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ANNUAL
REPORT
2020
Note: “The English version of the Annual
Report 2020 of Intereuropa Group
and parent company Intereuropa
d. d. constitutes a translation of the
original Slovenian version. Only
the Slovenian version is legally
binding.”
Contents
Annual
Report
of the Intereuropa Group
and parent company
Intereuropa d. d. for the
year 2020
PUBLISHER: Intereuropa, Global Logistics
Services, Ltd. Co., Koper
TEXT WRITTEN BY: Intereuropa, d. d., Koper
DESIGNED BY: AV Studio d. o. o., Velenje
TRANSLATOR: Amidas d. o. o., Ljubljana
PHOTOGRAFY: Foto Belvedere, Koper and
Intereuropa archive
Koper, April 2021
2 INTEREUROPA / ANNUAL REPORT / 2020
01 Introduction
1.1 Key operating indicators of the Intereuropa Group 6
1.2 Presentation of the Intereuropa Group 8
1.3 Letter from the President of the Management Board 12
1.4 Report of the Supervisory Board for 2020 14
1.5 Statement of responsibility of the Management Board 18
1.6 Significant events in 2020 19
1.7 Impact of COVID-19 on operations 20
1.8 Corporate governance statement 21
1.9 Statement regarding non-financial operations 36
1.10 Explanation in accordance with Article 545 of the ZGD-1 41
02 Business report
2.1 Development strategy of the Intereuropa Group 44
2.2 Implementation of plans in 2020 46
2.3 Objectives and business plans for 2021 47
2.4 Economic conditions in 2020 and forecasts for 2021 48
2.5 Marketing and sales 51
2.6 Analysis of operations 59
2.7 Shares and ownership structure 72
2.8 Risk management 77
2.9 Development and investments 79
2.10 Divestment of commercially obsolete assets 81
03 Sustainable development
3.1 HR issues 84
3.2 Environmental matters and energy-efficiency 93
3.3 Social responsibility 95
3.4 Quality management system 96
3.5 Responsibility to suppliers 98
3.6 Communication with key publics 99
04 Financial report
4.1 Financial statements of the intereuropa group and Intereuropa, d. d. 103
4.2 Basis for preparation and notes to the financial statements 110
3INTEREUROPA / ANNUAL REPORT / 2020
01
Introduction
01 INTRODUCTION
1.1 KEY OPERATING INDICATORS OF THE INTEREUROPA GROUP
The year 2020 will go down in history as the year of the outbreak of the coronavirus SARS-Cov-2 pandemic (hereinafter:
COVID-19), which brought signiﬁcant changes to the economic environment. The pandemic has had a signiﬁcant effect
on the operations of the Intereuropa Group. Despite additional measures on the sales side, the containment measures of
the countries in which the Group operates made it impossible to avoid a decline in sales. Although operating conditions
were extremely adverse on all markets, the Group ensured the continuous provision of logistics support to customers
along the entire supply chain, both during the ﬁrst and second wave of the epidemic, while implementing the measures
to preserve the health of employees.
The Intereuropa Group generated sales revenue of EUR 150.7 million in 2020, which was down by 6% on the sales
revenue in 2019. Cash ﬂows from operating activities (hereinafter: EBITDA) were down by 12% on the previous year and
stood at EUR 12.3 million. The Group’s net debt was down by EUR 10.0 million to stand at EUR 44.4 million at the end of
2020, resulting in an EBITDA ratio of 3.6.
TABLE 1: KEY OPERATING INDICATORS OF THE INTEREUROPA GROUP (IN EUR THOUSAND)
2017 2018 2019 2020
Index
2020/2019
Sales revenue 149,889 160,382 160,353 150,725 94
EBITDA
1
12,739 12,397 13,971 12,298 88
Operating profit (EBIT) 311 6,064 7,524 5,764 77
Profit or loss from ordinary operations -2,028 4,028 6,442 4,563 71
Net profit or loss -1,979 4,408 4,197 3,568 85
Value added
1
39,911 41,247 42,905 41,423 97
Net earnings per ordinary share of Intereuropa, d. d.
(in EUR)
2
0.01 0.15 0.12 0.08 67
Investments in property, plant and equipment, and
intangible assets
2,690 5,374 2,889 2,105 73
1
Alternative performance measure (APM), deﬁned in the section ‘Alternative performance measures’ in Table 23 on page 70.
2
Earnings (loss) per ordinary share = earnings (loss) of the parent company / (number of ordinary shares – number of treasury shares).
6
INTEREUROPA / INTRODUCTION / 2020
FIGURE 1: CHANGES IN THE SALES REVENUE AND EBITDA OF THE GROUP IN THE PERIOD 2017 TO 2020
170
150
130
110
90
70
50
15
14
13
12
11
10
9
8
7
6
5
SALES REVENUE (in EUR million)
EBITDA (in EUR million)
2017
Sales revenue
EBITDA
1
2018 2019 2020
1
Alternative performance measure (APM), deﬁned in the section ‘Alternative performance measures’ in Table 23 on page 70.
TABLE 2: STATEMENT OF FINANCIAL POSITION OF THE GROUP (IN EUR THOUSAND)
2017 2018 2019 2020
Index
2020/2019
Total assets 229,672 232,927 223,351 220,444 99
Non-current assets 188,267 182,978 180,747 174,484 97
Current assets 41,405 49,949 42,604 45,960 108
Equity 117,049 120,229 122,358 124,850 102
Financial and operating liabilities
1
109,297 110,251 98,195 92,724 94
1
Alternative performance measure (APM), deﬁned in the section ‘Alternative performance measures’ in Table 23 on page 70.
FIGURE 2: CHANGES IN THE ASSETS AND FINANCIAL LIABILITIES OF THE GROUP IN THE PERIOD 2017 TO 2020
300
250
200
150
100
50
0
in EUR million
Assets
Financial liabilities
2017 2018 2019 2020
Financial liabilities were down by EUR 3.1 million in 2020, and accounted for 27% of total equity and liabilities at the end of
the year.
01 / INTRODUCTION
7
INTEREUROPA / INTRODUCTION / 2020
TABLE 3: PERFORMANCE INDICATORS OF THE GROUP
2017 2018 2019 2020
Index
2020/2019
Net return on equity1 -1.6% 3.8% 3.5% 2.9% 83
Net return on assets1 -0.8% 1.9% 1.8% 1.6% 87
Productivity (in EUR thousand)1 112.83 124.72 124.06 116.21 94
Net return on revenue1 -1.3% 2.7% 2.6% 2.3% 92
1
Alternative performance measure (APM), deﬁned in the section ‘Alternative performance measures’ in Table 23 on page 70.
TABLE 4: AVERAGE NUMBER OF EMPLOYEES (BASED ON HOURS WORKED)
2017 2018 2019 2020
Index
2020/2019
No. of Group employees 1,328 1,286 1,293 1,297 100
No. of employees at the parent company 577 566 582 572 98
No. of employees at subsidiaries 751 720 711 725 102
1.2 PRESENTATION OF THE INTEREUROPA GROUP
1.2.1 PRESENTATION OF ACTIVITIES
The Intereuropa Group is the leading provider of comprehensive logistics solutions in the Western Balkans. A full range of
services is provided through the following three key business lines:
• the land transport segment comprising groupage, domestic transport, road transport, railway freight and customs clearance
services;
• the logistics solutions segment comprising the warehousing and distribution products; and
• the intercontinental transport segment comprising sea freight, car logistics, shipping agency services and air freight.
The Intereuropa Group also provides additional services that include the leasing of business premises, parking services at
customs terminals, trade fair logistics and insurance brokerage services.
8
INTEREUROPA / INTRODUCTION / 2020
1.2.2 BASIC DATA AS AT 31 DECEMBER 2020
TABLE 5: PARENT COMPANY
Abbreviated name Intereuropa, d. d.
Country of the parent company Slovenia
Registered office of the parent
company
Vojkovo nabrežje 32, 6000 Koper
Contact information
tel.: +386 5 664 1000
e-mail: info@intereuropa.si
web: http://www.intereuropa.si
Registration no. 5001684
Tax no. 56405006
Entry in the companies register Registered with the Koper District Court, entry no. 1/00212/00
Share capital of the Company EUR 27,488,803
No. of issued shares
27,488,803 no-par-value shares, of which 16,830,838 ordinary shares (IEKG) and 10,657,965
preference shares (IEKN)
Share listing IEKG shares are listed on the prime market of the Ljubljana Stock Exchange.
Management Board
Marko Cegnar, President of the Management Board
Marko Rems, Vice-President of the Management Board
Supervisory Board
Boris Novak, MSc, Chairman of the Supervisory Board
Andrej Rihter, MSc, member of the Supervisory Board
Vinko Filipič, member of the Supervisory Board
Milan Perović, member of the Supervisory Board
Tjaša Benčina, member of the Supervisory Board
Zlatka Čretnik, member of the Supervisory Board
TABLE 6: INTEREUROPA GROUP
Number of employees 1,337
Total closed warehousing area* 215,000 m²
Total land area 1,604,000 m²
Membership in international organisations IATA, FONASBA, BIMCO, GS1 and FIATA
Membership in international logistics
networks
WCA, FETA and HCL and ALN
Quality certificates
The ISO 9001:2015 certificate is held by the following companies:
Intereuropa, d. d., Koper;
Intereuropa, logističke usluge, d. o. o., Zagreb and
Intereuropa RTC, d. d., Sarajevo
Important certificates:
The AEO (Authorised Economic Operator) certificate is held by the following
companies:
Intereuropa, d. d., Koper
Intereuropa, logističke usluge, d. o. o., Zagreb
AD Intereuropa logističke usluge, Belgrade (OPS)
Own branch network
Slovenia, Croatia, Montenegro, Bosnia and Herzegovina, Serbia, Kosovo, North
Macedonia, Albania and Ukraine
* Closed warehousing area, excluding tents and canopies, owned by Intereuropa
01 / INTRODUCTION
9
INTEREUROPA / INTRODUCTION / 2020
%
Intereuropa, d. d*
Interzav,
d. o. o.,
Koper
71,28%
TOV TEK ZTS,
Uzhgorod
89,93%
Interagent,
d. o. o.,
Koper
100,00%
TOV
Intereuropa-
Ukraina, Kiev
100,00%
Rail Cargo
Logistics,
železniška
špedicija,
d. o. o.
26,00%
AD
Intereuropa-
log. usluge
Belgrade
73,62%
Intereuropa
Global Logistics
Service Albania
shpk, Durres
100,00%
Intereuropa
Sajam,
d. o. o.,
Zagreb
51,00%
Intereuropa
Skopje, DOO
Skopje
99,56%
Intereuropa
RTC, d. d.
Sarajevo
95,77%
ZETATRANS
A.D.
Podgorica
69,27%
Intereuropa,
logističke
usluge, d. o. o.
Zagreb
99,96%
Intereuropa
Kosova L.L.C.,
Prishtina
90,00%
SLOVENIA
BOSNIA &
HERZEGOVINA
MONTENEGRO
CROATIA
KOSOVO
SERBIA
ALBANIA
UKRAINE
NORTH
MACEDONIA
Parent Company
Associate
Subsidiary
of ownership by the Parent Company
1.2.3 ORGANISATIONAL CHART OF THE INTEREUROPA GROUP AS AT 31 DECEMBER 2020
* The majority owner of Intereuropa, d. d. as at 31 December 2020 was Pošta Slovenije, d. o. o., which was the holder of 68.79% of ordinary shares and
100.00% of preference shares.
10
INTEREUROPA / INTRODUCTION / 2020
1.2.4 PRESENTATION OF INTEREUROPA GROUP COMPANIES
Companies as at
31 December
2020
Management
board/director as at
31 December 2020
Supervisory body
Chairman of the supervisory
body/representative of IE,
d. d. on the supervisory
body as at 31 December
2020
Land transport
Logistics solutions
Intercontinental transport
Other services
Distinctions
Intereuropa d. d.,
Koper
Marko Cegnar, President of
the Management Board
Marko Rems,
Vice-President of the
Management Board
Supervisory
board
Boris Novak, MSc, Chairman of the
Supervisory Board
Andrej Rihter, MSc, member of the
Supervisory Board
Vinko Filipič, member of the
Supervisory Board
Milan Perović, member of the
Supervisory Board
Tjaša Benčina, member of the
Supervisory Board
Zlatka Čretnik, member of the
Supervisory Board
• • • •
• Leading provider of comprehensive
logistics services in Slovenia;
• 119,600 m
2
of company-owned and
6,100 m
2
of leased warehousing area.*
Interagent d. o. o.,
Koper
Mihovil Rameša,
Director
Sole partner Intereuropa, d. d. as the sole partner •
• Company specialising in shipping
agency services
Interzav,
d. o. o., Koper
Mojca Žbontar,
Director
General
Meeting of
Shareholders
Representative of Intereuropa d. d.
by authorisation of the Management
Board
•
• Insurance transaction broker
Intereuropa,
logističke usluge,
d. o. o., Zagreb
Darko Skrnički, President of
the Management Board
Marija Štajduhar,
Member of the
Management Board
Supervisory
board
Marko Rems, Chairman of the
Supervisory Board
Matjaž Ujčič and Nikolina Jurković,
members
• • • •
• Leading provider of comprehensive
logistics services in Croatia;
• 48,300 m
2
of company-owned
Intereuropa Sajam,
d. o. o., Zagreb
Krešimir Lipovčić, Director
Supervisory
board
Marko Rems, Chairman of the
Supervisory Board
Vjekoslav Granić, member and
Matjaž Ujčič, member
• • •
• Company specialising in trade fair
logistics services.
• 100 m
2
of company-owned
warehousing area.
Intereuropa RTC
d. d. Sarajevo
Darko Skrnički,
Director
Supervisory
board
Marko Cegnar, Chairman of the
Supervisory Board
Miha Romih, MSc, member
Matjaž Ujčič, MSc, member
• • • •
• Leading provider of comprehensive
logistics services in Bosnia and
Herzegovina;
• 6,700 m2 of company-owned and
4,800 m2 of leased warehousing area.
AD Intereuropa-
logističke usluge
Beograd
Darko Skrnički, General
Manager
Dragana Kačar, Executive
Director
Board of
Directors
Marko Rems, Chairman of the Board
of Directors
Vesna Kos Tomažič, MSc, non-
executive member
Miloš Đurković, non-executive
member
• • •
• One the leading providers of
comprehensive logistics services in
Serbia;
• 21.100 m
2
of company-owned and
600 m
2
of leased warehousing area.
Intereuropa Kosova
L.L.C., Prishtina
Arben Mustafa,
Director
Andrej Kariš,
Director
General
Meeting of
Shareholders
Representative of Intereuropa d. d.
by authorisation of the Management
Board
• • • •
• Leading provider of comprehensive
logistics services in Kosovo;
• 1,000 m
2
of leased warehousing area.
Zetatrans A.D.
Podgorica
Tomaž Koder,
Executive Director
Board of
Directors
Matija Vojsk, MSc, Chairman of the
Board of Directors
Miha Romih, MSc, member
Matjaž Ujčič, MSc, member
• • • •
• Leading provider of comprehensive
logistics services in Montenegro;
• 16,700 m
2
of company-owned and
2,100 m
2
of leased warehousing area.
Intereuropa Skopje
DOO, Skopje
Manuela Mišev Spasov,
Director
Andrej Kariš, Director
General
Meeting of
Shareholders
Representative of Intereuropa d. d.
by authorisation of the Management
Board
• • • •
• Leading provider of groupage services
in North Macedonia;
• 2.100 m
2
of company-owned
warehousing area.
Intereuropa Global
Logistics Service
Albania, Durres
Dashamir Mandija, Director Sole partner Intereuropa, d. d. as the sole partner • •
• Company specialising in land and sea
freight services.
TOV TEK ZTS,
Uzhhorod
Anatolly Nikolajević
Parfenyuk,
Director
General
Meeting of
Shareholders
Miha Romih, MSc, Chairman of the
General Meeting of Shareholders
Neva Klančič, Chair of the Audit
Committee
Miha Romih, MSc, member of the
Audit Committee
Svetlana Čajevska, member of the
Audit Committee
•
• Company specialising in railway freight
and international road transport
services;
TOV Intereuropa–
Kiev, Ukraine
Igor Bibikov,
Director
Sole partner Intereuropa, d. d. as the sole partner •
• The Company did not operate in 2020.
* Own warehousing area comprises closed warehousing area owned by Intereuropa (excluding tents and canopies).
The Intereuropa Group has been a member of the Pošta Slovenije Group since 13 November 2019.
01 / INTRODUCTION
11
INTEREUROPA / INTRODUCTION / 2020
1.3 LETTER FROM THE PRESIDENT OF THE MANAGEMENT BOARD
Dear Shareholders and Business Partners,
In 2020, which was characterised by the COVID-19 pandemic, the Intereuropa Group once again proved that it
is an important logistics provider in Slovenia and the wider region that responds rapidly to changes in the economic
environment while successfully steering its operations, even in adverse conditions. Immediately following the outbreak
of the pandemic in March 2020, all Group companies began to implement all measures required to protect the health
of employees and business partners, and to ensure business continuity. The success of those measures was reﬂected
in a relatively low proportion of employees infected with COVID-19, and in the continuous ﬂow of goods and logistics
support to customers along the entire supply chain on all markets where the Group operates. Nevertheless, the Group’s
sales were down relative to 2019 due to the pandemic-related restrictive measures implemented in countries in which the
Group operates.
The Group generated EUR 150.7 million in sales revenue in 2020, a decrease of 6% relative to 2019, but 8% higher than
planned for 2020. Cash ﬂows from operating activities (EBITDA) totalled EUR 12.3 million, a decrease of 12% relative to the
previous year, but 21% higher than planned. In the difﬁcult economic conditions and in the context of declining sales, we
limited the drop in operating results and ended the year with a net proﬁt of EUR 3.6 million in 2020, a decrease of EUR 0.6
million relative to the previous ﬁnancial year, but EUR 2.3 million above the planned net proﬁt set out in the revised plan
for the year, which was adopted in July 2020.
Also having a positive impact on results relative to 2019 were the more favourable lending terms that the parent company
Intereuropa, d. d. agreed in the loan reﬁnancing process in 2020, while the guarantee issued by Pošta Slovenije, d. o. o.
for 80% of the loan amount, in turn, had a positive impact on lending terms.
The Group’s net debt was down by EUR 10.0 million during the year to stand at EUR 44.4 million at the end of 2020.
Many activities in 2020 were dedicated to integration with Pošta Slovenije. With the takeover by the latter, Intereuropa
became part of the ﬁnancially stable Pošta Slovenije Group, which gives the Company and the entire Intereuropa Group
ample opportunity for future growth and development. I believe that we will exploit that opportunity well and become
even better.
The Intereuropa Group is very market-oriented and constantly searches for new business opportunities on the highly
competitive logistics services market. We achieve efﬁcient and successful operations by offering a wide range of high-
quality logistics services in three business lines, i.e. land and intercontinental transport and logistics solutions in own and
leased warehouses, and through the use of innovative approaches. We are ﬂexible, and can boast of the teamwork of
highly qualiﬁed employees and effective cost optimisation. All of this allows us to be competitive and offer customers
comprehensive logistics services.
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INTEREUROPA / INTRODUCTION / 2020
Numerous activities in 2020 were dedicated to the specialisation of operational processes. We successfully implemented
major logistics projects that required from us a high level of coordination and a great deal of experience. In addition, we
also demonstrated our ability to intensify marketing activities for the purpose of promotions on the markets where we are
present and in the wider region.
Representing an important factor in the competitiveness of the Intereuropa Group are investments in the development
of information technology, which can be seen in the continued introduction of information solutions at subsidiaries and in
the centralisation of IT management. Just how important that area is was seen at the outbreak of the pandemic when we
successfully ensured the technical conditions and requisite information security for work from home by a large number of
employees.
In 2020, we also gave a great deal of attention to dialogue with employees, and concern for their motivation and training.
We are aware that motivated and satisﬁed employees are an important factor in the Group’s performance.
Based on achieved operating results in recent years and plans for the future of the Intereuropa Group, a new strategic
development programme was drafted for the Intereuropa Group as part of the Pošta Slovenije Group. That programme
was approved by the Supervisory Board in December 2020. Emphasis is placed on growth in the Group’s sales, most
notably at the parent company in Slovenia and at the subsidiaries in Croatia and Serbia. The Group will earmark EUR 60
million for major investment projects in the period until 2025, while at the same time divesting obsolete real estate. In
addition to investments in the logistics infrastructure and information technology, we will also invest in the competences
of employees and the continued development of high-quality logistics services. In the coming strategic period from 2021
to 2025, the Intereuropa Group will continue to pursue its vision as a superior and leading provider of comprehensive
logistics solutions in the countries of the former Yugoslavia. The Intereuropa Group remains present in Central Europe,
where through Slovenia we coordinate all ﬂows of goods between Central, South-Eastern and Eastern Europe.
I believe that 2021 will be very important for the further growth and development of the Intereuropa Group. It will also be
a year in which integration activities will continue with our owner: the Pošta Slovenije Group. As part of the Pošta Slovenije
Group, we will continue to strengthen our market position in logistics, invest in the optimisation of processes, ensure
ﬁnancial stability and the development of employees, and thus provide logistics support to customers along the entire
supply chain. We will continue to pursue our mission to satisfy the needs of customers for logistics services and ensure the
optimal functioning of supply chains for those customers. This will be achieved through the use of innovative approaches,
ﬂexibility, the teamwork of highly trained employees, our lean organisational structure and cost-efﬁciency.
We will continue activities in the areas of corporate integrity and compliance at all companies, and build on the identiﬁcation
of risks at individual companies and the management of those risks, with a greater emphasis on monitoring the success of
measures.
There is no doubt that last year was special for all of us. The pandemic, the likes of which we have never seen, changed
our way of doing business. In this new and different world, we joined forces with shareholders and business partners in
the search for the best paths forward and proved that we are able to ﬁnd solutions, even in difﬁcult circumstances. We
proved that we can rely on one another, and that we know how and are able to work together, no matter the external
circumstances. Guided by trust, cooperation, ﬂexibility and the search for the best possible solutions, we look forward to
the new period before us and our continued cooperation.
Marko Cegnar
President of the Management Board
01 / INTRODUCTION
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1.4 REPORT OF THE SUPERVISORY BOARD FOR 2020
In 2020, the Supervisory Board monitored the operations of Intereuropa, d. d. and the Intereuropa Group, and responsibly
supervised its management. It was briefed periodically on reports on different business lines, discussed various aspects
of their performance, and adopted the appropriate resolutions in this regard and monitored the implementation thereof.
Certain topics were discussed in advance in detail by committees, e.g. the Audit Committee and the Nomination and
Remuneration Committee, before being discussed by the Supervisory Board. The Supervisory Board adopted the
appropriate resolutions on the basis of their ﬁndings and recommendations.
1.4.1 COMPOSITION OF THE SUPERVISORY BOARD
The composition of the Company's Supervisory Board was changed at the end of 2019, when shareholders elected the
following persons at the General Meeting of Shareholders to serve as members of the Supervisory Board for a period of four
years beginning on 30 December 2019: Boris Novak, MSc, Andrej Rihter, MSc, Vinko Filipič and Milan Perović. On 13 January
2020, Boris Novak, MSc was unanimously appointed to serve as Chairman of Intereuropa, d. d.’s Supervisory Board.
The Company’s Supervisory Board functioned in a composition of six members in 2020. That composition is presented in
the section Corporate governance statement (Composition of the Supervisory Board and its committees), in the business
report section of the annual report.
1.4.2 WORK OF THE SUPERVISORY BOARD IN 2020
The work and decision-making of the Supervisory Board are based on the monitoring and veriﬁcation of the operations
of Intereuropa, d. d. and the Intereuropa Group. The work of the members of the Supervisory Board and the work of
committee members, was professional and focused on the effective performance of their function. In adopting the
appropriate resolutions, the Supervisory Board was supported in terms of appropriate content by the proposals of its
committees. The Supervisory Board continuously informed interested parties about its most important decisions.
The materials that served as the basis for conducting sessions and adopting the relevant decisions were made available in
a timely manner and in accordance with the Rules of Procedure of the Supervisory Board and the Rules of Procedure of
the Audit Committee. Reports prepared by the Management Board for the purpose of the work of the Supervisory Board
and the Supervisory Board’s committees were suitable for the quality assessment of information and the fulﬁlment of the
obligations of Supervisory Board members that are prescribed by the law and the Articles of Association.
The Supervisory Board believes that its cooperation with the Management Board was appropriate, and compliant with
legislation and best practices. To the best of its knowledge and with due care, the Supervisory Board requested the necessary
clariﬁcations from the Management Board to assess the position of the Company, and formulated the appropriate resolutions
based on those clariﬁcations. The Supervisory Board continuously monitored the implementation of its own resolutions.
The Supervisory Board met at 15 sessions, two of which were correspondence sessions. All members of the Supervisory
Board attended sessions regularly. Attendance was 100% at all but one of the Supervisory Board’s sessions. Some sessions
were conducted as video-conference meetings in 2020 due to the COVID-19 pandemic. The Supervisory Board and
Management Board focused their efforts on deﬁning and monitoring the development strategy, and managing business
risks, which is important for the successful future operations of the Company and the Intereuropa Group.
The important matters that the Supervisory Board discussed in 2020 are presented below:
• It discussed and approved interim reports regarding the current operations of the entire Intereuropa Group and of individual
subsidiaries on a quarterly basis. It also monitored the compliance of reports with adopted business and strategic plans.
• It adopted the audited annual report of the Intereuropa Group for 2019, together with the report of the certiﬁed audit ﬁrm
Ernst & Young, d. o. o., and was briefed in advance on the ﬁndings of the audit.
• It took a position regarding the corporate governance statement and statement regarding non-ﬁnancial operations in
accordance with the ZGD-1J.
• Together with the Management Board, the Supervisory Board drafted the agenda and proposed resolutions with justiﬁcations
for the 34th General Meeting of Intereuropa, d. d., which was held on 27 August 2020.
• It was briefed quarterly on sales activities, changes in the balance of receivables, risk management reports, reports on the sale
of real estate and reports on the progress of the implementation of priority projects.
• It adopted the plan of the Intereuropa Group for 2020 on 10 February.
• It gave its consent to the signing of an employment contract with President of the Management Board, Marko Cegnar, and
Management Board members, Marko Rems and Matija Vojsk, MSc.
• On 9 July, it adopted the revised plan of the Intereuropa Group for 2020, which was drafted on the basis of assessments of
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INTEREUROPA / INTRODUCTION / 2020
operations and risks solely as the result of the COVID-19 pandemic.
• It adopted the remuneration policy for members of Intereuropa, d. d.’s Management Board, which complies with the
provisions of the Act Governing the Earnings of Management Staff at Companies under the Majority Ownership of the
Republic of Slovenia and Self-Governing Local Communities (ZPPOGD) and the provisions of the Companies Act (ZGD-1) and
the Employment Relationships Act (ZDR-1).
• At the proposal of the Nomination and Remuneration Committee, it gave its consent to the work contract of the external
member of the Supervisory Board's Audit Committee.
• It was briefed on the semi-annual and annual report on the work of the Internal Audit Department and gave its consent to the
rules on the work of the Internal Audit Department.
• It assessed the effectiveness of the work of the Supervisory Board in 2020 according to the methodology of the Slovenian
Directors’ Association, and adopted an action plan for future work improvements on the basis of the results of that assessment.
• The Supervisory Boar<d monitored the implementation of strategic projects.
• It was briefed on the report of the Works Council of Intereuropa, d. d. as it relates to employee participation in management.
• It was briefed annually and semi-annually on the report on the corporate integrity system.
• It discussed the reports of the Audit Committee and the Nomination and Remuneration Committee.
• At its session held on 28 October, the Supervisory Board of Intereuropa, d. d. reappointed the current President of the
Management Board, Marko Cegnar, to a four-year term of ofﬁce, effective 12 November 2020.
• The Supervisory Board was briefed at the session of 28 October that as of 12 November 2020 the term of ofﬁce of current
Management Board member, Matija Vojsk, MSc would cease, and decided that, after 12 November 2020, the Management
Board of Intereuropa, d. d. will be reconstituted so that it comprises two members: President of the Management Board,
Marko Cegnar, and Vice-President of the Management Board, Marko Rems.
• The Supervisory Board adopted the business and ﬁnancial plan of the Intereuropa Group for the 2021 ﬁnancial year and the
Strategic development programme of the Intereuropa Group until 2025.
• It was briefed on the amended Rules of Procedure of the Management Board.
• It approved the ﬁnancial calendar of announcements for 2021, in which the Company’s major public announcements are
planned.
• At the end of the calendar year, it adopted its own work plan, including the planned content of sessions in 2021.
• The Supervisory Board monitored and was actively included in the integration processes of Intereuropa, d. d. and Pošta
Slovenije, d. o. o., a process that required a great deal of engagement by both the Management Board and Supervisory
Board.
• It was briefed on other information relating to Intereuropa, d. d., the Intereuropa Group and its subsidiaries.
The work of the Supervisory Board was in line with the provisions of applicable legislation, the Articles of Association, the
Rules of Procedure of the Supervisory Board, the internal acts of Intereuropa, d. d., the Corporate Governance Policy
of Intereuropa, d. d. and the Slovenian Corporate Governance Code (hereinafter: Code). The Supervisory Board and
Management Board are committed to respecting the independence of the members of both bodies, and to taking
the appropriate action in circumstances that could lead to a signiﬁcant change in the status of an individual member of
the Management Board or Supervisory Board in relation to the Company. They determined that all Supervisory Board
members meet the criteria of independence. Both bodies thus signed a statement on the fulﬁlment of the criteria of
independence. The Company publishes the statements of Supervisory Board members on its website. In their work and
decision-making, Supervisory Board members took into account the objectives of the Company, and subordinated any
other personal interests or the individual interests of third parties, the Management Board, shareholders and the public
to those objectives. The members of the Supervisory Board are qualiﬁed, and possess the appropriate competences,
different knowledge and experience with respect to the frameworks and requirements in which the Company operates.
The Supervisory Board believes that its composition and size facilitate effective discussions and high-quality decision-
making based on the diverse experience of its members.
The remuneration of members of the Supervisory Board and its committees is disclosed in the ﬁnancial report of the parent
company in note no. 32 Other explanations. Other costs associated with the work of the Supervisory Board and its committees
comprise the costs of liability insurance for members of the Supervisory Board, membership fees for the Slovenian Directors’
Association and training costs for Supervisory Board members. The aforementioned costs amounted to EUR 20,988 in 2020.
Two committees functioned under the aegis of the Supervisory Board in 2020: the Audit Committee and the Nomination
and Remuneration Committee. The composition of the Supervisory Board’s committees is described in the section
Corporate governance statement (Composition of the Supervisory Board and its committees). Members prepared
themselves adequately for topics discussed at individual committee sessions and put forward constructive proposals, and
through their active participation, contributed to the performance of the Supervisory Board’s tasks. The work of committees
contributed signiﬁcantly to the effective work of the Supervisory Board.
The Audit Committee met at thirteen sessions in 2020. One of those sessions was a correspondence session. All members
of the Audit Committee of Intereuropa, d. d.’s Supervisory Board were present at all sessions and voted on matters by
submitting ballots to the chair of the Audit Committee. Members of the Supervisory Board who are not members of the
01 / INTRODUCTION
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INTEREUROPA / INTRODUCTION / 2020
Audit Committee were kept abreast about the latter’s work by viewing the minutes of and materials for sessions published
on an external portal for members of the Audit Committee. The chair of the Audit Committee also regularly reported on
the committee’s work and ﬁndings at sessions of the Supervisory Board, as explained in the point Report on the work
of the Audit Committee. The Audit Committee addressed issues in accordance with the ZGD-1, recommendations for
the work of audit committees, the Audit Committee’s rules of procedure, the work plan of the Supervisory Board’s Audit
Committee adopted on 17 November 2020 and the resolutions of the Audit Committee.
The Audit Committee was regularly briefed on periodic and quarterly reports on the operations of the Group and
Group companies, and on assessments of the interim operating results of Intereuropa, d. d. and the Group, while special
attention was given to ﬁnancial and accounting data, liquidity, borrowing and the fulﬁlment of commitments to banks. The
committee regularly monitored periodic risk management reports for the Company and Group, and the half-yearly and
annual reports of the Internal Audit Department.
In 2020, the Audit Committee was briefed on the Internal Audit Department’s annual report for 2019 and on the latter’s work
plan for 2020, and was regularly briefed throughout the year on quarterly reports on the work of the Internal Audit Department,
and on reports on the implementation of the latter’s recommendations and the recommendations of the external auditor.
The Audit Committee held several meetings in 2020 with the external auditors of Ernst & Young, d. o. o. during the
preliminary audit and audit of the ﬁnancial statements. During those meetings, it was actively involved in the deﬁnition
of areas subject to auditing, monitored the independence and the quality of the work of the certiﬁed auditor and was
briefed on the course of and ﬁndings from the preliminary audit/audit of the ﬁnancial statements of the Company and
Intereuropa Group. It discussed the unaudited and audited annual report of the Company and the Intereuropa Group for
2019, with the opinion of the independent auditor. It issued a report on its work in 2019, with an assessment of the annual
report of the Company and the Intereuropa Group for 2019. It was briefed on the ﬁndings and recommendations from
the letter to the management drafted by the audit ﬁrm, and on response reports.
The Audit Committee was also briefed on the business-ﬁnancial plan of the Intereuropa Group for 2021 with projections
for 2022 and 2023 and on the Strategic Development Programme of the Intereuropa Group for the period 2021 to 2025,
and proposed that the Supervisory Board approve both plans. The Audit Committee adopted its work plan for 2021 and
carried out a self-assessment of its work for the previous year, and thus established the basis for its work in the coming year.
In 2020, the Supervisory Board's Nomination and Remuneration Committee met at ﬁve sessions, one of which was a
correspondence session. The main topics discussed were the procedure of appointing the President of the Management
Board and the future composition of Intereuropa, d. d.'s Management Board, and the remuneration of the latter. The entire
process took a few months, and was conducted by the Nomination and Remuneration Committee of Intereuropa, d. d.'s
Supervisory Board, which was already briefed on a variety of potential approaches to recruiting candidates in June 2020,
and on the basis of the possibilities available decided in favour of the re-election process. In adopting its decisions, the
committee relied on legislation governing this area, as well as on the Company's internal acts.
1.4.3 PERFORMANCE OF THE INTEREUROPA GROUP IN 2020
The Intereuropa Group is a leading logistics company that is consolidating its position as the leading provider of logistics
solutions in Slovenia and Southeast Europe. The performance of the Company and the Intereuropa Group focuses on
achieving long-term growth.
The Intereuropa Group generated EUR 150.7 million in sales revenue in 2020, a decrease of 6% relative to 2019, but 8%
higher than planned. The main factor in lower sales was the COVID-19 pandemic. The Intereuropa Group generated a
cash ﬂow from operating activities (EBITDA) of EUR 12.3 million in 2020, a decrease of 12% relative to 2019, but 21% higher
than planned. Earnings before interest and taxes (EBIT) was also down relative to 2019 (by 23%), but was 120% higher than
planned to stand at EUR 5.8 million in 2020. Despite the negative effects of the COVID-19 pandemic, the Intereuropa
Group ended the 2020 ﬁnancial year with a proﬁt of EUR 3.6 million.
It responded to the adverse conditions by accelerating the implementation of certain development projects, and
continued to implement enhanced marketing activities and supply logistics support to customers along the entire supply
chain through its network of twelve subsidiaries in nine countries in Southeast Europe and the Ukraine in the scope of the
Pošta Slovenije Group during the remainder of 2020.
The Supervisory Board assesses that Intereuropa, d. d. performed well and achieved the key outlined objectives of Intereuropa,
d. d. and the Intereuropa Group. It also bases its ﬁndings on the independent auditor's report on the ﬁnancial statements of
Intereuropa, d. d. and the Intereuropa Group for 2020, and on the submitted Management Board reports. In addition to its
regular tasks, the Supervisory Board devoted special attention in 2020 to the implementation of the Strategic development
programme of the Intereuropa Group and its business and ﬁnancial plan, and to integration with Pošta Slovenije, d. o. o.
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INTEREUROPA / INTRODUCTION / 2020
1.4.4 APPROVAL OF THE 2020 ANNUAL REPORT
Pursuant to paragraph 3 of Article 272 of the Companies Act (ZGD-1), Intereuropa, d. d.’s Management Board submitted
the annual report of the Intereuropa Group and Intereuropa, d. d. for 2020, together with the auditor’s report for 2020,
immediately after compilation and the issuance of the auditor’s opinion. The annual report was discussed by the Supervisory
Board at its regular session of 29 April 2021. The annual report of the Intereuropa Group and Intereuropa, d. d. for 2020
was audited by the audit ﬁrm Ernst & Young revizija, poslovno svetovanje, d. o. o., which issued an unmodiﬁed opinion
regarding the ﬁnancial statements of the Intereuropa Group and Intereuropa, d. d. for 2020. At its session of 29 April 2021,
the Audit Committee of Intereuropa, d. d.’s Supervisory Board discussed the audited annual report of the Intereuropa
Group and Intereuropa, d. d. for 2020 and found that the annual report was compiled in a timely, clear and transparent
manner, and in accordance with the provisions of the Companies Act (ZGD-1), the applicable International Financial
Reporting Standards, as adopted by the European Union, and other relevant legislation. The Audit Committee had no
comments with respect to the annual report of the Intereuropa Group and Intereuropa, d. d. for 2020, and proposed
that the Supervisory Board adopt a decision in accordance with Article 282 of the Companies Act (ZGD-1) regarding the
approval of the annual report of the Intereuropa Group and Intereuropa, d. d. for 2020. Based on the auditor’s opinion, the
positions of the Audit Committee of Intereuropa, d. d.’s Supervisory Board, and data and disclosures in the annual report
of the Intereuropa Group and Intereuropa, d. d. for 2020, the Company’s Supervisory Board assesses that the auditor
performed its work independently and professionally in accordance with valid legislation and business practices, that the
annual report was compiled, in all material aspects, in accordance with the requirements of the Companies Act (ZGD-1),
and that the ﬁnancial statements fairly present, in all material aspects, the ﬁnancial position of the Intereuropa Group and
Intereuropa, d. d. as at 31 December 2020, and their operating results and cash ﬂows for the year then ended in accordance
with the International Financial Reporting Standards, as adopted by the European Union. The Supervisory Board has no
remarks regarding the auditor’s report. It also has no comments regarding the annual report of the Intereuropa Group and
Intereuropa, d. d. for 2020 that would in any way inhibit its decision to approve the annual report. Thus, in accordance with
paragraph 3 of Article 282 of the Companies Act (ZGD-1), the Supervisory Board of Intereuropa, d. d. approved the annual
report of the Intereuropa Group and Intereuropa, d. d. for 2020. The 2020 annual report was approved by the prescribed
deadline, i.e. one month from its submission to the Supervisory Board by the Company’s Management Board.
In accordance with Article 545 of the ZGD-1, the Company drafted the report on relations with afﬁliates indicating all the
legal transactions that the company concluded with the controlling company or any undertaking related thereto in the
previous ﬁnancial year, at the initiative of or in the interest of these companies, and all other acts that were committed or
omitted at the initiative or in the interest of these companies in the previous ﬁnancial year.
The Management Board of Intereuropa, d. d. hereby explained that the Company did not suffer any deprivation on
account of the transactions and acts presented in the report on relations with afﬁliates.
Pursuant to Article 546 of the ZGD-1, the auditor audited the report on relations with afﬁliates. The auditor had no comments
regarding that report and conﬁrmed:
• that the statements in the report on relations between associated companies for the year ended 31 December 2020 are
accurate in all material respects;
• that the value of the Company’s legal transactions stated in the report is not disproportionately high given the circumstances
that were known at the time the legal transactions were executed; and
• that there are no circumstances relating to other acts stated in the report that would suggest a substantially different
assessment of deprivation than the one given by the management.
In accordance with Article 546a, the Supervisory Board was briefed on the report on relations with afﬁliates and on the auditor's
opinion on the report, and had no comments on the Management Board's statement regarding relations with afﬁliates.
When adopting the annual report, the Supervisory Board also took a position regarding the corporate governance
statement and the statement of compliance with the reference code, which are included in the business report section of
the annual report of the Intereuropa Group and Intereuropa, d. d. for 2020, and assessed that they reﬂect the actual state
of corporate governance in 2020.
Koper, 29 April 2021
Andrej Rihter, MSc
Deputy Chairman of the Supervisory Board
01 / INTRODUCTION
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INTEREUROPA / INTRODUCTION / 2020
1.5 STATEMENT OF RESPONSIBILITY OF THE MANAGEMENT BOARD
The Management Board is responsible for compiling the annual report of Intereuropa, d. d. and the Intereuropa Group
and the accompanying ﬁnancial statements in such a way that it presents a true and fair picture of the ﬁnancial position and
the results of the operations of the Company and its subsidiaries in 2020.
The Management Board also conﬁrms that the appropriate accounting policies were applied in the compilation of the
ﬁnancial statements of Intereuropa, d. d. and the Intereuropa Group, that accounting estimates were made according to
the principle of prudence and the diligence of a good manager, and that the ﬁnancial statements of Intereuropa, d. d.
and the Intereuropa Group present a true and fair picture of their ﬁnancial position and the results of their operations in
2020.
The Management Board is also responsible for ensuring that accounting is conducted correctly and that appropriate
measures are taken to secure property and other assets, and conﬁrms that the ﬁnancial statements of Intereuropa, d. d.
and the Intereuropa Group, together with the notes, have been compiled on a going concern basis and in line with
current legislation and the International Financial Reporting Standards, as adopted by the EU.
The Management Board hereby conﬁrms that, to the best of its knowledge, the ﬁnancial report was compiled in
accordance with the applicable ﬁnancial reporting framework and presents a true and fair picture of the assets, liabilities,
ﬁnancial position and operating results of Intereuropa, d. d. and the subsidiaries included in the consolidation of the
Intereuropa Group. The Management Board also conﬁrms that the business report includes a fair presentation of the
development of Intereuropa, d. d.’s operations and of its ﬁnancial position, including a description of the principal types
of risk to which Intereuropa, d. d. and the subsidiaries included in consolidation are exposed. The business report includes
a fair presentation of information regarding material transactions with related parties, and is compiled in accordance with
the applicable legislation and the International Financial Reporting Standards.
The President and member of Intereuropa, d. d.’s Management Board have been briefed on the constituent parts of the
annual report of Intereuropa, d. d. and the Intereuropa Group for 2020. By signing below, they hereby conﬁrm that they
agree with the aforementioned report in full.
Management Board of Intereuropa, d. d.
Koper, 13 April 2021
Marko Cegnar Marko Rems
President of the Management Board Vice-President of the Management Board
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INTEREUROPA / INTRODUCTION / 2020
1.6 SIGNIFICANT EVENTS IN 2020
• On 16 January, Intereuropa, d. d. received a decision from the Securities Market Agency (SMA) regarding the takeover bid
of the acquiring company Pošta Slovenije, d. o. o. for the shares of the target company Intereuropa, d. d., in which the SMA
found the aforementioned bid successful.
• On 31 January, Intereuropa, d. d. successfully completed the reﬁnancing of several loans arranged under the ﬁnancial
restructuring agreement in 2012. Intereuropa, d. d. and a syndicate of banks, including Nova Ljubljanska banka, d. d. acting
as the organiser and agent, concluded a long-term loan agreement in the amount of EUR 54,850,000. The new loan
comprises two tranches, one with a maturity of seven years and the other with a maturity of four years. Pošta Slovenije, d. o.
o. contributed to that successful reﬁnancing by issuing a guarantee covering 80% of the amount of that loan.
• On 10 February, the Management Board of Intereuropa, d. d. signed a new collective agreement with representatives of
the ŠAK KS90 Trade Union and the Trade Union of Transportation and Communication Workers.
• On 10 February, the Supervisory Board of Intereuropa, d. d. adopted the Intereuropa Group’s planning document for 2020.
• In February 2020, Intereuropa, d. d. submitted a letter of intent to purchase the remaining participating interest in Intereuropa
RTC, d. d., Sarajevo, by which it will become 100% owner of that company. The consent of the Securities Commission of
the Federation of Bosnia and Herzegovina, whose operations have been suspended since November 2019, is required to
complete the takeover bid process. The takeover process cannot be completed without that consent.
• At its session held on 16 April, Intereuropa, d. d.’s Supervisory Board adopted the audited annual report of the Intereuropa
Group for the 2019 ﬁnancial year, together with the independent auditor’s report.
• On 26 May, the Company concluded annex 1 to a loan agreement with a syndicate of banks with the aim of mitigating
the effects of the COVID-19 pandemic and strengthening its liquidity position. The payment of principal and interest was
deferred for one year under that annex.
• At its session held on 9 July, the Company’s Supervisory Board adopted the Intereuropa Group’s revised business plan for
2020, in which the Group planned lower but positive operating results during the second half of 2020 in the context of
enhanced marketing activities. The revised business plan was drawn up as the result of the adverse economic conditions
following the outbreak of the COVID-19 pandemic. More information regarding the business plan is given in section 2.3.2
Business and ﬁnancial objectives.
• At the General Meeting of Shareholders of Intereuropa, d. d. held on 27 August, shareholders were briefed on the annual
report of the Intereuropa Group and Intereuropa, d. d. for 2019, together with the auditor’s report and the report of the
Supervisory Board on the results of the veriﬁcation of the annual report for 2019 and the conﬁrmation thereof, as well as
the remuneration of members of the Management Board and Supervisory Board. Ofﬁcial approval was conferred on the
Management Board and Supervisory Board for their work in 2019, and a decision was made on the use of the distributable
proﬁt in the amount of EUR 7,908,105.27, which remains undistributed.
• At its session held on 28 October, the Supervisory Board of Intereuropa, d. d. adopted a decision on the reappointment
of the current President of the Management Board, Marko Cegnar, to a four-year term of ofﬁce, effective 12 November
2020. The Supervisory Board was also informed that the term of ofﬁce of current member of the Management Board,
Matija Vojsk, MSc, will come to an end on 12 November 2020. The Supervisory Board decided that, after 12 November
2020, the Management Board of Intereuropa, d. d. will be reconstituted so that it comprises two members: President of the
Management Board, Marko Cegnar, and Vice-President of the Management Board, Marko Rems.
• On 19 November, the Supervisory Board of Intereuropa, d. d. adopted the Intereuropa Group’s business and ﬁnancial plan
for the 2021 ﬁnancial year.
• On 23 December, the Supervisory Board of Intereuropa, d. d. adopted the Strategic development programme of the
Intereuropa Group until 2025.
Significant events after the end of the 2020 financial year
• On 20 January 2021, the Government of the Republic of Slovenia awarded major recognition to Intereuropa, d. d.;
i.e. a commemorative token for sacriﬁces made in the ﬁght against COVID-19. The Company was recognised for its
sacriﬁces in preventing the spread of the SARS–CoV-2 infectious disease (COVID-19).
• On 6 April 2021, the subsidiary Intereuropa, d. o. o., Zagreb concluded an agreement on the purchase of land in the
Kukuljanovo industrial zone for the purpose of setting up a new logistics centre. On the same day, it also concluded
an agreement on the sale of the existing Dražice location, which it will continue to use under lease for its activity until its
relocation to the new logistics centre.
• On 31 March 2021, the Supervisory Board of Intereuropa, d. d. received the resignation of Boris Novak, MSc from his
position as Chairman and member of the Company’s Supervisory Board.
• In accordance with the agreement concluded with Pošta Slovenije at the end of December on the transfer of activities,
Intereuropa, d. d. transferred a portion of its support activities to Pošta Slovenije on 1 January 2021. Employees from those
support activities were also reassigned to Pošta Slovenije as part of the transfer of activities.
Information regarding signiﬁcant events is continuously published on the Company’s website at www.intereuropa.si.
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INTEREUROPA / INTRODUCTION / 2020
1.7 IMPACT OF COVID-19 ON OPERATIONS
Following the outbreak of the SARS-Cov-2 coronavirus pandemic (hereinafter: COVID-19) in March 2020, all Group
companies immediately began to implement all measures required to protect the health of employees and business
partners, and to ensure business continuity. Even in the difﬁcult economic and health situation, the Intereuropa Group
succeeded in ensuring the continuous ﬂow of goods and logistics support to customers along the entire supply chain on
all markets where the Group operates.
The Group's concern for the health and safety of employees in the workplace is paramount. Companies adopted a
number of measures and internal guidelines for the effective preventive and responsible conduct of all employees to
avoid the spread of virus infections, which in 2020 was seen in a relatively low proportion of infected employees (7%).
The Group earmarked EUR 0.1 million in 2020 for preventive means and other costs associated with preventive measures.
In order to minimise the impact of the epidemic on its operations, the Company's key activity was ensuring technical means
for work from home for a large number of employees, in addition to ensuring the required information security. Another
important goal was the protection of key personnel who enabled this type of work, and the continuous functioning of
the IT system.
Global economic activity has been hit hard by the COVID-19 pandemic. The strict measures put in place by individual
countries to curb the spread of the coronavirus through the shut-down of non-urgent service activities and the hampered
activities of other service sectors in the second and last quarter of the year caused a signiﬁcant decline in economic activity,
which could not be avoided by the Intereuropa Group and was reﬂected in a 6% decline in sales revenue relative to the
previous ﬁnancial year.
Extensive packages of measures focusing on the mitigation of the loss of income by the corporate and household sectors,
the securing of liquidity and support for economic recovery, were adopted at the national level and in the scope of the
ECB and the European Commission in order to mitigate the negative consequences of the epidemic. Intereuropa Group
companies that beneﬁtted from anti-coronavirus measures in that regard disclosed a total of EUR 1.1 million in other
operating revenues, while labour costs were up by EUR 0.3 million as the result of the payment of a crisis bonus.
In May 2020, the parent company concluded annex 1 to a loan agreement with a syndicate of banks with the aim of
mitigating the effects of the COVID-19 epidemic and strengthening its liquidity position. The payment of principal and
interest was deferred for one year under that annex.
The implementation of anti-coronavirus measures continues in 2021. The Management Board believes that the epidemic
will not have a signiﬁcant impact on the achievement of business plans in 2021.
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INTEREUROPA / INTRODUCTION / 2020
1.8 CORPORATE GOVERNANCE STATEMENT
Intereuropa, d. d. is a public limited company, i.e. a public-interest entity, with a two-tier governance system. Corporate
governance is based on the laws of the Republic of Slovenia, the Articles of Association, internal acts and the Corporate
Governance Policy of Intereuropa, d. d. The Company’s Articles of Association and other key governance documents are
accessible on the Company’s website at www.intereuropa.si, in the ‘Corporate Governance’ section under the ‘Investors’
tab. The principal guidelines of corporate governance are transparent operations, the clear segregation of responsibilities
and tasks between bodies, continuous concern for the independence and loyalty of the members of management and
supervisory bodies, and the continuous monitoring and implementation of improvements to increase the effectiveness
of governance.
In 2020, the Company applied the Slovenian Corporate Governance Code, which was adopted by the Ljubljana Stock
Exchange and the Slovenian Directors’ Association on 27 October 2016, as its reference code.
1.8.1 GENERAL MEETING OF SHAREHOLDERS
The Company’s share capital is divided into 16,830,838 ordinary registered no-par-value shares and 10,657,965 no-par-
value preference shares. Each no-par-value share represents the same stake and corresponding amount in the Company’s
share capital. The stake of individual no-par-value shares in the Company’s share capital is determined with respect to the
number of no-par-value shares issued. No-par-value shares may not be split.
Ordinary no-par-value shares provide their holders the following rights:
• the right to participate in the management of the Company (voting right);
• the right to a share in proﬁts; and
• the right to a proportional share of the assets remaining after the Company's liquidation or bankruptcy.
No-par-value preference shares provide their holders the following rights:
• the right to a share in proﬁts; and
• the right to a corresponding portion of residual assets after the liquidation or bankruptcy of the Company.
Preference shares give their holders priority in the sharing of proﬁts in the amount of EUR 0.01 (zero point zero one;
preferential amount) per share. The preferential amount is paid out in addition to the share in proﬁts received by the
holders of ordinary shares, in accordance with the relevant resolution on the use of distributable proﬁt.
1.8.1.1 Functional bases and method of convocation
Shareholders exercise their right to participate in the management of the Company at the General Meeting of Shareholders.
The competences, responsibilities and functioning of the General Meeting of Shareholders are governed by the Companies
Act, the Company’s Articles of Association and the Rules of Procedure of the General Meeting of Shareholders, which are
published on the Company’s website in the ‘Corporate Governance’ section under the ‘Investors’ tab.
The General Meeting of Shareholders may be convened by the Company’s Management Board at its own initiative, or at
the request of the Supervisory Board or shareholders. The annual General Meeting of Shareholders is typically convened by
the end of June every year. The Company informs shareholders in a timely manner about the convocation of the General
Meeting of Shareholders, which is published on the websites of the AJPES and Intereuropa, d. d., and via the Ljubljana
Stock Exchange’s SEOnet system.
Materials for the General Meeting of Shareholders, including proposed resolutions for all points on the agenda, are
available for viewing at the Company’s headquarters in Koper, in the Ljubljana Stock Exchange’s SEOnet system and on
the Company’s website in the ‘Corporate Governance’ section under the ‘Investors’ tab, from the date of convocation until
the day the General Meeting of Shareholders is held. Proposed resolutions also include the relevant justiﬁcations, which
provide shareholders sufﬁcient information to make prudent decisions.
Intereuropa, d. d. encourages all major shareholders to publicly disclose their governance policy. To that end, in the scope
of the convocation of the General Meeting of Shareholders, the Company also publishes a call to major shareholders to
publicly disclose, at a minimum, their voting policy, the type and frequency of governance activities, and the dynamics of
communication with the Company’s management and supervisory bodies.
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INTEREUROPA / INTRODUCTION / 2020
The main competences of the General Meeting of Shareholders are as follows:
• the adoption of the annual report;
• decisions regarding the use of distributable proﬁt;
• the appointment and recall of members of the Supervisory Board;
• the conferral of ofﬁcial approval on the members of management or supervisory bodies;
• decisions regarding amendments to the Articles of Association;
• decisions regarding measures to increase and decrease capital;
• decisions regarding the winding-up of the Company, and status transformations; and
• appointment of a certiﬁed auditor .
In most cases, the General Meeting of Shareholders makes decisions by a majority of votes cast. The General Meeting
of Shareholders makes decisions regarding certain important matters with a three quarters majority of represented share
capital. Those matters include:
• changes and amendments to the Articles of Association;
• decreases or increases in share capital;
• changes to the Company’s status;
• the early recall of members of the Supervisory Board; and
• other cases, if so provided for by law or the Company’s Articles of Association.
1.8.1.2 Conditions for attendance and communication with shareholders
Only shareholders entered in the Company’s share register (managed by the Central Securities Clearing Corporation or KDD)
and their authorised representatives or proxies who have registered to attend in writing by no later than the close of business
on the fourth day prior to the General Meeting of Shareholders have the right to attend and exercise voting rights at the
General Meeting of Shareholders. Each share entitles its holder to one vote. Only the holders of ordinary no-par-value shares
have the right to vote. The holders of preference shares do not have voting rights, unless the preference amount is not paid
within one year, or is not paid in full and the remainder is not paid the following year. Preference shareholders have voting
rights until that remainder is paid.
Intereuropa, d. d. encourages the active participation of the maximum number of small shareholders at the General Meeting
of Shareholders. Thus, the materials published when the General Meeting of Shareholders is convened also include sample
registration and authorisation forms. The Company’s website also has an ‘Investors’ tab, where small shareholders and other
investors will ﬁnd information regarding corporate governance and annual and interim reports, in addition to information
regarding the General Meeting of Shareholders.
Shareholders are briefed on adopted resolutions immediately following the conclusion of the General Meeting of
Shareholders, on the Company’s website and in the Ljubljana Stock Exchange’s SEOnet system.
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INTEREUROPA / INTRODUCTION / 2020
1.8.1.3 General Meeting of Shareholders in 2020
Three general meetings were convened in 2020. The ﬁrst was convened on 10 January 2020 on the basis of Article
47 of the Takeovers Act, but was later cancelled on 23 January 2020, as the reason for convening the General Meeting
of Shareholders was eliminated. The second General Meeting of Shareholders was convened at the proposal of the
shareholder Pošta Slovenije, d. o. o. to be held at 14 April 2020, but was also cancelled on 7 April 2020 at the proposal of
the shareholder Pošta Slovenije, d. o. o. and under the decision of the Management Board in order to comply with the
prohibitions set out in the Decree on the temporary prohibition of the gathering of people at public meetings at public
events and other events in public places in the Republic of Slovenia and prohibition of movement between municipalities
(Ofﬁcial Gazette of the Republic of Slovenia, No. 38/2020), adopted for the purpose of curbing and managing the SARS-
CoV-2 (COVID-19) epidemic.
The 40th annual General Meeting of Shareholders of Intereuropa, d. d. was convened for 27 August 2020. In accordance
with paragraph 2 of Article 315 of the ZGD-1, the holders of preference shares held voting rights during the General
Meeting of Shareholders. A total of 94.20% of shareholders with voting rights were present. The General Meeting of
Shareholders discussed the following points and adopted the following signiﬁcant resolutions:
• It was briefed on the annual report of the Intereuropa Group for 2019, together with the auditor’s opinion, and on the
Supervisory Board’s written report on the veriﬁcation of the annual report compiled for 2019.
• It adopted a resolution, whereby distributable proﬁt in the amount of EUR 7,908,105.27 will remain undistributed.
• It approved the work of the Company’s Supervisory Board and Management Board during the 2019 ﬁnancial year, and
conferred ofﬁcial approval on both bodies for their work in 2019.
• It was briefed on the Remuneration policy for members of Intereuropa, d. d.’s Management Board.
The shareholder Pan-Slovenian Shareholders’ Association announced a challenging action against the resolution on the
use of distributable proﬁt, which was not ﬁled by the legally prescribed deadline.
The full text of resolutions adopted by the General Meeting of Shareholders is available on the Company’s website at
www.intereuropa.si, in the subsection ‘General Meeting of Shareholders’ under the ‘Investors’ tab.
1.8.2 SUPERVISORY BOARD
1.8.2.1 Composition of the Supervisory Board and its committees
Intereuropa, d. d.’s Supervisory Board comprises six members, four of whom are shareholder representatives and two of
whom are employee representatives. Members serve a four-year term of ofﬁce, with the possibility of re-appointment.
Supervisory Board members who represent the interests of shareholders are elected by the General Meeting of
Shareholders. Employee representatives are elected by the Works Council of Intereuropa, d. d. The General Meeting
of Shareholders is only briefed on their election. The Supervisory Board supervises the management of the Company's
operations and is fully liable for the performance of its supervisory function.
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INTEREUROPA / INTRODUCTION / 2020
TABLE 7: COMPOSITION OF INTEREUROPA, D. D.’S SUPERVISORY BOARD AND ITS COMMITTEES DURING THE 2020 FINANCIAL YEAR
Name and surname
Function (Chairman,
deputy, member of the
Supervisory Board)
Initial appointment to
function
End of function/
term of ofﬁce
Shareholder/employee
representative
Attendance at sessions
with respect to total no.
of sessions (e.g. 5/7)
Gender
Nationality
Year of birth
Qualiﬁcations
Professional proﬁle
Independence according
to Article 23 of the Code
(YES/NO)
Existence of conﬂicts of
interest during ﬁnancial
year (YES/NO)
Membership
on supervisory
bodies of
other
companies
Membership on
committees (e.g. audit,
human resource,
or remuneration)
Chairman
/member
Attendance at sessions
of Audit Committee with
respect to total no. of
sessions (e.g. 5/7) **
Attendance at sessions
of the Nomination and
Remuneration Committee
with respect to total no.
of sessions (e.g. 5/7) ***
Boris Novak,
MSc
Chairman of Supervisory
Board since 13 Jan 2020
30 Dec 2019 29 Dec 2023
Shareholder
representative
14/15 M Slovene 1963
Bachelor’s degree
and master’s
degree in law
Corporate governance Yes No
Družba za
upravljanje terjatev
bank, d. d. (Bank
Assets Management
Company) and
Športna loterija,
d. d.
Member of the Nomination
and Remuneration Committee
since 13 Jan 2020
Member / 5/5
Andrej Rihter,
MSc
Deputy Chair of the
Supervisory Board since 13
January 2020
30 Dec 2019 29 Dec 2023
Shareholder
representative
15/15 M Slovene 1970
Bachelor’s degree
and master’s
degree in trafﬁc
technology
engineering
Logistics, investments
and procurement
Yes No SiDG, d. o. o.
Chairman of the Nomination
and Remuneration Committee
since 13 Jan 2020
Chair / 5/5
Vinko Filipič
Member of Supervisory
Board
30 Dec 2019 29 Dec 2023
Shareholder
representative
15/15 M Slovene 1971
Bachelor’s degree
in economics
Finance, accounting,
controlling, internal
auditing, sales and
market communication
Yes No
Športna loterija,
d. d.
Member of the Audit
Committee and deputy
chairman of the Audit
Committee since 13 January
2020
Deputy Chairman 13/13 /
Milan Perović
Member of Supervisory
Board
30 Dec 2019 29 Dec 2023
Shareholder
representative
15/15 M Slovene 1964
Bachelor’s degree
in economics
Finance and controlling Yes No /
Member of the Audit
Committee since 13 January
2020
Chair 13/13 /
Tjaša Benčina
Deputy Chair of the
Supervisory Board since
12 Jan 2020
20
November
2017
19
November
2021
Employee
representative
15/15 F Slovene 1968
Degree in
economics
Finance and logistics Yes No
Member of the
supervisory board
of the Municipality
of Koper
Member of the Nomination
and Remuneration Committee
since 21 November 2017
Member / 5/5
Zlatka Čretnik
Member of Supervisory
Board
20
November
2017
19
November
2021
Employee
representative
15/15 F Slovene 1968
degree in
economics
(higher education)
Finance and logistics Yes No /
Member of the Audit
Committee since 21 November
2017
Member 14/14 /
* The Supervisory Board met at a total of 15 sessions in 2020.
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INTEREUROPA / INTRODUCTION / 2020
TABLE 7: COMPOSITION OF INTEREUROPA, D. D.’S SUPERVISORY BOARD AND ITS COMMITTEES DURING THE 2020 FINANCIAL YEAR
Name and surname
Function (Chairman,
deputy, member of the
Supervisory Board)
Initial appointment to
function
End of function/
term of ofﬁce
Shareholder/employee
representative
Attendance at sessions
with respect to total no.
of sessions (e.g. 5/7)
Gender
Nationality
Year of birth
Qualiﬁcations
Professional proﬁle
Independence according
to Article 23 of the Code
(YES/NO)
Existence of conﬂicts of
interest during ﬁnancial
year (YES/NO)
Membership
on supervisory
bodies of
other
companies
Membership on
committees (e.g. audit,
human resource,
or remuneration)
Chairman
/member
Attendance at sessions
of Audit Committee with
respect to total no. of
sessions (e.g. 5/7) **
Attendance at sessions
of the Nomination and
Remuneration Committee
with respect to total no.
of sessions (e.g. 5/7) ***
Boris Novak,
MSc
Chairman of Supervisory
Board since 13 Jan 2020
30 Dec 2019 29 Dec 2023
Shareholder
representative
14/15 M Slovene 1963
Bachelor’s degree
and master’s
degree in law
Corporate governance Yes No
Družba za
upravljanje terjatev
bank, d. d. (Bank
Assets Management
Company) and
Športna loterija,
d. d.
Member of the Nomination
and Remuneration Committee
since 13 Jan 2020
Member / 5/5
Andrej Rihter,
MSc
Deputy Chair of the
Supervisory Board since 13
January 2020
30 Dec 2019 29 Dec 2023
Shareholder
representative
15/15 M Slovene 1970
Bachelor’s degree
and master’s
degree in trafﬁc
technology
engineering
Logistics, investments
and procurement
Yes No SiDG, d. o. o.
Chairman of the Nomination
and Remuneration Committee
since 13 Jan 2020
Chair / 5/5
Vinko Filipič
Member of Supervisory
Board
30 Dec 2019 29 Dec 2023
Shareholder
representative
15/15 M Slovene 1971
Bachelor’s degree
in economics
Finance, accounting,
controlling, internal
auditing, sales and
market communication
Yes No
Športna loterija,
d. d.
Member of the Audit
Committee and deputy
chairman of the Audit
Committee since 13 January
2020
Deputy Chairman 13/13 /
Milan Perović
Member of Supervisory
Board
30 Dec 2019 29 Dec 2023
Shareholder
representative
15/15 M Slovene 1964
Bachelor’s degree
in economics
Finance and controlling Yes No /
Member of the Audit
Committee since 13 January
2020
Chair 13/13 /
Tjaša Benčina
Deputy Chair of the
Supervisory Board since
12 Jan 2020
20
November
2017
19
November
2021
Employee
representative
15/15 F Slovene 1968
Degree in
economics
Finance and logistics Yes No
Member of the
supervisory board
of the Municipality
of Koper
Member of the Nomination
and Remuneration Committee
since 21 November 2017
Member / 5/5
Zlatka Čretnik
Member of Supervisory
Board
20
November
2017
19
November
2021
Employee
representative
15/15 F Slovene 1968
degree in
economics
(higher education)
Finance and logistics Yes No /
Member of the Audit
Committee since 21 November
2017
Member 14/14 /
* The Supervisory Board met at a total of 15 sessions in 2020.
TABLE 8: COMPOSITION OF THE AUDIT COMMITTEE'S EXTERNAL MEMBERS DURING THE 2020 FINANCIAL YEAR
First name and surname
Audit committee
Participation in
committee sessions with
respect to total number
of sessions
Gender
Nationality
Education
Year of birth
Professional proﬁle
Membership in
Barbara
Gorjup*
Audit
committee
13/13 F Slovene MSc 1973
Business ﬁnance, economic
viability of investments,
controlling, risk management,
accounting, auditing, corporate
governance
Member of HSE, d.
o. o.'s supervisory
board and member of
Telekom Slovenije d.
d.'s supervisory board
Barbara
Nose**
Audit
committee
/ F Slovene
Bachelor’s
degree in
economics
1964 Certiﬁed auditor
Member of the
Supervisory Board of
Luka Koper, d. d.
* Committee member since 13 Jan 2020
** Committee member until 12 Jan 2020
The Supervisory Board had two functioning committees in 2020: the Audit Committee and the Nomination and
Remuneration Committee.
** The Supervisory Board’s Audit Committee met at 13 sessions.
*** The Supervisory Board’s Nomination and Remuneration Committee met at a total of ﬁve sessions.
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INTEREUROPA / INTRODUCTION / 2020
1.8.2.2 Audit Committee
At its constitutive session of 13 January 2020, the Supervisory Board appointed Milan Perović to serve as chair of the Audit
Committee, Vinko Filipič as deputy chair, Zlatka Čretnik as committee member and Barbara Gorjup as independent expert
of the Audit Committee.
The Audit Committee functioned in the following composition in 2020:
• Milan Perović (member and chair since 13 January 2020);
• Vinko Filipič (member and deputy chair since 13 January 2020);
• Zlatka Čretnik (member);
• Barbara Nose (independent expert and member until 12 January 2020); and
• Barbara Gorjup, MSc (independent expert and member since 13 January 2020).
The Audit Committee functioned in accordance with its competences, and in the manner set out in the ZGD-1, the
Corporate Governance Policy of Intereuropa, d. d., the Internal Audit Department’s charter and the Rules of Procedure of
the Audit Committee. Details regarding the work of the Audit Committee are presented in the report of the Supervisory
Board.
1.8.2.3 Nomination and Remuneration Committee
The composition of the Company's Supervisory Board was changed in 2019, when shareholders elected the following
persons at the General Meeting of Shareholders to serve as members of the Supervisory Board for a period of four years
beginning on 30 December 2019: Boris Novak, MSc, Andrej Rihter, MSc, Vinko Filipič and Milan Perović. At its constitutive
session of 13 January 2020, the Supervisory Board appointed Andrej Rihter, MSc to serve as chair of the Nomination and
Remuneration Committee, and Boris Novak, MSc and Tjaša Benčina to serve as members of that committee.
The Nomination and Remuneration Committee met at ﬁve sessions in 2020, where it primarily discussed topics relating
to the composition of the Management Board, the reappointment of the President of the Management Board and the
conclusion of contracts with members of the Management Board. The committee’s work is presented in more detail in the
report of the Supervisory Board. The committee functioned in the following composition:
• Andrej Rihter, MSc (chair since 13 January 2020); and
• Boris Novak, MSc (member since 13 January 2020); and
• Tjaša Benčina (member).
1.8.2.4 Competences, work method and remuneration of the Supervisory Board
The Supervisory Board functions within the scope of its competences and in the manner set out in the ZGD-1, the Company’s
Articles of Association and the Rules of Procedure of the Supervisory Board. The Supervisory Board’s commitments
regarding corporate governance are set out in Intereuropa, d. d.’s Corporate Governance Policy, and include a system
for identifying conﬂicts of interest and ensuring the independence of its members. All members of the Supervisory Board
signed a statement underlining their positions on the criteria of independence set out in Annex B: Conﬂicts of interest in
respect of the Slovenian Corporate Governance Code. Those statements are published on the Company’s website at
www.intereuropa.si.
Regular sessions of the Supervisory Board must be held at a minimum quarterly. The Rules of Procedure of the Supervisory
Board deﬁne the areas of the aforementioned body’s work. The Supervisory Board reports on its work at the General
Meeting of Shareholders.
Information regarding the remuneration of members of the Supervisory Board and its committees during the 2020
ﬁnancial year is disclosed in the ﬁnancial report of Intereuropa, d. d., in note no. 32 Other explanations.
26
INTEREUROPA / INTRODUCTION / 2020
1.8.3 MANAGEMENT BOARD
The tasks and areas of responsibility of the Management Board are deﬁned in the Company’s Corporate Governance
Policy, while the aforementioned body’s work method is set out in the Rules of Procedure of the Management Board
and the Company’s Articles of Association. The latter states that the Management Board shall comprise a maximum of four
members, while the Supervisory Board deﬁnes the number of members taking into account the principles of efﬁciency
and economy. The Management Board of Intereuropa, d. d. comprised three members for the period 1 January 2020
to 11 November 2020, which was cut to two members as of 12 November 2020. It comprised the President and two
members of the Management Board, with its composition changing as of 12 November 2020 to the President and Vice-
President of the Management Board. The Management Board managed the Company’s transactions independently and
at its own risk. The company is represented jointly by two members of the Management Board as follows: the President
and another member jointly, or by two members of the Management Board. Individual members of the Management
Board were responsible for speciﬁc work areas in accordance with the Rules of Procedure of the Management Board.
With its transition to a two-member management board, the President of the Management Board represents the Company
together with the Vice-President.
1.8.3.1 Work of the Management Board in 2020
The Management Board managed Intereuropa, d. d. and the Intereuropa Group in accordance with established strategic
objectives and policies. In performing its tasks and fulﬁlling its responsibilities, the Management Board observed the
principles of corporate governance and the Corporate Governance Policy of Intereuropa, d. d. and complied with the
provisions of the Slovenian Corporate Governance Code. The Management Board performs its work in accordance
with the principles set out in Intereuropa, d. d.’s Code of Ethics, applicable regulations, the Rules of Procedure of the
Management Board, the Company’s Articles of Association and the resolutions adopted by the Company’s bodies.
1.8.3.2 Remuneration of the Management Board
The remuneration of members of Intereuropa, d. d.’s Management Board are set out in the remuneration policy for
members of Intereuropa, d. d.’s Management Board, which was adopted by the Supervisory Board on 10 February 2020.
This policy lays down the rules by which the remuneration and rights to which all members of the Management Board
are entitled are deﬁned in contracts for all Management Board members. The aim of this policy is to ensure that all the
remuneration paid to Management Board members is proportionate to their tasks and responsibilities, and in line with
the Company’s ﬁnancial position, taking into account the provisions of the Act Governing the Earnings of Management
Staff at Companies under the Majority Ownership of the Republic of Slovenia and Self-Governing Local Communities
(hereinafter: the ZPPOGD), the Companies Act and the Employment Relationships Act. The remuneration received by
members of the Management Board comprises the wages, other remuneration and payment of material costs. Wages
comprise a basic salary and variable remuneration in accordance with the ZPPOGD. More detailed provisions on the
remuneration of Management Board members are evident in the remuneration policy that was presented to the public at
the General Meeting of Shareholders, and is available on the website of Intereuropa, d. d. in the section entitled Sessions
of the General Meeting of Shareholders.
Information regarding the remuneration of members of the Management Board during the 2020 ﬁnancial year is disclosed
in the ﬁnancial report of Intereuropa, d. d., in note no. 32 Other explanations.
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INTEREUROPA / INTRODUCTION / 2020
TABLE 9: COMPOSITION OF THE MANAGEMENT BOARD DURING THE 2020 FINANCIAL YEAR
Name and
surname
Function
(Chairman,
member)
Area of work
on the Management Board
Initial
appointment
to function
End of
function/
term of office
Gender
Nationality
Year of
birth
Qualifications Professional profile
Membership in supervi-
sory bodies of company/
unaffiliated companies
Marko Cegnar
President of the
Management Board**
Freight forwarding and logistics, sales and
marketing, HR and general affairs, public relations,
quality, security and formal governance of
subsidiaries
19 Mar 2016
until 11 November
2024
M Slovene 1973
Master’s degree in
management
Sales, marketing and logistics Not a member
Marko Rems
Vice-President of the
Management Board
Finance, accounting and controlling, real estate
management and central procurement, IT support,
legal affairs, corporate integrity and compliance,
and internal auditing in organisational terms
5 Jul 2017 until 4 Jul 2021 M Slovene 1967
Bachelor’s degree in
economics
Financial management with more than 20 years of
experience in ﬁnancial and information systems,
implementation and management of ﬁnancial restructuring,
and reorganisation in demanding environments
Not a member
Matija Vojsk,
MSc, MBA*
Member of the
Management Board
Quality, legal affairs, corporate integrity and
compliance, security and formal governance of
subsidiaries
12 Nov 2019 until 11 Nov 2020 M
Slovene 1963
Master’s degree in
management, MBA,
bachelor’s degree in
electrical engineering
Sales and marketing, procurement, corporate governance,
business restructuring, performance management
Not a member
* The term of ofﬁce of Matija Vojsk, MSc ended on 11 Nov 2020.
** Marko Cegnar was reappointed to the function of President of the Management Board on 12 November 2020 for a four-year term of ofﬁce.
1.8.3.3 Members of the Management Board in 2020
Marko Cegnar,
President of the Management Board since 12 November
2019 (reappointed to serve as President of the
Management Board as of 12 November 2020):
• year of birth: 1973;
• master’s degree in management;
• performed executive and management functions in
the areas of sales, marketing, procurement and logistics
at DHL logistika, d. o. o., Orbico, d. o. o., ITG Tobačna
Grosist, d. o. o., ISS SERVISYSTEM, d. o. o. and DHL
Express, d. o. o.;
• term of ofﬁce as President of the Management Board:
from 12 November 2019 to 11 November 2020;
reappointed on 12 November 2020 to a four-year term
of ofﬁce
• term of ofﬁce as member of the Management Board:
from 19 March 2016 to 11 November 2019;
• responsible for the following business segments: freight
forwarding and logistics, sales and marketing, HR and
general affairs, public relations, quality, security and
formal governance of subsidiaries.
28
INTEREUROPA / INTRODUCTION / 2020
TABLE 9: COMPOSITION OF THE MANAGEMENT BOARD DURING THE 2020 FINANCIAL YEAR
Name and
surname
Function
(Chairman,
member)
Area of work
on the Management Board
Initial
appointment
to function
End of
function/
term of office
Gender
Nationality
Year of
birth
Qualifications Professional profile
Membership in supervi-
sory bodies of company/
unaffiliated companies
Marko Cegnar
President of the
Management Board**
Freight forwarding and logistics, sales and
marketing, HR and general affairs, public relations,
quality, security and formal governance of
subsidiaries
19 Mar 2016
until 11 November
2024
M Slovene 1973
Master’s degree in
management
Sales, marketing and logistics Not a member
Marko Rems
Vice-President of the
Management Board
Finance, accounting and controlling, real estate
management and central procurement, IT support,
legal affairs, corporate integrity and compliance,
and internal auditing in organisational terms
5 Jul 2017 until 4 Jul 2021 M Slovene 1967
Bachelor’s degree in
economics
Financial management with more than 20 years of
experience in ﬁnancial and information systems,
implementation and management of ﬁnancial restructuring,
and reorganisation in demanding environments
Not a member
Matija Vojsk,
MSc, MBA*
Member of the
Management Board
Quality, legal affairs, corporate integrity and
compliance, security and formal governance of
subsidiaries
12 Nov 2019 until 11 Nov 2020 M
Slovene 1963
Master’s degree in
management, MBA,
bachelor’s degree in
electrical engineering
Sales and marketing, procurement, corporate governance,
business restructuring, performance management
Not a member
* The term of ofﬁce of Matija Vojsk, MSc ended on 11 Nov 2020.
** Marko Cegnar was reappointed to the function of President of the Management Board on 12 November 2020 for a four-year term of ofﬁce.
1.8.3.3 Members of the Management Board in 2020
Marko Rems,
Vice-President of the Management Board:
• year of birth: 1967;
• bachelor’s degree in economics;
• performed executive and management functions in the
areas of ﬁnance, accounting, information technology,
controlling and risk management at the following
companies: Družba za upravljanje terjatev bank, d. d.,
Ljubljana, Luka Koper, d. d., Adriatic Slovenica, d. d., KD
Holding, d. d., Ljubljana and Žito, d. d., Ljubljana;
• term of ofﬁce: from 5 July 2017 to 4 July 2021;
• responsible for the following business segments:
ﬁnance, accounting and controlling, real estate
management and central procurement, IT support, legal
affairs, corporate integrity and compliance, and internal
auditing in organisational terms.
Matija Vojsk, MSC
Member of the Management Board:
• year of birth: 1963;
• master’s degree in management, MBA, bachelor’s
degree in electrical engineering;
• his business experience includes strategic and
operational sales, marketing, strategic procurement
and corporate governance. He served in executive
roles in various economic sectors as a member of
management boards and as executive director;
• he also worked for several years as a business consultant,
four of those in a leading global network for auditing
and consultancy services;
• term of ofﬁce: from 12 November 2019 to 11 November
2020;
• responsible for the following business segments:
quality, legal affairs, corporate integrity and compliance,
security and formal governance of subsidiaries, and
also for internal auditing in organisational terms.
01 / INTRODUCTION
29
INTEREUROPA / INTRODUCTION / 2020
1.8.4 DESCRIPTION OF THE DIVERSITY POLICY IN CONNECTION WITH REPRESENTATION ON
THE COMPANY’S MANAGEMENT AND SUPERVISORY BODIES
Intereuropa, d. d. is aware of the importance of diversity in the composition of the Management Board and Supervisory
Board, as diversity increases the efﬁciency of the functioning of these bodies and fosters a more comprehensive
understanding of the business environment, and risks and opportunities connected with the Intereuropa Group’s
operations. Accordingly, the Policy Governing the Diversity of Management and Supervisory Bodies is an integral part of
the Corporate Governance Policy of Intereuropa, globalni logistični servis, d. d.
The following aspects are taken into account when determining the composition of the Management Board and
Supervisory Board:
• professional diversity such that the members have different knowledge, skills, competences and experience;
• diversity in terms of gender and age;
• the generally adopted principles of non-discrimination; and
• efforts to ensure the continuity of operation of the bodies by staggering the process of replacing members.
The Supervisory Board’s Nomination and Remuneration Committee and the Supervisory Board take into account diversity
policies primarily in relation to the following:
• the appointment of members to the Company’s Management Board;
• the recruitment, selection and submission of proposed candidates for members of the Supervisory Board to the General
Meeting of Shareholders; and
• the self-assessment of the Supervisory Board’s work, which should also include an assessment of the composition of the
Management Board and Supervisory Board in terms of diversity.
The proportion of under-represented members of management and supervisory bodies was 35% at Intereuropa, d.
d. and 32.8% at the Intereuropa Group level in 2020. The ratio between genders is appropriate taking into account the
region and sector in which the Intereuropa Group operates. Nevertheless, activities will continue to further improve the
ratio between genders. An updated policy on the diversity of management and governance bodies will be drafted in
2021. That policy will describe objectives, activities and measures to improve the diversity of management and governance
bodies in terms of gender and other aspects (age, education, etc.).
1.8.5 MANAGEMENT AND GOVERNANCE OF GROUP COMPANIES
The parent company Intereuropa, d. d. and its subsidiaries make up the Group, which is centrally managed by the
Management Board of Intereuropa, d. d. The policy governing links between the parent company and its subsidiaries
is set out in the Corporate Governance Policy of Intereuropa, d. d. The Policy on the Governance of Intereuropa Group
Subsidiaries includes the basic elements of the governance of subsidiaries. An effective system for managing and governing
subsidiaries is an important factor in the successful achievement of the business objectives of Group companies and in
the transparency of their operations.
1.8.5.1 Governance principles for subsidiaries
The basic principles on which the governance of the Intereuropa Group is based are the ﬁnancial stability of the Group,
centralised information support, an effective system of control over subsidiaries and motivated employees. At the forefront
of the governance of subsidiaries are cooperation between subsidiaries and the sharing of know-how and best practices
between Intereuropa Group companies.
The governance of Group companies is based on a combination of control and coordination mechanisms. A matrix system
for managing subsidiaries that combines formal corporate governance and the direct responsibility of functional managers
for certain activities at subsidiaries has been introduced. The centralisation of the most important decisions ensures the
uniformity of strategic policies and important business, HR-related and technical decisions. Control over ﬁnancial results
remains a core element of supervision. In addition to the appointed supervisory bodies of individual subsidiaries, functional
managers, and the controlling and internal audit departments also play an important role in supervision.
The management bodies of the parent company and subsidiaries communicate regularly with the aim of creating a
standard culture within the Intereuropa Group, ensuring the transfer of know-how and best practices, and exploiting
various synergies. Of key importance are cooperation and communication between all Intereuropa Group companies at
the market-operational level of speciﬁc product categories and products.
30
INTEREUROPA / INTRODUCTION / 2020
The effectiveness of the Group at multiple operational levels is achieved through consistent periodic communication and
the necessary measures to enhance the exploitation of synergies between Intereuropa Group companies, particularly in
the following areas:
• a coordinated and uniform market approach, with an emphasis on common logistics products and core product categories;
• the coordinated management of strategic and key customers;
• the development and optimisation of common logistics products;
• the development of standard IT support at all subsidiaries and for all logistics products;
• the transfer of best practices in the optimisation of processes and in preventive measures to manage risks; and
• employee development, with an emphasis on the acquisition and development of knowledge and competences relating
to core product categories and key logistics products.
Intereuropa Group companies operate in accordance with local legislation, resolutions adopted by the management
bodies of the parent company and subsidiaries, the Policy on the Governance of Intereuropa Group Subsidiaries,
cooperation agreements entered into between the parent company and individual subsidiaries, and the applicable
internal acts adopted by the Management Board of the parent company.
1.8.6 AUDITING
1.8.6.1 External auditing
The general meeting of Intereuropa d. d. appointed the audit ﬁrm ERNST & YOUNG Revizija, poslovno svetovanje, d. o.
o., Dunajska cesta 111, Ljubljana to audit the ﬁnancial statements of Intereuropa, d. d. and the Intereuropa Group for 2019,
2020 and 2021.
The transactions of Intereuropa, d. d. and its subsidiaries with audit ﬁrms are presented in the Company’s ﬁnancial report
as part of the notes to ﬁnancial statements of the Company and Group.
1.8.6.2 Internal auditing
The mission of the IAD is to strengthen and protect the value of the Intereuropa Group through the independent and
unbiased issue of objective assurances based on a risk assessment, and through the provision of consultancy services
and an in-depth understanding of the operations of the Group. It helps the organisation accomplish its objectives by
bringing a systematic, disciplined approach to evaluating and improving the effectiveness of risk management, control,
and governance processes.
Internal auditing tasks was performed within the Group by the parent company’s autonomous and independent Internal
Audit Department, which reports organisationally to the Management Board and functionally to the Supervisory Board’s
Audit Committee. Internal auditing was carried out in accordance with the internal auditing rules hierarchy, in particular with
the International Standards for the Professional Practice of Internal Auditing, the Code of Internal Auditing Principles and
the Code of Ethics of Internal Auditors, and the applicable laws, other regulations and bylaws.
The areas of auditing for 2020 were deﬁned in the department’s work plan, which was adopted by the Management
Board, discussed by the Audit Committee of the Supervisory Board and approved by the Supervisory Board. The internal
auditing tasks in 2020 included the completion of internal audits from the previous year, the performance of current
internal audits and advisory tasks, the monitoring of the implementation of recommendations from internal and external
audits, and operational and other tasks. Internal audits were performed by three employees. They were performed at the
parent company and at two subsidiaries. The objectives of internal audits were to assess the risk management approach
and the functioning of internal controls in connection with business and support processes, and the management
thereof, both in terms of the compliance of those processes with legal and internal regulations, and in terms of the
success and effectiveness of processes with regard to the adopted policies, established objectives and criteria of the
Company, and to issue recommendations for the improvement thereof. The areas subject to auditing included the policy
for the appointment of management staff at subsidiaries, the sea freight transport process, policies and the process of
groupage services, the management of the customs terminal, the guidelines and policy for ﬁnancial reporting and system
of authorisations. The COVID-19 pandemic impacted the processes by requiring them to be performed remotely. The
Internal Audit Department reports to the Management Board, Audit Committee and Supervisory Board regarding its work.
At the end of the year, the Supervisory Board of Intereuropa, d. d. gave its consent to the agreement on the transfer of
activities from the internal audit division to an external contractor, i.e. to the parent company Pošta Slovenije d. o. o., in
order to unify or harmonise the function of the support service within the Pošta Slovenije Group, effective 1 January 2021
inclusive.
01 / INTRODUCTION
31
INTEREUROPA / INTRODUCTION / 2020
1.8.7 DESCRIPTION OF THE MAIN FEATURES OF INTERNAL CONTROLS AND RISK
MANAGEMENT AT THE COMPANY IN CONNECTION WITH THE FINANCIAL REPORTING
PROCESS
The purpose of internal controls is to ensure the reliability of ﬁnancial reporting and compliance with valid laws, and other
external and internal regulations. Accounting controls are employed to manage the risks associated with the following:
• the credibility of accounting data: of primary importance are bookkeeping documents, as evidence of the existence of
business events, that clearly show the content and value of such transactions;
• the completeness of ﬁnancial data: this is ensured by the Company through precisely deﬁned record-keeping procedures
in internal acts, and through control over the functioning of such procedures;
• the accuracy of ﬁnancial data: this is ensured by the Company through a comparison of data in the information system with
data in the underlying bookkeeping documents; and
• the segregation of responsibilities in business processes and authorisations for work in the information system: the precise
and consistent deﬁnition of tasks and responsibilities of those involved in a speciﬁc business event.
When compiling the ﬁnancial statements of the Group and the notes thereto, risks are mitigated primarily through:
• the transparent organisational structure of the parent company and its subsidiaries;
• the consistent application of accounting principles and policies; and
• the observation of the timetable for the compilation of the ﬁnancial statements and the notes thereto.
The information system, with its built-in controls, also plays an important role. The authorisation system ensures that users
only execute those transactions in the information system for which they are authorised.
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INTEREUROPA / INTRODUCTION / 2020
1.8.8 INFORMATION REGARDING SIGNIFICANT DIRECT AND INDIRECT HOLDINGS OF THE
COMPANY’S SECURITIES IN TERMS OF ACHIEVING A QUALIFYING HOLDING, SPECIAL
CONTROLLING RIGHTS AND RESTRICTED VOTING RIGHTS, AND OTHER EXPLANATIONS
IN CONNECTION WITH LEGISLATION GOVERNING MERGERS AND ACQUISITIONS
1.8.8.1 Explanations regarding all restrictions on voting rights and regarding treasury shares
The Company’s share capital is divided into 27,488,803 shares broken down as follows: 16,830,838 ordinary registered
freely transferable no-par-value shares and 10,657,965 freely transferable no-par-value preference shares. The holders of
Intereuropa, d. d.’s ordinary shares are not subject to any restriction on voting rights. The Company has no voting rights
arising from its treasury shares in accordance with Article 249 of the Companies Act (ZGD-1). Intereuropa, d. d. held 18,135
treasury shares (IEKG) with a carrying amount of EUR 180,000 as at 31 December 2020, representing 0.1077% of ordinary
shares and 0.0660% of all shares. Intereuropa, d. d. did not purchase or sell treasury shares in 2020.
As at 31 December 2020, 118 ordinary shares were held on a special account of Kapitalska družba, d. d., which in accordance
with Article 48a of the Book-Entry Securities Act (Ofﬁcial Gazette of the Republic of Slovenia, No. 5/17) is intended for
securities waived by their holders and/or securities held by the Republic of Slovenia. Kapitalska družba may not exercise
the voting rights attached to those securities.
The holders of Intereuropa, d. d.’s preference shares have not been paid preference amounts since 2013, and have thus
held voting rights at the General Meeting of Shareholders since 2015 in accordance with paragraph 2 of Article 315 of the
ZGD-1. Accordingly, 27,470,553 shares out of a total of 27,488,803 shares had voting rights at the 34
th
General Meeting of
Shareholders held 27 August 2020, representing 99.9336% of the Company’s total shares.
1.8.8.2 Major direct and indirect holdings of the Company's securities in terms of achieving a
qualifying holding
The Company publishes information in a timely manner regarding the achievement of a qualifying holding, as set out in
the Takeovers Act, in the Ljubljana Stock Exchange’s electronic information system (SEOnet) and forwards that information
to the Securities Market Agency.
Pursuant to Article 105 of the Financial Instruments Market Act, which sets the thresholds for a signiﬁcant holding, direct
holders who hold more than 5% of voting rights are presented in Table 10.
TABLE 10: SHAREHOLDERS WHO HELD MORE THAN 5% OF VOTING RIGHTS AS AT 31 DECEMBER 2020
Shareholder
No. of ordinary
shares
31 December 2020
No. of preference
shares
31 December 2020
No. of voting
rights
31 December 2020*
Proportion of
voting rights
31 December 2020
Pošta Slovenije, d. o. o. 11,577,271 10,657,965 22,235,236 80.9%
* Pursuant to Article 315 of the ZGD-1, the holders of preference shares obtained voting rights in 2015 because the Company has not paid preference
amounts since 2013.
01 / INTRODUCTION
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INTEREUROPA / INTRODUCTION / 2020
1.8.9 STATEMENT OF COMPLIANCE WITH THE CORPORATE GOVERNANCE CODE
The Management Board and Supervisory Board of Intereuropa, Globalni logistični servis, d. d., Koper (hereinafter: the
Company) veriﬁed the compliance of the Company’s governance with the Slovenian Corporate Governance Code
(hereinafter: the Code), and hereby declare that the work and operations of the Company are in line with the Code,
with certain deviations that are explained in detail below. Despite already being planned for 2020, the Company did not
subsequently adopt the SDH Code as its reference code. The deviations emphasised below therefore only relate to the
Slovenian Corporate Governance Code.
Recommendation: The management board, together with the supervisory board, draws up and adopts a diversity policy
that is implemented with respect to representation on company’s management and supervisory bodies (point 4 of the
Code in its entirety).
Deviation: On 7 March 2019, the Management Board and Supervisory Board adopted the revised Corporate Governance
Policy of Intereuropa, d. d., which includes a policy governing the diversity of management and supervisory bodies. The
latter deﬁnes the target level of diversity in terms of age, education, other personal traits and gender, but does not deﬁne
the ratio between genders, the speciﬁc objectives of diversity or the impact on human resource and other processes at
the Company (points 4.2 and 4.3 of the Code).
Recommendation: A company must ensure an external assessment of the adequacy of its corporate governance statement
at least once every three years (point 5.7. of the Code)
Deviation: Intereuropa, d. d. was acquired by Pošta Slovenije, d. o. o. at the end of 2019. It is therefore expected that
Intereuropa, d. d. will soon cease to be a public limited company. For this reason, the Company decided that an external
assessment of the adequacy of its corporate governance statement for 2020 will not be carried out.
Recommendation: In the proposed new composition of the supervisory board for the general meeting of shareholders, all
candidates for members of the supervisory board must be independent. The recommendation to appoint independent
members applies to both shareholders and works councils. If the general meeting of shareholders or works council does
not follow recommendations regarding the appointment of independent members to the supervisory board, a company
must disclose this in its corporate governance statement (points 9.2 and 9.3 of the Code).
Deviation: At the General Meeting of Shareholders held on 30 December 2019, three members of the majority
shareholder’s executive management were appointed to serve as members of Intereuropa, d. d.’s Supervisory Board.
Recommendation: In addition to other matters, the rules of procedure of the supervisory board include a list of all
transactions for which the management board requires the prior consent of the supervisory board based on a supervisory
board resolution and the company’s articles of association, as well as a system for ordering the services of external experts
for the needs of the supervisory board, and the education and training of supervisory board members (point 12.2 of the
Code).
Deviation: The Rules of Procedure of the Supervisory Board were last reviewed and updated in 2018. The Supervisory
Board’s position during the most recent update of its Rules of Procedure was that a list of all transactions for which the
Management Board requires the prior consent of the Supervisory Board and a system for ordering the services of external
experts need not be included in those rules. Instead, the list of transactions for which the Management Board requires the
Supervisory Board’s prior consent is governed by a resolution adopted by the latter. Due to the negligible scope of the
outsourced services of external experts for the Supervisory Board, the latter believes that the inclusion of the management
and governance of a separate system solely for the Supervisory Board in that body’s Rules of Procedure is illogical. The
method and scope of the education and training of Supervisory Board members are set out in the General Meeting of
Shareholders resolution of 20 June 2014 and are not governed separately in the Rules of Procedure of the Supervisory
Board.
Recommendation: Once a year, the supervisory board deﬁnes a training plan for its members and the members of its
committees (point 13.1 of the Code).
Deviation: The Supervisory Board has not adopted a special training plan for its members for 2020. However, each
member may deﬁne an individual training plan in the scope of the annual allotment for training purposes. The Supervisory
Board will draft a systemic training plan for its members in 2021 that will also include training in the scope of the SDA or
SDH.
34
INTEREUROPA / INTRODUCTION / 2020
Recommendation: At least every three years, the supervisory board organises an external assessment in which it cooperates
with an institution or external experts with the requisite experience regarding the work of supervisory boards, in-depth
knowledge of corporate governance and the functioning of supervisory boards and their committees (point 14.4 of the
Code).
Deviation: The work of the Supervisory Board was not subject to an external assessment in 2020 nor will it be in 2021. On
30 December 2019, the General Meeting of Shareholders appointed new members to the Company's Supervisory Board.
The Supervisory Board has only been operating in its current composition for a year. A status change is also planned for
Intereuropa, d. d. in 2021. For this reason, the Company decided that an external assessment of the Supervisory Board for
2021 will not be carried out.
Recommendation: The performance criteria deﬁned by the supervisory board in connection with the variable component
of remuneration of management board members must also promote sustainable development and include non-ﬁnancial
criteria, such as compliance with the company’s valid rules and ethical standards (point 21.1 of the Code).
Deviation: The Supervisory Board includes non-ﬁnancial criteria in the performance criteria that serve as the basis for the
payment of the variable component of remuneration of Management Board members, but does not deﬁne separate
elements, such as compliance with the Company’s valid rules and ethical standards. It is the basic duty of Management
Board members to comply with the Company’s rules and follow the highest ethical standards. Thus, such conduct does
not require additional remuneration.
Recommendation: The company provides continuous information about its ﬁnancial position and legal status through
the publication of assessments of its performance, potential deviations from forecasts and changed operating conditions
(point 29.1 of the Code).
Deviation: The Company does not publish assessments of its performance, if that performance is in line with expectations.
If major deviations were to occur, the Company would publish an appropriate announcement.
Recommendation: The company publishes the rules of procedure of management and supervisory bodies and the
general meeting of shareholders on its website (point 29.9 of the Code).
Deviation: The Company has published the rules of procedure of the Supervisory Board, Audit Committee and General
Meeting of Shareholders. The Rules of procedure of the Management Board are not published, as the Company deems
them to be of an internal nature and they have no impact on the transparency of operations that would be of signiﬁcance
to investors or interested parties.
The Corporate Governance Code is accessible in Slovene and English on the websites of the Ljubljana Stock Exchange
(www.ljse.si) and the Slovenian Directors’ Association (www.zdruzenje-ns.si).
The statement of compliance with the Corporate Governance Code is an integral part of the 2020 annual report and is
published on the Company's website at www.intereuropa.si).
Intereuropa, Globalni logistični servis, d. d.,
Koper,1 March 2021
Marko Cegnar Marko Rems
President of the Management Board Vice-President of the Management Board
01 / INTRODUCTION
35
INTEREUROPA / INTRODUCTION / 2020
1.9 STATEMENT REGARDING NON-FINANCIAL OPERATIONS
Pursuant to Article 70c of the Companies Act, the Company has drafted a statement regarding non-ﬁnancial operations that
is required to understand the development, performance and position of the Company, and the impacts of its operations.
That statement includes information regarding personnel and social matters, environmental matters and energy efﬁciency,
and regarding corporate integrity. The latter includes information regarding respect for human rights, and matters relating
to the ﬁght against corruption and bribery. Detailed information regarding HR and social matters, and environmental
matters and energy efﬁciency are presented in section 3 Sustainable development.
1.9.1 BUSINESS MODEL
As a superior and leading provider of comprehensive logistics solutions in the Western Balkans, the Intereuropa Group
satisﬁes the needs of customers for logistics services and ensures the optimal functioning of supply chains for those
customers. This is achieved through the use of innovative approaches, ﬂexibility, the teamwork of highly trained employees,
a lean organisation and cost-efﬁciency. The Group also functions in a socially responsible manner, and creates value for
owners, employees and other stakeholders.
The range of logistics products is based on the development of three business lines, as follows: (1) land transport, which
relies on a broad base of subcontractors, the Group’s own extensive network in the countries of the Western Balkans and a
partner network in other European countries; (2) logistics solutions, the scope of which is based primarily on the warehouse
capacities of Group companies, qualiﬁed employees and outsourced labour; and (3) intercontinental transport.
The Intereuropa Group also aims to reduce its debt in the future and ﬁnance its operations through the optimal combination
of equity and debt sources, which it will achieve by increasing cash ﬂows from operating activities and the sale of non-
essential assets. As a member of the Pošta Slovenije Group, the Intereuropa Group will take advantage of the synergies in
both the business area and in Group ﬁnancing.
1.9.2 PERSONNEL AND SOCIAL MATTERS
1.9.2.1 Policy
The Company's business success relies on the knowledge and motivation of employees who are responsible for
operations at each company. Trends in the business environment require logistics companies to ensure a high level of
responsiveness, innovation and increasingly complex services, thereby encouraging the lifelong learning of employees,
which facilitates readiness for changes and the continuous search for improvements in their work.
Key employee competences that are systemically developed and assessed include the ability to achieve established
common objectives, excellent knowledge of one’s work area, self-initiative, responsibility, team work and ﬂexibility. By
implementing the measures from the plan to promote health, special attention is also given to the protection of the health
and safety of employees in the workplace.
In addition, the following elements for an integral part of Intereuropa's culture: ensuring the equal treatment of all
employees, the prohibition of any type of discrimination in the workplace, and the respect of dignity and human rights.
1.9.2.2 Results of policies, due diligence, indicators and risks
The Intereuropa Group regularly monitors the results of policies in the area of human resources. Data regarding the
employees of all Group companies are analysed every quarter, including the number of employees and other ﬂexible
forms of employment, employee turnover, organised education and training courses, absenteeism and the number of
work accidents, while the organisational climate is measured at Slovenian and Croatian Group companies every other
year. Key employee-related risks are also identiﬁed based on the aforementioned indicators and the necessary measures
implemented. In the scope of regular occupational health and safety activities, environmental measurements of work
conditions, inspections of work equipment, and inspections of buildings and ﬁre protection equipment are also carried
out. Those indicators are presented in more detail in section 3 Sustainable development on page 84.
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INTEREUROPA / INTRODUCTION / 2020
TABLE 11: NON-FINANCIAL INDICATORS REGARDING EMPLOYEES AT THE GROUP LEVEL
Indicator 2019 2020
Plan for
2021
No. of hours of functional training (seminars, courses, professional meetings, etc.)
per employee per year
9 6 11
Proportion of flexible forms of work (agency and student work) 15.4% 13.7% >10%
Improvement in assessments of the organisational climate of the employer (large
Group companies)*
3.16 3.2
Absenteeism rate due to sick leave in the Intereuropa Group 5.0% 4.4% up to 4.5%
Intereuropa, d. d. 5.9% 5.4%
Rate of workplace accidents** 0.9% 1.0%
less than
1.5%
* The measurement of the employer’s organisational climate is carried out every other year.
** Calculation: number of accidents / number of employees + agency workers + students.
Intereuropa recorded a decline in sick leave in 2020 at all large Group companies, with a planned absenteeism rate
due to sick leave at the Group level of up to 4.5%. The sick leave rate was down at the parent company for the second
consecutive year, by 0.5 percentage points in 2020 relative to 2019. Other Group companies continue to implement
activities in the scope of the plan to promote health with the aim of managing the aforementioned risks.
At less than 1.5%, the accident rate at the Group level in 2020 remained close to the level recorded in 2019.
The main HR-related risks remain the turnover of key and perspective employees and ensuring succession.
1.9.2.3 Objectives for 2021
The Intereuropa Group’s focus in 2021 with regard to employees will continue to be on activities to ensure the optimal
number of competent and motivated employees. It will continue to prepare a system for managing talents, which includes
the identiﬁcation of perspective employees and the development of their managerial and professional competences. It
will strive for the increased engagement of employees in training programmes, including employees in lower positions.
The implementation of activities focusing on management will be used to retain key and perspective employees. The
Group will also continue the implementation of planned measures for the promotion of health aimed at maintaining and
ensuring the health of employees.
1.9.3 ENVIRONMENTAL MATTERS AND ENERGY-EFFICIENCY
1.9.3.1 Policy
The Intereuropa Group takes into account prescribed legal norms and follows the guidelines set out in the Energy Act and
in European environmental guidelines. Energy efﬁciency and a responsible approach to the environment are integral parts
of the Group’s work processes and business decisions. The Intereuropa Group takes into account prescribed legal norms
and follows the guidelines set out in the Energy Act and in European environmental guidelines in its efforts to reduce
hazardous emissions into the environment, limit the loss of energy, and separate and recycle waste. The Intereuropa
Group ensures the energy efﬁciency of buildings and devices, the appropriate management of waste, the compliant
handling of hazardous cargoes, measures to reduce light pollution and the monitoring of waste water.
1.9.3.2 Results of policies, due diligence, indicators and risks
The Intereuropa Group has not established the systematic monitoring and review of environmental matters and energy
efﬁciency. There are likewise no indicators in place through which it could systematically monitor the results of policies.
These are monitored at the level of individual Group companies, and only for certain elements of energy efﬁciency and
speciﬁc impacts on the environment.
The transport activity is a major source of environmental pollution. One of the key criteria in the selection of road transport
service providers is thus the number and proportion of a subcontractor’s vehicles with environmentally friendly motors. Old
forklifts are being replaced with more modern and energy efﬁcient models, taking into account environmental impacts.
01 / INTRODUCTION
37
INTEREUROPA / INTRODUCTION / 2020
The Intereuropa Group is also directly reducing negative impacts on the environment in other business processes by
reducing paper administration, through various energy-saving measures in warehouses and commercial buildings, and
by raising awareness about the contribution of each individual to the preservation of the environment.
Concern for the environment and energy efﬁciency is passed on to all employees via internal communications.
The level of risks associated with inappropriate waste management and environmental pollution is assessed as low within
the Intereuropa Group. Exposure to those risks is controlled and mitigated through the inclusion of companies in national
waste management schemes, through the implementation of activities in the areas of energy efﬁciency and environmental
self-awareness, and through the implementation of waste and energy management plans at individual companies.
1.9.3.3 Objectives for 2021
The Intereuropa Group will continue to implement energy efﬁciency measures, and update and supplement existing
environmental management rules. It will follow a policy of gradually replacing old forklifts with models that are more
technologically and energy efﬁcient, install new and replace existing cooling and heating systems, purchase more efﬁcient
lighting and make other investments in order to reduce energy costs, increase the productivity of work equipment and
improve work conditions. The investment plan for 2021 envisages EUR 609 thousand for those purposes.
In addition to these investments, an energy review of buildings will be conducted in 2021 in accordance with the provisions
of the Energy Act.
1.9.4 CORPORATE INTEGRITY, HUMAN RIGHTS AND THE FIGHTS AGAINST CORRUPTION
1.9.4.1 Policy
Since 2014, the Company, in its role as a corporate integrity ambassador, encourages responsible business practices
through its model behaviour in accordance with legislation, other rules, and the applicable recommendations and internal
regulations, and operations in accordance with best business practices and ethical principles in the environment in which it
operates. The integrity of operations has been one of the key values of the Intereuropa Group for a number of years now.
The Intereuropa Group’s corporate integrity is based on the following principles:
• integrity as one of the core values of the Intereuropa Group’s operations;
• the expansion and development of corporate integrity from management on down; and
• the responsibility of every employee for corporate integrity.
The core document in this respect is the Code of Ethics, which deﬁnes the basic ethical values of the Intereuropa Group
such as fairness, conﬁdentiality, impartiality, compliance, responsibility and transparency. The Code of Ethics was translated
into English and into the majority of languages of the countries in which subsidiaries operate. It applies to employees and
customers that establish business contacts with Intereuropa Group companies. The code is accessible by customers and
employees on the companies’ website, and by the latter via an internal collection of the Company’s binding documents.
Other key documents in the area of the Group's corporate integrity are the Corporate Integrity Policy of the Intereuropa
Group, adopted in 2019, and the Rules on the Management of Conﬂicts of Interest, updated in 2020. The latter also sets
out rules limiting the acceptance of gifts and entertainment by the employees of Group companies.
The corporate integrity and compliance ofﬁcer is responsible for the area of corporate integrity within the Intereuropa
Group. The separate function of corporate integrity and compliance ofﬁcer ensures high ethical standards and the
responsible operations of the Group. The aforementioned ofﬁcer is independent in organisational terms and reports
directly to the Company’s Management Board. They also have the autonomous right of reporting to the Company’s
supervisory bodies. The corporate integrity and compliance ofﬁcer is responsible for the co-formulation of a policy,
rules and procedures for ensuring and monitoring corporate integrity, and for establishing internal controls for verifying
corporate integrity at Intereuropa Group companies.
Intereuropa Group companies comply with the law and international conventions, including provisions that relate to
human rights. Intereuropa Group companies oppose any form of forced labour, child labour or discrimination. Employees
are treated equally irrespective of their nationality, race or ethnic origin, national or social afﬁliation, gender, skin colour,
health status, disability, religion or other beliefs, age, sexual orientation, family status, trade union membership or material
standing, or other personal circumstances. Companies respect the dignity and personal integrity of the individual, and
their privacy and freedom to express their opinions. The employees of Group companies are committed to mutually
38
INTEREUROPA / INTRODUCTION / 2020
respectful relationships and respectful conduct towards third parties (customers, suppliers, etc.).
Intereuropa Group companies respect the rules of fair competition, and are committed to fair and open competition at
home and abroad. They reject all forms of corruption and bribery. Employees may not receive or give gifts in exchange for
the conclusion of a transaction or the receipt of any other type of beneﬁt. Employees are expected to conduct themselves
objectively, and prevent circumstances that could arise due to conﬂicts between the personal interests of an individual
and the interests of the Company.
The ‘Interžvižgač’ (Internal Whistleblower) is an Intereuropa Group application that has been receiving anonymous reports
of suspected violations since 2017. It is available 24 hours a day on the website: https://interzvizgac.intereuropa.si/ The
application is available in ﬁve languages: in addition to Slovene, English, Croatian, Bosnian, Serbian and Macedonian. A
link to the application is published on the websites of the subsidiaries. This ensures stakeholders are better informed of the
existence of the application and makes it easier for all employees and business partners of Intereuropa Group companies
to ﬁle reports.
In accordance with the Code of Ethics and sectoral rules, the Ethics Board, which is coordinated by the corporate integrity
and compliance ofﬁcer, is responsible for handling reports relating to breaches of integrity. The director of the Human
Resources and General Affairs Sector is responsible for reports in connection with HR-related breaches. The Ethics
Board drafts a report for the Management Board regarding the handling of reported breaches. That report includes
recommendations and/or proposed measures. The Ethics Board places special emphasis on protecting the anonymity of
bona ﬁde whistleblowers. It also monitors the resolution of reports relating to HR matters.
1.9.4.2 Results of policies, due diligence, indicators and risks
With regard to the development of the area of corporate integrity, activities continued in 2020 to ensure the protection of
personal data in accordance with the EU’s General Data Protection Regulation (GDPR) and the implementation of a system
for managing conﬂicts of interests, as well as the updating of the monitoring of received disclosures.
In order to ensure employees are informed, a separate tab was set up for the protection of personal data in 2020 in the
scope of sub-section Corporate integrity and compliance on the Company's intranet site, where all of the Company's
key documents governing the protection of personal data, useful links and key information relating to personal data
protection are posted. The site will be continuously updated in 2021.
Social responsibility was not assessed at Intereuropa, d. d. in 2020. In the past, the assessment of social responsibility
included an assessment of environmental impacts, an assessment of the rights of employees and human rights, and an
assessment of ethics and sustainable procurement.
Due to restrictions arising from the spread of the COVID-19 pandemic, live training events focusing on corporate integrity
were not held. Instead, video presentations were prepared on the importance and functioning of the Interžvižgač
application, the work of the Ethics Board, and on the prohibition and restriction on the acceptance of gifts. Infographics
were also prepared for employees in the scope of video presentations and key topics. Employees were continuously kept
abreast of corporate integrity topics through forwarded information and reminders, via emails and through infographics.
The Ethics Board met eight times in 2020. It discussed reports of breaches of integrity and was briefed on suspected
breaches of labour law. A total of 50% of received reports of suspected breaches related to the parent company, while
the remaining 50% related to one subsidiary.
The Company assesses the risks associated with breaches of human rights as low, as it primarily operates in an environment
where human rights are governed at the national level and the respect for those rights is appropriately monitored by
government institutions. All subsidiaries are located in areas that function under the aegis of the Council of Europe. The
majority of Intereuropa Group companies’ transactions are executed in European countries where respect for human
rights is at a high level. Notwithstanding the low level of risk that derives from the environment and sector in which
the Group operates, certain risks do exist, primarily in transactions in the intercontinental transport segment. Indications
of breaches include reports of breaches, inspection proceedings, labour law proceedings before the courts, strikes,
protests, the number of overtime hours in excess of legal limits, the number of workplace injuries, the inability to exercise
the right to annual leave, etc. No labour law-related proceedings were initiated before the competent labour court in
2020. Three inspections of employment relationships or controls of occupational health and safety were conducted at
three Group companies in 2020.
01 / INTRODUCTION
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INTEREUROPA / INTRODUCTION / 2020
The Intereuropa Group operates on markets where there is an increased level of corruption and in a sector that is more
exposed to acts of corruption. Risks associated with acts of corruption exist primarily on three levels. The ﬁrst risks comprise
the risk that suppliers or customers bribe employees to gain more favourable terms and the second risks comprise the risk
of losing major business due to the corrupt actions of competitors, while the third risks comprise the risk that employees
might act contrary to the interest of the Company to their own beneﬁt.
With regard to the ﬁrst risk, the Intereuropa Group implements periodic measures to raise awareness and educate
employees. At the same time, the ‘Interžvižgač’ (Internal Whistleblower) application was established and is accessible
on the websites of Group companies for the anonymous reporting of corrupt acts and other breaches. With regard to
the second risks, Intereuropa cannot inﬂuence the actions of third parties. However, the Intereuropa Group’s position
in this regard is clear and unwavering. Group companies do not support corrupt acts, even if this might mean the loss
of business. With regard to the third risks, the Company began to put in place a system for the monitoring of fraud
in 2020, which is expected to be expanded to the entire Group in 2021. Indications of risk associated with fraud and
corruption include reports and the identiﬁcation of breaches via internal controls performed by an individual company
and controls performed by the parent company. One report of the suspicion of corruption was received in 2020. During
the processing of that report, it was determined that it was unjustiﬁed. No incidents of fraud were identiﬁed in the scope
of regular controls.
1.9.4.3 Objectives for 2021
In terms of corporate integrity, Intereuropa plans to continue the project concerning the fraud management system in 2021 and
expand it to all Group companies.
The fraud risk management project is designed to identify inherent risks of fraud, which are speciﬁc to the sector in which the
Intereuropa Group operates and differ in terms of intensity, depending on the region of operation of a particular company. The
project focuses on limiting fraud risks and mitigating the subsequent potential consequences of a case of fraud, the review of
organisational procedures, the organisation of continuous and periodic internal controls and the training of employees on the
identiﬁcation of fraud, the avoidance of fraud or the appropriate communication according to planned protocols of conduct
and the implementation of measures if a case of fraud is identiﬁed.
In 2021, Intereuropa, d. d. will also give special attention to the training of employees, which has been halted to some degree
due to the uncertain circumstances last year.
The Company will persevere in clear matters regarding the respect of human rights.
Management Board of Intereuropa, d. d.
Koper, 1 March 2021
Marko Cegnar Marko Rems
President of the Management Board Vice-President of the Management Board
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INTEREUROPA / INTRODUCTION / 2020
1.10 EXPLANATION IN ACCORDANCE WITH ARTICLE 545 OF THE ZGD-1
Intereuropa, d. d. is a subsidiary of Pošta Slovenije, d. o. o. In light of the above, Intereuropa, d. d. is obliged to draft
a report regarding relations with afﬁliates in accordance with Article 545 of the Companies Act. In the circumstances
known at the moment a legal transaction was executed, or an act committed or omitted, the Company must include an
explanation in the business report of whether it received the appropriate consideration in each such transaction or did not
suffer any deprivation on account of a committed or omitted act.
In accordance with Article 545 of the ZGD-1, the Company drafted the report on relations with afﬁliates indicating all the
legal transactions that the company concluded with the controlling company or any undertaking related thereto in the
previous ﬁnancial year, at the initiative of or in the interest of these companies, and all other acts that were committed or
omitted at the initiative or in the interest of these companies in the previous ﬁnancial year.
The Management Board of Intereuropa, d. d. hereby explains that the Company did not suffer any deprivation on account
of the transactions and acts presented in the report on relations with afﬁliates.
Pursuant to Article 546 of the ZGD-1, the auditor audited the report on relations with afﬁliates. The auditor had no comments
regarding that report and conﬁrmed:
• that the statements in the report on relations between associated companies for the year ended 31 December 2020 are
accurate in all material respects;
• that the value of the Company’s legal transactions stated in the report is not disproportionately high given the circumstances
that were known at the time the legal transactions were executed; and
• that there are no circumstances relating to other acts stated in the report that would suggest a substantially different
assessment of deprivation than the one given by the management.
In accordance with Article 546a, the Supervisory Board was briefed on the report on relations with afﬁliates and on the
auditor's opinion on the report, and had no comments on the Management Board's statement regarding relations with
afﬁliates.
01 / INTRODUCTION
41
INTEREUROPA / INTRODUCTION / 2020
02
Business
Report
02 BUSINESS REPORT
2.1 DEVELOPMENT STRATEGY OF THE INTEREUROPA GROUP
The strategic development programme of the Intereuropa Group, which outlines the policies for the development of the
Intereuropa Group until 2025, was adopted in December 2020.
The long-term development of the Intereuropa Group is based on its outlined vision, mission and values. The Intereuropa
Group focuses on the development and specialisation of logistics products, the strengthening of its own business network
on existing markets, and on the optimisation of business processes and the exploitation of the synergistic effects of the
coordinated operations of Group companies and of the Pošta Slovenije Group. The Intereuropa Group is capable of
implementing even the most complex logistics projects, tailored to the needs and expectations of customers.
VISION
Our vision is to be a superior provider of comprehensive logistics solutions.
MISSION
To satisfy the need for logistics services and ensure the optimal functioning of supply chains to the complete satisfaction
of customers, while creating value for the owner, employees and other stakeholders in a socially responsible manner.
VALUES
Integrity.
Respect for the highest ethical principles and best business practices. Operations
in compliance with applicable legislation, guidelines, recommendations and the
Company’s internal rules.
Excellence.
The Group’s services are geared towards the superior satisfaction of every
customer’s needs for logistics services, and are based on our advanced logistics
know-how.
Adaptability and
ﬂexibility.
The Group’s services are prompt and tailored to the needs of customers. This is
achieved by applying innovative approaches and ensuring a lean organisational
structure.
Responsibility.
The Group is distinguished by a high level of responsibility for the obligations we
undertake, the agreements we conclude, and the social and natural environments
in which we operate.
Teamwork and a
respectful approach to
employees.
The quality of the Group’s services is the result of the work of individuals and
top-notch expert teams. The diverse knowledge, experiences and views of our
employees are highly valued.
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INTEREUROPA / BUSINESS REPORT / 2020
KEY STRATEGIC POLICIES
Consolidation of our market position in logistics
• Corporate governance of operational business processes of the Intereuropa Group subsidiaries within the Logistics
Division.
• Focus on products with higher value added (3PL, groupage and logistics solutions).
• Development on fast-emerging markets in the region.
• Strengthening the range of comprehensive logistics solutions.
• Growth based on aggressive marketing and an increase in capacities via the rental model (transition to the asset light
model).
• Taking advantage of the synergies between Intereuropa Group companies (Logistics Division) and the Pošta Slovenije
Group.
Optimisation of processes
• Updating key warehousing capacities.
• Utilisation of IT support for processes.
• Taking advantage of the synergies between Intereuropa Group companies (Logistics Division) and the Pošta Slovenije
Group.
Development of culture
• Teamwork.
• Rewarding of effectiveness.
• Internal development of middle and senior management.
Financial stability
• Divestment of non-core real estate and non-strategic real estate, where substitute capacities will be built.
• Effective management of working capital.
• Financing in the scope of the Pošta Slovenije Group.
TABLE 12: STRATEGIC OBJECTIVES OF THE INTEREUROPA GROUP IN 2025
Indicator Strategy until 2025
Sales revenue EUR 201.5 million
EBITDA
1
EUR 22 million
Operating profit (EBIT) EUR 9.6 million
No. of employees at the end of the year 1,448
1
Alternative performance measure (APM), deﬁned in the section ‘Alternative performance measures’ in Table 23 on page 70.
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INTEREUROPA / BUSINESS REPORT / 2020
2.2 IMPLEMENTATION OF PLANS IN 2020
The following business and ﬁnancial objectives were set for the Intereuropa Group in the revised business plan for 2020,
which was required due to the consequences of the COVID-19 epidemic and adopted on 9 July 2020:
• to generate net sales revenue of EUR 139.5 million, which is EUR 20.7 million less relative to 2019. The strengthening of
cooperation with customers that require integrated logistics solutions through the entire supply chain in the region, an
emphasis on the development and expansion of the partner and agent network, and the securing of new business remain
key sales activities;
• to successfully control direct costs and the sales margin through the active management of the costs of direct services via
more favourable purchasing terms, in particular on account of the centralisation of certain procurement functions;
• to generate EBITDA of EUR 10.1 million and an operating proﬁt (EBIT) of EUR 2.6 million. The planned values of EBITDA and
EBIT for 2020 are lower than the target values for 2019, for the most part as the result of the foreseen drop in revenues as
the consequence of the COVID-19 epidemic.
• to ensure ﬁnancial stability and reduce debt, despite the adverse economic conditions, through the divestment of real
estate that is not used in the performance of the logistics activity.
The Intereuropa Group generated sales revenue in the amount of EUR 150.7 million in 2020, and thus exceeded the
planned ﬁgure by EUR 11.3 million or 8%. All Group companies except for two small subsidiaries in Slovenia and one
in Montenegro recorded ﬁgures that were higher than planned revenue. The planned ﬁgures were exceeded by
all business lines, most in absolute terms by the land transport business line with its road transport product. Within the
intercontinental transport business line, planned ﬁgures were exceeded most by the sea freight and air freight segments.
Please refer to section 2.5 Marketing and sales for a more detailed overview and analysis of sales results by business line
and service category, and by individual market of the Intereuropa Group.
The Intereuropa Group generated EBITDA of EUR 12.3 million in 2020, which was 21% higher than planned. Contributing
signiﬁcantly to the higher-than-planned EBITDA in 2020, in addition to higher-than-planned sales revenue, was higher-
than-planned other operating revenues (up EUR 0.7 million on the plan), which was primarily the result of revenues from
the reversal of non-current provisions in the amount of EUR 0.3 million. On the other hand, labour costs were also higher
than planned.
The Intereuropa Group generated a net proﬁt of EUR 3.6 million in 2020, which was 184% or EUR 2.3 million higher
than planned. In addition, the higher-than-planned net proﬁt was also attributed to lower depreciation costs due to an
extension of the lifecycle of real estate on the basis of an assessment in 2020, while the loss from ﬁnancing activities was
worse than planned, primarily as the result of higher negative exchange rate differences.
The Group ensures the effective management of working capital, primarily through the active management of trade
receivables, the regular veriﬁcation of customers’ credit ratings and the continuous monitoring of exposure to individual
customers.
The Group’s net debt was reduced by EUR 10 million in 2020, and amounted to 44.4 million at the end of the year,
which was EUR 3.8 million less than planned. This was mainly attributed to an increase in the balance of cash and cash
equivalents. Contributing signiﬁcantly to the latter was the conclusion of annex 1 to a loan agreement with a syndicate of
banks, through which the parent company deferred the payment of principal and interest for one year in order to mitigate
the consequences of the COVID-19 pandemic and strengthen its liquidity position. The net debt / EBITDA ratio was 3.6
in 2020.
The Intereuropa Group made investments in 2020 in the amount of EUR 2.1 million, representing 31% of the annual
investment plan. A total of EUR 0.6 million was invested in real estate, while EUR 1.5 million was invested in equipment and
intangible assets.
The Group had a total of 1,337 employees at the end of 2020, which is 1.5% less than planned and 1.4% less than the
number of employees at the end 2019.
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2.3 OBJECTIVES AND BUSINESS PLANS FOR 2021
2.3.1 POINTS OF DEPARTURE OF THE BUSINESS PLAN
While drafting the business plan for 2021, the Intereuropa Group took into account the starting position of the Group as
a whole at the end of 2020, as well as trends in the logistics sector and forecasts of economic trends on the Group’s key
markets.
TABLE 13: FORECASTS OF ECONOMIC TRENDS ON THE INTEREUROPA GROUP’S KEY MARKETS (IN %)
Country
GDP growth Inflation
Growth in
merchandise imports
Growth in
merchandise exports
2020 2021 2020 2021 2020 2021 2020 2021
EU -7.6 5.0 0.5 1.3 -10.5* 7.5* -11.5* 8.1*
Slovenia -6.6 4.3 -0.9 1.6 -12.9 9.4 -8.9 6.7
Croatia -9.0 6.0 0.2 0.9 -39.8 32.2 -28.7 16.2
Bosnia and
Herzegovina
-6.5 5.0 -0.8 0.4 -6.6 10.1 -7.1 9.1
Serbia -2.5 5.5 1.6 2.0 -5.1 12.4 -6.3 7.7
Kosovo -7.5 6.0 1.5 1.2 -2.2 13.6 -4.3 17.7
Montenegro -12.0 5.5 -0.4 0.9 -37.4 17.8 -20.9 13.0
North Macedonia -5.4 5.5 1.0 1.4 -12.8 8.3 -15.8 8.0
Albania -7.5 6.1 1.2 2.2 -25.3 12.1 -5.7 12.2
Ukraine -7.2 3.0 5.2 5.8 -7.0 12.4 -4.0 5.5
* Data for the euro area.
Sources:
• International Monetary Fund, World Economic Outlook Database, October 2020;
• Institute of Macroeconomic Analysis and Development, Winter forecast of economic trends in 2020, December 2020.
2.3.2 BUSINESS AND FINANCIAL OBJECTIVES
Taking into account the aforementioned points of departure, the following business and ﬁnancial objectives were set for
the Intereuropa Group for 2021:
• to generate EUR 158.5 million in sales revenue through growth in all business lines of the core activity, on all markets (except
the Ukraine) and at the majority of companies;
• to strengthen cooperation with customers that require integrated logistics solutions through the entire supply chain in the
region, to increase emphasis on the development and expansion of the partner and agent network, to actively secure new
business (cross selling), and to increase the proportion of ‘regular’ customers;
• to control direct costs and the sales margin in the context of growth in sales, through the active management of the costs
of direct services via a standard procurement policy at the Group level;
• to generate EBITDA of EUR 12.9 million and an operating proﬁt (EBIT) of EUR 5.1 million;
• to ensure ﬁnancial stability and reduce debt through the divestment of real estate that is not used in the performance of
the logistics activity.
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The following will be necessary to achieve the above-described objectives:
• investments of EUR 8.4 million in property, plant and equipment and intangible assets, primarily in the upgrading and
renovation of the warehousing infrastructure and warehouse equipment, in the upgrading of IT equipment and in
intangible assets;
• to ensure the optimal number of competent and motivated employees;
• investments in the effective development of employees, and the implementation of a systematic plan of measures to
ensure health and well-being within the Intereuropa Group;
• to maintain the proportion of ﬂexible forms of employment at a minimum of 10% for the optimal adjustment in the number
of employees to actual work needs;
• the continued centralisation of IT management within the Group and the implementation of shared IT solutions;
• the continued promotion of corporate integrity and compliance at all Group companies, crucial in this regard is the project
to implement the project to introduce fraud management;
• the continued intensive identiﬁcation of risks to which Group companies are exposed and the management of those
risks, with a greater emphasis on monitoring the success of measures and setting and monitoring key objectives and
performance indicators in relation to risk management;
• to ensure the cost-effectiveness of support functions for the performance of logistics processes;
• the effective management of working capital; and
• the implementation of activities aimed at the sale of assets not required for business purposes.
TABLE 14: MAIN FINANCIAL OBJECTIVES OF THE INTEREUROPA GROUP IN 2021
Indicator 2021 plan
Sales revenue EUR 158.5 million
EBITDA¹ EUR 12.9 million
Operating profit (EBIT) EUR 5.1 million
Investments in property, plant and equipment, and intangible assets EUR 8.4 million
No. of employees at the end of the year 1,313
1
Alternative performance measure (APM), deﬁned in the section ‘Alternative performance measures’ in Table 23 on page 70.
2.4 ECONOMIC CONDITIONS IN 2020 AND FORECASTS FOR 2021
Due to the outbreak of the COVID-19 virus, which spread across Europe in March 2020, and the global pandemic, likewise
declared in March 2020, the global economy sustained major economic damage in 2020.
According to estimates of the International Monetary Fund (IMF) from January 2021, the global economy recorded an
economic decline of 3.5% in 2020. Projections of global economic growth for 2021 are more encouraging at 5.5%, with
recovery mostly expected in the second half of 2021, and a 4.2% forecast for next year. However, the projections are
extremely uncertain due to the possibility of new waves of the pandemic and new virus mutations, despite the fact that
recent vaccine approvals bring hope for altering the course of the pandemic.
The COVID-19 epidemic had a negative impact in the euro area on all components of gross domestic product in the ﬁrst
half of 2020. The decline in GDP is estimated at 7.5%. Private consumption was hit hardest, as consumption in the spring
was severely disrupted, which led to the accumulation and strengthening of forced savings. Due to the paralysis of the
corporate sector and the sharp increase in uncertainty, investments also declined signiﬁcantly. After the sharp decline in
the second quarter, economic activity recovered in the third quarter in the context of the gradual easing of containment
measures and substantial support from monetary and public ﬁnance policy, but that recovery was halted towards the
end of the year due to the second wave of the epidemic, a rapid increase in infections in October and the resulting
re-introduction of stringent containment measures. According to the data of the Slovenian Institute of Macroeconomic
Analysis and Development, economic recovery (3.5% growth) is forecast for this year in the euro area, with an even more
optimistic forecast from the International Monetary Fund of 5% growth.
Economic activity in Slovenia was also hit hard by the COVID-19 epidemic. Strict measures
to contain the spread of the coronavirus caused a signiﬁcant decline in economic activity due to the shut-down of non-
urgent service activities and the hampered activities of other service sectors and industry. Despite a recovery in the
majority of sectors in the third quarter following the easing of most protective health measures, economic activity over
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INTEREUROPA / BUSINESS REPORT / 2020
the ﬁrst nine months of the year was 6% below the level recorded in 2019. Extensive packages of measures focusing on
the mitigation of the loss of income by the corporate and household sectors, the securing of liquidity and support for
economic recovery, were adopted in order to mitigate the negative consequences of the epidemic. These continue to
supplement and signiﬁcantly mitigate the decline in economic activity and are crucial for rebooting economic activity.
In its winter forecast for 2020, the Slovenian Institute of Macroeconomic Analysis and Development projected a 6.6%
decline in GDP in 2020. According to available high-frequency data and conﬁdence indicators for October and November,
it was assessed for the ﬁnal quarter that the economic effects of the second wave of the epidemic and the extensive
protective and containment measures primarily focus on the services sector and to a lesser degree on sectors engaged in
international trade. The decline in most segments was less severe than in the spring. Contributing to this were adjustments
made by businesses and consumers to the new situation. A slightly less signiﬁcant but still notable factor was a decline
in the transport, wholesale and retail trade and manufacturing sectors. A sharp decline in the volume of exports and
imports was felt due to negative impacts from the international environment and from foreign and domestic containment
measures. Due to a drop in demand and in the context of high uncertainty, which affects the investment decisions of
companies, the latter are also contracting their investments. Public investments are increasing slightly. Declining inventories
also have a signiﬁcant negative impact on GDP growth. Due to this trend and supply during the lockdown when there
was little opportunity to spend, accompanied by increased uncertainty and precautionary savings, private consumption is
also declining sharply despite the level of disposable income being similar to last year as a result of government support
measures. Government consumption is strengthening during the crisis.
In the current epidemiological conditions, the Institute of Macroeconomic Analysis and Development assessed that a
more rapid economic recovery will be possible from the second quarter of 2021 on, while overall economic activity will
not reach the pre-epidemic level until 2022. Economic growth is forecast to reach 4.3% in 2021. The epidemiological
conditions, the speed of introducing vaccines and the responsiveness of policies with measures to mitigate the effects
of the epidemic and kick start the economy will continue to have a crucial effect on the pace of recovery. Growth in
international trade and investments is expected in 2021, including an increase in private consumption in the context of
growth in disposable income, while the savings ratio will gradually decline but remain high due to uncertainty. Economic
growth is expected to reach 4.4% in 2022 in the context of the gradual stabilisation of the economic situation.
The decline in economic activity and reduced demand last year also impacted price trends, with a gradual increase in
prices not expected before this year. The overall price level is expected to stagnate on average primarily on account of
lower energy prices, while growth in the prices of most other goods and services has also slowed relative to previous
years. The inﬂation rate is expected to approach 2% in 2022. Contributing to this will be higher growth in service prices as
a result of the continued recovery.
According to the assessment of the International Monetary Fund, the Croatian economy recorded a 9% drop in GDP. That
country’s economy was hit hardest in the second quarter, but then recovered slightly in the third quarter. The most notable
contraction was felt by industrial production, with the unemployment rate falling evenly, while the crucial tourism sector
also began to contract. With the increasing number of COVID-19 infections and the introduction of stricter measures by
the government, the situation deteriorated in October, most notably in the industrial and retail trade sectors. The revival of
foreign demand and strengthening of domestic activity are expected in 2021. The uncertainty surrounding the epidemic
and its effect on the tourism sector poses a key risk to the economic outlook. Focus Economics forecasts 5% growth, while
the International Monetary Fund forecasts 6% growth for the Croatian economy in 2021.
The International Monetary Fund forecasts a 2.5% decline in gross domestic product for the Serbian economy in 2020.
After contracting in the second quarter, industrial production recorded notable growth in the third quarter of the year.
Retail sales, characterised by a downward trend in the second quarter, recorded solid growth in July and September. The
decline in tourist arrivals was less pronounced during the summer months than in the second quarter of the year. As long as
there is no renewed deterioration due to the COVID-19 epidemic, strengthened domestic and foreign demand due to
the reopening of the global economy is expected in 2021. Focus Economics forecasts 4.9% growth, while the International
Monetary Fund forecasts 5.5% growth for the Serbian economy in 2021.
Measures introduced in Montenegro to curb the COVID-19 epidemic signiﬁcantly hampered its economy. Retail trade
was hit even harder in the third quarter than in the second quarter, while the unemployment rate continued to grow.
Industrial production contracted further in the third quarter, while the decline in merchandise exports was signiﬁcant.
With the risk of the progression of the COVID-19 epidemic, the best-case scenario after the reopening of the global
economy sees strengthened foreign trade and the recovery of the household sector. The International Monetary Fund
forecasts 5.5% growth in the Montenegrin economy in 2021, while Focus Economics goes beyond that with a forecast of
6% growth.
After contracting sharply in the second quarter, the economy in Bosnia and Herzegovina gradually recovered in the
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third quarter of the year. The pace of contraction in industrial production slowed, while retail sales gradually increased in
September after declining over the ﬁrst six months of the year. Companies operating in sectors that were hit hardest were
provided ﬁnancial aid by the government. The outlook for 2021 is better if no new measures to contain the spread of
the epidemic are planned. Focus Economics forecasts 3.9% growth, while the International Monetary Fund forecasts 5%
growth for the economy in Bosnia and Herzegovina in 2021.
The economy in North Macedonia saw a decline in 2020 due to the COVID-19 epidemic, which was most notable in the
ﬁnal quarter, as the government introduced new restrictions in October. Retail sales contracted signiﬁcantly, while the
most notable decline in industrial production was recorded in July and September. The economy is expected to recover
in 2021 if the extension of the health crisis does not hamper a recovery. Household consumption is expected to recover
and is supported by ﬁscal stimulus packages. The increase in global demand is expected to stimulate foreign trade. The
International Monetary Fund forecasts 5.5% growth, while Focus Economics forecasts 5.4% growth.
The economy in Kosovo remained in a difﬁcult situation in the third quarter after a strong contraction in gross domestic
product in the second quarter of the year. Due to the growing number of COVID-19 infections, the government restored
certain containment measures at the beginning of July (easing them somewhat in September), which impacted economic
activity in the third quarter of the year. Merchandise exports decreased during this period, while imports grew slightly,
which was a reﬂection of unchanged domestic demand. The growing number of consumer loans was a positive indication,
while the inﬂow of transfers increased in July and August, which together with falling prices strengthened household
consumption. The economy in Kosovo is expected to recover rapidly in 2021. The reopening of the economy should relax
planned spending and capital expenditure. In addition, increased foreign demand should support foreign trade. Despite
this, the outlook remains susceptible to risk due to the progression of the COVID-19 epidemic. Focus Economics forecasts
4.8% growth, while the International Monetary Fund forecasts 6% economic growth.
The Albanian economy recovered slightly in the third quarter, but remains devastated from the lockdown measures
introduced at home and abroad in the second quarter of 2020. Despite the continued decline in merchandise imports
and exports in the third quarter, the pace of that decline slowed relative to the second quarter. Similarly, tourist arrivals
increased during the summer and declined at a slower pace on an annual basis compared with the standstill during the
spring months. The recovery of domestic and foreign demand and an increase in investments to support post-epidemic
recovery are expected in 2021. The greatest risks to the economic outlook, which Focus Economics and the International
Monetary Fund assess at 6% growth, are the unpredictable course of the epidemic and the government's fragile ﬁscal
position.
The economic activity in the Ukraine recovered slightly in the third quarter after active measures were implemented to
contain the COVID-19 epidemic in the second quarter. Primarily industrial production and the production of energy were
lower. Growth in retail sales recovered in the third quarter and, despite the persistence of weak consumer sentiment,
the outlook for household consumption is positive. The increase in the number of infections, particularly in October,
prompted the government to extend measures to contain the epidemic until the end of the year, which hampered
recovery in the last quarter. A gradual recovery in both foreign and domestic demand is expected in 2021, while ﬁscal and
monetary incentives also represent further support for the corporate sector. However, the continuation of the epidemic
and weaknesses in the banking system pose risks to the realisation of the forecasts of a 3 to 4.2% growth in 2021.
All Focus Economics forecasts for the countries of Southeast Europe were prepared in November 2020, and foresaw the
winter second wave of the COVID-19 epidemic in 2021 as no more than a risk of failing to achieve projected economic
growth.
The section Economic conditions in 2020 and forecasts for 2021 is summarised from the following publications:
Institute of Macroeconomic Analysis and Development, Winter forecast of economic trends in 2020, December 2020;
International Monetary Fund, World Economic Outlo-ok Database, October 2020;
International Monetary Fund, World Economic Outlook, January 2021; and
Focus Economics, Economic Data by Region and Country, November 2020.
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2.5 MARKETING AND SALES
The Intereuropa Group generated EUR 150.7 million in revenues from sales of its services in 2020, a decrease of 6% relative
to the previous year, while the subsidiaries in Serbia, Ukraine and North Macedonia exceeded last year's sales revenue.
The parent company generated EUR 104 million in sales revenue in 2020, a decrease of 7% relative to the previous year.
Sales at the subsidiaries in Bosnia and Herzegovina, Montenegro and Kosovo were down relative to the previous ﬁnancial
year. The Intereuropa Group's lower sales revenue was primarily the result of the COVID-19 pandemic.
At 52%, the highest proportion of the Intereuropa Group’s sales revenue in 2020 was accounted for by the land transport
segment, which generated EUR 77.8 million in sales revenue, a decrease of 9% relative to 2019. The decline in sales
revenue in the land transport segment was primarily attributed to the COVID-19 pandemic and a drop in energy prices,
which was reﬂected in both lower selling prices and lower purchase prices. The greatest decline in absolute terms was
seen in road transport services at the parent company.
Sales revenue in the intercontinental transport segment totalled EUR 39.2 million in 2020, a decrease of 6% relative to
the previous year. The intercontinental transport segment accounted for 26% of total sales revenue. The decrease in sea
freight services was mostly the result of the COVID-19 pandemic and the resulting decline in the volume of freight and
the suspension of container ships. On the other hand, the COVID-19 pandemic has had a positive impact on growth in
air freight services.
Sales revenue in the logistics solutions segment totalled EUR 27.8 million in 2020, and was up by 4% relative to the previous
year and accounted for 18% of the Group’s total sales revenue. Primarily at companies in Slovenia, Croatia and Serbia,
warehousing transactions were reviewed and numerous activities were implemented to utilise warehouse capacities and
secure new transactions with higher value added.
TABLE 15: SALES REVENUE OF THE INTEREUROPA GROUP IN 2020 BY BUSINESS LINE
Business line
2020 in EUR
thousand
Structure
Index 2020/
plan
Index
2020/2019
Land transport 77,769 52% 108 91
Logistics solutions 27,757 18% 107 104
Intercontinental transport 39,184 26% 111 94
Other services 6,016 4% 98 87
TOTAL SALES REVENUE 150,725 100% 108 94
Companies in Slovenia generated 67% of the Group’s total sales revenue.
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TABLE 16: SALES REVENUE OF THE INTEREUROPA GROUP IN 2020 BY COUNTRY (WITH RESPECT TO A COMPANY’S HEAD OFFICE)
Country 2020in EUR thousand Structure Index 2020/2019
Slovenia* 100,456 67% 92
Croatia 23,831 16% 99
Bosnia and Herzegovina 6,946 5% 98
Serbia 5,279 4% 104
Montenegro 4,984 3% 79
Ukraine 3,992 3% 108
Other countries 5,237 3% 100
EU countries 124,287 82% 93
Non-EU countries 26,438 18% 96
TOTAL SALES REVENUE 150,725 100% 94
* Data include consolidation restatements.
FIGURE 3: STRUCTURE OF SALES REVENUE OF THE INTEREUROPA GROUP BY COUNTRY IN 2020 (WITH RESPECT TO A CUSTOMER’S HEAD OFFICE)
Slovenia 41%
Croatia 14%
Luxembourg 5%
Austria 4%
Germany 4%
Bosnia and Herzegovina 4%
Serbia 3%
Montenegro 3%
Italy 3%
Kosovo 2%
Switzerland 1%
Israel 1%
Slovakia 1%
Ukraine 0%
Other countries 14%
In terms of size, sector and geographical coverage, the structure of customers is very diverse, particularly in the EU and
the Balkans and was little changed relative to 2019. A total of 66% of customers in 2020 were from EU countries, with the
majority of those from Slovenia and Croatia. A total of 13% of customers were from other countries of the former Yugoslavia
(excluding Slovenia and Croatia).
Given the extensive base of existing customers for whom the Intereuropa Group provides services, market activities
focus on the expansion of cooperation in other product categories (cross-selling) and on other markets. To that end,
the expansion of the usage of the CRM system to the Group's subsidiaries in 2020 is important and facilitates a more
focused market approach and the monitoring of customers’ development. Another strategic focus is the provision of
more complex logistics solutions with higher value added, thereby taking advantage of the competitive advantages of
the Intereuropa Group, such as a comprehensive portfolio of products and services, the professional qualiﬁcations of
employees and a broader regional presence.
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2.5.1 LAND TRANSPORT
The Intereuropa Group recorded lower sales revenue in most segments of land transport in 2020 relative to the previous
year. Lower sales were primarily the result of containment measures to curb the COVID-19 pandemic in Europe. The
Intereuropa Group generated EUR 77.8 million in sales revenue in the land transport segment in 2020, a decrease of 9%
relative to 2019.
All segments, except for the railway freight segment, particularly after attracting new business in the Ukraine, lagged
behind last year's revenues.
The highest proportion or 55% of the total revenues of the land transport segment was generated by the parent company
in Slovenia, which generated sales revenue of EUR 45.8 million in 2020. Sales revenue at the parent company was down
by 12% relative to 2019. Last year's sales revenue was exceeded by the companies in Bosnia and Herzegovina, Ukraine,
Serbia and North Macedonia.
In addition to the COVID-19 pandemic, lower sales revenue in 2020 was also the result of a fall in energy prices. The impact
of lower energy prices, which had a signiﬁcant effect on declining revenues, did not impact sales margins, as the purchase
prices of transport services were adjusted accordingly due to lower fuel prices.
Changes in the disclosure of products due to the optimisation of implementing processes and the continued introduction
of the standardised WexVS IT solution in the warehousing and storage segment continued to impact the sales results of the
land transport segment. In 2020, those changes were seen primarily in the reclassiﬁcation of sales of customs, groupage
and domestic transport services to the distribution product within the logistics solutions segment.
The Group’s key policies in the land transport segment remain intensive sales activities on local markets and abroad, and
on cross-selling with existing customers. At the end of 2020, intensive preparations for Brexit were carried out within the
customs clearance segment aimed at satisfying increased demand for customs services on the market. The introduction of
new IT solutions to support marketing and operational work at all Group subsidiaries will facilitate increased effectiveness
in the implementation of processes in all land transport segments.
FIGURE 4: STRUCTURE OF SALES REVENUE OF THE INTEREUROPA GROUP BY COUNTRY IN THE LAND TRANSPORT SEGMENT (WITH
RESPECT TO A COMPANY’S HEAD OFFICE)
Slovenia 55%
Croatia 21%
Bosnia and Herzegovina 6%
Serbia 3%
Montenegro 3%
Ukrajine 5%
Other Countries 6%
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FIGURE 5: STRUCTURE OF SALES REVENUE OF THE INTEREUROPA GROUP BY INDIVIDUAL PRODUCT IN THE LAND TRANSPORT SEGMENT
Road transport 49%
Customs services 8%
Railway transport 6%
Groupage services 21%
Domestic transport 16%
2.5.1.1 Road transport
Sales revenue from road transport services amounted to EUR 38.1 million in 2020. The road transport segment generates
one half of the Intereuropa Group’s sales revenue.
The parent company generated 72% of all sales revenue in the Group's road transport segment.
2.5.1.2 Groupage services
The sales revenue generated by groupage services amounted to EUR 16.2 million in 2020, a decrease of 3% relative to
2019. The parent company generated 70% of sales revenue from groupage services, with sales declining by 10%, and the
number of shipments by 5% relative to the previous year. The effect of COVID-19 and diminishing economic activity gave
rise to a reduction in the number of shipments within the partner network.
Growth in sales of groupage services was recorded by the subsidiaries in Croatia and in Serbia, with a more notable
decline in turnover seen at the company in Kosovo.
The number of shipments within the Intereuropa Group network also continued to increase in 2020.
2.5.1.3 Domestic transport
The sales revenue generated by the domestic transport segment in 2020 was EUR 12.2 million and was down by 3%
relative to the previous ﬁnancial year. Domestic transport services represent an important support service for the Group’s
other products. As a stand-alone product, it faces signiﬁcant price pressures on all local markets.
The sales revenue generated by domestic transport in 2020 was at the same level as the previous year's revenue at the
parent company and at the company in Croatia and up by 27% relative to 2019 at the company in Bosnia and Herzegovina,
while the company in Serbia saw a signiﬁcant decline in sales in the domestic transport segment relative to 2019.
All Group companies carry out continuous activities aimed at the optimisation of processes, the control of costs and the
search for the optimal implementation of solutions that on one hand will preserve the quality of services at the highest level
and on the other will reduce implementation costs.
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2.5.1.4 Customs services
The Intereuropa Group generated a sales revenue of EUR 6.4 million in 2020 from the sale of customs services. The sales
revenue from customer services in 2020 lagged behind the previous year's results due to a decline in the number of
completed customs proceedings relative to a year earlier. The poorer sales results were the consequence of diminished
economic activity due to the effects of the COVID-19 pandemic at all Group companies. The parent company in Slovenia
generated EUR 2.3 million in revenues from the sale of these services. Growth in sales relative to the previous year was also
recorded at the company in North Macedonia, while other subsidiaries lagged behind the sales ﬁgures achieved in 2019.
Apart from the epidemic, another reason for the decline in sales revenue in Bosnia and Herzegovina was the loss of
customs terminal status at that company. This will have a signiﬁcant impact on future sales results.
Intensive preparations for Brexit were underway at the end of 2020 in the scope of customs clearance services. The custom
clearance segment pursues the strategic objective of expanding Intereuropa's presence by maintaining and opening
new customs departments in the territory of individual subsidiaries. Subsidiaries face increasing competition in the area
of customs clearance services, both in terms of providing basic customs clearance services for customers in customs
proceedings and in customs terminal transactions.
An increase in productivity, the centralisation of customs clearance, paperless operations and maintaining a territorial
presence comprise the development areas of the customs clearance segment. In addition to the aforementioned
development areas, preparations for Brexit and the corresponding increased demand of customers for customs and
consultancy services gained special importance in 2020.
2.5.1.5 Railway freight
Sales revenue generated by the railway freight segment in 2020 was up relative to the previous year. Having a positive
effect on the favourable ﬁnancial results was growth in sales at the company in Ukraine, which generates 68% of the
Group’s total sales revenue in the railway freight segment. The remainder of sales revenue was generated by the parent
company in Slovenia.
2.5.1.6 Plans for 2021 in the land transport segment
Special attention in the development of services in 2021 will be given to activities aimed at the computerisation of support
for ﬁeld processes, the electronic exchange of data with partners, transporters and customers in international road transport,
paperless operations and the centralisation of implementation in the customs clearance segment, and the development
of appropriate IT solutions in relation to the exchange of cargo between our customers and transporters on the market.
With the aim of maintaining sales growth and achieving ambitious sales targets, the land transport segment will continue to
invest in the development of solutions to raise the efﬁciency of the sales support process, the centralisation of purchasing,
and the development of a transporter management system at the Group level. Additional organisational measures are
planned with the aim of achieving increased productivity and the smooth implementation of work processes, with an
emphasis on management by objectives (MBO) and the monitoring of the effectiveness of processes by using new IT
solutions – BI.
Planned activities in the Point project will continue and are aimed at integrating Intereuropa into the Pošta Slovenije Group.
A relatively high degree of uncertainty connected with the COVID-19 pandemic and high customer expectations for
increasingly high-quality services will continue to dominate the land transport services market in the future.
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2.5.2 INTERCONTINENTAL TRANSPORT
The intercontinental transport business line comprises the sea freight, air freight and car logistics segments. The sales
revenue from intercontinental transport amounted to EUR 39.2 million in 2020, a decrease of 6% relative to the previous
year, and accounted for 26% of the Intereuropa Group’s total sales revenue generated by this business line, which was at
the same level recorded in the previous year.
Economic indicators were weaker in 2020 than envisaged in projections, primarily due to the COVID-19 pandemic, the
main negative impact of which was on relations in global trade, consumption and industrial production. On the other
hand, growth primarily in the air freight segment was the result of an increase in the urgent transportation of protective
equipment, which was also recognised in the Intereuropa Group.
The suspension of production in China and a historically high number of halted container ships in circulation at the global
level at the beginning of the year, and mainly problems associated with a lack of container equipment and shipping
capacities during the ﬁnal quarter, all had an additional impact on the sea freight segment. The volume of goods
transhipped through the Port of Koper, where the Group generates the highest revenues in the sea freight segment, was
down at all terminals in 2020 relative to the previous year.
FIGURE 6: STRUCTURE OF SALES REVENUE BY INDIVIDUAL PRODUCT IN THE INTERCONTINENTAL TRANSPORT SEGMENT
Sea freight 68%
Car logistics 10%
Shipping agency 1%
Air freight 21%
2.5.2.1 Sea freight
Sales revenue from sea freight and shipping agency services together totalled EUR 26.8 million in 2020, a decrease of 14%
relative to 2019. Sea freight services accounted for 18% of the Group’s total revenues.
Sales revenue from container transport services amounted to EUR 18.2 million in 2020, meaning a 11% decrease in sales
relative to the previous year. The decline in revenue was mainly the result of the impact of the COVID-19 epidemic, which
was reﬂected in a smaller volume of transhipped goods in ports and in changes to delivery routes.
Sales revenue from conventional freight services totalled EUR 7.3 million in 2020, a decrease of 15% relative to 2019. The
reduction in the volume of transhipments was a reﬂection of declining needs in industrial production and consumption.
Sales revenue from RO-RO services totalled EUR 0.9 million in 2020, a decrease of 45% relative to 2019. Fewer major
projects were implemented in 2020, while delivery terms also changed.
2.5.2.2 Car logistics
Sales revenue from car logistics services totalled EUR 4.1 million, a decrease of 13% relative to 2019. The reduction in the
sales of passenger and commercial vehicles of key customers, in particular, impacted operations in 2020.
The parent company in Slovenia accounted for the majority of sales of car logistics services.
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2.5.2.3 Air freight
The year 2020 was characterised to a great extent by COVID-19, which caused the greatest shock to airlines and aviation
since the Second World War. The effects were ﬁrst felt on the Chinese market, i.e. in the beginning of the year, but that
market had already recovered by April. COVID-19 thus had a signiﬁcant effect on air freight around the world, beginning
in February and up until its peak at the end of April. Recovery was surprisingly slow on most markets. The consequences
of travel restrictions were felt strongly, as the connections between cities around the world were discontinued. Freight
transport continued to operate signiﬁcantly better than passenger transport, but the effects were seen in a signiﬁcant
decline in capacities. This was all a serious problem for the global economy and also for supply chains, on which today’s
economy relies. Despite the difﬁcult situation due to the epidemic, 2020 was a record-breaking year in the Intereuropa
Group for air freight, as the set sales targets were all exceeded signiﬁcantly.
Sales revenue from air freight totalled EUR 8.3 million in 2020, an increase of 41% relative to 2019. The increase was
also attributed to major one-off transactions, primarily the charter and partial charter transport of medical and protective
equipment, and to higher prices in general of air freight services due to insufﬁcient capacities on the air freight market. On
the key and largest Slovenian market, where 68% of sales revenue in the air freight segment was generated, the previous
year’s sales were exceeded by 58%. In Serbia, the second most important market in this segment, sales revenue increase
of 25% relative to 2019. On the third most important market in Croatia, sales were up by 16% relative to 2019. All other
markets collectively also exceeded the sales generated in 2019.
2.5.2.4 Plans for 2021
Key development activities in the intercontinental transport segment focus on intensifying the Intereuropa Group’s sales
orientation through investments in the partner network and the development of business in Intereuropa's hinterland
countries. Also of importance in that respect are securing favourable purchasing terms from shipping companies and air
carriers, and the exploitation of the Group’s good market position at the Port of Koper. With the latter’s help, the Group
aims to expand activities at other ports on the Adriatic Sea.
Ambitious plans have been set for 2021, as signiﬁcant growth in sales revenue from all intercontinental transport segments
is expected, particularly in the strategic container and air freight segments. The main activities in achieving established
revenue targets will focus on the active marketing of all intercontinental transport segments, including project cargo. The
transfer of best practices to subsidiaries, the centralisation of the purchasing function, investments in human resources and
the standardisation of processes will all continue.
2.5.3 LOGISTICS SOLUTIONS
The Group generated revenues from the sale of logistics solutions in the amount of EUR 27.8 million in 2020, accounting
for 18% of the Group’s total sales revenue. Despite the extraordinary situation caused by COVID-19, the sales revenue
generated by the Group in 2020 from logistics solutions exceeded the sales revenue generated in 2019 by 4%, in part
due to changes in the way sales revenue is disclosed as the result of the optimisation of implementing processes and the
continued introduction of the standardised WexVS IT solution in warehousing operations.
In Slovenia, as the largest key market accounting for 74% of sales of logistics solutions, the results achieved in 2019 were
exceeded by 6%. Nearly all warehouse capacities in Slovenia are utilised.
The second largest market for logistics solutions is Croatia, which generates 16% of the sales revenue in this business line.
Sales revenue generated in 2020 was up by 1% relative to the previous year. Contributing signiﬁcantly to this fact were
pre-preparations of empty warehouse capacities for the needs of a major new transaction that commenced in the second
quarter of 2020.
In addition to the above-mentioned markets, sales revenue from logistics solutions was up by 8% in Bosnia and
Herzegovina, by 3% in Montenegro and by 76% in Kosovo. Sales revenue was down relative to 2019 at the companies in
North Macedonia and Serbia.
Primarily at the companies in Slovenia, Croatia and Serbia, warehousing transactions were reviewed and numerous activities
were implemented to utilise warehouse capacities and secure new transactions with higher value added, which increases
the proﬁtability of warehouses.
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FIGURE 7: STRUCTURE OF SALES REVENUE OF THE INTEREUROPA GROUP BY COUNTRY IN THE LOGISTICS SOLUTIONS SEGMENT (WITH
RESPECT TO A COMPANY’S HEAD OFFICE)
Slovenia 74%
Croatia 16%
Bosnia and Herzegovina 2%
Serbia 2%
Montenegro 4%
Ukraine 0% Other countries 2%
The Group continued to standardise and optimise logistics processes in 2020, particularly in the warehousing and storage
segment, and to implement integrated IT support for warehousing operations in Slovenia, Croatia and in Bosnia and
Herzegovina. The number of customers using an electronic data interchange (EDI) was up at the Group level.
2.5.3.1 Warehousing
The Group generated sales revenue of EUR 20.9 million from warehousing and storage services in 2020, a decrease of
1% relative to the previous year. Revenues from the sale of warehousing and storage services accounted for 14% of the
Group’s total sales and 75% of sales revenue from the logistics solutions segment.
2.5.3.2 Distribution
The Group generated sales revenue of EUR 6.8 million from distribution services in 2020, which represents 5% of the
Group’s sales and 25% of sales revenue from logistics solutions. Having a partially positive effect on revenues from
distribution services were changes in the way sales revenue is disclosed as the result of the optimisation of implementing
processes and the continued introduction of the standardised WexVS IT solution in warehousing operations.
2.5.3.3 Plans for 2021
The development of logistics solutions will focus on the specialisation of services by individual merchandise category and
thus the establishment of long-term cooperation with partners. Most crucial in terms of development are recognising and
meeting the demands of customers, and the optimal integration of the entire supply chain, with the help of IT support
adapted for that purpose.
In 2021, logistics solutions will continue to focus on the development of partner relations and thus on enhancing cooperation
with existing customers, and on the carefully planned securing of new logistics projects, primarily in terms of utilising free
storage capacities in the Group. Most crucial in terms of development are recognising and meeting the demands of
customers, and the optimal integration of the entire supply chain, with the help of IT support adapted for that purpose.
After successfully completing the project to introduce WMS IT support in Croatia and Bosnia and Herzegovina, we are also
planning to ﬁnalise the WMS project in Slovenia and Serbia. The start of construction of a new logistics centre in Rijeka and
new cold storage capacities at the warehouse in Celje is planned with regard to the warehousing infrastructure in 2021.
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2.6 ANALYSIS OF OPERATIONS
The Intereuropa Group generated EUR 150.7 million in sales revenue in 2020, a decrease of 6% relative to 2019. Operating
cash ﬂows (hereinafter: EBITDA) were down by 12% and totalled EUR 12.3 million. The operations of the Intereuropa
Group in 2020 were characterised, on all markets, by the COVID-19 pandemic. Nevertheless, the Group succeeded in
providing customers with continuous logistics support along the entire supply chain. Also due to the payment deferral of
loan liabilities for one year, the Group increased its cash and cash equivalents and lowered its net debt by EUR 10 million
in 2020 to stand at EUR 44.4 million at the end of 2020, resulting in an EBITDA ratio of 3.6.
2.6.1 PERFORMANCE
2.6.1.1 Significant operating indicators in the period 2017 to 2020
TABLE 17: OPERATING INDICATORS OF THE INTEREUROPA GROUP AND THE PARENT COMPANY INTEREUROPA, D. D. FOR THE PERIOD
2017 TO 2020 (IN EUR THOUSAND)
Intereuropa Group Parent company
2017 2018 2019 2020 2017 2018 2019 2020
Sales revenue 149,889 160,382 160,353 150,725 103,976 111,890 111,828 103,964
EBITDA
1
12,739 12,397 13,971 12,298 8,530 9,446 9,269 8,125
proportion of sales (in %) 8.5 7.7 8.7 8.2 8.2 8.4 8.3 7.8
Normalised EBITDA
1
12,345 13,898 13,568 11,369 8,972 9,580 9,295 8,002
proportion of sales (in %) 8.2 8.7 8.5 7.5 8.6 8.6 8.3 7.7
EBIT 311 6,064 7,524 5,764 2,783 5,332 5,041 4,340
proportion of sales (in %) 0.2 3.8 4.7 3.8 2.7 4.8 4.5 4.2
Normalised EBIT
1
5,991 6,383 6,344 4,043 4,932 5,043 4,868 3,682
proportion of sales (in %) 4.0 4.0 4.0 2.7 4.7 4.5 4.4 3.5
Net profit or loss -1,979 4,408 4,197 3,568 340 4,144 3,388 2,315
proportion of sales (in %) -1.3 2.7 2.6 2.4 0.3 3.7 3.0 2.2
Net earnings per ordinary share (in EUR) 0.01 0.15 0.12 0.08
Assets 229,672 232,927 223,351 220,444 180,279 185,114 176,748 172,272
ROA (in %)
1
-0.8 1.9 1.8 1.6 0.2 2.3 1.9 1.3
Equity 117,049 120,229 122,358 124,850 80,797 85,005 87,228 89,225
ROE (in %)
1
-1.6 3.8 3.5 2.9 0.4 5.1 4.0 2.7
Equity ratio (in %) 51.0 51.6 54.8 56.6 44.8 45.9 49.4 51.8
Net debt
1
67,114 60,197 54,352 44,371 69,670 64,631 57,293 54,115
Net debt/ EBITDA
1
5.3 4.9 3.9 3.6 8.2 6.8 6.2 6.7
Investments in property, plant and
equipment, and intangible assets
2,690 5,374 2,889 2,105 1,578 4,198 1,603 1,279
Investments as a proportion of sales
revenue (in %)
1.8 3.4 1.8 1.4 1.5 3.8 1.4 1.2
No. of employees at the end of the year 1,369 1,327 1,356 1,337 589 599 609 586
Average number of employees (based on
hours worked) - FTE
1
1,328 1,286 1,293 1,297 577 566 582 572
Value added
1
39,911 41,247 42,905 41,423 25,989 28,242 28,184 27,025
Value added/ FTE
1
30.0 32.1 33.2 31.9 45.0 49.9 48.4 47.2
Productivity (sales revenue/ FTE)
1
112.8 124.7 124.1 116.2 180.2 197.6 192.2 181.7
1
Alternative performance measure (APM), deﬁned in the section ‘Alternative performance measures’ in Table 23 on page 70.
59
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TABLE 18: NORMALISATION OF EBITDA
1
AND EBIT
Intereuropa Group Extraordinary effects (in EUR thousand) 2020 2019
Gains from the derecognition of operating
receivables due to major one-time
settlements
Reversal of adjustments to receivables due to the
repayment of past-due receivables
0 570
Other operating revenues 2,142 2,892
Revaluation revenues from the reversal of
impairment losses on property, plant and
equipment, and investment property
Reversal of impairment losses 119 1,333
Gain on sale of property, plant and
equipment, and investment property
Gain on sale of property, plant and equipment, and
investment property
392 431
Revenues from the reversal of non-
current provisions
Reversal of provisions and termination benefits 267 697
All other revenues
Government grants, debt write-offs,
other revenues
1,365 430
Costs of goods, materials and services
Correction of errors from previous years at
subsidiaries, and the participation of agency
workers in profit
-113 -155
Labour costs
Employee participation in profits, including
contributions, and costs for the payment of a crisis
bonuses
-757 -757
Impairment losses on receivables
Adjustments to the value of receivables due
to corrections of errors from previous years at
subsidiaries
0 -25
Other operating expenses
Creation of provisions, effects of fraud at subsidiary
in Zagreb, exclusion of Albanian subsidiary from
consolidation, expenses from the correction of
errors from previous years in Skopje
-212 -790
Costs of creation of provisions Creation of provisions -172 -387
Other operating expenses
Effects of fraud at subsidiary in Zagreb 0 -354
Exclusion of Albanian subsidiary from consolidation 0 -49
Expenses from the correction of errors from
previous years in Skopje
-41 0
Other operating expenses – Revaluation
operating expenses for intangible assets
and property, plant and equipment
Impairments -189 -557
Amortisation/depreciation
Adjustment to depreciation due to changes to the
useful life of real estate
862 0
Gains and losses from the derecognition of
operating receivables
Write-down of receivables from previous years in
Belgrade
-12 0
Total impact on EBITDA
1
929 403
Total impact on EBIT¹ 1,721 1,179
1
Alternative performance measure (APM), deﬁned in the section ‘Alternative performance measures’ in Table 23 on page 70.
60
INTEREUROPA / BUSINESS REPORT / 2020
Intereuropa, d. d. Extraordinary effects (in EUR thousand) 2020 2019
Gains from the derecognition of operating receivables due to
major one-time settlements
Reversal of adjustments to receivables due to the
repayment of past-due receivables
0 570
Other operating revenues 977 706
Revaluation revenues from the reversal of impairment losses
on property, plant and equipment, and investment property
Reversal of impairment losses 0 251
Gain on sale of property, plant and equipment, and
investment property
Gain on sale of property, plant and equipment,
and investment property
18 186
Revenues from the reversal of non-current provisions Reversal of provisions and termination beneﬁts 99 1
All other revenues
Government grants, debt write-offs, other
revenues
859 268
Costs of goods, materials and services Participation of agency workers in proﬁts -113 -134
Labour costs
Employee participation in proﬁts, including
contributions, and costs for the payment of a crisis
bonuses
-740 -736
Other operating expenses Creation of provisions 0 -181
Other operating expenses – Revaluation operating expenses
for intangible assets and property, plant and equipment
Impairments -13 -52
Amortisation/depreciation
Adjustment to depreciation due to changes to
the useful life of real estate
548 0
Total impact on EBITDA¹ 124 -26
Total impact on EBIT¹ 658 173
1
Alternative performance measure (APM), deﬁned in the section ‘Alternative performance measures’ in Table 23 on page 70.
TABLE 19: CONSOLIDATED INCOME STATEMENT OF THE INTEREUROPA GROUP FOR 2019 AND 2020
in EUR thousand
January–
December 2020
January–
December 2019
Index
2020/2019
Sales revenue 150,725 160,353 94
Gains and losses from the derecognition of operating receivables -15 -46 33
Other operating revenues 2,142 2,892 74
Costs of goods, materials and services -108,788 -116,356 93
Labour costs -29,124 -28,934 101
Amortisation/depreciation -6,464 -7,224 89
Impairment losses on receivables -269 462 -
Other operating expenses -2,443 -3,623 67
Operating proﬁt 5,764 7,524 77
Interest income 99 454 22
Other ﬁnance income 1 362 -
Finance costs – costs of ﬁnancing -852 -1,857 46
Impairment losses on loans granted and deposits -5 -10 51
Other ﬁnance costs -445 -30 1,485
Proﬁt/loss from ﬁnancing activities -1,202 -1,082 -
Investment result recognised according to the equity method 1 0 -
Proﬁt from ordinary operations 4,563 6,442 71
Corporate income tax (including deferred taxes) -995 -2,245 44
Net proﬁt for the period 3,568 4,197 85
Net proﬁt pertaining to controlling interests 3,647 3,898 94
Net proﬁt/loss pertaining to non-controlling interests -79 299 -
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TABLE 20: INCOME STATEMENT OF THE PARENT COMPANY INTEREUROPA, D. D. FOR 2019 AND 2020
in EUR thousand
January–December
2020
January–December
2019
Index 2020/2019
Sales revenue 103,964 111,828 93
Gains and losses from the derecognition of
operating receivables
-10 -46 23
Other operating revenues 977 706 138
Costs of goods, materials and services -76,747 -83,393 92
Labour costs -18,900 -18,915 100
Amortisation/depreciation -3,772 -4,427 85
Impairment losses on receivables -128 532 -
Other operating expenses -1,043 -1,244 84
Operating profit 4,340 5,041 86
Interest income 141 475 30
Other finance income 102 1,843 6
Finance costs – costs of financing -764 -1,759 43
Impairment losses on loans granted and deposits -329 -151 217
Other finance costs -496 -342 145
Profit/loss from financing activities -1,346 65 -
Profit from ordinary operations 2,994 5,107 59
Corporate income tax (including deferred taxes) -679 -1,719 40
Net profit for the period 2,315 3,388 68
Basic and diluted earnings per ordinary share
(in EUR)
0.08 0.12 67
62
INTEREUROPA / BUSINESS REPORT / 2020
2.6.1.2 Operating revenues, operating expenses, operating profit and EBITDA
The Group generated sales revenue of EUR 150.7 million in 2020, a decrease of 6% relative to 2019 and 8% more than
planned. The most signiﬁcant decline in the sales revenue of the Group in 2020 relative to 2019 was recorded by the
parent company and the Montenegrin subsidiary. The second largest Group company, the company in Croatia, managed
to maintain the level of revenue from the previous year in 2020, while the sales revenue of subsidiaries in Serbia, the
Ukraine and North Macedonia increased.
Despite the additional activities on the sales side, the containment measures associated with the epidemic imposed
by the countries in which the Group operates made it impossible to avoid a decline in sales. The largest decline in
absolute terms, relative to the previous year, was felt by the land transport business line, most notably by the road transport
segment. Contributing most to slightly lower sales in the intercontinental transport segment was growth in sales from air
freight services through the securing of major one-off transactions, while the most signiﬁcant effect of the epidemic in
this segment was on sea freight services. Despite the epidemic, the Group managed to exceed the previous year's sales
results in the logistic solutions segment through its activities to utilise free storage capacities and secure transactions with
high value added.
In 2020, the Intereuropa Group successfully continued the trend of growth in the average sales margin from the previous
year, and recorded an increase in the average sales margin in 2020 by 0.5 percentage points relative to 2019.
FIGURE 8: CHANGES IN THE SALES REVENUE OF THE INTEREUROPA GROUP AND THE PARENT COMPANY INTEREUROPA, D. D.
IN THE PERIOD 2017 TO 2020
Sales revenue of the Group
Sales revenue of the Company
Planned sales revenue of the
Group
Planned sales revenue of the
Company
Growth in sales revenue of the
Group
Growth in sales revenue of the
Company
200
150
100
50
0
-50
-100
In EUR million
Growth rate in %
25
20
15
10
5
0
-5
-10
2017
151
160160
150
104
112
112
104
139
95
2018 2019 2020
The decline in sales in 2020, both at the Group level and parent company, resulted in a reduction in work productivity
measured by sales revenue per employee.
FIGURE 9: CHANGES IN SALES REVENUE PER EMPLOYEE
1
OF THE INTEREUROPA GROUP AND THE PARENT COMPANY INTEREUROPA, D. D.
IN THE PERIOD 2017 TO 2020
In EUR million
20
15
10
5
0
-5
-10
Sales revenue of the Group per
employee
Sales revenue of the Company per
employee
Planned sales revenue of the
Group per employee
Planned sales revenue of the
Company per employee
Growth in sales revenue of the
Group per employee
Growth in sales revenue of the
Company per employee
116
182
107
166
2017 2018 2019 2020
250
200
150
100
50
0
-50
-100
Growth rate in %
1
Alternative performance measure (APM), deﬁned in the section ‘Alternative performance measures’ in Table 23 on page 70.
Labour costs as a proportion of sales revenue were up at the Group level in 2020. There was also a slight increase in
average labour costs per employee.
113
180
125
198
124
192
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FIGURE 10: OPERATING EXPENSES AS A PROPORTION OF THE SALES REVENUE OF THE INTEREUROPA GROUP IN THE PERIOD 2017 TO 2020
100
90
80
70
60
50
40
30
20
10
0
In %
Costs of services
Labour costs
Amortisation/depreciation
Costs of materials
Revaluation operating expenses
Other operating expenses
2
2
2
3
3
2
0
0
0
3
3
2017 2018 2019 2020
69 70 70 70
18
18
18
19
4
4 5
4
5
The Intereuropa Group generated EBITDA of EUR 12.3 million in 2020, down by 12% relative to the previous year, but 21%
higher than planned. In addition to the main factor of declining sales, the lag in EBITDA in 2020 relative to the previous
year was also attributed to lower other operating revenues, mostly as a result of lower revenues from the reversal of
impairment losses on property, plant and equipment, and investment property. EBITDA was positively impacted by lower
other operating expenses in 2020. The latter were high in 2019 on account of fraud identiﬁed at the Croatian subsidiary,
higher expenses from revaluation operating expenses for property, plant and equipment, and investment property, and
higher expenses from the creation of provisions.
Normalised EBITDA amounted to EUR 11.4 million in 2020, a decrease of 16% relative to normalised EBITDA in 2019.
FIGURE 11: CHANGES IN THE EBITDA
1
AND NORMALISED EBITDA¹ OF THE INTEREUROPA GROUP AND THE PARENT COMPANY
INTEREUROPA, D. D. IN THE PERIOD 2017 TO 2020
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
In EUR thousand
EBITDA of the Company
EBITDA of the Group
Normalised EBITDA of the Company
Normalised EBITDA of the Group
2017 2018 2019 2020
1
Alternative performance measure (APM), deﬁned in the section ‘Alternative performance measures’ in Table 23 on page 70.
64
INTEREUROPA / BUSINESS REPORT / 2020
FIGURE 12: CHANGES IN THE OPERATING PROFIT AND NORMALISED OPERATING PROFIT
1
OF THE INTEREUROPA GROUP AND THE
PARENT COMPANY INTEREUROPA, D. D. IN THE PERIOD 2017 TO 2020
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
In EUR thousand
EBIT of the Company
EBIT of the Group
Normalised EBIT of the Company
Normalised EBIT of the Group
2017 2018 20202019
1
Alternative performance measure (APM), deﬁned in the section ‘Alternative performance measures’ in Table 23 on page 70.
2.6.1.3 Finance income and costs
The Group’s net debt amounted to EUR 44.4 million at the end of 2020, a reduction of EUR 10.0 million during the year,
which was seen in an improvement in the Group’s net debt / EBITDA ratio, which stood at 3.6 in 2020, a decrease of 7.3%
relative to the previous year. The decrease in net debt was mainly the result of an increase in the balance of cash and cash
equivalents. Contributing signiﬁcantly to the latter was the conclusion of annex 1 to a loan agreement with a syndicate of
banks, through which the parent company deferred the payment of principal and interest for one year, thus delaying the
payment of employee participation in proﬁts. The parent company concluded annex 1 in May 2020 in order to mitigate
the effects of the COVID-19 epidemic and its negative effect on the Company's liquidity position.
FIGURE 13: CHANGES IN EBITDA¹ AND THE NET DEBT / EBITDA¹ RATIO OF THE INTEREUROPA GROUP BETWEEN 2017 AND 2020
13,971
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
In EUR thousand
NFD / EBITDA
EBITDA
NFD / EBITDA
8
7
6
5
4
3
2
1
0
2017 2018 2019 2020
5.3
4.9
3.9
3.6
12,739
12,397
12,298
1
Alternative performance measure (APM), deﬁned in the section ‘Alternative performance measures’ in Table 23 on page 70.
FIGURE 14: PROFIT OR LOSS FROM FINANCING ACTIVITIES OF THE INTEREUROPA GROUP IN THE PERIOD 2017 TO 2020
3
2
1
0
-1
-2
-3
In EUR million
Finance income of the Group
Finance cost of the Group
2017 2018 2019 2020
Loss from ﬁnancing activities of the Group
-2.3
-2.0
-1.1
-1.2
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The Group generated a loss from ﬁnancing activities of EUR 1.2 million, a slightly poorer result than the previous year. The
most important category comprised interest expenses, which amounted to EUR 0.9 million, a decrease of EUR 1 million
relative to the previous year, primarily as the result of favourable loan terms that the parent company negotiated in the loan
reﬁnancing process, which was successfully completed in January 2020, when the parent company and a syndicate of
banks, including Nova Ljubljanska banka, d. d. acting as the organiser and agent, concluded a long-term loan agreement
in the amount of EUR 54,850,000. Pošta Slovenije, d. o. o. contributed to that successful reﬁnancing by issuing a guarantee
covering 80% of the amount of that loan.
The slightly worse result from ﬁnancing activities in 2020 was contributed signiﬁcantly by expenses from negative exchange
rate differences in the amount of EUR -0.4 million, while revenues from positive exchange rate differences in the amount
of EUR 0.4 million were disclosed in 2019.
2.6.1.4 Net profit
The Intereuropa Group generated a net proﬁt of EUR 3.6 million in 2019, a decrease of EUR 0.6 million relative to the
previous ﬁnancial year and EUR 2.3 million above the planned ﬁgure.
The net proﬁt of Intereuropa, d. d. amounted to EUR 2.3 million in 2020, a decrease of EUR 1.1 million relative to the
previous year and EUR 1.2 million above the plan.
2.6.1.5 Structure of the statement of financial position of the Group
Total assets were down by EUR 2.9 million in 2020, primarily as the result of a reduction in non-current assets.
Non-current assets decreased by EUR 6.3 million, most notably in the items of property, plant and equipment and
investment property, as investments in property, plant and equipment were lower in 2020 than depreciation.
Current assets were up by EUR 3.4 million in 2020, mostly due to an increase in the balance of cash and cash equivalents.
Contributing signiﬁcantly to the latter was the conclusion of annex 1 to a loan agreement with a syndicate of banks in May
2020.
On the liabilities side, the proportion of current liabilities fell due to the successful reﬁnancing of ﬁnancial liabilities, while
the proportion of non-current liabilities rose, which solidiﬁed the ﬁnancial soundness of the Group.
The proportion of total equity and liabilities accounted for by equity was up by 1.9 percentage points in 2020.
66
INTEREUROPA / BUSINESS REPORT / 2020
TABLE 21: ITEMS FROM THE STATEMENT OF FINANCIAL POSITION OF THE GROUP IN THE PERIOD 2017 TO 2020 (IN EUR THOUSAND)
2017 2018 2019 2020
index
2020/2019
ASSETS 229,672 232,927 223,351 220,444 99
A. NON-CURRENT ASSETS, of which: 188,267 182,977 180,747 174,484 97
property, plant and equipment 164,669 157,404 145,262 141,311 97
non-current financial assets 106 102 185 94 50
B. CURRENT ASSETS, of which: 41,405 49,950 42,604 45,960 108
current operating receivables and contract assets 34,252 33,722 31,931 30,853 97
cash and cash equivalents 3,618 9,578 6,283 11,609 185
EQUITY AND LIABILITIES 229,672 232,927 223,351 220,444 99
A. EQUITY 117,049 120,229 122,358 124,850 102
B. NON-CURRENT LIABILITIES, of which: 81,758 15,470 17,328 68,684 396
non-current financial liabilities 66,995 511 2,719 54,199 1,993
C. CURRENT LIABILITIES, of which: 30,865 97,228 83,665 26,909 32
current financial liabilities 5,786 70,551 58,978 4,419 7
current operating liabilities and contract liabilities 24,838 26,306 24,341 21,940 90
FIGURE 15: STRUCTURE OF THE GROUP’S ASSETS IN THE PERIOD 2017 TO 2020
100
90
80
70
60
50
40
30
20
10
0
In %
Property, plant and equipment and
Investment property
Current operating receivables and contract
assets
169 mio EUR
164 mio EUR
175 mio EUR
170 mio EUR
32 mio EUR
31 mio EUR
34 mio EUR
34 mio EUR
16 mio EUR
6 mio EUR
14 mio EUR
12 mio EUR
16 mio EUR
4 mio EUR
20 mio EUR
10 mio EUR
Other assets
1
Cash and cash equivalents
2017 2018 20202019
1
Alternative performance measure (APM), deﬁned in the section ‘Alternative performance measures’ in Table 23 on page 70.
Deferred tax assets account for the majority of other assets.
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FIGURE 16: STRUCTURE OF THE EQUITY AND LIABILITIES OF THE INTEREUROPA GROUP IN THE PERIOD 2017 TO 2020
100
90
80
70
60
50
40
30
20
10
0
In %
Equity
Non-current ﬁnancial liabilities
125 mio EUR
117 mio EUR
120 mio EUR
1 mio EUR
122 mio EUR
54 mio EUR
67 mio EUR
3 mio EUR
37 mio EUR
4 mio EUR
40 mio EUR 42 mio EUR 39 mio EUR
Other liabilities
6 mio EUR
71 mio EUR
59 mio EUR
Non-current ﬁnancial liabilities
2017 2018 20202019
2.6.1.6 Structure of the parent company’s statement of financial position
The most signiﬁcant change on the asset side of the parent company’s statement of ﬁnancial position in 2020 was recorded
in non-current assets, in the item property, plant and equipment, which was the result of lower investments in 2020 and a
decrease in right-of-use assets under leases.
On the liabilities side, the most signiﬁcant change was recorded in the maturity of ﬁnancial liabilities, which was the result
of the aforementioned successful conclusion of a long-term loan agreement in January 2020 in the reﬁnancing process.
TABLE 22: ITEMS FROM THE STATEMENT OF FINANCIAL POSITION OF THE PARENT COMPANY INTEREUROPA, D. D. FROM 2017 TO 2020
(IN EUR THOUSAND)
2017 2018 2019 2020
index
2020/2019
ASSETS 180,279 185,114 176,748 172,272 97
A. NON-CURRENT ASSETS, of which: 153,893 150,992 148,710 145,082 98
property, plant and equipment 89,848 85,752 77,641 75,790 98
non-current financial assets, of which: 44,323 44,323 44,889 44,518 99
investments in subsidiaries 44,257 44,257 44,823 44,452 99
B. CURRENT ASSETS, of which: 26,386 34,121 28,038 27,190 97
current operating receivables and contract assets 23,814 24,210 22,759 22,515 99
current financial investments 1,211 1,615 2,326 2,198 95
EQUITY AND LIABILITIES 180,279 185,114 176,748 172,272 97
A. EQUITY, of which: 80,797 85,005 87,228 89,225 102
share capital 27,489 27,489 27,489 27,489 100
share premium account 18,455 18,455 18,455 18,455 100
fair value reserves 32,342 32,183 30,627 30,545 100
B. NON-CURRENT LIABILITIES, of which: 76,364 10,122 11,254 62,845 558
non-current financial liabilities 66,327 0 870 52,642 6,048
C. CURRENT LIABILITIES, of which: 23,118 89,988 78,267 20,202 26
current financial liabilities 5,196 71,778 61,505 6,045 10
current operating liabilities and contract liabilities 17,875 18,073 16,623 13,944 84
68
INTEREUROPA / BUSINESS REPORT / 2020
FIGURE 17: STRUCTURE OF THE ASSETS OF THE PARENT COMPANY INTEREUROPA, D. D. IN THE PERIOD 2017 TO 2020
100
90
80
70
60
50
40
30
20
10
0
In %
Property, plant and equipment and
Investment property
Investments and loans to Group companies
Current operating receivables and
contract assets
95 mio EUR
92 mio EUR
99 mio EUR
96 mio EUR
47 mio EUR
47 mio EUR
46 mio EUR
46 mio EUR
9 mio EUR
3 mio EUR
8 mio EUR
2 mio EUR
12 mio EUR
0,4 mio EUR
14 mio EUR
5 mio EUR
Other assets
1
Cash and cash equivalents
23 mio EUR
23 mio EUR
24 mio EUR
24 mio EUR
2017 2018 20202019
1
Alternative performance measure (APM), deﬁned in the section ‘Alternative performance measures’ in Table 23 on page 70.
Deferred tax assets were the most signiﬁcant item under other assets.
FIGURE 18: STRUCTURE OF THE EQUITY AND LIABILITIES OF THE PARENT COMPANY INTEREUROPA, D. D. IN THE PERIOD 2017 TO 2020
100
90
80
70
60
50
40
30
20
10
0
In %
Equity
Non-current ﬁnancial liabilities
89 mio EUR
81 mio EUR
85 mio EUR
0 mio EUR
87 mio EUR
53 mio EUR
66 mio EUR
1 mio EUR
24 mio EUR
6 mio EUR
28 mio EUR
28 mio EUR 27 mio EUR
Other liabilities
5 mio EUR
72 mio EUR
62 mio EUR
Current ﬁnancial liabilities
2017 2018 20202019
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2.6.1.7 Alternative performance measures
The Intereuropa Group also uses the Alternative Performance Measures (APMs) deﬁned by the ESMA (European Securities
and Markets Authority) to present its performance. The selected APMs also illustrate the Intereuropa Group's performance.
TABLE 23: LIST OF ALTERNATIVE PERFORMANCE MEASURES
Alternative performance measure Explanation of calculation Reason for selected measure
EBITDA
EBITDA: operating profit + amortisation/
depreciation + revaluation operating expenses
for intangible assets and property, plant and
equipment – revaluation operating revenues from
the reversal of impairment losses on intangible
assets and property, plant and equipment.
EBITDA reflects performance and
is the main source for ensuring
shareholder returns.
Normalised EBITDA – Group
Excludes the effect of other operating revenues,
expenses from the creation of provisions, expenses
for the participation of employees and hired labour
in profits, labour costs from a crisis bonus and, in
2019, in addition to all items listed above, expenses
associated with the effect of fraud at a subsidiary,
revenues from the reversal of impairment losses
as the result of the repayment of old operating
receivables based on a court settlement, expenses
from the correction of errors in previous years
at Group subsidiaries, and expenses from the
exclusion of a subsidiary from consolidation.
Normalised EBITDA reflects
performance after the exclusion of
all extraordinary effects, i.e. EBITDA
from ordinary operations.
Normalised EBITDA – parent
company
Excludes the effect of other operating revenues,
expenses from the creation of provisions, expenses
for the participation of employees and hired labour
in profits, labour costs from a crisis bonus and, in
2019, in addition to all items listed above, revenues
from the reversal of impairment losses as the result
of the repayment of old operating receivables
based on a court settlement.
Normalised EBIT – Group
The same exclusions of effects apply as with EBITDA
for the Group, with the additional effect of a
correction to depreciation due to a change in the
useful life of real estate.
Normalised EBIT reflects
performance after the exclusion of
all extraordinary effects, i.e. EBIT
from ordinary operations.
Normalised EBIT – parent company
The same exclusions of effects apply as with EBITDA
for the parent company, with the additional effect
of a correction to depreciation due to a change in
the useful life of real estate.
Value added Value added = EBITDA + labour costs.
Value added is a basic economic
indicator and the basic measure of
economic activity and success. In
a contextual sense, it means newly
created value that the Intereuropa
Group has generated in one year.
Value added per employee
Value added per employee = value added /
Average number of employees based on hours
worked (FTE)
Productivity indicator that reflects
average newly created value added
per employee in the Intereuropa
Group.
Net debt
Net debt = financial liabilities – loans granted and
deposits – cash.
Net debt in absolute terms indicates
the Intereuropa Group's general
debt and its ability to settle all its
financial liabilities were they to
become due immediately.
Net debt / EBITDA Ratio = net debt / EBITDA
Ratio that reflects the Intereuropa
Group's ability to repay its financial
liabilities, as it indicates how
many years would be required to
repay financial debt from existing
liquid assets and cash flows from
operating activities
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Alternative performance measure Explanation of calculation Reason for selected measure
Return on equity (ROE)
ROE = net profit or loss / average equity calculated:
(final balance of equity - net profit/loss) + initial
balance of capital/ 2
The ratio reflects the Intereuropa
Group's ability to generate net
profit relative to equity. Return
on equity is also an indicator of
the management's success in
increasing a company's value for its
shareholders.
Return on assets (ROA)
ROA = net profit or loss / average assets calculated:
(final balance of assets + initial balance of assets) / 2
The ratio reflects the Intereuropa
Group's ability to generate net
profit relative to assets.
Net return on revenue
Net return on revenue = net profit or loss / total
revenues (net sales revenue + other operating
revenue + finance income)
The ratio reflects the Intereuropa
Group's ability to generate net
profit relative to revenues.
Productivity
Productivity = sales revenue / Average number of
employees based on hours worked (FTE)
The ratio reflects the effectiveness
of employees in generating sales
revenue.
Other assets
Other assets = intangible assets + other non-
current operating assets + non-current operating
receivables + deferred tax assets + long-term
loans granted and deposits + other non-current
financial assets + assets (disposal groups) for sale +
inventories + short-term loans, deposits + current
receivables for corporate income tax + other current
assets.
Methodology for the presentation
of other assets in the balance sheet
breakdown
Financial and operating liabilities
Long-term financial liabilities + long-term operating
liabilities + short-term financial liabilities + short-
term operating liabilities + deferred tax liability +
liabilities from the contract + short-term liabilities for
tax on profit
Methodology for the presentation
of financial and operating liabilities
in the balance sheet breakdown
2.6.1.8 Cash flow analysis
The Group generated a positive net cash ﬂow from operating activities of EUR 9.6 million in 2020, a decrease of 24%
or EUR 3.0 million relative to 2019. The net cash ﬂow from investment activities was negative at the Group level in the
amount of EUR 0.9 million. The most signiﬁcant changes relative to 2019 were in the items net cash ﬂow from short-term
deposits placed (-EUR 1.6 million) and outﬂows for the acquisition of property, plant and equipment (+EUR 1.3 million).
Following the coverage of the negative net cash ﬂow from ﬁnancing activities in the amount of EUR 3.4 million, which was
an improvement of EUR 12.8 million relative to the previous year, Group companies disclosed cash and cash equivalents
of EUR 11.6 million at the end of 2020, an increase of EUR 5.3 million or 85% on the balance at the end of 2019. Because
the parent company is so much larger than other companies in relative terms, changes in the Group’s cash ﬂows generally
track those of the parent company, as explained in the next paragraph.
The parent company generated a positive net cash ﬂow from operating activities of EUR 4.9 million in 2020, a decrease
of EUR 4.2 million relative to 2019. EUR 0.3 million of that amount derives from lower operating proﬁt before changes
in net working capital and taxes, while the remainder derives from a change in net working capital and provisions. The
most signiﬁcant effect was seen in a change in operating liabilities (-EUR 1.9 million) and a change in receivables (-EUR 1.3
million), which resulted in an increase in invested working capital of EUR 3.2 million.
A negative net cash ﬂow from investing activities was generated in the amount of EUR 1.4 million, a decrease of EUR 2.6
million relative to 2019, primarily due to lower inﬂows from the sale of property, plant and equipment (by EUR 2.9 million).
A negative net cash ﬂow from ﬁnancing activities was generated in the amount of EUR 3.9 million, an increase of EUR 9.1
million relative to 2019. The main factors in lower net outﬂows were the repayment of temporarily drawn revolving loans at
the beginning of 2019 (EUR 5.5 million drawn at the end of 2018), the negative effect of lending activity within the Group
in 2020 compared to a positive effect in 2019 (-EUR 2.7 million), and lower net outﬂows to commercial banks (EUR 6.7
million), primarily as the result of an agreement reached in May 2020 on the deferral of payments of principal and interest
for a period of one year.
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TABLE 24: CASH FLOWS OF THE INTEREUROPA GROUP AND THE PARENT COMPANY INTEREUROPA, D. D. FOR THE PERIOD 2017 TO 2020
(IN EUR THOUSAND)
Intereuropa Group Parent company
2017 2018 2019 2020 2017 2018 2019 2020
Net cash flow from operating
activities
9,742 12,317 12,573 9,602 6,469 9,112 9,101 4,876
Net cash flow from investing
activities
-832 -2,886 311 -874 425 -2,930 1,253 -1,360
Net cash flow from financing
activities
-10,570 -3,437 -16,185 -3,375 -8,303 -1,165 -13,027 -3,899
Exchange rate differences relating
to cash
-16 -34 6 -27 0 0 0 0
Net cash flow for the period from
ordinary operations
-1,660 5,994 -3,301 5,353 -1,409 5,017 -2,673 -383
2.7 SHARES AND OWNERSHIP STRUCTURE
The COVID-19 pandemic in 2020 impacted the functioning of the corporate sector, from where its effect spread to
the capital markets. Despite the sharp drop in the SBI TOP index at the beginning of the pandemic, the Ljubljana Stock
Exchange ended the year with 31% higher turnover from trading in shares than in the previous year, with the SBI TOP index
declining by 2.8%. In the context of a minor price ﬂuctuation, Intereuropa's IEKG share price ended the year at EUR 1.16,
with turnover amounting to 44% of turnover in 2019.
Shares of Intereuropa, d. d.
The share capital of Intereuropa, d. d. in 2020 was divided into 27,488,803 shares, of which 16,830,838 were ordinary
registered freely transferable no-par-value shares (designated IEKG) and 10,657,965 freely transferable no-par-value
preference shares (designated IEKN). Ordinary shares were listed on the prime market of the Ljubljana Stock Exchange,
while preference shares were not traded on the regulated securities market. Ordinary IEKG shares have been traded on
the Ljubljana Stock Exchange since 1998, and have been listed on the prime market since 2005.
On 13 November 2019, Pošta Slovenije, d. o. o. purchased a package of shares, and thus held a 72.1% participating
interest in Intereuropa, d. d. at the beginning of 2020. Pošta Slovenija, d. o. o.'s stake comprised 9,168,425 ordinary shares
(IEKG) and all 10,657,965 preference shares (IEKN). After the takeover bid sent to other shareholders was completed, Pošta
Slovenije, d. o. o. acquired an additional 2,408,846 ordinary shares (IEKG) and thus increased its participating interest to
80.9%.
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INTEREUROPA / BUSINESS REPORT / 2020
TABLE 25: KEY DATA REGARDING SHARES
2017 2018 2019 2020
Total number of shares 27,488,803 27,488,803 27,488,803 27,488,803
No. of preference shares (IEKN) 10,657,965 10,657,965 10,657,965 10,657,965
No. of ordinary shares (IEKG) 16,830,838 16,830,838 16,830,838 16,830,838
- of which: treasury shares 18,135 18,135 18,135 18,135
Book value per share in EUR (as at 31 December) 2.94 3.09 3.18 3.25
Data regarding trading in IEKG shares
Closing price in EUR (as at 31 December) 2.00 2.60 1.43 1.16
Weighted average price in EUR 2.26 2.50 2.29 1.40
Highest price in EUR 2.40 3.00 2.80 1.87
Lowest price in EUR 1.17 1.93 1.40 1.02
Market capitalisation in EUR thousand 33,679 43,760 24,068 19,524
Turnover in EUR thousand 2,558 2,010 1,207 526
Indicators
Earnings per ordinary share in EUR 0.01 0.15 0.12 0.08
Cash flow per share in EUR 0.16 0.30 0.28 0.23
Gross dividends per share in EUR 0.00 0.00 0.00 0.00
P/BV 0.68 0.84 0.45 0.36
P/CF 12.37 8.7 5.03 5.15
P/E 200.00 17.33 11.92 14.50
Capital yield 69.6% 29.9% -45.0% -18.9%
Dividend yield 0.0% 0.0% 0.0% 0.0%
Total yield 69.6% 29.9% -45.0% -18.9%
Notes:
Book value per share: equity / (number of total shares – number of treasury shares).
Market capitalisation: closing price at the end of year * number of shares listed on the stock exchange.
Earnings (loss) per ordinary share: earnings (loss) per ordinary share / (number of ordinary shares – number of treasury shares).
Cash ﬂow per share: (net proﬁt – dividends + amortisation/depreciation) / (number of total shares – number of treasury shares).
P/BV: closing price at the end of the year / book value per share.
P/CF: closing price at the end of the year / cash ﬂow per share.
P/E: closing price at the end of the year / earnings per share.
Capital yield: growth in closing price over a one year-period.
Dividend yield: gross dividend / closing price at the end of the year.
Trading in IEKG shares
There was less trading in IEKG shares in 2020 than in the previous year. A total of 449 transactions were concluded in
which owners exchanged 377,621 IEKG shares. Annual turnover in shares amounted to EUR 0.5 million, while average daily
turnover was EUR 2.1 thousand. The market value of IEKG shares ﬂuctuated between EUR 1.02 and EUR 1.87 per share and
ended the year at EUR 1.16. IEKG shares were down 18.9% during the year, while the Ljubljana Stock Exchange’s SBI TOP
index recorded a 2.8% drop in value. This was also reﬂected in the lower market capitalisation of ordinary IEKG shares,
which at the end of 2020 amounted to EUR 19.5 million.
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FIGURE 19: CHANGES IN THE PRICE OF IEKG SHARES AND THE SBI TOP INDEX IN 2020
Closing price of IEKG shares (in EUR)
4.00
3.00
2.00
1.00
0.00
Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.
Closing price of
IEKG shares (in EUR)
SBI TOP (index points)
1,000
900
800
700
600
SBI TOP (index points)
FIGURE 20: TURNOVER IN INTEREUROPA SHARES IN 2020
Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.
Turnover (in EUR thousand)
80
70
60
50
40
30
20
10
0
Ownership structure of the Company
The concentration of ownership increased in 2020. A total of 990 shareholders holding a total of 2,408,846 IEKG shares
responded to Pošta Slovenija, d. o. o.'s takeover bid in January. Pošta Slovenije, d. o. o. thus increased its ownership stake
to 80.9%. By the end of the year, a further 299 shareholders sold their shares, bringing the number of shareholders during
the year down by 36%, from 3,608 to 2,319. The combined participating interest of the top ten shareholders was up by 7.4
percentage points relative to the situation as at 31 December 2019 to stand at 95.0% at the end of the year.
In terms of ownership structure at the end of 2020, the stakes held by natural persons and ﬁnancial corporations were
down by 5 percentage points and 3 percentage points, respectively, relative to the previous year, while Pošta Slovenije, d.
o. o.’s stake was up by 9 percentage points. The proportion of shares held by foreign investors was 0.3%.
TABLE 26: TOP TEN SHAREHOLDERS OF THE PARENT COMPANY INTEREUROPA, D. D. AS AT 31 DECEMBER 2020
Item
no.
Shareholder
Number of shares
31 December 2020
Participating interest
31 December 2020
1. Pošta Slovenije, d. o. o. 22,235,236 80.9%
2. Luka Koper, d. d. 1,344,783 4.9%
3. Kapitalska družba, d. d. 719,797 2.6%
4. Luka Koper INPO, d. o. o. 615,730 2.2%
5. SDH, d. d. 474,926 1.7%
6. Zavarovalnica Triglav, d. d. 332,918 1.2%
7. Jereb Law Firm (fiduciary account) 134,599 0.5%
8 Individuals 117,967 0.4%
9. Individuals 76,873 0.3%
10. Individuals 73,196 0.3%
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INTEREUROPA / BUSINESS REPORT / 2020
At the end of 2020, 118 ordinary shares were held on a special account of Kapitalska družba, d. d., which in accordance
with Article 48a of the Book-Entry Securities Act (Ofﬁcial Gazette of the Republic of Slovenia, No. 5/17) is intended for
securities waived by their holders and/or securities held by the Republic of Slovenia. Kapitalska družba may not exercise
the voting rights attached to those securities.
FIGURE 21: OWNERSHIP STRUCTURE TAKING INTO ACCOUNT BOTH CLASSES OF SHARES OF THE PARENT COMPANY INTEREUROPA, D. D.
AS AT 31 DECEMBER 2020
Individuals 5,3%
KAD (Article 48a of the Book-Entry Securities Act) 0.0%
Luka Koper* 7.1%
Pošta Slovenije, d. o. o. 80.9%
Financial corporations 1,5%
Other companies 1.1%
Kapitalska družba, d. d. 2.6%
SDH, d. d. 1.7 %
Treasury shares 0.1%
* Including Luka Koper, d. d. and its 100% owned subsidiary Luka Koper INPO, d. o. o.
Shares held by members of the Management Board and Supervisory Board
There were no changes in the shares held by members of the Management Board and Supervisory Board. The members
of the Management Board did not hold shares of Intereuropa, d. d.
The number of shares held by Supervisory Board members is presented in the table below.
TABLE 27: NUMBER OF IEKG SHARES HELD BY SUPERVISORY BOARD MEMBERS AS AT 31 DECEMBER 2020
Shareholder Number of shares 31 December 2020
Participating interest 31 December
2020
Tjaša Benčina,
member of the Supervisory Board
40 0.0001%
Authorised capital
Intereuropa, d. d. had no authorised capital as at 31 December 2020.
Dividend policy
The Company did not pay dividends in 2020.
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Communication with the financial public
The principles of communication with the ﬁnancial public are set out in Intereuropa, d. d.’s Corporate Governance Policy,
which is accessible on the Company’s website at www.intereuropa.si. The Company strives for regular, honest and accurate
communication with its existing owners, which is one of the bases for building successful operations. Emphasis is placed
on appropriate communication with investors, and correct and up-to-date information for creditor banks.
To that end, it consistently complies with the Ljubljana Stock Exchange’s information disclosure rules and recommendations,
and strives to achieve the best corporate communication possible. The following communication tools and activities are
used for that purpose:
• the regular General Meetings of Shareholders;
• the regular publication of business results and other price-sensitive information;
• regular communication via the SEOnet electronic system;
• regular communication with the media; and
• the regular publication of information regarding operations on the Company's website.
The Company also welcomes the direct opinions and recommendations of shareholders, which it collects via the following
e-mail address: vlagatelji@intereuropa.si.
Financial calendar of publications for 2021
Date Publication
4 February 2021 – 10 March 2021 No-communication period
11 March 2021
Thursday
Publication of information regarding the business results of the Intereuropa Group and the parent company
Intereuropa, d. d. in 2020
29 April 2021
Thursday
Publication of the audited annual report for 2020
1 May 2020 – 19 May 2021 No-communication period
20 May 2021
Thursday
Publication of the unaudited business report of the Intereuropa Group and the parent company Intereuropa,
d. d. for the period January to March 2021
24 June 2021
Thursday
Publication of resolutions adopted by the General Meeting of Shareholders
6 Aug 2021 – 26 Aug 2021 No-communication period
26 August 2021
Thursday
Publication of the unaudited business report of the Intereuropa Group and the parent company Intereuropa,
d. d. for the period January to June 2021, and the presentation of planning documents of the Intereuropa
Group and the parent company Intereuropa, d. d. for 2022
30 October 2021 – 17 November 2021 No-communication period
18 November 2021
Thursday
Publication of the unaudited business report of the Intereuropa Group and the parent company Intereuropa,
d. d. for the period January to September 2021
The scheduled dates of publications are given. Any change to those dates will be published on the Company’s website
at http://www.intereuropa.si.
Intereuropa, d. d. does not provide information regarding its operations during no-communication periods.
Scheduled regular announcements and other controlled information will be published on the Ljubljana Stock Exchange's
website via the SEOnet system (http://seonet.ljse.si) and on the Company's website at http://www.intereuropa.si.
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2.8 RISK MANAGEMENT
Risk is any uncertainty regarding future business events that could reduce the probability and/or affect the achievement of
business objectives, and thus have a negative impact on performance. Intereuropa Group companies therefore employ
a risk management system as a tool to maintain their competitive advantage on the market, to reduce the probability of
ﬁnancial or other losses, and the loss of goodwill or damage to the Group’s reputation, and to improve the performance
of the Group as a whole.
The risk management policy of Intereuropa Group companies is deﬁned in the Risk Management Rules of the Intereuropa
Group, which were updated in 2020. Those rules deﬁne the risk management process at all Group companies, and
include:
• the responsibilities and competences of key persons in the risk management process;
• the deﬁnition and types of risks;
• the deﬁnition of the risk management process;
• the methodology for the measurement of exposure to risks;
• the process of managing loss events and establishing a register of loss events;
• the method of establishing a risk register; and
• informing and reporting methods.
Exposure to risks is assessed in two steps: ﬁrst, at the level of each Group company, where risk must be assessed by an
administrator and the management of a subsidiary; and second, at the Group level, where the level of risk is calculated
as the sum of the estimated weighted average annual amounts of damage at companies where a particular risk was
identiﬁed. The estimated average annual amount of damage at a given company is calculated as the product of the
frequency of an unwanted event and the estimated value of the consequences of the realisation of that event.
The setting of the level of risk for the Group using the calculated weighted average of estimated annual amounts of
damage is illustrated in Table 28.
TABLE 28: LEVEL OF RISK FOR THE INTEREUROPA GROUP
Level of risk for the Group Estimated damage to the Group (in EUR)
1
X<=20.000
2
20.001<X<=50.000
3
50.001<X<=80.000
4
80.001<X<=110.000
5
110.001<X<=160.000
6
160.001<X<=210.000
7
210.001<X<=260.000
8
260.001<X<=310.000
9
310.001<X<=410.000
10
410.001<X<=510.000
11
510.001<X<=610.000
12
610.001<X<=710.000
13
710.001<X<=960.000
14
960.001<X<=1.210.000
15
1.210.001<X<=1.460.000
16
X>=1.460.001
Identiﬁed levels of risks fall into the following ranges:
• Assessments from 1 to 4 represent low-level and less signiﬁcant risks;
• Assessments from 5 to 8 represent medium-level and moderate risks;
• Assessments from 9 to 12 represent high-level and signiﬁcant risks; and
• Assessments from 13 to 16 represent very high-level and very signiﬁcant risks. These are the Group's key risks.
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The management of the parent company is responsible for deﬁning the risk management policy and introducing a
comprehensive risk management process within the Intereuropa Group.
Risks are addressed systematically by risk holders and the Risk Management Committee, which together implement
activities in the risk management process. At sessions, risk managers brief the members of the aforementioned committee
on identiﬁed risks. They also discuss proposed risk management measures, together with deadlines and responsible
persons. The success of the implementation of adopted risk management measures is also monitored. The committee
also discusses loss events at sessions.
The Intereuropa Group encounters various risks in its operations. Those risks are classiﬁed to the following ﬁve risk
categories:
• strategic risks,
• operational risks,
• ﬁnancial risks,
• regulatory compliance risks, and
• reputation risks.
At the end of 2020, a total of 50 risks were identiﬁed at the Group level, four assessed as high, 14 assessed as medium
and 32 assessed as low.
Operational risks are among the highest identiﬁed risks, both in terms of their number as well as their estimated average
annual potential damage. The aforementioned risks represent the possibility of loss due to the inadequate or failed
implementation of internal procedures and processes, or due to external events. A high-level risk was also identiﬁed
among operational risks, i.e. the risk associated with the outbreak of an epidemic and its negative impact on operations.
Immediately following the outbreak of the pandemic in March 2020, the Intereuropa Group began to implement all
required measures to prevent the spread of the infection and protect the health of employees, and to ensure business
continuity. Despite the successful implementation of measures during the ﬁrst and second waves of the epidemic, the
Group was unable to completely avoid its negative impact on its operations.
Strategic risks comprise risks associated with losses as a result of incorrect business decisions, the inadequate implementation
of adopted decisions and insufﬁcient responsiveness to changes in the business environment. Those risks depend on
compliance between the outlined strategic objectives and the business strategy employed to achieve those objectives,
the funds used to achieve those objectives, and on the quality of implementation. Nine strategic risks were identiﬁed
at the Group level at the end of 2020. The level of risk associated with three was assessed as high, i.e. the risk of fraud
committed by management, the risk of the loss of customs terminal status at two Group subsidiaries and the risk that
strategic investments would not be implemented by the projected deadline. The level of identiﬁed risk associated with
the risk of fraud committed by management and the risk of the loss of customs terminal status was lowered in 2020. The
lowering of the level of risk was attributed to implemented measures relating to the corporate governance of subsidiaries,
the introduction of a fraud prevention system and the suspension of services of the customs terminal in Sarajevo.
Regulatory compliance risks comprise the risk of the failure of Group companies to operate in accordance with valid
laws and implementing regulations, other regulations, policies and declarations to which companies are bound, and the
internal acts of companies. They relate to corporate governance, relations with employees and industry standards, and are
linked to internal control systems and the security policy, and to the personal accountability of management, the members
of supervisory boards and the liability of legal entities. Seven regulatory compliance risks were identiﬁed at the Intereuropa
Group level at the end of 2020, none of which were assessed as high or very high.
Five ﬁnancial risks were also identiﬁed at the Group level at the end of 2020. These are risks associated with the ability to
generate ﬁnance income, to control ﬁnance costs and to preserve the value of ﬁnancial assets. None of those identiﬁed
risks were assessed as high or very high. Liquidity risk was assessed as medium, while other risks were assessed as low.
Detailed information regarding exposure to ﬁnancial risks is presented in the ﬁnancial report in note no. 31.
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2.9 DEVELOPMENT AND INVESTMENTS
2.9.1 DEVELOPMENT OF THE COMPUTERISATION OF OPERATIONS
Activities and projects in 2020 were characterised by the COVID-19 epidemic, which also had a major effect on the
computerisation of processes. In order to minimise the impact of the epidemic on its operations, the Company's key
activity was ensuring technical means for work from home for a large number of employees, in addition to ensuring the
required information security. An important goal was also the protection of key IT personnel who enabled this type of
work, and the continuous functioning of the IT system. The system and process that enabled work from home without
major investments for the entire Intereuropa Group were therefore set, and did not simultaneously lead to a reduction in
the level of IT services.
Despite this, the majority of planned projects were completed in 2020, as follows:
• the completion of projects to introduce the SAP Financial Accounting solution at the subsidiaries AD Intereuropa Beograd,
Intereuropa Kosova, Intereuropa Skopje, Intereuropa Sajam and Interzav;
• the partial introduction of the Wex business information solution at the subsidiary AD Intereuropa Beograd, which continues
in 2021;
• the introduction of the Wex-WMS system in warehousing processes at Intereuropa RTC, Sarajevo;
• the creation and introduction of a mobile solution for tracking FTL/LTL shipments;
• a CRM information system was introduced at most Intereuropa Group companies;
• a business intelligence (BI) system was introduced for sales, the management of operating receivables and the analysis
of operations, while the development of a system for monitoring the efﬁciency of operational processes will soon be
completed;
• an independent information security function was set up at the end of 2020; and
• the implementation of synergies with Pošta Slovenije commenced in the area of the IT infrastructure.
The following key projects and activities are planned for 2021 with the aim of achieving strategic IT objectives, implementing
the Group’s business plan and the achieving synergies at the Pošta Slovenije Group level:
• the setting up of a back-up IT location for ensuring business continuity;
• the linking of the Intereuropa Group’s communication network with Pošta Slovenije’s network;
• the construction of interfaces for linking Intereuropa's business information systems with those of Pošta Slovenije;
• the continued introduction of the Wex business information solution at other subsidiaries; and
• the introduction of a system for monitoring the efﬁciency of operational processes in the scope of the BI (business
intelligence) project.
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2.9.2 INVESTMENTS IN FIXED ASSETS
2.9.2.1 Intereuropa Group
The Intereuropa Group invested EUR 2.1 million in ﬁxed assets in 2020. Of that amount, EUR 0.6 million was invested in
real estate and EUR 1.5 million in equipment and intangible assets. Thus, 31% of the annual investment plan was realised. A
major factor in the suspension and postponement of investments, and thus the partial implementation of the investment
plan, was the COVID-19.
The majority of the funds were earmarked for IT development and updates (EUR 0.4 million), for warehouse fences in
Maribor, Dravograd and Ljubljana with an advanced security system (EUR 0.3 million), and for the renovation of ofﬁce
premises for lessees in Maribor (EUR 0.3 million).
TABLE 29: OVERVIEW OF THE REALISATION OF PLANNED INVESTMENTS BY THE INTEREUROPA GROUP AND PARENT COMPANY IN 2020
AND COMPARISON WITH 2019 (IN EUR THOUSAND)*
Real estate
Equipment and intangible
assets
Total investments
2019
2020
plan
2020 2019
2020
plan
2020 2019
2020
plan
2020
index
20/19
Index
20/20
plan
Intereuropa, d. d. 327 2,120 374 1,276 2,028 905 1,603 4,148 1,279 79.8 30.8
Subsidiaries 329 933 189 957 1,796 637 1,286 2,729 826 64.2 30.3
Total Group 656 3,053 563 2,233 3,824 1,542 2,889 6,877 2,105 72.9 30.6
* Breakdown by property, plant and equipment and intangible assets: of the Group’s total investments in 2020 in the amount of EUR 2,105 thousand,
EUR 2,020 thousand was invested in property, plant and equipment and EUR 85 thousand was invested in intangible assets.
2.9.2.2 Plans for 2021
Investments in the total amount of EUR 8.4 million are planned at the Group level in property, plant and equipment and
intangible assets, primarily in the upgrading and renovation of the warehousing infrastructure and warehouse equipment,
in the upgrading of IT equipment and in intangible assets.
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2.10 DIVESTMENT OF COMMERCIALLY OBSOLETE ASSETS
The sale of non-core and non-strategic real estate, which will enable the Group to maintain a sustainable level of
indebtedness when investing in new warehousing capacities, is envisaged in the scope of the strategic development
programme of the Intereuropa Group until 2025.
The Intereuropa Group sold ﬁxed assets with a carrying amount of EUR 2.3 million for EUR 2.7 million in 2020, while in 2019
it sold ﬁxed assets with a carrying amount of EUR 2.9 million for EUR 3.4 million.
The following major items of real estate were sold in 2020:
• a warehouse and appertaining land in Zagreb;
• ofﬁce premises in Zagreb;
• business premises in Pljevlja, Montenegro;
• business premises in Ptuj;
• land in Ploče, Croatia.
In addition to the above, a sales contract for a commercial building in Nikšić, Montenegro was concluded in December
2020.
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Sustainable
development
03 SUSTAINABLE
DEVELOPMENT
3.1 HR ISSUES
The COVID-19 epidemic had a signiﬁcant effect on the business processes and work environment in the Group in 2020.
A number of measures and internal instructions were adopted at the Company to address the challenges in the new
circumstances, which required preventive and responsible action by all employees and consistent compliance with
adopted measures.
The Company’s employees were continuously briefed on all measures that followed NIJZ's recommendations, as well as
the recommendations of other institutions (Occupational, trafﬁc and sports medicine), which issue the aforementioned
recommendations and contribute to the protection of employees during the epidemic.
The general recommendations for preventing the spread of infections were taken into account, i.e. thoroughly washing
or disinfecting hands, cough hygiene, maintaining physical distance and wearing a mask. Methods that did not include
personal contact (phones, video-conferences, internet, etc.) were used to the greatest extent possible for communication
between employees and for meetings.
During the epidemic, employees with access to the information system were ordered to work from home, which was
done by 389 Group employees occasionally or for a speciﬁc period. Of that amount, 297 were employees from Slovenian
Group companies, 62 were from the Croatian subsidiary and 30 from the subsidiary in Bosnia and Herzegovina. Work from
home was also carried out to a lesser extent at the other subsidiaries. Employees at higher risk of deteriorating health will
work from home on a permanent basis until the epidemiological situation improves. Flexibility in the form of organising
work from home for Slovenian Group companies will continue to a certain degree even after the end of the epidemic on
the basis of employment contracts concluded for work from home.
A total of 221 employees or 16% of all Group employees were furloughed in 2020 due to the reduced scope of operations.
A further 90 employees of the Intereuropa Group were absent from work due to force majeure events, i.e. quarantine,
child care and lack of public transport. In accordance with the laws of individual countries, companies took advantage of
various ﬁnancial subsidies to overcome their business problems.
A total of 108 persons in the Group were infected, which translates to 7% of all employees (including hired workers).
3.1.1 NUMBER OF EMPLOYEES
The Intereuropa Group had an average of 1,349 employees in 2020. The balance on the last day of 2020 was 1,337, with
Slovenian Group companies accounting for 44.7% of that number and foreign subsidiaries the remaining 55.3%. The total
number of Group employees was down by 19 or 1.4%. Two employees from the subsidiary in Albania were not included
in the total number of Intereuropa Group employees, as that subsidiary is not included in the Group's consolidated
ﬁnancial statements.
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84
FIGURE 22: PROPORTION OF EMPLOYEES BY COUNTRY IN WHICH INTEREUROPA GROUP COMPANIES ARE BASED
SlovenIa; 597; 44.7%
Croatia; 290; 21.7%
Bosnia and Herzegovina; 124; 9.3%
Serbia 97; 7.3%
Montenegro; 114; 8.5%
Kosovo; 49; 3.7%
North Macedonia; 38; 2.8%
Ukraine; 28; 2.1%
3.1.2 CHANGES IN THE NUMBER OF EMPLOYEES
The Intereuropa Group hired 142 new employees and terminated the employment of 161 workers in 2020. Most of the
needs for new employees were the result of an increased workload and the securing of new transactions (39%), followed
by newly employed workers replacing employees who left the company or were on protracted sick leave (36%) and
workers who previously performed work at Intereuropa via employment agencies (25%).
Mutual terminations of employment, as is customary, was the main reason for departures (48%).
The turnover rate of employees who left their jobs at their own initiative was 5.8%, a decrease of 1.9 percentage points
relative to 2019.
The ﬁrst step in replacing employees who left the Intereuropa Group is to verify the possibilities for reassignment and
advancement of qualiﬁed internal candidates to perform for demanding and managerial work. As an exception, senior
positions are ﬁlled by a certain number of external candidates due to speciﬁc competences that are lacking at the
Company and competitive strengths.
TABLE 30: NUMBER OF EMPLOYEES BY INTEREUROPA GROUP COMPANY
Company
31 December
2019
31 December
2020
Change 20-19 Index 20/19
Intereuropa, d. d., Koper 609 586 -23 96
Interagent, d. o. o., Koper 9 8 -1 89
Interzav, d. o. o., Koper 3 3 0 100
Subsidiaries in Slovenia 621 597 -24 96
Intereuropa, logističke usluge, d. o. o., Zagreb 286 282 -4 99
Intereuropa Sajam, d. o. o., Zagreb 9 8 -1 89
Intereuropa RTC, d. d., Sarajevo 144 124 -20 86
AD Intereuropa logističke usluge, Belgrade 83 97 14 117
Intereuropa Kosova L.L.C., Prishtina 33 49 16 148
Zetatrans A.D. Podgorica 113 114 1 101
Intereuropa Skopje, d. o. o. 38 38 0 100
TOV TEK ZTS, Uzhhorod 29 28 -1 97
Companies outside of Slovenia 735 740 5 101
TOTAL 1,356 1,337 -19 99
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85
FIGURE 23: CHANGE IN THE NUMBER OF EMPLOYEES AT THE INTEREUROPA GROUP IN THE PERIOD 2017 TO 2020
1.600
1.400
1.200
1.000
800
600
400
200
0
Number of employees
2017 2018 2019 2020
Slovenia
Abroad
Total
602
611
621
597
767
716
735
740
1,369
1,327
1,356
1,337
3.1.2.1 Flexible forms of employment
There is a policy in place in the Intereuropa Group that at least 10% of employees perform work via ﬂexible forms of
employment that enable an easier adjustment of the number of employees to the needs of work processes and a better
response to changes in the organisation of work. Work via HR agencies, student services and ﬁxed-term employment are
classiﬁed as ﬂexible forms of work that must comply with the laws of individual countries.
In addition to rights and obligations, employees that perform work via employment agencies are also entitled to the other
beneﬁts that apply to regular employees. More than half of these workers are full-time employees. Such forms of work
in the Group via agencies and student services are present in jobs with lower value added (e.g. clerks and warehouse
workers), or as temporary employment for projects and as a way to temporarily replace absent employees.
An average of 206 workers, recalculated as FTEs, performed work for the Group in 2020 via agencies and student services,
broken down as follows: 182 workers via employment agencies (compared with 188 in 2019) and 24 via student services
(compared with 45 in 2019). A total of 13.7% of all Group employees, recalculated as FTEs, which was 1.7 percentage points
less than in the previous year, worked via ﬂexible forms of employment (agency workers and students).
Fixed-term employment is also deemed a ﬂexible form of employment. At the end of 2020, a total of 11% or 144 of the
Intereuropa Group’s employees were on ﬁxed-term employment contracts.
3.1.2.2 Process of integrating procedures with Pošta Slovenije
The integration of the Intereuropa Group with Pošta Slovenije continued in 2020. These procedures envisage the
centralisation of support services, which will enable central governance and management. Its purpose is the standardisation
and optimisation of internal procedures, processes and resources, the strengthening of competences and best practices,
and the achievement of synergistic effects for both companies. Consultations regarding the merger of support functions
and the reassignment of employees took place with the trade unions and work councils of both companies.
3.1.3 STRUCTURE OF EMPLOYEES
3.1.3.1 Employee structure by gender, age and management position
Given the nature of work, the Intereuropa Group employs more men than women, while the proportion of employees
by gender breakdown remains the same at the Group level as in the previous year. The proportion of women employed
at Slovenian Group companies was up more than 1% relative to the previous year, while that proportion was down by just
under 1% in total at Group companies abroad. The percentage of executive and management staff on individual contracts
declined by 0.7% at the Group level relative to the previous year.
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86
TABLE 31: EMPLOYEE STRUCTURE BY GENDER, AGE AND MANAGEMENT POSITION
31 December 2020
Proportion of employees by gender within the Group 62.9% men, 37.1% women
Slovenian Group companies 54.8% men, 45.2% women
Total companies abroad 69.5% men, 30.5% women
Average age of employees at Slovenian Group companies (years) 48.2 years (men: 47.6 years; women: 48.8 years)
Average age at other foreign subsidiaries 42 – 49.7 years
Proportion of management staff (on individual contract) in the Group 4.9% (60.6% men; 39.4% women)
Proportion of management staff (on individual contract) at Slovenian Group
companies
4.4% (59.3% men; 40.7% women)
Proportion of management staff (on individual contract) at foreign
companies
5.3% (61.5% men; 38.5% women)
3.1.3.2 Qualification structure of employees
The qualiﬁcation structure of employees has remained at roughly the same level for a number of years now. Given the
Intereuropa Group’s core activity, i.e. logistics operations and warehousing, the majority of employees have a secondary
school or vocational education. The proportion of Group employees with higher than secondary school education
increased by 0.5 percentage points in 2020 relative to the previous year, which was also the same amount by which the
proportion of employees with lower qualiﬁcations decreased.
FIGURE 24: QUALIFICATION STRUCTURE OF EMPLOYEES AT THE INTEREUROPA GROUP IN THE PERIOD 2017 TO 2020
100
90
80
70
60
50
40
30
20
10
0
%
2017 2018 2019 2020
Qualiﬁcation level I.–III. st.
Qualiﬁcation level IV.–V. st.
Qualiﬁcation level VI.–VIII.
5.8% 6.1%
5.6%
6.1%
57.6% 57.9% 57.9%57.0%
36.6% 36.0% 36.%36.9%
3.1.3.3 Disabled persons
TABLE 32: NUMBER AND SHARE OF DISABLE PERSONS AT THE INTEREUROPA GROUP
31 December 2020
Number and share disabled persons in the Group 44 disabled persons (20 working part-time and 24 working full-time); 3.3%
Slovenian Group companies 35 disabled persons (20 working part-time and 15 working full-time); 5.7%
Total companies abroad 9 disabled persons (9 working full-time); 1.2%
Most employees with a disability status work at the parent company. Intereuropa, d. d., is entitled to compensation for 14
disabled persons for exceeding the legally prescribed quota of disabled persons, which for companies operating in the
transport and warehousing sector requires at least 3% of the total number of employees to be disabled persons to be
granted compensation.
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3.1.4 TRAINING AND HR DEVELOPMENT
3.1.4.1 System of training, identification and monitoring of required knowledge/skills
Two of the key factors contributing to the Company's competitiveness and rapid response to the ever-changing
market requirements are the knowledge and skills of employees. Through training and different forms of motivation,
the Intereuropa Groups strives for the career development of employees and the securing of the knowledge required
to provide competitive logistics services. This mainly includes expertise from logistics, the storage of various types of
merchandise, customs clearance services, the organisation of transport, etc. In addition, it is also crucial to ensure support
knowledge for management of the organisation and support functions (law, accounting, ﬁnances, IT, HR, occupational
health and safety), knowledge of foreign languages, communication skills, etc.
Group companies identify their needs for the aforementioned knowledge every year through the planning process,
and a training plan is prepared for employees at the level of individual organisational units and companies within the
Group. Planning takes place at larger Group companies in connection with the process of management by objectives
via the conducting of annual interviews. The cost aspect of the training process according to the plan is monitored on
a quarterly basis, while the appropriateness of completed training programmes in terms of content is monitored on an
annual basis. The quality of training is veriﬁed through occasional surveys and repeated annual assessments of the required
organisational knowledge via annual interviews. The key competences that are veriﬁed include teamwork, a proper
attitude to customers, independence and responsibility, and ﬂexibility. The average score of developed competences
is adequate. If an employee's level of development of competences is below expectations, they must undergo the
required training programmes.
3.1.4.2 Realisation of training in 2020
A total of 7,713 hours was earmarked for employee training at the Group level in 2020, a decrease of 4,426 hours relative
to the previous year. This difference was primarily the result of more extensive internal training focusing on occupational
health and safety, which was carried out at the subsidiary in Croatia in 2019 (3,202 hours). Group employees received an
average of six hours of training, with Slovenian Group companies receiving four hours and foreign subsidiaries receiving
7 hours.
Training in 2020 was also impacted by the measures imposed to prevent the spread of the coronavirus, as internal forms
of training were hampered, and external training courses were cancelled or postponed during the epidemic. A large
proportion of training was carried out at the Company in the form of short e-learning and web conferences. Only 13% of
all education and training was carried out by internal experts (less than in previous years). As is customary, there was training
on occupational health and safety and training for the management of logistics processes with IT support at the parent
company and subsidiaries in Serbia, Bosnia and Herzegovina and in Croatia.
In terms of content, the largest proportion of training courses was aimed at obtaining logistics knowledge (36%), followed
by occupational health and safety training at 29%, while a little over 27% was accounted for by further training to obtain
speciﬁc professional knowledge and skills from different areas of the company's support activities and a small proportion
was accounted for by training focusing on management and sales, and the improvement of business English.
Out of the more extensive training courses undertaken by Slovenian Group companies, mention should be made of
e-training on information security, which was attended by 83% of employees who use computers in their work and
whose knowledge was tested at the end of training, as well as training for 22 managers who obtained skills for effective
communication and management by objectives. Due to the epidemiological measures, only two out of three modules
were completed, and a portion of the managers will undergo the full training as soon as the epidemiological situation so
allows.
With respect to the subsidiaries abroad, it should be noted that, in addition to the above-mentioned training carried out to
enable the use of information programmes in logistics processes, a group of 22 warehouse workers from the Intereuropa
Zagreb subsidiary underwent practical training and became familiar with the work process at the warehouse of the Celje
business unit.
INTEREUROPA / SUSTAINABLE DEVELOPMENT / 2020
88
FIGURE 25: BREAKDOWN OF EDUCATION AND TRAINING AT THE INTEREUROPA GROUP IN 2020 BY CONTENT
Health &Safety at work 29.34%
Logistics 35.68%
Supporting activities 27.22%
Managing 4.20%
Sales and marketing 0.29%
Foreign languages 3.28%
TABLE 33: COMPARISON OF EDUCATION AND TRAINING AT THE INTEREUROPA GROUP IN THE PERIOD 2017 TO 2020
2017 2018 2019 2020
No. of hours of functional training (seminars, courses, professional
meetings, etc.)
13,633 14,384 12,138 7,713
No. of hours of internal transfer of knowledge 4,695 4,727 4,776 1,007
No. of training participants (seminars, courses, professional
meetings, etc.)
1,483 1,479 1,296 1,090
Total funds used for training in EUR* 99,657 100,249 56,902 58,630
Funds used for training per employee in EUR* 73 75 42 44
* Figure only includes participant fees.
3.1.4.3 Competence centre for human resource development in logistics
From September 2019 until May 2022, Intereuropa, d. d. will be included in the European Competence Centre project for
the development of employees in logistics (KOC Logins). The objective of the project is the development of employee
competences, and thus their improved ﬂexibility, employability and effectiveness, and ultimately the increased awareness
of both employees and employers about the importance of lifelong learning.
The Company is participating as a partner in a consortium with 31 other Slovenian companies from the logistics sector.
There is also a project ofﬁce at the Company that organises and coordinates training, reports on work and prepares
applications for co-ﬁnancing.
A total of 47 training events attended by 93 employees (certain employees attending multiple times) were organised at
Intereuropa, d. d. in 2020 in the scope of the aforementioned project.
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3.1.5 EQUAL TREATMENT OF ALL EMPLOYEES, PROTECTION AGAINST HARASSMENT AND
DISCRIMINATION IN THE WORKPLACE, AND RESPECT FOR HUMAN RIGHTS AND
DIGNITY
All of the Intereuropa Group's employees, for the duration of their employment, and job seekers are treated equally,
regardless of their personal circumstances, such as gender, nationality, race or ethnic origin, language, religion or belief,
political or other beliefs, education, material standing, social position, family status, disability, state of health, age and sexual
orientation. All forms of direct and indirect discrimination are prohibited.
The employer ensures the equal treatment of all employees, in particular with regard to employment, advancement,
training, education, retraining, pay and other employment earnings, absence from work, working conditions, working
hours and the termination of an employment contract, and with regard to the exercising of other employment rights.
The parent company has adopted rules that govern the protection of employees against sexual and other forms of
harassment and mobbing, and against discrimination in the workplace and in connection with work. Those rules also
deﬁne procedures for taking action in the event such harassment, mobbing or discrimination occurs. Intereuropa has
adopted the Code of Ethics, which applies to all Group companies and deﬁnes standards of ethics and integrity in the
work of Group employees. The right to personal data protection (GDPR), the management of conﬂicts of interest and
other areas are also governed at individual companies by the relevant bylaws.
3.1.6 PARTICIPATION OF WORKERS IN MANAGEMENT
Works councils, intended for the participation of workers in the adoption of important HR, economic and other company
decisions, function actively at Slovenian Group companies and the subsidiaries in Bosnia and Herzegovina and Ukraine.
The works council in Bosnia and Herzegovina comprises seven members, 14 members at the Ukrainian company, and 13
members from individual organisational units at different locations at Slovenian Group companies. A total of 13 sessions were
organised at Slovenian Group companies in 2020. In addition to works council members, members of the Management
Board, director of the HR and general affairs department and other management staff, as required, were always present
at these sessions. Various topics were discussed: presentation of ﬁnancial reports, HR problems, remuneration, the rights
of employees during Pošta Slovenije's takeover, consultation during the adoption of company rules, the organisation of
operations, etc. Employees were regularly informed of the content of all sessions and adopted resolutions via the internal
website.
Employee rights are represented at Slovenian Group companies by two representative trade unions in which 34% of
employees are members. A trade union also operates at the subsidiary in Montenegro and includes 95% of the company's
employees, and in Croatia where 12% of employees are members. Other companies do not have representative trade
unions.
3.1.6.1 New collective agreement of Intereuropa, d. d.
In February 2020, the Management Board of Intereuropa, d. d., together with the representatives of representative trade
unions (ŠAK-KS 90 and the road transport trade union) signed a new collective agreement, whose primary aim was the
incentive-based regulation of wage relations (disparities) and the long-term stability and competitiveness of the Company.
INTEREUROPA / SUSTAINABLE DEVELOPMENT / 2020
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3.1.7 CONCERN FOR EMPLOYEES AND THE BROADER SOCIAL ENVIRONMENT
The Intereuropa Group provides its employees with a broad spectre of additional beneﬁts that improve the quality of
work and time that employees spend in the work environment.
To facilitate the balancing of work and family life, parents with young children have the right to take advantage of ﬂexible
part-time work. A total of eight Group employees per month on average took advantage of that opportunity in 2020.
Slovenian companies of the Intereuropa Group maintained the New Year's holiday tradition of giving the children of
employees a gift certiﬁcate in the amount of EUR 30 for a children’s shop.
Slovenian Group companies have ﬁnanced employees’ supplemental pension insurance for 14 years. That insurance
includes all permanent employees, and temporary employees after they have been on the job for one year. The Company
co-ﬁnances the pension plan by paying in a portion of the insurance premium in favour of policyholders depending on
the employee's age: for employees below 35 years of age, the employer pays 70% of the premium, while it pays 80% of
the premium for employees above 35 years of age and 90% of the premium for employees above 45 years of age, up to
the legally prescribed 5.84% of an employee's gross wage.
A portion of funds is earmarked every year to employees who, due to poor health and extended sick leave, have low
income and require ﬁnancial assistance for additional healthcare services, and in the event of the death of a family member
of employee. The Group provided ﬁnancial assistance to 44 employees in 2020 in the total amount of EUR 22 thousand.
The most loyal employees receive ﬁnancial rewards and recognition to mark their 10th, 20th, 30th and 40th anniversaries
within the Intereuropa Group. A total of 69 Group employees received recognition for major work anniversaries in 2020,
ﬁve for 40 years, 19 for 30 years and 36 for 20 years of service at Intereuropa.
Current employees and retirees are offered the use of the Intereuropa Group’s holiday facilities (at spas, on the seaside,
in the mountains, etc.).
We encourage employees to exercise with the aim of maintaining and strengthening their health, and organise team-
building events within speciﬁc organisational units and between units (picnics, meetings, various celebrations, sports
competitions, marathons, mountain hikes, etc.).
Secondary school and tertiary level students are provided the possibility of undergoing mandatory internships and mentor
assistance in preparing their seminar papers and undergraduate theses. Intereuropa's experts cooperate with schools and
attend conferences as lecturers.
3.1.7.1 Measurement of the organisational climate (Zlata nit)
The organisational climate is measured every two years at Slovenian and Croatian Group companies in the scope of the
Zlata nit (GoldenThread) study. On the basis of the results of the most recent measurement in 2019, activities to improve the
results relating to remuneration, which alongside communication was identiﬁed as a vital opportunity for improvements,
were carried out at both of the aforementioned companies. As already mentioned above, a new collective agreement
was adopted at the parent company, while the operating results at the subsidiary in Croatia allowed a 2% rise in gross
wages.
Intereuropa, d. d. was recognised as a ‘senior-friendly company’ in the competition that was organised under the auspices
of the Golden Thread project. This recognition is awarded to companies that implement measures and show concern for
personal growth and the development of employees above 45 years of age.
3.1.8 SICK LEAVE RATE
Despite the epidemic, the sick leave rate in the Intereuropa Group did not rise in 2020. Just the opposite: the long-term
objective of reducing or maintaining the sick leave rate due to illnesses and workplace injuries below 4.5% was achieved
at the Group level in 2020. The sick leave rate was 4.4%, which is 0.6 percentage points less than the ﬁgure recorded in
the previous year. The rate fell by at the parent company, as well, by 0.5 percentage points relative to the previous year to
stand at 5.4%. The reasons for the drop in the sick leave rate can very likely be attributed to work from home, as employees
with mild forms of illnesses took advantage of this form of work instead of taking sick leave.
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3.1.9 OCCUPATIONAL HEALTH AND SAFETY
In addition to ensuring the appropriate quality of operations, the concern for the safety and health of employees and the
satisfaction and suitable work capacity of employees, which ensures optimal productivity, motivation and commitment to
work, are all also vital for the business success of the Intereuropa Group.
Achieving higher standards and the well-being of employees in terms of occupational health and safety are ensured
through the orderliness of work premises and work stations, through investments to improve working conditions, through
the updating of technological procedures, through the purchase of new, modern and safer work equipment, using
prescribed personal protective equipment for its intended purpose, through measurements of the work environment,
and through the regular inspection of work equipment and the appropriate employee training.
3.1.9.1 Promotion of occupational health
Promotion of health in the workplace is mandatory by the law and represents one of the most important foundations for
the safety and good health of workers. The aim of measures to promote occupational health is to ensure a healthy and
safe work environment, to maintain employees’ capacity to work and to reduce the sick leave rate. The parent company
has been implementing a project to promote occupational health since 2014. Its focus in 2020 was on the implementation
of measures to improve mental health, and to prevent respiratory diseases and various forms of cancer. To that end,
the following activities were planned: recreational activities in leased halls and ﬁtness centres, mountain hikes and other
recreational activities, all with the aim of maintaining and strengthening the health of employees, the raising of awareness
about the importance of healthy eating, fresh fruit supplied in the workplace, periodic 15-minute neck and shoulder
massages in the workplace, and encouraging active breaks from work. Due to the outbreak of the COVID-19 epidemic,
most activities were carried out in a smaller scope.
3.1.9.2 Employee healthcare
In cooperation with authorised physicians, 365 Intereuropa Group employees were referred for preliminary, periodic and
other speciﬁc-purpose medical examinations, a decrease of 18 or 4.7% relative to 2019. A total of 196 employees were
referred for preliminary, periodic and other speciﬁc-purpose medical examinations at the parent company, of which 137
were on full-time contracts and 59 were hired workers, a decrease of 48 or 19.7% relative to 2019. Flu vaccinations were
free-of-charge for all Slovenian citizens in 2020. Employees applied individually for vaccination.
3.1.9.3 Workplace injuries
A total of 15 employees suffered workplace injuries at the Group level in 2020, which is two more than in 2019, translating
to 0.96% of the total number of employees. All injuries to employees that occurred in 2020 were mild, such as blows from
objects, cuts and slips, the causes for which were momentary carelessness during work.
A great deal of attention during employee training was invested in teaching correct and healthy work methods, with an
emphasis on the risks associated with workplace accidents.
3.1.9.4 Inspections and testing of work equipment
Certain risks associated with injuries and health impairments arise in the use of work equipment. All equipment that
employees use in their work and that could be dangerous or detrimental to the health of employees must be appropriately
inspected and tested by the deadlines prescribed by the manufacturer, or by the deadline prescribed by law.
A total of 529 items of various work equipment, in particular forklifts, lifts, hydraulic loading platforms, wrapping machines,
various power tools and other machines and devices, were inspected and tested in the Intereuropa Group in 2020.
3.1.9.5 Work from home
Following the outbreak of the COVID-19 epidemic, the Intereuropa Group adopted the decision to allow employees
to work from home to the largest extent possible in order to prevent the spread of the infection. In cooperation with an
authorised occupational medicine physician, a list of positions was compiled with the possibility of working from home. In
terms of occupational health and safety, the employer is the one responsible for ensuring safe and healthy work conditions.
Employees were provided the required computer equipment for continuous work from home. They were also given the
relevant instructions to arrange a safe and healthy workplace.
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3.1.9.6 Fire safety
Ensuring ﬁre safety is of exceptional importance to protect people, property and the environment. In addition to regular
ﬁre safety training, special attention was given to ensuring the management and control of ﬁre risks. In 2020, a number of
inspections, tests and measurements were conducted in the Intereuropa Group, with 26 being carried out on lightning
conductor installations and 79 on electrical installation assemblies. A total of 1,592 items of various ﬁre safety equipment was
inspected and tested (ﬁre extinguishers, internal and external ﬁre hydrants, and active ﬁre safety systems).
Inspections, tests and measurements were conducted on 13 lightning conductor installations and 32 electrical installation
assemblies at the parent company in 2020. A total of 1,417 items of various ﬁre safety equipment was inspected and tested
(ﬁre extinguishers, internal and external ﬁre hydrants, and active ﬁre safety systems).
3.2 ENVIRONMENTAL MATTERS AND ENERGY-EFFICIENCY
The Intereuropa Group takes into account prescribed legal norms and follows the guidelines set out in the Energy Act
and in European environmental directives in its efforts to reduce hazardous emissions into the environment, limit the loss
of energy, and separate and recycle waste.
Energy efﬁciency and a responsible approach to the environment are integral parts of the Group’s work processes and
business decisions. They relate to:
• the energy efﬁciency of buildings and devices;
• waste management, including waste computer equipment;
• procedures for handling hazardous cargoes;
• light pollution; and
• the monitoring of waste water.
Energy efficiency and separate waste collection
Intereuropa Group companies are implementing the following measures in the area of energy efﬁciency:
• the periodic cleaning and servicing of furnaces, chimneys and air conditioning units;
• the periodic servicing of work machinery and other equipment;
• the replacement of worn-out air conditioning units and work machinery; and
• the regulation of heating devices and the additional regulation and control over the functioning of combustion plants,
during operation and on down days.
Intereuropa made the following investments focusing on energy efﬁciency in 2020:
• renovation of the boiler room – improved furnace efﬁciency and more affordable energy;
• the replacement of old, energy inefﬁcient air conditioning devices with new models; and
• the replacement of old, energy wasteful lighting with more advanced systems.
The total value of purchases of more energy efﬁcient solutions was EUR 152 thousand in 2020.
Six solar power plants are installed on the roofs of the Intereuropa Group’s warehouses, with a total power of 4,889 kWp,
which is enough to supply electricity to 1,350 households. The Group’s contribution to reducing CO2 emissions is thus
3,320 tonnes per year.
In terms of separate waste collection, the Intereuropa Group pursues the long-term objectives to reduce waste and beneﬁt
from the expected effects. Special containers are used to separate non-hazardous waste (e.g. cardboard, paper, wood,
metals, glass, rubber, plastic foils, etc.), while hazardous chemicals and waste oil are collected in dedicated warehouses.
Organic waste of animal origin is removed by specialised contractors. Computer monitors, printer cartridges, batteries
and other computer equipment are also collected separately. In agreement with an authorised waste collector and in
accordance with legal requirements, waste computer equipment is transported at least once a year to an appropriate
disposal site.
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Reduction of environmental impacts in transport and business processes
The transport activity is a major source of environmental pollution. One of the key criteria in the selection of road transport
service providers is thus the number and proportion of a subcontractor’s vehicles with environmentally friendly motors.
The Intereuropa Group is also directly reducing negative impacts on the environment in other business processes by
transitioning to paperless operations, through various energy-saving measures in warehouses and commercial buildings,
and by raising awareness about the contribution of each individual to the preservation of the environment.
The parent company consumed 7.02 million kWh of electricity, 2,414,512 kWh of natural gas and 78,035 litres of fuel oil in
2020.
Concern for the environment and energy efﬁciency is passed on to all employees via internal communications. The Group
aims to contribute to the increased awareness of business partners with regard to environmental protection principles
through a diversiﬁed range of services that support those principles.
The level of risks associated with inappropriate waste management and environmental pollution is assessed as low within
the Intereuropa Group. Exposure to those risks is controlled and mitigated through the inclusion of companies in national
waste management schemes, through the implementation of activities in the areas of energy efﬁciency and environmental
self-awareness, and through the implementation of waste and energy management plans at individual companies.
Plans for 2021
The Intereuropa Group will continue to implement measures to increase energy efﬁciency, and is planning the following
in 2021 in that regard:
• the installation of more cost-efﬁcient exterior and interior lighting at logistics centres: EUR 307,575; and
• the implementation of energy efﬁcient measures relating to the cooling and heating of buildings and facilities: EUR 181,301.
The total value of planned investments in more energy efﬁcient solutions in 2021 is EUR 608,875.
In addition to these investments, an energy inspection of buildings will be conducted in 2021 in accordance with the
provisions of the Energy Act. A quality energy inspection of buildings will serve as the basis for the systematic approach to
implementing energy efﬁciency measures at companies.
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3.3 SOCIAL RESPONSIBILITY
The Intereuropa Group follows sustainable development guidelines, and responsibly manages its social impacts. The
Intereuropa Group strives for an inclusive relationship with its most important stakeholders in line with the Group's values.
Through its cooperation and positive partnership attitude, it encourages and supports the development of sports, culture
and education, and thus implements its mission with support from various stakeholders. It is vital that in supporting these
activities their development is also maintained in the future. Intereuropa Group subsidiaries are aware that they operate in
a co-dependent society where, in addition to generating positive operating results, they contribute to the development
of the social and economic environment through their expertise, and the provision of logistics services and even ﬁnancial
resources. The Group demonstrates its concern for social issues by supporting projects that also form a link between
Intereuropa’s core activity and the local environment. That principle applies to all Group companies, which contribute
to a higher quality of life, promote and enhance Intereuropa’s good reputation in the eyes of the general public, and
strengthen the Intereuropa service brand and positive relations with employees, customers, suppliers, investors and other
stakeholders through their sponsorship and donation activities.
The year 2020 was characterised by the management of the COVID-19 pandemic, and also called for increased social
responsibility from the parent company and the Intereuropa Group. The Intereuropa Group and Pošta Slovenije Group
combined forces to organise logistics for a donation of protective equipment from China. It helped children from Bosnia
and Herzegovina through its subsidiary Intereuropa RTC, d. d., Sarajevo. By donating used computers, it supported
Telekom BiH's campaign that enabled free internet access to children who were forced to take lessons from home. It
enabled the Maribor University Medical Centres (UKC Maribor) to operate under difﬁcult circumstances and donated the
lease of a container free-of-charge. The subsidiary Interagent, d. o. o. supported the activity of the Slovenian Friends of
Youth Association and the VID Charitable Institute from Kranj.
The parent company Intereuropa, d. d. is also socially active through the support it provides to various educational
institutions in the local and broader environment. To that end, it provided 11 secondary school and tertiary level students
the opportunity to perform their mandatory internships.
The Group earmarked EUR 12.354 in 2020 for sponsorships and donations, a slight decrease relative to 2019. Intereuropa,
d. d. supported certain socially beneﬁcial projects and strove for the equal treatment of all areas of society to the best of
its operational abilities. The socially responsible activities focusing on assisting those affected during the coronavirus and
support for the ‘Izvozniki.si’ (Slovenian exporters) project were amongst the most notable.
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3.4 QUALITY MANAGEMENT SYSTEM
Implementation of the quality strategy
The year 2020 was characterised by the successful completion of external assessments at all three certiﬁed companies.
After its introduction at the parent company, a reclamation model was introduced in the scope of the CRM project at two
subsidiaries. A total of 74.2% of all Group employees currently work at companies certiﬁed according to the ISO 9001:2015
quality management standard (Intereuropa, d. d., Intereuropa, logističke usluge, d. o. o., Zagreb, Intereuropa RTC, d. d.,
Sarajevo), which is more than two percentage points less than the previous year.
Quality indicators
Customer satisfaction with rendered logistics services correlates to the extent to which their requirements have been met
in relation to the safety of merchandise during transportation or storage, the speed of rendered services, and accurate
and complete documentation.
The customer satisfaction survey emphasised the importance of quality customer relations and the high satisfaction
of customers with friendliness and professionalism in that respect, and slightly less satisfaction with the resolution of
reclamations.
The number of reclamations received by Intereuropa, d. d. was up by 25% in 2020, while the value of reclamations was also
up by 13% relative to 2019. The number of recorded reclamations has increased since the centralisation of the reclamation
resolution function in 2018, while the increase during the year was primarily linked to an increase in reclamations in domestic
transactions.
The speed of delivery at Intereuropa, d. d., measured by the proportion of shipments delivered the next day in domestic
transactions, was down by 0.25 percentage points relative to the previous year, to stand at 94.53%, and was as high as
98.6% if the absence of the recipient is taken into account as a reason for non-delivery.
The proportion of credit notes, which serves as a measure of the accuracy of documentation, has fallen for several years,
but has stabilised over the last two years at around 1.48%.
Internal verification of the HACCP food safety management system
The parent company Intereuropa, d. d. has a food and fodder safety management system in place in its warehouses in
accordance with the law and the HACCP system (Hazard Analysis and Critical Control Point). The aim of the system is to
ensure the highest possible safety for stored and transported goods and food, fodder and products, and substances and
packing materials that come into contact with food and fodder. The HACCP system represents the most effective method
for preventing food-borne diseases and diseases that are transmitted through fodder and products, and substances and
packing materials that come into contact with food and fodder.
The warehouse in Maribor, Dravograd and Celje have a permanent HACCP system in place. The other warehouses have
a temporary HACCP system.
In accordance with the employee training and qualiﬁcation programme regarding food hygiene and the HACCP system
veriﬁcation programme, which includes veriﬁcation of the fulﬁlment of best-practice requirements regarding food and
fodder safety, an external assessment was carried out at the Celje, Koper, Vrtojba, Logatec and Jesenice locations. The
assessment identiﬁed one inconsistency, while two recommendations were also issued in that process. In conjunction with
veriﬁcation of the HACCP system, training was organised at the aforementioned locations for employees who come into
contact with food.
Transactions with food and fodder at subsidiaries are carried out in accordance with valid local legislation. The HACCP
system has been established at Intereuropa, d. o. o. Zagreb, and is in the process of being established ta AD Intereuropa-
logističke usluge, Belgrade.
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96
Handling of hazardous materials
The parent company is registered with the Chemical Ofﬁce of the Republic of Slovenia to store hazardous chemicals
in warehouses located in Maribor, Celje, Vrtojba, Ljubljana and Jesenice. Due to the types and quantities of hazardous
materials stored at the warehouse in Maribor, the latter is also bound by the Decree on the prevention of major accidents
and mitigation of their consequences (Ofﬁcial Gazette of the Republic of Slovenia, No. 22/16), and holds the requisite
environmental permit.
A regular inspection was carried out in October at the Maribor organisational unit by the Slovenian Inspectorate for the
Environment and Spatial Planning. The inspection identiﬁed certain deﬁciencies in connection with ensuring the traceability
of changes at the plant. The deﬁciencies were eliminated by the prescribed deadline.
All employees who work with hazardous materials in warehouses and who are involved in organising the transport of
hazardous materials must be properly qualiﬁed. Employee training is conducted according to the training programme for
work with hazardous materials and in line with the legally prescribed deadlines.
The storage and transportation of hazardous materials are carried out at subsidiaries abroad in accordance with the
applicable national and international regulations. Employees involved in organising the transport of hazardous materials
are appropriately trained.
External verification of the quality of services
TABLE 34: OVERVIEW OF EXTERNAL VERIFICATIONS OF QUALITY WITHIN THE INTEREUROPA GROUP IN 2020
Company Standard
Certification
body
Month of
external
assessment
Non-
compliance
Recommenda-
tions
Intereuropa,d.d.,
Koper
ISO 9001:2015 SIQ March 0 10
Intereuropa, logističke
usluge,d.o.o., Zagreb
ISO 9001:2015 SIQ June 0 8
Intereuropa RTC d.d.,
Sarajevo
ISO 9001:2015 SIQ October 0 6
Three external assessments were carried out within the Intereuropa Group in 2020. No cases of non-compliance were
identiﬁed by external assessors, who issued several recommendations for improvement.
Intereuropa, logističke usluge, d. o. o., Zagreb conducted a reassessment, while the other two companies a conducted
regular assessment.
External verification of the storage system for organic products imported from third countries
For the fourteenth consecutive year, Intereuropa’s Koper organisational unit passed an external assessment of the
compliance of warehousing of organic products imported from third countries, as set out in Regulation (EC) No 834/2007
and Regulation (EC) No 889/2008. The assessor found no inconsistencies nor issued any recommendations. The business
unit thus extended the validity of the organic certiﬁcate for one year.
Plans for 2021
The planned activities in relation to ensuring the high quality of logistics services in 2021 primarily relate to gradual
improvements in quality characteristics with which customer were not sufﬁciently satisﬁed. After the introduction of a new
IT solution for the management of reclamations, certiﬁed companies will begin to focus on the gradual improvement of
their reclamation management system on the basis of better-quality information.
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3.5 RESPONSIBILITY TO SUPPLIERS
The integrated supplier relationship management system is deﬁned in the Rules of Procedure on Quality Management,
in organisational regulations, work instructions and the Group’s other rules. In order to ensure a smooth work process, the
Group strives to maintain professional, sound, reciprocal and fair relationships with our key suppliers and other suppliers
of important resources.
Suppliers are categorised according to their importance and abilities as:
• partner suppliers with whom long-term cooperation agreements have been entered into;
• authorised suppliers assessed as capable and reliable;
• suppliers used in one-off and minor purchases; and
• suppliers that do not meet selection criteria.
Suppliers for major business lines are assessed annually and placed on the appropriate list (e.g. authorised or unapproved)
based on a standard methodology and predeﬁned criteria, such as the prices of services and payment terms, quality
and deadlines/delivery terms, mutual cooperation, supplier references and experience from past cooperation, credit
ratings and other area-speciﬁc criteria. Suppliers are informed of achieved results, and encouraged to provide comments,
recommendations and wishes with the aim of improving and strengthening relations.
To ensure the equal position of suppliers and optimal solutions, selections are typically made from at least two suppliers,
taking into account the applicable regulations and the relevant supplier list. Selections are made by a selection committee
or other responsible person, in cooperation with experts from the relevant area. The appropriateness and quality of services
rendered or materials supplied are also controlled regularly, while timely and appropriate measures are implemented
to ensure the satisfaction of end-users. Another criterion in the supplier selection process is the possibility of mutual
cooperation.
Objectives for 2021
The core objective of supplier management remains the timely supply of the work process with services and materials of
the requisite quality at the most affordable price. Emphasis is placed on establishing and maintaining long-term business
relationships with selected suppliers and on the strengthening of mutual cooperation.
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3.6 COMMUNICATION WITH KEY PUBLICS
In accordance with the adopted Corporate Governance Policy of Intereuropa, d. d., the Intereuropa Group implements
an active communication strategy and thus provides the public with all information regarding the performance of the
Company and the Intereuropa Group. The Group focuses on the correct and timely notiﬁcation of the public, and the
establishment and strengthening of dialogue with various stakeholders. Communication activities are geared towards
strengthening the Group’s reputation and recognition, and increasing brand recognition on all markets where it is present.
Communication with the financial public
Details regarding communication with the ﬁnancial public are given in section 2.7 Shares and ownership structure.
Communication with the general public
The Intereuropa Group ensures the good reputation and positive image in the eyes of the general public through
regular and comprehensive communication. Communication with the general public takes the form of periodic press
releases, while the parent company regularly responds to journalists’ questions. To that end, we consistently comply with
the information disclosure rules to which we are bound as a public limited company listed on the prime market of the
Ljubljana Stock Exchange.
Communication with employees
Through their dedication, competences and professionalism, employees create a friendly environment for business
partners and other important stakeholders of the Company. Communication with employees contributes to their
awareness of the Group’s mission, vision, values and strategy, and to the recognition of the role of the individual within
the Group. Employees are also the ﬁrst-line ambassadors of the Company, and through their conduct strengthen the
positive reputation and recognition of the Company. The Intereuropa Group promotes communication that is based on
a fair and equitable relationship. The objectives of internal communication are achievement of the Company’s strategic
objectives, the strengthening of afﬁliation with the Company and the successful integration of new employees into the
organisational culture. The Intereuropa Group communicates with employees via various communication channels. Key
communication tools include internal websites (intranet), email and personal communication. The Group strives to actively
include employees in its operations. This is achieved by providing regular information regarding the latest developments
and through employees’ participation in management via the Works Council, trade union representatives and employee
representatives on the parent company’s Supervisory Board. The parent company’s Works Council regularly invites the
Company’s management to its sessions, and thus provides current information and ensures mutual dialogue about open
issues.
Communication with customers
The Intereuropa Group operates in accordance with its medium-term development strategy and through carefully planned
communication activities promotes comprehensive logistical services. The Group thus strengthens its reputation and the
recognition of the Intereuropa service brand in the eyes of customers, and ensures the integration of different participants
along the supply chain. Satisﬁed customers constitute the basis for long-term partnerships. For this reason, special attention
is given to communication with customers. In its customer relations, the Group advocates for two-way communication and
long-term relations that form through regular and successful cooperation. It therefore strengthens relations through regular
personal visits. These relations are the fruit of long-term cooperation, and the result of the loyalty and trust of customers.
Through regular communication, the Group identiﬁes the needs and expectations of customers, and responds to them
in a timely manner. The Group also pays special attention to identifying and exploiting new potential opportunities on
the market. The Group maintained and strengthened customer relations in 2020 through regular participation in expert
consultations, conferences and other events. However, due to the adverse COVID-19 situation it mostly participated in
these events remotely. The Group consolidated the recognition and reputation of Intereuropa in 2020 in part through
the application of a standard corporate identity on promotional materials, business gifts and on websites in all countries in
which the Group operates.
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04
Financial
report
04 FINANCIAL REPORT
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102
4.1 FINANCIAL STATEMENTS OF THE INTEREUROPA GROUP AND
INTEREUROPA, D. D.
INCOME STATEMENT
(in EUR) Notes
Intereuropa Group Intereuropa, d. d.
2020 2019 2020 2019
Sales revenue 1 150,725,168 160,352,650 103,964,027 111,827,562
Losses from the derecognition of operating receivables
and assets from contracts with customers
-14,917 -45,829 -10,410 -45,668
Other operating revenues 2 2,142,090 2,892,033 976,691 706,322
Costs of goods, materials and services 3 -108,787,544 -116,356,145 -76,747,408 -83,392,697
Labour costs 4 -29,124,467 -28,933,556 -18,900,096 -18,914,501
Amortisation and depreciation 5 -6,464,008 -7,224,242 -3,771,916 -4,426,966
Impairment losses on receivables (including the reversal of
impairment losses)
6 -268,967 461,911 -127,618 531,710
Other operating expenses 7 -2,443,059 -3,623,286 -1,043,358 -1,244,490
Operating proﬁt 5,764,296 7,523,536 4,339,912 5,041,272
Interest income 99,255 453,612 141,040 475,215
Other ﬁnance income 1,179 361,896 102,461 1,842,811
Finance costs – costs of ﬁnancing -852,045 -1,857,195 -764,026 -1,758,758
Impairment losses on loans granted and deposits -5,259 -10,400 -329,263 -151,450
Other ﬁnance costs -445,490 -29,991 -496,323 -342,451
Proﬁt/loss from ﬁnancing activities 8 -1,202,360 -1,082,078 -1,346,111 65,367
Investment result recognised according to the equity
method
9 785 62 0 0
Proﬁt from ordinary operations 4,562,721 6,441,520 2,993,801 5,106,639
Corporate income tax (including deferred taxes) 10 -994,768 -2,244,867 -679,289 -1,718,691
Net proﬁt for the accounting period 3,567,953 4,196,653 2,314,512 3,387,948
Net proﬁt pertaining to controlling interests 3,647,267 3,897,755 0 0
Net proﬁt or loss pertaining to non-controlling interests -79,314 298,898 0 0
Basic and diluted earnings per ordinary share 11 0.21 0.23 0.08 0.12
The notes are a constituent part of the ﬁnancial statements and must be read in connection with them.
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103
STATEMENT OF OTHER COMPREHENSIVE INCOME
(in EUR)
Intereuropa Group Intereuropa, d. d.
2020 2019 2020 2019
Net proﬁt for the accounting period 3,567,953 4,196,653 2,314,512 3,387,948
Other comprehensive loss -1,065,034 -1,714,803 -317,290 -1,166,235
Items that will be reclassiﬁed to proﬁt or loss -594,914 -168,883 0 0
Change in the fair value of available-for-sale ﬁnancial assets -2,339 -359 0 0
Foreign currency translation differences -592,575 -168,524 0 0
Items that will not be reclassiﬁed to proﬁt or loss -470,120 -1,545,920 -317,290 -1,166,235
Change in fair value of land -79,164 -899,375 0 -542,564
Transfer of revaluation surplus for land to retained earnings -483,046 -817,322 36 -693,214
Change in deferred taxes -72,598 132,453 -172,225 35,127
Change in retained earnings from the transfer of the revaluation surplus
for land
483,046 817,322 -36 693,214
Actuarial losses for termination beneﬁts upon retirement -164,613 -711,385 -96,356 -615,570
Transfer of actuarial losses to retained earnings -68,288 -19,929 -48,709 -7,430
Corporate income tax on retained earnings -85,457 -47,684 0 -35,798
Total comprehensive income 2,502,919 2,481,850 1,997,222 2,221,713
Total comprehensive income pertaining to controlling interests 2,628,400 2,151,952 0 0
Total comprehensive income pertaining to non-controlling interests -125,481 329,898 0 0
The notes are a constituent part of the ﬁnancial statements and must be read in connection with them.
INTEREUROPA / FINANCIAL REPORT / 2020
104
STATEMENT OF FINANCIAL POSITION
(in EUR) Notes
Intereuropa Group Intereuropa, d. d.
31 December
2020
31 December
2019
31 December
2020
31 December
2019
ASSETS
Property, plant and equipment 12 141,310,696 145,261,598 75,789,593 77,641,425
Investment property 13 22,742,292 23,961,885 16,667,598 17,187,730
Intangible assets 14 2,982,482 3,363,229 2,808,118 3,153,801
Other non-current assets 15 27,602 23,105 27,602 23,105
Non-current operating receivables 16 239,799 303,320 233,652 291,236
Deferred tax assets 10 7,047,360 7,595,723 5,037,469 5,523,068
Long-term loans granted and deposits 17 39,898 52,544 0 0
Other non-current ﬁnancial assets 18 93,597 185,510 44,518,176 44,889,499
TOTAL NON-CURRENT ASSETS 174,483,726 180,746,914 145,082,208 148,709,864
Available-for-sale assets 19 337,638 2,700,944 0 0
Inventories 25,577 93,390 4,406 7,458
Short-term loans granted and deposits 17 2,598,166 1,010,109 2,198,062 2,325,951
Assets from contracts with customers 20 510,601 533,431 341,298 349,131
Current operating receivables 21 30,342,297 31,398,184 22,173,255 22,409,866
Current receivables for corporate income tax 215,699 189,744 0 0
Other current assets 22 320,583 395,199 99,001 189,326
Cash and cash equivalents 23 11,609,486 6,283,037 2,374,180 2,756,729
TOTAL CURRENT ASSETS 45,960,047 42,604,038 27,190,202 28,038,461
TOTAL ASSETS 220,443,773 223,350,952 172,272,410 176,748,325
EQUITY
Equity pertaining to controlling interests 117,351,472 114,723,072 89,224,850 87,227,628
Share capital 27,488,803 27,488,803 27,488,803 27,488,803
Share premium account 18,454,667 18,454,667 18,454,667 18,454,667
Proﬁt reserves 5,160,392 5,160,392 2,748,880 2,748,880
Fair value reserves 44,420,915 45,023,339 30,544,627 30,627,173
Foreign currency translation differences -7,229,453 -6,668,465 0 0
Retained earnings 25,408,881 21,366,581 7,673,361 4,520,157
Net proﬁt 3,647,267 3,897,755 2,314,512 3,387,948
Equity pertaining to non-controlling interests 7,498,867 7,634,819 0 0
TOTAL EQUITY 24 124,850,339 122,357,891 89,224,850 87,227,628
LIABILITIES
Provisions 26 2,793,522 2,696,699 1,924,930 1,971,620
Non-current deferred income 62,639 65,433 62,639 65,434
Non-current ﬁnancial liabilities 27 54,199,169 2,719,484 52,642,354 870,375
Non-current operating liabilities 28 935,164 1,026,501 878,475 1,009,644
Deferred tax liabilities 10 10,693,502 10,820,454 7,336,927 7,336,921
TOTAL NON-CURRENT LIABILITIES 68,683,996 17,328,571 62,845,325 11,253,994
Current ﬁnancial liabilities 27 4,419,148 58,978,257 6,044,691 61,505,027
Liabilities from contracts with customers 535,499 547,740 7,004 15,941
Current operating liabilities 28 21,404,350 23,792,951 13,936,746 16,606,986
Current corporate income tax liabilities 537,311 309,640 209,180 126,735
Current deferred income 13,130 35,902 4,614 12,014
TOTAL CURRENT LIABILITIES 26,909,438 83,664,490 20,202,235 78,266,703
TOTAL LIABILITIES 95,593,434 100,993,061 83,047,560 89,520,697
TOTAL EQUITY AND LIABILITIES 220,443,773 223,350,952 172,272,410 176,748,325
The notes are a constituent part of the ﬁnancial statements and must be read in connection with them.
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105
CASH FLOWS STATEMENT
(in EUR)
Intereuropa Group Intereuropa, d. d.
2020 2019 2020 2019
Cash ﬂows from operating activities
Net proﬁt for the accounting period 3,567,953 4,196,653 2,314,512 3,387,948
Adjustments for:
Amortisation and depreciation 6,464,008 7,224,242 3,771,916 4,426,966
Impairments and write-offs of property, plant and equipment, and
investment property
182,944 548,693 13,363 52,148
Gains on the sale of property, plant and equipment, and assets held
for sale
-392,020 -436,152 -17,920 -186,243
Income from the reversal of impairment losses on property, plant and
equipment, and investment property
-118,651 -1,333,415 -76 -251,036
Losses from the sale of property, plant and equipment 5,570 8,702 0 0
Losses from the derecognition of operating receivables and assets
from contracts with customers
14,917 45,829 10,410 45,668
Impairment losses on receivables (including the reversal of impairment
losses)
268,967 -461,911 127,618 -531,710
Impairments and write-offs of inventories 65,945 1,563 3,052 0
Other non-monetary expenses from the exclusion of a subsidiary from
the consolidated ﬁnancial statements
0 49,410 0 0
Finance income from interest -99,255 -453,612 -141,040 -475,215
Other ﬁnance income -1,179 -361,896 -102,461 -1,842,811
Finance costs – costs of ﬁnancing 852,045 1,857,195 764,026 1,758,758
Impairment losses on loans granted and deposits 5,259 10,400 329,263 151,450
Other ﬁnance costs 445,490 29,991 496,323 342,451
Investment result recognised according to the equity method -785 62
Corporate income tax (including deferred taxes) 994,768 2,244,867 679,289 1,718,691
Operating proﬁt before changes in net working capital and taxes 12,255,976 13,170,621 8,248,273 8,597,065
Changes in net working capital and provisions
Change in assets from contracts with customers 22,830 228,941 7,832 240,410
Changes in receivables 758,006 1,669,059 97,873 1,432,401
Changes in inventories 1,868 -24,010 0 0
Changes in other current assets 70,119 67,093 85,828 -44,022
Changes in liabilities from contracts with customers -12,241 4,952 -8,937 -1,201
Changes in operating liabilities -2,831,855 -1,515,952 -3,069,644 -1,122,010
Changes in provisions -158,850 -362,007 -199,154 294,412
Changes in non-current deferred income -2,794 -15,993 -2,795 -16,023
Income tax paid -527,118 -650,110 -283,463 -280,020
Net cash ﬂow from operating activities 9,575,941 12,572,594 4,875,813 9,101,012
INTEREUROPA / FINANCIAL REPORT / 2020
106
(in EUR)
Intereuropa Group Intereuropa, d. d.
2020 2019 2020 2019
Cash ﬂows from investing activities
Interest received 150,817 452,331 186,955 464,246
Dividends received and shares in proﬁt 0 8,200 25,991 909,102
Inﬂows from the sale of property, plant and equipment 2,703,342 3,446,240 56,693 2,917,342
Inﬂows from long-term loans granted 0 31,000 92,325 97,216
Inﬂows from long-term deposits placed 10,000 0 10,000 30,000
Net cash ﬂow from short-term loans granted 0 107,179 -300,000 -791,234
Net cash ﬂow from short-term deposits placed -1,598,402 4,320 0 -10,000
Transfer of short-term deposits placed to cash and cash equivalents 30,000 0 0 0
Inﬂows from the sale of other ﬁnancial assets 94,661 0 0 0
Outﬂows for the acquisition of property, plant and equipment -2,032,191 -3,329,142 -1,139,420 -1,987,311
Outﬂows for the acquisition of intangible assets -232,234 -325,210 -232,236 -314,121
Outﬂows for long-term deposits placed 0 -6,100 0 0
Outﬂows for increase in capital of subsidiaries 0 -78,205 -60,000 -62,000
Net cash ﬂow from investing activities -874,007 310,613 -1,359,692 1,253,240
Cash ﬂows from ﬁnancing activities
Inﬂows from long-term loans received 55,648,573 0 54,850,000 0
Interest paid -412,911 -1,900,112 -448,629 -1,780,032
Outﬂows for the repayment of long-term loans (and ﬁnance leases
during the comparative period)
-56,863,803 -7,400,220 -56,848,460 -7,338,211
Net cash ﬂow from short-term loans -277,059 -5,328,221 -1,000,000 -3,448,120
Payment of lease liabilities -1,420,804 -1,222,010 -451,581 -461,132
Dividends paid -22,899 -334,101 0 0
Net cash ﬂow from ﬁnancing activities -3,348,903 -16,184,664 -3,898,670 -13,027,495
Opening balance of cash and cash equivalents 6,283,037 9,578,271 2,756,729 5,429,972
Exchange rate differences relating to cash -26,582 6,223 0 0
Net cash ﬂow for the period from ordinary operations 5,353,031 -3,301,457 -382,549 -2,673,243
Closing balance of cash and cash equivalents 11,609,486 6,283,037 2,374,180 2,756,729
The notes ae a constituent part of the ﬁnancial statements and must be read in connection with them.
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STATEMENT OF CHANGES IN EQUITY FOR THE INTEREUROPA GROUP
(in EUR)
Share capital
Share premium account
PROFIT RESERVES FAIR VALUE RESERVES
Foreign currency
translation differences
RETAINED
EARNINGS
Equity pertaining to
controlling interests
Equity pertaining to non-
controlling interests
Total equity
Legal reserves
Reserves for
treasury shares
Treasury shares
(as deduction
item)
Reserves under
the Articles of
Association
Other reserves
Fair value reserves
for land
Fair value reserves
for financial assets
Provisions for
actuarial losses
Retained earnings
Net profit for the
accounting period
Balance as at 1 January 2020
27,488,803 18,454,667 4,655,544 180,394 -180,394 15,000 489,848 45,825,180 -46,387 -755,454 -6,668,465 21,366,581 3,897,755 114,723,072 7,634,819 122,357,891
Total comprehensive income
0 0 0 0 0 0 0 -454,279 -2,339 -145,806 -560,988 144,545 3,647,267 2,628,400 -125,481 2,502,919
Net proﬁt for the ﬁnancial year
0 0 0 0 0 0 0 0 0 0 0 3,647,267 3,647,267 -79,314 3,567,953
Other comprehensive income
0 0 0 0 0 0 0 -454,279 -2,339 -145,806 -560,988 144,545 0 -1,018,867 -46,167 -1,065,034
Transactions with owners
Transfer of net proﬁt from the
previous year to retained earnings
0 0 0 0 0 0 0 0 0 0 0 3,897,755 -3,897,755 0 0 0
Dividends and shares in proﬁt
0 0 0 0 0 0 0 0 0 0 0 0 0 0 -10,471 -10,471
Closing balance as at 31 December
2020
27,488,803 18,454,667 4,655,544 180,394 -180,394 15,000 489,848 45,370,901 -48,726 -901,260 -7,229,453 25,408,881 3,647,267 117,351,472 7,498,867 124,850,339
Balance as at 1 January 2019
27,488,803 18,454,667 4,659,023 180,394 -180,394 15,000 915,551 47,231,758 -46,746 -106,114 -6,487,064 15,924,119 4,522,123 112,571,120 7,658,809 120,229,929
Total comprehensive income
0 0 0 0 0 0 0 -1,406,578 359 -649,340 -181,401 491,157 3,897,755 2,151,952 329,898 2,481,850
Net proﬁt for the ﬁnancial year
0 0 0 0 0 0 0 0 0 0 0 0 3,897,755 3,897,755 298,898 4,196,653
Other comprehensive income
0 0 0 0 0 0 0 -1,406,578 359 -649,340 -181,401 491,157 0 -1,745,803 31,000 -1,714,803
Transactions with owners
Transfer of net proﬁt from the
previous year to retained earnings
0 0 0 0 0 0 0 0 0 0 0 4,522,123 -4,522,123 0 0 0
Dividends and shares in proﬁt
0 0 0 0 0 0 0 0 0 0 0 0 0 0 -353,888 -353,888
Transfer of reserves to retained
earnings due to exclusion of a
subsidiary from the consolidated
ﬁnancial statements
0 0 -3,479 0 0 0 -60,521 0 0 0 0 64,000 0 0 0 0
Settlement of loss brought forward
0 0 0 0 0 0 -365,182 0 0 0 0 365,182 0 0 0 0
Closing balance as at 31 December
2019
27,488,803 18,454,667 4,655,544 180,394 -180,394 15,000 489,848 45,825,180 -46,387 -755,454 -6,668,465 21,366,581 3,897,755 114,723,072 7,634,819 122,357,891
INTEREUROPA / FINANCIAL REPORT / 2020
108
STATEMENT OF CHANGES IN EQUITY FOR THE INTEREUROPA, D. D.
(in EUR)
Share capital
Share premium
account
PROFIT RESERVES FAIR VALUE RESERVES RETAINED EARNINGS
Total equity
Legal reserves
Reserves for
treasury shares
Treasury shares
(as deduction
item)
Fair value reserves
for land
Provisions for
actuarial losses
Retained earnings
Net profit for the
accounting period
Balance as at 1 January 2020 27,488,803 18,454,667 2,748,880 180,394 -180,394 31,278,451 -651,278 4,520,157 3,387,948 87,227,628
Total comprehensive income 0 0 0 0 0 29 -82,575 -234,744 2,314,512 1,997,222
Net proﬁt for the ﬁnancial year 0 0 0 0 0 0 0 0 2,314,512 2,314,512
Other comprehensive income 0 0 0 0 0 29 -82,575 -234,744 0 -317,290
Transactions with owners
Transfer of net proﬁt from the previous year to
retained earnings
0 0 0 0 0 0 0 3,387,948 -3,387,948 0
Closing balance as at 31 December 2020 27,488,803 18,454,667 2,748,880 180,394 -180,394 31,278,480 -733,853 7,673,361 2,314,512 89,224,850
Balance as at 1 January 2019 27,488,803 18,454,667 2,748,880 180,394 -180,394 32,279,432 -94,188 94,188 4,034,132 85,005,914
Total comprehensive income 0 0 0 0 0 -1,000,980 -557,091 391,837 3,387,948 2,221,714
Net proﬁt for the ﬁnancial year 0 0 0 0 0 0 0 3,387,948 3,387,948
Other comprehensive income 0 0 0 0 0 -1,000,980 -557,091 391,837 0 -1,166,234
Transactions with owners
Transfer of net proﬁt from the previous year to
retained earnings
0 0 0 0 0 0 0 4,034,132 -4,034,132 0
Closing balance as at 31 December 2019 27,488,803 18,454,667 2,748,880 180,394 -180,394 31,278,452 -651,279 4,520,157 3,387,948 87,227,628
The notes ae a constituent part of the ﬁnancial statements and must be read in connection with them
.
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109
4.2 BASIS FOR PREPARATION AND NOTES TO THE FINANCIAL
STATEMENTS
4.2.1. BASIS OF PREPARATION
Reporting entity
Intereuropa Group and is established in Koper. Its registered ofﬁce is located at Vojkovo nabrežje 32, 6000 Koper,
Slovenia. The Company provides logistics services through its own network of business units. Presented and explained in
the report are the consolidated ﬁnancial statements of the Intereuropa Group for the year ended 31 December 2020 and
the separate ﬁnancial statements of Intereuropa, d. d. for the year ended 31 December 2020.
The current controlling company of the Intereuropa Group is Pošta Slovenije, d. o. o., with its registered ofﬁce at Slomškov
trg 10, 2500 Maribor. The company’s founder is the Republic of Slovenia, while its core activity is the provision of universal
postal services.
The consolidated ﬁnancial statements of the Intereuropa Group for the year ended 31 December 2020 include the
ﬁnancial statements of the parent company Intereuropa, d. d., the ﬁnancial statements of subsidiaries and the attributable
results of an associate.
Subsidiaries included in the consolidated ﬁnancial statements:
In Slovenia:
• Interagent, d. o. o., Koper – 100%
• Interzav, d. o. o., Koper – 71.28 %
Abroad:
• TOV Intereuropa, Kiev, Ukraine – 100%
• Intereuropa, logističke usluge, d. o. o., Zagreb, Croatia – 99.96%
• Intereuropa Skopje, d. o. o., Skopje, North Macedonia – 99.56 %
• Intereuropa RTC, d. d., Sarajevo, Bosnia and Herzegovina – 95.77%
• Intereuropa Kosova L. L. C., Prishtina, Kosovo – 90%
• TOV TEK ZTS, Uzhhorod, Ukraine – 89.93%
• AD Intereuropa logističke usluge, Belgrade, Serbia – 73.62%;
• Zetatrans A.D., Podgorica, Montenegro – 69.27 %
• Intereuropa Sajam, d. o. o., Zagreb, Croatia – 51%
Associate included in the consolidated ﬁnancial statements:
• Rail Cargo Logistic, železniška špedicija, d. o. o. – 26 %
Intereuropa Global logistics Service Albania Shpk, Durrës, Albania is not included in the consolidated ﬁnancial statements
because it is not material for the fair presentation of the Group’s ﬁnancial position, as its operations are limited.
Statement of compliance
The ﬁnancial statements of the Group and Intereuropa have been prepared in accordance with the International Financial
Reporting Standards (IFRS), as adopted by the European Union, and the interpretations of the International Financial
Reporting Interpretations Committee (IFRIC), likewise adopted by the European Union. They also include additional
clariﬁcations in accordance with the Companies Act.
In terms of consolidating EU standards, there were no differences in the Company’s accounting policies on the statement
of ﬁnancial position date between the IFRS as applied and the IFRS as adopted by the European Union.
The Management Board of Intereuropa approved the consolidated ﬁnancial statements and the separate ﬁnancial
statements of the Company on 13th of April 2021.
Basis of measurement
The ﬁnancial statements have been prepared on a cost basis, except for land and ﬁnancial assets measured at fair value, for
which fair value is applied. The methods used for measurement are described 2.1.
INTEREUROPA / FINANCIAL REPORT / 2020
110
Functional and reporting currency
The ﬁnancial statements were prepared in euros, i.e. the functional and presentation currency of Intereuropa. Deviations of
+1 or -1 in tables with disclosures are possible due to rounding.
Use of estimates, judgements and assumptions
In preparing the ﬁnancial statements, the management made estimates, judgments and assumptions that affect the
application of accounting policies and the disclosed amounts of assets, liabilities, revenues and expenses. Actual results
may differ from these estimates.
Information regarding signiﬁcant assessments of uncertainty and critical judgements drawn up by the management in the
application of accounting policies that have the greatest impact on the amounts in the ﬁnancial statements are presented
below.
Significant estimates, judgements and assumptions
• The ﬁnancial statements of the Group and Company are prepared on a going concern basis.
• Estimates relating to the determination of the value of right-of-use assets:
- identiﬁcation of lease agreements: the Group and Company deﬁne as lease agreements those agreements that give
them the right to control the leased asset. The Group and Company are deemed to control an asset if they can use that
asset and if they are entitled to the economic beneﬁts that derive from its use;
- determination of the lease term: the Group and Company deﬁne the lease term as the period in which the lease cannot
be terminated, together with:
• the period for which the validity of the lease may be extended, if it is reasonably certain that the aforementioned
option will be used, and
• the period for which the lease may be terminated, if it is reasonably certain that the aforementioned option will be
used.
In cases when the contractual period is not deﬁned in those agreements, the Group estimates that period based on an
assessment of needs for the use of a speciﬁc asset, taking into account the needs of the business process of providing
logistics services; and
- determination of the discount rate: the Group and Company deﬁned the discount rate as the amount of the interest
rate according to which they can obtain a comparable asset with a similar maturity. If the discount rate cannot be
determined, the Group uses the incremental borrowing rate.
• When testing non-ﬁnancial assets for impairment, the Group compared the recoverable amount of assets with their
carrying amount, and recognised impairments if the carrying amount of those assets exceeded their recoverable amount
or reversed impairments, if they were previously recognised. The appraiser based their assessment of the recoverable
amount of buildings and investment property in Montenegro as at 30 September 2020 on analyses of the real estate
market and other relevant data, in which the following key assumptions were taken into account: a capitalisation rate of
between 9.75% and 10.5%, a deduction for vacancy of 10% and a deduction for bad debt of 1%. When assessing the
recoverable amount of buildings in Ukraine, the appraiser took into account a capitalisation rate of 13.5%, a deduction for
vacancy of 12.5% and a deduction for bad debt in the amount of 1.25% (Notes 12 and 13).
• Useful life of depreciable assets (Notes 12, 13 in 14)
By no later than the end of the ﬁnancial year, the management veriﬁes the useful life of depreciable assets, taking into
account the technical and economic obsolescence thereof.
• Value of doubtful receivables (Note 31)
The Group and Company recognise impairment losses on receivables based on the expected credit loss model
using the simpliﬁed approach in accordance with IFRS 9. The key assumption of the model used by the Group and
Company is that the rate of expected credit losses in connection with trade receivables ﬂuctuates in line with the
economic cycle, which means that expected credit losses are lower during a period of growth and higher during a
recession. The model also uses a forward-looking approach, where forecasts of economic activity are used to forecast
future credit losses. The key judgement that must be made is thus whether historical credit loss rates in relation to
historical economic activity are also appropriate for forecasting expected credit losses taking into account forecasts of
future economic activity.
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111
• Valuation of land (Note 12)
When measuring the fair value of land, the Group and Company take into account the ability of a market participant to
generate economic beneﬁts through the best use of an asset or its sale to another market participant. An assessment of
indicators of impairment or a change in fair value for ﬁnancial reporting purposes was carried out on 30 September 2020
with the help of an independent appraiser. The existence of indicators of impairment were reassessed and changes in key
assumptions that were applied in the appraisal from 2019 were analysed taking into account the impact of the COVID-19
epidemic, where no need to draw up new appraisals was identiﬁed, except for the companies in Montenegro and
Ukraine for which new real estate appraisals were performed. For the companies in Montenegro and Ukraine, fair value
was assessed in the appraisal of land that the Group/company in question carry at fair value, using comparable market
prices.
• Valuation of equity instruments measured at fair value (Note 18)
The fair value of ﬁnancial assets measured at fair value through proﬁt or loss is determined taking into account a quoted
market price at the end of the reporting period or based on other available data. All assets measured at fair value are
classiﬁed to the fair value hierarchy based on the level of input data required for the measurement of fair value:
• level 1: market prices from an active market for similar assets;
• level 2: a valuation model that is directly or indirectly based on market inputs; and
• level 3: a valuation model that is not based on market inputs.
The fair value hierarchy is presented in Note 30.
• Recognition of deferred tax assets and liabilities, and the potential use thereof (Note 10)
The management assessed the creation of deferred taxes from tax losses based on past experiences and data from
a projection of operations for a ﬁve-year period, i.e. from 2021 to 2025, and taking into account the valid tax rate and
changes to tax legislation from 1 January 2020 on, as well as planned sales of obsolete land. The aforementioned
projection forecasts moderate growth in revenues in the context of the Group’s existing operations. Unused tax losses
from previous years do not derive from ordinary operations, but are the result of extraordinary events. The sources for the
utilisation of tax losses are taxable proﬁt from the income statement and 50% of the revaluation surplus for land, assuming
that the tax base will enable utilisation in that amount (besides other allowances). The projection assumes that the Group
and Company are going concerns. In the event of negative deviations from the expected tax basis, the management
will reassess the possibility of utilising unused tax losses and correct the balance of deferred taxes from unused past tax
losses accordingly.
The Group and Company assessed that the period deemed the acceptable foreseeable future for the purpose of
assessing the utilisation of tax losses is ﬁve years given the circumstances in connection with the COVID-19 epidemic. The
period deemed the foreseeable future was seven years until 2020.
• Recognition of provisions and contingent liabilities (Notes 26 in 29)
The Group and Company have created provisions for termination beneﬁts upon retirement, employee anniversary
bonuses and lawsuits. Provisions are recognised if, as a result of a past event, present legal or constructive obligations
arise that can be estimated reliably, and it is probable that an outﬂow of economic beneﬁts will be required to settle
those obligations. The management regularly veriﬁes whether it is likely that there will be an outﬂow of resources yielding
economic beneﬁts in the settlement of a liability. The present value of termination beneﬁts and employee anniversary
bonuses is recorded in deﬁned-beneﬁt post-employment commitments. The basis for recognition comprises an
actuarial calculation that takes into account actuarial assumptions and estimates at the time of the calculation (e.g. discount
rate, estimated employee turnover rate, mortality rate and wage growth). Deﬁned-beneﬁt commitments are sensitive to
changes in the aforementioned estimates.
When assessing the probability of an outﬂow of the Group’s resources embodying economic beneﬁts for the settlement
of contingent liabilities for lawsuits, the management also uses the expert opinions of external lawyers who represent the
Group in disputes.
The Group treats as contingent liabilities any potential liabilities for which the management assesses that an outﬂow of
resources embodying economic beneﬁts is unlikely for the settlement of the liabilities or for which the amount of the
liabilities cannot be measured reliably. Such liabilities are not recognised in the ﬁnancial statements, but are disclosed
in the ﬁnancial report. If an outﬂow of beneﬁts is likely, the Group reclassiﬁes the potential liability to provisions in the
ﬁnancial statements when a change in probability occurs.
INTEREUROPA / FINANCIAL REPORT / 2020
112
• Judgement regarding the transfer of real estate to investment property (Notes 12 in 13)
When assessing whether real estate is deemed investment property, the Group and Company take into account criteria
for the classiﬁcation of real estate or parts of real estate to investment property.
• Judgement regarding the transfer of non-current assets to assets held for sale (Notes 12, 13 in 19)
The Group classiﬁes the portion of non-current assets that are very likely to be sold in the twelve months following the
balance-sheet date to assets held for sale within current assets (based on an incomplete sale or a decision adopted
by the management on the sale of assets on the reporting date). This applies to investment property, intangible assets
and non-current ﬁnancial assets, but only to land and buildings within property, plant and equipment on grounds of
materiality.
• Assessment of assumptions of control over subsidiaries and an associate (Note 18)
The Group and Company regularly verify whether a change in inﬂuence has occurred. The following are deemed
evidence of investors’ signiﬁcant inﬂuence:
a) representation on the management board or other decision-making body of a company in which the parent company
invests; and
b) participation in signiﬁcant decisions, including decisions regarding dividends and proﬁt-sharing.
The Company applied the following assumptions for the purpose of assessing the impairment of investments in
subsidiaries:
• the discounted cash ﬂow model and net asset value approach;
• a WACC of between 9.3% and 14.5%, taking into account a long-term inﬂation rate of 2%; and
• valuation based on data from projections of future operations for the period 2021 to 2025.
Changes in accounting estimates and assumptions
The management of Group companies has veriﬁed estimates, judgements and assumptions, and concluded that they
were the same as those that applied at the time the ﬁnancial statements as at 31 December 2019 were prepared, except
for the following estimates:
Changes in the useful life of buildings
When estimating the useful life of buildings, the Group and Company amended that estimate, such that the useful life of
high structures was changed to 50 years, while the useful life of low structures was changed to 30 years. The effect of the
change to the useful life of buildings was lower depreciation costs in 2020, as follows:
• by EUR 900,872 at the Group level, and
• by EUR 548,150 at the Company.
Change in the period applied for the foreseeable future
The Group and Company assessed that the period deemed the acceptable foreseeable future for the purpose of
assessing the utilisation of tax losses is ﬁve years given the circumstances in connection with the COVID-19 epidemic. The
period deemed the foreseeable future was seven years until 2020.
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113
4.2.2 SIGNIFICANT ACCOUNTING POLICIES OF THE GROUP
The accounting policies that the Group used in the preparation of its annual ﬁnancial statements are the same as those
applied in the preparation of the ﬁnancial statements for the previous ﬁnancial year. The exception is newly adopted or
amended standards and interpretations that the Group adopted for annual periods beginning on or after 1 January 2020,
as described below.
New standards and interpretations approved by the EU
Conceptual Framework for the IFRS
On 29 March 2018, the International Accounting Standards Board (IASB) published its revised Conceptual Framework for
Financial Reporting. The Conceptual Framework deﬁnes a comprehensive set of concepts used in ﬁnancial reporting, the
deﬁnition of standards, and instructions for the preparers of consistent accounting policies and for the easier understanding
and interpretation of standards. The IASB also issued ‘Amendments to References of the Conceptual Framework in the
IFRS’, which presents amendments to those standards and serves for the purpose of updating references to the revised
Conceptual Framework. The IASB’s aim is to provide support in the transition to the revised Conceptual Framework to
companies that adopt their accounting policies based on the instructions set out in the Conceptual Framework whenever
a speciﬁc transaction is not covered by any of the IFRS. For preparers who adopt their accounting standards based on the
Conceptual Framework, the revised version of that framework applies for annual periods beginning on or after 1 January
2020.
The application of amendments to the standard has no material impact on the consolidated ﬁnancial statements.
IFRS 3 Business Combinations (amendments)
The IASB published Deﬁnition of a Business (Amendments to IFRS 3) with the aim of eliminating uncertainty when
determining whether a transaction involves the acquisition of a business or group of assets. The amendments apply to
business combinations for which the acquisition date is in the ﬁrst annual reporting period beginning on or after 1 January
2020 and to asset acquisitions that occur on or after the beginning of that period. Early application of the amendments is
permitted.
The amended standard has no impact on the consolidated ﬁnancial statements.
IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting
Estimates and Errors: Definition of Material (amendments)
The amendments are effective for annual periods beginning on or after 1 January 2020. Early application of the
amendments is permitted. The amendments clarify the deﬁnition of the term ‘material’ and how it is used. According to the
new deﬁnition, “Information is material if omitting, misstating or obscuring it could reasonably be expected to inﬂuence
decisions that the primary users of general-purpose ﬁnancial statements make on the basis of those ﬁnancial statements,
which provide ﬁnancial information about a speciﬁc reporting entity.” The IASB also explained more clearly interpretations
that relate to that deﬁnition. The amendments also ensure the harmonisation of the deﬁnition of the term ‘material’ with all
other IFRS. The amended standard has no impact on the consolidated ﬁnancial statements.
Interest Rate Benchmark Reform – IFRS 9, IAS 39 and IFRS 7 (amendments)
In September 2019, the International Accounting Standards Board (IASB) published amendments to IFRS 9, IAS 39 and IFRS
7 during the ﬁnal phase of the response to the effects of interbank offered rate (IBOR) reform on ﬁnancial reporting by
companies. The amendments address matters that could affect ﬁnancial reporting in the period prior to the replacement
of an existing interest rate benchmark with an alternative interest rate, and the implications for speciﬁc hedge accounting
requirements set out in IFRS 9 Financial Instruments and IAS 39 Financial Instruments: Recognition and Measurement,
where a company must take into account the results of a forward-looking analysis of operations. Companies may apply a
temporary exemption for recognising all hedges on which the interbank offered rate reform could have a direct effect,
and may continue with the recognition of hedge accounting during the period of uncertainty prior to the replacement
of an existing interest rate benchmark with an alternative, nearly risk-free interest rate. Amendments to IFRS 7 Financial
Instruments: Disclosures relating to additional disclosures around uncertainty arising from the interest rate benchmark
reform. The amendments are effective for annual periods beginning on or after 1 January 2020 and must be applied
retrospectively. During the second phase of the project (draft), the IASB will address matters that could affect ﬁnancial
reporting in the period in which a company replaces an existing interest rate benchmark with a risk-free interest rate.
The amendments to standards have no impact on the consolidated ﬁnancial statements.
INTEREUROPA / FINANCIAL REPORT / 2020
114
IFRS 16 Leases – changes in lease payments as the result of the COVID-19 pandemic
(amendments)
The amendments are effective for annual periods beginning on or after 1 June 2020 and must be applied retrospectively.
The purpose of the amendments is to provide relief to lessees in the application of IFRS 16 as it relates to accounting for
changes in lease payments that are the direct result of the COVID-19 pandemic. The amendments allow lessees to apply
practical solutions, such that changes in lease payments that are the direct result of the pandemic need not be accounted
for in the same manner as other changes covered by IFRS 16, provided that all of the following conditions are met:
• a change in lease payments results in a change in consideration for a lease that is equal to or less than the consideration
deﬁned immediately prior to that change;
• each reduction in lease payments only affects payments that according to the original agreement fall due for payment
on or before 30 June 2021; and
• all other conditions of the lease remain largely unchanged.
The application of the new amendments to the standard has no material impact on the consolidated ﬁnancial statements.
New standards and interpretations not yet approved by the EU
Amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates
and Joint Ventures: Sale or Contribution of Assets between an Investor and its Associate or Joint
Venture
The amendments address discrepancies between the requirements of IFRS 10 and IAS 28 in the treatment of sales or
contributions of assets between an investor and its associate or joint venture. The main consequence of the amendments
is that a company must recognise the full amount of gains or losses when a transaction includes a business (regardless of
whether the business is housed in a subsidiary or not). For transactions involving assets that do not constitute a business,
only a partial gain or loss is recognised when assets are housed in a subsidiary. In December 2015, the International
Accounting Standards Board deferred the effective date of the standard indeﬁnitely while it waits for the results of the
research project on the accounting of assets under the equity method.
The Group does not expect the introduction of the amendments to have a material impact on its ﬁnancial statements.
IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-Current
(amendments)
The amendments are effective for annual periods beginning on or after 1 January 2022. Early application of the
amendments is permitted. In response to the COVID-19 pandemic, the IASB deferred the effective date for one year, i.e.
until 1 January 2023, to give companies sufﬁcient time to implement potential changes in the classiﬁcation of liabilities as
the result of amendments to the standard. The amendments offer companies assistance in deciding whether debt and
other liabilities with an uncertain settlement date should be classiﬁed as current or non-current liabilities in the statement
of ﬁnancial position, and thus ensure greater consistency in compliance with requirements. The amendments affect the
presentation of liabilities in the statement of ﬁnancial position, but do not change existing requirements in connection with
the measurement or timing of the recognition of assets, liabilities, revenues or expenses, or the information that is disclosed
in those items. The amendments also clarify requirements in connection with the classiﬁcation of debt that a company
could settle through the issue of equity instruments.
The Group does not expect the introduction of the amendments to have a material impact on its ﬁnancial statements.
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IFRS 3 Business Combinations IAS 16 Property, Plant and Equipment IAS 37 Provisions, Contingent
Liabilities and Contingent Assets, and annual improvements 2018–2020 cycle (amendments)
The amendments are effective for annual periods beginning on or after 1 January 2022. Early application of the amendments
is permitted. The IASB published the following limited amendments to the IFRS:
• The purpose of amendments to IFRS 3 Business Combinations is the updating of the reference in IFRS 3 to the
Conceptual Framework for ﬁnancial reporting, where requirements regarding accounting for business combinations
remain unchanged.
• IAS 16 Property, Plant and Equipment (amendments) The amendments prohibit companies from deducting proceeds
from the sale of items produced while preparing items of property, plant and equipment for their intended use.
Companies recognise proceeds from sales and associated costs in proﬁt or loss.
• IAS 37 Provisions, Contingent Liabilities and Contingent Assets (amendments) The amendments set out the costs
that companies take into account when deﬁning the costs of the fulﬁlment of a contract when determining whether a
contract is onerous.
• Annual improvements 2018–2020 cycle bring certain minor amendments to IFRS 1 First-time Adoption of the International
Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture and Illustrative Examples accompanying
IFRS 16 Leases.
The Group is still reviewing the impact of the amendments to the standards and will apply those amendments when they
become effective.
Interest Rate Benchmark Reform – Phase II (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS
16)
In August 2020, the IASB published the results of phase II of interest rate benchmark reform in the form of amendments to
IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, and thus completed its work in response to interest rate benchmark reform. The
amendments include temporary relief in the reporting of the effects of replacing the interbank offered rate (IBOR) with an
alternative risk-free rate (RFR) on ﬁnancial reporting. The amendments provide companies a practical solution in accounting
for changes in the basis for determining contractual cash ﬂows from ﬁnancial assets and liabilities, where companies must
revise the effective interest rate to reﬂect changes in the market interest rate. The amendments also provide companies
certain relief from the discontinuation of a hedging relationship, including the temporary exemption from the requirement
that an interest rate benchmark deﬁned as a hedged item must meet separately deﬁned requirements. In addition, the
amendments to IFRS 4 provide insurers that still apply IAS 39 the same relief that is introduced by the amendments to
IFRS 9. Amendments to IFRS 7 Financial Instruments: Disclosures requires companies to make disclosures that allow the
users of ﬁnancial statements to understand the effect of interest rate benchmark reform on their ﬁnancial instruments
and risk management strategy. The amendments are effective for annual periods beginning on or after 1 January 2021.
Early application of the amendments is permitted. Companies must apply the amendments retrospectively, where the
restatement of data from the previous period is not required.
The Group is still reviewing the impact of the amendments to the standards and will apply those amendments when they
become effective.
A. BASIS FOR CONSOLIDATION
Subsidiaries
Subsidiaries are companies controlled by Intereuropa, d. d. Control exists when:
• the investor exercises inﬂuence over the company in which it has invested;
• the investor is exposed to a variable return or has the right to a variable return from its participation in the company in
which it has invested; and
• the investor is able to affect the amount of its return through its inﬂuence over that company.
The parent company’s management assesses that indicators of control exist. Voting rights are equivalent to shares of control.
The ﬁnancial statements of subsidiaries are included in the consolidated ﬁnancial statements from the date control is
assumed until the date it ceases. They are prepared taking into account the standard accounting policies of the Group.
Associate
he Group values its investment in an associate according to the equity method.
Transactions eliminated on consolidation
Balances, and revenues and expenses deriving from transactions within the Group are excluded during the preparation of
the consolidated ﬁnancial statements.
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116
B. FOREIGN CURRENCY
All transactions in foreign currencies are translated to euros (i.e. the Group’s functional currency) upon initial recognition
at the daily exchange rate between the functional currency and foreign currency on the transaction date. The reference
exchange rate of the European Central Bank (ECB) is applied.
On the statement of ﬁnancial position date:
• monetary items expressed in foreign currencies are translated at the ﬁnal exchange rate for the year;
• non-monetary items denominated in a foreign currency and measured at cost are translated at the exchange rate on the
transaction date; and
• non-monetary items denominated in a foreign currency and measured at fair value are translated at the exchange rates
on the day fair value was determined.
The Group recognises exchange rate differences arising in the settlement of monetary items or in the translation of
monetary items at exchange rates other than those at which they were translated upon initial recognition during the period
in question or at which they were presented in previous ﬁnancial statements in proﬁt or loss (as revenues or expenses) in
the period in which they arise.
Financial statements of companies abroad
When translating the ﬁnancial statements of subsidiaries based abroad with a functional currency that differs from the
reporting currency (euros) for their inclusion in the consolidated ﬁnancial statements, the Group translates assets and liabilities
into the reporting currency of the consolidated ﬁnancial statements at the exchange rate applicable on the reporting date,
while it translates revenues and expenses disclosed in the income statement and items disclosed in other comprehensive
income at the average exchange rate for the period in question, which the Group assesses is an adequate approximation
of the exchange rate on the transaction date. Equity items are translated at the exchange rate on the ﬁnal day of the period
in which a change in equity arose. Any resulting exchange rate differences are recognised in other comprehensive income
(foreign currency translation differences) until the disposal of a subsidiary, at which time exchange rate differences are
transferred to the income statement.
C. FINANCIAL ASSETS
The Group initially recognises ﬁnancial assets at fair value, except investments in a subsidiary, which is not included in
consolidation, and in an associate, which it recognises at cost, and trade receivables, which it recognises at the transaction
price.
The Group recognises ordinary purchases and sales of ﬁnancial assets on the transaction date, i.e. the date on which it
undertakes to purchase or sell an asset. Any gain or loss resulting from the disposal of ﬁnancial assets is also recognised on
that date.
Cash and cash equivalents comprise sight deposits and cash in hand. Cash equivalents are short-term, readily redeemable
investments that can be immediately converted into a speciﬁc amount of cash, where the risk of a change in value is
negligible. The Group deﬁnes short-term call deposits as such. The Group’s statement of cash ﬂows presents changes in
inﬂows and outﬂows of cash and cash equivalents during the accounting period, using the indirect method, and explains
changes in the balance thereof. The statement of cash ﬂows was prepared using data from the consolidated income
statement for 2020, items from the consolidated statements of ﬁnancial position as at 31 December 2020 and 31 December
2019, and additional data.
The Group values investments in shares and participating interests in a subsidiary, which is excluded from consolidation,
and in an associate at cost. Payments received in connection with the accompanying participating interest reduce the
carrying amount of the investment. In the event of changes in the associate’s other comprehensive income, the Group
adjusts the carrying amount of the investment by its corresponding share of those changes. Dividend income and income
from other shares in proﬁt in connection with the above-mentioned companies are recognised in the income statement
on the day the shareholder’s or owner’s right to payment was exercised.
The Group classiﬁes other ﬁnancial assets to the categories presented in the table below based on the business model
used to manage ﬁnancial assets, and on the contractual cash ﬂow characteristics of ﬁnancial assets.
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CLASSIFICATION OF FINANCIAL ASSETS BASED ON THE GROUP’S BUSINESS MODEL USED TO MANAGE FINANCIAL ASSETS AND ON THE
CONTRACTUAL CASH FLOW CHARACTERISTICS OF FINANCIAL ASSETS
Skupina finančnih sredstev Finančno sredstvo
Group of ﬁnancial assets Financial asset
Financial assets measured at amortised cost
Trade receivables, including receivables from leasing and other operating
receivables, contract assets,* loans and deposits.
Financial assets measured at fair value through other
comprehensive income
Equity instruments not held for trading, for which the Group makes an
irrevocable decision at initial recognition to measure those instruments at
fair value through other comprehensive income.
Financial assets measured at fair value through proﬁt
or loss
Equity instruments for which the Group does not make a decision at initial
recognition to measure those instruments at fair value through other
comprehensive income.
* Contract assets represent the Group’s right to consideration for the exchange of goods or services that it has transferred to its customers (current
accrued income). They also comprise receivables from uncharged customs and other duties that arise in customs clearance procedures that are
charged to customers and treated as suspense items.
Signiﬁcant characteristics of the ﬁnancial assets stated in the above table.
1. Financial assets measured at amortised cost
The Group measures ﬁnancial assets upon initial recognition at amortised cost if they meet both of the following conditions:
• the ﬁnancial asset is held within the framework of a business model whose objective is achieved by collecting
contractual cash ﬂows; and
• the contractual terms of the ﬁnancial asset give rise to cash ﬂows, on certain dates, that are exclusively payments of
principal and interest on the outstanding amount of principal.
The Group calculates interest income from the aforementioned assets using the effective interest rate method and
recognises it in proﬁt or loss.
2. Financial assets measured at fair value through other comprehensive income
Interest and exchange rate differences associated with these assets are recognised in the income statement, while other
gains and losses are recognised in other comprehensive income. When an asset is derecognised, gains and losses
recognised in other comprehensive income (revaluation surplus) are transferred to retained earnings.
3. Financial assets measured at fair value through profit or loss
The Group measures ﬁnancial assets that it does not measure at amortised cost and that are not investments in subsidiaries
and an associate at fair value through proﬁt or loss. Gains and losses are recognised in the income statement.
D. FINANCIAL LIABILITIES
A ﬁnancial liability is any liability that is a contractual obligation:
• to deliver to another company cash or some other ﬁnancial asset (e.g. trade payables, liabilities from loans received, etc.);
or
• to exchange ﬁnancial assets or ﬁnancial liabilities with another company under conditions that are potentially unfavourable
to the Company.
The Group recognises ﬁnancial liabilities on the day they arise. Financial liabilities are initially recognised on the transaction
date, i.e. when the Group becomes a contractual party in connection with the instrument in question. The Group
derecognises a ﬁnancial liability when the obligations speciﬁed in the contract have been discharged, have been cancelled
or have expired. Upon initial recognition, it measures ﬁnancial liabilities at fair value, including transactions costs. Following
initial recognition, derivative ﬁnancial liabilities are measured at amortised cost using the effective interest rate method.
Liabilities from contracts with customers
Liabilities from contracts with customers represent an obligation to transfer goods or services to a customer for which
consideration was received from the customer (liabilities for advances received).
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E. EQUITY
Share capital
The parent company’s share capital is deﬁned in nominal terms in its Articles of Association, registered with the court and
paid up by its owners.
Share premium account
The share premium account comprises amounts from the simple reduction of the parent company’s share capital. The
share premium account may be used under the conditions and for the purposes set out by law.
Legal reserves
Legal reserves comprise amounts retained from proﬁts generated in previous years, and are primarily earmarked for the
settlement of potential future losses.
Reserves under the Articles of Association and other reserves
Reserves under the Articles of Association and other reserves are earmarked for the settlement of potential future losses
and for other purposes.
Treasury shares
Treasury shares are disclosed in proﬁt reserves (as a deduction item). Reserves for treasury shares are created in the amounts
paid for the acquisition of those shares.
Fair value reserves
Fair value reserves comprise the revaluation surplus in connection with land, and actuarial losses in connection with
provisions for post-employment and other non-current employee beneﬁts, and the revaluation surplus in connection with
ﬁnancial assets measured at fair value. All components of the fair value reserve were reduced for the amount of deferred
taxes.
Foreign currency translation differences
Foreign currency translation differences are the result of exchange rate differences that arise when the ﬁnancial statements
of subsidiaries are included in the consolidated ﬁnancial statements.
Liabilities for dividends and other shares in profit
Liabilities for dividends and other shares in proﬁt are recognised on the day the right to payment is exercised by a
shareholder or owner.
F. PROPERTY, PLANT AND EQUIPMENT
The Group initially recognises property, plant and equipment at cost, which includes amounts directly related to the
purchase of an asset, as well as capitalised borrowing costs. Following the initial recognition of property, plant and
equipment, the Group measures buildings and equipment using the cost model, while a revaluation model is used for
land. According to the cost model, property, plant and equipment are disclosed at cost, less accumulated depreciation
and any accumulated impairment loss. According to the applied revaluation model, land is disclosed at fair value on the
revaluation date, less accumulated impairment loss. The Group veriﬁes the need to revalue land annually, and otherwise
revalues land every ﬁve years or more frequently if indications of impairment point to a signiﬁcant deviation in fair value.
An increase in the carrying amount of land as a result of revaluation is recognised directly in equity as a revaluation surplus
in the statement of comprehensive income. A decrease in the carrying amount of land as a result of revaluation reduces
the revaluation surplus for that land. If the decrease in the carrying amount exceeds the accumulated revaluation surplus
for the same asset, the difference in the decrease is transferred to proﬁt or loss as an expense. The revaluation surplus for
land, which constitutes an integral part of equity, is transferred directly to retained earnings when the asset in question is
derecognised.
Accounting for borrowing costs
The Group treats borrowing costs that may be directly attributed to the acquisition, construction or manufacture of an
asset under construction as part of the cost of that asset. Borrowing costs comprise interest expense and exchange rate
differences arising from loans in a foreign currency, if they are treated as a recalculation of interest expense. Other borrowing
costs are recognised in the income statement as an expense in the period in which they arise.
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Subsequent costs
The cost of replacing some part of an item of property, plant and equipment is recognised in the carrying amount of the
asset in question if it is probable that the future economic beneﬁts embodied within the part will ﬂow to the Group, and
its cost can be measured reliably. All other costs are recognised in proﬁt or loss as expenses as they arise.
Depreciation
Deprecation is charged on a straight-line basis over the useful life of each individual item of property, plant and equipment.
That method most precisely reﬂects the expected pattern of use of an asset. The estimated useful lives for the current and
comparative periods are as follows:
Current period Comparative period
Buildings 30–68 years 40–68 years
Computer equipment 2–4 years 2–4 years
Other plant and equipment 2–10 years 2–10 years
Once a year, the Group reviews the appropriateness of the depreciation method and useful lives, and adjusts them as
necessary.
G. INTANGIBLE ASSETS
Intangible assets comprise investments in industrial property rights (concessions, patents, licences, brands and similar
rights), the goodwill associated with an acquired company and other rights, as well as other intangible assets. The period
and method of amortisation of intangible assets with a ﬁnite useful life are reviewed, at a minimum, at the end of each
ﬁnancial year. Following initial recognition, the Group measures intangible assets using the cost model, i.e. at cost less
accumulated amortisation and any accumulated impairment loss.
Subsequent costs
Subsequent costs in connection with intangible assets are capitalised if they increase the future economic beneﬁts
embodied in the asset to which the costs relate. All other costs are recognised in proﬁt or loss as expenses as they arise.
Amortisation
Amortisation is charged on the cost of an asset, and is recognised in proﬁt or loss on a straight-line basis over the useful lives
of intangible assets, from the date that they are available for use. That method is the most precise reﬂection of the expected
pattern of use of the future economic beneﬁts embodied in an asset.
The estimated useful lives for the current and comparative years are 3, 5, 10, 15 and 23 years. The Group veriﬁes amortisation
methods, useful lives and residual values at the end of each ﬁnancial year and adjusts them as required.
Goodwill
The Group recognises any surplus of the cost of a business combination over the fair value of the acquired identiﬁable
assets and liabilities as goodwill. Goodwill is not amortised. Instead, the Group tests goodwill annually for impairment.
Goodwill is disclosed at cost, less any accumulated impairment loss.
Acquisition of non-controlling interests
Acquisitions of non-controlling interests are accounted for as transactions with the owners of equity. Thus, no goodwill is
recognised as the result of such transactions. Any difference is recognised directly in equity.
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120
H. INVESTMENT PROPERTY
Investment property comprises real estate purchased to generate rental income, to increase the value of non-current
assets, or both. An assessment is required to determine whether real estate is deemed investment property. When
assessing whether real estate is deemed investment property, the Group deﬁnes criteria for the classiﬁcation of real estate
or parts of real estate to investment property, such that all real estate that is the subject of a long-term lease (more than one
year) or a lease for an indeﬁnite period is reclassiﬁed to investment property if the leased portion of real estate represents
more than 10% and less than 90% of the total area of the real estate. If the leased part of real estate represents 90% or
more of the total area, the entire real estate is reclassiﬁed to investment property; if that part represents 10% or less of the
total area of the real estate, that real estate remains classiﬁed under ﬁxed assets as real estate used by the owner, except the
portion of land that belongs to a building, which is classiﬁed to investment property and treated as such. Real estate that is
the subject of a short-term lease (less than one year in duration) or is not the subject of a lease (not used) remains classiﬁed
under ﬁxed assets as property used by the owner.
Following initial recognition, the Group discloses investment property using the historical cost model, i.e. at historical cost
less accumulated depreciation and any accumulated impairment loss. Revalued investment property (land) is transferred
from property, plant and equipment at the carrying amount on the transfer date, while the associated revaluation surplus
remains in equity and is transferred to retained earnings upon disposal. The same useful lives used for real estate classiﬁed
as property, plant and equipment are applied to investment property.
I. LEASES
Group as lessee of assets
The Group has different property (land and business premises) and equipment under lease. When entering into a contract,
it assesses whether it is a lease contract or whether it contains a lease. A contract is a lease contract or contains a lease if it
conveys the right to control of an identiﬁed asset for a period of time in exchange for consideration. The Group deﬁnes
the lease term based on the period in which a lease cannot be terminated, taking into account the period covered by an
extension option and the period covered by a termination option.
LEASE TERM FOR THE CURRENT AND COMPARATIVE PERIODS:
Current period Comparative period
Right-of-use assets – land 5–6 years 5–6 years
Right-of-use assets – buildings 1–10 years 1–10 years
Right-of-use assets – equipment 1–5 years 1–5 years
The Group uses a standard approach for recognising and measuring all leases, except short-term leases (leases of up
to one year) and low-value leases (with a value of less than EUR 5 thousand). The Group recognises lease payments in
connection with short-term and low-value leases as costs in the period to which a lease relates using the straight-line
method over the entire lease term. For all other leases, the Group recognises a right-of-use asset and a lease liability for
leased assets.
The Group recognises a right-of-use asset at the inception of a lease. The cost of right-of-use assets in connection with
leases comprises the amount of the initially measured lease liability, initial direct costs and lease payments that were made
at or prior to the commencement of a lease, less lease incentives.
Right-of-use assets in connection with leases are measured at historical cost less value adjustments and impairment losses,
with an adjustment to cost at each remeasurement of lease liabilities. The Group impairs assets under lease in the same
manner as property, plant and equipment.
Liabilities for leased assets are recognised at the present value of remaining lease payments over the entire lease term.
Lease payments are discounted at the interest rate implicit in a lease if that rate can be determined, otherwise the Group
applies the incremental borrowing rate that it would have to pay if it acquired an asset with a similar value as a right-of-use
asset for a similar period, based on a similar guarantee in a similar economic environment. Following the commencement
of a lease, the amount of lease liabilities is increased for lease-related interest and reduced for all lease payments, while the
value of a lease is adjusted upon reassessment or a change in a lease.
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At the commencement of a lease, lease liabilities are equal to the value of the associated right-of-use asset and are
reduced for payments, while the value of the right-of-use asset is reduced by depreciation charged over the lease term.
Depreciation rates are set taking into account the lease term. Interest incurred is charged to ﬁnance costs in the period in
question. The Group applies the exemption for short-term leases, i.e. leases where the lease term is 12 months or less. It
also applies the exemption for leases of low-value assets. The Group recognises lease payments on a straight-line basis
over the lease term for short-term and low-value leases.
Due to the situation caused by the COVID-19 pandemic, the Group applies the practical solution not to assess whether a
change to lease payments that meet the conditions given below is a change in a lease. Those conditions are:
• the result of a change in lease payments is a change in consideration for a lease that is almost equal to or less than the
consideration for a lease immediately prior to that change;
• the reduction in lease payments only affects payments that would originally fall due on or before 30 June 2021 (i.e. an
adjustment to lease payments would meet this condition if it caused a reduction in lease payments on or before 30 June
2021 and an increase in lease payments after 30 June 2021); and
• there is no material change in other lease conditions.
In this case, the Group does not treat a change in lease payments as a change to an existing lease, but instead recognises
it in the income statement.
In sale and leaseback transactions in which it acts as seller, i.e. lessee, the Group measures a right-of-use asset proportionately
with that part of the previous carrying amount of the right-of-use asset that it has kept. Accordingly, it only recognises the
amount of gains or losses that relate to the rights that were transferred by the buyer, i.e. lessor.
Group as lessor of assets
As lessor, the Group recognises lease payments from operating leases as revenues on a straight-line basis over the lease
term. The Group discloses assets that it leases in the statement of ﬁnancial position with regard to the nature of an asset that
is the subject of a lease.
J. INVENTORIES
Inventories of material are valued at cost, which comprises the purchase price, import duties and the direct costs of
procurement. The purchase price is reduced by any discounts received. The weighted average price method is applied
in the use of materials.
K. IMPAIRMENT OF ASSETS
1. Impairment of financial assets
Impairment of operating receivables
The Group impairs operating receivables for expected credit losses over the life of those assets. Impairment losses on
trade receivables and other operating receivables (including the reversal of impairment losses) are disclosed in the income
statement in the item ‘loss due to the impairment of receivables’.
The Group impairs trade receivables (including receivables from leases) that are not subject to legal actions, enforcement or
bankruptcy proceedings, registered in compulsory composition proceedings prior to publication of conﬁrmation thereof
or in recovery proceedings via specialised institutions, or are not deemed doubtful based on other objective reasons, by
creating a depreciation and impairment using impairment percentages with regard to the age of the receivables.
When measuring expected credit losses associated with such assets, the Group applies a simpliﬁed approach using a
‘provision matrix’ that is based on past experiences regarding written-off receivables and estimates for the future.
The Group impairs receivables that are subject to legal actions, enforcement or bankruptcy proceedings, registered
in compulsory composition proceedings prior to publication of conﬁrmation thereof or in recovery proceedings via
specialised institutions, or that are deemed doubtful based on other objective reasons, in 100% of their value, except
where the law permits a reduction in liabilities for calculated and unpaid value added tax. Impairments are reduced for
that amount.
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The Group impairs receivables for interest on loans granted and deposits placed when it impairs loans and deposits. It
does not impair other operating receivables until they are more than 30 days past due, depending on the composition of
and past experience with those receivables. After that time, the Group individually assesses the probability of future cash
ﬂows from such receivables and impairs them accordingly.
Impairment of loans granted and deposits
The Group impairs loans granted and deposits based on the management’s assessment of their irrecoverability. In
accordance with IFRS 9, the Group transitioned from the incurred loss model to the expected loss model, according to
which the Group recognises both incurred losses and losses that it expects to incur in the future.
When assessing the impairment of loans granted, the Group assesses evidence of impairment for each loan separately. If
it assesses that the carrying amount of a loan exceeds its fair value (i.e. its realisable value), the Group impairs that loan. The
assessment of impairment is based on expected credit losses in connection with the probability of loan default over the
next 12 months, unless credit risk has risen signiﬁcantly since initial recognition. In such cases, the assessment of impairment
is based on the probability of default over the entire life of the ﬁnancial asset in question. Expected credit losses comprise
the difference between contractual cash ﬂows that have fallen due according to the relevant contract and all cash ﬂows
that the Group expects to receive. Expected cash ﬂows will also include cash ﬂows from the sale of a collateralised asset.
The Group assesses impairments for expected credit losses in two steps. For credit exposures for which there has been no
signiﬁcant increase in credit risk since initial recognition, impairments for expected credit losses are recognised for credit
losses resulting from potential defaults over the next 12 months. For those credit exposures for which there has been a
signiﬁcant increase in credit risk since initial recognition, the Group recognises an adjustment for losses that it expects over
the remaining life of an exposure, regardless of the default period. The Group deems obligations in connection with a
ﬁnancial asset not to be fulﬁlled when contractual payments are 90 days past due. In certain cases, the Group may deem
credit risk to have increased, even when it is probable, based on the relevant information, that it will not receive unpaid
contractual amounts in full.
The Group recognises the write-off of a ﬁnancial asset when it justiﬁably expects that it will not collect contractual cash
ﬂows. Impairment losses on these assets are disclosed in the consolidated income statement in the item ‘other ﬁnance
costs’.
2. Impairment of non-financial assets
The Group reviews the carrying amount of property, plant and equipment, investment property and intangible assets at
each reporting date to determine whether there are any indications of impairment. If such indications exist, the recoverable
amount of an asset is estimated.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use or its fair value less selling
costs. In assessing value in use, estimated future cash ﬂows are discounted to their present value using a pre-tax discount
rate that reﬂects current market assessments of the time value of money and the risks speciﬁc to an asset. For impairment
testing, assets that cannot be tested individually are grouped into the smallest possible groups of assets that generate cash
ﬂows from continued use and that are largely independent of cash generated by other assets or groups of assets (cash-
generating unit).
The Group recognises the impairment of an asset or a cash-generating unit when its carrying amount exceeds its
recoverable amount. That impairment is disclosed as an expense in the income statement.
The Group reverses an impairment loss to the extent that the asset’s increased carrying amount does not exceed the
carrying amount that would have been determined, net of depreciation or amortisation, had no impairment loss been
recognised in previous years.
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L. NON-CURRENT ASSETS HELD FOR SALE
Non-current assets or a disposal group comprising assets (applicable to investment property, intangible assets and non-
current ﬁnancial assets within non-current assets, and only applicable to land and buildings within property, plant and
equipment on grounds of materiality) whose carrying amount is reasonably expected to be settled primarily through sale
and not through further use are classiﬁed as assets held for sale, with that sale envisaged within the next twelve months, at
the latest.
A sale is highly likely when the entire plan and programme to ﬁnd a buyer are activated. An asset must also be actively
marketed and efforts made to achieve a price that corresponds to its current fair value. An asset is remeasured immediately
before its classiﬁcation to assets held for sale. Accordingly, a non-current asset (or disposal group) is recognised at the lower
of its carrying amount or fair value, less costs to sell.
The period for completion of a sale may be extended to more than one year due to special events and circumstances that
are beyond the control of the Group and if there is sufﬁcient evidence that the Group is consistently pursuing its plans to
dispose of the asset.
If an asset held for sale no longer meets the criteria for classiﬁcation to the aforementioned category, it must be reclassiﬁed
to another appropriate asset category, i.e. the category to which it was classiﬁed before being classiﬁed as an asset held
for sale.
M. EMPLOYEE BENEFITS
Short-term employee benefits
Short-term employee beneﬁt obligations are measured on an undiscounted basis, and are disclosed as expenses as the
service of the employee is provided in respect of the speciﬁc short-term beneﬁt.
N. PROVISIONS
Constructive obligation that can be estimated reliably, and it is probable that an outﬂow of economic beneﬁts will be
required to settle the obligation. Amounts recognised as provisions represent the best estimate of expenditure required
for settlement as at the balance-sheet date. In assessing the best estimate of provisions, risks and uncertainties associated
with numerous events and circumstances are also considered. Where the effect of the time value of money is material, the
amount of provisions represents the present value of expenditure expected to be required to settle an obligation.
Provisions are recognised by accruing the corresponding costs or expenses, and are reduced directly over time by the
costs and/or expenses that they were created to cover, except actuarial gains and losses from termination beneﬁts upon
retirement due to changes in actuarial assumptions and experiential restatements that are recognised in the revaluation
surplus and transferred to retained earnings in the proportionate amount when they are used. That amount is calculated
using the ratio between provisions used during the year and the balance of provisions before use.
Provisions are derecognised when the contingencies for which they were created no longer apply, or when they are no
longer required. Revenues are recognised when provisions created by accruing the corresponding costs or expenses are
derecognised. Provisions are restated at the end of the accounting period so that their value is equal to the present value
of the expenditure expected to be required to settle the obligation in question.
Provisions for termination benefits and employee anniversary bonuses
Group companies that are obliged to pay termination beneﬁts upon retirement and employee anniversary bonuses to
employees in accordance with the applicable legislation, the collective agreement and internal rules create non-current
provisions for these purposes. No other pension obligations exist.
The aforementioned provisions are created in the amount of the estimated future payments for termination beneﬁts and
employee anniversary bonuses, discounted as at the date of the actuarial calculation.
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124
Interest expense and any increase during the current year are recognised in the income statement as labour costs, while
interest is disclosed as a ﬁnance cost. Actuarial gains and losses from employee anniversary bonuses are recognised in the
income statement as labour costs, while actuarial gains and losses from termination beneﬁts upon retirement are recognised
in other comprehensive income in the revaluation surplus and transferred to retained earnings in the proportionate amount
when they are used. That amount is calculated using the ratio between provisions used during the year and the balance of
provisions before use. Provisions are used in an amount equal to the actual costs incurred for accrued termination beneﬁts
upon retirement and employee anniversary bonuses.
O. REVENUES FROM SERVICES RENDERED
Contracts with customers are only accounted for when the relevant conditions have been met. When approving contracts
with customers, the consideration that is expected in exchange for goods or services transferred to them is assessed.
Consideration received represents the transaction price. The transaction price represents the ﬁxed agreed consideration
in exchange for promised goods and/or the provision of services to a customer.
Revenues from services rendered are recognised by the Group in the consolidated income statement taking into account
the stage of completion of a transaction at the end of the reporting period or when performance obligations are fulﬁlled.
The stage of completion is assessed on the basis of a review of costs incurred (review of work performed – measurement
of the progress of a transaction).
Revenues from services rendered are measured at the transaction prices of completed services stated in invoices (fulﬁlment
of performance obligations at a given moment) or other documents, or at the prices of incomplete services taking into
account the stage of completion thereof (performance obligations are fulﬁlled over time).
In cases when a particular transaction (performance obligation) is not completed (fulﬁlled) as at the balance-sheet date,
the Group believes that no reliable assessment can be made regarding the outcome of such a transaction, but that the
progress of that transaction can be reasonably measured. Thus, the Group only recognises revenues up to the amount of
direct costs incurred, and for which it can be expected that they will be covered (contribution method).
Amounts collected on behalf of third parties, such as charged value-added tax and other levies (e.g. customs duties) are
excluded from sales revenue.
FULFILMENT OF PERFORMANCE OBLIGATIONS
Business line
Nature of and time required to fulfil performance obligations
to customers
Payment terms
LAND TRANSPORT
LOGISTICS SERVICES
INTERCONTINENTAL TRANSPORT
OTHER SERVICES
A customer sends an order for the execution of forwarding
transactions. The order must include all essential data for the
correct and timely execution thereof. A transaction is deemed
completed when all activities under an order have been
implemented. An order may contain different services. A
transaction is deemed completed:
- for services in connection with organising the transport of
goods: when transport is completed (i.e. the goods are
received or delivered);
- for customs clearance transactions: when goods are released
to the declaring party
- for the warehousing of goods: when goods are placed in
or removed from a warehouse, or other warehouse work is
performed (e.g. palletting and labelling); and
- for other transactions: when the agreed service is rendered.
An invoice is issued to the customer after a service has been
rendered.
In general, a customer must
pay for our services and
associated costs before
a service is rendered
(advance). Taking into
account a customer’s credit
rating, past experience with
a customer and commercial
agreements, an invoice for
services is payable within
30 days following the
rendering thereof.
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125
State aid
We distinguish between state aid in connection with assets and state aid in connection with revenues.
a. State aid in connection with assets, including non-monetary support at fair value, is disclosed in the statement of ﬁnancial
position as deferred income and is consistently transferred to the income statement as revenues over the useful life of
the asset in question. The Group discloses deferred income that will cover projected expenses over a period of more
than one year under non-current deferred income.
b. State aid in connection with revenues comprises state aid in connection with the reimbursement of wage compensation
for employees, the exemption of the payment of social security contributions, etc. The Group recognises state aid in
connection with revenues in other operating revenues and not as a reduction in associated costs. It is recognised as
revenues in the periods in which the costs that such state aid is earmarked to cover are incurred. State aid is recognised
when there is reasonable assurance that the Group will fulﬁl the conditions to receive such aid and that it will, in fact,
receive it. If there is uncertainty in connection with the eligibility to receive state aid (i.e. the possibility exists that the aid
must be returned in the event of failure to fulﬁl certain conditions), the amount of state aid received is disclosed as
deferred income until the fulﬁlment/non-fulﬁlment of conditions.
P. COSTS – EXPENSES
The Group recognises costs as expenses in the period in which they arise.
Q. FINANCE INCOME AND FINANCE COSTS
Finance income primarily comprises interest income from investments, income from dividends and other shares in proﬁt,
income from the disposal of ﬁnancial assets measured at fair value through proﬁt or loss, positive exchange rate differences
and income from the reversal of the impairment of ﬁnancial assets. Interest income is recognised as it accrues, using
the effective interest method. Dividend income and income from other shares in proﬁt are recognised in the income
statement on the day a shareholder’s or owner’s right to payment was exercised.
Finance costs primarily comprise interest expense and other borrowing costs (unless capitalised), interest on leases,
negative exchange rate differences and impairment losses on ﬁnancial assets. Borrowing costs are recognised in the
income statement in the period in which they arise using the effective interest method.
R. CORPORATE INCOME TAX
Corporate income tax comprises current taxes and deferred taxes. Corporate income tax is disclosed in the consolidated
income statement, except to the extent that it relates to items disclosed directly in equity, in which case it is disclosed in
other comprehensive income.
Current tax is assessed in accordance with the applicable tax legislation as at the reporting date. The ﬁnancial year is the
same as the calendar year, which in turn is the same as the ﬁscal year.
Deferred tax is disclosed taking into account temporary differences between the carrying amounts of assets and liabilities
for ﬁnancial reporting purposes and the amounts used for tax reporting purposes.
A deferred tax liability is disclosed in the amount that is expected to be paid when the temporary differences are reversed,
based on the laws in force at the end of the reporting period.
A deferred tax asset is recognised to the extent that it is probable that future taxable proﬁts will be available against which
the deferred tax asset can be utilised.
INTEREUROPA / FINANCIAL REPORT / 2020
126
S. NET EARNINGS PER SHARE
The Group discloses basic earnings per share and diluted earnings per share for its ordinary shares. Basic earnings per
share are calculated by dividing the proﬁt or loss pertaining to ordinary shareholders during the ﬁnancial year with the
weighted average number of ordinary shares (excluding treasury shares).
Diluted earnings per share are calculated by adjusting the proﬁt or loss pertaining to ordinary shareholders and the
weighted average number of ordinary shares during the ﬁnancial year for the effect of all dilutive potential ordinary shares.
The Group does not hold dilutive potential shares. Basic earnings per share and diluted earnings per share are thus equal.
4.2.2.1 Determination of fair value
Taking into account the Group’s accounting policies, the determination of the fair value of both ﬁnancial and non-ﬁnancial
assets and liabilities is required in a number of cases. The Group determined the fair values of individual groups of assets for
measurement and/or reporting purposes based on the methods described below. Where necessary, further clariﬁcations
regarding assumptions used to determine fair values are disclosed in the notes speciﬁc to that asset or liability.
Land
Following recognition, the Group measures land at a revalued amount equal to the fair value on the revaluation date
(i.e. the price that would be received when selling an asset or paid when transferring a liability in an orderly transaction,
on the principal (or most advantageous) market, between market participants at the measurement date under current
market terms, regardless of whether the price can be directly observed or estimated using another valuation technique).
Depending on the circumstances or situation, the fair value of land is measured using one or more valuation techniques.
They are the market approach, cost approach and income approach. The Group revalues land every ﬁve years or more
frequently if indications of impairment point to a signiﬁcant deviation in fair value. Based on an assessment of the effect
of a change in indicators of impairment, the amount by which the fair value of land deviates from its carrying amount is
assessed. An appraisal of land is performed for ﬁnancial reporting purposes in the event of a signiﬁcant deviation.
Investments in equities
The fair value of equities valued at fair value is determined taking into account the bid price at the end of the reporting
period.
The Group assessed that the carrying amount of current receivables and liabilities was a sufﬁciently precise approximation
of their fair value.
4.2.2.2 Financial risk management
The Group is exposed to the following risks in the use of ﬁnancial instruments:
• credit risk,
• liquidity risk,
• market risk,
• currency risk, and
• business risk.
This point discusses the Group’s exposure to the individual risks stated above, and its objectives, policies and procedures
for measuring and managing risks, as well as its management of capital. Other quantitative disclosures are included in
Note 27.
The management has adopted risk management guidelines as part of risk management rules. The Group has a Risk
Management Committee that is responsible for the development and supervision of risk management policies. Financial
risks are a part of the Group’s regular reporting on risks that the aforementioned committee regularly reports to the Audit
Committee.
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127
Credit risk
Credit risk is the risk of ﬁnancial loss to the Group if a customer or counterparty to a ﬁnancial instrument fails to meet its
contractual obligations. Credit risk arises primarily in connection with the Group’s trade receivables.
The Group’s exposure to credit risk depends primarily on the characteristics of each customer. However, management also
takes into account the demographic structure of customers and the solvency risk associated with the sector and country in
which a customer operates, as these factors may affect credit risk, particularly in adverse economic conditions.
The relevant policies require an analysis of the creditworthiness of a major new customer, before the Group offers its
standard payment and delivery terms. The Group creates impairments that represent its estimated losses from operating
and other receivables and investments. The main elements of such a depreciation and impairment are the speciﬁc part of
the loss relating to individual signiﬁcant risks and the common part of the loss formed for groups of similar assets due to
previously incurred but as yet undeﬁned losses.
Liquidity risk
Liquidity risk is the risk that the Group will be unable to settle its ﬁnancial liabilities using cash or other ﬁnancial assets.
The Group ensures liquidity by always having sufﬁcient liquid assets to settle liabilities at maturity, under both normal and
the most demanding situations, without incurring unacceptable losses or risking damage to its reputation.
The Group primarily provides guarantees for potential customs liabilities that might arise from transit procedures, the
veriﬁcation of origin, and various analyses and/or the control of goods that are required for the performance of operational
business activities.
Market risk
Market risk is the risk that changes in market prices, such as exchange rates, interest rates and equity instruments, would
affect the revenues of the Group or the value of ﬁnancial instruments. The objectives of market risk management are to
manage and control exposure to market risks within reasonable limits, while optimising returns.
Currency risk
Group companies operating outside the euro area are particularly exposed to currency risk, which primarily involves the
risk of changes in the exchange rates of the Serbian dinar, Croatian kuna and Ukrainian hryvnia vis-à-vis the euro. With
regard to cash ﬂows from operating activities, the aforementioned companies use a natural hedge against the risk of
changes in the exchange rate of their national currency vis-à-vis the euro, meaning that they match inﬂows with outﬂows in
individual currencies in terms of timing and amount, and do not use foreign exchange futures. Subsidiaries that have raised
loans in euros have open foreign exchange positions in their statements of ﬁnancial position. It is highly likely that a change
in the exchange rate of the national currency vis-à-vis the euro would have a signiﬁcant impact on the operations of those
companies. The companies in Ukraine are most exposed to currency risk.
On the contrary, exposure to currency risk is low for Group companies that operate in countries of the euro area, as cash
ﬂows at those companies are almost exclusively in euros. The effect on their operations is thus minor.
Business risk
Business risk is the risk of incurring a direct or indirect loss due to numerous reasons associated with processes in the Group,
staff, technology and the infrastructure, and as the result of external factors not related to credit, market and liquidity risks.
These include risks arising from legal and regulatory requirements, and generally accepted corporate standards. Business
risks derive from the overall operations of the Group. The objective is to manage business risks with the aim of establishing
a balance between the avoidance of ﬁnancial losses and damage to the Group’s reputation and overall cost efﬁciency,
and avoiding such control procedures that would hinder or limit self-initiative and creativity. Primary responsibility for
developing and introducing controls for managing business risks is borne by the head of each organisational unit.
A programme of regular internal audits is implemented by the Internal Audit Department, which discusses the results of
internal audits with the heads of audited business units or subsidiaries, while a summary is submitted to the Company’s
Management Board and the Audit Committee.
INTEREUROPA / FINANCIAL REPORT / 2020
128
4.2.3. SIGNIFICANT ACCOUNTING POLICIES OF THE COMPANY
The Company consistently applies the same accounting policies from period to period. Those policies are presented in
the enclosed ﬁnancial statements. The Company only amends accounting policies if:
• the change is mandatory under a standard or interpretation, or
• as the result of a change, the ﬁnancial statements present more reliable and relevant information regarding the effects of
transactions, other business events and balances on the ﬁnancial position, results expressed in monetary terms and the
ﬁnancial ﬂows of the Group or Company.
Comparative information is harmonised with the presentation of information for the ﬁnancial year in question. Amendments
to policies are disclosed.
The accounting policies that the Company used in the preparation of its annual ﬁnancial statements are the same as those
applied in the preparation of the ﬁnancial statements for the previous ﬁnancial year. The exception is newly adopted or
amended standards and interpretations that the Group adopted for annual periods beginning on or after 1 January 2020,
as described below.
New standards and interpretations approved by the EU
Conceptual Framework for the IFRS
On 29 March 2018, the International Accounting Standards Board (IASB) published its revised Conceptual Framework for
Financial Reporting. The Conceptual Framework deﬁnes a comprehensive set of concepts used in ﬁnancial reporting, the
deﬁnition of standards, and instructions for the preparers of consistent accounting policies and for the easier understanding
and interpretation of standards. The IASB also issued ‘Amendments to References of the Conceptual Framework in the
IFRS’, which presents amendments to those standards and serves for the purpose of updating references to the revised
Conceptual Framework. The IASB’s aim is to provide support in the transition to the revised Conceptual Framework to
companies that adopt their accounting policies based on the instructions set out in the Conceptual Framework whenever
a speciﬁc transaction is not covered by any of the IFRS. For preparers who adopt their accounting standards based on the
Conceptual Framework, the revised version of that framework applies for annual periods beginning on or after 1 January
2020.
The application of amendments has no material impact on the Company’s ﬁnancial statements.
IFRS 3 Business Combinations (amendments)
The IASB published Deﬁnition of a Business (Amendments to IFRS 3) with the aim of eliminating uncertainty when
determining whether a transaction involves the acquisition of a business or group of assets. The amendments apply to
business combinations for which the acquisition date is in the ﬁrst annual reporting period beginning on or after 1 January
2020 and to asset acquisitions that occur on or after the beginning of that period. Early application of the amendments is
permitted.
The amendment to the standard has no impact on the Company’s ﬁnancial statements.
IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting
Estimates and Errors: Definition of Material (amendments)
The amendments are effective for annual periods beginning on or after 1 January 2020. Early application of the
amendments is permitted. The amendments clarify the deﬁnition of the term ‘material’ and how it is used. According to the
new deﬁnition, “Information is material if omitting, misstating or obscuring it could reasonably be expected to inﬂuence
decisions that the primary users of general-purpose ﬁnancial statements make on the basis of those ﬁnancial statements,
which provide ﬁnancial information about a speciﬁc reporting entity.” The IASB also explained more clearly interpretations
that relate to that deﬁnition. The amendments also ensure the harmonisation of the deﬁnition of the term ‘material’ with all
other IFRS. The amendment to the standards has no impact on the Company’s ﬁnancial statements.
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129
Interest Rate Benchmark Reform – IFRS 9, IAS 39 and IFRS 7 (amendments)
In September 2019, the International Accounting Standards Board (IASB) published amendments to IFRS 9, IAS 39 and IFRS
7 during the ﬁnal phase of the response to the effects of interbank offered rate (IBOR) reform on ﬁnancial reporting by
companies. The amendments address matters that could affect ﬁnancial reporting in the period prior to the replacement
of an existing interest rate benchmark with an alternative interest rate, and the implications for speciﬁc hedge accounting
requirements set out in IFRS 9 Financial Instruments and IAS 39 Financial Instruments: Recognition and Measurement,
where a company must take into account the results of a forward-looking analysis of operations. Companies may apply a
temporary exemption for recognising all hedges on which the interbank offered rate reform could have a direct effect,
and may continue with the recognition of hedge accounting during the period of uncertainty prior to the replacement
of an existing interest rate benchmark with an alternative, nearly risk-free interest rate. Amendments to IFRS 7 Financial
Instruments: Disclosures relating to additional disclosures around uncertainty arising from the interest rate benchmark
reform. The amendments are effective for annual periods beginning on or after 1 January 2020 and must be applied
retrospectively. During the second phase of the project (draft), the IASB will address matters that could affect ﬁnancial
reporting in the period in which a company replaces an existing interest rate benchmark with a risk-free interest rate.
The amendments to the standards had no impact on the Company’s ﬁnancial statements.
IFRS 16 Leases – changes in lease payments as the result of the COVID-19 pandemic
(amendments)
The amendments are effective for annual periods beginning on or after 1 June 2020 and must be applied retrospectively.
The purpose of the amendments is to provide relief to lessees in the application of IFRS 16 as it relates to accounting for
changes in lease payments that are the direct result of the COVID-19 pandemic. The amendments allow lessees to apply
practical solutions, such that changes in lease payments that are the direct result of the pandemic need not be accounted
for in the same manner as other changes covered by IFRS 16, provided that all of the following conditions are met:
• a change in lease payments results in a change in consideration for a lease that is equal to or less than the consideration
deﬁned immediately prior to that change;
• each reduction in lease payments only affects payments that according to the original agreement fall due for payment
on or before 30 June 2021; and
• all other conditions of the lease remain largely unchanged.
The application of new amendments to the standard has no material impact on the Company’s ﬁnancial statements.
New standards and interpretations not yet approved by the EU
Amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates
and Joint Ventures: Sale or Contribution of Assets between an Investor and its Associate or Joint
Venture
The amendments address discrepancies between the requirements of IFRS 10 and IAS 28 in the treatment of sales or
contributions of assets between an investor and its associate or joint venture. The main consequence of the amendments
is that a company must recognise the full amount of gains or losses when a transaction includes a business (regardless of
whether the business is housed in a subsidiary or not). For transactions involving assets that do not constitute a business,
only a partial gain or loss is recognised when assets are housed in a subsidiary. In December 2015, the International
Accounting Standards Board deferred the effective date of the standard indeﬁnitely while it waits for the results of the
research project on the accounting of assets under the equity method.
The Company does not expect the application of the amendments to have a material impact on its ﬁnancial statements.
IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-Current
(amendments)
The amendments are effective for annual periods beginning on or after 1 January 2022. Early application of the
amendments is permitted. In response to the COVID-19 pandemic, the IASB deferred the effective date for one year, i.e.
until 1 January 2023, to give companies sufﬁcient time to implement potential changes in the classiﬁcation of liabilities as
the result of amendments to the standard. The amendments offer companies assistance in deciding whether debt and
other liabilities with an uncertain settlement date should be classiﬁed as current or non-current liabilities in the statement
of ﬁnancial position, and thus ensure greater consistency in compliance with requirements. The amendments affect the
presentation of liabilities in the statement of ﬁnancial position, but do not change existing requirements in connection with
the measurement or timing of the recognition of assets, liabilities, revenues or expenses, or the information that is disclosed
in those items. The amendments also clarify requirements in connection with the classiﬁcation of debt that a company
could settle through the issue of equity instruments.
The Company does not expect the application of the amendments to have a material impact on its ﬁnancial statements.
INTEREUROPA / FINANCIAL REPORT / 2020
130
IFRS 3 Business Combinations IAS 16 Property, Plant and Equipment IAS 37 Provisions, Contingent
Liabilities and Contingent Assets, and annual improvements 2018–2020 cycle (amendments)
The amendments are effective for annual periods beginning on or after 1 January 2022. Early application of the amendments
is permitted. The IASB published the following limited amendments to the IFRS:
• The purpose of amendments to IFRS 3 Business Combination is the updating of the reference in IFRS 3 to the Conceptual
Framework for ﬁnancial reporting, where requirements regarding accounting for business combinations remain
unchanged.
• IAS 16 Property, Plant and Equipment (amendments) The amendments prohibit companies from deducting proceeds
from the sale of items produced while preparing items of property, plant and equipment for their intended use.
Companies recognise proceeds from sales and associated costs in proﬁt or loss.
• IAS 37 Provisions, Contingent Liabilities and Contingent Assets (amendments) The amendments set out the costs that
companies take into account when deﬁning the costs of the fulﬁlment of a contract when determining whether a
contract is onerous.
• Annual improvements 2018–2020 cycle bring certain minor amendments to IFRS 1 First-time Adoption of the International
Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture and Illustrative Examples accompanying
IFRS 16 Leases.
The Company is still reviewing the impact of the amendments to the standards and will apply those amendments when
they become effective.
Interest Rate Benchmark Reform – Phase II (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)
In August 2020, the IASB published the results of phase II of interest rate benchmark reform in the form of amendments to
IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, and thus completed its work in response to interest rate benchmark reform. The
amendments include temporary relief in the reporting of the effects of replacing the interbank offered rate (IBOR) with an
alternative risk-free rate (RFR) on ﬁnancial reporting. The amendments provide companies a practical solution in accounting
for changes in the basis for determining contractual cash ﬂows from ﬁnancial assets and liabilities, where companies must
revise the effective interest rate to reﬂect changes in the market interest rate. The amendments also provide companies
certain relief from the discontinuation of a hedging relationship, including the temporary exemption from the requirement
that an interest rate benchmark deﬁned as a hedged item must meet separately deﬁned requirements. In addition, the
amendments to IFRS 4 provide insurers that still apply IAS 39 the same relief that is introduced by the amendments to
IFRS MSRP 9. Amendments to IFRS 7 Financial Instruments: Disclosures requires companies to make disclosures that allow
the users of ﬁnancial statements to understand the effect of interest rate benchmark reform on their ﬁnancial instruments
and risk management strategy. The amendments are effective for annual periods beginning on or after 1 January 2021.
Early application of the amendments is permitted. Companies must apply the amendments retrospectively, where the
restatement of data from the previous period is not required.
The Company is still reviewing the impact of the amendments to the standards and will apply those amendments when
they become effective.
A. FOREIGN CURRENCY
Transactions in foreign currencies
All transactions in foreign currencies are translated to euros (i.e. the Company’s functional currency) upon initial recognition
at the daily exchange rate between the functional currency and foreign currency on the transaction date. The reference
exchange rate of the European Central Bank (ECB) is applied.
On the statement of ﬁnancial position date:
• monetary items expressed in foreign currencies are translated at the ﬁnal exchange rate for the year;
• non-monetary items denominated in a foreign currency and measured at cost are translated at the exchange rate on the
transaction date; and
• non-monetary items denominated in a foreign currency and measured at fair value are translated at the exchange rates
on the day fair value was determined.
The Company recognises exchange rate differences arising in the settlement of monetary items or in the translation of
monetary items at exchange rates other than those at which they were translated upon initial recognition during the period
in question or at which they were presented in previous ﬁnancial statements in proﬁt or loss (as income or expenses) in the
period in which they arise.
.
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B. FINANCIAL ASSETS
The Company initially recognises ﬁnancial assets at fair value, except investments in subsidiaries and an associate, which it
recognises at cost, and trade receivables, which it recognises at the transaction price.
The Company recognises ordinary purchases and sales of ﬁnancial assets on the transaction date, i.e. the date on which it
undertakes to purchase or sell an asset. Any gain or loss resulting from the disposal of ﬁnancial assets is also recognised on
that date.
Cash and cash equivalents comprise sight deposits and cash in hand. Cash equivalents are short-term, readily redeemable
investments that can be immediately converted into a speciﬁc amount of cash, where the risk of a change in value is
negligible. The Company deﬁnes short-term call deposits as such. The Company’s statement of cash ﬂows presents
changes in inﬂows and outﬂows of cash and cash equivalents during the accounting period, using the indirect method,
and explains changes in the balance thereof. The statement of cash ﬂows was prepared using data from the Company’s
income statement for 2020, items from its statements of ﬁnancial position as at 31 December 2020 and 31 December 2019,
and additional data.
The Company values investments in shares and participating interests in subsidiaries and an associate at cost. Dividend
income and income from other shares in proﬁt are recognised in the income statement on the day a shareholder’s or
owner’s right to payment was exercised. Gains and losses from such assets are recognised in the income statement.
The Company classiﬁes other ﬁnancial assets to the categories presented in the table below based on the business model
used to manage ﬁnancial assets, and on the contractual cash ﬂow characteristics of ﬁnancial assets.
CLASSIFICATION OF FINANCIAL ASSETS BASED ON THE COMPANY’S BUSINESS MODEL USED TO MANAGE FINANCIAL ASSETS AND ON
THE CONTRACTUAL CASH FLOW CHARACTERISTICS OF FINANCIAL ASSETS
Group of financial assets Financial asset
Financial assets measured at amortised cost
Trade receivables, including receivables from leasing and other operating
receivables, contract assets,* loans and deposits.
Financial assets measured at fair value through other
comprehensive income
Equity instruments not held for trading, for which the Group makes an
irrevocable decision at initial recognition to measure those instruments at
fair value through other comprehensive income.
Financial assets measured at fair value through proﬁt
or loss
Equity instruments for which the Company does not make a decision at
initial recognition to measure those instruments at fair value through other
comprehensive income.
* Contract assets represent the Company’s right to consideration for the exchange of goods or services that it has transferred to its customers (current
accrued income). They also comprise receivables from uncharged customs and other duties that arise in customs clearance procedures that are
charged to customers and treated as suspense items.
Signiﬁcant characteristics of the ﬁnancial assets stated in the above table.
1. Financial assets measured at amortised cost
The Company measures ﬁnancial assets upon initial recognition at amortised cost if they meet both of the following
conditions:
• the ﬁnancial asset is held within the framework of a business model whose objective is achieved by collecting contractual
cash ﬂows; and
• the contractual terms of the ﬁnancial asset give rise to cash ﬂows, on certain dates, that are exclusively payments of
principal and interest on the outstanding amount of principal.
The Company calculates interest income from the aforementioned assets using the effective interest rate method and
recognises it in proﬁt or loss.
2. Financial assets measured at fair value through other comprehensive income
Interest and exchange rate differences associated with these assets are recognised in the income statement, while other
gains and losses are recognised in other comprehensive income. When an asset is derecognised, gains and losses
recognised in other comprehensive income (revaluation surplus) are transferred to retained earnings.
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3. Financial assets measured at fair value through profit or loss
The Company measures ﬁnancial assets that it does not measure at amortised cost and that are not investments in subsidiaries
and an associate at fair value through proﬁt or loss. Gains and losses are recognised in the income statement.
C. FINANCIAL LIABILITIES
A ﬁnancial liability is any liability that is a contractual obligation:
• to deliver to another company cash or some other ﬁnancial asset (e.g. trade payables, liabilities from loans received, etc.);
or
• to exchange ﬁnancial assets or ﬁnancial liabilities with another company under conditions that are potentially unfavourable
to the Company.
The Company recognises ﬁnancial liabilities on the day they arise. Financial liabilities are initially recognised on the transaction
date, i.e. when the Company becomes a contractual party in connection with the instrument in question. The Company
derecognises a ﬁnancial liability when the commitments stipulated in the contract have been discharged, have been
cancelled or have expired. Upon initial recognition, it measures ﬁnancial liabilities at fair value, including transactions costs.
Following initial recognition, derivative ﬁnancial liabilities are measured at amortised cost using the effective interest rate
method.
Liabilities from contracts with customers
Liabilities from contracts with customers represent an obligation to transfer goods or services to a customer for which
consideration was received from the customer (liabilities for advances received).
D. EQUITY
Share capital
The Company’s share capital is deﬁned in nominal terms in its Articles of Association, registered with the court and paid up
by its owners.
Share premium account
The Company’s share premium account comprises amounts from the simple reduction of its share capital. The share
premium account may be used under the conditions and for the purposes set out by law.
Legal reserves
Legal reserves comprise amounts retained from proﬁts generated in previous years, and are primarily earmarked for the
settlement of potential future losses.
Treasury shares
Treasury shares are disclosed in proﬁt reserves (as a deduction item). Reserves for treasury shares are created in the amounts
paid for the acquisition of those shares.
Fair value reserves
Fair value reserves comprise the effects of the revaluation surplus in connection with land, and actuarial losses in connection
with provisions for post-employment and other non-current employee beneﬁts. All components of the fair value reserve
were reduced for the amount of deferred taxes.
Liabilities for dividends and other shares in profit
Liabilities for dividends and other shares in proﬁt are recognised on the day the right to payment is exercised by a
shareholder or owner.
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E. PROPERTY, PLANT AND EQUIPMENT
The Company initially recognises property, plant and equipment at cost, which includes amounts directly related to
the purchase of an asset, as well as capitalised borrowing costs. Following the initial recognition of property, plant and
equipment, the Company measures buildings and equipment using the cost model, while a revaluation model is used for
land. According to the cost model, property, plant and equipment are disclosed at cost, less accumulated depreciation
and any accumulated impairment loss. According to the applied revaluation model, land is disclosed at fair value on the
revaluation date, less accumulated impairment loss. The Company revalues land every ﬁve years or more frequently if
indications of impairment point to a signiﬁcant deviation in fair value.
An increase in the carrying amount of land as a result of revaluation is recognised directly in equity as a revaluation surplus
in the statement of comprehensive income. A decrease in the carrying amount of land as a result of revaluation reduces
the revaluation surplus for that land. If the decrease in the carrying amount exceeds the accumulated revaluation surplus
for the same asset, the difference in the decrease is transferred to proﬁt or loss as an expense. The revaluation surplus for
land, which constitutes an integral part of equity, is transferred directly to retained earnings when the asset in question is
derecognised.
Accounting for borrowing costs
The Company treats borrowing costs that may be directly attributed to the acquisition, construction or manufacture of
an asset under construction as part of the cost of that asset Borrowing costs comprise interest expense and exchange
rate differences arising from loans in a foreign currency, if they are treated as a recalculation of interest expense. Other
borrowing costs are recognised in the income statement as an expense in the period in which they arise.
Subsequent costs
The cost of replacing some part of an item of property, plant and equipment is recognised in the carrying amount of the
asset in question if it is probable that the future economic beneﬁts embodied within the part will ﬂow to the Group, and
its cost can be measured reliably. All other costs are recognised in proﬁt or loss as expenses as they arise.
Depreciation
Deprecation is charged on a straight-line basis over the useful life of each individual item of property, plant and equipment.
That method most precisely reﬂects the expected pattern of use of an asset. The estimated useful lives for the current and
comparative periods are as follows:
Current period Comparative period
Buildings 30–68 years 40–68 years
Computer equipment 2–4 years 2–4 years
Other plant and equipment 2–10 years 2–10 years
Once a year, the Company reviews the appropriateness of the depreciation method and useful lives, and adjusts them as
necessary.
F. INTANGIBLE ASSETS
Intangible assets comprise investments in industrial property rights (concessions, patents, licences, brands and similar rights)
and other rights, and other intangible assets. The period and method of amortisation of intangible assets with a ﬁnite useful
life are reviewed, at a minimum, at the end of each ﬁnancial year. Following initial recognition, the Company measures
intangible assets using the cost model, i.e. at cost less accumulated amortisation and any accumulated impairment loss.
Subsequent costs
Subsequent costs in connection with intangible assets are capitalised if they increase the future economic beneﬁts
embodied in the asset to which the costs relate. All other costs are recognised in proﬁt or loss as expenses as they arise.
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Amortisation
Amortisation is charged on the cost of an asset, and is recognised in proﬁt or loss on a straight-line basis over the useful lives
of intangible assets, from the date that they are available for use. That method is the most precise reﬂection of the expected
pattern of use of the future economic beneﬁts embodied in an asset.
The estimated useful lives for the current and comparative years are 3, 5, 10, 15 and 23 years. The Company veriﬁes
amortisation methods, useful lives and residual values at the end of each ﬁnancial year and adjusts them as required.
G. INVESTMENT PROPERTY
Investment property comprises real estate purchased to generate rental income, to increase the value of non-current assets,
or both. An assessment is required to determine whether real estate is deemed investment property. When assessing
whether real estate is deemed investment property, the Company deﬁnes criteria for the classiﬁcation of real estate or
parts of real estate to investment property, such that all real estate that is the subject of a long-term lease (more than one
year) or a lease for an indeﬁnite period is reclassiﬁed to investment property if the leased portion of real estate represents
more than 10% and less than 90% of the total area of the real estate. If the leased part of real estate represents 90% or
more of the total area, the entire real estate is reclassiﬁed to investment property; if that part represents 10% or less of the
total area of the real estate, that real estate remains classiﬁed under ﬁxed assets as real estate used by the owner, except the
portion of land that belongs to a building, which is classiﬁed to investment property and treated as such. Real estate that is
the subject of a short-term lease (less than one year in duration) or is not the subject of a lease (not used) remains classiﬁed
under ﬁxed assets as property used by the owner.
Following initial recognition, the Company discloses investment property using the cost model, i.e. at cost less accumulated
depreciation and any accumulated impairment loss. Revalued investment property (land) is transferred from property,
plant and equipment at the carrying amount on the transfer date, while the associated revaluation surplus remains in equity
and is transferred to retained earnings upon disposal. The same useful lives used for real estate classiﬁed as property, plant
and equipment are applied to investment property.
H. LEASES
Company as lessee of assets
The Company has different property (land and business premises) and equipment under lease. When entering into a
contract, it assesses whether it is a lease contract or whether it contains a lease. A contract is a lease contract or contains a
lease if it conveys the right to control of an identiﬁed asset for a period of time in exchange for consideration. The Company
deﬁnes the lease term based on the period in which a lease cannot be terminated, taking into account the period covered
by an extension option and the period covered by a termination option.
LEASE TERM FOR THE CURRENT AND COMPARATIVE PERIODS::
Current period Comparative period
Right-of-use assets – land 5–6 years 5–6 years
Right-of-use assets – buildings 1–6 years 1–6 years
Right-of-use assets – equipment 1–5 years 1–5 years
The Company uses a standard approach for recognising and measuring all leases, except short-term leases (leases of up
to one year) and low-value leases (with a value of less than EUR 5 thousand). The Company recognises lease payments
in connection with short-term and low-value leases as costs in the period to which a lease relates using the straight-line
method over the entire lease term. For all other leases, the Company recognises a right-of-use asset and a lease liability
for leased assets.
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The Company recognises a right-of-use asset at the commencement of a lease. The cost of right-of-use assets in connection
with leases comprises the amount of the initially measured lease liability, initial direct costs and lease payments that were
made at or prior to the commencement of a lease, less lease incentives.
Right-of-use assets in connection with leases are measured at historical cost less value adjustments and impairment losses,
with an adjustment to cost at each remeasurement of lease liabilities. The Company impairs assets under lease in the same
manner as property, plant and equipment.
Liabilities for leased assets are recognised at the present value of remaining lease payments over the entire lease term.
Lease payments are discounted at the interest rate implicit in a lease if that rate can be determined, otherwise the Company
applies the incremental borrowing rate that it would have to pay if it acquired an asset with a similar value as a right-of-use
asset for a similar period, based on a similar guarantee in a similar economic environment. Following the commencement
of a lease, the amount of lease liabilities is increased for lease-related interest and reduced for all lease payments, while the
value of a lease is adjusted upon reassessment or a change in a lease.
At the commencement of a lease, lease liabilities are equal to the value of the associated right-of-use asset and are
reduced for payments, while the value of the right-of-use asset is reduced by depreciation charged over the lease term.
Depreciation rates are set taking into account the lease term. Interest incurred is charged to ﬁnance costs in the period in
question. The Company applies the exemption for short-term leases, i.e. leases where the lease term is 12 months or less. It
also applies the exemption for leases of low-value assets. The Company recognises lease payments on a straight-line basis
over the lease term for short-term and low-value leases.
Due to the situation caused by the COVID-19 pandemic, the Company applies the practical solution not to assess whether
an adjustment to lease payments that meet the conditions given below is a change in a lease. Those conditions are:
• the result of a change in lease payments is a change in consideration for a lease that is almost equal to or less than the
consideration for a lease immediately prior to that change;
• the reduction in lease payments only affects payments that would originally fall due on or before 30 June 2021 (i.e. an
adjustment to lease payments would meet this condition if it caused a reduction in lease payments on or before 30 June
2021 and an increase in lease payments after 30 June 2021); and
• here is no material change in other lease conditions.
In this case, the Company does not treat a change in lease payments as a change to an existing lease, but instead recognises
it in the income statement.
In sale and leaseback transactions in which it acts as seller, i.e. lessee, the Company measures a right-of-use asset
proportionately with that part of the previous carrying amount of the right-of-use asset that it has kept. Accordingly, it only
recognises the amount of gains or losses that relate to the rights that were transferred by the buyer, i.e. lessor.
Company as lessor of assets
As lessor, the Company recognises lease payments from operating leases as revenues on a straight-line basis over the
lease term. The Company discloses assets that it leases in the statement of ﬁnancial position with regard to the nature of an
asset that is the subject of a lease.
I. INVENTORIES
Inventories of material are valued at cost, which comprises the purchase price, import duties and the direct costs of
procurement. The purchase price is reduced by any discounts received. The weighted average price method is applied
in the use of materials.
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136
J. IMPAIRMENT OF ASSETS
1.Impairment of financial assets
Impairment of investments in subsidiaries
At the end of every ﬁnancial year, the Company assesses whether there are any indications that an investment may be
impaired. If such indications exist, it estimates the recoverable amount of investments in subsidiaries. The recoverable
amount of an asset is the greater of its fair value less disposal costs, or its value in use.
If the carrying amount of a ﬁnancial asset exceeds the recoverable amount, an investment in a subsidiary must be impaired.
The discounted cash ﬂow model cannot be used to calculate the recoverable amount for companies with suspended
operations. An estimate derived from other bases (e.g. an estimate of the net value of assets) is thus used.
The Company reverses impairment losses of investments in subsidiaries when reasons no longer exist for their impairment
by crediting ﬁnance income in the partial or full amount of impairment, depending on the assessment of the reversal of
impairment associated with those investments.
Impairment of operating receivables
The Company impairs operating receivables for expected credit losses over the life of those assets. Impairment losses on
trade receivables and other operating receivables (including the reversal of impairment losses) are disclosed in the income
statement in the item ‘loss due to the impairment of receivables’.
The Company impairs trade receivables (including receivables from leases) that are not subject to legal actions, enforcement
or bankruptcy proceedings, registered in compulsory composition proceedings prior to publication of conﬁrmation
thereof or in recovery proceedings via specialised institutions, or are not deemed doubtful based on other objective
reasons, by creating a value adjustment using impairment percentages with regard to the age of the receivables.
When measuring expected credit losses associated with such assets, the Company applies a simpliﬁed approach using a
‘provision matrix’ that is based on past experiences regarding written-off receivables and estimates for the future.
The Group impairs receivables that are subject to legal actions, enforcement or bankruptcy proceedings, registered
in compulsory composition proceedings prior to publication of conﬁrmation thereof or in recovery proceedings via
specialised institutions, or that are deemed doubtful based on other objective reasons, in 100% of their value, except
where the law permits a reduction in liabilities for calculated and unpaid value added tax. Impairments are reduced for
that amount.
The Company impairs receivables for interest on loans granted and deposits placed when it impairs loans and deposits.
It does not impair other operating receivables until they are more than 30 days past due, depending on the composition
of and past experience with those receivables. After that time, the Company individually assesses the probability of future
cash ﬂows from such receivables and impairs them accordingly.
Impairment of loans granted and deposits
The Company impairs loans granted and deposits based on the management’s assessment of their bad debt. In accordance
with IFRS 9, the Company transitioned from the incurred loss model to the expected loss model, according to which the
Company recognises both incurred losses and losses that it expects to incur in the future.
When assessing the impairment of loans granted, the Company assesses evidence of impairment for each loan separately.
If it assesses that the carrying amount of a loan exceeds its fair value (i.e. its realisable value), the Group impairs that loan. The
assessment of impairment is based on expected credit losses in connection with the probability of loan default over the
next 12 months, unless credit risk has risen signiﬁcantly since initial recognition. In such cases, the assessment of impairment
is based on the probability of default over the entire life of the ﬁnancial asset in question. Expected credit losses comprise
the difference between contractual cash ﬂows that have fallen due according to the relevant contract and all cash ﬂows
that the Group expects to receive. Expected cash ﬂows will also include cash ﬂows from the sale of a collateralised asset.
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Impairment losses for expected credit losses are assessed in two steps. For credit exposures for which there has been no
signiﬁcant increase in credit risk since initial recognition, impairments for expected credit losses are recognised for credit
losses resulting from potential defaults over the next 12 months. For those credit exposures for which there has been a
signiﬁcant increase in credit risk since initial recognition, the Company recognises an adjustment for losses that it expects
over the remaining life of an exposure, regardless of the default period. The Company deems obligations in connection
with a ﬁnancial asset not to be fulﬁlled when contractual payments are 90 days past due. In certain cases, the Company
may deem credit risk to have increased, even when it is probable, based on the relevant information, that it will not receive
unpaid contractual amounts in full.
The Company recognises the write-off of a ﬁnancial asset when it justiﬁably expects that it will not collect contractual cash
ﬂows. Impairment losses on these assets are disclosed in the income statement in the item ‘other ﬁnance costs’.
2. Impairment of financial assets
The Company reviews the carrying amount of property, plant and equipment, investment property and intangible assets at
each reporting date to determine whether there are any indications of impairment. If such indications exist, the recoverable
amount of an asset is estimated.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use or its fair value less selling
costs. In assessing value in use, estimated future cash ﬂows are discounted to their present value using a pre-tax discount
rate that reﬂects current market assessments of the time value of money and the risks speciﬁc to an asset. For impairment
testing, assets that cannot be tested individually are grouped into the smallest possible groups of assets that generate cash
ﬂows from continued use and that are largely independent of cash generated by other assets or groups of assets (cash-
generating unit).
The Company recognises the impairment of an asset or a cash-generating unit when its carrying amount exceeds its
recoverable amount. That impairment is disclosed as an expense in the income statement.
The Company reverses an impairment loss to the extent that the asset’s increased carrying amount does not exceed the
carrying amount that would have been determined, net of depreciation or amortisation, had no impairment loss been
recognised in previous years.
K. NON-CURRENT ASSETS HELD FOR SALE
Non-current assets or a disposal group comprising assets (applicable to investment property, intangible assets and non-
current ﬁnancial assets within non-current assets, and only applicable to land and buildings within property, plant and
equipment on grounds of materiality) whose carrying amount is reasonably expected to be settled primarily through sale
and not through further use are classiﬁed as assets held for sale, with that sale envisaged within the next twelve months, at
the latest.
A sale is highly likely when the entire plan and programme to ﬁnd a buyer are activated. An asset must also be actively
marketed and efforts made to achieve a price that corresponds to its current fair value. An asset is remeasured immediately
before its classiﬁcation to assets held for sale. Accordingly, a non-current asset (or disposal group) is recognised at the lower
of its carrying amount or fair value, less costs to sell.
The period for completion of a sale may be extended to more than one year due to special events and circumstances
that are beyond the control of the Company and if there is sufﬁcient evidence that the Company is consistently pursuing
its plans to dispose of the asset.
If an asset held for sale no longer meets the criteria for classiﬁcation to the aforementioned category, it must be reclassiﬁed
to another appropriate asset category, i.e. the category to which it was classiﬁed before being classiﬁed as an asset held
for sale.
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L. EMPLOYEE BENEFITS
Short-term employee benefits
Short-term employee beneﬁt obligations are measured on an undiscounted basis, and are disclosed as expenses as the
service of the employee is provided in respect of the speciﬁc short-term beneﬁt.
M. PROVISIONS
Provisions are recognised if, as a result of a past event, the Company has a present legal or constructive obligation that
can be estimated reliably, and it is probable that an outﬂow of economic beneﬁts will be required to settle the obligation.
Amounts recognised as provisions represent the best estimate of expenditure required for settlement as at the balance-
sheet date. In assessing the best estimate of provisions, risks and uncertainties associated with numerous events and
circumstances are also considered. Where the effect of the time value of money is material, the amount of provisions
represents the present value of expenditure expected to be required to settle an obligation.
Provisions are recognised by accruing the corresponding costs or expenses, and are reduced directly over time by the
costs and/or expenses that they were created to cover, except actuarial gains and losses from termination beneﬁts at
retirement due to changes in actuarial assumptions and experiential restatements that are recognised in the revaluation
surplus and transferred to retained earnings in the proportionate amount when they are used. That amount is calculated
using the ratio between provisions used during the year and the balance of provisions before use.
Provisions are derecognised when the contingencies for which they were created no longer apply, or when they are no
longer required. Revenues are recognised when provisions created by accruing the corresponding costs or expenses are
derecognised. Provisions are adjusted at the end of the accounting period so that their value is equal to the present value
of the expenditure expected to be required to settle the obligation in question.
Provisions for termination benefits and employee anniversary bonuses
In accordance with the applicable legislation, the collective agreement and internal rules, the Company is obliged to
pay employee anniversary bonuses to employees and termination beneﬁts upon retirement. Non-current provisions are
created for these purposes. No other pension obligations exist.
The aforementioned provisions are created in the amount of the estimated future payments for termination beneﬁts and
employee anniversary bonuses, discounted as at the date of the actuarial calculation.
Interest expense and any increase during the current year are recognised in the income statement as labour costs, while
interest is disclosed as a ﬁnance cost. Actuarial gains and losses from employee anniversary bonuses are recognised in the
income statement as labour costs, while actuarial gains and losses from termination beneﬁts upon retirement are recognised
in other comprehensive income in the revaluation surplus and transferred to retained earnings in the proportionate amount
when they are used. That amount is calculated using the ratio between provisions used during the year and the balance of
provisions before use. Provisions are used in an amount equal to the actual costs incurred for accrued termination beneﬁts
upon retirement and employee anniversary bonuses.
Non-current deferred income
The Company classiﬁes donations received for the acquisition of property, plant and equipment or for covering speciﬁc
costs to non-current deferred income. It is earmarked to cover the costs of the depreciation of the aforementioned assets
or to cover certain costs, and is used by way of a transfer to operating income in the amount of the depreciation of those
assets. Deferred income that will cover projected expenses over a period of more than one year is disclosed under non-
current deferred income.
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N. REVENUES FROM SERVICES RENDERED
Contracts with customers are only accounted for when the relevant conditions have been met. When approving contracts
with customers, the consideration that is expected in exchange for goods or services transferred to them is assessed.
Consideration received represents the transaction price. The transaction price represents the ﬁxed agreed consideration
in exchange for promised goods and/or the provision of services to a customer.
Revenues from services rendered are recognised by the Company in the income statement taking into account the stage
of completion of a transaction at the end of the reporting period or when performance obligations are fulﬁlled. The stage
of completion is assessed on the basis of a review of costs incurred (review of work performed – measurement of the
progress of a transaction).
Revenues from services rendered are measured at the transaction prices of completed services stated in invoices (fulﬁlment
of performance obligations at a given moment) or other documents, or at the prices of incomplete services taking into
account the stage of completion thereof (performance obligations are fulﬁlled over time).
In cases when a particular transaction (performance obligation) is not completed (fulﬁlled) as at the balance-sheet date,
the Company believes that no reliable assessment can be made regarding the outcome of such a transaction, but that the
progress of that transaction can be reasonably measured. Thus, the Company only recognises income up to the amount of
direct costs incurred, and for which it can be expected that they will be covered (contribution method).
Amounts collected on behalf of third parties, such as charged value-added tax and other levies (e.g. customs duties) are
excluded from sales revenue.
FULFILMENT OF PERFORMANCE OBLIGATIONS
Business line
Nature of and time required to fulfil performance obligations
to customers
Payment terms
LAND TRANSPORT
LOGISTICS SERVICES
INTERCONTINENTAL TRANSPORT
OTHER SERVICES
A customer sends an order for the execution of forwarding
transactions. The order must include all essential data for
the correct and timely execution thereof. A transaction
is deemed completed when all activities under an
order have been implemented. An order may contain
different services. A transaction is deemed completed:
- for services in connection with organising the transport of
goods: when transport is completed (i.e. the goods are
received or delivered);
- for customs clearance transactions: when goods are released
to the declaring party
- for the warehousing of goods: when goods are placed in
or removed from a warehouse, or other warehouse work is
performed (e.g. palletting and labelling); and
- for other transactions: when the agreed service is rendered.
An invoice is issued to the customer after a service has been
rendered.
In general, a customer must
pay for our services and
associated costs before
a service is rendered
(advance). Taking into
account a customer’s credit
rating, past experience with
a customer and commercial
agreements, an invoice for
services is payable within
30 days following the
rendering thereof.
State aid
We distinguish between state aid in connection with assets and state aid in connection with revenues.
a. State aid in connection with assets, including non-monetary support at fair value, is disclosed in the statement of ﬁnancial
position as deferred income and is consistently transferred to the income statement as revenues over the useful life of
the asset in question. The Company discloses deferred income that will cover projected expenses over a period of more
than one year under non-current deferred income.
b. State aid in connection with revenues comprises state aid in connection with the reimbursement of wage compensation
for employees, the exemption of the payment of social security contributions, etc. The Company recognises state aid
in connection with revenues in other operating revenues and not as a reduction in associated costs. It is recognised as
revenues in the periods in which the costs that such state aid is earmarked to cover are incurred. State aid is recognised
when there is reasonable assurance that the Company will fulﬁl the conditions to receive such aid and that it will, in fact,
receive it. If there is uncertainty in connection with the eligibility to receive state aid (i.e. the possibility exists that the aid
must be returned in the event of failure to fulﬁl certain conditions), the amount of state aid received is disclosed as
deferred income until the fulﬁlment/non-fulﬁlment of conditions.
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140
O. COSTS – EXPENSES
The Company recognises costs as expenses in the period in which they arise.
P. FINANCE INCOME AND FINANCE COSTS
Finance income primarily comprises interest income from investments, income from dividends and other shares in proﬁt,
income from the disposal of ﬁnancial assets measured at fair value through proﬁt or loss, positive exchange rate differences
and income from the reversal of the impairment of ﬁnancial assets. Interest income is recognised as it accrues, using
the effective interest method. Dividend income and income from other shares in proﬁt are recognised in the income
statement on the day a shareholder’s or owner’s right to payment was exercised.
Finance costs primarily comprise interest expense and other borrowing costs (unless capitalised), interest on leases, and
negative exchange rate differences and impairment losses on ﬁnancial assets. Borrowing costs are recognised in the
income statement in the period in which they arise using the effective interest method.
Q. CORPORATE INCOME TAX
Corporate income tax comprises current taxes and deferred taxes. Corporate income tax is disclosed in the income
statement, except to the extent that it relates to items disclosed directly in equity, in which case it is disclosed in other
comprehensive income.
Current tax is assessed in accordance with the applicable tax legislation as at the reporting date. The ﬁnancial year is the
same as the calendar year, which in turn is the same as the ﬁscal year.
Deferred tax is disclosed taking into account temporary differences between the carrying amounts of assets and liabilities
for ﬁnancial reporting purposes and the amounts used for tax reporting purposes.
A deferred tax liability is disclosed in the amount that is expected to be paid when the temporary differences are reversed,
based on the laws in force at the end of the reporting period.
A deferred tax asset is recognised to the extent that it is probable that future taxable proﬁts will be available against which
the deferred tax asset can be utilised.
R. NET EARNINGS PER SHARE
The Company discloses basic earnings per share and diluted earnings per share for its ordinary shares. Basic earnings per
share are calculated by dividing the proﬁt or loss pertaining to ordinary shareholders during the ﬁnancial year with the
weighted average number of ordinary shares (excluding treasury shares).
Diluted earnings per share are calculated by adjusting the proﬁt or loss pertaining to ordinary shareholders and the
weighted average number of ordinary shares during the ﬁnancial year for the effect of all dilutive potential ordinary shares.
The Company does not hold dilutive potential shares. Basic earnings per share and diluted earnings per share are thus
equal.
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4.2.3.1 Determination of fair value
Taking into account the Group’s accounting policies, the determination of the fair value of both ﬁnancial and non-ﬁnancial
assets and liabilities is required in a number of cases. The Company determined the fair values of individual groups of
assets for measurement and/or reporting purposes based on the methods described below. Where necessary, further
clariﬁcations regarding assumptions used to determine fair values are disclosed in the notes speciﬁc to that asset or liability.
Land
Following recognition, the Company measures land at a revalued amount equal to the fair value on the revaluation date
(i.e. the price that would be received when selling an asset or paid when transferring a liability in an orderly transaction,
on the principal (or most advantageous) market, between market participants at the measurement date under current
market terms, regardless of whether the price can be directly observed or estimated using another valuation technique).
Depending on the circumstances or situation, the fair value of land is measured using one or more valuation techniques.
They are the market approach, cost approach and income approach. The Company revalues land every ﬁve years or more
frequently if indications of impairment point to a signiﬁcant deviation in fair value. Based on an assessment of the effect
of a change in indicators of impairment, the amount by which the fair value of land deviates from its carrying amount is
assessed. An appraisal of land is performed for ﬁnancial reporting purposes in the event of a signiﬁcant deviation.
Investments in equities
The fair value of equities valued at fair value is determined taking into account the bid price at the end of the reporting
period.
The Company assessed that the carrying amount of current receivables and liabilities was a sufﬁciently precise approximation
of their fair value.
INTEREUROPA / FINANCIAL REPORT / 2020
142
4.2.3.2 Financial risk management
The Company is exposed to the following risks in the use of ﬁnancial instruments:
• credit risk,
• liquidity risk,
• market risk, and
• business risk.
This point discusses the Company’s exposure to the individual risks stated above, as well as its objectives, policies and
procedures for measuring and managing risks, as well as its management of capital. Other quantitative disclosures are
included in Note 30.
The management has adopted risk management guidelines as part of risk management rules. The Company has a Risk
Management Committee that is responsible for the development and supervision of risk management policies. Financial
risks are a part of the Group’s regular reporting on risks that the aforementioned committee regularly reports to the Audit
Committee.
Credit risk
Credit risk is the risk of ﬁnancial loss to the Company if a customer or counterparty to a ﬁnancial instrument fails to meet its
contractual obligations. Credit risk arises primarily in connection with the Company’s trade receivables.
The Company’s exposure to credit risk depends primarily on the characteristics of each customer. However, management
also takes into account the demographic structure of customers and the solvency risk associated with the sector and
country in which a customer operates, as these factors may affect credit risk, particularly in adverse economic conditions.
The relevant policies require an analysis of the creditworthiness of each major new customer, before the Company offers
its standard payment and delivery terms. The Company creates impairment losses that represent its estimated losses from
operating and other receivables and investments. The main elements of such a depreciation and impairment are the
speciﬁc part of the loss relating to individual signiﬁcant risks and the common part of the loss formed for groups of similar
assets due to previously incurred but as yet undeﬁned losses.
Liquidity risk
Liquidity risk is the risk that the Company will be unable to settle its ﬁnancial liabilities using cash or other ﬁnancial assets.
The Company ensures liquidity by always having sufﬁcient liquid assets to settle liabilities at maturity, under both normal
and the most demanding situations, without incurring unacceptable losses or risking damage to its reputation.
The Company primarily provides guarantees for potential customs liabilities that might arise from transit procedures, the
veriﬁcation of origin, and various analyses and/or the control of goods that are required for the performance of operational
business activities.
Market risk
Market risk is the risk that changes in market prices, such as exchange rates, interest rates and equity instruments, would
affect the income of the Company or the value of ﬁnancial instruments. The objectives of market risk management are to
manage and control exposure to market risks within reasonable limits, while optimising returns.
Business risk
Business risk is the risk of incurring a direct or indirect loss due to numerous reasons associated with processes at the
Company, staff, technology and the infrastructure, and as the result of external factors not related to credit, market and
liquidity risks. These include risks arising from legal and regulatory requirements, and generally accepted corporate
standards. Business risks derive from the overall operations of the Company. The objective is to manage business risks with
the aim of establishing a balance between the avoidance of ﬁnancial losses and damage to the Company’s reputation
and overall cost efﬁciency, and avoiding such control procedures that would hinder or limit self-initiative and creativity.
Primary responsibility for developing and introducing controls for managing business risks is borne by the head of each
organisational unit.
A programme of regular internal audits is implemented by the Internal Audit Department, which discusses the results of
internal audits with the heads of audited business units, while a summary is submitted to the Company’s Management
Board and the Audit Committee.
04 / FINANCIAL REPORT
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143
4.2.4. BUSINESS SEGMENTS
A business segment is an integral part of the Group:
• that engages in business activities from which it generates revenues and incurs expenses (including revenues and
expenses relating to transactions with other integral parts of the same group);
• whose operating results are reviewed regularly by an employee in a management position, who makes decisions
regarding the allocation of resources to a speciﬁc segment and who assesses the latter’s performance; and
• for which separate ﬁnancial data are available.
Disclosures by geographic business segment are based on an internal reporting system used by management in the
decision-making process.
INFORMATION BY GEOGRAPHICAL SEGMENT
(in EUR)
Slovenia Croatia
Bosnia and
Herzegovina
Serbia Montenegro
2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
Revenues from
external customers
100,479,944 108,791,957 23,830,915 24,066,027 6,945,994 7,072,822 5,279,124 5,096,543 4,983,954 6,284,228
Revenues from
transactions with
other segments
4,035,246 3,676,038 1,248,579 970,634 473,955 566,963 621,605 592,266 60,675 82,989
Total revenues
104,515,191 112,468,045 25,079,494 25,036,661 7,419,949 7,639,785 5,900,728 5,688,809 5,044,629 6,367,217
Amortisation and
depreciation
3,773,083 4,430,513 1,283,276 1,455,357 422,911 431,752 219,815 267,298 404,498 460,640
Operating proﬁt
or loss
4,393,778 5,165,114 1,984,984 1,360,045 -489,897 622,371 -775,519 -474,399 524,471 1,190,495
Interest income
143,213 476,150 14,343 3,043 0 0 11 449 55,464 66,309
Interest expense
764,045 1,758,975 35,339 44,896 13,142 18,718 60,580 59,547 16,500 21,045
Proﬁt or loss from
ordinary operations
3,042,695 5,233,154 1,962,638 1,331,716 -505,727 603,395 -851,285 -533,718 561,805 1,235,833
Investment result
recognised
according to the
equity method
0 0 0 0 0 0 0 0 0 0
Corporate income
tax
688,513 1,741,322 239,480 250,032 820 94,455 5,997 -1,440 65,661 116,072
Net proﬁt or loss
2,354,182 3,491,832 1,723,158 1,081,684 -506,547 508,940 -857,282 -532,278 496,144 1,119,761
(in EUR)
Slovenia Croatia
Bosnia and
Herzegovina
Serbia Montenegro
31
December
2020
31
December
2019
31
December
2020
31
December
2019
31
December
2020
31
December
2019
31
December
2020
31
December
2019
31
December
2020
31
December
2019
Assets
173,544,978 177,697,373 50,352,091 49,851,205 13,857,193 14,373,185 10,375,417 10,273,463 18,594,278 18,221,970
Non-current assets
145,090,711 148,719,385 39,114,701 41,040,017 11,732,676 12,017,805 9,167,395 9,214,673 11,314,155 12,146,639
Operating liabilities
15,479,877 18,087,058 4,096,673 4,163,737 1,329,280 1,172,668 1,089,834 963,979 497,478 502,635
Financial liabilities
58,687,045 62,375,402 572,996 1,040,692 224,051 329,317 2,534,855 1,801,787 723,525 843,422
Investment in
associate
39,059 39,059 0 0 0 0 0 0 0 0
INTEREUROPA / FINANCIAL REPORT / 2020
144
(in EUR)
Slovenia Croatia
Bosnia and
Herzegovina
Serbia Montenegro
2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
Revenues from
external customers
3,992,270 3,694,396 5,236,928 5,262,818 150,749,128 160,268,841 -23,960 83,859 150,725,168 160,352,650
Revenues from
transactions with
other segments
0 0 1,290,750 1,169,358 7,730,810 7,058,247 -7,730,810 -7,058,247 0 0
Total revenues
3,992,270 3,694,396 6,527,678 6,432,176 158,479,939 167,327,089 -7,754,770 -6,974,389 150,725,168 160,352,650
Amortisation and
depreciation
31,008 33,461 329,416 145,221 6,464,007 7,224,241 0 0 6,464,008 7,224,242
Operating proﬁt
or loss
165,834 -143,541 52,284 -111,723 5,855,934 7,608,363 -91,638 -84,828 5,764,296 7,523,536
Interest income
369 342 0 5,860 213,400 552,153 -114,145 -98,541 99,255 453,612
Interest expense
35,529 39,041 41,055 13,513 966,190 1,955,735 -114,145 -98,541 852,045 1,857,195
Proﬁt or loss from
ordinary operations
-342,180 140,553 10,972 -129,592 3,878,919 7,881,341 683,801 -1,439,823 4,562,722 6,441,520
Investment result
recognised
according to the
equity method
0 0 0 0 0 0 785 62 785 62
Corporate income
tax
-4,434 21,805 13,038 22,617 1,009,076 2,244,864 -14,311 0 994,768 2,244,867
Net proﬁt or loss
-337,747 118,748 -2,066 -152,210 2,869,843 5,636,477 698,110 -1,439,823 3,567,954 4,196,653
(in EUR)
Slovenia Croatia
Bosnia and
Herzegovina
Serbia Montenegro
31
December
2020
31
December
2019
31
December
2020
31
December
2019
31
December
2020
31
December
2019
31
December
2020
31
December
2019
31
December
2020
31
December
2019
Assets
1,349,053 1,855,097 3,565,621 3,854,009 271,638,632 276,126,301 -51,194,858 -52,775,350 220,443,774 223,350,952
Non-current assets
968,045 608,482 1,481,091 1,757,067 218,868,775 225,504,068 -44,385,047 -44,757,155 174,483,727 180,746,913
Operating liabilities
690,464 690,530 1,145,449 1,117,346 24,329,055 26,697,952 -1,976,830 -1,878,453 22,352,225 24,819,499
Financial liabilities
1,203,978 1,295,872 473,140 739,215 64,419,589 68,434,709 -5,804,293 -6,736,634 58,615,296 61,698,075
Investment in
associate
0 0 0 0 39,059 39,059 25,190 24,406 64,249 63,464
04 / FINANCIAL REPORT
INTEREUROPA / FINANCIAL REPORT / 2020
145
BREAKDOWN OF SALES REVENUE BY BUSINESS LINE AND COUNTRY
Intereuropa Group
(in EUR)
Slovenia Croatia Bosnia and Herzegovina
2020 2019 2020 2019 2020 2019
Revenues by business line
Land transport 45,819,641 51,957,942 16,975,909 17,434,092 5,260,239 5,202,930
Logistics solutions 20,484,494 19,273,088 4,566,982 4,518,244 703,328 651,157
Intercontinental transport 33,257,772 36,495,420 2,823,248 2,328,058 567,439 486,478
Other services 4,953,284 4,741,546 713,355 756,268 888,943 1,299,220
Total 104,515,191 112,467,996 25,079,494 25,036,662 7,419,949 7,639,785
Revenues generated by country (with respect to a customer’s head ofﬁce)
Slovenia 60,150,594 62,418,902 1,087,313 1,017,942 276,135 320,358
Croatia 1,947,505 1,814,678 20,322,002 20,315,251 71,142 51,924
Bosnia and Herzegovina 1,143,141 1,036,550 548,372 313,694 5,829,368 5,982,579
Montenegro 324,675 350,955 6,831 9,549 711 1,175
Other countries 40,949,276 46,846,911 3,114,976 3,380,226 1,242,593 1,283,749
Total 104,515,191 112,467,996 25,079,494 25,036,662 7,419,949 7,639,785
Intereuropa Group
(in EUR)
Serbia Montenegro Ukraine
2020 2019 2020 2019 2020 2019
Revenues by business line
Land transport 2,777,468 2,784,782 2,840,655 3,880,648 3,991,612 3,693,697
Logistics solutions 534,298 915,844 1,002,309 977,954 0 0
Intercontinental transport 2,562,909 1,958,411 390,182 417,566 0 0
Other services 26,053 29,771 811,483 1,091,048 658 699
Total 5,900,728 5,688,808 5,044,629 6,367,216 3,992,270 3,694,396
Revenues generated by country (with respect to a customer’s head ofﬁce)
Slovenia 550,005 451,932 137,918 167,317 213,685 260,784
Croatia 47,040 72,684 27,390 38,964 0 0
Bosnia and Herzegovina 62,005 165,160 79,995 135,654 0 0
Montenegro 66,847 58,931 4,111,967 4,541,931 0 0
Other countries 5,174,831 4,940,101 687,359 1,483,350 3,778,585 3,433,612
Total 5,900,728 5,688,808 5,044,629 6,367,216 3,992,270 3,694,396
INTEREUROPA / FINANCIAL REPORT / 2020
146
Intereuropa Group
(in EUR)
Other countries Exclusions Total
2020 2019 2020 2019 2020 2019
Revenues by business line
Land transport 5,043,299 5,120,198 4,940,223 5,054,225 77,768,600 85,020,064
Logistics solutions 514,892 358,425 49,500 28,847 27,756,803 26,665,865
Intercontinental transport 628,737 598,833 1,046,138 507,835 39,184,149 41,776,931
Other services 340,749 354,719 1,718,909 1,383,481 6,015,616 6,889,790
Total 6,527,677 6,432,175 7,754,770 6,974,388 150,725,168 160,352,650
Revenues generated by country (with respect to a customer’s head ofﬁce)
Slovenia 764,686 907,775 2,078,764 2,048,548 61,101,572 63,496,462
Croatia 6,771 32,941 1,656,634 1,383,883 20,765,216 20,942,559
Bosnia and Herzegovina 3,900 0 1,389,968 1,130,181 6,276,813 6,503,456
Montenegro 1,410 0 367,774 402,448 4,144,667 4,560,093
Other countries 5,750,910 5,491,459 2,261,630 2,009,328 58,436,900 64,850,080
Total 6,527,677 6,432,175 7,754,770 6,974,388 150,725,168 160,352,650
Intereuropa, d. d.
(in EUR)
2020 2019
Revenues by business line
Land transport 45,819,640 51,957,942
Logistics solutions 20,484,494 19,273,087
Intercontinental transport 32,887,713 36,045,862
Other services 4,772,180 4,550,671
Total 103,964,027 111,827,562
Revenues generated by country (with respect to a customer’s head ofﬁce)
Slovenia 59,937,712 62,184,990
Croatia 1,947,301 1,813,498
Bosnia and Herzegovina 1,143,057 1,036,550
Montenegro 324,675 350,955
Other countries 40,611,282 46,441,569
Total 103,964,027 111,827,562
The Group and Company do not monitor statement of ﬁnancial position items by business line.
04 / FINANCIAL REPORT
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147
4.2.5 NOTES TO THE FINANCIAL STATEMENTS
Note 1: Sales revenue
(in EUR)
Intereuropa Group Intereuropa, d. d.
2020 2019 2020 2019
Revenues from sales to companies in the Group 0 0 4,105,793 3,764,156
Income from sales to others 150,725,168 160,352,650 99,858,234 108,063,406
Total 150,725,168 160,352,650 103,964,027 111,827,562
The sales revenue of the Group and Company in 2020 comprised revenues from services rendered.
The Group and Company provide logistics services through three business lines: land transport (groupage, domestic
transport, road transport, railway freight and customs clearance services), logistic solutions (warehousing and distribution)
and intercontinental transport (air freight, sea freight and car logistics services). The Group and Company also offer additional
services, such as the leasing of business premises, parking services at customs terminals, trade fair logistics and insurance
brokerage services.
The Group and Company disclose rental income in sales revenue. The Group generated EUR 4,563,510 in rental income
in 2020 (EUR 5,721,441 in 2019), while the Company generated EUR 3,043,849 (EUR 4,109,947 in 2019). Sales revenue less
rental income is equal to revenues from contracts with customers.
SALES REVENUE WITH RESPECT TO THE TIMING OF RECOGNITION
(in EUR)
2020 2019
Intereuropa Group Intereuropa, d. d. Intereuropa Group Intereuropa, d. d.
Revenues
from
completed
services
Revenues
incomplete
services
Revenues
from
completed
services
Revenues
incomplete
services
Revenues
from
completed
services
Revenues
incomplete
services
Revenues
from
completed
services
Revenues
incomplete
services
Revenues by business line
Land transport 70,128,912 155,256 44,243,077 96,445 77,596,187 155,457 48,344,210 133,024
Logistics solutions 32,322,588 113,670 21,012,134 17,201 32,514,598 129,895 22,118,538 3,508
Intercontinental
transport
41,399,925 210,124 34,557,865 205,103 43,415,240 172,900 37,534,385 163,525
Other services 6,394,179 514 3,832,202 0 6,357,001 11,372 3,519,300 11,072
Total 150,245,604 479,564 103,645,278 318,749 159,883,026 469,624 111,516,433 311,129
INTEREUROPA / FINANCIAL REPORT / 2020
148
Note 2: Other operating income
(in EUR)
Intereuropa Group Intereuropa, d. d.
2020 2019 2020 2019
Gains on the sale of property, plant and equipment 392,020 436,152 17,920 186,243
Income from the reversal of impairment losses on property, plant
and equipment, and investment property
118,651 1,333,415 76 251,036
Income from the reversal of provisions 266,507 699,220 99,401 710
Government grants received 1,195,377 89,657 829,066 85,330
Other operating income 169,535 333,589 30,228 183,003
Total 2,142,090 2,892,033 976,691 706,322
Under the item ‘state aid’, the Group received EUR 1,059,143 in state aid to contain the negative effects of the COVID-19
pandemic in the form of the reimbursement of wage compensation paid to employees, exemption from the payment
of contributions and the preservation of jobs. The entire value of subsidies received is not subject to the repayment terms
deﬁned by the country in which a speciﬁc company is located.
The Company received state aid in the amount of EUR 696,459 to bridge problems during the COVID-19 pandemic in the
form of the reimbursement of wage compensation paid to employees and exemption from the payment of contributions.
During the year, the Company received subsidies in the amount of EUR 138,180 that relate to the mitigation of the effects
of the COVID 19 pandemic, which the Company must return to the state because it failed to meet the conditions for their
recognition (the threshold of 90% of the sales revenue achieved in 2019 was exceeded). For this reason, the Company
disclosed a liability to the state in the aforementioned amount.
Note 3: Costs of goods, materials and services
(in EUR)
Intereuropa Group Intereuropa, d. d.
2020 2019 2020 2019
Costs of materials and cost of goods sold 3,712,970 4,344,536 1,738,474 1,910,983
Costs of services within the Group 0 0 2,025,228 2,090,776
Costs of services
direct costs 92,926,629 99,324,825 65,068,593 71,381,469
costs of hired labour and student work 3,468,300 3,720,131 3,038,970 3,084,279
maintenance of property, plant and equipment 1,674,845 1,685,326 941,368 943,519
maintenance of intangible assets 842,960 839,843 741,439 737,082
costs of short-term leases of property, plant and equipment 214,646 363,371 62,989 34,849
costs of leases of intangible assets 413,091 406,710 412,585 403,502
insurance premiums 925,442 927,014 592,924 601,958
costs of asset security 895,772 822,779 559,750 519,877
costs of intellectual services 552,681 633,092 213,905 223,670
costs associated with the Supervisory Board and its committees 168,501 184,495 160,674 182,836
other costs of services 2,991,707 3,104,023 1,190,509 1,277,897
Total 108,787,544 116,356,145 76,747,408 83,392,697
04 / FINANCIAL REPORT
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149
Direct costs of both the Group and Company primarily comprise the costs of subcontractors (e.g. the costs of transport and
port-related services) that are directly related to the provision of the services that an individual company sells. Other costs
of services comprise the reimbursement of work-related costs to employees, the costs of intellectual services, the costs of
rents, municipal services, education and training costs, security costs, the costs of hired workers, and the costs of payment
transactions.
The costs of hired labour and student work include recognised expenses for employee participation in proﬁts for 2020 in
the amount of EUR 112,725 (including social security costs) and relate to the Company’s contractual obligation that will be
settled one year after the approval of the annual report (Notes 4 in 28).
Note 4: Labour costs
(in EUR)
Intereuropa Group Intereuropa, d. d.
2020 2019 2020 2019
Costs of wages and salaries 20,991,935 20,373,548 13,415,937 12,928,766
Social security costs 4,425,164 4,410,301 2,746,228 2,719,186
Other labour costs (excluding social security costs):
annual leave allowance 795,017 847,544 631,412 725,778
transportation and meal allowances 2,001,655 2,045,880 1,436,777 1,537,149
other labour costs 444,227 533,681 212,968 300,604
expenses for employee participation in proﬁts 466,469 722,602 456,774 703,018
Total 29,124,467 28,933,556 18,900,096 18,914,501
Labour costs include expenses for employee participation in proﬁts for 2020 in the amount of EUR 489,836 at the Group
level and to EUR 479,676 at the Company, and relate to that portion of the contractual obligation of Slovenian Group
companies that will be settled one year after the approval of the annual report for 2020.
NUMBER OF EMPLOYEES BY QUALIFICATION LEVEL
Categories of educational
qualifications
Intereuropa Group
Beginning of
2020
End of 2020 Changes in 2020
Average number
of employees
by educational
qualiﬁcation in
2020*
Average number
of employees
by educational
qualiﬁcation in
2019*
Qualiﬁcation levels I to III 83 75 -8 79 82
Qualiﬁcation levels IV to V 785 774 -11 780 771
Qualiﬁcation levels VI to IX 488 488 0 488 489
Total 1,356 1,337 -19 1,347 1,342
Categories of educational
qualifications
Intereuropa, d. d.
Beginning of
2020
End of 2020 Changes in 2020
Average number
of employees
by educational
qualiﬁcation in
2020*
Average number
of employees
by educational
qualiﬁcation in
2019*
Qualiﬁcation levels I to III 52 47 -5 50 50
Qualiﬁcation levels IV to V 289 274 -15 282 283
Qualiﬁcation levels VI to IX 268 265 -3 267 271
Total 609 586 -23 599 604
* The average number of employees is calculated using the balance of employees at the beginning and end of the year.
INTEREUROPA / FINANCIAL REPORT / 2020
150
Note 5: Amortisation and depreciation
(in EUR)
Intereuropa Group Intereuropa, d. d.
2020 2019 2020 2019
Depreciation of property, plant and equipment, and investment
property
4,659,678 5,436,952 2,943,508 3,446,634
Amortisation of intangible assets 462,929 548,259 430,772 512,365
Depreciation of right-of-use assets under leases 1,341,401 1,239,031 397,636 467,967
Total 6,464,008 7,224,242 3,771,916 4,426,966
The Group and Company re-assessed the useful life of buildings in 2020 and amended that estimate, such that the useful
life of high structures was changed to 50 years, while the useful life of low structures was changed to 30 years. The effect
of the change to the useful life of buildings was lower depreciation costs in 2020, for EUR 861,799 at the Group level and
EUR 548,155 at the Company.
Note 6: Impairment losses on receivables (including the reversal of impairment losses)
Impairment losses on receivables (including the reversal of impairment losses) amounted to EUR 270,504 at the Group
level in 2020 and to EUR 127,618 at the Company (income from the reversal of losses amounted to EUR 461,911 at the
Group level and EUR 531,710 at the Company in 2019). The aforementioned effect is disclosed in the tables ‘Changes in
impairment losses on current trade receivables’ and ‘Changes in impairment losses on other current operating receivables’.
Note 7: Other operating expenses
(in EUR)
Intereuropa Group Intereuropa, d. d.
2020 2019 2020 2019
Building land use fees and similar expenses 1,321,380 1,410,576 871,116 875,870
Other levies 85,848 81,332 5,205 8,608
Impairment of property, plant and equipment and investment
property
159,765 520,543 0 45,819
Write-downs and losses from the sale of property, plant and
equipment, and investment property
28,749 36,850 13,363 6,328
Expenses from impairments and write-offs of inventories 65,945 1,363 3,052 0
Costs from the recognition of provisions 171,735 387,453 0 181,210
Other operating expenses 609,637 1,185,169 150,622 126,655
Total 2,443,059 3,623,286 1,043,358 1,244,490
Other operating expenses in the amount of EUR 609,637 primarily comprise membership fees, compensation for damages
and other expenses.
04 / FINANCIAL REPORT
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151
Note 8: Finance income and costs
(in EUR)
Intereuropa Group Intereuropa, d. d.
2020 2019 2020 2019
Interest income from Group companies 0 0 71,854 56,611
Interest income from others 99,255 453,612 69,186 418,604
Income from dividends and other shares in proﬁt from Group
companies
0 0 25,990 901,422
Income from dividends and other shares in proﬁt 116
Income from participating interest in associate 0 0 0 7,661
Income from the disposal of ﬁnancial assets 0 1,820 0 0
Income from the reversal of impairment losses of investments in
participating interests and shares, and loans
1,179 9,836 66,867 933,089
Net exchange rate differences 0 350,124 9,604 639
Total ﬁnance income 100,434 815,508 243,501 2,318,026
Interest expense -852,045 -1,857,195 -764,026 -1,758,758
Impairment losses on loans granted and deposits -5,259 -10,400 -497,011 -342,451
Finance costs from impairments and write-offs of ﬁnancial assets -4,240 -30,000 -329,263 -151,450
Net exchange rate differences -441,250 9 688 0
Total ﬁnance costs -1,302,794 -1,897,586 -1,589,612 -2,252,659
Proﬁt/loss from ﬁnancing activities -1,202,360 -1,082,078 -1,346,111 65,367
Interest income and expenses were calculated using the effective interest method.
Interest expenses were down by EUR 1 million at the Group level and at the Company primarily as the result of the
reﬁnancing of loans on 31 January 2020, when a considerably lower contractual interest rate was agreed.
At the Company, impairment losses on loans granted and deposits placed, and ﬁnance costs from impairments and write-
offs of ﬁnancial assets comprise the following:
• the impairment of a long-term loan to TOV TEK ZTS, Uzhhorod, Ukraine in the amount of EUR 89,004;
• the impairment of a long-term loan to TOV Intereuropa Kiev, Ukraine in the amount of EUR 236,565; and
• the impairment of the investment in the equity of AD Intereuropa Belgrade, Serbia in the amount of EUR 437,011.
The Group disclosed negative exchange rate differences in the amount of EUR 441,250 as the result of the appreciation of
the Ukrainian hryvnia (UAH) and Serbian dinar (RSD).
Note 9: Results recognised according to the equity method
In 2020, the Group recognised the results of the associate Rail Cargo Logistics, d. o. o., Ljubljana, in which it holds 26%
participating interest, in the amount of EUR 785 while it recognised EUR 62 at the end of 2019).
INTEREUROPA / FINANCIAL REPORT / 2020
152
Note 10: Corporate income tax (current and deferred tax)
ADJUSTMENTS TO THE EFFECTIVE TAX RATE
(in EUR)
Intereuropa Group Intereuropa, d. d.
2020 2019 2020 2019
Current tax -643,377 -468,614 -365,908 -268,587
Deferred tax -523,616 -1,776,253 -485,607 -1,450,104
Tax -1,166,993 -2,244,867 -851,515 -1,718,691
Pre-tax proﬁt 4,562,720 6,482,420 2,993,801 5,106,639
Tax calculated according to prescribed rate -613,805 -1,076,070 -568,823 -970,261
Tax from unrecognised expenses -804,933 -816,240 -434,506 -434,950
Tax from revenues deducted from taxable base 156,407 511,810 19,510 490,251
Tax from revenues added to taxable base -5,123 -103,074 -5,123 -10,218
Tax from expenses deducted from taxable base 8,586 19,887 0 0
Tax from tax allowances and the coverage of tax losses 623,034 742,060 623,034 722,446
Tax relating to deferred taxes -485,607 -1,418,737 -485,607 -1,450,104
Tax from equity items 0 -65,855 0 -65,855
Tax from other items -45,552 -38,648 0 0
Tax -1,166,993 -2,244,867 -851,515 -1,718,691
Effective tax rate 25.58% 34.63% 28.44% 33.66%
A tax rate of 19% was taken into account in the calculation of current corporate income tax for the Company in 2020. Group
Companies apply the prescribed corporate income rates in their respective countries. Those rates range from 9% to 19%,
inclusive..
Current income tax
(in EUR)
Intereuropa Group Intereuropa, d. d.
2020 2019 2020 2019
Current income tax disclosed in the income statement 643,377 468,614 365,908 233,459
Current income tax disclosed in the statement of other comprehensive
income
85,457 47,684 0 35,798
Total 728,834 516,298 365,908 269,257
Unused tax losses at the Company amounted to EUR 82,040,145 as at 31 December 2020 (EUR 84,333,280 at the end of the
previous year). Deferred tax assets were recognised in the amount of EUR 4,564,890 for unused tax losses in the amount
of EUR 24,025,737, while no deferred assets were recognised for the remaining amount of EUR 58,014,408 (they would
have totalled EUR 11,022,738). Deferred tax assets comprise tax losses with no limit on their application in future tax periods
(years).
04 / FINANCIAL REPORT
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153
CHANGES IN DEFERRED TAX ASSETS AND LIABILITIES THAT WERE NOT NETTED IN 2020
Deferred tax assets
(in EUR)
Intereuropa Group Intereuropa, d. d.
Balance as at
1 January 2020
Change
in income
statement
Change in other
comprehensive
income
Exchange rate
differences
Balance as at
31 December
2020
Balance as at
1 January 2020
Change
in income
statement
Change in other
comprehensive
income
Balance as at
31 December
2020
Property, plant and
equipment
1,973,602 -22,446 0 -29,564 1,921,592 0 0 0 0
Revaluation of
receivables owing to
value restatements
6,243 -85 0 -6,067 91 0 0 0 0
Revaluation of ﬁnancial
assets
104,385 0 0 0 104,385 104,385 0 0 104,385
Provisions 249,539 -9,242 13,781 -1,072 253,006 173,680 -4,844 13,782 182,618
Tax loss 5,148,080 -379,262 -186,000 -3,536 4,579,282 5,134,586 -383,696 -186,000 4,564,890
Other 113,874 75,130 0 0 189,004 110,417 75,159 0 185,576
Total 7,595,723 -335,905 -172,219 -40,239 7,047,360 5,523,068 -313,381 -172,218 5,037,469
Deferred tax liabilities
Balance as at
1 January 2020
Change
in income
statement
Change in other
comprehensive
income
Exchange rate
differences
Balance as at
31 December
2020
Balance as at 1
January 2020
Change
in income
statement
Change in other
comprehensive
income
Balance as at
31 December
2020
Revaluation of land 10,820,454 -26,006 -99,621 -1,325 10,693,502 7,336,921 0 6 7,336,927
Total 10,820,454 -26,006 -99,621 -1,325 10,693,502 7,336,921 0 6 7,336,927
INTEREUROPA / FINANCIAL REPORT / 2020
154
CHANGES IN DEFERRED TAX ASSETS AND LIABILITIES THAT WERE NOT NETTED IN 2019
Deferred tax assets
(in EUR)
Intereuropa Group Intereuropa, d. d.
Balance as at
1 January 2019
Change
in income
statement
Change in other
comprehensive
income
Exchange rate
differences
Balance as at
31 December
2019
Balance as at
1 January 2019
Change
in income
statement
Change in other
comprehensive
income
Balance as at
31 December
2019
Property, plant and
equipment
2,056,579 -78,473 5,244 -9,748 1,973,602 0 0 0 0
Revaluation of
receivables owing to
value restatements
6,243 0 0 0 6,243 0 0 0 0
Revaluation of ﬁnancial
assets
104,385 0 0 0 104,385 104,385 0 0 104,385
Provisions 230,050 -39,422 59,185 -274 249,539 106,148 8,347 59,185 173,680
Tax loss 7,145,286 -1,756,780 -240,426 0 5,148,080 6,997,438 -1,603,996 -258,856 5,134,586
Other 980 112,894 0 0 113,874 0 110,417 0 110,417
Total 9,543,523 -1,761,781 -175,997 -10,022 7,595,723 7,207,971 -1,485,232 -199,671 5,523,068
Deferred tax liabilities
Balance as at
1 January 2019
Change
in income
statement
Change in other
comprehensive
income
Exchange rate
differences
Balance as at
31 December
2019
Balance as at
1 January 2019
Change
in income
statement
Change in other
comprehensive
income
Balance as at
31 December
2019
Revaluation of land 11,116,169 14,212 -223,937 -85,990 10,820,454 7,571,719 0 -234,798 7,336,921
Total 11,116,169 14,212 -223,937 -85,990 10,820,454 7,571,719 0 -234,798 7,336,921
The management’s assessment of the reversal of deferred tax assets as the result of tax losses from previous years (in the
amount of EUR 134,000) is based on data from the projection of Intereuropa’s operations in the period 2021 to 2025. The
following assumptions were taken into account:
• the utilisation of tax losses until 2025, taking into account valid tax rates;
• amended legislation from 2020 on, which permits the utilisation of tax losses and other allowances in the maximum
amount of 63% of the tax base;
• the planned sale of certain real estate; and
• in addition to taxable proﬁt from the income statement, also assumed was the utilisation of tax losses in the amount of
50% of the revaluation surplus for land, assuming that the tax base will facilitate utilisation in that amount (besides other
allowances).
The management assumed the normal operations of the Company during the projection period. In the event of signiﬁcant
deviations from the Company’s planned operating results, the utilisation of tax losses will be reassessed and the amount of
deferred tax assets for tax losses corrected accordingly.
04 / FINANCIAL REPORT
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155
Note 11: Net earnings per share
The Group’s net proﬁt amounted to EUR 3,567,953 in 2020 (EUR 4,196,653 the previous year). Of the aforementioned
amount, EUR 3,647,267 pertains to the controlling owner (EUR 3,897,755 the previous year), while the negative amount of
EUR -79,314 pertains to non-controlling owners (EUR 298,898 the previous year).
The Company’s net proﬁt amounted to EUR 2,314,512 in 2020 (EUR 3,387,948 the previous year).
BASIC EARNINGS PER SHARE
(in EUR)
Intereuropa Group Intereuropa, d. d.
2020 2019 2020 2019
Net proﬁt of ordinary shareholders 3,647,267 3,897,755 1,351,307 2,008,276
Average number of ordinary shares (excluding treasury shares) 16,812,703 16,812,703 16,812,703 16,812,703
Basic earnings per share 0.22 0.23 0.08 0.12
Basic earnings per share are calculated as net proﬁt or loss pertaining to the parent company’s ordinary shareholders
divided by the weighted average number of ordinary shares (excluding treasury shares).
DILUTED EARNINGS PER SHARE
(in EUR)
Intereuropa Group Intereuropa, d. d.
2020 2019 2020 2019
Net proﬁt 3,647,267 3,897,755 2,314,512 3,387,948
Average number of total shares* 27,470,668 27,470,668 27,470,668 27,470,668
Diluted earnings per share ((in EUR)) 0.13 0.14 0.08 0.12
* For the needs of calculating this indicator, the Company deﬁned preference shares as potential ordinary shares that can be exchanged for ordinary
shares. Because the principle of exchangeability has not been agreed with the holders of preference shares, the calculations in the table are of an
informative nature and assume an exchange ratio of 1:1
Diluted earnings per ordinary share are equal to basic earnings per share because the parent company does not hold any
dilutive potential ordinary shares..
INTEREUROPA / FINANCIAL REPORT / 2020
156
Note 12: Property, plant and equipment
(in EUR)
Intereuropa Group Intereuropa, d. d.
31 December
2020
31 December
2019
31 December
2020
31 December
2019
Land and buildings
Land 70,910,232 70,842,976 41,444,763 41,444,722
Buildings 61,159,895 63,095,614 29,332,013 30,158,600
Plant and equipment 6,116,283 6,739,067 3,869,786 4,445,098
Right-of-use assets under leases 2,476,052 4,010,069 791,308 1,362,118
Investments in foreign ﬁxed assets 31,277 30,069 5,380 6,089
Property, plant and equipment in acquisition 616,957 543,803 346,343 224,798
Total 141,310,696 145,261,598 75,789,593 77,641,425
The carrying amount of real estate pledged as collateral by the Group was EUR 40,649,191 as at the reporting date (EUR
95,066,839 at the end of the previous year). The Company had no other legal restrictions on the disposal of assets. The
carrying amount of real estate pledged as collateral by the Company was EUR 20,690,549 as at 31 December 2020 (EUR
64,546,339 at the end of the previous year). There were no other legal restrictions on the Group or Company with respect
to the disposal of assets.
The cost of the Group’s property, plant and equipment whose carrying amount was zero as at 31 December 2020 and are
still in use was EUR 26,747,127 (EUR 33,454,843 at the end of 2019). The cost of the Company’s property, plant and equipment
whose carrying amount was zero as at 31 December 2020 and are still in use was EUR 19,075,642 (EUR 25,835,567 at the
end of 2019). -
The carrying amount of the Group’s land would be equal to EUR 14,158,274 as at 31 December 2020 if the cost model was
used (EUR 13,518,841 at the end of 2019). The carrying amount of the Company’s land would be equal to EUR 9,060,656
at the end of 2020 if the cost model was used (EUR 9,060,656 at the end of 2019).
The Group had commitments to purchase property, plant and equipment in the amount of EUR 476,386 as at the reporting
date (EUR 478,638 as at 31 December 2019), while the Company’s commitments totalled EUR 365,113 (EUR 310,778 at the
end of 2019).
04 / FINANCIAL REPORT
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157
CHANGES IN THE GROUP’S PROPERTY, PLANT AND EQUIPMENT
Intereuropa Group
(in EUR)
Land
Buildings
Other plant and
equipment
Equipment under
finance leases
Land under
operating lease
Buildings under
operating lease
Equipment under
operating lease
Investments in
property, plant
and equipment
owned by others
Property,
plant and
equipment under
construction
Total
COST
Balance as at 1 January
2020
76,704,284 143,100,802 35,900,432 1,221,831 27,671 3,084,863 1,454,339 57,462 623,023 262,174,707
Acquisitions
0 0 0 0 0 109,026 127,242 0 1,957,717 2,193,985
Activations
0 668,330 1,165,737 0 0 0 0 11,512 -1,845,579 0
Sales
0 0 -227,071 0 0 0 0 0 0 -227,071
Write-downs
0 -98,810 -828,661 0 0 0 -72,084 0 0 -999,555
Transfer to investment
property
0 -54,646 0 0 0 0 0 0 -36,918 -91,564
Transfer from available-
for-sale assets
2,644,044 0 0 0 0 0 0 0 0 2,644,044
Revaluation to fair value
-79,164 0 0 0 0 0 0 0 0 -79,164
Transfer between items
0 0 -31,742 0 0 0 0 0 0 -31,742
Change in lease
agreement
0 0 0 0 0 0 -78,845 0 0 -78,845
Correction of costs
0 0 0 0 -2,158 -291,257 -140,793 0 0 -434,208
Other
40 0 2,564 0 0 -22,867 0 0 0 -20,263
Exchange rate differences
-628,612 -646,888 -242,287 -18,541 -2,088 -22,186 -9,061 0 -2,395 -1,572,058
Balance as at
31 December 2020
78,640,592 142,968,788 35,738,972 1,203,290 23,425 2,857,579 1,280,798 68,974 695,848 263,478,266
DEPRECIATION AND IMPAIRMENT
Balance as at 1 January
2020
-5,861,308 -80,005,188 -29,161,343 -737,203 -5,979 -615,381 -420,071 -27,392 -79,220 -116,913,085
Depreciation
0 -2,263,456 -1,683,920 -163,704 -5,201 -734,597 -437,900 -10,305 0 -5,299,083
Sales
0 0 202,644 0 0 0 0 0 0 202,644
Write-downs
0 82,613 822,851 0 0 0 51,162 0 0 956,626
Transfer to investment
property
0 3,245 0 0 0 0 0 0 0 3,245
Transfer from available-
for-sale assets
-2,061,104 0 0 0 0 0 0 0 0 -2,061,104
Impairments
-140,092 -11,355 0 0 0 0 0 0 0 -151,447
Reversal of impairments
60,828 37,526 0 0 0 0 0 0 0 98,354
Transfer between items
0 0 31,742 0 0 0 0 0 0 31,742
Change in lease
agreement
0 0 0 0 0 0 75,840 0 0 75,840
Correction of costs
0 0 0 0 432 68,314 12,871 0 0 81,617
Other
0 0 -2,542 0 0 3,811 0 0 0 1,269
Exchange rate differences
271,316 347,722 167,879 11,480 792 3,796 2,498 0 329 805,812
Balance as at
31 December 2020
-7,730,360 -81,808,893 -29,622,689 -889,427 -9,956 -1,274,057 -715,600 -37,697 -78,891 -122,167,570
CARRYING AMOUNT
Balance as at
1 January 2020
70,842,976 63,095,614 6,739,089 484,628 21,692 2,469,482 1,034,268 30,070 543,803 145,261,622
Balance as at
31 December 2020
70,910,232 61,159,895 6,116,283 313,863 13,469 1,583,522 565,198 31,277 616,957 141,310,696
INTEREUROPA / FINANCIAL REPORT / 2020
158
Intereuropa Group
(in EUR)
Land
Buildings
Other plant and
equipment
Equipment under
finance leases
Land under
operating lease
Buildings under
operating lease
Equipment under
operating lease
Investments in
property, plant
and equipment
owned by others
Property,
plant and
equipment under
construction
Total
COST
Reported as at 1 January 2019
85,688,202 166,907,826 34,781,621 1,250,499 0 0 0 2,389 389,264 289,019,801
Restatement
0 -90 0 0 27,154 2,138,598 1,076,648 0 0 3,242,310
Balance as at 1 January 2019
85,688,202 166,907,736 34,781,621 1,250,499 27,154 2,138,598 1,076,648 2,389 389,264 292,262,111
Acquisitions
0 0 0 0 0 947,265 429,302 0 2,622,326 3,998,893
Activations
0 506,812 1,861,333 0 0 0 0 21,964 -2,390,109 0
Sales
-179,044 -28,952 -432,731 -24,562 0 0 0 0 0 -665,289
Write-downs
0 -10,870 -408,409 0 0 0 0 0 0 -419,279
Exclusion of subsidiary from
consolidation
0 0 -6,364 0 0 0 0 0 0 -6,364
Exclusion due to termination
of lease
0 0 0 0 0 -1,344 -50,185 0 0 -51,529
Transfer to investment
property
-5,794,188 -24,147,829 -5,754 0 0 0 0 0 0 -29,947,771
Transfer to available-for-sale
assets
-2,902,520 -47,000 0 0 0 0 0 0 0 -2,949,520
Revaluation to fair value
-532,744 0 0 0 0 0 0 0 0 -532,744
Transfer between items
0 -28,151 -4,957 0 0 0 0 33,108 0 0
Other
0 0 87 0 0 0 0 0 0 87
Exchange rate differences
424,579 -50,943 115,608 -4,108 517 344 -1,426 0 1,542 486,113
Balance as at 31 December 2019
76,704,285 143,100,803 35,900,434 1,221,829 27,671 3,084,863 1,454,339 57,461 623,023 262,174,708
DEPRECIATION AND IMPAIRMENT
Balance as at 1 January 2019
-8,900,035 -93,873,785 -28,259,932 -580,755 0 0 0 -371 0 -131,614,878
Depreciation
0 -3,228,606 -1,619,001 -183,040 -5,838 -616,698 -433,489 -3,886 0 -6,090,558
Sales
0 1,663 361,719 24,245 0 0 0 0 0 387,627
Write-downs
0 7,717 406,791 0 0 0 0 0 0 414,508
Exclusion of subsidiary from
consolidation
0 0 5,715 0 0 0 0 0 0 5,715
Exclusion due to termination
of lease
0 0 0 0 0 1,344 13,144 0 0 14,488
Transfer to investment
property
1,424,544 15,996,086 5,754 0 0 0 0 0 0 17,426,384
Transfer to available-for-sale
assets
2,278,090 3,000 0 0 0 0 0 0 0 2,281,090
Impairments
-420,456 -42,145 0 0 0 0 0 0 -78,964 -541,565
Reversal of impairments
49,000 1,074,344 0 0 0 0 0 0 0 1,123,344
Transfer between items
0 17,914 5,221 0 0 0 0 -23,135 0 0
Other
0 0 -124 0 0 0 0 0 0 -124
Exchange rate differences
-292,452 38,623 -67,487 2,349 -141 -28 274 0 -256 -319,118
Balance as at 31 December 2019
-5,861,309 -80,005,189 -29,161,344 -737,201 -5,979 -615,382 -420,071 -27,392 -79,220 -116,913,087
CARRYING AMOUNT
Balance as at 1 January 2019
76,788,167 73,033,951 6,521,689 669,744 27,154 2,138,598 1,076,648 2,018 389,264 160,647,233
Balance as at 31 December 2019
70,842,976 63,095,614 6,739,090 484,628 21,692 2,469,481 1,034,268 30,069 543,803 145,261,621
04 / FINANCIAL REPORT
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159
CHANGES IN THE GROUP’S PROPERTY, PLANT AND EQUIPMENT
Intereuropa, d. d.
(in EUR)
Land
Buildings
Other plant and
equipment
Land under
operating lease
Buildings under
operating lease
Equipment under
operating lease
Investments in
property, plant
and equipment
owned by others
Property, plant
and equipment
under construction
Total
COST
Balance as at 1 January 2020
41,549,767 78,080,475 24,407,020 6,642 1,049,275 759,681 7,091 224,798 146,084,749
Acquisitions
0 0 0 0 0 13,050 0 1,137,124 1,150,174
Activations
0 464,185 551,394 0 0 0 0 -1,015,579 0
Sales
0 0 -49,431 0 0 0 0 0 -49,431
Write-downs
0 -91,873 -601,537 0 0 -45,552 0 0 -738,962
Change in lease agreement
0 0 0 0 0 -78,845 0 0 -78,845
Correction of costs
0 0 0 0 -199,763 -16,636 0 0 -216,399
Other
40 0 2,562 0 0 0 0 0 2,602
Balance as at 31 December
2020
41,549,807 78,452,787 24,310,008 6,642 849,512 631,698 7,091 346,343 146,153,888
DEPRECIATION AND IMPAIRMENT
Balance as at 1 January 2020
-105,045 -47,921,876 -19,961,921 -1,107 -233,555 -218,818 -1,002 0 -68,443,324
Depreciation
0 -1,280,966 -1,123,618 -1,107 -177,918 -218,611 -709 0 -2,802,929
Sales
0 0 49,431 0 0 0 0 0 49,431
Write-downs
0 82,068 598,428 0 0 29,853 0 0 710,349
Change in lease agreement
0 0 0 0 0 75,840 0 0 75,840
Correction of costs
0 0 0 0 43,088 5,792 0 0 48,880
Other
0 0 -2,542 0 0 0 0 0 -2,542
Balance as at 31 December
2020
-105,045 -49,120,774 -20,440,222 -2,214 -368,385 -325,944 -1,711 0 -70,364,295
CARRYING AMOUNT
Balance as at 1 January 2020
41,444,722 30,158,599 4,445,099 5,535 815,720 540,863 6,089 224,798 77,641,425
Balance as at 31 December
2020
41,444,762 29,332,013 3,869,786 4,428 481,127 305,754 5,380 346,343 75,789,593
INTEREUROPA / FINANCIAL REPORT / 2020
160
Intereuropa, d. d.
(in EUR)
Land
Buildings
Other plant and
equipment
Land under
operating lease
Buildings under
operating lease
Equipment under
operating lease
Investments in
property, plant
and equipment
owned by others
Property, plant
and equipment
under construction
Total
COST
Reported as at 1 January
2019
44,853,873 94,057,088 23,945,914 0 0 0 2,389 15,382 162,874,646
Restatement
0 0 0 6,642 899,554 714,088 0 0 1,620,284
Balance as at 1 January 2019
44,853,873 94,057,088 23,945,914 6,642 899,554 714,088 2,389 15,382 164,494,930
Acquisitions
0 0 0 0 151,065 95,778 0 1,347,342 1,594,185
Activations
0 167,773 965,538 0 0 0 4,702 -1,137,926 87
Sales
0 0 -154,245 0 0 0 0 0 -154,245
Write-downs
0 -10,870 -344,434 0 -1,344 -50,185 0 0 -406,833
Transfer to investment
property
-3,128,173 -16,133,515 -5,754 0 0 0 0 0 -19,267,442
Revaluation to fair value –
increase
440,506 0 0 0 0 0 0 0 440,506
Revaluation to fair value –
decrease
-616,440 0 0 0 0 0 0 0 -616,440
Balance as at 31 December
2019
41,549,766 78,080,476 24,407,019 6,642 1,049,275 759,681 7,091 224,798 146,084,748
DEPRECIATION AND IMPAIRMENT
Balance as at 1 January 2019
-121,407 -57,629,481 -19,371,020 0 0 0 -371 0 -77,122,279
Depreciation
0 -1,892,821 -1,095,137 -1,107 -234,899 -231,962 -631 0 -3,456,557
Sales
0 0 154,168 0 0 0 0 0 154,168
Write-downs
0 7,717 344,314 0 1,344 13,144 0 0 366,519
Transfer to investment
property
19,724 11,418,780 5,754 0 0 0 0 0 11,444,258
Impairments
-3,361 -42,145 0 0 0 0 0 0 -45,506
Reversal of impairments
0 216,074 0 0 0 0 0 0 216,074
Balance as at 31 December
2019
-105,044 -47,921,876 -19,961,921 -1,107 -233,555 -218,818 -1,002 0 -68,443,323
CARRYING AMOUNT
Balance as at 1 January 2019
44,732,466 36,427,607 4,574,894 6,642 899,554 714,088 2,018 15,382 87,372,651
Balance as at 31 December
2019
41,444,722 30,158,600 4,445,098 5,535 815,720 540,863 6,089 224,798 77,641,425
04 / FINANCIAL REPORT
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161
As part of the regular veriﬁcation of the fair value of real estate, the Group appraised real estate in Montenegro and Ukraine
during the 2020 ﬁnancial year. That appraisal was carried out by a certiﬁed appraiser. The appraiser used the market
approach to appraise the value of land and the income approach to appraise the value of buildings. A capitalisation rate
ranging from 9.75% to 10.5% was applied in Montenegro and a rate of 13.5% was applied in Ukraine for the purpose of
assessing the recoverable amount of buildings. A deduction for vacancy of 10% and a deduction of 1% for bad debt
were applied in Montenegro. A deduction for vacancy of 12.5% and a deduction of 1.25% for bad debt were applied in
Ukraine. The real estate valuation for 2019 was carried out with respect to cash-generating units by individual country (i.e.
by individual location). The market approach and income approach were used to perform the valuation. The recoverable
amount of cash-generating units was based on fair value less costs to sell. A capitalisation rate ranging from 7.7% to 10% was
applied. A deduction for vacancy of 10% and a deduction of 1% for bad debt were applied in 2019.
When estimating the useful life of buildings, the Group and Company amended that estimate, such that the useful life of
high structures was changed to 50 years, while the useful life of low structures was changed to 30 years. The effect of the
change to the useful life of buildings was lower depreciation costs in 2020 in connection with buildings held in property,
plant and equipment, by EUR 712,905 at the Group level and by EUR 417,374 at the Company.
LEASE COSTS
(in EUR)
Intereuropa Group Intereuropa, d. d.
2020 2019 2020 2019
Amortisation and depreciation costs 1,341,401 1,239,031 397,636 467,967
Interest expenses on lease liabilities 111,694 112,778 27,346 43,106
Costs of short-term leases of real estate and equipment 214,646 363,371 62,989 34,849
Total 1,667,741 1,715,180 487,971 545,922
LEASE PAYMENTS AND LEASE LIABILITIES
(in EUR)
Intereuropa Group Intereuropa, d. d.
2020 2019 2020 2019
Lease payments for short-term leases of real estate and
equipment (disclosed in cash ﬂows from operating activities)
210,277 320,000 68,267 25,449
Payment of lease liabilities comprising principal (disclosed in
cash ﬂows from ﬁnancing activities)
1,420,804 1,222,000 451,581 460,452
Total 1,631,081 1,542,000 519,848 485,901
INTEREUROPA / FINANCIAL REPORT / 2020
162
Note 13: Investment property
(in EUR)
Intereuropa Group Intereuropa, d. d.
2020 2019 2020 2019
COST
Reported as at 1 January 52,203,730 22,626,478 37,330,944 18,415,620
Acquisitions 62,222 19,957 56,942 19,957
Transfer from property, plant and equipment 91,564 29,947,771 0 19,267,441
Transfer to available-for-sale assets -370,000 0 0 0
Sales -1,718,536 0 -101,016 0
Write-downs -260 -5,443 -260 -5,443
Revaluation to fair value – decrease 0 -366,631 0 -366,631
Exchange rate differences -115,236 -18,402 0 0
Balance as at 31 December 50,153,484 52,203,730 37,286,610 37,330,944
DEPRECIATION AND IMPAIRMENT
Reported as at 1 January -28,241,845 -10,452,114 -20,143,214 -8,277,861
Depreciation -701,997 -585,496 -538,215 -458,132
Transfer from property, plant and equipment -3,245 -17,426,384 0 -11,444,257
Transfer to available-for-sale assets 32,362 0 0 0
Sales 1,444,913 0 62,243 0
Write-downs 174 2,387 174 2,387
Impairments -8,316 -314 0 34,649
Reversal of impairments 49 210,071 0 0
Exchange rate differences 66,713 10,005 0 0
Balance as at 31 December -27,411,192 -28,241,845 -20,619,012 -20,143,214
CARRYING AMOUNT
Reported as at 1 January 23,961,885 12,174,364 17,187,730 10,137,759
Balance as at 31 December 22,742,292 23,961,885 16,667,598 17,187,730
The fair value of the Group’s investment property was EUR 22,747,604 at the end of 2020 (EUR 26,965,000 at the end of
2019), while the value of the Company’s investment property was EUR 16,667,598 (EUR 19,839,000 at the end of 2019).
The carrying amount of investment property pledged as collateral by the Group was EUR 3,272,986 as at the reporting
date (EUR 17,554,371 at the end of the previous year). The carrying amount of investment property pledged as collateral by
the Company was EUR 1,374,343 at the end of 2020 (EUR 13,352,796 at the end of 2019). That amount represents additional
collateral for liabilities for which the underlying collateral comprises pledged items of property, plant and equipment
As part of the regular veriﬁcation of the fair value of real estate, the Group appraised real estate in Montenegro during the
2020 ﬁnancial year. That appraisal was carried out by a certiﬁed appraiser. The market approach was used to appraise the
value of land, while the income approach was used to assess the recoverable amount of buildings. A capitalisation rate
ranging from 9.75% to 10.5% was applied.
When estimating the useful life of buildings, the Group and Company amended that estimate, such that the useful life of
high structures was changed to 50 years, while the useful life of low structures was changed to 30 years. The effect of the
change to the useful life of buildings was lower depreciation costs in 2020 in connection with buildings held in investment
property, by EUR 187,967 at the Group level and by EUR 130,776 at the Company.
04 / FINANCIAL REPORT
INTEREUROPA / FINANCIAL REPORT / 2020
163
INCOME AND EXPENSES FROM INVESTMENT PROPERTY
(in EUR)
Intereuropa Group Intereuropa, d. d.
2020 2019 2020 2019
Rental income from investment property 4,563,510 3,605,139 3,043,849 3,088,382
Direct operating expenses from investment property -1,832,145 -1,909,578 -1,645,063 -1,662,287
Total 2,731,365 1,695,561 1,398,786 1,426,095
Neither the Group or Company had binding contracts to purchase investment property at the end of 2020.
Note 14: Intangible assets
(in EUR)
Intereuropa Group Intereuropa, d. d.
31 December
2020
31 December
2019
31 December
2020
31 December
2019
Long-term property rights 343,907 463,970 212,912 299,355
Goodwill 41,721 41,721 0 0
Other intangible assets 2,594,894 2,316,988 2,593,246 2,313,896
Intangible assets under construction 1,960 540,550 1,960 540,550
Total 2,982,482 3,363,229 2,808,118 3,153,801
The majority of long-term property rights comprises rights associated with computer programmes.
Other intangible assets comprise software to support comprehensive logistics services. The results of an impairment test for
other intangible assets performed by the Group and Company on the reporting date indicated the need for impairments.
The cost of the Group’s intangible assets whose carrying amount was zero as at 31 December 2020 and are still in use was
EUR 4,383,037 (EUR 2,640,910 at the end of the previous year). The cost of the Company’s intangible assets whose carrying
amount was zero as at 31 December 2020 and are still in use was EUR 3,968,255 (EUR 2,351,935 at the end of 2019).
The Group had commitments to purchase intangible assets in the amount of EUR 8,826 as at the reporting date (EUR
156,019 at the end of the previous year), while the Company’s commitments totalled EUR 8,826 (EUR 155,973 at the end
of 2019).
INTEREUROPA / FINANCIAL REPORT / 2020
164
CHANGES IN INTANGIBLE ASSETS IN 2020
(in EUR)
Intereuropa Group Intereuropa, d. d.
Long-term
property rights
Other
intangible
assets
Goodwill
Intangible
assets under
construction
Total
Long-term
property rights
Other
intangible
assets
Intangible
assets under
construction
Total
COST
Balance as at 1 January
2020
4,949,044 4,463,489 41,721 540,550 9,994,804 4,282,299 4,455,783 540,550 9,278,632
Acquisitions
0 0 0 85,089 85,089 0 0 85,089 85,089
Activations
23,038 600,641 0 -623,679 0 23,038 600,641 -623,679 0
Write-downs
-21,596 0 0 0 -21,596 0 0 0 0
Transfer from property,
plant and equipment
31,742 0 0 0 31,742 0 0 0 0
Transfer between items
6,031 -6,031 0 0 0 0 0 0 0
Exchange rate
differences
-7,657 -27 0 0 -7,684 0 0 0 0
Balance as at
31 December 2020
4,980,602 5,058,072 41,721 1,960 10,082,355 4,305,337 5,056,424 1,960 9,363,721
AMORTISATION AND IMPAIRMENT
Balance as at 1 January
2020
-4,485,075 -2,146,501 0 0 -6,631,576 -3,982,944 -2,141,887 0 -6,124,831
Amortisation
-141,639 -321,291 0 0 -462,930 -109,481 -321,291 0 -430,772
Write-downs
21,595 0 0 0 21,595 0 0 0 0
Transfer from property,
plant and equipment
-31,742 0 0 0 -31,742 0 0 0 0
Transfer between items
-4,595 4,595 0 0 0 0 0 0 0
Exchange rate
differences
4,761 19 0 0 4,780 0 0 0 0
Balance as at
31 December 2020
-4,636,695 -2,463,178 0 0 -7,099,873 -4,092,425 -2,463,178 0 -6,555,603
CARRYING AMOUNT
Balance as at 1 January
2020
463,969 2,316,988 41,721 540,550 3,363,228 299,355 2,313,896 540,550 3,153,801
Balance as at
31 December 2020
343,907 2,594,894 41,721 1,960 2,982,482 212,912 2,593,246 1,960 2,808,118
04 / FINANCIAL REPORT
INTEREUROPA / FINANCIAL REPORT / 2020
165
CHANGES IN INTANGIBLE ASSETS IN 2019
(in EUR)
Intereuropa Group Intereuropa, d. d.
Long-term
property rights
Other
intangible
assets
Goodwill
Intangible
assets under
construction
Total
Long-term
property rights
Other
intangible
assets
Intangible
assets under
construction
Total
COST
Balance as at 1 January
2019
5,125,629 4,462,411 41,713 445,880 10,075,633 4,141,372 4,455,783 445,880 9,043,035
Acquisitions
0 0 0 246,311 246,311 0 0 235,597 235,597
Activations
150,595 1,046 0 -151,641 0 140,927 0 -140,927 0
Write-downs
-330,000 0 0 0 -330,000 0 0 0 0
Exchange rate
differences
2,820 33 8 0 2,861 0 0 0 0
Balance as at
31 December 2019
4,949,044 4,463,490 41,721 540,550 9,994,805 4,282,299 4,455,783 540,550 9,278,632
AMORTISATION AND IMPAIRMENT
Balance as at 1 January
2019
-4,571,484 -1,841,765 0 0 -6,413,249 -3,773,974 -1,838,492 0 -5,612,466
Amortisation
-243,537 -304,723 0 0 -548,260 -208,969 -303,396 0 -512,365
Write-downs
330,000 0 0 0 330,000 0 0 0 0
Exchange rate
differences
-53 -14 0 0 -67 0 0 0 0
Balance as at
31 December 2019
-4,485,074 -2,146,502 0 0 -6,631,576 -3,982,943 -2,141,888 0 -6,124,831
CARRYING AMOUNT
Balance as at 1 January
2019
554,145 2,620,646 41,713 445,880 3,662,384 367,398 2,617,291 445,880 3,430,569
Balance as at
31 December 2019
463,970 2,316,988 41,721 540,550 3,363,229 299,356 2,313,895 540,550 3,153,801
Note 15: Other non-current assets
The other non-current assets of the Group and Company in the amount of EUR 27,602 (EUR 23,105 at the end of 2019)
comprise non-current deferred costs and expenses.
Note 16: Non-current operating receivables
Non-current operating receivables amounted to EUR 239,799 at the Group level at the end of 2020 (EUR 303,320 at the
end of 2019) and to EUR 233,652 at the Company (EUR 291,236 at the end of 2019). The majority of non-current operating
receivables comprise receivables from customers in composition proceedings.
INTEREUROPA / FINANCIAL REPORT / 2020
166
Note 17: Loans granted and deposits
(in EUR)
Intereuropa Group Intereuropa, d. d.
31 December
2020
31 December
2019
31 December
2020
31 December
2019
Long-term loans and deposits 39,898 52,544 0 0
Loans to others 629 1,559 0 0
Deposits 39,269 50,985 0 0
Short-term loans and deposits 2,598,166 1,010,109 2,198,062 2,325,951
Loans to subsidiaries 0 0 2,198,062 2,315,956
Loans to others 766 1,111 0 0
Deposits 2,597,400 1,008,998 0 9,995
Total 2,638,064 1,062,653 2,198,062 2,325,951
At the end of 2020, the Group disclosed short-term deposits pledged as collateral in the amount of EUR 300,000 (EUR
980,000 at the end of 2019).
Based on an assessment, the Company recognised the impairment of loans to TOV TEK ZTS, Uzhhorod in the amount of
EUR 89,004, and the impairment of loans to TOV Intereuropa Ukraine, Kiev in the amount of EUR 236,565. The Company
applied the following assumptions for the purpose of assessing the impairment of investments in subsidiaries:
• the discounted cash ﬂow model and net asset value approach;
• a WACC of between 9.3% and 14.5%, taking into account a long-term inﬂation rate of 2%; and
• valuation based on data from projections of future operations for the period 2021 to 2025.
CHANGES IN LOANS GRANTED AND DEPOSITS
(in EUR)
Intereuropa Group Intereuropa, d. d.
2020 2019 2020 2019
Balance as at 1 January 1,062,653 1,145,398 9,995 29,985
New loan/deposit 2,600,048 76,165 0 0
Reversal of impairments 5 10 5 10
Repayment -1,017,770 -190,035 -10,000 -20,000
Transfer to current portion -641 -12,088 0 0
Impairments -1,649 0 0 0
Exchange rate differences -4,582 -111 0 0
Balance as at 31 December 2,638,064 1,062,653 0 9,995
Short-term loans granted to subsidiaries by the parent company are secured by bills of exchange in the amount of EUR
451,331. Remaining loans in the amount of EUR 1,746,731 were unsecured (at the end of 2019, loans in the amount of EUR
531,335 were secured by bills of exchange, loans in the amount of EUR 92,325 were secured by other forms of collateral
and loans in the amount of EUR 1,692,296 were unsecured).
04 / FINANCIAL REPORT
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167
Note 18: Other non-current financial assets
(in EUR)
Intereuropa Group Intereuropa, d. d.
31 December
2020
31 December
2019
31 December
2020
31 December
2019
Non-current investments in shares and participating interests in
subsidiaries
0 0 44,451,958 44,823,281
Non-current investment in a participating interest in an associate 64,249 63,464 39,059 39,059
Other non-current ﬁnancial assets 29,348 122,046 27,159 27,159
Total 93,597 185,510 44,518,176 44,889,499
Investments in subsidiaries
(in EUR)
Percentage
of ownership
as at 31
December
2020/31
December
2019
Value of
equity as at
31 December
2020
Value of
equity as at
31 December
2019
Value of
participating
interest as at
31 December
2020
Value of
participating
interest as at
31 December
2019
Interagent, d. o. o., Koper 100.00% 230,065 217,034 430,015 430,015
Interzav d. o. o., Koper 71.28% 55,713 67,743 48,499 48,499
Intereuropa, logističke usluge, d. o. o., Zagreb 99.96% 42,741,986 41,783,883 22,104,055 22,104,055
Intereuropa sajam, d. o. o., Zagreb 51.00% 731,876 666,838 32,206 32,206
Intereuropa Skopje d. o. o., Skopje 99.56% 1,159,382 1,274,974 855,132 855,132
Intereuropa RTC d. d., Sarajevo 95.77% 11,728,225 12,241,081 7,438,270 7,438,270
A.D. Intereuropa logističke usluge, Belgrade 73.62% 5,904,042 6,776,483 3,220,657 3,657,668
TOV TEK ZTS, Uzhhorod 89.93% -146,233 3,325 0 0
Intereuropa Kosova L.L.C. 90.00% 722,990 654,645 137,238 137,238
Zetatrans A.D., Podgorica 69.27% 16,330,825 15,928,825 10,185,885 10,120,197
TOV Intereuropa – Kiev, Ukraine 100.00% -415,637 -304,495 0 0
The Company uses the discounted cash ﬂow model and net asset value approach to assess the recoverable amount of
investments in subsidiaries. The higher of the two values given by those methods is disclosed in the books of account.
Valuation is based on data from projections of future operations for the period 2021 to 2025, and the use of a WACC of
between 9.3% and 14.5%, taking into account a long-term inﬂation rate of 2%.
Because the appraised value of the investments in AD Intereuropa logističke usluge, Belgrade, Zetatrans A.D., Podgorica
and TOV TEK ZTS, Uzhhorod according to the discounted cash ﬂow model is lower than the carrying amount of those
investments, their value was also appraised using the net asset value approach. In addition to the aforementioned
companies, the value of TOV Intereuropa, Kiev, Ukraine (dormant company) was also appraised based on the net value
of assets. Based on appraisals performed, the Company reversed the impairment of the investment in participating
interests and shares of the subsidiary AD Zetatrans, Podgorica in the amount of EUR 65,688, and impaired the investment in
participating interests and shares of AD Intereuropa logističke usluge, Belgrade in the amount of EUR 437,011.
INTEREUROPA / FINANCIAL REPORT / 2020
168
CHANGES IN INVESTMENTS IN SUBSIDIARIES
(in EUR)
Intereuropa, d. d.
2020 2019
Balance as at 1 January 44,823,281 44,257,048
Capital increase 60,000 62,450
Impairments -497,011 -342,450
Reversal of impairments 65,688 846,233
Balance as at 31 December 44,451,958 44,823,281
Investment in associate
This item comprises an investment in the associate Rail Cargo Logistics, Železniška špedicija, d. o. o., Ljubljana, in which
Intereuropa holds a 26% participating interest. The carrying amount of the Group’s investment was EUR 64,249 as at 31
December 2020 (EUR 63,464 at the end of 2019). The carrying amount of the Company’s investment (EUR 39,059) was
unchanged relative to the comparable period in 2019.
CHANGES IN INVESTMENT IN AN ASSOCIATE
(in EUR)
Intereuropa Group
2020 2019
Balance as at 1 January 63,464 71,064
Proﬁt according to the equity method 785 62
Distribution of proﬁt 0 -7,662
Balance as at 31 December 64,249 63,464
ASSETS, LIABILITIES, REVENUES AND EXPENSES OF THE COMPANY
(in EUR) 31 December 2020 31 December 2019
ASSETS 1,780,132 1,947,043
Non-current assets 54,603 51,629
Current assets 1,725,529 1,895,414
LIABILITIES 1,780,132 1,947,043
Equity 165,259 162,240
Non-current liabilities 36,306 41,701
Current liabilities 1,578,567 1,743,102
(in EUR) 2020 2019
Revenues 12,364,901 13,133,567
Expenses (including corporate income tax) 12,364,923 13,133,330
Proﬁt from ordinary operations 4,657 2,325
Other comprehensive income 0 0
Total comprehensive income 3,018 237
04 / FINANCIAL REPORT
INTEREUROPA / FINANCIAL REPORT / 2020
169
Investments in the shares of other companies measured at fair value through profit or loss
Investments in ﬁnancial assets measured at fair value through other comprehensive income amounted to EUR 29,348 as at
31 December 2020, a change of EUR 92,698 relative to the comparable reporting date (EUR 122,046 at the end of 2019).
The Company’s investments in the aforementioned shares amounted to EUR 27,159 as at 31 December. That value was
unchanged relative to the end of 2019.
The Group and Company had no such assets pledged as collateral or security for liabilities recognised in the statement of
ﬁnancial position or for contingent liabilities.
CHANGES IN FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
(in EUR)
Intereuropa Group Intereuropa, d. d.
2020 2019 2020 2019
Balance as at 1 January 122,046 31,183 27,159 27,159
Sales -87,827 0 0 0
Transfer between items 0 82,472 0 0
Revaluation to fair value -436 8,391 0 0
Exchange rate differences -4,435 0 0 0
Balance as at 31 December 29,348 122,046 27,159 27,159
Note 19: Available-for-sale assets
Available-for-sale assets comprise real estate, the sale of which is planned in a short period of time. The balance of available-
for-sale assets was 337,638 at the Group level at the end of 2020 (EUR 2,700,944 at the end of 2019), while the Company
had no available-for-sale assets.
CHANGES IN AVAILABLE-FOR-SALE ASSETS
(in EUR)
Intereuropa Group
2020 2019
Balance as at 1 January 2,700,944 4,714,672
Transfer from property, plant and equipment 0 668,457
Transfer to property, plant and equipment -582,940 0
Transfer from investment property 337,638 0
Sales -2,017,577 -2,713,677
Reversal of impairments 20,172 0
Exchange rate differences -120,599 31,492
Balance as at 31 December 337,638 2,700,944
INTEREUROPA / FINANCIAL REPORT / 2020
170
Note 20: Assets from contracts with customers
The Group’s assets from contracts with customers as at 31 December 2020 in the amount of EUR 510,601 (EUR 533,431
at the end of 2019) comprised receivables from incomplete services in the amount of EUR 479,564 and from uncharged
customs and other duties that arise in customs clearance procedures that are charged to customers (as suspense items) in
the amount of EUR 31,037.
The Company’s receivable from sales at the end of 2020 in the amount of EUR 341,298 (EUR 349,131 at the end of 2019)
comprised receivables from incomplete services in the amount of EUR 302,178 and from uncharged customs and other
duties that arise in customs clearance procedures that are charged to customers (as suspense items) in the amount of EUR
22,549.
Note 21: Current operating receivables
(in EUR)
Intereuropa Group Intereuropa, d. d.
31 December
2020
31 December
2019
31 December
2020
31 December
2019
Current operating receivables from Group companies 0 0 651,562 706,806
Current operating receivables from Group companies
for interest
0 0 208,030 201,710
Current trade receivables 27,870,099 29,548,893 19,579,906 20,394,556
Other current operating receivables 2,472,198 1,849,291 1,733,757 1,106,794
Total 30,342,297 31,398,184 22,173,255 22,409,866
As at 31 December 2020, current operating receivables in the amount of EUR 5,416,440 at the Group level and EUR
391,512 at the Company were secured by enforcement drafts, guarantees and liens, the retention of title or another form
of collateral (EUR 7,215,344 at the Group level and EUR 360,368 at the Company at the end of 2019).
As at the reporting date, the Group and Company had no receivables pledged as collateral (representing additional
collateral for contingent liabilities for which the underlying collateral comprises pledged items of property, plant and
equipment). Receivables in the amount of EUR 10,000,000 were pledged as collateral at the end of 2019.
Note 22: Other current assets
Other current assets amounted to EUR 320,583 at the Group level on the last day of 2020 (EUR 395,199 as at 31 December
2019) and to EUR 99,001 at the Company (EUR 189,326 at the end of 2019), and comprise current deferred costs.
Note 23: Cash and cash equivalents
Cand cash equivalents amounted to EUR 11,609,486 at the Group level as at 31 December 2020 (EUR 6,283,037 as at 31
December 2019), and to EUR 2,374,180 at the Company (EUR 2,756,729 as at 31 December 2019), and comprised cash held
in bank accounts, call deposits and cash in hand. The reasons for increases and decreases in cash and cash equivalents
during the ﬁnancial year are presented in the statement of cash ﬂows.
04 / FINANCIAL REPORT
INTEREUROPA / FINANCIAL REPORT / 2020
171
Note 24: Equity
Share capital
The Company’s share capital amounted to EUR 27,488,803 as at 31 December 2020, and is divided into 16,830,838 ordinary
registered freely transferable no-par-value shares and 10,657,965 freely transferable no-par-value preference shares.
Ordinary shares provide their holders the right to participate in the management of the Company (voting right), the right
to a share in proﬁts and the right to a corresponding portion of residual assets after the liquidation or bankruptcy of the
Company. The number of shares was unchanged relative to the situation as at 31 December 2019.
Preference shares provide their holders the right to a share in proﬁts and the right to a corresponding portion of residual
assets after the liquidation or bankruptcy of the Company. Preference shares give their holders priority in the sharing of
proﬁts in the amount of EUR 0.01 (preferential amount) per share. The preferential amount is paid out in addition to the
share in proﬁts received by the shareholders, in accordance with the relevant resolution on the use of distributable proﬁt.
Share premium account
The share premium account comprises amounts from the simple reduction of Intereuropa’s share capital, and may be used
under the conditions and for the purposes set out by law. The share premium account is not distributable. This item was
unchanged in 2020.
Profit reserves
The proﬁt reserves of the Group amounted to EUR 5,160,392 as at 31 December 2020 and were unchanged relative to the
end of 2019. In addition to legal reserves in the amount of EUR 4,655,544, they also comprise reserves for treasury shares
in the amount of EUR 180,394 and an equal amount of treasury shares as a deduction item, as well as reserves under the
Articles of Association in the amount of EUR 504,848. The parent company holds 18,135 treasury shares. The original cost of
treasury shares was EUR 180,394. The parent company holds no rights arising from treasury shares. Other Group companies
do not hold its shares. The number of treasury shares was unchanged in 2020.
The Company’s proﬁt reserves amounted to EUR 2,748,880 as at 31 December 2020. In addition to legal reserves in the
amount of EUR 2,748,880, they also comprise reserves for treasury shares in the amount of EUR 180,394 and an equal
amount of treasury shares as a deduction item. The Company holds 18,135 treasury shares. The original cost of treasury
shares was EUR 180,394. The Company holds no rights arising from treasury shares. Other Group companies do not hold
its shares. The number of treasury shares was unchanged in 2020. Proﬁt reserves were unchanged in 2019.
Fair value reserves
The Group’s fair value reserves amounted to EUR 44,420,915 at the end of 2020 (EUR 45,023,339 at the end of 2019), and
comprised the revaluation of land, including the revaluation of land prior to transfer to investment property in the amount
of EUR 45,370,901 (the amount of revaluation is reduced for deferred taxes in the amount of EUR 9,853,500), and reserves
for actuarial losses from the revaluation of provisions for termination beneﬁts in the negative amount of EUR -901,260 (the
amount of revaluation is reduced for deferred taxes in the amount of EUR 77,034), as well as the revaluation of ﬁnancial
assets measured at fair value through other comprehensive income in the negative amount of EUR -48,726. Changes
during the ﬁnancial year are disclosed in the statement of comprehensive income.
The Company’s fair value reserves amounted to EUR 30,544,627 at the end of 2020 (EUR 30,627,173 at the end of 2019), and
comprised the revaluation of land, including the revaluation of land prior to transfer to investment property in the amount
of EUR 31,278,480 (the amount of revaluation is reduced for deferred taxes in the amount of EUR 7,336,927), and reserves
for actuarial losses from the revaluation of provisions for termination beneﬁts in the negative amount of EUR -733,853 (the
amount of revaluation is reduced for deferred taxes in the amount of EUR 77,034). Changes during the ﬁnancial year are
disclosed in the statement of comprehensive income.
Foreign currency translation differences
Foreign currency translation losses at the Group level and for the controlling interest amounted to EUR -7,229,453 as at 31
December 2020 and were up by EUR 560,998 relative to 2019 owing to the effect of foreign exchange rate differences
arising from the recalculation of equity items in the ﬁnancial statements of subsidiaries abroad from local currencies into the
reporting currency.
Retained earnings and net profit or loss for the current year
Changes in connection with the Group and Company during the ﬁnancial year are disclosed in the statement of
comprehensive income and in the statement of changes in equity.
INTEREUROPA / FINANCIAL REPORT / 2020
172
Note 25: Non-controlling interests in equity
(in EUR)
Country
in which
company is
registered
Non-controlling interest
Equity pertaining to non-
controlling interest
Net profit or loss pertaining
to non-controlling interest
31 December
2020
31 December
2019
31 December
2020
31 December
2020
31 December
2019
31 December
2020
Interzav d. o. o., Koper Slovenia 28.72% 28.72% 16,001 19,456 7,017 10,472
Intereuropa, logističke
usluge, d. o. o., Zagreb
Croatia 0.04% 0.04% 17,097 16,716 659 398
Intereuropa sajam,
d. o. o., Zagreb
Croatia 49.00% 49.00% 358,619 326,750 36,893 42,309
Intereuropa Skopje,
d. o. o., Skopje
North
Macedonia
0.44% 0.44% 5,101 5,610 -310 -1,125
Intereuropa RTC, d. d.,
Sarajevo
Bosnia and
Herzegovina
4.23% 4.23% 496,103 517,798 -21,427 21,528
AD Intereuropa
logističke usluge,
Belgrade
Serbia 26.38% 26.38% 1,557,486 1,787,617 -226,151 -140,433
TOV TEK ZTS, Uzhhorod Ukraine 10.07% 10.07% -14,726 334 -7,593 11,239
Intereuropa Kosova
L.L.C., Prishtina
Kosovo 10.00% 10.00% 72,299 65,464 6,835 10,362
Zetatrans A.D.,
Podgorica
Montenegro 30.73% 30.73% 5,018,601 4,895,310 152,477 344,131
Total 7,526,581 7,635,055 -51,600 298,881
04 / FINANCIAL REPORT
INTEREUROPA / FINANCIAL REPORT / 2020
173
SUMMARY OF ACCOUNTING INFORMATION FOR NON-CONTROLLING INTERESTS
Non-controlling interest 28.72% 0.04% 49.00%
Company name
Interzav, d. o. o.,
Koper
Intereuropa, logističke
usluge, d. o. o., Zagreb
Intereuropa sajam, d. o. o.,
Zagreb
(in EUR) 2020 2019 2020 2019 2020 2019
Non-current assets 0 0 15,454 16,176 235,323 294,515
Current assets 24,604 25,158 4,340 3,452 190,382 89,097
Equity and non-current liabilities 17,798 19,456 17,919 17,786 389,109 358,806
Current liabilities 6,807 5,703 1,874 1,841 36,596 24,806
Operating revenues 52,013 54,819 10,045 10,264 337,377 325,790
Proﬁt or loss from ordinary operations 8,804 12,966 751 0 41,640 51,732
Net proﬁt or loss for the accounting
period
7,017 10,472 659 398 36,893 42,309
Non-controlling interest 0.44% 4.23% 26.38%
Company name
Intereuropa Skopje, d. o. o.,
Skopje
Intereuropa RTC, d. d.,
Sarajevo
AD Intereuropa logističke
usluge, Belgrade
(in EUR) 2020 2019 2020 2019 2020 2019
Non-current assets 4,123 4,177 496,292 508,353 2,418,359 2,430,831
Current assets 3,768 3,764 89,867 99,633 321,867 279,309
Equity and non-current liabilities 5,004 5,451 522,295 487,928 2,028,593 2,009,381
Current liabilities 2,692 2,173 63,864 60,318 711,633 700,758
Operating revenues 11,997 11,000 315,276 346,582 1,592,128 1,503,686
Proﬁt or loss from ordinary operations -132 -1,097 -21,392 25,524 -224,569 -140,795
Net proﬁt or loss for the accounting
period
-310 -1,126 -21,427 21,528 -226,151 -140,415
Non-controlling interest 10.07% 10.00% 30.73%
Company name TOV TEK ZTS, Uzhhorod
Intereuropa Kosova L.L.C.,
Prishtina
Zetatrans A.D., Podgorica
(in EUR) 2020 2019 2020 2019 2020 2019
Non-current assets 39,374 61,274 54,403 80,777 3,478,472 3,732,662
Current assets 35,279 56,465 122,816 124,144 2,237,182 1,866,948
Equity and non-current liabilities -13,284 4,767 91,714 117,433 5,340,269 4,547,428
Current liabilities 87,937 112,973 85,505 87,487 373,752 357,183
Operating revenues 402,114 376,328 384,825 396,521 1,584,436 2,034,972
Proﬁt or loss from ordinary operations -8,040 2,392 8,138 11,973 172,643 379,772
Net proﬁt or loss for the accounting
period
-7,593 11,239 6,835 10,362 152,465 344,103
INTEREUROPA / FINANCIAL REPORT / 2020
174
Note 26: Provisions
(in EUR)
Intereuropa Group Intereuropa, d. d.
31 December
2020
31 December
2019
31 December
2020
31 December
2019
Provisions for termination beneﬁts upon retirement and
employee anniversary bonuses
2,483,386 2,259,900 1,922,290 1,788,980
Provisions for lawsuits 184,385 436,799 2,640 182,640
Other provisions 125,751 0 0 0
Total 2,793,522 2,696,699 1,924,930 1,971,620
CHANGES IN PROVISIONS IN 2020
Intereuropa Group
(in EUR)
Balance
as at
1 January
2020
Drawn
down
(used) Reversed
Additional
creation of
provisions
charged to
expenses
Additional
creation of
provisions
charged to
equity
Exchange
rate
differences
Balance at
31 December
2020
Provisions for termination
beneﬁts upon retirement and
employee anniversary bonuses
2,259,900 -155,742 -6,007 163,317 229,580 -7,662 2,483,386
Provisions for lawsuits 436,799 -89,610 -199,613 38,308 0 -1,499 184,385
Other provisions 0 0 0 125,559 0 192 125,751
Total 2,696,699 -245,352 -205,620 327,184 229,580 -8,969 2,793,522
Intereuropa, d. d.
(in EUR)
Balance
as at
1 January
2020
Drawn
down
(used) Reversed
Additional creation
of provisions
charged to
expenses
Additional creation
of provisions
charged to equity
Balance at
31 December
2020
Provisions for termination
beneﬁts upon retirement and
employee anniversary bonuses
1,788,980 -117,569 0 105,814 145,065 1,922,290
Provisions for lawsuits 182,640 -80,599 -99,401 0 0 2,640
Total 1,971,620 -198,168 -99,401 105,814 145,065 1,924,930
CHANGES IN PROVISIONS IN 2019
Intereuropa Group
(in EUR)
Balance
as at
1 January
2019
Drawn
down
(used) Reversed
Additional
creation of
provisions
charged to
expenses
Additional
creation of
provisions
charged to
equity
Exchange
rate
differences
Balance at
31 December
2019
Provisions for termination
beneﬁts upon retirement and
employee anniversary bonuses
1,364,627 -145,099 -6,013 316,330 730,931 -876 2,259,900
Provisions for lawsuits 982,147 -239,688 -692,303 387,814 0 -1,171 436,799
Total 2,346,774 -384,787 -698,316 704,144 730,931 -2,047 2,696,699
Intereuropa, d. d.
(in EUR)
Balance
as at
1 January
2019
Drawn
down
(used) Reversed
Additional creation
of provisions
charged to
expenses
Additional creation
of provisions
charged to equity
Balance at
31 December
2019
Provisions for termination
beneﬁts upon retirement and
employee anniversary bonuses
1,054,697 -106,817 0 218,101 622,999 1,788,980
Provisions for lawsuits 12,707 -11,019 -322 181,274 0 182,640
Total 1,067,404 -117,836 -322 399,375 622,999 1,971,620
04 / FINANCIAL REPORT
INTEREUROPA / FINANCIAL REPORT / 2020
175
The calculation of provisions for termination beneﬁts upon retirement and employee anniversary bonuses within the
Group for 2020 and 2019 is based on an actuarial calculation, in which the following assumptions were taken into account:
• the method for calculating termination beneﬁts in speciﬁc countries;
• growth in average wages in speciﬁc countries;
• age-based employee turnover, prerequisites for retirement in accordance with the minimum conditions for exercising
the right to an old-age pension;
• the mortality rate based on published mortality tables in individual countries;
• retirement in accordance with the legal bases of individual countries; and
• the application of the following annual discount rates: 0.3475% in Slovenia (2019: 0.1%), 0.666% in Croatia (2019: 0.5%),
2.84% in Bosnia and Herzegovina (2019: 3%), 3% in Serbia (2019: 3.6%), 2.5% in North Macedonia (2019: 2.25%), and 2.55%
in Montenegro (2019: 2.55%).
The calculation of provisions for termination beneﬁts upon retirement and employee anniversary bonuses at the Company
for 2020 and 2019 is based on an actuarial calculation, in which the following assumptions were taken into account:
• wage growth in the Republic of Slovenia in the amount of 3.5% and wage growth of 3% at the Company (2019: wage
growth in the Republic of Slovenia in the amount of 5.5% for 2020 and 2021, and wage growth of 2% (amount of inﬂation)
and real growth of 1% from 2020 on);
• an employer contribution rate of 16.1% (for payments exceeding the amounts deﬁned by the Decree on the Tax
Treatment of Reimbursement of Work-Related Expenses and Other Employment Earnings);
• growth in the amounts set out in the aforementioned decree of 0.25%.
• employee turnover:
a. 6% in the age group of up to 40 years;
b. 3.5% in the age group of 41 to 50 years;
c. 0% in the age group of 51 years or more;
• mortality rate (2007 for Slovenia); selection factor for the active population of 75%;
• disability rate; and
• retirement in accordance with the model on the basis of the Pension and Disability Insurance Act;
• annual discount rate of 0.3475% (2019: 0.1%).
CHANGES IN PROVISIONS FOR TERMINATION BENEFITS AND EMPLOYEE ANNIVERSARY BONUSES IN 2020
Intereuropa Group
(in EUR)
Balance as at
1 January
2020
Interest
expense Payments
Increase
during
current year
Actuarial
gains or
losses
Exchange
rate
differences
Total as at
31 December
2020
Employee anniversary bonuses 422,483 1,528 -42,160 25,970 -16,961 -32 390,828
Termination beneﬁts upon
retirement
1,837,417 5,807 -110,367 146,803 230,392 -17,494 2,092,558
Total 2,259,900 7,335 -152,527 172,773 213,431 -17,526 2,483,386
Intereuropa, d. d.
(in EUR)
Balance as
at 1 January
2020
Interest
expense Payments
Increase
during
current year
Actuarial
gains or
losses
Total as at
31 December
2020
Employee anniversary bonuses 320,888 321 -34,458 19,948 -15,985 290,714
Termination beneﬁts upon retirement 1,468,092 1,468 -83,111 100,062 145,065 1,631,576
Total 1,788,980 1,789 -117,569 120,010 129,080 1,922,290
INTEREUROPA / FINANCIAL REPORT / 2020
176
CHANGES IN PROVISIONS FOR TERMINATION BENEFITS AND EMPLOYEE ANNIVERSARY BONUSES IN 2019
Intereuropa Group
(in EUR)
Balance as at
1 January
2019
Interest
expense Payments
Increase
during
current year
Actuarial
gains or
losses
Exchange
rate
differences
Total as at
31 December
2019
Employee anniversary bonuses 297,985 5,015 -55,172 44,292 130,362 0 422,482
Termination beneﬁts upon
retirement
1,066,642 18,284 -91,310 101,789 742,889 -876 1,837,418
Total 1,364,627 23,299 -146,482 146,081 873,251 -876 2,259,900
Intereuropa, d. d.
(in EUR)
Balance as
at 1 January
2019
Interest
expense Payments
Increase
during
current year
Actuarial
gains or
losses
Total as at
31 December
2019
Employee anniversary bonuses 223,489 2,783 -46,636 15,957 125,296 320,889
Termination beneﬁts upon retirement 831,208 13,358 -60,181 60,707 622,999 1,468,091
Total 1,054,697 16,141 -106,817 76,664 748,295 1,788,980
SENSITIVITY ANALYSIS FOR 2020
(in EUR)
Intereuropa Group Intereuropa, d. d.
Discount rate Turnover Discount rate Turnover
Change in % -0.5 +0.5 -1.0 +1.0 -0.5 +0.5 -1.0 +1.0
Effect on balance of provisions 2,602,964 -2,372,522 2,565,573 -2,264,919 2,012,089 -1,838,895 1,963,348 -1,758,635
SENSITIVITY ANALYSIS FOR 2019
(in EUR)
Intereuropa Group Intereuropa, d. d.
Discount rate Turnover Discount rate Turnover
Change in % -0.5 +0.5 -0.5 +0.5 -0.5 +0.5 -0.5 +0.5
Effect on balance of provisions 53,213 -57,049 190,161 -178,476 16,007 -77,126 83,823 -78,735
Note 27: Financial liabilities
(in EUR)
Intereuropa Group Intereuropa, d. d.
31 December
2020
31 December
2019
31 December
2020
31 December
2019
Loans received from others 52,887,330 0 52,156,428 0
Lease liabilities 1,311,839 2,719,484 485,926 870,375
Total non-current ﬁnancial liabilities 54,199,169 2,719,484 52,642,354 870,375
Loans from Group companies 0 0 3,100,000 4,100,000
Loans received from others 2,666,878 57,141,194 2,597,984 56,845,360
Lease liabilities 1,327,184 1,399,549 346,707 559,667
Liabilities for dividends and other shares in proﬁt 425,086 437,514 0 0
Total current ﬁnancial liabilities 4,419,148 58,978,257 6,044,691 61,505,027
The Company had an approved and undrawn revolving loan in the amount of EUR 4,000,000 as at 31 December 2020.
The Group had an approved and undrawn overdraft limit on its bank accounts in the amount of EUR 330 thousand.
The Group and Company had no overdue unpaid liabilities under loan agreements as at the reporting date.
04 / FINANCIAL REPORT
INTEREUROPA / FINANCIAL REPORT / 2020
177
On 31 January 2020, the Company successfully completed the reﬁnancing of several loans arranged under the ﬁnancial
restructuring agreement concluded in 2012. The Company and a syndicate of banks, including Nova Ljubljanska banka,
d. d. acting as the organiser and agent, concluded a long-term loan agreement in the amount of EUR 54,850,000. The
new loan was concluded in two tranches, one with a maturity of seven years and the other with a maturity of four years.
Pošta Slovenije, d. o. o. also contributed to the successful implementation of reﬁnancing by issuing a loan guarantee in the
amount of 80% of the loan.
An annex to the loan agreement entered into force on 27 May 2020. Under that annex, the Company and a syndicate
of banks agreed on the deferral of payments in accordance with the Emergency Deferral of Borrowers’ Liabilities Act
(hereinafter: the ZIUOPOK; Ofﬁcial Gazette of the Republic of Slovenia No. 36-683/2020) as preparation for the expected
deterioration in the Company’s liquidity position due to the outbreak of the coronavirus crisis. A one-year deferral of the
payment of principal and interest, from 1 April 2020 to 31 March 2021 was agreed.
CHANGES IN FINANCIAL LIABILITIES IN 2020
Intereuropa Group
(in EUR)
Long-
term loans
(excluding
leases)
Long-term
leases
Short-
term loans
(excluding
leases)
Liabilities for
dividends and
other shares in
profit
Total financial
liabilities
Balance as at 1 January 2020 56,860,682 4,119,033 280,512 437,514 61,697,741
Cash ﬂow -1,215,227 -1,420,804 -277,059 -12,428 -2,925,518
Amendments to agreements 0 -3,004 0 0 -3,004
Correction (costs) 0 -356,117 0 0 -356,117
New leases 0 236,268 0 0 236,268
Other -95,588 76,962 0 0 -18,626
Exchange rate differences 4,341 -13,315 -3,453 0 -12,427
Balance as at 31 December 2020 55,554,208 2,639,023 0 425,086 58,618,317
Intereuropa, d. d.
(in EUR)
Long-term loans
(excluding leases) Long-term leases
Short-term loans
(excluding leases)
Total financial
liabilities
Balance as at 1 January 2020 56,845,360 1,430,042 4,100,000 62,375,402
Cash ﬂow -1,995,360 -451,581 -1,000,000 -3,446,941
Amendments to agreements 0 -18,704 0 -18,704
Correction (costs) 0 -167,520 0 -167,520
New leases 0 13,050 0 13,050
Other -95,588 27,346 0 -68,242
Balance as at 31 December 2020 54,754,412 832,633 3,100,000 58,687,045
Long-term loans and long-term leases in the table of changes in ﬁnancial liabilities comprise long-term loans and leases,
as well as the short-term portion of long-term loans and leases, which are disclosed in the statement of ﬁnancial position
in current ﬁnancial liabilities.
INTEREUROPA / FINANCIAL REPORT / 2020
178
CHANGES IN FINANCIAL LIABILITIES IN 2019
Intereuropa Group
(in EUR)
Long-
term loans
(excluding
leases)
Long-term
leases
Short-
term loans
(excluding
leases)
Liabilities for
dividends and
other shares in
profit
Total financial
liabilities
Balance as at 1 January 2019 64,263,793 3,827,019 5,798,027 415,790 74,304,629
Cash ﬂow -7,400,011 -1,222,005 -5,521,005 -231,141 -14,374,162
Increases 0 0 0 252,865 252,865
New leases 0 1,394,986 0 0 1,394,986
Other -3,100 119,033 0 0 115,933
Exchange rate differences 0 0 3,490 0 3,490
Balance as at 31 December 2019 56,860,682 4,119,033 280,512 437,514 61,697,741
Intereuropa, d. d.
(in EUR)
Long-term loans
(excluding leases) Long-term leases
Short-term loans
(excluding leases)
Total financial
liabilities
Balance as at 1 January 2019 64,187,099 1,620,284 7,590,000 73,397,383
Cash ﬂow -7,338,639 -460,452 -3,490,000 -11,289,091
Reclassiﬁcation to disposal groups 0 -37,042 0 -37,042
New leases 0 264,146 0 264,146
Other -3,100 43,106 0 40,006
Balance as at 31 December 2019 56,845,360 1,430,042 4,100,000 62,375,402
The Group repaid ﬁnancial liabilities from loans in the amount of EUR 2,290,861 in 2020, while the Company repaid ﬁnancial
liabilities from loans in the amount of EUR 1,998,460.
LOANS WITH RESPECT TO COLLATERAL
(in EUR)
Intereuropa Group Intereuropa, d. d.
31 December 2020 31 December 2019 31 December 2020 31 December 2019
Secured
Liens on real estate and securities 54,754,412 56,845,360 54,754,412 56,845,360
Bills of exchange 730,902 260,986 0 0
Unsecured 68,894 34,848 3,100,000 4,100,000
Total 55,554,208 57,141,194 57,854,412 60,945,360
LOANS TO OTHERS BY MATURITY
(in EUR)
Intereuropa Group Intereuropa, d. d.
31 December 2020 31 December 2019 31 December 2020 31 December 2019
Maturity of 0 to 1 years 2,662,699 57,140,683 5,697,984 60,945,360
Maturity of 1 to 2 years 5,189,360 511 4,793,750 0
Maturity of 2 to 3 years 5,564,471 0 5,225,000 0
Maturity of 3 to 4 years 25,225,000 0 25,225,000 0
Maturity of 4 to 5 years 5,225,000 0 5,225,000 0
Maturity of more than 5 years 11,687,678 0 11,687,678 0
Total 55,554,208 57,141,194 57,854,412 60,945,360
04 / FINANCIAL REPORT
INTEREUROPA / FINANCIAL REPORT / 2020
179
Note 28: Operating liabilities
(in EUR)
Intereuropa Group Intereuropa, d. d.
31 December
2020
31 December
2019
31 December
2020
31 December
2019
Non-current trade payables 115,809 139,339 115,809 139,339
Other non-current operating liabilities 819,355 887,162 762,666 870,305
Total non-current operating liabilities 935,164 1,026,501 878,475 1,009,644
Current operating liabilities to Group companies 0 0 374,048 373,722
Current trade payables (excluding the Group) 15,680,960 19,259,199 9,193,447 12,973,942
Other current operating liabilities 5,723,390 4,533,752 4,369,251 3,259,322
Total current operating liabilities 21,404,350 23,792,951 13,936,746 16,606,986
The Group’s contractual obligation for employee participation in proﬁts, which will be settled one year after the
approval of the annual report for 2020, amounted to EUR 602,561 and comprised expenses for employee participation
in proﬁts in the amount of EUR 489,839 (including social security costs) and expenses for the participation of hired
labour in proﬁts in the amount of EUR 112,722. The latter amount was recognised in the item ‘costs of hired labour and
student work’. For the Company, that obligation amounted to EUR 592,398 and comprised expenses for employee
participation in proﬁts in the amount of EUR 479,676 (including social security costs) and expenses for the participation
of hired labour in proﬁts in the amount of EUR 112,722. The latter amount was recognised in the item ‘costs of hired
labour and student work’ (Notes 3 and 4).
Of the Group’s total current operating liabilities as at 31 December 2020, EUR 2,358,710 related to liabilities for costs for
which suppliers’ invoices were not yet received (EUR 2,262,849 at the end of the previous year), while the Company
disclosed such liabilities in the amount of EUR 1,678,333 (EUR 1,657,452 at the end of 2019).
Other current operating liabilities comprised liabilities to employees for wages and wage compensation, liabilities for
contributions and taxes, and other liabilities.
Only liabilities for customs duties amounting to EUR 100,099 on the ﬁnal day of 2020 (EUR 2,862,442 on the ﬁnal day of
2019) were secured by a bank guarantee. The Group and Company do not issue collateral instruments to secure payments
to other suppliers.
INTEREUROPA / FINANCIAL REPORT / 2020
180
Note 29: Contingent liabilities
(in EUR)
Intereuropa Group Intereuropa, d. d.
31 December
2020
31 December
2019
31 December
2020
31 December
2019
Contingent liabilities from bank guarantees and
guarantees given to Group companies
0 0 799,796 155,857
Contingent liabilities from bank guarantees and
guarantees given to others
17,710,888 17,299,390 10,199,763 9,555,000
Contingent liabilities from lawsuits 602,032 303,043 7,000 7,000
Other contingent liabilities 170,706 170,706 65,706 65,706
Total 18,483,626 17,773,139 11,072,265 9,783,563
The Group and Company disclose as contingent liabilities any liabilities that are not disclosed in the statement of
ﬁnancial position and for which they assess that an outﬂow of economic beneﬁts will not be likely in the settlement
of those liabilities.
The guarantees and warranties for Group companies that the Company discloses primarily comprise guarantees
for raised loans and the customs guarantees of subsidiaries. Other guarantees and warranties mainly comprise
contingent liabilities arising from guarantees for potential customs liabilities that might arise from transit procedures,
the veriﬁcation of origin, and various analyses and controls of goods.
With regard to contingent liabilities arising from lawsuits in the amount of EUR 602,032 at the Group level and EUR
7,000 at the Company, there is a less than 50% probability that the court will rule in favour of the plaintiff’s claim (which
would result in the outﬂow of resources embodying economic beneﬁts).
04 / FINANCIAL REPORT
INTEREUROPA / FINANCIAL REPORT / 2020
181
Note 30: Fair value
FAIR VALUE OF FINANCIAL INSTRUMENTS
Intereuropa Group
(in EUR)
31 December 2020 31 December 2019
Carrying
amount
Fair value
Carrying
amount
Fair value
Fair value of assets
Financial assets measured at fair value through other
comprehensive income
2,189 2,189 2,625 2,625
Financial assets measured at fair value through proﬁt
or loss
27,159 27,159 119,421 119,421
Loans and deposits 2,638,064 2,638,064 1,062,653 1,062,653
Operating receivables (excluding receivables from the
government and employees, and advances paid)
28,914,452 28,914,452 31,701,504 31,701,504
Cash and cash equivalents 11,609,486 11,609,486 6,283,037 6,283,037
Total 43,191,350 43,191,350 39,169,240 39,169,240
Fair value of liabilities
Loans and leases
at ﬁxed interest rates 0 0 19,509 19,509
at variable interest rates 55,554,208 55,554,208 59,933,496 59,933,496
Lease liabilities 2,639,023 2,639,023 4,119,033 4,119,033
Liabilities for dividends and other shares in proﬁt 425,086 425,086 437,514 437,514
Operating liabilities (excluding liabilities to the
government and employees, and advances received)
16,476,693 16,476,693 24,819,452 24,819,452
Total 75,095,010 75,095,010 89,329,004 89,329,004
Intereuropa, d. d.
(in EUR)
31 December 2020 31 December 2019
Carrying
amount
Fair value
Carrying
amount
Fair value
Fair value of assets
Financial assets measured at fair value through proﬁt
or loss
27,159 27,159 27,159 27,159
Loans and deposits 2,198,062 2,198,062 2,325,951 2,325,951
Operating receivables (excluding receivables from the
government and employees, and advances paid)
21,140,817 21,140,817 22,701,102 22,701,102
Cash and cash equivalents 2,374,180 2,374,180 2,756,729 2,756,729
Total 25,740,218 25,740,218 27,810,941 27,810,941
Fair value of liabilities
Loans and leases
at ﬁxed interest rates 3,100,000 3,100,000 4,100,000 4,100,000
at variable interest rates 54,754,412 54,754,412 56,845,360 56,845,360
Lease liabilities 832,633 832,633 1,430,042 1,430,042
Operating liabilities (excluding liabilities to the
government and employees, and advances received)
10,260,769 10,260,769 17,616,630 17,616,630
Total 68,947,814 68,947,814 79,992,032 79,992,032
The Group and Company assume that the carrying amount of receivables and liabilities with a maturity of less than one year
is a proper reﬂection of their fair value.
INTEREUROPA / FINANCIAL REPORT / 2020
182
Fair value hierarchy
The table illustrates the classiﬁcation of non-ﬁnancial and ﬁnancial instruments with respect to the calculation of their fair
value. The Company classiﬁes those instruments to the following three levels:
• level 1 includes the unadjusted price quoted on an active market on the date of measurement;
• level 2 includes inputs other than the quoted prices included in level 1 that can be directly or indirectly observed for
assets or liabilities; and
• level 3 includes unobservable inputs for an asset or liability.
FAIR VALUE HIERARCHY FOR ASSETS MEASURED AT FAIR VALUE
Intereuropa Group
(in EUR)
31 December 2020 31 December 2019
Level 1 Level 3 Total Level 1 Level 3 Total
Fair value of assets
Financial assets measured at fair value through other
comprehensive income
2.189 0 2,189 2,625 0 2,625
Financial assets measured at fair value through proﬁt
or loss
0 27,159 27,159 0 119,421 119,421
Loans and deposits 0 2,638,064 2,638,064 0 1,062,653 1,062,653
Operating receivables (excluding receivables from
the government and employees, and advances
paid)
0 28,914,452 28,914,452 0 31,701,504 31,701,504
Cash and cash equivalents 0 11,609,486 11,609,486 0 6,283,037 6,283,037
Total 2.189 43,189,161 43,191,350 2,625 39,166,615 39,169,240
Fair value of liabilities
Loans 0 55,554,208 55,554,208 0 59,953,005 59,953,005
Lease liabilities 0 2,639,023 2,639,023 0 4,119,033 4,119,033
Liabilities for dividends and other shares in proﬁt 0 425,086 425,086 0 437,514 437,514
Operating liabilities (excluding liabilities to the
government and employees, and advances
received)
0 16,476,693 16,476,693 0 24,819,452 24,819,452
Total 0 75,095,010 75,095,010 0 89,329,004 89,329,004
Intereuropa, d. d.
(in EUR)
31 December 2020 31 December 2019
Level 3 Total Level 3 Total
Fair value of assets
Financial assets measured at fair value through proﬁt
or loss
27,159 27,159 27,159 27,159
Loans and deposits 2,198,062 2,198,062 2,325,951 2,325,951
Operating receivables (excluding receivables from
the government and employees, and advances
paid)
21,140,817 21,140,817 22,701,102 22,701,102
Cash and cash equivalents 2,374,180 2,374,180 2,756,729 2,756,729
Total 25,740,218 25,740,218 27,810,941 27,810,941
Fair value of liabilities
Loans 57,854,412 57,854,412 60,945,360 60,945,360
Lease liabilities 832,633 832,633 1,430,042 1,430,042
Operating liabilities (excluding liabilities to the
government and employees, and advances
received)
10,260,769 10,260,769 17,616,630 17,616,630
Total 68,947,814 68,947,814 79,992,032 79,992,032
For other ﬁnancial instruments for which value is disclosed, that value reﬂects level three.
04 / FINANCIAL REPORT
INTEREUROPA / FINANCIAL REPORT / 2020
183
Note 31: Financial risks
The ﬁnancial risks to which the Group and Company are exposed include:
1. liquidity risk,
2. currency risk,
3. credit risk, and
4. interest-rate risk
Liquidity risk
The Group and Company manage liquidity risk through the active management of cash, which includes:
• the monitoring and planning of cash ﬂows;
• egular collection activities and daily contact with major customers; and
• the option of using short-term credit lines via banks.
In addition, subsidiaries may raise short-term borrowings within the Group.
The table regarding liquidity risk illustrates estimated undiscounted cash ﬂows, including future interest.
Intereuropa Group 31 December 2020
(in EUR)
Carrying
amount
Contrac-
tual cash
flows
6
months
or less
6 to 12
months
1 to 2
years
2 to 5
years
More
than 5
years
Loans from banks and others 55,554,208 58,104,234 1,524,058 2,086,851 5,702,250 36,885,840 11,905,235
Operating lease liabilities 2,240,529 2,474,370 859,086 424,232 417,593 552,466 0
Finance lease liabilities 398,494 406,027 289,397 116,630 0 0 0
Liabilities for dividends and other
shares in proﬁt
425,086 425,086 5,142 419,945 0 0 0
Current trade payables 15,727,034 15,901,362 15,646,379 24,647 23,735 69,363 22,712
of which trade payables for short-term
leases
10,391 10,391 10,391 0 0 0 0
Other operating liabilities 749,659 749,659 745,240 12,445 4,419 0 0
Total 75,095,010 78,060,738 19,069,302 3,084,750 6,147,997 37,507,669 11,927,947
Intereuropa, d. d. 31 December 2020
(in EUR)
Carrying
amount
Contrac-
tual cash
flows
6
months
or less
6 to 12
months
1 to 2
years
2 to 5
years
More
than 5
years
Loans from Group companies 3,100,000 4,120,997 1,811,836 1,305,401 0 0 0
Loans from banks and others 54,754,412 57,304,439 1,524,058 2,022,137 5,306,640 36,546,369 11,905,235
Operating lease liabilities 832,633 1,246,617 200,900 153,192 241,771 278,523 0
Operating liabilities to Group
companies
374,048 406,707 374,048 0 0 0 0
Trade payables 9,309,256 9,309,256 9,168,800 24,647 23,735 69,363 22,712
of which trade payables for short-term
leases
8,310 8,216 8,310 0 0 0 0
Other operating liabilities 577,465 577,465 577,465 0 0 0 0
Total 68,947,814 72,965,481 13,657,107 3,505,377 5,572,146 36,894,255 11,927,947
INTEREUROPA / FINANCIAL REPORT / 2020
184
Intereuropa Group 31 December 2019
(in EUR)
Carrying
amount
Contrac-
tual cash
flows
6
months
or less
6 to 12
months
1 to 2
years
2 to 5
years
More
than 5
years
Loans from banks and others 57,141,194 57,280,185 57,003,095 271,960 5,130 0 0
Operating lease liabilities 3,622,072 4,264,073 2,013,168 473,650 656,573 1,120,681 0
Finance lease liabilities 496,961 518,505 55,691 55,691 407,124 0 0
Liabilities for dividends and other
shares in proﬁt
437,514 437,514 14,416 0 0 0 0
Trade payables 19,398,538 20,118,427 19,856,327 68,761 23,735 46,856 68,749
of which trade payables for short-term
leases
28,221 28,221 28,221 0 0 0 0
Other operating liabilities 1,344,173 1,344,173 473,868 0 870,305 0 0
Total 82,440,452 83,962,877 79,416,565 870,062 1,962,867 1,167,537 68,749
Intereuropa, d. d. 31 December 2019
(in EUR)
Carrying
amount
Contrac-
tual cash
flows
6
months
or less
6 to 12
months
1 to 2
years
2 to 5
years
More
than 5
years
Loans from Group companies 4,100,000 4,111,922 2,807,550 1,304,372 0 0 0
Loans from banks and others 56,845,360 56,972,105 5,697,211 0 0 0 0
Operating lease liabilities 1,430,042 1,503,272 297,408 237,167 361,056 607,641 0
Operating liabilities to Group
companies
373,722 373,722 373,722 0 0 0 0
Trade payables 13,113,281 13,113,281 12,905,181 68,761 23,735 46,856 68,749
of which trade payables for short-term
leases
151,597 151,597 151,597 0 0 0 0
Other operating liabilities 1,287,784 1,287,784 417,479 0 870,305 0 0
Total 77,150,189 77,362,086 22,498,551 1,610,300 1,255,096 654,497 68,749
On 31 January 2020, the Company successfully completed the reﬁnancing of several loans arranged under the ﬁnancial
restructuring agreement concluded in 2012. The Company and a syndicate of banks, including Nova Ljubljanska banka, d.
d. acting as the organiser and agent, concluded a long-term loan agreement in the amount of EUR 54,850,000. The new
loan was concluded in two tranches, one with a maturity of seven years and the other with a maturity of four years.
The Group and Company estimate a time span of between six months and ﬁve years for contingent liabilities from bank
guarantees and guarantees issued in the total amount of EUR 17,710,888 and EUR 10,199,763, respectively.
04 / FINANCIAL REPORT
INTEREUROPA / FINANCIAL REPORT / 2020
185
Currency risk
Intereuropa Group
(in EUR)
31 December 2020
EUR USD HRK RSD Other Total
Operating receivables 23,506,925 130,660 3,555,822 629,946 1,091,099 28,914,452
Long-term loans granted and deposits 0 0 39,279 0 619 39,898
Short-term loans granted and deposits 2,597,400 0 0 0 766 2,598,166
Long-term loans received -52,155,429 0 0 -731,901 0 -52,887,330
Short-term loans received -2,597,984 0 0 -68,894 0 -2,666,878
Liabilities for dividends and other shares in
proﬁt
-419,944 0 0 0 -5,142 -425,086
Lease liabilities -2,126,980 0 0 -234,418 -277,625 -2,639,023
Operating liabilities -11,356,554 -368,940 -3,247,812 -563,076 -940,311 -16,476,693
Exposure disclosed in the statement of
ﬁnancial position
-42,552,566 -238,280 347,289 -968,343 -130,594 -43,542,494
Intereuropa, d. d.
(in EUR)
31 December 2020
EUR USD HRK Other Total
Operating receivables from Group companies 859,592 0 0 0 859,592
Operating receivables 20,227,023 56,302 -1,523 -577 20,281,225
Short-term loans to Group companies 2,198,062 0 0 0 2,198,062
Long-term loans received -52,156,428 0 0 0 -52,156,428
Short-term loans from Group companies -3,100,000 0 0 0 -3,100,000
Short-term loans received -2,597,984 0 0 0 -2,597,984
Lease liabilities -832,633 0 0 0 -832,633
Operating liabilities within the Group -374,057 0 0 9 -374,048
Other operating liabilities -9,595,834 -276,295 368 -14,960 -9,886,721
Exposure disclosed in the statement of
ﬁnancial position
-45,372,259 -219,993 -1,155 -15,528 -45,608,935
Intereuropa Group
(in EUR)
31 December 2019
EUR USD HRK RSD Other Total
Operating receivables 23,611,512 348,431 3,854,729 706,432 1,931,402 30,452,506
Long-term loans granted and deposits 0 43,944 0 0 8,600 52,544
Short-term loans granted and deposits 1,008,998 0 0 0 1,111 1,010,109
Short-term loans received -56,865,375 0 0 -260,986 -14,833 -57,141,194
Liabilities for dividends and other shares in
proﬁt
-423,175 0 0 0 -14,339 -437,514
Lease liabilities -3,611,461 0 0 -182,086 -325,486 -4,119,033
Operating liabilities -15,443,514 -361,382 -3,064,000 -696,000 -1,168,618 -20,733,514
Exposure disclosed in the statement of
ﬁnancial position
-51,723,015 30,993 790,729 -432,640 417,837 -50,916,096
INTEREUROPA / FINANCIAL REPORT / 2020
186
Intereuropa, d. d.
(in EUR)
31 December 2019
EUR USD Ostalo Skupaj
Operating receivables from Group companies 908,516 0 0 908,516
Operating receivables 21,679,677 107,086 5,823 21,792,586
Short-term loans to Group companies 2,315,956 0 0 2,315,956
Short-term loans granted and deposits 9,995 0 0 9,995
Short-term loans from Group companies -4,100,000 0 0 -4,100,000
Short-term loans received -56,845,360 0 0 -56,845,360
Lease liabilities -1,430,042 0 0 -1,430,042
Operating liabilities within the Group -373,722 0 0 -373,722
Operating liabilities -14,129,000 -225,732 -46,369 -14,401,101
Exposure disclosed in the statement of ﬁnancial
position
-51,963,980 -118,646 -40,546 -52,123,172
EXCHANGE RATES IN THE GROUP
Country
Functional
currency
2020 2019
Year-end
exchange rate in
EUR*
Average
exchange rate in
EUR*
Year-end
exchange rate in
EUR*
Average
exchange rate in
EUR*
Montenegro and Kosovo EUR - - - -
Croatia HRK 7.552 7.538 7.437 7.418
North Macedonia MKD 61.559 61.674 61.419 61.585
Bosnia and Herzegovina BAM 1.956 1.956 1.956 1.956
Serbia RSD 117.530 117.710 117.380 117.700
Ukraine UAH 34.135 30.597 26.354 27.930
Albania ALL 124.380 124.120 122.410 121.970
* ECB reference exchange rates taken into account.
Credit risk
(in EUR)
Intereuropa Group Intereuropa, d. d.
31 December
2020
31 December
2019
31 December
2020
31 December
2019
Financial assets measured at fair value through
other comprehensive income
2,189 2,625 27,159 27,159
Financial assets measured at fair value through
proﬁt or loss
27,159 119,421 2,198,062 2,325,951
Loans and deposits 2,638,064 1,062,653 21,140,817 22,701,102
Operating receivables (excluding receivables from
the government and employees, and advances
paid)
28,914,452 31,701,504 2,374,180 2,756,729
Cash and cash equivalents 11,609,486 6,283,037 25,740,218 27,810,941
Total 43,191,350 39,169,240 51,480,436 55,621,882
04 / FINANCIAL REPORT
INTEREUROPA / FINANCIAL REPORT / 2020
187
EXPOSURE TO CREDIT RISK AND EXPECTED CREDIT LOSSES IN CONNECTION WITH CURRENT TRADE RECEIVABLES
(in EUR)
Intereuropa Group Intereuropa, d. d.
Gross value
as at
31 December
2020
Average
percentage of
impairment
losses
recognised
Impairment
losses as at
31 December
2020
Gross value
as at 31
December
2020
Average
percentage of
impairment
losses
recognised
Impairment
losses as at
31 December
2020
Not due 21,995,294 0.35% 76,570 17,066,618 0.28% 48,372
1 to 30 days past due 3,972,959 0.99% 39,410 2,312,371 1.16% 26,818
31 to 90 days past due 1,805,868 6.95% 117,209 897,781 2.84% 31,898
91 to 180 days past due 391,712 15.07% 59,030 83,540 10.41% 20,614
More than 180 days past due 3,984,817 100.00% 3,984,818 1,750,614 24.68% 1,750,614
Exchange rate differences 2,990 6,504 -1,140 0
Total 32,153,640 4,283,541 22,109,784 1,878,316
(in EUR)
Intereuropa Group Intereuropa, d. d.
Gross value
as at 31
December
2019
Average
percentage of
impairment
losses
recognised
Impairment
losses as at
31 December
2019
Gross value
as at 31
December
2019
Average
percentage of
impairment
losses
recognised
Impairment
losses as at
31 December
2019
Not due 20,952,672 0.27% 56,358 15,902,416 0.18% 24,901
1 to 30 days past due 5,847,827 0.56% 32,778 3,721,117 0.56% 20,891
31 to 90 days past due 2,273,332 2.46% 55,988 1,330,207 2.12% 28,264
91 to 180 days past due 700,083 15.42% 107,953 283,213 27.88% 78,948
More than 180 days past due 4,654,351 100.00% 4,654,351 2,189,034 100.00% 2,189,034
Exchange rate differences 13,000 -14,000 -1,407 0
Total 34,441,265 4,893,428 23,424,580 2,342,038
The majority of the receivables of the Group and Company are unsecured. Receivables from the largest single customer
amounted to EUR 2,442,151 at the Group level as at 31 December and accounted for 8.8% of the Group’s trade receivables.
Receivables from the largest single customer amounted to EUR 2,442,151 at the Company as at 31 December and accounted
for 8.3% of the Company’s trade receivables.
The customers of the Group and Company are dispersed in such a way that there is no major exposure to a single customer.
INTEREUROPA / FINANCIAL REPORT / 2020
188
CHANGES IN IMPAIRMENT LOSSES ON CURRENT TRADE RECEIVABLES
(in EUR)
Intereuropa Group Intereuropa, d. d.
2020 2019 2020 2019
Adjustment in impairment losses on receivables as at
1 January
4,893,428 5,206,007 2,342,038 2,623,158
Exclusion of company from the consolidated ﬁnancial
statements
0 -35,000 0 0
Written-off receivables -856,634 -458,390 -591,252 -319,355
Impairment losses on receivables (including the
reversal of impairment losses)
270,216 173,712 127,530 38,235
Exchange rate differences -23,469 7,099 0 0
Adjustment in impairment losses on receivables as at
31 December
4,283,541 4,893,428 1,878,316 2,342,038
EXPOSURE TO CREDIT RISK AND EXPECTED CREDIT LOSSES IN CONNECTION WITH OTHER CURRENT OPERATING RECEIVABLES
(in EUR)
Intereuropa Group Intereuropa, d. d.
Gross value as at
31 December 2020
Impairment losses
as at 31 December
2020
Gross value as at
31 December 2020
Impairment losses
as at 31 December
2020
Not due 1,371,101 0 990,834 0
Past due 322,663 189,371 180,547 180,547
Total 1,693,764 189,371 1,171,381 180,547
(in EUR)
Intereuropa Group Intereuropa, d. d.
Gross value as at
31 December 2019
Impairment losses
as at 31 December
2019
Gross value as at
31 December 2019
Impairment losses
as at 31 December
2019
Not due 560,000 0 1,106,633 0
Past due 427,487 294,195 180,547 180,547
Total 987,487 294,195 1,287,180 180,547
CHANGES IN IMPAIRMENT LOSSES ON OTHER CURRENT OPERATING RECEIVABLES
(in EUR)
Intereuropa Group Intereuropa, d. d.
2020 2019 2020 2019
Adjustment in impairment losses on receivables as at
1 January
294,195 1,351,795 180,547 1,172,379
Written-off receivables -2,339 -421,300 0 -421,396
Impairment losses on receivables (including the
reversal of impairment losses)
227 -636,300 0 -570,436
Difference due to different data capture -102,451 0 0 0
Exchange rate differences -261 0 0 0
Adjustment in impairment losses on receivables as at
31 December
189,371 294,195 180,547 180,547
The Group and Company assess that credit risk is appropriately managed. The most signiﬁcant risk in the aforementioned
category is the risk of payment delays and default by customers, where the Company and Group have deﬁned control
limits and mechanisms for approving exposure to credit risk for major customers.
04 / FINANCIAL REPORT
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189
INTEREST-RATE RISK
Type of variable
interest rate (IR)
(in EUR)
Intereuropa Group Intereuropa, d. d.
Loan
amount
as at 31
December
2020
Increase
in IR by 10
basis points
Increase
in IR by 25
basis points
Increase
in IR by 50
basis points
Loan
amount
as at 31
December
2020
Increase
in IR by 10
basis points
Increase
in IR by 25
basis points
Increase
in IR by 50
basis points
3-month
EURIBOR
54,850,000 0 0 0 54,850,000 0 0 -3,840
1-month
BELIBOR
799,796 -800 -1,999 -3,999 0 0 0 0
Total 55,649,796 -800 -1,999 -3,999 54,850,000 0 0 -3,840
Type of variable
interest rate (IR)
(in EUR)
Intereuropa Group Intereuropa, d. d.
Loan
amount
as at 31
December
2019
Increase
in IR by 10
basis points
Increase
in IR by 25
basis points
Increase
in IR by 50
basis points
Loan
amount
as at 31
December
2019
Increase
in IR by 10
basis points
Increase
in IR by 25
basis points
Increase
in IR by 50
basis points
3-month
EURIBOR
57,360,000 -57,000 -143,000 -287,000 56,848,460 -56,848 -142,121 -284,242
1-month
BELIBOR
261,000 0 -1,000 -1,000 0 0 0 0
Total 57,621,000 -57,000 -144,000 -288,000 56,848,460 -56,848 -142,121 -284,242
The Group and Company disclosed loans with ﬁxed interest rates.
Capital management
(in EUR)
Intereuropa Group Intereuropa, d. d.
31 December
2020
31 December
2019
31 December
2020
31 December
2019
Non-current ﬁnancial liabilities 54,199,169 2,719,484 52,642,354 870,375
Current ﬁnancial liabilities 4,419,148 58,978,257 6,044,691 61,505,027
Total ﬁnancial liabilities 58,618,317 61,697,741 58,687,045 62,375,402
Equity 124,974,366 122,357,891 89,224,850 87,227,628
Debt/equity 0.47 0.50 0.66 0.72
Current ﬁnancial assets 2,598,166 1,010,109 2,198,062 2,325,951
Cash and cash equivalents 11,609,486 6,283,199 2,374,180 2,756,729
Net ﬁnancial liabilities 44,410,665 54,404,433 54,114,803 57,292,722
Net debt/equity 0.36 0.44 0.61 0.66
Total assets 220,457,193 223,350,952 172,272,410 176,748,325
Equity to total assets 0.57 0.55 0.52 0.49
The main purpose of capital management is to ensure capital adequacy, the highest possible level of ﬁnancial stability and
long-term solvency for the needs of ﬁnancing operations, and the maximisation of value for shareholders.
INTEREUROPA / FINANCIAL REPORT / 2020
190
Note 32: Other notes
COSTS OF SERVICES OF AUDITOR
(in EUR)
Intereuropa Group Intereuropa, d. d.
2020 2019 2020 2019
Auditing of the annual report 95,786 102,635 30,280 45,214
Other audit services 4,800 40,311 4,800 10,384
Total costs of auditing services 100,586 142,946 35,080 55,598
Auditing services for 2020 were provided by the audit ﬁrm Ernst & Young, d. o. o., Ljubljana for all Group companies
subject to auditing. In addition to auditing services, the Group’s auditor also provided other permitted non-audit services
in 2020. Audit costs for the 2020 annual report were recognised taking into account the stage of completion of those
services.
Related parties
The direct controlling company of Intereuropa, d. d. is Pošta Slovenije, d. o. o., while the ultimate controlling party is the
Republic of Slovenia.
Other related parties of Intereuropa, d. d., Koper include:
• an associate or joint venture,
• the parent company’s key management personnel and their immediate family members, and
• members of the Supervisory Board and their family members.
Key management personnel at the parent company are the members of the Management Board.
INTEREUROPA GROUP COMPANIES
Composition of the Group
(in EUR)
Ownership
stake as at
31 December
2020
Ownership
stake as at
31 December
2019
Value of equity
as at
31 December
2020
Value of equity
as at
31 December
2019
Parent company
Intereuropa, d. d., Koper 89,224,850 87,227,628
Subsidiaries
Interagent, d. o. o., Koper 100.00% 100.00% 230,065 217,034
Interzav d. o. o., Koper 71.28% 71.28% 55,716 67,743
Intereuropa, logističke usluge, d. o. o., Zagreb 99.96% 99.96% 42,741,985 41,783,883
Intereuropa sajam, d. o. o., Zagreb 51.00% 51.00% 731,876 666,838
Intereuropa Skopje d. o. o., Skopje 99.56% 99.56% 1,159,382 1,274,974
Intereuropa RTC d. d., Sarajevo 95.77% 95.77% 11,728,225 12,241,081
A.D. Intereuropa logističke usluge, Belgrade 73.62% 73.62% 5,904,042 6,776,413
TOV TEK ZTS, Uzhhorod 89.93% 89.93% -146,233 3,325
Intereuropa Kosova L.L.C. 90.00% 90.00% 722,990 654,645
Zetatrans A.D., Podgorica 69.27% 69.27% 16,330,825 15,928,825
TOV Intereuropa – Kiev, Ukraine 100.00% 100.00% -415,637 -304,495
04 / FINANCIAL REPORT
INTEREUROPA / FINANCIAL REPORT / 2020
191
DISCLOSURE OF TRANSACTIONS WITH RELATED PARTIES
Intereuropa Group
(in EUR)
Associate Other* Pošta Slovenije Group
2020 2019 2020 2019 2020 2019
Revenues from the sale of services 363,817 438,338 6,240 112,031 206,372 40,023
Costs of services 2,115,394 4,475,625 5,288 11,290 378,151 12,653
31
December
2020
31
December
2019
31
December
2020
31
December
2019
31
December
2020
31
December
2019
Balance of operating receivables 35,103 74,000 0 23,836 40,320 24,741
Balance of operating liabilities 495,419 467,000 0 439 59,870 12,961
Intereuropa, d. d.
(in EUR)
Subsidiaries Associate Other*
Pošta Slovenije
Group
2020 2019 2020 2019 2020 2019 2020 2019
Revenues from the sale of
services
4,105,793 3,811,479 363,817 438,338 0 104,791 197,338 40,023
Interest income 2,025,228 2,090,776 3,725,684 4,475,625 0 5,880 357,248 12,653
Income from participating
interests
25,991 901,422 0 7,661 0 0 0 0
Costs of services 71,854 56,611 0 0 0 0 0 0
Interest expense 40,760 31,361 0 0 0 0 0 0
31
December
2020
31
December
2019
31
December
2020
31
December
2019
31
December
2020
31
December
2019
31
December
2020
31
December
2019
Non-current investments
in shares and participating
interests
44,451,959 44,823,281 39,059 39,059 0 0 0 0
Balance of operating
receivables
859,592 908,516 35,103 74,516 0 23,836 36,016 24,741
Loans granted 2,198,063 2,315,956 0 0 0 0 0 0
Balance of operating liabilities 374,048 373,722 175,149 466,586 0 439 49,162 12,961
Loans received 3,100,000 4,100,000 0 0 0 0 0 0
* Companies that are controlled or jointly controlled by an individual, or a member of their immediate family, who is in a relationship with
Intereuropa, d. d.
In the scope of the reﬁnancing of Intereuropa, d. d.’s loans, Pošta Slovenije, d. o. o. issued a guarantee at the end of
January 2020 in the amount of 80% of the reﬁnancing loan. As at 31 December 2020, the aforementioned company was
the guarantor for Intereuropa, d. d.’s loans in the amount of EUR 43,880,000. In October 2020, the Company issued blank
bills of exchange to a commercial bank in Serbia as collateral for the long-term loans of the subsidiary A.D. Intereuropa
logističke usluge, Belgrade. As at 31 December 2020, the liabilities of that subsidiary in connection with the loan amounted
to RSD 94,000,000.
None of the above listed liabilities to related parties are secured nor has any guarantee been issued or received in connection
with them. Liabilities to the associate are typically settled by remittances, assignment or mutual netting. Transactions with
related parties were executed according to market terms.
INTEREUROPA / FINANCIAL REPORT / 2020
192
Transactions with companies in which the state has a direct controlling interest
Parties related to owners include those companies in which the Republic of Slovenia and SDH together hold a direct
participating interest of at least 20%. A list of the aforementioned companies is published on SDH’s website (https://www.
sdh.si/sl-si/upravljanje-nalozb/seznam-nalozb).
Intereuropa Group
During 2020, the Group generated operating revenues in the amount of EUR 1,875,338 and operating expenses in the
amount of EUR 6,879,669, and recorded ﬁnance income in the amount of EUR 6,148 and ﬁnance costs in the amount of
EUR 141,541 with companies in which the state has a direct controlling interest.
As at 31 December 2020, the Group disclosed operating receivables in the amount of EUR 528,192, operating liabilities in
the amount of EUR 870,858, ﬁnancial liabilities in the amount of EUR 54,850,000 and contingent assets and liabilities in the
amount of EUR 9,525,000 vis-à-vis the aforementioned companies. Financial liabilities comprise a loan raised under market
terms.
Intereuropa, d. d.
During 2020, the Company generated operating revenues in the amount of EUR 1,861,491 and operating expenses in the
amount of EUR 6,851,978, and recorded ﬁnance income in the amount of EUR 2,375 and ﬁnance costs in the amount of
EUR 140,029 with companies in which the state has a direct controlling interest.
As at 31 December 2020, the Company disclosed operating receivables in the amount of EUR 527,418, operating liabilities
in the amount of EUR 470,217, ﬁnancial liabilities in the amount of EUR 54,850,000 and contingent assets and liabilities in
the amount of EUR 9,525,000 vis-à-vis the aforementioned companies. Financial liabilities comprise a loan raised under
market terms.
Remuneration of members of the Management Board and Supervisory Board and employees
on individual contracts, and the compensation of key management personnel in 2020
The Company did not approve any advances, loans or sureties to members of the Management Board, Supervisory Board
or employees on individual contracts.
REMUNERATION OF MEMBERS OF THE MANAGEMENT BOARD IN 2020
(in EUR)
Wages – fixed
portion
Fringe benefits and
other remuneration*
Total
Gross Net Gross Net Gross Net
MARKO CEGNAR, President of the Management Board 99,197 54,672 9,607 11,753 108,804 66,425
MARKO REMS, Member of the Management Board 89,451 50,662 7,053 9,676 96,504 60,338
MATIJA VOJSK, MSc, Member of the Management Board
(remuneration from 1 January 2020 to 11 November 2020)
83,091 45,279 5,417 9,579 88,508 54,858
Total 271,739 150,613 22,077 31,008 293,816 181,621
* Gross fringe beneﬁts and other remuneration comprise fringe beneﬁts (fringe beneﬁts for insurance, cars and liability insurance) and gross session
fees, while net fringe beneﬁts and other remuneration comprise net fringe beneﬁts, supplementary healthcare insurance, meal allowances, annual
leave allowances and net session fees. From this it is evident that net fringe beneﬁts and other remuneration are higher than gross fringe beneﬁts
and other remuneration.
NET FRINGE BENEFITS AND OTHER REMUNERATION
(in EUR)
Supplementary
pension
insurance
Other
fringe
beneﬁts
Reimbursement
of expenses
Share in
proﬁt
Other
remuneration
Total
MARKO CEGNAR, President of the
Management Board
2,819 3,462 1,395 0 4,077 11,753
MARKO REMS, Member of the Management
Board
2,819 2,481 1,383 0 2,993 9,676
MATIJA VOJSK, MSc, Member of the
Management Board (remuneration from
1 January 2020 to 11 November 2020)
2,592 152 1,230 0 5,606 9,580
Total 8,230 6,095 4,008 0 12,676 31,009
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INTEREUROPA / FINANCIAL REPORT / 2020
193
REMUNERATION OF THE SUPERVISORY BOARD AND ITS COMMITTEES IN 2020
(in EUR)
Remuneration
for function
performed
Remuneration
for work on
committees
Session
attendance fees
Reimbursement
of expenses
Other
remuneration and
fringe benefits
Total
Boris Novak, MSc, Chairman 13,976 2,329 4,226 28 26 20,585
Andrej Rihter, MSc, Deputy-Chairman 10,249 3,494 4,226 96 26 18,091
Vinko Filipič, Member 9,318 2,562 5,555 13 26 17,474
Milan Perović, Member 9,318 3,494 5,555 385 26 18,778
Tjaša Benčina, Member 10,267 2,544 4,721 240 26 17,798
Zlatka Čretnik, Member 10,175 2,544 6,270 1,189 26 20,204
Barbara Gorjup, External member of the Audit Committee
(remuneration from 13 January 2020 to 31 December 2020)
0 5,787 2,266 0 0 8,053
Barbara Nose, External member of the Audit Committee
(remuneration until 13 January 2020)
0 826 220 13 0 1,059
Total 63,303 23,580 33,039 1,964 156 122,042
REMUNERATION OF KEY MANAGEMENT PERSONNEL
(in EUR)
Intereuropa Group
2020 2019
Current remuneration (gross wages, annual leave and sick leave, shares in proﬁt, non-
monetary earnings (fringe beneﬁts))
543,838 690,524
Termination beneﬁts 0 8,500
Other earnings 13,485 25,352
Total 557,323 724,376
The remuneration of employees on individual contracts amounted to EUR 1,788,300. Gross wages accounted for EUR
1,559,755 of that amount, while fringe beneﬁts and other earnings accounted for EUR 228,545.
Note 33: Distributable profit
(in EUR)
Intereuropa Group Intereuropa, d. d.
2020 2019 2020 2019
Retained earnings 25,408,881 21,366,581 7,673,361 4,520,157
Net proﬁt for the ﬁnancial year 3,647,267 3,897,755 2,314,512 3,387,948
Total 29,056,148 25,264,336 9,987,873 7,908,105
INTEREUROPA / FINANCIAL REPORT / 2020
194
Note 34: Events after the statement-of-financial position-date
Since March 2020, the outbreak of COVID-19 has had a signiﬁcant impact on health-related, economic and other
developments across the world. Intereuropa Group companies are carefully monitoring current events, and are doing
everything necessary, in accordance with the measures adopted by the competent institutions and the recommendations
of experts, to protect the health of employees and business partners, and to ensure business continuity.
The negative impact of COVID-19 on the operations of the Group and Company has been relatively small due to the
continuous adaptation of activities to the circumstances in the countries where the Intereuropa Group provides services.
The liquidity of the Group and Company improved last year in part due to the deferral of debt repayments and payments
for employee participation in proﬁts, which contributed to the mitigation of liquidity and credit risks.
The Management Board assesses that there is relatively low risk that the continuation of the epidemic and the possible
renewed deterioration in conditions will affect the achievement of the business objectives of the Intereuropa Group and
Company.
It therefore assesses that the assumption of the Company and Group as going concerns is not under threat.
An agreement was signed with Pošta Slovenije at the end of 2020 on the transfer of activities, under which a portion of
Intereuropa’s support activities were transferred to Pošta Slovenije. Employees from those activities were also reassigned to
Pošta Slovenije with the transfer of activities.
In accordance with the annex to the relevant loan agreement, the Company began repaying loan principal and interest
and liabilities for employee participation in proﬁts on 31 March 2021.
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This is a translation of the original report in Slovene language
INDEPENDENT AUDITOR'S REPORT
To the Shareholders of Intereuropa d.d.
Opinion
We have audited the separate financial statements of Intereuropa d.d. (the Company) and the consolidated
financial statements of Intereuropa Group (the Group), which comprise the statement of financial position and the
consolidated statement of financial position as at 31 December 2020, the income statement and the consolidated
income statement, the statement of other comprehensive income and the consolidated statement of other
comprehensive income, the statement of changes in equity and the consolidated statement of changes in equity,
the statement of cash flows and the consolidated statement of cash flows for the year then ended, and a summary
of significant accounting policies and other explanatory information.
In our opinion, the accompanying separate financial statements and consolidated financial statements present fairly,
in all material respects, the financial position of the Company and the Group as at 31 December 2020 and its
financial performance and its cash flows for the year then ended in accordance with International Financial
Reporting Standards as adopted by the European Union.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISA) and Regulation (EU) No.
537/2014 of the European Parliament and of the Council of 16 April 2014 on specific requirements regarding
statutory audit of public-interest entities (“Regulation (EU) No. 537/2014 of the European Parliament and the
Council“). Our responsibilities under those rules are further described in the Auditor’s responsibilities for the audit
of the separate and the consolidated financial statements section of our report. We are independent of the Company
and the Group in accordance with the International Ethics Standards Board of Accountants’ (IESBA) International
Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code)
together with the ethical requirements that are relevant to our audit of the financial statements in Slovenia, and we
have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the separate and the consolidated financial statements of the current period. These matters were addressed in the
context of our audit of the separate and the consolidated financial statements as a whole and in forming our opinion
thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of
how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the separate and the
consolidated financial statements section of our report, including in relation to these matters. Accordingly, our audit
included the performance of procedures designed to respond to our assessment of the risks of material
misstatement of the separate and the consolidated financial statements. The results of our audit procedures,
including the procedures performed to address the matters below, provide the basis for our audit opinion on the
accompanying separate and consolidated financial statements.
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Revenue recognition in the separate and the consolidated financial statements
As at 31 December 2020, in the separate financial
statements the net sales revenues amounted to EUR 104
million, whereas the net sales revenues in the
consolidated financial statements amounted to EUR 150.7
million, as disclosed in Note 1: Sales revenue. The
recognition of revenue in accordance with IFRS 15 is
complex for the Company and the Group because of the
variety of contracts in place for transportation and
logistical services, client representation in front of customs
authority, warehousing services and other services.
Agreements with customers and services sometimes
include multiple element arrangements which increases
the complexity in the revenue recognition process.
We focused on this area because of the various revenue
streams, nature of services and involved management
judgement in assessment of how the performance
obligation fulfilment affect the timing of revenue
recognition. We identified revenue recognition as a risk
mostly due to the possibility of improper timing of revenue
recognition; resulting in overstatement of revenue as a
result of premature recognition of revenue or
understatement of revenue as a result of late recognition
of revenue.
These facts require more extensive audit procedures and
is therefore considered as key audit matter.
Our audit procedures included considering the
appropriateness of the Company’s and the Group’s
revenue recognition accounting policies and assessing
compliance with the policies in terms of International
Financial Reporting Standards as adopted by the
European Union.
We tested the design, implementation and operating
effectiveness of internal controls over revenue
recognition in terms of error, fraud prevention and
timing of revenue.
On a sample of transactions, we tested
appropriateness of determining the performance
obligations as well as allocation of the price
consideration to individual performance obligation and
timing of control transfer for each revenue stream, in
accordance with IFRS 15.
We involved information technology specialists to
assist us in evaluating of the application controls in the
process of revenue recognition.
We also tested a sample of sales transactions taking
place at either side of the statement of financial
position date as well as credit notes issued after the
statement of financial position date to assess whether
revenue was recognised in the correct period and
whether accruals for discounts as at 31 December
2020 are fully recognized.
For a sample of customers contracts open at the
statement of financial position date, we assessed the
management estimate of the level of the contract that
has been fulfilled, based on the obtained supporting
documentation from the third parties (i.e. invoices of
service providers, customs documentation, flight lists
etc).
In relation to the sample of customers contracts open
at the statement of financial position date, we reviewed
the appropriateness of the amount of the assets from
contracts with customers and liabilities from contracts
with customers, respectively.
We also assessed the adequacy of disclosures on
revenues included in Note 2.o. Revenues from
services rendered and Note 3.n. Revenues from
services rendered and Note 1: Sales revenue and Note
20: Assets from contracts with customers of the
separate and the consolidated financial statements,
and their compliance with International Financial
Reporting Standards as adopted by the European
Union.
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Land, measured at fair value in the separate and the consolidated financial statements
The Company’s and the Group’s property plant and
equipment includes land plots across the countries in
which the
Company and the Group operate, used to
support their business operations, primarily in providing its
warehous
ing and storage services. The Company and the
Group measure land at fair value and as at 31 December
2020 the carrying amount of land amounts to EUR 41.4
million in the separate financial statements and EUR 70.9
million in the consolidated financial statements.
The management’s assessment of fair value of land was
significant to our audit because this process is complex
and requires significant management judgement.
The management prepares estimates of the fair value with
the assistance of external appraisals, and references to
the observed recent transactions with similar assets. The
management prepares estimates of fair value every five
years, or more frequently if indications of impairment point
to a significant deviation in fair value.
In addition, the judgments and assumptions used are
subject to additional uncertainty caused by COVID 19
pandemic.
The management process of identification of indications of
impairment or change in fair value of the land is complex
and requires significant judgement.
We therefore determined this to be a key audit matter.
We evaluated management's assessment of fair value
of land.
We assessed the competency, experience and
objectivity of the external appraisals who assessed the
changes in fair value of land in 2020 compared to 2019,
based on the their assessment of capitalisation rates
and analyses of market indicators in 2020.
We involved valuation experts to assist us in the
evaluation of judgments and assumptions used in this
assessment, along with the effect of the uncertainties
caused by the Covid 19 pandemic, such as, but not
limited to, assessing the selection of comparable
transactions, capitalisation rates, occupancy rates and
average market rents in 2020.
We assessed the historical accuracy of management's
estimates based on the Company’s and the Group’s
recent sales transactions and by reviewing whether
these transactions resulted in significant profits or
losses.
We also evaluated the adequacy of disclosures
regarding the revaluation of land, which are included in
Note 2.f. Property, plant and equipment and Note 3.e.
Property, plant and equipment and Note 12: Property,
plant and equipment of the separate and the
consolidated financial statements and their compliance
with International Financial Reporting Standards as
adopted by the EU
.
INTEREUROPA / FINANCIAL REPORT / 2020
198
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Impairment of property, plant and equipment and investment property in the separate and the consolidated
financial statements
The Company’s and the Group’s property, plant and
equipment includes buildings and equipment in various
locations across countries where the Company and the
Group perform their operations. The Company’s and the
Group’s investment property includes land and buildings
at various locations that are leased out and held for the
purpose of achieving a rental income or appreciation of
value. As at 31 December 2020, property, plant and
equipment amounts to EUR 75.8 million (property, plant
and equipment) and EUR 16.7 million (investment
property) in the separate financial statements; whereas
property, plant and equipment amounts to EUR 141.3
million (property, plant and equipment) and EUR 22.7
million (investment property) in the consolidated financial
statements.
The Company and the Group annually assesses the
existence of impairment indicators for its property, plant
and equipment as well as investment property and
conducts the impairment tests when indicators are
identified.
Considering the last impairment tests for all significant
cash generating units were performed in 2019, the
management engaged the independent appraisal to
review whether the assumptions used in 2019 impairment
tests, like discount rates, average market rent and
occupancy rate, are still relevant.
In addition, the judgments and assumptions used are
subject to additional uncertainty caused by COVID 19
pandemic.
Management's assessment of the impairment indicators
for property, plant and equipment was significant to our
audit because this process is complex and requires
significant management judgement. We therefore
determined this to be a key audit matter.
We evaluated management's assessment of
impairment indications for property, plant and
equipment and investment property.
We assessed the competency, experience and
objectivity of the external appraisals who assessed the
changes in fair value of land in 2020 compared to 2019,
based on their assessment of capitalisation rates, and
analyses of market indicators in 2020.
We involved valuation experts to assist us in the
evaluation of judgments and assumptions used in this
assessment, such as, but not limited discount rates,
average market rent and occupancy rates.
We also evaluated the adequacy of the disclosures
regarding the impairments of these property, plant and
equipment and investment property, which are
included in Note 12: Property, plant and equipment,
Note 13: Investment property and Note 7: Other
operating expenses of the separate and the
consolidated financial statements and their compliance
with International Financial Reporting Standards as
adopted by the EU.
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Recoverability of deferred tax assets in the separate and the consolidated financial statements
At 31 December 2020 deferred tax assets amount to EUR
5.0 million in the separate financial statements and EUR 7.0
million in the consolidated financial statements, as disclosed
in Note 10: Corporate income tax (current and deferred tax)
to the separate and the consolidated financial statements,
majority of which relates to unused tax losses (EUR 4.6
million in the separate financial statements and EUR 4.6
million in the consolidated financial statements).
The risk exists that future taxable profits will not be sufficient
to fully recover the deferred tax assets. Management
supports the recoverability of the deferred tax assets mainly
with income projections that contain estimates of and tax
strategies for the future taxable income. However, judgments
and assumptions used are subject to additional uncertainty
caused by COVID 19 pandemic.
Changes in for example the business and its markets and
changes in tax regulations may affect these projections.
The valuation of deferred tax assets is significant to our audit
because the assessment process is complex and is based
on estimates of future taxable income.
We performed audit procedures on the valuation and
accuracy of the amounts recognized as a deferred tax and
the evaluation of tax exposures.
In addition, in respect of deferred tax assets, we assessed
and tested the Management's analysis and assumptions
supporting the probability that the deferred tax assets
recognized in the statement of financial position will be
recovered through taxable income in the future years and
available tax planning strategies.
We assessed the adequacy of the disclosures on the
deferred tax assets included in Note 10: Corporate
income tax (current and deferred tax), Note 1 Basis of
preparation of the separate and the consolidated financial
statements and their compliance with International
Finanal Reporting Standards as adopted by the EU.
I
mpairment of investment in subsidiaries
in the separate financial statements
Equity investments in subsidiaries amount to EUR 44.5
million as at 31 December 2020 which represents 25.8%
of the total assets as at 31 December 2020 in the separate
financial statements. Management’s impairment tests are
prepared based on the discounted future cash flows or net
asset model and are significant to our audit because the
assessment process is complex and requires significant
management judgment and imposes significant estimates.
Given the inherent subjectivity in the valuation, we
determined this to be a key audit matter.
Our audit procedures included an assessment of the
historical accuracy of management’s estimates,
evaluation and testing of the assumptions,
methodologies, discount rates and other inputs used
by the Company.
We included in our team a valuation expert to assist us
in our assessment of the discount rates and the
appropriateness of the models used.
We also considered sensitivities such as the impact on
the impairment tests if net operating income would be
decreased, or the discount rates would be increased.
We assessed the adequacy of the Company’s
disclosures on the impairment test performed, included
in Note 3.j.1. Impairment of investments in
subsidiaries, Note 18: Other non current financial
assets - Investments in subsidiaries and Note 8:
Finance income and costs of the separate financial
statements in accordance with International Financial
Reporting Standards as adopted by the European
Union.
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Other information
Other information comprises the information included in the Annual Report other than the separate and the
consolidated financial statements and auditor’s report thereon. Management is responsible for the other information.
Our opinion on the separate and the consolidated financial statements does not cover the other information and we
do not express any form of assurance conclusion thereon.
In connection with our audit of the separate and the consolidated financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is materially inconsistent with the
separate and the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to
be materially misstated. In addition, we assess whether the other information has been prepared, in all material
respects, in accordance with applicable law or regulation, in particular, whether the other information complies with
law or regulation in terms of formal requirements and procedure for preparing the other information in the context
of materiality, i.e. whether any non-compliance with these requirements could influence judgments made on the
basis of the other information.
Based on the procedures performed, to the extent we are able to assess it, we report that:
 The other information describing the facts that are also presented in the separate and the consolidated
financial statements is, in all material respects, consistent with the separate and the consolidated financial
statements; and
 The other information is prepared in compliance with applicable law or regulation.
In addition, our responsibility is to report, based on the knowledge and understanding of the Company and the
Group obtained in the audit, on whether the other information contains any material misstatement. Based on the
procedures we have performed on the other information obtained, we have not identified any material misstatement.
Responsibilities of management, audit committee and the supervisory board for the separate and the
consolidated financial statements
Management is responsible for the preparation and fair presentation of the separate and the consolidated financial
statements in accordance with International Financial Reporting Standards as adopted by the European Union, and
for such internal control as management determines is necessary to enable the preparation of the separate and the
consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the separate and consolidated financial statements, management is responsible for assessing the
Company’s and the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless management either intends to liquidate the
Company and the Group or to cease operations, or has no realistic alternative but to do so.
The audit committee and the supervisory board are responsible for overseeing the Company’s and the Group’s
financial reporting process. The supervisory board is responsible to approve the audited annual report.
Auditor’s responsibilities for the audit of the separate and the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the separate and the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with ISA will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these separate and consolidated
financial statements.
As part of an audit in accordance with audit rules, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
 identify and assess the risks of material misstatement of the separate and the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control;
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 obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Company’s and the Group’s internal control;
 evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management;
 conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s and the Group’s ability to continue as a going concern. If we conclude that
a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures
in the separate and the consolidated financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Company and the Group to cease to continue as a going
concern;
 evaluate the overall presentation, structure and content of the separate and the consolidated financial
statements, including the disclosures, and whether the separate and the consolidated financial statements
represent the underlying transactions and events in a manner that achieves fair presentation;
 Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the consolidated financial statements. We are responsible
for the direction, supervision and performance of the group audit. We remain solely responsible for our audit
opinion.
We communicate with the audit committee and the supervisory board regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide the audit committee and the supervisory board with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to
eliminate threats or safeguards applied.
From the matters communicated with the audit committee and the supervisory board, we determine those matters
that were of most significance in the audit of the separate and the consolidated financial statements of the current
period and are therefore the key audit matters.
Other requirements on content of auditor’s report in compliance with Regulation (EU) No. 537/2014 of the
European Parliament and of the Council
Appointment and Approval of Auditor
We were appointed as auditors of the Company and the Group at the general meeting of shareholders on 27 June
2019, the president of the supervisory board has signed the audit agreement on 10 October 2019. The agreement
was signed for the period of three years.
Total uninterrupted engagement period, including previous renewals (extension of the period for which we were
originally appointed) and reappointments for the statutory auditor, has lasted for 2 years. Sanja Košir Nikašinović
and Lidija Šinkovec are certified auditors, responsible for the audit in the name of Ernst & Young d.o.o.
Consistence with Additional Report to Audit Committee
Our audit opinion on the separate and the consolidated financial statements expressed herein is consistent
with the additional report to the audit committee of the Company, which we issued on 28 April 2021.
Non-audit Services
No prohibited non-audit services referred to in Article 5(1) of Regulation (EU) No. 537/2014 of the European
Parliament and of the Council were provided by us to the Company and its controlled undertakings and we remain
independent from the Company and its controlled undertakings in conducting the audit.
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In addition to statutory audit services and services disclosed in the annual report and in the separate and the
consolidated financial statements, no other services which were provided by us to the Company and its controlled
undertakings.
Ljubljana, 28 April 2021
Sanja Košir Nikašinović Lidija Šinkovec
Director, Certified auditor Certified auditor
Ernst & Young d.o.o.
Dunajska 111, Ljubljana
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The report below is the translation of auditor's report which relates
exclusively to the official annual report prepared in XHTML format and
issued in Slovenian language.
Report on compliance with the ESEF Regulation
To the management of Intereuropa d.d.
We performed a reasonable assurance engagement to verify the compliance of the separate and the
consolidated financial statements contained in the annual report of Intereuropa d.d. ("Company") for
the financial year ended 31 December 2020 with the provisions of Commission Delegated Regulation
(EU) 2019/815 on a European single electronic format relating to financial statements ("ESEF
Regulation"), relevant for the year 2020.
Responsibility of the management
Management of the Company is responsible for the preparation of the separate and the consolidated
financial statements in accordance with the provisions of ESEF Regulation, relevant for the year 2020.
Management the Company is responsible for, among other things:
 design, implementation and maintenance of an internal control system relevant to the application
of the requirements of the ESEF Regulation,
 the preparation of all financial statements contained in the annual report in the applicable XHTML
format and
 selection and use of XBRL labels as required by the ESEF Regulation.
Auditor's Responsibility
Our responsibility is to express a conclusion, on the basis of the audit evidence obtained, whether the
separate and the consolidated financial statements included in the annual report comply with the
requirements of the ESEF Regulation relevant for the year 2020 in all material respects. We
performed this reasonable assurance engagement in accordance with the International Standard on
Assurance Engagements ISAE 3000 (revised) Assurance Engagements, which are not an audit or
review of historical financial information ("ISAE 3000"). The nature, timing and extent of procedures
selected depend on the auditor's judgment. A reasonable level of assurance is a high level of
assurance, however, it does not guarantee that a verification performed in accordance with the above
standard will in all cases reveal any significant (non) material non-compliance with the requirements of
the ESEF Regulation.
Our independence and quality management
We comply with the independence and other ethical requirements of the Code of Ethics for
Professional Accountants issued by the International Ethics Standards Board for Accountants, which
establishes the fundamental principles of integrity, objectivity, professional competence and due care,
confidentiality and professional behaviour.
We apply International Standards on Quality Control 1 (ISQC 1), and accordingly, we maintain a
robust system of quality control, including policies and procedures documenting compliance with
relevant ethical and professional standards and requirements of the applicable law or regulation
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Summary of work performed
As part of the selected procedures, we performed the following activities:
 we have read the requirements of the ESEF Regulation, relevant for the year 2020,
 we got the understanding of the Company's internal controls relevant to the application of the
requirements of the ESEF Regulation,
 we have identified and evaluated the risks of material non-compliance with the ESEF Regulation
due to fraud or error; and
 Based on this, design and implement procedures to respond to the assessed risks and to obtain
reasonable assurance for the purpose of expressing our conclusion.
The goal of our procedures was to assess whether
 the separate and the consolidated financial statements, which are included in the annual report,
have been prepared in the valid XHTML format,
 the data contained in the consolidated financial statements required by the ESEF Regulation have
been tagged and all tagging meets the following requirements:
 the XBRL markup language was used,
 the elements of the basic taxonomy listed in the ESEF Regulation with the closest accounting
significance have been used, unless an extension taxonomy element has been created in
accordance with Annex IV of the ESEF Regulation,
 the mark-ups are in line with the common rules for tagging under the ESEF Regulation.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our conclusion.
Conclusion
In our opinion, the separate and the consolidated financial statements of the Company for the year
ended 31 December 2020 included in the annual report are in all material respects prepared in
accordance with the requirements of the ESEF Regulation, relevant for the year 2020.
Other information
The separate and the consolidated financial statements presented in electronic format in accordance
with the Regulation 2019/815 have been audited in accordance with the auditing rules. The auditor
issued the report on 28.4.2021 and expressed an unqualified opinion.
Ljubljana, 29 April, 2021
Sanja Košir Nikašinović Lidija Šinkovec
Director, Certified auditor Certified auditor
Ernst & Young d.o.o.
Dunajska 111, Ljubljana
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