Annual Report
2024
Annual Report 2024 - CIAK Grupa d.d. and its subsidiaries
CIAK Grupa d.d.
Savska Opatovina 36
10090 Zagreb
+385 1 34 63 521
+385 1 34 63 522
+385 1 34 63 523
+385 1 34 63 524
+385 1 34 63 516 (Fax)
ciak@ciak.hr
www.ciak.hr
investitori@ciak.hr
Investor Relations
Annual Report
2024
Sustainable Mobility
www.ciak.hr
Annual Report 2024 - CIAK Grupa d.d. and its subsidiaries
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ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
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ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
Contents
MANAGEMENT REPORT 4
1. SUMMARY OF FINANCIAL RESULTS FOR 2024 4
2. STETEMENT BY THE PRESIDENT OF THE MANAGEMENT BOARD 5
3. KEY BUSINESS INDICATORS 6
4. ORGANIZATIONAL STRUCTURE OF CIAK GROUP 7
4.1. History and foundation 7
5. CORPORATE GOVERNANCE 8
6. OPERATING RESULTS 9
6.1. Consolidatedprotandlossaccount 9
6.2. FinancialPositionReport 10
6.3. Financialindicators 11
6.4. Realizatonbybusinesssegments 12
7. KEY EVENTS FOR THE PERIOD UP TO 31 DECEMBER 2024 13
8. MARKETS, CUSTOMERS, PRODUCTS AND SERVICES 14
8.1. Auto parts 15
8.2. Batteries,oils,etc 16
8.3. Freightprogram 16
8.4. Recycling 17
8.5. Wastemanagement 17
8.6. Wholesale 18
9. THE MAIN BUSINESS RISKS TO WHICH THE GROUP IS EXPOSED 19
9.1. CurrencyRiskManagement 19
9.2. TheGroup'sexposuretointerestraterisk 19
9.3. TheGroup'sexposuretocreditrisk 20
9.4. TheGroup'sexposuretoliquidityriskandcashowrisk 20
10. OWNERSHIP STRUCTURE 21
11. OVERVIEW OF OTHER ANNOUNCMENTS, EVENTS, EVALUATIONS AND DATA 22
11.1. Importantbusinesseventsaftertheclosureofthenancialyear 22
11.2. CIAKGroup'ssubsidiaries 22
11.3. Repurchaseoftreasuryshares 22
12. EXPECTED DEVELOPMENT OF THE GROUP IN THE FUTURE 23
12.1. Makingannualbusinessplans 23
12.2. TheGroup'sR&Dactivities 23
SUSTAINABILITY REPORT 24
*The Sustainability Report is an integral part of the Management Report.
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28
28
33
34
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35
40
44
55
56
62
66
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77
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97
97
1. INTRODUCTION
1.1. Generalinformationaboutthereportandbasisofpreparation
1.2. Roleofadministrative,managementandsupervisoryauthorities
1.3. Reportingtomanagementandsupervisoryauthoritiesonsustainabilitymatters
1.4. Integratingsustainabilityresultsintoincentiveschemes
1.5. DueDiligence
1.6. Riskmanagementandinternalcontrols
1.7. StrategyandoverviewoftheGroup'sbusinessmodel
1.8. Groupstakeholders
1.9. Significantimpacts,risksandopportunities
Assessmentofsignificantimpacts,risksandopportunities
1.1
0. Disclosurerequirements
2. CLIMATE CHANGE
2.1. Powerconsumption
2.2. Grossgreenhousegasemissions
3. POLLUTION
4. RESOURCE USE AND CIRCULAR ECONOMY
4.1. EcoCycle
4.2. Wastemanagement
5. OWN WORKFORCE
5.1. EmployeesofCIAKGroup
6. CONSUMERS AND END-USERS
6.1. CIAKAutoAcademy
7. BUSINESS CONDUCT
7.1. VendorRelationshipManagement
7.2. Keyindicatorsofenvironmentallysustainableeconomicactivities(EU
Taxonomy)
8. CERTIFICATES AND ASSOCIATIONS
8.1. Certificates
8.2. Associations
9. NEW PRODUCTS
9.1. Tools&ServiceEquipment
9.2. Fleetdepartment
98
REPORT ON THE IMPLEMENTATION OF THE CODE OF CORPORATE GOVERNANCE
99
1.1. Shareholdersandtheinvestmentpublic 99
1.2. Administrativeandsupervisorybodiesandtheircommittees 100
1.3. Internalandexternalauditofthecompany 100
1.4. Inclusive 100
ANNUAL FINANCIAL REPORTS 101
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 102
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 103
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY 104
CONSOLIDATED STATEMENT OF CASH FLOWS 105
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 106
158
159
163
STATEMENT OF MANAGEMENT’S RESPONSIBILITIES
AUDITOR'S REPORT ON THE SUSTAINABILITY REPORT
AUDITOR'S REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
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ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
(1)
EBITDA (earnings before interest, taxes, value adjustment of xed assets other than nancial assets, depreciation and amortization) = EBIT (earnings before interest and
taxes) + amortization + value adjustment of xed assets other than nancial assets
(2)
The result in I-XII 2024 was positively inuenced by the effects resulting from acquisitions of companies of EUR 6.4m, while the depreciation of intangible assets of EUR
3.7m, realized one-off costs of EUR 680.5t and the cost of value adjustment from previous periods of EUR 402.4t had a negative impact. In 2023, the income from the
sale of the company's tangible non-current assets had a positive impact of EUR 599t, and the write-off current assets related to the two-year period of EUR 315t had a
negative impact
(3)
Earnings per share = net prot/number of shares
(4)
Simplied Free Cash Flow = EBITDA excluding one-off items – CAPEX (capital expenditure)
(5)
Net debt = Long-term and short-term nancial liabilities – Cash and cash equivalents
(6)
Gearing ratio = (Long-term and short-term nancial liabilities – Loans and deposits given – Cash and cash equivalents) / (Long-term and short-term nancial liabilities –
Loans and deposits given – Cash and cash equivalent + equity)
1
Summary of nancial
results for 2024
CIAK Group's consolidated revenue in 2024 amounted to EUR
359 million or 28% higher than 2023. Reported consolidated
EBITDA is EUR 33.2 million and is 44% higher than in 2023.
Consolidated EBITDA excluding one-off items amounted to
almost EUR 28 million and is 22% higher compared to the
previous year.
In 2024, further business and nancial growth of the CIAK
Group continued, which is evident from the results showing the
success of business expansion strategies from previous years.
With further continuation of the realization of acquisitions
and market consolidation in 2024, capital investments in 2024
amount to EUR 14.5 million.
In EUR thousands I-XII 2023 I-XII 2024 %
Sales revenues 277,841 350,555 26
EBITDA (1) 23,138 33,242 44
EBITDA without one-off items (2) 22,854 27,947 22
Prot / (Loss) from operations 12,058 14,739 22
Prot from operations without one-off items (2) 11,774 13,182 12
Result from nancial activities (2,466) (4,223) 71
Gross prot / (loss) 9,592 10,516 10
Gross prot / (loss) of period without one-off items(2) 9,308 8,959 (4)
Net prot / (loss) 7,003 9,232 32
Net prot / (loss) of period without one-off items 6,719 7,675 14
Earnings per share (3) 0.35 0.47 32
Simplied free cash ow (4) 9,346 13,492 44
Net debt (5) 60,714 87,384 44
Net gearing (%) (6) 46 53 16
CAPEX 13,509 14,455 7
MANAGEMENT REPORT
5
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
Stetement by the president of
the management board
2
Ivan Leko
President of the
management board
CIAK Group continued in 2024 with the delivery of good business results, above the previous
year's realization.
Compared to last year, at the consolidated level, CIAK Group recorded an increase in operating
income by 28%, amounted to almost EUR 360 million in total, and an increase in reported
EBITDA of 44% to a total of EUR 33.2 million. Considering the acquisitions realized in 2024 and
the positive effects resulting from them, EBITDA excluding one-off items in 2024 amounts to
almost EUR 27.9 million or 22% higher than in the previous period.
At the same time, consolidated net prot amounted to EUR 9.2 million, which is an increase of
32% compared to the previous year. Net prot excluding one-time items amounted to EUR 7.7
million or 14% more than in the previous period.
The largest part of the growth relates to the organic growth of the CIAK Group, which is the
result of the continuation of synergy effects and further development of realized acquisitions
from previous periods. In 2024, CIAK Group continued its acquisition activities and further
expanded its operations in the markets of Serbia, Slovenia and Bosnia and Herzegovina, also
continuing organic growth in other markets.
At the same time, realized capital investments in 2024 amount to EUR 14.5 million and compared
to the same period last year, are higher by 7% and continue the trend of continuous growth. This
sends a clear message that CIAK Group continues its business development and maintains its
focus on long-term business development and delivery of business results.
The realization of all previous years so far represents a good foundation for further business
development, while the CIAK Group maintains its focus on further consolidation and
optimization of business processes at the Group level. The optimal way of doing business, the
level of management and the delivery of key business goals and projects is a priority in the
continuation of work in 2025.
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ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
Key business
indicators
3
EUR 359
million
of consolidated
operating revenue
EUR 14.5
million
of capital investments
in 2024
EUR 33.2
million
consolidated
EBITDA
6
business
segments
3.409
employees as of
31 December 2024
7
countries
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ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
4
Organizational structure of CIAK Group
4.1. HISTORY AND FOUNDATION
CIAK Group d.d., Zagreb (formerly Direkt d.o.o., the "Company")
is a company established in the Republic of Croatia on January
14, 1999. The core business activities of the Company and its
subsidiaries (collectively referred to as the "Group") include
wholesale and retail of Auto parts and waste management, and
date back to 1994.
CIAK Group d.d., as the parent company, owns several
subsidiaries as shown in the report item "Organizational
structure of the Group", and the term "Group" hereinafter
means CIAK Group d.d. as the parent company together with its
subsidiaries.
The Group is headquartered in Zagreb, Croatia, Savska
Opatovina 36.
By the decision on legal transformation of 27 December 2019, the
Company was transformed from a limited liability company into
a joint stock company which was registered at the Commercial
Court in Zagreb on 2 January 2020 and the Company changed
its name to CIAK Group d.d.
Management of the Zagreb Stock Exchange d.d. brought on
29 December 2020 Decision on listing on the Ocial Market of
19,751,989 ordinary shares of CIAK Group d.d. with headquarters
in Zagreb, OIB: 28466564680, without nominal amount, mark:
CIAK, ISIN: HRCIAKRA0007.
The rst day of trading with nancial instruments determined
by the Decision of the Zagreb Stock Exchange d.d. was 4
January 2021.
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ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
5
Corporate governance
5. ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY BODIES
MANAGEMENT BOARD
SUPERVISORY
BOARD
IVAN LEKO,
President of the Management Board
DOMINIK LEKO,
Member of the Management Board
DALIBOR BAGARIĆ,
Member of the Management Board
IVICA GREGURAŠ,
Member of the Management Board
IVAN MILOŠ,
Member of the Management Board
In accordance with the Statute, CIAK Group d.d. Management
Board may have at least one and a maximum of ve members. If the
Management Board has more than one member, one of the members
must be the Chairman of the Board representing the company
independently and individually, and the other members together with
the President or with another member of the Board. The management
currently consists of ve members, namely:
STJEPAN LJATIFI, President
VJEKOSLAV MESAROŠ, Deputy President
SLAVICA ZRINSKI, Member
ŠTEFICA JAMBREK, Member
DAMIR KOS, Representative of the workers on
the Supervisory Board
ZVONKO MERKAŠ, Member
MARKO VARGA, Member
The Supervisory Board of the Group consists of seven members, one
of whom is the Chairman of the Supervisory Board, and one member
is the Deputy Chairman of the Supervisory Board.
Currently, the members of the Supervisory Board are:
The business address of the members of the Management Board and the Supervisory Board is Savska Opatovina 36, Zagreb. The
business address of the members of the Management Board is Savska Opatovina 36, Zagreb.
The General Meeting of the Company consists of the shareholders of CIAK Group d.d.
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ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
6
Operating results
6.1. CONSOLIDATED PROFIT AND LOSS STATEMENT
The
consolidated revenues of the CIAK Group in 2024 amounted to EUR 359 million or 28% more compared to 2023. Sales revenues
increased compared to the previous year by 26% or EUR 72,7 million.
EBITDA excluding one-off items is EUR 33.2 million and is 44% higher than in 2023.
Financial costs realized in 2024 are EUR 1.8 million higher compared to 2023, partly as a result of consolidation effects, and partly
due to an increase in interest expense.
In EUR thousands I-XII 2023 I-XII 2024 %
Sales revenues
277,841 350,555 26
Other operating revenues 3,829 8,877 132
Operating revenues 281,670 359,432 28
Costs of raw materials and consumables 32,564 38,360 18
Costs of goods sold 153,382 193,784 26
Depreciation
11,080 14,765 33
Staff costs 48,397 66,680 38
Other costs 19,357 24,209 25
Value adjustments of long-term assets (excluding nancial assets) 0 3,738 100
Value adjustments of short-term assets (excluding nancial assets) 4,482 3,232 (28)
Provisions for costs and risks 350 (76) (122)
Operating expenditures 269,612 344,693 28
Prot / (Loss) from operations 12,058 14,739 22
Finance income 245 258 5
Finance costs 2,711 4,481 65
Prot / (loss) from nancial activities (2,465) (4,223) 71
Prot / (Loss) of the period 9,592 10,516 10
Net prot / (Loss) of the period 7,003 9,232 32
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ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
6
6.2. FINANCIAL POSITION REPORT
In EUR thousands 31 December 2023 31 December 2024 %
Intangible assets 9,263 11,091 20
Real estate, plant and equipment 54,857 77,051 40
Loans and deposits given 365 392 7
Investment in holdings, securities and other xed nancial
assets
315 317 1
Receivables 300 74 (75)
Deferred tax assets 295 1,103 274
Total xed assets 65,395 90,028 38
Current assets
Inventories 96,157 135,430 41
Customer receivables 36,625 41,595 14
Other receivables 2,725 3,062 12
Loans and deposits given 1,310 1,426 9
Cash & cash equivalents 13,706 21,738 59
Total current assets 150,523 203,251 35
Prepaid expenses and accrued revenues 6,542 10,225 56
Total assets 222,460 303,504 36
Equity and liabilities
Equity and reserves
Initial equity 26,215 26,215 0
Capital reserves 24,505 24,505 0
Other reserves 603 769 28
Retained prot / (Loss brought forward) 11,860 14,675 24
Prot / (Loss) of the period 7,025 9,285 32
Minority interest (37) (66) 78
Total equity 70,171 75,383 7
Provisions 3 3 0
Long-term liabilities
Long-term liabilities for loans and deposits 54,481 84,178 55
Other long-term liabilities 1,171 11,181 855
Deferred tax liability 778 879 13
Total long-term liabilities 56,430 96,238 71
Short-term liabilities
Liabilities for bank's and other creditor's loans 19,939 24,944 25
Liabilities to suppliers 58,815 86,025 46
Taxes and similar liabilities 9,852 11,566 17
Other short-term liabilities 2,602 3,001 15
Liabilities to employees 2,724 4,146 52
Total short-term liabilities 93,931 129,682 38
Accruals and deferred income 1,925 2,198 14
Total liabilities 152,289 228,121 50
Total equity and liabilities 222,460 303,504 36
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ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
6
6.3. FINANCIAL INDICATORS
The company's xed assets are 38% or EUR 24.6 million higher compared to the nal balance of the previous year, mostly because of
organic and inorganic expansion, so the most signicant increase is in right of use assets.
The cash and cash equivalents position are EUR 21.7 million as of 31 December 2024, and the company's inventories are EUR 39.3 million
or 41% higher than at the end of the previous year, of which EUR 15 million refers to inorganic growth.
The company's working capital has been strengthened compared to the previous period, i.e. as of 31 December 2024 it amounts to EUR
112.7 million and is EUR 25.1 million or 29% higher compared to 31 December 2023.
The inventory turnover ratio is lower compared to the previous reporting period, primarily as a result of acquisitions and inorganic
growth, which affected the balance sheet increase in inventories at the group level, while revenues were consolidated in the Group from
the date of acquisitions in accordance with accounting standards.
The asset turnover ratio recorded a decline in 2024, for the same reason as above stated. The greatest impact had acquisitions realized
and the balance of other, primarily non-current assets.
The receivables turnover ratio recorded an increase compared to the previous year, which indicates a stable collection of the Group's
receivables during 2024.
With the continuation of further realization of the planned acquisitions, the net debt as of 31 December 2024 amounts to EUR 87.4
million. The Net debt/EBITDA ratio is at the same level as in the previous year and amounts to 2.63, which is signicantly below the
possible rates at the consolidated level.
9,00
8,00
7,00
6,00
5,00
4,00
3,00
2,00
1,00
0
Inventory turnover
ratio
Asset turnover
ratio
Current
liquidity ratio
Recivables turnover
ratio
2023. 2024.
2.59
2.89
1.29
1.20
1.60
1.57
7,59
8,43
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ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
6
Revenues generated by operations in the
Auto parts segment account for the most
signicant share of the Group's total sales
revenues, i.e. 73%, while in the previous year
they accounted for a total of 72%. Total sales
revenues in the auto parts segment in 2024
amount to EUR 257 million and are EUR 59
million or 29% higher than in the previous
year, which is an indicator of the successful
integration of companies acquired in
previous years as well as this year and taking
a more favourable market position in this
segment, in accordance with the Group's
strategic goals.
The operating prot of the auto segment
accounts for 78% of the Group's total
operating prot before allocation of
management and administration costs, i.e. a
total of EUR 16.5 million.
6.4. REALIZATON BY BUSINESS SEGMENTS
*Realization shows operating prot without allocated management and administration costs
Auto program - vehicles
Inter-segment revenues
Truck program
Batteries, oils and similar
Wholesale
Ecology
Breakdown of operating prot by segment*
22
20
18
16
14
12
10
8
6
4
2
0
21,0 mEUR
16,8 mEUR
16 11
1
2
2
3
1
1
1
1
2024. 2023.
Display of realized sales revenues by segment
450
400
350
300
250
200
150
100
50
0
-50
-100
-50
-58
199
257
38
39
54
69
11
14
25
30
2024. 2023.
278 mEUR
351 mEUR
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ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
7
Key events
for the period up to 31 december 2024
7. CIAK GROUP HAS SUCCESSFULLY INTEGRATED
THE ACQUISITIONS FROM THE PREVIOUS PERIOD AND
CONTINUED WITH FURTHER GROWTH
During 2024, CIAK Group continued the development cycle
started in 2022, i.e. the phase of expanding its business and
sales network in accordance with strategic business plans.
The integration of acquisitions realized during the previous
year was successfully completed.
In 2024, CIAK Group continued its development through
organic and inorganic growth. In addition, in 2024, four
companies in three countries were acquired, primarily in the
IAM segment, i.e. the Auto parts segment.
On April 16, 2024, a member of the CIAK Group, C.I.A.K.
Auto d.o.o. Croatia, signed a takeover transaction for two
companies – STAHLGRUBER trgovina d.o.o. Ljubljana and
SIM IMPEX Banja Luka d.o.o., a member of LKQ Europe.
The takeover transactions of both companies have been
fully completed.
The company STAHLGRUBER trgovina d.o.o. Ljubljana
is one of the independent distributors in the automotive
aftermarket (IAM) in Slovenia and generates annual revenues
of over EUR 12 million at three sales locations. With an
experienced team and a business culture and business
expertise very similar to that applied in C.I.A.K. Auto, we
expect to take full advantage of synergy effects and enable
the Company to achieve even higher results in the coming
years. The company will continue to operate on the market
as C.I.A.K. Auto Slovenia, which will further strengthen the
market position of C.I.A.K. Auto in the Adria region.
Sim Impex d.o.o. is one of the leading independent
distributors of Auto parts (IAM) in Bosnia and Herzegovina,
generating an annual revenue of more than EUR 21 million with
245 employees at 33 locations in Bosnia and Herzegovina.
Thanks to a highly developed logistics and distribution
system, a portfolio of several thousand customers, a wide
range of spare parts and qualied employees, it has a strong
potential for further development of the IAM segment in
Bosnia and Herzegovina.
Considering the core activities of CIAK Group, these
acquisitions are logical steps towards further strengthening
and growth of CIAK Group's portfolio in the market of
Southern and Eastern Europe.
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ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
8
Markets, customers,
products and services
The Group carries out the majority of its business through its own companies
on the markets of the Republic of Croatia, Bosnia and Herzegovina, the
Republic of Serbia, the Republic of Slovenia, Montenegro, North Macedonia
and Kosovo. This has laid a solid basis for further business development
and the continuation of the strategy of consolidation of the independent
aftermarket market in still insuciently consolidated markets.
In addition to these markets, thanks to the internationally recognized
automotive industry fairs that CIAK Group has attended in the last two years,
the impact of CIAK Group's export operations outside the market, where the
members of the group are physically present through a network of business
units, is increasingly noticeable, and further development of other foreign
markets is expected with the primary goal of expanding the sale of its own
brands in the battery and oil segment.
CIAK Group maintains a high level of risk diversication and
business sustainability through continuous operations in 6
segments (Auto parts, Batteries, oils, etc., Freight program,
Recycling, Waste management and Wholesale). The two main
business divisions are the IAM (Independent Aftermarket)
division and the Ecology division.
The strength of CIAK Group stems from long-term partnerships
with key suppliers of the IAM sector as well as the strategy of
consolidation of the still unconsolidated IAM markets, which is
also recognized as the main trend within the EU region.
We have been following the stable development of the Ecology
Division for over 20 years, thanks to well-laid foundations:
gathering knowledge through cooperation with the largest
European companies in the eld of hazardous waste
management and adherence to the highest standards in
work. The synergy effect with the IAM division of the business
enables capillary access to raw materials throughout the
region and an ecient Battery Recycling segment.
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ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
8
Distribution of auto parts as a business segment includes the
purchase and sale of auto parts on the IAM market, i.e. auto parts
for sale to customers who do not visit authorized service networks
(OES). The standard range includes brakes, lters, wipers, shock
absorbers, lights, suspension parts, etc., but also parts such as
batteries, tires, oils, antifreeze, chemistry, etc.
Business in this segment began in 2013 and over the years the
Group has acquired existing smaller companies that already had
their own sales units of Auto parts in the territory of the Republic
of Croatia. In parallel with these acquisitions, the Group opened
its own sales units. Regional expansion in the Auto parts segment
began more intensively after the IPO in 2021, and the strategic
goal of CIAK Group is to become the leading distributor of Auto
parts in the so-called Adria region.
Customers from the segment of distribution of Auto parts are
mostly legal entities and crafts, and the largest percentage of
customers are service centres, mechanic shops, smaller dealers,
etc.
In the Republic of Croatia, the IAM market has grown signicantly
in the last eight years due to the growth of used vehicles
compared to new vehicles, and therefore the older vehicle eet
with an increased need for Auto parts. In addition, the major
supply chain crisis has prevented the rapid delivery of new
vehicles and has further affected the increase in the number of
used vehicles compared to new ones, as well as the average age
of the eet. During 2025, further organic growth is expected in
the mature phase for the Croatian market, given the already high
consolidation where CIAK Group and its members are the leading
of the three main competitors in sales on the domestic market.
In the remaining markets, after the initial inorganic expansion
through acquisitions made during the previous years, strong
organic growth continued in each market where CIAK Group
companies are present. Accordingly, there was a strong overall
growth in the Group's revenues in the Auto parts segment. Thanks
to demographic trends and current market shares of CIAK Group,
further strong growth is expected in the markets of Serbia,
Montenegro and Macedonia, as well as stable growth in the
somewhat more saturated markets of Bosnia and Herzegovina
and Slovenia.
8.1. AUTO PARTS
Overview of Ciak Group Segments and Divisions
IAM
Auto parts
Freight
program
Batteries
and oils
Recycling
Waste
management
Wholesale
ECOLOGY
WHOLESALE (Other)
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ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
Distribution of batteries, oil, etc. includes the
sale of
accumulators, industrial batteries, oils, lubricants and
other car supplies such as whisks, additives, etc. (all
together the so-called consumables). CIAK Group
is the significant distributor of batteries in the
Republic of Croatia, Bosnia and Herzegovina, the
Republic of Serbia and North Macedonia and is also
present as a leader in the markets of Montenegro and
the Republic of Slovenia.
In addition, it is the largest authorized distributor
of numerous world manufacturers of accumulators
and batteries, and the first company in the
Republic of Croatia that also disposes of and
recycles waste lead-acid batteries.
The most important product is CIAK Starter
batteries, which occupy up to 35% of the battery
market in the Republic of Croatia, which gives the
Group a leading market share in this part of sales. The
main advantage of the Group is the developed network
of authorized battery service providers (350), i.e.
stations in the region.
About 75% of sales of the main product group, i.e.
batteries, refer to the sale of own brands (mostly CIAK
Starter battery products), while the rest refers to the
resale of products from other manufacturers or other
private labels. Suppliers from this segment are also
signicant customers from the Ecology division, where
the Group sells lead ingots for batteries as an input raw
material, and procures nished batteries, showing an
outstanding example of a sustainable circular economy
in the Republic of Croatia.
The expansion of the sales network in the Auto parts
segment also contributes to a signicant increase in the
sales potential of the Batteries, Oils, etc. segment, which
CIAK Group has effectively used over the past years and
will continue to further increase its market share in all
remaining markets and through the channels of its own
companies present in the independent aftermarket.
The freight program segment includes the purchase
and sale of parts for trucks, work machinery and other
commercial vehicles on the IAM market.
In addition to the market of the Republic of Croatia,
CIAK Group is also present in the markets of Bosnia and
Herzegovina and the Republic of Serbia, and the organic
development of the freight program segment on the
market of Montenegro has just begun at the end of the
year.
The Group opened this division in 2014 with the
acquisition of three existing companies operating in the
Republic of Croatia. In addition to these acquisitions,
growth was also achieved organically, i.e. by establishing
new companies. The Group currently has a leading
market share in the Republic of Croatia and is among the
few in the Republic of Croatia that combines both the car
and freight program for the IAM market in a signicant
volume of business. The largest part of revenues in the
segment of the freight program was generated from
the distribution of parts for trucks, while revenues
generated from parts for buses and off-road machinery
were represented to a lesser extent.
A typical assortment includes brakes, lters, wipers,
shock absorbers, lights, suspension parts, etc., but also
batteries, tires, oils, antifreeze, accessories, etc. (so-
called consumables).
Direct import of all parts for commercial vehicles
enables the provision of the best service for commercial
vehicles and the shortest procurement time for spare
parts. The customers of this segment are mostly legal
entities and craftsmen such as car carriers, large eet
customers, mechanic workshops, smaller dealers, etc.
Thanks to European trends – especially in major markets
such as Germany – many participants in the freight
program segment from our countries are faced with
stable and/or declining operating revenues (primarily
due to a smaller number of truck transports) as early as
2024. Despite this, as the market leader in the Republic
of Croatia, CIAK Group managed to deliver growth during
2024 in the freight program segment.
8.2. BATTERIES, OILS, ETC.
8.3. FREIGHT PROGRAM
8
17
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
Recycling involves the recycling of waste industrial
batteries and accumulators. Companies based outside
the Republic of Croatia only collect or buy old batteries,
while in the Republic of Croatia they are directly recycled.
CIAK Group sets an example of a sustainable circular
economy where environmental, economic and
development goals are aligned.
At the Recycling Centre for the Recovery of Accumulators
and Batteries in Zabok, the Group produces processed
lead alloys (ingots), plastics and acids, i.e. components
for the production of new batteries, through the process
of processing components of old batteries - including
the processes of sorting and hydro separating 90-95% of
the accumulators that are received at the entrance and
melting of lead grids, paste and dust.
CIAK Group is currently the only one that has developed a
closed system for recycling accumulators and batteries in
the Republic of Croatia.
The business model of this segment is set up in such a
way that the obtained raw materials are sold after the
recycling process to foreign buyers who are also battery
manufacturers. The same raw material buyers sell
nished new batteries to the Group as suppliers of the
battery and oil distribution segment, based on a multi-
year cooperation agreement.
In its plants, CIAK Group uses state-of-the-art technology
and state-of-the-art production methods, and all
recycling processes are in accordance with industry and
environmental standards. In addition, the Group is also
engaged in the resale of surplus purchased batteries that
cannot be recycled due to the current capacities of the
Recycling Centre.
Battery buyback is done in two ways:
(i) active (B2B) in collection stations and mechanic shops,
end-users with a larger eet, and,
(ii) passive (B2C) through the "old for new" model, whereby
the Group uses its own retail network and network of
service partners, consisting of a total of 350 points of
purchase, making it the largest purchase network in the
region.
Revenues in this segment are largely externally inuenced
by the movement of the market price of lead (the so-
called LME Lead Index, English: London Metal Exchange
Lead Index), while the quantities of purchased batteries
are subject to the company's business decision.
Waste management includes the activity of collecting,
transporting, recovering and disposing of hazardous and
non-hazardous waste, including the supervision of these
procedures, as well as the subsequent maintenance of
disposal sites, the activity of remediation of contaminated
sites and industrial plants.
CIAK Group manages over 30 thousand tons of hazardous
and non-hazardous waste per year. The Group has
experience in the management of all types and categories
of waste and has a maximum capacity of over 70 thousand
tons per year.
The company has established cooperation with over
2000 economic entities from which it takes, transports,
processes and disposes of hazardous and non-hazardous
waste daily. The collected waste is partly treated
independently, and where this is not possible, the waste
is transported to unaliated companies that have
their own facilities for the processing of the remaining
waste, and all hazardous waste is transported to foreign
incinerators.
The Group's entry into the waste management market
began in 2000 in the former waste management centre in
Vojnić and was signicantly developed with a greeneld
investment for the construction of a waste management
centre at the location in Zabok.
CIAK Group establishes the only centre for CFCs in which
it receives controlled substances and/or uorinated
greenhouse gases from refrigeration and air conditioning
equipment, heat pumps, re protection systems and
re extinguishers from authorized service providers.
CIAK Group also established its own testing laboratory
as a natural sequence of performing the activities of
remediation of contaminated sites and industrial plants.
Activities in this segment are regulated in detail by law
and under the supervision of competent state authorities
related to the adequacy of waste disposal.
CIAK Group has a leading share in the waste management
market in this segment.
8.4. RECYCLING
8.5. WASTE MANAGEMENT
8
18
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
8
Display of locations and markets by business segments
Auto parts Recycling
Batteries, oils, etc. Waste management
Freight program Wholesale
8.6. WHOLESALE
Wholesale other as a business segment includes wholesale
of car supplies, textiles and garden program.
The Group has been present in this segment on the Croatian
market since the beginning of 2000, and at that time it
was primarily engaged in the wholesale of the range of car
accessories.
In this area of business, the Group has established
cooperation with large retail chains in the Republic of
Croatia, which are signicant customers in this segment.
Goods are mostly purchased directly from manufacturers,
and the Group, through its own segment of battery and oil
distribution, is also the main distributor of private brands
of batteries to large retail chains. Taking into account
the increasing penetration in the garden program and the
excellent assortment of its own brand, which has been
signicantly expanded in cooperation with the world's two
largest manufacturers of garden equipment and garden
and cordless tools, during 2024 the group was additionally
engaged and launched the business of this segment in BiH
through a separate company CIAK TRADE BiH, and through
the existing company CIAK in Serbia, and a further positive
contribution of this segment is expected.
19
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
9
The main business risks to
which the group is exposed
9.1. CURRENCY RISK MANAGEMENT
The Group's currency risk is related to possible signicant changes in the exchange rate of foreign currencies that are
signicant for the Group's operations. This risk relates to the movement of the exchange rate of the Serbian dinar (RSD)
and the North Macedonian dinar (MKD), since the Group operates on foreign markets (the Republic of North Macedonia and
the Republic of Serbia) and most transactions with foreign customers and suppliers are denominated in these currencies.
To the extent possible, the Group applies a natural hedge based on the principle that the combination of currencies in the
debt portfolio reects the currency position of free cash ow. Through the sales price policy, the Group corrects possible
negative impacts of exchange rate changes.
In addition, the Group manages operational currency risks through a combination of other instruments, such as payments
before maturity and exchange rate negotiations with commercial banks.
9.2. THE GROUP'S EXPOSURE TO INTEREST RATE RISK
The Group is exposed to the risk of changes in interest rates since it enters into loan agreements with xed and variable
interest rates. As at 31.12.2024, out of the total debt of the Group on which interest is accruing, a larger share of the Group's
debt (principal) on which interest ows was contracted at variable rates. Most of these variable interest rates are linked to
benchmark interest rates such as EURIBOR.
The Group does not speculate on the movement of interest rates, so it primarily chooses a variable interest rate. The Group
actively and continuously monitors changes and projections of interest rates and continuously renances loan obligations
in accordance with current market conditions.
20
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
9
The sale of goods and services to customers on deferred payment creates a credit risk, a risk of non-
payment or non-performance of contractual obligations by the Group's customers. Overdue receivables from
customers have a negative impact on the Group's liquidity, and overdue corrected receivables also have a
negative impact on the Group's nancial result.
In business with customers, activities are carried out to protect against the risk of debt collection. Buyers are
assessed according to creditworthiness, nancial indicators and creditworthiness, and in accordance with
the data obtained and previous experience with customers, credit conditions in business with customers are
dened.
For the categorization of customers and the determination of credit conditions, data from ocial nancial
reports of customers are mainly used, and ratings from independent credit rating agencies are used. The
exposure analysis is prepared on an ongoing basis, and the credit exposure is monitored and controlled
through credit limits that are changed and reviewed at least once a year. The Group collects payment
collateral from customers, wherever possible, for the purpose of minimizing possible credit risks due to non-
performance of contractual obligations. Some customers, especially large buyers of certain segments of
activity (e.g. ecology, recycling) are also suppliers of the Group where regular compensations are carried out.
This minimizes credit risk in this part.
The Group operates with a large number of customers of different industries and sizes, which makes the
risk dispersed, i.e. not concentrated on a smaller number of customers. Part of the sale of goods on deferral
refers to state institutions and buyers in state ownership and ownership of local self-government, who do not
submit payment security instruments.
9.3. THE GROUP'S EXPOSURE TO CREDIT RISK
The Group manages liquidity risk by maintaining adequate reserves and credit lines on an ongoing basis.
Also, the Group continuously monitors and manages the maturity of customer receivables and liabilities to
suppliers, continuously comparing the planned and realized cash ow. In addition, through working capital
management and inventory level optimization, the company makes maximum use of liquidity potential.
The Company actively manages price risks through a strategic commercial policy and adjustment of sales
prices. Each market has specialised teams responsible for continuously monitoring market conditions and
managing relevant risks based on up-to-date information. These teams regularly analyse price movements,
diversify supply channels and, where necessary, apply hedging strategies, including long-term supplier
contracts and dynamic pricing policies, to ensure business stability and minimise the negative effects of
market uctuations.
Related to listed products, such as lead, there is a natural hedging between incoming and outgoing inputs.
Since the cost of the input raw material is dened by the exchange prices on the London Metal Exchange
(LME), the output prices are also determined by the same factor, thus eliminating commodity risk to a
signicant extent through natural hedging.
9.4. THE GROUP'S EXPOSURE TO LIQUIDITY
RISK AND CASH FLOW RISK
9.5. THE GROUP'S EXPOSURE TO PRICE RISK
21
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
10
Ownership structure
OWNERSHIP STRUCTURE - on 31.12.2024.
ERSTE & STEIERMARKISCHE BANK d.d.
PBZ CO OMF kategore B
Skrbnički račun
Ivan Leko
Agram Brokeri d.d./
Leko Ljilja
HPB d.d.
FOND ZA FINANCIRANJE RAZGRADNJE NEK
Skrbnički račun
OSTALI
OTP BANKA d.d.
AZ OMF kategore B
Skrbnički račun
OTP BANKA d.d.
ERSTE PLAVI OMF kategore B
Skrbnički račun
ZAGREBAČKA BANKA d.d.
AZ PROFIT ODMF
Skrbnički račun
RAIFFEISENBANK AUSTRIA d.d.
RAIFFEISEN DMF
Skrbnički račun
A.P.I. METALI d.o.o.
OTP BANKA d.d.
AZ OMF kategore A
Skrbnički račun
50,66% 16,10%
9,52% 4,34%
4,86%
4,32%
3,43% 3,31% 1,65%
1,01%
0,79%
22
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
11
11.1. IMPORTANT BUSINESS EVENTS AFTER THE CLOSURE OF
THE FINANCIAL YEAR
Overview of other announcments, events,
evaluations and data
After 31 December 2024, there were no signicant changes in the Company's operations, i.e. there is no new information
on estimates made as of the balance sheet date that would have a signicant impact on the nancial statements of CIAK
Group d.d. for 2024.
11.2. CIAK GROUP'S BRANCHES
On 31 December 2024, CIAK Group had registered branches as shown in the presentation.
Company in the Group Number of branches
CIAK TRUCK d.o.o. Novi Sad
5 BUSINESS UNITS REGISTERED AS BRANCH OFFICES
C.I.A.K. d.o.o. Novi Sad
2 BUSINESS UNITS REGISTERED AS BRANCH OFFICES
C.I.A.K. AUTO EKSPORT-IMPORT dooel Skopje
7 BUSINESS UNITS REGISTERED AS BRANCH OFFICES
C.I.A.K. AUTO d.o.o. Sarajevo
3 BUSINESS UNITS REGISTERED AS BRANCH OFFICES
CIAK TRUCK d.o.o. Sarajevo
2 BUSINESS UNITS REGISTERED AS BRANCH OFFICES
AUTO-MILOVANOVIĆ d.o.o. Banja Luka
29 BUSINESS UNITS REGISTERED AS BRANCH OFFICES
C.I.A.K. d.o.o. Sarajevo
2 BUSINESS UNITS REGISTERED AS BRANCH OFFICES
Potokar d.o.o. Ljubljana
15 BUSINESS UNITS REGISTERED AS BRANCH OFFICES
Sim Impex d.o.o. Banja Luka
31 BUSINESS UNITS REGISTERED AS BRANCH OFFICES
C.I.A.K. Auto SH.P.K Đakovica
1 BUSINESS UNIT REGISTERED AS A BRANCH OFFICE
11.3. REPURCHASE OF TREASURY SHARES
In 2024, the Group acquired 26,221 treasury shares with a nominal amount of EUR 34,801.25, representing 0.13% of the
share capital. Repurchase was made based on trade outside the trading venue, through one transaction throughout the
year.
On 31 December 2023, the Company owned 5,000 shares with a total nominal amount of EUR 6,636.14, or 0.025% of the
Company's share capital, while on 31 December 2024 the Company owns 18,867 shares with a total nominal amount of EUR
25,040.81, representing 0.096% of the Company's share capital.
12
Expected development of the
group in the future
12.1. MAKING ANNUAL BUSINESS PLANS
12.2. THE GROUP'S R&D ACTIVITIES
The Group makes its business plans for each business year and a business overview for the
three-year period, for all areas of the Group's activities and individually at the level of each
company or each market, and ultimately at the consolidated level.
During 2024, the Group is engaged in expanding its business and occupying a larger and better
position in the market in goods and business volume., both domestic and foreign one.
The Group's strategy is to expand the range of products in the eld of wholesale and business
volume within the environmental business and production, as well as in the eld of the
automotive segment in the coming years.
The long-term goal at the level of the CIAK Group is to ensure stable and sustainable growth and
development.
The Group pays special attention to the development and introduction of new technologies, as
well as to additional training and training of high-quality and promising personnel who, through
the engagement of funds for additional education, enable the acquisition of new knowledge
necessary in the ght against the increasing competition.
Information on environmental protection and workers and information on key intangible
resources can be found in the Sustainability Report, which is an integral part of the Annual
Report.
23
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
Sustainability Report
2024
CIAK Grupa d.d.
Savska Opatovina 36
10090 Zagreb
+385 1 34 63 521
+385 1 34 63 522
+385 1 34 63 523
+385 1 34 63 524
+385 1 34 63 516 (Fax)
ciak@ciak.hr
www.ciak.hr
investitori@ciak.hr
Investor Relations
Sustainability Report
2024
www.ciak.hr
Sustainability report 2024. - CIAK Grupa d.d.
Sustainability report 2024. - CIAK Grupa d.d.
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
26
Introduction
1
In the course of 2024, there was no reported environmental
incident in the Group. The Group is continuously working on
improving environmental protection and promoting sustainable
development. Some of the measures that actively promote
sustainable development include the collection of waste oils,
waste car tires, batteries and other hazardous and non-hazardous
waste in appropriate containers and prepared for this purpose
in business facilities and premises. Some of the subsidiaries of
CIAK Grupa d.d., among other activities, are registered to perform
waste management activities and have the necessary permits
issued by the competent regulatory authorities of the countries
of the registered oce of the dependent undertakings.
The Management Board of the Group and the directors of the
subsidiaries are responsible for the implementation of the
objectives and strategy of sustainable business in the Group, and
the activities and information related to the implementation of
decisions, objectives and reporting are coordinated by the Human
Resources Department, the Occupational Safety Department, the
Environmental Protection Department, the Quality Department,
the Internal Audit Department and the Legal Department. The
Controlling Department oversees non-nancial reporting on
sustainability issues, ensuring compliance with the relevant
regulations governing this area.
The Group acts in good faith towards business partners,
employees and the entire social and business environment,
respecting good business practices.
The Group seeks to actively contribute to the United Nations
Global Sustainable Development Goals (SDGs), which were
adopted in 2015 as part of the 2030 Agenda for Sustainable
Development. Chapter SBM-3 - Signicant Impacts, Risks and
Opportunities and Their Interaction with Strategy and Business
Models lists the identied impacts of the Group on individual
objectives in accordance with the Group's strategy and business
operations.
Each company within the CIAK Group invests signicant attention
in taking care of the health of employees and safety at work.
The Group provides a comfortable and safe working space for
its employees. Identifying the risks of the work performed by
workers as well as the hazards that are present in the workspace
are a priority of the Group's business activities and policies. We
regularly conduct health and safety education and exercises, and
equip our employees with the necessary protective equipment,
thus inuencing the global goal of sustainability related to the
health and well-being of people.
The health and safety of workers is one of the topics covered by the
Group's Work Regulations, which also adopts provisions relating
to ensuring the privacy of workers, working hours, the right to use
annual leave, regulates the issues of salary supplements and the
duration of employment contracts, which is key to contributing to
Sustainability Goal 8.
The areas of the Group's activities that operationally create an
impact on the environment have been identied. The Group
collects data on energy consumption at the Group level in
order to inuence the reduction of total energy consumption
and greenhouse gas emissions, and we continuously evaluate
the possibilities of using renewable energy sources for the
consumption of facilities owned by the Group, which has
determined the contribution to the global sustainability goal of
the 13th Annual Sustainable Development Goal.
27
1
One of the initiatives in the retail business refers to reducing
the need for the use of PVC bags, with the aim of completely
eliminating their use in retail and business processes. Instead,
it is planned to use alternative more environmentally friendly
solutions.
The Group's main activities include wholesale and retail of spare
parts at the Independent Aftermarket (IAM, i.e. distribution of
spare parts and equipment) as well as waste management. Waste
management within the Group is carried out in accordance with
the legal regulations of the country in which the Group member
operates and includes the collection of waste oils, used car
tires, batteries and other hazardous and non-hazardous waste in
appropriately prepared containers and facilities of companies.
The entire CIAK Group is involved in the waste collection process.
The recycling of waste batteries takes place in the company
C.I.A.K. d.o.o., which collects waste lead-acid batteries collected
by members of the CIAK Group and other legal and natural persons
in Croatia and neighbouring countries, thus creating a strong
contribution to the 12th global goal of sustainability.
Within the Group, the Centre for Battery and Accumulator
Recycling in Zabok operates within company C.I.A.K. d.o.o.,
within which the activities of collecting and recycling batteries
take place. CIAK Group collects signicant quantities of lead-
acid batteries marketed on the domestic market. Furthermore,
in order to educate Croatian citizens about the importance and
possibilities of battery recycling, our goal is to introduce this
topic to as many students, elementary and high school students
as possible in the coming period. In this way, we want to increase
awareness of this topic and enable the young generations to
behave responsibly towards the environment.
Werecognizeactivitiesthathaveapositiveimpacton
businesssustainabilityandsocialresponsibilityaskeyinthe
Group'sbusinessstrategy."
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
28
1.1. GENERAL INFORMATION ABOUT THE REPORT
AND BASIS OF PREPARATION
CIAK Grupa d.d. prepares the Sustainability Report on a consolidated
basis for the Group companies on 31 December 2024.
The scope of the Sustainability Report is the same as in the Group's
Financial Statements.
The sustainability report was prepared in accordance with the
Corporate Sustainability Reporting Directive (CSRD) and the European
Sustainability Reporting Standards (ESRS) in Commission Delegated
Regulation (EU) 2023/2772 and the Accounting Act of the Republic of
Croatia.
The dual materiality assessment process includes the due diligence
process described in international instruments, namely the UN Guiding
Principles on Business and Human Rights and the OECD Guidelines for
Multinational Enterprises.
When assessing materiality, impacts and nancial materiality, the
criteria set out in ESRS 1 in sections 3.4 and 3.5 were applied.
The information to be provided in the sustainability statement
includes information on signicant impacts, risks and opportunities at
both upstream and downstream levels of the value chain. The focus is
on identifying them at the level of key activities throughout the value
chain in each segment.
Given that this is the rst reporting period to be carried out under the
ESRS, all previous sustainability information is not directly comparable
to the current report, nor has it been revised. This incomparability
stems from the differences in methodologies used in past reports
compared to the standardized approach to the ESRS. Precisely
because of the new methodology of data calculation in accordance
with the ESRS, the Group has implemented new ways of collecting data
that differ from previous methods, which enables more precise and
detailed reporting, but prevents direct comparisons with previously
published data in annual reports. Obtaining information on indicators
from the value chain has proven to be a challenging task with a certain
degree of uncertainty. Apart from the GHG emissions (Greenhouse Gas
emissions) Scope 3 indicators, the Group does not have any indicators
from the value chain. Given that there are no accurate indicators or
measurable data directly from the value chain, the Group was not able
to accurately assess the relevance of these sources to its value chain.
In the coming period, the Group will set up data collection systems from
its key stakeholders in the value chain (suppliers, business partners,
local communities, customers and end users) to improve the accuracy
and completeness of data coming from the value chain itself. Scope
3 greenhouse gas emissions are calculated based on an estimate by
applying appropriate calculation factors to nancial consumption
or collected volume data. Greenhouse gas emissions quantication
is subject to inherent uncertainty as a result of both scientic and
estimation uncertainty.
We are aware that the use of estimated data may result in certain
deviations from the actual values and our estimates depend on the
availability and quality of external data, which may vary depending on
the source. In view of the above circumstances, if signicant errors
or changes to the disclosures from this report occur, they will be
published in the following period.
• SBM3 40e Expected Financial Consequences
• E1_9 Expected nancial implications of signicant physical,
transition and climate-related risks
• E2_6 Expected nancial consequences of pollution-related
impacts, risks and opportunities
• E5_6 Expected nancial implications of impacts, risks
and opportunities related to resource use and the circular
economy
• S1_13 Training and skills development
• S1_15 Work-life balance
Below is a list of parts of the identied signicant topics or subtopics for which it is expected that they will be
gradually introduced into the scope of the report in the coming periods.
1.2. ROLE OF ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY AUTHORITIES
The role of the Management Board and the Supervisory Board in the implementation of sustainable business in CIAK Grupa d.d.
arises from legal obligations, internal acts such as the Statute and Code, corporate governance and social responsibility towards the
environment and society as a whole. Sustainable business means conducting business in a way that considers long-term economic,
social and environmental aspects.
MANAGEMENT BOARD
IVAN LEKO, President of the Management Board
DOMINIK LEKO, Member of the Management Board DALIBOR BAGARIĆ, Member of the Management Board
IVICA GREGURAŠ, Member of the Management Board
IVAN MILOŠ, Member of the Management Board
of CIAK Grupa d.d. can have a minimum of one and a maximum of ve members of the Management Board. If the Management Board
has more than one member, one of the members must be the President of the Management Board who represents the company
independently and individually, and the other members jointly with the President or another member of the Management Board. The
Board currently consists of ve members, namely:
All members of the Management Board of the Group are men. All members of the Management Board are independent.
1
29
1
Sustainablebusinessmeans
conductingbusinessinaway
thattakesintoaccountlong-term
economic,socialandenvironmental
considerations."
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
30
Members of the Management Board of CIAK Group have expert
knowledge and skills in the eld of sustainability factors,
which are the product of their long career and dedication to
the development of business processes. With its experience in
the establishment and development of many Group companies,
the Management Board has previously directed companies
towards sustainable business models, which includes strategic
acquisitions and regional presence. The management has formal
and practical knowledge in business analysis and business
planning, which includes the aspect of sustainability of business
operations. Extensive experience in commercial and sales
activities, focused on optimizing resources, increasing the
eciency of companies as well as increasing energy eciency.
The Management Board plays a key role in the management of
nancial risks and investments, which includes investments in
projects that support long-term sustainability. Through these
activities, the members of the Management Board of CIAK
Group continuously strive to integrate sustainability factors
into business processes, thus contributing to the long-term
competitiveness and socially responsible business of the Group.
The Management Board is obliged and authorized to undertake
all actions and make all decisions that it deems necessary for the
successful management of the company's affairs.
In accordance with the Articles of Association, the management
of the company's affairs includes decision-making for the purpose
of realization of business strategy, business plans and programs,
but also all factual and legal activities within the company and
for its benet. The Management Board conducts the company's
affairs at its own risk, ensuring the proper performance of all
activities and professional tasks. Operational and strategic
decisions made by the members of the Management Board must
be implemented and implemented at lower levels of management
and activities of other employees of the Group.
CIAK Grupa d.d. applies The Code of Corporate Governance
prepared jointly by the Croatian Financial Services Supervisory
Agency and the Zagreb Stock Exchange.
According to the aforementioned Code of Corporate Governance,
the duties of the Company's Management Board include key
responsibilities for ensuring successful and sustainable
operations. The management must develop and implement the
company's strategy and business plans, manage all business
activities and resources, and ensure the realization of the
company's core values and ethical principles. The Management
Board is also responsible for the selection and appointment of
senior management members, in order to ensure the expertise
1
Management
Board
President
of the
Management
Board
Member
of the
Management
Board for
Finance
Memeber
of the
Management
Board for
Sales and IAM
segment
Memeber
of the
Management
Board for
Procurement
and IT
Memeber
of the
Management
Board for
Ecology
31
and effective management of the company, as well as for the
implementation of effective risk management systems and
internal controls crucial to minimize potential threats to the
business and ensure stability.
The directors of subsidiaries, subsidiaries of the parent company,
are responsible for making decisions independently or with prior
consent, implementing strategies, managing the business and
ensuring compliance with the relevant legislation and policies of
the parent company.
Within the framework of these responsibilities and powers, the
Management Board plays a key role in managing and supervising
the impacts, risks and opportunities of ESG (environmental,
social and governance) factors, which are becoming increasingly
important for the long-term sustainability and competitiveness
of companies. In the context of ESG, the Management Board is
responsible for dening and integrating ESG objectives into
strategic planning and business processes, as well as ensuring
that the company manages risks responsibly and takes advantage
of opportunities arising from ESG factors
The Supervisory Board consists of 7 members, 4 of whom are
employees of the company. Members of the supervisory board do
not have an executive function. The Supervisory Board includes
one Chairman of the Supervisory Board, one Deputy Chairman of
the Supervisory Board and one workers' representative. Members
of the Supervisory Board are elected by the General Assembly of
the company, while one member of the Supervisory Board has
the right to be appointed by employees in accordance with the
provisions of a special law governing work and labour relations.
The selection procedure of the Supervisory Board is based
on the Companies Act and is aimed at ensuring objectivity,
professionalism and accountability in the supervision of the
company's operations.
The responsibilities and powers of the Supervisory Board
arise from the Companies Act and the Company's Articles of
Association. Members of the Supervisory Board have a key
responsibility to protect the interests of the company and its
shareholders. Sustainable business is becoming an increasingly
important interest of society and shareholders because it
contributes to the long-term growth and stability of the company.
Shareholders are increasingly recognizing sustainable business
as the key to maintaining competitiveness in the market,
attracting investment, and creating long-term value. Implicitly,
the supervision of the management of sustainability factors
(governance, environmental and social impacts of business
operations and the risks and opportunities arising from them)
falls within the scope of responsibility of the Supervisory Board.
The Supervisory Board has an important function of overseeing
the work of the Management Board and ensuring that the
organization operates in accordance with legislation, ethical
standards and the interests of all stakeholders. According to the
Articles of Association of CIAK Group d.d., within its competences,
the Supervisory Board has the authority to appoint and recall
the President and members of the Management Board of the
Company, to convene the General Assembly of the Company and
to examine the nancial statements that it determines together
with the Management Board of the Company. The Supervisory
Board submits a written report on the performed supervision to
the General Assembly and proposes the adoption of decisions
in accordance with the applicable legislation. In addition, the
Supervisory Board gives its consent to the decisions of the
Management Board when prescribed by law, the Articles of
Association or a special decision of the Supervisory Board. From
the above, it follows that the Supervisory Board plays a signicant
role in ensuring the sustainable operation of the organization
and overseeing the integration of sustainability into the strategy
and operational processes. The Supervisory Board must ensure
that the members of the Management Board have the necessary
knowledge and experience in conducting business in accordance
with the principles of sustainability and provides key guidance
and supervision over sustainable practices, promotes ethical
business and ensures that the organization successfully balances
the economic, social and environmental aspects of business.
In this way, the Supervisory Board not only contributes to the
long-term sustainability of the organization, but also to the
responsibility towards society and the environment.
Overseeing the setting of targets related to impacts, risks
and opportunities on sustainability factors involves a
multidisciplinary approach in which the different bodies of the
organisation (administrative, management and supervisory) play
a key role. The Management Board sets the direction and strategic
goals for the sustainability of the achievements, which it monitors
through regular reporting cycles and ad hoc reports.
The Supervisory Board has a key role in determining and
monitoring the achievement of the company's goals through
several key activities:
1
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
32
• Management evaluation: The Supervisory Board evaluates
and appoints the Management Board and may recommend
corrective actions or changes to the strategy.
• Setting goals and strategies: The Supervisory Board works
with the Management Board to dene the company's strategic
goals, including economic, environmental and social aspects.
• Regular reporting and meetings: The Supervisory Board
receives reports on progress, risks and achievements at
regular intervals.
• Audits and internal controls: Conducts oversight of internal
controls and engages external auditors to ensure compliance
with legislation and achievement of objectives.
Dedicated processes and controls to manage sustainability
impacts, risks and opportunities are integrated into business
functions. Sustainable practices are part of strategic planning.
The Management Board and Directors of CIAK Group companies
are responsible for identifying impacts on sustainability factors
in business processes and at the level of process activities
that can be inuenced and managed, using the knowledge and
inputs of professional departments. Procedures for identifying,
assessing and managing risks that may affect sustainability,
such as environmental risks (e.g. pollution), regulatory risks and
social risks (reputational risks related to social responsibility)
are implemented within the framework of the regular tasks and
activities of the company's organizational units such as the legal
department, internal audit, human resources or the ecology
department.
Dedicated controls include monitoring the effects at the level of
business segments where a signicant impact on sustainability
factors has been identied, through sustainability reporting or by
conducting internal control activities on the identied impacts.
Expertise in the eld of sustainability within an organization
is essential for the implementation of sustainable business
practices. At the Group level, knowledge and information related
to sustainable development issues are continuously transferred
to an increasing number of employees, primarily by central
services. The Group has successful cooperation with external
experts or consultants in the eld of sustainability, in order to
advise and continuously develop activities related to relevant
topics. In accordance with the scope of their activities, certain
organizational units play a key role in the implementation and
monitoring of the application of sustainable practices. The legal
department ensures that the organization operates in accordance
with the applicable legislation, while internal audit conducts
internal control activities to ensure that sustainable practices
are properly implemented in the organization, including internal
control of business processes. The human resources department
is responsible for employee development and fostering a culture
of sustainability within the organization. Within the ecology
department, the ecology business segment (waste management
and recycling) contains specialized knowledge on environmental
protection, resource management and sustainable practices. All
of these departments within the organization have a signicant
role in providing expert information to the Management Board in
order to make decisions based on relevant and timely information.
The skills and expertise of management and supervisory bodies
are essential to manage signicant sustainability, risks and
opportunities of a company, as they enable an organisation to
identify, analyse, assess and respond to environmental, social and
economic challenges and opportunities.
The Management Board implements the goals and strategy of
sustainability and continuously analyses the need for additional
investment in training or training of employees, as well as the
possibility of new employment or hiring external associates, if
required by the specicity and scope of the strategy. This process
ensures that the organization possesses the necessary expertise
and resources to successfully implement its goals.
33
1.3. REPORTING TO MANAGEMENT AND SUPERVISORY
AUTHORITIES ON SUSTAINABILITY MATTERS
Each member of the CIAK Group Management Board is
responsible for integrating sustainability factors into
the business strategy within their competence, ensuring
compliance with long-term sustainability goals. Directors
of companies within the Group have a key responsibility for
implementing sustainable practices in their daily business
activities, including reducing negative environmental impact,
improving social conditions and contributing to sustainable
development goals. The directors regularly report on the
progress of these initiatives to the Management Board of CIAK
Group through direct meetings and periodic reports, enabling
monitoring and adaptation of the strategy in accordance with
the results and challenges achieved.
The Management Board of CIAK Group is regularly informed
about signicant impacts, risks and opportunities related to
the effects on the environment, society (stakeholders) and
the status of compliance with legislation and implemented
standards, as well as on the effectiveness of policies,
measures, indicators and target values. Notication is carried
out through regular meetings, presentations, reports and
analyses prepared by professional departments and directors
of companies within the Group. The key departments in this
process are the Department of Legal Service, Internal Audit,
Ecology, Human Resources and the Department of Controlling.
These departments play a key role in shaping and implementing
sustainability goals and in guiding sustainable initiatives
within the organization. The Supervisory Board also receives
information on sustainability factors through meetings
with the Management Board and regular reports, which are
supplemented by specic information necessary for oversight.
These channels enable the Supervisory Board to monitor
progress in the eld of sustainability, understand challenges
and support the long-term sustainability of the business.
The Group's management and supervisory bodies carefully
consider impacts, risks and opportunities when overseeing
strategy, signicant transactions and risk management.
Through regular reporting and analysis processes, it is
ensured that the Group's decisions are aligned with long-
term sustainability and responsible business goals, as well
as the balance of the company's short-term goals and the
implementation of long-term sustainable business guidelines.
In the reporting period, the management and supervisory bodies
of CIAK Group dealt with key impacts, risks and opportunities in
the eld of sustainable business. Options for the implementation
of energy eciency measures in order to reduce nancial and
negative environmental impacts were considered. Further
development of waste management and recycling activities is
a priority, with a special emphasis on reducing pollution and
responsible waste disposal, thus contributing to the Group's
global sustainability goals. In addition, steps have been taken
to implement ISO quality standards in the operations of certain
Group companies, which enables raising the level of services
and increasing the environmental friendliness of products.
New partnerships with suppliers have been developed in order
to meet the needs of consumers and provide environmentally
friendly products on the market. New requirements have been
introduced in reporting processes that enable more thorough
monitoring of the impact of business on sustainability factors,
thus improving transparency and long-term sustainable
development of the Group.
Furtherdevelopmentofwastemanagementandrecyclingactivities
areapriority,withaspecialemphasisonreducingpollutionand
responsiblewastedisposal,thuscontributingtotheGroup'sglobal
sustainabilitygoals."
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SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
34
1.4. INTEGRATING SUSTAINABILITY RESULTS INTO INCENTIVE SCHEMES
1.5. DUE DILIGENCE
1.6. RISK MANAGEMENT AND INTERNAL CONTROLS
In accordance with the applicable legislation and guidelines
of supervisory institutions, the CIAK Group has adopted an
ordinance regulating the remuneration of members of the
Management Board. The remuneration of the members of the
Management Board is divided into xed and variable income.
The adoption of the Sustainability Strategy envisages the
denition of incentives for members of managing bodies
related to climate impact issues. To align incentives related to
sustainability issues with the Group's ESG strategy, appropriate
strategic ESG goals for Management Board members will be
considered and dened in the coming periods.
Due diligence is the process by which companies identify,
prevent, mitigate and describe how they address actual
and potential negative impacts of their operations on the
environment and people. Due diligence is an ongoing practice
that responds to change and can cause changes in the context
of a company's strategy, its business model and its activities,
business relationships, operations, procurement and sales.
This process is described in international instruments, namely
the UN Guiding Principles on Business and Human Rights and
the OECD Guidelines for Multinational Enterprises. The outcome
of a company's sustainability due diligence process is the basis
for assessing its signicant impacts, risks and opportunities.
The due diligence process in the process of preparing the double
materiality analysis was carried out through a series of activities
that determined the potential negative effects of the company
itself on the environment or society. The goal of the procedure
itself is to nd ways in which these effects can potentially be
prevented or mitigated, and the result is a document that
describes all identied actual and potential negative (but also
positive) effects of business on the environment and people.
Potential negative impacts identied in environmental impact
arise from the nature of the activity in which the Group operates
(waste management and recycling). In the process of assessing
the materiality of the impact of the local community and
other relevant stakeholders, they were interviewed in order to
assess the materiality of the impact and to provide the Group
with insight into further necessary measures. However, the
risk has been identied as minimal and potential because the
Group implements additional measures in addition to legally
binding measures to prevent emissions, adequately dispose
of waste and prevent incidents. In the event of extraordinary
circumstances, the Group, in cooperation with public services,
conducted exercises to minimize the consequences in such
cases.
CIAK Group's sustainability report is a synthesis of data collected
from four key sources, providing a comprehensive view of
business in the context of sustainability. These sources include
the Double Materiality Analysis Study, the draft sustainability
strategy of the CIAK Group, internal documents (regulations and
policies) and databases for generating quantitative data. In the
reporting process, the activities and responsible persons are
clearly dened, while the risks that may affect the nal report
are carefully identied. Potential risks include the omission of
key information for estimating materiality, as well as incomplete
data collection or inaccuracy of calculations. To prevent these
risks, a working group for ESG issues has been formed, which
includes employees of central departments and is responsible
for communicating with other employees within its area of
activity and controlling the accuracy of the collected data.
In the case of new business developments, including
acquisitions, it is important to immediately identify whether
new sustainability impacts arise and, if so, to conduct a
detailed analysis of those impacts to determine the need to
adjust the sustainability strategy and disclose them in the
Sustainability Report.
Key steps in risk management within the sustainability
reporting process include monitoring changes and dening
responsibilities, to ensure that the building blocks of the
Sustainability Report are updated in a timely manner. Also, all
internal documents that serve as a source of qualitative data
must be structured in a way that allows easy connection to
the Sustainability Report. If there are changes or additions to
these documents, the department in charge of preparing the
Sustainability Report must be informed about these changes in
a timely manner in order to be able to implement them in the
reporting structure.
In all iterations of new impact analyses and phases of
sustainability reporting, the Management Board is informed
about the risks identied, the responsible persons and the
measures taken to reduce or eliminate these risks.
1
35
1.7. STRATEGY AND OVERVIEW OF THE GROUP'S BUSINESS MODEL
Due to the need to make business decisions and assess
business, CIAK Group's business is divided into several
segments. A segment is a distinctive component or part of
the Group that is engaged in the sale of related products and
services and is subject to risks and rewards that are different
from those applicable to other segments. Based on such
business organization, the Group makes decisions on the
allocation of resources to individual business segments and
evaluates their eciency.
The Group's business is divided into ve segments, namely:
• distribution of auto parts;
• distribution of batteries, oil, etc.;
• freight program;
• ecology (waste management and recycling); And
• wholesale.
1
IAM
ECOLOGY
WHOLESALE (Other)
Auto parts
Freight
program
Batteries
and oils
Recycling
Waste
management
Wholesale
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
36
The auto parts distribution business segment includes the purchase and sale of auto parts on the IAM
market, i.e. auto parts for sale to customers who do not visit authorized service networks (OES). A typical
assortment includes brakes, lters, wipers, shock absorbers, lights, suspension parts, etc., but also parts
such as batteries, tires, oils, antifreeze, etc.
Customers from the segment of distribution of auto parts are mostly legal entities and crafts, and the largest
percentage of customers are service centres, mechanic shops, smaller dealers, etc. The business is mostly
focused on retail customers, and the company has established a call centre and a web store through which
online orders are enabled. In addition to the above, customers also have at their disposal e-mail inquiries and
the possibility of communication through social networks such as Facebook and Instagram, as well as other
sales and service tools.
The cargo program business segment includes the purchase and sale of parts for trucks and commercial
vehicles on the IAM market. The customers of this segment are mostly legal entities and craftsmen such as
car carriers, large eet customers, mechanic workshops, smaller dealers, etc.
These segments make up the IAM group of segments. Processes within the segments of the IAM Group begin
with procurement, where attention is paid to the selection of suppliers, dening procurement conditions
and monitoring the compliance of products with legal and industry standards. The next key step is transport
and distribution, where the timely and safe transport of products to warehouses or points of sale is ensured.
Logistics processes include warehousing and inventory management to ensure the continued availability of
items and goods in the market.
Through centralized management, CIAK Group coordinates all activities, from operational to strategic,
including making business decisions, complying with regulations and providing technical support to
customers. Sales activities in the IAM Group are divided into retail, which is focused on end users, and
wholesale, which deals with the supply of services and large business entities such as eet customers. This
division allows for adaptation to different customer needs and specic market segments.
CIAK Group's sustainability goals in the IAM segment are aimed at reducing the negative impact on the
environment and improving social responsibility. Where applicable, the Group optimises energy resources
and acts to reduce greenhouse gas emissions. Also, within the framework of standard business processes,
priority is given to the implementation of activities related to battery recycling. Also, the Group companies
encourage social responsibility by emphasizing the importance of applying sustainable and ethical practices
in the supply chain and initiating activities related to the provision of education to partners, but also through
continuous engagement in the community. Through these goals, it contributes to global sustainability goals
and ensures the long-term sustainability of the business.
The battery and oil distribution business segment includes the sale of accumulators, industrial batteries,
oils, lubricants and other automotive supplies such as brushes, additives, etc. (all together the so-called
consumables). A signicant part of sales in this segment relates to intra-Group sales.
In this segment, sales are organized through the following sales channels:
• wholesale to unrelated companies on the IAM market;
• wholesale to legal persons and crafts that are mainly also end-users product;
• wholesale to companies that have service stations; and
• retail through a subsidiary specialising in the trade in batteries
1
37
The ecology segment refers to two sub-segments - recycling and waste management.
The recycling business segment takes place in a subsidiary company, which operates on the Croatian market. In
the recycling process, they produce processed lead ingots, i.e. components for the production of new batteries.
The products of the observed segment are purchased by foreign customers as raw materials for the production
process of new batteries. Based on multi-year cooperation agreements, the Group partners and suppliers in the
battery and oil segment.
The waste management business segment takes place in the markets of Croatia, Bosnia and Herzegovina, Serbia
and Slovenia, where there are larger storage capacities in the markets of Croatia and Bosnia and Herzegovina. The
waste management process includes the activity of collecting, transporting, recovering and disposing of hazardous
and non-hazardous waste, including the supervision of these processes, including the remediation of contaminated
sites and the cleaning and maintenance of industrial installations. Part of the collected waste is handed over to
authorized processors in the country or abroad, and part is processed at the locations of the company C.I.A.K.
d.o.o. After treatment, part of the waste is handed over for further recovery/disposal procedures to authorized
processors in the country or abroad. In this sub-segment, the Group generates revenues from customers to whom
it disposes of waste and, to a lesser extent, from customers for whom the collected waste serves as an energy
source in the production process (such as cement plants, power plants, etc.).
The main activities of these segments include the collection of waste accumulators and batteries and all types of
waste from different locations. After collection, the transport of waste to recycling centres or to waste management
facilities is carried out in accordance with strict safety and environmental standards. The next step is the process
of recovery/recycling or waste disposal
Centralized management within the CIAK Group in this segment includes ensuring compliance with legal
regulations, obtaining the necessary permits and reporting to the competent authorities. Educational campaigns
are also carried out in these segments with the aim of raising awareness of the importance of recycling among the
local community, schools and business partners.
One of the Group's key goals is to improve battery collection and recycling capacities by installing new equipment
that will enable an increase in capacity, which will increase the quantity of recycled batteries and consequently
reduce environmental risks associated with improper battery disposal and prevent soil and groundwater pollution.
CIAK Group is proled on the market as a signicant collector and processor of hazardous and non-hazardous waste
in Croatia. The Group sees further business development in the creation of long-term partnerships with service
users and cooperation with European hazardous waste management companies, which operate in accordance with
EU environmental regulations and high operational standards in waste recovery procedures.
The wholesale business segment includes wholesale of car supplies, textiles and garden program. The key
customers in the observed business segment are large retail chains in the Republic of Croatia.
Procurement in this segment is focused on selecting reliable suppliers and negotiating terms that ensure quality
and more favourable delivery costs. After procurement, there is a transport and distribution phase, where a
combination of in-house logistics capacities and partner logistics companies is used to ensure timely delivery of
products to large customers.
Warehousing and logistics form an important part of the process, with a focus on organizing warehouse space
and managing inventory to meet customer needs. Centralized management within the CIAK Group enables the
coordination of all activities of this segment, including technical support, business decision-making and monitoring
of sales performance.
Wholesale activities are focused on eet customers, services and retail chains, with an emphasis on maintaining
long-term business relationships, providing technical support and adapting to the specic needs of customers.
The Group operates in the markets of the Republic of Croatia, Bosnia and Herzegovina, the Republic of Serbia, the
Republic of Slovenia, Montenegro and the Republic of North Macedonia and the Republic of Kosovo.
1
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
38
Industry Segment Number of employees (HC)
Batteries, oils, etc.
197
Auto program - passenger cars 2,609
Ecology 188
Freight program 239
Management 143
Wholesale 33
Total Employees 3,409
Market Number of employees
Croatia
1,579
Serbia 825
Bosnia and Herzegovina 624
Montenegro 199
Slovena 132
Macedonia 46
Kosovo 4
Total number of Employees 3,409
Auto program
- passenger
cars
Batteries, oils,
etc.
Freight
program
Ecology Wholesale Management
Intersegmental
eliminations
Total
operating
revenues
of the
Group
265,708
69,495 39,176 30,308 13,768 6,509 (65,532) 359,432
Number of employees by segments on 31 December 2024.
Number of employees by markets on 31 December 2024.
Revenue by segment in 2024 (in EUR 000)
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39
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
40
1
1.8. GROUP STAKEHOLDERS
CIAK Group is a dynamic and innovative business
organization that operates in various industries
with the aim of providing high-quality products
and services. With a focus on sustainability and
social responsibility, the Group connects with all its
stakeholders – customers, employees, suppliers,
shareholders and local communities – to develop
business strategies that respond to their needs and
market challenges.
CIAK Grupa d.d. operates in an environment that
includes various internal and external stakeholders
who inuence the company's strategic and
operational decisions. Below is an overview of the key
stakeholders:
Shareholders and investors are key to the formation
of the Group's corporate goals because their
interests impose the goal of continuous growth of
the company's value and responsible management
of business risks, including the establishment of
sustainable business. Shareholders and investors
are crucial in securing capital and expect consistent
returns on their investments. CIAK Group, as a joint
stock company whose shares are listed on the Zagreb
Stock Exchange, regularly communicates nancial
results and provides the general public with access
to all mandated disclosures as well as key business
decisions made.
Suppliers are looking for stable demand for products,
timely payments and long-term relationships. Car
parts manufacturers, battery manufacturers, and
waste management equipment suppliers form the
backbone of the company's business. CIAK Group
relies on on-time delivery and high-quality assortment
to meet customer needs and meet safety standards.
The customers of the CIAK Group vary by segment,
and the Group’s operations are conducted through
B2B and B2C sales channels. The interests of CIAK
Group's customers are focused on quality, reliability
and eciency, with an increasing emphasis on
environmentally friendly products and services. In the
segment of the sale of car parts and the sale of cargo
programs, customers are looking for parts for vehicle
repairs, with an emphasis on the availability and
breadth of the range in accordance with market needs.
In the segment of battery and oil sales, the technical
characteristics and quality of products can have the
greatest impact on demand. In waste management,
legal entities are looking for solutions for ecient
waste disposal. In recycling, battery manufacturers
want affordable production input and environmentally
friendly options, with a long-term partnership with
the CIAK Group, which is the buyer of their batteries.
In wholesale, retail chains are looking for competitive
and reliable products for distribution. Customers in all
segments expect quality products and services that
meet their needs at the most acceptable price, regular
availability and timely delivery, with a guarantee of
exercising their rights in after-sales activities.
The interests of employees include job security,
adequate salaries, opportunities for professional
development and safe working conditions. Operating
throughout Southeast Europe, human capital is the
main factor in CIAK Group's business. Employee
satisfaction and skill development have a direct
impact on customer service, operational eciency,
and overall productivity.
The government and regulatory bodies require CIAK
Group to comply with environmental laws, tax and
other relevant regulations, contribute to employment
and comply with trade regulations. CIAK Group
operates in a strictly regulated sector, especially
in environmental protection services and waste
management. The competent authorities monitor
the company's compliance with positive legislation
on waste management, recycling and the handling of
hazardous materials.
Local communities and environmental groups are
included in the list of types of stakeholders due
to CIAK Group's environmental impact and waste
management practices and contribution to the local
economy. Waste management activities and recycling
operations can have an environmental and social
impact on local communities.
The Group actively engages with stakeholders to
ensure the implementation of responsible and
sustainable business practices.
41
1
COOPERATION WITH KEY STAKEHOLDERS
CIAK Grupa d.d. maintains long-term and stable relationships
with key stakeholders at all levels of the value chain, creating
mutual benets through responsible business and high-quality
standards.
Cooperation with suppliers
The Group demands high quality standards from its suppliers,
including compliance with environmental and safety standards,
thus ensuring competitive and reliable products. In addition, it
regularly collabourates on innovation and market adaptation,
developing new technologies and improving existing products.
The model of cooperation with battery suppliers also includes
the purchase of lead from the recycling process, which achieves
environmental and economic benets.
Purpose: To ensure high standards of quality, environmental
friendliness and safety, and to develop innovative solutions that
meet market requirements.
Outcome: Creating long-term, reliable business relationships that
enable competitiveness in the market. Environmental initiatives,
such as lead recycling, bring economic and environmental
benets, reducing the negative impact on the environment.
CIAK Auto Fleet Management and Academy
Through the CIAK Auto Fleet Management program, the Group
provides high-quality spare parts and services according to
the latest standards. With the establishment of the CIAK Auto
Academy in 2017, the Group provides professional training for
car mechanics and mechatronics, and from 2022, education is
available online.
Purpose: To provide quality spare parts and services according
to the latest industry standards and to invest in the professional
development of customers, which increases their expertise and
eciency.
Outcome: Increasing the quality of services, expertise of partners
and competitiveness in the market. Online education provides
access to a wider audience, thereby expanding the inuence and
educational standards in the industry.
Sustainable business and responsible waste
management
Cooperation with customers through retail battery purchase
centres enables safe and responsible management of waste
batteries, reducing the negative impact on the environment and
creating the opportunity for reuse of materials.
Purpose: To encourage responsible management, reducing the
negative impact on the environment and enabling the reuse of
materials.
Outcome: Signicant contribution to sustainable business,
reduction of environmental footprint and creation of circular
economic value. This approach strengthens the company's image
as a responsible business entity.
Collabouration with employees
CIAK Group encourages daily and open communication with
employees and investment in their development, which increases
productivity and loyalty. The "INTRANET" provides access to
important information, and the ONBOARDING process facilitates
the adaptation of new employees.
Purpose: To increase employee engagement, motivation and
productivity through open communication and investment in
their professional development.
Outcome: Employee loyalty increases, and their greater
motivation and professional development result in better work
performance and a lower turnover rate. Transparency and support
strengthen the organizational culture.
Cooperation with public services and regulatory
authorities
The group cooperates with public services through emergency
preparedness exercises, thereby improving the speed of
response and eciency in protecting health and the environment.
It also cooperates with regulatory bodies through legally required
reports and inspections.
Purpose: To ensure compliance with regulatory requirements
and increase eciency in crisis situations, as well as in the
protection of health and the environment.
Outcome: Improved security and regulatory compliance. A faster
response in emergency situations allows the company to remain
responsible towards society and the environment, thus reducing
the risk of legal and environmental incidents.
Engaging with the community and stakeholders
The Group is actively involved in socially responsible projects,
such as the collection of packaging waste from plant protection
products, and cooperation with shareholders takes place through
regular reports and the work of the General Assembly.
Purpose: To get involved in socially responsible projects that have
a positive impact on the community and to ensure transparency
in communication with shareholders.
Outcome: Strengthening relations with the local community
and shareholders, which contributes to the positive image of
the company and its long-term stability. Activities related to
environmental protection and social initiatives raise social
responsibility and encourage the engagement of all stakeholders.
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
42
Withafocusonsustainabilityandsocial
responsibility,theGroupconnects
withallitsstakeholders–customers,
employees,suppliers,shareholdersand
localcommunities–todevelopbusiness
strategiesthatmeettheirneedsandmarket
challenges."
43
INCORPORATING STAKEHOLDER VIEWS INTO CIAK GROUP'S OPERATIONS
CIAK Group recognizes the importance of
including the views of its key stakeholders –
customers, suppliers, employees, shareholders
and the local community – in the development
of
its business strategy. This approach enables
the Group to develop sustainable business
models that not only meet market needs, but also
respond to environmental and social challenges,
thus ensuring long-term competitiveness and
contributing to the sustainable development of
society and the environment.
Customers
CIAK Group regularly conducts market research
to collect feedback on the needs and
satisfaction of its customers. This feedback
allows the group to work on improving the range
and quality of service, adapted to changing
market requirements and legal regulations.
Also, the company's marketing and sales
strategies are based on analyses of customer
attitudes, which ensures precise
communication and effective promotion of
the assortment.
Suppliers
CIAK Group maintains long-term
partnerships with suppliers, which includes
joint contribution to the improvement of the
supply chain process, improvement of
assortment quality and cost optimization.
The Group also actively cooperates with
suppliers on environmental initiatives,
including the use of environmentally
friendly materials, which contributes to the
sustainability of the business. Regular meetings
and dialogue with suppliers enable better
productivity, safety and quality in the production
process.
Employees
Employees are key stakeholders in the CIAK
Group, and their involvement in strategic decision-
making is reflected through surveys, team
meetings and
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
creative workshops. The Group regularly develops
training and professional development programs,
ensuring that employees have the necessary skills
to face new market challenges. Also, management
maintains a transparent dialogue with employees,
which allows strategic goals to be in line with their
needs and organizational culture.
Shareholders
CIAK Group regularly informs shareholders about
business results, strategic plans and nancial
indicators, ensuring transparency and trust.
The Group aligns its business strategy with the
interests of shareholders, with an emphasis on
long-term return on investment through business
diversication, expansion into new markets and
optimization of operations.
Local community
CIAK Group actively contributes to the
development of the local community by supporting
social initiatives, such as donations, educational
programs and environmental actions. The Group
holds consultations with local authorities and
organizations to better understand their needs and
incorporate them into its strategic plans. Long-
term relationships with local stakeholders allow
for better integration into the local economy and
community stability.
The management and supervisory bodies of CIAK
Group were informed of the views and interests of
the affected stakeholders regarding the company's
sustainability-related effects through regular
meetings and reports of expert departments
within the Group. These mechanisms ensure that
administrative, management and supervisory
bodies are informed in a timely manner about the
needs and interests of stakeholders, allowing
for decision-making in line with sustainability
principles.
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SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
44
1.9. SIGNIFICANT IMPACTS, RISKS AND OPPORTUNITIES
CIAK Grupa d.d. conducted an analysis of activities within different
business segments with a focus on identifying key impacts, risks
and opportunities. The analysis is the basis for the formation of
the sustainability strategy of CIAK Grupa d.d.
When formulating corporate goals and strategy, CIAK Group
considers the effects of its business activities on sustainability
factors, including environmental, social and economic aspects.
Based on these identied impacts, the Group integrates
sustainability goals into its strategy, ensuring that all business
processes are geared towards reducing negative environmental
impact, managing resources responsibly, and strengthening
social responsibility. These sustainability goals are becoming
a key component in shaping a homogeneous business model, in
which sustainable business practices are consistently applied
in all business segments. In this way, CIAK Group consolidates a
strategy that enables long-term sustainability and growth, while
maintaining a balance between business and sustainability goals.
In accordance with the requirements of ESRS 1 3.3 point 39 and
3.4 point 43, a detailed analysis was carried out when identifying
and assessing the impacts, risks and opportunities in the
company's value chain, in order to determine their materiality.
The focus of the analysis is on areas of action where these
impacts, risks and opportunities are likely to arise, based on
the nature of the activities concerned, business relationships,
geographical features or other factors. The identied effects on
the environment or people can be actual or potential, positive
or negative. Ciak Grupa d.d. implements the requirements of all
positive processes that regulate the same, quality certicates
and additional measures in order to establish sustainable
business and development, which is why most of the negative
effects remain at the level of potential in the event of certain
extraordinary circumstances.
The key aspects of the Group's environmental impact have
been identied within the ecology business segment, which
includes waste management and recycling, and at the level of the
logistics and distribution process. A certain impact has also been
identied in the IAM segment through trading activity in the auto
parts industry.
Signicant activities of the Group in terms of climate change
impact and energy eciency management have been identied
as the activity of installing solar panels at the level of the most
energy-intensive business segments and at locations where
the infrastructure of facilities allows it, as well as the activity of
measuring energy consumption for the purpose of optimizing
energy consumption at the locations of the largest company
of the Group and in terms of the operational processes of the
companies that consume the most energy (CIAK Auto d.o.o. RH
and CIAK d. o.o. RH).
To make a credible assessment of the environmental impact,
and subsequently the risks and opportunities for the Group, it is
important to understand the recycling and waste management
procedures. The recycling process is carried out by the company
C.I.A.K. d.o.o. on the Croatian market. In addition to C.I.A.K.
d.o.o., other waste management procedures (storage, certain
recovery procedures and transport of waste) are performed by
other companies of CIAK Grupa, which operate in the segment of
ecology in the domestic and market sectors.
The recycling process includes the jobs and activities of recycling
lead-acid batteries and accumulators. Recycling takes place
at the Battery and Accumulator Recycling Centre in Zabok and
includes sorting and recovery of old accumulators during the
production of lead ingots.
The waste management process includes the collection,
transport, recovery and disposal of hazardous and non-hazardous
waste, including the remediation of contaminated sites and
the cleaning and maintenance of industrial plants. Part of the
collected waste is handed over to authorized processors in the
country or abroad, and part is processed at the locations of
C.I.A.K. d.o.o. After treatment, part of the waste is handed over for
further recovery/disposal procedures to authorized processors in
the country or abroad.
By the nature of the activities in question, certain emissions are
generated at the level of the operational part of the process for
the purpose of minimizing or annulling, which are subject to a
great number of legal and internal measures.
CO2 emissions are monitored in the ecology segment at the level
of the recycling process. Greenhouse gas emissions, including
CO2, are monitored in the company C.I.A.K. d.o.o., Recycling
Centre in Zabok in accordance with regulations. In order for CO2
and GHG emissions to be within the legally dened or accepted
values, a number of measures have been implemented in
accordance with positive regulations and environmental permits,
as well as internal measures that include the procurement of high-
performance technology, the implementation of management
standards that provide guidelines for harmonizing all activities
with environmental standards and improving the sustainability of
IMPACTS, RISKS AND OPPORTUNITIES
CLIMATE CHANGE AND ENERGY EFFICIENCY
1
45
The waste management and recycling process has been identied
as a signicant activity through which the Group inuences the
latter sustainability factor.
In the ecology segment, environmental impacts occur in terms of
emissions to water and air, while emissions to air are exclusively
related to the recycling process. Water from this production
process is disposed of as waste and there are no direct discharges
from the production process, while the polluted substances that
can be found in potentially contaminated rainwater from asphalt
surfaces must be within the set limit values.
To keep the emissions in these processes within the legal limit
values and values set by the environmental permit, as well as
to protect the employees involved in the process, a range of
technological, operational and regulatory measures have been
implemented. These measures include adequate provision of
space, the pursuit of implementation of modern technologies
to reduce emissions, the development of appropriate control
and monitoring infrastructures, and effective training and
management, as well as occupational safety measures. By
applying these environmental and employee protection measures,
the impact on the environment and employees is minimal and the
risks that arise from this impact are signicantly or completely
eliminated, and the implemented procedures and physical
restrictions contribute to the reduction of greenhouse gases, the
prevention of pollution and the safety of employees.
At waste management sites, extraordinary events can potentially
occur due to the human factor, disruption of the technological
process or due to natural disasters. Exercises are being conducted
with the competent authorities in order to test the procedures
and speed of action in accordance with the regulations so that
the impact on people and employees in the event of extraordinary
events is minimal.
Waste transportation activities involve the risk of extraordinary
events under certain exceptional circumstances, such as trac
accidents. Waste transportation carries risks for drivers and the
environment in specic emergency situations, particularly when
dealing with hazardous waste, and requires special attention and
appropriate measures to mitigate these risks. Depending on the
type of waste, transport conditions and legislation, the procedures
are carefully planned and implemented to ensure the safety of
drivers, the public and the environment. The transport of waste
is regulated through several key laws and regulations, including
POLLUTION
processes (ISO standards), control and monitoring of emissions.
The emission monitoring system contributes to systematic
controls, i.e. enables quality monitoring and reporting of
emissions and air quality parameters of the plant.
The activity of installing solar panels in Zabok also contributes to
the reduction of emissions. Solar-generated electricity generates
signicantly fewer CO2 emissions compared to traditional energy
sources such as fossil fuels (coal, oil, gas).
CO2 emissions also occur at the level of the logistics and
distribution process in all business segments. Measures to check
the roadworthiness of vehicles and reduce emissions from
vehicles include a range of legal regulations and preventive
actions, successfully integrated into the company’s business
processes. All vehicles used by the Group to perform their
activities undergo regular technical inspections where the
amount of exhaust gases is tested. Euro standards, which regulate
the maximum permissible gas emissions for vehicles, dene the
criteria when testing exhaust gases at a technical inspection. The
Group, guided by the principle of prudent management, regularly
modernizes its eet and purchases new vehicles manufactured in
accordance with Euro 5 and Euro 6 standards.
The implemented measures signicantly contribute to the
reduction of CO2 and other greenhouse gas emissions and result
in minimal negative impact on the environment.
The positive effect of the battery recycling process in the context
of climate change stems from the reduction of the need for
mining and processing of raw materials used in the production of
new batteries, which requires large amounts of energy and leads
to more realized greenhouse gas emissions, while the recycling of
raw material has a positive impact on these aspects.
Through the installation of solar panels in locations where
the structure of the building allows it, the positive effect is
multiple. Solar panels produce clean, renewable energy, reducing
dependence on fossil fuels and greenhouse gas emissions.
The activity contributes to decarbonization, climate change
mitigation and sustainable use of resources using renewable
energy sources.
Measuring energy consumption at the level of signicant Group
companies provides the opportunity to manage consumption and
have an impact on reduced greenhouse gas emissions.
The identied nancial risks relate to the possibility of incurring
expenditures for the maintenance, acquisition or upgrade of
assets to ensure compliance with relevant regulations or internal
decisions that contribute to the creation of positive effects on the
climate and the environment.
The nancial opportunity arises from the possibility of
implementing measures to reduce greenhouse gas emissions and
contribute to energy eciency, which can also be reected in the
Group's nancial result.
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the ADR (Accord européen relatif au transport international des
marchandises Dangereuses par Route), international regulations
relating to the activities of transport of dangerous goods, which
also apply to the markets in which the Group performs these
activities.
However, the waste management activity is primarily a positive
effect of the Group because it implies proper management
of hazardous and non-hazardous waste (such as batteries,
chemicals, oils, electronics), which prevents soil, water and air
pollution. Waste management through recycling reduces the
need for mining new raw materials, which also reduces global
industrial pollution. The Group annually manages a signicant
amount of hazardous and non-hazardous waste, has the
necessary premises, equipment and human resources for the
effective implementation of waste management activities, thus
contributing to the reduction of the negative impact on the
environment. The company collaborates with a large number
of business entities, from which it daily collets, transports and
disposes of both hazardous and non-hazardous waste.
The Group contributes to the reduction of pollution through
the remediation of contaminated sites. Remediation of
contaminated sites contributes to environmental conservation
by removing pollutants from soil, water and air, reducing risks
to ecosystems and human health, and has a positive impact
on biodiversity, improves water quality and enables safe land
reuse. In addition, greenhouse gas emissions are mitigated by
stabilising ecosystems. Remediated sites are often turned into
green spaces, which benets both the environment and the
community, and the activity as such is in accordance with EU
environmental regulations that encourage the rehabilitation and
revitalization of natural habitats.
As business in the waste management segment is a highly
regulated activity, changes in regulations may require
certain measures that require investments in infrastructure
improvement, change of business practices, or procurement of
environmentally friendly technologies.
CIAK Group has the relevant permits and certicates for
performing waste management activities. The activity
contributes to the minimization of pollution and harmful
emissions and reduces the need for the use of new resources
and is an example of implemented circular economy processes.
This can have a positive impact on the price of the Group's
securities, the possibility of more favourable lending, the creation
of new partnerships and a better reputation of the Group, which
represents a nancial opportunity for the Group.
The CIAK EcoCycle program encompasses a range of business
activities that serve as a positive example of the implementation
of circular economy processes.
The process of collecting old batteries also affects the proper
management of waste lead-acid batteries. It is an example of a
circular economy and shows the alignment of environmental,
economic and development goals. Points of sale sell new and take
over old waste batteries. Also, in vehicle maintenance services
and car repair shops, new batteries are installed, and old ones
are taken over. The collected batteries at the recycling centre
are used to extract lead, which can be used as a raw material to
produce new batteries.
The development of this closed system for recycling accumulators
and batteries reduces the amount of waste, thus reducing the
negative impact on the environment and contributing to the
conservation of natural resources. In addition, sustainable
circular waste management is promoted. Manufacturers of lead-
acid batteries are also buyers of recycled lead. The Group sells
lead-acid battery ingots to its suppliers as input raw material, and
buys new, nished batteries from them, which is an outstanding
example of the circular economy. Recycling batteries prevents
hazardous substances from spilling into the environment. Waste
recycling reduces the amount of waste that ends up in landlls.
Recycled materials can be reused in production, which reduces
energy costs and greenhouse gas emissions. CIAK Group has
all the necessary permits, as well as the ISO 14001 certicate,
which ensures that the process is carried out in accordance
with environmental and safety standards and environmental
legislation. Through the above, the potential negative impact on
the environment and human health is minimized.
By establishing a system for the collection and treatment of waste
accumulators and high-eciency batteries, the Group recovers
a signicant part of old accumulators that are placed on the
domestic market, thus signicantly reducing the amount of waste
that ends up in landlls. The Centre for Recycling of Accumulators
and Batteries in Zabok tends to use the best available techniques
to perform activities.
Financial risk is the potential investment required to maintain or
replace used equipment or assets due to a potential change in
regulatory requirements.
In the European Union, Regulation (EU) 2023/1542 of the European
Parliament and of the Council of 12 July 2023 on batteries and
waste batteries, amending Directive 2008/98/EC and Regulation
(EU) 2019/1020 and repealing Directive 2006/66/EC requires
retailers to collect and recycle their items from the observed
range in an appropriate manner, thereby reducing the amount
of hazardous waste placed on the market. This represents an
CIRCULAR ECONOMY
1
47
opportunity for the growth of revenues from the recycling of
accumulators and batteries of other retailers who do not have a
recycling process as part of their business.
Recycling our own products contributes positively to the
Group's reputation and contributes to the achievement of
recommendations related to the implementation of the circular
economy. This can have a positive impact on the price of the
Group's securities, the possibility of more favourable lending, the
creation of new partnerships, but also the strengthening of the
brands of companies operating within the Group.
The nancial opportunities arise from the requirements of
legislation that sets increasingly stringent obligations for the
separation, storage and recycling of waste. Companies within
the Group in the environmental segment that provide these
services (recycling, hazardous waste disposal, waste transport)
can take advantage of the growing demand generated in the
markets. Companies can conclude long-term contracts with
other companies for waste management activities and reduce
waste disposal costs at the Group level by providing intra-group
services.
CIAK Group employs a great number of employees who perform
various jobs, from production, warehouse and transport activities
to administrative and oce work. Through this interaction, the
Group has an impact on various aspects of the working lives of
its employees.
CIAK Group actively inuences working hours, working
conditions, work-life balance, professional development,
income and adequate salary of its employees through various
initiatives and policies. Every year, during the business planning
process, the scope of work and the capacity of human resources
are considered in order to adjust the number of employees to the
needs of the business and ensure that all operational activities
are carried out within regular business hours. By employing
an optimal number of employees, the ability to perform work
tasks within regular working hours is ensured, which results in
better working conditions and greater employee satisfaction.
The onboarding process is continuously evolving depending on
the requirements of the job and includes an assigned mentor
with appropriate knowledge and experience to new employees,
which facilitates their adaptation to the working environment
and culture of the Group. Through the "Intranet", employees are
provided with quick and easy access to the information needed
for their daily work, including forms, procedures and information
about benets.
CIAK Group ensures regular payment of salaries and offers various
benets to employees, including nancial rewards according to
performance, occasional allowances, grants such as support for
the birth of a child, support for the death of a family member,
etc., and additional compensation for personal expenses such
as mobile phones or benets when using banking products.
The Group also provides exibility in working hours in harmony,
offering days off for family obligations or the rst day of school,
thus contributing to the work-life balance of employees.
Professional development of employees is encouraged by
providing opportunities for additional education and information
on important topics such as occupational safety, business
ethics and environmental protection. Employees have access to
resources for personal and professional growth, and the Group
regularly conducts internal training.
In addition, CIAK Group provides the possibility of using health
examinations and benets for involvement in sports activities to
preserve the health of employees.
These measures conrm the Group's commitment to ensuring
adequate working conditions, encouraging the professional
development of the individual and maintaining the balance of
business and private obligations of its employees.
The following activities have been identied as signicant effects
of the Group on its own workforce: annual planning of the number
of employees, development of a structured and centralized
approach to employment, internal training and education, and
scholarships for employees and children.
The nancial risks for these activities relate to the potential
increase in personnel costs. The nancial opportunity is
manifested in the reduction of employee turnover, which
consequently affects the stability of business activities and lower
investments in the training of new employees, i.e. replacements
in workplaces. Business planning includes an assessment of the
need for new employment at the level of relevant organizational
units, which enables timely and proactive action in the event
of a planned increase in the volume of work, which results in a
positive effect on work-life balance, better work performance
and potentially a more signicant contribution to the nancial
results of companies. Internal employee training contributes to
reducing the number of errors and accidents in the workplace,
which can have a positive impact on the absence of extraordinary
events, i.e. company expenditures. In addition, learning new
skills enables employees to actively and timely adapt to new
technologies or market or regulatory requirements, which allows
companies to maintain competitiveness and innovation and to
act proactively while considering external inuences. Investing in
the development of employees' skills and knowledge can increase
productivity, eciency and quality of work, which can lead to
higher revenues and protability of companies.
OWN WORKFORCE
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The effects of CIAK Group on consumers and end users are
reected in various aspects of business, starting from the quality
of products and services, their development according to their
needs, providing relevant information for making a purchase
decision, respecting delivery deadlines, to assessing and testing
user experience and protecting customers' personal data.
Consumer relations are partially regulated, which signicantly
affects the process of managing relationships with consumers.
The regulation denes the guidelines and obligations that
companies must ensure to protect the rights of consumers, their
interests and personal data. This also affects the satisfaction of
consumers and end users who decide to purchase, assortment or
use the services provided by the Group.
In addition to the effects on consumers resulting from the
application of all legal provisions, CIAK Group creates a positive
impact on its consumers and end users through several key areas,
which results in the creation of long-term partnerships with
customers and joint growth and development.
CIAK Group, as a provider of waste collection and disposal
services, has a signicant impact on the business of its clients,
as it enables them to comply with environmental regulations and
eciently manage waste. Through cooperation with CIAK Group,
companies can ensure timely waste disposal in accordance
with business practices. CIAK Group helps its clients reduce
waste-related costs by optimizing waste collection, recycling
and disposal processes in an environmentally friendly way. CIAK
Group's expertise and commitment to sustainability contributes
to strengthening the market position of clients, given that
environmentally friendly practices are becoming an increasingly
important factor in assessing the company's performance by all
stakeholders.
The Group sells products resulting from the battery recycling
process to companies that produce batteries and are also the
Group's suppliers in the IAM segment. This is a mutual effect and
form of cooperation.
As a form of cooperation with customers in the IAM segment, the
CIAK Auto Academy was formed, through which customers are
presented with the latest technologies and the importance of
proper use and replacement of parts, education on changes in the
Group's assortment and monitoring of market trends.
It is the CIAK Auto Academy that has been recognized as a
signicant activity of the Group in relations with consumers and
end users.
The development and execution of this signicant activity for
the Group requires certain investments, but educated customers
have a better perception of the value of products and services
provided by companies in the automotive segment, which leads
to an increase in sales.
The effects of CIAK Group's business conduct are aimed at
creating responsible, standardized, sustainable and ethical
business practices that benet all stakeholders – from employees
to end users and local communities.
The Group's signicant activities that are in line with good
corporate practice include a range of key initiatives. The Group
operates in accordance with the laws and regulations governing
operations in all markets in which it is present. Regular monitoring
of changes in regulations enables timely adjustments of business
processes, which reduces operational and nancial risk.
The Group applies the Code of Corporate Governance, which
denes high standards of ethical business and transparency,
which contributes to the trust of all stakeholders.
Regular business activities include obtaining essential business
permits, such as environmental and waste management permits,
ensuring compliance with environmental standards and relevant
regulations. The development of the management system of
aliated undertakings and the decision-making process at the
level of subsidiaries allows for the coordination of operations and
the eciency of operational activities. The Group also actively
develops rules and policies that dene clear guidelines for the
implementation of business activities, which ensures consistency
in all business segments at the Group level.
Special emphasis is placed on managing relationships with
suppliers to create long-term, stable partnerships. Dening
clear and ethical terms of cooperation with suppliers enables
mutual trust and contributes to business sustainability. Through
all these activities, the Group demonstrates its commitment to
high standards of corporate responsibility, ethical business and
sustainable development.
The nancial risk is represented by the costs of centralized
management and higher operating costs due to the
implementation of measures required by regulations and
standards. In addition, in extraordinary circumstances, there
is also a risk in the event of established non-compliance with
legal regulations in terms of nes, as well as the risk of failure to
CONSUMERS AND END-USERS
BUSINESS CONDUCT
1
49
obtain certain permits essential for business, which has a direct
consequence on the Group's revenues. Acting in accordance with
the corporate code and responsible business practices has an
impact on the reputation of the Group, which can be reected
in the price of the security, therefore responsible, standardized,
sustainable and ethical business is a priority for the Group.
The nancial opportunities that arise from these activities are
multiple - from reputational opportunities that are reected in
the sources of nancing and the creation of new partnerships to
better business decisions and more ecient business processes
that result in a better nancial result.
CIAK Group's goals in the eld of ecology include further
business development in the segments of waste management
and recycling, which are recognized as key areas that contribute
to global and European environmental goals. Given the growth of
the global population and increasing urbanization, the amount of
waste is constantly increasing, creating signicant pressure on
existing waste management systems. At the same time, increased
environmental awareness and stricter legislation are driving the
growth of this sector, as businesses and communities increasingly
demand responsible waste management and ecient recycling.
Due to these challenges, the demand for waste management and
recycling services is constantly growing, which imposes business
development in these areas as a strategic priority for CIAK Group.
Through innovation and implementation of sustainable practices,
the Group strives to respond to market demands and at the same
time contribute to the reduction of negative environmental
impact, thus achieving long-term business sustainability.
The goal of the CIAK Group is to increase the capacity for
collecting and recycling batteries, which signicantly reduces
the environmental risks associated with improper disposal of
batteries and prevents soil and groundwater pollution.
CIAK Group annually manages signicant quantities of hazardous
and non-hazardous waste within the scope of waste management
activities, with the aim of further developing long-term
partnerships with consumers of the service and partnerships
with European companies for hazardous waste management that
operate in accordance with the regulations of the European Union
on environmental protection and high operational standards in
further waste treatment procedures.
The draft strategy for business sustainability in waste
management and recycling activities is aimed at achieving long-
term sustainability, optimizing operational processes and reducing
the environmental footprint. In the coming periods, the Group will
consider the timeline for the adoption of the strategy, based on
the analysis of the collected data and information relevant to
sustainability issues. Operations management and professional
departments have a key responsibility to regularly monitor the
requirements of positive regulations and legal regulations to
ensure timely fullment of all legal obligations, including positive
regulations in the eld of environmental protection. This implies
not only harmonizing business processes with current legislation,
but also constantly monitoring changes in legislation to respond
quickly and eciently to new requirements. At the same time, it
is important that all business processes are directed towards the
best industry practices, which enables business optimization and
meets the requirements of customers and suppliers.
A key element of the strategy includes in each iteration of
procurement the modernization of equipment, which reduces
maintenance costs and increases eciency. Reliable equipment
reduces the risk of accidents and incidents. Reliable equipment
that eciently performs tasks such as shredding, separating
or sorting waste, reduces the need to transport large quantities
SUSTAINABILITY GOALS AND STRATEGY
CIAKGroup'ssustainabilitygoalsintheeldofbusinessconductare
basedontheintegrationofethical,legalandsociallyresponsible
practicesintoallaspectsofbusiness."
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of waste, thus reducing fuel consumption and gas emissions
associated with transport. Capital investments are considered in
the business planning process.
Through business processes compliant with legal requirements
and industry practices, business processes are optimized while
reducing emissions and saving energy.
The focus of operational management and employees in
professional departments is to identify business locations
where it is possible to implement quality standards such as ISO
standards and advanced technologies that optimize processes
and/or reduce energy consumption. In order to achieve energy
eciency, the strategy is to implement solar systems where
the infrastructure of the facility allows and in accordance with
business possibilities and additional energy saving measures,
such as the modernization of heating systems and LED lighting.
Through the Group's communication channels with key partners,
useful inputs for the development of our services and offer are
obtained, and by applying transparent and fair business, long-
term partnerships and loyal customers are developed.
With such a strategy, CIAK Group not only achieves business
goals, but also actively contributes to the preservation of the
environment, reducing emissions and the amount of waste and
promoting sustainable practices in the industry.
Waste management and recycling directly contributes to reducing waste, increasing resource eciency, and
promoting sustainable consumption patterns. Recycling waste reduces the need for new raw materials and
reduces pressure on natural resources.
Ecient waste management and recycling play a key role in creating cleaner and more sustainable cities and
communities, reducing pollution and improving quality of life.
Proper waste management, including recycling, reduces greenhouse gas emissions associated with landlling,
which contributes to climate change mitigation.
Encouraging innovation in recycling processes and the development of new technologies for waste treatment
contributes to sustainable industrial production and strengthening infrastructure that is more resilient to
environmental challenges.
THE CONTRIBUTION OF CIAK GROUP'S OPERATIONS IN THE ENVIRONMENTAL
SEGMENTS TO THE UN SUSTAINABLE DEVELOPMENT GOALS (SDGS) IN THIS
CONTEXT INCLUDE:
GOAL 12: RESPONSIBLE PRODUCTION AND CONSUMPTION
GOAL 11: SUSTAINABLE SETTLEMENTS AND COMMUNITIES
GOAL 13: FIGHTING CLIMATE CHANGE
GOAL 9: INDUSTRY, INNOVATION AND INFRASTRUCTURE
1
Sustainability goals for our own workforce focus on the long-
term well-being of employees, fostering work-life balance, and
creating a work environment that promotes equality, health, and
professional development. The goal is optimal employment at the
level of all business processes in order not only to ensure business
eciency, but also to annul overtime hours and achieve harmony
between the number and complexity of work tasks and the number
of employees. The goal is also to hire talents and their retention
in order to minimize the costs of introducing new employees into
business processes through the development of an onboarding
system that, in accordance with market possibilities, lters
the best employees for appropriate job positions. The Group is
committed to equality and diversity, encouraging a greater share
of women in business and ensuring fair wages and fair conditions
for all employees. In addition, the emphasis is on professional
development, with the aim of increasing the number of employees
participating in trainings and programs aimed at improving skills.
Professional development of employees has a signicant impact
on the nancial result because it contributes to increasing the
eciency and productivity of the workforce, which is directly
reected in business results. In addition, investing in professional
development promotes employee satisfaction, reduces workforce
turnover and attracts talented professionals, which contributes
to business stability and competitive advantage in the market.
The Group also strives to increase employee satisfaction, reduce
stress and burnout through the implementation of wellbeing
initiatives, exible work arrangements and support for work-life
balance.
With the aim of achieving its sustainability goals in terms of its
own workforce, CIAK Group focuses on several key areas that
ensure the well-being of employees and business eciency.
Through the business planning process, the Group considers
the volume of work and human resources capacities to ensure
optimal employment, reduce stress and excessive working hours,
and ensure that operational activities can be carried out within
working hours. Also, new employment is planned according to the
needs and capacities of the business. In the onboarding process,
new employees receive mentorship, and the management is
continuously focused on building effective communication
with employees and encouraging mutual cooperation, thereby
ensuring task eciency and employee safety in the workplace.
The recruitment process clearly denes the requirements of the
position and considers the qualications of the candidates, thus
guaranteeing equality in selection and ensuring the selection of
the candidates. The Group also organizes specialized internal
trainings for operational processes, ensuring that employees
have the necessary knowledge and skills. Employees, who play a
key role in the management system and service delivery, prepare
in advance for their responsibilities so that their knowledge is at
the appropriate level. Also, employees have access to external
education as agreed with the manager.
Employees are regularly paid salaries, and in addition, they are
offered additional benets such as performance incentives,
occasional benets, grants such as childbirth support, support
for the death of a family member, and the like, and additional
1
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
52
CIAK Group ensures optimal employment and work-life balance for its employees and contributes to a better
quality of life for employees, which is in line with the goal of ensuring health and well-being. Using exible working
hours and days off for family commitments or important life events, such as the rst day of school, contributes to
work-life balance, boosting employees' mental health and well-being.
The Group focuses on equality in employment, thereby contributing to the reduction of inequalities within the
organization. The recruitment process is based on clearly dened job requirements and qualications, which
ensures that all candidates have equal opportunities in the selection process.
The Group continuously invests in the development of its employees, organizing internal and external trainings
that enable their professional growth and development. This ensures not only the improvement of employee
skills and knowledge, but also the achievement of high eciency in business
THE CIAK WORKFORCE SUSTAINABILITY GOALS GROUP DIRECTLY CONTRIBUTES TO
SEVERAL KEY UN SUSTAINABLE DEVELOPMENT GOALS, INCLUDING:
GOAL 3: ENSURE HEALTH AND WELL-BEING FOR ALL AT ALL AGES
GOAL 10: REDUCE INEQUALITIES, ENSURING A FAIR
AND LEVEL PLAYING FIELD
GOAL 8: PROMOTE PRODUCTIVE, DECENT WORK
benets for personal expenses such as mobile phones and
housing benets. Occasionally, based on the assessment of
business results, additional fees are paid. To ensure a work-life
balance, the Group continuously encourages the use of annual
leave, and employees are provided with exible working hours,
including days off for family obligations and the rst day of school.
For the smooth and ecient performance of work, employees are
provided with modern IT tools and means of transport.
The Group also monitors the organizational climate and employee
satisfaction by conducting periodic surveys, and communication
channels such as the Intranet and periodic meetings of the
management team with team members enable effective exchange
of information and feedback that serves to further improve
working conditions. These strategies ensure that sustainable
workforce goals are achieved, employee professional satisfaction
is increased, and business eciency is improved.
1
53
The Group's sustainability goals in terms of impacts on
consumers and end users focus on creating value through
responsible business practices, transparent information
about the range and services, and improving the customer
experience.
In order to achieve sustainability goals in terms of impact
on consumers and end users, CIAK Group is focused on
addressing consumer needs, informing about all key aspects
and creating a quality user experience.
The Group continuously aligns its offer and quality of services
with the needs of its consumers, while ensuring timely supply
of supplies so that partners have access to an adequate
assortment for the smooth performance of their own business.
Speed of delivery and service of goods are key to ensuring
timely supply of customers and the successful operation of
end users. The Group's strategy is based on setting realistic
deadlines at the stage of agreeing terms. This approach allows
the Group to remain in line with its capacities and guarantees
eciency in meeting its obligations to customers.
The Group actively monitors the regulations that prescribe
consumer information and the structure of the content of
product declarations in the markets in which the Group
operates, ensuring high standards of transparency, safety
and protection of consumer interests. The entire range
and services offered by the Group meet the applicable legal
standards and enable consumers to obtain accurate, clear
and relevant information. Consumers can obtain information
about the origin of services, business methods, environmental
certicates and other important data, thus ensuring a
transparent partnership between the Group.
In addition, the Group provides ecient customer support
systems, enabling a quick response to complaints, inquiries
and customer needs. Continuous collection of feedback
from consumers enables the improvement of services and
an increase in customer satisfaction, which builds trust and
long-term relationships.
In terms of security, CIAK Group ensures that all business
locations meet security standards, including conducting
regular inspections of installations, equipment and devices in
accordance with applicable legislation, which further protects
the interests and safety of end users.
The protection of personal data of consumers and end users
is a key responsibility of the Group, which complies with all
requirements of the Data Protection Regulation (GDPR), thus
protecting the privacy and condentiality of its users' data. All
end users and customers can submit inquiries or complaints
through the call centre or at points of sale.
In marketing communications, the Group applies the practice
of truthfulness, avoids belittling the competition and actively
promotes socially responsible projects and activities. In
addition, it uses green marketing approaches and educates
consumers about sustainable practices, which encourages
responsible behaviour and sustainability.
Through all these measures, CIAK Group not only improves the
quality of its services for consumers and end users, but also
actively contributes to sustainability and social responsibility,
thereby strengthening its position in the market and creating
long-term, mutually benecial relationships with customers
and partners.
CIAK Group's sustainability goals in the eld of business
conduct are based on the integration of ethical, legal and
socially responsible practices into all aspects of business.
The specic goal is to align business processes with legal
requirements and industry standards, with a clear denition
of roles and responsibilities, which include responsibility
for business results, implementation of business policies,
business supervision and stakeholder reporting. The Group
strives to ensure the application of existing regulations and
the development of new policies that will ensure compliance
with applicable laws and standardization of operations, while
supporting a business strategy that includes sustainable
development. The policies implemented by CIAK Group
should include strategically important stakeholders, such
as employees, customers, suppliers, local communities
and investors, in order to ensure an integrated approach to
sustainability at all levels of business and achieve long-term
success.
CIAK Group's strategy in the eld of business conduct is
based on the development of the internal organization and the
implementation and development of management standards,
policies and policies in order to ensure the legality, ethics and
standardization of operations, while addressing the interests
of all stakeholders. The Group's business processes are aligned
with applicable legal requirements, industry standards and
practices, with clearly dened roles and responsibilities that
include responsibility for business results, implementation
of business policies, business oversight and stakeholder
reporting.
Internal acts, such as the Statute and the Rules of Procedure,
dene the criteria for the appointment and election of
members of the Management Board and the Supervisory
Board, their tasks, responsibilities and manner of work. CIAK
Group has implemented a Code of Corporate Governance
based on the principles of business transparency, procedures
for the work of the Supervisory Board and the Management
Board, avoidance of conicts of interest, effective internal
1
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
54
1
control and a system of accountability. Also, the Group
has developed internal acts that regulate the decision-
making process, thus guaranteeing transparency and
accountability in business. Policies are in place that
dene the approach and rules in relations with key
stakeholders, ensuring ethical business practices at all
stages of business.
For specic areas that require precise expertise,
such as regulated sectors, the Group has formed
expert departments or hired specialized experts,
and if necessary, it engages external associates. The
ecology department plays a key role in aligning business
processes with environmental practices and obtaining the
necessary permits for operations, ensuring compliance
with environmental regulations. The quality management
department coordinates the implementation of
management standards and obtaining certicates. The
Human Resources Department is responsible for the
implementation of legal requirements regarding work, as
well as supervising the implementation of the provisions
of the Labour Regulations. Through the supervision
of business processes, the internal audit department
conducts regular checks of compliance with internal
regulations and external regulations.
This comprehensive approach enables CIAK Group to
manage its business sustainably, ensuring compliance
with legislation, industry standards and business
practices, while contributing to accountability to all key
stakeholders and long-term performance.
Through all its processes, CIAK Group implements
measures and corrective actions to prevent potentially
negative effects and so that in the event of the
realization of negative effects, they are resolved without
negative consequences and with the satisfaction of all
stakeholders involved.
Positive effects on the environment are manifested
through the reduction of pollution and through proper
waste management and waste reduction and saving of
natural resources.
Regarding one's own workforce, time management,
employee mentoring, secure workplaces, adequate wages
and employee training are key factors for increasing
employee satisfaction and contributing to wider social
and economic well-being. By working together, they
create a work environment in which employees are
motivated, productive and loyal.
Respecting consumer rights and transparency in
communication enhance customer loyalty. Taking
consumer opinions into account allows for adjusting the
product range to market demands, thereby increasing
customer satisfaction.
Business based on responsible business conduct, a code
of ethics, a developed corporate governance system
and transparent practices has a key impact on the
satisfaction of stakeholders and the long-term success
of the company. A clear division of responsibilities in
corporate governance contributes to a stable business
environment. Responsible business in accordance with
all positive regulations and sectoral standards creates
trust among stakeholders. A transparent procurement
policy and compliance with contractual conditions
with suppliers ensure long-term and reliable business
relationships.
The combination of all these factors contributes to
strengthening trust among stakeholders, improves the
reputation of the company and contributes to long-term
sustainability, creating a positive social impact and a
responsible market.
The negative effects on sustainability factors arise from
the nature of certain segments in which CIAK Group
operates (waste management and recycling), although
as elabourated the positive effects of the same are far
greater. While these effects may be present, the Group
takes a number of measures to reduce or eliminate them
altogether. This includes complying with applicable legal
regulations and implementing internal initiatives aimed
at reducing the negative impact. In this way, the effects
are reduced to minimal levels or remain at the level of
potential risks. On the other hand, the positive effects
are the result of the integration of activities that support
sustainable business development, which is integrated
into the Group's business strategy, thus ensuring long-
term sustainability and contribution to the community
and the environment.
The Group integrates activities into its business processes
that ensure the fullment of the goals dened by the
strategy. The strategy and its resilience to the challenges
in terms of responding to the identied signicant
impacts, risks and opportunities are subject to revision
through reporting cycles.
55
ASSESSMENT OF SIGNIFICANT IMPACTS, RISKS AND OPPORTUNITIES
CIAK Group has carried out a process of assessing the effects of
its business activities on people and the environment through
systematic analyses of the management body and expert
departments, with the aim of identifying and reducing risks, as
well as identifying opportunities for sustainable development.
The procedure is based on the analysis of all business activities
and relations with stakeholders at the level of all business
segments – from the production of car parts and batteries to
waste management and recycling, and including all markets.
The Group actively engages with key stakeholders and external
experts to understand environmental and social impacts, all
with the aim of identifying priority negative impacts. Through
this process, CIAK Group prioritizes those impacts that have
a high signicance and probability of occurring, and makes
strategic decisions based on clear quantitative and qualitative
criteria to determine the materiality of impacts and the need for
further action.
The analysis of double materiality for CIAK Group was conducted
using a methodological procedure developed by external
advisors in cooperation with the ESG Working Group of CIAK
Group, divided into four phases:
Introduction
The rst phase included dening the working group and
responsible persons, lling out the ESG self-assessment
questionnaire and analysing the company's environment.
It was completed with the submission of responses to the
questionnaire and the completion of the desk analysis of ESG
criteria.
Interviews and analyses
In the second phase, interviews with responsible persons were
conducted to analyse impacts, risks and opportunities, with the
identication of stakeholders and the denition of value chains.
It ended with the analysis of responses and the identication of
stakeholders.
Identication
In the third phase, the identication of impacts, risks and
opportunities was carried out in order to dene signicant
topics. The identied stakeholders assessed the materiality and
indicated the nancial risks and opportunities of these topics.
The phase is completed by analysing the responses and dening
signicant topics. In assessing materiality, the thresholds of
materiality, impact and nancial signicance were considered.
If at least in one of the above signicance a
n activity is assessed
as significant, the activity is defined as significant.
Finalization
During the fourth phase, the final results of the double
materiality assessment process were presented, after
which the Group commented on the acceptance of the
identified significant topics. As a conclusion of the phase,
the final study of the significance assessment was
submitted.
The working group consists of Group employees from
various functional areas, including controlling, ecology,
human resources and legal affairs, as well as internal
audit and occupational safety.
Acting in accordance with positive regulations and
standards and the interests of all stakeholders (including
nature as a silent stakeholder) is not an option but an
imperative to ensure long-term stable operations. Therefore,
this is integrated into the CIAK Group's regular planning and
management process and includes the identification of
relevant regulations and key interests and their addressing in
accordance with the Group's objectives through policies and
measures. By introducing an annual sustainability reporting
obligation, the Group will carry out the above-described
procedure at relevant time intervals or in the event of
significant changes in business operations that may
significantly affect the assessment of the materiality of
certain topics.
Environmental
analysis
Self-assessment
Stakeholder
identication
Identication of
impacts, risks, and
opportunities
Identication of
signicant issues
1
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
56
1.1
0. DISCLOSURE REQUIREMENTS
CIAK Group has conducted a Double Materiality Analysis (DMA) to identify signicant impacts, risks and opportunities, applying the
criteria set out in ESRS 1, Section 3.2. The Group analyses the environmental, social and economic impacts of its business activities
and assesses how these effects affect business and stakeholders. Through analysis, key sustainability factors are identied, taking
into account severity, probability, and long-term effects. Using consistent assessment methodologies, the Group determines which
information is material for reporting, ensuring transparency in sustainability reporting.
List of disclosure requirements fullled in the preparation of the Sustainability
Report based on the results of the materiality assessment
1
List of disclosure requirements Page
General announcements BP1 General basis for the preparation of the Business Sustainability Report 28
BP2 Disclosures in special circumstances 28
GOV-1 The role of administrative, management and supervisory bodies 28-32
GOV-2 Information to be reported to the administrative, management and
supervisory bodies of undertakings and sustainability factors dealt with by
them
33
GOV-3 Integrating sustainability results into incentive schemes 34
GOV–4 Due Diligence Report 34
GOV–5 Risk Management and Internal Controls of Sustainability Reporting 34
SBM-1 Strategy, Business Model and Value Chain 35-38
SBM-2 Interests and Views of Stakeholders 40-43
SBM-3 Signicant Impacts, Risks and Opportunities and Their Interaction with
Strategy and Business Models
44-54
IRO-1 Description of the procedure for identifying and assessing signicant
impacts, risks and opportunities
55
IRO-2 Disclosure requirements in the ESRS covered by the corporate
sustainability statement
56-61
E1 climate change GOV-3 Integrating sustainability results into incentive schemes 62
IRO-1 – Description of the procedures for identifying and assessing signicant
impacts, risks and opportunities related to climate change
62-63
SBM-3 – Signicant Impacts, Risks and Opportunities and Their Interaction with
Strategy and Business Model
64
E1-2 – Policies related to climate change mitigation and adaptation 64-65
E1-3 – Measures and resources related to climate policies 65
E1-4 – Targets related to climate change mitigation and adaptation 65
E1-5 – Energy consumption and combination of energy sources 66
E1-6 – Scope 1, 2, 3 gross GHG emissions and total GHG emissions 68-69
E2 pollution
IRO-1 – Description of the procedures for identifying and assessing signicant
effects, risks and opportunities arising from pollution
70
E2-1 – Pollution-related policies 70
E2-2 – Pollution-related measures and resources 71
E2-3 – Pollution-related targets 71
57
1
List of disclosure requirements Page
E2-4 – Air, water and soil pollution 71
E5 resource use and
circular economy
· IRO-1 – Description of the procedures for identifying and assessing
signicant impacts, risks and opportunities related to resource use and the
circular economy
73-74
E5-1 – Policies related to resource use and the circular economy 74
E5-2 – Measures and resources related to resource use and the circular
economy
74
E5-3 – Targets related to resource use and the circular economy 74
E5-4 – Inow of resources 74
E5-5 – Resource Drain (Waste) 75
S1 own workforce
SBM-3 – Signicant Impacts, Risks and Opportunities and Their Interaction with
Strategy and Business Model
77-79
S1-1 – Policies related to own workforce 79
S1-2 – Procedures for cooperation with one's own workforce 79-80
S1-3 - Procedures for remediation of adverse impacts and channels through
which the own workforce can raise concerns
80-81
S1-4 – Taking measures for signicant impacts on one's own workforce,
approaches to mitigating signicant risks and realizing signicant
opportunities related to one's own workforce, and the effectiveness of these
measures
81
S1-6 – Characteristics of the company's employees 82
S1-9 – Diversity indicators 83
S1-10 – Adequate wages 83
S1-16 – Compensation indicators (difference in wages and total compensation) 83
S1-17 – Cases, complaints and serious human rights impacts 83
S4 consumers and end-
users
SBM-3 – Signicant Impacts, Risks and Opportunities and Their Interaction with
Strategy and Business Model
85-86
S4-1 – Policies for consumers and end users 86
S4-2 – Procedures for engaging with consumers and end-users on impacts 86
S4-3 - Procedures for remediation of adverse impacts and channels through
which consumers and end-users can raise concerns
86-87
S4-4 – Taking measures for signicant impacts on consumers and end-users,
approaches to managing signicant risks and realising signicant opportunities
related to consumers and end-users, and the effectiveness of these measures
87
G1 business conduct GOV-1 – The role of administrative, supervisory and management bodies 89
IRO-1 – Description of the procedures for identifying and assessing signicant
impacts, risks and opportunities
89
G1-1 – Business Conduct Policies and Corporate Culture 89-90
G1-2 – Supplier Relationship Management 90
G1-6 – Payment practices 90
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
58
Request for Disclosure and
Related Data Point
Reference to the Regulation
on Publication of
Information on Sustainable
Finance
Reference to Third Pillar
Reference to Rules on
Reference Values
Reference
to European
Climate
Law
Request for
Disclosure in
the CIAC Group's
Sustainability
Report
ESRS 2 GOV-1
Indicator No. 13 from Table 1
in Annex I.
Delegated Regulation (EU)
2020/1816, Annex II.
GOV-1
Gender diversity in governance,
point 21, sub-point (d)
ESRS 2 GOV-1
Delegated Regulation (EU)
2020/1816, Annex II.
GOV-1
Percentage of Independent Board
Members Point 21, sub-point €
ESRS 2 GOV-4
Indicator No. 10 from Table 3
of Annex I.
GOV-4
Statement of Due Diligence point
30.
ESRS 2 SBM-1
Indicator no. 4 of Table 1 of
Annex I.
Regulation (EU) No Regulation (EU) No
575/2013, Article 449a
Delegated Regulation (EU)
2020/1816, Annex II.
Not applicable
Participation in fossil fuel and
energy-related activities point
40(d)(i)
Commission Implementing Regulation
(EU) 2022/2453, Table 1: Qualitative
information on environmental risk and
Table 2: Qualitative information on
social risk
ESRS 2 SBM-1
Pokazatelj br. 9 iz tablice 2 iz
Priloga I.
Delegirana uredba (EU)
2020/1816, Prilog II.
Not applicable
Participation in fossil fuel and
energy-related activities point
40(d)(i)
ESRS 2 SBM-1
Indicator no. 9 from Table 2
of Annex I.
Delegated Regulation (EU)
2020/1816, Annex II.
Not applicable
Participation in activities related to
the production of chemicals point
40(d)(ii)
ESRS 2 SBM-1
Delegated Regulation
(EU) 2020/1818, Delegated
Regulation (EU) 2020/1816,
Article 12(1), Annex II
Not applicable
Sudjelovanje u aktivnostima
povezanima s uzgojem i
proizvodnjom duhana točka 40.
podtočka (d) iv.
ESRS E1-1 Regulation
(EU)
2021/1119,
Article 2(1)
E1-1
Transition plan to achieve climate
neutrality by 2050, paragraph 14.
ESRS E1-1 Article 449a
Delegated Regulation (EU)
2020/1818, Article 12(1),
points (d) to (g), and Article
12(2)
Not applicable
Companies excluded from Paris
Agreement benchmarks point 16(g)
Regulation (EU) No 575/2013;
Commission Implementing Regulation
(EU) 2022/2453, Template 1: Book of
Positions – Transition Climate Change
Risk: Credit Quality of Exposures by
Sector, Emissions and Residual Maturity
ESRS E1-4
Indicator no. 4 of Table 2 of
Annex I.
Article 449a
Delegated Regulation (EU)
2020/1818, Article 6
ESRS E1-4
Greenhouse gas emission
reduction targets point 34
Regulation (EU) No 575/2013;
Commission Implementing Regulation
(EU) 2022/2453, Template 3: Book of
Positions – Transition Risk of Climate
Change: Compliance Indicators
ESRS E1-5
Indicator no. 5 from Table
1 and indicator no. 5 from
Table 2 of Annex I.
ESRS E1-5
Fossil energy consumption broken
down by source (only sectors
with a signicant climate impact)
paragraph 38.
ESRS E1-5 Energy Consumption
and Energy Source Mix, Item 37.
Indicator no. 5 from Table 1
of Annex I.
E1-5
ESRS E1-5
E1-5
Energy intensity related to
activities in sectors with a
signicant impact on the climate
Paragraphs 40 to 43
ESRS E1-6 Article 449a of Regulation (EU) No
575/2013; Commission Implementing
Regulation (EU) 2022/2453, Template 1:
Book of Positions – Transition Climate
Change Risk: Credit Quality of Exposures
by Sector, Emissions and Residual
Maturity
Delegated Regulation (EU)
2020/1818, Articles 5(1), 6
and 8(1)
E1-6
Gross GHG emissions from scope
1, 2, 3 and total GHG emissions
point 44.
1
List of data points in cross-sectoral and thematic standards arising from other EU legislation
59
Request for Disclosure and
Related Data Point
Reference to the Regulation
on Publication of
Information on Sustainable
Finance
Reference to Third Pillar
Reference to Rules on
Reference Values
Reference
to European
Climate
Law
Request for
Disclosure in
the CIAC Group's
Sustainability
Report
ESRS E1-6 Regulation (EU) No Regulation (EU) No
575/2013, Article 449a Commission
Implementing Regulation (EU)
2022/2453, Template 3: Position
Book – Transition Climate Change Risk:
Compliance Indicators
Delegated Regulation (EU)
2020/1818, Article 8(1)
E1-6
Gross greenhouse gas intensity
points 53 to 55
ESRS E1-7 Regulation
(EU)
2021/1119,
Article 2(1)
Not applicable
Greenhouse gas removals and
carbon credits, paragraph 56.
ESRS E1-9
Delegated Regulation
(EU) 2020/1818, Delegated
Regulation (EU) 2020/1816,
Annex II.
Right to gradual
implementation.
Exposure of the reference portfolio
to physical risks related to climate
change, paragraph 66.
ESRS E1-9 Regulation (EU) No Regulation (EU) No
575/2013, Article 449a Commission
Implementing Regulation (EU)
2022/2453, paragraphs 46 and 47.
Template 5: Book of Positions – Physical
Risk of Climate Change: Exposures
Subject to Physical Risk.
Right to gradual
implementation.
Breakdown of monetary amounts
according to acute and chronic
physical risk, point 66(a)
ESRS E1-9
Location of signicant assets
exposed to signicant physical risk
point 66(c)
ESRS E1-9 Breakdown of the book
value of real estate of enterprises
by energy eciency classes, point
67(c).
Regulation (EU) No Regulation (EU) No
575/2013, Article 449a Commission
Implementing Regulation (EU)
2022/2453, point 34, template 2:
Position book – Transition risk of
climate change: Loans with real estate
as collateral – Energy eciency of
collateral
Right to gradual
implementation.
ESRS E1-9
Delegated Regulation (EU)
2020/1818, Annex II.
Right to gradual
implementation.
Degree of exposure of the portfolio
to climate-related opportunities,
paragraph 69.
ESRS E2-4
Annex I, indicator no. 8 Table
1, Annex I, Indicator No. 2
Table 2, Annex I, Indicator
No. 1 Table 2, Annex I,
Indicator No. 3 Table 2
E2-4
Quantity of each pollutant listed
in Annex II Regulation on E-PRTR
(European Pollutant Release and
Transfer Register) discharged into
air, water and soil, point 28.
ESRS E3-1
Indicator no 7. of Table 2 of
Annex I.
Not signicant
Water and marine resources,
point 9.
ESRS E3-1
Indicator no 8. of Table 2 of
Annex I.
Not signicant
Specic policy, point 13.
ESRS E3-1
Indicator no 12. of Table 2 of
Annex I.
Not signicant
Sustainable oceans and seas,
point 14.
ESRS E3-4
Indicator no 6. of Table 2 of
Annex I.
Not signicant
Total amount of water recycled and
reused, point 28(c)
ESRS E3-4
Indicator no 6. of Table 2 of
Annex I.
Not signicant
Total water consumption in m3 per
net income from own operations,
item 29.
ESRS 2- IRO 1 - E4 point 16.
Indicator no 7. of Table 2 of
Annex I.
Not signicant
subpoint (a), subsection i.
ESRS 2- IRO 1 - E4 point 16.
Indicator no 10. of Table 2 of
Annex I.
Not signicant
point (b)
ESRS 2- IRO 1 - E4 point 16.
Indicator no 14. of Table 2 of
Annex I.
Not signicant
point (c)
1
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
60
Request for Disclosure and
Related Data Point
Reference to the Regulation
on Publication of
Information on Sustainable
Finance
Reference to Third Pillar
Reference to Rules on
Reference Values
Reference
to European
Climate
Law
Request for
Disclosure in
the CIAC Group's
Sustainability
Report
ESRS E4-2
Pokazatelj br. 11 iz tablice 2
Priloga I.
Not signicant
Sustainable land/agricultural
practices or policies, point 24(b)
ESRS E4-2
Pokazatelj br. 12 iz tablice 2
Priloga I.
Not signicant
Sustainable ocean/sea practices or
policies point 24(c)
ESRS E4-2
Pokazatelj br. 15 iz tablice 2
Priloga I.
Not signicant
Policies to tackle deforestation,
paragraph 24(d)
ESRS E5-5
Pokazatelj br. 13 iz tablice 2
Priloga I.
E5-5
Non-recycled waste, point 37(d)
ESRS E5-5
Indicator no. 9 from Table 1
of Annex I.
E5-5
Hazardous waste and radioactive
waste, point 39.
ESRS 2 – SBM3 – S1
Indicator no. 13 from Table 3
of Annex I.
SBM3 – S1
Risk of forced labour, point 14(f)
ESRS 2 – SBM3 – S1
Indicator no. 12 from Table 3
of Annex I.
SBM3 – S1
Risk of child labour, point 14(g)
ESRS S1-1
Indicator no. 9 from Table
3 and indicator no. 11 from
Table 1 of Annex I.
S1-1
Commitments in the eld of human
rights policy, paragraph 20.
ESRS S1-1
Delegated Regulation (EU)
2020/1816,
S1-1
Due diligence policies on matters
covered by core conventions 1
to 8 of the International Labour
Organization, paragraph 21.
Annex II
ESRS S1-1
Indicator no. 11 from Table 3
of Annex I.
S1-1
Procedures and measures to
prevent tracking in human
beings, paragraph 22
ESRS S1-1
Indicator no. 1 of Table 3 of
Annex I.
S1-1
Accident prevention policy or
management system, paragraph
23.
ESRS S1-3
Indicator no. 5 of Table 3 of
Annex I.
S1-3
Complaints mechanism, paragraph
32(c)
ESRS S1-14
Indicator no. 2 from Table 3
of Annex I.
Delegated Regulation (EU)
2020/1816,
Not signicant
Number of deaths and number and
rate of accidents at work, point
88(b) and (c)
ESRS S1-14
Indicator no. 3 of Table 3 of
Annex I.
Not signicant
Number of days lost due to injuries,
accidents, deaths or illnesses,
point 88(e)
ESRS S1-16
Indicator no. 12 from Table 1
of Annex I.
Delegated Regulation (EU)
2020/1816,
S1-16
Unmatched gender pay gap
paragraph 97, point (a)
ESRS S1-16
Indicator no. 8 from Table 3
of Annex I.
S1-16
Excessive pay gap between
directors and employees point 97(b)
ESRS S1-17
Indicator no. 7 from Table 3
of Annex I.
S1-17
Cases of discrimination, paragraph
103(a)
ESRS S1-17 Non-compliance
with the UN Guiding Principles
on Business and Human Rights
and OECD guidelines, point 104,
subpoint (a).
Indicator no. 10 from Table
1 and Indicator no. 14 from
Table 3 of Annex I.
Delegated Regulation (EU)
2020/1816,
S1-17Delegated Regulation (EU)
2020/1818,
1
61
Request for Disclosure and
Related Data Point
Reference to the Regulation
on Publication of
Information on Sustainable
Finance
Reference to Third Pillar
Reference to Rules on
Reference Values
Reference
to European
Climate
Law
Request for
Disclosure in
the CIAC Group's
Sustainability
Report
ESRS 2 – SBM3 – S2
Indicators No. 12 and 13 from
Table 3 of Annex I.
Not signicant
High risk of child labor or forced
labor in the value chain, point 11,
subpoint (b).
ESRS S2-1
Indicator No. 9 from Table
3 and Indicator No. 11 from
Table 1 of Annex I.
Not signicant
Obligations in the area of human
rights policy, point 17.
"ESRS S2-1
Policies relating to workers in the
value chain, point 18."
Indicators No. 11 and 4 from
Table 3 of Annex I.
Not signicant
ESRS S2-1 Non-compliance with
the UN Guiding Principles on
Business and Human Rights and
OECD Guidelines, point 19.
Indicator no. 10 from Table 1
of Annex I.
Commission Delegated
Regulation (EU) 2020/1816,
Not signicant
Commission Delegated
Regulation (EU) 2020/1818,
Annex II, Article 12,
Paragraph 1.
ESRS S2-1
Delegated Regulation (EU)
2020/1816,
Not signicant
Policies on due diligence regarding
issues covered by the fundamental
conventions from 1 to 8 of the
International Labour Organization,
point 19.
Annex II
ESRS S2-4
Indicator no. 14 from Table 3
of Annex I.
Not signicant
Pitanja ljudskih prava i incidenti
povezani s višim i nižim razinama
lanca vrednosti točka 36.
ESRS S3-1
Indicator No. 9 from Table 3
of Annex I. and Indicator No.
11 from Table 1 of Annex I.
Not signicant
Obligations in the area of human
rights protection policy, point 16.
ESRS S3-1
Indicator no. 10 from Table 1
of Annex I.
Delegated Regulation (EU)
2020/1816,
Not signicant
Non-compliance with the UN
Guiding Principles on Business and
Human Rights, ILO principles, and
OECD guidelines, point 17.
Delegated Regulation (EU)
2020/1818,
Annex II, Article 12,
paragraph 1.
ESRS S3-4
Indicator no. 14 from table 3
of Annex I.
Not signicant
Questions and incidents related to
human rights, item 36.
ESRS S4-1 Policies related to
consumers and end-users, point 16.
Indicator no. 9 from Table
3 and indicator no. 11 from
Table 1 of Annex I.
S4-1
ESRS S4-1
Indicator no. 10 from Table 1
of Annex I.
Commission Delegated
Regulation (EU) 2020/1816,
S4-1
Non-compliance with the UN
Guiding Principles on Business
and Human Rights and the OECD
Guidelines, point 17.
Commission Delegated
Regulation (EU) 2020/1818,
Annex II, Article 12,
paragraph 1."
ESRS S4-4
Indicator no. 14 from Table 3
of Annex I.
S4-4
Human rights-related issues and
incidents, point 35.
ESRS G1-1
Indicator no. 15 from Table 3
of Annex I.
G1-1
United Nations Convention against
Corruption, point 10, subpoint (b)
ESRS G1-1
Indicator no. 6 from Table 3
of Annex I.
G1-1
Whistleblower protection, point 10,
subpoint (d)
ESRS G1-4
Indicator No. 17 from Table 3
of Annex I.
Commission Delegated
Regulation (EU) 2020/1816,
Annex II.
Not signicant
Monetary nes for violations of
anti-corruption and anti-bribery
regulations, point 24, subpoint (a).
ESRS G1-4
Indicator No. 16 from Table 3
of Annex I.
Not signicant
Anti-corruption and anti-bribery
standards, point 24, subpoint (b).
1
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
62
Climate change
The adoption of the Sustainability Strategy envisages the
denition of incentives for members of managing bodies related
to climate impact issues. In order to align incentives related to
sustainability issues with the Group's ESG strategy, appropriate
strategic ESG goals for Management Board members will be
considered and dened in the coming periods.
CIAK Group's operations take place in the markets of the signatory
countries of the Paris Agreement, which integrate its objectives
into their policies and regulations. The Group continuously
monitors the relevant laws of these markets and regulations of
the European Union, including those related to the environment,
and integrates their requirements into its business processes. By
applying the provisions of the agreement in its own operations,
the other aforementioned regulations and the adoption of a
sustainability strategy, the Group is essentially implementing
a transition with the goals of reducing CO2 emissions and more
ecient use of resources. The operations of all subsidiaries
are aligned with European and global environmental and
sustainability goals, and consequently, the need to adopt a formal
transition plan has not been identied by the end of the reporting
period. In accordance with regulatory requirements, the Group
will undertake the necessary measurements and analyses in the
coming periods and plans to adopt a transition plan by 2030.
By analysing the data and calculating, it was established that the
greatest effects of CO2 emissions in the operational processes of
the CIAK Group occur in the segment of ecology, in the recycling
process and in the logistics and distribution process at the
level of all business segments. The Group regularly conducts
all measurements in accordance with the requirements of
environmental regulations and conrms compliance with them.
In the recycling process, the Group implements measures to
reduce CO2 emissions, which include the procurement of high-
eciency technology, the implementation of management
standards that provide guidelines for harmonizing all activities
with environmental standards, improving the sustainability of
processes (ISO standards), and control and monitoring. The
monitoring system contributes to systematic controls, i.e.
enables quality monitoring and reporting of emissions and air
quality parameters of the plant.
In logistics and distribution processes, greenhouse gas
emissions are reduced by ensuring the correctness of vehicles
in accordance with Euro standards, through regular technical
inspections. Measures to check the roadworthiness of vehicles
and reduce emissions from vehicles include a number of legal
regulations and preventive actions, successfully integrated
into the business processes of companies. All vehicles used by
the Group to perform their activities undergo regular technical
inspections where the amount of exhaust gases is tested.
These effects in terms of scale and scope at the Group level have
been identied as signicant, but locally and globally they do
not have a signicant impact on the environment, which is also
contributed by the implemented measures.
The Group's additional impact on reducing CO2 emissions and
increasing energy eciency was achieved by installing solar
panels in locations where the infrastructure allows it. The
location where the solar panels were installed refers to the
Group's company, which operates on the Croatian market as the
most important company in the environmental segment. This
activity of the Group indirectly contributes to the reduction of
CO2 emissions as well as the increase in energy eciency and
has been identied as signicant in terms of the Group's impact
on climate change and energy eciency.
In terms of energy eciency, CIAK Group conducts the
activity of measuring electricity consumption according to
the requirements of the ISO 50001 standard at locations with
signicant energy consumption, including companies operating
in the ecology segment (CIAK d.o.o. RH and CIAK d.o.o. RS) and
in the IAM segment (CIAK Auto d.o.o.). Consumption monitoring
makes it possible to optimize energy consumption, identify
areas of high consumption and take measures to reduce energy
losses. By setting goals and monitoring progress, the Group
reduces operating costs and implements more energy-ecient
solutions. The reduction in electricity consumption also reduces
CO2 emissions, which contributes to reducing the Group's carbon
footprint and business sustainability. Following the above and
other benets of implementing energy consumption metering for
the environment and business, the same has been identied as an
additional signicant activity of the Group in the topic that deals
with the impact on climate change.
The Group's indirect positive effect on reducing CO2 emissions
stems from the battery recycling process, which reduces the
need for raw material mining and thus reduces CO2 emissions
resulting from the process of obtaining raw materials for the
production of new batteries.
Financial risks in relation to the Group's identied material impacts
on climate change and energy eciency include the potential
incurrence of expenditures for the purpose of maintaining,
procuring or upgrading assets to ensure compliance with relevant
regulations or internal decisions that contribute to the creation of
positive effects on the climate and the environment.
2
63
Financial opportunities arise from the reduction of operating
costs through the optimization of energy eciency, the reduction
of energy costs and the improvement of operational performance.
In addition, sustainable operations have a positive impact on the
Group's reputation, which can have a positive impact on the price
of the Group's securities and on the cost of nancing.
The Group's transition risk management is an integral part of
business planning and risk management, taking into account
the specic challenges of the markets in which the Group
operates. The Group is active in the markets of countries that
have signed the Paris Agreement, where emission reductions
and environmental protection have been set as a national goal.
Measures to achieve the objectives of the said Agreement have
been implemented to a certain extent in the positive regulations
of the signatory countries. Therefore, the Group's approach to
managing environmental risks in terms of climate change and
energy eciency is based on ensuring the compliance of business
processes with relevant regulations.
In addition, through the analysis of the Group's business segments,
no business activity or assets were identied that would pose a
high risk in terms of transition risks. Consequently, no scenario
analysis was carried out regarding limiting global warming to 1,5
°C outside the standard short-, medium- and long-term business
planning process. In the context of logistics eet emissions, the
Group believes that this is a common challenge for the entire
economy, and not a specic risk for the Group.
In the process of analysing operations, risks and opportunities,
the same were also considered in the context of signicant
activities of the Group. In terms of solar panels, although they are
recognized as an important initiative for their installation, it is
limited to locations owned by the Group, where the conditions for
the protability of the investment are met. In the coming periods,
one of the set goals is to improve the process of systematic
collection of data on electricity consumption at the Group level.
In the future, in accordance with the new regulations and the
analysis of emission measurement results, the Group will consider
the need to develop a transition plan.
2
TheGroupcontinuouslymonitorstherelevantlawsofthesemarkets
andregulationsoftheEuropeanUnion,includingthoserelatedto
theenvironment,andintegratestheirrequirementsintoitsbusiness
processes."
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
64
With regard to climate change and energy eciency, the risks
at the Group level are mostly transitional in nature, while the
physical risks are minimal, and the Group implements activities
that would mitigate the potential occurrence of such risks.
In terms of physical risks, extreme weather events caused
by climate change (droughts, high outdoor temperatures,
increased absolute humidity) can disrupt operations, supply
chains and logistics, leading to increased operating costs. We
estimate that the Company's exposure to physical risks is low in
the short, medium and long term.
Transition risks related to climate change and energy eciency
for CIAK Group can manifest themselves in several key areas.
Given the growing regulation in the eld of environmental
protection, it is possible to increase legal obligations related
to the reduction of CO2 emissions and the improvement of
energy eciency, which may require the implementation of
new technologies and the adaptation of business processes.
However, the Group does not expect any signicant
investments that should be assessed, nor are investments in
the event of extraordinary changes in the law recognized as a
signicant risk, given that the regulations for the level of public-
interest companies are already known to a greater extent and
no signicant changes are expected according to the Group's
current knowledge.
The increase in energy costs, especially in segments that have
more signicant energy consumption, such as the recycling
segment, also represents a form of transition risk. In order
to reduce these costs and increase competitiveness, the
Group has implemented ISO standards for certain companies,
depending on the energy intensity of the process and size, with
the most important being the implementation of the ISO 50001
(Energy Management Systems) standard.
Signicant activities of the Group identied in the process
of the Group's double materiality analysis (e.g. installation of
solar panels, depending on business needs and infrastructure
capabilities, and measurement of energy consumption) are
of a transitional nature and in terms of further development
and maintenance, imply certain costs and are limited by
infrastructure capabilities. However, the benets of energy
savings offset any costs that may be incurred.
CIAK Group continuously monitors relevant legislative changes,
implements innovations and ensures compliance with the
requirements of implemented management standards. In
this way, it aims to minimise the risks associated with the
sustainability transition and adapt to new market conditions.
The Group's draft sustainability strategy conicts with the
business strategy, which is set for the long term and revised
in the short- and medium-term planning process. The draft
sustainability strategy, which is aimed at the business
development goals in the waste management and recycling
segment, is based on identied trends in the environment
in which the Group operates, where, based on current
environmental policies, there is room for business growth
and capacity increase. The basis of the strategy is regular
monitoring of upcoming regulatory changes, as well as acting
in accordance with positive market regulations in terms of
environmental protection and energy eciency, as well as
the implementation of management standards and persuit of
applying industry best practices in business processes. This
approach ensures that the strategy is resilient to transition
risks. The Group's signicant environmental impact effects
result from this approach.
In line with business developments, the Group will gradually
implement management standards in terms of environmental
protection and energy eciency (ISO 14001 and ISO 50001) in
other companies where any signicance or need is established.
In the coming periods, the Group intends to conduct a cost-
effectiveness analysis of the installation of solar panels at
business locations owned by the Group, where the position and
infrastructure offer the basic prerequisites for the above.
This approach enables the gradual alignment of the Group's
operations with regulatory requirements and environmental
objectives, while enabling long-term growth and reducing
environmental impact.
Environmental policies have been developed for companies
whose environmental impact is recognized as signicant in the
form of a Management System Policy, and their development is
based on implemented management standards. For the Group
companies operating in the ecology segment, C.I.A.K d.o.o. RH
and CIAK d.o.o. BiH, as well as the most important company
of the Group in terms of size and revenue, CIAK Auto d.o.o. of
the Republic of Croatia, have formed policies that dene the
approach to environmental protection and responsible use of
resources. The policy implemented in the companies of the
CIAK d.o.o. Group of the Republic of Croatia in the segment
of ecology, as well as in C.I.A.K. Auto d.o.o. of the Republic
of Croatia in the IAM segment prescribes procedures for
identifying and assessing environmental aspects based on
which environmental protection goals are set and prescribes
certain procedures for the purpose of achieving these goals.
Environmental aspects also include emissions into the air at the
level of CIAK d.o.o. in the recycling process, so the prescribed
procedures also refer to the reduction or prevention of these
emissions, which has a positive impact on climate change.
On the other hand, the policy implemented in the company
CIAK d.o.o. In the segment of ecology, BiH emphasizes the
necessity of planning and monitoring all processes related
2
65
to environmental protection, which ensures effective
management of environmental issues and the achievement of
environmental protection goals.
Policies also prescribe objectives and procedures regarding
energy eciency and resource use. The policies implemented
at the level of the companies CIAK d.o.o. of the Republic
of Croatia and CIAK Auto d.o.o. of the Republic of Croatia
comprehensively describe the energy eciency management
system. The obligation to consider opportunities for improving
energy performance and operational control when designing
new, modied and renovated plants, equipment, systems and
processes that can have a signicant impact on the energy
performance and performance of the company is prescribed.
In these policies, companies undertake to comply with national
and international standards, legal and other regulations related
to environmental protection and energy eciency. During their
development, interested stakeholders were identied and a
prescribed approach was taken to integrate their interests into
the business of CIAK Group.
Policies are available to all stakeholders and are communicated
to all those working for and on behalf of the companies covered
by the policies.
CIAK Group implements measures to reduce greenhouse gas
(GHG) emissions and increase energy eciency with a focus
on processes and societies that have the greatest impact on
the environment and energy consumption. In the segment of
ecology at the level of the battery recycling process for the
company C.I.A.K. d.o.o. of the Republic of Croatia, air emissions
are regularly monitored, and the application of advanced
technology, the implementation of management standards
in terms of environmental protection and energy eciency
and certain industrial practices precedes the obtaining of
an environmental permit, which ensures compliance with
applicable regulations. The Group owns a solar panel plant
at the location of CIAK d.o.o. of the Republic of Croatia in
order to increase the share of energy consumption from
renewable energy sources. The Group's focus is on identifying
the possibility of installing additional solar panels, where
institutions are prerequisites for launching a project with
the aim of managing the impact on CO
2
reduction and energy
consumption. Energy consumption is continuously monitored
and managed in the companies C.I.A.K. d.o.o. of the Republic
of Croatia and C.I.A.K. Auto d.o.o. of the Republic of Croatia,
which play a key role in the implementation of energy eciency
measures within the Group. Effective implementation of
environmental measures and energy eciency improvements
required appropriate investments in infrastructure, technology
and employee training.
In terms of reducing CO
2
emissions at the level of the logistics
and distribution process, the Group ensures that all Group
vehicles comply with the technical emission requirements, and
the optimization of logistics routes contributes to the reduction
of overall fuel consumption and emissions.
In the context of long-term planning, the Group has not
yet adopted a transition plan or specic measures for its
implementation, so the capital expenditures and operating costs
estimated on this basis have not been dened. Nevertheless,
environmental protection and energy eciency are already
integrated into business planning, and resources are allocated
in accordance with identied needs. In particular, nancial
resources are allocated for the implementation of measures
to manage the impacts, risks and opportunities of climate
change and energy eciency, which include investments in
infrastructure, technology and employee training in accordance
with the capabilities and priorities developed in accordance
with the business and environmental objectives of the Group
and the Group's covered company.
In terms of the impact on climate change, the CIAK Group did
not adopt quantitative targets for reducing greenhouse gas
emissions in the observed reporting period. However, the Group
continuously monitors and analyses emissions as part of its
key business processes, particularly in the battery recycling
segment, to understand its environmental footprint. Regarding
the change in energy performance, the Group sets measurable
targets for improving energy eciency, where the effects are
measured in relation to the data on the energy base, i.e. initial
energy consumption. Based on this data, further improvements
in energy eciency management and process optimization are
carried out. Business areas such as logistics, where there are
certain emissions, have not been identied as key areas where
the Group can have a signicant impact. However, the Group
actively monitors market trends and new technologies that
can enable the reduction of these emissions, especially in the
context of regulations and market opportunities. If solutions
appear on the market that are in line with its goals, the Group
will further focus on measuring emissions in this segment
and implementing new procedures. In addition, when relevant
industry benchmarks are available for targets under the new
regulatory framework in scal year 2025, the Group will revise
its existing targets and, where necessary, adjust or supplement
them to ensure compliance with current requirements and
standards.
2
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
66
2.1. POWER CONSUMPTION
Total energy consumed
7.997 mWH
Total energy consumed from
own sources
42,78 mWH
The sources of electricity generated by the CIAK Group correspond to the publicly available average percentage ratios of the markets
in which the Group operates, given that the Group procures electricity from market operators in each of the countries in which it is
present.
The presented data on energy consumption from own sources refer to electricity produced from solar panels in a company operating in
the segment of ecology on the market of the Republic of Croatia.
The amounts of electricity and heat consumption used for heating shown in this report have been calculated based on nancial data,
where the conversion was carried out using publicly available statistical data. For electricity and natural gas, Eurostat data were used,
which provides uniform and comparable statistics. Statistical data for all markets in which the Group operates were analysed, and the
average performance of all markets was used for the conversion. This data was used as input parameters to calculate emissions.
Data on the consumption of thermal energy from natural gas include the consumption of energy from fossil fuels in production plants
and the consumption of thermal energy from natural gas for heating business premises. In addition to the above, most of the thermal
energy consumption refers to fuel consumption using the Group's vehicle eet.
Data on financial effects in the observed period are contained in notes 6, 31 and 7
of the Group's financial statements. Net income refers to the Group's total
operating revenues in 2024.
The Group lists below the presented volumes of electricity and heat consumption in 2024.
Power consumption MWh
Consumption of thermal energy from natural gas 8,703
Thermal energy consumption from liqueed petroleum gas
(LPG)
50
Consumption of thermal energy from vehicle fuels 29,302
Consumption of thermal energy from fossil fuels 38,055
Electricity consumption 7,997
Consumption of electricity from renewable sources - produced 43
Electricity consumption - purchased 7,954
Total power consumption 46,052
Energy intensity by net income MWh/tEUR
Total energy consumption per net income 0.13
2
67
2.2. GREENHOUSE GAS EMISSIONS
The Group identies an opportunity to contribute to
environmentally sustainable goals through activities that affect
the increase of energy eciency. By systematically analysing
and measuring the activities of business processes that
create a signicant impact on greenhouse gas emissions,
the Group creates the preconditions for setting targets for
reducing environmental impact, i.e. reducing greenhouse gas
emissions in scope 1, 2 and 3.
The initial data collection for the calculation of emissions of
all three scopes was carried out for the outputs in 2024, which
will be observed as baselines in the following periods. Emission
trends in the coming periods will reect the eciency and
effectiveness of measures that society is considering or that
have been implemented in business processes, with the aim of
reducing greenhouse gas (GHG) emissions.
The Group generates the most signicant part of its emissions
from Scope 3 greenhouse gases, i.e. a total of 91.4% of total
emissions according to the location method, i.e. 89.7% of total
emissions according to the market method.
Scope 1, 2 and 3 greenhouse gas emissions
in 2024 by location method
Scope 1 emissions are generated using the Group's own eet and in the Group's production facilities.
99% of emissions generated in production facilities are related to the combustion of natural gas. In this context, the
Group identies opportunities for a signicant impact on the reduction of Scope 1 emissions in emissions generated by
fuel combustion when using its own eet, which account for 87% of the total emissions of the observed scope.
The planned measures that would contribute to the reduction of greenhouse gas emissions generated in the operational
operations and under the direct action of the Group include the procurement of more energy-ecient vehicles when
replacing or expanding the eet, regular maintenance of vehicles and the optimization of delivery routes. These measures
are continuously implemented in all companies of the Group, and the most signicant effects of a positive impact on
climatic conditions and the environment can potentially be achieved in the IAM segment.
The calculated Scope 2 emissions relate for the most part to emissions resulting from the procurement of electricity. A
more signicant opportunity for optimization of emissions is manifested in the selection of suppliers that ensure a higher
degree of electricity production from renewable energy sources. At the locations where the Group performs business
activities, electricity consumption is reduced by purchasing more energy-ecient devices. The group is considering
measures that would inuence employees' awareness of the importance of contributing to the reduction of energy
consumption in order to achieve positive effects on the climate and the environment. Part of the Group's electricity
consumption refers to its own electricity produced from renewable sources.
According to the location method, electricity consumption affects the generation of 74% of indirect emissions generated
by the Group's operating operations, while according to the market method, this share is 86%.
2
SCOPE 1 SCOPE 2 SCOPE3
6.3% 91.4%2.3%
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
68
2
The emission calculation boundaries set include Scope 1, Scope 2
and Scope 3 under the GHG Protocol. For the purpose of calculating
emissions, data on the Group's activities in 2024 was collected.
The quantities of electricity and heat consumption used for
heating shown in this report were calculated based on nancial
data, where the conversion was carried out using publicly available
statistical data. For electricity and natural gas, Eurostat data
were used, which provides uniform and comparable statistics.
Statistical data for all markets in which the Group operates were
analysed, and the average performance of all markets was used
for the conversion. This data was used as input parameters to
calculate emissions.
Greenhouse gas intensity per net income
tCO2e/
tEUR
Total greenhouse gas emissions (location
method) by net income
0,40
Total greenhouse gas emissions (market
method) by net income
0,41
*For the calculation of Scope 2 according to the market method, emission factors from the remaining energy mix were used
Greenhouse gas emissions tCO2e
Shares by
location
method
Shares by
market method
Scope 1 greenhouse gas emissions 9,052 6,3% 6,2%
Scope 2 greenhouse gas emissions by location method 3,324 2,3%
Scope 2 greenhouse gas emissions by market method 6,007 4,1%
Signicant Scope 3 greenhouse gas emissions 131.000 91,4% 89,7%
1. Purchased goods and services 118.541
2. Capital goods 1,661
3. Fuels and energy-related activities not covered by Scope 1 and Scope 2 1,200
4. Transport and distribution - "inbound ow" 2,303
5. Waste generated in own operations 3,621
6. Business trips 33
7. Employee arrival at work 2,752
8. Leased xed assets - "input ow" n.a.
9. Transport and distribution - "output ow" n.a.
10. Processing of sold products
887
11. Use of Sold Products
12. Disposal of products sold at the end of their life
13. Leased xed assets - "output ow" n.a.
14. Franchise n.a.
15. Investments n.a.
Total greenhouse gas emissions by location method 143.376
Total greenhouse gas emissions by market method 146.058
69
2
Scope 3 emissions
The most signicant part of Ciak Group's greenhouse gas emissions are Scope 3 emissions, of which the most signicant emissions
occur in the categories of the company's value chain input.
As this is the initial collection of a signicant volume of data for the purposes of calculations, the Group expects the improvement of the
data collection process in the coming periods, as well as the development of emission calculation methodologies.
Below are explanations of the applied methodologies and assumptions for the collection of input data for the calculation of Scope 3
emissions.
Summary assumptions of the used methodologies for calculating Scope 3 emissions by emission categories dened by the GHG
Protocol.
1. Purchased goods and services – The calculation refers to the emissions generated in the procurement processes of raw materials
in the company's key production processes and emissions ganerated from the procurement of the most signicant goods in the
Group's assortment, based on the estimated dominant material contained in the observed groups of goods. Given the complexity
of the supply chain and the comprehensiveness of the data, steps have been taken to collect more thorough data in the following
periods so that the calculation of emissions in the aforementioned category includes a wider range of input data. The calculation
of emissions in 2024 includes emissions resulting from the purchase of lead components and batteries in the Group's production
process and from the purchase of the most signicant groups of items in the Group's assortment.
2. Capital goods – the calculation includes a signicant amount of tangible goods purchased in the observed period. The method is
cost-based, and the collected are structured according to the category of goods (e.g. furniture, electronics, cars, etc.)
3. Fuel and energy input – the collected data in scope 1 and 2 were used and the emission calculation was carried out using the
corresponding emission factors of the fuel and energy input stream.
4. Inbound transport and distribution of goods – for the calculation, data on the number of arrivals and the estimated length of
routes for the most important Group suppliers were collected. Steps have been taken to collect data more thoroughly in the
coming periods, so that the calculation of emissions in this category covers a wider range of input data.
5. Business waste – the calculation refers to emissions resulting from the generation of waste in operations on the Croatian market
and includes business waste related to paper and plastic packaging, as well as sludge and write-off quantities of goods and
materials generated in the Group's activities related to the sale of goods. Steps have been taken to collect data more thoroughly in
the coming periods, so that the calculation of emissions in this category covers a wider range of input data.
6. Business travel – the calculation refers to emissions resulting from business trips by plane, bus and private vehicle. It is assumed
that most of the emissions generated using ocial vehicles for business travel are covered by the calculation of Scope 1 and 2
emissions.
7. Employee arrivals – input data for the calculation of emissions of the observed category were collected through a questionnaire
and extrapolated to all employees of the Group
8. Outbound transport and distribution – The Outbound Logistics Flow Group predominantly uses its own eet, and emissions are
included in the calculation of scopes 1 and 2.
9. Processing, use and disposal of products – observing the output ow of the value chain, the Group does not place electronic
goods on the market, nor has it identied signicant effects that would affect the amount of emissions in that part. The calculated
emission refers to emissions resulting from the placement of packaging of a signicant category of goods in the Group's product
range and includes emissions related to the disposal and processing of products sold by the organization.
10. The calculation in the categories of leased assets, franchises and investments is not applicable to the Group.
The Group identies an opportunity in managing greenhouse gas emissions, developing a collection methodology and expanding
the scope of calculations in signicant categories of emissions occurring in the input and output value chain. As expected, the most
signicant impact on emission reductions may have categories of input activities in the value chain. In the coming periods, the Group
will primarily focus on the analysis of emissions generated in this part and will consider the possibility of dening target values to
reduce the Group's total emissions.
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
70
3
Pollution
CIAK Grupa d.d. is a long-standing market player in all business
segments, with elabourate processes that enable the identication,
monitoring and management of risks in accordance with applicable
legislation and internal goals. The Group's experience and an expert
ESG working group formed by employees of relevant departments
in the eld of environmental impact management, employees and
the business environment enabled a thorough analysis of business
activities and business locations, effectively identifying key impacts,
risks and opportunities related to environmental pollution.
A special focus was placed on the ecology segment, where the
measurement of emissions into water and air is integrated into
regular business processes, thus ensuring compliance with
applicable environmental standards and legislation. The waste
management segment, which is subject to strict regulations and
represents an activity of public interest in terms of environmental
impact, is the focus of signicant attention when assessing the
Group's environmental impact.
With a focus on these key business segments, the Group has
conducted a comprehensive analysis of all companies in the
markets in which it operates, including stakeholder surveys. This
approach has made it possible to apply the due diligence process
and draw appropriate conclusions regarding the materiality of the
environmental impact of pollution, thereby striving the Group to
improve its environmental practices and the long-term sustainability
of its operations.
In the ecology segment, environmental effects arise in terms of
emissions into water and air, where emissions into the air are
associated exclusively with the recycling process on the market of
the Republic of Croatia. Polluted water from the recycling production
process is disposed of as waste, which prevents direct discharges
into the environment. Pollutants that can be found in potentially
contaminated rainwater from asphalt surfaces must be within
the set limit values, thus ensuring compliance with environmental
standards and environmental protection. The Group takes measures
that minimize these negative effects, ensuring that emissions
remain within the legal permissible values and values dened by
environmental permits.
The effects of the recycling and waste management processes on the
environment and the reduction of pollution were primarily identied
as positive. The recycling activity reduces the need for mining new raw
materials, which reduces industrial pollution, emissions associated
with the acquisition of raw materials, while the waste management
activity reduces pollution caused by improper waste disposal. CIAK
Group's waste management processes also include the remediation
of contaminated sites, which contributes to the reduction of soil,
water and air pollution and the restoration of biodiversity and
water quality. The Group's activities in the environmental segment,
especially in the recycling and waste management process, are
recognized as key to achieving sustainability, as they have a direct
and positive impact on the environment.
As business in the waste management segment is a highly regulated
activity, changes in regulations may require certain measures
that require investments in infrastructure improvement, change
of business practices, or procurement of environmentally friendly
technologies.
CIAK Group has the relevant permits and certicates for performing
waste management activities. The activity contributes to the
minimization of pollution and harmful emissions and reduces the
need for the use of new resources and is an example of implemented
circular economy processes. This can have a positive impact on the
price of the Group's securities, the possibility of more favourable
lending, the creation of new partnerships and a better reputation of
the Group, which represents a nancial opportunity for the Group.
The identied signicant impacts of the Group in terms of pollution
arise from the ecology segment, specically from the waste
management and recycling sub-segments, and the signicance of
these effects has been determined at the level of the company CIAK
d.o.o. RH. The Group company has established a Management System
Policy that prescribes mandatory monitoring of relevant regulations
in the eld of environmental protection, including keeping an
updated list of applicable legislation and other requirements
applicable to the company's activities. In this way, the policy focuses
on the application of environmental permit requirements, which
additionally requires compliance of the Group's business processes
with the high industry standards of environmental protection. The
environmental permit requires that all processes within the Group
comply with environmentally friendly practices, including reducing
emissions, optimizing resource consumption and responsible
waste management. It specically impacts the mitigation of
negative effects of pollution by setting emission limits for pollutants,
monitoring and reporting obligations, and requirements for the
application of available techniques.
The policy includes a process of identifying and evaluating
environmental aspects, as well as setting specic environmental
goals. As part of the monitoring process, the requirements for
measuring and analysing environmental impacts are emphasized.
The policy also requires the application of established procedures
for monitoring and evaluating environmental aspects.
The management system dened within the framework of this policy
is established and documented to the extent that enables systematic
and effective management of the company's environmental impact.
71
CIAK Group implements pollution reduction measures in
accordance with the environmental permits issued for
each location subject to obtaining a permit. In accordance
with the applicable regulations of the Republic of Croatia,
measures based on the available techniques are applied.
The implemented measures are continuously implemented
through business, with regular control of pollutants into the
environment according to the dynamics prescribed in the
environmental permit. At the locations of companies where
required by regulations, Civil Protection Operational Plans
have been established, which include preventive measures
to prevent sudden events. The Group ensures compliance
with applicable regulations, regularly conducts monitoring
and takes corrective actions as necessary, thereby
minimizing the negative impact on the environment.
CIAK Group harmonizes its operations with applicable
legal regulations and environmental permits that dene
target values for substances that pollute air and water.
Emissions to air and water are regularly controlled to ensure
compliance with the prescribed limits. These controls
enable companies to actively manage their environmental
impact, ensuring that polluting effects are minimized
and contribute to environmental conservation through
responsible business operations and the implementation of
sustainable environmental practices.
In accordance with the applicable environmental
permits of the Group, authorized labouratories carry out
measurements of air emissions and wastewater analysis.
From these measurements, the quantities of pollutants
are calculated. Below, there is an overview of the quantities
of pollutants generated at the location of the company
C.I.A.K. d.o.o., according to the segment of activity in which
the signicance of the topic was determined. The display
includes all pollutants from the list of pollutants applicable
to the Group.
The Group publishes the quantities of pollutants for the
observed reporting period, which is also the rst reporting
period and will represent the base year in the following
periods.
CIAKGroup'swastemanagementprocessesalsoincludetheremediationof
contaminatedsites,whichcontributestothereductionofsoil,waterandair
pollutionandtherestorationofbiodiversityandwaterquality.TheGroup's
activitiesintheenvironmentalsegment,especiallyintherecyclingandwaste
managementprocess,arerecognizedaskeytoachievingsustainability,asthey
haveadirectandpositiveimpactontheenvironment."
C.I.A.K. d.o.o. Hrvatska
Pollutants in kilograms
Total suspended substance
179.79
Chemical oxygen demand by dichromate (as O2)
(COD)
195.74
Biochemical oxygen demand after ve days
(BOD5)
5.86
Total organic carbon (TOC) (as total C or COD/3) 25.72
Sulphur oxides expressed as SO2 1,761.71
Oxides of nitrogen expressed as NO2 11,314.83
Carbon monoxide (CO) 1,929.22
Carbon dioxide (CO2) 903,041.73
Sulphides (S2-) 0.20
Sulphates (SO42-) 21.46
Halogenated organic compounds (such as AOX)
(9)
0.27
Phenols (as total C) (13) 0.11
Total aromatic hydrocarbons 0.03
Hardly volatile lipophilic substances (total oils
and fats)
38.75
Total hydrocarbons 4.47
Cadmium and its compounds (as Cd) (19) 0.13
Chrome 6+ (Cr6+) 0.33
Copper and its compounds (as Cu) (19) 1.07
Mercury and its compounds (as Hg) (19) 0.01
Nickel and its compounds (as Ni) (19) 0.33
Lead and its compounds (as Pb) (19) 66.21
Zinc and its compounds (as Zn) (19) 0.91
Iron (Fe) 0.49
Particulate matter 8.07
3
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
72
Resource use and circular economy
CIAK Group, in addition to being the signicant distributor, collector and recycler of batteries in the region since 1994, has also proven
itself as a socially and environmentally responsible partner through the CIAK EcoCycle program; a business model that describes the
circular economy. CIAK Group produces, sells, collects and then recycles old batteries and accumulators and maximizes the usability of
the obtained raw material for the next production cycle. CIAK EcoCycle is an exceptional example of a circular economy and an indicator
of how it is possible to harmonize environmental, economic and development goals at the Group level.
The business model of this segment is set up in such a way that the obtained raw materials are sold after the recycling process to
foreign buyers who are also battery manufacturers. Subsequently, such buyers of raw materials sell the nished new batteries to the
Group as suppliers of the battery and oil distribution segment, based on contracts that established multi-year cooperation.
Battery buyback is done in two ways:
• active (B2B) in collection stations and mechanic shops, end users who have a larger vehicle eet, and
• passive (B2C) through the "old for new" model, whereby the Group uses its own retail network and network of service partners,
which consists of a total of 120 (one hundred and twenty) points of sale, making it the largest purchase network in the region.
4. ECOCYCLE
Sustainable circular economy in Croatia - CIAK EcoCycle (VIDEO)
.
.
.
C.I.A.K.
recovers old batteries
in its Recycle center and
manufactures lead for
production of
new batteries.
C.I.A.K.
collects old
batteries from
stores and repair
shops.
Repair shops
install new
batteries
and collect old
batteries.
Stores sell
new batteries
and collect
old waste
batteries.
C.I.A.K.
sells new
batteries.
4
73
HAZARDOUS WASTE
EXPERT CONSULTING AND
ENVIRONMENTAL PROTECTION
REMEDIATION OF
CONTAMINATED SITES
CLEANING AND MAINTENANCE
OF INDUSTRIAL PLANTS
NON-HAZARDOUS WASTE CIAK LABORATORY
C.I.A.K. annually manages over
30.000 tonnes of hazardous and
non-hazardous waste
Obligation to conduct
environmental impact studies is
dened by environmental laws
Contaminated locations and industrial
plants present a potential threat to the
environment
Cleaning and maintenance of water
drainage systems, cleaning and
maintenance of industrial equipment
We provide waste management services
for signicant number of partners
We examine and clean hundreds of
kilometres of drainage systems of
Croatian Motorways
The rst activities began in 1994 with the organized collection of old
batteries and their treatment, followed by the expansion of activities
to all other hazardous/non-hazardous waste, but also to other
activities related to environmental protection. CIAK Group manages
over 40 thousand tons of hazardous and non-hazardous waste per
year. The Group has experience in the management of all types and
categories of waste, with a maximum capacity of over 70 thousand
tons per year.
The company has established cooperation with a large number of
economic entities from which it takes, transports, processes and
disposes of hazardous and non-hazardous waste on a daily basis.
Part of the collected waste is handed over to authorized processors
in the country or abroad, and part is processed at the locations of
the company C.I.A.K. d.o.o. After treatment, part of the waste is
handed over for further recovery/disposal procedures to authorized
processors in the country or abroad.
The Group's entry into the waste management market was in 2000 in
the former waste management centre in Vojnić, and it has signicantly
developed with a greeneld investment for the construction of a
waste management centre at the location in Zabok. The greeneld
investment in the Accumulator and Battery Recycling Centre is an
example of harmonizing the economic and development goals of the
company with the ecological ones. C.I.A.K. d.o.o. has established the
only centre for CFCs in which it receives controlled substances and/or
uorinated greenhouse gases from refrigeration and air conditioning
equipment, from authorized service providers. Also, CIAK Group
has established its own testing labouratory as a natural sequence of
performing the activities of remediation of contaminated sites and
industrial plants.
The Centre for Hazardous and Non-Hazardous Waste Management in
Zabok was purpose-built for these purposes and has all the permits
prescribed by the competent Ministry. There are also vehicles at
all locations, adequately equipped for logistics procedures with
hazardous and non-hazardous waste. In addition to infrastructure
and logistics, employees with many years of work experience in this
sector are preferred, from waste handling in the warehouse, through
administrative and commercial tasks to expert engineers. The Centre
for Recycling of Accumulators and Batteries in Zabok processes a
signicant quantity of lead-acid batteries in Croatia.
In order to consistently implement strategic and planning documents
for the management of waste batteries and accumulators and the
organization of the waste accumulator and battery management
system in accordance with legal regulations, the Group recovers
signicant quantities of accumulators from the Croatian market and
stands out as an example of the implementation of processes that
have a positive impact on sustainability.
In addition to collecting and processing and using modern
environmentally friendly technologies in battery processing, based
on the principles of sustainable circular management, CIAK Group is
also working on raising awareness and educating users through its
projects in order to increase the amount of waste batteries handed
over for processing and reduce the amount of those that end up
inappropriately discarded, which thus endanger the health of humans,
animals and plants.
In its plants, the Group tend to use state-of-the-art technology and
state-of-the-art production methods, and all recycling processes are
in line with industry and environmental standards. In this segment, it
has a signicant share in the waste management market. To perform
waste management activities, it has all the necessary permits issued
by the Ministry responsible for environmental protection.
The signicant impact of the CIAK Group in the eld of circular
economy is manifested in business activities that form an integral part
of the CIAK EcoCycle program. The program focuses on the collection
and recycling of old lead-acid batteries. This program represents an
example of a circular economy because it successfully integrates
environmental, economic and development goals. Points of sale
sell new batteries to customers and take over old ones, while vehicle
maintenance services and car repair shops also take over old
batteries when replacing worn-out ones. The collected batteries are
4
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
74
then sent to a specialized recycling Centre, where lead is obtained from
them, which is sold again as raw material to produce new batteries. This
closed system has a positive effect on reducing the amount of waste in
landlls, reducing the need to use new resources, and thus contributes
to the preservation of natural raw materials such as lead.
CIAK Group has all the necessary permits and certicates, including
ISO 14001, which guarantees that the processes are carried out in
accordance with environmental standards and legislation, which
further contributes to the sustainability of its activities.
The Group conducted a detailed review of its assets and activities to
identify actual and potential impacts, risks and opportunities that could
be identied in circular economy processes. Methodologies that include
business process analysis with input from an expert ESG working group
were used, focusing on key areas where impacts are expected.
In addition, the Group has consulted key stakeholders through
meetings, consultations and surveys, ensuring the active involvement
of stakeholders in identifying signicant impacts, considering their
knowledge of the business and interaction with the Group.
CIAK Group's approach to policies related to the circular economy
is based on cooperation with environmentally conscious suppliers
who adhere to environmentally responsible standards and support
sustainable business practices. This approach is particularly evident
in the IAM segment, where batteries are purchased from suppliers who
use recycled lead from the CIAK Group's recycling process.
Procedures in waste management include the use of assessment
criteria and methods to determine which waste goes to recycling
and which must be disposed of in another way. This process involves
cooperation with authorized waste disposal providers and recycling
Centres, ensuring proper waste treatment in accordance with
applicable legislation and environmental standards.
CIAK Group, as a distributor of batteries, actively integrates the
principles of circular economy into its business practice. Through
responsible battery life cycle management, the Group ensures that
batteries placed on the market are properly recycled through clearly
dened and described procedures. Customers can return used
batteries and treat them in accordance with the latest environmental
standards. This approach is not only in line with current legislation but
also represents a key element of the Group's commitment to reducing
waste, encouraging the reuse of resources and contributing to
sustainable development.
CIAK Group implements measures related to the use of resources
and the circular economy through the opening of locations for retail
purchase and handover of batteries, thus enabling customers to
return end-of-life batteries. Also, in its offer, the Group promotes the
sales activity of replacing "old for new", which encourages customers
to return old batteries. These measures contribute to increasing the
amount of collected batteries and create a positive effect by actively
encouraging the process of proper disposal through the recycling
process, ensuring safe and environmentally friendly disposal and reuse
of resources.
The goal of CIAK Group is primarily to increase the number of collected
batteries by expanding the network of locations for the delivery of old
batteries and their retail purchase, as well as increasing business in the
recycling process within the existing capacities. The long-term plan
includes improving the capacity for collecting and recycling batteries by
installing new equipment, which plans to increase capacity, which will
signicantly reduce the environmental risks associated with improper
disposal of batteries and prevent soil and groundwater pollution.
The introduction of quantitative goals of the Group will be considered in
the coming periods, following the analysis of the collected data.
CIAK Group manages a signicant amount of hazardous and non-
hazardous waste annually. The Group focuses on further development
of business in the eld of waste management, building long-term
partnerships with service users and cooperation with European
companies for hazardous waste management, which operate in
accordance with the environmental regulations of the European Union
and high operational standards in waste recovery procedures.
At the points of sale of CIAK Group member companies, it is possible to
pick up waste lead-acid batteries free of charge without the obligation
to buy new ones. Documentation is kept for the collected batteries
in accordance with the regulations. In retail stores, a certicate of
acceptance of batteries and payment of a fee for the return of old
batteries is issued, which ensures transparency of the process and
compliance with legal obligations.
The company C.I.A.K. collects waste accumulators from retail outlets
of CIAK Group members, as well as from other legal and natural
persons in Croatia, and hands them over to the Accumulator and
Battery Recycling Centre. The company C.I.A.K. d.o.o. in Slovenia, as
an authorized collector, takes over waste lead-acid batteries from legal
and natural persons in Slovenia and exports the collected quantities to
Croatia, to the Centre for Recycling of Accumulators and Batteries in
Zabok. Similarly, the company C.I.A.K. d.o.o. in Bosnia and Herzegovina
takes over waste lead-acid batteries and exports part of the collected
quantities to the Republic of Croatia, also to the Centre for Recycling of
Accumulators and Batteries.
The Centre for Recycling of Accumulators and Batteries in Zabok
receives lead-acid batteries collected in the Republic of Croatia, as well
as imported quantities from abroad, which ensures responsible and
environmentally friendly management of waste batteries through the
recycling process, in accordance with applicable legislation.
In 2024, the CIAK Group carried out the activities of collecting waste
accumulators in recycling and waste management activities and has
removed signicant quantities from the markets in which it operates,
which is classied as hazardous waste, which represents a signicant
positive impact on the environment. The collected quantities are mostly
used as inows in the circular economy process and are recycled as part
of the types of waste management.
4
75
4
4.2. WASTE MANAGEMENT
Display of total waste inows
and outows
Total
amount
of
waste
Share
according to
the disposal
procedure
in the total
quantities
of disposed
waste
Total
amount of
hazardous
waste
Share
according
to the
disposal
procedure
in the total
quantities
of
disposed
waste
Total amount of waste inows* 38,307 32,211
000 t % 000 t %
Amount
of waste
according
to waste
management
procedures
Recycling 22,348 56% 16,123 54%
Other recovery procedures 6,144 15% 2,734 9%
Incineration
4,774 12% 4,740 16%
Landfill
1,477 4% 1,300 4%
Reuse
0 0% 0 0%
O
ther disposal methods
5.191 13% 5.191 17%
Total amount of waste outflow** 39.934 30.087
The Group manages waste generated in all business processes
responsibly and with the aim of reducing the amount of waste that
does not go into the recycling process. At almost all the Group's
business locations, there are containers for sorting batteries, as
well as appropriate containers for separating municipal waste and
packaging. CIAK Group hands over most of the waste generated from
regular operations to the Group company C.I.A.K. d.o.o. for further
management processes, thus ensuring proper waste management in
accordance with applicable regulations and environmental standards.
A signicant part of paper, cardboard and plastic packaging is handed
over to reputable partners authorized for the management of this
type of waste, most of which is handed over to partners who perform
recycling services and other packaging recovery procedures.
The largest part of the presented quantities of hazardous waste
generated from the operations of the Group companies refers to
collected waste accumulators, which are signicantly recycled at the
Group level. The Group hands over a signicant part of the packaging
waste generated from operations for recycling and other recovery
operations, and this part has a signicant positive impact on the
conservation of resources and contribution to the circular economy.
8
8% of the waste generated in the business and the raw material
collected for further recycling in 2024 was handed over to the
waste management procedures of the company C.I.A.K. d.o.o. This
company sends a signicant part of the total collected waste and raw
materials to the recycling process (54%, while of the total quantities
of hazardous waste it manages, as much as 50% is recovered through
this process. In line with its strategic sustainability goals, the company
plans to increase its recycling capacity.
Data on waste management procedures are presented based on data
from companies that carry out waste management activities.
In the process of production of lead ingots and recycling of lead-
acid batteries, a semi-nished product is created in the form of a
lead residue that can be subsequently used in the re-production
process. Considering the existing permits, the Group may store semi-
nished products of lead residues to a certain level in accordance
with regulatory provisions, until permits are obtained for
the implementation of the lead residue exploitation project.
According to the regulations, lead residue is considered hazardous
waste since it contains lead, which can be utilized in the production
process.
Above the defined levels determined by the relevant permits and
until the implementation of the project, the Group places the
surplus of semi-finished lead residues through its contractual
partners, and the output quantities of this semi-finished product
are included in the presented Group's waste outflow.
Companies operating in the segment of waste management activities
achieve a signicant impact on the environment by collecting and
managing almost 40 thousand tons of waste per year. All received
waste is processed through management procedures, guided by
the approach of environmental sustainability and striving to make
the share of the recycling process in the overall waste management
procedures the most signicant.
A signicant part of these quantities refers to hazardous waste,
which is then disposed of to the smallest extent by the disposal
process, while the highest share of the output amount of waste in
the total management procedures is recycled (54%). In 2024, the
Group carried out a total of over 30 thousand tons of hazardous waste
management activities through recovery or disposal procedures. The
companies are continuously working on further modernization of the
facilities and the use of procedures that minimize the impact on the
environment. Through hazardous waste management activities, the
Group greatly contributes to environmental goals.
The data presented in the report, as well as all other related relevant
data, are collected regularly in accordance with legal regulations in
companies that perform waste management activities.
*The Group's waste inows include
inows covered by waste management
activities, which also include the inow of
resources in the circular economy process
**The Group's waste outows include
outows covered by waste management
activities, which also include the amounts of
inows in the circular economy process, all
quantities of plastic and paper packaging,
and the amounts of sludge, dissolution
and breakage generated by the business.
The included data on the amount
of waste disposal generated from
business refers to the Croatian market.
In the coming periods, the Group will expand the
scope of data collection on business waste to
other markets in which it operates.
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
76
ThebasicprinciplesofCIAKGroup
employeemanagementinclude
ensuringasafeandhealthyworking
environmentforallemployees,
theirdevelopmentandeducation,
andmaintainingabalancebetween
employees'privateandbusiness
lives."
77
Own workforce
The greatest value of the CIAK Group is its employees, and their
safety, needs, motivation, satisfaction and protection were
a priority for the management during 2024 as well. Attaching
great importance to responsible and ethically based conduct
in business, the Group respects the principles of ethics in all its
business relationships and acts in accordance with the principles
of responsibility, truthfulness, eciency, transparency and
quality. Every day, we provide equality for employees, accepting
their diversity, providing them with equal opportunities for
employment, promotion, education and rewards.
Given the diversity of segments in which CIAK Group operates and
the regional distribution of subsidiaries, it is very important to
strive for simplication of communication channels and processes,
transparency and availability of information. Accordingly,
communication channels have been created that reect this
strategy and enable a quick and easy ow of information between
all employees of the Group.
In 2023, the "Intranet“ project was launched. The idea of this
project is to provide employees with a single point of access
to the common information they use in their daily work – from
procedures and forms related to the execution of workplace tasks
to information such as benets that the Group provides to its
employees.
During 2024, the Group continued to develop an "onboarding"
process for all new employees. This process accelerates, and thus
facilitates, the adaptation of new employees and introduces them
to the functioning of the Company in which they are employed in a
warm and collegial way.
In 2024, CIAK Group employed over 300 workers in Croatia in all
areas of business and continues to continuously improve and
reward its employees by recognizing their efforts, collegiality and
willingness to progress.
The basic principles of CIAK Group employee management include
ensuring a safe and healthy working environment for all employees,
their development and education, and maintaining a balance
between employees' private and business lives. CIAK Group
continuously invests in its employees through various channels of
education, rewarding and communication, acting in accordance
with positive business practices of employee management.
CIAK Group employs a signicant number of employees who
perform various business activities, including production,
transport, sales, warehousing and administrative activities.
Given the diverse operational processes within the Group, the
workforce impact analysis began with a segmented approach,
the conclusions of which were subsequently consolidated at the
Group level. In this way, it is ensured that the analysis covers all
employees and their specic roles within the organization.
The impact on employees' rights prescribed by law was analysed,
including the right to adequate working hours and rest, the
right to a safe and healthy working environment, the right to fair
remuneration, the right to parental leave and family protection, and
the right to protection from discrimination. The impact on rights
that are not explicitly regulated by law, such as the right to working
conditions that enable personal and professional development and
the right to professional development, was also analysed.
CIAK Group conducted a comprehensive analysis of its
organizational structure and internal acts, considering key aspects
of human rights accountability, evaluation of existing policies and
procedures, and effectiveness of reporting mechanisms.
On 31 December 2024.
CIAK Group had 3,409
employees, which is 751
employees more than on
31 December 2023.
5
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
78
The responsibility of CIAK Group in exercising the human rights
of employees in the workplace arises from the nature of the
relationship between the employer and the employee. Therefore,
the Group as an employer actively implements policies and
initiatives that have a positive impact on working hours, access
to employment and working conditions, work-life balance, income
and adequate remuneration, and professional development of
employees.
CIAK Group ensures respect for the human rights of employees
through the Labour Regulations. The activities of the local and
central human resources team are focused on the well-being
and exercise of all rights that employees have. The Ordinance
denes the rights of employees, including the right to respect
for working hours, a safe working environment, remuneration
corresponding to the work performed, annual leave, sick leave and
work-life balance. It also ensures the right to privacy, equality in
employment and prevents discrimination based on gender, age,
ethnicity and other personal characteristics. The Central Human
Resources Department oversees the implementation of these
policies, providing employees with legal certainty and equality in
employment relations.
CIAK Group has also implemented all measures in accordance with
the regulations on occupational safety through the development
and application of the Rulebook on Occupational Safety, which
covers in detail the specics of processes within different
business segments by applying adequate protection measures.
The Ordinance includes risk assessment, employer's obligations
regarding safety at the workplace, employee training and the use
of protective equipment, which ensures the protection of the
health and safety of all employees.
By implementing these measures, CIAK Group actively contributes
to the realization of human rights of employees, ensuring a safe
and healthy working environment, the right to protection from
injuries and accidents, and the right to be informed about safety
standards. These measures protect the basic human rights of
employees, including the right to life, health and decent work.
CIAK Group continuously ensures respect for the human rights of
employees, not only through the development and implementation
of internal acts and measures in accordance with the applicable
legislation, but also through additional activities resulting from the
draft sustainability strategy of the Group in terms of managing its
own workforce.
• A structured and centralized approach to employment in CIAK
Group ensures respect for the human rights of employees
by providing equal opportunities to all candidates applying
for open competitions. The process is based on a clear job
description and the selection of candidates according to the
qualications and requirements of the job, thus guaranteeing
equality and impartiality. This approach respects human rights
such as the right to equality, the right to work and freedom
from discrimination.
• Through an annual analysis of the volume of business activities
and human resources capacities and planning the number of
employees in the planning process, the Group ensures the
compliance of all operations with regular working hours, thus
protecting the human rights of employees to fair working
conditions and the right to rest.
• The process of introducing new employees is adapted to the
specics of the workplace, with the assignment of a mentor
who ensures a smooth transition and adaptation to the work
environment and corporate culture. This process promotes the
right to professional development and education, as well as
the right to access information, as mentors provide employees
with crucial information to get started successfully.
• Through the Intranet, employees have quick and easy access
to the information needed for their daily business activities,
which contributes to their right to information and freedom of
expression.
• The Group ensures timely payment of wages and offers various
benets, including performance-based incentives, nancial
support for specic situations such as childbirth and deaths,
and additional compensation for personal expenses, thus
ensuring the right to fair remuneration for work performed and
social security.
• By providing exibility in working hours, where applicable in
accordance with the duties of the workplace, and the possibility
of using days off for family obligations, the Group contributes
to the work-life balance of employees, thereby supporting
human rights to family life and equality in employment.
• Resources for professional growth are available to employees
with regular organization of internal training, which ensures
the right to education and personal development.
• In addition, CIAK Group encourages employees to undergo
regular health check-ups and engage in sports activities, thus
ensuring the right to health and well-being in the workplace.
For the use of these services, the Group provides benets to
employees.
Through all these activities, CIAK Group actively contributes
to the realization and protection of human rights of employees
with a signicant impact on the right to equal treatment and
opportunities, the right to fair working conditions, the right
to fair remuneration and the right to education and personal
development of employees.
Risks for CIAK Group in the context of implementing activities that
have a positive impact on the human rights of employees include a
potential increase in operating costs.
5
79
On the other hand, these activities bring signicant opportunities,
including reducing employee turnover, increasing loyalty, improving
work performance, and employee innovation, especially through
continuous investment in employee professional development. A
high employee retention rate directly impacts business processes
and operational eciency, leading to improved business results.
Also, the development of employee expertise reduces the need
for external associates, which reduces the cost of using external
services.
Indirect opportunities also include doing business without
penalties and legal disputes in the eld of labour law.
CIAK Group has established the Labour Regulations as a key
policy for managing the effects, risks and opportunities related
to its own workforce, covering all employees. This policy ensures
compliance with applicable legislation and respect for certain
human rights in the eld of labour relations. Through the Labour
Code, the Group applies international standards such as the UN
Principles on Human Rights and Business and the International
Labour Organization guidelines.
The Ordinance covers key aspects of employment relations,
including the rights and obligations of employees, safety at work,
maximum working hours, wages, work-life balance, employment
and termination procedures, and the prevention of any
discrimination. The abuse of child labour is prohibited, and special
rights are guaranteed to mothers and pregnant women. The Group
strongly supports the prevention and suppression of all forms of
activities related to tracking in human beings.
The Rules of Procedure also contain the described mechanisms
for ling reports or complaints, i.e. possible reports on human
rights violations.
The Management Board is responsible for the implementation of
the Rules of Procedure in the CIAK Group, with the support of the
Human Resources Department, participates in the implementation,
staff training and compliance monitoring. Also, managers and
team leaders ensure the application of the guidelines of the
Regulations within their teams, which guarantees compliance
with policies and legislation at all levels of management.
The Ordinance on Occupational Health and Safety in CIAK Group
denes guidelines and measures to ensure the health and safety
of employees in the work environment. This document covers risk
assessment, preventive measures, procedures in the event of
accidents or injuries, and employee training on safety standards. It
also includes the obligations of employees and employers in order
to minimize hazards and maintain safety in the workplace.
The responsibility for the implementation of the Occupational
Safety and Health Ordinance lies with the management of CIAK
Group, while the implementation of specic measures is delegated
to the Group's management staff.
CIAK Group recognizes parents who care for children as a
particularly vulnerable group and provides them with all legally
guaranteed rights, including the right to parental leave, exible
working hours and return to work, which is regulated by the Labour
Regulations. The Group also applies discretionary measures,
such as working from home or exible working hours, to facilitate
work-life balance. Through these initiatives, CIAK Group not only
ensures compliance with legal norms, but also actively promotes
work-life balance and supports the professional development of
parents in the organization.
Cooperation with our own workforce is key to achieving business
goals and sustainable business. The basis of cooperation
with employees is daily communication between employees
and operational management, which enables the collection of
important inputs for making business decisions. These inputs can
come from employee initiative or through a proactive operational
management approach, which encourages employee engagement
to improve the business. The hierarchical structure of the Group is
not deep, which allows for exibility and fast, direct communication
between the top and bottom management, so that feedback can
be quickly used for change proposals and Group decision-making.
Cooperation with employees takes place through all phases of the
business cycle, from setting goals to monitoring their realization.
In the phase of setting strategic goals, specically in the market
research process, employees who are actively involved in the
relevant processes for the achievement of these goals provide
key inputs. Live meetings with employees are the main channel
for communication at this stage. In the nal stages of dening
the plan, the Management Board transmits information to the
lower management through written communication. This phase is
carried out at least once a year when setting the Group's strategic
and operational goals.
In the implementation phase of goals and strategies, employees
at all levels of the hierarchy not only actively implement the
implementation but remain crucial for the continuous collection
of information that allows decisions to be made about the
continuation of implementation or necessary adjustments.
Information is collected through regular reporting, either in writing
or orally by lower and middle management, continuously during
implementation.
In the phase of monitoring the implementation of the strategy
and the achievement of goals, information is collected at all
levels of management, so that the most strategically appropriate
decision can be made at any time. This phase includes regular
pre-set reports, ad hoc reports, and meetings at set intervals,
continuously throughout the year or as needed.
Communication between the Management Board of the Group
and employees takes place mostly through the directors of the
5
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
80
5
companies, who collect commercially important information and
ensure that it reaches the Management Board. All employees can
communicate directly with the Management when there is a need
for it, and the Management also encourages direct communication
with employees, where applicable.
In the context of workforce management, the human resources
department analyses the information received from employees
in order to evaluate the need to adopt measures of guidance,
employee training, improvement of the working environment
and guidance of management in workforce management. Human
resources collect this information through direct communication
with employees and through employee satisfaction surveys.
The effectiveness of cooperation with the workforce is measured
through business KPIs and human resources KPIs, in order to
assess whether cooperation, in addition to stable processes
that result in ecient business management, has also led to a
work environment in which employees feel valued and included.
Evaluation is carried out in formal and informal ways, by monitoring
employee turnover by companies or departments, direct
communication with management and employees during their
working life and during exit interviews and conducting employee
satisfaction surveys.
The Group's business strategy includes goals related to the impact
on employees and they are of a qualitative nature. Based on the
analysis of the collected data and further activities related to the
development of the sustainability strategy in the coming periods,
the Group will consider the possibilities and the need to dene
quantitative goals in the observed area of activity. When dening
the objectives, the Group will use the data contained in the rst
reporting year for the baseline values.
In the context of managing the effects on human rights in labour
relations, CIAK Group recognizes the importance of cooperation
with employees when developing measures that ensure respect
for their rights. Employees are actively involved in the decision-
making process through meetings and periodic interviews with
superiors and at certain intervals with the human resources
department, ensuring that measures are based on their real needs
and experiences. Transparency and open communication are
key in this process. Monitoring and evaluation of implemented
measures is carried out through employee feedback and surveys,
which enables the timely detection of potential shortcomings
or the need to improve measures. Support is provided through
advisory services and a system of anonymous reports, which
further protects the human rights of employees. Through this
cooperation, CIAK Group contributes to the creation of a motivated
work environment, which has a positive effect on employee
productivity.
The Rules of Procedure and the Rulebook on the Procedure for
Internal Reporting of Irregularities in the CIAK Group dene
measures to remedy negative effects on employees who express
concerns or report potential irregularities. The Rules on the
Internal Whistleblowing Procedure ensure the protection of
whistleblowing staff, including the prohibition of any retaliation,
discrimination or negative consequences for whistleblowers.
This approach allows employees to report irregularities in a safe
environment. The Ordinance also guarantees the condentiality of
reports, thereby protecting the identity of the employee reporting
irregularities, ensuring the safety and privacy of the whistleblower.
CIAK Group provides effective channels for reporting employee
concerns in order to preserve the safety and integrity of the work
environment. Employees have their own representative in the
Supervisory Board of the company, through whom they can present
any issues that are identied as relevant. Through regular open
meetings with management and with the support of the human
resources department, employees can voice their concerns.
These meetings provide an opportunity for transparency and quick
resolution of problems, thus creating trust and strengthening
cooperation.
Also, there are personal data protection ocers, who ensure
that all reported data is processed in accordance with applicable
legislation and practices for the protection of privacy.
CIAK Group employees are informed about the channels for
reporting concerns when signing the Employment Contract,
which enables them to have access to the internal acts and
regulations that dene the procedures for reporting irregularities.
The documents are available for inspection by employees. The
Human Resources Department regularly informs employees of
any relevant changes or facts relevant to them. Management
conducts regular periodic conversations with employees in order
to maintain an open dialogue and transparent communication.
Depending on the nature of the employee's concerns, the
Human Resources Department and, in certain cases, the Legal
Department are responsible for monitoring the resolution of open
issues. Through conducting periodic surveys and exit interviews,
the Human Resources Department monitors compliance with
procedures and evaluates the effectiveness of the channels for
reporting concerns.
In the event that the existence of an irregularity affecting
the working environment or the human rights of employees
is established, the Labour Regulations and the Ordinance
on Reporting Irregularities dene appropriate remediation
measures. These measures may include correcting irregularities
or undesirable practices, conducting education and training for
employees to prevent similar problems in the future, introducing
new procedures or policies to improve the working climate
81
5
and ensure an ethical workspace, and conducting internal
investigations in cases of serious irregularities or reports involving
violence, discrimination or mobbing. Also, sanctions can be taken
against the responsible persons if it is determined that labour
norms or legal obligations towards employees have been violated.
Measures for managing the effects on employees are primarily
focused on the evaluation of the organizational climate,
management and organization of work through interviews
with employees and through periodic surveys on employee
satisfaction, in accordance with the possibilities and needs in all
companies of the Group. This forms the basis for the development
of organizational culture and the evolution of the organization in
accordance with the needs of employees and the market.
In the recruitment process, the Group's measure includes the
cooperation of the management of the Group companies or the
heads of departments and human resources departments in order
to ensure a transparent and high-quality selection process that
would provide potential employees with all relevant information
and at the same time the employees for the Group.
An important measure includes a centrally coordinated process of
short- and medium-term planning of the number of employees, in
which it is crucial to align the planned changes in terms of one's
own workforce with the planned development of the business,
which contributes, among other things, to the reduction of
overtime hours and the reduction of the workload of employees
through a carefully planned scope of work delegated to them.
Continuous introduction of specic IT solutions is a measure that
speeds up the work of employees and increases their eciency.
By working faster and more eciently, employees can perform
tasks faster and more precisely, which contributes to the interests
of the Group, better organization of working time and increased
employee safety when performing their tasks.
In CIAK Group, the measure of adjusting nancial benets
based on actual work performance and employee contributions
allows the Group to direct rewards and benets towards actual
achievements, creating a motivating environment that encourages
productivity. Employees who achieve high results receive an
adjustment of their nancial income, including bonuses and other
benets, which further motivates them to achieve better results.
While the companies within the Group have autonomy in managing
the teams, all performance-based nancial receipt decisions are
made in coordination with the responsible persons of the parent
company and the Group.
An additional measure of managing the effects related to
the workforce is the continuous education of employees in
accordance with the needs and personnel capabilities in each
member state of the Group. The need to participate in the training
is expressed through a conversation between employees and
superiors, considering business needs and budget, and they apply
to the directors for approval, and in certain cases to the human
resources department. Human resources direct the operational
management to, in accordance with the budget, identify the key
areas of employee development and the necessary education,
because it is the operational management, which is involved in
operational processes on a daily basis and in constant interaction
with employees, that has the greatest competence to assess
these needs.
Educating managers in the eld of employee management,
developing communication skills and educating managers on
methods of providing regular feedback to employees are measures
implemented with the aim of improving communication at all
levels, minimizing operational errors and optimizing employee
guidance in performing tasks, dening expectations and
deadlines. The training is coordinated, if necessary, by the central
human resources department.
The CIAK Group's Work Regulations are a key document that
regulates employment relations, rights and obligations of
employees and ensures compliance with applicable legislation.
It ensures that the legally guaranteed rights of employees
are respected and a standardized approach to workforce
management. The Ordinance covers key aspects of employment
relations, including employee rights and obligations, safety at work,
regular working hours, wages, work-life balance, employment
and termination procedures, prevention of discrimination, and
mechanisms for ling complaints or reports on human rights
violations.
Implementing and updating the rules, as well as instructing
employees in their rights and obligations, are extremely important
for complying with the requirements of positive regulations.
These procedures represent a key measure for managing the
positive impact on the human rights of employees with whom the
employment relationship is established.
CIAK Group monitors the effectiveness of the implemented
measures through regular reports on business results and the
achievement of key performance indicators dened at the level
of the human resources department for certain key indicators.
Communication with employees takes place through meetings
and individual conversations and occasional surveys, which
collects feedback on satisfaction and challenges in the application
of measures. Based on these data, the Group adjusts its strategy
and measures in terms of managing its own workforce in a timely
manner.
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
82
The data collected refer to data on the number and characteristics of the Group's employees as of 31 December 2024. The views contain
data on the number of employees, while as part of regular business processes, the collection of data on FTE and HC achievements is
carried out on a monthly basis at the Group level.
The data presented can be linked to Note 10 of the Group's Annual Financial Report.
13,2%86,8%
The overview below contains an overview of the number of
employees by countries in which the Group operates and
contains data for all countries in which the Group employs
more than 50 workers representing more than 10% of the
Group's employees.
5. EMPLOYEES OF CIAK GROUP
5
Gender Number of employees
Men 2,960
Women 449
Secondly 0
Not reported 0
Total number of
Employees
3,409
2024.
Women Men Another Not published Altogether
Number of employees
449 2,960 0 0 3,409
Number of full-time employees
366 2,427 0 0 2,793
Number of temporary
employees
83 533 0 0 616
Country
Number of
employees
Share in the
total number of
employees
Croatia 1,579 46%
Serbia 825 24%
Bosnia and
Herzegovina
624 18%
Montenegro 199 6%
Slovena 132 4%
Macedonia 46 1%
Kosovo 4 0%
Total number of
Employees
3,409 100%
Number of employees by gender on
31 December 2024.
Number of employees by gender and type of contract on 31 December 2024.
Number of employees by market on 31 December 2024.
83
In 2024, the number of employees whose employment
ended with the Group is 536. The reported number refers
to all employee departures during the observed period.
In the observed period, the turnover rate is 15,7% and was
calculated as the ratio of the number of departures to the
total number of employees of the Group on 31 December
2024.
The highest management level within the CIAK Group consists of the Management Board of the Group and the directors of the
companies operating within the Group, who are appointed based on relevant experience and level of knowledge of the industry and
business processes of individual companies. The Group's management is responsible for strategic management and decision-making
at all levels of the organization. In accordance with the process of making key decisions, the management of subsidiaries is obliged to
inform or seek the consent of a certain Member or Management Board when making signicant business decisions.
The number of employed men at the management level of CIAK Group as of 31 December 2024 is 29 (93,55%) and women 2 (6.45%).
In CIAK Group, salaries and remuneration of employees are aligned with market conditions and the legislation of the countries in which
the companies operate. The Group regularly monitors market trends to ensure that salaries and benets match the skills, experience
and contribution of employees, while respecting all legal obligations. Such an approach makes it possible to maintain competitiveness
and employee satisfaction.
In the CIAK Group, the average salaries of female employees do not deviate signicantly from the average earnings of male employees.
For the purposes of calculating the indicators below, monthly gross wages and benets in 2024 were collected. The data collected
contains values for individual companies of the Group.
Ratio of the highest paid employee of the Group
tothe average salary of the Group employee
6,90
*dened as the difference between the average gross monthly
earnings, uncorrected for working hours, of male and female
employees, expressed as a percentage of the average earnings of
male employees
*The ratio of the total annual compensation of the highest paid person
to the median of the total annual compensation for all employees
(excluding the highest paid person)
The Group had no nes, sanctions or compensation paid in connection with employment relations. Accordingly, no monetary
amounts related to such incidents or complaints have been recorded.
5
Age group
Number of
employees
Share of
employees
<30 926 27.2%
30-50 1,962 57.6%
>50 521 15.3%
Total number of
Employees
3,409 100%
Number of employees by age group on 31 December 2024.
Gender pay gap*
2,59%
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
84
Consumers and end-users
6. CIAK AUTO ACADEMY
6
With the development of technology in the automotive industry,
the complexity of vehicles has increased, and thus their
maintenance. In order for the independent aftermarket to remain
competitive in terms of knowledge and customer service in
relation to authorized service networks, continuous education of
mechanics becomes the key to success.
CIAK Auto Academy recognizes the importance of this segment
of supporting your business and for several years we have been
holding trainings together with our supplier partners such as
TMD Friction, Vale, Bilstein Group, ZF Friedrichshafen and others.
Through 140 seminars at more than 30 locations in Croatia, we
have brought the latest technologies of our suppliers closer.
Seeing the interest in deeper knowledge, we decided to take a
step further – to launch the CIAK Auto Academy.
CIAK Auto Academy was founded at the end of 2017. For this
purpose, we purchased a vehicle of the Euro V standard and sent
it for modication for thematic seminars. It is a vehicle from the
group, Škoda Octavia III, 1.6 TDI CR, 105HP from 2015. The vehicle
is prepared according to all European standards of the knowledge
seminar with the support of Eurospan>Car organization, which is part
of the AD International group. We have 8 different topics at our
disposal that round off the complete vehicle according to the
principle of working according to the methodology and didactics
of a modern mechatronics technician. The development of cars
has risen to a level where it is increasingly dicult for a "classic
mechanic" to catch up, and it is necessary to enter the issue
with a little more prior knowledge of the electrics itself and an
understanding of the operation of individual assemblies. The goal
of the CIAK Auto Academy is to bring knowledge closer to our B2B
customers as much as possible.
In 2022, the CIAK Auto Academy online internship will start
operating. The task of the online part of the academy is to
create digital educational content primarily for mechanics (B2B
segment). At the same time, the online Academy becomes a
kind of knowledge base of CIAK Auto and partners. Both parts
of the CIAK Auto Academy are independent, but their work is
intertwined. The CIAK Auto Academy project started in Croatia
and has been extended to all Group companies in the region,
primarily in the auto parts segment.
6. Workshop –
what and how
5. Complaints –
what and how
4. CR injection
(common rail)
3. A/C in-vehicle system2. ECU unit andsensors1.Vehicle electricity
Seminars are thematically divided into several steps (themes):
7. CAN/LIN-bus
data network
8. DSG clutch
0AM gearbox
DSG
85
6
CIAK Auto Academy is a unied set of lectures focused on the
professional development of car mechanics and mechatronics,
where both the theoretical and practical part of the classes takes
place at locations throughout Croatia.
In accordance with ESRS 2, CIAK Group identies all relevant
consumers on whom its business, range of products and goods and
services can have a signicant impact. The Group actively manages
relationships with consumers, considering their specic needs and
requirements in various business segments.
The effects of CIAK Group on consumers and end users are
manifested through several key aspects, including the quality of
the range and services and their development in accordance with
customer needs. The Group ensures reliable supply and availability
of goods, respects the agreed delivery times, thus enabling timely
delivery, and provides transparent information through various
channels, which enables customers to make purchasing decisions
based on complete information. The provision of transparent and
quality information stands out as a signicant activity of the Group
in terms of impact on consumers. In addition, CIAK Group pays
special attention to user experience, after-sales activities and the
protection of its customers' data. These effects result from the
Group's approach which, in addition to complying with applicable
regulations and monitoring their changes, also includes proactively
addressing consumer needs.
The largest percentage of customers in the auto parts distribution
segment are legal entities and craftsmen, including service Centres,
mechanic shops and smaller dealers. The Group regularly consults its
customers in this segment, integrating them into the development
of the product range and business processes. The availability of
products and new technologies and their application are of key
importance for these customers. Through the CIAK Auto Academy,
an additional signicant activity of the Group in terms of consumer
impact, the Group provides education that provides customers with
information on new technologies and market trends, helping them
meet market needs and maintain a competitive advantage.
The development and implementation of educational activities, such
as the CIAK Auto Academy, require certain nancial investments,
which does not pose a nancial risk for the Group because the costs
of conducting the workshops are planned as part of the regular
business planning process. The nancial opportunity is manifested
in the fact that educated customers, who better understand the
value of the relevant assortment and services of the auto-segment,
can signicantly contribute to increasing sales and strengthening
business relationships, which in the long run achieves a return on
investment and creates a competitive advantage.
Customers in the freight distribution segment are also legal entities
and craftsmen, including hauliers, large eet customers, mechanic
workshops and smaller dealers. Timely delivery of products is
crucial for these customers, as delays in delivery can cause business
downtime, reduced productivity, and increased operating costs.
CIAK Group ensures high-quality service and timely delivery, thus
minimizing the business risks of its customers.
CIAK Group, as a distributor of batteries, sells products to both Group
members and external customers, pays great attention to the quality
and safety of products. All batteries are subject to strict quality
controls, ensuring a high level of performance and longevity, which
is key to making the decision to purchase this part of the range for
vehicles. When purchasing a battery, the buyer receives a Product
Notice with the product, which contains instructions for use and
handling of the product, as well as instructions for disposal after loss
of functions, i.e. wear and tear.
End users are provided with information about products, their
potential effects on health and the environment and the manner
of use, directly by the company's employees orally, then through
the documentation that accompanies the goods (warranty cards,
instructions for use, marketing materials, etc.), but there are also info
phones for consumers. Companies that deal with wholesale inform
their customers through brochures, presentations and trainings
(CIAK AUTO Academy).
CIAK Group generates revenues in the ecology segment, especially
in the waste management sub-segment, from customers who
dispose of waste or use the collected waste as an energy source.
The Group provides waste collection and disposal services, helping
clients comply with environmental regulations and optimize
waste management costs. Through cooperation with CIAK Group,
companies avoid the risk of nes, reduce costs and manage waste in
an environmentally friendly way.
Lead buyers, who are also battery manufacturers, are a key group of
consumers in terms of sustainability. Their work has a direct impact
on the quality and availability of recycled materials, which enables
the further development of sustainable business solutions.
CIAK Group cooperates with large retail chains in Croatia in the
wholesale segment. For these customers, timely delivery of products
is essential to meet the demand of end consumers. The Group
consistently adheres to the agreed delivery dates, thus ensuring the
stability of business relations.
Customer relationships in all segments are carefully regulated to
ensure compliance with applicable legislation and standards. The
Group actively monitors changes in laws and regulations, enabling
timely adaptation of operations. All products are clearly labelled
with technical specications, instructions for use, installation,
maintenance and safety guidelines and are compliant with
environmental standards and recycling regulations.
CIAK Group guarantees that all products meet safety standards
and have the CE mark, which conrms compliance with European
legislation. After-sales service includes clear terms and conditions
of warranty, complaints and servicing, which ensures full customer
support at the time of such customer needs.
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
86
Employees are educated and trained to be able to provide professional
support to customers, improve their shopping experience and
contribute to the quality of the post-sales process.
Relations with customers are based on mutual trust, with particular
emphasis on agreeing on delivery times, specications and
requirements relating to quality, environmental protection, health
and safety of workplaces, energy eciency and road safety. This
approach allows for the continuous maintenance of long-term,
stable and mutually benecial business relationships.
The management system policy of CIAK Grupa d.d. clearly regulates
customer relations through the obligation to provide services and
deliver products that are compliant with relevant internal, national
and international standards. The Group places special emphasis
on meeting customer requirements, with priority on quality,
occupational health and safety, environmental protection, and
energy eciency. All processes within the company are subject to
established procedures that ensure consistency and high standards
in meeting customer expectations.
The policy also emphasizes the importance of long-term
cooperation with customers based on mutual trust, transparency
and harmonization of specic requirements. Through continuous
professional development of employees, CIAK Group strives
to maintain a high quality of services and responsibility for the
execution of tasks.
In accordance with the UN Principles on Business and Human Rights,
the Management System Policy promotes responsible business,
respect for human rights and the provision of safe and healthy
working conditions. The Group actively ensures the transparency
of information, the security of its products and services, and the
right to protect the privacy of customers. In addition, the Policy
ensures responsible business practices that include honesty, timely
delivery of products and compliance with legislation and customer
rights, including protection through clear warranty conditions and
complaints.
In its operations, the CIAK Group strives to harmonize its practices
with the UN Guiding Principles on Business and Human Rights,
the provisions of the Declaration of Fundamental Rights at Work
of the International Labour Organization and the OECD Guidelines
for Multinational Enterprises. No case of non-compliance with the
principles contained in these documents has been recorded.
This policy is available to all interested parties and communicated to
everyone who works for and on behalf of CIAK Grupa d.d.
Companies within the CIAK Group cooperate with end consumers
daily, providing them with information about products, their effects
on health and the environment, and how they are used. Information
is provided to users orally as well as through documentation that
includes warranty cards, operating instructions and marketing
materials. Consumers can also obtain additional information through
information phones.
For wholesale companies, communication with customers takes
place through brochures, presentations and trainings. For specic
products, such as tires or batteries, additional information sheets
are created to accompany the product, providing details about its
performance, conditions of use, and safety risks. These documents
help users make informed decisions about products that suit their
needs.
Cooperation with end consumers and business users takes place
through different phases of the business process, with the aim of
ensuring their well-being, satisfaction and respect for feedback.
In retail, the Group cooperates mostly with the end users of the
Group's product range, while in business relations with legal
users, communication is achieved through their proxies and
representatives. Cooperation includes dening and, if necessary,
revising contractual terms for jobs, which is the basis for long-term
cooperation to mutual satisfaction.
CIAK Group has developed long-term partnerships with business
entities, especially in the segments of ecology and waste
management, where waste disposal is carried out based on long-term
contracts. In the recycling segment, customers are also suppliers of
batteries, while in the IAM sector, smaller businesses, businesses
with large eets, such as trucks and buses, are regular customers.
Cooperation with these customers is crucial in the development of
the range. In all segments, cooperation with customers begins at the
stage of product sales with specics at the segment level in the form
of the need to conclude contracts or one-off purchases and takes
place up to post-sales activities.
The functions and key roles in the company responsible for engaging
with consumers include sales, marketing, and customer support
departments. This team ensures that the results of cooperation are
considered in all strategic and operational activities of the company,
thus enabling the alignment of business goals with the interests and
needs of end users.
In the event of adverse effects on consumers due to failures in the
cooperation phases, the company takes corrective measures in
accordance with the applicable legislation, the terms of the contract
(where applicable) or business communication with the consumer.
Depending on the situation, appropriate steps shall be taken to
eliminate irregularities, nullify or reduce the potential negative
impact on end-users and ensure the protection of their rights and
interests.
Consumers and end users can express their concerns or complaints
through a variety of channels, including customer service hotlines
and email addresses. The company undertakes to process the
received complaints in a fast and ecient manner and to provide
an appropriate solution in the shortest possible time, ensuring
transparency in the process of remediation of adverse effects.
In retail outlets, consumers can le a complaint about the purchased
product electronically or in writing to the company's headquarters,
which initiates the complaint procedure. The consumer will receive
6
87
a response to each complaint received within 15 days at the latest,
i.e. within the legal deadline. If the complaint is justied, appropriate
steps are taken in agreement with the consumer, such as replacing
the product or refunding the amount paid, if the reason for the
complaint cannot be eliminated in any other way. Every consumer
is familiar with the measures as they are based on applicable
legislation, contract provisions, as well as policies that are available
to stakeholders on the Group's website or upon request.
CIAK Group's measures to achieve positive effects on customers
and end users include several key aspects. Providing clear and
relevant information at the level of all sales channels and acting
in accordance with the policy of transparent communication at
all stages of cooperation enable customers to make responsible,
informed decisions, thus ensuring long-term partnerships and
customer loyalty. With the establishment of web sales, products
and information about them became available to all categories of
end users, including people with disabilities. The quality of services
and products is continuously improved through innovation and high-
quality standards with the aim of achieving customer satisfaction.
For this purpose, the Group uses customer feedback and internal
analyses. Management staff and other employees ensure that all
deadlines and customer requirements are met. The Group also
educates customers in the IAM segment through the CIAK Auto
Academy on new technologies, making it easier for customers
to adapt to new market demands, launching a new range and
developing long-term partnerships. Customer support via info
phone and e-mail has also been developed to resolve inquiries and
complaints, thus building trust and long-term relationships. The
protection of personal data within the Group's system ensures the
secure storage and use of data in accordance with the provisions of
the GDPR. Regarding specic measures, the Group aims to simplify
the treatment of waste batteries for all end consumers. The Group
companies have a developed network of business units that provide
retail purchase services for used batteries, while at most of the
Group's business locations there are containers for the disposal of
small batteries.
User feedback is collected regularly, which makes it possible to
constantly improve the offer and improve this function of the
business. These measures enable the provision of high-quality
service, transparency, responsible business operations and
contribution to sustainability. The effectiveness of these measures
is monitored through regular monthly reports and calculations
of key performance indicators as requested by management.
Effectiveness is also monitored through regular interactions and
customer feedback.
In the event of exceptional negative effects on consumers, CIAK
Group denes the procedures and necessary measures according to
the guidelines of the Legal Department and in accordance with the
applicable regulations and contractual regulations, if a contract has
been concluded with the customer. The Group's approach is based
on monitoring relevant regulations and their amendments, as well
as timely adaptation of internal processes, with regular feedback
from customers that serves as a basis for upgrading processes
and developing successful cooperation. Although the effects of
cooperation with consumers manifest themselves in different ways
in different business segments, the risk of damage in exceptional
situations remains the same. Although no negative impact on
consumers has been identied so far, nor have serious problems and
cases related to consumer human rights been reported, the Group
is taking appropriate measures to minimize or completely avoid the
occurrence of negative effects on end consumers and partners.
Partners with special characteristics that could be exposed to a
higher risk of damage have not been identied within the Group. The
risks arising from the effects on consumers relate to the incurrence
of costs and their growth in order to address consumer needs. These
risks are not identied as material, and they are managed through
the annual budgeting process. Risks are monitored as part of regular
reporting, and the necessary measures for amending the budget are
adopted if necessary. As part of the annual budgeting, resources are
allocated to manage signicant impacts on consumers. Resources
include human resources allocated to sales and post-sales activities,
expenditures to produce information materials and investments in
the education of business partners, employees and customers. All
signicant effects are analysed in the process of adopting a business
plan, and the measures that are implemented are based on the
requirements of positive regulations that are primarily considered in
the development of measures. In addition, measures are developed
based on the specic needs of customers at the level of individual
segments, and in exceptional cases, measures can be developed for
individual customers when such a need arises.
CIAK Group implements a consistent and continuous approach
to consumer relations with the aim of maintaining high standards
of service and product quality, consumer satisfaction and ethical
business. CIAK Group regularly monitors the effectiveness of
its activities through the evaluation of key indicators, consumer
feedback and internal analysis, thus ensuring long-term positive
effects on customer satisfaction. This approach allows for
maintaining exibility in responding to changes in the market and in
consumer behaviour and allows for the adaptation and improvement
of policies without the need to identify quantitative targets, but with
a clear focus on long-term sustainability and responsibility towards
consumers.
The Group's consumer relations goals are aligned with
the Group's business strategy as well as business plans. These
have not been quantied, but the Group will consider the need and
possibilities of adopting specic goals in this area in the coming
periods. The success of the measures used is assessed by analysing
the Group's business results, as well as collecting consumer
feedback. When considering the adoption of specic objectives or
monitoring the effectiveness of implemented measures, the Group
shall use the achievements of previous years or planned outputs,
where applicable.
6
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
88
Theexpertiseofthemanagementandsupervisory
bodiesofCIAKGroupd.d.isbasedonmanyyearsof
experienceincorporategovernanceandahighlevel
ofexperienceintheGroup'sbusinessactivities,which
aimstoapplybestpracticesinallaspectsofbusiness."
7
89
Business conduct
The management and supervisory bodies of CIAK Group have a
key responsibility for the design, implementation and supervision
of business conduct within the organization. Each body, within
its competences, is responsible for the drafting, publication and
implementation of internal acts that dene business conduct with
special emphasis on the documents Ordinance on Key Decisions
(PKO) and the Rules of Procedure that regulate internal rules of
business conduct.
It is planned to adopt a special Code of Business Ethics, which
will deal in detail with the issues of ethical behaviour, procedures
for detecting unethical behaviour and dening procedures for its
resolution.
Effective management and supervision are key to verifying the
application of responsible business conduct in accordance
with the guidelines set and encouraged by the Group. Managing
authorities are responsible for developing and aligning a
business strategy with the principles of sustainable and ethical
business, while supervisory authorities exercise control over the
implementation of these strategies and their compliance with
applicable legislation. This dualistic approach enables effective
monitoring and implementation of business policies, which
has a positive impact on the level of social and environmental
responsibility of the Group.
The expertise of the management and supervisory bodies
of CIAK Group d.d. is based on many years of experience in
corporate governance and a high level of experience in the
Group's business activities, which aims to apply best practices
in all aspects of business. A deep understanding of business
processes, legislative frameworks, and ethical guidelines enables
the development of policies and guidelines that not only meet
regulatory requirements but also set high ethical standards for
the entire organization. The relevant experience of the members
of the Supervisory Bodies enables effective supervision of
operations, insisting on adherence to and application of internally
dened business guidelines, as well as external regulations.
The expertise and experience of these bodies plays a key role in
identifying potential non-compliances and ensuring timely action,
minimizing or eliminating potential business risks and ensuring
the long-term trust of all Group stakeholders.
CIAK Group applies the Code of Corporate Governance of the ZSE
and HANFA. The Code of Corporate Governance contributes to
the development of corporate culture by laying the foundations
for responsible, transparent and ethical business within the
organization. The recommendations of the Code, such as the
clear division of responsibilities between the Supervisory Board
and the Management Board, promote a culture of professionalism,
trust and cooperation. Fostering transparency in reporting to
shareholders and other stakeholders creates an environment of
open communication and responsible decision-making.
By emphasizing the importance of risk management and
protecting shareholder rights, the Code guides organizations
to make careful, informed decisions, thereby strengthening a
culture of commitment to a high standard of business. The Code
also promotes ethical guidelines and social responsibility, which
contributes to the creation of an organizational culture that values
integrity, compliance with the law, and long-term sustainable
practices. The application of the Code shapes the corporate
culture with an emphasis on transparency, sustainability and
social responsibility.
CIAK Group has developed a Management System Policy
for Group members that apply ISO standards. CIAK Group's
management system policy directs business operations through
a clear denition of obligations in terms of quality, environmental
protection, occupational health and safety, and energy eciency.
Employees actively participate in achieving dened goals,
which increases their engagement and motivation. The policy
encourages cooperation with stakeholders and business
transparency, building trust and long-term relationships.
CIAK Grupa d.d. currently does not have a specic policy in place
regarding corruption and bribery issues, as there have been
no such cases in practice. However, the Labour Regulations
recognise behaviours that can be considered corruption or
bribery as serious breaches of work obligations.
For proven cases, the sanction is the termination of employment
in the company. The group has zero tolerance for the behaviours
described.
The Group protects whistleblowers through the implementation
of the Rulebook on the Internal Irregularity Reporting Procedure,
which provides mechanisms for reporting irregularities in the
organization and the protection of persons who report such
irregularities. Under this Ordinance, two condential persons,
male and female, have been appointed to ensure balance and
trust in the reporting process.
The Ordinance regulates in detail the procedure for reporting
irregularities, which includes clear steps for reporting, the
protection of whistleblowers from possible retaliation or
discrimination, and the procedure for resolving reports.
77
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
90
Condential persons are responsible for accepting reports,
processing them properly and ensuring the condentiality
of the data. Also, the Ordinance includes measures that
ensure that reports of irregularities are treated with
seriousness, that the anonymity of whistleblowers is not
jeopardized, and that an objective procedure is carried out
and a verdict is made based on correctly established facts.
The Group does not have specic processes to promptly,
independently and objectively investigate incidents in
business conduct, including cases of corruption and
bribery, as no such cases have been recorded in practice
so far. However, if such cases occur, they could be resolved
according to the guidelines of the existing Ordinance on
the Internal Irregularity Reporting Procedure.
The training of members of the management and
supervisory bodies is organized according to the
proposal of the human resources department or at the
proposal of the Member of the Management Board.
Members of management and supervisory bodies have
gained relevant knowledge in the eld of corporate
governance and business conduct through many years
of professional experience. In order to promote positive
practices of improving corporate culture and awareness
of the importance of business behaviour, training of the
Management Board and the highest management staff
on an annual basis is planned, which will carry out the
transfer of acquired knowledge to lower management
levels, ensure the transfer of principles to all employees of
the organization.
CIAK Group manages relationships with suppliers
with a special emphasis on sustainable development,
environmental protection and compliance with
applicable legislation. In accordance with the General
Conditions of Procurement, when selecting suppliers,
the Group requires that the purchased goods meet the
environmental and health protection regulations dened
for the European Union market. The supplier is also liable
for damages resulting from the delivery of environmentally
questionable goods or inappropriate packaging, whereby
the Group ensures high environmental standards in
business relationships.
CIAK Group also conducts a detailed compliance check
when establishing a business relationship with a new
supplier. Using the NAMSCAN platform, which enables the
verication of the identity of natural and legal persons,
checks of politically exposed persons (PEPs), sanctions
lists, and anti-money laundering (AML) measures are
carried out. This process ensures that all suppliers with
whom the Group does business meet high standards of
compliance and ethical business, minimizing risks and
strengthening trust in business relationships.
The relationship with suppliers is based on mutual trust,
with special emphasis on the importance of harmonizing
agreed deadlines, specications and quality level
requirements, identifying approaches to environmental
protection, health and safety at work, ensuring energy
eciency and road safety. The Group strives to maintain
long-term, partnership relationships with all suppliers who
share the same values and business standards.
CIAK Group's payment system regularly processes
payment proposals according to contracts with suppliers
and dened due dates for liabilities, in accordance with
dened internal procedures. The process is carried
out in strict compliance with the security measures of
operational payment transactions, which ensures the
timely settlement of due obligations to suppliers.
The average payment days for supplier liabilities in 2024 are
103 days. Deviations from the agreed payment currencies
can be up to 20 days, depending on the agreed commercial
and overall business relationships with suppliers.
In parallel with the agreed payment currencies, they
can vary, and range up to 180 days for suppliers from the
largest business segments. The most signicant supplier
contracts, due to long-term partnership relationships,
have an agreed payment deferral for a greater number
of days than the standard conditions dened by general
procurement processes.
As part of the internal act "General Procurement
Conditions", the Group provided general guidelines for the
Group's activities in order to prevent late payments. The
Group has no ongoing litigation related to late payment to
suppliers.
7.1. VENDOR RELATIONSHIP MANAGEMENT
7
91
In accordance with Article 8. of the Regulation on the establishment
of a framework to facilitate sustainable investments (EU)
2020/852 and supplementary delegated acts (EU Taxonomy),
the Group is required to disclose the proportion of revenues
(Turnover), CapEx and OpEx in the reporting period that is eligible
for the EU Taxonomy and aligned with the Taxonomy with respect
to the environmental objectives of climate change mitigation and
adaptation, sustainable use and protection of water and marine
resources, transition to a circular economy, pollution prevention
and control, and the protection and restoration of biodiversity
and ecosystems. The Taxonomy Regulation is a key component
of the European Commission's action plan to reorient capital
ows towards a sustainable economy. It represents an important
step towards achieving carbon neutrality by 2050 in line with the
EU's climate goals, as the Taxonomy is a classication system for
environmentally sustainable economic activities.
In accordance with the prescribed regulations, the Group has
identied taxonomy-eligible activities as part of its business
activities: battery production (classied under NACE code C27.2
in accordance with the statistical classication of economic
activities established by Regulation (EC) No. Regulation (EC) No
1893/2006 and the collection and transport of hazardous and
non-hazardous waste in fractions separated at source (classied
under NACE code E38.11 according to the statistical classication
of economic activities established by Regulation (EC) No
1893/2006).
In the following, the Group publishes the key performance
indicators prescribed by the aforementioned regulation.
According to Article 3. Regulation (EU) 2020/852, which denes
that economic activities qualify as taxonomically aligned if they
contribute substantially to one or more of the environmental
objectives: climate change mitigation, climate change adaptation,
sustainable use and protection of water and marine resources,
transition to a circular economy, pollution prevention and control,
and protection and restoration of biodiversity and ecosystems.
Furthermore, economic activities must not signicantly harm any
of the other environmental objectives (DNSH = do no signicant
harm) and must be carried out in accordance with minimum
safeguards, in terms of human and consumer rights, anti-
corruption and bribery, taxation and fair competition.
The identied eligible activities contribute to the environmental
objective of climate change mitigation.
The Group's identied eligible activities are not compliant. In the
folowwing periods, the activities necessary to conrm taxonomic
compliance for taxonomically eligible activities will be carried out.
7.2. KEY INDICATORS OF ENVIRONMENTALLY SUSTAINABLE
ECONOMIC ACTIVITIES (EU TAXONOMY)
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
92
The table below shows the share of revenues of taxonomy-
eligible and taxonomically ineligible economic activities in the
consolidated revenues of CIAK Group.
The proportion of revenues is calculated as the ratio of net
revenues generated from products or services, including
intangible assets, generated by the performance of taxonomy-
eligible activities and the Group's total consolidated sales
revenues.
Within the eligible activity of Battery Production, the activity of
battery recycling is listed. Revenues of battery recycling activities
in CIAK Group companies account for 5% of CIAK Group's
consolidated revenues. The majority of the presented revenues
are generated at the prot Centres of the company C.I.A.K. d.o.o.,
in the segment of recycling activities.
The environmentally sustainable activity of collection and
transport of hazardous and non-hazardous waste in fractions
separated at the source accounts for 3.4% of the consolidated
revenues of the CIAK Group. The observed revenues include
revenues generated by the Group companies that perform waste
management activities, and the most signicant part refers to
the revenue generated on the Croatian market.
The total revenues of environmentally friendly activities within
the CIAK Group account for 8.5% of the consolidated revenues of
the CIAK Group.
The reported operating revenues are linked to note 6 of the nancial
statements. The nancial statement does not contain data on achievements
at the level of individual activities within the dened reporting segment of
business.
D – Yes, a taxonomy-friendly and taxonomically compliant
activity with a relevant environmental objective
N – No, taxonomy-acceptable but taxonomically non-
compliant activity with the relevant environmental objective
N/EL – not an eligible, taxonomically ineligible activity for the
relevant environmental objective
Share of revenues from products or services of taxonomy-eligible activities
Financial year 2024 2024 Substantial contribution criteria DNSH criteria
Economic Activities (1)
Code (2)
Turnover (3)
Proportion of Turnover, year 2024 (4)
Climate Change Mitigation (5)
Climate Change Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity (10)
Climate Change Mitigation (11)
Climate Change Adaptation (12)
Water (13)
Pollution (14)
Circular Economy (15)
Biodiversity (16)
Minimum Safeguards (17)
Proportion of Taxonomy-aligned (A.1.) or -eligible
(A.2.) turnover, year 2023 (18)
Category enabling activity (19)
Category transitional activity (20)
Text
000 EUR
%
Y; N; N/EL()()
Y; N; N/EL()()
Y; N; N/EL()()
Y; N; N/EL()()
Y; N; N/EL()()
Y; N; N/EL()()
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A.TAXONOMY-ELIGIBLE ACTIVITIES
A.1Environmentally sustainable activities (Taxonomy-aligned)
Turnover of environmentally sustainable
activities (Taxonomy-aligned) (A.1)
0 0% 0% 0% 0% 0% 0% 0% N N N N N N N 0% - -
Of which enabling 0 0%
Of which transitional 0 0%
A.2Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Battery production 27.20 17.629 5,0% 5,3%
Collection and transportation of
hazardous and non-hazardous waste in
fractions that are separated at source
38.11 12.037 3,4% 3,8%
Turnover of Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
29.665 8,5% 9,1%
A.Turnover of Taxonomy-eligible
activities(A.1+A.2)
29.665 8,5% 9,1%
B.TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible
activities
320.889 91,5%
TOTAL 350.555 100%
7
93
The observed operating expenditure is contained in notes 8 and 9 of the
nancial statement. The presented costs, which are observed as expenses
in the context of the calculation of performance indicators on the basis of
the regulation, are prepared at the level of the account and the place of
expense, and consequently it is not possible to identify the exact amounts in
the Group's nancial statement.
D – Yes, a taxonomy-friendly and taxonomically compliant
activity with a relevant environmental objective
N – No, taxonomy-acceptable but taxonomically non-
compliant activity with the relevant environmental objective
N/EL – not an eligible, taxonomically ineligible activity for the
relevant environmental objective
Financial year 2024 2024 Substantial contribution criteria DNSH criteria
Economic Activities (1)
Code (2)
OpEx (3)
Proportion of OpEx, year 2024 (4)
Climate Change Mitigation (5)
Climate Change Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity (10)
Climate Change Mitigation (11)
Climate Change Adaptation (12)
Water (13)
Pollution (14)
Circular Economy (15)
Biodiversity (16)
Minimum Safeguards (17)
Proportion of Taxonomy-aligned (A.1.) or -eligible
(A.2.) OpEx, year N-1 (18)
Category enabling activity (19)
Category transitional activity (20)
Text
000 EUR
%
Y; N; N/EL()()
Y; N; N/EL()()
Y; N; N/EL()()
Y; N; N/EL()()
Y; N; N/EL()()
Y; N; N/EL()()
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A.TAXONOMY-ELIGIBLE ACTIVITIES
A.1Environmentally sustainable activities (Taxonomy-aligned)
OpEx of environmentally sustainable
activities (Taxonomy-aligned) (A.1)
0 0% 0% 0% 0% 0% 0% 0% N N N N N N N 0% - -
Of which enabling 0 0%
Of which transitional 0 0%
A.2Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Battery production 27.20 1.679 11,2% 14,0%
Collection and transportation of
hazardous and non-hazardous waste in
fractions that are separated at source
38.11 1.426 9,5% 9,7%
OpEx of Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2.)
3.106 20,6% 23,7%
A. OpEx of Taxonomy eligible
activities(A.1+A.2)
3.106 20,6% 23,7%
B.TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible
activities
11.956 79,4%
TOTAL 15.062 100%
The table below shows the share of operating expenses of
taxonomy-eligible and taxonomy-ineligible economic activities in
the consolidated operating expenses of the CIAK Group.
The observed operating expenditure in accordance with the
regulation includes direct non-capitalised costs related to research
and development, building renovation measures, short-term rental,
maintenance and repair, and any other direct expenditure for the
day-to-day servicing of property, plant and equipment carried
out by the company or by a third party entrusted with these tasks,
which are necessary for the proper functioning of those assets.
Within the eligible activity of battery production, the activity of
battery recycling is listed. Operating expenses of the recycling
activity account for 11.2% of the consolidated operating expenses
of the CIAK Group. The taxonomy-eligible activity of collection
and transport of hazardous and non-hazardous waste in fractions
separated at source accounts for 9.5% of the consolidated
operating expenses of the CIAK Group. Within the observed
operating expenditures, the most signicant part refers to the
expenditures of the company C.I.A.K., in the recycling activities,
i.e. in the places of environmental costs if we look at the waste
management activity.
Total operating expenses of environmentally sustainable activities
within the CIAK Group account for 20.6% of the consolidated
operating expenses of the CIAK Group.
Share of operational expenditure for products or services of taxonomy-eligible activities
7
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
94
7
This performance indicator shows the share of capital expenditures
of taxonomy-eligible and taxonomy-ineligible economic activities
in the consolidated capital expenditures of the CIAK Group. Equity
investments are viewed as increases in tangible and intangible
assets in the nancial year, before their depreciation and
remeasurement, including increases resulting from revaluation and
impairment, for the relevant nancial year and excluding changes
in fair value. Total capital investments also refer to investments in
assets with the right to use in the observed period. Leases that do
not lead to the recognition of right-of-use assets are not accounted
for as capital expenditure. Investments also include changes in
assets resulting from business combinations.
Capital expenditures of the recycling activity account for 4,3% of
the consolidated capital expenditures of the CIAK Group.
The environmentally sustainable activity of collection and transport
of hazardous and non-hazardous waste in fractions separated at
source accounts for 4,3% of the consolidated capital expenditures
of the CIAK Group.
Total capital expenditures of environmentally sustainable activities
within the CIAK Group account for 8,6% of the consolidated capital
expenditures of the CIAK Group.
The observed total capital expenditures of the Group are also contained in
notes 14, 15 and 16 of the nancial statements. The presentation at the level
of dened activities, i.e. taxonomically eligible investments, was calculated
based on the Group's operational reports.
D – Yes, a taxonomy-friendly and taxonomically compliant
activity with a relevant environmental objective
N – No, taxonomy-acceptable but taxonomically non-
compliant activity with the relevant environmental objective
N/EL – not an eligible, taxonomically ineligible activity for the
relevant environmental objective
Share of CapEx for products or services related to taxonomy-eligible activities
Financial year 2024 2024 Substantial contribution criteria DNSH criteria
Economic Activities (1)
Code (2)
CapEx (3)
Proportion of CapEx, 2024 (4)
Climate Change Mitigation (5)
Climate Change Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity (10)
Climate Change Mitigation (11)
Climate Change Adaptation (12)
Water (13)
Pollution (14)
Circular Economy (15)
Biodiversity (16)
Minimum Safeguards (17)
Proportion of Taxonomy-aligned (A.1.) or eligible
(A.2.) CapEx, 2023 (18)
Category enabling activity (19)
Category transitional activity (20)
Text
000 EUR
%
Y; N; N/EL()()
Y; N; N/EL()()
Y; N; N/EL()()
Y; N; N/EL()()
Y; N; N/EL()()
Y; N; N/EL()()
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
A.TAXONOMY-ELIGIBLE ACTIVITIES
A.1Environmentally sustainable activities (Taxonomy-aligned)
CapEx of environmentally sustainable
activities (Taxonomy-aligned) (A.1.)
0 0% 0% 0% 0% 0% 0% 0% N N N N N N N 0% - -
Of which enabling 0 0%
Of which transitional 0 0%
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Battery production 27.20 1.295 4,3% 4,3%
Collection and transportation of
hazardous and non-hazardous waste in
fractions that are separated at source
38.11 1.296 4,3% 9,6%
CapEx of Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
2.591 8,6% 13,9%
A. CapEx of Taxonomy-eligible activities
(A.1+A.2)
2.591 8,6% 13,9%
B.TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible
activities
27.389 91,4%
TOTAL 29.980 100%
95
ISO 14001:2015
ISO 14001:2015 is an international standard that helps organizations establish and maintain an environmental
management system. The goal is to reduce the negative impact of business activities on the environment,
through systematic monitoring, reduction of waste, emissions and resource consumption. The standard
also places emphasis on compliance with legislation and continuous improvement of the organization's
environmental performance. The implementation of ISO 14001 helps organizations reduce costs, improve
their image and attract investments, while contributing to sustainability and environmental protection.
ISO 9001:2015
The ISO 9001 quality management system focuses on the continuous improvement of the organization in all
processes from design to marketing, production/service, after-sales, all with the aim of meeting the needs
and expectations of all interested parties in the organization.
The ISO 9001 quality management system has become imperative in today's industry, and the need for it
arises for several reasons. It is this system with its widespread application that has become a key factor in
solving the problems faced by organizations of all types and sizes. In addition to providing a guarantee that
all processes or products or services are realized according to the requirements for the quality management
system dened in the ISO 9001 standard, regardless of the type of product or service, the quality management
system also brings far more signicant benets. These advantages are mostly outlined in increasing
employee satisfaction and reducing employee turnover, reducing the number of non-conformities, saving
time and thus reducing costs, full compliance with legal requirements and obligations, etc.
ISO 50001:2018
ISO 50001 is a global standard for energy eciency management that often makes it possible to achieve
signicant savings with simple organizational changes, without large investments. It enables the
establishment of a practice of conscientious use of energy, which, in addition to reducing costs, also
increases productivity.
ISO 45001:2018
The ISO 45001 standard ensures a safe working environment, increases the satisfaction and eciency
of all employees, identies and controls health and safety risks, reduces the potential risk of accidents,
reduces the number of sick days, fully complies with legal regulations and fully improves the business
and image of the company.
ISO 39001:2012
ISO 39001:2012 certication species the requirements for a road safety management system (RTS) to
enable an organization that interacts with the road trac system to reduce the fatalities and serious
injuries associated with trac accidents that it may affect. The requirements in ISO 39001:2012
include the development and implementation of an appropriate RTS policy, the development of RTS
objectives and action plans, which consider the legal and other requirements to which the organization
is subscribed, and information about the elements and criteria related to the RTS that the organization
identies as controllable and inuential.
CIAK Group has various quality certicates:
8
8.1. CERTIFICATES
Certicates and associations
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
96
AD Adria is a proud member of AD International, a group that brings together over 600 wholesale distributors from 48 countries in
Europe, North America and Central Asia, with the aim of exchanging information and improving business methods with superior
logistics eciency. AD International provides support services to its partners by providing them with adequate and timely information,
as well as technical support in the form of training, advice and assistance.
ADI has established its own exclusive program to improve and promote technical training and support: Eurespan>Emperor. Eurosspan>Car
includes high-quality technical training for professional mechanics and is supported by leading auto parts manufacturers. CIAK Auto
Academy is the implementation of the successful Eurospan>Car concept in Croatia, with the aim of raising the level of knowledge of the
complete independent aftermarket.
AD International
AD International u brojkama
8.2. ASSOCIATIONS
3.000
outlets
10.000
service stations
in the ADI network
23
partners
600
wholesale
distributers
48
countries
8
SCCP:2011
SCCP:2011 is a certication for manufacturers, contractors and service providers. This certicate
certies that the organization and employees apply an occupational safety, health and environmental
management system. The certicate allows you to work in extremely dangerous conditions.
HRN EN ISO/IEC 17025:2017
The ISO/IEC 17025:2007 certicate covers testing carried out using standard methods, non-standard
methods and laboratory-developed methods.
The certicate is applicable to all organizations that carry out tests and/or calibrations. This includes,
for example, rst-, second- and third-party laboratories, and laboratories where testing and/or
calibration forms part of product inspection and certication.
ISO/IEC 17025:2007 is applicable to all laboratories regardless of the number of staff or the scope
of testing and/or calibration activities. ISO/IEC 17025:2007 uses laboratories in the development
of their quality management system, administrative and technical operations. It can also be used by
laboratory users, regulatory bodies and accreditation bodies to certify or recognise the competence
of laboratories.
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
97
By especially listening to the needs of customers and mechanics over
the many years of our operation, we have ensured an extremely wide
range of products with fast delivery of service equipment and tools.
Thus, a wide selection includes vulcanizing equipment, two-column
car cranes, scissor car cranes, four-column car cranes, workshop
furniture, diagnostic testers, compressors, pneumatic guns,
hydraulic presses, special sets of tools for the engine phase, precise
measuring instruments, welding equipment, various cordless and
electric tools and many others.
By continuously expanding the range of tools and service equipment,
CIAK Group has enabled car mechanics in Croatia and the region
to have daily availability of premium brands of tools from world-
renowned manufacturers. Through a network of over 150 branches
and 320 delivery vehicles, CIAK Group has 150,000 premium
items available within just 24 hours in Croatia and the region, thus
conrming its status as a market leader. Some of the brands that
are in our offer: Bosch, DeWalt, Stanley, Black & Decker, Omega Air,
Draper Tools, Mimont, Tools4you, Ravaglioli, Hazet, Sw-Stahl, Fervi,
Kassmayer and many others.
In order to provide our partners with the most relevant possible
tools for work, and our customers with the highest quality service
and products, we continuously invest in the development of the
assortment, as well as professional technical support and quality
education. In addition to the already sizable number of over
1,500,000 items that are available through our network of branches
and delivery, it is also worth mentioning the commendable work
of the CIAK Auto Academy. It is through this program that we have
been providing our mechanical partners with signicant knowledge
of diagnostic devices and tools through professional seminars and
individual education for several years, so that they can offer the
users of our services the highest quality knowledge in step with new
technologies.
We have gathered a team of dedicated sales and technical experts
who, with their dedication, strive to exceed the expectations of every
customer daily. We have created a positive working environment that
will enable sales colleagues to succeed in the given endeavour and
thus achieve personal satisfaction and professional growth.
Our ultimate goal has always been, and continues to be, to satisfy
our customers with a large selection, unsurpassed quality and
affordability of the sales assortment in a professional and affordable
way with continuous growth and development of the company.
9
9.1. TOOLS & SERVICE EQUIPMENT
New products
SUSTAINABILITY REPORT 2024. - CIAK GRUPA D.D.
98
CIAK Auto Fleet Management is a national network of service Centres organized by CIAK Auto. CIAK Auto Fleet Management gathers
over 90 independent service Centres, and they were selected based on their quality work and in accordance with the criteria of the CIAK
Auto standard.
CIAK Auto Fleet Management and service partners provide their customers with maintenance of all brands of vehicles, passenger
cars and light commercial vehicles, as well as the availability of high-quality spare parts for the rst installation that have the IATF
16949 certicate. In addition to the existing network in the Republic of Croatia, the foundation for the growth of CA Fleet Management
solutions in the Serbian market has been laid.
All CIAK service partners can provide services according to the most modern standards and requirements of today's cars:
• Trained and trained service teams.
• With the latest equipment and tools,
• warranty on installed spare parts for a period of 2 years,
• A high-quality and fast service,
• The possibility of online ordering,
• ecological waste disposal,
• records of works on the vehicle.
Vehicle maintenance and repair is a very demanding job, but also a great responsibility. In order to ensure quality, safety and nancial
savings, all CIAK Auto service partners are equipped and trained for a wide range of car repairs and services.
CIAK Auto Fleet Management offers:
• the largest network of service Centres throughout Croatia,
• fully equipped workshops,
• qualied personnel,
• installation of original spare parts and original installation parts that have IATF 16949 certication,
• standardized services according to the licensed AUTODATA program,
• Towing service and roadside assistance from 0-24 hours.
9.2. FLEET DEPARTMENT
9
AUTOMOTIVE MECHANICS: includes regular service maintenance
according to the service intervals prescribed by the vehicle
manufacturer, all other repairs of the engine group, transmission,
suspension, braking system, exhaust system.
AUTOELECTRICS: includes all types of repairs and replacements
of electrical components on the vehicle, including batteries and
lighting equipment.
DIAGNOSTICS: diagnosing all types of faults and resetting service
intervals with state-of-the-art diagnostic devices.
AUTOKLIMA: control and servicing of the complete air
conditioning system on the vehicle with the most modern devices,
replenishment of the system with gas, cleaning and disinfection.
VULCANIZATION: sale of tires and rims, assembly and balance,
wheel alignment.
TOWING SERVICE: roadside assistance 0-24 h for all contractual
users of AutoPlus service, warranty on used vehicles for all users
of AutoPlus service within the warranty period for installed parts
and service.
MAP OF THE HEADQUARTERS OF THE CIAK CAR SERVICE
NETWORK WITHIN THE REPUBLIC OF CROATIA
99
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
1
99
1.1.
SHAREHOLDERS AND THE INVESTMENT PUBLIC
CORPORATE GOVERNANCE REPORT
The Management Board of CIAK Group d.d. (hereinafter: the Company) submits a Report on the application of the Code of Corporate
Governance pursuant to Article 25 of the Corporate Governance Act. of the Accounting Act. Because the company's shares are
listed on a regulated market, CIAK Group d.d. applies the Code of Corporate Governance prepared jointly by the Croatian Financial
Services Supervisory Agency and the Zagreb Stock Exchange and has been in force since January 1, 2020 (hereinafter: the Code). The
Code was published on the websites of the Zagreb Stock Exchange (www.zse.hr
) and the Croatian Financial Services Supervisory
Agency (www. hanfa.hr). Apart from the aforementioned code, the Company does not apply any other corporate governance codes due
to the relatively short period of listing on the stock exchange.
By applying the recommendations of the Code in its business, the Company has achieved all the basic principles of corporate governance
that the Code aims to achieve:
• transparency of operations,
• clearly elaborated procedures for the work of the supervisory board, management and other management structures,
• avoidance of conicts of interest,
• effective internal control,
• an effective accountability system.
In relation to each of the corporate governance stakeholders, this means the following:
Shares of CIAK Group d.d., under the ticker symbol CIAK-R-A, are traded on the Regular Market of the Zagreb Stock Exchange as well as
outside the organized market.
All shareholders have the same position regardless of the number of shares, just as institutional and individual investors are treated
equally.
All shareholders have the right to be informed, and the notication is made through the Company's website www.ciak.hr the "Investors"
section, where quarterly, semi-annual and annual reports and other documents and acts of the Issuing Company are available.
Furthermore, the prescribed information is published in Croatian and English through HINA and through the ZSE and HANFA (SRPI)
services.
At least once a year, the general meeting of the company is held, in which all shareholders and their proxies have the right to participate.
The agenda of the General Meeting shall be published in the manner and within the deadlines set by the Companies Act, and decisions
shall be made by the prescribed majority of votes with the application of the principle of one share – one vote. An obligatory item
on the agenda is the report of the Supervisory Board and the annual report on the state of the company, which reports are given to
shareholders to discuss and ask questions before making a nal decision. The rules of convening, holding and conducting during the
General Assembly, as well as the manner of operation of the General Assembly and its authorizations, shareholder rights and realization
of the same, are determined by a special internal act (Rules of Procedure of the General Assembly) published on the Company's website.
The rules related to registering for participation in the assembly, the participation of assistants, the new date of the assembly in the
absence of a quorum are contained in the invitation to the assembly itself, which is published through the announcement of the court
register, HINA, ZSE and HANFA (SRPI). After the assembly, decisions are published through the above forms of publication, and the
minutes are submitted to the competent court register.
100
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
1.2. ADMINISTRATIVE AND SUPERVISORY BODIES AND THEIR COMMITTEES
1.3. INTERNAL AND EXTERNAL AUDIT OF THE COMPANY
1.4. INCLUSIVE
The internal acts of the Company (Memorandum of Association, Statute, Rules of Procedure of the Management Board, Rules of
Procedure of the Supervisory Board, Rules of Procedure on the Work of the Audit Committee) determine the criteria for the appointment
and election of the Management Board, the Supervisory and Audit Committee (composition, education, tasks and responsibilities,
manner of work, holding of sessions and manner of decision-making), relationship with other bodies and related persons. When
appointing members of the Management Board (5 members) and the Supervisory Board (7 members, of which 1 member is an employee
representative), the existence of a conict of interest and possible membership of members in the management and supervisory boards
of other companies shall be taken into account. When electing members, the Society invests special efforts in promoting the diversity
of represented professions and achieving a balanced representation of both sexes (e.g. 29% of women in the Supervisory Board) as
well as the diversity of generational representation with an emphasis on knowledge of new technologies. The Company monitors and
evaluates the work of the members of the Management Board and the Supervisory Board and rewards or penalizes them accordingly
to the results achieved, all in accordance with the acts adopted at the General Assembly "Remuneration Policy of Management Board
Members" and the Decision on the amount of remuneration for the work of the Supervisory Board members.
The Management Board and the Supervisory Board work at sessions, and the condition for making valid decisions is the existence of
a quorum and an absolute majority of votes. During the business year 2024, the Management Board and the Supervisory Board held 12
sessions each.
The Management Board and the Supervisory Board are particularly attentive in identifying nancial, operational, organizational and
external risks in a timely manner and strive to ensure effective internal and external control systems.
The scope of work of the special Internal Audit Department is to research, examine and evaluate the effectiveness of the internal
control system, protect the Company's assets, report on the ndings and propose solutions to the Management Board. Reports are
submitted to the Audit Committee and the Management Board of the Company.
In accordance with the Audit Act, a special committee has been formed within the Supervisory Board - the Audit Committee, which
has the task of supervising the correctness and integrity of the company's nancial statements and accounting policies, ensuring the
independence and suciency of the internal audit function, and supervising the implementation of measures determined as a result
of external and internal audit and own supervision. The members of the Audit Committee are appointed from among the members of
the Supervisory Board, are independent of the Company and are experts in the eld of accounting and auditing. The Audit Committee
is independent in its work, works at sessions, and during 2024 it held 9 sessions.
An independent audit rm has been selected as the external auditor by a decision of the General Assembly. An independent external
auditor is in charge of auditing the statutory nancial statements and verifying the Sustainability Report.
From all the above, it is clear that the Company has a transparent attitude towards investors. Material facts and inside information are
regularly published on the ocial website of the Company. A calendar of important events and a shareholder structure are published
on the ocial website. The Company's website is published in Croatian and English and contains a contact through which relevant
information can be requested from the company's management or an authorized person in charge of investor relations. Special
conferences with investors are held periodically. The Management Board is responsible for quality and transparent relations in the
company.
The company is also making every effort to comply with the new EU guidelines in terms of achieving sustainable corporate governance
through the alignment of business activities with the achievement of the EU's overall environmental objectives set out in the "European
Green Deal".
When making decisions on the company's strategy and business plan, the Management Board and the Supervisory Board consider the
impact of the same on stakeholders, the environment and the community, as well as on the company's reputation, which they report on
in more detail as part of the Sustainability Report.
1
101
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
ANNUAL FINANCIAL REPORTS
102
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries
69
| (in thousands of EUR) | Note | 2024 | 2023 |
| Operating revenues | 6 | ||
| Bargain purchase gain | 31 | ||
| Other income | 7 | ||
| Material expenses | 8 | ( | ( |
| Employee expenses | 10 | ( | ( |
| Depreciation and amortisation | 14,15,16 | ( | ( |
| Impairment of brand | 14 | ( | |
| Other operating expenses | 9 | ( | ( |
| Operating profit | |||
| Finance income | 11 | ||
| Finance costs | 12 | ( | ( |
| Net finance expense | ( | ( | |
| Profit before tax | |||
| Income tax | 13 | ( | ( |
| - | |||
| Net profit for the year | |||
| Other comprehensive income | |||
| Items that may be reclassified subsequently to profit or loss | |||
| Foreign operations - foreign translation differences | ( | ( | |
| Total comprehensive income | |||
| Profit attributable to: | |||
| Equity holders of the parent | |||
| Non-controlling interests | ( | ( | |
| Total comprehensive income attributable to: | |||
| Equity holders of the parent | |||
| Non-controlling interests | ( | ( | |
| Earnings per share (in EUR): | |||
| Basic | |||
| Diluted |
The accompanying accounting policies and notes form an integral part of these consolidated financial
statements.
103
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries
70
| (in thousands of EUR) | Note | 31.12.2024 | 31.12.2023 |
| ASSETS | |||
| Non-current assets | |||
| Intangible assets and goodwill | 14 | ||
| Property, plant and equipment | 15 | ||
| Right of use assets | 16 | ||
| Equity-accounted investees | 17 | ||
| Trade and other receivables | 20 | ||
| Deferred tax assets | 13 | ||
| Financial assets | 18 | ||
| Total non-current assets | |||
| Current assets | |||
| Inventories | 19 | ||
| Trade and other receivables | 20 | ||
| Income tax receivable | |||
| Financial assets | 18 | ||
| Cash and cash equivalents | 21 | ||
| Non-current assets held for sale | 22 | ||
| Total current assets | |||
| Total assets | |||
| EQUITY AND LIABILITIES | |||
| Shareholders' equity | |||
| Share capital | 23 | ||
| Reserves | 24 | ||
| Legal reserves | |||
| Treasury shares | 25 | ( | ( |
| Reserves for treasury shares | 25 | ||
| Retained earnings | |||
| Attributable to equity holders of the parent | |||
| Non-controlling interests | 26 | ( | ( |
| Total shareholders' equity | |||
| Non-current liabilities | |||
| Borrowings | 27 | ||
| Provisions | 28 | ||
| Trade and other payables | 29 | ||
| Deferred tax liability | 13 | ||
| Total non-current liabilities | |||
| Current liabilities | |||
| Trade and other payables | 29 | ||
| Income tax payable | |||
| Borrowings | 27 | ||
| Total current liabilities | |||
| Total liabilities | |||
| Total equity and liabilities |
The accompanying accounting policies and notes form an integral part of these consolidated financial
statements.
104
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries
71
| (in EUR thousands) | Share capital | Capital reserves | Legal reserves | Treasuryshares | Reserves for treasury shares | Retained earnings | Total | Non-controlling interests | Total |
| As at 1 January 2023 | ( | ( | |||||||
| Comprehensive income | |||||||||
| Profit for the year | ( | ||||||||
| Foreign exchange differences | ( | ( | ( | ||||||
| Other comprehensive income | ( | ( | ( | ||||||
| Total comprehensive income | ( | ||||||||
| Transfer to reserves for treasury shares | ( | ||||||||
| Transfer to reserves | ( | ||||||||
| Allotment of treasury shares | ( | ||||||||
| Purchase of treasury shares | ( | ( | ( | ||||||
| Dividend paid | ( | ( | ( | ||||||
| Total transactions with owners recognised directly in equity | ( | ( | ( | ||||||
| As at 31 December 2023 | ( | ( | |||||||
| As at 1 January 2024 | ( | ( | |||||||
| Comprehensive income | |||||||||
| Profit for the year | ( | ||||||||
| Foreign exchange differences | ( | ( | ( | ||||||
| Other comprehensive income | ( | ( | ( | ||||||
| Total comprehensive income | ( | ||||||||
| Purchase of minority share | ( | ( | ( | ||||||
| Transfer to reserves | ( | ||||||||
| Allotment of treasury shares | ( | ( | |||||||
| Purchase of treasury shares | ( | ( | ( | ||||||
| Dividend paid | ( | ( | ( | ||||||
| Total transactions with owners recognised directly in equity | ( | ( | ( | ( | ( | ||||
| As at 31 December 2024 | ( | ( |
The accompanying accounting policies and notes form an integral part of these consolidated financial
statements.
105
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries
72
| (in thousands of EUR) | Note | 2024. | 2023. |
| Profit for the year | |||
| Income tax | 13 | ||
| Depreciation and amortization | 14, 15, 16 | ||
| Impairment of brand | |||
| Bargain purchase gain | ( | ( | |
| (Gain)/loss on disposal of property, plant, equipment and intangibl | es | ( | ( |
| Impairment of trade and other receivables | |||
| Impairment of inventories | |||
| Write off of liabilities | ( | ( | |
| Net change in provisions | ( | ||
| Unrealised exchange rate differences | ( | ( | |
| Interest income | 11 | ( | ( |
| Interest expense | 12 | ||
| Other non-cash adjustments | ( | ||
| Changes in working capital: | |||
| Trade and other receivables | ( | ( | |
| Inventories | ( | ( | |
| Trade and other payables | |||
| Cash generated from operations | |||
| Interest paid | ( | ( | |
| Income taxes paid | ( | ( | |
| Net cash from operating activities | |||
| Cash flows from investing activities | |||
| Proceeds from sale of property, plant, equipment | |||
| Net change in deposits | ( | ||
| Purchase of property, plant, equipment | ( | ( | |
| Acquisition of subsidiaries net of cash acquired | ( | ||
| Net cash used in investing activities | ( | ( | |
| Cash flows from financing activities | |||
| Dividends paid | ( | ( | |
| Loans received | |||
| Loans repaid | ( | ( | |
| Lease liabilities paid | ( | ( | |
| Purchase of treasury shares | ( | ( | |
| Net cash used in financing activities | ( | ||
| Net increase of cash and cash equivalents | ( | ||
| Cash and cash equivalents at beginning of year | |||
| Cash and cash equivalents at the end of year | 21 |
The accompanying accounting policies and notes form an integral part of these consolidated financial
statements.
106
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries
73
NOTE 1 – GENERAL INFORMATION
History and incorporation
referred to as “the Group”) comprise wholesale and retail of automotive parts as well as waste
management.
The Group is headquartered in Zagreb, Croatia , Savska Opatovina 36 .
By the decision on legal transformation of 27 December 2019, the Company was transformed from a
limited liability company into a joint stock company which was registered at the Commercial Court in
Zagreb on 2 January 2020 and the Company changed its name to CIAK Grupa d.d.
The shareholder structure is shown in note 23.
Corporate governance and management
General Assembly
The General Assembly of the Company consists of the shareholders of CIAK Grupa d.d.
Supervisory Board
The members of the Supervisory Board during the reporting periods until the date of these financial
statements were as follows:
Management Board
The Management Board members of the Company are as follows:
President of the Management Board
Ivan Leko
Member of the Management Board
Dominik Leko
Member of the Management Board
Dalibor Bagarić
Member of the Management Board
Ivica Greguraš
Member of the Management Board
Ivan Miloš
During 2024, the Company’s auditors of and their related entities provided services to the Company and
its subsidiaries related to the statutory audit of the consolidated and separate financial statements and
other assurance services with respect to sustainability reporting and reporting on remuneration of
Management and Supervisory Board members totalling EUR 294 thousand (2023: EUR 178 thousand),
as well as permissible non-audit services related to business consulting in the amount of 41 thousand
President
Stjepan Ljatifi
Deputy President
Vjekoslav Mesaroš
Member
Slavica Zrinski
Member
Štefica Jambrek
Member
Damir Kos
Member
Zvonko Merkaš
Member
Marko Varga
107
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 74
NOTE 2 – BASIS OF PREPARATION
(i) Statement of compliance
The consolidated financial statements have been prepared in accordance with International Financial
Reporting Standards as adopted by the European Union (“EU IFRS”). The separate financial statements
the Company is required to prepare in accordance with EU IFRS are published separately and issued
(ii) Basis of measurement
The consolidated financial statements of the Group have been prepared on the historical cost basis,
except where stated otherwise (see note 5).
(iii) Functional and presentation currency
The items included in the Group's financial statements are expressed in the currency of the primary
economic environment in which the Group operates (functional currency) and translated into EUR which
represents the Group’s presentation currency. The predominant functional currency related to the
Group’s operations is also EUR.
108
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 75
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following accounting policies have been consistently applied to all the years presented in these
consolidated financial statements.
3.1 Basis of consolidation
(i) Group structure and scope of consolidation
As at the reporting dates, the Company held the following ownership interests in controlled entities
:
2024.
2023.
Company
Country
*DOI%
*EOI%
*DOI%
*EOI%
C.I.A.K. auto d.o.o.
HR
100%
100%
100%
100%
C.I.A.K. Auto d.o.o.
BiH
100%
100%
AD Adria d.o.o.
HR
100%
100%
C.I.A.K. Auto Srbija d.o.o.
RS
100%
100%
Lukena Auto d.o.o.
RS
100%
100%
Auto Milovanović d.o.o.
BiH
100%
100%
Bagi d.o.o.
BiH
100%
100%
Lukena Auto d.o.o.
MKD
100%
100%
Next Auto
CG
100%
100%
Mika komerc d.o.o.
RS
100%
100%
Potokar d.o.o.
SLO
100%
100%
C.I.A.K. Auto Slovenija d.o.o.
(ex Stahlgruber trgovina d.o.o.)
***** SLO
100%
0%
Sim Impex d.o.o.
*****
BiH
100%
0%
Ars Parts d.o.o. ***** RS
100%
0%
CIAK Auto SH.P.K
****
KOS
100%
0%
C.I.A.K. d.o.o.
HR 100% 100% 100% 100%
C.I.A.K. d.o.o.
RS
100%
100%
Top start Srbija d.o.o.
RS
100%
100%
EKO PARTNER PLUS d.o.o.
RS
100%
100%
C.I.A.K. d.o.o.
SLO
100%
100%
C.I.A.K. d.o.o. Sarajevo
BiH
100%
100%
Jumetal d.o.o.
*****
BiH
100%
0%
Grioss RS d.o.o.
BiH
100%
100%
Bendj trade d.o.o.
BiH
62%
62%
Top start d.o.o.
HR
100%
100%
Autodijelovi d.o.o.
HR
50%
50%
Adriatik ulja d.o.o.
HR
100%
100%
Ciak Makedonija
MKD
100%
100%
CIAK Truck d.o.o.
HR
100%
100%
100%
100%
Trgometal d.o.o.
HR
100%
100%
TM Auto d.o.o. *** HR
100%
50%
Cordia Trade d.o.o.
HR
100%
100%
C.I.A.K. Truck Srbija d.o.o.
RS
100%
100%
C.I.A.K. Truck Servis
HR
100%
100%
C.I.A.K. Truck
BiH
100%
100%
C.I.A.K. trade d.o.o.
HR
100%
100%
100%
100%
C.I.A.K. trade d.o.o. Brčko
****
BiH
100%
0%
CIAK USLUGE d.o.o. NOVI SAD
RS
100%
100%
100%
100%
C.I.A.K. Truck (Kamioland)
**
SLO
50%
50%
*DOI = direct ownership interest of parent company / EOI = effective ownership interest of parent company.
**Company accounted as equity accounted investee as of 1 January 2021
***Bought minority stake in the company
****Newly founded company
109
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 76
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.1 Basis of consolidation (continued)
(ii) Subsidiaries
Subsidiaries are all entities over which the Company has the power to govern the financial and operating
policies generally accompanying a shareholding of more than one half of the voting rights. The existence
and effect of potential voting rights that are currently exercisable or convertible are considered when
assessing whether the Company controls another entity. Subsidiaries are fully consolidated from the date
on which control is transferred to the Company and are de-consolidated from the date that control ceases.
(iii) Business combinations
The Group uses the acquisition method of accounting to account for business combinations (other than
business combinations under common control). The consideration transferred for the acquisition of a
subsidiary is the fair values of the assets transferred, the liabilities incurred and the equity interests issued
by the Group. The consideration transferred includes the fair value of any asset or liability resulting from
a contingent consideration arrangement. Acquisition related costs are expensed in the statement of
comprehensive income as incurred. Identifiable assets acquired and liabilities and contingent liabilities
assumed in a business combination are measured initially at their fair values at the acquisition date. On
an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquiree
either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net assets.
The excess of consideration transferred, the amount of any non-controlling interest in the acquiree and
acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the Group’s
share of the identifiable net assets acquired is recorded as goodwill. If this is less than the fair value of the
net assets of the subsidiary acquired in the case of bargain purchase, the difference is recognised directly
in the statement of comprehensive income.
(iv) Non-controlling interests
Non-controlling interests are initially measured by their proportionate share of recognised net assets of
the acquiree at the acquisition date. Changes in the Group’s share in the subsidiary that do not result in
loss of control are accounted for as transactions to owners.
(v) Loss of control over subsidiaries
When the Group loses control of a subsidiary, the subsidiary’s assets and liabilities and all related non-
controlling interests and other equity items are derecognised. Gains or losses are recognized in the income
statement. Retained share in the former subsidiary is measured at fair value when control is lost.
(vi) Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised gains arising from intra-group transactions, are
eliminated in preparing the consolidated financial statements. Unrealised gains arising from transactions
with associates and jointly controlled entities are eliminated to the extent of the Group’s interest in the
enterprise. Unrealised gains arising from transactions with associates are eliminated against the
investment in the associate. Unrealised losses are eliminated in the same way as unrealised gains, but
110
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 77
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.2 Goodwill
Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition
of the business, less accumulated impairment loss, if any.
For the purposes of impairment testing, goodwill is allocated to each of the Group's cash-generating
units (or groups of cash-generating units) that is expected to benefit from the synergies of the
combination.
A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more
frequently when there is indication that the unit may be impaired. If the recoverable amount of the
cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the
carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata
based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised
directly in the consolidated statement of comprehensive income. An impairment loss recognised for
goodwill is not reversed in subsequent periods.
On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the
3.3 Non-current assets held for sale
Non-current assets and disposal groups (which may include both non-current and current assets and
liabilities directly associated with those assets) are classified in the statement of financial position as ‘held
for sale’ if it is highly probable that their carrying amount will be recovered principally through a sale
transaction within twelve months after the reporting date rather than through continuing use. Non-
current assets classified as held for sale in the current period’s consolidated statement of financial
position are not reclassified in the comparative consolidated statement of financial position.
Held-for-sale property, plant and equipment or disposal groups as a whole are generally measured at the
lower of their carrying amounts and fair values less costs to sell or distribute. Held-for-sale property, plant
and equipment are not depreciated.
111
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 78
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.4 Revenue recognition
Revenue is measured based on the consideration specified in a contract with a customer. The Group
recognises revenue when it transfers control over a good or service to a customer and specific criteria
have been met for each of the Group’s activities as described below.
Revenue is recognised net of value-added tax, volume rebates, trade discounts and returns.
(i) Revenue from wholesale and retail of merchandise
The Group sells trade goods of third parties (for which the Group is a distributor) as part of its wholesale
and retail activities. Revenue is recognised when the Group has delivered the products to the customer,
there is no continuing management involvement over the goods, and there is no unfulfilled obligation
that could affect the customer’s acceptance of the products.
Delivery does not occur until the products have been shipped to the specified location, the control has
been transferred to the customer and either of the following has occurred: the customer has accepted
the products in accordance with the contract, the acceptance provisions have lapsed or the Group has
objective evidence that all criteria for acceptance have been satisfied. The most common parity is the CIP,
where the control is transferred to the customer at the moment the goods are delivered and the delivery
note is confirmed upon the transfer of goods.
Products are sold with volume discounts and customers have a right to return products in case of defects.
For contracts that permit the customer to return an item, revenue is recognised to the extent that it is
highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur.
Therefore, the amount of revenue recognised is adjusted for expected returns, which are estimated based
on the historical data. In these circumstances, a refund liability and a right to recover returned goods asset
are recognised. The right to recover returned goods asset is measured at the former carrying amount of
the inventory. The refund liability is included in other payables and the right to recover returned goods is
included in inventory. The Group reviews its estimate of expected returns at each reporting date and
updates the amounts of the asset and liability accordingly.
Sales are recorded based on the price specified in the sales contracts, net of estimated volume rebates
and trade discounts and returns. The volume discounts are assessed based on contracts with customers.
No element of financing is deemed present in the sales.
Retail sales are usually in cash or by credit card.
(ii) Revenue from services
The Group generates revenue from services primarily through sales of services such as waste management
and vehicle related services (repairs and similar). Revenue from waste management services is recognised
at a point in time when the services is completed (generally when the waste has been collected for
processing or delivered for processing to third parties as is the case with special and hazardous waste).
Revenues from vehicle related services are recognised over time, by reference to stage of completion
calculated on the basis of the actual services provided as a proportion of the total services to be provided
and are mostly rendered within a very short timeframe of one to several days.
(iii) Finance income
Finance income comprises interest income on funds invested and foreign currency gains. Interest income
is recognised as it accrues, using the effective interest method. Dividend income is recognised when the
112
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 79
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.5 Leases - Group as a lessee
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or
contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time
in exchange for consideration. To assess whether a contract conveys the right to control the use of an
identified asset, the Group uses the definition of a lease in IFRS 16.
At commencement or on modification of a contract that contains a lease component, the Group allocates the
consideration in the contract to each lease component on the basis of its relative stand-alone prices.
The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-
use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for
any lease payments made at or before the commencement date, plus any initial direct costs incurred and an
estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site
on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement
date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Group
by the end of the lease term or the cost of the right-of-use asset reflects that the Group will exercise a
purchase option. In that case the right-of-use asset will be depreciated over the useful life of the underlying
asset, which is determined on the same basis as those of property and equipment. In addition, the right-of-
use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of
the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily
determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing
rate as the discount rate.
The Group determines its incremental borrowing rate by obtaining interest rates from various external
financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased.
Lease payments included in the measurement of the lease liability comprise the following:
- fixed payments, including in-substance fixed payments;
- variable lease payments that depend on an index or a rate, initially measured using the index or
rate as at the commencement date;
- amounts expected to be payable under a residual value guarantee; and
- the exercise price under a purchase option that the Group is reasonably certain to exercise, lease
payments in an optional renewal period if the Group is reasonably certain to exercise an extension
option, and penalties for early termination of a lease unless the Group is reasonably certain not
to terminate early.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when
there is a change in future lease payments arising from a change in an index or rate, if there is a change in the
Group’s estimate of the amount expected to be payable under a residual value guarantee, if the Group
changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a
revised in-substance fixed lease payment.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying
amount of the right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset
has been reduced to zero.
The Group presents right-of-use assets that do not meet the definition of investment property in separate
line items in the statement of financial position.
Short-term leases and leases of low-value assets
The Group has elected not to recognise right-of-use assets and lease liabilities for leases of low-value assets
and short-term leases, including IT equipment. The Group recognises the lease payments associated with
these leases as an expense on a straight-line basis over the lease term.
113
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 80
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.6 Foreign currency transactions
(i) Transactions and balances in foreign currencies
Transactions in foreign currencies are translated into the functional currency at the foreign exchange rate
ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at
the reporting date are retranslated into the functional currency at the foreign exchange rate ruling at that
date. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation of monetary assets and liabilities denominated in foreign currencies are recognised in profit
or loss.
Non-monetary assets and items that are measured in terms of historical cost of a foreign currency are not
retranslated.
Non-monetary assets and liabilities denominated in foreign currencies, which are stated at historical cost,
are translated into functional currency at foreign exchange rates ruling at the date of transaction.
(ii) Group companies
Income and expense items and cash flows of foreign operations are translated into the Company’s and
Group’s presentation currency at rates approximating the foreign exchange rates ruling at the dates of
transactions and their assets and liabilities are translated at the exchange rates ruling at the year end. All
resulting exchange differences are recognised in a separate component of equity. The applicable foreign
exchange rates for relevant currencies are included within currency risk disclosures.
3.7 Government grants
Government grants are not recognised until there is reasonable assurance that the Group will comply with
the conditions associated with them and that the grants will be received. Government grants are
recognised in profit or loss on a systematic basis over the periods in which the Group recognises as
expenses the related costs for which the grants are intended to compensate.
3.8 Dividends
Dividend distribution to the Company’s shareholders is recognised as a liability in the consolidated
financial statements in the period in which the dividends are approved by the General Assembly of the
Company’s shareholders.
114
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 81
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.9 Segment reporting
A segment is a distinguishable component of the Group that is engaged either in sales of related products
or services (business segment) or in sales of products and services within a particular economic
environment (geographical segment) and is subject to risks and rewards that are different from those of
other segments.
At the consolidated level, the Group internally monitors and reports the following segments:
Auto program – vehicles
Truck program
Batteries, oils and similar
Wholesale
Ecology
The Group identifies operating segments on the basis of internal reports about components of the Group
that are regularly reviewed by the chief operating decision maker (Director or the Management Board of
the Company) in order to allocate resources to the segments and to assess their performance. Details on
the operating segments are disclosed in note 6 to the consolidated financial statements. Comparative
information is presented using the comparability principle.
3.10 Taxation
(i) Income tax
Income tax expense comprises current and deferred tax. Tax expense is recognised in the statement of
comprehensive income except to the extent that it relates to items recognised in other comprehensive
income or directly in equity, in which case it is recognised in the statement of other comprehensive
income or in equity.
Income tax for the current year is calculated on the basis of the tax laws enacted at the balance sheet
date in countries where the Company and its subsidiaries operate and earn taxable profit.
(ii) Deferred tax assets and liabilities
Deferred tax is recognised using the balance sheet method, providing for temporary differences between
the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for
taxation purposes. Deferred tax is not recognised for the following temporary differences: the initial
recognition of goodwill, the initial recognition of assets or liabilities in a transaction that is not a business
combination and that affects neither accounting nor taxable profit. Deferred tax assets for deductible
temporary differences arising from investments in subsidiaries, and interests in joint arrangements, are
only recognised to the extent that it is probable that the temporary difference will reverse in the
foreseeable future and that taxable profit will be available against which the temporary difference will be
utilised, while liabilities are recognised only to the extent that the entity is able to control the timing of
the reversal of the differences and it is probable that the reversal will not occur in the foreseeable future.
Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences
when they reverse, based on the laws that have been enacted or substantively enacted by the reporting
date.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be
available against which temporary difference can be utilised. Deferred tax assets are reduced to the extent
that it is no longer probable that the related tax benefit will be realised. Deferred tax asset recognised on
the basis of tax losses carried forward is recognised in accordance with tax legislation of the country where
the company operates for the period envisaged by the law and is discharged at the expiry of this period if
it is not used until then.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax
liabilities and assets, and they relate to taxes levied by the same tax authority on the same taxable entity,
or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their
tax assets and liabilities will be realised simultaneously.
115
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 82
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.11 Property, plant and equipment
Property, plant and equipment are included in the consolidated statement of financial position at cost
less accumulated depreciation and accumulated impairment losses, if any. Cost includes expenditure that
is directly attributable to the acquisition of the items.
Subsequent expenditure is included in the asset’s carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to
the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is
derecognised. All other repairs and maintenance are charged to the consolidated statement of
comprehensive income during the financial period in which they are incurred.
Land and assets under construction are not depreciated. Depreciation of other items of property, plant
and equipment is calculated using the straight-line method to allocate their cost to their residual values
over their estimated useful lives, as follows:
Buildings
20 to 40 years
Plant and equipment
2 to 10 years
Transport assets
4 to 10 years
The residual value of an asset is the estimated amount that the Group would currently obtain from
disposal of the asset less the estimated costs of disposal, if the asset were already of the age and in the
condition expected at the end of its useful life. The assets’ residual values and useful lives are reviewed,
and adjusted if appropriate, at each reporting date and when necessary.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount (note 3.13).
Gains and losses on disposals are determined as the difference between the income from the disposal
and the asset’s carrying amount, and are recognised in profit or loss within other income/expenses.
3.12 Intangible assets
Intangible assets are included in the consolidated statement of financial position at cost less accumulated
amortisation and accumulated impairment losses, if any. Cost includes expenditure that is directly
attributable to the acquisition of the items.
Computer software
Computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use
the specific software. These costs are amortised over their useful lives estimated at 5 years.
Brands
Brands arising on an acquisition of a business is carried at fair value as established at the date of acquisition
of the business, less accumulated amortisation. Amortisation is calculated using the straight-line method to
allocate the cost of the brand over its estimated useful life. Brands with an indefinite useful life are not
116
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 83
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.13 Impairment of non-financial assets
At each reporting date, the Group reviews the carrying amounts of its non-financial assets (apart from
inventories and deferred taxes) to determine whether there is any indication that those assets have suffered
an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to
determine the extent of the impairment loss. Where it is not possible to estimate the recoverable amount of
an individual asset, the Group estimates the recoverable amount of the “cash-generating unit” (“CGU”) to
which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate
assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest
group of cash-generating units for which a reasonable and consistent allocation basis can be identified.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the
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 the asset.
If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the
carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is
expensed immediately. Where an impairment loss subsequently reverses, the carrying amount of the
asset (or CGU) is increased to the revised estimate of its recoverable amount, but so that the increased
carrying amount does not exceed the carrying amount that would have been determined had no
impairment loss been recognised for the asset (or CGU) in prior years. A reversal of an impairment loss is
117
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 84
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.14 Inventories
Inventories of raw materials and spare parts are stated at the lower of cost, determined using the
weighted average cost method, and net realisable value. Net realisable value is the estimated selling price
in the ordinary course of business.
The cost of work-in-progress and finished goods comprises raw materials, direct labour, other direct costs
and related production overheads (based on normal operating capacity).
Merchandise is carried at the lower of purchase cost and selling price (less applicable taxes and rebates).
Group annually makes an estimate of inventory value based on turnover of each individual item. Based
on that calculation Group recognises loss allowance for items that fall short of expected turnover rate
for that type of product.
Allowance for items with lower turnover than expected based on historical experience is accounted as
3.15 Cash and cash equivalents
Cash and cash equivalents comprise cash in hand, deposits held at call with banks and other short-term
highly liquid instruments with original maturities of three months or less. Bank overdrafts are included
within current liabilities on the consolidated statement of financial position.
3.16 Share capital
Share capital consists of ordinary shares. Incremental costs directly attributable to the issue of new shares
or options are shown in equity as a deduction, net of tax, from the proceeds of those transactions. Any
excess of the fair value of the consideration received over the par value of the shares issued is presented
in the notes as a share premium.
In case the Group purchases its own share capital (treasury shares), the consideration paid, including any
directly attributable incremental costs (net of income tax) is deducted from equity attributable to the
Company’s equity holders until the shares are cancelled, reissued or disposed of. Where such shares are
subsequently sold or reissued, any consideration received, net of any directly attributable incremental
transaction costs and the related income tax effects, is included in equity attributable to the Company’s
equity holders.
3.17 Employee benefits
(i) Short-term employee benefits
The Group recognises a provision for employee bonuses where contractually obliged or where there is a
past practice that has created a constructive obligation.
(ii) Pension obligations and post-employment benefits
In the normal course of business, the Group makes payments to mandatory pension funds operated by
third parties on behalf of its employees as required by law. All contributions made to the mandatory
pension funds are recorded as salary expense when incurred. The Group is not obliged to provide any
other post-employment benefits with respect to these pension schemes and they are therefore treated
as defined contribution plans.
118
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 85
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.18 Provisions
Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past
event and it is probable (i.e. more likely than not) that an outflow of resources will be required to settle the
obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at
each reporting date and adjusted to reflect the current best estimate. Where the effect of discounting is
material, the amount of the provision is the present value of the expenditures expected to be required to
settle the obligation, determined using the estimated risk free interest rate as the discount rate. Where
discounting is used, the reversal of such discounting in each year is recognized as a financial expense and the
3.19 Financial instruments
A. Financial assets
(i) Recognition and initial measurement
Trade receivables are initially recognised when they are originated. All other financial assets are initially
recognised when the Group becomes a party to the contractual provisions of the instrument.
A financial asset (unless it is a trade receivable without a significant financing component) is initially measured
at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or
issue. A trade receivable without a significant financing component is initially measured at the transaction
price.
(ii) Classification and subsequent measurement
On initial recognition, a financial asset is classified as measured at:
- amortised cost;
- FVOCI (fair value through other comprehensive income) – debt investment;
- FVOCI – equity investment;
- or FVTPL (fair value through profit or loss).
Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its
business model for managing financial assets, in which case all affected financial assets are reclassified on the
119
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 86
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.19 Financial instruments (continued)
A. Financial assets (continued)
(ii) Classification and subsequent measurement (continued)
A financial assets is measured at amortised cost if it meets both of the following conditions and is not
designated as at FVTPL:
- it is held within a business model whose objective is to hold assets to collect contractual cash
flows; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated
as at FVTPL:
- it is held within a business model whose objective is achieved by both collecting contractual cash
flows and selling financial assets; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect
to present subsequent changes in the investment’s fair value in OCI. This election is made on an
investment-by-investment basis.
All financial assets not classified as measured at amortised cost or FVOCI as described above are measured
at FVTPL. This includes all derivative financial assets. On initial recognition, the Group may irrevocably
designate a financial asset that otherwise meets the requirements to be measured at amortised cost or
at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would
otherwise arise.
Business model assessment
The Group makes an assessment of the objective of the business model in which a financial asset is held
at a portfolio level because this best reflects the way the business is managed and information is provided
to management. The information considered includes:
- the stated policies and objectives for the portfolio and the operation of those policies in practice.
These include whether management’s strategy focuses on earning contractual interest income,
maintaining a particular interest rate profile, matching the duration of the financial assets to the
duration of any related liabilities or expected cash outflows or realising cash flows through the
sale of the assets;
- how the performance of the portfolio is evaluated and reported to the Group’s management;
- the risks that affect the performance of the business model (and the financial assets held within
that business model) and how those risks are managed;
- how managers of the business are compensated – e.g. whether compensation is based on the fair
value of the assets managed or the contractual cash flows collected; and
- the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such
sales and expectations about future sales activity.
Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not
considered sales for this purpose, consistent with the Group’s continuing recognition of the assets.
Trade receivables are held in the business model of holding for the purpose of collection.
Financial assets that are held for trading or are managed and whose performance is evaluated on a fair
120
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 87
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.19 Financial instruments (continued)
A. Financial assets (continued)
(ii) Classification and subsequent measurement (continued)
Assessment whether contractual cash flows are solely payments of principal and interest
For the purposes of this assessment, relevant for the purpose of classifying financial assets at amortised
cost, ‘principal’ is defined as the fair value of the financial asset on initial recognition. ‘Interest’ is defined
as consideration for the time value of money and for the credit risk associated with the principal amount
outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk
and administrative costs), as well as a profit margin.
In assessing the main criterion, i.e. whether the contractual cash flows are solely payments of principal and
interest, the Group considers the contractual terms of the instrument. This includes assessing whether
the financial asset contains a contractual term that could change the timing or amount of contractual cash
flows such that it would not meet this condition.
The structure of the Group’s financial assets is simple and primarily relates to trade receivables without a
significant financial component, loans given and short-term deposits in banks at fixed interest rates, while
forward contracts are of insignificant amount. This significantly reduces the complexity of the assessment
whether the financial assets meet the criterion of ‘solely payments of principal and interest'.
Subsequent measurement and gains and losses
The table below provides an overview of key provisions of the accounting policy used by the Group for
subsequent measurement of financial assets and recognition of gains and losses:
Financial assets
at amortised
cost
These assets are subsequently measured at amortised cost using the effective
interest method. The amortised cost is reduced by impairment losses. Interest
income, foreign exchange gains and losses and impairment are recognised in profit
or loss. Any gain or loss on derecognition is recognised in profit or loss.
(iii) Derecognition
The Group derecognises a financial asset when the contractual rights to the cash flows from the financial
asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which
substantially all of the risks and rewards of ownership of the financial asset are transferred or in which
the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does
not retain control of the financial asset.
The Group enters into transactions whereby it transfers assets recognised in its statement of financial
position, but retains either all or substantially all of the risks and rewards of the transferred assets. In
these cases, the transferred assets are not derecognised.
121
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 88
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.19 Financial instruments (continued)
B. Financial liabilities
(i) Recognition and initial measurement
Debt securities are initially recognised when they are originated. All other financial liabilities are initially
recognised when the Group becomes a party to the contractual provisions of the instrument.
A financial liability is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are
directly attributable to its acquisition or issue.
(ii) Classification and subsequent measurement
Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified
as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial
recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any
interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at
amortised cost using the effective interest method. Interest expense and foreign exchange gains and
losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss.
(iii) Derecognition
The Group derecognises a financial liability when its contractual obligations are discharged or cancelled,
or expire. The Group also derecognises a financial liability when its terms are modified and the cash flows
of the modified liability are substantially different, in which case a new financial liability based on the
modified terms is recognised at fair value.
On derecognition of a financial liability, the difference between the carrying amount extinguished and the
consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit
or loss.
C. Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the statement of
financial position when, and only when, the Group currently has a legally enforceable right to set off the
amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability
122
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 89
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.19 Financial instruments (continued)
D. Impairment of non-derivative financial assets
Recognition of impairment losses
The Group recognises loss allowances for ECLs on:
- financial assets measured at amortised cost;
- debt investments measured at FVOCI; and
- contract assets.
The Group measures loss allowances at an amount equal to lifetime ECLs, except for the following, which
are measured at 12-month ECLs:
- debt securities that are determined to have low credit risk at the reporting date; and
- other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over
the expected life of the financial instrument) has not increased significantly since initial
recognition.
Loss allowances for trade receivables are always measured at an amount equal to lifetime ECLs.
When determining whether the credit risk of a financial asset has increased significantly since initial
recognition and when estimating ECLs, the Group considers reasonable and supportable information that
is relevant and available without undue cost or effort. This includes both quantitative and qualitative
information and analysis, based on the Group’s historical experience and informed credit assessment and
including forward-looking information.
The Group assumes that the credit risk on a financial asset has increased significantly if early warning
indicators have been activated in accordance with the Group’s policy or contractual terms of the
instrument.
The Group considers a financial asset to be fully or partially in default if:
- the borrower is unlikely to pay its credit obligations to the Group in full, without recourse by the
Group to actions such as realising security (if any is held); or
- the financial asset is more than 360 days past due based on historical experience of average
market participant.
Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial
instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible within the 12
months after the reporting date (or a shorter period if the expected life of the instrument is less than 12
months).
The maximum period considered when estimating ECLs is the maximum contractual period over which
the Group is exposed to credit risk.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the difference
between the cash flows due to the Group in accordance with the contract and the cash flows that the
Group expects to receive. Regular external trade receivables that are not past due and uncollected
receivables past due up to 360 days from the maturity date are impaired using the percentage that reflects
the expectations of the non-collection of trade receivables (ECL). The percentage of impairment is determined
on the basis of the average of the previous three-year period (historical rate) separately for each of the
Group’s companies. The calculation of the historical rate is adjusted for extraordinary and specific
circumstances, if required.
123
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 90
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.19 Financial instruments (continued)
Credit-impaired financial assets
At each reporting date, the Group assesses whether financial assets carried at amortised cost and debt
securities at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that
have a detrimental impact on the estimated future cash flows of the financial asset have occurred.
Evidence that a financial asset is credit-impaired includes the following observable data:
- significant financial difficulty of the borrower or issuer;
- a breach of contract such as a significant delay of payment by the borrower;
- it is probable that the borrower will enter bankruptcy or other financial reorganisation; or
- the disappearance of an active market for a security because of financial difficulties.
Presentation of allowance for ECL in the statement of financial position.
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying
amount of the assets. For debt securities at FVOCI, the loss allowance is charged to profit or loss and is
recognised in OCI.
Write-off of financial assets
The gross carrying amount of a financial asset is written off when the Group has no reasonable
expectations of recovering a financial asset in its entirety or a portion thereof. The Group has a policy of
writing off the gross carrying amount of a financial asset upon the legal statute of limitation and it
generally expects no recovery of the amount written off.
3.20 New standards and interpretations that have not yet been adopted
The following new standards, interpretations, and amendments to existing standards are mandatory for
periods beginning on 1 January 2024:
• Amendments to IFRS 16 Leases: Lease liability in a sale and leaseback transaction
• Amendments to IAS 1 Presentation of Financial Statements: Classification of liabilities as current or
non-current, Long-term liabilities with covenants
• Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier
finance arrangements.
The adoption of these standards did not have a significant impact on the amounts presented in the
statement of financial position or the statement of comprehensive income, or on the disclosed accounting
policies.
The following new standards, interpretations, and amendments to existing standards issued by the IASB
and adopted by the EU are either not yet effective or have not been adopted by the EU, and therefore
the Group has not adopted them early and does not expect them to have a significant impact on the
Group's financial statements when they become effective:
• Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of exchangeability
• Amendments to the Classification and Measurement of Financial Instruments (IFRS 7 and IFRS 9):
Classification of financial assets, Electronic payment settlements
• IFRS 1, IFRS 7, IFRS 9, IFRS 10, IAS 7 Annual Improvements Volume 11: Clarifications, simplifications,
corrections, and amendments aimed at improving the consistency of these IFRS standards
• IFRS 18 Presentation and Disclosure in Financial Statements: New standard
• IFRS 19 Subsidiaries without Public Accountability – Disclosures: New standard
• Amendments to IFRS 9 and IFRS 7: Contracts for nature-dependent electricity – Nature-linked
124
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 91
NOTE 4 – KEY ACCOUNTING JUDGEMENTS AND ESTIMATES
The preparation of financial statements in conformity with EU IFRS requires management to make
judgments, estimates and assumptions that affect the application of policies and reported amounts of
assets and liabilities, income and expenses. The estimates and associated assumptions are based on
historical experience and various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making the judgments about carrying values of assets
and liabilities that are not readily apparent from other sources. Actual results may differ from these
estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which the estimate is revised if the revision affects only that
period or in the period of revision and future periods if the revision affects both current and future
periods.
Judgments made by management in the application of EU IFRSs that have significant effect on the financial
statements and estimates with a significant risk of material adjustments in the next year are discussed
125
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 92
NOTE 4 – KEY ACCOUNTING JUDGEMENTS AND ESTIMATES (continued)
(i) Recoverability of trade and other receivables
The recoverable amount of trade and other receivables is estimated at present value of future cash flows
discounted at the market interest rate at the measurement date. Short-term receivables with no stated
interest rate are measured by the amount of original invoice if the effect of discounting is not significant.
The Group regularly reviews the ageing structure of trade receivables and monitors the average collection
period. In cases where debtors with extended payment periods are identified, the Group reduces the
related credit limits and payment days for future transactions and, in cases where it deems it necessary,
imposes restrictions on future transactions until the outstanding balance is repaid either entirely or in
part. In cases where the Group identifies receivables toward debtors which have entered into pre-
bankruptcy or bankruptcy proceedings, an impairment loss is immediately recognised in full.
By applying the percentage that reflects expectations on the non-collection of trade receivables (expected
credit loss), the Group impairs undue regular external trade receivables and past due uncollected
receivables up to 360 days from the maturity date.
In the process of regulating the collection of overdue debts, the Group actively negotiates with the
respective debtors taking into account expectations of future business relations, significance of exposure
to an individual debtor, possibilities of compensation, exercise of instruments of security (if any) or seizure
of assets, etc.
(ii) Recoverability of goodwill and intangible assets with indefinite useful life
Group regularly annually tests goodwill and intangible assets with indefinite useful life and goodwill for
impairment as stated in note 3.13. Goodwill and intangible assets with indefinite useful life are tested
individually.
Goodwill and brands are allocated to the following segments:
Brand
Goodwill
Brand
Goodwill
2024.
2023.
(in thousands of EUR)
(in thousands of EUR)
Batteries, oils and similar
-
149
-
149
Freight program
-
191
-
191
Car program
7,073
591
6,529
344
Ecology
-
63
-
-
7,073
994
6,529
126
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 93
NOTE 4 – KEY ACCOUNTING JUDGEMENTS AND ESTIMATES (continued)
(iii) Testing for impairment of goodwill and intangible assets with indefinite useful life
Goodwill
The recoverable amount of goodwill is determined using the discounted cash flow method (DCF method)
whereby the Group calculates the present value of future cash flows of cash-generating units attributable
to goodwill. The DCF method used to determine the recoverable amount of goodwill also implies a
terminal growth rate after a five-year discrete period of 3,5%. Cash flows created from such plans are
discounted using a discount rate that reflects the risk of the respective asset, approximated by weighted
average cost of capital for the relevant market and industry segment and ranged from 10% (goodwill
related to Croatian market) to 13% (goodwill related to Bosnian market).
As a result of the conducted goodwill impairment test, the Group had no goodwill impairment expense
during 2024. The sensitivity analysis of the assumptions does not indicate material differences in the
outcome of impairment testing compared to amounts recognised for goodwill in the statement of
financial position.
Brands
Brands refer to the acquired rights to use trademarks and brand names that the Group allocates to
business segments in accordance with the internal categorization of products to which a specific brand
refers, whereby the value of the brand is fully allocated to a specific segment.
The Group annually performs an impairment test for brands to assess whether the recoverable amount
of the brands indicates a potential impairment of the book value, whereby the primary focus is given to
those brands where the deviation of the recoverable amount compared to the book value indicates a
significant sensitivity to the key assumptions used in the impairment tests. The calculation of the
recoverable amount is based on the five-year sales plans of the products that make up each brand, which
the Group developed taking into account the corporate sales and marketing strategy, trends in the
markets where individual brands are sold (such as expected trends in the subject gross social product,
market share of relevant products and categories) and competitor analysis.
Cash flows generated from such plans are discounted using an after-tax discount rate that reflects the risk
of the asset in question and which, for purposes of calculating the impairment test, is approximated by
the weighted average cost of capital (WACC) related to the primary sales market of the particular brand
and industry.
To calculate the recoverable value of the brands as of 31 December 2023, the group applied the income
approach - the relief from royalty method.
The basis of the relief from royalty method states that the value of an intangible asset is equal to the
amount that the owner would pay for a license over that asset if he did not own it, that is, the value is
equal to the discounted after-tax savings in a situation of non-payment of royalties, i.e. fees for the use
of trademarks.
During the acquisition of company SIM Impex d.o.o. in 2024, the Group assessed the fair value of the
brand. This assessment was considered relevant for reporting purposes as of 31 December 2024, as the
Management Board determined that there were no significant changes in circumstances and/or adverse
changes in the business operations of the acquired company. Details regarding the brand valuation
methods used in business acquisitions are presented in Note 31 Business Combinations.
As part of the strategic and operational reorganization of the subsidiary Auto Milovanović d.o.o., aimed
at improving operational efficiency and business performance, the full rebranding of sales locations,
logistics, and delivery vehicles to the CIAK Auto brand is expected.
127
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 94
NOTE 4 – KEY ACCOUNTING JUDGEMENTS AND ESTIMATES (continued)
Brands (continued)
Accordingly, in 2024 the Management Board of the Company has decided to impair the Auto Milovanović
brand. The impairment expense of EUR 3,738 thousand is presented in the Statement of comprehensive
income.
When calculating the recoverable value of other brands, rates were used that are equal to the weighted
average cost of capital after tax (WACC) for a particular market and industry and are within the range of
12% to 13% (2023: in the range of 13% to 14%), while the applied terminal growth rate for all brands is
2.5% (in 2023 in the range 2.5%).
An increase of weighted average cost of capital by 50 basis points with an unchanged terminal growth
rate would not result in an impairment of other brands. A decrease in the terminal growth rate with an
unchanged rate of the weighted average cost of capital by 50 basis points would not result in a decrease
in value.
NOTE 5 – DETERMINATION OF FAIR VALUES
The Group has an established control framework with respect to fair value measurement which assumes
the overall responsibility of the Management Board and finance department in relation to the monitoring
of all significant fair value measurements, consultation with external experts and the responsibility to
report, with respect the above, to those charged with corporate governance.
Fair values are measured using information collected from third parties in which case the Board and the
finance department assess whether the evidence collected from third parties support the conclusion that
such valuations meet the requirements of IFRSs, including the level in the fair value hierarchy where such
valuations should be classified.
Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the
valuation techniques as follows:
- Level 1 - quoted prices (unadjusted) in active markets for identical assets
or liabilities.
- Level 2 - inputs other than quoted prices included in level 1, that are
observable for the asset or liability either directly (i.e. as prices) or indirectly
(i.e. derived from prices).
- Level 3 - input variables for assets or liabilities that are not based on
observable market data (unobservable inputs).
The fair value of financial instruments traded in active markets is based on quoted market prices at the
balance sheet date. A market is regarded as active if quoted prices are readily and regularly available from
an exchange, dealer, broker, industry group, or regulatory agency, and those prices represent actual and
regularly occurring market transactions on an arm’s length basis.
The fair value of financial instruments that are not traded in an active market (for example, over-the-
counter derivatives) is determined by using valuation techniques. These valuation techniques maximise
the use of observable market data where it is available and rely as little as possible on entity specific
estimates. If all significant inputs required to fair value an instrument are observable, the instrument is
included in level 2.
If one or more significant inputs are not based on observable market data, the fair value estimate is
included in level 3.
The Group does not have significant amounts related to items measured at fair value in the financial
128
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 95
NOTE 6 – SALES REVENUE AND SEGMENT REPORTING
2024.
2023.
(in thousands of EUR)
Revenue from products
333,291
263,160
Waste management services
11,451
9,513
Revenue from other services
5,452
5,042
Other
361
126
350,555
277,841
Other sales revenues are mostly comprised of revenues from marketing and leasing activities.
For management purposes, the Group is organised in business units based on the similarity in the nature
of individual product groups and the nature of the distribution and sales channel and has identified
reportable segments in accordance with quantitative thresholds for segment reporting. The reportable
segments of the Group are as follows:
Auto program – vehicles
Truck program
Batteries, oils and similar
Wholesale
Ecology
The reportable segments are part of the internal financial reporting to the Management Board which was
identified as the chief operating decision maker. The Management Board reviews the internal reports
regularly and assesses the segment performance, and uses those reports in making operating decisions.
Segment revenues and results
Set out below is an analysis of the Group’s revenue and results by its reportable segments, presented in
accordance with IFRS 8 Operating segments and a reconciliation of segment profits to profit or loss before
tax as presented in the consolidated statement of comprehensive income. The revenue presented below
relates to third-party sales and revenues between segments. Intra-segment revenues are eliminated on
consolidation.
(in thousands of EUR)
Segment revenues
Segment Earnings
2024.
2023.
2024.
2023.
Auto program - vehicles
257,401 198,875 16,480 10,509
Truck program
38,818
38,273
626
1,542
Batteries, oils and similar
68,599 53,880 1,898 2,529
Wholesale
13,692 11,125 1,147 1,015
Ecology
30,077
25,467
849
1,170
408,587
327,620
21,000
16,765
Inter-segment revenues
(58,032) (49,779)
-
-
350,555
277,841
21,000
16,765
Finance income
258
245
Finance expenses
(4,481)
(2,711)
Central administration and other costs
(6,261)
(4,709)
Profit before tax
10,516
129
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 96
NOTE 6 – SALES REVENUE AND SEGMENT REPORTING (CONTINUED)
Segment revenues and results (continued)
The segment “Auto program – vehicles” operates as a retail channel for sales of auto parts in the
"Independent Aftermarket" (IAM), i.e. market for repair and maintenance of vehicles. Typical products
are brakes, filters, wipers, shock absorbers, lights, suspension parts, batteries, tires, oils, antifreeze,
accessories, etc.
Truck program operates as wholesale of truck parts in the IAM. Typical products are brakes, filters, wipers,
shock absorbers, lights, suspension parts, batteries, tires, oils, antifreeze, accessories, etc.
Generators, oils and similar includes the wholesale of batteries, industrial batteries, oils, lubricants and
other automotive equipment such as brooms, additives, etc. through several sales channels: wholesale in
the IAM, wholesale to products end users, wholesale to gas stations and retail.
Wholesale segment relates to wholesale to large retail chains which includes sales of car supplies (e.g. car
cosmetics, windshield washer fluid, steering wheel covers, batteries, etc.), textiles (bedding, towels,
blankets, etc.), garden program (mowers, trimmers, flaxers, saws) to retail chains.
Ecology comprises two sub-segments: recycling and waste management. The recycling operations relate
to the recycling of accumulators and industrial batteries at the Recycling Centre in Zabok, which is the only
closed system for recycling accumulators and batteries in Croatia. Waste management includes the
collection, treatment and disposal of hazardous and non-hazardous waste (e.g. motor oils, filters, grease,
etc.), remediation of contaminated sites, maintenance of industrial plants, consulting services related to
hazardous waste, etc.
The accounting policies of the reportable segments are the same as the Group’s accounting policies
described in note 3. Segment profit represents the profit earned by each segment without allocation of
central administration costs, other income, other expenses, finance expenses, and income tax expense.
Geographical information
The Group operates in seven principal geographical areas by which it reports third-party sales:
2024.
2023.
(in thousands of EUR)
Croatia
196,996
172,009
Serbia
67,362
44,416
Bosnia and Herzegovina
43,805
33,389
Slovenia
17,111
7,070
Montenegro
21,383
17,576
North Macedonia
3,893
3,381
Kosovo
5
-
350,555
277,841
130
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 97
NOTE 6 – SALES REVENUE AND SEGMENT REPORTING (CONTINUED)
Non-current assets (intangible assets, property, plant and equipment and right of use assets) based on the
geographical areas are presented as follows:
2024.
2023.
(in thousands of EUR)
Croatia
46,175
35,192
Serbia
11,901
7,600
Bosnia and Herzegovina
18,512
12,887
Slovenia
3,280
1,429
Montenegro
7,434
6,472
North Macedonia
821
540
Kosovo
19
-
88,142
64,120
NOTE 7 – OTHER INCOME
2024.
2023.
(in thousands of EUR)
Gain from sale of non-current assets
689
912
Income from damage claims
440
1,204
Subsidies
238
335
Rent income
167
164
Write-off of liabilities
31
188
Other
933
880
2,498
3,683
NOTE 8 – MATERIAL COSTS
2024.
2023.
(in thousands of EUR)
Cost of goods sold
193,784
153,382
Raw materials and consumables used
38,360
32,564
232,144
185,946
131
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 98
NOTE 9 – OTHER OPERATING EXPENSES
2024.
2023.
(in thousands of EUR)
Transport and logistics
4,799
3,359
Vehicle and similar repairs
2,925
2,093
Impairment of inventories
2,367
2,135
Banking and similar charges
2,030
1,020
Maintenance
2,003
1,678
Entertainment
1,395
1,003
Advertising and similar costs
1,109
939
Intellectual services
1,099
769
Taxes, fees and similar charges
928
762
Insurance
883
561
Impairment of receivables
865
2,348
Vehicle costs
863
830
Telecommunications and postal services
834
671
Utilities and fees
682
410
Rent expense
617
1,436
Daily subsistence allowances and other travel expenses
565
645
Inventory surpluses / shortfalls
546
1,192
Office materials
488
388
Authors fee
283
102
Membership fees, fees and similar charges
248
208
Security services
219
166
Penalties, penalties and damages
131
126
Donations
62
84
Legal expenses
59
32
Increase/(decrease) in provisions
(76)
350
Other
1,441
884
-
27,365
24,191
NOTE 10 – EMPLOYEE EXPENSES
2024.
2023.
(in thousands of
EUR)
Net salaries
44,643
32,205
Taxes and contributions
17,487
12,858
Other employee' costs
4,550
3,335
-
66,680
48,398
As at 31 December 2024, the number of staff employed by the Group was 3,409 (2023: 2,658). Other
132
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 99
NOTE 11 – FINANCE INCOME
2024.
2023.
(in thousands of EUR)
Interest income
50
28
Positive FX difference
200
215
Other finance income
8
1
-
258
244
NOT
E 12 – FINANCE EXPENSES
2024.
2023.
(in thousands of EUR)
Interest expenses and similar
4,137
2,488
Negative FX difference
335
216
Other finance costs
9
6
-
4,481
2,710
NOTE 13 – INCOME TAX
Income tax expense consists of:
2024.
2023.
(in thousands of EUR)
Current income tax
1,608
2,522
Deferred tax
(324)
68
1,284
2,590
133
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 100
NOTE 13 – INCOME TAX (continued)
A reconciliation of tax expense per the statement of comprehensive income and taxation at the statutory
rate is detailed in the table below:
2024.
2023.
(in thousands of EUR)
-
Profit before taxation
10,516
9,590
-
Income tax at 18%
1,893
1,726
Non-taxable income
(1,148)
-
Non-deductible expenses
800
741
Temporary differences and tax losses not recognised as deferred tax assets
(5)
10
Effect of a change in the tax rate on deferred tax assets and liabilities
(256)
113
Income tax
1,284
2,590
Effective tax rate
12%
27%
In its financial statements,
the Group has recognized deferred tax assets in its financial statements based
on tax losses exclusively for the newly acquired company in Slovenia. As for other losses the Group did
not recognize deferred tax assets on tax losses, since it is not certain that the tax losses will be used by
the companies to which they relate. Unutilized tax losses (net) at the reporting date were as follows:
2024.
2023.
(in thousands of EUR)
Tax losses expiring at 31 December 2025
12
12
Tax losses expiring at 31 December 2026
50
50
Tax losses expiring at 31 December 2027
209
209
Tax losses expiring at 31 December 2028
460
460
Tax losses expiring at 31 December 2029
148
-
Tax losses expiring at 31 December 2031
1,136
-
2,015
134
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 101
NOTE 13 – INCOME TAX (continued)
Deferred tax assets
(in thousands of EUR)
PPE
Trade and other
receivables
Inventory
Tax losses
Trade and
other payables
Total
At 1 January 2023
112
150
23
-
76
361
Business combinations
-
4
-
-
-
4
Net increase/(decrease)
(75)
(7)
52
-
(40)
(70)
As at 31 December 2023
37
147
75
-
36
295
At 1 January 2024
265
1,060
375
376
469
295
Business combinations
-
164
39
604
4
811
Net increase/(decrease)
(27)
26
2
-
(4)
(3)
As at 31 December 2024
10
337
116
604
36
1,103
Deferred tax liabilities
(in thousands of EUR)
PPE
Intangible assets
Trade and other
receivables
Total
At 1 January 2023
68
709
3
780
Net increase/ (decrease)
-
-
(2)
(2)
As at 31 December 2023
68
709
1
778
At 1 January 2024
68
709
1
778
Business combinations
-
428
-
428
Net increase/ (decrease)
-
(374)
47
(327)
As at 31 December 2024
68
763
48
135
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 102
NOTE 14 – INTANGIBLE ASSETS AND GOODWILL
(in thousands of EUR)
Brand
Goodwill
Software
Leasehold
improvements
Investments
in progress
Total
Cost
At 1 January 2023
6,529
571
1,964
1,426
67
10,557
Additions
-
-
-
-
789
789
Business combinations
-
113
46
-
6
165
Transfers
-
-
671
166
(837)
-
Disposals and write offs
-
-
-
(17)
-
(17)
-
-
1
1
-
2
As at 31 December 2023
6,529
684
2,682
1,576
25
11,496
Accumulated amortisation
At 1 January 2023
-
-
995
768
-
1,763
Business combinations
-
-
28
-
-
28
Charge for the year
-
-
267
179
-
446
Disposals and write offs
-
-
-
(4)
-
(4)
As at 31 December 2023
-
-
1,290
943
-
2,233
Cost
At 1 January 2024
6,529
684
2,682
1,576
25
11,496
Additions
-
-
64
5
1,309
1,378
Business combinations
4,282
310
613
137
31
5,373
Transfers
-
-
514
525
(1,039)
-
Disposals and write offs
-
-
(7)
(20)
(28)
(55)
FX
-
-
(1)
-
-
(1)
As at 31 December 2024
10,811
994
3,865
2,223
298
18,191
Accumulated amortisation
At 1 January 2024
-
-
1,290
943
-
2,233
Business combinations
-
-
354
112
-
466
Charge for the year
-
-
451
237
-
688
Brand impairment
3,738
-
-
-
-
3,738
Disposals and write offs
-
-
(7)
(18)
-
(25)
As at 31 December 2024
3,738
-
2,088
1,274
-
7,100
Net book value at 1 January 2024.
6,529
684
1,392
633
25
9,263
-
-
-
-
-
-
Net book value at 31 December 2024.
7,073
994
1,777
949
298
11,091
Testing for impairment of goodwill and intangible assets with indefinite useful life is disclosed in Note 4.
As presented in Note 4, as part of the strategic and operational reorganization of the subsidiary Auto
Milovanović d.o.o., the Company's Management Board decided to impair the value of the Auto
136
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 103
NOTE 15 – PROPERTY, PLANT AND EQUIPMENT
(in thousands of EUR)
Land and
buildings
Plant and
equipment
Transport
assets
Investments
in progress
Total
Cost
At 1 January 2023
22,674
16,391
6,170
3,327
48,562
Additions
-
-
-
9,695
9,695
Business combinations
-
132
124
-
256
Transfers
3,844
3,853
2,024
(9,721)
-
Disposals and write offs
(1,676)
(607)
(827)
-
(3,110)
Transfer From ROA
-
-
1,303
-
1,303
As at 31 December 2023
24,842
19,769
8,794
3,301
56,706
Accumulated depreciation and impairments
At 1 January 2023
7,036
10,266
4,010
-
21,312
Business combinations
-
106
95
-
201
Charge for the year
354
2,446
1,213
-
4,013
Disposals and write offs
(283)
(417)
(661)
-
(1,361)
Transfer to ROA
-
-
1,053
-
1,053
As at 31 December 2023
7,107
12,401
5,710
-
25,218
Cost
At 1 January 2024
24,842
19,769
8,794
3,301
56,706
Additions
-
189
76
13,095
13,360
Business combinations
1,196
3,529
1,243
-
5,968
Transfers
4,009
7,210
681
(11,900)
-
Disposals and write offs
-
(1,791)
(564)
-
(2,355)
Transfer to ROA
-
-
(245)
(2,980)
(3,225)
As at 31 December 2024
30,047
28,906
9,985
1,516
70,454
Accumulated depreciation and impairments
At 1 January 2024
7,107
12,401
5,710
-
25,218
Business combinations
408
2,670
500
-
3,578
Charge for the year
814
3,301
1,200
-
5,315
Disposals and write offs
-
(1,096)
(463)
-
(1,559)
Transfers
249
418
(667)
-
-
As at 31 December 2024
8,578
17,694
6,280
-
32,552
Net book value at 1 January 2024
17,735
7,368
3,084
3,301
31,488
Net book value as at 31 December
2024
21,469
11,212
3,705
1,516
37,902
Assets under construction mainly relate to buildings and plant and equipment.
Assets under mortgage
Land and buildings with a carrying value of EUR 7,438 thousand (2023: EUR 6,964 thousand) are under
mortgage and collateral for bank loans.
137
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 104
NOTE 16 – RIGHT OF USE ASSETS
(in thousands of EUR)
Land and
buildings
Plant and
equipment
Transport
assets
Total
Net book value at 1 January 2023
15,851
1,035
3,763
20,649
Additions
4,812
209
2,288
7,309
Business combinations
1,393
-
11
1,404
Modifications
945
(54)
(13)
878
Charge for the year
(5,185)
(251)
(1,185)
(6,621)
Transfer to PPE
-
-
(250)
(250)
As at 31 December 2023
17,816
939
4,614
23,369
Net book value at 1 January 2024
17,816
939
4,614
23,369
Additions
9,228
261
382
9,871
Business combinations
2,128
3
535
2,666
Modifications
8,859
(3)
(50)
8,806
Charge for the year
(7,050)
(205)
(1,507)
(8,762)
Disposals and write offs
-
-
(26)
(26)
Transfer from PPE
-
54
3,171
3,225
As at 31 December 2024
30,981
1,049
7,119
39,149
138
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 105
NOTE 17 – EQUITY ACCOUNTED INVESTEES
2024.
(in thousands
EUR)
As at 1 January
315
Share of profit/(loss) of joint venture
2
-
As at 31 December
317
A s at 1 January 2021, the Group no longer has control over Kamioland d.o.o. However, through
ownership of 50%, the Group retained a significant influence over the company. As of 1 January 2021
Kamioland d.o.o. is accounted as equity accounted investee.
NOTE 18 – FINANCIAL ASSETS
2024.
2023.
(in thousands of EUR)
Deposits
261
390
261
390
Short term
83
27
Long term
178
365
261
392
Deposits relate to deposits at commercial banks with maturity more than three months that carry a
139
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 106
NOTE 19 – INVENTORIES
2024.
2023.
(in thousands of EUR)
Raw materials and supplies
3,544
4,163
Trade goods and merchandise
128,718
89,406
Small inventory
53
53
Advances for inventories
1,697
1,188
Security downpayment
1,182
988
-
135,194
95,798
Movements in write-down of inventory is recognized in other operating operations within profit or loss.
In 2024 it is amounted to 2,367 thousands of EUR (2023: 2,135 thousands of EUR).
In accordance with accounting policies, the Group analyses the expected turnover per item based on
historical sales information and, based on the results of the analysis, recognizes a decrease in the value of
inventories to the estimated net realizable value.
The Group is actively using its presence on multiple markets to optimize inventory management.
In other markets e.g. Serbia, Bosnia and Hercegovina and Montenegro, average age of vehicles is
significantly higher than in Croatia and therefore demand for some slow moving parts is also higher.
NOTE 20 – TRADE AND OTHER RECEIVABLES
2024.
2023.
(in thousands of EUR)
Trade receivables
47,321
41,455
Impairment of receivables
(5,652)
(4,744)
Net trade receivables
41,669
36,711
Interest receivables
48
56
Receivables for taxes and contributions
1,282
1,370
Advances given
254
228
Receivables from employees
118
150
Loans receivable
1,556
1,498
Accrued rebates
8,049
4,990
Prepayments
2,177
1,552
Other receivables
549
612
-
55,702
47,167
Short term
55,414
46,867
Long term
288
300
55,702
140
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 107
NOTE 20 – TRADE AND OTHER RECEIVABLES (continued)
During 2024, within other operating expenses the Group recognised impairment allowances in the
amount of EUR 865 thousand (2023: EUR 2,350 thousand) with respect to trade receivables and other
receivables.
Movement in the accumulated impairment allowance for trade and other receivables was as follows:
2024.
2023.
(in thousands of EUR)
At 1 January
4,744
3,307
Net Increase/decrease
974
2,419
Amounts collected
(109)
(69)
Business combinations
365
132
Written off as uncollectable
(322)
(1,045)
At 31 December
5,652
4,744
Ageing analysis of gross trade receivables:
2024.
2023.
(in thousands of EUR)
Not due
27,328
23,055
0-90 days
11,698
9,956
91-180 days
2,064
2,218
181-360 days
1,486
1,656
More than 360 days
4,745
4,570
47,321
41,455
The Group uses an allowance matrix to measure the ECLs of trade receivables from individual customers,
which comprise a very large number of small balances. Loss rates are calculated using a “roll rate” method
based on the probability of a receivable progressing through successive stages of delinquency to write-
off. Roll rates are calculated separately for exposures in different segments based on the following
common credit risk characteristics – geographic region, age of customer relationship and type of product
purchased. Loss rates are based on actual credit loss experience over three years.
Trade receivables in original currency (net amount):
2024.
2023.
(in thousands of EUR)
EUR
27,600
26,545
BAM
6,168
3,755
RSD
7,327
5,631
MKD
574
780
41,669
36,711
141
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 108
NOTE 21 – CASH AND CASH EQUIVALENTS
2024.
2023.
(in thousands of EUR)
Cash register
767
357
Cash with banks
14,471
13,349
Overnight bank deposits
6,500
-
21,738
13,706
Cash with banks relates to transaction accounts at commercial banks that carry an average interest
rate around 0,11% (2023: 0,11%).
In 2024, the Group initiated the process of investing in overnight deposits with banks to optimize
financial income. The average interest rate earned on overnight deposits follows the EURIBOR rate,
with occasional minor deviations.
The table below summarises cash and cash equivalents by currency:
2024.
2023.
(in thousands of EUR)
EUR
15,564
10,749
RSD
3,143
1,068
BAM
2,932
1,485
MKD
92
286
Other currencies
7
118
21,738
13,706
NOTE 22 – NON-CURRENT ASSETS HELD FOR SALE
2024
2023
(in thousands of EUR)
Land and buildings
236
359
236
359
Non-current assets held for sale relates to smaller items of Plant and Equipment.
142
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 109
NOTE 23– SHARE CAPITAL AND EARNINGS PER SHARE
Share capital
Share capital on the 31 December 2024 amounts to EUR 26,215 thousand and consists of 19,751,989
shares outstanding (2023: 19,751,989). Nominal share price is EUR 1.33 per share.
The ownership structure at the reporting dates was as follows (total number of shares reduced by
treasury shares):
2024.
2023.
Ownership structure
Number of shares
% of ownership
Number of shares
% of ownership
Ivan Leko
10,006,913
50.71%
10,000,694
50.64%
Ljilja Leko
3,180,140
16.12%
3,180,140
16.10%
Others
6,546,069
33.18%
6,566,155
33.25%
Total
19,733,122
100.00%
19,746,989
100.00%
Earnings per share
2024.
2023.
(in thousands of EUR)
Profit attributable to owners
9,285
7,025
Shares outstanding as at 31 December (excluding treasury shares)
19,733,122
19,746,989
Average weighted number of shares
19,741,263
19,679,864
Basic earnings per share
0.47
0.36
Diluted earnings per share
0.47
NOTE 24 – CAPITAL RESERVES
Capital reserves refer to capital gains on sold issued shares.
NOTE 25 – TREASURY SHARES
During 2024, the Group purchased 26,221 shares in the amount of EUR 176 thousands (2023: 23,750
shares in the amount of EUR 159 thousand). As at 31 December 2024 treasury shares amount to EUR
126 thousands (18,867 shares) (31 December 2023: EUR 34 thousand (5,000 shares)). During 2024, the
Group awarded its own shares in the amount of EUR 84 thousand to Group employees based on a
discretionary decision of the General Assembly.
143
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 110
NOTE 26 – NON-CONTROLLING INTERESTS
Group has non-controlling interests arising from ownership interest in subsidiaries Autodijelovi d.o.o.
(Croatia) and Bendj trade d.o.o. (Bosnia and Herzegovina). In 2021. Due to loss of control of Kamioland,
is now accounted through equity accounting Summary financial information for these companies are
as follows:
31 December 2024
BENDJ TRADE
d.o.o.
AUTO DIJELOVI
d.o.o.
(in thousands of EUR)
-
-
Non-controlling interest
38%
50%
-
-
Non-current assets
268
-
Current assets
-
257
Non-current Liabilities
-
(10)
Current liabilities
(35)
(282)
-
-
Net assets
233
-35
-
Statement of comprehensive income
-
Revenues
-
352
Profit
(4)
(55)
Total comprehensive income
(4)
(55)
-
Statement of cash flows
-
Increase/ (decrease) of cash
-
4
The movement in non-controlling interest was as follows:
2024.
2023.
(in thousands of EUR)
-
As at 1. January
(37)
(12)
Gain/ (Loss) attributable to the Group
(53)
(25)
Purchase of minority stake in TM AUTO
24
-
(66)
(37)
Consists of
Auto Dijelovi d.o.o.
(59)
(31)
Bendj trade d.o.o.
(7)
(6)
144
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 111
NOTE 27 – LOANS AND BORROWINGS
2024.
2023.
(in thousands of EUR)
Non-current borrowings
Bank borrowings
54,149
37,028
Other loans
116
206
Lease liabilities
29,913
17,247
84,178
54,481
Current borrowings
Bank borrowings
13,709
12,834
Other loans
320
338
Interest liabilities
39
123
Lease liabilities
10,876
6,644
24,944
19,939
-
Total borrowings
109,122
74,420
The Group’s borrowings contain covenants which obligate the Group to comply with (such as DSCR).
which is calculated as the ratio of consolidated gross financial debt and consolidated EBITDA (operating
profit before interest, depreciation and taxes) In case the specified ratios are breached, the loans
would be considered matured in full and payable on the bank’s request. At the reporting dates, the
Group was in compliance with the covenants.
Bank loans in the amount of EUR 67,858 thousand (2023: EUR 49,861 thousand) are insured through
mortgages on land, buildings, plant and equipment amounting to EUR 7.438 thousand (2023: EUR
6,964 thousand) as stated in note 15.
The maturity of non-current bank borrowings and other loans is as follows:
2024.
2023.
(in thousands of EUR)
Between 1 and 2 years
9,510
23,958
Between 2 and 5 years
27,391
13,276
Over 5 years
17,364
-
54,265
145
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 112
NOTE 27 – LOANS AND BORROWINGS (CONTINUED)
The maturity of non-current lease liabilities is as follows:
2024
2023
(in thousands of EUR)
-
Between 1 and 2 years
9,641
5,893
Between 2 and 5 years
15,185
9,056
Over 5 years
5,087
2,298
29,913
17,247
The carrying amounts of the Group’s borrowings are denominated in the following currencies:
Borrowings:
2024
2023
(in thousands of EUR)
EUR
64,080
48,177
BAM
4,047
1,851
MKD
167
275
RSD
-
103
68,294
50,406
Leases:
2024
2023
(in thousands of EUR)
EUR
28,897
18,441
BAM
7,976
5,450
RSD
3,916
-
40,789
23,891
An overview of borrowings by fixed and variable interest rates is as follows:
2024
2023
Fixed
Variable
Fixed
Variable
(in thousands of EUR)
Borrowings
3,735
64,559
11,667
38,739
The average weighted cost of debt on the Group’s interest-bearing liabilities was as follows:
2024
2023
EUR
EUR
Averege weighted interest rate
4.51%
3.9%
146
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 113
NOTE 27 – LOANS AND BORROWINGS (CONTINUED)
Reconciliation of movements in liabilities with cash flows from financing activities:
(in thousands of EUR)
Loans and
borrowings
Leases
Total
At 1. January 2023
41,892
20,702
62,594
Cash transactions:
Loans received
22,159
-
22,159
Loans repayments
(13,908)
-
(13,908)
Lease repayments
-
(7,988)
(7,988)
Total cash transactions
8,251
(7,988)
263
Non - cash transactions:
Effect of change in exchange rates
54
46
100
Business combinations
209
1,397
1,606
Unwinding of discount
-
430
430
Modifications
-
938
938
New lease contracts
-
8,366
8,366
Total non - cash transactions
263
11,177
11,440
At 31. December 2023
50,406
23,891
74,297
At 1. January 2024
50,406
23,891
74,297
Cash transactions:
Loans received
71,522
-
71,522
Loans repayments
(53,881)
-
(53,881)
Lease repayments
-
(10,826)
(10,826)
Total cash transactions
17,641
(10,826)
6,815
Non - cash transactions:
Effect of change in exchange rates
(3)
(17)
(20)
Business combinations
250
3,008
3,258
Unwinding of discount
-
1,141
1,141
Modifications
-
7,603
7,603
New lease contracts
-
15,989
15,989
Total non - cash transactions
247
27,724
27,971
At 31. December 2024
68,294
40,789
109,083
147
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 114
NOTE 28 – PROVISIONS
As part of contracts with its suppliers, Group has contracts with its suppliers which include estimated
amounts of returns with right of reimbursement from suppliers. The Group's assessment is that
additional provisions for the warranty period for the stated reason are not necessary because in
previous periods the cost did not exceed the contracted amounts for reimbursement from suppliers
and therefore the Group did not incur costs of product returns. For the stated reason, the Group does
not have material amounts of recognized provisions on the stated basis.
NOTE 29 – TRADE AND OTHER PAYABLES
2024.
2023.
(in thousands of EUR)
-
Trade payables
87,024
59,990
Taxes, contributions and other duties payable
11,343
8,610
Payable for purchase of shares
10,270
202
Salaries and other benefits to employees
4,146
2,724
Advances received
1,285
715
Accrued expenses
2,198
1,925
Liability for unused holiday
884
892
Obligations based on profit sharing
1
-
Other payables
744
797
-
117,895
117,895
Current
106,714
74,684
Non-current
11,181
1,171
117,895
75,855
Within trade payables, the amount of EUR 7,911 thousand (2023: EUR 6,209 thousand) refers to the
liability for supplier chain financing arrangement (reverse factoring).
The group has concluded agreements on reverse factoring for the management of its working capital.
According to the contracts, the Group transfers its payables to suppliers to factoring companies, which
pay the payables to suppliers on behalf of the Group, and the Group repays the payables to factoring
companies with an extended maturity of up to 180 days. Given that the extended maturities do not
exceed the market conditions common to the business sectors in which the Group operates, the Group
presents the aforementioned liabilities within working capital.
At reporting dates the carrying amounts of trade and other payables approximate their fair values due
to the short-term nature of those liabilities.
Long term liabilities for the purchase of shares were discounted to their present value as follows:
2024.
2023.
(in thousands of EUR)
Undiscounted payable for purchase of shares
12,134
202
Discount
(1,864)
-
10,270
The cost of unwinding the discount is included in interest expenses presented in Note 12 and amounts
to EUR 186 thousand in 2024.
148
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 115
NOTE 29 – TRADE AND OTHER PAYABLES (continued)
The maturity of non-current trade and other payables is as follows:
2024.
2023.
(in thousands of EUR)
Between 1 and 2 years
270
270
Between 2 and 5 years
10,911
901
11,181
1,171
The structure of trade and other payables with respect to currency denomination as at the reporting
dates was as follows
2024.
2023.
(in thousands of EUR)
EUR
107,748
69,331
RSD
5,378
4,270
BAM
2,067
1,296
MKD
1,085
487
Other
1,617
462
117,895
75,846
149
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 116
NOTE 30 – RISK MANAGEMENT
Financial risk management
Categories of financial instruments are as follows:
2024.
2023.
(in thousands of EUR)
Financial assets
Long-term loans
1,556
1,498
Long-term deposits
261
390
Trade receivables
41,669
36,711
Other receivables
549
612
Cash and cash equivalents
21,738
13,706
-
Total financial assets
65,773
52,917
Financial liabilities at amortised cost
Loans and borrowings
68,294
50,406
Lease liabilities
40,789
23,891
Trade payables and other liabilities
101,521
63,629
Total financial liabilities
210,604
137,926
Fair value of financial instruments
The fair value of financial assets and financial liabilities is determined as follows:
the fair value of financial assets and financial liabilities with standard terms and conditions and
traded on active liquid markets is determined with reference to quoted market prices,
the fair value of other financial assets and financial liabilities is determined in accordance with
generally accepted pricing models, based on discounted cash flow analysis using prices from
150
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 117
NOTE 30 – RISK MANAGEMENT (continued)
Fair value of financial instruments (continued)
Financial instruments held to maturity in the ordinary course of business are recorded at the lower of
cost and net amount less the portion repaid. Fair value is determined as the amount at which a financial
instrument can be exchanged between willing and knowledgeable parties in an arm's-length
transaction, except in the event of forced sale or liquidation. The fair value of financial instruments is
the one quoted on the securities market or obtained using the discounted cash flow method.
As at the reporting dates, the carrying amounts of cash and cash equivalents, short-term deposits,
receivables, short-term liabilities, accrued expenses, short-term borrowings and other financial
instruments approximate their fair value due to the short-term nature of those assets and liabilities
and due to the fact that a majority of short term assets and liabilities are at variable interest rates.
As at the reporting dates, the carrying amounts of borrowings arising from bank and other loans
approximates their fair values as the majority of these borrowings bear variable interest rates or fixed
interest rate approximating current market interest rates.
Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the Management Board, which has
built an appropriate liquidity risk management framework to manage the Group’s short, medium and
long-term funding and liquidity requirements. The Group manages liquidity risk by monitoring the net
current asset position and by addressing any expected current liquidity deficits.
Liquidity risk analysis
The following tables detail the contractual maturity of the Group’s financial liabilities and financial
assets presented in the consolidated statement of financial position at each reporting period end. The
tables have been drawn up based on the undiscounted cash flows until maturity and include cash flows
from both interest and principal. Ultimate responsibility for liquidity risk management rests with the
Management Board which has built an appropriate liquidity risk management framework to manage
the short, medium and long-term funding and liquidity requirements. The Group manages liquidity
risk by monitoring the net current asset position and by addressing any working capital requirements.
as at 31 December 2024
Net book
value
Contracted
cash flow
Up to one
year
1 - 5 years
over 5 years
(thousands of EUR)
Non-interest bearing liabilities:
Trade and interest payables
101,521
101,521
90,340
11,181
-
101,521
101,521
90,340
11,181
-
Interest bearing liabilities:
Loans and borrowings
68,294
79,552
14,384
42,876
22,292
Lease liabilities
40,789
44,378
11,064
27,274
6,040
109,083
123,930
25,448
70,150
28,332
Total liabilities
210,604
225,451
115,788
81,331
28,332
Non-interest bearing assets:
Trade and other receivables
55,702
55,702
55,414
288
-
Cash and cash equivalents
21,738
21,738
21,738
-
-
77,440
77,440
77,152
288
-
Financial assets
261
267
84
183
-
261
267
84
183
-
Total assets
77,701
77,707
77,236
471
-
Net liquidity position
(132,903)
(147,744)
(38,552)
(80,860)
(28,332)
151
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 118
NOTE 30 – RISK MANAGEMENT (continued)
as at 31 December 2023
Net book
value
Contracted
cash flow
Up to one
year
1 - 5 years
over 5 years
(thousands of EUR)
Non-interest bearing liabilities:
Trade and interest payables
63,620
63,620
62,449
1,171
-
63,620
63,620
62,449 1,171 -
Interest bearing liabilities:
Loans and borrowings
50,406
54,607
13,469
41,138
-
Lease liabilities
23,891
25,610
6,743
16,203
2,664
74,297
80,217
20,212
57,341
2,664
Total liabilities
137,917
143,837
82,661
58,512
2,664
Non-interest bearing assets:
Trade and other receivables
47,167
47,167
46,867
300
-
Cash and cash equivalents
13,706
13,706 13,706 - -
60.873
60.873
60,573
300
-
Financial assets
390
403
27
376
-
390
403
27
376
-
Total assets
61,263
61,276
60,600
676
-
Net liquidity position
(76,654)
(82,561)
(22,061)
(57,836)
(2,664)
As of the reporting date, the Group operates a network of more than 200 retail locations, the majority
of which are leased, resulting in a significant lease obligation. Furthermore, due to the specific nature
of the business, which requires a high level of stock availability in each retail unit within the network,
maintaining a substantial inventory level is essential. Given the above, sales conditions and the
structure of cash inflows are largely driven by the sale of goods without deferred payment, which has
a significant direct positive impact on the company's liquidity position.
Taking these factors into account, as well as the inventory turnover achieved by the Group, the
Management Board considers the Group's net liquidity to be adequate.
Interest rate risk management
The Group is exposed to interest rate risk as it borrows funds at both fixed and variable interest rates.
Changes and projections of interest rates are monitored continuously as the majority of the Group’s
borrowings are at variable interest rates.
Interest rate sensitivity analysis
The sensitivity analysis below has been determined based on the exposure to interest rate changes at
the reporting date. For variable rate liabilities, the analysis is prepared by calculating the effect of a
reasonably possible increase in interest rates on variable rate debt on the expected contractual cash
flows of such debt compared to those calculated using the interest rates applicable at the current
reporting period end date. A 50 basis point increase/decrease is used when reporting interest rate risk
internally to key management personnel and represents the Management Board’s assessment of the
reasonably possible change in interest rates.
152
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 119
NOTE 30 – RISK MANAGEMENT (continued)
The estimated effect of the reasonably possible change in interest rates on the Group’s result before
tax for the reporting periods is as follows:
as at 31 December 2024
Contractual
cash flows
up to 1 year
from 1 to 5
years
over 5 years
(thousands of EUR)
At currently applicable interest rates
123,930
25,448
70,150
28,332
At currently applicable interest rates + 50 basis points
125,658
25,509
71,135
29,014
Effect of increase of interest rate by 50 basis points
(1,728)
(61)
(985)
(683)
as at 31 December 2023
Contractual
cash flows
up to 1 year
from 1 to 5
years
over 5 years
(thousands of EUR)
At currently applicable interest rates
80,217
20,212
57,341
2,664
At currently applicable interest rates + 50 basis points
80,993
20,261
58,003
2,729
Effect of increase of interest rate by 50 basis points
(776)
(49)
(662)
(65)
Cur
rency risk management
The Group performs certain transactions in foreign currencies and is therefore exposed to risks of
changes in exchange rates. The carrying amounts of the Group’s foreign currency denominated
monetary assets and monetary liabilities at the reporting date are as follows.
Liabilities
Assets
2024.
2023.
2024.
2023.
(thousands of EUR)
(thousands of EUR)
Bosnia and Hercegovina (BAM)
6,114
3,147
9,100
5,240
Serbia (RSD)
5,378
4,373
10,470
6,699
North Macedonia (MKD)
1,252
762
666
1,066
For
eign currency sensitivity analysis
The Group is primarily exposed to currency risk arising from changes in the exchange rate of the EUR
against convertible mark (BAM), the Serbian dinar (RSD), and Macedonian dinar (MKD) as it is
operating on foreign markets (B&H, Serbia and North Macedonia) and, other than in euro, records
most transactions with foreign customers in these currencies. Loans and borrowings are partly
denominated in EUR and partly denominated in local currencies.
153
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 120
NOTE 30 – RISK MANAGEMENT (continued)
The currency risk analysis is based on the official exchange rates for the currencies analysed above
which were as follows:
31 December
2024
31 December
2023
BAM
0.511
0.510
RSD
0.009
0.009
MKD
0.016
0.016
The following table details the Group’s sensitivity to a 1% increase in EUR against the BAM, RSD and
MKD as the estimated reasonably possible increase in the exchange rate of the respective currencies.
The sensitivity analysis includes only outstanding monetary assets and monetary liabilities in foreign
currency and their translation at the end of the period based on the percentage change in currency
exchange rates. A negative number below indicates a decrease in profit where EUR changes against
the relevant currency for the percentage specified above. For an inversely proportional change of EUR
against the relevant currency, there would be an equal and opposite impact on the profit.
BAM exposure
RSD exposure
2024.
2023.
2024.
2023.
(thousands of EUR)
(thousands of EUR)
Increase/ (decrease of net result
30
21
51
23
MKD exposure
2024.
2023.
(thousands of EUR)
Increase/ (decrease of net result
(6)
6
Market risk management
Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in
financial loss to the Group. The Group's exposure to credit risk is influenced mainly by the individual
characteristics of each customer. The demographics of the customer base, including the default risk of
the industry and country in which customers operate, has less of an influence on credit risk. The Group
has established a credit policy under which each new customer is analysed individually for
creditworthiness before standard payment and delivery terms and conditions are offered. The Group
establishes an allowance for impairment that represents its estimate of incurred losses in respect of
trade and other receivables and investments.
Total exposure to credit risk at the reporting date is as follows is set out in note 29 to the financial
statements. The Group does not have a significant credit exposure that is not covered by security
instruments, or not reflected in the estimates of indications of impairment as at the reporting dates.
154
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 121
NOTE 31– BUSINESS COMBINATIONS
During 2024, the Group successfully completed several acquisitions. In all acquisitions Group
acquired 100% of shares outstanding. Overview of acquisitions is listed below:
Company
Segment
Date of acquisition
% of ownership
CIAK AUTO SLOVENIJA d.o.o.
(ex Stahlgruber trgovina d.o.o.)
Auto program
30.4.2024 100%
ARS PARTS D.O.O.
Auto program
31.5.2024
100%
Jumetal d.o.o.
Ecology
31.8.2024 100%
SIM IMPEX d.o.o. BiH
Auto program
30.9.2024
100%
During IPO process, Group stated that one of the key goals is strengthening its position in the
regional markets and consolidating of still unconsolidated markets in the region.
Net assets of acquired companies
Fair value of assets and liabilities was as follows:
(in thousands of EUR)
Note
SIM
IMPEX
d.o.o.*
CIAK AUTO
SLOVENIJA
d.o.o.*
Other
business
combinations
Total
Intangible assets
14
4,572
25
-
4,597
Property, plant and equipment
15
1,537
691
162
2,390
Right of use assets
16
1,332
1,334
-
2,666
Deferred tax assets
13
159
652
-
811
Inventories
9,300
2,264
55
11,619
Trade and other receivables
2,215
1,321
230
3,766
Income tax receivable
94
-
3
97
Financial assets
29
-
-
29
Cash and cash equivalents
1,400
860
50
2,310
Loans
27
-
-
(250)
(250)
Lease liabilities
27
(1,659)
(1,349)
-
(3,008)
Deferred tax liability
13
(428)
-
-
(428)
Trade and other payables
(5,777)
(810)
(210)
(6,797)
Net identifiable assets acquired
12,774
4,988
40
17,802
Cash
1,388
350
1,738
Payable for purchase of shares
29
9,996
-
9,996
Total acquisition cost
11,384
350
11,734
Goodwill
310
310
Bargain purchase
6,378
6,378
Period form acquisition date till 31. December 2024
Revenue
6,904
9,251
629
16,784
Profit / (loss)
131
(611)
(25)
(505)
* Since the acquisition of Sim Impex d.o.o. and CIAK Auto d.o.o., Slovenia was a related transaction,
price to the net acquired assets of both companies as a single unit. The acquisition dates differ due to
obtaining competition-related approvals in Bosnia and Herzegovina.
obtaining competition-related approvals in Bosnia and Herzegovina.
155
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 122
NOTE 31– BUSINESS COMBINATIONS (continued)
In the event that all acquisitions happened on 1 January 2024, consolidated revenues and profits of
the Group would amount to:
Revenue up to acquisition date
2024.
(in thousands of EUR)
Revenue of acquired companies up to acquisition date
21,612
Consolidated revenue stated in FS
352,128
Total revenues had all business combinations occurred at 1. January 2024
373,740
Profit/ (loss) up to the acquisition date
2024.
(in thousands of EUR)
Net profit of acquired companies up to acquisition date
(1,559)
Net profit for the Group
9,232
Profit/ (loss) had all business combinations occurred at 1. January 2024
7,673
Methods used in determining fair values of assets
Caption Methods used
PPE
The fair value is determined using the amortized replacement cost
method. Amortized replacement cost is the estimated amount that
reflects both the physical depreciation and the functional and economic
obsolescence of the asset being estimated.
Intangible assets
It consists of brands. The fair value of the brands is based on a report by
an independent valuation expert who assessed them using the relief-
from-royalty method.
In determining the brand value, the valuator applied a royalty rate of
approximately 1.74% to the operating cash flows of the acquired
companies, projected over a three-year period, with a terminal growth
rate of 2% and discounted using a discount rate of 13%, depending on the
geographic market.
Inventory
The fair value of inventories acquired in a business combination is based
on the estimated selling price in the ordinary course of business, less the
estimated cost of selling the inventory.
Current Receivables
and current payables
Current receivables and payables were where recognised at nominal
value reduced for impaired amount and are approx. equal to their fair
values due to their short term nature.
Long term payables
Long-term liabilities are recognized at amortized cost and are
approximately equal to their fair value as they relate mainly to lease
liabilities with approximately market interest rates.
The increase in long-term liabilities upon acquisition is the result of
recognizing a deferred tax liability due to temporary differences arising
from the initial recognition of the acquired net assets at fair value.
156
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 123
NOTE 32 – RELATED PARTY TRANSACTIONS
The Group is in a related party relationship with its majority shareholder Ivan Leko, who is the ultimate
owner of the Company and parties related to him or entities under his control or significant influence.
The Group also has a related party relationship with key management personnel and Supervisory Board
members, their close family members and entities controlled, jointly controlled by them and/or their
close family members, in accordance with the definitions contained in International Accounting
Standard 24 Related Party Disclosures (“IAS 24”).
Transactions between the Company and its subsidiaries are eliminated through consolidation and are
not presented in this note. The list of subsidiaries is disclosed in note 3 to the financial statements.
Transactions with the owner and his related parties and entities under his control or significant
influence:
Sales Revenue
2024.
2023.
(in thousands of EUR)
Majority shareholder and parties related to majority shareholder
594
2,539
Equity-accounted investees 98 97
692
2,636
Cost of goods sold and other operating expenses
2024.
2023.
(in thousands of EUR)
Majority shareholder and parties related to majority shareholder 1,394 1,421
Equity-accounted investees
92
90
1,486
1,511
Trade and other receivables
2024.
2023.
(in thousands of EUR)
Majority shareholder and parties related to majority shareholder 708 548
Equity-accounted investees 33
59
741
607
Trade and other payables
2024.
2023.
(in thousands of EUR)
Majority shareholder and parties related to majority shareholder 2,469 3,122
Equity-accounted investees
3
57
2,472
3,179
Borrowings
2024.
2023.
(in thousands of EUR)
Majority shareholder and parties related to majority shareholder
4,644
929
4,644 929
157
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
CIAK Grupa d.d. and its subsidiaries 124
NOTE 32 – RELATED PARTY TRANSACTIONS (continued)
Transactions with key management and Supervisory Board members and their related parties:
Key management remuneration
2024
2023
(in thousands of EUR)
Gross I salaries, severance payments, bonuses
1,051
834
1,051
834
Key management of the Group comprises the Management Board and consisted of 5 persons (2023: 5
persons).
Total remuneration paid to Supervisory Board members in 2024 amounted to EUR 131 thousand for
seven members of the Supervisory Board (2023: EUR 118 thousand for seven members of the
Supervisory Board). As at 31 December 2024, the Supervisory Board had seven members.
CIAK
G R U P A
STATEMENT OF MANAGEMENT'S RESPONSIBILITIES
The Management Board is required to prepare the consolidated financial statements for each financial year
which give a true and fair view of the financial position of the Company and its subsidiaries ("the Group")
and
of the results of its operations and its cash flows, in accordance with applicable accounting standards,
,
and is responsible for maintaining proper accounting records to enable the preparation of such financial
statements at any time. It has a general responsibility for taking such steps as are reasonably available to
it to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.
The Management Board is responsible for selecting suitable accounting policies to conform with applicable
accounting standards and then apply them consistently; make judgements and estimates that are
reasonable and prudent; and prepare the consolidated financial statements on a going concern basis unless
it is inappropriate to presume that the Group will continue in business. After making enquiries, the
Management Board has a reasonable expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future. For this reason, the Management Board continues to
adopt the going concern basis in preparing the consolidated financial statements.
The Management Board is also responsible for the preparation and publishing, in accordance with the
Accounting act and other laws and regulations governing the preparation of financial statements in Croatia,
of the following:
Management Report, which includes the Sustainability Report;
Corporate Governance Report; and
Annual consolidated financial statements in single electronic reporting format.
The separate financial statements of the Company are published separately and issued simultaneously with
the annual consolidated financial statements.
The Management report which includes the Sustainability Report, and the Corporate Governance Report,
as well as the annual consolidated financial statements in single electronic reporting format were approved
and signed by th
�
nagement Board on 8 March 2025 for submission to the Supervisory Board.
Ivan Leko .
Oom;n; �
President of the Management
Member of the Management
Member the Management
Board Board
Board
CIAK Grupa d.d.
Savska Opatovina 36
10 000 Zagreb
Croatia
ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024.
2. April 2025 for submission to
the Supervisory Board.
171
Annual Report
2024
Annual Report 2024 - CIAK Grupa d.d. and its subsidiaries
CIAK Grupa d.d.
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Investor Relations
Annual Report
2024
Sustainable Mobility
www.ciak.hr
Annual Report 2024 - CIAK Grupa d.d. and its subsidiaries