Corporate ServicesFunctionInformation services sectorFor the Information Services Sector, 2007 was primarilythe year of SAP system stabilisation, and the upgrade ofthe process and organisational prerequisites for SAPsupport of higher quality. Also to be pointed out is thesuccessful implementation of the SAP CompetenceCentre which provides for high-quality support to theSAP system.The improvement of INA, d.d.’s information systemcontinued with the further development of theinformation systems of refineries and petrol stations.Further improvements were also made in IT infrastructure,standardisation of IT operations and information security(in that regard, we mention the ISOP2- InformationSecurity Outsourcing Project).We should also highlight the achievements of theinformation production system in refineries. At the SisakOil Refinery, sections of the application (monitoring thesituation in tanks - reserves, calculation of consumptionof energy generating products, monitoring dailyproduction, calculation and analysis of monthlyproduction, monitoring consumption of chemicals andadditives) were put into functioning pursuant to the plan.The Information Services Sector also cooperates inthe OptINA project (optimisation of costs). We wish topoint out the conclusion of new contracts, changes oftariff systems and optimisation of use of mobiletelephony, which in the end resulted in savings accordingto the plans.The support for daughter companies and associatecompanies was expanded, and besides Maziva - Zagrebd.o.o., it now covers INAgip d.o.o.. Preparations forprovision of support to SINACO d.o.o. and ED-INA d.o.o. in2008 were carried out.Procurement sectorThe Procurement Sector successfully achieved significantreduction of contracted values in 2007 in comparisonwith the offered values in the negotiating procedure,thus ensuring average savings of 3%.The Act on Public Procurement was applied only toprocurement for meeting the needs of the Oil and GasExploration and Production Division, while other parts ofINA, d.d. were not subject to that procedure.Moreover, we must point out the development ofnegotiating skills of the Procurement Sector’s staff, asone of the key elements in the competence developmentproject (Capability Building) led by McKinsey Consulting.We also wish to point out success of the OptINA projectin the area of standardisation of key needs on thecorporative level, as well as the significantly highernumber of concluded frame agreements.All procurement processes proceed via the SAP system,and the Sector fully manages the overall procurement ofnon-HR material.Storage & inventorymanagement sectorOver 2007, the project of integrating non-HC storagebusiness was successfully finalised, and all activitiesreferring to non-HC inventories - storing, management,disposal of excess stocks… --- were integrated into theStorage and Inventory Management Sector.These 11 warehouse locations, which were formerlymanaged centrally, are spread across the Republic ofCroatia. Furthermore, the integration will provide fortransparency of costs and create the foundations forfurther optimisation and rationalisation.50 Business activities
All business processes of the Sector are supported bythe SAP system modules for storing and managementof inventories. Along with the implementation of theSAP system, the Sector has developed the activities onmanagement and control of inventories on the corporativelevel. Apart from the successfully implementedintegration, we point out that non-HC inventories werereduced by 27.52% in 2007 in comparison with inventorieson January 1st 2007, at the same time without recordedincidents conditioned by shortage of stock.Maintenance managementsectorIn 2007, there were no major planned overhauls.Business processes were supported by SAP system modules(PS, PM and BW module and application of CAPEX workorders through SAP for maintenance investment projects).A long-term (three-year) contract with the STSI dependentcompany was successfully concluded for maintenanceactivities, achieving significant savings on the annual levelof approximately HRK 7 million.Facility management sectorIn 2007, the Facility Management Sector continued therationalisation programmes of business and taking overof activities not functioning as operating activities fromother parts of INA, d.d. In that connection, we point out thesuccessful implementation of the following projects in 2007:- The project on integration of activities that are not inthe function of Refining and Marketing operatingactivities- Conclusion of the Service Level Agreement(SLA agreement) in the area of facilitymaintenance management- The project on rationalisation of car rental costs viaOptINA Project- The ECR Project (electronic central records) whichconnected input accounts into INA, d.d. with theSAP system.In addition to this, the Facility Management Sectorcontinues its work in the field of countless projectsregarding optimisation of business activities and takingover activities which do not function as operations of otherparts of INA d.dAnnual report 200751
- Page 3: Table of contentsIntroduction 5INA,
- Page 7 and 8: Annual report 2007
- Page 9 and 10: Tomislav DragiËeviÊ, President of
- Page 11 and 12: Josip PetroviÊ, Member of the Boar
- Page 13 and 14: Scheme of macro-organizational stru
- Page 15 and 16: Higher output in INA’srefineriesI
- Page 17: Poslovno izvjeπÊeAnnual report 20
- Page 20 and 21: Vision, Mission and CoreValuesINA i
- Page 22 and 23: Reduction of sulphur dioxide and hy
- Page 24 and 25: Healthcare, as one of the prioritie
- Page 26 and 27: Intellectual propertymanagementToda
- Page 29 and 30: Business Segments
- Page 31 and 32: Mazrur-1STConstruction of the Mazru
- Page 33 and 34: Exploration in CroatiaPannonian bas
- Page 35 and 36: Investments in exploration and deve
- Page 37 and 38: Oil and gas reserves as of 31 Decem
- Page 39 and 40: As part of safety and environmental
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- Page 43 and 44: Over the previous year, the strong
- Page 45 and 46: At the Rijeka Oil Refinery, a contr
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- Page 49: Strateπko pertnerstvoIn 2006 two n
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- Page 57 and 58: Financial results
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- Page 61 and 62: Refineries and MarketingSegments IF
- Page 63 and 64: Business environmentThe following f
- Page 65 and 66: (“price cap” limitation) also h
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- Page 71 and 72: ContentsResponsibility for the Fina
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- Page 75 and 76: OpinionIn our opinion, the financia
- Page 77 and 78: Notes 2007 2006Investment revenue 6
- Page 79 and 80: INA Group ConsolidatedBalance Sheet
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- Page 83 and 84: INA Group ConsolidatedStatement of
- Page 85 and 86: INA d.d. UnconsolidatedStatement of
- Page 87 and 88: INA Group ConsolidatedCash Flow Sta
- Page 89 and 90: Notes 2007 2006Cash flows from fina
- Page 91 and 92: In its session of 22 July 2005, the
- Page 93 and 94: Management Board from 5th May 2006d
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Deferred taxDeferred tax is recogni
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The effective interest method is a
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Furthermore, the time determined fo
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3. Sales revenueRevenue represents
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7. Finance costsINA GroupINA d.d.20
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9. Earnings per shareINA Group2007
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) By asset typeINA GroupOil and gas
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) By asset typeINA d.d.Oil and gasp
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I) Oil and gas reservesThe ability
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13. Investments in subsidiariesBasi
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14. Investments in associates and j
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17. Available-for-sale assetsCompan
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19. Receivables from buyers, netINA
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22. Paid expenses of the future per
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25. Liabilities to suppliers, taxes
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Averageweightedinterest rateAverage
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was contracted with a 5-year expiry
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INA GroupINA d.d.2007 2006 2007 200
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o podjeli proizvodnje - UPP) on the
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The change of the present value of
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34. Retained earningsINA GroupRetai
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By business segmentsINA d.d.Researc
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By business segmentsINA GroupResear
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By business segmentsINA d.d.Researc
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By geographical areasINA d.d.Republ
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Income from sale of goodsand servic
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Income from the sale of products to
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ond, exploratory and confirmatory w
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39. Unforeseen obligationsInvestmen
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Goals of financial risk managementT
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was valid throughout the year. An i
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INA d.d. interest-free liabilities
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42. Approval of the financial state
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CROBENZ d.d. ZagrebRadniËka cesta