FY 2012 - Investor Relations - NIS

ContentThe Annual Report of NIS a.d. Novi Sad for 2012 represents a reliable account of Company’s business activity developmentand results accomplished in 2012. The report discloses data for NIS a.d. Novi Sad, as well as its subsidiaries. If data includesubsidiaries this is particularly highlighted.Report,in compliance with the Capital Market Law, comprises three entities:business report, stand-alone and consolidated financial reports, including auditors’ reports, as well as the statementsof persons responsible for report delivery. Abbreviations and terms used in the Report, as well as the contact data areprovided in the Appendix to the Report.This version of the Annual Report is a translation from the original document prepared in Serbian language. All possiblecare has been taken to ensure accurate representation of original document. However, in all matters of interpretationof information, views or opinions, the original Serbian language version of the document takes precedence over thistranslation.NIS in figures in 2011.........................................................................................................................................................................................4Foreword by Chairman of Board of Directors.............................................................................................................................................6Foreword by CEO.................................................................................................................................................................................................8BUSINESS REPORT........................................................................................................................................... 10• Key Events........................................................................................................................................................................................................12• Strategy.............................................................................................................................................................................................................18• Regional development..................................................................................................................................................................................20• Corporate Governance..................................................................................................................................................................................30• Business environment.................................................................................................................................................................................60• Risk Management..........................................................................................................................................................................................65• Market position...............................................................................................................................................................................................67• Business results analysis............................................................................................................................................................................69• Bank indebtedness........................................................................................................................................................................................76• Changes of more than 10% on assets, liabilities and net profit.......................................................................................................78• Major Byers and Suppliers..........................................................................................................................................................................81• Transfer prices................................................................................................................................................................................................84• Cases of uncertainty (uncertainty of collection)....................................................................................................................................85• Taxes..................................................................................................................................................................................................................86• Investment.......................................................................................................................................................................................................90• Shares................................................................................................................................................................................................................93• Rating.................................................................................................................................................................................................................99• Subsidiary Companies and Transactions with Affiliates.................................................................................................................. 102• Human Resources...................................................................................................................................................................................... 117• Environmental Protection, Industrial and Occupational Safety..................................................................................................... 130• Social responsibility.................................................................................................................................................................................... 141• Key Indicators – Historical Data (2009-2012)..................................................................................................................................... 147• Business plan............................................................................................................................................................................................... 148FINANCIAL REPORTS AND AUDITOR’S REPORTS........................................................................................... 150• Auditor’s report on stand alone financial report................................................................................................................................ 152• Financial report (stand alone).................................................................................................................................................................. 153• Balance sheet (stand alone)................................................................................................................................................................ 153• Income statement (stand alone)........................................................................................................................................................ 155• Cash flow statement (stand alone)................................................................................................................................................... 156• Changes in capital (consolidated)...................................................................................................................................................... 158• Notes to Stand Alone Financial Statements.................................................................................................................................. 161• Auditor’s report on consolidated financial report.............................................................................................................................. 230• Financial report (consolidated)................................................................................................................................................................ 231• Balance sheet (consolidated).............................................................................................................................................................. 231• Income statement (consolidated)...................................................................................................................................................... 233• Cash flow statement (consolidated)................................................................................................................................................. 234• Changes in capital (consolidated)...................................................................................................................................................... 236• Notes to Consolidated Financial Statements................................................................................................................................. 239STATEMENT OF PERSONS RESPONSIBLE FOR PREPARING OF ANNUAL REPORT........................................ 312APPENDICES.................................................................................................................................................. 313• Glossary......................................................................................................................................................................................................... 314• Contacts......................................................................................................................................................................................................... 318