CONTENTS 1. Letter to Shareholders 2. Brief History 3. Organization Structure 3.1 Organization Structure - Energoprojekt Group 3.2 Organization Structure - Energoprojekt Holding 4. Main Business Activities 5. Markets 6. Selected References 6.1 Power 6.2 Buildings 6.3 Infrastructure 6.4 Water - ecology 6.5 Industry 6.6 Information Technologies 7. Financial Highlights 8. Financial Report 8.1 Auditors Report 8.2 Balance Sheet 8.3 Income Statement LETTER TO SHAREHOLDERS Dear Sirs/Madams, Business operations of the Energoprojekt Group have been successful in spite of diffi culties - negative effects of the economic crisis in the world, in Europe and especially in the Republic of Serbia. In 2011, Energoprojekt Group realized the consolidated total revenue amounting to 235.8 million euros representing 99% plan realization and 3.1% growth compared to the previous year. 62% of the total revenue were realized abroad and 38% were realized domestically. The most important market share in realized total revenue for 2011 was that of the region of Serbia with 38%, followed by the CIS (Kazakhstan, Russia) with 23%, the region of Africe (Uganda, Nigeria, Ghana, Zambia, Algeria, Zimbabwe, Guinea) with 16%, the region of Middle East (Qatar, Abu Dhabi, Oman, Dubai) with 13%, the region of South America (Peru) with 9% and the region of Europe (B&H – Republic of Srpska, Montenegro, Macedonia, Grat Britain, Germany, Cyprus) with 1%. Energoprojekt Group has realized the consolidated gross profi ts of 5.6 million euros. The value of newly contracted business arrangements is 236.9 million euros: 107.6 million euros (45%) in the country and 129,3 million euros (55%) abroad. We consider this to be a good result in the existing conditions of business operations and performed fi nancial consolidation of the system. The most important contracts that have been fully or partially realized in the course of 2011 are: Rehabililtation and modernization of Unit B2 of the TPP Kostolac B, Kostolac, Serbia New energy supply system of the Clinical Center Niš, Niš, Serbia Construction of two DC TL 330kV, 2x240km, Nigeria Construction of a new sulphuric acid plant and reconstruction of the fl ash smelter in CMSC (Copper Mining & Smelting Complex) Bor, Bor, Serbia 1.0 Annual Report 2011 | Letter to Shareholders In 2011, Energoprojekt Group realized the con- solidated total revenue amounting to 235.8 mil- lion euros representing 99% plan realization and 3.1% growth compared to the previous year. 62% of the total revenue were real- ized abroad and 38% were realized domestically. Design and construction of a wine producing plant and villas, Saryagash, Kazakhstan Design and construction of a hotel at Aktau, Republic of Kazakhstan Construction of a cash processing center of the Bank of Ghana, Accra, Ghana Rehabilitation and reconstruction of 51 km of the road in the region of Alto Peru, Peru Consultancy services on the project of construction of the power transmission and distribution system in the northern emirates of the UAE Design and construction supervision of the Ourkiss dam project, Algeria Consultancy services and supervision of the fi rst phase of the irrigation and hydroelectric project Alto Piura, Peru At the end of 2011, in the Energoprojekt Group, there were 319 million euro worth contracted business operations left for realization (120 million euros in the country; 199 million euros abroad). Realized results make the market position of the Energoprojekt Group stable and along with organizational changes in compliance with the new Law on Companies and weakening of the global crisis, give the potential for the income and profi ts growth in the future. Energoprojekt Holding plc. is a joint stock company whose shares have been on the A list of the Belgrade Stock Exchange since July 2007, together with only four more companies. According to degree of realized trading, the shares of Energoprojekt Holding plc. are among the most liquid shares on the Serbian fi nancial market. On 31.12.2011 the market value of one share was RSD 392.00, which is a signifi cant fall if compared with the beginning of 2011. The reasons for the fall lie in the eff ects of the economic crisis in the euro zone and the deepening crisis in the Republic of Serbia as the business results of Energoprojekt at the end of 2011 and in the course of the year were in accordance with the plan and in certain important segments they were even better than planned. Consolidated fi nancial reports presented in this Annual Report truly and objectively show the fi nancial state of the Energoprojekt Group in all important material points. All reports are made in compliance with current accounting regulations and policies in the Republic of Serbia. Respecting the principles of transparency, independence, accuracy and completeness, these reports give complete, accurate and sincere details to all interested parties (shareholders, clients, business partners and others). Finally, we would like to thank all our business partners, clients and emplyees in the fi rst place, without whose loyalty, knowledge, ideas and creativity the realization of all mentioned activities and plans would not be possible. Vladimir Milovanović Ivar Bergerg CEO President of the Supervisory Board Annual Report 2011 | Letter to Shareholders 1.1 A Brief History Energoprojekt was founded in 1951 in Belgrade, the capital of former SFRY, as a state owned company to provide design and consultancy services within hydro and thermal power generation and water management (irrigation, land reclamation, water processing etc.). During its long and successful history, Energoprojekt extended its business activities to the fi elds of: power generation, transmission and distribution, urban planning, buildings construction, infrastruc- ture, water management and environmental protection, industry and information technologies. Through its 61 years of business operations, Energoprojekt has evolved into a complex business entity, integrating today 10 internationally active and sophisticated companies in Serbia and over 20 subsid- iaries and joint venture companies worldwide, off ering a wide range of consulting, engineering and contracting services. ENERGOPROJEKT GROUP is presently operating in more then 20 countries around the world, with an average annual turnover of around USD 300 million and annual contracts exceeding USD 500 million. Today ENERGOPROJEKT GROUP is the largest Serbian contractor capable of executing complex projects. Energoprojekt is the only company in the region listed in the renowned American magazine “Engineering News Record“ lists: “The Top 200 International Design Firms” and “The Top 225 International Contractors”. 2.0 Annual Report 2011 | A Brief History ENERGOPROJEKT GROUP manpower of 2,318 rep- resents its basic creative force. The renowned pro- fessionalism of its 1,000 fully qualifi ed, skilled and experienced engineers and other highly specialized experts, enable ENERGO- PROJEKT GROUP to retain its position as one of the most prominent and trusted groups around the world. During six decades, ENERGOPROJEKT GROUP designed and developed complex proj- ects in more than 70 countries worldwide. The following list is a brief summary of relevant projects. Fifty hydro power plants of various types and capacities; Thirty-four thermal power plants (oil, gas or lignite fi red) of various types and capacities (with a unit capacity up to 600 MW); Fifteen industrial power plants; Twenty heating plants and thirty-four district heating systems; Over two hundred power transmission and distribution substations (voltage levels up to 400 kV); Several thousand kilometers of overhead transmission and cable lines (voltage levels up to 400 kV); Over fi fty projects of rural and urban electrifi cation; Fifteen water management plants and basin developments; Forty complex land improvement systems; Over thirty water management and river fl ood control projects; About fi fty municipal and industrial water supply and sewage systems; Multiple infrastructure projects (underground structures, tunnels, roads, runways etc.); Over 200 designed and nearly 70 constructed industrial plants (oil and coal processing, ferrous and non-ferrous metallurgy, metalwork’s, chemical and pharmaceutical industry, building materials, textile and leather, wood and paper, food etc.); One hundred public buildings; Ten conference centers; Several hundreds of housing projects, hospitals, health centers, tourist and sports facilities; Heating, cooling and air-conditioning installations for a/m projects; Interior design and furnishing for a/m projects; Information systems and technologies for a/m projects. Annual Report 2011 | A Brief History 2.1 Energoprojekt Group Structure ENERGOPROJEKT GROUP ENERGOPROJEKT HOLDING Subsidiaries in which Companies in which COMPANIES, REPRESENTATIVE & Energoprojekt Holding Companies from BRANCH OFFICES IN THE WORLD has majority ownership Energoprojekt Group have signifi cant • Encom GmbH ownership Germany • INEC Engineering Co. Ltd. Energoprojekt Energoplast United Kingdom Hidroinženjering • ZAHINOS Ltd. Cyprus • Energoprojekt Representative Offi ce Energoprojekt Energopet Russia Urbanizam i arhitektura • Energoprojekt Representative Offi ce Kazakhstan • Energoprojekt - Montenegro d.o.o. Energoprojekt Enjub Montenegro Entel • Energodata - Montenegro d.o.o. Montenegro • ENHISA S.A. Energoprojekt Peru Industrija • ENLISA S.A. Peru • Energoprojekt Entel Oman L.L.C. Energoprojekt Oman Visokogradnja • Energoprojekt Entel L.L.C. Qatar • Energo Consult L.L.C. Energoprojekt Abu