Annual Report Gorenje Group 2009

(government incentives of infrastructural projects, making of strategic inventories), reduction in capacity
at the beginning of the year and process of replenishing inventories.
In the second part of the previous year the world economy started climbing out of the deep recession
and therefore the demand for raw materials increased moderately.
Changes in raw material prices in world markets in the year 2009
30 Dec. 09 31 Dec. 2008
Change
(measured in
EUR)
Energy products ($/barrel)
Crude oil Brent 77.93 45.58 65.80 %
Non-ferrous metals ($/mt)
Copper 7.35 3.06 132.88 %
Aluminium 2.21 1.54 39.54 %
Zinc 2.57 1.21 106.39 %
Nickel 18.48 11.70 56.21 %
Steel sheet (EUR/t) 436.70 500.00 -12.70 %
Indexes
LMEX Index (6) 3,398.60 1,723.30 91.25 %
Reuters CRB I (19) 283.38 229.54 19.76 %
Plastixx (polymer) 1,570.60 1,354.10 12.52 %
Sources: crude oil Brent: www.wtrg.com, WTRG Economics London; LMEX: www.finanztreff.de; www.lme.com; non-ferrous metals:
Reuters 3000 Xtra Terminal Platform, paid portal (Turk, Krt); CRB: www.onvista.de; www.crbtrader.com; Reuters-Jefferies CRB
(Commodity Research Bureau); Plastixx: www.pieweb.plasteurope.com; steel sheet: www.crugroup.com
Household Appliances Division
In 2009 the prices of industrial metals and crude oil went up most. In case of raw materials that are not
traded on stock exchanges (e.g. steel sheet) the prices reflected the economic situation and conditions
of weak demand in real terms. At the end of 2008 the price of cold-rolled sheet metal reduced by 12.7
% and the price of stainless steel increased by 6.5 %. In spite of extensive increases in prices of raw
materials last year the prices did not reach record levels of the last two years and were lower than the
average of the year 2008 on average.
Strategic orientation of the Gorenje Group for the protection against increases in raw material prices:
• monitoring and timely detection of market influences,
• time-sharing of stock exchange raw materials through suppliers,
• conduct of auctions in order to get the most competitive price conditions,
• development and increase in volume of supply sources from Asia and in US dollar areas of
the South-East Europe,
• strengthening of relations with strategic partners.
Home Interior Division
In the financial year 2009 great attention was paid to price control of strategic input materials that
importantly influence out costs and whose price increased in the second half of the year.
Kitchen materials to be built-in and their suppliers were unified in 2009. Thus more favourable
purchasing conditions were obtained and inventories decreased. The activities mentioned will reflect in
the savings of the year 2010. Groups of materials that will be excluded from purchasing due to the
kitchen unification project have been defined.
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Annual Report Gorenje Group 2009