Presentation of the Gorenje Groupstatic14.gorenje.com/files/default/corporate/investor... ·...

46
www.gorenjegroup.com Presentation of the Gorenje Group Investor Conference Zagreb, 24 May 2016

Transcript of Presentation of the Gorenje Groupstatic14.gorenje.com/files/default/corporate/investor... ·...

www.gorenjegroup.com

Presentation of the Gorenje Group

Investor Conference

Zagreb, 24 May 2016

www.gorenjegroup.com

OWN

PRODUCTION

Slovenia

Serbia

Czech RepublicCONSOLIDATED

REVENUE

EUR 1.225 billion

NUMBER OF

EMPLOYEES

10,617

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

EXPORT

95%

of sales

R&D COMPETENCE

CENTRES

Slovenia

Czech Republic

Sweden

Netherlands

www.gorenjegroup.com

1950

Founded in the

village Gorenje

More than 60 Years of Tradition

3

1960

Production in

Velenje begins

1961-1970

Production of

washing machines

and refrigerators

1964

Production in Velenje,

New plant for

cooking appliances

1971

First sales subsidiary

abroad (Munich)

1991

Slovenia becomes

independent, loss of

the former domestic

market

1958

Manufacturing

of stoves

1961

First export

(to Western

Germany)

1961-1970

Acquisitions of

companies bringing

synergies to the core

Business “Everything

for Home“

Setting-up own

distribution network

in Western Europe

1991-1996

Strong expansion

abroad

www.gorenjegroup.com

1998

Gorenje, d.d.,

becomes a

public company, listed

on the

Ljubljana Stock

Exchange

Fast Development in the Last Decade

4

2006

New refrigerator

& freezer plant

in Valjevo,

Serbia

2010

Acquisition of the

company ASKO,

Sweden

2013

Strategic

Alliance with

Panasonic

Listing on WSE

2005

Acquisition of

the Czech cooking

appliances

manufacturer Mora Moravia

2010

IFC, a member of

the World Bank,

enters the ownership

structure

(…)

2008

Acquisition of the

company ATAG,

the Netherlands

2014

Positive effects of

restructuring2012

Restructuring

of production

facilities and sales

organization begins,

disposal of furniture

manufacturing

business

2015

Strengthening Strategic

Alliance with

Panasonic

New Strategy 2020

www.gorenjegroup.com

Ownership Structure

More than 55% of foreign shareholders

5

KAD

16.37%

IFC

11.80%

Panasonic

10.74%

KDPW

Fiduciary

account

8.05%

Other

financial

investors

36.91%

Individuals

12.38%

Employees3.25%

Treasury

Shares

0.50%

www.gorenjegroup.com

Strategic Alliance with Panasonic

6

R&D – joint development projects: (new washing machines)

Production: Increased production capacity utilization;

Exchange of manufacturing know-how

Sales: Possibility of joint sales-distribution channels

Strategic cooperation expanded to new business

segments: (a) procurement of materials &

components, (b) manufacturing innovation, (c)

consumer (aftersales) services, (d) logistics, (e)

quality assurance, (f) distribution of major and small

domestic appliances on selected markets

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

www.gorenjegroup.com

CORE BUSINESS

Business Segments

7

Products andservices for

home

MDA

(major domestic appliances)

•SDA

(small domestic appliances)•

HVAC

(heating, ventilation, air conditioning)

investments

Ecology•

Tool making•

Engineering•

Hotel and catering•

Trade

86% 14%

PORTFOLIO

2015

www.gorenjegroup.com8

Cooperation with international

institutions, knowledge and

excellence centres.

R&D Competence Centres

Firm Foundations for

Future Development of

the Gorenje Group

Mariánské údolí

www.gorenjegroup.com

Production Facilities for MDA in 3

Countries

9

SloveniaVelenje

Czech Republic Mariánské údolí

Serbia Valjevo, Stara Pazova, Zaječar

www.gorenjegroup.com

Most Important Markets:

Germany, Russia and the Netherlands

10

GERMANYRUSSIA THE NETHERLANDS

SERBIASLOVENIACZECH REPUBLICCROATIADENMARK

AUSTRALIJAUSA

UKRAINE

BIH

AUSTRIA

POLAND

BELGIUM

HUNGARY

FINLAND

NORWAY

RUMANIA

SLOVAKIA

SWEDEN

BULGARIA

GREAT BRITAIN

FRANCE

MONTENEGRO

www.gorenjegroup.com11

Gorenje Group Macro-organization and

Locations

Thoughtfully constructed sales network,

which will be expanding outside Europe.

CURRENT MACRO ORGANIZATION (HOME)*

PARENT COMPANY Gorenje, d.d.

HOLDING COMPANIES 2

SALES BUSINESS UNITS 44 (incl.representative offices)

PRODUCTION COMPANIES 6

www.gorenjegroup.com12

Implementing a multi-brand strategy with attention on the upper-mid and premium

price segment.

Gorenje Group Brand Portfolio

www.gorenjegroup.com

The best designer

in the world

New design line

in 2015

www.gorenjegroup.com

2015the year of

14

1. unstable business environment• Ukrainian and Russian crisis

• exchange rates volatility

2. greater financial strength• better working capital management

• lower net debt

• improved maturity profile

3. enhancing the strategic partnership with Panasonic

4. development of new markets and business cooperation• development of the Asko brand

• development of innovative appliances

• growth in overseas markets

5. new strategic plan 2016-2020

www.gorenjegroup.comwww.gorenjegroup.com

• First year of the new 2016-2020 strategic period, consistently with the

key strategic goals.

• Further growth of sales revenue planned for:

• Gorenje Group (+4.0%)

• Home segment (+4.6%)

• Increase in Gorenje Group profitability

• EBITDA: + 11.6%

• EBIT: + 14.9%

• Net profit: EUR 7.6 million

• Improvement projects at all levels of operations.

• Further working capital optimization and positive cash flow.

• Focus on the core activity.

• Relative deleveraging (net financial debt to EBITDA ratio).

15

Business Plan 2016

www.gorenjegroup.comwww.gorenjegroup.com16

EUR million 2015**Budget*

2016

Index

B16/15

Consolidated revenue 1,154.8 1,201.0 104.0

EBITDA 76.0 84.9 111.6

EBITDA Margin (%) 6.6% 7.1% /

EBIT 32.8 37.6 114.9

EBIT Margin (%) 2.8% 3.1% /

Profit before taxes -4.7 11.2 /

Profit or loss for the period -8.6 7.6 /

ROS (%) -0.7% 0.6% /

Business Plan 2016 (*excluding the companies from the Ecology)

**For comparability between the years 2015 and 2016, the 2015 is provided

in comparable terms, excluding the companies from the Ecology segment,

which are in the process of divestment.

www.gorenjegroup.com

Q1 2016 Highlights

17

Solid performance from the last quarter of 2015 has continued in the

first quarter of 2016 as the Group generated profit.

Our sales revenue totalled at EUR 285.5m or 6.5% more than in Q1

2015 (core activity +8.4%).

Sales revenue amount and growth are consistent with the Gorenje

Group sales plans for Q1 2016.

Sales revenue from core activity Home: EUR 242.7m (up 8.4%

relative to equivalent period of 2015) and comparable to the planned

revenue dynamics (10.1% organic growth after adjusting for

currency translation differences).

EBITDA amounted to EUR 18.5m (17.1% more than last year).

EBITDA margin was at 6.5% (up 0.6 p.p. from last year's first

quarter)

EBIT amounted to EUR 6.8m (51.8% more than last year).

EBIT margin at 2.4% (0.7 p.p. more than in the comparable period of

2015).

www.gorenjegroup.com

Q1 2016 Highlights

18

2016 first quarter performance

fuelled by successful performance in

the Home segment, owing to:

high sales growth (+8.4%) for

both major (+6%) and small

(+18.1%) appliances.

favourable regional structure of

sales with growing sales in the

following markets:

outside Europe (+8.4%),

Benelux (+8.1%),

Eastern Europe (+4.7%).

favourable brand structure of

sales with growing sales of the

following brands:

Asko (+14.1%),

Atag, Pelgrim, and Etna

(+8.1%).

favourable product structure of

sales with growing sales in the

following segments:

premium appliances (11.6-

percent volume growth; 16.3%

share in total MDA sales by

volume – increase by 0.4

p.p.),

innovative appliances (26.5-

percent volume growth; 10.4%

share in total MDA sales by

volume – increase by 1.5

p.p.),

cooking appliances (9.6-

percent volume growth),

dishwashers (25.6-percent

volume growth).

www.gorenjegroup.com

Q1 2016 Highlights

19

2016 first quarter performance fuelled by successful

performance in activity Home, owing to:

solid management of costs of raw and processed materials,

logistics, warranties, and labour

Raw and processed material cost optimization in

activity Home,

Activity Home logistics costs optimization.

Labour cost management consistent with the goals for 2016.

Increased investment into marketing and development

Investment into development EUR 8.8m (3.1% of the Group

revenue; increase by 0.1 p.p. or EUR 0.9m relative to Q1

2015).

Investment into marketing EUR 6.2m (2.2% of the Group

revenue; increase by 0.5 p.p. or EUR 1.6m relative to Q1

2015).

www.gorenjegroup.com

Q1 2016 Highlights

20

We cut our interest expense by 9.6% (EUR 0.4m lower

than last year).

We reported a positive result of foreign exchange rate

differences of EUR 1.3m (EUR 0.8m better than last year).

Our first quarter bottom line is a profit of EUR 0.6m, which

is better than in Q1 2015 that was wrapped up with a loss of

EUR 2.1m (planned loss dynamics for Q1 2016, was EUR -

1.0m; the plan included the gains from the divestment of the 7

Ecology companies).

We cut our net financial debt by EUR 6.7m (relative to Q1

2015)

We improved our net financial debt to EBITDA ratio by 0.1

(relative to Q1 2015).

Q1 2016: Key financial indicators

21

• Sound business operations recorded in Q4 2015 continued also in Q1 2016.

• Volume and growth in revenue comply with the planned sales of the Group for Q1 2016.

• Group recorded in Q1 2016 profit of EUR 0.6m showing an improvement over the Q1

2015 balance, when we generated a loss of EUR 2.1m.

• We recorded a positive result of foreign exchange rate differences in the amount of

EUR 1.3m on the Group level in Q1 2016, which shows an improvement of EUR 0.8m if

compared to Q1 2015.

EURm Q1 2015 Q1 2016 Index Plan 2016* Plan track

Revenue 268.0 285.5 106.5 1.201.0 23.8

EBITDA 15.8 18.5 117.1 84.9 21.8

EBITDA Margin (%) 5.9% 6.5% / 7.1% /

EBIT 4.4 6.8 151.8 37.6 18.1

EBIT margin (%) 1.7% 2.4% / 3.1% /

Profit before taxes -0.8 1.6 / 11.2 14.3

Profit or loss for the period -2.1 0.6 / 7.6 7.9

ROS (%) -0.8% 0.2% / 0.6% /

* Business Plan 2016 is prepared without the companies of the Ecology segment, which are in the

process of disposal (Gorenje Surovina d.o.o., Maribor, Kemis-BH, d.o.o., BiH, Kemis Valjevo d.o.o.,

Serbia, Cleaning System S, d.o.o., Serbia, PUBLICUS, d.o.o., Ljubljana, EKOGOR, d.o.o., Jesenice).

The aforementioned companies recorded in Q1 2016 revenue at EUR 14.2m and an EBIT of EUR

0.8m. If the companies are excluded, the Group would generate 22.6% of the planned annual revenue

and 16% of the planned EBIT, which is in accordance with the projected trend for the first quarter.

Q1 2016: Key financial indicators

22

EURm Q1 2015 Q1 2016 IndexPlan

2016*Plan

track

Gross financial debt 422.5 418.2 99.0 333.4 125.4

Net financial debt / EBITDA 402.5 395.9 98.3 319.0 124.1

Net financial debt / EBITDA 4.9 4.8 / 3.8 /

Gross debt: EUR 418.2m (EUR -4,3m).

Net financial debt: EUR 395.9m (EUR -6.7m).

DELEVERAGING in Q1 2016 by EUR 6.7m

NET FINANCIAL DEBT / EBITDA 4.8

www.gorenjegroup.com

EURm Q1 2015 % Q1 2016 % Change(%)

Western Europe 111.8 41.7 119.0 41.7 + 6.5

Eastern Europe 135.7 50.6 143.3 50.2 + 5.6

Other 20.5 7.7 23.2 8.1 + 13.0

Total Group 268.0 100.0 285.5 100.0 + 6.5

Western Europe 109.6 48.9 115.5 47.6 + 5.4

Eastern Europe 93.9 41.9 104.1 42.9 + 10.8

Other 20.5 9.2 23.2 9.5 + 13.0

Total Home 224.0 100.0 242.8 100.0 + 8.4

Q1 2016: Markets of the Core activity Home

23

By increasing the sales outside Europe, we diminish the dependency on European

markets and improve our sales structure (increasing the share of premium appliances).

Higher sales in the premium segment are generated by means of sales under the Asko

premium brand products. In a sales structure Asko represents 10.1% (+0.5 p.p.).

As for sales of small household appliances, the sales recorded 18.1% growth revenue.

The sale within the Home's sales structure represents 3.2% (+0.3 p.p.). Growth was

recorded in Russia and Ukraine, as well as in Czech Rep., Slovakia, Poland, Hungary,

Slovenia, Croatia and Bosnia.

www.gorenjegroup.com

Q1 2016: Markets of the Core activity Home

24

Sales growth: Slovenia, Hungary, Slovakia,

Romania, Bulgaria, Montenegro, Macedonia,

Russia and Ukraine (more than 30%), Benelux

(mainly Netherlands), Germany and UK

(compared to Q4 2015), North America (OEM),

Caucasus, Asia, Brazil.

Increase of sales outside Europe.

Drop in sales: Scandinavia and France.

www.gorenjegroup.com25

Higher share of innovative appliance sales to:

10.4% (+1.5 p.p.)

Higher share of premium appliance sales to:

16.3% (+0.4 p.p.)

Innovative appliances

… are appliances within individual group of products with the so-called

»innovative functionalities« which are more energy efficient (efficient storage,

lower energy and water consumption).

Premium appliances

... are appliances of the brands Atag and Asko brands, appliances from the

Gorenje design lines (Gorenje Simplicity, Gorenje Ora Ito, Gorenje Pininfarina,

Gorenje Classico, Gorenje One, Gorenje Karim Rashid, Gorenje Color edition,

Gorenje +, Gorenje Retro, and Gorenje by Starck).

Q1 2016: Markets of the Core activity Home

www.gorenjegroup.com

Q1 2016: Operating Performance

GroupRevenue

26

EURmQ1 2015 Q1 2016 Index

Revenue 268.0 285.5 106.5

CM 118.2 120.0 101.6

CM ( %) 44.1% 42.0% /

EBIT 4.4 6.8 151.8

EBIT margin ( %) 1.7% 2.4% /

Profit or loss for the period -2.1 0.6 /

ROS (%) -0.8% 0.2% /

+6.5%

Improved contribution margin: improved sales volume, sales and

geographical structure

268.0 285.5 289.8317.4 349.8

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

Q1 2015 Q1 2016 Q2 2015 Q3 2015 Q4 2015

EU

Rm

www.gorenjegroup.com

Q1 2015 Q1 2016 Q2 2015 Q3 2015 Q4 2015

Home 224.0 242.8 248.8 283.3 299.9

Non-core activities 44.0 42.7 41.0 34.1 49.9

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

EU

Rm

Q1 2016: Revenue by activities

27

%

+8.4%

-2.7%

Organic

growth Home

+10.1%

Lower revenue from sales of :

• Ecology, lower prices of secondary

raw materials market (Gorenje

Surovina)

Higher sales revenues

• Coal,

• machine building and toolmaking

and

• Ceramics.

Q1 2015 Q1 2016

Home 83.6% 85.0%

Non-core activities 16.4% 15.0%

0%10%20%30%40%50%60%70%80%90%

100%

www.gorenjegroup.com

4.4 6.8 6.3 5.6 18.1

1.7%2.4% 2.2% 1.8%

5.2%

0.0%

2.0%

4.0%

6.0%

0.0

5.0

10.0

15.0

20.0

Q1 2015 Q1 2016 Q2 2015 Q3 2015 Q4 2015

EU

Rm

Q1 2016: EBIT

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

4.4

1.8

-0.5

-1.2

-0.3

-0.3

2.9

6.8

EBIT Q1 2015

EBIT Q1 2016

28

Contribution margin: EUR +1.8m Higher sales volume, favourable geographical sales

structure, favourable sales structure of brands and product

groups.

Cost of services: +1% (EUR -0.5m increased

investments in marketing by 36.3%; increased costs of

logistics by 5.2%; Quality-related costs in connection

with repairs in warranty periods have declined by EUR

0.5m or by 36.2% (improved quality of products).

Employee benefits expense: EUR -1.2m

planned promotions, wage adjustments, retirement

benefits.

Other operating income: EUR +2.9m

+51.8%

www.gorenjegroup.com

Total: 10,253 10,530 +2.7% 10,444 10,935 10,849

Q1 2015 Q1 2016 Q2 2015 Q3 2015 Q4 2015

Home 8,830 9,077 9,008 9,495 9,408

Non-core acitivities 1,423 1,453 1,436 1,440 1,441

0

2,000

4,000

6,000

8,000

10,000

12,000

Q1 2016: Average number of employees by activities

29

%

+2.8%

+2.1%

• Average number of employees in Q1 2016 by 277 higher than in Q1 2015.

• The average number of employees in Home manufacturing companies grew by 174

(due to higher production activities), whereby in Home trading companies the

number increased by 71 due to the changed business model in the retail studios in

Eastern Europe (employment of staff that was previously employed via employment

agencies). The number of employees in Non-core activities grew by 30 persons

(increased sales volume in the area of catering, machine and tool manufacture).

www.gorenjegroup.com

Q1 2016: EBITDA

EBITDA

Margin

(%)

EBITDA

(EURm)

30

+17.1%

15.8 18.5 17.9 17.1

29.3

5.9%6.5% 6.2%

5.4%

8.4%

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

35.0

Q1 2015 Q1 2016 Q2 2015 Q3 2015 Q4 2015

EU

Rm

www.gorenjegroup.com

Q1 2016: Net Result Performance

ROS

(%)

PAT

(EURm)

31

Negative result from financing activities: EUR 5.1m (remained on the previous year’s

level). The negative result was primarily impacted by interest expenses that in Q1 2016

amounted to EUR 3.8m and show a decline by 9.6% in comparison to Q1 2015. A positive

result of foreign exchange rate differences on the Group level were recorded at EUR 1.3m

in Q1 2016, showing an improvement of EUR 0.8m over the Q1 2015 balance.

Income tax expense: EUR 1.1m, lower by EUR 0.3m in comparison to Q1 2015, includes

current and deferred income tax.

-2.1

0.6

-4.8

-2.5

1.4

-6.0

-5.0

-4.0

-3.0

-2.0

-1.0

0.0

1.0

2.0

Q1 2015 Q1 2016 Q2 2015 Q3 2015 Q4 2015

EU

Rm

-0.8%

0.2%

-1.7%

-0.8%

0.4%

-2.0%

-1.5%

-1.0%

-0.5%

0.0%

0.5%

1.0%

Q1 2015 Q1 2016 Q2 2015 Q3 2015 Q4 2015

www.gorenjegroup.com

-55.0

-11.4

1.2

64.7

-0.5

-66.6

Q1 2015 Q2 2015 Q3 2015 Q4 2015 2015 Q1 2016EU

Rm

467.3 473.4

418.2 422.5 418.2425.5452.1

392.4 402.5 395.9

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 31.3.2016

Total financial liabilities Net financial lisbilities

62.4% 57.1%46.4%

60.2% 62.8%

37.6% 42.9%53.6%

39.8% 37.2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

31.3.2012 31.3.2013 31.3.2014 31.3.2015 31.3.2016

Current financial liabilities

Non-current financial liabilities

Q1 2016: Financial performance

Cash flows from operating and investing activities

Movement of total and net financial liabilities in Q1 for the period 2012-2016 (EURm) and the

maturity structure of financial liabilities

32

4.3 EURm

6.7 EURm

• Very strong positive cash flow

from Q4 2015,

• Very low level of net working

capital recorded as at 31

December 2015.

• These dynamics are typical, as

the Group generates most of its

negative cash flows from

operating and investing activities

in H1 of the year.

www.gorenjegroup.com

Total 9.3 20.8 15.2 30.2 75.5 11.7

33

Q1 2016: Investment activities

Q1 2015 Q2 2015 Q3 2015 Q4 2015 2015 Q1 2016

Home 7.7 18.5 13.3 27.7 67.2 10.2

Non-core activities 1.6 2.3 1.9 2.5 8.3 1.5

CAPEX margin, % 3.5% 7.2% 4.8% 8.6% 6.2% 4.1%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

mio

EU

R

33

Pursuant to the Group's strategic goal, we have increased investments in product development to 3.1% in the Group’s revenue structure (0.1 p.p. more than in Q1 2015).

Key innovations that were launched in Q1 2016:

the upgraded built-in undercounterrefrigerators (600 mm),

the 10 kg washing machine for the strategic partner Panasonic,

Asko Craft premium built-in ovens programme,

the new programme of mid-price range dishwashers, whose production is planned to start in Q2 2016.

34

Q1 2016: Development and new Products

www.gorenjegroup.com

309.1 307.0

244.8227.4

142.3

211.8

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

31.3.2012 31.3.2013 31.3.2014 31.3.2015 31.12.2015 31.3.2016

Q1 2016: Working Capital

35

Movement of net working capital in the 2012-2015 period (EURm)

EURm 31 Mar 2012 31 Mar 2013 31 Mar 2014 31 Mar 2015 31 Dec 2015 31 Mar 2016

+ Inventories 246.2 265.3 238.0 238.1 225.9 238.1

+ Trade receivables 259.3 241.9 214.3 193.4 161.0 177.6

+ Other current assets 45.6 67.2 47.7 52.0 52.2 49.0

- Trade payables -153.9 -178.9 -168.3 -171.1 -221.0 -169.1

- Other current liabilities -88.1 -88.5 -86.9 -85.0 -75.8 -83.8

= Net working capital 309.1 307.0 244.8 227.4 142.3 211.8

Investments in net working capital

Net working capital = inventories + trade receivables +other current assets –

trade payables – other current liabilities

www.gorenjegroup.com

Q1 2016: Balance Sheet

36

EURm31 Mar

2015

31 Mar

2016EURm

31 Mar

2015

31 Mar

2016

Net non-current

assets510.6 533.0 Equity 365.4 366.9

Inventories 238.1 238.1Non-current financial

liabilities 254.3 262.8

Trade receivables 193.4 177.6 Current financial liabilities 168.2 155.4

Trade payables -171.1 -169.1Cash and cash

equivalents-20.0 -22.3

Other current assets /

liabilities-33.0 -34.9 Net debt capital 372.6 377.9

Net working capital 227.4 211.8 Financial investments -29.9 -17.9

NET ASSETS 738.0 744.8NET INVESTED

CAPITAL738.0 744.8

• Further decrease of net working capital :

• Trade receivables: declined by EUR 15.8m; The average turnover of receivables was 53

days (-10 days).

• Inventories: remained on the same level; Inventory turnover amounted to 73 days (-4 days).

• Trade payables: reduced by EUR 2.0m; Turnover of liabilities was 79 days (+4 days).

• Further deleveraging

Key managerial actions

37

Focus 2016:Sales• Growth (Asko, outside Europe, Atag,

Eastern Europe)

• Improved sales structure (innovative /

premium appliances)

Cost reduction• Material

• services (logistics etc.)

• labour costs (productivity)

Reducing the debt• divestment

• working capital management

R&D• new product development and

innovation

Processes• Supply Chain Management

• Complexity

Projects• Lean organisation, TQM, forecasting

Development of the premium

brand Asko

Strategic partnership with the

company Panasonic

Risk management

Organizational structure and

corporate governance

Strategy 2020

www.gorenjegroup.com

2016-2020we focus on

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Growth• improved sales structure

• overseas countries

• premium brands

Deleveraging• improved working capital management

R&D• new products development & innovation

Risk Management

www.gorenjegroup.com

• Profitable growth

• Global presence

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Two Key Strategic Directions

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Business Model and the Importance of Corporate

Culture

We are responsible to the people,

customers, partners, employees,

shareholders, society and the

environment. We respect the

commitment to efficiency and goal

orientation.

We operate in a spirit of continuous

improvement. Therefore, we support

innovation, bringing up new ideas in

all fields, open-mindedness and

encourage entrepreneurial thinking.

We remain loyal to the key goal of our

corporation: creation of value for the

shareholders, employees, business

partners, and the environment.

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Strategic Pillars 2020

< 2.5

www.gorenjegroup.com

Global premium brand

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

www.gorenjegroup.com

Inspired by

Scandinavia

From a wet premium specialist to

a premium specialist offering the

whole MDA range

Built like professional

Scandinavian design

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Asko appliances represent 10% in our revenues in 2015, in 2020 will represent 14.2% in

value due to extension of product portfolio and expansion on new markets and strengthening

the position on the existing markets.

Share Structure of Sales by Brands in

Value – 2015 & 2020

Doubled sales in

innovative and

premium segment

which will amount

to 30% of total

sales in 2020

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Vision, Mission, Corporate Values

www.gorenjegroup.com

Thank you

for your attention.

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