1. NIS INA PETROLEUM INDUSTRY OF SERBIA PETROLEUM INDUSTRY OF CROATIA Radovan Bajić Zoran Đogo Dragan Petrović Ivica Dostanić Zvezdan Cimbaljević MBA-Novi Sad, April, 2004

2. Agenda 1. History 2. Mission 3. Structure 4. Brands 5. Owner structure 6. Employees 7. Regions 8. Production 9. Number of petrol stations 10. Group members 11. Financies 12. Vision 13. Investmens 14. Health, Safety and Environmental Key Intelligence Topic (KIT): Key Intelligence Topic (KIT): Finding the best way of state oil companies transformation in former Yugoslav Republics

3. History 1949 – NAFTAGAS was founded as the Enterprise for Petroleum Exploration and Production 1974 1991 – Petroleum Industry of Serbia – NIS was established as a state company, having retained that status up today. The Company has been, to the vast extend, engaged in the exploration area in Yugoslavia as well as abroad through different modalities. 1964 - INA was founded when the operations of Naftaplin. 1974 - INA was transformed into a “ complex organisation of associated work ”, a step which also involved the formation of a number of separate companies. The organisation continued in this form until 1990. 1990 - Under the terms of Law 42/90 and the 61/91 supplement, INA became a state owned enterprise. 1993 - INA became a joint stock company (or “ d.d. ” ) pursuant to Law 60/93. 100% of the shares in INA are owned by the Republic of Croatia. 2003 – MOL, Hungarian Oil and Gas Company became INA ’ s strategic partner, owning 25% of the shares, plus one share.

4. Mission As a vertically integrated oil corporation, an influential player in the oil and gas market in Croatia and neighbouring countries, we are committed to working toward continuous upgrading of our businesses and quality of our products and services with the aim to create increasing value for our stakeholders. The company tends to exceed competitors by its top organization, professionalism, modern technical equipment and quality of goods and services. Its aim is also to be a company, whose employees will be proud of, loyal to and who will have the oportunity for self-improvement, according to their abilities and possibilities and in that way contribute to company growth.

5. Structure INA Organizational Structure Scheme General Manager Manager Corporative Processes Division Executive Oil and Gas Exploration Division Executive Supply, Oil Refining and Wholesale Trading Division Executive Retail Trading Division Executive Financial Division Manager Corporative Services Division Company Shareholders Company Shareholders Supervisory Board Supervisory Board Management Management

6. NIS – Organizational Structure Scheme Board of Trustees General Manager Supervisory Board Managing Board NIS-NAFTAGAS Novi Sad NIS-GAS Novi Sad NIS-ENERGOGASBeograd NIS- Oil Refinery Pancevo NIS- Oil Refinery Novi Sad NIS- Oil Refinery Belgrade NIS-FAMKrusevac NIS-JUGOPETROLBelgrade NIS-NAFTAGAS PROMET, Novi Sad NIS-Engineering Novi Sad

7. Brands

8. Owners structure

9. 100 % STATE OWNERSHIP

10. Employees The group employs 15,700 personnel The group employs 17,500 personnel

11. Regions Turkmenistan Serbia Kazakhstan Iran Egypt Russia Angola

12. Croatia Albania Syria Egypt Angola

13. Production Oil

14. Gas

15. Number of petrol stations

16. Group mambers

17. Financies

18. Financies

19. Vision To become the leading company at the regional market, as well as to facilitate the economical growth and the life quality of the whole society. On its way of accomplishing this vision, NIS will be open for everibody who knows how, who can and who wants to make it better. To be a recognised and desirable partner, known for excellence of its products and services, good and fair relations with customers and committed to safeguard the interests of its key stakeholders.

20. Investmens

22. Health, Safety and Environmental Protection NIS conducts its activities in compliance with good petroleum practice and in a manner that ensures the health and safety of its employees and others, that may be affected in any way by the Company’s activities. The Company performs its activities according to the standards that avoid disturbance of the environment, but if the disturbance does occur, it immediately initiates every effort to restore the environment to its former condition. -Health, Safety and Environmental Protection plans, procedures and training programs are the basic elements of the Company’s business philosophy. - Health, Safety and Environmental Protection are line management responsibilities. -Accidents, Injuries and Environmental Disturbances are preventable and unacceptable. -Everyone is responsible for his own safety and his colleagues’ safety at work. -Each employee must have positive attitudes towards permanent care of the environmental protection. - Employees are obliged to report any dangerous situation and injury to their superiors. - The following NIS Divisions are certified according to ISO 14000 norms: NIS-Oil Refinery, Pancevo; NIS-FAM, Krusevac; while the following NIS Divisions are certified according to ISO 9000 norms: NIS-Oil Refinery, Pancevo; NIS-Oil Refinery, Novi Sad; NIS-FAM, Krusevac; NIS-Oil Refinery, Belgrade.

23. INA pays great attention to the health and safety of people and to environmental protection in all areas of its activities. Concern for the environment has long ago ceased to be declarative but it forms part of our business policy. Quality management, health, safety and environmental protection have been integrated into INA’s management system. A number of INA’s organisational units have been certified. Refineries in Rijeka and Sisak, including Maziva Rijeka have been ISO 14001 certified, while refinery Sisak has also OHSAS certificate. Protecting the environment and safeguarding health and safety of the people is one of the top priorities of the INA Group. The nature of INA’s activities is such that it can affect health, safety and environment production, processing and marketing. Aware of its responsibility, INA has been by emissions and disposal of waste during oil and gas performing organized activities aimed at preserving the environment to the maximum possible extent. For this purpose INA has put in place an integrated management system of environmental protection. On the occasion of the International Environmental Protection Day, on 5h June 1999, INA received the highest state reward for the achievements in environmental protection - the gold plaque.