Post on 28-Sep-2020
GorenjeGroupING Industrials Conference
Warsaw, 23rd of June 2015
OWN
PRODUCTION
Slovenia
Serbia
Czech Republic
CONSOLIDATED
REVENUE
EUR 1.25 bn
NUMBER OF
EMPLOYEES
10,468
EXPORT
95%
of sales
GLOBAL
PRESENCE
90 Countries
Worldwide,
mostly in Europe (92%),
also in USA, Australia,
Near and Far East
CORE BUSINESS
Products and
services for home
(MDA, SDA, HVAC,
kitchen furniture)
One of Leading European
Manufacturers of Products for Home
2
Gorenje
Group
Ownership Structure
More than 50% of foreign shareholders
3
KAD
16.37%
IFC
11.80%
Panasonic
9.50%
KDPW
Fiduciary
account
8.05%
Other
financial
investors
37.52%
Natural
persons
12.98%
Employees3.28%
Treasury
Shares
0.50%
Brands
4
GLOBAL BRANDS LOCAL BRANDS
(Benelux)PREMIUM
MID
BUDGET
(Benelux)
(Nordic) (Benelux)
(E Europe) (SE Europe)
Global brand
(mid and high-mid price segment, design
lines) MDA and SDA brand
70 % of MDA revenue
Majority of revenue: Germany, Russia, SEE, Scandinavia
Global premium brand
Sales: EUR 100 m
Main markets: USA, Australia, Scandinavia,
Russia, Asia (selected markets)
Short-term: extend product portfolio and
strengthen position on key markets
Mid-term: expand to new markets
Production Facilities in 3 countries
7
SloveniaVelenje
Czech Republic Mariánské údolí
Serbia Valjevo, Stara Pazova, Zaječar
• Lowest labour costs
• Favourable customs conditions
to Russia
13%
35%
52%
Most Important Markets:
Germany, Russia and the Netherlands
8
RUSSIA GERMANYTHE NETHERLANDS
SERBIASLOVENIACZECH REPUBLICCROATIADENMARK
AUSTRALIJAUSA
UKRAINE
BIH
AUSTRIA
POLAND
BELGIUM
HUNGARY
FINLAND
NORWAY
RUMANIA
SLOVAKIA
SWEDEN
BULGARIA
GREAT BRITAIN
FRANCE
MONTENEGRO
Strategic Alliance with Panasonic
9
R&D – joint development projects(new washing machines)
•
Production
Increased production capacity utilization
Exchange of manufcaturing know-how
•
Sales
Possibility of joint sales-distribution channels
CAPITAL ALLIANCE
LONG-TERM STRATEGIC ALLIANCE
BUSINESS ALLIANCE
Panasonic - a minority shareholder in Gorenje
•
Standstill agreement - Panasonic not to
increase its stake in share capital
above 13% till 2018
Better absorption of fixed costs
•
Improved capital structure
•
Accelerated investment and R&D activities
•
Better access to new financial sources
•
Additional annual revenues of up to EUR 80 m by 2018
•
Gradual improvement of EBITDA of up to EUR 20 m on a yearly basis by 2018
GORENJE BENEFITS FROM THE STRATEGIC ALLIANCE
GRADUALLY
IMPROVE
EBIT
MARGIN
Strategic Goals 2014 - 2018
10
NET DEBT/
EBITDA
not more than 3.0
from 2015 onwards
To be the
WORLD’S
LEADING
design-driven
innovator and
manufacturer of
home
appliancesFOCUS
ON CORE
ACTIVITY
– Segment Home –
revenues more than
90%of all Group
revenue by
2018
INCREASE
THE SHARE
OF PREMIUM
BRANDS
SALES
to more
than 25%
GRADUAL
DIVESTMENT
of Portfolio
Companies
INCREASE
SALES
OUTSIDE
EUROPE
to close to
EUR 180 m
2014 was the year of
11
1. unstable business environment• Ukrainian and Russian crisis
• exchange rates volatility
• unstable environment in Asia
2. improved profitability• revenue growth
• positive effects of manufacturing restructuring in 2012-2013
• better management of raw and processed material costs
3. greater financial strength• better working capital management
• lower net debt
• improved maturity profile
4. strategic partnership with Panasonic
5. development of new markets and business cooperation• cooperation with the company SubZero in the US
• development of the Asko brand
• development of innovative appliances for own brands
• faster growth in overseas markets
2014: Core Financial Indicators
12
EURm Q4 2013 Q4 2014 Index 2013 2014 Index
Revenue 343.4 336.4 98.0 1,240.5 1,245.6 100.4
EBITDA 22.8 21.7 94.8 78.2 86.5 110.6
EBITDA margin (%) 6.6% 6.4% / 6.3% 6.9% /
EBIT 12.7 10.8 85.6 36.3 43.5 119.8
EBIT margin (%) 3.7% 3.2% / 2.9% 3.5% /
Profit or loss before tax -11.8 -2.8 24.0 -18.6 4.9 /
Profit or loss without discontinued operation -5.1 -2.8 54.6 -14.4 2.2 /
Profit or loss of discontinued operation -1.7 0.0 / -10.6 -1.0 9.4
Profit or loss for the period -6.8 -2.8 40.7 -25.0 1.2 /
Q4 2014 2014
Group's revenue: EUR 336.4m (-2.0%)
Home revenue: EUR 289.1m (-0.4%);
organic growth +5.2%
EBITDA: EUR 21.7m (-5.2%);
EBITDA margin: 6.4% (-0.2 p.p.)
EBIT: EUR10.8m (-14.4%);
EBIT margin: 3.2% (-0.5 p.p.)
Profit for the period: EUR -2.8m; Q4
2013 loss: EUR -6.8m
Group's revenue: EUR 1,245.6m (+0.4%)
Home revenue: EUR 1,065.9m (+0.1%);
organic growth +3.8%
EBITDA: EUR 86.5m (+10.6%);
EBITDA margin: 6.9% (+0.6 p.p.)
EBIT: EUR 43.5m (+19.8%);
EBIT margin: 3.5% (+0.6 p.p.)
Profit for the period: EUR 1.2m (EUR
+26.2m); 2013 loss: EUR -25.0m
289.4 290.7 300.7 310.0 307.0 308.5 343.4 336.4
1,240.5 1,245.6
0
200
400
600
800
1000
1200
1400
Q1 2013 Q1 2014 Q2 2013 Q2 2014 Q3 2013 Q3 2014 Q4 2013 Q4 2014 2013 2014
EU
Rm
2014: Business Performance
Group
Revenue
13
+0.4%
+0.4% +3.1% +0.5% -2.0%
Sales growth: Germany, Austria, Slovakia, Hungary,
Slovenia, Bosnia and Herzegovina, Romania, Bulgaria,
Caucasus, Australia and North America
Drop in sales: Ukraine, Scandinavia, Greece, Belgium,
France, Kazakhstan
Growth in markets beyond Europe: +10.7%
Higher sales of premium appliances: +16.4%
Growth of SDA sales under own brands: +4.3%
2014: Effects of changes in foreign exchange rates
14
HOMEEURm
Currency impact on revenue
Actual revenue 2014
Actual revenue 2014 valued at exchange rate
2013
Actual revenue
2013
Actual growth
%
Organic Growth
%
West -1.0 449.6 450.5 459.9 -2.3% -2.0%
East -36.1 507.3 543.4 506.7 +0.1% +7.2%
Other -2.5 109.0 111.5 98.5 +10.7% +13.2%
TOTAL -39.6 1,065.9 1,105.4 1,065.1 +0.1% +3.8%
While calculating the impacts of foreign currency fluctuations on the sale's organic growth, we take into account
revenue generated in the local currency in the period 2014, which are evaluated with the achieved average
exchange rates in each currency in the period 2013. The calculated revenue in EUR is thereupon compared with
the actual generated revenue in EUR recorded in the observed period.
Negative effect especially from depreciation of Eastern European and non-
European currencies
Effect on organic revenue growth in key markets (excluding other categories –
adjustment of prices to the market, product structure etc.):
2014: Sales by geographical segments
15
EURmQ4
2013%
Q4 2014
%Change
(%)2013 % 2014 %
Change(%)
Western Europe 120.0 34.9 117.6 34.9 -2.0% 465.9 37.6 459.1 36.9 -1.5%
Eastern Europe 196.4 57.2 191.9 57.1 -2.3% 676.1 54.5 677.5 54.4 +0.2%
Eastern Europe
(w.o. Russia and
Ukraine
139.0 40.5 137.9 41.0 -0.8% 491.3 39.6 515.2 41.4 +4.9%
Other 27.0 7.9 26.9 8.0 -0.4% 98.5 7.9 109.0 8.7 +10.7%
Total Group 343.4 100 336.4 100 -2.0% 1,240.5 100 1,245.6 100 +0.4%
Western Europe 118.0 40.6 114.4 39.6 -3.1% 459.9 43.2 449.6 42.2 -2.3%
Eastern Europe 145.4 50.1 147.8 51.1 +1.7% 506.7 47.6 507.3 47.6 +0.1%
Eastern Europe
(w.o. Russia and
Ukraine
88.0 30.3 93.8 32.4 +6.6% 321.9 30.2 345.0 32.4 +7.2%
Other 26.9 9.3 26.9 9.3 -0.4% 98.5 9.2 109.0 10.2 +10.7%
Total Home 290.3 100 289.1 100 -0.4% 1,065.1 100 1,065.9 100 +0.1%
Q12013
Q12014
Q22013
Q22014
Q32013
Q32014
Q42013
Q42014
2013 2014
Home 239.8 242.4 262.7 263.1 272.3 271.3 290.3 289.1 1,065.1 1,065.9
Portfolio 49.6 48.3 38.0 46.9 34.7 37.2 53.1 47.3 175.4 179.7
0.0
200.0
400.0
600.0
800.0
1000.0
1200.0
1400.0
EU
Rm
2014: Revenue by business segment
16
%
-0.4%
-10.9%
%
+0.1%
+2.5%
15.4% 14.1% 14.1% 14.4%
84.6% 85.9% 85.9% 85.6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q4 2013 Q4 2014 2013 2014
Home
Portfolio
Higher sales:
medical equipment,
metallurgic products,
machine and tool
manufacturing and
Ecology.
Q12013
Q12014
Q22013
Q22014
Q32013
Q32014
Q42013
Q42014
2013 2014
Home 9,373 9,037 9,355 9,144 9,187 9,102 9,133 8,888 9,296 9,041
Portfolio 1,333 1,425 1,344 1,440 1,341 1,447 1,347 1,436 1,343 1,427
0
2,000
4,000
6,000
8,000
10,000
12,000
2014: Average number of employees
%
-2.7%
+6.6%
2014: 10,468 employees (-171) :
Asko Appliances AB Sweden (production relocation from Sweden to Slovenia) and
partly also Gorenje, d.d.;
The number grew at the facility in Valjevo, Serbia (as a result of higher volume of
production since the freestanding refrigerator production was relocated)
The sales network restructuring activities in reducing the number of employees in the
sales network (Turkey, France, Slovakia, Czech Republic, Scandinavia, USA).
Portfolio investments: The number increased as business activities of ecology and tool
manufacture were expanded to new markets (Serbia)
17
%
-2.7%
+6.3%
Total: 10,706 10,462 10,699 10,584 10,528 10,549 10,480 10,324 -1.5% 10,639 10,468 -1.6%
2014: EBIT / EUR 7.2m or +19.8%
EBIT
Margin
(%)
EBIT
(EURm)
Contribution margin at the level of
cost of goods and material
Cost of services
Employee benefits expense
Amortisation and depreciation
expense
Other operating expenses
Other operating income
36.3
-0.9
11.1
10.3
-1.1
0.8
-13.0
43.5
2013
2014
18
5.710.2 9.8 11.7
8.110.8 12.7 10.8
36.3
43.5
2.0%
3.5% 3.3%3.8%
2.6%
3.5% 3.7%3.2% 2.9%
3.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
0.05.0
10.015.020.025.030.035.040.045.050.0
Q12013
Q12014
Q22013
Q22014
Q32013
Q32014
Q42013
Q42014
2013 2014
EU
Rm
Costs of services: -5.1% (EUR -
11.1m) systematic
implementation and monitoring of
preventive and curative measures
to achieve cost-efficiency
Labour costs: -4.3% (EUR -
10.3m) successfully completed
production relocation in 2013 and
the sales network restructuring
process also in 2014
2014: EBITDA / EUR 8.3m or +10.6%
EBITDA
Margin
(%)
EBITDA
(EURm)
2014: Net Profit Performance
ROS
(%)
PAT
(EURm)
19
16.1 20.8 20.7 22.3 18.6 21.7 22.8 21.7
78.286.5
5.6%
7.2% 6.9% 7.2%
6.1%7.0% 6.6% 6.4% 6.3%
6.9%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
Q12013
Q12014
Q22013
Q22014
Q32013
Q32014
Q42013
Q42014
2013 2014
EU
Rm
-4.2
1.0
-3.6
2.1
-10.4
0.9
-6.8
-2.8
-25.0
1.2
-1.5%
0.3%
-1.2%
0.7%
-3.4%
0.3%
-2.0%
-0.8%
-2.0%
0.1%
-4.0%
-3.5%
-3.0%
-2.5%
-2.0%
-1.5%
-1.0%
-0.5%
0.0%
0.5%
1.0%
-30.0
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
Q12013
Q12014
Q22013
Q22014
Q32013
Q32014
Q42013
Q42014
2013 2014
EU
Rm
2014: Financial Performance / Indebtedness
Development of total and net financial liabilities over the period of 2011-2014 in EURm
and debt maturity profile
20
* Accounting aspect
484.1432.7
397.4367.6382.5 379.2 358.8 331.8
0
100
200
300
400
500
600
31.12.2011 31.12.2012 31.12.2013 31.12.2014
Total financial liabilities Net financial liabilities
62.5% 64.0%50.0%
73.5%
37.5% 36.0%50.0%
26.5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
31.12.2011 31.12.2012 31.12.2013 31.12.2014
LT financial liabilities ST financial liabilities
Gross debt: EUR 367.6m (EUR -29.8m) improved cash flows from operating
activities, lower volume of investments, and the lower level of working capital
Net financial debt: EUR 331.8m (EUR -27.1m)
Net financial debt / EBITDA: 3.8 (improvement by 0.8)
Cash flows from operating and investing activities: EUR +29.4m; EUR 26.6m in
Q4 2014
Successfully completed share capital increases (Sep. 2013-Aug. 2014): EUR
36.7m
The last phase of the capital increase in form of debt-to-equity conversion (in Q3
2014): EUR 10.0m (equals the amount allowed pursuant to the resolution adopted by
the AGM on 23 August 2013)
2014: New products & Development
New generation of high-end built-in
ovens (Gorenje, Asko)
Asko line of kitchen appliances
Asko washing machine (11-kg
capacity)
Gorenje laundry dryer, energy class
A+++
Free standing fridge freezers, width
600 mm and height 2000 mm
Extended line of Retro refrigerators
Updated oven Gorenje by Karim
Rashid
New collection of premium Atag
cooking appliances (Magna series)
New generation of refurbished range
of cookers 600 mm, and a new
range of induction and hi-light built-in
hobs
In accordance with the set strategic
goals we have increased investments in
R&D Home: 2.9% (+0.4 p.p.)
In 2015 we focus on
22
Sales• growth
• improved sales structure
Cost cutting• services
• labour
• material
Deleveraging• divestments
• improved working capital
management
R&D• new products development &
innovation
Processes• SCM
• Complexity
Projects• Lean, TQM, forecasting
Asko premium brand development
Strategic partnership with
Panasonic
Risk Management
Organizational structure and
corporate governance
Strategy 2020
Responsibility• towards all shareholders
• personal responsibility
• for the future of Gorenje Group
*
23
EUR million 2013 2014Plan
2015Change
Consolidated revenue 1,240.5 1,245.6 1,216.1 -2.4%
EBITDA 78.2 86.5 92.9 +7.4%
EBITDA Margin (%) 6.3% 6.9% 7.6% +0.7 p.p.
EBIT 36.3 43.5 43.1 -0.9%
EBIT Margin (%) 2.9% 3.5% 3.5% /
Profit before taxes -18.6 4.9 10.8 +120.4%
Results w/o discontinued operations -14.4 2.2 7.6 /
Results from discontinued operations -10.6 -1.0 -1.5 /
Profit for the period -25.0 1.2 6.1 /
ROS (%) -2.0% 0.1% 0.5% +0.4 p.p.
Net financial debt 358.8 331.8 321.2 -3.2%
Net financial debt / EBITDA 4.6 3.8 3.5 /
Plan 2015: Highlights
Revenue: -2.4% (lower especially due to uncertain
conditions in Russia where lower revenue is
expected after a decade of growth)
Intensified adjustment of the business model for
higher competitiveness (lower complexity, better
efficiency)
Improved efficiency and performance of support
processes
Further working capital optimization and net
deleveraging
Increasing our business volume with our strategic
partner Panasonic
24
Plan 2015: Highlights
25
New launches: • New generation of Gorenje cooking appliances
• New Asko dishwashers
• New line of Asko cooking appliances
• New line of Magna cooking appliances by Atag
• New Matrix cooking hobs by Atag
Development of new premium and innovative products to
support the growth of sales in upmarket segments
Challenging the best designer
in the world
New design line
in 2015
EBITDA
Margin
(%)
EBITDA
(EURm
78.2 86.5 92.9
6.3%6.9%
7.6%
00%
01%
02%
03%
04%
05%
06%
07%
08%
0
10
20
30
40
50
60
70
80
90
100
2013 2014 Plan 2015
*
Higher planned
contribution margin,
especially in the
Home segment
10.6%
EUR 8.3m
7.4%
EUR 6.4m
27
Plan 2015: Improved EBITDA Performance
28
Plan 2015: Goal - Deleveraging and maintaining
a stable debt maturity profile
Further net deleveraging (improved
working capital management,
divestment)
Improvement of net financial debt /
EBITDA indicator to 3.46
Maintaining a stable debt maturity
profile
ST fin liab
101.7 mio EUR
29.7%
LT fin liab241.2
mio EUR70.3%
2015 Plan
ST fin liab97.4
mio EUR26.5%
LT fin liab270.2
mio EUR73.5%
2014
ST fin liab
198.7 mio EUR
50.0%
LT fin liab
198.7mio EUR
50.0%
2013
Q1 2015 was the quarter of
29
1. further unstable business environment• political instability and the exceptionally deteriorating
macroeconomic situation in markets of Russia and Ukraine
• exchange rates volatility
• decline in revenue on markets of Russia and Ukraine and due to
adjusted sales price policy in individual markets of Western and
Eastern Europe for the purpose of price repositioning
• foreign currency fluctuations significantly affected sales (mostly in
the markets of Eastern Europe)
• strengthening of the USD against EUR (a negative impact on SDA
profitability and a negative impact on the input prices of material and raw
materials)
2. cost and process optimization• lower cost of services and partial employee benefits expense
• Projects related to the adjustments of business processes
Q1 2015 was the quarter of
30
3. higher but seasonally dependent indebtedness• working capital management (higher inventories of finished
products and merchandise due to the sudden recall of orders by
customers in Russia, Ukraine and the markets of Caucasus)
• planned growth of indebtedness
• improved maturity profile
4. development of strategic partnership with
Panasonic Corporation
5. development of new markets and business
partnerships• cooperation with the company SubZero in the US
• development of the Asko brand
• development of innovative appliances for own brands
Q1 2015: Core Financial Indicators
31
Group's revenue: EUR 266.4m (-8.4%)
Home revenue: EUR 222.5m (-8.2%); organic growth -5.3%
EBITDA: EUR 16.2m (-22%); EBITDA margin: 6.1% (-1.1 p.p.)
EBIT: EUR 4.9m (-51.9%); EBIT margin: 1.8% (-1.7 p.p.)
Loss for the period: EUR -2.1m
Negative cash flows from operating and investing activities: EUR 55.2m
(worsened by EUR 23.4m)
Increase of net debt by EUR 10.4m
Net financial debt / EBITDA: 4.9 (4.7)
EURm Q1 2014 Q1 2015 IndexPlan 2015
Plan track
Revenue 290.7 266.4 91.6 1,216.1 21.9
EBITDA 20.8 16.2 78.0 92.9 17.5
EBITDA margin (%) 7.2% 6.1% / 7.6% /
EBIT 10.2 4.9 48.1 43.1 11.4
EBIT margin (%) 3.5% 1.8% / 3.5% /
Profit or loss before tax 2.5 -0.3 / 10.8 /
Profit or loss without discontinued operation 1.4 -1.6 / 7.6 /
Profit or loss of discontinued operation -0.4 -0.5 105.6 -1.5 30.0
Profit or loss for the period 1.0 -2.1 / 6.1 /
ROS (%) 0.3% -0.8% / 0.5% /
Net financial debt 392.6 403.0 102.6 321.2 125.5
Net financial debt / EBITDA 4.7 4.9 / 3.5 /
290.7266.4
310.0 308.5336.4
0.0
100.0
200.0
300.0
400.0
Q1 2014 Q1 2015 Q2 2014 Q3 2014 Q4 2014
mio
EU
R
Q1 2015: Business Performance
Group
revenue
32
-8.4%
Sales growth: Czech Republic, Slovakia, Poland, Hungary, Slovenia, Bosnia
and Herzegovina, Bulgaria, Romania, Australia, and the Netherlands
Downward sales: Russia, Ukraine, Germany, Austria, Scandinavia, Greece,
France, Great Britain, North America
Decline in markets beyond Europe: -18.2%
Growth of innovative appliances in the sales structure to: 8.2% (+0.8 p.p.)
Same share of premium appliances in the sales structure to: 16.0%
Decline of SDA sales: -1.9%
Q1 2015: Effects of Foreign Exchange Rate Fluctuations
33
Homein EURm
Currency impact on revenue
Actual revenue Q1 2015
Actual revenue Q1 2015 valued at
exchange rate Q1 2014
Actual revenue Q1 2014
Actual growth
(%)
Organic Growth
(%)
West -0.3 108.1 108.4 114.4 -5.6% -5.3%
East -7.6 93.9 101.5 102.8 -8.7% -1.3%
Other 0.8 20.5 19.7 25.2 -18.4% -21.6%
TOTAL -7.1 222.5 229.6 242.4 -8.2% -5.3%
► Foreign currency fluctuations significantly affected sales mostly in the markets of
Eastern Europe.
► Without considering other categories (i.e. exchange rate hedging, adjusting prices to
markets, product structure, etc.), the impact of foreign currency fluctuations on the
Group's organic growth in revenue in key markets was as follows:
While calculating the impacts of foreign currency fluctuations on the sale's organic growth, we take into account revenue
generated in the local currency in Q1 2015, which are evaluated with the average exchange rates achieved in each
currency in Q1 2014. The calculated revenue in EUR is thereupon compared with the actual generated revenue in EUR
recorded in the observed period
Q1 2015: Sales by geographical segments
34
EURm Q1 2014 % Q1 2015 %Change
(%)
Western Europe 116.3 40.0 110.2 41.4 -5.2%
Eastern Europe 149.2 51.3 135.7 50.9 -9.1%
Other 25.2 8.7 20.5 7.7 -18.4%
Total Group 290.7 100.0 266.4 100.0 -8.4%
Western Europe 114.4 47.2 108.1 48.6 -5.6%
Eastern Europe 102.8 42.4 93.9 42.2 -8.7%
Other 25.2 10.4 20.5 9.2 -18.4%
Total Home 242.4 100.0 222.5 100.0 -8.2%
Geographical sales structure of the Business Segment Home shows that:
our sales in Western Europe decreased by 5.6%, whereby lower revenue was planned.
our sales in Eastern Europe generated 8.7% less revenue. The said decline is the result of lower sales in the markets of Russia and Ukraine. If the impact of exchange rate fluctuations is not taken into account, our organic decline in revenue in Eastern Europe amounts to 1.3%.
Key innovations:
a new generation of
built-in ovens under
the Gorenje
trademark that were
launched on most of
the markets,
the new Essential
washing machine,
preparation for
launching the new
Magna premium
collection of cooking
appliances.
Increased investments
in R&D, which account
for 3.0% in the Group’s
revenue structure (+0.6
p.p.).
35
Q1 2015: Development & New products
• According to the approved 2015 business plan, Gorenje Group investments for
the Q1 2015 were planned at EUR 19.5m; actual investments amounted to
EUR 9.350m, which is good EUR 2m less than in the equivalent period in 2014.
• Investment implementation was consistent with the agreement that the
CAPEX would be adjusted to actual sales.
36
Q1 2015: Investment-related activities
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015
Home 9.3 10.6 9.1 24.8 7.7
Portfolio 2.1 1.0 2.3 2.4 1.6
CAPEX margin, % 3.9% 3.7% 3.7% 8.1% 3.5%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
0.0
5.0
10.0
15.0
20.0
25.0
30.0
EU
Rm
Q1 2014 Q1 2015 Q2 2014 Q3 2014 Q4 2014
Home 9,037 8,830 9,144 9,102 8,888
Portfolio 1,425 1,423 1,440 1,447 1,436
0
2,000
4,000
6,000
8,000
10,000
12,000
Q1 2015: Average number of employees
Q1 2015: 10.253 employees (-209) :
The number of employees was partly adjusted to the lower sales
volume in production companies (in the parent company and in
Valjevo, Serbia) and also in individual companies within the Home
segment (Scandinavia, Russia, Croatia, and Ukraine).
Portfolio investments: The number of employees was kept on the same
level.37
%
-2.3%
0%
Total: 10,462 10,253 -2.0% 10,584 10,549 10,324
Q1 2015: Financial Performance / Indebtedness
Movement of total and net financial liabilities in Q1 for the period 2012-2015 * (EURm)
and maturity structure of financial liabilities
38
* Accounting aspect
467.3 473.2418.2 422.5425.5
451.9
392.6 403.0
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
500.0
31.3.2012 31.3.2013 31.3.2014 31.3.2015
Total financial liabilities Net financial liabilities
62.4% 57.2%46.4%
60.2%
37.6% 42.8%53.6%
39.8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
31.3.2012 31.3.2013 31.3.2014 31.3.2015
LT financial liabilities ST financial liabilities
Gross debt: EUR 422.5m (+EUR 4.3m) result complies with interim seasonal
dynamics as the Group generates most of negative cash flows from operating and
investing activities; result comprises also liabilities under the fair value of forward
contracts used for hedging against interest rate and currency fluctuations.
Net financial debt: EUR 403.0m (+EUR 10.3m)
Net financial debt / EBITDA: 4.9 (decline by 0.2)
Cash flows from operating and investing activities: -EUR 55.2m; -EUR 31.9m
in Q1 2014
Thank you
for your attention.
Mrs. Bojana Rojc
Head of IR
T +386 3 899 1345
M +386 51 351 706
E bojana.rojc@gorenje.com
Gorenje, d.d.
Partizanska cesta 12, SI-3320 Velenje, Slovenia
Slovenia
www.gorenjegoup.com
Mrs. Jožica Turk
Executive Director Risk Management & Assistant
to Board Member
T +386 3 899 2352
M +386 41 607 329
E jozica.turk@gorenje.com
Gorenje, d.d.
Partizanska cesta 12, SI-3320 Velenje, Slovenia
Slovenia
www.gorenjegroup.com
Gorenje Representatives
40
Forward-looking statements
This presentation includes forward-looking information and forecasts – i.e. statements regarding the future, rather
than the past, and statements regarding events within the framework and in relation to the currently effective
legislation on publicly traded companies and securities and pursuant to the Rules and Regulations of the Ljubljana
Stock Exchange. These statements can be identified by the words such as "expected", "anticipated", "forecast",
"intended", "planned or budgeted", "probable or likely", "strive/invest effort to", "estimated", "will", "projected", or
similar expressions. These statements include, among others, financial goals and targets of the parent company
Gorenje, d.d., and the Gorenje Group for the upcoming periods, planned or budgeted operations, and financial plans.
These statements are based on current expectations and forecasts and are subject to risk and uncertainty which may
affect the actual results which may in turn differ from the information stated herein for various reasons. Various
factors, many of which are beyond reasonable control by Gorenje, affect the operations, performance, business
strategy, and results of Gorenje. As a result of these factors, actual results, performance, or achievements of Gorenje
may differ materially from the expected results, performance, or achievements as stated in these forward-looking
statements. These factors include, without prejudice to any not mentioned herein, the following: Consumer demand
and market conditions in geographical segments or regions and in the industries in which Gorenje Group is
conducting its operating activities; effects of changes in exchange rates; competitive downward pressure on
downstream prices; major loss of business with a major account/customer; the possibility of overdue or late payment
on the part of the customers; decrease in prices as a result of persistently harsh market conditions, in an extent much
higher than currently expected by the Gorenje Management Board; success of development of new products and
implementation in the market; development of manufacturer's liability for the product; progress of attainment of
operative and strategic goals regarding efficiency; successful identification of opportunities for growth and mergers
and acquisitions, and integration of such opportunities into the existing operations; further volatility and aggravation of
circumstances in capital markets; progress in attainment of goals regarding structural reorganization and
reorganization in purchasing. If one or more risks or uncertainties are in fact materialized or if the said assumptions
are proven wrong, actual results may deviate materially from those stated as expected, hoped for, forecast, projected,
planned, probable, estimated, or anticipated in this announcement. Gorenje does not intend to assume and will not
allow for any liability to update or revise these forecasts in light of development differing from the expected events.
41