Annual Report Gorenje Group 2009

of the Gorenje Group’s lending portfolio. The Gorenje Group’s management estimates that the
exposure to interest rate risk has increased.
Liquidity riskis the risk that the Group will fail to meet commitments in stipulated period of time due to
the lack of available funds.
Borrowings in the amount of TEUR 191,000 mature in 2010. For this reason, the Group has been
negotiating debt rescheduling agreements with the banks and has been decreasing its debt
rescheduling risk. The liquidity reserve as at 31 December 2009 in the amount of TEUR 162,669,
which consists of unused revolving credit lines, short-term deposits with banks, and cash in banks, is
used to ensure adequate short-term control of cash flows and to decrease short-term liquidity risk.
Short-term liquidity riskis estimated to have increased even though of cash management, adequate
available credit lines for short-term control of cash flows, a high degree of financial flexibility, and a
good access to financial markets and funds. The reason for an increase in short-term liquidity risk is a
decrease in availability of sources of funds from business partners, both buyers and sellers.
Long-term liquidity risk is estimated as being moderate due to efficient operations, effective cash
management, sustainable ability to generate cash flows from operating activities, and an adequate
capital structure.
The Gorenje Group's management estimates that the exposure to liquidity risk is moderate.
Capital management
The Group's policy is to maintain a strong capital base so as to ensure stakeholders’ confidence and to
sustain future development of the Gorenje Group. As one of the strategic ratios, the Group defines the
return on capital as net profit for the period attributable to majority shareholders divided by average
shareholders' equity, excluding minority interests. The Group seeks to maintain a balance between the
higher returns, which are rendered possible by a higher level of borrowings, and the advantages and
security ensured by a strong capital structure. The Group's objective in the 2010-2013 Strategic Plan is
to achieve a 11.8 percent rate of return on invested capital.
The dividend policy is based on the investment plans, optimum capital structure policy, and
shareholders' expectations and interests. The amount of dividend per share is proposed by the
Management Board and the Supervisory Board of the controlling company. Dividends are paid from the
accumulated profit of the controlling company determined in accordance with the relevant regulations
in Slovenia. The resolution on the appropriation of accumulated profit is adopted by the Shareholders'
Meeting.
The Gorenje Group has no employee share-owning scheme and no share option programme. There
were no changes in the approach to capital management in 2009. Neither the controlling company nor
its subsidiaries were subject to capital requirements determined by the regulatory authorities.
There are no provisions in the Articles of Incorporation that would invalidate the proportionality of rights
arising from shares, such as the rights of minority shareholders or the limitation of voting rights, and
there are no resolutions adopted on conditionally increased capital.
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Annual Report Gorenje Group 2009