Atlantic Grupa d.d. June 20th, 2012 1 KEY BUSINESS DEVELOPMENTS IN - PowerPoint PPT Presentation

GENERAL ASSEMBLY Atlantic Grupa d.d. June 20th, 2012 1

KEY BUSINESS DEVELOPMENTS IN 2011  Guidance delivered despite challenging macroeconomic environment  Successful execution of integration of Droga Kolinska and Atlantic Grupa  Divestment of non-core assets: 13% share in RTL Hrvatska television channel  Bond refinancing: new corporate bond ATGR-O-169A  Regular fulfilment of all financial obligations  Surging prices of all key raw and packaging materials  PPA – Purchase Price Allocation for Droga Kolinska  Achievement of synergy effects 2

OWERVIEW OF FY11 RESULTS  Sales at 4,727.8 million kuna + 108.4% yoy based on reported figures + 1.2% yoy organic growth + 4.8% yoy growth compared to pro-forma consolidated level in the same period last year  Normalized earnings before interests, taxes and depreciation (EBITDA) at 517.3 million kuna + 156.5% yoy based on reported figures - 1.7 yoy growth compared to pro-forma consolidated level in the same period last year  Normalized earnings before interests and taxes (EBIT) at 309.2 million kuna + 110.9% yoy based on reported figures + 12.1% yoy growth compared to pro-forma consolidated level in the same period last year  Net profit after minorities at 46.6 million kuna * Normalised net profit after minorities at 19.7 million kuna 3

RESULTS IN LINE WITH GUIDANCE HRKm 101.7% 98.2% 96.9% 2011A 2011A 527 517 4,728 600 2011E 2011E 4,750 319 309 400 4,650 4,650 200 0 4,550 EBITDA EBIT Sales  2011 result normalized 4

SALES IN 2011 HRKm FY11 vs. FY10 FY11 vs. FY10 organic FY11 vs. FY10 Pro-forma FY11 FY11 FY11 FY10 FY10 FY10 +1.2% 4,728 4,728 2,296 +4.8% 2,269 4,513 5,000 4,800 +108.4% 2,300 4,000 4,600 2,250 2,269 3,000 4,400 2,200 4,200 2,000 2,150 4,000 1,000 2,100 * Sales growth: +108.4% * Sales growth: + 4.8% comparing to * Sales growth : +1.2% without Droga pro-forma consolidated sales in 2010 Kolinska effect  Growth generators:  Growth generators:  Growth generators: (i) Acquisition of Droga Kolinska (i) Growth on regional markets after (i) Growth of own brands within Sports acquisition of Droga Kolinska and Functional Food division (ii) Organic growth of Atlantic Grupa (ii) Growth in coffee, sweet and salted (ii) Sales growth of private label snacks and baby food segments (iii) Newly opened pharmacies and (iii) Growth in Sports and Functional specialized stores Food and Pharma divisions (iv) Final consolidation of acquired pharmacy chain Dvoržak 5

GEOGRAPHIC SALES PROFILE 2011 Croatia  Croatian market remained the largest selling market after 3%2% acquisition of Droga Kolinska with 28.2% share of total sales, Serbia however the acquisition itself significantly reduced exposure to 15% Slovenia 28% domestic market from 55.1% in 2010  Regional markets (without Croatia) have 52.0% share of total sales B&H 6% compared to 18.9% in 2010 Other ex. Yu*  Share of Western and Northern European markets fell to 14.7% 8% Western and Northern from 19.1% in 2010, as sales of acquired Droga Kolinska are mostly Europe focused on regional markets and to smaller extent on Russian market Russia and EE 13% 25%  East European markets have 3.0% share of sales compared to Other 1.8% in 2010, due to Droga Kolinska’s presences on those markets Pro-forma consolidated 2010 Stand-alone 2010 Croatia Croatia 4% 3% 2% 5% Serbia Serbia 11% Slovenia Slovenia 30% 19% B&H B&H 6% Other ex. Yu* Other ex. Yu* 2% 55% 9% 3% Western and Northern Western and Northern Europe Europe 8% Russia and EE Russia and EE 13% 6% 24% Other Other 6 *Other ex. YU: Macedonia, Monte Negro, Kosovo

SALES BY PRODUCT TYPE Own brands 2011 6% +6.4% compared to pro-forma consolidated sales in 2010 5% Own brands +1.8% on organic level (without Droga Kolinska) Principal brands Principal brands -9.7% yoy 17%  Share decrease due to conolidation of Droga Kolinske Private label Private label +31.8% yoy 72% Farmacia Farmacia +15.6% yoy +9.8% on organic level (excluding acquired chain Dvoržak ) Pro-forma consolidated 2010 Stand-alone 2010 5% 11% Own brands Own brands 4% 8% Principal brands Principal brands 41% 20% Private label Private label 71% Farmacia Farmacia 40% 7

KEY BRANDS IN 2011 597 HRKm Sales Net I 441 333 304 235 172 171 144 141 126 125 Grand Kafa Argeta Cedevita Barcaffe Multipower Smoki Cockta Najlepše želje Bebi Champ Donat Mg The following brands achieved growth: i. Coffee – Grand Kafa 12.3% i Barcaffe 9.7% ii. Sweet and salted snack – Najlepše želje 11.6% andSmoki 5.5% iii. Baby food – Bebi 11.7% iv. Sports and functional food – Champ and Multaben 8

SALES BY CATEGORIES Distribution (Principal brands) 3% Sports and Functional Food 17% 14% Pharma &Personal care (Farmacia, Fidifarm, Multivita, Neva) 9% Coffee 14% Sweet and salted snack 12% Savoury spreads 10% Beverages 21% Baby food Indicative overview of sales by categories (according to the new business model) in 2011 reflect the following:  Product category – coffee – with brands Grand Kafa i Barcaffe is the largest individual product category with 21% share in total sales  Product category – beverages – with key brands Cedevita, Cockta, Donat Mg is the second largest product category with 14% share in total sales  Product category – sports and functional foods – with key brands Multipower and Champ is the third largest product category with 14% share in total sales  Distribution which includes principal brands has 17% share in total sales 9

PROFITABILITY DYNAMICS HRKm EBITDA  Two-fold higher profitability on EBITDA and EBIT levels compared EBITDA to 2010 primarily reflected consolidation of Droga Kolinska 545 Normalized EBITDA 526 600 517 501  Decline in EBITDA compared to pro-forma consolidated 2010 largely reflected 20.7% yoy higher production materials costs 500  Normalised EBIT reflected the impact of finalised PPA process for 400 Droga Kolinska on tangible assets depreciation and intangible assets amortization 220 300 202 2011 vs. 2010 2011 vs. 2010 pro-forma 200 Normalised EBITDA +156.5% -1.7% Normalised EBIT +110.9% +12.1% 100 Normalised Net profit -67.5% -77.7% FY11 FY10 Pro-forma FY10 Stand-alone EBIT Net profit Net income EBIT Normalized net income Normalized EBIT 335 400 200 309 294 276 146 300 126 150 107 165 86 147 200 100 55 28 100 50 0 0 FY11 FY10 Pro-forma FY10 Stand-alone FY11 FY10 Pro-forma FY10 Stand-alone 10 10

FINANCIAL INDICATORS in HRKm FY11 YE10* Net debt 2,494.0 2,495.8 Total assets 5,355.2 5,259.3 Equity 1,512.3 1,456.3 Current ratio 1.84 1.34 Gearing ratio 62.3% 63.2% Net debt/EBITDA** 4.8 4.7 Interest coverage ratio** 2.3 5.3 Capex 96.5 34.8 Cash flow from operating activities*** 165.1 101.5 * P&L items on pro-forma consolidated basis **Normalized *** Excluding impact of transaction costs Leverage indicators:  Net debt-to-normalized EBITDA at 4.8 times Require: prudent debt management and delivery of  Interest covered with normalized EBITDA at 2.3 times synergies  Gearing ratio (net debt-to-net debt and total equity) at 62.3%  In accordance with the Policy of active financial debt management, Atlantic Grupa fixed substantial portion of its long- term financial liabilities with interest rate swaps in the 1Q11  In 2011, Atlantic Grupa refinanced corporate bond in the nominal amount of HRK 115m maturing in 2016 11 11

NEW BUSINESS MODEL OF ATLANTIC GRUPA FROM 2012 SBU SBU SBU SPORTS SBU PHARMA SBU SBU BEVERAGES AND AND SAVOURY COFFEE SNACKS FUNCTIONAL PERSONAL SPREADS Vitamin instant Turkish, Sweet and FOOD CARE Savoury spreads drinks and teas salted snacks Espresso, Sandwiches of Carbonated soft VMS and OTC Instant extended drinks Sports and Pharmacy chain freshness functional food Functional water Cosmetics and and Water personal care SMU SMU SMU SMU MU Croatia Slovenia, HoReCa International Russia Serbia and markets Hotels, restaurants Baby food Macedonia All markets outside and cafes All products sold in ex.-YU region and CIS region Russia  Reorganization in 2012 with an aim to manage business segments and distribution markets more efficiently  Operational business also includes Central procurement, Central marketing and Corporative quality management functions 12 12

ORGANISATIONAL STRUCTURE MANAGEMENT Strategic Management Council : deals with vital strategic Emil Tedeschi and operational corporate issues. President of the Consists of: Board members, Senior Executive Directors of Management Board SBUs and SDUs, Secretary General, Executive Directors of Controlling, Brand operations management, Central Purchasing and HR as well as the Head of Investment Committee. Mladen Veber Zoran Stanković Neven Vranković Senior Group Vice Group Vice President Group Vice President President Finance, IT and Business Corporate Affairs Business Operations Development SUPERVISORY BOARD 13 13