Ivo Usmiani, director, Jadran Galenski laboratorij We avoided the global economic crisis by turning towards Russia and the CIS
Adriatic Sea Defence & Aerospace Exhibition, Split In addition to guns and assault rifles, Croatia can offer armoured fighting vehicles
Still going downhill This year RBA analysts anticipate a 2.3% increase in industrial production over last year
INTERVIEW
DEFENCE INDUSTRY
INDUSTRY
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Croatian Business & Finance Weekly Established in 1953 Monday / 4th April / 2011 Year IV / No 0147 www.privredni.hr
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READER’S DIGEST TRUSTED BRANDS
Croatians trust local brands and the euro Nine local brands have been considered the most trustworthy for five years Krešimir Sočković he Trusted Brands award, presented by Reader’s Digest to Croatia for the fifth consecutive year, awarded 21 local and 13 foreign brands from 35 products. The survey was conducted in co-operation with the British agency Wyman Dillon, with over 33,000 respondents. The questions regarding trade marks are open-type questions, allowing respondents to nominate any brand they wish. The survey
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Croatians have the least trust in their government and legal system also measures the level of trust in various institutions and professions. It has been conducted in Croatia since 2007. This year, additional attention was paid to public attitude towards the EU and euro. According to the survey results, Europeans have the greatest trust in brands which won in over seven countries: Nivea (skin care cosmetics), Nokia (mobile phones), Visa (credit card), Canon (video and photo cameras), HP/HP Compaq (PC’s), Ariel (laundry
detergent), Kellogg’s (breakfast cereal), Nestlé (breakfast cereal) and Miele (home appliances). Croatian favourites In various categories from dairy and canned meat products to coffee, chocolate and water, the winners were Dukat, Gavrilović, Franck, Kraš, Kutjevo, Cedevita; Lino in the baby food category, Jana (water), Pliva (in the category of analgesics) and Belupo Ne-
ofen (pain relief medicine). Some brands have won for the fifth year: local brands of Dukat, Franck, Konzum, Ina, Croatia osiguranje, Generalturist, Gavrilović, Kraš and Cedevita and 10 foreign ones: Nivea, Opel, Gorenje, Hewlett Packard, Nokia, TCom, Sony, American Express, Ariel and Lesnina. Environment above politics Although Croatians prefer local brands, they do not feel so strongly about their institutions
and politicians. However, trust in institutions is low in all 16 European countries. Croatians have the greatest trust in marriage (81%) and TV and radio (58%). More than half of Croatians have trust in the internet, euro, institutions, companies and environmental activities and the least trust in their government (7%) and legal system (14%). According to EU euro countries, 51% have trust in this currency with Croatians scoring even higher (52%).
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Privredni Pr P riivvre riv redn dni vjesnik Year No Ye Y eaarr IIV VN o 0147
HANS CHRISTIAN VALLANT, BOARD PRESIDENT, RAIFFEISEN BANK HOUSING SAVINGS
There are ample house savings banks in Croatia
he system of house savings became popular in Croatia over 10 years ago, offering the public favourable, long-term and stable financing for housing purposes. The model of housing savings was imported from Central European countries such as Austria and Germany. House savings banks deal exclusively with collecting house savings and placing the funds in housing loans. The difference in housing savings models depends on the legislation and mentality of the country, with significant discrepancies. Research shows that Croats still lack the habit of long-term saving, which is why the absence of the culture of saving still poses a great obstacle to creating a brighter future. Huge differences in public attitudes and relations towards the economic crisis has also been recently visible. In Austria, for example, it led to a greater number of savings depositors, who recognised personal saving as the basis of security. The situation is different
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IMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription
in Croatia. A slight 6% growth in savings was registered last year, but also a considerable downfall in total lending (15%). On the other side of the Atlantic, after the collapse of several American banks within the banking system, the public realised the model of house savings, although conservative and dull, is definitely worth attention since it cannot be jeopardised by dubious investing. Furthermore, it reflects positively on the local economy and microeconomy. This situation was also undoubtedly influenced by the recent report from the World Bank, which evaluated house saving as the most secure and optimal savings model. There are currently five such banks in Croatia and this is completely sufficient for our market. Notwithstanding, even though more than 600,000 people deposit money in house
The World Bank evaluated house savings as the most secure and optimal saving model savings banks, only a few use the opportunity to take out favourable housing loans. This has been recently recognised by West European countries and the state encourages housing savings with increased state subsidies, which are higher in all countries compared with Croatia. This fact is a clear indicator of authorities ignorance on how to motivate the public to spend, which would ultimately benefit the society in general.
FOR PUBLISHER Nikola Baučić +385 1 4846661 uprava@privredni.hr
IMC MANAGER Dea Olup +385 1 5600028 olup@privredni.hr
EDITOR IN CHIEF Darko Buković +385 1 5600003 bukovic@privredni.hr
TRANSLATION Lučana Banek lucanab@gmail.com Mirjana Cibulka mirjana.cibulka@gmail.com
EXECUTIVE EDITORS Andrea Marić maric@privredni.hr Vesna Antonić antonic@privredni.hr
INTERNATIONAL OPERATIONS Ray Fletcher fletcher@privredni.hr
( €87 million JGL income in 2010
INTERVIEW: IVO USMIANI, DIRECTOR, JADRAN GALEN
We avoided the glob Russia and the Com
Our story starts in 1998. We entered these markets, Russia offices. It is evident today this was a crucial strategic and vis Igor Vukić adran Galenski Laboratorij (JGL) is a fast-growing pharmaceutical company founded in 1991 in Rijeka. As a result of systematic investment into the know-how of almost 400 employees, today the company has over 300 products, constantly developing and expanding its portfolio to existing and new markets. Since its beginning, JGL has grown at an incredible pace and exclusively organically. Total income, from €0.20 million in 1991, rocketed to €87.12 million in 2010. Average growth was 25% per annum during that period. Sales income from foreign markets grew accordingly, to an average rate of 40%, comprising 65% of total sales of JGL in 2010. Quite early, JGL became aware
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It is not enough to have a quality product with competitive prices investment comes first that in addition to being small, the Croatian market was also under heavy pressure from continuous price cuts and severe competition. It became clear that company efforts should be oriented towards exports. An opportunity was recognised in the East, especially Russia since they perceive Croatia as a western producer, and the fact the market was not as highly competitive as it is today. The achieved export growth of 50% last year shows that entering these markets was crucial for JGL, and €41 million in exports puts JGL in 70th position on the scale of Croatian exporters. Af-
ter 10 years of being present on these markets, JGL still has high growth potential. In Moscow and other big cities it has 120 employees, in the Ukraine 45, and 26 in Kazakhstan. Products are registered and sold in Georgia and Azerbaijan, actually on all markets of the ex Soviet Union. JGL’s director, Ivo Usmiani described for Privredni vjesnik how JGL operates on eastern markets. What is the sales value in Kazakhstan and which products does it concern? - In Kazakhstan we mainly sell products from the category of
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INTERVIEW
( €41 million export earnings
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( over 60%
exports in the sales structure
NSKI LABORATORIJ
bal economic crisis by turning towards mmonwealth of Independent States
in particular, in the midst of the crisis, when most companies started to retreat, shutting down their representative sionary move which bore fruit but achievable according to our anticipations. It was planned to hit €2.9 million. Is the product structure the same as in the case of former sales in that country or have new products been introduced? - JGL has a similar product structure for all CIS markets, considering the uneven doctrine of treatment and consumer habits. Still, we pay a lot of attention to those minute, but quite important differences between individual countries.
prescription-free drugs, since the demand is quite high. They include Aqua Maris, Dramina, Vagilak, Rozamet, Folacin, Feminal and others. However, this does not mean we will not enter - in the future - the area of prescription medicines and attempt to compete with hospital medicine lists, subsidised by the state budget. Market growth is exceptional, up to 61%. During the crisis years (2008-2010), our achievements were below planned, ranging between €600,000 in 2007 and almost €2 million in 2010. The plan for 2011 was extremely ambitious,
How do you sell your products: through representatives, partnership with local companies or directly to whole-sale companies? - JGL established its representative office in 2006 in Almati as soon as it recognised the potential of the Kazakhstan market. Our buyers there are big national dispensary chemists with whom we have direct contracts. The distribution of goods is of quality and we have not encountered any problems with payment. Prices are one of the highest, higher than in the Ukraine and Russia. Our representative office is focused on marketing and sales activities. We have 26 workers employed in marketing, and try to create recognisability in accordance with our corporative values. Does the state support your efforts, for example through subsidising marketing or fair exhibitions or helping to obtain the necessary documentation? - Unfortunately, even though we are the biggest exporter to Russia, support is lacking and we
rely on ourselves and our judgements. In your experience, what could the state do to help exporters to these markets? - The state should help us in way that ensures exports to CIS countries from potential payment and other risks. For example, we could harmonise marketing campaigns. Our Aqua Maris campaign promotes the Adriatic as the purest and most beautiful sea in the world! What are the opportunities for other Croatian companies on these markets? - Opportunities are equal for all. Our story started in 1998. We entered these markets, Russia in particular, in the midst of the crisis, when most companies started to retreat, shutting down their representative offices. It is evident today this was a crucial strategic and visionary move which bore fruit. JGL’s export share in our sales structure exceeds 60%, whereas the export growth rate is almost
Even though we are the biggest exporter to Russia support is lacking and we rely on ourselves 50%. Unfortunately, it is far more difficult to enter such markets. It is almost impossible since the competition is vast. In Russia, for example, there are around 800 registered local and foreign producers, and JGL ranks 50 according to sales. Our blockbuster Aqua Maris ranks 30 of 6,000 to 7,000 products, and takes first position in its segment. These positions
USA and BRIC countries After success in Russia, the Ukraine, Kazakhstan and other CIS countries, JGL started to consider the possibility to enter US market. They established our representative office in January and are intensively considering the markets of Brazil, China and India. According to JGL, these markets are risky, since they are on opposite sides of the world, with a completely different business culture, but internationalisation is their fundamental challenge. JGL is preparing by investing a large percentage of income in research and development. have been achieved through long and dedicated work and they must be maintained year by year. What is the reputation of Croatian companies in these countries? Are we exploiting enough of their market potential in terms of exports? - In general, Croatia enjoys a good reputation as do its products, the roots of which go back to the period of Yugoslavia. Market potential is underexploited due to great obstacles. Legislation is complex and the registration process is time-consuming. It is necessary to accept that investment is high, which presents an obstacle. It is understandable that it is not enough to have quality and a competitive product. Investment comes first. We survived the first few investment years. We were patient and we build our reputation on the market, primarily by investing into staff, which paid off in numerous ways. We used the same experience for other markets.
4 ::: news
Real GDP falls by 1.2% Croatian gross domestic product (GDP) registered real GDP drop of 1.2% in 2010 over 2009, according to data provided by the Central Bureau for Statistics (CBS). In the last quarter of 2010 GDP decreased by 0.6% over 2009. These are slightly less intense fall-off rates in relation to the first estimate published by the CBS over a month ago, considering the first estimate for the last quarter of 2010 pointed to a 0.7% drop, and 1.4% drop for the entire 2010. €0.52 billion of profit for banks in 2010 In 2010, banks in Croatia recorded €0.52 billion in post-tax profit, 14.6% more in relation to the year before, according to data from the unrevised report published by the Croatian National Bank on Thursday. Total interest income decreased to €2.9 billion (some 7% down). Interest expenses registered a more accelerated fall, from €1.82 billion to €1.40 billion, almost 23%. This was fully
expected considering the plummet in interest rates on savings in 2010. During 2010, nett noninterest income decreased from €0.79 billion to €0.65 billion. Total reserves stood at €0.49 billion in 2001, which is €8.2 million up year-on-year. Census begins A census covering the public, households and apartments started on Friday 1 April. This is the most extensive research in Croatia, and will be carried out between April1 and April 28. It will cost €23.96 million, and preliminary results will be revealed no later than June 30 of this year. The census is conducted regularly every ten years.
Privredni vjesnik Year IV No 0147
PRESENTA NOVA EXPORTS TO OVER 60 COUNTRIES
15% revenue growth in 2010 in the midst of a most serious crisis Having witnessed indecisiveness from small buyers the company focused on larger buyers using Pre-accession funds for international promotion many. They have achieved significant success there and have signed a three year fixed term contract with one of the largest optical chains in Germany, Apollo Optik. The two companies are establishing a partnership relationship and the German partner always brings new orders. They have not laid off staff and there have been no salary cuts. This year they are planning to hire a mechanical engineer, a designer and several workers in production.
Jasminka Filipas s a result of the continuous development of new technology in the design and production of systems for equipping optician’s shops with anti-theft security systems, the company Presenta Nova from Zagreb has succeeded in selling its products in over 60 countries worldwide in less than nine years. The company project Increased competitiveness of exporting products in the European Union has succeeded in obtaining a grant of €88,000 through the former pre-accession programme Phare 2006. “It is a large amount for a small company such as ours and we used it for further product development and advertising on foreign markets. In addition, the tender procedure in which we participated assisted us in gaining experience with Pre-accession funds which we are currently using for higher quality applications for funds from the Ministry of Economy, Labour and Entrepreneurship,” stated Iva Pintur, Head of Marketing. She added that they had to have a symbol stating Financed from EU funds along with every project, which increased a positive impact on potential clients and that was important as the main competitors are from Germany and the Netherlands.
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New jobs The process for obtaining funds is rather complex. They learned about the tender via an email from HBOR and they found further details at an informative workshop at the Ministry of Economy, Labour and Entrepreneurship. The project was written in cooperation with consultants to the company founded in Croatia by a Slovenian citizen with broad experience in applying for Preaccession funds. According the
company, that co-operation was of significant importance to the company since prior to it, as opposed to the Slovenians, they had had no such experience. Consultants ensure all forms are completed and pay attention to other particularities relevant for project assessment. The company has to decide what activities will be included in the project as well as how they are to be performed once the project has started. The company experienced a slight decrease in revenue in 2009, whilst in 2010, which was the most difficult year for many companies, it had revenue growth of 15%. “The economic crisis resulted in indecisiveness from small buyers and we focused on creating more quality relationships with the larger buyers. Small buyers in Germany were given the opportunity to lease-purchase,” explained Iva Pintur adding that in Germany there is a company Presenta Nova GmbH, which distributes their products in Ger-
North American and Middle East markets The company exports mainly to Germany, France, Spain, Great Britain and Italy. They are planning to promote their presence in North America and the Middle East. The have engaged an agent in Canada for market research and setting up the business and it has already made its first delivery for Walmart. “Our success is based on innovation, modern design and excellent quality. We pay special attention to intellectual property as our greatest source of growth. We have a pat-
Early EU accession would enable our further expansion into new markets ent at European level (an American patent procedure is ongoing), six protected useful models and 20 protected industrial features at the European level. Growth is hindered by the unrealistic Kuna/ Euro exchange rate. Early EU accession would enable our further expansion into new markets, the employment of new staff and increase sales revenue”, concluded Iva Pintur.
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138 exhibitors from 23 countries at Adriatic Sea Defence & Aerospace Exhibition, Split
In addition to guns and assault rifles, Croatia can offer armoured fighting vehicles Military hardware is not only weapons - Croatian companies also specialise in high quality combat helmets and patrol ships Jozo Vrdoljak he International Military Industry Fair, Adriatic Sea Defence & Aerospace Exhibition (ASDA) was recently held in Split, Croatia for the first time. 138 exhibitors from 23 countries attended with 54 exhibitors from Croatia. The organiser was the American company TNT Productions Inc. Opening the fair, Prime Minister, Jadranka Kosor, expressed her belief that the fair would become a tradition. “An important aspect of the Adriatic Sea Defence & Aerospace Exhibition is its regional focus. ASDA will give a significant contribution to regional dialogue and become part of the mosaic for promoting the regional stability and safety”, she pointed out. Davor Božinović, Minister of Defence, emphasised Croatian co-operation with the most important armed forces in the world, as a member of NATO. “They are our allies and concurrently the largest producers of military hardware and weapons which gives room for the Croatian special-purpose industry”, he stated.
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Economic impact of armed forces Nadan Vidošević, President of the Croatian Chamber mber of Economy, stressed ssed the extreme imporportance of the event for the Croatian econonomy and reminded ded that in the past seveveral companies had been founded, which ich currently have ave brands recognised sed globally. Vidošević vić particularly stressed ed the importance of the armed forces es
and their interconnection with other areas of industry. “The Association of Croatian Military Hardware was founded in 2003 within the Croatian Chamber of Economy. It has been a most successful economic segment as Croatia has not succeeded in obtaining worldwide recognition for its brands
Croatian military industry export value USD120 million in 2010 in any other economic field”, stated Vidošević. Croatia exports of military hardware and weapons are organised by mediation of the Agency Alan. According to Ivica Nekić, Director, total exports by the Croatian military industry stood at USD120 million, which was some 7% up over the previous year. “We succeeded in producing g a gun that is competitive on the world market. To date some 13 million items have been exportorted to the US. We have also proroduced an assault rifle of top qualuality. We have managed to proroduce one of the
best combat helmets in the world, which is currently sold globally. We also export patrol ships and a range of other military hardware and weapons. It is important to stress that the military industry is not subsidised and involves several other producers from other economic segments”, explained Nekić. Together on third markets A memorandum of understanding between Đuro Đaković and Patria Land Systems companies was signed at ASDA 2011, as these two companies will, in the future, penetrate third markets together. The Ministry of Defence has appointed Đuro Đaković as its partner and therefore every tender winner for the production of armoured fighting vehicles was obliged to produce its vehicles in co-operation with that company. That obligation applied also to Patria Land Systems which won the tender. Bar Bartul Jerković, Đuro Đaković Special Vehicles Director revealed
Geofoto military maps Geofoto also participated at ASDA, as one of the most successful Croatian companies in the world. It presented its ‘geoinformation’ system which has been developed for the Croatian Ministry of Defence. “We have made two types of military maps of Croatia, in full compliance with NATO standards. This type of system has no boundaries and we are anticipating orders beyond the region”, pointed out Mladen Rapaić, Geofoto Assistant Director. that he anticipates international market penetration as a result of co-operation with Patria. “It has been our objective since inception. The conclusion of the contract on the supply to our Ministry of Defence is ongoing with respect to the delivery of 126 armoured fighting vehicles with a value of €171 million. We are definitely competitive on world markets and have sufficient capacity for the sale of fic several types of armoured fightsev ing vehicles abroad”, pointed out ou Jerković.
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WE PRESENT
MARKO BUBALO, CREATIVE SOLUTIONS, ZAGREB
Privredni vjesnik Year IV No 0147
POKLONIME.HR, ZAGREB
Design and marketing as keys to success In addition to branding the agency is currently dealing with graphic and web design, online promotion and guerrilla marketing
Happy birthday - be a shepherd for a day These web pages feature specialised gifts such as “Renta-sheep” or “Be a shepherd for a day” he agency Marko Bubalo was founded in 2008 and its first project was the branding of Cubus watches. In addition to branding the agency is currently dealing with graphic and web design, online promotion and guerrilla marketing. Bruno Smiljan, executive director, stated that the Cubus project was extremely extensive. It required a variety experts and its objective was to present and position the brand on the market. “Originally, the project faced scepticism from many partners and subcontractors, some even suggesting the branding of watches as ‘foreign’. Eventually, persistence paid off and, as a result, we have an identifiable and strong Croatian brand,” he added. Marketing in Croatia is still in a stage of development, according to Smiljan and, consequently, the agency was originally faced with many companies whose owners were reluctant to invest in marketing, considering it an unnecessary expense. “Nevertheless, local entrepreneurs’ awareness of the necessity to create an identifiable brand is deepening”.
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Delicacy on a plastic plate According to Smiljan, local products are normally criticised for their bad design. This is a consequence of the fact that entrepreneurs are often economising on designer solutions,
often resulting in products with functional excellence which, because of their obsolete packaging or design, no one would purchase. “It is as if you served an exquisite delicacy on a plastic plate”, explained Smiljan picturesquely. The current economic situation has also had a great impact on this prosperous field of activity. Nevertheless, the recession is merely cyclical, it comes and goes, leaving the market only to those who have invested into,
Entrepreneurs are often economising on designer solutions promoted and developed their brands. “The recession impacted on the critical importance of communicative solutions which result in sales increase and client revenue both currently and in the future.” The agency relies exclusively on financing from its own sources as this is the best motivation and incentive to always do the best. “State-owned institutions could definitely promote training for entrepreneurs and support for investment into marketing. We hope the importance of branding, design and product promotion will be recognised as critical elements for the success of a company,” concluded Smiljan. (B.O.)
reating a unique T-shirt in co-operation with a wellknown local designer Robert Sever, a course in graffiti drawing with the best known Croatian artist, Slaven Lunar Kosanović, learning to dance at the Lana Jurčević dance studio or being introduced to the basics of oenology and cooking with Rene Bakalović, are only some of over 150 interesting gifts offered by the gift portal PokloniMe.hr. Additionally, these web pages feature gifts called Rent-a-sheep or A shepherd for a day for anyone wishing to become a shepherd. The Croatian public is particularly sensitised to the profession of shepherd as a result of the employment policy and Prime Minister Kosor’s personal intervention in banning the import of shepherds from neighbouring countries. People receiving these gifts will have the opportunity to socialise with a shepherd and goats by the river Zrmanja, milk them, learn to make cheese and enjoy the exquisite local food and nature, explained Kata Barišić, co-owner of the portal, which is actually the first Croatian web shop for experiential and personalised gifts for all occasions.
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First hand experience It has to be emphasised that this project did not come into existence overnight. It appeared in February as a result of two
years overall preparation. “PokloniMe is a story which originated in the faith that a happy life is not measured merely by bank account figures but rather a sum of experiences assisting us in learning something new about the world and ourselves. A detailed analysis of both foreign and local market, consumer behaviour research, forthcoming trends and local suppliers throughout Croatian regions, were the first steps for initiating the project on a sound footing. Subsequently, there was the entertaining part to it – flying, cooking, instrument playing, climbing trees, adrenaline driving, massage and similar experiences. In compliance with the
The web shop also offers personalised chocolates high quality and initial standards of suppliers, the overall prospectus on the web pages needed to be tested and analysed at all stages. This was followed by high quality options to make sure shoppers identify us as a venue with the best and the highest quality choices for all the occasions,” explained Kata Barišić. “The web shop offers also personalised chocolates and we are anticipating personalised wines, sparkling wines and spirits”. (B.O.)
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CROATIAN FOREIGN CURRENCY MARKET Currency
AUD CAD JPY CHF GBP USD EUR Source: HNB
Kuna exchange mid-rate
EUR
7.386
5,509669 5,516668 6,660416 5,678773 8,814812 5,565746 7,382405 WEEK APRIL 2, 2011
USD
5.28
29.3.
30.3.
31.3.
5.26
5.70
7.382
5.24
5.68
7.380
5.22
5.66
7.378
5.20
5.64
1.4.
5.18 28.3.
29.3.
30.3.
STILL GOING DOWNHILL
This year RBA analysts anticipate a 2.3% increase in industrial production over last year
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31.3.
1.4.
5.62 28.3.
29.3.
30.3.
31.3.
1.4.
::: news
Industrial production reduces by 4.1% n concordance with the anticipations of RBA analysts, negative trends in industrial production continued during February, which shows that recovery in foreign demand for Croatian products, fails to motivate the recovery of the local real sector. In fact, since the Croatian economy is not overly export-oriented, the positive effects of recovery in more developed countries are limited. Simultaneously, local demand remains relatively weak, influenced by negative trends on the labour market and a high level of consumer pessimism. According to data provided by the Central Bureau for Statistics, industrial production dropped 4.1% compared with February 2010. In the categories of the main industrial groups (MIG), the production of long-life products for mass consumption continues to
5.72
7.384
7.376 28.3.
CHF
register the highest annual downfall. Its share in total production is relatively small and decreased by 25%. Notwithstanding, all other MIG categories registered a downfall on a year-on-year basis, except for intermediary products. Downfall In terms of the national classification of activities (NCA), all three main areas are in decline year-on-year. Mining and excavation as well as electric energy supply dropped 6.5%, and the processing industry 3.2% yearon-year. On a monthly level, seasonally adjusted data point to the growth of industrial production (+1.9%). In addition to intermediary products, this was contributed by the production of longlife and short-life products for mass consumption. Even though the negative trend of industrial
product supplies was interrupted in January after 19 months over 2010, supplies dropped again
Industrial products supplies dropped 7.5% in February 7.5% in February. This year, we expect industrial production to increase 2.3% over 2010, mainly due to the influence of the base effect and foreign demand. Furthermore, the long-term and considerable downfall of industrial products supply point to the conclusion that supplies are probably almost entirely exhausted. Positive movements will be more intensive in the second half of the year when local demand starts to recover, conclude RBA analysts. (V.A.)
Global Finance: PBZ – the best bank in Croatia The reputable financial magazine Global Finance has named Privredna banka Zagreb as the best Croatian bank in the category World’s Best Emerging Market Banks 2011 in Central & Eastern Europe. Global Finance has been selecting top banking performers in emerging markets for 18 years. The report covers Asia, the Middle East and Africa, Latin America, and Central and Eastern Europe. Criteria for the selection of winners included financial indicators, strategic relations, customer service, competitive pricing and innovative products. Zaba to no longer use Moody’s services Zagrebačka banka (ZABA) will no longer use Moody’s rating services, according to Zaba’s statement. This decision was brought as the result of harmonisation of the Bank’s needs with a number of ratings and rationalisation. Zaba will continue with the direct rating from Standard&Poor’s and Fitch Ratings. In December 2010, Moody’s published their report on Zagrebačka banka, concluding the annual rating cycle, with the following ratings:- financial power rating rank D+, global local currency deposit rating rank Baa2, foreign currency deposit rating rank Ba1. In their report, Moody’s underline that Zaba’s Outlook Stable Rating was confirmed prior to the withdrawal of rating activities.
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Privredni vjesnik Year IV No 0147
Nautical tourism
Sailing made easier Simplified procedures for the registration of visiting vessels Jozo Vrdoljak autical tourism in Croatia has been recording constant growth. Thus, in 2010 there were 58,394 registrations of foreign yachts, growth of some 2%, whilst the
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58,394 foreign yachts registered in 2010 number of visitors renting saw a 3.2% increase. “This year there are no alterations to regulations concerning nautical tourism and no new fee increases in nautical
tourism regulated by the state,” pointed out Mario Babić, State Secretary in the Ministry of Sea, Transport and Infrastructure, at a meeting on preparations for this year tourist season. In order to simplify the administrative procedures, boat owners will be able to register the stay of visitors online via the e-Nautics system rather than in tourist boards as in the past. “It certainly is a big step forward over last year when tourist boards had to employ additional personnel to deal with this task. Two years ago tourist registrations saw utter chaos.
Strengthening services Whilst there has been a reduction in the number of boats sold, a slight uptick in demand for nautical services shows ACI are on the right track. “The number of inquiries from both foreign and local boat owners is rising constantly” stated Serđo Dvornik, Head of After Sales Support and Services for Croatia for leading naval architects such as Mochi, Ferretti Yachts, Bertram, Dehler, Hanse and others. “I would welcome company initiatives such as NCP from Šibenik, who have been constantly investing into infrastructure equipment and into the training of quality staff. ACI attempts to follow these trends are evident with the purchase of a 130 tonne trawler lift in ACI Komolac Marina, whose launch is anticipated soon. Simplified administration will certainly result in strengthening of services offer in nautical tourism”, pointed out Dvornik.
Anticipation of a better season The Marina Association at the Croatian Chamber of Economy (HGK) has particularly welcomed the decision to prepare a ruling to simplify registration for the temporary stay of foreigners, which would enable a longer than 90-day stay to crew members of foreign mega-yachts as well as the longer stay of such vessels within Croatian marinas and shipyards. The Board President of ACI and the President of the Marina Association, Anto
Vi o l i ć , anticipates an even better season in 2011 than 2010, which was excellent. “According to recent bookings results and feedback from fairs, ACI could see a 10% more successful season than 2010. I am relaxed about this, since yachtsmen have recognised our investment into the largest Croatian marina chain and the level of interest in our services. We are anticipating an overall successful season as yachtsmen have identified our part of the Adriatic as one of the most attractive destinations”, Violić pointed out. He warmly welcomes the introduction of simplified administrative procedures in business, emphasising that it is a common wish of all those involved in nautical tourism. “In my opinion, several other issues could be dealt with and the respective Ministry has shown, with its latest measures, to be on the right path to tackling most hurdles which are slowing down the development of the nautical sector”, concluded Violić.
Frankfurt, Oslo and Stockholm flights are also planned. Last year, 275,000 passengers passed through Zadar Airport, and the number is expected to increase between 20% and 28% this year.
Winners of the Best Customer Service Award Recently, the best companies of the award programme Best in Customer Service Award for 2010 were announced. The winners were AH Servis (automobile industry), Aon Hrvatska (consulting), DHL International Hrvatska (postal and courier mail services), Hilton Imperial Dubrovnik (hotels), Holcim Hrvatska (construction), and International Kindergarten Horizons in the category of small-sized companies.
Online registrations for the nautical sector have significantly simplified the overall process,” pointed out Ivona Smoljić from Marina Kaštela. The possibility of registration of foreign yachts directly by marinas and is anticipated in 2012, which is a further improvement of the system, as to date it has been done mostly by harbour master offices.
::: news More intensified promotion of Croatia Recently, Minister of Tourism Damir Bajs and ECTAA president Irena Gueorguieva signed an agreement on marketing cooperation between the Croatian Tourism Association and the European Travel Agents’ and Tour Operators’ Association (ECTAA), for €50,000. The co-operation will last one year, until March 31, 2012. The agreement provides for the improved tourism promotion of Croatia, stronger competitiveness in relation to other Mediter-
ranean countries and promotes Croatia as an ECTAA preferred destination of the year. Summer flight schedule for Zadar Airport Zadar Airport introduced a new flight schedule with the arrival of the “summer” time. As in the case of last year, low-budget airlines Ryanair and Germanwings will have the greatest number of flights. Zadar - London flights will be five times and to Brussels four times each week. Furthermore, Zadar - Dublin, Düsseldorf,
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SARAJEVO BUSINESS FORUM
2nd INTERNATIONAL INVESTMENT CONFERENCE 6-8 APRIL 2011. SARAJEVO, BOSNA I HERCEGOVINA
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