GORENJE, d.d., Velenje
Resolutions passed at the 22nd Annual General Meeting of Gorenje, d.d.
Gorenje management board discharged from liability for 2014; shareholders to receive dividend
The Management Board of Gorenje, d.d., Partizanska 12, Velenje, Slovenia, pursuant to the provisions of the Companies Act (ZGD-1), the Market of Financial Instruments Act (ZTFI), the Ljubljana Stock Exchange Rules and the Corporate Governance Code for Joint Stock Companies, and in accordance with the provisions of the Code of Best Practice for WSE Listed Companies,
hereby announces the press release and the resolutions passed at the 22nd Annual General Meeting (AGM) of Gorenje, d.d., held on Friday, July 3rd 2015, starting at 11.00 AM, in the Grand Hall of Hotel Paka in Velenje, Rudarska ul. 1, Slovenia.
Velenje, Slovenia, July 3, 2015 – Today, the 22nd Gorenje, d.d., Shareholders Assembly took place with 50.09 percent of the voting-right-bearing capital represented. The shareholders granted discharge from liability to the Management Board and Supervisory Board and approved the Management Board proposal regarding allocation of distributable profit for 2014, amounting to EUR 4,219,490.55, according to which EUR 1,458,198.12 shall be used for dividend payment and EUR 2,761,292.43 shall remain unallocated. Thus, Gorenje shareholders will receive a gross dividend of EUR 0.06 per share this year.
In the presentation to the shareholders, President and CEO Franjo Bobinac addressed the 2014 results as well as current operations and performance. Gorenje sales declined in the early months of 2015, especially due to the conditions in Russia in Ukraine where the market plummeted by nearly 50 percent. Solid sales in Central and Eastern Europe, Australia, and Benelux, could not offset this loss of revenue.
Russia is gradually recovering and Gorenje believes that sales will improve in the second half of the year to catch up with the planned annual dynamics. Orders have been increasing for the third and fourth quarter, including those for Russia and Germany which are Gorenje's largest markets. This is also attributed to the launch of new cooking appliances and a designer line of kitchen appliances developed in cooperation with a globally renowned designer. The loss of revenue will be difficult to cover entirely. However, Gorenje will not lose any market shares; on the contrary, they will be increased in many markets.
Already in the second quarter, Gorenje adjusted its manufacturing output to actual dispatches, thereby reducing the level of inventory. In order to adjust the labour costs to the actual production volume in Slovenia, 136 workers have been temporarily furloughed. As the orders increased, the workers gradually returned to work; most of them came back as of July 1. Due to large volume of orders for the months ahead, Gorenje temporarily hired additional 171 workers.
With regard to attainment of goals for 2015, the biggest unknowns continue to include sales in Russia and Ukraine, and currency translation differences with their potential negative effect. Results will depend considerably on the rouble to euro exchange rate. Interim results for the first half will be announced after they are presented to and discussed by the Supervisory Board on August 21, 2015.
Disclaimer: The English text for all announcements is for information purposes only!
The information in this announcement will be available on the official web site of the company Gorenje, d.d., Velenje, Slovenia, www.gorenjegroup.com, for at least 5 years from the date of this announcement.
The Management Board