SHORT PROFILE OF THE COMPANY
FABRIKA DUHANA MOSTAR D.D. MOSTAR
TOBACCO FACTORY MOSTAR
 Basic information
Name of the
company:
Address:
Legal status:
Subject of sale:
Status of remaining
shares:
Activity:
Total income:
Number of
employees:
Note:
Foundation year:
Web site:
Fabrika duhana Mostar d.d. Mostar
Tobacco Factory Mostar
M. Tita 237, Mostar, Bosnia & Herzegovina
Joint Stock Company
67 % of the total company capital
33 % is a private capital
Production of tobacco products
4,758,607 KM (2005)
2,927,923 KM (2006)
1,898,401 KM (2007)
318,374 KM (2008)
(1 Euro =1.95583 KM)
122 (June 2008)
Since 2009 the Company does not record in its books
the business changes nor it prepares the annual
financial statements
1880
www.fdm.ba
Tobacco Factory Mostar in Mostar. is one of the oldest companies in Bosnia
and Herzegovina. It had been established in 1880, when under the state
control, development of the tobacco industry in Bosnia and Herzegovina had
begun. The area of Herzegovina has ideal climatic conditions and long
tradition in high-quality tobacco brand growing.

Location
Tobacco Factory Mostar is located in the area of 23,704 m2 situated in the
southern, industrial, zone of the City of Mostar, near arterial road SarajevoPloče. The Factory is 60 km far from the Adriatic Port Ploče in the Republic of
Croatia and 130 km from Sarajevo, the capital of Bosnia and Herzegovina.
Good transport connections (airport. railway and road), make the transport
swift and simple.
 Income and expenditures
Table 1.1 – Total income and total expenditures for 2005. 2006, 2007 &
2008 (in KM)
Year
2005
2006
2007
2008
Total income
4,758,607
2,927,923
1,898,401
318,374
Total
expenditures
7,704,993
5,529,098
6,467,849
2,362,802
Loss
2,946,386
2,601,175
4,569,448
2,044,428
During the period from 1997 to 2000, the Company had positive performance
results and gained a substantial profit. Since 2001 the Company is making
losses.
Since 2009 the Company has not recorded in its books the business changes
nor has it prepared the annual financial statements
 Real-Estate
Facilities with total surface of 10,534 m2 (production halls and other premises)
are owned by Tobacco Factory Mostar The facilities are constructed on the
large surface of 23,704 m2 for which Tobacco Factory Mostar has perpetual
right to use.
 Workers
Tobacco Factory Mostar employs 122 workers in total (status as of June.
2008).
 Ownership Structure
Total basic capital of the company amounts KM.22,137,512.00, as determined
by the Decision of the Agency for Privatization in the Herzegovina-Neretva
Canton. Approving the Privatization Program and Opening Balance Sheet as
of June 30, 2000.
Through the method of Public Offering of Shares, 12.6186% of the capital was
already privatized, and 20.3814% of the capital is the private capital owned by
former and/or current employees. The Agency for Privatization in the
Herzegovina-Neretva Canton has issued the Decision on approval for
registration of the completed privatization.
The Assembly of Shareholders of the Tobacco Factory Mostar has passed the
Decision on decrease of the basic capital to cover the loss in 2000, 2001 and
2002. The FBiH Commission for Securities had issued on September 9, 2003
the Decision on approval to decrease the basic capital, therefore after the said
decrease the basic capital amounted KM 19,038,205 divided on 221,375
shares with nominal value of KM 86.00 per share.
The Assembly of Shareholders of Tobacco Factory Mostar has passed a
Decision on decrease of the basic capital to cover the loss in 2003, No. SD4003-03-jš, dated June 30, 2005, approved by Decision of the FBiH
Commission for Securities No.03/32-19-371/05 dated September 29, 2005,
therefore after the said decrease the basic capital amounted KM 15,841,595
divided on 221,375 shares with nominal value of KM 71.56 per share.
The Assembly of Shareholders of Tobacco Factory Mostar has passed a
Decision on decrease of the basic capital to cover the loss during 2004,
No.SD-342/5-06-jš, dated June 29, 2006, approved by Decision of the FBiH
Commission for Securities No.03/1-19-402/06 dated August 24, 2006,
therefore after the said decrease the basic capital amounted KM
13,322,347.50 divided on 221.375 shares with a nominal value of KM 60.18
per share.
The Assembly of Shareholders of Tobacco Factory Mostar has passed a
Decision on decrease of the basic capital to cover the loss during 2005,
No.SD-308/5-07, dated June 29, 2007, approved by Decision of the FBiH
Commission for Securities No.03-19-394/07, dated August 3, 2007, therefore
after the said decrease the basic capital amounted KM 10,375,846.25 divided
on 221.375 shares with a nominal value of KM 46.87 per share.
Basic capital and ownership structure after privatization, together with
decreased basic capital are presented in the Table below:
Table 1.2 – Ownership structure
Capital owner
Amount (KM)
%
State capital
6,951,817.00
67%
Private capital
3,424,029..25
33%
Total basic capital:
10,375,846.25
100%
67% of the company capital is offered for sale. through the method of
Direct Negotiations.
 Investors’ Benefits
Tobacco Factory Mostar offers numerous benefits to potential investors, some
of which are:

Experienced producer of cigarettes and other tobacco products;

Tobacco processing tradition;

Manpower soundly experienced and skilled for production process;

A huge land surface with large facilities – adequate for running
business and with possibility for expansion. Fairly sufficient closed
warehouse capacities for storage of raw-materials and finished
products;

Attractive location near the arterial road Sarajevo-Ploče;

Good transport communication and connections.