SALES PROSPECTUS

TIGAR INCON

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TIGAR INCON

SALES PROSPECTUS

TIGAR INCON

1996 - founded Tigar Incon

2007 - integration with the Business unit Construction which deals in works in construction

KEY YEARS

TIGAR INCON d.o.o. consists of two basic units:

Sector for engineering and consulting

Business Unit Construction

Especially developed is the segment for carpentry services, fitting offices and furniture making.

The company owns sawmill for cutting and woodwork, with the capacity of 30m3 a day.

Due to the highly unfavourable situation in the market the sector forengineering and consulting is inactive at the present moment, but it has rich reference of drafted project, according to which many objects in Pirot district were constructed. Tigar Incon has ISO standard, as well as a person responsible for safety and health at work, who enables it to meet the strictest conditions.

Key markets are: Tigar Tyres, Tigar a.d. local market.

Expected income level of the company for 2016 is about 90 milion dinars.

TIGAR INCON – TODAY

Today Tigar Incon represents a business unit whose main activity is performance of the following types of work:

•constructionandcraft,

•Installation

•Carpentry

•Constructionofbuildings

•Maintenanceoffacilities

•Installationofindustrialandpolyurethaneself-leveling floors

•Woodprocessing

Teams of employees in Tigar Incon are able to meet the majority of requests of one business system,asconfirmedsofar.

Tigar Corporation has been present in the rubber business for more than eight decades. Parallel with the growth and expansion of the production of rubber products grew the need for numerous services which enabled such expansion of the rubber business in Pirot. In time, organizational units which were engaged in food production for workers, transport organization and logistics, as well as in construction business, singled out into independent entities which focused their business towards external users.

Today all of them are sustainable in financial terms with reference market share.

After numerous studies conducted in the previous years it was decided that the corporation should focus on the basic activity, and that it should gradually leave the other (service) activities.

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TIGAR INCON

SALES PROSPECTUS

ORGANIZATIONAL CHART

For performing these works, at its disposal Tigar Incon has adequate workforce and equipment.

Structure of workforce by groups of jobs:

•Constructionworkers17

•Locksmithsandtinsmiths10

•Painters3

•Carpenters5

•Plumbers3

•Electricians2

•Maintenanceandservices8

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TIGAR INCON

SALES PROSPECTUS

1. Working machines – concrete machine for horizontal surfaces ‘coperhead’ laser – guided by laser trimble 300 – set of machines intended for surface preparation of industrial floors from polyurethane by blasting and grinding concrete – concrete mixers v=250 l 4 items, concrete mixers v=150 l 4 items – helicopters for installation additive floor ‘wet-dry’ 4 items, sanding machine for dry components of the additive floor, joint cutter machine ‘cedima’ – pervibrators 2 items – screeds that run on petrol, four – strokes ‘honda’ 2.2 kw Honda – plastering machine ‘turbisol’ – scissor working platform ‘upright’ – tubular scaffolding 2000 m2 – steel buttress 1500 items – cranes light t=200 kg. 2 items – working platform haulote

2. Woodworking machines - fully equipped line for wood furniture and interiors – line for massif processing - automatic line for processing logs with a capacity of sorting line with the capacity of 10 000 m³/a year – band saw ø 1400 – driers 200 m³ in turns – steam chambers 200 m² in turns

3. Machines for maintaining the round – sweeping machine with high pressure and vacuum ‘miniscarab’ – tractor- mower ‘john deer’ – self-propelled mowers 4 items, brushcutters ‘stihl’ 4 items.

EQUIPMENT

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TIGAR INCON

SALES PROSPECTUS

4. Means of transport – truck “zastava” 5t – truck “isuzu” 3,5 t - pick-up škoda 500 kg – truck tipper “mercedes” combined machine “terex 820” 5. Locksmith shop with complete equipment and tools for processing metal 6. Tinsmith shop with complete equipment and tools for processing sheet metal 7. Complete electro workshop 8. Complete plumbing workshop equipped for making trunk lines 9. Complete reinforcement plant 10. Complete painting and dying workshop *** Tigar Incon has the latest equipment for laying industrial and polyurethane self-leveling floors.

1. TIGAR TYRES – Administration , P 2000 m²

2. TIGAR TYRES – Annex for storing semi-finished products, P 4120 m²

3. TIGAR AD – Factory Tigar Footwear, P 20 000 m²

4. TIGAR AD – Factory Tigar Technical Rubber Goods, P 5700 m²

5. TIGAR AD - Plant for manufacturing products from recycled rubber, P

2400 m²

6. HE PIROT - Arrangement and interior design, P 450 m²

7. OZ DUNAV – Arrangement and interior design, P 500 m²

8. PC TOPLANA, Pirot – Boiler room and bund Senjak

9. MUNICIPALITY PIROT – Reconstruction of the Youth Stadium Pirot , P

3000 m²

10. MUNICIPALITY PIROT – Reconstruction of school yard of primary school

”Vuk Karadžić”, P 2500 m²

11. MUNICIPALITY PIROT – SPORTS CENTRE – pitch field and a playground

in the residential area Prčevac P 1500 m²

REFERENCES

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TIGAR INCON

SALES PROSPECTUS

SWOT ANALYSIS

The period of large investments in Tigar Tyres and Tigar a.d. is finished, but that certainly does not mean that there will be no engagements in the next period, when it comes to construction works and craftsmanship and maintenance. The aim of Tigar Incon is to highlight its comparable advantages among the fierce competition and to strengthen those segments of its services where largest jobs and good references are expected on the long – term. Certainly we see there construction and one segment of craft works, whereas in the part of polyurethane floors market position should be strengthened so that experience, equipment and staff become even more prominent.

Tigar Incon used to be the leading construction company which has vast experience in all kinds of works (construction, craftsmanship, laying of industrial floors…) The unenviable situation of the complete corporation induced weaker competitive position of Incon. It is possible to regain that position in the next period, but certainly not in every segment because in some the competition predominates. This includes locksmith works as well as painting works. One of the models for further strengthening could be connecting with similar companies in mutually complementary programs so as to be able to meet the greater demands of investors.

Although number of people and structure of equipment correspond to the projected income in the coming period, it is a fact that there must come about staff rejuvenation as well as gradual investment in equipment so that the company could be flexible and efficient enough in comparison with stricter requirements in the market (both Tigar Tyres and investments implemented through public procurement).

Laying industrial floors – PU floors 1. TIGAR FOOTWEAR, P 6000m2

2. TIGAR TYRES, P 2500m2

3. JUGPROM, Leskovac – cold storage

4. TRGOMEN, Kraljevo, P 1400m2

5. PHILIP MORISS, Niš, P 800 m2

6. LUKOVSKA SPA, P m2

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TIGAR INCON

SALES PROSPECTUS

REVIEW OF FINANCIAL INDICATORS

Pursuant to the valid Prepackaged Plan of Reorganization Tigar a.d. Pirot as of 1.6.2016 was placed mortgage over the following objects which is the property of Tigar Incon: warehouse object no.9 in Pirot at k.p.no.3620/1 LN 8370 in favor of Societe Generale Bank and Postal Savings Bank, as well pledge with Business Registers Agency Zl.no.16102/2015 over fixed assets and equipment, according to the Specification as of 23.06.2015 in favor of Societe Generale Bank. In favor of Tax Administration, in order to secure tax and contributions payment, a mortgage was placed over the objects: no.4 (eaves), 6 (locksmith and carpentry workshop), 7 (warehouse for tools of technical goods), 8 (office and wardrobe of Tigar Incon), 18 (drier for the build), 42 (sawmill), 43 (sharpening workshop) and 49 (sawdust silo) at the location Tigar III at 197, Nikole Pasica in Pirot, at k.p.no.3620/1 LN 8370.

Information on pledges and mortgages on movables

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