makedonska berza ad skopje godi[en izve[taj annual

MAKEDONSKA BERZA AD SKOPJE

2002GODI[EN IZVE[TAJ ANNUAL REPORT

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ANNUAL REPORT 2002

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INTRODUCTION

MAIN DEVELOPMENTS IN 2002

TRADING IN SECURITIES

MBI INDEX

MEMBERSHIP

LISTING

INTERNATIONAL COOPERATION

FUTURE OUTLOOK

INDEPENDANT AUDITOR'S REPORT

AUDITOR'S REPORT

BALANCE SHEET

INCOME STATEMENT

STATEMENTS OF CHANGES IN EQUITY

CASH FLOWS STATEMENT

MEMBERS OF THE MACEDONIAN STOCK EXCHANGE

BOARD OF DIRECTORS; MANAGEMENT; USEFUL LINKS

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CONTENTS

MACEDONIAN STOCK EXCHANGE INC. SKOPJE

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In the year 2002 the stock exchange operations were car-

ried out under the circumstances and in the ambience that

were strongly influenced by the efforts for political stabili-

zation in the country and the post-negative effects result-

ing from the deteriorate economic conditions.Although the

inflation rate was low and the exchange rate of the national

currency (the denar) was stable, the whole economic

activity was decelerated, especially the industrial produc-

tion. Negative results were realized in the foreign trade

exchange, while the high unemployment slowed down the

process of market transition reforms. These unfavorable

conditions had negative impact on the Macedonian Stock

Exchange (MSE) operations in the year 2002, resulting in

decline of the trading volume. However, in spite of all this,

an increase of 12% in the value of the Macedonian Stock

Exchange Index (MBI) was recorded, a mandatory listing

for the joint stock companies that fulfill the MSE listing

requirements was introduced, a regional cooperation with

other stock exchanges was intensified and the total oper-

ating profit of the MSE was increased.

In the year 2002 the legal and institutional infrastructure of

the securities market in the Republic of Macedonia was

completed. The concept of complete securities

dematerialization and creating of the Central Securities

Depositary (CSD) became effective. CSD started to func-

tion as centralized institution responsible for ownership

registration, clearing and settlement of the transactions in

all securities issued in the Republic of Macedonia. A

Takeover Law was adopted, thus completing the securities

market legislation, providing rules on takeover procedure

in accordance with the developed markets standards, with

equal treatment and greater protection of minority share-

holders in the takeover process.

The amendment of the Securities Law, that introduced the

mandatory listing for certain number of joint stock compa-

nies in the Republic of Macedonia that fulfill the MSE listing

requirements, was one of the main elements in the finaliza-

tion of the securities market legislation. The supply side on

the Macedonian securities market was enhanced by the

MSE listing of one hundred joint stock companies with the

market capitalization of around 225 million euro's. This act

was also an impetus for the process of further liberalization

of the national economy, creating an environment in which

it is more likely to improve the corporate governance, dis-

closure and transparency of the listed companies and, on

the long run, providing conditions for attracting the foreign

portfolio investments and increasing of the market liquidity.

It was a second consecutive year of the successful func-

tioning of the MSE electronic trading system (BEST), that

increased the safety, reliability, transparency and effi-

ciency of the MSE trading process. In the same time a new

system for on-line distribution of trading data (BESTNET)

was launched. It is a commercial service that provides fol-

lowing of market activity i real time.

In the year 2002 the international cooperation of the MSE

with the other stock exchanges in the region was intensi-

fied. A memorandum for understanding was signed with

the Athens Stock Exchange, marking the process of closer

cooperation between the two exchanges and the securi-

ties market participants of the two countries. An informa-

tional linkage of the MSE and Ljubljana Stock Exchange

trading systems was carried out, enabling direct and simul-

taneous following of the trading activity on both markets by

Macedonian and Slovenian brokers.

In the year 2002, the MSE increased the quality of its ser-

vices both for the investors and for companies, applying

the worldwide standards in the securities industry and wid-

ening its international cooperation,. Providing of the trans-

parent, efficient and liquid securities market place will

remain the MSE strategic goal in the future.

Dr. Evgeni Zografski,

CEO

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INTRODUCTION


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MAIN DEVELOPMENTS IN 2002

The Takeover Law was adopted.

The RegularAnnual Shareholding Meeting was held.

The Memorandum for cooperation with theAthens Stock Exchange was signed.

Within the 6th Anniversary of the Macedonian Stock Exchange the regular MSE Conference wasorganized. The main topic was “Capital Market in the Republic of Macedonia - conditions, problems andprospects”.

The Securities Law was amended, introducing the mandatory listing for all joint stock companies fulfillingthe MSE listing requirements.

FEBRUARY

MARCH

MAY

JUNE

JULY

SEPTEMBER

NOVEMBER

DECEMBER

A separate trading segment was introduced. It provided facility for trading government owned securitiesfor payment both in cash and securities issued by the Republic of Macedonia.

The price limits of +/- 10% for trading in securities listed on the MSE Official Market were introduced.

Listing of the Government bonds - assumed claims of Stopanska banka AD. Skopje (120.153.600EURO).

Listing of the denationalization bonds issued by the Republic of Macedonia in nominal value of 2.500.000EURO (first issue).

MSE started trading in government "convertible certificates" - securities issued for covering the claimsform troubled saving houses (3.500 milion denars).

Arecord monthly trading volume of 286 million denars (around 5 million EURO) was achieved.

Listing of shares of theAlkaliodAD Skopje on the MSE Official Market.

In accordance with the legal obligation for mandatory listing, shares of 78 joint stock companies werelisted on the MSE Official Market.


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MAIN CHARACTERISTICS OF THE MARKET IN 2002

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Main features of the MSE trading results in the year 2002

were as follows:

The total trading volume reached 1,8 billion denars

(30,6 million EURO), which is 2,7% lower than the

volume in the year 2001,

The total number of the transactions reached 13.686

(or about 68 transactions per day), which represents an

increase of 37% in comparison with 2001,

The average daily trading volume (excluding the block

trades and transactions in securities owned by the

government) reached 9,3 million denars (around

153,000 EURO),

The trading on the MSE Unofficial Market represents

the major stake of the MSE total trading volume (58%),

while the MSE Official Market trading volume

participate with 42%,

More transactions are executed on the MSE Official

market (7.752 transactions), compared with the

Unofficial market (5.934 transactions),

A total volume of 1.226.005 shares, government bonds

with the nominal value of 17.921.502 EURO and

government convertible certificates with the nominal

value of 671.731.684 denars was traded through the

MSE,

179 block trades were reported on the MSE with the

trading volume of 2,9 billion denars (47,7 millions

EURO)

Government sold its shares in 138 companies with 160

transactions were executed through the MSE special

segment for trading in securities owned by the

government, and the trading volume of 962 millions

denars (15,7 millions EURO),

The MBI Index rose for 12,7%,

The mandatory listing of all joint stock companies that

fulfill the MSE listing requirements was successfully

carried out, resulting in 78 listed companies on the MSE

at the end of the 2002, with the market capitalization of

around 219 million EURO.

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1) Starting from the year 2002, the MSE reports only the trading volume executed via its electronic trading system (BEST). The block trades and the transactions carried

out on its special government segment are not considered as a part of the MSE regular turnover. However, these transactions have an appropriate statistical tretment by

the MSE. Due to this changes in the statistical metodology, comparison data for the years 2001 and 2002 in this Annual Report are taking into account only the

transactions executed via MSE BEST system.

TRADING IN SECURITIES


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TURNOVER ( denars)

TOTAL

VOLUME (securities)

MBI INDEX

TOTAL NUMBER OF TRANSACTIONS

NUMBER OF TRADING DAYS

AVERAGE DAILY:

NUMBER OF

REPORTED BLOCK TRADES

VALUE OF

REPORTED BLOCK TRADES (denars)

NUMBER OF

TRANSACTIONS ON THE GOVERNMENT SEGMENT

VALUE OF

TRANSACTIONS ON GOVERNMENT SEGMENT (denars)

Shares

Bonds

Other securities

Shares

Bonds (NV in euro's)

Other securities (NV in denars)

Turnover (denars)

Number of transactions

940.846.121 856.997.900 8,9%

980.633.947 708.883.711 27,7%

0 303.577.609 -

1.921.480.068 1.869.459.220 2,7%

829.394 1.226.005 47,8%

22.341.684 17.921.502 19,8%

0 671.731.684

978 1.095 12%

10.019 13.686 36,6%

136 200 47%

14.128.530 9.347.296 33,8%

74 68 8,1%

119 179 50,4%

25.559.343.893 2.912.001.822 88,6%

104 160 53,8%

1.319.287.861 961.955.440 27,1%

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2001 2002 % change

STOCK EXCHANGE INDICATORS

TURNOVER STRUCTURE PER MSE MARKET SEGMENTS IN 2002

OFFICIAL MARKET

UNOFFICIAL MARKET

OTHER SECURITIES

TOTAL

781.952.200 12.823.573 41,8 7.752

783.929.411 12.855.488 41,9 4.827

303.577.609 4.978.135 16,3 1.107

1.869.459.220 30.657.196 100 13.686

Market segmentNumber of

transactions%Turnoverin denars

Turnoverin EURO


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January

February

March

April

May

June

July

August

September

October

November

December

2.374.740 128.609.941 35.638.015 0 166.622.696 2.733.452 14

4.905.231 45.153.164 80.847.935 0 130.906.330 2.147.725 16

3.773.450 39.990.389 59.397.184 0 103.161.023 1.692.549 16

2.239.465 45.793.622 73.934.836 0 121.967.923 2.001.063 18

2.840.184 38.804.756 38.369.513 0 80.014.453 1.312.665 15

1.326.490 85.645.448 49.777.014 0 136.748.952 2.243.172 16

1.564.859 59.828.153 108.496.090 33.885.259 203.774.361 3.342.225 19

1.254.352 51.919.156 31.196.658 62.580.762 146.950.928 2.410.005 17

10.557.238 57.005.742 58.660.144 159.811.654 286.034.778 4.690.336 16

6.541.713 72.691.984 132.819.823 45.779.052 257.832.572 4.226.809 19

15.318.360 48.696.441 42.443.597 197.651 106.656.049 1.747.776 16

20.372.407 34.744.917 72.348.602 1.323.232 128.789.158 2.109.420 18

Total 1Q

Total 2Q

Total 3Q

Total 4 Q

TOTAL

11.053.421 213.753.494 175.883.134 0 400.690.049 6.573.726 46

6.406.139 170.243.826 162.081.363 0 338.731.328 5.556.900 49

13.376.449 168.753.051 198.352.892 256.277.675 636.760.067 10.442.566 52

42.232.480 156.133.342 247.612.022 47.299.935 493.277.779 8.084.005 53

73.068.489 708.883.713 783.929.411 303.577.610 1.869.459.223 30.657.197 200

TURNOVER IN 2002 BY MONTHS

TRADING BY MONTHS IN 2002 /in denars/

Number oftrading days

Month

Officialmarket

Unofficialmarket

Othersecurities

Turnoverin denars

Turnoverin EURO

Shares Bonds Shares

The highest turnover was executed in the third quarter of the year 2002, with extremly high turnover in September and

October. The bonds have dominant share in the MSE turnover with 38%, while the shares listed on the Official Market

have 4% of the total turnover, which is few times bigger increase compared with the previouse year.

300.000.000

250.000.000

200.000.000

150.000.000

100.000.000

50.000.000

0January February March April May June July August September October November December


1 EURO = 61.25 Denars

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1.Agromehanika Skopje 1.610 459 250,7%

2.Makedonija Turist Skopje 1.007 636 58,3%

3.Skopski Pazar Skopje 2.184 1.967 11,0%

4.Makpetrol Skopje 10.293 9.473 8,6%

5.Alkaloid Skopje 1.670 1.608 3,8%

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1.Lotarija Skopje 1.191 1.766 32,5%

2.Replek Skopje 14.308 20.275 29,4%

3.Komerc. B. Skopje (ordinary) 1.415 1.970 28,1%

4.Evropa Skopje 1.143 1.520 24,8%

5.Toplifikacija Skopje 1.453 1.601 9,2%

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TOP GAINERS - SHARES

2002Average

price

2001Average

price

%

2002/2001

ofchange

Num. Share

2002Average

price

2001Average

price

%

2002/2001

ofchange

Num. Share

1. ToplifikacijaSkopje 46.897.199 768.976 64,18 369 706.500

2. AlkaloidSkopje 14.766.701 241.938 20,21 94 2.173.054

3. MakpetrolSkopje 4.378.460 71.708 5,99 29 1.179.898

4. MakedonijaTuristSkopje 3.028.166 49.587 4,14 23 427.124

5. KomercijalnabankaSkopje 1.260.655 20.644 1,73 15 639.245

6. EMOOhrid 529.729 8.676 0,72 3 132.301

7. OhridskabankaOhrid 139.620 2.287 0,19 2 264.109

8. InvestbankaSkopje 119.560 1.960 0,16 6 114.634

Others 1.948.399 31.911 2,68 12 11.119.073

TOTALOFFICIALMARKET 73.068.489 1.197.687 100,00 553 16.755.938

Marketcapitalization(000 denars)Num. Share

Turnover(denars)

Turnover(EURO)

Participation inthe turnover

(%)Number of

transactions

TRADING IN SHARES WITH THE HIGHEST PARTICIPATION IN THE TURNOVER (Official market)



2002

2001

2002

2001

TOP 5 GAINERS

12.000

10.000

8.000

6.000

4.000

2.000

0AlkaloidMakpetrolMakedonija turistAgromehanika Skopski pazar

TOP 5 LOSERS

12.000

10.000

8.000

6.000

4.000

2.000

0Komercijalna banka-ordinary EvropaLotarija Replek Toplifikacija

Volume Turnover

Month (EURO) (denars) Transactions

January

Fabruary

March

April

May

June

July

August

September

October

November

December

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

100.760 4.088.728 16

102.875 3.559.475 10

432.237 15.561.812 50

153.580 5.626.936 28

19.984 738.384 7

14.830 549.550 3

Total 824.266 30.124.886 114

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RMBonds -

"f/xdeposits"

(RM01)

RMdenationalization

bonds

(RMDEN01)

74 55,1 71 65 63,9 17.097.236 678.758 11.131.926

69 52 67 65 59,99 824.266 30.124 493.961

Bond Turnover (8)

TRADING IN BONDS

High Low Open CloseAverage

Price

Volume(NV in

EURO)Turnover

(000 denars)

Volume Turnover

Month (EURO) (denars) Transactions

January

Fabruary

March

April

May

June

July

August

September

October

November

December

2.906.982 128.609.941 872

1.068.481 45.153.164 837

970.939 39.990.389 570

1.130.100 45.793.622 722

997.636 38.804.756 493

2.175.710 85.645.448 808

1.394.122 55.739.424 562

1.380.556 48.359.681 266

1.124.441 41.443.930 365

1.819.386 67.065.048 598

1.237.993 47.958.056 485

890.890 34.195.367 507

Total 17.097.236 678.758.826 7.085

TRADING IN GOVERNMENT BONDS - "F/X DEPOZITS" (RM01) BY MONTHS /in denars/

TRADING IN GOVERNMENT BONDS - DENATIONALIZATION: FIRST ISSUE (RMDEN01) BY MONTHS /in denars/

140.000.000

120.000.000

100.000.000

80.000.000

60.000.000

40.000.000

20.000.000

0

16.000.000

14.000.000

12.000.000

10.000.000

8.000.000

6.000.000

4.000.000

2.000.000

0

January

Febru

ary

Marc

h

April

Ma

y

June

July

August

Septe

mber

Octo

ber

Novem

ber

Decem

ber

January

Febru

ary

Marc

h

April

Ma

y

June

July

August

Septe

mber

Octo

ber

Novem

ber

Decem

ber

The government bond issued for covering "frozen deposits" represents the most liquid security in the year 2002, with 7.085executed transactions and trading volume in nominal value of 17 milion euro's. The average price of these bonds was 64% oftheir nominal value, the lowest price was 55% and the highest price was 74%.



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The increase of the official MSE index (MBI) is one of the

main features of the trading activity in the year 2002 (the

structure of the MBI remained unchainged and it is

consisted of ordinary shares of Alkaloid, Makpetrol,

Toplifikacija, Evropa and Komercijalna banka).

In comparison with its close value at the end of 2001, at the

end of 2002 the MBI rose for 12,7% and reached 1.094

points, which is its highest value during the year. Its

opening value in 2002 was 966 points (08.01.2002) and

during the summer MBI reached its low at 819 points

(26.06.2002).

Within the MBI shares in 2002, the most liquid were shares

of Toplifikacija, reaching the turnover velocity of 6,9%,

followed by the shares of Makpetrol (6,5%) and shares of

Komercijalna banka (4,6%).

The biggest price volatility was recorded with shares of

Alkaliod Skopje, with annual price change in range

between 1.001 and 2.500 denars per share, followed by

shares of Komercijalna banka with range between 1.100

and 2.200 denars per share. The shares of Toplifikacija

had price range between 1.100 and 1.740 per share and

Makpetrol's shares low was reached at 8.500 denars per

share, while its highest price was at 11.500. The two top

gainers in 2002 were shares of Makpetrol andAlkaloid.

MACEDONIAN STOCK EXCHANGE INDEX (MBI)

1.150

1.100

1.050

1.000

950

900

850

800

75008.01 23.01 07.02 25.02 12.03 27.03 11.04 29.04 20.05 04.06 04.07 22.07 06.08 21.08 05.09 24.09 09.10 24.10 11.11 26.11 11.12 26.12

MBI MOVEMENT IN 2002


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1.800

1.700

1.600

1.500

1.400

1.300

1.200

1.100

1.000

2.200

2.000

1.800

1.600

1.400

1.200

1.000

11.500

11.000

10.500

10.000

9.500

9.000

8.500

8.000

08.01

08.01

08.01

08.02

08.02

08.02

08.03

08.03

08.03

08.04

08.04

08.04

08.05

08.05

08.05

08.06

08.06

08.06

08.07

08.07

08.07

08.08

08.08

08.08

08.09

08.09

08.09

08.10

08.10

08.10

08.11

08.11

08.11

08.12

08.12

08.12

Alkaloid AD Skopje

Makpetrol AD Skopje

Toplifikacija AD Skopje

ALK

MPT

TPLF

ordinary shares

ordinary shares

ordinary shares

PRICE MOVEMENTS OF ALKALOID AD SKOPJE IN 2002

PRICE MOVEMENTS OF MAKPETROL AD SKOPJE IN 2002

PRICE MOVEMENTS OF TOPLIFIKACIJA AD SKOPJE IN 2002

Nominal Value 25,56Outstading Shares 1.301.230Market Capitalization (31.12.2002) 2.173.054.100Number of Trading Days 131Volume (denars) 53.681.660Volume (shares) 39.060Number of Transactions 522Turnover Ratio 3,00%Averige Price denars (Jan.2002) 1.197Averige Price denars (Dec.2002) 1.729High denars (2002) 2.500Low denars (2002) 1.001Capital Gains/Loss 44,43%Dividend Return 5,25%Total Return 49,67%P/E 10,72P/B 0,51Current divident yield 3,63%

Nominal Value 511,29Outstading Shares 112.382Market Capitalization (31.12.2002) 1.179.898.618Number of Trading Days 169Volume (denars) 71.453.265Volume (shares) 7.311Number of Transactions 709Turnover Ratio 6,50%Averige Price denars (Jan.2002) 10.229Averige Price denars (Dec.2002) 10.379High denars (2002) 11.500Low denars (2002) 8.500Capital Gains/Loss 1,47%Dividend Return 0,00%Total Return 1,47%P/E 12,61P/B 0,32Current divident yield 0,00%

Nominal Value 100 DEMOutstading Shares 450.000Market Capitalization (31.12.2002) 706.500.000Number of Trading Days 125Volume (denars) 46.897.199Volume (shares) 31.044Number of Transactions 369Turnover Ratio 6,90%Averige Price denars (Jan.2002) 1.477Averige Price denars (Dec.2002) 1.536High denars (2002) 1.740Low denars (2002) 1.100Capital Gains/Loss 4,01%Dividend Return 10,22%Total Return 14,23%P/E 6,46P/B 0,45Current divident yield 9,83%

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2.400

2.200

2.000

1.800

1.600

1.400

1.200

1.000

08.01 08.02 08.03 08.04 08.05 08.06 08.07 08.08 08.09 08.10 08.11 08.12

Komercijalna Banka AD SkopjeKMB ordinary shares

1.500

1.400

1.300

1.200

1.100

1.000

900

800

08.01 08.02 08.03 08.04 08.05 08.06 08.07 08.08 08.09 08.10 08.11 08.12

Evropa AD SkopjeEVRO ordinary shares

PRICE MOVEMENTS OF KOMERCIJALNA BANKA AD SKOPJE IN 2002

PRICE MOVEMENTS OF EVROPA AD SKOPJE IN 2002

Nominal Value 5.000 MKDOutstading Shares 365.283Market Capitalization (31.12.2002) 798.749.450Number of Trading Days 98Volume (denars) 30.321.091Volume (shares) 16.948Number of Transactions 210Turnover Ratio 4,64%Averige Price denars (Jan.2002) 2.056Averige Price denars (Dec.2002) 1.296High denars (2002) 2.200Low denars (2002) 1.100Capital Gains/Loss -36,97%Dividend Return 11,31%Total Return -25,66%P/E 4,58P/B 0,22Current divident yield 17,94%

Nominal Value 51,13Outstading Shares 255.583Market Capitalization (31.12.2002) 346.314.965Number of Trading Days 63Volume (denars) 9.207.438Volume (shares) 7.904Number of Transactions 129Turnover Ratio 3,09%Averige Price denars (Jan.2002) 1.310Averige Price denars (Dec.2002) 1.281High denars (2002) 1.450Low denars (2002) 921Capital Gains/Loss -2,21%Dividend Return 0,00%Total Return -2,21%P/E 282P/B 0,46Current divident yield 0,00%



MEMBERSHIP, LISTING, INTERNATIONAL COOPERATION, FUTURE OUTLOOK

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1 62 81.291 132.424 590.6972 7 4.785 26.797 81.0833 6 13.838 5.253 42.3474 4 2.244 3.309 15.6295 2 2.702 1.393 17.7226 9 21.204 7.836 42.4837 8 11.160 35.874 101.2668 2 519 11.891 12.089

INDUSTRY

TRADE

CONSTRUCTION

TRANSPORT

AGRICULTURE

SERVICES

BANKING

CATERING

TOTAL 100 137.743 224.779 903.320

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In the year 2002, the number of member firms of the

Macedonian Stock Exchange increased for 3 new

members, reaching the total number of 12 MSE members.

Out of these 12 MSE members, 9 are brokerage houses

and 3 are banks. During 2002, three banks became

authorised trading participants - members of the

Macedonian Stock Exchange (Balkanska banka, Eksport-

Import banka and Sileks banka). In the same time due to

the legal forclosure, the membership of SAKSES Brokers

at the MSE ceased.

In accordance with the amendments of the Securities Law,

an obligation for mandatory listing on the MSE Official

Market was introduced for all joint stock companies that

fulfill the requirements determined by the MSE Listing

Rules. The deadline for fulfillment of this legal obligation by

the companies was set within six months after the day of

enacting of these amendment, which was the end of the

year 2002. All joint stock companies in the Republic of

Macedonia with nominal capital bigger than 500.000

euro's, more than 100 shareholders, free float ratio higher

than 30% and audited financial statements for three years,

were legally obliged to submit to the MSE a listing

application until the end of 2002. According to the law, the

obligation for mandatory listing on the MSE is in force for

12 months i.e. until the end of 2003. After this date, joint

stock companies are free to decide whether they will

require delisting from the MSE or will remain on its Official

Market.

In order to fulfill this legal obligation, the MSE undertook a

set of appropriate activities: MSE amended and adjusted

its Listing Rules, simplifying the listing procedure and

manner of preparation of the Listing Prospectus (an

alternative for preparing the short version of the

Prospectus was allowed); it organized a short seminar for

the brokerage houses that act as a listing sponsors; all joint

companies that were subject to this legal obligation were

duly informed about the listing process etc.

As a result of this, in relatively short time span intensified

activities were carried out by all market participants:

companies - potential listing candidates, brokerage

houses - listing sponsors and the MSE. Until the end of

2002, 78 joint stock companies were listed on the MSE

Official Market and additional 22 companies remained to

be listed in 2003 (listing application were submitted to the

MSE). By the end ofApril 2003, on the MSE Official Market

there were 100 joint stock companies, with nominal capital

of 903 million euro's and market capitalization of 225

million euro's.

MEMBERSHIP

LISTING

Num.Industrysector

Number ofcompanies

Number ofshareholders

Marketcapitalization

(000 EURO)

Nominalvalue

(000 EURO)

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15,96%11,92%5,29%3,49%2,34%1,47%0,62%

Industry

Trade

Construction

Transport

Agriculture

Services

Banking

Catering

58,91%

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LISTED COMPANIES (APRIL 30, 2003)

5,29%

11,92%

2,34%1,47%

0,62%3,49%

15,96%

58,91%


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Strenghtening of the cooperation with the other stock

exchanges in the region was one of the most important

priorities of the MSE operations in 2002 .

The Memorandum for cooperation with the Athens Stock

Exchange was signed at the end of March 2002, by which

the exchange of information for both stock markets is

agreed, as well as the further steps of mutual cooperation

in the area of dual listing of companies shares on the two

exchanges.

Within this framework the representatives of the Athens

Stock Exchange made a presentation of the Hellenic

Exchanges SA to the representatives of the MSE

members and large joint stock companies.

In June 2002, a presentation of the Macedonian capital

market was held in Thessaloniki and Athens by the the

Macedonian Stock Exchange, Macedonian Central

Securities Depositary and representatives of three joint

stock companies (Toplifikacija AD Skopje, Alkaloid AD

Skopje and Neocom AD Skopje). The presentation was

organized for the representatives of the Greek investment

funds, banks and brokerage houses, providing them

information about the capital market opportunities in the

Republic of Macedonia.

At the beggining of July, a Business Forum for

Development of the Capital Market was organized in

Skopje. Participants on this Forum were representatives

from the Athens Stock Exchange/Thessaloniki Stock

Exchange Center and Greek brokerage houses and they

were informed about the prospects for investing in projects

in Macedonia via public offering of securities and dual

share listing on both MSE andAthens Stock Exchange

An informational linkage of the MSE and Ljubljana Stock

Exchange trading systems was carried out, enabling direct

and simultaneous following of the trading activity on both

markets by Macedonian and Slovenian brokers.

MSE representatives actively participated on the all

Roundtables on Corporate Governance in South East

Europe organized by the OECD.

The strategic goal of the Macedonian Stock Exchange for

the year 2003 is to provide modern, transparent, efficient

and liquid market for securities. This goal shall be

achieved through:

improvement of the quality of the MSE services;

efficient trading surveillance;

enforcement of the obligations of the listed companies

for diclosure of the price sensitive information and

financial data;

creating development pprospects for listed companies,

by providing possibility for raising new capital on the

MSE and other more developed stock exchanges in the

region;

providing appropriate trading platform for selling the

residual assets owned by the government via public

stock exchange auctions;

more active promotion of the MSE operations and new

listed companies both domestically and abroad;

intensifying the activities aimed for regional conection

among the stock exchanges.

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INTERNATIONAL COOPERATION

FUTURE OUTLOOK


ANNUAL FINANCIAL REPORT 2002

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We have audited

We conducted our audits in accordance with

In our opinion

the accompanying balance sheets of Makedonska berza na dolgorocni hartii od vrednost A.D., Skopje

(further referred to as “the Company”) as of 31 December 2002 and 2001, and the related statements of income, changes in

equity and cash flows for the years then ended. These financial statements are the responsibility of the Company's

management. Our responsibility is to express an opinion on these financial statements based on our audits.

International Standards on Auditing. Those standards require that we plan

and perform the audit to obtain reasonable assurance about whether the financial statements are free of material

misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial

statements.An audit also includes assessing the accounting principles used and significant estimates made by management,

as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our

opinion.

, the financial statements present fairly, in all material respects, the financial position of the Company as of 31

December 2002 and 2001 and the results of its operations, changes in equity and cash flows for the years then ended, in

accordance with InternationalAccounting Standards.

Skopje, March 13, 2003

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TO THE MANAGEMENT OF



INDEPENDENT AUDITOR'S REPORT


Approved by,

Evgeni Zografski Ph.D.

Note 2002 2001

Non-Current Assets

Current Assets

TOTAL ASSETS

Current Liabilities

Net Current Assets

Net Assets

Equity

Fixed Assets 4 8,038 7,836

Deferred tax asset 16 151 -

8,189 7,836

Placements with banks 5 23,055 17,822

Interest receivables and other assets 6 12,345 12,345

Cash and cash equivalents 7 13,503 13,503

48,903 32,978

57,092 40,814

8 6,702 2,175

42,201 30,803

50,390 38,639

Share Capital 9 30,662 30,662

Reserves 4,927 2,771

Retained Earnings 14,801 5,206

Total Equity 50,390 38,639

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At 31 December 2002 and 2001(Expressed in thousands of Denars)

BALANCE SHEETS

Note:

The accompanying

notes of these

financial statements

are available

on the MSE web site:

www.mse.com.mk


Note 2002 2001

Revenue 10 51,203 33,930

Operating Expenses

Fee and Commission Expenses 11 (7,409) (6,373)

Personnel Costs 12 (12,658) (10,052)

Office Expenses 13 (2,246) (2,561)

Advertising and Representative Expenses (3,890) (3,640)

Depreciation Expense (2,141) (1,938)

Loss on Impairment and Uncollectability - (36)

Other Expenses 14 (8,080) (5,824)

14,779 3,506

Net Financial Income 15 2,796 2,642

17,575 6,148

Income Taxes 16 (2,774) (942)

14,801 5,206

Profit from Operations

Profit Before Income Taxes

Net Profit

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Years Ended 31 December 2002 and 2001(Expressed in thousands of Denars)

INCOME STATEMENT



Note:

The accompanying

notes of these


are available


www.mse.com.mk

Share Statutory Retained TotalCapital Reserves Earnings

Share Retained TotalCapital Reserves Earnings

Balance, 1 January 2002 30,662 2,771 5,206 38,639

Profit for the year - - 14, 801 14,801

Transfer (see note 9) - 2,156 (2,156) -

Dividends - - (2,153) (2,153)

Rewards for employees

and members of

Board of Directors - - (897) (897)

Balance, 31 December 2002 30,662 4,927 14,801 50,390

Balance, 1 January 2001 33,033 400 - 33,433

Profit for the year - - 5,206 5,206

Transfer (see note 9) (2,371) 2,371 - -

Balance, 31 December 2001 30,662 2,771 5,206 38,639

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STATEMENTS OF CHANGES IN EQUITY



Note:

The accompanying

notes of these


are available


www.mse.com.mk

Cash flow from operating activities

Profit before taxation 17,575 6,148

Adjustment to reconcile net income to net

cash provided by operating activities

Depreciation charge 2,141 1,938

Provision for loan losses - 36

Capital loss 54 -

(Increase)/decrease in accrued interest and

other receivables (9,598) 4,388

Increase/(decrease) in accrued interest

and other liabilities 3,118 (915)

Income taxes paid (1,516) (975)

Rewards paid to employees and BOD's members (897)

Total adjustments (6,698) 4,472

Net cash provided by operating activities 10,877 10,620

Increase in placements with banks (5,233) 1,178

Purchase of equipment (2,397) (7,124)

Net cash used in investing activities (7,630) (5,946)

Cash flow from financing activities

Dividends paid (2,153) -

Net cash provided by financing activities (2,153) -

1,094 4,674

12,409 7,735

13,503 12,409

2002 2001

Cash flow from investing activities

Net increase in cash

and cash equivalents

Cash and cash

equivalents at 1 January

Cash and cash

equivalents at 31 December

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CASH FLOWS STATEMENT



Note:

The accompanying

notes of these


are available


www.mse.com.mk

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MEMBERS OF THE MACEDONIAN STOCK EXCHANGE

BD

SL

EU

BB

PT

BL

TN

MI

KB

SB

FR

MK

Bro-dil AD

Broker SB AD

KB Broker AD

Makos-Invest Broker AD

MAK Broker AD

Tutunskabroker AD

Balkanska Banka Skopje AD

Fersped Broker AD

Postel Broker AD

Bitola Broker AD

EURObroker AD

Sileks banka AD

address: ul. Partizanski odredi br. 3, blok 11, 1000 Skopje,

phone: ++389 2 3298 851, 3298 852; fax: 3118 670

e-mail: [email protected]












address: Gradski zid blok 10, 1000 Skopje

phone: ++389 2 3295 295, 3295 379, 3295 547, 3295 549; fax: 3295 551

address: kej Dimitar Vlahov br. 4, 1000 Skopje

phone: ++389 2 3218 217, 3218 210, 3218 219, 3218 212, 3218 211; fax: 3218 222

address: ul. Mito Hadzivasilev Jasmin br. 20, 1000 Skopje

phone: ++389 2 3110 290, 3110 280, 3127 462; fax: 3110 290

address: ul. Partizanski odredi br. 3, blok 11, 1000 Skopje

phone: ++389 2 3116 213; fax: 3116 213

address: ul. Dame Gruev br. 14, DTC Paloma Bjanka, 2 kat lokal 10, 1000 Skopje

phone: ++389 2 3133 305, 3133 464; fax: 3133 464, 3133 305

address: ul. Maksim Gorki br. 6, 1000 Skopje

phone: ++389 2 3286 109, 3286 112; fax: 3286 030, 3286 033

address: ul. Veljko Vlahovic br. 11, 1000 Skopje

phone: ++389 2 3219 219, 3219 210, 3219 212; fax: 3219 222, 3219 213

address: ul. Orce Nikolov b.b., 1000 Skopje

phone: ++389 2 3224 300; fax: 3112 862, 3163 054

address: ul. Vasko Karangeleski, Hotel Bitola b.b., 7000 Bitola

phone: ++389 47 258 830; fax: 258 840, 258 810

address: ul. Veljko Vlahovicbr. 1/2/2, 1000 Skopje

phone: ++389 2 3215 198, 3215 199; fax: 3223 397

address: ul. Vasil Glavinov 28/2, 1000 Skopje

phone: ++389 2 3112 297, 3231 410; fax: 3224 844


MANAGEMENT OF THE MSE

BOARD OF DIRECTORS

Ivan Steriev

Milco Cupev

Ms. Jadranka Mrshic, M.A.

Dr. Evgeni Zografski

Zvonko Popovski

Director,

Trading Department

Director,

Legal & PR Department

(KB Broker)

Chairman

CEO

Director,

Listing & Membership Department

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USEFUL LINKS

SECURITIES AND EXCHANGE COMMISSION www.sec.gov.mk

CENTRAL DEPOSITORY OF SECURITIES AD SKOPJE www.cdhv.org.mk

PRIVATIZATION AGENCY www.mpa.org.mk

NATIONAL BANK OF REPUBLIC OF MACEDONIA www.nbrm.gov.mk

MINISTRY OF FINANCE OF REPUBLIC OF MACEDONIA www.fin.gov.mk

--

--

-

M-r Jadranka Mrsic

Gorgi Ignjatov

Kiril Mitrovski

Srgan Krstic

Lidija Trajkovic

Sasha Grujevski

Aleksandar Petreski

Kole Smilevski

Mira Sekutkovska

- Chairman KB Broker AD Skopje

Tutunskabroker AD Skopje

Makos-Investbroker AD Skopje

Bro-dil AD Skopje

Fersped Broker AD Skopje

SB Broker AD Skopje

MAK Broker AD Skopje

Postel Broker AD Skopje

Balkanska banka AD Skopje

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"Mito Hadzivasilev" 20

p.o. box 852

1000 Skopje, Republic of Macedonia

Telephone: +389 2 3122 055

fax.: +389 2 3122 069


web site: www.mse.com.mk

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Copyright:

MACEDONIAN

STOCK EXCHANGE

INC. SKOPJE®

design & realisation:

photo:

Infopress, Skopje,

center for total

graphic projects

Zoran Micevski

makedonska berza ad skopje godi[en izve[taj annual

Documents