PRESENTATION OF THE GORENJE GROUP

Slovenian Equity Market Day 2012 

Ljubljana, Slovenia, 24 April 2012 

Gorenje representatives: 

► Mr. Peter Groznik, CFO 

► Mr. Štefan Kuhar, Executive Director for 

Finance, Tax and Assets Management 

► Mrs. Bojana Rojc, Head of IR 

1 

PRESENTATION OF THE GORENJE GROUP

One of the leading European manufacturers of products for home 

Core business 

• Products and services for Home (MDA, SDA, HVAC, kitchen 

furniture) 

Gorenje Group 

• Main company Gorenje, d.d., and 102 Companies (79 

International) 

Number of employees 

• 10.932 / 2011 

Consolidated revenue 

• 1.4 bn EUR / 2011 

2 

Global presence 

• 70 Countries Worldwide, mostly in Europe, USA, Australia, 

Near and Far East 

Own production 

• Slovenia, Sweden, Czech Rep., Serbia, Finland 

Export 

• 95% of sales 

Legend: 

MDA (major domestic appliances) 

SDA (small domestic appliances) 

HVAC (heating, ventilation, air conditioning)

Only the very best from Gorenje … already 62 years! 

1950-1960 

1961-1970 

1971-1980 

► 1950 founded in the village of Gorenje 

► 1958 manufacturing stoves 

► Production of washing machines and refrigerators 

► 1961 first exports to Germany 

► Acquisition of companies with synergy to the core business 

► Setting-up own distribution network in Western Europe 

1981-1990 ► Major Focus on core business - household appliances 

1991-1996 

1997-2005 

2006-2007 

2008 - 2009 

2010 

2011 

► Restructuring and ownership transformation 

► Strong expansion into foreign markets 

► Gorenje, d.d., becomes a Public Company 

► Investing into new products and technology 

► Strategicaly Gorenje has infused new life into its business doctrine familiarly known as: "Everything for Home“ 

► Acquisition of Mora Moravia, the cooking appliance manufacturer from the Czech Republic 

► Opening of the new refrigerator & freezer Plant in Valjevo, Serbia 

► New design of product lines Gorenje Pininfarina II; Gorenje Swarovski; Gorenje Ora-Ïto 

► Acquisition of Gorenje Surovina, d.d., Maribor, Slovenia 

► 15% capital increase and additional shares were listed on a prime market of Ljubljana Stock Exchange 

► New design of product lines Gorenje Pininfarina Black and Gorenje Ora-Ïto White 

► Acquisition of the company ATAG 

► New generation of cooking appliances;Innovative fridge freezer “Gorenje for iPod“ 

► Gorenje designed by Karim Rashid; Gorenje Retro Collection; Gorenje Simplicity 

► Acquisition of the company ASKO 

► Entering IFC, member of the World Bank into the ownership structure 

► Launching of the new brand name Gorenje+ 

► Start-up of the factory in Zaječar, Srbia 

► Confirmation of the new strategy 2015 

3

Public limited company since 1998 

Ten major shareholders No. of shares % 

KAPITALSKA DRUŽBA, D.D. 3,534,615 22.2207% 

Employees 

and former 

employees 

5.18% 

Private 

Individuals 

17.22% 

Treasury 

Stock 

0.76% 

Pension 

Fund 

22.91% 

IFC 1,876,876 11.7991% 

HOME PRODUCTS EUROPE B.V. 1,070,000 6.7267% 

NFD 1, delniški podsklad 820,045 5.1553% 

INGOR, d.o.o., & co. k.d. 794,473 4.9945% 

EECF AG 411,727 2.5884% 

RAIFFEISEN BANK AUSTRIA D.D. 375,889 2.3631% 

TRIGLAV VZAJEMNI SKLADI 297,090 1.8677% 

PROBANKA, d.d. 297,061 1.8675% 

4 

Financial 

Investors 

53.93% 

ERSTE GROUP BANK AG 222,204 1.3969% 

Top 10 Shareholders 9,699,980 60.9798% 

Other Shareholders 6,206,896 39.0202% 

Total* 15,906,876 100% 

 

 

 

Two-tier Corporate Governance System 

Supervisory Board: 6 Representatives of capital and 4 Representatives of employees 

Management Board: 6 Members 

121,311 Own Shares (0.7626%) 

 

Slovenian Corporate Governance Code 

*Ownership structure on 31 December 2011

With the new strategy changes to the Group organization 

Previous Gorenje Group organization: three divisions: 

HOME APPLIANCES 

HOME INTERIOR 

ECOLOGY, ENERGY, 

AND SERVICES 

1 - REFRIGERATION APPLIANCES (COLD APP.) 

2 - COOKING APPLIANCES (HOT APP.) 

3 - WASHING MACHINES, DRYERS, DISHWASHERS 

(WET APP.) 

COMPLEMENTARY PRODUCTS 

SUPPLEMENTARY PRODUCTS 

Water heaters, radiators, and air conditioners 

Kitchens 

Other furniture 

Ceramics 

Bathrooms 

Ecology 

Energy 

Tools and industrial 

equipment 

Trade 

Engineering 

Brokerage 

Tourism 

5 

Change in the new organization: 

Changes in the new 

organization: 

Changes in the new 

organization: 

A wide product range – major domestic appliances, small 

domesticappliances, HVAC, services 

. 

Gorenje's core activity is manufacturing HOME products; in 2015, it 

will represent approximately 90% of total operations. 

• Focus on kitchen 

furniture 

• Preparing a new 

business model 

• field of ENERGY divested 

• further development of the 

field of ECOLOGY 

• SERVICES seen as portfolio 

investments.

Greater focus on core activities until 2015 

► The main activity amounted to 77% of revenues in 2011. 

► The growth of core activities to 90% of revenues by 2015. 

CORE ACTIVITY SUPPLEMENTARY PORTFOLIO INVESTMENTS 

HOME 

Products and services for the home 

ECOLOGY 

Ecology-related services 

OTHER 

6 

MDA (major domestic appliances) 

SDA (small domestic appliances) 

HVAC (heating, ventilation, air conditioning) 

SERVICES related to the home 

KITCHEN 

FURNITURE 

Comprehensive 

waste management 

Tool-making 

Engineering 

Hotels and hospitality 

services 

Trade 

Design services 

KEY ORIENTATION 

SUPPORT 

role

New strategy, new vision 

VISION 

TO BECOME WORLD BEST 

DESIGN DRIVEN INNOVATOR 

OF HOME PRODUCTS 

MISSION 

TO CREATE INNOVATIVE, DESIGN-DRIVEN PRODUCTS AND 

SERVICES THAT BRING SIMPLICITY TO OUR USERS. 

7 

AMBITION CREATIVITY RESPONSIBILITY HONESTY SIMPLICITY 

FUNDAMENTAL VALUES

Strategic goals - Home 

► Price index 29 European Countries increase for 2 p.p. per year till 2015 – MDA 8; 

► Target structure by markets in 2015 WE / EE /GLOBAL: 45 / 45 / 10; in 2010* (46 / 47 / 7) 

► 

Strengthening of position on new markets active presence (sales office) in 15 megacities 

► Share of concepts in Gorenje brand 25% (volume) till 2015 

► Product complexity reduction for 30% till 2013 

► Growth of SDA for 2 p.p. in structure till 2015 

► Growth of HVAC for 1.5 p.p. in structure till 2015 

8 

► 

New businesses up to 1% 2015 in HOME structure 

► Growth of Kitchen furniture from 11.5 MEUR 2010 to 23.5 MEUR 2015 

► 

Use of Gorenje Group Synergies 

WE…Western Europe 

EE…Eastern Europe 

GLOBAL…outside Europe

Why to focus to built in 

Freestanding business will be more and more 

competitive and less and less profitable – 

especially for Gorenje since we can not have 

same economy of scale and real LCC 

production 

Build-in business still driven by local habits 

and still less competitive 

HIGH DEBT means LOWER POWER to 

INVEST means NEED to FOCUS 

9 

BI in Gorenje Group has strong BI platforms 

innovative BI OVENS and HOBS, strong BI cooling 

platform, strong hoods platforms 

Currently BI categories in GorenjeGroup (hobs, 

hoods, ovens) – most profitable categories

Product portfolio strategies - MAKE or BUY 

Premium: existing / new premium platforms or buy 

Assure efficient 

make or buy 

process in order to 

assure 

competitiveness of 

the product range 

for all brands 

(in order to assure long-term competitiveness in premium 

segment we need to have own unique solutions/platforms) 

Mid+: existing platforms with added innovative features 

Mid: existing platforms or buy (with co-development) 

Budget: old generations or buy (off the shelve) 

CONCEPT: mid and mid+ platforms (make or buy) 

All MAKE or BUY decisions will be evaluated based on 

following criteria: 

1. Target cost needed 

2. Platform differentiation between budget, mid, premium 

segment 

3. Production utilization 

10

Multi-brand strategy to cover all price segments 

BUILT-IN 

PREMIUM 

SPECIALIST 

BUILT-IN 

SPECIALIST 

PREMIUM 

MID+ 

WET PREMIUM 

SPECIALIST 

BUILT-IN 

LOCAL 

SPECIALIST 

CONCEPTS 

MID 

11 

MAINSTREAM 

LOWER 

(BUDGET) 

SEGMENT 

BUDGET 

FREE 

STANDING 

LOCAL 

BUILT-IN (FREE 

STANDING) LOCAL 

LOWER 

(BUDGET) 

SEGMENT 

FOR BENELUX

Strategy by brands – Brand profiles 

Gorenje Group will serve all (price) segments of the market with multi-brand strategy 

Full range of premium BI selective expansion to 

WE, 2014 EE, high-end KRT 

NEW focus: premium WET, other products 

supportive role , selective expansion EE, global 

Full range of mid+ BI products, introduced 

D,A,CZ,SLO,UA,RU;SCAN, new markets 2013 

KRT specialist, 

12 

Main pan-European brand in portfolio, strong 

focus to Concepts, focus growth in mainstream 

(focus to BI segment, reducing cost in FS, 

implementing selective design driven 

innovations, reduction of complexity), develop 

sales of accessories 

Budget platforms, protective brand for SEE 

Adjusted product portfolio, brands will be 

developed&supported only if they can perform 

long-term sustainable profit

Europe domestic market, strengthening global presence till 2015 

11% market share in Finland 

10% market share in Denmark 

9% market share in Norway 

6% market share in Sweden 

Top 1 foreign brand in Germany 

7 % market share in Russia 

4% of the Group 

revenue comes 

from USA & 

Australia 

Leading brand 

in Slovenia & on 

the Balkan 

In Hong Kong luxury 

residential towers 

furnished with designer 

appliances 

13 

5% market share in the 

segment of dishwashers 

in Australia 

► Sales in 70 markets around the world: Europe = traditional domestic market, the USA, 

Australia, China, Middle East

Strategy markets 

RU 

NORDIC 

USA 

AUS 

ASKO 

P 

SLO 

CZ 

BIH 

UA 

RS 

GLOBAL 

MEGA 

CITIES 

GORENJE 

UA 

ASIA 

14 

RU 

I 

BENELUX 

ATAG 

F 

UK 

STRONG RESOURCES MID RESOURCES LOW RESOURCES 

Focus resources to markets with strong position (&profitability) or to markets that 

represent strategic priorities

The difference is built on design and innovation 

15

Awards for design, innovations and brand recognition 

Design: 

• BIO Design Award, 1979, 1996, 2002, 2006, 2008 

• DIDA - Delo Industrial Design Award, 1997 

• Plus X Award TM , 2004 - 2011 

• Red Dot Design Award, 2005, 2010, 2011 

• The Design Awards, 2006, 2010 

• Timeless Slovenian design 2011 for Simple&Logical 

• Design 2011 (The Month of Design) 

• Good Industrial Design Award 2010, 2011 

• Golden Link Award, 2006, 2008 

• Observeur Design 08 Award, 2007 

• Wallpaper nomination, 2008 

Innovation: 

• SCC Innovation Award, 2003 - 2009, 2010, 2011 

• Formatool Award, 2005, 2007, 2011 

• Hevreka!06 Award, 2006 

• Get Connected Product of the Year Award, 2006, 2010, 2011 

• Le Grand Prix de l'Innovation nomination, 2007 

• Podium de l'Innovation inomination, 2008 

• Grüner Stecker prize, 2010 

16 

Brand name: 

• Trend Award, 2005 

• Success Story Award, 2005 

• Superbrands, 2006, 2007 

• Trusted Brand, 2007, 2008, 2009, 2010, 2011 

• Eurobrand, 2007, 2008, 2009 

• SiBrand 2011 

• China Home Style Award, 2008

Awards for product excellence 

Oven with the innovative electronic control module - the world revolution in the management of 

household appliances 

17


Hob designer line Magna – Atag brand 

18 

3 Classic Line Dishwasher - Asko brand


Washing machine from Gorenje RedSet line 

19


Gorenje SensoCARE washing machine and Gorenje IQcook cooking hob 

20

Sales Structure of Major Domestic Appliances in Europe 2011 – MDA ( 9 Product Groups) 

EUROPE (Market) 

~63.7 m units 

-1.3% 

WEST EUROPE (Market) 

~87% (share of total market sales) 

-3.2% 

Belgium; 2% 

3% Austria ; 

Netherlan 

2% 

ds; 3% 

Poland; 

5% 

Skandinav 

ia*; 6% 

2% Others, 

7% 

2% 

Germany; 

19% 

France; 

15% 

Ohranjanje tržnih 

deležev Gorenja 

EAST EUROPE (Market) 

~22% (share of total market sales) 

+5.7% 

21 

GORENJE (West Europe)* 

~ 43% 

-3.0% 

Spain; 

6% 

Russia ; 

10% 

UK; 

10% 

Italy; 

11% 

GORENJE (East Europe) 

~ 57% 

-8.2% 

 

CECED Figures do not include sales of groups Atag & Asko 

MDA9 (Refrigerators, Freezers, Dishwashers, Washing Machines, Dryers, Freestanding Cookers, Built-in Ovens, Hobs, Hoods) 

wo. Microwave Ovens 

Members: BSH, Candy, Electrolux, Fagor -Brandt, Gorenje, Indesit, Liebherr, Whirlpool, Miele, Smeg 

Source: CECED

Benchmarking 

Competition in the home appliances industry worsened results compared to 2010 

Electrolux 

Whirlpool 

Indesit 

Arcelik 

Gorenje 

Sales: -4.4% 

(to 11,263 M €) 

EBIT: -44.4% 

(to 335 M €) 

Negative FCF 

(to -721 M €) 

Sales: +1.6% 

(to 13,417 M €) 

EBIT: -21.4% 

(to 569 M €) 

Negative FCF 

(to -40 M €) 

Sales: -1.8% 

(to 2,825 M €) 

EBIT: -18.2% 

(to 150 M €) 

Negative FCF 

(to -39 M €) 

Sales: +21.6% 

(to 3,624 M €) 

EBIT: +1.3% 

(to 278 M €) 

Negative FCF 

(to -60 M €) 

Sales: +2.9% 

(to 1,422 M €) 

EBIT: -15.3% 

(to 37 M €) 

Positive FCF 

(to +36 M €) 

Strong drop of 

EBIT and PDT, 

acquisition of 

Olympic Group 

and CTI, 

Adaptation of 

production 

capacity, 

Reduction of 

overhead costs. 

Strong drop of 

FCF, Aggressive 

actions taken to 

reduce fixed cost 

structure 

(N.America 

achieves 2X EBIT 

improvement, 

Significantly lower 

inventory levels). 

The negative 

effects of material 

costs and lower 

volume of 

demand on 

profitability, a 

negative FCF. 

Strong growth in 

sales, negative 

FCF, takeover 

Defy Appliances. 

Lower reduction 

in profitability 

regard to 

competition and 

positive FCF. 

22 

▼ Significant deterioration in the results compared with 2010, negative trend continued in Q4 2011 

▼ 

▼ 

All analyzed companies, except of Gorenje, have a negative FCF 

Adjustment of structural (fix) costs to the scale and structure of business activities.

Business performance 2011: Highlights 

in EUR million 2011 2010 2009 2008 

comparable 

2011 2010 

Change 

(%) 

Consolidated revenue 1,422.2 1,382.2 1,185.9 1,330.8 1,288.1 1,221.8 5.4% 

EBITDA 86.7 108.7 68.2 94.0 85.4 91.4 -6.6% 

EBITDA Margin, % 6.1% 7.9% 5.8% 7.1% 6.6% 7.5% / 

EBIT 36.5 56.4 12.1 36.9 41.1 41.9 -1.9% 

EBIT Margin, % 2.6% 4.1% 1.0% 2.8% 3.2% 3.4% / 

Profit before tax 11.1 22.5 -9.3 15.5 15.1 8.0 88.8% 

Net income 9.1 20.0 -12.2 10.2 11.3 4.9 130.6% 

ROS, % 0.6% 1.4% -1.0% 0.8% 0.9% 0.4% / 

Free cash flow (narrow)* 35.8 17.8 33.0 -45.1 18.4 7.2 154.7% 

Net financial debt** 382.5 401.2 425.1 463.7 388.5 377.6 2.9% 

Net financial debt / EBITDA 4.4 3.7 6.2 4.9 4.5 4.1 10.1% 

Earnings per share (in EUR) 0.57 1.34 -0.83 0.66 0.71 0.32 119.5% 

23 

* Profit after tax + depreciation and amortization expense – CAPEX + divestment –+ change in inventories –+ allowances for trade receivables –+ change in trade payables 

** Long-term financial liabilities + short-term financial liabilities – cash and cash equivalents

BUSINESS PERFORMANCE 2011: Events that affect the comparability of data 

Effect of the elimination of the Asko Group and disposal of Istrabenz Gorenje on the profitability of the Gorenje Group 

in MEUR 2011 2010 

comparable 

Q4 Q4 

Q4 Q4 

2011 2010 2011 2010 

2011 2010 

Revenue 1,422.2 1,382.2 362.1 416.4 1,288.1 1,221.8 331.9 323.2 

= Contribution margin (CM1) / gross 

margin 

534,2 525.4 133.3 144.0 464.7 491.1 118.2 122.9 

CM 1 37.6% 38.0% 36.8% 34.6% 36.1% 40.2% 35.6% 38.0% 

= Added value / AV 352.6 353.1 92.8 94.4 309.8 316.8 85.9 80.3 

AV in revenue 24.8% 25.5% 25.6% 22.7% 24.1% 25.9% 25.9% 24.8% 

= EBITDA 86.7 108.7 24.6 25.3 85.4 91.4 28.1 22.5 

EBITDA margin 6.1% 7.9% 6.8% 6.1% 6.6% 7.5% 8.5% 7.0% 

= EBIT 36.5 56.4 13.1 12,0 41.1 41.9 18.0 10.9 

EBIT margin 2.6% 4.1% 3.6% 2.9% 3.2% 3.4% 5.4% 3.4% 

= Profit for the period 9.1 20.0 1.3 3.2 11.3 4.9 3.1 1.5 

ROS 0.6% 1.4% 0.4% 0.8% 0.9% 0.4% 0.9% 0.5% 

24 

in MEUR 2011 2010 

comparable 

2010 

NET ASSETS 735.0 740.0 718.4 

Net current assets 470.5 463.0 451.6 

Net working capital 264.5 277.0 266.8 

Working capital 551.4 623.6 590.8 

- Current liabilities -286.9 -346.6 -324.0 

NET EQUITY INVESTED 735.0 740.0 718.4 

Equity 397.8 392.1 385.1 

Net debt equity 337.2 347.9 333.3 

Effect of disposal of Istrabenz Gorenje on the 

financial position of the Gorenje Group

Business Plan 2012: Goals 

Goal: 

STRENGTHENING THE PROFITABILITY – CASH FLOW GROWTH - REDUCING DEBT 

through the realization of the model of 

BUSINESS EXCELLENCE. 

► 

► 

Improving sales and diversifying geographically and product range; 

► 

Launching new products; 

Decreasing inventories and receivables - increasing free cash flow; 

► 

► 

► 

► 

Factoring and other activities to improve capital structure; 

Optimizing material costs, faster purchasing from LCC; 

Restructuring of Asko Group, HI Division, Trade companies; 

Restructuring of production companies, transfers of production 

► 

► 

Divesting of some real estate; 

► 

Reducing headcount; 

Exploring new listing locations; 

► Implementing new Strategy 2015. 

25

Business Plan 2012 – Highlights / Gorenje Group (1) 

MEUR B 2012 

Change 

vs. 2011 

Change 

vs. 2011 

comparable 

2011 

2011 

comparable 

Sales 1,391.4 -2.2% 5.6% 1,422.2 1,317.4 1,382.2 

CM 585.6 9.6% 10.4% 534.2 530.5 525.4 

% CM 42.1% / / 37.6% 40.3% 38.0% 

EBITDA 101.3 16.8% 17.6% 86.7 86.2 108.7 

2010 

% from sales 7.3% / / 6.1% 6.5% 7.9% 

EBIT 50.0 36.8% 37.1% 36.5 36.4 56.4 

26 

% from sales 3.6% / / 2.6% 2.8% 4.1% 

PBT 15.9 43.4% 60.9% 11.1 9.9 22.5 

% from sales 1.1% / / 0.8% 0.8% 1.6% 

PAT 13.4 47.2% 66.3% 9.1 8.1 20.0 

% from sales 1.0% / / 0.6% 0.6% 1.4% 

• B – Budget 

• CM - Contribution margin at the level of difference between sales 

revenue and costs of goods and material 

Comparable: In the base year 2011 are, to achieve comparability, eliminated the effects of sales Istrabenz Gorenje

Business Plan 2012 – Highlights / Gorenje Group (2) 

MEUR B 2012 

Change 

vs. 2011 

2011 

Change 

vs. 2010 

2010 

FCF / narrow 28.6 / 35.8 / 17.8 

Net debt 380.3 -0.6% 382.5 -4.7% 401.2 

27 

Net debt / EBITDA 3.8 -14.9% 4.4 19.5% 3.7 

Legend: 

FCF Narrow = NCF – Capex + Disinvestment +- Changes in Net Working Capital 

Net debt = Financial debt – Cash and Cash Equivalents 

Net debt / EBITDA = Net financial debt / EBITDA

Business Plan 2012: Sales by region in MEUR 

Region B 2012 

2011 

comparable 

Change 

W Europe 559.8 (40%) 520.7 (40%) +7.5% 

E/SE Europe 718.2 (52%) 701.7 (53%) +2.4% 

Other 113.4 (8%) 95.0 (7%) +19.4% 

28 

Total sales 1,391.4 1,317.4 +5.6% 

Comparable: In the year 2011 are, to achieve comparability, eliminated the effects of sales Istrabenz Gorenje

Business Plan 2012: Sales performance in MEUR 

Sales 

Group 

1,422.2 

-2.2% +5.6% 

1,317.4 

1,391.4 

2011 2011 comparable B 2012 

29 

13.9% 

1,202.4 

Sales 

HA 

1,055.8 1,055.8 

2011 2011 comparable B 2012 

B2012 

Business 

Segment 

Home 

As % of 

Group sales 

74.2% 80.1% 

86.4% 


Business Plan 2012: EBIT performance 

EBIT 

Margin 

2.6% 

2.8% 

3.6% 

+36.8% +37.1% 

EBIT 

(MEUR) 

36.5 36.4 

50.0 

30 

2011 2011 comparable B 2012 


Business Plan 2012 – EBITDA performance 

7.3% 

EBITDA 

Margin 

6.5% 

6.1% 

+16.8% +17.6% 

101.3 

EBITDA 

(MEUR) 

86.7 86.2 

31 

2011 2011 comparable B 2012 


Business Plan 2012 – PAT performance 

1.0% 

ROS 

0.6% 0.6% 

PAT 

(MEUR) 

9.1 8.1 

+47.2% +66.3% 

13.4 

32 

2011 2011 comparable B 2012 


Business Plan 2012 – FCF (narrow) performance 

MEUR B 2012 2011 2010 

PAT 13.4 9.1 20.0 

Amortization 51.3 50.2 52.2 

= NCF 64.7 59.3 72.3 

Capex -47.6 -47.5 -44.7 

Divestment 19.7 4.4 4.5 

NWC -8.2 19.6 -14.2 

* Inventories 8.6 12.0 -6.0 

* Trade receivables -11.8 50.4 -25.3 

* Trade payables -5.0 -42.8 17.1 

= FCF (Narrow) 28.6 35.8 17.8 

33 

Effects of CF optimization in 2011 to 2010: 

‒ Net cash flow by -12.9 MEUR / -17.9% 

− Capex by -2.8 MEUR / +6.3% 

− Divestment by -0.1 MEUR / -2.2% 

+ Inventories by +18.0 MEUR 

+ Trade receivables by +75.7 MEUR 

‒ Trade payables by +59.9 MEUR 

Effects of CF optimization in B2012 to 2011: 

+ Net cash flow by +5.4 MEUR / +9.1% 

‒ Capex by -0.1 MEUR / +0.2% 

+ Divestment by +15.3 MEUR 

− Inventories by -3.4 MEUR / -28.3% 

− Trade receivables by -62.2 MEUR 

+ Trade payables by +37.8 MEUR

Business Plan 2012 – Consolidated Balance Sheet 

MEUR 2010 2011 B2012 MEUR 2010 2011 B2012 

Net non-current 

assets 

463.0 470.5 438.9 Equity 392.1 397.8 409.3 

Inventories 257.6 245.6 240.1 Financial 

investments 

as % in sales 18.6% 17.3% 17.3% 

-53.3 -45.3 -48.9 

Trade receivables 306.3 255.9 281.1 Cash and cash 

equivalents 

as % in sales 22.2% 18.0% 20.2% 

-82.7 -101.6 -23.5 

34 

Trade payables -237.0 -194.2 -180.4 Financial liabilities 

total 

as % in sales 17.1% 13.7% 13.0% 

Net Working Capital 326.9 307.3 340.8 

as % in sales 23.6% 21.6% 24.5% 

Other current assets / 

liabilities 

-49.9 -42.8 -39.0 

483.9 484.1 403.8 

Net Debt 347.9 337.2 331.4 

Net Assets 740.0 735.0 740.7 

Net Invested 

Capital 

740.0 735.0 740.7

Strategic plan 2015: Why a new strategy 

► 

Changes in the environment 

• Due to the unstable economic environment stirred by the global financial 

crisis, the operating conditions have changed drastically relative to the time 

of announcement of the previous strategic plan (early 2010). 

► 

Changes at the Gorenje Group 

• In August 2010, the Group acquired the Asko Group – a Swedish home 

appliance manufacturer. 

35 

• In 2011, intensive activities were launched for divestment of non-core 

property and activities (disposal of interest in the company Istrabenz- 

Gorenje, divestments in France, Serbia etc.). 

► 

Adjustment to the requirements of effective management 

• Taking a medium-term view of the Gorenje Group operating performance.

Strategic plan 2015: Measures to adjust to the new circumstances 

1. Increase robustness to the effects financial crises 

► 

► 

► 

► 

Profitable increase in volume of business operations 

Short-term generation of value: increase in free cash flow 

Long-term generation of value: improvement in economic profit / EVA 

Debt management: improving the capacity of self-financing, divestment of noncore 

assets and activities, diversification of financing sources → possibility of 

listing the share in an international stock exchange. 

36 

2. Seizing the opportunities in the core industry 

► 

► 

► 

► 

► 

Simplifying/streamlining the operations – new organization. 

Looking for market niches (both in terms of geographical distribution and 

products) 

Even more focus on design and innovation 

Multi-brand strategy to cover all price segments 

A shift from pan-European to global presence, especially with niche products.

Strategic plan 2015: New Gorenje Group Business Model 

FOCUS 

HOME 

DIFFERENTIATION 

THROUGH DESIGN 

INNOVATION 

GLOBALIZATION 

STRATEGIC 

ALLIANCES 

R&D, SALES, 

PRODUCTION 

INTERNATIONAL 

DRIVEN 

PERMANENT 

CREATION OF VALUE 

FOR THE CUSTOMERS, 

SHAREHOLDERS, AND 

EMPLOYEES 

BRAND/ 

PRODUCT 

PORTFOLIO 

37 

RESEARCH AND 

DEVELOPMENT 

NICHE 

MANAGEMENT 

INDUSTRIAL 

KNOW-HOW 

DESIGN 

SCOPE 

& 

FLEXIBILITY 

CULTURE 

OPERATIONAL EXCELLENCE

Strategic plan 2015: Gorenje Group key strategic goals 

Profitability of 

operating volume 

Creating value, 

short term 

FCF (narrow) at least 

EUR 40 million, 

in 2015 

Turnover (sales 

revenue) 

> EUR 1.5 billion in 

2015 

(CAGR 3.8 %)* 

Share of brands/ 

concepts in the 

premium price 

segment 

over 25% in 2015 

Creating value, 

long term 

EBIT above 5% in 

2015 

MAJOR 

STRATEGIC GOALS 

Turnover (sales 

revenue) beyond 

Europe 

more than EUR 150 

million 

in 2015 

38 

Debt 

management 

Net debt/EBITDA 

not more than 3.0 

from 2014 on 

* Base year 2011 (eliminated effect of 

Istrabenz-Gorenje divestment) 

New business model, 

organizational 

structure/human 

resource management, 

and corporate 

governance 

Core activity 

shall represent 

approximately 90% 

in 2015 

Financial/business goals 

Markets/marketing goals 

Business platforms

Strategic plan 2015: Specific goal s by 2015 

1 

Higher 

volume of 

operations 

2 

Improved 

profitability 

3 

Improving 

robustness to 

financial 

crisis 

39 

• Sales 

͌ 1.5 bn € 

3.5% CAGR 

> 5.0% 

• EBIT Margin 

• Net debt / 

EBITDA 

max. 3.0

Strategy without implementation is an illusion and therefore … 

► 

Annual update of the strategy. 

► 

The Management Board shall monitor 

strategy implementation on a monthly 

basis: 

► 

KPI, key strategic goals 

► 

Key implementation projects 

40 

► 

The Management Board shall report at 

each Supervisory Board session 

about the strategy implementation 

activities. 

STRATEGIC 

PLANNING 

► 

Annual review and adjustment of 

strategy – once per year, to be 

performed by the Strategic Business 

Council.

Factors affecting forward-looking statements 

This Presentation contains “forward-looking” statements and information – that is, statements related to future, not 

past, events, within the meaning of the Securities Market Act and the Rules and Regulations of the Ljubljana Stock 

Exchange. These statements may be identified by words such as “expects,” “looks forward to,” “anticipates,” 

“intends,” “plans,” “believes,” “seeks,” “estimates,” “will,” “project” or words of similar meaning. Such statements 

include, among others, the financial goals and targets of parent company Gorenje, d.d., and Gorenje Group for 

future periods and future business and financial plans. These statements are based on current expectations and 

are subject to risks and uncertainties that could cause actual results to differ materially due to a variety of factors. A 

variety of factors, many of which are beyond Gorenje's control, affect Gorenje’s operations, performance, business 

strategy and results and could cause the actual results, performance or achievements of Gorenje to be materially 

different from any future results, performance or achievements that may be expressed or implied by such forwardlooking 

statements. These factors include, but may not be limited to the following: consumer demand and market 

conditions in the geographical areas and industries in which Gorenje Group operates, effects of currency 

fluctuations, competitive pressures to reduce prices, significant loss of business from major retailers, the possibility 

that customers may delay the conversion of booked orders into revenue or that prices will decline as a result of 

continued adverse market conditions to a greater extent than currently anticipated by Gorenje's management, the 

success in developing new products and marketing initiatives, developments in product liability litigation, progress in 

achieving operational and capital efficiency goals, the success in identifying growth opportunities and acquisition 

candidates and the integration of these opportunities with existing businesses, continued volatility and a further 

deterioration of the capital markets, progress in achieving structural and supply-chain reorganization goals. Should 

one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual 

results may vary materially from those described in the relevant forward-looking statement as expected, anticipated, 

intended, planned, believed, sought, estimated or projected. Gorenje does not intend or assume any obligation to 

update or revise these forward-looking statements in light of developments which differ from those anticipated. 

41

PRESENTATION OF THE GORENJE GROUP

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