Material and Methods

For the analysis the official Top500 list for Central and Eastern Europe, CEE countries prepared by Deloitte were downloaded and extended with statements’ data uploaded to the government’s official website. This meant the extension by downloading the official Statutory annual statements, Balance and Income statements and all data gathered into one file and converted into Million Euros based on the official rates published by the Hungarian National Bank.

Afterwards, data consistency check was conducted and compared with the common data in the Deloitte list (income, revenue), corrections done if necessary. For example, this meant in some cases a change from the single statements to the consolidated ones.

For the analysis the last fully available year’s data were taken. By the time of the research, during the fall of 2016, not all statements were uploaded belonging to the fiscal year 2015, therefore the fiscal year of 2014 had to be taken as basis.

Table 1.: Companies with Hungarian ownership

Ranking Company name Industry

2 MOL Energy&Resources

32 MVM Magyar Villamos Művek ZRt. Energy&Resources 162 Richter Gedeon LifeSciences&HealthCare

345 Magyar Posta PublicSector

137 Tiszai Vegyi Kombinát Manufacturing

192 Szerencsejáték Consumer Business and Transportation

279 KITE Consumer Business and Transportation

262 Hungaropharma LifeSciences&HealthCare

282 Moltrade-Mineralimpex Energy&Resources

87 MVM Partner Energy&Resources

Source: own construction based on Deloitte (2015)

168

Table 2.: Companies with foreign ownership

Ranking Company name Industry

16 GE Infrastructure CE Europe Holding Manufacturing

7 Audi Hungária Manufacturing

70 Magyar Telekom Technology,Media&Telecommunications 143 WIZZ Air Hungary Consumer Business and Transportation

47 Mercedes-Benz Manufacturing Hungary Manufacturing

210 Chinoin (with Sanofi-aventis) LifeSciences&HealthCare

106 Suzuki Manufacturing

234 TEVA Magyarország LifeSciences&HealthCare

61 Samsung Electronics Magyar Consumer Business and Transportation 135 Robert Bosch Elektronika Gyártó Manufacturing

366 Alcoa-Köfém Manufacturing

303 Budapesti Elektromos Művek Energy&Resources

112 BorsodChem Manufacturing

191 ISD Dunaferr Manufacturing

140 SPAR Magyarország Consumer Business and Transportation 111 Flextronics Hungary Technology Media&Telecommunications 286 Lear Corporation Hungary. Manufacturing

343 LuK Savaria Manufacturing

358 SE-CEE Schneider Electric Energy&Resources

294 Lidl Magyarország Consumer Business and Transportation 317 Continental Automotive Hungary. Manufacturing

380 Delphi Hungary Manufacturing

260 Michelin Hungária Manufacturing

280 Robert Bosch Energy and Body Systems Manufacturing

232 Electrolux Lehel Hűtőgépgyár Consumer Business and Transportation 219 Jabil Circuit Magyarország Manufacturing

222 Auchan Magyarország Consumer Business and Transportation 91 E.ON Földgáz Trade Energy&Resources

309 Phoenix Pharma Hungary. LifeSciences&HealthCare 224 PCE Paragon Solutions Manufacturing

228 E.ON Energiaszolgáltató Energy&Resources

318 Porsche Hungária Manufacturing

382 Sanofi-Aventis Hungary. LifeSciences&HealthCare 248 Shell Hungary Kereskedelmi Energy&Resources

93 E.ON Hungária Energy&Resources

221 OMV Hungária Ásványolaj Energy&Resources

368 Philip Morris Magyarország Consumer Business and Transportation

169

145 PANRUSGÁZ Energy&Resources

76 TESCO-GLOBAL Áruházak Consumer Business and Transportation 336 E.ON Energiaszolgáltató Energy&Resources

Source: own construction based on Deloitte (2015)

From the above tables it can be stated that there is a dominance of foreign own companies between the top 50, there are 40 companies with foreign ownership and and only 10 with Hungarian ownership. If we have a closer look at the industrial distribution there are 4 companies in Energy & Resources, 2 consumer business and Transportation and 2 in life sciences & HealthCare for Hungarian owned companies. The foreign owned companies are mainly active in the manufacturing industry, there are 17 enterprises represented there. The others are active in the Energy & Resources with 9 and in the Consumer Business and Transportation areas with 8 companies.

A summary can be seen on the first figure, where it can be observed that no foreign owned company is operating in the public sector, and no domestic owned company in the Technology, Media & Telecommunications sector. The foreign owned companies are dominating in the manufacturing industry not only compared to the domestic owned companies, but also to other industries as well: 42,5% of foreign owned companies is operating in this sector.

Figure 1.: Industrial distribution of foreign and Hungarian owned companies

Source: own construction based on Deloitte (2015) 4. Size

Having a closer look at the size of the companies it can be analyzed through the balance sheet totals or through the number of employees. Figure 2 shows the results for the balance sheet totals. Based on that it is immediately catches the eye, that the foreign owned companies are much bigger – except for the Energy&Resources, where the biggest company, MOL is. The biggest difference is in the manufacturing industry, where the totals make up to 22581,82

170

million Euros. The second biggest industry is the Consumer Business and Transportation with 5119,94, while the third is Life Sciences & HealthCare 4551,05 million, Technology,Media&

Telecommunications 4485,88 million euros. The domestic owned companies are bigger in the Energy&Resources sector with 5061,23 million euros, in Life Sciences & HealthCare 2456,79 million euros. The only sector where Hungarian companies are alone is the PublicSector with 612,87 million euros balance sheet total.

Figure 2.: Size according to Balance Sheet Total

Source: own construction based on Deloitte (2015)

If we have a look at the employee numbers, we can state that all together 218584,75 people are employed by these companies around one third (83623) of which is by domestic owned and the majority (134961,75) by foreign owned companies.

171

Figure 3.: Employee numbers

Source: own construction based on Deloitte (2015)

On Figure 3 we can see that generally the foreign owned companies are much larger – except in the energy sector where MOL and MVM on their own give work to 35798 people. In the Public Sector, the Magyar Posta alone employs 31177 people, while Life Sciences &

HealthCare is third with 12903 workers. There are no foreign owned companies represented in the Public Sector (ELMŰ is in energy sector, owned by: RWE Beteiligungsgesellschaft mbH), the Manufacturing industry has 60749,75 workers Consumer Business and Transportation 49566, which are several times more than the workers employed by the domestic owned companies in the corresponding sectors.