The Integrated Annual Report of the AD Plastik Group for 2020 has been published, containing relevant information on the company’s activities and business operations, revised financial results and sustainability indicators according to GRI standards.

The Group’s operating revenue amounted to HRK 1.2 billion and recorded a decrease of 20.9 percent compared to the record 2019. This is a consequence of the impact of the crisis, but the results achieved are better than the first predictions at the beginning of the pandemic. The Group’s EBITDA amounted to HRK 165.9 million and recorded a decrease by 16 percent. Serial production of new vehicle models started in 2019 and the sale of non-operating assets had a positive impact on EBITDA. Net profit of HRK 46.9 million was generated, and net financial debt was reduced by HRK 104.6 million.

“The past year was marked by pandemic that caused a global crisis in all segments, so it also affected the business of our company. Despite the very demanding circumstances and challenges, we are satisfied with the results achieved and they are still above the original predictions announced at the beginning of the pandemic. Like most industries, the automotive industry has been severely affected by the crisis, but the development of new vehicle models and plans for the future have not been stopped at any point. This fact is supported by the EUR 130.6 million of new deals selaed in the past year,” said Marinko Došen, President of the Management Board of AD Plastik Group.

AD Plastik Group meets very high standards of sustainability in economic, but also social and environmental topics that are incorporated into all elements and processes of business and management. In the past year, special emphasis was placed on protecting the health and safety of employees, but also on preserving job positions. At the same time, other indicators of sustainable business were applied and improved, which was a special challenge given the circumstances and structure of the company.

The non-financial part of the fourth in a row  Integrated Report of AD Plastik Group has been verified by HR BCSD, whose opinion, among other things, states: “AD Plastik Group is an example of a business organization with many years of application of social responsibility and focus on sustainable development, and we believe that namely this strategic commitment has brought benefits in crisis situations, and enabled rapid adjustment and recovery. The Integrated Report for 2020 has again met expectations, both from the point of view of the exhaustiveness of the content as well as from the point of view of year-over-year-growth in relation with clarity and transparency of presentation of indicators and other supporting information. The report illustrates quality and responsibility that is in line with the reputation of the company which is a leading manufacturer of components for the automotive industry in this part of Europe.“

Based on market indicators in the last quarter of 2020, which gave reasons for moderate optimism, the report also includes the company’s targets for 2021, which indicate a slight increase in operating revenue.

“In the circumstances in which we operate, caution is necessary because the pandemic is still ongoing and its course is affecting the overall economic picture. Although the number of newly registered vehicles is expected to grow in the markets where we operate, our plans are more conservative, but we believe they are also achievable. It will take some time for the market to fully stabilize and return to pre-crisis figures, but signs of recovery are gradually emerging. In the most difficult moments, we have shown the necessary knowledge, competencies and quality, and I believe that we have justified the trust of our stakeholders, and we will continue to move on in this direction in the future,” said Marinko Došen.

The just published interim unaudited results 2020 of AD Plastik Group are better than the first forecasts. The Group’s operating revenue amounted to HRK 1.2 billion and it decreased by 20.2 percent compared to the previous year, as a result of the impact of the crisis caused by the COVID-19 virus pandemic.

The parent company’s EBITDA amounted to HRK 115.4 million and they decreased by 4.9 percent, while at the Group level they amounted to HRK 166.5 million, which was a decrease of 15.7 percent. The serial production of new vehicle models, which started in 2019, and the sale of non-operating assets in Makarska in 2020 primarily had a positive impact on EBITDA. The realized net profit at the level of the Group amounted to HRK 53.4 million, which was by 42.7 percent lower compared to the previous year, and the parent company recorded a slight decrease of 14.5 percent, so the net profit amounted to HRK 69.08 million. The financial stability of the Group has been preserved and net financial debt has decreased by HRK 104.5 million, or HRK 81.6 million in the parent company compared to 2019.

“Until the beginning of the pandemic, the business operations were carried out in accordance with the set business plans, but already during March and April, almost all car manufacturers stopped the production due to the force majeur. Consequently, we too were forced to temporarily close our factories, which was the most difficult period in the business. We reacted quickly, took all necessary measures to protect the health of our employees and preserve the sustainability of our business. We adjusted our plans very carefully and continued to operate in line with the circumstances imposed by the market. Production gradually started in line with customer activities, and capacities grew in line with their dynamics. Although like most industries the automotive industry too has been hit by the crisis, the development of new vehicle models and plans for the future of our customers have not been stopped. This is evident also in new deals sealed in last year in the amount of HRK 130.6 million,“ said  Marinko Došen, President of the Management Board of AD Plastik Group.

The pandemic has also significantly affected capital markets around the world, thus the ADPL share price in 2020 ranged from the maximum price of HRK 202 in February to the minimum price of HRK 93 in March. The share price at the end of 2020 amounted to HRK 160, which was a decrease of 16.2 percent compared to the end of 2019.

“It will take some time for the market to stabilize and return to pre-crisis figures, but signs of recovery are gradually emerging. We operated better than the first forecasts predicted and ended the year with mild but I believe realistic optimism. Plans for this year are more conservative than usual given the circumstances and duration of the pandemic, but we are confident that they will realize. We have proven in the most difficult moments that we have the necessary knowledge, competencies and quality, and these are our key values that we will know how to use,“ said Marinko Došen.

The Management Board of AD Plastik Group signed a new Collective Bargaining Agreement for 2021 with trade unions, pursuant to which employees of AD Plastik d.d. shall maintain a high level of social and substantive rights. Having signed the said agreement in these difficult times and business conditions characterized by strong negative trends, AD Plastik Group has once again confirmed that it is a responsible employer ready for social dialogue. The fact that the employees are the most important component in the development process of AD Plastik Group has thus once again been confirmed by the Company Management Board in the current period of new, severe and uncertain working conditions resulting from the pandemic.

The agreement has been concluded for a period of one year between the Management Board of AD Plastik d.d. and the three trade unions active within the framework of the Company; namely, Autonomous Trade Union in the Power, Chemistry and Non-Metal Industry of Croatia, the AD Plastik RIS Zagreb Trade Union and the independent trade union of employees of AD Plastik Solin.

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AD Plastik Group received the CSR Index award in the category of Social Responsibility Policies of Diversity and Human Rights Protection, and the award was received on behalf of the company by Ivan Čupić, a member of the Management Board for Production, Logistics and Quality.

“Human rights protection, diversity and equal opportunities policy are part of the corporate culture we live every day. Fair business, safe working conditions, education and respect for human values are just some of the values that we continuously promote within the company. When this is recognized by the professional public, then it is an additional incentive for us to continue to be even better,” said Čupić, thanking for the award.

AD Plastik Group continuously promotes diversity, non-discrimination and inclusiveness in the workplace and is among the first companies in Croatia to sign the Diversity Charter.

The CSR Index awards were presented for the thirteenth time as part of the annual Conference on Corporate Social Responsibility held in Zagreb, organized by the Croatian Business Council for Sustainable Development (HR PSOR) and the main partner of the Croatian Chamber of Economy (HGK). This year, the awards for the best achievements in corporate social responsibility were awarded in nine categories, and more than a hundred registered companies competed. The CSR Index is a method of assessing corporate social responsibility in Croatia based on a ranking system that enables an objective assessment of corporate social responsibility practices and comparison with the practices of others.

The conference was opened with a panel discussion “European Green Plan: Croatia’s readiness to achieve goals”, which brought together leading experts in corporate social responsibility and sustainability, corporate managers and organizational leaders.

The business results of the AD Plastik Group for the first nine months of 2020 have been published, in which the consequences of the crisis caused by the COVID-19 virus pandemic are evident. Operating revenue of the AD Plastik Group in the reporting period amounted to HRK 841.68 million and it was lower by 23.2 percent compared to the same period last year.

EBITDA of the Group amounted to HRK 108.63 million, being lower by 18.7 percent, while the parent company recorded its growth by 5.7, which was largely influenced by the the sales of non-operating assets and government incentives used. Despite very demanding circumstances, the Group’s net profit amounted to HRK 23.79 million, which was a decrease of 62.8 percent compared to the same period last year.

“Although the impact of the crisis is evident in all markets in which we operate, in the third quarter the indicators and announcements of our customers were somewhat more optimistic. Namely, there was a slight increase in car sales, and our customers announce larger quantities, which will certainly also have a positive impact on our capacities, and therefore the results. New deals sealed worth EUR 106.6 million during this reporting period support the fact that car manufacturers have not stopped their activities and development planning. If customers announcements come true and there are no major surprises, the expected decline in the Group’s operating revenue for 2020 will be about 25 percent,” said Marinko Došen, President of the Management Board of AD Plastik Group.

The financial stability of the Group has been preserved, so net financial debt decreased by HRK 59.9 million compared to the end of last year, or by HRK 54.2 million in the parent company. The NFD/EBITDA ratio was 2.21 for AD Plastik Group and 2.56 for the parent company.

“As the COVID-19 virus pandemic still goes on, our absolute priorities are employee health and safety protection, as well as business sustainability and financial stability. We have been taking all necessary measures and have adjusted our plans, costs and investments to the new circumstances. The Company’s liquidity and good balance sheet have been ensured, which will make our business easier in these challenging circumstances,“ said Marinko Došen.

As part of one of the largest business conferences in Croatia Big Plans Day 2020, organized by the business weekly Lider, a panel discussion was held on the topic Business development and risk management. Along with the President of the Management Board of AD Plastik Group Marinko Došen, the panel was attended by the founder and member of the Management Board of Business Intelligence Anita Cvetić Oreščanin, the founder and President of the Management Committee of JGL and the founder and President of the Supervisory Board Tokić d.o.o Ilija Tokić. The discussion was moderated by Miodrag Šajatović, Editor-in-Chief of Lider.

Planning in uncommon conditions, experiences during the crisis and recovery predictions were the main topics of the panel discussion.

“I believe that the automotive industry will recover faster than planned, so in 2022 we can expect a return to the volumes before the crisis. Already next year will be a year of recovery for the industry and for us. Announcements of our customers, which are better than our expectations, also give us reasons for mild optimism. The number of vehicles on assembly is higher than forecast in May and June, which is very good. I think the worst period is behind us. Cars have proven to be one of the safest means of transport in this crisis as well, so there is no reason to fear. Vehicles will certainly continue to be produced and the automotive industry will be developed. For example, no Renault Clio in Slovenia can be produced without our components. Slovenian Revoz now assembles over 600 vehicles a day, which is a very good trend. Our plans are ambitious, we have adapted them to the current situation, but we are planning for the long term. We currently have 50 active projects whose serial production is yet to follow. The new deals that we have sealed speak in favor of that also,” said Marinko Došen, among other things.

For the twelfth time, Big Plans Day gathered key names of the Croatian business community, and despite very challenging times, there was no lack of optimism among the participants. After the welcoming speeches of the organizers and partners, introductory speeches were given by the Governor of the Croatian National Bank Boris Vujčić, the Minister of Economy and Sustainable Development Tomislav Ćorić and the President of the Republic of Croatia Zoran Milanović.

AD Plastik is the best large exporter in 2019 and also the best exporter to France. At the Golden Key Awards Ceremony, as part of the 15th Convention of Croatian Exporters held in City Plaza Zagreb under the auspices of the Government of the Republic of Croatia, the awards were received on behalf of the company by the President of the Management Board Marinko Došen.

In addition to the awards received, AD Plastik was nominated in two other categories, namely for the best exporter to Slovenia and the most innovative exporter.

While taking over the main award for the best large exporter, Marinko Došen expressed his gratitude to the organizers on behalf of all the winners: “It is a great pleasure and honor for me, but also an obligation for the future to receive this award for the second time in a short period of time. This is the result of the dedicated work of all our employees and constant investment in knowledge, competencies and competitiveness. Last year we achieved historically the best business results, for the fifth year in a row we have been achieving double-digit growth in a very demanding industry and we continuously improve all elements of business success. This crisis has slowed us down in further plans, but it will certainly not stop us. Newly sealed deals, over 50 projects we are working on and the capacity utilization that is slowly returning to normal give us the reason for the slight optimism in these rather complex times. Congratulations to all the award winners because exporters really need to be the backbone of the economy“.

After the awards ceremony, a panel discussion was held on the topic “The impact of the corona crisis on the Croatian economy and exports”, which was opened with introductory speech by the Governor of the Croatian National Bank Boris Vujčić. The panel discussion was attended by: Tomislav Ćorić, Minister of Economy and Sustainable Development, Marinko Došen, President of the Management Board of AD Plastik, Marijana Ivanov and Josip Tica, professors from the Faculty of Economics, University of Zagreb and Darinko Bago, President of Croatian Exporters.

The consequences of the crisis caused by the COVID-19 virus pandemic are also reflected in the published business results of the AD Plastik Group for the first six months of 2020. Thus, the operating revenue of the Group amounted to HRK 548.78 million and were lower by 23.1 percent compared to the same period last year.

Group’s EBITDA amounted to HRK 75.46 million, being lower by 27 percent, while in the parent company its growth of 4.9 percent was realized, which was largely influenced by the sales of non-operating assets and use of government incentives. Despite the circumstances, Group generated a net profit in the amount of HRK 17.31 million, which was by 69.6 percent less compared to the same period last year.

“Despite the very challenging circumstances, we have shown a high level of knowledge, quality and reliability also in these demanding times without compromising at any moment the delivery and production processes of our customers. Brand new and unexpected challenges that we have faced, caught us after the business year in which we achieved the best business results in history, which greatly eased the situation for us. We have adapted our ambitious plans and goals to the circumstances and taken all necessary measures and activities to ensure a high level of safety for our employees, sustainable business and financial stability of the Company. We have adjusted the investment plan, rationalized costs and taken all measures in order to maintain the best possible liquidity,“ said Marinko Došen, President of the Management Board of AD Plastik.

Net financial debt was significantly reduced compared to the end of the previous year, which was mostly influenced by the sales of non-operating assets, as well as the inflow from the part of tools. The NFD/EBITDA ratio was also more favorable, amounting to 2.13 at the Group level.

“The good news is that in the first six months we sealed new deals worth EUR 92.5 million for the future period, which confirms that our customers have continued with their activities and plans. A demanding year lies ahead of us that requires complete focus, determination and perseverance and sudden external influences that have temporarily slowed us down in our development plans certainly won’t stop us,“ said Marinko Došen.

AD Plastik Group has sealed new deals with AvtoVAZ with a total value of EUR 57.7 million for the new Lada Niva vehicle model. This longest-lasting vehicle in the Russian market will be produced at the AvtoVAZ factory in Togliatti, and compared to the model that has been on the market for more than seventeen years, it will undergo a complete redesign. AD Plastik Togliatti will produce various exterior components for Lada Niva such as front skirts and rear skirts, wheel arch housings, absorbers, front and rear fender protectors and side trims. In addition to production, AD Plastik Group is also in charge of the development of cover grilles and exterior pillar trims. The start of serial production is planned for the first quarter of 2023, and the estimated duration of the project is ten years.

At the same time, new deals totaling EUR 3 million have been sealed for the Nissan Qashqai, whose front fender protectors will be produced at AD Plastik Kaluga. The start of serial production is planned for the last quarter of 2022 with an estimated project duration of six years.