Optina2 project contributed significantly to INA’s business results

Zagreb, July 26th – INA announced today results achieved through its optimization project called Optina 2. The achievements show that the Optina 2 project delivered since its inception late 2009 about HRK 1.1 billion in recurring EBIT improvements until Q1 2011 with the vast majority of HRK 740 million EBIT improvements delivered on the cost side.

Within the Optina 2 project initiatives are divided in two basic groups: cost saving initiatives and revenue improvement initiatives. All initiatives are controlled through a central program office which together with INA controlling measures the impact on INA’s profit and loss statement. Special attention within Optina 2 is coming from a dedicated Procurement Spend Optimization project which will deliver over HRK 250 million in savings by 2012. Other significant savings are coming from corporate functions (Finance, Corporate services and Corporate processes) as well as all business divisions (Exploration and Production, Refining and Marketing as well as Retail). Besides more than HRK 740 cost savings, revenue improvements in the amount of HRK 340 million are mostly coming from INA’s business divisions.

Optina 2 is led by a full-time team and supervises over 240 initiatives out of which 180 are already fully implemented. For the additional 60 initiatives which are currently in implementation a detailed activity-monitoring is in place to ensure full and timely delivery of preset targets.

Each initiative is managed as a separate project and has clearly defined and measurable goals. All these initiatives contribute to the optimization of INA’s financial performance with one final target – to turn INA into an even more competitive and efficient company.

“Optina 2 is a key tool for the INA’s business restructuring with the ultimate goal to improve our Company’s operational efficiency. Only with these efforts we can put INA back on the position where it belongs in the regional economy . More than 75 project managers are involved in delivering these goals and are coordinated by the Optina 2 project team. We are committed and persistent in achieving our planned goals and every day the team is trying to find additional room for new savings and more efficient business operations.” – said dr. Berislav Gašo, executive director for corporate services responsible for the Optina 2 project.Documents