Dalekov ovod od Group Future strategy, restructuring process and - PowerPoint PPT Presentation

Dalekov ovod od Group Future strategy, restructuring process and financing

Diclamer These materials and the oral presentation do not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Dalekovod Plc. (“Company”) nor should they or any part of them or the fact of their distribution form the basis of, or be relied on in connection with, any contract or investment decision in relation thereto. This presentation includes certain forward-looking statements. Actual results could differ materially from those included in the forward- looking statements due to various risks and uncertainties, including but not limited to changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings and availability of financing. These forward-looking statements represent the Company's expectations or beliefs concerning future events and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. None of the Company, their advisers or any other person accepts any liability for any loss howsoever arising, directly or indirectly, from the issue of this document or its contents. Additional detailed information concerning important factors that could cause actual results to differ materially is available in the Group's Annual Report. The third party information contained herein has been obtained from sources believed by the Company to be reliable. Whilst all reasonable care has been taken to ensure that the facts stated herein are complete and accurate and that the opinions and expectations contained herein are fair and reasonable, no representation or warranty, expressed or implied, is made by the Group or its advisors, with respect to the completeness or accuracy of any information and opinions contained herein. These materials include non-IFRS measures, such as EBITDA. The Company believes that such measures serve as an additional indicators of the Group's operating performance. However such measures are not replacements for measures defined by and required under IFRS. In addition, some key performance indicators utilized by the Company may be calculated differently by other companies operating in the sector. Therefore the non-IFRS measures and key performance indicators used in these materials may not be directly comparable to those of the Group's competitors. This document may not be distributed and may not be reproduced in any manner whatsoever any distribution or reproduction of the attached document in whole or in part is unauthorized. 2

Table of Contents  Introducing the Dalekovod Group  Business Performance in 2010  Restructuring Process and results for Q1/2011  Future outlook  Appendix

An overview of the Dalekovod Group  Dalekovod is vertically integrated company combining engineering, design, manufacturing Dalekovod Group and construction services in the following areas: • Power transmission and distribution projects, esp. transmission lines ranging from 0.4 kV to 1000 kV Substations of all types and voltage levels up to 500 kV • • Underground and underwater cables up to 220 kV • Telecommunication facilities for all types of networks and antennas Production of suspension and jointing equipment for all types of transmission lines and substations • from 0.4 kV to 1000 kV Manufacturing and installation of all metal segments for roadways, esp. for road lighting, guard rails • and traffic signalization, tunnel lights and traffic management • Electrification of railway and tram lines in cities Infrastructure projects in the energy , rail and road transportation and telecommunication sectors • offering : Engineering, Design, Production and Construction services  Insisting on world-renowned quality and environment protection standards along with continuous development of new products Dalekovod has established its basic goal - continuous improvement of customers' satisfaction The company currently employs 1.994 people of which 600 work internationally  In 2009 the company entered into new line of business – renewable energy  Providing complete services to infrastructure sectors in electric power industry, road and railway  Mission traffic, telecommunications, gas pipelines, construction industry and renewable energy industry. Vision  Becoming a leading company in its line of business in Europe! 4

Legal Structure of the Dalekovod Group Parent Dalekovod d.d. company Dalekovod Dalekovod TIM Dalekovod Unidal Ltd. Dalekovod Cindal Ltd. Cinčaonica Ltd. Inc, Topusko EMU Ltd. Vinkovci TKS Ltd. Doboj Doboj 100% 95.7% 100% 49.0% 92.9% 95.1% Production companies Anti-corrosion protection Works of expanded metal Production, sales and Manufacturing of hot Manufacturing of TL Galvanizing, anti- of steel by galvanizing made of steel, copper, services related to forgings (transmission structures and other corrosion protection, aluminum electricity meters lines, railway tracks, etc.) structures Bosnia and Herzegovina Construction Dalekovod Dalekovod Dalekovod Dalekovod Ukraine Ltd. Greenland Ltd. Ljubljana Ltd. Mostar Ltd. companies Dalekovod EKO Dalekovod Dalekovod 100% 100% EKO 100% Ltd. 50% Projekt Ltd. Professio Ltd. Project companies Design of transmission lines, Velika OIE Holding company for investments into substations, etc. Popina Ltd. 50% Macedonia 50% renewable energy sources Dalekovod DALCOM GmbH, Dalekovod Dalekovod Dalekovod Dalekovod Nigeria Freilassing Namibia Polska SA Kosovo Libya Subsidiaries & Albania Montenegro Macedonia Ukraine Rep. offices Sweden Norway Germany Kazakhstan Dalekovod Dalekovod Sportski grad 100% 100% 15% Adria Ltd. Ulaganja Ltd. TPN Ltd. SPV’s SPV for investments in TLM (factory for SPV for investments in the Sky Office Project (50% Consortium with Konstuktor and IGH (large International aluminium processing) project ownership) domestic construction companies) for Croatia investment in Spaladium Arena (Split, Croatia) 5

History of the Dalekovod Group Recent key developments  Managed to sign EUR 125,6 mn of international deals over the past 7 months  Continuously generating a higher share of revenues from foreign markets  Begun corporate restructuring in order to optimize 2010 operations and sustain competitive advantage ► First renewable energy project completed  Invested in renewable energy sources in order to lower the riskiness of the business and high reliance on the tendering 2009 ► Listing on the 1st quotation of ZSE process 2009 ► First investments into renewable energy 2009 ► Key international reference in Kazakhstan as an entry point to CIS markets 2005/2006 ► Key international reference in Iceland (230 km, 420 kV TL) as entrance point to Scandinavian markets (esp. Norway) 2004 ► First International acquisition of TKS Doboj, manufacturing plant for TL structures 2001 ► Listing on Zagreb Stock Exchange Revenues 2010: EUR 226,8 mn 350 (2nd quotation, mandatory by the law) 300 2000/2001 ► Introduction of the ESOP Program (60% of employees participated) 250 1993 200 ► Transformed into the joint stock company 150 1962 ► 1st International reference – Transmission Line in Togo 100 1949 50 ► Foundation of Dalekovod 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 6

International Presence and Recent Key References EUR 21.9 mn Norway- STATNETT – 103 km transmission line TL 420 kV EUR 80.5 mn Kazakhstan – KEGOC - 385,5 km transmission line TL 500 kV EUR 24.5 mn Island – Lansnet - 230 km transmission line 420 kV Projects Product orders (metal structures, suspension and jointing equipment) and other orders 7

Production Facilities Key Highlights Location of production facilities  The company owns four production facilities and has one JV (Unidal) Factory Velika with large number of different cataloguing codes: Gorica (metal Dugo Selo  Metal structures - Production of lattice and other steel structures, (Galvanization plant) structures (TL towers, masts and lighting poles, road suspension and equipment, railway equipment, halls, telecommunication etc.) jointing equipment) UNIDAL (Forged  Suspension and jointing equipment steel factory, JV  After completion of CINDAL plant (Bosnia and Herzegovina), company’s with Slovenian capacity for galvanizing services will significantly increase UNIOR)  The company plans to modernize targeted production segments and position itself as a niche player to ensure and increase product ZD6 (9,2 MW competitiveness WPP, JV)  Company considers JV’s in other segments of production TIM TOPUSKO  Company participates in 9,2 MW wind farm through a JV (Expended metal TKS Doboj (Metal factory) structures) Suspension and jointing equipment Metal structures 45 80% 5,0 90% 80% 4,5 40 80% 73% 70% 70% 74% 4,6 4,6 4,6 4,6 4,0 35 62% 70% 37 37 37 37 60% in 000 tons 56% 3,5 30 in 000 tons 56% 60% 3,7 50% 3,0 3,4 3,3 25 50% 26 40% 2,5 20 23 2,6 40% 32% 2,0 21 30% 15 30% 1,5 20% 10 20% 12 1,0 10% 5 10% 0,5 0 0% 0,0 0% 2007 2008 2009 2010 2007 2008 2009 2010 Production capacity Output Capacity Utilization Production capacity Output Capacity Utilization * Galvanization plant capacities and hot forgings capacities are not included 8