ATLANTIC GRUPA

Company of Added Value

Maja Barać Adrinek, Head of Investor Relations and Business Development

East Capital Summit, Belgrade 04 June 2014

CONTENT

BUSINESS OVERVIEW

FINANCIAL OVERVIEW

STRATEGIC GUIDANCE

2

ATLANTIC GRUPA TODAY

Business card

Among the leading food and beverage companies in the SEE

region

Making business

Companies in 11 countries and products in over 40 markets

Key markets: SEE, Western Europe, Russia

17 production facilities

Foundation

1991

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.

3

FY13 sales

EUR 674 millions

FY13 EBITDA

EUR 79 millions

No of employees

4,228

Listed on the Zagreb Stock Exchange

Since 2007

4

DEVELOPMENT CYCLE: EXTENSIVE M&A TRACK RECORD

2005-2013

2010: Acquisition of DROGA

KOLINSKA

Several small-size acquisitions

2007: IPO

2005: Acquisition of MULTIPOWER

2000-2004

Regional expansion

2001: Acquisition of CEDEVITA

1990’s

Distribution centres across Croatia

Various distribution cooperations

DIS

TR

IBU

TIO

N

DIS

TR

IBU

TIO

N &

PR

OD

UC

TIO

N

VE

RT

ICA

L

INT

EG

RA

TIO

N

European company

National company Regional company

2010*: Pro-forma consolidated with Droga Kolinska.

1 6 12 17 27 33 36 42 61 81 90 102145

186223

267293 302

602630

657 674

0

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 1993-2012:

+38.0%

PORTFOLIO OVERVIEW

5

Sa

vo

ury

Sp

rea

ds

Sp

ort

s a

nd

F

un

ctio

nal

Foo

d

Coff

ee

Sn

acks

Dis

trib

utio

n

Be

ve

rage

s

Pe

rson

al

Care

P

ha

rma

B

ab

y F

oo

d

ATLANTIC GRUPA’S BUSINESS MODEL TODAY

SBU

COFFEE

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*

6

*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

SALES AND PRODUCTION PROFILE

7

Sales profile in 2013; *Other regional markets: Macedonia, Montenegro, Kosovo; **Key European markets: Germany, UK, Italy, Switzerland, Austria, Sweden, Spain

Slovenia

Croatia

Bosnia and

Herzegovina Serbia

Macedonia + production facility

in Germany

Overview of production facilities

Croatia24.8%

Serbia24.1%

Slovenia13.6%

Bosnia and Herzegovina

7.2%

Other regional markets*

6.3%

Key European markets**

11.7%

Russia and CIS5.9%

Other markets6.4%

Sales by countries Principal brands15.0%

Sports and Functional

Food15.5%

Pharma & Personal

care 9.7%

Coffee21.5%

Sweet and salted snacks

12.2%

Savoury spreads

9.1%

Beverages 12.9%Baby food

4.2%

Sales by segments

Own brands72.5%

Principal brands15.0%

Private label6.4%

Farmacia6.1%

Sales by brands

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.

8

Zdenko

Adrović

Lada

Tedeschi

Fiorio

Siniša

Petrović

Željko

Perić

Franz

Josef

Flosbach

Aleksandar

Pekeč

Vedrana

Jelušić

Kašić

President

of the

Supervisory

Board

Vice President

of the

Supervisory

Board

Member

of the

Supervisory

Board

Member

of the

Supervisory

Board

Member

of the

Supervisory

Board

Member

of the

Supervisory

Board

Member

of the

Supervisory

Board

Management Ownership structure on 31/03/2014

Emil Tedeschi

50.2%

Pension funds18.2%

EBRD8.5%

DEG8.5%

Lada Tedeschi Fiorio5.8%

Management1.2%Others

7.6%

CONTENT

BUSINESS OVERVIEW

FINANCIAL OVERVIEW

STRATEGIC GUIDANCE

9

FINANCIAL OVERVIEW: 2010 – 2013

10

P&L figures normalized; *Gearing ratio calculated as Net debt/(Total equity+Net debt).

(EURm) FY10 FY10 pro-forma FY11 FY12 FY13CAGR FY10

pro-forma - FY13FY13/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 activities14 n/a 22 39 56

Balance sheet as of 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 of

merchandise sold”. This reclassification

decreases above presented sales by

HRK 44.9 million in 2013 and HRK 40.9

million in 2012.

GUIDANCE TRACK RECORD

11

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.

0

100

200

300

400

500

600

700

800

2008 2009 2010 2011 2012 2013

Sales (EURm)

93% 103% 99%

102%99% 98%

0

1.000

2.000

3.000

4.000

5.000

6.000

Sales EBITDA EBIT

4.930

559399

4.964

550385

Reported Guidance99%

102%104% 0

10

20

30

40

50

60

70

80

90

2008 2009 2010 2011 2012 2013

EBITDA (EURm)

100% 98% 101%

98%102%

101%

0

1.000

2.000

3.000

4.000

5.000

6.000

Sales EBITDA EBIT

4.930

559399

4.964

550385

Reported Guidance99%

102%104%

0

10

20

30

40

50

60

2008 2009 2010 2011 2012 2013

EBIT (EURm)

104%

101%104%

97%

95%99%

0

1.000

2.000

3.000

4.000

5.000

6.000

Sales EBITDA EBIT

4.930

559399

4.964

550385

Reported Guidance99%

102%104%

12

PERFORMANCE BY STRATEGIC BUSINESS AND STRATEGIC DISTRIBUTION UNITS IN 2013

* 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 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 HRK 44.9 million in 2013 and HRK 40.9 million in 2012.

EURm 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%

EURm 2013 2012 2013/2012

SBU Beverages 16 18 (10.8%)

SBU Coffee 32 21 52.3%

SBU (Sweet and Salted) Snacks 15 15 (3.0%)

SBU Savoury Spreads 16 16 0.4%

SBU Sports and Functional Food 3 2 57.5%

SBU Pharma and Personal Care 6 8 (16.3%)

SDU Croatia 2 2 20.8%

SDU Slovenia, Serbia, Macedonia 11 11 (2.3%)

Other segments* (23) (19) 22.3%

Group EBITDA 79 74 5.8%

13

FINANCIAL OVERVIEW IN Q1 2014

* 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 three month period ended 31 March 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.

EURm Q1 2014 Q1 2013*Q1 2014/

Q1 2013

SBU Beverages 17 17 1.8%

SBU Coffee 28 30 (5.8%)

SBU (Sweet and Salted) Snacks 18 19 (7.4%)

SBU Savoury Spreads 12 12 (4.3%)

SBU Sports and Functional Food 28 26 5.9%

SBU Pharma and Personal Care 16 15 7.1%

SDU Croatia 22 19 18.2%

SDU Serbia 31 33 (6.9%)

SDU International markets 9 10 (5.2%)

DU Slovenia 20 16 24.3%

Other segments** 24 24 (0.8%)

Reconciliation*** (75) (77) (3.0%)

Sales 150 144 4.1%

Key highlights (EURm) Q1 2014 Q1 2013Q1 2014/

Q1 2013

Revenues 151 146 3.7%

Sales 150 144 4.1%

EBITDA 16 15 6.9%

EBIT 11 10 13.4%

Net profit 4 4 6.6%

EBITDA margin 10.6% 10.4% +28 bp

EBIT margin 7.6% 7.0% +63 bp

Net profit margin 2.9% 2.8% +7 bp

14

PERFORMANCE ON CROATIAN CAPITAL MARKET

34%

7%

-38%

18%

48%

-47%

3% 0%

-18%

5%

16%

-67%

2%

-1%

-15%

10%

-80%

-40%

0%

40%

2013 2012 2011 2010 2009 2008

Performance on capital marketATGR-R-A

Crobex

Crobex10

0

50

100

150

0

1,000

2,000

3,000

4,000

5,000

6,000

EURPoints ATGR-R-A vs CROBEX

CROBEX

ATGR-R-A

27/05/2014 31/12/2013

Last price (in EUR) 111 96

Market capitalization* (EUR millions) 371 319

Valuation 2013 2012

Last price in reporting period 96 71

Market capitalization* (EUR millions) 319 238

Average daily turnover (EUR thousands) 32 27

EV (EUR millions) 601 558

EV/EBITDA** 7.6 7.5

EV/EBIT** 10.6 10.5

EV/sales** 0.9 0.8

EPS** (in EUR) 58 30

P/E** 1.6 2.3

The Atlantic Grupa’s share significantly outperformed the growth

of Crobex and Crobex10 and ended 2013 at EUR 96, which was

a 34.0% growth within a year.

With the average market capitalisation of EUR 290 millions,

Atlantic Grupa took the fifth place among the components of the

CROBEX10 stock index in 2013.

* Closing price multiplied by the total number of shares

** Normalized in 2012

CONTENT

BUSINESS OVERVIEW

FINANCIAL OVERVIEW

STRATEGIC GUIDANCE

15

16

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 HRK 240 million.

Capital expenditure at HRK 216 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.

EURm 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%)

ATLANTIC GRUPA

Company of Added Value

Maja Barać Adrinek, Head of Investor Relations and Business Development

East Capital Summit, Belgrade 04 June 2014