Business Dialogue - CorD Magazine No.168

Leaders’

JEAN PIERRE MESIĆ, Managing Director of Renault Nissan Adriatic

ANDREJA PAVLOVIĆ, Executive Director of the Nordic Business Alliance

HARDER. digital SOVA

Record Year

Good News Ahead

Night Vision For The Future

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MEETING POINT HOM PARVIZ, General Manager

Hyatt Is More Optimistic Than Ever About The Future PAGE /42

MILE TODOROVIĆ, CEO of ATB SEVER d.o.o., SUBOTICA

Electric Motors And Generators For The Whole World PAGE /46

NICOLAS BERGGRUEN

Homeless Billionaire PAGE /28

JEAN PIERRE MESIĆ, MANAGING DIRECTOR OF RENAULT NISSAN ADRIATIC

Record Year We’re extremely satisfied with our results in the Adriatic region, for which I am responsible: in the first six months, private vehicle sales across the entire region increased by 11% and light commercial vehicle sales were up 15% compared to the same period last year, highlights Renault Nissan Adriatic Managing Director Jean Pierre Mesić

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he automotive industry has become extremely demanding.

Huge competition has massively imposed new standards in production, and the WLTP protocol, which came into force on 1st September, will also change the European automotive scene.

The last few years have been record-breaking ones for the Renault group, with a market share of almost 20 per cent. Which models have been the most popular and why?

Last year was another new record year for the Renault group globally.

Commercial and financial results are a result of the strategy we’ve applied over the past few years and the efforts of all employees of the group.

We are also extremely satisfied with our results in the Adriatic region, for which I am responsible: in the first six months, private vehicle sales across the entire region increased by 11% and light commercial vehicle sales were up 15% compared to the same period last year.

When it comes to Serbia, the most important models leading to this success are the Renault Clio, which found its place among many private buyers, but also among a significant number of large companies that opted for its deliv-

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ery version. As for the Dacia brand, the leader in sales is the Sandero model, of which we are particularly proud, considering that it represents the best-selling model on the private buyers market, and continues to firmly occupy that position so far in 2018.

The new Worldwide Harmonised Light vehicles Test Procedure (WLTP) protocols for measuring exhaust emissions and fuel consumption were introduced in Europe as of 1st September. How will these protocols impact on the markets of the Adriatic region?

The WLTP protocol has compelled

By 2022 we will have eight Z.E. 100% electric models and 12 electrified solutions

all automotive manufacturers to efficiently process engines with the goal of reducing emissions of harmful gases.

New technologies are distinguished by the reduced environmental impact of vehicles, but apart from that they also have their own cost. We will, as manufacturers, take on part of that cost ourselves, but part of it should also be taken on by our customers. This will lead to cars being more economical and environmentally friendly, but also

somewhat more expensive. In response to market demands, we’ve designed a range of petrol and diesel engines that meet the new standards, and by 2022 we will have eight Z.E. 100% electric models and 12 electrified solutions.

In many European Union countries, including Croatia and Slovenia, which are part of our Adriatic region, there are still uncertainties about when application of the WLTP protocol will precisely begin, and how special taxes on motor vehicles will be calculated. The impact of WLTP will be felt the least in Serbia, as the tax on vehicles is not linked directly to harmful gas emissions.

Renault recently introduced innovations to operations in Poreč. What is at the basis of these changes?

Presentations of automotive companies often boil down to the presenting of new models, modern engines and innovative technologies. We wanted to go a step further by telling the other side of the story. It was with this in mind, in June, that we organised a great media presentation of all the new innovations that the Renault Group offers in its post-sale services. Thus, we offer our clients multiple programmes, including “Program 5+”, “Extended Guarantee”, “Maintenance Agreement” etc., and as of next year - in the spirit of digitalisation - we will provide them with our “Online offer”.

ANDREJA PAVLOVIĆ, EXECUTIVE DIRECTOR OF THE NORDIC BUSINESS ALLIANCE

Good News Ahead We have high expectations regarding the Nordic Month and the Nordic Business Forum, which we expect to involve the visit of the largest Nordic trade and commerce delegation in recorded history

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he Western Balkans are coming into the focus of many Nordic players, including international organisations like the Nordic Council of Ministers, the Swedish International Development Agency, Innovation Norway, Team Finland and Danish Industries. It would be an understatement to say that we have an opportunity, but since that is so, the agenda of the Nordic Business Alliance will be to utilise that opportunity to the benefit of all - says Andreja Pavlović, executive director of the Nordic Business Alliance, in an interview conducted just days prior to the start of this year’s “Nordic Month”.

What can we expect during this year’s Nordic Month event?

The efforts of the Nordic Business Alliance, the Embassies of Denmark, Finland, Norway and Sweden, the support of the Nordic Council of Ministers – this all led to our activity plan that is making October a month when we will have a peak in Nordic business interest compared to previous years. The concept we developed has been a result of our years of experience and work, and is based on analytics, feedback and our long-term strategy. Starting with

our Digital Conference on 9th October, “NorDig”, we will be moving on to receive business delegations from Denmark, Finland and Sweden who are visiting the Western Balkans region in the four-day format of the Nordic Business Forum.

This Forum will start on 16th October and conclude on 19th October with an Investment Conference in the Palace of Serbia, which we are co-organising

We are very excited about this year’s Nordic Month, as it is the first time we’ve been active at this level in terms of the coordination and intensity of commercial and trade projects and activities

with the President of Serbia, the Government of Serbia and the Western Balkans Chamber Investment Forum. This event will feature a roundtable discussion with the President of Serbia that will be attended by all our member companies and will include an open discussion with several Ministers of the Government of Serbia, while we will have B2B meetings with Western Balkan companies chosen by reputation, size and success. At the end of the month, we will go further by organising a joint B2B event with our partners in the EU delegation and

the business associations of Belgium, Croatia and Greece. As a direct result of us focusing on all aspects of using the opportunity we have, we will be a partner in organising the “Nordic Business Transformation” global conference, to be held in Stockholm from 19th to 21st November. This is one of the most significant annual business events in the Nordic region, with its relevance confirmed by the participants that will this year include the Global Vice President of Carlsberg, the Director for Continuous Improvement of LEGO, the Head of Banking Operations of Nordea, the Vice President of Novo Nordisk and the HR Operations Director of Telenor, among many other prominent Nordic business figures.

What are your expectations of this forum? Are we still in the phase of familiarisation or will be more about convergence and collaboration?

The expectations are high. We expect the Forum to involve the visit of the largest Nordic trade and commerce delegation in recorded history, and we will have good news in the department of Nordic investments that will be made public during the Forum. We have gone through the phase of getting to know each other, and I am jubilant to see that we are now on the verge of gaining the long-awaited results of efforts exerted to date. We have the ambition to make this Forum an annual event, and we will be working hard to make our first such event the best it can possibly be.

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Taste “If Mitrovic (owner of Pink TV) considers me to be the inquisitor against bad taste, spiritual poverty and profanity, I see that as a kind of compliment and I thank him.” – VLADAN VUKOSAVLJEVIĆ, SERBIA’S CULTURE AND INFORMATION MINISTER

LOCAL NEWS

ALIBUNAR WIND FARM

WIND ENERGY FOR 38,000 MORE HOUSEHOLDS Belgian company Elicio opened another wind farm in Serbia, with 21 turbines with a total capacity of 42MW. The €80 million will be supplying 38,000 more households with wind energy.

The official opening ceremony for the Alibunar Wind Farm was attended by Minister of Mining and Energy Aleksandar Antić, Ambassadors of the Kingdom of Belgium and Switzerland, representatives of IFC, UniCredit Bank, representatives of the Provincial Government, Municipality of Alibunar and Financial support to the project was also provided by the IFC Group of World Bank, UniCredit Bank, FMO and GGF, which invested €60 million, confirming their dedication to green energy projects and the fight against climate change.

SBERBANK SRBIJA

IN FIRST HALF OF 2018 PROFIT OF €6.44 MILLION During the first six months of 2018, Sberbank Srbija made a profit of €6.44 million, which is 25 percent more than in the same period last year. At the same time deposit growth was recorded of as much as 32 percent compared to the same period of 2017, as well as the increase in total loans and advances, while the number of non-performing loans decreased by 43%, reaching an NPL ratio of 11.52%.

Such good results have been achieved thanks to the increasing confidence of the existing but also of numerous new clients, process optimization and constant innovations that Sberbank Srbija implements in its operations.

MERCEDES-BENZ

NEW GENERATION MERCEDES-BENZ C-CLASS Star Import, general distributor for Mercedes-Benz in Serbia, Montenegro, Bosnia and Herzegovina and Albania, organized a regional presentation of the new generation of C-Class for media and customers on 24 September in the exclusive Hilton Hotel. The undisputed leader in technological innovation in world motoring fascinated guests both with a car presented with the perfect musical and light performance, and high level of luxury and aesthetics. Now, in the fifth year of production, the C-Class is the most successful series of Mercedes-Benz models and can boast many improvements. The focus of the redesign was the front of the vehicle and the front and rear lights, while the electronic architecture is completely new. The premiere was attended by selected guests, who after the performance had the opportunity to get to know the new model in a pleasant atmosphere supported by the performance of the string quartet Mystic Cellos and the choire Glasne Žice.

TIGAR AD PIROT

GLOBAL SPORTS GOODS RETAIL CHAIN IN SERBIA FROM 2019 Representatives of Decathlon, a global sports goods retail chain, which operates in more than 40 countries and which will have its stores in Serbia from 2019, pronounced Tigar AD in Pirot and company with good practice and raised its rating to class B following the tour of the Pirot-based footwear factory.

The cooperation is based on the production of sports and hunting boots, as well as sailing boots and boat crew boots in the past months. This scope of the cooperation will probably make the said chain the most popular among the purchasers of the goods made in the facilities in Pirot next year. These facilities are the main suppliers of rubber boots combined with metal for the armed forces in the Nordic countries.

Decathlon is one of their most important partners, with which they’ve cooperated for eight years. In this period, the realization of the arrangements with Decathlon has grown by as much as 120%, whereas, financially, the increase amounts to as much as 185%.

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UNDP

“LET’S GET TO KNOW EACH OTHER”

In what ways can citizens participate in the local budget planning process? How can they suggest for which purposes the budget will be spent? Can they assist in the decision-making process as to what in their municipality or town should be financed from the local budget, what is a priority for restoration or construction? Answers to these and similar questions referring to greater transparency of the public finance at the local level were provided on September 18 by representatives of the State Audit Institution, Standing conference of towns and municipalities (SKGO), Belgrade Fund for Political excellence, Municipality of Ruma and the United Nations Development Program (UNDP). They gathered at the presentation of the national promotional campaign “LET’s get to KNOW each other” organized by UNDP with the support of the Government of Switzerland, within the project entitled “Audit improvement at the municipality level with the aim of strengthening responsibility and effectiveness in public finance management”.

Manners “I told you already yesterday that I know you are not too smart, but there is no reason to make you more stupid than you are and that you do not understand what you have said about your own people. You said that people are stupid” – ŽELJKO MITROVIĆ, OWNER OF PINK TV

Placements postings

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appointments@aim.rs

LIZ BENISON, NEW MANAGING DIRECTOR OF ARRIVA GROUP Arriva Group has announced the appointment Liz Benison the new managing director who will be responsible for its operations in several countries, including Serbia.

During her career she led the transformation of companies in several fields, including engineering, manufacturing and financial services. Most recently she has worked Divisional Chief Executive leading one of two operating divisions for Serco Group in the UK and Europe. She will report directly to CEO Manfred Rudhart and will be responsible for Arriva Group’s operations in several countries, including Serbia Part of the managing directors responsibilities is to grow the companys presence and innovation efforts to support specific passenger transport solutions required by local authorities, Governments and passengers in those markets.

JELENA JAZIĆ, NEW DIRECTOR OF THE MCCANN BELGRADE AGENCY Jelena Jazić is the new director of the McCann Belgrade agency. Jelena Jazić was previously marketing director of Air Serbia. She knows the agency processes very well because on two occasions, as marketing director of Carlsberg and Vice President Marketing & Strategy at Delhaize, she worked closely as a client with McCann Belgrade.

“It is a great honour, but also a great challenge to become part of the McCann team. Our task in future remains to improve the results of the companies we work for, using realistic, innovative and creative ideas. I am confident that my experience, which I have gained working for the most important multinational companies, will be of great help, and that together with my new colleagues I will enable McCann to maintain a leadership position in innovation and communication with clients”, says Jelena Jazić.

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HARDER. digital SOVA

Night Vision For The Future Stable markets and increasing exports over the longer period, significant investments in and expansion of infrastructure, continuous R&D in different fields, modern-organised production with a major database controlling every step in the process and investments in human resources - these were the key factors of success

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arder Digital Sova has a tradition in vacuum technology dating back more than 40 years.

Specialised in the production of electro optical vacuum devices in the field of night vision technologies, its production portfolio includes a wide range of image intensifier tubes and night vision devices for image transfer in poor visibility conditions.

The company was privatised in 2008 and its main strategic partner is German company Harder Digital, which is responsible for the complete international marketing. It was a big challenge to develop such a specialised electro optical company in competition with the multinational corporations that are the top players in this field.

Harder Digital Sova is today ranked among the world’s top ten companies specialising in night vision technologies.

Stable markets and increasing exports over the longer period, significant investments in and expansion of infrastructure, continuous R&D in different fields, modernorganised production with a major database controlling every step in the process and investments in human resources - these were the key factors of success.

The company has received many awards from Serbian institutions as the

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most advanced company, as well as the Serbia Chamber of Commerce Award - The Best of Serbia.

A strategic decision of the company to head in a new direction in terms of R&D was considered carefully over the last two years, and the main guideline is to focus on the use of developed technologies for civil applications, combined with a sophisticated multisensory platform and specialised cameras, always with improved image software for higher picture quality.

The main platforms for the launch of

We don’t only look through the night, we look to the future

such R&D projects were the Horizon 2020 EU Projects and the Serbian Innovation Fund.

To create a base of the elements necessary for success in those projects, a few important activities were undertaken. Namely: creating and educating engineering staff within the company who will focus solely on projects; and establishing cooperation with universities in Belgrade and Niš, including the Belgrade Faculty of Electrical Engineering, Niš Faculty of Mechanical Engineering and Niš Faculty of Electrical Engineering, all of which will participate in projects.

HD Sova has already applied to these

Funds and received two projects as a result: one Horizon 2020 project and one Serbian Innovation Fund project.

The first of these project, under the HORIZON 2020 programme, is SMART (Smart Automation of Rail Transportation), in which four 4 universities are presented (two from Germany and one each from Bulgaria and Serbia) and HD Sova is the industrial partner. The goal is to develop a system for detecting obstacles at long distances on rail lines, both during the day and at night, and regardless of weather conditions, and to incorporate the solution into the ATO module (Automatic Train Operation – Autopilot). The project is halfway through - a prototype has already been made and was on display at the INNOTRANS exhibition in Berlin from 18th to 21st September this year.

Potential major customers include Deuce Ban and Bombardier-France.

The other project, co-financed by the Serbian Innovation Fund, is to develop an intensified day/night digital camera with image enhancement. This camera can be used for border controls, surveillance and in various crisis situations. It has also attracted interest from possible customers, especially police forces and border control services. This project is in the early stage of realisation.

The benefits of these innovative projects will be the creation of a new range of optoelectronic products with significant financial support from Funds. HD Sova will be very active with more new projects in the period ahead, as a new model for R&D financing.

Guarantees

REGIONAL NEWS

“If we ever reach an agreement (with Pristina), Serbia would need to get clear guarantees that it would become an EU member state in 2025”. – ALEKSANDAR VUČIĆ, PRESIDENT OF SERBIA CROATIA

A DECADE OF THE INNOVATION INSTITUTE

MONTENEGRO

NATO - THE BIGGEST INVESTOR Montenegro’s Central Bank announced the data for foreign investments that reveal that during the first half of this year there is a doubling of the investments from NATO’s country members compared to the same period last year when the country still wasn’t a member of the Alliance.

During the first half of 2018, there were direct foreign investments in Montenegro in the amount of €403,5 million, and €215,2 million were investments from NATO’s country members, which is significantly more compared to the same period, last year when the countries from the alliance have invested €96,6 million in the Montenegrin economy. The biggest investors in Montenegro are Italy, which is at the top of the list with invested €72 million, Hungary (€54 million), Turkey (€29 million) and Belgium (€11 million). On the other hand, the latest data about the direct foreign investments published by the National Bank of Macedonia reveal that during the first half of this year, the foreign investors have invested €325 million.

BULGARIA

The Innovation Institute, Zagreb is a non-profit organization that combines knowledge and practice in the form of developing the innovation potential of individuals and companies, has celebrated ten years since its establishment in 2008.

In the Westin Hotel over 150 key people from leading regional companies and partners of the Institute gathered to mark and celebrate this anniversary together. The focus of the Innovation Institute is on structuring value creation strategies, instead of redistributing existing ones, in order to successfully develop ambidextrous innovation systems. In this way, the company at the same time balances efficiency where it exploits and maximizes value in the existing business (exploitation), and innovation where it explores and develops new strategic opportunities to create value in a new business (exploration).

ROMANIA

UAE WANTS TO INCREASE INVESTMENTS Emirati Sheikh Hamdan bin Zayed Al Nahyan made an official visit to Romania during which he had a meeting with president Klaus Iohannis. The two officials talked about EMIRATI SHEIKH HAMDAN BIN ZAYED the development of the bilateral relations AND PRESIDENT KLAUS IOHANNIS between the two countries, especially in the business area. The Emirati high official said that his country is interested in increasing investments in Romania, according to a press release of the Romanian Presidency. Al Dahra, a group of companies controlled by Sheikh Hamdan bin Zayed Al Nahyan, recently bought Romanian company Agricost, which operates the biggest farm in Romania, located on the Great Braila Island on the Danube.

BULGARIA HAS SOME OF THE BEST CONDITIONS FOR DOING BUSINESS

ALBANIA

According to Bulgarian Prime Minister Boyko Borisov, this country has some of the best conditions for doing business in Europe. “Financial stability is something that is usually appreciated in time, and there are temptations of populists to spend money in every country,” he said.

The prime minister reiterated that Bulgaria has a diminishing foreign debt and a growing gross domestic product.

During his meeting with members of the American Chamber of Commerce, Borisov said that the share of cigarette smuggling will fall below 5%. He reminded that when the government came to power, this share of smuggling was 34%.

“Now that we hit such a large number of illegal factories, it will fall below 5%,” the prime minister said.

Good results in the fight against smuggling and corruption will allow salaries in the budget sector to rise by 10% from 1 January.

Albania’s first national airline company, a joint venture with Turkey’s flag carrier Turkish Airlines (THY), launched its first test flight mid last month. Albanian Prime Minister Edi Rama, Turkey’s ambassador to Tirana Murat Ahmet Yöruk and Albanian ministers as well as officials from Turkish Airlines participated in a ceremony at Tirana’s Mother Teresa Airport. Speaking at the event, Rama said Air Albania was a strategic and long-term institution backed by Turkish Airlines, an undisputed global actor in the airline industry. Turkish Airlines said the new company will operate in the field of passenger and cargo transportation. The new company will be established with capital of up to $30 million. The flag carrier said stakes of 49 percent, 41 percent and 10 percent are being held respectively by Turkish Airlines, MDN Investment SHPK and Albcontrol, which manages Albania’s airspace and air traffic, representing the government of Albania.

AIR ALBANIA LAUNCHES MAIDEN FLIGHT

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HOM PARVIZ, GENERAL MANAGER

Hyatt Is More Optimistic Than Ever About The Future True to the origins of the brand, innovating through architecture and interior design, from the way the space is used, to the “one stop experience” philosophy

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enovation projects will carry on into 2020, which conveys a clear and positive message that the company continues to invest in the property and upgrade of the building, and puts an end to the recent circulating story as Our Hotel is NOT for Sale.

The sophisticated luxury of your hotel has contributed for almost three decades to Belgrade’s prestige as a destination. What are the values that distinguish the Hyatt chain from the competition?

We are committed to delighting our guests around the world, enriching every visit and inspiring meaningful connections with colleagues, with friends and family, and with us.

In terms of business objectives, with various hotel projects being developed in the city of Belgrade, we will ensure to continue having a cutting-edge approach to our product offerings.

The market imposes its own demands and, in this sense, also changes to ownership structures. Is that also a current issue for you?

Belgrade Mixed Enterprise (BMP), the owning company of Hyatt Regency Belgrade has heavily invested in revamping and renovation projects at the hotel since purchasing the property in 1989, and much

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more lies ahead. Belgrade’s hotel market is based on a value-for-money perception; we therefore need to ensure that we place our products within reach of those consumers without compromising on the services offered.

Our renovation projects over the last five years included all the 39 suites, four guest room floors representing a fresh, open and welcoming feel, with smart furnishings allowing guests to go from working to playing to relaxing with ease.

The well-known and popular Crystal Ballroom and all event areas went through a major renovation, while our new reception and lobby brought a multifunctional concept to the heart of the hotel encouraging connections and lively conversation among our guests.

In the past two years our popular Olympus

Spa and Fitness Centre also had a face lift, representing modern swimming pool and brand new male and female spa facilities.

Stronger demand for meetings and small conventions, across the entire year has helped boost our revenues. In the final quarter of 2018 the hotel will commence transformation of our renowned Focaccia restaurant to a unique venue, giving our guests new place to meet or celebrate. Multipurpose furnishings allow for flexible usage, and variable workspaces will offer the perfect setting for creative meetings, formal presentations, workshops, art exhibitions and celebration gatherings.

Hotels have in recent years entered the ranks of the most dynamic businesses. How has this impacted on your business results?

The challenge and the plan for Hyatt is clear: to ensure that our guests are able to differentiate between Hyatt and their competitors, and to invest constantly in its business and be among the Top 10 Hyatt Regency hotels globally in overall customer service standards.

The current projects in the pipeline for 2019 and beyond – include design work in progress for adding 650m2 of new events space in the lower lobby area, allowing our guests the choice of a formal setting in Crystal ballroom or an alternative space for less formal events. Transformation of the Tea House outlet to a café-style Market offering food, drinks and regional items. It’s a onestop shop for everything guests need in an elegant and airy space in the heart of hotel.

Renovation of a further two guest floors will complete this stage of 2019 reconstruction, featuring the most spacious standard hotel rooms in the city measuring at 38 sq./m.

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Action

WORLD NEWS

“I have ordered the Atomic Energy Organisation of Iran to be ready for action if needed, so that if necessary we can resume our enrichment on an industrial level without any limitations.”

– HASSAN ROUHANI, IRAN’S PRESIDENT POLAND

CARGILL TO BUY KONSPOL

SWITZERLAND

MULTI-BILLION INVESTMENT PLANNED IN SWISS ROADS The Swiss government has earmarked more than CHF16 billion for projects to extend Switzerland’s national motorway network and to upgrade roads in urban areas.

The government proposes spending CHF14.8 billion for projects notably around the cities of Lucerne and Lausanne as well as in the Jura mountains and for the construction of a second road tunnel through the Alps, a project approved by voters in 2016.

An additional CHF1.34 billion have been set aside for cantonal road projects in more than 30 urban areas, including Geneva, Basel, Bern and in Valais.

Switzerland has a motorway network of about 1,800 km, including tunnels and bridges across the country.

TURKEY

TURKISH POST TO UNVEIL DRONE FOR CARGO SERVICES The Turkish Post and Telegraph Organization (PTT), which has ranked seventh in world cargo transportation with innovations in recent years, will further raise the bar with the drone cargo transportation services it will initiate soon. Following stunt flying at Teknofest, the PTT will perform its first test flights between Bostancı in Kadıköy district and the Prince’s Islands.

The drone developed by Turkish engineers with completely local and national means will be used predominantly at points where geographical conditions hinder transportation. Thus, the PTT will first carry out drone cargo transportation over water. Drones to be used by the PTT will be autonomously controlled from a center without a driver, with a control stick. The address to where they will deliver cargo will be defined on drones. After the package reaches the designated spot of the defined task, drones will be able to return to the region where they take off, again without a driver.

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Global food and agriculture giant Cargill will buy Polish poultry producer and processor Konspol.

Under the agreement, which is subject to regulatory approvals, Cargill will purchase the Polish assets of Konspol’s food and fresh chicken business. Cargill will also acquire Konspol’s portfolio of products, including branded and private label offerings, as well as its customer and supplier relationships. Upon completion of the acquisition, Cargill plans to continue to grow and develop the business.

Konspol hires over 1,700 employees.

NETHERLAND

DUTCH BANK PAYS HUGE FINE IN MONEY LAUNDERING CASE Dutch bank ING has paid €775 million to settle a huge money laundering case in the Netherlands.

The country’s financial prosecution service said in a statement that ING for years failed to adequately implement a law aimed at preventing money laundering and the financing of terrorism by not carrying out adequate background checks on clients and not sufficiently investigating suspicious transactions.

The prosecution service said that the bank “didn’t prevent accounts of ING clients in the Netherlands being used to launder hundreds of millions of euros (dollars) between 2010 and 2016.”

The settlement included a €675 million fine and a disgorgement payment of €100 million to the Dutch government that represented the amount ING did not spend on staff and procedures to implement anti-money laundering rules.

SLOVAKIA

JAGUAR LAND ROVER NEW PLANT The British carmaker Jaguar Land Rover will begin making cars in Nitra,Slovakia Jaguar Land Rover started building the factory almost exactly two years ago and today they are looking at a factory that is nearly finished, with the aim to start shipping cars to the customers at the end of the this year.

At present, Jaguar employs more than 1,300 people in Nitra, of whom 97 percent are Slovaks, and three quarters of them come from this region. Jaguar will make 150,000 cars per year in Nitra.

The plant should have about 2,800 employees by 2020.

LJUBIŠA VELJKOVIĆ, CEO OF MILENIJUM OSIGURANJE (INSURANCE)

LEONI

BECOME LARGEST INDUSTRIAL EMPLOYER IN SERBIA Leoni will create jobs and employ more than 10,000 people in Serbia once the new plant in Kraljevo is fully operational.

Leoni, a global provider of energy and data management solutions in the automotive sector and other industries, will open its fourth plant in Serbia in the city of Kraljevo, becoming the country’s largest industrial employer.

In early 2020, Serbia will be the only European country in the WSD network with four production facilities, which will almost double the number of their staff in the country.

Since setting up its business in Serbia in 2009, Leoni has invested approximately EUR 90 million. It is currently employing approximately 6,000 people and looking to increase the number to more than 10,000.

“We need a stable and predictable political and economic environment to continue to ensure the growth of our business here in Serbia”, said Martin Stüttem, Member of the Board of Directors of the Leoni Group and Head of Leoni WSD. GENERALI

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The Evolution of Insurance This year brings us the more intensive digitalisation of processes for most participants

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sers can see external recognisability in the increasingly present online sales of most insurance companies, says Ljubiša Veljkovic, Chairman of the Executive Board of Milenijum Osiguranje, speaking to CorD.

Your results show that the Serbia market is slowly starting to understand the necessity for insurance. How do you see this trend?

If we were to look at major infrastructure projects, as well as insurance models, life insurance programmes, ever more present health insurance and variations in coverage, we would see that they are not lagging behind developed markets. Over the past two decades, the market has been in a transition process from an almost completely dominant corporate insurance segment towards retail and SME customers. Today experiences of this segment are also different, but there is certainly a lot more room at this level and that’s precisely where growth generators are seen in the coming years. An equilibrium of balance between these types of clients also ensures the industry’s adequate profitability.

What kind of innovations can we expect on the Serbian market?

This year brings us more intensive digitalisation. Users can see external recognisability in the increasingly present online sales of most insurance companies.

Our five-year development policy is reflected not only in product development, but rather primarily in the development of processes, personnel and sales infrastructure in the form of new branches and representative offices throughout the country, all with the aim of providing greater customer satisfaction.

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MILE TODOROVIĆ, CEO OF ATB SEVER D.O.O., SUBOTICA

Electric Motors And Generators For The Whole World In the year marking the 95th anniversary of its operations, Subotica-based ATB SEVER is opening a new chapter in its business

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uring its rich history, company Sever has experienced numerous changes in ownership, organisation, programming, production and technology. Privatised in 2005, under the name ATB SEVER, it then became a member of the ATB Austria business system.

“Since 2008, ATB FOD d.o.o, a factory for the production of machinery equipment for mining and energy, has been operating under the ownership of ATB SEBER in the eastern Serbian city of Bor. “In 2011, ATB became part of large Chinese group WOLONGA, marking the start of a new phase in the development of factories in Serbia,” says CEO Mile Todorović in this interview for CorD. What changed at ATB SEVER and improved with the arrival of the new owner?

The arrival of China’s WOLONG group was a turning point and a springboard for our rapid growth. ATB SEVER and our Bor-based company ATB FOD ended last year with a 22 per cent higher turnover than in 2016, or with 24.7 million euros of total turnover, which is incredible growth.

Alongside the production of all types of electric motors and generators, what else is included in your production programme?

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We offer the very latest in complex technical solutions for electric motors and drives for various applications and energy sources. We’re also recognised as a supplier of complete electrical equipment and services for electrical engineering in mining, energy, black and non-ferrous metallurgy, industry and water management.

We manufacture and deliver electric motors that meet the most complex technical requirements of electric motor drives in nuclear and thermal power plants, surface mines of coal and copper, underground mines, refineries and rigs for oil and gas exploitation. We have production technologies that enable the operation of our products in the harshest and most extreme climatic regions.

We have production technologies that enable the operation of our products in the harshest and most extreme climatic regions

Which products would you identify as being the most important?

These are both low and high voltage electric motors, synchronous and asynchronous generators of low and high voltage, engineering works in the energy sector, surface mines, as well as regulated electric motor drives. We also receive requests for complete technical solutions. One example of that is the complete equipping of small hydro-electric power plants.

In the area of renewable energy sources, our company specialises in the modernisation of existing energy facilities, but also the construction of new ones. In the equipping of small

hydro-power plants up to 10 megawatts, we have begun producing both synchronous and asynchronous generators.

ATB SEVER isn’t only growing in terms of production operations, but also in terms of personnel.

What are your plans?

We started this year with 437 employees, while now we already have 465 at ATB SEVER and 227 employees at ATB FOD. The plan is to increase the number of employees. The specificity of our company is certainly our Engineering development department, within which we formed a special team of ten engineers last year who are exclusively engaged in development work, designing and constructing engines for WOLONG companies from Europe, but also increasing for the WOLONG group as a whole. It is clear that, alongside our production workforce, we also constantly employ a highly educated staff of electrical and mechanical engineers.

With the end of 2018 approaching, are you satisfied with the results achieved and what are your further plans?

This year will also be a year of growth for ATB SEVER. According to a decision of the WOLONG Group, three centres will be opened in Serbia for the production of parts for factories in Germany and the UK: the Centre for punching and packaging sheet metal packages; the Centre for the production of coils for both low and high voltage engines and the Centre for welded constructions and processing that we will form within ATB FOD. I’m generally satisfied with achievements during this year, as constant progress has been noticeable, but we expect a lot of work in the next year, because the owners’ expectations are high, both when it comes to the implementation of planned investments and increasing production capacities.

Innovative List

The Most Innovative Companies 2018 Most innovation rankings are popularity contests based on past performance or editorial whims. Forbes set out to create something very different with the World’s Most Innovative Companies list, using the wisdom of the crowd. Their method relies on investors’ ability to identify firms they expect to be innovative now and in the future

C

ompanies are ranked by their innovation premium: the difference between their market capitalization and the net present value of cash flows from existing businesses (based on

a proprietary algorithm from Credit Suisse HOLT). The difference between them is the bonus given by equity investors on the educated hunch that the company will continue to come up with profitable new growth.

To be included, firms need six years of public financial data and be among the world’s 500 largest publicly traded companies by market capitalization. Here are the first 10, out of 100 most innovative companies, according to Forbes list

COMPANY

INDUSTRY

VALUE/ Billion

ServiceNow

Software & Programmin

$31.6

US

Workday

Software & Programming

$29.3

US

Salesforce.com

Software & Programming

$97.0

US

Auto & Truck Manufacturers

$51.1

US

Amazon.com

Internet & Catalog Retail

$777.8

US

Netflix

Internet & Catalog Retail

$141.9

US

Incyte

Pharmaceuticals, Biotechnology & Life Sciences

$14.2

US

Household & Personal Products

$50.1

India

Naver

Computer Services

$22.1

South Korea

Facebook

Computer Services

$541.5

Tesla

Hindustan Unilever

COUNTRY

US

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Enterpreneur NICOLAS BERGGRUEN

Homeless

Billionaire

Nicolas Berggruen (54) was born in Paris, went to boarding school in Switzerland, attended university in New York, and began his investing career in London. What followed was a legendary career in finance and a life spent primarily in hotel suites and aeroplanes around the world 48

October

Nicolas started out with a trust fund of $250,000 and is now worth over $2.3 billion.

He’s spent his life turning around companies in Europe, and has also put time and funds into improving things here state-side (he’s invested in public work efforts in Oregon and California).

Nowadays, the German and American dualcitizen travels the world in his private jet, lives out of hotels and has been dubbed the “homeless billionaire” by the press.

So, why would a billionaire choose to live in an apartment in a mid-century, high-rise tower block? The answer could be find as soon as you step through the front door of Nicolas Berggruen’s home on one of the upper floors of Sierra Towers, and take a moment to contemplate life, the universe and everything.

Floor-to-ceiling windows running the width of the palatial apartment create a view that serves up the whole of Los Angeles on one big, breathtaking platter — from the hills to the east and the green oasis that is Beverly Hills below to the clustered skyscrapers of Century and Culver Cities, and the sweep of Santa Monica bay with the shimmering Pacific Ocean beyond.

“The Peninsula was great,” Berggruen says of the five-star hotel that served as his former LA residence. “But it didn’t have a view.”

That Berggruen, who has made a fortune — almost $2bn, according to Forbes — investing mainly in real estate, should be interested in anything associated with settling down may come as a surprise: for years, he was known as the homeless billionaire, jetting around the globe in his Gulfstream while living and working out of the world’s finest hotels.

The son of Heinz Berggruen, the German art collector, and Bettina Moissi, a German actress, Berggruen grew up in Paris in a predominantly German-speaking household. He studied finance and international business at New York University.

His father then lent him $250,000 to kick-start his investing career, and made it clear he expected to be repaid.

In the past, Berggruen, who was known for his A-list parties at Davos and his annual Oscars bashes at LA’s Château Marmont Hotel, was often photographed in glitzy settings with even glitzier women hanging on his shoulder.

But the 56-year-old bachelor, who holds German and American citizenship, says that he

Mr Berggruen is an investor and art collector who was once known as the “homeless billionaire” because he lived in itinerant luxury in five-star hotels has finally decided to put down roots because he has entered a new chapter of his life. “It’s a rediscovery of the curiosity that I have always had for the world of ideas,” he says. “I took a long detour in business but I have come back to it.”

Two forces have been at work. The first is having children following the 2016 births (from the same egg donor and two surrogates) of Olympia and Alexander, biological sister and brother, who are barely three weeks apart.

“I felt the same hormonal need that I think a lot of women must experience,” he says of having children. “It was an urge to create life beyond one’s own but that is still connected.” He lives with his children and sees them every day, even taking them and their nanny on his numerous international business trips.

The second force is his Berggruen Institute, a think-tank he founded in 2010 with the mission to develop “new ideas to shape political, economic and social institutions in an era of Great Transformations”.

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Enterpreneur “We are totally independent, we can think very long term, and we can focus on key ideas that will improve humanity,” he says of the institute.

“We may never get there but we are willing to take the risk.”

The institute is young but its reputation is growing. Among its many activities, it puts up a $1m purse — similar to that of a Nobel Prize

— every year to somebody whose work in the area of philosophy and culture have “profoundly shaped human self-understanding”. Last month, the prize went to British-born philosopher Onora O’Neill. The Institute described her work as “a critical development of the Kantian tradition in ethics, in which she combines profound historical scholarship with a deep analysis of the central questions of moral life”.

In 2015, Berggruen’s institute, for which he has set aside $500m in funding, bought 447 acres of land in the Santa Monica mountains for a Scholars’ Campus. This “secular monastery”, as he describes it, is a startling Herzog & de Meuron-designed centre in which up to 50 visiting thinkers from around the world will be able to find the time and space to deepen their ideas.

With such lofty goals, why settle in LA, a city that is so often tagged as superficial, void of history or even a true centre? “New York is a very exciting, most dynamic city but it owns you,” he says. “Being in LA is about open space,

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not just physical but also mental. It’s more a state of mind than a city.” Besides, he says, “the American west coast is a place that has always been about the future. It is open to new ideas and is non-judgmental”.

Berggruen has occasionally been described as a Mick Jagger lookalike. On this particularly hot afternoon, he wears fitted black cotton trousers,

Today Berggruen is in talks to start Africa’s first regional commodities exchange with the East African Community—an organization of countries from Kenya to Burundi a slim black T-shirt and aviator-style Ray-Bans.

“I wear these because I suffer from migraines,” he explains, pointing at the black lenses.

Every year, the night before the Oscars, Berggruen throws a party in Los Angeles. Celebrities like Leonardo DiCaprio and Paris Hilton have been known to attend.

Looking around his home — he also owns a $40m mansion in LA’s Holmby Hills but has no plans to live there — gives glimpses into a

man with a hawk eye for detail and design, and a heightened passion for art.

The south-facing apartment is one long, open space with a huge living room at its centre.

Open-ended book shelves house hundreds of tomes. Several rows are taken up by books about China — a present, he says, from his friend David Tang, the bon vivant, luxury goods entrepreneur and Financial Times columnist, who died this year.

However, Berggruen stays at a hotel in California for several months of the year, and has recently been politically active in helping the near-bankrupt state. He’s promised to donate $20 million to back proposals that he Think Long Committee for California proposes for the state.

The committee is made up of high powered names such as Google CEO Eric Schmidt and former Secretary of State Condoleezza Rice.

The interest in art is perhaps unsurprising given his family background: his German-Jewish father was not only an important art collector but also a personal friend of Picasso when he eventually settled in Paris after fleeing Nazi Germany for the US. Olivier, Berggruen’s brother, is an influential New York-based art historian and curator.

On the eastern wing of the apartment, Berggruen has arranged a collection of 20th-century furniture, including a sofa and two armchairs upholstered in white, and a square wooden table and chairs designed by Pierre Jeanneret, cousin and collaborator of Le Corbusier. On top of the table sits the exquisite chess set that surrealist artist Man Ray designed between 1920 and 1924.

Berggruen owns other apartments in the Sierra Towers, and uses this floor for working, thinking, relaxing and occasionally inviting friends and guests. He prefers staff to prepare his meals elsewhere, as he does not like the smell of cooking. That may explain why the small galley-style kitchen, with its minimalist wooden cabinets and pristine work surfaces, looks more like a period art installation than a place for making dinner.

The modular arrangement is working well for this new chapter of his life, it seems. “I realised that living in a high-rise meant that I could add apartments,” he says. “I have created a house — a vertical home — within a building.”

Today Berggruen is in talks to start Africa’s first regional commodities exchange with the East African Community—an organization of countries from Kenya to Burundi.

Source: FT