Your needs. Our drive.
Your needs. Our drive.
The continuation of successful operations and the realization of the planned growth of revenue and profit of the AD Plastik Group have been confirmed by the just-announced interim unaudited results for 2019. Operating revenue amounted to HRK 1.5 billion, representing an increase of 17.1 percent compared to the same period last year.
Revenue at the parent company increased by 17.3 percent, amounting to HRK 1.1 billion. Start of serial production of new vehicle models and tool sales regarding these vehicles have greatly influenced profitability growth, thus EBITDA of the Group amounted to HRK 194.8 million, recording an increase of 20.4 percent, while in the parent company it increased by 49.2 percent and amounted to HRK 121.1 million. The Group’s profit increased by 10.4 percent, amounting to HRK 98.6 million, and in the parent company the profit is slightly higher than last year’s, amounting to HRK 89.7 million.
„Despite the challenges in the automotive market, our results confirm the correctness of our vision, strategy and business decisions we make. The growth trend of our Group is still above the market trends in which we operate, which also shows that we have chosen a good direction of business development. The past year was extremeley challenging for our production sites, especially in Croatia. We have successfully started serial production regarding several new and very significant projects, the most notable of which are Clio 5 and Ford Puma as well as redesigned Twingo and Smart. We have filled production capacities in Croatia and new deals worth EUR 157.9 million, sealed for the Russian market, will significantly fill the capacities of our Russian production sites. In addition to the new deals sealed for the Russian market, new deals worth EUR 57 million have been sealed in the European market,“ said Marinko Došen, President of the Management Board of AD Plastik Group.
Despite the significant investment cycle, the growth of operating business has improved net financial debt ratios relative to EBITDA, amounting to 2.26 at the Group level.
„We have made a safe step into another business year that brings new challenges and opportunities, and I believe also the successful results. Preparations of our production sites in Russia for acceptance of new projects as well as production stabilization at Croatian production sites lay ahead of us. We have set ambitious plans and the goals and their realization requires a high level of focus from us. The results we have been achieving are an additional motivation and incentive, but at the same time an obligation and responsibility to all our stakeholders to continue in the direction of further growth and development of the Group,“ said Marinko Došen.
The ADPL share price increased by 8.5 percent in the reporting period and as of December 31, 2019, its price amounted to HRK 191. According to the AD Plastik Group’s dividend policy and results achieved, a dividend amounting to HRK 12.5 per share was paid last year.
AD Plastik Group has sealed new deals worth EUR 31.8 million for the Russian and European market. Additional deals worth EUR 22.4 million have been sealed in the Russian market for the Renault-Nissan-AvtoVAZ Alliance and the cooperation with the PSA Group has been continued in the European market by sealing new deals with a total value of EUR 9.4 million.
AD Plastik Togliatti factory in Russia will be producing absorbers and exterior pillar trims for the new model Lada Granta as well as front bumper lower grills for the new vehicle models Renault Logan and Sandero. These are additional deals for new Alliance vehicle models for which most of the deals have been sealed during 2019. The start of serial production of the mentioned vehicles is planned for the second and third quarters of 2021, and the estimated duration of the projects is eight years. The value of the deals sealed for the vehicle Lada Granta amounts to EUR 15.2 million, and for the new Renault models – EUR 7.2 million.
The new deals sealed with the PSA Group confirm the very successful status of the AD Plastik Group in the supplier panel of this reputable automaker. The AD Plastik Group factory in Mladenovac has sealed the deal on production of glass run channels for Opel Astra, the best-selling Opel vehicle, with a total value of EUR 5.8 million. The start of serial production is planned for the fourth quarter of 2021 with an estimated project duration of eight years. The factory in Solin will be producing exterior components, namely the upper grills, which will be installed on Fiat Ducato and Opel Vivaro, vehicles from the FCA and PSA Group. AD Plastik Group will be producing components for these commercial vehicles models for the first time, with a value of the deal sealed amounting to of EUR 2.2 million. The start of serial production is also planned for the fourth quarter of 2021 with an estimated project duration of two years. Factory in Solin will also be producing air extractors for Peugeot 308 and Opel Astra vehicles, with a project value of EUR 1.4 million. Start of the serial production of this project is planned for the first quarter of 2021, with an expected duration of seven years.
At the ceremony of the Zagreb Stock Exchange Awards in Zagreb, AD Plastik was presented with the Share of the Year award chosen by the public.
On behalf of the company award was accepted by Finance Director Josip Divić who said on this occasion: “It is an extreme honor and pleasure to receive this award and I want to thank everyone who voted for us. First of all, I would like to emphasize that this is a recognition to all employees of AD Plastik Group. The results achieved are the consequence of a joint effort of all our employees. We are delighted by this award for a number of reasons, most notably because it comes from the general public, which recognized us among the fierce competition. We strive and work hard and this has been recognized in the market, and despite the record operating revenue we generated last year, we expect to exceed that result by the end of the year. For us, this was a very intense business year in which the serial production of large projects, the new Twingo and Smart, the Clio 5 and Ford Puma, began. Apart from that, since the beginning of the year, we have sealed new deals amounting to EUR 215 million that will enable us to continue our stable operations in the future. The award we have received is a confirmation of successful work, and I can only promise that it will not slow us down or make us lazy, in fact, it will only be an additional incentive for us to be even better.”
Award Committee of the Zagreb Stock Exchange decided on awards in a total of seven categories, considering objective, statistical criteria, but also the overall contribution to the education and development of the domestic capital market. The guests and the awardees were greeted by Ivana Gažić, President of the Management Board of the Zagreb Stock Exchange, who expressed her satisfaction that this awards ceremony has become a traditional event aimed at continuous identification and rewarding positive examples in our market. In the introductory part, the guests were addressed by Darko Horvat, Minister of Economy, Entrepreneurship and Crafts and Ante Žigman, President of the Governing Board of HANFA.
Despite numerous examples of women successfully managing even the largest companies in the world, especially in difficult economic times, their share in the total of senior and high-level management is rather modest. For this very reason, having organized the ninth Women in Business Conference and already the fifteenth selection of the most powerful women, Leader wanted to highlight successful experiences. This conference brings together business women, female owners, directors and managers of companies in Croatia, the region and beyond. This was precisely the desire of the organizers as well as to motivate women to take up new business ventures and to encourage the initiative to increase the representation of women in senior positions.
Two roundtables were also held as part of the conference, attended by women from different fields, in order to express their opinions on current topics of rights, positions, interests and requirements they face in business. The first round table entitled Extra Mile – Lifelong Learning was attended by Katija Klepo, Member of the Management Board of AD Plastik Group, who emphasized on this occasion:
“I am a member of the Management Board of AD Plastik Group, which is an automotive components supplier. The public perception is that it is mostly a men’s industry, but we employ almost equal number of men and women. We operate in five countries – except Croatia, we have factories in Russia, Hungary, Serbia and Romania and our trends are the same everywhere. The fact is that we live in very dynamic time and lifelong learning is a necessity, we must constantly keep improving our knowledge. In addition to business and private commitments, sometimes it’s not easy to fit it into a schedule, but it’s an investment in yourself and your future. Sometimes we have too little time for ourselves, but it is a matter of every woman’s choice so we accept the challenges and simply live them.” ne
CSR Index Awards were presented for the 12th time at the annual corporate social responsibility conference. The awards are given to companies for the best achievements in corporate social responsibility, and they are organized by the Croatian Business Council for Sustainable Development (HR BCSD) and the Croatian Chamber of Economy. Companies have been awarded in nine categories and more than one hundred have competed this year. AD Plastik won the award in the in the category of large companies again this year.
“We are proud that our continuous work and progress have been recognized by the professional public and I hereby thank for the award. First of all, I want to thank all of our employees who have most of the credit for the fact that social responsibility is part of our day-to-day business.” said Marinko Došen, president of the Management Board of AD Plastik Group, while receiving this significant recognition.
The central theme of this year’s conference was climate and climate change. Minister of Foreign and European Affairs Gordan Grlić Radman praised the efforts of HR BCSD and the CCE to contribute, through concrete activities, to achieving the sustainable development goals as effectively as possible under the 2030 Agenda.
Participating in the panel discussion, Marinko Došen emphasized the fact that the number of cars in the world has been constantly increasing and that despite new trends, the automotive industry is aware of its impact and is constantly taking various measures to reduce its negative impact on the environment. “This approach is imperative in the automotive industry. You really cannot be on the automotive supplier panel, whether you are a Tier 1 or Tier 2 supplier, unless you have a clear sustainability strategy and goals. We are also obliged to influence our suppliers, to choose them according to these principles and to exercise regular control,” Došen pointed out.
Došen emphasized that corporate social responsibility is an absolute choice of AD Plastik Group and a part of all business processes. “By researching and developing new materials, we reduce the weight of the components we produce and consequently the weight of the vehicle. We care about the emissions of gases generated in our production processes using state-of-the-art technologies according to the highest EU standards. We use recycled materials increasingly in the production itself. We have introduced a model of chemical leasing, taking care in this manner of the entire life cycle of a chemical or solvent. We dispose of the waste solvents from our painting production process to an authorized waste disposal company which regenerates the waste solvent and returns it back to the process for use. In cooperation with our customers, we have been working on reducing the amount of packaging waste, so the packaging of our products is mostly returnable,” Marinko Došen emphasized, and as an additional indicator of quality and social responsibility, he pointed out the various certificates that all production sites, where AD Plastik Group has its factories, obtain, starting with IATF 16949, to ISO 14001, ISO 45001, ISO 50001, ISO 27001.
The CSR Index enables companies to objectively manage, monitor, measure and interpret their own specific impacts. Using this tool, it is more visible for the companies what is being done well regarding their stakeholders and compared to other companies, and potential areas for improvement are indicated. In order to ensure their own sustainability and development, companies in all aspects of their business and in all relationships must show continuously good results.
Croatian Chamber of Economy organized the Day of Croatian Financial Institutions Conference – Impact of the introduction of the euro on economic developments. The organizers of the conference stressed that skepticism about the euro mainly comes from ignorance and that businessmen, and especially exporters, overwhelmingly support the introduction of the euro. It was reported that about two-thirds of Croatia’s trade in goods takes place in the euro area, which is where the vast majority of total foreign direct investments in Croatia comes from.
Prime Minister Andrej Plenković emphasized the numerous benefits of the introduction of the euro, from the permanent elimination of currency risk, through the reduction of borrowing costs to the strengthening of international trade. He announced that as early as next year we are entering the European Exchange Rate Mechanism II and that after two and a half to three years we should meet all the requirements for the introduction of the euro. This means that we would enter the Eurozone early in 2023 or 2024.
Marinko Došen, President of the Management Board of AD Plastik, participated in panel discussion as part of the conference, where discussion was held regarding the impact of the introduction of the euro on economic developments. “As president of the Management Board of a company that is a 100% exporter, it is clear that I am a big proponent of the introduction of the euro. The implemented exchange rate policy is not in us exporters’ favor and it is one of the biggest obstacles in increasing profitability. In these circumstances, it is very difficult to remain competitive in the demanding global market, especially in the industry in which we operate,” said Marinko Došen on this occasion.
On the premises of the CCE of the County Chamber of Split, a round table was held entitled “November 3 – the day from which women work for free until the end of the year – why?”. The theme of the roundtable was the difference in personal earnings between men and women, organized by the Croatian Chamber of Economy – County Chamber of Split and the KRUG Businesswomen Association. The event was aimed at pointing out that women continue to be paid less for the same work than their male colleagues, and that there is room for improvement on this issue, as well as a will to change and improve should be found throughout the entire society.
The round table was attended by Katija Klepo, a member of the Management Board of AD Plastik Group, who emphasized that in AD Plastik there is no difference between a man and a woman in terms of promotion, nor a difference in salaries for the same job. “Men and women in the AD Plastik Group have a very similar progression path, but certain positions carry increased responsibilities and challenges such as travel, additional engagement and the like. It is very important for women to harmonize their private and business life so sometimes they do not want to take over additional responsibility. As for other developed European countries, the main difference is that in these countries women have a greater choice than in Croatia. For example, they have the option of choosing part-time after returning from maternity leave and a significantly better options regarding childcare arrangements. It is encouraging that women in the business world today have a much better status than just ten years ago. Work should continue to be done in this direction. I am sure the differences that exist will diminish in the future and I believe they will also disappear over time,” said Katija Klepo.
From November 3 until the end of the year women across the European Union symbolically speaking work for free, comparing their earnings with those of their male colleagues at the same job. This day was called Equal Pay Day and it should serve as a reminder that women continue to be paid less for the same work than their male colleagues. The survey found that as many as 16.1 percent of women in the European Union have lower incomes than their male colleagues for the same job. The private sector in the EU is strongest in these differences, and the percentage varies across countries. In Romania, the difference is five percent, in rich and developed Germany as much as 21 percent, while in France it is 15 percent. Estonia has the biggest difference, as high as 25 percent, while in Croatia the difference is somewhere around the EU average.
AD Plastik Group has published Interim Report by Management for the first nine months of 2019, showing that operating revenue increased by 16.6 percent compared to the same period of the previous year and amounted to HRK 1,095.32 million.
„Business results for the first nine months show the positive trends of our business operations, despite the slightly less favorable market impacts. Since the beginning of the year we have been focused on the industrialization and realization of projects on which deals have been sealed. In addition to the start of serial production of the redesigned Twingo and the new Clio 5, which began in the second quarter, by the end of the year a serial production for the very demanding Ford project, with which we are collaborating for the first time on the painting program, as well as the redesigned Smart will have begun,“ said Marinko Došen, President of the Management Board of the AD Plastik Group.
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) amounted to HRK 133.54 million at the Group level, which represents an increase of 3.57 percent and EBITDA margin amounting to 12.19 percent was achieved. Revenue and EBITDA growth as well as more favorable net financial result have also contributed to a 6.28 percent increase in the Group’s net profit which amounted to HRK 63.86 million in the reporting period.„In the last few months, we have sealed significant development and production deals for components in Russia, which mainly relate to new models of the Renault-Nissan-AvtoVAZ Alliance, one of our key customers in that market. These deals will significantly utilize the capacities of our Russian factories, which will allow further growth and development of the Group in this market. In the automotive industry, we have the well-deserved position of a quality and reliable partner, and we have found our business niche in which we achieve results far above the industry average,“ said Marinko Došen.
For the tenth consecutive year, Poslovni dnevnik in cooperation with the Zagreb Stock Exchange has been awarding companies with the best investor relations. Companies from the CROBEX index and those listed on the Zagreb Stock Exchange’s Prime and Official Market enter the competition. The award winners are decided on the basis of statistical criteria relating to the issuer’s compliance with the Rules of the Stock Exchange and on the basis of a survey conducted among participants of the capital market.
This year, the awards were presented again in Rovinj as part of the eighth joint conference of the Zagreb Stock Exchange and the fund industry entiteled “Challenge of Change”. The award for the third ranking company went to AD Plastik, for the second ranking to Atlantic Group, and for the first ranking went to Valamar Riviera.
“The award is extremely important to us because it is about recognition by a professional financial public. Our business in the global marketplace requires the respect and continual improvement of high standards of corporate governance. The effort we put in is recognized, and it is our motive to be even better,” said Marinko Došen, President of the Management Board of AD Plastik, expressing gratitude to the organizers and participants of the conference.
The “Challenge of Change” conference represents the central gathering of the financial community from Croatia and the region, and this year about 40 speakers and about 450 participants from all branches of the financial industry attended the conference. The conference was inaugurated on behalf of the organizer by Ivana Gažić, President of the Management Board of the Zagreb Stock Exchange, and in the introductory part of the conference the participants were addressed by the Minister of Finance Zdravko Marić. This was followed by lectures by Ante Žigman, President of the Governing Board of the Croatian Financial Services Supervisory Agency, Governor Boris Vujčić, Uto Baader, founder of Baader Bank and former Estonian Prime Minister Taavi Roivas.
(photo: Manuel Paljuh)
As part of the 13th Conference of Croatian Security Managers held in Opatija, Croatia’s Big Security Awards 2019 were presented at the ceremony. AD Plastik won the award in the category Achievement and Development of Security in corporations, which was awarded for the successful integration of information and cyber security business processes. President of the Association of Croatian Security Managers Alen Ostojić presented the award to the President of the Management Board of AD Plastik, Marinko Došen.
“This award is extremely important to us. It confirms that our efforts and investments in raising corporate security level have been recognized by the professional public. AD Plastik operates in a very demanding global automotive market that has very high corporate and security standards. The results we achieve, as well as the awards we receive, give us the right to think that we are successful in this,” said Marinko Došen, thanking the expert jury and the organizers for recognizing the efforts and results of AD Plastik.
Croatia’s Big Security Award is awarded in 12 categories to individuals, companies, institutions and the local community for a significant contribution to achieving and developing the security of the Republic of Croatia.
The main theme of the Thirteenth Conference of Croatian Security Managers was “New Forms of Security in Focus,” and the President of the Management Board of AD Plastik also participated in the “Economy and Security” panel in the working part of the conference. Marinko Došen illustrated the importance of security with examples in the AD Plastik business. “There are two key reasons why we are constantly investing in systems. One of them is the field of manufacturing globality, because we export to 24 countries worldwide from our five factories in different countries. Another important reason for investing in corporate security is the fact that we have a special relationship with our customers with whom we are constantly connected with information systems. This requires every serious managament board to deal seriously with risk assessments. Following such evaluations, we bring in a whole set of procedures. We have formed a team within the company that is constantly dealing with such problems,” Došen said.
He emphasized that with the development of technologies, risks also develop, and added: “Fortunately, both resistance, that is solutions that cancel out the consequences of such risks, also develop. In order to survive in the industry, we must pay special attention to the risks and the strengthening of corporate security.”
The conference was opened with welcome speeches held by Alen Ostojić, President of the Association of Croatian Security Managers, Holger Haibach, the Head of the Office of the Konrad-Adenauer-Stiftung for Croatia and Slovenia and Damir Krstičević, Deputy Prime Minister and Defence Minister of the Republic of Croatia.