Thursday, 26th October 2017, Velenje, Slovenia
Notification about Request for Submission of Reports and Information
Gorenje received from the Securities Market Agency a Request for Submission of Reports and Information, based solely on the articles published in the Delo daily paper, regarding the discontinuation of business cooperation between the Gorenje Group and Panasonic. Misleading claims about the termination of cooperation between the two corporations were subsequently cited by other media outlets.
Gorenje will respond to the said request by the Securities Market Agency in compliance with the effective legislation and within the specified deadlines. We also requested from the Delo daily paper to correct the false allegations and to observe our right to reply to them, pursuant to the Media Act.
The fact that two commercial agreements on sale of products to Panasonic expired after the agreed contractual term does not mean that business cooperation has been discontinued, as falsely alleged several times by the media. Gorenje and Panasonic continue their business cooperation in development and production of certain products, and the two companies are discussing joint development of technologically advanced cooking appliances. Cooperation is based on the Strategic Cooperation Agreement that, in addition to the bases for commercial and development cooperation also regulates Panasonic's ownership of Gorenje stock.
According to our business plan, compiled in 2017, sale of products to Panasonic, based on the two commercial agreements, was budgeted to generate approximately 0.5 percent of Gorenje Group's total revenue. Between January and September of this year, the scope of these two agreements was fully executed and as a result, Gorenje will not sustain any loss of revenue in 2017 in this respect. Since Panasonic informed Gorenje in due time that they did not intend to extend the two agreements next year, revenue pertaining to these agreements will not be included in Gorenje Group's annual plan for 2018. Gorenje and Panasonic continuously adjusted their operations according to the trends in target markets; therefore, revenue budgeting was correct.
Gorenje Group does not report on events that are not of material significance for the Group (i.e. which represent less than 5 percent of annual revenue) thereby following the Instructions for Stock Market Issuers, published by Ljubljana Stock Exchange. If any of the partners terminated the Strategic Agreement on Business Cooperation, then Gorenje would act in the same way it did upon its signing, and such information would be immediately publicly disclosed.
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