FY 2012 - Investor Relations - NIS

NIS proceeded with the activities related to soil andgroundwater remediation at facilities at which contaminationhas been identified. Both soil and ground waterremediation measures and additional researches inview of preventing and reducing contamination havebeen planned and implemented at the contaminatedlocations.In view of defining contaminated areas of groundwaterat the locations of the Sales and Distribution,Smederevo Warehouse and Belgrade Warehouse, thegeoelectric surveys (geoelectric surveying) have beenconducted. The surveys have been implemented in cooperationwith the Geophysics Sector- Scientific andTechnological Centre and Geophysical Services – OilfieldServices. The geoelectric surveying method iscompletely non-destructive and non-invasive methodcheaper than exploratory drilling and allows the devel-As a socially responsible company with clearly definedstrategic objectives, in 2012, NIS focused its activitieson solving problems related to hazardous oilywaste. By hiring authorized companies holding integralhazardous waste management licenses, large wasteamounts have been permanently disposed.In Pančevo Oil Refinery, the problem of spentsulphuric acid, pyralene transformers has been comopmentof 2D electrical resistivity models for differentgeological environments (2D ground resistivity model).The Exploration and Production Block continued theimplementation of the Historical Soil Contamination RemediationProject. In 2012, the remediation of 10 primaryoily mud pits was initiated (Turija Oilfield).Environmental Protection CostsFor the impact produced on environmental media(water, air and soil), NIS j.s.c. Novi Sad pays different fees.The units which must have integrated permits (Pančevo OilRefinery, Novi Sad Oil Refinery and Oil and Gas Preparationand Transportation Unit, Elemir) pay a fee for the emissionof SO2, NOx and particulate matters as well as for the disposalof hazardous and non-hazardous waste to the EnvironmentalProtection Fund of the Republic of Serbia.Fee Amount 2011 Amount 2012Environmental Protection Fee (RSD ) (RSD )Ecology Fee 6,263,158 129,192Costs of Environmental Taxes 86,909,541 94,154,787Costs of Wastewater Treatment Services 148,026,517 94,698,181OTHER 15,609,564 72,000,000Total: 321,449,658 320,248,263pletely solved. The problem of oil sludge and sludgecontainers the Pančevo Oil Refinery have been solvedto a considerable extent as well as the problem ofthe separator, tank sludge and other oily waste in theSales and Distribution Block. In 2012, the funds in theamount of 121 millions RSD have been invested forthe disposal of hazardous waste.Social responsibilityKey Social Responsibility Projectsin 2012The social responsibility is a part of NIS' strategicactivity. NIS undertakes its sponsor and donor activitiesbased on the document titled "Sponsorship and DonationPolicy" setting forth objectives and principles for theaforementioned activities, key donation and sponsorshiptrends, as well as the rules for selection of donation andsponsorship projects.The priority trends very depending on the program:Culture without limits, Sports Energy, Science and YoungTalents, Humanitarian Projects, and Cooperation in Orderto Achieve Development. This year, for the first time,within the program Cooperation in Order to AchieveDevelopment, one portion of funds was allocated bymeans of the public tender, thus making the programeven more transparent. Furthermore, the campaign NISPhilanthropy was conducted in the Company, where theemployees themselves collected humanitarian aid forpeople in need.This year, NIS received the main prize for sociallyresponsible conduct in Serbia, within the framework of"Serbia Has Quality" Quality Festival and Campaign. Thisaction was organized by "My Serbia" Association, withthe support of the Chamber of Commerce of Belgrade.This award was presented for NIS' outstanding contributionto the development of society in which it performsits business activity.The objective of the "Sports Energy" program is asupport to professional sports and sports for children,including wellness promotion.• This year, NIS has become the major sponsorof the Tennis Association of Serbia, thus extendingcooperation with this organization, implying approachto the youngest population, support to junior players,development tennis camps and schools, jointparticipation in humanitarian activities. As a part of thiscooperation, "NIS Open Tennis School" was organizedat the Republic Square, a manifestation intended forchildren who had the opportunity to learn the first stepsin tennis. Traditionally, NIS supports the best tennisplayers of Serbia who compete in the Davis and FEDCup, thus promoting the highest sports values, teamspirit, and excellent results.• The 25th Belgrade Marathon was supported,which gathered a record number of participants - morethan 2,300 contestants from 35 countries in marathonand semi-marathon disciplines, as well as more than20,000 racers in the pleasure race.• Traditionally, NIS supported the "Bike RockMission", a humanitarian caravan organized by theHarley Davidson Club of Serbia. The bikers' caravanstarted at the NIS PETROL fuel station in Belgrade thisyear as well, and headed in the direction of KosovskaMitrovica, where a rock concert with participation ofwell-known rock bands was held at the end of the day.• Support provided to "Partizan" Basketball Club andthe Bicycle Association of Serbia. Special attention wasgiven to the development of children's and youth sport,adequate growth of young generation, and promotionof new talents.The "Culture without Limits" Program relates to culturalinstitutions and festivals of local, national, and internationalsignificance, as well as the Serbian-Russiancooperation projects.• FEST - the greatest international film festival inSerbia supported for the fourth time in sequence. Withregard to the 40th jubilee FEST, a reward competition"Visiting FEST with NIS" for the best short film on freetopic, recorded with a mobile phone. The winner, "Wayto Success", by author Lazar Bogojevic, was rated bymeans of voting on the NIS' Facebook page and it wasplayed on the last FEST night. Activities were organizedfor the audience under the title "Like in Film".• International gathering of children "Joy of Europe"continued for the fourth successive year. Over 700 kids140 • Environmental Protection, Industrial and Occupational Safety Annual report 2012Annual report 2012Social responsibility • 141