FY 2012 - Investor Relations - NIS

Price trends of NIS shares and price trends of the peer companies from the region*1.21.11.00.90.80.70.6NIS norm INA norm Hellenic Petroleum norm MOL Plc norm OMV AG normJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec* In order to facilitate comparability of trends of NIS shares price and indices of Belgrade, London and Moscow Stock exchange all values were normalizedand brought down to same initial value of 1 (or 100%)Price trends NIS shares and trends of the Belgrade Stock Exchange indices*1.301.251.201.151.101.051.000.950.900.85BELEX15 norm BELEXline norm NIIS normJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec* In order to facilitate comparability of trends of NIS shares price and indices of Belgrade, London and Moscow Stock exchange all values were normalizedand brought down to same initial value of 1 (or 100%)Activities of the Investor RelationsDepartmentDuring 2012, NIS was dedicated to accomplishingits goal of ensuring a high level of transparency andopenness in business operations and providing timely,accurate and complete information to NIS shareholdersand investors. In order to achieve this goal, NISprovided the shareholders and investors with additionalinformation in addition to financial statementsprepared in line with legal regulations and publishedbefore legally prescribed deadlines as well as enableda direct communication with the Company’s management.After each quarter, Company business resultswere presented by the management and in press conferences.Also, upon investors’ requests, one-on-onemeetings were organized while NIS also took part ininvestor conferences.In July 2012, a new website for investors andshareholders was launched providing an easy, quickand up-to-date access to all relevant information.NIS Investor Day was organized for the first timein the Pančevo Oil Refinery where the steps NIS hadmade towards the modernization of refinery processingwere presented as well as business plans for thefollowing three years, which would fully strengthen theCompany’s leading position in the oil business in theregion of Southeast Europe. After the successful presentationand open dialogue between NIS managementrepresentatives and guests, all the participants visitedthe refinery where they could see the newly-built plantsof the MHC/DHT complex and a number of other facilitiesof the refinery infrastructure.On the 11th International Conference of the BelgradeStock Exchange Market named ’’UPGRADE INBELGRADE 2012’’, NIS was awarded with the title ofthe best domestic company in terms of investor relationsfor the second consecutive year. The AwardingCommittee assessed the activities related to investorrelations of nominated companies according to 50 criteriaclassified in three categories. The final rank list,based on which the best company was declared, wasset up based on data on compliance with reporting obligations,transparency of information at the corporatewebsite as well as based on a questionnaire conductedby the Belgrade Stock Exchange Market among investors.The Committee’s explanation stated that NIS hadextended boundaries in the area of investor relationsagain in 2012 by its continuous work and enhancingthese relations.DividendsIf the Company made profit, it is distributed in accordancewith the Law, Articles of Association and incompliance with the provisions of Article 8.1.3 of TheAgreement of Sale and Purchase of Shares of NaftnaIndustrija Srbije j.s.c. Novi Sad. In the case of a Decisionon the approval of the payment of dividends is made byshareholders’ Assembly, the amount of dividend will bedistributed and the day on which the list of shareholderswho are entitled to the dividend is established, are alsodefined in the Decision.The Companies Law prescribes that the profit fromthe adopted financial reports be first allocated to coveringlosses from previous years. In 2012 no dividends for2011 were paid out due to accumulated loss from previousyears.NIS j.s.c. Novi Sad Dividend Policy was adopted atthe IV Regular Shareholders' Assembly held on 25 June2012 NIS long term dividend policy is to declare dividendstotalling at least 15 per cent of net profit. NIS dividendpolicy is based on balanced approach that takesinto account the need to retain earnings for the purposeof financing future investments as well as the return onequity and dividend pay-out ratio.When proposing dividends, the Company’s Board ofDirectors takes into consideration a range of factors, includingthe financial position, investment plans for theupcoming period, loan repayment schedules, macroeconomicenvironment and legal requirements.Any of these factors alone or combined, if significantenough, may influence the proposed dividend payment ifany. Dividends will be declared annually and in SerbianDinar (RSD).96 • Shares Annual report 2012Annual report 2012Shares • 97