Annual Report Gorenje Group 2009

Report of the Supervisory Board
REPORT OF THE SUPERVISORY BOARD OF GORENJE, d.d.
ON THE REVIEW OF THE 2009 ANNUAL REPORT
Dear shareholders,
In 2009 the Supervisory Board supervised the business operation of Gorenje, d.d. and the Gorenje
Group within the scope of powers and authorisations bestowed by applicable legal regulations and the
Articles of Association of the Company, and also performed other tasks within its competences.
The Supervisory Board carried out its tasks in 2009 in the following composition: Dr. Jože Zagožen as
Chairman, Ivan Atelšek as Deputy Chairman, Peter Ješovnik, M.Sc., Milan Podpecan, Andrej
Presecnik, Gregor Sluga, M.Sc., Peter Kobal, Drago Krenker, Krešimir Martinjak, and Jurij Slemenik.
ACTIVITIES OF THE SUPERVISORY BOARD
At ten meetings (one of which was a correspondence meeting) held in 2009, the Supervisory Board
devoted most of its attention to the business and financial development of the Gorenje Group and the
parent company, significant business events, and the implementation of general strategic and business
policies.
In line with its established practice, the Supervisory Board adopted the business plan of the parent
company and the Gorenje Group in December 2008. Given the uncertainty prevailing at the time, the
Supervisory Board assessed the plan as appropriate and at the same time sufficiently flexible
considering the various possible scenarios of development of the financial crisis, as it enabled the
Group to promptly respond to the rapid changes in operating conditions. The Management Board
reported to the Supervisory Board, on a quarterly basis, on the day-to-day business operations and
financial position of the Gorenje Group and the parent Company. The Management Board also
regularly and promptly informed the Supervisory Board on the operating conditions, particularly the
situation in world markets, changes in the prices of materials and raw materials, risk management, and
the business operations of competitors. It was established that in 2009 the Management Board
implemented all the resolutions adopted by the Supervisory Board.
Issues related to the education and age structure of employees, as well as working conditions, played
an important role in discussions. The Supervisory Board dealt with these issues from the aspect of
crisis conditions in the economy and the fulfilment of expectations of employees and all stakeholders.
Business operations were extremely difficult in the first quarter of 2009. It was impossible to predict the
end of the financial crisis and when the crisis would reach its lowest level. The Supervisory Board
carefully monitored the business operations of the Company and movements in world markets, and
promptly drew attention to:
• the management of operating current assets, particularly receivables (which increased due to
declining liquidity in the market),
• the preservation of market shares and penetration into new markets,
• the changed sales structure of home appliances.
Business operations were successful in the third quarter, when the Management Board successfully
mitigated the losses suffered in the first and, to a smaller extent, second quarter. The results attained in
the last quarter were in line with expectations, while the joint result for 2009 is better than the estimates
made at the beginning of the year, which may undoubtedly be attributed to the hard work of all
employees of the Company.
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Annual Report Gorenje Group 2009