XII regular Shareholders’ meeting has been held

Shareholders’ Meeting of Elektroprivreda Crne Gore AD Nikšić passed the 2013 Business Report of Elektroprivreda Crne Gore AD Nikšić, financial statements, consolidated statements and the Auditor’s Report

The Auditor, PricewaterhouseCoopers, gave a positive opinion on the financial statement

The composition of the Board of Directors remained unchanged.

***

The 12th regular Shareholders’ Meeting of EPCG AD Nikšić took place today in Nikšić. Based on beforehand adopted agenda of the Meeting chaired by the Chief Financial Officer, Flavio Bianco, the following decisions were passed: decision on adoption of financial statements and consolidated financial statements for the year of 2013, decision on adoption of the Company’s Business Report, decision on conversion of debt, in the amount of 45.000.000€, into equity, decision on share with nominal value, issuing based on conversion of debt into equity, the approval whereby acquirer will take possession of issuer’s shares without being bound to publish the public bid for takeover as well as the decision on selection of the auditor and amendments to the Company’s Statute.

Full engagement of management structures and all employees resulted in realisation of the business plan and basic principles of the Business Policy, implementation of the Electricity Balance and ensured electricity supply to all customers. The final outcome of the annual financial operating reflects in €25,155,956 worth of profit, with an increasing of €30,939,924 compared with 2012 results .

Hydrological situation was significantly favourable which brought about significant increase of hydro-generation as compared to the plan. The total generation of electricity in 2013 amounted to 3,809.2 GWh, which is by 667.4 GWh (21.2%) more than planned, i.e. by 1,094GWh (40.3%) better than realisation achieved in the previous year.

The overall electricity losses registered in the distribution network in 2013 amounted to 479.6 GWh, thus being by 61.4 GWh lower as compared to losses incurred in 2012. The electricity collection rate in 2013 has reached 95.46%.

Despite problems caused by economic crisis and decrease in commercial activity, Elektroprivreda implemented in last year many investment projects worth €34.095.868. Due to improvements in Distribution and Metering Project, as well as completed overhauls in accordance with the plan and regular maintenance, operational readiness of power generating facilities has been maintained at high level. Also, high level of system reliability and safety of supply has been achieved.

As regards personnel policy, important emphasis has been put on workforce rationalization and optimization, as envisaged by the 2013 operating objectives. In 2013, average number of permanently employed workers in EPCG amounted to 2.339. All the provisions of the Collective Agreement were properly and timely observed. Payroll was accounted mainly within defined deadlines.

Considering the delicate economic situation in a local and regional energy market in rapid development and changes, the Company underlines that positive results can be maintain for the coming years only if the actions and optimizations undertaken during 2013 will continue, facing the new challenges that EPCG will have to deal with.

Pursuant to the Article 42, paragraph 5 of the Law on Business Organizations, term of office of members of the Board of Directors expired at the first regular annual shareholders' meeting. Accordingly, the new Board of Directors was appointed upon release from duty of the existing members and voting for the new ones. The new composition of the Board of Directors was not changed compared to the previous composition.