Annual Report Gorenje Group 2009

The most important material of the Home Interior Division is chipboard since it has a significant
influence on costs, quality and undisturbed production of the division. Chipboard suppliers are
organised in cartels and harmonise the price policy; joining of new competitors has been hindered by
the limitation of board transport to 700 kilometres. At present the increase in prices prevails. The risk
has been minimised by the inclusion of all suitable suppliers in our purchase chains and thus optimal
prices and undisturbed deliveries have been provided.
Product risks may lead to incorrect operation of appliances in the market and in an extreme case to
product liability of the producer. These risks are limited by suitable development systems and quality
assurance in scope of production, sales and after-sales processes and additionally by the insurance of
product liability. A quality management system in accordance with the requirements of SIST EN ISO
9001/2000 and the system of accredited methods under ISO 17025 and the six sigma quality
management system have been established in the Gorenje Group. The use of the new program for the
SAS cancellation analysis shortens the time to detection of any possible cancellations and limits costs
arising from serial failures.
Investment and development risks are associated with the achievement of the planned economic of
investments, successful activation of investments in the development of new product generation and
successful introduction of new technologies. Risks of introducing new generations and new
technologies have been reduced by detailed preparation of business plans. A project approach
enabling monitoring of the goals set and alleviating searching for measures in cases of deviations from
the plan has been adopted.
The reduced scope of production dictates a decrease in labour costs and thus dismissal Human
resources risks have increased also in compliance with the Minimal Salary Act. These phenomena
render the conditions of a social dialogue. Great attention has now been paid to adequate and timely
informing, responses to questions relating to the reduction in the number of employees, salaries and
healthy working environment. In order to be able to provide appropriate human resources on key
positions we will continue the policy of granting scholarships, off-the-job-training and motivation for the
assumption of new challenges and possibility of variable remuneration.
Property loss risks include property and transport risks that have been transferred to insurance
companies or business partners and thus the exposure to such risks has been reduced.
FINANCIAL RISKS
The main goals of financial risk management are achievement of operating stability, increase in value
of the companies within the Gorenje Group, increase in financial revenue, reduction in financial
expenses and decrease in effect of exceptional loss events.
Exposure of the Group to individual kinds of financial risks has been assessed on the basis of their
effects on cash flows. Activities relating to the protection against them have been carried out on the
business, investment and financial fields.
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Annual Report Gorenje Group 2009