Business & Investment Slovenia 2014

An Insight into the Economy & Industry

2014

A Niche Opportunity in the Centre of Europe

>>CONTENTS SLOVENIA OVERVIEW

8 Overview | Slovenia: Facts & Figures 10 FDI Summit Slovenia 2014 | Less politics, more economy - growth 12 SPIRIT Slovenia | Slovenia keeps changing for the better

ORGANISATIONS

16 Slovenian Business Club | Where those who excel meet 17 Created in Slovenia

ECONOMY & FINANCE

20 Overview | Finally back to growth!

22 DUTB | Interview: Christopher Gwilliam, Executive Director, Bank Assets Management Company

• Great team with very bad assets 26 SSH | Slovenia Sovereign Holding 27 Deloitte | Slovenia is striving to be an attractive tax environment

CHAMBERS/ORGANISATIONS

28 German-Slovenian Chamber of Commerce | Innovation for a breakthrough 28 British-Slovenian Chamber of Commerce | Building a trade bridge between the countries 29 American Chamber of Commerce in Slovenia - AmCham Slovenia | The voice of the international business community 29 Advantage Austria | Helping to find business connections

INSTITUTES

30 Ypsilon Institute | Intergenerational solidarity and cooperation an investment possibility

TRANSPORT & LOGISTICS

32 Overview | The competition never sleeps 34 BTC Logistics Centre | Interview: Janko Pirkovič, Director, BTC Logistics Centre • Intermodal logistics terminal Ljubljana, redevelopment gate

AUTOMOTIVE

36 Overview | Unsung Heroes 38 Kolektor Group | Slovenia is fantastic for high-tech production 40 TAM DuraBus | Interview: Holger Postl, CEO of TAM DuraBus • Restarting a sleeping Slovenian beauty

ENERGY EFFICIENCY

42 Knauf Insulation | Innovative Slovenian solution for a better quality of life

MANUFACTURING

44 BSH Home Appliances | Interview: Boštjan Gorjup, Managing Director, BSH Home Appliances, Nazarje • Final decision is often by the women

START UP

46 Overview | New generation, new entrepreneurship 48 Go Opti – Vista TM | 400 places in Europe are big enough for our model

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BUSINESS SERVICES

50 AJPES | Interview: Mojca Kunšek, M.Sc., Director of the Agency of the Republic of Slovenia for Public Legal Records and Related Services (AJPES) • 10.9% of registered sole proprietors have an address abroad and 17.4% of registered companies have foreign owners 52 Sinet | Sinet – growing by giving back to society 54 Slovenian Convention Bureau | Slovenia – your green meeting destination

EDUCATION

56 Overview | Knowledge is the essence of progress 58 Faculty of Economics, University of Ljubljana | Interview: Samo Javornik, Ph.D., doctorate holder from the Faculty of Economics, University of Ljubljana • After my doctoral programme I… 60 IEDC-Bled School of Management | Interview: Professor Danica Purg, Presidentof IEDC-Bled School of Management • Excellent leaders are responsible for the society at large 62 The British International School of Ljubljana | To be the best possible

IT

64 SAP Slovenia | Simplify everything, so we can do anything

LIFESTYLE

66 Interview: Thierry Villard, former Managing Director of Goodyear Dunlop Central and Eastern Europe • Home away from home 68 Shining olympics for Slovenian sport… but how bright and for how long?

70 Slovenia’s biggest events 72 City Museum of Ljubljana | The Romans are coming to Ljubljana!

74 A country of many tastes

TOURISM

76 Overview | Record numbers in the maturing tourism industry 78 Air France Slovenia | Interview: Ildiko Kiss, Manager, Air France KLM • Right price for the right product for each customer 80 Terme Olimia | Dream of a revitalised life 82 Slovenia’s nature calls for action 84 Postojna Cave | Interview: Marjan Batagelj, CEO, Postojna Cave • Glorious history of the cave 86 Kempinski Palace Portorož | Kempinski Palace Portorož

REGIONS & CITY PROJECTS

88 Tridana | Interview: Marko Rant, Director, Tridana • Situla – metropolitan crossing for residents of the modern age 90 RDA Mura | Meeting investor needs • Success story reflected through FDI and awards 92 Development and Information centre Bela Krajina | Pokolpje - hand in hand with development • Offering a friendly environment for investors

USEFUL INFORMATION 94 Foreign Embassies (in Ljubljana) 95 Slovenian Embassies Abroad 96 Permanent Representations 96 Partners of the Publication

Photos: Marko Pentek

Published by The Slovenia Times Domus, d.o.o.

Dunajska 5 1000 Ljubljana, Slovenia T: +386 (0)1 520 50 84 F: +386 (0)1 520 50 82 info@sloveniatimes.com www.sloveniatimes.com CEO: Brane Krajnik Design & Layout: Marko Pentek, Medija grafično oblikovanje d.o.o.

Translation: Alkemist, prevajalske storitve d.o.o.

Proofreading: Louise Chatwood Marketing: Goran Mladenović, Brane Krajnik Printed by: SINET d.o.o.

For any other information please write an e-mail to marketing@sloveniatimes.com

The photos used on the cover for the purposes of photo montage:

by Shutterstock Business & Investment 2014

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The

Art

of progress

Porsche Slovenija d.o.o., BravniÄ?arjeva 5, Ljubljana

The new Audi A8.

*optional feature

Fuel consumption, combined: 9,1 - 5,9 l/100 km.

C02 emissions, combined: 213 - 155 g/km Emissions of ambient air pollutants from traffic significantly contribute to the deterioration of ambient air quality.

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The detailed environmental information on the new passenger cars can be found in the handbook of economical fuel consumption, CO2 emissions and emissions of ambient air pollutants. It is free of charge and available at the nearest point of sale and on the car manufacturer’s website.

The art of using smart headlights to assist the driver and make driving safer. Experience technology that intelligently illuminates what you need to see. While avoiding the glare of oncoming traffic and vehicles travelling ahead. The Audi Matrix LED headlights*, now in the new Audi A8.

Hidden Champions in CEE and Turkey: Carving a Global Niche I N T E R N AT I O N A L C O N F E R E N C E - V I E N N A , 2 2 M AY 2 0 1 4

5 LESSONS FROM OVER 100 HIDDEN CHAMPION COMPANIES IN 15 COUNTRIES Das They are the hidden champions of the 21stWU-Logo century, who: •

Hold leading positions in international niche markets

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Present interesting leadership stories

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Konferenzen und der Abbildung des Logos Jahren immer mit dem deutsch-englischen Zusatz Are companies whose success is drei based on working smart and hard tionalen auf Werbematerialien für Kooperationen benutzt, wenn „Wirtschaftsuniversität Wien Vienna University

Die Umsetzung „WU Vienna“ wird vor allem bei interna-

Das WU-Logo wird für eine Übergangsfrist von rund

eine Verortung der WU notwendig ist, das Logo mit Zusatz aber nicht lesbar oder zu klein sein könnte

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Nach dieser Phase wird ausschließlich das WU-Logo ohne Zusatz verwendet, da es bis dahin ausreichend etabliert sein sollte .

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In einer Turkey, Logoleiste darf daswell WU-Logo demmeet Zusatz and Join us to receive insights from the new book Hidden Champions in CEE and as asmitto Die minimale Größe auf Drucksorten beträgt 14 mm learn from the hidden champions and book contributors!

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14 mm

INTRODUCTION<<

Dear readers,

Brane Krajnik CEO The Slovenia Times

With the publication of our sixth annual business magazine, Business Investment Slovenia, Slovenia has found itself in the midst of a political crisis and without a government. We will have early voting that will engage political players during the next few months; but nevertheless the economy keeps working.

In recent years, the economic crisis has revealed a number of structural weaknesses in the Slovenian economy, in particular that GDP growth is too dependent on low-tech industries and traditional services which limits the competitiveness of the economy.

The development of high-tech companies, with high growth potential, is therefore an important form of restructuring needed for the Slovenian economy to become internationally competitive and it represents the greatest opportunity for future investment.

We wish to inform our readers that Slovenia is continuing with the privatisation of state assets – it is expected that in 2014 other companies will join Helios and Fotone which have been successfully sold, giving a clear message to international investors that they are welcome in Slovenia.

The constant search and enforcement of new business opportunities, the establishment of new firms and their development are the key to economic development. The fundamental driving force behind the entrepreneurial process is ambitious entrepreneurs who are willing and able to tackle the challenges of starting and expanding a business.

Slovenia is highly successful internationally – we present some success stories and draw attention to a new business initiative that is flourishing since its beginning earlier this year– the "Slovenian Business Club". Its core consists of the most prosperous Slovenian entrepreneurs, internationally successful exporters, who have developed their own business careers without the aid of policy. Learn about their plans and join them!

International research shows that Slovenia has very good human resources but is weak in the areas of economic investment, innovation and more specifically, in the start-up ecosystem.

In the last two years, many Slovenian start-up projects have been adopted by foreign business accelerators. Today, Slovenian companies are present in all the important accelerators globally. In 2013, Slovenian start-up companies won several high-profile start-up competitions.

Slovenian projects are also well presented on crowdfunding websites, particularly Kickstarter. As stated by Crowdfunding Slovenia (2013), based on the population, the Slovenian projects on Kickstarter are among the most successful in the world with more than 10 projects gathering over USD 1m.

You are invited to discover the most vital areas of Slovenia’s future, along with the greatest business opportunities.

"The Slovenia Times" team wishes you pleasant reading and to keep up to date with events and happenings in Slovenia then visit www.sloveniatimes.com For an in-depth analysis of the business and economic environment subscribe to our quarterly printed business magazine, The Slovenia Times. << Finally, this year our international business conference Foreign Direct Investment Summit Slovenia 2014 will be held on 17 September 2014 at the Faculty of Economics in Ljubljana.

For information about the summit please visit www.fdi.si Business & Investment 2014

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>>SLOVENIA OVERVIEW

Slovenia: Facts & Figures 400 km Radius • More than 45 million consumers • 11 countries, jointly representing more than 40% of the total GDP of the EU

Name: Republic of Slovenia Political system: Parliamentary democracy since 1991 International membership: Member of the EU; NATO; OECD Capital: Ljubljana Official language: Slovene with some border areas speaking Italian and Hungarian Currency: Euro International dialing code: +386 Internet address: .si

GEOGRAPHY

President of the Republic: H.E. Dr Borut Pahor (since December 2012)

Area: 20,273 km2

GDP: €17,128 (2013)

Length of borders: 1,370km

Average gross wage: €1,520.88 (February 2014)

POPULATION Number of inhabitants: 2,061,491 (May 2014) Population density: 99.1 inhabitants per km2 Nationalities (2002 census): Slovene 1,631,363; Hungarian 6,243; Italian 2,258; other 324,172 Religion: Roman Catholic 57.8%, Muslim 2.4%, Orthodox 2.3%, other Christian 0.9%, unaffiliated 3.5%, other or unspecified 23%, none 10.1% Main cities: Ljubljana (261,700), Maribor (108,600), Kranj (39,400), Celje (38,400)

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Time zone: GMT/UTC +1 Length of coastline: 46.6km Landscape: Alpine in the north, mediterranean in the south west, dinaric in the south and pannonian in the east Climate: Continental in central Slovenia, alpine in the north west and sub-mediterrenian along the coast and its hinterland Average temperature: January -2º°C; July +21°C Highest mountain: Triglav, 2,864 meters Longest river: Sava, 221km Largest lake: Cerknica, 26km2 Highest waterfall: Čedca, 130m Longest and deepest tourist krast cave: Postojnska jama, 19.5 km Protected natural park: Triglav National Park, 83,808 ha

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>>SLOVENIA OVERVIEW

FDI Summit Slovenia 2014:

Less Politics, More Economy - Growth The FDI Summit, in recent years, has addressed and highlighted many questions which could and should lead to the end of the prolonged recession in Slovenia. The main topics have been privatisation, corporate governance and a transparent business frameworkâ&#x20AC;Ś.. It seems that all those years and discussions have produced a single clear message: the main obstacle to growth and development is too much politics in every segment of the Slovenian economy.

By Tilen Majnardi, M.Sc.

Topic 3: Privatisation & improved management of state assets

FDI Summit 2014 Platform The programme for the FDI Summit Slovenia 2014 will be built from the conclusions of the 2013 Summit and the guidelines for decision makers. The programme will also be linked to the implementation of the measures presented by the government and the developing economic situation throughout 2014. An issue for Slovenia is whether the new political crisis, following the resignation of Prime Minister Alenka BratuĹĄek in April 2014 and the expected absence of an operational government until autumn 2014, will affect the already confirmed privatisation plans and cleaning process in the banking sector.

Topic 1: Further stabilisation of public finances Slovenia has definitely made huge progress in stabilising public finances in 2013 and 2014, but additional structural effort is expected in future years. The current budget deficit will be around 3% but Slovenia will have to produce continuous structural surpluses to lower public debt which jumped to around 80% as a result of excessive spending in recent years, the lack of structural reforms and in particular, the cleaning up of the banking sector in 2014.

Topic 2: Final stabilisation of the banking sector and deleveraging of the economy Slovenia finally started the cleaning process in the banking sector in 2013. The Bank Assets Management Company (BAMC) started to work and the transfer of EUR 3.5bn of toxic assets from the two biggest banks, NLB and NKBM, was finished in May 2014. Now the focus will shift to the day to day operations of the BAMC which represents a key institution for the deleveraging of the economy and finding new stable owners for companies in trouble.

The second focus will be on the restructuring of the banking sector which is expected to start normal lending activities following the clearing of their balance sheets by BAMC procedures.

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Business & Investment 2014

Slovenia started the privatisation process in 2013 and substantial progress was made at the beginning of 2014. The state defined 15 companies in which the privatisation process is in progress and some major companies such as Telekom Slovenije and Ljubljana Airport are expected to be privatised by the end of 2014. The key question will be whether the political crisis in mid-2014 will affect the speed of privatisation or whether the process will continue and end without the substantial influence of daily politics. After the formation of a new government at the end of 2014, a comprehensive strategy for further privatisation is expected.

An important issue for further improvement in corporate governance in state companies is that the State Holding, which was finally formed in April 2014, is not operational â&#x20AC;&#x201C; without credible leadership or a confirmed strategy for managing state assets. This will be a major task for the new government in 2015.

Topic 4: Attractive & stable business environment & effective promotion Substantial progress was also made in the field of an effective and functioning legal system during the last two years. Proceedings are faster, new insolvency legislation was adopted, red tape was cut, producing some results. However, big problems remain in effective spatial planning and in particular, the effective promotion of the country. The promotional agency, SPIRIT, formed in 2013, is in the process of constant restructuring and "political" reorganisation which has resulted in inefficient corporate and general promotion of the country and the economic and investment opportunities.

Topic 5: Political stability and defining a modern development strategy for the country The main task for Slovenian politicians will be to finally exit the main structures of the Slovenian economy, to find consensus around a clear and operational strategy for the mid to long term.

A more active role inside the EU and international organisations is necessary and expected. Just following the current global situation and blindly accepting everything from the EU and international levels will not allow Slovenia to reaffirm its position in the international community. <<

The FDI Summit Slovenia 2014 will take place on Wednesday, 17 September 2014 at the Faculty of Economics, University of Ljubljana.

17 September 2014 Faculty of Economics, University of Ljubljana, Slovenia

International platform for doing business in South East and Central Europe

The FDI (Foreign Direct Investment) Summit Slovenia 2014 is an executive-level business conference devoted to the investment environment and opportunities in Slovenia.

Being a business networking event, it is an outstanding opportunity to make new contacts with the leading business people in the region, top government officials, existing international investors in Slovenia and those interested in entering the Slovenian market and develop business in the wider region.

www.sloveniatimes.com

A Clear Vision for the Future

>>SLOVENIA OVERVIEW

Source: www.slovenia.info; Photo: Mirko Kunšič

Slovenia

keeps changing for the better Slovenia’s attractions for foreign investors include its position at the intersection of traditional trade routes, its well-developed physical and ITC infrastructure, its value chains, supplier networks and clusters… However, what matters most when a country is on track to excellence is its ability to evolve. The global economic crisis did not spare Slovenia but it is back to growth economically due to the quality, efficiency and responsiveness of its people.

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The country is beautiful and diverse - from the Alps to the Adriatic Sea there is much to see. The food and wine are exquisite, there are natural phenomena and historical places to visit which will satisfy even the most discerning visitors.

Source: www.slovenia.info; Photo: Dunja Wedam

It has been a winding road since the breakup of the former state, with a few rough patches and the heavy burden of the past. In the years following the outbreak of the 2008 crisis, critical vulnerabilities built up within Slovenia’s real sector and its financial system. After a rude awakening for many companies, the need for a strategic footprint, planning and structuring of operations to be able to adapt to the changing conditions and opportunities across the world has been translated into growing recognition of the importance of FDI and the government’s commitment to actively encourage inward investment.

However, Slovenia’s key selling points such as its well-developed infrastructure and supporting industries, its clusters of specialised suppliers and competitive overall supply chain costs, thanks to the country’s position at the centre of a market with 500 million customers, cannot beat the odds. Europe’s share of global FDI has fallen and although Slovenia has often demonstrated that it is successful and competitive, it has to work much harder to attract foreign investors and this is exactly what government officials and the investment promotional agency are doing - offering investment opportunities to foreign businesses in all sectors of Slovenia’s economy and looking for investors for state-owned assets such as the cargo port, motorways, the national airline, Ljubljana airport, telecoms, insurance companies and also opportunities in the retail sector. In addition to privatisation opportunities for investors, pharmaceutical and white goods firms, manufacturing industries, strategic

services, shared services centres, logistics and distribution centres, as well as R&D and the energy sector, particularly renewable energy, are opportunities not to be missed.

Another great opportunity for inward investment is tourism. The country is beautiful and diverse - from the Alps to the Adriatic Sea there is much to see. The food and wine are exquisite, there are natural phenomena and historical places to visit which will satisfy even the most discerning visitors. In the wake of the 2014 Winter Olympics, the overall interest in sport has surged after Slovenia won eight medals.

The Washington Post named Slovenia "a per-capita powerhouse of the Winter Olympics" and so it should not come as a surprise that sporting events are becoming a niche market for tourist resorts. Sporting events not only have a positive effects on the reputation of the resorts but also on revenue as earnings come not only from athletes and teams but also from their fans. Top level alpine skiing competitions, biathlon races and ski jumping attract crowds to Pohorje, Kranjska Gora, Pokljuka, Bled and Bohinj and attract recreational skiers, aspiring children and holidaymakers in general. Foreign investors are invited to Slovenia’s resorts that operate year-round and often boast excellent facilities for conventions and other business events. The Slovenian spas, built in the vicinity of thermal and mineral water springs with their wellness and sporting facilities, are the gems of the country’s hospitality industry, while many casinos, fun centres and arcades offer entertainment and gaming excitement.

Foreign visitors to Slovenia quickly notice that Slovenians have a passion for

life and for entrepreneurship. It’s no wonder that successful entrepreneurs think ahead and want to build an ecosystem that will allow them to live and work in such a special place, centrally located to serve east and south east Europe as well as Asia.

In conclusion, Slovenia is stealing some headlines not only in sport but also in the business world with a corporate income tax rate at 17%, HICP inflation of 0.9% and continuing growth in exports as the engine of the country’s economy. <<

SPIRIT Slovenia, Public Agency InvestSlovenia Team Verovškova 60, SI-1000 Ljubljana, Slovenia T: +386 (0) 1 5891 870 F: +386 (0) 1 5891 877 invest@spiritslovenia.si www.investslovenia.org

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Slovenia’s time-tested qualities make it a prime location for greenfield production, regional HQ, distribution and logistics centre or R&D facility.

We provide support for foreign investors looking to take advantage of the country’s strengths.

We continue to work with businesses under our aftercare programme to ensure your investment is a success.

PuBLIC AGEnCy OF THE REPuBLIC OF SLOVEnIA

More info on: www.investslovenia.org

REPUBLIC OF SLOVENIA MINISTRY OF ECONOMIC DEVELOPMENT AND TECHNOLOGY

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1 Seaway I Greenline 33, the world’s first serially produced hybrid yacht I www.seaway.si; 2 Pipistrel I Panthera, the first serially produced four-seat aeroplane with a modular choice of power train (piston, electric or hybrid) in the world I www.pipistrel.si; 3 Talking Friends I Talking Tom app. I www.outfit7.com; 4 Elan I Amphibio skis I www.elan.si; 5 Akrapovič I Slip-On Line exhaust system for Ferrari 458 Italia/458 Spider I www.akrapovic.com; 6 Gorenje I Oven interface I www.gorenje.si; 7 Lumar I Black Line Individual I www.lumar.si

Connect to Slovenian Business Excellence

Slovenia is a traditionally export-driven economy. The Slovenian education system meets the highest standards and produces a highly qualified and diverse workforce. Advanced technological solutions, ongoing investments in R&D, highest quality production processes, spirited innovation and widespread ecological awareness in the greenest of Europe’s natural environments are firmly integrated in the development and production strategies of an increasingly wide array of ambitious, forward-looking Slovenian companies.

If you are searching for a supplier or planning to set up or relocate an export business, choosing Slovenia could be the best decision you ever made.

Slovenia offers a supportive environment for emerging businesses looking to thrive internationally through its technically-savvy workforce and probusiness infrastructure. Slovenia’s appeal is not a low-cost manufacturing but the reputation of its technology- and innovation-driven industries.

Why not grow your business by taking advantage of Slovenia’s business potential and benefit from our services tailored to meet the needs of your company?

All our services are free of charge and include: • business specific information on industries, legislation, taxes and incentives, • data bases with investment projects and industrial sites, • information on Slovenian suppliers, • organization of fact-finding missions, • links with industry and local authorities, and • counselling and advice in practical matters.

Contact us: SPIRIT Slovenija - Public Agency of the Republic of Slovenia for the Promotion of Entrepreneurship, Innovation, Development, Investment and Tourism Verovškova 60 SI-1000 Ljubljana, Slovenia T: +386 1 5891 870 E: invest@spiritslovenia.si, slopartner@spiritslovenia.si

More info on: www.sloveniapartner.eu

PuBLIC AGEnCy OF THE REPuBLIC OF SLOVEnIA

Financed by the Ministry of Economic Development and Technology

Slovenia boasts a surprising number of internationally renowned brands like household appliances producer Gorenje, motor homes producer Adria Mobil, ski manufacturer Elan, and names like skier Tina Maze, philosopher Slavoj Žižek, composer and musician Slavko Avsenik and his Oberkrainer ensemble etc. Some of the world known products such as the 35 mm slide frame, the perfume atomizer, alpine carving skis, the first hybrid yacht and the best selling Talking Friends smart phone application were created in Slovenia.

>>ORGANISATIONS

Photo: Slovenian Business Club

Slovenian Business Club:

Where those who excel meet Founding of the Slovenian Business Club In January 2014, 36 entrepreneurs founded the Slovenian Business Club with the idea to seek new ways of thinking and acting, cooperate in foreign markets and form a communication strategy for the presentation of their collective views on the economic development of Slovenia. The founding members are individuals with positive values, work hard and honestly and began their entrepreneurial stories independently.

While others dream of what needs to be done, they actually do it every day. They are the driving force of Slovenian society, they provide new jobs and consequently satisfaction and prosperity to employees, their families and the broader society. The Slovenian Business Club helps members and others to penetrate foreign markets, search for new export routes, establish their products abroad whilst also helping foreign investors, represent their economic interests and simultaneously inspire young people to engage in entrepreneurship.

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Transparency and honesty are core values of the club and so the membership criteria are clear. All are entrepreneurs who began their business path independently, with their own ideas or as a successor of a family-owned company; they have a public image of honourable men who want to help pull Slovenia out of recession and through development of their business and products, determine the direction of Sloveniaâ&#x20AC;&#x2122;s economic, technological and social development They joined forces, ceased acting as individuals and combined the best of everyone. â&#x20AC;¨Individual activities naturally have a certain power, however not as great as combined power.

International exposure Club Members are committed to being available for and, depending on their time, help other members obtain information, expand their business and contact network primarily in the countries of their operation to facilitate easier and more favourable access to a specific market to other members that may need their support.

Members of the club also regularly connect with foreign investors. If foreign investors contact the club they will be connected with club members from the same or similar fields to that of the investor. Club members are well positioned in the Slovenian business environment and they know how to do business in Slovenia.

The Slovenian Business Club has open communication with diplomatic missions, business/bank clubs, chambers of the economy and specific companies abroad.

They also try to establish permanent relationships with as many clubs, chambers, diplomatic missions, companies and individuals as possible. www.SlovenianBusinessClub.si

Slovenian Business Club Dunajska cesta 119 1000 Ljubljana T: +386 (0)41 627 306 E: info@slovenianbusinessclub.si www.slovenianbusinessclub.si

All of them know what they want, they have a respectful attitude toward their companies, toward their workers. They know that without satisfied employees there is no successful company.

They are aware they need to invest in development. These are their strengths.

Q The Slovenian Business Club united the

Uroš Slak, Executive Director of the Slovenian Business Club

Created in Slovenia

By Polona Križnar

At the beginning of 2014, Uroš Slak, who was a TV host although a lawyer by education, united almost all the best entrepreneurs in the country and established the Slovenian Business Club.

"We assure you that our members are fair, they have a clean business record, they pay their contributions and taxes, they are respectful toward employees and they know extremely well how to navigate this small space," said Slak, Executive Director of the Club. We talked to him about their plans, their members, the role they would like to play in the Slovenian business environment, the support network and how they would like to welcome foreign investors.

best Slovenian entrepreneurs. What are the major advantages of this business club and what distinguishes you from others?

A Their major advantage is that the members are all owners. Some have succeeded because they had a good idea, others are successors of family businesses.

However, all of them behave responsibly toward their property. All these people are very innovative, they think about what kind of products the market needs, what they should offer to the market, how they should commercialise their products, what they need to do to improve their products.

In their respective niches, they want to be the best, these are people who take their jobs very seriously, their market is the world not only Slovenia. These are significant differences. When talking to our members, I always ask where they would like to do business, where they would like to expand their business and without hesitation they say - everywhere!

Of course, there are also some smaller companies who know the limit for their products, they are focused on neighbouring countries. All of them know what they want, they have a respectful attitude toward their companies, toward their workers. They know that without satisfied employees there is no successful company.

They are aware they need to invest in development. These are their strengths.

Q How important is courage for success?

Are your members brave enough for new business, do they often take risks?

A Courage is, of course, important but our members demonstrated courage long ago.

Most of the members of the Club are exporters, they export 80% to 90 % of their product. Years ago they realised the need to expand and they took the risk, with this there is no limit. Some of them recognised this during the recession but they had good products, a good brand and so they succeeded. But the manufacture of certain products is not enough for business development and success. Our members know that and so they develop their brand.

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>>ORGANISATIONS Slovenia has formed the core of healthy Slovenian entrepreneurship. The core of Slovenian entrepreneurs who are responsible, innovative, know what they want and how they want to develop their business. We have members who want to help each other. We would like to highlight that our success is good for each one of us.

It is important to say that large national enterprises will not lift Slovenia from the economic crisis. Unfortunately, stateowned enterprises are too often the target of political interests. People should know that in Slovenia there will be just as much money for public health or education if companies are successful. So we encourage young people to take a risk and become entrepreneurs.

Q You say that you also encourage all the successful entrepreneurs to help each other.

A Yes, we do that and the entrepreneurs

already help each other in Slovenia and abroad. Our Club is connected with similar clubs around the world, they have given us a lot of information about the opportunities that are available.

We organise meetings with other entrepreneurs, with politicians, with decision makers. Just recently we hosted a similar club from Ukraine and we are looking for joint projects. We have already talked with Spanish colleagues and we are now looking for connections in the Middle East. We are not interested in philosophy, we are only interested in concrete stories, concrete operations, the possibilities for integration, invitations, contacts, opportunities for our members.

We have two main aspects to our work. One is to tell people that in 20 years Slovenia has formed the core of healthy Slovenian entrepreneurship. The core of Q What do you expect from the government?

Slovenian entrepreneurs who A The government needs to take care and are responsible, innovative, listen to those who have developed their know what they want and how own products, who are successful without subsidies and are now among the best in they want to develop their the world. They should listen to Igor Akrapovič because the Akrapovič Group is business.

In addition to the individual brands of the members, the Club would also like to develop a special brand for all members, for their products. I am not talking just about the Made in Slovenia brand, after all it is not so important where the product is made but what is important is where the product is developed and designed, whose knowledge it is. So we think it could be marked as Created in Slovenia or Designed in Slovenia. We would like to emphasise the added value.

Q What are the benefits of being a Club member?

A We have two main aspects to our work.

One is to tell people that in 20 years 18

Business & Investment 2014

one of the world’s leading manufacturers of exhaust systems, employing 610 people.

They should talk to Joc Pečečnik whose Elektronček is one of the world’s leading producers of electro-mechanic and videoelectronic gaming devices, which outside Slovenian borders is known as Interblock.

They can ask for advice from Japec Jakopin, founder and owner of the very successful development-oriented Slovenian nautical company, Seaway, employing 300 people. Or Tatjana Skaza from Plastika Skaza, a development-oriented company working for famous multinational companies such as Ikea, Landis, Gorenje and employing more than 200 people.

I’ve mentioned just a few and if we want to have more of such entrepreneurs then the government needs to encourage new

businesses and they should create a normal business environment. Maybe they should determine a “social cap” so that, for example, the engineers who are driving development will not be overtaxed. Indeed, many of them now think about going to Austria or Germany because they would get there, for the same gross salary, a 40% higher net salary than in Slovenia. They just want a normal and competitive environment, that is all.

Q Let’s say I am an investor who wants to invest in Slovenia, how can you help me?

A We can connect you with our members.

We assure you that our members are fair and honest, they pay their contributions and taxes, they respect their employees and they know very well how to navigate this small space. All of them have globally successful products, they have the knowledge. We will connect you with them and you will automatically know that you have a credible interlocutor, an entrepreneur who is not bluffing and that’s important particularly for someone who doesn’t know the environment. We should not underestimate mutual trust, it is difficult to build and we take care of the first step. We have already received offers from abroad for cooperation with our excellent entrepreneurs. So, I would say to an investor, welcome and then help him to collect the information about Slovenia, what is going on here and explain the rules of the game, our legislation and of course, I would take care for the right contacts.

Q What are Slovenia’s advantages?

What would you expose?

A For investors, it is certainly an advantage that Slovenia is regulated by the state, a very safe country, and also importantly, it has a very good location.

Even the quality of life in Slovenia is very good. Many managers remain in Slovenia because of lifestyle and so for the economy one of the things we should definitely build is tourism. Here we have incredible opportunities and due to the geographical features we have many advantages. Just imagine, in May we can ski in the morning and in the afternoon we can catch the sun along the coast in Portorož. We have world gems such as Postojna Cave, we have coastline, mountains, karst, wellness tourism - the potential is amazing. <<

Slovenian Business Club Dunajska cesta 119 1000 Ljubljana T: +386 (0)41 627 306 E: info@slovenianbusinessclub.si www.slovenianbusinessclub.si

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>>ECONOMY & Finance

Bank of Slovenia; Photo: M. Pentek

Finally back to growth!

By Tilen Majnardi, M.Sc.

With reduced uncertainty in the international environment, Slovenian GDP is expected to increase by 0.5% - 0.7% this year, according to the most recent forecasts from the Bank of Slovenia and IMAD, as a consequence of solid growth in exports and a reduced decline in household consumption. The recovery in Slovenia’s main trading partners will accelerate in 2014 which will have a positive effect on export growth. The deterioration in the labour market is expected to be less intense which will, together with improved confidence among consumers, result in a substantially slower decline in private consumption. Government consumption will be affected by the ongoing fiscal consolidation.

Investment activity is not expected to grow in 2014 as sources of finance for the relatively highly indebted corporate sector will remain limited. Investment will remain around the same level as 2013 due to public investment financed by EU funds. The main risk to further stabilisation of Slovenia´s economy in 2014 is from a political crisis triggered by an internal dispute inside the ruling Positive Slovenia party.

Exports – engine of the slovenian economy Export growth will strengthen in 2014 due to an expected growth in merchandise exports with growth in service exports 20

Business & Investment 2014

remaining stable. According to IMAD (Institute of Macroeconomic Analysis and Development of the Republic of Slovenia), the acceleration in growth of merchandise exports will be underpinned by faster growth in the exports of Slovenia’s main trading partners in the EU in line with an

anticipated gradual recovery of their economic activity. Growth in extra EU exports, which have otherwise increased relatively more quickly in 2011 and 2012, will remain similar to that of last year and will continue to rely mainly on exports to Russia. Further growth is expected in export of technology intensive products, medical and pharmaceutical products in particular. Exports of road vehicles will also contribute to the expected strengthening in total exports. The movement of exports of lower technology intensive products will also be more favourable than in 2013. Exports related to the re-export of imported goods (particularly oil and oil derivatives, electricity, passenger cars) will also continue to grow. Growth in service exports will be similar to 2013 but the structure will be slightly different. Export of business services, particularly intermediation and other services related to trade and export of construction services, will experience slower growth, while export of transport and travel services will improve.

GDP growth is also projected at around 1.5% for 2015 and 2016. Compared with earlier projections, the upward revision for 2014 is the result of a faster recovery in foreign demand, easing of the situation in the domestic labour market at the turn of the year and also a slightly improved confidence in the economy. By the end of 2016, employment is projected to fall by 0.5% overall. As projected by the Central Bank, solid export growth supported by favourable foreign demand and further adjustments to labour costs, and lagging import growth as a result of the slow recovery in domestic demand could widen the current account surplus to more than 7% of GDP. In the absence of demand-side pressures and supply shocks, inflation is expected to remain low in the coming years. The main factors that could reduce economic growth relative to the baseline scenario are political instability and the lack of a comprehensive economic policy, possible additional fiscal consolidation measures and weaker foreign demand.

Boštjan Vasle: Slovenia’s economic competitiveness has improved recently which has enabled faster export growth.

Exports are forecast by IMAD to grow by 4.2% in 2014 and 4.8% in 2015, significantly up from the 2.9% growth registered in 2013.

Growth (% GDP) in Slovenia - 2014, 2015, 2016 are projections 8 7 6 5 4 3 2 1 0 -1 -2 -3 -4 -5 -6 -7 -8

7.0

3.4

-7.9

1.3

0.7

-2.5

-1.1

0.6

1.4

1.7

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Public finances – reduction in expenditure too slow?

In 2013, the situation in public finances in Slovenia was marked by a continuous decline in revenue and an increase in expenditure; ongoing fiscal consolidation and repair of bank balance sheets which will crucially impact the dynamics of economic activity in 2014 and the next two years. After a substantial decline in 2012, the general government deficit (excluding financial transactions associated with the repair of bank balance sheets) widened slightly in 2013 due to a decline in revenue and higher expenditure. To prevent a rapid deficit increase, additional measures were envisaged in the revised state budget, among which the increase in VAT rates had the largest effect on revenue. To reduce expenditure, an agreement on a further wage reduction and other labour-related costs in the public sector was reached. In line with the guidelines in the adopted budgets for 2014 and 2015 and the financial plans of the Pension and Disability Insurance Institute and Health Insurance Institute, the forecast assumes larger consolidation efforts in 2014 and 2015. According to those documents, consolidation in 2014 will be based on higher revenue, particularly as a consequence of the introduction of a new real estate tax (after the Constitutional Court ruling the faith of this law and additional revenues is unclear), the effect of 2013’s increase in VAT rates and measures to reduce the grey economy. On the expenditure side, it will rely on further cuts in employee compensation in the general government, a continuation of the social

Source: Bank of Slovenia

transfer policy from the previous year, and the streamlining of expenditure on goods and services and subsidies. General government expenditure will nevertheless continue to rise in nominal terms, mainly on the back of higher interest payments which are set to exceed 3% of GDP this year. The forecast also assumes a further increase in the absorption of EU funds.

Additionally, the government adopted, in April 2014, the National Reform Programme 2014-2015 which Slovenia needs to submit to the EU. The programme, which is mostly a continuation of existing reform efforts aimed at balancing the budget and kickstarting growth, will serve as a basis for the European Commission in issuing their recommendations. The programme preserves the medium-term budget objectives - a general government deficit of 3.2% of GDP in 2014 and 2.5% in 2015 excluding one-off expenditure. In the programme, the centrepiece is a 5% cut in the public sector wage bill coupled with an overall streamlining of the public sector and changes to the financing of the municipalities designed to encourage municipalities to merge. All these measures are, for now, not coordinated with the social partners, primarily the trade unions and so further tension connected with the implementation of the measures is very probable.

Growing competitiveness The competitiveness of the Slovenian economy improved in 2013 according to the most recent data from IMAD and indicated by the growth in Slovenia’s share in the global market of goods and a further

decline in unit labour costs. In 2008–2012, Slovenia’s share in the global goods market declined by 21.7%. In 2013 this trend started to reverse, according to their estimates given that the global market share was up 3.3% year-on-year in the first nine months. The increase was a result of market share growth in the 11 trading partners to which Slovenia exports 70% of total goods. It was recorded by the majority of the most important products for Slovenia’s exports. The cost competitiveness of the economy also improved in the same period due to a year-on-year decline in unit labour costs, the improvement being among the largest in the euro area. The relative position of Slovenia’s economy therefore improved for the third year in a row. The continuation of the positive trend in 2013 is expected in 2014.

Labour market – very slow improvement Unemployment will continue to hover at around 10% (ILO definition) while wages should rise in real terms given the low inflation which is projected at 0.5% in 2014 and rising to 1.3% by 2016. In 2013, the situation in the labour market worsened, the average number of registered unemployed rose to 119,800. As a result of the further contraction in the economy, the decline in employment deepened in 2014 (-2.0%). Employment fell in most private sector activities, the largest decline was once again recorded in the construction sector but for the first time on record, a yearly decline was also seen in the general government (-1.6%). Last year’s inflow into unemployment rose mainly due to a higher number of first-time jobseekers and those who lost work due to the termination of their fixed-term employment contracts.

Unemployment resulting from problems in business operations (bankruptcies, business reasons, compulsory settlements) was lower than in 2012.

The registered unemployment rate in Slovenia remained stable at 14.2% at the beginning of 2014, up from 13.6% a year ago, after which it had been decreasing until September 2013. It then started to increase again with the highest increase registered in December and January according to the Statistics Office. A total of 129,764 people were registered as unemployed with the Employment Service in February 2014. With slow growth in 2014, the situation is expected to stabilise and a new inflow of unemployed is not projected. A more substantial positive effect on employment could be registered in late 2015 and 2016 when the average number of unemployed is projected to be around 115,000. << Business & Investment 2014

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>>ECONOMY & FINANCE

Christopher Gwilliam, Executive Director, Bank Assets Management Company; Photos: Aljaž Hafner

Interview: Christopher Gwilliam, Executive Director, Bank Assets Management Company

Great team with very bad assets

By Tilen Majnardi, M.Sc.

Christopher Gwilliam took the job of executive director at the Bank Assets Management Company (BAMC) at the beginning of 2014. He joined the BAMC from Reverta, a Latvian company (formerly Parex Bank), one of the leading management companies for non-performing assets in the Baltic market, which he managed from 2010 to 2013. He has more than 30 years of experience in financial services of which more than 10 years were in the region of Central and Eastern Europe (Hungary, Croatia, Serbia, Macedonia and Romania). He is currently working hard to improve the image of BAMC and explain to the public that this is not a “bad bank” but is in fact the core restructuring institution of the Slovenian economy.

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Q The operations of BAMC represent one of the main pillars of the urgently needed deleveraging of the Slovenian economy. How would you assess the initial period of your work?

A To be perfectly honest, after four months, we are still learning and we are still receiving the assets from the banks.

There seems to be a lot of misunderstanding, by frankly almost everyone who was not involved, that on 22 December 2013 when the transfer of assets from the banks was formally made, that suddenly all those assets were immediately here in this room. Of course, when you transfer assets from a bank to somewhere else, to another bank or wherever, they don’t just magically appear overnight. It is not here is a file and you get it on the desk, it is in fact a huge pile of files, over 1700 files only from one bank, unfortunately sometimes they are even not in the right order. It is always a big task to find out exactly what you have got and it is even worse if you didn´t know what you were getting in the first place, which is the case here. We (BAMC) were not involved in selecting the transferred assets, we were not involved in defining how much we should pay for them, when they "arrived" we sort of blinked and said that there should be something else as well…. But we got what we got and now we will do what we can to deal with this in a proper, prudent and transparent manner. We are extremely busy. It is quite complicated because we are a new company and last year we were in constant stop/start mode, we didn´t even know if we would be operational or not. We could never actually hire anybody until the last minute when they (politicians and owners) suddenly said GO! When people ask "why we haven´t sold anything yet", the simple answer is that we haven´t actually completely got it yet, we have legally transferred assets but the actual transfer, the complete register, is not here as yet. But we are working hard on it.

Q Initially the institution faced huge negative publicity connected to the staffing and wages of the management. Why were you not able to start as transparently as possible?

Transparency and public image are crucial when you are spending taxpayer money?

A That certainly didn´t help. One of our principle tasks for this year is to have that view turned around and that we will have a more accommodating media perception.

There are several things that I should mention. Firstly transparency, we were always very transparent, everything was published where it should have been.

Again, one of the biggest problem is misconception about this business. It didn´t start on 20 March 2013, it was not

just a brand new company with everybody, every employee in place, with all the files neatly stored in folders, drawers etc. It didn´t start collecting anything until January this year. Most of the people were not there because of the previously mentioned stop/start mode, nobody was sure which way the company would go.

Also, as you also know, the government changed and it was not even clear if the company would happen in the first place. If you read the Measures of the Republic of Slovenia to Strengthen the Stability of Banks Act, the law that regulates the creation of BAMC, it leaves you to conclude that there is already an existing company in place that knows everything and can work and operate from day one but this was obviously not the case. Regarding transparency, I would describe the response, reception from some media, when I came here as grossly unfair.

Fortunately I have been in similar positions before, including my last job where almost exactly the same thing went on. You can tell by the questions that are being asked by some journalists that sometimes they are driven by directly and deliberately focused people from somewhere "behind" with their particular interests. Actually, when I came here, I came with a bright, fresh feeling, Slovenia is beautiful country, I can see Alps with the snow on the top from my office. So my perception was that I was coming to a green, bright, modern, tidy, neat, forwardlooking country and then I discovered the reality. Of course, Slovenia has all the above-mentioned things but has also has been very introspective in recent years and is now paying the price.

When people ask “why we haven´t sold anything yet”, the simple answer is that we haven´t actually completely got it yet, we have legally transferred assets but the actual transfer, the complete register, is not here as yet.

Q What are the biggest obstacles to your daily operations? Do you need any additional or revised legislative background?

A There are some inconsistencies still, apart from the misperception that we were an existing company and from day one we were ready to go. I came here on the basis that this was basically an asset management company with its main role to collect back the money for the taxpayers but as to the level of restructuring required in terms of volume and values it was not clear until I got here. That did surprise me a little. I expected much more harmonised individual assets rather than this extraordinary group of companies with totally mismatched businesses. But we are working on the restructuring to obtain the optimum value which will then realise the best cash for the state. I definitely think that the Slovenian economy can rise again because it has many good operating companies, especially in the export sphere, but the problem is that they have been extremely overleveraged in the past.

What makes people think that just because assets come from a bank, where they were "bad", to us that they are suddenly brilliantly shiny and we can sell them at four or five times the value.

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>>ECONOMY & FINANCE realistically define what it is that we have and where we can put it. For example, we don´t want to sell assets with a greater discount than necessary. One of the purposes of BAMC is not to have fire sales and therefore you don´t want to have a time limit if you can avoid it because potential buyers, vultures funds, will know what the time limit is and they will just wait until the very end. Here we have the way out which was not available in my last job, any remaining assets will be transferred to the State Sovereign Holding, so the vultures can´t just wait to the end and “dive in”.

Q How you will explain to the public that

Christopher Gwilliam, Executive Director, Bank Assets Management Company; Photos: Aljaž Hafner

Q So your spectrum of work is definitely much broader than just collecting the money back for taxpayers, you are in fact the “central state restructuring agency”. Is it fair to say that the general public are not aware of this and that their expectations are incorrect?

Definitely we are not just collecting. This is one piece of unfortunate fiction in the public sphere. When you have the type of assets we have, just to hold them and not lose any more is a big return. Many of the assets are really nasty, smelly, horrible, non-performing assets and I´m not talking just about the claims, loans but also supporting security, collateral etc. Think of incomplete factory premises in the middle of nowhere where there is no chance for some business to move there in the near future. What can you do with that?

Probably the best thing to do is to reconvert the thing to agricultural land, raise maize on it or something similar. That kind of analysis we do every day and even if we drop a little in value that´s actually a gain. So, I think that people should not be too surprised to find that there will be losses. It is in fact extraordinary, people are individuals, they buy flats, rent apartments, buy cars, consumable goods and they know that they deteriorate over time, especially if they are not well looked

Even somebody from prison commented recently, for goodness sake, he is the part of the problem that has caused this.

24

Business & Investment 2014

after. Why think that with bank assets it is any different?

Q Are you satisfied with the cooperation of other institutions, commercial banks in your operations?

A We, in fact, have very good collaboration with our partners, for example NKBM and NLB banks. We are struggling with some poor back office management in the past but this is not necessarily a criticism of the existing or previous management. It is quite an extraordinary situation here in Slovenia, to me it´s quite different from the environment that I have worked in before.

Because the money in the past was "easy to get", the administration was a little slack.

We are seeing this now from both sides and trying to do our best to make the flow of information more rapid and efficient (between the Ministry of Finance and the Bank of Slovenia).

Q What percentage of your portfolio of transferred bad loans will you clear by the end of 2014 and when do you expect the greatest operational intensity?

A A lot of people expect that we will solve the problems in five minutes. Of course that is not the case. As I mentioned, we lost a year at the beginning and because we were not involved in defining the assets to be transferred, in pricing, we are in fact still learning and therefore losing another six months. Unless there is a massive change in the Slovenian economy, the European economy and the global economy, we cannot expect huge gains over the next three and half years. I don’t think we will properly see the real value within the first two years of BAMC operations. We must first stabilise, rationalise and

you are in fact not a “bad bank” which will fix the problems that all Slovenians banks were not able to in the last 10 years, that you are in fact a restructuring and deleveraging institution?

A This I find extremely extraordinary, you have a bright and well educated population in this country but the perception about our institution seems to be so badly off the mark. If this was that easy, what stopped the banks doing it in the past? What makes people think that just because assets come from a bank, where they were "bad", to us that they are suddenly brilliantly shiny and we can sell them at four or five times the value. People also say that we got them cheaply! Well, firstly, we don´t even know what the pricing was and so we have no idea. So, how would somebody from outside know that we got them cheaply? Even somebody from prison commented recently, for goodness sake, he is the part of the problem that has caused this. Frankly, we really don´t know what the real prices are.

Q Finally, will you be influenced by the current political instability in Slovenia or can you easily perform and work as planned until a stable government will be formed, probably sometime in autumn 2014?

A There is no reason why we should need politics in the pure sense of policy terms.

We know what our job is, we have an excellent team and we have some very bad assets to deal with. Excellent assistance from outside consultants was necessary because there was just nobody here to deal with these things. We don´t need political advice because we deal with the economy and the market. Of course, we have to have guidance in respect of the legal aspects of our business and we have a shareholder which is the state. I think that the state can be apolitical when it is dealing with us. I hope that the state will not try to impose any political influence on us because, in fact, they set us up not to be influenced by politics. The only involvement by politicians should be from an administrative point of view, not from the left, right or centre in terms of daily policy. <<

>>ECONOMY & FINANCE

Slovenia Sovereign Holding Slovenska odškodninska družba, d.d (SOD) was established, following Slovenia‘s independence in 1991, to manage the denationalisation of state assets. Today, SOD has been transformed into Slovenia‘s Sovereign Holding (SSH) company tasked with finding potential buyers/investors to purchase the state's key ownership stakes in a range of companies from airlines to bakers and banks and thus finalise the privatisation process.

 Information regarding the companies,

ownership stakes available and the sales process can be found at: http://www.so-druzba.si/en-us/privatization or email: infosodruzba@so-druzba.si with queries or for a copy of Privatization in Slovenia –Investment Opportunities, a brochure which has been developed by SOD for foreign professional investors.

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Business & Investment 2014

SOD have published several factors which make Slovenia interesting for investors and companies seeking to expand into the region. They include: • Current account surplus; • Slovenia is an export oriented economy with the EU accounting for 69.1% of exports. The main export partners are the neighbouring countries of Germany (20%), Italy (12%), Austria (8%), Croatia (6%), France (5%), Russia (5%); • As part of the former Yugoslavia, Slovenian companies have a strong brand in the Western Balkans and are among the largest investors in the individual countries, with considerable knowledge about the region, the

economies, the languages and thus is an ideal first stepping stone for expansion; • The government has made progress with labour and pension reform which was passed in 2012 and also introduced the golden fiscal law into the constitution in 2013; • The banking sector is relatively small with regard to GDP and debt to GDP is low relative to other eurozone countries.

Of the initial 15 companies listed for sale in July 2013, seven are listed companies, two transactions have been closed (Fotona, Helios Domžale), leaving 13 companies seeking expressions of interest. These are:

Company

Sector

Adria Airways Tehnika d.d

Airline Servicing

Adria Airways d.d.

Airline

Aero Celje d.d.

Chemicals - Adhesives & Coatings

Aerodrom Ljubljana d.d.

Airport

Cinkarna Celje d.d.

Chemicals Processing

Elan d.o.o.

Manufacturing – Sporting Equipment

Gospodarsko razstavišče

Event Management

Nova KBM

Banking

Paloma d.d.

Household & Personal Products

Telekom Slovenije d.d.

Telecommunications

Terme Olimia Bazen d.d.

Hotels,Restaurants & Leisure – Wellness

Unior d.d.

Metal Processing

Žito d.d.

Food & Staples

Slovenia is striving to be an attractive tax environment

Slovenia presents an interesting investment opportunity - it has a great strategic location, the country lies in the middle of one of the world’s most exciting business regions and it connects several of Europe’s historical crossroads. As such it is heavily connected to the EU business network. The country has a well educated labour force and is trying to systematically eliminate administrative obstacles relating to business and investment. The attractiveness of the business environment is deeply affected by the tax environment of the country. In the last few years there have been some changes to the tax legislation with the aim of improving the competitive advantage of Slovenia and to boost production activities.

Corporate tax Currently resident companies are taxed on worldwide income whereas non-resident companies are taxed only on Slovenian sourced income. Taxable income comprises all income and profits from a company’s activities, reduced by expenses related to those activities. Taxpayers whose revenue in the previous year does not exceed EUR50,000 can elect to take a lump sum deduction (equal to 70% of annual revenue) for expenses. The corporate income tax rate is set at 17% and should remain at this level. In comparison to the rates in some neighbouring countries, the tax rate is still amongst the lowest in the EU. Dividends are exempt if received from another Slovene company, an EU subsidiary or a non-EU subsidiary established in a country not included on the blacklist published by the Ministry of Finance. There is the possibility to carry forward tax losses for which no time restriction applies. Tax losses from previous years may be used to decrease the tax base by up to 50% of the tax base. Quite favourable are different incentives which have been improved in the last year and include a deduction of 100% of the amount invested in domestic R&D activities and the purchase of R&D services; a 40% deduction of the actual amount invested in equipment and intangible assets up to the amount of the tax base; relief for donations is limited to 0.3% of taxable income and an additional 0.2% for special purposes; relief for voluntary supplementary pension insurance is limited to 24% of obligatory contributions for pension and disability insurance; relief for employment of the disabled is 50% of the salary the individual (70% of the salary for fully physically disabled and deaf individuals); and relief for employment of unemployed persons

younger than 26 or older than 55 who were registered as unemployed at the Employment Office of Slovenia for at least six months (45% of the salary for the first 24 months of employment).

Dividends, interests and royalties paid to a non-resident are subject to a 15% withholding tax unless the rate is reduced under a tax treaty or exempt under the EU parent-subsidiary directive or EU interest and royalties directive which are both fully incorporated in Slovene law. Currently Slovenia has concluded over 55 tax treaty agreements with different countries.

Technical service fees e.g. fees paid for advisory, marketing, market analysis, HR, administrative, IT and legal services are subject to a 15% withholding tax if made to persons with a head office outside the EU and the country is on the list published by the Ministry of Finance.

Capital gains are treated as ordinary income, although gains arising from a transaction subject to the EU merger directive are exempt. An exemption of 50% of gains derived from the sale of shares is available if, inter alia, the shares represent a participation of at least 8% and the shareholding has been held for more than six months and at least one person is employed on a full-time basis during this period. 50% of a capital loss is not recognised (unless the loss arises from a venture capital investment).

Personal tax Personal income tax is levied on six categories of income: income from employment, business income, income from basic agriculture and forestry, income from rents and royalties, income from capital (dividends, interest and capital gains) and other income. The taxable base of the various sources of income earned in

a calendar year are computed separately and then aggregated and taxed at progressive rates. Income from capital, however, is subject to “schedule ” taxation.

Resident individuals are taxed on worldwide income whereas non-residents are taxed only on Slovenian sourced income. The following progressive rates apply: 16% up to EUR 8,021.34; 27% up to EUR 18,960.28; 41% up to EUR 70,907.20; and 50% on amounts exceeding EUR 70,907.20. Dividend, interest and rental income received by a resident individual are subject to a 25% withholding tax. Income from business activities is subject to a 20% rate. Social security contributions must be made on income from employment. The rate for the employee is 22.1% (on the gross amount) and 16.1% for the employer (on the gross income).

In these times the most favourable government vehicle for collection of additional budget revenues is Value Added Taxation. Slovenia was not exempt and thus increased its rates in 2013. The new standard rate is 22%; while a reduced rate, which applies to specified goods and services, is 9.5%. Compared to the neighbouring countries, it can be concluded that the rates are still around the lowest in the EU with the highest rate in Hungary of 27%. << Alenka Gorenčič, Manager, Tax Consultancy Department

Dunajska cesta 165 1000 Ljubljana, Slovenija T: +386 (0)1 307 28 00 F: +386 (0)1 307 29 00 E: cesiinfo@deloittece.com www.deloitte.si

Business & Investment 2014

27

>>CHAMBERS/ORGANISATIONS German-Slovenian Chamber of Commerce:

Innovation for a breakthrough AHK Slovenia belongs to the worldwide network of German chambers represented in 125 locations in 85 countries.

In addition to officially representing German industry and commerce, the Chamber which is a member based organisation, provides services to companies. The Chambers are the key

partner of the Federal German Ministry for Economics and Technology and officially represent the interests of German industry, commerce and its members.

This years programme of activities for the German-Slovene Chamber of Commerce are built around the motto Innovation for a breakthrough. Using knowledge to stimulate innovation and thereby create a sustainable economic performance is extremely challenging, especially in the area of ​​the Economy. It is important to understand how to integrate acquired knowledge with innovation. This link is seen as an important and promising way to strengthen German-Slovene economy.

Through their events, seminars and workshops they provide opportunities to enter the market and advise and assist the members in the processes for development and change by professionals.

We are committed to development of cross-border cooperation, to extend services for import and export companies, exchange of business contacts and various market opportunities for innovation and further education.

Slovenia is among the top six countries for investment Every year the German-Slovene Chamber of Commerce conducts research, collecting data from companies with German capital in Slovenia as well as participating in research undertaken by German Chambers in CEE countries and their members.

According to this research, Slovenia is among the TOP 6 countries in CEE when rating the investment attraction. Since the research has been undertaken, Slovenia’s

advantages are: the qualification of employees; productivity and motivation of employees; academic education; quality and availability of suppliers; availability of skilled workers and infrastructure. These are the

main strengths representing the basis of attraction for investors. <<

Deutsch-Slowenische Industrieund Handelskammer Poljanski nasip 6 SI-1000 Ljubljana T: +386 (0)1 252 88 60 E: ahk@ahkslo.si www.dihk.si

British-Slovenian Chamber of Commerce:

Building a trade bridge between the countries At the beginning of the year, the BritishSlovenian Chamber of Commerce in cooperation with UKTI Slovenia, established the British Business Centre.

The objective of this initiative is to build a trade bridge, which is a great challenge but also a great opportunity, for flexible import or export orientated SMEs. Through the BSCC networks in the UK, companies can reach potential counterparts. We have a common goal – to find a new business partner, to expand trade and to help identify the correct targets for the most wanted – business win.

Technology and Advanced Engineering.

In July we will take another group of 10 interested SMEs to an automotive, composite science workshop in Hungary. In addition, there are also sector development funds available to support UK companies landing in Slovenia and to organise international workshops and/or events. <<

Support UK companies for a soft landing

We will participate in the International Festival for Business 2014 in Liverpool.

0n 10-11 June, 2014 there will be an International Trade Expo. We will take a delegation of 20 SMEs executives and enable them B2B active networking. The theme is Manufacturing, Science and 28

Business & Investment 2014

British-Slovenian Chamber of Commerce Trg Republike 3 SI-1000 Ljubljana E: aleksandra.baric@bscc.si www.bscc.si

American Chamber of Commerce in Slovenia - AmCham Slovenia:

The voice of the international business community AmCham Slovenia is today one of the most active and influential international business communities in Slovenia with more than 260 corporate members.

We inspire confidence in a number of the largest and the most important companies in Slovenia. In 2014, AmCham celebrates 15 years of successful work in Slovenia.

We are glad and proud that every year we have more members, among them - as our recent research has shown - as many as 91% are very satisfied with their membership in AmCham Slovenia. It gives yet another reason and the motivation for many new successful stories. Our long term goal is to improve investment opportunities and the business environment in Slovenia, so that the conduct of business will be easier for Slovenian, international, and US companies. We believe that it would lead to an increase in the standard of living of all

Slovenian citizens. We are working towards building an incentive-rich business climate, our competitive position, international trade, cooperation in development and investments, and a transparent and ethical business environment.

Perfect geostrategic location Slovenia is a country with great potential.

It is at the crossroads of the main European cultural and trade routes, it has a perfect geostrategic location. Due to good infrastructure it offers quick access to all European markets. Slovenia is a traditionally export-driven economy with a highly qualified and diverse workforce with a great knowledge of languages, advanced technology solutions, R&D and the highest quality production processes. The quality of life is high in this the greenest of Europe’s natural environments. There are numerous advantages, but one just must see it to feel it - as you know the official slogan of Slovenia is I feel sLOVEnia. <<

American Chamber of Commerce in Slovenia AmCham Slovenia Dunajska cesta 156 SI-1000 Ljubljana T: +386 8 205 13 51 E: office@amcham.si www.amcham.si

Advantage Austria:

Helping to find business connections ADVANTAGE AUSTRIA is the official

Austrian Foreign Trade Promotion Organisation and the largest provider of services in the area of foreign trade. With a network of more than 110 offices in over 70 countries, ADVANTAGE AUSTRIA is uniquely positioned to consult and guide Austrian enterprises worldwide.

ADVANTAGE AUSTRIA Ljubljana was founded in 1991. The main goal of our office is to help Austrian companies to find new contacts and strengthen existing business connections. In this way we put sellers in contact with potential agents, importers and prospective partners. We also obtain credit ratings and assist with trade names and patent registration, we publish trade newsletters and brochures and promote export opportunities for Austrian companies.

ADVANTAGE AUSTRIA Ljubljana is also in charge of Albania and Kosovo. In all, we will organise more than 35 events in these three markets this year. The main market is, of course, Slovenia covering more than

90% of Austrian foreign trade and more than 80% of all investment in these markets. Austria is not only by far the biggest investor in Slovenia but also among the top three trading partners. In 2014 we plan to organise 19 events in Slovenia with the main focus on tourism infrastructure, construction and GreenTech. In autumn we will organise the second meeting of Slovenian commercial agents with Austrian companies, which created a lot of interest and positive feedback in 2013.

Highly motivated labour force Austrian companies are satisfied with the Slovenian labour force, with their education and their high level of motivation. They are also satisfied with the transparency of public procurement. On the other side they are less satisfied with the Slovenian tax system, the tax burden, the fight against corruption and the solvency of their business partners (payment periods). <<

Avstrijsko Veleposlaništvo Gospodarski oddelek Nazorjeva 6, p.p. 1595 SI-1000 Ljubljana T: +386 (0)1 513 97 70 E: laibach@advantageaustria.org www.advantageaustria.org/si

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>>INSTITUTES

Intergenerational solidarity and cooperation an investment possibility Ypsilon Institute is a private, non-government organisation responsible for and involved in many projects and initiatives that mainly focus on intergenerational solidarity and cooperation. They try to connect many different generations in order to advance the knowledge and wellbeing of all.

Simbioza (Symbiosis) started in 2010 as an all Slovenian volunteer project for teaching computer skills to the elderly, connecting both the Slovenian public and private sectors. It soon became clear that the idea of Simbioza went beyond Slovenian borders, winning several awards and thus being recognised at the European and the global level. Then in 2013, the creators of Simbioza decided to expand the idea of social responsibility and the concept of solidarity among generations to a wider platform.

Simbioza grew and became a group of several sustainable projects â&#x20AC;&#x201C; Simbioza Schools, Simbioza Masters, Simbioza Consortium, Simbioza Club and "On Triglav to change the world! Simbioza intergenerational centre". The latter

emerged from the idea that it is crucial to offer a common place for all generations in which the transfer of knowledge, socialising and intergenerational integration is an everyday event. The centre connects the business sector, government and non-government organisations and individuals in interactive programmes appropriate for people of all ages. With a 30

Business & Investment 2014

wide spectrum of activities and participants in the On Triglav to change the world! Simbioza intergenerational centre offers a great opportunity for cooperation and investment for companies wishing to append social responsibility to their mission.

Furthermore, the Simbioza Consortium represents a project full of possibilities for individuals as well as organisations and companies. It is based on the fact that intergenerational cooperation will become the toughest issue to overcome in the future - especially in the business sector. Through successful networking, companies, the academic sphere and organisations specialising in intergenerational cooperation created a consortium which will contribute to a better understanding of generations, relations among them and development of innovative means for promotion of intergenerational solidarity in companies. The intergenerational component in Slovenian companies will thus become a major competitive advantage and companies themselves will perfect the model for business players all over the world.

In the end it is important to say that the vast majority of Ypsilon membership comprises young entrepreneurs that wish to educate, connect and prove themselves in the business world. Therefore, at the Ypsilon Institute, they try to meet the needs of the members through Y.biz dinners which are an opportunity for young people to meet interesting and experienced people who have achieved great things in their lives and careers.

These are successful business people, managers and ambassadors living in Slovenia. Through an informal setting over a pleasant meal, they all have an opportunity to ask the questions that need to be answered. <<

Zavod Ypsilon Mirje 15 1000 Ljubljana, Slovenia T: +386 (05)1 600 340 E: info@ypsilon.si www. ypsilon.si

>>TRANSPORT & LOGISTICS

Photos by Shutterstock

The competition

never sleeps

By Simon Demšar

In primary school we were told that “Slovenia is at the crossroads of different cultures and a bridge between the east and the west”.

This should make it perfectly suited to become a logistics hub but nothing should be taken for granted.

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Due to globalisation and increasing international trade, logistics has been an interesting topic for at least two decades.

The Port of Koper and Ljubljana Airport have often been mentioned as two bases but specialisation also means the option of several “tailor-made” distribution centres instead of one or two major ones.

Slovenia competes with distribution centres in Graz and Villach in Austria and Zagreb in Croatia where the development is coordinated with the strategy of their national traffic infrastructure. In Slovenia, there is space for a large regional distribution centre in Ljubljana and a small one in Koper. Aside from the logistic centres themselves, the most important issue is the building of a second rail track between Koper and Divača. The Port of Koper has proved to be successful in the company of the neighbouring Rijeka and Trieste ports but the planned railway, 27 kilometres in length, is crucial for its further development. When the biggest ever cargo ship, carrying over 200,000 tons of iron ore for an Austrian partner anchored in Koper at the beginning of May it was both a triumph and a warning for the authorities, as 60% of all cargo arrives and leaves the port by train. Investing in transport and logistics infrastructure is of strategic importance for the development of Slovenia. It is also an opportunity to strengthen cooperation with the countries

of Central and Eastern Europe which represent Sloveniaâ&#x20AC;&#x2122;s key markets. Other priorities include upgrading the railway toward Hungary for higher speeds and higher axle loads, as well as building a second tube in the Karavanke tunnel and improving some motorway sections.

Opportunities for new logistic centres, of course, depend also on the development of the economy and companies using the centres. Logistics companies locate the centres by defining the so-called gravity point which depends on the relationship between production and the end user.

Whether Slovenia will become a gravity point therefore depends on general development. Some experts believe that due to the small size of Slovenia, several small specialist centres might make more sense than one or two larger ones.

However, some locations such as Cerklje airport may seem perfectly suited but without any cargo in the area it is difficult to expect its success.

Others, however, are worried that decisions should have been made 20 years ago and that cargo routes have already taken a different course, toward Belgrade, for example. Because the neighbouring countries have already invested in new facilities, there is the danger that Slovenia

will be pushed to the side and cargo routes will divert to either Austria or Croatia. <<

The Port of Koper has proved to be successful in the company of the neighbouring Rijeka and Trieste ports but the planned railway, 27 kilometres in length, is crucial for its further development.

>>TRANSPORT & LOGISTICS Interview: Janko Pirkovič, Director, BTC Logistics Centre

Intermodal logistics terminal Ljubljana, redevelopment gate

By Tina Drolc, M.Sc.

With its favourable geographical location in the heart of Europe, Slovenia has been at the crossroads of lands for centuries. As explained by Janko Pirkovič, Director, BTC Logistic Centre, considering the considerable under utilised potential and Ljubljana’s position at the crossroad of two major trans-European corridors, the new company Intermodal Logistics Terminal Ljubljana (ILT) will provide integrated logistics services from one of the leading land intermodal logistics terminals. the Ministry of Economic Development and Technology. We also have the support of the Mayor and the Municipality of Ljubljana, which made a spatial plan for the project. The concept area, with the mapped structures on 45 hectares of land, was made by the Urban Planning Institute of Ljubljana. Together with the Slovenian Railways Institute of Transport, we plan to complete the investment in one year. In my estimation ILT will start to operate in September 2014.

Implementation of the entire project is set for 10 years. The project will be implemented in phases. For EUR 139m we plan to build

82,000m2 of warehouse space and create 800 new jobs. First we are planning to

rebuild the infrastructure and then the phased construction of warehouses.

Business partners of ILT will be able to choose to either rent the facility or manage the warehouse services in it.

Janko Pirkovič, Director, BTC Logistics Centre

Q The new company, Intermodal Logistics Terminal Ljubljana (ILT), will be a joint venture between Slovenian Railways (SR) and BTC as a public-private partnership.

When do you plan to start constructing the new terminal and start operations?

A Activities will be carried out in cooperation with Slovenian Railways.

The project is supported by the Ministry of Infrastructure and Spatial Planning and by 34

Business & Investment 2014

Q Assessment of the total investment for the new terminal is EUR 139m. Are there likely to be any price deviations in the future?

How realistic is the estimated forecast that 75% of funds will be from the EU? A According to the assessed items, the price of EUR 139m is quite realistic. The structure of total investment is as follows: • Additional land buyouts and documentation: EUR 4.3m; • Reconstruction of infrastructure: EUR 46.8m; • Business premises: EUR 2.5m;

• Warehouse space and equipment: EUR 85.3m.

For European funding, we have already approached the Government Office for Development and European Cohesion Policy with a request for consideration of an intermodal logistics terminal as one of

the potential projects for the acquisition of cohesion funding under the EU multi-

annual financial framework for 2014-2020.

According to the nature of the infrastructure project, we believe we will be successful in getting EU funds but it can happen that we may only get 50%.

However we will still seek the possibility of co-financing also for the construction of storage facilities and therefore EU funding could be 75%.

Q What is the potential profile of an investor for this project and what would be the amount of the expected investment? Are you already talking to someone and/or is there any interest from foreigners?

A We do not have any concrete agreements yet. Commercial activities to obtain potential business partners will start with the establishment of the company. The amount of the investment

contribution is a question of negotiation.

There might be different investor profiles; funds, forwarders, transporters or traders.

It is also possible that a big trading company would be interested in taking 20,000m2 of a warehouse.

Q Could you give us the name of a future ILT director?

A It is too early for that. As you might

know, among the potential candidates is Gregor Veselko, an individual with

appropriate references and education. From the beginning he has been involved in dealing with the documents for the emerging enterprise however, we do not have a specific agreement with him.

Q The quantity of goods currently taken by the logistics centres in neighbouring Austria and Croatia are at a maximum. How will the planned logistics centre be pitched in Central Europe? What would be the main benefits and the nature of the goods?

A The role of ILT will be important for

putting Ljubljana on the map of European transport corridors, in cooperation with

SR, Luka Koper and other Slovene providers and users of logistics services. With ILT we will create 800 new jobs. Its remarkable advantage is the synergies from operating all activities in one place. With the

construction of the terminal, our logistics centre will be comparable in size to the logistics centre Cargo Graz and compared to them, our advantage will be flexibility.

All the major freight forwarding brands are already in Graz; however their organisation is such that each has its own piece where it operates independently of the operation of the entire centre. We plan to regulate the

operation of the logistics centre so that we have a caretaker who masters the entire centre and seeks synergies among the stakeholders. This is an advantage also

for forwarding companies which therefore would need less of their own workers. The logistics centre in Zagreb is very big but we were pleasantly surprised when, even upon the entry of Croatia into the EU, some companies came to us and today we deliver goods to Croatia from our warehouses.

To this end, in autumn, we are planning for our partners to build a warehouse in the vicinity of Zagreb. Our logistics centre is currently operating 79,000m2 with prevailing food products. Due to the new demands of Slovenian and foreign traders, we need additional warehouse area. Storing and distribution of goods across Slovenia and the former Yugoslav republics still remains a priority, also for the future. <<

LogistiÄ?ni center BTC LetaliĹĄka 16, 1000 Ljubljana T: (01) 585 11 90 F: (01) 585 10 07 E: logisticni.center@btc.si www.logisticni-center.si

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>>AUTOMOTIVE

Photo by Shutterstock

Unsung

Heroes

By Simon Demšar

According to OICA (International Organisation of Motor Vehicle Manufacturers) statistics, Slovenia produced 93,734 passenger and commercial vehicles in 2013. Considering the size of the Slovenian labour force, it is a respectable number but not the most important as it all relates to one producer – Renault’s Revoz with its 2,000 employees.

However, there are another 14,000 people actively involved in the car industry, working as suppliers of components for the world’s leading brands. In all, there are 223 such companies in Slovenia, employing 15,800 people or nearly 2% of the Slovenian labour force. Their total annual revenue exceeds EUR 3bn which is 10% of Slovenian GDP and nearly 15% of total exports.

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Business & Investment 2014

There are 49 suppliers and four faculties associated with the Automotive Cluster of Slovenia (ACS), based on economic interest of its members uniting Slovenian automotive suppliers. Its goal is to reinforce competitiveness and create greater added value. ACS provides support for its members to integrate into the global automotive industry and to improve the range of their products and services. It

accelerates the efficiency of its members by providing research and development and cooperating with expert development and scientific institutions in both Slovenia and abroad.

These Slovenian companies are far from being passive suppliers to the global giants of the automotive industry. More often than not they are actively involved in cutting-edge research and development.

Some even predict that the European car industry would stop without the Slovenian contribution. Miran Purgar of Cimos says that “there is almost no car manufacturer in Europe without a Slovenian partner.”

Despite expected EU requirements relating to the minimisation of emissions, observers believe that sustainable mobility does not mean mobility without a car and it seems that Slovenian manufacturers are particularly keen on green technologies.

Hidria, for example, has been entrusted with the manufacture of one of the two electric motor drives for Porsche’s high performance sports car, the Spyder 918.

Cimos, as one of BMW’s key suppliers, worked with BMW on the development of its brand new i-series. As a key supplier for the electric car product line and based on their experience, Cimos developed three different motor mounts, including one plastic, which is a major innovation not only for Cimos but also for BMW.

Letrika, a little known company but a groundbreaker in electric cars, has developed the heart of Renault’s two-seater Twizy. They are already working on the introduction of high voltage systems to cars.

Andrej Pečjak of the Metron Institute won last year’s Rally Monte Carlo des Energies Nouvelles in the electric car category, beating the famous Tesla manufacturer. Pečjak is now working on a family electric car with a range of 700 kilometres. In partnership with another visionary, Aljoša Tušek, it is his goal to design a high performance sports car with a top speed of 380 km/h.

According to Igor Akrapovič, whose exhaust systems have powered Audi to a couple of 24 Hours of Le Mans wins, “We should no longer see the size of Slovenia as a limiting factor - the limiting factor is our mentality, we will have problems until we realise that things have changed and that we are now competing in the global market.” <<

Miran Purgar of Cimos says that “there is almost no car manufacturer in Europe without a Slovenian partner.”

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>>AUTOMOTIVE Q Over 20 years, a local company became a

Stojan Petrič, Chairman, Kolektor Group

Slovenia is fantastic for

high-tech

production

By Polona Križnar

small multinational corporation. You expanded the production programme of the core business and expanded the area of business and you have been active in takeover stories at home and abroad for years. I believe you are still looking at what is available, what are your plans?

A Kolektor wants to take over the integration of power engineering. With the purchase of Turboinstitut earlier this year we supplemented our offer in the market.

Now we are building small hydroelectric power plants in Bosnia, Serbia and Macedonia. We will continue with this and of course, we also want to build big hydroelectric power plants. We also want to develop an integration role for automotive parts which is why we want to buy Letrika, the global production and trading company. If we succeed, then we will integrate more complex products in the automotive industry which would take care of the higher added value. We would unite development components and the market so that, in the European market, we would become a major provider of such products.

Slovenian industry within the European space would then be more appreciated. All of the major manufacturers in the automotive industry have a few billion turnover. My theory is that Slovenian companies which are engaged in the manufacture of automotive components should have more than EUR 1bn turnover if they want to pursue the market in the European Union and worldwide. If we will not succeed by Letrika Aquisition we will, of course, look for other opportunities within the European Union.

Q You built your career at Kolektor as a manager and then later also as an owner. Do you have additional motivation because you are an owner?

A I’m a small owner, ownership never motivated me. I am motivated by success, business success. Ownership can also be burdensome. I have a big responsibility to the co-owners and to all the shareholders.

My responsibility to the shareholders is to report results twice a year. I would be very embarrassed if I had to talk about bad business results but fortunately, so far, I’ve had good results.

Stojan Petrič, Chairman, Kolektor Group has had a fascinating career. He and his colleagues built a multinational corporation in Idrija, Slovenia and now they are one of the most important suppliers for the automotive industry globally. Years ago they expanded their business to two other branches which was a great decision, especially for the crisis. “I knew if we were to survive the crisis with a profit then we needed at least three branches. If we look back in history, the crisis never affected all This year you received a lifetime branches and markets at the same time,“ Petrič explains of their Q achievement award from the Managers business model. Another good decision was made few years ago, Association of Slovenia. Does this award a management buyout which again was a good move with one flatter you or is it normal after such a successful career? of the former owners now bankrupt. He still has one wish, to A I decided to accept the award this year set up a Kolektor foundation as his role model, Robert Bosch, which, to be honest, flatters me a little. This did. We talked to Petrič about his career, his ambitions, this years is the reward for all those who have accompanied me for the last 20 years, all lifetime achievement award and about the Slovenian business and those who built our Group with me. This is political environment which he knows so well. the recognition that we worked well. We 38

Business & Investment 2014

worked 10 to 12 hours per day, increased sales more than 15 times and increased our profit 100 times. We tripled the number of employees and we have more than 20 companies all over the world. These are the results we have achieved over the last 20 years which is the proof that the award is in the right hands.

Q At the end of 2014 you will retire. Is it hard to believe that you will not be active in the business anymore?

A The office will still be mine. I will maintain a control function, staying on the supervisory boards of Kolektor Group and some of our companies. But as a manager, as the CEO, I will finish at the beginning of October. We are well prepared for that so as to not cause turbulence on the market. We know who the next CEO will be and we have explained the situation to our buyers, which is very important. A quick change of management is the hardest and the worst challenge for a company because you need two years to establish internal communication and an additional two years to establish external communication, it is only then that you can create added value in a company. If someone is replaced sooner than four years, the company loses.

This is the mistake Slovenia made in state companies. If you look at foreign companies, they have stable management, there are no quick changes.

Q You know the Slovenian business environment very well. The Slovenian economy is recovering slowly but slower than any other European economy. What are we doing wrong?

A The first sin is the banking system. Due to the low price of capital, banks were often overexposed to loans - financing companies with bad programmes, financing individuals who had invested in real estate, companies that had invested in the western Balkans - without a guaranteed return on investment through dividends Due to the high indebtedness, if there is a crisis then we have a problem. I don’t see a solution for this in the short term, it will take a little more time. In addition, according to what we created, we lived too well, we spent a lot of money and a lot of money went abroad.

However, it is necessary to bring this money back but many countries are trying this.

Q When can we say that we are out of crisis?

A I have to say that what our government did last year was more than all the previous governments had done in four years. This government said we will recapitalise the banks and although it affected owners and taxpayers, they did so. There was no other solution. They also set up a model to help the economy although it is far from realisation. They are trying to take

advantage of the cohesion funds for infrastructure projects, which is also good.

If we continue with actions, better results could be seen by the end of this year or early next year. This government also maintained a social policy, they are trying to reduce the cost of public administration although not by as much as we asked for.

For this, of course, we have to pay something - we have to pay higher taxes. In the short term we can already see growth in GDP and exports. We also have value added growth in the processing industry and we have a positive balance of payments.

Q So are we on the right track?

A Yes! We could do even better but we need to accelerate infrastructure projects because that generates growth. In addition, it is important that the liquid capital that banks now have is put into the economy.

The banks could already be lending to the economy but they don’t due to the bad experience historically. They don’t dare! But without a risk there is no project. You cannot ensure 100% that a business will not fail, risk exists and they must accept this. If owners are in trouble or their business is, then the banks should take away their equity stakes. For this it is necessary to educate people who will then lead the companies, which should be done as soon as possible. Seized ownership shares should be transferred to the Bad Bank or the Sovereign Holding Company.

Q What are Slovenia’s strengths compared to other countries you know?

A We have very good and qualified workers who, regarding competitiveness of the EU, are still cheaper. We are much more flexible than our competition within the EU and in the developed world. We have a secure business environment which is not emphasised enough. Slovenia is one of the most secure countries in the world and this is a big advantage for the business world.

We have a very well developed relationship between educational institutions and the economy. Enterprises in Slovenia receive the same services at significantly lower prices. If you look at European and American managers, we are no less capable but sometimes we underestimate ourselves too much.

The banks could already be lending to the economy but they don’t due to the bad experience historically.

They don’t dare! But without a risk there is no project.

Kolektor, we moved high-tech production to Slovenia and moved labour intensive production to Bosnia and Serbia. In Bosnia we have 300 employees and for our production, it is much more suitable than China, even if it is more expensive, because it’s close and we can control it. We only manufacture in China for the Chinese market and not because of lower prices.

Q What would you advise foreign investors who come to Slovenia? What kind of traps are waiting for them?

A Foreign investors must be wary of the bureaucracy and all the necessary consents and they should also pay attention to the tax legislation because it changes often. I do not really see any other problems. <<

Kolektor group d.o.o.

Vojkova 10 5280 Idrija, Slovenia T: +386 (0)5 375 01 00 E: kolektor@kolektor.com www.kolektor.com

Q For what kind of investors is Slovenia attractive?

A Slovenia is fantastic for foreign investors who want high-tech production.

For those who want labour intensive production, I think that our country is not the right one. Labour intensive production has no perspective in Slovenia. High-tech production in Slovenia is as effective as, let’s say Germany, but it is cheaper. Good examples are BSH and Renault. At Business & Investment 2014

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>>AUTOMOTIVE

Interview: Holger Postl, CEO of Tam DuraBus

Restarting a sleeping Slovenian beauty Chinese giant, CHTC Hi-Tech Group Corporation, which employs over 60,000 people have integrated the heritage brand TAM, the old, once famous but then collapsed Slovenian automobile factory.

Now integrated, TAM DuraBus is a bus and commercial vehicle manufacturer with a strong strategic commitment to produce with efficiency and environmental sustainability.

We talked with Holger Postl, CEO of Tam DuraBus, about the investment, the Chinese capital, about their vision and about Slovenia as a business environment. He is young, ambitious and realistic manager and now CEO of Tam Durabus, who initiated the investment, with experience in MAN, the manufacturer of trucks and buses where he was project manager for China and Russia.

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Business & Investment 2014

Q Looking back at one year of operations of the first large-scale Chinese foreign direct investment in Slovenia, are you satisfied?

A Taking all the achievements of the first year into account, we can clearly say that we are satisfied. We managed to restart the sleeping Slovenian beauty of TAM, once known as the top commercial vehicle manufacturer of the former Yugoslavia. We were able to build a strong and ambitious core team in Maribor consisting of both former TAM employees and new people.

During this first year we also presented the company, brand and products at the biggest international fairs for the bus industry (Busworld Kortrijk, Belgium) and airport equipment (Inter-Airport Munich, Germany) as well as local fairs such as the one in Celje. Large-scale orders were acquired from markets including Russia, Saudi Arabia and the UK, while the first TAM coaches were sold in and around Slovenia.

Of course, many challenges still lie ahead, but with an experienced engineering team and skilled workers in production, we are confident that we will be able to successfully cope with the current requirements of production and also develop products for the future.

Q How did you integrate your company in Slovenia?

A As a foreign investor â&#x20AC;&#x201C; especially one from China â&#x20AC;&#x201C; we are eager to show that things can be done entirely correctly and on some occasions, even in an exemplary manner. The most promising starting point to integration of a new company with the local community is looking to the inside and creating a fair and open work

01

environment. Events such as joint barbeques in summer or Christmas parties both for our staff and their kids contribute to the understanding that we value the efforts of our staff.

We are very happy to see that, even after one year, the integration into the local environment has provided some strong roots to build on. On the one hand we are receiving more and more applications from students looking for internships, student work and career opportunities and on the other hand we are providing additional training and experience for our staff in order to give them the necessary tools for successful work in an international company, e.g. organising visits for our R&D department to China in order to establish contacts and exchange knowledge with other automotive sister companies; we have started providing an in-house English language course for all employees wishing to learn or improve their language skills.

Of course, we also look to present our company to the wider audience both in Maribor and in the rest of Slovenia.

Collaboration with local schools and universities, the recent welcome of childreporter Adin from the elementary school, Valenitina Vodnika , who managed an excellent explanation of bus production to a wide audience on TV. Such projects are fun and a nice way of integrating our company in Slovenia beyond the purely business activities.

Q How did Slovenia integrate your company? What are your experiences?

A Every relationship needs to grow. With the continuous elimination of any

remaining doubts about our long-term objectives in utilising Slovenia as the base for our pan-European operations, we also see Slovenia and its representatives becoming fully aware of the advantages this FDI approach or “show-case project“ brings and therefore, more and more welcoming.

As with all companies, no matter whether established by domestic or foreign capital, we face the same challenges in dayto-day operations as well as in defining strategic plans for the future. In this respect, support from high level local and central authorities is, for sure, highly appreciated. Just recently, the newly appointed Minister of Economy, Mr Metod Dragonja, was able to meet with high-level representatives of our Chinese mother company and re-confirmed the FDI subsidy we had applied for in 2013. We see this as an important and very positive result of the concerted efforts of our investors, the Chinese embassy and of the sound reason on the side of Slovenian top politicians identifying the strategic importance of supporting FDI projects for the benefit of the Slovene economy.

With the elimination of certain administrative hurdles, we (the management of TAM DuraBus) therefore understand the approval of the subsidy payment as an appreciation of our current activities and our investment plans.

Towards our investors, the decision represents the fulfilment of the promises given by various government agencies during the course of the last two years.

After all, the sound financial reasoning behind supporting FDI projects is well known and established. Even at the current size of operations, Slovenia will see positive returns on their “investment“ from the subsidy granted to TAM DuraBus within two years.

But more important for us is the wider context of our integration into Slovenia. As already mentioned and from what we understand this could be a general - and sometimes justified - characteristic, Slovenia can be somewhat sceptical of the business environment for foreign companies and projects. For our company, we saw those doubts start to disappear as soon as our workforce started growing. As we employ exclusively from the local labour market, the word spread quickly. Today some of the best indicators of our successful integration are perhaps the least tangible in terms of financial reports and indicators. One nice example is that our two colleagues from China engaged in our operations in Maribor (Bryan and Josh), have already acquired the Slovene nicknames of Branko and Joze from their Slovene co-workers.

With all that in mind, we are confident that it is well understood by now, that

Chinese investment directly contributes to the employment of a local workforce and to the development of the economic environment. This fact is also highly appreciated by the municipality of Maribor, which has been supporting us beyond any political considerations.

Q What do you consider as the biggest obstacle for start-ups (FDI) in Slovenia at this time?

A The non-performing banking sector.

With the promotion of start-ups and FDI, the access to financing and reasonably administrated banking instruments is crucial. Banks asking start-ups for a track record of several years or not being able to process bank guarantees or letters of credit from internationally recognised top ranking banks at all or within an acceptable period of time, presents a major obstacle to initiating business in Slovenia.

With the strong ownership structure which TAM DuraBus has, such obstacles can eventually be overcome. For local start-ups and companies without stronger backup, the current blockage in the banking system is a pitfall.

02

Q What are your visions for TAM DuraBus in Slovenia?

A As a medium sized player in the European bus industry, it is our strategy to focus on niche markets with high quality demands. This strategy seems simple enough, however we are well aware that it will require the most delicate balance of knowledge, experience and ambition from our own staff, our development partners and suppliers. We will continue to build on the knowledge that we have been able to obtain from the legacy of TAM and the experience of our staff and in addition, we will provide strong foundations from the resources at our disposal from our Chinese investors and sister companies. Our short term tasks are clear, in addition to a constantly upgrading our current products, among them airport buses and tourist coaches, we are currently developing new products and new technologies such as top of the range electric-drive systems for city buses, to be presented in the fourth quarter of 2014.

Supported by acquiring a respectable position in the European market, we have the ambition to re-establish the company and brand of TAM as part of Slovenia’s industrial identity and give it a new quality stemming from integration into a strong international conglomerate. We want to be proud of our heritage and we want Slovenia to be proud of one more of their companies succeeding in the European and the global markets. After all, TAM was built to last. <<

03

04 01 02 03 04

VivAir airport buses Holger Postl, CEO of Tam DuraBus VivAir production line Vive TH, tourist coach

TAM-DURABUS Cesta k Tamu 33 SI-2000 Maribor Slovenia – EU T: +386 2 621 78 00 F: +386 2 621 78 15 E: info@tam-durabus.eu www.tam-durabus.eu

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>>ENERGY EFFICIENCY

01

Knauf Insulation, Ĺ kofja Loka

Innovative Slovenian solution for a better quality of life Knauf Insulation from Ĺ kofja Loka, part of the multinational corporation Knauf Insulation owned by the German Knauf family, is known as the manufacturer of insulation solutions for the construction, industry and energy sectors. With their new innovative line of products, Urbanscape, the company is expanding into horticulture and gardening.

A new generation of mineral fibres, with no additives due to a special treatment, are able to hold above average amounts of water.

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The contribution of Slovenian knowledge Urbanscape fibres soak up a sevenfold volume of water that is gradually released, water consumption is therefore reduced and consequently the impact on the environment is also reduced. Urbanscape products reduce the need for watering and the addition of Urbanscape inorganic fibres improve the air - water regime of the soil.

Fibres loosen the compact soil and in sandy soils, the fibres act as an additional reservoir of water. The fibres are composed of elements such as magnesium, potassium and calcium and are certified: CE, EUCEB, RAL, ISO 9001, ISO 14001, OHSAS 18001, LGA. Urbanscape fibres have been tested by a variety of renowned domestic and foreign institutions. Tests, carried out in the greenhouse of the Faculty of Agriculture and Life Sciences, University of Maribor, demonstrated exceptional results.

In addition to growing crops with less water, it also generates a greater number of shoots and inflorescences, increases the green mass of plants as well as a stronger and more branched root system.

Urbanscape - a variety of potential uses Due to its properties, Urbanscape products have a variety of uses. On the one hand it can be used as a substitute for green in built-up areas in urban centres where it has been offered as the green roof system, Urbanscape. It can also be set as a green floor area – the cultivation of grass or greenery is in this way more efficient, economical and sustainable. The third possibility for use is for gardening and ornamental flowers. Urbanscape can therefore be tailored to needs and wishes and in the form of cubes - Urbanscape Green Cubes – is mixed into the soil resulting in less water consumption, improved growth and appearance of the plant.

Urbanscape Green roofs – the future of urban living According to the experts, the future of urban living is a green roof where the roof of a building is partially or fully covered with green vegetation. It improves the management of storm water, air quality and the insulation properties of buildings.

Green roofs are energy efficient with savings for heating up to 25% and for cooling up to 75%. A square metre of green roof absorbs 5kg of carbon dioxide

annually, removes 300 grams of dust particles from the atmosphere and. absorbs the equivalent emissions as those resulting from a car moving at 50km/hour. A green roof surface includes the surfaces of balconies and terraces with intentionally landscaped greenery such as grass, flowers, low vegetation as well as shrubs and trees.

The most widely used concept of green roofs is a system of individual layers of overlapping flat and pitched roofs with up to a 35 degree inclination. The use and implementation of Knauf Insulation green roofs is widespread in the countries of Western Europe, USA and Asia. In Slovenia, green roofs still represent prestige. What often happens is that toward the end of construction projects money is running short and so green roofs are often deleted from the project. In developed countries such as the US they are more common, in part due to a ‘rain tax‘ where people in the US and Germany with green roofs do not pay taxes on rainwater. Furthermore, there are various schemes abroad that help to broaden the awareness of green roofs. In the Netherlands, municipalities offer a subsidy of up to EUR 50 for each square metre of green roof.

Very popular in the U.S. are ‘urban gardens’, areas used for growing vegetables and flowers.

Urbanscape products used in gardening Urbanscape Green Cubes are products intended for gardening and cultivation of ornamental flowers.

To achieve optimal results in terms of improved water retention, Urbanscape cubes should be mixed into substrate in a 50:50 ratio. The use of cubes is recommended for planting tub plants in larger basins, growing potted plants, backfilling pits for planting trees and shrubs, as well as for machine or hand incorporation into corn or garden soil, with the aim of improving soil properties. <<

Green roofs - positive effects for buildings, residents and the environment

Urbanscape is easy to build and up to 10 times lighter than standard substrates for green roofs, which enables construction of green roofs on lightweight constructions. It has good fire protection properties and excellent water retention ability. Urbanscape prevents flooding of systems for drainage and sewerage waste in torrential rain. In the first phase, a green roof retains plenty of water and prevents its spilling directly into the sewer system.

URBANSCAPE Green floor area Urbanscape is also a popular base for greens. Putting Urbanscape substrate into green floor surfaces reduces water consumption significantly and at the same time improves plant growth.

Knauf Insulation Corporation is the most active innovator of green areas in the Middle East, where water scarcity is the greatest. In cooperation with local environmental agencies they are preparing a way for parks/green space construction, where a smart way of installing lawns using substrate and proper watering would reduce water consumption by up to 70%.

02 01 Green roof Urbanscape recently set on the roof of the Eco silver house building in Ljubljana.

02 Urbanscape Green Cubes

Knauf Insulation d.o.o., Škofja Loka Trata 32, 4220 Škofja Loka, Slovenia T: +386 (0)4 5114 000 F +386 (0)4 5114 179 E: oem@knaufinsulation.com www.oem.knaufinsulation.com

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>>MANUFACTURING Interview: Boštjan Gorjup, Managing Director, BSH Home Appliances, Nazarje

Final decision is often by the women

By Polona Križnar

For BSH Home Appliances, 2013 was a very successful year. They made a EUR 32.2m profit, the largest in their 20 year history. Revenues increased by 10% to EUR 344m.

The factory, in Nazarje, is one of 41 factories of the German home appliances group, BSH - Bosch and Siemens Home Appliances. Despite strong competition from within the group, Nazarje is one of the most successful and they are also one of the global leaders in production and development of small home appliances for food and drink preparation and premium coffee appliances.

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Boštjan Gorjup, Managing Director at BSH Home Appliances Nazarje, discusses how they maintain their competitiveness within the group and in the market, their research and development expertise, their plans and their most popular products.

operations are financed via the BSH Group but we are indirectly affected as our Slovene suppliers find it more difficult to finance themselves.

Q Would the Germans invest in Slovenia

high tech products for global markets - we export 90% of our production and the major foreign markets are going well. BSH Hišni aparati d.o.o. Nazarje is very competitive and the products have won numerous design awards in Europe.

again or would they look elsewhere because of the experience they have?

A In 1993 when BSH invested in Slovenia, other countries in the region (i.e. Poland, Turkey, Slovakia) were far less developed and attractive as foreign direct investment opportunities. Today, the competition is much greater and many of the other countries have better competitive advantages and also images.

Q How has the crisis in Slovenia affected

Q Would you say that generally the BSH

your business?

A Fortunately our company is not directly affected by the crisis in Slovenia as our

investment in Slovenia has been a good investment?

A Yes.

Q Your company has navigated through the economic crisis successfully. What did you do?

A In our factory in Slovenia we produce

Q Why invest in Slovenia? What are the advantages compared to the other markets where BSH has production facilities such as Poland, Slovakia and Turkey.

A Slovenia has a very well qualified workforce, a very stable environment, very good logistics and an excellent supplier base - at least in our case.

Q These markets are very competitive particularly in terms of knowledge Do you think Slovenia generally underestimates them, especially Turkey?

A For sure we underestimate them.

Q What does Slovenia need to be aware of to

Q What about your short-term plans?

A Despite many interesting and complex challenges awaiting us in 2014, we will continue to strive to retain professional processes in our new subsidiaries in the region.

Q What are your strategic markets?

A The strategic markets for the factory are mainly European, including Russia.

Q Your markets are different. What is your universal product?

A Actually we don’t have one universal product because we are serving customers with a variety of small domestic appliances which are helpful for food and drink preparation.

ensure that investors such as BSH do not give up on Slovenia?

A Worforce taxation and labour legislation are the main areas that Slovenia needs to be careful about.

Q What is your best-selling product?

A In general we can say that our best-

Q Is there something that the Slovenian

selling products are universal kitchen machines.

government should do to attract more foreign investment?

A The Slovene government should try to stabilise the financial sector and make sure that the budget deficit is reduced as quickly as possible. This will send the right message to international markets and will inspire confidence.

Q But BSH will stay in Slovenia?

A In Slovenia we have BSH’s biggest and most competitive factory for motor driven small appliances as well as for fully automatic coffee machines – this will continue in the short term.

Q What is your vision?

A We plan to invest further into our current factory, improve the quality of production and add some more production lines to satisfy the demand coming from the international growth philosophy of our group.

Q What are the future trends in your business? In what way will the products develop?

A Last year proved successful in the field of appliances for food preparation, however, it is of great importance to gain projects within the group for the future.

Most development projects relate to coffee machines.

Q In your experience, what is the most important: price, design, technology, quality?

Probably everything should be considered but what stands out?

A Yes, you are right. All are important, all need to be considered.

Q Are your customers mainly women or men?

A It is hard to say but I believe our customers are mainly women. It depends on which appliance customers are buying/ choosing. Generally couples choose the big appliances together (i.e. appliances for the whole kitchen) but then the final decision is often by the woman.

Boštjan Gorjup, Managing Director at BSH Home Appliances Nazarje

Q Whom do you employ? How do you educate your staff? Do you offer scholarships?

A In our company we currently employ over 1,300 staff with all different levels of education – from primary school to qualified engineers of different profiles.

Satisfaction and personal development of employees are the most important elements for the success of the entire company. Personal development and training of our employees is of greatest importance and we have our own training centre where our employees get different types of training during the year. <<

BSH Hišni aparati d.o.o. Nazarje Savinjska cesta 30, 3331 Nazarje, Slovenia T: +386 (3) 83 98 222 F: +386 (3) 83 98 200 www.bsh-group.si

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>>START UP

01

New generation, new entrepreneurship

By Mark Koghee

The new generation of entrepreneurs don’t run to the bank to finance their start-up’s, they go online. Several young creative entrepreneurs in Slovenia have successfully taken their products to market with money raised via the crowdfunding website, Kickstarter.

02

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Last year, nine Slovenian projects raised over US$1.6m via crowdfunding platforms.

It is a staggering number for a country as small as Slovenia. From an electric bicycle wheel to a tiny item finder; the products receiving funding were diverse. The young entrepreneurs behind the products are all connected to Ljubljana’s creative community which two years ago started regular meetings in Kino Šiška in Ljubljana.

“We had to work together”, recalls Luka Piskoric, the co-founder of the Crowdfunding Lab in Ljubljana. “The economy was dead. We had many great ideas but a lack of opportunities. We

had to look for other ways to get things done.”

In 2012, the group started to explore the possibility of crowdfunding. “In October we organised the first crowdfunding workshop. Within 15 minutes the available 25 places for the workshop were taken. For the young entrepreneurs, crowdfunding was the only option.’’

The foldable wooden LL Stol, developed in the workshop of the Faculty of Architecture in Ljubljana was, in autumn 2012, one of the first Slovenian projects on Kickstarter. The goal was to collect

Last year, nine Slovenian projects raised over US$1.6m via crowdfunding platforms. It is a staggering number for a country as small as Slovenia. From an electric bicycle wheel to a tiny item-finder; the products receiving funding were diverse.

01 02 03 04

The Flykly electric bike wheel The Chipolo item-finder The Ondu wooden pinhole camera The Musguard mudguard

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04

US$18,000 although expectations were exceeded with US$21,957 pledged. Soon more campaigns followed.

In the spring of 2013 product designer, Jurij Lozic from Ljubljana, put his removable and foldable Musguard mudguard for bikes on Kickstarter. He wanted US$10,000 and raised US$44,633.

“I was looking for ways to make my ideas a reality. I didn’t plan to try crowdfunding but a friend, Niko Klansek, had already had a successful project and persuaded me to try.’’

Musguard immediately took off on Kickstarter and things are still developing for the foldable mudguard which is especially popular with urban hipsters

riding fixed gear bikes. “It’s going really well’’, says Lozic. “It’s almost all going too fast. I now have help of two assistants and my family.’’ Musguard is sold worldwide, most mudguards go to the US, Canada, Australia, Taiwan and European countries.

Niko Klansek, who assisted Lozic with his campaign, is one of the driving forces behind the success of the Slovenian crowdfunding projects. Klansek is a young Slovenian who went to the US to play basketball and is now an entrepreneur living in New York. He worked on the LL Stol campaign and is the man behind the most successful Slovenian crowdfunding project to date; the Flykly electric bicycle wheel.

The goal for the Flykly crowdfunding campaign in the autumn of 2013 was US$100,000, in one month US$701,239 was pledged by 2,358 backers. During the same period there were also Kickstarter campaigns for item-finder Chipolo, a lightmetre for Android phones and iPhones Lumu and the wooden pinhole camera, Ondu, which all exceeded the set goal.

“The crowdfunding campaigns were a huge success”, says Piskoric of the Crowdfunding Lab. “We now get new enquiries all the time after the boom of last autumn.’’ The Crowdfunding Lab, along with many creative entrepreneurs, has taken up residence in the first floor of a former tobacco factory in Ljubljana. The renovated room, the Poligon, has turned into the vibrant centre of new entrepreneurship. The Crowdfunding Lab offers four free consulting hours a week about crowdfunding which are extremely popular. A crowdfunding conference held in April 2014 in Poligon attracted around 100 attendees.

Crowdfunding is hip that much is clear.

There are currently 700 crowdfunding platforms in the world according to American crowdfunding expert, Jason Best, at the conference in Ljubljana. In 2013, US$5bn dollars was raised via these platforms and this year the expectation is that US$9bn will be raised globally through crowdfunding. “This is the new economy’’, concludes Piskoric. << Business & Investment 2014

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>>START UP

Marko Guček, Manager of GoOpti

400 places in Europe

are big enough for our model

By Polona Križnar

GoOpti takes us there, to cities and to airports. They show people how close to the airport they are and how cheaply they can get there. Initially, GoOpti drove only to and from Slovenia but soon they will also drive to and from Croatia and Italy. “Before GoOpti, noone was able to manage it with 100% reliability,” said Marko Guček, Manager of GoOpti, the low cost transfer company.

We talked to him about their ambition to grow and develop new destinations and about their excellent service.

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Q In June 2011 you lounched GoOpti. Are

beginning it was clear that there was a lot of demand for our services. The best publicity for us are satisfied customers.

We also advertise on radio stations, in magazines, on Google.

also have a tourist agency and when we were considering a shuttle service to the airport we found them but their problem was that they were not reliable. They never took the risk. If there was not enough passengers the price was higher than they had promised but you cannot do this to your client. So, in short, there was no one who was 100% reliable and in terms of reliability we are still the only one. We developed a new concept, a new system, we invented special logarithms and this is our trade secret which is not so easy to copy.

We somehow educated the market and other providers are also doing better than before. We show people how close to the airport they are and how cheaply they can get there. Before us, no one was able to do it.

Q The idea to drive people to or from the

Q What is your pricing policy? The sooner

airport now seems very simple, especially in Slovenia, but you were the first and still today you have no real competition.

A Yes, but the question is, who are our competitors? We have some indirect competition. There are other companies driving passengers from Ljubljana to Venice, for example. I know this because we

you order the less you pay? For example, how much is the lowest price to Venice?

A To Venice, the cheapest price is EUR 14 and the most expensive is EUR 40 but with our new website it will be even more flexible. We have added more algorithms and more artificial intelligence. We are going to give passengers a better chance to

you still a “start-up” or have you moved to the next phase?

A We started with one car and now we have 36 vans, eight cars and one bus. To date, we have transported more than 200,000 passengers. Monthly we have around 10,000 - 12,000 passengers and during the season and holidays, we transport up to 15,000 people per month.

Q You success was achieved very quickly.

A Yes, it was relatively quick. At the

tell us how flexible they are. Right now, you should have three hours of flexibility which means you must be able to arrive at the airport three hours earlier and leave the airport three hours later. We will change that. Each traveller will tell us how flexible he or she is, someone can wait for an hour, others two or three hours, students can wait for 12 hours. The more flexible you are, the lower the price will be. We cannot tell you today what the lowest price will be but we can tell that the highest price will be the VIP price. In between, the price will be based on calculations which are determined by how full the van is.

Q What are the habits of your passengers?

Do they book the shuttle service well in advance or at the last minute?

A At the beginning, two years ago, most people booked our service at the last minute. They had already bought their plane ticket but for ground transport they would wait. They thought that maybe someone would take them to the airport or they would take a bus or a train. Now it is different, a lot of people buy their plane ticket and their transport to the airport at the same time. Now, on average, they buy transportation 26 days prior to their departure. Those who book later just pay more.

Q You now plan to expand abroad - to Croatia and Italy. Do you have any plans to expand further??

A We will first go to Croatia and Italy because they are the closest to us and we already know the markets. We have already found some partners who could take our franchise. We are also looking for potential sites in Serbia, Poland, Spain, Germany and Austria.

Q How do you find new places for your business?

A Some places we find, some places find us. We made several researches with Faculty of Economics about most

appropriate countries and cities. On the other side some foreigners, that travel to Slovenia with us, are surprised about our business model and how our service works and tell us, that this would work also in their country.

Q Now that you are already an established carrier, is it easier to find investors?

A In the last few months a lot of people contacted us but at the moment we are not actively seeking investors because we are not quite ready. First of all, we must finish our new website, then we will spread into neighbouring countries. For that slow growth we do not need an investor. We will need them later for rapid growth and we want to be prepared for that. Right now, we still donâ&#x20AC;&#x2122;t have a clear picture of how the new franchise will work. Is it going to work as well as in Ljubljana, will it go slower or maybe faster?

Q According to your research there are 400 cities in the European Union where your model could be used. That sounds a lot...

A Yes, we have identified that there are 400 places in the EU with a population big enough for our model. That is, 400 cities that are not very close to a large airport but with four or five smaller airports nearby.

So someone must take those passengers to the airports. We see potential!

Q What will you change in your new markets? What will you do differently than in Ljubljana?

A We have learnt a lot. Now we are renovating our website. We have learnt we have to pay attention to the drivers, the drivers are our contact with the passengers and they represent our company. They need different skills than bus drivers who do not have direct contact with passengers. The drivers are pilot and flight attendant in one and they must have certain education and they need to be well prepared.

Q What is your motto, what drives you?

A We wish to offer a good service. We would also like to offer some new things.

We are pleased to alleviate the stress of people who previously did not know how to get to the airport. This is good work and now we want to improve the system. We want to develop new destinations. We want to associate with hoteliers to drive their guests to their hotels. We strive for transport algorithms that would operate also for shorter locations. There are a lot of things we can still do and that drives us. <<

We developed a new concept, a new system, we invented special logarithms and this is our trade secret which is not so easy to copy. We somehow educated the market and other providers are also doing better than before. We show people how close to the airport they are and how cheaply they can get there. Before us, no one was able to do it.

Vista TM d.o.o.

18 Technology Park 1000 Ljubljana T: +386 (0)1 320 45 30 E: info@goopti.com www.goopti.com

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>>BUSINESS SERVICES Interview: Mojca Kunšek, M.Sc. Director of the Agency of the Republic of Slovenia for Public Legal Records and Related Services (AJPES)

Mojca Kunšek, M.Sc., Director of the Agency of the Republic of Slovenia for Public Legal Records and Related Services (AJPES)

10.9% of registered sole proprietors have an address abroad and 17.4% of registered companies have foreign owners

By Tina Drolc, M.Sc.

The Agency of the Republic of Slovenia for Public Legal Records and Related Services (AJPES) performs the following basic tasks: (I) registry keeping, (II) collection, processing and publication of annual reports, (III) statistical research and data collection and (IV) credit rating operations and other commercial activities.

Mojca Kunšek, M.Sc., Director, explains that the vision of AJPES is to be the primary source for business information, including data and information for a transparent business environment.

Q How would you describe, according to the

The credit crunch and financial crisis led to an increase in the number of bankruptcies and liquidations. The data in the business register shows that, although the number of registered business entities in 2013 increased by 4% in comparison with the previous year, the number of deleted companies was stable.

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data of the Slovenian Business Register (PRS), the situation in Slovenian business entities?

Which are the business segments that are in good condition and have potential?

A PRS is a central database containing information about all business entities involved in a profit-making or not-forprofit activity, having their principal place of business located in the territory of the Republic of Slovenia (RS), as well as information on their subsidiaries and other divisions of business entities performing business activities in Slovenia. On 1 April 2014, PRS recorded 79,777 sole proprietors and 68,418 companies. We could say that the main problem of Slovenian companies is a relatively high average indebtedness as measured by EBITDA. Due to the credit crunch we can expect a reduction in future borrowing in all segments. We can

emphasise that not all companies have problems with their operating and economic position, especially not those companies which get the majority of their revenue from foreign markets – for example those in the pharmaceutical and vehicle industries . We can say that the main positive impact on GDP have been these exporters. The worst situation is in those companies whose main market is the domestic market due to lower domestic demand, the high rate of unemployment and high taxes. We should also be aware of the problems of domestic banks which make it difficult for companies to get fresh operating and financial capital.

Q What is the situation in profit-making and not-for-profit activities in Slovenia?

A Regardless of whether we are talking about the profit-making or the not-for-

profit segment, all institutions have the same problems – the more market oriented they are, the more vulnerable they are.

Therefore, less vulnerable are companies those with state positioned prices such as institutions in the health system, utilities, social welfare institutions, etc. Statistically, the status of not-for-profit organisations remains roughly at the same level as the previous year. At the end of 2013, 504 voluntary organisations were recorded in the register.

Q The number of unemployed increased by more than 12,000 (13.5%) in the 2012-2013 period. Consequently, many people decided to start a sole proprietorship however the situation now is that many sole traders are closing their companies.

A The credit crunch and financial crisis led to an increase in the number of bankruptcies and liquidations. The data in the business register shows that, although the number of registered business entities in 2013 increased by 4% in comparison with the previous year, the number of deleted companies was stable. For example, the number of deleted sole proprietors in 2012 rose 25% from 2011, but in 2013 the numbers of deleted entities fell 9% from 2012. The situation of registration and deregistration of companies is, over the last three years, almost the same.

Q As in January 2013, in January 2014, too, turnover from the sale of services increased at the monthly level, this time by 2.4%. It increased the most in information and communication activities, by 3.1%.

How is this being reflected in AJPES? A For January 2014 compared to January 2013, the statistical data for non-payers shows a declining number of entities defaulting. According to this data, the share of entities defaulting fell from 12% to 11.7% with the greatest improvement in the information and communication segment of 12%.

Q AJPES also provides credit assessments for Slovenian companies. Which are the companies with the best credit rating in Slovenia?

A AJPES collates credit rating reports on the credit standing of individual business entities on the S.BON AJPES platform and online credit rating report S.BON, which complies with Basel II and categorises companies in 10 credit rating categories according to their credit risk. The reports are based on a large database of official data and also indicates a company’s ability to settle its obligations over a 12 month period from the date of the most recent financial statements and also information on a company’s short term payment discipline and other important information

Operating activities of foreign sole proprietors in Slovenia Education 3%

Computer and comunication 3%

Ecology and waste management 4%

Construction 30%

Other operations 14%

Catering 6% Logistic 6%

Expert and science 13%

Manufacturing 10%

Sales 11%

Origin of foreign sole proprietors in Slovenia UK 2% Ukraine 2% Austria 4% Macedonia 6%

Italy 26%

Kosovo 8%

Serbia 8%

Bulgaria 10%

BiH 21% Croatia 12%

about the company and its operations.

These reports are available in Slovene, English, German, Italian, Hungarian and Croatian.

According to the data from S.BON AJPES, the entities with the best credit rating are those registered for social welfare, healthcare, information and computer sciences, accounting and consulting and veterinary. AJPES also provides an analytical tool, FI-PO AJPES, which allows an overview of data from annual reports for all kinds of entities from 1994 until today and offers numerous options for comparing data both at the individual and aggregate level, for regions and municipalities.

companies in the EBR is about 0.5 % but foreign entities or entities with foreign owners in Slovenia have greater importance. According to the data in PRS, 10.9% of registered sole proprietors have an address abroad and 17.4% of registered companies have foreign owners. Of these foreign sole proprietors, 30% have operated in construction, 13% in expert, science and technical fields, 10% in sales, etc. For companies with foreign owners, 26.3% operate in sales, 23.6% in construction and 13.0% in expert, science and technical fields. For both groups, the next are companies operating in manufacturing and then all other business activities. <<

Q AJPES offers access to the European Business Register (EBR) which includes over 20 million European companies. The EBR network currently includes 28 members, 21 of which are members of the European Union.

How are Slovenian companies positioned in European Business Register? What is the percentage of foreign entities that decide to register their business in Slovenia? Which segments are the most popular here?

A Based on the size of the Slovene economy, the percentage of Slovenian

Agency of the Republic of Slovenia for Public Legal Records and Related Services (AJPES) Tržaška cesta 16 1000 Ljubljana, Slovenia T: +386 (0)1 477 41 00 E: info@ajpes.si www.ajpes.si

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>>BUSINESS SERVICES

01

02

Sinet – growing by giving back to society SINET has been in the market for more than 20 years, providing solutions to its partners who share the same vision – we grow together by giving back to society. As a company employing disabled people, SINET has established a business model which proves that the disabilities of the workers are not an obstacle for their successful integration into the labour market. Internally organised into five profit centres, SINET provides solutions in ecology, safety at work, security services, printing and candle production.

Founded in 1993, SINET has employed disabled people from its establishment.

Despite difficult market conditions, SINET has managed to develop a business model which integrates social responsibility into the core of its business. With the diversity of the solutions we offer, we strive to become the number one choice for our business partners who understand the benefits of our business proposal: one partner for a variety of solutions (a onestop-shop), quality, cost-efficiency through fulfilment of quota obligations and above all, the synergy of business and a social cause. Hence our slogan – more than a business partner!

Management of health, environment and safety at work At SINET we believe that the future economy belongs to organisations valuing human capital. Committed to the same 52

Business & Investment 2014

values, we have been providing support and counselling to enterprises, seeking such assistance, over the last 20 years with experts from our two profit centres – PC Ecology and PC Safety at Work. We are committed to providing high quality services in health and safety at work, fire protection, environmental protection and food safety.

In particular, over the last two decades, the world has witnessed a major shift in the economy and experienced the process of continuous restructuring of production and service organisations, coupled with subsequent changes in working life and in the responsibilities of employees. This has created an urgent need to strengthen and adapt the tools and methods used to ensure that health, environment and safety matters are protected, promoted and properly managed at the enterprise level.

We have also managed to develop a strong professional team of experts in the areas of safety at work, fire protection, environmental protection and food safety.

Being aware of the need of constant adaptation to regulatory dynamics as well as to the changing requirements of our clients, we have proved to be a reliable business partner to many different clients; from small and medium sized companies to big corporations and companies from many different sectors including both production and service organisations. This is achieved though ongoing training of our experts, a strong commitment and an individual approach to each customer, taking into account the economic situation of the company, regional and sectoral peculiarities, past experience and future planning related to worker health and their expectations.

In the area of safety at work, we provide a complete set of services to our customers including, but not limited to, safety statements, risk assessments and revision of these documents, staff training, inspection of testing equipment, measurement of working environment (physical and chemical hazards), low-

voltage electrical installations, protection against lighting, as well as advice in establishing OHSAS18000. Our expertise in fire protection includes all the tasks related to associated regulations including elaborating the documentation required by regulation (fire risk assessments, calculation of fire extinguishers, drawing up fire protection, evacuation plans), training, service and maintenance of fire extinguishers and hydrant systems.

As the accredited laboratory, our experts in environment protection provide measurements of noise and air emissions, preparation of safety reports, reports on environmental impact and expert assessments. We also provide services for the implementation of the ISO 14001 standard, preparing all the necessary documentation to obtain environmental permits. In addition, our highly qualified team provide services for preparation of HACCP systems and guidelines for food hygiene practices and other tasks related to food safety. Our services also include providing expertise in the area of hazardous chemicals where we provide consulting services, all the necessary safety training, preparing the documentation for authorisations and providing advice and monitoring compliance with regulatory requirements in this area.

With the complete range of services, SINET offers a multidisciplinary occupational approach, taking into account economic, health and environmental factors and thereby facilitating the effective use of financial and human resources. This approach optimises resources, the timeframe and the necessary coordination of experts to achieve a healthy organisation for each of our clients.

That is, environmental management in enterprises and the issue of occupational health, particularly in cases of toxic or other harmful emissions which are inextricably linked. The vision of health management at work must therefore take into account both. Only such a multidisciplinary approach allows the optimal minimisation of risks and the simultaneous achievement of economic and environmental benefits which are of the utmost importance not just for the enterprise but for all stakeholders.

Reliable security service Security of our assets is becoming increasingly important, not only for individuals but also for companies.

Protecting possessions is one of the prerequisites of today’s business, allowing enterprises to successfully alleviate the risk of potential damage, injuries, theft etc. In addition, guaranteeing the appropriate level of security can have important

implications for the success of insurance claims.

The solutions we offer have been designed for all industries and sectors.

Our clients include retail, production, telecommunications, banking and public administration as well as households. At the customer’s request, our cooperation may begin with a security risk evaluation and consultancy and continue with the design and implementation of a security system.

Having our own Alarm Response Centre enables us to keep constant security control over the protected assets and allows us to immediately react to any potential threat. With the expertise of our technical department, we provide tailormade security solutions with our primary goal being quality implementation and fulfilling our customers’ wishes.

absolute confidence in the professionalism and diligence of our employees, we offer a 100% guarantee on all our candles.

Our vision of being more than business partner involves the strategy of an individual approach for each client, good planning, effective management and control processes, continuous professional development of our employees, efficient teamwork and above all, good communication with our clients. Our work is guided by our client’s needs, fulfilment of legal requirements, use of the best available scientific and other information, and constant review of the effectiveness of our actions. All this enables us to follow our mission as a company employing workers with disabilities - the synergy of business and a social cause. <<

Printing and candle production the synergy of business and a social cause Within PC printing, SINET provides clients services in printing, processing and manufacture of printed binders, boxes and folders. By integrating traditional methods of printing with the introduction of new technologies, as well as continuous development of new processes, we have managed to continuously grow our printing business which specialises in high quality and professional manufacturing of all kinds of brochures, magazines, books, monographs, catalogues, posters and leaflets, in small and medium sized throughputs. Our printing products are characterised by quality, competitive prices and short delivery times. With knowledge and experience in offset printing, bookbinding and finishing, we provide top quality products ensuring a comprehensive graphics solution and long-term business relationships with our customers.

PC Candle Production is the youngest of our profit centres although demonstrating the highest growth over the last three years. We produce tombstone paraffin and electronic candles which are entirely the products of our employees. Our specialty is the manufacture of loaded electronic candles that are encapsulated in a special slow - bonding plaster. The advantage of such candles is that they are heavier than the unloaded candles and consequently resistant to wind and they do not contain a printed circuit board meaning that moisture and dust does not affect their performance. Our paraffin candles are made from carefully selected white paraffin, which is adjusted to the season or outside temperature. Thus, combined with

03 01 SINET Alarm Response Centre was built to European Standard EN50518.

02 Only carefully selected constituents are used in candle production.

03 Air-quality measurement of stationary source emissions

SINET d.o.o.

Cesta 1. maja 83 1430 Hrastnik T: 03 565 40 21, E: info@sinet.si www.sinet.si

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>>BUSINESS SERVICES The Slovenian Convention Bureau was set up in 2004 to promote and market Slovenia as a meeting and incentive destination and to attract international meetings and business to the country. This non-profit organisation is a useful source of expert and objective information on destinations, meeting venues and service providers. The Slovenian Convention Bureau acts as a professional intermediary between meeting planners and suppliers, assisting organisers to select the most appropriate solution for their event.

The 50 plus members include convention centres and meeting hotels, PCO’s, DMC’s, local convention bureaus and other service providers that are an important part of an event. <<

Piran peninsula; Photo: Űbald Trnkoczy

We live as we say. You come as a guest and leave as a friend.

Slovenia – your green

meeting destination Despite Slovenia being on the world congress map for more than two decades it is still regarded as a new destination. Novelty can also be regarded as one of its unique selling points. Why? Clients are always looking for new destinations. Those that come and experience Slovenia often say that it is a hidden European treasure.

The Republic of Slovenia lies at the heart of Europe, where the Alps and the Mediterranean meet the Pannonian plains and the mysterious Karst. The country enjoys an excellent climate for meetings, there are literally four seasons. The air distance from the majority of European capitals does not exceed two hours flight time and the international airport of Ljubljana is located in the middle of the country with highway connections to all sides of the country and less than half an hour to the capital city of Ljubljana. There are also several international airports in all of the neighbouring countries making Slovenia even more accessible.

Green is the dominant colour of Slovenia. More than half of the country is covered with woods. Mountains, lakes, waterfalls, forests, caves, hills, plains, rivers, thermal springs and the sea - you 54

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name it, we’ve got it in the 20,273km2, as well as many natural and landscape parks making Slovenia an attractive meeting and in particular, incentive destination.

Slovenia is a compact country but rich in geographical diversity and cultural heritage. Superb meeting facilities spread across the country combined with excellent service and hospitality enriched by exquisite cuisine and excellent wines and good value for money are also important ingredients for a successful event.

The meeting locations spread across the entire country allow an array of choices, no matter what the preference - the enchanting capital, Ljubljana, an alpine setting, the Adriatic coast, a wellness resort or one of the historic towns with their authentic character. Slovenia offers meeting and conference venues catering for events of every size up to 2,000 delegates.

Lake Bled – awakening; Photo: Franci Ferjan

Slovenia's capital, Ljubljana; Photo: Janez Kotar

For more information: Slovenian Convention Bureau Dunajska cesta 156, 1000 Ljubljana, Slovenia Tel: +386 1 569 12 60 Director: Mr Miha Kovačič, miha.kovacic@slovenia-convention.com

SLOVENIA MEETINGS Feel the people.

Taste fresh ideas.

www.slovenia.info

www.slovenia-convention.com

>>EDUCATION OVERVIEW

Knowledge is the essence of progress

By Medeja Kenda

Slovenia can boast of a key resource â&#x20AC;&#x201C; a well-educated population.

What is still needed is a supportive environment which will direct the knowledge to jobs and further development.

When local managers were asked to indicate the most attractive factors for business in Slovenia, the skilled workforce and high level of education were high on the list.

The data from the Eurostat Labour Force Survey, 2010 indicates that over the last 15 years, the number of students has more than tripled in Slovenia. 84% of adults aged 25-64 have finished high-school which is higher than the OECD average of 75%.

Furthermore, 94% of those aged 25-34 have earned the equivalent of a high-school degree, which again is higher than the OECD average of 82%. This is good for Sloveniaâ&#x20AC;&#x2122;s future, particularly the share of younger people.

Higher education is a priority for Slovenia and it is above average when compared to other European countries, despite a high percentage of students who either do not finish or take many years to complete their studies.

From research by the Statistical Office of the Republic of Slovenia (SORS), it is apparent that the number of graduates in 56

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tertiary education is on the increase.

Tertiary education includes higher vocational college education and higher academic and professional education.

In 2012, 20,596 students graduated.

Considering the types of education, a trend can be noticed over the last 10 years, those studying Social Science, Business and Law dominate by more than a third followed by students of Engineering, Mathematics, Production and Processing which are gaining students each year. For the last five years, 50% of students are aged between 19 and 24.

Adults tend to learn throughout life, attending open universities, education and study centres, schools and higher education establishments. Courses are also common; mostly organised by companies, administrative bodies, organisations or

Photo by Shutterstock

societies. Therefore, life-long learning may be organised both within, as well as outside, schools in an informal way.

Furthermore, transnational education is common. This refers to a Slovenian education provision offered in other countries. Students have the option to experience a study exchange, attend summer schools or language courses in Slovenia or a foreign country. The number of international research projects of the European Union, with which Slovenian universities have cooperated, is increasing as is short and long term mobility.

According to SORS, in the last five years more than 4,000 inhabitants have relocated to Slovenia with a minimum of a higher college education level. On the other hand, at least 1,000 Slovenian citizens between 25 and 44, with at least tertiary education, emigrated to foreign countries.

Moreover, international studies rank Slovenia at the top in Europe when it comes to foreign languages with 89% of the population able to communicate in at least one world language. English, which is the most popular, is followed by German, Italian, Croatian and/or Serbian, French and Spanish.

Furthermore, there are three private international schools in Slovenia: British, American and French which together offer preschool, primary and high school programmes and therefore provide a high quality international education in English and French. There are also four public Slovenian schools offering education in primary schools, as well as a high school degree. Youth from all over the world attend these schools, mostly from Europe but also from Slovenia, America, Asia or Australia.

Following European standards and guidelines, Slovenia established an independent National Agency for the Quality of Higher Education. The Agency is active in various joint projects, assessment of joint study programs, expert exchange, organisation of conferences on the quality of higher education and higher vocational education in exchange of best practice.

However, while the number of highly educated people is increasing, education at the tertiary level is still insufficient in terms of the needs of society. In this regard, Slovenia lags behind the most developed countries of the European Union.

Considering all the skills and knowledge gathered in Slovenia there is potential for the country. Not only is the first Slovenian satellite going to be

launched but also pharmaceutical laboratories are gaining in research.

Slovenia is proving they have their own knowledge and many projects are waiting for their moment to bloom. <<

Higher education is a priority for Slovenia and it is above average when compared to other European countries, despite a high percentage of students who either do not finish or take many years to complete their studies.

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>>EDUCATION Q When and why did you decide to enrol in a doctoral programme?

A The decision to study for a Ph.D. had been ripening for some time. I had been thinking about it since completing my master’s and had been discussing the possibility of continuing my studies at the highest level within the standard doctoral programme, yet I felt that something was missing. I had been building my career in the world of business, somewhat away from the academic sphere and what I desired was not only to work on a doctoral dissertation and the underlying research, I wanted an approach that, in addition to the research possibilities, would enable me to acquire a broader spectrum of knowledge of academic activities. I wanted to learn the principles, methods, tools and not just the philosophy of science which constitutes the framework of every academic pursuit.

Q What guided you in your decision to study and what did you miss?

A The turning point in my decision was

Samo Javornik, Ph.D., doctorate holder from the Faculty of Economics, University of Ljubljana

actually the introduction of the Bologna system for doctoral studies. In the traditional doctoral programme, those students who weren’t from the academic community were ‘sentenced’ to quite a narrow choice of people to advise and help with their research. In my opinion, that sort of approach wasn’t broad enough in the sense of research and an academic milieu, which I believe is an important part of this type of programme. The Bologna system introduced educational programmes which involves the inclusion in a group of people who think alike and have similar goals. You simply become a part of a community within which you share your valuable experiences as well as your troubles and trials, which invariably get in your way in this demanding work.

Interview: Samo Javornik, Ph.D., doctorate holder from the Faculty of Economics, University of Ljubljana Q What were your expectations?

A Probably similar to the expectations of

After my doctoral

programme I…

all individuals who enter the academic world from the business world - somewhat naive but not in the negative sense of the word. The rules of the game and functioning were pretty different from my past experience. At the beginning, this might have felt like a minor cultural shock although, I must say, that along with my colleagues I quickly adapted to that way of thinking. When you accept a new philosophy and view of the world around you, everything changes into a very interesting life experience.

After studying at the Indiana University School of Business, Samo Javornik graduated and completed his master’s degree in the Business Politics and Organisation programme at the Faculty Q Did the programme achieve/exceed your of Economics and acquired his Ph.D. in the area of estimating the expectations?

A With the exception of the described value of intellectual capital. He has held the position of Member mind shift, the programme itself, as of the Management Board at Triglav Skladi since 2005. preparation for an individual research career, offered even more than I had been

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expecting. I was introduced to contents and spheres about which I had no knowledge of their existence. Research into unknown territories is a passion of mine which I always give in too.

Q What was the course of study, research, working with professors or mentors?

A In my opinion, the current programme offers students substantially more than the previous one. Enrolment in the programme introduces you to a social milieu of people who think alike and have similar ambitions as well as dilemmas. This social environment which, of course, includes professors and mentors, adds another dimension to the programme. You are never alone with your dilemmas. Colleagues, professors and mentors are always prepared to share their reflections and advice. Research, as I understand it, is not an activity in which one closes oneself off in a laboratory and after some time, already tired and greying, brings the genius outcome. The process of learning and research is a social process and interaction with the surroundings is an important part of the process which adds an important dimension.

Q Which competencies did the doctoral programme help you acquire/develop?

A The academic sphere is a rational

sphere, a world of causality, empiricism and hard facts. The rules of the game are strict and uncompromising, sometimes maybe too much so. In this world feeling, thinking or knowing something is not enough. You need to add the ability to prove to the world around you with scientific accuracy that your feelings and thoughts are indeed correct.

Q What goals did you set for yourself after finishing the programme?

A I have been cooperating for my entire career with the Faculty of Economics in various processes, mainly pedagogical ones. In this area, I took a big step forward by completing my studies. I am qualified to take part in research processes whilst the in-depth study enabled me to specialise in a specific area of economic science. In my case, that was researching intellectual potential or capital as the most important factor for creating value added in the modern economy. The discoveries made in my research work have both an academic dimension and practical usability.

Q What was your first job after you completed the doctoral programme?

A Acquiring a PhD has not meant a big step in a different direction from what I had already been doing. I could say it added a new dimension to my existing way of functioning and thinking. For the last ten years I have been working in investment

management which is very closely connected to the scientific approach to researching trends in capital markets. The knowledge I acquired in the doctoral programme has helped me become better at what I had already been doing. However, it has to be acknowledged that an academic title puts a slightly different spotlight on the person in question. It adds to their credibility and indicates a personal characteristic of being willing to invest a lot of energy and to overcome countless obstacles on the way to achieving their goals. These are characteristics that significantly expand the potential area of activity in life.

Q Did you need qualifications or to develop competencies in addition to those acquired in the programme after completing your studies?

A Education is a lifelong process. It is the train which you can’t and mustn’t alight from. Knowledge is becoming obsolete faster these days than ever before in the history of humankind and if you persist on the path of personal development you get rewarded, not only in the material sense.

Knowledge is a cumulative and non-linear process in which you are continuously adding to knowledge and experience acquired in the past and if one is persistent and broadminded on this journey, then this acquired knowledge gradually transforms into life wisdom which one can share with the world around them. If I try to describe this in a jokey way: a smart person knows that a tomato is a fruit, yet it takes a wise person to know that it is not to be added to a fruit salad.

(FELU) is comparable to the best doctoral programmes in EU countries in both structure and organisation. In addition, the FELU and its programmes have been awarded the AACSB and EQUIS international business school accreditations, placing the school among the 47 top business schools in Europe. <<

At the risk of sounding too stereotypical: knowledge is something no one can take away from you. I believe in knowledge, I believe that intellectual potential is what improves the world and I believe that in society there is always a place under the sun for those who know how and want to work creatively – whether that is in the academic sphere or work in practice.

Q Do you have any advice for future doctoral students regarding employment after completing the programme?

A At the risk of sounding too stereotypical: knowledge is something no one can take away from you. I believe in knowledge, I believe that intellectual potential is what improves the world and I believe that in society there is always a place under the sun for those who know how and want to work creatively – whether that is in the academic sphere or work in practice. The doctoral programme and the acquired title significantly broaden career options. It is true, however, that it resonates completely differently if a man travels through life with the philosophy "I have a dream" as opposed to continually repeating the motto "I have a plan". The latter just doesn’t sound particularly appealing and convincing.

Q How would you rate the doctoral programme at the Faculty of Economics?

A The doctoral programme of the Faculty of Economics at the University of Ljubljana

General information about the programme can be found on the FELU’s website (www.ef.uni-lj.si).

Please note that at the FELU the application deadline for doctoral studies is 20 June 2014.

University of Ljubljana Faculty of Economics Kardeljeva ploščad 17 1000 Ljubljana, Slovenia T: +386 (0)1 5892 400 F: +386 (0)1 5892 698 E: info@ef.uni-lj.si www.ef.uni-lj.si

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>>EDUCATION Interview: Professor Danica Purg, President, IEDC-Bled School of Management

Excellent leaders

are responsible for the society at large

By Tina Drolc, M.Sc.

Professor Danica Purg is the president and founder of the IEDC-Bled School of Management, recognised as the "School with the view". As the pioneer of an innovative approach in the art and leadership education process, IEDC-Bled School of Management encourages business leaders to act as competent and ethically responsible transformational leaders in their organisations and society at large. More than 50 renowned visiting professors from the best European and North American business schools closely cooperate with numerous local and international management consultants to successfully link the interaction of contemporary management theory and practice.

01

Q Bled is known as the biggest Slovenian tourist attraction, however there is increasing interest in visiting Bled for educational reasons. The IEDC- Bled School of Management has been recognised as the "school with the view" which does not only apply to its location. Can you share with us the leading values of your institution?

A The name "School with the view" we took from the Financial Times, from a journalist who wrote an article about us. I said to myself, "this has a double meaning; IEDC-Bled School of Management is a school with a view and also a school with a 01 IEDC-Bled School of Management 02 Professor Danica Purg, President of IEDC-Bled School of Management 03 IEDC-Bled School of Management

02

vision". Our differentiation from other schools is that we educate with an impact.

People who come here change their views and attitudes â&#x20AC;&#x201C; and you can change only if you are emotionally engaged. For this reason we have many seminars on experiential way. One, for example, was in Sarajevo. Firstly you can enjoy the beauty of the place but then the misery of the people is felt. I brought some of the top leaders from BAE Systems and from the Dutch insurance group Achica to Sarajevo. They interacted with the people who had lost their family and friends in the war. They were talking intimately about leadership to artists, business leaders and NGO representatives. After this deep experience they were able to change their mindset and leadership style. So that is the proof for the essence of this type of education, they really started thinking outside the box.

They recognised that their life and work should have a meaning and is not as difficult as it is for many of the leaders who they met, for instance, in Sarajevo. One of the main values of IEDC-Bled School of Management is to educate and develop responsible leaders who lead in a different and better way. Every leader is responsible, not only for his or her own company but also for society at large.

Thatâ&#x20AC;&#x2122;s why the three main pillars of our educational process are sustainable development, art and leadership, together with ethics and corporate governance.

Q IEDC-Bled School of Management is also well known for its transmission of knowledge.

Different cultures are intertwined through mutual respect and also through art.

A It is becoming more and more recognised and I can say that we are really at the cutting edge of this. The 60

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Copenhagen Business School is famous for its art and leadership research but in art and leadership teaching we are probably number one in the world. When you combine research and teaching with the art of leadership in the educational process, it is very powerful. Next year we will organise an international conference on art and leadership. We will bring together 50 top professors of art and leadership to see how far you can go and how deep you can reach into such a process. In our process of education in art and leadership, we try to see the impact that music has (our way of listening) on our response. Do we respond immediately and abruptly or do we put ourselves in the shoes of those who are telling us something?

Is noise our only reaction to the beautiful music or do we exercise responsible listening and responsible reaction? These are the big questions. We try to show the students where the change in a Beethoven sonata occurs. When you "attack" students with texts, words, music and pictures, they become better observers. As a consequence they become more reflective and think more broadly. After concluding his MBA study, one of our students said, "When I came home, my family said that I became a better human being". So the inspiration is the most important. In these difficult times, society needs inspired leaders. First you need to be inspired yourself to inspire other people that nothing is too difficult for them, that they are ready to go for something, for instance for change.

Q The European Leadership Centre (ELC) has operated at IEDC-Bled School of Management since September 2002. The main focus is to promote leadership excellence among European leaders. How would you describe, as President of ELC, the operations of the Centre and the results that have been achieved since its inception?

A The main idea behind establishing ELC was to build our image in the broader European dimension. Secondly we wanted to bring together business, political and NGO leaders. They did not have the dialogue which is needed for good leadership where all stakeholders need to be connected in the idea of creating something that is good for society in the future. On that basis, we decided to organise annual conferences and research to bring these people together and get a new dimension on this discussion. We have discussed topics such as public - private partnerships leadership issues in the media, freedom today and the influence of the market economy on them. We have hosted The Open Society Foundation (OSF), created by philanthropist George Soros, which brought such a new dimension. We have also had conferences in some countries, such as

leadership challenges in cooperation with Russia and Turkey. We brought a lot of people from these countries to Slovenia.

This year we will organise a conference on regional cooperation. We believe regional leadership cooperation, in general, should be stronger. We should also develop tourism together with Carinthia and the northern part of Italy; these are great regions in Europe!

Among the participants of the ELC events are some of the leaders of top European companies such as Olivier Bouygues, Chairman and CEO of Bouygues Construction from France; Riccardo Illy, Illy Group President from Italy, and academics including Belgium Professor Pierre Casse from Skolkovo, Moscow School of Management, and Professor Derek Abell from ESMT Berlin.

These individuals are also co-creators of the ELC.

Q Recently Springer published your new book on Innovation-Technology Management. This book presents the hidden champions of Central and Eastern Europe (CEE) and Turkey that have been studied through their political systems, cultures and infrastructure. What is the main outcome of the research and who are the hidden champions in Slovenia?

A The book presents the hidden champions in CEE and Turkey that were studied as a joint project between the International Association for Management Development in Dynamic Societies (CEEMAN) and IEDC-Bled School of Management, Slovenia. It was a great success that the research was published by Springer. The research covered 185 innovative companies and the fact is that Slovenia is among the leading countries when it comes to innovation. Slovenia has 16 innovative companies and two million inhabitants, Sweden has two innovative companies per one million of population.

We used a special research methodology to study the companies that many academics are interested in because nobody has had a good experience with international research. The book reveals hidden champions in the 15 countries: Albania, Belarus, Bosnia and Herzegovina, Croatia, Estonia, Hungary, Latvia, the Republic of Macedonia, Romania, Russia, Serbia, Slovakia, Slovenia, Turkey and Ukraine.

03

world. IEDC-Bled School of Management is also a hidden champion. The problem is that, in Slovenia, mostly negative stories are reported and therefore the role of the media is very important. It is important to find out who is really good, not who is really bad. This is a little bit in the nature of Slovenes who are now stimulated by all the things that are going on. However, I still love to live in this country and I think that Slovenia has a big perspective as does Europe. The best universities and many premium things are still from Europe and we do not need to think that we should change and become like China. They can be quick and they can be cheap because they donâ&#x20AC;&#x2122;t respect the labour rights. The aim of every system is that people live a good life, that they can be creative and that they learn and earn through innovation. So society should go in the direction that everybody will have a decent life which could be reached through innovation and not through long working hours and child labour. This is where Slovenia has a chance.

I think we should not be afraid of foreign managers. It is good to have them if they are the best professionally; most of them are and some of them are not. We should be critical and really look for the best people from around the world, bring them together and create so-called "metanational companies". These are multinational companies, built from the composition of the best competencies worldwide. I believe in international cooperation where you bring not only capital but also the knowledge. Sharing knowledge and positive thinking is somewhat lacking in Slovenia. <<

Q It seems that there are a lot of successful Slovenian business stories however, only a small group of people are aware of this. The general business climate in Slovenia has negative connotations with the dominate mindset "that only foreigners can help us".

A Hidden champions are companies that are number one in one market niche in Europe and the second or third in the

IEDC-Bled School of Management PreĹĄernova 33, 4260 Bled Slovenia T:+386 4 57 92 500 F: +386 4 57 92 501 E: info@iedc.si www.iedc.si

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>>EDUCATION

The British International School of Ljubljana

To be the best possible

BISL’s approach is rooted in the best of the British and International education systems, providing a modern, relevant and appealing education in English, which maintains a careful balance between tradition and innovation, taught by bilingual or native speakers, with courses in Slovene language and culture. The approach emphasises learning for real understanding and learning how to learn, rather than just memorising facts. As part of this process, on-going assessment for learning as well as of learning is used.

The school opened in September 2008 with 22 students in 6 classes and now has around 180 in 14 classes.

BISL will remain independent.

The school has not applied to the Ministry of Education, Science and Sport for a "concession" and it is not, therefore, subsidised by public funds either from the UK or Slovenia. Therefore it is able to maintain flexibility through its independence. Accountability of the school is directly to the families. Nevertheless, the Slovenian Ministry of Education has prepared a legislation proposal to govern international schools in Slovenia. The draft has just gone into public consultation so the law should be in place with 1 September 2014. This will represent a huge step forward for all Slovenian families with children of compulsory school age since they will no longer have to observe the home-schooling arrangement and will be able to enrol into any international school without additional requirements.

BISL assures quality by membership of internationally-recognised professional bodies such as COBIS and CIS. As a result of a successful inspection by ISI (Independent School Inspectorate) in March 2013, they are proud to be one of the small number of Accredited Members of COBIS (Council of British International Schools). This confers formal recognition from the UK Government, on the basis of which BISL expects recognition from the Slovenian authorities to be forthcoming as 62

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soon as they have legislation in place.

The school is also a Regular Member of CIS (the Council of International Schools).

As a result of their first inspection in October 2008, they are approved by Cambridge International Examinations (part of the University of Cambridge Assessment Group) as a Cambridge International School - the first in Slovenia.

In September 2010 BISL has been approved as a centre for AQA/JCQ, which enables them to offer all UK qualifications. They also offer the USA PSAT and SAT tests (University entry requirement in the USA) to any student who would be interested.

In the words of the Principal, Mr David Cooksey – "I want BISL to become a beacon of excellence, not just in Slovenia or in Europe but internationally and not just academically".

BISL has gained a credit rating of AA which represents excellence, an operation without liquidity issues and an overall above average returns. By achieving such a standard, it is the only organisation out of 59 in its registered branch to achieve such an internationally recognised AA standards within the educational sector in Slovenia.

The school will move premises in June 2014 to a new location by Dolgi most in Vič. The school will be housed in 2250 m2 in one of the most technically advanced buildings in Ljubljana and plans include state of the art science facilities and a rooftop Art department. As well as dedicated Sixth Form facilities, a dance and drama

studio and music room, the school will have 900 m2 of outside play area and the new building and grounds allow scope for further expansion of the school in the future. <<

British International School of Ljubljana Podmilščakova ulica 24, 1000 Ljubljana Slovenia T: +386 (0)40 618 356 E: admissions@britishchool.si, www.britishschool.si

>>IT

Simplify everything, so we can do anything As the market leader in enterprise application software, SAP helps companies of all sizes and in all industries to run better. SAP is at the centre of todayâ&#x20AC;&#x2122;s technology revolution, developing innovations that not only help businesses to run like never before but also to improve the lives of people everywhere, by simplifying everything, so we can do anything.

Simplicity is now table stakes in business

Organisations around the world are entering a new era of business model innovation, driven by the convergence of cloud, mobile, social, and in-memory technologies.

However, businesses are often content with the layers of IT complexity that have been built up over decades. Due to the complexity of the current consumption model, customers are not able to respond rapidly enough to changing market conditions. At SAP, we believe that simplicity in business is no longer an option. By solving the problem of business complexity, our customers can unlock their innovation potential. SAP is committed to leading this simplification. It is our responsibility to be conceptual leaders in changing how business is done in the future.

This is a great time to challenge previous thinking SAP HANA - In-memory breakthrough technology With Big Data, the problem of everincreasing complexity has not often been addressed. Significant competitive advantage awaits early adopters of this phenomenon. SAP in-memory computing is a breakthrough technology that enables the analysis of very large, non-aggregated data at an unprecedented speed in local memory. Since all the detailed data is available in the main memory and is processed on the fly, there is no need for aggregated information and materialised views which fundamentally simplifies the architecture, thus reducing latency, 64

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complexity and cost. In business terms, this means that complex analyses, plans

and simulations can be based on realtime data and made available immediately. Until now, people had to

choose between speed or a more granular picture of their business. Customers can now look at information at any level of detail and in real time.

By going beyond the constraints of traditional IT architecture, SAP HANA has started to deliver staggering new levels of performance for customers, ranging from not just 10 or 100 times faster, but quite often 1,000 times faster, occasionally 10,000 times faster, and in very special cases more than 100,000 times faster.

SAP Cloud Cloud computing has now become mainstream and is a widely accepted delivery model. The cloud offers an unprecedented opportunity to simplify software delivery and speed to value, as customers have immediate access to innovation.

Companies are seeking to invest in the cloud with the vision of the cloud becoming their innovation platform. By restructuring their processes and with better insights, they can run their business in an entirely new way. They are looking at broader cloud processes and expect these applications to look, perform and seamlessly interact with each other on a common cloud platform that unifies all their applications, data and business processes for a unique user experience. As companies accelerate cloud adoption in 2014 and beyond, they are not replacing everything but looking to extend their existing technology investment.

At SAP, we need to be in the driverâ&#x20AC;&#x2122;s seat to demonstrate that the best cloud portfolio we offer to our clients is the best for us as well. By driving change at SAP when utilising our own cloud technologies, we become our first and best reference customer.

The SAP Cloud powered by SAP HANA is the broadest cloud portfolio in the industry. More than 36 million users work with our solutions in the Cloud and approximately 1.4 million companies have more than US$5,000bn of turnover in goods and services through our cloud-based Ariba Network.

CIOs â&#x20AC;&#x201C; drive the change!

The demands of end customers are shaping IT strategy and the workplace of the future will be mobile. For this, the role of the CIO is changing from functional to a more strategic innovation and business enabler, the "Chief Innovation Officer". The new CIO has to stay ahead of the trends and make sure that employees can take advantage of new technology quickly, so that the company stays competitive and embraces its growth potential. SAP CIO Bjorn Goerke explains his new role: "I am expected to find ways to come up with new methods of using technology to create new business opportunities and find out how IT contributes to the bottom line." <<

SAP Slovenija Dunajska 165, 1000 Ljubljana, Slovenia T: +386 (0)1 3072 022; F: +386 (0)1 3072 015 E: info.slovenia@sap.com www.sap.com/slovenia/

>>LIFESTYLE Q What was your first reaction when you found out you were moving to Slovenia?

A I knew very little about Slovenia prior to moving there, maybe just the basics. Every time I move to a new country, I buy books about my new country assignment, surf the Internet, Wikipedia etc. to try to discover the history, the geography, the culture and the tourist spots. I enjoy discovering new territories but always take the time to learn prior to the move. I did the same for Slovenia as I had for my previous assignment in Belgium and now my new one in Australia. I learnt from the books I bought and read, listened to my colleagues from Goodyear but I have to admit that my knowledge was pretty limited. I also like to keep a bit as a surprise! I believe the best way to learn about a country is to live in the country.

Q And then - what were your first impressions? Were you surprised?

A A love at first glance ….. For me who

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Interview: Thierry Villard, former Managing Director of Goodyear Dunlop Central and Eastern Europe

Home away from home

By Polona Križnar

likes nature and true people, it is a beautiful country to live with a manageable size, a rich history, a lot of traditions and fantastic people! I felt very welcomed by all the people I met either in Goodyear or the American Chamber of Commerce or the press. You quickly assimilate yourself, you just have to adjust to the small size of the country where everybody knows everybody, where two cars waiting in front of you at a traffic light is a “traffic jam” and where you can enjoy the mountains and the sea within the same day. I was also very impressed by how fit the people are and how they take care of themselves.

Q You were here three and a half years.

What would you say now?

A I have said on many occasions and I still feel it – Slovenia was, in a way, a home away from home for me. Despite my family roots in my home country I always had that very nice and warm feeling, when landing at Brnik airport returning from my different trips across my Central European region, that I had come back home.

Among all my various assignments around the world, it had never before been the case!!! You have an amazing, safe and very peaceful country, full of natural beauty, good food and good wine and a fantastic quality of life.

“It was love at first glance,” says Thierry Villard, former Managing Director of Goodyear Dunlop Central and Eastern Europe, when talking about Slovenia. Villard is French with a rich international career at Goodyear, Kodak and Danone. As the charismatic manager at Goodyear Dunlop for more than three years, he managed to achieve and retain a strong position in the market, Goodyear is now one of the most successful foreign investment stories in Slovenia. At the end of 2013 he moved Q How would you describe the people?

The people, especially the younger to Australia but still remembers Slovenia. He talks about how A generation, is very friendly and open and he was able to combine his business career and enjoy the best almost everybody speaks English, so it's of Slovenia, sharing his experience about living in Slovenia, his really easy for foreigners to fit in once they accept the cultural differences with their motorcycle travel and his admiration for the country, the people home countries. I do not have any bad and the food and wine. memories from Slovenia and I was able to connect with so many people in a very short time. For some reason I had the

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opportunity to connect with many of the younger generation in Slovenia, either through Goodyear or through the fantastic AmCham Young Professionals or through the YPSILON Institute program, and I must say that I was impressed by the energy, the positivity and the willingness for change from those youngsters. Those guys are shaping the future of Slovenia and they will rock the boat - the Nina, Žiga, Hana, Tanja, Ana, Ajša, Gregor, Katja, Primož, Tomaž - I have met all these fantastic people and future leaders. They only need to get the broader picture and embrace the world to come back stronger in their beloved country.

Q Are people in Slovenia more reserved than, for example, people from France or the western world? If so, how do you get used to it?

A I don't think Slovenians are, in general, more reserved. In fact, I found people quite the opposite. Like I said before, almost everybody speaks English which makes interaction even easier than in some of the other countries I've lived in. You are also very hospitable and are not shy to let somebody into your home, to invite them for a coffee. You definitely know how to make people feel welcome.

Q Can Slovenians make fun of themselves?

A Not everybody. Probably the youngsters are less formal and can make fun of themselves. Probably less so the more senior generation and I understand that.

Having said this, I believe that there is something Slovenes of each generation have to change and that is the overall feeling of negativity which is in fact, pretty well entertained by the media. I believe it is necessary to look on the bright side of everything rather than focusing on the negatives. No one should ignore the dark side of the coin but it should not be exaggerated and amplified as is sometimes the name of the game in Slovenia. Spend time on solving the issue, not on finger pointing as to who is responsible.

Q You saw Slovenia from your motorcycle. Is Slovenia a paradise for motorcyclists?

A As an enthusiastic motorcyclist, I did drive around Slovenia and the neighboring countries as often as possible on my fantastic Dunlop tyres and my beloved Honda Goldwing. The country certainly has some of the best mountain roads like Vršič, Wurzen-pass, Ljubelj and many others. My best itinerary for a Sunday ride was Ljubljana – Logatec – Tolmin – Kobarid – Vršič - Kranjska gora - Dravograd through Austria - Maribor and back. A great 600 km experience!

Q Do you remember any anecdotes from your travels around Slovenia?

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A Stopping in some restaurant in the very rural Soča river area, trying to order food in Slovene, English or German to finally realise that the waiter was French ….

Q If you choose a highlight from your time in Slovenia what would it be?

A Triglav!!! I unfortunately did not manage to go to the top of your iconic summit which is another reason to go back one day. Jokes aside, I would probably highlight the fantastic Goodyear Slovenia team and all the great times we shared as well as my involvement with the AmCham programs for young talent.

Q What can you say about the lifestyle in Slovenia compared with other countries you've been?

A Slovenia is definitely a great place to live because of its geography - you can go mountain climbing and swimming on the same day – not many places offer that.

Again, I need to emphasise the quality of food and wine, as it's really great. Also, the country offers a good work-life balance. I've worked in many countries before and in that respect, Slovenia is definitely among the top places to live. However it seems that Australia, where I am living now, is also pretty competitive to Slovenia.

Q What did you tell Mr Pryczek, who is now the Managing Director of Goodyear, about Slovenia?

A That I have no doubt that he will enjoy his time there. Not only because of the team but also because of the country itself and that I hope he has even more time to explore it than I did. <<

03 01 Villard was traveling around Slovenia.

Here are some of his memories from Bled.

02 As an enthusiastic motorcyclist he drove all around Slovenia.

03 “I still did not manage to go to the top of Trigalv which is another reason to go back one day,” Villard said.

I have said on many occasions and I still feel it – Slovenia was, in a way, a home away from home for me. Despite my family roots in my home country I always had that very nice and warm feeling, when landing at Brnik airport returning from my different trips across my Central European region, that I had come back home.

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>>LIFESTYLE

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Shining Olympics for slovenian sport… but how bright and for how long?

By Igor Evgen Bergant

The performance of Slovenia at the 2014 Winter Olympics was the entire country’s dream come true: medals – some expected and some not –poured in. Its heroes, dressed in snowy white, sky blue and almost electric blue, shone in the medal plaza at the Russian holiday resort, turned global winter venue, of Sochi.

Double Olympic Champion, Tina Maze, 2012’s queen of alpine skiing, exploded after a slow start to the season to reach the pinnacle of her extraordinary career. She cemented her status as the top Slovenian winter, as well as female, athlete according to a survey by Sporto Magazine, the leading sports marketing publication in the region.

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But back to Sochi where ski jumper, Peter Prevc, took off on probably his long ascent to the brightest stars of his sport by reaching silver and bronze. Žan Košir, a snowboarder, followed him with the same combination of precious metals and biathlete, Teja Gregorin and cross country sprinter, Vesna Fabjan, added a bronze medal each to the best Olympics ever for Slovenia.

There were more brilliant achievements although without a podium finish. The men’s national ice hockey team had a sensational run into the quarter finals of the prestigious tournament, representing a country with less than 100 professional players and only one NHL star, LA King’s Anže Kopi(S)tar.

Team Slovenia at the Olympics (unsurprisingly) caused euphoria in a country where sport is generally considered one of the cornerstones of its identity abroad. But is Slovenia actually and broadly too good to be more widely internationally recognised?

The fact is that a country of two million produces a relatively large number of sporting champions in various sports and per capita, regularly outperforms in national team competitions in various ball games and in ice hockey. It is almost amazing how widespread the assets of Slovenian sporting success are. At the Sochi Olympics the medals were won in five different sports, as were the five medals at the 2012 London Olympics. The men’s national football (soccer) team reached the 2010 FIFA World Cup group stage in South Africa as one of the 32 participants, the men’s national handball team were fourth at the 2013 IHF World Championships and the men’s national basketball team were fifth in the Slovenian hosted FIBA EuroBasket (European Championships) in the same year. In individual sports Slovenian women are definitely not behind when it comes to success.

Due to its relatively good infrastructure, tradition and sporting culture, Slovenia can be proud of the extremely wide spectrum of its success in

sport however, global stars are rare. In the North American NBA, the Phoenix Suns’ guard Goran Dragić was this year recognised as the NBA’s most improved player by a landslide vote. His time is definitely coming but there are no other up and coming Slovenian NBA players. There were times when there were five, when Rašo Nesterović and Beno Udrih won the NBA title with the San Antonio Spurs in 2005. Former LA Lakers’ shooting guard, Aleksandar “Sasha” Vujačić, left his mark but spoiled his domestic popularity by refusing to play for the Slovenian national team. Dragić however is different: the global power of the NBA could boost his national and global popularity and match the international praise for Anže Kopitar in the world of ice hockey.

In the world’s most popular sport, football (soccer), there are some Slovenian individuals who earn respect, in particular Samir Handanović, the goalkeeper of the famous Italian side Internazionale from Milan. The Slovenian national team has so far made three prodigious appearances at major events – at Euro 2000 and two appearances at World Cups including the 2010 tournament but the market(ing) value outside Slovenia’s borders is limited.

As is the strength of the most powerful Slovenian brand in team sport, according to Sporto Magazine, the 12 time national champion, NK Maribor. The “violets” made it to the knockout stage of the 2014 UEFA Europa League, the inferior continental club event, for the first time but the more prestigious UEFA Champions League group stage has so far remained a dream since the 1999/2000 season. The issue is that NK Maribor, with its wise HR policy which generally means developing and then selling young players over the border, is an exception at the club level in more or less all team sports. Many of the most successful clubs in basketball (Olimpija Ljubljana), handball (Celje, Krim Ljubljana), volleyball (Volley Ljubljana) and ice hockey (Jesenice, Olimpija Ljubljana) are going through an extremely difficult financial period and sporting decline.

So, what next? Slovenia should take care of its rare starlets, promote its national teams and hope for a global sporting superstar. It may happen as Slovenia still has good infrastructure, attitude or sporting culture, which has positive effects on the quantity and quality of top and amateur sportsmen and sportswomen.

So, what next? Slovenia should take care of its rare starlets, promote its national teams and hope for a global sporting superstar. It may happen as Slovenia still has good infrastructure, attitude or sporting culture, which has positive effects on the quantity and quality of top and amateur sportsmen and sportswomen.

Slovenia should also continue to promote the hosts of traditional top events such as the Planica ski flying World Cup and alpine skiing events in Kranjska Gora and Maribor at the same level as the biathlon World Cup at Pokljuka. There are great possibilities to use and expand the infrastructure of the beautiful Lake Bled rowing centre. Of course, there is Slovenia’s landscape, with valleys and hills, so inviting for mass cycling events… Or the coastal region on the Adriatic Sea to host yachting events…

So, the global competition is massive but so are our chances! <<

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01 Tina Maze at the Sochi Olympics; Photo: STA 02 Peter Prevc at the Sochi Olympics; Photo: OKS 03 The Slovenian Ice Hockey team at the Sochi Olympics; Photo: HZS 04 Žan Košir at the Sochi Olympics; Photo: OKS 05 Vesna Fabjan & Teja Gregorin at the Sochi Olympics; Photo: STA 06 EuroBasket Slovenia 2013 mascot Photo: Aeropolis

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>>LIFESTYLE

Slovenia’s biggest events

By Mark Koghee

Festival lent – main stage on the Drava river

Ljubljana Festival 1 July-1 September

The vivid centre of the capital, Ljubljana, is extra festive in the summer months. In July and August the Ljubljana Festival brings stars from the opera, ballet and theatre to the city as well as rock and jazz musicians. The 61 year old Festival Ljubljana is Slovenia’s oldest festival.

Some highlights of the program this summer are the Vienna State Opera performing Così fan tutte, the Slovenian Philharmonic Orchestra, the Royal Concertgebouw Orchestra from Amsterdam and Evita, the musical.

In all of the four seasons, events liven things up in Slovenia.

Villages are coloured by the very local festivities of the fire brigades while the cities host events of international stature.

Highlighting some of the biggest events of 2014. Emona

There are many smaller events and concerts every week in Slovenia. For a selection of the best events, festivals and performances check The Slovenian Times magazine or www.sloveniatimes.com for an up-to-date event calendar.

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In 2014, Ljubljana will celebrate the birth of Emona 2000 years ago when the Romans started to build the city of Emona on the site of present day Ljubljana. This milestone will be celebrated with events and exhibitions. ‘Ave, Emona’, the main event, will take place on 22 -24 August when Kongresni trg and Zvezda Park will be transformed as it was 2000 years ago with Roman legionnaires, generals, gladiators, vestal virgins and natives.

Festival Lent 20 June-5 July

Maribor, Slovenia’s second city, will host the country’s largest outdoor event.

Festival Lent is one of the largest outdoor festivals in Europe running from 20 June until 5 July and attracting half a million visitors a year. The festival includes over 1,200 events held at 40 venues throughout Maribor. Key events include Folkart, Jazzlent, the street theatre festival Ana Destnica and street food festival Sladolent.

Metaldays 20-26 July,

Punk Rock Holiday 5-9 August

In summer, Tolmin is the host of two international festivals oriented to the more alternative scene.

Metaldays is a heavy metal festival in Sotocje which lies between the rivers Tolminka and Soča. Since the first event in 2004 the popularity of the festival has been growing.

At the beginning of August, punkers from all over the world gather at the same location. Punk Rock Holiday has grown into one of the major punk music events in Europe. Numbers for each festival is limited to 12,000.

Maribor Wine Festival 19-28 September

To honour the oldest vine in the world, a wine festival is held every year in Maribor at harvest time. It is the biggest tourist event in autumn with over 500 visitors.

The festival is for both connoisseurs and amateurs.

Slovenian Wine Festival

Sporting events

Maraton Franja; Photo: Mark Koghee

Ljubljana Marathon

Winter sports

The Ljubljana Marathon is the largest sporting event in Slovenia and features a full marathon, half marathon and a 10km run. In 2013, 22,000 runners participated.

• Snowboard World Cup in Rogla,

26 October

Maraton Franja

6-8 June and 28-31 August With time trials on Friday, a family ride on Saturday, and a 97km race and a 156km race on Sunday, Maraton Franja is the highlight of the Slovenian cycling season. At the end of August it will be repeated when the World Cycling Championship for amateurs will be held on the course of Maraton Franja.

Thousands of cyclists from all over the world are expected.

In winter, several ski World Cup races are held in Slovenia. Although the World Cup race dates for 2014/2015 are yet to be determined, the following events are expected: • Telemark World Cup in Bohinj,

• Biathlon World Cup in Pokljuka, • the Golden Fox alpine skiing World Cup in Pohorje,

• the Pokal Vitranc Alpine Skiing World Cup in Kranjska Gora

• the Planica ski jumping World Cup.

December in Ljubljana, festively adorned Prešeren Square; Photo: Dunja Wedam

21-22 November

The Slovenian Wine Festival is the largest wine-related event in Slovenia. Hotel and restaurant managers, journalists, winegrowers, oenologists and wine lovers attend the festival which is held at the Hotel Union in Ljubljana.

Festive markets In December the city centres are vibrant meeting places where concerts are held and people gather to have a glühwein and exchange New Year wishes. The festive fairs make the centres very lively and shouldn’t be missed when visiting the country at this festive time. << Business & Investment 2014

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04 01 A statue of the Emonan in the centre of Ljubljana represents the Roman past of the Slovenian capital.

Photo: Andrej Peunik/MGML 02 You can follow the Roman trail of Ljubljana and find the spirit of ancient Emona at the City Museum of Ljubljana and archaeological parks of Emona.

Photo: Andrej Peunik/MGML 03 The City Museum of Ljubljana prepared an attractive accompanying program to the Emona: a City of the Empire exhibition suitable for tourists, families and all history lovers.

Photo: Matevž Paternoster/MGML 04 Roman Emona, with a population of 3,000 to 5,000 people, stood on the left bank of the Ljubljanica River.

Photo: CtrlArt for MGML 05 The Emona: a City of the Empire exhibition displays for the first time, ever, several new important finds from the recent archaeological excavations in Ljubljana.

Photo: Matevž Paternoster/MGML

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The Romans are coming to Ljubljana!

According to an inscription stone dated to 14 or 15 AD, the Roman emperors, Augustus and Tiberius, had a large public edifice built in the city of Emona, the first settlement at the location of today’s Ljubljana. Archaeologists assume that they actually gifted the impressive and mighty city walls and based on this archaeological find, Ljubljana is celebrating the 2000th anniversary of the construction of Emona. The celebrations will take place during 2014 and 2015 and in honour of this venerable anniversary the City Museum of Ljubljana is preparing the Emona: a City of the Empire exhibition, on display from 30 May 2014 to 31 May 2015.

The focus of the Emona: a City of the Empire exhibition is the city itself as a key element in the functioning of the vast Roman Empire. Emona was one of the many cities that connected what was, at the time, the greatest system the world had ever seen. According to the author of the exhibition, Dr Bernarda Županek, PhD, "the colony of Emona – connected with other cities and Rome – was part of the machinery that propelled the Empire. With its universal form, architecture, way of life, laws and values, the colony nurtured its inhabitants into loyal

The Roman Empire, which in the second century consisted of 60 million inhabitants living in an area of 5 million square kilometres, relied on cities to sustain it. Those cities were much more than just an organising principle: they created a new way of life – the Roman way of life. They were the centres of power and privilege, culture and knowledge.

Cities were a part of the imperial ideology and scenes where the Empire showed its grandeur to its subjects. The Roman era was the time when cities first started to appear in the area of today’s Slovenia and this transformed the lives of the people who had been living there for millennia.

Roman citizens. Its rituals, rules and everyday practices strengthened the common political, ideological and cultural identity."

The exhibition displays, for the first time, several new important finds from

the recent archaeological excavations in Ljubljana. An honorary spot in the

exhibition has been reserved for the portraits of the founders of Emona: the Emperor Augustus and his successor, Tiberius. The bust of the former arrived from Rome’s Capitoline Museums, while the latter is from the Ptuj Regional Museum.

The exhibition also sheds light on the heritage of Emona which started to take shape in the 17th century and boomed in the 20th century. It exposes extensive archaeological excavations that took place in the second half of the 20th century with many artefacts, companies and projects named after Ljubljana’s Roman past. The author of this part of the exhibition is Irena Žmuc, MA, Head of the Department of Modern Age at the City Museum.

The Emona: a City of the Empire exhibition is accompanied by a series of events for adults, families, kindergartens and schools. Visitors can find more information on a special Emona subpage of the www.mgml.si website. The City Museum of Ljubljana also took a slightly different approach to the promotion of the central exhibition: go to www.youtube. com where you can see the Emona: a City of the Empire promotional film. <<

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A CITY OF THE EMPIRE EXHIBITION AT THE CITY MUSEUM OF LJUBLJANA 30. 5. 2014 - 31. 5. 2015 Welcome to Emona!

As the first town in the Ljubljana Basin built according to a plan, Emona is celebrating 2,000 years since its emergence. Emona was one of the cities which, at the dawn of our era, made up a then unprecedented system â&#x20AC;&#x201C; the Roman Empire. Covering an area of up to 5 million km2, the Empire depended heavily on its cities. Featuring a distinctive layout and promoting a new, Roman way of life that extended out to the borders of the then known world, cities were the hubs of power and privilege, centres of culture and knowledge. How did cities come to life? In which ways did they show off their monumentality? What in them attracted new inhabitants? Visit the exhibition at the City Museum of Ljubljana and discover the mysteries behind the ancient city of Emonaâ&#x20AC;&#x2122;s emergence and existence.

Vodilni partnerji razstavnega projekta / Lead partners

Partnerji / Partners

Medijski pokrovitelji / Media sponsors

>>LIFESTYLE

A country of many tastes

By Mark Koghee

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The tradition of winemaking in Slovenia is very old, starting thousands of years ago when the Illyrians and Celts brought grapevines to Slovenia.

A trip through Slovenia is travel through taste. With 24 gastronomic regions and three wine-growing regions the country bears a long tradition in food and wine making and offers many tastes to sample.

In Jakobski Dol in the Podravje wine region, Dušan Mulec checks the aluminium wine barrels while his father, Roman, looks out over the endless green hills which are covered with vineyards. Roman is teaching his son the secrets of winemaking. The knowledge has been passed from generation to generation for more than a hundred years and at every step, the tradition is complemented by the knowledge of a new generation. Wine making here is, as in many other Slovenian wine farms and in Slovenian cuisine, a tradition in development.

The tradition of winemaking in Slovenia is very old, starting thousands of years ago when the Illyrians and Celts brought grapevines to Slovenia. Slovenia’s long history in wine making is still touchable in the city of Maribor where the oldest grape producing vine in the world can be found.

Every year the grapes of the 400 year old vine are fermented and put into 100 small bottles.

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Maribor is part of the Podravje wine region in the east which is best known for its white wines. The speciality of the Mulec farm is a white wine made from blue pinot.

Laški Reisling, Chardonnay and Sauvignon are the other hits from Podravje. In the Posavje wine region, in the south, Modra Frankinja (blaufränkisch) is the speciality.

It is also home to the famous Cviček wine made from both red and white grapes. In Primorska, in the west, there are many excellent red wines such as Teran from the Karst or Refošk from Istria. Wine routes take visitors through the wine regions, past the vineyards to the winemakers whose cellars can be visited and wines, of course, can be tasted. On an international scale, Slovenia is just a small wine producer but the wines are of good quality. Of the wine produced in Slovenia 70 per cent meet the criteria for quality and premium wine.

Slovenian cuisine Quality is high in the Slovenian kitchen where fresh local

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For the most basic introduction to Slovenian cuisine, a visit to the Open Kitchen in Ljubljana on a Friday is a must. Next to the market, in the centre of the city, restaurants from all over Slovenia present a taste of their dishes from 8.00 in the morning till 8.00 in the evening from March until October.

From premium restaurants to market stalls; even the way the Slovenian cuisine is presented, there is something for everyone.

01 Orehova potica; Photo: STO 02 Vineyard - Podravje; Photo: STO 03 Čot žlinkrofi dumplings; Photo: Tomo Jeseničnik 04 Restaurant Strelec; Photo: D. Dubokovič 05 Restaurant Strelec; Photo: D. Dubokovič

products are used. With 24 distinctive culinary regions and many more dishes, the Slovenian kitchen is a varied one.

The country’s traditional dishes are rich in calories, usually quite simple, contain only products grown in the country and heavily influenced by neighbouring countries. In the north, Austrian influences have found their way into the Slovenian kitchen; in the east Hungarian; Croatian in the south; and in the west Italian influences.

Despite several unique Slovenian specialities, the Slovenian kitchen is, in a way, a fusion cuisine.

Slovenian cuisine started with simple dishes and has been developing with influences from other regions, other countries and other parts of the world. It is a continuous process with dishes being enriched while maintaining their Slovenian identity.

The most authentic Slovenian kitchen can be found in the many gostilnas throughout the country. These inns often serve regional dishes using local products.

The gostilna is the basis of Slovenian gastronomy where the traditional kitchen still triumphs. Štruklji (dough with a filling), žganci (buckwheat), cabbages and kransjka klobasa (sausage) are just a few of the many Slovenian specialties to expect in a gostilna, where these days pizza, pasta and a steak with fries are just as common.

There are only a few top-notch restaurants in the country, where lunch and dinner are more of an experience than a meal. Most of Slovenia’s top restaurants can be found in Ljubljana. JB Restavracija of master chef Janez Bratovz is undoubtedly Slovenia’s most profound restaurant. The restaurant, in Ljubljana, made the San Pellegrino’s Top 100 list of world’s best restaurants. According to Bratovz, the menu is based on the relationship between the four elements: earth, water, air and fire, representing four tastes – sweet, salty, sour and bitter.

Restaurant Strelec in Ljubljana castle is one of the newer restaurants. In the historical setting of the castle, Strelec offers its clients a taste of their ancestors’ food. Expect a selection of the finest traditional specialties from different regions of Slovenia.

For the most basic introduction to Slovenian cuisine, a visit to the Open Kitchen in Ljubljana on a Friday is a must.

Next to the market, in the centre of the

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city, restaurants from all over Slovenia present a taste of their dishes from 8.00 in the morning till 8.00 in the evening. From premium restaurants to market stalls; even the way the Slovenian cuisine is presented, there is something for everyone. <<

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>>TOURISM OVERVIEW

01

Record numbers

in the maturing tourism industry

By Mark Koghee

With a record number of visitors and revenue in 2013, the Slovenian tourism industry is continuing its upward trend. Oft described as Europe’s hidden gem, Slovenia is on the path to becoming a well known and recognisable tourist destination, but there still is a long way to go.

After being mentioned in several destination rankings of renowned travel publishers, the tourism industry in Slovenia soared to new heights in 2013.

The revenue from the sale of tourist services rose 0.4 per cent to a record EUR 2.1bn and the number of tourist arrivals rose 2.3 per cent year on year to 3.4 million. Tourism has been growing since 1999 and the expectation is that the growth will continue as Slovenia puts more effort into attracting more investments and tourists.

Currently tourism accounts for 12 per cent of GDP, a threefold increase from 12 years ago. The industry employs 45,000 people with an additional 12,000 temporary workers.

With over 500,000 visitors each year, Postonja Cave is Slovenia’s most popular attraction and it is also the most visited cave in the world. Bled, with its recognisable scenes of the lake, island and cliff top castle has become a trademark for Slovenia. The vivid and increasingly popular centre of the capital, Ljubljana, is a surprise to most visitors and the unspoilt 76

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nature across Slovenia is an attraction for the active tourist. However tourism in Slovenia is in its infancy. There are many projects awaiting investors and many improvements to be made to tourist infrastructure. For example, more accommodation and in particular more diversity in accommodation at both the top and bottom ends of the market would be welcomed. More diversity is something that Slovenia’s culinary world would also welcome, there are many restaurants but only a few truly top establishments. To find a restaurant open at dinner time on Sunday in Ljubljana requires a true expert! Boštjan Skalar, Director of SPIRIT, the agency responsible for tourism promotion, stated in early 2014, in an interview with press

agency STA, that more investment is needed for tourist infrastructure. There is work required on transport, accommodation and attractions. Slovenia is now the charming little country where some might still find the less developed parts of the tourism industry cute. But just being cute doesn’t cut if for the more demanding tourist or the tourist who wants dinner on a Sunday.

SPIRIT is trying to attract foreign investment in the sector. At investment conferences the agency noticed that Slovenian companies are still too heavily indebted to be able to invest. Currently only 0.67 per cent of foreign investments in Slovenia were for tourism in the last 10 years.

Slovenia is now the charming little country where some might still find the less developed parts of the tourism industry cute. But just being cute doesn’t cut if for the more demanding tourist or the tourist who wants dinner on a Sunday.

The Ministry of Economy has a long list of projects seeking investment including: • EUR 33m for a wellness centre in Tolmin, • EUR 10m to upgrade the Viktorijain Bled hotel to 5 stars,- EUR 120m for the Megalaxia family amusement park in Hajdina • EUR 2m for holiday homes in Gorenja Vas. In addition, there are also other investment opportunities including the Kanin ski resort on the Italian border which is closed in anticipation of a new owner. Also, as part of a large scale privatisation, the national airline Adria Airways is for sale as is Ljubljana Airport.

In comparison with other countries, Slovenia’s tourism marketing budgets are low. In 2014 there is EUR 5.5m allocated for tourism promotion. Slovenia has been trying to sell itself as a green destination with the slogan ‘I Feel Slovenia’. This year SPIRIT has decided to change the marketing strategy and focus on ‘first person storytelling marketing’. The agency wants to promote Slovenia as a tourist destination through personal stories about tourist experiences rather than use the traditional slogans and promotional texts.

Part of the new strategy is also to focus on new groups of tourists. Most visitors come from the neighbouring countries and western-Europe. For further growth, Slovenia is looking for tourists from the east: Russia, Turkey, Azerbaijan and Kazakhstan. In addition to attracting more tourists, the strategy is also to increase the revenue from foreign tourists from EUR 2bn in 2013 to EUR 3bn in 2016.

The strategies are there, now it’s finding the investments and Slovenia can continue on the path to a mature tourism sector. <<

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Tourist numbers Most visited attractions: 1. Postonja Cave 2. Bled Castle Museum 3. Ljubljana Zoo 4. Ljubljana Castle 5. Predjama Castle Activities: hiking, cycling, skiing, cross-country skiing, snowboarding, sledging, skating, cave trekking, climbing, golf, fishing, horseback riding, parachuting, hot air balloon flights, sightseeing flights, canoeing, rafting, kayaking, diving, boating, sailing, swimming, canyoning, water skiing.

Accomodation Hotels:. . . . . . . . . . . . . . . . . . . . 289 Campsites: . . . . . . . . . . . . . . . . . 57 Youth hostels:. . . . . . . . . . . . . . . 68 Holiday apartments: . . . . . . . . 692 Mountain lodges:. . . . . . . . . . . 155 Vineyard cottages:. . . . . . . . . . . 35 Natural health resorts:. . . . . . . . 15 Thermal spas:. . . . . . . . . . . . . . . 17 Museums:. . . . . . . . . . . . . . . . . . 64 Venues with congress facilities:. 59 Large congress centres: Brdo Conference Centre in Brdo pri Kranju, Festival Hall in Bled, Cankarjev dom in Ljubljana, Ljubljana Exhibition & Convention Centre Hotels with congress facilities: . . 3

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01 Ljubljana Castle; Photo: STO 02 Predjama Castle; Photo: Postojnska jama 03 Postojna Cave - Briljant; Photo: Postojnska jama 04 Bled Castle 05 Siberian tiger

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>>Tourism Interview: Ildiko Kiss, Manager, Air France KLM

Right price

for the right product for each customer

By Polona Križnar

In November 2014, Air France KLM will celebrate its 10 year anniversary in Slovenia. We talked with Ildiko Kiss, Manager, Air France KLM. She promises they will continue to offer the best products and services to Slovenian customers.

Q Will you develop a special offer for the occasion?

A Air France will definitely organise a special event and develop special offers to celebrate our 10 year anniversary in Slovenia. The Slovenian market is an important market for Air France and the objective is to continue to develop a strong relationship with our Slovenian customers.

Q What is the usual response to your promotions and special offers?

A Air France offers monthly “Flash Fares” promoting one destination at a very attractive price. In addition, our customers can benefit from discounts offered on our webpage, www.airfrance.si during a

your business travel solution BlueBiz is the AIR FRANCE, KLM, Delta Airlines program designed exclusively for businesses. With BlueBiz, your employees earn Blue Credits on a single account with every trip. 1 Blue Credit equals 1€.

You can use earned Blue Credits towards free flights and more, making the most of your company´s travel budget. You can enroll free of charge via www.bluebiz.com

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specific period. We also send out a weekly e-newsletter to our subscribers.

Q What has changed for Air France in the last 10 years in Slovenia?

A In the last 10 years the internet has become a key tool used by travellers to find the best products and services to meet their needs and expectations. Air France has adapted itself to meet those needs by implementing online check-in, boarding passes via SMS and electronic tickets. We have also developed our website, www. airfrance.si, to allow our customers to find all the information needed regarding products, services and prices.

Q You probably know the habits of your passengers. What are the criteria of choice when purchasing a ticket?

A Air France offers tailored products, services and prices to meet the expectations and needs of our customers.

Products and services: For long-haul flights, passengers can choose between the La Première, Business, Premium Economy and Economy cabins.

For short-haul, passengers can choose between the Business, Premium Economy and Economy cabins.

Prices: Classic and “MiNi” fares: From 25 April 2013, Air France has extended its range of “MiNi” fares to 81 destinations in Europe, including Ljubljana. With this new range of fares, available throughout the year, customers have the choice between the all-inclusive Classic product or the MiNi simplified product, at very competitive prices. With both Classic and MiNi fares, travellers benefit from the Air France product and services on the ground (a wide range of mobile services) and on board (local and international press, snacks and drinks, hand baggage up to 12kg). The difference between the two products is that the MiNi does not include checked-in baggage, does not allow the earning of Flying Blue Miles or choice of seat before check-in. Exceptions are made for our Elite Flying Blue (Silver, Gold and Platinum) and SkyTeam Elite members, who benefit from one free bag even when flying with a MiNi fare.

A MiNi fare can be combined with the Classic. Customers, who do not want to check-in a bag on the outbound flight but need to check one on the return, can choose a MiNi fare on the outbound flight and a Classic fare for the return. Travellers deciding to fly with checked-in baggage after buying a MiNi fare, can purchase a 23kg baggage allowance before check-in via a travel agent, our website or an Air France KLM point of sale. With this product, Air France offers one-way fares for leisure purposes on point to point traffic only. The starting price for the MiNi fare from Ljubljana is: EUR 78* one way and EUR 159* for a return ticket. * including tax, excluding service charges

Q Why should someone fly with you? How do you compete with low-cost airlines?

A First and foremost: Choice! We offer the right price for the right product for each customer.

There are many reasons our passengers fly with us: • Air France KLM operates the leading long-haul network on departure from Europe, covering 232 destinations in 100 countries worldwide • our fleet is made up of 552 modern aircraft. Air France KLM continuously invests in new aircraft. A modern fleet allows the Group to offer its passengers enhanced comfort, generate significant fuel savings and meet its corporate sustainability commitments by reducing greenhouse gas emissions and noise pollution for residents.

• we benefit from the power of our two hubs: Paris-Charles de Gaulle and Amsterdam Schiphol airports • we profit from the biggest transatlantic joint-venture, together with Delta Air Lines and Alitalia we offer 196 transatlantic daily flights • we continue investing in our products and services to offer an easy and relaxing journey to our customers by following their needs and wishes. Air France developed a new long-haul Business class seat around the 3 “F” concept: - Full flat - the seat converts to a fully flat bed - for crossing time zones without fatigue; - Full access - direct access to the aisle, regardless of the seat location in the cabin; - Full privacy - a protected area through the seat’s enveloping curves, providing a true bubble of privacy in the sky.

• Seven destinations operated with the A380 aircraft in summer 2014 - North America: Los Angeles, New York-JFK, San Francisco and Washington-DC - Africa: Johannesburg - Asia: Hong Kong and Shanghai • we continue improving our ground services allowing passengers to make their transit easier and faster.

For example, the SkyPriority access allows Elite Flying Blue members and Business and Premium Economy passengers to use fast track dedicated lines at check-in, boarding, police control, etc.

• Europe’s leading frequent flyer programme: FlyingBlue, with miles remaining valid for life provided that customers travel once every two months.

• Our La Premiere offer, an unforgettable journey in luxury.

• The SkyTeam Alliance consisting of 20 members offering customers access to a global network of over 15,500 daily flights to 1,064 destinations in 178 countries

Q Are you planning to open new routes from Ljubljana?

A Our objective is to feed our hub, ParisCharles de Gaulle, one of the most powerful in Europe, from which Air France offers over 18,000 connecting opportunities between long-haul and medium-haul flights, in less than two hours. Through our joint venture, Air France and KLM benefit from an additional hub, Amsterdam Schiphol Airport.

Q Air France has been in Slovenia for 10 years, can the company make a profit or is it purely for strategic reasons?

A As previously explained, our main objective is to feed our hub Paris-Charles de Gaulle. Slovenia is a strategic market within the Balkans. Thus, the Company will continue to offer the best products and services to its Slovenian customers.

Q Are the alliances in the Balkans a useful substitute for consolidation? Or will you seek other opportunistic partnerships?

A Air France is always open to investigate potential win-win partnerships.

Ildiko Kiss, Country Manager for Croatia, Serbia, Slovenia, Bosnia -Hercegovina, Macedonia and Montenegro, Air France KLM

Q How will Air France develop in the future

faced a few challenges. Do you think the worst is behind us?

A Recent years have been dominated by natural disasters, uprisings in the Middle East, the eurozone crisis and petrol cost volatility. Today, the Air France KLM Group is benefiting from its successful “Transform” project implementating new working conditions and from the industrial plans adopted in all our businesses.

in Slovenia?

A Air France KLM has recently upgraded its aircraft between Ljubljana and Paris.

The flights are operated by an Embraer 170 fitted with 76 seats - 4 Premium Economy, 72 Economy - allowing passengers to enjoy the products and services of Premium Economy from Ljubljana.

Q What about the airline industry? In your opinion, what will be vital in the future?

Bigger planes, faster, less noisy, more sustainable..?

A The Group focuses on sustainable development which is vital. Air France KLM has been committed, for many years, to reducing its environmental impact, developing a responsible social policy and contributing to the development of territories where its aircraft take off and land every day. In 2013, the Dow Jones Sustainability Index (DJSI)*, the main international index evaluating companies on their performances in terms of sustainable development had, for the ninth consecutive year, ranked Air France-KLM leader in the “Airlines” industry category. Air France-KLM concentrates on four main issues: reducing its environmental footprint, integrating sustainable development into its products and services, promoting a responsible human resources policy and contributing to the territories where the Group operates. * DJSI includes the most efficient companies in terms of sustainable development, selected by RobecoSAM, an international asset management firm which assesses companies’ sustainability performance.

Q In recent years, the airline industry has

Q What is your prediction regarding the airline industry in the next year or two?

A In 2014 we will see the implementation of restructuring plans for many major airlines.

Q What will we be talking about in 20 years’ time?

A I am confident that Air France-KLM will return to the path of profitable growth in 2014 and beyond. Generally speaking, I hope for a better future and recovery for the entire industry. <<

Air France Slovenia Igriška 5 1000 LJUBLJANA T: +386 (0)1 244 344 7 +386 (0)1 242 84 03 F: +386 (0)1 244 344 8 E: mail.cto.lju@airfrance.fr www.airfrance.si

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>>Tourism

Terme Olimia – Dream of a revitalised life

The Olimia Thermal Spa has developed next to the Sotla River near Podčetrtek, in an area that combines the heritage of previous centuries with unspoiled natural beauty. Long lasting tradition, a peaceful environment and modern facilities create the perfect spot, Terme Olimia, for total relaxation away from everyday life.

Terme Olimia has evolved from its first wooden swimming pool to the most modern complex in Slovenia but the basic and most important things have remained unchanged: the beneficial effects of the thermal water.

For water gourmands or people with the highest standards of wellness joy, there is the Orhidelia Wellness Centre. In prestigious surroundings, Orhidelia welcomes guests with its modern massage loungers, geysers, whirlpools, slow river, light cave, underwater music, concerts and more. For perfect relaxation there is also the sauna centre, with its numerous choices, countless methods and countless shapes, the hours in Sauna Centre Orhidelia will be like unforgettable minutes. Wellness Orhidelia ranked

among the 11 finalists for “Holidays” at the World Architecture Festival 2009.

For an unforgettable stay at Terme Olimia, the superior, Wellness hotel Sotelia****, is a very special hotel, no place like it can be found near or far. Its specialty is its closeness to nature, its position, diverse structure and large bright areas

Orhidelia Wellness voted the best spa centre in Slovenia for the fifth year in a row 80

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create the feeling of a harmonious connection with the green environment surrounding it. We welcome guests with particular types of pampering, offered by Wellness Centre Spa Armonia with its entire wellness offer, selected gastronomic offer and rooms for socialising. Those who come for business or meetings can be found at the Congress Centre Olimia, which is placed at the very core of the hotel.

“Orhidelia Wellness Centre is the best medicine – relaxation after an exhausting week or month.” This is how satisfied guests have described Orhidelia, the most prestigious facility at Terme Olimia, which celebrated its fifth anniversary on 7 May 2014. To celebrate, a range of surprises, prizes and exclusive programmes were announced for all visitors, but primarily the loyal members of the Terme Olimia Wellcard Club*.

When Orhidelia was opened in 2009, it was shortlisted as one of the 11 finalists of the World Architecture Festival. Visitors and expert juries voted it the best Slovenian spa centre in the category of “tourism – large spa centres” in 2010, 2011,

2012, 2013 and 2014. Orhidelia, which is truly original and outstanding both in terms of its architecture and services, offers an innovative concept of wellness tourism that cannot be found in the immediate or distant surroundings. Apart from pools with underwater music, geysers, whirlpools, themed relaxation areas and a light cave, it also features the largest sauna world in Slovenia which is built over two storeys and has a water surface area of 5000m2 with the clearest thermal water in different types of pools. This is healing water, rich in silicon and nicely warm, which is important for the wellbeing of both children and adults. << * Terme Olimia Wellcard Club allows members to collect points and receive a variety of special offers and discount vouchers. With the Wellcard privilege card, members are entitled to discounts not only at Terme Olimia but also from local providers and at Terme Tuhelj in Croatia. How to become a member?

Email klub@terme-olimia.com.

Terme Olimia, d.d., Podčetrtek, Zdraviliška cesta 24, SI-3254 Podčetrtek T: 03 829 70 00 E: info@terme-olimia.com W: www.terme-olimia.si

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www.terme-olimia.com TERME OLIMIA, Zdraviliška cesta 24, 3254 PoDČeTrTeK | T: +386 (0)3 829 7836 | f: +386 (0)3 5829 024 | info@terme-olimia.com

>>TOURISM

Slovenia’s nature calls for action

By Mark Koghee

Over the last couple of years almost every renowned travel magazine or newspaper travel section has sent praise about Slovenia across the world. Slovenia is beautiful; it probably won’t have escaped you. But what can you do in this small paradise on the southern side of the Alps?

"Don’t forget your hiking shoes", my host reminded me before my first ever trip to Slovenia. I was visiting for a cycling trip although, as I discovered, always take hiking shoes to Slovenia. The sparsely populated country has an abundance of forests, mountains, lakes and green fields waiting to be explored. Wherever you are in Slovenia there is beautiful nature to hike from a serious hike on the Slovenian Mountain Trail which crosses the highest peaks in the country to a stroll in Ljubljana’s Tivoli Park; there is a hike for any taste.

Hiking is Slovenia’s number one activity. Slovenia is one of the most mountainous countries in Europe, the country has around 10,000km of sign posted trails, almost all of them with some sort of climb. Hiking trails can be recognised by the red dot surrounded by a white circle painted on trees. For visitors to Ljubljana, a hike up Smarna Gora is not to be missed. The more seasoned hiker can try a walk to the top of Mount Triglav; Slovenia’s highest mountain at 2,864m.

Why hiking? You discover the unspoilt nature in remote places, you can meet wildlife (don’t be surprised when you suddenly stand eye to eye with a deer) and it’s healthy. While the body works, the mind relaxes in the tranquillity of Slovenian nature.

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Cycling is currently the next big thing in Slovenia. It is not surprising because Slovenia’s quiet roads wind their way through beautiful countryside and with the tarmac glittering in the sunlight they call out to cyclists. The call is being answered by more and more cyclists as the cycling boom is just starting in the country.

The cities of Maribor and Ljubljana have been investing in their cycling infrastructure and between Jesenice and the Italian city of Udine, a cycle route has been made on the old railroad track. At the

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Hiking - Krn; Photo: STB Kayaking; Photo: STB / Tomo Jeseničnik Golf Mokrice; Photo: STB / A. Fevžer Cycling; Photo: STB

coast, the old Parenzana railroad is now also a bike path and in Bohinjska Bistrica, in the Triglav National Park, a brand new bike path has been opened through the green valley around Lake Bohinj.

The pinnacle of Slovenian cycling is the recreational race, Maraton Franja, in June.

With over 3,000 participants it is one of the biggest sporting events in the country.

At the end of August 2014, the World Cycling Championships for amateurs will be run on the Franja course. It’s an event that confirms the rise of cycling in Slovenia.

Kayaking and rafting on the clear waters of the rivers Soča, Savinja, Kolpa and Sava, paragliding from mountaintops, testing your skills in adventure parks, bear safaris in the

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forests, a game of golf on the greenest greens and of course skiing and snowboarding in Slovenia’s ski resorts in wintertime. The palette of activities in Slovenia is large.

Slovenia’s 15 natural spas and health resorts offer a wide range of ‘restivities’.

The resorts make use of the natural healing effects of the thermal waters in Slovenia and the soothing maritime and mountain climates with aerosols, salt water and saline mud, healing peloids and peat. With

massages, saunas and medical programs, the resorts can make your visit to Slovenia of the right balance.

Being active is deeply rooted in the Slovenian lifestyle. Every weekend thousands of Slovenian visit the countryside for some physical exercise.

Without engaging in some sort of activity in Slovenia’s nature you actually never really see Slovenia. A pair of hiking shoes are easy to pack so there shouldn’t be an excuse. <<

Hiking is Slovenia’s number one activity. Slovenia is one of the most mountainous countries in Europe, the country has around 10,000km of signposted trails, almost all of them with some sort of climb.

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>>TOURISM

Interview: Marjan Batagelj, CEO Postojna Cave

Glorious history of the cave

By Polona Križnar

It seems 2014 will be another great business year for Postojnska jama. We talked to the manager, Marjan Batagelj, about their grand plans. They are preparing some new special programmes for those who want a real cave experience – who want to feel the darkness, temperature and underground sounds. Also, after 110 years they will open a historical pavilion, “To show some respect to the cave and to the people who were with her all the time,” explained Batagelj who added “Did you know, for example, that we had electricity before London. They still had candles, we had electricity.”

At Postojnska jama they promise they will show us all the glorious history of the cave.

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Q Your profit for 2013 was EUR 2m, was this according to plan and how do you assess the business?

A The results were above expectation because we planned our business according to world tourism flows. We took into account that our neighbouring countries are still in crisis: Italy, Croatia, and therefore we assumed 2% growth and finished significantly better. In addition, as a result of our internal reorganisation processes, we are now running our business more effectively.

Q You got more visitors than you expected.

The number of domestic tourists does not change significantly and so where do new tourists come from? Who are your target group?

A The world is big. Somewhere they are doing well, elsewhere not. The last three years we focussed on non-European markets such as Russia and Israel which were already a growing market, but mostly we focus on South East Asia. We have partners there; they know Postojna Cave well. It seems that growth will continue this year.

Q More Asian visitors?

A Yes. In particular South Koreans tourists, Chinese and of course, Japanese who are here traditionally. These are also

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markets where the age structure of the groups is now lower which is good because the baby boomer generation, who at one point shaped our cluster of tourists, is now slowly slipping away. Also, in this part of the world, tourist habits have obviously changed which is good for us. In the future we would also like to see more visitors from Central and Latin America.

Q What about domestic tourists? How do you take care of them?

A Home guests are important for us in two ways. First of all we want that every single Slovenian is aware that we have here unimaginable beauty, the cave has a global reputation. Secondly, an important segment of the domestic guests are school groups, children. We work with them, we educate them about the importance of Kras (karst), the karst phenomena. About onethird of the surface of the karst it’s very brittle and so karst pollution is much more harmful than elsewhere. And if I am proud of something, I am proud that children understand karst, I am after all a geographer.

Q There are 20 kilometres of tunnels in Postojna cave, not all of them are intended for visitors. Are you are planning to show some more tunnels? Will you maybe prepare a special programme for visitors?

A For the groups who visit the cave, this is it. The tourist tour must be very well prepared and during the season we have 4,000 - 5,000 visitors per day and visitors want time and order. What you are asking is an alternative, the real experience.

Experiences of the darkness, the temperature and the sound of the cave. We have prepared this option for this year but it is not for large groups. It will be for “gourmets”, for those who will want to see, we will show them the uterus, soil and heaven of the cave. So we won’t expand group tourist visits as it is necessary to leave the cave in peace, we have to let her regenerate naturally. In the past there was a lot of damage as a result of the commercial use of the cave.

Q What about your investments outside the cave. This year you have reconstructed the park and special research centre.

A We need to invest all the time, if we don’t then there is no development, so we invest all our profit. We know we have to show something new each year. This year we will open the exhibition pavilion in which we have invested more than EUR 2m. We will show people the glorious history of Postojna Cave, this will be an exhibition pavilion of superlatives. For example, did you know that the Postojna Cave had electricity before London? Or do

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you know we have here the only underground railway in Slovenia? This pavilion will be reopened after 110 years, previous managers all found a reason not to reopen it because it would cost too much but for us this is very important. In this way we will show some respect to the cave and to all the people who were with her.

The cave has survived five countries and we can only hope that her last state is Slovenia.

to attract guests. When we will see that we can fill two floors with guests then they we will rebuild two floors, we don’t want to rush. In business we rarely move away from the point of our business, our core business. We have the cave, we must give her the primary role. Many of those in business easily overlook what their main product is. We want the glory of the cave.

Q How would you describe your business

Slovenia. Do the decision makers in the country know how to respect her?

A The diplomatic answer - they are trying!

logic? Clear finance and as little credit as possible?

A We are now in the process of paying off our debts. If you want a good sleep it is good preventive action not to borrow too much. Spend what you have, what you create. Take only the level of debt that you are able to pay back.

Q If others would be like you in business then there would be far fewer problems...

A Many become greedy or smug. We

could have significantly faster development, for example we could completely refurbish the hotel but that could be our grave. We have seen this story in Slovenia, a lot of beautiful hotels that are empty. So, first of all, we have to think how we will fill the hotel with guests, not how we will rebuild it. Everyone knows how to build but not all of them know how

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Q Postojna Cave is one of the pearls of

Q What is the real answer?

A The real answer is that they don’t understand. When the Japanese Prince and Princess visited Europe, the Balkans, Slovakia and Slovenia, they told us our cave was one of the most interesting things they saw and if they will talk about the trip, they will talk about our cave and this tells me everything. I cannot overlook this because I’m from here, because I’m a geographer, because I manage the cave. At the national level they should determine the tourist pearls, the icons, because of which the guests will come. We cannot build our tourist image on thousands of things because then we will not be visible, because then we will not be identifiable and we will not stand out. <<

01 Postojna Cave – Spaghetti Hall 02 Postojna Cave legendary cave train 03 The Brilliant, most beautiful stalagmite in the Postojna Cave 04 Marjan Batagelj – CEO Postojna Cave 05 Postojna Cave Aquarium 06 Predjama Castle 07 The undisputed star among inhabitants of the Postojna Cave is the olm, Proteus anguinus

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Postojnska jama d.d.

Jamska cesta 30 6230 Postojna, Slovenia T: +386 (0)5 700 01 00 E: info@postojnska-jama.eu www.postojnska-jama.eu

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>>TOURISM Even the little ones are well taken care of! A children’s room is accessible every day, filled with special furniture and toys.

Babysitting services and car seats for transfer services are available upon request.

The former reception area is now the fine dining restaurant, Sophia, awarded by one of the most influential French restaurant guides, Gault Millau and

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Kempinski Palace Portorož The place where guests can relax by the Adriatic Sea, invigorate at the Rose Spa, savour at the Sophia and Fleur de Sel restaurants, glide the business breeze at the Levante and Ponente meeting rooms, sense Istria at the Wine Cellar and enjoy la Dolce Vita at the Crystal Ballroom.

The Kempinski Palace enjoys a unique location in the very heart of Portorož, which centuries ago was the most important European seaside resort and health spa. It is close to the medieval pearl of Piran and just a short drive from Trieste, Ljubljana and Venice.

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For the past 100 years, this iconic hotel has played a key role in the life of Portorož.

Elegantly nestled in a historical park, the luxurious hotel dates back to 1910 and behind its grand Habsburg facade there is a unique blend of Viennese elegance and contemporary design.

In its rich history, the hotel has hosted many statesmen and film celebrities including Sophia Loren, Josip Broz-Tito, Marcello Mastroianni, Yul Brynner, Pierre Brice, Orson Welles, Rita Pavone and many more.

The Kempinski Palace is situated in the enchanting region of Istria which attracts many with its wide variety of activities such as sailing, scuba diving, cycling, golf, cultural sightseeing and gourmet experiences including sampling the local olive oil, wine degustation and truffle hunting.

With 24 hour assistance and 5-star service, the Kempinski Palace team ensures a memorable visit for every guest, whether they are visiting for leisure or business purposes.

For guests arriving by plane, the hotel provides a BMW limousine transfer.

Concierge services are available to guests for dinner reservations, ticket bookings, sightseeing suggestions or any other requirements or requests.

designed as an affectionate tribute to the beauty of the Italian diva, Sophia Loren.

The menus feature exquisite Mediterranean cuisine, including a rich blend of Italian flavours and local ingredients complemented with a selection of international and Slovenian wines.

Restaurant Fleur de Sel offers a combination of local cuisine with a modern touch. Located on the first floor and with a terrace overlooking the Adriatic Sea, it is the perfect venue to have a romantic dinner or a martini while watching the sunset.

For those who love fine wine, the Wine Cellar is the ideal place to appreciate a great vintage with a group of friends. The Wine Cellar can accommodate private groups of up to 15 people and is the ultimate venue for a romantic dinner, wine and olive oil degustation.

The glamorous Crystal Hall ballroom, adorned with restored crystal chandeliers and Art Nouveau gilded ornaments on the original ceiling from 1910, is the heart of the Palace hotel. Hotel guests can enjoy breakfast at the Crystal Hall ballroom or on the great terrace until midday.

The Rose Spa offers connected indoor and outdoor seawater swimming pools, jacuzzis and a sauna area, a choice of facial and body treatments, massages, peelings, baths and beauty treatments from wellknown luxury cosmetic brands such as Carita, St. Barth and Elemis.

At days end, there are still more surprises ahead! With the turn-down service, guests will return to a refreshed room every evening with the lights dimmed, the curtains closed and the bed linen turned back; all ready for a good night’s sleep. << 01 Hotel Kempinski Palace Portorož 02 Restaurant Sophia 03 Wine Cellar

Kempinski Palace Portorož Obala 45, 6320 Portorož, Slovenia E: reservations.portoroz@kempinski.com T: +386 (0)5 692 70 00 www.kempinski.com/portoroz

>>REGIONS & CITY PROJECTS Q In June 2013, the residential and

Situla

Interview: Marko Rant, Director at Tridana

Situla –

metropolitan crossing for residents of the modern age

By Tina Drolc, M.Sc.

The metropolitan, urban hybrid Situla is located at the edge of the city centre of Ljubljana. Marko Rant, Director of Tridana, the company developing the Situla project, states “Situla was designed for residents of the modern age. It offers 226 stunning apartments with a guided smart home system”. The overall architectural image of the building was designed by Bevk Perović Arhitekti and received the prestigious Plečnik architecture award for 2014. Situla also offers more than 6,000m2 of office space and 5,000m2 of different retail spaces. The location enables its tenants easy access to a business, consumer and social world.

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commercial building, Situla, received its operating permit and the first residents moved into their apartments at the end of 2013. What criteria sets the high standard of housing and how therefore varies the purchase price?

A Situla obtained its final operating permit in June 2013 and the technical management of the building complex was handed over to the facility management company in November 2013. Situla was designed for residents of the modern age and its technical superiority provides high quality and comfortable living. Residents and visitors enjoy large spaces bathed in daylight, smart home systems guided by touchscreen control panels, panoramic windows with triple glazing and tested for airtightness, effective sun protection with patio aluminium stackable sliding panels, Karelia Upofloor wood flooring and Royal Mosa ceramics, Villeroy & Boch bathrooms, Dornbracht or Grohe faucets and an interior layout providing optimal and safe access to and between apartments, offices, restaurants and garages. All apartments have energy efficient underfloor heating and additional air units for quicker cooling or heating. The price of the apartments varies according to the size, position or orientation, and the floor of the apartment. In practice this means that an apartment type is available for all financial ranges.

Marko Rant, Director at Tridana

Q Situla is located near the Ljubljana railway station. How did you ensure the residents were protected from the sound that brings?

A Modern residential schemes close to a railway station are quite common in large metropolitan areas in Europe. Proximity to the railway station is therefore not normally regarded as a handicap but rather as an advantage as it ensures enhanced mobility, transportation and commuting possibilities to the residents of such buildings. In the case of Ljubljana, the view may be somewhat different due to both the smaller size of the city and the fact that the Ljubljana Passenger Centre area is still under development. However, every care has been taken to ensure that the residents of Situla will enjoy a comfortable and relaxing living environment and will be shielded from potentially negative influences arising from the surrounding area. The structure, façade and glazing of Situla has been specifically designed to ensure maximum sound insulation which cancels practically all surrounding noise.

The building also has a central air ventilation system which ensures a constant flow of fresh air to each apartment.

Q Do you offer any special financial conditions for the purchase of an apartment and what is the price range?

A The company Tridana d.o.o., the development company for the Situla project, is 100% owned by the Hypo Alpe Adria group. Hypo Alpe-Adria Bank is our main financial partner in the project and is offering favourable mortgage financing packages to prospective buyers of apartments in Situla. There are multiple financing packages on offer, the best of which is a mortgage loan with an interest rate of 3month EURIBOR + 2.50%. The package includes the transfer of a personal banking account, home insurance, and a prepaid Mastercard credit card without setup fees and a starting balance of €10.

Costs for appraisal and mortgage registration are also included in the package. As a special limited benefit, Tridana is also offering apartment buyers who take out a mortgage with Hypo bank a EUR 100/m2 discount on apartment prices within the price range of EUR 2,500 - EUR 3,500.

Q Tridana, together with Hypo Bank as the main financial partner for Situla, also offers business premises. Is the only option to lease a business premises or can they also be purchased and if so, what are the participating conditions and the price?

A Office and retail premises in Situla are currently available only for rent. Our strategy for the commercial element of Situla is oriented toward first letting the

premises and then searching for an investor that would purchase the entire section, including taking over the lease contracts. We know that mixed ownership of commercial buildings causes a vast amount of problems with facility management. Anyway, business centres with mixed ownership are not interesting for larger investors who are quite pragmatic and look for a suitable revenue stream. The rents vary according to size and purpose and start at EUR 11/m2 per month. Office and retail units are offered as a shell where tenants can design the fit-out according to their individual requirements. To compensate for the fit-out costs, Tridana is offering all tenants a one year rent free period and a further one year reduced rent period where tenants pay only 50% of the base rent.

Q Who are the lessees of the business

A Currently there are no other newly-built

premises in Situla and is there any interest from foreigners?

A Those currently expressing the most interest are from the service sector but there is also interest from public institutions. There is also plenty of foreign interest. The main difference between domestic and foreign interest is that foreign tenants enquire about substantially larger surface areas than domestic tenants.

apartments of such high quality and functionality, with all the supporting services, in Ljubljana. This is a metropolitan concept with unified management and with most urban life services available on site. Situla is distinguished by its technical perfection, comprehensive residential, business and service offer under one roof and its location. The overall architectural image of the building, which was designed by Bevk Perović Arhitekti and has received the prestigious Plečnik architecture award for 2014, stands out as the prominent feature of Situla and gives the building its characteristic urban touch. It is designed with a modern tenant in mind, seeking a high quality and comfortable lifestyle.

Situla’s location enables its tenants simple access to the business, consumer and social world. With its location close to the train and bus station, convenient access from the main city thoroughfares and a parking area, it ensures exceptional transport connections. Additionally, the convenient access to the city centre, with its walkways and bicycle paths, eliminates the need for everyday car use. <<

Q A Qlandia shopping centre is planned for the 5,000m2 in the ground floor. When will this happen and what services will the centre offer in addition to the well known shopping venues?

A There will indeed be a shopping centre in Situla but it will not necessarily be a Qlandia. Tenants in existing Qlandias are representatives of quality brands and meet the standards of Situla however, we are aware that the Qlandia shopping centre format, which is operated by Hypo, is somewhat different from the retail gallery format which we have in Situla. There is no point in creating brand confusion among customers, although some of the content and offer in Situla may be similar to Qlandia shopping centres. For us, it is essential to carefully select the shops and businesses in accordance with the needs of the residents, businesses and visitors of the building, to ensure a pleasant stay as per the “all in one place” approach. Due to the specifics of the building (inside the building) we will thus upgrade the usual spectrum of businesses in Qlandia with medical, wellness and other services needed in everyday life by the tenants.

We plan to open the shopping centre at the end of 2015.

Q Why is Situla different from existing residential and commercial buildings in Ljubljana?

Tridana d.o.o.

Vilharjeva cesta 44 1000 Ljubljana Slovenia T: +386 (0)8 20 56 224 F: +386 (0)8 20 56 226 E: info@situla.eu

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>>REGIONS & CITY PROJECTS

01

RDA Mura: meeting investor needs

Success story

reflected through FDI and awards

By Medeja Kenda

The Pomurje region is situated in north eastern Slovenia, at the heart of Central Europe, giving the opportunity for close connections economically, developmentally and culturally with its neighbours.

In the last five years, the region grew more than 90% and has become a crossroad of regions, people and economic opportunities. It is known for its many advantages, from its geostrategic location, natural and renewable resources, high technology production to its qualified and competitive workforce. Furthermore, with its wellness offer, sports, natural and cultural heritage, it is also targeted as a tourist destination.

The Mura Regional Development Agency (RDA Mura) has been attracting Foreign Direct Investment (FDI) to the Pomurje Region since 2004. The Agencyâ&#x20AC;&#x2122;s adviser for FDI, Franc GĂśnc, says: "We offer full settlement support for foreign investors from decision making to final implementation and aftercare support."

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Business & Investment 2014

Q How would you label the FDI trend in the

Q You carry out activities in the public

region?

A RDA Mura continuously supports existing foreign investors in the region which has resulted in enlargement projects and increased employment. The Pomurje region is actually one of the most proactive regions in Slovenia in attracting FDI and during the crisis some very good investments were made, largely contributing to the fact that the economy of the Pomurje region recovered faster than the economies of other regions in Slovenia.

interest. Striving for improvement, creating added value and new jobs are activities targeted toward the internationalisation of the economy. What do your activities encompass?

A Activities for attracting FDI are undertaken with the objective of improving the regional economy. Export is very important as it directly influences the development of companies. We offer support in finding new business links in target countries. In cooperation with

companies interested in internationalisation, we create a roadmap for achieving goals. The first step was the catalogue of the Pomurje economy showing the potential of around 90 companies from the region. Secondly, we identify the most interesting markets for local companies and we are organising special presentations in those countries, encompassing B2B meetings. Thirdly, on 11-12 November 2014, in cooperation with SPIRIT Slovenia we are organising the SEE MEET, an international business matchmaking event in Radenci, Pomurje region

Q What is the cohesive thread and purpose of the event and who will be the main players?

A SEE MEET will be organised using a

specialised matchmaking system of the French company Futurallia. SEE stands for South East Europe and shows the intention of the region to become a meeting point for companies from Europe that want to find business links in the SEE region. At least 150 companies are expected to attend. In RDA Mura, we are aware of the importance of foreign companies visiting the Pomurje region and meeting local partners, as well as those from all of south east Europe.

information on industrial sites and local suppliers and links with industry and local authorities. Our objective is to offer tailored support for each investor according to their needs.

Q Do you take advantage of the region’s location?

A Traffic infrastructure is one of the most important factors for investors when searching for a new location. The Pomurje region, situated along the fifth European transport corridor, combined with the railroad network, makes an excellent point for reaching other markets. Highway and railway connections offer fast transportation of goods. Moreover, five major airports are within a three hour drive. Additionally, optic cable provides high-speed communication. All these facts, including the good quality of life, convince foreigners to visit us, return and invest in the region.

Q The Pomurje Region and the Municipality

the Pomurje region allows companies special tax relief for investment and employment. Furthermore, companies registered in the Pomurje region have special tenders for new investments. In addition to assisting companies to access regional and national incentives, our support includes information on legislation, taxes and incentives,

of Lendava were placed amongst the winners of the international competition “European cities and Regions of the Future 2014-2015”.

The award was given by FDI Magazine in cooperation with FDI Intelligence. What opportunities has the award brought to you?

A The qualities of the Pomurje region and the Municipality of Lendava have been recognised by international experts and received four awards in all. Pomurje ranked third place for its FDI strategy in southern Europe which is an outstanding result. It also ranked as one of the Top 10 competitive locations in southern Europe.

The Municipality of Lendava received two awards for its FDI strategy; one as Top 10 in southern Europe and one as Top 10 in all European micro-cities. The awards carry international recognition and special value - proof that we are doing the right things and are on the right track. The fact that the Pomurje region received such awards also in the last two years, shows that this is not something that happened by chance – it is a result of successful work. <<

02

03

Q Which areas appear most prospective in the region?

A In recent years the most important areas are the production of motor vehicles and components, metal processing, the food processing industry and also electronics and the construction industry.

Q What kind of support and special tenders do you provide for investors?

A Until the end of 2015, a special law for

In the last five years, the Pomurje region grew more than 90% and has become a crossroad of regions, people and economic opportunities.

RDA Mura offers full settlement support for foreign investors.

01 Wolford and XAL buildings 02 Franc Gönc, Adviser, RDA Mura 03 Industrial zone Murska Sobota

Lendavska 5a, 9000 Murska Sobota, Slovenia T: + 386 (02) 536 14 61 F: + 386 (02) 536 14 65 E: info@rra-mura.si www.rra-mura.si; www.investpomurje.eu www.see-meet.eu

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>>REGIONS & CITY PROJECTS Pokolpje - hand in hand with development

Offering a friendly environment for investors

By Medeja Kenda

Q The Pokolpje Programme covers the period 2011-2016. Have there been any noticeable changes since its introduction?

A More than 60 companies have received grants for their investments in the past three years. This has been an important step on the road to recovery for the region.

As a result, more than 300 jobs have been or will be created, which is quite a significant number for a region as small as ours. Also, a lot of companies have been reimbursed for social security contributions for newly employed people and have used the available tax relief for hiring and investing.

The Pokolpje region is situated in south eastern Slovenia at the border Q What are your expectations for the with Croatia. Over the years, the region has built on its advantages, future?

A We are expecting other development creating opportunities and attracting many business investors. measures such as the development of a new

Peter Črnič, Manager, DIC Bela krajina

The Development Information Centre Bela krajina (DIC Bela krajina) is the public institution responsible for promoting tourism and business in the Bela krajina region. The company informs local and foreign investors and entrepreneurs about current projects and tenders, and offers assistance in dealing with documentation.

Furthermore, it shapes and performs strategies for the development of tourism and its complete offer.

In 2011, the Slovenian government passed the Pokolpje Programme consisting of seven development measures and five measures for fostering and developing entrepreneurship. Summing up the words of Peter Črnič, Manager, DIC Bela krajina, the Pokolpje region is turning into a very friendly environment for investors.

Q Can you share the key advantages of Pokolpje that would convince an investor to start a business there?

A Tax relief and special public tenders are our biggest advantage and benefit together with very attractive land prices – you can get building plots for EUR 9/m2 with infrastructure included. However, the biggest strength is surely the quality of the local workforce which is proverbially hard92

Business & Investment 2014

working, reliable and loyal. After the relocation of Secop, which was the biggest employer in the region, there are many skilled people looking for new opportunities. In my opinion, many companies may find this even more important than tax relief and reimbursement of contributions.

Pokolpje’s strategic location between Central and Southern Europe on the border with Croatia, in the vicinity of international ports and airports and the forested landscape with wood biomass may be additional reasons for deciding to invest into the region.

Q Which industries are typical for this region?

A Metal processing and the wood industry are those with the longest tradition. The textile industry developed in the 20th century and represents an important share of our GDP but it suffered a lot during the transition. Electrical and automotive industries also play a significant role and are becoming more and more important for the development of the region.

Q The main purpose of the Pokolpje Programme is to lower entry costs for all investors whose companies are registered in Slovenia. What are the other benefits?

A The other benefits are reimbursement of employer social security contributions, tax relief for hiring and investing - investors can claim a reduction on the tax base for 70% of the investment - and guarantees with interest rate subsidies for investment loans. Companies that apply for certain tenders from the Ministry of Agriculture and Environment can also count on additional points for investing in our region.

As an agency, we are more than happy to give detailed information to any company that is interested in investing in Pokolpje.

Naturally, all our services are free of charge.

motorway, the so-called third axis, to be executed in the next few years. That means that the value of building land will probably go up.

Q Pokolpje is a wooded area around the Kolpa River basin. Is the region rich in renewable energy sources?

A It is rich, especially in wood biomass and solar energy and also in water and geothermal energy. Today, many organisations are seeking to decrease their dependence on traditional fossil fuels, such as coal and reduce their carbon dioxide emissions and other pollutants.

Q Are there any good investment opportunities?

A Big opportunities for investments are possible in the production of wood biomass fuel in the form of wood pellets and wood chips. At the moment, the TRIS Kanižarica Business Zone offers a good opportunity for the construction of a power plant that is a combination of different renewable sources. Aside from the usage of underground water, there are also a large number of independent solar power plants.

Furthermore, many warehouse roofs in the region are already covered with photovoltaic power plants. Finally, the Kolpa River offers many opportunities for small hydroelectric power plants.

Q Which foreign markets may investors take advantage of by investing in Pokolpje?

A Slovenia, in general, is a good hub for

the Central European markets due to its location close to Italy, Austria and Germany and significantly lower cost of production. The geographic position of Pokolpje is clearly very attractive also for export to the Balkan countries. Therefore, companies that want to settle in Europe may find the Pokolpje region to be an excellent opportunity. <<

INVEST IN THE POKOLPJE REGION!

Special public tenders for the Pokolpje region

Reimbursement of employer's social security contributions

Tax reliefs for hiring and investing

Available quality labour force

A large number of plots at attractive prices

Wealth of renewable energy sources 2

Well-preserved natural and cultural heritage for development of tourism

Support to potential investors by development institutions

DEVELOPMENT AND INFORMATION CENTRE BELA KRAJINA

Trg svobode 3, 8340 Črnomelj Peter Črnič, director e-mail: info@ric-belakrajina.si phone: +386 7 30 56 530

BUSINESS ZONES IN POKOLPJE:

PRICE PER m

9-25 EUR

www.pokolpje.si

>>USEFUL INFORMATION Foreign Embassies (in Ljubljana) Albania

Kingdom of Denmark

Ireland

Russian Federation

Zaloška cesta 69 T: + 386 (0)1 547 36 50 embassy.ljubljana@mfa.gov.al

Eurocenter, Tivolska cesta 48 T: +386 (0)1 438 08 00 ljuamb@um.dk

Palača Kapitelj, Poljanski nasip 6 T: +386 (0)1 300 89 70 ljubljanaembassy@dfa.ie

Tomšičeva ulica 9 T: +386 (0)1 425 68 75 ambrus.slo@siol.net

Republic of Austria

Arab Republic of Egypt

Italian Republic

Republic of Serbia

Prešernova cesta 23, T: +386 (0)1 479 07 00 laibach–ob@bmeia.gv.at

Opekarska cesta 18A T: + 386 (0) 1 429 54 20 embassy.ljubljana@mfa.gov.eg

Snežniška 8 T: +386 (0)1 426 21 94 archivio.lubiana@esteri.it

Slomškova ulica 1 T: +386 (0)1 438 01 10 ambasada@ambasadasrbije.si

Republic of Azerbaijan

Finland

Japan

Slovak Republic

Beethoven ulica 4 (+) 386 1 425 25 10 azer.azembassy@siol.net

Ajdovščina 4/8 T: +386 (0)1 300 21 20 sanomat.lju@formin.fi

Trg Republike 3/XI T: +386 (0)1 200 82 81 info@s2.mofa.go.jp

Tivolska cesta 4 T: +386 (0)1 425 54 25 emb.ljubljana@mzv.sk

Belgium

Republic of France

Republic of Kosovo

Kingdom of Spain

Trg republike 3/IX, T: +386 (0)1 200 60 10 ljubljana@diplobel.fed.be

Barjanska 1 T: +386 (0)1 479 04 00 contact@ambafrance–si.org

Dvorec Sela, Zaloška cesta 69 Tel: + 386 (0) 1 541 54 10 veleposlanistvo.kosovo@siol.net

Trnovski pristan 24 T: +386 (0)1 420 23 30 emba.espa.eslovenia@siol.net

Bosnia and Herzegovina

Georgia

Republic of Latvia

Switzerland

Kolarjeva 26, T: +386 (0)1 234 32 50 ambasadabih@siol.net

Cankarjeva cesta 7 T: + 386 (0)8 382 65 98 ljubljana.emb@mfa.gov.ge

Tavčarjeva ulica 10 T: + 386 (0) 1 434 16 20 embassy.slovenia@mfa.gov.lv

Trg republike 3/VI T: +386 (0)1 200 86 40 lju.vertretung@eda.admin.ch

Federative Republic of Brazil

Federal Republic of Germany

Republic of Lithuania

Republic of Turkey

Kongresni trg 3 T: + 386 (0) 1 244 24 00 brasemb.liubliana@itamaraty.gov.br

Prešernova cesta 27 T: +386 (0)1 479 03 00 germanembassy–slovenia@siol.net

Emonska cesta 8 T: + 386 (0) 1 244 56 00 amb.si@urm.lt

Livarska ulica 4 T: +386 (0)1 236 41 50 embassy.ljubljana@mfa.gov.tr

Republic of Macedonia

Ukraine

Republic of Bulgaria

Greece

Opekarska cesta 35 T: + 386 (0) 1 283 28 99 bgembassysl@siol.net

Trnovski pristan 14 T: +386 (0)1 420 14 00 gremb.lju@mfa.gr

Rožna dolina, Cesta IV/2 T: + 386 (0) 1 421 00 21 makamb@siol.net

Teslova ulica 23 T: +386 (0)1 421 06 04 embassy.ua@siol.net

Montenegro

United Kingdom

People’s Republic of China

Apostolic Nunciature of the Holy See

Njegoševa cesta 14 T: + 386 (0) 1 439 53 64/65 embamon–lj@t–2.net

Trg republike 3/IV T: +386 (0)1 200 39 10 info@british–embassy.si

Kingdom of the Netherlands

United States of America

Koblarjeva ulica 3 T: +386 (0)1 420 28 55 kitajsko.veleposlanistvo@siol.net

Republic of Croatia Gruberjevo nabrežje 6 T: +386 (0)1 425 62 20 croemb.slovenia@mvpei.hr

Republic of Cyprus Komenskega ulica 12 T: + 386 (0) 1 232 15 42/3/4 embassy.cyprus@siol.net

Czech Republic Riharjeva ulica 1 T: +386 (0)1 420 24 50 ljubljana@embassy.mzv.cz

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Business & Investment 2013 2014

Krekov trg 1 T: +386 (0)1 433 92 04 apostolska.nunciatura@rkc.si

Republic of Hungary Ulica Konrada Babnika 5 T: +386 (0)1 512 18 82 mission.lju@mfa.gov.hu

India Maurerjeva ulica 29 T: +386 (0)1 513 31 10 amb.ljubljana@mea.gov.in

Islamic Republic of Iran Tolstojeva ulica 8 T: + 386 (0)1 589 71 00 iranemb.lju@mfa.gov.ir

Palača Kapitelj, Poljanski nasip 6 T: + 386 (0) 1 420 14 60 lju@minbuza.nl

Republic of Poland Bežigrad 10 T: +386 (0)1 436 47 12 lublana.amb.sekretariat@msz.gov.pl

Romania Smrekarjeva ulica 33a T: +386 (0)1 505 82 94 embassy.of.romania@siol.net

Prešernova cesta 31 T: +386 (0)1 200 55 00 usembassyljubljana@state.gov

Bolivarian Republic of Venezuela Emonska cesta 8 Tel: + 386 (0) 82 051 280 emba.venez.eslovenia@siol.net

Slovenian Embassies Abroad Albania Ambasada E Republikës Së Sllovënissë, EGT Tower, P.11/1 kati i 3 Rr. »Abdyl Frasheri«, Tiranë T: 00 35 54 22 74 8 58 vti@gov.si

Argentina Embajada De La Republica De Eslovenia Avenida Santa Fe 846 p. 6° C1059ABP Buenos Aires T: 00 54 11 48 94 06 21 vba@gov.si

Australia Embassy of the Republic of Slovenia PO BOX 284, Civic Square Canberra, ACT 2608 T: 00 61 2 6290 0000 vca@gov.si

Austria Botschaft Der Republik Slowenien Kolingasse 12 A-1090 Wien T: 00 43 1 319 11 60 vdu@gov.si

Belgium Ambassade De La Republique De Slovenie Rue du Commerce 44, 4eme etage 1000 Bruxelles T: 00 32 2 213 6337 vbr@gov.si

Bosnia and Herzegovina Ambasada Republike Slovenije Bentbaša 7 7100 Sarajevo T: 00 387 33 271 260 vsa@gov.si Consulate office in Banja Luka Ul. Kralja Petra I. Karađorđevića 85a, 78000 Banja Luka T: 00 387 51 211 210

Brazil Embaixada Da República Da Eslovênia SHIS - QL 8 - Conjunto 8 - Casa 7 Lago Sul CEP: 71620-285 Brasília / DF T: 00 55 61 3365 1445 vbi@gov.si

Czech Republic Velvyslanectví Republiky Slovinsko Pod Hradbami 15, 160 41 Praha 6 T: 00 420 2 33 08 12 11 vpr@gov.si

Montenegro Veleposlaništvo Republike Slovenije Atinska ulica 41, 81000 Podgorica T: 00 382 20 618 150 kpg@gov.si

Denmark Embassy of the Republic of Slovenia Amaliegade 6, 2nd fl., 1256 Copenhagen T: 00 45 33 73 01 20 vkh@gov.si

Egypt Embassy of the Republic of Slovenia 21 Soliman Abaza St., 6th Floor, Mohandessin, Cairo T: 00 20 2 3749 98 78 vka@gov.si

Iran Embassy of the Republic of Slovenia No. 30, Narenjestan 8th Alley, Pasdaran Ave.(North of Dr.Lavasani Ave.) P.O. Box 19575-459, Tehran T: 00 98 21 2283 6042 vte@gov.si

Italy Ambasciata Della Repubblica Di Slovenia Via Leonardo Pisano 10, 00197 Roma T: 00 39 06 80 914 310 vri@gov.si

Israel Embassy of the Republic of Slovenia Top Tower 19th Floor, 50 Dizengoff Street POB 23245, Tel Aviv 61321 T: 00 972 3 629 35 63 vta@gov.si

Japan

Hungary

Spain

Szlovén Köztársaság Nagykövetsége Cseppkő ut. 68, 1025 Budapest II. T: 00 36 1 438 56 00 vbp@gov.si

Embajada De La Republica De Eslovenia Hermanos Bécquer,7-2 28 006 Madrid T: 00 34 91 411 68 93 vma@gov.si

FYR Macedonia Ambasada na Republika Slovenija Vodnjanska 42, MK-1000 Skopje T: 00389 2 317 66 63 vsk@gov.si

Switzerland Botschaft Der Republik Slowenien Schwanengasse 9, CH-3011 Bern T: 00 41 31 310 90 00 vbe@gov.si

Germany Botschaft Der Republik Slowenien Hausvogteiplatz 3-4 D-10117 Berlin T: 00 49 30 206 145-0 vbn@gov.si

Turkey

Netherlands Embassy of the Republic of Slovenia Anna Paulownastraat 11 2518 BA The Hague T: 00 31 70 310 8 690 vhg@gov.si

Poland

Ambassade De La Republique De Slovenie 28, rue Bois-le-Vent, 75116 Paris T: 00 33 1 44 96 50 71 vpa@gov.si

Embassy of the Republic of Slovenia 14-12 Minamiaoyama 7-chome Minato-ku Tokyo 107-0062 T: 00 81 3 5468 6275 vto@gov.si

Greece

Canada Embassy of the Republic of Slovenia 150 Metcalfe Street Suite 2200 Ottawa, Ontario K2P 1P1 T: 00 1 613 565 57 81 vot@gov.si

Embassy of the Republic of Slovenia Str. Puskin Alexandru 10 Sector 1, Bucharest T: 00 40 21 300 27 80 vbk@gov.si

China

Russian Federation

France

Embassy of the Republic of Slovenia 280, Kifissias Ave. & 1, Dimokratias Str. 154 51 Neo Psychico, Athens T: 00 30 210 672 00 90 vat@gov.si

Croatia Veleposlanštvo Republike Slovenije Alagovićeva 30, 10000 Zagreb T: 00 385 1 63 11 000 vzg@gov.si

India Embassy of the Republic of Slovenia 46, Poorvi Marg Vasant Vihar, New Delhi-110 057 T: 00 91 11 4166 2891 vnd@gov.si

Embassy of the Republic of Slovenia No. 57, Block F, Ya Qu Yuan, King’s Garden Villas 18 XIAO Yun Road Chaoyang District 100016 Beijing T: 00 86 10 6 468 11 54 vpe@gov.si

Kosovo Embassy of the Republic of Slovenia Anton Ceta Street, No. 6, 10000 Priština T: 00381 38 246 255 mpi@gov.si

Ambasada Republiki Słowenii Ul. Staroscinska 1 m. 23-24 02-516 Warsaw T: 00 48 22 8 49 82 82 vvr@gov.si

Embassy of the Republic of Slovenia Bogdana Khmelnytskogo 48 01030 Kiev T: 00 380 45 585 23 30 vki@gov.si

Ambasciata Di Slovenia Presso La Santa Sede Via della Conciliazione, 10 00193 Roma T: 00 39 06 683 30 09 vva@gov.si

Great Britain

Embassy of the Republic of Slovenia Ul. Malaja Dmitrovka 14/1 127006 Moskva T: 007 495 737 63 55 vmo@gov.si

Embassy of the Republic of Slovenia Ventúrska 5, 813 15 Bratislava T: 00 421 2 5726 7700 vbs@gov.si

Ukraine

Vatican

Romania

Slovakia

Embassy of the Republic of Slovenia Kiralngiç Sokak No. 36 06700 G.O.P., Ankara T: 00 90 312 405 4221 e-mail: van@gov.si

Embassy of the Republic of Slovenia 10 Little College Street London SW1P 3SH T: 00 44 20 7222 5700 vlo@gov.si

United States of America Embassy of the Republic of Slovenia 2410 California Street, NW Washington, D.C. 20008 T: 00 1 202 386 66 10 vwa@gov.si

Serbia Ambasada Republike Slovenije Dositejeva ulica 41, 1000 Beograd T: 00 381 11 303 84 77 vbg@gov.si

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>>USEFUL INFORMATION Permanent Representations United Nations, OSCE and other International Organisations in Vienna

NATO

Kolingasse 12 A-1090 Wien T: 00 43 1 319 11 60 11 mdu@gov.si

Representation Permanente De La Repuplique De Slovenie Aupres De Nato In Weu NG Building, Nato HQ Blvd. Leopold III, 1110 Bruxelles T: 00 32 2 707 27 69 mna@gov.si

European Union

Council of Europe

Représentation Permanente De La République Aupres L’union Européenne Rue du Commerce 44, 1000 Bruxelles T: 00 32 2 213 63 00 spbr@gov.si

OECD Permanent Representation of the Republic of Slovenia to OECD 28, rue Bois-le-Vent, 75116 Paris T: 00 33 1 44 96 50 69 mpa@gov.si

Permanent Mission of the Republic of Slovenia to the United Nations 600 Third Avenue, 24th Floor New York, N.Y. 10016 T: 00 1 212 370 30 07 mny@gov.si

Permanent Mission of the Republic of Slovenia to the United Nations Office and other International Organisations

Representation Permanente De La République De Slovénie Aupres Du Conseil De L’europe 40, Allee de la Robertsau, 67000 Strasbourg T: 00 33 3 88 36 60 25 msb@gov.si

37 - 39 Rue de Vermont, 1202 Geneve T: 00 41 22 716 17 80 mge@gov.si

Partners of the Publication

Ministry of Economic Development and Technology of the Republic of Slovenia – SPIRIT Kontnikova 5 1000 Ljubljana, Slovenia T: +386 (0)1 400 33 11 E: gp.mg@gov.si www.mg.gov.si Slovenian Tourist Board - STO Dimičeva 13 1000 Ljubljana, Slovenia T: +386 1 589 85 50 info@slovenia.info www.slovenia.info

Slovenian Business Club Dunajska cesta 119 1000 Ljubljana T: +386 (0)41 627 306 E: info@slovenianbusinessclub.si www.slovenianbusinessclub.si

Avstrijsko Veleposlaništvo Gospodarski oddelek Nazorjeva 6, p.p. 1595 SI-1000 Ljubljana T: +386 (0)1 513 97 70 E: laibach@advantageaustria.org

Manger Association Dimičeva 13, 1504 Ljubljana, +386 (0)1 5898 584, E: info@zdruzenje-manager.si www.zdruzenje-manager.si

Ljubljana Jože Pučnik Airport Zg. Brnik 130a 4210 Brnik-aerodrom, Slovenia Passenger information: +386 (0)4 206 19 81 T: +386 (0)4 206 10 00 E: info@lju-airport.si www.lju-airport.si

JAPTI - Public Agency for Entrepreneurship and Foreign Investments Verovškova ulica 60 1000 Ljubljana, Slovenia T: +386 (0)1 589 18 70 E: fdi@japti.si www.investslovenia.org

AmCham Slovenia Dunajska cesta 156 1000 Ljubljana T: +386 (0)8 205 13 51 office@amcham.si www.amcham.si

Ministry of Foreign Affairs of the Republic of Slovenia Prešernova cesta 25, P.P. 481 1001 Ljubljana, Slovenia T: +386 (0)1 478 20 00 E: info.mzz@gov.si www.mzz.gov.si

Slovenian-German Chamber of Commerce (AHK) Poljanski nasip 6 1000 Ljubljana, Slovenia T: +386 (0)1 252 88 60 E: ahk@ahkslo.si www.dihk.si

Economic diplomacy Trubarjeva 3 1001 Ljubljana, Slovenia T: +386 (0)1 478 66 42 E: gospodarska-diplomacija.mzz@gov.si

BSCC British-Slovenian Chamber of Commerce www.bscc.si Britansko-slovenska gospodarska zbornica

British-Slovenian Chamber of Commerce Trg Republike 3, 1000 Ljubljana, T: +386 (0) 1 320 02 40 E: info@bccs.si www.bccs.sI BSCC Member www.bscc.si

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Business & Investment 2013

British-Slovenian Chamber of Commerce Britansko-slovenska gospodarska zbornica

www.bscc.si

BSCC Corporate Member British-Slovenian Chamber of Commerce www.bscc.si Britansko-slovenska gospodarska zbornica

SAVE S.p.A. – Aeroporto di Venezia Marco Polo Viale G. Galilei 30/1 - 30173 Tessera – Venezia, Italy www.veniceairport.it

Letališče Graz Betriebs GmbH 8073 Feldkirchen / Graz T: +43 (316) 2902 172 www.flughafen-graz.at

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