Annual report 2005 - Sava dd

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implemented by establishing competences in both key
areas of our operations: managing the majority-owned
companies and managing the investment portfolio.
Managing the companies: subsidiaries are trained to
achieve returns on capital invested that are above
average with regard to the relevant branch.
Managing the companies is based on five strategic
guidelines:
• to ensure the most modern management systems;
• to establish efficient competence centres of knowledge
in all key strategic business areas;
• to provide conditions for employment, development
and motivation of all employees, particularly top
specialists;
• to focus on developing and augmenting the portfolio
of globally competitive products and services in the
long run; and
• to ensure operational excellence and cost efficiency.
Managing the portfolio: we identify, select, acquire
and integrate the right portfolio of businesses that
improve the profitability of investments in the divisions
of the Sava Group.
Managing the portfolio – either acquisitions or
divestitures – is an essential component in managing
such a diverse system like Sava, therefore exacting
criteria that support expertise in this field are being
developed.
The mission of the Sava Group: we are oriented to
continually surpassing the expectations of customers,
employees, shareholders, partners and the environment at
the level of the entire Group, as well as creating attractive
opportunities to employ the best personnel in Slovenia.
The renewed vision of the holding company Sava
seeks to become the most successful and sought-after
capital manager in Slovenia and a respected and
responsible partner in the sustainable development of
the natural and social environment.
The vision of the Sava Group is to offer the greatest
value to the customer and most appealing opportunity
for employing the best personnel in Slovenia.
We have adopted common business principles that in
addition to values represent the basis of our operations.
The common principles that direct the operations of all
Sava Group companies are:
• profitable growth;
• competent and motivated employees;
• excellent knowledge of customers;
• innovative products and services;
• reliability and operational excellence; and
• a fair and ethical business.
The values of the Sava Group direct the organisational
culture of our business system and place great emphasis
on responsibility and the focus on achieving outstanding
results and excellence in conducting business. We are
led by the following values:
• excellence in everything we do;
• reliability and efficiency;
• knowledge, creativity and self-initiative;
• co-operation based on mutual respect and an open
dialogue; and
• responsibility towards the natural and social
environment.
2005 – the primary goal for
2007 surpassed
In recent years Sava has experienced a radical
reorganisation and increased its business success by
restructuring its operations, strengthening its brand
names, making huge investments, increasing the
efficiency of its processes and combined involvement of
its employees.
The plans as set for 2007 have been achieved faster than
originally expected. Already in 2005 the return on
equity surpassed the 10 per cent figure specified in the
strategy, which should be reached only in 2007. The
equity value of the Sava Group rose to €388 million,
and the share book value exceeded the figure of €192
per share. Moreover, in 2005 we invested highly in
further development, especially in the technology and
renewal of our facilities, which will be continued in
2006 and beyond. With new investments the Sava
Group has created and will create new jobs, especially
in Pomurje.
These accomplishments – combined with the achieved
portfolio strength of our operations and companies –
have created a solid foundation for the future and
provided the strength to further exceed our expectations.