Annual report 2005 - Sava dd

10.Financial
Management
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After Sava d.d. had been restructured into a holding company for managing and financing, the role of
financial management has become one of performing essential business functions. The policy is defined at the
level of the parent company, and the co-ordinated presence of Group companies is the domain of the
competence centre Finance.
Sava d.d. does not appear as a direct lessee of required
credit sources. As a rule, the companies themselves hire
loans, which depends on the agreement and planned
indebtedness requirements that are planned annually.
Outside the Group the companies are not able to
contract debts without approval from the Strategic
Finance Department, which agrees upon the terms and
conditions with a selected bank. The balancing of cash
flows, which guarantees financial solvency and using
lines of credit to do so, is agreed upon and co-ordinated
in the same manner.
SAVA GROUP
Hired loans of the Sava Group
by creditor
Credit sources at 31/12/2005
Credit sources at 31/12/2004
160
140
120
100
80
60
40
20
The structure of hired loans and credit sources,
respectively, by creditor type demonstrates that in 2004
the share of bank loans of the Sava Group totalled
around 80 per cent. In 2005 it remained at
approximately the same level. The share of crediting by
the Sava Group was at approximately the same level in
2004 and 2005 – around 20 per cent. A negligible source
of assets is represented by other sources (legal entities).
In 2004 this share amounted to 0.56 per cent, while in
2005 it decreased to 0.22 per cent.
Banks Sava Group
~ 18%
(31/12/2004)
~ 20%
(31/12/2005)
~ 0.56%
(31/12/2004)
~ 0.22%
(31/12/2005)
Other creditors