Edition 2011 SOUTH EAST S EUROPE TOP 100 Published by ovina Herzeg ia and Bosn Strategic Partner va Moldo Albania edonia SEE TOP 100 Mac o enegr Mont vo so Slovenia Ko Serbia oatia Cr garia Bul Exclusive Content Partner Romania Partner 2011 SEE TOP 100 SEE in 2010 – a mixed picture In a year when economic activity and consumption levels in Southeast Europe (SEE) showed some signs of recovery, the performance indicators of the companies in our annual SEE TOP 100 ranking paint a mixed picture. The highlights of this year’s SEE TOP 100, which is the fourth edition of the ranking, include an in-depth look at oil production and consumption in SEE, the state of the pharmaceuticals market, the business of fuel retailers and the renewables versus nuclear energy debate and how it is playing out in the region. We have added a lot of new content, including profiles of some of the region’s most high-powered executives that offer a behind-the-scenes look at 2010’s top corporate success stories. This year’s edition also features an exciting new chapter dedicated to sustainable development, an area that will come into an even sharper focus as concerns mount about global overpopulation and resource depletion. Relevant issues are explored in a number of interviews and exclusive analyses. We also talk to the CEOs of the biggest stock exchanges in SEE about market challenges and opportunities. Our strategic partner, A.T. Kearney, provides an insightful analysis of M&A Editor-in-chief activity in the region while the current edition’s exclusive content partners from Euromonitor International offer thought-provoking profiles of the 11 SEE economies. Disclaimer: SeeNews is not liable for the content of the published advertisements. Full liability rests with the advertisers. Editor-in-chief: Raina Lazarova •Senior editors: Valentina Gerasimova, Georgi Georgiev • Editors: Nevena Krasteva, Doinita Dolapchieva • Analysts: Ilko Mitkovski, Valentin Stamov, Tsvetan Ivanov • Reporters: Dessislava Dimitrova, Iliana-Carmen Ionescu, Ina Ignatova, Iskra Pavlova, Kire Nedelkovski, Kristina Belkina, Sabina Kotova, Svetozara Davidkova, Valentina Dimitrievska • Marketing & sales: Adriana Popova, Vladislav Ognyanov, Antonia Petkova, Marieta Zhekova, Penka Angelova • Design & prepress: Stanislav Botev • Print: Alliance Print SeeNews, SEE TOP 100 and their logos are registered trademarks of AII Data Processing Ltd. All rights reserved. Re-publication or re-distribution of SeeNews content, including by framing, is strictly prohibited without the prior written consent of SeeNews. Contact us: 64 Kiril i Metodii Str, 1202 Sofia, Bulgaria, tel: +359 2 8012 609/610, email: [email protected] SEE TOP 100 Table of contents Chapter 1 p. 3 SEE TOP 100 Companies Chapter 2 p. 16 SEE TOP 100 Banks Chapter 3 p. 26 SEE TOP 100 Insurers Chapter 4 p. 32 SEE TOP 100 per Capita Chapter 5 p. 34 SEE TOP Industries Chapter 6 p. 49 SEE Sustainability Chapter 7 p. 74 SEE Corporate Management Chapter 8 p. 96 SEE Country Profiles 2 Sponsored by SEE TOP 100 Companies Pushing off the bottom Lowered costs, prudent spending key for the success of SEE companies By Raina Lazarova The telltale signs of an economic recovery of the SEE economies. According in SEE, reporting an annual growth of recovery in Southeast Europe (SEE) were to the International Monetary Fund, five 23.14% in total revenue to 3.291 billion visible in both the top- and bottom-lines out of the seven countries represented in euro in 2010. The company turned to a of the companies in the SEE TOP 100 SEE TOP 100 recorded a positive annual net profit of 239.3 million euro in 2010 ranking. The total revenue of the biggest growth in gross domestic product (GDP) from a net loss of 86.4 million euro a year companies in SEE increased by 15% year- in 2010 with Croatia and Romania as earlier, mainly as a result of increased on-year to 87.4 billion euro in 2010 after the only economies to experience a hydrocarbon production from North shrinking by 14% in 2009. The combined contraction. GDP growth rates were Adriatic offshore fields and Syria. net profit of the top 100 firms jumped much more modest, between 0.2% and by 105% on the year to 2.3 billion euro 1.8%, compared to the results of the Bulgaria’s LUKOIL Neftochim Burgas in 2010, driven by the pursuit of cost- SEE TOP 100 companies. In contrast, in was in a good position to grow its revenue efficiency and the cautious spending 2009 the GDP of all countries displayed by 29% year-on-year to 2.794 billion euro mood among companies of all sectors. negative growth values. in 2010, slashing its net loss by one- third to 61.6 million euro. Bulgaria’s No change at the top Despite the positive signs, the only refinery covers about 80% of the performance of SEE businesses in 2010 The first five companies in the SEE domestic motor fuel demand and exports was far from their pre-crisis levels. In TOP 100 ranking retained their leading about a third of its output, making it one 2008 the companies in the SEE TOP positions from last year with Romanian of the country’s major exporters. 100 ranking boasted a combined revenue oil and gas group OMV Petrom of 95.7 billion euro and a net profit of remaining the unchallenged number Renault-owned Dacia kept its fourth 3.048 billion euro. A lot of businesses fell one, followed by Croatian oil and position in the SEE TOP 100 ranking into a slump in 2009 in the wake of the gas group INA, Bulgarian oil refinery with a total revenue of 2.709 billion global economic meltdown. LUKOIL Neftochim Burgas, Romania euro in 2010, up by 27.81% year-on- car manufacturer Dacia and Slovenian year, on the back of a 12% growth in Combined revenue/net profit of the SEE energy company Petrol. worldwide car sales. Net profit came in TOP 100 companies at 70 million euro. Outside Romania, OMV Petrom ended the year with a Dacia has production units in seven 100 000 Revenue Net profit 10 000 total revenue of 3.627 billion euro, up countries, including Morocco, Russia by 8.5% year-on-year. Net profit came in and Colombia. 80 000 8 000 at 420 million euro, up by almost 30% 60 000 6 000 on the year. OMV Petrom has said this Slovenia’s Petrol took fifth place with a 40 000 4 000 result was due to favourable crude oil total revenue of 2.482 billion euro, up by prices and the completion of a series of nearly 20%. The group sold 2.35 million 20 000 2 000 strategic projects. OMV Petrom, in which tonnes of oil products in 2010, up 5.0% in millions of euro in millions 0 0 the Romanian government still owns from the previous year. 2010 2009 2008 20.64% after recently failing to sell half of its stake, ended the first half of 2011 The sixth and seventh spots in SEE Eighty companies in the SEE TOP 100 with a consolidated growth in revenue TOP 100 went to Romania’s Rompetrol ranking recorded growth in total revenue of 23% year-on-year to 10.271 billion lei Rafinare, the oil refining unit of Dutch- in 2010 compared to 2009, while 74 of (2.426 billion euro) after benefiting from based Rompetrol Group, which climbed all entrants ended the year in the black increased production levels and resurgent two positions, and the Bulgarian unit versus 71 a year earlier. fuel and gas demand. of Hamburg-based copper producer Aurubis, which gained seven places. The improvement of the companies’ Croatia’s INA kept its second place in The copper smelter, based in Pirdop, financial health reflects the overall the ranking of the biggest companies in western Bulgaria, reported a total 3 SEE TOP 100 Companies revenue of 1.952 billion euro in 2010, sectors with 16 and 13 representatives, Newcomers club up by 43% from the previous year on respectively. The metals and food/ The new entries in the SEE TOP 100 the back of rising copper prices and drinks/tobacco industries had five ranking were altogether 16, including no improving demand. companies in SEE TOP 100 each, closely less than 11 companies from Romania. followed by the transportation and motor The average revenue growth of the Oil and gas holds a big lead vehicle sectors. newcomers was just over 80% year-on- Romanian presence spreads year and the biggest growth rates were Companies from 15 industries were registered by companies in the oil and represented in the SEE TOP 100 ranking Southeast Europe’s most populous gas sector, up to 250% in the case of for 2010, with the oil and gas sector country, Romania, not only continued Romania’s OMV Petrom Gas. unsurprisingly holding a significant to prevail in the SEE TOP 100 ranking lead with a collective revenue of 32.2 but also strengthened its presence in the billion euro, up by 25%, and a total of 2010 edition where it had 47 entrants, six 27 entrants, three more compared to last more than a year earlier. The combined Seventeen companies in SEE TOP year. The companies operating in the oil revenue of the largest companies in 100 advanced by five or more spots in and gas sector turned to a combined net Romania stood at 40 billion euro or the revenue ranking and 11 of them profit of 855.7 million euro last year from 46% of the total revenue of all SEE climbed by 10 or more positions in 2010 a combined loss of 156.3 million euro in TOP 100 companies.