Annual report 2009 - Raiffeisen Leasing

Contents
Contents
Introductory Address by the Management
4
Raiffeisen - Leasing International GmbH
5
Business Profile
6
Management Report
7
General Assembly
9
Organizational Chart
10
Financial Statements
Independent Auditors‘ Report
11
12
13
Raiffeisen Leasing's Branches in Serbia
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Photo by Nebojπa BabiÊ
Statement of Comprehensive Income for the Year Ended 31 December 2009
Statement of Financial Position as at 31 December 2009
www.raiffeisen-leasing.rs
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Introductory Address by the Management
Introductory Address by the
Management
Dear Clients and Partners of Raiffeisen Leasing d.o.o,
On behalf of the Management of Raiffeisen Leasing d.o.o. we inform you with great pleasure that
even though the year 2009 will be remembered as a challenging year dominated by the effects of
the economic crisis for our company it was another successful year in which we were able to
further strengthen our market position.
As a member of Raiffeisen Banking Group, Raiffeisen Leasing d.o.o. has always applied principle
of quality instead of quantity and strict risk policy, which proves to be the right orientation
showing its great importance in difficult times like these.
During 2009, Raiffeisen Leasing d.o.o. was mainly focused on strengthening long-term
partnership with clients of Raiffeisen Banking Group by providing them with a support they
needed in their business. One of our major goals was also keeping high level of portfolio quality
and minimizing number of problematic cases and repossessed assets on stock.
Considering the changed economic environment, we conducted necessary restructuring within
our company in order to fully comply with the changes in the market and improve our efficiency
in such new circumstances.
Notwithstanding the very challenging business circumstances, Raiffeisen Leasing d.o.o. maintained its top
ranking as one of the leading leasing companies with a network in 6 towns in the country, besides the
Head Office in Belgrade.
Our results achieved in 2009, as well as our experience, strong capital base and quality portfolio
represent a guarantee that we will remain a secure and reliable partner to our clients and dealers in the
forthcoming period as well, even though the year 2010 is still not expected to be much easier compared
to 2009.
Thanks to our high professional standards and expertise of the Group which has proved to be strong even
in the times of crisis, Raiffeisen Leasing d.o.o. will be in position to actively support the business and
investment plans of its clients, by offering financing of vehicles and equipment in 2010 as well. Our aim is
to further develop long-lasting cooperation with our clients, and therefore we are ready to proactively
respond to their needs by developing our products and services.
We would like to use this opportunity to thank our customers and business partners for the excellent
cooperation in 2009 and for their confidence in us. We are also especially grateful to our employees,
whose commitment, professionalism and efforts made this year successful, expressing our deep conviction
that Raiffeisen Leasing d.o.o. team will keep its strong position in the market in 2010 as well.
Ralph Zeitlberger
Managing Director
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www.raiffeisen-leasing.rs
Ana RuæiÊ
Executive Director
Raiffeisen - Leasing International GmbH
Raiffeisen - Leasing
International GmbH
Leasing is generally considered to be the most favourable alternative for financing investments in
Central and Eastern Europe, primarily due to better collateralization especially for small and medium
sized companies. Advantages in tax and accounting add to this business segment's attractiveness.
Raiffeisen International's leasing units in Central and Eastern Europe are steered by the sub - group's
holding company Raiffeisen - Leasing International GmbH (RLI), located in Vienna, which is 75% owned
by Raiffeisen International Bank Holding AG and 25% by Raiffeisen - Leasing GmbH, Vienna.
The Raiffeisen - Leasing International network covers 17 countries in Central and Eastern Europe.
Nearly 1400 people have been working for the Raiffeisen - Leasing International Group at year - end
2009. New business with 851 million euros in 2009 decreased compared to the previous year
significantly due to the economic crisis.
Raiffeisen - Leasing International's balance sheet total stays at 4.605 million euros at the end of 2009.
www.raiffeisen-leasing.rs
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Business Profile
Business Profile
Raiffeisen Leasing d.o.o. has been established for the purpose of enhancing and promoting leasing activities
in Serbia, and at the same time extending the range of services of Raiffeisen Banking Group in this market.
Raiffeisen Leasing d.o.o. was founded on February 10, 2003 with its headquarters in Belgrade, whereby the
scope of services offered by Raiffeisen Group in the Serbian market has been expanded, both for legal
entities and for private individuals. It started operating in April of the same year.
The shareholders of Raiffeisen Leasing d.o.o. are:
• Raiffeisen-Leasing International GmbH with 50%
• Raiffeisen banka a.d. with 50%
The shareholders of Raiffeisen-Leasing International GmbH are Raiffeisen Leasing Austria with 25% and
Raiffeisen International with 75%.
Raiffeisen Leasing d.o.o. is governed by the General Assembly on behalf of its shareholders. The General
Assembly meets at least three times a year, deciding on strategic issues and directing the business activities of
the Company.
By fostering high professional standards set by its founders, Raiffeisen Leasing d.o.o. provides its clients with
superior quality products and services, as well as complete information regarding the structure and simplicity
of all transactions involved.
The basic products of Raiffeisen Leasing d.o.o. are vehicle leasing and equipment leasing.
Raiffeisen Leasing d.o.o. is located in Belgrade, operating via six other branches, which are situated in
Subotica, Novi Sad, ©abac, Kragujevac, »aËak and Niπ.
At the end of 2009, Raiffeisen Leasing d.o.o. had 81 employees, providing their clients with prompt and
highly competent services.
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www.raiffeisen-leasing.rs
Management Report
Management Report
The company Raiffeisen Leasing d.o.o. maintained its high ranking in the Serbian market during 2009 as
well and contributed to keeping high quality level of Raiffeisen Banking Group services by constantly
improving its products and services in order to meet clients' needs, despite aggravated business
circumstances in the market.
In the course of 2009, Raiffeisen Leasing d.o.o. has remained at the very top of the leasing industry in
Serbia, keeping stable market share of 15.07%.
Despite the actual financial crisis, the company Raiffeisen Leasing d.o.o. has in 2009 also proven its
permanent commitment to developing long-term partnerships with clients of Raiffeisen Banking Group, as
well as improving cooperation with the network of the most important dealers.
In accordance with changed business environment in the market and also having in mind the restrictive
policy of companies and the limited access to new investments in 2009, Raiffeisen Leasing d.o.o. was
more oriented towards financing of vehicles, less to financing of equipment. The new business reached the
amount of 16.15 million euros, of which vehicle financing accounts for 14.31 million euros and equipment
1.84 million euros.
During 2009 Raiffeisen Leasing d.o.o. was mainly focused
on collection and maintaining of a high-quality portfolio.
The financial crisis spillover into the real economy had, as a
result, increased number of returned, i.e. repossessed
objects of leasing. Aiming to solve this problem, Raiffeisen
Leasing d.o.o. successfully implemented remarketing and
reselling process of returned and repossessed leasing objects
group-wide.
Also, by using the Raiffeisen Group experience and in
cooperation with Raiffeisen banka a.d., the system of
ongoing follow-up and communication with clients was
implemented in order to provide timely identification of
potential problems considering increasingly difficult
collection process. This created the possibility of prevention
and timely elimination of undesired effects.
By this approach, Raiffeisen Leasing d.o.o. succeeded in
maintaining the stability and quality of its portfolio of
115.65 million euros, while at the same time keeping
problematic business arrangements at the lowest level.
In order to help clients’ business in a more difficult environment, Raiffeisen Leasing d.o.o. offered the
possibility of reprogramming the existing obligations and adjusting the collection plan to the new
circumstances in the market, thus strengthening cooperation with clients even more.
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Management Report
Strongly believing in good prospects for the Serbian market,
Raiffeisen Leasing d.o.o. has, apart from the corporate
segment, been focused on financing of SE&M sector. In
order to promote and encourage development of this sector,
which is the backbone of each economy, Raiffeisen Leasing
d.o.o. signed a loan agreement worth 20 million euros with
the European Investment Bank (EIB), specially provided to
support this client segment.
In 2009 Raiffeisen Leasing d.o.o. has been constantly
working on improvement of business procedures in order to
simplify as much as possible its processes with a strong focus
on efficiency and availability. A high level of clients'
satisfaction was documented in a survey of service quality
conducted for all clients' segments at the end of the year.
As an ambitious and professional company, Raiffeisen Leasing also recognizes the necessity of being a
socially responsible company which contributes to Serbian society. Bearing this in mind, Raiffeisen Leasing
supported the exhibition of modern art of Lincoln Centre from New York which was presented at the
National Bank Gallery during December 2009.
Considering the overall business environment, further development and potential of the leasing market in
Serbia, Raiffeisen Leasing d.o.o. has set the following priorities for 2010: increasing the new business
volume, maintaining the quality portfolio structure , focusing on the further improvement of cooperation
with clients and the dealer network, by applying top-quality professional standards and constant
improvement of its own products, as well as active participation in the further development and qualitative
improvement of legal framework for leasing business in Serbia.
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www.raiffeisen-leasing.rs
General Assembly
General Assembly
The General Assembly currently consists of three members:
Mr. Oliver Roegl, Chairman of the Managing Board of Raiffeisen banka a.d.
Mr. Goran KesiÊ, Member of the Managing Board of Raiffeisen banka a.d.
(left on February, 23, 2009)
Mr. Zoran PetroviÊ, Deputy Chairman of the Managing Board of Raiffeisen banka a.d.
(appointed on February, 23, 2009)
Mr. Dieter Scheidl, Managing Director of Raiffeisen - Leasing International GmbH
Powers and duties of the General Assembly are determined in the Company Law of the Republic of
Serbia and the Articles of Association of Raiffeisen Leasing d.o.o.
According to the Articles of Association and to the Company Law of the Republic of Serbia, the General
Assembly is the highest body of the company, which consists of the shareholders, or the persons
appointed by the shareholders to represent their interests.
According to the internal rules of the Raiffeisen Leasing d.o.o, the General Assembly holds its regular
meetings minimum three times a year and extraordinary meetings that can be held as many times as
necessary.
Well - structured composition of the General Assembly guarantees support of both RLI and local bank
and knowledge sharing within the Group.
www.raiffeisen-leasing.rs
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10
www.raiffeisen-leasing.rs
CS
Outlet Niπ
CS
CS
CS
Sales
Outlet ©abac
Sales
CS
CS
Outlet Kragujevac
Sales
Outlet »aËak
Sales
Sales
Outlet Subotica
Sales
Outlet Novi Sad
Outlet BGD 1 & 2
Multinational and Large
Corporate Companies Unit
SALES DEPARTMENT
Car Unit
Trucks &
Trailers Unit
Equipment
Unit
CUSTOMER SERVICES
DEPARTMENT
IT DEPARTMENT
Star means outsourced to Raiffeisen banka a.d.
Controlling Unit
Cash Management
& Funding Unit
Insurance Unit
Collection Unit
Accounting Unit
ACCOUNTING & CONTROLLING DEPARTMENT
Administration
Unit
CONTRACT ADMINISTRATION
DEPARTMENT
LEGAL UNIT
MANAGEMENT SUPPORT
& MARKETING DEPARTMENT
DEALER COOPERATION
DEPARTMENT
HR*
MANAGING DIRECTOR
PRODUCT DEVELOPMENT &
COORDINATION UNIT
EXECUTIVE DIRECTOR
GENERAL
ASSEMBLY
RISK MANAGEMENT
DEPARTMENT
Organizational Chart
Organizational Chart
Financial Statements
Statement of Comprehensive Income
For the Year Ended 31 December 2009
Prepared under IFRS
In thousands of RSD
2009
2008
Interest income
1,392,252
1,609,697
Interest expenses
(544,493)
(1,077,943)
Net interest income
847,759
531,754
Fee and commission expenses
(37,407)
(43,007)
Net fee and commission expenses
(37,407)
(43,007)
2,478
54,940
Net trading income
Other operating income
83,244
64,938
85,722
119,878
896,074
608,625
Net impairment loss on financial assets
(380,450)
(78,717)
Personnel expenses
(119,281)
(132,095)
(21,584)
(16,763)
(9,176)
(10,691)
(321,916)
(304,167)
43,667
66,192
Income tax expense
(29,048)
(10,851)
Profit for the period
14,619
55,341
-
-
14,619
55,341
Other income
Operating income
Operating lease expenses
Depreciation and amortisation
Other expenses
Profit before income tax
Other comprehensive income, net of income tax
Total comprehensive income for the period
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Financial Statements
Statement of Financial Position
as at 31 December 2009
Prepared under IFRS
In thousands of RSD
2009
2008
891,026
60,246
2,762,787
2,556,011
10,622,486
14,141,368
107
107
17,565
21,895
7,631
11,293
38,896
43,946
266,194
567,323
14,606,692
17,402,189
Deposits and borrowings from banks
7,406,224
10,094,409
Deposits and borrowings from customers
Assets
Cash and cash equivalents
Loans and advances to banks
Loans and advances to customers
Equity investments
Property and equipment
Intangible assets
Deferred tax assets
Other assets
Total assets
Liabilities
6,250,463
6,389,251
Provisions
38,481
23,191
Other liabilities
21,513
19,946
13,716,681
16,526,797
Share stakes
226,544
226,544
Retained earnings
663,467
648,848
Total liabilities
Equity
Total equity
TOTAL LIABILITIES AND EQUITY
Belgrade, 26 February 2010
For and on behalf of the Management
RAIFFEISEN LEASING D.O.O. BEOGRAD
Ralph Zeitlberger
Managing Director
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www.raiffeisen-leasing.rs
890,011
875,392
14,606,692
17,402,189
Financial Statements
www.raiffeisen-leasing.rs
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Raiffeisen Leasing's Branches in Serbia
Raiffeisen Leasing’s
Branches in Serbia
Beograd
Milutina MilankoviÊa 134a
Tel: (+381 11) 201 77 00
Fax: (+381 11) 313 00 81
Novi Sad
Bulevar osloboenja 56a
Tel: (+381 21) 488 01 39
Fax: (+381 21) 488 01 06
»aËak
Gradsko πetaliπte bb
Tel: (+381 32) 304 222
Fax: (+381 32) 304 226
Niπ
ObrenoviÊeva 35
Tel: (+381 18) 501 600
Fax: (+381 18) 501 610
Subotica
Trg slobode 5
Tel: (+381 24) 633 336
Fax: (+381 24) 558 054
Kragujevac
Save KovaËeviÊa 1
Tel: (+381 34) 308 343
Fax: (+381 34) 338 813
©abac
Masarikova 7
Tel: (+381 15) 361 260
Fax: (+381 15) 361 261
[email protected]
www.raiffeisen-leasing.rs
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www.raiffeisen-leasing.rs