CONTENT A word from the President
4
AMONG THE TOP TEN IN SERBIA
A wrod from the General Manager
6
WE WERE NOT SURPRISED BY THE SUCCESS
About the Company
9
METALAC SHARES SHOW THE HIGHEST PERFORMANCE STATISTICALLY
Serbia has not missed anything
24
THE MOST SUCCESSFULL YEAR FOR METALAC
Production companies
28
Trading companies
44
RECORD YEAR OF EXPORTS
GROWTH GENERATED CONTRARY TO THE GENERAL TREND OF SALES
Social responsаbility
60
CREATES HEALTHY COMPANIES
Human resources the greatest power of Metalac
68
EDUCATION AT ALL LEVELS
The future is happening as we speak
78
METALAC AN EXAMPLE ОF GOOD PRACTISE
Sports
80
PROMOTION OF SPORTS AND THE CITY OF GORNJI MILANOVAC
Awards and recognitions
84
VIRTUE LAUREATE AWARD
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DRAGOLJUB VUKADINOVIC President of the Metalac Group
VIRTUE LAUREATE AWARD TO THE
PRESIDENT OF THE METALAC GROUP
Award for outstanding contribution to preservation of the Serbian economy in a socially accountable and morally credible way.
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Mokra Gora School of Management Council has awarded the Virtue Laureate 2012 award to Mr. Dragoljub Vukadinovic, president of the Metalac Group, for outstanding contribution to the preservation of the Serbian economy. In the presence of 200 Serbian business and public persons, the award was presented by Slobodan Petrovic, managing director of Danube Food Group and the Virtue Laureate 2011. Explaining the decision to give award to Vukadinovic, the jоurnalist of Politika daily Aleksandar Apostolovski pointed out that in 1989 Vukadinovic became managing director of Metalac which was maybe the last oasis of workmen „shareholdership“ in Serbia. In his opinion Serbia would be much welthier if there were more businessmen and visionaries of such kind. - Mediocracy leads nowhere, only exceptional labor is a guarantee for success – said Vukadinovic with a message to young businessmen that the best solutions are most probable to come up in times of worst crisis. For three years Mokra Gora School of Management has been awarding a virtue laureate together with the partners: the Economics Institute, Faculty of organizational Sciences, Serbian Chamber of Commerce, Belgrade Chamber of Commerce, Serbian Business Club „Privrednik“ and Serbian Association of Corporate Directors.
10
AMONG TOP
IN SERBIA
Today the Metalac Group is one of the best 10 companies in Serbia that employ over 1000 people. The shareholders, the employees and the managment must be proud of the reputation we enjoy, but we are also worried to have only few sound companies in our country that could keep up with us. One could ask why worry about not having more of them? We can find the answer in the poetry of Petar Petrovic Njegos who in »The Mountain Wreath« metaphoricaly says: » I'am a lone straw tossing in the whirlwind, a sad orphan without friend or kinfolk“. The future of our company is in other words tightly connected to a successful industry and better living standard of the citizens as our consumers. I can see Metalac as a prosperous company in next 7-8 years at least. I believe in our strenght always to confront changes, to be one step ahead of the others, with the accent on constant investing into knowledge, new programs and products and up-to date process engineering. I will however repeat the many-time-repeated and globally proved fact that the critical or break point in the life of a cookware factory is the moment when the salary average gets over 700 euro. At that point all cookware factories in Europe were getting into difficulties because of high and insupportable share of work costs in the cost of the production. That moment is not too far away, probably in the next 10 years, and this issue has to be considered by the management constantly. Not to be onesided I would like to point out the results of the Group in 2012 which are absolutely the best in the 53-year history. We will make effort to do it again in 2013 and welcome the two fives anniversary – 55 years of Metalac with best ever results. So we are successful and proud of the results we obtain, but very well aware that we have to do more to survive and develop on a long-term basis, and space for progress is always there.
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PETRASIN JAKOVLJEVIC General manager
Once again we showed with our own work that living and being successful is possible. How fortunate Metalac is with its rooted system of values which for many years have governed its destiny, and that of the community in a way. In our Company the integrated economic, social and ecology objectives are comprehensive to each and every employee: do the good planning, work diligently and behave in the way to make us all proud.
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WE WERE NO SURPRISED BY
HE
SUCCESS
How do you explain such great results against all odds?
Our financial results are beyond expectations, however we are not surprised by the common consistency, discipline and faith in success that are so characteristic for us. In Metalac nothing happens by chance. Decisively the exports helped such good results, such strategy was not only of this year, but the result of a continuous work to penetrate new markets and win bigger share on the markets we entered time ago. The consequent result is 20% increase of exports as a dominant factor of 10% increase in overall sales of the Metalac Group, and of the profit level we had in 2007 before the crisis has started.
It sounds incredible, but the world economic crisis seems to have pushed Metalac forward?
This is another proved view that Metalac has kept - hard times are the best for big and good decisions. In 2009 with initial economic crisis we had a dawn fall, but we recovered very quickly and from 2010 we have been constantly growing. In fact, with exception of 2009, we have been growing since the year 2000. Another and not less important factor are the people - Metalac workers, their trust, loyalty and willingness to work. I mean all the workers, not only bare professionals. And this is not accidental. Metalac takes care of the employees. We are not ready to give up on them with any crisis we encounter. On the contrary, we keep them all - in good and in evil, however under clear rules that finally bring success to the company and security to the employees, and there are 1.700 of them. Moreover, salaries were increased 16-17% in total and they have been paid out punctually at 10 o'clock every 20th in a month for 20 years now.
Metalac has been traditionally focused on exports and that brings success. Are you satisfied with the sales in the local market?
Our strategy is favoring exports as to increase income constantly: In 2012 share of exports were about 70% in the total income. Russia is still growing, we are seriously developing our business in Ukraine, we are pleased by cooperation with our partners in Finland, after 6 years we are back on English market..., not to mention our traditional presence in Germany, Spain, Italy. Such approach should result in 5% growth in 2013. Our maximum attention will be given to the local market, but we will try even more to increase the sales in the markets where we are traditionally present and to search for new ones.
In 2012 despite the crisis Metalac Jsc. again managed to invest into new equipment, and also into socially acceptable projects.
Investments are imperative for sustainable development. True, during the years of crisis we invested somewhat more into projects that make part of our social responsibility, very aware that society is in deep crisis. Our support to sports, birth rate, young human resources, investment into ecology and similar is only expression of our deepest beliefs that successful ones have to see further and do more, that the lifestyle can't be an excuse for any selfishness. Therefore our biggest investment in 2012 was the modern football stadium constructed in Gornji Milanovac, and we also continued helping almost all sport clubs in the town that gather children and young population, as well as giving greeting cheques from 500 to 4.000 euros to each employee who gets a baby in the family. On the other hand, we invested into new lines and equipment for production of cookware, packing materials and water heaters. Our total investments during 2012 amount to 5 million euro. Moreover, we employed 150 young people meaning that other 150 new families got a basic security.
What changes need to be made in Serbia to help recover the industry and increase production?
It is about time we change our way of thinking and accept the fact that we can live only from our work. The government should promote that attitude. We can't build the future upon any outside help, or upon loans, if we don't create new value. The whole nation should be mobilized with this new awareness and different quality of values. For many years Metalac has been an example how workable that can be.
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THE COMPANY Metalac Group is a share company organized as a holding with 14 subsidiaries. Four of them are productive, five trading companies in the local market and five companies abroad. Metalac has been active for 54 years. The Company's head office is in Gornji Milanovac as well as all the factories of the group: Metalac Posudje Ltd. for production of cookware, Metalac Inko Ltd. for production of stainless steel and composite kitchen sinks and Granmatrix composite plates, Metalac Bojler Ltd. for production of water heaters and Metalac Print Ltd. for production of carton packing material and transfers for cookware decoration. The trading companies on the local market are: Metalac Market Ltd. as a retailer manages 46 specialized shops throughout Serbia, Metalac Metalurgija Jsc. Novi Sad which places products of Metalac and widest range of household items on the market of Vojvodina and manages 17 specialized shops in Voivodina, Metalac Trade Ltd. is a major wholesaler of imported household items, and Metalac Proleter Jsc. is a major supplier in the province of Gornji Milanovac through 40 points of sale. The company Metpor Ltd. Belgrade acts as an agent of different foreign companies. All five companies abroad deal with various ranges of Metalac products. The biggest share is from Metrot Ltd. Moscow which operates in Russia for eleven years. The youngest company Metalac Ukraine was founded in 2011. The market of the USA is supplied by Metalac Group USA located in Milwaukee. Promo-Metal Zagreb covers the market of Croatia. In Montenegro products are sold through Metalac Market Podgorica. Metalac Group shares are quoted on the B List of the Belgrade Exchange. Exchange analysts say that Metalac is one of the “healthiest” Serbian companies. In 2012 according to the consolidate account Metalac made almost 59 million euros turnover and net profit of 5,2 million euros. Cookware production is core-business and the company Metalac Posudje is one of the major cookware producers in Europe. Metalac exports its products to 25 countries in all the continents. Except traditional presence in Bosnia and Herzegovina, Croatia, Montenegro, Slovenia and Macedonia, about 5 million product units, mostly cookware, go from Metalac to Russia, France, Italy, Germany, Spain, Sweden, Finland, Denmark, Czech Republic, Ukraine, Georgia, Bulgaria... and as far as USA and Australia. Metalac Group employs about 1700 people, almost half of them working in Metalac Posudje as the oldest factory. Every tenth employee is with a university degree. There is a trend of continuous education to improve and update knowledge in all fields. Metalac Jsc. has integrated Quality Management System ISO 9001 and Environemental Protection Management System ISO 14001 certified by TÜV. The company is dedicated to all aspects of sustainable development.
Metalac has received numerous important recognitions such as: Golden Plate for Corporate and Social Responsability for 2009 from the Club of Business Reporters of Serbia; CSR Serbia Award 2008 – National award for socially accountable behaviour for 2008; Oscar for Quality 2007 for business excellence; Award of the Serbian Chamber of Commerce for contribution to the progress of the Serbian industry in 2006; The Best Serbian Trade Marks in 2004, 2005 and 2006.
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METALAC GROUP PRESIDENT METALAC PROLETER Jsc.
METALAC Jsc.
METALAC METALURGIJA Jsc.
ASSEMBLY
ASSEMBLY
ASSEMBLY
Board of Directors
MONITORING BOARD
Managing Director
Managing Director
President
Audit Commission
Board of Directors
Secretary
Executive Board Managing Director
General Affairs
GENERAL AFFAIRS
Internal Audit Office Marketing Section Development, Organization And Qms/Ems Section It Section Accounting, Finance And Tax Section Human Resources And Legal Section Safety And Prevention Engineering Section Logistics Section Restaurant Services
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SUBSIDIARIES
METALAC POSUĐЕ Ltd. METALAC INKO Ltd. METALAC PRINT Ltd. METALAC BOJLER Ltd. METALAC TRADE Ltd. METALAC MARKET Ltd. METPOR Ltd. METROT Ltd. PROMO METAL Ltd. METALAC MARKET PODGORICA Ltd. METALAC GROUP USA inc. METALAC UKRAJINA Ltd.
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VUKADINOVIC
LEADING THE COMPANY IN THE NEXT 4 YEARS
Dual management system carried out through executive and monitoring board. New members of the monitoring board MSc. Danko Djunic and Goran Petkovic PhD. Petrasin Jakovljevic Managing Director of Metalac Jsc. Executive board consisting of 5 members.
At the end of May Metalac Jsc. held the regular meeting of shareholders in which occasion the Constitutional Act of the Company, the Statute and the Company management system were amended according to the new elected law on enterprises. Metalac Group introduced a dual system of the company management with the Monitoring Board and the Executive Board as management bodies. As members of the Monitoring Board were elected: Dragoljub Vukadinovic president of the company Metalac Jsc.; Dragan Djuricin, PhD, professor at the Belgrade Faculty of Economics; Goran Pitic, PhD, president of the management Board of the Societe Generale Banka Srbija in Belgrade; Ljubinka Rajakovic, PhD, professor at the Belgrade Faculty of Technology and Metallurgy; Rajko Tepavac, PhD, member of the Executive Board of the company Dunav osiguranje Jsc. in Belgrade; Mr.Danko Djunic, president of Eki investment Ltd., Belgrade; Goran Petkovic, PhD, professor at the Belgrade Faculty of Economics. The Monitoring Board and Dragoljub Vukadinovic as the president of the Monitoring Board were elected for a four-year period. As members of the Executive Board elected were Petrasin Jakovljevic, executive director for development, organization and QMS/EMS; Radmila Todosijevic, executive director for financial affairs, human resources and business logistics; Aleksandar Markovic, executive director for production and IT; Stojan Slovic, executive director for domestic sales and marketing; Goran Mijatovic, executive director for exports and foreign subsidiaries. The members of the Executive Board were elected for a four-year period, and Petrasin Jakovljevic was elected the managing director of the Company. The former members of the Management Board Nikola Pavicic, honorary president of the Tarkett for Eastern Europe; Vladimir Cupic, president of the executive board of Hypo-Alpe-Adria Bank and MSc Djordje Milosavljevic, consultant at the Centre for Process Engineering of the IHTM Company, were shown utmost gratitude for their knowledge, experience and reputation which they contributed to Metalac in the past.
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MONITORING BOARD Dragoljub Vukadinovic, President of the company and Chairman of the Board Dragan Djuricin, PhD Professor at the Belgrade Faculty of Economics and Vice president of the Board Goran Pitic, PhD Chairman of the Board of executives of Societe Generale Bank - Serbia Rajko Tepavac, PhD Member of the Board of executives of Dunav Osiguranje Jsc. - Belgrade Ljubinka Rajakovic, , PhD Professor at the Belgrade Faculty of Technology and Metallurgy Mr Danko Djunic, President Eki - investment Belgrade Goran Petkovic, PhD Professor at the Belgrade Faculty of Economics
EXECUTIVE BOARD Aleksandar Markovic, Executive director for production and IT
Petrasin Jakovljevic, General menager and executive director for development, organization and QMS/EMS
Radmila Todosijevic, Executive director for finacial affairs, human resources and business logistics
Stojan Slovic, Executive director for domestic sales and marketing
Goran Mijatovic, Executive director for export and foreign affiliates
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STATISTICAL OVERVIEW OF
OWNERSHIP STRUCTURE
on December 31st 2012
Issuer: METALAC AD GORNJI MILANOVAC - 07177984
Share capital
Active ISIN (CFI): RSMETAE71629 (ESVUFR)
Type of Number of shareholders shares Shares in ownership of individuals 591,950 Shares in ownership of legal entities
% of total issue
7.23304
0
0.00000
354,273 Nominee or custodial account 0 Consortium Total: 1,020,000
34.73265
Percentage of ownership in capital of shareholders
od 0% do 5% od 5% do 10% od 10% do 25% od 25% do 33% od 33% do 50% od 50% do 66% od 66% do 75% od 75% do 100% Total:
58.03431% 7.23304% 34.73265%
58.03431
73,777
Socially owned capital
Shares in ownership of natural persons Shares in ownership of legal entities Nominee or custodial accounts
0.00000 100
Number of shareholders
Number of shares
domestic foreign
domestic foreign
domestic
foreign
578306 267407 174607 0 0 0 0 0
56.69667 26.21637 14.47127 0 0 0 0 0
261569 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000
1359 4 1 0 0 0 0 0
58 0 0 0 0 0 0 0 1.422
26680 0 0 0 0 0 0 0
% of total issue
1.020.000
100,00000
INVESTOR RELATIONS AWARD For the third time in a row at the 11th International conference of the Belgrade Stock Exchange the prize was awarded to a company that achieved the best results in investor relations in the current year according to a survey by the Investor Rrelations Commission and the poll on the website of the Belgrade Stock Exchange. Special Award for the high quality of relationships with investors in previous years, this year was presented to Metalac Jsc. As in the last year, this years winner is Naftna industrija Srbije (NIS) whose reporting in the field of investor relations respects the highest international standards.
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2012
14
”METALAC“ SHARES SHOW THE HIGHEST PERFORMANCE STATISTICALLY
On March 13th 2013 the shares of the company Metalac Jsc. had the highest price of 2.250 RSD per share in last 18 months. The last time Metalac shares had higher price was in August 2011, and their peak of 6.505 RSD per share was in April 2007.
From the beginning of this year the shares of Metalac Jsc. rose for almost 30% and therefore show the highest performance in the Belex 15 index basket. At the last price of 2.244 RSD per share the market capitalization of this company amounts to 2,29 billion RSD (20,4 million euros).
MTLC - Metalac Jsc., Gornji Milanovac - 02.04.2012. do 29.03.2013.
PROTECTION OF MINOR SHAREHOLDERS GOOD CORPORATE STORY Despite European legislation, researches in Serbia show rather poor legal protection of local shareholders. Metalac is one of the few companies that represents the opposite – positive example, as experts estimate. Due to divergence between „the right on the paper“ and actual rights, the shareholders property and rights are effectively unprotected. In the Global Competitiveness Report 2011-2012 published by the World Economic Forum, of 142 countries Serbia was rated 140. Experts claim there are only few companies that do not violate rights of minor shareholders, and these are Metalac Jsc. from Gornji Milanovac, Galenika Fitofarmacija, Jedinstvo Sevojno, NIS ... In these companies either employees and managers hold important ownership share, or a majority shareholder wants to create a good corporate story. The shareholders of these companies know exactly how the business is doing, they have control over it and could affect upon it, pay out dividends and make profit. This not only proves that minority shareholders’ rights are protected, but also shows the strenght of a company as shareholders have their yield regardless of the share price oscillations on the exchange.
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To have reputation of being among the healthiest Serbian companies for years is probably the biggest compliment that Metalac could get. Even more significant if you know how hard the times in which this reputation was obtained have been, and how much Metalac has grown in every aspect all along.
For 18 years the Metalac financial statements have been made in all relevant aspects according to the Serbian national accounting regulations by auditors' opinion. During all that time all the success measuring parameters have been continuously growing. In its operations the Company has been in different grades exposed to financial, market, credit and solvency risks. The risk management was instructed to minimize potential negative impact to financial conditions and operations in the environment of an unpredictable financial market. The Company also managed well the capital risk and succeeded in keeping its business successful in a foreseeable future. The capital management was aimed to keep the optimum structure and therefore cut the costs of the capital and provide dividends for the shareholders.
RADMILA TODOSIJEVIC
Executive director for finacial affairs, human resources and business logistics
These are also the reasons why we are known as a company which business is managed like a household. The reputation of being one of the healthiest Serbian companies for years is probably the biggest compliment that Metalac could get. Even more significant if you know how hard the times in which this reputation was obtained have been, and how much Metalac has grown in every aspect all along. Again in 2012 the factors like: planning, discipline, responsibility, coordinated management of income and cost movements, management of currency risks, interest rate changes risks, solvency risks, credit risks and capital risks, were decisive. So I have to emphasize that financial health of any serious company and therefore of Metalac arrises from its overall sound reasoning and business functional organization.
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Operations in 2012. Turnover INCREASE 10% Export INCREASE 20% Profit INCREASE 18% Number of employees INCREASE 9% INCREASED number of newborns 30% Investments 5.000.000 euros Stadium FC Metalac has been completed Share cost INCREASE 30% (first quarter 2013) Dividends paid to the shareholders, and premiums to the employees
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nji Milanovac ncial statements of Metalac Jsc., Gor In our opinion, the consolidated fina al respects, in 2 have been prepared, in all materi for the year ended December 31, 201 ulations of the Republic of Serbia. accordance with the accounting reg
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CONSOLIDATED BALANCE SHEET As at December 31, 2012 (Thousand of RSD)
ASSETS
2012.
2011.
Non-current assets Intangible assets Property, plant and equipment Investment property Long term financial placements
18 18 18 19
22,718 1,880,635 387,793 25,172
13,509 1,926,820 95,864 40,412
2,316,318
2,076,605
1,826,117 1,336,473 58, 709 327,227 694,115 54,495
1,501,237 1,220,177 32,757 299,539 697,034 47,123 3,797,867
Current assets Inventories Accounts receivable Receivables for prepaid income tax Short-term financial placements Cash and cash equivalents Value added tax and prepayments
20 21 22 23
4,297,136 6,613,454
TOTAL ASSETS
2012
EQUITY AND LIABILITIES
5,874,472
2011
Capital and reserves Share capital Other capital Share premium Reserves Unrealized gains on securities Translation reserves Retained earnings Majority interests Minority interests
408,000 33,899 4,256 90,623 0 4,052 3,379,148 3,919,978 107,793
408,000 33,899 4,256 90,623 1,370 2,250 3,057,220 3,597,618 108,863
4,027,771
3,706,481
26 27 28
176,402 591,481 0 767,883
145,972 112,875 5,112 263,959
29 30 31
663,227 772,709 237,401
971,756 602,026 207,457
89,272 1,869 1,764,478
83,095 2,070 1,866,404
53,322
37,628
6,613,454
5,874,472
102,023
173,628
25 25 25
Long-term liabilities and provisions Long-term provisions Long-term borrowings Other long-term liabilities
Current liabilities Short-term financial liabilities Accounts payable Other current liabilities Value added tax and other duties payable and accruals Income tax payable Deferred tax liabilities
17 TOTAL EQUITY AND LIABILITIES Off-balance-sheet items
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20
32
CONSOLIDATED INCOME STATEMENT Year ended December 31, 2012 (Thousands of RSD)
OPERATING INCOME Sales revenues Own-work capitalized (Decrease)/Increase in inventories Other operating income
5 7
2012.
2011.
6,067,469 24,775 72,975 160,783
4,971,564 14,042 58,948 122,423
6,326,002
5,166,977
(1,724,761) (1,725,607) (1,319,656) (235,557) (565,694)
(1,412,500) (1,464,217) (1,074,801) (200,318) (434,242)
(5,571,275)
(4,586,078)
754,727
580,899
274,232 (218,552) 44,136 (208,880)
181,616 (174,234) 67,805 (132,547)
(109,064)
(57,360)
645,663
523,539
(44,492) (15,708) (60,200)
(26,719) 5,022 (21,697)
585,463
501,842
581,705 3,758 585,463
505,250 (3,408) 501,842
570.29
495.34
OPERATING EXPENSES Cost of goods sold Materials, fuel and energy Staff costs Depreciation, amortization and provisions Other operating expenses
8 9 10 11
OPERATING PROFIT Finance income Finance expenses Other income Other expenses
12 13 14 15
PROFIT BEFORE TAX INCOME TAXES Current tax expense Deferred tax benefits
17
NET PROFIT
NET PROFIT/(LOSS) ATTRIBUTABLE TO: Equity holders of the parent company Minority shareholders
16
Basic/diluted earnings per share (in RSD)
These consolidated financial statements were approved by the managment of Metalac Jsc. Gornji Milanovac and filed with the Serbian Business Registeres Agency on April 18, 2013. Signed on behalf of Metalac Jsc., Gornji Milanovac by:
Petrasin Jakovljevic,
Radmila Todosijevic,
General menager and executive director for development, organization and QMS/EMS
Executive director for finacial affairs, human resources and business logistics
Milan Đorđević, Head of Accounting
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2012
SERBIA
HAS NOT MISSED
ANYTHING
When 2012 becomes distant past it will be easier to understand the importance of another good year for Metalac that happened in such hard times.
Even the saying that »Everything is the same only children are growing« unfortunately seems not to be true any more
The very beginning of 2012 justified all the estimates and worries for the fourth year of the world economic crisis. Serbia hasn't missed anything: further fall of industrial production and buying power, unstable exchange rates, insolvency, ceased activity by numerous small traders, shortage of capital, uncertainty of trading, worse crediting conditions, unemployment, gray economy, preelection uncertainty, postelection waiting for a new government... On the top of all that five ice weeks in January and February as a force majeure significantly augmented the costs and made all the sales projections for the first quarter fail.
From 7,5 million in 2002 Serbia fell to 7,1 million inhabitants in 2012. Birthrate is going down, average life expectancy is going up, number of household members and number of rural population is falling and this is the population that has kept traditional values and habits including traditional food preparation. Moreover, almost 40% of population has aged over 50, while children aged under 9 make only 10% of the total population.
The world crisis is still going on, social movements in various countries of the European Union are more active, uncertainty and searching for the answer – how to exit the tunnel. Fortunately, those few things that bring optimism were depending only upon us: positive atmosphere in the company, determination and persistence of employees, careful management of costs, adjustments of sales policy, cautious dealing with small traders, faith in management and workers, new ideas, experience and business intuition, good teams of associates, clear vision, trust of partners and consumers. We carried on, but were aware that there were two sides of the medal – limiting factors and our advantages.
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22
Almost 45% households in Serbia are with 1-2 members. 10% of the population live under the limit of absolute poverty, meaning they do not have enough resources for food, while only 2,25 million people can provide for food and pay for housing costs, but barely anything more. The greatest problem is that the huge part of population is almost in the poverty zone. As poverty grows the researches show that optimism of people is falling. The employment is at historical minimum, only 1,7 million people are employed, and that is 250.000 employees less than five years ago, most of that were industrial workers. About 45% of average household income is spent for food, then housing, clothing, education, health... and only 4,5% of the average remains for all other expenses (from cups to locomotive, and therefore also cookware).
THE MOST
SUCCESSFULL YEAR FOR METALAC
One of the best years for the Metalac Group brought the total sales turnover of 86,1 million euros. Compared to 2011 the growth is 10%. The profit that the Metalac Group made amounted to 6,81 million euros, which was 18% more than in 2011. The biggest growth of 45% of the sales turnover, made the company Metrot in Russia, then Metalac Print with 33%, while between 10% and 20% growth made Metalac Posudje and Metalac Inko, and trading companies Metalac Market in Serbia, Metalac Market in Montenegro and Metalac Proleter. The factory of water heaters, Metalac Bojler, had 7% higher sales turnover, while Metalac Trade, Metalac Metalurgija and Promometal- Zagreb made more or less the same turnover as in 2011. As the youngest subsidiary, Metalac Ukraine made its first sales in the second half of 2011, so in 2012 its growth was as high as 325%. However, for the 2012 balance it is important to mention the growth of the biggest subsidiary and the core business of the group, Metalac Posudje; this company made 30% of the total sales turnover, 90% of the total exports and 50% of the total profit of the Metalac Group. On December 21st at the meeting held in Gornji Milanovac, the conclusion of the Monitoring Board of Metalac Group was that the year 2012 was very successful and it adopted the Business Plan for 2013 with projected growth of 5%.
2012 2011 90.000.000 80.000.000
M E TA L AC G RO U P 86.097.904 77.957.166
9.000.000 8.000.000
7.612.286
7.908.631
9.000.000 8.000.000
70.000.000
7.000.000
7.000.000
60.000.000
6.000.000
6.000.000
50.000.000
5.000.000
5.000.000
40.000.000 30.000.000 20.000.000 10.000.000 0
4.000.000 3.000.000 2.000.000 1.000.000 0
4.000.000 3.000.000 2.000.000 1.000.000 0
T O TA L I N C O M E
GROSS PROFIT
8.522.467 7.581.928
EBITDA
23
Đ•UR
MGM REPORT
2012
ALEKSANDAR MARKOVIC, Executive director for production and IT Our competitive advantage is in our ability to plan the production and produce goods with high quality, strictly respecting all the various requests of the clients, and within the agreed terms, however keeping the costs under control.
STOJAN SLOVIC, Executive director for domestic sales and marketing Regardless the general downfall of the Serbian industry in 2012 and important decrease in retailing, our companies made remarcable results and respectable growth on the local market.
GORAN MIJATOVIC, Executive director for exports and foreign affiliates In 2012 about 20 million euros or 32% of the total sales turnover from all the subsidiaries registered in Serbia was from exports. Should we exclude from this analysis the subsidiaries that operate only in the local market, the share of export is even as high as 60% of the sales turnover made.
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2012
24
The strength of Metalac comes from its ability to produce and therefore create a new value. Plus we are known to the clients throughout the world as a reliable manufacturer with standardized quality, ready to respond to very requiring demands and strictly respecting delivery terms at the same time. Since all the phases of the production process, from raw material input to the finished and packed product, are arranged within the Metalac system, the cost control is under control at most. This competence has to be constantly upgraded, so we initiated the projects for efficiency upgrade by the latest methodologies, and we will insist on that in the future. People say that the ability of a nation to survive on a long term basis is measured by the capability of its industry to make exports. Then we could say that Metalac Posudje business will sustain for long because in 2012 the export made almost 70% of the total sale. The last year however showed us that we have to be prepared for peaks in demand that could happen in a permanent crisis environment in the whole world. The main weapon for this battle in the market is educated people at all company levels, so our priority will still be to invest into education of our employees. With the innovation of the information system for better decision making process management on a speeding market, we have a chance to arrive first and offer innovative products and designs. And the added value comes hand in hand with that.
The production subsidiaries that rely upon the local market made significant sales turnover increase in 2012, so the company Metalac Bojler that made over 70% of the sale on the local market, had the total sales turnover growth of 7% (we could say the growth was almost equal on the local and export levels). The company Metalac Inko, with over 53% of sales made in the local market, had the total sales turnover growth of 15% (better on the local level than from export). Metalac Print, with extraordinary sales turnover growth of 33% and with almost 70% of sales made by doing business with the sister companies, showed also the potential to grow selling outside the group. Due to the expansion on the Russian market, as well as on the most export markets, Metalac Posudje somehow put aside local customers so there was a drop in sales on the local market that should not continue in 2013. The trading companies had good results despite the general problem of slower trading activities, so the 13% of sales turnover growth of Metalac Market means they are going in good direction. Metalac Trade evidenced a slight drop in sales in 2012 with respect to 2011, but a higher end result, things are therefore changing in the market and the changed way of operation in the local market gave results for this company. We stepped into 2013 with optimism and if the growth forecasts for the Serbian industry are achieved, we are sure that we are going to make good results that we will write about in the next year's edition of the report.
During the last year the subsidiaries abroad made the sales turnover of 13,9 million euros. For 2013 all of them are projected to grow, and the most ambitious figure of 20,5% is planned for the company in Ukraine. Dominant export item is cookware; the last year's total export of cookware amounted to 16,3 million euros, which is almost 70% of the total sales turnover figure of this subsidiary. Concerning further export plans, each new market is welcome, but the focus should be to fortify position on the markets we already penetrated and with all product lines of the Company. For two years now Croatian market has had a downward trend, so for the year 2013 we took steps in order to stop such trend. There is an opportunity for Metalac Inko with the further growth of sales in the Croatian market, but some notions are that the sinks could be marketed in Ukraine as well. With water heaters we are present on the surrounding markets (ex Yu) however each further attempt to win new markets gets us back to the problem of uncompetitive prices of the standard product lines.
25
MGM REPORT
2012
MGM REPORT
2012
26
PRODUCTION COMPANIES The four production companies within Metalac Jsc. produce different kinds of cookware, water heaters, stainless steel and granite sinks, Granmatrix composite materials, transport and gift packing materials. In 2011 Metalac production companies made sales turnover of 36,3 million euros which is 42% of the sales turnover of the Metalac Group. 50% of that was from exports that showed 20% higher mark than in 2011, while the local market showed 4% of growth. The biggest share in the sales turnover of the production companies i.e. 72% was from Metalac Posudje, core business of the company, and 90% was the share of cookware in the total exports.
27
MGM REPORT
2012
A RECORD
YEAR OF EXPORTS Occasionally even without enough goods for the local market due to overbooked capacities, the exports rised by 20% while the local market showed 10% of drop in sales. From the total of 22 markets, 11 had better turnover than last year, mostly Russia, then Germany, Italy, Spain, Slovenia, Bosnia & Herzegovina... Rather tense year, unpredictable efforts encountered in developing of a stainless steel cookware collection, equipment for aluminum cookware production moved to another plant, too much pressure upon capacities of the enamel cookware factory. With 26.164.000 euros Metalac Posudje continued its growth in 2012, this time 10% compared to the previous year, in major part influenced by 20% higher exports, while the local market had drop of sales of 10%. Both for the local and export sales the year was rather turbulent, in constant attempts to fulfill all the agreements including numerous promotional sales that in certain moments required more goods than actually available. Differently from past years, the big pressure was also upon the stainless steel and non-stick cookware factories.
Frequent loyalty campaigns found to be necessary
ALEKSANDAR MARKOVIC Managing Director - I don't know if the 2012 will be remembered by the problems we had to solve, or by the placement that we made, however it was a really turbulent year of day-to-day struggle to fulfill the terms and demand. In such unpredictable times, like past years of the world crisis, there is not much space for strict planning, but more flexibility is needed, and I think we succeeded in that, - said Aleksandar Markovic, director of Metalac Posudje.
MGM REPORT
2012
28
The practice of frequent promotional sales continued in 2012, more frequently in the last few years both locally and on the markets of ex Yugoslavian territories. In cooperation with the Merkur, Tempo, Idea and Eco fuel distributor four loyalty promotional campaigns in Serbia were organized, two of them prolonged to first four months of 2013. In Montenegro and Bosnia and Herzegovina the promotional campaigns were carried out through Tempo and Maxi chain of shops, while at the end of the year in Croatia through the Konzum points of sale began the loyalty campaign of the Mehrzer stainless steel cookware collection. For the first time in Bosnia and Herzegovina the retail chains Robot of Sarajevo and Bingo of Tuzla made three-day promotions called "Cookware Days". During the year several promotions of Metalac Posudje were arranged in the shops of the Metalac Market and Metalac Metalurgija. About ten smaller clients throughout Serbia had chance to make one-day promotion "Cookware Day" offering discount prices to their consumers.
Only to Russia 120 trailers dispatched Half of the sales turnover, being almost 70% of the total sales, Metalac Posudje made thanks to exports into 22 countries in 2012. Around 6.6 million euros of export was made in the Russian market where the Metalac affiliate, Metrot, made results almost as in the record year of 2007. Around 120 trailers were shipped out from Metalac Posudje to the Moscow warehouse, and carried about 800.000 cookware units, mostly enamel. Important increase in sales was evidenced in the markets of Germany, Italy, Spain, Ukraine, Bosnia and Herzegovina, Macedonia, Slovenia... Finland has kept the same level as in previous years. After a longer pause we are back to the English market. Since the increased demand of foreign clients was a priority with respect to the local market, we could say that for sure the local market would be doing better if there were sufficient goods at every time. Beside the drop in sales of almost 10% in 2012,it seems we had missed a chance to gain bigger share on the Serbian cookware market.
Founded Location: Activity : Market: 2012 sales turnover: Number of employees:
2006, as a subsidiary of Metalac Jsc. Gornji Milanovac, Serbia production of enamel cookware since 1960 production of non-stick cookware since 1994 production of stainless steel cookware since 1999 Serbia and 22 countries around the world 26,20 million euros 788
Satisfaction of consumers measured for 12th time For 12 years Metalac Posudje has been measuring how satisfied the buyers and consumers have been in the local and foreign markets. In 2012 the local consumer was 2% less satisfied than in 2011. The greatest impact was of the parameters "change in sales volume" and "number of buyers kept", as a number of buyers that were lost due to ceased activity, or changed activity, or inability of liability financing. On the other hand the pools: Sales volume in clients change and researches of buyers' and consumers' satisfaction showed slightly better figures. The situation is quite opposite if we look how pleased were the clients and consumers in the foreign markets, as the vote rose in 2% compared to 2011. The parameter "sales volume change" had major impact to it.
Frankfurt Ehxibition is a Must! Appearance at the Frankfurt Fair in February 2012 was a real pleasure for Metalac Posudje and for numerous potential partners. Series of new decorations pointed out our innovative authorship approach and therefore our reputation. Beside the designers from Metalac, after a longer time, a very interesting line of cookware was presented thanks to the cooperation with a local artist, Slobodan Jelisijevic, professor at the Nis Faculty of Applied Arts. The same exhibition was presented in Chicago. However US market still requires effort and patience.
29
MGM REPORT
2012
DYNAMICAL YEAR IN
ALL THREE
COOKWARE FACTORIES The equipment for production of aluminum cookware moved to a new hall; production of cookware with ceramic coating has started; all plants upgraded with new equipment. Due to increased production volume 76 new workers were employed.
Metalac posudje is a unique factory since it produces enamel on steel, stainless steel and aluminum cookware with various non-stick coatings in its plants. In 2012 the production per piece increased by 9% with respect to the previous year. Due to the increased production volume 76 new workers were temporarily employed and 38 from youth organization. Our biggest subsidiary therefore expanded to 800 employees for indefinite period, which is almost half of the people in the whole Metalac Group.
New lines developed in stainless steel and aluminum with non-stick coating
Technological improvement
Within the aluminum cookware there are three new collections with ceramic non-stick coating: Eco tava Ceramics as a standard offer, one for private label K-home in Croatia and one for the loyalty promotional program with IDEA chain of shops in Serbia.
Among several investments we would like to single out new press for bakelite and setting-up a new plant for production of aluminum cookware on 1800 sq. m. where the production started in September. The new automatic line was bought for production of aluminum cookware from discs with the capacity of 300-600 peaces/h. The line makes part of the total investment for modernization of the plant for non-stick cookware of about 500.000 euros. Metalac is now equipped for production of all kinds of aluminum cookware, except cast aluminum, and the capacities are multiplied. Worth mentioning are the electrical forklift for the warehouse of semi-products and the packing section; machines for stretch wrapping of the pallets for the packing section and the warehouse of finished products, trimming machine for production of so called flat lids; two ex-centric presses of 250 tons; tools for the bakelite handle of the pancake pan with aluminum insert; tools for the bakelite handle designed by a student of the Faculty of Applied Arts; renewal of tools for the classic stew pan; tooling for the new Mehrzer stainless steel cookware line and for the new aluminum cookware line with ceramic coating.
MGM REPORT
2012
30
The factory of stainless steel cookware had a very delicate task to develop a new line with Mehrzer private label which was presented to the Croatian market at the end of the year. The capacities were engaged also for the new line Talia meant for the big loyalty promotional program with Tempo points of sale in Serbia and Maxi and Tempo in Montenegro.
The oldest factory, that of enamel cookware, mostly worked on further technological upgrade: better quality obtained of a double folded rim on the classic mugs and therefore full compliance to the requests of all customers. Moreover, with the new device for spot welding the stainless steel cookware rim is of higher quality now. The trials were made with the "Lithuanian" oven for decor firing and the obtained quality is now better with significantly less pieces that are wasted. In the section of mechanical processing some organizational improvements are made for material savings, equipment care and maintenance, safety at work, a thorough tide-up is done, generally good work example transferred also to other production sections. In 2012 Metalac Posudje has started dealing more seriously with the stock of waste materials which is located in Metalac.
COOKWARE WITH
After PTFE, silicon and RealEase coatings, Metalac Posudje has presented a new non-stick line with ceramic coating to the market and therefore fortified the position in the market filled with competitors. Due to the moving of the production into a new hall, there was a gap in supply during July and August. Seven items in the EcoTava Ceramics line of cookware were presented to the local and exYu markets. However the capacities were full mostly because of the promotion called "Idealno - Silver lux" with the IDEA chain of shops at the end of the year.
CERAMIC COATING
2012 2011
M E TA L AC P O S U Đ E
25.000.000
23.868.957
26.163.694
3.656.966
3.000.000 2.000.000
1.500.000 1.000.000
5.000.000
1.000.000
500.000 0
T O TA L I N C O M E 67%
2012
500.000
1.000.000
29% 1.500.000
2.000.000
2.500.000
0
GROSS PROFIT
33%
71%
2011
2.828.704
2012
2.476.355
2011
3.000.000
0
31%
Non current / current
EBITDA
44%
31%
24%
46%
500.000
1.000.000
ASSETS 2012 2011
3.773.710
2.000.000
10.000.000
0
4.000.000
2.443.897
2.500.000
15.000.000
0
2.734.861
3.000.000
30.000.000
1.500.000
2.828.704
23% 2.000.000
2.476.355
2.500.000
3.000.000
LIABILITIES Inventories
Equity
Financial liabilities
ЕUR
000 RSD Accounts payable
31
MGM REPORT
2012
Mini M - COOKWARE FOR CHILDREN WITH DISNEY CHARACTERS In October 2012 Metalac obtained the Disney licence, and first small pots with Minnie and Mickey Mouse decorations entered the market in March 2013.
MGM REPORT
2012
32
Although Metalac has always had the offer of cookware for children, but no sooner then in 2012 that this category became specially important. Beside the increase in sales, a very important marketing objective is positioning in the segment for kids and entering specialized sales channels where Metalac Posudje hasn't been present so far. Using all the advantages of enamel from the health point, functionality and aesthetics, a special collection of items for cooking, serving and preserving food for children is created under the brand name Mini M and the slogan "Grow up healthy".
COOKWARE OF THE SOCIAL NETWORKS The story that began in September 2011 has been more and more interesting and challenging trying to get close to the younger generations who use internet as priority communication media. After a year and a half the Facebook page of Metalac Posudje has almost 25.000 fans, 80% of that mostly young women and mothers. Based on accurate quarterly plans, during this period several dozens of application were made and there was a successful open competition for new decoration ideas. During 2012 the cookware factory had been visited few times by the famous cooking bloggers that created a new communication channel on the social networks. Entering a social network is rather useful as we can inspire young population of present and future consumers through a two-sense communication. As addition to that we got a compliment at the regional blogger conference that our brand is one of the strongest in Serbia by presence on the social networks and referred to us as "official and unofficial cookware of the internet society in Serbia".
Blue with dots are constant inspiration (judging by the photos from our fans).
INTELLECTUAL PROPERTY RIGHTS PROTECTION The moment we found the first plagiarism of our products in the market, Metalac had decided to protect its intellectual property rights as well as to elaborate all aspects of the process that in this context could be important for the future. Thorough and expensive investing into development and positioning of the brand could have many serious consequences with any plagiarism. Except taking over a part of the market in a non-loyal way, a collapse of the brand image is particularly risky. That is why Metalac has decided to take care of its intellectual property and protect it, especially when on the shelves of certain shops Metalac Posudje found plagiarism of its best selling decors.
In cooperation with the Serbian Institute for Intellectual Property necessary steps were made and a complete diagnostics of the intellectual property elaborated in two of the Metalac companies: Metalac Posudje and Metalac Bojler. During the procedure and elaboration of necessary documents, the employees of Metalac were instructed how to cooperate with customs officers authorized to prevent imports of goods which could violate the protected rights, as well as with inspection entities that are entitled to confiscate such goods if found in the market.
33
MGM REPORT
2012
METALAC BOJLER IN
ALL MARKETS OF EX YU TERRITORY
7% total sales growth. 22 new employees. Focus on development projects
The company Metalac Bojler continued its growth trend and made almost 4 million euros in 2012, which is 7% higher than in 2011. Growth percentage was similar in the local market and on exYU markets. With the share of the local market of about 70% the year was particularly successful in the Serbian market. The key to such increased sale was the model ECOnomic which was placed on the market to fight the competition in the lower price category. Besides, Metalac Bojler added 15 new clients to its portfolio and the sales to construction companies also increased. As for other markets, the sales in Bosnia went better, while the placement in Slovenia and Montenegro was stable. Exports to Macedonia were constant and for the first time the Metalac water heaters went to Croatia thanks to a deal with the »Mercator centar tehnike« that started the activity with 14 shops throughout Croatia in 2012.
GORAN MIJATOVIC Managing Director - It is important to us that 6 years after the company was founded we are present on all ex Yu markets and in Russia, although we are still not satisfied with the placement in the Russian market. Moreover, the important fact is that we are present with the Metalac brand name and persceived as a quality product, which opened space for our serious presence in coming years – briefly commented Goran Mijatović, director of Metalac Bojler.
MGM REPORT
2012
34
The managers of the company visited the Milan fair also this year and found out that trends haven't changed in last 2-3 years. The accent is on energetic efficiency and that is the direction of our strategy. As a result of all the activities there is a 4% higher satisfaction of consumers in the local market, while on the foreign markets this parameter fell by 1%. Thanks to increased sales 22 people were employed so there were 79 employees in Metalac Bojler as of December. While satisfied with accomplishment of the plan, director of Metalac Bojler is not pleased with progress of initiated development projects. Focus on sales in hard economic conditions left the initiated projects on hold, so this will be among main tasks in 2013, for which we planned 3,5% growth. Moreover, to improve the communication with the public and end users, Metalac Bojler started its own web presentation end 2012.
Founded: 2006 Location: Gornji Milanovac, Serbia Activity : Production of accumulation and small capacity water heaters Market: Serbia, ex Yugoslavian republics and Russia 2012 turnover: 3,98 million euro Number of employees: 79
2012 2011
M E TA L AC B O J L E R
4.000.000
3.984.456
3.733.373
204.660
200.000 150.000
30.000 20.000
1.000.000
11.917
100.000
10.000 0
T O TA L I N C O M E 71%
2012
50.000
100.000
30% 150.000
200.000
250.000
300.000
0
GROSS PROFIT
29%
70%
2011
330.704
2012
11%
308.519
2011
10%
350.000
0
Non current / current
EBITDA
36%
53%
34% 50.000
150.000
200.000
250.000
308.519 300.000
LIABILITIES Inventories
Equity
Financial liabilities
Đ•UR
330.704
56%
100.000
ASSETS 2012 2011
234.800
40.000
2.000.000
0
250.000
50.000
3.000.000
0
57.376
60.000
5.000.000
350.000 000 RSD
Accounts payable
35
MGM REPORT
2012
RETURN TO
DESIRED POSITIONS
With almost 2,1 million euros of sales turnover the growth of 15% was made. Important 2012 mission accomplished - abandoning principle of exclusive distributions and creating stable portfolio of clients, returning to old customers and winning new ones. Customers 13% more satisfied. Metalac Inko dedicated the 2012 to reposition its products primarly in the Serbian market. Long term relation with distributors became insustainable, especially with arrival of the crisis and lower consumption in this segment. Constant presence in the field, follow-up and communication with clients once more proved to be irreplaceable model for bigger chances and less risks, while partnerships are maintained. The year 2012 finished with 15% growth with respect to the year before. Results were better on the local market which had 53% share in the total sales. Outcome of this approach is 150 active clients, 60 of them new or reacquired in 2012. The total number is even bigger if we take in consideration also Metalac Metalurgija that covers the territory of Vojvodina with 70 customer of its own.
VLADAN STOJKOVIC Managing Director
- Thanks to more intens field work and better pricing policy our portfolio of clients developed widely and the sales volume is higher. This will surely bring results next year despite lower demand on the market, big pressure on the prices and increased presence of low-cost and as such low quality sinks – comments Vladan Stojković, director of Metalac Inko. He also considers that in 2012 great improvements were made to internal economy, organizational issues, discipline and efficiency of all 38 employees that most probably had biggest impact on good results. By the plan the biggest share was of stainless steel sinks in 2012. The program of granite sinks is well accepted on the market and their sales increased. More important fact is that with granite sinks we entered the medium class of consumers and higher price category, so we will work and develop in this direction in 2013. As for ex YU markets, the sales increased in Croatia, Bosnia and Herzegovina and Montenegro. There is space for better export results, as well as on the markets of Macedonia, Bulgaria and Kosovo which showed a fall in 2012. All these activities should bring us 5% growth in 2013. The most important is that Metalac sinks are perceived as quality products and considered as competitive in price. Tha marks on consumers' satisfaction were 13% higher, while on the exYU markets the average mark went up by 1%.
MGM REPORT
2012
36
Founded: Location: Activity : Market: 2008 turnover: Number of employees:
2006 as a subsidiary of Metalac Jsc. Gornji Milanovac, Serbia Production of stainless steel sinks since 1996 Producion of composite cast polymeres since 2008 Production of granite sinks since 2010 Serbia and ex Yugoslavian republics 2,1 million euro 38
2012 2011
M E TA L AC I N KO 100.000
2.500.000 2.000.000
1.797.062
2.072.105
-150.000
-300.000
60%
40%
56%
2012 2011
50.000
-250.000
T O TA L I N C O M E
50.000
44% 100.000
150.000
ASSETS
Non current / current
200.000
0
GROSS PROFIT 221.897
2012
215.988
2011
250.000
87.211
100.000
-177.431
-200.000
2012
0
150.000
-100.000
500.000
230.847
200.000
-50.000
1.000.000
2011
250.000
0
1.500.000
0
300.000
44.048
50.000
2%
60%
38%
52% 0
EBITDA
50.000
221.897
48% 100.000
150.000
215.988 200.000
250.000
LIABILITIES Inventories
Equity
Financial liabilities
Đ•UR
000 RSD Accounts payable
37
MGM REPORT
2012
INVESTMENTS BOOSTED THE SALES
Modernized equipment, new slotter and gluing machine for transport packing material, new offset machine for six-colour printing plus UV lacquer. 33% sales growth. 68% of total sales turnover made with sister companies. From 2013 double capacities for production of transfers.
In 2012 Metalac Print made the total sales turnover of above 4 million euros, in other words 33% more than the year before. The most important growth factor is 20% increased exports of the biggest buyer – Metalac Posudje, for which Metalac Print makes packing material and decor transfers. The total sale of products and services to sister companies increased by 38%, so their share in the total turnover of our packing producer was 70%. The production of decor transfers increased about 50% with respect to 2011. Printing machine was working around the clock. It is also important to mention that the sales to external clients increased by 11%.
MLADEN MATOVIC Managing Director
MGM REPORT
2012
38
The year 2012 in Metalac Print was marked with modernization of equipment aimed to gain competitive advantages on the packing market. A two-colour slotter was set up beginning of the year as well as a gluing machine for transport cartons, then the six-colour offset printing machine with UV lacquering was bought and first performances are expected in the first half of 2013. New upgrades of production are planned for 2013 and additional capacities for decor transfer production, and purchase of another line for screen printing. With such equipment Metalac Pring will double its production of transfers. According to the opinion of Mladen Matović, director, these timely investments helped to finish the year with success. The total value of the ivenstments was over 500.000 euros. Without that it would not be possible to respond to an increasing demand of decor transfers from Metalac Posudje, and of packing material from external clients.
Founded: Location: Activity : Market: 2012 turnover: Number of employees:
2006. as a subsidiary of Metalac J.s.c. Gornji Milanovac, Serbia Production of carton packing materials since 1995 Production of decals since 2000 Serbia 4 million euro 72
2012 2011
M E TA L AC P R I N T
4.500.000 4.000.000 3.500.000 3.000.000
300.000
4.053.878 3.046.436
200.000
2.500.000 2.000.000 1.500.000 1.000.000 500.000 0
0
77% 50.000
20% 23%
100.000
150.000
200.000
250.000
200.000 150.000 100.000 50.000 0
GROSS PROFIT 246.928
2012
157.783
2011
300.000
ASSETS 2012 2011
Non current / current
265.557
250.000
50.000
80%
0
300.000
100.000
T O TA L I N C O M E
397.106
350.000
179.685
150.000
2012 2011
450.000 400.000
263.565
250.000
20% 23% 0
38% 19%
EBITDA 42%
246.928
58%
50.000
100.000
157.783 150.000
200.000
250.000
LIABILITIES Inventories
Equity
Đ•UR
Financial liabilities
300.000 000 RSD
Accounts payable
39
MGM REPORT
2012
UPGRADE
OF INFORMATION SYSTEM Following the software and hardware policy of the Metalac Group all users of the IS are provided with quick, reliable, continuous and safe access to the information of the business environment.
The TÜV SÜD team once said that we were far ahead from most of the companies by accessibility and exchange of information, and overall information management system. These facts make part of the strategic approach of our company and the role of the IT sector is of great importance. Upgrades in this field never stop.
The new program UniDocs for document management was implemented to facilitate the work with documents, to have less printing and to provide easier archiving. In the first phase it covered the Development Section of Metalac Posudje. The system includes as well professional document scanners for A0 and A4 formats.
Today the Metalac Group has about 500 computer work stations with 4 junction points. The managemet of the computer based information system, software applications and hardware is upgraded in all aspects – design, development, implementation, support and service for end users.
Moreover, we made a set-up and started instructing key users for a new version of the ERP platform – ERP LN – and for all production subsidiaries.
In 2012 we had several IT projects, some of them should be mentioned. The company Metalac Metalurgija implemented and started using the business software Upis.NET covering the retail sales net in Vojvodina. Same software was implemented in the company Metalac Trade, while Metalac Proleter started automatic monitoring of the retail sales points also outside of Gornji Milanovac.
MGM REPORT
2012
40
The hardware upgrade of the system was made to follow the needs of the mentioned software platform, and one part of the net infrastructure was replaced.
IT CHANNELS
INTEGRATION
IN THE VIRTUAL WORLD
Parallel work on new web presentations, entering communication via social networks and preconditioning for B2B and B2C interaction are simply premises for timely reaction to the existing and expected market challenges. From 2012 we completely rely upon ourselves for creation of internet presentations. We made a team consisting of web designers, web programmer and content manager. As suggested by the team, Metalac passed to a unique CMS (Content Management System) platform for all future web presentations. In 2012 the subsidiaries Metalac Bojler and Metalac Trade got their presentations at: www.metalacbojler.com and www.metalactrade.co.rs. The web site of the Metalac Group is under construction. After that the presentations of other subsidiaries will be redesigned. Also on April 4th 2013 Metalac Market started new web shop. The first task of a special team of people from Metalac Market, IT and Marketing department and an external consultant is to create higher functionality of the existing internet shop at www.metalacmarket.com in order to increase sales and take better position on the internet market. Parallel work on new web presentations, entering communication via social networks and preconditioning for B2B and B2C interaction are simply premises for timely reaction to the existing and expected market challenges.
41
MGM REPORT
2012
MGM REPORT
2012
42
TRADING COMPANIES Five trading subsidiaries in Serbia made the total sales turnover of 26,8 million euros, 31% of the sales achieved by the Metalac Group. The biggest share of 32% in the total sales turnover is from Metalac Market, that runs 47 shops. Right behind and both with 27% each come Metalac Metalurgija, that deals with the market in Vojvodina, and Metalac Proleter, that supplies the residents of Gornji Milanovac with consumer goods, through 40 shops. The last but not least is Metalac Trade, that acts as a whole seller for imported household items, with 11% of the total sales turnover of the trading subsidiaries in Serbia. All these enterprises have similar share of 21 to 27% if we look at the margin. Finally, the company Metpor in Belgrade with only 4 employees acts as an agent and intermediary in the contact with foreign markets. Trading companies abroad made the total sales turnover of 13,9 million euros in 2012 - 39% growth compared to the previous year. Their share in the total sales turnover of the company was almost 16%. All of them are dealing exclusively with Metalac products. Absolutely the biggest share in the total sales of foreign subsidiaries was that of Metrot, Moscow - 72%. Behind it are Metalac Market Podgorica with 16% share, then Promometal Zagreb with 6,5% and finally the youngest subsidiary in Kiev with 5%. The company in Milwaukee still gives modest results but the activities go on.
43
MGM REPORT
2012
GROWTH
GENERATED CONTRARY TO THE GENERAL TREND OF SALES
In 2012. Metalac Market boosted its optimism with the fact that the consumers were back into Metalac shops and that the suppliers were willing to support planned actions of our retail chain. IS was implemented for higher overall efficiency.
Despite rather hard conditions for retailers, Metalac Market made total sales turnover of 8,72 million euros in 2012, and exceeded the result of 2011 by 13%. The margin was almost 15% higher than in 2011. The year was hard for all retailers and the result was obtained mostly due to various actions and promotions in the first half of the year. The second half, though equally active, went by somewhat easier. During 2012 Metalac Market operated through 47 shops. Two non-profitable shops were closed and three new were opened. Having in mind the potential of big cities - Niš and Belgrade will get 4th shop in 2013. Important result was obtained with household appliances, 29% higher than in 2011. Then the wide range of Metalac Trade items, under the trade name Sigma, with 20% growth in sales. As for Metalac products, only water heaters increased by 8%, while the sale of cookware went 3% below the result of 2011.
STOJAN SLOVIC Managing Director
MGM REPORT
2012
44
- Excellent cooperation with suppliers made all the activities for consumers possible. It was clear that only in support of each other our achievements could be higher in such difficult conditions - commented Stojan Slovic, director of Metalac Market. In 2012 we made a research on familiarity and perception of shops, as well as a Mystery shopper research, evaluating the set of elements referring to a shop, items positioning, knowledge and behaviour of vendors in 30 points of sale. Both researches are meant to give directions to Metalac Market for further activities in order to promote sales and identity of the shops.
Founded Location: Activity: Market: Turnover: Number of employees:
2006 Gornji Milanovac, Serbia retailer, with the chain of 47 shops Serbia 8,72 million euros 154
2012 2011
M E TA L AC M A R K E T
10.000.000 8.000.000
8.716.972
160.000
7.724.096
0
142.644
140.000
-50.000
120.000
-100.000
100.000
-150.000
80.000
-200.000
60.000
-250.000
2.000.000
40.000
-300.000
0
20.000 0
6.000.000 4.000.000
T O TA L I N C O M E 59%
2012
55%
2011 0
100.000
GROSS PROFIT
45% 200.000
300.000
400.000
500.000
Non current / current
11%
18%
565.446
2012
509.310
2011 10% 14%
600.000
ASSETS 2012 2011
-350.000 -400.000
5.155
41%
0
-220.003 -268.042
EBITDA 71%
565.446
76%
100.000
200.000
300.000
509.310 400.000
500.000
600.000
LIABILITIES Inventories
Đ•UR
Equity
Financial liabilities
000 RSD Accounts payable
45
MGM REPORT
2012
POSITIVE
RESULTS, BUT NOT IN ACCORDANCE WITH THE PLAN Metalurgija is relying more and more on its own chain of shops, in order to achieve more efficient sales management and higher margins. Stronger cost control helped positive outcome. Metalac Metalurgija is a trading company, dealing with wholesale and retailing of the Metalac products and household appliances of different brand names. Metalurgija covers the market of Vojvodina. The year 2012 ended with sales turnover level of 2011. i.e. almost 7,4 million euros. Though the margin was much lower than the year before, Metalurgija managed well the situation on Vojvodina market. The sales made by 17 shops of Metalac Metalurgija was satisfactory, but so called "field sale" failed to achieve planned results. On the other hand, situation in wholesale was even more dramatic, mostly because of strong and not loyal competition, selling at dumping prices. Managing director of Metalac Metalurgija Marko Sarenac considers the positive result at the end of the year as comforting, mostly due to maximum cost control. Good thing is that the shops were mostly redesigned, which helped the achievement of the final result. In any case, share of retail sales in the total turnover is growing.
MARKO SARENAC General Manager Metalac Metalurgija
MGM REPORT
2012
46
Investing into education of personnel, modernization of the shops and IS as well as obtaining more transport vehicles, are some of the objectives for better business in the coming period. - The practice shows that in present market conditions we manage the sales in a most stable way through our shops. In 2013 we will, therefore, work more to fortify our own retail channel, focusing on end users. After the Mystery shopper research in cooperation with the Marketing department, we started a new cycle of education on vending skills and product features in cooperation with suppliers. It is our wish and imperative to upgrade all aspects that could guarantee bigger success - said Sarenac.
Founded: Since 2004 Metalac Jsc. is a majority owner. Active for 60 years under the name Agrovojvodina Metalurgija Location: Novi Sad, Serbia Activity: wholesale and retailing of household items, with 17 shops in Vojvodina Market: Vojvodina, Serbia Turnover 2008: 7,36 milion euros Numer of employees: 101
2012 2011
M E TA LU RG I J A
10.000.000 8.000.000
250.000
200.000 7.618.980
7.360.968
203.273
157.252
200.000
150.000
6.000.000
150.000 100.000
4.000.000
100.000
84%
100.000
200.000
12% 300.000
400.000
0
GROSS PROFIT
16%
88%
2011
50.000
0
ТОТ A L I N CO M E
2012
0
76.855
50.000
2.000.000 0
469.347
2012
476.133
2011
500.000
Non current / current
EBITDA
45% 45% 0
100.000
ASSETS 2012 2011
185.305
55%
200.000
469.347
48%
7% 300.000
476.133
400.000
500.000
LIABILITIES Inventories
Equity
Financial liabilities
ЕUR
000 RSD Accounts payable
47
MGM REPORT
2012
GOOD
EXAMPLE OF A LOCAL GROCERY STORE Metalac Proleter in Gornji Milanovac marked the end of 2012 by opening a new shop, 40th in a row. In 2012 the total sales turnover was 7,37 million euros – 13% higher than in 2011. Five new shops were opened and 17 people employed.
Only 10 years ago it seemed that Proleter would vanish from the scene, and today it is one of the trademarks of Gornji Milanovac again, thanks to Metalac, which in 2003 became major owner and started a stressful process of financial consolidation and strategic restructure of this company. During all that time, not a single part of Proleter was sold and no one was dismissed. In ten years the company Metalac Proleter made progress in all its aspects. As the busines is geting better and better every year, today there are 40 points of sale throughout the municipality of Gornji Milanovac, 13 of them in the city. Retail stores were redesigned and reequipped and the consumers remained loyal to their "shop around the corner", as it has been for decades. There are in total 15.650 m2 of sales and warehouse space and about 6.000 items of consumer goods. Cherishing the habits and emotions of the citizens of Gornji Milanovac, this retail chain has revitalized the identity of Proleter as the first grocery store in the municipality, founded back in 1946.
SLOBODAN VUKAJLOVIC General Manager Metalac Proleter
The very successful 2012 was not only a result of good sales, but utilization of internal reserves and very brave decisions to enter important investments to upgrade and widen the retail chain. The 40th shop in a row was opened in 2012 with over 3.000 items of consumer goods. The managing director of this company Slobodan Vukajlovic could not hide how satisfied he was with the outcome in such heavy day-to-day circumstances. He points out that in 2012 new people were employed so there are now 190 employees in total. All was happening in absolutely unpredictable circumstances with constant fall of purchasing power, monopolistic behavior of certain suppliers, limited margin for basic foodstuffs that take 45% of the total sales ... In such situation Metalac Proleter has been converting threats into chances whole year and gaining its share of the market. The plans for 2013 are again rather ambitious.
MGM REPORT
2012
48
Founded : Locality: Activity: Market: 2008 turnover: Number of employees:
Since 2003 Metalca Јsc. is a majority owner. Active for 67 years, trading with consumer goods and supplying the residents of Gornji Milanovac Gornji Milanovac, Serbia Wholesale and retailing of consumer goods Gornji Milanovac municipality 7,37 euros 190
2012 2011
M E TA L AC P RO L E T E R
8.000.000
300.000
150.000
7.370.761 6.515.922
7.000.000
95.644
100.000
6.000.000
50.000
200.000
4.000.000
0
150.000
3.000.000
-50.000
100.000
5.000.000
2.000.000 1.000.000 0
20%
80% 0
100.000
200.000
20% 300.000
-122.854
-150.000
80%
400.000
Non current / current
0
GROSS PROFIT 457.789
44%
436.410
46%
500.000
ASSETS 2012 2011
109.888
50.000
-100.000
T O TA L I N C O M E
265.465
250.000
0
13% 15%
100.000
200.000
300.000
EBITDA 44%
457.789
39%
436.410
400.000
500.000
LIABILITIES Inventories
Equity
Financial liabilities
ЕUR
000 RSD Accounts payable
49
MGM REPORT
2012
BUSINESS
OPTIMIZATION CURE FOR DISBALANCE
With numerous limiting factors affecting importers, Metalac Trade ended the year with symbolic growth compared to 2011. Despite the strong competition, the trade name Sigma is recognized for the quality and wide range of items. With the factors that generally made things difficult in the local market, due to the fall of purchasing power and insolvency of certain clients, Metalac Trade was facing constant increase of purchase price of goods, dramatic cost increase for sea transport, dollar exchange rate fluctuations, long delivery time... In any case, the year has passed in efforts to balance the input increase and impossibility to rise sales prices. In such circumstances, Metalac Trade results were like the year before as the total sales amounted to 3 million euros. But due to the unvafourable factors of supply and conditions of the local market, the margin was somewhat lower than in 2011. The director of the company Dragan Tomic is pretty sure that such negative circumstances are not likely to repeat in 2013, when this company plans to achieve the growth of 5%.
DRAGAN TOMIC Managing Director
Two thirds of Metalac Trade sales income is made in the local market, while the rest comes from ex Yu markets. About 1700 items for household under the trade name Sigma are present in almost all sales channels, and in 2012 the sales through 64 Metalac shops were improved. Trying to be evenly present in all distribution channels and to cherish good partnerships with small retailers, Metalac Trade with various activities has developed its portfolio of clients with good and continuous communication at many levels.
MGM REPORT
2012
50
Founded: 2003 Location: Gornji Milanovac, Serbia Activity: wholesale of imported household items Market: Serbia and ex Yugoslav republics 2012 turnover: 2,95 million euros Number of employees: 25
2012 2011
M E TA L AC T R A D E
4.000.000
600.000 3.063.018
3.000.000
1.000.000
521.915 484.722
2.953.909
743.533
800.000
450.000
583.339
600.000 2.000.000
300.000
1.000.000
150.000
0
59%
0
50.000
100.000
40% 150.000
200.000
250.000
0
GROSS PROFIT
41%
60%
2011
200.000
0
T O TA L I N C O M E
2012
400.000
292.662
2012
259.871
2011
300.000
68%
Non current / current
20%
70% 0
50.000
ASSETS 2012 2011
EBITDA
100.000
20% 150.000
200.000
12%
10%
Equity
Financial liabilities
292.662 259.871
250.000
300.000
LIABILITIES Inventories
Đ•UR
000 RSD Accounts payable
51
MGM REPORT
2012
THE BEST
YEAR OF METROT IN RUSSIA In 2012 Metrot became the biggest importer of enamel cookware in Russian Federation. Continuous growth from the stressful 2008 culminated with over achievement of almost 45% compared to 2011. - This is the best results since we founded the company in Moscow. We are the biggest importer and we have the best offer of enamel cookware in the "medium-plus category" segment. Decisive were our dynamism, flexibility to fully adapt to the needs of the highly sophisticated market; the sales policy that had great impact on the quality and durability of our relations with the partners, and of course, wide assortment - as shortly commented by Milan Vujovic, director of the Metrot. In 2012 Metrot made the total sales of almost 10 million euros, which is 45% more than in 2011, while the margin increased by 56%. Following demands that came from Metrot, there were 18 new decorations, 8 of which were placed on the market and 800.000 cookware units were delivered in 2012. Records say that almost 120 trailers with goods from Metalac went to Russia during that year.
MILAN VUJOVIC Managing Director Asked "What are the previsions for the second half of the year?"Milan Vujovic explicitly responded back in July: "All is clear, we will be the best in offering enamel cookware in the "medium-plus category" segment and the biggest importer of enamel cookware in Russia."
MGM REPORT
2012
52
For 2013 Vujovic expects high inflation and currency pressure, and oscillations on the market of consumer goods, with contemporary growth and development of the market. Such premises made base to plan at least 5% increase of physical volume of sale, to prepare new communication with consumers through new decorations and new accessories on the products. The Metrot also bought one more truck of 115 m3 for more efficient distribution of the goods and therefore higher overall competitiveness. And finally the brand name Metrot with the message �From Serbia with love� is perceived as the best enamel cookware from Europe. Our company continuously makes research and analysis of consumers' habits and perception, and thus preparing new collections and decorations, which, beside quality, happen to be one of the most important competitive advantages on the Russian cookware market, where you can find both local products and foreign brands.
Founded: 2001. Locality: Moscow, Russia Activity: Wholesale of Metalac products Market: Russia 2012 turnover 10 million euro Employees: 31
Moscow: Cookware under the brand name ”Metrot” and with the message ”From Serbia with love” has been present in Russia for more than ten years. 2012 2011
METROT 9.985.982
10.000.000 8.000.000
6.877.754
6.000.000
1.800.000 1.600.000
1.000.000
1.400.000 1.000.000
200.000 0
91%
2012
9%
90%
2011 500.000
1.000.000
10% 1.500.000
2.000.000
2.500.000
GROSS PROFIT 2.703.929
2012
2.001.746
2011
3.000.000
Non current / current
EBITDA
45%
55%
36% 0
500.000
1.000.000
1.500.000
ЕUR
2.703.929 2.001.746
64%
ASSETS 2012 2011
751.463
800.000 600.000 400.000 200.000 0
400.000
T O TA L I N C O M E
1.562.030
1.200.000
697.930
600.000
2.000.000
0
1.200.000
800.000
4.000.000
0
1.291.400
1.400.000
2.000.000
2.500.000
3.000.000
LIABILITIES Inventories
Equity
Financial liabilities
EUR Accounts payable
53
MGM REPORT
2012
Founded: 2001. Locality: Kiev, Ukraine Activity: Wholesale of Metalac products Market: Ukraine 2012 turnover 700.000 euros Employees: 7
BRILLIANT START OF METALAC IN KIEV
Presence on the shelves of big international and local trading chains and the sales of 700.000 euros during the first year of business, announce a serious growth in the years to come. In 2011 when Metalac Ukraine as the youngest Metalac subsidiary was founded, first serious sales were made only during the last quarter of the year, but the 2012 is to be considered as a real start of the activity on this market with the population of 45 million. In 2012, mostly selling the cookware of the Metrot brand name, Metalac Ukraine made the total sales of 700.000 euros, with 13% over achievement, but with relative growth of 320% - being the first whole year of the activity. The satisfaction is great having in mind all the difficulties of this specific market: frequent and important oscillations of currency exchange rate as well as frequent changes in local regulations, then strong competition. There are, namely, three local enamel cookware producers in the Ukraine and they keep the leading position, and there is also competition from Russia and Turkey. Deciding to take a regional approach, our company already deals with fifteen clients that have great potential, and our products are on the shelves of the big retail chains in a higher price category. - The most important fact is that our products are available to end users on the shelves of big international and national retailers as Auchan, Real, MegaMarket, Nova Liniya, Velika Kishenya, Kray, Silpo ... We even made first export for a client in Georgea - said Vladimir Ponjavić, director of the Metalac company in Kiev, satisfied with the first year of activity.
VLADIMIR PONJAVIC Managing Director
For the third time also this year the Metalac products were presented at the Prymus Ambiente show in Kiev specialized for cookware. New contacts and partnerships were made. The plan is to introduce new decorations, to develop new ones with themes from Ukraine, and to offer other products of Metalac factories. 2012 2011
M E TA L AC U K R A I N E
800.000 700.000 600.000
70.000
500.000
60.000
400.000
50.000
300.000 164.070
200.000 100.000 0
T O TA L I N C O M E 72%
2012 72%
2011 0
40.000 30.000 20.000 10.000 0
28%
28% 100.000
110.000
90.000 80.000
695.094
200.000
300.000
70.000 50.000 30.000 10.000 2.417
345.525
2012
137.005
2011
400.000
29% 29% 0
MGM REPORT
2012
Non current / current
54
-6.782
-10.000
GROSS PROFIT
EBITDA
71%
Đ•UR
345.525 137.005
71% 100.000
ASSETS 2012 2011
91.226
90.000
76.650
200.000
300.000
400.000
LIABILITIES Inventories
Equity
Financial liabilities
EUR Accounts payable
Founded: 2006 Locality: Zagreb, Croatia Activity: wholesale of Metalac products Market: Croatia 2012 turnover: 900.000 euro Number of employees 8
ZAGREB
COMPANY BELOW THE PLAN
It was hard during all four quarters; at the end of the year the sales figures were below the plan, but similar to 2011 achievements. Optimism derives, however, from the fact that portfolio of clients has increased and still includes big chains; also, investments were made in logistics and information system. With the total sales of 900.000 euros, Promometal achievement was at 2011 level. Main factors that affected such underachievement of this Metalac subsidiary in Zagreb were a lower demand, the VAT rate in Croatia rised to 25%, the fact that many businesses ceased their activity and general call for saving. On the other hand, the director of the company in Zagreb Aleksandra Jelić is optimistic, due to the fact that Promometal kept its share in the big chain stores and further built up the portfolio of clients. Very worth mentioning are the new buyers of kitchen sinks that made important purchases this year, significantly higher than in 2011 when the company intensified placement of this product in the first place. Moreover, Promometal managed to cut the operational costs, do the IS upgrade and buy another truck for goods distribution. Considering that also the competition is facing big problems and only the strongest players will survive, we could expect from Promometal to obtain better market position, being supported by the strength of the Metalac Group.
ALEKSANDAR JELIC Managing Director
2012 2011
P RO M O M E TA L
1.000.000
928.349
0
902.306
100.000
87.199
-9.546
800.000
76.841
80.000
-50.000
600.000
60.000 -100.000
400.000
40.000 -150.000
200.000 0
-200.000
T O TA L I N C O M E 65%
2012
0
200.000
20%
400.000
600.000
800.000
0
GROSS PROFIT
35% 80%
2011
20.000 -185.064
712.274
2012
877.144
2011
1.000.000
100% 17% 0
200.000
Non current / current
Đ•UR
712.274 83%
ASSETS 2012 2011
EBITDA
400.000
600.000
877.144 800.000
1.000.000
LIABILITIES Inventories
Equity
Financial liabilities
EUR Accounts payable
55
MGM REPORT
2012
PLANNED FIGURES REACHED IN NOVEMBER
For the first time the sales of this company went over two million euros. An exclusive shop was opened last October and has been doing very well. Even though there was no much reason for optimism at the beginning of 2012, Metalac Market Podgorica made the total sales of 2,2 million euros, which was 18% more than in 2011. Both retailing and wholesale had better results. - All the efforts made during this year and the year before paid off and for the first time since the company in Podgorica was founded, our sales went over two million euros. We are pleased to have covered the whole market. We are present in all bigger trades and we have opened one more shop - estimate the director Čedomir Ralević and the commercial manager Sanja Dašić. Metalac Market Podgorica actually has six shops by the same name and with 40% share in the total sale, plus they boost the position of the Metalac brand on this market. The standard was rised with opening of the new shop in Podgorica in October 2012. The luxury concept of this shop was thought to comply with the purchasing power of the people gravitating in that part of the town.
At the opening of the new store in Podgorica: Tamara Djurovic - commercial director of Metalac Posudje, Marija Veselinovic - head of imports and export of Metalac Trade and Sanja Dasic - commercial director of Metalac Market Podgorica.
MGM REPORT
2012
56
However, the picture is not so nice because of the growing insolvency of the economy and impossibility to have timely insight in solvency of companies. Also, the predictions are that the world crisis is going to last. All these facts are worrying us because the market is small and practically there is no industry, everything is about trading and a three-month tourist season. The cookware share in our total turnover has decreased, due to the strong competition, but the sale of sinks, water heaters and Metalac Trade offer has grown.
Founded 2006. Locality: Podgorica, Montenegro Activity: retail and wholesale of Metalac products Market: Crna Gora 2012 turnover: 2,2 million euro Broj radnika: 29
2012 2011
M E TA L AC M A R K E T P O D G O R I C A 70.000
2.500.000 2.000.000
1.860.730
2.187.741
1.500.000
70.000
50.000
60.000 40.000
30.000
0
T O TA L I N C O M E 71% 66%
0
200.000
29% 34%
400.000
600.000
800.000
1.000.000
1.076.034
2012
825.667
2011
ASSETS 2012 2011
Non current / current
10.000 0
GROSS PROFIT
1.200.000
23.453
20.000
10.000
2012 2011
30.000
15.231
20.000 500.000
73.920
50.000
40.000
1.000.000
0
80.000
64.243
60.000
22%
78%
22% 0
EBITDA
1.076.034
78%
200.000
400.000
600.000
Đ•UR
825.667 800.000
1.000.000
1.200.000
LIABILITIES Inventories
Equity
Financial liabilities
EUR Accounts payable
57
MGM REPORT
2012
BILJANA CVETIC
Director of HR and legal affairs deprtment
DUSAN LAZIC
Director of development, organization and QMS/EMS department
RADMILA TRIFUNOVIC
NADICA VUJIC MITROVIC Director of Marketing department
MILAN NOVAKOVIC
Director of Accounting, finance Director of logistics and taxes department department
SUPPORTING
ALL THE SUBSIDIARIES AND THE COMMON GOALS
DRAGAN ZIVANOVIC
Director of IT department
JOVICA ZDRAVKOVIC
Director of Security department
At the level of general and joint functions the Metalac Group has integrated all the activities that contribute to more efficient operations and cost optimization, as well as centralized management of significant aspects of development of all its subsidiaries and of the company as a whole: human resources, market research and analysis, corporate brand management and management of product and service brands, social accountability, system of quality and environmental protection, development and implementation of informational technologies, finances and accounting, logistics, health and safety of employees, etc. In the Metalac business centre in Gornji Milanovac, respecting the formation, a day-to day immediate communication of the executive directors, directors of the subsidiaries and sector managers is seen as big quality. Such business culture is transferred also to lower levels of management providing efficient reaction to swift changes in the environment with coordinated persue of the strategic directions of the Company.
MGM REPORT
2012
58
SOCIAL RESPONSABILITY CREATES HEALTHY COMPANIES Basic strategy of Metalac Group is sustainable development of the company with balanced accomplishment of economic, social and ecology missions. All strategic documents such as the Code of Business Ethics, Code of Corporate Governance, Metalac Holding Development Strategy, Foundation Act of Metalac Fund, the QMS/EMS acts, expressly contain these elements. In the Company's day-to-day life this formal framework coincides with the specific corporate culture, the system of values and behavior formula, as well as the image that Metalac brand has in public.
Both theoreticians and practitioners agree that one of the reasons for the world crisis was absence of socially responsible behaviour and business conducting. Such painful experience and vivid examples of downfall of the "big" have shown that financial reports are not sufficient proves of success anymore, that with socially responsible companies the risk level is lower while motivation of employees is higher, and therefore produce healthy and reliable environment. The company Metalac allocates 10-20% of the profit for projects in the fields of ecology, education of employees, birthrate boost and development of sports in Gornji Milanovac... Roughly, each of about 1700 employees gives 20 to 30 euros a month for the projects that for Metalac have won the name of a nationally responsible and one of the healthiest Serbian companies. In circumstances of the crisis Metalac responsibility is even more respectable, having in mind that the agreement was made with the workers to share the burden of the crisis and no one would be fired. All the values of corporate socially responsible behaviour are actually working in favor of the primary business logics. Social responsibility does not a priori mean giving, but balancing of various aspects that bring higher profit and augment company's value. Business ethics and transparency, care for people and for the community, protection of human rights, product and service liability, environmental protection, strengthen corporate reputation and relations with inside and outside users and shareholders.
59
MGM REPORT
2012
THREE RECOGNITIONS FOR ARTISTIC
BALANCE
OF HIGHER CAUSES
Considering all Metalac made great success and as a big compliment got awards even three times for socially responsible business conduct, such as 2008 National CSR award. Today affirmations of Metalac achievements show how a set of values, activities and behaviour, economic, social and ecology objectives can be successfully integrated. This trinity is however integrated into strategic plans and all strategic documents of the Metalac. When its said in bourse terms that Metalac is one of the healthiest Serbian companies, if the word "morality" or the metaphor "Patriot of 21st century" is used as a synonym for Metalac success, if the simple word "trustworthy" can sum opinions of employees about their company, and the president of the company is recognized as "Virtue laureate for for special contributions to the preservation of the Serbian economy in a socially accountable and morally credible way" ... the background is always in balanced achievement of the three mentioned objectives. Beside business results that brought benefits to the shareholders and employees, it is important to mention that during the fourth year of the economic crisis there were no employees fired, and all the activities to improve quality management system and ecology system, as well as the activities of the Metalac Fund have continued.
TRUST IS AN AXIOM
The name Metalac is always connected with socially responsible and moral behaviour. Metalac is aware of its impact to the community, from benefits that come out and the overall business results, new job positions, fair and secure work conditions, activities directed to environment protection, to the attention paid to social problems, cultural, sports and other needs of the community in which the company exists and operates. To improve economic efficiency, to make the Company and its competitive advantages grow and develop, to earn even more trust, to protect interests of consumers, business partners, shareholders, investors and of the community better - it is clearly emphasized in the Codes of Corporate Governance and of the Business Ethics. These two documents are considered as a must for the management, obliging all the workers of Metalac, and very important for mutual understanding and development of long term quality relations with all interested parties.
FRIENDS
OF SUSTAINABLE DEVELOPMENT
For 25 years Metalac has been showing methodically, systematically, continuously and measurably that the health of employers, protection of consumers, ecology and sustainable development are not only a commitment, but the way of thinking. Metalac have chosen to integrate quality management and ecology management systems, so today over 50 parameters significant for the sustainable development are measured and rationalized. At the beginning of 2008 Metalac subscribed to the UNIDO project managed by the National Centre for Cleaner Production in cooperation with the Belgrade Faculty of Metallurgy and Technology. The most important aspects are rational use of electrical energy, raw materials and water, reducing enamel waste and consequently reducing costs of waste treatment, better work conditions and motivation of employees to integrate into the process. Overall and automatic process of treatment of waste waters from Metalac production for the town of Gornji Milanovac means high quality of drained water and safer and better functioning of the communal depurator. Moreover, production of products that could be recycled shows social responsibility of Metalac in the field of ecology. In Metalac special care is taken in provision of raw materials, trying to use mostly natural materials in the production process and to replace old types of raw materials with those containing less hazardous materials.
MGM REPORT
2012
60
In 2009 the scorecard team of the Serbian Chamber of Commerce, Belgrade Exchange and IFC, made an analysis on practices of corporate governance of the company Metalac, upon request of the company itself. The report they delivered showed that the total score of compliance with all the relevant parameters according to the scorecard was 74,13% which ranked Metalac Group as a company with highly respectable practice of corporate governance. The scorecard team focused on the relevant parameters such as dedication to the principles of corporate governance, shareholders and their assembly, management board, executive bodies of the company and the company secretary, monitoring activities, control and external auditing, transparency and publicity.
Metalac workers and specialists are highly respected in the business environment because they are developing in a system with deeply rooted values where work, order and discipline are understood and entrepreneurship, honesty and loyalty are highly appreciated. Moreover, Metalac has a consistent team of managers with high ethic principles, as governing example for young people.
GOOD PRACTICES OF CORPORATE
GOVERNANCE
THE PEOPLE
AND THE COMPANY LOOK A LIKE
Knowledge has become a key resource of development. Its strategic abilities and adaptability to changes Metalac has been upgrading with day-to-day education and instruction in all relevant fields. This practice of constant education is at all levels of production and business process.
A long term dedication to social issues was brought to a higher level in organization and management, with foundation of the Metalac Fund in 2006. The Fund was established for „humanitarian and other social purposes, contributions and help in scientific, cultural, artistic fields as well as for sports, and for all other activities of strategic, progressive and social interests“.
VALUABLE ONLY IF OF COMMON
BENEFIT
Due to devastating statistics on birth rates in Serbia, community of Gornji Milanovac and the Company itself, first funds of the Fund were given for the campaign „Children – Our Joy and Future“ stimulating young people to start families. Benevolence and support which the company offers to the people who want to start or expand families, gives also the sense of security to young people, and that is not a frequent example in the Serbian industry.
Not even the years of world economic crisis made our company question its beliefs that promotion of sports and education of the youth should be nourished, because young people and their competitive spirit and enthusiasm are the future. Such consistency expressed with high figures and deep socially responsible philosophy, has kept over 600 sports women and men, ages from eight to seniors, gathered in seven clubs within the „Metalac“ Sports Society. Almost 70% of their needs is financed by the Company, which in 2012 for the 50th anniversary of the FK Metalac has built a football stadium in Gornji Milanovac by international standards.
The message „Divide to multiply“ and the motto of the corporate jubilee „You can count on us“ express the deepest beliefs of Metalac that there could be prosperity only for a company that keeps human features regardless all the imperatives of market struggle, one that is apt and willing to recognize and share certain values with its environment. The important aspect is making profit and growing in a way to make the company proud and benefit recognized. The corporate reputation of Metalac is in fact an expression of well integrated business strategy, corporate culture, ethics and socially responsible behaviour, and all that qualifies for the highest league of companies.
FOR HEALTHY AND
SPORTY
YOUTH
DIVIDE TO
MULTIPLY
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2012
QUALITY AND ENVIRONMENTAL PROTECTION POLIC Y
Guided by the vision to sat isfy completely all requests parties, the key to our contin of uous success is the quality our customers and other interested of the product we put on the always following the princi market, ples of sustainable develop ment.
Complying aims of our quality policy • • •
• • • • • • •
and environmental protection
policy are:
process and product risk ass essment and control from project phase to disposal of products upon ceased use; reliable and consistent fabrica tion of products and services; optimize energy and other nat ural resources consumption, reduce harmful waste, reduce use of dangerous materials inc luding management of waste collection, classification, disposal and of secondary raw ma terials; constant process improvement and investing in desings and technologies; to develop long term partne rships with our clients, consum ers and suppliers; constant education and instruc tion of all employees and oth ers that work on behalf of the company including counceling service for buyers and consum ers; responding to law requireme nts and regulations applicable to the products, environment and other segments of the bus iness; provide internal and external communication with employee s and all interested parties, business costs optimization, and with our work, quality and pro fit to provide dividents for sha reholders, to increase the capital, and provide protection and higher standard for the em ployees, to help the society in needs and activities acting as a good neighbor.
It is a responsability of each and every manager in all seg ments of the Company to foll quality system. All employee ow and improve the s are responsible to perform the undertaken liabilities throug agement system, according to h the ecology mantheir best knowledge, accord ing to the system document feed-back. No product and no ation and providing working act of any affiliate or person, shall spoil with its qua Metalac ad on the market and lity the image of in the environment. As we carry out this quality policy we will achieve the obj ective – higher competitivene ances in environmental protec ss, higher performtion, we will produce high qua lity products with recognized differ us from competition on brands which will the world market, and we wil l be leaders and name of utm the local market. ost confidence on
2013-02-28 Gornji Milanovac
Petrasin Јakovljevic,
Managing Director
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2012
62
RESERTIFICATION
FULLY DESERVED - It is an honor to visit again the company that traditionally cherishes quality and the environment. Such approach favors competitiveness and serves as a mean to fight for better results, which for Metalac is consistent even in hard times like we are going through now – said Bosko Gavovic, director of the TÜV SÜD Serbia presenting the certificates to the Metalac Group and daughter companies Metalac Bojler, Metalac Inko, Metalac Posudje, Metalac Print. In June the external assessment team of the TÜV SÜD Serbia carried out the fifth audit for ISO 9001:2008 certification and the third audit for ISO 14001:2004 which have shown full respect of rules and principles of quality management by Metalac. Bosko Gavovic, director of the TÜV SÜD Serbia handed the extended certificates to the managing director of the Metalac Petrasin Jakovljevic and to the managers of daughter companies Metalac Bojler, Metalac Inko, Metalac Posudje, Metalac Print. - Considering that we are operating in a very difficult branch of industry with low profitability, Metalac is surely one of the most successful companies. What favored our overall success in all these years was that we timely understood how our cycles and processes needed to be managed by world valid standards.
Twenty years ago we already started thinking about that and getting prepared, so in 1994 we were among the first to get the local certificate and then also the international certificate in 1995 – said the Managing Director of Metalac pleased with the fact that improvements in this field were proven by the last audit. During the June audit the external assessment team of the TÜV SÜD Serbia found out that the QMS/EMS improvements were notable in all the business segments, human resources showed surprisingly high level of the system implementation, as well as information accessibility, availability, efficiency of exchange and management. All these factors characterize Metalac as outstanding if compared to most other companies. The findings also showed different upgrade level between the segments in different daughter companies and therefore general suggestion would be a maximum exchange of positive experiences within the company.
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2012
R
"GREEN POINT" ON THE PACKINGS OF METALAC PRODUCTS Following the Brussels Pro-Europe regulations, the packing of products from five Metalac subsidiaries wears the "Green Point", meaning that the fee has been paid to the national operator of the packing waste management system . Having previously signed the contracts for transfer of obligations of packing waste management to the operator „Sekopak“, Belgrade, five Metalac subsidiaries made contracts on use of the "Green Point" mark ( Der Grüne PunktDSD AG - registration nubers 585 714, 585 713, 653 450 i 653 449 ). These are: Metalac Posudje, Metalac Bojler, Metalac Print, Metalac Inko and Metalac Trade.
REPORT ON PACKING MATERIAL PUT INTO CIRCULATION ON THE MARKET OF SERBIA IN 2012 Metalac Bojler Metalac Inko Metalac Posudje Metalac Print Меtalac Trade 78.909 6.305 167.942 0.022 71.047 Paper/carton 17.132 1.366 8.857 2.835 0.000 Plastics 3.407 0.000 1.889 0.227 0.000 Metal 0.000 1.181 86.362 22.798 14.975 Wood 99.448 8.852 265.050 25.882 86.022 TOTAL
PACKING WASTE
MANAGEMENT
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TOTAL 324.225 30.190 5.523 125.316 485.254
By the national goals – the Plan for reduction of the packing waste for the period 2010 – 2014, the goal of reduction through secondary usage and the recycling process was 16% in 2012. As Metalac obligations of packing waste management were transferred to the operator Sekopak doo, during 2012 they provided of 26,225,15 tons of packing waste for recycling, it is to say 17,4% and the goal for 2012 was therefore achieved.
EMISSION OF HAZARDOUS AND DANGEROUS SUBSTANCES DOES NOT EXCEED THE
LIMIT VALUES
m3
Consumption of water 3.000
2.845 2.395 1.951
1.500 Following the legislative regulations the Workers Health Care Institute Novi Sad carried out measuring of hazardous and dangerous substances' emission at the end of March 2012. After measuring the emitters  in the production plants and buildings of Metalac in Gornji Milanovac, and upon comparison of the measured values to the prescribed limit values, and evaluating position of the plants with respect to habitation areas, the conclusion was that the emission of hazardous and dangerous substances from the exhausts DID NOT EXCEED the limit values, and therefore the Metalac production plants DID NOT ENDANGER the environment by their activity.
0
20
2012. %
18,0
16,8
16,8
2011.
2012.
10
100 TONS OF HAZARDOUS WASTE
In compliance with the Law on Waste Management, Metalac Posudje Ltd. stipulated a contract on enamel (hazardous) waste takeover, transport and disposal with the company Modekolo Ltd. from Belgrade. During October Metalac Posudje Ltd. in that way disposed 101,034 tons of hazardous waste at the cost of 4.618.584 RSD.
2011.
Quantity of waste enamel
0
DISPOSED PERMANENTLY
2010.
2010.
Quantity of waste sheet metal
%
40 30
30,46
29,43
28,97
2010.
2011.
2012.
20 10 0
65
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66
HR
67
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HUMAN RESOURCES ARE
THE GREATEST POWER OF METALAC OUR GUIDING PRINCIPLES AND RULES
All employees of Metalac Group operate on values and principles integrated in professional standards and professional rules with ethical norms. In the last 20 years, despite the erosion of a range of values in a broader environment, Metalac unreservedly insisted on the principle that in business, as well as in life, only a fair relationship and accountable behavior may result in mutual trust and respect within the company and in relation to partners and end users. This is why we are happy and proud to include all the principles we have insisted on in Code of ethics, whether it relates to unwritten but immanent behavior of the Metalac employees, or a part of stipulated standards, policies, rules and behavior.
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2012
What Metalac implies is:
Working discipline and personal responsibility for the quality of the work done Undisputed company property Observance of all quality and environmental protection standards Observance of work-related procedures Observance of laws and regulations, decisions and orders issued by superiors Observance of provisions from business agreements Observance of business etiquette Democracy in decision-making, dictatorship in implementation Treating employees with respect and in line with principles and protection of human rights
What Metalac expects from employees is:
Commitment to work Orientation towards customers and permanent growth Orientation towards goals Impartial and correct relation within the company and with business partners Openness in communication Permanent promotion of knowledge and skills Orientation towards team work
What Metalac especially values is:
Loyalty to the Company Permanent improvement and creativity Innovativeness Business decisiveness and enterprising spirit Personal and business integrity of the employee
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EMPLOYEES
COME FIRST
The Metalac Group has 1.700 employees, 170 with university degree. In the hierarchy of human resources which are decisive for Metalac business activities, the employees absolutely come first. Following such system of values and, of course, company based agreements, Metalac Fund resolutions... the Company in many ways expresses its responsability and dedication to the people it employs.
•
Average salary of the employees is always above the national average, and much higher than the average of the industry branch. For over 20 years the paycheck arrives at 10 o’clock on 20th of the month, not later, only earlier if 20th is a weekend.
•
Guarantee that salaries are adjusted to the living costs index plus real growth as by the business results and gross national product growth.
•
Premiums for all workers and managerial staff
•
Employees’ children which are regular students at university receive Metalac scholarships
•
Christmas presents for all employees’ children up to the age of 8
•
Each employee for a newborn in the family gets a greeting check of 500 to 4.000 euro from the Metalac Fund, amount depends on which in a row the child is.
•
Medical assistance and a dentist are at disposal to each employee within the Company’s medical unit.
•
Solidarity and financial aid to employees in case of death of a family member or parent.
•
Solidarity aid to families in case of death of an employee.
•
Solidarity aid to employees in case of a natural disaster.
•
Aid to employees from the Employees’ Prevention and Recreational Vacation Fund
•
Scholarships for regular education of children of dead employees.
•
Conditions for continuous improvement and education
•
Additional voluntary pension fund for 270 employees
•
Additional insurance for 36 managers
•
Right to anniversary awards
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EDUCATION AT ALL LEVELS
The importance that is given to the personnel policy – in selecting, educating and upgrading experts’ knowledges, especially of those who hold leading positions in the company – comes from the axiom that people are irreplaceable resource of a company. For 25 years the Metalac has had in-house development of managerial staff which is of great strategic importance.
A long term practice of Metalac to organize educational courses and trainings for the personnel has been one of the most powerful means to face all strategical and everyday problem. During two and a half decades Metalac has been continuously planning and investing into human resources. The list of regular and temporary associates includes famous lecturers of the Adizes Institute in Serbia, Bled School of Management, Mokra Gora School of Management, MNG Centre... Special accent is on the cooperation with Belgrade and Kragujevac Universities. Moreover, the Company regularly provides additional education or information to the employees at various specialized seminars and conferences.
The internal courses for the employees cover the subjects like: implementation of the integrated QMS/EMS, safety and health at work for employees with higher risk job positions; instruction of the people working in the Accounting Financial and Taxation Sector and in the HR and Legislation Sector... In 2012 around 100 employees attended the planned courses, seminars and management programs apart from regular internal courses.
2012. COURSES
INSTITUTION
ATTENDERS
English/Italian/German Language
The house of words Gornji Milanovac
16
Arts of Negotiation
Mokra Gora school of menagement
Arts of Presentation
Mokra Gora school of menagement
Finances for Non-financialists
Mokra Gora school of menagement
26 24 25
Mokra Gora school of menagement
2
Accounting practices, subject: Annual financial reports and taxation
Tatic, editor in chief of „Racunovodstvena praksa“ magazine
2
Implementation of the new Litigation law
MNG center, Belgrade
Stress and Burn-up Sindrom
MNG center, Belgrade
SEMINARS
MANAGEMENT PROGRAMS Serbian Mangement Program
INDIVIDUAL TRAININGS
Fire protection training and exam for employees of the work safety department
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70
3 1 1
CAREER
MANAGEMENT The HR Department follows the careers of the highly educated employees. From the first day at work, through annual evaluation of work performances and creation of HR files.
Beside the selection system at acceptance of new employees as a complex task, the HR Department once a year makes evaluation report on work performances including overall work action and behaviour of employees who spend more than a half of the evaluation period at work . So apart from being evaluated by their immediate superior officers, the employees with high education have a self-evaluation reporting. The superior officer, after evaluation, makes a feedback interview which is the main goal of the evaluation process. The purpose of such feedback interview is to compare the two sides (at self-evaluation), explain one's opinion and votes, give constructive and open remarks on what is good, what should be kept and what should be modified.
Career management helps to get higher flow at internal level, sufficient number of employees that could be promoted, faster and more efficient replacement of employees that are about to leave, better re-distribution of people – right person at right place and right time. Beside that, the Company has more ways to stimulate people and provide better professional development for them, and thanks to that people become more successful at work. HR file of an employee includes general information on qualification and skills, data obtained by testing hers or his personality, learning styles and team roles, etc; annual evaluation of work performances and individual development plan with goals to be reached. It is therefore an objective data base indispensable for management of employees' professional development.
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2012
9% MORE
COMPANYES
EMPLOYEES
Metalac Jsc. Metalac Posudje
The Metalac Group consists of Metalac Jsc. as a controlling company and 14 subsidiaries, two of them being share companies where Metalac holds the majority share, while others are with limited responsibility and 100% owned by the Metalac. On December 31st 2012. Metalac Group had 1.702 employees, 9% more than in 2011.
Metalac Print Metalac Inko Metalac Bojler Metalac Market Metalac Trade Metpor Metalac Metalurgija Metalac Proleter Metrot Promo-metal Metalac Market Podgorica Metalac Ukraina
EQUAL
TOTAL
NO. OF EMPLOYEES 2011.
2012.
174 711 66 38 75 146 25 8 98 171 30 7 22 5
177 788 72 38 78 154 25 4 101 190 31 8 29 7
1576
1702
IN GENDER In 2012 the employees with age average of 39,6 are 3 years younger than a decade before. From 1.700 employees 54% are under the age of 40. The age category 30-40 is the most numerous with around 500 people. Women make 45% of all the employees in all 14 companies. Promotion of gender equality is a continuous practice in the Metalac company, as reported to the Gender Equality Directorate. All jobs in the Company are equally available to women and men. Work conditions are the same and privileges depend only on someone's work results. Due to specific production in certain subsidiaries men are much more present, while the situation is quite opposite in two trading subsidiaries that act as retailers with many points of sale.
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There is a good work atmosphere where both women and men could feel equal, that care is taken of their rights and dignity, considering also their differences and needs, that there are conditions to coordinate private and professional life. The Metalac affirmation of it is visible in many aspects like stimulating employees to start families, with financial support and secured job position after a maternity leave. Lower managerial positions and metalworking jobs are 60% taken by men. From 143 managerial positions women take 50 i.e. 35%; if we look at the mother company Metalac ad, from 7 managerial positions 4 are taken by women.
Age
-20
21-30 31-40 41-50 51-60
60+
TOTAL
%
Men Women Total
45 5 50
225 151 376
17 1 18
940 762 1702
55 45 100
250 243 493
208 213 421
195 149 344
10% WITH
UNIVERSITY DEGREE By end 2012 there were 126 i.e. 9% employees more in the Metalac group than in 2011. Due to increased volume of work in production sections, the number of employees with III and IV degree of education increased by 13%. Over 10% of the employees in Metalac Jsc. and daughter companies are with university degree, mostly in economy and mechanical engineering, then electronics, chemical engineering, IT and law.
Faculty graduates No. of employees 2012.
VII2
VII1
VI
V
IV
III
II
I
TOTAL
3
171
113
6
550
563
96
200
1702
COOPERATION WITH TRADE UNIONS AND
SOCIAL SUPPORT In the Metalac company operate two trade unions: the majority Confederation of Autonomous Trade Unions of Sebria and the minority Independent Trade Union. 77% of employees has membership in either of the two trade unions. Good communication with employees and therefore cooperation with trade unions as main social partners of the Metalac management are of great importance.
In 2012 the Metalac Group gave employment to 261 persons, 12% more than in 2011. There was 15% less redundancy; there were only retirements, disability retirements, terminated employees, transfers to other sister companies...,
TRADE UNIONS Autonomous T.U. Independent T.U. Total members Total employees
Employed Terminations Total employees
No. of employees
% of the total number
1.053 258 1.311 1.702
62% 15% 77% 100%
2011
2012.
233 159 1.576
266 136 1702
There were 266 new employees within Metalac Group in 2012 - 14% more compared to 2011, while 15% less workers quit their job whether for retirement or disability pension, the end of the past-time job, transfer to other company, notice or agreed termination of the contract.
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Although the statistics in Gornji Milanovac seem sad because for couple of years there are under 300 newborns yearly, Metalac can be proud of sending a great message not only to its workers but to the whole society. Metalac babies are an example of responsible behaviour of the Company that in many ways shows respect and promotes rights and position of employees, women and especially children.
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2012
THE FUTURE
IS HAPPENING AS WE SPEAK With 44 babies we did much much better than the previous year's outcome of only 34. So the growth of Metalac was boosted with 30% more newborns in 2012. In seven years the Metalac Foundation donated 300.000 euros for 290 children. About thirty of them are going to school now.
The hall of the House of Culture in Gornji Milanovac was completely full with audience when the managing director and the president of the board of the Metalac Foundation, Petrasin Jakovljevic, presented the greeting cheques to the parents of the babies born in 2012. First Metalac babies that received the cheques back in 2006 are starting school this year. In seven years of the Metalac Foundation whose major objective is to promote family values, Metalac donated almost 300.000 euros to welcome birth of 290 babies: 500 euros for the first child in a family, 1.000 euros for the second, 2.000 for the third, and fourth and over get 4.000 euros. In these seven years we had twins several times, triples two times, and three families got their fourth child, we had two families with fifth and seventh child. The traditional New Year Celebration on December 27th gathered all the "Metalac babies" born from the moment the Foundation was established till that day. The president of the Company Dragoljub Vukadinovic and the Board members of the Foundation attended the celebration. Only few days before, Metalac sent a Santa Clause to take the presents to the children in kinder-gardens of Gornji Milanovac. On December 25th the Santa gave mugs with famous Disney characters filled with candy to 700 children followed by the Metalac representatives.
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METALAC AN EXAMPLE OF GOOD PRACTISE
At the Conference “Children's Rights and Business Principles“ the presentation of the company Metalac was an inspiring example of good practice that integrates the "Principles" in all business aspects - this was the common conclusion at the clossure meeting - reports "e-kapija" with general impression that we are talking about an autochthonous approach of the local company that leads business in a rather difficult branch of industry
On 7th June 2012 at the Serbian Chamber of Commerce UNICEF, UN Global Compact Serbia and Save the Children held the conference “Children's Rights and Business Principles“, attended by more than 50 representatives of businesses and the civil sector During a very active discussion rich examples of good practice were given by the representatives of Telenor, Represent Communications, Metalac, Ikea Srbija, Coca Cola Company, Komercijalna banka, Delhaize Group, and Telekom Srbija -Children represent one third of the global population, but also 100 percent of future consumers and investors“, said Paul Hohen an international expert in corporate responsibility and main consultant at the conference The discussions were in most part dedicated to a challenging implementation of the Principle No.3 about providing decent work conditions for young workers, parents and caregivers. As stressed, the grade of children' rights performance is directly dependent from performance of rights of their parents at workplace. Therefore care should be taken of mothers and women discrimination at employment and of parental liabilities of employees. The company Metalac with its autochthonous approach was an inspiring example of good practice that integrates the "Principles" in all business aspects.
77
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2012
Q
BOTH AND
UALITY UANTITY
The Metalac Group never stops investing into children and young people, and promoting sports. Today under the sponsorship of the Company and within the Metalac Sport Society, there are six clubs with about 600 members that compete in first and second leagues. Beside the teams which compete, great number of children and teenagers are training in these clubs. We could say that over a half of all sports people in Gornji Milanovac are practicing sports in the Metalac Sport Sociaty on daily basis.
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The Football Club “Metalac” as pride and joy of the sport society with a new modern stadium is highly positioned on the list of the First Serbian League in 2012, with a chance to return to the Super League. Over 207 players are registered in the Football Club “Metalac” from the senior team to the generation of 2002 that are competing successfully in the Regional „cockerel“ league. Beside that around 100 kids ages 6-9 regularly practice in the club. The Chess club “Metalac – Takovo” managed to enter the Serbian Super League. As debutants among the best teams in Serbia, they ended the season in the middle of the score list and kept the Super League status. Each year a lot of kids attend the chess school held by this club.
The Bowling Club “Metalac” is at top positions in the Serbian Super League for years. They took third place in this season and that means they could compete in Europe. The bowlers made good results in individual competitions of the Serbian Championship, while the couple Goran Caluković and Ivan Trosic won the national championship in this category. In order to keep the continuum in the senior selection, there is another team competing in the Serbian league. The Female handball Club “Metalac” also keeps the company in the first league. After some experienced players have left, the team got younger players, and it is among the youngest teams in the First Western League. Beside the competitors there are about 40 girls and boys attending the school of handball.
Once in the first league, today stable in the second league The Club of Small Football “Metalac-Kolorado” finished the season in the middle of the score list. The news in the club are younger players from our town, juniors who are later recruited for the senior team. The youngest member of the Metalac sports family is the male selection of the Volleyball Club “Metalac-Takovo” which has been active for 2-3 years only finishing seasons at second or third place, just about to reach the First League. Almost all players are from Gornji Milanovac. From this season there is another team included, giving chance to children to play in the Regional league as juniors and cadets. The volleyball school of the club is very advanced and attended by numerous youngsters ages seven to twelve.
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2012
STADIUM FK METALAC
- PROMOTION OF SPORTS AND THE CITY OF GORNJI MILANOVAC Before 4000 people that attended the ceremony, FAS president Tomislav Karadzic, manager of the Serbian national team Siniša Mihajlović and president of the Metalac Group and of the FK Metalac Dragoljub Vukadinovic cut the ribbon. The ceremony ended with draw result 2:2 between the local FK Metalac and Serbian national team made up of players from the Jelen League. Continuing its support mission and promotion of sports in Gornji Milanovac, the company Metalac has built a football stadium in only 11 months. The modern construction of the stadium with 4.400 seats and by all FIFA and UEFA standards for international games is among the best in Serbia. The inauguration took place on 12th September and way attended by numerous senior officials and representatives and over 4.000 citizens of Gornji Milanovac and football fans of the surrounding, who enjoyed the spectacle under reflector lighting. The investment value of about three million euro was divided by the company Metalac 85%, FK Metalac 15% with generous help from the municipality of Gornji Milanovac and FAS. - The company Metalac has been building new factories for decades. This is one of its factories that produce excellent football players - said Tomislav Karadzic pointing out that the completed stadium was built by all European and FIFA standards and could therefore host also international matches. The Contractor company Amiga from Kraljevo handed the keys of the stadium to Dragoljub Vukadinovic, who in the name of the company Metalac dedicated this big investment to the future of sports in Gornji Milanovac, addressing the guests and spectators of the match between the local FK Metalac and Serbian national team made up of players from Jelen League. that ended with draw result 2:2. Numerous guests from the FAS, officials, media representatives, friends from other clubs were welcomed at the entrance by president of FK Metalac and of the Metalac Group Drаgoljub Vukadinovic and managing director of Metalac Jsc. Petrasin Jakovljevic.
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The ceremony was attended by FAS (Football Association of Serbia) president Tomislav Karadzic, General Secretary Zoran Lakovic, vicepresidents Ivan Djurkovic and Ratomir Babic, as well as Serbian Club Association General Secretary Miodrag Jankovic, then people from the Regional football association, presidents of Jelen Super Liga clubs and The first Serbian Liga and also representative of Partizan Dragan Djuric.
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AWARDS AND RECOGNITIONS 2012
VIRTUE LAUREATE
2011
DIPLOMA FOR EXCEPTIONAL CONTRIBUTION TO BUSINESS ECONOMY
By the decision of the Serbian Association of Economists to Dragoljub Vukadinovic, President of the company Metalac.
AWARD FOR BUSINESS ACHIEVEMENTS
To Dragoljub Vukadinovic, President of the company Metalac from the Serbian Chamber of Commerce.
MY CHOICE
In the campaign serbia has quality Metalac Posudje was presented again with the award in the category of “Furniture, cookware and household appliances” .
2010
THE BEST CORPORATE BRAND
The award for the best corporate brand in the competition THE BEST FROM SERBIA, categоry of Long Life Consumer Goods.
MY CHOICE
The award in the category of “Furniture, cookware and household appliances” for Metalac cookware, in the campaign “Serbia has Quality”.
2009
CSR SERBIA AWARD 2008
National award for socially accountable behavior in the category of big copanies.
GOLDEN PLATE FOR CORPORATE AND SOCIAL RESPONSIBILITY
from the Club of Business Reporters - category Distinguished Companies and Personalities in 2009.
THE GOLDEN COIN
For achievements and contribution in the field of corporate accountability by the Regional Chamber of Commerce in Kraljevo.
GOLDEN PLATE
Municipality of Gornji Milanovac for contribution to overall development of the community 2009.
BELOVED BRAND
Second award in the campaign “Loving brand - Living brand”.
with the image of the Captain Misa Anastasijevic
MGM REPORT
2012
Тo Dragoljub Vukadinovic for special contributions to the preservation of the Serbian economy in a socially accountable and morally credible manner. The award given by the Mokra Gora School of Management together with the partners: the Economics Institute, Faculty of organizational Sciences, Serbian Chamber of Commerce, Belgrade Chamber of Commerce, Serbian Business Club ”Privrednik“ and Serbian Association of Corporate Directors.
82
The Fund for Quality Culture and Excellence (FQCE) and the magazine ”Kvalitet“ with support of the Serbian Chamber of Industry and the Ministry of Economy and Regional Development. In the campain”Give advantage to pregnant women”.
2008
OSCAR FOR QUALITY 2007
MEDAL of the NGO ”Bebac“
2006
For the best quality, by decision of the jury of the Serbian Chamber of Commerce, the Faculty of Technical Sciences Novi Sad and the Media Invest agency.
FOR CONTRIBUTION TO THE PROGRESS OF THE SERBIAN INDUSTRY STATUETTE KAPETAN MISA NASTASIJEVIC
Third place for the corporate brand Metalac and first place in the category of household items for the brand Metalac Posudje.
THE BEST SERBIAN TRADE MARKS
The highest municipal recognition to Dragoljub Vukadinovic, President of Metalac board.
GOLD MEDAL TAKOVSKI USTANAK
For the occasion of 150 years of the Serbian Chamber of Commerce Metalac was among 25 awarded.
2005
Committee of the National Organization for Quality (JUSK) awarded METALAC with the.
GOLD MEDAL FOR QUALITY
First place in the category of household items and third place in general category.
THE BEST SERBIAN TRADE MARKS
Award by the Chamber of Commerce of Voivodina for development and application of industrial design.
PLAQUE FOR DEVELOPMENT AND APPLICATION OF INDUSTRIAL DESIGN
Metalac Jsc. EXPORTER OF THE YEAR - CATEGORY : WINNING NEW MARKETS recognition from the SIEPA.
EXPORTER OF THE YEAR - CATEGORY : WINNING NEW MARKETS
Third place in the BEST CORPORATE BRAND contest for the Best from Serbia campaign.
BEST CORPORATE BRAND
Metalac Jsc. - awarded for high professional standards and unique business culture.
2004
BUSINESS PARTNER IN 2004
2003
Award to Dragoljub Vukadinovic, managing director of the Metalac Jsc. voted by the Club of Business Reporters.
BUSINESSMAN OF THE YEAR
Award to Dragoljub Vukadinovic, managing director of the Metalac Jsc. from the Yugoslav Chamber of Commerce.
MANAGER OF THE YEAR
2001 83
MGM REPORT
2012
MGM REPORT
2012
MOŽEŠ DA RAČUNAŠ YOU CAN COUNT ON
84
85
MGM REPORT
2012
Izdavač / Publisher_ METALAC a.d., Gornji Milanovac, Za izdavača / For Publisher_ Dragoljub Vukadinović, Redakcioni odbor / Drafting Committee_ Petrašin Jakovljević, Radmila Todosijević, Nadica Vujić-Mitrović, Dizajn i priprema / Design and prepress_ Dizajn studio Metalac, Fotografije / Photo_ Arhiva Metalac a.d., Prevod / Translation_ Metpor, Beograd, Štampa / Printing_ Stojkov, Novi Sad, Tiraž / Circulation_ 1000, Gornji Milanovac, April 2013.
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METALAC a.d., Kneza Aleksandra 212, 32300 Gornji Milanovac, Srbija, 032 770 300, metalac@metalac.com, www.metalac.com
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