Post on 27-Feb-2020
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
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
38
Growth• improved sales structure
• overseas countries
• premium brands
Deleveraging• improved working capital management
R&D• new products development & innovation
Risk Management
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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.
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
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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