Jelena ovljanskiBiljana Guti

Biljana SimonoviMarija Komatina

Ljubomir PetruljeskovDragan Plav i

Corporate Business Inteligence April 2006.

Jelena ovljanskiBiljana Guti

Biljana SimonoviMarija Komatina

Ljubomir PetruljeskovDragan Plav i

Corporate Business Inteligence April 2006.

Delta -Maxi 2000. 12.December opened first Maxi retail unit

2001. Opened 4 new Maxi stores

2002. 11 new Maxi stores

2003. 30 new Maxi stores. Change of sales concept-tranfered to concept of supermarket

2004. 8 new Maxi supermarkets

2005. 7 new Maxi supermarkets. C Markets , Tempo and Pekabeta markets became

members of Delta group.

2006. Until 20.04.2006. opened 5 new Maxi supermarkets

Delta -Maxi 2000. 12.December opened first Maxi retail unit

2001. Opened 4 new Maxi stores

2002. 11 new Maxi stores

2003. 30 new Maxi stores. Change of sales concept-tranfered to concept of supermarket

2004. 8 new Maxi supermarkets

2005. 7 new Maxi supermarkets. C Markets , Tempo and Pekabeta markets became

members of Delta group.

2006. Until 20.04.2006. opened 5 new Maxi supermarkets

Merkator1949. Fondation of the Zivela Ljubljana1953.-1990.

The company is expanding its organizational and spatial activities.The sistems basic activities, wholesale manufacturing, farming and services

1990. Capital conections with affilliate companies reprezent the start of a group oriented organization and the afirmation of Mercator dd

1993. Start of privatization process with the public offer of shares

1995. The end of privatization of the Mercator business sistem, Slovenia s largest public joint-stock company

1998. Market share was 20.1 % and the number of employes was 8375

1999. Mercator expansion and modernization of the retail network

2000. Market share was 36.8 % and the number of employes was 13.208

2000. New Merkator centers were opened in Croation and Bosnia

2002. New Merkator center was opened in Serbia2004. Merkator allready owned 1333 retail units

Merkator1949. Fondation of the Zivela Ljubljana1953.-1990.

The company is expanding its organizational and spatial activities.The sistems basic activities, wholesale manufacturing, farming and services

1990. Capital conections with affilliate companies reprezent the start of a group oriented organization and the afirmation of Mercator dd

1993. Start of privatization process with the public offer of shares

1995. The end of privatization of the Mercator business sistem, Slovenia s largest public joint-stock company

1998. Market share was 20.1 % and the number of employes was 8375

1999. Mercator expansion and modernization of the retail network

2000. Market share was 36.8 % and the number of employes was 13.208

2000. New Merkator centers were opened in Croation and Bosnia

2002. New Merkator center was opened in Serbia2004. Merkator allready owned 1333 retail units

By the year 2004 an extremely important period of the Mercator Group development has come to an end. From the small local retailer Mercator has become the biggest trading chain in Slovenia in spite of ever stiffening competition and has managed to set up significant turning points in the Slovene trade development. Today the Slovene trade is fully comparable with the developed European market. For the last seven years Mercator has carried out 23 takeovers mostly the trading companies in Slovenia. These takeovers and retail network expansion by building new Mercator Centres and Shopping Centres during the past years have resulted in very high growth rates of income, profit, market share and number of employees. Further growth and expansion of Mercator Group will be influenced by the factors and trends prevailing also in the development of trade on the developed market of the European Union. The growth and widening of Mercator Group will be more moderate in the planned period if compared with the previous years, the development will be directed from mere growth also to better efficiency. In the period to come Mercator will be strengthening the identity of the best trading company on all the markets of its operations.

By the year 2004 an extremely important period of the Mercator Group development has come to an end. From the small local retailer Mercator has become the biggest trading chain in Slovenia in spite of ever stiffening competition and has managed to set up significant turning points in the Slovene trade development. Today the Slovene trade is fully comparable with the developed European market. For the last seven years Mercator has carried out 23 takeovers mostly the trading companies in Slovenia. These takeovers and retail network expansion by building new Mercator Centres and Shopping Centres during the past years have resulted in very high growth rates of income, profit, market share and number of employees. Further growth and expansion of Mercator Group will be influenced by the factors and trends prevailing also in the development of trade on the developed market of the European Union. The growth and widening of Mercator Group will be more moderate in the planned period if compared with the previous years, the development will be directed from mere growth also to better efficiency. In the period to come Mercator will be strengthening the identity of the best trading company on all the markets of its operations.

Maxi is the retail chain operating within the company of Delta M, member of Delta Holding. The first Maxi opened in year 2000. and soon became the synonym for trade caring for its consumers, following world trends and introducing innovations in all segments of its business. It has become the Place for family shopping . Maxi has extraordinarly quickly and successfully

positioned itself on the retail chain-market, since it offered what others lack. Two vital segments that are differentiating Maxi from other traders are Maxi green market and Maxi bakery. The unique selling offer is also evident at the Maxi e-store underlining the fact that it is the only supermarket providing e-comerce business. Maxi also attracts various clientel by favourable prices.

Maxi is the retail chain operating within the company of Delta M, member of Delta Holding. The first Maxi opened in year 2000. and soon became the synonym for trade caring for its consumers, following world trends and introducing innovations in all segments of its business. It has become the Place for family shopping . Maxi has extraordinarly quickly and successfully

positioned itself on the retail chain-market, since it offered what others lack. Two vital segments that are differentiating Maxi from other traders are Maxi green market and Maxi bakery. The unique selling offer is also evident at the Maxi e-store underlining the fact that it is the only supermarket providing e-comerce business. Maxi also attracts various clientel by favourable prices.

Company organisation chart Company organisation chart

Total sales of Delta - MaxiTotal sales of Delta - Maxi

Total sales of MerkatorTotal sales of Merkator

improving competitiveness of offer and retailnetwork development.strategic connectionspurchases of attractive locations, utilize positive synergies with market programmesmeasures to streamline the costs and increase the productivity measures to increase the return on invested capital

search for new locations

monitoring the trends in retail and aplicatons of the same

developing the four concepts of retail: supermarkets, corner shops, cash&carry and hypermarkets

ActivitiesActivities

the leading retiler in Slovenia. the leading retailer on the neighbouring markets penetrating other markets in Europe

development of non-market pogrammes

profitable business operations

spreding the retail network to the whole Serbia and Montenegro

in next two years covering tha neighboring countries: Macedonia, Slovenia, Bulgaria, Rumenia, Albania, Croatia.

StrategyStrategy

benefits for CUSTOMERS benefits for SUPPLIERS benefits for OWNERS benefits for EMPLOYEES benefits for BROADER ENVIRONMENT

constantly monitoring and fulfilling the wishes of all consumers

making the chain of Maxi supermarkets the leading retail chain in the Balkans.

Securing high level of service, the lowest prices, extension of product portfolio and transfer of the most modern world trends in retailing.

Mission/Vision

Mission/Vision

MerkatorMerkatorDelta - MaxiDelta - Maxi

MaxiMaxi MercatorMercator

2005 sales (mil)2005 sales (mil) $860$860 $1767$1767

1-year sales growth1-year sales growth 8,00%8,00% 12,00%12,00%

2005 employees2005 employees 36503650 1500015000

1 year employee growth1 year employee growth 9,00%9,00% 7,00%7,00%

Macedonia1 hipermarket

Macedonia1 hipermarket

Serbia& Montenegro

2 hipermarkets

Serbia& Montenegro

2 hipermarkets

Croatia12

hipermarkets

Croatia12

hipermarkets

Slovenia17 hipermarkets

Slovenia17 hipermarkets

Bosnia & Herzegovina

2 hipermarkets

Bosnia & Herzegovina

2 hipermarkets

Key strategic goals of the Mercator Group until the year 2008Customer satisfaction and new customers attraction Full introduction of Category Management process Best employees striving for customer satisfactionIncrease of business efficiency and generation of greater value for shareholders Corporate social and environmental responsibility

Key strategic goals of the Mercator Group in numbers:MARKET SHARE UNTIL THE YEAR 2008Slovenia: 37 %Croatia: 10 %Serbia and Montenegro: 5 %Bosnia and Herzegovina: 5 %

Key strategic goals of the Mercator Group until the year 2008Customer satisfaction and new customers attraction Full introduction of Category Management process Best employees striving for customer satisfactionIncrease of business efficiency and generation of greater value for shareholders Corporate social and environmental responsibility

Key strategic goals of the Mercator Group in numbers:MARKET SHARE UNTIL THE YEAR 2008Slovenia: 37 %Croatia: 10 %Serbia and Montenegro: 5 %Bosnia and Herzegovina: 5 %

Market share by the end of 2008

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

45,0

1997 1998 1999 2000 2001 2002 2003 Est.

2004

Est.

2008S

love

nia

(in

%)

0,0

5,0

10,0

15,0

20,0

New

mar

kets

(in

%)

Slovenia croatia Serbia and Monte NegroBiH*

Strategic goals:increasing market share to 85%

customer satisfaction

further development of food production

aquisition of Mercator

Market share projecton

By aquisiting Mercator getting the share on the following markets:

Slovenia 37%

Croatia 10%

Bosnia&Herzegovina 5%

Strategic goals:increasing market share to 85%

customer satisfaction

further development of food production

aquisition of Mercator

Market share projecton

By aquisiting Mercator getting the share on the following markets:

Slovenia 37%

Croatia 10%

Bosnia&Herzegovina 5%

Delta-MaxiDelta-Maxi MercatorMercator

SloveniaSlovenia planningplanning

CroatiaCroatia planningplanning

Bosnia&HerzegovinaBosnia&Herzegovina

Serbia&MontenegroSerbia&Montenegro

MacedoniaMacedonia planningplanning

BulgariaBulgaria planningplanning planningplanning

RomaniaRomania planningplanning planningplanning

AlbaniaAlbania planningplanning planningplanning

HungaryHungary planningplanning planningplanning

ThreatsToo large investments

New competition

ThreatsToo large investments

New competition

OpportunitiesDeveloping hipermarkets

Self food production

New markets in South East Europe

E-commerce

OpportunitiesDeveloping hipermarkets

Self food production

New markets in South East Europe

E-commerce

WeaknessesUndeveloped sales network in foreign markets

Lack of international experience

No hipermarket development

WeaknessesUndeveloped sales network in foreign markets

Lack of international experience

No hipermarket development

StrengthsLow prices

Home market strong position

Technological inovations

Has its own food production

StrengthsLow prices

Home market strong position

Technological inovations

Has its own food production

With further development of food self production they can continue with low price policy With aggressive marketing approach they can make in near future recognizable brandMaximize financial power of Delta holdingTransforming large number of supermarkets into hypermarkets Taking advantage of government support to strengthen position on domestic market

With further development of food self production they can continue with low price policy With aggressive marketing approach they can make in near future recognizable brandMaximize financial power of Delta holdingTransforming large number of supermarkets into hypermarkets Taking advantage of government support to strengthen position on domestic market

ThreatsOvercoming competition

Too complicated to manage

Too fast spreding over new markets

ThreatsOvercoming competition

Too complicated to manage

Too fast spreding over new markets

OpportunitiesNew markets in South East Europe

Diversification of products

e- commerce

OpportunitiesNew markets in South East Europe

Diversification of products

e- commerce

WeaknessesHigh prices

No self production of food products

WeaknessesHigh prices

No self production of food products

StrengthsInternational experience

Strong retail network

Strong domestic presence

Recognisible brand

StrengthsInternational experience

Strong retail network

Strong domestic presence

Recognisible brand

Taking advantage of recognizable brand Taking advantage of recognizable brand

Carefully entering in new marketsCarefully entering in new markets

Decreasing prices through self productionDecreasing prices through self production

Both companies share the same problem. That is overcoming

competitors from West Europe such as Cora (France),Metro

(Germany),Vero (Greece),Tesco (England) and one of the

biggest domestic hypermarket chain Rodic MB. Since Delta-

Maxi was the first who recognize this problem they have taken

the initiative and started the process of taking over Mercator

and in this way they will own the major position on regional

market.

Both companies share the same problem. That is overcoming

competitors from West Europe such as Cora (France),Metro

(Germany),Vero (Greece),Tesco (England) and one of the

biggest domestic hypermarket chain Rodic MB. Since Delta-

Maxi was the first who recognize this problem they have taken

the initiative and started the process of taking over Mercator

and in this way they will own the major position on regional

market.

Today Delta-Maxi together with new members of Delta Holding ( C Market, Tempo, Pekabeta) owns 80% of Serbian market. In this way Delta-Maxi became the bigest treath to Mercators projecton plans to conqure the South Eastern market.

Thanks to financial power of Delta Holding, Delta-Maxi announced its offer to buy more than 50% Mercators stocks. In this way Delta-Maxi shall become the bigest retail sell servise in South East Europe.

Today Delta-Maxi together with new members of Delta Holding ( C Market, Tempo, Pekabeta) owns 80% of Serbian market. In this way Delta-Maxi became the bigest treath to Mercators projecton plans to conqure the South Eastern market.

Thanks to financial power of Delta Holding, Delta-Maxi announced its offer to buy more than 50% Mercators stocks. In this way Delta-Maxi shall become the bigest retail sell servise in South East Europe.

1. www.maxi.co.yu2. www.delta.co.yu3. Delta Holding managament4. internet publications5. www.mercator.sl

1. www.maxi.co.yu2. www.delta.co.yu3. Delta Holding managament4. internet publications5. www.mercator.sl