GRANIT CONSTRUCTION STOCK CO. was founded as a “company for construction of roads for the requirements of the Socialist Republic of Macedonia” under a government decision of the S.R. Macedonia no. 1235/52 on November 24, 1952. In the following 57 years GRANIT has transformed from a socialist company to a public company by privatization in 1996, growing to become the largest Macedonian civil contractor.

In the Yugoslav era GRANIT developed capacities for executing bigger projects and since Macedonia is too small to satisfy GRANIT’s full capacity the solution was to expand and participate in international projects.

Today, GRANIT tries to maintain a balance between works execution home and abroad in order to continue to exist as one of the few companies responsible for the infrastructure development in the country as well as excel and gather knowledge from executing works abroad.

Men who stand behind the name of GRANIT today, have one wish in common - to preserve all that has been created until now, so that GRANIT can step into the future even more granite-like.

CEOMilkovski Straso

whoweare

1952•GRANIT was founded as a company for construction of roads for the requirements of the Socialist Republic of Macedonia

1963•GRANIT is taking part in the reconstruction after the Skopje earthquake which levels the bigger part of the city to the ground

1969•First contract abroad and first in the Middle East, Construction of the Homs- Salet highway in Syria

1972•Takes part in the construction of the Zwentendorf nuclear power plant in Austria

1974•GRANIT is awarded a contract to build a Kuwaiti military airbase (contract of 162.000.000, 00 USD) which is the first major project abroad

1975•Takes part in the construction of the Altenwört hydropower plant in Austria

1979•GRANIT enters the Libyan market constructing highways and streets in Benghazi

1981•Project 202-B-2 military airfields (249.500.000, 00 USD) in Iraq•GRANIT wins its third biggest contract (93.500.000, 00 USD) in residential building in Maturate, Libya

1987•Project 1100 - military airfield in Iraq

1989•Rehabilitation of the Kuwaiti International Airport runway•Construction of a military airbase in Algeria

1993•GRANIT wins the first project abroad after the collapse of Yugoslavia; construction of Novokuzneck Steel factory, GRANIT’s first project in Russia

1994•Enters the Bulgarian market: contracts totaling57.500.000, 00 USD

1996 •GRANIT was transformed into a joint stock company and became the first civil contractor with private capital in the country

1997•GRANIT starts a Hotel at the Ohrid Lake with initial idea to act as a company retreat for the employees. Later to be opened for the public as well•Rehabilitation of Sarajevo airport•Rehabilitation of Sofia airport

1999•Enters the Albanian Market - winning four contracts(ca. 60.000.000, 00) in 3 years period

2002•Gamatroniks DOOEL is established by GRANIT as a subsidiary in order to manage a reinforced mash factory, the biggest cement plant in Skopje as well as a machine workshop part of a led and zinc mine in the Eastern part of Macedonia

2003•Enters the Croatian market; contracts totaling62.520.000, 00 EUR•Enters Ukraine market; contracts totaling135.000.000, 00 EUR

2006•GRANIT wins the rehabilitation of Pristine Airport, Kosovo

2008•Project of 145 High school gyms totaling 58.280.000, 00 EUR

2009•Construction of the State archive, Constitutional courtand Archeological museum in Macedonia

Corporate History

Corporate ManagementGRANIT complies with the European Corporate Governance Code; the two-tier system comprised of the Executive Board that reports on behalf of the Supervisory Board is accustomed.

Shareholders StructureAccording to the Corporate Governance Code the shareholder’s structure of the 3.071.300, 00 bearer shares issued by GRANIT are displayed:

35% Managemant45% Free float

7% Pension Fund 13% Share Fund

Organizational Structure

International and Marketing Department

Organisational Unit 01 Bitola

Organisational Unit 03 Ohrid

Organisational Unit 09 Skopje

Organisational Unit Ugostitelstvo

Organisational Unit Laboratorija

Finance Department

CommercialDepartment

Legal Department and Human Resources

(&HR)IT Department

Organisational Unit Mehanizacija

Organisational Unit 11 Delchevo

CEO

CEO Cabinet

Chief Operations Officer

TUR

ROUHUN

SVK

CZE

POL

BLR

LIT

LAT

EST

DNK

SWE

NLD

BEL

SLO

CHE

MDA

ITA

GR

SRB

HR

KOSMNE

BIH

MACEDONIA

ALB

BG

RUS

UKR

IRAN

IRAQSYRIA

KUWAIT

DE

AU

Algeria

Libya

GRANIT Throughout The World

GRANIT’s first international project was the Homs-Salet road in Syria in 1969. This was the first attempt for GRANIT to work outside of Macedonia and establish itself as an international company. Since then it has been active and executed works in Austria, Kuwait, Libya, Iraq, Algeria, Russia, Bulgaria, Ukraine, Germany, Albania, Croatia, Bosnia and Herzegovina, Serbia and Montenegro. Today, GRANIT has a history as an international construction company with 40 years of experience with diverse cultures, customs and environments.

Currently GRANIT is executing works in Ukraine, Croatia, Albania and Kosovo within the scope of its core business, setting a personal record of laying 5000 tones of asphalt in a day in Ukraine, constructing 7 bridges in Albania and rehabilitating the Pristine airport in Kosovo.

Combining best engineering practices, methods, techniques, designs and ideas from the past and present are what GRANIT is made of. Today GRANIT has grown into a company where teamwork and maximal engagement with the clients is strongly encouraged, using up the whole potential in all of the activities.

TUR

ROUHUN

SVK

CZE

POL

BLR

LIT

LAT

EST

DNK

SWE

NLD

BEL

SLO

CHE

MDA

ITA

GR

SRB

HR

KOSMNE

BIH

MACEDONIA

ALB

BG

RUS

UKR

IRAN

IRAQSYRIA

KUWAIT

DE

AU

Algeria

Libya

Our PeopleGRANIT’s management characterizes employees as ambitious and self-motivated and exercise

self-control. Employees at GRANIT enjoy their mental and physical work duties. According to head

of HR department, to them work is as natural as play.

They possess the ability for creative problem solving, while their talents are maximum utilized in

problem solving cases. Given the proper conditions, employees seek out and accept responsibility

and exercise self-control and self-direction in accomplishing objectives to which they

are committed. We believe that by giving the right conditions, most people

will want to perform well at work. The satisfaction of doing a good job is

a strong motivation. Our managers are open to a more positive view of

workers and the possibilities that emerge. Developing climate of trust

with employees that is also required for human resource development

is the essential part of our human resource strategy.It’s here

through human resource development that is a crucial aspect of

our organization. This includes managers communicating openly

with subordinates, minimizing the difference between superior-

employee relationships, creating a comfortable environment in

which employees can develop and use their abilities.

This climate includes the sharing of decision making

so that employees have a saying in decisions that

influence them.

GRANIT continues to invest in the

constant development of our

employees professional and

personal skills.

We believe that giving our

employees more

responsibility allows them to grow.

Employee Structure

81% Workforce

13% Administration

6% Engineers

6% Electrical engineers

13% Mechanical engineers

3% Mining engineers 4% Chemical engineers1% Trafic engineer1% Hydro engineers

2% Geodetic engineers

42% Civil engineers

28% Architects

Minimizing impact from our activities on the environment is of key importance, ISO 14001:2004 registration is achieved on all of our construction sites and plants.

Safety is of outmost importance to both our own and the general public: OHSAS 18001:2007

Quality management and improvement, performance management, measurement of performance are the pillars of our organization. EN ISO 9001:2000 registration is what we take very seriously and work in order to excel.

what we do

GRANIT’s core business in both the domestic and international market is roads, bridges and airports construction.

While residential, public and administrative as well as industrial buildings are also part of GRANIT’s portfolio, construction of such is only practiced in our domestic market.

Main Activities

Road Construction is the core business field for GRANIT.

For 57 years of active operation, GRANIT has constructed over 820 km of highways, 6064 km of roads, excavation and filling in hundreds of millions cubic meters of earth, and building-in several million tons of asphalt. On these constructions, hundreds of kilometers of embankment and thousands of kilometers of drainage systems were reconstructed.

GRANIT undertakes projects of different sizes. Skopje ring road, Kiev - Lvov road rehabilitation as well as Macelj - Zagreb - Lipovac highway rehabilitation are some of GRANIT’s most notable projects.

Road Construcution

Construction of interchange Hipodrom,Macedonia, 2005

Construction of Skopje ring road,Macedonia, 2003 - 2009

Construction of Skopje - Tetovo motorway,Section Grupchin - Skopje,Macedonia, 1999 - 2002

Construction of Kukes - Morine road,Albania, 2006 - 2009

Reconstruction of Corca - Capshtica motorwayAlbania, 1999 - 2001

Construction of interchange Veliko Trnovo,Bulgaria, 1998 - 1999

Rehabilitation of Kiev - Chop motorway,Section II, Ukraine, 2005 - 2008

Derevach Kiev - Chop ring road,Ukraine, 2007 - 2008

Rehabilitation of M06 Kiev - Chop motorway,Section I, Ukraine, 2002 - 2005

Reconstruction of Zagreb - Beograd motorway,Section II Ljipovaljani, Croatia, 2004 - 2005

Reconstruction of Zagreb - Sisak motorway,Section Velika Gorica - Bushevac, Croatia, 2007 - 2009

Construction of motorway Rijeka - Zagreb,Section Kikovica - Ostrovica, Croatia, 2006 - 2007

GRANIT has constructed over 2300 bridges in its existence, both in country and abroad, making the company develop capacities and knowledge in the bridge construction. Parts of the bridges are a concrete reinforced, and part pre-stressed. They are constructed as passageways on highways, roads, streets, railways, as well as passage ways over rivers and urban areas. Construction of three bridges Veliki Svib, Mali Svib and Melnik on the highway Rijeka - Zagreb links the capital with the Croatian Riviera. While the construction of one over pass and 7 viaducts with total length of 1400 meters on the Kukes-Morine motorway contributes to the development of the Albanian roads network.Rehabilitation of over 50 bridges in Ukraine is just a part of the rehabilitation of Kiev - Chop motorway.As well recent days the company has been active in country by reconstructing of 54 bridges on E75 motorway that links Macedonia with its north and southern neighbors.

Bridge Construction

Viaduct Nr.7, Albania, 2006 - 2009 Construction of one over pass and 7 viaducts on the Kukes - Morine motorway

Viaduct Nr.2, Albania, 2006 - 2009 Construction of one over pass and 7 viaducts on the Kukes - Morine motorway

Veliki Svib bridge, Croatia, 2006 - 2007Construction of three bridges on the highwayRijeka – Zagreb

Construction of Kalimanci bridge, Macedonia, 1995 -1996

Bridge Nr. 22, Macedonia, 2008 - 2008 Rehabilitation of 22 bridges on E 75 motorway,Section Demir Kapija - Gevgelija

Rehabilitation of bridge, Macedonia, 2007 - 2008 Rehabilitation of 32 bridges on E75 motorway,Section Skopje - Veles

GRANIT managed to transfer the experience gathered with the construction of airports in Iraq, Bosnia and Herzegovina, Kuwait, Algeria and both main airports in country Skopje and Ohrid. Despite successful experience in construction of airports the company has been involved in reconstruction of the runway, taxiways and aprons on the Skopje and Ohrid airports, as well as on Sofia airport.Nowadays GRANIT plays crucial role in the reconstruction process of Pristine airport by extension of the main runway, building modern taxiway and aprons.

Airports construction

Airport IraqRehabilitation of the B-2 military airfields,Iraq, 1981-1981

Airport OhridRehabilitation of Ohrid airport,Macedonia 1990 – 1990

Airport KuwaitRehabilitation of the Kuwaiti International Airport runway, Kuwait 1989 – 1989

Airpot SkopjeReconstruction of Skopje airport,Macedonia 1993 – 1993

Airport SaraevoRehabilitation of Sarajevo Airport,Bosnia and Herzegovina 1997- 1997

Airport PristineRehabilitation of Pristine airport,Kosovo 2006 – 2008

For a half a century of our existence GRANIT has built many hydro technical structures of all kinds in Macedonia: Concrete dams, embankments for river control, irrigation system and water supply system.

The company is proud of continuous contribution into the building and development of the national electric power system.

GRANIT took part in the construction of Kozjak hydropower plant with capacity of 100MWh.Concrete dam Sveta Petka not far from the capital enables production of additional 27,66MWh that is enough to satisfy the capital household needs and some part of the capitals industry.Knezevo earth-rock dam with its 1.7mil m3 of embankments will contribute additional 22.5mil m3 useful water accumulation to the hydro system Zletovica.

Hydro Construction

Ratevska reka dam, Macedonia, 1972-1972

Sv. Petka dam, Macedonia(in construction)

Knezevo dam, Macedonia(in construction)

Although GRANIT is specialized in road construction, we can proudly say that our company is the leading company in our country for residential and commercial building construction. In the last 20 year GRANIT has built 84 public and private schools, 307 industrial buildings and 653 commercial buildings.

The building construction projects such as the State archive, Constitutional court and Archeological museum in Macedonia and the project for construction of 145 elementary and secondary school gyms are part of GRANIT’s portfolio.

Building Construction

Macedonian telecomunications headquarters,Macedonia, 2000 - 2001

Customs Headquarters,Macedonia, 2003 - 2004

Honda show room,Macedonia, 2008 - 2009

GRANIT’s strategy is to be economically independent and self-sufficient for most of its basic resources therefore securing resources such as rock, concrete and asphalt is of outmost importance.

Plants and production facilities

Photo 5Reinforcement mesh factory

Photo 1Concrete plant, capacity 180m3/h

Photo 2Asphalt plant, capacity 320t/h

Photo 3Asphalt plant, capacity 155t/h

Photo 4Quarry Brazda

PlantsGRANIT operates 24 concrete plants with capacity from 15 m3/h to 180m3/h, and 12 asphalt plants with capacity from 40 t/h to 320 t/h.

QuarriesGRANIT has a concession on 14 stone quarries for production of crushed stone fraction, controlling approxi-mately 78 Million tons of permitted aggregated reserves in the country.

The annual aggregated production for 2008 was approx. 650.000 tons, 2007 was approximately 270 000 tons, for 2006 was approximately 700 000 tons.

Production facilitiesGRANIT owns manufacturing and maintenance plants and production factories located throughout the whole country:

• Production of separated natural sand and gravel.

• Production of wood construction elements.

• Reinforcement mesh factory.

• Finishing and craftsmen works.

• Construction equipment maintenance and repairs plant.

• Production of bricks and roof tiles.

• Exploitation of marble and production of marble tiles.

• Exploitation and production of elements from natural clay.

21

5

43

MachineryLogistics and equipment are one of the key assets of GRANIT. GRANIT’s Mechanical department counts 600 employees who operate and perform maintenance on the machinery.

GRANIT’s machinery and equipment park accounts for 599 pieces of construction machinery and 22 cranes.

Revenues abroad and in country for last 5 years

60.1

79,6

1

0,00

10.000,00

20.000,00

30.000,00

40.000,00

50.000,00

60.000,00

70.000,00

80.000,00

2004 2005 2006 2007 2008

abroadIn country49

.511

,39

48.4

67,9

7

58.3

36,7

1

63.8

15,0

3

69.1

21,2

9

55.6

47,0

0

53.6

00,0

0

60.5

05,5

4

41.5

05,4

6

in th

ousа

nd E

UR

Consolidate revenue and distributed profit in last 5 years

revenuesdistributed profit

in th

ousа

nd E

UR

0

20.000

40.000

60.000

80.000

100.000

120.000

140.000

2004 2005 2006 2007 2008

2.24

0,00

3.74

2,00

4.36

6,00

5.68

8,00

109.

691,

00

6.41

7,00

109.

248,

00

102.

008,

00

112.

284,

00

127.

458,

00

Short Financial Overview

Average distributed profit per employee in last 5 years

distributed profitper employee

in th

ousа

nd E

UR

0

0,5

1

1,5

2

2,5

3

2004 2005 2006 2007 2008

2,67

3,01

1,73

1,32

0,77

Working abroad in 2008

43,32% Ukraine

13,02% Albania

CroatiaKosovoAlbania

Ukraine

As a % of Abroad Revenue 2008

36,04% Croatia

7,61% Kosovo

GRANIT CONSTRUCTION STOCK CO.Dimitrie Cupovski 8, 1000 Skopje, Macedonia

tel +389 2 3218 700 | granit@granit.com.mk | www.granit.com.mk