Companyprofile

CONTENT

Introduction by the Management Board President

INA Group at a glance

Overview of 2015 results

Core businesses

Exploration and production of oil and gas

Refining and marketing

Retail

Corporate Social Responsibility

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Introduction by the Management Board President

Year 2015 was a difficult one for the oil and gas industry, with most notable challenge being the 75% crude price drop. Nevertheless, INA managed to provide a 9% increase of CCS EBITDA, which amounted to HRK 3,669 million. Investment projects were continued with HRK 1.7 billion invested of which 84% went to projects in Croatia.

Furthermore, the growth trend in the domestic oil production has been continued with 20% increase compared to 2014.

As the leading investor and exporter in Croatia, in 2016 INA will remain committed to creating added value for its shareholders through strategic investments and further development of existing projects.

Special focus is on the planned investment in the heavy residue upgrade project in Rijeka Refinery with estimated value of over USD 400 million, as well as the continuation of work on the EOR and Međimurje projects, and continuation of modernization and development of our retail network.

Zoltán Áldott, President of the Management Board of INA

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2,664 Group EBITDA (HRK million)

hydrocarbon reserves

213MMboe

Production 2015 40.9

mboe/d

Service stations 2015

438

11,256 employees

170,000Petrol stations'daily users

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MOL49.08%

Institutional and private investors6.08%

Republic of Croatia44.84%

OWNERSHIP STRUCTURE

INA’s share capital is divided into 10,000,000 ordinary shares.Public trading of INA’s shares was launched on 1 December 2006.

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INA Group’s CCS EBITDA, excl. special items, amounted toHRK 3,669 million, 9% higherthan the previous year

3,669mil HRK

Net profit, excl. special items, amounted to HRK 58 million

58mil HRK

Refinery production increased by 13% and refined product salesby 10%

13%4

Refined product sales by increased 10%

10%

CAPEX amounted to HRK 1,650 million, out of which 84% invested in Croatia (capital invest-ments in Croatia amounted to HRK 1387 million and capital investments abroad HRK 263 million).

1,650 mil HRK

Net debt remained stable at HRK 3,032 million and gearing amounted to 22.3%.

22.3%

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CORE BUSINESSES

EXPLORATION AND PRODUCTION OF OIL AND GAS 2015

Exploration and Production Business Division is engaged in exploration, development and production of oil and natural gas in Croatia and abroad.Today, intense E&P activities are being carried out on-shore and off-shoreCroatia. Abroad, INA is currently present in Egypt and Angola.

• +6% TOTAL hydrocarbon production increase

• +20 % DOMESTIC crude production increase

• +3% international hydrocarbon production increase

• 3 exploration wells drilled

• 90 onshore wells optimized

• 3 development wells drilled

• 10 wells drilled in Egypt

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REFINING AND MARKETING

Refining and Marketing Business Division manages two crude oil refineries, lubricants production, a commercial wholesale network, and a logistics network for storing and distributing crude oil derivatives to the market. INA is producing high quality EURO V motor fuels, which meet the highest European quality standards.

• Strong focus on zero accident operation resulted in safe and secure operations. • Market share on the domestic market remained stable with increased sales on export markets.• Gasoline production in the refineries maximised to benefit from favourable gasoline crack spread.• Trading activities enabled a fast reaction to market conditions with increased flexibility in production.• Proven management tactics of adjusting production assets to reflect market realities continued with on-demand and block operation in the refineries and further crude oil basket diversification.

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RETAIL

Retail Business Division operates a regional network of 438 petrol stations in Croatia and neighbouring countries. INA has a leading position in Croatia and its petrol stations are recognizable points of purchase. In addition to motor fuels offer, INA’s petrol stations are offering wide range of consumer goods and variety of additional service tailored to fit customers’ demands and needs.

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• Entrepreneurial operational model implemented on 60 petrol stations

• New operating model introduced - INA Maloprodajni servisi founded

• Focus on non-fuel offer

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Corporate SocialResponsibility

Aware of its responsibility towards the local communities in which it operates and society as a whole, INA is committed to open and constructive partnership with all the various stakeholders affected by the company’s operations. In doing so, INA continuously seeks ways to further enhance its role of a desirable and reliable partner and to contribute to improving the quality of life in local communities by supporting numerous projects and development policies through donations and sponsorships and by investing volunteers work of for the public good.

Project was launched in 2015 with the aim of granting the use of selected locations owned by INA to the associations and individuals whose work would continue to contribute to the quality of life of the local community.

INA launched Green Belt project in 2014 with the aim of engaging the civil society organizations and public educational institutions in developing ideas and projects for the preservation of the environment and nature. In the 2015 tender, INA received 136 applications of which 15 were selected to be funded.

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INA VOLUNTEER CLUB737 members - 41% increased membership compared to 2014

4,368 volunteer hours in 36 actions

For the second time INA volunteer club received “Recognition for Contribution of Business Sector to the Development of Volunteering”

Grand Prix Award (HUOJ) Employer Partner AwardRecognition for contribution

of business sector to the development of volunteering

Golden Index Mamforce Standard Certificate Green Frog Award

AWARDS AND RECOGNITIONS

INA-Industrija nafte, d.d.Avenija Većeslava Holjevca 10

p.p. 55510 002 Zagreb

CROATIATel: +385(1) 6450 000

E-mail: ina-besplatni.telefon@ina.hr TOLL FREE PHONE NUMBER: 0800 1112