Kranj, 13 January 2010 – At today's press conference, the Board of Management of Sava d.d. presented the Strategic Guidelines and Goals of the Sava Group and Sava d.d. for the next 3-year period, until 2012, and main characteristics of the 2010 business plan. In this strategic period Sava Group companies plan to achieve further growth in its result despite unfavourable and uncertain circumstances.

In introduction to the presentation of the 2010-2012 strategy Janez Bohorič, chairman of the Board of Management of Sava d.d.,  presents the successful implementation of the development strategy of Sava after 1997 when Sava sold the tyre business to the Goodyear corporation and entered a new strategic path. The volume of operations increased several fold in this period along with the growth in Sava Group assets. The 2010-2012 strategy represents the implementation of long-term goals that Group has set: growth in Sava Group assets, a portfolio of globally competitive products and services (strategy TOP 3/2/1), highly trained employees and developed efficiency culture, increased  return on capital, long-term growth in the value of financial investments and sustainable development of operations.  The current situation of the rapidly changing and uncertain business environment demands for well-developed anticipation, quick response and adaptability. Sava has been proving such ability through 90 years of its existence.  In the financial data, the 2010-2012 strategy of the Sava Group considers a portfolio of the existing Group operations, which will further develop.  He emphasises that in the future the structure of  Sava Group portfolio could  change and a gain on focus, which the Group management will implement through preparation of additional case scenarios and adapting to the economic environment on an ongoing basis.

Mag. Antonija Pirc, director of the competence centre Strategic Controlling at Sava d.d., stresses the starting points of the renewed strategy, approach to its preparation, monitoring the  implementation and renewal. She points out that the strategic planning process in these circumstances demands a more dynamic approach, which includes a shorter period of time.  Further, she points out certain improvements in the process of monitoring the implementation and renewal of the strategy introduced during the strategy renewal.  The development strategy of the Sava Group will be revised at least once per year in order to provide a timely and suitable response to hazards and opportunities in the business environment.   

Vinko Perčič, member of the Board of Management of Sava d.d.,  emphasises that successful operation of the Sava Group will continue in this 3-year strategic period too.  One of the key strategic priorities is optimising the value of Sava Group assets, as well as assuring and maintaining optimum financing sources. In 2010, Sava Group sales will increase by 11% to €191.2 million. Added value per employee will increase by 12% to €35,600 per employee.
This year Sava Group companies will generate a total pre-tax profit of €22.8 million (net profit of €21.4 million, while Sava d.d. will generate a total pre-tax profit of €13.6 million, (a total profit of €13.2 million). The planned net earnings per Sava share amounts to €10.7. In 2010 too, Sava d.d. plans the implementation of the adopted dividend policy which assures Sava shareholders a regular payment and stable growth of dividend.   
 
Emil Vizovišek member of the Board of Management of Sava d.d., emphasises that the renewed 20-2012 strategy, as all previous Sava’s strategies, is based on assuring sustainable operations. Its purpose is to achieve the highest business efficiency possible in the short- and medium-term period and to optimise the assets of Sava Group companies but not to the detriment of the long-term sustainable growth. The strategy considers all components of sustainable development: economic, environmental and social as well as their balanced development. He presents the effects of continual improvements carried out by Group companies to increase the result in all business segments. Their effects have already alleviated and will considerably alleviate the impacts of the general crisis.       

Development directions and key goals of Rubber Manufacturing with the foreign trade network were presented by the directors of  Savatech, d.o.o., Igor Hafnar and Vesna Čadež. Owing to their focus, innovation and high-quality offer, providing integral solutions in numerous product groups, the companies achieve leading position in world market niches.  In order to consolidate the position, the development of most promising programmes will be accelerated: EKO, Print, VELO and Mixing Plant. In other programmes a radical product renovation will be carried out.  Main attention will be devoted to the development of high-added products in new areas and an increase in share of innovative products, thereby actively searching for new development opportunities through take-overs and capital links in order to obtain new technologies and markets.  For 2010, Rubber Manufacturing plans a 13% increase in sales, whereby new products will have one fifth share in sales revenues.  Added value per employee will increase by 19%. New development projects are in progress, which will demand a higher investment volume.     

Among strategic orientations of Tourism Mag. Andrej Šprajc, director of Tourism, pointed out establishing standardised business models in the key business areas, which will be one of key tasks of newly established company Sava TMC, d.o.o. Most important are the renewal of marketing function and establishing uniform standards of operation for achieving higher quality and recognition of offer.  Among the strategic priority tasks is establishing the umbrella brand Sava Hotels & Resorts. They plan further development of organisational, management and information systems that will enable successful operation of the entire division and facilitate its expansion. To preserve natural resources and protect the environment they will focus on the development of green tourism in all business segments and adapt to this goal the investment activity in 2010: renovate the filtration and disinfection system in swimming pools, renovate irrigation system in Bled golf course and arrange thermal water wells.  In 2010, a 10% increase in sales,  and a 15% increase in added value per employee are  planned.  

Ana Finc, financial director Sava IP, d.o.o., presents strategic directions and goals of Real Estate managed by director Jože Kavčič. Real estate business was strongly affected by the crisis.  During crisis Sava IP, d.o.o. will sell certain real estate to partly decrease  indebtedness, the remaining assets will be earmarked for the development of projects that are being prepared. The key strategic orientation in the project preparation remains to be sustainable development, in particular in view of environmental issues and rational energy design of buildings. In 2010, this division plans at least an 8% decrease in sales, which is due to the market situation and a cycle, in which the projects of this division take several years to be completed.   

Stanko Cvenkel, director of the company  Energetika Sava, d.o.o., explains that until 2012 the energy management companies will focus on the enhancement of energy efficiency of Sava Group companies, and considering sources they have available, they will be active in the renewable energy sources area in Slovenia and the Balkans. Larger projects thatw ill increase energy efficiency in Group companies: cogeneration in Kranj-based companies; efficient use of energy  in Rubber manufacturing companies: Savatech, d.o.o., and Sava GTI, d.o.o., and dealing with energy-related issues in Tourism companies: Sava Hoteli Bled, d.d., Zdravilišče Radenci, d.o.o. and Terme 3000, d.o.o. In 2010, energy management companies will considerably increase their sales.  

Sava, d.d.
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