Reasons for the development of a new strategy

Since the end of 2008, the Gorenje Group has faced important external and internal changes that have had a strong impact on its operations. In 2009, the strategic plan for the period by the year 2013 was completed and confirmed, but only a year later the plan no longer complied with the changes that were brought by the financial and economic crisis. Therefore, we began preparing a new strategy in the second half of the year 2010. This strategy will enable Gorenje's business and post-crisis recovery, and promote the revitalisation of its operation.

Our primary reasons for redeveloping our strategy of operation were as follows:

• Changes in external development
  The circumstances of operation significantly changed from the time of preparation of the previous strategic plan (beginning of the year 2010) due to an unstable economic environment caused by the world financial and economic crisis.

• Changes in the Gorenje Group
  • In August 2010, the Gorenje Group took over the Asko Group, the Swedish producer of household appliances;
  • In 2011, intensive activities of disinvestment of unnecessary property and business activities were performed (the sale of the ownership share in the company Istrabenz Gorenje, disinvestment of real estate in Serbia and France).
• Adjustment for effective corporate governance

Medium-term adjustments for effective corporate governance ensure insight into the successful operation of the Gorenje Group .