ASSOCIATION OF METAL INDUSTRY, ELECTRICAL INDUSTRY, METAL MINES AND METALLURGY UPDATE ON MARKET DEVELOPMENTS AND PERSPECTIVES IN THE METAL AND ELECTRICAL INDUSTRY IN SERBIA Ljubiša Obradović, secretary Belgrad, November 18th 2014

NUMBER OF COMPANIES AND EMPLOYEES Source: Serbian Business Registers Agency Belgrad, November 18th 2014 Total of employees Total of companies Employment and number of companies in the metal and electrical industry Metalworking Machine construction Electrical machinery and appliances Traffic objects 1

Belgrad, November 18th 2014 BASIC INDEX OF INDUSTRIAL PRODUCTION – METAL WORKING =100 2

Belgrad, November 18th 2014 BASIC INDEX OF INDUSTRIAL PRODUCTION – MACHINE CONSTRUCTION =100 3

Belgrad, November 18th 2014 BASIC INDEX OF INDUSTRIAL PRODUCTION – ELECTRICAL MACHINERY AND APPLIANCES =100 4

Belgrad, November 18th 2014 BASIC INDEX OF INDUSTRIAL PRODUCTION – TRAFFIC OBJECTS =100 5

Belgrad, November 18th 2014 IMPORT OF PRODUCTS IN THE METAL AND ELECTRICAL INDUSTRY IN THE YEARS 2013 AND

Belgrad, November 18th 2014 EXPORT OF PRODUCTS IN THE METAL AND ELECTRICAL INDUSTRY IN THE YEARS 2013 AND

Belgrad, November 18th 2014 BALANCE OF IMPORT AND EXPORT OF PRODUCTS IN THE METAL AND ELECTRICAL INDUSTRY IN

Belgrad, November 18th 2014 IMPORT OF METAL WORKING PRODUCTS IN THE YEARS 2013 AND

Belgrad, November 18th 2014 IMPORT OF METAL WORKING PRODUCTS IN THE YEARS 2013 AND

Belgrad, November 18th 2014 IMPORT OF PRODUCTS IN THE METAL AND ELECTRICAL INDUSTRY BY IMPORTANT COUNTRIES IN THE YEARS 2013 AND

Belgrad, November 18th 2014 EXPORT OF PRODUCTS IN THE METAL AND ELECTRICAL INDUSTRY BY IMPORTANT COUNTRIES IN THE YEARS 2013 AND

Belgrad, November 18th 2014 IMPORTANT IMPORT AND EXPORT PRODUCTS IN 2013 IN M. $ Import products Parts and accessories for vehicles Motor vehicles Other machines of general purpose Machines for special purposes TV and radio transmitters Electrical motors and generators Energy machines exept motors Equipment for the distr. of electricity Other metal products Parts and accessories for vehicles Farming machines Other electrical equipment Measurement instruments and appliances 122 Export products Motorised vehicles Other electrical equipment Electrical motors and generators Home appliances Other machines of general purpose Parts and accessories for vehicles Machines for special purposes Arms and ammunitions Energy machines exept motors Dishes, boilers and radiators Isolated cables and conductors Equipment for the distr. of electricity TV and radio transmitters

Belgrad, November 18th 2014 IMPORTANT IMPORTERS AND EXPORTERS IN 2013 IN M. $ Importers Fiat automobili Srbija Siemens doo Beograd Johnson controls automotive Dad draxlmaier automotive –Zrenjanin Gorenje – Beograd i Valjevo Roaming electronic CT computers – Beograd PMC automotive Kragujevac Leoni wiring systems southest Prokuplje Grundfos manufacturing Bg Eaton Electric Doo Sr. Mitrovica Yura corporation-Rača Exporters Fiat аutomоbili Gorenje Valjevo i Pazova, Zaječаr Siemens doo Beograd Yura corporation-Rača Leoni Wiring System southeast doo Prokuplje Ball pakovanja Evropa Bg–Zemun Dad Draxlmaier Automotive Roaming electronics Grundfos manufacturing Bg Prvi Partizan Užice Eaton Electric Doo Sr. Mitrovica IGB Automotive In đ ija

Belgrad, November 18th 2014 IMPORT OF PRODUCTS IN THE METAL AND ELECTRICAL INDUSTRY January-October

Belgrad, November 18th 2014 EXPORT OF PRODUCTS IN THE METAL AND ELECTRICAL INDUSTRY January- October

Belgrad, November 18th 2014 BALANCE OF IMPORT AND EXPORT OF PRODUCTS IN THE METAL AND ELECTRICAL INDUSTRY January-October

Belgrad, November 18th 2014 IMPORT OF METAL WORKING PRODUCTS January-September

Belgrad, November 18th 2014 EXPORT OF METAL WORKING PRODUCTS January-September

Belgrad, November 18th 2014 IMPORT OF PRODUCTS IN THE METAL AND ELECTRICAL INDUSTRY BY IMPORTANT COUNTRIES JANUARY-SEPTEMBER

Belgrad, November 18th 2014 IMPORT OF PRODUCTS IN THE METAL AND ELECTRICAL INDUSTRY BY IMPORTANT COUNTRIES JANUARY-SEPTEMBER

Belgrad, November 18th 2014 IMPORTANT IMPORT AND EXPORT PRODUCTS JANUARY-SEPTEMBER 2014 IN M. $ Увозни производи Parts and accessories for vehicles Motor vehicles Other machines of general purpose Machines for special purposes TV and radio transmitters Energy machines exept motors Electrical motors and generators Measurement instruments and appliances Farming machines Other metal products Home appliances Cables and conductors Извозни производи Motorised vehicles Other electrical equipment Electrical motors and generators Home appliances Parts and accessories for vehicles Energy machines exept motors Machines for special purposes Arms and ammunitions Dishes, boilers and radiators Other machines of general purpose Metal constructions Cables and conductors

Belgrad, November 18th 2014 IMPORTANT IMPORTERS AND EXPORTERS JANUARY-SEPTEMBER 2014 IN M. $ Importers Fiat automobili Srbija Siemens doo Beograd Gorenje – Beograd i Valjevo Johnson controls automotive Dad draxlmaier automotive –Zrenjanin Grundfos manufacturing Bg TE KO Kostolac Kostolac Leoni wiring systems southest Prokuplje RTB Bor Grupa RTB Bor PIN Computers Novi Sad TRS Europpe Petrovaradin Tetra PAK Production Beograd Ball pakovanja Evropa Beograd Exporters Fiat аutomоbili Siemens doo Beograd Gorenje Valjevo i Pazova, Zaječar Yura corporation-Rača LBK i Livnica Kikinda Leoni Wiring System southeast doo Prokuplje Dad Draxlmaier Automotive Ball pakovanja Evropa Bg–Zemun Grundfos manufacturing Bg Prvi Partizan Užice Roaming electronics Fresenium medical care Vršac

Belgrad, November 18th 2014 IMPORTANT IMPORT AND EXPORT PRODUCTS WITH GERMANY – JANUARY- SEPTEMBER 2014 IN M. $ Import products Parts and accessories for vehicles Personal cars…………………… Boards, tins and alluminum bands……………….. 48 Parts for machines…… Motorised vehicles for goods transport Tractors and other towing vehicles… Cables and conductors…… Harvesting, shearing and sorting machines… Siedecars and semi-sidecars (not motorised)….21 Copper wire………… Export products Parts for machines… Cables and conductors… Personal cars………………… Water heaters… Medical instruments and appliances…… Boards, tins and alluminum bands…………….. 40 Parts and accessories for motorised vehicles 38 Refrigerators and freezers…… Electrical transformators and static convertors 32 Switches, relais, fuses……………………

Belgrad, November 18th 2014 FOREIGN DIRECT INVESTMENTS (NETTO) AND IMPORTANT COUNTRIES IN M € Total Austria Norway Greece Germany Italy Holland Slovenia Russia Luxemburg Switzerland

Belgrad, November 18th 2014 INDUSTRIALISATION Start of a renewed industrialisation programme of Serbia with three key instruments of technological policy for the revival of the Serbian industry: 1.REVITALISATON – consolidation and bringing to a functional state of existing production capacities, large companies and industrial systems. 2.REENGINEERING – technological modernisation and successive introduction of high-tec elements. 3.DEVELOPMENT – focus change in industrial production from low to high technologies. Industrial branches which have potential for future development: Automotive industry, road and track vehicles; Information technologies; Electronics; Agricultural mechanisation; Defense industry. 26

Belgrad, November 18th 2014 SUPPORT FOR FOREIGN INVESTORS Foreign investor, legal or physical entity, is enabled to: found his own company (up to 100% ownership) buy shares of an existing company get a licence (consession) for the use of natural ressources, goods in general use or be engaged in an activity of general interest in accordance to the law. get a permit to build (according to new legal regulations on planning and building), use and transfer (B.O.T. built, operate and transfer) a certain object, plant, as well as other infrastructural and communication objects. obtain any other property right of a foreign investor for realising his business interests. Be excluded from paying taxes on grounds of importing new equipment for his principal operations. Signed CEFTA-Agreement – Serbia is in the center of the CEFTA-zone where it has custom-free access to a market of 30 million people. The only country outside the Commonwealth of Independent States that has a signed Free Trade agreement with the Russian Federation, Belarus, Turky and the EFTA-countries. 27