1
Press Release
Business operations of the Sava Group and the company Sava d.d. in the
period January – September 2011
Kranj, 23 November 2011 – At yesterday's, the 29th regular meeting, the
Supervisory Board of Sava d.d. was made acquainted with the report about
business operations in the period January-September 2011 and the estimate of
business until the end of the year. The Supervisory Board was made acquainted
with the implementation of the strategic policies of the Sava Group.
The sales results of the Sava Group surpass the plan and last year’s
achievements. Rubber Manufacturing is achieving record-breaking values,
Tourism operates well too. Sava’s profit from operations is higher than last
year and better than planned. Total profit of subsidiaries surpasses last year’s
values. The loss is entirely due to impairments of financial investments of Sava
d.d. The banks creditors were already submitted the restructuring plan of
financial liabilities. The Management Board and the Supervisory Board expect
that financial partners, banks creditors of Sava, will give their full support to
the implementation of the restructuring strategy
In the first nine months this year, Sava Group companies made sales revenues of €148.0 million,
which was 11% more than in the same period last year and 1% better than planned. Rubber
Manufacturing and Tourism generated the majority or 95% of total Sava Group sales. Sava's
companies generated 53% of consolidated sales revenues in foreign markets.
The sale and performance of the largest Sava's division Rubber Manufacturing achieve recordbreaking figures. The division generated sales revenues of €90.9 million, thereby improving last
year's result in the same period by 16% and surpassing business plan by 9%. Sales revenues of
Tourism amounted to €50.6 million; the achieved growth in sales was 8% better than in the same
period last year and it surpassed the dynamic business plan by 2%.
Real Estate and Other
Operations did not achieve the dynamic sales plan, their volumes being relatively smaller and
representing only a 5% share in the total sale structure of the Sava Group.
The operating profit of Sava Group companies, which totalled €2.5 million at the half-year, rose in
this third quarter to reach €6.4 million at the end of September. The operating profit of Sava d.d.
was by €2.7 million higher than in the same period last year and by €3.0 million better than
planned. This year, investments were limited and totalled €5.6 million at Group's level.
Sava, družba za upravljanje in financiranje, d.d., Škofjeloška c. 6, 4000 Kranj
Dodatne informacije: mag.Tadeja Kuhar, GSM: 051 395 540; e-mail: [email protected]
2
Press Release
The parent company of the Group, Sava d.d., generated revenues from share in the profit of
associated companies of Sava d.d. of €11.0 million, which mainly referred to dividends received
from Gorenjska Banka d.d. and Abanka Vipa d.d. The financial result of Sava d.d. was positively
affected by revenues from the sale of financial investments totalling €3.4 million m and financial
revenues from approved loans totalling €2.0 million.
The result of Sava d.d. was materially affected by the negative movements in the capital markets
and the increased risks originating from saleability of certain financial investments, such trend
continued in the third quarter of this year. This year Sava d.d. had to additionally impair financial
investments in total amount of €55.8 million.
In nine months of 2011, the subsidiaries of the Sava Group made a total profit of €5.0 million,
thereby surpassing the comparable last year’s profit by €3.1 million. The profit of subsidiaries was
by €3.0 million lower than planned and originated from the critical business situation that the real
estate company had to face in Croatia. The programme to rehabilitate the operation of this
company is in progress.
The loss of Sava d.d., which is entirely due to impairments of financial investments, totalled €56.2
million at the end of September. Owing to impairments of financial investments of Sava d.d.,the
operating result of the Sava Group was negative and amounted to €39.5 million.
In nine months of this year, the value of the Sava share moved between €95.0 and €23.6. At the
end of September the uniform bid price stood at €23.6 and compared to the end of the first halfyear it dropped by 41%. At 30/09/2011 the book value of the Sava share amounted to €144.2 and
compared to the end of the first half-year it decreased by €4.7 per share. This decrease was due
to impairments of financial investments in the holding company Sava d.d.
The balance sheet total amounted to €733.5 million at 30/09/2011 and compared to the end of
2010 it decreased by 4%. At the end of September the share of capital in the liabilities structure
amounted to 39%. Total financial liabilities of the Sava Group amounted to €382.6 million, which is
at level from the end of 2010. The financial liabilities of Sava are insured, the value of collateral
significantly exceeding the financial liabilities of the company.
The aggravated situation in the banking market, which results from the generally tough economic
situation, forced the banks to act with a higher level of cautiousness in crediting companies. At
Sava we have, therefore, greatly focused on providing for liquidity of the company, regular
settlement of financial liabilities and regulating relationships with the banks creditors. Parallel with
that, all Sava Group companies are continually carrying out the measures for stabilising the
operations, the activities for strengthening cash flow in subsidiaries, a rationalisation of operating
costs as well as other measures to increase the profit from operations.
Sava, družba za upravljanje in financiranje, d.d., Škofjeloška c. 6, 4000 Kranj
Dodatne informacije: mag.Tadeja Kuhar, GSM: 051 395 540; e-mail: [email protected]
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Press Release
To assure liquidity and financial soundness in long term, the banks creditors were submitted the
restructuring plan of financial liabilities of Sava d.d. based on the strategy adopted in September.
The restructuring plan minutely defines the activities for disinvesting the investments of Sava d.d.,
thereby supporting the implementation of the goals from the strategy, which aim at decreasing
and achieving a long-term sustainable level of Group’s indebtedness, respectively.
The business forecast indicates that the sales plan of the Sava Group will be achieved, while the
profit from operations and total profit of the subsidiaries will even surpass last year’s values. The
performance of Sava’s division Rubber Manufacturing will be outstandingly effective, while that of
Tourism will be good. Any deviations from the plan of Sava d.d. and the Sava Group will be due to
impairments of financial investments, which as estimated by the Management Board and external
auditors will have to be carried out in last quarter.
The Management Board made the Supervisory Board of Sava d.d. acquainted with the
implementation of strategic policies of the Sava Group. The key projects, which are being intensely
carried out in Sava, include the already mentioned financial restructuring of Sava d.d., disinvesting
of investments, the reorganisation of Sava d.d. and a change in the management model as well as
merging the Tourism division, which in addition to the positive effects in direction of business
consolidation brings the need for decreasing the number of employees; activities are already in
progress.
The goal of the restructuring strategy of Sava until 2014 is to decrease indebtedness, ensure
stable operation in long term, strengthen the basis for the growth in the value of the Sava share,
enhance the value of the company for shareholders as well as a long-term well-being for all
stakeholders of Sava. The Management Board and Supervisory Board of Sava d.d. expect to
receive a full support for its implementation from financial partners – banks creditors of Sava.
Sava d.d.
Corporate Communications
Sava, družba za upravljanje in financiranje, d.d., Škofjeloška c. 6, 4000 Kranj
Dodatne informacije: mag.Tadeja Kuhar, GSM: 051 395 540; e-mail: [email protected]