Central European Capital LLC sold 100% of CEE Data a.s., the parent company of Česká kapitálová informační agentura, a.s. (ČEKIA) – a leading Czech business information provider – to Bisnode AB. ČEKIA will be part of Bisnode’s credit and risk information division which includes D&B (Dun & Bradstreet) in ten countries. The terms of the transaction will remain undisclosed.

Today CENTRAL EUROPEAN CAPITAL CZ and ČEKIA published the sixth annual EVA™ Ranking Czech Republic based on financial results for the year 2005. For the first time the largest Czech company by revenues ŠKODA AUTO also became the most profitable with an Economic Value Added of CZK 4.49 billion, followed by the second-largest in revenues, engery giant ČEZ, which managed to catapult itself into second rank and for the first time during the history of the ranking recorded positive EVA of CZK 3.56 billion based on the highest year-on-year EVA growth of CZK 10.58 billion since the inception of The EVA™ Ranking Czech Republic. The total EVA for the Top 100 Czech companies in 2005 grew by 38.2% year-on-year to CZK 56.4 billion. This and the fact that around half of the 1,700 companies included in the ranking had positive EVA underscore the health of the fast-growing Czech economy.

Today Akzo Nobel NV, the world’s largest coatings manufacturer, completed the acquisition of 100% of Balakom a.s., one of the leading Czech coatings manufacturers with strong brands such as Luxol and Komaxit. Balakom generated revenues of EUR 16 million in 2005 and employs 183 staff. Central European Capital LLC advised Akzo Nobel NV during negotiations and structuring of the acquisition. The terms of the transaction will remain undisclosed.

Today ITI Group announced the sale of its 82.35% controlling stake in Grupa Onet.pl S.A., which runs Poland’s leading internet portal Onet.pl, to Poland’s leading commercial television broadcaster TVN Group for PLN 165 per share. Central European Capital LLC prepared valuation services to ITI Group in this groundbreaking media convergence transaction. The total transaction value is PLN 1.093 billion (EUR 277.6 million).

Today the shareholders of Vodovody a kanalizace Chrudim, a.s. decided to sell its operating division and to sign a 25-year operating and rental agreement for its water infrastructure with Vodárenská společnost Chrudim, a.s. (VS Chrudim), a fully-owned subsidiary of Vodovody a kanalizace Jižní Čechy, a.s., in turn a subsidiary of Energie AG, the leading utility group in the Austrian province of Upper Austria. VS Chrudim will be responsible for the provision of water supply, sewerage and waste water treatment in the Eastern Bohemian district of Chrudim from 1.2.2006. The value of the transaction is CZK 155 million (EUR 5.35 million).

Today CENTRAL EUROPEAN CAPITAL CZ and ČEKIA published the fifth annual EVA™ Ranking Czech Republic based on financial results for the year 2004. For the first time during the history of the ranking Eurotel Praha dropped from the top spot where it was replaced by RWE Transgas which generated an EVA of CZK 2.91 billion. The EVA of both second-ranked Eurotel Praha and third Philip Morris ČR declined by more than CZK 0.75 billion while the largest growth was recorded by JOHNSON CONTROLS AUTOMOBILOVÉ SOUČÁSTKY with an increase of CZK 0.95 billion. The total EVA for the Top 100 Czech companies in 2005 grew by 45.5% year-on-year to CZK 40.8 billion.

Through its subsidiary CEE Data a.s. Central European Capital LLC today acquired 100% of Česká kapitálová informační agentura, a.s. (ČEKIA) – a leading Czech business information provider – from the Czech Press Agency (Česká tisková kancelář – ČTK). ČEKIA represents a unique opportunity to acquire a leading franchise in the high-growth sector of business information with expansion potential throughout the CEE region. The terms of the transaction will remain undisclosed.

As of 1 March 2005 Central European Capital’s Prague office is at:

Křemencova 164/18
110 08 Praha 1
Czech Republic

Tel: +420 222 250 252
Fax: +420 224 931 779
Email: office@ce-capital.com

Web: www.ce-capital.com

In cooperation with the Controller-Institut Praha, Central European Capital holds seminars about Economic Value Added - EVA™. The all-day seminar will take place on 16 March 2005 in the Hotel Ibis Karlín in Prague. Please register electronically by filling in the registration form on the Controller-Institut Praha web site www.controlling.cz or via faxing the following registration form: 

Detailed programme of the seminar and the registration form can  be obtained by emailing us at info@ce-capital.com

 EVA™ is becoming an ever more popular measure for performance and as the cornerstone of value-based management systems not only in the US, but also increasingly in Europe. More than any other measure, Economic Value Added provides a clear and consistent tool to be used for setting goals and measuring performance, evaluating strategies, allocating capital, valuing acquisitions and paying for performance. Under the EVA™ bonus system employees are paid in accordance with their attained results, while the system operates without upper or lower bonus limits, hence stimulating employees to higher performance. Companies adopting EVA™ are focused on growing the value of their business rather than managing their accounting earnings.

The seminar also includes a case study of the Model Group, which is an early adopter of an EVA™-based management system in the Czech Republic.

For more information about other planned EVA™ seminars please do not hesitate to contact us on Phone +420-221 628 153 or E-mail eva@ce-capital.com.

The accession of ten European countries to the European Union on 1 May 2004 has turned the international spotlight on these countries’ economies. While Cyprus and Malta are countries with very small and specific economies, the eight new European Union member states of Central Europe – Czech Republic, Hungary, Poland, Slovakia, Slovenia, Estonia, Latvia and Lithuania – represent an economically largely coherent space. As a group these Central European newcomers enjoy signficantly faster GDP growth than the 15 incumbent European Union member states, a situation projected to continue in the foreseeable future. The strongly growing interest in these eight Central European economies often runs into a relatively low level of corporate transparency. The cooperation with local partners in the Czech Republic, Hungary, Poland and Slovenia, which have a tradition of preparing company rankings by revenues in their respective countries, has significantly improved the efficiency of the data collection process for the TOP 1000 COMPANIES OF CENTRAL EUROPE ranking. The result is this comprehensive regional ranking of the 1000 largest corporations by revenues in the economic space represented by the eight new European Union member states of Central Europe.

The key facts of the TOP 1000 COMPANIES OF CENTRAL EUROPE ranking can be summarized as such:

1.       In 2003 there were 54 companies reaching more than EUR 1 billion in annual revenues, 13 companies topped EUR 2 billion, 9 companies generated more than EUR 3 billion and 5 companies exceeded EUR 4 billion. The largest company, Polski Koncern Naftowy Orlen (1/PL), achieved total revenues of EUR 7.668 billion.

2.       In total 792 companies in the eight new European Union member states of Central Europe topped EUR 100 million in annual revenues in 2003.

3.       Unsurprisingly Polish companies represented 44% of the total number included in the ranking, followed by Hungary and the Czech Republic.

4.       Despite a smaller economy in GDP terms, considerably more Slovenian companies (98) qualified for the Top 1000 than companies from Slovakia (59).

5.       The largest average company size can be found in the Czech Republic (EUR 394 million), with Latvian companies being on average the smallest (EUR 167 million).

6.       Total revenues generated by the companies included in the TOP 1000 COMPANIES OF CENTRAL EUROPE ranking in 2003 reached EUR 324 billion. This value represents over 70% of the combined GDP of all eight economies.

A detailed analysis of the 1000 largest companies by revenues in the eight new EU member states in Central Europe provides a new perspective on the structure of their economies by identifying key industries. A closer look at the Top 100 of the company ranking as well as the sector table in section 5 of this document unveils a strong concentration of the following sectors throughout the region:

§         Energy-related industries such as energy generation, gas and electricity distribution – in total representing EUR 44.3 billion in revenues

§         Automotive-related industries spanning components, production and distribution – in total representing EUR 34.1 billion – which are expected to remain the key drivers for FDI in the region in the foreseeable future

§         Financial services such as banking and insurance – in total representing EUR 26.9 billion

§         Petrochemicals – in total representing EUR 23.4 billion in revenues

§         Telecommunications and mobile communications – in total representing EUR 19.6 billion in revenues

§         Retail trade – in total representing EUR 17.9 billion in revenues

Common features of these sectors are their almost exclusive focus on the respective home markets as well as the fact that ownership in these companies is largely concentrated among multinational strategics and to an ever lesser extent some telecommunications and energy-related companies are still in state ownership.

Leaving aside the fact that most multinationals active in Central Europe operate in several countries, regional expansion by domestic champions in any of the Central European countries covered remains rather the exception than the rule. The most visible examples are the two largest companies in the region, Polski Koncern Naftowy Orlen (1/PL) and Mol Magyar Olaj és Gázipari (2/HU), which acquired UNIPETROL (22/CZ) and  Slovnaft (19/SK), respectively, and hence remained key players in the expected consolidation in the petrochemicals sector in Central and Eastern Europe which is likely also to include Austrian oil giant OMV. After EU accession and the fall of all residual market barriers (in particular to the largest market Poland) and elevated interest by EU and non-EU strategics in entering the region, cross-border M&A activity is likely to remain strong in coming years.

What remains rare like albinos are major Central European companies that have entered Western European, North American or Asian markets and successfully established their products (not to speak of services) against world-class international competition. The few positive examples include:

§          Slovenian home appliance manufacturer Gorenje Gospodinjski aparati (107/SLO), which has developed from a low-cost contract manufactuer to Western majors into a premium brand producer enjoying a high level of brand recognition in key Western European markets

§          Hungarian bus manufactuer NABI Észak-Amerikai Jármũipari (294/HU), which since its inception in 1993 has captured 20% of the US$ 1 billion-a-year US transit bus market by providing a fundamentally new value proposition to its mainly municipal customers

§          The four Polish shipyards represented in this ranking, which generated combined revenues of EUR 880 million in 2003, face global competition from competitors in other naval powers in Europe, North America and Asia

§          While achieved under the wings of Volkswagen AG, the quantum leap in product quality and the resurgence of the ©KODA AUTO (3/CZ) brand since the early 1990s was truly remarkable

While these examples are encouraging and even inspiring, acquiring the skills to succeed in the global marketplace by cost leadership, better technology or a value innovation to customers is a key challenge for Central European companies. The long-term prosperity of this region and its people depends on their success.

A massive shortage is also a feature of the supply of corporate champions in ICT and other technology-related industries in Central Europe. These potentially high margin industries such as e.g. electronics and IT services remain firmly under the control of multinationals. Except for a handful of home-grown Polish ICT firms of local importance such as Prokom Software (246/PL), ComputerLand (627/PL), Grupa Impel (784/PL),  Techmex (831/PL) and Apexim (904/PL) there is very little in terms of critical mass and surely no regional or global ICT or technology heavyweight.

The key competitive advantage of Central and Eastern Europe - low (productivity-adjusted) wages for a well qualified work force – continues to evaporate in the light of sustained real wage growth above the level of productivity gains and the “migration of industries” from Western European markets to Central Europe, then Eastern Europe and finally to China is a clearly observable trend.

What has happened to the textile industry in the early 1990s and other manufacturing industries over the past 3-5 years will one day happen in the automotive industry, currently a key driver for FDI, employment, tax and social security contribution flows and exports throughout Central Europe. Having stripped Western Europe of much of its manufacturing industries the pipeline of migrating industries will dry up very quickly for the new EU member states of Central Europe. Hence, the ability to compete on factors other than cheap labour will be of utmost and urgent importance.

While the official lip service paid on behalf of increased spending on R&D and higher education has been experiencing a veritable boom in the recent past, nothing short of fullheartedly following the Irish example of taking government spending on education and R&D to or above the 3% of GDP level will do. The invaluable favour Ireland has made to the new EU members is that they can follow the simple yet powerful advice dispensed by former General Electric CEO and management icon Jack Welch on a recent visit to Central Europe, which was: “If you see something that works well elsewhere - copy, copy, copy!!!”

If the governments in Central and Eastern Europe chose to follow the Irish example and Jack Welch’s advice, in the hopefully not too distant future the TOP 1000 COMPANIES OF CENTRAL EUROPE ranking may feature internationally established players in aerospace, high-precision engineering, biotechnology, software or nanotechnology. A lack of brains in Central Europe will not be at fault if this vision remains one.

The 4th annual ranking “The 2003 EVA^TM Ranking Czech Republic” confirmed the top companies from previous years.

The 2003 EVA™ Ranking Czech Republic presents the 100 most profitable Czech companies according to their Economic Value Added (EVA™). EVA, the economic profit attributable to shareholders after the cost of all capital has been covered, is an unambiguous measure for the true profitability and value creation by company management. This year 1,934 Czech companies were included in the preparation of the ranking.

In 2003 the first four ranks remained unchanged. Eurotel Praha remained the most profitable company in 2003, followed by Philip Morris ČR and Transgas as well as its competitor T-Mobile. The newcomer among the top five was steel maker ISPAT NOVÁ HUŤ.

Partners of the project:

"The 2003 EVA™ Ranking Czech Republic" is prepared and published by CENTRAL EUROPEAN CAPITAL CZ, s.r.o. in cooperation with Česká kapitálová informační agentura, a.s. and Profit, a leading Czech business weekly magazine.

The study was published in cooperation with the project’s exclusive media partner, the leading Czech business and finance weekly EKONOM.

For more information please contact Georg Hotar on Tel: +420-221 628 151 or by Email georg@ce-capital.com.

Z hlediska nárůstu EVA v meziročním srovnání dosáhl nejlepších výsledků Transgas, a.s., který zvýšil EVA o 1,86 mld. Kč. Následují NOVÁ HUŤ, a.s. nárůstem o 1,36 mld. Kč a Eurotel Praha, spol. s r.o.
o 1,19 mld. Kč.

Za rok 2001 bylo v žebříčku dle EVA^™ hodnoceno 1 300 společností působících v České republice, zatímco v loňském roce to bylo pouze 255 společností. Do studie jsou zařazeny společnosti odpovídající přesně definovaným kritériím výběru, nejedná se tedy o tzv. “anketový žebříček”, kde je vyhodnocen každý, kdo se přihlásí. „Nezávislá hodnocení, rankingy a žebříčky mají velký význam všude tam, kde je nutno rozhodovat o investování a poskytování finančních prostředků“ řekla Dagmar Vránová z agentury ČEKIA. „I když v České  republice informační otevřenost společností rok od roku klesá, dostupnost finančních dat se zhoršila např. na základě novelizovaného zákona o účetnictví  a některé firmy odmítají účetní ukazatele do podobných projektů poskytovat, podařilo se nám shromáždit poměrně rozsáhlou a reprezentativní databázi finančních ukazatelů.“

Partneři projektu

“The 2001 EVA^™ Ranking Czech Republic” byl vypracován a publikován společností Central European Capital CZ, s.r.o. ve spolupráci s Českou kapitálovou informační agenturou, a.s., nadnárodní poradenskou společností Stern Stewart & Co. a časopisem €NTERPRISE.

Central European Capital CZ, s.r.o. je finančně a strategicky poradenská společnost poskytující služby v oblastech Entrepreneurial Finance, Corporate Finance, Finance Research a Corporate Communications pro malé a střední podniky, korporace a municipality v rámci střední Evropy.

Česká kapitálová informační agentura, a.s. (ČEKIA) se specializuje na poskytování informací pro investiční rozhodování. Kromě profesionálních databázových informačních produktů ARIADNA, SOFIA  a MAGNUS provozuje server I-POINT zaměřený na oblast investování a organizuje společně s partnery celoroční cyklus vzdělávacích a osvětových akcí Fit pro investice. Více informací o produktech   a službách společnosti ČEKIA je k dispozici na www.cekia.cz.

Stern Stewart & Co. je globálně působící poradenská firma v oblasti managementu se zaměřením na tvorbu a management firemní hodnoty a je autorem konceptu Economic Value Added, který se stal klíčovým nástrojem pro stanovení firemních cílů a měření výkonností, komunikaci s investory, stanovení strategií, alokaci kapitálu, hodnocení akvizicí a nastavení bonusových systémů, které motivují manažery přemýšlet a jednat jako majitele firmy. Více informací o společnosti Stern Stewart & Co. získáte na internetových stránkách www.sternstewart.com.

Časopis €NTERPRISE je měsíčník zaměřený na potřeby rozvoje malých a středních podniků ve všech 14 krajích České republiky. Formou podrobných profilů společností a jejich managementu, článků o strategiích managementu, regionálních zpráv a mnoha dalších rubrik, poskytuje €NTERPRISE svým čtenářům nástroje k budoucímu úspěchu. Více informací o časopisu €NTERPRISE získáte na www.ent-mag.com.

Výsledky jsou publikovány na www.ce-capital.com,  www.ranking.cz,  www.ipoint.cz, v listopadovém čísle časopisu €NTERPRISE (www.ent-mag.com), 46. čísle časopisu EKONOM (www.ekonom.cz) stejně jako v informační databázi ARIADNA.

Pro jakékoliv otázky ohledně “The 2001 EVA^™ Ranking Czech Republic” nebo metodice použité pro tento žebříček kontaktujte prosím:

Marian Mikuš                                                                                    
Tel: +420 221 628 161               
Fax: +420 221 628 150                                               
Email: marian@ce-capital.com                                           

The FINANCING INNOVATIVE ENTERPRISE Conference intends to provide participants with an overview of the theory and best practice of corporate finance with a particular focus on equity financing throughout a company’s life cycle, all the way from start-up financing while exploring the potential of technology licensing to venture capital financing and all the way to initial public offerings.

In cooperation with the Controller-Institut Praha, Central European Capital holds seminars about Economic Value Added - EVA™. The all-day seminar will take place on 25 June 2002 in the Hotel Novotel in Prague. Please register electronically by filling in the registration form on the Controller-Institut Praha web site www.controlling.cz or via faxing the following registration form: 

 EVA™ is becoming an ever more popular measure for performance and as the cornerstone of value-based management systems not only in the US, but also increasingly in Europe. More than any other measure, Economic Value Added provides a clear and consistent tool to be used for setting goals and measuring performance, evaluating strategies, allocating capital, valuing acquisitions and paying for performance. Under the EVA™ bonus system employees are paid in accordance with their attained results, while the system operates without upper or lower bonus limits, hence stimulating employees to higher performance. Companies adopting EVA™ are focused on growing the value of their business rather than managing their accounting earnings.

The seminar also includes a case study of the Model Group, which is an early adopter of an EVA™-based management system in the Czech Republic. The continuing strong interest in EVA™ after almost 200 attendees in to date seven seminars in Prague, Brno and Bratislava have encouraged us to schedule another seminar before the summer break.

For more information about other planned EVA™ seminars please do not hesitate to contact us on Phone +420-221628159 or E-mail eva@ce-capital.com.

The 2000 EVA Ranking Czech Republic

Central European Capital has published the first ranking of Czech companies based on EVA™ in cooperation with Stern Stewart & Co., the authors of the EVA™ methodology, and Česká kapitálová informační agentura, the leading provider of financial and capital markets related information in the Czech Republic, in the form of "The 2000 EVA™ Ranking Czech Republic". The study followed Stern Stewart's tradition of rankings according to Economic Value Added (EVA™) and the derived Market Value Added (MVA) value of companies in 16 countries (for the financial year 2000) and has been the first of its kind in Central and Eastern Europe.

To find out more about Stern Stewart & Co.'s EVA™ rankings globally, please go to:

www.sternstewart.com/performance/overview.shtml

For more information about "The 2000 EVA™ Ranking Czech Republic" or for a hard copy version please contact us on +420-221628161 or E-mail eva@ce-capital.com.