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INVESTMENT OPPORTUNITY IN SERBIA:

MEDICAL CENTER BELGRADE (MCB)

Belgrade, February 2011

PREMIER PRIVATE MEDICAL INSTITUTION IN SERBIA

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TABLE OF CONTENTS
Serbian healthcare system Slide 3 Slide 4 Slide 5 - 6 Slide 7 Slide 8 Slide 9 Slide 10 Slide 11 Slide 12 Slide 13 Slide 14 Slide 15 Principal idea of MCB business model MCB Overview LocaEon MCB Services

Medical Equipment

Hospitals daily capacity

Projected capacity usage and pricing Financial projecEons Proposed transacEon TransacEon Emelines Contacts

INVESTMENT OPPORTUNITY IN SERBIA

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SERBIAN HEALTHCARE SYSTEM

Quality of public healthcare services has been continuously deteriorating in recent decades, resulting in low level of satisfaction and trust in the healthcare system by the general public.

Growing public cost of the healthcare system, combined with increasing state budget decit and long waiting lists of patients made it apparent to the officials that the existing healthcare system is not sustainable in the long run.

As a result, a major shift in the healthcare policy emerged in the last two years, recognizing public-private sector partnerships (PPP) as the solution to this acute problem.

The government started outsourcing healthcare services from the private sector starting with cardiac surgeries, with plans to expand PPP in other medical elds where the state has decient capacities.

HUGE PROFIT POTENTIAL FOR PRIVATE HEALTHCARE PROVIDERS

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PRINCIPAL IDEA OF MCB BUSINESS MODEL

Engage in public-private sector partnerships (PPP) by developing medical infrastructure and providing services in those sectors where the state has insufficient infrastructural capacity and which require substantial capital investments.

MCB started servicing patients in July of 2010, after signing contracts with the State Health Insurance Fund, which utilized over 50% of its capacity in several elds, such as cardiac diagnostics and surgery.

Up to date, MCB has performed and collected funds from the state for over 280 open heart surgeries.

SUCESSFUL BUSINESS MODEL

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MCB OVERVIEW
MCB was founded by Mr. Dragan Pavlovic and his wife. Mr. Pavlovic is a prominent Serbian businessman with more than 25 years of professional experience. MCB founders own 100% of equity in the business. The MCB building is designed on 6,000 m2 spread over four levels. Based on citys urban plan and the building permit, MCB may be enlarged by additional four levels (5,000 m2), which would total 11,000 m2. There are two vacant parcels that are adjacent to the land area of MCB, which offers excellent potential for further development. MCB currently employs 132 people, out of which 35 are MDs; 68 are nurses and medical technicians; 2 pharmacists; 1 biochemist; 26 are administrative and other supporting staff. Medical staff is uent in English.

SOUND FOUNDATION FOR DEVELOPMENT

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MCB OVERVIEW cont.

Expert team of BMC comprises outstanding experts in their respective elds

The entire center is equipped using the very latest medical technology

Top quality construction and attention to details resulted in outstanding premises with pleasant interior HIGH QUALITY FACILITY AND OUTSTANDING PATIENT CARE
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LOCATION
MBC is located in the heart of New Belgrade, with excellent access to major roads, highway/corridor 10, downtown, airport and has its own parking for more than a hundred vehicles.

LOCATION, LOCATION, LOCATION

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MCB SERVICES
Internal medicine Interventiona l cardiology Surgery Radiology

Gynecology

Urology

Orthopedics

Pediatrics

Otorhinolaryngology

Neurology

Psychiatry

Dermatovene -rology

Occupational Medicine

Physical medicine and rehabilitation

Laboratory

Anesthesiology and Resuscitation

FULL SPECTRUM OF MEDICAL SERVICES ALL IN ONE PLACE

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MEDICAL EQUIPMENT
RICHARD WOLF Laparoscopic and endoscopic equipment, Martin, SCAN LINE, Surgical instruments
ULTRASOUND DIAGNOSTICS TOSHIBA

SCHILLER Cardiology units: ECG devices, ECG holters, Holter CA, Ergometry (TREDMIL), Spirometry, debrillators GETTINGE The Central sterilization (Autoclaves and trainers, washing machine tools) MESSER, DRAEGER Separation of medical gases OPT Operating table DRAEGER Anesthesia machines, operating lamps, monitoring of the patients, respirators, complete intensive care, Stocker, machines for bloodstream out of body

Xario, Nemio XG RADIOLOGY - TOSHIBA RTG QUANTUM, RTG ULTIMAX, CT MS AQUILION 64, MAMMOGRAPH PLAMED CR DIGITIZATION, MRI 1.5 T, ANGIO ROOM with electrophysiology INFINIX IVF CENTER NICON Microscopes, NARASHIGE micromanipulators, HEREUS incubators GIVAS - ITALY Patients' beds with 2 and 4 sections

LATEST GENERATION OF MEDICAL EQUIPMENT AND TOOLS

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HOSPITALS DAILY CAPACITY

With 7 operating rooms, 74 beds, 7 intensive care, MCB is capable of performing large number of diagnostic reviews, surgery treatments and other medical services.

Radiology
Up to 200 complex diagnostic procedures per day

Surgery
More than 60 surgical treatments per day (general, cardiac, vascular,laparoscopic, gynecological, urological, oncologyical, orthopedic and cosmetic surgery)

IVF center
Up to 2 procedures per day

Interventional cardiology

Reviews
Up to 330 reviews of doctors specialists per day in the following elds: ophthalmology, gynecology, radiology, internal medicine, otolaryngology and others

Procedures
Up to 12 endoscopy procedures and 4 puncture procedures

up to 30 treatments per day

HIGH VOLUME AND SUPREME SERVICE

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PROJECTED PRICING AND CAPACITY USAGE

Average projected price per service (EUR) Magnetic Resonance CT Scanner RTG Quantum Bucky RTG-Oscopy Mammography Ultimax Scanner Angiography Endoscopy Smaller gynecology interventions Smaller surgical interventions Puncture section Polyclinic General Surgery section Apartment section/rooms Beds Cardio Surgery Eye Surgery IVF section Year 1 Year 2 Year 3 Year 4 Year 5 Average Daily Capacity Usage Year 1 Year 2 Year 3 Year 4 Year 5 200 200 10 130 50 100 1,000 10 296 325 160 50 1,990 200 90 6,200 1,200 2,500 200 200 10 130 50 100 1,000 10 296 325 160 50 1,990 200 90 6,200 1,200 2,500 180 180 9 117 45 90 900 9 266 293 144 45 1,791 180 81 5,580 1,080 2,250 160 160 8 104 40 80 800 8 237 260 128 40 1,592 160 72 4,960 960 2,000 160 160 8 104 40 80 800 8 237 260 128 40 1,592 160 72 4,960 960 2,000 Magnetic Resonance CT Scanner RTG Quantum Bucky RTG-Oscopy Mammography Ultimax Scanner Angiography Endoscopy Smaller gynecology interventions Smaller surgical interventions Puncture section Polyclinic General Surgery section Apartment section/rooms Beds Cardio Surgery Eye Surgery IVF section Laboratory 30% 30% 30% 30% 30% 30% 30% 40% 40% 40% 40% 40% 40% 40% 60% 60% 60% 60% 60% 60% 60% 80% 80% 80% 80% 80% 80% 80% 90% 90% 90% 90% 90% 90% 90%

30% 30% 30% 30%

30% 30% 30% 60% 80% 30% 30% 1.50%

80% 80% 80% 80%

40% 40% 70% 60% 85% 40% 40% 1.50%

100% 100% 100% 100%

60% 60% 70% 65% 90% 60% 60% 1.50%

100% 100% 100% 100%

80% 80% 70% 70% 100% 80% 80% 1.50%

100% 100% 100% 100%

90% 90% 70% 70% 100% 90% 90% 1.50%

CONSERVATIVE USAGE SCENARIO

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FINANCIAL PROJECTIONS
EUR Operating revenues Operating costs (excluding depreciation and equipment rent costs) EBITDA EBITDA Margin Depreciation and equipment rent EBIT EBIT Margin 2011 17,338,489 2012 22,616,339 2013 27,195,982 2014 30,449,766 2015 33,482,833

11,811,664

14,404,316

16,923,746

19,146,463

20,586,284

5,526,825 31.88% 1,640,000 3,886,825 22.42%

8,212,023 36.31% 1,640,000 6,572,023 29.06%

10,272,236 37.77% 1,640,000 8,632,236 31.74%

11,303,303 37.12% 1,640,000 9,663,303 31.74%

12,896,549 38.52% 1,640,000 11,256,549 33.62%

REALISTIC GROWTH POTENTIAL BASED ON CONSERVATIVE USAGE SCENARIO 12

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PROPOSED TRANSACTION
The owner is looking for a reputable strategic investor prepared to take equity stake and add value to MCB by capital increase, transfer of knowhow and development of additional capacity. Preferably, the investor will have long history of proven track record of successful management in private healthcare industry. The owner will consider majority or minority equity options with various scenarios of acquisitions encompassing: building, equipment and business.

INVESTMENT OPPORTUNITY IN SERBIA

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