ATLANTIC GRUPA Company of Added Value Erste Group Investor - - PowerPoint PPT Presentation

ATLANTIC GRUPA

Company of Added Value

Erste Group Investor Conference, Stegersbach September 2014

CONTENT OVERVIEW OF ATLANTIC GRUPA FINANCIAL OVERVIEW IN H1 2014 FINANCIAL OVERVIEW IN 2013 STRATEGIC GUIDANCE

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ONE OF THE LARGEST FOOD AND BEVERAGES COMPANIES IN THE SEE REGION

Key business segments: Key brands:

• The leading coffee producer in the region

GRAND KAFA, BARCAFFE

• Prominent European company in the sports nutrition

MULTIPOWER

• Among the leading soft drinks producers in the region

CEDEVITA, COCKTA, DONAT Mg

• Among the leading confectionary & snacks producers in the region

SMOKI, NAJLEPŠE ŽELJE, BANANICA

• Among the leading savoury spreads producers in the region

ARGETA

• Producer of the No1 Croatian brand in the VMS segment

DIETPHARM

• The leading private pharmacy chain in Croatia

FARMACIA

• The leading FMCG distributer in the SEE region

International Brands (Ferrero, Wrigley, Unilever, ...)

Business

• Fast Moving Consumer Goods

Headquarters

• Zagreb, Croatia (Europe)

Foundation

• 1991

No of employees

• 4,228

FY13 sales

• EUR 674 millions

Key Markets

• SEE region, Western Europe, Russia
• presence on over 40 markets

Production locations

• 14 production locations in Croatia, Slovenia, Bosnia and

Herzegovina, Serbia, Macedonia and Germany

The region includes: Croatia, Slovenia, Bosnia and Herzegovina, Serbia, Montenegro, Macedonia and Kosovo. Reporting currency HRK, all figures in the presentation translated at EUR/HRK FX rate of 7.5.

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DEVELOPMENT CYCLE: EXTENSIVE M&A TRACK RECORD

Acquisition of Kalničke vode Bionatura Acquisition of DROGA KOLINSKA Acquisition of pharmacies – Farmacia IPO Acquisition of Fidifarm & Multivita Representative office Moscow Acquisition of Haleko & Power Gym: MULTIPOWER 2010 2010 2008/9 2007 2007 2006 2005 Acquisition of Melem Atlantic Slovenia Atlantic Macedonia Acquisition of Neva Acquisition of CEDEVITA Atlantic Serbia Representative office B&H 2004 2004 2003 2003 2001 2001 2001 Cooperation Johnson & Johnson Cooperation Duracell Distribution center Rijeka Distribution center Osijek Distribution center Split Cooperation Wrigley 1999 1996 1994 1994 1992 1991

DISTRIBUTION DISTRIBUTION & PRODUCTION VERTICAL INTEGRATION

European company National company Regional company

2010*: Pro-forma consolidated with Droga Kolinska.

1 6 12 17 27 33 36 42 61 81 90 102 145 186 223 267 293 302 602 630 657 674 100 200 300 400 500 600 700 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2010* 2011 2012 2013 Sales in EURm

CAGR 1993-2013: +38.0%

ATLANTIC GRUPA’S BUSINESS MODEL TODAY

SBU COFFEE

• From 2014 the company's business operations are organized in six Strategic Business Units (SBU), one Business Unit (BU), five

Strategic Distribution Units (SDU) and two Distribution Units (DU), allowing the company to manage its production and distribution

• perations more effectively

SBU BEVERAGES SBU SPORTS AND FUNCTIONAL FOOD SBU PHARMA AND PERSONAL CARE SBU SAVOURY SPREADS SBU SNACKS SDU Croatia SDU Serbia SDU HoReCa Hotels, Restaurants, Cafes SDU International Markets*

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*International markets: markets outside the region (Croatia, Slovenia, Bosnia and Herzegovina, Serbia, Macedonia and Montenegro), Russia and CIS.

BU BABY FOOD SDU CIS DU Slovenia DU Macedonia

STABLE MANAGEMENT TEAM AND OWNERSHIP STRUCTURE

Supervisory board Supervisory Board

Audit Committee Nomination and Remuneration Committee Corporate Governance Committee Mladen Veber

Senior Group Vice President Business Operations

Zoran Stanković

Group Vice President Finance

Neven Vranković

Group Vice President Corporate Affairs

Emil Tedeschi

President of the Management Board

Strategic Management Council

Deals with vital strategic and operational corporate issues. Consists of: Board Members, Vice Presidents and General Managers of each SBU and SDU, Senior Executive Director for Regional KAM and Sales Croatia, the Secretary General, Executive Directors of Corporate Controlling, IT, Central Purchasing and Human Resources, and the Head of the Investment Committee. 6

Management Ownership structure on 30/09/2014

Lada Peter Franz Vedrana Zdenko Tedeschi Siniša Elam Josef Aleksandar Jelušić Adrović Fiorio Petrović Håkansson Flosbach Pekeč Kašić

President Vice President Member Member Member Member Member

• f the
• f the
• f the
• f the
• f the
• f the
• f the

Supervisory Supervisory Supervisory Supervisory Supervisory Supervisory Supervisory Board Board Board Board Board Board Board

Emil Tedeschi, 50.2% Pension funds, 17.9% EBRD, 8.5% DEG, 8.5% Lada Tedeschi Fiorio, 5.8% Management 1.1% Others, 8.0%

PRODUCT/DISTRIBUTION PORTFOLIO OVERVIEW

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Coffee

Turkish Coffee Espresso coffee Instant coffee

Savoury spreads

Meat spreads Fish spreads Sandwiches

Snacks

Savoury snacks Chocolate tablets Wafers & Biscuits Bars

Sports and functional food

Sports food Weight management range Energy range Body building range

Distribution

Own brands International brands

Beverages

Carbonated soft drinks Vitamin instant drinks Functional waters Waters Tea and Functional tea

Personal care

Body care Face care Lip care Tooth care

Pharma

Food supplements OTC products Pharmacy chain

Baby food

Baby cereals Milk formula Tea Water Biscuits

ATLANTIC GRUPA’S GREATEST ASSETS

Brands with key market positions - among the top 3 in their category based on latest available data. Market position ranking based on volume (items) market share. Data source: Nielsen Retail Panel, PharMIS and company data.

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Croatia Serbia Slovenia Bosnia and Herzegovina Macedonia Germany Italy United Kingdom Austria Switzerland Ukraine

GEOGRAPHIC PRESENCE AND MACROECONOMIC ENVIRONMENT

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Sales by countries in 2013; *Other regional markets: Macedonia, Montenegro, Kosovo; **Key European markets: Germany, UK, Italy, Switzerland, Austria, Sweden, Spain; Macro data source: European Commission, European Economic Forecast, Winter 2014; for FX rates - National Bank of Serbia, UniCredit CEE 4Q14, HAAB SEE Outlook June 2014, RBA CEE Strategy 4Q14.

Slovenia Croatia Bosnia and Herzegovina Serbia Macedonia + production facility in Germany Overview of production facilities

Croatia 24.8% Serbia 24.1% Slovenia 13.6% Bosnia and Herzegovina 7.2% Other regional markets* 6.3% Key European markets** 11.7% Russia and CIS 5.9% Other markets 6.4%

Sales by countries

Croatia 2011 2012 2013f 2014f 2015f GDP 0.0% (2.0%) (0.7%) 0.5% 1.2% Unemployment 13.5% 15.9% 17.6% 17.6% 17.2% CPI 2.2% 3.4% 2.3% 1.3% 1.5% EUR/HRK 7.43 7.52 7.57 7.63 7.64 Serbia 2011 2012 2013f 2014f 2015f GDP 1.6% (1.5%) 2.1% 1.3% 2.2% Unemployment 23.0% 23.9% 22.1% 22.3% 21.4% CPI 11.1% 7.3% 7.9% 4.3% 5.0% EUR/RSD 101.97 113.09 113.11 117.09 120.90 Slovenia 2011 2012 2013f 2014f 2015f GDP 0.7% (2.5%) (1.6%) (0.1%) 1.3% Unemployment 8.2% 8.9% 10.2% 10.8% 10.7% CPI 2.1% 2.8% 1.9% 0.8% 1.3% EUR/USD 1.39 1.29 1.33 1.36 1.27 Germany 2011 2012 2013f 2014f 2015f GDP 3.3% 0.7% 0.4% 1.8% 2.0% Unemployment 5.9% 5.5% 5.3% 5.2% 5.1% CPI 2.5% 2.1% 1.6% 1.4% 1.4% EUR/USD 1.39 1.29 1.33 1.36 1.27 Russia 2011 2012 2013f 2014f 2015f GDP 4.3% 3.4% 1.3% 2.3% 2.7% Unemployment 6.6% 5.5% 5.5% 5.9% 6.2% CPI 8.4% 5.1% 6.8% 5.9% 5.0% EUR/RUB 40.89 40.07 42.36 48.21 49.85

SALES PROFILE AND BUSINESS ENVIRONMENT

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Sales by segments and brands in 2013; Business environment source: www.confectionerynews.com, http://uk.synergytaste.com, www.beveragedaily.com, IGD Retail Analysis.

Top 5 factors influencing F&B industry

 Collaboration in innovation  Between ingredient and packaging firms and industry  Ethics at eye level  Environmental stewardship, animal welfare and fair play for workers are among conditions of production that consumers now expect  Rising food prices  Smaller grain stockpiles, a growing population, increased demand for animal protein and a changing climate disrupt supply/demand balance  Food taxes and subsidies  Balance taxes on less healthy foods with subsidies for healthy ones  Simple ingredients

Key retail trends

 Shoppers hungry for value  Online, digital and multi-channel  Redefinition of private label  Making the most of events  Focus on the store environment Principal brands 15.0% Sports and Functional Food 15.5% Pharma & Personal care 9.7% Coffee 21.5% Sweet and salted snacks 12.2% Savoury spreads 9.1% Beverages 12.9% Baby food 4.2%

Sales by segments

Own brands 72.5% Principal brands 15.0% Private label 6.4% Farmacia 6.1%

Sales by brands

FINANCIAL OVERVIEW: 2010 – 2013

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P&L figures normalized; *Gearing ratio calculated as Net debt/(Total equity+Net debt); ** For FY10 calculated on pro-forma level.

(EURm) FY10 FY10 pro-forma FY11 FY12 FY13 CAGR FY10 pro-forma - FY13 FY13/FY12 Revenues 306 609 637 665 679 3.7% 2.2% Sales 302 602 630 657 674 3.8% 2.5% EBITDA 27 70 69 74 79 3.9% 5.8% EBIT 20 37 47 53 57 15.5% 6.4% Net profit 11 17 9 15 27 16.6% 76.9% EBITDA margin 8.9% 11.7% 10.9% 11.3% 11.7% +3bp +37bp EBIT margin 6.5% 6.1% 7.4% 8.1% 8.4% +229bp +31bp Net profit margin 3.8% 2.8% 1.5% 2.3% 3.9% +116bp +166bp Net debt 333 333 333 314 275 Total assets 701 701 714 687 678 Equity 194 194 202 195 223 Gearing ratio* 63.2% 63.2% 62.3% 61.7% 55.2% Net debt/EBITDA 4.7 4.7 4.8 4.2 3.5 Cash Flow from operating activities 14 n/a 22 39 56

Balance sheet as

• f

YE10 reflected consolidation of Droga Kolinska, but P&L accounts were not consolidated in FY10 (consolidation started as of 01/01/2011). In 2014, the classification of contracted marketing expenses has changed from “Marketing and selling expenses” to decrease in “Sales revenues”, and classification of support for contracted marketing expenses has changed from decrease in “Marketing and selling expenses” to decrease in “Cost

• f

merchandise sold”. This reclassification decreases above presented sales by EUR 6 million in 2013 and EUR 5.5 million in 2012.

GUIDANCE TRACK RECORD

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 Atlantic Grupa listed on the Zagreb Stock Exchange on 19th of November 2007.  Since 2008 Atlantic Grupa publishes guidance for the following financial year and delivers it.

100 200 300 400 500 600 700 2008 2009 2010 2011 2012 2013 EBITDA (HRKm) 100% 98% 101% 98% 102% 101%

Reported Guidance

100 200 300 400 500 2008 2009 2010 2011 2012 2013 EBIT (HRKm) 104% 99% 95% 97% 104% 101%

Reported Guidance

100 200 300 400 500 600 700 800 2008 2009 2010 2011 2012 2013

Sales (EURm) 93% 103% 99% 102% 99% 98%

Reported Guidance

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PERFORMANCE ON CROATIAN CAPITAL MARKET

 The Atlantic Grupa’s share significantly outperformed the growth

• f Crobex and Crobex10 and ended at 30 September 2014 at

EUR 137.3, which was a 58,5% growth within a year.

* Closing price multiplied by the total number of shares ** EV and price multiples are calculated with the last price at 30 September 2014 and for the TTM 1H 2014 period *** Performance on capital market: percentage obtained as difference between closing price at 31 December of current year and closing price at 31 December of previous year as well as closing price at 30/9/2014 and closing price at 31 December 2013

0.00 50.00 100.00 150.00 1,000 2,000 3,000 4,000 5,000 6,000 EUR Points

ATGR-R-A vs CROBEX

CROBEX ATGR-R-A

30/09/2014 31/12/2013 Last price 137.3 95.7 Market capitalization* (in EUR millions) 457.9 319.2 Valuation 1H2014 Last price (30/09/2014) 137.3 Market capitalization* (in EUR millions) 457.9 Average daily turnover (in EUR thousands) 46.3 EV (in EUR millions) ** 734.4 EV/EBITDA** 9.2 EV/EBIT** 12.6 EV/sales** 1.1 EPS (in EUR) 8.5 P/E** 16.2

43% 34% 7%

• 38%

18% 48%

• 47%

8% 2% 1%

• 18%

5% 16%

• 67%

10% 2% 0%

• 15%

9%

• 80%
• 40%

0% 40% 9M 2014 2013 2012 2011 2010 2009 2008

Performance on capital market

ATGR-R-A Crobex Crobex10

CONTENT OVERVIEW OF ATLANTIC GRUPA FINANCIAL OVERVIEW IN H1 2014 FINANCIAL OVERVIEW IN 2013 STRATEGIC GUIDANCE

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FINANCIAL OVERVIEW IN H1 2014

In the first half of 2014, Atlantic Grupa recorded 2.1% higher revenue due to the growth in sales in the SBU Savoury Spreads, the SDU International Markets and the beginning of the Unilever principal distribution in the SDU Croatia and the DU Slovenia. The growth in these units compensated for the lower result of other business segments. If we exclude the effect of new and old principals and unfavourable impacts of movements in exchange rates, the sales remained at the level of the first half of 2013. 3.6% higher EBITDA as a result of :  the growth in sales and  active risk management related to the movements in the price of raw coffee in the global markets. In the first half of 2014, a 5.4% higher EBIT was recorded, whereby the improved operating profitability was achieved primarily due to the impacts above the EBITDA level and due to lower depreciation which is the result of a more efficient management of the existing resources, reducing the need for new investments. 22.7% higher net profit due to:  The impacts above the EBIT level,  Significant decrease in interest expense by 16.5% due to a successful refinancing of long-term borrowings completed at the end of 2012 and  Decrease in the effective tax rate to 13% from the previous year’s 20%. Nevertheless, net foreign exchange gains are significantly lower compared to the same period of the previous year, primarily due to the depreciation of the Serbian dinar.

Key highlights (EURm) H1 2014 H1 2013 H1 2014/H1 2013 Revenues 329.9 323.1 2.1% Sales 327.2 320.5 2.1% EBITDA 40.0 38.6 3.6% EBIT 30.8 29.2 5.4% Net profit 19.1 15.6 22.7% EBITDA margin 12.2% 12.0% +17 bp EBIT margin 9.4% 9.1% +29 bp Net profit margin 5.8% 4.9% +98 bp

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PERFORMANCE BY STRATEGIC BUSINESS UNITS AND STRATEGIC DISTRIBUTION UNITS

* Other segments include SDU HoReCa, SDU CIS, BU Baby Food, DU Macedonia and business activities not allocated to business and distribution units (headquarters and support functions in Serbia, Slovenia and Macedonia) which are excluded from the reportable operating segments. ** Line item “Reconciliation” relates to the sale of own brands which is included in the appropriate SBU and BU and in SDUs and DUs through which the products were distributed. *** In 2014 the classification of contracted marketing expenses has changed from “Marketing and selling expenses” to decrease in “Sales revenues”, and classification of support for contracted marketing expenses has changed from decrease in “Marketing and selling expenses” to decrease in “Cost of merchandise sold”. In accordance with these changes, sales revenue (referring to sales from distribution company Atlantic Trade Zagreb) for segment information for the six month period ended 30 June 2013 has also been restated, but no restatement has been made for sales revenue referring to SBU Savoury Spreads on markets outside the region and BU Baby Food due to immateriality.

(EUR 000) H1 2014 H1 2013*** H1 2014/ H1 2013 SBU Beverages 42 44 (4.0%) SBU Coffee 64 67 (5.5%) SBU (Sweet and Salted) Snacks 37 39 (4.1%) SBU Savoury Spreads 29 28 5.8% SBU Sports and Functional Food 53 55 (2.8%) SBU Pharma and Personal Care 32 32 (0.4%) SDU Croatia 54 47 14.7% SDU Serbia 68 73 (7.1%) SDU International markets 39 38 3.4% DU Slovenia 45 36 22.6% Other segments* 52 52 (0.4%) Reconciliation** (189) (192) n/p Sales 327 320 2.1%

(in EUR millions) H1 2014 H1 2013 H1 2014/ H1 2013 SBU Beverages 8.5 8.0 5.8% SBU Coffee 16.0 13.5 18.2% SBU (Sweet and Salted) Snacks 6.7 7.0 (3.7%) SBU Savoury Spreads 7.8 6.5 20.8% SBU Sports and Functional Food 1.7 2.0 (14.9%) SBU Pharma and Personal Care 2.6 3.0 (12.1%) SDU Croatia 1.3 0.9 46.3% SDU Serbia 1.4 2.1 (30.3%) SDU International markets 0.7 1.6 (54.2%) DU Slovenia 1.4 1.7 (15.4%) Other segments* (8.2) (7.5) 9.0% Group EBITDA 40.0 38.6 3.6%

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FINANCIAL INDICATORS IN H1 2014

 The company's focus on a continued deleveraging  Overview of capital expenditure:  SBU Coffee: purchase of espresso machines and Coffee 2 Go machines, investment in the transport system for ground coffee,  SBU Snacks: investment in the line for the production of fillings, purchase of production equipment for the production of chocolate bars,  SBU Sports and Functional Food: investment in the production plant for the production of bars in Nova Gradiška,  SDU Croatia and SDU Slovenia: investments related to taking over the distribution of Unilever (IT, warehouses, offices).

Capital and reserves 34.2% Long term borrowings 32.8% Short term borrowings 8.3% Bond 2.2% Trade and other payables 16.2% Other liabilities 6.4%

Equity and liabilites structure as at 30/06/2014 (in EUR millions) H1 2014 2013 Net debt 268.1 274.6 Total assets 690.0 677.7 Total Equity 235.7 223.3 Current ratio 1.7 1.8 Gearing ratio 53.2% 55.2% Net debt/EBITDA* 3.3 3.5 H1 2014 H1 2013 Interest coverage ratio 4.4 3.6 Capital expenditure 8.1 4.2 Cash flow from operating activities 13.5 22.8

CONTENT OVERVIEW OF ATLANTIC GRUPA FINANCIAL OVERVIEW IN H1 2014 FINANCIAL OVERVIEW IN 2013 STRATEGIC GUIDANCE

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PERFORMANCE BY STRATEGIC BUSINESS UNITS AND STRATEGIC DISTRIBUTION UNITS

* Sales and profitability shown according to AG’s business model valid in 2012 and 2013. Other segments include SDU HoReCa, Russian market and non-allocable business activities (headquarters and support functions in Serbia, Slovenia and Macedonia) which are excluded from the reportable operating segments. SDU International Markets’ sales and profitability is presented within SBU to which they relate. The Russian market includes only the baby food product range sales under the Bebi brand. ** Line item “Reconciliation” relates to the sale of own brands which is included in the appropriate SBU and in SDUs through which the products were distributed. *** Sales correspond to figures shown in 2013 Audit Report. In 2014, the classification of contracted marketing expenses has changed from “Marketing and selling expenses” to decrease in “Sales revenues”, and classification of support for contracted marketing expenses has changed from decrease in “Marketing and selling expenses” to decrease in “Cost of merchandise sold”. This reclassification decreases above presented sales by EUR 6 million in 2013 and EUR 5.5 million in 2012. EUR millions 2013 2012 2013/2012 SBU Beverages 87 90 (3.0%) SBU Coffee 145 145 (0.3%) SBU (Sweet and Salted) Snacks 82 80 2.8% SBU Savoury Spreads 61 62 (1.0%) SBU Sports and Functional Food 104 91 14.9% SBU Pharma and Personal Care 67 64 5,1% SDU Croatia 108 117 (8.0%) SDU Slovenia, Serbia, Macedonia 258 257 0.4% Other segments* 56 50 13.5% Reconciliation** (296) (298) (0.8%) Sales 674 657 2.5% (EUR millions) 2013 2012 2013/2012 SBU Beverages 16.3 18.3 (10.8%) SBU Coffee 31.8 20.9 52.3% SBU (Sweet and Salted) Snacks 14.9 15.4 (3.0%) SBU Savoury Spreads 16.4 16.4 0.4% SBU Sports and Functional Food 3.0 1.9 57.5% SBU Pharma and Personal Care 6.4 7.6 (16.3%) SDU Croatia 2.0 1.7 20.8% SDU Slovenia, Serbia, Macedonia 11.0 11.3 (2.3%) Other segments* (23.2) (18.9) 22.3% Group EBITDA 78.8 74.5 5.8%

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NET PROFIT IN 2013

1.8 times higher net profit due to:  Significant decrease in interest expense amid successful refinancing of long-term borrowings completed at the end of 2012.  More favourable movements in foreign exchange rates, which decreased the previous year’s net foreign exchange losses arisen primarily due to the depreciation of the Serbian dinar.  Negative impact had the significant increase in effective tax rate to 21% from the previous year’s 6% due to the last year recognised deferred tax asset based on the expected utilisation of tax losses.

*Normalized

10 20 30 40 50 2013 2012 27 9 27 15 Net profit Normalized Net profit EURm (in EUR 000) 2013 % of sales 2012* % of sales 2013/2012 EBIT 56,616 8.4% 53,230 8.1% 6.4% Interest expenses, net (21,235) (3.2%) (28,716) (4.4%) (26.1%) Net FX differences (1,627) (0.2%) (8,525) (1.3%) (80.9%) EBT 33,754 5.0% 15,990 2.4% 111.1% Current tax (5,698) (0.8%) (3,463) (0.5%) 64.5% Deferred tax (1,523) (0.2%) 2,468 0.4% n/a Net income 26,532 3.9% 14,994 2.3% 76.9% Minority interest (550) (0.1%) (1,451) (0.2%) (62.1%) Net income II 25,983 3.9% 13,543 2.1% 91.8%

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FINANCIAL INDICATORS IN 2013

 The company's focus on a continued deleveraging  Overview of capital expenditure:  SBU Coffee: automation of the line for coffee and purchase of espresso and Coffee 2 Go machines,  SBU Snacks: investment in the flips packaging machine, investment in the equipment for the production of pellets and purchase of line for the production of fillings,  SBU Beverages: investment in the line for packaging multi-packs of Donat Mg, investment in the equipment for the production of the Donat Mg new bottle, purchase of automated line for packaging Cedevita granules,  SBU Pharma and Personal care: refurbishment of pharmacies and specialised stores and  Other: investments related to the HRIS system (human resources information system) and the project of developing, implementing and relocating the regional data centre in Zagreb.

* Normalized in 2012

Capital and reserves 32.9% Long term borrowings 36.5% Short term borrowings 7.6% Bond 2.3% Trade and other payables 14.5% Other liabilities 6.2%

Equity and liabilities structure as at 31/12/2013 (in EUR millions) 2013 2012 Net debt 274.6 313.8 Total assets 677.7 686.6 Total Equity 223.3 194.8 Current ratio 1.8 1.8 Gearing ratio 55.2% 61.7% Net debt/EBITDA* 3.5 4.2 Interest coverage ratio* 3.7 2.6 Capital expenditure 13.3 10.5 Cash flow from operating activities 56.0 39.5

CONTENT OVERVIEW OF ATLANTIC GRUPA FINANCIAL OVERVIEW IN H1 2014 FINANCIAL OVERVIEW IN 2013 STRATEGIC GUIDANCE

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STRATEGIC GUIDANCE FOR 2014

Strategic management guidance

 Focus on organic business growth through active brand management with a special emphasis on strengthening the position of regional brands (Cockta, Cedevita, Smoki, Grand Kafa, Barcaffe, Bananica, Štark) and brands with international potential (Multipower, Argeta, Donat Mg, Bebi, Cedevita GO!);  Strengthening the regional character of distribution through the extension of the principals’ brands portfolio;  Active development of the regional HoReCa segment with a portfolio that covers '24/7 consumer needs' and other sale channels (Online, Etno channel);  Rationalisation of operations, cost management and optimisation of business processes on all operating levels aimed at improving operating efficiency;  Active monitoring of trends and hedging the price of raw coffee and other raw materials;  Regular settlement of existing financial liabilities with an active management of debt and financial expenses; and  Prudent liquidity management and further deleveraging.  Sales: 3% sales growth at the organic level and sales from the distribution of the Unilever product range of EUR 32 million.  Capital expenditure at EUR 29 million, 46% of which relates to the investment in the new factory of energy bars in Nova Gradiška.  The expected effective tax rate in 2014 should be at the 2013 level.

(in EUR millions) 2014 Guidance 2013 2014/2013 Sales 725 674 7.7% EBITDA 83 79 4.9% EBIT 61 57 8.3% Interest expense 19 21 (12.1%)

CONTACT

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Atlantic Grupa d.d. Miramarska 23 10 000 Zagreb Croatia

• Tel. +385 1 2413 908, +385 1 2413 931

E-mail: ir@atlanticgrupa.com