Publication of the unaudited, unconsolidated financial statements for the 2009 financial year

KD Group, finančna družba, d.d., Celovška cesta 206, Ljubljana, hereby publishes the company’s unaudited, unconsolidated financial statements for the 2009 financial year in accordance with the applicable legislation.

The unaudited, unconsolidated financial statements of KD Group d.d. for 2009 are attached.

Information on KD Group’s operations in 2009

As part of measures to adapt its operations to the challenging conditions in 2009, KD Group began to withdraw from markets in Ukraine, Romania, Bulgaria and Serbia – countries that were severely affected by the global crisis, where the impact was felt most acutely by companies in the financial sector and where the consequences were the most severe. KD Group’s loss of EUR 53 million in 2009 was primarily due to impairment losses on investments by subsidiaries in the aforementioned foreign markets.

In 2009, all of KD Group’s largest subsidiaries in Slovenia operated at a profit and will continue to do so in 2010, when KD Group, as the parent company, is forecasting a profit of EUR 12 million. The performance of the KD Group and all its subsidiaries in the first three months of 2010 is in line with plans, whilst the majority of financial liabilities are long-term.

Following the impairment of investments, KD Group still has EUR 162 million in capital and is regularly meeting all its obligations in 2010 whilst steadily reducing its debt. All subsidiaries within the KD Group exceed the prescribed capital adequacy requirements. More detailed explanations of individual items in the financial statements and consolidated data on the KD Group’s operations will be available in the annual report, which will be published by the end of April.

By adopting a conservative approach to the valuation of investments in the 2009 financial year, the KD Group has laid a solid foundation for the further development of the profitable businesses of its subsidiaries and the group as a whole. The KD Group’s largest subsidiaries are: Adriatic Slovenica, the third-largest insurance company in Slovenia; KD Skladi, the largest investment fund manager; and KD Življenje, a rapidly growing life insurance company. In addition, an important part of the KD Group is its newest company, KD Banka, a private banking institution that rounds off the range of financial services on offer.

From 31 March 2010 onwards, this notice will also be published on the company’s website, www.kd-group.com, under ‘Public Announcements’.


KD Group d.d.