Comment on Media Statements

Merkur has recently come into focus of the Slovene media. Unfortunately the incomplete and unsubstantiated information causes concern about Merkur Group.

According to the statement in the media, Merkur has been visited by police officers, which the company has to deny. So far no police officers have been seen or received at Merkur. It is true, however, that in spring the police was informed on the contents of the loan contract between Merkur and NLB. According to the media, the contract is disputable. The contract, however, is a regular loan contract that allows Merkur to continue its regular business operations. The Police Directorate from Ljubljana informed the press that they had been collecting information on Merkur business operations. Merkur has not been informed what kind of information they are looking for. Merkur believes that all its business decisions comply with the law. 

The media have also exposed the sealing of the newly built Merkur sales centre in Vižmarje, Ljubljana. The sales centre meets all construction criteria. Unfortunately the building contractors have failed to submit the documentation on disposal of materials accumulated while preparing the foundations for the building. Merkur has been striving to obtain the missing documentation. So far Merkur has not received the information when the sales centre may open again. To prevent lay-offs, eighty employees have been temporarily sent to work to other sales centres. 

The take-over of Merkur has also been in focus. The majority stake has been acquired by one hundred top managers of Merkur. They have invested in Merkur to enable it to pursue its strategic objective independently and ensure sustained growth. A promise has been given to the employees that they would be able to buy Merkur shares and become co-owners of the company. The promise will be kept, but its fulfilment has to be postponed for the time being.  

The company has not publicly announced the reductions in top managerial salaries. We believe that there are not so many managers in the company that the reduction of their salaries – one hundred in all – could substantially contribute to the increase in the salaries of the 5,000 employees. This year members of the Management Board will not be paid any extras, and their regular payments will be reduced by up to 50 %. Other managers in Merkur will earn up to 30 % less than the year before. This measure is symbolic and will not have any real effect on business performance.

The employees in Merkur Group intend to strive for good performance and further fulfilment of strategic goals and growth. In 2009, Merkur has invested EUR 80 million in construction of new sales centres. This places the company among the top investors who have been able to invest in their growth despite the unfavourable global trends.