GORENJE, d.d., Velenje
Gorenje's Strategic Plan 2012-2015 and Business Plan 2012 published
Pursuant to relevant legislation, the company Gorenje, d.d., Velenje, Slovenia, hereby informs the shareholders and the public of the following:
Gorenje laid down a new strategic plan this year. After first confirming the plan in late August this year, the Supervisory Board was presented the final version at the session held yesterday, complete with amendments and additions pertaining to finance and organization. The plan includes a stronger focus on the core activity of products and services for the home which is planned to represent approximately 90 percent of total operations in 2015. Key performance goals include improved operating profitability in terms of EBIT margin for which a target of over 5 percent was set for the year 2015, and an increase in sales revenue to about EUR 1.5 billion by maintaining a compound annual growth rate of 3.8 percent. This would mean that the Group's growth would outpace the European market. In order to improve the robustness to the impacts of the financial crises, increase in free cash flow to at least EUR 40 million is planned by 2015, along with a decrease in overall debt.
The Supervisory Board confirmed at the session, held on December 19th, the business plan for the coming year. Gorenje Group will continue to face severe challenges next year as the harsh economic and financial conditions seen this year are expected to persist. The Group is planning revenue of nearly EUR 1.4 billion. In comparable terms (i.e. adjusting for the effects of Istrabenz Gorenje), revenue growth in 2012 will amount to 7.4 percent. Operating profit (EBIT) in the amount of EUR 50 million will exceed this year's estimate by good 31 percent and net profit is planned at EUR 13.4 million, which is 45.6 percent more than estimated for 2011. Key goals for the coming year include improving the operating profitability, increasing the free cash flow to EUR 28.6 million, and reducing overall debt.
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.gorenje.com, for at least 5 years from the date of this announcement.
The Management Board