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.

The 28th meeting of the Lider’s Club of Exporters took place at the AD Plastik factory at Jankomir, Zagreb. The members and guests of the club were welcomed by the Editor-in-Chief of the Lider Miodrag Šajatović, who emphasized that the members of this club are exporting HRK 15 billion a year.

The host of the meeting, Marinko Došen, President of the Management Board of AD Plastik, welcomed the guests and reminded that AD Plastik is a 100% exporter and places all of its production to foreign markets. Došen emphasized the excessive kuna exchange rate and the increase in operating costs, i.e. the increase in energy prices and labor costs as two key parameters that negatively affect the competitiveness of the company. “Every five years we lose almost one factory due to the strong kuna. If we take the 2014 kuna exchange rate as an indicator, we have lost almost HRK 87 million in revenue due to its strengthening over the last five years. Electricity costs rose 33 percent, which is a cost increase of HRK 8.4 million over the last three years. An increase in staff costs has burdened the business with HRK 78.5 million in the last five years. That is why it is necessary to consider compensatory measures for exporters exporting more than EUR 100 million or employing more than 500 employees,” pointed out Marinko Došen.

The main discussion of the members of the Club of Exporters was focused on the topic of energy sources prices as a significant factor in export competitiveness. The Minister of Environment and Energy Tomislav Ćorić participated as a special guest, who noted that Croatian exporters face a number of challenges in their operations. “Some of them, such as rising labor costs and electricity prices, cannot be significantly influenced by the Government of the Republic of Croatia. It is encouraging that we are currently in the process of implementing a new scheme for the payment of fees for renewable energy sources, which are aimed at relieving large consumers, that is, energy-intensive industries. Relief from the fees would range from 80, 60, or 40 percent,” said Minister Ćorić.

The Corporate governance quality conference was held at the Hotel Esplanade Zagreb, organized by the Croatian Financial Services Supervisory Agency and Jutarnji List. The Code of Corporate Governance of the issuers was formally signed, and it was jointly drafted by the Hanfa and the Zagreb Stock Exchange, with the support of the EBRD, with the aim of enhancing the culture of corporate governance. The Code of Corporate Governance sets the foundation for building sophisticated corporate relationships within companies by  defining detailed procedures for the work of the Management Board and Supervisory Board and establishing effective internal controls and accountability systems.

Participating in the main panel of the conference, Marinko Došen, President of the Management Board of AD Plastik Group, noted that efforts to improve the corporate governance culture have been put for many years. “Our industry is highly regulated. In our business, we are very connected with our partners, so they demand extremely high standards of corporate governance from us. There is no room for failure to meet the standards here as the market and customers constantly remind us of the importance of investing in a complete management culture. We couldn’t survive without it. Investor relations are very important to us because they give us support in our plans, while good relationships with our customers enable us to realize them,” said Marinko Došen, among other things. 

Apart from Marinko Došen, panel discussion was attended by Gian Piero Cigna, EBRD Chief Counsel of the Financial Law Unit, Ivana Gažić, President of the Management Board of the Zagreb Stock Exchange, dr. sc. Željko Lovrinčević, Scientific Advisor at the Institute of Economics in Zagreb and Petar Vlaić, President of the Management Board of the Erste mandatory and voluntary pension funds management company.

Zdravko Marić, Minister of Finance, dr. sc. Ante Žigman, President of the Management Council of Hanfa and Steven Maijoor, President of the European Securities and Markets Authority spoke at the conference.

The conference Education 4.0. – industry-tailored school was held in Zagreb, with the primary objective of encouraging a wider discussion on the gap between education programs in Croatia and the needs of the economy. The conference attracted the most famous local names from the industry, and AD Plastik was represented by Hrvoje Jurišić, Executive Director of Research and Development. As an industry representative, he spoke on this topic with Stjepan Sučić, Končar KET’s Development Director and Matija Gracin, Director of Components at Rimac Automobili company.

The conference was also supported by Steven Corbin, Sales, Strategy and Partner Development Director – 3DS Global Value Solutions, Matteo Cocca and Natacha Becard from Dassault Systemes educational part and prof. dr. sc. Daniel Rolph Schneider, Vice-Dean for Business and Organization at the Faculty of Mechanical Engineering and Naval Architecture.

Conference Education 4.0. – industry-tailored school is the start of a discussion to provide 3D design and simulation tools to technical schools and colleges, with the support of the Ministry of Science and Education, through available EU funds. The main goals of such gatherings are to connect the real sector and education, to provide a competent workforce and to develop the skills and knowledge needed in the modern industry.

The goal is to provide the necessary education and teaching content for teachers and professors through the CADCAM Education Center and Dassault Systemes Learning Services. Efforts are being made to motivate students and pupils to use the tools through existing DS student development projects, to encourage involvement of the real sector through sponsored assignments and projects, and to encourage students and pupils to acquire concrete and real knowledge and skills needed in the real sector.

AD Plastik Group has sealed new deals worth another EUR 40 million in the Russian market for the production of outer belts and static seals for various vehicle models of the Renault-Nissan-AvtoVAZ Alliance. 

In the last few months, new deals worth EUR 157.9 million were sealed in the Russian market, out of which EUR 147.4 million with the Renault-Nissan-AvtoVAZ Alliance for the new vehicle models Lada Granta, Renault Logan and Sandero. The start of serial production for these models is planned for the second and third quarter of 2021, with an estimated project duration of eight years.

New deals worth EUR 40 million have been sealed in cooperation with the world-renowned company Hutchinson Group, which generates a large part of its total revenue precisely from operations in the segment of development and produciton of seals. The Hutchinson Group will be responsible for the development and AD Plastik Group for the industrialization and serial production of the products on whose production deals were sealed. Static seals set for the new vehicle model Lada Granta and outer belts for Renault Logan and Sandero will be produced at the plant AD Plastik Togliatti.

The cooperation with the Hutchinson Group is significant for the AD Plastik Group as it will contribute to increasing the competitiveness and strengthening the extrusion technology in the Russian market. They are the world’s leading company in sealing systems, vibration control and fluid management technologies, from the automotive industry to aeronautics. They have over 44,000 employees in 25 countries and 27 technical centers coordinated with the Innovation Center in France. Their majority owner is French oil giant Total. 

A superior team of specialists from the Hutchinson Group with the expertise and years of experience in Research and Development, as well as years of experience and knowledge of manufacturing processes within the AD Plastik Group, create a business synergy that will surely result in successful and long-term cooperation.

The 22nd “Internal Audit and Control“ Conference was held in Primošten, organized by the Internal Auditors Section of the Croatian Association of Accountants and Financial Experts. The purpose of this event is to enable the acquisition of new knowledge and information on various and current issues related to internal audit, as well as to exchange experiences with colleagues from different organizations. International standards for the professional conduct of internal audit require that internal auditors receive continuing education and professional development.

As part of the Conference, two panels were organized in which the experts discussed the most important topics. The first panel covered the role of state bodies in strengthening supervisory mechanisms, with the participation of Boris Vujčić, Governor of the Croatian National Bank, Zdravko Zrinušić, State Secretary of the Ministry of Finance, Ante Žigman, President of the Governing Board of HANFA, and Verica Akrap, Assistant to the Chief State Auditor.

The second panel dealt with the experience of conducting internal audit, where Tatjana Sučić, Director of Internal Audit of Zagrebačka banka, Alma Delić, President of the Association of Internal Auditors of BiH, Berislav Horvat, Country Managing Partner Ernst&Young, Ivica Miličić, Head of the Professional Services of the Croatian Association of Accountants and Financial Experts; and Igor Kundid, Senior Internal Auditor of AD Plastik shared their experiences with other participants.