The Group KD Group and KD Group dd

The KD Group Annual Report 2009
Operating expenses
In 2009 operating expenses 19 totalled EUR 431.4 million, up 22 percent compared to 2008. In the operating expenses
structure, the majority, 63 percent represents net expenditure for insurance entitlements and claims, which recorded a 73
percent increase in 2009, primarily due to increase in liabilities to the unit-linked investments (stock prices growth in 2009
compared to 2008) and thus the increase in long-term insurance provisions. Compared to the previous year, costs of
services which account for 16 percent of total operating expenses, are down by 9 percent, as are labour costs which account
for 13 percent of total costs and which recorded an 11 percent decline. This reduction is due to the disposal of
cinematographic activities and rationalisation of the costs in the Group. Majority of other expenses present revaluation
operating expenses due to impairment of receivables, loans and goodwill.
Structure of operating expenses and changes in 2009 and 2008 (in EUR thousand):
2009 2008
Operating expenses ( in EUR thousand )
0
(50.000)
(100.000)
(150.000)
(200.000)
(250.000)
(300.000)
(350.000)
(400.000)
(450.000)
(500.000)
(68.690) (75.690)
(57.577) (64.406)
(156.842)
(271.476)
(57.274)
(33.657)
(431.399)
(354.212)
Other expenses
Net expenses for
claims
Labour costs
Cost of services
Net profit or loss
The Group recorded a net loss in the amount of EUR 44.2 million in 2009.
The tightened financing conditions resulted in the impairment and write-down of some of financial investments. Profits were
generated in 2009 by the health insurance (EUR 3.8 million) and property insurance (EUR 2.2 million). The largest loss was
recorded by financial services (EUR 35 million), followed by life insurance (EUR 10.4 million) and banking sector which
incurred a loss of EUR 3.4 million.
Net profit or loss of the Group in 2009 and 2008 (in EUR thousand):
0
2009 2008
Net profit or loss ( in EUR thousand)
(10.000)
(20.000)
(30.000)
(40.000)
(50.000)
(60.000)
(70.000)
(80.000)
(90.000)
(44.223)
(77.004)
19 Expenses and costs are shown with a negative sign so that the tables in the analysis of operations are in line with the tables in the financial section of the
Annual Report.
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