As part of the Zagreb Stock Exchange Awards, the Building Public Trust Award of the auditing company PricewaterhouseCoopers (PwC) was awarded for the first time this year, with the aim of recognizing and rewarding companies that stand out through clarity and transparency. Through the selection process, AD Plastik has been selected as the best according to the criteria of this well-known auditing company.

Thanking for the award, President of the Management Board of AD Plastik Marinko Došen said he was extremely pleased to receive the award that confirms that the efforts, work and improvements that were made have been recognized by the expert public.

„Over the last few years we have invested really great efforts and achieved remarkable progress in reporting and informing the investment public about the business of AD Plastik Group. Our primary objective is to provide transparent communication to shareholders and other stakeholders in order for them to be timely and accurately acquainted with key company activities and results arising from these activities. We want to ensure a transparent, stable and responsible business for all our shareholders. This award is a confirmation for us, but also an additional motive to continue to develop in that direction,” said Marinko Došen.

With the aim of strengthening the recognition of the capital market and its active participants among the financial and general public, the Zagreb Stock Exchange established the Zagreb Stock Exchange Awards in 2012, which are traditionally awarded each year in mid-December.

At the solemn session of the Economy Council of the Chamber of Economy of County Chamber of Split, in the presence of numerous businessmen, representatives of local and regional authorities, as well as economic and other institutions, AD Plastik was awarded a plaque Golden Marten in the category of large companies. Apart from AD Plastik, companies Tommy and Bobis also made to the final selection of this category. Thus, according to strictly prescribed criteria pursuant to which the Croatian Chamber of Economy assesses the success of the business, AD Plastik is the most successful large county company in 2017.

Thanking for the given acknowledgement, Marinko Došen, President of the Management Board, said that the growth of the company was achieved primarily thanks to its almost three thousand employees. “By doing business in the demanding world market and considering the industry we belong to, we are often asked whether we will change our company’s headquarters. Our answer is always the same – AD Plastik was founded in Solin and its headquarters will remain there,” said Marinko Došen.

The Golden Marten Award is the highest acknowledgment of the Croatian Chamber of Economy awarded to the best companies for the business success at the county level.

AD Plastik received the CSR Index award in the category of large companies which was presented jointly by the Croatian Chamber of Economy (CCE) and the Croatian Business Council for Sustainable Development (HR BCSD) for the successful implementation of corporate social responsibility. 

The award was taken over by the President of the Management Board Marinko Došen on behalf of the company, who on that occasion did not hide his great satisfaction with the fact that work and progress in the area of corporate  socially responsibility have been recognized by the expert public. „Corporate social responsibility is a part of our corporate culture and management, and the standards that we have set are at high levels. Responsible business is not just a question of choice, it is the obligation of a modern and successful business,“ Marinko Došen pointed out.

CSR Index is one of the most prestigious awards in Croatia in the domain of corporate social responsibility and it is awarded annually in the categories of small, medium, large and public companies. The awards were presented within the jubilee 10th Conference on Corporate Social Responsibility that was held in Zagreb. CSR Index is a methodology for evaluating the corporate social responsibility practices of Croatian companies, based on a ranking system that enables an objective assessment of socially responsible practices of the companies and comparison with the practices of other companies. 

„Companies that we reward through the CSR Index are the leaders of progress in the economy and society by giving their example and incorporating socially responsible practices into their business strategies. Our further common challenge at the national level is to harmonize policies, strategic and plan documents with the goals of sustainable development,“ pointed out Tomislav Radoš, vice president of the Croatian Chamber of Economy for Industry and Energetics, handing over the award.

AD Plastik Group continues its positive business trend, as confirmed by recently published interim report for the first nine months of 2018. The Group’s operating revenue amounted to HRK 939.39 million, representing an increase of 20.51 percent compared to the same period of the previous year. A clear vision and strategy of the company, focused on the needs of the market and customers, enable a continuous growth in its operating revenue.

Net profit for the first nine months amounted to HRK 60.09 million and compared to the same period of the last year it increased by 44.24 percent. Revenue growth, operational efficiency of production sites, and lower financing costs are the most responsible for the achievement of these results.

 „At the end of July we became 100% owner of one of the leading Hungarian companies for the production of plastic components Tisza Automotive, thus achieving the key goals of our growth strategy and medium-term development plan. Realization of new projects and deals sealed will ensure the continuation of revenue growth and good results in the medium term,“ said Marinko Došen.

In the reporting period, the EBITDA of the Group also increased by 9.75 percent and amounted to HRK 128.94 million. The net financial position is very stable, although it has been changed compared to the previous periods due to the acquisition performed. Since the beginning of the year, more than EUR 135 million of new deals for well-known customers has been sealed and this is the foundation for further successful operations.

 „We meet all market and customers requirements and that is the foundation of further business progress. Prerequisites for future growth and development have been successfully set and it is up to us to accept new challenges and continue in the direction we have determined,“ said President of the Management Board Marinko Došen.

The first national campaign “STOP Workplace injuries” was conducted from October 2016 to October 2018, organized by the Institute for Occupational Safety Improvement. As part of the European Week for Safety and Health at Work, at the conference “Occupational Safety – Yesterday, Today, Tomorrow” held in Zagreb, acknowledgments and plaques of the Institute for Occupational Safety Improvement were given to the companies and institutions for achieving remarkable results.

Recognitions and plaques were given to AD Plastik, Cemex, HEP, INA, Holcim Croatia, DS Smith Plastics Karlovac, ROCKWOOL Adriatic and URIHO institution. In the explanation for AD Plastik, it was emphasized that additional investment in safety and quality is confirmed by many certificates the company owns. It was emphasized that AD Plastik pays special attention to the identification of risky situations and to informing the workers about preventive activities, and a special commission for improving the safety and health of workers was established.

Action plan for measures and activities for improving Occupational Safety includes elaboration of activities related to regular, targeted and internal controls, training for safe work of all employees, better planning and activities of the Occupational Safety Committee, implementation of quality systems, purchasnig of working equipment and means of work and continuous cooperation of all key stakeholders. Within the company’s strategic goals, specific tasks and goals were determined that will further improve the area of occupational safety, with investment in new technology, equipment and working conditions in order to optimize costs, as well as to raise the level of workers’ safety.

Business acquisitions, mergers and sales across the world reached over USD 3.5 trillion in 2017, this is the information stated at the Conference M&A mergers and acquisitions as a function of growth and development. The conference was organized by the business weekly Lider and the leading Croatian M&A advisory firm Caper, a member of Oaklins.

„AD Plastik operates in nineteen countries around the world, focusing on the western part of Europe. Our most recent acquisition took place in Hungary where we bought a company that manufactures parts for Suzuki and Bentley, which are the customers we have not had in our portfolio so far. Automotive industry is like a family. It is difficult to enter, but you have to make a big mistake to go out,” said conference participant Hrvoje Jurišić, Executive Director for Research and Development of AD Plastik on that occasion.

The consultant company Caper, among other things, came to the conclusion that today every healthy company is a fair prey for takeover, and any bigger competitor or partner can turn over the night into a legitimate hunter. Capital is favorable, healthy private companies have been growing, and the business environment is still positive. These facts have been identified by research, and they were presented at the first Croatian conference devoted to mergers and acquisitions.

In addition to the usual drivers of M&A activities such as securing over-growth, acquiring new technologies, knowledge or markets, one of the most important drivers recently have been the changes caused by rapid technological innovations. They seriously hamper the business models of market leaders with traditional business models.

As part of the state and working visit, the Croatian – French Economic Forum was held in Paris. Apart from Prime Minister of the Republic of Croatia Andrej Plenković, the delegation consisted of Minister of Culture Nina Obuljen Koržinek and Minister of Tourism Gari Cappelli. Prime Minister Andrej Plenković stressed that Croatia has been implementing a series of reforms aimed at reducing macroeconomic instability, taxes and employers’ contributions.

„Croatia is a country desirable for investment. There are many interesting investment areas for French investors. There are great opportunities in tourism, automotive industry, traffic and energetics. The measures and reforms implemented by the Government provide a framework for stable growth and development, leading to a positive business and investment climate,” said Prime Minister of the Republic of Croatia on this occasion.

Croatian and French businessmen met on the second day of visit to Paris, and AD Plastik Group was among the economic representatives. Representatives of Đuro Đaković, Končar, Spin Valis, Podravka and Saint Jean Industries, as well as other Croatian companies which are interested in a major step forward in the French market, took part in the meeting with MEDEF, the largest employers’ association in France. MEDEF has more than 750,000 members, over 90 percent of which are small and medium-sized companies that cooperate with the world’s leading automotive companies.

„We have been cooperating with the French automotive industry for many years, and one of our biggest customers is Renault, a French car manufacturer, whose share in our revenue amounts to almost 60 percent. We manufacture components for French Peugeot vehicles and we have a long-standing cooperation with Faurecia, with which we have a joint-venture company in Romania. Reydel is also a French company with which we have been cooperating for a long time, and we have been developing cooperation with French partners Hutchinson and Segul. Our constant interest is the growth of sales and development competencies through long-term cooperation with automotive manufacturers, development centers and Tier1 partners,” said Marinko Došen, President of the Management Board of AD Plastik Group, among other things.

Croatian Exporters Association at its electoral assembly decided that the President of the Management Board of Končar-Elektroindustrija Darinko Bago will continue to lead the association. Professor at the Faculty of Economics at the University of Zagreb, Marijana Ivanov, replaced Josip Vugrinec, director of the company Ferokotao, as vice president of Croatian Exporters Association.

President of the Management Board of AD Plastik Group Marinko Došen and President of the Management Board of Primacošped are new vice-presidents of Croatian Exporters Association. These two replaced former vice-presidents Nada Šimić and Nadica Zver.

Ivo Usmiani, President of the Supervisory Board of Jadran galenski laboratorij, Tamara Perko, President of the Management Board of HBOR and Marin Pucar, President of the Management Board of Podravka were again elected vice-presidents of the Croatian Exporters Association. In addition to the Presidency members, sixteen members of the Management Committee were elected. The four-year term of office of the Croatian Exporters’ elected leaders begins on October 16, 2018.

The Croatian Exporters Association is a non-profit, non-partisan and non-governmental organization, which is independent in its work and can not be subordinated to any external authority. The task of the Association is, among other things, to encourage Croatian exports in all forms and in all markets, to promote the quality of Croatian exporters’ business, and to work on the legal and juridical framework to facilitate the export business.

Croatian and Slovenian institutional investors and representatives of the Romanian capital market gathered аt the one-day “Romania Day” conference in Zagreb organized by InterCapital. The conference was held with the aim of gathering, connecting and exchanging opinions of investors from Croatia and Slovenia with experts and participants of the Romanian capital market. The first part was devoted to the presentation of the investment climate and the capital market in Romania, while the second part was reserved for meetings with companies.

A panel discussion was held under the direction of Matko Maravić, President of the Management Board of Interkapital vrijednosni papiri and Ivana Gažić, President of the Management Board of Zagreb Stock Exchange, Adrian Tanase, President of the Management Board of Bucharest Stock Exchange, Marinko Došen, President of the Management Board of AD Plastik and Marius Dan, investor relations manager at Fondul Proprietate participated in discussion.

„We have JV company Euro APS in Romania and we have been doing business there for 16 years already. Although we are not listed on the Bucharest Stock Exchange, our experience in the Romanian market which has a developed automotive industry is very positive. Romanian economic policy as well as the interest of the world’s investment funds for Romanian companies contribute to a positive economic climate and, consequently, also to the trends of capital market trading,” said Marinko Došen.

He also added that the objective of the AD Plastik Group is to clearly and transparently present its business results, plans and business risks to investors and ensure dividend yield without compromising liquidity and financing for further growth and development of the company.

„First and foremost, we want to explain and clarify the specifics of the automotive industry to our existing and potential investors. Croatia has no car manufacturers, and therefore not many large suppliers. Our industry is really specific, starting from doing business practically without stock, to seldom seen partnerships between customers and suppliers. For the past few years we have invested a lot in building quality relations with investors and higher-quality corporate governance. And we plan to keep doing it,” said Marinko Došen, participating in the panel discussion.

Sales growth and good business results achieved by the Group in the first six months are the result of a business strategy focused strongly on customer needs and developing partnerships. Optimum capacity utilization, high operational efficiency, and quality cost management and financial expenditures management are the reason for further growth in net profit. Realized net profit in the first half of the year amounted to HRK 56.30 million, which is by 44.69 percent more than the net profit realized in the same period last year.

Operating revenue of the Group increased by 19.47 percent in the first six months compared with the same period in 2017 and amounted to HRK 634.73 million. Russian market recovery and new deals for Fiat, Volkswagen and Ford have influenced revenue growth and the share of these customers in Group revenue has become increasingly important.

 „In the second quarter of this year, we sealed new deals for the European and Russian markets with a total value of more than EUR 35 million and we have an additional reason for satisfaction. This year, our business will be primarily marked by the realization of new projects that will ensure continuation of realization of good results and further growth of revenue in the medium term. The Russian market has been recovering, and the car sales in the European market have been constantly growing, and this is best seen through increasing our customers’ orders and sealing new deals,“ pointed out President of the Management Board Marinko Došen.

In the reporting period, the EBITDA of the Group amounted to HRK 99.92 million, showing a growth of 17.05 percent compared to the same period of the previous year. This is another confirmation of high efficiency and good cost management. The AD Plastik Group’s financial position improvement trend has also continued in the observed period, which is confirmed by further decrease in net financial debt by HRK 60.72 million compared to the last day of 2017.

 „AD Plastik Group confirms its position in the market as a quality and reliable partner every day and this is a prerequisite for achieving our planned goals of further growth and development of the company. We have set good bases for a quality and stable long-term business, which is confirmed by achieved results,“ said Marinko Došen.