Business Dialogue - January 2016

JANUARY BUSINESS LEADER’S MEETING POINT

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NENAD ĐURĐEVIĆ Regional Manager, Ball Packaging Europe

MILAN VUJOVIĆ Director of Corporate Marketing at Samsung

How We Won With the Can

User-Friendly Devices

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MIRKO BUTULIJA President of the Automobile and Motorcycle Association of Serbia

BRANIMIR MIJAILOVIĆ Director of Energotehnika – Južna Bačka

Symbol of Safety and Security

No Leadership Position Without Quality

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GORAN RADOVIC Managing Director at Vossloh Cogifer - Vossloh MIN Skretnice

NELA CERO Commercial Sector Head at PPT Inženjering a.d. Belgrade

Small Switch, Big Success

Successful Combination of Knowhow and Tradition

CORPORATE

NENAD ĐURĐEVIĆ, REGIONAL MANAGER, BALL PACKAGING EUROPE

How We Won With the Can Since establishing operations ten years ago, Ball Serbia has been a strong performer, both as an exporter and an intercompany, as one of Ball’s leading operations in Europe

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all Packaging is celebrating ten years of successful operations in Serbia. In this interview for CorD, Ball Packaging Europe Regional Manager Nenad Đurđević summarises achievements to date and talks about new challenges on the market.

■ How much success how you achieve with your beverage cans in the SEE region and what are your future targets?

- Just ten years ago, drinks can packaging was not so popular in SEE. At that time, beverage producers in SEE either opted for glass or PET packaging, while they were neither aware of, nor believed in, the potential of cans. Today, ten years after the launch of Ball Serbia, the market looks different. In 2014, BPE sold over 1.08 million cans, which accounted for 31 per cent of the drinks can market in SEE, which is estimated at 3.46 billion cans. This year alone, Ball Serbia’s regional sales are projected to grow by 40 per cent. Half of our current customers are made up of small and medium-sized companies, with the other half comprising key accounts. Ball’s success has been made possible through innovation and in-depth knowledge of the beverage business.

■ How does the company intend to broaden its portfolio in terms of acquisitions?

- In a changing economic environment, we are faced with constant ■ Which of the major achievements made by Ball Packaging in the consolidation, especially in the brewing industry. Ball Corporation last 10 years would you single out as being the most important? is always trying to align with our customers’ changing footprint - In celebrating 10 years of operations in Serbia, Ball Packaging Europe and earlier this year Ball Corporation agreed to buy Rexam Plc for Belgrade proudly looks back at the successful path that lies behind about 4.4 billion pounds ($6.8 billion) in cash and stock, thereus. From the moment of the initial inby creating the world’s biggest manvestment in 2004 (the OECD ranked it ufacturer of food and beverage cans.

Ball’s success has been made as the main Greenfield investment in The deal is conditional on European possible through innovation Southeast Europe), the first commercial Union, U.S. and Brazilian regulators. and in-depth knowledge of the We expect the final outcome in the cans were already being produced by June 2005; by 2007 all operational perfirst half of 2016. The combined combeverage business formance targets had been met or expany could have around 22,500 emceeded – with European “benchmark” performances in many areas; ployees and generate $15 billion in sales, creating $300 million in in 2011 came installation of second can line, by 2012 we had achieved annual cost savings. annual production of a billion and in 2014 the production line was converted to produce speciality cans.

■ In which CSR areas has Ball Packaging contributed the most?

We have the capacity to produce over 1.5 billion beverage cans - Ball took its role in the community responsibly from the first through two high-speed production lines, with 24/7 operations year – and we still do. and 83 per cent of output exported, amounting to over 14,000 We are helping to raise awareness about recycling, through our cross-border vehicle movements annually. In 2014 we supplied 71 Recan Foundation and as a member of the Sekopak Association. different customers in 21 countries. All of this has been enabled In cooperation with EKO ART and the Čarapa Children’s Theatre, with an overall investment of approximately €100 million.

Ball Serbia established the project “LIMENKICA – ULAZNICA” Since the establishment of operations, Ball Serbia has been a “POZORIŠTE KOJE RECIKLIRA” in 2009. The aim of this project is strong performer both as an exporter (always ranked among the to raise awareness among pre-school and school children about top 15) and an intercompany, as one of Ball’s leading operations in the importance of environmental protection, the appropriate Europe (ranked 1st or 2nd by KPI). disposal of waste and recycling, through the continuous performance of theatre plays. ■ 28 |

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CORPORATE

MILAN VUJOVIĆ, DIRECTOR OF CORPORATE MARKETING AT SAMSUNG

User-Friendly Devices Samsung records good results in all product categories on the Serbian market because it puts the user experience first

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n the technology industry, regardless of the country in which one operates, great attention must be paid to one’s customers, both existing and future.

We set aside 40 million dollars a day on the research and development of products, in order for us to understand what people want and what they need.

attention must be paid to one’s customers, both existing and future. We set aside 40 million dollars a day on the research and development of products, in order for us to understand what people want and what they need. Every country’s market is different, because the culture, way of life, thinking and even needs of customers are different. When we create devices, we never stick to the approach that something one person likes will suit everyone. Each country or region has a distinct culture that impacts on the use of technology. It is precisely our cultural awareness that enables us to direct the global innovation of our company towards the requirements of the individual, thereby satisfying consumers around the world.

In Serbia people follow trends in technology, are computer literate and seek applianc-

gate the entire database of Tesla’s original manuscripts, notes and documents. We are continuing cooperation with the organising of the Tesla educational road show, which will visit 17 cities across Serbia with the aim of familiarising as many children as possible with the life and work of this famous scientist. Lectures will be organised in Samsung’s mobile smart classrooms, where, along with demonstrations of some of Tesla’s experiments, primary school pupils will discover that without this great scientist we would not have many of today’s technological innovations.

■ In which areas of CSR is Samsung ■ In which areas are Samsung products most active? recognised as a leading brand in Serbia?

- Wherever we operate, we target the - Samsung records good results in all prodsocial problems confronting these counuct categories on the Serbian market. And tries and try to solve them with here, like elsewhere in the world, the help of our technology, prodwe are most renowned for our moThe Tesla educational road show, ucts and expertise. We most ofbile phones and televisions, but the with Samsung smart devices, will ten deal with the key issues of visibility of our home devices, proeducation, employment, healthcessors or memory chips is also evvisit 17 cities across Serbia with care and environmental protecer increasing. However, I always like the aim of familiarising as many tion. When it comes to Serbia, we to say that Samsung is more than children as possible with the life are most active in the fields of edjust an ICT company, we are much and work of this famous scientist ucation and unemployment. Here more than just a company that we have devised two educational makes amazing smart devices. It is projects – digital classrooms and laboes that fit their needs. That’s why we offer more important to us why and how people ratories for creating applications, and, them a wide range of products – from very use our products, and what their experience for the unemployed, we have developed affordable devices to premium models. with them is like. The production categories the Digital Academy project. We want in which we are a leading brand is not so imto teach our children and teaching per■ Please tell me more about Samsung’s portant, but rather that we design and desonnel smartly and improve their learncooperation with Belgrade’s Nikola velop the kind of devices that will improve ing through the use of modern technolTesla Museum. and simplify the daily lives of users, offering ogy, while at the same time ensuring - Cooperation with the Nikola Tesla them a completely different experience. they acquire the digital skills that are esMuseum began with the opening of the sential in today’s IT world. On the other Research Centre that we equipped with the ■ What are the most important charachand, the Digital Academy provides peomost advanced equipment and technoloteristics of the Serbian market in terms ple with professional education, where gy for faster and easier access to the scienof demand and monitoring technologthey can learn basic IT and engineering tific materials of this accomplished scienical trends? skills, thereby increasing their employtist in digital form. Students and research- In the technology industry, regardless of ment opportunities. ■ ers from around the world can now navithe country in which one operates, great JANUARY

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BUDGET

LOCAL

NEWS

“The 2016 budget is based on real projections, with next year’s GDP growth at 1.75 per cent, which is more than a two-fold increase relative to this year.”— DUŠAN VUJOVIĆ, Serbian Finance Minister

NELT

AMCHAM

Nelt Unveils Bijeljina Distribution Centre

MILOS JELIĆ, Executive Director, Nelt Group

With representatives of government, the business community and the media in attendance, Nelt officially opened its new distribution centre in Bijeljina, BosniaHerzegovina. With this investment,

Electronic Building Permits as of 1st January

worth €1 million, Nelt completed a six-year investment cycle that began with the opening of its distribution centres in Sarajevo and Banja Luka, with the aim of providing infrastructure for the smooth execution of retail distribution operations for the B-H market.

“To date, Nelt has invested 15 million KM (€ 7.5million) in the B-H market, providing over 250 jobs and contributing to the development of young and promising trainees who are now the carriers of Nelt’s business in B-H,” said Milos Jelić, executive director of the Nelt Group .

This business year will see the company record a net income of approximately € 100 million, which – in terms of generated net income – places the company among the four leading distributors of consumer goods in Bosnia-Herzegovina.

A conference entitled “Building permits - unified procedures and planning documents” was organised by the American Chamber of Commerce, the Serbian Ministry of Construction, Transport and Infrastructure, USAID BEP and NALED. “Serbia’s GDP grew 2.2 per cent in the third quarter, with the greatest contribution coming from construction, with growth of 18.3%. The number of permits issued is up by 27 per cent and the value of construction works is a fifth higher than in 2014. These results will be even better when building permits are issued electronically,” said Zorana Mihajlović, Deputy Prime Minister and Minister of Construction, Transport and Infrastructure.

“By March 2016 more than 3,000 officials, at the state and local levels, will be trained in the issuance of electronic building permits,” announced Jelena Bojović, Director of the NALED Regulatory Reform Team.

SOCIETE GENERALE BANK

5 ITEMS

First Online Branch in Serbia Societe General Bank has introduced an online branch within upgraded e-banking services. In addition to traditional branches where clients can receive more complex banking services, online outlets allow not only applications for requests, but also the implementation of various banking products. Within these digital outlets, clients can get video chat advice from bank personnel, both during working hours and at other times, including weekends. In order for customers to make use of some of these banking products via the internet, the user is required by law to have a qualified digital certificate i.e. a digital personal signature. Societe Generale Bank will refund the cost of the purchase of the digital certificate to all clients who order this certificate by the end of January 2016 and successfully complete a request for an online cash dinar loan.

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ON EVERY EMPLOYEE’S HOLIDAY WISH LIST

BELGRADE FAIR

New Year's Festival at The Fair The Belgrade Fair is to host the traditional New Year’s Fair, featuring a large number of entertaining events for hundreds of thousands of visitors of all ages.

The New Year’s Fair consist of a series of pleasant surprises that the Belgrade Fair has been organising for the last few decades, always starting prior to New Year and ending in February. This year’s event has been created jointly by the City of Belgrade, the Tourist Organisation of Belgrade, the Belgrade Fair, the Children’s Culture Centre of Belgrade and the Centre of Belgrade Festivals (CEBEF).

This collaboration aims to create a synergy of content that suits the 21st century visitor by popularising positive value systems in society and traditional forms of entertainment, but giving them a new dimension. The Belgrade New Year’s Festival started in December and will end on 10th February, with the closing of the Ice Atrium.

If employees developed a collective wish list, what would be on it? According to recent survey a few common needs rise to the top:

1. Opportunities to give feedback– Create an environment where employees feel safe to have a candid conversation with you.

2. Less BS and more humanity– Enough beating-around-the-bush or, even worse, “spinning” of messages.

3. Understanding of your expectations Many problems in business are caused by a lack of understanding of expectations or a misunderstanding of what’s needed and expected.

4. Empathy– Pause and imagine how employees are feeling 5. More listening– Stop talking so much.

Ask for input and feedback.

FLIGHTS

DO YOU KNOW

“Once we get the approval of the regulatory authorities, we will introduce direct flights to the United States, which the region has been waiting for since 1992.”— DANE KONDIĆ, Air Serbia CEO

CHAMBER OF COMMERCE AND INDUSTRY (PKS)

First Trade Centers by the End of 2016

Placements & postings appointments@aim.rs

Kikinda, in the northern part of Vojvodina, is the biggest wintering ground of long-eared owls on the planet.

H.E. U MYO AYE

New Ambassador of the Republic of the Union of Myanmar to Serbia Mr. U Myo Aye graduated from the Defence Services Academy in 1981 and holds a master’s degree in Defence Studies from the National Defence College, Myanmar.

Prior to joining the Diplomatic Corps, U Myo Aye served the Defence Services from 1977 to 2011 in various capacities, up to the rank of Brigadier General.

He served as Ambassador of Myanmar to the State of Israel from September 2011 to November 2015. Born on 3rd October 1959, Ambassador U Myo Aye is a married father of two sons and one daughter.

H.E CONSTANTINOS ELIADES MARKO CADEZ, President PKS

The president of the Chamber of Commerce and Industry of Serbia (PKS) Marko Cadez announced that the PKS will open its first five or six trade centers around the world in the second half of 2016.

“The idea is to establish a model similar to the one in Austria, whose efficiency is illustrated by the fact that the country was an import-oriented economy 15 years ago, while now, thanks to a reformed programme of trade representation abroad, EUR 7 out of every EUR 10 earned by the Austrian economy come from abroad,” said Marko Cadez, President of PKS.

New Cypriot Ambassador to Serbia

H.E Constantinos Eliades (60), born in Freetown, Sierra Leone, is the new ambassador of the Republic of Cyprus to Serbia. Mr Eliades graduated from the Université d’Aixen-Provence, France, earning a Bachelor’s Degree in Business Administration, followed by a Master’s Degree in Economics and Diplôme d’Etudes supérieures spécialisées in Tourism Economy. He joined the Ministry of Foreign Affairs (MFA) of the Republic of Cyprus in 1989, entering the Economic Affairs Division. From 1990 he served as Second Secretary in the Embassy of Cyprus in Belgrade and from 1993 he was 2nd Counsellor of the Embassy in Paris. From 1996 Mr Eliades served as 1st Counsellor in Moscow, and from 1999 until 2002 he served as Deputy Director, Political Affairs Division at the MFA. From 2002 he was High Commissioner of the Republic of Cyprus in Nairobi (Kenya) and Permanent Representative to UNEP and UN HABITAT. Then in 2006 he served as the Ambassador to Belgium and from January 2011 he became head of the Americas Dept. at the MFA. Mr Eliades speaks Greek, English, French, some Russian and some Serbo-Croatian. He is married to Constantia Eliades and has a daughter.

H.E. ARCHBISHOP LUCIANO SURIANI

Archbishop of Amiternum: New Apostolic Nuncio to Serbia

TELENOR

Gift For All Users - Capture

H.E. Archbishop Luciano Suriani was born in Atessa (Chieti, Italy) on 11th January 1957.

He was ordained as a priest and doctor of Canon Law on 5th August 1981.

Suriani entered the diplomatic service of the Holy See on 1st June 1990 and has since served at Pontifical Representative Missions in the Ivory Coast and Switzerland.

From July 1995 to August 2004 he served within the Section for Relations with States of the Vatican Secretariat of State, after which he spent four years at the Apostolic Nunciature in Italy.

On 22nd February 2008 he was appointed Apostolic Nuncio to Bolivia and on 24th September 2009 he was appointed the Delegate for Apostolic Nunciatures.

Apart from his native Italian, Archbishop Suriani speaks Spanish, French and English.

GEORGIOS PAPANASTASIOU

New President of the Board of the Hellenic Business Association in Serbia

Telenor’s prepaid and postpaid customers have received the New Year’s gift of Capture – a digital photo storage service, as well as internet for its use over the next two years. The service brings them up to 100GB of personal space on the internet, where they can store photos and videos from their mobile phone free of charge. The Capture service is a type of digital photo and video album, which enables users to store all the photos and videos in the cloud. All stored data can be accessed easily from any device connected to the internet. Capture is activated via the My Telenor mobile applications or a web portal that redirects users to the appropriate web store. It is also possible to download directly from the Google Play Store for Android or the AppStore for iOS devices.

Georgios Papanastasiou holds a BSc in Economics from Thessaloniki’s Aristotle University and an MBA from Bentley College, U.S. He has started his career in the banking sector in 1987 as a credit assistant at the Bank of Nova Scotia, after which, in 1991, he joined ABN AMRO Bank and served as Relationship Manager and Area Commercial Manager. From the year 2000, Mr Papanastasiou continued his career at Stopanska Banka, where he held several management functions before being appointed General Manager in 2005. In 2009 he left the position of Second General Manager at Stopanska Banka, a member of the NBG group in FYROM, and joined the Alpha Bank team. He became a member of the Executive Board of Alpha Bank Srbija in April 2009, and in May that same year he took over the duties of President of the Executive Board of Alpha Bank Srbija.

ZORAN BLAGOJEVIĆ,

New President of the Executive board of Wiener Städtische osiguranje Beograd a.d.o.

Zoran Blagojević will take up the position of president of the Executive board of Wiener Städtische osiguranje Beograd a.d.o. as of 27th December 2015. He succeeds Branko Krstonošić, who heads into retirement after almost four decades working in insurance.

Blagojević graduated from the University of Belgrade’s Faculty of Law and spent 11 years working at three insurance companies before joining Wiener Städtische osiguranje. He started his career at this company in 2003 and in 2008 took over the position of President of the Management Board of Wiener Re a.d.o. Beograd. Four years later, in 2012, he advanced to become Executive Director at Wiener Städtische osiguranje a.d.o. Beograd. Blagojević is a married father of one daughter.

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INTERVIEW

MIRKO BUTULIJA, PRESIDENT OF THE AUTOMOBILE AND MOTORCYCLE ASSOCIATION OF SERBIA

Symbol of Safety and Security Tradition and security are hallmarks of AMS Osiguranje, Insurance company, while reliability is the biggest ally of this insurance company, as shown by the results of operations in 2015. In the coming year, AMS Insurance and AMSS will continue to participate in a number of campaigns aimed at increasing the safety of all road users

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n 2015, AMS Insurance and AMSS achieved significant successes, says Mirko Butulija, President of the Automobile and Motorcycle Association of Serbia (AMSS).

■ What kind of results will you end this year with and which of the products of your insurance comopany were the most in demand?

- Behind us is another very successful year. AMS Osiguranje, Insurance company, retained its market position and proved to be among the ranks of not only stable insurance companies, but also among the leading domestic insurance companies in our country. This year we also recorded an increase in sales of policies, particularly automobile liability insurance, which is a result of the dedicated and devoted work of employees.

I would also point out that we achieved remarkable results in the implementation of property insurance within AMS Osiguranje, Insurance company, primarily through participation in public tenders, which encourages us to focus further on the development of this type of insurance.

tion of Serbia is that one country should have one representative club and, given that Kosovo is an integral part of Serbia, it cannot agree with any conflicting stance. I emphasise that the AMSS has excellent cooperation with the club from Kosovo, which is simultaneously a guarantee for our members on the territory of Kosovo, and I note that it is only through the combined actions of the two clubs that we can properly carry out the projects which we will participate in together.

■ What you will remember this year for when it comes to car and motorcycle sport in Serbia?

- With the successful organisation of a large number of international and domestic competitions, AMSS showed in the past year its responsible attitude towards motor racing, giving full support to its affirmation in the country and abroad, returning it, after many years, under its own wing. I would particularly like to point out what is to us the most important part, including when we are talking about this kind of sport, and that is the education of a large number of young people who have the desire to one day find themselves as ■ What does your presence at the General Assembly of the FIA (Federation Kosovo’s request for admission into the competitors in a racing car or on motorcyInternationale de l’Automobile), mean FIA associations for mobility and sport cle. Education projects have proved to be to you? were, thanks to our efforts, postponed an excellent starting point, thus we decided - As a member of the FIA family since to finish the season with a seminar, with in the case of mobility, while the 1926, we participate actively in the prospeakers including people from various request for sport will be temporarily areas, thereby representing another way motion of FIA activities in our country, both in the field of sports and in the field approved, with the final decision to be that we can contribute to the development of this branch of sport, with particular emof mobility. At this year’s FIA conference, made two years from now held in Paris, requests were presented phasis on safety. by the two clubs from Kosovo for the admission into the FIA. Arguing, amongst other things, that the International Olympic Committee has ■ What are your plans for 2016? recognised Kosovo, the FIA administration justified the consistency of - We will try to maintain a transparent relationship with our clients, its standpoints. However, the final conclusion was partial admission, whose needs we always put first. In accordance with its long-term which is to say that our efforts led to the postponing of the request for strategy, AMS Osiguranje, Insurance company, will continue to invest in mobility, while the request for sport will be temporarily approved, with products, personnel and training, while expanding its sales network in Kosovo obliged to meet certain standards in the next two years, after line with European business trends, with the aim of constantly increaswhich a final decision will follow. The stance of the Automobile Associaing customer satisfaction. ■ 32 |

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CORPORATE BRANIMIR MIJAILOVIĆ, DIRECTOR OF ENERGOTEHNIKA – JUŽNA BAČKA

No Leadership Position Without Quality Partnership with company Velmont, and involvement in the production of energy pillars, has enabled Energotehnika - Južna Bačka to further diversify its business portfolio and consolidate its leadership position on the market

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from being engaged in engineering, construction and the maintenance of power facilities, through partnership with the Valmont Company, Energotehnika – Južna Bačka is now launching production of energy pillars. Zrenjanin was a logical choice because it has a well-regulated industrial zone and previous investors were happy.

sition from thermal energy to renewable, are inevitable, there will be increasing need to hire companies like Energotehnika – Južna Bačka. The extent of this growth hinges on the pace and volume at which Serbia and the countries of the region implement the EU’s energy directives. It is very difficult to estimate the value of the regional market, but I can tell you that it is measured in the hundreds of millions, and maybe even billions, of euros. And the value of the business deals will most certainly grow.

nterprise Energotehnika - Južna Bačka is involved in several large-scale projects both with■ On which markets is Energotehnika in the country and elsewhere in planning to sell products manufactured the region. The most important of these in Zrenjanin? are designing and constructing a 10Mwe - Our main goal is to satisfy the needs of cogeneration facility called Toplana ■ What are your business plans for 2016 the Serbian market and for our products Zapad, constructing a new ash conveyand what important projects are ing pipe, reconstructing several substations of 110kV and 35kV voltage Implementing the EU’s energy you going to be involved in, both in the country and abroad? and electrical installation works on directives and transitioning - Our main goal is to maintain the level tunnels in Serbia. At the beginning from thermal energy to of quality achieved. Energotehnika – of 2016 we are starting reconstruction of the two 110kV substations in renewable energy sources will Južna Bačka is the leader in its sector Bosnia-Herzegovina. Along with this, open the regional market up to and we plan to maintain that status.

The most important thermal-energy Energotehnika’s company in Germany the even bigger engagement of projects that we have been working – RSE Solutions – has been operating companies like Energotehnika on, and that we are supposed to wrap well. Energotehnika – Južna Bačka reup next year, are designing and concently started producing energy pil– Južna Backa structing the 10Mwe Toplana Zapad lars and the main goal of this business cogeneration facility and constructing to be a substitute for imports. In the next decision is to provide a substitute for ima new ash conveying pipe at Kostolac, stage, we plan to export to neighbouring ported pillars and perhaps, in due course, worth €6.5 million each. In terms of eleccountries and, if an opportunity presents export them to neighbouring countries”. trical engineering, we are currently workitself, we will try to conquer the markets ing on reconstructing several 110kV and of Southeast and Western Europe.

■ What were the key reasons to sign the 35kV substations, worth over €10 million, cooperation contract with U.S. compaas well as performing electrical installa■ Considering that concluding this conny Valmont; and what made Zrenjanin tion works on tunnels. At the beginning tract also means setting up a representstand out as a suitable location for the of 2016 we are starting reconstruction of ative office for the Balkans and Serbia, construction of the future factory? two 110kV substations, worth over €5 milcould you tell us your view of current - Our experience tells us that the most lion, in Bosnia-Herzegovina. Meanwhile, energy sector trends and the value of vulnerable companies are those operatin Germany, our company RSE Solutions the regional market in your business ing in only one service sector. Every marhas been operating solidly, mainly in the segment? ket disruption jeopardises operations. In area of design and working on low-volt- Considering the fact that changes in the order to have a stable company, it is image and industrial facilities. ■ structure of power production, i.e. the tranportant to diversify operations. Apart JANUARY

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MEDIA

REGIONAL

NEWS

“I would like to see neutral, independent media, which take difference stances, differentiated, nuanced views on various topics, and this refers to the entire region.” — JOHANNES HAHN,

Commissioner for European Neighborhood Policy and Enlargement Negotiations

Footwear firm Deichmann, global logistics company DHL and software designers Infinum were the winners of the 9th annual ‘Best Employers in Croatia in 2015’ awards. Organised by leading employment agency MojPosao, more than 3,000 employees took part in surveys, covering such things as employee loyalty, work organisation, working conditions and interpersonal relations.

The title of best large employer in Croatia in 2015 went to Deichmann. Shipping company DHL International won best employer in the category of medium-sized employers and Infinum software design and development company was named the best employer in the category of small companies.

CROATIA

Best Employers in 2015

FYR MACEDONIA

Free Industrial Zones Expected to Top €1.5bln Viktor Mizo, director of the Technological Development Zones (TIRZ), announced that he expects total exports from these industrial parks to exceed €1.5 billion in 2015.

The zones, built close to the major Macedonian populated centers and offering a range of subsidies and pre­prepared lots for construction, have drawn manufacturing investments from Germany, the United States, the United Kingdom, Belgium and a number of other countries.

“We expect that exports from the zones will be higher than our projections. December is a peculiar month, when many of the VIKTOR MIZO plants in Western Europe we produce parts for are closed, but there is a chance we end the month with over €100 million in exports, and to break through the €1.5 billion barrier for the entire year”, said Mizo.

Investment of €200mln in Railways

AGRON THAQI

Kosovo railways will undergo substantial improvement, especially one of the key rail line, from Hani Elezit to Leshak, said chairman of Kosovo railways in-

ty of trains in Kosovo. “We have signed a contract with a German consulting company for the first 60 km of the railway. This improvement will enable the increase of velocity of the existing trains. It is important that the railway provide the velocity of 120km/h on the most part of the segment”, said Thaci.

Sofia Tech Park, a stateowned high technology park, opened officially in the Bulgarian capital. “What we see is just the first step towards a much more ambitious goal - building a knowledge economy driven by aspiring entrepreneurs and innovative ideas,” said Bozhidar Lukarski economy minister at the opening nanced by the EU with a grant ceremony. The project is almost entirely fiof 83.5 million levs (€46.9 million). A further 52.1 million levs are expected to be invested in the project under the EU’s Innovations and Competitiveness operational program, the ministry added.

Sofia Tech Park is designed to span 270,000 square meters, including 40,000 square meters of scientific research infrastructure in support of Bulgaria’s innovative businesses.

Photo: Sofia Tech Park BULGARIA

High-tech Park Opens in Sofia

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Tarom Sees 2015 Loss at €11mln Romanian flag carrier Tarom expects to post a gross loss of 49 million lei (€10.8 million) in 2015, local media reported in December.

In June, the government approved the company’s 2015 business plan, setting a loss target of €1.8 million.

“If we are not affected by the winter, we should conclude 2015 with a 49 million lei loss,” said Christian Heinzmann, Tarom’s general manager In 2014, Tarom posted a loss of €24.3 million on a turnover of €243,6 million, data from the finance ministry showed.

10 THINGS

KOSOVO

frastructure, Agron Thaci, following the signing of the second part of the total loan value of around €200 million. The investment will concentrate on the reparation of all components - superstructure and substructure, and the electrifying of the whole segment.

Reparation of the railway segments will increase the veloci-

ROMANIA

TO FOCUS ON IN 2016

Take action now so 2016 gets off to a good start. Here are 10 key areas that you should focus on:

1. Review the products and services you sell and tailor your offering to appeal to changing market demands and needs 2. Review pricing structures to ensure competitiveness and profitability 3. Review stock levels to make sure you can satisfy customer demand 4. Review sales, marketing and promotion plans and make sure they are optimized to help achieve the best results 5. Review staffing plans and confirm acceptance of the rosters by all staff 6. Review fraud and theft protection systems 7. Review debtor lists and actively chase all overdue accounts 8. Review the use of finance products for effectiveness 9. Prepare for future trends 10. Complete a business plan for 2016

ENLARGEMENT

DID YOU KNOW

“There is no doubt that the future of the Western Balkans is in the EU - the EU remains committed to the policy of enlargement to that region.”— DONALD TUSK, President of European Council MONTENEGRO

Etihad and Montenegro Airlines Start Negotiations Etihad Airways and Montenegro Airlines have held their first joint meeting since the two signed DALIBORKA PEJOVIĆ, CEO, a Memorandum of Understanding (MoU) for Montenegro Airlines Strategic Commercial Cooperation in November 2015. Etihad’s Vice President for HR Operations, Sinead Kilkelly, and the carrier’s Manager for Projects, Bojana Galebov, met with Montenegro Airlines’ CEO Daliborka Pejović, Executive Director Lidija Pantović, as well as the Vice President of the Board of Directors Predrag Marković and the country’s Deputy Prime Minister Duško Marković. The group discussed Montenegro Airlines’ organization structure in detail, which the Abu Dhabi-based carrier is working on revamping in a bid to boost efficiency. Etihad Airways stressed it was satisfied with the level of cooperation shown by its Montenegrin counterpart so far, as well as the quality of information the airline has passed on.

BOSNIA AND HERZEGOVINA

Tuzla and Mostar Airports Cleared for Cargo Bosnia and Herzegovina’s Council of Ministers has cleared Tuzla and Mostar airports for cargo flights used for the export of products of animal origin. In November Tuzla Airport announced it had reached an agreement with Turkish Airlines to run at least two weekly flights, operated by an Airbus A330200 freighter aircraft, for the export of animal origin products but required state clearance beforehand.

Tuzla and Mostar have been eyeing the export of chilled beef to Turkey.

Currently, only Banja Luka Airport is handling such shipments. In September, Banja Luka Airport said it would invest additional funds in improving cargo infrastructure at the airport, but warned that its operations could be jeopardized if Tuzla is issued cargo clearance reports Ex-YU Aviation News

30% or 1,800 of endemic species of Balkan flora have a home in Bosnia and Herzegovina

HUNGARY

Company Payment Discipline Improves

Payment discipline among Hungarian companies improved in the third quarter of 2015, as 70% of invoices were paid on time, a slight increase from 67% one year earlier, according to consulting firm Bisnode.

On average, firms settled their invoices in 24 days, one day less than

a year ago, which is a positive trend, Bisnode noted. The average payment period varied in a range of 2436 days between sectors. Catering is considered the most risky sector, as it has the highest rate of insolvency, even as the sector reported a good year backed by a strong summer season.

ALBANIA

EBRD Supports Women in Business Program The European Bank for Reconstruction and Development (EBRD) is supporting the development of women entrepreneurship in Albania with a €2 million senior loan to Intesa Sanpaolo Banka Albania (ISBA). The loan is being extended under the EBRD’s €20 million Western Balkans “Women in Business”- program for on-lending to women-led small and medium-sized enterprises (SMEs) in Albania. ISBA will be the first bank to join the framework in Albania.

The financing will be complemented by technical assistance to partner financial institutions and tailored advisory services for women-led SMEs. The program is jointly supported by the governments of Italy, Sweden and Luxembourg and the EBRD Shareholder Special Fund.

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CORPORATE

GORAN RADOVIĆ, MANAGING DIRECTOR AT VOSSLOH COGIFER - VOSSLOH MIN SKRETNICE

Small Switch, Big Success After achieving success abroad, Vossloh MIN Skretnice this year dedicated a significant part of its production to Serbia for the first time

Y

ear after year, regardless of the direction of travel, a switch will be crossed by countless trains. Speed, load and frequency of trains are becoming higher and higher.

This is why continuous improvement is the only way to respond to growing customers’ demands.

Vossloh MIN Skretnice, as part of the newly established Vossloh Customised Modules division, offers single-source solutions on the basis of worldwide experience and skills in the development and manufacturing of project-specific switch systems. Its products play an important role in making rail transport cost effective, safe, and environmentally friendly.

■ Which opportunities have the announced rail sector reforms provided for Vossloh MIN Skretnice?

- The company is investing constantly in people and machining capabilities, which create a strong basis for the expected further growth of our business. Naturally, there is a close connection between our development and the level of infrastructure investments in the region, both in railways and in urban railguided transport systems. Modernisation of rail tracks, with numerous projects launched or in preparatory phases, will finally give us an opportunity to provide a broad range of our products to our domestic market.

■ What do you consider as your optimal portfolio when it comes to domestic and foreign orders?

- I have to highlight that this was the first year in 36 |

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which a significant part of our production was dedicated to projects in the Republic of Serbia, having previously been orientated mostly for export. We are very proud that we cooperated with RZD International on the Belgrade to Pančevo rail line project, as well as with Energoprojekt on the new Belgrade Centre passenger station. Our advanced technology tramway switches and crossings are installed in Vojvode Stepe Bulevard and Autokomanda Square in the Serbian capital. However, our products have also been delivered to other European countries: Greece, Slovenia, Bosnia-Herzegovina, Macedonia, Poland, Croatia, Germany and Luxembourg. Our expectations are that the local market will certainly grow in the coming years, powered by the strong will of the

which is continuing throughout the whole of the Vossloh Cogifer group and in which we are investing a lot of time and resources. An amazing transformation is already changing our minds and this will provide significant benefits through our passion for continuous improvements. Customer satisfaction, as our primary task, is a key driver of all our actions.

Serbian Government to complete pan-European corridors. Nevertheless, basically half of our production capacity will remain focused on export.

■ Would you say that this is the right formula for success?

- Obviously we have found the right way.

Again, we have a record year coming to an end, with outstanding results in terms of sales and profitability secured. The high performance we have achieved is now standard, expected both on the customer and on intercompany side. Vossloh MIN Skretnice team, reinforced in the last couple of years with young engineers and operators, is passionately willing to continue this trip. ■

■ How much progress have you made to date on your idea to establish a design centre within VMS? - Our designers are already recognised and a good level of cooperation has been established with collegues from all around Europe. Development of “Borderless design” is ongoing and all units of the Group will share common software and a common database. In addition, our design department will hopefully move to a new building next year.

Still, we are always developing new ideas and, for example, we want to create a service activity in connection with our core business: manufacturing switches and crossings.

We also actively support the corporate policy of “One Vossloh”, with Vossloh MIN Skretnice products play an the introduction of Vossloh’s Core important role in making rail transport cost components and Lifecycle solutions effective, safe, and environmentally friendly divisions on our market.

■ In which areas have you channeled most of your investments and how does VMS stand in that respect, compared to other companies within Vossloh Cogifer?

- We can speak about investments, but not only in machines and buildings, although we continue with our original plan of improvements.

Our focus is on Lean transformation, a process

CORPORATE

NELA CERO, COMMERCIAL SECTOR HEAD AT PPT INŽENJERING A.D. BELGRADE

Successful Combination of Knowhow and Tradition PPT Inženjering a.d. Belgrade today represents a positive blend of knowledge in the field of hydraulics, pneumatics and centralised lubrication with grease and oils, as well as a long tradition of almost 60 years and a large number of references both at home and abroad serving as the best proof of its presence and continuous development on the market

P

PT Inženjering a.d. Belgrade is the only company from the composition of Prva Petoletka from Trstenik to have been privatised and continued operating successfully in the framework of Russian concern Trest Gidromontazh from Moscow.

■ Given the high number of capital projects that have been launched in Serbia, where do you see the most room for your engagement?

- During 2015, we participated in the repair of hydraulics and lubrication on the combined machine at the Kostolac surface mine. Likewise, we implemented several contracts with public entterprise EPS Serbia - Đerdap branch. This relates mostly to regular maintenance and the modernisation of existing equipment, as well as the delivery of spare parts. We expect to move forward with the implementation of largescale investment activities, primarily in EPS, at Sartid, Petrohemija and in the processing industries. Announcements and investments to date mainly passed us by, as they did most enterprises from the metals industry, which many consider as being on its last legs. We think this will not happen and should not be allowed to happen. Serbia must strategically orientate itself towards our complex.

■ Which projects from the previous year would you single out as being the most important?

- Like in the past twenty years, the most important projects in 2015 were also implemented in the fields of hydroelectric engineering and water management. For Russia’s Nizhny Bureya Dam Hydroelectric Power Plant we carried out the the design, production and delivery of an electro-hydraulic system for managing segments and emergency/overhaul shutdowns. During 2015, work began on the realisation of a project to replace and modernise the electro-hydraulic equipment for the Sayano– Shushenskaya Hydroelectric Power Plant, one of ■ What are your plans for 2016? the world’s biggest HPPs, for which we have al- PPT Inženjering is today in a posiready delivered the equipment. Repeated coopertion to compete for work on an equal ation is the best confirmation of knowledge and quality. In cooperation with a Russian company, PPT Inženjering is today in a position to compete for work on an we are again designing and supplying equipment for the Rogun Dam hydroelectric power plant in equal footing with reputable international companies, primarily Tajikistan, the highest embankment dam in the in terms of respecting deadlines and ensuring quality. With world, where our previously installed equipment experience working with major, significant clients, continuous is running faultlessly.

improvements and monitoring of the latest developments in the

■ Which markets are you most prevalent on field of hydraulics, PPT Inženjering will readily await the launch and in which areas of expertise does your of major investment projects in Serbia, primarily in EPS, Sartid, company stand out from the competition?

Petrohemija and the processing industries - PPT Inženjering is a company that, in terms of its operational concept, is unique in the Balkans, and perhaps even in Europe. Our engineering offer is complete: from design and footing with reputable international companies, primarily in terms of development, through manufacture, installation, commissioning and mainterespecting deadlines and ensuring quality. Design is being finalised and production commencing on equipment for the locks on the Volga-Don nance of the most diverse fluid technology systems. That is rare, because elsecanal, hydraulic systems for equipment (for the Lipetsk Plant in Ruswhere in the world you must contact a variety of companies in various areas related to fluids. We developed as part of the large production system of Prva sia), MHE Vrgudinac, in Serbia for Goša-Fom, while negotiations are also Petoletka from Trstenik, but we gained extensive experience as designers of underway for new jobs (HE Sangtudinskaya in Tajikistan and HE Tulumsystems, with components from the world’s leading manufacturers. skaya in Russia). ■ JANUARY

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CULTURE WORLD NEWS

“Cultural diversity and cultural change are desirable and inevitable. We are cultural animals, someone without a culture is not human.” — MARTIN WOLF, Chief economics commentator at the Financial Times

ITALY

CHINA

World's No. 1 Electric Car Market

Electric car sales in China are expected to reach 220,000 to 250,000 this year, surpassing the U.S. to rank first worldwide, China Association of Automobile Manufactures (CAAM) forecast. Worldwide electric cars sales will hit 600,000 and the figure for the U.S. market is estimated to be 180,000. Although China

has achieved rapid development in electric vehicles, quality instead of quantity should be focused on for the sustainable development of the industry. In particular, vehicle safety and the quality of batteries should be carefully examined and supervised. China's new energy vehicle sector has seen explosive growth in the past two years, thanks to the government's support policies including subsidies and tax cuts.

In the first ten months, the sales of electric cars surged 290 percent year on year to 171,145.

Source: Xinhua

Barclays Sells Italian Branch Network Barclays has agreed to sell its Italian bank branches to CheBanca!, the seven year-old retail arm of Mediobanca, the banks said, confirming a Reuters report.

NORWAY

Telenor Announces Divest of Shares in VimpelCom The Norwegian Telenor Group has announced its intention to divest all its shares in VimpelCom Ltd., where the company has an economic stake of 33 per cent. VimpelCom Ltd. has gradually contributed less to the value of Telenor Group, and the value of Telenor’s core operations have increased rapidly.

Telenor Group has invested NOK 15 billion (€1.3 billion) in VimpelCom. The company has received NOK 20 billion (€2,4bln) in dividends and the current market value of the ownership stake is approximately NOK 20 billion.

SPAIN

Abengoa Facing $29.6bln Bankruptcy A Spanish solar energy company Abengoa is on the verge of collapse, potentially leaving international banks on the hook for around $29.6 billion.

Abengoa has received $3.74 billion in loans from the U.S. government since 2010 to construct several large-scale solar projects, looks set to become the largest bankruptcy in Spanish history.

Gestamp, subsidiary Gonvarri, had planned to buy up 28% of Abengoa for some €350 million, which would have made it the renewable energy firm’s biggest shareholder. But the deal fell through, and a court in the city of Seville — where the company is headquartered — launched bankruptcy proceedings, which offers Abengoa protection from creditors for up to four months until it finds a solution. Unions and politicians are increasingly concerned about the fate of the 70-year-old firm, which employs 28,700 people around the world, including 7,000 in Spain.

Early last month chief executive Santiago Seage had resigned as the company announced the start of insolvency proceedings.

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The disposal is the latest by Britain’s third-biggest bank by market capitalisation as it looks to sell its continental European retail banking operations and focus on its core business, which includes corporate and investment banking.

Under the deal CheBanca! would acquire 89 branches from Barclays with 220,000 clients, residential mortgage loans worth €2.9 billion and 620 staff. As part of the transaction, Barclays will refinance the unit with €237 million before passing it to CheBanca!

5 THINGS

BUSINESS LEADERS SHOULD LEARN

Here we offer five advices important for business leaders in every industry.

1. Map back to the company vision 2. Set reasonable, revisitable priorities 3. Be able to adapt-even late in the game 4. Prioritize the customer 5. Constantly collaborate and, whenever possible, in-person

CAPITALISM

DID YOU KNOW

“There are different ways to organise capitalism. Free-market capitalism is only one of them-and not a very good one at that.” — HA-JOON

The Rubik’s cube is the best-selling product of all time. The iPhone is second.

CHANG, South Korean institutional economist

WORLD

RUSSIA

The 10 Smartest Countries in the World

Elite Real Estate Boom in Moscow After a slow year on Russia's housing market caused by the country's economic crisis, Moscow is starting to see a growth in sales of elite property, the Kommersant newspaper reported.

In November, the demand for elite real estate in Moscow rose by 25 per cent compared to the same period last year and by 50 per cent compared to October. The experts attribute the growth in sales to the discounts for new housing being offered by developers and the amendments to the Tax Code

— which increase the period of time after which the owner can sell the purchased property without having to pay taxes from three to five years. The changes come into force on 1st January 2016.

LATVIA

Parliament Grants €80mln Loan to airBaltic

INDONESIA

Officially Joins OPEC Again

The Latvian parliamentary committee on budget and finances (taxes) approved the plan for a Treasury loan to the national airline airBaltic and its subsequent capitalization, u under condition that the airline must not buy, rent or use military equipment of any kind.

WIDHAYAWAN PRAWIRAATMADJA

The provision is apparently intended to prevent the airline from purchasing Russian-made Sukhoi Superjet aircraft as there have been reports that this is what the new financial investor might expect from airBaltic.

Indonesia is once again officially an active member of OPEC, said Widhayawan Prawiraatmadja, Indonesia’s Governor for OPEC, in a statement. The reactivation of the Indonesian membership was marked with its participation in the 168th Session of OPEC in Vienna, Austria."Now, Indonesia is in the transition process which is dominated by a shift from fossil energy to new and renewable energy that is sustainable in the future," he said.

SLOVAKIA

Men Earn 27% More Than Women

The OECD tracks new college degrees in 40 of the world's most advanced countries. Now the group has released its 2015 Science, Technology and Industry Scoreboard report, which includes data up to 2012. The ranking is based on the percentage of science, technology, engineering, or math (STEM) degrees awarded per capita so that it's a fair comparison between countries with different populations.

The average salary in Slovakia in the first half of 2015, according to a fresh survey by the internet portal Platy.sk, was €929 a month, with Bratislava topping the list of best paid jobs, as always. In the region of Bratislava, the average salary comes to €1,280, while the lowest average salary can be found in the Presov region, at €808. The survey also pointed to the existing pay gap in Slovakia between men and women, with men making an average of 27% more than their female counterparts. The top paid jobs are in management and higher qualified jobs, while the services industry laments the lowest paid jobs, with the hotel, tourism and catering sectors coming out worst.

Here is how 10 of the smartest countries in the world stack up when it comes to science degrees: 1. South Korea (32%) had the top 10's largest drop, from 39% in 2002, even though the country retained its position at the top of the OECD's list; 2. Germany (31%) had the third-highest average annual raw number of STEM graduates at about 10,000, right behind the US and China; 3. Sweden (28%) is just behind Norway for most computer use at work. Over three-quarters of workers use computers at their jobs; 4. Finland (28%) publishes more research about medicine than in any other field; 5. In France (27%), most researchers are employed by industry rather than the government or universities; 6. Greece spent only 0.08% of its GDP on research in 2013. It might explain why its STEM degree rate dropped from 28% in 2002 to 26% in 2012; 7. Estonia (26%) has one of the highest percentages of female STEM graduates, at 41% in 2012; 8. Mexico moved up despite the government abolishing tax breaks for businesses investments in research and development; 9. Austria (25%) has the second-highest number of working-age PhDs, with 6.7 female and 9.1 male doctorate holders per 1,000 people; 10. Portugal had 25% of its students graduate with a STEM degree and has the highest percentage of doctorate holders (72%).

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