Notes to the Financial Statements of Sava Dd in Accordance
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ANNUAL REPORT 06 INTRODUCTION BRINGING NEW DIMENSIONS TO LIFE We at Sava design, encourage and develop operations jointly to give new dimensions to life. This is particularly noticeable in the Tourism division where we operate under the brand name Sava Hotels&Resorts. Pannonian Spas and Sava Hoteli Bled combine our services in eastern Slovenia and Bled; in the past eight years we have invested over 85 million euros in renewing existing and building new facilities and equipment. By the year 2011 we shall have invested a further 50 million euros and offered our guests hotel and other tourist services at an even higher level of quality enhanced through care for the health and well-being of our guests. One of the most recent acquisitions is the luxury 5* hotel INTRODUCTION Livada Prestige - the first of its kind in the world that provides black thermal water in its rooms. The renovated hotels Park and Golf with wellness centres in Bled both aim to provide premium quality as well. Currently we are building the 4* Grand Hotel Primus in Ptuj and further new plans are awaiting realisation. By discovering and implementing new opportunities, ANNUAL REPORT 2006 we are bringing a new dimension to the lives of our guests and opening up development opportunities in the local environment and regions, thus enabling the growth and consolidation of the Sava Group. Therefore, let these new dimensions of life guide us through the annual report. 3 INDEX INTRODUCTION 1. PROFILE OF THE HOLDING COMPANY SAVA D.D. 6 2. ORGANISATIONAL STRUCTURE OF THE SAVA GROUP . 7 3. MILESTONES IN OUR HISTORY . 11 4. SIGNIFICANT FINANCIAL DATA AND INDICATORS . 12 5. SURVEY OF MORE IMPORTANT EVENTS AND ACHIEVEMENTS . 14 5.1. More important events and achievements in 2006 . 14 5.2. More important events and achievements after the accounting period . 15 6. REPORT FROM THE CHAIRMAN OF THE BOARD OF MANAGEMENT . 16 7. MANAGEMENT AND ADMINISTRATIVE BODIES . 20 7.1. Board of Management . 20 7.2. Supervisory Board . 22 8. REPORT BY THE SUPERVISORY BOARD . 27 9. THE CORPORATE GOVERNANCE SYSTEM . 32 10. RISK MANAGEMENT . 37 11. FINANCIAL MANAGEMENT . 43 BUSINESS ANALYSIS 12. THE SAVA SHARE AND OWNERSHIP STRUCTURE . 47 13. DEVELOPMENT STRATEGY . 55 14. GENERAL ECONOMIC CONDITIONS . 61 15. BUSINESS OPERATIONS OF THE SAVA GROUP . 62 15.1. Business performance . 62 15.2. Assets and liabilities structure . 67 16. BUSINESS OPERATIONS BY DIVISION . 69 16.1. Rubber Manufacturing division with the Foreign Trade Network . 69 16.2. Tourism division . 71 16.3. Real Estate division . 74 16.4. Other Operations . 76 16.5. Investment Finance division . 78 ANNUAL REPORT 2006 INTRODUCTION 17. BUSINESS OPERATIONS OF SAVA D.D. 80 17.1. Business performance . 80 17.2. Assets and liabilities structure . 84 18. OUTLOOK FOR 2007 . 86 19. MARKETING . 87 19.1. Managing brand names . 87 19.2. Focusing on the customer . 88 20. STRATEGIC PURCHASING AND SUPPLIERS . 89 21. DEVELOPMENT OF BUSINESS PROCESSES . 92 22. QUALITY ASSURANCE SYSTEM . 93 23. EU PROJECTS . 95 24. DEVELOPMENT OF INFORMATION SUPPORT . 97 4 SUSTAINABLE DEVELOPMENT REPORT 25. SUSTAINABLE DEVELOPMENT IN THE SAVA GROUP . 99 26. HIGHLIGHTS OF THE YEAR . 100 27. THE DEVELOPMENT OF THE EMPLOYEES . 107 27.1. Concern for employees . 107 27.2. Concern for employees outside of working hours . 113 27.3. Concern for employee safety and health at work . 113 28. STANDARDS AND POLICIES REGARDING OCCUPATIONAL SAFETY AND HEALTH . 116 29. IMPORTANT ACKNOWLEDGEMENTS AND AWARDS IN 2006 . .117 30. DEVELOPING THE SOCIAL COMMUNITY . 123 30.1. Sponsorships and donations . 123 30.2. Integration of employees in the social community . 125 31. PROTECTING THE ENVIRONMENT AND FIRE SAFETY . ..