FORIGROUP BUSINESS & SUSTAINABILITY MORE THAN 25 YEARS BUSINESS & SUSTAINABILITY REPORT

Transcription

1 FORIGROUP BUSINESS & SUSTAINABILITY REPORT MORE THAN 25 YEARS BUSINESS & SUSTAINABILITY REPORT

2 PUBLISHER SKUPINA FORI PREŠERNOVA 1A 3320 VELENJE SLOVENIA P F INFO@FORIGROUP.COM EDITOR KATJA FORŠTNER DESIGN & PRINT MIRSAD BURGIC EUROGRAF D.O.O. CIRCULATION 1000 COPIES

3 TABLE OF CONTENTS LETTER FROM THE CEO 4 WHO WE ARE 6 FINANCIAL HIGHLIGHTS 8 TECHNICAL TEXTILE DIVISION 16 PLASTIC METAL DIVISION 21 FAIRS 24 ENVIRONMENTAL MANAGEMENT SYSTEM 28 PEOPLE MAKE SUCCESS 30 60th ANNIVERSARY 32

4 THOUGHTS FROM OUR CHAIRMAN In 2017, the profits and operating resultsof FORI Group companies, present in almost 50 countries around the world, will realise the majority of their planned targets, financial indicators and commitments, win new markets and strengthen their position at the largest cable and automotive fairs in the world. We are consolidating our presence in the automotive industry by manufacturing complex semi-manufactured products for the interior of vehicles. We are focused on seat segments, manufacturing products from sheet metal, plastic and textile. We have been a developing supplier for technical textile products for several years and our aim is to become a developing supplier also in the plastics and sheet metal segment. This year we will generate almost 47 million EUR of income, which is 12 % more than in the preceding year. With revenues and proceeds from regular operations and disinvestment we are significantly reducing the total debt of the group. We estimate that in the following three years, with the planned revenues, optimisation of all operation costs of and financing, organisational structure of all the employees, the FORI Group will continue to strengthen the financial stability, required to cope with the competition on the international market, recognising that in fact change is the only constant. We are constantly adapting to such change with the help of education following the world trends and staff training, who has been, with its hard work and desire to grow, the heart of our Group. One of the biggest milestones in 2017 was the launch of production of Fori Products Ser for the manufacture of medical rollators and sale of Kamtech Gmbh (quarry and asphalt base). With a divestiture of the latter we moved towards our objectives with a desire to focus on technical textile, metal and plastics and we are strengthening our already well established position at a global level. In 2017, we celebrated 60 years of operation of Tekstilna tovarna Okroglica, d. d., and the 10th anniversary of Qingdao Sinositec, we are also marking over 164 years of operation of Fori Textile Serbia. A 30 year anniversary of the FORI Group is also just around the corner. For us these are not merely celebrations. For us this is a confirmation that the 4 [ BUSINESS AND SUSTAINBILITY REPORT 2017 ]

5 world has accepted us and that we are successful at what we do. We were able to adapt to the market, we do business honestly and with all our hearts and we follow our dreams. This is our award at all these anniversaries. I would like to thank all those who have contributed to this success and marked these important anniversaries with their honest and hard work. I would also like to thank our business partners that we were able to prove to them through all these years that we stand behind our high quality products and hard work and that we are willing to adapt to world trends. Milan Forštner CEO FORI Group [ BUSINESS AND SUSTAINBILITY REPORT 2017 ] 5

6 WHO WE ARE FORI Group is an overarching organizatin, integrating several business systems and activities: production, trade and engineering. Our trademark is being opened to new business opportunities and international operation, while the Group s key objectives are strategic and capitalties within the Group as well as wfficient economy and organization. 42,1 716 milion consolidated sales income in 2017 employees 56.6 milion consolidated total assets in 2017 By 2020 we plan sales income growth to 51.0 milion It is not so much what we do, but how we think. With integrated delivery ASSOCIATED ENTERPRISES we are trying to surpass the expectations of our customers. Our Mission To have Flexible Organization of Research and Development Ideas, and strive to achieve customer satisfaction with the cables and in the car. Our Vision FOR RUS Russia FORI TEXTILE SER FORI PRODUCTS SER Serbia, Kragujevac 6 [ BUSINESS AND SUSTAINBILIT Y REPORT 2017 ] SINOSITEC China, Qingdao Our goal is to become a recognizable World OEM supplier and trademark owner for the white goods industry, OEM supplier for the automotive industry and cable industry. In the future we want to double our added value per employee and improve our image with higher standards as well as unique investments.

7 Program of technical textiles and cable absorbers Program of technical textiles and cable absorbers Program of technical textiles Technical textiles and waterblocking tapes Technical textiles and waterblocking tapes Automotive textile Binding Separating tapes for cable industry Sewing Binding Separating tapes for cable industry Cutting Other Carbon paste Products from metal for healthcare industry Products from plastic for healthcare industry Injection moulding Sales per business division The net sales of FORI Group will have grown by 2020 mainly in the automotive and cable programme, at a rate of 8% annually and with focus on markets in Europe, Asia, the Middle East, America and Russia. sales by business divison % sales by CUSTOMER SEGMENT % 5% 18% 14% Textil Plastic and Metal 82% Together 82% 18% 100% 4% 23% 54% Cabel industry Automotive industry Integrated solutions Plastic and white goods Other Together [ BUSINESS AND SUSTAINBILIT Y REPORT 2017 ] 7 22,6% 54,4% 3,7% 14,4% 4,9% 100,0%

8 FINANCIAL HIGHLIGHTS The net sales of FORI Group will have grown by 2020 mainly in the automotive and cable programme with focus on markets in Asia, the Middle East, America and Russia. In the coming years, our focus will be to increase profitability and added value in all programmes. On this basis of this healthy growth, we will reduce our debt and lower our net financial debt to EBITDA. 82% Textil Plastic and Metal Together 82% 18% 100% Cabel industry Automotive industry Integrated solutions Plastic and white goods Other Together 22,6% 54,4% 3,7% 14,4% 4,9% 100,0% 54% 18% 23% 14% 4% sales by business divison % 8 [ BUSINESS AND SUSTAINBILIT Y REPORT 2017 ] 5% sales by CUSTOMER SEGMENT %

9 SALES BY COUNTRIES Slovenia 22,29% Czech Republic 10,55% Germany 9,41% Italy 8,62% Hungary 6,70% Slovakia 5,61% Turkey 3,92% Poland 3,64% K.S.A. 3,41% Russia 3,27% Serbia 2,84% Spain 2,38% China 2,03% Others 9,37% Total 94,04% sales by COUNTRIES % [ BUSINESS AND SUSTAINBILIT Y REPORT 2017 ] 9

10 ASSETS AND LIABILITIES In the coming years our focus will be to increase profitability and added value in all programmes. On the basis of healthy growth we will reduce our financial debt and improve financial stability of FORI Group. 57% 2016 LONG-TERM ASSETS 43% SHORT-TERM ASSETS 60% 2017 LONG-TERM ASSETS 40% SHORT-TERM ASSETS Term structure of Assets IN % LONG-TERM ASSETS 35% SHORT-TERM ASSETS 35% 30% CAPITAL 31% 2017 LONG-TERM ASSETS 39% SHORT-TERM ASSETS 30% CAPITAL Term structure of LIABILITIES IN % 10 [ BUSINESS AND SUSTAINBILIT Y REPORT 2017 ]

11 FINANCIAL LIABILITIES TO THE BANKS By improving the maturity of funding, we assure the financial stability of FORI Group. SHORT-TERM FINANCIAL LIABILITIES 17% LONG-TERM FINANCIAL LIABILITIES % FINANCI SHORT-TERM FINANCIAL LIABILITIES FINANCIAL LIABILITIES IN AL L IAB ILI TIE 17% S IN 2017 LONG-TERM FINANCIAL LIABILITIES 18 mio 83% 17,89 17 MIO 17,88 16,25 16 MIO 15 MIO 14,25 14 MIO 13 MIO 12,59 12 MIO FINANCIAL LIABILITIES TO BANKS (in mio ) [ BUSINESS AND SUSTAINBILIT Y REPORT 2017 ] 11

12 Consolidated Revenue Consolidated Revenue IN MIO [ ] Year Consolidated Revenue in mio The consolidated revenue of FORI Group will have grown by 2020 mainly in the automotive and cable programme. Planned Consolidated Revenue IN MIO [ ] Year PLANNED Consolidated Revenue in mio 12 [ BUSINESS AND SUSTAINBILIT Y REPORT 2017 ]

13 EBITDA Consolidated Consolidated EBITDA in REVENUE % IN 2017 Conso lida ted E BIT DA 1 4,5% in R EVENUE CONSOLIDATED EBITDA IN REVENUE Created EBITDA allows us to finance working capital, repayment of debt and money for investment. Till 2020 we will reach EUR 7 million of consolidated EBITDA. 17 % I N % Consolidated REVENUE 7 7, ,6 6,1 6,3 6,6 Planned Consolidated EBITDA IN MIO [ ] Year ,6 6,1 6,3 6,6 7, PLANNED Consolidated EBITDA in mio [ BUSINESS AND SUSTAINBILIT Y REPORT 2017 ] 13

14 Consolidated CAPEX We take care of the development and new investments of FORI Group We will devote from 1,7 milion EUR to 1,8 milion EUR per year to this part of business. 1,62 1,70 1,80 1, Consolidated PLANNED CAPEX IN MIO [ ] Year ,62 1,70 1,80 1, PLANNED CAPEX in mio 14 [ BUSINESS AND SUSTAINBILIT Y REPORT 2017 ]

15 is the result of our cost efficiency and productivity. Consolidated EBIT Consolidated EBIT IN MIO [ ] Year ,0 4,1 4,3 4,5 4,5 4,3 4,0 4, With increasing Revenues and consequently EBITDA we can reduce the debts to banks YearS Revenue Debt to banks EBITDA 17,89 17,88 16,25 14,25 12,59 5,6 6,1 6,3 6,6 7 [ BUSINESS AND SUSTAINBILIT Y REPORT 2017 ] 15

16 TECHNICAL TEXTILE DIVISION FORI Group is the headquarters for the integration of several business systems and activities: production, trade and engineering. Our trademarks represent new internationally renowned business opportunities for FORI Group in different industries: automotive, cable, medical, aviation and construction. FORI Group are always the people who make the news. They make us recognizable by their reliability, flexibility, innovation and constant concern of environment. It is not so much what we do, but how we think. With the integration of ASSOCIATED ENTERPRISES we try to exceed the expectations of our customers and reach our goals together. The Technical Textile Division consists of 4 brands: FORI foam FORI scrim FORI thermofilm FORI fabric FORI wadding FORI nonwoven FORI woven FORI absorbent FORI net FORI buffering FORI foam FORI scrim FORI fabric FORI wadding FORI foam FORI net FORI felt FORI foil AUTOMOTIVE INDUSTRY Production plants: Slovenia, Serbia Technologies: Laminating Coating Cutting Sewing CABLE INDUSTRY Production plants: Slovenia, Serbia, Russia, China Technologies: Laminating Coating Cutting CHILDREN SEATS, HIGH LEVEL OF LIFE Production plants: Slovenia, Serbia Technologies: Laminating Coating Cutting Sewing BUILDING CONSTRUCTION INDUSTRY Production plants: Slovenia, Serbia Technologies: Laminating Coating Cutting Car interior products Children seats, high level of life products Building construction products

17 IN TECHNICAL TEXTILE DIVISION LAMINATION TECHNOLOGIES & CUTTING: INPUT: different materials as PU foam, nonwovens, needle punched, felts, watte, webs, foils, knitted scrims, woven fabrics, face fabrics, vinyl, leather, 3D mesh materials, fillers, flame retardant FAR materials, low emission and recycled materials, acoustic and barrier materials, absorbents, membranes... VISIO CONTROL SYSTEM LAMINATION ACRYLIC REACTIVE ADHESIVES NEWS IN 2018 ADVANTAGES 100% quality control prevention of mistakes Incrase on OEE Customer and supplier support NEW selfadhesive products LOW EMISSION products increase flexibility PRODUCTION PROCESSES: LAMINATION Flame lamination Hot Melt lamination Web lamination Cut parts lamination Thermoadhesive coating Superabsorbent lamination Self-adhesive lamination SEWING Seat covers Headrests Armrests Mattresses covers Sheets Pads CUTTING Pieces, Tapes, Spools OUTPUT bi-laminates, tri-laminates, multi-laminates in rolls, laminated cut pieces. Final products as seat covers, headrest covers, armrest covers, laminates for soundproofing, insulation laminates against moisture, door panel laminates, floor laminates, roof laminates, mattresses covers, sorbent pads... AUTOMOTIVE industry - interiors covers door panel roof armrest seat belt gearbox cover floor

18 AIRWAY INDUSTRY - INTERIORS: RAILWAY INDUSTRY - INTERIORS: MARINE INDUSTRY - INTERIORS: 18 [ BUSINESS AND SUSTAINBILITY REPORT 2017 ]

19 IN TECHNICAL TEXTILE DIVISION Products for the Cable industry LAMINATION TECHNOLOGIES & CUTTING: PRODUCTION PROCESSES Coating with carbon black LAMINATION Superabsorbent lamination, dry lamination, coating lamination CUTTING tapes, spools OUTPUT products: Tapes and yarns for different applications in cables: power cable LV, HV, MV, EHV, telecommunication, optical fiber cable.. IN TECHNICAL TEXTILE DIVISION Laminates for Building Construction Insulation industry LAMINATION TECHNOLOGIES & CUTTING: INPUT nonwovens, needle punched materials, felts, absorbent powder, paper, foils, glue..

20 PRODUCTION PROCESSES COATING & LAMINATION Self-adhesive coating, transfer lamination CUTTING Rolls, sheets, pads OUTPUT Self-adhesive laminates, bi-laminates, tri-laminates. LAMINATION TECHNOLOGIES & CUTTING & SEWING: IN TECHNICAL TEXTILE DIVISION Sorbents and Covers for Mattressesfor for a high quality of living people INPUT: non-wovens, fabrics, needle punched materials, felts, membranes, absorbent powder, foils, glue, knitted fabrics, jacquard knitted materials, PU foams... PRODUCTION PROCESSES: COATING & LAMINATION: Flame lamination Hot Melt lamination Web lamination Cut parts lamination Thermoadhesive coating Superabsorbent lamination Self-adhesive lamination with high absorbtion capacity CUTTING: rolls or cut parts, sheets, pads SEWING: of covers, pads, sheets OUTPUT: sorbent covers, matresses covers, covers for therapeutic tables, beds, covers for wheelchairs 20 [ BUSINESS AND SUSTAINBILITY REPORT 2017 ]

21 PLASTIC METAL DIVISION Metal processing At our plant in Velenje we established metal processing; cutting, press cutting (punching), bending, forming deep drawing, welding, brushing (grinding) and also the final phase assembly of metal plastics components and small household appliances. Input materials Stainless steel (INOX) ordinary and zincked (warm and electro) metal sheet, aluminum sheet, plastic and other semi-products. Additional services: Assembly (line), powder coating (painting), washing, thermal treatment. Cutting Guillotine cutting of sheet metal up to 4mm thick and 2000mm wide. We also operate the special edge trimming and cutting machine from OMERA R1000. Press Cutting This is done by large CNC punching machines allowing sheet metal to be cut into arbitrary shapes (Arcade 212, Vipros 255,Europe 245 machines). Maximum thickness of sheet metal: 3.0mm. Basic sheet size: 1250x2500mm. Bending For the bending of sheet metal we use two bending machines. The larger of the two has a bending force of 500kN at a bending length of 2000mm. The smaller machine has a 250kN bending force at a bending length of 1200mm. Both machines are from Amada Schiavi. Forming - deep drawing The deep drawing of sheet material is performed using our big hydraulic press OMERA which has 6300kN ram force and 3000 kn hold force (table dimension 1600x1300mm, stroke of press 800m) and three smaller hydraulic presses (1250,1600 and 3150 kn ram force, all OMERA brand). However, smaller items of wire and sheet metal can be pressed on smaller eccentric presses with kN ram force. [ BUSINESS AND SUSTAINBILITY REPORT 2017 ] 21

22 PLASTIC METAL DIVISION Input materials: ABS, PS, PP, PC, PBT, PA6... Additional services: Assembly, powder coating of plastic parts (painting), tool making, tamp prints and serigraphy. Plastics Taking into consideration the basic strategic development, which demands an integrated and complex offer, we also developed a plastic programme, with an emphasis on plastic processing and plastic injection. In the segment of plastic injection, we have several years of experience in the manufacturing of components for the needs of manufacturers of small and large components for the automotive industry. As additional services we also offer assembly and the varnishing of plastic products. Injection moulding The thermo plastic materials our process technology features computer controlled production using 14 KRAUSSMAFFEI injection moulding machines which have up to approx. 3600g capacity and a clamping force from 40 to 800 tons. The machines were purchased in succession mainly from 2002 onwards. All big machines (above 300 tons) are equipped with SEPRO automatic manipulators. 22 [ BUSINESS AND SUSTAINBILITY REPORT 2017 ]

23 The shaping of various types of sheet metal is performed on 9 hydraulic and eccentric presses manufactured by OMERA, GRABENER, PRESSE ROSS. The pressing forces of these machines vary depending on their size, from 1250 to 6300 kn. All hydraulic presses have a retaining cushion to retain the sheet metal formats during the deep drawing operation with a maximum force of 600 to 3000 kn. Toolmaking In our own tool shop, we design and produce tools intended for shaping all types of sheet metal (Stainless Fe (INOX) ordinary and zincked (warm and electro) metal sheet). When making tools, we fully conform to the customers requirements and needs. Due to limitations of production capacities, we have decided to hire subcontractors, tool making specialists, to manufacture plastic product injection tools. Design and Developement In any industrial area, taking into account the customer wishes, we offer an execution of integrated development solutions within which we guarantee cooperation in joint projects, from the design conception of products or assemblies to the phase of laying concepts for individual assemblies or their components. The engineering tools most often used in the concept laying process are Pro/Engineer and Catia. In case of the execution of a more extensive specific mechanical analyses of products is needed, we seek collaboration with external specialised expert institutions. NET SALES PER DIVISION % 18% 82% Textil 82% Plastic and Metal 18% Together 100% [ BUSINESS AND SUSTAINBILITY REPORT 2017 ] 23

24 TRADE FAIRS As every year so far, we have attended various trade fairs around the world to promote our products, broaden our sales network and present new technology guidelines. We have deepened our business relations with our partners and presented them innovations in the cable and automotive sector. During the last year we were faced with a significant increase in the prices of intermediate goods. For this reason we set as our aim to extend our source channels in We visited various trade fairs in Asia and Europe, as well as optimised our products, with the aim to be even more competitive and stronger on the market. CABEX RUSSIA Top Tapes is becoming a recognisable trademark in Russia. We have in particular strengthened our position in this country with our company FOR RUS, as we provide fast and flexible delivery of the desired goods. MEE 2018 DUBAI We believe that our participation at this trade fair is very important, as there are more cable companies every year, who wish to expand their sales in the Middle East. We have again obtained important information and contacts of potential buyers from Europe and Asia. ASTANA 2017 KAZAKHSTAN Our presentation in Astana was also successful. This is a new area for us and we wish to obtain buyers from the nearby markets, we are particularly interested in the markets of Uzbekistan and Ukraine. INTERWIRE ATLANTA 2017 USA In cooperation with our partner we again participated in the trade fair in the USA. Irrespective of the fact that currently the markets are inaccessible, we have a strategy how to realise potential projects. IEE IRAN We are no longer a new player at that INTERNATIONAL ELECTRICITY EXHIBITION in Iran. We are well known to the buyers and we can take pride in the fact that the visit was a record achievement. AUTOMOTIVE INTERIORS EXPO DEUTCHLAND In June 2017 Fori Group for the third time in a row at the Automotive Interiors EXPO 2017, successfully continues the marketing positioning of the Fori Group in the automotive industry. 24 [ BUSINESS AND SUSTAINBILITY REPORT 2017 ]

25 TECHTEXTIL FRANKFURT 2017 Fori Group is successfully presenting at all the world expo fairs of technical textiles. In 2017, for the third time we successfully presented ourselves at Techtextil Frankfurt 2017 and again acquired important suppliers and customers in the field of technical textiles. CEE AUTOMOTIVE FORUM PRAGUE In 2017, Fori Group successfully presented itself at the CEE Conference in Prague for the third time not only as a participant, but also as a sponsor of the conference. Significant contacts were exchanged to further strengthen the Fori Group marketing position. [ BUSINESS AND SUSTAINBILITY REPORT 2017 ] 25

26 RUSSIAN AUTOMOTIVE FORUM MOSCOW For several years in a row, Fori Group also presented and participated in the Russian Automotive Forum in Moscow in The outlook for the Russian market is promising, as the long-term growth of the market is predicted. Also, from the point of view of the potential entry of Fori Group on the Russian market, in the field of automotive industry, the starting points are promising. We acquired new contacts, deepened our partnership relations with known contacts and we are just in the realization phase of the first project. to be seen, if they were successful also through the newly obtained business. In 2018 we will present ourselves also in the following trade fairs: Wire Dusseldorf, Cabex, IEE, Wire Shanghai and we plan to visit various trade fairs for intermediate goods. We regard our presentations at the fairs a successful. Of course, it remains 26 [ BUSINESS AND SUSTAINBILITY REPORT 2017 ]

27 ENVIRONMENTAL MANAGEMENT SYSTEM Within the operational framework of the companies in FORI Group, we are acutely aware of the need and concern for environmental protection, assuring health and safety in the workplace for our employees and fire prevention measures with which we protect the property of our owners and job positions of our employees. The management of each individual company has committed itself to include these fundamental safety principles in all operational processes of their company. The management of each company which has received the ISO certificate shows the commitment to the Quality Management Handbook which are presented on next pages. [ BUSINESS AND SUSTAINBILITY REPORT 2017 ] 27

28 ENVIRONMENTAL PROTECTION POLICIES AND OBJECTIVES In the commitment of FORI Group management, we stated that we want to be known for our constant efforts to decrease the burden on the environment. This objective has been further modified with the fundamental operational strategy of the environmental management system and commitment that the health and safety of employees and fire prevention are permanently included in all business processes. A large emphasis will also be put on comprehensive prevention activities in the field (health and safety of employees, environmental protection, property protection etc.). In order to achieve this, we, together with our employees, business partners and the general public, focus all activities in the implementation of environmental and other legislation as well as individual customer requirements and thus reduce the negative impact of our activities on the environment. In doing this we will follow the environmental protection policies and objectives: 1. Have quality processes, products and services which satisfy the demands of the customer and environmental legislation. 2. Make efforts to reduce the burden on the environment by choosing appropriate technology and with the implementation of activities to prevent pollution and other influences on the environment. 3. Assure the implementation of the entire environmental management system, which the management monitor and evaluate in the Management review. 28 [ BUSINESS AND SUSTAINBILITY REPORT 2017 ]

29 4. Promptly and appropriately take measures in the case that any deviation or irregularity in the field of environmental protection occurs. 5. Train employees for the correct and safe approach in the fields of environmental protection, handling chemicals, safety in the workplace and fire prevention. 6. Implement all activities which assure health and safety in the workplace in all associated companies. 7. Implement all activities which assure fire prevention in all associated companies. 8. Monitor and meet legal requirements of all associated companies. 9. Notify employees of the efficiency of the environmental management system operations. 10. Notify the interested internal and external public on operations in the field of environmental protection. Preventive safety in the workplace (Health and Safety, Fire Safety and Environmental management system), have been a part of the strategic objectives of the FORI Group for some years: No accidents in the workplace, No irregular/ hazardous events and No fires. [ BUSINESS AND SUSTAINBILITY REPORT 2017 ] 29

30 PEOPLE MAKE SUCCESS We are constantly striving for our employees to feel good while they work, and extend that feeling into good results, which are the reflection of a satisfied employee. All our efforts and investment in the well-being of employees is seen in positive results; for several years we have recorded a minimum percentage of absenteeism. In addition to the reward system, we also organize social gatherings and gatherings for children where we have an opportunity to enjoy ourselves and have fun together outside of the workplace. This also gives us a chance to take care of our inter-relationships and build on the team spirit within the company, which is positively reflected in all areas of operation. ENGAGING EMPLOYEES In our company we support everyone who wants to achieve more on their career path. We give employees the opportunity to prove themselves in different positions as well as different countries. This gives them a greater degree of self-confidence in addition to wider knowledge of the environment in which both we and our buyers operate.

31 Both individuals and teams have the opportunity to achieve their goals using the knowledge of all our companies and attend our internal strategic conferences and social events, where we exchange our experiences and support and motivate each other. In 2017, we organised in total 2360 EDUCATIONAL HOURS for our employees. We are happy that we have an increasingly stronger wish from all companies for education, inclusion in innovation and intercommunication. 83% OF EMPLOYEES ARE SATISFIED IN THEIR JOB AWARD FOR MOST DEPENDABLE EMPLOYEE Every year at FORI Group we present the award for the Most Dependable Employee in all our companies. Each year we choose the best employee from each company following criteria based on the quality of their work, their reliability and their dedication to top results.

32 60th ANNIVERSARY OF THE OKROGLICA TEXTILE PLANT, D. D., A SUBSIDIARY OF THE FORI GROUP On Saturday, 25. November 2017, the Okroglica textile plant, a subsidiary of the Fori Group situated in the Renče-Vogrsko municipality, celebrated its venerated 60th anniversary. The jubilee was marked with an Open Day for current employees, their families as well as for retired employees The formal reception was accompanied by the velvet voices of academically trained opera singers, and the guests were shown a short film outlining the history of the company, beginning with the distant year of 1957, when the plant was known as Tkalnica Dombrava. From those meager starts with 17 employees who produced cotton fabrics, the company has grown into a plant that produces high-quality laminated fabric products that find their way into every fifth automobile in Europe. In addition to their success in the automotive industry, the company also boasts a world-renowned brand in the cable industry, Top Tapes, as well as successful expansions of their own products under the brands ilam, HygLam and CarLa, which allow for a wide selection of technologically accomplished integrated solutions. With an EBITDA of 13% in pure earnings, the Okroglica textile plant stands at the very top of the textile sector. The owners and management are well aware that the continued existence and success of the company requires a great deal of effort, ideas, perseverance and, most of all, the skilled hands and knowledge of the laborers. This is why the celebration of the anniversary was primarily dedicated to the workers of the Okroglica textile plant, including the retired ones, who had many an exciting and interesting memory to share. Each and every single one of them is part of the success, the recognisability and the reputation of the company both nationally and internationally, which is why, on this joyous occasion, we handed out employee awards and recognitions to the most reliable workers and to all who contributed to the efforts that made the company what it is today a source of pride, joy and optimism. 32 [ BUSINESS AND SUSTAINBILITY REPORT 2017 ]

33 Mr. Igor Varl, the former CEO of the company, also joined us at the festivities. He is widely regarded as the person who popularized the TopTapes brand. In his speech, he remembered his years at the plant and pointed out that honest work is always rewarded. The formal part of the festivities presented the company s efficiency and excellent business results and projections for a bright future, and the company s employees also extended their thanks to the Chairman of the Fori Group, Mr. Milan Forštner. They praised his vision, tenacity and his extraordinary work ethic, which is an example to all. Under the guidance of the Fori Group, the Okroglica textile plant has become strong and relentless in its rise towards the very top of the international textile industry. The company has ambitious goals for the future, but thanks to the excellent team at their disposal, these goals are absolutely achievable. 250 guests attended the celebration, which also included a performance by the local wind orchestra. PROMOTING OUR CONTRY We are delighted to present the beauty of Slovenia that shines from its natural and cultural heritage at every opportunity as well as delight our guests with our rich and diverse cuisine. This year we brought a slice of Slovenian culture to the Düsseldorf fair where we met with most of the partners. Julian Alps, the Vršič pass, Slovenia

34 FORIGROUP Milan Forštner CEO Fori Group Ivica Forštner CEO Consultant Mitja Forštner Member of board of Fori Group Martin Forštner Member of board of Fori Group Nada Jurko Executive Manager of Finance Saša Brilej Manager of General Legal Affairs Sector Patricija Korošec Cable division director Daliborka Milićevič General Manager at FORI TEXTILE SER, d.o.o. Matjaž Lenassi Director Fori Products SER, d.o.o. Dejan Subotić Director FOR-RUS Žan Učakar General Manager at Qingdao Sinositec 34 [ BUSINESS AND SUSTAINBILITY REPORT 2017 ]

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