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					                                      MONBAT AD


              INTERIM REPORT ON THE ACTIVITIES OF MONBAT AD DURING THE
                         THIRD QUARTER OF 2012 PURSUANT TO
                       ARTICLE 100O, PARAGRAPH 4, ITEM 2 OF LPOS


       The Board of Directors of MONBAT AD informs all present and future investors that the

information presented in this document was prepared with regard to the requirements of

Ordinance № 2 of the FSC. The document contains the whole information on the activities of

the Company for the period from 01.07.2012 to 30.09.2012. It is in the investors’ interest to

examine the presented information, the information under Appendix No 9 of Ordinance No 2 of

FSC, the interim financial statement for the same period as well as the additional information

pursuant to art. 33, para.1, item 6 of Ordinance № 2 of the FSC before taking a decision on

whether to invest in the securities of the company.

       THE FINANCIAL SUPERVISION COMMISSION DOES NOT BEAR RESPONSIBILITY FOR THE

                      CORRECTNESS OF THE PRESENTED INFORMATION.

       The persons who bear responsibility for damages incurred by untrue, misleading or

incomplete data in this information as of 30.09.2012 are:

       Atanas Bobokov – Chairperson of the Board of Directors
       Petar Petrov – Executive Director
       Ivan Karageorgiev – Member of the Board of Directors
       Plamen Bobokov – Member of the Board of Directors
       Stoyan Stalev – Member of the Board of Directors
       Alexander Chaushev – Member of the Board of Directors
       Nikolay Trenchev – Member of the Board of Directors
       Kamen Zahariev – Member of the Board of Directors
       Florian Huth – Member of the Board of Directors




                                                  1
1. IMPORTANT DEVELOPMENTS FOR MONBAT AD THAT OCCURRED DURING THE THIRD
QUARTER OF 2012 (01.07.2012 - 30.09.2012)

    Date                                       Developments
 25.09.2012   Monbat AD presented the following announcement:
              In August, 2012 Monbat Plc and Monbat Recycling EAD have generated
              consolidated net sales revenues in the amount of BGN 17 412 000 which
              represents a decrease of 4 % compared to the consolidated net sales revenues,
              generated by Monbat Plc and Monbat Recycling EAD in August 2011. The
              summarized data for the first eight months of 2012 show that Monbat Plc and
              Monbat Recycling EAD have generated consolidated net sales revenues in the
              amount of BGN 120 388 000 which represents a 10 % decrease compared to the
              consolidated net sales revenues, generated by Monbat Plc and Monbat
              Recycling EAD for the same period of 2011. The generated net sales revenues
              for the first eight months of 2012 in the amount of BGN 120 388 000 are
              allocated as follows:
                Production                            BGN 90 242 000
                Products                              BGN 9 828 000
                Services                              BGN 1 411 000
                Others, of which                      BGN 18 907 000
                - materials                           BGN 17 543 000
                - assets                              BGN 211 000
                - others                              BGN 1 153 000
              The generated consolidated profit before taxes of Monbat Plc and Monbat
              Recycling EAD for August, 2012 is BGN 1 092 000, which represents a profit
              decrease of 11 % compared to the consolidated profit, generated by Monbat
              Plc and Monbat Recycling EAD in August 2011. The summarized data for the
              first eight months of 2012 show that Monbat Plc and Monbat Recycling EAD
              have generated profit in the amount of BGN 7 254 000, which represents a
              profit decrease of 48 % compared to the consolidated profit, generated by
              Monbat Plc and Monbat Recycling EAD for the same period of 2011.
 04.09.2012   Monbat AD presented the following announcement:
              With the present we would like to announce that at the session of the Board of
              Directors of Monbat Plc, held on Sept. 4th, 2012 was approved a resolution for
              Peter Nikolov Bozadjiev to be assigned as a CFO of the company.Peter Bozadjiev
              graduated Business Administration from the University of Portsmouth, UK in
              1997 and holds a Diploma in Public Administration and Executive Management,
              Negotiation Analysis from the Civic Education Project, Central European
              University & Jale University. He has a considerable professional experience in
              the following spheres: business transformation management, corporate
              performance management, finance and strategic planning, project
              management. His professional experience includes taking positions such as
              Senior Manager at PwC, Bulgaria, Country Manager – business consultant at
              IBM, Bulgaria, Manager, Operational Restructuring at KPMG, Bulgaria and
              Senior Manager at PwC, Serbia.




                                            2
03.09.2012   Monbat AD presented the following announcement:
             In August 2012 MONBAT Plc has bought back 58 654 company’s own shares at
             the average price of BGN 4.90 per share. The total number of the own shares
             hold by the company by 31.08.2012 is 2 556 298 shares at the average price of
             BGN 5.95 per share.
29.08.2012   Monbat AD presented the following announcement:
             In August 2012 MONBAT Plc has bought back 58 654 company’s own shares at
             the average price of BGN 4.90 per share. The total number of the own shares
             hold by the company by 31.08.2012 is 2 556 298 shares at the average price of
             BGN 5.95 per share.
24.08.2012   Monbat AD presented the following announcement:
             In July, 2012 Monbat Plc and Monbat Recycling EAD have generated
             consolidated net sales revenues in the amount of BGN 13 301 000 which
             represents a decrease of 19.72 % compared to the consolidated net sales
             revenues, generated by Monbat Plc and Monbat Recycling EAD in July 2011. The
             summarized data for the first seven months of 2012 show that Monbat Plc and
             Monbat Recycling EAD have generated consolidated net sales revenues in the
             amount of BGN 102 976 000 which represents a 10.75 % decrease compared to
             the consolidated net sales revenues, generated by Monbat Plc and Monbat
             Recycling EAD for the same period of 2011. The generated net sales revenues
             for the first seven months of 2012 in the amount of BGN 102 976 000 are
             allocated as follows:
              Production                                BGN 77 189 000
              Products                                  BGN 8 124 000
              Services                                  BGN 1 175 000
              Others, of which                          BGN 16 488 000
              - materials                               BGN 15 159 000
              - assets                                  BGN 200 000
              - others                                  BGN 1 129 000
             The generated consolidated profit before taxes of Monbat Plc and Monbat
             Recycling EAD for July, 2012 is BGN 1 368 000, which represents a profit
             increase of 92.13 % compared to the consolidated profit, generated by Monbat
             Plc and Monbat Recycling EAD in July 2011. The summarized data for the first
             seven months of 2012 show that Monbat Plc and Monbat Recycling EAD have
             generated profit in the amount of BGN 6 162 000, which represents a profit
             decrease of 51.68 % compared to the consolidated profit, generated by Monbat
             Plc and Monbat Recycling EAD for the same period of 2011.
14.08.2012   Monbat AD presented the following announcement:
             With the present Monbat Plc would like to announce the end of the tenth buy
             back procedure of up to 1 % of the company’s registered capital or up to 390
             000 shares due to completion of the quantity of shares. The Board of Directors
             of Monbat Plc, Sofia, at its session, held on 14.08.2012, on the grounds of art.
             17 paragraphs 2 and 3 of the company’s Articles of Association with reference
             to art. 187b of the Commercial Act and on the grounds of art 111, paragraph 5
             of the Public Offering of Securities Act adopted a resolution for a new - eleventh
             buy back procedure of company’s own shares to be performed within the limits,



                                             3
             set up under the provision of art. 17 of the company’s Articles of Association,
             as follows:
             Number of shares liable to buy back under the current procedure – up to 2.00 %
             of the company’s registered capital or up to 780 000 shares.
             Minimum price for the buy back – BGN 4.50.
             Maximum price for the buy back – BGN 5.50.
             Initial term for the buy back – 15.08.2012.
             The announcements to FSC, BSE and the investors shall be made after the end
             of the stock exchange session, not later than the end of the business day,
             preceding the day of the buy back. Term for implementation of the buy back,
             including payment of the bought back shares – up to 180 calendar days as of
             15.08.2012. In the event of completion of the shares, namely – the company
             buys back up to 780 000 shares prior to the final term, the current buy back
             procedure shall be terminated as successfully implemented. In the event that,
             within the term under the first sentence the maximum number of shares has
             not been bought back, the Board of Directors, in its own judgment, may both
             extend the term with another 180 calendar days under respective application of
             the provision of the preceding sentence, or terminate the procedure
             notwithstanding the number of the bought back shares. Within the term of the
             current procedure, depending on the market conditions, the Board of Directors,
             in its own judgment, may change the minimum and maximum price for the buy
             back. In this case, the company shall inform the Financial Supervision
             Commission, Bulgarian Stock Exchange, the investors and the public, as the
             announcement shall be made after the end of the stock exchange session, not
             later that the end of the business day, preceding the day when the change in
             the minimum or maximum price of the buy back takes effect. Investment
             intermediary selected by the Board of Directors, which is given the order for the
             buy back – Benchmark Finance AD. Purpose of the buy back – increasing the
             liquidity of the company’s shares.
31.07.2012   Monbat AD presented the following announcement:
             In July 2012 MONBAT Plc has bought back 64 215 company’s own shares at the
             average price of BGN 4.81 per share. The total number of the own shares hold
             by the company by 31.07.2012 is 2 497 644 shares at the average price of BGN
             5.98 per share.
30.07.2012   Monbat AD presented q2 2012 individual report.
26.07.2012   Monbat AD presented the following announcement:
             With the present we would like to inform you that, with reference to the
             adopted decision of the General Assembly of Shareholders of MONBAT Plc, held
             on 25.06.2012, for distribution of dividends, the Board of Directors of the
             company, on its session, held on 25.07.2012, approved the following conditions
             for payments of the dividends based on the established overall amount of BGN
             6 300 000:
                  1. Gross amount of the dividend per one share – BGN 0.17228;
                  2. Net amount of the dividend per one share – BGN 0.16367 for
                      shareholders – physical persons;
                  3. Commercial bank, chosen to pay the dividends – Unicredit Bulbank AD;



                                            4
4. Method of payment of the dividend: To the shareholders, whose/which
   securities accounts are under Register A of the Central Depository
   /personal accounts/, the dividends will be paid through the branches of
   Unicredit Bulbank AD. To the shareholders, whose/which securities
   accounts are under Register B of the Central Depository /clients’ sub-
   accounts with the investment intermediary/, the dividends will be paid
   through the respective investment intermediary with the cooperation of
   Central Depository.
5. Initial date for payment of the dividend – 03.09.2012;
6. Final date for payment of the dividend – 03.12.2012;
7. After expiration of the final date for payment of the dividend, within the
   5-year period of prescription, all shareholders who/which had not
   receives their dividends for the year 2011 will have the right to receive
   their dividends from the company or through bank remittance after an
   explicit request, addressed to the company at its address of
   administration – 4, Golo Bardo Str, Sofia or to fax: +359 2 9882413.
   Dividends which have not been received and have not been asked for
   after expiration of the 5-year period of prescription shall be taken in the
   company’s Reserve Fund.
8. The Board of Directors of the company assigns the Executive Director of
   MONBAT Plc – Petar Petrov to sign the contract with Unicredit Bulbank
   AD regarding the distribution of dividends to the shareholders.




                            5
25.07.2012   Monbat AD presented the following announcement:
             In June, 2012 Monbat Plc and Monbat Recycling EAD have generated
             consolidated net incomes from sales to the amount of BGN 11 630 000 which
             represents a 30.26 % decrease compared to the consolidated net incomes from
             sales, generated by Monbat Plc and Monbat Recycling EAD in June 2011. The
             summarized data for the first six months of 2012 show that Monbat Plc and
             Monbat Recycling EAD have generated consolidated net incomes from sales to
             the amount of BGN 89 675 000 which represents a 9.24 % decrease compared
             to the consolidated net incomes from sales, generated by Monbat Plc and
             Monbat Recycling EAD for the same period of 2011.
             The generated net incomes from sales for the first six months of 2012 to the
             amount of BGN 89 675 000 are allocated as follows:
              Production                              BGN 66 689 000
              Products                                BGN 7 404 000
              Services                                BGN 949 000
              Others, of which                        BGN 14 633 000
              - materials                             BGN 13 408 000
              - assets                                BGN 100 000
              - others                                BGN 1 125 000
             The consolidated results of Monbat Plc and Monbat Recycling EAD for June,
             2012 is a loss in the amount of BGN 325 000, which represents a decrease in the
             results of 116.87 % compared to the consolidated results, generated by
             Monbat Plc and Monbat Recycling EAD in June 2011. The summarized data for
             the first six months of 2012 show that Monbat Plc and Monbat Recycling EAD
             have generated profit in the amount of BGN 4 794 000, which represents a
             profit decrease of 60 % compared to the consolidated profit, generated by
             Monbat Plc and Monbat Recycling EAD for the same period of 2011.
25.07.2012   Monbat AD presented the following announcement:
             With regard to the regular session of the General Assembly of the shareholders
             of MONBAT AD, held on 25.06.2012, we would like to announce that in the
             Commercial Register were filed the new company’s Articles of Association and
             the changes in the management system, namely the transition from a two-tier
             to one-tier management system as well as the election of members of the
             Board of Directors. The company will be managed by a Board of Directors
             consisting of 9 members - Atanas Bobokov, Ivan Karageorgiev, Petar Petrov,
             Plamen Bobokov, Stoyan Stalev, Alexander Chaushev, Nikolay Trenchev, Kamen
             Zahariev and Florian Huth.
02.07.2012   Monbat AD presented the following announcement:
             In June 2012 MONBAT Plc has bought back 7 414 company’s own shares at the
             average price of BGN 4.27 per share. The total number of the own shares hold
             by the company by 30.06.2012 is 2 433 429 shares at the average price of BGN
             6.02 per share.




                                            6
2. IMPORTANT DEVELOPMENTS FOR MONBAT AD THAT OCCURRED FROM THE BEGINNING OF
THE FINANCIAL 2011 YEAR TO THE END OF THE SECOND QUARTER OF 2012 WITH
ACCUMULATION

    Date                                      Developments
 25.09.2012   Monbat AD presented the following announcement:
              In August, 2012 Monbat Plc and Monbat Recycling EAD have generated
              consolidated net sales revenues in the amount of BGN 17 412 000 which
              represents a decrease of 4 % compared to the consolidated net sales
              revenues, generated by Monbat Plc and Monbat Recycling EAD in August 2011.
              The summarized data for the first eight months of 2012 show that Monbat Plc
              and Monbat Recycling EAD have generated consolidated net sales revenues in
              the amount of BGN 120 388 000 which represents a 10 % decrease compared
              to the consolidated net sales revenues, generated by Monbat Plc and Monbat
              Recycling EAD for the same period of 2011. The generated net sales revenues
              for the first eight months of 2012 in the amount of BGN 120 388 000 are
              allocated as follows:
                Production                            BGN 90 242 000
                Products                              BGN 9 828 000
                Services                              BGN 1 411 000
                Others, of which                      BGN 18 907 000
                - materials                           BGN 17 543 000
                - assets                              BGN 211 000
                - others                              BGN 1 153 000
              The generated consolidated profit before taxes of Monbat Plc and Monbat
              Recycling EAD for August, 2012 is BGN 1 092 000, which represents a profit
              decrease of 11 % compared to the consolidated profit, generated by Monbat
              Plc and Monbat Recycling EAD in August 2011. The summarized data for the
              first eight months of 2012 show that Monbat Plc and Monbat Recycling EAD
              have generated profit in the amount of BGN 7 254 000, which represents a
              profit decrease of 48 % compared to the consolidated profit, generated by
              Monbat Plc and Monbat Recycling EAD for the same period of 2011.
 04.09.2012   Monbat AD presented the following announcement:
              With the present we would like to announce that at the session of the Board of
              Directors of Monbat Plc, held on Sept. 4th, 2012 was approved a resolution for
              Peter Nikolov Bozadjiev to be assigned as a CFO of the company.Peter
              Bozadjiev graduated Business Administration from the University of
              Portsmouth, UK in 1997 and holds a Diploma in Public Administration and
              Executive Management, Negotiation Analysis from the Civic Education Project,
              Central European University & Jale University. He has a considerable
              professional experience in the following spheres: business transformation
              management, corporate performance management, finance and strategic
              planning, project management. His professional experience includes taking
              positions such as Senior Manager at PwC, Bulgaria, Country Manager –
              business consultant at IBM, Bulgaria, Manager, Operational Restructuring at
              KPMG, Bulgaria and Senior Manager at PwC, Serbia.


                                             7
03.09.2012   Monbat AD presented the following announcement:
             In August 2012 MONBAT Plc has bought back 58 654 company’s own shares at
             the average price of BGN 4.90 per share. The total number of the own shares
             hold by the company by 31.08.2012 is 2 556 298 shares at the average price of
             BGN 5.95 per share.
29.08.2012   Monbat AD presented the following announcement:
             In August 2012 MONBAT Plc has bought back 58 654 company’s own shares at
             the average price of BGN 4.90 per share. The total number of the own shares
             hold by the company by 31.08.2012 is 2 556 298 shares at the average price of
             BGN 5.95 per share.
24.08.2012   Monbat AD presented the following announcement:
             In July, 2012 Monbat Plc and Monbat Recycling EAD have generated
             consolidated net sales revenues in the amount of BGN 13 301 000 which
             represents a decrease of 19.72 % compared to the consolidated net sales
             revenues, generated by Monbat Plc and Monbat Recycling EAD in July 2011.
             The summarized data for the first seven months of 2012 show that Monbat Plc
             and Monbat Recycling EAD have generated consolidated net sales revenues in
             the amount of BGN 102 976 000 which represents a 10.75 % decrease
             compared to the consolidated net sales revenues, generated by Monbat Plc
             and Monbat Recycling EAD for the same period of 2011. The generated net
             sales revenues for the first seven months of 2012 in the amount of BGN
             102 976 000 are allocated as follows:
              Production                               BGN 77 189 000
              Products                                 BGN 8 124 000
              Services                                 BGN 1 175 000
              Others, of which                         BGN 16 488 000
              - materials                              BGN 15 159 000
              - assets                                 BGN 200 000
              - others                                 BGN 1 129 000
             The generated consolidated profit before taxes of Monbat Plc and Monbat
             Recycling EAD for July, 2012 is BGN 1 368 000, which represents a profit
             increase of 92.13 % compared to the consolidated profit, generated by
             Monbat Plc and Monbat Recycling EAD in July 2011. The summarized data for
             the first seven months of 2012 show that Monbat Plc and Monbat Recycling
             EAD have generated profit in the amount of BGN 6 162 000, which represents
             a profit decrease of 51.68 % compared to the consolidated profit, generated
             by Monbat Plc and Monbat Recycling EAD for the same period of 2011.
14.08.2012   Monbat AD presented the following announcement:
             With the present Monbat Plc would like to announce the end of the tenth buy
             back procedure of up to 1 % of the company’s registered capital or up to 390
             000 shares due to completion of the quantity of shares. The Board of Directors
             of Monbat Plc, Sofia, at its session, held on 14.08.2012, on the grounds of art.
             17 paragraphs 2 and 3 of the company’s Articles of Association with reference
             to art. 187b of the Commercial Act and on the grounds of art 111, paragraph 5
             of the Public Offering of Securities Act adopted a resolution for a new -
             eleventh buy back procedure of company’s own shares to be performed within



                                            8
             the limits, set up under the provision of art. 17 of the company’s Articles of
             Association, as follows:
             Number of shares liable to buy back under the current procedure – up to 2.00
             % of the company’s registered capital or up to 780 000 shares.
             Minimum price for the buy back – BGN 4.50.
             Maximum price for the buy back – BGN 5.50.
             Initial term for the buy back – 15.08.2012.
             The announcements to FSC, BSE and the investors shall be made after the end
             of the stock exchange session, not later than the end of the business day,
             preceding the day of the buy back. Term for implementation of the buy back,
             including payment of the bought back shares – up to 180 calendar days as of
             15.08.2012. In the event of completion of the shares, namely – the company
             buys back up to 780 000 shares prior to the final term, the current buy back
             procedure shall be terminated as successfully implemented. In the event that,
             within the term under the first sentence the maximum number of shares has
             not been bought back, the Board of Directors, in its own judgment, may both
             extend the term with another 180 calendar days under respective application
             of the provision of the preceding sentence, or terminate the procedure
             notwithstanding the number of the bought back shares. Within the term of the
             current procedure, depending on the market conditions, the Board of
             Directors, in its own judgment, may change the minimum and maximum price
             for the buy back. In this case, the company shall inform the Financial
             Supervision Commission, Bulgarian Stock Exchange, the investors and the
             public, as the announcement shall be made after the end of the stock
             exchange session, not later that the end of the business day, preceding the day
             when the change in the minimum or maximum price of the buy back takes
             effect. Investment intermediary selected by the Board of Directors, which is
             given the order for the buy back – Benchmark Finance AD. Purpose of the buy
             back – increasing the liquidity of the company’s shares.
31.07.2012   Monbat AD presented the following announcement:
             In July 2012 MONBAT Plc has bought back 64 215 company’s own shares at the
             average price of BGN 4.81 per share. The total number of the own shares hold
             by the company by 31.07.2012 is 2 497 644 shares at the average price of
             BGN 5.98 per share.
30.07.2012   Monbat AD presented q2 2012 individual report.
26.07.2012   Monbat AD presented the following announcement:
             With the present we would like to inform you that, with reference to the
             adopted decision of the General Assembly of Shareholders of MONBAT Plc,
             held on 25.06.2012, for distribution of dividends, the Board of Directors of the
             company, on its session, held on 25.07.2012, approved the following
             conditions for payments of the dividends based on the established overall
             amount of BGN 6 300 000:
                  9. Gross amount of the dividend per one share – BGN 0.17228;
                  10. Net amount of the dividend per one share – BGN 0.16367 for
                      shareholders – physical persons;
                  11. Commercial bank, chosen to pay the dividends – Unicredit Bulbank AD;



                                            9
12. Method of payment of the dividend: To the shareholders, whose/which
    securities accounts are under Register A of the Central Depository
    /personal accounts/, the dividends will be paid through the branches of
    Unicredit Bulbank AD. To the shareholders, whose/which securities
    accounts are under Register B of the Central Depository /clients’ sub-
    accounts with the investment intermediary/, the dividends will be paid
    through the respective investment intermediary with the cooperation
    of Central Depository.
13. Initial date for payment of the dividend – 03.09.2012;
14. Final date for payment of the dividend – 03.12.2012;
15. After expiration of the final date for payment of the dividend, within
    the 5-year period of prescription, all shareholders who/which had not
    receives their dividends for the year 2011 will have the right to receive
    their dividends from the company or through bank remittance after an
    explicit request, addressed to the company at its address of
    administration – 4, Golo Bardo Str, Sofia or to fax: +359 2 9882413.
    Dividends which have not been received and have not been asked for
    after expiration of the 5-year period of prescription shall be taken in
    the company’s Reserve Fund.
16. The Board of Directors of the company assigns the Executive Director
    of MONBAT Plc – Petar Petrov to sign the contract with Unicredit
    Bulbank AD regarding the distribution of dividends to the shareholders.




                           10
25.07.2012   Monbat AD presented the following announcement:
             In June, 2012 Monbat Plc and Monbat Recycling EAD have generated
             consolidated net incomes from sales to the amount of BGN 11 630 000 which
             represents a 30.26 % decrease compared to the consolidated net incomes
             from sales, generated by Monbat Plc and Monbat Recycling EAD in June 2011.
             The summarized data for the first six months of 2012 show that Monbat Plc
             and Monbat Recycling EAD have generated consolidated net incomes from
             sales to the amount of BGN 89 675 000 which represents a 9.24 % decrease
             compared to the consolidated net incomes from sales, generated by Monbat
             Plc and Monbat Recycling EAD for the same period of 2011.
             The generated net incomes from sales for the first six months of 2012 to the
             amount of BGN 89 675 000 are allocated as follows:
               Production                           BGN 66 689 000
               Products                             BGN 7 404 000
               Services                             BGN 949 000
               Others, of which                     BGN 14 633 000
               - materials                          BGN 13 408 000
               - assets                             BGN 100 000
               - others                             BGN 1 125 000
             The consolidated results of Monbat Plc and Monbat Recycling EAD for June,
             2012 is a loss in the amount of BGN 325 000, which represents a decrease in
             the results of 116.87 % compared to the consolidated results, generated by
             Monbat Plc and Monbat Recycling EAD in June 2011. The summarized data
             for the first six months of 2012 show that Monbat Plc and Monbat Recycling
             EAD have generated profit in the amount of BGN 4 794 000, which represents
             a profit decrease of 60 % compared to the consolidated profit, generated by
             Monbat Plc and Monbat Recycling EAD for the same period of 2011.
25.07.2012   Monbat AD presented the following announcement:
             With regard to the regular session of the General Assembly of the
             shareholders of MONBAT AD, held on 25.06.2012, we would like to announce
             that in the Commercial Register were filed the new company’s Articles of
             Association and the changes in the management system, namely the transition
             from a two-tier to one-tier management system as well as the election of
             members of the Board of Directors. The company will be managed by a Board
             of Directors consisting of 9 members - Atanas Bobokov, Ivan Karageorgiev,
             Petar Petrov, Plamen Bobokov, Stoyan Stalev, Alexander Chaushev, Nikolay
             Trenchev, Kamen Zahariev and Florian Huth.
02.07.2012   Monbat AD presented the following announcement:
             In June 2012 MONBAT Plc has bought back 7 414 company’s own shares at the
             average price of BGN 4.27 per share. The total number of the own shares hold
             by the company by 30.06.2012 is 2 433 429 shares at the average price of BGN
             6.02 per share.
27.06.2012   MONBAT AD presented the following announcement:
             The Genhjkeral Assembly of Shareholders authorized the company’s
             Managemfyuent Board to undertake all necessary legal and actual steps
             regarding the payment of dividend to the shareholders, including selection of a


                                           11
             commercial bank, initial and final term for payment of the dividend.
25.06.2012   MONBAT AD presented Minutes of General Assembly of Shareholders.
25.06.2012   MONBAT AD presented the following announcement:
             With regard to the regular session of the General Assembly of the
             Shareholders of MONBAT Plc, held on 25.06.2012 we would like to announce
             the following important resolutions approved by the shareholders, namely:
             1. The General Assembly of Shareholders approved the individual and
             consolidated annual Reports of the Management Board on the company’s
             activities for the year 2011, the audited individual and consolidated annual
             Financial Reports of the company for the year 2011 and the Reports of the
             certified auditor, the Annual Report on the activities of the Investor Relations
             Director of MONBAT Plc for the year 2011 and the Report on the activities of
             the audit committee for the year 2011.
             2. The General Assembly of Shareholders adopted a decision the company’s
             profit after taxes generated during the year 2011 in the amount of BGN
             8 110 890.43 to be distributed as follows: the amount of BGN 1 810 890.43 to
             be taken in the company’s Reserve Fund and the amount of BGN 6 300 000 to
             be distributed to the shareholders as dividend. Entitled to receive dividend
             shall be persons who were entered as shareholders of the company in the
             Central Depository’s registers as at the 14th day following the date of the
             General Assembly. The General Assembly of Shareholders authorized the
             Management Board of the company to undertake all necessary legal and
             factual steps related to payment of the dividend to the shareholders, including
             selection of a commercial bank, initial and final term for payment of the
             dividend.
             Shareholders should have in mind that as a result of completed procedures for
             redemption of company’s own shares Monbat AD has bought back its own
             shares and pursuant to the provision of Art. 187a, para. 3 of the Commercial
             Act prosecution of all rights given by those shares, including entitlement to
             dividend shall be suspended until the moment of their transfer. The number of
             bought back shares, for which the entitlement to dividend is suspended shall
             be set up at the date on which, according to the requirements of LPOS, the
             range of persons entitled to receive dividend is to be specified, namely by the
             14th day following the date of the General Assembly, where the decision to
             distribute the profit was adopted and the annual financial report was
             approved. Therefore the net and gross amount of due dividend per share shall
             be determined after receiving the list of shareholders from the Central
             Depository by the 14th day following the date of the General Assembly.
             3. The General Assembly of Shareholders released from responsibility the
             members of the Management Board and the Supervisory Board for their
             activities during 2011.
25.06.2012   MONBAT AD presented the following announcement:
             In May, 2012 Monbat Plc and Monbat Recycling EAD have generated
             consolidated net incomes from sales to the amount of BGN 14 636 000 which
             represents a growth of 11.47 % compared to the consolidated net incomes
             from sales, generated by Monbat Plc and Monbat Recycling EAD in May 2011.



                                            12
             The summarized data for the first five months of 2012 show that Monbat Plc
             and Monbat Recycling EAD have generated consolidated net incomes from
             sales to the amount of BGN 78 045 000 which represents a 4.97 % decrease
             compared to the consolidated net incomes from sales, generated by Monbat
             Plc and Monbat Recycling EAD for the same period of 2011.
             The generated net incomes from sales for the first five months of 2012 to the
             amount of BGN 78 045 000 are allocated as follows:
              Production                             BGN 57 705 000
              Products                               BGN 6 454 000
              Services                               BGN 757 000
              Others, of which                       BGN 13 129 000
              - materials                            BGN 11 904 000
              - assets                               BGN 100 000
              - others                               BGN 1 125 000
             The generated consolidated profit before taxes of Monbat Plc and Monbat
             Recycling EAD for May, 2012 is BGN 584 000, which represents a profit
             decrease of 61.30 % compared to the consolidated profit, generated by
             Monbat Plc and Monbat Recycling EAD in May 2011. The summarized data
             for the first five months of 2012 show that Monbat Plc and Monbat Recycling
             EAD have generated profit to the amount of BGN 5 119 000, which represents
             a profit decrease of 49.38 % compared to the consolidated profit, generated
             by Monbat Plc and Monbat Recycling EAD for the same period of 2011.
31.05.2012   MONBAT AD presented the following announcement:
             During May 2012 MONBAT Plc has bought back 63 984 company’s own shares
             at the average price of BGN 5.16 per share. The total number of the own
             shares hold by the company by 31.05.2012 is 2 426 215 shares at the average
             price of BGN 6.03 per share.
30.05.2012   MONBAT AD presented consolidated quarterly financial report for the first
             quarter of 2012.
28.05.2012   MONBAT AD presented the following announcement:
             With the present we would like to announce that with regard to the tenth buy
             back procedure of company’s own shares of Monbat AD and with a view to the
             price decrease of the company’s shares during the last several days and
             reaching the minimum price of the buy back, set up by the company’s
             Management Board, as well as with a view to continuing the implementation
             of the buy back program, the Management Board of Monbat Plc, at its session
             held on 28.05.2012, adopted a resolution to change the parameters of the buy
             back, namely in the part related to the minimum and maximum price. From
             29.05.2012 the minimum price of the buy back of the rest of the shares liable
             to buy back under the tenth procedure, namely 57 980 shares shall be
             corrected to BGN 4.00 and the maximum price shall be corrected to BGN 6.00.
28.05.2012   MONBAT AD presented the following announcement:
             In April, 2012 Monbat Plc and Monbat Recycling EAD have generated
             consolidated net sales revenues in the amount of BGN 14 730 000 which
             represents a 12 % growth compared to the consolidated net sales revenues,
             generated by Monbat Plc and Monbat Recycling EAD in April, 2011.


                                           13
             The summarized data for the first four months of 2012 show that Monbat Plc
             and Monbat Recycling EAD have generated consolidated net sales revenues in
             the amount of BGN 63 409 000 which represents a 8 % decrease compared to
             the consolidated net sales revenues, generated by Monbat Plc and Monbat
             Recycling EAD for the same period of 2011.
             The generated net sales revenues for the first four months of 2012 in the
             amount of BGN 63 409 000 are allocated as follows:
               Production                             BGN 47 280 000
               Products                               BGN 5 249 000
               Services                               BGN 623 000
               Others, of which                       BGN 10 257 000
               - materials                            BGN 9 042 000
               - assets                               BGN 100 000
               - others                               BGN 1 115 000
             The generated consolidated profit before taxes of Monbat Plc and Monbat
             Recycling EAD for April, 2012 is BGN 922 000, which represents a profit
             decrease of 46 % compared to the consolidated profit before taxes, generated
             by Monbat Plc and Monbat Recycling EAD in April 2011.
             The summarized data for the first four months of 2012 show that Monbat Plc
             and Monbat Recycling EAD have generated profit in the amount of BGN 4 535
             000, which represents a profit decrease of 47 % compared to the consolidated
             profit, generated by Monbat Plc and Monbat Recycling EAD for the same
             period of 2011.
21.05.2012   MONBAT AD presented Publication of the invitation for a general shareholders
             meeting.
21.05.2012   MONBAT AD presented invitation and materials for a general shareholders
             meeting.
08.05.2012   MONBAT AD presented the following announcement:
             The EBRD and ADM Capital, a private equity fund investing in emerging
             markets, are supporting the development of Bulgaria’s export-oriented
             enterprise sector with a financing package for Prista Oil Group BV, an
             important producer of car lubricants and batteries. Prista Oil Group operates
             in over 20 countries, mainly in central and eastern Europe, and more than half
             of its revenues come from exports. The financing package comprises €48
             million of equity and convertible instruments structured in an innovative way
             that will allow the company to reorganise its balance sheet. Additionally the
             EBRD will be providing a €12 million loan to finance Prista Oil Group’s capital
             investment programme. This project will enable Prista Oil Group to restructure
             its shareholding by buying out a minority shareholder, to improve its balance
             sheet and corporate structure, and to optimise its operational efficiency.
             Additionally the EBRD’s financing will support the expansion of Prista Oil
             Group’s branded network of service centres outside Bulgaria (in Turkey,
             Romania, Hungary and the Slovak Republic), the installation of new equipment
             and the upgrade of the corporate IT system. Since the beginning of its
             operations in Bulgaria the EBRD has invested more than €2.5 billion in over
             200 projects in various sectors of the country’s economy. With total project


                                           14
             value exceeding €8 billion, the EBRD’s funds have helped mobilise over €5.5
             billion in co-financing from other sources.
02.05.2012   MONBAT AD presented consolidated annual report for 2011.
02.05.2012   MONBAT AD presented individual quarterly financial report for the first
             quarter of 2012.
02.05.2012   MONBAT AD presented the following announcement:
             During April 2012 MONBAT Plc has bought back 19 544 company’s own shares
             at the average price of BGN 5.18 per share. The total number of the own
             shares hold by the company by 30.04.2012 is 2 362 231 shares at the average
             price of BGN 6.06 per share.
02.05.2012   MONBAT AD presented the following announcement:
             With regard to a publication as of 05.02.2012 in Investor BG on a change in the
             shares hold by Prista Holding EAD and Monbat Trading OOD in the capital of
             Monbat AD, hereby we would like to inform you that the shares concerned,
             owned by the two companies were transferred without a change in the
             ownership under a client’s account of UniCredit Bank Austria AG, in its
             capacity of a custodian bank. In this connection, no change in the shares, hold
             by Prista Holding EAD and Monbat Trading OOD in the capital of Monbat AD
             has been made and as of 02.05.2012 the two companies hold respectively
             68.5% and 7.06%.
25.04.2012   MONBAT AD presented the following announcement:
             We are especially happy to inform you that for a consecutive year MONBAT Plc
             is a winner in the rank list of “Kapital 50” in the category Company with Best
             Corporate Governance. The company took the prestigious third place in the
             category „Large capitalizations” in the rank list of the 50 best companies on
             the stock exchange in Bulgaria for 2011.
25.04.2012   MONBAT AD presented the following announcement:
             We would like to announce that in March, 2012 Monbat Plc and Monbat
             Recycling EAD have generated consolidated net incomes from sales to the
             amount of BGN 19 194 000 which represents a growth of 9 % compared to
             the consolidated net incomes from sales, generated by Monbat Plc and
             Monbat Recycling EAD in March, 2011. The summarized data for the first three
             months of 2012 show that Monbat Plc and Monbat Recycling EAD have
             generated consolidated net incomes from sales to the amount of BGN 48 679
             000 which represents a 12,81 % decrease compared to the consolidated net
             incomes from sales, generated by Monbat Plc and Monbat Recycling EAD for
             the same period of 2011. The generated net incomes from sales for the first
             three months of 2012 to the amount of BGN 48 679 000 are allocated as
             follows:
               Production                              BGN 37 289 000
               Products                                BGN 3 235 000
               Services                                BGN 459 000




                                           15
               Others, of which                       BGN 7 696 000
               - materials                            BGN 6 808 000
               - assets                               BGN 100 000
               - others                               BGN 788 000
             The generated consolidated profit before taxes of Monbat Plc and Monbat
             Recycling EAD for March, 2012 is BGN 2 191 000, which represents a profit
             growth of 29 % compared to the consolidated profit, generated by Monbat
             Plc and Monbat Recycling EAD in March 2011. The summarized data for the
             first three months of 2012 show that Monbat Plc and Monbat Recycling EAD
             have generated profit to the amount of BGN 3 613 000, which represents a
             profit decrease of 47,52 % compared to the consolidated profit, generated by
             Monbat Plc and Monbat Recycling EAD for the same period of 2011.
20.04.2012   MONBAT AD presented the following announcement:
             Within the period 24.10.2011 – 20.04.2012 Monbat Plc has bought back,
             under the tenth buy back procedure within the initially announced term, in
             total 266 207 own shares at the average price of BGN 5.22 per share.
             With the present notice Monbat Plc would like to announce the extension with
             new 180 calendar days of the tenth buy back procedure of up to 1 % of the
             company’s registered capital or up to 390 000 shares to the amount of the rest
             number of shares, namely 123 793 shares under the existing price parameters,
             namely:
             Minimum price for the buy back – BGN 5.00.
             Maximum price for the buy back – BGN 7.00.
             Within the extended term of the current procedure, depending on the market
             conditions, the Management Board, in its own judgment, may change the
             minimum and maximum price of the buy back. In this case, the company shall
             inform the Financial Supervision Commission, Bulgarian Stock Exchange, the
             investors and the public, as the announcement shall be made after the end of
             the stock exchange session, not later that the end of the business day,
             preceding the day when the change in the minimum or maximum price of the
             buy back takes effect. Investment intermediary selected by the Management
             Board, which is given the order for the buy back – Benchmark Finance AD.
02.04.2012   MONBAT AD presented the following announcement:
             During March 2012 MONBAT Plc has bought back 85 798 company’s own
             shares at the average price of BGN 5.21 per share. The total number of the
             own shares hold by the company by 31.03.2012 is 2 342 687 shares at the
             average price of BGN 6.07 per share.

30.03.2012   MONBAT AD presented Individual Annual Financial statement for 2011.




                                           16
28.03.2012   MONBAT AD presented a notification on the following:
             MONBAT AD signed a deposit contract with Prista Oil Holding EAD under the
             conditions of Art. 114, para. 8, item 2 of the POSA with the following
             parameters of the contract:
             1. Amount of the deposit: BGN 600 000;
             2. Term of the deposit: 12 months with a provision for extension at the initially
             agreed conditions in the event that the deposit contract is not terminated;
             3. Interest rate: in the amount of 6.5 % annually for the term of the deposit
             with interest convention 365/365 days.
             4. The conditions of the deposit contract are not less favorable than the
             market conditions in the country.
26.03.2012   MONBAT AD presented the following announcement:
             In February, 2012 Monbat Plc and Monbat Recycling EAD have generated
             consolidated net incomes from sales to the amount of BGN 15 350 000 which
             represents a 10.43 % decrease compared to the consolidated net incomes
             from sales, generated by Monbat Plc and Monbat Recycling EAD in February,
             2011.
             The summarized data for the first two months of 2012 show that Monbat Plc
             and Monbat Recycling EAD have generated consolidated net incomes from
             sales to the amount of BGN 29 485 000 which represents a 22.80 % decrease
             compared to the consolidated net incomes from sales, generated by Monbat
             Plc and Monbat Recycling EAD for the same period of 2011.
             The generated net incomes from sales for the first two months of 2012 to the
             amount of BGN 29 485 000 are allocated as follows:
               Production                         BGN 23 490 000
               Products                           BGN 1 286 000
               Services                           BGN 270 000
               Others, of which                   BGN 4 439 000
               - materials                        BGN 3 986 000
               - assets                           BGN 94 000
               - others                           BGN 359 000
             The generated consolidated profit before taxes of Monbat Plc and Monbat
             Recycling EAD for February, 2012 is BGN 1 123 000, which represents a profit
             decrease of 51.23 % compared to the consolidated profit, generated by
             Monbat Plc and Monbat Recycling EAD in February 2011.
             The summarized data for the first two months of 2012 show that Monbat Plc
             and Monbat Recycling EAD have generated profit to the amount of BGN 1 422
             000, which represents a profit decrease of 72.57 % compared to the
             consolidated profit, generated by Monbat Plc and Monbat Recycling EAD for
             the same period of 2011.
             The weaker results generated in February 2012 compared to the results
             achieved in February 2011 are due to the following reasons:
                         o Weaker demand for the production of Monbat Plc in the
                            European markets in February 2012 compared to February
                            2011;
                        o A decrease on the price of the basic row material – lead for the



                                            17
             first two months of 2012 with 300 euro to the average price of 1600 euro per
             metric ton compared to the same period of 2011, which influences the
             effectiveness of Monbat Recycling EAD and Monbat Plc respectively.
             The management of Monbat Plc expects equalization of the consolidated
             results in March 2012 with those of March 2011 and achievement of higher
             consolidated results during the second quarter of 2012 compared of those
             achieved in the second quarter of 2011.
22.03.2012   MONBAT presented the following announcement:
             With the present we would like to inform that Monbat Plc signed a deposit
             contract with Prista Oil Holding EAD under the conditions of Art. 114, para. 8,
             item 2 of the POSA with the following parameters of the contract:
             1. Amount of the deposit: BGN 1 000 000;
             2. Term of the deposit: 12 months with a provision for extension at the initially
             agreed conditions in the event that the deposit contract is not terminated;
             3. Interest rate: in the amount of 6.5 % annually for the term of the deposit
             with interest convention 365/365 days.
             4. The conditions of the deposit are not less favorable than the market
             conditions in the country.
29.02.2012   MONBAT AD presented the following announcement:
             During February 2012 MONBAT Plc has bought back 70 312 company’s own
             shares at the average price of BGN 5.14 per share. The total number of the
             own shares hold by the company by 29.02.2012 is 2 256 889 shares at the
             average price of BGN 6.11 per share.
29.02.2012   MONBAT AD presented an interim consolidated financial statement for the
             fourth quarter of 2011.
27.02.2012   MONBAT AD presented the following announcement:
             In January, 2012 Monbat Plc and Monbat Recycling EAD have generated
             consolidated net incomes from sales to the amount of BGN 14 135 000 which
             represents a 32.87 % decrease compared to the consolidated net incomes
             from sales, generated by Monbat Plc and Monbat Recycling EAD in January,
             2011.
             The generated net incomes from sales in January, 2012 to the amount of BGN
             14 135 000 are allocated as follows:
               Production                          BGN 11 806 000
               Products                            BGN 195 000
               Services                            BGN 148 000
               Others, of which                    BGN 1 986 000
               - materials                         BGN 1 870 000
               - assets                            BGN 94 000
               - others                            BGN 22 000
             The generated consolidated profit before taxes of Monbat Plc and Monbat
             Recycling EAD for January, 2012 is BGN 299 000, which represents a profit
             decrease of 89 % compared to the consolidated profit, generated by Monbat
             Plc and Monbat Recycling EAD in January, 2011.
             The weaker results generated in January 2012 compared to the results




                                            18
             achieved in January 2011 are due to the following reasons:
                 o Weaker demand for the production of Monbat Plc in January 2012
                     compared to January 2011;
                 o Decrease with BGN 470 000 of the work in progress of Monbat Plc;
                 o Planned annual repair of the production facilities of Monbat Recycling
                     EAD in Bulgaria, due to which the company has produced less
                     production in January 2012.
23.02.2012   MONBAT AD presented the following announcement:
             On 23.02.2012 Krasimir Stoyanov Krulev was deleted from the Commercial
             Register to the Registration Agency as a member of the Management Board of
             Monbat Plc, Sofia, pursuant to a respective resolution adopted by the
             Supervisory Board of the company.
20.02.2012   MONBAT AD presented the following announcement:
             The Supervisory Board of MONBAT Plc adopted a decision for changes in the
             company’s Management Board as follows: releases Krasimir Stoyanov Krulev
             as a Member of the Management Board of Monbat Plc. The changes in the
             Management Board are to be entered in the Commercial Register.
03.02.2012   MONBAT AD presented the following announcement:
             As a result of the successfully completed by Monbat Plc Project “Increasing the
             competitiveness of Monbat Plc by investing in new equipment for grid and
             plate for dry charged and gravity casted lead acid batteries producing”,
             approved with a Resolution No ТМГ-01-1/27.05.2009 of the Executive Director
             of the Bulgarian Small and Medium Enterprises Promotion Agency under an
             open procedure for a competitive selection of projects with “Technological
             Modernization in Big Enterprises”, the company received a grant in the
             amount of BGN 4 227 266.23. The Project has been implemented on the basis
             of a contract signed with the Bulgarian Small and Medium Enterprises
             Promotion Agency № ТМГ-02-4/09.07.2009 within 18 months and the
             management of Monbat Plc acknowledges successful completion of both the
             specific and the main purpose of the tender offer, namely providing
             competitiveness and sustainable development of the company by means of
             introducing new and innovative equipment and technologies within the
             conditions of the world financial and economic crisis.In 2011 the total amount
             of the investments made in Monbat Plc and Monbat Recycling EAD is BGN
             19 626 000 out of which BGN 17 451 000 investments in Monbat Plc and
             2 175 000 investments in Monbat Recycling EAD.
31.01.2012   MONBAT AD presented the following announcement:
             During January 2011 MONBAT Plc has bought back 46 941 company’s own
             shares at the average price of BGN 5.32 per share. The total number of the
             own shares hold by the company by 31.01.2012 is 2 186 577 shares at the
             average price of BGN 6.15 per share.
30.01.2012   MONBAT AD presented Q4 2011 individual financial report.
25.01.2012   MONBAT AD presented the following announcement:
             In December 2011 Monbat Plc and Monbat Recycling EAD have generated
             consolidated net incomes from sales to the amount of BGN 18 493 000, which
             represents a 15.95 % decrease compared to the consolidated net incomes



                                           19
                from sales, generated by Monbat Plc and Monbat Recycling EAD in December
                2010.
                The summarized data for 2011 show that Monbat Plc and Monbat Recycling
                EAD have generated consolidated net incomes from sales to the amount of
                BGN 213 238 000 which represents a 12.90 % growth compared to the
                consolidated results of Monbat Plc and Monbat Recycling EAD for 2010.
                The generated net incomes from sales for 2011 to the amount of BGN 213
                238 000 are allocated as follows:
                  Production                         BGN 165 877 000
                  Products                           BGN 9 054 000
                  Services                           BGN 1 431 000
                  Others, of which                   BGN 36 876 000
                  - materials;                       BGN 32 519 000
                  - assets;                          BGN 1 249 000
                  - others                           BGN 3 108 000
                The generated consolidated profit before taxes of Monbat Plc and Monbat
                Recycling EAD for December 2011 is BGN 1 043 000, which represents a profit
                decrease of 13.73 % compared to the consolidated profit, generated by
                Monbat Plc and Monbat Recycling EAD in December 2010.
                The summarized data for 2011 show that Monbat Plc and Monbat Recycling
                EAD have generated consolidated profit before taxes to the amount of BGN 21
                274 000, which represents a profit growth of 6.67 % compared to the
                consolidated profit before taxes, generated by Monbat Plc and Monbat
                Recycling EAD for 2010.
  12.01.2012    MONBAT AD presented the following announcement:
                With the present we would like to inform you that today – Jan. 12th 2012 were
                awarded the annual awards of the Bulgarian Stock Exchange - Sofia for 2011.
                As a company that applies high disclosure and transparency standards
                "Monbat" Plc took the first place in the category "Issuer with greatest
                contribution in the development of the capital market in 2011”.
  03.01.2012    MONBAT AD presented the following announcement:
                During December 2011 MONBAT Plc has bought back 41 541 company’s own
                shares at the average price of BGN 5.24 per share. The total number of the
                own shares hold by the company by 31.12.2011 is 2 139 636 shares at the
                average price of BGN 6.17 per share.


3. IMPACT OF THE IMPORTANT DEVELOPMENTS FOR MONBAT AD THAT OCCURRED DURING
THE THIRD QUARTER OF 2012 ON THE RESULTS IN THE FINANCIAL STATEMENT

      As at 30.09.2012 MONBAT AD reported individual net sales revenues in the amount of
BGN 122 110 thousand which represents a decrease by 11 % compared to the net sales
revenues generated for the same period of 2011 in the amount of BGN 137 502 thousand.




                                              20
       The individual profit before taxes generated by MONBAT AD as at 30.09.2012 is in the
amount of BGN 6 176 thousand compared to the profit before taxes reported for the third
quarter of 2011 in the amount of BGN 4300 thousand. This represents an increase of the profit
before taxes of MONBAT AD on an individual basis by 44 %.

       The individual net profit of MONBAT AD as at 30.09.2012 is in the amount of BGN 5 503
thousand and grows by 45 % compared to the individual net profit of the Company for the same
period of 2011 which is in the amount of BGN 3 805 thousand.

      As at 30.09.2012 the earnings before interest, taxes, depreciation and amortization
(EBITDA) of MONBAT AD on an individual basis were in the amount of BGN 10 794 thousand
compared to the EBITDA reported for the same period of 2011 in the amount of BGN 9 265
thousand.

      The earnings before interest, taxes, depreciation and amortization of the Company as at
30.09.2012 reports a growth by 16.50 % compared to the same period of 2011.

       As at 30.09.2012 the earnings before interest and taxes (EBIT) of MONBAT AD, on an
individual basis, were in the amount of BGN 7 080 thousand, compared to EBIT in the amount of
BGN 6 217 thousand as at 30.09.2011. The earnings before interest and taxes (EBIT) of the
Company as at 30.09.2012 reports a 13.88 % growth compared to the same quarter of 2011.


4. DESCRIPTION OF THE PRINCIPAL RISKS AND UNCERTAINTIES WHICH MONBAT AD WILL
FACE DURING THE FOLLOWING FINANCIAL PERIOD


SYSTEMATIC RISKS


OVERALL MACROECONOMIC RISK

       According to data of the National Statistical Institute, in September 2012 the industrial
production index decreased by 0.5 percentage points compared to August 2012.
       In August, 2012 the industrial production index increased by 1 % compared to July, 2012.
Compared to the same month of 2011 the index reports a 2 % increase.
       For the period January – August, 2012 the export of Bulgaria for third countries increased
by 9.4 % compared to the respective period of the previous year and was in the amount of BGN
10.9 billion and the import increased by 14.6 % and was in the amount of BGN 13.8 billion.
During the first eight months of 2012, were exported goods, in total for third countries and the
EU, in the amount of BGN 26.6 billion and compared to the respective period of 2011 the
exports increased by 2.3%, while the total value of imported goods was BGN 33.1 billion and
increased by 13.1 %.
       In July, 2012 the industrial production index registered a 0.4 % growth compared to the
respective month of 2011. For July the retail trade turnover was 1.6 % over the level as from
July, 2011. For the period January – July, 2012 the current account was negative and amounted




                                                 21
to EUR 487.7 million with a surplus of EUR 291.8 million for the same period of 2011. For this
period the trade balance was also negative and amounted to EUR 2 417 million with a deficit of
EUR 1 047.9 million for the same period of 2011.




INTEREST RATE RISK

        The interest rate risk is related to possible, contingent adverse changes in the interest
rates, set by the financial institutions in the Republic of Bulgaria.
        At the session of the European Central Bank, held on 05.07.2012 the Management Board
of the Bank approved the following resolutions:




                                                 22
           the interest rates on the main operations of the refinancing Eurosystem will be
            reduced by 25 basic points to 0.75 % starting from the operation the payment for
            which is to be made on July 11th, 2012;
        the interest rate on the marginal credit facility will be reduced by 25 basic points to
            1.50 % as of July 11th, 2012;
        the interest rate on the deposit facility will be reduced by 25 basic points to 0.00 %
            as of July 11th, 2012;
       At its session of 02.08.2012 the Management Board of the European Central Bank
adopted a resolution to leave the main interest rates unchanged after the reduction by 25 basic
points as from July.
       At a session, held on 06.09.2012 the Management Board of the European Central Bank
adopted a resolution the interest rates on the main refinancing operations and the interest
rates on the marginal credit facility and the deposit facility to remain unchanged - - respectively
0.75 %, 1.50 % and 0.00 %.
       The Bulgarian National Bank announced that as of 01.09.2012 the base interest rate
(simple annual interest) would be 0.03 %.

           THE BASE INTEREST RATES OF THE BULGARIAN NATIONAL BANK FOR THE PERIOD
                     JANUARY – SEPTEMBER, 2012 ARE THE FOLLOWING:

                     Table № 1
                                 Month                   Interest rate
                              January, 2012                   0.22 %
                             February, 2012                   0.18 %
                               March, 2012                    0.15 %
                                April, 2012                   0.15 %
                                May, 2012                     0.14 %
                                June, 2012                    0.14 %
                                July, 2012                    0.16 %
                              August, 2012                    0.08 %
                            September, 2012                   0.04 %
                                                                                     *Source: BNB

INFLATION RISK AND LOSS OF VALUE


        Inflation risk is the overall increase in prices, where money is devalued and there is
likelihood for households and businesses to suffer a loss.
        According to data of the National Statistical Institute, the consumer prices index (CPI) for
July, 2012 compared to June, 2012 was 101.5 %, i.e. monthly inflation was 1.5 %. The inflation
as of the beginning of the year (July, 2012 compared to December, 2011) was 2.1 %. The
harmonized consumer prices index (HCPI) for July, 2012 compared to June, 2012 was 101.1 %,
i.e. monthly inflation was 1.1 %. The inflation as of the beginning of the year (July, 2012
compared to December, 2011) was 1.8 %.



                                                   23
        According to data of the National Statistical Institute, the consumer prices index (CPI) for
August, 2012 compared to July, 2012 was 100.5 %, i.e. monthly inflation was 0.5 %. The inflation
as of the beginning of the year (August, 2012 compared to December, 2011) was 2.6 %. The
harmonized consumer prices index (HCPI) for August, 2012 compared to July, 2012 was 100.6%,
i.e. monthly inflation was 0.6 %. The inflation as of the beginning of the year (August, 2012
compared to December, 2011) was 2.4 %.
        According to data of the National Statistical Institute, the Consumer Price Index for
September, 2012 compared to August, 2012 was 101.1%, i.e. monthly inflation was 1.1 %. The
inflation as of the beginning of the year (September, 2012 compared to December, 2011) was
3.7 %. The harmonized consumer prices index (HCPI) for September, 2012 compared to August,
2012 was 100.3%, i.e. monthly inflation was 0.3 %. The inflation as of the beginning of the year
(September, 2012 compared to December, 2011) was 2.8 %.

              INFLATION MEASURED BY THE CONSUMER PRICE INDEX (CPI) BY MONTHS




   INFLATION IN THE COUNTRY FOR THE PERIOD JANUARY – JUNE 2012 IS THE FOLLOWING:
                   Table № 2
                              Month                     % of inflation
                            January, 2012                    0.2 %
                           February, 2012                    0.4 %
                             March, 2012                     0.3 %             *
                              April, 2012                    0.2 %
                              May, 2012                      -0.1 %
                              June, 2012                     -1.0 %
                              July, 2012                     1.5 %
                             August, 2012                    0.5 %
                          September, 2012                    1.1 %
Source: NSI




                                                   24
POLITICAL RISK

        Political risk is related to the stability of the Government of the country and to eventual
adverse changes in its long term foreign and internal economic policy that might affect
negatively the investment environment.
        The lack of particular application of the measures that will lead to dealing with the
consequences of the financial crisis on the part of the government as well as to meeting the
essential requirements of the European Union concerning transparency in spending public
funds, fight against corruption, independence and effectiveness of the judical system
continuously create instability. Failure to meet the requirements set by the EU could lead to
activation of safeguard clauses and subsequent diversion and/or reduction of resources from
the European funds.
        The political risk will increase in the event that the government fails to take adequate
measures to reduce the negative consequences of the financial and economic crisis in the
country.
        Other factors that also influence this risk are possible legislative changes and, in
particular, those concerning the economic and investment climate in the country.


CURRENCY RISK


         Exposure to currency risk is the dependence on and the effects from changes in the
currency exchange rates. Systematic currency risk is the likelihood of any possible change of the
currency regime in the country (currency board) which would either lead to devaluation of the
BGN or the appreciation of the BGN against foreign currencies.
         Currency risk will have impact over companies having market shares, payments to which
are made in currencies different from the Bulgarian lev and the euro. In view of the fact that
according to the current legislation in the country the Bulgarian lev is pegged to the euro at the
rate of EUR 1 = BGN 1.95583 and the Bulgarian National Bank is obliged to maintain a level of
Bulgarian lev in circulation equivalent to the foreign exchange reserves of the Bank, the risk of
devaluation of the lev against the European currency is minimal and consists in a possible
elimination of the currency board in Bulgaria ahead of term. At this stage it appears to be
unlikely since the Currency Board is expected to be repealed upon adoption of the euro as an
official legal tender in Bulgaria, which was planned for 2012.
         Theoretically, currency risk could increase when Bulgaria joins the second phase of the
European Exchange Rate Mechanism (ERM II). This is a regime under which the country must
maintain the currency rate against the euro within a + / -15% from central parity. In practice, all
countries which are currently in the mechanism (Denmark, Estonia, Cyprus, Lithuania, Latvia,
Malta) have witnessed fluctuations that were significantly smaller than the allowed ± 15%.
         The fixed rate of the BGN to the EUR does not eliminate the risk for the Bulgarian
currency of adverse movements in the euro exchange rate against other major currencies (U.S.
dollar, British pound, Swiss franc) in the international financial markets, but at present the
company does not consider that this risk would be significant in terms of its activity due to the
fact that all purchases and sales of MONBAT AD are being carried out in euro.




                                                  25
                                    UNSYSTEMATIC RISKS

             RISK OF PRICE CHANGES IN THE BASIC PRIME AND RAW MATERIALS

        The principal activity of MONBAT AD is production and trading with accumulator and
lead-acid batteries – starter batteries, stationary batteries for telecom application, semi-
traction batteries, specialized batteries – army power range and locomotive batteries. Major
prime and raw materials for the company’s production process are lead and lead alloys,
polypropylene, polyethylene separator and sulfuric acid. From the beginning of the year to the
end of the reporting period, lead takes approximately 63 % of the cost structure per unit:




* Average lead price for the third quarter of 2012 is 1980.46 USD/MT.

       The risk of price change in the basic raw material – lead is being managed through
construction of company’s own recycling facilities.

          DEPENDENCE OF MONBAT AD ON DISTRIBUTORS, SUPPLIERS, CUSTOMERS

        There is no dependence of MONBAT AD on customers due to the fact that company’s
sales are not being made directly with customers but through the mediation of an extensive
distribution network in the country and abroad. Sales with deferred payment in the country and
for export are being insured in the Bulgarian Export Insurance Agency (BAEZ) by reason of which
the risk of non-payment on the part of the customers is completely eliminated.
        MONBAT AD is an export-oriented company. The company exports most of its products.
The most important markets for the company are France, Turkey, Germany and Great Britain.
        Breakdown of the markets of MONBAT AD on an individual basis for the third quarter of
2012 is shown in the table below.




                                                26
Тable № 3

                                30.9.2012                    30.9.2011
 Country                     Export (EUR,mln)      %       Export (EUR,mln)         %
 FRANCE                             6,9          14,64           7,95             16,14
 GERMANY                            4,6          9,89           10,42             21,15
 TURKEY                             4,1          8,84            3,28             6,65
 OTHERS                            4,47          9,53            4,15             8,39
 GREAT BRITAIN                       3           6,39            2,85             5,78
 GREECE                             2,5          5,37            1,58              3,2
 NETHERLANDS                        2,3          4,90            2,81             5,69
 POLLAND                            1,9          3,96            2,35             4,78
 SPAIN                              1,7          3,59            1,36             2,77
 SOUTH AFRICA                       1,5          3,17             0,3              0,6
 UKRAINE                            1,4          3,07              1              2,03
 SERBIA                             1,3          2,78            1,13              2,3
 ROMANIA                            1,3          2,73            1,64             3,33
 HUNGARY                            1,2          2,63            1,06             2,15
 BELGIUM                            1,2          2,55            1,41             2,86
 FINLAND                            1,2          2,55            1,29             2,61
 ITALY                             1,17          2,49            0,98               2
 DENMARK                            1,1          2,30             0,9             1,83
 IRELAND                             1           2,13             1,1             2,23
 NORWAY                            0,98          2,09            0,84             1,71
 CZECH                              0,9          1,85            0,54              1,1
 EGYPT                              0,7          1,49           0,028              0,1
 SWEDEN                             0,5          1,07             0,3              0,6
 TOTAL                            46,92           100           49,27              100



        For the period 01.01.2012 - 30.09.2012 MONBAT AD has generated individual revenues
form exports totaling BGN 91 771 thousand.
        For the period 01.01.2012 - 30.09.2012 major market for MONBAT AD was France with
EUR 6.90 mln. sales revenues which represents 14.64 % of the total export of the company on
an individual basis.
        The generated sales revenues on the domestic market on an individual basis during the
third quarter of 2012 are in the amount of BGN 30 339 thousand and represent 24.85 % of the
total sales, and the generated revenues from exports including intra-community supplies are in
the amount of BGN 91 771 thousand and represent 75.15 % of the net sales revenues of the
company.




                                                27
            BREAKDOWN OF THE NET SALES REVENUES ON THE DOMESTIC AND
                               FOREIGN MARKETS




5. INFORMATION ABOUT THE CONCLUDED LARGE TRANSACTIONS WITH RELATED PARTIES
DURING THE SECOND QUARTER OF 2012

        Related parties to MONBAT AD are any companies where MONBAT AD holds over 50 %
of the capital and the parties related to them.
        Related parties to MONBAT AD are also all companies where the major shareholder
PRISTA OIL HOLDING EAD holds over 50 per cent of the capital as well as all the other
companies where the single owner PRISTA OIL HOLDING EAD holds over 50 per cent of the
capital.
        During the third quarter of 2012 MONBAT AD has concluded large transactions with
related parties, as follows:

Table № 4
Related party               Type of relation              Transactions
START AD, Sofia             Subsidiary     company   of   Sale of materials on the part
                            MONBAT AD as MONBAT AD        of MONBAT AD
                            holds 87.26 per cent of the
                            voting shares
MONBAT RECYCLING EAD        Subsidiary     company   of   Sale of others on the part of
                            MONBAT AD as MONBAT AD        MONBAT AD
                            holds 100 % of the voting
                            shares
START AD, Sofia             Subsidiary     company   of   Purchase of materials on the
                            MONBAT AD as MONBAT AD        part of MONBAT AD
                            holds 87.26 per cent of the
                            voting shares



                                             28
MONBAT DOO Serbia   Subsidiary    company    of    Purchase of materials on the
                    MONBAT RECYCLING EAD           part of MONBAT AD
                    BULGARIA, as MONBAT AD
                    holds 100 % of the voting
                    shares      of      MONBAT
                    RECYCLING EAD BULGARIA.
YU MONBAT DOO       Subsidiary    company    of    Sale of production on the
                    Monbat DOO, Serbia – 100 %     part of MONBAT AD
                    owned by Monbat Recycling
                    EAD, Bulgaria - 100 % owned
                    by MONBAT AD


Date: 30.10.2012
Sofia
                               For MONBAT AD:
                    /Atanas Bobokov – Chairperson of the Board of Directors /




                                     29

				
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