Corporate Responsibility Survey -Serbian Case Vesna Ilić Ljušić

Corporate Responsibility Survey -Serbian Case. Vesna Ilić Ljušić Business Operations Belgrade Stock Exchange Skopje, May 19, 2009

Content: Facts Market structure Trading statistics BELEX vs. SEE Survey - Corporate responsibility Conclusion

Facts: Serbia was the last in the SEE to enter market reforms, The Belgrade SE registered 7 transactions in equities in the whole 2001, Serbias’ population 7. 4 mln, but only aproximately 0. 3% trade, No IPOs, Privatization of state-owned copmanies ongoing – but no companies listed, Underdeveloped debt market – state, municipal, corporate bonds. . .

Market Segmentation Official Market Unofficial Market • Prime Market (3 shares and 8 1826 securities bonds) • Standard Market (1 share)

Equity Market Capitalization

Belgrade Stock Exchange Turnover

Average Daily Equity Turnover

BELEX 15 & BELEXline & MSCI BELEX 15 § 15 most liquid shares § Free-float Mcap weighted § 26% of free-float Mcap of BELEX § Real-time calculated § Max weight 20% § Index certificates traded in Frankfurt, Stutgart, Vienna and Warsaw BELEXline § 80 components § Free-float Mcap weighted § 51% of free-float Mcap of BELEX

FIS -Foreign Investors Participation in Shares-

BELEX in the SEE Region

ex-Yu region in numbers Total Market Capitalization 2007 (EUR) Stock Exchange Banja Luka SE Total Market Capitalization 2008 (EUR) Change 3. 961. 412. 782 1. 884. 483. 571 -52, 43% Belgrade SE 18. 179. 636. 892 10. 345. 197. 540 -43, 09% Ljubljana SE 26. 857. 834. 566 15. 617. 491. 000 -41, 85% Macedonian SE 4. 714. 939. 558 2. 027. 333. 625 -57, 00% NEX Podgorica SE 3. 581. 250. 320 1. 419. 802. 960 -60, 35% Montenegro SE 3. 698. 754. 993 2. 256. 001. 797 -39, 01% Sarajevo SE 7. 934. 480. 630 3. 992. 515. 661 -49, 68% 53. 746. 435. 637 24. 146. 574. 096 -55, 07% Zagreb SE Stock Exchange Banja Luka SE Total Turnover 2007 (EUR) Total Turnover 2008 (EUR) Change 379. 676. 297 140. 651. 405 -62, 95% Belgrade SE 2. 059. 797. 987 882. 476. 067 -57, 16% Ljubljana SE 2. 226. 881. 719 1. 285. 790. 000 -42, 26% Macedonian SE 681. 605. 231 201. 571. 384 -70, 43% NEX Podgorica SE 452. 825. 757 82. 955. 440 -81, 68% Montenegro SE 277. 837. 779 77. 378. 603 -72, 15% Sarajevo SE 651. 569. 748 243. 926. 812 -62, 56% 9. 071. 278. 835 4. 236. 909. 987 -53, 29% Zagreb SE

SEE Exchanges Equity Market Cap

SEE Exchanges Equity Turnover

Corporate Governance Survey

Corporate Governance - March 2009 BELEX 15 & TOP 10 (cont. ) vs. CEE/SEE

Corporate Governance - March 2009 BELEX 15 & TOP 10 (cont. ) BELEX 15 abs TOP 10 (cont) % abs % LOCAL LANGUAGE WEBSITE 15 100% 10 100% ENGLISH LANGUAGE WEBSITE 13 87% 9 90% LIST OF MANAGEMENT / BOARD MEMBERS ONLINE 11 73% 7 70% 3 20% 1 10% ADDITIONAL INFORMATION ON MANAGEMENT / BOARD ANNUAL FINANCIAL REPORT 2008 (serbian) 12 80% 6 60% ANNUAL REPORT 2007 (serbian) 6 40% 2 20% ANNUAL REPORT 2007 (english) 3 20% 1 10% SEMI-ANNUAL AND QUARTERLY FINANCIAL REPORTS 9 60% 5 50% SHAREHOLDING STRUCTURE ON WEBSITE/ANNUAL REPORT 7 47% 3 30% GOVERNANCE STRUCTURE ON WEBSITE/ANNUAL 12 80% 7 70% GOVERNANCE STRUCTURE IN ANNUAL REPORT 2 13% 2 20% SHAREHOLDERS RIGHTS POLICY ON WEBSITE/ANNUAL 3 20% 0 0% ENVIRONMENTAL STANDARDS ON WEBSITE/ANNUAL 5 33% 3 30% ENVIRONMENTAL STANDARDS IN ANNUAL REPORT 1 7% 0 0% EMPLOYEE DEVELOPMENT/BENEFIT POLICY ON WEBSITE/ANNUAL 4 27% 1 10% EMPLOYEE DEVELOPMENT/BENEFIT POLICY IN ANNUAL REPORT 2 13% 1 10% SPONSORSHIP INFORMATION ON WEBSITE/ANNUAL 3 20% 2 20% COMPLIANCE WITH CORPORATE GOVERNANCE CODE 7 47% 2 20% NAMES OF SUPERVISORY BOARD MEMBERS 4 27% 0 0% ADDITIONAL INFORMATION ON SUPERVISORY BOARD MEMBERS 4 27% 0 0%

Corporate Governance - March 2009 BELEX 15 vs. CEE/SEE

Corporate Governance - March 2009 Top 10 (continuous) - last 3 surveys

Corporate Governance - March 2009 Top 10 (continuous) - last 3 surveys TOP 10 (cont) June 2007 TOP 10 (cont) February 2008 TOP 10 (cont) March 2009 LOCAL LANGUAGE WEBSITE ENGLISH LANGUAGE WEBSITE LIST OF MANAGEMENT/BOARD MEMBERS ONLINE 90% 80% 80% 100% 90% 70% ADDITIONAL INFORMATION ON MANAGEMENT/ BOARD ANNUAL FINANCIAL REPORT (serbian) ANNUAL REPORT (english) 10% 90% 20% 10% 90% 0% 10% 60% 20% 10% SEMI-ANNUAL AND QUARTERLY FINANCIAL REPORTS SHAREHOLDING STRUCTURE ON WEBSITE GOVERNANCE STRUCTURE IN ANNUAL REPORT SHAREHOLDERS RIGHTS POLICY ON WEBSITE 40% 70% 20% 10% 20% 70% 20% 50% 0% 0% 50% 30% 70% 20% 0% SHAREHOLDERS RIGHTS POLICY IN ANNUAL REPORT ENVIRONMENTAL STANDARDS ON WEBSITE ENVIRONMENTAL STANDARDS IN ANNUAL REPORT 0% 20% 10% 0% 30% 0% EMPLOYEE DEVELOPMENT/BENEFIT POLICY ON WEBSITE 20% 10% EMPLOYEE DEVELOPMENT/BENEFIT POLICY IN ANNUAL REPORT SPONSORSHIP INFORMATION ON WEBSITE 10% 20% COMPLIANCE WITH CORPORATE GOVERNANCE CODE NAMES OF SUPERVISORY BOARD MEMBERS 0% 20% 20% 0%

Corporate Governance - March 2009 BELEX 15 - last 3 surveys

Corporate Governance - March 2009 BELEX 15 - last 3 surveys BELEX 15 June 2007 BELEX 15 February 2008 BELEX 15 March 2009 LOCAL LANGUAGE WEBSITE ENGLISH LANGUAGE WEBSITE LIST OF MANAGEMENT/BOARD MEMBERS ONLINE 93% 86% 79% 100% 93% 100% 87% 73% ADDITIONAL INFORMATION ON MANAGEMENT/ BOARD ANNUAL FINANCIAL REPORT (serbian) ANNUAL REPORT (english) SEMI-ANNUAL AND QUARTERLY FINANCIAL REPORTS SHAREHOLDING STRUCTURE ON WEBSITE GOVERNANCE STRUCTURE IN ANNUAL REPORT SHAREHOLDERS RIGHTS POLICY ON WEBSITE SHAREHOLDERS RIGHTS POLICY IN ANNUAL REPORT ENVIRONMENTAL STANDARDS ON WEBSITE ENVIRONMENTAL STANDARDS IN ANNUAL REPORT 14% 86% 21% 14% 36% 71% 43% 14% 0% 36% 14% 20% 87% 7% 13% 60% 33% 60% 7% 20% 7% 40% 13% 20% 80% 40% 20% 60% 47% 80% 13% 20% 0% 33% 7% EMPLOYEE DEVELOPMENT/BENEFIT POLICY ON WEBSITE 29% 20% 27% EMPLOYEE DEVELOPMENT/BENEFIT POLICY IN ANNUAL REPORT SPONSORSHIP INFORMATION ON WEBSITE COMPLIANCE WITH CORPORATE GOVERNANCE CODE NAMES OF SUPERVISORY BOARD MEMBERS 14% 29% 7% 29% 13% 33% 40% 13% 20% 47% 27% ADDITIONAL INFORMATION ON SUPERVISORY BOARD MEMBERS 7% 13% 27%

Conclusion Online disclosure improved (english and local language web site, list of management/board members, governance structure, annual and financial report, shareholding structure. . . ), but additional information are still not complete CG Information on the web sites are available in general, but oftenly not easily accesible (web sites are still not investor oriented) Belgrade SE issued CG Code in cooperation with IFC (International Finance Corporation ) CG code adopted by larger number of companies Belgrade SE persistant educational efforts on bringing CG to companies Making a progress, but still long way to go. . .

Thank you! Belgrade Stock Exchange www. belex. rs www. belex. info