3 6 15 35 Editorial CEE Top 500 The Ranking - Economic Outlook Analysis CEE Top 500 RANKING August 2016 COFACE CEE TOP 500 COMPANIES THE COFACE PUBLICATIONS by Coface Central Europe he year 2015 brought a The CEE Top 500 ranks the 500 biggest Favorable business conditions extended good mix of conditions for companies in the region by turnover. into 2016. The forecast for the CEE region Central and Eastern Europe. These top players increased their turnover in 2016 is nearly on the same level as Average GDP growth for by 4.2% to nearly 593 billion EUR and 2015 with an estimated average growth the CEE region was 3.3% enlarged their staff by 0.5%. Overall 4.3% rate of 3.0%. A further improvement Tin 2015, after 2.6% in 2014. Economies of the total labor force in the region is in the labor market and growing benefited from rising domestic demand. employed by the companies of the CEE confidence will strengthen household This included both, growing private Top 500 which has a positive effect consumption as the main growth driver consumption, supported by declining on unemployment rates. The ongoing of the CEE economies. The contribution unemployment and growing wages, upward trend was also recorded by of investments will not be as high as and increasing investments in most the majority of the sectors in the CEE last year due to a slow start of new EU economies. Important support came Top 500. Twelve out of thirteen sectors co-financed projects weakening the from EU funds which CEE countries increased their turnover compared to the expansion of the construction sector were efficient users of in the final year previous year. Strong rises were achieved and various other associated industries. of validity of the ‘old’ EU budget. At the by textiles, leather & clothing on +14.8% On the external side CEE countries will same time, CEE countries remained active and automotive & transport on +10.3%. remain active exporters, although the exporters focusing on Eurozone enjoying The only sector to see a decrease in slowdown in global trade may hamper a GDP growth of 1.6% and looking for new its turnover was minerals, chemicals, their ambitions. markets. petroleum, plastics & pharma on -8.3%. ALL OTHER PUBLICATIONS ARE AVAILABLE ON http://www.cofacecentraleurope.com/News-Publications A WORD FROM THE EXECUTIVE MANAGER CENTRAL AND EASTERN EUROPE KATARZYNAKATARZYNA KOMPOWSKAKOMPOWSKA RANKING COFACE CEE TOP 500 COMPANIES 3 IN 2015, THE CEE REGION CONTINUES TO GROW AND CONFIRMS ITS HIGH POTENTIAL FOR BUSINESSES. I am pleased to welcome you to the CEE Top 500 This year, we are including the Top 10 companies ranking, our annual publication on the biggest of Russia and Ukraine in our Coface outlook. companies in our region. We have become a major source for businesses in CEE and have now Focusing on 2016, we see that EU funding will not published the analysis for the eighth year in a row. be as supportive as it was in 2015 as the new EU budget is used more gradually at its beginning. As This time, I´m glad to be able to affirm the such it will not contribute to growth as strongly optimistic picture which we saw last year. The as it did last year. Moreover, among existing year 2015 brought a good mix of conditions for external risks, such as the Chinese slowdown and the CEE region, which is reflected in our study its impact on Germany and the Eurozone as the of the Top 500 companies. CEE economies main trading partner of the CEE region, there benefited from an improving and favorable could be consequences of Brexit. These include economic environment. Exports profited from not only weaker exports to the UK but also an a slow but gradual recovery of its main trading overall decrease in sentiment across the whole of destination - the Eurozone, especially Germany, Europe. while a strong contribution came from domestic demand. Companies reported solid economic In order to explore opportunities in the region, it is growth rates as well as more structured growth essential for companies to monitor developments last year. Nearly 70% of companies in the ranking in CEE on a regular basis. Ongoing analysis as well are enjoying a rise in turnover compared to 62% as market and economic expertise are therefore of the previous year. important conditions. The knowledge of our analysts and economists form the foundation of The positive picture is confirmed by the our studies, analysis and country assessments and acceleration in the average regional GDP growth is built on 70 years of experience. Today, Coface rate from 2.6% in 2014 to 3.3% in 2015, with the has the biggest geographical footprint in Central Czech Republic taking the lead with an increase and Eastern Europe, and is helping companies of 4.5%. Moreover, last year’s GDP result was in more than 200 countries around the world the highest since the post-crisis level of 2009. to mitigate their risk. We are also the number 1 The number of insolvencies decreased over the provider of company information in CEE. course of last year in nine out of 13 countries and the GDP-weighted regional insolvency average We invite you to read our latest study and to stay was -14%. up to date on the Top 500 companies in Central and Eastern Europe. KEY FIGURES OF THIS YEAR’S RANKING 593 billion EUR turnover in 2015 1 111 companies minerals, chemicals, petrole- um & pharmaceuticals 218 companies moved up the ranking 0.04 % in Poland lowest insolvency rate 1 167 companies from Poland - No. 1 4.05 % in Romania highest insolvency rate 46,531 companies insolvencies declared in CEE RANKING COFACE CEE TOP 500 COMPANIES 5 COFACE YOUR BUSINESS PARTNER IN CEE 80 million companies in our worldwide database 89 % client recommendation 739 employees in Central & Eastern Europe 1989 27 years of experience in CEE www 15 million companies CEE-reports online available NO1 provider 1 of company information in CEE CEE TOP 500 ANALYSIS Solid growth in an exceptional favorable environment abounded for the largest businesses in Central and Eastern Europe in 2015. However, this wasn’t the case for every company. Some of the largest struggled the most. 2015 - A BOOMING CEE ECONOMY recession were conflict-ridden Ukraine (-9.9%) and sanctioned Russia (-3.7%). Both countries are 2015 was a good year for Central and Eastern out of the scope of the CEE Top 500 company Europe. The economy was booming and so were ranking, but are covered in the final outlook many of the 500 largest companies. All countries (p. 35 onwards). The Baltic countries were the saw an increase in GDP ranging from a tender only ones (with exception of Croatia) where 0.7% in Serbia to a strong 4.5% in the Czech the largest companies experienced a decline Republic. Average GDP growth accelerated in turnover in 2015 ranging from -1.5% in Latvia from 2.6% in 2014 to 3.3% in 2015 which was the to -3.0% in Estonia resulting from the embargo highest since the post-crisis level of 2009. implemented by Russia. For the majority of countries, strengthened ONE NEWCOMER IN THE TOP 10 domestic demand was the main growth driver thanks to a booming economy that led to lower The number one hasn’t changed since the first unemployment, rising wages, low inflation or edition of the Coface CEE TOP 500 ranking: even deflation in most countries. These good Polish oil and gas giant PKN Orlen defends its economic conditions were based on a number leading position, but faced some very challenging of developments. EU funding exceptionally times. Turnover decreased by -17.3% compared boosted investments in 2015. It was the final to 2014. It was previously down by -6.2% in 2014 year of access to the previous EU budget. As and by -5.2% in 2013. CEE economies are highly exposed to exports and the Eurozone is the premier foreign trading The shining new star this year is General Electric partner, its recovery - although weak - supported Hungary which soared in the ranking from 13th CEE exporters. Eurozone growth rose from 0.9% place right into the Top 3, where it finished as the in 2014 to 1.6% in 2015. Insolvency figures clearly new number 2. The company almost quadrupled supported the upswing: The GDP-weighted its revenues following the integration of Alstom’s average of insolvencies dropped by 14% in 2015. power generation and grid in 2015. The CEE Top 500 reflect the economic growth MOL Hungary is the second big loser. Both oil & seen in the countries covered1 in the ranking: gas giants in the Top 10 reported huge losses in Overall turnover rose by +4.2% to 593 billion turnover; in the case of MOL revenues decreased EUR and net profits soared to 26.9 billion EUR by -13.9%. It therefore moved down from 2nd to (+73.7%). Nevertheless, companies are still 3rd place. Another company from this sector was cautious when it comes to hiring. 2,168,852 kicked out of the exclusive Top 10 club: Due to people worked at the largest companies in CEE a 20%-decrease in turnover, Polish Grupa Lotos (+10,335) which corresponds to a very slight lost its 8th place from 2014 to land in 11th. increaseof 0.5%. The only two countries in 1 The study includes the following countries: Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Serbia, Slovakia, Slovenia RANKING COFACE CEE TOP 500 COMPANIES 7 For all other Top 10 companies, 2015 was a much by 161 places (from 337 in 2014 to 176 in 2015).