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									                   Excellence in advice, precision in execution




“NOVA SLOGA” d.o.o. Trstenik
           Company profile



                               Belgrade, March 2007




                                 www.cesmecon.com
Introduction
                                               Basic info                                  Investment opportunity
  ═ Ministry of economy of Republic of Serbia filed an initiative for     ═ By acquisition of 70% of total equity of the Company, Buyer would
    privatization of Company for production, proceeding and trade           invest in significant resources in the area of water and food
    od agricultural products NOVA SLOGA DOO from Trstenik                   production.
    through sale of 70% of state owned equity, i.e. 70% of total
                                                                          ═ The Company NOVA SLOGA possesses exclusive right on
    equity of the Company in accordance with the Law on
                                                                            exploitation of natural mineral water from the Veluće spring, near
    privatization.
                                                                            Trstenik, assigned by the Ministry of mining and energy of the
  ═ The Company will be privatized in the first quarter of 2007.            republic of Serbia.
    Bearing in mind, the size and the importance of the Company,
                                                                          ═ The special value of MIVELA natural mineral water is in its unique
    Privatization Agency decided to sell the Company by the
                                                                            chemical structure that makes it on of the waters with the highest
    method of public tender. CES Mecon is the advisor of the
                                                                            quality not only in Serbia, but in Europe and world, too.
    Privatization Agency in this privatization, on the preparation of
    tender and contacts with potential buyers.                            ═ The water potential on MIVELA spring is permanent in terms of
                                                                            quality and quantity, and is in constant process of regeneration.
  ═ Because of its resource potential and market perspective the
                                                                            Current capacity of the spring is 2,3 liters per second with a
    Company is certainly attractive to potential buyers and strategic
                                                                            possibility of its increase.
    investors.
                                                                          ═ The production of bottled water is one of the potentially most
  ═ Resources, market position and performance of the Company
                                                                            profitable sectors in Serbia. The market is in constant expansion,
    are presented in this document, with a purpose to inform
                                                                            with growth rates substantially higher than regional and world
    potential investors about the Company, and then based on thier
                                                                            averages.
    perspective and opinion define their strategic actions regarding
    this Company.                                                         ═ With an intensive marketing and improved retail network, with such
                                                                            water quality, the Company could substantially increase its market
  ═ In that sense, we invite you to, as a potential Buyer, express
                                                                            share in short-term, and by investing, in mid-term it could take the
    your interest and initiative for participation in the privatization
                                                                            leading role on the bottled water market in Serbia.
    process of the Company NOVA SLOGA. You can send your
    comments, suggestions or requests for an additional information       ═ The Company has a well diversified production program. Beside
    to the advisor of the Privatization Agency in this project:             the production of mineral water, the Company has machinery for
                                                                            production of fruit and vegetables processing.
                                         CES MECON
                                      Danijelova 12-16,                   ═ Located in the heart of Rasinski county, traditional area known for
                                        11000 Belgrade                      its production of fruits and vegetables, the Company possesses
                                   Tel: +381 11 3090 800;                   significant resources in its nearest surrounding. The Company is
                                   Fax: +381 11 3090 876;                   also strategically well positioned, near to main roads and Serbia‟s
                                E-mail: office@cesmecon.com                 biggest centers.
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                                                                                                                                            2
Company overview
                                         Core business                                            Location
   ═ The Company NOVA SLOGA has 50 years of experience in              ═ The Company NOVA SLOGA is located in Trstenik, in Rasinski
     processing of fruits and vegetables and over 20 years in the        county that is known for its natural resources and its tradition for
     production of bottled mineral water.                                agriculture.
   ═ Production in the Company NOVA SLOGA is orgainized into           ═ Rasinski is located in the central part of Serbia, covers an area of
     six factories:                                                      2.668 km2 and has around 259.000 inhabitants.
           ═ Mivela (production of mineral water and syrup for fruit
           juices);                                                    ═ Rasinski county is strictly agricultural area. Total area of the land
           ═ Cooler (cooling, packaging and warehousing of fruits        used for agriculture is 160.000 ha, which represents over 60% of
           and vegetables);                                              the total area of the county.
           ═ Drier (processing and dehydratation of all kinds of       ═ Dominant economic production in the area is agricultural, that
           fruits and vegetables);                                       employs over 35% of the population in the county. Most common
           ═ Povit (production of spices and additives);                 plants are: grape-vine, early season vegetables, industrial and
           ═ Podrum (production of different kinds of wines) and         consumption vegetables and berry type of fruits.
           ═ Primary production (crops of vegetables and fruits, and
           other kinds of plants, breeding of catle and poultry).      ═ What makes agricultural products of Rasinski county so high-
                                                                         quality is actually highly fertile land in the valley of Morava river
   ═ In the sales structure, dominant share belongs to units Mivela      and extremely favorable climate and ecological conditions.
     (48%) and Cooler (40%).                                             Rasinski county is among 6 counties in Serbia per number of
   ═ The Company possesses the land in total area of 57 ha 75 a          orchards. Orchards in the county have a total area of 15.558 ha of
     71 m2. The area of land for construction is 29 ha, the area of      agricultural land. Vegetables are seeded on 14.654 ha.
     land for agriculture 10 ha and 18 ha is the total area of         ═ Rasinski county has the most vineyards of all counties in Serbia.
     channel for water supply. The Company has a right of                Total area of land under vineyards is 7.893 ha, that is 12% of total
     permanent use of the land.                                          area of the county.
   ═ Total area of objects in Company‟s ownership is 16.583,60         ═ Trstenik is located on the crossing of big roads that connect this
     m2. All immovable property owned by the Company is located          part of Serbia with all other parts. the city is located on the main
     in Trstenik and its nearest environment.                            road Pojate-Kraljevo, about 200 km far from Belgrade. In the
   ═ According to the last data from the Company, there are 145          valley of Zapadna Morava, through city, rail-road Stalać-Kraljevo
     full-time employees.                                                passes by.
                                                                       ═ In the radius of 100 km far from Trstenik are located all big
                                                                         centers of Central Serbia: Niš, Kruševac, Kraljevo, Kragujevac,
                                                                         Čačak and Novi Pazar.
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                                                                                                                                          3
Resources
                                                  Land
       Cadaste                   Organizational             Purpose of         Total
     municipality                       unit                 the land          area
   KO Trstenik                      head office            construction     4h 37a 34m 2
   KO Trstenik                   plant production          construction*   16h 79a 69m 2
   KO Trstenik                       butchery              construction        31a 27m 2
   KO Stari Trstenik              cattle breeding          construction     2h 89a 77m 2
   KO Tobolac                           mivela             construction     1h 23a 69m 2
   KO Veluće                            spring             agricultural        73a 65m 2
   KO D. Omašnica                      vineyard            agricultural     1h 46a 00m 2
                                                                                        2
   KO Lopaš                            vineyard            agricultural     2h 07a 60m
                                                                                       2
   KO Donji Ribnik                      heater             construction     2h 55a 09m
   KO Bogdanje                           forest               forest        7h 16a 45m 2
   Total                                                                   39h 60a 55m 2
   *This land is used as an orchard,
  ═ Beside stated, the Company possesses the land of total area of
    18h 15a 06m2 , where the channel for water supply of 14 km is
    built.

                                                Objects

                   Unit                         Area, m2         Roads and plateaus, m2
   Mivela                                       1.256,30                     1.100,00
   Drier                                        1.912,00                     1.370,00
   Cooler                                       3.375,00
                                                                             3.126,00
   Povit                                        1.785,00
   Podrum                                       3.039,30                     3.316,00
   Plant production                               480,00
   Butchery                                       537,00
   Catlle breeding                                900,00
   Head office and other                        3.299,00                     1.120,00
   Total                                       16.583,60                    10.032,00


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                                                                                            4
                             Excellence in advice, precision in execution




                 “NOVA SLOGA” d.o.o.
Factory for production of mineral water
                             “MIVELA”




                                           www.cesmecon.com
Mivela spring
                                          Exploatation field                                                   Quality

   ═ MIVELA spring is located in the area of village Veluće, in river-bed           ═ Physical and chemical nature of the mineral water from Veluće
     of Pasjačka river, at the altitude of 220 m. The first hydro geological          have been continuously followed from year 1971 by the
     researches are performed as early as on the begging of XX                        authorizes institutions of the republic of Serbia.
     century,                                                                       ═ MIVELA water from Veluće spring belongs to the group of
   ═ In the begging of the 70‟s, the first researches in the area of Veluće           pellucid waters, with no smell or color. The water has a bit sour
     river were performed with a goal to build a plant for production of              taste, as a consequence of presence of carbon-dioxide. The
     mineral water. Production and sale of mineral water MIVELA was                   value of pH index is 6,3 which indicates a weak acid
     begun by the Company NOVA SLOGA in 1985.                                         surrounding.

   ═ Based on the Analysis of reserves, the Ministry of mining and                  ═ Based on the results of hydro-chemical researches of the
     energy of the Republic of Serbia approved on September 28, 2004                  quality, this water is registered as hydrocarbon – magnesium –
     the right on exploitation of mineral water on the exploitation field             sodium type of water with biologically active elements. Based
     Mivela – Veluće, municipality Trstenik.                                          on the Rulebook on quality of natural mineral water (Official
                                                                                      Gazette no. 45/93), MIVELA water is natural mineral water.
   ═ The Company NOVA SLOGA is an exclusive user of
     exploitation right on the exploitation field Mivela - Veluće on                ═ In cation structure, ion of magnesium and sodium dominate,
     the area of 4.125 km2.                                                           while anion structure is dominated by anion hydrocarbon.

   ═ For exploitation purposes, during year of 2000, exploitation well              ═ All microelements are present within limits allowed for
     EBV-1/99 has been built with depth of 86 m. Capacity of the well is              production of drinking mineral water and satisfy criteria set up
     2,3 liters per second. According to the criteria from Rulebook on                in the Rulebook on quality of natural mineral water and the
     categorization and classification of underground waters reserves                 Rulebook on hygiene regularity of drinking water.
     and their record keeping, those quantities are recorded in the                 ═ According to the registered values of both alpha and beta
     balance of water reserves and are categorized as “B” category.                   radio-activity, they are both significantly bellow maximum
   ═ In the analysis, it is found that the spring is very powerful, and               limits, and therefore MIVELA water satisfies these conditions,
     stable. The water from this spring can be used for drinking bottled              too.
     water and water for production of non-alcoholic beverages.                     ═ Based on all results of laboratory examinations, that are in
        Note: The Company Nova Sloga started the process of acquiring an              accordance with the Rulebook on hygiene regularity of drinking
        extension of exploitation right and making of new Analysis of reserves in     water (Official Gazette FRY no. 42/98) and experts‟ opinion, it
        order to obtain new exploitation right. Those activities are in progress.     is concluded that MIVELA water from Veluće spring is
                                                                                      adequate for drinking from the point of health.


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                                                                                                                                                   6
Exploitation field - Mivela




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Mivela – Queen of water
                      Balneo-therapeutical characteristics
   ═ For decades known in public for its therapeutical characteristics,
     carbon acid natural mineral water MIVELA is branded as most
     noble natural mineral water.
   ═ With unique chemical structure, characterized by ideal ratio of
     minerals, high level of dissoluble Mg (350 mg/l), low level of Na
     (120 mg/l) and absence of metals, MIVELA possesses
     recognizable quality for more than 100 years.
   ═ Different from other mineral waters that are dominated by sodium,
     natural mineral water MIVELA is dominated by magnesium, whose
     level is 3-3,5 times higher that calcium.
   ═ “There exist 3 types of carbon-acid waters: most dominant is
     sodium-potassium (sodium-hydrocarbon). The only water that is
     magnesium hydrocarbon water is MIVELA. That is our best water,
     that has more than 350 mg of magnesium, and magnesium is in
     medicine famous for its favorable influence on heart” – prof. Ph. D.
     Milojko Lazić
   ═ One liter of MIVELA compensates daily needs for magnesium, and
     can be used by people that are suggested not to use mineral
     water.
   ═ Natural mineral water MIVELA is a starter of over 300 biochemical
     processes in the body of a human. It eliminates heavy metals,
     especially plumb, it regulates metabolism, enzyme processes and
     is excellent thermo-regulator. It helps in treating of high blood
     pressure, disturbances of heart rhythm as well as in cases of heart
     attacks and regulates level of sugar in blood.
   ═ MIVELA can be used as an additional ingredient while treating
     chronic diseases like: womb disturbances, sand in urinal flows and
     after operations of urinal and womb flows.


Excellence in advice, precision in execution
       Comparative overview of mineral waters

                                                                      Ingridients mg/l
      Water               Mineralization                                                                                              Formula
                                                      Ca+ -   Mg++    Na+ + K+     HCO3-   SO4--    Cl-    CO2-
                              (M)
                                                                                                                                                  3
   Knjaz Miloš                                                                                                                              HCO98
                                   1175               144     36,4      314         1329    14      7,2    3900   M1,175 CO32, 9
   Aranđelovac                                                                                                                         Na - K57 Ca30 Mg13
                                                                                                                                         3
     Minakva                                                                                                                       HCO54 Cl46
                                   1140               25,5    22,12   430+4,41      640      /     308      /          M1,14
     Novi Sad                                                                                                                    Na + K85 Mg8 Ca6
      Heba                                                                                                                          HCO3 SO7
                                                                                                                                         90
                                                                                                                                              4
                                   3290               51,65   9,96     1139,8       2900   178,2   55,95    /           M 3,29
    Bujanovac                                                                                                                      Na + K94 + Ca 5
   Voda Vrnjci                                                                                                                 2
                                                                                                                                                3
                                                                                                                                          HCO88 SO94
                                    743                48     38,3      172         688     57      10     2500   M 0 , 743 CO
  Vrnjačka banja                                                                                                                       Na + K57 Mg24 Ca18
                                                                                                                               2, 5

                                                                                                                                           3
      Mivela                                                                                                                          HCO98
                                   1583               28,5    325     128+5,7       2057    <2     17,6     /           M1, 58
      Veluće                                                                                                                       Mg79 Na + K17
                                                                                                                                           3    4
   San Pellegrino                                                                                                               HCO72 SO18 Cl11
                                    144                33      6,2      6,3         108    21,1     9,1     /       M 0,144
        Italy                                                                                                                 Ca68 + Mg21 Na + K11
      Perrier
                                                                                                                                           3
                                                                                                                                      HCO83 SO94 Cl8
                                  432,3               147,3    3,4      9,0         390     33     21,5     /          M 0 , 432
      France                                                                                                                          Ca92 + Na + K5

═ From this comparative analysis, we can see the quality of mineral water Mivela, that like no other water has an adequate ratio and
  allocation of marcoelements Mg, Ca and Na. High level of Mg satisfies recommended daily usage. Taking into account well-known
  favorable effect that Mg has on processes in the human body, mineral water Mivela has medical values also.




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Factory for production of mineral water
                                               Objects                                       Capacity and equipment
  ═ Factory for production of mineral water MIVELA, that operates as        ═ Actual capacity of the spring is 2,3 l/s and it is sufficient for the
    an organizational unit of the Company NOVA SLOGA, has been                capacity of filling factory. This capacity can be expanded on
    built in 1984.                                                            the current location.
  ═ Unit for production of mineral water MIVELA is located in the village   ═ If there is a need for an increase in quantity, it can be achieved
    Tobolac around 15 km far from Trstenik. It directly connected to the      by simple installation of pump. The capacity of the spring in
    main road Kraljevo – Kruševac with a local road 8km long.                 that case would be around 10 liters per second.
  ═ Factory complex MIVELA is located on the agricultural land, with        ═ After the construction of the well EBV-1/99, in year 2000, the
    total area of 1ha 23 area 69 m2. On that location, there are several      Company conducted preliminary testing of water supply. test
    built object with total area of 1.256,30 m2.                              has been conduct on 3 levels, and measuring of water supply
                                                                              for 36 hours.
  ═ Most significant objects of MIVELA unit are: the facility for mineral
    water filling with area of 600 m2 and a warehouse for finished                       results of the test on the well EBV - 1/99
    goods with area of 500 m2.
  ═ In the area of the factory, there are roads and plateaus with total
                                                                                     Level        Depression S (m)           Flow Q (l/s)
    area of 1.100 m2 that allows free movement of vehicles.
                                                                                        I              15,46                     7,74
  ═ The spring of mineral water MIVELA is located around 900 m from
    the factory, with total area where the spring is located is around                  II             20,10                     9,95
    6.000 m2. Mineral water is being transported from Veluće spring to                 III             25,62                    12,83
    the filling facility.
                                                                            ═ Actual capacity of the well, is sufficient for filling of 7.000 liters
  ═ Based on the previously stated examinations, during 1999 and              per hour. Installed machines for filling and packaging of 1.100
    2000, there was built exploitation well EBV-1/99 with depth 86 m. In      bottles per hour, i.e. 2.200 liters per hour. Actual capacity of
    this way the Company got extra quantities of mineral water.               production, enables the Company to produce around
  ═ Around the well, there exists first zone of sanitary protection. The      10.560.000 liters annually.
    well is protected from physical threats for water‟s structure.          ═ The Company owns tanks for warehousing of natural mineral
                                                                              water. Total capacity of the tanks is 25.000 l.
                                                                            ═ The Company possesses 6 freight trucks for distribution of
                                                                              goods for sale.



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                                                                                                                                               10
Protected exploitation field of the Mivela
spring




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Mivela’s market position
                                                Mivela factory                                                  Market perspective
                                               ═ In Mivela factory, the Company is            ═ In accordance to the European experience, Serbia also has a
                                                 producing mineral water and syrups for         problem with limited resources of quality water.
                                                 fruit juices.
                                                                                              ═ In the period from 1999 to 2006 Serbia had an average growth
                                               ═ The Company is producing low gas and           of sales of mineral water per year 12%, which outperforms
                                                 gas mineral water.                             global growth.
                                               ═ Natural mineral water MIVELA is bottled in   ═ Following factors influenced significant        increase     of
                                                 PET packaging 0.5l, 1.5l, 2l, 3l and 5l.       consumption of bottled water in Serbia:
   ═ Due to significant structural changes in the Company and lack of                             ═Unreliable quality of savage water
     working capital, the Company did not succeed to take advantage
                                                                                                  ═Higher consumer‟s awareness of bottled water advantages.
     of spring potential and extreme quality of Mivela water.
                                                                                                  ═Better living standard.
   ═ In the period from 2001 to 2006, average yearly sale of MIVELA
     water was 4,4 million liters. Besides mineral water, the Company                         ═ With total share of 51% bottled water dominates total
     also sold small amount of syrups for fruit juices.                                         consumption of non-alcoholic beverages.
                                   Total sales of Mivela factory                              ═ Actual biological and hydrological analysis of mineral water
        Product            Unit       2001          2002     2003    2004     2005     2006
                                                                                                MIVELA imply water‟s enormous potential for commercial
                                                                                                purposes.
    Mivela 1,5 liters pcs. 1.207.184 1.140.279 1.108.099 203.078
    Mivela 0,5 liters pcs.                                  49.956   39.808    51.548         ═ Future brand position of MIVELA water is determined by:
    Mivela 2 liters pcs.                                 1.062.560 848.079 857.985
    Mivela 3 liters pcs.                33.333 203.001      84.190   12.348                       ═Demand potential- was never a limiting factor for the sales
    Mivela 5 liters pcs. 137.789 743.969 703.479 602.563 326.696 357.173                          of MIVELA water.
  Total MIVELA          l 2.499.721 5.530.263 5.788.547 5.720.100 3.386.586 3.527.609             ═Market condition-above average        increase   of    water
    Syrup 1 liter     pcs.    13.691    16.742    19.779     3.484
                                                                                                  consumption in Serbia is expected.
  Total syrup           l     13.691    16.742    19.779     3.484
                                                                                                  ═Serbia‟s relatively lower consumption per capita compared
   ═ Main market for MIVELA mineral water is Belgrade with total of                               to countries in the region, implies potential for growth of
     50% share in Company‟s sales, then 30% in places around the                                  water consumption.
     factory up to 50km) and 20% on all other areas in Serbia.




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                                                                                                                                                           12
           Excellence in advice, precision in execution




“NOVA SLOGA” d.o.o.
      Other factories




                         www.cesmecon.com
Other factories
                                         Cooling factory                                               Drier
   ═ Building of cooling factory, total area of 3,375 m2, is located in   ═ Drier factory is located in inhabited place Počekovina, 8km
     Company‟s complex in Trstenik. Cooler has on disposal                  away from the HQ of the Company, by the main road Trstenik-
     storehouses for deep cooling on -20ºC capacity of 1.200 t and          Kruševac.
     warehouse capacity on 0ºC capacity of 1.300 t.
                                                                          ═ Drier complex is spread on the total area of land of 2ha 55a 09
   ═ Processing capacities of the Cooler can store up to 50 tons of         m2. It is composed of several buildings with total area of 1.912
     fruit and vegetable. In the period from 2001 to 2006 cooler            m2, from which production halls comprise 1,160 m2. In the
     factory produced a yearly average of 1,070 tons. Main products         compex area there is also warehouse with total area of 500 m2
     are frozen raspberry, cherry and blackberry.                           and administrative building area of 140 m2.
   ═ Fruits and vegetables processed by the Company mainly                ═ Inside drier complex there is also infrastructure which allows
     derives from Trstenik area and areas of Rasinski county.               free movement of vehicles.
     Cooling factory of NOVA SLOGA company comprises 20% of
                                                                          ═ Drier factory capacity for drying of vegetables is around 35 tons
     total cooling capacities in Rasinski county.
                                                                            of raw marterial, which on average produces 3 tons of dry
   ═ In the last 5 year period capacity utilization was‚ on average         vegetable. Installed drying capacity is around 20 tons, which
     96%.                                                                   makes 4-5 tons of dry fruit for 24 hours.
                   Capacity utilization of the Cooler
                                                                          ═ Besides fruits and vegetables, drier factory also performs
    140%
                                                                            dehydration of forrest fruits(dog-rose and mushrooms) and
    120%                                                                    curative plants (linden tree, camomile, mint).
    100%                                                                  ═ Most of drier‟s production is used internally for production of
                                                            120%            Povit spice, but drying is also performed for other producers.
     80%
                                        129%                                Company performed drying of vegetables until 2003 most
     60%                                                                    prominent domestic producer of spices Centro proizvod.
     40%                                          73%                     ═ Surrounding of the drier factory is very productive for nurture of
                     90%
                                                                   70%
                                                                            vegetables, and represents           great source of          raw
     20%
                                                                            materials.Thanks to the installed capacities, in the period of
       0%                                                                   most intense operation of drier factory, raw materials are
                    2002                2003     2004       2005   2006     acquired from complete teritorry of Serbia.
Notice: Caoacity utilization is based on deep frozening capacity




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                                                                                                                                            14
Other factories
                                               Povit factory                                             Primary production
                                    ═ Povit factory produces „‟Povit‟‟ spice, and     ═ Primary production includes plant production, cattle breeding
                                      factory also performs packaging of different      and butchery..
                                      powder and kernel products.
                                    ═ Povit factory is located inside Company‟s                                    ═ The Company possesses fertile
                                      complex in Trstenik, and factory includes                                      land, located in Trstenik, on the
                                      three production halls with total area of                                      west bank of Morava river, with
                                      1.785 m2.                                                                      total area of 16 ha apple
                                                                                                                     orchards and 3,5 ha of
                                    ═ Installed capacity of the factory is 1,000                                     vineyards.
                                      tons of powder and kernel products per
                                      year in one shift (8 hours).

                               Wine production factory                                ═ Beside fruits and grapes, plant production contains material for
                                                                                        further seedling. On this location, beside orchard, there are
                                     ═ Wine      production    factory   performs       several objects constructed for warehousing with total area of
                                       production and packaging of white, red and       480 m2.
                                       rose wine and other alcoholic liquors. It is
                                       located in Trstenik and represents part of     ═ Objects for cattle breeding are located only 5 km from the
                                       the Company‟s complex. Wine production           mineral water spring. Due to bad economic situation, this object
                                       factory is consisted of several buildings        was closed in 2000. This location could be one of the
                                       with total area of 3.039 m2.                     alternative location for construction of the new factory for
                                                                                        mineral water. This location is near to the main road and power
                       ═ Wine factory owns equipment which can                          level line.
                          perform complete process of production of
                          wine – from reception of fruits until final                 ═ The objects for butchery have a total area of 620 m2, they are
                          product.                                                      located in Trstenik near to the orchard. The butchery mainly
    ═ Wine factory possesses two lines for primary processing of                        serves for meat supply of shops and hotel Vrnjačka banja.
      grapes with total capacity of 30 t/h and line for filling with total            ═ Butchery, depending on its need, has a capacity of 20 heads of
      capacity of 1.500 bottles/h. The factory also has own distillery                  cattle in one shift. With acquisition of adequate equipment, it
      with total capacity of 50 tons per day. Wine seller has a                         would also possible to perform meat sorting per categories.
      capacity for warehousing of 7.000 t.                                              Separate premise for this purpose already exist.
    ═ Beside wine, installed equipment can be used for production of                  ═ Butchery has operating license, as well as own stamp for meat
      different kinds of fruit liquor.                                                  labeling.

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                                                                                                                                                      15
           Excellence in advice, precision in execution




“NOVA SLOGA” d.o.o.
   Financial overview




                         www.cesmecon.com
Financial overview
                                           Balance sheet
                                                                                     2006                           2005                             2004
                                     ITEM
                                                                        RSD 000     EUR 000     %       RSD 000    EUR 000    %       RSD 000       EUR 000    %

  NON-CURRENT ASSETS                                                     241.929       3.062   89,6%     257.084      3.007   87,7%    268.299         3.401   89,6%
  INTANGIBLE ASSETS                                                            0           0    0,0%           0          0    0,0%          0             0    0,0%
  PROPERTY, PLANT, EQUIPMENT AND BIOLOGICAL ASSETS                       240.707       3.047   89,2%     252.509      2.953   86,2%    263.725         3.343   88,0%
  LONG TERM FINANCIAL INVESTMENTS                                          1.222          15    0,5%       4.575         54    1,6%      4.574            58    1,5%

  CURRENT ASSETS                                                          27.953        354    10,4%      35.900       420    12,3%     31.283          397    10,4%
  INVENTORIES                                                              7.602         96     2,8%      10.272       120     3,5%     14.878          189     5,0%
  SHORT TERM RECEIVABLES, INVESTMENTS AND CASH                            20.351        258     7,5%      25.628       300     8,7%     16.405          208     5,5%
    Receivables                                                           19.598        248     7,3%      24.777       290     8,5%     14.364          182     4,8%
    Other                                                                    753         10     0,3%         851        10     0,3%      2.041           26     0,7%
  DEFERRED TAX ASSETS                                                          0          0     0,0%           0         0     0,0%          0            0     0,0%
                                                                                                                         0
  NON - OPERATING ASSETS                                                       0          0     0,0%          0          0    0,0%              0         0    0,0%

  TOTAL ASSETS                                                           269.882       3.416   100,0%    292.984      3.427 100,0%     299.582         3.798 100,0%
 OFF - BALANCE SHEET ASSETS                                                 1.038                            547                          4.782
  Note: Exchange rate RSD/EUR: 2006 - 79; 2005 - 85,5; 2004 - 78,885;




                                                                                     2006                           2005                             2004
                                     ITEM
                                                                        RSD 000     EUR 000     %       RSD 000    EUR 000    %       RSD 000       EUR 000    %

  EQUITY                                                                  96.422       1.221   35,7%     161.994      1.895   55,3%    221.094         2.803   73,8%

  LONG TERM RESERVES                                                           0          0     0,0%          0          0    0,0%           0            0    0,0%

  LIABILITIES                                                            173.460       2.196   64,3%     130.990      1.532   44,7%     78.488          995    26,2%
  LONG TERM LIABILITIES                                                   17.424         221    6,5%      17.967        210    6,1%      6.000           76     2,0%
   Long term loans                                                        17.424        221     6,5%      17.967        210    6,1%      6.000           76     2,0%
   Other long term liabilities                                                 0           0    0,0%           0          0    0,0%          0            0     0,0%
  SHORT TERM LIABILITIES                                                 156.036       1.975   57,8%     113.023      1.322   38,6%     72.488          919    24,2%
   Short term financial liabilities                                        4.129          52    1,5%       4.626         54    1,6%     15.460          196     5,2%
   Short term liabilities from operations                                 73.596        932    27,3%      72.114        843   24,6%     47.734          605    15,9%
   Other                                                                  78.311        991    29,0%      36.283        424   12,4%      9.294          118     3,1%
  DEFERRED TAX LIABILITIES                                                                      0,0%           0          0    0,0%          0            0     0,0%

  NON - OPERATING LIABILITIES                                                  0          0     0,0%          0          0    0,0%              0         0    0,0%

  TOTAL LIABILITIES + EQUITY                                             269.882       3.416   100,0%    292.984      3.427 100,0%     299.582         3.798 100,0%
 OFF - BALANCE SHEET LIABILITIES                                            1.038                            547                          4.782
  Note: Exchange rate RSD/EUR: 2006 - 79; 2005 - 85,5; 2004 - 78,885;
Excellence in advice, precision in execution
                                                                                                                                                                       17
Financial overview
                                       Income statement
                                                                                            2006                            2005                         2004
                                               ITEM
                                                                           RSD 000         EUR 000    %        RSD 000     EUR 000   %       RSD 000     EUR 000   %

    OPERATING REVENUES                                                           82.380        979   100,0%      75.917        921 100,0%     114.293      1.554 100,0%
     Sales revenues                                                               82.288       978     99,9%      80.673       979 106,3%      111.455      1.515  97,5%
     Other                                                                            92         1      0,1%      -4.765        -58  -6,3%       2.838         39   2,5%

    OPERATING EXPENSES                                                      143.584          1.707   174,3%     127.846      1.551 168,4%     141.132      1.919 123,5%
     Cost of goods sold                                                        8.751           104     10,6%       6.364        77    8,4%      11.236       153    9,8%
     Costs of material                                                        55.922           665     67,9%      51.420       624 67,7%        68.223       928 59,7%
     Costs of salaries, fringe benefits and other personal expenses           52.604           625     63,9%      42.557       516 56,1%        28.865       392 25,3%
     Depreciation                                                             11.846           141     14,4%      12.199       148 16,1%        12.524       170 11,0%
     Other operating expenses                                                 14.461           172     17,6%      15.306       186 20,2%        20.284       276 17,7%

    OPERATING RESULT                                                         -61.204          -727   -74,3%     -51.929       -630 -68,4%     -26.839       -365 -23,5%

    NET FINANCIAL RESULT                                                         -8.248        -98   -10,0%      -5.865        -71   -7,7%     -6.928        -94   -6,1%
    NON - OPERATING REVENUES                                                      8.298         99    10,1%       1.976         24    2,6%      1.856         25    1,6%
    NON - OPERATING EXPENSES                                                      4.418         53     5,4%       3.282         40    4,3%      4.287         58    3,8%

    PROFIT BEFORE TAX                                                        -65.572          -779   -79,6%     -59.100       -717 -77,8%     -36.198       -492 -31,7%

    CORPORATE TAX                                                                     0          0     0,0%           0          0   0,0%           0          0   0,0%

    NET INCOME                                                               -65.572          -779   -79,6%     -59.100       -717 -77,8%     -36.198       -492 -31,7%

    Note: Exchange rate RSD/EUR: 2006 - 84,139; 2005 - 82,4268; 2004 - 73,550;




Excellence in advice, precision in execution
                                                                                                                                                                           18
Contact

      Note:                           This document has been prepared by the Advisor of the Privatization Agency in cooperation with
                                      the Company NOVA SLOGA DOO, Trstenik and is based on sources and data given from the
                                      Company, for which we believe but cannot guarantee that are true, complete and/or precise.



      CES Mecon
      Danijelova 12-16
      Belgrade
      Tel: 011 3090 800;
      Fax: +381 11 3090 876

      Contact person:
      Marko Marjanovic
      Email: marko.marjanovic@cesmecon.com

      www.cesmecon.com




Excellence in advice, precision in execution
                                                                                                                                 19

								
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