At its 6th regular meeting held on Wednesday, 27 March 2013, the Supervisory Board of the joint stock company Sava d.d. dealt with and adopted the audited annual reports of the Sava Group and Sava d.d. for 2012. It adopted a report by the Supervisory Board on the annual reports of the Sava Group and Sava d.d., which includes a review of business and work of the Management Board of Sava d.d. in 2012.
It was presented the revised business plan of the Sava Group and Sava d.d. for 2013 and a regular, monthly business report for the first two months of this year.
When reporting on the implementation of restructuring strategy, the Supervisory Board particularly focused on dealing with the strategy implementation in Sava's Tourism division.
The Supervisory Board agreed with the Agenda and the proposed resolutions of the 19th Shareholders' Meeting of Sava d.d. that will be held on Tuesday, 30 April 2013, whereas the Call of the Shareholders' Meeting will be published on Friday, 29 March 2013.
When dealing with the annual report, the Supervisory Board of Sava d.d. pointed out that after a consistent fulfilment of the strategic goals of the first – preparation – restructuring phase until the end of 2011, the Management Board fulfilled all of the key commitments of the next restructuring phase outlined for 2012.
The major strategic achievements of the year 2012 were: maintaining current liquidity and solvency of the company and further successful agreements with the lending banks on postponing the payment of credit obligations of the Group; further reorganisation and consolidation of the operations of both Sava d.d. and Tourism, and last but not least, the efficient performance of divesting programme (selling the entire Rubber Manufacturing, the key part of the Real Estate division and certain other financial investments).
In the beginning of this year the divestments facilitated to reduce indebtedness of the Sava Group by even about €100 million, at which the Group’s companies regularly paid the interest on the bank loans, which exceeded the amount of €21 million last year.
The companies of the Sava Group made sales revenues of €192.2 million or 1% below the previous year's figure when a high, 10%, growth was made. Furthermore, the sales volume of the Group was influenced by a change in the Group's composition as the prevailing part of the Real Estate business was sold in the middle of the year.
The operating profit of the subsidiaries of Sava d.d. was generated in the amount of €11.0 million; due to lower impairments of assets it was by €13.2 million better than in 2011, which is the highest value in the period of the past five years.
In spite of further improvements in the operating business and profitable operations of the subsidiaries of Sava d.d., the additional impairments of financial investments of Sava d.d. had by far the greatest impact on the achieved result, which mostly referred to the banking sector and, to a minor degree, also to non-payment of the planned banks’ dividends, a change in the tax legislation and a time-shift in finalising the sale of assets of Sava d.d. into January 2013.
Owing to the impairments of financial investments in the amount of €34.5 million, Sava d.d. made a loss of €49.0 million. The Sava Group – with a net profit of €6.9 million generated by the subsidiaries – showed a loss of €99.3 million due to the impairments of €85.4 million. The loss is otherwise lower than in the year before, however, the fact is that the sale of Rubber Manufacturing was finalised in the first days of this financial year, which is why, the generated profit of €23.5 million and other effects arising from this transaction will be recognised in the 2013 results. The Management Board of Sava d.d. plans for the company to end this financial year with a profit.
The image of the Sava Group has considerably changed due to the disposals carried out in 2013. The largest Group's divisions are the management of financial investments of Sava d.d., with its principal investments in the banking sector, and the merged and consolidated Tourism division. In this year, Tourism plans to further improve its profitability although the economic circumstances have further deteriorated. It is planned that the synergies are better utilised to improve the Tourism business, but the major strategic goals that the Management Board of Sava d.d. set for 2013 are to upgrade the arrangements made with the lending banks for a long-term coordination of maturity of financial liabilities and to further restructure the investments Sava d.d. has in the banks.