Business Dialogue

BUSINESS DIALOGUE

BUSINESS LEADERS’ MEETING POINT

NOVEMBER 2015

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LINDSTRÖM: Reliable Partner

Magnet for Further Investment

NENAD BOŽOVIĆ Managing Director

DRAGAN KOSTIĆ

Director of Free Zone Pirot

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Hearts and Minds for the 21st Century

We’re Pushing Boundaries Through Innovation

DR ROB RISCH

Director of The International School of Belgrade

BILJANA NAUMOVIĆ

General Managing of the Representative Office of AstraZeneca

BUSINESS DIALOGUE

INTERVIEW

LINDSTRÖM:

Reliable Partner NENAD BOŽOVIĆ MANAGING DIRECTOR

In just one year of being present on the market, Lindström’s innovative concept of offering services in workwear and mats management has been recognised by over 800 domestic and international clients in Serbia www.lindstrom.rs

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indström’s approach to managing services of maintaining workwear and mats allows companies to obtain a professional and efficient services that allow them to devote time to their core business activities.

■ To what extent are Lindström’s services recognised today on the Serbian market?

- Although our services are relatively new concept in Serbian market, after just a year of presence we have achieved remarkable results. We are currently working with more than 800 clients at over 1,300 locations throughout Serbia, but there is still a lot more room to grow.

■ What services are offered by your new service centre in Belgrade?

- Our service centre in Belgrade offers professional textile rental services. Our workwear rental service includes design, manufacture, maintenance and disposal, while representing a unique way of managing work uniforms that are always available on time, for the right person and at the 28 |

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right place. Combined with our mat services, our workwear service guarantees health, hygiene and safety of people and processes. Moreover, our services contribute to strengthening the corporate image of our clients and better cost control without large initial investments. One of the key advantages of certified Lindström services is that they enable partners and their management to focus on their core business activities.

■ What have your first experiences of operating in the country been like, and what is your strategy for further expansion on the domestic market?

- Although Lindström successfully provides services to many international and domestic companies in various sizes and industry branches in Serbia, many other companies are yet to learn and accept advantages of our services. Our current focus is on the growth of the service network in the market, but also to ensure that the quality of our services is at the desired level, guaranteeing maximum satisfaction of our clients. ■

Lindström’s complete service enhances the business of clients through efficient and effective services of managing workwear and mats

BUSINESS DIALOGUE

INTERVIEW

Magnet for

Further Investment DRAGAN KOSTIĆ

DIRECTOR OF FREE ZONE PIRO T

Free Zone Pirot is at the forefront of Serbia’s free zones, providing foreign investors with all logistical services in one place and announcing new expansions to cater for the interests of larger players

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he recent 2015 Global Free Zone of the Year Award for a sub-regional free zone, as well as new tenants in the extended zone, serve to prove that superior world standards have been applied at Free Zone Pirot.

■ Free Zone Pirot is to be expanded by 24 hectares in order to enable it to receive new tenants. Which companies are set to expand their production and how this will impact on Free Zone Pirot’s overall results?

-We expect the further expansion of the operations of Tigar Tyres and companies that provide services to Tigar Tyres, as well as the extension of 14 existing production companies which operate in Free Zone Pirot. We also expect new companies that have expressed an interest in operating at Free Zone Pirot in recent years, but which we were unable at the time to provide with the infrastructure conditions required for their operations. Besides the aforementioned, we also plan to construct a bimodal terminal (road/rail) with all logistical services in one place. We expect certain companies to construct warehouses and establish a distribution centre there.

■ Free Zone Pirot recently received the Global Free Zone of the Year 2015 Award for a sub-regional free zone.

What does this award mean for the further development of the zone?

-This is recognition for the results achieved in the last 20 years. This means that we are doing well, in accordance with world standards and requirements for the development of investment locations.

We will continue providing the best logistical services to our tenants and further extending the

trade and financial incentives Serbia offers investors for the creation of new jobs, free zone tenants and users are able to introduce goods and purchase equipment and services without paying customs duties and VAT, while they are exempt from paying local fees and taxes for the construction and exploitation of

territory of the zone as we strive to provide conditions for major tenants who require a large area for their development.

facilities. Some free zones, including Free Zone Pirot, provide all logistical services in one place: organisation of integral transport, freight forwarding services, a customs terminal with the presence of bonded warehouses and production facilities, land fully equipped in terms of infrastructure and professional staff for various activities.

We expect to attract more tenants (investors) who want to locate their investments here in the next year and employ more people.

We expect to attract more tenants (investors) who want to locate their investments here in the next year and employ more people

■ What makes free zones in Serbia attractive to foreign investors and what output do you expect from these zones in the next year?

-Free zones enable more efficient operations and significant cost savings for investors by integrating all advantages in one place.

In addition to the benefits of the

■ You recently attended the first international conference and exhibition of the World Free Zones Organisation (World FZO). What are the major global trends when it comes to developing the free zones business model?

-The first international conference of the newly established World Free Zones Organisation was held in May this year. The conference gathered together the most prominent representatives of free zones and investors from all around the world.

The most important goal of the three-day conference was to create a strategy of free zones as an effective instrument for attracting direct investment using the experience and knowledge of the world’s most successful free zones.

The point is to have a politically stable climate in the area, to decrease all taxes as much as possible (0% taxes preferred), to simplify all procedures for the issuance of construction permits, export/import procedures, to efficiently provide all logistical and administrative services for tenants in one place and to enable tenants to concentrate on taking care of their core business. ■ NOVEMBER

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BUSINESS DIALOGUE

INTERVIEW

Hearts and Minds

for the 21st Century DR ROB RISCH

DIRECTOR OF THE INTERNATIONAL SCHOOL OF BELGRADE

In a warm and welcoming atmosphere, students are provided with challenging and comprehensive education that enables them to understand and successfully engage with the ever-increasing complexities and interconnectedness of our world

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he International School of Belgrade’s curriculum is holistic in nature and concerned with the whole child – it supports their intellectual growth and academic success, as well as their human capacities.

■ What criteria do potential pupils have to meet in order to be admitted to ISB? - Students need to demonstrate that they are able to meet our academic expectations, and that they will embrace and contribute to our mission, vision and core values. Regarding academics, in the early grades there is no prerequisite for English language level; students learn English quickly, while immersed in classroom situations, and in addition we provide English language support for those who need it. We can also provide English language support for older students, as long as the student is able to access the concepts within each of the subjects, given this support. We require families to submit prior academic reports for students transferring from other schools, and we examine these closely to ensure students have the capacities to be successful academically in our school. In terms of the dispositions to which we all aspire, these are outlined in our core values of empathy, integrity, re30 |

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spect and responsibility. We expect our students to be committed to developing the ten attributes of the IB learner profile: inquirers, knowledgeable, thinkers, communicators, principled, open-minded, caring, risk-takers, balanced and reflective.

These attributes are established in harmony with intellectual growth and academic success.

■ How does the IB curriculum differ from other educational programmes and why did ISB choose to join this programme?

- The International Baccalaureate Diploma Programme (DP) was established to provide a challenging and comprehensive education that would enable students to understand and successfully engage with the ever-increasing complexities and interconnectedness of our world. The academic rigour in the DP is externally moderated through exams and our students perform significantly above the global averages on these. ISB also offers the Primary Years Programme (PYP) for students in Pre-Kindergarten to grade five, and the Middle Years Programme (MYP) for students from grades six to 10. The IB programmes encourage students to become active, compassionate and lifelong

Successful completion of the programmes we offer allows our students to gain acceptance at, and sometimes advanced placements in, competitive universities all over the world learners. Our ISB curriculum, based on the IB programmes, is holistic in nature, meaning that it is concerned with the whole child.

In addition to challenging academics and cognitive development, IB programmes address students’ social, emotional and physical wellbeing. ISB has chosen to offer all levels of IB programmes,

because they focus on the values and outcomes of internationally minded learning, and we agree with the belief that people who are empowered to create a more just and peaceful world need an education that crosses disciplinary, cultural, national and geographical boundaries. Successful completion of the DP enables our students

to gain acceptance at, and sometimes advanced placements in, competitive universities all over the world.

■ What skills does collaborative learning provide?

- When students learn collaboratively they reinforce and deepen their knowledge and understanding through discussion, and by exchanging ideas they are able to view concepts through different lenses and from varying perspectives. They develop important social skills like active listening and being able to disagree without causing offense. Many other important life skills are fostered, for example critical thinking when analysing data and opinions presented by others. The list of skills is quite comprehensive, and fits with the opening phrase of the ISB Mission Statement: “ISB is a collaborative learning community …”

■ How does the programme address the needs of children of different ages?

- Each level of our school, from early childhood, with our youngest learners at age three, up to grade 12, is staffed by experts in their fields. Sixty per cent of our faculty members have masters or doctorate degrees, as well as extensive teacher training and content knowledge specific to the age groups they teach. When you combine their informed and

caring guidance with an age-appropriate curriculum as framed within the PYP, MYP, and DP, the result ensures that the needs of children of different ages are addressed successfully.

■ How do students from different countries learn to fit into ISB’s community?

- Our community is warm and welcoming, and since it consists of over 40 nationalities, new students feel like they’re part of this international

School, such as yoga, model-making and aikido. In addition, we are a member of the Central and Eastern European Schools Association (CEESA) and participate in athletic and activity tournaments with other member schools.

■ Which of your students’ achievements make you the most proud?

- My greatest source of pride is the students’ learning in relation to providing a service to the com-

Sixty per cent of our faculty members have masters or doctorate degrees, and extensive teacher training and content knowledge specific to the age groups they teach

community regardless of the country that issues their passport, or the country in which they last resided.

The rich diversity of cultures, customs, appearances and languages is valued and celebrated, and new students naturally join and contribute to this.

■ Which after-school programmes does ISB offer?

- ISB has a comprehensive and diverse range of offers for students after school. At our Lower School, we regularly offer around 30 choices of arts, crafts, sports, dance, drama and special interest groups, like the chess club. We also have a rich variety of choices at the Upper

munity. I have had the opportunity to join our older students at the Miksaliste refugee centre and to work alongside them in the distribution of clothing, shoes, food and hygiene items. Watching them interact with the migrants showed that our students truly understand the difficulties migrants are facing, and by volunteering their Sundays they demonstrated their caring and their commitment to help.

Our entire school community has contributed to gathering items needed by the migrants. Similarly, all of our students were very devoted to helping victims of the floods in Serbia in 2014, and our

older students were involved with working to re-open a school for individuals with special needs in Obrenovac. On a more permanent basis, we have groups of students regularly spending time with orphans, senior citizens and individuals living with disabilities at a vocational school.

Students reflect in writing about their experiences, and this excerpt demonstrates some of the learning that takes place: “During the ‘Relief for Obrenovac project’, my classmates and I refurbished a day care centre in Obrenovac and prepared activities for individuals with disabilities from the centre. In this way we wished to contribute in providing humanitarian help and attending to the needs of the victims of a horrifying natural disaster.

The most memorable moment for me was when we organised an afternoon of sporting activities. They loved all three, but especially experienced tremendous joy in playing the basketball game. No matter your disability or limitation, you can accomplish great things and participate in activities you love. Another memorable moment for me was witnessing the way each of them reacted to winning or losing. To them no one was the victor or the loser. Their appreciation of each other does not let them categorise one as the victor and the other one as the loser.” ■ NOVEMBER

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BUSINESS DIALOGUE

LOCAL NEWS

MERCEDES-BENZ

IMPLEMENTATION “Gradual economic recovery can be expected in Serbia and Montenegro, but the process could be hindered by a lack of reforms and inadequate implementation of fiscal consolidation.” — ELLEN GOLDSTEIN, World Bank Country Director for SEE TELENOR BANK

Sportier Choice Mercedes-Benz is combining two classes of vehicle – each with its own distinct style – to create a new model: the Mercedes-Benz GLE Coupé. The sporty nature of the coupé dominates, imbued with the striking characteristics of a robust SUV. With its flowing side contour, elongated and low windscreen, striking radiator grille with central chrome louvre and rearend design, the GLE Coupé boasts styling features typical of particularly sporty MercedesBenz models. At the premiere, the GLE Coupé will be available as a diesel or petrol mod-

First Online Credit Line

Telenor Banka has introduced the first online credit line offer in Serbia. This unique offer is actually a 3-in1 product. The credit line can be used as a revolving credit card, or as a loan for refinancing existing debts with additional available funds for spending, or for

contactless online payments, such as utility or electricity bills.

“With the introduction of the first online credit line, our banking value proposition is complete. By applying the synergy of telecoms and financial solutions, we continue to bring innovations and drive the further development of online banking in Serbia,” said Ove Fredheim, Telenor Serbia CEO and President of Telenor Banka’s Management Board. With over 100,000 accounts opened, Telenor Banka represents the region’s fastest growing online bank. According to NBS data, with a million more completed transactions, online banking has exceeded the turnover at branch offices for the first time ever.

HALK BANK

First Branch Opened in Serbia el with an output range of between 190 kW (258 hp) and 270 kW (367 hp). The top-of-therange model GLE 450 AMG, the first representative of a new Mercedes-AMG product line – the AMG sports models – is particularly attractive. In addition to a generous volume of standard equipment, the DYNAMIC SELECT handling control system, the Sports Direct-Steer system and the driver assistance systems typical of the brand, the GLE 450 AMG always comes with the 9G-TRONIC nine-speed automatic transmission and 4MATIC permanent all-wheel drive.

Following the purchase of 76.74% of the capital Čačanska Bank in May this year, for a price of €10.1 million, Halk Bank has now formally opened its first branch office in Belgrade. The opening ceremony was attended by Serbian Deputy Prime Minister Rasim Ljajic, Turkish Economy Minister Nihat Zeybekçi, H.E. Turkish Ambassador to Serbia Mehmet Kemal Bozay, and Mustafa Aydın, president of the Halk Bank Board of Directors. Minister Zeybekçi expressed confidence that Halk Bank will contribute to increasing the interest of Turkish investors for the Serbian market and improving economic cooperation between the two countries. “Halk Bank is today the fifth largest bank in Serbia, but our ambition is to be the biggest, in order for us to contribute to further improving economic cooperation between Serbia and Turkey,” said Aydın. Halk Bank was founded in 1938 and is the sixth largest bank in Turkey, with more than 900 branches and 17,000 employees in its home country.

SCHOLZ & FRIENDS

A Great Success at The Golden Drum Festival!

Scholz & Friends Belgrade has won the Golden Drum Award in Mobile Category at this year's Golden Drum Festival in Portorož. In competition of over 1200 entries from 35 countries.

Scholz & Friends Belgrade was awarded the highest award in Mobile Category for the application Sonochrome. Sonochrome "translates" colors from the environment directly into musical tones for the purpose of enabling blind and colorblind people to perceive in an entirely different way, enriching their experience of the world.

"We believe in the power of ideas and stories that are changing the world for the better," says a representative at Scholz & Friends Belgrade. The agency has already been awarded for the same application at the Digital Communication Award in, Berlin in September this year. The “golden team”, apart form the Agency team, also included four young programmers from Serbia - Lazar Radosavljevic, Djordje Relic, Nikola Cimbaljevic and Danijel Šaranovic, alongside Belgrade's Red Production.

Scholz & Friends Belgrade is the only German communications group in the Adriatic region and represents a unique blend of Germany’s well-known efficiency and the best local creativity.

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BRITISH AMERICAN TOBACCO

TDR Officially Joins BAT British American Tobacco (BAT) has finalised the previously announced process of acquisition of TDR d.o.o. and other company assets related to the tobacco industry and retailers of Adris Grup d.d., at a total cost of €550 million. TDR is a leading independent manufacturer of cigarettes in Southeast Europe, with a leading position on the Croatian market and strong positions in Serbia, BosniaHerzegovina, Macedonia and Montenegro. “The acquisition will further strengthen BAT’s position on the Serbian market, while also providing new possibilities for our factory in Vranje,” said Thanos Trimis, General Manager of BAT for Serbia, Montenegro and Bosnia-Herzegovina.

REFORM

DID YOU KNOW

“The government has launched the public enterprise reform, but did not expect the people would try to stop the process in every way.” — DUŠAN VUJOVIĆ, Serbian Finance Minister

TURKISH AIRLINES

New Belgrade – Miami flight In an effort to offer lovers of distant destinations the opportunity to enjoy the tropical climate and exotic beauty of the Atlantic coast, from 25th October Turkish Airlines has introduced a new Belgrade – Miami route.

Flights are available to passengers travelling from Belgrade to Miami and vice versa, while the Turkish Airlines’ offer includes daily flights via Istanbul, with excellent connections.

Miami is today a city of two million inhabitants and one of the most beautiful and popular tourist destinations in Florida. In addition to Miami, Turkish Airlines has flights to 11 other U.S. destinations, including New York, Chicago, Washington, Los Angeles, Houston, Boston and San Francisco, as well as Toronto, Montreal, Sao Paolo and Buenos Aires.

VOJVOĐANSKA BANK

Best in Realising Commercial Payments & Financial Transfers

Placements & postings

During its two-millennia-long history, Belgrade has risen from the ashes 38 times

appointments@aim.rs

STEFAN VANOVERBEKE

new CEO at IKEA Southeast Europe

Stefan Vanoverbeke has taken on the position of CEO at IKEA Southeast Europe, covering Romania, Croatia, Serbia and Slovenia, headquartered in Belgrade. He started his IKEA career in 1994, as a trainee shopkeeper, and climbed up the ranks to become national sales manager for Belgium. From 2001-2005, Stefan supported IKEA Italy with their operations, and from 2005-2009 he served as CEO at IKEA Poland. Under Stefan’s lead, IKEA Poland saw the fastest sales growth in IKEA worldwide and set the groundwork for strong expansion. Vanoverbeke has come to Belgrade after spending five years as CEO at IKEA France, where he oversaw the operations of 30 retail outlets employing 9,700 workers.

Stefan is Belgian by nationality and speaks five languages (English, French, German, Italian and a working knowledge of Polish).

Stefan is a married father of two children.

NELT GROUP

Revenue Up 39 Per Cent!

After two years of consolidating the operations of all companies within the Nelt Group’s organisational system, the group achieved a turnover of €539 million in 2014, while organic growth and contracting with new principals in 2015 led to Nelt Group increases its number of employees to 461, while revenue is expected to have grown by 39 per cent by year’s end. Nelt today employs a total of 3,760 people on seven markets and in 11 companies, making it one of the most successful domestic business systems. Nelt is a leader in providing top quality services in the fields of distribution, logistics, manufacturing, retail and marketing. In addition to doing business in Serbia, Bosnia-Herzegovina, Macedonia and Montenegro, Nelt MILOŠ JELIĆ, EXECUTIVE DIRECTOR, NELT GROUP is also expanding operations dynamically in sub-Saharan Africa (Angola, Zambia and Mozambique). This year saw the Group joined by company Banim Advertisements, a renowned producer of advertising materials, and Corner Shop, a retail chain that has launched a new development strategy through the modernisation of the visual idendtity of its retail outlets, advancing the range of products on offer and opening standardised facilities in Belgrade and elsewhere in Serbia.

“The professionalism and commitment we show are the best recommendation for the world’s largest companies, such as Philip Morris and Procter & Gamble, which have entrusted a big part of their business processes in several markets to Nelt,” said Miloš Jelić, Nelt Group executive director.

ERSTE BANK

The two largest foreign correspondent banks, Deutsche Bank and Comercbank, have declared Vojvođanska Bank the best in the field of commercial payments and financial transfer services.

The STP (straight-through-processing) Award, which was given to the bank, reflects a high level and exceptional efficiency and accuracy in transferring money destination banks and customers abroad, while reducing transmission costs.

“We are proud that for the third year in a row our bank won this award, which confirms our efforts to provide our customers with the best service,” said Vojvođanska Bank staff.

NPLs Sold to Czech APS Fund

The Czech APS Fund has bought receivables from 85 companies with a total value of €23.5 million. The unpaid loans that have been sold were made in the last 30 years and in good part were

inherited from the Novi Sad bank. Companies in this package have largely been liquidated, while a fifth represent active companies that are under other blockages. Erste Bank is the one of the first banks operating in Serbian to sell its uncollectible receivables to a foreign fund. The bank plans to sell another NPL package by year’s end.

Erste Bank’s portfolio is the APS Fund’s second corporate portfolio in Serbia. The acquisition was financed by APS and will be serviced by APS Serbia. APS has also taken over and is servicing corporate portfolios of banks and companies in Montenegro, as well as corporate and retail portfolios worth about two billion euros in other Southeast European markets.

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BUSINESS DIALOGUE

INTERVIEW

We’re Pushing Boundaries

Through Innovation BILJANA NAUMOVIĆ

GENERAL MANAGING OF THE REPRESENTATIVE OFFICE OF ASTRAZENECA

Unfortunately, we’re currently in a vacuum when it comes to the innovative therapies that are available to patients in Serbia, who still lack the opportunity to benefit from innovative treatment methods

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e’re focused on developing new therapeutic modalities that push the boundaries of treating illnesses today. We are one of the few companies that cover all fields of innovative drug development, from researching and developing substances to their production, distribution and global commercialisation, says Biljana Naumović, general manager of AstraZeneca's representative in Serbia, speaking to CorD Magazine.

■ What are the biggest therapeutic challenges facing pharmacists today’s and what are you focused on as a company?

-The future of treatment for most diseases we are fighting today lies in discovering mechanisms that have so far remained unknown. We believe the best way for us to help patients is to remain focused on scientific discoveries that would lead to an understanding of these mechanisms in order to develop targeted therapies that would work on them. This is the basis of our work and the purpose of our company – for us to extend the frontiers of science in order

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to bring medicines to the world that alter a patient’s life.

We are focused on three key therapeutic areas – oncology, cardiovascular/metabolic diseases and respiratory/autoimmune/inflammatory diseases – and we believe that in these areas we will bring the most significant contribution to patients.

combination of small molecules and biological therapies, immunotherapy, protein engineering and innovative technologies, all of which is further supported by translational science and capacities to personalise the methods and modalities of treatment.

We build relations with partners throughout the aca-

■ There are increasingly more new possibilities for treatment and the quality of your company's innovation.

How is that reflected and what is your approach to research?

-In order for us to be in the best position to push the boundaries of science, we use and develop the capacities that few pharmaceutical companies have today. We develop and use a

demic world. We are also partners of all biopharmaceutical companies that have the same vision as we do, and with whom we can work jointly to advance new possibilities for the treatment of patients.

The primary focus at our research laboratories is on scientific quality, smart risk management, new ideas and smart decisions based on a clear and intelligible science. Only

The state must be included in order for the best treatment options to be available to patients in Serbia. At the moment the gap is too big between us and even the closest neighbouring countries. Something must be done immediately and new molecules must find their place on the list of medicines as soon as possible

in this way can we adequately understand the pathophysiology of diseases that will lead to the creation of a new generation of therapies that are now only dreamt about. That which we currently have in our research programme represents the very best of innovative developments in the pharmaceutical industry.

We direct this knowledge and resources to the improvement, promotion and creation of a new world – through a vision of responsible business, insisting on the responsibility of states and the responsibility of informed patients. We all have an important role in the sustainable and advanced system that we have to build, both in Serbia and elsewhere in the world.

■ What is the situation like in Serbia when it comes to innovative therapies and are we lagging behind in relation to the region and Europe and, if so, how much?

-Unfortunately, we’re currently in a vacuum when it comes to the innovative therapies that are available to patients in Serbia. In the past few years, despite the fact that the law has defined the process of add-

ing and removing drugs from the list of drugs covered by the Republic Fund for Health Insurance, not a single legally defined deadline has been respected, nor a single process of adding innovative drugs to that list. That resulted in a huge gap in the availability of treatment and the method and quality of treatment between our country and not only this in Europe, but also neighbouring countries like Bulgaria, Croatia, Romania and Slovenia.

A huge problem exists in the availability of treatment for patients with acute coronary syndrome or diabetes, and these are two diseases that represent a huge burden on our country’s healthcare system and that is precisely as a result of the inadequate efficacy of existing therapies that the Fund covers and the consequential effects that must be addressed in more expensive ways. When it comes pulmonology, we are also lacking with inhaled medicines that should be first-line therapies and which are, due to the degree of participation, available only to a very small number of patients. Solutions exist, opportunities are there, and our healthcare system has room to cover contemporary therapies.

We are here to offer solutions, which we do for both the Ministry of Health and the Republic Institute for Health Insurance. It is up to them to fully and consistently follow their own regulations and, through good will and focus on action, as opposed to words, we can come to a reduction in the gap that unfortunately exists between us and the rest of Europe.

■ How important is education and what kind of activities aimed at educating do you carry out in order to improve the knowledge of all market participants?

-In Serbia we support numerous educational meetings at which we present scientific evidence, discuss contemporary attitudes and present the latest recommendations for the treatment of diseases that are important to the medical community. In late July this year we were the general sponsor of the

cardiovascular comorbidity.

In addition to this, we work together with professional associations on the issue of pocket editions of the GINA (Global Initiative for Asthma) guide in the Serbian language, which will be published this autumn and distributed to all pulmonologists in Serbia.

Thanks to good cooperation with

We support numerous educational meetings at which we present scientific evidence, discuss contemporary attitudes and present the latest recommendations for the treatment of diseases that are important to the medical community expert meeting on Interventional Pulmonology, organised by the Clinic of Pulmonology of the Clinical Centre of Serbia and the Respiratory Society of Serbia. Besides this, we will be one of the general sponsors of the education course that will be organised by the Respiratory Society of Serbia under the auspices of the European Respiratory Society (ERS) on the topic of chronic obstructive pulmonary disease (COPD) and

the Global Initiative for Asthma, preparations are also underway for the first guide in the Serbian language for recognising and treating the syndrome of overlapping asthma and COPD (ACOS), as well as the most relevant topics in pulmonology today.

We are also dedicated to the education of pharmacists and regularly participate in FASUS (pharmaceutical meetings) covering a variety of relevant topics, and where we will this year

present the latest innovations in pulmonology and cardiology.

■ You also participate in numerous activities aimed at educating patients. Which activities would you highlight in this domain?

-Through our partnership with the City Institute for Pulmonary Diseases and Tuberculosis, in early May this year we marked World Asthma Day with the campaign “I have asthma, asthma does not have me”, at which citizens were able to obtain important information about identifying and treating diseases, as well as enabling them to consult with specialists in pulmonology. We are preparing a series of activities until the end of the year that are aimed at raising the awareness of the general population regarding asthma and COPD, while life will also be breathed into the first website for patients suffering from obstructive lung diseases and lung cancer.

All activities are aimed at ensuring patients can, with timely diagnosis and regular treatment, lead a completely normal life, without compromise and withdrawal. Besides pulmonology, we are present in the same way in two other key therapeutic areas: cardiology and oncology. Among other things, we are a partner in testing patients with lung cancer using an EGFR mutation that would enable them to have more appropriate and effective treatment; we participated in the participated in donation of devices and the organisation of the support of advanced genetic testing of BRCA testing for patients with ovarian and breast cancer.

We support the campaign “Experience Life”, which is organised by the three largest cardiology associations in Serbia, under the patronage of the Ministry of Health and the Public Health Institute. ■ NOVEMBER

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ILLUSION

BUSINESS DIALOGUE

"It is wrong to foster the illusion that it is possible for a small nation of two million people to stop, solve and rectify a situation where even much bigger EU member states have failed," — MIRO CERAR, Slovenian Prime Minister

REGIONAL NEWS

Croatian state-owned energy utility HEP said it has placed on the international markets a $550million (€484.6mln) bond due 2022 at 6.125%. The joint arrangers on the debt issue, which carries an interest coupon of 5.875%, were Banca IMI S.p.A., UniCredit Bank AG, and Morgan Stanley & Co. International plc., HEP said in a statement.

Earlier this month, HEP told SeeNews it had offered the holders of its bonds maturing on November 9, 2017, an option for early redemption. The bonds were issued on November 9, 2012, in the total amount of $500 million at 6%. HEP group owns and operates over 4,000 MW of installed generation capacity and 974 MW of heat production capacity, including 25 hydroelectric plants and eight thermal power plants fired by oil, natural gas or coal.

Source: SeeNews

CROATIA

HEP places $550mln bond due 2022

Best Year to Buy a House in Bucharest

fered by the First House program. This year will be the best year in the history of the residential market in Bucharest, according to Coldwell Banker specialists. About 11,000 new apartments might be completed in Bucharest and in the surroundings this year, more than in 2008.

Keeping Gas Transport Under State Control Bulgaria's Prime Minister Boyko Borisov has asserted the country is "actively working" to make sure "everything" that regards gas transportation is fully stateowned.

The gas transportation network of Bulgaria will be BOYKO BORISOV, BULGARIAN PRIME MINISTER a "key asset" in negotiations to set up a gas hub in the country. After the demise of South Stream, a pipeline project which was set to supply Southeastern and Central Europe with gas via Bulgaria, was abandoned, the government has been promoting the idea to establish a gas distribution center in the country. Some 20-30 billion cubic meters of gas could be transited via Bulgaria through the interconnections with Greece, Turkey and Macedonia when they are finished and after the gas depot in Chiren (NW Bulgaria) is expanded.

For the entire gas transportation network, reconstruction works will cost to the tune of BGN 204 M (€104 million).

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Mol Group signed an agreement on the purchase of Eni Hungaria Zrt., which operates 183 fuel stations under the brand Agip in Hungary and it is engaged in wholesale business, index. hu wrote. One of the aims of Mol is to expand

10 THINGS

BULGARIA

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Mol Buys Agip

its activities around the radius of its main refineries and to increase the presence in the retail market. Thus the company gets petrol stations in key locations and also strengthens its positions in Budapest. A few things still need for the close of the transaction, including the approval of the Economic and Competition Authority. The lubricant wholesale business of Eni is not part of the agreement.

ROMANIA

Apartments in Bucharest are three times more accessible nowadays, than during the economic boom, according to an analysis made by real estate consultancy firm Coldwell Banker.

A Romanian making the average net wage (some €410 per month) must now work about 11 years to buy a 50sq/m two-room apartment in Bucharest (if he used all the money he made to pay for the apartment). In 2008, he would have had to work 33 years to get the same apartment. The difference is due to the drop in the selling prices and the increase in the average salary.

Buying a new apartment has also became easier as the banks have reduced interest rates. The mortgage loans in Romanian currency lei have now much lower interest rates, closer to the ones of-

HUNGARY

YOU SHOULD NEVER DO WHEN STARTING A BUSINESS Embarking on a new venture is incredibly exciting. The possibilities are endless, your enthusiasm is sky-high and you can’t wait to get going. That is, until you hit a snag you didn’t expect!

Here are our top ten ‘don’ts’ to bear in mind when starting on your new venture.

1. Don’t try to be someone you are not 2. Don’t underestimate yourself 3. Don’t sell yourself short 4. Don’t be afraid to try new things 5. Don’t see failure as a negative 6. Don’t be too proud to ask for help or advice 7. Don’t listen to the haters 8. Don’t be a dead fish 9. Don’t be a slave to yourself 10. Don’t lose sight of why you are doing this and what is important

BORDER

DID YOU KNOW

“Croatia doesn't wish to seal its border to refugees, but will have no other option if Slovenia, Austria and Germany decide to do so.”

ALBANIA

— VESNA PUSIĆ , Croatian First Deputy Prime Minister

BOSNIA AND HERZEGOVINA

Favourable Working Conditions for Fishing

In Albania, the government has decided to reduce tax burden for fishermen in an effort to boost the fishing industry and partially meet the demands of this sector which have been addressed for years now.

The Albanian government has undertaken change in tax policies for the fishing industry supporting the drop of fishing costs. The fishing sector will benefit a refund of 80% in the value added tax (VAT) on the fuel that is purchased for fishing activities.

The longest recorded flight of a chicken was 13 seconds

Dubai Developer to Build $4.5bn 'Tourist City' in Bosnia A Dubai-based developer signed a €4.5 billion contract to build a “tourist city” in Bosnia, which has become a magnet for investment from the United Arab Emirates.

Sources from the ministry of Finance said that the amendment in the guideline for the value added tax has been made mid-October and has now come into effect. Previously, this refund was 10%. Source: ibna

MONTENEGRO

Montenegro and A2A Agree on Future Cooperation The Government of Montenegro and Italian-based A2A company have reached an agreement on the basic elements of future cooperation and the extension of cooperation once the shareholders’ agreement in the Electric Power Industry of Montenegro (EPCG) gets signed towards the end of the year, Minister of Economy Vladimir Kavarić told the press conference. Meanwhile, the interim agreement will be in force.

Both sides agreed on the obligations,

BAKIR IZETBEGOVIĆ, CHAIRMAN OF THE BOSNIAHERZEGOVINA PRESIDENCY AND ISMAIL AHMED

REGION

Marks & Spencer Leaving 5 SEE Countries UK retailer Marks & Spencer has announced it is pulling out of Bulgaria, Croatia, Montenegro, Serbia, and Slovenia. M&S has 12 stores (employing 106 people) in these five Southeastern European countries, three of them in Bulgaria. The goal is to "firmly focus" on "successful businesses in Romania, Czech Republic, Poland, Slovakia and Hungary," British media outlets quote an M&S spokesperson as saying. New stores will be launched in the Czech Republic and Poland over the next two years. The closure in the countries affected is set to begin in January.

Buroj Property Development plans to build thousands of homes, several hotels, a shopping mall and a hospital in the municipality of Trnovo at the foot of Bjelasica, one of four mountains surrounding the capital Sarajevo. Work on the complex is set to begin in April 2016.

“This is my life project and I hope that we will finish it without delay”, the company’s president Ismail Ahmed said at the signing ceremony. A tourist resort built by a Kuwaiti investor around 30 kilometres from Sarajevo was scheduled to open last month. Elsewhere, a Saudi company is building a new residential area comprising more than 200 villas in the hills of Sarajevo.

The project is slated for completion by the Source:The Guardian end of 2016.

FYR MACEDONIA

Skopje Opens €1.9mln Tender for Reconstruction

VLADIMIR KAVARIĆ, MINISTER OF ECONOMY

dynamics, and financial framework for the construction of the Block II of the Thermal Power Plant Pljevlja, as one of Montenegro’s major development projects in the energy sector. The Government and A2A have also agreed on a put option for A2A’s investment worth €430 million at the time of entering the EPCG in 2009. A2A is eligible to initiate this option in certain specific circumstances, and in that case Montenegro would be ready to pay €250 million in seven annual instalments for the A2A shares in the EPCG.

BOULEVARD SERBIA, SKOPJE

The Macedonian capital city of Skopje has opened a tender for reconstruction and expansion of Serbia boulevard with an estimated value of 119.5 million denars (€1.9 million), the European Union’s procurement journal announced last month.

The value of the contract does not include value added tax. Bids should be filed by November 2, according to the notice published on the website of Tenders Electronic Daily (TED).

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by Gregory Polek

BUSINESS DIALOGUE

AVIATION

Good News for the

Airline Industry

The world’s airlines expect to see a 31-per cent increase in passenger numbers between 2012 and 2017, according to a new forecast by the International Air Transport Association (IATA)

T

he report shows that by 2017 total passenger numbers will rise to 3.91 billion from the 2.98 billion carried in 2012. Of the new passengers, some 292 million will fly on international routes and 638 million on domestic routes, according to the report.

A consensus look at airline expectations, the report projects a 5.4 per cent compound annual growth rate (CAGR) between 2013 and 2017. Global passenger growth expanded by an average of 4.3 per cent each year between 2008 and 2012, largely reflecting the negative effect of the 2008 global financial crisis and recession.

The report indicates that the emerging economies of the Middle East and Asia-Pacific will see the strongest international passenger growth, experiencing a CAGR of 6.3 per cent and 5.7 per cent, respectively, followed

by Africa and Latin America at 5.3 per cent and 4.5 per cent.

Routes within or connected to China will prove the single largest driver of growth, according to the report, accounting for 24 per cent of new passengers during the forecast period. Of the anticipated 227.4 million addi38 |

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tional passengers, 195 million will fly domestically and 32.4 million on international routes, it added.

The airlines surveyed expect the Asia-Pacific region (including China) to add around 300 million additional passengers by the end of the current forecast horizon.

Domestic passengers will account for 75 per cent of the total, according to the study.

Expected to carry 677.8 million domestic passengers in

Germany will add 27.2 million passengers to the 149.4 million that flew into and out of the country in 2012 (3.4 per cent CAGR), while the U.S. adds 28.2 million international passengers, rising from 149.3 million in 2012 to 177.5 million (3.5 per cent CAGR) in 2017.

The fact that the Asia-Pacific region - led by China - and the Middle East will deliver the strongest growth over the forecast period is not surprising,”

2017, U.S. airlines will continue to comprise the largest single market for domestic passengers, although it will add only 70 million passengers over the forecast period (2.2% CAGR), said the report. The U.S. also will reclaim the top spot from Germany for international passengers by the end of the forecast period, it added. The study indicates that

said IATA director general and CEO Tony Tyler. “Governments in both areas recognize the value of the connectivity provided by aviation to drive global trade and development. Similar opportunities exist for developing regions in Africa and Latin America. To reap the benefit, governments in those regions will need to change their view of aviation from a

The report indicates that the emerging economies of the Middle East and Asia-Pacific will see the strongest international passenger growth, experiencing a CAGR of 6.3% and 5.7%, respectively, followed by Africa and Latin America at 5.3 and 4.5 per cent

luxury cash cow to a utilitarian powerful draft horse to pull the economy forward.”

At the same time, IATA forecast shows improved outlook for air cargo. A new forecast shows that international freight volumes will expand at a compound annual growth rate of 4.1 per cent over the next five years, suggesting a reasonably abrupt reversal of bad fortunes for a segment whose growth rate has averaged 0.63 per cent a year since 2011. Emerging economies, particularly in the Middle East and Africa, will be the fastest growing markets, according to the report.

IATA predicts that the U.S., China and the United Arab Emirates will each add more than 1 million metric tons of freight by 2018. By that time, according to the forecast, the UAE will have replaced Germany as the third largest market. Routes between the Middle East and Asia will grow the fastest among all international markets, at 6.2 per cent a year, followed by markets within the Middle East (4.6 per cent), from North America to South America (3.9 per cent) and Europe to Southern Africa (3.8 per cent). ■

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BUSINESS DIALOGUE

WORLD NEWS

POPULATION “French, Italian, German, and Austrian leaders see the refugees as a great opportunity to compensate for Europe’s population decline. As a father, I reject the idea of addressing the population decline with men who look like warriors.” — VIKTOR ORBÁN, Hungarian Prime Minister GERMANY

U.S.

Dell Bought Data Storage Company EMC for $67bln

Computing giant Dell has acquired data storage behemoth EMC to create what it calls the “world’s largest privately-controlled, integrated technology

company” in a deal worth $67 billion. The confirmation comes at mid-October after rumors first emerged of a possible buy-out, and the deal represents the biggest tech-only acquisition of all time.

“The combination of Dell and EMC creates an enterprise solutions powerhouse bringing our customers industry leading innovation across their entire technology environment,” Michael Dell, founder, chairman, and CEO of Dell, said in a statement.

Deutsche Bank Shakes Up Management Recently named Deutsche Bank CEO John Cryan is shaking things up at the investment bank. Cryan cleaned house by removing executives close to former CEO Anshu Jain. Among

U.S.

Amazon to Hire 100,000 For Holiday Rush Amazon announced its plans to hire 100,000 people in the United States for the upcoming holiday season. The online retail giant said this was on top of the hiring of 25,000 full-time workers since August.

Amazon said it employs 90,000 people full-time at its more than 50 customer service facilities and 20 package distribution centers. But it also tends to hire many people for the year-end holiday rush.

Last year, for instance, it took on 80,000 people for the Christmas holidays. Amazon has been criticized over working conditions, particularly at its call centers that take customer orders. The company insists it pays competitive wages and offers benefits such as health care and company contributions towards retirement plans.

JOHN CRYAN, CEO, DEUTSCHE BANK

those relieved of their duties were securities co-chief Colin Fan and asset management head Michele Faissola. Additionally, Cryan has decided to merge Deutsche Bank's corporate finance and global transactions units on the way to reducing the number of management committees to 10 from 16.

10 THINGS

EVERY BUSINESS OWNER SHOULD KNOW

CHINA

Robot Sales Set to Triple by 2018 Sales of robots in China are set to almost triple by 2018, defying a slowdown in the wider economy, the International Federation of Robotics reported. .

China is trying to modernize its industrial production and has identified robotics as a major area for growth amid labor shortages and fast rising wages.

The world’s second-largest economy still has far lower robot penetration than other big industrialized economies — just 36 per 10,000 manufacturing workers versus 478 in South Korea, 315 in Japan, 292 in Germany and 164 in the United States.

China’s robot market is still dominated by foreign players like ABB, Kuka and Yaskawa but China is encouraging its own robot makers with subsidies and the number of Chinese robotics firms is growing fast.

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Whether you will be starting your first small business, have already started one or will be working on your business there are things that you should know and DO to be the most successful. Here are 10 tips that may help you.

1. Always remember: Cash is king.

2. Cash may be king, but it's not everything.

3. Character is key when hiring new employees.

4. To grow, you must first learn to delegate and to trust.

5. Products 6. Competition 7. Marketing 8. Funding 9. Measurement 10. Make a plan before you start for your exit

REFUGEES

DID YOU KNOW The average smartphone user checks Facebook 14 times a day.

“Dealing with the high numbers of refugees is the federal government’s top priority. We want to, and we must, tackle this major challenge right now.” — WOLFGANG SCHÄUBLE, German Finance Minister

NETHERLANDS

FRANCE

World’s Biggest Sea Lock Funding has been completed to build what is being billed as the world’s biggest sea lock complex at IJmuiden. The current system, used by ships heading up the North Sea canal to Amsterdam, dates from 1929 and the new lock will allow bigger freight and cruise ships to reach the Dutch capital. The new lock will be 70 metres wide, 500 metres long and 18 metres deep and should be completed by 2019.

The contract for the construction and maintenance is valued at around €848 million. The tender process

Air France to Cut 1,000 Voluntary Job in 2016

was won in July by a consortium made up of BAMPGGM, VolkerWessels and investment group DIF. The European Investment Bank has also lent money to the project.

Air France would slash about 1,000 posts next year as part of a restructuring plan that triggered violent protests and scuffles, Alexandre de Juniac, the chief executive of parent company Air France-KLM announced.

ITALY

Piaggio Sets up Think Tank to Study Mobility Solutions MICHEL COMBES (LEFT), CEO AT ALCATEL-LUCENT AND RAJEEV SURI, NOKIA PRESIDENT & CEO

FINLAND

Nokia Gets China’s Clearance for Acquisition of Alcatel-Lucent Nokia announced that it received antitrust clearance from the Chinese Ministry of Commerce for its proposed acquisition of Alcatel-Lucent. The clearance in China completes the material antitrust review process required for the transaction, said a press release. Nokia and Alcatel-Lucent will continue to cooperate with the French government to obtain formal approval from the Ministry of Economy, after which Nokia will proceed with the filing of the previously announced public exchange offer for AlcatelLucent securities.

“Through Nokia Shanghai Bell, we look forward to maintaining our deep commitment to China and playing a key role in the country's shift towards an innovation-driven economy," said Rajeev Suri, President and CEO of Nokia Corporation.

As part of its acquisition of AlcatelLucent, valued at €15.6 billion, Nokia intends to create a joint venture in China with China Huaxin Post & Telecommunication Economy Development Center to combine Nokia's telecommunications infrastructure businesses in China with Alcatel-Lucent Shanghai Bell.

Italian scooter maker Piaggio, maker of the iconic Vespa, has established a new company called Piaggio Fast Forward (PFF) with the goal of becoming a think tank to study new mobility platforms and to respond to the challenges posed by the rapid changes taking place. The new company is based in Cambridge, Massachusetts, and among the board members are digital age experts and representatives of the high-tech world coming from companies such as Google and Trimble. The project, which was born on Piaggio's 130th anniversary, responds to the need to compete in the continuous development and the growing complexity of large urban areas which are destined to become megacities with tens of millions of inhabitants.

ALEXANDRE DE JUNIAC, CEO AT AIR FRANCE-KLM

De Juniac announced "measure of voluntary departure are expected for less than one third of the total (2,900 job cuts planned over 2016-2017)".

After failing to convince pilots to work more for the same wage, under new productivity measures, Air France unveiled its "Plan B" based on massive lay-offs and reduced flights to trim losses and boost productivity.

In addition, it wants to reduce the longhaul business by 10 percent over the period with a major focus on low-profits destinations mainly Asia and Middle East.

JAPAN

Quest to Discover Japan’s Top Entrepreneurs Toshiyuki Shiga (62) is on a $10 billion quest to discover Japan’s top entrepreneurs, people who can found companies as globally competitive as Tesla Motors Co. and Apple Inc. The former chief operating officer of Nissan Motor Co. described the search as an urgent mission for Innovation Network Corp. of Japan, the state-backed investment fund he took over as chairman in June.

TOSHIYUKI SHIGA Shiga was brought in to lead INCJ after Prime Minister Shinzo Abe visited California’s Silicon Valley, where he met Elon Musk and Twitter Inc. co-founder Jack Dorsey. The fund already has dozens of investments from entertainment startups to airlines, Internet companies and water utilities and has been shifting its focus to small manufacturers working on robotics and technology for emerging industries such as driverless cars.

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