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15.11.2018.

Atlantic Grupa

Today

Atlantic Grupa is one of the

leading food companies in

the SEE region with the

renowned regional brands

that are, alongside the

product range of external

partners, supported by own

distribution system in the

region

2

17— production facilities

in 5 countries18— distribution

centres 5300— employees on

12 markets40— product presence

on over 40 markets

▪ Leading distributor of

multinational brands

▪ Founded in 1991

▪ FY17 sales: EUR 708m

▪ FY17 EBITDA*: EUR 69m

▪ MCap (13.11.2018) : EUR 492m

*Normalised 3

Management Board Ownership structure

Emil Tedeschi

Founder & President of the Management Board

Zoran StankovićVice President Finance

Neven VrankovićVice President Corporate Affairs

ATLANTIC GRUPA AS THE BEST MANAGED COMPANY IN 2015

1st in CROATIA

2nd in the CEE region

1st in the FOOD & BEVERAGE sector in the CEE

4

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

186223

267293 302

602630

657 674 682721

681708

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 2014 2015 2016 2017

Sales in EURm

2005-2017

❖2010: Acquisition of DROGA KOLINSKA

❖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

National company Regional company

GROWTH BASED ON INNOVATIONS AND M&AEuropean company

CEDEVITA

MULTIPOWER

DROGA KOLINSKA

2010*: Pro-forma consolidated with Droga Kolinska5

6

HISTORICAL DEVELOPMENTS OF KEY INDICATORS

4,7 4,8

4,2

3,53,2

3,03,2

2,3

0,0

1,0

2,0

3,0

4,0

5,0

6,0

Pro forma

cons 2010

2011 2012 2013 2014 2015 2016 2017

Net debt/EBITDA

11,3%

4,7%

7,6%

12,7% 12,4%13,1%

8,2%

12,9%

11,8%

9,4%10,4%

11,7%12,7% 12,5%

9,8%

10,9%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

Pro forma

cons 2010

2011 2012 2013 2014 2015 2016 2017

ROaE, ROCE

ROaE ROCE

11,7% 10,9% 11,3% 11,7% 11,7%

10,5%9,3% 9,7%

6,1%

7,4%8,1% 8,4% 8,6%

7,5%

6,0% 6,4%

2,8%

1,5%2,3%

3,9% 4,2% 4,5%

3,2%5,2%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

Pro forma

cons 2010

2011 2012 2013 2014 2015 2016 2017

Margin overview

EBITDA margin (normalised) EBIT margin (normalised)

Net profit margin (normalised)Normalised: excluding one off items.

602

630

657

674682

721

681

708

540

560

580

600

620

640

660

680

700

720

740

Pro forma

cons 2010

2011 2012 2013 2014 2015 2016 2017

Sales, EUR millions

❖ Stable shareholder structure

❖ Free float of 44.0%

Valuation30 September

201831 December 2017 31 December 2016

Last price in reporting period 975.0 862.0 882.0

Market capitalization* (in HRK millions) 3,250.9 2,874.2 2,940.9

Average daily turnover (in HRK

thousands)491.9 356.2 717.9

EV (in HRK millions) 4,267.4 4,063.2 4,446.1

EV/EBITDA 6.4 7.9 9.4

EV/EBIT 8.6 11.9 14.4

EV/Sales 0.8 0.8 0.9

EPS (in HRK) 107.2 63.2 48.8

P/E 9.1 13.6 18.1

*Closing price multiplied by the total number of shares

PERFORMANCE ON CROATIAN CAPITAL MARKET

25,3%

-2,3%

7,8%

-3,7%-7,6%

18,1%

-3,5% -7,0%

17,1%

-40%

0%

40%

9.10.2018 2017 2016

ATGR Crobex Crobex10

7

88

TOP-NOTCH BRAND PORTFOLIO

COMPANIES BEHIND TOP RANKED BRANDS IN ADRIA REGION:

SLO

CRO

SRB

B&H

MAC

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

ADRIA

REGION

Source: Valicon brand strength survey 2016

9

TOP-NOTCH BRAND PORTFOLIO

Source: Valicon brand strength survey 2016

Top 10 - Region

1Coca Cola

2Milka

3

4Vegeta

5

6

7Orbit

8

9Nivea

10Jana

Top 5 - Slovenia Top 5 - Croatia Top 5 - Serbia Top 5 - B&H Top 5 - Macedonia

Jana Plazma

Coca Cola Coca Cola Coca Cola Coca Cola Bitolski

Milka Coca Cola

Fructal Vegeta Moja kravica Colgate

Jamnica Milka Chipsy Stobi Flips

10

ATLANTIC GRUPA DISTRIBUTION

STRENGTH OF DISTRIBUTION

▪ The leading distributors of high-quality top FMCG brands

(both own and principal) in SEE

▪ Developed network with 18 distribution centers

▪ Direct access on over 60,000 sales points

▪ Over 1,000 delivery vehicles

▪ Developing distribution in Austria and Russia

11

12

Results in line with expectations coupled with strong profitability growth

Development of own brands and openings of new specialised stores

Limitations in cooperation with key customer

Atlantic Grupa and Belgian Aminolabs entered into a strategic partnership

New distribution contracts and the start of Argeta production in the United States of America

Reorganisation of Atlantic Grupa’s distribution activities

Significant decrease of indebtness and cash flow growth

Risk management and consolidation of IT solutions

KEY BUSINESS DEVELOPMENTS IN 2017

13

❖ Factories in Bleckede and Nova

Gradiška sold, as well as the

associated private label production

for third parties (revenues in 2017

in the amount of EUR 25.9 million)

❖ Transaction realised on 31st

October 2017

❖ Strategic brands will remain in

full ownership of Atlantic Grupa

Cash received and receivables from sale of subsidiaries

(in EUR million)

Cash 20.0

Receivables 7.9

Total sales consideration 27.9

Gain from sale of subsidiaries 8.6

AMINOLABS PARTNERSHIP

14

Settlement of Agrokor Grupa creditors voted in favour

New distribution contracts (Mars and Red Bull)

SPA for Neva signed

Private label business impact

KEY BUSINESS DEVELOPMENTS IN 2018

2017A/2017E: 100.1

2017A/2016A: 103.9

2017A/2017E: 99.5

2017A/2016A: 109.1

2017A/2017E: 99.0

2017A/2016A: 111.0

15Normalised data.

Expectations changed in December of 2017

RESULTS IN LINE WITH EXPECTATIONS

0

200

400

600

800

Sales

708 707 681

2017A

2017E

2016A

0

EBITDA EBIT

69

46

69

46

63

41

2017A

2017E

2016A

All data in EUR millions.

❖ SBU Coffee: records a considerable increase in sales, due to good sales

results in all the key markets and all key categories coupled with high

value market share

❖ SBU Snacks: great sales results in the markets of Serbia, Bosnia and

Herzegovina and Montenegro, and a double-digit growth in the market of

Croatia.

❖ SBU Beverages: a significant increase in sales in almost all categories,

due to excellent sales results in Croatia, Slovenia, Russia and Bosnia and

Herzegovina.

❖ SBU Pharma and Personal Care: an excellent increase in sales primarily

due to the increase in sales of the pharmacy chain Farmacia and the

increase in sales of Multivita (Vitamin C in Russia), Neva i Dietpharm

products.

❖ SBU Savoury Spreads: a significant sales growth due to double-digit

revenue growth in the majority of markets.

❖ SBU Sports and Functional Food: an observable decrease in sales as a

consequence of the portfolio restructuring.

❖ Strategic Distribution Regions and Distribution units: excellent sales

results of own brands and pricipal brands, coupled with record-high sales

in Croatia, Slovenia and Macedonia.

❖ SDR Zone West: a decrease in sales mainly in the German market in the

SBU Sports and Functional Food.

Comparative period has been adjusted to reflect current period reporting.* Other segments include SDR HoReCa, SDU CIS&Baltic, BU Baby Food, BU Gourmet, 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, SDRs and DUs through which the products were distributed.

(EUR million) FY 2017 FY 2016FY 2017/

FY 2016

SBU Coffee146.5 142.0 3.2%

SBU (Sweet and Salted) Snacks90.5 86.8 4.2%

SBU Beverages90.3 84.1 7.3%

SBU Pharma and Personal Care77.8 72.7 7.0%

SBU Savoury Spreads77.5 72.4 7.0%

SBU Sports and Functional Food51.3 59.9 (14.4%)

*From which private label production 25.9 23.6 9.7%

SDU Serbia151.3 146.8 3.0%

SDU Croatia138.1 129.2 6.9%

DU Slovenia102.4 100.6 1.8%

SDR Zone West55.9 67.1 (16.6%)

Other segments*115.0 101.7 13.1%

Reconciliation**(388.9) (382.5) 1.7%

Sales707.6 680.8 3.9%

16

SALES BY SBU&SDU IN 2017

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

17

2017 2016

30%

23%17%

8%

7%

9%4%

2% Croatia 29.8%

Serbia 23.1%

Slovenia 16.7%

Bosnia and Herzegovina 7.8%

Other regional markets* 6.5%

Key European markets** 9.5%

Russia and CIS 4.3%

Other markets 2.3%

29%

23%17%

8%

7%

10%

3%

3% Croatia 28.8%

Serbia 23.2%

Slovenia 16.8%

Bosnia and Herzegovina 7.8%

Other regional markets* 6.7%

Key European markets** 10.1%

Russia and CIS 3.6%

Other markets 3.0%

21%

21%

13%

13%

11%

10%

3%

4% 3% 1%

Principal brands 21.6%

Coffee 20.7%

Beverages 12.8%

Sweet and salted snacks 12.8%

Savoury spreads 11.0%

Pharma & Personal care 10.6%

Sports and Functional Food - own brands 3.6%

Sports and Function Food - private label production 3.5%

Baby food 2.7%

Gourmet 0.7%

21%

21%

13%

12%

11%

10%

5%

4% 2%

1%

Principal brands 21.4%

Coffee 20.8%

Sweet and salted snacks 12.8%

Beverages 12.4%

Savoury spreads 10.6%

Pharma & Personal care 10.3%

Sports and Functional Food - own brands 5.3%

Sports and Function Food - private label production 3.5%

Baby food 2.3%

Gourmet 0.6%

SALES BY MARKETS AND SEGMENTS

• SBU Coffee: despite the increase in sales, thedecrease in profitability is a result of higher costs of rawcoffee, largely compensated by increasing retail prices.

• SBU Snacks: the increase in profitability is aconsequence of the increase in sales revenue coupledwith a good control of costs.

• SBU Beverages: the decrease in profitability primarilyarises from the absence of one-off items (return ofexpenses for the water concession in Slovenia in2016).

• SBU Pharma and Personal Care: the increase inprofitability is a result of the sales revenue growth,coupled with a good control of costs.

• SBU Savoury Spreads: a profitability growth wasrecorded following a significant revenue growth andlower marketing expenses, coupled with a strict controlof other operating expenses.

• SBU Sports and Functional Food: loss reduction as aresult of restructuring and a more favourable relativegross margin.

(EUR million) FY 2017 FY 2016FY 2017/

FY 2016

SBU Coffee 27.9 30.4 (8.1%)

SBU (Sweet and Salted) Snacks 16.1 15.5 3.9%

SBU Beverages 21.1 21.6 (2.4%)

SBU Pharma and Personal Care 7.4 6.3 16.7%

SBU Savoury Spreads 17.2 15.9 8.1%

SBU Sports and Functional Food (1.0) (2.7) 63.4%

SDU Serbia 3.7 2.7 39.5%

SDU Croatia 3.4 1.7 99.4%

DU Slovenia 6.1 5.8 6.1%

SDR Zone West (5.4) (6.9) 21.6%

Other segments* (18.9) (27.0) 29.9%

Group EBITDA 77.6 63.2 22.7%

18

• SDU Serbia: profitability growth as a consequence of sales growth, more favourable mix of customers and products (which led to a more favourable gross margin) and a favourable effect of the Serbian dinar exchange rate.

• SDU Croatia: profitability growth in line with volume and value growth in sales and a more favourable mix of customers, with optimum cost management.

• DU Slovenia: profitability growth as a result of an increase in sales and a better customer mix.

• SDR Zone West: despite the decrease in sales, primarily caused by the decrease in revenue in the Sports and Functional Food segment, the improved profitability is a result of lower costs of services, staff costs, marketing expenses and lower impairment of receivables and inventories.

• Lower cost of Other segments as a result of one off gain realised by sale of two factories from the sport and function food segment, as well as private label production of that segment.

* Other segments include SDR HoReCa, SDU CIS, BU Baby food, BU Gourmet, 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. Comparative period has been adjusted to reflect current period reporting.

OPERATING RESULTS OF SBU&SDU IN 2017

❖ Focus on further deleveraging (net debt decrease of EUR 42.3 million in 2017).

❖ Net debt vs normalised EBITDA ratio fell from 3.17 to 2.29 at the end of 2017, and to 2.15 at the end of H1 2018.

❖ Interest coverage ratio increased.

❖ The cash flow from operating activities amounted to EUR 46.4 million in 2017.

(in EUR millions) 30.6.2018. 2017 2016

Net debt 136.1 157.4 200.3

Total assets 696.6 680.8 719.4

Total Equity 333.8 298.8 268.9

Current ratio 1.5 1.5 1.4

Gearing ratio 29.0% 34.5% 42.7%

Net debt/Normalised EBITDA 1.74 2.29 3.17

9M 2018 2017 2016

Interest coverage ratio 13.5 8.6 6.1

Capital expenditure 9.7 11.6 18.7

Cash flow from operating

activities48.0 34.9 38.9

19

44%

18%

11%

4%

17%

6%

Capital and reserves 43.9%

Long term borrowings 18.2%

Short term borrowings 10.7%

Bond 3.9%

Trade and other payables 17.6%

Other liabilities 5.7%

FINANCIAL INDICATORS

20

GUIDANCE TRACK RECORD

❖ Atlantic Grupa listed on the Zagreb Stock

Exchange on November 19th 2007

❖Since 2008 Atlantic Grupa publishes guidance

for the following financial year and delivers it

0

1.000

2.000

3.000

4.000

5.000

6.000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Sales (HRKm)

93% 99%103%

99%98% 98%

102%

102%

100% 100%

0

100

200

300

400

500

600

700

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

EBITDA (HRKm)

100%101%98%

102%101%

96%

100%98%

100%99%

0

150

300

450

600

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

EBIT (HRKm)

104% 95%99%

104%101%

96%

100%

97% 99%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%

❖ Focus on (i) further strengthening the position of well-known regional brands, (ii) development of

distribution operations by strengthening of the existing and acquisition of new principals, (iii) increasing of

the regional HoReCa portfolio, and (iv) continued internationalisation of operations.

❖ Continuation of listing and positioning of own brands into retail channel in Germany in cooperation with

distribution partners with the aim to increase the efficiency of overall operations in this market.

❖ The management of Atlantic Grupa in 2018 expects lower average prices of raw coffee in the global

commodity markets and an favourable effect of the EURUSD exchange rate, which will have a positive

influence on the profitability of the Strategic business unit Coffee, as well as Atlantic Grupa in whole.

• If the effect of revenue realised on the basis of service production (private label) in the sports and functional food segment that in 2017 amounted to approximately EUR 26 million is excluded, the expected revenue growth in 2018 compared to 2017 will be 5.1%. If we exclude operating profit realised on the basis of this service production, the increase in EBITDA will be 9.6% while the increase in EBIT will be 13.3%.

• In 2018, we expect capital expenditure in the amount of around EUR 21 million.

• The expected effective tax rate in 2018 should be at the level of the previous year.

Strategic

management

guidance

(in EUR millions) 2018 Guidance 2017 2018/2017

Sales 707 700 1.0%

EBITDA 73 69 6.3%

EBIT 50 46 9.8%

Interest expense 6 8 (23.1%)

21

STRATEGIC GUIDANCE FOR 2018

22

BUSINESS UNITS

23

SBU COFFEE 20.7 % — share in sales

EUR 147m— sales in 2017

24

SBU SNACKS 12.8 % — share in sales

EUR 91m— sales in 2017

25

SBU BEVERAGES 12.8 % — share in sales

EUR 91m — sales in 2017

26

SBU SAVOURY SPREADS 11.0 % — share in sales

EUR 78m— sales in 2017

27

SBU PHARMA AND PERSONAL CARE10.6 % — share in sales

EUR 78m— sales in 2017

28

SBU SPORTS AND FUNCTION FOOD7.2 %

— share in sales

EUR 52m— sales in 2017

29

2.7 % — share in sales

EUR 19m— sales in 2017

BU BABY FOOD

30

BU GOURMET 0.7 % — share in sales

EUR 5m— sales in 2017

Atlantic Grupa d.d.

Miramarska 23

10000 Zagreb, HR

T +385 1 2413 900

http://www.atlantic.hr/en/

31