1

Financial results for H1 2014ZagrebJuly, 2014

22Regional Energy Overview_v7.pptx

Total net profit of INA GroupHRK millions

2

Net profit growth of 76%

Total EBIT of INA GroupHRK millions

H1 2013 H1 2014

349

534

H1 2013 H1 2014

211

372

Key takeawaysSignificant improvement in profitability despite a difficult market and adverse regulatory changesDecreasing realized hydrocarbon prices and moderately declining total hydrocarbon production Depressed refining environment, lower average crack spread by 22% - continuous losses due to

structural weakness despite strong market share, efficiency improvement, yield improvementConsiderable increase in investments (+33%)Financial position improved as gearing level decreased to 24.3% from 25.8% in H1 2013 Operating cash flow remains strong on the level of HRK 1,184 millionIncreasing crude oil production from existing assets by 3% - contribution of 4P projectContinuation of filling station modernization program – 190 modern stations altogether to date

+53%+76%

33Regional Energy Overview_v7.pptx

H1 2013 H1 2014

364487

117

15819

20

Upstream Downstream Other

500

665

3

Investments growth by 33%InvestmentsHRK millions

+33% CAPEX increased by 33% compared to the same period 2013

Majority invested in Croatia, mainly in Upstream segment

Upstream Offshore development drilling campaign

on Ika field EOR program Extensive workover on domestic onshore

fields Downstream

Regular Sisak refinery turnaround Focus on modernization and capital

reconstruction of petrol stations including new autogas filling sites

44

Further improvement of financial position

2010 2011 2012 2013 H1 2014

9,9389,115

6,664

4,761 4,269

INA Group net indebtedness decreased by 18% compared to the same period last year

Gearing ratio reduced further to 24.3% following the trend in the last three years

Operating cash flow provides a solid base for current investment growth and selected future value-creating investments

Net indebtedness(HRK mln)

Gearing ratio(%)

4

2010 2011 2012 2013 H1 2014

43.72

38.82

30.83

27.0024.30

55Regional Energy Overview_v7.pptx

5

Significantly improved operational and safety performance

2011 2012 2013

LTIF= Lost time injury frequency

2.6

2.1

1.6

WHOLESALE MARKET SHARE

CROATIA

REFINERY OWN CONSUMPTION

AND LOSS %14.9%

13.1%

11.7%

NUMBER OF MODERNIZED

FILLING STATIONS (CUMULATIVE

PRODUCTION DECLINE OF DOMESTIC OILFIELDS%

3%

2%

6%

NUMBER OF EPLORATION

WELLS DRILLED IN CROATIA

66%67%

73%

63

130

160

7

1

2

66

INA’s motor fuel market share in Croatia

INA’s market performance: increased market share despite market shrinkage and fierce competition

INA’s motor fuel market share in Bosnia

INA’s motor fuel market share in Slovenia

2007 2008 2009 2010 2011 2012 201330%35%40%45%50%55%60%65%70%

2007 2008 2009 2010 2011 2012 201360%62%64%66%68%70%72%74%76%78%80%

Croatia: - Steep Increase from 64% (2011) to 73% (2013) despite market shrinkage and fierce competitionBosnia & Herzegovina: - Continuous increase from 37% to 48% over the last 4 yearsSlovenia: - From practically zero to more than 10% in a year, made available by sizeable refinery investments improving product quality

2007 2008 2009 2010 2011 2012 20130%

2%

4%

6%

8%

10%

12%

Start of full wholesale supply of

Tifon

Completion of large-scale refinery

modernizetion investments, improving

product quality

77Regional Energy Overview_v7.pptx7

Agressive investments growth

Investments in 2012 and 2013HRK millions

2012 2013

1,166

1,655

120

358

Domestic International

1,286

2,013+57%

55% of EBITDA reinvested, more than 80% was invested in Croatia with Upstream being the main driver.

HRK 12.6 bn CAPEX in 2009-2014 H1, HRK 10 bn of which in Croatia, of which HRK 2.5 bn on refinery modernization

2,012 2,013

746

1,396

457

545

83

72

Upstream Downstream Other

2,013

1,286

+87%

+19%

Investments 2009-2014 H1HRK millions

7,936 2,475

1,469 691

Exploration & ProductionRefinery modernizationR&M otherRetail

HRK 12.6 bn

Disclaimer

▪ This presentation and the associated slides and discussion contain forward-looking statements. These statements are naturally subject to uncertainty and changes in circumstances. Those forward-looking statements may include, but are not limited to, those regarding capital employed, capital expenditure, cash flows, costs, savings, debt, demand, depreciation, disposals, dividends, earnings, efficiency, gearing, growth, improvements, investments, margins, performance, prices, production, productivity, profits, reserves, returns, sales, share buy backs, special and exceptional items, strategy, synergies, tax rates, trends, value, volumes, and the effects of INA merger and acquisition activities. These forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from those expressed or implied by these forward-looking statements. These risks, uncertainties and other factors include, but are not limited to developments in government regulations, foreign exchange rates, crude oil and gas prices, crack spreads, political stability, economic growth and the completion of ongoing transactions. Many of these factors are beyond the Company's ability to control or predict. Given these and other uncertainties, you are cautioned not to place undue reliance on any of the forward-looking statements contained herein or otherwise. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements (which speak only as of the date hereof) to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as maybe required under applicable securities laws.

▪ Statements and data contained in this presentation and the associated slides and discussions, which relate to the performance of INA in this and future years, represent plans, targets or projections.

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