EP BIH

• Generation, distribution & supply of electricity

• Established in 1946

• Share Capital 1.144 billion EUR (90 % state & 10 % private share)

• Operates with 2 TPPs, 3 HPPs & 8 small HPPs

• The biggest company in B&H

Company profile

TPP Tuzla

• 90% state • 10% private

Generation Distribution & Supply

TPP Kakanj

HPP on Neretva

ED Bihac

ED Tuzla

ED Zenica

ED Sarajevo

ED Mostar

Company structure

2012Current facts

Description Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Shareholders capital 1,144 1,144 1,144 mil. €

Operational revenues 454.0 467.1 431.3 mil. €

Operational expenditures 378.3 397.1 369.3 mil. €

EBITDA 75.7 70.0 62.0 mil. €

Profit/Loss 3.6 0.8 - 7.4 mil. €

Production 6,509 7,295 7,181 GWh

Installed capacity 1,682 1,682 1,682 MW

Number of customers 715.411 707.301 695.833

Number of employees 4.873 4.878 4.934

Company’s key indicators

Assets Equity & Liabilities0

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400

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1600

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2000

Short term liabilities

Long term liabilities

Equity

Current assets

Fixed assets

Balance Sheet 2012

(€ million)

*excluding coal mines

Financial results 2012(€ million)

Revenues Costs Depreciation Profit0

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500Fees

Coal transport

Other costs

Maintenance

Transmission

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Material for gen.

other revenues

financing

services

heat

electricity

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2007 20082009 2010 2011 2012

ThermalThermalThermalThermalThermal

Thermal

Hydro Thermal

Production indicators

90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 `11 `120

10002000300040005000600070008000 GWh

GWh 2011 2012 %

Production 7,295 6,509 -10.8%

Thermal 6,138 5,368 -12.5%

Hydro 1,157 1,141 -1.4%

Hydro % 16% 17%

End users (Gross)

4,820 4,900 +1.6%

Balance 2,475 2,129 -14%

Reduced production in 2012:due to reconstruction of Unit 6 in TPP Tuzla

Production and coal supply

'99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 `11 `120

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7000 000 t

Coal purchase in 2012:6,232 thousand tons+0,6% compared to 2011

• Thermal power generation is dominant and is participating in total production between 70 – 80%

• Hydro power generation is inferior and is participating in total production between 20 – 30%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

2,940 3,488 3,409 4,087 4,306 4,606 4,622 4,985 5,139 5,730 5,657 5,362 6,192 6,232

• EPBiH is 100% owner of seven coal mines within FBiH

• More than 85% of the total coal is produced within own coal mines

• Price of coal is defined by the FBiH Government (90% owner of EPBiH)

Average electricity market sales price

Year 2006 2007 2008 2009 2010 2011 2012Average price

(€/MWh) 35.4 47.0 56.3 64.9 44.9 51.1 53.3

2006 2007 2008 2009 2010 2011 20120

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70

Average price (€/MWh)

NEW CAPITAL INVESTMENTS IN EPBiH

Background of the opportunity

Bosnia and Herzegovina is the country with the highest energy potential in Southeastern Europe:

• Bosnia and Herzegovina is a net exporter of electric power• 8.1% of Bosnia’s total exports is related to electric power• Total currently installed and operating capacity - 3.400 MW• Energy production capacities are not fully exploited.• The total estimated hydro potential in BIH is estimated of 23,395 GWh/per year (of which only approx. 25% are being utilized)• BIH has significant reserves of coal (3.7 billion tons of lignite and 2.2 billion tons of brown coal)

which allow development of new thermal power plants.• The Government of the Federation of BIH announced a series of projects in the energy sector in

the total value of € 5 billion as a major building block of the economic strategy of the country

Investment environment

• Reliable energy supplier in

the country and region;

• Meet the requirements of EU

& increase of generation

from renewable energy

sources;

• Massive investments needed

in energy sector

• Increasing demand for

energy

• Volatility in energy prices

DRIVERS

What will we do?

> Uptake new technologies

> Significantly reduce CO2 emissions

> Increase the efficiency of existing thermal power plants (replacement project)

> Diversify the energy portfolio and increase the reliability

> Improve distribution network

> Jobs creation• Frequent outages

• Resource endowment

• Technical Capacity

Projects are based on Strategic plan and program of development of energy sector inFederation of B&H and Government decisions

• WF Podveležje • WF Vlašić

Thermal PP

• TPP Tuzla, Unit 7 • TPP Kakanj, Unit 8• TPP Bugojno, Unit 1• CCGT Kakanj

Renewable Energy PP - Hydro

• HPP Vranduk• HPP Janjići• HPP Ustikolina• HPP Čaplje• HPP Kruševo & HPP Zeleni Vir• HPP Kovanići• HPP Vrhpolje• SHPP on Neretvica river

List of the planned projects

Renewable Energy PP - Wind

• WF Podveležje • WF Vlašić

Investment Plan 2013 - 2015

20132014

2015

0

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49

208

285

9

160213

Capital investments/External sources (in EUR millions)

Capital investments External sources

Project description TPP Kakanj - summaryBasic project data

Items Values

Installed power 300 MW

Production (based on 6.500 hours of production) 1.755 GWh

Efficiency in condensing mode 39%

Efficiency in co generation mode‐ > 70%

Coal consumption 1,3 million tons/year

Emission SO2 < 200 mg/Nm3

Emission Nox < 200 mg/Nm3

Emission Dust < 20 mg/Nm3Total Investment

Items Values

Estimated total investment costs

€ 529 millionProject development timelines

Items Values

Call for expresesion for interest June 2013

Selection of project partner September 2013

Closing of partnership aggreement February 2014

Project implementation May 2014

Issuance of the construction permit September 2014

Start of civil works for the main power building (MPB) March 2015

Start of commercial production September 2019

Project description TPP Kakanj - Heating pipelineBasic project data

Items Values

Lenght from Kakanj to Zenica 33 km

Diametar 700 mm

Estimated total investment cost € 61,6 milion

EPBiH interest

• Efficiency increasing of existing and future units• Assure market for heating energy in long term period• Revenue increasing• Meet the requirements of EU• Reducing of emissions

Local community interest

• Stable heating sistem• Less polution• Energy efficiency• Job creation

Project description HPP Ustikolina

Overview

• The HPP «Ustikolina» is located on the Drina river• 4 HPP already exist on river Drina• Connection to a grid is secured.

Positive & Enviromental impacts

• Independent energy production source for the region• Waterflow control system improvement • Water supply system improvment • Development of fish farms• Job creation

Project description HPP Ustikolina - summary

Basic project data

Items Values

Installed power 60 MW

Annual production 247 GWh

Total Investment

Items Values

Estimated total investment costs € 123 million

Project development timelines

Items Values

Preliminary design May 2013

Location permit December 2013

Closing of financial structure March 2014

Issuance of the construction permit December 2014

EPC tender March 2015

Start of civil works for the main power building (MPB) September2015

Start of commercial production March 2019

Elvedin Grabovica - General manager e-mail: e.grabovica@elektroprivreda.ba

Edin Mujagic - Executive Director for Economic Affairse-mail: ed.mujagic@elektroprivreda.ba

Tel: +387 33 751 005Fax: +387 33 751 003

Amil Kamenica – Executive Director for Capital Investmente-mail: am.kamenica@elektroprivreda.ba