Business Dialogue - CorD No. 152

JUNE BUSINESS LEADERS’ MEETING POINT

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VLADIMIR VAVA CEO at Carlsberg Srbija Group

VLADIMIR MILOVANOVIĆ Energoprojekt

The Market Believes In Our Brands

The Local Market Always Has Priority

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OLGA ĐURIĆ-PERIĆ Director, Asmec consultants Ltd., Belgrade

MARKO KRIZMANIĆ Owner Projekt Ekspert Adria d.o.o.

Convey World Experience In Serbia

Networking Is Key

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CORPORATE

VLADIMIR VAVA, CEO AT CARLSBERG SRBIJA GROUP

The Market Believes In Our Brands Upon his arrival at Carlsberg Srbija Group, Vladimir Vava set the goal for himself and his team of recovering and further developing Carlsberg’s operations in the region, by rebuilding the trust of customers, consumers & shoppers in the company’s well-known brands 12 per cent and in the past two years.

As I am still in my proverbial first 100 days period, so it would be unwise to describe with certitude the peculiarities and characteristics of these three markets. However, I would say that each of these markets is driven by its own local power brands that are different, and especially in Montenegro, where the premium segment is growing faster

disturbances than other categories, maintaining quite a stable percentage of the share.

■ How much do these markets differ from the European markets that you were previously responsible for, and ladimir Vava, Carlsberg Srbija are there commonalities in the habits and tastes of consumers?

Group’s newly appointed - I would only talk about the Russian CEO, is responsible for the beer market, which is a semi-dark three markets of Serbia, one (in the sense that no adverBosnia-Herzegovina and Montenegro. We spoke with him about The markets of Serbia, Bosnia- tising (ATL) is allowed except BTL the characteristics of the domestic solely), where during the last two Herzegovina and Montenegro years the total beer market remarkets and the goals he has set have their own dynamics, but tracted by 11.8%, while the market as its new CEO. in terms of volume they are all of spirits (especially grey vodka) took a significant piece of the ■ What are the key characterisstable, resilient and maintain tics of the markets that you are ‘pie’. In Russia, the Modern Trade quite a stable percentage of responsible for, and how do they channel is growing fast (in just the share of sales mutually differ? a year it grew from 43 to 53%), - When it comes to the size of the with relatively high consolidation (about 10 KA are accountable for than in Bosnia and Serbia (based on markets I’m responsible for (Serbia, more than 60% of total MT), though Nielsen data). Low mainstream and Bosnia-Herzegovina and Montenegro) still a long way from Western Europe. premium is developing, pushing the and trends in recent years, there are Moreover, two new rising trends, one mainstream from up and down. In some differences. From 2008 until named DIOT (Draft In On Trade) and packaging terms, both Bosnia-Herze2014, the Serbian market recorded a govina and Montenegro are focused the other Craft (not crafty), appeared significant drop of 15 per cent, while on NRGB, and especially on CAN, in Russia. The first is gaining a strong in the last two years, there has been while in Serbia the name of the game impetus based on the big PET (>1.5 lia slight but noticeable recovery and tres) ban and consists of draft instalis still RGB and PET, which are still we hope that this trend will continue. lations in off-premises trade, where ‘treading water’, despite plunging.

Unlike Serbia, the Bosnian market experienced constant decline of five per consumers & shoppers purchase beer In all three of these countries we observe volume stabilisation and that cent from 2013 to 2016. On the other to go (in PET bottles) from specially the beer category is showing more hand, Montenegro has by far the best tailored draft installations named resilience against external economic trend, with the market having grown PeGas (foam annihilators), which

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are not for Instant consumption but for socialising at home with friends and family. The other trend is small craft breweries that are producing very local (city or even village level) specialities in small quantities that are relevant mainly for people living around the area.

Again, the main difference is the fast transition of consumers from traditional off-premises trade (mom & pop shops) to organised chains of modern trade.

■ What goals have you set for yourself as the new CEO? - Since my arrival at Carlsberg Serbia Group in February this year, I set the goal for my team and myself to recover and further develop the company’s operations by rebuilding the trust of our customers, consumers and shoppers in our brands, rooted in our unique brewing traditions that were established by the visionary Lazar Dunđerski 125 years ago in Čib (nowadays Čelarevo).

We have all prerequisites for this – well-known brands, quality products and a motivated team, so it’s up to us to ensure the longterm development and prosperity of our brewery.

■ How challenging is it to do business on markets with low public purchasing power, and how do you approach such challenges?

- As I described previously, Russia is not too different with regard to disposable income, and it is very important to have a balanced portfolio covering all segments and not to put ‘all the golden eggs in one basket’.

One must look for opportunity niches and gaps that exist in the market, and utilise them swiftly. A good example is our cider, Somersby. We are very confident in this brand and will continue focusing on that category, which is out of the core beer category, but is highly appreciated by Serbian consumers.

■ What novelties will Carlsberg offer on the Serbian market?

- Carlsberg Srbija currently has 13 brands in its portfolio (without extension), including lager beer, radler, cider, wheat beer, dark beer, light “sunshine” beer and even craft beer, which I believe is quite a vast selection.

It is not possible to disclose the innovations we are planning at present, but I am certainly confident that our existing portfolio covers a broad scope

We will continue to focus primarily on our great brands that we are bringing into the lives of the people of Serbia, Bosnia-Herzegovina and Montenegro, conveying each day a bit of fun and bringing joy into their daily routines of consumer tastes and occasions. We will continue to focus primarily on our great brands that we are bringing into the lives of people in Serbia, BosniaHerzegovina and Montenegro, conveying each day a bit of fun and adding joy to their daily routines.

■ To what extent do multinational companies represent a good career springboard for highly educated personnel from smaller countries?

- I would like to share my own experience, as I started my career in a small

city in Romania, in Timisoara, as a Store Manager in an international retail chain, and through the last 20 years I’ve gone through more than seven countries around the world and two different industries, learning continuously from the people and cultures to which I was exposed. Multinational companies represent a remarkable opportunity for developing new generations (of youngsters) for a globalist type of business life, while the most important ingredients necessary for success are humbleness regarding different cultures, courage for trying something new and willingness to move from country to country, or the openness for mobility… and the experience is indeed priceless.

■ Under the auspices of your CSR activities, you support students of the Novi Sad faculties of law, economics and technology.

Are there also places at Carlsberg for some of these young people?

- Since its establishment in 1847, social responsibility has been an integral part of the Carlsberg Company, and we at Carlsberg Srbija are fortunate that CSR also has its roots in Čelarevo Brewery, for 125 years.

When you have such a rich heritage that already defines you, your duty is to cherish it, but also to invest in future generations to come. One of the main activity areas of the Carlsberg Foundation in Copenhagen, but also the Dunđerski Carlsberg Foundation in Serbia, is investing in science and education. That is why we signed a three-year cooperation agreement with three faculties of the University of Novi Sad, and it is my pleasure to say that this cooperation brought us 35 scholars.

Many of these students, as well as students from other faculties, gain internships at our company, after or even during their studies, and I must say that not a small percentage of them remain in the company. ■ JUNE

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CORPORATE ENERGOPROJEKT

The Local Market Always Has Priority Energoprojekt is the leader in engineering and construction in Serbia and Southeast Europe, whilst simultaneously being a highly ranked company in global terms

will stagnate or work less abroad. On the contrary, more contracts at home have a direct consequence of generating growth of business on foreign markets increasing employment and generating higher revenue and profit. Energoprojekt was founded in 1951 to construct the country’s VLADIMIR MILOVANOVIĆ energy sector infrastructure and we owe development of business abroad to works ■ Considering the fact that more than nergoprojekt is for decades listed undertaken in the country. half (52%) of your revenue is generon all world lists of the best engiIn Serbia, after decades of stagnation, neering contracting and consulated on foreign markets, do you plan new large infrastructure projects are befor domestic work to assume primacy in tancy companies. Whilst in late generating revenue in the period ahead?

80’s Energoprojekt was listed by American ing launched and Energoprojekt is ready - The local market always has priority over “Engineering News Record” among top 10 and works intensively on utilising its foreign ones, but it doesn’t mean that if rankings, during last five years it’s ranking extensive experience and knowhow on we have more contracts at home that we is each year better and better so in 2015 it those projects. More work in the country was ranked as 193rd on the list of the results in increased employment for In Serbia, after decades various staff members who, after top 250 international contracting comacquiring the necessary practical panies, and as 123rd place on the list of of stagnation, new large knowledge and experience on projthe 225 top international design-coninfrastructure projects are sulting companies. With 65 years of ects in the country, in cooperation being launched and experience, and with works carried out with their older colleagues, go on Energoprojekt is ready and in more than 70 countries worldwide, to enable the growth of operational Energoprojekt holds a leading position working intensively on utilising activities abroad, with greater intenin Serbia for many decades, but also sity, and on new markets. its extensive experience and throughout Southeast Europe as a Based on our successes of gaining knowhow on those projects whole. Name of Energoprojekt stands contracts for new and major projects eager to provide more jobs for quality and reliability in many dein the country, there are multiple direct and indirect benefits. This veloping countries in Africa, Euro-Asia for yang experts and gradumeans benefits for Energoand Middle East where Energoprojekt ally increase volume of foreign primarily used to work earlier or is currently projekt shareholders, employees, the operations operating. companies with which we work and

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which will than grow faster, for faster GDP growth and the recovery of the entire construction sector in Serbia. Today Energoprojekt contributes directly to the national budget, only on the basis of different taxes on salaries and tax on profit, in excess of 25 million euros.

- The job I do is demanding and responsible. It demands teamwork, careful decision-making, which takes into consideration all the risks that accompany them and is based on a range of facts and statistics that are essential for such decisions to be made. In order to be successful in the job that I do, you can’t rely on “luck” as a basis for good results, but rather only on dedicated and professional work. Adrenaline rushes are often

agreeing of new contracts, by the need to make some tough decisions that can cause you to gain enemies and various other events.

However, the biggest adrenaline rush I have experienced since 2010 was at the beginning of this year, when we identified transactions on the Belgrade Stock Exchange with large blocks of shares be■ If you were to place on scales the pros and cons of doing business in Sertween known traders, perennial sharebia, which way would they tip? holders and unknown buyers hidden be- There are no more easy hind a “custody” account. and comfortable markets We soon realised that this anywhere. Similar to Serbia was part of a larger plan we are also on all other that was aimed at making markets, including EU, a so-called “hostile takefacing a lot of of chalover”. For those of us who have worked and created lenges, including unfair at Energoprojekt throughcompetition, the grey zone business operations, a lack out our entire lives, a of respect for laws and “hostile shareholder” is regulations, Like everya shareholder who tries to conceal their existence where, here in Serbia it and activities on the stock is necessary to to create market, probably because preconditions for tenders they are buying shares for complex projects with using money of dubious major investment values origin or have intento include competition between companies with tions upon taking control similar business capacities of shares that are of a VLADIMIR MILOVANOVIĆ and Ghanaian President JOHN DRAMANI MAHAMA, in all relevant elements. destructive rather than pictured at the official opening of the cargo centre at Kotoka International Airport in Accra Improving the conditions developing character. of tenders would create benefits for We paid a great price by going We paid a great price by everyone. The state would generate public on the Belgrade stock exmore revenue for the budget, inveschange, and it seems that we are still going public on the Belgrade paying.

Capital markets and securitors would have fewer headaches stock market, and it seems when implementing planned investties in Serbia develop unacceptably that we are still paying. slowly, and regulatory bodies and ments, and companies that impleCapital markets and the judicial system are not staffed ment projects with reasonable profits to take the desperately needed step would have a basis for growth and securities in Serbia develop forward with the aim of preventing development. Market survival is diunacceptably slowly, and (un)permitted abuses on the market. rectly proportional to investments in regulatory bodies and the We saw during the past decade many people, new technologies and knowjudicial system are not staffed companies being victims of hostile how, their introduction into everyday use and the planning of operations to take the desperately needed takeover with the cheapest investand development. ment capital whereas new owners step forward with the aim were then focused how to get the of preventing (un)permitted rid of any other shareholders and ■ You have been Energoprojekt chief abuses on the market and employees, become sole seller of executive officer since 2010, while fix assets and etc. We fight against you are an engineer by profession. In questionable capital inflow such scenario using all legal means one interview you said that you need through different Serbian institutions time, after leaving the office, to lower caused by the unforeseen decisions of and court, and I hope that we will win at your “operating adrenaline”. During all our various investors, sometimes by this important moment for the future of these years, which Energoprojekt job fierce debates among those of us at EnEnergoprojekt. ■ “raised your adrenaline” the most? ergoprojekt, the winning of tenders and JUNE

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LOCAL NEWS

INFRASTRUCTURE “The European Investment Bank (EIB) will invest around €375 million in Serbia, primarily in infrastructure.”— DUBRAVKA NEGRE, EIB Director for the Western Balkans

SRBIJAGAS

MAGNA SEATING D.O.O

Debt Below €400 Million

Magna Opens New Capacity in Serbia

Director of Serbian state-owned gas company Srbijagas Dušan Bajatović said that it managed to reduce its debt to below €400 million from some €1.7 billion in 2012.

According to Bajatović, Srbijagas managed to repay the most expensive part of its debt, which had an interest rate of 6.5%, ahead of schedule, thus generating cost savings of about €10 million. The company is currently replaying debt with an interest rate of 2.2% and has no outstanding liabilities towards Russian gas company Gazprom for imported natural gas.

FIAT

Fiat Serbia To Start Manufacturing "New Model"

DUŠAN BAJATOVIĆ

Last December, the IMF said that Serbia has moved to restructure some €600 million of Srbijagas’ debt in order to meet the conditions for unlocking €850.8 million funding under stand-by arrangement.

In 2016, Srbijagas recorded a net profit of some €17.8 million, which is 27% less compared to the previous year.

Source: News Serbia Energy

Starting from this year, this car will be manufactured in FCA’s plant in Kragujevac, central Serbia, the company announced.

“After five years, we celebrate the success of the model Fiat 500L by announcing a new investment that will be a milestone in the development and guarantee of FCA Serbia’s future success,” the company said.

Representatives of FCA’s Autonomous Trade Union in Kragujevac told Beta that this concerns the launch of manufacturing of a restyled classic Fiat 500L model. Two more variants are being produced in Kragujevac - dubbed “Living” and “Trekking”.

The Canadian – Czech company, Magna Seating officially opens a new facility for production of car seat covers in Odžaci. Four years ago, Magna Seating opened its first production facility here and hired around 300 workers. Today, the company is continuing with its development, expanding its existing production facility in Odžaci, and hiring around 1,000 new workers.

The state of Serbia will support this project with €2.25 million on the basis of a relevant contract which was signed, with the government’s consent, between the Ministry of Economy and this company. The same contract stipulates that Magna Seating will expand the existing production facility in Odžaci, and that this investment would amount to €6 million.

10 ETIQUETTE RULES FOR BUSINESS MEETINGS

NELT

Nelt, Cosco Establishe Cooperation Arrival of a cargo train from the port of Piraeus in Greece to intermodal railway terminal of Nelt in Dobanovci marked the official beginning of the cooperation between the Chinese shipping and logistics company COSCO and Nelt. COSCO, being one of the global leaders in the area of logistics, recognised Nelt’s intermodal terminal in Belgrade as a logistics hub in the Balkans, thanks to its excellent location, and technical and technological advantages.

“We are expecting a transport of more than 7.000 containers annually. Decrease in transit time with regard to Northern Adriatic ports represents a benefit for the clients but also relying on the Nelt intermodal terminal which we will connect with the port of Piraeus because it provides wide logistics support necessary for establishment of this flow”, said Erich Cossutta on behalf of the company Dragon Maritime, the COSCO company agent for the Serbian and the Western Balkans area.

“We hope that this service will provide our market with an important alternative in the logistics flows“,

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To get a better idea of how to maintain a positive, professional image while in a business meeting, here are 10 rules you should know:

says Ivan Milićević, NELT LSP operations and development manager.

Within the Nelt logistics centre there is a functioning customs office with a warehouse, which ensures full support and flexibility for various processes and flows of goods. With the new set of logistics services which were initiated by activating the intermodal terminal, the clients obtained reduction in logistics expenses as well as a faster, safer and better quality transport service.

1. Be on time 2. Make introductions 3. Have a strong agenda 4. Sit appropriately 5. Speak up 6. Understand the unwritten speaking rules 7. Do not have your phone out 8. You can drink coffee, but you need permission for anything else 9. Clean up after yourself 10. Don't save all your questions for the end

SOLIDARITY “We are coming together at a more-than-ever turbulent time for the region, for Europe and for the world and that is why we need “more solidarity, cooperation and collaboration in the whole region.” — ELENA KIRTCHEVA, Member of the Board and Secretary-General of Vienna Economic Forum

Placements & postings

TELENOR

The State-Of-The-Art

appointments@aim.rs

Company Telenor has rolled-out the state-of-the-art 4G+ network in seven towns of Serbia. Up to two and a half times faster internet, even better quality signal and instant loading are the advantages of the new technology available to citizens of Serbia in Belgrade, Novi Sad, Niš, Kragujevac, Subotica, Zrenjanin and Pančevo.

“Over one half of mobile internet in Serbia goes through Telenor network, while on the annual level, the growth in internet use has doubled. That is why we have additionally invested in the latest 4G+ technology, which is now available to users in the largest towns

▪ SEM FABRIZI, NEW HEAD OF THE EU DELEGATION TO SERBIA Sem Fabrizi comes to Serbia after vacating the position of Ambassador of the European Union to Australia, which he held from September 2013. An Italian career diplomat, he has served as an advisor on international relations to the President of the European Council in Brussels and to the Prime Minister’s Office in Rome, having also served in Geneva at the Italian Permanent Mission to the WTO and in Beijing at the Italian Embassy in the PRC. At the MFA in Rome he has held positions in the EU Department and the Secretariat General’s Office. Ambassador Fabrizi holds degrees in International Law and International Economy from La Sapienza University in Rome and also served as a Lieutenant in the Italian Army, where he was awarded the honour of Cavaliere Ufficiale dell’Ordine al Merito della Repubblica Italiana.

Ambassador Fabrizi is a married father of three children.

▪ ALEKSANDAR RUŽEVIĆ, NEW CHAIRMAN OF THE NALED MANAGEMENT BOARD

INGEBORG ØFSTHUS

of Serbia. The digitalisation of Serbia is our priority and we are building a network for the future, which will continue to support even the most advanced requests of our customers”, said Ingeborg Øfsthus, CEO of Telenor Serbia.

In order to tap all the benefits of 4G+ networks, you need to have 4G SIM card and a handset that supports this technology, and also be in the 4G+ signal coverage zone.

For more information, please visit www.telenor.rs.

BRITISH INTERNATIONAL SCHOOL (BIS)

Celebrating 20 Years The British International School (BIS) is celebrating its 20th anniversary this school year. BIS prides itself on the quality of teaching that takes place in the school. Following the British curriculum, students from 4 to 18 years old can learn to the best of their ability. Whether they are learning their first few words, or taking A Levels to get into university our highly-qualified teachers focus on the needs of each student.

With formal, externally marked examinations at the end of Primary (Year 6), in Year 9, and the IGCSEs and A Levels our results demonstrate that our students are capable of achieving high scores as the best in the UK. We are proud to say that all students leaving BIS enter universities of their choice. However, at BIS, we also focus on other areas of student’s development. From taking them to museums when they are five through to taking them mountaineering when they are 18, there are many opportunities for students to take part in other non-curriculum events, both during and after school. With regular visitors from embas-

Aleksandar Ružević, General Manager of Coca-Cola HBC Serbia and Montenegro, has been appointed by the newly constituted NALED Management Board as its chairman for the next four-year period.

Ružević is a graduate of the University of Belgrade’s Faculty of Law and has been part of the Coca-Cola team since 1998. He has built his career by leading professional teams on different markets, from Macedonia to Ukraine, and has always achieved significant results and expanded limits in terms of both the volume of operations and the company’s corporate social responsibility initiatives.

He was appointed General Manager of Coca-Cola HBC Serbia and Montenegro in August 2015 and has been a Member of the NALED Management Board since 2016, prior to which he held the position of chairman of the NALED Fair Competition Alliance, the establishment of which was initiated by Coca-Cola HBC. Also selected as the new vice presidents of the NALED Management Board are Gomex CEO Goran Kovačević, as the representative of the economy, Pirot Mayor Vladan Vasić, as the representative of local government, and Dragana Čukić, member of the ACES Board of Directors, as the representative of civil society organisations.

▪ ZORAN BABIĆ, NEW DIRECTOR OF “CORRIDORS OF SERBIA” Zoran Babić completed his primary and secondary education, specialising in mathematics, in Vrnjačka Banja, then in 1996 graduated from the University of Belgrade’s Faculty of Mechanical Engineering. He also enrolled in master’s studies in Business Economics and Finance at the University Business Academy in Novi Sad. Babić held the post of marketing director at PP ZM product Vrnjačka Banja’s Belgrade representative office, served as director of development for joint services at Prva Petoletska Trstenik, at public enterprise Beli Izvor in Vrnjačka Banja, where he held a number of functions – from head of sector to technical director. Since 2008 he has been an MP in the Serbian National Assembly. Until November 2013 Babić held the position of president of the Volleyball Federation of Serbia. In the last session of the Serbian National Assembly of he was head of the parliamentary group of the Serbian Progressive Party.

sies to our weekly assemblies students at BIS get a feel of the world beyond. Students themselves regularly take part in assemblies, thus developing their own self-esteem and abilities to perform within and to a group. There is also an optional week-long annual study tour that all students can take part in, and many other educational day trips.

Charity work, such as World Water Day and Football Shirt Friday and educational events, such as the World Education Games or Global Running Day enable students to enjoy and develop their teambuilding and competitiveness, ready for the challenges of life.

With a family-feel to the school, students are more than welcoming to new students. Come along and see why so many students, from all over the world enjoy the education on offer at BIS.

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CORPORATE OLGA ĐURIĆ-PERIĆ, DIRECTOR, ASMEC CONSULTANTS LTD., BELGRADE

Convey World Experience In Serbia

Our view on further contributions to new developments is largely dependent on the way the Government envisages the implementation of investments. With our experience, we could be seen as a designer in a traditional tender – the construction procedure, as well as in a design and build scenario,” says Olga Đurić-Perić, director at Asmec consultants

A

smec Consultants is a multidisciplinary engineering consulting company specialised in structural design, with mechanical, electrical, public health, telecommunications and fire prevention services.

■ Asmec consultants Ltd. is this year commemorating the 10th anniversary of its operations in Serbia. What represents Asmec Consultants’ core business?

- As our core business, we include supervision of all works, along with project management.

During these 1010 (binary) years, we gained significant experience in designing various types of developments, such as residential buildings, hotels, offices, sports facilities, factories, warehouses and bridges with spans of less than 50 metres, all from concept, preliminary, and detailed design, as well as site supervision and project management.

We can state with confidence that our business stretches geographically in Serbia, Europe and some parts of Africa and Asia.

■ Asmec insists on adherence to high international standards and efficiency in consulting and project management for large projects. How would you 34 |

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■ According to the Serbian Government, preparations are underway for the implementation of major construction investments. Where do you see room for your company to contribute to these projects?

- That’s right. The Government is announcing a significant number of major projects. We suspect they are in infrastructure, industry, renewable energy and mining, and some of them are already under implementation.

At present we are a member in a large international company for Technical Assistance to the Project Implementation Team of PE Roads of Serbia for Road Rehabilitation and Safety In order to achieve efficiency and high quality, we Projects, responsible for bridges.

This is a major project which covers implement the most recent approximately 1,000km of road. We trends in our field of expertise, are also contributing to the rehabilitation of bridges on regional roads, such as 3D for BIM modelling. We believe that 3D design assessing damage and designing remedial works, and we hope to conshould soon be a major trend, tinue these activities. or compulsory practise, in the We are confident that we can contribute to designing and supervising construction industry industrial developments, as we were nication and coordination skills and to involved in Fiat’s project in Serbia and find a common language with contracseveral large industrial projects abroad. tors to assist in construction using Furthermore, we believe that for their “forte”. developments like energy from waste, In order to achieve efficiency and Serbia does not have extensive experience in design and our collaboration high quality, we implement the most with international companies could be recent trends in our field of expertise, an asset here. I’d like to point out that such as 3D for BIM modelling. We believe we have long standing relationships that 3D design should soon be a major with a wide range of satisfied internatrend, or compulsory practise, in the tional clients. ■ construction industry. assess current market trends in the Serbian construction industry?

- Asmec is a family business, but its owners strive to deliver work that is on time, of high quality and coordinated with all parts of the design. These ethics have been passed onto our employees, who are young engineers educated in Serbia.

We believe that our contribution to the current Serbian market in the construction industry stems from a broader sense. We invest in our graduate engineers by encouraging them to be confident in design and supervision, to develop their engineering commu-

C DENTAL CENTER rests on three foundations that make good dentist practice – diagnostics centre, dental office and prosthethic laboratory. This is the only dental centre in Serbia in which your smile can be completely rehabilitated in the shortest time possible. In the modernly equipped premises, we offer highly professional, dedicated, individual dental treatments.

C DENTAL CENTER is comprised of five modern dental offices equipped with the latest intraoral Sirona scanners. Our team of widely specialized dentists will solve any dental problem you might have. We offer services such as dental prosthetics, conservative and endodontal therapy, periodontics, pediatric dentistry, orthodontics, oral and maxillofacial surgery and implantology.

Our clinic is certfied and recommended for dental implants by the world-renowned German company BREDENT. Our diagnostics centre is equipped with the cutting edge devices that enable us to make the most advanced 3D X-ray images. The SOREDEX CRANEX 3D image gives us the most reliable overview of the state of your teeth and the jaw, and is the only diagnostic tool that enables us to devise a precise dental plan. We guarantee successful therapy on the basis of such plan!

Welcome!

Cvijiceva 130, 11000 Belgrade Tel: +381 11 275 2849 • +381 63 802 6907 Email: info@cdentalcenter.rs www.cdentalcenter.rs JUNE

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REGIONAL NEWS

MINORITIES “There are 54 cultural minorities in the EU, representing 105 million people, all protected by legislation, together with their languages.”— FEDERICA MOGHERINI, High Representative of

the EU for Foreign Affairs and Security Policy and Vice-President of the European Commission

MONTENEGRO

ROMANIA

EBRD Finances Smart Metering Breakthrough

Dedeman Close To Taking Over AFI Park Offices

Montenegro is set to become a regional leader in smart meter deployment thanks to a project financed by the EBRD through a syndicated €32 million financing facility.

The country’s electricity distribution company Crnogorski elektrodistributivni system (CEDIS), plans to procure 60,000 devices for smart metering, which will mean that over 85 per cent of consumers will benefit from these modern devices.

The company will also modernise or replace its low-voltage infrastructure and install a modern energy management system (EMS).

This will strengthen the distribution network, cut losses and allow for the integration of renewable energy generators.

The investment will make Montenegro the first EBRD country of operations to meet the EU target of smart meter coverage for at least 80 per cent of the population by 2020.

Dragos Paval, the entrepreneur who controls the local DIY network Dedeman, could sign the agreement to take over the five AFI Park office buildings located near the AFI Palace Cotroceni shopping mall for almost €164 million.

AFI PARK OFFICE IN BUCHAREST CROATIA

Podravka Opens €71.3 mln Belupo Factory Croatian food, beverages and drug producer Podravka said it has opened a €71.3 million factory for its drug making unit Belupo in the northern city of Koprivnica.

The new production lines will boost Belupo’s capacity by 150% to 100 million packets of medicines annually. The new factory has two production units - for solid drug forms, and for semi-solid and liquid forms. Belupo own funds covered 45% of the costs for the construction of the new plant, and the remainder was financed with a loan from the Croatian Bank for Reconstruction and Development.

The construction of the pharmaceutical plant, which is among the largest greenfield investments in Croatia, took four years.

Apart from the 1,386 people Belupo currently employs, the new plant will create jobs for an additional 200 people.

This would be the largest transaction ever made on the Romanian office market.

The sale would generate a cash flow of €71 million for the Israeli developer AFI Europe Romania, which owns the office project.

10 THINGS

THAT DEFINE A TRUE PROFESSIONAL

Source: SeeNews

BOSNIA-HERZEGOVINA

Tesanj Achieved a Turnover Of €650 mln Small town of Tesanj is one of the leaders of development in BiH and beyond, and one of the most developed municipalities that achieves higher growth on an annual basis.

Companies that are doing business in Tesanj are realizing the significant profit that largely enables growth of BH economy.

According to the business indicators, businessmen from Tesanj realized a turnover in the amount of 1.3 billion BAM (€650 mln) in the year of 2016.

Association of businessmen “Business Center Jelah Tesanj” is a true representative of the entire Tesanj economy that is currently one of the most developed economies in BiH. “The association has a total of 2,288 active business subjects and more than 11,000 employees. Goods produced in Tesanj are exported to 61 countries and an average of €45 million of new investments are realized on the annual basis,” said Edin Jabandzic, president of the Association.

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You may be a brilliant developer, a highly skilled administrator, but if you're unprofessional, your career is likely to fall short. As you read through the items below, consider how you compare with each trait.

TESANJ

1. Put customer satisfaction first 2. Make expertise your specialty 3. Do more than expected 4. Do what you say and say what you can do 5. Communicate effectively 6. Follow exceptional guiding principles 7. Praise your peers not yourself 8. Share your knowledge 9. Say thank you 10. Keep a smile on your face and the right attitude in your heart

PERSPECTIVE “Everybody’s clear that, currently at least, Turkey is moving away from a European perspective…We have to see what could be done in the future, to see if we can restart some kind of cooperation.” — JOHANNES HAHN, European Commissioner

BULGARIA

FYR MACEDONIA

75% Of Income Goes For Food, Bills, Taxes and Transport

Increase Of Average Monthly Gross Wage According to the data of Macedonian State Statistical Office, the index of the average monthly gross wage paid per employee in March 2017, compared to March 2016, was 101.9.

This increase is caused by the increase of the average monthly gross wage paid per employee in the sectors: Mining and quarrying (7.6%), Financial and insurance activities (7.2%) and Arts, entertainment and recreation (6.4%).

An increase in the average monthly gross wage paid per employee compared to the previous month was recorded in the sectors: Mining and quarrying (8.9%), Financial and insurance activities (5.8%) and Information and communication (5.2%).

The average monthly gross wage paid per employee in March 2017 was 32 999 denars (€537).

In March 2017, 1.3% of the employees in the Republic of Macedonia did not receive any payment.

According to data from the National Statistical Institute for the first quarter of the year, Bulgarians spend 75% of their income on food, household bills, taxes and insurance, transport and telecommunication, reported BNR. The total income per capita for the quarter is BGN 1 282 (€655), or 3.5% more than a year earlier.

Out of this income, 30.5% goes for food, 20.1% for household bills, 13.4% for taxes and insurance, and 11% for transportation and telecommunications.

ALBANIA

Banks' Q1 Net Profit Soars The combined net profit of Albanian banks jumped to 5.77 billion leks (€42.9 million) in the first quarter of the year, compared to a net profit of 1.43 billion leks in the like period of 2016, industry data shows.

The banks’ total outstanding loan portfolio grew 2.1% on the year to €4,47 billion in the first quarter, according to figures published on the website of Albania’s national association of banks, AAB. Corporate loans ticked down 0.4% to €3,2billion, whereas retail loans increased by 8.9% to €1.3 billion.

The ratio of non-performing loans dropped to 17.4% of Albanian banks aggregate loan portfolio as of end-March, from 19.3% a year earlier. In February, the level of non-performing loans also declined - to 18% from 18.9% a year earlier.

Total deposits with Albanian banks reached €8,5 billion at the end of March, up 3.6% year-on-year.

ALBANIAN CENTRAL BANK GOVERNOR GENT SEJKO

able to compete, and this fair is the right path towards that goal,” said Regon Džo, founder of the Belmax Centre.

The fair is tasked with presenting to Serbian companies the latest products in the field of construction and infrastructure materials, furniture, household appliThe international Zhejiang Export Fair 2017 has opened its doors on the Serbian ances, decorations, lighting, machinery and equipment, as well as introducing the market for the first time, bringing together more than 60 manufacturers and factories countries of the CEE region to the trends being followed by one of China’s fastest from the most developed Chinese province, Zhejiang, at Belgrade’s Belmax Centre. growing economies. Founded in 2001, Zhejiang Broad International Convention The fair aims to bring together the best manufacturers and traders which will & Exhibition Co., Ltd. (BCE) is a state-owned company that organises the most attract a larger number of customers with the quality eminent international conferences, exhibitions and of their products and services, as well as affordable fairs, under the patronage of the Ministry of Foreign prices. This is the first time that a Chinese province has Trade and Economic Cooperation of the People’s been the host and initiator of such a form of cooperaRepublic of China. tion. The organiser is the Zhejiang Broad International The Fair was supported by the Embassy of China Convention & Exhibition Co., Ltd., while Belgrade’s to Serbia, the Serbian Ministry of Trade, Tourism and Belmax Centre is one of the sponsors.

Telecommunications and the Chamber of Commerce “This event is proof that, with a little effort on both & Industry of Serbia. sides, direct communication between companies in “It is expected that this fair will contribute to China and companies from Serbia can be facilitated. increasing the trade exchange and direct contact The markets of the Balkans are mainly composed between Chinese and Serbian businesspeople,” said of small and medium-sized enterprises that need Serbian Trade, Tourism and Telecommunications different conditions of cooperation in order to be RASIM LJAJIĆ I REGON DŽO Minister Rasim Ljajić.

ZHEJIANG EXPORT

Largest Fair Of Chinese Manufacturers Opens In Belgrade

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CORPORATE MARKO KRIZMANIĆ, OWNER PROJEKT EKSPERT ADRIA D.O.O.

Networking Is Key Apart from the fact that we help in the designing and opening of units, we later take care of the daily maintenance of those facilities

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pening and maintaining public spaces, primarily commercial units, is easier and simpler with the support, expertise and assistance of company Project Ekspert Adria, under the “turnkey” system, and that experience is often also used in the construction of residential and private facilities.

■ Your company provides services that are just emerging on our market.

Who are your most frequent clients and what do your service packages include?

- Our clients are mainly large retail chains, owners of retail outlets or brands like Mango, Navigare, Simit Sarayi, SMJ, Accessorize, Head etc., who carry out all operations locally.

We have clients who have been operating on our market for a long time and are just upgrading their operations. The most interesting clients for us are those who are just launching operations and who utilise our highly respected experience and networking in order to overcome all the problems that arise for every start-up project.

They recognised the importance of regularly maintaining facilities and the positive impact that has on their customers, as well as generating savings, because 38 |

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for their investment projects they engage a local company that takes over all the work of employees who they would otherwise have to employ within their organisation.

Clients turn to us at the beginning of their business, when they open their retail outlets in agreement with us. We help them in designing units, completing technical documentation, communicating with the authorities in order to obtain all the necessary permits and equip those units, while later we help them with the everyday maintenance of those units.

■ It is not easy to gain clients. What is the crucial factor and on which standards do you base your operations?

- The crucial determining factor is that we

precision in processing the elements of interiors, while a third is turned towards “economic parameters”.

Many of our clients, due to a job well done, take us with them to follow them, technically and in investment terms, to various countries in the region, which gives us the opportunity to expand our network of collaborators and create our own expert networking, which is perhaps what we are most recognisable for. Our experience working in Serbia, Croatia, FYR Macedonia, Slovakia ... and currently in Greece, makes us really specific.

■ You have experience in designing, opening and maintaining public facilities.

How many similarities are there between that and providing services to private individuals according to the “turnMany of our clients, due key” system? to a job well done, take us - Large retail brands only work accordwith them to follow them, ing to the “turnkey” principle, because that has a direct impact on their costs technically and in investment and makes them predictable. terms, to various countries in you work on the opening the region, which enables us to andWhen maintaining of public spaces, apart expand our network of from having to take care of the fulfilment of all legally defined regulations, collaborators you have to be concerned about that complete all of our duties in a timely manspace being comfortable and functional for a large number of users. ner. For clients trust is important... for their When you work with individuals, the investments, expectations and the signed requirements are different because each agreement. We try to secure premium of us has a different vision of how we want materials and services for everyone. We the premises to look and how certain jobs monitor new trends and changes in legislashould be done. tion, regularly informing our clients in that Our operations in part also include regard, allowing them to thereby improve residential facilities and private projects, their operations. where the job only seems similar when it is We gain their trust because we go out in fact completely different, because these of our way maximally to meet their needs; are “private” users with very clear and we are not a hindrance to their ideas – refined taste for their space. ■ some prefer a quick result, others want

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WORLD NEWS

CHALLENGES “The time has come for France to meet the challenges of our time. The divisions and fractures that run through our society must be overcome, whether they be economic, social, political or moral.”

— EMMANUEL MACRON, President of France

SLOVAKIA

Foreign Trade Grew Significantly Slovakia’s exports and imports continued growing in March. While the total export of goods amounted to €6.7895 billion, which is a 16.5-percent increase year-on-year, total imports rose by 15.3 percent annually to €6.4128 billion.

The foreign trade balance thus amounted to €376.8 million, which is €106.2 million more than in March 2016, the Statistics Office informed on May. “In an annual comparison, foreign trade was impacted by the Easter effect which delayed it to April,” Ľubomír Koršňák, analyst with UniCredit Bank Czech Republic and Slovakia, wrote in a memo.

Over the first three months of 2017, the total export of goods increased by 10.2 percent y/y to €18.3126 billion, while total imports rose by 10.9 percent to €17.3378 billion. The foreign trade balance was in surplus, amounting to €974.8 million (down by €11.6 million y/y), according to the Statistics Office.

JPMorgan Buys Office Building In Ireland JPMorgan Chase has bought an office building in Ireland as it accelerates its contingency planning for moving jobs to the European Union once Britain leaves the trading bloc.

POLAND

Almost 60% Of Smes Implemented Innovations As many as 59% of Polish industrial SMEs have implemented any innovations last year, according to a report published by Siemens. Out of that number, 37.8% of implemented innovations were product oriented, while 32.7 % concerned improving production technologies and logistics. The most popular type of innovations was manufacturing automation using single machines, which was implemented by 48.6 % SMEs, while another 14.3% plan to carry out such solutions this year. Additional 14.3% of companies have automated full production processes, while 3.6 % will implement such fix this year.

The reasons behind innovations include customer demand (77.3%) and companies mission and strategy (46.7%). Among the respondents, 66% claim that innovative solutions improve their products or services, 58.8% said that it increases efficiency.

Only 13.7% of surveyed firms have worked with research centers on implementing innovations.

CHINA

Chevron Sells Gas Fields To Chinese?

China’s state-run Zhenhua Oil has signed a preliminary deal with Chevron to buy the US oil major’s natural gas fields in Bangladesh ((Bibiyana, Jalalabad and Moulavi Bazar) that are worth about $2 billion, two Beijing-based Chinese oil executives said.

Zhenhua is a subsidiary of China’s defence industry conglomerate NORINCO. A completed deal would mark China’s first major energy investment in the South Asian country, where Beijing is competing with New Delhi and Tokyo for influence. Bangladesh, though, holds the right of first refusal on the assets and could block the transaction.

The country, via its national oil company Petrobangla, is keen to buy the gas fields and is talking to international banks to raise financing, according to a banking source familiar with the process. Bangladesh is in the process of hiring global energy consultant Wood Mackenzie to assess the fields’ reserves before placing a formal bid to buy the assets, two Bangladesh sources familiar with the matter told Reuters.

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UK

New JP Morgan headquarters building at One George’s Doc

The American banking giant has acquired 200 Capital Dock in Dublin, a building with the capacity to house 1,000 people. The bank has said it will move hundreds of London jobs to Dublin, Frankfurt and Luxembourg in order to serve its customers in the EU after Britain’s exit, or Brexit.

Carin Bryans, senior country officer for JPMorgan in Ireland, says that the “new building gives us room to grow and some flexibility within the European Union.”

5 WAYS

TO BECOME A SMALLER TARGET FOR RANSOMWARE HACKERS

Here are five ways to make you a less-likely victim of cyberhacking and those who would try to hold your data for ransom.

1. Make safe and secure backups 2. Update and patch your systems 3. Use antivirus software 4. Educate your workforce 5. If hit, don't wait and see

CORPORATE 57TH INTERNATIONAL ART EXHIBITION, VENICE

B y JA M E S TA R M Y, B L O O M E R G

Place For Global Rich To Find Art’s Next Big Thing The Venice Biennale has emerged as the place where curators, collectors, advisers, and artists come to a consensus on what art is important Because of the large number of global rich, not to mention the cadre of art dealers who cater to them, the Biennale has become an unofficial forum where consensus is formed about art market standouts. (On the first few days pharmaceutical heiress Maja Hoffmann, San Francisco-based philanthropist Pamela Joyner, Farah Pahlavi, the exiled empress of Iran, and U.K.-based magnate Poju Zabludowicz were spotted at various events.) New artists are anointed as stars, and the status of existing art celebrities is reinforced.

“It doesn’t always make careers, but it definitely can make careers,” said Heather Harmon, a director of the New York-based art advisory KCM Fine Arts, which is helping to build billionaire Cirque du Soleil founder Guy Laliberté’s collection, Lune Rouge.

SATELLITE SHOWS Hard to find (at least, less-publicized) shows have also emerged as must-sees, including the Future Generation Art Prize, which features an exhibition of 21 shortlisted artists in an ornate palazzo. One of the artists in the show is Njideka Akunyili Crosby, a Los Angeles-based artist whose last painting to sell at auction was estiEscalade Beyond Chromatic Lands mated from $515,680 to $774,000 and (2016-2017), by Sheila Hicks in the Arsenale sold for $3.2 million in March at Christie’s ver the course of one week in London. Before that sale, just two of May, hundreds of the world’s Crosby’s works had ever gone to auction, wealthiest people converge according to Artnet. on Venice for a bacchanal of Another must-see ancillary event is openings, parties, and receptions that at the Palazzo Fortuny, a gothic mansion that Belgian dealer Axel Vervoordt revolve around the commencement of th International Art Exhibition, turns into an exhibition space featurthe 57 ing contemporary photography, mean ostensibly not-for-profit art show dieval drawings, neolithic sculptures, that’s known colloquially as the Venice and Japanese pottery. “The whole art Biennale. world is in Venice,” said Vervoordt.

The Biennale comprises 85 national pavilions, 29 of which are in a “All the collectors, all the art muBecause of the large number seum people, they’re all here. It’s leafy park called the Giardini, where of global rich, not to mention the best period.” countries that include the U.S. and the cadre of art dealers who Not that Venice is the only art Russia host contemporary art exhibits. The rest of the official show is in cater to them, the Biennale has world event to attract a global audience. Art fairs, including Frieze in the Arsenale, a massive warehouse become an unofficial forum London, TEFAF in Maastricht, and Art complex in which one curator (this where consensus is formed Basel in Switzerland, attract compaiteration was organised by Chrisabout art market standouts tine Mace, the chief curator of the rable levels of wealthy collectors and Pompidou Centre in Paris) assembles influential curators, and the documenta art exhibition in Kassel, Germany, hundreds of artworks around a theme.

Other standouts included a video has a reputation for its outsized impact Satellite exhibitions will also be

by New York-based artist Rachel Rose on curatorial taste. sponsored by philanthropies and musein the Central Pavilion in the Giardini, ums, and in the case of the Punta Della But whereas documenta is often Brooklyn-based artist Carol Bove’s Dogana, by billionaire François Pinault. inscrutably avant-garde, and art fairs are sculptures in the Swiss Pavilion (Bove (As Maramotti spoke outside, Pinault by definition strictly commercial, Venice is co-represented by mega-dealer David exited the building, which is currently manages to find a sweet spot someZwirner), and George Drivas’s installation at the Greek Pavilion, which where between the two. If someone goes hosting an exhibition of controversial included a shining, mirrored maze and a to art fairs, the level that could be found and potentially vastly lucrative set of new movie starring Charlotte Rampling. in Venice is so much more elevated.■ works by artist Damien Hirst.)

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PROFILE

Celebrating Diversity And Teamwork PIA BARBORIČ JURJAŠEVIČ General Manager of Imperial Tobacco, Adriatic

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’m very proud that I’ve had a chance in the last three years to lead the team of professionals at Imperial Tobacco for the Adriatic region. This team achieves fantastic results and members always strive to do their job with a high level of dedication and, most importantly, with personal integrity and by respecting the integrity of the company and the markets where we operate.

What is probably quite specific for my career is the fact that I’ve actually been working for the same company for over 20 years. After I graduated from the Faculty of Economics in Ljubljana, I started my career in the fashion accessories business, which at the time was under the Tobacna Ljubljana Group. And that’s the company that I work for even today, of course, nowadays under the name of Imperial Brands Group. We have changed names and ownership structures, but the most important factor is that many people with whom I started my career, after all the turbulent changes and transformations, still come to our offices today with a smile. That’s the main reason why I’m also smiling and satisfied.

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For over twenty years, my business and personal roads have led across the Adriatic region, which provides many challenges, but also offers many rewards, particularly when it comes to diversity of cultures, opportunities in each specific market and the extraordinary people I’ve had a chance to meet over the last two decades for the region, followed by taking over responsibility for our tobacco business and then all other business segments in Slovenia. This includes wholesale and retail businesses, which are of course connected to our core, but also represent a world of their own. This was also a great learning opportunity for me.

Marketing and brands are still a very important part of my job, because we work with amazing international brands like West, Rizla, Drum, Gauloises and – I will take the right to say one of the

Creating the atmosphere where learning from mistakes is part of the normal, everyday process is one of my leadership priorities. And we already see many good results from this approach! most remarkable premium brands in the category in the region – Davidoff.

Although I had many interesting and sometimes difficult situations during my career, the most challenging part of the business is to create an energised team environment by resolving issues or any

form of conflict and generating extra effort, enthusiasm and commitment within the team. If you succeed with this, you are a winner.

I’m often asked how one team can work from many different locations. In our case, we are managing the Adriatic region from three different locations: Ljubljana, Belgrade and Skopje. But my answer is always very simple: creating a pleasant working atmosphere nowadays is not connected to office space – it’s about mindset. Also, supporting your team and having fruitful collaboration is not prevented by geography. Barriers only exist in people’s minds. So, my persistent push to review not only what we have done, but also how we have done it, contributes to team members’ feeling like their efforts are valued, and restores energy to grow even further – both as professionals and as a business.

Personally, I strongly value learning from mistakes and giving a chance to people to try, make a mistake and learn from that. Creating the atmosphere where learning from mistakes is part of the normal, everyday process is one of my leadership priorities. And we already see many good results from this approach! 

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