AD Plastik has been recognized as one of the most successful companies regarding corporate governance in Croatia and it has won a corporate governance excellence award. As part of the second business conference Corporate governance in Croatia, corporate governance excellence awards have been given for the first time to joint stock companies. The awards were given by a weekly magazine Lider and Governance Research and Development Centre and are based on an analysis of the results of all joint stock companies in the regular and official market of Zagreb Stock Exchange. Based on the submitted questionnaries and according to the SEECGAN methodology, assessment of corporate governance is defined.

The conference is dedicated to the important issues of corporate governance and its role in the business of trading companies and the main goal is to warn about the need and the possibilities of improving the system and practice of corporate governance in Croatia. President of the Managament Board of the AD Plastik Group Marinko Došen participated in the round table on the topic „First-rate corporate governance in Croatia – experiences of the best joint stock companies“.

„Corporate governance is extremely important for achieving top business results, as setting high standards of corporate governance and business transparency facilitates access to capital at lower costs. By means of responsible management and control over business and management functions, interests of the shareholders and all other stakeholders are protected, which represents a benefit of good corporate practice. Good corporate governance pratice is extremely important for us, especially if we take into consideration that we conduct business on several locations in several different countries. By conducting a business in accordance with the applicable regulations of the countries in which we operate, meeting the highest standards regarding organization of business and the application of modern business principles, applying and incorporating recognized international guidelines, the prerequisites for making legitimate, reponsible and optimal business decisions are fulfilled“, said Marinko Došen.

Apart from AD Plastik, Ericsson Nikola Tesla, Hrvatski telekom, Končar elektroindustrija, MIV – Metalska industrija Varaždin have also won the awards and excellence awards were also given to Podravska banka, PIK rijeka and Optima telekom. Award for the best practice of corporate governance in Croatia was given to the Atlantic Group.

Published report of the AD Plastik Group for the first half of 2016 indicates that net profit at the Group level has been steadily growing despite a slight decrease in revenue.

„Despite somewhat lower realization, our business results are in line with the plan and realized net profit has increased compared to the first half of last year and it amounted to HRK 28.1 million. Although the Group’s operating revenue has still been declining in the Russian market, good news for our business is strengthening of a currency and the recovery of the ruble as well as cessation of the drop in car sales in the Russian market. This will certainly have a positive impact on the business of our factories in Russia. In addition, the European Union market has been constantly growing, thus our customers have recorded a double-digit sales growth. This is also evident in our business results. In the first half of the year we realized operating revenue amounting to HRK 512.2 million which was by 2.42 percent less compared to the same period last year at the Group level, while in Croatia revenue grew by 1.75 percent,“ said Marinko Došen, President of the Management Board of AD Plastik.

EBITDA amounting to HRK 75 million was realized in the first half of the year at the Group level, representing a significant increment compared to the same period last year. Despite somewhat lower sales volume, EBITDA growth indicators in the amount of 20.39 percent indicated a constant improvement in cost efficiency and profit realized indicated a further increase in profitability. Further EBITDA growth, along with optimization of business efficiency and reduction in credit obligations are one of the key objectives of the company’s management for the rest of the year.

 „Renault has been increasing capacity utilization in the Revoz factory where they are planning to transfer production of their best-selling vehicle Renault Clio. As Renault is one of our biggest customers and we have successful long-term cooperation with their most efficient factory in Novo Mesto, we believe that the transfer of Clio production to Slovenia will have a positive impact on our business as well. We are currently competing for product complect for the new Clio, which would enable us to fully utilize capacities in our factories in Zagreb, but also possibly to expand. This project would provide us with growth already from the next year. Further revenue growth in the existing and new markets, stable financial operations and strengthening the company’s attractiveness in the investment and financial public are the key goals in the new mandate of the Management Board and I am convinced that we will achieve them successfully,“ said Marinko Došen.

Marinko Došen has been reappointed as the President of the Management Board at the AD Plastik Group’s Supervisory Board meeting. Along with him, the current members Katija Klepo and Mladen Peroš will remain in the Management Board for the next four years, while Sanja Biočić, the former Executive Director of Finance of the company has been appointed as the fourth member.

Marinko Došen became President of the Management Board of AD Plastik in February last year and before that he performed duty of general director of AD Plastik Togliatti in Russia. „This appointment is an honor, but also a confirmation that over the past 18 months we have been doing a good job. I am aware of the obligations and responsibilities that lie ahead of us, as well as of market circumstances. We have to continue in the direction we have started in order to achieve the desired growth and development and to compete successfully in the demanding market of the industry in which we conduct business. There is a lot of work and challenges ahead of us, but I am confident in the success of AD Plastik Group,“ said Marinko Došen.

Cooperation with Ford in Russia regarding production of interior components trims for the new EcoSport for the Russian market has been agreed recently. After India, China, Thailand and Brasil, since the end of 2014 Russia has been the fifth country in the world that produces EcoSport. This is also the first crossover SUV vehicle in the Russian market.

EcoSport for the Russian market has been adapted to winter conditions, models with front-wheel drive and four-wheel drive are available while 1.6 and 2.0. litres petrol engines are available. They have been produced in the Ford Sollers factory in Naberezhnye Chelny (Tatarstan).

The start of serial production of interior components trims is planned for June 2017 and expected annual revenue received from this project in a full year production amounts to EUR 1.5 million.

„Given the current decline in sales in the Russian market, most Tier 1 suppliers have surplus capacity, thus competition in winning new deals is extremely strong. This deal proves that AD Plastik from commercial and technical point of view can compete with the strongest competition in the industry. This nomination brings us back to the panel of strategic suppliers for Ford in Russia which is extremely important for us and opens up possibilities for us to compete for other vehicle models of this customer,“ said Sales Director for the Russian market Mislav Čelar.

New deals for the production of new Fiat 500 and 330 parts have been sealed and their serial production has been planned for the beginninng of 2017 in the factory FCA Kragujevac in Serbia. The above-mentioned car models will start to restyle soon and the expected annual revenue from this project in a full year production amounts to more than EUR 6 million.

Production of painted parts of instrument panel, bumper, air duct connector and shift lever cover for the vehicle 500 has been agreed. Painting and injection moulding of individual parts will be made in Zagreb Jankomir factory, blow moulded parts will be manufactured in Mladenovac, and part of injection moulded parts will be manufactured in Solin. Vehicles will be produced and assembled at Fiat plant in Kragujevac that is managed by the company Fiat Automobiles Serbia, which is part of the famous FCA Group with which AD Plastik plant in Mladenovac has been closely cooperating for several years. AD Plastik also cooperates with Fiat factories around the world where they sell their products from Solin and Mladenovac plants.

Although AD Plastik Group has been cooperating with the FCA Group for a long time, it is interesting to point out that this is the first deal regarding painting for this customer, which opens up new possibilities in that segment also for other models of their vehicles.

„This project enabled us to significantly expand cooperation with Fiat and by its realization Fiat should break into the second place regarding value in our customers portfolio. This deal opens up new possibilities for us which are result of long-term partnerships achieved with hard work. Number of our components in the vehicles being produced in Kragujevac has multiplied and now we are working with all Fiat plants,“ said Toni Štambuk, Sales Manager for the FCA Group.

More than two hundred participants from a hundred companies from the automotive industry sector participated in the third SEE Automotive conference that was held in New Sad this year for the first time. Eminent automotive equipment manufacturers and representatives of the largest companies from the automotive sector, such as BMW, Fiat, Volkswagen, Federal Mogul, Grammer, Bosch, Magna and others attended the conference. Enterpreneurs from Serbia, Hungary, Romania, Bulgaria, Croatia, Macedonia, Bosnia and Herzegovina, Slovakia, Greece and Turkey participated.

The conference was organized by the Automotive cluster of Serbia and Vojvodina Investment Promotion Fund with the aim of positioning the Southeast Europe region and connecting suppliers and car manufacturers that have been increasing in that market.

„On the one hand labor force price in our region is relatively acceptable and on the other hand we are close to the large European car manufacturers which have noticed the advantages of the countries from this region regarding experience and tradition in the automotive equipment and automotive parts manufacturing. Automotive equipment manufacturers in our region have come close to the high standards, thus renowned car manufacturers from Europe have been cooperating with the suppliers from Far East less and less. Europe wants to position itself not only as a leading car manufacturer, but also as leading automotive equipment manufacturer,“ said Toni Štambuk, Sales Manager for the FCA Group and EU market in AD Plastik.

Over the past 16 years the value of foreign investments in Serbia amounted to EUR 25 bilion, of which 10 percent of investments refered to the automotive industry. Most of these investments have been made due to the decision of large car manufacturers to transfer part of their business to this region.

Geographical location, qualified labor force, acceptable logistics costs, flexibility and motivation have been pointed out at the conference as advantages of this region, while a small amount of local companies and insufficient use of modern technologies have been highlighted as disadvantages.

Participants have talked about trends in the automotive industry, so manufacturers held speeches about innovativeness they require from their suppliers and cooperation that should be based on trust and partnership. One of the main goals of the European car manufacturers is to reduce vehicle weight by 25% by 2020 in order to reduce CO2 emissions.

This year, at the ceremony held as a part of the11th Convention of Croatian exporters, AD Plastik was awarded two Golden Keys. It has won awards in the categories The Most Innovative Exporter and The Best Exporter to France in 2015. AD Plastik was nominated in two more categories, namely category for emerging markets – best exporter to the Russian Federation and best exporter to Slovenia.

Marinko Došen, President of the Management Board, received the awards on behalf of the company and on that occasion he said: „I am particularly pleased that we have been awarded as the most innovative exporter because it shows that exceptional work and effort we are making have been recognized. The mission of our company is to contribute to the quality of the finished product and to the success of our customers by finding innovative and creative solutions and constant improvement of research and development of the products. It is extremely important to follow the trends and innovations in the automotive industry in order to keep up with our competition, that is to be ahead of them. For a several years in a row we have been receiving awards „The Golden Key“ and it is an outstanding honor for us, but it also confirms the continuity of our successful business.“

Audited and consolidated annual financial statement of the AD Plastik Group and the joint stock company AD Plastik for the year 2015 has been published, as well as quarterly report for the first three months of 2016.

AD Plastik Group achieved operating revenue amounting to over HRK 1 billion in 2015, representing a growth of 14 percent compared to the previous year, while AD Plastik in Croatia recorded a growth of 25 percent. EBITDA amounted to HRK 114.88 million and EBITDA margin amounted to 11.2 percent. Group’s net profit for the year 2015 amounted to HRK 46.2 million, representing extraordinary growth compared to the previous year. Credit indebtedness decreased by HRK 69.4 million so the Group’s liquidity indicators have improved.

„Realization of operating revenue in the amount of over HRK 1 billion in 2015 indicates that we have been applying the right business model, by means of which we have made turnabout in business over the past year. Our main goal for the year 2016 is further sales revenue growth, increment of EBITDA margin to 12 percent and continuation of reduction in credit indebtedness according to business plan. Furthermore, our key goals are growth in the existing markets, efficiency improvement and strengthening financial stability as well as opening new business markets. The changes we have been making are big, but with the clear vision we have I am sure that there will be success. AD Plastik is a quality and reliable partner and that is exactly what we will persist on and keep developing in the future“, said Marinko Došen, President of the Management Board of AD Plastik. 

Revenue amounting to HRK 258.1 million was generated in the first quarter at the AD Plastik Group’s level and that was in line with the business plan and compared to the same period last year, it decreased by 1.3 percent. Achieved Group’s net profit amounted to HRK 14.6 million and, despite a slightly lower realization, it has recorded a growth compared to the same period last year. Realized EBITDA for the first quarter amounted to HRK 35.9 million and a 13.9 percent EBITDA margin was realized. The Group continues to record revenue growth in the EU and Serbian markets, namely by 3.8 percent in the observed period. Sales realized in the Russian market exceed target plan and indicate beginning of stabilization in the Russian market. Nevertheless, total revenue in Russia decreased by 16 percent compared to the first three months last year.

„In the course of the year we will stay focused on further improvement of cost efficiency so the continuation of this trend can be expected in the result. The fact that the results achieved in the observed period were within set business plan gives us reason for satisfaction, but not for relaxation. The first quarter indicates the growth in operating margins at all production sites compared to the same period last year, but also compared to the set business plan. They are also a main generator of EBITDA margin growth. We believe in achieving our business plans and goals to the satisfaction of all our stakeholders“, said Marinko Došen.

Project Experience is worth more than gold allows students with disabilities to apply for an internship in the company whose nature of work complies with the direction of their studies. AD Plastik has been part of this project second year in a row considering it to be useful and necessary. This project contributes to raising the awareness of the business community and society in whole about the problems people with disabilities are facing with when getting employed.

“This is a good way to speak openly about a specific problem, but at the same time about positive practice that should serve as an example for all companies in Croatia. Through this project students with disabilities are given chance to gain practical knowledge and experience necessary for further development of their business path. This is more than enough reason to support such project,” pointed out President of the AD Plastik Group’s Management Board Marinko Došen.

When AD Plastik participated for the first time in this project, it had a very positive experience. Young female student with disabilities was enabled to undertake internship in Solin and she has provided herself a future job in this company with her commitment and effort.

About 180 participants attended this year’s Ron Brown Forum held in Dubrovnik and organized by Croatian Chamber of Economy and the US Embassy in Croatia. The main theme of the forum „CIRAZ 2016: Harnessing Innovation to Drive Economic Growth – The Ron Brown Legacy“ was the establishment of the Center for Industrial Development of Croatia, goal of which is to improve cooperation between the scientific sector and economy.

The purpose of the Center for Industrial Development is to stimulate economic development through a concrete connection of economy and science, innovation, research and development. The project CIRAZ will be improving the future cooperation between Croatia and US through Ron Brown U.S. – Croatian Innovation Council, that is through the council for exchange of world best practices in the field of innovation.

At the first panel „Impulse to the economy competitiveness growth“, held as part of the conference, the way of making Croatian economy globally competitive has been discussed. President of the AD Plastik’s Management Board Marinko Došen has also participated in the discussion and he mentioned the importance of investing in development and innovation, emphasizing it as a generator of AD Plastik’s competitiveness. He pointed out the problem of infrastructure costs and unequal business conditions in countries where AD Plastik factories are located.

„Due to these infrastructure costs, there is a lot of room for improvement in Croatia. For the past three years, AD Plastik has invested about EUR 60 million in development, innovation and investments. This is precisely why we are competitive,“ explained Marinko Došen.