AD Plastik Group has published Interim Report by Management for the first three months of 2019 in which it has achieved operating revenue amounting to HRK 348.3 million, representing a growth of 7.7 percent compared to the same period last year. First part of the year was marked by the final stage of the production cycles of the key vehicles of AD Plastik Group, namely phase 1 of the Twingo and Smart as well as Renault Clio. A modification of serial production of the mentioned models with redesigned and modernized versions is in process, thus a serial production of the new Twingo began in late March, and the start of serial production of the Smart phase 2 and Renault Clio 5 is expected in the coming period.

Group’s net profit for the first three months of 2019 amounted to HRK 27.9 million and EBITDA amounted to HRK 46 million. This year’s EBITDA trend is not comparable to the previous year due to the different stages of the production cycles. Thus, start of production of new models will result in EBITDA growth during the year and by the end of the year integration of Tisza Automotive will also have be completed.

„In the first three months of this year we invested the greatest efforts in preparing our production sites for the start of serial production, but also in negotiations with potential and existing customers. Despite the decline in car sales in the European and Russian markets, the announcements of our customers are more than optimistic, which is a very positive indicator for further growth in our business,“ said Marinko Došen, President of the Management Board of AD Plastik Group.

Net financial result was more favorable in the observed period, and net financial debt has increased mostly due to the realization of a loan to finance investments in the parent company.

„We are satisfied with the results achieved because they are in line with what we have set and by the end of the year we will have realized the planned goals,“ said Marinko Došen.

First deals sealed for the Hungarian factory of AD Plastik Group since its integration are among new deals sealed for the European market with a total value of EUR 10.2 million. Deals have been sealed for the Hungarian market for the vehicles Suzuki Vitara and S Cross, Audi A3, Audi A3 CC and BMW 3 with a total value of EUR 3.6 million.

Suzuki has the main share in the realization of Tisza Automotive, and new deals on production of cooling fan trims have been sealed namely for the vehicles Vitara and S Cross. 

„Although this is not a big project from financial point of view, this nomination is important because of the continuity of cooperation with this renowned manufacturer and the biggest customer in our Hungarian factory. We have established a very important collaboration of our development services that will certainly result in some new realizations and challenges,” said Toni Štambuk, Sales Director for EU markets.

Deals with a total value of EUR 2.2 million on production of side trims and bumper components have been sealed with the customer Alro for Audi vehicles and deal worth EUR 0.9 million on production of headliner trims has been sealed with the customer SMP for the vehicles BMW 3. Mentioned deals will be realized at the Hungarian production site that is currently also producing components for Bentley, manufacturer with exceptionally high quality standards. Major part of the realization for Bentley refers to production of plastic components covered with special leather delivered by customer that strictly controls the process.

„By the end of 2019 full integration of Tisza Automotive into the system of AD Plastik Group is planned to have be completed and after the reorganization we have been conducting and planned investments, Hungarian production site will be fully ready for new deals and challenges. Factory has a great potential and it will certainly contribute to positioning ourselves as one of the leading global suppliers in Eastern Europe,“ said Daniel Kovač, Director of Tisza Automotive factory.AD Plastik Group has sealed new deals with its long-standing customers Renault Group and Hella. Thus, it will be producing radar brackets for the vehicles Renault Traffic and total value of the project amounts to EUR 1.5 million, as well as light housings for the vehicles Nissan Navara and Volvo V40 and total value of the project amounts to EUR 5.1 million.

Integrated Annual Report of AD Plastik Group for 2018 confirms that it was the year of record revenue and net profit of the company. Operating revenue amounting to HRK 1.3 billion has been realized in the reporting period at the Group’s level, representing a growth of 21.2 percent compared to the 2017. Group’s net profit amounted to a record HRK 89.32 million, representing a growth of 27.23 percent compared to the previous year. Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) have recorded slighter growth compared to the previous year and amounted to HRK 161.73 million.

„Record operating revenue and net profit achieved certainly give us reason for satisfaction, but a demanding year with the start of the serial production regarding large deals sealed for which preparation was made namely in 2018 is ahead of us. The year was also greatly marked by the purchase of the Hungarian company Tisza Automotive, which provides us with further growth and development in one of the fastest growing autoindustry markets,” said Marinko Došen, President of the Management Board of AD Plastik Group.

Significantly more favorable net financial result has been achieved compared to the previous year and financial position has remained very stable, although it somewhat changed due to acquisition of Tisza Automotive. Results confirm that such trend can be expected in the future.

„Apart from good results achieved, new deals worth EUR 136 million sealed in the observed period provide us with additional stability and safety. Based on deals sealed and announcements of our customers, we expect further revenue increment in this year. Significant investments in increasing production capacities at the production sites in Croatia are also ahead of us and we will also implement new sub-technologies that will add value to our existing product portfolio,“ said Marinko Došen.

Financial results, social, environmental and economic impacts, management, impact of material activities on company results and business risks management are presented in the integrated report in a detailed and thorough way. Through a quality overview of financial and non-financial indicators of the business, we improve our transparency and contribute to the trust of our stakeholders, thus Sustainability Report of the company is an integral part of the Integrated Annual Report.

With this kind of reporting AD Plastik Group aims to provide a better understanding of the industry in which it operates, business opportunities, business strategy, corporate culture and increment of company’s value.„Financial results are the most important indicator in the business of every company, but its success is also manifested through quality and structured management of social and environmental issues. We have been achieving a great progress in that segment, thus providing added value to all our shareholders,“ said Marinko Došen.

AD Plastik Group has sealed new deals for the European market with total value of EUR 46.8 million. Thus, various components for several vehicle models of PSA and FCA Group will be produced at the Group’s plants. The production of most components regarding which deals have been selaed should start already next year and projects will last four to ten years.

It will be producing grab handles at its plants for several vehicle models of PSA Group, namely Peugeot 208, Peugeot 2008, Citroen DS3 Crossback and Opel Corsa and this project is worth EUR 20 million. Grab handles are one of the products that PSA Group wants to standardize for several vehicle models, which is an additional opportunity to improve cooperation with this manufacturer.

New Jeep Compass, vehicle from the FCA Group family, will be decorated with AD Plastik’s grab handles and this deal is worth EUR 6.8 milion. The increase in existing quantities and new deals sealed will fill capacities of the Mladenovac plant, where grab handles for PSA Group vehicles will be produced for the first time.

Also, Group will be producing painted components for the PSA Group for the first time, which confirms a significant development and improvement of cooperation with this customer. Deal worth EUR three million has been sealed on production of side trims for one of the best-selling models of this manufacturer –  Citroen C3. 

Inner engine covers for the vehicle Opel Adam Crossback will also be produced at the AD Plastik Group’s plants and this deal is worth EUR 1.4 million. Opel is a new member of PSA Group and this is the first deal sealed with this customer since their merger. Production of speaker brackets worth EUR 1.7 million for the vehicles Citroen Picasso and C-Elysee will start already next year.

The presentation of the new generation of electric Fiat 500e that is announced for the Geneva International Motor Show next year is eagerly awaited. A large number of interior components and air ducts will be produced for this vehicle at AD Plastik Group factories. Unlike its predecessor, this model will be produced in Europe and it should appear on a much larger number of world markets. This project is worth EUR 13.9 million and this is another electric vehicle in Group’s portfolio. This confirms the safe direction of further growth and development in the category of electric vehicles, whose presence has been growing.

Zagreb and Ljubljana Stock Exchange held the first presentation of their markets and issuers in the United States. The event was held in New York, at NASDAQ, the world’s second largest stock exchange, in co-operation with the world-renowned Auerbach Grayson investment company, with exceptionally good responsiveness of American investors. This is the first time that the presentation of the Croatian and Slovenian capital markets has been organized outside Europe.

Croatian companies AD Plastik Group, Arena Hospitality Group, Atlantic Group, Podravka and Valamar Riviera, as well as Slovenian companies Krka, Petrol and Triglav Group have presented themselves to investors.

The leading Croatian independent investment company, Intercapital, presented the Croatian and Slovenian markets and their potential to the event participants, and the companies in summary held more than 60 individual meetings with American investors.

“First of all, I welcome the initiative of the Zagreb Stock Exchange and I hope that the presentation in New York will help attract new investors. We support all the activities of the Stock Exchange, which will enable us to revive the Croatian capital market through our joint efforts. We are satisfied with the interest shown by American investors for AD Plastik Group and I believe that the potential of our share and business will be recognized in this market as well. The AD Plastik Group has recorded very good business results over the last few years, new deals sealed provide us with stability in the forthcoming period, and we believe that it will be adequately valued through the price of our share,” said president of the Management Board of AD Plastik Group Marinko Došen on that occasion.

The Zagreb and Ljubljana Stock Exchange will continue to carry out individual and joint activities in order to increase interest in their capital markets and to strengthen the confidence of domestic and foreign investors.

“For the first time in the history of the Zagreb Stock Exchange we have organized the presentation of our most prominent issuers to American investors. We are very pleased with the interest shown and we hope that introducing American investors to our companies and the potential of the regional market will result in their interest in investing in Croatian and Slovenian companies,” said Ivana Gažić, president of the Management Board of Zagreb Stock Exchange on that occasion.

Marinko Došen was appointed a new president of the Business Council for Economic Cooperation with the Russian Federation at the meeting held in Zagreb. Thanking for the given trust, President of the Management Board of AD Plastik Group presented the draft work program of the Council for this year.

„In Russian Federation the easiest way to conduct business is to localize production. In such a way it is more or less possible to avoid complex administrative and customs regulations and procedures. Unfortunately, the difficulties between our two countries still exist but the most quality way of work is to localize your business in Russia and in such a manner to avoid external political influences that are not in entrepreneurs’ favour. AD Plastik Group has been conducting business in the market of modern Russian Federation for 25 years now. We have two production sites there in which more than 800 employees are employed and we achieve about EUR 45 million of revenue annually. Every Croatian company has an opportunity to find a niche in the Russian market that counts 150 million customers. I am personally a big supporter of the industrialization of the Croatian economy because I think that the industry must have a larger share in our GDP,“ said Marinko Došen on that occasion.

Economic relations between Croatia and Russia have stabilized and they have been growing over the past few years, and Russian Ambassador to Croatia Anvar Azimov said that economic relations always play a leading role and this is why they must keep becoming better.

After the meeting of the Business Council a seminar entitled „How to successfully conduct business in the Russian market“ was held, which presented general terms of conducting business for the EU companies in the Russian market. Special attention was paid to presenting the possibility of conducting business for Croatian companies in the Russian Nizhny Novgorod Oblast and the visit to Nizhny Novgorod Oblast is planned by Croatian economic delegation during the first half of 2019.

The Interim Unaudited Report by Management of AD Plastik Group and the Joint Stock Company AD Plastik for 2018 shows the continuation of successful business. Record operating revenue and net profit of the company have been realized, thus operating revenue of the Group amounted to more than HRK 1.3 billion, representing a growth of 21.02 percent.

Realized operating revenue increase and the favorable net financial result have provided a record net profit of the Group amounting to HRK 87.3 million and it grew by 24.3 percent compared to the previous year. In the parent company net profit increased even by 63 percent and amounted to HRK 87.03 million.

„Another demanding and successful business year in which we achieved record operating revenue and net profit of the company is behind us. The past year was marked by preparation of new projects, out of which more than seventy were open and serial production has begun for twenty of them. The year was largely marked by acquisition of the Hungarian company Tisza Automotive, thanks to which we ensured further development and growth in one of the fastest growing automotive industry markets. We are satisfied with the results achieved and deals sealed worth EUR 136 million in the observed period,“ said Marinko Došen, President of the Management Board of AD Plastik Group.

EBITDA amounting to HRK 159.7 million was realized at the Group’s level, representing a growth of 0.8 percent compared to the previous year and in the parent company it decreased by 12.8 percent primarily due to one-time costs of launching new projects.

„The year we have successfully entered will undoubtedly be marked by start of serial production for large contracted projects as well as by further technological advancements. Our customers’ announcements are very good and we expect further revenue growth based on new deals sealed. We will have significant investments in increasing production capacities at the production sites in Croatia and we will also implement new sub-technologies that will add value to our existing product portfolio. By constantly adapting to the industry in which we operate, we have set demanding goals,“ said Marinko Došen.

Financial position of the Group is stable, but it has changed compared to the previous year mostly due to acquisition of Tisza Automotive and somewhat lower EBITDA. The value of ADPL share in the reporting period grew by 4.1 percent, unlike CROBEX which dropped by 5.1 percent. The trend of dividend payments has continued in accordance with the dividend policy, thus in the previous year a dividend amounting to HRK 10 per share was paid out.

As of today AD Plastik has been officially included in the Prime Market of the Zagreb Stock Exchange. The agreement was signed by Marinko Došen, President of the Management Board of AD Plastik and Ivana Gažić, President of the Management Board of the Zagreb Stock Exchange.

On this occasion, Marinko Došen said: „It is an extraordinary honor to be among the first companies listed on the Zagreb Stock Exchange’s Prime Market. AD Plastik has been achieving very good business results and in the last few years we have made great efforts in order to achieve the desired progress in reporting and informing the investment public. Our primary goal is to reach a high level of transparency of communication with shareholders, as well as with other company’s stakeholders, for the purpose of timely and accurate informing about all key company activities and results arising from them. Our work and progress have been recognized by experts and the general public, as evidenced by numerous acknowledgements and awards we have been receiving. This is a great incentive, but also a responsibility for the future. By moving to the prestigious, but very demanding Prime Market of the Zagreb Stock Exchange, we would like to contribute to enhancing transparency and corporate governance as well as developing the overall capital market in Croatia through our example.”

Congratulating AD Plastik, Ivana Gažić pointed out: „We are extremely pleased to see AD Plastik in the Prime Market, the most demanding market segment of the Zagreb Stock Exchange, on which companies with the highest level of transparency and corporate governance are listed. AD Plastik is among the first companies that decided to join this prestigious market segment and we are pleased to continue to work together on raising the level of transparency, thus providing a positive example for the entire market. “

Just before Christmas holidays AD Plastik has donated twenty desktop computers to the City of Solin for the needs of associations, institutions and facilities. Thus donated computers were given to elementary schools don Lovre Katić, Vjekoslav Parać, Kraljica Jelena and Kralj Zvonimir, kindergarten Cvrčak, City Library Solin, Cultural Center Zvonimir, association Solinski bubamarci, KUD Salona, mountaineering association Sveti Jure and Gradska glazba Zvonimir.

While thanking AD Plastik for donation, Solin mayor Dalibor Ninčević said that this donation is an example of good cooperation between Solin entrepreneurs and the City of Solin. „In addition to the fact that we organize a reception for families of fallen soldiers, the City of Solin also organizes reception for local entrepreneurs and businessmen which we have named Entrepreneurial Synergy. The very name of that reception and gathering says it all,“ pointed out mayor Ninčević on that occasion.

President of the Management Board Marinko Došen and member of the Management Board of AD Plastik Mladen Peroš attended the computer donation. „I believe that this donation will help our fellow citizens in further work and AD Plastik wants to help the development of the community, above all the children who always need help,“ said Marinko Došen on that occasion.

The conference „Capital market awakening“ was held in Zagreb organized by Croatian Financial Services Supervisory Agency and Hanza media and it brought together a large number of prominent figures and experts from the field of politics and economy.

Along with the President of the Governing Council of Hanfa Ante Žigman and Gojko Drljača, Hanza Media’s representative as hosts, the Agriculture Minister and Deputy Prime Minister of the Republic of Croatia Tomislav Tolušić as well as Finance Minister Zdravko Marić made an introductory speech, after which the presentation by the senior economist of the European Investment Bank, Laurent Marin, was held. The European capital market continues to recover but it is still unable to provide the necessary support to the corporate economy, estimated laurent Marin in his speech to the conference participants.

Governor of the Croatian National Bank Boris Vujčić, President of the Governing Council of Hanfa Ante Žigman, President of the Management Board of AD Plastik Group Marinko Došen, President of the Management Board of Podravka Marin Pucar, investor Nenad Bakić and the professor at the Faculty of Economics Danijela Miloš Sprčić took part in the following panel discussion.

President of the Governing Council of Hanfa Ante Žigman warned that ten hard years remain behind the domestic capital market. Along with the crisis that had lasted long and had great consequences, there is still Agrokor as the latest very heavy burden to the capital market. Žigman is convinced that the new Capital Market Act will restore the confidence of small investors in the capital market.

Participating in the interesting panel discussion, President of AD Plastik Group’s Management Board Marinko Došen emphasized that the capital interest does not sufficiently follow growth of companies, thus the growth of the AD Plastik Group. „We can list various indicators, statistics and draw conclusions why investors’ interest for companies that are doing well is weak. The key answer to why is that so lies in the general level of confidence in the capital market and the insufficient growth of the economy and industrial production,“ said the President of the Management Board of the AD Plastik Group.

This conference was an opportunity to talk about the perspective of the Croatian capital market, considering ten years during which it had not succeeded in waking up and that began already with the financial crisis, continued with the recession and with the impact of other unfavorable factors.