Online shopping 25 portals were involved in group shopping during mid2011 and now that number has doubled
Damir Bulić, Board President, Kraš Brands and business excellence our competitive advantage and based on innovative technology and a reputable name
Croatian entrepreneurs in 2011 €4.39 billion profit from 57,000 plus entrepreneurs but €3.4 billion losses from 41,300
ECONOMY PAGES 2-3
INTERVIEW PAGE 4
2011 RESULTS PAGE 6 2008 2009 2010 2011
Croatian Business & Finance Weekly Established in 1953 Monday / 28th May / 2012 Year V / No 0201 www.privredni.hr
S U P P O R T E D
B Y
T H E
pvinternational pv international C R O A T I A N
C H A M B E R
O F
E C O N O M Y
NEW PROGRAMMES
FUNDS AS A GIFT
The goal is to double the take-up of pre-accession funds to ensure development Boris Odorčić n order to improve the use of pre-accession funds, the Ministry of Regional Development has presented two new programmes with the support of the Croatian Bank for Reconstruction and Development (HBOR). The Programme for preparing and implementing development projects eligible for EU funding is designed to offer support to local and regional administrations, companies from under-developed areas in terms of present and future projects. The envisaged financial framework totals HRK30 million in non-refundable financing from the fund of the Ministry of Regional Development in 2012. Next year, however, this sum should be higher. The Loan Programme relates to the financing costs of implementing projects competing for cofunding from IPA elements (after joining the EU from structural
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and Cohesion funds) from all other areas of Croatia. The support includes loans by banks under favourable conditions and in agreed co-operation with HBOR. Branko Grčić, Government VicePresident and Minister of Regional Development and EU funds, points out the up-take of funds is not at an appropriate level in Croatia. At the end of 2011, only 37% of pre-accession IPA Programme funds had been used. Poland, for example, withdrew 70% from the structural funds. Therefore, our goal is to double the take-up of pre-accession funds and ensure Croatia’s development, he highlighted. He added that nonrefundable finance is a ‘gift’ at a time when it is difficult to obtain capital. Moreover, the ‘gift’ refers to financing of up to 75% of the total value of a project. The remaining 25% must be provided by the project holder. Since project holders often cannot obtain funding in Croatia, this is where the
Ministry comes in, securing 85% funding of the 25% share. The project holder would then cofinance only 15% of the share as a symbolic sum and proof of his intention to implement the project. Attractive interest rate HBOR Board President, Anton Kovačev, stated during the presentation of the programme there was no fear of a shortage of money. Every good and quality project will obtain financing for co-funding, he highlighted. Loan users of the second programme, in which HBOR participates, can be local and regional administrations. Followed by companies in state ownership or owned by local and regional administrations as well as other users meeting the criteria of the IPA Programme and the bank, with which HBOR will arrange co-operation. By the end of the year, the interest rate will be 3% for new investment in tourism, ag-
riculture, industry, environmental protection, energy efficiency and renewable energy resources. The interest rate for other projects will be 4% per year, he explained. The lowest amount of the loan is €10,700, with an unlimited upper level. Loans will be approved in kuna, without currency clause. Repayment deadline is 15 years, including a grace period of three years maximum. Actually, HBOR has already supported 25 of 44 approved projects with loans totalling €29.2 million or 68% of total investment value from the SAPARD Programme. Furthermore, it financed 67% of all projects approved from the IPARD Programme valued at €60.93 million. Amongst other HBOR activities regarding the take-up of pre-accession funds, Kovačev highlighted 24 issued compliances totalling €18.27 million to banks and their applying to tenders invited by local and regional administrations.
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Privredni vjesnik Year V No 0201
Zvonimir Križ, Board President, Agile Hrvatska
Agile development Individuals and interactions over processes and tools; working software over comprehensive documentation; customer collaboration over contract negotiation; responding to change over following a plan gile software development is a frequently-used term in IT circles when discussing project management, engineering practices or modern methods of company management. However, in addition to its huge popularity, a series of misconceptions also comes in the package of ‘agile development’. Agile development is not a specific project management methodology or engineering practice, but a series of principles on which individual methods and practices are based. These principles are defined by the Agile Manifesto, published by 17 experts in software development in 2001. The Manifesto consists of four values underlining the most important aspects: individuals and interactions over processes and tools; working software over comprehensive documentation; customer collaboration over contract negotiation; responding to change over following a plan. It is crucial to understand that agile development does not imply that values on the right side are irrelevant, and those on the left are more important. During the past 10 years, a series of methodologies and engineering practices has been developed based on the Agile Manifesto and related thinking. The best known are Scrum, Lean, Kanban and XP (Extreme Programming). Some of them overlap in content (for example Scrum and Kanban), and some complement each other (Scrum and XP). Agile development methods are easy to understand, but difficult to master. The
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( 90% discounts
available on group shopping portals
ONLINE SHOPPING
€1.3 million turnover of g 25 portals were involved in group shopping during mid-20 and April revenue of €0.5 million Goran Šikić he general public has become extremely cautious with their money during the fierce financial crisis and has been seized upon as an opportunity by group shopping portals. They have been inspired by Groupon, the American group shopping portal and thus offer vouchers for the purchase of a wide range of products, at discounts of up to 50% and sometimes 90%. The items on offer vary considerably, but are mainly short journeys, beauty parlour services and wellness programmes, as well as a large number of restaurants. In April “products” ranged from Kart racing, two nights accommodation with breakfast and an unlimited wellness programme, online English courses, bowling for six people, two nights accommodation with buffet breakfast, seven day sailing courses and tandem skydiving were amongst the top 10 generating the highest revenue.
T biggest challenge during the transition to agile development is the required change in organisation culture and the old ways of thinking. Fortunately, the results of the transition manifest themselves quickly so organisations encouraged by the results find it easier to persevere. Agile software development training usually consists of courses and conferences. Some courses exist in Croatia and abroad, and they are also designed to offer practical experience. Globally, agile development has become the dominant method of software development. Initial problems have been resolved. Of course, it is not perfect, but it does represent evolutionary progress in relation to more classical methods. Today, skills in agile development are considered an advantage; tomorrow they may be a condition of survival.
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
Further investment required According to a large number of “Groupon clones” that have appeared in Croatia during the past two years, this market niche has seen a remarkable boom. There were just 25 portals involved in group shopping during mid2011; currently that number has doubled. Many entrepreneurs have been attracted by the surprising number of online customers and the low initial investment needed to create a
shopping portal. Nevertheless, several shopping portals have ceased operating since it is not enough to start a functional shopping portal as a high level of funding is needed for the promotion of the portal product range, which needs to provide attractive prices and quality items continuously. In addition, high quality staff have a fundamental role of negotiating with service providers on the required number of attractive offers, where service providers need to inform the group shopping portal of their prices. Hence, addi-
www.privredni.hr Business & Finance Weekly
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( 40,055 itemms purchased in April
average monthly roup shopping portals
11 and now that number has doubled. The first and the largest portal is Kolektiva, with a market share of 42%,
tional investment is needed, as well as keeping up-to-date with some 50 fierce competitors on the market. Kolektiva, the first group shopping portal in Croatia, started in January 2010 and is currently market leader, with a market share of 42% and with revenue of €0.5 million in April 2012. It was founded by two enthusiasts, Jeffery Edward Treichel, an American from Chicago and Martina Usmiani, his Zagrebbased business partner, who decided to introduce the online group shopping business model.
Consequently, Kolektiva was one of the first group shopping portals in Europe. The initial concept was to extend operations throughout the region and branches were opened in five further countries – Slovenia, Serbia, Macedonia, Romania and Bulgaria. Kolektiva has been the largest regional company for group shopping since its inception. During the past two years, it has achieved high levels of voucher sales (in excess of 200,000) and it is planning to launch new projects before the summer.
Regulation lacking “Irrespective of the fact that over 50 portals offering group discounts have been launched in Croatia during the past two years, online group shopping market has not been appropriately regulated to date, which can cause problems for both clients and users. Nevertheless, Kolektiva has been operating at the highest level of business ethics and fair play, which has been recognised and appreciated by users. Its success is reflected by its remarkable business results”, pointed out Marina Đukanović, Director of Kolektiva. The fact that it was the first in Croatia has also contributed to its success. According to Marina Đukanović, the services provided by Kolektiva meet client needs, since clients themselves are also very well promoted towards their target market with ample purchasing power. The Director emphasised the company is planning to work harder on travel deals since 35,000 Croatians purchased holiday arrangements through Kolektiva last year. Short journeys accounted for over 75,000 overnight stays, with more than half being in Croatia. Kolektiva invests a large amount in the online promotion of its product range. “The promotion of the quality products of our business partners is our most effective advertising”, stated the Director. Online group shopping market is very dynamic and has seen growth trending upwards ir-
respective of the current crisis, since total monthly turnover has exceeded €1.3 million for the past two years and further growth is anticipated. Marketing investment necessary There are “aggregate portals” which bring together the full group shopping portal product range. There is also a portal called SveJeTu.hr, which uses codes from group shopping portal websites to collect data daily on turnover and thereby creates data on the overall group shopping market in Croatia. According to the latest data, average monthly revenue currently exceeds €1 million. 40,055 items were purchased through group shopping portals in April, the average discount being 59%, with the average price of purchased items being €27. In terms of revenue (April figures) the following data gives an indication of the most popular sites: Kolektiva (€0.46 million), KupiMe.hr (€0.17 million), Megapopust.hr (€130,000), Crnojaje.hr (€60,000), Povoljno. hr (€45,000), Ponudadana.hr (€37,300), Trebamto (€24,300) and Tidamtidam (€24,000). It is important to stress that Kolektiva communicates directly with clients via a newsletter and advertises its range on popular news portals. However, a large number of group shopping portals have seen stagnation. What is vital is for continuous investment into marketing.
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Privredni vjesnik Year V No 0201
( 45%
( over 100
Kraš products exported
products Halal certified
DAMIR BULIĆ, BOARD PRESIDENT, NT, KRAŠ Š
Brands and business excellence our competitive advantage Kraš competitiveness is based on innovative technology and a reputable image Krešimir Sočković raš is the regional leader in confectionery products, but will face rigorous competition with global food processing companies following Croatian EU accession. Privredni vjesnik talked with Damir Bulić, Board President, Kraš, on the current situation on the market and future plans for the company
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How competitive is Kraš compared with global food processing giants? The advantage of multinational companies is their exploitation of the economies of scale, whilst our competitiveness is based on the strength of our brands and business excellence, which have been achieved by systematic quality management and the implementation of best business practices in different operational areas. As a result, cuttingedge technology and a reputable customer image earned over decades are of fundamental importance to our competitiveness and our business results.
What is the current position of Kraš on both local and foreign markets? Kraš is the regional leader and several of our brands, such as Bajadera, Dorina, Životinjsko carstvo, Kiki and Domaćica, are ranked as “select” products on a par with the strongest regional brands. Such a leading market position can be maintained solely through continuous innovation and product development. Thus, our experts have b e e n worki n g contin-
Napolitanke as a market leader in wafer biscuits Kraš holds both Halal and Kosher certification. Is there unexplored potential in markets requiring such certification? Our products are present in many important global markets as a result of our ongoing efforts to meet the needs of specific markets. Kraš holds many certificates guoaranteeing controlled quality or specific production method, as is the case with Halal and Kosher certification. Currently, over 100 Kraš products are Halal certified, including Napolitanke wafer biscuits, which is a market leader in Saudi Arabia. uously on improving recipes, enhancing production processes, innovating in packaging and flavours, as well as up-todate presentation techniques and promotional methods. Kraš is an export-oriented company and it currently exports 45% of its products to regional markets, Western Europe, as well as to markets further abroad.
power. In addition to specific country problems, local food processing companies are faced with high production costs due to the high price of some raw materials and high selling expenses. Subsequently, Kraš has been investing in quality improvement and upgrading the sales of our latest and most innovative products.
What is the current situation in the confectionery sector in Croatia and regionally? The Croatian market has seen a continuous increase of imports of such products having a significantly higher growth rate compared with sales of local products. The share of imported products overall is 66%, which indicates the unfavourable position currently endured by domestic producers. Imports of low quality or those with a short shelf life are increasing and sold at more affordable prices to attract consumer interest against a backdrop of falling purchasing
What is the future for Kraš? We see Kraš as a stable company that is at the forefront of the confectionery industry in South-East Europe and with at least one global brand. Our core values - human assets, expertise, recipes and technology - are vital for our future development irrespective of the challenges. We are certain we will continue to provide customers with products matching their taste and meet their aspirations. In addition, we will continue cooperation with business partners, suppliers and distributors, as well as with all those involved in our business processes, in a responsible and reliable manner.
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( 12.6% increase ( €9.5 billion year-on-year
repaid by end 2012
CROATIAN NATIONAL BANK
Foreign reserves at €12.5 billion Increase in foreign reserves in April was mainly due to purchase and selling between central bank and central government post Eurobond issue ccording to the latest data provided by the Croatian National Bank, total Central Bank assets saw vigorous growth during April. By the end of that month total assets stood at €12.5 billion, with foreign reserves accounting for 99% of total assets. At that date foreign reserves stood at €12.5 billion, up 10.3% up in relation to March. Foreign reserves have increased 12.6% year-on-year. The increase in foreign reserves in April is primarily the result of purchase and selling between central bank and central government post Eurobond issue ($1.5 billion). According to RBA analysts, the purchase of foreign currency from the state following the
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issue of treasury shares amounting to €764 million in February greatly compensated for a reduction in foreign reserves as a result of three foreign currency interventions with a value of €458 million during the first two months of this year.
ties regarding the overall foreign debt. According to plans of the Croatian National Bank concerning the settlement of foreign debt by the end of 2012 (including the second quarter), the principal of €9.5 billion and interest of €904 million will be repaid. The level of foreign reserves at the end of April will settle overdue foreign liabilities in 2012 (the first quarter excluded). The current amount of foreign reserves is sufficient for the successful implementation of monetary policy and to maintain the stability of the EUR/HRK exchange rate according to RBA analysts. (V.A.)
Foreign liabilities settled In addition, according to the weekly data, the upward trend in foreign reserves continued at the beginning of May and stood at €13.9 billion on 11th May. The level of foreign reserves is primarily related to the value of imports (foreign reserves as months of imports) and to overdue short term liabili-
THE LUXOR COMPANY
Chocolate with olive oil Most popular are dark chocolates filled with cream of dried figs and Prosecco, lavender flavoured chocolate and chocolate with carob adalina spices have long been present in stores, and Luxor decided to expand into producing chocolates after 22 successful years, where it has become one of the most well-known trade marks. They will produce not just any kind of chocolate, but one labelled as Mediterranean Over several years, we have been developing new products according to personal recipes, trying to maintain originality. Currently, we offer around 100 spice products in almost every better-supplied chain store. When you ask why we decided to produce chocolate, we have to look back at the family history who have been active in the bakery business since my great-grandfather. It seems it is genetic to produce and not
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trade. Chocolate came as a challenge since I am addicted to it, and have considered independent production for a long time. Five years ago, when the spice business reached a gratifying level, I ventured into experimenting with chocolate with unusual flavours, remembers Director of Luxor, Marinko Biškić.
Unusual flavours The chocolate flavours can be certainly described as unusual. Lavender, dried fig, carob, Prosecco and olive oil are some of the flavours, and each chocolate has an extremely high level of cocoa (70%). Customer reactions have been more than good, and Biškić is satisfied with the sales
of the new products. The most popular are dark chocolate filled with cream made of dried figs and Prosecco, lavender-flavoured chocolate and chocolate with carob. Other chocolate products are equally in demand. For example, one of top sellers is a chocolate record with the song of Biškić’s band that can be played on an old record player. “I try to combine seemingly incompatible things in everything I do. That means globally and locally concerning the production of spices. Regarding chocolate, I tried to blend the flavours of high quality dark chocolate with Mediterranean delicacies and spices. Inventiveness is our main virtue, whilst financial indicators come second”, says Biškić.
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Privredni vjesnik Year V No 0201
CROATIAN FOREIGN CURRENCY MARKET Currency
AUD CAD JPY CHF GBP USD EUR Source: HNB
EUR
Kuna exchange mid-rate
7.58
5,885584 5,863243 7,566591 6,298986 9,423383 6,016104 7,568861
IGH equity capital increase The IGH Institute has increased its equity capital in accordance with the decision reached at the General Assembly meeting held on 26th April. The equity capital of the company saw an increase to €14.09 million in compliance with the ruling of the Commercial Court of Zagreb. Consequently, current equity stands at 264,170 shares. The company generated earnings of €10.7 million.
6.02
22.5.
23.5.
24.5.
CHF
4.31
7.57
5.99
4.30
7.56
5.96
4.29
7.55
5.93
4.28
7.54
5.90
4.27
7.53 21.5.
WEEK MAY 26, 2012
::: news
USD
25.5.
5.87 21.5.
22.5.
23.5.
24.5.
25.5.
4.26 21.5.
22.5.
23.5.
24.5.
25.5.
CROATIAN ENTREPRENEURS IN 2011
€0.96 billion nett profit €4.39 billion profit from 57,000 plus entrepreneurs but €3.4 billion losses from 41,300
Most entrepreneurs operating with positive results In 2011, 32,144 Zagreb-based entrepreneurs employing 339,072 staff, generated consolidated total revenues of €43.9 billion; total expenditure was €42.7 billion; profits after tax were €2.2 billion; losses after tax stood at €1.4 billion and nett profit amounted to €0.77 billion. 19,535 Zagreb-based entrepreneurs operated with positive results, with 12,609 (39.2%) operating at a loss in 2011, according to data provided by the Financial Agency. Numbers employed were 0.1% down with respect to 2010, although total revenue increased by 4.6% and total expenditure by 4.9%. Nevertheless, profitability after tax reduced by 3.8%, losses after tax by 5.9%, with nett profits remaining the same. Splitsko-Dalmatinska Bank in share buy-back On 24th May Splitsko-Dalmatinska Bank repurchased 200 of its shares (0.04% of equity capital). It repurchased the shares based on a purchase order at the Zagreb Stock Exchange by implementation of the Share Repurchase Programme at an average price of €10.8 per share. Splitsko-Dalmatinska Bank company equity currently stands at 22,045 being 4.67% of equity capital, according to the report from the Zagreb Stock Exchange.
ccording to data provided by the Financial Agency, Croatian entrepreneurs, (those required to pay profit tax), earned total revenues of €83.3 billion in 2011 of which €12.97 billion was from exports, 10.1% up over 2010. Imports totalled €12.66 billion giving a trade surplus of €0.31 billion. Nett profits were €0.96 billion compared with €0.31 billion in 2010. Overall, €4.39 billion in profits came from 57,000 plus entrepreneurs but
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€3.4 billion losses were shown by 41,300. Employment increasing During 2011, numbers employed showed a slight increase (0.9%), both total revenues and expenditure increased 5.8% compared with 2010. Profit tax paid jumped by 18.8% with losses just 1.3% up. The consolidated financial result for the year saw an overall improvement amounting to 210% over the previous year. However,
some €0.56 billion of this was the result of non-recurring revenue in the shipbuilding industry from expropriated property. Additionally, many entrepreneurs who showed losses in 2010 fell out of the data either as a result of stopping trading or by merging with other companies which showed positive results earlier. The average monthly nett salary in the private sector, excluding banks and insurance companies, was €630, a nominal increase of 0.9%. (V.A.)
www.privredni.hr Business & Finance Weekly
WE PRESENT 7
ANTIGRAFITI CENTAR, ZAGREB
MARAKOVIĆ, KARLOVAC
Clean and protected walls The company specialises in protection against graffiti, bacteria, asbestos and corrosion for ships, machines and buildings
Experts in plant and electro-installation reconstruction The company operates turn-key principles, offering technical solutions to complete execution, fitting, commissioning and training ppalled at the appearance of Zagreb façades daubed with graffiti, Hrvoje Delić and his business partner, Nikola Ančić, decided to establish Antigrafiti centar, specialising in cleaning and protecting city façades. The original idea gradually developed and today the company specialises in protection against graffiti, bacteria, asbestos and corrosion for vessels, machines and buildings. The secret to their success lies in special permanent coatings Easyon and Easy-off, produced by the English company, Urban Hygiene Ltd. and with a wide range of applications. It is very difficult to remove graffiti from unprotected surfaces. Before doing so, it is important to establish the colour and type of surface, and then choose the removal agent, all of which sometimes requires a small travelling
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Their products are universal, effective on all surfaces and multicoloured laboratory. Our products are universal, effective on all surfaces and are multi-coloured. Easy-on products are interesting since they are applied to clean surfaces, protecting them against potential graffiti: when “artists” realise the façade is coated with a protective
layer from which paint is easily removed, they lose interest since they want their ‘masterpiece’ to last, noted Delić. Difficult market breakthrough The coating creates an extremely hard and resistant film with a life-span of 20 years. It is ideal for old asbestos roofs, not yet in a state of disintegration, explains Delić. He complains their product has not been sufficiently recognised due to the crisis, even though it is far more cost-effective compared with other more frequently used materials. Tunnels have to be repainted with conventional paint every three years. They have to be washed even more often since cars emit oil and petrol particles that create a black film when combined with dust and humidity. In case of an accident or fire, this film burns, making the tunnel very dangerous. Our product is permeable to humidity, but resistant to smog and soot. Tunnels should be repainted every 20 years, and the emission from the detergent is significantly reduced, and this is very important since in these karstic areas water flows through the soil polluting drinking water, claims Nikola Ančić. As a sailing enthusiast, he also realised Easy-on products are ideal for protecting vessels since they are eco-friendly and prevent algae growth. (A.Š.)
araković d.o.o. is a family-owned company based in Karlovac. During its 26 years of operations it has developed two main activities – electro-installation work and wholesale and retail of electro-materials. It presently employs 14 staff. We do not employ many workers, but they are specific since they perform work that makes us a known name on the market. For many years now, we have been performing specialist work that does not require many staff but expertise and co-operation in demanding situations. Our main activity consists of specific industrial work, where we can offer help in the reconstruction of certain plants and our technical solutions based on the turnkey principle, which means we give technical solutions up to completion, fitting, commissioning and training, explains Vlado Maraković. He highlights that all staff are highly trained, from assemblers to licensed and state approved engineers who manage construction sites and who are top professionals in this area.
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Public lighting of Karlovac In addition to reconstruction as their speciality, Maraković also executes and maintains electric installations for all industrial, residential and business facilities as well as public lighting. The company also deals with
lighting-rod, telephone, antenna, sound systems and junction box installations as well as fitting and examining substations. The retailing and wholesaling of electro-materials account for 30%-40% of company business, making it unique in the wider Karlovac area. The market requires that the goods be supplied from abroad due to competitive prices and quality. Out electro-materials are supplied from west European
Our electro-material comes from west European countries countries. They are high quality, certified and with a warranty, says Maraković. He also points out the situation of small family-owned companies has been made difficult by large global players, and tenders for which they apply to have become more complex. For that reason the company introduced ISO 9001:2008 and ISO 14001:2004 standards to improve work and satisfy their demanding clients and buyers. This was recognised by the City of Karlovac that used their services for the public lighting project as well as Karlovačka industrija mlijeka (dairy factory) where they performed a complete plant reconstruction. (A.Š.)
8 ::: news Dividend payment from the Fund of Croatian Independence War Veterans A dividend payment for 2011 from the Fund of the Croatian Independence War Veterans and members of their families (HB Fund) is in progress. Total amount of the payment is €5.9 million. Dividend per individual share will be €2.71 and will be paid exclusively through FINA.
Privredni vjesnik Year V No 0201
Exhibition by the Association for Industrial Design
Panache and exuberance Young, less-established designers presenting their ideas with the opportunity to have their work confirmed and promoted
Salaries rise in March
After negative trends during the past months, nett and gross salaries increased in March. According to the latest data provided by the Central Bureau for Statistics, average nett salary totalled €733 in March, 2.5% up in relation to February. Average gross salary stood at €1,061 in March, 3.3% more in relation to February. On a monthly level, March increase in gross and nett salaries is in line with the decreased number of registered unemployed and an increase in demand for seasonal workers. However, the absence of real salary growth year-onyear reflects the continued negative trends on the labour market in relation to the last year and the rise in the level of prices. Brodomerkur income slightly increases
According to consolidated and unrevised financial data in 2011, Brodomerkur achieved total income of €0.14 billion, a slight increase in relation to 2010 when income totalled €0.13 billion. Total expenditure was slightly below €0.14 billion, which is also an insignificant increase in relation over 2010 when it totalled almost €0.13 billion. Pretax profit was €0.29 million according to data published on the website of the Zagreb Stock Exchange. After tax, their profit was €0.19 million last year.
Sanja Plješa n exhibition of the best work by the members of the Association for Industrial Design (ZzID), exhibited and promoted since the inception of the Association in 2009, has recently opened at the Centre for Design of the Croatian Chamber of Economy (HGK). The exhibition will be open until 29th June and it will include some already known work as well as new creative solutions from 16 local industrial designers. The Centre formed ZzID for Design of the Croatian Chamber of Economy and a group of designers in order to expand the creative network through membership of the Association, co-
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operation with economists, promotion of quality design, and its presentation to the public. “Over the past few years local designers have been presenting their creative solutions effectively at local and international exhibitions, as well as workshops and lectures on industrial design. The design of new Croatian furniture has seen remarkable success and been recognised at international fairs”, stated Luka Mjeda, Director of Centre for Design of the Croatian Chamber of Economy. Final products Mjeda pointed out the fact that Croatian industrial designers participated in Salone Internazionale del Mobile in Milan, one of the most important furniture fairs in the world, for the first time in April 2011. Some 20 Croatian designers presented their work at the fair, supported by the Ministry of Culture and the
Centre for Design of the Croatian Chamber of Economy (HGK). He added that the exhibition this year at the Centre for Design will include completed work, in order to make industrialists and producers recognise this work and push them to present their own end products. “It is important to highlight the élan of the designers against a backdrop of current arduous times which gives their work greater impact. Surprisingly, local designers operate in a similar manner to their international counterparts. Consequently, young, less-established designers need to present their ideas in their work and be given an opportunity to have it confirmed and promoted, as well as recognised by experts and the general public”, concluded Mjeda.