FUNDING PROPOSAL Authors: Mustafa Ehlizevak, Enes Kurbegović and Edvin Granić Gornji Vakuf – Uskoplje, february 2016.

ABOUT COMPANY Agrocentar was built in 2000 in under the program revitalization of the agricultural economy in Bosnia. Facilities allow processing of milk from 8000 to 10,000 liters / day. Water boiler capacity: capacity ofdraw-well is 2 l/sec, and capacity of eqipment is 2000 bottles/h Established the integrated system controlled quality EN ESO 9001: 2000 and HACCP. Over 20 products in 6 different product portfolios. The dairy was founded by a physical person who is the 100% owner of capital.

Headquarters(Gornji Vakuf – Uskoplje) Regional road M-17 Bugojno Gornji Vakuf-Uskoplje Mostar Headquarters(Gornji Vakuf – Uskoplje) 130km Capital city (Sarajevo) 50km 160km Sea port (Ploče) The nearest railroad (Jablanica)

PRODUCTS PORTOFOLIO Yogurt, liquid and solid Sour cream and cream Buttermilk Fresh cheese Souse „Vranički cheese“ Traditional cream Whey Natural spring water Sparkling water

PRODUCTS PORTOFOLIO

PRODUCTS PORTOFOLIO

VISION OF THE COMPANY Vision Establishment of the Company and engagement of resources that will provide development on the basics of market needs - customers or end consumers Ensuring continuity in improving the image of a successful and reliable company Achieving a high level of quality of the product / service delivery, and quality in all business segments

BUSINESS OBJECTIVES Consolidation of obligations on all grounds 1 Consolidation of obligations on all grounds 2 The increase in sales, production and market share 3 Build a capacity of processing 20 tons of milk on a daily basis 4 Formation of a competitive product range and quality marketing strategy 5 Relocate production line of diary to industrial zone 6 To establish bottling plant "Bistrica" in accordance with its international rating, and quality 7. Provide high-quality raw material base

COMPETITIVE ADVANTAGE IN PRODUCTION 1 geographical location (hilly - mountainous region, pure environment); 2 specificity of traditional products - natural and healthy food (specific biocenosis); 3 the possibility of organic and halal production with relatively small adjustments; 4 fast and cheap transformation with the introduction of new products in the range; 5 SME that has the opportunity to use financial incentives by how federal, as well as other ministries, funds, etc .; 6 efficiency and operability in adapting to market demands.

22 27 34 51 GROWTH OF EMPLOYEES C+3. Year C+2. Year C+1. Year Current

BALANCE SHEET 2013. 2014. 2015. 2016. Cash and cash equivalents 21.270   2013. index 2014. 2015. 2016. Cash and cash equivalents 21.270 0,90% 11.101 0,44% 8.194 0,33% 1.034 0,04% Short-term claims 198.923 8,46% 311.488 12,47% 274.632 11,03% 271.824 10,28% Short- term placement 0,00% 200 0,01% Supplies 144.570 6,15% 122.345 4,90% 158.461 6,37% 169.487 6,41% Prepaid costs 7.111 0,30% 2.738 0,11% 652 0,03% 1.263 0,05% CURRENT ASSETS 371.874 15,81% 447.872 17,93% 442.139 17,76% 443.808 16,79% Intangible assets 3.690 0,16% 0,15% 52.586 1,99% Land 252.567 10,74% 291.292 11,66% 372.677 14,97% 559.973 21,18% Buildings 1.193.765 50,75% 47,78% 1.199.331 48,18% 54,52% Plant and equipment 1.412.693 60,05% 1.424.227 57,01% 1.431.600 57,51% 1.423.692 53,85% Fixed assets in progress 4.179 0,18% 116.805 4,68% 4,69% 4,42% Tangible assets 2.863.204 121,71% 3.026.089 121,13% 3.120.413 125,35% 3.299.801 124,82% Gross fixed assets 2.866.894 121,87% 3.029.779 121,28% 3.124.103 125,50% 3.352.387 126,81% (Accumulated depreciation) 886.383 37,68% 979.431 39,21% 1.076.970 43,26% 1.152.614 43,60% NET FIXED ASSETS 1.980.511 84,19% 2.050.348 82,07% 2.047.133 82,24% 2.199.773 83,21% ACTIVE (ASSSETS) 2.352.385 - 2.498.220 2.489.272 2.643.581 Short-term loans 67.683 2,88% 171.901 6,88% 101.633 4,08% 125.366 4,74% Suppliers 265.465 11,28% 300.430 12,03% 385.735 15,50% 442.505 16,74% Gross wages 33.340 1,42% 32.054 1,28% 77.746 3,12% 127.172 4,81% VAT and other taxes, fees and charges 9.110 0,39% 13.034 0,52% 17.934 0,72% 67.092 2,54% CURRENT LIABILITIES 375.598 15,97% 517.419 20,71% 583.048 23,42% 762.135 28,83% Long-term loans 767.331 32,62% 766.189 30,67% 689.049 27,68% 660.845 25,00% Long –term liabilities Shares 312.758 13,30% 781.370 31,28% 31,39% 29,56% Revaluation reserves 852.721 36,25% 384.109 15,38% 15,43% 14,53% Retained earnings 43.977 1,87% 49.133 1,97% 51.696 2,08% 55.122 2,09% CAPITAL 1.209.456 51,41% 1.214.612 48,62% 1.217.175 48,90% 1.220.601 46,17% PASSIVE ( LIABILITIES)

INCOME STATEMENT

INCOME AND EXPENSES Others Unnecessary expenses Category 2015. 2016.   2015. 2016. Production 93,92% 92,17% Others 6,08% 7,83% REVENUES 100,00% 71,23% 65,38% Distribution 6,48% 7,08% Administration 5,91% 7,48% Amortization 6,74% 7,93% Interest 3,84% 4,87% 5,81% 7,27% EXPENDITURES Unnecessary expenses 4,56%

REQIRED MONEY ASSETS– EUR REQUIRED MONEY ASSETS- EUR ACTIVITY PLAN I PHASE OF ACTIVITY REQIRED MONEY ASSETS– EUR REFERENCE Reconcilation of short term obligation 200.000 Short term obligation I nvestment in exploatinf full capacity of diary and increasing of production 150.000 Investment in permanent founds TOTAL 350.000 II PHASE OF ACTIVITY REQUIRED MONEY ASSETS- EUR REFERENCE Supply of eqipment 180.000 Assessment for reqired equipment. Relocating producting line 300 000 Relocating producting line of diary in industrial zone Crafts 150.000 Buying raws and packings for assembled new production Marketing activities for products 30.000 Design , promotion and ad of products TOTAL 660.000

REQIRED MONEY ASSETS– EUR ACTIVITY PLAN II PHASE OF ACTIVITY REQIRED MONEY ASSETS– EUR REFERENCE Increasing capacities of water production 70.000 Buying additional eqipment for increasing capacities of boiling water Construction supply for boiling water 50.000 Production loss 60.000 Planned 1 month UKUPNO 180.000 III PHASE OF ACTIVITY REQIRED MONEY ASSETS– EUR REFERENCE New products and expanding of production, marketing and promotion 130.000 Buying cows 320.000 Cows for own raw supply TOTAL 450.000 PHASES OF ACTIVITIES REQIRED MONEY ASSETS– EUR TIME DURATION First phase 350.000 Second phase 840.000 Third phase 450.000 TOTAL 1.640.000

agrocentar.gv@bih.net.ba AGROCENTAR GORNJI VAKUF USKOPLJE, PAJIĆ POLJE bb EMAIL: agrocentar.gv@bih.net. TEL:+38730286210