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LETTER OF THE MANAGEMENT BOARD
INTRODUCTION
Financial Highlights
Company Profile
General Information
Organisation
Corporate Governance
General Meeting
Supervisory Board
Management Board
History
BUSINESS REPORT
Mission, Vision, Strategic Goals, and Quality Policy
Our Mission
Our Vision
Strategic Goals
Quality Policy
Key Business Events in 2007
Economic Environment
Financial Operations and Financial Risk Management
Analysis of Business Performance
Toll Collection
Completed Construction and Reconstruction Works on Motorway Sections
Revenue of DARS d.d.
Expenses of DARS d.d.
Profit
Business Activities of the Company
Corporate Affairs Division
Internal Audit Department
Purchasing Department
Communications Department
Business Division
Road Planning, Development and Management Department
International Cooperation Department
General Affairs Department
Occupational Health and Safety Department
Legal Affairs, Organisation and Human Resources Division
Legal Affairs Department
Organisation and Human Resources Department
Finance and Marketing Division
Finance, Accounting and Controlling Department
Sales and Marketing Department
Toll Collection Division
Motorway Construction and Reconstruction Organisation Division
Spatial Planning Department
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Planning and Design Documents Department
Construction Organisation and Supervision Department
Reconstruction Organisation Department
Public Procurements Department
Motorway Maintenance Division
Technology and Intelligent Transport Systems (ITS) Maintenance and Development Department
Telecommunications Project and Telecommunications Department
Traffic Surveillance and Management Department
Information Technology Department (IT)
Motorway Maintenance Department
Environmental Management
Environmental Protection
Human Resources Management
Staff Age and Education Structure
Training
Human Resources Management in 2007
Outlook for the Future
Implementation of the Motorway Construction Program
Motorway Management and Maintenance
Development of New Services
FINANCIAL REPORT
Notes to the Financial Statements
Agreement on the Performance of Contracts
Concession Agreement
Accounting Policies
Valutation Methods Applied to the Company-Owned Balance Sheet Items
Intangible Assets
Property, Plant and Equipment
Depreciation / Amortisation
Long-term Investments
Deferred tax assets
Inventories
Short-term investments
Short-term Operating Receivables
Cash
Equity
Provisions and long-term accrued costs and deferred revenue
Short-term Operating Liabilities
Short-term Accrued and Deferred Items
Mutual Relations Between the State and the Company
Revenue
Expenses
Income Tax
Cash Flow Statement
Valutation Method Applied to the State-owned Balance Sheet Items under Management
Property, Plant and Equipment under Management
Short -term Investments in other Entities
Short -term Operating Receivables
Cash
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Mutual Relations Between the State and the Company
Provisions and Long-term Accrued Costs and Deferred Revenues
Long-term Financial Liabilities to banks Arising from Borrowings to Acquire Property,
Plant and Equipment under Management
Long-term financial liabilities from bonds issued to finance the acquisition of property,
plant and equipment under management
Long-term Operating Liabilities Arising from State-owned assets under Management
Long-term Operating Liabilities Arising from Municipality-owned Assets under Management
Short-term Financial Liabilities to Banks
Short-term Trade Payables
Financial Statements of DARS d.d.
Consolidated balance sheet as at 31 December 2007
Income statement of DARS d.d. for the period from 1 January to 31 December 2007
Consolidated cash flow statement for the period from 1 January to 31 December 2007
Statement of changes in equity in the period from 1 January to 31 December 2007
Statement of changes in equity in the period from 1 January to 31 December 2006
Statement of accumulated profit and proposed appropriation
Notes to the Financial Statemants
Notes to the balance sheet of DARS d.d.
Balance sheet of DARS d.d. as at 31 December 2007
Intangible assets
Property, plant and equipment
Long-term investments
Deferred tax assets
Inventories
Short-term investments in other entities
Short-term operating receivables
Cash
Deferred costs and accrued revenue
Receivables from the use of company-owned assets to finance state-owned assets under management
Off balance sheet items
Equity
Provisions and long-term accrued costs and deferred revenue
Short-term operating liabilities
Short-term accrued costs and deferred revenue
Notes to the balance sheet of state-owned assets and liabilities under management
of the Company
Balance sheet of state-owned assets and liabilities under management as at 31 December 2007
Property, plant and equipment and intangible assets under management
Short-term investments
Short-term operating receivables
Cash
Off balance sheet items
Long-term accrued costs and deferred revenue
Long-term financial liabilities under bank borrowings for acquisition of property,
plant and equipment under management
Long-term liabilities from bonds
Long-term operating liabilities for state-owned assets under management
Long-term operating liabilities from municipality-owned assets under management
Long-term operating liabilities from other assets under management
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Short-term financial liabilities from borrowings for the acquisition of property,
plant and equipment under management
Short-term trade liabilities
Liabilities from the use of company-owned assets to finance state-owned assets under management
Additional disclosures in the income statement of DARS d.d.
Net sales
Other operating revenue
Costs and operating expenses
Costs of materials and services
Labour costs
Writedowns
Other operating expenses
Financial revenue
Financial expenses
Other revenue
Other expenses
Income tax
Net profit for the period restated by use of the cost of living index
Performance ratios
Events after the Balance Sheet Date
Audit of the 2007 Annual Report under the Contract
Statement of Management Responsibility
AUDITOR'S REPORT
STATEMENT OF CORPORATE GOVERNANCE
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LETTER OF THE
MANAGEMENT BOARD
A Year of Growth
The year 2007 was above all a turbulent year for DARS d.d., marked not only by the transition to a new organisational structure, but
also by the changeover to a new currency and major changes in the management of the Company. DARS d.d. confronted these changes,
numerous challenges and new tasks, concluding the financial year successfully in all areas of its operations.
In the 2007 financial year, the Company recorded a 15-percent growth of revenue from toll collection, and successfully managed to
reduce expenses while increasing the concession tax primarily intended for the repayment of liabilities arising from borrowings to
finance motorway construction in accordance with the Concession Agreement (concluded with the Republic of Slovenia) by as much
as 19 percent. Revenue growth was also registered in the majority of other business areas. The highest growth was generated in the
segments of sales revenue, which the Company managed to increase by 586 percent in one year, revenue from easements, which
increased by 142 percent, and other revenue. Further, the Company generated its first revenue from the lease of telecommunication
lines, which it had begun to market in the previous year and represents one of the Company’s major development opportunities in
future.
Despite the fact that only 5.7 kilometres of roads under the National Motorway Construction Programme were put into service in the
previous year, the scope of construction works under way in that year was the most extensive in the history of motorway construction
in Slovenia, worth an awesome EUR 609.5 million. Construction works were in progress on altogether more than 160 kilometres
of motorways, expressways, and other roads under the National Motorway Construction Programme, and exceeded the planned
construction of new motorway sections by a full seven percent.
One of the Company’s fundamental goals as the operator of the Slovene motorway network is to increase the level of traffic safety on
Slovene motorways. A major project being implemented in this area by the Company, together with the Police and the Slovene Road
Safety Council, is the installation of housings for stationary speed meters. Given that these meters have proven to be a positive step
towards reducing the speed of driving and thus increasing traffic safety on Slovene motorways, the project was continued in 2007.
Adequate traffic safety, however, also requires adequately maintained infrastructure, and the Slovene motorway network is aging and
deteriorating with each passing year. The Company has therefore established a Road Management Department and thus opted for an
integral approach to the planning the rehabilitation of carriageways through the optimal use of funds. The above-mentioned, as well as
our awareness of the significance of performing timely reconstruction works, were some of the reasons why 2007 was also a record
year by the volume of reconstruction works. Thanks to excellent planning, these were successfully completed with the least possible
impact on traffic fluency.
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With each passing day, the Slovene motorway network is acquiring its final appearance. As a result, the Company is facing new
development challenges - the greatest since 1994, when it began to implement the National Motorway Construction Programme. We
are convinced that we will rise to these challenges and know how to take advantage of and outline the new development dimensions of
the Company, which in future will continue to be a successful and responsible commercial company.
Tomislav Nemec, President of the Management Board
Dr. Žan Jan Oplotnik, Deputy President of the Management Board
Boštjan Rigler, Member of the Board
Aleš Hojs, Member of the Board
Alojz Ratajc, Member of the Board — Workers’ Director
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INTRODUCTION

Financial Highlights
2007 2006
Share capital EUR 212,823 EUR 212,819
Total equity as at 31 December EUR 49,023,704 EUR 40,295,545
Total assets as at 31 December EUR 5,127,370,135 EUR 4,645,562,033
Ownership Fully (100%) owned by the Fully (100%) owned by the
Republic of Slovenia
Republic of Slovenia
Share ownership structure Fully (100%) owned by the Fully (100%) owned by the
Republic of Slovenia
Republic of Slovenia
Net profit for the year EUR 10,504,137 EUR 4,158,963
Completed motorway construction
and reconstruction works*
EUR 609,510,986 EUR 542,870,447
Total length of motorways and other
roads opened for traffic:
- motorways (2 by 2 lanes) 0.0 km 7,8 km
- enlargement into 2 by 2-lane motorway 2.4 km 0,0 km
- expressways (2 by 2 lanes) 2.3 km 0,0 km
- other roads 1.2 km 1,7 km
- link roads 0.0 km 2,0 km
Total length of motorways managed
and maintained as at 31 December
525,398 km 521,783 km
Total length of roads managed
and maintained as at 31 December:
- motorways and expressways 438,245 km 436,992 km
- junctions 13,351 km 13,351 km
- connecting roads 9,297 km 8,550 km
- link roads 128,592 km 127,019 km
- tunnels 17,958 km 17,200 km
Staff count as at 31 December 1,128 1,106
* Note:
Completed motorway construction and reconstruction works applies to completed works and liabilities from loans and bonds under the
provisions of the »Agreement on the performance of tasks relating to motorway construction and reconstruction, financial engineering and
related tasks under the National Motorway Construction Programme«.
The values of completed construction and reconstruction works include VAT.
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Company Profile
General Information
Company name
Abbreviated name
Registered office
Družba za avtoceste v Republiki Sloveniji d.d.
(Motorway Company in the Republic of Slovenia)
DARS d.d.
Phone 03/426-40-71
Fax 03/544-20-01
Ljubljana branch office
Ulica XIV. divizije 4, 3000 Celje
Dunajska 7, 1000 Ljubljana
Phone 01/300-99-00
Fax 01/300-99-01
E-mail
Web address
info@dars.si
www.dars.si
Incorporated District Court of Celje, entry no. 10615800
Registration number 5814251
VAT identification number
SI92473717
Share capital EUR 212,823.00
Management Board
M.Sc. Tomislav Nemec, President
Ph.D. Žan Jan Oplotnik, Deputy President
Boštjan Rigler, Member
Aleš Hojs, Member
M.Sc. Alojz Ratajc, Member — Workers’ Director
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Organisation
The organisation of the Company is based on three basic activities (organisation of motorway construction
and reconstruction, toll collection, and regular motorway maintenance) and several business functions
(financial engineering, marketing of services, information on road conditions, traffic surveillance and
management on motorways, etc.).
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Corporate Governance
The managing bodies of the Company are: the General Meeting, the Supervisory Board and the
Management Board.
General Meeting
The Government of the Republic of Slovenia acts as the General Meeting of DARS d.d..
Supervisory Board
In line with the Motorway Company in the Republic of Slovenia Act (ZDARS — UPB1; Official Gazette of
the Republic of Slovenia, no. 20, of 4 March 2004), the Supervisory Board is comprised of six members
appointed by the General Meeting of the Company. Two members are proposed by the Ministry of Finance,
two members are proposed by the Ministry of Transport, and two members are proposed from among
employees in line with the Worker Participation in Management Act.
On 28 December 2006 the Articles of Association of the Company were amended, whereby the number
of members of the Supervisory Board was enlarged from six to nine members.
At the end of 2007, the Supervisory Board of the Company was comprised of the following members:
• Franc Slak, President
• Ph.D. Tomaž Vidic, Deputy President
• Robert Sever, Member
• Simon Ošo, Member
• Franc Capuder, Member
• Vito Meško, Member
• Dimitrij Likar, Member
• Darko KodriË, Member
• Zvonko IvanušiË, Member.
After the amendment of the Company’s Articles of Association, the Workers’ Council elected at its meeting
held on 6 February 2007 Dimitrij Likar as the representative of employees in the Supervisory Board of
the Company.
On 30 August 2007 the Government of the Republic of Slovenia recalled Dr. Peter VerliË after receiving
his letter of resignation, and in his place appointed Robert Sever.
On 16 October 2007 the Government of the Republic of Slovenia appointed Dr. Tomaž Vidic and Simon Oš
as members of the Supervisory Board.
On 22 November 2007 the Workers’ Council elected Darko KodriË as its new member in the Supervisory
Board replacing Alojz Ratajc, who was relieved of his post in the Supervisory Board after being appointed
to the Management Board (Workers’ Director) pursuant to a decision of the Government of the Republic
of Slovenia adopted on 22 November 2007.
After receiving Helena Kamnar’s letter of resignation from the post of member of the Supervisory Board,
the Government of the Republic of Slovenia adopted a resolution on her resignation on 12 December
2007. Franc Capuder was appointed to the vacated post.
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Management Board
As laid down in the Company’s Articles of Association adopted on 28 December 2006, the Management
Board of DARS d.d. is comprised of up to 5 members, one of whom is the Workers’ Director. In accordance
with the Motorway Company in the Republic of Slovenia Act (ZDARS) and the Company’s Articles of
Association, the members of the Management Board of DARS d.d. are appointed by the Government of
the Republic of Slovenia on the proposal of the Supervisory Board.
At the end of 2007, the Management Board of the Company was comprised of the following members:
M.Sc. Tomislav Nemec, President
Ph.D. Žan Jan Oplotnik, Deputy President
Boštjan Rigler, Member
Aleš Hojs, Member
M.Sc. Alojz Ratajc, Member (Workers’ Director)
Until 25 October 2007 the Company had a three-member Management Board comprised of:
Rajko SiroËiË - President
Abdon Peklaj, Member
Aleš Hojs, Member
On 25 October 2007 the Government of the Republic of Slovenia recalled Rajko SiroËiË, President of the
Management Board, and Abdon Peklaj, Member of the Board. In their place, M.Sc. Tomislav Nemec was
appointed President of the Board, Ph.D. Žan Jan Oplotnik was appointed Deputy President of the Board,
and Boštjan Rigler was appointed Member of the Board. On 22 November 2007 the Government of the
Republic of Slovenia appointed M.Sc. Alojz Ratajc as Member of the Board (Workers’ Director). Aleš Hojs
retained his position as Member of the Board.
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History
The Motorway Company in the Republic of Slovenia Act was adopted in October 1993. On the basis of
this Act, the company »Družba za avtoceste v Republiki Sloveniji« (Motorway Company in the Republic of
Slovenia) was established in November 1993 and entered in the court register on 7 December 1993.
Until the end of 2003, DARS d.d. was a public company organised as a limited liability company. Its sole
founder was the Republic of Slovenia, represented by the Government of the Republic of Slovenia. DARS
d.d. provided financial engineering services, prepared, organized and conducted the construction and
maintenance of the motorway network, and operated motorways in the Republic of Slovenia in compliance
with the decisions of the National Assembly of the Republic of Slovenia.
In December 2003, the Government passed the Act Amending the Motorway Company in the Republic of
Slovenia Act, which regulates issues relating to the establishment, transformation and operations of the
Motorway Company in the Republic of Slovenia. The new company, DARS d.d., thus has the position of a
limited liability company operating as a commercial company under the Companies Act. The Company’s
sole founder and shareholder is the Republic of Slovenia, represented by the Government of the Republic
of Slovenia.
On 1st January 2004, the Motorway Company in the Republic of Slovenia was transformed from a
public company organised as a limited liability company into a regular commercial company which, on
the basis of a contractual relation with the State, organises and manages motorway construction and
provides financial engineering services on the one side, and, as a concessionaire, successfully operates
and maintains the motorway network and develops and markets new services on the other side. Following
the implementation of the above-mentioned Act, DARS d.d. absorbed the public company »Podjetje za
vzdrževanje avtocest, d.o.o.« (Company for Motorway Management and Maintenance) on 1 January
2004.
In 2006, a uniform Act on the organisation and classification of job positions was adopted and implemented,
thus completing the reorganisation of the Company after its transformation and the absorption of the
Company for Motorway Management and Maintenance in 2004. In August 2006, the first corporate
collective agreement of DARS d.d. was reconciled and signed.
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BUSINESS
REPORT

Mission, Vision, Strategic Goals, and Quality Policy
Our Mission
The mission of the Company is to organise and manage the construction and reconstruction of motorways,
conduct financial engineering activities, as well as to maintain and operate motorways in a manner
ensuring the safe, efficient and successful functioning of the motorway system. The Company invests
in the construction of new motorways in a manner ensuring that these are multiplicatively reflected to a
maximum degree in the immediate and broader environment. The Company’s development stems directly
from its mission, which is: to create links and possibilities for the most rapid and safe establishment of
traffic and economic flows.
The safe and efficient cross-border mobility of persons and goods should be provided in a manner that
respects the environment and the quality of life of the local population, and serves the public interest by
contributing to the development of the Slovene economy.
Our Vision
DARS d.d. must become a technologically developed, cost-effective and internationally competitive
company. The Company will strengthen its leading position in the development and operation of
motorways in the domestic market and, by offering integral and high-quality services, solidify its position
as a successful corporation in foreign markets as well.
Our vision is to strengthen the Company’s central, leading role in the organisation and management
of motorway construction, as well as in the operation and maintenance of the motorway network, and
thereby strengthen its reputation as a stable, reliable, effective and trustworthy motorway operator
providing high-quality services to users, ensuring profit to its shareholders on a long-term basis, and
stimulating career advancement and personal development among its employees.
The creation of modern and high-quality links, optimal preservation of an appropriate motorway standard
ensuring adequate traffic safety and extending the service life of motorways, as well as the development
of integral services, will be reflected in the satisfaction of users of motorways and other services provided
by the Company.
The owner’s satisfaction will be attained through the stable and long-term growth of the Company, and
by providing an optimal share of concession funds for the settlement of liabilities arising from borrowings
raised by the Company on behalf and for the account of the State, and guaranteed by the State, for the
purpose of constructing new motorways. In organising and managing the construction of new motorways
and operating and maintaining existing motorways, the Company shall focus primarily on quality, prices of
execution and services, and on deadlines. Together with the providers of expert services (»engineers«),
the Company shall devote special attention to continuously improving design, technical and tender
documents, as well as enhancing the implementation of traffic, technical and other solutions aimed at
preserving or improving quality for an equal price.
The Company will ensure the satisfaction of employees by providing adequate conditions for their
personal development and advancement, motivation, security of employment in attaining the set goals,
and pleasant working conditions. The adequate international organisation and motivation of employees
will serve as tools for attaining the desired quality level of services, productivity, cost-effectiveness, and
the stability and long-term growth of the Company.
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Strategic Goals
The strategic goals of the Motorway Company in the Republic of Slovenia are:
• to preserve and develop the leading position in the management and maintenance of motorways in
Slovenia;
• to become a reference company in state ownership specialising in the organisation of motorway
construction and other infrastructure projects;
• to ensure, by rational and economically justified development of the toll collection system, the maximum
share of concession funds required for the repayment of loans raised for motorway construction;
• to strengthen the financial engineering of debt management;
• to sustainably develop and improve standards and procedures for the operation and maintenance of
motorways;
• to place the users of motorways and their desires and needs, as well as environmental concerns, at the
centre of its business operations,
• to reorganise and optimise the staff structure in order to facilitate the performance of existing activities
and business functions, as well as the development of new services.
It shall further be necessary to provide effective solutions for the implementation of the National
Motorway Construction Programme, namely:
• a concept of development and marketing of integral services for users,
• identification and implementation of capital and other forms of business links,
• staff development and motivation.
Quality Policy
Through the professional and responsible performance of tasks, the Management and staff of the
Company are fulfilling the requirements and expectations of the Company’s owners and the users of our
services.
Our aim is to offer high-quality and integral services to all our customers. This is being achieved in the
following ways:
• making responsible decisions,
• establishing appropriate conditions and relations within and outside the Company,
• carefully selecting qualified partners,
• consistently complying with legislation and development policies,
• supporting the development of the profession and acquiring new knowledge, and
• committing ourselves to environmental protection and friendly mutual relations.
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Key Business Events in 2007
• In 2007 the following motorway sections and other roads were brought into service:
— the Hajdina — Ptuj two-lane road in a length of 2.3 km, including a bridge across the Drava River, in a
length of 0.4 km,
— the first half of the PeraËica — Podtabor dual carriage motorway in a length of 2.4 km,
— Lendava bypass road in a length of 1.2 km.
• January
The Corporate Collective Agreement of DARS d.d. became effective as of 1 January 2007.
• March
On 15 March 2007 the Government of RS adopted the 2007 Annual Motorway Development and
Reconstruction Plan.
• April
On 12 April 2007 the Supervisory Board of DARS d.d. approved the 2007 Business Plan of DARS d.d..
• May
On 7 May 2007 the National Assembly of the Republic of Slovenia approved the 2007 Annual Motorway
Development and Reconstruction Plan adopted by the Government of RS on 15 March 2007,
• Junij
At its session held on 29 June 2007, the Government of the Republic of Slovenia took note of the
Report on the verification of actual justified costs of performing contracts under the Agreement on
the Performance of Contracts, and the actual justified costs of calculating concession tax under the
agreements concluded between the Republic of Slovenia and DARS d.d.. At the same session, the
Government of the Republic of Slovenia adopted the measures proposed by the Expert Group appointed
by decision of the Government of the Republic of Slovenia, no. 01400-1/2006/12 of 22 March 2006, and
instructed the Expert Group to continue its work and to prepare draft amendments to the concession
and agency agreements.
• July
On 24 July 2007 the Company concluded a loan agreement with Nova Ljubljanska banka in the amount
of EUR 245 million to finance the construction of motorway sections under the National Motorway
Construction Programme.
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Economic Environment
Owing to favourable international economic trends in 2007, the country’s high economic growth increased
to 6.1%, representing the highest growth recorded after its attainment of independence. The key factors
influencing growth were the export of goods and services (13 percent growth in real terms) and intensive
domestic investment activities (17.2 percent growth, in real terms, of investments in property, plant and
equipment). Investment activities in 2007 were the most intensive in recent years, and were stimulated by
the construction of infrastructure. Other construction investments also intensified. Favourable business
expectations continued to stimulate the growth of investments in equipment and machinery, as well as the
expansion of production facilities. Among individual activities, processing and the construction industry
contributed the largest shares to economic growth. The growth of state and private consumption stabilised
in comparison with 2006. Intensive economic activity also had a positive effect on the labour market,
where the employment rate increased by 2.7%. The highest increase in employment was recorded in the
construction industry. Salaries increased at a stable rate, but fell behind the growth of work productivity,
attaining a 5.9 % nominal growth and a 2.2 % growth in real terms.
The inflation pressures that began to be felt in Slovenia in the past year were additionally stimulated by
movements in the prices of oil, basic raw materials and food on world markets. The average inflation at
year end was 3.6 %, while year-on-year inflation was 5.6 %. Despite the positive effects of high economic
growth on the economy and due to substantial investments in machines and equipment, as well as
increased imports of intermediate goods aimed at accelerating the growth of production in processing
activities, the import of goods surpassed exports, which indirectly increased the balance of payments
deficit to 4.8% of GDP for 2007.
Financial Operations and Financial Risk Management
In its operations, the Company pursued the goal of minimising operating and financial risks. On the
expense side, operating risks were hedged by security instruments requested from suppliers (primarily
first-class guarantees and contractual penalties imposed in cases of delayed completion of works), and
on the revenue side by closely following traffic flow forecasts and toll collections, as the demand for
motorway utilisation services has a low elasticity and the responses of users are foreseeable along with
the still acceptable risk of incorrect estimates.
The Company carried out its financial operations in cooperation with several international and foreign
commercial banks, and with practically all Slovene banks. Such diversification of operations effectively
reduces the risk of overdependence on individual institutions and increases operating competitiveness.
The Company reduced its financial risks by means of several instruments, including both natural protection
and the use of derivative financial instruments. In 2007 the Company concluded three deals aimed at
securing interest rate risks. Currency risks were secured primarily through natural protection, i.e. cash
flow management. Such protection is possible because the Company operates in only a limited number of
currencies and carries out the majority of its transactions in the EUR currency.
Liquidity risks were reduced by effective liquidity management and the formation of a highly liquid
investment portfolio.
As part of its agency activities under the Agreement on the Performance of Contracts, the Company
signed a loan agreement for new borrowings with Nova Ljubljanska banka, d.d..
In line with the Motorway Company in the Republic of Slovenia Act, the Company’s investment policy in
2007 was focused on debt instruments issued by the State and commercial banks. Within the scope of
liquidity management, the Company optimised cash flows through the so-called construction account and
the account of DARS d.d..
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Analysis of Business Performance
Toll Collection
In 2007 tolls were collected at twenty-seven tollbooth locations in both open and closed toll collection
systems.
Number of vehicle crossings at toll stations per toll class in 2007
Toll class
Vehicle crossings Vehicle crossings Index Share (%)
in 2007 in 2006 2007/2006 in 2007
R1 30,558,627 30,449,357 100 39
R2 4,889,313 4,249,443 115 6
R3 3,097,817 2,691,309 115 4
R4 9,767,780 7,999,934 122 12
R5 568,458 682,130 83 1
ETC 29,745,906 25,811,156 115 38
TOTAL 78,627,901 71,883,329 109 100
Comparison of vehicle crossings at toll stations per toll class in 2006 and 2007
22 ANNUAL REPORT DARS d.d. 2007 BUSINESS REPORT

Tolls collected per toll class in 2007
In 2007 the number of vehicle crossings at toll stations totalled 78.6 million, which is 9 % more than in
2006.
Toll class
Tolls collected Tolls collected Index Share (%)
in 2007 (EUR) in 2006 (EUR) 2007/2006 (2007)
R1 48,784,120 48,114,327 101 27
R2 11,108,265 9,695,580 115 6
R3 12,521,878 10,768,535 116 7
R4 65,371,388 52,538,425 124 36
ETC 41,863,441 35,862,201 117 23
TOTAL 179,649,093 156,979,069 114 100
Note:
Data on tolls collected are exclusive of VAT.
The data on tolls collected at toll stations per toll class differ from the revenue from tolls collected for the following reasons:
• discounts specified in the pricelist (for loading credit on electronic mediums (tags), post-paid tolls, etc.), as a result of which the
revenue is smaller than actually loaded/utilised (estimated acc. to passages through toll stations), and
• the report on tolls collected is prepared by shift (the third night shift bears the date when the shift began), while revenue is recorded
on the basis of actually issued invoices or utilised credit on electronic mediums.
23 ANNUAL REPORT DARS d.d. 2007 BUSINESS REPORT

Completed Construction and Reconstruction Works on Motorway Sections
In 2007 the value of completed construction and reconstruction works on motorway sections (excluding
agent compensation and liabilities from borrowings and bonds) amounted to EUR 609,510,986, which is
2 percent above the plan.
New motorway sections constructed in 2007 reached a total value of EUR 534,183,393, which is 7 percent
above the plan.
Scheduled and completed construction and reconstruction works on motorway sections in 2007
(Amounts include financing costs for individual sections)
Scheduled 2007 Completed 2007 Index
Motorway section (EUR) (EUR) Completed 2007
/ Scheduled 2007
MARIBOR - LENART 35,433,064 35,796,384 101
LENART - COGETINCI: Lenart - Spodnja Senarska 25,461,292 27,035,901 106
HAJDINA - ORMOŽ: Hajdina - Ptuj 2,029,943 6,612,691 326
BELTINCI - PINCE: BELTINCI — LENDAVA, Phase I 31,835,989 49,096,237 154
LENART - BELTINCI: Cogetinci - VuËja vas 19,354,298 24,178,357 125
Motorway PESNICA - SLIVNICA: Zrkovska cesta - Ptujska cesta 16,679,999 10,144,048 61
PESNICA - SLIVNICA: Zrkovska — Pesnica link road 33,790,002 37,530,375 111
BELTINCI - PINCE: LENDAVA — PINCE, Phase I 33,703,518 72,397,497 215
Motorway PESNICA - SLIVNICA: Nova Zrkovska c., km 0.87 - km 3.8 1,220,001 4,059,334 333
LENART - COGETINCI: SPODNJA SENARSKA — COGETINCI 39,827,205 42,139,313 106
Motorway SLIVNICA — DRAŽENCI 26,444,109 25,473,939 96
Draženci - Gruškovje, subsection of intern. border crossing
Gruškovje — state border — additional program
4,882,741 2,505,546 51
PROJECT 1 — TOTAL 270,662,161 336,969,621 124
RAZDRTO — VIPAVA: Rebernice 38,632,259 40,310,022 104
Motorway KLANEC - ANKARAN: Connection to Port of Koper, Phase I 12,547,960 9,823,560 78
Motorway KLANEC - ANKARAN: Petrol pump platform Bertoki 209,998 526 0
Motorway KOPER — IZOLA 17,015,882 5,785,700 34
PROJECT 4 — TOTAL 68,406,099 55,919,808 82
ŠENTVID — KOSEZE 58,124,124 41,140,421 71
BI» - HRASTJE: PONIKVE - HRASTJE 9,569,550 4,655,389 49
ŠMARJE SAP - VIŠNJA GORA: Petrol pump platform Cikava 1,609,998 59,331 4
PERAËICA - PODTABOR 11,161,683 11,442,034 103
Motorway VRBA - PERAËICA 38,238,240 45,718,599 120
Motorway HRASTJE - KRONOVO: Lešnica - Kronovo 27,639,455 31,067,551 112
BI» - HRASTJE: PLUSKA - PONIKVE 13,452,799 7,210,640 54
PROJECT 6 — TOTAL 159,795,849 141,293,964 88
24 ANNUAL REPORT DARS d.d. 2007 BUSINESS REPORT

TOTAL NEW MOTORWAYS 498,864,109 534,183,393 107
TOTAL FINISHING WORKS ON MOTORWAYS CONSTRUCTED
AFTER 1994
TOTAL FINISHING WORKS ON MOTORWAYS CONSTRUCTED
BEFORE 1994
18,230,604 17,718,296 97
9,180 262,082 2855
ELABORATION OF DESIGN AND OTHER DOCUMENTS FOR MOTORWAY
SECTIONS AFTER 2007
ACQUISITIONS OF LAND AND OTHER REAL PROPERTY FOR MOTORWAY
SECTIONS AFTER 2007
5,769,066 2,801,524 49
3,338,341 958,236 29
DRAGONJA International border crossing 1,251,878 1,194,133 95
ŠMARJE - DRAGONJA: Dragonja bypass road 834,585 0 0
IG TRAINING CENTER 125,188 0 0
Traffic Surveillance and Management Centre and
Toll Collection Centre (Dragomelj)
1,669,170 307,968 18
TRAFFIC SURVEILLANCE AND MANAGEMENT SYSTEM (ITS) 6,948,385 6,336,192 91
VPD COORDINATION COSTS 292,105 210,685 72
QUALITY CONTROL 271,240 240,260 89
AUDITS (ZGO-1) 629,999 938,355 149
ENLARGEMENT OF EXISTING TOLL COLLECTION BOOTHS 0 99,177 -
ELECTRONIC TOLL COLLECTION SYSTEM 7,368,386 403,344 5
Abolition of international border crossings in the area of
motorways and expressways
0 281,472 -
CONSTRUCTION OF CONNECTING ROADS 5,959,911 3,210,344 54
MOTORWAY RESURFACING AND REPLACEMENT OF FIXTURES 45,370,001 40,365,525 89
TOTAL (not including prepayments of agent compensation) 596,932,148 609,510,986 102
AGENTS COMPENSATION 31,070,065 30,049,597 97
TOTAL (not including liabilities from loans and bonds) 628,002,213 639,560,583 102
LIABILTIIES FROM LOANS AND BONDS 106,175,543 112,309,444 106
GRAND TOTAL 734,177,756 751,870,027 102
Note:
Amounts include VAT.
Completed motorway construction and reconstruction works refers to completed works and liabilities from borrowings and bonds in
accordance with the provisions of the Agreement on the Performance of Contracts relating to the construction and reconstruction of
motorways, financial engineering, and other related tasks under the National Motorway Construction Programme.
The agent compensation is lower than planned because this item also includes the final settlement of compensation for 2006 (credit
note) on the basis of actual values specified in the Report on the development and rehabilitation of motorways in 2006.
25 ANNUAL REPORT DARS d.d. 2007 BUSINESS REPORT

Revenue of DARS d.d.
2007 Revenue
Type of revenue
2007 (EUR) 2006 (EUR) Index Share (%)
2007/2006 in 2007
Revenue under the Agreement on the Performance
of Contracts in line with the National Motorway 26,398,091 17,882,299 148 12
Construction Programme
Tolls collected, rentals, motorway closures,
extraordinary freight transports and other revenue
184,726,120 160,453,139 115 87
Tolls collected 174,719,492 151,951,470 115 82
Rentals 4,380,392 3,988,316 110 2
Motorway closures and
extraordinary freight transports 1,406,321 1,229,410 114 1
Easements 162,073 67,069 242 0
Lease of optical fibre/telecommunications lines 427,929 0 — 0
Other sales revenue 1,385,599 202,069 686 1
Other operating revenue(insurance benefits,...) 2,244,314 3,014,804 74 1
Financial revenue 1,381,930 2,077,371 67 1
Other revenue 85,167 24,912 342 0
TOTAL 212,591,308 180,437,720 118 100
In the 2007 financial year, the revenue of the Company amounted to EUR 212,591,308, which is 18
percent above the 2006 figure and 8 percent more than foreseen in the 2007 Business Plan of DARS d.d.
(hereinafter: 2007 BP).
• Revenue under the Agreement on the Performance of Contracts totalled EUR 26,398,091 and increased
by 48% in comparison with 2006. A comparison with the previous year is not appropriate due to the
final settlement of VAT payments in the period from 2004-2006.
• The growth of revenue was largely the result of increased tolls collected, which amounted to EUR
174,719,492 and were 15 percent above the 2006 figure. They accounted for 82 percent of the
Company’s total revenue.
• Rental revenue amounted to EUR 4,380,392 and was mostly generated from the lease of areas adjacent
to motorways to be used for the performance of catering activities and the erection of base stations
and mobile telephone repeaters. Rental revenue accounted for 2 percent of the total revenue, and
increased by 10 percent in comparison with 2006.
• Revenue from motorway closures and extraordinary freight transports amounted to EUR 1,406,321
in 2007, which is 14 percent above the 2006 figure. Motorway closures included closures of individual
motorway sections due to reconstruction works or the elimination of defects within the warranty period.
Revenue from extraordinary freight transports comprised revenue from extraordinary transports on
motorways.
26 ANNUAL REPORT DARS d.d. 2007 BUSINESS REPORT

• Easement accounted for revenue in the amount of EUR 162,073, which exceeded the 2006 figure by 142
percent. Revenue under this item is generated from the granting of easements allowing interventions in
motorway areas.
• Revenue from the lease of optical fibre / telecommunications lines was generated in the amount of EUR
427,929. This revenue was nonexistent in 2006.
• Other sales revenue in the amount of EUR 1,385,599 comprised revenue from the sale of electronic
tags, other services in the domestic market, sale of waste materials, holiday facilities, snow-ploughing
and accident rescue activities, advertising, issued approvals, etc.. This revenue was almost 7 times
higher than in 2006.
• Other operating revenue in the amount of EUR 2,244,314 mainly comprised revenue from received
insurance payments for the elimination of damage on motorway sections and facilities. This was followed
by revenue from the reversal of provisions, operating revenue from revaluation, etc.. Other operating
revenue was 26 percent below the 2006 figure, and accounted for 1 percent of the Company’s total
revenue.
• Financial revenue amounted to EUR 1,381,930, and decreased by 33 percent over 2006:
• EUR 1,367,283 or 99 percent of financial revenue represented financial revenue from loans given to
others, generated by depositing short-term surpluses of liquid funds with banks.
• EUR 14,647 of the financial revenue represented financial revenue from operating receivables due
from others.
• Other revenue amounted to EUR 85,167 in 2007 and mainly comprised compensation for damages
under litigation and contractual penalties.
Expenses of DARS d.d.
2007 Expenses of DARS d.d.
Type of expense
2007 (EUR) 2006 (EUR) Index Share (%)
2007/2006 In 2007
Labour costs 27,557,899 26,178,259 105 14
Costs of materials 9,487,267 7,494,520 127 5
Costs of services 29,264,001 26,113,222 112 15
Concession tax 122,637,200 103,105,148 119 61
Writedowns 8,074,260 9,314,981 87 4
Other operating expenses 1,834,670 2,015,955 91 1
Financial expenses 11,701 90,066 13 0
Other expenses 17,471 4,510 387 0
TOTAL 198,884,469 174,316,659 114 100
27 ANNUAL REPORT DARS d.d. 2007 BUSINESS REPORT

Shares of individual types of expenses in the total expenses of DARS d.d. in 2007
The total expenses of the Company in 2007 amounted to EUR 198,884,469 and increased by 14 percent
in comparison with 2006.
• Labour costs amounted to EUR 27,557,899. In comparison with 2006, these costs increased by 5%,
primarily on account of severance pays and the costs of supplementary pension insurance of employees.
Labour costs accounted for 14 percent of the Company’s total expenses.
• Costs of materials amounted to EUR 9,487,267 and accounted for a 5-percent share in the total expenses
of the Company. In comparison with 2006, costs of materials increased by 27 percent, primarily due to
higher costs of electronic tags. These amounted to EUR 3,132,994 in 2007, which is 93 percent above
the 2006 figure.
• Costs of services excluding concession tax in the amount of EUR 29,264,001 increased by 12 percent in
comparison with 2006. These costs accounted for a 15-percent share in the total expenses. The highest
increase was registered in engineering costs, which increased by EUR 1,929,560 or 13 percent as a
result of the 12-percent increase in completed construction and reconstruction works on motorway
sections (excluding agent compensation and liabilities from borrowings and bonds, and including
financing costs) in comparison with 2006.
• In line with the provisions of the Concession Agreement, the Company paid a total of EUR 122,637,200
in concession taxes to the State on the basis of a granted concession for the exclusive right to manage
and maintain motorways in the Republic of Slovenia. Concession taxes represented 61% of the total
expenses, and exceeded the 2006 figure by 19 percent. This was primarily due to the fact that the
growth of tolls collected was higher than planned, and due to the inclusion of additional revenue in the
calculation of concession tax.
28 ANNUAL REPORT DARS d.d. 2007 BUSINESS REPORT

• Writedowns amounted to EUR 8,074,260 and were comprised of:
• amortisation/depreciation in the amount of EUR 8,002,348,
• operating expenses from the revaluation of intangible assets and property, plant and equipment in
the amount of EUR 12,752, and
• operating expenses from the revaluation of operating current assets in the amount of EUR 59,160.
In comparison with 2006, writedowns decreased by 13 percent.
• Other operating expenses amounted to EUR 1,834,670, of which:
• EUR 273,698 represented costs not directly associated with operations (membership fees to
chambers, contributions for the employment of disabled persons, charges for building site usage,
costs related to holiday facilities, and similar) and
• EUR 1,560,972 represented costs of long-term provisions, comprising:
◾ EUR 90,906 for long-term accrued costs of indemnity claims in lawsuits relating to the management
and maintenance of motorways and for employee actions arising from employment in the amount
of EUR 57,581,
◾ EUR 185,250 for long-term accrued costs arising from employment relations resulting from the
transfer to the free-flow toll collection system,
◾ EUR 108,496 for the foreseen purchase of years of service and for severance pays to redundant
employees as a result of the transfer to the free-flow toll collection system,
◾ EUR 968,709 for the formation of long-term accrued costs and deferred revenue for the settlement
of contingent liabilities arising from sold electronic tags, i.e. for purchase price refunds upon the
possible return of electronic tags (buyers of electronic tags have the possibility of returning their
electronic tags within seven years),
◾ EUR 117,534 for the formation of provisions for termination benefits upon retirement and jubilees
benefits,
o EUR 32,497 for the formation of provisions for payments upon retirement to employees who,
based on an agreement between the trade union and the Company, are not included in the pension
scheme of collective voluntary supplementary pension insurance.
• Financial expenses amounted to EUR 11,701 and represented 13 percent of the value of financial
expenses in 2006. Financial expenses were related entirely to financial expenses from operating
liabilities, and comprised foreign exchange losses and default interest expenses.
• Other expenses amounted to EUR 17,471 and represented compensations paid on the basis of lawsuits
and imposed contractual penalties.
Profit
The total profit of the Company for the period from 1 January to 31 December 2007 amounted to EUR
13,706,840 and increased by 124 percent over 2006.
Following the deduction of corporate income tax in the amount of EUR 3,141,155 and deferred taxes in
the amount of EUR 61,548, the net profit of the Company for 2007 amounted to EUR 10,504,137, which
is 153 percent higher than the net profit for 2006.
29 ANNUAL REPORT DARS d.d. 2007 BUSINESS REPORT

Business Activities of the Company
Corporate Affairs Division
Internal Audit Department
In 207 the Internal Audit Department, which began to operate in the Company in October 2006, outlined
the bases for its further work. At the beginning of the year, the Department prepared an audit risk analysis
and, on the basis thereof, a Strategic Plan of Work of the Internal Audit Department for the period from
2007-2009 and an Annual Plan of Work of the Internal Audit Department for 2007. After these documents
were approved by the Management Board, the Department began to carry out internal auditing activities
in accordance with the Annual Plan of Work of the Internal Audit Department for 2007.
The objective of internal audits is primarily to ensure the establishment and functioning of the internal
controls system and to assess their effectiveness.
Two internal audits were conducted in 2007:
1. an audit of the purchasing function for the purpose of performing activities under the Concession
Agreement, and
2. an audit for the purpose of implementing toll collection (toll collection process in the narrower
sense).
With respect to the processes under way in the above-mentioned areas, the Internal Audit Department
provided assurance that internal controls had been established and were functioning, although some
deficiencies had also been found. For the purpose of eliminating these deficiencies and improving
operations in the audited areas, the Department made 40 recommendations and will verify their
implementation in 2008.
The Internal Audit Department also carries out consulting activities, and cooperates with external auditors
and the auditors of the Court of Audit of the Republic of Slovenia.
Purchasing Department
The Purchasing Department was reorganised in 2007 and currently performs the following tasks:
• carries out warehouse operations (warehouse employees now form part of the Purchasing
Department staff),
• conducts public procurements, and
• carries out documentary checks (liquidation of invoices).
In 2007, two sets of internal rules were prepared and implemented, i.e. the Rules on Warehouse Operations
and the Rules on Service Operations, which regulate the warehouse and service operations unit on the
Company level.
For the purpose of rationalising procedures and simplifying work, public procurement procedures are now
oriented towards the conclusion of long-term contracts, which provide suppliers with greater certainty
and thus the possibility of lower prices.
30 ANNUAL REPORT DARS d.d. 2007 BUSINESS REPORT

Communications Department
Under the Concession Agreement, the Communications Department has the principal task of organising
a system for informing the public on motorway conditions and traffic, and providing information in line
with the guidelines of the Ministry of Transport. These tasks involve designing the information system,
designing the information centre, and informing the public. In 2007, the Traffic Information Centre for
Public Roads provided users with quick, high-quality and continuous information on traffic conditions.
The Centre successfully connects all currently available sources of traffic information on one side, and
delivers such information to users through the media, Internet, teletext, voice station, and in the form of
individual information by phone on the other side.
The Communications Department also planned, carried out and analysed the following:
• external communications — with special emphasis on the media, state institutions, financialinstitutions,
motorway users, and local communities near the construction sites of future motorways,
• internal communications (relations with employees), within the scope of which it organised the issue
of an internal newspaper, the design of an intranet portal, staff events, etc..
Business Division
Road Planning, Development and Management Department
A Report on the Implementation of the 2007 Annual Motorway Development and Reconstruction Plan
was prepared in line with the Motorway Company in the Republic of Slovenia Act. An assessment of
the schedule of construction and reconstruction works in the 2007-2010 period was prepared, and the
analysis of the implementation of the Resolution on the National Motorway Construction Programme
(ReNMCP) in the period from 2003-2006 was upgraded with a projection of its implementation in the
2007-2008 period. In the second half of 2007, expert bases were drafted for the 2008 Annual Motorway
Development and Reconstruction Plan.
The process of establishing a road data bank (RDB) for roads managed by DARS d.d. was continued in
2007. A report on public road expenses for 2006 was compiled.
In the area of road management, the Department continued to implement the expert system dTIMS_CT
for road management on roads operated by the Company in 2007. The first upgrade of the system was
completed and presented, and includes new road deterioration models and a road structure dimensioning
procedure; link roads and rest areas have been added, and the total costs of rehabilitation measures
together with all parallel costs ( closures, guardrails, designs, supervision, etc.) have been taken into
account.
Two-, five- and ten-year road rehabilitation plans were drafted using graphic and statistical displays of the
network’s condition based on various anticipated road maintenance budgets. The results were used to
prepare a draft road rehabilitation plan for the years 2008 and 2009.
A comparison of the operational rehabilitation plan with the road rehabilitation plan was prepared. On the
basis of this plan, the upgrading of the system is being continued.
Based on data entered into the expert system, a »Review of longitudinal levelness on motorway sections«
was prepared for the year 2007, which was subsequently followed by a review based on other criteria
(transverse levelness, skid friction coefficient, MSI - Modified Swiss Index, and total road condition
index).
At the end of the year, the Department began a new round of road condition measurements, which are
require to ensure the proper functioning of the road management system.
31 ANNUAL REPORT DARS d.d. 2007 BUSINESS REPORT

International Cooperation Department
For the purpose of utilising funds from the Cohesion Fund, the Department cooperated in 2007 with
competent Slovene ministries and EU institutions in implementing procedures for the utilisation of funds,
and organised and conducted the implementation of required tasks by other divisions of the Company
participating in the activities of the Cohesion Fund. The project involving the construction of the motorway
section Smednik — Krška vas was successfully completed after obtaining approval of the final report, and
activities were continued on the project for the construction of the Vrba — PeraËica motorway section.
In line with the Operational Programme for the development of environmental and traffic infrastructure,
procedures were carried out for the purpose of utilising European cohesion policy funds for 4 motorway
projects included in the scheme of co-financing from the Cohesion Fund in the programme period 2007-
2013.
In addition to funds from the Cohesion Fund, the Company also received funds in 2007 from the European
Fund for Regional Development in the form of technical assistance in the preparation of certain studies
for the third development axis, as well as funds from the TEN-T budget to be used for the preparation of
specific project and spatial documents for the road section Slivnica — Draženci — Gruškovje.
Again in 2007, the Company actively participated in various international projects. Several meetings
were organised in connection with the TEMPO-CONNECT projects, the EASYWAY program, and the
PROMET project. The Company continued to participate in the MEDIA project for the establishment of
interoperability of toll collection systems in the alpine region, and in the RANKERS traffic safety project.
New project proposals and relevant documents needed for their co-financing from European funds were
prepared.
Within the scope of its membership in ASECAP, the Company participated in the Steering Committee,
General Assembly, Executive Committee, working bodies and projects of this association in 2006.
General Affairs Department
The processing of incoming mail was centralised and, in the autumn period, a comprehensive electronic
office mail system using the line code was implemented. The central organisation and management of
the courier service was introduced, and courier routes were rationalised. For the purpose of ensuring
the adequate arrangement of available archival areas, the Department prepared internal regulations
comprised of internal acts related to the archiving of documentary materials within the scope of the
Company’s archives.
Occupational Health and Safety Department
The Occupational Health and Safety Department carried out the following tasks:
• in the area of health protection: organised medical examinations, vaccinations against tick-borne
meningoencephalitis and influenza, and participated in the completion of documents for disability
committees,
• in the area of education: organised general internal training programmes in the fields of occupational
health and safety, fire protection, and the operation of complex working machines, tools and
equipment;
• in the area of fire protection: organised inspections and repairs of fire extinguishers and hydrants;
• in the area of working environment: carried out measurements of chemical hazards in the painting of
ground markings;
• performed activities at construction and reconstruction sites,
• reviewed risk assessments in other areas. A number of new measures for improving the health and
safety of employees were included in the risk assessments.
32 ANNUAL REPORT DARS d.d. 2007 BUSINESS REPORT

Legal Affairs, Organisation and Human Resources Division
Legal Affairs Department
In 2007 the Legal Affairs Department carried out its tasks in line with the Agreement on the Performance
of Contracts and the Concession Agreement.
The Legal Affairs Department provided legal advisory services to all departments of the Company in
connection with their areas of work, i.e. the regulation of employment relations, including the conduction
of civil procedures before labour courts, public procurements, regulation of obligational relations with
contractors, regulation of credit relations and other transactions relating to funds provision, regulation
of relations with lessees of motorway rest areas, and the regulation of indemnity relations in connection
with damaging events on motorways, including the conduction of civil procedures. The Department also
carried out the legal review of the compliance of resolutions proposed by the Management with applicable
legislation and the internal acts of the Company, provided advisory services to other bodies of the
Company (Supervisory Board), and participated in the preparation of new legislation and implementing
regulations with the Ministry of Transport and other state bodies.
A large portion of the work performed by the Legal Affairs Department in 2007 was related to the
acquisition of land required for the construction of motorways and roads foreseen in the Annual Motorway
Development and Rehabilitation Plan, and the settlement of relations in connection therewith.
The Legal Affairs Department provided for the updating of the Company’s legal status acts and related
entries in the court register.
Organisation and Human Resources Department
In line with the staff policy, the 2007 human resources plan of the Company was as follows:
Employees as at Recruitments/ Planned
ORGANISATIONAL UNIT 31 Dec 2006 reassignments employees as at
in 2007 31 Dec 2007
Management and business functions 133 19 161
Organisation of motorway construction and reconstruction 16 1 16
Motorway maintenance 536 45 563
Toll collection 421 17 409
Total: 1,106 82 1,149
This part of the human resources plan was successfully implemented, as indicated in the table below
(taking into account the new organisation structure).
ORGANISATIONAL UNIT
Employees
as at 31 Dec 2007
Motorway maintenance 563
Toll collection 388
Other organisational units 177
Total: 1,128
33 ANNUAL REPORT DARS d.d. 2007 BUSINESS REPORT

Finance and Marketing Division
Finance, Accounting and Controlling Department
The departments operating in the areas of finance, accounting and controlling carried out their tasks in
2007 in line with the Agreement on the Performance of Contracts and the Concession Agreement.
In performing its tasks, the Department devoted special attention to the following:
• the preparation of proposals for financing the National Motorway Construction Programme and the
budget of the Company in order to ensure the undisturbed supply of financial resources,
• the preparation of proposals for financing the construction of individual motorway sections under the
National Motorway Construction Programme,
• the acquisition of funds earmarked for financing the National Motorway Construction Programme,
funds from the Cohesion Fund, financial resources in financial and capital markets, and other financial
resources for financing the National Motorway Construction Programme,
• the optimisation of sources of funds for motorway construction under the National Motorway
Construction Programme,
• ensuring the regular supply of financial resources,
• the management of loans raised for the performance of tasks relating to motorway construction under
the National Motorway Construction Programme with the goal of reducing currency, interest and other
risks,
• the profitable placement of surplus liquid funds,
• monitoring the financing of the National Motorway Construction Programme as a whole and by
individual sections under NMCP, and monitoring the acquisition and utilisation of funds,
• reporting to the Ministry of Transport and the Ministry of Finance,
• cooperation with international and domestic financial institutions.
Sales and Marketing Department
The Strategic Marketing Department mainly performed tasks involving the organisation, management
and conduction of analyses and surveys of the relevant market, market opportunities, and possibilities
for the development of new products and services. The new service for electronic media users, i.e. the
option of remote loading of credit via the Internet, which at least partly helped to reduce waiting times at
toll collection booths, was successfully implemented.
The Department actively participated in preparing a concept of the implementation of electronic free
flow toll collection, in negotiations with haulers, and in the preparation of toll pricelists, within the scope
of which a night toll applicable in the tourist season and during the Christmas holidays was introduced by
order of the Ministry of Transport.
The Sales Department carried out the following tasks:
• entered into post-paid toll account contracts,
• prepared and distributed proforma invoices to domestic and foreign users of electronic media,
• prepared toll accounts and delivery notes for prepaid account top-up,
• issued invoices for post-paid services and collected receivables prior to court action,
• prepared a stop list of nonpayers,
• concluded contracts with payment card issuers,
• transferred data files and issued invoices to cardholders, confirmed fees,
• organised the sale of electronic media at external sales locations,
• communicated with motorway users,
• concluded contracts for rest areas (8 rest areas located on motorway sections under construction were
successfully leased), issued invoices, and prepared analyses related to the operation of rest areas.
34 ANNUAL REPORT DARS d.d. 2007 BUSINESS REPORT

The Toll Collection User Centre offered assistance to users of electronic media for toll payments. Special
emphasis was laid on the processing of complaints. With the aim of providing a more user-friendly
environment for the performance of services, the quarters of the Centre were reorganised and now allow
users to settle all their business at one location.
The Real Property Management Department was established in the last quarter of 2006. In 2007, the
Department began to intensively process old and new applications for the sale of surplus land on the
basis of internal procedures (establishment of surplus land, formal procedures for the sale of established
surpluses, procedures for informing persons inquiring about specific land plots managed by the Company,
defining the possible methods of sale, and establishing any missing records). The greatest difficulties
encountered by the Department involved the acquisition of adequate information on land plots alongside
older motorway sections.
The Insurance Department began to operate at the end of the first quarter. Its priority task in the first
phase was to establish an integral and uniform insurance system in the Company. Favourable results were
already attained in 2007 with respect to the reduction of premiums for individual types of insurance,
inclusion in more favourable premium classes, and the attainment of discounts for timely premium
payments, etc.. Some claims for damages that had previously been rejected by insurance companies due
to our non-unified approach began to be settled to the Company’s advantage.
The Telecommunications Marketing Department began to actively market optical fibre in the beginning
of 2007, after the Government of RS had approved its business plan and the recognised costs of optical
fibre sales. Although the sales results were encouraging, it became apparent that it would be possible
to market optical fibre much more successfully after the completion of the motorway network, when all
sections are connected. A business plan was prepared for the marketing of capacities, which will allow the
Company to market more complex and thus more profitable telecommunication services.
35 ANNUAL REPORT DARS d.d. 2007 BUSINESS REPORT

Toll Collection Division
Toll collection was conducted in line with the provisions of the Concession Agreement, the Public Roads
Act, the Decree on toll roads and tolls for the use of toll roads, the Decree on tolls for the use of the
Karavanke road tunnel, and the Toll pricelist for the use of toll roads. The past year was marked in
particular by the following events:
• The introduction of the euro as the new national currency. The first few months were the most intensive,
as it was necessary to ensure the pre-supply of euro cash, take tolars out of circulation, and form real
stocks of cash for exchange purposes. In addition to making all the necessary arrangements for normal
operation with an increased volume of coins, additional forgery detection machines were supplied. After
the initial period of changeover, euro cash transactions stabilised and, in the final phase, facilitated toll
collection operations.
• The enlargement of the Torovo toll collection station, which was completed before the summer season,
has considerably increased road traffic fluency and improved the standard of this service for motorway
users.
• Partial modification of the transport of toll proceeds at toll stations.
• The optimisation of IT support to toll collection operations was carried out in 2007. Although the
upgrading process had already been started in the previous year, it was completed in the optimisation
phase, and certain procedures and functionalities were adapted to ensure smooth-running toll
collection. Additional adjustments were needed to enable the use of a differentiated pricelist featuring
lower tolls at night.
• Toll collection operations were intensively controlled, both analytically and operationally. This allowed
the Company to attain more consistent toll charging and greater accuracy in operations. The most
serious violators of the prescribed method of operation were sanctioned, in some cases even by the
termination of their employment contracts.
• Work loads and operating accuracy were monitored by the analysis of operating data. The indicators
calculated in this way enabled better comparison of employees and the optimisation of business
operation. On this basis, a considerable volume of work was performed by cost-effective student labour,
which accounted for more than 80% of the work performed by toll collectors at certain toll stations in
the summer months.
• Student labour was treated systematically, from the announcement of our staff requirements to their
application, training, assignment to toll collection booths, calculation of hours worked, and archiving of
documents.
• The rehabilitation of toll collection stations comprised the urgent reconstruction of roads and the
replacement of deteriorated toll collection booths.
• The installation of an automatic toll system at the smaller toll stations of Lukovica and Blagovica, which
will begin to function in the spring of 2008, had already been used in 2007, when it was necessary to
foresee all processes that will be taking place at these stations.
Taking shape in the background of events at toll stations was the Toll Collection Act, which foresees a
different method of toll collection supervision. In 2007, attempts were made to define the forms and
methods of conducting toll collection supervision. Despite the fact that toll collection is developing in a
slightly different direction than foreseen in the Toll Collection Act, the bases for conducting supervision
have not changed significantly, only the possibilities for conducting supervision are somewhat smaller.
The establishment of a supervision department will probably be the principal task of the Toll Collection
Division in 2008, and will be closely linked to the reorganisation of business operations and related staff
issues.
36 ANNUAL REPORT DARS d.d. 2007 BUSINESS REPORT

Motorway Construction and Reconstruction Organisation Division
Spatial Planning Department
Within the scope of preparing design, spatial and other documents, procedures were in progress in 2007
for 17 national spatial plans, and various phases of these procedures were completed.
The following tasks were performed:
• Two comparative studies of versions, together with pertaining expert bases, and two environmental
reports, which, in the process of laying routes, represent an expert basis for deciding on the most
favourable version: for the new state road leading from the border with Austrian to the A1 motorway
(northern part of the third development axis, October 2007), and for the main road on the section Ptuj
— Markovci (August 2007).
• On the basis of previously prepared comparative studies of versions, together with pertaining expert
bases and environmental reports, the Government of the Republic of Slovenia adopted a resolution on
the selection of the most favourable versions for two sections: the connecting road Jeprca — StanežiËe
— Brod (March 2007), and the motorway section Draženci — International border crossing Gruškovje
(April 2007).
• Following the amendment of spatial legislation in April 2007, the Minister of Transport and the Minister
of Environment and Spatial Planning selected, on the basis of previously prepared comparative studies
of versions, together with pertaining expert bases and environmental reports, the most favourable
versions for two sections: the expressway section Koper — Dragonja (July 2007), and the motorway
access road Brezovica (November 2007).
• Public exposures of draft national spatial plans for two projects: the Cerklje airfield (November —
December 2007) and the Dragonja bypass road (March 2007).
• Public presentation of a comparative study of versions and a proposal of the most favourable version
for one (1) section, i.e. for the new public road leading from the border with the Republic of Austria to
the A1 motorway (northern part of the third development axis, October 2007).
• Public notification of changes in the solutions presented at a public exposure for one road section, i.e.
the expressway section Jagodje — Lucija (April 2007).
• Based on draft national spatial plans, the Government of the Republic of Slovenia adopted five decrees
on national spatial plans: for the Maribor service centre on the motorway section Slivnica — Pesnica, the
Dragonja bypass road, the motorway section Šentvid — Koseze (extended project: modifications and
amendments to spatial plan due to the full link road Šentvid), the main road section Žeje — Vodice, and
the Motorway Maintenance Center Podtabor.
Planning and Design Documents Department
The activities performed in the area of investment document preparation included the procurement,
review and approval of investment documents (investment programs, amendments of investment
programs, studies of the execution of planned investments, reports on the execution of investment
projects, and reports on the monitoring of investment effects).
In 2007, amended investment programmes were prepared and approved for the motorway sections
Pluska — Ponikve and Ponikve — Hrastje. Investment programs were also prepared for the mainroads
Želodnik — Mengeš and Mengeš — Žeje, the motorway link road Naklo, and for the second amendment to
the investment program for the Šentvid — Koseze motorway.
37 ANNUAL REPORT DARS d.d. 2007 BUSINESS REPORT

The activities carried out in the area of design document preparation included the procurement, review
and approval of design documents (geological-geotechnical studies in the design phase, designs for
building permit approval, designs for tenders, execution designs, various expert bases and studies
in the design phase, organisation of design reviews and revisions for building permit approval in line
with the Building Construction Act (ZGO-1), preparation of tender documents and execution of public
tenders for the preparation of such documents, preparation of guidelines for public tenders for research
and development studies in the area of construction, and cooperation in the elaboration of technical
specifications.
In 2007, designs for the acquisition of building permits were elaborated and approved for the motorway
Slivnica — Draženci (stage B), the Srmin turnoff, Želodnik — Mengeš, Mengeš — Žeje, motorway link road
Naklo, rest area Vipava, Maribor service center, toll station Brezje, toll station Dragotinci, toll station
Banuta, toll station Prepolje, and traffic monitoring and management systems at Rebernice and on part
of the Primorska motorway.
Construction Organisation and Supervision Department
In 2007 the following sections of motorways and other roads were brought into service:
• two-lane road Hajdina — Ptuj in a length of 2.3 km, including the Drava bridge in a length of 2.3 km,
• first half of two by two lane motorway PeraËica - Podtabor in a length of 2.4 km,
• Lendava bypass in a length of 1.2 km.
Construction works were continued on the following sections of motorways and other roads:
• a section of the two-lane road Nova Zrkovska cesta from km 1.9 to km 3.8,
• two by two lane motorway Lendava — Pince in a length of 16.7 km,
• platform for the Bertoki petrol station,
• platform for the Cikava petrol station,
• two by two lane motorway Maribor — Lenart in a length of 7.8 km,
• two by two lane motorway Lenart — Spodnja Senarska in a length of 7.2 km,
• two by two lane motorway Cogetinci — VuËja vas in a length of 11.6 km,
• two by two lane motorway Zrkovska cesta — Pesnica link road in a length of 6.3 km,
• two by two lane motorway Zrkovska cesta — Ptujska cesta in a length of 4.2 km,
• connecting road to the Port of Koper (Bertoki radial road) in a length of 3.4 km,
• expressway Razdrto — Vipava: Rebernice in a length of 10.7 km,
• two by two lane motorway Vrba — PeraËica in a length of 10 km,
• second half of two by two land motorway PeraËica — Podtabor in a length of 2.4 km,
• two by two lane motorway Šentvid — Koseze in a length of 3.7 km,
• two by two lane motorway Slivnica — Draženci in a length of 18.9 km,
• two by two lane motorway Lešnica — Kronovo in a length of 5.5 km,
• expressway Koper — Izola in a length of 5.1 km.
In 2007 construction works were begun on two motorway sections:
• two by two lane motorway Pluska — Ponikve in a length of 6.3 km,
• two by two lane motorway Ponikve — Hrastje in a length of 8.6 km,
• two by two land motorway Draženci — Gruškovje (from International border crossing Gruškovje to
border with Croatia) in a length of 0.6 km.
Preparatory preconstruction works were conducted on the following sections of motorways, expressways,
connecting roads and motorway link roads:
• connecting road to the Port of Koper (Srmin turnoff),
• Markovci — Gorišnica,
• Gorišnica — Ormož.
38 ANNUAL REPORT DARS d.d. 2007 BUSINESS REPORT

Reconstruction Organisation Department
Within the scope of motorway rehabilitation in 2007, intensive reconstruction works were continued on
defective motorway sections and bridging facilities, and investments were implemented in the existing
motorway network.
Owing to the needs identified during seasonal spring inspections and on the basis of acquired design
documents and other unfinished works, and particularly for the purpose of observing higher standards
for road structure reinforcements and guardrail installations, the value of conducted road rehabilitation
works was higher than planned. The following works were carried out:
• rehabilitation of carriageway on the Gorenjska motorway leg: on the motorway section Hrušica-Lipce
(Hrušica link road and Lipce link road) and on the motorway section Kranj West — Kranj East,
• rehabilitation of carriageway on the Primorska motorway leg: on the motorway sections Brezovica
— Vrhnika, Razdrto — SenožeËe (Goli vrh — »ebulovica),
• rehabilitation of carriageway on the Štajerska motorway leg: on the motorway sections Fram —
Slovenska Bistrica, Celje — Arja vas and Slivnica — HoËe; on the expressways Pesnica — Maribor and
Maribor — Tezno, and on the connecting road Meljska cesta,
• rehabilitation of carriageway on the Dolenjska motorway leg: on the motorway sections Šmarje Sap
— Grosuplje and Grosuplje — IvanËna Gorica,
• rehabilitation of carriageway on the Ljubljana motorway ring — sections Ljubljana South (Zaloška —
Litijska), Ljubljana South (Litijska — Malence) and Ljubljana South (Dolenjska — Barjanska — ViË),
• minor road resurfacing works throughout the motorway network.
The volume of completed rehabilitation works was lower than planned. This was primarily due to two
uncompleted projects: the rehabilitation and enlargement of the Ljubljanica bridge at the Vrhnika link
road (land and permits not acquired), and the rehabilitation of the overpass at the Fram link road.
The following major works were completed:
• rehabilitation of the right Verd viaduct and the construction of a sound barrier; described under
investments in environmental protection,
• rehabilitation of overpass at the Vrhnika link road,
• Phase II of rehabilitation of the invert in the Karavanke Tunnel,
• replacement of dilatations at the Mala stara vas underpass, the Dramlje viaduct, and at the Škedenj
viaduct (gorge),
• replacement of defective guardrails and regulation of embankments at several motorway sections.
Within the scope of investments in roads and facilities, only 23 percent of the planned works were
completed. This was primarily due to the fact that construction works were not begun on the Motorway
Maintenance Centre in Logatec.
Within the scope of other investments, the reconstruction and enlargement of small garages and
the construction of new, large garages at the Motorway Maintenance Centre Slovenske Konjice were
completed.
Within the scope of investments in the equipment of the existing motorway network, the following major
works were completed:
• illumination of the Malence turnoffs and the Tepanje rest area,
• demolition and arrangement of the HoËe toll station,
• closure of emergency and concrete barrier crossings,
• upgrading of safety and other equipment in the Pletovarje and Golo rebro tunnels,
• replacement of signalisation and its harmonisation with the Study of road management on the Gorenjska
motorway.
The volume of completed works is smaller than planned because, due to a public procurement complaint,
works were not yet begun on the upgrading of electric-machine safety equipment in the Pletovarje and
Golo rebro tunnels.
39 ANNUAL REPORT DARS d.d. 2007 BUSINESS REPORT

Within the scope of rehabilitation works and investments in environmental protection, the following major
works were completed:
• construction of sound barriers at Kozarje V and VI,
• replacement of sound barrier on the Ljubljana South motorway section (Dolenjska — Barjanska),
• construction of sound barrier on the motorway section Pesnica — Maribor (left side),
• installation of active sound protection on the expressway Maribor — Tezno,
• construction of active and passive sound protection on the motorway section Hrušica — Lipce
(Verdenikova near Jesenice).
The volume of completed rehabilitation works and investments in environmental protection was in line
with the plan.
Public Procurements Department
In 2007, the following activities were carried out in the area of public procurements:
• public procurement procedures in the value of EUR 256.8 million were initiated, which is 94.1 % or
20% less than in the year 2006,
• 79 public tenders were published in the Official Gazette of RS and the Official Journal of EU,
• bidders requested legal protection in 19 claims for review filed In the period from 1-10 January 2007,
which is less than in 2006, when 24 claims for review were resolved. Of the 19 claims for review, the
National Review Commission partly granted one claim for review, granted 4 claims for review, and
rejected 14 claims for review as unfounded and conformed the contracting authority’s decision,
• 14 major construction contracts in a total value of EUR 359.7 million were signed,
• in line with the rules of the Cohesion Fund, several public tender procedures for the motorway sections
Slivnica — Draženci, Pluska — Ponikve and Poikve — Hrastje were successfully completed.
Motorway Maintenance Division
Technology and Intelligent Transport Systems (ITS) Maintenance and Development Department
Activities relating to the setup of traffic surveillance and management systems (TSMS) were carried out
on the following road sections: the Ljubljana motorway ring, Postojna — Kozina, Razdrto — Vipava, in front
of the Karavanke Tunnel, Koper — Izola, and in the Maribor motorway system. The Department prepared
an analysis of maintenance requirements for TSMS Klanec — Ankaran and the necessary documents for
the conclusion of a maintenance contract.
Works were begun on the setup of a TSMS on the Ljubljana West bypass and at the Regional Control Centre
Ljubljana. Activities were under way on the project for the construction and setup of a new Regional
Control Centre Ljubljana. Radar-activated speed warning signs were installed on certain motorway
sections, and two research studies in the area of traffic management were conducted. Activities relating
to the international TEMPO project were continued with the aim of acquiring non-refundable funds.
In the area of tunnel safety, the Company carried out the tasks of tunnel manager and safety officer
pursuant to Directive (2004) 2004/54/EC of the European Parliament and of the Council of 29 April 2004
on minimum safety requirements for tunnels in the Trans-European road network. These tasks included
detailed reporting to the competent administrative body, i.e. the Ministry of Transport, on accidents
and incidents in tunnels. This was followed by the elimination of inadequate tunnel conditions on the
basis of inspections of the compliance of respective tunnels with the Directive, which were conducted
by the Traffic Inspectorate of the Republic of Slovenia in the period between 28 November 2006 and
6 December 2006 (deadline: December 2010; for the Karavanke tunnel: April 2019). Within the scope
of the preparation and management of tunnel safety documents, the Company announced a public
tender for the elaboration of risk analyses for tunnels, and for the preparation of protection and rescue
plans. In cooperation with emergency rescue departments, a periodical exercise was organised in the
Trojane Tunnel system. Together with Austrian colleagues, an exercise was organised in the entire Trojane
40 ANNUAL REPORT DARS d.d. 2007 BUSINESS REPORT

tunnel system. The prescribed procedures were carried out in order to remedy emergency conditions
in the Company’s systems (road slipperiness, outages of communication and audio systems, measuring
instruments for the Service Centre, and visibility).
New weather stations were incorporated in the road weather system at the following locations: Kozarje
turnoff, Višnja gora slope, Sava Šenjakob, and Verd. In autumn, the Department began to upgrade the
existing telecommunication links of the Road Safety Centre from a modem connection to an optical
network.
A mobile system for traffic supervision during road closures was put into operation. The system is
designed primarily to inform users on the current situation in the closure area.
In line with the first action plan for the implementation of an electronic free-flow toll collection system with
conditions for interoperability in the EU (Resolution of 29 June 2006 adopted by the Government of RS),
a concept for the implementation of electronic free-flow toll collection on motorways and expressways
using DSRC technology (DARS, April 2007) was designed, and relevant investment and design-technical
documents were elaborated for the so-called intermediate level of implementation of electronic toll
collection at existing toll stations for vehicles of all toll classes. On 19 July 2007 the Government of RS
adopted a new Action Plan, whose final goal is the implementation of satellite toll collection for freight
vehicles in the motorway and parallel networks. Owing to the new orientations, the Department prepared
new assessments of traffic flows at existing toll stations, which shall be required to adapt to the free
passage of freight vehicles.
Telecommunications Project and Telecommunications Department
In 2007 the Company began to market telecommunication lines and entered the market of electronic
communications as a telecommunications operator. Optical fibres were leased to a large number of
providers for periods of 3 to 10 years. Within the scope of marketing activities, the Company established
connections to major city centres (Ljubljana, Maribor, Kranj, Koper), as well as connections to other
providers in areas without motorways and without their own optical fibres (Vrba — Podtabor and the
connection to the Pesnica toll station).
The Department prepared a business plan for marketing capacities and colocations, as well as a research
study for the setup of a DWDM network, which operates on the principle of combining wavelengths and
allows for the marketing of various capacities. The system also allows for the uniform supervision of
the entire telecommunications network for the Company’s own needs, and a faster transmission speed
in case of technologically sophisticated forms of toll collection and consequently higher demands
for the undisturbed operation of the Company. This has set the foundations for the development of
telecommunication activities of DARS d.d. as potentially one of the most powerful infrastructure operators
in the country.
The first connection was established on the level of wavelength combining of signals on the Dunajska
— GriË route for the needs of redundancy storage of data, where employees were acquainted with the
system and its possibilities. The IP telephony system, which enables substantially larger functionalities
than traditional solutions, was installed in Murska Sobota. The IP platform itself allows for the convergence
of services.
A connection to traffic light intersections was established, providing insight into occurrences on city
entry roads for the needs of the Business Information Centre.
Telecommunications equipment was upgraded for the needs of redundancy links for the transmission of
tolls and other urgent transmissions of data ensuring the undisturbed operation of the Company.
In 2007 the Company continued to implement the project aimed at reducing telephony costs by the
inclusion of internal links between DARS’ commuter centres.
41 ANNUAL REPORT DARS d.d. 2007 BUSINESS REPORT

A new 48-fibre optical cable was installed on a section of the Karavanke Tunnel. Its purpose will be to
function as a tunnel cable connecting electricity niches with the optical cable. The Telecommunications
Department also carried out rehabilitation and protection works on the optical network in order to prevent
any network interruptions, made all the necessary changes in the network to facilitate the connection of
road weather stations and stationary speed meters, and made any necessary enlargements on distribution
boards to ensure the undisturbed operation of the Company and the marketing of its services.
With the aim of reducing speed on motorways in the Republic of Slovenia, the Company set up, in
cooperation with the Ministry of Internal Affairs, 17 measuring points for stationary speed meters and
the direct transmission of information from eleven locations at police headquarters.
Within the scope of regular maintenance of forty-five telecommunication hubs, the Telecommunications
Department provided for the adequate settlement of contractual relations with external maintenance
personnel in order to ensure the maintenance of commuter centres and transmission systems, and the
lease of telecommunication lines.
Traffic Surveillance and Management Department
The organisation of work in the Traffic Surveillance and Management Department was adapted to the
needs of regular maintenance and reconstruction works on the electric/machine equipment of motorways
and intelligent transport systems.
The tasks of the Department include controlling and regulating traffic, organising and performing
maintenance works on electric/machine equipment and systems defined as road equipment under
the Public Roads Act, which includes rehabilitation works on road equipment and participation in the
construction of road equipment on new motorway sections and facilities.
The Department began to upgrade standards relating to the maintenance of electric/machine
equipment.
In power distribution companies, changes were introduced in tariff groups for individual tap-off points. l
The Department carried out the supervision and maintenance of the Ljubelj Tunnel (ordered by DRSC).
General repairs and parametering of SICK equipment in tunnels were performed by the Company’s own
staff.
The Company conducted a public tender and selected a contractor for the transfer of functions from the
Control Centre in Postojna to the Traffic Surveillance and Management Center at Kozina. This project is
scheduled for completion in June 2008.
The Department’s expert staff participated in reconstruction works in line with the Annual Motorway
Development and Reconstruction Plan, the preparation of research projects for reconstruction works, in
reviews of project documents, and at operational meetings for new construction projects.
Information Technology Department (IT)
The renewal of the Company’s entire computer infrastructure was continued, its hardware and
software harmonised, and some specific applications were purchased for individual users. A number of
activities were focused on raising the reliability of critical systems and rationalising printer operations
(equipment).
42 ANNUAL REPORT DARS d.d. 2007 BUSINESS REPORT

Some segments of the business-financial information system Microsoft Business Solutions Navision were
upgraded in order to increase operating efficiency and facilitate links with subsystems used by other
departments. The Department continued to consolidate the application for the calculation of salaries
and other earnings. The system was upgraded with additional reports and certain changes allowing
users greater flexibility in their operations and in searching for desired data. Several minor changes and
upgradings were made in programme groups already being used (e.g. upgrading of the data exchange
system for the needs of ordering credit via the Company’s website, changes in the human resources
section, such as assessment of work performance, calculation and issue of decisions on annual leave. In
the sales section, improvements were introduced in the process of issuing post-paid invoices. Preparations
are under way for transfer to a more recent database version and its placement into a state of high
availability, which is expected to be completed in 2008.
In other information systems providing support to business operations, emphasis was primarily laid on
the upgrading of processes and applications for warehousing and inventory accounting based on the new
Rules on Inventory Accounting. Additional support was provided to the processes of ordering by contract,
requests for issue from the warehouse, and requests for the collection of materials from the warehouse.
New procedures were also introduced in requests for the collection of materials via work orders. The
application for the monitoring of incoming/outgoing mail was upgraded, and is now supported within
the scope of the document system, which contains modules for following meetings of the Management,
delegating tasks, monitoring contracts, conducting the electronic liquidation of accounts, and keeping
electronic archives of documents. Intensive activities were under way in the segment of the system for
the registration of working time, where the functionalities were upgraded for the preparation and transfer
of data to the salary calculation system.
In the system segment, the Department continued to consolidate and virtualise its server equipment.
High availability was established for critical server systems such as the E-mail server and the data server.
The system for making safety copies was optimised. A system for surveillance of the network and server
hardware was established. A secondary disk field was set up at another location and the transfer of data
was enabled between the primary and secondary disk fields. The reorganisation of the active register
was completed and all locations were transferred to the dynamic (DHCP) system of network address
allocation.
Motorway Maintenance Department
Regular Motorway Maintenance
Due to the relatively mild winter in the 2006/2007 season, the use of gritting materials was considerably
below the average quantities. Favourable winter weather conditions allowed for the performance of works
usually carried out in the spring and fall seasons.
In spring, all major maintenance works were organised in manner allowing for their completion by the
summer season. Works were performed on a daily basis, with due consideration for those days when
increased traffic was expected due to holidays or tourist peak days. On these days, maintenance works
which did not obstruct traffic were performed. In addition to regular maintenance works, reconstruction
and rehabilitation works on road structures and facilities were also carried out.
A number of motorway sections celebrated 10 years of service in 2007, which means that some works
were also performed within the scope of troubleshooting in the warranty period. All of these processes —
regular maintenance, rehabilitation and reconstruction works, and the elimination of deficiencies — were
organised well in advance and carried out according to plan.
Several other maintenance works were also performed, i.e. repair of cracks and potholes, painting of lane
marking, and the rehabilitation of platforms in rest areas.
43 ANNUAL REPORT DARS d.d. 2007 BUSINESS REPORT

Owing to the exceptional increase in heavy vehicle traffic, roads began to deteriorate quickly. The need
for rehabilitation works is rapidly appearing on the motorway in the Štajerska and Pomurje areas.
Intensive efforts were devoted in 2007 to dealing with the lack of parking space for heavy freight vehicles,
particularly on the motorway section in the Štajerska area. This called for the additional engagement of
employees at the Motorway Maintenance Centre Slovenske Konjice.
A new section of the Gorenjska leg of the motorway (Podtabor — PeraËica) in a length of 3.0 km was given
over to traffic. On 31 December 2007, as many as 525,398 equivalent kilometres of motorway and other
roads were being managed by DARS d.d..
Within the scope of implemented projects, the following tasks were completed in 2007:
• a work order programme for monitoring the performance of works was implemented and is being
executed in all motorway maintenance centres,
• a work order programme for monitoring machine equipment was executed up to a phase enabling its
application in all motorway maintenance centres in 2008,
• a project for the management of public utility devices was completed and provides for the systematic
performance of tasks in this area during daily work,
• specialised teams carried out works in 2007 on ground markings, cleaning of tunnels, cleaning and
inspection of gutters. A team was trained to operate a crack-filling machine.
Intensive efforts were devoted to the maintenance of rest areas. The Company began to redefine its
relations with lessees (Petrol, OMV). A precise inventory of conditions in rest areas was conducted.
The Preliminary Works Department carried out all tasks relating to the protection of roads as defined in
the Roads Act (Chapter V — Protection of Public Roads and Traffic), and resolved insurance issues relating
to liability and claims for damages caused by traffic participants on motorways. Other tasks performed
by the Department included:
• the preparation of specific offers for subcontractors or contractors of DARS,
• the elaboration of pricelists of works, which was transferred to the Sales and Marketing Department
during the course of the year,
• the preparation of opinions regarding motorway closures.
Motorway Operation
In 2007, two plans were adopted in connection with the operation of motorways and expressways:
• a regional safety and rescue plan in case of major traffic accidents on motorways in the Posavje region
(adopted by the Administration of RS for Civil Protection and Disaster Relief, Brežice branch), and
• a regional safety and rescue plan in case of major traffic accidents on motorways in the Primorska
region (adopted by the Administration of RS for Civil Protection and Disaster Relief, Koper branch).
Together with the Regional safety and rescue plan for the Western Štajerska region adopted in 2006,
three regional safety and rescue plans were in place at the end of 2007. In other regions (Kranj, Maribor,
Ljubljana, Murska Sobota), the Company prepared, together with competent branches, expert bases for
the preparation of regional safety and rescue plans in case of major traffic accidents on motorways.
In 2007 all works on motorways and expressways and all maintenance works were carried out under road
closures, which are regulated by the Rules on the marking and protection of works on public roads and
obstacles in road traffic (Official Gazette of RS, no. 116/2006). Throughout the year, the Company issued
a total of 128 road closure orders for major works (rehabilitation, oversurfacing, elimination of defects
in the warranty period, and similar), while regular maintenance works and interventions are carried out
under daily closures.
44 ANNUAL REPORT DARS d.d. 2007 BUSINESS REPORT

In connection with the supervision of conditions on motorways and their traffic regulation, expert reports
for closures and traffic restrictions on motorways and expressways were examined, and initiatives and
proposals for modifications and improvements in traffic regulation and management were resolved,
including initiatives for the installation of tourist signalisation.
In performing tasks related to the construction and rehabilitation of motorways and other roads,
the Company participated in technical inspections and acceptance procedures for constructed and
rehabilitated motorways and expressways. Of particular importance was the Company’s cooperation in
determining the responsibilities of operators of facilities and equipment that are not an integral part of
motorways, as well as its participation in inspections of motorways and expressways before expiry of the
warranty period.
Owing to the amended Regulations on traffic signalisation and equipment on public roads, an increased
number of tourist signalisation installations were set up in 2007 along motorways and expressways for
significant cultural, environmental and tourist destinations of national importance.
Based on an examination of traffic conditions, the Company substantiated and carried out the installation
of traffic signalisation prohibiting the overtaking of freight vehicles on motorways in the fifth transport
corridor. The signalisation was furnished with an explanatory table specifying the hourly periods of validity
of the prohibition. It is assessed that these prohibitions have had a positive effect on traffic conditions.
The criterion for the installation of such signalisation was based on total traffic loads and the volume
of heavy freight vehicles. It was decided that the overtaking of freight vehicles will be prohibited on
motorways with more than 3000 freight vehicles per day.
In 2007 the Republic of Slovenia abolished its internal borders, which meant that DARS as the authority
responsible for the operation and maintenance of motorways and expressways had to provide for the
undisturbed flow of traffic through the former international border crossings of Šentilj, Karavanke,
Vrtojba, FernetiËi and Škofije.
The Company performed tasks related to public authorisation, including the issue of permits and
approvals set forth in relevant measures for the protection of motorways and expressways, as well as
traffic on such roads, in line with the Public Roads Act; issued terms and conditions as well as approvals
of project documents in conformity with the Public Roads Act and the Building Construction Act (ZGO-
1); and performed activities related to the granting of easement for land interventions in the vicinity of
motorways and expressways.
45 ANNUAL REPORT DARS d.d. 2007 BUSINESS REPORT

Environmental Management
Environmental Protection
Noise
In 2007, noise barriers continued to be erected simultaneously with the construction of new roads, while
some were erected alongside older motorway sections that had been constructed without noise barriers.
Most of the additional noise barriers were erected in the vicinity of Ljubljana and Maribor.
Protection of Waters
In 2007 the Company carried out all maintenance works required to prevent any negative impacts on
ground water. No incidences of water pollution occurred in 2007. Facilities were cleaned (oil containment
devices, reservoirs). Some minor traffic accidents occurred in which the possibility of damage due to
hazardous substances was present, but was prevented in due time.
Gas Emissions
Gas emissions are not critical and are monitored by automatically controlled tunnel ventilation systems.
Environmental Impacts of Road Gritting
In order to prevent slippery roads and ensure good road conditions in winter, roads are gritted in winter
using various gritting materials. Theoretically, these materials affect the ground, the quality of surface
and ground water, flora, fauna, humans, facilities (road lanes, bridges, viaducts and buildings), as well as
vehicles. Studies conducted in the past have shown that road salting has a small impact on ground water,
as the salt is diluted by a factor of 100 to 500.
The consumption of gritting materials in 2007 was substantially lower than in the previous year.
46 ANNUAL REPORT DARS d.d. 2007 BUSINESS REPORT

Human Resources Management
Staff Age and Education Structure
On 31 December 2007 the Company had 1,128 employees, of which 294 were females (26.06%) and 834
were males (73.94%).
Staff Age Structure
Age
Number of Share (%) Cumulative number
employees
of employees
21 to 25 years 37 3.28 37
26 to 30 years 108 9.57 145
31 to 35 years 207 18.35 352
36 to 40 years 206 18.26 558
41 to 45 years 194 17.20 752
46 to 50 years 162 14.36 914
51 years and over 214 18.97 1,128
TOTAL 1,128 100.00 1,128
Staff Education Structure
Education Number of employees Share (%)
Primary 26 2.30
Vocational 517 45.83
Secondary 401 35.55
Higher 68 6.03
College and university 110 9.75
Master’s degree 5 0.44
PhD degree 1 0.09
TOTAL 1,128 100.00
47 ANNUAL REPORT DARS d.d. 2007 BUSINESS REPORT

Staff Recruitments and Departures
In 2007 the Company recruited 81 new employees: 25 with a vocational education, 34 with a secondary
education, 3 with a higher education, 17 with a college or university education, and 2 with a Master’s
degree. 60 employees left the Company: 20 went into retirement, 18 were permanent redundancies, 11
resigned, 5 were dismissed, 3 were extraordinarily dismissed, one was on study leave, and two completed
a fixed term of employment.
Education Recruitments Departures
Primary - 7
Vocational 25 29
Secondary 34 13
Higher 3 5
College and university 17 6
Master’s degree 2 -
TOTAL 81 60
Training
Employee training in 2007 was primarily focused on participation in those forms of training that provide
for the acquisition of business skills, the mastering of new technologies, and the development and
performance of new services. Compulsory forms of education, training and advanced training of employees
were organised in line with requirements for the fulfilment of labour-related legal requirements.
Human Resources Management in 2007
The Company’s employees are one of the key factors guaranteeing the attainment of our strategic goals.
The development of key groups of employees as well as the optimum use of all human resources potential
are both of major significance. In the past year, staff development tasks were focused on:
• developing the skills of all employees needed to attain the development and business goals of the
Company,
• developing the required skills of employees working at toll collection points in order to ensure mobility,
staff transfer, and gradual staff restructuring,
• developing various key groups of employees for the acceptance of more responsible professional and
managerial tasks, thus ensuring the continuity of staff potentials and the reduction of business risks.
Additional education and training courses will provide for a more flexible staff structure and the
professional skills necessary to harmonise the knowledge and qualifications of our staff with the required
education level desired by the Company, expand the Company’s activities, introduce new services,
optimise job positions to meet productivity standards and organisational requirements, and satisfy the
needs of motorway users.
48 ANNUAL REPORT DARS d.d. 2007 BUSINESS REPORT

Outlook for the Future
The future development of DARS d.d. will continue to be based on its fundamental activities currently
being performed. The objective of the Company’s development is to increase cost effectiveness in the
performance of concession activities, and to search for additional market opportunities through the
development of new services.
Implementation of the Motorway Construction Program
The mission and strategy of DARS d.d. regarding the construction of new motorways, which it performs on
behalf of the state, have not essentially changed and continue to be: to construct the motorway network
defined in the National Motorway Construction Program in the shortest possible time, at minimum cost,
and within the framework of available resources.
The Company will continue to provide high-quality financial engineering by raising loans and issuing
bonds, as well as ensuring the settlement of all overdue liabilities. In doing so, the Company will regularly
inform the owner and contracting authority on the financial standing of the motorway project.
Motorway Management and Maintenance
The maintenance and management of motorways will become increasingly more important in future
as the motorway network continues to expand. Once individual sections of the motorway network are
completed, interconnected and linked to the European motorway system, the Company will be capable of
providing integral services to motorway users.
As the motorway network expands, the scope of regular maintenance of the motorway network will
increase as well. Improved productivity can only be ensured by technological development and the
optimisation of business processes. In order to optimise driving conditions within the network, we shall
have to find the right balance between the need to keep roads clear, particularly in winter, costs and, last
but not least, environmental protection.
A special challenge awaiting us in future is the development of the toll collection system. The Government
of the Republic of Slovenia has adopted a policy supporting the implementation of free-flow electronic toll
collection in 2008. With its experience in the management of the existing toll system, the Company can
provide valuable professional support in the development of the new toll collection system.
Development of New Services
For the purpose of generating additional revenues, the Company shall, alongside its basic activities,
develop complementary services. Consonantly with its currently predominant activities defined in the
Concession Agreement and in the Agreement on the Performance of Contracts, these services will enable
the further development of the Company.
49 ANNUAL REPORT DARS d.d. 2007 BUSINESS REPORT

50 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

51 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT
FINANCIAL
REPORT

Notes to the Financial Statements
The objective of financial statements is to provide information about the financial position, performance
and changes in the financial position of an entity that will be useful to a wide range of users in making
economic decisions. Financial statements prepared for this purpose meet the common needs of most
users, but do not provide all the information they may need to make economic decisions. For these reasons
and to ensure more complete informing, financial statements must contain notes and supplementary
schedules and other information providing readers with additional data and information needed for
decision-making.
Pursuant to the Motorway Company in the Republic of Slovenia Act (ZDARS — UPB-1, Official Gazette of RS,
no. 20/2004; hereinafter: ZDARS), DARS was on 1 January 2004 transformed from a public enterprise
into a public limited company functioning as a regular commercial company under the Companies Act. Its
sole founder and owner of its shares is the Republic of Slovenia, which is represented by the Government
of the Republic of Slovenia.
Pursuant to the amended ZDARS, the State and the Company concluded two contracts:
• the Agreement on the performance of tasks relating to motorway construction and reconstruction,
financial engineering and related tasks under the National Motorway Construction Programme, signed
on 29 April 2004 (hereinafter: Agreement on the Performance of Contracts); and
• the Concession Agreement on motorway operation and maintenance in the Republic of Slovenia, signed
on 29 April 2004 (hereinafter: Concession Agreement).
Agreement on the Performance of Contracts
The Agreement on the Performance of Contracts regulates the relationship between the State and the
Company in the performance of tasks under contracts concluded with the State. These tasks are set out
in Annexes I, II and III to the Agreement, as follows:
• Annex I — tasks performed by the Company on behalf and for the account of the State, namely:
• tasks related to spatial planning and motorway placing, and
• tasks related to the acquisition of land and other real property for the needs of motorway
construction;
• Annex II — tasks performed by the Company on its own behalf and for the account of the State,
namely:
• tasks related to the preparation of project documentation required for motorway construction and
reconstruction,
• tasks related to motorway construction and reconstruction,
• tasks related to financial engineering, and
• other tasks related to contract performance;
• Annex III — tasks performed by the Company either on its own behalf and for the account of the State,
or on behalf and for the account of the State, namely:
• tasks related to the management and use of real property acquired in connection with motorway
construction, but not used entirely for motorway construction or not required for motorway operation
and maintenance.
The Company also performs, on its own behalf and for the account of the State, tasks related to motorway
construction and reconstruction under the National Motorway Construction Programme (hereinafter:
NPIAC), and manages funds earmarked for motorway construction and the repayment of borrowings
for their construction (including the borrowings and debt securities issued for the purpose of financing
motorway construction and reconstruction).
52 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

For the performance of tasks under the Agreement on the Performance of Contracts, the Company is
entitled to a compensation in an amount equal to 5.49 % of the value of works set out in the current
Annual Motorway Development and Rehabilitation Plan (hereinafter: LP ROAC). Advance payments of
compensation are made monthly with the prior authorisation of the Ministry of Transport for the transfer
of funds from the account designated for the financing of motorway construction to the account of the
Company. Final settlement is made on the basis of the value of works actually carried out and reported
annually to the National Assembly.
Concession Agreement
The Concession Agreement regulates mutual relations in connection with the concession for motorway
operation and maintenance, as well as the payment of concession tax. Motorway operation and
maintenance comprises:
• motorway operation,
• regular maintenance of motorways and facilities on motorways, and
• toll collection.
A concession for regular motorway maintenance and operation is granted for all motorways maintained
and operated by the Company at the time of signing the Concession Agreement, as well as for all motorways
or motorway sections yet to be constructed under NPIAC in the Republic of Slovenia.
The concessionaire (DARS) performs the Concession Agreement on its own behalf and for its own
account, and pays the concession grantor (the State) a concession tax defined under the Agreement
as the difference between tolls collected and other revenues on the one side, and recognised expenses
arising from concession activities, taking into account the normal return on equity, on the other side.
Recognised expenses are determined on the basis of:
• the number of vehicles passing through toll stations,
• the annual revenues from tolls collected,
• the number of kilometres of motorways operated by the Company, and
• the opportunity cost of capital (interest rate).
Payments of concession tax are made monthly with the prior authorisation of the Ministry of Transport
for the transfer of funds from the account of the Company to the account designated for the financing of
motorway construction, where they shall be used for servicing borrowings for motorway construction.
Final settlement is made on the basis of actual revenues and approved expenses not later than 8 days
after receipt of the auditor’s opinion on the annual report of the Company for the respective year.
In performing the Concession Agreement, the Company is entitled to use any state-owned facilities required
for toll collection and motorway maintenance. The Concession Agreement stipulates that any equipment
and devices under the concession are to be constructed or purchased on behalf of the State, provided
they are intended for motorways whose construction is in progress at the time of signing the Concession
Agreement, or was scheduled to begin in 2004. The ownership of equipment and devices mentioned in the
previous sentence shall subsequently be transferred from the State to the concessionaire. Such physical
assets comprise mobile equipment and devices required for toll collection and motorway maintenance,
the ETC and IT systems, the driver information system, and signalisation. Other concession equipment
and devices shall subsequently be provided by the Company (as a commercial company) from its own
operating revenues. Upon expiry of the Concession Agreement, the State shall purchase the previously
mentioned equipment and devices at the market prices determined by an independent appraiser.
53 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Accounting Policies
The financial statements of the Company, together with notes and disclosures of the most important
categories, have been prepared in accordance with the Companies Act and the accounting and reporting
requirements of the 2006 Slovene Accounting Standards (hereinafter: SAS 2006), provided they are not
contrary to other regulations, ZDARS, or the Accounting Act.
The financial statements and notes thereto provide a true and fair view of the Company’s operations.
The fundamental accounting assumptions that have been taken into account are accrual basis and going
concern. The principal qualitative characteristics of financial statements and thus of the entire accounting
are understandability, relevance, reliability and comparability.
The financial statements have been prepared observing the principles of prudence, substance over form,
and materiality, as well as the presentation of true and fair view of assets and liabilities of the Company.
Pursuant to ZDARS, the Company is required to keep separate accounts for activities pursued on behalf
of the State. For this purpose the Company keeps separate accounts of state-owned assets and liabilities
under management, and company-owned assets and liabilities. The Act also requires the Company to
prepare consolidated financial statements for external users, while, for internal reporting purposes,
separate financial statements are compiled for stated-owned assets and liabilities under management,
and for company-owned assets and liabilities.
The financial statements for state-owned assets and liabilities under management must be in compliance
not only with the Companies Act and Slovene Accounting Standards, but also with ZDARS and the
Accounting Act.
Borrowings and debt securities issued by the Company on its own behalf and for the account of the
State for the financing of motorway construction and reconstruction are — pursuant to ZDARS and the
Agreement on the Performance of Contracts — included in the Balance Sheet showing state-owned assets
and liabilities, as they are in fact investments in state-owned assets. Liabilities arising in connection with
such borrowings and debt securities are also guaranteed by the State.
The applied accounting policies are first explained for the Company’s assets, and then separately for
state-owned assets.
Foreign currency-denominated items have been translated into euros using the middle exchange rate of
the Bank of Slovenia applicable on the last day of the accounting period.
The financial statements are compiled in euros.
54 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Valutation Methods Applied to the Company-Owned Balance Sheet Items
Intangible Assets
Intangible assets comprise investments in acquired industrial property rights (licenses, software).
Intangible assets are initially recognised at cost, which comprises their purchase price and any costs
incurred in preparing them for their intended use.
Intangible assets are usually not revalued due to their increase in value.
Intangible assets are presented in the balance sheet as a collective item at their carrying amount, which is
the amount at which an asset is recognised after deducting any accumulated amortisation from its cost.
Property, Plant and Equipment
Property, plant and equipment comprise land, buildings, equipment, and tangible assets being constructed
or manufactured, and are presented in the balance sheet as a collective item, by type of assets, at their
carrying amount, which is the amount at which an asset is recognised after deducting any accumulated
depreciation from its cost. Assets that can no longer be used because they are defective, obsolete, or
similar, are permanently withdrawn from use.
An item of property, plant and equipment is, on initial recognition, measured at cost. This comprises its
purchase price, import duties and non-refundable purchase taxes, as well as any directly attributable
costs of bringing them into working condition.
Subsequent expenses associated with property, plant and equipment increase their cost, if they
increase the future economic benefits generated by such assets in excess of the originally assessed
ones. Subsequent expenses that result in an extension of the useful life of an item of property, plant and
equipment reduce its accumulated depreciation.
Repair and maintenance costs incurred to restore or maintain the future economic benefits expected from
the originally assessed standard of performance of an existing item of property, plant and equipment are
recognised as expenses when incurred.
The difference between the net disposal proceeds and the carrying amount of an item of property, plant
and equipment disposed of shall be recognised as operating revenues from revaluation if the first exceeds
the latter, or as operating expenses from revaluation if the latter exceeds the first.
In 2007, company-owned property, plant and equipment were not revalued.
55 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Depreciation / Amortisation
The carrying amount of property, plant and equipment and intangible assets is reduced by the amount of
depreciation / amortisation. The depreciation of property, plant and equipment and the amortisation of
intangible assets are calculated based on their cost.
The depreciation of an item of property, plant and equipment begins on the first day of the following
month after it has been made available for use. The amortisation of an item of intangible assets begins
when the asset is available for use.
Amortisation / depreciation is calculated for each asset separately, using the straight line method. Land is
not depreciated. Intangible assets and property, plant and equipment are amortised / depreciated at the
following rates set by the Management Board:
Asset Amortisation/depreciation Amortisation/depreciation
rate up to 1 January 2007 rate as of 1 January 2007
Software 50 % 50 %
Buildings 5 % 3 %
Parts of construction buildings / 6 %
Equipment (office furnishings,
workshop equipment, maintenance 25 % 20 %
equipment, office supplies, etc.)
ETC system equipment and devices 25 % 20 %
Computers and computer equipment 50 % 50 %
Personal cars 12.50 % 20 %
Machinery 25 % 20 %
Low-value assets 25 % 20 %
The depreciation/amortisation rates specified in Resolution no. 64/27 of 22 March 2005 as adopted by
the Management Board shall be applicable for the property, plant and equipment and intangible assets
that began to be depreciated / amortised prior to the effective date of ZDDPO-2 until they are fully
amortised / depreciated.
The annual amortisation / depreciation charge is recognised as an expense.
Property, plant and equipment and intangible assets shall continue to be depreciated amortised until an
asset is fully depreciated/amortised, even if the asset is no longer in use or is withdrawn from use.
56 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Long-term Investments
Long-term investments are held by the Company to earn returns and thus increase its financial revenue.
Long-term investments are initially recognised at cost, i.e. the amount of money invested.
In accordance with ZDARS, the Company is required to invest any surplus cash in state securities or its
own securities, debt securities, or deposit with first-class banks domiciled in the Republic of Slovenia.
Deferred tax assets
Deferred tax assets are the amounts of income tax recoverable in future periods. Deferred tax assets are
recognised for all deductible temporary differences to the extent that it is probable that taxable profit will
be available, against which the deductible temporary difference can be utilised.
Insignificant deferred tax assets are not recognised.
Inventories
An inventory unit of materials is initially recognised at cost, which comprises its purchase price, import
duties and other directly attributable costs of acquisition. The purchase price is reduced by any discounts
received.
On initial recognition, the elements of cost and the total cost of an item of inventory derive from the
historical cost. Subsequently, if the latest purchase prices in the accounting period differ from prices
and/or costs of same-class items of inventory, the moving average price method is used.
57 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Short-term investments
In accordance with ZDARS, the Company is required to invest any surplus cash in state or own securities,
debt securities or deposits with first-class banks domiciled in the Republic of Slovenia.
Short-term investments are initially recognised at cost, i.e. the amount of money invested.
Foreign currency-denominated short-term investments are translated into national currency on the date
they are incurred using the applicable middle exchange rate of the Bank of Slovenia.
Short-term Operating Receivables
Short-term operating receivables comprise short-term trade receivables from domestic and foreign
customers, interest receivable on short-term sight deposits and investments, advances given, VAT refunds
receivable, and other receivables.
Short-term operating receivables are initially recognised at amounts indicated in relevant documents,
provided their collection can be assumed. Foreign currency-denominated receivables are translated into
national currency on the date they are incurred using the valid middle exchange rate of the Bank of
Slovenia.
At the balance sheet date, receivables are reassessed on the basis of objective evidence of their
collectability. For doubtful and disputable receivables, allowances are set up or receivables are fully
written off. Allowances are charged against operating expenses from revaluation in the full amount of
such receivables.
Cash
This item comprises cash in hand, cash in banks, cash in transit, and call deposits. Cash in transit comprises
cash that is being transferred from the Company to the bank, but will not be credited to the Company’s
account within the same day.
Domestic and foreign currency-denominated cash is presented separately. The first is stated at nominal
value, whilst the latter is translated into national currency using the middle exchange rate of the Bank of
Slovenia applicable on the date of receipt.
Equity
Equity is the Company’s liability to owners which falls due if the Company ceases to operate. Equity
consists of called-up capital, capital surplus, revenue reserves, and temporarily undistributed net profit
for the period.
Capital surplus comprises the value of real assets transferred by the State to the Company upon its
transformation for the purpose of motorway operation and maintenance, and the general capital
revaluation adjustment, which was transferred to capital surplus on 1 January 2006.
Legal reserves are set up in accordance with the Companies Act and must amount to at least 10 per cent
of the Company’s share capital. Other revenue reserves comprise non-nominal capital and are increased
annually through the appropriation of net profit.
Equity components and changes in equity are disclosed in the Statement of Changes in Equity.
58 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Provisions and long-term accrued costs and deferred revenue
Provisions are formed by an entity for its present obligations that arise from obligating past events and
are expected to be settled in a period that cannot be defined with certainty, but a reliable estimate can be
made of the amount of obligations. Long-term provisions are set up for accrued costs or expenses and are
decreased by the amounts of costs or expenses for which they were formed in accordance with the plan.
Long-term accrued costs and deferred revenue comprise deferred revenue expected to cover estimated
expenses in a period of more than one year.
In accordance with SAS 2006, the Company set up long-term provisions for termination benefits upon
retirement and jubilee benefits based on actuarial calculations. These were made as at 31 December
2007 for each and every employee, taking into account the costs of termination benefits upon retirement
under their employment contracts, as well as the costs of all jubilee benefits that an employee would
receive for his/her period of service until retirement.
In 2006, the Company joined a pension scheme for collective supplementary pension insurance. In
accordance with an agreement concluded with trade unions, all the Company’s employees were entitled
to join this scheme, except those being of retirement age on 31 December 2006, i.e. 50 years (women)
and 55 years (men). The employer shall pay to these employees a lump sum equal to the interest-free
premiums it would have to pay on their behalf had they been included in the pension scheme. For this
purpose, the Company also set up long-term provisions.
Long-term provisions for long-term accrued costs are also set up with regard to the possible unfavourable
outcome of lawsuits related to motorway operation and maintenance, as well as labour lawsuits.
In 2005, 2006 and 2007, the Company set up long-term provisions for long-term accrued costs related to
employment relationships that will arise upon the introduction of the new satellite toll system. Such a toll
system, under which motorway users pay a toll based on the number of kilometres driven, is — pursuant
to a decision adopted by the Government at its 51st session of 22 November 2001 — the ultimate vision
and objective of the Slovene motorway system. The deadline for the implementation of the new satellite
toll system is August 2009 for freight traffic and December 2010 for other vehicles.
The Company has assessed that, as a consequence of the changed toll system, some 300 employees
will become redundant. Based on the Company’s current needs, some of them will be retrained for other
professions, primarily in the area of road supervision. Sixteen employees will have the possibility of
purchasing additional years of service. The Company has thus accrued one quarter of such costs in the
2007 costs and has accordingly set up long-term provisions.
The Company has assessed that an estimated 100 employees will receive severance pay. One quarter of
such costs has therefore been accrued for this purpose in the 2007 costs, and long-term provisions have
therefore been set up accordingly. The remaining quarter of estimated costs arising from employment
relations will gradually be charged against the Company’s operating results in 2008.
Long-term accrued costs and deferred revenue comprise long-term deferred revenue in the amount cofinanced
by users of the ETC (electronic toll collection) system. This co-financing relates to long-term
provisions for warranties granted on the sale of electronic tags since 2004. At the end of each accounting
period, long-term accrued costs and deferred revenue are restated to the present value of expenses
required to settle the liability. Up to 31 December 2003, long-term provisions were included in the balance
sheet of state-owned assets and liabilities under management.
The item of long-term accrued costs and deferred revenue includes long-term deferred revenue from
earmarked grants received by the Company for the acquisition of assets. They are intended to cover
depreciation expense of such assets and are used by being transferred to operating revenue.
59 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Short-term Operating Liabilities
Short-term operating liabilities comprise short-term trade payables relating to motorway operation and
maintenance, payables to employees, and payables to the State for taxes and contributions.
Short-term operating liabilities are initially recognised at amounts indicated in relevant documents,
provided that creditors require their settlement. Foreign currency-denominated liabilities are translated
into national currency on the date they are incurred using the applicable middle exchange rate of the
Bank of Slovenia.
Short-term Accrued and Deferred Items
Deferred costs and accrued revenue are amounts incurred, but not yet charged against an entity’s
activities and they do not yet affect its profit or loss.
Short-term accrued costs and deferred revenue comprise items of accrued costs and short-term deferred
revenue.
Accrued costs are costs that affect the Company’s profit or loss for the period, but are not expected to
be incurred until the next accounting period. They are accrued on the basis of liabilities recognised in
advance. In 2007, short-term accrued costs and deferred revenue were set up on the basis of accrued
costs of severance pays for business reasons and accrued costs of services.
Short-term deferred revenue arises when services to be rendered in the future have already been invoiced
or even paid. The Company’s short-term deferred revenue comprises revenue from tolls collected in the
form of top-ups (via ETC and DARS tags) made in 2007 but not used in the same year. These will be
recognised as deferred revenue until they have actually been used by road users.
Mutual Relations Between the State and the Company
The Balance Sheet showing company-owned assets and liabilities also comprises receivables due from the
State in respect of the use of company-owned assets to finance state-owned assets under management.
The Balance Sheet showing state-owned assets under management also comprises liabilities of the same
amount owed by the State to the Company.
The Balance Sheet showing company-owned assets and liabilities also comprises liabilities to the State
associated with the use of state-owned assets under management to finance company-owned assets. The
Balance Sheet showing state-owned assets and liabilities comprises receivables of the same amount due
from the Company to the State.
The Consolidated Balance Sheet does not include these transactions, as they are offset against one
other.
60 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Revenue
Revenue is recognised if increases in economic benefits during the accounting period are associated with
increases in assets or decreases in liabilities, and if they can be reliably measured. Revenue is recognised
provided it can be reasonably assumed that it will eventually result in cash receipts. Revenue is classified
into operating revenue, financial revenue, and other revenue.
Net sales comprise:
• tolls collected;
• rentals paid by various service providers to use motorway service areas;
• revenue from motorway closures and extraordinary freight transports;
• revenue from easement for the installation of facilities and devices of public importance alongside
motorways;
• revenue from telecommunications;
• revenue under the Agreement on the Performance of Contracts. The Company is entitled to a
compensation for the performance of tasks thereunder, which is expressed as a percentage of the value
of all works set out in the current AP ROAC. Advance payments of compensation are made monthly
with prior authorisation of the Ministry of Transport to transfer funds from the account designated for
the financing of motorway construction to the account of the Company. Final settlement is done on
the basis of the value of works actually carried out and reported to the National Assembly on a yearly
basis. Based on an analysis of the Company’s actual costs incurred in 2003 and the estimated costs of
engineers in 2004, the compensation for the years 2004, 2005, 2006 and 2007 was determined at
5.49 % of the value of motorway construction and reconstruction works.
The contracting parties shall revise the above-mentioned percentage every two years. If the costs
actually incurred by the Company exceed those recognised under the Agreement on the Performance
of Contracts by more than 5 % with respect to the tasks to be performed by the Company thereunder,
each contracting party may request that the compensation be changed, but only for the subsequent
year. In March 2006, the Government of the Republic of Slovenia set up an expert group with the task
of reviewing the actually recognised expenses under the Agreement on the Performance of Contracts
and the Concession Agreement.
The compensation can be increased or decreased by 10 % to reflect any cost savings or overruns against
the approved costs of the investment programme. The incentive, however, may not exceed 1 % of the
investment value approved by the Minister of Transport, and applies only to projects approved after the
Agreement on the Performance of Contracts was signed. The initial compensation is determined on the
basis of historical data, but can be subsequently adjusted in case of justified changes in expenses. Such
adjustments can not have a retroactive effect, which means that each contracting party shall assume
its own share of risk for the current financial year;
• other operating revenue.
Financial revenue comprises interest revenue and foreign exchange gains. Financial revenue is recognised,
unless there is justified doubt as to its amount and collectability. Interest revenue is recognised on a time
proportion basis taking account of the outstanding principal amount and the applicable interest rate.
Other revenue comprises unusual items increasing profit or loss for the period (damages received,
remuneration for the employment of disabled persons above the quota,..).
61 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Expenses
Expenses are recognised if decreases in economic benefits during the accounting period are associated
with decreases in assets or increases in liabilities, and if they can be reliably measured. Expenses shall be
classified into operating expenses, financial expenses and other expenses.
The Company’s operating expenses comprise expenses associated with motorway operation and
maintenance under the Concession Agreement. They comprise:
• costs of materials;
• costs of services, which include:
• concession tax payable under the Concession Agreement, which regulates the relationship between
the State and the Company as its concessionaire for motorway operation and maintenance. The
concessionaire (DARS d.d.) executes the Concession Agreement on its own behalf and for its own
account, for which it pays the concession grantor (the Republic of Slovenia) a concession tax
expressed as the difference between tolls collected and other revenue generated by the Company
on the one hand, and expenses incurred in executing the Concession Agreement, taking into account
a normal return on equity, on the other hand. These are recognised on the basis of the number of
vehicles passing through tall booths, the annual revenue from tolls collected, and the number of
kilometres of motorways operated by the Company. Concession tax is paid by the Company monthly
to the account designated for the financing of construction and reconstruction under the Agreement
on the Performance of Contracts. Final settlement of the annual amount of concession tax is made
on the basis of actual revenue and approved expenses within 8 days of receipt of the Auditor’s Report
on the financial statements of the Company for the respective year;
• the costs of engineers supervising motorway construction, reconstruction and maintenance. Under
the Agreement on the Performance of Contracts and the Concession Agreement, these costs are
borne by the Company, for which it is entitled to a compensation under the Agreement on the
Performance of Contracts;
• the costs of services required for motorway maintenance and operation, and toll collection;
• labour costs;
• amortisation / depreciation expenses (for more information, see notes to intangible assets and property,
plant and equipment); and
• other operating expenses.
Financial expenses comprise interest expenses and foreign exchange losses. They are recognised when
accrued, regardless of related payments.
Other expenses comprise unusual items that decrease the profit or loss for the period.
62 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Income Tax
Income tax is calculated in accordance with the Income Tax Act. The tax base is the profit for the year,
increased by non-deductible expenses and decreased by tax relief. Tax is payable on the base at a rate of
23 %.
Cash Flow Statement
The Cash Flow Statement has been prepared using the indirect method on the basis of the Balance Sheets
as at 31 December 2007 and as at 31 December 2006, and on the basis of the Income Statement for 2007,
as well as from additional information required for adjustments to be made to inflows and outflows.
The Cash Flow Statement comprises cash flows from operating, investing and financing activities.
63 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Valutation Method Applied to the State-owned Balance Sheet Items under Management
Property, Plant and Equipment under Management
Property, plant and equipment are presented in the Balance Sheet as a collective item, by type of assets,
at their carrying amount, which is the amount at which an asset is recognised after deducting any
accumulated depreciation from its cost. Assets that can no longer be used because they are defective,
obsolete, or similar, are permanently withdrawn from use.
Property, plant and equipment under management are classified into:
1. Land, comprising:
• land of motorway maintenance centres that has been partly eliminated;
2. Buildings, comprising capitalised motorways or motorways taken into use:
a) substructure, comprising:
• land acquired,
• construction works carried out on the substructure,
• costs of archaeological excavations,
• costs of technical documentation,
• costs of financing motorway construction,
• costs of supervising motorway construction, etc.;
b) surface structure, comprising:
• construction works carried out on the surface structure or roadway,
• safety fences and sound barriers,
• vertical and horizontal signalisation,
• traffic management system, emergency call system and telecommunications system;
c) facilities, comprising:
• viaducts and bridges,
• overpasses and underpasses,
• tunnels with equipment;
d) buildings on motorways, comprising:
• motorway maintenance centres,
• toll collection stations, including booths and roofing,
• other buildings (transformer substations);
e) facilities operated by others and comprising:
• property, plant and equipment for infrastructure and facilities which, under applicable law, cannot
be operated by the Company and will therefore be transferred to authorised operators, such as:
• infrastructure and facilities for water course regulation,
• infrastructure and facilities for the relocation of plumbing, electrical and other utility systems,
• infrastructure and facilities related to deviations and road works (such as construction of
overpasses and underpasses, service bays, etc.) on roads other than motorways (state,
municipal, local roads, etc.) and railways carried out by the Company for the purpose of motorway
construction or reconstruction;
3. Other motorway equipment, comprising:
• ongoing investments in the equipment of motorway maintenance centres,
• state-owned equipment to be permanently withdrawn from use because it is defective, obsolete, or
similar;
4. Property, plant and equipment under construction comprise motorways, facilities and motorway
maintenance centres under construction.
64 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

The cost of motorways constructed or under construction comprises the following:
• the revalued cost and accumulated depreciation of motorways transferred by the State to the Company
for management upon its establishment in 1994; and
• the costs, at invoice value, required to bring motorways, facilities or maintenance centres into service:
costs related to technical-document preparation, land acquisition, valuation of compensation payable to
third persons for land acquired, change of land use, engineering (until the end of 2003), the Agreement
for the Performance of Contracts (the agency services provided), and financing (interest on borrowings
drawn down until the completion of construction works, bank charges on borrowings) incurred until final
acceptance by the investor, as well as other construction-related costs (archaeological excavations,
audits, quality controls, etc.).
The above-mentioned cost also comprises the revaluation of cost carried out by use of the cost of living
index up to the end of 2001.
The depreciation of property, plant and equipment under management is carried out on an item-by-item
basis and begins on the first day of the month following the month in which the asset was first made
available for use. Property, plant and equipment under management start being used on the day when a
motorway is opened for traffic, even if there are still defects to be corrected.
The Company employs the straight-line depreciation method.
The basis for depreciation is the full cost of property, plant and equipment under management. The basis
for depreciation also includes capitalised subsequent investments that increase the future economic
benefits of property, plant and equipment under management. Subsequent expenses related to existing
motorways that result in an extension of their useful life (reconstruction of roadways, facilities and
equipment) reduce their accumulated depreciation.
The legal basis for depreciation of state-owned assets under management by the Company is the
Accounting Act (Official Gazette of RS, no. 23/1999) and, on the basis thereof, the adopted “Rules on
the method and rates of depreciation applying to intangible assets and property, plant and equipment”
(Official Gazette of RS, no. 45/2005). Pursuant to the above mentioned rules, the Company used the
following depreciation rates in 2007:
Item of property, plant and equipment
Depreciation rate
Motorway parts:
surface structure 5 %
substructure -
facilities (tunnels, viaducts, bridges) 2 %
Facilities operated by others -
Buildings 3 % / 4 %
State-owned equipment (average rate) 20.9 %
Property, plant and equipment transferred to authorised operators are not depreciated (they will be
transferred at their cost to authorised operators, who will decide how to revalue and depreciate them).
The depreciation expense related to property, plant and equipment under management is charged against
long-term liabilities to the State, as this expense is not included in the price for motorway usage and the
State has not allocated any special funds for this purpose.
Property, plant and equipment under management were not revalued in 2007.
65 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Short-term Investments in other Entities
In line with ZDARS, the Company is required to invest any surplus cash in State or own securities, debt
securities, or deposits with first-class banks domiciled in Slovenia.
Short-term investments denominated in foreign currency are translated into the national currency
(euro) using the middle exchange rate of the Bank of Slovenia applicable on the balance sheet date.
Any exchange rate difference arising from translation increases or decreases the Company’s long-term
liabilities to the State.
Short-term Operating Receivables
Short-term operating receivables comprise short-term trade receivables, short-term input VAT receivable,
short-term European funds receivable, and short-term interest receivable on sight and other deposits.
Short-term operating receivables are initially recognised at amounts indicated in relevant documents,
provided their collection can be assumed. Interest is calculated in accordance with the relevant contract
upon maturity and on the balance sheet date. There are no foreign currency-denominated receivables
among short-term trade receivables under state-owned assets managed by the Company.
Cash
This item comprises balances in bank accounts denominated in local or foreign currencies. The latter
are translated into local currency using the middle exchange rate of the Bank of Slovenia applicable
on the balance sheet date. Exchange rate differences arising from translation increase or decrease the
Company’s long-term liabilities to the State.
Mutual Relations Between the State and the Company
The Balance Sheet showing state-owned assets under management of the Company also comprises
the State’s receivables due from the Company associated with the use of state-owned assets under
management to finance company-owned assets. The Balance Sheet showing company-owned assets and
liabilities comprises the Company’s liabilities to the State in the same amount.
The Balance Sheet showing state-owned assets under management also comprises liabilities to the
Company associated with the use of company-owned assets to finance state-owned assets under
management. The Balance Sheet showing company-owned assets and liabilities comprises the Company’s
receivables due from the State in the same amount.
The Consolidated Balance Sheet does not include the above-mentioned transactions, as they are offset
against one other.
Provisions and Long-term Accrued Costs and Deferred Revenues
Long-term accrued costs and deferred revenues set up in the previous periods are reduced by the amounts
used in accordance with the plan and purpose for which they were set up.
Until 1 January 2004, long-term accrued costs and deferred revenue were set up under state-owned
assets under management in the amount equal to the share co-financed by the users of ETC tags. These
are long-term provisions for guarantees given for ETC tags or liabilities to reimburse the non-depreciated
portion of purchase money for such tags in the event that they are returned by users (the Company has
given users a period of 7 years to return the tags). These long-term provisions are initially recognised
66 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

in the amount paid by users, which only partly covers the full cost of an ETC tag. At the end of each
accounting period, long-term provisions are restated to reflect the present value of expenses expected to
be required to settle liabilities. In previous periods, reversed long-term provisions were used to purchase
new ETC tags, and simultaneously increased the Company’s liabilities to the State arising from the portion
of tolls earmarked for investments in property, plant and equipment.
As of 1 January 2004, ETC tags are no longer purchased with state-owned assets under management,
but instead with company-owned assets, which is why the related provisions have been included in the
Balance Sheet under company-owned assets. The reversal of long-term provisions set up in previous
periods represents an additional source of funds to finance motorway construction.
Long-term Financial Liabilities to banks Arising from Borrowings to Acquire Property, Plant and
Equipment under Management
This item comprises long-term domestic and foreign borrowings to finance motorway construction.
Long-term financial liabilities maturing in a period of less than one year after the balance sheet date are
recorded under short-term financial liabilities.
Long-term financial liabilities are initially recognised at the amounts indicated in relevant documents
evidencing the receipt of cash. Foreign currency-denominated liabilities are translated into national
currency on the date they are incurred using the applicable middle exchange rate of the Bank of
Slovenia.
At the end of an accounting period, long-term financial liabilities related to foreign borrowings are
translated into national currency using the middle exchange rate of the Bank of Slovenia applicable on
the balance sheet date. The revaluation of long-term financial liabilities decreases the Company’s longterm
liability to the State.
Interest paid on long-term borrowings to finance motorway construction increases the cost of relevant
motorway sections for as long as they are under construction. Once they are opened for traffic, the
interest paid on borrowings decreases the Company’s liabilities by the amount of interest paid.
Pursuant to ZDARS and the Agreement on the Performance of Contracts, the Company borrows to finance
motorway construction and reconstruction on its own behalf and for the account of the State. Liabilities
arising from these borrowings are secured by the State’s guarantee.
Long-term financial liabilities from bonds issued to finance the acquisition of property, plant and
equipment under management
Long-term financial liabilities from bonds are initially recognised at amounts indicated in relevant
documents evidencing the receipt of cash.
Interest paid on bonds issued to finance motorway construction increases the cost of relevant motorway
sections for as long as they are under construction. Once they are opened to traffic, the interest paid
decreases the liabilities by the amount of interest paid.
Pursuant to ZDARS and the Agreement on the Performance of Contracts, the Company issues bonds to
finance motorway construction and reconstruction on its own behalf and for the account of the State.
Liabilities arising in connection with these bonds are secured by the State’s guarantee.
67 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Long-term Operating Liabilities Arising from State-owned assets under Management
These liabilities comprise the following:
• the value of constructed motorways and motorways under construction transferred by the State to the
Company for management upon its establishment;
• the effects of revaluation of capitalised constructed motorways and motorways under construction
carried out in 1994-2001 by use of the cost of living index;
• funds earmarked for motorway construction and reconstruction (interest-bearing until 31 March 2002)
obtained pursuant to the Act on the Allocation of Funds for the Construction of Roads Determined in
the National Motorway Construction Programme (Official Gazette of RS, nos. 57/98 and 18/02);
• collected tolls which, pursuant to the current LP ROAC and the budget, were up to 31 December 2003
earmarked for motorway construction, reconstruction of roadways, facilities and equipment (repairs
and maintenance), repayment of principal of and interest on investment borrowings, as well as for the
acquisition of property, plant and equipment (motorway maintenance equipment);
• insurance benefits received until 31 December 2002 as a compensation for damages on motorways;
• interest received on investments made and on sight deposits in the account designated for motorway
construction;
• the effects of a subsequent revaluation of constructed motorways and motorways under construction
carried out in 2001;
• concession tax, which is, pursuant to ZDARS, determined in the Concession Agreement as a long-term
source for the repayment of principal of and interest on borrowings for motorway construction and
reconstruction;
• the paid-in surplus related to bonds issued;
• funds received from the Cohesion Fund for motorway construction;
• value of land obtained free of charge for motorway construction;
• funds obtained from the European Fund for Regional Development — technical assistance,
• financial support from the European Union for the TEN-T project, and
• European Union funds for the TEMPO international programme.
Long-term operating liabilities arising from state-owned assets under management are then reduced by
the following:
• the amount of revaluation of long-term domestic and foreign borrowings;
• the amount of revaluation of balances in foreign currency-denominated accounts and certificates;
• writedowns related to assets under management, given that this expense is not included in the price of
motorway usage and that no funds are provided by the State to cover it;
• the value of property, plant and equipment transferred free of charge to other operators;
• interest paid on borrowings and bonds issued for the acquisition of property, plant and equipment
under management; and
• the amount of additional allowance for constructed motorways and motorways under construction
transferred by the State to the Company for management upon the Company’s establishment
(reassessment carried out in 2001).
68 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Long-term Operating Liabilities Arising from Municipality-owned Assets under Management
These liabilities are recorded in the amount of co-financing of motorway construction by local communities
and public utilities.
Short-term Financial Liabilities to Banks
Short-term financial liabilities to banks arising from borrowings for the acquisition of property, plant and
equipment under management comprise the short-term portion of long-term financial liabilities maturing
in the following year.
Other short-term financial liabilities to banks comprise interest accrued by 31 December 2007 on
borrowings and bonds issued to finance motorway construction and reconstruction.
Short-term Trade Payables
Short-term trade payables comprise trade payables to domestic and foreign contractors of construction
works, as well as purchase price and compensation payable to third persons for land acquired.
Short-term trade payables are initially recognised at amounts indicated in relevant documents, provided
that creditors demand their settlement.
69 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Financial Statements of DARS d.d.
The Company has prepared the following financial statements for tax and statistical purposes:
• Consolidated Balance Sheet,
• Income Statement of DARS d.d.,
• Consolidated Cash Flow Statement,
• Statement of Changes in Equity,
• Statement of Accumulated Profit and Proposed Appropriation
Pursuant to the Motorway Company of the Republic of Slovenia Act (ZDARS) and the Accountancy Act,
the Company has to subdivide the balance sheet for the needs of the internal users into:
• a balance sheet showing assets and liabilities owned by the Company, and
• a balance sheet showing assets and liabilities of the Republic of Slovenia under the management of
DARS d.d.
The company-owned assets comprise assets, receivables, investments and cash required by the Company
for motorway operation and maintenance.
The state-owned assets under management of the Company comprise the following property, plant and
equipment under management: motorways constructed or under construction, receivable, investments,
and cash required by the Company for construction. The owner of these assets, the Republic of Slovenia,
transferred the assets to the Company for management, but without transferring the right of ownership.
The Company does not prepare the income statement for the state-owned assets under management of
the Company, because any “revenue” generated under the Agreement on the Performance of Contracts
represents an additional source of funding for motorway construction, and any “expenses” incurred
under the respective agreement increase the cost of motorways.
70 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Consolidated balance sheet as at 31 December 2007
in EUR 31 Dec 2007 31 Dec 2006
(without cents)
ASSETS 5,127,370,135 4,645,562,033
A. LONG-TERM ASSETS 5,038,613,218 4,571,132,471
I. Intangible assets and long-term deferred costs and accrued revenue 354,472 208,608
1. Concessions, patents, licences, trademarks and similar rights 354,472 208,608
II. Property, plant and equipment 5,036,611,072 4,569,220,650
1. Land and buildings 3,820,366,135 3,799,367,305
a) Land 772,592 767,605
b) Buildings 3,819,593,543 3,798,599,701
3. Other plant and equipment 17,094,399 17,403,377
4. Property, plant and equipment being acquired 1,199,150,538 752,449,968
a) Property, plant and equipment in the course of construction 1,199,150,538 752,449,968
IV. Long-term investments 674,641 668,632
1. Long-term investments, excluding loans 674,641 668,632
c) Other shares and interests 964 964
d) Other long-term investments 673,677 667,668
VI. Deferred tax assets 973,033 1,034,581
B. CURRENT ASSETS 87,494,442 73,389,352
II. Inventories 1,893,165 1,844,569
1. Material 1,893,165 1,844,569
III. Short-term investments 47,038,209 13,435,552
1. Short-term investments, excluding loans 47,038,209 13,435,552
c) Other short-term investments 47,038,209 13,435,552
IV. Short-term operating receivables 33,483,829 43,883,527
2. Short-term trade receivables 6,968,818 5,691,357
3. Short-term operating receivables due from others 26,515,011 38,192,169
V. Cash 5,079,239 14,225,705
C. SHORT-TERM DEFERRED COSTS AND ACCRUED REVENUE 1,262,475 1,040,210
OFF BALANCE SHEET ITEMS 397,346,760 357,238,088
71 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

in EUR 31 Dec 2007 31 Dec 2006
(without cents)
LIABILITIES 5,127,370,135 4,645,562,033
A. EQUITY 49,023,704 40,295,545
I. Called-up capital 212,823 212,819
1. Share capital 212,823 212,819
II. Capital surplus 26,428,057 26,428,057
III. Revenue reserves 17,130,755 11,878,691
1. Legal reserves 21,282 21,282
5. Other revenue reserves 17,109,473 11,857,409
VI. Net profit or loss for the period 5,252,069 1,775,978
B. PROVISIONS AND LONG-TERM ACCRUED COSTS AND DEFERRED REVENUE 5,738,414 5,359,612
1. Provisions for pensions and similar liabilities 1,778,730 1,757,135
2. Other provisions 3,773,735 3,564,541
3. Long-term accrued costs and deferred revenue 185,949 37,936
C. LONG-TERM LIABILITIES 4,847,996,919 4,351,201,166
I. Long-term financial liabilities 2,198,663,420 1,714,476,809
2. Long-term financial liabilities to banks 2,038,297,872 1,554,111,261
3. Long-term financial liabilities from bonds 160,365,548 160,365,548
II. Long-term operating liabilities 2,649,333,499 2,636,724,357
6. Long-term liabilities for state-owned assets under management 2,626,780,055 2,614,951,901
7. Long-term liabilities for municipality-owned assets under management 20,748,712 19,993,272
8. Long-term liabilities for other assets under management 1,804,732 1,779,184
D. SHORT-TERM LIABILITIES 215,659,170 241,161,903
II. Short-term financial liabilities 77,216,776 70,537,374
2. Short-term financial liabilities to banks 77,216,776 70,537,374
III. Short-term operating liabilities 138,442,394 170,624,529
2. Short-term trade payables 132,573,558 167,591,752
4. Short-term advances payable 16,059 13,959
5. Other short-term operating liabilities 5,852,777 3,018,818
E. SHORT-TERM ACCRUED COSTS AND DEFERED REVENUE 8,951,928 7,543,806
OFF BALANCE SHEET ITEMS 397,346,760 357,238,088
72 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Income statement of DARS d.d. for the period from 1 January to 31 December 2007
in EUR 2007 2006
(without cents)
1. Net sales 208,879,897 175,320,633
Revenue from tolls 174,719,492 151,951,470
Revenue from rentals 4,380,392 3,988,316
Revenue from road closure and overweight load transports 1,406,321 1,229,410
Revenue from easements 162,073 67,069
Revenue under agency agreement 26,398,091 17,882,299
Other sales revenue 1,813,528 202,069
4. Other operating revenue 2,244,314 3,014,804
5. Costs of goods, materials and services -161,388,468 -136,712,889
a) Costs of materials -9,487,267 -7,494,520
b) Costs of services -29,264,001 -26,113,222
c) Costs of charges under the Concession Agreement -122,637,200 -103,105,148
6. Labour costs -27,557,899 -26,178,259
a) Payroll costs -19,186,004 -18,860,817
b) Social security costs -3,793,581 -3,352,638
c) Other labour costs -4,578,314 -3,964,804
7. Writedowns -8,074,260 -9,314,981
a) Depreciation and amortisation expense -8,002,348 -9,265,291
b) Operating expenses for revaluation of intangible assets and
property, plant and equipment
-12,752 -17,617
c) Operating expenses for revaluation of current operating assets -59,160 -32,072
8. Other operating expenses -1,834,670 -2,015,955
10. Financial revenue from loans 1,367,283 890,654
b) Financial revenue from loans to others 1,367,283 890,654
11. Financial revenue from operating receivables 14,647 1,186,717
b) Financial revenue from operating receivables due from others 14,647 1,186,717
13. Financial expenses for financial liabilities 0 -43,169
d) Financial expenses for other financial liabilities 0 -43,169
14. Financial expenses for operating liabilities -11,701 -46,897
b) Financial expenses for trade payables -3,032 -5,507
c) Financial expenses for other operating liabilities -8,669 -41,389
15. Other revenue 85,168 24,912
16. Other expenses -17,471 -4,510
17. Income tax -3,141,155 -2,059,536
18. Deferred taxes -61,548 97,437
19. Net profit or loss for the period 10,504,137 4,158,963
73 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Consolidated cash flow statement for the period from 1 January to 31 December 2007
v EUR (without cents) 2007 2006
A. Cash flows from operating activities
a) Items of income statement
Operating revenues (except from revaluation) and financial revenues
from operating receivables
Operating expenses excluding amortisation / depreciation (except from
revaluation) and financial expenses from operating liabilities
212,559,422 179,547,066
-190,869,368 -164,990,581
Income taxes and other taxes not included in operating expenses -3,202,703 -1,962,099
b) Changes in net operating assets in balance sheet items (including accruals
and deferrals, provisions and deferred tax liabilities)
18,487,351 12,594,387
Opening less closing operating receivables 11,892,036 -20,976,516
Opening less closing deferred costs and accrued revenues -222,265 -936,889
Opening less closing deferred tax assets 61,548 -97,437
Opening less closing inventories -48,597 -317,888
Closing less opening operating liabilities -22,926,160 117,364,739
Closing less opening accrued costs and deferred revenue, and provisions 1,786,924 4,912,508
-9,456,513 99,948,516
c) Net cash from operating activities (a + b) 9,030,838 112,542,902
B. Cash flows from investing activities
a) Cash receipts from investing activities
Interest and dividends received from investing activities -2,177,366 339,174
Cash receipts from disposal of property, plant and equipment 26,560 49,347
Cash receipts from disposal of long-term investments 0 12,479,196
Cash receipts from disposal of short-term investments 673,542,723 489,520,949
671,391,917 502,388,666
b) Cash payments from investing activities
Cash payment to acquire intangible assets -368,466 -182,485
Cash payment to acquire property, plant and equipment -475,183,604 -399,799,337
Cash payments to acquire short-term investments -707,145,380 -461,446,223
-1,182,697,451 -861,428,044
c) Net cash from investing activities (a + b) -511,305,534 -359,039,378
C. Cash flows from financing activities
a) Cash receipts from financing activities
Cash proceeds from increase in long-term financial liabilities 546,780,633 440,540,035
Cash proceeds from increase in short-term financial liabilities 198,081,310 61,289,183
744,861,943 501,829,218
b) Cash payments from financing activities
nterest paid on financing activities 3,353,167 1,832,653
Cash repayments of short-term financial liabilities -253,310,902 -241,342,087
Dividends and other profit shares paid -1,775,978 -2,580,150
-251,733,713 -242,089,585
c) Net cash from financing activities (a + b) 493,128,230 259,739,633
D. Closing balance of cash 5,079,239 14,225,705
x) Net increase/decrease in cash (sum total of net cash Ac, Bc and Cc) -9,146,466 13,243,157
y) Opening balance of cash 14,225,705 982,548
74 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Statement of changes in equity in the period from 1 January to 31 December 2007
in EUR
(without cents)
I. II. III. V. VI.
Capital Revenue reserves Retained
surplus
earnings
Called-up
capital
Net profit or
loss for the
period
1. 1. 4. 1.
Legal
reserves
Share
capital
Other
revenue
reserves
Net profit for
the period
Total equity
A. 1 Balance at 31
December 2006
a) Changes due to
transition to euro
212,819 26,428,057 21,282 11,857,409 0 1,775,978 40,295,545
4 -4 0
A. 2 Balance at 1 January
2007
212,823 26,428,057 21,282 11,857,405 1,775,978 0 40,295,545
B. Transfer to equity
d) Net profit or loss for
the period 2007
10,504,137 10,504,137
C. Transfer within equity
b) Allocation of net
profit for the period
2007 based on
a decision of the
Management Board
and Supervisory
Board
5,252,068 -5,252,068 0
D. Transfer from equity
a) Dividend payment for
2006
-1,775,978 -1,775,978
E. Balance at 31
December 2007
212,823 26,428,057 21,282 17,109,473 0 5,252,069 49,023,704
ACCUMULATED PROFIT at
31 December 2007
5.252.069 5.252.069
75 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Statement of changes in equity in the period from 1 January to 31 December 2006
in EUR
(without cents)
I. II. III. V. VI.
Capital Revenue reserves Retained
surplus
earnings
Called-up
capital
1. 1. 4.
Legal
reserves
Share
capital
Other
revenue
reserves
Net profit or
loss for the
period
Total equity
A. 1 Balance at 31
December 2005
a) Restatement due
to transition to SAS
2006
212,819 26,428,057 21,282 10,081,431 0 2,580,150 39,323,739
-607,006 -607,006
A. 2 Balance at 1
January 2006
212,819 26,428,057 21,282 10,081,431 1,973,144 0 38,716,733
B. Transfer to equity
d) Net profit or loss
for the period 2006
4,158,963 4,158,963
C. Transfer within equity
b) Allocation of net
profit for the period
2006 based on
a decision of the
Management Board
and Supervisory
Board
c) Loss cover as a
deductible item of
equity
1,775,978 -1,775,978 0
607,006 -607,006 0
D. Transfer from equity
a) Dividend payment for
2005
-2,580,150 -2,580,150
E. Balance at 31
December 2006
212,819 26,428,057 21,282 11,857,409 0 1,775,978 40,295,545
ACCOUNTING PROFIT at
31 December 2006
1,775,978 1,775,978
76 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Statement of accumulated profit and proposed appropriation
in EUR 2007 2006
(without cents)
A. NET PROFIT FOR THE PERIOD 2007 10,504,137 4,158,963
». NET LOSS BROUGHT FORWARD 0 607,006
F. INCREASE IN REVENUE RESERVES 5,252,068 1,775,978
4. Increase in other revenue reserves 5,252,068 1,775,978
G. ACCUMULATED PROFIT AT 31 DECEMBER 2007 5,252,069 1,775,978
In accordance with the provisions of the Companies Act, the Management Board of the Company passed
a decision to appropriate one half of net profit or loss for the period to other revenue reserves. The
Supervisory Board approved the proposed appropriation of net profit to other revenue reserves that are
adequately recorded in the Company’s financial statements.
The Management Board and Supervisory Board of the Company proposed that the General Meeting
approve the appropriation of accumulated profit for 2007 in the amount of EUR 5,252,069 as follows:
• EUR 5,147,840 for dividend payout,
• EUR 104,229 for remuneration to the members of the Company’s Supervisory Board.
77 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Notes to the Financial Statemants
Notes to the balance sheet of DARS d.d.
Balance sheet of DARS d.d. as at 31 December 2007
in EUR 31 Dec 2007 31 Dec 2006
(without cents)
ASSETS 78,735,447 79,754,459
A. LONG-TERM ASSETS 20,080,985 18,505,852
I. Intangible assets and long-term deferred costs and accrued revenue 354,472 208,608
1. Concessions, patents, licences, trademarks and similar rights 354,472 208,608
II. Property, plant and equipment 18,078,839 16,594,031
1. Land and buildings 1,471,946 1,342,250
a) Land 29,923 24,936
b) Buildings 1,442,022 1,317,314
3. Other plant and equipment 15,576,787 14,762,728
4. Property, plant and equipment being acquired 1,030,107 489,053
a) Property, plant and equipment in the course of construction 1,030,107 489,053
IV. Long-term investments 674,641 668,632
1. Long-term investments, excluding loans 674,641 668,632
c) Other shares and interests 964 964
d) Other long-term investments 673,677 667,668
VI. Deferred tax assets 973,033 1,034,581
B. CURRENT ASSETS 54,419,700 35,132,133
II. Inventories 1,893,165 1,844,568
1. Material 1,893,165 1,844,568
III. Short-term investments 40,738,209 13,435,552
1. Short-term investments, excluding loans 40,738,209 13,435,552
c) Other short-term investments 40,738,209 13,435,552
IV. Short-term operating receivables 6,829,916 6,383,291
2. Short-term trade receivables 5,996,933 5,191,932
3. Short-term operating receivables due from others 832,983 1,191,359
V. Cash 4,958,410 13,468,721
C. SHORT-TERM DEFERRED COSTS AND ACCRUED REVENUE 1,262,475 1,040,114
D. RECEIVABLES FROM THE USE OF COMPANY-OWNED ASSETS
TO FINANCE STATE-OWNED ASSETS UNDER MANAGEMENT
2,972,287 25,076,359
OFF BALANCE SHEET ITEMS 21,035,446 6,334,456
78 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

in EUR 31 Dec 2007 31 Dec 2006
(without cents)
LIABILITIES 78,735,447 79,754,459
A. EQUITY 49,023,704 40,295,545
I. Called-up capital 212,823 212,819
1. Share capital 212,823 212,819
II. Capital surplus 26,428,057 26,428,057
III. Revenue reserves 17,130,755 11,878,691
1. Legal reserves 21,282 21,282
5. Other revenue reserves 17,109,473 11,857,409
VI. Net profit or loss for the period 5,252,069 1,775,978
B. PROVISIONS AND LONG-TERM ACCRUED COSTS AND DEFERRED REVENUE 5,641,273 4,888,448
1. Provisions for pensions and similar liabilities 1,778,730 1,757,135
2. Other provisions 3,676,594 3,093,377
3. Long-term accrued costs and deferred revenue 185,949 37,936
D. SHORT-TERM LIABILITIES 15,119,500 11,844,339
III. Short-term operating liabilities 15,119,500 11,844,339
2. Short-term trade payables 9,250,664 8,811,646
4. Short-term advances payable 16,059 13,959
5. Other short-term operating liabilities 5,852,777 3,018,734
E. SHORT-TERM ACCRUED COSTS AND DEFERRED REVENUE 8,950,970 7,536,837
F. LIABILITIES ARISING FROM THE USE OF STATE-OWNED ASSETS
UNDER MANAGEMENT TO FINANCE COMPANY-OWNED ASSETS
0 15,189,288
OFF BALANCE SHEET ITEMS 21,035,446 6,334,456
79 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Intangible assets
Intangible assets comprise computer software.
Movement in intangible assets in 2007:
in EUR Intangible Intangible Total
(without cents) assets — computer assets under
software
construction
Cost
Balance at 31 December 2006 1,472,594 0 1,472,594
Additions 368,466 368,466
Capitalisation 368,466 -368,466 0
Transfer between the items -14,824 -14,824
Elimination / disposal / writeoff -2,504 -2,504
Balance at 31 December 2007 1,823,732 0 1,823,732
Accumulated amortisation
Balance at 31 December 2006 1,263,986 0 1,263,986
Transfer between the items -14,824 -14,824
Amortisation charge 222,602 222,602
Elimination / disposal / writeoff -2,504 -2,504
Balance at 31 December 2007 1,469,260 0 1,469,260
Carrying amount
Balance at 31 December 2006 208,608 0 208,608
Balance at 31 December 2007 354,472 0 354,472
Major additions to intangible assets in 2007:
• acquisition of licences for HP EVA amounting to EUR 54,663,
• upgrade of the application »IS of schedule of fund utilisation« amounting to EUR 31,700,
• upgrade of the project information system DARS amounting to EUR 31,447 EUR,
• acquisition of the NNM network control system amounting to EUR 32,233 EUR,
• acquisition of the automatic vehicle queue detection system amounting to EUR 38,205,
• upgrade of the electronic document management system amounting to EUR 93,675,
• acquisition of the Helpdesk system amounting to EUR 17,474.
As at 31 December 2007, no item of intangible assets was pledged as security for liabilities.
80 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Property, plant and equipment
Movement in property, plant and equipment in 2007:
in EUR Land Buildings Equipment Equipment Property, plant Total
(without cents)
and permanently and equipment
low-value out of use under
assets
construction
Cost
Balance at 31 December 2006 24,936 1,866,557 65,520,299 1,403,290 489,053 69,304,135
Additions in 2007 9,096,486 9,096,486
Transfer of assets required for the
performance of activity under the
Concession Agreement from the register 217,184 52,021 269,205
of state-owned assets under management
to the register of company-owned assets
Capitalisation 4,987 65,702 8,484,743 -8,555,432 0
Transfer between the items -1,483,756 1,498,579 14,824
Disposals in 2007 (disposal, writeoff) -621,723 -899,959 -1,521,682
Balance at 31 December 2007 29,923 2,149,443 71,951,584 2,001,910 1,030,107 77,162,968
Accumulated depreciation
Balance at 31 December 2006 549,243 50,775,409 1,385,452 52,710,104
Major repairs, extension of useful life
Transfer of assets required for the
performance of activity under the
Concession Agreement from the register
of state-owned assets under management
to the register of company-owned assets
58,368 58,368
Transfer between the items -1,455,561 1,470,385 14,824
Depreciation charge in 2007 99,810 7,670,981 8,954 7,779,745
Disposals in 2007 (disposal, writeoff) -579,602 -899,310 -1,478,912
Balance at 31 December 2007 707,421 56,411,227 1,965,481 59,084,129
Carrying amount
Balance at 31 December 2006 24,936 1,317,314 14,744,890 17,838 489,053 16,594,031
Balance at 31 December 2007 29,923 1,442,022 15,540,357 36,430 1,030,107 18,078,839
Major additions to property, plant and equipment in 2007:
• acquisition of working, cargo and trailer vehicles amounting to EUR 3,529,957,
• acquisition of personal and combined vehicles amounting to EUR 1,237,870,
• acquisition of working machines, devices and attachments amounting to EUR 2,348,032,
• acquisition of computer equipment amounting to EUR 297,736,
• upgrade of the ETC (Electronic Toll Collection) system amounting to EUR 2,205,
• acquisition or refurbishment of assets required for motorway operation and maintenance amounting to
EUR 957,571, and
• acquisition of office furniture and other office equipment amounting to EUR 97,606.
As at 31 December 2007, no item of property, plant and equipment was pledged as security for
liabilities.
81 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Pursuant to the Concession Agreement, any equipment and devices required for its implementation shall
be constructed or acquired for the account of the State within the scope of motorway construction for
those motorway sections whose construction was in progress at the time of the signing of the Concession
Agreement, or started to be constructed in 2004. The title to the respective equipment and devices
shall be transferred by the concedent to the concessionaire. Pursuant to the Concession Agreement and
the Motorway Company of the Republic of Slovenia Act (ZDARS), the Company’s Management Board
adopted a resolution on the transfer, in 2007, of equipment and devices from the register of state-owned
property, plant and equipment under management of the Company to the register of company-owned
property, plant and equipment with the purpose of enabling the Company to perform the activities
under the Concession Agreement. The assets thus transferred were recorded at the carrying amount
of EUR 52,021. As the result of this transfer, the Company’s liabilities arising from state-owned assets
under management increased accordingly. When the Government of the State adopts a resolution on the
transfer of assets to the Company, the liabilities arising from the assets will decrease accordingly. On the
other hand, capital surplus will increase. In case of a transfer against payment, liabilities will be settled
by transfer of cash.
The transferred non-financial assets comprise equipment and devices required for motorway
maintenance.
The transfer of assets from the register of state-owned assets to the register of company-owned assets
at the carrying amount of EUR 158,816 refers to the Hrušica residential block whose ownership was
transferred, under contract, by the Republic of Slovenia to the Public Company for Road Maintenance in
1991.
At the year-end inventory of property, plant and equipment, an inventory deficit was found, of which the
cost amounted to EUR 3,148 and the carrying amount to EUR 7.
Long-term investments
Movement in long-term investments in 2007:
in EUR Other shares Other long-term Total
(without cents) and interests investments
Gross amount
Balance at 31 December 2006 964 667,668 668,632
Increase 6,009 6,010
Decrease
Balance at 31 December 2007 964 673,677 674,641
Net amount at 31 December 2006 964 667,668 668,632
Net amount at 31 December 2007 964 673,677 674,641
Other long-term investments comprise the bonds BCE09 issued by Banka Celje in the amount of EUR
673,677, with the coupon interest rate of 3.90% and the maturity of 5 years (the final maturity of bonds
is 15 April 2010).
82 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Deferred tax assets
Deferred tax assets arise from provisions for termination benefits upon retirement and jubilee benefits,
provisions for contingent claims, provisions for severance pays and purchase of insurance period for
redundancies upon the change in the tolling system, and provisions for potential return of ETC tags.
Movement in deferred tax assets in 2007:
in EUR
(without cents)
Balance at 1 January 2007 1,034,581
Change in provisions for termination benefits and jubilee benefits -14,013
Change in provisions for redundancies 27,551
Change in provisions for contingent claims -111,603
Change in provisions for return of ETC tags 36,517
Balance at 31 December 2007 973,033
Inventories
Inventories comprise inventories of materials, spare parts, low-value assets and packaging. Inventories
increased by 3% over the previous year’s figure at 31 December 2006. Inventories of materials represent
the major share in the structure of inventories, whereas inventories of spreading materials account for
44% of the total inventories of materials.
in EUR 31 Dec 2007 Share in % 31 Dec 2006 Index
(without cents)
Materials 1,359,361 72 1,381,346 98
Spare parts 165,507 9 151,998 109
Low-value assets and packaging 368,297 19 311,224 118
Total 1,893,165 100 1,844,568 103
As at 31 December 2007, no inventories were pledged as security for liabilities. The book value of
inventories does not exceed the cost at 31 December 2007. Inventories are current inventories.
Short-term investments in other entities
Short-term investments in other entities comprise:
• short-term deposits with banks in the amount of EUR 40,620,000 EUR, with the average maturity of 17
days and the average weighted interest rate of 4.58%, and
• a short-term over-night deposit with the bank in the amount of EUR 118,209 EUR, with the interest rate
of 3.25%.
83 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Short-term operating receivables
in EUR 31 Dec 2007 31 Dec 2006
(without cents)
Short-term trade receivables: 5,996,933 5,191,932
- toll receivable 5,165,110 4,309,415
- receivables from the use of motorway service areas 349,737 304,563
- receivables from road closure 256,463 527,098
- other short-term trade receivables 225,623 50,856
Short-term operating receivables due from others: 832,983 1,191,359
- advances receivable for operating current assets 6,103 4,924
- receivables from financial revenue 111,824 64,530
- input VAT receivable 549,914 524,808
- other receivables due from state institutions 79,805 489,272
-other short-term receivables 85,337 107,825
Total 6,829,916 6,383,291
The majority (76%) of short-term operating receivables includes tolls receivable and input VAT receivable
(8%) (VAT on invoices received for motorway operation and maintenance in December).
Short-term receivables due from state institutions include refunds receivable from the Health Insurance
Institute of Slovenia, and short-term receivables from financial revenue include interest receivable on
deposits and contract penalties.
Following the proposal of the commission in charge of inventory taking of receivables and liabilities,
uncollectible trade receivables in the amount of EUR 16,836 and toll deficit receivable from employees in
the amount of EUR 42,324 were written off as at 31 December 2007.
Breakdown of trade receivables by maturity:
in EUR not yet due overdue overdue in Total
(without cents) up to excess
60 days of 60days
Short-term trade receivables 5,420,820 482,813 93,300 5,996,933
As at 31 December 2007, no trade receivables were pledged as security for liabilities. Short-term trade
receivables are not secured and represent the Company’s current receivables.
An allowance for receivables has not been made.
84 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Cash
in EUR 31 Dec 2007 31 Dec 2006
(without cents)
Cash in bank 23,691 1,830,683
Call deposits 3,850,000 10,900,880
Cash in hand 295 62
Cash in toll booths 196,860 125,846
Cash in transit 887,564 611,250
Total 4,958,410 13,468,721
Cash in transit includes collected tolls not yet put in the Company’s transaction account.
Upon inventory taking of cash in transit from collected tolls as at 30 November 2007, the Company
reconciled the balance in the books with the actual balance in the amount of EUR 42,324.
Deferred costs and accrued revenue
Deferred costs and accrued revenue in the amount of EUR 1,262,475 comprise short-term deferred costs
that will be charged against profit or loss in future accounting periods.
Short-term deferred costs include:
• costs of lease of Microsoft software in the amount of EUR 191,555,
• costs of ETC tags purchased but not sold in 2007 in the amount of EUR 554,755 EUR, and
• costs of the final settlement of agent compensation for 2007 in the amount of EUR 506,373.
Receivables from the use of company-owned assets to finance state-owned assets under
management
Under the Company’s assets in the Balance Sheet, receivables due from the State in the amount of EUR
2,972,287 are recorded as receivables arising from the use of company-owned assets to finance stateowned
assets under management. Under state-owned assets under management in the Balance Sheet,
the State’s liabilities to the Company are recorded in the same amount.
The receivables comprise:
• a 2008 concession tax, transferred in advance, receivable in the amount of EUR 3,253,866,
• 2007 remuneration receivable under the Agreement on the Performance of Contracts in the amount of
EUR 1,020,465 EUR (this liability was settled in the beginning of 2008).
Off balance sheet items
Off balance sheet items comprise contingent receivables due from municipalities in the amount of EUR
2,422,402 and arising from unjustifiably invoiced and collected charges for the use of building sites,
including default interest. Following the initiative of the Company, the Constitutional Court annulled,
with its decision U-I-361-/2002-11 (Official Gazette of the Republic of Slovenia, 37/2004) some of the
ordinances issued by municipalities as well as the decisions of the Tax Administration of the Republic of
Slovenia.
Off balance sheet items also comprise contingent cash or receivables in the amount of EUR
18,613,044 arising from encashment of performance guarantees received for motorway operation and
maintenance.
85 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Equity
The movement in equity is shown in the Statement of Changes in Equity for the period from 1 January
2007 to 31 December 2007 on the page 75. Described in the relevant note are also the reasons for any
change in the items of equity. The equity is in its total amount a part of the Company’s net worth.
The equity reflects the Company’s financing from own resources and represents the Company’s liability
to its owners. It is determined by both the amounts invested by owners and the amounts generated in the
course of operation of the Company that belong to the owners.
The share capital of the Company is defined in the Articles of Association and registered in the court
register. It represents the contribution of the Republic of Slovenia as its sole shareholder. The share
capital of the Company amounts to EUR 212,823 and is divided into 5,100 non par value shares. As at
31 December 2007, the book value of a share amounted to EUR 9,612.49 and was higher by 21.66%
compared to the book value as at 31 December 2006. It has been calculated as a ratio between the total
amount of equity and the number of shares.
The initial shares give their holders the right to participate in the management of the Company, the right
to a profit share (dividend), and the right to a respective part of the remainder of assets upon liquidation
or bankruptcy of the Company. Based on the resolution of the General Meeting on the issue of shares,
subsequently issued shares may be bearer or registered shares, ordinary or preference shares. In case
of a change in equity, the share of votes held by the founder of the Company in the General Meeting shall
not fall under 51%.
In accordance with the resolution adopted by the General Meeting of the Company, the equity decreased
in 2007 by the amount of dividend payout and remuneration to the members of the Supervisory Board
totalling EUR 1,775,978.
Net profit or loss for the period amounted to EUR 10,504,137. In compliance with the Companies Act, the
Management Board decided to appropriate one half of net profit or loss for the period to other revenue
reserves. The Supervisory Board approved the proposed appropriation to other revenue reserves which
are recorded accordingly in the financial statements of the Company.
The Management Board and the Supervisory Board proposed that the General Meeting approve the
appropriation of 2007 accumulated profit in the amount of EUR 5,252,069 as follows:
• EUR 5,147,840 for dividend payout, and
• EUR 104,229 for remuneration to members of the Company’s Supervisory Board.
86 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Provisions and long-term accrued costs and deferred revenue
Movement in provisions and long-term accrued costs and deferred revenue in 2007:
in EUR Balance Use in 2007 Reversal Additional Balance
(without cents) 1 Jan 2007 in 2007 setting 31 Dec 2007
up in 2007
Claims relating to motorway
operation and maintenance
863,007 11,230 133,478 90,906 809,205
Claims relating to employment 521,288 88,873 318,710 57,581 171,286
Redundancies due to a change
in the toll system
Provisions for termination benefits
upon retirement
599,297 8,685 293,746 884,358
1,196,686 52,407 62,129 1,206,408
Provisions for jubilee benefits 524,646 60,055 55,405 519,996
Provisions for supplementary
pension insurance
Depreciation of holiday facilities
and apartments
35,804 15,974 32,497 52,327
37,936 12,692 160,705 185,949
Return of ETC tags 1,109,784 1,941 264,808 968,709 1,811,744
Total 4,888,448 243,172 725,681 1,721,678 5,641,273
Provisions and long-term accrued costs and deferred revenue were made as follows:
a) Provisions were made for long-term accrued costs of contingent loss arising from claims in association
with motorway operation and maintenance in the amount of EUR 809,205 and claims by employees
under labour disputes in the amount of EUR 171,286;
b) In 2007, provisions (the third quarter) were made in the amount of EUR 293,746 for long-term
accrued costs relating to employment as a result of a transition to the new satellite toll system. The
estimated number of redundancies due to the change in the toll system is 300. A number of redundant
employees will be requalified for other jobs, particularly for toll control, in line with internal needs. The
remaining quarter of estimated costs relating to employment will be charged against the results of the
Company’s operations in 2008.
c) Based on the actuarial calculation, provisions for termination benefits upon retirement and jubilee
benefits were made as at 31 December 2007 in the amount of EUR 117,534.
d) As at 31 December 2007, provisions were made in the amount of EUR 32,497 for termination pays
upon retirement to those employees not included in the pension scheme of collective supplementary
pension insurance under the agreement concluded between trade unions and the Company.
e) In previous periods, long-term accrued costs and deferred revenue were set up from donations in an
amount equal to the cost of holiday facilities and apartments to cover depreciation expense for holiday
facilities, including furniture, and apartments over the entire useful life. In 2007, these provisions were
reduced by depreciation expense in the amount of EUR 12,692 EUR. Additional provisions were set up
for the acquisition of furniture for holiday facilities in the amount of EUR 1,889 and for the transfer of
the Hrušica residential block, whose ownership had been transferred, under contract, by the Republic
of Slovenia to the Public Company for Road Maintenance in 1991, from the register of the state-owned
assets to the register of company-owned assets, in the carrying amount of EUR 158,816.
f) Provisions were made for contingent liabilities arising from the return of purchase money upon the
possible return of ETC tags in the amount of EUR 1,811,744 (the buyers of ETC tags are entitled to
return ETC tags within seven years from the date of purchase).
87 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Short-term operating liabilities
in EUR 31 Dec 2007
(without cents)
Trade payables 9,250,664
Advances payable 16,059
Payables to employees 1,817,257
Payables to the state 3,844,448
- income tax payable 1,253,248
- VAT payable 2,286,819
- employer’s taxes and contributions payable 304,381
Payables to others 191,072
Total 15,119,500
Short-term operating liabilities increased by 28% over the previous year’s figure. The major share (61%)
of these liabilities includes trade payables, which relate to current trade payables for motorway operation
and maintenance. The majority (97%) of trade payables is not overdue.
Payables to employees include payables for wages, salaries, continued pay and refund of work-related
expenses for December 2007 paid out in January 2008.
88 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Short-term accrued costs and deferred revenue
in EUR 31 Dec 2007
(without cents)
Short-term accrued costs 420,519
Short-term deferred revenue 8,530,451
Total 8,950,970
Short-term accrued costs or expenses comprise:
• accrued costs of termination pays for business-related reasons in the amount of EUR 317,510,
• accrued costs of 2007 incentive bonuses for members of the Management Board in the amount of EUR
64,350, and
• accrued costs of audit of the 2007 financial statements in the amount of EUR 37,139, and of the actuarial
calculation of provisions for termination benefits and jubilee benefits in the amount of EUR 1,520.
Short-term deferred revenue comprises:
• revenue from prepaid tolls (DARS tags, ETC tags) that were charged and paid, but not used in 2007,
in the amount of EUR 8,529,232. Revenue will be deferred for as long as the users of services use the
tags.
• other short-term deferred revenue in the amount of EUR 1,219.
89 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Notes to the balance sheet of state-owned assets and liabilities under management of the
Company
Balance sheet of state-owned assets and liabilities under management as at 31 December 2007
in EUR 31 Dec 2007 31 Dec 2006
(without cents)
ASSETS 5,051,606,975 4,606,073,222
A. LONG-TERM ASSETS 5,018,532,233 4,552,626,618
II. Property, plant and equipment 5,018,532,233 4,552,626,618
1. Land and buildings 3,818,894,190 3,798,025,055
a) Land 742,669 742,669
b) Buildings 3,818,151,521 3,797,282,386
3. Other plant and equipment 1,517,612 2,640,648
4. Property, plant and equipment being acquired 1,198,120,431 751,960,915
a) Property, plant and equipment in the course of construction 1,198,120,431 751,960,915
B. CURRENT ASSETS 33,074,742 38,257,219
III. Short-term investments 6,300,000 0
1. Short-term investments, excluding loans 6,300,000 0
c) Other short-term investments 6,300,000 0
IV. Short-term operating receivables 26,653,913 37,500,235
2. Short-term trade receivables 971,886 499,425
3. Short-term operating receivables due from others 25,682,027 37,000,810
V. Cash 120,829 756,984
C. SHORT-TERM DEFERRED COSTS AND ACCRUED REVENUE 0 96
D. RECEIVABLES FROM THE USE OF STATE-OWNED UNDER MANAGEMENT
TO FUND COMPANY-OWNED ASSETS 0 15,189,288
OFF BALANCE SHEET ITEMS 376,311,313 350,903,632
90 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

in EUR 31 Dec 2007 31 Dec 2006
(without cents)
LIABILITIES 5,051,606,975 4,606,073,222
B. PROVISIONS AND LONG-TERM ACCRUED COSTS AND DEFERRED REVENUE 97,141 471,164
2. Other provisions 97,141 471,164
C. LONG-TERM LIABILITIES 4,847,996,920 4,351,201,166
I. Long-term financial liabilities 2,198,663,420 1,714,476,809
2. Long-term financial liabilities to banks 2,038,297,872 1,554,111,261
3. Long-term financial liabilities from bonds 160,365,548 160,365,548
II. Long-term operating liabilities 2,649,333,500 2,636,724,357
6. Long-term liabilities for state-owned assets under management 2,626,780,055 2,614,951,901
7. Long-term liabilities for municipality-owned assets under management 20,748,712 19,993,272
8. Long-term liabilities for other assets under management 1,804,732 1,779,184
D. SHORT-TERM LIABILITIES 200,539,670 229,317,564
II. Short-term financial liabilities 77,216,776 70,537,374
2. Short-term financial liabilities to banks 77,216,776 70,537,374
4. Other short-term financial liabilities 0 0
III. Short-term operating liabilities 123,322,894 158,780,190
2. Short-term trade liabilities 123,322,894 158,780,106
5. Other short-term operating liabilities 0 83
E. SHORT-TERM ACCRUED COSTS AND DEFERRED REVENUE 958 6,969
F. LIABILITIES FOR THE USE OF COMPANY-OWNED ASSETS TO FUND
STATE-OWNED ASSETS UNDER MANAGEMENT 2,972,287 25,076,359
OFF BALANCE SHEET ITEMS 376,311,313 350,903,632
91 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Property, plant and equipment and intangible assets under management
Schedule of balances and changes in state-owned property, plant and equipment and intangible assets
under management
in EUR Land Motorways Buildings PPE operated Motorways under Other motorway PPE permanently Total
(without cents) (surface structure, by others constructione quipment out of use
substructure,
facilities)
Cost
Balance at 31 December 2006 742,669 4,145,078,090 60,241,495 508,913,534 751,960,915 2,497,537 1,129,742 5,470,563,982
Transfer of assets required for the performance of
activity under the Concession Agreement from the
register of state-owned assets under management to
the register of company-owned assets
-217,184 -52,021 -269,205
Additions 555,936,902 53,490 555,990,392
Capitalisation and transfer between the items of assets 49,856,202 2,285,157 37,444,425 -88,471,313 -1,114,471 0,00
Transfer between the cost and the accumulated
depreciation / amortisation
Transfer to other operators
Disposal in 2007 (disposal, writeoff, ...)
1,224,933 -21,306,073 -20,081,140
Balance at 31 December 2007 742,669 4,196,159,225 62,309,468 546,357,959 1,198,120,431 1,384,535 1,129,742 6,006,204,029
Accumulated depreciation / amortisation
Balance at 31 December 2006 901,593,700 15,357,033 986,631 917,937,364
Transfer of assets required for the performance of
activity under the Concession Agreement from the
register of state-owned assets under management to
the register of company-owned assets
-58,368 -58,368
Depreciation / amortisation in 2007 87,898,367 2,141,225 10,034 90,049,626
Major repair -20,237,196 -19,630 -20,256,826
Transfer between the items of assets
Disposal in 2007 (disposal, writeoff, ...)
Balance at 31 December 2007 969,254,871 17,420,260 996,665 987,671,796
Carrying amount
Balance at 31 December 2006 742,669 3,243,484,390 44,884,462 508,913,534 751,960,915 2,497,537 143,111 4,552,626,618
Balance at 31 December 2007 742,669 3,226,904,354 44,889,208 546,357,959 1,198,120,431 1,384,535 133,077 5,018,532,233
Note: Movement in property, plant and equipment and intangible state-owned assets under management is
discussed in detail in note 2.5 Analysis of operations (Implementation of construction and reconstruction
of motorway sections).
92 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT 93 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Short-term investments
in EUR 31 Dec 2007 31 Dec 2006
(without cents)
Short-term investments 0
- other short-term investments 6,300,000 0
Total 6,300,000 0
Other short-term investments comprise short-term deposits with banks in the amount of EUR 6,300,000,
with average maturity of 5 days and an average weighted interest rate of 4.15%.
Short-term operating receivables
in EUR 31 Dec 2007 31 Dec 2006
(without cents)
Short-term trade receivables 971,886 499,425
Short-term operating receivables due from others 25,682,027 37,000,810
- interest receivable 44,369 35,672
- European funds receivable 1,427,255 0
- input VAT receivable 20,496,282 36,964,987
- other receivables 3,714,121 151
Total 26,653,913 37,500,235
Breakdown of short-term trade receivables by maturity:
in EUR not yet due overdue overdue in Total
(without cents) up to excess of
60 days 60 days
Short-term trade receivables 217,211 545,735 208,940 971,886
Cash
in EUR 31 Dec 2007 31 Dec 2006
(without cents)
Cash in bank accounts, except foreign currency 117,984 92,062
Foreign currency in bank accounts 2,845 664,922
Total 120,829 756,984
Cash earmarked for motorway construction and reconstruction is kept in a separate transaction
account.
94 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Off balance sheet items
Off balance sheet items in the sub-balance sheet of assets under management comprise:
• contingent cash or receivables from encashment of performance guarantees or warranties or other
securities received from contractors, which amounted to EUR 297,695,819 as at 31 December 2007;
• contingent liabilities arising from the claims relating to motorway construction and set up on the basis
of the company’s lawyer’s letter in the amount of EUR 77,793,846; and
• contingent receivables or liabilities arising from the hedge of interest rate risks associated with
borrowings for motorway construction and reconstruction in the amount of EUR 821,648.
In 2007, three deals were concluded with UniCredit Banka Slovenija d.d. to provide hedging of interest
rate risk on borrowings for motorway construction and reconstruction. In accordance with the policy
of active risk management in the financial area, the Company decided to reduce exposure to interest
rate movements in the market. As at 31 December 2007, the share of exposure to floating interest rate
represented 53% of the value of the debt portfolio, the share of exposure to fixed interest rate represented
45% of the debt portfolio, and the remaining 2% referred to an interest-free borrowing.
a) Hedging of interest rate risk — EUR 30 million
A deal was concluded in 2007 for hedging interest rate risk in the amount of EUR 30,000,000 with a
3-year maturity. The deal was concluded to partly hedge the two borrowings from Banka Koper and
UniCredit Banka Slovenija. The borrowings were hedged for a period of 3 years with a fixed interest rate
linked to the CHF currency and the option of conversion to CHF upon maturity of the deal.
b) Hedging of interest rate risk — EUR 40 million
A deal was concluded in 2007 for hedging interest rate risk in the amount of EUR 40,000,000 with a
3-year maturity. The deal was concluded to partly hedge the borrowing from UniCredit Banka Slovenija.
The borrowing was hedged for a period of 3 years with a fixed interest rate and the option of extension
by a further 7 years.
c) Hedging of interest rate risk — EUR 50 million
A deal was concluded in 2007 for hedging interest rate risk in the amount of EUR 50,000,000 with a 3-
year maturity. The deal was concluded to partly hedge the borrowing from Nova Ljubljanska banka. The
borrowing was hedged for a period of 2 years with a fixed interest rate and the option of extension by a
further 3 years.
The applied interest rates and interest calculation methods are contractually defined and considered
confidential.
Long-term accrued costs and deferred revenue
Long-term accrued costs and deferred revenue comprise liabilities arising from the sale of ETC tags up to
31 December 2003. These liabilities were set up in an amount co-financed by the users of ETC tags up to
the full cost of the ETC tags, and referred to the liability to return purchase money in case of the possible
return of ETC tags. Depreciation accumulated at 14.29% per annum. In previous periods, depreciation
represented a source of funds for the purchase of new ETC tags and was recorded under liabilities arising
from a part of tolls intended for investments in property, plant and equipment. Since 2004, depreciation
represents a source of funds for motorway construction. As at 31 December 2007, liabilities amounted to
EUR 97,141 and decreased by 79% over the previous year’s figure.
95 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Long-term financial liabilities under bank borrowings for acquisition of property, plant and equipment
under management
In accordance with the Motorway Company in the Republic of Slovenia Act (ZDARS) and the Agreement
on the Performance of Contracts, the Company borrows funds in its own name and for the account of the
State for the purpose of financing motorway construction and reconstruction.
The applied interest rates and interest calculation methods are contractually defined and considered
confidential.
Long-term financial liabilities relate in total to motorway construction and reconstruction.
in EUR 31 Dec 2007 in % 31 Dec 2006 Index
(without cents) 2007/2006
Long-term borrowings from domestic banks 839,075,672 41 606,167,709 138
Long-term borrowings from foreign banks 1,160,207,326 57 913,709,311 127
Long-term borrowings from foreign entities 39,014,874 2 34,234,241 114
Total 2,038,297,872 100 1,554,111,261 131
The borrowings are secured by the State’s guarantee issued under relevant contracts concluded between
the State and lenders.
Long-term portion of the principal amount of bank borrowings by lender:
Lender
31 Dec 2007 in EUR
(without cents)
Consortium of Slovene Banks 395,344,664
Hypo Alpe Adria Bank 60,866,378
Bank Austria Creditanstalt 107,531,297
Banka Koper 30,333,333
NLB I 245,000,000
European Bank for Reconstruction and Development 1 1,801,038
European Investment Bank 904,347,867
Kreditanstalt für Wiederaufbau 29,058,421
Depfa Bank 225,000,000
Avtovie Venete S.p.A. 39,014,874
Total 2,038,297,872
1 The EBRD loan was extended in USD and translated into the national currency euro at the middle exchange rate of the Bank
of Slovenia effective at the balance sheet date (EUR 1 = USD 1.4692).
96 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

a) Borrowings from the Consortium of Slovene Banks
The Company made seven borrowings from domestic banks in the period from 1996 to 2004.
Long-term liabilities to the Bank Consortium and the period of repayment:
Class of borrowings Period of repayment in EUR
(without cents)
I from 2002 to 2016 116,142,254
II from 2004 to 2019 42,949,394
III from 2007 to 2019 68,692,279
IV from 2008 to 2020 34,097,213
V from 2007 to 2020 39,105,562
VI from 2009 to 2021 32,960,051
VII from 2012 to 2024 61,397,911
Total 395,344,664
b) Borrowings from Hypo Alpe Adria Bank
In the years 2003, 2004 and 2005, three borrowings were made from Hypo Alpe Adria Bank.
Long-term liabilities to Hypo Alpe Adria Bank and the period of repayment:
Class of borrowings Period of repayment in EUR
(without cents)
I from 2011 to 2023 24,991,257
II from 2012 to 2024 15,010,491
III from 2014 to 2023 20,864,630
Total 60,866,378
c) Borrowings from UniCredit Banka Slovenija
In 2005 and 2006, two borrowings were made from UniCredit Banka Slovenija. They were utilised in
their total amount in these two years. The borrowing made in 2006 was used for refinancing or advance
repayment of borrowings from Kreditanstalt für Wiederaufbau.
Long-term liabilities to UniCredit Banka Slovenija and the period of repayment:
Class of borrowings Period of repayment in EUR
(without cents)
I from 2011 to 2023 20,864,630
II from 2007 to 2021 86,666,667
Total 107,531,297
97 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

d) Borrowing from Banka Koper
In 2006, a borrowing was made from Banka Koper for refinancing or advance repayment of borrowings
from Kreditanstalt für Wiederaufbau.
Long-term liabilities to Banka Koper and the period of repayment:
Class of borrowings Period of repayment in EUR
(without cents)
I from 2007 to 2021 30,333,333
Total 30,333,333
e) Borrowing from NLB
In 2007, a borrowing was made from NLB to finance motorway construction.
Long-term liabilities to NLB and the period of repayment:
Class of borrowings Period of repayment in EUR
(without cents)
I from 2012 to 2027 245,000,000
Total 245,000,000
f) Borrowing from the European Bank for Reconstruction and Development (EBRD)
The borrowing from the European Bank for Reconstruction and Development was repaid in 2007 in the
amount of USD 2,651,308. The final maturity of the borrowing is in 2009.
g) Borrowings from the European Investment Bank (EIB)
The borrowings from the European Investment Bank were repaid in 2007 in the amount of EUR 39,994,000
and liabilities from borrowings were increased due to new utilisations in the amount of EUR 219,000,000.
The final maturities of the borrowings are in the period from 2014 to 2029.
Long-term liabilities to the European Investment Bank and the period of repayment:
Class of borrowings Period of repayment In EUR
(without cents)
A, B, C from 2000 to 2014, 2015, 2016 42,181,200
II from 2003 to 2018 82,333,333
III from 2004 to 2019 122,500,000
IV from 2005 to 2019 117,333,333
V from 2007 to 2027 111,000,000
VI from 2012 to 2029 110,000,000
VII from 2014 to 2036 215,000,000
VII from 2015 to 2032 104,000,000
Total 904,347,866
98 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

h) Borrowings from Kreditanstalt für Wiederaufbau (KfW)
The borrowing from Kreditanstalt für Wiederaufbau (KfW I) was repaid in 2007 in the amount of EUR
5,283,350.
Long-term liabilities to Kreditanstalt für Wiederaufbau and the period of repayment:
Class of borrowings Period of repayment In EUR
(without cents)
I from 2005 to 2014 29,058,421
Total 29,058,421
i) Borrowings from Depfa Bank (DEPFA)
In 2007, the borrowing from DEPFA II was utilised in the amount of EUR 78,000,000.
Long-term liabilities to Depfa Bank and the period of repayment:
Class of borrowings Period of repayment in EUR
(without cents)
I from 2014 to 2024 75,000,000
II from 2013 dto 2021 150,000,000
Total 225,000,000
j) Borrowing from Autovie Venete (AVV)
The Company made the borrowing from Autovie Venete on the basis of a Memorandum of Understanding
between the Government of the Republic of Slovenia and the Government of the Italian Republic on the
Construction of Motorway Structures required for connection of the Slovenian and Italian motorway
networks.
In 2007, liabilities from the borrowing from Autovie Venete increased due to new utilisations in the amount
of EUR 4,780,633 EUR. The first repayment of the principal amount is due two years after the opening of
the Vipava — Razdrto motorway section.
99 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Long-term liabilities from bonds
a) DARS bonds of first issue (DRS1)
In 2004, the bonds of first issue, designated as DRS1, were issued in the aggregate nominal amount of
EUR 56,042,397. The principal is due in its total amount in 2024. The bonds are traded on the free market
of the Ljubljana Stock Exchange.
b) DARS bonds of second issue (DRS2)
In 2005, the bonds of second issue, designated as DRS2, were issued in the aggregate nominal amount of
EUR 61,759,306. The principal is due in its total amount in 2025. The bonds are traded on the free market
of the Ljubljana Stock Exchange.
c) DARS bonds of third issue (DRS3)
In 2005, the bonds of third issue, designated as DRS3, were issued in the aggregate nominal amount of
EUR 42,563,846. The principal is due in its total amount in 2020. The bonds are traded on the free market
of the Ljubljana Stock Exchange.
In accordance with the Motorway Company in the Republic of Slovenia Act (ZDARS) and the Agreement
on the Performance of Contracts, the Company borrows funds in its own name and for the account of the
State for the purpose of financing motorway construction and reconstruction. The liabilities arising from
the issued bonds are secured by a State guarantee.
Long-term operating liabilities for state-owned assets under management
in EUR 31 Dec 2007 31 Dec 2006
(without cents)
1. Liabilities from motorways transferred to assets under management 777,928,689 867,105,018
2. Liabilities from collected earmarked funds for motorway construction 1,301,687,434 1,288,647,119
3. Liabilities from tolls collected prior to 1 January 2004 and earmarked for
motorway construction, repayment of principal and interest on borrowings
4. Liabilities from interest received on deposits and sight funds in
transaction accounts
5. Liabilities from insurance benefits for damages on motorways prior to
1 January 2003
255,444,917 255,444,917
4,075,289 3,916,270
820,316 820,316
6. Liabilities from funds received under the Concession Agreement 232,889,746 162,891,127
7. Liabilities from paid-in surplus upon the issue of bonds 4,372,809 4,372,809
8. Liabilities from assets under management acquired upon the merger with PVAC 3,749,779 3,908,594
9. Liabilities from non-repayable funds granted by the Cohesion Fund 41,262,612 27,178,252
10. Liabilities from the EU funds for the TEMPO international project 1,839,950 667,479
11. Liabilities from the funds of the European Regional Development Fund 431,258
12. Liabilities from the EU financial support for TEN-T 2,277,256
Total 2,626,780,055 2,614,951,901
100 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Long-term liabilities from motorways transferred to assets under management are stated at revalued initial
cost of motorways transferred to the Company and placed under its management upon incorporation,
less revalued accumulated depreciation of capitalised motorways plus the effect of revaluation by the use
of the cost of living index (in the years from 1994 to 2001). The changes in 2007 include:
• the decrease by depreciation expense for assets under management in the amount of EUR 90,049,627
EUR,
• the effect of revaluation of foreign long-term borrowings, foreign currency balances in transaction
accounts, and foreign currency denominated investments in the amount of 499,277,
• the reversal of provisions for sold ETC tags in the amount of EUR 374,023,
• the post-conversion reconciliation in the amount of EUR 2, and
• the transfer of the Hrušica residential block, whose ownership was transferred, under contract, by the
Republic of Slovenia to the Public Company for Road Maintenance in 1991, from the register of stateowned
assets to the register of company-owned assets, in the carrying amount of EUR 158.816.
Long-term liabilities from collected earmarked funds for motorway construction increased in 2007 by
EUR 13,040,315.
Long-term liabilities from funds received under the Concession Agreement amounted in 2007 to
EUR 122,637,200, less payment of interest on borrowings and issued bonds in the amount of EUR
52,638,581.
In 2007, the Company received long-term funds for motorway construction from the EU Cohesion Fund in
the amount of EUR 14,084,360, funds from the EU for the TEMPO international project in the amount of
EUR 1,172,471, funds from the European Regional Development Fund in the amount of EUR 431,258, and
financial support from the EU for the TEN-T project in the amount of EUR 2,277,256.
Long-term operating liabilities from municipality-owned assets under management
Long-term operating liabilities from municipality-owned assets under management are recorded at the
amount co-financed by local communities and public utilities for motorway construction and amounted to
EUR 20,748,712 as at 31 December 2007.
Long-term operating liabilities from other assets under management
Long-term operating liabilities from other assets under management increased in 2007 due to the sale of
land acquired for motorway construction but not entirely used for its construction or not entirely needed
for operation and maintenance of motorways, invoiced easement on land, rentals, waste material, and
other items.
101 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Short-term financial liabilities from borrowings for the acquisition of property, plant and equipment
under management
Short-term financial liabilities from borrowings for the acquisition of property, plant and equipment under
management are recorded in the amount equal to a portion of principal of long-term borrowings due for
repayment in 2008.
Lender 31 Dec 2007 in EUR 31 Dec 2006 in EUR
(without cents) (without cents)
European Bank for Reconstruction 1,801,038 2,012,837
and Development 2
European Investment Bank I 5,994,000 5,994,000
European Investment Bank II 8,666,667 8,666,667
European Investment Bank III 11,666,667 11,666,667
European Investment Bank IV 10,666,667 10,666,667
European Investment Bank V 6,000,000 3,000,000
Kreditanstalt für Wiederaufbau I 5,283,350 5,283,350
Bank Consortium I 1,206,387 1,209,745
Bank Consortium II 448,169 449,700
Bank Consortium III 700,942 700,942
Bank Consortium IV 344,416 0
Bank Consortium V 397,011 198,505
Unicredit Banka Slovenija II 6,666,667 6,666,667
Banka Koper 2,333,333 2,333,333
Total principal 62,175,314 58,849,080
Short-term interest payable as at 31 December 2007 included interest payable on bank borrowings and
bonds issued for the acquisition of property, plant and equipment.
in EUR 31 Dec 2007 31 Dec 2006
(without cents)
Interest on long-term borrowings 11,629,810 8,272,267
Interest on bonds 3,411,653 3,416,028
Total 15,041,463 11,688,295
2 As at 31 December 2007, short-term financial liabilities for borrowings from EBRD amounted to USD 2,651,308. The
borrowing was denominated in USD and translated into the national currency euro at the middle exchange rate of the Bank
of Slovenia in effect at the balance sheet date (EUR 1 = USD 1.4692).
102 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Short-term trade liabilities
in EUR 31 Dec 2007 31 Dec 2006
(without cents)
Trade payables 121,244,612 156,527,920
Compensation payable 1,891,968 2,105,823
Other payables 46,433 6,482
Payables for goods and services not yet invoiced 139,881 139,881
Total 123,322,894 158,780,106
Short-term trade liabilities include payables relating to motorway construction works performed and
charged by domestic and foreign suppliers, compensation payable for land acquired, and other payables.
97% of short-term trade liabilities were not yet due for payment.
Short-term trade liabilities also include payables for funds (collateral) retained as a performance guarantee
in case the contractors fail to present relevant bank guarantees or other financial securities. The funds
retained under the contracts concluded with contractors belong to contractors and are paid to them upon
the fulfilment of contractual obligations and the submission of relevant documents by contractors.
As at 31 December 2007, payables for retained funds amounted to EUR 2,611,626, or 2.1 percent of the
total trade liabilities.
Trade payables as at 31 December 2007:
in EUR 31 Dec 2007 in %
(without cents)
SCT d.d. 49,101,094 40
PRIMORJE d.d. 16,333,068 13
CESTNO PODJEJTE MARIBOR d.d. 8,860,741 7
VEGRAD d.d. 6,100,022 5
CM CELJE d.d. 6,049,330 5
VIDONI S.P.A., Branch in PODNANOS 4,906,970 4
OBEROSLER CAV. PIETRO S.P.A. 4,906,970 4
SGP POMGRAD d.d. 2,956,109 3
STRABAG AG 2,710,887 2
CESTNO PODJETJE LJUBLJANA d.d. 2,580,265 2
Other suppliers 18,817,438 15
Total 123,322,894 100
103 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Liabilities from the use of company-owned assets to finance state-owned assets under
management
In the balance sheet of state-owned assets under management, the State’s liabilities to the Company
arising from the use of company-owned assets to finance state-owned assets are recorded in the amount
of EUR 2,972,287. In the balance sheet of company-owned assets, the Company’s receivables from the
State are recorded in the same amount.
The State’s liabilities include:
• 2008 concession tax, transferred in advance, payable in the amount of EUR 3,253,866,
• 2007 remuneration payable under the Agreement on the Performance of Contracts in the amount of
EUR 1,020,465 (this liability was settled in the beginning of 2008).
104 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Additional disclosures in the income statement of DARS d.d.
Net sales
in EUR 2007 2006 in % Index
(without cents) 2007/2006
Revenue from tolls 174,719,492 151,951,470 84 115
Revenue from rentals 4,380,392 3,988,316 2 110
Revenue from road closure and
overweight load transports
1,406,321 1,229,410 1 114
Revenue from easements 162,073 67,069 0 242
Revenue under agency agreement 26,398,091 17,882,299 12 148
Other sales revenue 1,813,528 202,069 1 897
Total 208,879,897 175,320,633 100 119
Revenue from tolls amounted to EUR 174,719,492 or 84% of the total sales in 2007. They were up 15%
over the previous year’s figure.
Revenue from tolls was followed by revenue under the Agreement on the Performance of Contracts,
which accounted for 12% of net sales and were up 48% compared to 2006. To implement an order
under the Agreement on the Performance of Contracts, the Company is entitled to remuneration from
the State in an amount equal to 5.49% of the value of motorway construction and reconstruction works
defined in the current Annual Motorway Development and Reconstruction Plan (AMDRP). Monthly
advance payments are effected on the basis of the value of works under the AMDRP. The final statement
of account is prepared on the basis of realised works as stated in the annual report on implementation of
the AMDRP presented to the National Assembly. The remuneration stipulated in the Agreement on the
Performance of Contracts increases or decreases in line with the contractual provisions on cost-related
incentives and cost-related penalties. In line with the contractual provisions, the relevant sales revenue
is charged to the Ministry of Transport and the payment is effected by transferring the funds from the
transaction account for motorway construction to the transaction account of the Company.
Revenue from rentals (for the lease of motorway service areas and base stations) is generated by the
lease of land alongside motorways for the provision of catering services and the erection of petrol service
stations. Revenue from rentals increased by 10% compared to 2006. The prices are set subject to public
tenders.
Sales also include revenue from road closures and overweight load transports in the amount of EUR
1,406,321, and revenue from easements in the amount of EUR162.073.
Other sales in the amount of EUR 1,813,528 include revenue from the sale of ETC tags, revenue from
telecommunications, revenue from towing, snow ploughing and clearing road accidents, revenue from
rentals for holiday facilities and apartments, revenue from the sale of waste material, and other sales
revenue.
Net sales were earned entirely in the domestic market.
105 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Other operating revenue
Other operating revenue in the amount of EUR 2,244,314 comprises revenue from received insurance
benefits for damages on motorways and motorway facilities, revenue from reversal of provisions, and
revenue from disposal of property, plant and equipment.
Costs and operating expenses
Costs of operation and maintenance of motorways:
in EUR 2007 in %
(without cents)
Costs of materials 9,487,267 5
Costs of services 151,901,201 76
Labour costs 27,557,899 14
Depreciation and amortisation expense 8,002,348 4
Operating expenses from revaluation of
intangible assets and property, plant and equipment
Operating expenses from revaluation of
current operating assets
12,752 0
59,160 0
Other operating expenses 1,834,670 1
Total 198,855,297 100
Breakdown of costs by functional group:
in EUR 2007
(without cents)
Costs of motorway maintenance and supervisor engineer 117,294,640
Selling costs 51,407,891
General and administrative costs 30,152,766
Total 198,855,297
106 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Costs of materials and services
in EUR 2007 in %
(without cents)
Costs of materials: 9,487,267 100
- Costs of materials 1,934,744 20
- Costs of energy 2,686,046 28
- Costs of spare parts for property, plant and equipment 239,982 3
- Low-value assets writeoff 4,059,611 43
- Other costs of materials 566,884 6
Costs of services: 151,901,201 100
- Costs of supervisor engineer 17,304,902 11
- Costs of maintenance of property, plant and equipment 3,350,979 2
- Rentals 831,047 1
- Costs of payment transactions 2,498,681 2
- Costs of charges under the Concession Agreement 122,637,200 81
- Other costs of services 5,278,392 3
Total 161,388,468
The costs of materials amounted to 5% of the total operating expenses and increased by 27% compared
to 2006. The major items in the costs of materials are the costs of salt (9%) and the costs of electricity
(15%).
The costs of services amounted to 76% of the total operating expenses. The major item in the costs of
services is the costs of charges under the Concession Agreement (81%) paid to the State on the basis
of the concession granted to the Company. In exchange for the exclusive right to manage and maintain
motorways in the Republic of Slovenia, the Company pays to the State a concession tax on the basis of
monthly statements of account. At year end, a final statement of account is prepared on the basis of the
annual statement of account of concession taxes. The costs of taxes under the Concession Agreement
increased by 19% over the previous year’s figure. Other costs of services increased by 12% compared
to 2006.
The costs of supervisor engineers amounted to 11% of the total costs of services and included the costs
of engineer services in the construction, reconstruction and maintenance of motorways.
107 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Labour costs
Labour costs amounted to 14% of the total operating expenses and increased by 5% compared to
2006.
Labour costs included the costs of supplementary pension insurance premiums in the amount of EUR
556.327.
As at 31 December 2007, the Company had 1,128 employees. The average staff count in 2007 was 1,066
(based on the number of working hours).
In 2007, wages and salaries were paid in line with the General Collective Agreement for the Industry
Sector, Implementation of the Incomes Policy Agreement for the Period 2002 — 2004 Act (Official
Gazette of the Republic of Slovenia, 59/02), and the Company’s Collective Agreement in effect as from
1 January 2007.
The average salary in the Company in 2007 (in EUR):
Average gross salary 2007
DARS d.d. 1,540
Republic of Slovenia 1,285
In 2007, the total gross remuneration of the members of the Management Board amounted to EUR
398,814 EUR. Disclosed below are the remunerations to the Management Board members in 2007:
Type of
remuneration
in EUR
(without cents)
Rajko SiroËiË Debeljak Stanislav Tomislav
Nemec
President of
MB until
25 Oct 2007
Acting Deputy
President of
MB until
31 Mar 2006
President of
MB since
26 Oct 2007
Doc. dr. Žan
Jan Oplotnik
Deputy
President
of MB
Abdon Peklaj Aleš Hojs Boštjan
Rigler
MB
member until
25 Oct 2007
MB
member
MB
member
since
26 Oct 2007
Gross management
salary
96,739 17,381 14,851 89,457 99,124 16,598
Vacation bonus 730 730 730
Incentive bonus for
2006
15,444 3,991 13,552 9,747
Fringe benefits 3,205 842 7,261 4,457 31
Refund of expenses 826 18 804 907 101
Supplementary
pension insurance
premium
575 713
Total 117,519 3,991 18,241 14,851 111,804 115,678 16,730
The gross emoluments of employees employed under employment contracts not subject to the Collective
Agreement amounted to EUR 912,988 in 2007.
108 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

The remunerations of members of the Supervisory Board in 2007:
in EUR
Gross emoluments
(without cents)
Slak Franc 13,363
VerliË Peter 8,669
Kamnar Helena 2,535
IvanušiË Zvonko 10,209
Vidic Tomaž 1,650
Ošo Simon 1,650
Sever Robert 2,750
Meško Vito 11,419
Ratajc Lojze 9,769
KodriË Darko 1,100
Likar Dimitrij 6,050
Total 69,164
The claims of employees under labour disputes contested by the Company are disclosed in the note to
long-term provisions.
Writedowns
in EUR 2007
(without cents)
Amortisation of intangible assets 222,602
Depreciation of property, plant and equipment 7,779,746
Operating expenses from revaluation of intangible assets and property,
plant and equipment
12,752
Operating expenses from revaluation of operating current assets 59,160
Total 8,074,260
If the annual depreciation/amortisation rates in effect until 1 January 2007 had been applied, the
depreciation/amortisation expense would have been higher by EUR 180,626 in 2007.
Operating expenses from revaluation of operating current assets include an allowance for trade
receivables.
109 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Other operating expenses
Other operating expenses include costs of long-term provisions in the amount of EUR 1,560,972 EUR. In
2007, the costs of long-term provisions comprised:
a) provisions for long-term accrued costs of contingent losses arising from claims in association with
motorway operation and maintenance in the amount of EUR 90,906 and claims by employees under
labour disputes in the amount of EUR 57,581;
b) provisions in the amount of EUR 293,746 for long-term accrued costs relating to employment as a
result of a transition to the new satellite toll system. The estimate of the number of redundancies due
to the change in the toll system is 300. A number of redundant employees will be requalified for other
jobs, particularly for toll control, in line with internal needs. In some cases, the purchase of insurance
period by some redundant employees will be possible. It is estimated that severance pay will have
to be paid to 100 employees. Accrued costs in 2007 included a quarter of the costs of anticipated
purchase of insurance period and severance pay in the amount of EUR 293,746;
c) provisions for termination benefits upon retirement and jubilee benefits in the amount of EUR
117,534;
d) provisions in the amount of EUR 32,497 for termination pays upon retirement to employees not
included in the pension scheme of collective supplementary pension insurance under the agreement
between trade unions and the Company;
e) long-term accrued costs and deferred revenue for settlement of contingent liabilities arising from
the return of purchase money upon a possible return of ETC tags in the amount of EUR 968,709 (the
buyers of ETC tags are entitled to return ETC tags within seven years from the date of purchase).
Financial revenue
Financial revenue from loans to others in the amount of EUR 1,367,283 includes revenue from short-term
surplus liquid funds deposited with banks as euro deposits and investments in securities, and revenue
from revaluation of investments as held for sale. Other financial revenue in the amount of EUR 14,646
comprises financial revenue from operating receivables including default interest revenue and foreign
exchange gains.
Financial expenses
Financial expenses in the amount of EUR 11,701 comprise foreign exchange losses and default interest
expenses.
Other revenue
Other revenue in the amount of EUR 85,167 EUR includes indemnities received under court judgements
and contract penalties.
Other expenses
Other expenses in the amount of EUR 17,471 include indemnities paid under court judgements.
110 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Income tax
Income tax is levied under the Corporate Income Tax Act (ZDDPO-2). The base for tax assessment is the
total profit increased by non-deductible expenses and reduced by tax relief under the law. The resulting
tax base is taxed at the rate of 23%.
No. in EUR 2007
(without cents)
1 Revenue 212,591,309
2 Expenses 198,884,469
3 Total profit (1-2) 13,706,840
4 Decrease in revenue 723,831
5 Increase in revenue 0
6 Decrease in expenses — non-deductible expenses 1,705,171
7 Increase in deductible expenses 118,019
8 Deductible revenue less deductible expenses (1-2-4+5+6-7) 14,570,161
9 Tax base (8) 14,570,161
10 Change in tax base due to a change in accounting policies 112,462
11 Increase in tax base by the amount of tax relief used 1,310
12 Tax relief for employment of disabled persons 234,185
13 Tax relief for supplementary pension insurance 556,327
14 Tax relief for grants 11,300
15 Taxable base (9-10+11-12-13-14) 13,657,197
16 Income tax at 23% 3,141,155
The net profit for the period is equal to the amount of total profit determined in the income statement,
reduced by income tax liability for the accounting period, and increased by deferred taxes. The net profit
for the period was 2.53-times higher than in the previous year.
in EUR 2007
(without cents)
Operating profit 12,268,915
Profit from financing 1,370,229
Profit form extraordinary activities 67,696
TOTAL PROFIT 13,706,840
Income tax 3,141,155
Deferred taxes -61,548
Net profit for the period 10,504,137
Net profit for the period restated by use of the cost of living index
in EUR (without cents) Growth in% Equity amount Effect of Decreased profit or
restatement loss for the period
Equity — restatement by the use of
the cost of living index
5.6% 44,659,625 2,500,939 8,003,198
111 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Performance ratios
31 Dec 2007 31 Dec 2006
1. FINANCING STATE RATIOS
Equity financing ratio in %
Equity
Liabilities
0,96 0,87
Long-term financing ratio in %
Equity + provisions + long-term liabilities
Liabilities
95,62 94,65
Short-term financing ratio in %
Short-term liabilities (including short-term accrued expenses and
deferred revenue) 4,38 5,35
Liabilities
2. INVESTMENT RATIOS
Fixed assets investment ratio in %
Fixed assets (at carrying amount)
Assets
98,24 98,36
Long-term investment ratio in %
Fixed assets + long-term investments + long-term operating
receivables 98,25 98,38
Assets
3. HORIZONTAL FINANCIAL STRUCTURE RATIOS
Quick ratio in %
Liquid assets + short-term receivables
Short-term liabilities
17,17 23,36
Current ratio in %
Current assets
Current liabilities
4. EFFICIENCY RATIOS
39,52 29,93
Operating efficiency ratio in %
Operating revenue
Operating expenses
Operating profit rate in %
Operating profit
Operating revenue
106,17 101,76
5,81 2,32
Net profit margin in %
Net profit
Revenue
4,94 2,30
5. PROFITABILITY RATIOS
Net return on equity
Net profit for the period
Average equity (without net profit for the period)
0,28 0,12
112 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Events after the Balance Sheet Date
• On 25 April 2008, the National Assembly of the Republic of Slovenia passed the Act Amending the
Public Roads Act. Pursuant to this Act, motorcycles, passenger and combined vehicles with a maximum
admissible weight of 3.5 tons or less will be required to have a vignette when driving on motorways
and expressways in Slovenia. The vignette system will be introduced with effect as of 1 July 2008.
Trucks will be subject to the existing toll system until the introduction of the satellite system. The cost
of an annual vignette shall be 55 EUR (the vignette will be valid in the calendar year of purchase and in
January of the following year). The cost of a semi-annual vignette shall be 35 EUR (it will be valid for
six successive months from the date of purchase). The cost of a vignette for motorcycles will be half the
cost of a vignette for passenger vehicles.
The vignette system will be introduced on all roads managed and maintained by the toll road manager
(DARS d.d.). Before the introduction of the vignette system, the toll road manager shall provide for an
adequate quantity of stickers — vignettes. The proper affixing of a vignette on a motor vehicle and its
validity will indicate that the respective road toll for the use of toll roads in a certain period of time has
been paid.
The toll payment and the proper use of vignettes will be controlled by the toll road manager (DARS d.d.)
and, in case of any violations, its authorised officials (road supervisors) will conduct a quick violations
procedure against violators and decide accordingly. In addition to road supervisors, the vignettes
will also be controlled by the Police, the Transport Inspectorate of the Republic of Slovenia, and the
Customs Administration of the Republic of Slovenia. In addition to their own authorisations, they will
also be granted authorisation for road supervision. All the above-mentioned bodies are also violation
bodies, i.e. they will be entitled to impose a fine at the scene of a violation.
An analysis of the consequences of the introduction of the vignette system and a financial analysis
of the change in the toll system are currently being prepared and have not yet been discussed by the
Company’s bodies.
• On 22 January 2008, the Government of the Republic of Slovenia appointed Uroš RožiË to the
Supervisory Board of the Company. In April 2008, Dimitrij Likar was relieved of his office by the Workers
Council and, in his place, Matej JelušiË was appointed member of the Supervisory Board. Vito Meško
and Darko KodriË were reappointed by the Workers Council to the Supervisory Board.
• On 31 March 2008, a loan contract in the amount of EUR 145 million was concluded with Nova
Ljubljanska banka d.d..
• In May 2008, the National Assembly of the Republic of Slovenia approved the 2008 Annual Motorway
Development and Reconstruction Plan (AMDRP) amounting to a total EUR 832 million, and passed the
Act on the Consent and Guarantee of the Republic of Slovenia to DARS, d.d. in the amount of EUR 544
million.
113 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

Audit of the 2007 Annual Report under the Contract
The contractually stipulated amount of audit services relating to the 2007 Annual Report of the Company
came up to EUR 44,567 inclusive of VAT. The audit was carried out by the audit company KPMG Slovenija,
d.o.o., Ljubljana. This audit company also carried out the audit of the RANKERS project in the amount of
EUR 1,200 inclusive of VAT.
Statement of Management Responsibility
The Management Board of DARS d.d. approves the financial statements of DARS d.d. and the notes
thereto for the year ended 31 December 2007.
The Management Board acknowledges that the financial statements have been prepared in conformity
with accepted accounting policies, that the accounting estimates have been prepared under the principle
of conservatism and the principle of due care, and that the annual report gives a true and fair view of
the financial position of the Company and the results of its operations for the year ended 31 December
2007.
Management Board of DARS d.d.
Celje, 9. 6. 2008
114 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

115 ANNUAL REPORT DARS d.d. 2007 FINANCIAL REPORT

116 ANNUAL REPORT DARS d.d. 2007 AUDITOR’S REPORT

117 ANNUAL REPORT DARS d.d. 2007 AUDITOR’S REPORT
AUDITOR’S
REPORT

118 ANNUAL REPORT DARS d.d. 2007 AUDITOR’S REPORT

119 LETNO PORO»ILO DARS d.d. 2007 REVIZORJEVO PORO»ILO

120 ANNUAL REPORT DARS d.d. 2007 AUDITOR’S REPORT

121 ANNUAL REPORT DARS d.d. 2007 AUDITOR’S REPORT
STATEMENT OF
CORPORATE
GOVERNANCE

Declaration of Conformity of the Company DARS d.d. to the “Management Code
for Publicly Traded Companies”
The Motorway Company of the Republic of Slovenia, PLC, Celje (hereinafter: Company) herewith informs
the shareholders and public that it conducts business in compliance with the valid regulations and legal
acts which are in force in the Company and which to a large extent also regulate the issues regulated by
the “Management code for publicly traded companies”.
The Company hereby states that it complies with the provisions of the “Management code for publicly
traded companies”, which was formed and adopted by common consent by the Ljubljana Stock Exchange
PLC, Ljubljana, the Association of Supervisory Board Members and the association Manager on 18 March
2004, and modified and amended on 14 December 2005 and 5 February 2007 (hereinafter: Code),
published on the web pages of the Ljubljana Stock Exchange d.d., at the address http://www.ljse.si/, with
the following derogations or particularities:
The Company does not comply with the provision of point 1.1.1. of the Code, which specifies that the
basic objectives of a company should be stated in the company Statute. The tasks and objectives of the
Company are defined in the Slovenian Motorways Company Act (Official Gazette of the RS, no. 57/93 with
amendments, hereinafter ZDARS).
The Company complies with the Code provision 1.3.1., which specifies that shareholders exercise their
rights at the general meeting and that each shareholder is entitled to participate at the general meeting.
The sole shareholder of the Company is the Republic of Slovenia, and the general meeting is performed at
a session of the Government of the RS, which operates in compliance with the Government of the Republic
of Slovenia Act (Official Gazette of the RS, no. 4/93 with amendments, hereinafter ZVRS) and the Rules
of procedure of the Government of the Republic of Slovenia (Official Gazette of the RS, no. 43/2001 with
amendments, hereinafter Rules of procedure of the Government of the Republic of Slovenia).
The Company indirectly complies with the Code provision 1.3.5., which specifies that a general meeting
is convened by the management, which also publishes the agenda, because the Company submits
the proposed agenda to the competent Ministry, which submits the proposal for consideration to the
Government of the Republic of Slovenia, in compliance with the ZVRS and the Rules of procedure of the
Government of the Republic of Slovenia.
Code provision 1.3.17. specifies that the majority of members of the management and supervisory bodies
should attend the general meeting. The Company’s general meeting is a session of the Government, and
the Government of the Republic of Slovenia may, pursuant to the ZVRS and the Rules of procedure of the
Government of the Republic of Slovenia, invite the management to attend the session of the Government,
because it is not usual for uninvited persons to attend sessions of the Government.
The Company partly complies with the provisions of points 2.3.2. and 2.3.3. of the Code, which refer to the
manner of determining the amount of payments, reimbursements and other benefits for the members of
management, and the Company is of the opinion that its own regulation is sufficient, where the issues of
payment to members of the management are regulated by the provisions of individual contracts between
the Company and individual members of the management. The contract of employment specifies the
maximum amount of the variable part of payment in compliance with the criteria in the contract, but the
Company does not have a special internal regulation which specifies criteria on the manner of determining
the amount of payments, reimbursements and other benefits for the members of the management, but
it applies as appropriate the recommendations of the Government of the RS regarding remuneration for
managers of state-owned companies, and it also obtained the prior consent of the competent Minister
with regard to the amount of salary for individual managers.
122 ANNUAL REPORT DARS d.d. 2007 STATEMENT OF CORPORATE GOVERNANCE

The Company does not implement the Code provisions 2.3.4., 2.3.5., 2.3.6. and 2.3.7., which refer to share
options and comparable remuneration systems as variable parts of receipts, because it does not have a
system and practice of remunerating by share options.
The Company does not comply with the provision of point 2.4.7. of the Code, which specifies that a member
of management should accept membership in the supervisory board only after informing the President
of the supervisory board in the company in which the member performs the function of a member of
management, because no built-in obligation exists to do that.
The company does not comply with provision 3.1.1. of the Code (which specifies that the tasks of the
supervisory board are to appoint and supervise the management) in the part referring to appointing the
management, because the Company management is appointed by the Government of the Republic of
Slovenia in compliance with the provisions of the ZDARS.
The Company does not comply with the provision of point 3.1.9. of the Code, which specifies that the
supervisory board should use information technology to send out materials and convene sessions,
because the Company’s supervisory board sends out materials and convenes sessions by means of
registered post with a return receipt.
The Company complies with the provision of point 3.1.10. of the Code, because the Supervisory Board
assesses its own work once a year. Assessment of the work of the Supervisory Board of DARS d.d.
includes an assessment of the composition of the supervisory board, an assessment of the operations
of the supervisory board as a group, and an assessment of the qualifications and efficiency of individual
members, an assessment of the operations of individual commissions of the supervisory board, an
assessment of work organisation and measures to improve efficiency. Members of the Supervisory Board
regularly attend training and meetings, and the President of the Supervisory Board also encourages them
to perform their functions efficiently and actively.
The Company complies with the provision of point 3.1.11. of the Code, because the Supervisory Board
prepares a written report to the general meeting next to the annual report every year.
The Company complies with provision 3.2.1. of the Code, which specifies that the supervisory board is
authorised to appoint and recall members of the management, whereby it strives for continuity, except
in the part referring to appointing and recalling members of the management, for which is, pursuant to
the ZDARS, competent the Government of the Republic of Slovenia and not the supervisory board. But
the supervisory board proposes to the Government of the Republic of Slovenia the appointment and
dismissal of members of the management.
The Company does not in its entirety comply with the provision of point 3.3.6. of the Code, which specifies
that the commission, upon collecting proposals for supervisory board candidates, should take into
consideration the pre-set criteria and that these criteria should be specified by the company statute. The
statute specifies that members of the supervisory board should fulfil the terms and conditions specified
by law and, additionally, that they are specialists in the field of economics, engineering, commercial law
or finance, or have many years of experience in senior positions in the economy, but it does not specify
more detailed criteria, as set out in point 3.3.6. of the Code.
The Company complies with provision of point 3.4.2. of the Code, which specifies that the amount and
manner of determining amounts of individual payments for supervisory board members are specified by
a decision of the general meeting or by statute, because that is determined by decree of the Government
of the Republic of Slovenia as the authoritative body which sets out the highest possible amounts of
payments, and such decree refers to companies which are majority-owned by the Republic of Slovenia,
which the Company is.
123 ANNUAL REPORT DARS d.d. 2007 STATEMENT OF CORPORATE GOVERNANCE

The Company does not comply with the provision of point 3.5.5 of the Code, which recommends that
criteria to assess the existence of conflict of interests of supervisory board members should be determined
by the rules of procedure of the supervisory board, the statute or a special company management code.
Namely, the Rules of Procedure of the Supervisory Board and the Statute of DARS d.d. do not specify
criteria to assess conflicts of interest of supervisory board members.
The Company does not comply with the provision of point 5. of the Code, which specifies the management
board, because the Company does not have a unitary system of management, but a double board.
The Company complies with the provision in point 6. of the Code, which refers to relations in groups of
companies or affiliated companies. Operations so far have not raised the need to conclude contracts of
control; if the management or the supervisory board should assess that it is necessary to conclude such
contracts or agreements to ensure transparency, the Company will conclude them.
Provision 7.1.4. of the Code specifies that an auditor should attend the general meeting of shareholders of
a company. The Government of the Republic of Slovenia may invite auditors, in compliance with the ZVRS
and the Rules of Procedure of the Government of the Republic of Slovenia, to attend the session of the
government (or the Company’s general meeting).
The company does not comply in its entirety with Code provision 8.2, which specifies that a company
should ensure the publication of notifications and annual reports in English, because the Company does
not publish notifications in English language and prepares the annual report in English at a later date.
The company complies with the provision of point 8.3.4. of the Code, which specifies that annual and semiannual
reports should be available to shareholders for inspection; but the Company does not prepare a
semi-annual report.
The Company has so far not implemented the provision of point 8.6. of the Code, referring to the financial
calendar of important publications, because business events and other circumstances happen too rapidly,
which could mean that the calendar would have to be modified too often.
The Company implements the provision of point 8.9.1. of the Code, which specifies that companies should
publish proposals by the general meeting on amendments to the statute or reorganisation of the company
status, except in the part referring to possible investors.
The Company takes into consideration to a large extent Code provision 8.17., which refers to company
web pages, but the Company does not name a contact person responsible for investor relations.
The Company regularly publishes the Declaration of Conformity to the Code in its annual reports. There
are no modifications with regard to the Declaration of Conformity published in the annual report for
2006.
Celje, 24 June 2008 Management of DARS d.d. Supervisory Board of DARS d.d.
124 ANNUAL REPORT DARS d.d. 2007 STATEMENT OF CORPORATE GOVERNANCE