COMPANY PROFILE

AGENCY CONTACT: Mrs. Aleksandra Jezdovic Ignjatovic E-mail: ajezdovic@priv.rs Phone: +381 11 30 20 855 Fax: +381 11 30 20 816

JUGOREMEDIJAAD, ZRENJANIN
GENERAL INFORMATION
Main identification data:
Full legal name: Identification Number: Address: Foundation Year: Director: Contact Person: Number of Employees: Phone number: Fax number: E-mail address: Jugoremedija Fabrika Lekova, ad Zrenjanin 08000034 Panevaka bb, 23000 Zrenjanin 1961 Mr. Zdravko Deuri Mrs. Ankica Malui 467 023/ 559 500 023/ 541 615 jugoremedija@jugoremedija.rs

Capital structure (%)

Capital Structure Socially owned State owned Share holders fund PIO Fund Cooperative Private % of the total capital 41,92363 31,95600 9,96763 58,07637

Core operating activities

Activity Code: 2120 Main Activity: Production of pharmaceuticals

Distance from the Company (km) to:

Belgrade Regional Center Main road Port Railway 75 80 55 80 4

Associated Legal Entities:

Share of the Company in other legal entities equity Form of association Ownership Ownership % of share in total capital 100 74,815

Share of other legal entities in Companys equity Company name Form of association % of share in total capital

Company name Remevita Nova doo Luxol

PRODUCTION AND CAPACITY

Production of main products (quantities and value)
Product Trental 400 Daonil pill Enalapril pill 20mg Cilacil pill 20x1,2 mz Lasix pill 10x40 kg Enalapril pill 10mg Baralgetas amp Baralgetas pill Quantities Unit pack pack pack pack pack pack pack pack 2007 2.647.535 1.240.200 172.977 395.722 2.184.643 173.113 1.096.172 503.874 2008 4.009.326 2.781.989 776.753 360.353 3.873.294 484.876 1.980.009 1.007.168 2009 291.012 2.586.165 57.863 284.033 1.842.064 56.582 735.032 487.905 2007 325.022 75.893 39.463 106.869 49.286 26.671 66.413 58.429 Value in 000 RSD 2008 482.364 164.763 176.051 97.510 86.258 74.030 88.258 84.696 2009 41.335 181.598 13.707 82.351 53.183 9.052 40.758 55.237

Capacity utilization

Machine (Production line) GLATT/FETTA Trental GLATT/FETTA Daonil HUT/RONCHI Cllacil 1,2 TUN/EIS Baralgetas GLAT/FETTA Lasix

Unit

Installed capacity 216.000 216.000 50.000 12.000 216.000

Real capacity

2007 (%)

2008 (%)

2009 (%)

pill/h pill/h pill/h pill/h pill/h

52.250 62.500 17.000 11.000 62.500

51,16 16,18 12,65 14,44 9,50

77,31 36,29 11,52 26,09 16,84

5,62 33,73 9,08 9,68 8,01

The Company owns quality assurance certificate ISO 9001.

Main equipment (in 000 RSD)

Name Drying-room GLATT-WST-CD 200h Type and purpose Device for production of granules Device for shaping of pills Device for coating of pills Device for sterilization of ampoules Device for preparations Estimated state Qualified pursuant to pharmaceutic al regulations Qualified pursuant to pharmaceutic al regulations Qualified pursuant to pharmaceutic al regulations Qualified pursuant to pharmaceutic al regulations Qualified pursuant to pharmaceutic al regulations Qualified pursuant to pharmaceutic al regulations Qualified pursuant to pharmaceutic al regulations Year of production 1986 Purchase value 72.000 Amortized value Current value

Device for shaping of pills WILHELM FETTEPERFEKTA 2100 Device for coating of core GS-HT/M300

1990

28.000

1999

28.000

Sterilization tunnel STRUNCK-TLQU 42

1985

44.000

Device

1990

24.000

Cardboard machine

Device for packaging of preparations Device for joint packaging of preparations

1990

36.000

Grinding machine

1986

6.400

Land and Buildings

Name and type of land Construction land Plateaus Parks LAND TOTAL Purpose Surface m2 17.534,14 4.451,25 50.706,61 72.692,00 Surface m2 9.250,00 1.921.00 5.153,00 520,50 16.844,5

Name and type of building Production facilities Administration buildings Warehouses Power block BUILDINGS - TOTAL

Purpose

Ecology
The Company is in compliance with all ecology regulations, prescribed by the Law.

REALIZATION
Movement in sale volume
Product Trental 400 obrt Lasix pill 10x40 mg Daonil pill 30x5 mg Enalapril pill 20x20 mg Aminofilin ret. pill Value in 000 RSD 2008 504.083 88.704 202.460 175.817 61.187

2007

2009 79.742 61.179 110.919 9.412 69.750

248.656 49.078 53.567 67.754 8.612

Enalapril pill 20x10 mg 48.895 74.106 9.698 Cliacil pill 20x1,2 inj 93.854 100.579 *82.875 TOTAL 570.416 1.206.936 423.575 * Note: According to the decision no. 515-04-2606/2005-05, production of penicillin preparations is prohibited. The above sale was related to the existing stock. In future, the production of penicillin preparations in the existing facility cannot be expected. The relocation of space and equipment is necessary

Sale structure
Sale structure in % Domestic market Foreign market Total 2007 85 15 100% 2008 87 13 100% 2009 77 23 100%

Distribution channels
Distribution channels Direct sale Wholesale Retail Intermediaries 99.9 0.1 % share

ORGANIZATION, MANAGEMENT AND EMPLOYMENT

GENERAL MANAGER AND OFFICE OF THE GENERAL MANAGER

PRODUCTION DEPARTMENT

QUALITY CONTROL

QUALITY ASSRANCE

GENERAL AFFAIRS

SALE DEPARTMENT

FINANCIAL SECTOR

Number of Employees as of 31.12.2009.:

Working Paid leave Unpaid leave Other (sick leave, vacation, etc.) Total number of employees 405 / / 27 432

Age structure of employees

Age Number -25 8 25-35 123 35-40 58 40-45 63 45-50 69 50-55 65 55+ 46

Average salaries (gross and net) in 2007, 2008 and 2009.

Year 2007 2008 2009 Gross 39.393,68 45.503,95 46.914,55 Net 28.219,97 32.546,02 33.596,44

SWOT ANALYSIS
Strengths:

Drugs in the application of various therapeutic areas Strong potential for local development (Vojvodina, Serbia); Strong export opportunities; licensed agreements Aventis; No competition in several pharmacological groups of drugs; Groups of drugs intended for chronic patients have the highest demand in the market

Opportunities:

Completed factory and the introduction of GMP standards as a condition for export; Privatization for better position; The increase in demand for generic drugs

Weaknesses:

Insufficient development of marketing network of associates against the competition Lack of OTC medicines in the range

Threats:

Poor development of the pharmaceutical market

FINANCIAL INDICATORS
BALANCE SHEET (in EUR 000) Cash and equivalents Short-term operating receivables Profit tax return Short-term financial investments Inventories Fixed assets intended for sale and assets related to suspended operations VAT and accrued revenues Deferred tax assets Current assets Subscribed capital unpaid Goodwill Intangible assets Fixed assets Long term investments Non-current assets Loss above equity (Loss for 2003) TOTAL ASSETS Off-balance sheet assets 31.12.2007. 3,275 3,492 0 381 17,444 0 832 108 25,533 0 0 554 9,248 1,643 11,445 31.12.2008. 1,449 1,552 0 799 13,321 0 1,654 197 18,972 0 0 48 12,624 1,374 14,046 31.12.2009. 14 938 287 499 11,501 435 2,053 15,729 626 17,659 1,074 19,359

36,977 623

33,018 7,492

35,088 14,644

Suppliers Short-term financial liabilities VAT liabilities and other public revenues Liabilities based on assets intended for sale and assets related to suspended operations Other short-term liabilities and accrued costs Profit Tax liabilities Total short-term liabilities Long-term borrowings Deferred tax liabilities Other long-term liabilities Total long-term liabilities Long-term provisions Initial and other capital Subscribed capital unpaid Reserves Revaluated reserves Non-realized profit based on securities Non-realized losses based on securities Retained earnings Loss Treasury shares Total equity TOTAL EQUITY AND LIABILITIES Off-balance sheet liabilities

13,910 1,101 209

7,031 3,802 80

5,535 4,600 28 472 1 10,636 8,334 8,334 -

196 742 16,158

256 11,169 2,098

887 887

2,098

4,717 5,097 147

4,219 4,558 163

3,898 4,212 -

9,970

10,899 88.3286 19,750 33,018 7,492

9,940 1,933 16,117 35,088 14,644

19,932 36,977 623

Note: The highlighted parts of the balance sheet are items prescribed by the regulations as of the 2008 balance sheets.

INCOME STATEMENT (in EUR 000) 2007 Sale incomes Changes in inventories Other operating income OPERATING INCOMES Costs of goods, material and services Wages, salaries and other personal indemnities Depreciation costs Other operating expenses OPERATING PROFIT/ OPERATING LOSS Financial incomes Financial expenses Other incomes Other expenses PROFIT / LOSS FROM REGULAR BUSINESS OPERATIONS BEFORE TAXATION NET PROFIT SUSPENDED NET LOSS SUSPENDED PROFIT / LOSS BEFORE TAXATION Tax expenses for the period Deferred tax expenses for the period Deferred tax income for the period Personal earnings paid to employer NET PROFIT / NET LOSS 6,532 2,673 63 108 (79) 7,453 984 3,009 444 11,406 2,560 25 13,991 7,436 4,040 1,017 1,900 (403) 345 675 12,111 3,846 7,532 2008 18,937 623 7 19,567 11,114 3,617 965 1,753 2,118 798 3,175 4,458 1,193 3,006 3 2009 6,202 (212) 33 6,023 2,783 3,140 1,010 1,330 (2,241) 316 1,978 588 503 (3,818) (65) (3,883) 1 1,910 (1,972)

NET PROFIT DUE TO MINORITY INVESTORS NET PROFIT DUE TO OWNERS OF THE PARENT LEGAL ENTITY INCOME PER SHARE Initial income per share Decreased income per share

LOCATION OF THE ENTERPRISE

Jugoremedija, Zrenjanin

A) Information contained in this document is based on the data received from the company, and as such has not been verified by the Privatization Agency. Accordingly, the Privatization Agency shall have no liability with respect to the accuracy and validity of the information contained herein. B) Pursuant to the law, enterprises from the Republic of Serbia were obliged as of 2004 to prepare Financial Statements in accordance with the International Standards of Financial Reports (ISFR). C) For the indicated periods, commercial exchange rate has deviated from the official exchange rate. Commercial exchange rates used for calculating the above stated financial statements were as follows: Income Statement was calculated by using the median annual exchange rate. 2009: 1EUR = 93.9366 RSD; 2008: 1 EUR = 81.4672 RSD; 2007: 1 EUR = 79.9640 RSD. Balance Sheet was calculated by using the exchange rate valid on 31. December of the indicated year. 2009: 1 EUR = 95.8888 RSD; 2008: 1 EUR = 88.6010 RSD; 2007: 1 EUR = 79.2362 RSD.