2.8 MEUR - Gorenje - Gorenje Group

Movements in Share Prices
62.9 %
Table 4: Trading data on Gorenje shares
decrease in Gorenje share value
in 2011. In our survey investors
named low liquidity of Slovenian
capital market as the main reason.
The Management Board of the company Gorenje, d.d.
Trading on the Ljubljana Stock Exchange in 2011 was
again marked by falling exchange rates and low share
liquidity. The Slovenian financial system and economy
are still trying to shake the effects of the financial and
economic crisis, which have significantly reduced the
demand for Slovenian shares among domestic and foreign
investors. As a result, the SBI TOP index dropped
a further 30.7 percent in 2011.
The value of Gorenje shares decreased 62.9 percent
in 2011. The main reason for this was, according
to investors participating in our survey, low
liquidity in the Slovenian capital market.
Over the past year, the value of Gorenje shares decreased
more than the central index, falling 62.9 percent at
a 6.2 percent lower trading volume. Competitors also
ANNUAL REPORT 2011
recorded falling share prices this past year, but their
decreases were not as pronounced. Since the beginning
of the economic crisis, investors have demonstrated
extreme caution towards all types of risks. Each time a
scenario for a way out of the European debt crisis appears
in the market, the shares of companies with slightly
higher financial leverage, such as Gorenje, experience
a particularly large drop in share prices. Even during
smaller pressures on sales, low liquidity in the domestic
market can cause negative shifts in share prices.
In a survey conducted among investors at the end
of November 2011, the majority of respondents (60
percent) expressed the view that Gorenje’s shares are
undervalued. The main reason for this is, according to investors,
the low liquidity of the Slovenian capital market.
2011 2010 2009 2008 2007 2006 2005 2004
Shares outstanding 15,906,876 15,906,876 14,030,000 14,030,000 14,030,000 12,200,000 12,200,000 12,200,000
Number of own shares 121,311 121,311 121,311 121,311 1,183,342 1,183,342 717,192 251,042
Number of shareholders 19,265 20,627 21,623 21,359 19,779 17,168 19,779 17,168
Annual turnover 13,972,282 14,974,483 13,732,616 15,899,680 152,035,954 63,995,302 50,622,953 26,675,752
Average market capitalisation 141,393,532 194,909,228 161,415,150 368,497,950 454,825,150 297,863,000 300,608,000 288,408,000
Value turnover (turnover / average market capitalisation) 0.10 0.08 0.09 0.04 0.33 0.21 0.17 0.09
Source: Data from Gorenje Group and Ljubljana Stock Exchange.
Note: All data are for the year-end, except the annual turnover and average market capitalisation, which are for the entire year.
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