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Mostogradnja AD, in Restructuring
Short Profile
April, 2013
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Contents
1. THE PROPOSED TRANSACTION AND THE SALE PROCESS ................................................................. 2
2. ECONOMIC REFORMS IN SERBIA ..................................................................................................... 2
3. THE CONSTRUCTION INDUSTRY IN SERBIA ...................................................................................... 4
4. BRIEF OVERVIEW OF THE COMPANY ............................................................................................... 5
THE COMPANY’S CORE BUSINESS ACTIVITIES INCLUDE THE FOLLOWING: ..................................................................... 5
PROJECTS THAT ARE CURRENTLY IN PROGRESS ....................................................................................................... 7
PROJECTS EXPECTED IN 2013-2017 PERIOD ........................................................................................................ 8
ORGANIZATIONAL STRUCTURE ........................................................................................................................... 9
BUSINESS UNITS ............................................................................................................................................. 9
EXECUTION CAPACITY .................................................................................................................................... 11
EXPERIENCED STAFF ...................................................................................................................................... 11
MARKET POSITION ........................................................................................................................................ 13
5. OPERATING AND FINANCIAL HIGHLIGHTS ..................................................................................... 14
CONTACT .................................................................................................................................................... 16
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1. The Proposed Transaction and the Sale Process
Virtu Partners d.o.o. has been engaged as the financial advisor in the sale process of the Civil
Engineering company «Mostogradnja» AD, in Restructuring, Belgrade (further referred to as
“the Company“). In case of successful privatization, an investor can acquire majority stake of
53,585%. This document should provide basic information about the Company to potential
investors. The current ownership structure of the Company has been included in the table below:
Name of shareholderNumber of
Shares% of total
Republic of Serbia 100,140 32.357%
Mostogradnja Consortium d.o.o. 52,508 16.966%
Share fund of the Republic of Serbia 49,144 15.879%
PIO – Serbian Pension Fund 16,653 5.381%
Remaining small shareholders 91,042 29.417%
Total: 309,487 100%
Source: Central Securities Depository and Clearing House
The prospective investor/s fulfilling the qualification criteria as defined by Public Invitation will be
allowed to purchase the relevant tender documentation and execute a detailed analysis of the
Company (due diligence).
2. Economic reforms in Serbia
Over recent years Serbia has continued showing potential for substantial development receiving
increased interest from foreign investors. Leading foreign investors are reputable companies such
as Telenor, Philip Morris, Intesa Sanpaolo, Molson Coors, Coca Cola, Fiat and many others. In
2005 the country’s efforts were praised by the World Bank who declared Serbia a leading country
in implementing policy reform and attracting foreign direct investment (FDI). Shortly thereafter the
Financial Times’ FDI Magazine declared the country’s capital, Belgrade, “City of the Future” in
Southern Europe 2006/07.
The process of European Union accession is rapidly moving forward. In March 2012 Serbia
received a full candidate status and it is currently waiting to get a starting date for accession talks.
In addition, Serbia is expected to join the World Trade Organization upcoming period.
As a participant in the Central European Free Trade Agreement (CEFTA) Serbia has preferential
access to EU markets. In addition, the country benefits from a free trade agreement established
with Russia which provides a unique trading position in the region.
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Selected macroeconomic
indicators2005 2006 2007 2008 2009 2010 2011 2012 2013e 2014e 2014e
GDP, real growth (%) 5.4 3.6 5.4 3.8 (3.5) 1.0 1.6 (1.7) 2.0 3.5 4.0
Unemployment rate (%) 20.8 20.9 18.1 14.0 16.6 19.2 23.7 22.4 26.1 25.2 23.8
Inflation rate/CPI growth (%) / / 11.0 8.6 6.6 10.3 7.0 12.2 5.5 5.0 4.5
FDI, m EUR 1,250 3,323 1,821 1,824 1,373 860 1,827 231.9 / / /
Note: e – Estimate. GDP-Gross Domestic Product, FDI Foreign Direct Investment
Source: Ministry of Finance RS and Statistical office of RS,
At 15% Serbia has one of the lowest corporate income tax rates in the region. After political
changes in 2000 Serbian government started implementation of reforms in business formation,
bankruptcy law and banking sector. The country’s economy showed positive effects of these
reforms. Until the close of 2008 real GDP was often above 5%. In 2009 Serbia recorded a decline
in economic output (GDP) of 3.5% as a consequence of the global financial crisis and its direct
effect on Serbian businesses. Luckily, the country’s economy is recovering and Ministry of
finance expects improvement of economic activity in following years.
In addition to consistent foreign direct
investment and the benefit of CEFTA,
Serbia is strategically located on the
borders of the EU, with Hungary
neighboring its borders in the north and
Romania and Bulgaria to the east. Standing
on the most important transport route (Pan
European Corridors No. 10 and No. 7)
which connects Europe and Asia via the
central part of the Balkan Peninsula, Serbia
has and will continue to benefit from
substantial trade opportunities.
Serbia’s continued progress towards European integration can be expected to create additional
opportunities for micro and macroeconomic growth in the immediate future. Status of full
candidate for EU membership will encourage further reform and facilitate increased synergies
within regional markets while providing a platform for the revival of Mostogradnja’s operations at
the regional level.
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3. The Construction Industry in Serbia
Due to inadequate investment in road maintenance and reconstruction at the end of the 90’s, the
current condition of the Serbian transport network remains substandard. Developed OECD
countries annually spend between €10,000 and €30,000 per kilometer of road for maintenance;
while Serbia invested less than €500 per kilometer on average at the beginning of 2000’s.
Due to increase in foreign direct investment, business development and a bolstering of regional
transport requirements Serbia’s civil engineering sector had been rapidly growing until 2009. After
decline in the first two years of economic crisis the sector has quickly recovered which is
confirmed by 2011 figures.
Value in '000 EUR 2005 2006 2007 2008 2009 2010 2011*
Civil Engineering 670,239 942,305 1,246,610 1,342,857 925,600 891,661 1,166,885
Annual Change (in %) 5% 41% 32% 8% -31% -4% 31%
Transport Infrastructure 504,687 696,050 822,689 883,874 594,850 585,490 719,566
Annual Change (in %) 11% 38% 18% 7% -33% -2% 23%
*Preliminary data
Source: Serbian Statistical Office, Statistical yearbook
The reconstruction of the Belgrade’s traffic infrastructure, construction of the Belgrade inner and
outer ring roads, construction of “Ada” bridge with adjoining roads, reconstruction of Belgrade’s
“Gazela” bridge, construction of “Beska” bridge, finalization of the European Routes and road and
rail corridors as well as additional municipal investment projects are just some of the larger
recently finished projects or projects currently underway.
This historical lack of investment in infrastructure created needs for substantial investments, and
therefore the opportunity for construction companies. That was one of the reasons why numerous
international construction companies have entered the Serbian market. The major players active
in Serbia include: Strabag, Porr, Alpine and Vinci. By entering the Serbian market these
companies have become competitors to the larger domestic firms such as Mostogradnja,
Energoprojekt, Putevi Užice, Ratko Mitrovic and Nibens Group. However, the entry of foreign
players has not posed a major threat to Mostogradnja. International engineering and construction
companies working in Serbia have recognized the value of experience held by Mostogradnja and
often engaged the Company as a strategic partner. This is evidenced by the fact that
Mostogradnja has many times been engaged by foreign construction companies for projects
executed in Serbia requiring the construction and/or maintenance of bridges or various other
complex structures (either as a subcontractor or via the formation of a Joint Venture).
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The main investors responsible for further infrastructure development throughout Serbia remain
the state and local authorities including state institutions such as the State Controlled Company
„Putevi Srbije,” the Ministry of Transport, and various local municipalities, all of whom are
commonly supported by financial institutions such as the EBRD, EAR and EIB.
The current condition of Serbia’s domestic infrastructure provides substantial opportunities to a
company such as Mostogradnja. Serbian government secured funds in the amount EUR 1.2
billion just for Corridor X road construction, while the total value of the works on the Serbia’s
highway network is estimated at EUR 2.9 billion. Estimated value of investment for the railway
Corridor X is even greater and totals to EUR 4.6 billion. An important share of the total would be
spent on highway and railroad bridges construction and rehabilitation.
Apart from Corridor X related projects it should mention other important projects which are
ongoing or announced for the upcoming years: construction of “Žeželj” bridge in Novi Sad,
complete rehabilitation of “Pančevački” bridge in Belgrade, activities on construction of highway
Belgrade – Požega, activities in relation with construction of Belgrade bridges and adjoining
roads, construction of Belgrade subway etc.
Each of the above mentioned projects are directly related to Mostogradnja’s core business and
could provide substantial revenue in the future.
4. Brief Overview of the Company
GP "Mostogradnja" AD Belgrade was founded in 1945 and represents one of the leaders in the
field of construction on the Serbian market with a respected brand throughout the former
Yugoslavia and a long tradition in the industry spanning more than 65 years.
The Company’s core business activities include the following:
– Design of all types of engineering structures
– Construction of concrete and steel bridges
– Construction of concrete and steel engineering structures for different purposes
– Construction of steel storage tanks ranging from 500 m3 to 60,000 m3 with underground
and above-ground pipelines and connection facilities
– Design and installation of all types of expansion joints of steel and rubber
– Various types of foundation laying on land and underwater water including large-diameter
bore hole excavation and filling
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– The construction of hydraulic structures for water supply:
– Excavation for the purification of river water,
– Water intake structures utilizing "Reny" horizontal drain and pump technology
– Pump/Filter station construction and installation
– Water Tower construction and installation
– Construction of sewage treatment plants and water pumping stations
– The design of rehabilitation works on damaged bridges and other engineering structures
– Carrying out of rehabilitation and maintenance works for bridges and other engineering
objects
– Quality control of production and testing of construction materials in the Company’s
laboratory, accredited by “SAT SERBIA”
All these tasks can be performed by Mostogradnja on the principle of "turnkey" delivery.
Mostogradnja has built over 2,230 bridges, total length of 250 kilometers. The most notable
bridges include the highway bridge to St. Marco-island of Krk, with an arch span of 390m (a world
record), Sloboda suspension bridge across the Danube in the city of Novi Sad, with a span of
351m (also a world record holder), the railway bridge "Mala Rijeka" which is the highest bridge in
Europe with a height of 201m and the bridge over the Danube river at Beska with its main span of
210m (a European record for reinforced concrete beam bridges).
Krk Bridge, Croatia
In addition to various achievements in span construction over the years Mostogradnja has
installed more than 250 kilometers of canalization and sewage collection lines, constructed more
than 300 multifunctional halls, more than 15 kilometers of steel antennas and nearly 800 steel
reservoirs with a total volume in excess of 2.3 million m3 and manufactured expansion joints and
bearings which continue to dominate the Serbian civil engineering market.
Mostogradnja is the first civil engineering company in Serbia with the international certificate for
quality management system in accordance with the standard SRPS ISO 9001 implemented in
1997 which is regularly recertified. The Company possesses the certificate for integrated
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management system: for quality management system according to SRPS ISO 9001:2008,
environmental protection management system according to SRPS ISO 14001:2005 and
occupational health and safety management system according to SRPS OHSAS 18001:2008.
Mostogradnja also has international certificates for welding of metal by melting in accordance with
the standards DIN EN ISO 3834-2 and DIN 18800-7:2002-09 for welding of steel structures, the
Class E. Within the Company there is also the Testing laboratory which is independent from the
production and certified in accordance with SRPS ISO/IEC 17025:2006 by the Accreditation Body
of Serbia.
Projects that are currently in progress
Out of large-scale infrastructure projects which are currently carried out by Mostogradnja the
following should especially be pointed out: complete reconstruction of old bridge across Danube
nearby Beška, works on construction of river pillar and assembly of steel construction for Žeželj”
bridge across Danube in Novi Sad and an exclusive engagement of Mostogradnja on complete
maintenance and rehabilitation of bridges on main roads in Serbia. Also, works on rehabilitation
of dozens of other bridges on other roads in Serbia are currently under way. Among the important
works in progress is also completion of rehabilitation of tanks with total volume of 60,000m3 for
Republic Directorate for Commodity Reserves and NIS-Oil Industry of Serbia in Smederevo.
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Projects expected in 2013-2017 period
Bridge constructions in Serbia (in 000 EUR)
Source Estimated value Mostogradnja Total
Purchaser/Investor Project Status of funds of total works 2013 2014 2015 2016 2017 2013-2017
Railway Corridor X
Railway Valjevo - LoznicaFinancing negotiation in progress 560,000
For bridges:
58,000 EUR 5,000 EUR 7,000 EUR 10,000 EUR 15,000 EUR 37,000
Public Enterprise Roads
of SerbiaBelgrade outer ring road
Construction of bridge across Sava
river near Ostruznica
EBRD/EIB or state
loan 30,000 EUR 8,000 EUR 18,000 EUR 4,000 EUR 30,000
Belgrade Land
Development Public
Agency
Reconstruction of "Pancevacki" bridge (II
stage)
Funds of Belgrade
Land Development
Public Agency
32,000 EUR 1,500 EUR 6,000 EUR 3,000 EUR 10,500
Public Enterprise Roads
of SerbiaRehabilitation and repairment of bridges
Extension of agreement for
maintenance of bridges
Public Enterprise
"Roads of Serbia" 30,000 EUR 4,000 EUR 4,500 EUR 4,500 EUR 4,500 EUR 4,500 EUR 22,000
Public Enterprise Roads
of Serbia
Objects on located highway Beograd - Požega
E-763
State loan of
Azerbaijan 275,000 EUR 6,000 EUR 6,000 EUR 12,000
Republic of Serbia/City of
Novi SadRebuilding of destroyed "Zezelj" bridge
Negotiations with main contractor in
progress
European Commission,
Autonomous Province
of Vojvodina and city of
Novi Sad
45,000 EUR 8,000 EUR 4,000 EUR 12,000
Public Enterprise Roads
of Serbia
Serbian Railways JSC
Road and railway bridge across Danube near
Vinca
Project design completed (Steel
consruction) Loan 100,000 EUR 5,000 EUR 15,000 EUR 10,500 EUR 30,500
Belgrade Land
Development Public
Agency
Road bridge across Danube near Ada Huja
Feasibility study in preparation
(Steel construction)Donation/
Loan 65,000 EUR 9,000 EUR 15,000 EUR 24,000
Public Enterprise Roads
of Serbia
Bridges located on road section Lot 1
(Grdelica - Caricina valley)
Signing of agreement with main
contractor expectedLoan 16,700 EUR 4,700 EUR 6,000 EUR 6,000 EUR 16,700
Public Enterprise Roads
of Serbia
Bridges located on road section Lot 2
(Grdelica - Caricina valley)
Signing of agreement with main
contractor expectedLoan 21,000 EUR 3,000 EUR 9,000 EUR 9,000 EUR 21,000
Autonomous Province of
Vojvodina and city of Novi
Sad
Road bridge across Danube near Petrovaradin Project design in progress Loan 35,000 EUR 6,000 EUR 4,000 EUR 10,000
Serbian Railways JSCReconstruction of railway "Beograd-Bar"
(section in Serbia)Project design in progress Loan 28,000 EUR 5,000 EUR 5,000 EUR 12,500 EUR 5,500 EUR 28,000
Total EUR 34,200 EUR 65,500 EUR 58,500 EUR 60,000 EUR 35,500 EUR 253,700
Bridge constructions abroad (in 000 EUR)
Source Estimated value Mostogradnja Total
Purchaser/Investor Project Status of funds of total works 2013 2014 2015 2016 2017 2013-2017
Krasnoyarsk area,
RussiaRoad bridge across Yenisei river Tender in 2013 expected 50,000 EUR 9,500 EUR 18,000 EUR 12,500 EUR 40,000
Bridges in Russia
(European part)Bridges on highway Moskva-Petrovgrad Construction in progress 18,500 EUR 4,000 EUR 5,000 EUR 9,500 EUR 18,500
Bridges in Russia
(Moscow)
Reconstruction of bridge constructions in
MoscowNegotiations in progress 10,000 EUR 2,500 EUR 5,000 EUR 7,500
Total EUR - EUR 16,000 EUR 28,000 EUR 22,000 EUR - EUR 66,000
Other Constructions (in 000 EUR)
Source Estimated value Mostogradnja Total
Purchaser/Investor Project Status of funds of total works 2013 2014 2015 2016 2017 2013-2017
EPSDesulphurization project of thermal-power plant
Nikola Tesla ATender u 2013 9,800 EUR 2,500 EUR 7,300 EUR 9,800
EPS / Private investors Wind parks located in Serbia Predkvalifikacija završena 17,200 EUR 4,000 EUR 5,000 EUR 8,200 EUR 17,200
Total EUR 2,500 EUR 11,300 EUR 5,000 EUR 8,200 EUR - EUR 27,000
TOTAL EUR 36,700 EUR 92,800 EUR 91,500 EUR 90,200 EUR 35,500 EUR 346,700
Estimated value of Mostogradnja's works
Estimated value of Mostogradnja's works
Estimated value of Mostogradnja's works
EBRD/EIB loan and
NIP (National
Investment Plan)
Serbian Railways JSC
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Organizational structure
Board of Directors
Executive Board
Mostogradnja Engineering
LTD Podgorica
CEO
Technical ManagerAdvisor to CEO
Legal and General
Affairs Dept.
Independent Dept.
for Work Safety
Financial Dept.
IT Dept.
Design Dept. BU Belgrade
Marketing Dept.
Technology and R&D
Dept.
Construction Dept.
Commercial
Operation Dept.
BU Batajnica
BU Novi Sad
BU Mechanization
BU Catering
Quality System
Bureau
Quality control
Bureau
Laboratory
Assembly
Business Units
Mostogradnja is organized into various Business Units located throughout Serbia. Each individual
location operates as an independent profit center with the Company’s administrative office
managing large projects and distributing various resources among the business units as deemed
necessary. The constant communication and cooperation between each of the business units and
administration is a major factor in Mostogradnja’s ability to execute complex tasks effectively
throughout the country.
Administration:
Responsible for all business units as well as
organization of planning, design and execution
of all major projects; The General Manager,
Administrative departments such as Legal,
Marketing, Quality Control and Finance are all
based at this location.
Mechanization:
Responsible for large machinery which it loans
to other profit centers upon request; engages in
procurement, regular and investment
maintenance of heavy machinery, equipment
and tools.
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Batajnica: Steel construction facility
Work center responsible for the manufacturing
and assembly of all types of steel structures;
construction and assembly of all types of steel-
made tanks and pipelines; construction of steel
bearings and expansion joints; application of
anti-corrosion protection of steel structures;
special mechanical treatment for various
heavy-machinery;
Belgrade:
Responsible for construction, repair and
maintenance of new concrete bridges;
construction of concrete-based objects and
industrial facilities; various types of foundation
systems; leveling, cutting and curling of
concrete and iron; construction of various
facilities. The business unit "Belgrade" also
manages the Company’s regional center in
Doljevac which is responsible for activities
executed in southern Serbia.
Novi Sad:
Responsible for construction repair and
maintenance of all types of concrete bridges;
construction of various facilities for sewage
systems and pipelines; manufacturing of small
items made of concrete and steel;
manufacturing and delivery of concrete. The
business activities of this business unit are
related primarily to the region of Vojvodina.
Mostogradnja Engineering, Podgorica
Mostogradnja Engineering is the daughter
company of Mostogradnja located in
Montenegro. The Company has 19 in staff
responsible for the management and
realization of all construction projects within the
territory. While managed by Mostogradnja’s
headquarters, Mostogradnja Engineering
Podgorica remains an independent company.
Catering:
Responsible for the planning, organization and
coordination of activities related to housing and
nourishment of the employees.
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Execution Capacity
Mostogradnja is known for its immense experience, substantial execution capacity in the field of
complex structures, bridges, antennas, and steel constructions, and management of complex
projects from initiation to “turn-key” delivery.
Experienced on-site staff in combination with the capacity to produce complex steel and concrete
structures at Batajnica allow for design, preparation, installation and finalization of steel and
concrete construction works of all forms with a minimal reliance on foreign suppliers and sub-
contractors.
Mostogradnja’s steel production facility at Batajnica with an annual production capacity of more
than 10,000 tons sets Mostogradnja apart from a typical civil engineering company. In house
production and testing of steel materials required for bridge construction has provided for reduced
execution costs and allowed for direct as well as indirect participation in almost all major civil
engineering projects undertaken on the Serbian market. In addition the Company has been able
to generate substantial revenues via production of steel reservoirs, bearings and expansion joints
domestically and abroad in parallel to its core operations.
The Company’s mechanical resources held and maintained at their Mechanization facility provide
the capacity for the construction of various objects and structures. In addition to standard crane,
truck and drilling machinery, Mostogradnja is capable of drilling and laying underwater
foundations with its own resources.
Mostogradnja’s execution strength has been recognized by a number of international firms
operating on the Serbian market and the Company has cooperated on numerous major bridge
constructions projects in Serbia to-date.
Experienced Staff
One of Mostogradnja’s greatest assets is the Company’s tenured and loyal staff with its
substantial number of experienced and licensed engineers. The strong loyalty among those within
the company has noticeably limited the ability of competition in forming quality teams of engineers
and project managers on the Serbian market.
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Staff by Qualification Staff by Tenure
Master degree 4 up to 10 169
University degree 111 11 to 20 149
College degree 29 21 to 30 298
Highly-qualified 16 31 to 40 357
High school 200 over 40 15
Qualified 377 Total 988
Semi-qualified 10
Elementary School 223
Unqualified 18
Total 988
As of 18 April 2013
Of 988 employed 117 of them are employed
on a temporary basis. Hiring part-time workers
is typical for the Company’s core business
and often relates to the seasonal changes in
staff requirements for ongoing projects.
As the only company in Serbia specializing in
bridge construction over the last 65 years,
Mostogradnja remains a symbol of
exceptional engineers and project managers.
The loyalty of employees and their dedication to escalate the Company's unique strengths make
it very difficult for competitors to establish operations with the necessary local know-how able to
execute complex projects on the Serbian market. Top management, despite the attractive offers
of foreign construction companies have remained with the Company in order to lead it through the
current projects, and upcoming engagements.
In addition to the strong foundation of technical engineers, the Company has retained a team of
project and site managers that are recognized on the domestic market for their ability to manage
the execution of large scale and complex projects rapidly and in a cost effective manner. Also, in
addition to engagement of a number of experienced individuals, Mostogradnja continues to invest
in young talents, being one of the first civil engineering firms sought after by young graduates of
the numerous Serbian engineering faculties.
Mostogradnja provides scholarships to the best students of Construction Engineering faculty in
Belgrade (major civil engineering). The Company also organizes trainings for scarce skills jobs
such as welders, carpenters, and shapers.
up to 10169
11 to 20149
21 to 30298
31 to 40357
over 4015
Staff by Tenure
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Market Position
Mostogradnja has embedded itself within the Serbian market building a strong reputation and
nurturing a tenured workforce capable of executing some of the most complex structures ever
realized in Southeast Europe. The Company’s experienced engineers and project managers
make Mostogradnja a unique and powerful company operating on the Serbian market.
As the largest company for the construction of bridges in the region, Mostogradnja provides a
unique opportunity and capable platform able to capitalize on the substantial growth within the
construction industry in Southeast Europe. In addition, Mostogradnja is currently establishing
subsidiary company in Russia which will improve its position on that market.
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5. Operating and Financial Highlights
Income Statement
000 EUR 2009 2010 2011 2012
Operating Revenues 11,142 16,099 36,229 14,691
Operating Expenses 14,308 18,236 32,606 17,741
Financial and other revenues 8,315 4,382 3,264 4,081
Financial and other expenses 3,449 2,113 5,228 1,006
Profit/(loss) before tax 1,700 133 1,660 25
Net Profit/(Loss) 1,842 133 1,660 25
Balance Sheet
000 EUR 31.12.2009 31.12.2010 31.12.2011 31.12.2012
Current assets 17,011 20,537 23,205 20,733
Inventory 7,099 10,216 12,623 11,410
Receivables 9,002 9,721 8,686 8,040
Other current assets 910 600 1,896 1,283
Non-current assets 17,920 15,680 14,788 12,699
Losses above equity 1,852 1,555 - -
TOTAL ASSETS 36,783 37,772 37,993 33,432
Equity - - 49 70
Short-term liabilities 33,452 35,111 36,003 24,396
Short-term financial liabilities 7,450 7,076 8,281 52
Operating liabilities 12,469 14,337 11,622 9,436
Other short-term liabilities 13,534 13,698 16,100 14,907
Long-term liabilities 3,038 2,395 1,672 8,719
Differed tax liabilities 293 266 268 247
TOTAL LIABILITIES + EQUITY 36,783 37,772 37,993 33,432
Reconstruction of Belgrade’s “Gazela” bridge and completion of “Obrenovac-Surčin“ bridge
executed in 2011 were the main revenue drivers resulting in the highest turnover in Companies
recent history of over EUR 36 million.
Financial liabilities in relation with Serbian Pension Fund and Serbian Development Fund in the
amount of EUR 7,624 thousand, are, according to the tenor terms, transferred from short-term
liabilities as were recorded in 2011 to long term financial liabilities in 2012.
By the number of decisions on write-off and by securing the funds for settlement of outstanding
social securities obligations, Serbian Government has significantly reduced Company’s debt. In
2011, there was an unconditional write-off of RSD 481 million (EUR 4.6 million FX rate as of 31
Dec 2011). In addition, after regularly settlement of liabilities towards Serbian Health Insurance
Fund, Mostogradnja qualified itself for additional write-off in amount of RSD 369 million (EUR
3.2).
15
In case of Company’s successful privatization receivables of state owned companies from
Mostogradnja could written-off.
16
Contact
Milan Milićević Nadežda Ćurčić
Managing Director Project Manager
Corporate Restructuring and Public
Tender Center
Virtu Partners doo Privatization Agency
Takovska 23-25 Terazije 23
Belgrade 11000, Serbia Belgrade 11000, Serbia
Tel. +381 11 333 0 555 Tel. +381 11 30 20 855
Fax. +381 11 333 0 566 Fax. +381 11 30 20 816
E-mail: [email protected] E-mail: [email protected]
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DISCLAIMER
This document has been prepared by Virtu Partners d.o.o. („Virtu Partners“). The sole purpose of
this document is to assist the recipient in deciding whether to proceed with a further investigation
of Mostogradnja, (“the Company”), its operating companies in Serbia and their respective
businesses and assets. This document is not intended to form the basis of any investment
decision or any decision to purchase the whole or any part of the Company. This document does
not constitute an offer or invitation to purchase the whole or any part of the Company and its
issue shall not be taken as any form of commitment to proceed with any transaction.
The information in this document, which is not comprehensive, has been prepared by Virtu
Partners on the basis of information supplied by Mostogradnja. Virtu Partners (or any of their
directors, officers, employees, agents, attorneys or advisers) are not making any explicit or
implicit statements or warranties in regards to the accuracy or completeness of this document or
any other written or oral information provided to the recipient, and hence, cannot be held
responsible for the same. In particular, no representation or warranty is given as to the
achievement or reasonableness of any projections, estimates or statements about the future or
prospects of the Company.
Virtu Partners has no obligations to provide the recipient with any additional information or to
update this document or any additional information or to correct any inaccuracies in this
document or any additional information, which may become apparent.
By accepting this document the recipient confirms that it is a person to whom the document may
be given without contravention of any unfulfilled registration requirements or other legal
restrictions in the jurisdiction in which they are situated. The recipient undertakes not to do
anything which might prejudice or have any effect on the compliance by Virtu Partners, or this
document (or its distribution), with all relevant laws and other requirements, or result in any legal
or other requirement or obligation arising in respect of Virtu Partners or this document, or as a
result of its distribution. Each person into whose possession this document comes must comply
with these requirements and all applicable legal and other requirements.
