Financial re resul ults ts in in 20 2015 15 (un unaudi - - PowerPoint PPT Presentation

Financial re resul ults ts in in 20 2015 15

(un unaudi udited) ed)

Zagreb, February 22nd 2016

Significant revenue and net profit growth

CONTENT

2

KEY DEVELOPMENTS IN 2015 PERFORMANCE ON CAPITAL MARKET IN 2015 FINANCIAL RESULTS IN 2015 GUIDANCE FOR 2016 APPENDIX

KEY BUSINESS DEVELOPMENTS IN 2015

3

• Performance in line with guidance despite challenging macroeconomic conditions
• Significant decrease of financial debt and increase of cash flow from operating activities
• Development of own brands and opening of new pharma locations
• Integration of Foodland and production start in Nova Gradiška bars factory
• Risk management and consolidation of IT solutions
• Reorganization of the distribution business
• Restructuring and reorganization of Sports and Functional food and sale of the tea business

KEY BUSINESS DEVELOPMENTS: PRINCIPAL BRANDS

4

DISTRIBUTION

 Reorganization of distribution business  New distributive contracts

BUSINESS OPERATIONS CORPORATE SUPPORT FUNCTIONS

BUSINESS UNITS DISTRIBUTION UNITS FINANCE CORPORATE ACTIVITIES

SBU Coffee SBU Sports and Functional Food SBU Beverages SBU Snacks SBU Pharma & Personal Care SBU Savoury Spreads BU Gourmet ZONE EAST SDU Croatia SDU Serbia DU Slovenia DU Macedonia SDR HoReCa SDR Baltic & CIS BU Baby Food ZONE WEST SDR DACH & Benelux DR Mediterranean & Africa DR Northwest Europe & Australia PDR Central Europe & Overseas PDR Kosovo, Bulgaria, Romania

SBU – Strategic distribution unit BU – Business unit SDU – Strategic distribution unit DU – Distribution unit SDR – Strategic distribution unit DR – Distribution region PDR – Partner distribution region DACH – Germany, Austria & Switzerland

KEY BUSINESS DEVELOPMENTS: REORGANIZATION OF THE DISTRIBUTION

5

KEY BUSINESS DEVELOPMENTS: OWN BRANDS

6

SBU BEVERAGES

 Rebranding and new flavours of Cedevita  New products: Cockta black tonic, Monstea tea  Clinically proven effect of Donat Mg  Innovative Cedevita Vitamins point

SBU COFFE

 Launched an innovative product BLACK’N’EASY, by taste traditional Turkish coffee, and by the way of preparation instant coffee

KEY BUSINESS DEVELOPMENTS: OWN BRANDS

7

SBU SAVOURY SPREADS

 Redesign of Argeta and new „easy peel” packaging  New flavour Sardina Adriatica  Three new flavours of Argeta Exclusive Chef's Selection

SBU SNACKS

 Najlepše želje won „Superior Taste Award”  Launched a subbrand of Najlepše želje  Sweeet redesign and numerous new products

SBU PHARMA AND PERSONAL CARE

 Launched a new generation

• f Plidenta with „Croatian

Creation” authentication  Redesign of Rosal  Opened four new specialized stores

KEY BUSINESS DEVELOPMENTS: OWN BRANDS

8

BU BABY

 Completed redesign of Bebi products  New products in segment

• f children’s cereal

BU GOURMET

 Complete integration in Atlantic Grupa  Restructuring and investment cycle  Formed as a special business area

SBU SPORTS AND FUNCTIONAL FOOD

 Start of the bars production in the new factory  Multipower redesign and launch of new products  Restructuring and reorganization

KEY BUSINESS DEVELOPMENTS: MARKET SHARE AND REWARDS

9

Market ket share Barca caffe/ e/ Grand kafa Argeta eta Smoki ki Cedev evit ita Value share 2015. 2014. 2015. 2014. 2015. 2014. 2015. 2014. Croatia 13.3% 3% 10.4% 23.1% 1% 17.3% 18.2% 2% 17.2% 79.7* 7* 79.1% Serbia 52.0% 51.3% 20.4% 19.3% 57.4% 56.7% 73.0% 72.2% Slovenia 75.9% 76.3% 41.0% 41.8% 41.6% 43.0% 84.7* 80.9% B&H

• 50.3%

50.1% 39.1% 39.1% 77.4% 79.3%

Source: Nielsen Retail Panel for food and non-food: January – November 2015 *Source: Nielsen Retail Panel for food and non-food: January – August 2015

Top 10 in region gion 1 Milka 2 Coca Cola 3 Vegeta 4 Cedev evit ita 5 Smoki ki 6 Argeta eta 7 Orbit 8 Cockt kta 9 Nivea 10 Jana

Source: Valicon research

1. The best managed company in Croatia 2. The second best managed company in Central and Eastern Europe 3. The best managed company in the food and beverages sector in Central and Eastern Europe

CONTENT

10

KEY DEVELOPMENTS IN 2015 PERFORMANCE ON CAPITAL MARKET IN 2015 FINANCIAL RESULTS IN 2015 GUIDANCE FOR 2016 APPENDIX

PREFORMANCE ON CROATIAN CAPITAL MARKET

11

• 11.5%

30.9% 34.0% 7.2%

• 37.9%

18.2% 47.7%

• 47.4%
• 2.9%
• 2.7%

3.1% 0.0%

• 17.6%

5.3% 16.4%

• 67.1%
• 1.1%

1.2% 2.4%

• 0.5%
• 15.4%

9.5%

• 80%
• 40%

0% 40% 2015. 2014. 2013. 2012. 2011. 2010. 2009. 2008. ATGR-R-A Crobex Crobex10

Valuati tion

• n

2015 15 2014 Last st price e in repor

• rti

ting g period

• d

832. 2.9 940.0 Market capi pita talizati tion

• n* (in HRK millions)

2,777. 777.1 3,134.2 Average ge daily turnover er (in HRK K thou

• usands)

s) 380. 0.1 299.5 EV (in HRK millions) 4,457. 457.7 5,064.3 EV/EB EBITDA 7.9 8.5 EV/EB EBIT 11.0 11.5 EV/sa sales es 0.8 1.0 EPS (in HRK) 72.7 60.0 P/E 11.5 .5 15.7

*Closing price multiplied by the total number of shares

Tedeschi Emil 50.2% EBRD 6.0% Tedeschi Fiorio Lada 5.8% Management 1.1% Other 11.7% Raiffeisen OMF 9.7% AZ OMF 3.9% Erste Plavi OMF 5.9% PBZ CO OMF 2.9% Raiffeisen DMF 1.4% Other pension funds 1.3% Pension funds 25.2%

 Average daily turnover on ZSE increased by 27%  Stable shareholder structure  DEG sold its’ ownership share  Free float of 38%

CONTENT

12

KEY DEVELOPMENTS IN 2015 PERFORMANCE ON CAPITAL MARKET IN 2015 FINANCIAL RESULTS IN 2015 GUIDANCE FOR 2016 APPENDIX

RESULTS IN LINE WITH GUIDANCE

13

100 200 300 400 500 600 700

EBITDA EBIT 567 404 565 405 597 441

2015A 2015E 2014A

2015A/2015E: 102.0 2015A/2014A: 105.6 2015A/2015E: 100.4 2015A/2014A: 95.0 2015A/2015E: 99.7 2015A/2014A: 91.7

4,400 4,600 4,800 5,000 5,200 5,400

Sales 5,405 5,300 5,118

2015A 2015E 2014A

SALES BY STRATEGIC BUSINESS UNITS AND STATEGIC DISTRIBUTION UNITS

14  SBU Beverages: increase in all segments (retail, on the go, HoReCa), supported by introducing new (new flavours of Cedevita and candies, Cockta Black Tonic) and redesign of existing products.  SBU Coffee: revenue growth on almost all markets coupled with growth

• f market shares, despite the decline of the category on the regional

markets.  SBU Snacks: revenue increase because of chocolate and chips growth

• n all significant regional markets.

 SBU Savoury Spreads: increase both in region and on international markets coupled with the highest market share of Argeta in history in Switzerland and Austria (sales of Foodland amounted to HRK 41.9 million).  SBU Sports and Functional Food: sales declined in German, Russian and Scandinavian market (Champ and Multaben), increased in United Kingdom, Switzerland and Spain.  SBU Pharma and Personal Care: increase of OTC sale of Farmacia chain and also growth of Melem.  SDU Croatia and SDU Slovenia: increase of own and principal brands.  SDU Serbia: own brands sales increase and the new principals distribution.  SDU International markets: growth of sales in Savoury spreads and Beverages segment, with decline of Sports and functional food.

* 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 HRK thous usand ands) 2015 2015 2014 2014 2015/2014 SBU Beverag ages 666,075 638,817 4.3% SBU Coffe fee 1,084,926 1,026,680 5.7% SBU (Sweet and Salted) d) Snack cks 631,5 ,553 53 614,426 2.8% SBU Savour ury Spreads 538,231 471,385 14.2% SBU Sports and Functional ional Food 768,428 779,075 (1.4%) SBU Pharma a and Persona nal l Care 509,615 493,345 3.3% SDU Croat atia ia 938,311 844,252 11.1% SDU Serbia ia 1,175,100 1,083,149 8.5% SDU Inter ernat national ional markets 589,913 582,426 1.3% DU Slovenia nia 761,8 ,868 68 725,487 5.0% Other segment nts* 780,058 820,504 (4.9%) Reconc ncilia iliatio ion* n** (3,038,766) (2,961,173) n/a Sales 5,405,312 5,118,373 5.6%

SALES BY MARKETS AND SEGMENTS

15

Croatia 26.1% Serbia 23.2% Slovenia 15.8% Bosnia and Herzegovina 7.1% Other regional markets* 6.0% Key European markets** 11.2% Russia and CIS 4.4% Other markets 6.2%

2015

Croatia 25.1% Serbia 22.4% Slovenia 15.8% Bosnia and Herzegovina 7.0% Other regional markets* 6.1% Key European markets** 11.4% Russia and CIS 5.7% Other markets 6.5%

2014

* Macedonia, Montenegro, Kosovo ** Germany, United Kingdom, Italy, Switzerland, Austria, Sweden, Spain

Principalski brendovi 17.7% Sport and Functional Food 15.2% Pharma & Personal care 9.6% Coffee 20.1% Sweet and salted snacks 12.0% Savoury spreads 9.2% Beverages 12.5% Baby food 3.7% Principal brands 19.7% Sports and Functional Food 14.2% Pharma & Personal care 9.1% Coffee 20.1% Sweet and salted snacks 11.7% Savoury spreads 10.0% Beverages 12.3% Baby food 2.9%

SALES PROFILE BY MARKETS (I)

16

 Croatia: higher sales due to (i) growth of own brands – Cedevita, Barcaffe, Argeta and revenue growth in Farmacia and (ii) revenue increase from sales from existing principals (Hipp, Ferrero, Rauch, Unilever).  Serbia: increase due to (i) integration of Foodland, (ii) revenue growth from own brands (Grand kafa and Najlepše želje) and (iii) beginning of distribution of new principal Rauch.  Slovenia: growth in sales of Barcaffe and Black&Easy coffee, Donat Mg, Cedevita and Ferrero principal.  Bosnia and Herzegovina: sales increase of own brands, primarily Grand kafa, Cedevita, Argeta and products from Foodland portfolio.  Other regional markets* (Macedonia, Montenegro, Kosovo): growth in Macedonia and Kosovo due to sales of Bakina tajna, Argeta, Cedevita and principal Ferrero.

• 200.00

400.00 600.00 800.00 1000.00 1200.00 1400.00 1600.00 Croatia Serbia Slovenia Bosnia and Herzegovina Other regional markets* 1,409.0 1,256.3 855.0 381.7 325.2 1,285.1 1,145.2 809.1 357.3 312.7 (in HRKm) 2015 2014

+9.6% 6% +9.7% 7% +5.7% 7% +6.8% 8% +4.0% 0%

SALES PROFILE BY MARKETS (II)

17  Key European markets* (Germany, United Kingdom, Italy, Switzerland, Austria, Sweden, Spain): sales increase in Switzerland, Austria, United Kingdom, Spain and Sweden more than compensated the sales decline on German and Italian markets.  Russia and CIS: significant drop in sales due to political and macroeconomic instability and high depreciation of rouble (effect amounts to HRK40 million) and political instability in Ukraine (decline in sales by 67.1% to HRK6.7 million).  Other markets: slight increase in revenues mostly because of sales of Foodland portfolio products.

• 100.00

200.00 300.00 400.00 500.00 600.00 700.00 800.00 Key European markets* Russia and Commonwealth of Independent States Other markets 603.4 237.1 337.6 584.5 289.6 334.9 (in HRKm) 2015 2014

+3.2% 2%

• 18.

8.1% 1% +0.8% 8%

SALES PROFILE BY CATEGORIES

18

Own brands 65.3% Principal brands 19.7% Private label 8.7% Farmacia 6.2%

2015

Own brands 67.0% Principal brands 18.0% Private label 8.8% Farmacia 6.2%

2014

• Own brands:

 Increase of 2.9% due to sales increase of: (i) Barcaffe and Grand Kafa, (ii) Cedevita, (iii) Argeta, (iv) Najlepše želje and Chipsos and (v) Foodland portfolio.  Lower revenue was recorded by: (i) Champ, Multaben and Multipower in Sports and functional food segment and (ii) Bebi in Baby food segment.  If we exclude positive influence of Foodland and negative influence of decline of revenue brands from Sport and functional food segment and negative influence from Russia and CIS markets, own brands increased by 4,.5%.

• Principal brands:

 Strong increase of 15.8% due to sales increase of existing principals (mostly Ferrero, Hipp, Rauch, Alkaloid and L’Oreal).

• Private label:

 Increase of 4.9% due to sales increase in Sports and functional food segment.

• Farmacia:

 Increase of 6.8% because of OTC sales.  On December 31st 2015 Farmacia contains 48 pharmacies and 29 specialized stores (4 new ones).

100.0 160.0 220.0 280.0 340.0 400.0 460.0 520.0 580.0 640.0 EBITDA EBIT Net profit/(loss) 567.3 404.0 242.5 597.0 440.7 213.4 2015 2014

PROFITABILITY DYNAMICS IN 2015

19

 13 13.6% high gher net gain in:  Improvement of business processes and continuous main raw materials hedging  Net loss from exchange difference due to strong depreciation of Russian rouble and Serbian dinar are significantly reduced in compare to previous year  Significantly decrease in interest cost by 16% as a result of continuous lowering of the financial indebtedness

• 5.0%

0%

• 8.3%

3% +13. 3.6% 6%

OPERATING RESULTS OF SBUs I SDUs IN 2015

20

• SBU

Beverages: Growth in sales revenues from Cedevita, better sales mix and lower cost of production materials.

• SBU Coffee: despite the higher sales, significant growth
• f coffee prices drove down the profitability.
• SBU Snacks: profitability decline despite growth of

revenues, due to increased rebates and negative impact of dinar devaluation.

• SBU

Savoury Spreads: Despite

• rganic

growth

• f

revenues, decline in profitability due to consolidation of Foodland.

• SBU

Sports and Functional Food: Revenue and profitability decline because of business restructuring.

• SBU Pharma and Personal Care: Revenue increase

together with personnel and rent expense due to new specialized stores opening.

• SDU Croatia: Revenue growth from own and principal brands and lower costs due to process optimization and efficiency improvement.
• SDU Serbia: The increase in profitability as a consequence of sales growth, which entirely compensated the negative effects of the Serbian dinar

depreciation.

• SDU International markets: The decrease in profitability caused by investing in sales infrastructure i.e. new personnel (mostly in Germany and Austria), and

the decrease in the Sports and functional food sales.

• DU Slovenia: The growth in profitability as a result of increased sales and improved gross profit margin based on the product mix.

* Other segments include SDU HoReCa, SDU CIS, BU Baby food, DU Macedonia and business activities which are not allocated on business and distributive areas (administrative headquarters and service support in Serbia, Slovenia and Macedonia) and are excluded from reporting operative segments.

(in HRK millio llions ns) 2015 2015 2014 2015/2014 SBU Beverag ages 156.4 126.7 23.4% SBU Coffe fee 211.4 225.8 (6.4%) SBU (Sweet and Salted) ed) Snacks 97.9 98.5 (0.6%) SBU Savour ury Spreads 99.6 105.9 (6.0%) SBU Sports and d Funct ctio ional nal Food (11.4) 4) 16.0 (171.1%) SBU Pharma a and Persona nal l Care 42.8 49.0 (12.7%) SDU Croat atia ia 23.2 15.6 48.9% SDU Serbia ia 31.8 31.8 28.4 11.9% SDU Inter ernat national ional markets 4.3 14.8 (71.1%) DU Slovenia nia 42.1 36.4 15.7% Other segm gment nts* (130.7 .7) (120.0) (8.9%) Group EBITDA 567.3 597.0 (5.0%)

OPERATING COSTS STRUCTURE IN 2015

21  Cost of goods sold: growth because of sales increase while share of COGS in sales revenue remained unchanged.  Costs of production materials: increase of raw coffee prices and higher sales. The impact of raw coffee prices growth was significantly reduced by hedging. Positive impact came from sugar, powdered milk, fat, oil and packing expenses, which compensated for higher cocoa prices.  Costs of services: increase due to higher IT investments, implementation of SAP system and SALMEX project and higher costs of consultancy services.  Staff costs: higher number of employees as a result of the opening of the new energy bars factory in Nova Gradiška (83 employees) and integration of

• Foodland. On December 31st 2015, Atlantic Grupa had 5.387 employees, of which 155 relate to Foodland.

 Marketing expenses: insignificant increase primarily due to savings made in the Pharma and personal care, Beverages and Coffee segments, that fully compensated for the increase in marketing expenses in the Savoury spreads segment.  Other operating expenses are higher by 5.4% primarily due to a higher inventory write-off, mostly related with restructuring in Sports and functional food segment.  Other (gains)/losses – net: Gains were realised primarily on financial (forward) instruments in the Coffee segment and from the sale of tea business.

(in HRK millio llions ns) 2015 2015 % of sales 2014 % of sales 2015/2014 Cost of goods sold 1,483 83.8 27.5% 1,405 05.2 27.5% 5.6% Chan ange in invent entory 1.2 1.2 0.0% (30.0) 0) (0.6%) n/a Produc uction ion materials ials 1,729 29.2 32.0% 1,559 59.7 30.5% 10.9% Energy 62.3 1.2% 61.2 1.2% 1.6% Services es 374.1 6.9% 359.2 7.0% 4.2% Staff f costs 767.8 14.2% 704.4 13.8% 9.0% Marketing ing and sellin ling expenses es 332.8 6.2% 331.6 6.5% 0.4% Other operatin ing expenses es 196.6 3.6% 186.4 3.6% 5.5% Other gains ins/(lo losses es), net (64.0) (1.2%) (6.3) (0.1%) n/a Deprecia iation n and amortis isatio ion 163.3 3.0% 156.3 3.1% 4.5% Total l operatin ing expenses es 5,047.0 93.4% 4,727.9 92.4% 6.7%

PRICE DYNAMICS OF RAW COFFEE IN 2015

22

 During 2015 the average prices

• f

raw coffee in the global commodity markets, depending

• n the type of raw coffee, were

higher 14% to 29%.  Growth is a result of prolonged draught period in Brazil, Ethiopia and Columbia, which prevented recovery

• f

coffee yields in regard of last year and low level of raw coffee stocks transferred from 2014.  In 2016 we expect lower average raw coffee prices comparing to 2014 coupled with negative influence

• f

stronger dollar.

FINANCIAL INDICATORS IN 2015

23

(in HRK millio llions ns) 2015 2015 2014 Net debt 1,678.1 1,927.7 Total l assets ets 5,294.6 5,274.3 Total l Equity 1,945 45.3 1,755.1 Current ent ratio io 1.3 1.5 Gearing ing ratio io 46.3% 52.3% Net debt/EBI BITDA 3.0 3.2 Inter erest coverag age e ratio io 5.4 4.7 Capit ital al expendit iture 115.5 190.1 Cash h flow from operatin ing g activ ivit itie ies 470.8 445.7

Capitals and reserves; 36.3% Long term borrowings; 23.9% Short term borrowings; 12.3% Bond; 2.1% Trade and other payables; 19.5% Other liabilities; 5.9%

 Continuous focus on further deleveraging (net debt decrease of HRK 249.7 millions and ratio of net debt and EBITA to 3.0)  Capital investments declined compared to 2014 when the construction of manufacturing plant in Nova Gradiška started  With increase of 5.6% in regard to 2014, cash flow from operating activities is growing faster than EBITDA, indicating stability of the business model

CONTENT

24

KEY DEVELOPMENTS IN 2015 PERFORMANCE ON CAPITAL MARKET IN 2015 FINANCIAL RESULTS IN 2015 GUIDANCE FOR 2016 APPENDIX

STRATEGIC GUIDANCE FOR 2015

25  In 2016, we expect capital expenditure in the amount of around HRK 150 million.  The expected effective tax rate in 2016 should be at the level of the statutory tax rate for Croatia.

Strategic management guidance

 Focus on (i) stronger internationalisation of brands with international potential (Multipower, Argeta, Donat Mg, Bebi, Cedevita, Granny’s Secret), (ii) strengthening the position of regional brands (Cockta, Cedevita, Smoki, Grand Kafa, Barcaffe, Najlepše želje, Chipsos), (iii) active development of the regional HoReCa portfolio, and (iv) further restructuring of the business unit sports and functional food.  Special efforts will be placed into listing and positioning of own brands into retail channel in Germany and Austria and on marketing activities on those markets.  The management of Atlantic Grupa in 2016 expects lower average prices of raw coffee in the global commodity markets and an unfavourable effect of the EURUSD exchange rate that management plans to largely annul by active hedging and continuous cost management and business processes optimisation.  Additional pressures on operations arise from discontinuation of cooperation with the biggest private brand buyer in Sports and functional food (with whom was in 2015 realized 350 HRK millions annual sales), continuation of crisis in Russia and Ukraine and further depreciation of rouble.

(in HRK mill llions ions) 2016 Guid idanc nce 2015 2016/2015 Sales es 5,400 00 5,405 (0.1%) EBIT ITDA 475 475 567 (16.3%) EBIT IT 310 310 404 (23.3%) Inter eres est expens pense 100 100 106 (5.4%)

CONTENT

26

KEY DEVELOPMENTS IN 2015 PERFORMANCE ON CAPITAL MARKET IN 2015 FINANCIAL RESULTS IN 2015 GUIDANCE FOR 2016 APPENDIX

CONSOLIDATED INCOME STATEMENT FOR 2015

27 (in HRK thous

• usan

ands) s) 2015. 15. % sales es 2014. 14. % sales es Turnov

• ver

5,450, 450,955 955 100. 0.8% 8% 5,168, 168,639 639 101. 1.0% 0% Sales es revenues es 5,405, 405,312 312 100.0% 0.0% 5,118, 118,373 373 100.0% 0.0% Other revenues 45,643 0.8% 50,266 1.0% Operati ting expen enses ses 4,883, 883,678 678 90.3% 3% 4,571, 571,607 607 89.3% 3% Cost of merchandise sold 1,483,783 27.5% 1,405,210 27.5% Change in inventories 1,166 0.0% (29,964) (0.6%) Production material and energy 1,791,442 33.1% 1,620,958 31.7% Services 374,120 6.9% 359,211 7.0% Staff costs 767,779 14.2% 704,437 13.8% Marketing and selling expenses 332,773 6.2% 331,605 6.5% Other operating expenses 196,602 3.6% 186,434 3.6% Other – net (63,986) (1.2%) (6,284) (0.1%) EBITDA 567, 7,27 276 10.5% 5% 597, 7,03 032 11.7% 7% Amortization and depreciation 163,298 3.0% 156,330 3.1% EBIT 403, 3,97 979 7.5% 5% 440, 0,70 703 8.6% 6% Financial income 105,667 2.0% 125,861 2.5% Financial expenses (9,215) (0.2%) (62,156) (1.2%) Net FX differences 289, 9,09 096 5.3% 3% 252, 2,69 691 4.9% 9% EBT 46,573 0.9% 39,289 0.8% Current tax 242, 2,52 523 4.5% 5% 213, 3,40 402 4.2% 2% Deferred tax 232 0.0% 13,389 0.3% Net incom

• me

242, 2,29 291 100. 0.8% 8% 200, 0,01 013 101. 1.0% 0%

CONSOLIDATED BALANCE SHEET AS AT DECEMBER 31ST 2015

28

(in HRK K thousa sands) s) 31 Decem ember r 2014 % of total asset ets 31 Decem ember r 2013 % of total asset ets Property, plant and equipment 1,083,566 20.47% 1,099,289 20.84% Investment property 1,748 0.03% 1,363 0.03% Intangible assets 1,797,792 33.96% 1,804,518 34.21% Available-for-sale financial assets 959 0.02% 942 0.02% Trade and other receivables 83,695 1.58% 22,657 0.43% Deferred tax assets 37,066 0.70% 41,224 0.78% Non Non-curr rren ent asset ets 3,004,824 56.75% 2,969,994 56.31% Inventories 603,491 11.40% 582,247 11.04% Trade and other receivables 1,205,042 22.76% 1,192,030 22.60% Non-current assets held for sale 99,196 1.87% 99,874 1.89% Prepaid income tax 16,018 0.30% 12,249 0.23% Deposits given 305 0.01% 275 0.01% Cash and cash equivalents 365,692 6.91% 417,588 7.92% Curr rren ent asset ets 2,289,744 43.25% 2,304,263 43.69% Tot

• tal asset

ets 5,294,568 100.00% 5,274,257 100.00% Capital and reserv serves es attri ribu butabl ble e to owners ers of the e Com

• mpany

1,942,750 36.69% 1,752,732 33.23% Non Non-con

• ntro

rolling g intere rest st 2,558 0.05% 2,332 0.04% Borrowings 1,309,180 24.73% 1,776,406 33.68% Deferred tax liabilities 176,677 3.34% 181,155 3.43% Derivative financial instruments 472 0.01% 8,698 0.16% Other non-current liabilities 3,460 0.07% 25 0.00% Provisions 54,475 1.03% 51,937 0.98% Non Non-curr rren ent liabilities es 1,544,264 29.17% 2,018,220 38.27% Trade and other payables 988,554 18.67% 881,451 16.71% Borrowings 742,032 14.01% 578,482 10.97% Current income tax liabilities 17,034 0.32% 7,675 0.15% Derivative financial instruments 5,091 0.10% 4,713 0.09% Provisions 52,286 0.99% 28,651 0.54% Curr rren ent liabilities es 1,804,997 34.09% 1,500,973 28.46% Tot

• tal liabilities

es 3,349,261 63.26% 3,519,193 66.72% Tot

• tal equity

y and liabilities es 5,294,568 100.00% 5,274,257 100.00%

CONSOLIDATED CASH FLOW STATEMENT FOR 2015

29

(in HRK thousa sands) Jan - Dec 2015 Jan - Dec 2014 2014 Cash h flows s from

• m oper

erating g activi vities es Net cash flow from operating activities before interest and income tax paid 623,058 610,868 Interest paid (105,664) (125,861) Income tax paid (46,573) (39,289) Net cash flow from

• m oper

erating g activi vities es 470,821 445,718 Cash h flow from

• m invest

sting g activi vities es Purchase of tangible and intangible assets (115,534) (190,100) Proceeds from sale of property, plant and equipment 4,470 6,481 Advance for acquisition of subsidiary (5,295) (5,332) Acquisition of available-for-sale financial assets Proceeds from sale of assets available for sale 3,785 Loans and deposits given – net (31,468) (4,486) Interest received 4,637 4,511 Net cash flow used in investi esting g activities es (139,40 ,405) (188,92 ,926) Cash h flow from

• m financing activi

vities es Purchase of treasury shares (4,304) (502) Proceeds from borrowings, net of fees paid 125,532 293,101 Repayment of borrowings (462,186) (322,782) Dividend paid to non-controlling interests Withholding tax paid on dividend within the Group Acquisition of non-controlling interest (93,349) Dividend paid to Company shareholders (40,009) (35,010) Net cash flow used d in financing g activi vities es (380,967) (158,542) Net increa ease se in cash and cash equivalen ents (49,551) 98,250 Exchange ge gains/ s/(losses)

• sses) on cash and cash equiva

valen ents (2,345) (5,997) Cash h and cash equiva valen ents s at begin eginning g of peri riod

• d

417,588 325,334 Cash h and cash equiva valen ents s at end of peri riod

• d

365,692 417,588

Q&A

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