GORENJE, d.d., Velenje
Gorenje Group measures to alleviate the negative effects of exceptional aggravation of economic conditions in Russia
In accordance with the provisions of the Code of Best Practice for WSE Listed Companies, the Ljubljana Stock Exchange Rules, and the applicable legislation, the company Gorenje, d.d., hereby makes the following announcement:
Velenje, December 16, 2014 – Economic conditions in Russia, a key market for the Gorenje Group, have deteriorated dramatically in recent weeks. The Russian rouble has depreciated by 34% in the period from December 1 to 15, after having lost over 12% in November. Gorenje Group is looking to alleviate the negative effects of the exceptional aggravation of economic conditions in Russia by a number of measures.
Economic conditions in Russia have worsened in recent weeks, which has also been reflected in strong depreciation of the rouble. After depreciating by over 12% relative to the euro in November this year, the Russian currency lost a further 34% relative to the euro in the period from December 1 to 15. Cumulatively, the rouble depreciation from the beginning of the year to mid-December exceeds 80%. The depreciation of the Russian currency has a negative effect on the Gorenje Group's revenue from sales in Russia in euro terms, and the currency translation differences have a negative effect on the Group's bottom line.
Gorenje Group is carefully monitoring the development of all events affecting the value of the rouble, as it seeks to alleviate the negative effects of the harsh economic conditions in this market on the operations and performance with a variety of measures.
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The information of this announcement will be available on the official web site of the company Gorenje, d.d., Velenje, Slovenia, www.gorenjegroup.com, at least 5 years from the date of the announcement.
The Management Board