Annual report 2005 - Sava dd

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Operating expenses
The Sava Group operated with operating expenses in the
amount of €206.4 million, which was 8.7 per cent more
than in the previous year. In the operating expenses
structure costs of goods, materials and services had a
70.1 per cent, labour costs a 22.3 per cent, depreciation
a 6.1 per cent, and write-offs and other expenses a 1.5
per cent share.
Earnings before interest and taxes
(EBIT)
EBIT in the amount of €8.3 million included the
recognised revenues due to the elimination of negative
goodwill in the amount of €1.29 million, which in the
previous year were much higher and totalled €14.5
million.
EBIT, without considering the revenues originating
from the elimination of negative goodwill totalling €7.0
million, was 38.2 per cent higher than last year. The
growth in sales, strict supervision over the cost increase
and optimum use of operating assets resulted in an
improvement of the operating performance of the
Group, which for the second year in a row was reflected
in enhanced EBIT.
Net financing income
In 2005 the Sava Group created financing income in the
amount of € 24.4 million, or 16.2 per cent less than last
year. In the financing income structure the profit in sale
of financial investments had a 77.7 per cent share and
received dividends an 8 per cent, received interest a 5.6
per cent and other financing income an 8.7 per cent
share. Financing income was mainly generated by the
company Sava d.d. and is described in the part of the
annual report that refers to Sava d.d.
In 2005 the Sava Group created financing expenses in
the amount of €8.6 million, or 32.3 per cent less than in
the previous year. In the expense structure the major
part, or 70.7 per cent, had expenses for interest for hired
loans, 18.8 per cent were due to impairments in financial
investments, and the remaining 10.5 per cent were other
financing expenses.
The achieved financing income totalling €15.8 million
was 3.8 per cent lower than last year and was generated
by Sava d.d. in total.
Share in income of associates
Revenues from share in income of associates referred to
Gorenjska Banka d.d., Kranj and were created in the
amount of €19.6 million, which was 20.5 per cent more
than last year. €5.7 million or 29 per cent was paid as
dividends, the remaining sum of €13.9 million or 79.5
per cent being the rest of the attributable profit of
Gorenjska Banka d.d. for 2005 considering the equity
method.
(€ in millions)
2005 2004
Operating income without elimination of negative goodwill 7.0 5.1
Income 15.8 16.4
Elimination of negative goodwill 1.3 14.5
Share in income of associates 19.6 16.2
PRE-TAX PROFIT 43.7 52.2