presentation of the gorenje group

Mr. Franjo Bobinac 

President of the Management 

Board and CEO 

PRESENTATION 

OF THE GORENJE GROUP 

Slovenian equity markets Day 2010 

Hotel Mons Ljubljana, 11 May 2010

CONTENTS 

• COMPANY PROFILE OF GORENJE GROUP 

• GORENJE GROUP VISION 

• ANALYSIS OF THE ECONOMY AND THE MARKETS 

2 

• GORENJE GROUP AUDITED RESULTS 2009 AND BUDGET 2010 

• STRATEGIC PLAN FOR THE PERIOD 2010 - 2013

PRESENTATION OF THE GORENJE GROUP 

ORIGINATING FROM SLOVENIA, ACTING THROUGHOUT THE EUROPE ... 

CORE BUSINESS 

• HOME APPLIANCES 

GORENJE GROUP 

• Main company Gorenje, d.d., and 88 Companies (66 

International) 

EXPORT 

• 90% of sales 

EUROPEAN MARKET SHARE 

• 4% 

3 

REPRESENTED IN 

• 70 Countries Worldwide, mostly in Europe 

SALES UNDER OWN BRAND 

NAMES 

• 85% 

KEY NUMBERS 

• NO. OF EMPLOYEES: 10,907 

• CONSOLIDATED REVENUE: EUR 1.2 bn (2009) 

• 2.9 m units of own production (2009)


WHO WE ARE AND WHAT WE ARE DOING … 

HOME APPLIANCES 

HOME INTERIOR 

ECOLOGY, ENERGY 

AND SERVICES 

1 - COOLING 

2 - COOKING 

3 - WASHING & DRYING 

• Complementary products 

• Supplementary products 

• Water heaters 

• Kitchen 

• Other furniture 

• Ceramics 

• Bathrooms 

• Environment protection 

and recycling 

• Energy trading 

• Trade & Services 

4 

• Tools & Ind. Equipment 

78 % 

4 % 

18 %


PRODUCT PORTFOLIO ~ COMPLETE OFFER OF PRODUCTS FOR HOME 

• HOUSEHOLD APPLIANCES 

• COOLING 

• BUILD-IN 

• FREE STANDING 

• WINE / BEVERAGE CHILLERS 

• COOKING 

• BUILD-IN OVENS 

• HOBS 

• HOODS 

• MICROWAVES 

• WASHING AND DRYING 

• WASHING MACHINES UP TO 2000 RPM 

• DRYERS 

• DISHWASHERS 

• SMALL HOUSEHOLD APPLIANCES 

• WATER HEATERS 

• CONSUMER ELECTRONICS 

5


COMPLETE RANGE OF HIGH QUALITY PRODUCTS ... 

COOLING 

• 0.6 m units; Velenje, Slovenia 

• 0.4 m units; Valjevo, Serbia 

Velenje 

WASHING&DRYING 


COOKING 


• 0.3 m units, Mora, Czech Republic 

6 

TOTAL 

• 2.9 m units of large 

household appliances in 2009 

Mora Moravia 

Valjevo 

WATER HEATERS 

• Location Ljubljana Slovenia 

• Location Stara Pazova, Serbia 

Ljubljana 

Stara Pazova


STRONG HOME APPLIANCES SALES NETWORK 

• 33 sales companies / representative offices present in all European markets 

• Own warehouses in key markets 

• Strong after-sale support 

• Own retail network /franchise in Slovenia, Croatia, Serbia, Czech rep. and Turkey 

• Strong educational support to business partners (central and local) 

PRESENT IN ALL DISTRIBUTION CHANNELS IN DIFFERENT EUROPEAN MARKETS 

• Good relationship with international distribution chains (multiples, buying chains,…) – also due to strong 

position in Eastern Europe 

7


MARKET POSITION AND GEOGRAPHICAL PRESENCE OF GORENJE GROUP SALES 

• AMONG TOP 10 IN ALL MARKETS IN WESTERN EUROPE 

• AMONG TOP 3 IN MOST OF THE MARKETS IN EASTERN EUROPE 

• SALES ONLY UNDER OWN BRANDS (EE) 

EU 

60% 

SOUTH-EASTERN EUROPE 

Gorenje – Leading brand name; 50%+ market share; 

Excellent recognition; Good reputation 

EASTERN EUROPE 

One of the leading brands on the market 

Market share 4% - 30% 

RUSSIA, UKRAINE, CZECH REP., SLOVAKIA, 

POLAND, HUNGARY, BOLGARIA, … 

8 

4% 

36% 

WESTERN EUROPE 

Among top brands on almost all markets 

GERMANY: 4% market share; over 75% under own 

brand name 

THE NETHERLANDS: market share - brand name Atag, 

Pelgrim, Etna > 30% 

BELGIUM: market share - brand name Atag 10% 

SCANDINAVIA: Denmark market share 10% 

AUSTRIA: market share over 5% 

FRANCE: brand name Gorenje and Sidex


BRAND PROFILES 

PAN-EUROPEAN BRAND 

• Present in all distribution channels 

• Strong focus to design (for affordable price) 

9 

• Differentiation (products for specific life-style), Innovation 

• Whole range of home appliances 

• Strategy of design / special lines (co-branded, mainstream)



PREMIUM BRAND 

QUICK TREND FOLLOWER 

VALUE FOR MONEY 

• Strong market presence in Benelux market 

• Selective expansion to other markets 

• Highly established Brand in kitchen studios 

retail 

• Leading in gas technology with the best 

performing burner technology 

• Regional brands – BENELUX 

• Further development of regional brands 

• No expansion to other markets 

10



• Strong regional player in 

cooking/kitchen appliances 

• Main markets: Czech Republic, 

Slovakia 

• Quality products for reasonable 

price 

• Mainly cooker brand in 

Greece 

• Mid end products 

• Mainly France 

• Focus to budget segment of the 

market 

• Protection of Gorenje brand in 

budget segment 

11


BRAND NAMES POSITIONING 

12

CONTENTS 




13 




GORENJE GROUP VISION 

WE WANT TO BECOME THE MOST INNOVATIVE DESIGN MINDED 

HOME APPLIANCE CREATOR DEVOTED TO SUSTAINABLE DEVELOPMENT 

AND ABLE TO FLEXIBLY ADAPT TO CUSTOMER NEEDS! 

14


HOW TO LIVE THE VISON 

15 

First design line Gorenje Pininfarina in 2000, 

second in 2005 

In 2008, launch of limited edition Gorenje 

Pininfarina Black 

www.gorenjepininfarina.com



16 

In 2007, introduction of new design line 

Gorenje Ora-Ïto 

In 2008, launch of limited edition 

Gorenje Ora-Ïto White 

www.gorenje-oraito.com



17 

Fridge freezer Gorenje Made with CRYSTALLIZED TM - Swarovski elements 

sold in Moscow for USD 110,000 in 2006 

www.gorenje.com/inspires



18 

SmarTable-one of the most innovative product in household appliances in 2005 

www.smar-table.com



19 

Gorenje for iPod 2008



20 

Design concept QUBE, new vision of household appliances in 2007



21 

In 2009 launching of new generation of cooking appliances 

www.gorenje.com/newgenerationcooking



Portrait of Nika Zupanc 

22 

In 2009 worldwide premiere in Milan of the Mrs. Dalloway mini hot plate


HOME APPLIANCES @ IFA 2009 FAIR, BERLIN 

• The spotlights with the global icon of industrial design, Karim Rashid, 

which resulted the brand new star collection "GORENJE DESIGNED BY 

KARIM RASHID" 

• GORENJE RETRO COLLECTION: Chic, Vintage or Funky. New Image 

of Perfection and Energy Efficiency A++ 

• Gorenje introduced a thoroughly revamped line of household appliances 

for kitchen and bathroom, named GORENJE SIMPLICITY. 

• Gorenje is presenting a new HOME’S COMMUNICATION HUB - 

MICROSOFT SURFACE - TOUCH THE FUTURE 

23



24 

Gorenje designd by Karim 2009, with innovative LED – MoodLight 

(for changing the colour of the appliances)



25 

RETRO COLLECTION, new colours 2009 

www.gorenje.com/retro



26 

Simplicity line 2009, easy to use, good value for money 

www.gorenje.com/simplicity


AWARDS FOR DESIGN, INNOVATIONS AND BRAND RECOGNITION 

DESIGN: 

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

• Delo Industrial Design Award, 1997 

• Plus X Award TM , 2004, 2005, 2006, 2007, 2008, 2009 

• Red Dot Design Award, 2005 

• The Designer Manufacturer's Award, 2006 

• Golden Link Award, 2006, 2008 

• Observeur 08 Design Award, 2007 

• Wallpaper nomination, 2008 

INNOVATION: 

• SCC Innovation Awards, 2003, 2004, 2005, 2007, 2008, 2009 

(Slovenian Chamber of Commerce) 

• Formatool Award, 2005, 2007 

• Hevreka!06 Award, 2006 

• Get Connected Product of the Year Award, 2006 

• Le Grand Prix de l'Innovation nomination, 2007 

• Podium de l'Innovation nomination, 2008 

27 

GORENJE BRAND: 

• Trend Award, 2005 

• Success Story Award, 2005 

• Superbrands, 2006, 2007 

• Trusted Brand, 2007, 2008, 2009 

• Eurobrand, 2007, 2008, 2009 

• China Home Style Award, 2008


28 

http://study.eurobrand.cc/

CONTENTS 




29 




THE MAJOR NON-OECD COUNTRIES WILL LEAD THE RECOVERY 

30 

1. The non-OECD region is a weighted average, using 2005 GDP weights and PPPs of Brazil, China, the Russian 

Federation and India, which together accounted for more than half of non-OECD output in 2005. 

Source: OECDEconomic Outlook, Paris, 19 November 2009


A MODERATE RECOVERY IS FORESEEN IN THE MAIN OECD REGIONS 

31 

Source: OECDEconomic Outlook, Paris, 19 November 2009


CRUDE OIL PRICE DEVELOPMENTS 

The price of the Brent crude oil increased in 2009 by 72.15% 

(30.11.09) 

$ 45.58 

31.12.08 

Presumption: Oil price in 2009 and in 

2010 at the level of 75 USD/barrel, in 2011 

increase to 80 USD/barrel 

32 

2008 

2009 

(Umar – Autumn Outlook)


PRICE DEVELOPMENTS OF COLD ROLLED STEEL IN 2009 

Prices has been in November in average lower by 10% compared to December 2008 

Dec. 08 

•Germany 510 €/t 

•France 510 €/t 

•Italy 480 €/t 

•Germany 465 €/t 

•France 455 €/t 

•Italy 430 €/t 

33 

2007 

2008 2009 

Key Product Region 

Price in 2008 % CONTRACT Gorenje 

2008 2009 

France CR coil France 455 – 510 = - 55 €/t - 10,7% 540 €/t 425 €/t 

Germany CR coil Germany 465 – 510 = - 45 €/t - 8,8% 540 €/t 425 €/t 

Italy CR coil Italy 430 – 480 = - 50 €/t -10,4% 540 €/t 425 €/t


SALES UNITS GROWTH BY COUNTRIES 2009/2008 – MDA (9 PRODUCT GROUPS) 

WEST EUROPE: -7.1% EAST EUROPE: -25.6% 

EUROPE: -11.3% 

UK 

-16.6% 

Spain 

-14.2% 

Greece 

-15.2% 

Skandinavia* 

-8.7% 

Portugal 

-12.1% 

Netherlands 

-11.6% 

Switzerland 

-3.3% 

France 

-5.5% 

Italy 

-4.2% 

Germany 

0.0% 

Belgium 

-1.4% 

Austria 

10.1% 

Ukraine 

-40.7% 

Romania 

-44.5% 

Latvia 

-39.1% 

Estonia 

-38.6% 

Russia 

-31.2% 

Bulgaria 

-30.0% 

Slovakia 

-25.4% 

Lithuania 

-22.5% 

Hungary 

-21.9% 

Croatia 

-22.2% 

Slovenia 

-9.3% 

Czech Rep. 

-12.3% 

Poland 

-9.1% 

Source: CECED 

34


SALES UNITS GROWTH BY COUNTRIES Q4 2009/Q4 2008 – MDA (9 PRODUCT GROUPS) 

UK 

-10.8% 

Netherlands 

-10.0% 

Spain 

-7.5% 

Greece 

-8.3% 

WEST EUROPE: -1.1% EAST EUROPE: -16.2% 

EUROPE: -4.7% 

Switzerland 

-0.3% 

Portugal 

0.6% 

Italy 

1.2% 

Germany 

2.4% 

Skandinavia* 

5.0% 

Latvia 

-45.3% 

Slovakia 

-32.3% 

Romania 

-34.8% 

Hungary 

-27.0% 

Poland 

-22.7% 

Lithuania 

-18.1% 

Estonia 

-17.4% 

Russia 

-12.4% 

Slovenia 

-6.6% 

Ukraine 

10.8% 

35 

France 

2.5% 

Belgium 

3.4% 

Austria 

16.4% 

Czech Rep. 

-8.5% 

Croatia 

-14.7% 

Bulgaria 

-5.5% 

Source: CECED


SALES STRUCTURE OF MAJOR DOMESTIC APPLIANCES IN EUROPE - MDA (9 PRODUCT GROUPS) 

EUROPE (Market) 

~63.7 m (units) 

-11.3% (change in 2009) 

WEST EUROPE (Market) 

~70% (share of total market sales) 

-7.1% (change in 2009) 

GORENJE (West Europe) 

~ 40% 

+0.1% 

Skandinavia, 

6% 

Others, 7% 

2% 2% 2% 

AU, 2% 

BE, 2% 

NDL, 3% 

PL, 5% 

RU, 

7% 

ES, 

8% 

UK, 11% 

GER, 18% 

FR, 15% 

IT, 11% 

Ohranjanje tržnih 

deležev Gorenja 

EAST EUROPE (Market) 

~30% (share of total market sales) 

-25.6% (change in 2009) 

GORENJE (East Europe) 

~ 60% 

-23.5% 

36 

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

wo. Microwave Ovens 

Others: Ukraine, Portugal, Hungary, Romania, Slovakia, Croatia, Bulgaria, Slovenia, Lithuania, Latvia, Estonia 

Source: CECED


SALES REVENUE STRUCTURE BY GEOGRAPHICAL SEGMENT 

37


PRODUCTION STRUCTURE IN UNITS BY LOCATIONS 

2004 

2009 

Czech 

Rep. 

12% 

Serbia 

14% 

38 

Slovenia 

100% 

Slovenia 

74%

CONTENTS 




39 



TEUR 


CONSOLIDATED REVENUE OF THE GORENJE GROUP 

1,330,753 

400,000 

380,000 

360,000 

340,000 

320,000 

300,000 

280,000 

260,000 

240,000 

220,000 

200,000 

-10.9% 

303,700 

1,185,937 

+4.9% 

315,465 

1,244,037 

2008 2009 Plan 2010 

372,861 

• Growth of the volume of business activities in Q3 and 

338,727 

Q4 

• Adaptations to modified behaviour in the consumption 

• Negative impacts of the crisis in the markets of Eastern 

and SE Europe 

• increase in sales in markets of Western and Northern 

Europe 

• Positive impact of annual sales volume of the merged 

company Atag 

5.6% 10.8% 

286,613 281,328 

20.1% 

297,871 

320,125 

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 

5.5% 

40 

Consolidated Revenue developments by Quarters 

*Compared to the same period last year

TEUR 


EBITDA AND EBITDA MARGIN OF THE GORENJE GROUP 

120,000 

100,000 

80,000 

7.1% 

27.5%* 

+43.4% 

5.8% 

7.9% 

9.0% 

8.0% 

7.0% 

6.0% 

• Strong drop of EBITDA in 1H 2009 

60,000 

40,000 

20,000 

94,014 

68,199 

97,764 

5.0% 

4.0% 

3.0% 

2.0% 

1.0% 

• Growth in Q4 exceeded the level in 2008 

0 

0.0% 

2008 2009 Plan 2010 

5.2% 

8.4% 

41 

28,000 

23,000 

25,588 

21,641 

23,959 

22,826 

37.2% 

22,724 

24,747 

18,000 

72.1% 

13,593 

13,000 

8,000 

7,135 

3,000 

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 

EBITDA developments by Quarters 


TEUR 


EBIT AND EBIT MARGIN OF THE GORENJE GROUP 

• Structural changes at the product and the market 

50,000 

45,000 

40,000 

35,000 

30,000 

25,000 

20,000 

15,000 

10,000 

5,000 

0 

2.8% 

36,893 

3.6% 

+270.4% 

67.1%* 

45,005 

1.0% 

12,149 

4.0% 

3.5% 

3.0% 

2.5% 

2.0% 

1.5% 

1.0% 

0.5% 

0.0% 

level 

• The strongest drop in Q1, last two quarters positive 

o Restructuring and optimizing in sales part 

o Cost optimization 

o Adapting to productivity 

• Growth in last two quarters 2009 will continue into 

the year 2010 

2008 2009 Plan 2010 

31.8% 

42 

14.2% 

15,000 

10,000 

11,429 

7,270 

9,412 8,782 

161.5% 

106.6% 

8,079 

11,578 

5,000 

0 

-5,000 

-10,000 

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 

-7,029 

-479 

EBIT developments by Quarters 


TEUR 


NET PROFIT OF THE GORENJE GROUP 

15,000 

10,000 

5,000 

0 

-5,000 

-10,000 

-15,000 

0.8% 

0.8% 

160.2%* 

182.5% 

10,181 

10,086 

2008 2009 Plan 2010 

-12,232 

-1.0% 

1.0% 

0.8% 

0.6% 

0.4% 

0.2% 

0.0% 

-0.2% 

-0.4% 

-0.6% 

-0.8% 

-1.0% 

-1.2% 

• Financial result at a same level to that of 

2008 

• Profit before tax: EUR -9.3 m 

• Due to the taxation of those companies 

within the Group which had achieved 

positive results, the net loss increased to 

EUR 12.2 m 

43 

52.9% 

144.6% 

10,000 

5,000 

5,353 

2,798 

7,273 

375.4%* 216.3% 

3,427 

2,336 

0 

-5,000 

-10,000 

-15,000 

-20,000 

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 

-5,243 

-14,742 

-3,253 

Net Profit developments by Quarters 


TEUR 


FREE CASH FLOW OF THE GORENJE GROUP 

• Objective: Positive Free Cash Flow 

40,000 

30,000 

33,022 

25.9% 

24,477 

o negative net operating profitability 

o Investing in necessary development 

20,000 

10,000 

0 

-10,000 

-20,000 

173.2%* 

2008 2009 Plan 2010 

segments 

o lowering the financial burden of operations 

o significant reduction of net current assets 

-30,000 

-40,000 

-50,000 

-45,121 

• an improvement in the amount of EUR 78.1 m 

compared to 2008 

44 

194.2% 

198.1% 

21.5% 

60,000 

40,000 

20,000 

46,655 

12.1%* 

19,085 21,209 

36,616 

0 

-20,000 

-40,000 

-60,000 

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 

-20,251 -21,621 

-49,904 

-43,888 

Free Cash Flow developments by Quarters 



FREE CASH FLOW OF THE GORENJE GROUP 

45

In EUR million 


GORENJE INVESTED HEAVILY IN THE PAST FOR THE FUTURE! 

Investments (lhs) 

CAPEX as % of Sales (rhs) 

120.0 

12.8% 

14.0% 

100.0 

12.0% 

80.0 

60.0 

40.0 

20.0 

8.4% 8.2% 

61.8 65.7 

108.1 

7.7% 

69.9 

5.5% 

55.4 

6.4% 

5.7% 5.8% 

71.1 74.1 76.8 

2.4% 2.3% 

28.7 28.8 

10.0% 

8.0% 

6.0% 

4.0% 

2.0% 

46 

0.0 

2001 2002 2003 2004 2005 2006 2007 2008 2009 Plan 

2010 

0.0% 

EUR 611.6 million

in TEUR 


MOVEMENTS OF THE FINISH GOODS INVENTORIES OF HOME APPLIANCES DIVISION 

130,000 

120,000 

110,000 

100,000 

47 

90,000 

-31.5 % 

(32.6 m EUR) 

-30.4 % 

(31 m EUR) 

80,000 

monthly 

growth/ 

decrease 

70,000 

Jan 08 Feb 08 Mar 08 Apr 08 Maj 08 Jun 08 Jul 08 Avg 08 Sep 08 Okt 08 Nov 08Dec 08 Jan 09 Feb 09 Mar 09 Apr 09 Maj 09 Jun 09 Jul 09 Avg 09 Sep 09 Okt 09 Nov 09Dec 09 

1.2% 3.3% 1.8% 2.5% 8.4% -11.1% -9.0% 0.3% 5.0% 1.6% -4.0% -4.2% -3.4% 4.9% -1.9% -4.2% -7.7% -14.2% -2.6% -0.1% 14.0% -1.1% -12.2%


NWC OF THE GORENJE GROUP 

273.4 

23.1% 

16.6% 

-196.3 

2009 

251.7 

21.2% 

218.0 

18.4% 

291.4 

21.9% 

48 

16.8% 

-223.7 

2008 

262.0 

19.7% 

253.0 

19.0% 

-300.0 -200.0 -100.0 0.0 100.0 200.0 300.0 400.0 

NWC Trade payables Receivables Inventories


SHORT AND LONG TERM LOANS OF THE GORENJE GROUP 

31 Dec. 2008 

31.12.2009 

31.12.2010 

LT 

Loans, 

46.2% 

ST 

Loans, 

53.8% 

LT 

Loans, 

54.4% 

ST 

Loans, 

45.6% 

LT 

Loans, 

57.3% 

ST 

Loans, 

42.7% 

49 

in EUR thousand 31 Dec. 2008 % 31 Dec. 2009 % 

Plan 

31 Dec. 2010 

% 

LT Loans 216,312 46.2% 234.661 54.4% 241,600 57.3% 

ST Loans 251,902 53.8% 196.356 45.6% 180,085 42.7% 

TOTAL LOANS 468,214 431.017 421,685 

• Continuing of the financing sources restructuring 

• Debt restructuring – 2009/2010


EMPLOYEES 

11,432 

-4.6% 

-525 

10,907 

-3.4% 

-372 

11,323 

-5.7% 

-648 -4.4% 

-469 

10,675 

10,535 

10,206 

2008 2009 Plan 2010 

No.of employees/average 

2008 2009 Plan 2010 

No.of employees/final 

50 

11,800 

11,600 

11,400 

11,200 

11,000 

10,800 

10,600 

10,400 

11,268 11,236 

11,657 

11,567 

1.9% 

-212 3.0% 

-335 

11,056 

10,901 10,846 10,825 

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 

7.0% 

-811 

6.4% 

-742 

Average number of employees developments by Quarters 



PLANNED INCOME STATEMENT OF THE GORENJE GROUP 

in EUR thousand 

Plan 

2010 

2009 2008 

10/09 

% 

09/08 

% 

Consolidated net sales 1,244,037 1,185,937 1,330,753 4.9% -10.9% 

EBITDA 97,764 68,199 94,014 43.4% -27.5% 

EBITDA Margin (%) 7.9% 5.8% 7.1% / / 

EBIT 45,005 12,149 36,893 270.4% -67.1% 

51 

EBIT Margin (%) 3.6% 1.0% 2.8% / / 

Net profit or loss 10,086 -12,232 10,181 -182.5% -220.1% 

Free cash flow 24,477 33,022 -45,121 -25.9% +173.2%


SUMMARY - OBJECTIVES FOR 2010 

PROFITABILITY & FREE CASH FLOW 

INCREASING MARKET 

SHARES 

KEEPING PRODUCTIVE 

WORKING PLACES 

REVENUE 

COST 

MANAGEMENT 

CASH FLOW 

RISK 

MANAGEMENT 

52 

Innovative sales 

& marketing 

Decrease of 

labour costs 

Working capital 

optimization 

Emphasis on 

financial risks 

New markets, 

new customers 

Optimization of 

supply chain 

Reducing 

product 

complexity 

Debt portfolio 

restructuring 

New business 

opportunities 

Process 

optimization 

projects 

Selective 

investments


PLANNED INCOME STATEMENT OF THE GORENJE GROUP 

In EUR thousand 

Q1 

2010 

Q1 

2009 

Plan 2010 2010/09 

2010/ 

Pl.2010 

Consolidated revenue 290,951 286,613 1,244,037 101.5 23.4 

EBITDA 21,083 7,135 97,764 295.5 21.6 

EBITDA Margin 7.2% 2.5% 7.9% 

EBIT 7,767 -7,029 45,005 - 17.3 

EBIT Margin 2.7% -2.5% 3.6% 

Net profit 517 -14,742 10,086 - 5.1 

ROS (net return on sales) 0.2% -5.1% 0.8% 

53

CONTENTS 




54 




STARTING POINTS FOR STRATEGIC PLANNING 

• Basic approaches to strategic planning are bottom-up and top-down. 

• Plan does not include positive or negative effects of: 

o 

o 

o 

o 

divestment of material and financial assets; 

mergers and acquisitions; 

transfers of (parts of) business activities from the parent company to LCC and 

equity increase at the parent company. 

55 

• Effects of the equity increase are not included; irrespective of that activity is estimate for the first 

half of 2010 (as the source for M&A, restructuring of the current business activities and 

production and for the new activities within division of ecology and energy).


BASIC STRATEGIC ORIENTATIONS OF THE GORENJE GROUP 

sales of upmarket (high-end) products and services, with high profit margins within 

our core activity (HA and HI) through systematic approach to brand management, 

innovation, and design – achieving brand repositioning and higher margins; 

attaining process excellence and the resulting cost efficiency in all fields of our 

operations; 

promoting activities in low costs countries (LCC), cutting the share of administrative 

labour costs in VA of the core business and improving the product economies of 

scale while reducing its complexity; 

56 

focusing sales on markets with fast growth rate (Brazil, Russia, China, …); 

Focus on free cash flow and on risk management.


KEY OPERATIVE GOALS OF THE GORENJE GROUP BY 2013: 

EBIT 

Margin 

Value 

added per 

employee 

≥ EUR 40 

thousand 

Basic 

financial 

ratios 

Higher 

than 

competitor 

average 

Positive 

economic 

profit 

(premium 

above 

WACC) 

57 

5 – 6 % 

1,550 

Planned consolidated revenue of Gorenje Group in EUR million 

1,500 

1,450 

1,400 

1,350 

1,300 

1,493 

1,250 

1,381 

1,200 

1,150 

1,186 

1,244 

1,303 

1,100 

2009 2010 2011 2012 2013


58 

For any further investor information, please contact 

Mrs. Bojana Rojc, IR Officer: 

• Direct line: + 386 3 899 1345; Mobile: + 386 

51 351 706; 

• Fax: + 386 3 899 2527; 

• E-mail: bojana.rojc@gorenje.si or visit the 

Gorenje Group Web-site: www.gorenje.com


ONLY THE VERY BEST FROM GORENJE … ALREADY 60 YEARS! 

1950-1960 

• 1950 founded in the village of Gorenje 

• 1958 manufacturing stoves 

• Production of washing machines and refrigerators 

1961-1970 

• 1961 first exports to Germany 

• Acquisition of companies with synergy to the core business 

1971-1980 

• Setting-up own distribution network in Western Europe 

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

• Restructuring and ownership transformation 

1991-1996 

• Strong expansion into foreign markets 

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

• Investing into new products and technology 

1997-2005 • 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 

2006-2007 • Acquisition of Surovina, d.d., Maribor 

• 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 

2008 

• HOME APPLIANCES @ IFA 2008 FAIR, BERLIN: New generation of cooking appliances; Innovative 

fridge freezer “Gorenje for iPod“ 

• Mini hot plate Mrs. Dalloway, Gorenje designed by Nika Zupanc 

• Opening of the largest hazardous waste treatment plant in Slovenia 

2009 

• HOME APPLIANCES @ IFA 2009 FAIR, BERLIN: Gorenje designed by Karim Rashid; Gorenje Retro 

Collection; Gorenje Simplicity 

59


OWNERSHIP STRUCTURE – 31 DECEMBER 2009 

Ten major shareholders 

No. of 

shares 

% 

Employees 

and former 

employees 

6.00% 

Private 

Individuals 

20.82% 

Treasury 

Stock 

0.86% Pension Fund 

25.98% 

Financial 

Investors 

46.34% 

• Award for best IR team 2009 in Slovenia 

• IR Awards 2005, 2006, 2007, 2008 - Best IR by a 

Slovenian company 

• Portal Award 2005, 2006 - The best investor 

relations stock company in Slovenia 

KAPITALSKA DRUŽBA, D.D. 3,534,615 25.1933% 

HOME PRODUCTS EUROPE B.V. 1,070,000 7.6265% 

INGOR, d.o.o., & co. k.d. 794,473 5.6627% 

KD GALILEO 564,984 4.0270% 

RAIFFEISEN ZENTRALBANK AG 467,571 3.3327% 

PROBANKA d.d. 412,276 2.9385% 

EECF AG 411,727 2.9346% 

KD ID, delniška ID, d.d. 333,957 2.3803% 

TRIGLAV VZAJEMNI SKLADI 322,090 2.2957% 

KD RASTKO 232,593 1.6578% 

TEN MAJOR SHAREHOLDERS: 8,144,286 58.0491% 

OTHER SHAREHOLDERS: 5,885,714 41.9509% 

TOTAL: 14,030,000 100 

• TREASURY STOCK AT 31 DECEMBER 2009: 121,311 

60


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 forward-looking 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. 

61

presentation of the gorenje group

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