel: +38614718100,Fax: +38614325165 Jože Lenič,MSc,ManagementBoardPresident ABANKA VIPA d.d.,Ljubljana www.sava.si e-mail: [email protected] Tel: +3864 Georg Pollak, MSc,Director SAVA ITd.o.o.,Kranj www.maksimainvest.si e-mail: [email protected] Tel: +38612309590,Fax: +3861230 9593 Milan Ževart,ManagementBoardPresident MAKSIMA INVESTd.d.,Ljubljana 206 5307,Fax: +38642066446 2011 REPORT ANNUAL INTRODUCTION
237 Annual report 2011
Sava d. d. Corporate Communications
Sava d.d. Škofjeloška cesta 6 4000 Kranj, Slovenia tel.: +386(4) 206 50 00, fax: +386(4) 206 64 46 http://www.sava.si Sava Group