ANNUAL REPORT 2008 - Gorenje Group

ANNUAL REPORT 2008

Velenje, April 2009

LETTER OF THE PRESIDENT OF THE MANAGEMENT BOARD. ........................................... 4
KEY ACHIEVEMENTS OF THE GORENJE GROUP.......................................................... 8
FINANCIAL HIGHLIGHTS OF THE GORENJE GROUP. ..................................................... 10
EVENTS IN 2008............................................................................................ 12
REPORT OF THE SUPERVISORY BOARD OF GORENJE, d.d. ............................................. 14
1. CORPORATE GOVERNANCE. ............................................................................ 19
1.1 ORGANIZATIONAL STRUCTURE AND COMPOSITION OF THE GORENJE GROUP................ 20
1.2 CORPORATE GOVERNANCE STATEMENT. ................................................... 24
1.3 STATEMENT OF MANAGEMENT RESPONSIBILITY............................................. 31
2. VISION, MISSION AND STRATEGIC OBJECTIVES OF THE GORENJE GROUP. ......................... 33
3. BUSINESS REPORT....................................................................................... 37
3.1 ECONOMIC AND POLITICAL CONDITIONS.................................................... 38
3.2 SALES AND MARKET POSITION ............................................................. 40
3.2.1 HOME APPLIANCES DIVISION.............................................................. 41
3.2.1.1 SITUATION IN THE MARKET OF LARGE HOUSEHOLD APPLIANCES.......................... 41
3.2.1.2 SALES OF THE HOME APPLIANCES DIVISION. ............................................. 42
3.2.2 HOME INTERIOR DIVISION. ............................................................... 46
3.2.3 ECOLOGY, ENERGY AND SERVICES DIVISION. ............................................. 46
3.3 MARKETING................................................................................ 48
3.4 PURCHASING. ............................................................................. 49
3.5 INVESTMENTS.............................................................................. 50
3.5.1 HOME APPLIANCES DIVISION.............................................................. 50
3.5.2 HOME INTERIOR DIVISION. ............................................................... 50
3.5.3 ECOLOGY, ENERGY AND SERVICES DIVISION. ............................................. 51
3.6 DEVELOPMENT. ........................................................................... 52
3.6.1 HOME APPLIANCES DIVISION.............................................................. 52
3.6.2 HOME INTERIOR DIVISION ................................................................ 53
3.6.3 ENERGY, ECOLOGY AND SERVICE DIVISION. .............................................. 54
3.7 PRODUCTION .............................................................................. 55
3.8 QUALITY MANAGEMENT ................................................................... 56
3.8.1 HOME APPLIANCES DIVISION ............................................................. 56
3.8.2 HOME INTERIOR DIVISION. ............................................................... 56
3.9 FINANCIAL MANAGEMENT ................................................................. 57
3.10 RISK MANAGEMENT ....................................................................... 58
3.10.1 BUSINESS RISK MANAGEMENT ........................................................... 58
3.10.2 FINANCIAL RISK MANAGEMENT.......................................................... 60
3.10.3 OPERATING RISK MANAGEMENT. ........................................................ 61
3.11 CREATING VALUE FOR SHAREHOLDERS .................................................... 63
3.12 BUSINESS PLAN AND ANTICIPATED OPERATING CONDITIONS IN THE YEAR 2009............ 65
3.13 REPORT ON SOCIAL RESPONSIBILITY ...................................................... 67
3.13.1 RESPONSIBILITY TO EMPLOYEES. ........................................................ 67
3.13.2 RESPONSIBILITY TO USERS OF PRODUCTS AND SERVICES. ............................... 69
3.13.3 RESPONSIBILITY TO THE NATURAL ENVIRONMENT. ...................................... 69
3.13.4 RESPONSIBILITY TO THE NARROW AND BROADER SOCIAL COMMUNITY .................. 71
3.14 ANALYSIS OF BUSINESS PERFORMANCE OF THE GORENJE GROUP ......................... 72
4. ACCOUNTING REPORT .................................................................................. 77
4.1 ACCOUNTING REPORT PREPARED UNDER IFRS.............................................. 78
4.1.1 ACCOUNTING REPORT OF THE GORENJE GROUP........................................... 78
4.1.1.1 CONSOLIDATED FINANCIAL STATEMENTS OF THE GORENJE GROUP ....................... 78
4.1.1.2 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.................................. 84
4.1.1.3 POROČILO REVIZORJA.................................................................... 132
4.1.2 ACCOUNTING REPORT OF GORENJE, D.D................................................... 137
4.1.2.1 FINANCIAL STATEMENTS OF GORENJE, D.D.. .............................................. 137
4.1.2.2 NOTES TO THE FINANCIAL STATEMENTS. ................................................. 141
4.1.2.3 AUDITOR'S REPORT ...................................................................... 180
GORENJE GROUP COMPANIES. ........................................................................... 182

4
2008
LETTER OF THE PRESIDENT
OF THE MANAGEMENT BOARD
Franjo Bobinac, MBA
President of the
Management Board
Dear shareholders, The year 2008 significantly marked the history of Gorenje. Although the Company's
current business operations are decisively influenced by a decline in orders, which began
in the last quarter of 2008, the most important event of 2008 from the long-term perspective occurred
in summer, i.e. in mid June, when Gorenje acquired Atag, a Dutch provider of household appliances.
With the integration of Atag into the Gorenje Group, we have covered the last grey spot in Europe
and entered the markets of Benelux and its population of more than 27 million, where the Company
had only been minimally present before the acquisition. At the same time, we have rounded the
set of brand names with a brand from the highest price grade, which will enable us to substantially
solidify the position of the Gorenje Group in Europe. Gorenje is thus implementing its strategic plan
and its role of active consolidator in the household appliances sector.
The integration of the Atag company and the growth of the Ecology, Energy and Services Division
have, in spite of the reduced volume of operations in the Home Interior Division, significantly contributed
to the fact that the Gorenje Group has, despite the turbulences, increased its scope of business
activities and that its consolidated sales revenues in the amount of EUR 1.33 billion have even
surpassed the plan.
Following a period of very satisfactory results in the first nine months of 2008, the situation suddenly
began to deteriorate in the wake of the emerging financial and economic crisis. The recession
spread rapidly to practically all key markets, inevitably leading to a substantial decline in the
demand for Gorenje products, which are classified among durable goods. This blow was particularly
strong in some Eastern European countries, especially those with soft currencies and solvency
problems, where we were additionally affected by considerable exchange rate fluctuations. Gorenje
reacted to the crisis quickly and resolutely, and with sensitivity for the interests of all participants,
which is a longstanding tradition of the Company.

5
A review of the operations of manufacturers of large household appliances shows that only a few
managed to successfully confront the strained operating conditions at the end of 2008, which affected
the entire sector and were reflected primarily in the reduced demand for products. All companies
responded by reducing operating costs and, due to the intensity of work that is characteristic
of this sector, focused on staff reductions. At Gorenje, however, we had previously devoted close
attention to the costs of materials and raw materials by means of favourable forward purchases of
raw materials and further accelerated development of supply sources in Asia, in other dollar-based
supply markets, and in the countries of South-eastern Europe. We then focused on the costs of logistics,
various services, and administrative costs. In third place were employee benefits, where we
have introduced temporarily shortened working hours and improved organization with the aim of
achieving higher productivity and adaptability which, within the scope of the social agreement, enables
better adaptation to the level of orders.
In past years, Gorenje invested extensively in development, and for this reason our investment policy
in 2009 is extremely selective and oriented exclusively towards the development of new products
and sales activities, i.e. only towards those investments that are crucial to the further development
of the Company. In the past year, the most distinguished ambassadors of the Gorenje brand
name came from the cooking appliance line, where we created a new generation of cookers, builtin
ovens and cooking hobs. This was both a challenge and an opportunity for Gorenje.
We take special pride in the fact that numerous innovative, conceptual and original design and
functional solutions that are unique in their respective sectors – and thus also patent-protected –
have been created in their entirety by Gorenje's development and design teams.
One of our key activities aimed at ensuring the success of our anti-crisis measures is the upgrading
of pro-active and open communications with employees, buyers, suppliers, owners, the media,
and all other participants in connection with the deteriorating conditions for the sale of household
appliances, as well as the activities and guidelines implemented by the management of Gorenje for
their alleviation.
The Company is attempting to neutralise the negative effects of the crisis in all areas of its operations.
The results for 2008 indicate that we are doing better than many of our competitors, which is why
we are determined to emerge from this crisis even stronger and more flexible than before. Despite
the current difficulties, I believe in Gorenje's long-term strategy, which places products with higher
value in the forefront, and that our market position will strengthen after the end of the crisis, as this
demanding situation will bring about a considerable shuffling of players in the household appliances
branch. There is no doubt, however, that 2009 will be a very difficult year for Gorenje as a manufacturer
of household appliances, and will be focused on the creation of positive monetary flows,
restructuring and, at the same time, preserving as many jobs as possible.
Dear shareholders, despite the crisis shock in the last few months of the calendar year, we have reason
to be satisfied with the 2008 results. In fulfilling our mission, you are supporting us with your
trust, for which I sincerely thank you on behalf of the Management Board and my co-workers. My
special thanks goes to the members of the Supervisory Board of Gorenje, d.d. for their professional
cooperation, with which they have and will continue to contribute to the successful development
of the Company. In future we shall continue to foster openness through the proactive and extensive
informing of all shareholders on our activities, to which we are committed not only by the distinguished
awards received for communication, but also by the values we pursue in fulfilling our mission
towards our owners, employees, business partners, and the broader environment.

Management Board
Branko Apat member
Drago Bahun member
Franc Bobinac president
Mirjana Dimc Perko
member
Franc Košec member
Uroš Marolt member

8
2008
KEY ACHIEVEMENTS
OF THE GORENJE GROUP
1,500,000
Sales revenue
(in 000 EUR)
1,200,000
900,000
600,000
CONSOLIDATED REVENUE
Despite the difficult
operating conditions, the
Company achieved a growth
in volume of operations
that was also influenced by
the newly acquired Atag
company.
300,000
0
2004 2005 2006 2007 2008
905,324 1,014,669 1,111,035 1,293,438 1,330,753
100,000
EBITDA
(in 000 EUR)
80,000
60,000
40,000
20,000
0
7.5%
Share in
gross
operating
yield (%)
7.3%
7.1%
7.0%
6.9%
2004 2005 2006 2007 2008
71,379 75,749 80,404 92,857 94,014
EARNINGS BEFORE
INTEREST, TAXES,
DEPRECIATION AND
AMORTISATION The costs
of goods, materials and
services grew at a slower
rate than the volume of
operations, which together
with the acquisition of Atag
had a favourable impact on
growth. Employee benefits
(harmonisation with labour
legislation) and amortisation
expenses had a stronger
negative impact.
30,000
Total profit
or loss
25,000
20,000
15,000
10,000
5,000
0
2.4%
Share in
gross
operating
2.3%
2.5%
2.2%
1.1%
2004 2005 2006 2007 2008
22,471 23,815 27,843 29,400 15,473
TOTAL PROFIT OR LOSS
Owing to the negative
impact of increased financial
activities, the total profit
or loss did not follow the
growth of EBITDA. The
higher negative result of
financial activities was due to
impairments of investments
in line with IFRS, higher
interest expenses as the
consequence of higher
interest rates, and higher
indebtedness and exchange
losses.

9
NET PROFIT OR LOSS Due
to higher taxes on profit
or loss, net profit or loss
achieved a lower growth
than total profit or loss.
2.2%
Share in
gross
operating
yield (%)
2.1%
2.0%
1.8%
25,000
Net profit or loss
(in 000 EUR)
20,000
15,000
10,000
0.7%
5,000
2004
21,262
2005
21,368
2006
22,316
2007
23,664
2008
10,181
0
INVESTMENTS Investment
activities were focused
on the development of
products and markets
of the main activity in
Slovenia and abroad,
particularly in Serbia,
and partly also on
environmental protection
and energy management.
7.7%
Share in
sales
revenue
(%)
5.5%
6.4%
5.7%
5.8%
80,000
Investments
(in 000 EUR)
60,000
40,000
20,000
2004 2005 2006 2007 2008
69,940 55,405 71,109 74,106 76,807
0
SHARE OF FINANCIAL
LIABILITIES IN EQUITY The
growth of indebtedness is
largely the consequence
of the acquisition of Atag
and partly due to the
large volume of realized
investments, which strongly
surpassed the depreciation
expense.
1.2
Coefficient
1.0
0.8
0.6
0.4
0.2
2004 2005 2006 2007 2008
0.9 1.1 1.2 0.9 1.2
0

FINANCIAL HIGHLIGHTS
OF THE GORENJE GROUP
In thousands of EUR, or as stated
From the Income Statement
Net sales revenue
Gross operating yield
Earnings before interest, taxes, depreciation and amortisation (EBITDA)
% in gross operating yield
Earnings before interest and taxes (EBIT)
% in gross operating yield
Total profit
% in gross operating yield
Net profit
% in gross operating yield
Return on sales (ROS)
Return on assets (ROA)
Return on equity (ROE)
From the Balance Sheet (as at 31 December)
Assets
Equity
% in liabilities
Investments in property, plant and equipment and intangible assets
Employees
Average number of employees
Number of employees as at 31 December
Shares of Gorenje, d.d.
Carrying amount of a share (EUR)
Average daily price of shares as at 31 Dec (EUR)
Dividend paid per share (EUR)
Capital gain
Dividend yield
Total yield

11
2007 2006 2005 2004
1,330,753 1,293,438 1,111,035 1,014,669 905,324
1,367,456 1,323,973 1,134,076 1,039,411 948,594
94,014 92,857 80,404 75,749 71,379
6.9% 7.0% 7.1% 7.3% 7.5%
36,893 39,646 30,822 26,956 29,109
2.7% 3.0% 2.7% 2.6% 3.1%
15,473 29,400 27,843 23,815 22,471
1.1% 2.2% 2.5% 2.3% 2.4%
10,181 23,664 22,316 21,368 21,262
0.7% 1.8% 2.0% 2.1% 2.2%
0.8% 1.8% 2.0% 2.1% 2.3%
0.9% 2.5% 2.6% 2.7% 3.0%
2.7% 7.7% 8.9% 8.7% 8.6%
1,257,732 1,000,788 904,610 816,068 747,602
394,522 350,985 254,433 245,101 253,914
31.4% 35.1% 28.1% 30.0% 34.0%
76,807 74,106 71,109 55,405 69,940
11,432 11,456 10,556 10,492 9,503
11,323 11,410 10,816 10,509 9,568
22.47 21.39 18.99 18.34 18.69
10.51 42.42 26.65 22.63 27.00
0.45 0.42 0.42 0.41 0.41
-24.8% 59.2% 17.8% -16.2% 32.0%
4.3% 1.0% 1.6% 1.8% 1.5%
-20.5% 60.2% 19.4% -14.4% 33.5%

12
2008
EVENTS IN 2008
BUSINESS ACTIVITIES
• acquisition of Atag Europe, the Dutch provider of household appliances
• establishment of Gorenje Design Studio and the Gorenje Kazakhstan
company
• purchase of majority share in Publicus company
• opening of a showroom in Belgrade (Novi Beograd)
• opening of new distribution centre in Slovakia
• opening of new commercial and logistics complex in Warsaw, Poland
• launch of new generation of 600 mm stoves and ovens and 500 mm
hobs and stoves in Mora Moravia
• development of B-energy class dryer and launch of new Slim washing
machine with tank
• development of several new models of refrigerator-freezers.
FAIRS, EVENTS AND VISITS
• HomeAppliances@IFA 2008 fair, Berlin – »Made for iPod« refrigeratorfreezer
• visit of Slovenian President, Dr. Danilo Türk, who expressed satisfaction
with Gorenje’s innovativeness and development
• 10th Futura 2008 specialized electronics fair, Salzburg
• Gorenje Pininfarina Black designer collection presented at the headquarters
of Pininfarina Extra in Turin
• Gorenje Tiki at the M.C.E. fair in Milan
• ForArch international architectural and building fair, Czech Republic
• presentation of new products of the Atag, Pelgrim and Etna brands to
kitchen experts in the Netherlands
• opening of first zero carbon house with zero energy consumption on
French soil in cooperation with the Zero Energy Development (ZED)
factory based in England
• exhibition of refrigerator collection in the colours of the flags of
Slovenia, Czech Republic and EU on Europe Day
• 20 the Fashion Week in Moscow – new Gorenje Ora-Ïto White collection

13
AWARDS FOR DESIGN, INNOVATIVENESS AND BRAND NAMES
• BIO awards for design, 1979, 1996, 2002, 2006, 2008
• Plus X AwardTM, 2004, 2005, 2006, 2007, 2008
• Red Dot Design Award, 2005
• The Designer Manufacturer’s Award, 2006
• Golden Tie, 2006, 2008
• Observeur Design 08 Audience Award, 2007
• Wallpaper, selection, 2008
• Slovenian Chamber of Commerce awards for innovations, 2003, 2004,
2005, 2007, 2008
• Formatool medal, 2005, 2007
• Best Innovation Idea award at the Heureka! 06 show, 2006
• Get Connected Product of the Year Award, 2006
• Le Grand Prix de l’Innovation nomination, 2007
• Podium de l’Innovation, selection, 2008
• Trend, 2005
• Success Story, 2005
• Superbrands, 2006, 2007, 2008
• Trusted Brand, 2007, 2008
• Eurobrand, 2007, 2008
• China Home Style Award, 2008

14
2008
REPORT OF THE SUPERVISORY
BOARD OF GORENJE, d.d. ON THE
REVIEW OF THE 2008 ANNUAL
REPORT
Dear shareholders,
In 2008 the Supervisory Board supervised the business operation of Gorenje, d.d. and the Gorenje
Group within the scope of powers and authorizations bestowed by applicable legal regulations and
the Articles of Association of the Company, and performed other tasks within its competences.
The Supervisory Board, which is comprised of ten members, carried out its tasks in 2008 in the
following composition: Dr. Jože Zagožen as Chairman, Ivan Atelšek as Deputy Chairman, Peter
Ješovnik, M.Sc., Milan Podpečan, Andrej Presečnik, Gregor Sluga, M.Sc., Peter Kobal, Drago Krenker,
Krešimir Martinjak, and Jurij Slemenik.
1. ACTIVITIES OF THE SUPERVISORY BOARD
During the course of the year, the Supervisory Board devoted most of its attention to the business
and financial development of the Gorenje Group and the parent company, significant business
events, and to the implementation of general strategic and business policies. In 2008 the Supervisory
Board held seven meetings, of which one was a correspondence meeting.
In line with its established practice, the Supervisory Board adopted the business plan of the parent
company and the Gorenje Group in December 2007, i.e. before the beginning of the financial
year. Having thus determined the framework of its business goals for the year 2008, the Supervisory
Board monitored their implementation during the year. The Supervisory Board reported to the
Management Board, on a quarterly basis, on the current business operations and financial position
of the Gorenje Group and the parent company. The Management Board regularly and promptly informed
the Supervisory Board on the operating conditions, particularly the situation in world markets,
changes in the prices of materials and raw materials, hedging, and on the possibilities of expanding
the activities of the Gorenje Group in the area of its basic activity, i.e. home appliances, as
well as in other areas of its operation. The Supervisory Board has paid special attention to the working
capital management, especially inventories and receivables, which increased due to the strong
growth of the volume of sales, extend of sales in some markets, due to the entering into some new
markets and also due to the changed sales structure of home appliances. The Board stressed the
synergies, which they could be achieved between home appliances and home interior division, to
also achieve stronger sales of kitchen furniture, by competitive prices and better services. Important
place in the discussion had also the question of education and age structure of employees
and working conditions. The Supervisory Board has all these questions discussed from the point
of view of the globalisation and the economy growth, which was characteristic of the World economy,
as also of the purchasing power strengthening by end consumers, the Board also estimated,
that no longer is to be expected such a high growths several years running, because it is normal, to
calm down.
The first nine months of operation were marked by favourable sales trends, good cost management
(materials and raw materials), and relatively favourable profitability. With regard to the laws of
sales in the last quarter of the financial year, it was expected that the Company would fully achieve
the planned goals. But due to the significantly changed circumstances triggered by the world financial
crisis on an international scale and within the European framework, which is of paramount
importance for Gorenje, a sharp drop in orders occurred particularly in the last two months of
2008, leading to a decrease in production and substantial changes in operating conditions, espe-

15
cially in certain new EU member states, the Ukraine and Russia, some countries of South Eastern
Europe, as well as Scandinavia and England, where the decline in demand was accompanied by a
strong devaluation of local currencies and in some areas even general insolvency, which significantly
influenced the final business results of the parent company, Gorenje, d.d., and the Gorenje Group.
For this reason the Supervisory Board closely monitored the announced activities and measures
of the Management Board, which were strongly associated with managing the financial crisis and
its consequences. In such essentially changed circumstances, the Supervisory Board approved the
business plan for the year 2009.
The Supervisory Board devoted special attention to possibilities for external growth of the Company.
In the spring of 2008, the Supervisory Board was informed of the Management Board’s intention
to purchase the entire ownership share in the company ATAG Europe B.V., and consented that
the Company’s own shares be used to finance part of this acquisition on the basis of authorisation
granted by the General Meeting of Shareholders for the disposal of own shares.
In May 2008, the Supervisory Board discussed the earnings and new employment contracts of
members of the Management Board, who in 2008 began a new five-year term of office pursuant to
a resolution on appointment adopted in 2007. In determining the earnings of members of the Management
Board, the Supervisory Board duly observed the fact that the fixed basic salaries of members
of the Management Board had not changed since 2003, and for this reason raised the fixed
basic salaries of Management Board members. The Supervisory Board also assessed that it would
be necessary to modify and amend the Criteria for the Assessment of Business Performance of the
Gorenje Group from 2005, which serve as a basis for granting incentive remunerations to members
of the Management Board. For this purpose a working group was formed and instructed to
prepare a new proposal of criteria, which has not yet been discussed by the Supervisory Board. On
the proposal of the Management Board and in connection with the introduction of a 36-hour work
week for employees and the resulting 10% reduction of basic salaries of employees, the Supervisory
Board also reduced the monthly salaries of members of the Management Board by 10%.
Further in connection with the acquisition of ATAG Europe B.V., on 26 August 2008 the Supervisory
Board appointed Philip Alexander Sluiter to the Management Board. Mr. Sluiter was responsible
for the Benelux area, the supplementary program, and the ATAG brand name, but was recalled by
the Supervisory Board on 26 February 2009 at his own request.
In February of this year, the Supervisory Board approved, on the proposal of the President of the
Management Board, a new division of work between the members of the Management Board.
Franc Bobinac, President of the Management Board, is also responsible for the Ecology, Energy
and Services Division, Branko Apat is responsible for the Home Appliances Division, Franc Košec is
co-responsible for the Home Appliances Division and for the areas of industrial equipment and tool
& die making, Uroš Marolt is responsible for the Home Interior Division, while the areas of work of
Board members Mirjana Dimc Perko and Drago Bahun have remained unchanged.
In December 2008, the Supervisory Board adopted the fundamental position that it undertakes
not to propose the payment of any incentive remunerations to members of the Supervisory Board
for 2008, if the circumstances related to the Company’s business operation remain unchanged or
do not attain at least the figures recorded in the first six months of 2008. With respect to the 2008
Annual Report, on the proposal of the Management Board, the Supervisory Board did not decide
on the payment of incentive remunerations to members of the Management Board for 2008 because
the Management Board had renounced its right to remuneration as a sign of solidarity with
employees and in response to the strained economic situation.
2. ANNUAL REPORT
On 14 April 2009 the Management Board of the Company presented the audited Annual Report of
Gorenje, d.d. and the Gorenje Group for the Year 2008 to the Supervisory Board for approval. The
Supervisory Board discussed the Annual Report at its meeting held on 23 April 2009.

16
2008
The Annual Report of Gorenje, d.d. and the Gorenje Group for the year 2008 was audited by the
auditing company KPMG Slovenija, d.o.o.. The audit was also performed in all subsidiary companies
of the Gorenje Group. On 6 April 2009 the auditing company issued an unqualified opinion on
the Annual Report of Gorenje, d.d. and the Consolidated Annual Report of the Gorenje Group for
the Year 2008.
In December 2008, the Supervisory Board appointed an audit committee, which examined the Annual
Report for 2008 together with the auditor’s report and the letter to the management, and in
connection therewith presented its comments and opinion.
In reviewing the submitted Annual Report for the year 2008 and given the fact that it regularly
monitored the management and business operations of the Company and the Gorenje Group and
regularly discussed the operating results, financial position and assets, as well as the changed circumstances
in the markets where Gorenje is present, the Supervisory Board has assessed that:
• The business operation of the Company in 2008 was successful despite the unforeseen financial
crisis and recession in global markets. The Management Board’s responses to the signs of declining
economic growth in the second half of the year were timely and appropriate. Particularly important
was the Company’s open communication with the public in connection with the worsening
conditions for the sale of household appliances, as well as in connection with the activities
and policies of Gorenje’s management for the elimination of negative effects, which contributed
to an awareness of the actual situation in the narrow and broader environments and among employees;
• Although the Company did not attain all of its planned goals in 2008 due to the substantially
changed circumstances over which it had no control (sharp decline in demand for durable consumer
goods, devaluation of currencies, illiquidity of buyers or financial conditions in individual
countries, decline in the value of investments, whose consequence is the weakening of investments,
worsening of liquidity situation and inaccessibility of long-term financial sources, rise of interest
rates, etc.), it did operate more successfully than the majority of its competitors in the white
goods branch in the given circumstances.
The Supervisory Board has established that the Annual Report for 2008, as prepared by the Management
Board and reviewed by the auditing company, has been compiled clearly, transparently
and in accordance with the provisions of the Companies Act and applicable International Financial
Reporting Standards. The Supervisory Board has also examined and approved the Auditor’s Report,
and has no comments in connection therewith. On the basis thereof, the Supervisory Board
has assessed that the Annual Report presents a true and fair picture of the assets, liabilities, financial
position and operating results, and gives a fair account of the business development and position
of the Company and the Gorenje Group.
On the basis of the above-mentioned findings, the Supervisory Board approved, at its meeting held
on 23 April 2009, the Annual Report of Gorenje, d.d. and the Consolidated Annual Report of the
Gorenje Group for the Year 2008 as proposed by the Management Board.
3. DETERMINATION AND PROPOSED APPROPRIATION OF
ACCUMULATED PROFIT
In line with the Companies Act and the Articles of Association of Gorenje, d.d., the Management
Board of the Company decided that part of the net profit for the 2008 financial year shall be appropriated
for the creation of reserves for own shares in the amount of EUR 111,820.58 for the purpose
of repurchasing 7,969 own shares, for the creation of statutory reserves in the amount of
EUR 1,186,028.37, and for the creation of other revenue reserves in the amount of EUR 5,337,127.67,
which has been approved by the Supervisory Board.
The Supervisory Board has approved the proposal of the Management Board on the determination
of the Company’s accumulated profit for 2008, which amounts to EUR 35,062,963.38.

17
The Management Board and the Supervisory Board have proposed to the General Meeting of Shareholders
that the accumulated profit for the 2008 financial year in the amount of EUR 35,062,963.38
EUR be appropriated as follows:
• part of the accumulated profit in the amount of EUR 28,050,370.70 shall be used for the creation
of other revenue reserves,
• the remainder of accumulated profit in the amount of EUR 7,012,592.68 shall remain unappropriated.
In preparing the proposed resolution on the appropriation of accumulated profit for 2008, the
Management Board and the Supervisory Board acted in line with the long-term development
policy embodied in the strategic plan of the Gorenje Group; the current circumstances, which
are the consequence of the global crisis that has resulted in the reduction of orders, revenues
and, ultimately, profit, justify the proposal as presented. For the previously mentioned reasons,
the Management Board has also proposed that no dividend payments be made for 2008. The
Supervisory Board approved the Management Board’s proposal and emphasizes that it will only be
possible to overcome this crisis, which has deeply affected in particular that part of the economy
which exports almost all of its products, through the joint efforts of all players: the management of
the Company and its employees, who carry the burden of reduced salaries in real terms, as well as
with the support of owners.
The Supervisory Board further proposes to the General Meeting of Shareholders that the members
of the Management Board be discharged of their duties in 2008.
This report was prepared by the Supervisory Board in accordance with the provisions of Article 282
of the Companies Act (ZGD-1) and is addressed to the General Meeting of Shareholders.
Chairman of the Supervisory Board
Jože Zagožen Ph.D
Velenje, Slovenia, 23 April 2009

CORPORATE
GOVERNANCE

20
2008
1.1 ORGANIZATIONAL STRUCTURE
AND COMPOSITION OF THE
GORENJE GROUP
ORGANIZATIONAL STRUCTURE OF THE GORENJE GROUP BY DIVISIONS IN 2008
HOUSEHOLD APPLIANCES DIVISION
hereinafter, based on the new organisational structure:
HOME APPLIANCES DIVISION
Manufacture and sale of household appliances of own production, sale of products
from the complementary programme comprising household appliances of other manufacturers,
sale of supplementary programme comprising electronic and small household
appliances, as well as the manufacture and sale of heating-thermic appliances,
tool making, manufacture of industrial equipment and mechanical components.
HOME INTERIOR DIVISION
Manufacture and sale of kitchen and bathroom furnishings, sanitary equipment and
ceramic tiles.
TRADE AND SERVICES DIVISION
hereinafter, based on the new organisational structure:
ECOLOGY, ENERGY AND SERVICES DIVISION
Energy management and environmental protection, trade, engineering, agency services,
restaurant and catering services, tourism and real estate management.
CHANGES IN THE STRUCTURE OF THE GORENJE GROUP IN 2008
• On 15 January 2008 Gorenje, d.d. and Publicus, d.o.o. signed a letter of intent on
the acquisition of a 51% share in Publicus; the share acquisition was executed on 25
March 2008.
• On 5 February 2008 the companies Gorenje, Trimo, Riko and Pristop established, at
a constitutive general meeting of shareholders, a new company named Gorenje Design
Studio, d.o.o. Gorenje has a 52-percent ownership share in the new company,
with each of the other partners holding a 16-percent share.

21
• On 16 January 2008, Gorenje, d.d. established GORES, d.o.o., a real estate management
company.
• On 16 January 2008, Gorenje, d.d. established GORENJE PROJEKT, inženiring,
d.o.o. and is the full (100%) owner of this company.
• On 31 March 2008, Istrabenz Gorenje, d.o.o. established the company Vitales Nova
Gorica, d.o.o., whose principal activity is trading in refined biomass.
• On 16 April 2008, Gorenje, d.d. sold its 100% ownership share in Gorenje Imobilia
d.o.o. and GORES, d.o.o..
• On 22 April 2008, an agreement was signed on the acquisition of a share in Avtomatizacija,
d.o.o.. Following its entry in the court register, the company was renamed
Istrabenz Gorenje Avtomatizacija procesov, d.o.o., and is fully (100%) owned by
Istrabenz Gorenje, d.o.o..
• On the basis of a share transfer agreement concluded on 25 April 2008, Gorenje,
d.d. purchased a 26-percent share in ECONO Projektiranje, d.o.o. from the company
ERICo, d.o.o.
• On 2 May 2008, Gorenje, d.d. sold its 100% ownership share in Gorenje Adria Nekretnine,
d.o.o. to the company GORES, d.o.o..
• Pursuant to an agreement on the purchase of a 100% share in the Dutch company
ATAG Europe B.V. concluded on 10 June 2008 with the seller Home Products Europe
B.V., Gorenje, d.d. paid part of the purchase price in the form of own shares on
26 June 2008. Pursuant to the previously mentioned agreement and in line with the
resolution of the General Meeting of Shareholders adopted on 4 July 2005, Gorenje,
d.d. alienated 1,070,000 of its own shares bearing the designation GRVG in favour
of Home Products Europe B.V., which represents 7.6265% of all voting rights in
Gorenje, d.d.. At the time of share disposal, the price of the GRVG share amounted to
€36.83, which is equal to the half-year average daily price of shares on the Ljubljana
Stock Exchange. In accordance with the agreement of 27 June 2008, Gorenje, d.d.
has a controlling influence over the entire business operation of this company as of
1st July 2008. As of this date, the Company is obliged to include the acquired company
in the consolidated financial statements of the Gorenje Group.
• Gorenje Notranja oprema has, with the purchase of a capital share in the company
Radolad from Kiev and a subsequent, contractually agreed capital increase in the
said company, acquired a 70% ownership share in the company and changed its
name to Gorenje Kuhinje Kiev.
• On the basis of a paid cash contribution, Istrabenz Gorenje, d.o.o. acquired a 50%
share in ING Projekt, d.o.o. by Decision of the District Court of Ljubljana, no. Srg
2008/24505 of 3 July 2008. Under the same decision, the company was renamed
to ISTRABENZ GORENJE PROJEKT, svetovanje, projektiranje, inženiring, d.o.o..
• On 22 July 2008 the registration procedure of the company Gorenje Kazakhstan
TOO was completed. The company is fully (100%) owned by Gorenje Beteiligungsgesellschaft
mbH.
• In line with a resolution adopted by the Supervisory Board on 16 July 2008, the
Istrabenz Gorenje Group was expanded to include the company BPC, d.o.o..
• Gorenje, d.d. sold its 100% share in GORES, d.o.o. by the conclusion of a share sale
agreement signed on 22 August 2008. By virtue of this agreement, GORES, d.o.o.
and the companies Gorenje Imobilia d.o.o. and Gorenje Adria Nekretnine are no
longer members of the Gorenje Group.

22
2008
• On 10 November 2008, the company Vitales Čakovec d.o.o. was established and is
fully (100%) owned by Istrabenz Gorenje, d.o.o.
• On 10 November 2008, the company »Euro Lumi & Surovina« SH.P.K, Kosovo was
established and is mainly engaged in the recycling of wastes. The company’s 51%
owner is Surovina, d.d..
• On 17 November 2008 the company Vitales Energie Biomasse Italia S.R.L. was
established. Its 51% owner is Istrabenz Gorenje.
• On 24 November 2008 the company RVT, d.o.o. merged with Surovina, d.d..
In addition to the holding company, the Gorenje Group was comprised of the following
subsidiary and jointly controlled companies:
HA
home
appliances
HI
home
interior
EES
ecology,
energy and
services
Companies operating in Slovenia Ownership share (%) Division
Gorenje I.P.C., d.o.o., Velenje 100.00 HA
Gorenje Tiki, d.o.o., Ljubljana 99.982 HA
Gorenje GTI, d.o.o., Velenje 100.00 EES
Gorenje Notranja oprema, d.o.o., Velenje 99.98 HI
Gorenje Gostinstvo, d.o.o., Velenje 100.00 EES
LINEA SP, d.o.o., Velenje 100.00 EES
ENERGYGOR, d.o.o., Velenje 100.00 EES
KEMIS, d.o.o., Radomlje 100.00 EES
Gorenje Orodjarna, d.o.o., Velenje 100.00 HA
ZEOS, d.o.o., Ljubljana 51.00 EES
ISTRABENZ GORENJE, d.o.o., Nova Gorica 49.344 EES
GEN-I, d.o.o., Krško 24.67 EES
Istrabenz investicijski inženiring, d.o.o., Nova Gorica 49.344 EES
SUROVINA, d.d., Maribor 51.00 EES
INDOP, d.o.o., Šoštanj 100.00 EES
ERICo, d.o.o., Velenje 51.00 EES
Istrabenz Gorenje inženiring, d.o.o., Ljubljana 49.344 EES
Gorenje Projekt, d.o.o., Ljubljana 100.00 EES
Gorenje design studio, d.o.o., Velenje 52.00 HA
Vitales Nova Gorica, d.o.o., Nova Gorica 49.344 EES
PUBLICUS, d.o.o., Ljubljana 51.00 EES
IG AP, d.o.o., Kisovec 49.344 EES
Istrabenz Gorenje Projekt, d.o.o., Trbovlje 24.67 EES
BPC, d.o.o., Solkan 49.344 EES
Companies operating abroad Ownership share (%) Division
Gorenje Beteiligungsgesellschaft m.b.H., Austria 100.00 HA
Gorenje Austria Handelsgesellchaft m.b.H., Austria 100.00 HA
Gorenje Vertriebsgesellschaft m.b.H., Germany 100.00 HA
Gorenje Körting Italia S.r.l., Italy 100.00 HA
Gorenje France S.A.S., France 100.00 HA
Gorenje BELUX S.a.r.l., Belgium 100.00 HA
Gorenje Espana, S.L., Spain 100.00 HA
Gorenje UK Ltd., Great Britain 100.00 HA
Gorenje Skandinavien A/S, Denmark 100.00 HA
Gorenje AB, Sweden 100.00 HA
Gorenje OY, Finland 100.00 HA
Gorenje AS, Norway 100.00 HA
OÜ Gorenje, Estonia 100.00 HA
SIA Gorenje, Latvia 100.00 HA
Gorenje spol. s r.o., Czech Republic 100.00 HA
Gorenje real spol. s r.o., Czech Republic 100.00 HA
Gorenje Slovakia s.r.o., Slovakia 100.00 HA

23
Gorenje Budapest Kft., Hungary 100.00 HA
Gorenje Polska Sp. z o.o., Poland 100.00 HA
Gorenje Bulgaria EOOD, Bulgaria 100.00 HA
Gorenje Zagreb, d.o.o., Croatia 100.00 HA
Gorenje Skopje, d.o.o., Macedonia 100.00 HA
Gorenje Commerce, d.o.o., Bosnia & Herzegovina 100.00 HA
Gorenje, d.o.o., Serbia 100.00 HA
Gorenje Podgorica, d.o.o., Montenegro 99.972 HA
Gorenje Romania S.R.L., Romania 100.00 HA
Gorenje aparati za domaćinstvo, d.o.o., Serbia 100.00 HA
Mora Moravia s r.o., Czech Republic 100.00 HA
Gorenje Küchen GmbH, Austria 99.98 HI
Gorenje - kuchyně spol. s r.o., Czech Republic 99.98 HI
Kemis-Termoclean, d.o.o., Croatia 100.00 EES
Kemis - BH, d.o.o., Bosnia & Herzegovina 100.00 EES
Gorenje Invest, d.o.o., Serbia 100.00 HA
Gorenje Gulf FZE, United Arab Emirates 100.00 HA
Gorenje Tiki, d.o.o., Serbia 99.982 HA
GEN-I Zagreb, d.o.o., Croatia 24.67 EES
Intrade energija, d.o.o., Bosnia & Herzegovina 25.17 EES
Vitales, d.o.o., Nova Bila, Bosnia & Herzegovina 49.344 EES
Gorenje Istanbul Ltd., Turkey 100.00 HA
Sirovina, a.d., Serbia 51.00 EES
Gorenje TOV, Ukraine 100.00 HA
Vitales, d.o.o., Bihać, Bosnia & Herzegovina 24.67 EES
GEN-I, d.o.o, Serbia 24.67 EES
Vitales, d.o.o., Sokolac, Bosnia & Herzegovina 24.67 EES
ST Bana Nekretnine, d.o.o., Serbia 100.00 EES
GEN-I Budapest, Kft., Hungary 24.67 EES
Kemis d.o.o. Valjevo, Serbia 100.00 EES
Kemis – SRS d.o.o., Bosnia & Herzegovina 100.00 EES
ATAG Europe BV, the Netherlands 100.00 HA
ATAG Nederland BV, the Netherlands 100.00 HA
ATAG België NV, Belgium 100.00 HA
ATAG Financiele Diensten BV, the Netherlands 100.00 HA
ATAG Financial Sevices BV, the Netherlands 100.00 HA
Intell Properties BV, the Netherlands 100.00 HA
ATAG Special Product BV, the Netherlands 100.00 HA
Gorenje Holding B.V., the Netherlands 100.00 HA
Gorenje Kazakhstan, TOO, Kazakhstan 100.00 HA
Gorenje kuhinje, d.o.o., Ukraine 69.986 HI
Vitales Energie Biomasse S.R.L., Italy 25.17 EES
Vitales Čakovec d.o.o., Croatia 49.344 EES
»Euro Lumi & Surovina« SH.P.K., Kosovo 26.01 EES
HA
home
appliances
HI
home
interior
EES
ecology,
energy and
services
Representatives offices of Gorenje, d.d. abroad: Moscow (Russian Federation), Krasnoyarsk
(Russian Federation), Kiev (Ukraine), Athens (Greece), Shanghai (China), and
Almaty (Kazakhstan).

24
2008
1.2 CORPORATE GOVERNANCE
STATEMENT
In the area of corporate governance, Gorenje, d.d. and the Gorenje Group have introduced
high standards which we consistently observe and implement. Adhering to and
surpassing the prescribed, recommended and agreed standards are our permanent
tasks. The high level of transparency of business operations and sound communications
with shareholders and other participants have already been recognised as values
of Gorenje in the community. For this reason we are continuously improving and upgrading
the attained level according to the principle of best practices.
I. Compliance with the Corporate Governance Code for Joint Stock Companies
The Management Board and the Supervisory Board of the Company hereby declare
that Gorenje, d.d. observes the Corporate Governance Code for Joint Stock companies
in its work and operations, except in the cases disclosed below together with relevant
explanations:
C h a p t e r 1 . R e l a t i o n s h i p b e t w e e n t h e C o r p o r a t i o n ,
Shareholders and other Stakeholders
1.1. Company goals
Recommendation under item 1.1.1.: The key goals of the Company are not
specifically defined in the Articles of Association, but are included and clearly defined
in the mission of the Company: »To create original, technically perfected, superiorly
designed, as well as user- and environment-friendly products for the home. We are
focused on improving the satisfaction of customers while creating value for our owners,
employees and other stakeholders of the Gorenje Group in a socially responsible
manner.«.
1.3. General Meeting of Shareholders
Recommendation under item 1.3.19.: According to the current practice, the
General Meeting of Shareholders adopts resolutions on discharges of the Management
and Supervisory Boards jointly. Given the established work practices and the
recognized high standards of cooperation between these two bodies in jointly addressing
issues relevant for the Company and its development, the legally prescribed
equal treatment of duties and responsibilities of their members and the attained level
of trust, this has proved to be appropriate in practice. Furthermore, the members
of the Management Board and the Supervisory Board who are also shareholders and
participate in general meetings may vote on resolutions on their discharge. Considering
the small number of shares held by these members, the limitation of voting rights
in practice has no major relevance. Therefore, in the given circumstances the Company
does not plan on introducing any such limitation of voting rights and allows shareholders
to decide on such matters at their discretion.
Chapter 2. Management Board
2.3. Remuneration, compensation and other benefits, and the ownership of company
shares
Recommendations under items 2.3.2. to 2.3.3.: In connection with the
policy of determining the remunerations, compensations and other benefits of the

25
members of the Management Board, the Supervisory Board fully observes the principles
and criteria of the Code. The Supervisory Board assesses the performance of
the Management Board as a whole on the basis of the Criteria for the Determination
of Corporate Performance of the Gorenje Group, which were adopted for this purpose
by the Supervisory Board of the Company and have so far proved to be appropriate
in practice.
Chapter 3. Supervisory Board
3.1. Duties and responsibilities
Recommendation under item 3.1.10.: The Supervisory Board evaluates the
performance of the Supervisory Board as a whole and not of its individual members.
The Supervisory Board generally meets in its full composition and all of its members
regularly participate in discussions and in this way contribute to the integral performance
of the Supervisory Board in accordance with their responsibilities, professional
and other experience. The Company has therefore assessed that individual evaluations
are not necessary.
3.4. Remuneration, compensation and other benefits, and ownership of the
Company’s shares
Recommendation under item 3.4.1.: For their work, the members of the
Supervisory Board are entitled to meeting attendance fees and the reimbursement
of expenses for meeting attendance. The members of the Supervisory Board are
also entitled to remuneration for their performance in the form of profit sharing, if so
decided by the General Meeting of Shareholders, which has proved to be appropriate
in practice.
3.6. Formation of supervisory board committees
Recommendation under items 3.6.1. to 3.6.6.: 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. Otherwise, the Supervisory Board deals with all issues
within its competences without forming any special committees, as this as 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 7. Audit and the System of Internal Control
7.1. External auditors
Recommendation under item 7.1.5.: The audit of the financial statements of
Gorenje, d.d. has been conducted by the selected auditing company, KPMG Slovenija,
d.o.o., for more than 5 years. However, the composition of the audit group auditing the
annual report of the Company has changed several times in this period.
This statement and the disclosure of deviations and their explanations relate to the
provisions of the Corporate Governance Code for Joint Stock Companies, which was
jointly phrased and adopted by the Ljubljana Stock Exchange, Inc., Ljubljana, the
Association of Supervisory Board Members of Slovenia, and the Managers’ Association
of Slovenia on 18 March 2004, which agreed on and adopted amendments thereto on
14 December 2005 and on 5 February 2007. The Code is accessible on the website of
the Ljubljana Stock Exchange (www.ljse.si) in the Slovene and English languages.

26
2008
The contents of this Statement comprise the period from the adoption of the previous
Statement of Compliance with the Corporate Governance Code for Joint Stock Companies,
i.e. from April 24 2008 to 23 April 2009, when its contents were jointly phrased
and adopted by the Management Board and the Supervisory Board of Gorenje, d.d..
II. Internal Control and Risk Management System
An independent support function has been formed within the Gorenje Group – Internal
Audit, which operates within the controlling company Gorenje, d.d. and at the
Group level. The persons in charge of Internal Audit are directly responsible to the
Management Board of the Company. The fundamental task of Internal Audit is to continuously
develop and monitor the functioning of the internal control system from
the aspect of managing of all types of operating and other risks to which the Gorenje
Group is exposed. Internal Audit regularly conducts the audit reviews of all key business
processes in the holding company and Group companies with the aim of ensuring
the compliance of business operations with regulations, the accounting policies of
the Gorenje Group, and internal rules, as well as the reduction of all types of risks. In
2007 an external review of the quality of internal auditing activities was performed,
which established the compliance of the these activities with the International Standards
for the Professional Practice of Internal Auditing.
A Risk Management Council operates within the Gorenje Group with the task of identifying
and assessing the risks to which the Gorenje Group is exposed, and planning
measures for their reduction or elimination. Three committees operate within the Risk
Management Council: a business risk committee, a financial risk committee and an operating
risk committee. The risk management system is presented in more detail in the
chapter on risk management.
III. Other Data (as at 31 December 2008):
a. On the significant direct and indirect ownership of securities of the Company with
respect to attaining a qualified share as specified by the law regulating takeovers:
Kapitalska družba pokojninskega in invalidskega zavarovanja, d.d., Ljubljana (pension
fund), together with the funds it manages 3,653,210 shares or 26.0386 %
Home Products Europe B.V., Velp, the Netherlands 1,070,000 shares or 7.6265 %
INGOR, d.o.o., & co. k.d., Ljubljana (a company established by the broader management
of the Gorenje Group) 782,056 shares or 5.5742 %
KD Group, d.d., Ljubljana, together with the funds its manages, and Adriatic Slovenica,
d.d. together with the long-term business fund 1,263,295 shares or 9.0042 %
b. On the holders of securities conferring special controlling rights:
Gorenje, d.d. is not the issuer of any shares conferring their holders any special controlling
rights.
c. On limitations of voting rights:
Gorenje, d.d. does not have any shareholders whose voting rights are limited by
statute, law or in any other way. The condition for participating in general meetings and
exercising voting rights is that a shareholder is required to register his/her attendance
at a general meeting with the company’s Management Board in writing three days
prior to the date of the meeting.

27
d. On the Company’s rules on the appointment and replacement of members of
managerial and supervisory bodies:
The Management Board of the Company is appointed and recalled by the Supervisory
Board, which determines the number and areas of work of individual members
of the Management Board in a relevant resolution. The members of the Management
Board are elected for a term of five years and may be re-elected. The Management
Board is comprised of the President and at least two members, one of whom is the
Work Director. The Supervisory Board may recall the members of the Management
Board prior to the expiry of their term of office. The Management Board’s term of office
expires on 18 July 2013.
The Company has a Supervisory Board comprised of ten members. The persons
elected to the Supervisory Board may be experts in the fields of industry and commerce
and other related activities. Five members of the Supervisory Board representing
the interests of employees are elected by the Workers’ Council in line with the
Worker Participation in Management Act and the general acts of the Workers’ Council.
The Workers’ Council is obliged to notify the General Meeting of Shareholders of
its appointment. The members of the Supervisory Board may only be appointed in
the absence of obstacles specified in the Companies Act. The members of the Supervisory
Board are elected for a term of four years and may be re-elected without limitations.
A proposal for the election of members of the Supervisory Board representing
the interests of shareholders is presented by the transitional Supervisory Board. A
member of the Supervisory Board may be recalled prior to the expiry of his/her term
of office. The recall shall be decided by the General Meeting with a 3/4 majority of
votes cast. The members of the Supervisory Board representing the interests of employees
are discharged by the Workers’ Council in line with the Worker Participation
in Management Act and the general acts of the Workers’ Council. Substitute elections
for members of the Supervisory Board shall be held for the remainder of the Supervisory
Board’s term, unless the General Meeting decides otherwise in a special resolution.
The term of office of the Supervisory Board expires on 18 July 2010.
e. On the Company’s rules regulating amendments to the Articles of Association:
Resolutions on amendments to the Company’s Articles of Association are adopted by
the General Meeting in accordance with the law.
f. On authorisations granted to members of the Management Board, particularly for
the issue or purchase of own shares:
The authorisations of the Management Board as set forth in the Company’s Articles
of Association are: The President and members of the Management board be present
the Company independently and without limitations. As representatives of the Company,
the members of the Management Board observe the relations between Board
members as laid down in the Rules of Procedure of the Management Board. The Work
Director is a member of the Management Board who acts on behalf of and represents
the interests of employees with respect to human resources and social issues,
but does not have authorisations to represent the Company, except in cases when a
member of the Management Board is appointed Work Director. Member of the Management
Board and Work Director Drago Bahun is authorised to represent the Company.
The Management Board adopts resolutions within the scope of its powers with
an ordinary majority vote of all members. Each member of the Management Board
is entitled to one vote. In case of a tied vote, the vote of the President of the Management
Board is decisive.
Authorisation to the Management Board of the Company for the acquisition and
disposal of own shares, adopted at the 12th general meeting of shareholders held
on 11 June 2008, with the following resolution:
The General Meeting of Shareholders grants the Company an authorisation for the
acquisition of own shares, as follows:

28
2008
a. the authorisation for the acquisition of own shares shall be valid for 18 months after
the date of issue;
b. the authorisation applies to the acquisition of own shares up to a total amount of
1,403,000 shares of the Company, which represents 10% of the Company’s share
capital and includes own shares already owned by the Company on the date of issue
of this authorisation;
c. in the event of acquiring shares through dealings on the organised capital market,
the Company may acquire its own shares at their current market price;
d. If the Company does not acquire shares through dealings on the organised capital
market, the price of a share thus acquired may not be lower than the carrying
amount of such share determined on the last day of the year preceding the acquisition,
and may not exceed a price that is higher than the average daily price of the
Company’s shares in the past 12 months before the date of the general meeting at
which a relevant resolution was adopted thereon, increased by not more than 25%.
e. the Company may utilise the shares acquired by virtue of this and previous authorisations
for the following purposes and under the following conditions:
• in exchange for minority interests in the subsidiaries of the Gorenje Group,
• in exchange for interests in other companies engaged in activities identical to
the principal activities of the Gorenje Group on the basis of prior approval of the
Supervisory Board of the Company, or
• for possible sale to a strategic partner engaged in activities identical to the principal
activities of the Gorenje Group on the basis of prior approval of the Supervisory
Board of the Company.
f. the pre-emptive right shall be excluded in the alienation of shares, if the shares are
disposed for the purposes and under the conditions specified in this authorisation;
g. the Management Board shall, at the first next general meeting after the date of
a possible alienation of own shares, inform shareholders on the disposal of own
shares and present the opinion of an independent financial advisor on the justness
of the disposal of own shares from the Company’s perspective.
IV. General Meeting and Rights of Shareholders
The share capital of the Company amounts to EUR 58,546,152.56 and is divided into
14,030,000 ordinary, freely transferrable, registered, no par value shares. All shares
have been fully paid in. All shares are of the same class and are issued in dematerialized
form. In accordance with applicable laws and implementing regulations, the
shares are entered in the central register of the Central Securities Clearing Corporation,
Ljubljana. The rights attached to shares may be transferred by reposting in the
central register of the Central Securities Clearing Corporation, Ljubljana. Only persons
entered in the share register kept for the Company by the Central Securities Clearing
Corporation, Ljubljana shall be deemed shareholders.
A share entitles its holder to one vote at general meetings of shareholders, a
proportional part of the accumulated profit distributed among shareholders
(dividends), and a proportional part of the property remaining from the bankrupt’s or
liquidation estate in the event that a bankruptcy or liquidation procedure is initiated
against the Company.
The Company may acquire its own shares under the conditions specified by law and
on the basis of authorisation granted to the Management Board of the Company for
the acquisition and disposal of own shares under item III.f.
The shareholders exercise their rights at general meetings of shareholders, where
they adopt resolutions on the articles of association and any amendments thereto, the
appropriation of accumulated profit and the granting of discharges to the members

29
of the Management and Supervisory Boards, the annual report in the cases specified
by law, measures for increasing and decreasing the share capital, the appointment of
an auditor, the appointment and recall of members of the Supervisory Board, changes
in status and termination of the Company, as well as on any other matters specified
by law or the articles of association.
In deciding on the appropriation of accumulated profit, the General Meeting of Shareholders
is bound to observe the approved annual report.
The General Meeting of Shareholders decides on the approval of the annual report
only in cases when it has not been approved by the Supervisory Board, or when the
Management Board and the Supervisory Board leave the decision on the approval of
the annual report to the General Assembly of Shareholders. In such cases, the relevant
resolutions of the Management Board and Supervisory Board are to be specified in
the report submitted by the Supervisory Board to the General Meeting of Shareholders.
If the General Meeting of Shareholders makes any changes in the compiled annual
report, which is to be audited in accordance with the provisions of applicable law,
the report shall be repeatedly reviewed by the auditor within two weeks after being
approved at a general meeting.
General meetings are convened by the Management Board in accordance with
applicable law. The Management Board also convenes general meetings at the request
of the Supervisory Board or on the written request of shareholders jointly holding
at least 1/20 (one twentieth) of the share capital. The shareholders’ request is to
specify the purpose and reasons for convening a general meeting. General meetings
are conducted by the Chairman, who, on the proposal of the convener, is elected by
shareholders with an ordinary majority vote.
General meetings are generally convened once a year at the Company’s head office
or at another location, if so decided by the Management Board of the Company. Notice
of a general meeting is to be published at least one month prior to the date of
the general meeting in the DELO newspaper. The notice must specify the agenda and
proposed resolutions under individual items of the agenda. The materials for general
meetings are available for inspection at the head office of the Company.
A shareholder who intends to participate in a general meeting and exercise his/her
voting right shall be required to register his/her attendance at the general meeting
with the Management Board in writing at least three days prior to the date of the general
meeting. A shareholder exercises his/her voting right alone or directly through
his/her lawful representative or proxy, to whom a relevant authorisation has been
granted by the shareholder. The costs of participation in general meetings are covered
by shareholders themselves.
The General Meeting of Shareholders adopts resolutions with a majority of votes cast,
except in cases when a different majority of votes cast is required by law or the articles
of association for a particular resolution, or in deciding on the represented share
capital.
The Company provides for the equal informing of shareholders and the public in
announcements posted in electronic form on the website of the Ljubljana Stock
Exchange in accordance with its rules and instructions, and on the web pages of the
Company (www.gorenje.com) in the Slovenian and English languages. The Company
also publishes announcements in the DELO daily newspaper, which is issued in the
entire territory of the Republic of Slovenia, whenever this is expressly required by
applicable law or other regulations.

30
2008
V. Management and Supervisory Bodies (as at 31 December 2008)
Management
Board:
Franc Bobinac President
Branko Apat member, responsible for complementary programmes, purchasing
and logistics
Drago Bahun member, responsible for organisation and human resources, and
Workers Director
Mirjana Dimc Perko member, responsible for finance and economics
Franc Košec member, responsible for development and quality
Uroš Marolt member, responsible for marketing and sales
Philip Alexander Sluiter members, responsible for the Benelux area, supplementary
programme, and ATAG brand name.
On 12 February 2009 the Supervisory Board approved, on the proposal of the Management
Board, a new division of work among the members of the Management
Board, which, alongside internal organizational changes, will contribute to the greater
transparency of operations, better management of all business activities of the Gorenje
Group, and strengthen the focus on individual strategic segments of business operation.
The Supervisory Board thus decided that Franc Bobinac, President of the
Management Board, shall also be responsible for the Ecology, Energy and Services
Division, Branko Apat shall be responsible for the Home Appliances Division,
Franc Košec shall be co-responsible for the Home Appliances Division and for the
areas of industrial machinery and tool making, and Uroš Marolt shall be responsible
for the Home Interior Division, while the areas of work of Board members Mirjana
Dimc Perko, Drago Bahun and Philip Alexander Sluiter shall remain unchanged. On
26 February 2009 the Supervisory Board accepted the resignation of Board member
Philip Alexander Sluiter and recalled him as member of the Management Board.
The members of the Management Board are also members of the bodies of certain
associations and unions. Franc Bobinac is also a member of the Supervisory Board of
ETI, d.d., Izlake. Mirjana Dimc Perko is a member of the Supervisory Board of Skupna
pokojninska družba, d.d. (pension insurance company) and of the company RSG Kapital,
upravljanje tveganje premoženja, d.o.o., and Drago Bahun is a member of the Supervisory
Board of Pošta Slovenije (Slovenian Postal Company).
Supervisory Board
Audit Committee
Representatives of capital
Dr. Jože Zagožen Chairman
Peter Ješovnik, M.Sc. member
Milan Podpečan member
Andrej Presečnik member
Gregor Sluga, M.Sc. member
Milan Podpečan Chairman
Peter Ješovnik, M.Sc. member
Gregor Sluga, M.Sc. member
Drago Krenker member
Mateja Vrankar external member
Employee-elected representatives
Ivan Atelšek Deputy Chairman
Peter Kobal member
Drago Krenker member
Krešimir Martinjak member
Jurij Slemenik member
The members of the Supervisory Board of the Company are also members of some
other supervisory boards. Peter Ješovnik, M.Sc., is a member and Deputy Chairman of
the Supervisory Board of NLB, d.d.. Andrej Presečnik is a member of the Management
Board of Kapitalska zadruga, which is the majority shareholder of Deželna banka Slovenije,
d.d., and is also a member of the Supervisory Board of Ljubljanske mlekarne, d.d.
Velenje, 23 April 2009
Management Board
President of the Management Board
Franc Bobinac
Supervisory Board
Chairman of the Supervisory Board
dr. Jože Zagožen

31
1.3 STATEMENT OF MANAGEMENT
RESPONSIBILITY
The Management Board of the Company is responsible for the preparation of the annual report of Gorenje, d.d.
and the Gorenje Group, as well as the financial statements, in a manner providing the public with a fair presentation
of the financial position and the results of operations of Gorenje, d.d. and its subsidiaries in 2008.
The Management confirms that the accepted accounting policies have been used in the compilation of financial
statements of Gorenje, d.d. and the Gorenje Group, that the accounting estimates have been made in compliance
with the principles of prudence and good management, and that the financial statements of the Company
and the Group give a true and fair view of the financial position of the Company and the results of its operations
in 2008.
The Management Board is also responsible for adequate and orderly accounting and the adoption of appropriate
measures for safeguarding the Company’s property and other assets, and confirms that the financial statements
of Gorenje, d.d. and the Gorenje Group and accompanying notes have been prepared under the assumption of
going concern and in compliance with applicable legislation and the International Financial Reporting Standards
as adopted by the European Union.
The President and members of the Management Board of Gorenje, d.d. are familiar with the contents of integral
parts of the annual report of Gorenje, d.d. and the Gorenje Group for 2008, and thus also with the entire annual
report. We agree with the annual report and hereby confirm this with our signatures.
Members of the Management Board
Mr. Franjo Bobinac, President
Mrs. Mirjana Dimc Perko, member
Mr. Branko Apat, member
Mr. Drago Bahun, member
Mr. Uroš Marolt, member
Mr. Franc Košec, member

VISION, MISSION AND
STRATEGIC OBJECTIVES
OF THE GORENJE GROUP

34
2008
Owing to the intensively changing conditions of operation (acquisition of Atag,
strengthening of the Ecology, Energy and Services Division in the areas of energy and
environmental management, the need for business consolidation of the Home Interior
Division), the Company embarked on the strategic restructuring of the Gorenje
Group.
The first step was of a processional and organizational nature, and was already
implemented in the first quarter of 2009 with the transition to a true division-type
organizational structure. From the processional aspect, we have surpassed the legalformal
organizational aspect of integrating the activities of individual companies in a
division. The new approach involves the integration of activities and not legal persons/
companies.
The new organizational structure of the Gorenje Group is as follows:
GORENJE GROUP – DIVISIONS
HOME APPLIANCES
HOME INTERIOR
ECOLOGY,
ENERGY AND
SERVICES
1. REFRIGERATOR &
FREEZERS
2. COOKING APPLIANCES
3. WASHING MACHINES &
DRYERS
• Complementary and
supplementary programmes
• Components
• Industrial machinery and
toolmaking
• Water heaters, radiators
• Kitchens
• Other furnishings
• Ceramics
• Bathrooms
• Environmental
protection and
recycling
• Energy management
• Trade, agency services,
engineering
• Catering and tourism
• Real estate
management
Our PERFECTED VISION is to become a cost-effective, most original, design-oriented
creator of products for the home, with an effective organization stimulating innovativeness
and enabling the attainment of operating results on the level of 5% revenues
and at least EUR 50,000 of added value per employee.
We are preserving our MISSION, which is to create original, technically perfected,
superiorly designed, user- and environment-friendly products for a comfortable home.
We are focused on increasing customer satisfaction while creating value for owners,
employees and other stakeholders of the Gorenje Group in a socially responsible
manner.
To achieve our vision and mission, we are focusing our business activities on the
following FOUR BASIC STRATEGIC OBJECTIVES:
1. enhancing the sale of higher priced products and services, products and services
with high margins in our main activities (home appliances and home interior)
through a system approach to brands, innovations and design;
2. enhancing the transfer of operations into environments at lower cost, reducing
the costs of overhead expenses (outside of direct manufacturing activities) in
the added value of our main activities, and increasing the product economy of
volume while reducing its complexity;

35
3. intensifying expansion to areas with higher yields than the average attained by
Slovenian companies from the TOP101 group;
4. directing sales to markets with at least double the growth rate of the average international
gross domestic product.
An important integral part of pursuing our vision, mission and strategic objectives are
the VALUES that we foster in performing our activities: Probity, Openness, Loyalty,
Creativity and Ambition. With the changes in our strategic plan, we have added two
new values: self-responsibility and effectiveness.

BUSINESS
REPORT

38
2008
3.1 ECONOMIC AND POLITICAL
CONDITIONS
THE WORLD
• Considerable slowdown of world economic growth, which was 2.2% in 2008
according to IMF data.
• The negative turnaround was intensified by rapidly rising prices of oil and primary
(agricultural) raw materials and the onset of the crisis.
• In 2009, OECD forecasts a 2.75% decrease in world economic growth and a world
trade volume of 10-15%.
• Lowest levels of crude oil prices in the past four years.
• At the start of the year, the price of a 159-litre barrel was approx. USD 100, at year
end less than USD 40.
• At the beginning of 2009, prices are stable and slightly above 40 USD/barrel.
• On all major international stock exchanges, investors concluded the year with enormous
losses. On an annual level, share values dropped sharply.
EUROPEAN UNION
• Economic growth slowed down in 2008 both in the euro area (0.8%) and in EU as
a whole (0.9%).
• The slowdown of economic growth was enhanced by the consequences of the
financial crisis, which spread to other economic sectors due to stricter lending
conditions and more expensive loans, as well as the diminishing trust between
business subjects.
• According to OECD forecasts, economic growth in EUR is expected to take an upward
turn in the second half of 2009.
• Inflation pressures are diminishing rapidly. According to Eurostat data, the inflation
rate in December 2008 was 2.2%, in the euro area 1.6%.
• Inflation pressures will continue to decline in 2009 due to falling prices of goods, rising
unemployment, and the decline of GDP.
• Weakening of the euro against the US dollar in the last months of 2008 due to
changed expectations regarding future economic activities in the USA, the euro
area, and the United Kingdom.
• Strengthening of the euro in December 2008, achieving 1.47 dollars per euro on a
yearly average, which is 7.3% more than in 2007.
• ECB decreased its key interest rate from 4.25% in November 2008 to 2.5% in
December 2008, and then to 1.5% in March 2009.
• Reduction of Euribor (basis for determining loan expenses).

39
SLOVENIA
• Considerable slowdown of economic growth, which dropped to 3.5% in 2008.
• Markedly lower economic growth forecasted for the 2009-2010 period due to
further weakening of export and investment activities.
• 3.3% growth of exports due to sharp fall in foreign demand (automobile industry).
• Anticipated lower growth of exports to new EU member states, ex-Yugoslav countries,
and the Russian Federation.
• Anticipated slowdown in growth of service exports (transport and tourism).
• Negative impacts on domestic investment activities, particularly in industry.
• Inflation at the end of 2008 reached 2.2%, the yearly average was 5.7%.
• The anticipated inflation rate in 2009 is 3%, and is expected to stabilize in 2010 on a
long-term, balanced level of 3 percent.
• The consequences of the financial crisis are visible primarily on the Stock Exchange.
The lending activities of domestic banks are below the 2007 average, but keep
levelling off on the inter-year level.
• Strengthened borrowings of companies abroad, borrowings of banks are slowing
down.
• The reduction of Euribor leads to the reduction of monthly instalments for
borrowings with variable interest rates, and to the reduction of interest rates for
new borrowings.

40
2008
3.2 SALES AND MARKET POSITION
SHARP FALL IN MARKET DEMAND
• In past years, the number of households and the average buying power were on
the rise, and the number of home appliances in households were growing steadily.
In past months, there has been a sharp fall in demand in the market of large
household appliances.
• On a yearly level, the market still recorded a slight growth, whereas in the last
two months of the year a decline was recorded in practically all markets (Russia:
-11.7%, Brazil: -14%, China: -18.5%, Europe: -8.5%). The only exception in Europe
was Poland with a growth of slightly over 10%.
Sales of
the Gorenje
Group and
Gorenje, d.d.
1200
900
600
300
2004 2005 2006 2007 2008
Gorenje d.d. (000 EUR) 603,488 639,960 731,761 831,273 764,106
Gorenje Group (000 EUR) 905,324 1,014,669 1,111,035 1,293,438 1,330,753
• In the given conditions, the products and services sold by the Gorenje Group
increased by EUR 37.3 million 2.9%)
• This growth also includes EUR 72.7 million generated through the acquisition of
Atag in July 2008.
A review of the net sales revenue in our divisions clearly points to the following:
• strengthening of the Ecology, Energy and Services Division (growth of volume
of operations and favourable prices of energy products),
• weakening of the Home Interior Division (business consolidation and loss of a
portion of revenue in the last two months of the year), and
• the successful replacement of revenue lost in the last two months of the year
(onset of financial crisis in Europe) with the half-year sales generated by the
acquired Atag company.
Sales revenue by division
In 000 EUR 2008 % 2007 % 08/07
Home Appliances Division 1,050,125 78.9 1,022,805 79.1 102.7
Home Appliances Division without Atag 977,416 / 1,022,805 79.1 95.6
Home Interior Division 59,133 4.4 65,206 5.0 90.7
Ecology, Energy and Services Division 221,495 16.7 205,427 15.9 107.8
= Consolidated sales revenue 1,330,753 100.0 1,293,438 100.0 102.9
= Consolidated sales revenue without Atag 1,258,044 / 1,293,438 100.0 97.3

41
3.2.1 HOME APPLIANCES DIVISION
3.2.1.1 SITUATION IN THE MARKET OF LARGE HOUSEHOLD APPLIANCES
EUROPEAN MARKET
• 1.9% decline in volume compared to 2007, primarily due to Western European
markets.
• 1.3% decrease in average prices and 3.2% decrease in sales value.
• The larger part of the decrease occurred in the last two months of the year,
when the sales volume decreased by 9.1% and sales value by 11.3% alongside a
2.5 decrease in prices.
WESTERN EUROPEAN MARKET
• 2.9% decline in sales volume.
• 1.5% decrease in average prices; 4.4% decrease in sales value.
• In the last two months of the year, declining sales intensified: sales volume by
7.1%, sales value by 9.3%. Prices dropped 2.3%.
• Highest decline in sales volume: Spain (-9.1%), United Kingdom (-7.4%) and
Italy (-4.4%). Despite the difficult situation, the sales volume increased in some
markets in 2008: Austria (+2.6%), Finland (+1.4%), the Netherlands (+0.8%) and
France (+0.6%).
• 2.9% decline in sales volume of all product groups, except washing machines.
• Highest decline in sales volume of dryers (-5%), cookers and ovens (-4.9%),
hoods (-4.8%) and cooking hobs (-4.4%).
EASTERN EUROPEAN MARKET
• 2.5% growth of sales volume on the yearly level.
• 1.9% positive growth of prices, 4.4% growth of sales value.
• In the last two months of 2008: 12.8% decline in volume, 15.8% decline in value,
3.5% decrease in prices.
• Highest decline in sales volume: Estonia (-14.9%), Croatia (-10.3%) and Hungary
(-9%); in the last two months of 2008 primarily the Ukraine (-36.3 %), Croatia
(-27.1%) and Russia (-6.2%). The markets of Poland and Slovakia grew both on
the yearly level and in the last two months of the year.
• Refrigerators were the only product group that recorded a decline in sales
(-3.8%). The highest growth was registered in the following product groups: dishwashers
(+19.9%), hoods (+12.9%), cooking hobs (+11.9%), and dryers (+11.2%).
Gorenje’s MARKET SHARE increased in the leading markets of Western Europe, i.e. Germany and
France, and was maintained in Scandinavia.
Gorenje increased its market share in Western Europe by 0.1% to 1.2%, and jointly with Atag to
1.8%.
In the last two months, Gorenje even increased its market shares in Germany and France in comparison
with competitors. In Eastern Europe, the Company lost 1.2% of its market share, attaining a
9.1% market share.

42
2008
3.2.1.2 SALES OF THE HOME APPLIANCES DIVISION
The companies of the division attained EUR 1,050.0 million in sales revenue and increased their
volume of operations by EUR 27.3 million in comparison with 2007. The acquisition of the Atag
company in July contributed EUR 72.7 million to the growth of sales.
Within the basic programme structure of own-brand products, the cooking appliances programme
once again took the leading position, followed by the refrigerator/freezer and the washer/dryer
programmes. The complementary programme saw a high increase in sales due to the acquisition
of the Atag company, while the supplementary programme retained its double-digit growth of volume
recorded in past years.
The heating-thermic appliances programme shared the same fate as other companies in this division,
recording a decreased sales volume in the last two months of the year, but nevertheless surssing
the planned values attained in 2007.
Geographic
structure of
sales
2007
SE Europe and
Slovenia
31.1%
Northern and
Central Europe
30.5%
Rest of the world
20.1%
Western Europe and
Mediterranean countries
18.3%
2008
SE Europe and
Slovenia
27.5%
Northern and
Central Europe
33.4%
Rest of the world
21.6%
Western Europe and
Mediterranean countries
17.5%
WESTERN EUROPEAN MARKET
• Business operation in conditions of declining demand for home appliances.
• All product groups, except dishwashers, recorded a decline in sales volume,
jointly -2.9%.
• Gorenje increased its market share by 8% in volume terms (altogether 13 Western
European markets).
GERMANY
• Sales did not achieve the target, but market shares increased by 3% in volume
and 5% in value terms, primarily in the segment of washers (by 12%); the launch
of a new generation of cooking appliances increased the market shares of this
segment.

43
AUSTRIA
SCANDINAVIA
• Rapid growth of sales and market shares in all distribution channels, surpassing
the targeted figures. Market share increased by 5%. Strengthening of the Gorenje
brand through intensive launches of new products.
• Despite the lower, below-target growth, the Company managed to retain its
joint market shares. Slightly lower results in Denmark, where the market share
decreased by 3%.
GREAT BRITAIN
• Due to the weakening of the pound against the euro, the sales targets, particularly
in terms of value, were not achieved. The relatively low market shares remained
on the same level.
FRANCE
• Sales targets were surpassed and market shares increased by 8%, mostly in
the segments of higher-priced washers, while sales of lower-priced washers
decreased.
SPAIN, PORTUGAL AND ITALY
• Sales targets were not achieved due to the extremely unfavourable market situation.
GREECE
TURKEY
• The new generation of cooking appliances was well accepted in the market, but
did not attain full sales potential. The targeted results were not achieved. 5%
increase of still relatively low market shares.
• Rapid growth of sales, entry into this market two years ago has created conditions
for accelerated growth of sales under the Gorenje brand name.
EASTERN EUROPEAN MARKET
• Sales increased slightly, by 4.3% in volume and 6.9% in value terms (8 countries
of Eastern Europe, excluding Russia, the Baltic’s and the Ukraine),
• Sales growth continued in some eastern markets; in South-eastern Europe,
declining sales were recorded primarily by the Croatian market.
• The sales targets of most countries were exceeded, except for Poland, whose
results were below the plan, but market shares were retained.
• Some principal markets saw a weakening of local currencies, which further
aggravated the position of exporters to these markets.
SLOVENIA
CROATIA
• The Company retained its position as market leader, as well as high market
shares in all product groups through intensified sales campaigns and launches
of new product models.
• Continuation of negative sales trend, reflected in a decrease of market share. High
market insolvency, fluctuating values of local currency, and lower sales results of
some business partners have aggravated Gorenje’s position in this market.
BOSNIA & HERZEGOVINA
• The sales targets were not achieved due to the insolvency of the market, rising
unemployment, distrust of consumers and resulting reductions of orders.

44
2008
SERBIA
• Sales results were above the target, market shares were retained or increased
in some product segments. Further expansion of own retail network – Gorenje
Studio. With its production facilities in Valjevo and Stara Pazova, Gorenje is recognized
as a domestic manufacturer.
MONTENEGRO, ALBANIA, KOSOVO AND MACEDONIA
• Increased sales and preservation of high market share in Montenegro.
• Intensified entry into the Albanian market with the launch of the Gorenje brand
name and development of a distribution network. Sales results in Kosovo slightly
below the target.
• In Macedonia, consumption is focused primarily on lower-priced products, buying
power of customers is low. Sales targets were exceeded, market shares retained.
RUSSIA AND THE UKRAINE
• The sales targets in Russia were exceeded by further strengthening of the
excellent position of the Gorenje brand name and launching of new designer
lines that are giving good results.
• Market shares increased in the Ukraine, but favourable sales results were limited
due to the very low volume of sales in this market.
SLOVAKIA AND CZECH REPUBLIC
• The Company saw a very rapid growth of sales, which exceeded the growth of
the Slovakian market as a whole, sales targets were strongly surpassed.
• Sales volume was preserved and market shares increased in the Czech market,
some groups of products are still maintaining a leading position – by supplementing
the Gorenje and Mora brand names.
ROMANIA
• Good sales results achieved and sales target exceeded in volume terms. Particularly
good results attained in the cooking appliances programme with a more
than 30-percent growth of sales.
• The sale of products from the supplementary programme exceeded the targeted sales by 5%.
• The sales programme was considerably expanded in all product groups (electronic and small
household appliances, vacuum cleaners, microwave ovens, …), and new product groups were rapidly
being added (induction hobs, juicers, cutters).
OVERSEAS MARKETS
• Impact of global crisis also felt in these markets, and consequently had a direct
impact on Gorenje’s sales.
• Products were generally not sold under our own brand names, which is why
the results depended on the sales achievements of business partners and were
below the plan.
• In the majority of markets, sales estimates were positive despite the unattained
targets, but market shares were maintained or even increased in most markets.
• Substantially lower sales in Australia, also smaller sales in the USA.
• Sales in Canada exceeded expectations, but almost completely halted at the
end of the year.
• Our sales targets were fully attained in the markets of the Near East and Iran.
Further investments are planned in the development of markets and the development
of the Gorenje brand name.
• Further strengthening of contacts with buyers and expansion of operations by
the acquisition of new buyers in Latin America.

45
BUSINESS OPERATION OF ATAG EUROPE BV
• By the acquisition of the Atag company, we have entered the Dutch market,
where all three Atag brands have more than a 30% market share. This acquisition
has also allowed us to increase our market share in Belgium by more than
10%.
• ATAG Europe BV managed to increase its sales volume by 1.7% to EUR 151.3
million. Despite the decline in sales, in some distribution channels even up to
15%, the company solidified its position in markets and consequently increased
its market share by an estimated 2%, in some distribution channels even by up
to 5%. The sales volume comprised 550,000 household appliances, of which
more than 90% were sold in the Dutch market, 7% in Belgium, and the remainder
in other export markets.
• The targeted sales volume was not fully achieved. In the second half of the year,
the company ended the year with 6.4% lower net sales revenue than initially
planned.
• The company managed to effectively control operating costs and ensure the
high profitability of sales and a cash flow within the plan. The synergies resulting
from cooperation between the two companies (joint purchasing, collaboration
in the development of new products, transfer of good practices, etc.) have also
contributed to the improved business operation of the Gorenje Group.
30
EBITDA 25
20
15
10
5
8%
7% EBITDA Margin
6%
5%
4%
3%
2%
1%
Positive
impact
of Atag
acquisition
on sales and
EBITDA of
the Gorenje
Group
Q3 2007 Q4 2007 Q3 2008 Q4 2008
Gorenje Group – including Atag
In mil EUR Q4 2007 Q4 2008 +/-
Sales 343 339 -1.2 %
EBITDA 29.1 22.8 -21.6 %
Margin 8.5 % 6.7 %
30
EBITDA 25
20
15
10
5
8%
7% EBITDA Margin
6%
5%
4%
3%
2%
1%
Q3 2007 Q4 2007 Q3 2008 Q4 2008
Gorenje Group – without Atag
In mil EUR Q4 2007 Q4 2008 +/-
Sales 343 300 -12.5%
EBITDA 29.1 17.5 -39.9%
Margin 8.5 % 5.8 %

46
2008
3.2.2 HOME INTERIOR DIVISION
The division attained EUR 59.1 million in sales revenue, which is EUR 6.1 million or 9.3% below the
targeted sales volume. Significant growth was recorded in the markets of South-eastern Europe,
a slight decline in the predominantly domestic market, and almost a 10% decrease in EU and other
markets.
• Kitchen furniture continues to be the most important of all programmes in this
division with a 45% share in sales. Faster growth was recorded in value than in
volume terms, primarily due to the sale of higher-priced products.
• A similar situation was noted in the bathroom furniture and sanitary equipment
programme, which attained 21% of the division’s total sales.
• Other furniture (bedrooms, living rooms, children’s room, vestibules) contributed
11% of the total sales revenue.
• Successful sales of the ceramics programme, which were smaller in volume, but
record in value. The programme exceeded the targets and attained a 9% growth
of sales, increasing its share in the total sales by 17%.
3.2.3 ECOLOGY, ENERGY AND SERVICES DIVISION
The division concluded the financial year with EUR 221.5 million in sales revenue, which is EUR 16.1
million (7.8%) above the previous year's figure.
Sales
structure of
the Ecology,
Energy and
Services
Division
2007
Other
13.7%
Energy management
50.9%
Ecology and hazardous
waste management 35.4%
2008
Other
12.9%
Energy management
43.9%
Ecology and hazardous
waste management 43.2%

47
ENERGY
• Sales revenue doubled in comparison with the plan, and together with the operations
of subsidiaries exceeded EUR 150 million.
• The sale of wood biomass in Slovenia was stimulated by subsidies aimed at
enhancing the consumption of this energy product.
• Higher revenue and profits in the marketing and sale of electric power were
achieved primarily through the marketing of electric power in new markets in
Serbia, Hungary, Greece and Albania.
• New buyers of coal were acquired in Italy and Hungary, and the majority of coal
from the contractual year 2008/2009 was already sold in 2008.
• A large portion of electric power sold in Slovenia was obtained from domestic
sources. Part of the wood biomass was supplied by the Company’s own production
facilities in Bosnia, and more than half of the biomass was purchased
from Slovenian manufacturers. The source of eco coal was limited to Indonesian
sources. Due to higher demand, a portion of the coal was also purchased
through two other suppliers.
ECOLOGY
• Sales were recorded in the amount of EUR 97.9 million and exceeded the targets
by more than 20%. The key contributors to this result were Surovina (78%),
followed by the area of hazardous waste processing led by Kemis (13.4%), while
EUR 8.3 million or 8.4% was contributed by the companies Erico, Econo and
Publicus. The companies based in Slovenia and Croatia surpassed the planned
sales, while a slight decline was recorded in B&H and Serbia.
• Business operation was primarily the result of organic growth, with less new
capital links than in previous years.
• Having rounded off its offer of services, this area is becoming an increasingly
more important player in the market of integral management of industrial and
hazardous wastes. This sound basis has improved conditions for the expansion
of the service pallet and expansion to the markets of neighbouring countries.
• The consequences of the crisis were strongly felt in the last quarter of 2008, primarily
in secondary raw materials. The negative trend is expected to continue
into 2009 and directly or indirectly affect other companies as well.
SERVICES
• In the area of services, Gorenje GTI, d.o.o. and Gostinstvo, d.o.o. retained an
important share in the total sales revenue.

48
2008
3.3 MARKETING
The year was marked by the intensive communication of environmental topics, the launching of new
generations of cooking appliances that will significantly contribute to sales volume and growth, and
the development of new, innovative and superiorly designed products: the Gorenje Ora-Ïto White
collection and the innovatively designed Gorenje »Made for iPod« refrigerator-freezer.
In September 2008, the European Brand Institute, a distinguished private institute based in
Austria, presented the results of a study of brand names on the European level, which included
300 companies from 24 countries. In the eastern part of Europe, the study presented Gorenje as
a positive example of a leading brand name whose value is estimated at EUR 445 million, which
is EUR 63 million higher than in 2007. The sales of own-brand products contributes the most to a
higher reputation and recognisability, which in Gorenje exceeds 80% of the total sales of household
appliances and is three percent higher than in the previous year.
Successful presentation at the international IFA fair in Berlin, reputed as one of the largest consumer
electronics and household appliance fairs in the world, which on this occasion also featured a HOME
APPLIANCES@IFA exhibition. At the main pan-European presentation of Gorenje, we presented
a selection of novelties, including the premiere presentation of an eagerly awaited, innovatively
designed, technologically advanced, new generation of household appliances, for which a
comprehensive set of communication support was also prepared. Also primarily presented was the
white version of the sales and promotional hit – the Gorenje Ora-Ïto White collection. Gorenje signed
a licence contract with the Apple company for the use of its technology in Gorenje refrigerators.
The Gorenje »Made for iPod« refrigerator, a unique combination of consumer electronics – the cult
iPod Touch – and a modern Gorenje fridge freezer appliance, was primarily presented at the fair and
enthusiastically received by visitors.
The success story of our cooperation with the French designer, Ora-Ïto, which began two year ago,
continued with resounding presentations in various European markets, among others at the 20th
Moscow Fashion Week in Russia.
The first Gorenje Ora-Ïto Black collection continues to generate enthusiasm among buyers and
professionals, and has been included among nominees in the category of best household appliances
selected by the Wallpaper magazine, a cult magazine for design, interior decoration, fashion,
art and lifestyle.
In cooperation with Pininfarina, our Italian partner, the Gorenje Pininfarina Black collection was presented
at a special event for the international media in Turin. The innovative Smartable by Gorenje
fascinated visitors at the international »Observeur 08« exhibition in Paris, our conceptual project of
freestanding Qube appliances was presented at the 21st biennial of industrial design – BIO 21, and a
successful presentation of Gorenje took place at the Futura 2008 fair in Austria.
At the end of the year, we presented our own-brand products at the specialized international
Interior Lifestyle China Fair held in Shanghai, China.
The new Gorenje Lifestyle Magazine was launched in 2008. The magazine will be issued twice
yearly in the Slovenian and English languages, and is intended for business partners, the media,
and final buyers.

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3.4 PURCHASING
Raw material markets underwent enormous changes, marked by two price trends occurring in different
periods of the year. In the first part of the year, the prices of raw materials continued to rise
steeply, attaining historic levels in July: oil, copper, aluminium, steel sheet, iron ore, etc.. In the second
half of the year, record oil prices and the financial crisis led to a slowdown of global economic
growth, recession in developed economies, a decline in demand, and highly increased stocks.
The prices of raw materials plunged by the end of the year (oil 70%, non-ferrous metals 60%, plastics
35%, steel sheet 40%, etc.) and in December reached their lowest level since 2003. The drop in
prices was also enhanced by the strengthening of the dollar and the withdrawal of investors from
commodity exchanges.
On a yearly level, all major international comparative indexes of raw materials monitoring price fluctuations
in commodity markets fell drastically. In spite of this, the prices of raw materials were still
higher than those before the beginning of their six-year period of prosperity, and even above average
historical levels.
The unpredictability of raw material markets increased substantially, along with daily fluctuations in
raw material prices on stock exchanges and exchange rates.
• In the area of purchasing, we weathered the situation by carefully monitoring
and promptly detecting market influences, and by hedging against risks.
• In the first half of the year, we managed to avoid the steep rise in prices by forward
buying of listed raw materials through our suppliers, and in the second half
of the year by selectively responding to the trend of falling raw material prices.
• The aggressive demands of the steel industry for reviewing concluded annual
agreements with the intention of laying the burden of more expensive metallurgical
raw materials on buyers were not accepted. The subsequent decrease in
steel sheet prices in spot markets that followed the erosion of demand for steel
proved that this decision had been well chosen.
• The delays in reaching agreements on the purchase of plastic masses proved to
be even more effective, as the prices of all plastic materials gradually began to
decline in response to the sharp fall in the prices of crude oil and petrochemical
base materials.
• In line with the set goals, the development and increase in the volume of supply
sources were continued in Asia, other dollar areas, and in the countries of
South-western Europe.
• Considerable attention was and is being given to strengthening relations with
our strategic partners and achieving our joint goal of overall cost savings (innovations,
optimization of components and processes).

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2008
3.5 INVESTMENTS
The investments of the Gorenje Group amounted to a total of EUR 76,807 thousand, of which EUR
71,290 thousand accounted for property, plant and equipment, and EUR 5,518 thousand for intangible
assets.
Investments
in the 2004-
2008 period
totalled EUR
347.3 million.
80
Investments (in mil EUR) 60
40
20
12%
10% Share of investments
in revenue
8%
6%
4%
2%
2004 2005 2006 2007 2008
Investments in property, plant and equipment, and intangible assets of the Gorenje Group by
division:
In 000 EUR 2008 2007
Home Appliances Division 58,550 57,013
Home Interior Division 1,524 6,946
Ecology, Energy and Services Division 16,733 10,147
Total 76,807 74,106
3.5.1 HOME APPLIANCES DIVISION
(total investments EUR 58,550 thousand)
Investments totalled EUR 58,550 thousand, of which the majority were within the parent company
(EUR 36,480 thousand) and in the companies Gorenje Invest, d.o.o. (EUR 5,918 thousand), Gorenje
Tiki, d.o.o., Ljubljana and Stara Pazova (EUR 2,503 thousand), and Gorenje Polska Sp.z o.o. (EUR
3,237).
• conclusion of a project involving a new generation of refrigerator-freezers of
the 540 mm range
• purchase of technological equipment and tools for the project involving 600
freestanding cookers, in-built cookers and new cooking hobs
• purchase of technological equipment and computer software
• replacement of obsolete logistic equipment
• completion of a business, warehouse and exhibition centre in the company
Gorenje Polska Sp. z o.o.;
• construction of business-commercial centre in Belgrade.
3.5.2 HOME INTERIOR DIVISION
(total investments EUR 1,524 thousand)
The majority of investments within this division were made by the company Gorenje Notranja
oprema, d.o.o. from Velenje in the amount of EUR 1,139 thousand. Other major investments

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included a connection to the natural gas network (Keramika programme), setup of a new warehouse
tent in Nazarje, and the renovation of a production hall in Maribor. The reconstruction of a kitchen
production plant at Gorenje Kuchyne spol. S.r.o. in the Czech Republic, which had suffered extensive
damage from a fire, was completed.
3.5.3 ECOLOGY, ENERGY AND SERVICES DIVISION
(total investments EUR 16,733 thousand)
Investments in environmental management totalled EUR 12,982 thousand, the majority of which
were made by the company Surovina, d.d., Maribor for the acquisition of land and equipment for
new business units in Kranj, Nova Gorica and Ptuj (EUR 6,408 thousand), and by the company
Kemis, d.o.o., Radomlje for the construction of a recycling centre in Vrhnika (EUR 4,501 thousand).
Investments in other companies within this division totalled EUR 3,751 thousand and primarily
involved the restoration of existing equipment.

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2008
3.6 DEVELOPMENT
In the field of development and research the majority of activities were focused on the projects for
the provision of competition.
Key development fields:
• energy – research in the field of energy consumption;
• materials – search for new materials that enable new and improved functionality
of products, their ecological suitability and search for alternative materials in
order to reduce production costs;
• management and integration of household appliances – new technologies of
management and integration and services that can be developed.
It is our strategic orientation that external expert partners are included in the research-development
projects, such as co-operation with the world known experts in the scope of the MSESI project
(Gorenje Management Strategy for Excellence in Sustained Innovation), with the Jožef Stefan Institute
Ljubljana, Faculty of Mechanical Engineering Ljubljana and Faculty of Electrical Engineering,
Computer Science and Informatics Maribor.
The work on three projects has been successfully completed within the 6th framework EU
programme: the ESTIA project (Enhanced Networked Architecture for Personalized Provision of
AV Content within the Home Environment), COMANCHE (Software Configuration Management
Framework for Networked Services Environments and Architectures incorporating Ambient
intelligence Features) and INHOME (An Intelligent Interactive Services Environment for Assisted
Living at Home).
3.6.1 HOME APPLIANCES DIVISION
NEW GENERATION OF COOKERS
The year 2008 was marked by the largest development project of the last two years, the complete
new generation of cookers based on innovative technologies, excellent ergonomics, care for the
environment and friendly management.
The inclination of the top oven surface has been among the most high-profile achievements and
patents. The patented original solution of the top heater placed in two height levels following the
inclination is related to this exceptional characteristic of the oven.
The following patent has been connected to the temperature influences of the oven operation on
the environment – patented cooling system of the oven enables that the cold air moves between
the furniture and the oven instead of the hot air.
THE GORENJE ORA-ÏTO WHITE COLLECTION
The development of the new minimalist collection of the trendy designed Gorenje Ora-Ïto appliances
in white which continues the successful story with the French designer will repeat or even exceed
the success of the white hit collection.

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The appliances have been classified into the highest A energy classes and provide all modern user
functions.
They are known for their harmonised design of the front decorative panels that are completely covered
with white glass and handles made of honey-combed aluminium in stainless steel.
THE INNOVATIVE REFRIGERATOR »Gorenje made for iPod«
In the year 2008 a licence agreement with the company Apple was signed for the use of their technology
in the Gorenje refrigerators. An innovative product has been developed providing a combination
of the iPod device and a Gorenje refrigeration and freezing appliance. A premiere presentation
of the product prototype was at the largest world fair of entertainment electronics IFA
2008 in Berlin.
OTHER APPLIANCES
A new generation of built-in and free-standing refrigerating and freezing appliances in a width of
540 mm; free-standing appliances of 600 mm with the new external appearance and modernised
interior and modernisation of free-standing appliances in a width of 540 mm.
A new generation of condenser dryers of the B energy class. The transition to a higher energy class
has been enabled by the innovative technology optimising of air flows and recycling of the hot air
developed during drying.
A washing machine of an input segment with the new appearance and electronic operation and a
niche appliance, innovative washing machines – a slim model with tank.
Electric kettles have been upgraded by new electronics that reduces electricity consumption and
enables simple operation.
After the take-over of the company Atag the work on numerous development projects has started
in co-operation with the Dutch colleagues; the results will be visible in the years to come.
3.6.2 HOME INTERIOR DIVISION
The development of the programmes of the Gorenje kitchens and the Marles kitchens was marked
by the introduction of the variants parts list system, which is a novelty in the production and the ordering
system. The new system has enables extension of programmes and offers more possibilities
to customers when planning kitchens than in the past. The results are evident in the significantly
up-to-date kitchen and bathroom catalogue 2008/09.
Other sales programmes have been also modernised: furnishings for living rooms, nurseries, bedrooms,
apartments and hotel rooms as well as the sales range of ceramics of own production.
The development was focused on testing of new, ecologically sound materials. New tools with the
new closing system were introduced to the bathroom programme and besides that solvents were
replaced by cleaning agents which brought positive ecological and financial effects.

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2008
3.6.3 ENERGY, ECOLOGY AND SERVICE DIVISION
Technological processes were optimised in the field of wood pulp production and purchasing and
sales activities were centralised. Resale of coal is based on long-term contracts, but they have become
less stable due to the existing conditions.
The development of the complete services of industrial waste management continued. A pilot
project of residual waste processing to high-calorie alternative fuel was successfully completed
in the company Surovina. This fuel may be used as energy in thermal-plant facilities in form of
co-incineration or in independent energy facilities intended exclusively for the thermal energy
generation from alternative fuel. The company Kemis has built its own waste management centre
in Slovenia in order to gain a competitive advantage and enable further expansion of the activity.

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3.7 PRODUCTION
The majority of production activities of the household appliances division were carried out in scope
of the parent company. In Velenje 77 % of all appliances were produced and the rest in the cooking
appliance factory in Mora in the Czech Republic and in the factory refrigeration and freezing appliances
in Valjevo, Serbia.
The production was focused on constant quality improvement of products and cost optimisation.
The key challenges in the last months of the year 2008 included maximal adjustment of the scope
of production to the orders. In spite of the exceptional fluctuations in orders and difficult planning
the efficient organisation of production followed the demand in the market.
Pieces 2008 2007 2006 2005 2004
Slovenia 2,699,647 3,016,916 3,167,252 2,998,196 3,007,484
Czech Rep. 419,894 413,875 434,766 388,090 /
Serbia 385,499 445,626 52,972 / /
TOTAL 3,505,040 3,876,417 3,654,990 3,386,286 3,007,484
Average annual growth 2004-2008 Slovenia: - 2.5 % annually
Average annual growth 2004-2008 - total: + 4.3 % annually
NEW TECHNOLOGIES
• The majority of novelties in production technology were introduced in the cooking
appliance factory in Velenje.
• The modernisation included 70 % of the production programme of cooking
appliances that completely modernised the factory in terms of technology.
• The productivity and flexibility of production increased significantly, the work
method has been improved and is now friendlier to the employees and thus
the possibilities of failures substantially decreased and the workmanship quality
increased.
• The technology park of the cooking appliance plant was up-graded by the best
equipment available.
• It is important that the costs of the cooking appliances production were maintained
at the same level as in the previous generation.
INCREASE IN PRODUCTIVITY AND COST OPTIMISATION
• The cost control was directed to the introduction of components from China
and Turkey and in the programme of refrigeration and freezing appliances.
• The activities of productivity improvement continued as well as the optimisation
of overheads.
• Rejects were reduced in the factory of mechanical components and progress
was made in material consumption and machine utilisation.
• In Gorenje, I.P.C., the information support increased level of traceability of
installation of individual components. Jobs were adjusted to the disability levels
of disabled persons employed, which resulted in an increase in work productivity,
quality of products and services.
• The company Tiki, d.o.o. continued to increase the scope of production and to
restructure the production programme, mainly by improvements and organisational
measures.

56
2008
3.8 QUALITY MANAGEMENT
Product quality ensuring maintenance of the existing and acquisition of new customers is one of
the basic requirements for business growth of the company. Total quality management has been
a harmonised method of process management and represents constant progress in the quality of
work and management. The achievement of the quality products and services in Gorenje is traditional
and a result of fundamental principles when accomplishing the mission of the Group.
3.8.1 HOME APPLIANCES DIVISION
• A total quality management system has been established: international standards
of quality management system (SIST EN ISO 9001, SIST EN ISO 17025).
• Examination of the system by internal audits, supplier audits and external audits
of business partners.
• A renewal audit was conducted by external auditors from the TUV certification
company assessing that the company has a well-operating and efficient quality
management system and it meets all the requirements of the established systems
for the acquisition and maintenance of confidence and satisfaction of customers.
• The co-operation with suppliers intensified during the Six Sigma principles
training. The effects have been directly visible in the reduction of costs of quality
deviations caused by them.
• Introduction of the new, analytical tools (SAS SWA) for monitoring and analysis
of events in the guarantee period of products. The tools enable control of
data from the markets and provide solutions for quick reduction in guarantee
costs. Due to the nature of guarantee costs the effects will be evident in the following
years.
3.8.2 HOME INTERIOR DIVISION
• The division has a total quality management system in accordance with the
requirements of standard ISO 9001:2000. Over 100 management staff has been
actively and directly included in the field of quality, but indirectly this field concerns
all the employees.
• The efficiency of the system was examined by three audits of the quality
management system, two internal ones (one regular and one extraordinary), one
external, a renewal one were conducted by the Slovenian Institute for Quality
and Metrology (SIQ). All thee audits recognised the conformity of the quality
management system.

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3.9 FINANCIAL MANAGEMENT
The uniform financial policy of controlling operating liabilities and receivables when financing and
investing, in finance risk management and in co-operation with banks and insurance companies.
The performance of the financial policy in relation to banks and other financial institutions, control
of management processes with financial risks and optimisation of cash management are in the
competence of the parent company. The starting conditions of the financial operation are valid for
all companies of the Group under consideration of the characteristics and particularities of individual
national environments where they operate.
Short-term solvency of the Group assured by the efficient cash management and appropriate
height of lines or short-term cash flow management for short-term cash flow regulation. Special attention
was paid to the systematic planning of the anticipated cash flows at the Group level.
• Long-term investment ratio of long-term assets by long-term sources amounted
to 113.8 %.
• Free liquidity resources were available to Group companies in the amount of EUR
76.6 million in form of cash and cash equivalents (EUR 24.1 million) and unused,
granted revolving loans (EUR 52.5 million).
• The parent company strengthened the role in the financing of the Group by the provision
of required financial resources below the market favourable conditions to all
companies. In Slovenia it actively participated in short-term financing of the companies.
• Financial liabilities increased by EUR 175.3 million or 56.1 %. The growth in liabilities
is partly a consequence of the purchase of the company Atag that was financed
by taking a long-term loan and by disposal of own shares and partly it is a consequence
of investments higher than amortisation / depreciation expense and the
growth in working capital.
• Financial liabilities amounted to EUR 487.8 million, of which the amount of loans
received to EUR 468.2 million.
• Maturity of loans received: 46.2 % of long-term loans and 53. 8% of short-term
loans.
• Decline in liquidity in the inter-bank market in the last quarter of the year dramatically
reduced the availability of long-term financial resources. Taking of mostly shortterm
financial resources and thus the change in the structure of loan maturity.
• Currency classification of the loans received: EUR (94.5 %), CZK (3.7 %) and other
currencies (1.8 %).
• Structure of financial liabilities with respect to the type of interest: share of fixed
interest rates 37.6 %, as a consequence of maturity of part of transactions for the
security against interest risk and higher borrowing levels. Other interest rates are
changeable, mostly linked to EURIBOR.
• Increase in long-term and short-term investments due to the increase in short-term
loans granted to business partners.
• Increase in value of investment property and other investments.
• Impairment of the value of market securities in the total amount of EUR 4.8 million
due to the general reduction in the value of market securities with the influence on
the income statement.
An international insurance programme (insurance of property and responsibility) has been concluded
in the field of insurance since 2006. It includes the majority of Group companies and it is
based on contractual relations with the insurance company Generali, d.d., and its contractual partners.
The insurance conditions in the field of transport and car insurance of the Triglav insurance
company were harmonised for all the companies in Slovenia. The programmes concluded have
been annually up-graded and adjusted to the needs of operation and risks.

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2008
3.10 RISK MANAGEMENT
The risk management council carried out activities for detection and re-definition of individual
types of risks that the Gorenje Group is exposed to.
Three committees operate with the risk management council: business risk committee, financial
risk committee and operation risk committee.
Risk detection has been evaluated by the size of influence on the result and assessment of probability
for the occurrence of influence and exposure to individual risks by additional criteria which has
enabled the preparation of proposals and taking of measures for risk management.
Individual risks were joined in groups and classified into a strategic risk map. The risk management
council directed and co-ordinated the hedging activities and risk reduction to a business reasonable
and acceptable level.
Strategic risk map
Size of Damage
Probability
TYPE OF RISK small moderate high very high high medium low very low
1. Business risks
1.1 External risks
1.2 Sales risks
1.3 Purchase risks
1.4 Product risks
1.5 Development risks
1.6 Human resources risks
1.7 Property loss risks
2. Financial risks
2.1 Credit risks
2.2 Currency risks
2.3 Interest rate risks
2.4 Liquidity risks
3. Operating risks
3.1 Production risks
3.2 Information system risks
3.3 Fire risks
3.4 Tax risks
3.10.1 BUSINESS RISK MANAGEMENT
Business risks are classified as risks associated with the ability of provision of short-term and longterm
generation of operating revenue, control of business processes and maintenance of asset
value.
BUSINESS RISKS: external risks; sales risks; purchase risks; product risks; development risks;
human resources risks; property loss risks
External risks are mainly associated with the changes in macroeconomic conditions of operation
in individual key markets. The exposure has been greatly increased due to the beginning of the
global financial crisis, versatility and complexity of business activities. The management board of
the Gorenje Group has assessed that the exposure to such risks is extremely high in individual
markets.

59
Sales risks are associated with the competition in the sale of products and services in individual
markets and include risks of appropriate marketing strategy (brand name, price and functional
competition of products, design etc.), risk of increasing negotiating power of major industrial customers
and trade chains and risk of quality of after-sales services. The management board of the
Gorenje Group has assessed that the exposure to such risks is moderate and will be very high in
the following year.
The financial crisis and recession have increased unpredictability in raw-material markets, and daily
fluctuations on stock exchanges have reached a two-digit percentage. The measures for the decrease
in exposure to purchase risks have been adjusted accordingly. Forward purchases of metals
have changed from long-term ones into short-term ones and instead of hedging against the increase
purchasing is carried out currently. Long-term partnerships have remained the strategic advantage
of purchasing, but exclusively on competitive bases. Hedging measures against purchase
risks are also derived financial instruments for raw materials. The development of supply sources in
the LCC markets has continued and these are mostly US $ areas by which natural hedging of sales
in $ has been provided. In spite of the concluded hedging and the anticipated slow-down of the global
economy, and reduction in prices of raw materials in world stock exchanges, the management
board of the Gorenje Group has assessed that the exposure to purchase risks is moderate.
Product risks have been focused on the control of risks that may lead to incorrect operation of
appliances in the market and finally to a mass failure or product responsibility of the producer.
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. 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. The
management board of the Gorenje Group has assessed that the exposure to product risks is
moderate with respect to the measures mentioned.
Risks 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 are of key importance among investment and development risks. Thereby appropriate
planning and control of investment effects is relevant. Risks related to the introduction
of new generations and new technologies have been reduced in the preparation project phases by
exact preparation of business plans, in the implementation phases by systematic, active project approach
where achievement of the objectives set has been regularly monitored as well as the definition
of the corrective activities in case of deviations. In spite of all activities reducing the exposure to
the risk the management board of the Gorenje Group has assessed that the exposure to investment
and development risks is high due to unforeseeable changes in the business environment
influencing the reliability of planning.
The reduced scope of orders and thus the reduced scope of production dictates a decrease in the
number of employees and reduction in labour costs tightening the conditions for a social dialogue
and increases human resources risks. Great attention has been now paid to adequate and timely
informing, answers to questions and unclear issues that the employees discuss in relation to the
reduction of employees, healthy working environment relating to the problems of leaving of quality
employees and experts. The management board of the Gorenje Group has assessed that the
exposure to human resources risks is moderate due to the activities mentioned.
Property loss risks are related to the control of property and transport risks where the Group
companies systematically transfer key property risks to insurance companies or business partners
and thus reduce the exposure to such risks. The management board of the Gorenje Group has
assessed that the exposure to such property loss risks is small.

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2008
3.10.2 FINANCIAL RISK MANAGEMENT
Financial risk control has pursued the internal financial policies including the starting points for
efficient and systematic management of financial risks.
The exposure and measures for hedging against them have been taken; it has been judged on the
basis of effects on cash flows. Suitable hedging activities have been carried out in scope of ordinary
activities in the operating, investing and financial areas.
FINANCIAL RISKS: credit risks; currency risks; interest rate risks; liquidity risks.
Due to the increasingly difficult macro-economic situation the attention paid to credit risks has
been concentrated and includes all risks reducing the economic benefits of the company due to
unsettlement of contractual obligations of business partners (customers). The control of exposure
by the sets of measures:
• security of the major part of operating receivables against credit risks with the
Slovene Export Company (Slovenska izvozna družba – Prva kreditna zavarovalnica,
d.d., and other insurance companies.
• Additional security of more risky receivables due from customers by mortgages,
bank guarantees, and other security instruments.
• Regular control of operation and financial position of all new and existing business
partners and limiting of exposure to individual business partners.
• Joint and chain offset with customers.
• Systematic and active control processes of credit overdrafts and collection of
receivables.
The management board of the Gorenje Group has assessed that the exposure to credit risks is
moderate due to the measures mentioned.
The Group is greatly exposed to currency risks due to the geographic diversification of operation,
where the economic benefits of the company may decrease due to changes in the exchange rate
of an individual currency. The exposure of cash flows and balance sheet has been considered in the
valuation of risks. These risks are high in the markets of Serbia, Great Britain, Czech Republic, Slovakia,
Poland, Hungary, Croatia and in all US $ markets. Regardless of the measures taken the management
board of the Gorenje Group has assessed that the exposure to currency risks is high
due to relevant macro-economic changes and fluctuations of mostly East- European currencies.
Great attention has been devoted to interest rate risks reducing the economic benefits of the company
due to a change in total interest rates in the market. The hedging scope has reduced and the
share of fixed interest rates and derived financial instruments accounts for 37.6 % of credit portfolio
of the Group at the end of the financial year 2008. The management board of the Gorenje Group
has assessed that the exposure to interest rate risk is high.
Liquidity risk includes risks associated with the lack of financial resources available and consequently
the inability of the company to settle its liabilities in the term-limits agreed. The financial liabilities of
the Gorenje Group amounting to EUR 278 million mature in the year 2009 and therefore discussions
with banks relating to the re-financing of the existing financial liabilities started in the last quarter of
the year 2008. Thus the refinancing risks reduced. A liquidity reserve amounting to EUR 76.6 million
including unused revolving lines and cash of the Group in banks provides short-term regulation of
cash flows and reduces short-term liquidity risks. The risk of short-term liquidity of the Group has
been assessed as increased due to efficient cash management, appropriate credit lines available
for short-term cash flow regulation, high financial flexibility and good access to financial markets
and resources. The reason for the increased risk is the reduction in financial resources available
from business partners (customers and suppliers). A long-term liquidity risk as a consequence of
successful operation, efficient asset management, sustained ability of generating cash flows from
operating activities and suitable equity structure has been assessed as moderate. The management
board of the Gorenje Group has assessed that the exposure to the liquidity risk is moderate.

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3.10.3 OPERATING RISK MANAGEMENT
Operating risks include a reduction in economic benefits of the Group arising from the ability of
unsuitable planning, performance and control of business processes and activities.
OPERATING RISKS: production risks; information system risks; fire risks; tax risks.
Control of production risks:
• operation of key equipment: key machines, tools, production lines and units for
material processing,
• operation of infrastructure including smooth supply with energy sources, provisions
of infrastructural suitability of environmental management with hazardous
substances, operation of the central waste water treatment plant,
• availability of production capacities and
• inadequate direct management of hazardous substances.
The management board of the Gorenje Group has assesses that the exposure to product risks is moderate.
Risks related to the assurance of availability and response of the information system services
depending on hardware and software are relevant among the information system risks.
The control of risk exposure includes:
• gradual introduction of SAP - uniform information system to all companies in
the household appliances division,
• measures for individual kinds of failures in the operation of the local computer
network, supporting servers, global communications and network connections
in the system prepared in advance,
• operation of the Disaster Recovery Centre – DRC,
• changes in the architecture of server systems (server virtualisation),
• planning of actions at the time of information support failure,
• regular maintenance of software and hardware, communications and network
connections,
• control of changes in the development of information systems,
• appropriate training of employees and other measures.
The management board of the Gorenje Group has assessed that the exposure to information
system risks is moderate.
Fire risks have been limited by regular assessment of fire danger on the basis of which all facilities
have been equipped by active fire protection systems, the supervision over the performance of fire
protection measures has been intensified, and the employees have been additionally trained in the
area of fire protection. The management board of the Gorenje Group has assessed that the exposure
to fire risks is moderate.

62
2008
Tax risks are associated with potential changes in tax legislation, its implementation in daily business
processes and provision of administrative conditions. The basic control measure is consistent
following of regulations of tax legislation, monitoring of tax and legal practice, establishment of
internal control mechanisms and intensive co-operation among the departments in the Group
companies (tax field, accounting, trade, informatics, logistics, etc.) With respect to the operation
with the subsidiaries having their registered offices aboard the risks are controlled by managing of
a co-ordinated transfer price policy. Uniform documentation for their evidence shall be prepared.
The management board of the Gorenje Group has assessed that the exposure to tax risks – due
to the complexity of operation, large scope of international transactions and potential changes
in the tax legislation – is large, but the probability of occurrence of risky events is low.

63
3.11 CREATING VALUE FOR
SHAREHOLDERS
A day devoted to quality communications with shareholders and other public interested is of essential
importance. Extensive interim reports and other information on operation of the parent company
/ the Gorenje Group have been published regularly.
The strategy and objectives of communications include professional and independent valuation of
shares, improvement of corporate disclosures, acquisition of wide coverage of analysts, increase
in recognition of operation of the management board, development of an appropriate ownership
structure, increase in the coverage of financial media and care for correct presentation of data
about the company / Group in expert data bases.
As of 31 December 2008 the number of recorded shareholders amounted to 21,359 which is an increase
of 8 % when compared to 31 December 2007 (19,779).
Changes in the ownership structure 31 Dec. 2008 31 Dec. 2007 Increase in share of financial
Kapitalska družba incl. funds 26.04% 26.09%
Financial investors 48.16% 40.31%
Individuals 24.94% 25.16%
Own shares 0.86% 8.44%
Total 100% 100%
investors from 40.3 % to 48.2 %.
Reduction in share of individuals
from 25.2 % to 24.9 %.
Increase in share of foreign
owners from 9.98 % to 17.59 %.
Ten major shareholders 31 Dec. 2008 % Increase in the
KAPITALSKA DRUŽBA, D.D. 3,534,615 25.1933%
HOME PRODUCTS EUROPE B.V. 1,070,000 7.6265%
INGOR, d.o.o., & co. k.d. 782,056 5.5742%
KD GALILEO, VZAJEMNI SKLAD 564,984 4.0270%
RAIFFEISEN ZENTRALBANK OESTERREICH AG 523,199 3.7291%
PROBANKA d.d. 412,276 2.9385%
EECF AG 406,727 2.8990%
KD ID, delniška ID, d.d. 333,957 2.3803%
DELNIŠKI VZAJEMNI SKLAD TRIGLAV STEBER 316,613 2.2567%
KD RASTKO, DELNIŠKI VZAJEMNI SKLAD 232,593 1.6578%
TOTAL TEN MAJOR SHAREHOLDERS: 8,177,020 58.2824%
OTHER SHAREHOLDERS: 5,852,980 41.7176%
Total 14,030,000 100%
number of shares
of ten major
shareholders in one
year by 2 %.
As of 31 Dec.
2008 the number
of shares of ten
major shareholders
increased from
8,008,356 to
8,177,020 or by
168,664 shares.
As of 31 December 2008 the company had 121,311 own shares, which accounts for 0.8647 % in share
capital. As of 1 January 2008 the company had 1,183,342 own shares, of which 1,070,000 were disposed
on 26 June 2008 at a price of EUR 36.83 per share (a 6-month average of the uniform price
of shares of Gorenje, d.d., on the Ljubljana Stock Exchange), or a total of EUR 39,408,100 in favour
of the company Home Products Europe B.V. from the Netherlands or they were used for the payment
of a portion of purchase money of the Dutch company ATAG Europe B.V.
In 2008 the company acquired 3,169 shares in the organised capital market on the basis of authorisation
of the shareholders’ meeting of 20 November 2008 and in the period from 21 November
2008 to 27 November 2008 it acquired another 4,800 own shares.
A sharp decrease in uniform prices in the year 2008. A uniform price of a GRVG share amounted
to EUR 10.51 on 31 December 2008 and was lower by 75 % when compared to the last trading day
in the year 2007 (EUR 42.42).

64
2008
Movement of
the uniform
price of the
GRVG share
and daily
turnover in
the period
2007 – 2008
GRVG
50.00 2,500
turnover in 000 EUR
40.00 2,000
30.00 1,500
20.00 1,000
10.00 500
Trading with the GRVG share and ratios 2008 2007
ANNUAL TURNOVER in million EUR 46.0 123.3
AVERAGE MARKET CAPITALISATION in million EUR 412.1 473.3
VALUE TURNOVER
(turnover/average market capitalisation)
0.11 0.26
BOOK VALUE PER SHARE in EUR
equity / (no. of shares – own shares)
22.47 21.39
MARKET / BOOK VALUE 0.47 1.72
DIVIDEND YIELD
(uniform price at the end of the year considered)
4.3% 1.0%
EPS in EUR
(net profit of Gorenje, d.d./ no. of shares – own shares)
0.89 1.18
P/E (uniform price at the end of the year / profit per share) 11.8 41.2
Gorenje pursues the policy of stable dividends. It has been defined in the strategic plan that a third
of the annual net profit of the Group shall be allocated to dividends and thereby investment and
development plans and the financial position of the Group shall be considered. Dividends shall be
paid from the accumulated profit of the company and a resolution on its use shall be adopted by
the shareholders’ meeting. In 2008 a gross dividend amounting to EUR 0.45 per share was paid for
the year 2007.
No. of shares owned by the members of the supervisory and the management boards:
31.12.2008 31.12.2008
Supervisory board 14,146 0.1009% Management board 13,230 0.0943%
Mr. Ivan Atelšek 9,497 0.0677% Mr. Franc Bobinac 2,096 0.0149%
Mr. Peter Kobal 1,355 0.0097% Mr. Drago Bahun 9,032 0.0644%
Mr. Drago Krenker 920 0.0066% Mr. Franc Košec 1,380 0.0098%
Mr. Krešimir Martinjak 115 0.0008% Mrs. Mirjana Dimc Perko 96 0.0007%
Mr. Jurij Slemenik 1,738 0.0124% Mr. Branko Apat 626 0.0045%
Mr. Jože Zagožen 466 0.0033%
Mr. Gregor Sluga 55 0.0004%
The planned supervised and price-sensitive information have been published on the website of
the Ljubljana Stock Exchange through the SEOnet system (www.ljse.si) and on the website www.
gorenje.com. An appropriate message on possible changes in the planned dates of publications will
be given timely on websites of www.gorenje.com.

65
3.12 BUSINESS PLAN AND
ANTICIPATED OPERATING
CONDITIONS IN THE YEAR 2009
THE ASSUMPTIONS CONSIDERED IN THE BUSINESS PLAN PREPARATION
Different scenarios of the business plan 2009 have been prepared due to the changed conditions
of operation that were strongly evident in the last weeks of the year 2008 and partly already in
the orders known for the first three months of the year 2009.
Various activities and measures for the adjustment of the scope of operation, structure of costs
and cash flows in case of materially relevant fluctuations in orders have been determined.
OPERATING COSTS
Optimisation activities relating to the cost control shall be carried out for the control of operations
in a crisis situation.
• Materials and raw materials, with temporarily favourable forward purchases of
raw materials with additionally accelerated development of supply sources in
Asia, in other dollar purchasing markets and in the countries of the South-Eastern
Europe; a decrease in costs of raw materials in world markets shall have a
certain positive impact on the cost structure,
• services referring to the control activities
• costs of logistics that will depend on oil prices in the market and new negotiations
with the providers of such services,
• costs of market communications that shall be limited exclusively to the activities
referring directly to sales promotion,
• all kinds of general costs related to the performance of overhead activities,
• labour – our objective is higher productivity and flexibility due to better organisation
of work and better adjustment of labour costs due to the level of orders
in scope of the social agreement.
In spite of a large share in costs of material and raw materials being almost completely changeable
costs that exceed 60 % in the structure of costs the Household Appliances Division has a high
share of fixed costs.
The adjustment of costs to the scope of production and sales is of key importance for the
achievement of the planned profitability of the Division.
FREE CASH FLOW
The projects of process arrangement and economic are at the implementation stage and they will
enable quick introduction of changes, optimisation of processes and reduction in current capital
and complexity.
The results will reflect in the planned decrease in current assets (inventories, receivables), which
will contribute to the increase in free cash flow and thus to the decrease in the financial liabilities
of the Group.

66
2008
In the past years, significantly more revenue was invested in the development (Capex) than in case
of the competitors, and thus the investment activities can be substantially reduced in the period of
difficult liquidity.
The investment policy will be extremely selective, focused exclusively on the development of
new products and sales activities or only those investments that are most urgent for further
development. The planned share of investments in sales revenue is lower than 3 %.
POSSIBILITY OF REVIEWING THE BUSINESS PLAN
The year 2009 will be a milestone in many respects and also from the aspect of annual planning.
The business plant contains already a certain decrease in the scope of business activities and
implementation of some measures. In case of deepening crisis some additional measures shall
be introduced for the achievement of the objectives set. There is high probability that due to the
growing crisis the adopted business plant shall be adjusted to the new conditions of the operation
in crisis after the end of the first quarter.
Irrespective of the crisis Gorenje boldly faces the challenges of the year 2009 and we will try to do
everything to neutralise its negative impact.

67
3.13 REPORT ON SOCIAL
RESPONSIBILITY
3.13.1 RESPONSIBILITY TO EMPLOYEES
A great emphasis has been places on education, human resource development, care for improvement
and maintenance of health, and development of good mutual relations.
Share of
employees in
Slovenia and
abroad as of
31 December
2007
Employees
in Slovenia
77.8%
Employees
abroad
22.4%
2008
Employees
in Slovenia
75.2%
Employees
abroad
24.8%
No. of employees per division
As of 31 December
Average in the year
2008 2007 2008 2007
Home Appliances Division 9,306 9,381 9,384 9,465
Home Interior Division 1,076 1,163 1,134 1,155
Ecology, Energy and Services Division 941 866 914 836
Total 11,323 11,410 11,432 11,456
EDUCATION AND HUMAN RESOURCES DEVELOPMENT
Education and training have been based on a concept of a leaning company.
The activities have been focused on the awareness of the complete company management and
systematic work in the area of creativity, encouragement and remuneration of innovative individuals
and groups.
In the parent company 4,541 employees of 86 % of all received training
Traditional training forms as results of our own knowledge: school of successful management for
masters, Gorenje Management Academy for your forward-looking colleagues and team-building
training.

68
2008
A possibility of further training to obtain a higher degree of formal education (332 students included
in off-the-job training, to obtain a higher degree in technical professions, mostly in mechanical
engineering, electro-techniques and economy).
Care for constant flow of human resources with appropriate scholarship policy, mainly for occupations
in shortage. At secondary-school level 41 students, 113 at graduate level and 4 students at
post-graduate level. Three scholarships were granted for technical studies in Serbia.
The assessment process in the assessment, development and promotion of an individual enables
collection of objective data on intellectual and personal characteristics and on assistance in recruiting.
The annual assessment method is used for the selection of appropriate colleagues for a new or
vacant job and taking decisions on promotion.
A survey has been conducted in order to establish professional desires and wills of forward-looking
employees; it presents their satisfaction, motivation, innovativeness and effectiveness. The results
show the harmonisation of professional wills and objectives of the colleagues with the objectives
of the company.
Survey of
changes in
educational
structure of
employees
466
730
2,183
3,463
501
881
2,451
3,891
600
989
2,686
3,616
3,714
3,732
3,541
2006 2007 2008
VII.+VIII. 7% 8% 9%
VI. 4% 4% 5%
V. 21% 21% 23%
III.+IV. 33% 34% 32%
I.+II. 35% 33% 31%
CARE FOR IMPROVEMENT AND MAINTENANCE OF THE EMPLOYEES’ HEALTH
The activities have been focused on preventive measures, solving of topical problems and encouragement
of healthy life style.
The working conditions in production have been improved by the introduction of the project of
ergonomic arrangement of work places.
An emphasis has been placed on health education and preventive measures: workshops Cook
healthy, where the employees actively participated with proposals of healthy recipes and have
been prepared with the help of a cook master and expert in nutrition and eaten in the kitchen of
the show room.
Informal socialising encourages good climate and co-operation; a great sports-social event
“Gorenjada” was organised for this purpose also for family members.
Gorenje, d.d., has acquired the OHSAS 1801 certificate for a system of safe and healthy work.

69
3.13.2 RESPONSIBILITY TO USERS OF PRODUCTS AND SERVICES
ASSURANCE OF PRODUCT QUALITY
Product safety has been based on the results and findings collected in international and regional
standards. The requirements of standards have been considered in the early stages of each product,
in the development, defining of requirements to suppliers, checking safety parameters in production
and after the completion of production.
Safety parameters have been tested in own and top foreign independent accredited laboratories.
The experts have been actively included in the work of international, regional and national standardisation
technical committees.
The state-of-the-art knowledge and considerations relating to the procedures of new standard
preparation from the field of safety of electrical household and similar appliances, gas devices and
electromagnetic compatibility have been introduced into development of the existing and new
products.
ASSURANCE OF ENVIRONMENTALLY FREINDLY PRODUCTS
Gorenje is a member of the European Committee of Domestic Equipment Manufacturers (CECED)
through which it is a partner and a discussion partner of the European Commission in the preparation
of legislation. The mission of the committee is to improve technical characteristics along with
a reduction in environmental influence and representation of the members’ interests.
Numerous studies (i.e. relevant studies on consumption of stand-by household appliances) have
been conducted in scope of the Eco design directive.
A target group (Task Force Energy Label) representing the centre of activity has been appointed
within CECED in order to revise the framework directive on energy labels Task Force Energy Label.
The new label shall enable transition without degradation of the existing energy-saving appliances;
the introduction shall not cause any lack of clarity and confusion and shall stimulate producers to
develop even better energy efficiency of appliances.
FULFILMENT OF GUARANTEE AND SERVICE OBLIGATIONS
One of the fundamental strategic objectives and the basic mission of Gorenje is provision of satisfaction
to a product user during its useful life. Repair services are guarantees to product users during
the time of legal obligations. The guarantee conditions and service obligations exceed the minimum
requirements, repair services outside the legal period is also possible.
Repair services of products in use and provision of spare parts in the market belongs to the management
of quality and service assurance process. The quality of products in use and quality of
services per sales market is systematically monitored and up-graded on the basis of the results.
3.13.3 RESPONSIBILITY TO THE NATURAL ENVIRONMENT
HOUSEHOLD APPLIANCES DIVISION
The requirements of the Regulation on registration, evaluation, authorisation of chemicals legislation
(REACH) that were put into force on 1 June 2008 were met in the parent company. With respect
to the requirements of the regulation Gorenje is further use since it purchases chemicals in

70
2008
the EU market. In order to ensure compatibility by the regulation the Company has limited its purchases
from suppliers of registered substances and materials/components that do not contain any
SVHC substances (Substances of Very High Concern).
On 29 August 2008 the environmental agency of the Republic of Slovenia issued to Gorenje d.d.
an environmental permit for the operation of the device that may cause large-scale environmental
pollution, for the operation of the device for surface treatment of metals with the use electrolytic
or chemical substances with a total volume (without rinsing) of 215.4 m 3 . The environmental permit
defines the measures and requirements for the prevention and reduction in emissions, for waste
management and for efficient energy use, permitted maximum limits of emissions, obligations of
an operator relating to monitoring performance and reporting and operating conditions that the
operator shall fulfil due to the insurance of environmental protection.
A regular audit of environmental management system was conducted in the company Gorenje
I.P.C. in accordance with the requirements of ISO 14001 and the EMAS regulation. As the second
company in Slovenia the Company has been entered in the EMAS register.
In the plant in Valjevo, Serbia the majority of activities was related to the harmonisation of the
operation with the new legislative requirements. An activity program for obtaining the integral of
the environmental permit was confirmed in the republic of Serbia last year.
The upgrade of old ecological burdening continued in the factory Mora Moravia in the Czech Republic;
it started in the year 2002 and the its total costs amounting to EUR 6.1 million shall be paid
by the Czech state. Numerous measures decreased the quantities of produced hazardous and deposited
waste and water consumption. The new waste water treatment plant achieves a high level
of waste water purification and the result is exemption from payment of the environmental tax.
HOME INTERIOR DIVISION
Changes in the legislative requirements relating to all environmental segments being introduced
per production programme have been monitored in Home Interior Division of Gorenje. Another integral
IPPC environmental permit has been obtained for the kitchen programme and the ceramics
programme got it a year ago.
The solution of problems of emission of volatile organic substances that has to be found for the
kitchen programme depends on the development of distempers and varnishes in the European /
world market. There have been no appropriate materials in the market and therefore the Ministry
has prolonged the deadline for the implementation of the plan of reducing HOS emissions
until the year 2010. The quantities of some hazardous waste were successfully reduced in the
bathroom programme and in accordance with the plan the emissions of volatile organic substances
decreased.
THE ECOLOGY, ENERGY AND SERVICES DIVISION
185 companies that trusted the company ZEOS to meet the obligations of collecting and managing
waste electrical and electronic equipment on their behalf completely fulfilled the obligation.
Through a network of joint ZEOS scheme 30 % more electrical and electronic equipment were
collected and processes than in the year 2007.
The efficiency of the joint ZEOS scheme was recognised in the former Yugoslav countries and
thus the company was invited to co-operate in drawing up the legislation and implementation of
the waste electrical and electronic equipment management system.

71
The Kemis Group has co-operated in the continuation of rehabilitation of the Goudron-like cave
in Pesnica that belongs to the largest projects in Slovenia. A building permit has already been
obtained and the construction of a recycling centre in Vrhnika has started. In Croatia a plot of
27,000 m2 has been purchased on the location Jastrebarsko in order to carry out all the activities
on one location.
An audit of the environmental management system based on ISO 14001 was conducted in the
company Kemis-Termoclean in Croatia. The relevant environmental aspects have been reviewed
in the parent company, a review of risk assessment has been prepared in form of documentation
and operation has been brought closer to the requirements of standards ISO 14001 and ISO
18001. The target of the year 2009 is compatibility of operation with the standards mentioned.
3.13.4 RESPONSIBILITY TO THE NARROW AND BROADER
SOCIAL COMMUNITY
Various activities for the creation of better working conditions and life of the employees and their
families and especially the operation of different institutions and societies were mostly supported
in the local environment.
• in the field of culture: Borštnik Meeting in the Slovene National Theatre Maribor,
the event ‘Traditional days of comedy’ hosted by the Slovene People’s Theatre
Celje, the 2008 Lirikonfest gathering of Slovene writers in Velenje, the Biennial
of industrial design BIO 21, and the publication of the book ‘Miti in legende
iz Gorenja’.
• in the area of education: assets for schools where Gorenje has its plants, the programme
of ‘best secondary school graduates’, donations to technical schools in
Stara Pazova and Valjevo in form of school desks, Gorenje’s first discussion tournament
for secondary schools held within the institutes ‘Za in proti’ and ‘Debatni
klub Velenje’, as well as ‘Zavod Šport&mediji’ including a series of events e.g.
‘Delujmo ozaveščeno za šolajočo mladino v Šaleški dolini’.
• contributions in the area of health, humanitarian and environmental activities:
providing a vehicle for transportation of members of the Association of paraplegics
of South-East Styria, conducting humanitarian auctions in co-operation
with the association Europa Donna; event ‘Prihranimo do 30 % energije s pranjem
pri 30 °C’ held in Ljubljana and Maribor in co-operation with Ariel and the
support of the Jožef Stefan Institute, the Energy Efficiency Centre, and Slovenia’s
Bicycle Association.
• In the field of sports Gorenje is a general sponsor of the Nordic team of Skiing
Association of Slovenia, general sponsor of the handball club Gorenje Velenje, it
co-financed the organisation of the FIS cup in ski jumps in Velenje, co-financed
the organisation of the international table tennis tournament in Velenje that belongs
to the world cup; contributed funds to amateur societies and activities
whose objective was direction of the young in sports activities as contribution
to healthy and useful free time spending.
• Gorenje has supported the activities of the Gorenje Pension Club that joins
former employees in order to encourage the quality of live and acting.
• It has supported the Sports club where a whole range of organised recreational
activities is available free of charge and the Culture club that organised events
in the field of art and culture.
At the end of the year some planed activities were limited due to the financial crisis and in the year
2009 the funds for sponsorship and donations will be limited to the contractual obligations previously
adopted or to the fulfilment of long-term contracts.

72
2008
3.14 ANALYSIS OF BUSINESS
PERFORMANCE OF THE GORENJE
GROUP
OPERATING CONDITIONS IN THE YEAR 2008
A key characteristic of operation was worsening of operating quality of the Group in the conditions
of the global financial and economic crisis that importantly contributed to the decline
in scope of business activities in the last quarter of the year 2008. The reduction in the large
number of November and December orders when compared to the anticipated scope is the main
reasons that the assessment of net profit changed to the end of the year, which resulted in the
non-achievement of the objectives planned.
ACHIEVEMENT OF OPERATING OBJECTIVES AND ANALYSIS OF ACHIEVEMENT
CIRCUMSTANCES
The management board of Gorenje, d.d. has assessed that the Gorenje Group continued to increase
its sales revenue and EBITDA in spite of difficult conditions, especially in the last quarter
that was the most difficult in the history. Minimum growth of business activities and low utilisation
of production capacities resulted in profit that is lower than in the year 2007, at the level of the operating
profit and at the level of net profit .
In thousand EUR 2008 Plan 2008 2007 2008/Pl.2008 2008/2007
Consolidated revenue 1,330,753 1,300,352 1,293,438 102.3 102.9
Gross operating yield 1,367,456 1,319,415 1,323,973 103.6 103.3
EBITDA 94,014 100,736 92,857 93.3 101.2
Total profit 15,473 31,503 29,400 49.1 52.6
Net profit 10,181 26,503 23,664 38.4 43.0
Average no. of employees 11,432 11,522 11,456 99.2 99.8
In spite of difficult operating circumstances the Gorenje Group reached the growth in the scope of
activities, which is the positive impact of the company Atag taken over in July (its scope of sales
from the month of take-over on amounted to EUR 72.7 million and EBITDA to EUR 8.7 million. The
exceeding is mostly a result of increase in revenue of the Ecology, energy and services division, but
the scope of operation in the Home Appliances Division and Home Interior was below the level of
a comparable year. This is mostly the influence of the financial crisis and recession on the sales volume
in the last quarter of 2008.
Revenue per employee
in 000 EUR
116
112
108
112.9
116.4
1200
900 Revenue in mill EUR
600
104
300
1,293.4
1.330.8
2007 2008
Revenue per employee exceeded the revenue of the year 2007 (by 3.1 %) and the revenue anticipated
for 2008 (by3.1 %).

73
Costs of goods, materials and services accounted for 75.2 % in the structure of gross total income,
which is 0.7 percentage point less than in the year 2007. Their value amounted to EUR 1,027,908
thousand, which is an increase of 2.3 % over the year 2007.
The growth in the costs mentioned was slower than the growth in gross total income and revenue,
which is mainly a result of restructuring of sales range, replacement of expenses components with
less expensive ones from other raw material markets and forward purchases of raw materials.
Added value achieved EUR 322,793 thousand (98.9 % of the annual plan achieved), which is a 23.6
% share in the structure of gross income. When compared to the year 2007 it increased by 5.6 %.
The growth quicker than the growth of consolidated sales revenue is a consequence of the lower
growth in costs of goods, materials and raw materials. Added value per employee amounted to
EUR 28,236 thousand and thus increased by 5.9 % over the year 2007.
7.6
80
as % in gross
operating yield
7.2
6.8
7.0%
6.9%
60 EBITDA
(in mil. EUR)
40
6.4
20
92.9
94.0
2007 2008
Earnings before interest, taxes, depreciation and amortisation (EBITDA), increased by 1.2 %.
A minimal increase in costs of goods, materials and services compared with the scope of business
activities had a favourable influence on the growth.
Labour costs had a strong negative influence (harmonisation with the employment legislation and
amortisation/depreciation expense. Otherwise Atag, the company taken-over had a very favourable
influence on the operating profit of the Group.
Total profit or profit before taxation achieved 52.6 % of the profit earned in the year 2007. Due
to the negative influence of the growth of financial movements the total profit did not follow the
growth of EBITDA. Impairment of investments in accordance with the IFRS, increase in interest expenses
due to the increase in reference interest rates in the first ten months of the year and higher
borrowings materially contributed to the higher negative result of financial movements. Due to
the impairment of East-European currencies in comparison with Euro foreign exchange gains and
losses from revaluation of receivables and liabilities had a negative influence on the result of financial
movements.
Net profit was lower than the total profit due to the higher taxation of profit and was lower by 57.0
% over the year 2007. The earned profit is also by EUR 7.6 million lower than the profit evaluated
at the beginning of November 2007 that was included in the plan documents of the Group for the
year 2009. An important part of deviations is a result of influences of the global financial and economic
crisis in the last two months of the year 2008 that caused material impairment of operating
profit efficiency in some of the companies operating in the area of West and South-East Europe
(the net effect amounts to EUR 3.4 million).
An increase in negative result of the financial result of financial movements of the last quarter had
a material impact on the low level of operating profit efficiency of the Group. By the impairment
of investments, foreign exchange losses and their hedging the operating profit was worsened by
a net effect of EUR 4.2 million

74
2008
As of 31 December 2008 the total assets of the Gorenje Group amounted to EUR 1,257,732 thousand,
which is an increase of 25.7 % over the end of the year 2007.
The value of long-term assets increased nominally mostly because of the investments made, revaluation
of land to fair value and inclusion of the companies taken over in the Group. Their share
increased by 3.4 percentage points in the asset structure and accounted for 48.2 % of assets.
At the end of the year current assets were higher by 18.0 % over the end of the year 2007, which
is mainly a consequence of the increase in the value of inventories, operating and other receivables
and joining of new companies to the Gorenje Group.
Assets of
the Gorenje
Group
(in million
EUR)
1,200
1,000
800
600
1,000.8
mio EUR
44.8%
1,257.7
mio EUR
48.2%
Current assets
400
200
55,2%
2007 2008
51.8% Long-term assets
Equity and
liabilities of
the Gorenje
Group
(in million
EUR)
1,200
1,000
800
600
1,000.8
mio EUR
44.1%
1,257.7
mio EUR
45.2%
Short-term liabilities
400
20.8%
23.4%
Long-term liabilities
200
35.1%
2007 2008
31.4% Equity
At the end of the year 2008 the equity amounted to EUR 394,522 thousand and increased by 12.4
% over the end of the year 2007.
The equity increased nominally mostly because of the earned net profit , disposal of own shares
and revaluation of land to fair value; the revaluation of investments and hedging of cash flows to
fair value and the amount of dividends paid and remuneration to the supervisory board in accordance
with the resolution of the general meeting influenced the decrease. Its share decreased in the
structure of liabilities due to the structural increase in financial liabilities.
Short-term operating liabilities are higher by EUR 30,934 thousand which had a favourable influence
on the net current assets. Their share in the structure of liabilities decreased by 3.2 percentage
points.
Financial liabilities increased by EUR 175,280 thousand or 56.1 %. More than half of this amount includes
a long-term loan for the purchase of the company Atag. In the structure of financial liabilities
long-term financial liabilities accounted for 45.9 % and the rest was short-term financial liabilities.
Total long-term assets and portion of current assets have been covered by durable and longterm
sources of finance which provides additional financial stability.

ACCOUNTING
REPORT

78
2008
4.1 ACCOUNTING REPORT
PREPARED UNDER IFRS
4.1.1 ACCOUNTING REPORT OF THE GORENJE GROUP
4.1.1.1 CONSOLIDATED FINANCIAL STATEMENTS OF THE GORENJE GROUP
Consolidated income statement of the Gorenje Group
in TEUR Notes 2008 2007
Revenue 13 1,330,753 1,293,438
Changes in inventories 10,362 5,170
Other operating income 14 26,341 25,365
Gross revenue 1,367,456 1,323,973
Cost of goods, materials and services 15 -1,027,908 -1,004,764
Employee benefits expense 16 -226,487 -208,553
Amortisation and depreciation expense 17 -57,121 -53,211
Other operating expenses 18 -19,047 -17,799
Results from operating activities 36,893 39,646
Share in profit of associates 0 8
Finance income 19 19,603 18,455
Finance expenses 19 -41,023 -28,709
Net finance expense 19 -21,420 -10,254
Profit before tax 15,473 29,400
Income tax expense 20 -5,292 -5,736
Profit for the period 10,181 23,664
Attributable to minority interest 1,309 992
Attributable to equity holders of the parent 8,872 22,672
Basic and diluted earnings per share (in EUR) 0.66 2.03

79
Consolidated balance sheet of the Gorenje Group
in TEUR Notes 2008 2007
ASSETS 1,257,732 1,000,788
Non-current assets 606,027 448,694
Intangible assets 21 162,986 25,094
Property, plant and equipment 22 412,953 384,791
Investment property 23 7,090 10,174
Non-current investments 24 12,721 19,217
Investments in associates 0 12
Deferred tax assets 25 10,277 9,406
Current assets 651,705 552,094
Assets classified as held for sale 954 1,062
Inventories 26 253,004 217,471
Current investments 27 64,470 27,110
Trade receivables 28 262,017 258,535
Other current assets 29 43,866 27,904
Current tax assets 3,279 2,328
Cash and cash equivalents 30 24,115 17,684
LIABILITIES 1,257,732 1,000,788
Equity 31 394,522 350,985
Share capital 58,546 58,546
Capital surplus (share premium) 158,487 143,714
Legal reserves and statutory reserves 21,697 45,034
Retained earnings 110,324 84,025
Own shares -3,170 -27,693
Translation reserve 20,187 14,541
Fair value reserve 15,208 21,960
Equity attributable to equity holders of the parent 381,279 340,127
Minority interest 13,243 10,858
Non-current liabilities 294,893 208,683
Provisions 32 55,366 51,653
Deferred income from government grants 33 8,936 8,717
Deferred tax liabilities 25 6,472 3,211
Non-current financial liabilities 34 224,119 145,102
Current liabilities 568,317 441,120
Current financial liabilities 35 263,676 167,413
Trade payables 36 223,660 220,261
Other current liabilities 37 79,164 51,546
Current tax liabilities 1,817 1,900

80
2008
Consolidated cash flow statement of the Gorenje Group
in TEUR Notes 2008 2007
A. CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the period 10,181 23,664
Adjustments for:
Depreciation of property, plant and equipment 21 51,900 49,788
Amortisation of intangible assets 22 5,221 3,423
Impairment loss 0 711
Investment income 19 -19,603 -18,455
Finance expenses 19 41,023 25,296
Share of profit/loss of associates 0 -8
Gain on sale of property, plant and equipment 14 -1,807 -1,983
Gain from revaluation of investment property 14 -2,566 0
Income tax expense 20 5,292 5,736
Operating profit before changes in net
operating current assets and provisions
89,641 88,172
Change in trade receivables -17,336 -14,847
Change in inventories -35,533 -24,769
Change in provisions 3,932 4,009
Change in trade and other liabilities 31,017 -3,421
Cash generated from operations -17,920 -39,028
Interest paid -26,019 -19,534
Income taxes paid -6,786 -5,338
Indemnities received 0 1,850
Net cash from operating activities 38,916 26,122
B. CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property, plant and
equipment
2,398 4,502
Proceeds from sale of investments 6,208 0
Interest received 7,208 4,095
Dividends received 1,048 1,701
Disposal of subsidiary, net of cash disposed of 641 4,288
Acquisition of subsidiary, net of cash acquired -95,011 -6,109
Acquisition of property, plant and equipment -71,289 -69,428
Acquisition of other investments -37,023 1,222
Acquisition of intangible assets -5,518 -4,678
Net cash used in investing activities -191,338 -64,407
C. CASH FLOWS FROM FINANCING ACTIVITIES
Capital increase 0 54,900
Repurchase of own shares -112 0
Borrowings / Repayment of borrowings 164,875 -3,241
Dividends and premiums paid -5,910 -4,736
Net cash used in financing activities 158,853 46,923
Net increase/decrease in cash and cash
equivalents
6,431 8,638
Cash and cash equivalents at beginning of
period
17,684 9,046
Cash and cash equivalents at end of period 24,115 17,684

82
2008
Consolidated statement of changes in equity of the Gorenje Group
in TEUR
Share
capital
Capital surplus
(share
premium)
Legal and
statutory
reserves
Retained
earnings
Opening balance at 1 Jan 2008 58,546 143,714 45,034 84,025
Fair value reserve (investments)
Fair value reserve (land)
Fair value reserve
(cash flow hedge)
Translation reserve
Deferred tax liabilities
Total revenue and expenses
recognised directly in equity
Net profit or loss for the period 8,872
Total revenue and expenses 8,872
Creation of reserve for own
shares
112 -112
Creation of statutory reserves 1,186 -1,186
Dividend payout -5,781
Remuneration of the Supervisory
Board under the resolution of the
-129
Shareholders' Meeting
Disposal of own shares 14,773
Reversal of reserve for own
shares
-24,635 24,635
Increase in minority interest
Closing balance at 31 Dec 2008 58,546 158,487 21,697 110,324
in TEUR
Share
capital
Capital surplus
(share
premium)
Legal and
statutory
reserves
Retained
earnings
Opening balance at 1 Jan 2007 50,910 96,450 43,713 67,629
Fair value reserve (investments)
Fair value reserve (land)
Translation reserve
Deferred tax liabilities -219
Total revenue and expenses
recognised directly in equity
-219
Net profit or loss for the period 22,672
Total revenue and expenses 22,453
Capital increase 7,636 47,264
Creation of statutory reserves 1,321 -1,321
Dividend payout -4,627
Remuneration of the Supervisory
Board under the resolution of the
-109
Shareholders' Meeting
Increase in minority interest
Closing balance at 31 Dec 2007 58,546 143,714 45,034 84,025

83
Own
shares
Translation
reserve
Fair value
reserve
Equity attrib. to
equity holders of
the parent
Minority
interest
Total
-27,693 14,541 21,960 340,127 10,858 350,985
-6,171 -6,171 -6,171
9,243 9,243 9,243
-8,660 -8,660 -8,660
5,646 5,646 5,646
-1,164 -1,164 -1,164
5,646 -6,752 -1,106 -1,106
8,872 1,309 10,181
5,646 -6,752 7,766 1,309 9,075
-112 -112 -112
0 0
-5,781 -5,781
-129 -129
24,635 39,408 39,408
0 0
0 1,076 1,076
-3,170 20,187 15,208 381,279 13,243 394,522
Own
shares
Translation
reserve
Fair value
reserve
Equity attrib. to
equity holders of
the parent
Minority
interest
Total
-27,693 15,556 7,619 254,184 249 254,433
3,222 3,222 3,222
10,797 10,797 10,797
-1,015 -1,015 -1,015
322 103 103
-1,015 14,341 13,107 13,107
22,672 992 23,664
-1,015 14,341 35,779 992 36,771
54,900 54,900
0 0
-4,627 -4,627
-109 -109
0 9,617 9,617
-27,693 14,541 21,960 340,127 10,858 350,985

84
2008
4.1.1.2 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Reporting entity
Gorenje, d.d. is a company domiciled in Slovenia. The address of the Company’s registered office
is Partizanska 12, 3503 Velenje. The consolidated financial statements of Gorenje, d.d., at and for
the year ended 31 December 2008 comprise the parent company and its subsidiaries (together referred
to as the “Group”), and the Group’s interests in jointly controlled entities. The Group is mainly
engaged in the production and sale of household appliances.
2. Basis of preparation
(a) Statement of compliance
The consolidated financial statements have been prepared in accordance with International Financial
Reporting Standards (IFRSs) as adopted in EU, and provisions of the Companies Act.
The financial statements were approved by the Management Board of Gorenje, d.d., on 3 April
2009.
(b) Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis, except for
the following items which are measured at fair value:
• • derivative financial instruments,
• • available-for-sale financial assets,
• • investment property.
The methods used to measure fair values are discussed further in note 4.
(c) Functional and presentation currency
These consolidated financial statements are presented in euro, which is the Company’s functional
currency. All financial information presented in euro has been rounded to the nearest thousand.
(d) Use of estimates and judgements
The preparation of financial statements in conformity with IFRSs requires management to make
judgements, estimates and assumptions that affect the application of accounting policies and the
reported amounts of assets, liabilities, income and expenses. Actual results may differ from these
estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimates are revised and in any future periods
affected.
In particular, information about significant areas of estimation uncertainty and critical judgements
in applying accounting policies that have the most significant effect on the amounts recognised in
the financial statements is included in the notes below:
Note 10, 11
Note 33
Note 33
Note 33
Note 39
– acquisition and disposal of companies
– measurement of liabilities for termination benefits and jubilee benefits
– provisions for litigations
– provisions for warranties
– valuation of financial instruments

85
3. Significant accounting policies
The accounting policies set out below have been applied consistently to all periods presented in
these consolidated financial statements, and have been applied consistently by Group entities.
(a) Basis of consolidation
(i) Subsidiaries
Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to
govern the financial and operating policies of an entity so as to obtain benefits from its activities. In
assessing control, potential voting rights that presently are exercisable are taken into account. The
financial statements of subsidiaries are included in the consolidated financial statements from the
date that control commences until the date that control ceases. The accounting policies of subsidiaries
have been changed when necessary to align them with the policies adopted by the Group.
(ii) Acquisitions from entities under common control
Business combinations arising from transfers of interests in entities that are under the control of
the shareholder that controls the Group are accounted for as if the acquisition had occurred at the
beginning of the earliest comparative period presented or, if later, at the date that common control
was established; for this purpose comparatives are restated. The assets and liabilities acquired
are recognised at the carrying amounts recognised previously in the Group’s controlling shareholder’s
consolidated financial statements. The components of equity of the acquired entities are added
to the same components within Group equity except that any share capital of the acquired entities
is recognised as part of share premium. Any cash paid for the acquisition is recognised directly
in equity.
(iii) Jointly controlled operations
A jointly controlled operation is a joint venture carried on by each venturer using its own assets in
pursuit of the joint operations. The consolidated financial statements include the assets that the
Group controls and the liabilities that it incurs in the course of pursuing the joint operation, and the
expenses that the Group incurs and its share of the income that it earns from the joint operation.
(iv) Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group
transactions, are eliminated in preparing the consolidated financial statements. Unrealised
gains arising from transactions with equity accounted investees are eliminated against the investment
to the extent of the Group’s interest in the investee. Unrealised losses are eliminated in the
same way as unrealised gains, but only to the extent that there is no evidence of impairment.
(b) Foreign currency
(i) Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of Group entities
at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated
in foreign currencies at the reporting date are retranslated to the functional currency at the exchange
rate at that date. The foreign currency gain or loss on monetary items is the difference between
amortised cost in the functional currency at the beginning of the period, adjusted for effective
interest and payments during the period, and the amortised cost in foreign currency translated
at the exchange rate at the end of the period. Non-monetary assets and liabilities denominated in
foreign currencies that are measured at fair value are retranslated to the functional currency at the
exchange rate at the date that the fair value was determined. Foreign currency differences arising
on retranslation are recognised in profit or loss, except for differences arising on the retranslation of
available-for-sale equity instruments, a financial liability designated as a hedge of the net investment
in a foreign operation, or qualifying cash flow hedges, which are recognised directly in equity.

86
2008
(ii) Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising
on acquisition, are translated to euro at exchange rates at the reporting date. The income and
expenses of foreign operations, excluding foreign operations in hyperinflationary economies, are
translated to euro at exchange rates at the dates of the transactions.
Foreign currency differences arising from translation are recognised directly in equity. Since Group’s
date of transition to IFRSs, such differences have been recognised in the foreign currency translation
reserve (FCTR). When a foreign operation is disposed of, in part or in full, the relevant amount
in the FCTR is transferred to profit or loss.
(c) Financial instruments
(i) Non-derivative financial instruments
Non-derivative financial instruments comprise investments in equity and debt securities, trade receivables,
cash and cash equivalents, loans and borrowings, and trade and other payables.
Non-derivative financial instruments are recognised initially at fair value plus, for instruments not
at fair value through profit or loss, any directly attributable transaction costs. Subsequent to initial
recognition non-derivative financial instruments are measured as described below.
Attributable transaction costs are recognised in profit or loss. The exception are investments in equity,
where the fair value of financial instruments is increased by transaction costs.
A financial instrument is recognised if the Group becomes a party to the contractual provisions of
the instrument. Financial assets are derecognised if the Group’s contractual rights to the cash flows
from the financial assets expire or if the Group transfers the financial asset to another party without
retaining control or substantially all risks and rewards of the asset. Regular way purchases and
sales of financial assets are accounted for at trade date, i.e. the date that the Group commits itself
to purchase or sell the asset. Financial liabilities are derecognised if the Group’s obligations specified
in the contract expire or are discharged or cancelled.
Cash and cash equivalents comprise cash in hand, cash in banks, and call deposits. Bank overdrafts
that are repayable on demand and form an integral part of the Group’s cash management are included
as a component of cash and cash equivalents for the purpose of the statement of cash
flows.
Accounting for finance income and expense is discussed in note 3(o).
Available-for-sale financial assets
The Group’s investments in equity securities and certain debt securities are classified as available-for-sale
financial assets. Subsequent to initial recognition, they are measured at fair value and
changes therein, other than impairment losses (see note 3(i)(i)), and foreign exchange gains and
losses on available-for-sale monetary items (see note 3(c)(i)), are recognised directly in equity.
When an investment is derecognised, the cumulative gain or loss in equity is transferred to profit
or loss.
The Group’s available-for-sale financial assets also include assets that could not be measured at fair
value. The shares of these companies are not listed. They are measured on the basis of available
data on the latest market transactions.
Other
Other non-derivative financial instruments are measured at amortised cost using the effective interest
method, less any impairment losses.

87
(ii) Derivative financial instruments
The Group holds derivative financial instruments to hedge its foreign currency and interest rate risk
exposures. Embedded derivatives are separated from the host contract and accounted for separately
if the economic characteristics and risks of the host contract and the embedded derivative
are not closely related, a separate instrument with the same terms as the embedded derivative
would meet the definition of a derivative, and the combined instrument is not measured at fair value
through profit or loss.
Derivatives are recognised initially at fair value; attributable transaction costs are recognised in
profit or loss when incurred. Subsequent to initial recognition, derivatives are measured at fair value,
and changes therein are accounted for as described below.
Cash flow hedges
Changes in the fair value of the derivative hedging instrument designated as a cash flow hedge are
recognised directly in equity to the extent that the hedge is effective.
If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated
or exercised, then hedge accounting is discontinued prospectively. The cumulative gain or
loss previously recognised in equity remains there until the forecast transaction occurs. When the
hedged item is a non-financial asset, the amount recognised in equity is transferred to the carrying
amount of the asset when it is recognised. In other cases the amount recognised in equity is transferred
to profit or loss in the same period that the hedged item affects profit or loss.
Economic hedges
Hedge accounting is not applied to derivative instruments that economically hedge monetary assets
and liabilities denominated in foreign currencies. Changes in the fair value of such derivatives
are recognised in profit or loss as part of foreign currency gains and losses.
(iii) Share capital
Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary
shares and share options are recognised as a deduction from equity, net of any tax effects.
Repurchase of share capital (treasury shares)
When share capital recognised as equity is repurchased, the amount of the consideration paid,
which includes directly attributable costs, is net of any tax effects, and is recognised as a deduction
from equity. Repurchased shares are classified as treasury shares and are presented as a deduction
from total equity. When treasury shares are sold or reissued subsequently, the amount received is
recognised as an increase in equity, and the resulting surplus or deficit on the transaction is transferred
to retained earnings or reserves.
Dividends are recognised as a liability in the period in which they are declared by the shareholders’
meeting.
(d) Property, plant and equipment
(i) Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and
accumulated impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of
self-constructed assets includes the cost of materials and direct labour, any other costs directly at-

88
2008
tributable to bringing the asset to a working condition for its intended use, and the costs of dismantling
and removing the items and restoring the site on which they are located.
Borrowing costs related to the construction of property are recognised in profit or loss as incurred.
When parts of an item of property, plant and equipment have different useful lives, they are accounted
for as separate items of property, plant and equipment.
Fair value model or revaluation model is applied to land. Revaluation effects are recorded through
equity. Impairment loss of land whose value had previously been increased is directly charged
against revaluation surplus in equity, or else it is recognised in profit or loss. The revaluation of land
is based on an independent appraisal report. The requirement for revaluation of land is reassessed
annually by the Group.
.Gains and losses on disposal of an item of property, plant and equipment are determined by comparing
the proceeds from disposal with the carrying amount of property, plant and equipment and
are recognised net within “other operating income” in profit or loss. When revalued assets are sold,
the amounts included in the fair value reserve are transferred to retained earnings.
(ii) Reclassification to investment property
Property that is being constructed for future use as investment property is accounted for as property,
plant and equipment and measured at its cost until construction or development is complete,
at which time it is reclassified as investment property. Any gain or loss arising on re-measurement
to fair value is recognised in profit or loss.
(ii) Subsequent costs
The cost of replacing part of an item of property, plant and equipment is recognised in the carrying
amount of the item if it is probable that the future economic benefits embodied within the part
will flow to the Group and its cost can be measured reliably. The carrying amount of the replaced
part is derecognised. All other costs (such as the day-to-day servicing of property, plant and equipment)
are recognised in profit or loss as incurred.
(iv) Depreciation
Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives
of each part of an item of property, plant and equipment. Leased assets are depreciated over the
shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain
ownership by the end of the lease term. Land is not depreciated.
The estimated useful lives for the current and comparative periods are as follows:
buildings
plant and equipment
computer equipment
transportation vehicles
office equipment
tools
20-50 years
5-10 years
2-5 years
3-10 years
3-10 years
3-10 years
Depreciation methods, useful lives and residual values are reviewed at each reporting date.
(e) Intangible assets
(i) Goodwill
Goodwill (negative goodwill) arises on the acquisition of subsidiaries, associates and joint ventures.

89
Acquisitions on or after the date of transition to IFRS
For acquisitions on or after 1 January 2006, goodwill represents the excess of the cost of the acquisition
over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent
liabilities of the acquire. When the excess is negative (negative goodwill), it is recognised immediately
in profit or loss.
Acquisition of minority interests
Goodwill arising on the acquisition of a minority interest in a subsidiary represents the excess of the
cost of the additional investment over the carrying amount of the net assets acquired at the date of
exchange. It is recognised in equity.
Subsequent measurement
Goodwill is measured at cost less accumulated impairment losses.
(ii) Research and development
Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical
knowledge and understanding, is recognised in profit or loss when incurred.
Development activities involve a plan or design for the production of new or substantially improved
products and processes. Development expenditure is capitalised only if development costs can be
measured reliably, the product or process is technically and commercially feasible, future economic
benefits are probable, and the Group intends to and has sufficient resources to complete development
and to use or sell the asset. The expenditure capitalised includes the cost of materials, direct
labour and overhead costs that are directly attributable to preparing the asset for its intended use.
Borrowing costs related to the development of qualifying assets are recognised in profit or loss as
incurred. Other development expenditure is recognised in profit or loss as incurred.
Capitalised development expenditure is measured at cost less accumulated amortisation and accumulated
impairment losses.
(iii) Other intangible assets
Intangible asset with indefinite useful life (trade marks) are tested for impairment once a year. Other
intangible assets that are acquired by the Group, which have finite useful lives, are measured at
cost less accumulated amortisation and accumulated impairment losses.
(iv) Subsequent expenditure
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied
in the specific asset to which it relates. All other expenditure, including expenditure on internally
generated goodwill and brands, is recognised in profit or loss as incurred.
(v) Amortisation
Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful lives of
intangible assets, other than goodwill, from the date that they are available for use. The estimated
useful lives for the current and comparative periods are as follows:
patents and trademarks
capitalised development costs
5 - 10 years
5 - 10 years
(f) Investment property
Investment property is property held either to earn rental income or for capital appreciation or for
both, but not for sale in the ordinary course of business, use in the production or supply of goods

90
2008
or services or for administrative purposes. Investment property is measured at fair value (see note
4(iii)) with any change therein recognised in profit or loss.
When the use of a property changes such that it is reclassified as property, plant and equipment,
its fair value at the date of reclassification becomes its cost for subsequent accounting of depreciation.
(g) Leased assets
Leases in terms of which the Group assumes substantially all the risks and rewards of ownership
are classified as finance leases. Upon initial recognition the leased asset is measured at an amount
equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent
to initial recognition, the asset is accounted for in accordance with the accounting policy applicable
to that asset.
Other leases are operating leases. The leased assets are not recognised on the Group’s balance
sheet.
(h) Inventories
Inventories are measured at the lower of cost and net realisable value. The cost of inventories is
based on the first-in first-out principle, and includes expenditure incurred in acquiring the inventories,
production or conversion costs and other costs incurred in bringing them to their existing location
and condition. In the case of manufactured inventories and work in progress, cost includes
an appropriate share of production overheads based on normal operating capacity.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated
costs of completion and selling expenses.
(i) Impairment
(i) Financial assets
A financial asset is assessed at each reporting date to determine whether there is any objective evidence
that it is impaired. A financial asset is considered to be impaired if objective evidence indicates
that one or more events have had a negative effect on the estimated future cash flows of that
asset.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the
difference between its carrying amount, and the present value of the estimated future cash flows
discounted at the original effective interest rate. An impairment loss in respect of an available-forsale
financial asset is calculated by reference to its fair value.
Individually significant financial assets are tested for impairment on an individual basis. The remaining
financial assets are assessed collectively in groups that share similar credit risk characteristics.
All impairment losses are recognised in profit or loss. Any cumulative loss in respect of an availablefor-sale
financial asset recognised previously in equity is transferred to profit or loss.
An impairment loss is reversed if the reversal can be related objectively to an event occurring after
the impairment loss was recognised. For financial assets measured at amortised cost and availablefor-sale
financial assets that are debt securities, the reversal is recognised in profit or loss.
(ii) Non-financial assets
The carrying amounts of the Group’s non-financial assets, other than investment property, inventories
and deferred tax assets, are reviewed at each reporting date to determine whether there is
any indication of impairment. If any such indication exists, then the asset’s recoverable amount is
estimated. For goodwill and intangible assets that have indefinite lives or that are not yet availa-

91
ble for use, the recoverable amount is estimated annually prior to the preparation for the financial
statements.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its
fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current market assessments of the
time value of money and the risks specific to the asset. For the purpose of impairment testing, assets
are grouped together into the smallest group of assets that generates cash inflows from continuing
use that are largely independent of the cash inflows of other assets or groups of assets (the
“cash-generating unit”). The goodwill acquired in a business combination, for the purpose of impairment
testing, is allocated to cash-generating units that are expected to benefit from the synergies
of the combination.
An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds
its estimated recoverable amount. Impairment losses are recognised in profit or loss. Impairment
losses recognised in respect of cash-generating units are allocated first to reduce the carrying
amount of any goodwill allocated to the units and then to reduce the carrying amount of the
other assets in the unit (group of units) on a pro rata basis.
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment
losses recognised in prior periods are assessed at each reporting date for any indications that the
loss has decreased or no longer exists. An impairment loss is reversed if there has been a change
in the estimates used to determine the recoverable amount. An impairment loss is reversed only to
the extent that the asset’s carrying amount does not exceed the carrying amount that would have
been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
( j ) N o n - c u r r e n t a s s e t s h e l d f o r s a l e
Non-current assets (or disposal groups comprising assets and liabilities) that are expected to be
recovered primarily through sale rather than through continuing use are classified as held for sale.
Immediately before classification as held for sale, the assets (or components of a disposal group)
are re-measured in accordance with the Group’s accounting policies. Thereafter generally the assets
(or disposal group) are measured at the lower of their carrying amount and fair value less cost
to sell. Any impairment loss on a disposal group first is allocated to goodwill, and then to remaining
assets and liabilities on pro rata basis, except that no loss is allocated to inventories, financial assets,
deferred tax assets, employee benefit assets, investment property and biological assets, which
continue to be measured in accordance with the Group’s accounting policies. Impairment losses on
initial classification as held for sale and subsequent gains or losses on re-measurement are recognised
in profit or loss. Gains are not recognised in excess of any cumulative impairment loss.
(k) Employee benefits
(i) Short-term benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed
as the related service is provided.
(l) Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits
will be required to settle the obligation. Provisions are determined by discounting the expected
future cash flows at a pre-tax rate that reflects current market assessments of the time value of
money and the risks specific to the liability.

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2008
(i) Warranties
A provision for warranties is recognised when the underlying products or services are sold. The
provision is based on historical warranty data and a weighting of all possible outcomes against their
associated probabilities.
Provisions for warranties are decreased directly by expenditure for which they were set up. Such
expenditure is no longer recognised in the income statement for the period. At the end of the period
for which provisions are set up, the total amount of unused provisions is transferred to other
operating income.
(ii) Site restoration
In accordance with the Group’s published environmental policy and applicable legal requirements,
a provision for site restoration in respect of contaminated land, and the related expense, is recognised
when the land is contaminated.
(iii) Onerous contracts
A provision for onerous contracts is recognised when the expected benefits to be derived by the
Group from a contract are lower than the unavoidable cost of meeting its obligations under the
contract. The provision is measured at the present value of the lower of the expected cost of terminating
the contract and the expected net cost of continuing with the contract. Before a provision
is established, the Group recognises any impairment loss on the assets associated with that
contract.
(iv) Provisions for termination benefits and jubilee benefits
In accordance with the statutory requirements, the collective agreement, and the internal regulations,
the Group is to pay to its employees jubilee benefits and termination benefit upon retirement.
For these obligations, long-term provisions are formed.
Provisions are determined by discounting, at the balance sheet date, the estimated future benefits
in respect of termination benefits and anniversary bonuses. The obligation is calculated separately
for each employee by estimating the costs of termination benefit upon retirement and the costs
of all expected jubilee benefits until retirement. The selected discount rate is 7.75 % p.a. and represents
the rate of return on long-term government bonds. The calculation is performed by a certified
actuary using the projected unit method.
(m) Revenue
(i) Revenue from the sale of products, merchandise and materials
Revenue from the sale of products, merchandise and materials is measured at the fair value of the
consideration received or receivable, net of returns and allowances, trade discounts and volume rebates.
Revenue is recognised when the significant risks and rewards of ownership have been transferred
to the buyer, recovery of the consideration is probable, the associated costs and possible return
of goods can be estimated reliably, and there is no continuing management involvement with
the goods.
Transfers of risks and rewards vary depending on the individual terms of the contract of sale. For
sales of goods, transfer usually occurs when the product is received at the customer’s warehouse;
however, for some international shipments transfer occurs upon loading the goods onto the relevant
carrier.

93
(ii) Revenue from services
Revenue from services rendered is recognised in profit or loss in proportion to the stage of completion
of the transaction at the reporting date. The stage of completion is assessed by reference
to surveys of work performed.
(iii) Commissions
When the Group acts in the capacity of an agent rather than as the principal in a transaction, the
revenue recognised is the net amount of commission made by the Group.
(iv) Rental income
Rental income from investment property is recognised in profit or loss on a straight-line basis over
the term of the lease. Lease incentives granted are recognised as an integral part of the total rental
income, over the term of the lease.
(n) Government grants
Government grants are recognised initially as deferred income when there is reasonable assurance
that they will be received and that the Group will comply with the conditions associated with the
grant. Grants that compensate the Group for expenses incurred are recognised in profit or loss on
a systematic basis in the same periods in which the expenses are recognised. Grants that compensate
the Group for the cost of an asset are recognised in profit or loss on a systematic basis over
the useful life of the asset.
(o) Finance income and expense
Finance income comprises interest income on funds invested (including available-for-sale financial
assets), dividend income, gains on the disposal of available-for-sale financial assets, changes in the
fair value of financial assets at fair value through profit or loss, and gains on hedging instruments
that are recognised in profit or loss. Interest income is recognised as it accrues in profit or loss, using
the effective interest method. Dividend income is recognised in profit or loss on the date that
the Group’s right to receive payment is established, which in the case of quoted securities is the exdividend
date.
Finance expense comprises interest expense on borrowings, foreign exchange losses, impairment
losses recognised on financial assets, and losses on hedging instruments that are recognised in
profit or loss. All borrowing costs are recognised in profit or loss using the effective interest method.
(p) Income tax
Income tax expense comprises current and deferred tax. Income tax expense is recognised in profit
or loss except to the extent that it relates to items recognised directly in equity, in which case it
is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted
or substantively enacted at the reporting date, and any adjustment to tax payable in respect of
previous years.
Deferred tax is recognised using the balance sheet method, providing for temporary differences
between the carrying amounts of assets and liabilities for financial reporting purposes and the
amounts used for taxation purposes. Deferred tax is not recognised for the following temporary
differences: the initial recognition of assets or liabilities in a transaction that is not a business combination
and that affects neither accounting nor taxable profit, and differences relating to investments
in subsidiaries and jointly controlled entities to the extent that it is probable that they will not
reverse in the foreseeable future. In addition, deferred tax is not recognised for taxable temporary
differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates

94
2008
that are expected to be applied to the temporary differences when they reverse, based on the laws
that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities
are offset if there is a legally enforceable right to offset current tax liabilities and assets, and
they relate to income taxes levied by the same tax authority on the same taxable entity, or on different
tax entities, but they intend to settle current tax liabilities and assets on a net basis or their
tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be
available against which the temporary difference can be utilised. Deferred tax assets are reviewed
at each reporting date and are reduced to the extent that it is no longer probable that the related
tax benefit will be realised.
(r) Earnings per share (EPS)
The Group presents basic earnings per share (EPS) data for its ordinary shares, which is the same
as diluted EPS, because the Group has not issued any preference shares or convertible notes. Basic
EPS is calculated by dividing the profit or loss attributable to ordinary shareholders by the weighted
average number of ordinary shares outstanding during the period.
( s ) C o m p a r a t i v e i n f o r m a t i o n
Comparative information has been mainly harmonised with the presentation of information in the
current year. Where required, adjustment of comparative data was carried out in order to comply
with the presentation of information in the current year.
( t ) S e g m e n t r e p o r t i n g
A segment is a distinguishable component of the Group that is engaged either in providing related
products or services (business segment), or in providing products or services within a particular
economic environment (geographical segment), which is subject to risks and returns that are different
from those of other segments. Segment information is presented in respect of the Group’s
business and geographical segments. The Group’s primary format for segment reporting is based
on business segments. The business segments are determined based on the Group’s management
and internal reporting structure.
Inter-segment pricing is determined on an arm’s length basis.
Segment results, assets and liabilities include items directly attributable to a segment as well as
those that can be allocated on a reasonable basis. Unallocated items comprise mainly investments
(other than investment property) and related revenue, loans and borrowings and related expenses,
corporate assets (primarily the Company’s headquarters) and head office expenses, and income
tax assets and liabilities.
Segment capital expenditure is the total cost incurred during the period to acquire property, plant
and equipment, and intangible assets other than goodwill.
(u) New standards and interpretations not yet adopted
A number of new standards, amendments to standards and interpretations are not yet effective for
the year ended 31 December 2008, and have not been applied in preparing these consolidated financial
statements:
• IFRS 8 Operating Segments (effective as from 1 January 2009) introduces the
“management approach” to segment reporting. IFRS 8, which becomes mandatory
for the Group’s 2009 financial statements, will require the disclosure of
segment information based on the internal reports regularly reviewed by the
Group’s Chief Operating Decision Maker in order to assess each segment’s performance
and to allocate resources to them.
Currently the Group presents segment information in respect of its business and
geographical segments (see note 43 and 44).

95
• Revised IAS 23 Borrowing Costs (effective as from 1 January 2009) removes
the option to expense borrowing costs and requires that an entity capitalise
borrowing costs directly attributable to the acquisition, construction or production
of a qualifying asset as part of the cost of that asset.
The revised IAS 23 will become mandatory for the Group’s 2009 financial
statements and will constitute a change in accounting policy for the Group. In
accordance with the transitional provisions the Group will apply the revised IAS
23 to qualifying assets for which capitalisation of borrowing costs commences
on or after the effective date.
• Amendments to IFRS 2 Share-based Payment (effective as from 1 January
2009) The amendment clarifies the definition of vesting conditions and introduces
the concept of non-vesting conditions. Non-vesting conditions are to
be reflected in grant-date fair value and failure to meet non-vesting conditions
will generally result in treatment as a cancellation.
• Amendments to IFRS 2 are not relevant to the Group’s operations as the
Group does not have any share-based compensation plans.
• Amendments to IAS 1 Presentation of Financial Statements (effective as
from 1 January 2009) The amended standard requires information in financial
statements to be aggregated on the basis of shared characteristics and introduces
a statement of comprehensive income. Items of costs and expenses and
components of other comprehensive income (effectively combining the income
statement and all non-owner changes in equity in a single statement), or in two
separate statements (a separate income statement followed by a statement of
comprehensive income).
• The Group will prepare two separate statements in the consolidated financial
statements for 2009.
• Amendments to IAS 27 Consolidated and Separate Financial Statements
(effective as from 1 January 2009)
The amendments remove the definition of “cost method” currently set out in
IAS 27, and instead require all dividends from a subsidiary, jointly controlled entity
or associate to be recognised as income in the separate financial statements
of the investor when the right to receive the dividend is established.
• Amendments to IAS 27 are not relevant where these refer to the consolidated financial
statements of the Group.
• They will, however, have the impact on the individual financial statements as the
dividends will be recognised prior to the actual dividend payout.
• Amendments to IAS 32 Financial Instruments: Presentation, and IAS 1
Presentation of Financial Statements (effective as from 1 January 2009)
• The amendments introduce an exemption to the principle otherwise applied
in IAS 32 for the classification of instruments as equity; the amendments allow
certain putt-able instruments issued by an entity that would normally be classified
as liabilities to be classified as equity if, and only if, they meet certain conditions.
• The amendments are not relevant to the Group’s consolidated financial statements
as none of the Group companies issued any putt-able instruments in the
past.
• IFRIC 13 Customer Loyalty Programmes (effective as from 1 July 2008)
• It addresses the accounting by entities that participate in customer loyalty programmes
for their customers. It relates to customer loyalty programmes under
which the customer can redeem credits for awards such as free or discounted
goods or services.
IFRIC 13, which becomes mandatory for the Group’s 2009 financial statements,
is not expected to have any impact on the consolidated financial statements.

96
2008
4. Determination of fair value
A number of the Group’s accounting policies and disclosures require the determination of fair value,
for both financial and non-financial assets and liabilities. Fair values have been determined for
measurement and / or disclosure purposes based on the following methods. When applicable, further
information about the assumptions made in determining fair values is disclosed in the notes
specific to that asset or liability.
(i) Property, plant and equipment
The fair value of property, plant and equipment recognised as a result of a business combination is
based on market values. The market value of property is the estimated amount for which a property
could be exchanged on the date of valuation between a willing buyer and a willing seller in an
arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably,
prudently and without compulsion. The items of plant, equipment, fixtures and fittings are valued
at cost.
(ii) Intangible assets
The fair value of patents and trademarks recognised as a result of a business combination is based
on the estimated discounted future costs of licence fees whose payment is not required because of
the ownership of the patent and the trademark respectively. The fair value of other intangible assets
is estimated as the present value of future cash flows expected to be derived from the use and
eventual sale of the assets.
(iii) Investment property
An external, independent valuation company, having appropriate recognised professional qualifications
and recent experience in the location and category of property being valued, values the
Group’s investment property portfolio every five years. The fair values are based on market values,
being the estimated amount for which a property could be exchanged on the date of the valuation
between a willing buyer and a willing seller in an arm’s length transaction after proper marketing
wherein the parties had each acted knowledgeably, prudently and without compulsion.
In the absence of current prices in an active market, the valuations are prepared by considering the
aggregate of the estimated cash flows expected to be received from renting out the property. A
yield that reflects the specific risks inherent in the net cash flows then is applied to the net annual
cash flows to arrive at the property valuation.
Valuations reflect, when appropriate: the type of tenants actually in occupation or responsible for
meeting lease commitments or likely to be in occupation after letting vacant accommodation, and
the market’s general perception of their creditworthiness; the allocation of maintenance and insurance
responsibilities between the Group and the lessee; and the remaining economic life of the
property. When rent reviews or lease renewals are pending with anticipated reversionary increases,
it is assumed that all notices, and when appropriate counter-notices, have been served validly
and within the appropriate time.
(iv) Investments in equity and debt security
The fair value of financial assets at fair value through profit or loss, held-to-maturity investments
and available-for-sale financial assets is determined by reference to their quoted bid price at the reporting
date. The fair value of held-to-maturity investments is determined for disclosure purposes
only.
(v) Trade receivables
The fair value of trade receivables is estimated as the present value of future cash flows, discounted
at the market rate of interest at the reporting date.

97
(vi) Derivatives
The fair value of derivatives is estimated as the present value of future cash flows, taking into account
the market price of equivalent derivatives at the reporting date.
(vii) Non-derivative financial liabilities
Fair value, which is determined for disclosure purposes, is calculated based on the present value of
future principal and interest cash flows, discounted at the market rate of interest at the reporting
date. In respect of the liability component of convertible notes, the market rate of interest is determined
by reference to similar liabilities that do not have a conversion option. For finance leases the
market rate of interest is determined by reference to similar lease agreements.
5. Financial risk management
In respect of financial risk management, the internal financial policies comprising the bases for efficient
and systematic risk management were observed in 2008. The objectives of risk management
are:
• to achieve stability of operations and to reduce risk exposure to an acceptable
level,
• to increase the value of companies and the impact on their financial standing,
• to increase financial income and/or decrease financial expenses, and
• to nullify and/or decrease the effects of exceptionally damaging events.
In the Gorenje Group, the following key types of financial risks have been defined:
Financial risks
Credit risk
Currency risk
Interest rate risk
Liquidity risk
The exposure to each type of risk and the hedge measures to be applied are judged and implemented
on the basis of their effects on the cash flows. To hedge against financial risks in the course
of ordinary business activities, relevant hedging activities have been conducted in the area of operating,
investing and financing activities.
In 2008, in the light of the strained macroeconomic situation, more attention was paid to the credit
risk which includes all risks where the failure of a party (a buyer) to discharge contractual obligations
results in a decrease in economic benefits of the Company. The credit risk was managed by
application of the following sets of measures:
• Insurance of a major portion of operating receivables against credit risk with SID
– Prva kreditna zavarovalnica, d.d. (SID - First Credit Insurance Company Inc.,
Ljubljana) and other insurance companies;
• Additional collateralisation of riskier trade receivables by bank guarantees, and
other security instruments;
• Regular monitoring of operation and financial standing of new and existing business
partners, and limitation of exposure to certain business partners;
• Implementation of mutual and chain compensation with buyers;
• Systematic and active control of credit limits and collection of receivables.
With regard to the above stated hedging measures, the management of the Gorenje Group estimates
the credit risk exposure to be moderate.
With regard to the geographic diversification of the its operations, the Gorenje Group is strongly
exposed to the currency risk, which is the risk that the economic benefits of the Company may be
decreased due to changes in foreign exchange rates. When assessing currency risk exposure, both
cash flow exposure and balance sheet exposure have been considered. The currency risk mainly
results from business activities in the markets of Serbia, Great Britain, Czech Republic, Slovakia,
Poland, Hungary, Croatia, and the US dollar markets. A greater attention was paid to the natural

98
2008
hedging of currency risk and the adaptation of business operations to ensure long-term decrease
in currency fluctuation exposure by matching or netting sales and purchases. Additional short-term
hedging is carried out by currency future contracts and short-term borrowings in national currencies.
Irrespective of the implemented hedging measures against currency risk, the management of the
Gorenje Group estimates that, in the light of significant macroeconomic changes and fluctuations,
in particular of the East-European currencies, the currency risk exposure is high.
In the last few years, a great attention was also paid to interest rate risk, which is the risk that the
economic benefits of the Company may be decreased due to changes in interest rates in the market.
In 2008 the volume of hedging against interest rate risk was decreased over the previous year’s
figure, so that the share of fixed interest rates and derivatives hedging against interest rate risk was
equal to 37.6 percent of the loans portfolio of the Gorenje Group at the year end 2008. The management
of the Gorenje Group estimates that the interest rate risk exposure is high.
Liquidity risk is the risk that the Company will fail to meet commitments in stipulated period of time
due to the lack of available funds.
The financial liabilities of the Gorenje Group in the amount of EUR 278 million mature in 2009. For
this reason the Gorenje Group started, in the last quarter of 2008, to negotiate with the banks the
rescheduling of the existing financial liabilities and thus to decrease the risk of debt rescheduling.
The liquidity reserve at 31.12.2008 in the amount of EUR 76.6 million, consisting of unused revolving
lines of credit and cash in banks of the Gorenje Group, is used to ensure adequate short-term
control of cash flows and to decrease short-term liquidity risk.
Short-term liquidity risk of the Gorenje Group is estimated as increased due to efficient cash management,
adequate available lines of credit 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 finance from business partners,
both buyers and sellers.
Long-term liquidity risk of the Gorenje Group is estimated as moderate due to efficient operations,
effective cash management, sustainable ability to generate cash flows from operating activities,
and an adequate capital structure.
The management of the Gorenje Group estimates that the liquidity risk exposure of the Gorenje
Group is moderate.
Capital management
The Group’s policy is to maintain a strong capital base so as to maintain investor, creditor and market
confidence and to sustain future development of the Gorenje Group. The Group monitors the
return on capital, which the Group defines, as one of the strategic ratios, as net profit for the period
attributable to equity holders of the Group divided by average shareholders’ equity, excluding
minority interests. The Group seeks to maintain a balance between the higher returns that might
be possible with higher levels of borrowings and the advantages and security afforded by a sound
capital position.
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.
Pursuant to the resolution of the Shareholders’ Meeting, an own share fund has been formed by the
controlling company of the Gorenje Group amounting up to 10 % of the share capital. At 31 December
2008, the Company recorded 121,311 own shares, which is 0.8647 % of share capital.

99
At the 10th Shareholders’ Meeting of Gorenje, d.d., on 12 December 2006, the Management Board
of Gorenje, d.d., was authorised to increase, subject to the prior consent of the Supervisory Board
and not later than five years after the entry of the amendment of the Articles of Incorporation,
share capital by up to 15 percent of the amount of share capital entered in the register on the date
of adoption of the respective resolution, or by not more than SIT 1,830,000,000 (approved capital).
Capital should be increased by issuing up to 1,830,000 new ordinary, freely transferable, registered
no par value shares against cash contributions.
The procedure of the increase in share capital, the increase in the number of shares, and the amendment
of the Articles of Incorporation was completed by the Order of the District Court in Celje
no. Srg 2007/02253 of 7 November 2007. The respective Order relates to the entry of a change
in share capital from EUR 50,909,697.88 to EUR 58,546,152.56, a change in the number of shares
from 12,200,000 to 14,030,000, and the amendment of the Articles of Incorporation referring to
the above mentioned changes.
The Gorenje Group has no special goals regarding employee shareowning and no share option programme.
There were no changes in the Group’s approach to capital management in 2008. 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 not resolutions adopted on conditionally increased capital.
6. Segment reporting
Business segments
The Group comprises the following main business segments:
(i) Household appliances business segment
Household appliances business segment: the manufacture and sale of household appliances of own
manufacture, the sale of household appliance of other producers (supplementary programme), the
sale of products from the complementary programme outside of the three main programmes of
large household appliances, the manufacture and sale of heating appliances of own manufacture,
tool manufacture, machine construction, and manufacture of mechanical components.
(ii) Other business segments
Home interior: the manufacture and sale of kitchen furniture, bathroom furniture, sanitary fixtures
and fittings, and ceramic tiles.
Ecology, Energy and Services: Environmental protection and energy, trade, engineering, representation,
catering, tourism, and real estate management.
Geographical segments
In presenting information on the basis of geographical segments, segment revenue is based on the
geographical location of customers. Segment assets are based on the geographical location of the
assets. The Group comprises the following main geographical segments:
Skupino sestavljajo naslednji ključni območni odseki:
European Union: Austria, Germany, Italy, France, Denmark, Sweden, Belgium, Finland, Great Britain,
Greece, Latvia, Lithuania, Estonia, Slovenia, Czech Republic, Hungary, Poland, Bulgaria, Romania.

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2008
East Europe: Ukraine, Russia, Macedonia, Croatia, Serbia, Montenegro, Albania, Bosnia and Herzegovina,
Belarus, Kosovo, Moldova.
Other: other countries.
7. Cash flow statement
The cash flow statement has been prepared under the indirect method on the basis of the items
in the balance sheet at 31 December 2008, the balance sheet at 31 December 2007, the income
statement for the year ended 31 December 2008, and the additional information required for the
adjustment of inflows and outflows.
8. Composition of the Gorenje Group
In accordance with International Financial Reporting Standards (IFRSs), the consolidated financial
statements of the Gorenje Group comprise the financial statements of the holding company
Gorenje, d.d., the financial statements of 66 subsidiaries, and the financial statements of 11 jointly
controlled companies:
Companies operating in Slovenia Share in equity in %
Gorenje I.P.C., d.o.o., Velenje 100.00
Gorenje Tiki, d.o.o., Ljubljana 99.982
Gorenje GTI, d.o.o., Velenje 100.00
Gorenje Notranja oprema, d.o.o., Velenje 99.98
Gorenje Gostinstvo, d.o.o., Velenje 100.00
LINEA SP, d.o.o., Velenje 100.00
ENERGYGOR, d.o.o., Velenje 100.00
KEMIS, d.o.o., Radomlje 100.00
Gorenje Orodjarna, d.o.o., Velenje 100.00
ZEOS, d.o.o., Ljubljana 51.00
ISTRABENZ GORENJE, d.o.o., Nova Gorica 49.344
GEN-I, d.o.o., Krško 24.67
Istrabenz investicijski inženiring, d.o.o., Nova Gorica 49.344
SUROVINA, d.d., Maribor 51.00
Indop, d.o.o., Šoštanj 100.00
ERICo, d.o.o., Velenje 51.00
Istrabenz Gorenje inženiring, d.o.o., Ljubljana 49.344
Gorenje Projekt, d.o.o., Ljubljana 100.00
Gorenje design studio, d.o.o., Velenje 52.00
PUBLICUS, d.o.o., Ljubljana 51.00
IG AP, d.o.o., Kisovec 49.344

101
Companies operating abroad Share in equity in %
Gorenje Beteiligungsgesellschaft m.b.H., Austria 100.00
Gorenje Austria Handelsgesellchaft m.b.H., Austria 100.00
Gorenje Vertriebsgesellschaft m.b.H., Germany 100.00
Gorenje Körting Italia S.r.l., Italy 100.00
Gorenje France S.A.S., France 100.00
Gorenje BELUX S.a.r.l., Belgium 100.00
Gorenje Espana, S.L., Spain 100.00
Gorenje UK Ltd., Great Britain 100.00
Gorenje Skandinavien A/S, Denmark 100.00
Gorenje AB, Sweden 100.00
Gorenje OY, Finland 100.00
Gorenje AS, Norway 100.00
OÜ Gorenje, Estonia 100.00
SIA Gorenje, Latvia 100.00
Gorenje spol. s r.o., Czech Republic 100.00
Gorenje real spol. s r.o., Czech Republic 100.00
Gorenje Slovakia s.r.o., Slovak Republic 100.00
Gorenje Budapest Kft., Hungary 100.00
Gorenje Polska Sp. z o.o., Poland 100.00
Gorenje Bulgaria EOOD, Bulgaria 100.00
Gorenje Zagreb, d.o.o., Croatia 100.00
Gorenje Skopje, d.o.o., Macedonia 100.00
Gorenje Commerce, d.o.o., Bosnia and Herzegovina 100.00
Gorenje, d.o.o., Serbia 100.00
Gorenje Podgorica , d.o.o., Montenegro 99.972
Gorenje Romania S.R.L., Romania 100.00
Gorenje aparati za domaćinstvo, d.o.o., Serbia 100.00
Mora Moravia s r.o., Czech Republic 100.00
Gorenje Küchen GmbH, Austria 99.98
Gorenje - kuchyně spol. s r.o., Czech Republic 99.98
Kemis-Termoclean, d.o.o., Croatia 100.00
Kemis - BH, d.o.o., Bosnia and Herzegovina 100.00
Gorenje Invest, d.o.o., Serbia 100.00
Gorenje Gulf FZE, United Arab Emirates 100.00
Gorenje Tiki, d.o.o., Serbia 99.982
GEN-I Zagreb, d.o.o., Croatia 24.67
Intrade energija, d.o.o., Bosnia and Herzegovina 25.17
Vitales, d.o.o., Nova Bila, Bosnia and Herzegovina 49.344
Gorenje Istanbul Ltd., Turkey 100.00
Sirovina, a.d., Serbia 51.00
Gorenje TOV, Ukraine 100.00
Vitales, d.o.o., Bihać, Bosnia and Herzegovina 24.67
GEN-I, d.o.o, Serbia 24.67
ST Bana Nekretnine, d.o.o., Serbia 100.00
GEN-I Budapest, Kft., Hungary 24.67
Kemis – SRS, d.o.o., Bosnia and Herzegovina 100.00
ATAG Europe BV, The Netherlands 100.00
ATAG Nederland BV, The Netherlands 100.00
ATAG België NV, Belgium 100.00
ATAG Financiele Diensten BV, The Netherlands 100.00
ATAG Financial Services BV, The Netherlands 100.00
Intell Properties BV, The Netherlands 100.00
ATAG Special Product BV, The Netherlands 100.00
Gorenje Holding B.V., The Netherlands 100.00
Gorenje Kazakhstan, TOO, Kazakhstan 100.00
Gorenje kuhinje, d.o.o., Ukraine 69.986

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2008
9. Minority interest
Minority interests at 31 December 2008 are:
2008 2007
Share in equity
in %
Minority
interest
in TEUR
Share in net
profit or loss in
TEUR
Share in equity
in %
Minority
interest
in TEUR
Share in net
profit or loss in
TEUR
Gorenje Tiki d.o.o., Ljubljana 0.018 3 0 0.018 3 0
Gorenje Tiki, d.o.o., Serbia 0.018 2 0 0.018 2 0
Gorenje Podgorica, d.o.o., Montenegro 0.028 1 0 0.028 1 0
Gorenje Notranja oprema, d.o.o., Velenje 0.02 4 0 0.4 88 4
Gorenje Küchen GmbH, Austria 0.02 0 0 0.4 -6 -4
Gorenje kuchyne spol. s r.o., Czech Republic 0.02 0 0 0.4 8 1
ZEOS, d.o.o., Ljubljana 49.0 327 14 49.0 313 123
SUROVINA, d.d., Maribor 49.0 11,711 1,539 49.0 10,713 1,100
RVT, d.o.o., Maribor 0 0 0 70.01 -746 -233
Sirovina, a.d., Serbia 49.0 41 1 55.88 49 -63
ERICo, d.o.o., Velenje 49.0 510 74 49.0 433 64
Gorenje Kuhinje, d.o.o., Ukraine 30.014 244 -111
PUBLICUS, d.o.o., Ljubljana 49.0 153 -214
Gorenje design studio, d.o.o., Velenje 48.0 247 6
Total 13,243 1,309 10,858 992
The transfer of ownership between the companies of the Gorenje Group did not have any impact
on the consolidated financial statements of the Gorenje Group, for the intra-group transactions
were eliminated from consolidation.
10. Acquisition of companies
The following companies were acquired in 2008: PUBLICUS, d.o.o., Ljubljana on 25 March 2008,
Istrabenz Gorenje Avtomatizacija procesov, d.o.o., Kisovec on 22 April 2008, Radolad, Kiew in May
2008, and Atag Europe BV end of June 2008. The fair value of net assets of the acquired companies
was estimated. The effect of the acquisition on assets and liabilities of the Group is shown
below.
The allocation of differences found between the book value and the fair value of assets and liabilities
of the acquired company to its separate identifiable assets is shown below:

103
ATAG Europe BV
in TEUR
Carrying amount
prior to acquisition
Adjustment to fair
value
Recognised value
after the acquisition
Intangible assets 2,808 2,808
Property, plant and equipment 10,756 10,756
Trademark 61,964 61,964
Deffered tax assets 378 378
Inventories 18,423 18,423
Operating receivables 16,047 16,047
Cash 116 116
Financial liabilities -8,344 -8,344
Operating liabilities -24,350 -24,350
Provisions -6,824 -6,824
Deffered tax liabilities -2,066 -2,066
Net difference (assets – liabilities) 6,944 61,964 68,908
Acquired share (100 %) 68,908
Goodwill 62,130
Purchase price 131,038
Paid with shares 39,409
Cash -116
Net outflow 91,513
The trademarks Atag, Etna and Pelgrim were valued using the royalty relief method and the discounted
cash flow method. The royalty relief method is premised on the royalty that a company
would have to pay for the use of the trademark if it had to license it from a third party. The hypothetical
royalty rate is estimated for each year of the remaining useful life and discounted to present
value. The estimate is based on the projection of operations for 20 years. The discount rate of 14.79
% was applied.
Recognised trademark
Applied growth rates
ATAG 39,412 1.5 %
ETNA 7,960 1.0 %
PELGRIM 14,592 0.5 %
Total 61,964
The difference which could not be assigned to individual types of acquired assets and liabilities includes
goodwill recognised upon acquisition and amounts to TEUR 62,130. Through the acquisition
of the ATAG company, Gorenje acquires a significant market share in Benelux and, at the same
time, rounds up its set of trademarks with a top price trademark, which will help the Gorenje Group
to significantly consolidate its position in Europe. In this way Gorenje realizes its strategic plan and
the role of an active connecting link in the line of household appliances. There are numerous expected
synergies between the two companies in the area of marketing, purchases, product management,
and production.
P U B L I C U S , d . o . o . , L j u b l j a n a
in TEUR 2008
Property, plant and equipment 1,173
Operating receivables 860
Cash 86
Provisions -118
Financial liabilities -811
Operating liabilities -439
Net difference (assets – liabilities) 751
Acquired share (51 %) 383
Goodwill 1,617
Purchase price 2,000
Cash -86
Net outflow 1,914

104
2008
The calculation of goodwill is provisional and is based on carrying amount of net assets.
PUBLICUS, d.o.o., is the holder of a municipal waste management concession for the municipalities
Komenda, Kamnik, Postojna and Pivka. Through the acquisition of the company, the Gorenje Group
desires to complete the circle of activities in the area of waste management. The Gorenje Group
manages hazardous waste through its company Kemis and secondary raw materials through its
company Surovina. PUBLICUS is an important component part helping to realize the idea of global
service for industry, in which all three types of waste are included. PUBLICUS is an important part
of activities associated with ecology also in respect of mass flow of waste. This opens new possibilities
under the new law governing waste disposal, such as alternative fuel production from highcaloric
waste fractions.
IG AP, d.o.o., Kisovec
in TEUR 2008
Property, plant and equipment 223
Inventories 10
Investments 57
Operating receivables 761
Cash 44
Provisions -6
Financial liabilities -551
Operating liabilities -177
Net difference (assets – liabilities) 361
Acquired share (100 %) 361
Goodwill 705
Purchase price 1,066
Cash -44
Net outflow 1,022
Prior to the acquisition of IG AP, d.o.o., all disputable assets (disputable receivables) had been excluded
from its balance sheet. The estimated fair value of acquired assets and liabilities does not essentially
deviate from the book value. Consequently the goodwill, which was established upon the
acquisition, has not been allocated to other assets.
The strategy of Istrabenz Gorenje comprises three policies: production, trading and sale of electrical
power, production and sale of wood biomass, and engineering in the process and power industry.
The latter has developed with the help of certain staff which, however, has not sufficed for
a breakthrough in this area where not only references but also experiences and concentrated knowhow
are required. Through the acquisition of Avtomatizacija, the engineering area within the IG
Group has filled up this gap and set the base for a quicker development of the respective area.
G o r e n j e K u h i n j e , d . o . o . , K i e w
in TEUR 2008
Property, plant and equipment 688
Inventories 453
Operating receivables 242
Cash 7
Financial liabilities -140
Operating liabilities -397
Net difference (assets – liabilities) 853
Acquired share (69.986 %) 597
Negative goodwill 28
Purchase price 569
Cash -7
Net outflows 562

105
Prior to the acquisition of Gorenje Kuhinje, d.o.o., all disputable assets (disputable receivables, slow
selling inventories) had been excluded from its balance sheet. The estimated fair value of acquired
assets and liabilities does not essentially deviate from the book value. The negative goodwill, which
was established upon the acquisition, was recognised in profit or loss.
The Radolad company had been owned by Ukrainian shareholders until 31 March 2008. The company
had manufactured kitchens from the narrower Gorenje Kitchen Program and sold them, together
with the Gorenje kitchens from Slovenia, in the Ukrainian market. Gorenje Notranja oprema,
d.o.o. had concluded a contract with the company on business cooperation. In the contract, the
possibility and the terms of possible capital expenditures had been defined. Upon a partial implementation
of the project of the establishment of a franchising network of Gorenje Kitchen showrooms
in all bigger Ukrainian cities and the achieved minimum monthly volume of sales, the conditions
for a capital expenditure had thus been fulfilled. This is the realization of a long-term kitchen
marketing strategy and the competitive advantages of a local manufacturer in the respective
Ukrainian market.
11. Disposal of companies
The disposal of Gores, d.o.o., Adria Nekretnine, d.o.o., and Gorenje Imobilia, d.o.o., had the following
effect on the Gorenje Group’s assets and liabilities:
Gores, d.o.o., Velenje
in TEUR 2008
Property, plant and equipment -8
Investment property -2,582
Investments -2,668
Operating receivables -22
Cash -148
Operating liabilities 5,308
Net difference (assets – liabilities) -120
Contractual selling price -2,720
Payments received in 2008 -789
Cash 148
Net inflows -641
Gorenje Adria Nekretnine, d.o.o., Croatia
in TEUR 2008
Property, plant and equipment -9
Investment property -313
Investments -320
Operating receivables -261
Cash -324
Operating liabilities 497
Net difference (assets – liabilities) -730
Contractual selling price -705
Cash 324
Net inflows -381

106
2008
Gorenje Imobilia, d.o.o., Serbia
in TEUR 2008
Property, plant and equipment -150
Investment property -1,986
Investments -130
Operating receivables -68
Cash -13
Financial liabilities 320
Operating liabilities 7
Net difference (assets – liabilities) -2,020
Contractual selling price -1,955
Cash 13
Net inflows -1,942
12. Joint ventures
The Group holds a proportionate 49.344-percent share in Istrabenz Gorenje energetski sistemi,
d.o.o., Nova Gorica and its subsidiaries. The Group and the holding company Istrabenz, d.d., hold
an equal share in the company.
The proportionate shares of assets, liabilities, revenue and expenses are included in the consolidated
financial statements.
Istrabenz Gorenje, d.o.o., Nova Gorica
in TEUR 2008 2007
Non-current assets 8,817 4,549
Current assets 3,939 4,302
Non-current liabilities -20 -36
Current liabilities -6,739 -3,844
Revenue 8,097 4,938
Expenses -7,015 -4,196
Income tax -6 -43
Net profit or loss for the period 1,076 699
GEN-I, d.o.o., Krško
in TEUR 2008 2007
Non-current assets 440 215
Current assets 18,638 9,252
Non-current liabilities -11 -9
Current liabilities -15,751 -6,746
Revenue 79,295 37,387
Expenses -77,622 -36,458
Income tax -386 -214
Net profit or loss for the period 1,287 715

107
Intrade energija, d.o.o., Sarajevo
in TEUR 2008 2007
Non-current assets 2,514 2,538
Current assets 55 27
Non-current liabilities -2,470 -2,526
Current liabilities -738 -489
Revenue 235 168
Expenses -429 -413
Income tax 0 0
Net profit or loss for the period -194 -245
Vitales, d.o.o., Nova Bila
in TEUR 2008 2007
Non-current assets 5,307 4,328
Current assets 404 913
Non-current liabilities -3,098 -2,789
Current liabilities -2,204 -1,629
Revenue 1,036 243
Expenses -1,440 -399
Income tax 0 0
Net profit or loss for the period -404 -156
Istrabenz investicijski inženiring, d.o.o., Nova Gorica
in TEUR 2008 2007
Non-current assets 6,746 5,356
Current assets 224 473
Non-current liabilities -5,560 -3,867
Current liabilities -625 -1,219
Revenue 533 133
Expenses -467 -98
Income tax -15 -8
Net profit or loss for the period 51 27
Istrabenz Gorenje inženiring, d.o.o., Ljubljana
in TEUR 2008 2007
Non-current assets 181 53
Current assets 184 632
Non-current liabilities -27 0
Current liabilities -159 -380
Revenue 584 340
Expenses -1,127 -333
Income tax 110 -2
Net profit or loss for the period -433 5

108
2008
GEN–I Zagreb, d.o.o.
in TEUR 2008 2007
Non-current assets 0 0
Current assets 2,223 1,165
Non-current liabilities 0 0
Current liabilities -2,193 -1,156
Revenue 4,610 3,086
Expenses -4,582 -3,074
Income tax -6 0
Net profit or loss for the period 22 12
GEN–I, d.o.o., Belgrade
in TEUR 2008 2007
Non-current assets 0 0
Current assets 6,207 1,949
Non-current liabilities 0 0
Current liabilities -5,161 -1,730
Revenue 20,118 6,193
Expenses -19,102 -5,971
Income tax -100 0
Net profit or loss for the period 916 222
Vitales, d.o.o., Bihać
in TEUR 2008 2007
Non-current assets 1,360 662
Current assets 84 113
Non-current liabilities -1,210 -581
Current liabilities -75 -39
Revenue 139 0
Expenses -133 -4
Income tax 0 0
Net profit or loss for the period 6 -4
The jointly controlled company stated below was founded in 2008 by GEN-I, d.o.o., Krško.
G E N - I B u d a p e s t , K f t .
in TEUR 2008 2007
Non-current assets 0 0
Current assets 3,072 0
Non-current liabilities 0 0
Current liabilities -2,752 0
Revenue 11,002 0
Expenses -10,632 0
Income tax -73 0
Net profit or loss for the period 297 0

109
Note 13 – Revenue
1,330,753 TEUR
in TEUR 2008 2007
Revenue from the sale of products and merchandise 1,259,264 1,241,084
Revenue from the sale of services 71,489 52,354
Total 1,330,753 1,293,438
Note 14 – Other operating income
26,341 TEUR
in TEUR 2008 2007
Income from subsidies, grants and compensations 1,130 1,572
Rental income 930 759
Reversal of long-term provisions 4,452 2,646
Deferred income from government grants 2,951 2,568
Gain on sale of property, plant and equipment 1,807 1,983
Revaluation of investment property to fair value 2,566 0
Negative goodwill 28 128
Other operating income 12,477 15,709
Total 26,341 25,365
Negative goodwill recognised directly in the 2008 income statement in the amount of TEUR 28 resulted
from the acquisition of the majority share in Gorenje Kuhinje, d.o.o.
Other operating income includes, as its major item, income from compensations in damages, income
from the reversal of allowances for receivables, income from the implementation of the Directive
on Waste Electrical and Electronic Equipment, and other operating income.
Rental income
in TEUR 2008 2007
Future minimum lease payments – up to 1 year 930 759
Future minimum lease payments – from 2 to 5 years 2,286 3,053
Total 3,216 3,812
Note 15 – Cost of goods, materials and services
1,027,908 TEUR
in TEUR 2008 2007
Cost of merchandise sold 289,877 249,106
Cost of materials 531,752 562,073
Cost of services 206,279 193,585
Total 1,027,908 1,004,764
The cost of services includes cost of creation of provisions for warranties in the amount of TEUR
22,485 (in 2007: TEUR 18,925).
Note 16 – Employee benefits expense
226,487 TEUR
in TEUR 2008 2007
Wages and salaries 161,519 145,350
Social security contributions 36,232 34,233
Other employee benefits expense 28,736 28,970
Total 226,487 208,553
Other employee benefits expense includes costs of creation of provisions for retirement benefits in
the amount of TEUR 1,408 (in 2007: TEUR 753).
A portion of employee benefits expense in the amount of TEUR 3,170 was used to create deferred
income from government grants in Gorenje I.P.C., d.o.o., which has the status of a company employing
disabled persons.

110
2008
Other employee benefits expense includes vacation bonuses, meal allowances, commuting allowances,
retirement benefits and jubilee premiums, in compliance with the national labour legislation
and the company’s internal regulations.
Number of employees by division At 31 December Average
2008 2007 2008 2007
Home Appliances Division 9,306 9,381 9,384 9,465
Other divisions 2,017 2,029 2,048 1,991
Total 11,323 11,410 11,432 11,456
Note 17 – Amortisation and depreciation expense
57,121 TEUR
in TEUR 2008 2007
Amortisation of intangible assets 5,221 3,423
Depreciation of property, plant and equipment 51,900 49,788
Total 57,121 53,211
Note 18 – Other operating expenses
19,047 TEUR
in TEUR 2008 2007
Write-down of inventories to net realisable value 1,727 2,767
Impairment, disposal of assets 565 1,030
Other taxes and charges 3,687 2,589
Other expenses 13,068 11,413
Total 19,047 17,799
Other taxes and charges include charges for the use of building plot, water charge, environmental
taxes, membership fees in mandatory associations, and other mandatory taxes and charges.
Other expenses include expenditure on environmental protection, of which the majority under the
Directive on Waste Electrical and Electronic Equipment, scholarships expense, and compensation
in damages.
Note 19 – Net finance expense
Finance income
21,420 TEUR
19,603 TEUR
in TEUR 2008 2007
Dividend income from available-for-sale investments 1,048 1,693
Interest income 3,885 3,831
Income from interest rate swap transactions 2,048 741
Change in fair value of interest rate swap 327 124
Gain on disposal of companies 3,382 478
Gain on disposal of available-for-sale investments 4,066 7,390
Income from forward exchange transactions 1,285 397
Change in fair value of forward exchange transactions 2,821 0
Other finance income 741 3,801
Total 19,603 18,455
Finance expense
41,023 TEUR
in TEUR 2008 2007
Interest expense 25,296 19,665
Expense for net foreign exchange differences 4,486 654
Expense for forward exchange transactions 1,267 1,523
Change in fair value of forward exchange transactions 0 1,104
Impairment loss on available-for-sale investments 5,012 95
Other finance 4,962 5,668
Total 41,023 28,709

111
Impairment loss on available-for-sale investments recorded under finance expense amounts to
TEUR 5,012.
Note 20 – Income tax expense
5,292 TEUR
Income tax expense is recorded by taking into account current tax liabilities, deferred tax assets,
and deferred tax liabilities.
in TEUR 2008 2007
Current tax expense 5,752 5,290
Deferred tax expense -460 446
Total 5,292 5,736
Effective income tax rate
in TEUR 2008 2007
Profit excluding income tax 15,473 29,400
Income tax using the domestic tax rate 22.0 % 3,404 23.0 % 6,762
Effect of tax rates in foreign jurisdictions 3.1 % 472 2.4 % 715
Non-deductible expenses 40.2 % 6,219 8.0 % 2,340
Tax exempt income -3.6 % -555 -5.2 % -1,517
Tax incentives -27.5 % -4,248 -8.5 % -2,492
Other differences -0.2 % -72
Income tax expense 34.2 % 5,292 19.5 % 5,736
Note 21 – Intangible assets
162,986 TEUR
in TEUR 2008 2007
Long-term deferred development costs 14,054 12,278
Long-term concessions, patents, licenses, trademarks
and similar rights
17,340 7,778
Trademark Atag 61,964
Goodwill 69,358 4,597
Intangible assets under construction 270 441
Total 162,986 25,094
An increase in the value of intangible assets includes, in a significant portion thereof, deferred costs
of development of the new generation of appliances in Gorenje, d.d., and costs of development in
Atag Europe BV.
An increase in the value of intangible assets resulting from the acquisition or purchase of shares
refers to goodwill in the in the amount of TEUR 62,130 and fair value of the trademark Atag in the
amount of TEUR 61,964 established upon the acquisition of Atag Europe BV, goodwill established
upon the purchase of the majority share in PUBLICUS, d.o.o., in the amount of TEUR 1,617, goodwill
established upon the purchase of a proportionate share in IG AP, d.o.o., in the amount of TEUR 705,
and inclusion of intangible assets of the acquired companies in the amount of TEUR 10,756.
Goodwill in the amount of TEUR 2,875 was recorded in 2005 upon the acquisition of Mora Moravia,
s r. o. in the Czech Republic and Gorenje Invest, d.o.o., in Serbia. Goodwill in the amount of TEUR
2,030, which arises from the purchase of the majority share in Surovina, d.d., was adjusted by the
amount of TEUR 308 due to the adjustment of the temporary initial accounting of business combination
in line with the fair value determination.
Impairment testing of goodwill and trademarks
Impairment testing of goodwill and trademarks ATAG, ETNA and PELGRIM arising from the acquisition
of Atag Europe BV was carried out. The calculations are based on cash flow projections for
Atag, which have been prepared on the basis of the accepted business plans for the following year

112
2008
and projected on the basis of adequate assumptions. The main underlying assumptions used to calculate
the value are: the growth rate 2 % of cash flow and the discount rate of 11.09 %.
The recoverable value of the cash-generating unit was determined to be higher than its carrying
amount, including that of goodwill and trademarks ATAG, ETNA and PELGRIM. Therefore there
was no need for impairment.
Impairment testing of goodwill arising from the acquisition of PUBLICUS, d.o.o., was carried out.
The calculations are based on cash flow projections for PUBLICUS, d.o.o., which have been prepared
on the basis of the accepted business plans for the following year and projected on the basis
of adequate assumptions. The main underlying assumptions used to calculate the value are: the
growth rate of 2 % and the discount rate of 7 %.
The recoverable value of the cash-generating unit was determined to be higher than its carrying
amount, including that of goodwill. Therefore there was need for impairment of goodwill.
Impairment testing of goodwill arising from the acquisition of IG AP, d.o.o., was carried out. The calculations
are based on cash flow projections for IG AP, d.o.o., which have been prepared on the basis
of the accepted business plans for the following year and projected on the basis of adequate assumptions.
The main underlying assumptions used to calculate the value are: the growth rate of 2
% and the discount rate of 7 %.
The recoverable value of the cash-generating unit was determined to be higher than its carrying
amount, including that of goodwill. Therefore there was need for impairment of goodwill.
Impairment testing of goodwill arising from the acquisition of Mora Moravia, s r.o., was carried out.
The calculations are based on cash flow projections for Mora Moravia, s r.o., which have been prepared
on the basis of the accepted business plans for the following year and projected on the basis
of adequate assumptions. The main underlying assumptions used to calculate the value are: the
growth rate of 2 % and the discount rate of 7 %.
The recoverable value of the cash-generating unit was determined to be higher than its carrying
amount, including that of goodwill. Therefore there was need for impairment of goodwill.
Impairment testing of goodwill arising from the acquisition of Invest, d.o.o., was carried out. The
calculations are based on cash flow projections for Invest, d.o.o., which have been prepared on the
basis of the accepted business plans for the following year and projected on the basis of adequate
assumptions. The main underlying assumptions used to calculate the value are: the growth rate of
2 % and the discount rate of 7 %.
The recoverable value of the cash-generating unit was determined to be higher than its carrying
amount, including that of goodwill. Therefore there was need for impairment of goodwill.
Impairment testing of goodwill arising from the acquisition of Surovina, d.d., was carried out. The
calculations are based on cash flow projections for Surovina, d.d., which have been prepared on the
basis of the accepted business plans for the following year and projected on the basis of adequate
assumptions. The main underlying assumptions used to calculate the value are: the growth rate of
2 % and the discount rate of 7 %.
The recoverable value of the cash-generating unit was determined to be higher than its carrying
amount, including that of goodwill. Therefore there was need for impairment of goodwill.

113
in TEUR
Movement of intangible assets in 2008
Long-term
deferred
development
costs
Concessions,
patents,
licenses,
trademarks
and similar
rights
Goodwill
Intangible
assets under
construction
Cost 1 January 2008 20,045 22,358 4,597 441 47,441
Acquisition 1,205 967 3,346 5,518
Acquisition through business
combinations
2,138 8,618 64,453 75,209
Trademarks 61,964 61,964
Recalculation of goodwill for
Surovina, d.d. based on incomplete
308 308
initial accounting in 2007
Disposals, write-downs -7 -1,028 -23 -1,058
Other transfers 1,665 1,983 -3,493 155
Exchange differences -11 -148 -1 -160
Cost 31 December 2008 25,035 94,714 69,358 270 189,377
Accumulated amortisation
1 January 2008
7,767 14,580 22,347
Disposal of Group companies
Disposals, writedowns -1,007 -1,007
Amortisation expense 2,750 2,471 5,221
Other transfers 480 -565 -85
Exchange differences -16 -69 -85
Accumulated amortisation
31 December 2008
10,981 15,410 0 0 26,391
Carrying amount 1 January 2008 12,278 7,778 4,597 441 25,094
Carrying amount
31 December 2008
14,054 79,304 69,358 270 162,986
Total

114
2008
Movement of intangible assets in 2007
in TEUR
Long-term
deferred
development
costs
Concessions,
patents,
licenses,
trademarks
and similar
rights
Goodwill
Intangible
assets under
construction
Cost 1 January 2007 18,560 22,491 2,875 777 44,703
Acquisition 60 558 4,060 4,678
Acquisition through business
combinations
224 120 1,722 2,066
Disposal of Group companies -114 -114
Disposals, writedowns -3 -566 -569
Transfer to PPE 1,168 -211 -4,396 -3,439
Exchange differences 36 80 116
Cost 31 December 2007 20,045 22,358 4,597 441 47,441
Accumulated amortisation
1 January 2007
6,184 15,686 21,870
Disposal of Group companies -76 -76
Disposals, writedowns -564 -564
Amortisation expense 1,554 1,869 3,423
Transfer to PPE -2,466 -2,466
Exchange differences 29 131 160
Accumulated amortisation
31 December 2007
7,767 14,580 22,347
Carrying amount 1 January 2007 12,376 6,805 2,875 777 22,833
Carrying amount 31 December 2007 12,278 7,778 4,597 441 25,094
Total
Note 22 – Property, plant and equipment
412,953 TEUR
in TEUR 2008 2007
Land 57,270 45,168
Buildings 162,982 158,245
Manufacturing and other equipment 164,546 163,202
Property, plant and equipment under construction 28,155 18,176
Total 412,953 384,791

115
Movement of property, plant and equipment in 2008
in TEUR Land Buildings
Manufacturing
plant and
equipment
PPE
under
construction
Cost 1 January 2008 45,168 300,159 531,263 18,176 894,766
Acquisition 1,577 6,128 7,356 55,607 70,668
Acquisition through business
combinations
287 706 2,966 245 4,204
Disposal of Group companies -223 -64 -287
Disposals, writedowns -1,067 -8,358 -14,401 -756 -24,582
Revaluation 9,684 9,684
Transfer to investment property -114 -114
Transfer from investment
property
3,295 3,295
Other transfers 1,851 8,312 33,763 -44,881 -955
Exchange differences -230 -1,131 -1,272 -236 -2,869
Cost 31 December 2008 57,270 308,774 559,611 28,155 953,810
Accumulated depreciation
1 January 2008
0 141,914 368,061 0 509,975
Additional investments -3 -59 -62
Disposal of Group companies -14 -24 -38
Disposals, writedowns -5,547 -13,725 -19,272
Depreciation expense 9,738 42,162 51,900
Transfer to investment property
Transfer from investment
property
140 140
Other transfers -71 -423 -494
Exchange differences -365 -927 -1,292
Accumulated depreciation
31 December 2008
0 145,792 395,065 0 540,857
Carrying amount 1 January 2008 45,168 158,245 163,202 18,176 384,791
Carrying amount
31 December 2008
57,270 162,982 164,546 28,155 412,953
Total
An increase in property, plant and equipment arising from the inclusion of new companies in the
amount of TEUR 4,204 refers to the inclusion of the companies Atag Europe BV, PUBLICUS, d.o.o., IG
AP, d.o.o., and Gorenje Kuhinje, d.o.o., in consolidated financial statements.
The transfers include the transfers from property to investments property, the transfers from intangible
assets to property, plant and equipment, and the transfers between individual items.
The disposal of property, plant and equipment includes the sale of non-operating assets.
The Group’s land was re-valued in 2008. The valuation was performed on the basis of its fair market
value determined by an independent certified appraiser of real estate. The effect of revaluation
in 2008 amounted to TEUR 9,684. The conditions for impairment of assets were not identified in
2008.
As at 31 December 2008, financial liabilities were not secured by mortgage on property.

116
2008
Movement of property, plant and equipment in 2007
in TEUR Land Buildings
Manufacturing
plant and
equipment
PPE
under
construction
Cost 1 January 2007 30,510 287,130 498,261 15,916 831,817
Acquisition 44 4,745 10,472 50,771 66,032
Acquisition through business
combinations
3,565 6,245 9,569 1,217 20,596
Disposal of Group companies -1,185 -2,273 -1,792 -9 -5,259
Disposals, writedowns -915 -3,610 -16,061 -2,992 -23,578
Revaluation 10,797 10,797
Transfer to investment property -133 -5,996 1,297 -4,832
Other transfers 2,433 13,927 29,393 -46,611 -858
Exchange differences 52 -9 124 -116 51
Cost 31 December 2007 45,168 300,159 531,263 18,176 894,766
Accumulated depreciation
1 January 2007
134,684 344,497 479,181
Disposal of Group companies -1,658 -1,574 -3,232
Disposals, writedowns -915 -13,253 -14,168
Depreciation expense 9,271 40,517 49,788
Transfer to investment property -358 -358
Other transfers 785 -2,615 -1,830
Exchange differences 105 489 594
Accumulated depreciation
31 December 2007
141,914 368,061 509,975
Carrying amount
1 January 2008
30,510 152,446 153,764 15,916 352,636
Carrying amount
31 December 2008
45,168 158,245 163,202 18,176 384,791
Total
Note 23 – Investment property
7,090 TEUR
in TEUR 2008 2007
Land 4,332 2,225
Buildings 2,758 7,949
Total 7,090 10,174
Investment property includes land and buildings acquired for resale or increase in investment. Investment
property is stated using fair value model. The valuation of investment property by an independent
certified appraiser of real property was carried out in 2008.
Movement of investment property
in TEUR 2008 2007
Opening balance at 1 January 10,174 984
Acquisitions 559 3,705
Revaluation 2,566 0
Decrease -1,187 -286
Disposal of Group companies -1,981 0
Transfer from property, plant and equipment 114 5,771
Transfer to property, plant and equipment -3,155 0
Closing balance at 31 December 7,090 10,174

117
Note 24 – Non-current investments
12,721 TEUR
in TEUR 2008 2007
Available-for-sale investments in shares and interests 0 12,440
Long-term loans (1 to 5 years) 6,093 5,734
Long-term deposits 449 449
Other non-current investments 6,179 594
Total 12,721 19,217
Other non-current investments include long-term receivables recorded by Gorenje, d.d., and arising
from the disposal of non-operating assets and subsidiaries in the amount of TEUR 5,261.
Movement of long-term loans
in TEUR 2008 2007
Opening balance at 1 January 5,734 5,313
Increase 1,036 3,741
Acquisition through business combinations 0 11
Decrease -677 -3,270
Change in fair value 0 0
Transfer to current investments 0 -61
Closing balance at 31 December 6,093 5,734
Long-term loans include loans extended by the holding company of the Gorenje Group and its subsidiaries
to non-group companies. The interest rate, which depends on the currency in which the
loan is denominated, ranges from 2.0 % to 7.0 %.
Note 25 – Deferred tax assets and liabilities
Deferred taxes are calculated based on the temporary differences using the balance sheet liability
method. The applied tax rate is the current tax rate applicable in the country in which the respective
Group company is domiciled.
in TEUR
Deferred tax assets Deferred tax liabilities Tax assets – tax liabilities
2008 2007 2008 2007 2008 2007
Property, plant and equipment 44 25 4,918 -4,874 25
Investments 1,337 319 461 2,090 876 -1,771
Receivables 1,155 784 3 0 1,152 784
Inventories 153 332 688 0 -535 332
Liabilities arising from litigations 12 35 6 0 6 35
Provisions under local standards and tax laws 916 383 65 1,049 851 -666
Provisions for retirement benefits 3,871 4,146 0 0 3,871 4,146
Provisions for warranties 2,789 3,382 333 72 2,456 3,310
Total 10,277 9,406 6,474 3,211 3,803 6,195
Tax assets – tax
in TEUR
liabilities
Through profit or loss Through equity
2008 2007 2008 2007 2008 2007
Property, plant and equipment -4,874 25 -17 98 -2,604 0
Investments 876 -1,771 1,020 -912 1,440 103
Receivables 1,152 784 -171 47 0
Inventories -535 332 93 -17 0
Liabilities arising from litigations 6 35 -29 23 0
Provisions under local standards and tax laws 851 -666 -209 -357 0
Provisions for retirement benefits 3,871 4,146 -240 -218 0
Provisions for warranties 2,456 3,310 13 890 0
Total 3,803 6,195 460 -446 -1,164 103

118
2008
Both deferred tax assets and deferred tax liabilities were recognised by the Group companies in
2008. Deferred tax liabilities decreased (through profit or loss) and deferred tax assets increased
the tax base of the Group companies in 2008.
Deferred tax assets and deferred tax liabilities were not set off in the balance sheet.
Note 26 – Inventories
253,004 TEUR
in TEUR
Home
appliances
2008 2007
Other Total
Home
appliances
Other
Materials 72,401 9,584 81,985 60,413 9,173 69,586
Work in progress 18,448 3,704 22,152 13,468 3,346 16,814
Products 104,064 10,326 114,390 103,316 10,094 113,410
Merchandise 29,942 1,196 31,138 13,529 1,241 14,770
Advances 3,177 162 3,339 2,882 9 2,891
Total 228,032 24,972 253,004 193,608 23,863 217,471
Total
As at 31 December 2008, inventories showed an increase by TEUR 35,533 over the previous year’s
figure. An increase in inventories of merchandise was due to the inclusion of Atag Europe BV in the
Gorenje Group, and an increase in raw materials and materials was due to early, cost-effective purchases
of raw materials and materials. Inventories writedowns amounted to TEUR 1,727 in 2008.
Advances include advances for inventories of raw materials and materials.
Note 27 – Current investments
64,470 TEUR
in TEUR 2008 2007
Available-for-sale investments 22,224 17,276
Short-term deposits 2,140 3,106
Short-term loans 34,729 4,518
Interest receivable 192 182
Fair value of derivatives 5,185 2,026
Other current financial receivables 0 2
Total 64,470 27,110
A change in the fair value of available-for-sale investments in the amount of TEUR 8,895 refers to
a decrease in the fair value of shares to their stock market price as at 31 December 2008. The fair
value reserve in shareholders’ equity was reversed in the amount of TEUR 3,883 and the remaining
amount of TEUR 5,012, established by applying the valuation model based on conditions on the
limited active market, was recorded under financial expenses. The shares were transferred by the
Group from non-current investments to current investments in order to uniformly present available-for-sale
financial instruments.
Short-term interest receivable includes interest receivable from short-term loans accounted for until
the end of 2008.
Short-term loans include cash surplus deposited in short-term time deposits with banks and entities.
The interest rate for bank deposits and loans ranges from 2.8 % to 7.0%.
Movement of investments in available-for-sale investments
in TEUR 2008 2007
Opening balance at 1 January 17,276 7,936
Increase 6,452 8,576
Disposal of Group companies -53 0
Decrease -4,680 -7,228
Change in fair value -8,895 7,992
Transfer from non-current investments 12,124 0
Closing balance at 31 December 22,224 17,276

119
Note 28 – Trade receivables
262,017 TEUR
The book value of trade receivables corresponds, in all major items, to their fair value. Trade receivables
are measured at settlement value.
As at 31 December 2008, allowance for trade receivables amounted TEUR 15,444 (2007: TEUR
12,484). The movement of allowance for trade receivables is shown in note 38 (Financial instruments).
Note 29 – Other current assets
43,866 TEUR
in TEUR 2008 2007
Other short-term receivables 28,050 17,493
Short-term advances and collaterals given 6,016 3,078
Short-term deferred costs 7,375 4,746
Other current assets 2,425 2,587
Total 43,866 27,904
Other short-term receivables include, as a major item, short-term VAT receivables which were recorded
by the Gorenje Group in the amount of TEUR 14,493 at the year-end 2008 (2007: TEUR
12,384).
A significant portion of other current assets includes receivables recorded by Gorenje, d.d.. Shortterm
deferred costs include costs of services paid but not yet received.
Note 30 – Cash and cash equivalents
24,115 TEUR
in TEUR 2008 2007
Cash in hand 409 464
Cash balances in banks and other financial institutions 23,706 17,220
Total 24,115 17,684
Note 31 – Equity
394,522 TEUR
In accordance with the resolution of the 10th Shareholders’ Meeting of Gorenje, d.d., on 12 December
2006 and the Court Order of 7 November 2007 on the change in share capital, the share capital
was increased by 1,830,000 ordinary, freely transferable, no par value shares. At 31 December
2008, the share capital of Gorenje, d.d., amounted to EUR 58,546,152.56 (at 31 December 2007:
EUR 58,546.152.56) and was divided into 14,030,000 ordinary, freely transferable, no par value
shares.
Capital surplus (share premium) in the amount of TEUR 158,487 includes paid-in surplus in excess
of par value of shares in the amount of TEUR 47,264, surplus in excess of book value of disposed
own shares in the amount of TEUR 15,312 (1,070,000 own shares were disposed in 2008 in order
to purchase the Atag company), general equity revaluation adjustment in the amount of TEUR
78,048, and other effects of the transition to IFRS.
Legal and statutory reserves in the amount of TEUR 21,697 include legal reserves in the amount of
TEUR 12,895 (31 December 2007: TEUR 12,895), reserves for own shares in the amount of TEUR
3,170 (31 December 2007: 27,693), and statutory reserves in the amount of TEUR 5,632 (31 December
2007: TEUR 4,446).
Equity translation adjustments include foreign exchange differences arising from the translation of
the financial statements of foreign operations into the reporting currency.
Fair value reserve in the amount of TEUR 15,208 results from the change in fair value of availablefor-sale
investments in the amount of TEUR -6,171, the change in the value of cash flow hedge in the
amount of TEUR -8,660, and the creation of fair value reserve relating to land in the amount of TEUR
9,243. The change in the amount of TEUR -1,164 refers to the creation of deferred tax liabilities.

120
2008
Net profit or loss is distributed to shareholders in the amount stated in the accounting records in
compliance with the national regulations.
Own shares in the amount of TEUR 3,170 are stated as a deductible item of equity and are measured
at acquisition cost.
Earnings per share amounted to EUR 0.66 in 2008 (2007: EUR 2.03). No dilutive instruments have
been issued by the Company, therefore basic earnings per share is equal to diluted earnings per
share.
To calculate the EPS ratio, the net profit or loss of the Group and the weighted average number of
ordinary shares in the period are taken into account:
2008 (in TEUR)
Net profit or loss 8,872
Weighted average number of ordinary shares 13,469,497
Basic / Diluted earnings per share (in EUR) 0.66
2007 (in TEUR)
Net profit or loss 22,672
Weighted average number of ordinary shares 11,169,158
Basic / Diluted earnings per share (in EUR) 2.03
All issued shares are of the same class and entitle the owner to participate in the management of
the company. Each share gives one vote and a right to dividend.
2008 dividend per share amounted to EUR 0.45 (2007: EUR 0.42).
Note 32 – Provisions
55,366 TEUR
in TEUR 2008 2007
Provisions for warranties 32,735 29,340
Provisions for retirement benefits and jubilee premiums 19,563 18,850
Other provisions 3,068 3,463
Total 55,366 51,653
Long-term provisions for warranties were created on the basis of estimated costs of warranties
made from known data on the quality level of products and the costs of warranties.
Provisions for retirement benefits and jubilee premiums are based on the actuarial calculation of estimated
future payments of retirement benefits and jubilee premiums, which was made as at 31 December
2008. A significant portion of other provisions includes provisions for costs in respect of
the Directive on Waste Electrical and Electronic Equipment in the amount of TEUR 1,248 recorded
by ZEOS, d.o.o., and provisions for compensation claims in respect of the actions brought against
Gorenje, d.d., in the amount of TEUR 1,272.
Movement of provisions in 2008
Acquisition
of companies
in TEUR
Balance
1 Jan 08 Use
Exchange
difference Reversal Creation
Balance
31 Dec 08
Provisions for warranties 29,340 -21,384 -663 -3,374 22,485 6,331 32,735
Provisions for retirement benefits and
jubilee premiums
18,850 -768 -3 -535 1,674 345 19,563
Other provisions 3,463 -1,119 -34 -618 1,352 24 3,068
Total 51,653 -23,271 -700 -4,527 25,511 6,700 55,366

121
Movement of provisions in 2007
Discontinued
operations
Acquisition
of
companies
in TEUR
Balance
1 Jan 07 Use
Exchange
difference Reversal
Creation
Balance
31 Dec 07
Provisions for warranties 27,087 -14,331 -115 -2,226 18,925 29,340
Provisions for retirement benefits and
jubilee premiums
19,318 -1,730 1 -401 -176 822 1,016 18,850
Other provisions 2,055 -115 5 -19 1,537 3,463
Total 48,460 -16,176 -109 -2,646 -176 21,284 1,016 51,653
Note 33 – Deferred income from government grants
8,936 TEUR
in TEUR
Balance
1 Jan 2008 Depreciation Creation
Balance
31 Dec 2008
Deferred income from government grants 8,717 -2,951 3,170 8,936
Total 8,717 -2,951 3,170 8,936
in TEUR
Balance
1 Jan 2007 Depreciation Creation
Balance
31 Dec 2007
Deferred income from government grants 7,901 -2,568 3,384 8,717
Total 7,901 -2,568 3,384 8,717
Note 34 – Non-current financial liabilities
224,119 TEUR
in TEUR 2008 2007
Financial liabilities to banks 280,716 188,974
Other financial liabilities 7,807 5,495
Transfer to current financial liabilities -64,404 -49,367
Total 224,119 145,102
Maturity of non-current financial liabilities to banks
in TEUR
1–2 years 61,716
2–4 years 124,401
4–6 years 28,202
6–9 years 1,993
Total 216,312
Non-current borrowings from banks
Currency
Amount in currency
(in 000)
Amount in
TEUR
Interest rate
from
To
EUR 216,312 2.40 % 4.14 %
Other 0
Total 216,312
The effective interest rate is equal to the contractual interest rate.
Collateralisation
in TEUR
Bills 214,875
Financial covenants 197,397
Guarantees 15,599
Mortgage 0
Some non-current borrowings are simultaneously secured by several forms of collateralisation.
Guarantees include guarantees and sureties issued by Gorenje, d.d. and Gorenje BeteiligungsGmbH
to the commercial banks to secure liabilities of Group companies.

122
2008
Note 35 – Current financial liabilities
263,676 TEUR
in TEUR 2008 2007
Current borrowings from banks 185,377 113,692
Current portion of non-current financial liabilities to banks 64,404 49,313
Current borrowings from other entities 2,121 2,527
Current portion of non-current financial liabilities to others 0 54
Interest payable 1,100 582
Dividend payable 204 172
Fair value of derivatives 10,470 1,073
Total 263,676 167,413
Current borrowings from banks
Interest rate
Currency Amount in currency (in 000) Amount in TEUR from to
EUR 223,934 3.50 % 4.14 %
CZK 464,302 17,276 3.90 % 4.50 %
DKK 35,157 4,719 4.50 % 7.10 %
USD 3,100 2,227 1.14 % 1.39 %
PLN 5,089 1,225 6.38 %
MKD 14,064 232 7.63 %
RSD 15,000 168 19.28 %
Total 249,781
Current borrowings from other entities
Interest rate
Currency Amount in currency (in 000) Amount in TEUR from to
EUR 2,121 3.80 % 4.10 %
Other
Total 2,121
The effective interest rate is equal to the contractual interest rate.
Collateralisation
in TEUR
Bills 223,915
Financial covenants 75,795
Guarantees 45,400
Mortgage 0
Some non-current borrowings are simultaneously secured by several forms of collateralisation.
Guarantees include guarantees and sureties issued by Gorenje, d.d., and Gorenje BeteiligungsGmbH
to the commercial banks to secure liabilities of Group companies.
Note 36 – Trade and other payables
223,660 TEUR
Within total trade and other payables in the amount of TEUR 223,660, no payables to the members
of the Management Board, the Supervisory Board and internal owners are recorded as of the
balance sheet date.
Note 37 – Other current liabilities
79,164 TEUR
in TEUR 2008 2007
Payables to employees 13,753 7,752
Payables to state institutions 9,482 12,010
Short-term accrued costs and expenses 25,316 18,745
Other payables 30,613 13,039
Total 79,164 51,546
Payables to employees and payables to state institutions in respect of contributions and taxes refer
to wages and salaries for December paid in January of the following year.

123
Short-term accrued costs and expenses were created for accrued costs of discounts, accrued interest
expense, and other accrued costs of services.
Note 38 – Financial instruments
Credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum
credit risk exposure at the reporting date was:
in TEUR 2008 2007
Available-for-sale financial assets 22,224 29,716
Loans 40,822 10,252
Trade and other receivables 305,883 286,439
Cash and cash equivalents 24,115 17,684
Interest rate swaps used for hedging: assets 327 2,026
Forward exchange contracts used for hedging: assets 4,793 0
Total 398,164 346,117
The maximum credit risk exposure of trade receivables at the reporting date - by geographic region:
in TEUR 2008 2007
EU countries 210,299 206,886
East European countries 49,700 51,427
Other regions 2,018 222
Total 262,017 258,535
The maximum credit risk exposure of trade receivables at the reporting date - by type of
customer:
in TEUR 2008 2007
Wholesale customers 223,982 224,592
Retail customers 28,836 28,198
Other customers 9,199 5,745
Total 262,017 258,535
The aging of trade receivables at the reporting date:
in TEUR
Gross amount Allowance Gross amount Allowance
2008 2008 2007 2007
Not past due 202,740 206,014
Past due 1 - 45 days 36,223 36,829
Past due 46 - 90 days 9,806 5,736
Past due 91 - 180 days 7,284 4,566
Past due more than 180 days 21,408 15,444 17,874 12,484
Total 277,461 15,444 271,019 12,484
Movement in allowances for trade receivables
in TEUR 2008 2007
Opening balance at 1 January 12,484 13,011
Impairment loss 3,512 3,413
Recovered bad debt -307 -3,462
Write-off of receivables -245 -51
Disposal of companies 0 -427
Closing balance at 31 December 15,444 12,484

124
2008
Liquidity risk
Shown below is the maturity of financial liabilities:
31 December 2008
in TEUR
Carrying
amount
Contractual
cash flows
1 year or
less
1 – 2 years
2 – 5
years
More than
5 years
Non-derivative financial liabilities
Bank borrowings 466,093 492,980 259,155 69,700 161,545 2,580
Other financial liabilities 27,701 27,701 27,701
Trade and other payables 308,441 308,441 308,441
Total 802,235 829,122 595,297 69,700 161,545 2,580
Derivative financial liabilities
Interest rate swaps -10,078 -10,078 985 -11,013 -50
Forward exchange contracts used
for hedging
4,858 4,858 4,858
Outflow
Inflow 4,858 4,858 4,858
Total -5,220 -5,220 5,843 -11,013 -50
31 December 2007
in TEUR
Carrying
amount
Contractual
cash flows
1 year or
less
1 – 2 years
2 – 5
years
More than
5 years
Non-derivative financial liabilities
Bank borrowings 302,666 331,749 160,372 52,594 109,157 9,626
Other financial liabilities 8,776 8,776 8,776
Trade and other payables 273,707 273,707 273,707
Total 585,149 614,232 442,855 52,594 109,157 9,626
Derivative financial liabilities
Interest rate swaps 2,026 4,194 1,948 1,641 605 0
Forward exchange contracts used
for hedging
-1,073 -1,073 -1,073
Outflow -1,273 -1,273 -1,273
Inflow 200 200 200
Total 953 3,121 875 1,641 605 0
The following table shows the periods in which the cash flows from derivatives, which are cash flow
hedge, are expected to occur and their impact on profit and loss:
2008
in TEUR
Carrying
amount
Expected
cash flows
1 year or
less
1 – 5 years
Interest rate swaps
Assets (Liabilities) -10,078 -10,078 985 -11,063
Forward exchange contracts
Assets (Liabilities) 4,793 4,793 4,793
Total -5,285 -5,285 5,778 -11,063
More than
5 years

125
2007
in TEUR
Carrying
amount
Expected
cash flows
1 year or
less
1 – 5 years
More than
5 years
Interest rate swaps
Assets (Liabilities) 2,026 4,194 1,948 2,246 0
Forward exchange contracts
Assets (Liabilities) -1,073 -1,073 -1,073
Total 953 3,121 875 2,246 0
Currency risk
The Group’s exposure to foreign currency risk:
31 December 2008
in TEUR EUR HRK DKK PLN RSD CZK Other
Trade receivables 187,758 24,325 3,297 7,697 15,767 3,280 25,805
Financial liabilities (borrowings) -440,194 - -4,719 -1,225 -168 -17,276 -4,632
Operating liabilities -219,253 -2,652 -957 -1,296 -4,331 -4,361 -9,176
Balance sheet exposure -471,689 21,673 -2,379 5,176 11,268 -18,357 11,997
Forward exchange contracts 0 -16,391 0 -17,985 0 0 13,421
Net exposure -471,689 5,282 -2,379 -12,809 11,268 -18,357 25,418
31 December 2007
in TEUR EUR HRK DKK PLN RSD CZK Other
Trade receivables 153,139 32,551 10,445 8,956 9,896 11,042 29,689
Financial liabilities (borrowings) -282,948 - -4,367 -1,616 - -19,580 -2,931
Operating liabilities -197,411 -1,887 -2,154 -2,352 -3,913 -5,771 -6,773
Balance sheet exposure -327,220 30,664 3,924 4,988 5,983 -14,309 19,985
Forward exchange contracts - -6,145 - -15,926 -17,718 -5,943 5,031
Net exposure -327,220 24,519 3,924 -10,938 -11,735 -20,252 25,016
The following significant exchange rates were applied during the year:
Average rate
Reporting date spot rate
2008 2007 2008 2007
HRK 7.224 7.338 7.356 7.331
CZK 24.959 27.755 26.875 26.628
DKK 7.456 7.451 7.451 7.458
RSD 81.188 79.745 89.372 82.874
PLN 3.515 3.783 4.154 3.594
Sensitivity analysis
A 5-percent increase of the euro against the stated currencies as at 31 December would have increased
(decreased) net profit or loss by the amounts shown below. This analysis assumes that all
other variables, in particular interest rates, remain unchanged. The analysis has been performed on
the same basis as for 2007.
31 December 2008 in TEUR
Net profit or loss
HRK -264
DKK 119
PLN 640
RSD -563
CZK 918
Other currencies -1,284

126
2008
31 December 2007 in TEUR
Net profit or loss
HRK -1,226
DKK -196
PLN 547
RSD 587
CZK 1,013
Other currencies -1,251
A 5- percent decrease of the euro against the stated currencies as at 31 December would have had
the equal yet opposite effect, provided that all other variables remain unchanged.
Interest rate risk
The Group’s exposure to interest rate risk:
In TEUR 2008 2007
Fixed rate financial instruments
Financial assets 2,267
Financial liabilities 28,118 31,763
Variable rate financial instruments
Financial liabilities 432,256 279,679
Fair value sensitivity analysis for fixed rate instruments
The Group does not record any fixed rate financial instruments at fair value through profit or loss
and derivatives designated as fair value hedge. Therefore a change in the interest rate at the reporting
date would not have any impact on net profit or loss.
Fair value sensitivity analysis for variable rate instruments
A change in the interest rate by 100 basis points (bp) at the reporting date would have increased
(decreased) net profit or loss by the amounts shown below. This analysis assumes that all other variables,
in particular foreign currency rates, remain unchanged. The analysis has been performed on
the same basis as for 2007.
Net profit or loss
in TEUR
Increase
Decrease
100 bp 100 bp
31 December 2008
Variable rate instruments -3,700 3,700
Interest rate swap 749 -749
Cash flow sensitivity -2,951 +2,951
31 December 2007
Variable rate instruments -2,375 2,375
Interest rate swap 1,403 -1,401
Cash flow sensitivity -972 974

127
Note 39 – Fair value
The fair value and the carrying amount of assets and liabilities:
In TEUR
Carrying
amount
Fair value
Carrying
amount
Fair value
2008 2008 2007 2007
Available-for-sale investments 22,224 22,224 29,716 29,716
Non-current loans 6,542 6,542 6,183 6,183
Current loans 37,061 37,061 7,808 7,808
Derivatives -5,285 -5,285 953 953
Trade receivables 262,017 262,017 258,535 258,535
Other current assets 43,866 43,866 27,904 27,904
Cash and cash equivalents 24,115 24,115 17,684 17,684
Non-current financial liabilities -224,119 -224,119 -145,102 -145,102
Current financial liabilities -253,206 -253,206 -166,340 -166,340
Trade payables -223,660 -223,660 -220,261 -220,261
Other payables -79,164 -79,164 -51,546 -51,546
Total -389,609 -389,609 -234,466 -234,466
Available-for-sale investments are measured at fair value based on market prices.
Forward exchange transactions
At 31 December 2008, forward exchange transactions were recorded by Gorenje, d.d., in the total
amount of TEUR 51,795. Forward exchange transactions were used in 2008 to hedge against
changes in the currency parity between EUR/PLN, EUR/AUD, EUR/USD, EUR/HRK, EUR/HUF,
EUR/GBP and EUR/RSD. At the year-end 2008, the hedge of the following currency parities was
shown: EUR/PLN, EUR/USD, EUR/HRK and EUR/GBP. The maturity of forward exchange transactions
is a short-term maturity (up to one year).
The basis for determination of fair value of financial instruments is provided on the Reuters portal.
The decisive values are the values of the opposite forward exchange transactions with the same
maturities effective at the reporting date. The fair value of forward exchange transactions at the
balance sheet date is the difference between the value of actually concluded forward exchange
transactions and the value of the opposite forward exchange transactions at the balance sheet
date, taking into consideration the same maturities of separate forward exchange transactions.
The total fair value of forward exchange transactions amounted to TEUR 4,858 at 31 December
2008 and was recorded under other investments.
Interest rate swap transactions
The amount of hedged items recorded by Gorenje, d.d., for which interest rate swap transactions
were concluded, totalled TEUR 150,429 at 31 December 2008. Interest rate swap transactions are
used to hedge against changes in the variable interest rate EURIBOR. The maturity of transactions
is a long-term maturity; they mature successively until 31 January 2012.
The basis for determination of fair value of financial instruments is provided on the Reuters portal;
the decisive values are the values of interest rate swap transactions with the same maturities effective
at the balance sheet date.
The fair value of interest rate swap transactions at the balance sheet date is the discounted difference
between the interest cash flow under the interest rate swap contracts and the interest cash
flow under the interest rate swap contracts of equal value at the balance sheet date.
The fair value of interest rate swap transactions totalled TEUR -10,078 at 31 December 2008 and
was recorded under other current assets.

128
2008
A portion of hedged items under the interest rate swap contracts and the forward exchange contracts,
which relate to hedged items in the balance sheet, were recorded in equity under fair value
reserve.
Loans and borrowings are measured on the basis of recalculation using the effective interest rates,
which do not differ essentially from the stipulated interest rates. Therefore, the stipulated interest
rate is used in calculations. The majority of loans and borrowings are measured using the variable
interest rate.
Current trade receivables are not discounted due to short-term maturity. However, impairment loss
on fair value is considered.
Note 40 – Related party transactions
The related party transactions recorded by the Group companies were consummated based on the
sale/purchase contracts concluded with related parties on terms equivalent to those prevailing in
the arm’s-length transactions.
Information on groups of persons
The Gorenje Group companies paid to the below stated groups of persons in 2008 the following
gross emoluments:
in TEUR
Type of emoluments
Management Board
and management of
the companies
Supervisory Board
Employees
under individual
employment
agreement
Wages and salaries 6,577 10,763
Fringe benefits and other
emoluments
1,338 205 737
Total 7,915 205 11,500
No non-current and current loans were extended by the Group companies to the members of the
Management Board, Supervisory Board and internal owners.
The Gorenje Group companies paid to the below stated groups of persons in 2007 the following
gross emoluments:
in TEUR
Type of emoluments
Management Board
and management of
the companies
Supervisory Board
Employees
under individual
employment
agreement
Wages and salaries 5,293 9,679
Fringe benefits and other
emoluments
700 170 711
Total 5,993 170 10,390
Note 41 – Events after the balance sheet date
Considering the circumstances of the economical crisis faced by the Gorenje Group already in the
last months of 2008, the management prepared several business scenarios for 2009 to facilitate a
quick and efficient response to the turbulent business conditions.

129
In the first two months of 2009, the Group faced a 20 to 25-percent drop in the operations, the
downward trend remaining similar to the one in the last few months of 2008. The majority of the
manufacturers operating in the business segment recorded a loss in the last Quarterly of 2008.
Therefore numerous activities were launched in December 2008 whose purpose is to neutralize the
negative impact of the extremely low sales. They are directed to all areas of the Group’s operations
and all business processes, relating to:
• the cost management of raw materials (inventory optimisation, favourable term
purchase of raw materials, further development of supply sources from Asia in
other dollar-based supply markets and South-Eastern European countries, further
cost-cutting measures to be adopted in association with the cost of materials),
• production process (flexibility in the adaptation of the production to the level
of orders),
• purchase of goods (adjustment of purchases to the current requirements),
• sales (sales promotion, intensifying of customer contacts, search for new business
opportunities, simplification),
• costs of logistics (maximizing the utilization of transportation means),
• investments (approval of solely the most urgent investments whose purpose is
new product development),
• marketing area (cost-cutting in all markets, limiting the costs to costs that are directly
linked to sales promotion),
• costs of services (decrease in the management and general administration
costs, adaptation of costs to the range of sales, strengthening the control over
the cost base),
• assurance of positive cash flows (raising new long-term loans, receivables optimisation,
assuring short-term liquidity),
• a decrease in current assets (management of inventories and receivables) and
• labour cost optimisation (implementation of a 36-hour weekly working time, a
10-percent salary decrease, organisational restructuring and restructuring of
business processes).

130
2008
Note 42 – Business segments
in TEUR
Home appliances
2008 2007
Revenue from the sale to third parties 1,077,285 1,035,614
Intra-segment revenue 9,955 10,884
Total revenue 1,087,240 1,046,498
Depreciation expense 50,151 46,897
Operating profit or loss 29,963 31,894
Share of profit in associates
Net finance expense
Income tax
Net profit or loss for the period
Total assets 1,068,689 836,682
Total liabilities 755,920 575,763
Investments 58,550 57,013
Impairment of investments 5,011 55
Note 43 – Geographical segments
in TEUR EU Other divisions
2008 2007 2008 2007
Revenue from the sale to third parties 929,813 912,542 368,318 332,878
Total assets 933,757 642,169 307,727 328,788
Investments 51,092 43,961 24,657 27,842

131
Other divisions Eliminations Group
2008 2007 2008 2007 2008 2007
253,468 257,824 1,330,753 1,293,438
30,320 25,600 -40,275 -36,484 0 0
283,788 283,424 -40,275 -36,484 1,330,753 1,293,438
6,970 6,314 57,121 53,211
6,930 7,752 36,893 39,646
0 8
-21,420 -10,254
-5,292 -5, 736
10,181 23,664
189,043 164,106 1,257,732 1,000,788
107,290 74,040 863,210 649,803
18,257 17,093 76,807 74,106
1 40 5,012 95
Other countries Eliminations Group
2008 2007 2008 2007 2008 2007
32,622 48,018 1,330,753 1,293,438
16,248 29,831 1,257,732 1,000,788
1,058 2,303 76,807 74,106

132
2008
4.1.1.3 POROČILO REVIZORJA

133
Appendix 1: Information on the Gorenje Group companies
Group companies Share capital (in TEUR) No. of employees
Gorenje, d.d., Slovenia 58,546 5,253
Gorenje I.P.C., d.o.o., Slovenia 93 778
Gorenje Tiki, d.o.o., Slovenia 257 364
Gorenje GTI, d.o.o., Slovenia 8,426 116
Gorenje Notranja oprema, d.o.o., Slovenia 3,835 1,004
Gorenje Gostinstvo, d.o.o., Slovenia 3,790 204
LINEA SP, d.o.o., Slovenia 18 13
ENERGYGOR, d.o.o., Slovenia 9 0
KEMIS, d.o.o., Slovenia 1,450 23
Gorenje Orodjarna, d.o.o., Slovenia 927 220
Indop, d.o.o., Slovenia 1,000 18
ZEOS, d.o.o., Slovenia 477 3
SUROVINA, d.d., Slovenia 4,849 365
ISTRABENZ GORENJE, d.o.o., Slovenia 5,433 19
GEN-I, d.o.o., Slovenia 1,974 12
Istrabenz investicijski inženiring, d.o.o., Slovenia 708 0
Istrabenz Gorenje inženiring, d.o.o., Slovenia 607 5
ERICo, d.o.o., Slovenia 278 57
Gorenje design studio, d.o.o., Slovenia 500 16
Gorenje Projekt, d.o.o., Slovenia 88 1
PUBLICUS, d.o.o., Slovenia 897 25
IG AP, d.o.o., Slovenia 4 8
Gorenje Beteiligungs GmbH, Austria 17,000 4
Gorenje Austria Handels GmbH, Austria 3,275 61
Gorenje Vertriebs GmbH, Germany 5,700 54
Gorenje Körting Italia S.r.l., Italy 1,043 8
Gorenje France S.A.S., France 3,225 26
Gorenje BELUX S.a.r.l., Belgium 19 4
Gorenje UK Ltd., Great Britain 105 12
Gorenje Skandinavien A/S, Danmark 2,392 52
Gorenje AB, Sweden 184 5
Gorenje spol. s r.o., Czech Republic 4,564 41
Gorenje real spol. s r.o., Czech Republic 9,675 64
Gorenje Slovakia s.r.o., Slovak Republic 1,892 47
Gorenje Budapest Kft., Hungary 2,681 23
Gorenje Polska Sp. z o.o., Poland 2,408 37
Gorenje Bulgaria EOOD, Bulgria 3,175 16
Gorenje Zagreb, d.o.o., Croatia 13,428 159
Gorenje Skopje, d.o.o., Macedonia 252 18
Gorenje Commerce, d.o.o., Bosnia and
Herzegovina
1 47
Gorenje, d.o.o., Serbia 4,325 64
Gorenje Invest, d.o.o., Serbia 1,130 12
Gorenje Podgorica, d.o.o., Montenegro 2,800 17
Gorenje OY, Finland 115 3
Gorenje AS, Norway 226 4
OÜ Gorenje, Estonia 3 0
SIA Gorenje, Latvia 88 2
Gorenje Romania S.R.L., Romania 406 12
Gorenje aparati za domaćinstvo, d.o.o., Serbia 28,011 464
Mora Moravia s r.o., Czech Republic 10,185 7
Gorenje Küchen GmbH, Austria 35 1
Gorenje – kuchyně spol. s r.o., Czech Republic 1,563 42
ST Bana Nekretnine, d.o.o., Serbia 2,666 0
KEMIS -Termoclean, d.o.o., Croatia 772 58
Kemis - BH, d.o.o., Bosnia and Herzegovina 210 7

134
2008
Gorenje Gulf FZE, United Arab Emirates 214 4
Gorenje Espana S.L., Spain 3 4
Gorenje Tiki, d.o.o., Serbia 8,735 172
GEN-I Zagreb, d.o.o., Croatia 1 0
GEN-I, d.o.o., Serbia 34 1
Intrade energija, d.o.o., Bosnia and Herzegovina 10 2
Vitales, d.o.o., Nova Bila, Bosnia and Herzegovina 987 26
Vitales, d.o.o., Bihać, Bosnia and Herzegovina 157 7
Gorenje Istanbul Ltd., Turkey 1,902 9
Gorenje TOV, Ukraine 72 6
Sirovina, a.d., Serbia 242 18
GEN-I Budapest, Kft., Hungary 46 1
Gorenje kuhinje, d.o.o., Ukraine 1,026 29
Kemis - SRS, d.o.o., Bosnia and Herzegovina 1 1
ATAG Nederland BV, The Netherlands 16 344
ATAG België NV, Belgium 248 39
ATAG Financiele Diensten BV, The Netherlands 200 0
ATAG Financial Services BV, The Netherlands 18 0
Intell Properties BV, The Netherlands 45 0
ATAG Europe BV, The Netherlands 18 0
ATAG Special Products BV, The Netherlands 0 0
Gorenje Holding B.V., The Netherlands 90 0
Gorenje Kazakhstan, TOO, Kazakhstan 44 0
Appendix 2: Managing directors
The Group companies were managed in 2008 by the following managing directors:
Companies
Gorenje, d.d., Slovenia
Gorenje I.P.C., d.o.o., Slovenia
Gorenje Tiki, d.o.o., Slovenia
Gorenje GTI, d.o.o., Slovenia
Gorenje Notranja oprema, d.o.o., Slovenia
Gorenje Gostinstvo, d.o.o., Slovenia
LINEA SP, d.o.o., Slovenia
ENERGYGOR, d.o.o., Slovenia
KEMIS, d.o.o., Slovenia
Gorenje Orodjarna, d.o.o., Slovenia
Indop, d.o.o., Slovenia
ZEOS, d.o.o., Slovenia
SUROVINA, d.d., Slovenia
ISTRABENZ GORENJE, d.o.o., Slovenia
GEN-I, d.o.o., Slovenia
Istrabenz investicijski inženiring, d.o.o., Slovenia
Istrabenz Gorenje inženiring, d.o.o., Slovenia
Managing directors
Franc Bobinac, President of the Management Board
Franc Košec, Member of the Management Board
Mirjana Dimc Perko, Member of the Management Board
Uroš Marolt, Member of the Management Board
Branko Apat, Member of the Management Board
Drago Bahun, Member of the Management Board
Philip Alexander Sluiter, Member of the Management Board
(until 26 February 2009)
Simon Kumer (until 31 January 2008),
Mirko Rožanc (since 1 February 2008)
Branko Apat
Cita Špital-Meh
Gregor Verbič (until 31 January 2009),
Uroš Marolt (since 1 February 2009)
Saša Oprešnik
Franjo Gjerkeš
Marijan Penšek
Emil Nanut
dr. Blaž Nardin
Boris Jurkošek
Emil Šehič
Marko Fon
dr. Robert Golob, President of the MB
Aleksander Mervar, Member of the MB (until 31 October 2008)
dr. Robert Golob, President of the MB
Martin Novšak, Deputy President of the MB
dr. Dejan Paravan, Member of the MB
dr. Igor Koprivnikar, Member of the MB
dr. Robert Golob
Aleksander Mervar (until 31 July 2008),
Gorazd Jamnik (since 1 August 2008)

135
ERICo, d.o.o., Slovenia
Gorenje design studio, d.o.o., Slovenia
Gorenje Projekt, d.o.o., Slovenia
PUBLICUS, d.o.o., Slovenia
IG AP, d.o.o., Slovenia
Gorenje Beteiligungs GmbH, Austria
Gorenje Austria Handels GmbH, Austria
Gorenje Vertriebs GmbH, Germany
Gorenje Körting Italia S.r.l., Italy
Gorenje France S.A.S., France
Gorenje BELUX S.a.r.l., Belgium
Gorenje UK Ltd., Great Britain
Gorenje Skandinavien A/S, Danmark
Gorenje AB, Sweden
Gorenje spol. s r.o., Czech Republic
Gorenje real spol. s r.o., Czech Republic
Gorenje Slovakia s.r.o., Slovak Republic
Gorenje Budapest Kft., Hungary
Gorenje Polska Sp. z o.o., Poland
Gorenje Bulgaria EOOD, Bulgaria
Marko Mavec
Jurij Giacomelli
Bogdan Topič
Bogomir Eržen
Marko Urbanija
Ciril Pucko, Holder of the General Power of Attorney
Marko Šefer
Sandra Lubej
Alojz Gabrovec (until 31 August 2008),
Klemen Prešeren (since 1 September 2008)
Matjaž Geratič
Matjaž Geratič (until 3 February 2009),
Matej Čufer (since 4 February 2009)
Matjaž Geratič (until 3 February 2009),
Matej Čufer (since 4 February 2009)
Matej Čufer (until 28 February 2009),
Jernej Hren (since 1 March 2009)
Kristian Hansen
Kristian Hansen
Suad Hadžić
Suad Hadžić
Bogdan Urh
Bogdan Urh
Matjaž Šuln (until 6 January 2008),
Franc Rogan (since 7 January 2008)
Darko Mlinar
Gorenje Zagreb, d.o.o., Croatia Janez Živko (until 30 June 2008), Jan Štern (since 1 July 2008)
Gorenje Skopje, d.o.o., Macedonia
Nenad Jovanović
Gorenje Commerce, d.o.o., Bosnia and
Herzegovina
Gorenje, d.o.o., Serbia
Gorenje Invest, d.o.o., Serbia
Gorenje Podgorica, d.o.o., Montenegro
Gorenje OY, Finland
Gorenje AS, Norway
OÜ Gorenje, Estonia
SIA Gorenje, Latvia
Gorenje Romania S.R.L., Romania
Gorenje aparati za domaćinstvo, d.o.o., Serbia
Mora Moravia s r.o., Czech Republic
Gorenje Küchen GmbH, Austria
Gorenje – kuchyně spol. s r.o., Czech Republic
ST Bana Nekretnine, d.o.o., Serbia
KEMIS -Termoclean, d.o.o., Croatia
Kemis - BH, d.o.o., Bosnia and Herzegovina
Gorenje Gulf FZE, United Arab Emirates
Gorenje Espana, S.L., Spain
Gorenje Tiki, d.o.o., Serbia
GEN-I Zagreb, d.o.o., Croatia
GEN-I, d.o.o., Serbia
Intrade energija, d.o.o., Bosnia and Herzegovina
Vitales, d.o.o., Nova Bila, Bosnia and Herzegovina
Vitales, d.o.o., Bihać, Bosnia and Herzegovina
Gorenje Istanbul Ltd., Turkey
Gorenje TOV, Ukraine
Sirovina, a.d., Serbia
GEN-I Budapest Kft., Hungary
Janez Kumer (until 30 June 2008),
Robert Polšak (since 1 July 2008)
Marko Mrzel
Marko Mrzel
Darko Vukčević
Kristian Hansen
Kristian Hansen
Kristian Hansen
Kristian Hansen
Anton Prislan
Mirko Meža
Vitezslav Ružička
Stane Romih, Liquidator
Viktor Faktor
Rudolf Krebl
Zoran Matić
Damir Muratović (until 30 April 2008),
Maid Hadžimujić (since 1 May 2008)
Nermin Salman
Matjaž Geratič
Branko Apat
dr. Igor Koprivnikar
dr. Igor Koprivnikar
Emir Avdić
Aleksander Krofl (until 30 November 2008),
Borut Del Fabbro (since 1 December 2008)
Borut Del Fabbro
Suad Mujakić
Jan Štern (until 30 April 2008),
Matjaž Podlogar (since 1 May 2008)
Jelica Berber
dr. Igor Koprivnikar

136
2008
Gorenje kuhinje, d.o.o., Ukraine
Kemis - SRS, d.o.o., Bosnia and Herzegovina
ATAG Nederland BV, The Netherlands
ATAG België NV, Belgium
ATAG Financiele Diensten BV, The Netherlands
ATAG Financial Services BV, The Netherlands
Intell Properties BV, The Netherlands
ATAG Europe BV, The Netherlands
ATAG Special Products BV, The Netherlands
Gorenje Holding B.V., The Netherlands
Gorenje Kazakhstan, TOO, Kazakhstan
Elena Tirleckaya
Mladen Đekić
Philip Alexander Sluiter, Berend Johannes Hofenk
Jackie Haeck, Guy De Mey
Philip Alexander Sluiter, Berend Johannes Hofenk
Philip Alexander Sluiter, Berend Johannes Hofenk
Philip Alexander Sluiter, Berend Johannes Hofenk
Philip Alexander Sluiter, Berend Johannes Hofenk
Philip Alexander Sluiter, Berend Johannes Hofenk
Franc Bobinac, Janez Živko
Roman Jeglič
Appendix 3: Foreign exchange rates
Country
Currency
Unit
Final
exchange
rate
in EUR
2008 2007
Average
exchange
rate
in EUR
Final
exchange
rate
in EUR
Average
exchange
rate
in EUR
Australia AUD 1 2.027 1.742 1.676 1.636
Czech Republic CZK 1 26.875 24.959 26.628 27.755
Denmark DKK 1 7.451 7.456 7.458 7.451
Great Britain GBP 1 0.953 0.797 0.733 0.685
Croatia HRK 1 7.356 7.224 7.331 7.338
Hungary HUF 1 266.700 251.738 253.730 251.256
Norway NOK 1 9.750 8.225 7.958 8.018
Poland PLN 1 4.154 3.515 3.594 3.783
Sweden SEK 1 10.870 9.617 9.442 9.252
Slovak Republic SKK 1 30.126 31.272 33.583 33.772
USA USD 1 1.392 1.471 1.472 1.371
Turkey TRY 1 2.149 1.907 1.717 1.787
Bosnia and Herzegovina BAM 1 1.956 1.956 1.956 1.956
Bulgaria BGN 1 1.956 1.956 1.956 1.956
Macedonia MKD 1 60.600 61.697 61.568 61.387
Switzerland CHF 1 1.485 1.583 1.655 1.642
Romania RON 1 4.023 3.684 3.608 3.338
Serbia RSD 1 89.372 81.188 82.874 79.745
Estonia EEK 1 15.647 15.647 15.647 15.647
Ukraine UAH 1 6.571 7.617 7.479 6.879
Latvia LVL 1 0.708 0.703 0.696 0.700
United Arab Emirates AED 1 4.675 5.442 5.396 5.016
Kazakhstan KZT 1 153.210 167.804 178.379 168.374

137
4.1.2 ACCOUNTING REPORT OF GORENJE, D.D.
4.1.2.1 FINANCIAL STATEMENTS OF GORENJE, D.D.
Income statement of Gorenje, d.d.
in TEUR Notes 2008 2007
Revenue 7 764,106 831,273
Changes in inventories 2,043 4,988
Other operating income 8 11,196 11,470
Gross profit 777,345 847,731
Cost of goods, materials and services 9 -613,986 -681,699
Employee benefits expense 10 -110,305 -107,623
Amortisation and depreciation expense 11 -35,605 -33,991
Other operating expenses 12 -3,355 -4,154
Results from operating activities 14,094 20,264
Finance income 24,973 11,629
Finance expenses -27,183 -16,554
Net finance expense 13 -2,210 -4,925
Profit before tax 11,884 15,339
Income tax expense 14 88 -2,127
Profit for the period 11,972 13,212
Earnings per share – basic / diluted (in EUR) 0.89 1.18
Balance Sheet of Gorenje, d.d.
in TEUR Pojasnila 2008 2007
ASSETS 873,840 676,375
Non-current assets 489,141 340,858
Intangible assets 15 17,440 18,243
Property, plant and equipment 16 195,692 189,392
Investment property 17 4,462 2,698
Investments in subsidiaries 18 258,830 113,862
Other non-current investments 19 7,444 12,207
Deferred tax assets 20 5,273 4,456
Current assets 384,699 335,517
Inventories 21 105,948 93,869
Current investments 22 86,817 28,123
Trade receivables 23 172,327 200,671
Other current assets 24 18,825 12,823
Current tax assets 24 708 0
Cash and cash equivalents 25 74 31
EQUITY AND LIABILITIES 873,840 676,375
Equity 26 312,566 274,785
Share capital 58,546 58,546
Share premium 140,624 125,851
Legal reserves and statutory reserves 21,697 45,034
Retained earnings 94,059 64,660
Fair value reserve 810 8,387
Own shares -3,170 -27,693
Non-current liabilities 221,990 138,724
Provisions 28 24,187 26,212
Deferred tax liabilities 20 2,087 1,886
Non-current financial liabilities 29 195,716 110,626
Current liabilities 339,284 262,866
Current financial liabilities 30 162,727 63,221
Trade and other payables 31 160,692 177,265
Other current liabilities 32 15,865 22,117
Current tax liabilities 0 263

138
2008
Cash flow statement of Gorenje, d.d.
in TEUR Notes 2008 2007
A. CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the period 11,972 13,212
Adjustments for:
Depreciation of property, plant and equipment 11,16 31,773 31,083
Amortisation of intangible assets 11,15 3,832 2,908
Investment income 13 -24,973 -11,629
Finance expenses 13 22,790 16,554
Gain on sale of property, plant and equipment -586 -1,199
Gain from revaluation of investment property -2,154 0
Income tax expense 14 -88 2,127
Operating profit before changes in net operating current
assets and provisions
42,566 53,056
Change in trade receivables 24,884 -6,329
Change in inventories 21 -12,079 -5,448
Change in provisions 28 -2,025 -449
Change in trade and other liabilities -22,622 -6,215
Cash generated from operations -11,842 -18,441
Interest paid -17,598 -12,725
Income taxes paid -1,540 -1,346
Net cash from operating activities 11,586 20,544
B. CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property, plant and equipment 1,946 4,316
Interest received 5,924 3,808
Dividends received 7,443 2,673
Disposal of subsidiary, net of cash disposed 789 2,032
Acquisition of subsidiary -107,483 -18,890
Acquisition of property, plant and equipment -33,196 -32,139
Acquisition of other investments -52,380 -16,186
Acquisition of intangible assets -3,035 -3,801
Net cash used in investing activities -179,992 -58,187
C. CASH FLOWS FROM FINANCING ACTIVITIES
Capital increase 0 54,900
Repurchase of own shares -112 0
Borrowings / Repayment of borrowings 174,471 -13,018
Dividends and premiums paid -5,910 -4,736
Net cash used in financing activities 168,449 37,146
Net increase/decrease in cash and cash equivalents 43 -497
Cash and cash equivalents at beginning of period 31 528
Cash and cash equivalents at end of period 74 31

140
2008
Statement of changes in equity of Gorenje, d.d.
Share
in TEUR
capital
Opening balance at 1 Jan 2008 58,546
Fair value reserve (investments)
Fair value reserve (land)
Fair value reserve (cash flow hedge)
Deferred tax liabilities
Total revenue and expenses recognised directly in equity
Net profit or loss for the period
Total revenue and expenses
Creation of reserve for own shares
Creation of statutory reserves
Dividend payout
Remuneration of the Supervisory Board under the resolution of the Shareholders' Meeting
Disposal of own shares
Reversal of reserve for own shares
Closing balance at 31 Dec 2008 58,546
Izkaz gibanja kapitala družbe Gorenje, d.d.
Share
in TEUR
capital
Opening balance at 1 Jan 2007 50,910
Fair value reserve (investments)
Fair value reserve (cash flow hedge)
Deferred tax liabilities
Total revenue and expenses recognised directly in equity
Net profit or loss for the period
Total revenue and expenses
Capital increase 7,636
Creation of statutory reserves
Dividend payout
Remuneration of the Supervisory Board under the resolution of the Shareholders' Meeting
Closing balance at 31 Dec 2007 58,546

141
Share premium
Legal and
statutory
reserves
Retained
earnings
Own shares
Fair value
reserve
Total
125,851 45,034 64,660 -27,693 8,387 274,785
-6,171 -6,171
7,454 7,454
-8,660 -8,660
-200 -200
-7,577 -7,577
11,972 11,972
11,972 -7,577 4,395
112 -112 -112 -112
1,186 -1,186 0
-5,781 -5,781
-129 -129
14,773 24,635 39,408
-24,635 24,635 0
140,624 21,697 94,059 -3,170 810 312,566
Share premium
Legal and
statutory
reserves
Retained
earnings
Own shares
Fair value
reserve
Total
78,587 43,713 57,724 -27,693 5,989 209,230
3,222 3,222
-219 -824 -1,043
-219 2,398 2,179
13,212 13,212
12,993 2,398 15,391
47,264 54,900
1,321 -1,321 0
-4,628 -4,628
-108 -108
125,851 45,034 64,660 -27,693 8,387 274,785
4.1.2.2 NOTES TO THE FINANCIAL STATEMENTS
1. Reporting entity
Gorenje, d.d. (the “Company”) is the controlling company in the Gorenje Group with its registered
office in Partizanska 12, 3503 Velenje in Slovenia. Company’s financial statements have been prepared
for the financial year ended 31 December 2008.
2. Basis for preparation
(a) Statement of compliance
The financial statements have been prepared in accordance with International Financial Reporting
Standards (IFRSs) as adopted in EU, and provisions of the Companies Act.
The financial statements were approved by the Management Board of Gorenje, d.d. on 3 April
2009.

142
2008
(b) Basis of measurement
The financial statements have been prepared on the historical cost basis, except for the following
items which are measured at fair value:
• derivative financial instruments,
• available-for-sale financial assets,
• investment property.
The methods used to measure fair values are discussed further in Note 4.
(c) Functional and presentation currency
These financial statements are presented in euro, which is the Company’s functional currency. All financial
information presented in euro has been rounded to the nearest thousand.
(d) Use of estimates and judgements
The preparation of financial statements in conformity with IFRSs requires management to make
judgements, estimates and assumptions that affect the application of accounting policies and the
reported amounts of assets, liabilities, income and expenses. Actual results may differ from these
estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimates are revised and in any future periods
affected.
In particular, information about significant areas of estimation uncertainty and critical judgements
in applying accounting policies that have the most significant effect on the amounts recognised in
the financial statements is included in the notes below:
Note 18, 19 – acquisition and disposal of companies
Note 28 – measurement of liabilities for termination benefits and jubilee benefits
Note 28 – provisions for litigations
Note 28 – provisions for warranties
Note 22 – valuation of financial instruments
3. Significant accounting policies
The accounting policies set out below have been applied consistently to all periods presented in
these financial statements, and have been applied consistently by the Company.
(a) Foreign currency
Foreign currency transactions
Transactions in foreign currencies are translated to EUR (functional currency of the Company) at
exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign
currencies at the reporting date are retranslated to EUR at the exchange rate at that date. The
foreign currency gain and loss on monetary items is the difference between amortised cost in the
functional currency at the beginning of the period, adjusted for effective interest and payments
during the period, and the amortised cost in foreign currency translated at the exchange rate at
the end of the period. Non-monetary assets and liabilities denominated in foreign currencies that
are measured at fair value are retranslated to EUR at the exchange rate at the date that the fair value
was determined. Foreign currency differences arising on retranslation are recognised in profit
or loss, except for differences arising on the retranslation of available-for-sale equity instruments,
a financial liability designated as a hedge of the net investment in a foreign operation, or qualifying
cash flow hedges, which are recognised directly in equity.

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(b) Financial instruments
(i) Non-derivative financial instruments
Non-derivative financial instruments comprise investments in equity and debt securities, trade receivables,
cash and cash equivalents, loans and borrowings, and trade and other payables.
Non-derivative financial instruments are recognised initially at fair value. Subsequent to initial recognition
non-derivative financial instruments are measured as described below.
Attributable transaction costs are recognised in profit or loss. The exception are investments in equity,
where the cost of financial instruments is increased by transaction costs.
A financial instrument is recognised if the Company becomes a party to the contractual provisions
of the instrument. Financial assets are derecognised if the Company’s contractual rights to the cash
flows from the financial assets expire or if the Company transfers the financial asset to another party
without retaining control or substantially all risks and rewards of the asset. Regular way purchases
and sales of financial assets are accounted for at trade date, i.e. the date that the Company commits
itself to purchase or sell the asset. Financial liabilities are derecognised if the Company’s obligations
specified in the contract expire or are discharged or cancelled.
Cash and cash equivalents comprise cash in hand and call deposits. Bank overdrafts that are repayable
on demand and form an integral part of the Company’s cash management are included as a
component of cash and cash equivalents for the purpose of the statement of cash flows.
Accounting for finance income and expense is discussed in note 3(o).
Available-for-sale financial assets
Company’s investments in equity securities and certain debt securities are classified as available-forsale
financial assets. Subsequent to initial recognition, they are measured at fair value and changes
therein, other than impairment losses (see note 3(i)(i)), and foreign exchange gains and losses on
available-for-sale monetary items (see note 3(b)(i)), are recognised directly in equity. When an investment
is derecognised, the cumulative gain or loss in equity is transferred to profit or loss.
Available-for-sale financial assets also include assets that could not be measured at fair value. The
shares of these companies are not listed. They are measured on the basis of available data on the
latest market transactions.
Other
Other non-derivative financial instruments are measured at amortised cost using the effective interest
method, less any impairment losses.
(ii) Derivative financial instruments
The Company holds derivative financial instruments to hedge its foreign currency and interest rate
risk exposures. Embedded derivatives are separated from the host contract and accounted for
separately if the economic characteristics and risks of the host contract and the embedded derivative
are not closely related, a separate instrument with the same terms as the embedded derivative
would meet the definition of a derivative, and the combined instrument is not measured at fair
value through profit or loss.
Derivatives are recognised initially at fair value; attributable transaction costs are recognised in
profit or loss when incurred. Subsequent to initial recognition, derivatives are measured at fair value,
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Cash flow hedges
Changes in the fair value of the derivative hedging instrument designated as a cash flow hedge are
recognised directly in equity.
If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated
or exercised, then hedge accounting is discontinued prospectively. The cumulative gain or
loss previously recognised in equity remains there until the forecast transaction occurs. When the
hedged item is a non-financial asset, the amount recognised in equity is transferred to the carrying
amount of the asset when it is recognised. In other cases the amount recognised in equity is transferred
to profit or loss in the same period that the hedged item affects profit or loss.
Economic hedges
Hedge accounting is not applied to derivative instruments that economically hedge monetary assets
and liabilities denominated in foreign currencies. Changes in the fair value of such derivatives
are recognised in profit or loss as part of foreign currency gains and losses.
(iii) Share capital
Repurchase of share capital (treasury shares)
When share capital recognised as equity is repurchased, the amount of the consideration paid,
which includes directly attributable costs, is net of any tax effects, and is recognised as a deduction
from equity. Repurchased shares are classified as treasury shares and are presented as a deduction
from total equity. When treasury shares are sold or reissued subsequently, the amount received is
recognised as an increase in equity, and the resulting surplus or deficit on the transaction is transferred
to retained earnings or reserves.
Dividends are recognised as a liability on the day of transaction.
(c) Subsidiaries
Investments in equities of subsidiaries are valued at cost. Costs that may be associated with the acquisition
of a subsidiary increase the cost of purchase of the investment in subsidiary. Profit participation
is recognised as income in the period when the Shareholders’ Meeting adopts the resolution
on the dividend payout.
(d) Property, plant and equipment
(i) Recognition and measurement
Property, plant and equipment are measured at cost less accumulated depreciation and accumulated
impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of
self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable
to bringing the asset to a working condition for its intended use, and the costs of dismantling
and removing the items and restoring the site on which they are located.
Borrowing costs related to the construction of property are recognised in profit or loss as incurred.
When parts of an item of property, plant and equipment have different useful lives, they are accounted
for as separate items of property, plant and equipment.
Fair value model or revaluation model is applied to land. Revaluation effects are recorded through
equity. Impairment loss of land whose value had previously been increased is directly charged
against revaluation surplus in equity, or else it is recognised in profit or loss. The revaluation of land

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is based on an independent appraisal report. The requirement for revaluation of land is reassessed
annually by the Company.
Gains and losses on disposal of an item of property, plant and equipment are determined by comparing
the proceeds from disposal with the carrying amount of property, plant and equipment and
are recognised net within “other operating income” in profit or loss. When the revalued asset is sold,
the amounts included in the revaluation reserve are transferred to retained earnings.
(ii) Reclassification to investment property
Property that is being constructed for future use as investment property is accounted for as property,
plant and equipment and measured at its cost until construction or development is complete,
at which time it is reclassified as investment property. Any gain or loss arising on re-measurement
to fair value is recognised in profit or loss.
(iii) Subsequent costs
The cost of replacing part of an item of property, plant and equipment is recognised in the carrying
amount of the item if it is probable that the future economic benefits embodied within the part will
flow to the Company and its cost can be measured reliably. The carrying amount of the replaced
part is derecognised. All other costs (such as the day-to-day servicing of property, plant and equipment)
are recognised in profit or loss as incurred.
(iv) Depreciation
Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives
of each part of an item of property, plant and equipment. Leased assets are depreciated over the
shorter of the lease term and their useful lives unless it is reasonably certain that the Company will
obtain ownership by the end of the lease term. Land is not depreciated.
The estimated useful lives for the current and comparative periods are as follows:
buildings
plant and equipment
computer equipment
transportation vehicles
office equipment
tools
34–50 years
5–20 years
2–5 years
5–14 years
5–10 years
5–8 years
Depreciation methods, useful lives and residual values are reviewed at each reporting date.
(e) Intangible assets
(i) Goodwill
Goodwill (negative goodwill) arises on the acquisition of subsidiaries, associates and joint ventures
and is recognised within the cost of purchase.
(ii) Research and development
Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical
knowledge and understanding, is recognised in profit or loss when incurred.
Development activities involve a plan or design for the production of new or substantially improved
products and processes. Development expenditure is capitalised only if development costs can be
measured reliably, the product or process is technically and commercially feasible, future economic
benefits are probable, and the Company intends to and has sufficient resources to complete development
and to use or sell the asset. The expenditure capitalised includes the cost of materials,
direct labour and overhead costs that are directly attributable to preparing the asset for its intend-

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ed use. Borrowing costs related to the development of qualifying assets are recognised in profit or
loss as incurred. Other development expenditure is recognised in profit or loss as incurred.
Capitalised development expenditure is measured at cost less accumulated amortisation and accumulated
impairment losses.
(iii) Other intangible assets
Other intangible assets that are acquired by the Company, which have finite useful lives, are measured
at cost less accumulated amortisation and accumulated impairment losses.
(iv) Subsequent expenditure
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied
in the specific asset to which it relates. All other expenditure, including expenditure on internally
generated goodwill and brands, is recognised in profit or loss as incurred.
(v) Amortisation
Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful lives
of intangible assets, from the date that they are available for use. The estimated useful lives for the
current and comparative periods are as follows:
patents and trademarks
capitalised development costs
10 years
10 years
(f) Investment property
Investment property is property held either to earn rental income or for capital appreciation or for
both, but not for sale in the ordinary course of business, use in the production or supply of goods
or services or for administrative purposes. Investment property is measured at fair value (see note
4(iii)) with any change therein recognised in profit or loss.
Property leased by the Company to subsidiaries for conducting activities is recorded within the
item of property, plant and equipment. The item of investment property includes property, whose
lease holders use more than 50% of available area.
When the use of a property changes such that it is reclassified as property, plant and equipment,
its fair value at the date of reclassification becomes its cost for subsequent accounting of depreciation.
(g) Leased assets
Leases in terms of which the Company assumes substantially all the risks and rewards of ownership
are classified as finance leases. Upon initial recognition the leased asset is measured at an amount
equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent
to initial recognition, the asset is accounted for in accordance with the accounting policy applicable
to that asset.
Other leases are operating leases. The leased assets are not recognised on the Company’s balance
sheet.
(h) Inventories
Inventories are measured at the lower of cost and net realisable value. The cost of inventories of
materials and merchandise is based on the weighted average price method and includes expenditure
incurred in acquiring the inventories, production or conversion costs and other costs incurred
in bringing them to their existing location and condition. In the case of manufactured inventories

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and work in progress, cost includes an appropriate share of production overheads based on normal
operating capacity.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated
costs of completion and selling expenses.
(i) Impairment
(i) Financial assets
A financial asset is assessed at each reporting date to determine whether there is any objective
evidence that it is impaired. A financial asset is considered to be impaired if objective evidence
indicates that one or more events have had a negative effect on the estimated future cash flows
of that asset.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the
difference between its carrying amount, and the present value of the estimated future cash flows
discounted at the original effective interest rate. An impairment loss in respect of an available-forsale
financial asset is calculated by reference to its fair value.
Significant financial assets are tested for impairment on an individual basis. The remaining financial
assets are assessed collectively in groups that share similar credit risk characteristics.
All impairment losses are recognised in profit or loss. Any cumulative loss in respect of an available-for-sale
financial asset recognised previously in equity is transferred to profit or loss.
An impairment loss is reversed if the reversal can be related objectively to an event occurring after
the impairment loss was recognised. For financial assets measured at amortised cost and
available-for-sale financial assets that are debt securities, the reversal is recognised in profit or
loss. For available-for-sale financial assets that are equity securities, the reversal is recognised directly
in equity.
(ii) Non-financial assets
The carrying amounts of the Company’s non-financial assets, other than investment property, inventories
and deferred tax assets, are reviewed at each reporting date to determine whether there
is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is
estimated. For goodwill and intangible assets that have indefinite lives or that are not yet available
for use, the recoverable amount is estimated annually at the reporting date.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its
fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current market assessments of the
time value of money and the risks specific to the asset. For the purpose of impairment testing, assets
are grouped together into the smallest group of assets that generates cash inflows from continuing
use that are largely independent of the cash inflows of other assets or groups of assets (the
“cash-generating unit”). The goodwill acquired in a business combination, for the purpose of impairment
testing, is allocated to cash-generating units that are expected to benefit from the synergies
of the combination.
An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds
its estimated recoverable amount. Impairment losses are recognised in profit or loss. Impairment
losses recognised in respect of cash-generating units are allocated first to reduce the carrying
amount of any goodwill allocated to the units and then to reduce the carrying amount of the
other assets in the unit (group of units) on a pro rata basis.
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment
losses recognised in prior periods are assessed at each reporting date for any indications that the
loss has decreased or no longer exists. An impairment loss is reversed if there has been a change

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in the estimates used to determine the recoverable amount. An impairment loss is reversed only to
the extent that the asset’s carrying amount does not exceed the carrying amount that would have
been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
(j) Employee benefits
Short-term benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed
as the related service is provided.
(k) Provisions
A provision is recognised if, as a result of a past event, the Company has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits
will be required to settle the obligation. Provisions are determined by discounting the expected
future cash flows at a pre-tax rate that reflects current market assessments of the time value of
money and the risks specific to the liability.
(i) Warranties
A provision for warranties is recognised when the underlying products or services are sold. The
provision is based on historical warranty data and a weighting of all possible outcomes against their
associated probabilities.
(ii) Site restoration
In accordance with the Company’s published environmental policy and applicable legal requirements,
a provision for site restoration in respect of contaminated land, and the related expense, is
recognised when the land is contaminated.
(iii) Onerous contracts
A provision for onerous contracts is recognised when the expected benefits to be derived by the
Company from a contract are lower than the unavoidable cost of meeting its obligations under the
contract. The provision is measured at the present value of the lower of the expected cost of terminating
the contract and the expected net cost of continuing with the contract. Before a provision is
established, the Company recognises any impairment loss on the assets associated with that contract.
(iv) Provisions for retirement bonuses and jubilee benefits
In accordance with the statutory requirements, the collective agreement, and the internal regulations,
the Company is to pay to its employees jubilee benefits and termination benefit upon retirement.
For these obligations, long-term provisions are created.
Provisions are determined by discounting, at the balance sheet date, the estimated future benefits
in respect of retirement bonuses and jubilee benefits. The obligation is calculated separately
for each employee by estimating the costs of retirement bonus and the costs of all expected jubilee
benefits until retirement. The selected discount rate is 7.75% p.a. and represents the rate of return
on long-term government bonds. The calculation is performed by a certified actuary using the
projected unit method.
( l ) R e v e n u e
(i) Revenue from the sale of products
Revenue from the sale of products, merchandise and materials is measured at the fair value of the
consideration received or receivable, net of returns and allowances, trade discounts and volume re-

149
bates. Revenue is recognised when the significant risks and rewards of ownership have been transferred
to the buyer, recovery of the consideration is probable, the associated costs and possible return
of goods can be estimated reliably, and there is no continuing management involvement with
the goods, and when the revenue can be measured reliably.
Transfers of risks and rewards vary depending on the individual terms of the contract of sale. For
sales of goods, transfer usually occurs when the product is received at the customer’s warehouse;
however, for some international shipments transfer occurs upon loading the goods onto the relevant
carrier.
(ii) Revenue from services
Revenue from services rendered is recognised in profit or loss in proportion to the stage of completion
of the transaction at the reporting date. The stage of completion is assessed by reference
to surveys of work performed.
(iii) Royalties (trademarks)
Royalties are recognised in profit or loss in accordance with terms of the relevant agreement; the
sale generated on individual geographical area is used as the basis.
(iv) Rental income
Rental income from investment property is recognised in profit or loss on a straight-line basis over
the term of the lease. Lease incentives granted are recognised as an integral part of the total rental
income, over the term of the lease.
(m) Government grants
All other types of government grants are recognised initially as deferred income when there is reasonable
assurance that they will be received and that the Company will comply with the conditions
associated with the grant. Grants that compensate the Company for expenses incurred are recognised
in profit or loss on a systematic basis in the same periods in which the expenses are recognised.
Grants that compensate the Company for the cost of an asset are recognised in profit or loss
on a systematic basis over the useful life of the asset.
(n) Finance income and expense
Finance income comprises interest income on funds invested (including available-for-sale financial
assets), dividend income, gains on the disposal of available-for-sale financial assets, and gains on
hedging instruments that are recognised in profit or loss. Interest income is recognised as it accrues
in profit or loss, using the effective interest method. Dividend income is recognised in profit or loss
on the date that the Company’s right to receive payment is established, which in the case of quoted
securities is the ex-dividend date.
Finance expense comprises interest expense on borrowings, foreign exchange losses, impairment
losses recognised on financial assets and trade receivables, and losses on hedging instruments that
are recognised in profit or loss. All borrowing costs are recognised in profit or loss using the effective
interest method.
(o) Income tax
Income tax expense comprises current and deferred tax. Income tax expense is recognised in
profit or loss except to the extent that it relates to items recognised directly in equity, in which
case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted
or substantively enacted at the reporting date, and any adjustment to tax payable in respect
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Deferred tax is recognised using the balance sheet method, providing for temporary differences
between the carrying amounts of assets and liabilities for financial reporting purposes and the
amounts used for taxation purposes. Deferred tax is not recognised for the following temporary
differences: the initial recognition of assets or liabilities in a transaction that is not a business combination
and that affects neither accounting nor taxable profit, and differences relating to investments
in subsidiaries and jointly controlled entities to the extent that it is probable that they will
not reverse in the foreseeable future. In addition, deferred tax is not recognised for taxable temporary
differences arising on the initial recognition of goodwill. Deferred tax is measured at the
tax rates that are expected to be applied to the temporary differences when they reverse, based
on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax
assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities
and assets, and they relate to income taxes levied by the same tax authority on the same taxable
entity, or on different tax entities, but they intend to settle current tax liabilities and assets on
a net basis or their tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will
be available against which the temporary difference can be utilised. Deferred tax assets are reviewed
at each reporting date and are reduced to the extent that it is no longer probable that the
related tax benefit will be realised.
( p ) E a r n i n g s p e r s h a r e
The Company presents basic earnings per share (EPS) data for its ordinary shares and diluted earnings
per share. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders
by the weighted average number of ordinary shares outstanding during the period.
(r) Comparative information
Comparative information has been mainly harmonised with the presentation of information in the
current year. Where required, adjustment of comparative data was carried out in order to comply
with the presentation of information in the current year.
(s) New standards and interpretations not yet adopted
A number of new standards, amendments to standards and interpretations are not yet effective for
the year ended 31 December 2008, and have not been applied in preparing these financial statements:
• IFRS 8 Operating Segments (effective as from 1 January 2009)
introduces the “management approach” to segment reporting, which becomes
mandatory for the financial statements for 2009.
Since segment reporting is only presented in the consolidated financial statements,
the standard shall have no impact on the Company’s financial statements.
• Revised IAS 23 Borrowing Costs (effective as from 1 January 2009)
removes the option to expense borrowing costs and requires that an entity capitalise
borrowing costs directly attributable to the acquisition, construction or
production of a qualifying asset as part of the cost of that asset.
The revised IAS 23 will become mandatory for the Company’s 2009 financial
statements and will constitute a change in accounting policy for the Company.
In accordance with the transitional provisions the Company will apply the
revised IAS 23 to qualifying assets for which capitalisation of borrowing costs
commences on or after the effective date.
• Amendments to IFRS 2 Share-based Payment (effective as from 1 January
2009)
The amendment clarifies the definition of vesting conditions and introduces the
concept of non-vesting conditions. Non-vesting conditions are to be reflected
in grant-date fair value and failure to meet non-vesting conditions will generally
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The amendments to IFRS 2 are not relevant to the Company’s operations as the
Company does not have any share-based compensation plans.
• Amendments to IAS 1 Presentation of Financial Statements (effective as
from 1 January 2009)
The amended standard requires information in financial statements to be aggregated
on the basis of shared characteristics and introduces a statement of
comprehensive income. Items of costs and expenses and components of other
comprehensive income (effectively combining the income statement and all
non-owner changes in equity in a single statement), or in two separate statements
(a separate income statement followed by a statement of comprehensive
income).
The Company will prepare two separate statements in the financial statements for 2009.
• Amendments to IAS 27 Consolidated and Separate Financial Statements
(effective as from 1 January 2009)
The amendments remove the definition of “cost method” currently set out in
IAS 27, and instead require all dividends from a subsidiary, jointly controlled entity
or associate to be recognised as income in the separate financial statements
of the investor when the right to receive the dividend is established.
Amendments to IAS 27 will have the impact on the Company’s financial statements
as the dividends will be recognised prior to the actual dividend payout.
• Amendments to IAS 32 Financial Instruments: Presentation, and IAS 1
Presentation of Financial Statements (effective as from 1 January 2009)
The amendments introduce an exemption to the principle otherwise applied
in IAS 32 for the classification of instruments as equity; the amendments allow
certain puttable instruments issued by an entity that would normally be classified
as liabilities to be classified as equity if, and only if, they meet certain conditions.
The amendments are not relevant to the Company’s financial statements as no
puttable instruments were issued in the past.
• IFRIC 13 Customer Loyalty Programmes (effective as from 1 July 2008)
It addresses the accounting by entities that participate in customer loyalty programmes
for their customers. It relates to customer loyalty programmes under
which the customer can redeem credits for awards such as free or discounted
goods or services.
IFRIC 13, which becomes mandatory for the Company’s 2009 financial statements,
is not expected to have any impact on the financial statements.
4. Determination of fair value
A number of the Company’s accounting policies and disclosures require the determination of fair
value, for both financial and non-financial assets and liabilities. Fair values have been determined
for measurement and / or disclosure purposes based on the following methods. When applicable,
further information about the assumptions made in determining fair values is disclosed in the
notes specific to that asset or liability.
(i) Property, plant and equipment
The fair value of property, plant and equipment is based on market values. The market value of
property is the estimated amount for which a property could be exchanged on the date of valuation
between a willing buyer and a willing seller in an arm’s length transaction after proper marketing
wherein the parties had each acted knowledgeably, prudently and without compulsion. The
items of plant, equipment, fixtures and fittings are valued at cost.
(ii) Intangible assets
The fair value of intangible assets is estimated as the present value of future cash flows expected to
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(iii) Investment property
An external, independent valuation company, having appropriate recognised professional qualifications
and recent experience in the location and category of property being valued, values the
Company’s investment property portfolio every six months. The fair values are based on market
values, being the estimated amount for which a property could be exchanged on the date of the
valuation between a willing buyer and a willing seller in an arm’s length transaction after proper
marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.
In the absence of current prices in an active market, the valuations are prepared by considering the
aggregate of the estimated cash flows expected to be received from renting out the property. A
yield that reflects the specific risks inherent in the net cash flows then is applied to the net annual
cash flows to arrive at the property valuation.
Valuations reflect, when appropriate: the type of tenants actually in occupation or responsible for
meeting lease commitments or likely to be in occupation after letting vacant accommodation, and
the market’s general perception of their creditworthiness; the allocation of maintenance and insurance
responsibilities between the Company and the lessee; and the remaining economic life of the
property. When rent reviews or lease renewals are pending with anticipated reversionary increases,
it is assumed that all notices, and when appropriate counter-notices, have been served validly
and within the appropriate time.
(iv) Trade receivables
The fair value of trade receivables is estimated as the present value of future cash flows, discounted
at the market rate of interest at the reporting date.
(v) Derivatives
The fair value of derivatives is estimated as the present value of future cash flows, taking into account
the market price of equivalent derivatives at the reporting date and by applying the market
interest rates for equivalent derivatives at the reporting date.
(vi) Non-derivative financial liabilities
Fair value, which is determined for disclosure purposes, is calculated based on the present value of
future principal and interest cash flows, discounted at the market rate of interest at the reporting
date. In respect of the liability component of convertible notes, the market rate of interest is determined
by reference to similar liabilities that do not have a conversion option. For finance leases the
market rate of interest is determined by reference to similar lease agreements.
5. Financial risk management
In respect of financial risk management, the internal financial policies comprising the bases for efficient
and systematic risk management were observed in 2008. The objectives of risk management
are:
• to achieve stability of operations and to reduce risk exposure to an acceptable
level,
• to increase the value of companies and the impact on their financial standing,
• to increase financial income and/or decrease financial expenses, and
• to nullify and/or decrease the effects of exceptionally damaging events.
In the Company, the following key types of financial risks have been defined:
Financial risks
Credit risk
Currency risk
Interest rate risk
Liquidity risk

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The exposure to each type of risk and the hedge measures to be applied are judged and implemented
on the basis of their effects on the cash flows. To hedge against financial risks in the course
of ordinary business activities, relevant hedging activities have been conducted in the area of operating,
investing and financing activities.
In 2008, in the light of the strained macroeconomic situation, more attention was paid to the credit
risk which includes all risks where the failure of a party (a buyer) to discharge contractual obligations
results in a decrease in economic benefits of the Company. The credit risk was managed by
application of the following sets of measures:
• insurance of a major portion of operating receivables against credit risk with
Slovenska izvozna družba – Prva kreditna zavarovalnica d.d.;
• additional collateralisation of riskier trade receivables by bank guarantees and
other security instruments;
• regular monitoring of operation and financial standing of new and existing business
partners, and limitation of exposure to certain business partners;
• implementation of mutual and chain compensation with buyers;
• systematic and active control of credit limits and collection of receivables.
With regard to the geographic diversification of its operations, the Company is strongly exposed to
the currency risk, which is the risk that the economic benefits of the Company may be decreased
due to changes in foreign exchange rates. Due to considerable macroeconomic changes and fluctuations
of (primarily) soft currencies in relation to the euro, the impact of currency risks has became
increasingly significant for the Company’s operations. When assessing currency risk exposure,
both cash flow exposure and balance sheet exposure have been considered. The currency
risk mainly results from business activities in the markets of Great Britain, Poland, Hungary, Croatia,
and the US dollar markets. A greater attention was paid to the natural hedging of currency risk and
the adaptation of business operations to ensure long-term decrease in currency fluctuation exposure
by matching or netting sales and purchases. Additional short-term hedging is carried out by
currency future contracts and short-term borrowings in currencies, to which the Company is exposed.
In the last few years, great attention was also paid to interest rate risk, which is the risk that the economic
benefits of the Company may be decreased due to changes in interest rates in the market. In
2008 the volume of hedging against interest rate risk was decreased over the previous year’s figure,
so that the share of fixed interest rates and derivatives hedging against interest rate risk was
equal to 49.9 percent of the loans portfolio of the Company. A lower level of fixed interest rates is a
consequence of higher indebtedness of the Company and the maturity of certain derivatives.
Liquidity risk is the risk that the Company will fail to meet commitments in stipulated period of time
due to the lack of available funds.
The financial liabilities of the Company in the amount of EUR 186 million mature in 2009. For this
reason the Company started, in the last quarter of 2008, to negotiate with the banks the rescheduling
of the existing financial liabilities and thus to decrease the risk of debt rescheduling. The liquidity
reserve in the amount of EUR 48.5 million, consisting of unused revolving lines of credit and cash
in banks of the Company, is used to ensure adequate short-term control of cash flows and to decrease
short-term liquidity risk.
Short-term liquidity risk of the Company is estimated as increased due to efficient cash management,
adequate available lines of credit 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 finance from business partners,
both buyers and sellers.
Long-term liquidity risk of the Company is estimated as moderate due to efficient operations, effective
cash management, sustainable ability to generate cash flows from operating activities, and
an adequate capital structure.

154
2008
Capital management
The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and
market confidence and to sustain future development of the Company. The Company monitors the
return on capital, which the Company defines, as one of the strategic ratios, as net profit for the
period attributable to equity holders of the Company divided by average shareholders’ equity, excluding
minority interests. The Company seeks to maintain a balance between the higher returns
that might be possible with higher levels of borrowings and the advantages and security afforded
by a sound capital position.
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.
Pursuant to the resolution of the Shareholders’ Meeting, an own share fund has been formed by the
Company amounting up to 10 % of the share capital. At 31 December 2008, the Company recorded
121,311 own shares, which is 0.8647 % of share capital.
At the 10th Shareholders’ Meeting of Gorenje, d.d. on 12 December 2006, the Management Board
of Gorenje, d.d. was authorised to increase, subject to the prior consent of the Supervisory Board
and not later than five years after the entry of the amendment of the Articles of Incorporation,
share capital by up to 15 percent of the amount of share capital entered in the register on the date
of adoption of the respective resolution, or by not more than SIT 1,830,000,000 (approved capital).
Capital should be increased by issuing up to 1,830,000 new ordinary, freely transferable, registered
no par value shares against cash contributions.
The procedure of the increase in share capital, the increase in the number of shares, and the amendment
of the Articles of Incorporation was completed by the Order of the District Court in Celje
no. Srg 2007/02253 of 7 November 2007. The respective Order relates to the entry of a change
in share capital from EUR 50,909,697.88 to EUR 58,546,152.56, a change in the number of shares
from 12,200,000 to 14,030,000, and the amendment of the Articles of Incorporation referring to
the above mentioned changes.
The Company has no special goals regarding employee shareowning and no share option programme.
There were no changes in the Company’s approach to capital management in 2008. 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 not resolutions adopted on conditionally increased capital.

155
6. Segment reporting
Segment information is presented within the consolidated financial statements.
Note 7 – Revenue TEUR 764,106
in TEUR 2008 2007
Revenue from the sale of products – domestic market 34,496 41,990
Revenue from the sale of products – foreign market 511,617 563,464
Revenue from the sale of merchandise – domestic market 42,473 33,128
Revenue from the sale of merchandise – foreign market 111,300 116,123
Revenue from the sale of services – domestic market 11,924 11,277
Revenue from the sale of services – foreign market 11,784 10,634
Revenue from the sale of materials and work in progress –
domestic market
15,750 20,432
Revenue from the sale of materials and work in progress –
foreign market
24,762 34,225
Total 764,106 831,273
Revenue from the sale to subsidiaries in the Gorenje Group are recorded at TEUR 427,209 i.e. denoting
a decrease of 12.07 percent over the previous year.
Note 8 – Other operating income TEUR 11,196
in TEUR 2008 2007
Income from subsidies, grants and compensations 159 448
Income from license fees 1,102 2,174
Rental income 1,581 1,519
Compensation for damage received 3,152 2,876
Reversal of long-term provisions 2,298 1,018
Revaluation of investment property to fair value 2,154 0
Gain on disposal of investment property 169 0
Gain on disposal of property, plant and equipment 417 1,199
Other operating income 164 2,236
Total 11,196 11,470
Income from license fees includes income from fees for the right to use the Gorenje trademark.
Compensations for damage received mostly refer to suppliers.
Rental income
in TEUR 2008 2007
Future minimum lease payments – up to 1 year (the Group companies) 1,462 1,406
Future minimum lease payments – up to 1 year (other entities) 119 113
Future minimum lease payments – from 2 to 5 years
(the Group companies)
5,975 5,624
Future minimum lease payments – from 2 to 5 years (other entities) 393 452
Total 7,949 7,595
Rental income mostly refers to real properties that are partly leased to subsidiaries and partly used
by the Company itself.
Note 9 – Cost of goods, materials and services TEUR 613,986
in TEUR 2008 2007
Cost of merchandise sold 157,028 162,078
Cost of materials 354,356 413,803
Cost of services 102,602 105,818
Total 613,986 681,699

156
2008
The cost of services includes cost of creation of provisions for warranties in the amount of TEUR
12,820 (in 2007: TEUR 10,819).
Note 10 – Employee benefits expense TEUR 110,305
in TEUR 2008 2007
Wages and salaries 77,106 73,673
Social security contributions 16,642 17,492
Creation of provisions for jubilee premiums and retirement bonuses 733 327
Other employee benefits expense 15,824 16,131
Total 110,305 107,623
Social security contributions include cost of additional voluntary pension insurance (collective) in
the amount of TEUR 3,087 (in 2007: TEUR 2,962).
Other employee benefits expense includes vacation bonuses, meal allowance, commuting allowance
and other work-related payments to employees.
Note 11 – Amortisation and depreciation expense TEUR 35,605
in TEUR 2008 2007
Amortisation of intangible assets 3,832 2,908
Depreciation of property, plant and equipment 31,773 31,083
Total 35,605 33,991
Note 12 – Other operating expenses
3,355 TEUR
in TEUR 2008 2007
Impairment of assets 73 43
Writedown of inventories to net realisable value 579 1,510
Other taxes and charges 1,320 1,133
Environmental levies 438 436
Scholarships 183 211
Other operating expenses 762 821
Total 3,355 4,154
Other taxes and charges include charges for the use of building plot, water charge, environmental
taxes and other mandatory taxes and charges. Other expenses mostly comprise compensations
paid for work accidents in the amount of TEUR 389 (in 2007: TEUR 436) and provisions for litigations
in the amount of TEUR 190 (in 2007: TEUR 206).
Note 13 – Net finance expense TEUR - 2,210
Finance income TEUR 24,973
in TEUR 2008 2007
Dividend income and income from other profit shares 7,443 2,673
Interest income on transactions with Group companies 2,378 1,207
Interest income on transactions with other entities 1,089 466
Income from interest rate swap transactions 2,048 741
Change in fair value of interest rate swap 327 124
Gain on disposal of companies 3,382 0
Gain on disposal of available-for-sale investments 4,066 5,823
Income from forward exchange transactions 1,285 397
Change in fair value of forward exchange transactions 2,821 0
Other finance income 134 198
Total 24,973 11,629

157
Other finance income mostly represents commissions charged for guarantees given at loans extended
to subsidiaries and other entities.
Finance expense TEUR 27,183
in TEUR 2008 2007
Interest expenses from transactions with Group companies 816 554
Interest expenses from transactions with other entities 15,514 10,468
Expense for net foreign exchange differences 4,047 1,691
Expenses from forward exchange transactions 1,267 1,523
Change in fair value of forward exchange transactions 0 1,104
Impairment loss on investments 4,809 0
Allowances for receivables 310 531
Other finance expense 420 683
Total 27,183 16,554
Due to the restricted activity of the market, the valuation model was applied for the impairment of
available-for-sale investments in the amount of TEUR 4,809.
Note 14 – Income tax expense TEUR - 88
Income tax expense is recognised based on current tax liabilities, deferred tax assets and deferred
tax liabilities.
in TEUR 2008 2007
Current tax expense 728 1,540
Deferred tax assets recognised in the income statement -816 659
Deferred tax liabilities recognised in the income statement 0 -72
Total -88 2,127
Presentation of effective income tax rates:
in TEUR 2008 2008 2007 2007
Profit excluding income tax 11,884 15,339
Income tax using the domestic tax rate 22.0 % 2,614 23.0 % 3,529
Non-deductible expenses 19.2 % 2,281 12.1 % 1,862
Tax exempt income -18.1 % -2,157 -9.9 % -1,517
Tax incentives -23.8 % -2,826 -11.4 % -1,747
Income tax expense -0.7 % -88 13.8 % 2,127
Note 15 – Intangible assets TEUR 17,440
in TEUR 2008 2007
Long-term deferred development costs 11,064 11,391
Long-term concessions, patents, licenses, trademarks and
similar rights
6,318 6,492
Intangible assets under construction 58 360
Total 17,440 18,243

158
2008
Changes in intangible assets in 2008
in TEUR
Long-term
deferred
development
costs
Long-term
concessions,
patents, licenses,
trademarks and
similar rights
Intangible
assets under
construction
Cost at 1 January 2008 18,242 14,164 360 32,766
Additions 3,035 3,035
Disposal, writedown -25 -25
Transfers 1,665 1,672 -3,337 0
Cost at 31 December 2008 19,907 15,811 58 35,776
Accumulated amortisation at 1
January 2008
6,851 7,672 14,523
Disposal, writedown -19 -19
Amortisation 1,992 1,840 3,832
Accumulated amortisation
at 31 December 2008
8,843 9,493 18,336
Carrying amount
at 1 January 2008
11,391 6,492 360 18,243
Carrying amount
at 31 December 2008
11,064 6,318 58 17,440
Total
Changes in intangible assets in 2007
in TEUR
Long-term
deferred
development
costs
Long-term
concessions,
patents, licenses,
trademarks and
similar rights
Intangible
assets under
construction
Cost at 1 January 2007 17,055 11,272 649 28,976
Additions 3,801 3,801
Disposal, writedown -11 -11
Transfers 1,187 2,903 -4,090 0
Cost at 31 December 2007 18,242 14,164 360 32,766
Accumulated amortisation
at 1 January 2007
5,557 6,069 11,626
Disposal, writedown -11 -11
Amortisation 1,294 1,614 2,908
Accumulated amortisation
at 31 December 2007
6,851 7,672 14,523
Carrying amount
at 1 January 2007
11,498 5,203 649 17,350
Carrying amount
at 31 December 2007
11,391 6,492 360 18,243
Total
Increase in long-term deferred development costs is attributable to the new generation of built-in
cooking appliances and a new generation of NG603 freestanding cooking appliances (TEUR 753),
the new generation of NGC600 and NGC540 refrigerators and freezers (TEUR 360) and to the
costs of development of a PG05 programmator for washers and dishwashers (TEUR 257).
As for long-term concessions, patents, licenses, trademarks and similar rights, additions refer to licences,
other rights and computer software (TEUR 1,639).

159
Note 16 – Property, plant and equipment TEUR 195,692
in TEUR 2008 2007
Land 20,118 12,954
Buildings 58,307 61,879
Manufacturing and other equipment 108,965 109,946
Property, plant and equipment under construction 8,302 4,613
Total 195,692 189,392
Movement of property, plant and equipment in 2008
in TEUR Land Buildings
Manu-facturing
plant and
equipment
PPE
under
construction
Cost 1 Jan 2008 12,954 150,833 396,522 4,613 564,922
Additions 33,196 33,196
Revaluation 7,455 7,455
Disposals, writedowns -291 -7,125 -9,365 -16,781
Transfers 2,078 27,429 -29,507 0
Transfer to investment property -69 -69
Cost 31 Dec 2008 20,118 145,717 414,586 8,302 588,723
Accumulated depreciation
1 Jan 2008
88,954 286,576 375,530
Disposals, writedowns -5,249 -9,068 -14,317
Transfer to investment property 45 45
Depreciation 3,660 28,113 31,773
Accumulated depreciation
31 Dec 2008
87,410 305,621 0 393,031
Carrying amount 1 Jan 2008 12,954 61,879 109,946 4,613 189,392
Carrying amount 31 Dec 2008 20,118 58,307 108,965 8,302 195,692
Total
Movement of property, plant and equipment in 2007
in TEUR Land Buildings
Manu-facturing
plant and
equipment
PPE
under
construction
Cost 1 Jan 2007 13,319 144,721 382,244 5,389 545,673
Additions 30,464 30,464
Disposals, writedowns -343 -92 -9,945 -10,380
Transfers 357 6,660 24,223 -31,240 0
Transfer to investment property -379 -456 -835
Cost 31 Dec 2007 12,954 150,833 396,522 4,613 564,922
Accumulated depreciation
1 Jan 2007
85,194 266,569 351,763
Disposals, writedowns -13 -7,303 -7,316
Depreciation 3,773 27,310 31,083
Accumulated depreciation
31 Dec 2007
88,954 286,576 375,530
Carrying amount 1 Jan 2007 13,319 59,527 115,675 5,389 193,910
Carrying amount 31 Dec 2007 12,954 61,879 109,946 4,613 189,392
Total
Buildings TEUR 58,307
Additions among buildings include the reconstruction of premises in Velenje (TEUR 571) and the rearrangement
management offices as well as other business premises (TEUR 467). As for the cooking
appliance programme, investments in the new generation of cooking appliances (integrated
cooking appliances) were implemented in the amount of TEUR 371. The Indop project in Šoštanj
was additionally upgraded in the amount of TEUR 300 and minor reconstructions of production
premises were carried out.

160
2008
Decrease in the value of property, plant and equipment refers to the sale of non-operating assets.
Borrowings are not secured by pledge of real properties. The loan secured by mortgage was repaid
on 3 January 2008 in the amount of 164 TEUR.
Manufacturing plant and equipment TEUR 108,965
Value of the equipment increases the value of the activated technological equipment and the hardware
and software equipment all of which was acquired in 2008 within the related annual upgrading.
As for the cooking appliances programme, investments in the new complex generation of integrated
and free-standing cooking appliances (600 mm wide) amounted to TEUR 16,584; as for the
washer-dryer programme TEUR 643 were invested into logistics and production equipment; as for
the refrigerator-freezer programme, investments in the new generation of 540 mm and 600 mm
wide appliances amounted to TEUR 1,164. The increase within the MEKOM programme includes
mostly tools for semi-finished products used in the new generation of integrated cooking appliances
and refrigerator-freezer appliances (540 mm) amounting to TEUR 783. Investments within the
information technology and telecommunications amounted to TEUR 363 thousand and refer mostly
to computer equipment.
Decrease applies to the equipment sold, as well as to the disposal of useless equipment.
Property, plant and equipment under construction TEUR 8,302
The major portion of property, plant and equipment under construction refers to the new warehouse
for household appliances amounting to TEUR 4,073.
Advances for property, plant and equipment
Advances for property, plant and equipment mostly apply to the import of the logistics
equipment.
Company’s land was revalued in 2008. The valuation was performed on the basis of its fair market
value determined by an independent certified appraiser of real estate. The effect of revaluation in
2008 amounted to TEUR 7,455. The conditions for impairment of assets were not identified in the
reporting period.
Note 17 – Investment property TEUR 4,462
in TEUR 2008 2007
Land 3,752 1,945
Buildings 710 753
Total 4,462 2,698
Investment property includes land and buildings acquired for resale or increase in investment. Investment
property is stated using fair value model. The valuation of investment property by an independent
certified appraiser of real property was carried out in 2008.
Movement of investment property
in TEUR 2008 2007
Opening balance 1 Jan 2,698 614
Additions 249 1,675
Revaluation 2,154 0
Disposals -753 -426
Transfer from property, plant and equipment 114 835
Closing balance 4,462 2,698

161
Note 18 – Investments in subsidiaries TEUR 258,830
in TEUR
Share in
equity of the
company
Investment at
31 Dec 2008
Investment at
31 Dec 2007
Gorenje I.P.C., d.o.o., Velenje 100.00 % 377 377
LINEA SP, d.o.o., Velenje 100.00 % 125 125
Gorenje GTI, d.o.o., Velenje 100.00 % 8,795 8,795
Gorenje Gostinstvo, d.o.o., Velenje 100.00 % 5,958 5,958
Gorenje Orodjarna, d.o.o., Velenje 100.00 % 3,038 3,038
Indop, d.o.o., Šoštanj 100.00 % 1,000 1,000
Gorenje Notranja oprema, d.o.o., Velenje 99.89 % 18,215 18,105
Gorenje Tiki, d.o.o., Ljubljana 99.979 % 7,001 5,738
Energygor, d.o.o.,Velenje 100.00 % 58 58
Kemis, d.o.o., Radomlje 100.00 % 1,353 1,353
Surovina, d.d., Maribor 51.00 % 12,036 11,727
ERICo, d.o.o., Velenje 51.00 % 256 256
ZEOS, d.o.o., Ljubljana 51.00 % 242 242
Gorenje Zagreb, d.o.o., Croatia 100.00 % 12,604 12,604
Gorenje Skopje, d.o.o., Macedonia 100.00 % 538 538
Gorenje Beteiligungs GmbH, Austria 100.00 % 31,257 21,658
Gorenje Imobilia, d.o.o., Serbia 100.00 % 0 1,486
Gorenje Tiki, d.o.o., Serbia 82.04 % 7,947 6,449
Mora Moravia, a.s., The Czech Republic 100.00 % 8,750 8,750
Gorenje Adria nekretnine, d.o.o., Croatia 100.00 % 0 410
STB Nekretnine, d.o.o., Serbia 1.61 % 50 50
Istrabenz Gorenje energetski sistemi, d.o.o., Ljubljana 49.344 % 5,755 5,145
Gorenje Projekt d.o.o., Ljubljana 100% 87 0
Publicus, d.o.o. Ljubljana 51% 2,000 0
Gorenje design studio, d.o.o., Velenje 52% 260 0
ATAG Europe B V, The Netherlands 100% 131,038 0
Gorenje Holding B.V., The Netherlands 100% 90 0
Total 258,830 113,862
Changes in investments in subsidiaries in 2008
in TEUR
Naložbe v odvisne družbe
Balance at 1 Jan 2007 89,679
Increase 18,890
Transfer 5,621
Decrease -328
Balance at 31 Dec 2007 113,862
Increase 107,483
Acquisition of subsidiary Atag based on sale of own shares 39,409
Establishment of Gorenje Holding 72
Decrease -1,996
Balance at 31 Dec 2008 258,830
Increase of investments in subsidiaries of the Gorenje group is attributable to:
• capital insrease in the subsidiary Gorenje Notranja oprema, d.o.o. (TEUR 110),
• capital increase in the subsidiary Gorenje Tiki, d.o.o. (TEUR 1,263),
• capital increase in the subisidiary Surovina, d.d. (TEUR 308),
• capital increase in the subsidiary Gorenje Beteiligungs GmbH, Austria (TEUR
9,599),
• capital increase in the subsidiary Gorenje Tiki, d.o.o., Serbia (TEUR 1,498),
• capital increase in the subsidiary Istrabenz Gorenje energetski sistemi, d.o.o.
(TEUR 610),
• founding of the company Gorenje projekt, d.o.o. (TEUR 87),
• acquisition of the 51 % share in PUBLICUS, d.o.o. (TEUR 2,000),

162
2008
• founding of the company Gorenje design studio, d.o.o. (TEUR 260),
• acquisition of the 100 % share in the company ATAG Evrope BV together with
related costs (TEUR 131,038),
• founding of the company Gorenje Holding B.V. (TEUR 90),
• founding of the company Gores, d.o.o. (TEUR 100).
Decrease of investments in subsidiaries of the Gorenje Group refers to Gorenje Adria nekretnine,
d.o.o., which was sold for TEUR 705 and to Gorenje Imobilia, d.o.o. which was sold for TEUR 1,953.
In 2008 the Company founded the subsidiary Gores, d.o.o. and thereupon sold it for TEUR 2,720.
The sale of subsidiaries generated a profit of TEUR 3,382 that is recorded among Gain on disposal
of available-for-sale investments.
Note 19 – Other non-current investments TEUR 7,444
Other non-current investments refer to long-term loans in the amount of TEUR 1,494 (2007: TEUR
2,031), other non-current investments in the amount of TEUR 5,950 (2007: TEUR 10,176) relating to
the disposal of non-operating assets, and receivables relating to the sale of subsidiaries.
Changes in non-current investments
in TEUR 2008 2007
Opening balance at 1 Jan 10,176 5,651
Increase 5,269 4,553
Decrease 0 -28
Transfer of non-current available for sale investments to current
investments
-9,495 0
Closing balance 5,950 10,176
As for non-current investments, the Company is not exposed to major financial risks since most of
investments are made in subsidiaries. Long-term loans extended to others are secured by bills.
Movement of long-term loans
in TEUR 2008 2007
Opening balance at 1 January 2,031 623
Increase 15,000 4,031
Decrease -136 -1,213
Transfer to current investments -15,401 -1,410
Closing balance 1,494 2,031
Long-term loans by maturity
in TEUR 2008 2007
Maturity of 1 to 2 years 426 402
Maturity of 2 to 3 years 452 426
Maturity of 3 to 4 years 418 452
Maturity of 4 to 5 years 0 420
Maturity in excess of 5 years 198 331
Total 1,494 2,031
Long-term loans bear interest at the nominal interest rate ranging from 5.783 % to 6.00 %.
The loans with the maturity in excess of 5 years represent housing loans under the Housing Act of
1991.
Short-term loans extended to specific groups of persons
No short-term loans were granted to members of the Management Board, Supervisory Board, and
internal owners.

163
Note 20 – Deferred tax assets and liabilities TEUR 5,273
Tax assets – tax
Deferred tax assets Deferred tax liabilities
in TEUR
liabilities
2008 2007 2008 2007 2008 2007
PPE 66 25 1,640 0 -1,574 25
Investments 1,060 42 447 1,886 613 -1,844
Receivables 373 454 0 0 373 454
Inventories 76 87 0 0 76 87
Liabilities arising from
litigations
12 35 0 0 12 35
Provisions for termination pays 2,343 2,453 0 0 2,343 2,453
Provisions for warranties 1,343 1,360 0 0 1,343 1,360
Total 5,273 4,456 2,087 1,886 3,186 2,570
Tax assets – Tax
in TEUR
liabilities
Through profit or loss Through equity
2008 2007 2008 2007 2008 2007
PPE -1,574 25 41 98 -1,640 0
Investments 613 -1,844 1,017 -58 1,440 -824
Receivables 373 454 -81 29 0 0
Inventories 76 87 -11 10 0 0
Liabilities arising from
litigations
12 35 -23 24 0 0
Provisions for termination pays 2,343 2,453 -110 -71 0 -219
Provisions for warranties 1,343 1,360 -17 -619 0 0
Total 3,186 2,570 816 -587 -200 -1,043
Note 21 – Inventories TEUR 105,948
in TEUR 2008 2007
Materials 54,820 48,250
Work in progress 10,146 10,609
Finished products 28,492 26,034
Merchandise 7,219 6,175
Advances 5,271 2,801
Total 105,948 93,869
Note 22 – Current investments TEUR 86,817
in TEUR 2008 2007
Available for sale financial assets 18,353 16,016
Short-term loans 62,818 9,909
Interest receivable 462 223
Current receivables - dividend payout to other entities 0 2
Other current investments 5,184 1,973
Total 86,817 28,123
Movement of available-for-sale shares and interests
in TEUR 2008 2007
Opening balance at 1 Jan 16,016 5,701
Increase 5,869 8,105
Decrease -4,332 -6,033
Transfer from non-current investments 9,495 0
Value adjustment -8,695 8,243
Closing balance 18,353 16,016

164
2008
The shares were transferred by the Company from non-current investments to current investments
in order to uniformly present available-for-sale financial instruments. A change in the fair value of
available-for-sale investments in the amount of TEUR 8,695 refers to the revaluation of shares as
at 31 December 2008. The fair value reserve in shareholders’ equity was reversed in the amount of
TEUR 3,886 and the remaining amount of TEUR 4,809 was recorded under financial expenses.
Short-term loans
in TEUR 2008 2007
Current portion of long-term loans to the Gorenje Group companies 16,437 1,359
Short-term loans to the Gorenje Group companies 29,521 7,066
Current portion of long-term loans to other entities 402 52
Short-term loans to others 15,888 1,155
Short-term deposits with banks 570 277
Total 62,818 9,909
Short-term loans bear interest at the nominal interest rate ranging from 2.73 % to 7.5 %. No shortterm
loan is exposed to major financial risk as most of the loans granted relates to subsidiaries.
Short-term loans to other companies are secured by bills and mortgages.
Short-term loans extended to special groups of persons
No short-term loans were extended to members of the Management Board, Supervisory Board,
and internal owners.
Note 23 – Trade receivables TEUR 172,327
in TEUR 2008 2007
Trade receivables - Gorenje Group companies 108,146 130,841
Trade receivables - other entities 64,181 69,830
Total 172,327 200,671
Trade receivables due from Group companies
in TEUR 2008 2007
Trade receivables due from domestic customers 5,446 22,704
Trade receivables due from foreign customers 102,700 108,137
Total 108,146 130,841

165
Trade receivables – Group companies located in Slovenia
in TEUR
Company 2008 2007
Gorenje Tiki, d.o.o., Ljubljana 232 1,612
Gorenje Gostinstvo, d.o.o., Velenje 46 80
Gorenje Notranja oprema, d.o.o., Velenje 146 945
Gorenje I.P.C., d.o.o.,Velenje 1,497 1,951
Gorenje GTI, d.o.o., Velenje 2,608 16,619
LINEA SP, d.o.o., Velenje 28 28
Gorenje Orodjarna, d.o.o., Velenje 50 292
Indop, d.o.o., Šoštanj 588 879
Kemis, d.o.o., Radomlje 3 15
Energygor, d.o.o., Ljubljana 0 1
GEN–I, d.o.o., Krško 1 2
ZEOS, d.o.o., Ljubljana 6 40
ERICo, d.o.o., Velenje -1 1
Surovina, d.d., Maribor 213 239
Gorenje design studio, d.o.o., Velenje 25 0
PUBLICUS, d.o.o., Ljubljana 4 0
Total 5,446 22,704
Trade receivables – Group companies located abroad
in TEUR
Company 2008 2007
Gorenje Slovakia s.r.o., Slovakia 2,946 3,373
Gorenje spol. s.r.o., Czech Republic 1,998 380
Gorenje Skopje, d.o.o., Macedonia 1,137 1,263
Gorenje Zagreb, d.o.o., Croatia 15,236 23,539
Gorenje Commerce, d.o.o., Bosnia and Herzegovina 4,258 3,852
Gorenje Podgorica, d.o.o., Montenegro 3,875 2,511
Gorenje Budapest Kft., Hungary 3,852 4,826
Gorenje Polska Sp.z.o.o., Poland 9,316 10,530
Gorenje Bulgaria EOOD, Bulgaria 2,174 1,551
Gorenje d.o.o., Serbia 7,275 1,997
Gorenje Belux S.a.r.l., Belgium 980 961
Kemis Imobilia, d.o.o., Serbia 0 6
Gorenje Vertriebs GmbH, Germany 13,425 11,503
Gorenje Koerting Italia S.r.l., Italy 2,669 5,108
Gorenje Austria Handels GmbH, Austria 1,376 1,592
Gorenje Beteiligungs GmbH, Austria 2,245 6
Gorenje Skandinavien A/S, Denmark 13,190 14,285
Gorenje France S.A.S., France 8,366 10,016
Gorenje UK Ltd., Great Britain 1,871 2,575
Gorenje Adria Nekretnine, d.o.o., Croatia 0 1
Gorenje Imobilia, d.o.o., Serbia 0 6
Mora Moravia, a.s., Czech Republic 187 258
Gorenje aparati za domaćinstvo, d.o.o., Serbia 5,297 4,849
Gorenje Espana, s.l., Spain 1,116 1,823
Gorenje Tiki, d.o.o., Stara Pazova 17 7
Gorenje Istanbul Ltd., Turkey 1,364 660
Gorenje Gulf FZE, United Arab Emirates 273 410
Gorenje Invest, d.o.o., Serbia 13 0
GEN-I , Kft, Hungary 1 0
ATAG Nederland BV, The Netherlands 321 0
Exchange differences -2,078 249
Total 102,700 108,137

166
2008
Note 24 – Other current assets TEUR 19,533
in TEUR 2008 2007
Advance payments for services 3,644 2,398
Other current assets 13,310 8,778
Current tax receivable 708 0
Short-term deferred costs and expenses 1,871 1,647
Total 19,533 12,823
Advance payments for services include predominantly advances for coal transport in the amount
of TEUR 2,969 (2007: TEUR 1,207).
Other current assets include current receivables for input tax paid in the Republic of Slovenia in the
amount of TEUR 5,707 (2007: TEUR 5,262), VAT receivables from foreign countries in the amount
of TEUR 1,749 TEUR (2007: TEUR 744), receivables not yet charged in the amount of TEUR 2,138
and referring to unfinished projects within the Indop programme (2007: TEUR 1,450).
Short-term deferred costs include costs of services accounted for, but not yet provided.
Note 25 – Cash and cash equivalents TEUR 74
in TEUR 2008 2007
Cash in hand and readily liquid securities 3 2
Bank balances 71 29
Total 74 31
Note 26 – Equity TEUR 312,566
In accordance with the resolution of the 10th Shareholders’ Meeting of Gorenje, d.d. on 12 December
2006 and the Court Order of 7 November 2007 on the change in share capital, the share capital
was increased by 1,830,000 ordinary, freely transferable, no par value shares. At 31 December
2008, the share capital of Gorenje, d.d. amounted to EUR 58,546,152.56 (at 31 December 2007:
EUR 58,546,152.56) and was divided into 14,030,000 ordinary, freely transferable, no par value
shares.
Capital surplus (share premium) in the amount of TEUR 140,624 includes paid-in surplus in excess
of par value of shares in the amount of TEUR 47,264, surplus in excess of book value of disposed
own shares in the amount of TEUR 15,313 (1,070,000 own shares were disposed in 2008 in order
to purchase the Atag company), general equity revaluation adjustment in the amount of TEUR
78,048, and other effects of the transition to IFRS.
Legal and statutory reserves in the amount of TEUR 21,697 include legal reserves in the amount of
TEUR 12,895 (31 December 2007: TEUR 12,895), reserves for own shares in the amount of TEUR
3,170 (31 December 2007: TEUR 27,693), and statutory reserves in the amount of TEUR 5,632 (31
December 2007: TEUR 4,446).
Retained earnings in the amount of TEUR 94,059 comprise - pursuant to the Companies Act – other
revenue reserves amounting to TEUR 58,996 (2007: TEUR 49,101) and formed on the basis of
resolutions adopted by the Company’s Management Board and Supervisory Board in connection
with the distribution of the profit for the period, as well as resolutions adopted by the Shareholders’
Meeting in connection with the use of the accumulated profit, and the accumulated profit established
at TEUR 35,063.
Fair value reserve in the amount of TEUR 810 results from revaluation of available-for-sale investments
to their fair value in the amount of TEUR – 6,171 and revaluation of cash flow hedges in the
amount of TEUR -8,660 and the creation of fair value reserve relating to land in the amount of
TEUR 7,454. The change in the amount of TEUR - 200 refers to the creation of deferred tax liabilities
(available-for-sale investments) and to revaluation of land.

167
Own shares in the amount of TEUR - 3,170 are stated as a deductible item of equity and are measured
at acquisition cost.
No. of shares 1 Jan 2008 Purchase Sale 31 Dec 2008
Repurchased own shares 1,183,342 7,969 -1,070,000 121,311
Earnings per share amounted to EUR 0.89 in 2008 (2007: EUR 1.18).
To calculate the EPS ratio, the net profit or loss and the weighted average number of ordinary
shares in the period are taken into account:
in TEUR 2008 2007
Net profit or loss 11,972 13,212
Weighted average number of ordinary shares 13,469,497 11,169,158
Basic / Diluted earnings per share (in EUR) 0.89 1.18
No dilutive instruments have been issued by the Company, therefore basic earnings per share is
equal to diluted earnings per share.
Dividends: In 2008, the dividend per share amounted to EUR 0.45. In 2007, dividend per share
amounted to EUR 0.42 (2006: EUR 0.42).
Note 27 – Establishment of the accumulated profit and proposal on its appropriation in accordance
with the provisions of the Companies Act
In accordance with the Companies Act and the bylaws of Gorenje, d.d., the Management Board decided
to use part of the 2008 net profit for:
• creation of reserves for own shares (EUR 111,820.58) for the purpose of acquiring
7,969 own shares,
• creation of statutory reserves (EUR 1,186,028.37),
• creation of other revenue reserves (EUR 5,337,127.67).
The proposed creation of reserves for own shares, for statutory reserves and other revenue reserves
was approved by the Supervisory Board and adequately disclosed in the Company’s financial
statements.
The formation of accumulated profit for 2008 is presented in the following chart:
in EUR
Net profit for the period 11,972,104.28
+ retained earnings 5,091,065.65
+ decrease in reserves for own shares 24,634,770.07
- creation of reserves for own shares -111,820.58
- creation of statutory reserves -1,186,028.37
- creation of other revenue reserves under the resolution of the
Management Board and the Supervisory Board
-5,337,127.67
= accumulated profit 35,062,963.38
The Management Board and the Supervisory Board of the Company propose to the Shareholders’
Meeting to use the 2008 accumulated profit in the amount of EUR 35,062,963.38 for the following
purposes:
• EUR 28,050,370.70 of accumulated profit shall be used for the creation of other
revenue reserves,
• the remaining amount of the accumulated profit stated at EUR 7,012,592.68 remains
unallocated.
Dividends for 2008 shall not be paid out as the proposed use of the accumulated profit indicates a
strengthening of the equity and provision of own funds during the present financial crisis.

168
2008
Note 28 – Provisions TEUR 24,187
in TEUR 2008 2007
Provisions for warranties 11,773 13,553
Provisions for retirement benefits and jubilee premiums 11,143 10,827
Other provisions 1,271 1,832
Total 24,187 26,212
Movement of provisions in 2008
Balance
in TEUR
1 Jan
2008 Use Reversal Creation
Balance 31
Dec 2008
Provisions for warranties 13,553 -12,632 -1,968 12,820 11,773
Provisions for retirement benefits and
jubilee premiums
10,827 -417 0 733 11,143
Other provisions 1,832 -420 -331 190 1,271
Total 26,212 -13,469 -2,299 13,743 24,187
Movement of provisions in 2007
Balance
1 Jan
2007 Use Reversal Creation
Balance 31
Dec 2007
in TEUR
Rezervacije za prodajne garancije 14,041 -10,182 -1,018 10,712 13,553
Rezervacije za odpravnine in pokojnine 10,972 -472 327 10,827
Druge rezervacije 1,648 -23 207 1,832
Skupaj 26,661 -10,677 -1,018 11,246 26,212
Long-term provisions for warranties were created on the basis of estimated costs of warranties
made from known data on the quality level of products and the costs of warranties. Provisions for
retirement benefits and jubilee premiums are based on the actuarial calculation of estimated future
payments of retirement benefits and jubilee premiums, which was made as at 31 December 2008.
In 2008, the newly formed provisions are due to new recruitments and the method applied in the
actuarial calculation; they were charged against the profit for the period in the amount of TEUR 733
(2007: TEUR 327). Other provisions refer to payments that shall be made for compensation claims
in respect of the actions brought against the Company.
Note 29 – Non-current financial liabilities TEUR 195,716
in TEUR 2008 2007
Financial liabilities to banks 257,624 156,252
Financial liabilities to other entities 12 12
Current portion of non-current liabilities -62,008 -45,746
Non-current finance lease 88 108
Total 195,716 110,626
Non-current financial liabilities are denominated in EUR. As at 31 December 2008, long-term borrowings
bear interest at the variable interest rate with basic points ranging between 60 and 125.

169
Maturity of non-current financial liabilities
in TEUR 2008 2007
1 to 2 years 62,919 37,039
2 to 3 years 66,882 25,560
3 to 4 years 40,039 27,418
4 to 5 years 21,109 11,489
In excess of 5 years 4,679 9,012
Total 195,628 110,518
Collateralisations
in TEUR 2008 2007
Bills 194,189 108,009
Pari-Passu Clause, Negative Pledge Clause 181,376 101,509
Financial obligations (ratios) 177,597 80,765
The major portion of borrowings was collateralised by blank bills, financial obligations, as well
as the Pari-Passu and Negative Pledge Clauses, as stipulated by the individual contracts. Several
types of collaterals are applied simultaneously in some loan contracts.
Note 30 – Current financial liabilities TEUR 162,727
in TEUR 2008 2007
Long-term borrowings from banks 71,029 4,031
Long-term borrowings from related entities 18,132 12,008
Current interest payable 840 212
Current dividends payable 176 152
Current portion of non-current financial liabilities 62,008 45,746
Other current liabilities 10,542 1,072
Total 162,727 63,221
Other current liabilities relate to hedging of derivatives and liabilities referring to the participation
in Gorenje Holding not yet paid.
Collateralisation
in TEUR 2008 2007
Bills 131,965 48,526
Pari-Passu Clause, Negative Pledge Clause 80,554 47,731
Financial obligations (ratios) 62,003 26,060
Mortgage 0 0
The major portion of borrowings was collateralised by blank bills and the Pari-Passu and Negative
Pledge Clauses, as stipulated by the individual contracts, and partly also by financial obligations.
Several types of collaterals are applied simultaneously in some loan contracts.
Current borrowings
Currency
Amount in
currency
Amount in TEUR
Interest rate
from
to
EUR 148,941 148,941 3.50 % 6.845 %
USD 3,100 2,227 1.14 % 1.39%
Total 151,168

170
2008
Note 31 – Trade payables TEUR 160,692
in TEUR 2008 2007
Payables to suppliers in the Gorenje Group 22,778 23,015
Payables to other suppliers 137,914 154,250
Total 160,692 177,265
Payables to suppliers in the Gorenje Group
In TEUR 2008 2007
Payables to domestic suppliers 9,543 10,264
Payables to foreign suppliers 13,235 12,751
Total 22,778 23,015
Payables to domestic suppliers in the Gorenje Group
in TEUR
Company 2008 2007
Gorenje Tiki, d.o.o., Ljubljana 247 466
Gorenje Gostinstvo, d.o.o., Velenje 197 234
Gorenje Notranja oprema, d.o.o, Velenje 32 130
Gorenje I.P.C., d.o.o., Velenje 4,813 5,277
Gorenje GTI, d.o.o., Velenje 2,574 2,679
LINEA SP, d.o.o., Velenje 5 0
Gorenje Orodjarna, d.o.o., Velenje 730 961
Surovina, d.d., Maribor 5 5
ERICo, d.o.o., Velenje 0 4
Kemis, d.o.o., Radomlje 41 4
GEN-I, d.o.o., Krško 349 504
Indop, d.o.o, Šoštanj 81 0
Gorenje design studio, d.o.o., Velenje 469 0
Total 9,543 10,264
Payables to foreign suppliers in the Gorenje Group
in TEUR
Company 2008 2007
Gorenje Polska Sp.z.o.o., Poland 72 70
Gorenje spol. s.r.o., Czech Republic 42 -34
Gorenje Podgorica, d.o.o., Montenegro 0 27
Gorenje Budapest Kft., Hungary 28 46
Gorenje, d.o.o., Serbia 61 87
Gorenje Belux S.a.r.l., Belgium 15 21
Gorenje Vertriebs GmbH, German 541 463
Gorenje Koerting Italia S.r.l., Italy 273 -1
Gorenje Beteiligungs GmbH, Austria 323 571
Gorenje Skandinavien A/S, Denmark 2,249 231
Gorenje France S.A.S., France 124 137
Gorenje UK Ltd., Great Britain 16 91
Gorenje Romania S.R.L., Romania 220 148
Mora Moravia, a.s., Czech Republic 9,025 9,903
Gorenje Slovakia s.r.o., Slovakia 1 0
Gorenje aparati za domaćinstvo, d.o.o., Serbia 143 985
Gorenje Espana, S.L., Spain -20 -22
Gorenje Gulf FZE, United Arab Emirates 109 43
Gorenje Istanbul Ltd., Turkey 7 0
ATAG BV, The Netherlands 6 0
Exchange differences 0 -15
Total 13,235 12,751

171
Payables to other suppliers
in TEUR 2008 2007
Payables to domestic suppliers 55,635 59,251
Payables to foreign suppliers 82,279 94,999
Total 137,914 154,250
Note 32 – Other current liabilities TEUR 15,865
in TEUR 2008 2007
Payables to employees 6,952 7,107
Payables to state institutions 1,028 1,140
Current liabilities from advances 724 2,545
Other current liabilities 609 830
Short-term accrued costs and expenses 6,552 10,495
Total 15,865 22,117
As at the balance sheet date payables to employees include:
in TEUR 2008 2007
Wages and salaries and continued pay 3,498 3,505
Contributions on wages and salaries 1,328 1,404
Taxes on wages and salaries 656 705
Other emoluments from employment 162 185
Deductions from wages and salaries 1,260 1,282
Other payables 48 26
Total 6,952 7,107
Advances refer mostly to finished products (TEUR 588) and to the Indop projects amounting to
TEUR 104 (2007: TEUR 2,417).
Short-term accrued costs and expenses were formed for accrued costs of services in the amount of
TEUR 4,373 (2007: TEUR 7,658), accrued interest expenses on borrowings in the amount of TEUR
2,018 (2007: TEUR 1,790), accrued expenses relating to bonus payments in 2008 in the amount of
TEUR 162 (2007: TEUR 677).
Note 33 – Contingent liabilities
The Company keeps separate records of contingent liabilities arising from guarantees granted to
financial institutions for liabilities recorded by subsidiaries in the amount of TEUR 48,729 (2007:
TEUR 63,427) and by third entities in the amount of TEUR 1,645 (2007: TEUR 2,269). In addition,
the Company separately discloses liabilities relating to performance bonds in the amount of TEUR
20,727 (2007: TEUR 12,052).
Note 34 – Financial instruments
Credit risk
Knjigovodska vrednost finančnih sredstev predstavlja največjo izpostavljenost kreditnemu tveganju.
Največja izpostavljenost kreditnemu tveganju na dan poročanja je bila:
in TEUR 2008 2007
Available-for-sale financial assets 18,353 26,192
Loans 64,312 11,940
Trade and other receivables excluding income tax receivables 191,152 212,593
Cash and cash equivalents 74 31
Interest rate swaps used for hedging: assets 327 1,973
Forward exchange contracts used for hedging: assets 4,793 0
Total 279,011 252,729

172
2008
The maximum exposure to credit risk for trade receivables at the reporting date by geographic region
was:
in TEUR 2008 2007
EU countries 65,061 82,285
East European countries 90,417 95,049
Other regions 16,849 23,337
Total 172,327 200,671
The maximum credit risk exposure of trade receivables at the reporting date - by type of
customer:
in TEUR 2008 2007
Wholesale customers 172,050 200,352
Other customers 277 319
Total 172,327 200,671
Gross amount Allowance Gross amount Allowance
in TEUR 2008 2008 2007 2007
Not past due 145,958 172,594
Past due 1 to 45 days 13,381 18,710
Past due 46 to 90 days 7,312 4,905
Past due 91 to 180 days 1,619 2,738
Past due more than 180 days 7,997 -3,940 5,723 -3,999
Total 176,267 -3,940 204,670 -3,999
Movement in allowances for trade receivables:
in TEUR 2008 2007
Opening balance 1 Jan 3,999 4,720
Impairment loss 310 507
Payments -113 -1,136
Other -256 -92
Closing balance 31 Dec 3,940 3,999
Liquidity risk
Shown below is the maturity of financial liabilities:
31 December 2008
in TEUR
Carrying
amount
Contractual
cash flows
1 year or
less
1 – 2
years
2 – 5
years
Non-derivative financial liabilities
Bank borrowings 346,783 369,922 161,092 69,321 139,509
Other financial liabilities
Trade and other payables 160,692 160,692 160,692
Total 507,475 530,614 321,784 69,321 139,509
Derivative financial liabilities
Interest rate swaps -10,078 -10,078 985 -11,013 -50
Forward exchange contracts
used for hedging
4,793 4,793 4,793
Outflow
Inflow 4,793 4,793 4,793
Other forwards exchange
contracts
Outflow
Inflow
Total -5,285 -5,285 5,778 -11,013 -50
More than
5 year

173
31 December 2007
in TEUR
Carrying
amount
Contractual
cash flows
1 year or
less
1 – 2
years
2 – 5
years
More than
5 year
Non-derivative financial liabilities
Bank borrowings 160,283 180,411 57,604 42,375 70,921 9,511
Other financial liabilities 12,492 12,989 12,989
Trade and other payables 199,382 199,382 199,382
Total 372,157 392,782 269,975 42,375 70,921 9,511
Derivative financial instruments
Interest rate swaps 1,973 4,194 1,948 1,641 605 0
Forward exchange contracts
used for hedging
-1,072 -1,072 -1,072
Outflow -1,272 -1,272 -1,272
Inflow 200 200 200
Other forwards exchange
contracts
0
Outflow 0
Inflow 0
Total 901 3,122 876 1,641 605 0
The following table shows the periods in which the cash flows from derivatives, which are cash flow
hedge, are expected to occur and their impact on profit and loss.
2008
in TEUR
Carrying
amount
Expected cash
flows
1 year or
less
1 – 5 years
Interest rate swaps
Assets (Liabilities) -10,078 -10,078 985 -11,063
Forward exchange contracts
Assets (Liabilities) 4,793 4,793 4,793
Total -5,285 -5,285 5,778 -11,063
More than
5 year
2007
in TEUR
Carrying
amount
Expected cash
flows
1 year or
less
1 – 5 years
Interest rate swaps
Assets (Liabilities) 1,973 4,194 1,948 2,246
Forward exchange contracts
Assets (Liabilities) -1,072 -1,072 -1,072
Total 901 3,122 876 2,246
More than
5 year
Currency risk
The Company’s exposure to foreign currency risk:
31 December 2008
in TEUR EUR HRK DKK PLN USD HUF Other
Trade receivables 128,226 14,725 13,191 6,501 3,461 2,172 2,953
Financial liabilities
(borrowings)
-344,556 -2,227
Operating liabilities -159,097 -4 -3,763 -8 -47
Balance sheet exposure -375,427 14,725 13,187 6,501 -2,529 2,164 2,906
Forward exchange contracts 0 -16,391 -17,985 15,420 -1,999
Net exposure -375,427 -1,666 13,187 -11,484 12,891 2,164 907

174
2008
31 December 2007
in TEUR EUR HRK DKK PLN USD HUF Other
Trade receivables 135,405 23,311 14,281 10,214 7,684 4,423 5,353
Financial liabilities
(borrowings)
-171,520 -1,255
Operating liabilities -178,163 0 -53 0 1,417 -46 -420
Balance sheet exposure -214,278 23,311 14,228 10,214 7,846 4,377 4,933
Forward exchange contracts -6,145 0 -15,926 8,962 -5,943 -3,931
Net exposure -214,278 17,166 14,228 -5,712 16,808 -1,566 1,002
The following significant exchange rates were applied during the year:
Average rate
Reporting date spot rate
2008 2007 2008 2007
HRK 7.224 7.338 7.356 7.331
DKK 7.455 7.451 7.451 7.458
PLN 3.515 3.783 4.154 3.594
USD 1.470 1.371 1.392 1.472
HUF 251.737 251.256 266.700 253.730
Sensitivity analysis
A 5 percent increase of the euro against the stated currencies as at 31 December would have increased
(decreased) net profit or loss by the amounts shown below. This analysis assumes that all
other variables, in particular interest rates, remain unchanged. The analysis has been performed on
the same basis as for 2007.
31 December 2008
in TEUR
Net profit or loss
HRK 83
DKK -659
PLN 574
USD -645
HUF -108
Other currencies -45
31 December 2007
in TEUR
Net profit or loss
HRK -858
DKK -711
PLN 286
USD -840
HUF 78
Other currencies -50
A 5 percent decrease of the euro against the stated currencies as at 31 December would have had
the equal yet opposite effect, provided that all other variables remain unchanged.

175
Interest rate risk
The Company’s exposure to interest rate risk:
in TEUR 2008 2007
Fixed rate financial instruments
Financial assets 2,267
Financial liabilities 22,632 12,008
Variable rate financial instruments
Financial liabilities 324,151 181,951
Fair value sensitivity analysis for fixed rate instruments
The Company does not record any fixed rate financial instruments at fair value through profit or
loss and derivatives designated as fair value hedge. Therefore a change in the interest rate at the
reporting date would not have any impact on net profit or loss.
Fair value sensitivity analysis for variable rate instruments
A change in the interest rate by 100 basis points at the reporting date would have increased (decreased)
net profit or loss by the amounts shown below. This analysis assumes that all other variables,
in particular foreign currency rates, remain unchanged. The analysis has been performed on
the same basis as for 2007.
Net profit or loss
in TEUR
Increase
Decrease
by 100 bp
by 100 bp
31 December 2008
Variable rate instruments -2,674 2,674
Interest rate swaps 749 -749
Cash flow sensitivity -1,925 1,925
31 December 2007
Variable rate instruments -1,467 1,467
Interest rate swaps 1,298 -1,298
Cash flow sensitivity -169 169
Note 35 – Fair value
The fair value and the carrying amount of assets and liabilities
in TEUR
Carrying
amount
Fair value
Carrying
amount
Fair value
2008 2008 2007 2007
Available-for-sale investments 18,353 18,353 26,192 26,192
Non-current loans 1,494 1,494 2,031 2,031
Current loans 62,818 62,818 9,909 9,909
Derivatives -5,285 -5,285 901 901
Trade receivables 172,327 172,327 200,671 200,671
Other current assets 18,825 18,825 13,048 13,048
Cash and cash equivalents 74 74 31 31
Non-current financial liabilities -195,716 -195,716 -110,626 -110,626
Current financial liabilities -152,257 -152,257 -62,149 -62,149
Trade payables -160,691 -160,691 -177,265 -177,265
Other payables -15,866 -15,866 -22,117 -22,117
Total -255,924 -255,924 -119,374 -119,374
Available-for-sale investments are measured at fair value based on market prices.

176
2008
Forward exchange transactions
At 31 December 2008, forward exchange transactions were recorded by Gorenje, d.d. in the total
amount of TEUR 51,795. Forward exchange transactions were used in 2008 to hedge against
changes in the currency parity between EUR/PLN, EUR/AUD, EUR/USD, EUR/HRK, EUR/HUF,
EUR/GBP and EUR/RSD. At the year-end 2008, the hedge of the following currency parities was
shown: EUR/PLN, EUR/USD, EUR/HRK and EUR/GBP. The maturity of forward exchange transactions
is a short-term maturity (up to one year).
The basis for determination of fair value of financial instruments is provided on the Reuters portal.
The decisive values are the values of the opposite forward exchange transactions with the same
maturities effective at the reporting date. The fair value of forward exchange transactions at the
balance sheet date is the difference between the value of actually concluded forward exchange
transactions and the value of the opposite forward exchange transactions at the balance sheet
date, taking into consideration the same maturities of separate forward exchange transactions.
The total fair value of forward exchange transactions amounted to TEUR 4,793 at 31 December
2008 and was recorded under other current investments.
Interest rate swap transactions
The amount of hedged items recorded by Gorenje, d.d., for which interest rate swap transactions
were concluded, totalled TEUR 150,429 at 31 December 2008. Interest rate swap transactions are
used to hedge against changes in the variable interest rate EURIBOR. The maturity of transactions
is a long-term maturity; they mature successively until 31 January 2012.
The basis for determination of fair value of financial instruments is provided on the Reuters portal;
the decisive values are the values of interest rate swap transactions with the same maturities effective
at the balance sheet.
The fair value of interest rate swap transactions at the balance sheet date is the discounted difference
between the interest cash flow under the interest rate swap contracts and the interest cash
flow under the interest rate swap contracts of equal value at the balance sheet date.
The fair value of interest rate swap transactions totalled TEUR -10,078 at 31 December 2008 and
was recorded under other current assets in the amount of TEUR 327 and under financial liabilities
in the amount of TEUR 10,405.
A portion of hedged items under the interest rate swap contracts and the forward exchange contracts,
which relate to hedged items in the balance sheet, were recorded in equity under fair value
reserve.
Loans and borrowings are measured on the basis of recalculation using the effective interest rates,
which do not differ essentially from the stipulated interest rates. Therefore, the stipulated interest
rate is used in calculations.
Current trade receivables are not discounted due to short-term maturity. However, impairment
loss on fair value is considered.
Note 36 – Related party transactions
The related party transactions recorded by the Company were consummated based on the sale/
purchase contracts concluded with related parties on terms equivalent to those prevailing in the
arm’s-length transactions. The individual transactions with related parties were disclosed under the
respective balance sheet disclosures.

177
Information on groups of persons
In 2008, the following gross emoluments were paid to the below groups of persons in Gorenje,
d.d.:
Gross emoluments in 2008
in TEUR
Management
Board
Supervisory
Board
Employees under individual
employment contract
- salaries 1,255 5,944
- incentive bonuses 306 129 877
- other emoluments 106 425
- attendance fees 75
- other refund of expenses 1
Total 1,667 205 7,246
Net emoluments in 2008
in TEUR
Management
Board
Supervisory
Board
Employees under individual
employment contract
- salaries 572 3,030
- incentive bonuses 145 100 432
- other emoluments 104 383
- attendance fees 58
- other refund of expenses 1
Total 821 159 3,845
Gross emoluments in 2007
in TEUR
Management
Board
Supervisory
Board
Employees under individual
employment contract
- salaries 798 5,645
- incentive bonuses 263 108 896
- other emoluments 89 470
- attendance fees 60
- other refund of expenses 2
Total 1,150 170 7,011
Net emoluments in 2007
in TEUR
Management
Board
Supervisory
Board
Employees under individual
employment contract
- salaries 342 2,818
- incentive bonuses 123 84 447
- other emoluments 85 437
- attendance fees 47
- other refund of expenses 1
Total 550 132 3,702

178
2008
In accordance with the Securities Market Act, the total payments, reimbursements, and other benefits
of the members of the Management Board are given below:
Gross emoluments in 2008
in TEUR
Franc
Bobinac
Franc
Košec
Branko
Apat
Uroš
Marolt
Mirjana
Dimc
Perko
Philip
Alexander
Sluiter
Drago
Bahun
- salaries 239 201 194 177 184 66 194
- incentive bonuses 79 63 19 19 63 63
- other emoluments 24 18 10 24 17 13
Total 342 282 223 220 264 66 270
Net emoluments in 2008
in TEUR
Franc
Bobinac
Franc
Košec
Branko
Apat
Uroš
Marolt
Mirjana
Dimc
Perko
Philip
Alexander
Sluiter
Drago
Bahun
- salaries 103 88 90 73 81 50 87
- incentive bonuses 37 30 9 9 30 30
- other emoluments 23 18 9 24 17 13
Total 163 136 108 106 128 50 130
Gross emoluments in 2007
in TEUR
Franc
Bobinac
Franc
Košec
Branko
Apat
Uroš
Marolt
Mirjana
Dimc
Perko
Drago
Bahun
- salaries 209 176 42 39 161 171
- incentive bonuses 77 62 62 62
- other emoluments 26 20 1 5 19 18
Total 312 258 43 44 242 251
Net emoluments in 2007
in TEUR
Franc
Bobinac
Franc
Košec
Branko
Apat
Uroš
Marolt
Mirjana
Dimc
Perko
Drago
Bahun
- salaries 88 75 20 16 69 74
- incentive bonuses 36 29 29 29
- other emoluments 25 19 1 5 18 17
Total 149 123 21 21 116 120
No non-current and current loans were extended by the Company to the members of the Management
Board, Supervisory Board and internal owners.
Note 37 – Events after the balance sheet date
Considering the circumstances of the economical crisis faced by the Gorenje Group already in the
last months of 2008, the management prepared several business scenarios for 2009 to facilitate a
quick and efficient response to the turbulent business conditions.
In the first two months of 2009, the Company faced a 20 to 25-percent drop in the operations, the
downward trend remaining similar to the one in the last few months of 2008. The majority of the
manufacturers operating in the business segment recorded a loss in the last Quarterly of 2008.
Therefore numerous activities were launched in December 2008 whose purpose is to neutralize the
negative impact of the extremely low sales. They are directed to all areas of the Company’s operations
and all business processes, relating to

179
• the cost management of raw materials (inventory optimisation, favourable term
purchase of raw materials, further development of supply sources from Asia in
other dollar-based supply markets and South-Eastern European countries, further
cost-cutting measures to be adopted in association with the cost of materials);
• production process (flexibility in the adaptation of the production to the level
of orders);
• purchase of goods (adjustment of purchases to the current requirements);
• sales (sales promotion, intensifying of customer contacts, search for new business
opportunities, simplification);
• costs of logistics (maximizing the utilization of transportation means);
• investments (approval of solely the most urgent investments whose purpose is
new product development);
• marketing area (cost-cutting in all markets, limiting the costs to costs that are directly
linked to sales promotion);
• costs of services (decrease in the management and general administration
costs, adaptation of costs to the range of sales, strengthening the control over
the cost base);
• assurance of positive cash flows (raising of new long-term loans, receivables optimisation,
assuring short-term liquidity);
• a decrease in current assets (management of inventories and receivables) and
• labour cost optimisation (implementation of a 36-hour weekly working time, a
10-percent salary decrease, organisational restructuring and restructuring of
business processes).
Note 38 – Transactions with the audit firm
In accordance with Article 57 of the Companies Act, an audit was carried out by the auditing company
KPMG Slovenija, d.o.o., in the period between 19 January and 2 February 2009 and an auditor’s
opinion was issued on 6 April 2009. In 2008, the fee for audit services amounted to TEUR 147
(in 2007: TEUR 178); TEUR 140 (2007: TEUR 140) of accrued expenses were recorded for the audit
of the Annual Report.

180
2008
4.1.2.3 AUDITOR'S REPORT

181

182
2008
GORENJE GROUP COMPANIES
HOUSEHOLD APPLIANCES DIVISION
Gorenje, gospodinjski aparati, d.d.
President of Management Board:
Franc BOBINAC
Partizanska 12
3503 Velenje
Phone: +386 3 899 10 00
Fax: +386 3 899 28 00
E-mail: info@gorenje.si
http://www.gorenje.com
Mora Moravia s r.o.
Management Board: Vitezslav RUŽIČKA,
Matija ZUPANC, Simon KUMER
Nádražni 50
783 66 Hlubočky – Mariánské Údolí
Czech Republic
Phone: +420 585 161 111
Fax: +420 585 351 220
E-mail: adm.centrum@mora.cz
http://www.moramoravia.cz
Gorenje aparati za domaćinstvo, d.o.o.,
Valjevo
Managing Director: Mirko MEŽA
Bulevar palih boraca 91/92 godine, br. 5
14000 Valjevo
Serbia
Phone: +381 142 95 900
Fax: +381 142 95 901
E-mail: mirko.meza@gorenje.com
Gorenje I.P.C., invalidsko podjetniški
center, d.o.o.
Managing Director: Mirko ROŽANC
Partizanska 12
3503 Velenje
Phone: +386 3 899 16 47
Fax: +386 3 899 26 35
E-mail: ipc@gorenje.si
Gorenje Orodjarna, d.o.o.
Managing Director: dr. Blaž NARDIN
Partizanska 12 b
3503 Velenje
Phone: +386 3 899 23 64
Fax: +386 3 899 26 31
E-mail: prodaja@gorenje-orodjarna.si
http://www.gorenje-orodjarna.si
Indop, d.o.o.
Managing Director: Boris JURKOŠEK
Primorska cesta 6a
3325 Šoštanj
Phone: +386 3 899 7331
Fax: +386 3 899 2427
E-mail: boris.jurkosek@gorenje.si
Gorenje Tiki, d.o.o.
Managing Director: Branko APAT
Magistrova 1
1521 Ljubljana
Phone: +386 1 5005 600 / 602
Fax: +386 1 5005 700
E-mail: info@gorenjetiki.si
http://www.gorenjetiki.si
Gorenje Tiki, društvo za proizvodnju
električnih aparata za domačinstvo,
d.o.o., Stara Pazova
Managing Director: Branko APAT
Golubinački put b. b.
22300 Stara Pazova
Serbia
Phone: +381 22 366 100
Fax: +381 22 316 773
E-mail: info@gorenjetiki.si
http://www.gorenjetiki.si
Gorenje Holding B.V.
Managing Directors: Franc BOBINAC
and Janez ŽIVKO
Impact 83
6921 RZ Duiven
Postbus 1033
6920 BA Duiven
Netherlands
Phone: +31 26 88 21 508
Fax: +31 26 88 21 506
E-mail: j.zivko@homeproducts.nl

183
ATAG Europe BV
Managing Directors: Philip Alexander
SLUITER and Berend Johannes
HOFENK
Impact 83
6921 RZ Duiven
Postbus 153
6920 AD Duiven
Netherlands
Phone: +31 26 882 1513
Fax: +31 26 882 1506
http://www.atag.nl
ATAG Financiral Services BV
Managing Directors: Philip Alexander
SLUITER and Berend Johannes
HOFENK
Impact 83
6921 RZ Duiven
Postbus 153
6920 AD Duiven
Netherlands
Phone: +31 26 882 1513
Fax: +31 26 882 1506
http://www.atag.nl
Intell Properties BV
Managing Directors: Philip Alexander
SLUITER and Berend Johannes
HOFENK
Impact 83
6921 RZ Duiven
Postbus 153
6920 AD Duiven
Netherlands
Phone: +31 26 882 1513
Fax: +31 26 882 1506
http://www.atag.nl
ATAG Nederland BV
Managing Directors: Philip Alexander
SLUITER and Berend Johannes
HOFENK
Impact 83
6921 RZ Duiven
Postbus 153
6920 AD Duiven
Netherlands
Phone: +31 26 882 1513
Fax: +31 26 882 1506
http://www.atag.nl
ATAG Financiële Diensten BV
Managing Directors: Philip Alexander
SLUITER and Berend Johannes
HOFENK
Impact 83
6921 RZ Duiven
Postbus 153
6920 AD Duiven
Netherlands
Phone: +31 26 882 1513
Fax: +31 26 882 1506
http://www.atag.nl
ATAG Special Products BV
Managing Directors: Philip Alexander
SLUITER and Berend Johannes
HOFENK
Impact 83
6921 RZ Duiven
Postbus 153
6920 AD Duiven
Netherlands
Phone: +31 26 882 1513
Fax: +31 26 882 1506
http://www.atag.nl
ATAG België BV
Managing Directors: Jackie HAECK
and Guy De MEY
Industriezone Erpe-Mere
Keerstraat 1
B-9420 Erpe-Mere
Belgium
Phone: +32 53 806 208
Fax: +32 53 806 057
http://www.atag.nl
HOME INTERIOR DIVISION
Gorenje Notranja oprema, d.o.o.
Managing Director: Uroš MAROLT
Partizanska 12
3320 Velenje
Phone: +386 3 898 51 10
Fax: +386 3 898 5113
E-mail: info@gorenje-no.si
http://www.gorenje-no.si
Gorenje - kuchyně spol. s r.o.
Managing Director: Viktor FAKTOR
Č.p. 207 Višňová
262 61 Višňová
Czech Republic
Phone: +420 318 690 107
Fax: +420 318 690 121
E-mail: info@g-k.cz
http://www.g-k.cz

184
2008
Gorenje kuhinje, d.o.o.
Managing Director: Elena TIRLECKAYA
Kolektorna 30
02600 Kiev
Ukraine
Phone: +386 44 564 63 95
Fax: +386 44 564 63 95
E-mail: info@gorenje-kitchen.com
http://www.gorenje.ua
ECOLOGY, ENERGY AND SERVICES DIVISION
Gorenje GTI, trgovina, inženiring,
d.o.o.
Managing Director: Cita ŠPITAL-MEH
Partizanska 12
3320 Velenje
Phone: +386 3 899 13 94
Fax: +386 3 899 26 06
E-mail: gti@gorenje.si
http://www.gorenje.com
http://www.gorenje-gti.si
Linea, stanovanjsko podjetje, d.o.o.,
Velenje
Managing Director: Franjo GJERKEŠ
Prešernova 8
3320 Velenje
Phone: +386 3 586 94 35
Fax: +386 3 586 94 36
E-mail: info@linea.si
http://www.linea.si
ENERGYGOR, ravnanje z odpadki,
trgovina in posredništvo, d.o.o.
Managing Director: Marijan PENŠEK
Partizanska 12
3320 Velenje
Phone: +386 3 899 15 32
Fax: +386 3 899 25 05
ZEOS, ravnanje z električno in
elektronsko opremo, d.o.o.
Managing Director: Emil ŠEHIČ
Brnčičeva ulica 39
1000 Ljubljana
Phone: +386 1 366 86 04; +386 1 366
85 41
Fax: +386 1 366 85 82
E-mail: info@zeos.si
http://www.zeos.si
Gorenje Gostinstvo, d.o.o.
Managing Director: Saša OPREŠNIK
Partizanska 12
3320 Velenje
Phone: +386 3 899 11 95
Fax: +386 3 899 26 67
E-mail: gorenje.gostinstvo@siol.net
http://www.gorenjegostinstvo.eu
http://www.hotelpaka.com
http://www.gorenjegostinstvo.si
ERICo VELENJE, inštitut za ekološke
raziskave, d.o.o.
Managing Director: Marko MAVEC
Koroška cesta 58
3320 Velenje
Phone: +386 3 898 19 30; +386 3 898
19 34
Fax: +386 3 898 19 42
E-mail: erico@erico.si
http://www.erico.si
Gorenje Projekt, inženiring, d.o.o.
Managing Director: Bogdan TOPIČ
Brnčičeva ulica 39
1231 Ljubljana
Phone: +386 41 612 279
Gorenje design studio, družba za
oblikovanje, d.o.o.
Managing Director: Jurij GIACOMELLI
Partizanska 12
3320 Velenje
Phone: +386 3 899 29 83
Fax: +386 3 899 25 20
E-mail: jurij.giacomelli@gorenje.com

185
KEMIS, kemični izdelki, predelava in
odstranjevanje odpadkov, d.o.o.
Managing Director: Emil NANUT
Kajuhova 4, Preserje pri Radomljah
1235 Radomlje
Phone: +386 1 729 50 30
Fax: +386 1 729 50 40
E-mail: info@kemis.si
http://www.kemis.si
KEMIS-Termoclean, d.o.o.,
poduzeće za industrijska čišćenja i
gospodarenje otpadom
Managing Director: Zoran MATIĆ
Kanalski put 12
10000 Zagreb
Croatia
Phone: +385 1 24 06 303
Fax: +385 1 24 04 734
E-mail: info@kemis-termoclean.hr
http://www.kemis-termoclean.hr
KEMIS - BH, d.o.o.
Managing Director: Maid HADŽIMUJIĆ
Sarajevske b.b.
75300 Lukavac
Bosnia and Herzegovina
Phone: +387 35 556 988
Fax: +387 35 556 988
E-mail: info@kemis.ba
http://www.kemis.ba
KEMIS, skupljanje, prerada i
uništavanje opasnog otpadaka, d.o.o.,
Srbija
Managing Director: Franc LIPOVŠEK
II. Željezničko naselje 2 b
21400 Bačka Palanka
Serbia
Phone: +381 21 6045 141
Fax: +381 21 6045 141
E-mail: office@kemis.co.yu
http://www.kemis.co.yu
SUROVINA, družba za predelavo
odpadkov, d.d.
Managing Director: Marko FON
Ulica Vita Kraigherja 5
2001 Maribor
Phone: +386 2 250 70 10
Fax: +386 2 237 23 04
E-mail: surovina@surovina.si
http://www.surovina.si
SIROVINA, d.o.o., produzeće za
sakupljanje, preradu i promet
sekundardnih sirovina
Managing Director: Jelica BERBER
II. Željezničko naselje 2 b
21400 Bačka Palanka
Serbia
Phone: +381 21 6045 959
Fax: +381 21 6041 470
E-mail: adsir@verat.net
http://www.surovina.si/podjetja.html
PUBLICUS, gospodarjenje z odpadki,
trgovina, leasing, prevoz, d.o.o.,
Ljubljana
Managing Director: Bogomir ERŽEN
Vodovodna 97
1000 Ljubljana
Phone: +386 1 561 17 10
Fax: +386 1 561 16 67
E-mail: info@publicus.si
http://www.publicus.si
Euro Lumi & Surovina Sh.P.K.
Managing Director: Amir PIRA
Občina Vitina
38258 Požaranje
Kosovo
KEMIS - SRS, d.o.o.
Managing Director: Mladen ĐEKIĆ
Srpskih sokolova br. 1
74000 Doboj
Bosnia and Herzegovina
Phone: +387 53 236 791
Fax: +387 53 236 791
E-mail: kemis.srs@kemis.ba

186
2008
ISTRABENZ GORENJE, energetske
storitve, d.o.o.
President of the Management Board:
dr. Robert GOLOB
Tumova ulica 5
5000 Nova Gorica
Phone: +386 5 33 11 974
Fax: +386 5 3311 979
E-mail: info.energetskisistemi@
istrabenz.si
http://www.istrabenz-es.si
Istrabenz investicijski inženiring,
proizvodnja električne energije, d.o.o.
Managing Director: dr. Robert GOLOB
Tumova ulica 5
5000 Nova Gorica
Phone: +386 5 33 11 974
Fax: +386 5 33 11 979
Intrade energija, d.o.o., Sarajevo
Managing Director: Emir AVDIĆ
Ulica Zmaja od Bosne 44
71000 Sarajevo
Bosnia and Herzegovina
Phone: +387 33 657 205
Fax: +387 33 657 206
E-mail: intrade@isinter.net
http://www.intrade.co.ba/intradeenergija
Istrabenz Gorenje inženiring, storitve
in trgovina, d.o.o.
Managing Director: Gorazd JAMNIK
Dunajska cesta 63
1000 Ljubljana
Phone: +386 1 23 48 197
Fax: +386 1 23 48 192
GEN-I, trgovanje in prodaja električne
energije, d.o.o.
President of the Management Board:
dr. Robert GOLOB
Deputy President: Martin NOVŠAK
Member of Management Board: dr.
Igor KOPRIVNIKAR
Member of Management Board: dr.
Dejan PARAVAN
Cesta 4. julija 42
8270 Krško
Phone: +386 7 48 81 840
Fax: +386 7 48 81 841
E-mail: info@gen-i.si
http://www.gen-i.si
GEN-I, d.o.o., Beograd
Managing Director: dr. Igor
KOPRIVNIKAR
Bulevar Zorana Đinđića 12 d
11070 Belgrade
Serbia
Phone: +386 1 58 96 400
Fax: +386 1 58 96 439
E-mail: info@gen-i.si
http://www.gen-i.si
GEN-I Skopje, d.o.o.
Managing Director: dr. Igor
KOPRIVNIKAR
Stiv Naumov Str. 22/8
1000 Skopje
Macedonia
Phone: +386 1 58 96 400
Fax: +386 1 58 96 439
E-mail: info@gen-i.si
http://www.gen-i.si
GEN-I Zagreb, d.o.o., trgovina i
prodaja električne energije
Managing Director: dr. Igor
KOPRIVNIKAR
Ružmarinka 25
10000 Zagreb
Croatia
Phone: +386 1 58 96 400
Fax: +386 1 58 96 439
E-mail: info@gen-i.si
http://www.gen-i.si
Istrabenz Gorenje, avtomatizacija
procesov, d.o.o.
Managing Director: Marko URBANIJA
Holder of Power of Attorney: Ciril
PUCKO
Naselje na Šahtu 53
1412 Kisovec
Phone: +386 3 56 70 700
Fax: +386 3 56 70 701
E-mail: info@avtomatizacija.si
http://www.avtomatizacija.si

187
Istrabenz Gorenje projekt, svetovanje,
projektiranje, inženiring, d.o.o.
Managing Directors: Jože POTRPIN,
Peter LINDIČ
Holder of Power of Attorney: Ciril
PUCKO
Nasipi 49
1420 Trbovlje
Phone: +386 5 99 74 651
Fax: +386 3 56 14 707
Vitales, d.o.o., Bihać
Managing Director: Borut Del FABBRO
Naselje Ripač BB
77000 Bihać
Bosnia and Herzegovina
Phone: +387 37 319 126
Fax: +387 37 319 127
GEN-I Budapest, Kft., Electricity
Trading Limited Liability Company
Managing Director: dr. Igor
KOPRIVNIKAR
Tusnadi u 39. fszt. 3.
1125 Budapest
Hungary
Phone: +386 1 58 96 400
Fax: +386 1 58 96 439
E-mail: info@gen-i.si
http://www.gen-i.si
GEN-I Tirana, Sh.P.K
Managing Director: dr. Igor
KOPRIVNIKAR
Ish - Noli Business Center, Rr: Ishnail
Qemali, Nr. 27
Tirana
Albania
Phone: +386 1 58 96 400
Fax: + 386 1 58 96 439
E-mail: info@gen-i.si
http://www.gen-i.si
Vitales, društvo za proizvodnju goriva
od biomase, d.o.o., Nova Bila, Travnik
Managing Director: Borut Del FABBRO
Nova Bila b.b.
72276 Travnik
Bosnia and Herzegovina
Phone: +387 (30) 707 344
Fax: +387 (30) 707 344
E-mail: info@vitales.ba
http://www.vitales.ba
Vitales, d.o.o., Sokolac
Managing Director: Matej POŽUN
Ul. Pere Kosorića 2
71350 Sokolac
Bosnia and Herzegovina
Vitales Nova Gorica, trgovanje z
oplemeniteno biomaso, d.o.o.
Managing Director: dr. Robert GOLOB
Tumova ulica 5
5000 Nova Gorica
Phone: +386 5 33 11 974
Fax: +386 5 33 11 979
http://www.istrabenz-es.si
GEN-I, d.o.o., društvo za trgovinu i
prodaju električne energije, Sarajevo
Managing Director: dr. Igor
KOPRIVNIKAR
Hamdije Kreševljakovića 7
71000 Sarajevo
Bosnia and Herzegovina
Phone: +386 1 58 96 400
Fax: +386 1 58 96 439
E-mail: info@gen-i.si
http://www.gen-i.si
BPC, družba za prirejanje kongresov
in poslovno svetovanje, d.o.o.
Managing Director: Borut Del Fabbro
Holder of Power of Attorney: dr. Dejan
PARAVAN
Sočebranova ulica 4
5250 Solkan
Vitales Čakovec, d.o.o., društvo
s ograničenom odgovornošću za
proizvodnju i usluge
Managing Director: Saša MATIĆ
Frankopanska 62,
Peklenica
Croatia

188
2008
Vitales Energie Biomasse Italia S.R.L.
Representatives: Jure ŠPACAL, Devis
FACCANI, Robert GOLOB, Mirko
PREVEDELLO, Maurizio PONTAROLO,
Rado KOTAR
Via del San Michele 340 cap
34170 Gorizia
Italy
BUSINESS NETWORK ABROAD
Gorenje Beteiligungs GmbH
Managing Director: Marko ŠEFER
Keplerplatz 12
A-1100 Vienna
Austria
Phone: +43 1 607 00 70
Fax: +43 1 607 00 709
E-mail: sekretariat@gorenje.net
Gorenje Austria Handels GmbH
Managing Director: Sandra LUBEJ
Johann-Schorsch-Gasse 1
A-1140 Vienna
Austria
Phone: +43 1 601 31 0
Fax: +43 1 601 31 9401
E-mail: info@gorenje.at
http://www.gorenje.at
Gorenje France S.A.S
Managing Director: Matej ČUFER
85, rue Edouard Vaillant – B.P. 228
92306 Levallois – Perret Cedex
France
Phone: +33 1 45 19 30 08
Fax: +33 1 47 39 08 13
E-mail: gorenje.france@gorenje.fr
http://www.gorenje.fr
Gorenje Körting Italia S.r.l.
Managing Director: Matjaž GERATIČ
Via Trento 1
I-34132 Trieste
Italy
Phone: +39 040 37 52 111
Fax: +39 040 66 21 21
E-mail: info@korting.it
http://www.gorenje.it
http://www.korting.it
Gorenje Vertriebs GmbH
Managing Director: Klemen PREŠEREN
Garmischer Straße 4-6
D-80339 Munich
Postfach 20 09 53, 80009
Germany
Phone: +49 89 502 070
Fax: +49 89 502 07100
E-mail: info@gorenje.de
http://www.gorenje.de
Gorenje UK Ltd
Managing Director: Jernej HREN
Tuition House
27-37 St. George’s Road
London, SW 19 4EU
United Kingdom
Phone: +44 20 82 47 39 80
Fax: +44 20 82 47 39 99
E-mail: info@gorenjeuk.co.uk
http://www.gorenje.co.uk
Gorenje BELUX S.a.r.l.
Managing Director: Matej ČUFER
Hoevestraat 25 A 1
1755 Gooik
Belgium
Phone: +32 54 56 97 61
Fax:
+32 54 56 97 63
E-mail: gorenje.belux@skynet.be
Gorenje España S.L.
Managing Director: Matjaž GERATIČ
C./Nicaragua 46 3.3
ES-08029 Barcelona
Spain
Phone: +34 93 363 02 17
Fax: +34 93 363 30 23
E-mail: info@gorenjespain.com

189
Gorenje Bulgaria EOOD
Managing Director: Darko MLINAR
6, Bel kamak str.
BG-1346 Sofia
Bulgaria
Phone: +359 2 89 24 150; +359 2 89 24
160
Fax: +359 2 89 24 180
E-mail: gorenje@techno-link.com
http://www.gorenje.bg
Gorenje spol. s r.o.
Managing Director: Suad HADŽIĆ
Pobočná 1/1395
141 00 Praha 4 – Michle
Czech Republic
Phone: +420 244 104 511
Fax: +420 261 217 887
E-mail: gorenje@gorenje.cz
http://www.gorenje.cz
Gorenje Skandinavien A/S
Managing Director: Kristian HANSEN
Roskildevej 290
2610 Rødovre
Denmark
Phone: +45 36 72 11 33: +45 36 72 33
88
Fax: +45 36 72 25 55
E-mail: salg@gorenje.dk
http://www.gorenje.dk
Gorenje AB
Managing Director: Kristian HANSEN
Box 4137
SE – 203 12 Malmö
Sweden
Phone: 0200 22 33 88
Fax: 0200 22 33 89
E-mail: kundservice@gorenje.se
http://www.gorenje.se
OÜ Gorenje
Managing Director: Kristian HANSEN
p. k. 1696
10602 Tallinn
Estonia
Phone: +372 611 99 05
http://www.gorenje.ee
Gorenje Polska Sp. z o.o.
Managing Director: Franc ROGAN
Ul. Poznańska 159
05-850 Ożarów Mazowiecki
Poland
Phone: +48 22 738 32 01
Fax: +48 22 738 32 15
E-mail: gorenje@gorenje.pl
http://www.gorenje.pl
Gorenje Budapest Kft.
Managing Director: Bogdan URH
Dohāny utca 20
1077 Budapest
Hungary
Phone: +36 1 41 33 140
Fax: +36 1 41 33 149
E-mail: info@gorenje.hu
http://www.gorenje.hu
Gorenje real spol. s r.o.
Managing Director: Suad HADŽIĆ
Pobočná 1/1395
141 00 Praha 4 – Michle
Czech Republic
Phone: + 420 244 104 511
Fax: + 420 261 217 887
E-mail: gorenje@gorenje.cz
http://www.gorenje.cz
Gorenje AS
Managing Director: Kristian HANSEN
Postboks 517 – Sentrum
NO-0105 Oslo
Norway
Phone: 63 86 80 80
Fax: 63 86 80 82
E-mail: salg@gorenje.
nomailto:gorenje@gorenje.sk
http://www.gorenje.no
Gorenje OY
Managing Director: Kristian HANSEN
PL 2600 FIN
FI - 00002 Helsinki
Finland
Phone: 010 80 22 33
Fax: 010 80 22 34
E-mail: kodinkoneet@gorenje.fi
http://www.gorenje.fi
SIA Gorenje
Managing Director: Kristian HANSEN
Krisjāna Valdemāra 21
Rīga, LV 1010
Latvia
Phone: +371 73 32 325
Fax: +371 73 32 326
http://www.gorenje.lv
Gorenje Slovakia s.r.o.
Managing Director: Bogdan URH
Polianky 5a
841 01 Bratislava
Slovakia
Phone: +421 26 92 03 939
Fax: +421 26 92 03 993
E-mail: gorenje@gorenje.sk
http://www.gorenje.sk

190
2008
Gorenje, d.o.o., Beograd
Managing Director: Marko MRZEL
Bulevar Milutina Milankovića 7
11070 Novi Beograd
Serbia
Phone: +381 11 353 41 00
Fax: +381 11 353 41 11
E-mail: office@gorenje.rs
Gorenje Zagreb, d.o.o.
Managing Director: Jan ŠTERN
Slavonska avenija 26/4
10000 Zagreb
Croatia
Phone: +385 1 241 50 00
Fax: +385 1 241 50 09
E-mail: info@gorenje.hr
http://www.gorenje.hr
Gorenje Podgorica, d.o.o.
Managing Director: Darko VUKČEVIĆ
Cetinjski put bb
Sitnica
81000 Podgorica
Montenegro
Phone: +382 81 405 700
Fax: +382 81 261 780
E-mail: gorenjepg@gorenje.cg.yu
Gorenje gospodinjski aparati DOOEL,
društvo za vnatrešna i nadvorešna
trgovina, Skopje
Managing Director: Nenad JOVANOVIĆ
Partizanska odredi br. 99
1000 Skopje
Macedonia
Phone: +389 2 3062 323 / 3061 178
Fax: +389 2 3064 177
E-mail: gorenje@gorenje.com.mk
Gorenje TOV
Managing Director: Matjaž PODLOGAR
15 Turgenevskaya Str., 4-th floor
Kiev, 01054
Ukraine
Phone: +380 44 490 22 44
Fax: +380 44 490 22 44
E-mail: info@gorenje.ua
http://www.gorenje.ua
ST Bana Nekretnine, d.o.o.
Managing Director: Rudolf KREBL
Prizrenska 6/V
11000 Belgrade
Serbia
Phone: +381 11 362 95 95
Fax: +381 11 362 95 96
E-mail: imobiliag@sbb.co.yu
Gorenje Invest, d.o.o.
Managing Director: Marko MRZEL
Bulevar Milutina Milankovića 7
11070 Novi Beograd
Serbia
Phone: +381 11 353 41 00
Fax: +381 11 353 41 11
E-mail: office@gorenje.rs
Gorenje Commerce, d.o.o.
Managing Director: Robert POLŠAK
Ul. Kamenolom br. 11
71215 Blažuj-Sarajevo
Bosnia and Herzegovina
Phone: +387 33 773 050
Fax: +387 33 628 922
E-mail: amela@gorenje.ba
Gorenje Romania S.R.L.
Managing Director: Anton PRISLAN
Sos. Nordului nr. 24-26
Sector 1
Bucharest
Romania
Phone: +40 21 233 33 90 / 71
Fax: +40 21 233 32 69
E-mail: gorenje@gorenje.ro
http://www.gorenje.ro
Gorenje Gulf FZE
Managing Director: Nermin SALMAN
Jebel Ali Free Zone – Jafza
Dubai
P.O. Box 18651
United Arab Emirates
Phone: +971 4886 08 58
Fax: +971 4886 09 58
E-mail: nsalman@gorenjegulf.ae
Gorenje Istanbul Ltd.
Managing Director: Suad MUJAKIĆ
Fahrettin Kerim G. Cad. No.5
34662 Altunizade
Istanbul
Turkey
Phone: +90 216 65 19 000
Fax: +90 216 65 19 080
E-mail: suad.mujakic@gorenje.com.tr
Gorenje Kazakhstan, TOO
Managing Director: Roman JEGLIČ
Ul. Begalina 49
050010 Almaty
Kazakhstan
Phone: +7 (727) 29 30 307
Fax: +7 (727) 29 30 307
E-mail: info@gorenje.kz
http://www.gorenje.kz

191
REPRESENTATIVE OFFICES
Gorenje, d. d., Velenje
Representative offices in the Russian
Federation
- Moscow
Managing Director: Marko ŠPAN
1 Smolenskij per., d.5, Str.1
121099 Moscow
Russia
Phone: +7 495 937 97 35 / 36 / 37
Fax: +7 495 937 97 38 / 62
E-mail: info@gorenje.ru
Gorenje, d. d., Velenje
Representative offices in the Russian
Federation
- Krasnoyarsk
Managing Director: Olga ZELEZKO
Ul. Vzljotnaja 26g
660135 Krasnoyarsk
Russia
Phone:+7 3912 70 50 60
Fax:+7 3912 70 55 60
E-mail: gorenje@online.ru
Gorenje, d.d., Velenje
Gorenje, d.d., Velenje
Representative office in Ukraine
Managing Director: Matjaž PODLOGAR
15 Turgenevskaya Str., 4-th floor
Kiev, 01054
Ukraine
Phone: +380 44 490 22 44
Fax: +380 44 490 22 44
E-mail: info@gorenje.ua
http://www.gorenje.ua
Gorenje, d. d., Velenje
Representative office in China
Managing Director: Andy MIKLAV
Shanghai
No.300 Xikang Road
Ben Ben Mansion, Office 1203
P.C.: 200040
P.R of China
Phone: +86(0)21 6288 9280
Fax: +86(0)21 6288 9281
E-mail: info@gorenje.cn
http://www.gorenje.cn
Gorenje, d. d., Velenje
Representative office in Kazakhstan
Managing Director: Roman JEGLIČ
050010 Almaty
Ul. Begalina 49
Kazakhstan
Phone: +7 (727) 2930307
Fax: +7 (727) 2930307
E-mail: info@gorenje.kz
http://www.gorenje.kz
Gorenje, d. d., Velenje
Representative office for Kosovo and
Albania
Managing Director: Darko VUKČEVIĆ
Cetinjski put b. b.
81000 Podgorica
Montenegro
Phone: +382 81 405 700
Fax: +382 81 261 780
E-mail: gorenjepg@gorenje.cg.yu
Gorenje, d.d., Velenje
Representative office in Greece
Managing Director: Manzurul – Haque
CHOWDHURY
67, Daskaroli Str.
Centrum Buildings A-7
166 75 Glyfada
Athens
Greece
Phone: +30 2 10 96 41 666
Fax: +30 2 10 96 26 207
E-mail: gorenje@otenet.gr