Annual Report Gorenje Group 2009
Annual Report Gorenje Group 2009 Annual Report Gorenje Group 2009
Recommendation under 12: For their work, the members of the Supervisory Board are entitled to meeting attendance fees and the reimbursement of expenses for meeting attendance. Until now, the members of the Supervisory Board have been also entitled to remuneration for their performance in the form of profit sharing, if so decided by the General Meeting of Shareholders. Amendments to the Companies’ Act make this impossible (amendment to the Companies Act 1-C Proposed) and each General Meeting shall now take a special decision on the remuneration for the performance of the members of the Supervisory Board, which shall debit the costs of current company’s operation. Recommendation under 13 (13.1-13.6): The issue of establishing supervisory board committees is laid down in the Rules of Procedure of the Supervisory Board. In line with amended legislation, a five-member audit committee was formed in 2008, of which four members are appointed from among members of the Supervisory Board, and one member is appointed from among external experts in the fields of accounting and auditing. Due to the fact that the term of office of the members of the Supervisory Board expires on 18 July 2010, it has established an appointment committee consisting of five members. It has established no human resources committee since the term of office of the members of the Management Board expires on 26 July 2013. The Supervisory Board deals with all issues within its competences without forming any special committees, as this has not proved to be necessary in current practice. In the past, the Supervisory Board formed individual working groups without specific competences for the purpose of dealing with certain less relevant issues. Chapter: Management Board Recommendation under 16.1: Remuneration of the members of the Management board usually consists of a fixed and variable part. In November 2009 all members of the Management Board signed annexes to the employment contract on the basis of which their salaries are 25% and the salary of the president of the Management Board is 35 % lower on average. Due to their significant reduction the salaries are laid down in fixed forms in annexes. 57 Annual Report Gorenje Group 2009
Business report ECONOMIC ENVIRONMENT Conditions in sales markets In the majority of European markets the sales trend of household appliances was negative in the first half of the year 2009. Sales dropped most in Great Britain and Spain; the only market where an increase in sales volume was observed, was the Austrian one. The crisis that affected the East-European markets of household appliances was even more serious. A two-digit relative growth of the sales volume in the previous years turned into a two-digit reduction at the beginning of the year 2009. Countries in the region mentioned are not in the euro-zone and increase in euro affected them even more (especially Russia and Ukraine) resulting in a two-digit inflation rate and the prices of products imported from the euro-zone went up significantly. In addition to the world financial crisis the markets of the Near East were greatly affected by the low oil prices (when compared to the previous years). Major markets in this region are Iran, Saudi Arabia and United Arab Emirates were a two-digit reduction in the sales volume was suffered. Latin-American markets grew at a rate higher than 5 % in the first half of the year 2009 due to the Brazilian market that grew by 15 % since a tax rate for industrial products decreased. Conditions in purchasing markets In purchasing markets the increasing trend of raw material prices started at the beginning of March and lasted to September when record levels were achieved. The main reasons for such development can be in speculative demand along with the first signs of recovering of the global economy and a great quantity of cheap money provided by central banks. The increased demand from China cannot be neglected where the record import of oil and metals lasting for several months pushed up raw material prices on world stock exchanges. Due to taking of measures for slowing down of growth at the beginning of the year 2010 it is expected that the China pressure on the prices of raw materials will importantly decrease in future. Some macro-economic ratios for EU countries GDP (2009) UNEMPLOYMENT (2009) BUDGET DEFICIT (2008) PUBLIC DEBT (2008) HIGHLY DEVELOPED EU COUNTRIES Germany -5.0 7.5 0.0 65.9 France -2.2 10.0 -3.4 67.4 Great Britain -4.8 7.8 -5.0 52.0 EU countries in difficulties Portugal -2.9 10.4 -2.7 66.3 Italy -4.7 8.5 -2.7 105.8 Greece -1.1 9.7 -7.7 99.2 Spain -3.7 19.5 -4.1 39.7 NEW EUROPE Czech Republic -4.8 8.0 -2.1 30.0 Hungary -6.5 10.7 -3.8 72.9 Poland 1.2 8.9 -3.6 47.2 Slovenia -7.4 6.8 -1.8 22.5 EU (27 countries) -4.1 9.6 -2.3 61.5 Euro-zone (16 countries) -4.0 10.0 -2.0 69.3 Source: Eurostat; accessible at: http://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home/ 58 Annual Report Gorenje Group 2009
- Page 13 and 14: The Supervisory Board devoted speci
- Page 15 and 16: Gorenje Group The Gorenje Group is
- Page 17 and 18: Vision, mission, values VISION To b
- Page 19 and 20: BASIC STRATEGIC OBJECTIVES To succe
- Page 21 and 22: The performance of the Division's b
- Page 23 and 24: The products of the Gorenje Group a
- Page 25 and 26: Innovations and products The crisis
- Page 27 and 28: Production and quality Home Applian
- Page 29 and 30: Shares of Gorenje and investor rela
- Page 31 and 32: OWNERSHIP STRUCTURE Ten Major Share
- Page 33 and 34: OWN SHARES AND VOTING RIGHTS On the
- Page 35 and 36: For the second consecutive year, we
- Page 37 and 38: Report on corporate social responsi
- Page 39 and 40: AVERAGE AGE AND HEALTH CARE In the
- Page 41 and 42: Staff Training Rapid development in
- Page 43 and 44: Culture We realise how important bo
- Page 45 and 46: Quantity of hazardous wastes (kg/pi
- Page 47 and 48: Energy consumption of Gorenje washe
- Page 49 and 50: DR. JOŽE ZAGOŽEN Chairman of the
- Page 51 and 52: PETER KOBAL Member of the Superviso
- Page 53 and 54: FRANJO BOBINAC President of the Man
- Page 55 and 56: DRAGO BAHUN member of the managemen
- Page 57 and 58: FRANC KOŠEC member of the manageme
- Page 59 and 60: GENERAL MEETING OF SHAREHOLDERS The
- Page 61 and 62: EXTERNAL AUDIT The audit of financi
- Page 63: CODE OBSERVANCE The contents of the
- Page 67 and 68: SALE IN TERMS OF DIVISIONS The Home
- Page 69 and 70: A sharper fall in the market was su
- Page 71 and 72: HOME INTERIOR DIVISION South-Easter
- Page 73 and 74: Structure of sales of the Ecology,
- Page 75 and 76: The main reasons for the reduction
- Page 77 and 78: Due to the circumstances described
- Page 79 and 80: At the end of 2009 equity capital a
- Page 81 and 82: Cash flow of the Gorenje Group (in
- Page 83 and 84: Investments of the Gorenje Group an
- Page 85 and 86: The most important material of the
- Page 87 and 88: Information system risks are relate
- Page 89 and 90: Ecology, energy and services divisi
- Page 91 and 92: RESEARCH AND DEVELOPMENT Household
- Page 93 and 94: 52. Kemis-Termoclean, d.o.o., Croat
- Page 95 and 96: Achievement of goals in the year 20
- Page 97 and 98: Financial statements of Gorenje Gro
- Page 99 and 100: CONSOLIDATED STATEMENT OF FINANCIAL
- Page 101 and 102: CONSOLIDATED STATEMENT OF CHANGES I
- Page 103 and 104: NOTES TO THE CONSOLIDATED FINANCIAL
- Page 105 and 106: A contingent liability of the acqui
- Page 107 and 108: ) Foreign currency (i) Foreign curr
- Page 109 and 110: value of the derivative is recognis
- Page 111 and 112: Acquisition of minority interests A
- Page 113 and 114: current economic and credit conditi
Business report<br />
ECONOMIC ENVIRONMENT<br />
Conditions in sales markets<br />
In the majority of European markets the sales trend of household appliances was negative in the first<br />
half of the year <strong>2009</strong>. Sales dropped most in Great Britain and Spain; the only market where an<br />
increase in sales volume was observed, was the Austrian one.<br />
The crisis that affected the East-European markets of household appliances was even more serious. A<br />
two-digit relative growth of the sales volume in the previous years turned into a two-digit reduction at<br />
the beginning of the year <strong>2009</strong>. Countries in the region mentioned are not in the euro-zone and<br />
increase in euro affected them even more (especially Russia and Ukraine) resulting in a two-digit<br />
inflation rate and the prices of products imported from the euro-zone went up significantly.<br />
In addition to the world financial crisis the markets of the Near East were greatly affected by the low oil<br />
prices (when compared to the previous years). Major markets in this region are Iran, Saudi Arabia and<br />
United Arab Emirates were a two-digit reduction in the sales volume was suffered. Latin-American<br />
markets grew at a rate higher than 5 % in the first half of the year <strong>2009</strong> due to the Brazilian market that<br />
grew by 15 % since a tax rate for industrial products decreased.<br />
Conditions in purchasing markets<br />
In purchasing markets the increasing trend of raw material prices started at the beginning of March and<br />
lasted to September when record levels were achieved. The main reasons for such development can<br />
be in speculative demand along with the first signs of recovering of the global economy and a great<br />
quantity of cheap money provided by central banks.<br />
The increased demand from China cannot be neglected where the record import of oil and metals<br />
lasting for several months pushed up raw material prices on world stock exchanges. Due to taking of<br />
measures for slowing down of growth at the beginning of the year 2010 it is expected that the China<br />
pressure on the prices of raw materials will importantly decrease in future.<br />
Some macro-economic ratios for EU countries<br />
GDP (<strong>2009</strong>)<br />
UNEMPLOYMENT<br />
(<strong>2009</strong>)<br />
BUDGET<br />
DEFICIT<br />
(2008)<br />
PUBLIC DEBT<br />
(2008)<br />
HIGHLY DEVELOPED EU COUNTRIES<br />
Germany -5.0 7.5 0.0 65.9<br />
France -2.2 10.0 -3.4 67.4<br />
Great Britain -4.8 7.8 -5.0 52.0<br />
EU countries in difficulties<br />
Portugal -2.9 10.4 -2.7 66.3<br />
Italy -4.7 8.5 -2.7 105.8<br />
Greece -1.1 9.7 -7.7 99.2<br />
Spain -3.7 19.5 -4.1 39.7<br />
NEW EUROPE<br />
Czech Republic -4.8 8.0 -2.1 30.0<br />
Hungary -6.5 10.7 -3.8 72.9<br />
Poland 1.2 8.9 -3.6 47.2<br />
Slovenia -7.4 6.8 -1.8 22.5<br />
EU (27 countries) -4.1 9.6 -2.3 61.5<br />
Euro-zone (16 countries) -4.0 10.0 -2.0 69.3<br />
Source: Eurostat; accessible at: http://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home/<br />
58<br />
<strong>Annual</strong> <strong>Report</strong> <strong>Gorenje</strong> <strong>Group</strong> <strong>2009</strong>
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