Annual Report Gorenje Group 2009

Cash flow of the Gorenje Group (in thousand EUR)
2009 2008 Change in %
Net operating cash flow 65,577 38,916 68.5%
Net financing flow from investing activities -19,458 -191,338 -89.8%
Net financing flow from financing activities -43,104 158,853
Net increase in cash and cash equivalents 3,015 6,431 -53.1%
Source: Data of the Gorenje Group
Net financial flow from financing activities increased by 171.2 million EUR when compared to the
previous year, which is mainly a result of smaller investments. In 2008 the Gorenje Group intended 95
million EUR for the purchase of an affiliated undertaking (Atag). In 2009 the company made no
acquisitions with the exception of the purchase of a minority share in the company Surovina amounting
to 7.6 million EUR. Some important results were achieved also by anti-crisis measures in the area of
reduction in working capital.
Free cash flow of the Gorenje Group (in thousand EUR)
Free cash flow 2009 2008 Change
Net profit or loss -12,232 10,181 -22,413
Amortisation / depreciation 56,050 57,121 -1,071
Net cash flow 43,818 67,302 -23,484
Capex -28,732 -76,807 48,075
Investment in net current assets 17,936 -35,616 53,552
– change in inventories 35,023 -35,533 70,556
– changes in receivables due from customers 10,277 -3,482 13,759
– change in trade payables -27,364 3,399 -30,763
Free cash flow 33,022 -45,121 78,143
Source: Data of the Gorenje Group
FINANCIAL MANAGEMENT
The Gorenje Group carries out the uniform policy of operating liabilities and receivables, financing and
investing and in co-operation with banks and insurance companies. The implementation of the financial
policy and cash management are under competence of the parent company. In 2009 it strengthened its
role in financing by provision of required financial resources under market and favourable conditions for
all the companies within the Group.
Short-term financial solvency of the Group has been ensured by the efficient cash management and
suitable amount of credit lines for short-term cash management. Special attention has been paid to the
planning of cash flows at the Group level.
Since 2006 an international programme of protection of property and liability has been concluded with
the insurance company Generali and its business partners; this programme includes the majority of
companies in the Gorenje Group. The conditions of transport insurance and car insurance have been
unified for all companies in Slovenia concluded with Triglav - the insurance company. These insurance
programmes have been up-graded and adjusted to the requirements of operation and risks on an
annual basis.
The Gorenje Group had no liquidity problems in the last year. Coverage of long-term assets by longterm
sources amounted to 118.6 % at the end of 2009. At the end of the year liquidity sources were
available in the amount of 162.7 million EUR as cash and cash equivalents (27.1 million EUR), shortterm
time deposits with banks (16.1 million EUR) and non-utilised, granted revolving loans (119.4
million EUR).
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Annual Report Gorenje Group 2009