ANNUAL REPORT 2008 - Gorenje Group

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