FIMA Daily Insight

IN FOCUS - STOCK EXCHANGE December 16, 2010

ZSE STOCK MARKET European shares are in slight minus while markets in U.S. opened higher as winvestors are encouraged by reports on economy as Labor Department stated CROBEX Last 2.038,6 that first time claims for unemployment benefits dropped for third time in four % daily -1,46% weeks while U.S. Government reported increase in imports showing increase in spending of Americans. % YTD 1,72% Domestic capital market suffered from profit taking with CROBEX declining 1,5% CROBEX10 last 1107,8 to 2.038,61pts while CROBEX10 dropped 1,8% to 1.107,75pts. Regular stock % daily -1,78% turnover amounted to HRK 177,2 million. % YTD 5,05% Trading with oil and gas company INA (INARA CZ) is still the main topic on ZSE. Stock Turnover (HRK m) 177,19 Today’s turnover with Ina’s share amounted to HRK 139,9 million. Company announced signing of gas supply contract with Italian company ENI. Ina stated it Total MCAP (HRK bn) managed to arranged better terms with regard to quantity flexibility and price of

Source: www.zse.hr gas, as well as, possibility to use 2 distribution routes, through Slovenia and through Croatian and Hungarian connector. TDR, tobacco producer owned by Adris (ADRSPA, ADRSRA CZ), announced CROBEX MOVERS satisfaction with 2010 results. Although the company couldn’t state financials, their CEO stated that despite difficult environment marked with increased tax pressure, market liberalization and legal changes, the company managed to -8,0% -6,0% -4,0% -2,0% 0,0% 2,0% 4,0% reach satisfactory results. The company continues to be main regional tobacco

KNZM-R-A products producer holding steady market shares while in Bosnia and Herzegovina -R-A TDR’s market share increased 9% to 38%. Company expects their investment ISTT-R-A into factory in Iran to be completed by the end of the next year. Preferred Adris PTKM-R-A share (ADRSPA CZ) declined 0,2% while ordinary share (ADRSRA CZ) remained KORF-R-A flat, shares collected HRK 4,1m and HRK 4m in turnover, respectively. -R-A INA-R-A Construction sector, which was main beneficiary of recent rally fueled by fresh THNK-R-A ADRS-P-A liquidity expectation due to Mol’s offer for Ina, suffered the most from today’s KRAS-R-A profit taking with construction consultancy IGH (IGHRA CZ) dropping 6%, power ATGR-R-A trunk producer and heavy constructor (DLKVRA CZ) plunged 4,3%, ERNT-R-A building constructor (THNKRA CZ) by 3,9% while construction CKML-R-A engineering company Ingra (INGRRA CZ) ended at HRK 16,72, 1,4% down. INGR-R-A LKPC-R-A JNAF-R-A ULPL-R-A ZABA-R-A HT-R-A KOEI-R-A ATPL-R-A JDPL-R-A DLKV-R-A PODR-R-A IGH-R-A * data is calculated using last traded price Source: www.zse.hr

CROBEX 3 MONTH MOVEMENT

2.300 70

2.200 60 2.100 50

2.000 40

p t s Daily news headlines (more available on www.fima-securities.com): 1.900 30

1.800 20 HRKMillions Bank of America appeals $595 million Lehman ruling 1.700 10

1.600 0 EU leaders meet amid euro jitters Turnover CROBEX CFTC limits commodity traders, eases some rules

Source: www.zse.hr Beijing Turbine: China’s Push Into Wind Worries U.S. Industry Wage Growth Slows in Western Nations For more information please contact us via mail [email protected] or on tel. +385 42 66 09 60 1

FIMA Daily Insight

IN FOCUS - ZAGREB STOCK EXCHANGE

Koncar Group: HRK 188.9m in pre-tax profit in 2010 LIQUIDITY TOP 5 INA-R-A 139.912.370 HRK According to projected results for this year, Koncar Group’s consolidated pre-tax HT-R-A 10.489.499 HRK profit would be HRK 188.9m, while profit after taxing is estimated at HRK ADRS-P-A 4.138.129 HRK ADRS-R-A 4.036.480 HRK 168.4m, company’s Supervisory Board announced. Total revenues are projected CKML-R-A 2.988.000 HRK at HRK 2.7bn, which is in line with this year’s plan and slightly less than in 2009.

Source: www.zse.hr Total sales of products and services are estimated at HRK 2.4bn, which is 9 MARKET SENTIMENT percent less than in 2009 and 4 percent below the plan. Export is projected at No. of traded stocks 72 HRK 1.3bn, 5 percent more than last year. (Source: www.limun.hr original text Increase 19 was published on www.banka.hr) Decrease 49 w/o change 4 Pension funds: Buying Ina shares is in best interest of our clients

Source: www.zse.hr MACROECONOMIC PARAMETERS Reacting to media articles about their sudden interest in Ina share, the Real GDP (Q2 2010)* 0,2% association of companies managing pension funds and pension insurance Real GDP (2009)* -5,8% companies issued a press release explaining their motives. For the purpose of CPI (September 10)** 1,4% informing the public, and pension fund clients in particular, the Association Unemployment (October 10) 17,8% especially emphasizes that pension funds have been performing their activities at FX RATE HRK per EUR 7,21 the stock exchange in relation to Ina share only based on their own estimations, FX RATE HRK per USD 5,82 guided by interests of their clients, because they see Ina share as a good Source: www.dzs.hr, www.hnb.hr investment opportunity. (Source: www.limun.hr original text was published on * % change, yoy www.banka.hr) ** % change, yoy, end of period

Croatia's Sees 2010 Group Profit at $9.3 Mln, Eyes LT CREDIT RATING 1.0 Mln Tonnage Mark FitchRatings: BBB- Standard&Poor's: BBB Croatian blue-chip shipping company Atlantska Plovidba [ZSE:ATPL-R-A] expects Moody's: Baa3 to turn to a group profit of $9.3 million (7.2 million euro) in 2010, local media Source: www.hnb.hr reported. It was not immediately clear if the figure referred to gross or net earnings. (Source: www.limun.hr original text was published on MIDPOINT EXCHANGE RATES OF THE CNB www.seenews.com)

9,0 Croatia's INA Unit Signs Gas Supply Deal with Italy's Eni

8,0 Croatian integrated oil and gas company INA-Industrija Nafte [ZSE:INA-R-A] 7,0 said on Thursday its Prirodni Plin unit signed a three-year contract for natural gas 6,0 supplies with Italy's Eni. After a competitive and transparent bid for gas supply, 5,0 the goal of which was to select a highly reliable supplier under most favourable 4,0 conditions that include the best possible price and flexible terms, the best offer 3,0 was chosen, INA-Industrija Nafte (INA) said in a statement posted on the website of the Zagreb bourse. (Source: www.limun.hr original text was published

HRK/EUR HRK/USD on www.seenews.com) Source: www.hnb.hr

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FIMA Daily Insight

IN FOCUS - ZAGREB STOCK EXCHANGE

CROATIAN EQUITIES (FUNDAMENTAL MULTIPLES)

Average Mk cap (HRK price (HRK) m) P/E P/S P/Bv EV/EBITDA EV/EBIT EV/S Yd 09 10e 09 10e 09 10e 09 10e 09 10e 09 10e 09 10e Industry (preferred)* 269,9 4.908,3 9,8 8,2 1,7 1,6 0,8 0,7 4,2 3,5 6,1 4,7 1,1 1,0 2,6% 2,6% Belišće 494,2 575,4 208,2 0,6 1,0 20,0 12.167,4 1,5 0,0% 1.327,4 1.767,6 14,1 1,2 1,5 9,5 18,9 0,9 9,0% INA 2.830,0 28.300,0 - 1,2 2,4 23,9 2.022,7 1,5 0,0% Konĉar DiST 1.000,0 253,9 7,7 0,4 1,8 4,7 7,1 0,4 10,3% Konĉar Elektroindustrija 516,3 1.328,0 11,8 0,5 0,9 12,0 38,2 0,5 0,0% 163,5 546,2 - 0,3 0,7 - - 0,4 0,0%

Food Ĉakoveĉki mlinovi 3.600,0 378,0 16,0 0,6 1,0 6,9 12,8 0,5 3,3% Kraš 427,9 587,7 15,5 0,6 0,9 7,3 13,4 0,8 4,7% Ledo 5.482,8 1.207,1 11,9 1,1 1,8 13,5 18,2 1,8 0,0% 296,9 1.609,1 - 0,4 1,0 1.349,0 - 0,8 0,0% Viro 339,6 470,9 134,5 0,9 1,9 11,6 18,2 1,6 0,0%

Telecom HT-Hrvatske Telekomunikacije 278,4 22.801,0 11,3 12,3 2,6 2,7 1,9 2,1 5,0 5,2 8,1 8,2 2,1 2,2 12,2% 9,0%

Construction Dalekovod 256,5 588,2 6,6 7,0 0,2 0,2 0,9 0,8 5,0 5,3 6,6 7,1 0,5 0,5 0,0% 0,0% Hidroelektra Niskogradnja 155,7 97,1 17,9 0,1 0,5 2,9 5,3 0,1 0,0% Institut IGH 1.656,0 262,6 24,6 0,4 0,7 14,2 31,5 1,4 0,0% Ingra 16,5 124,0 - 0,2 0,3 23,0 26,7 1,8 0,0% Tehnika 1.153,8 218,6 18,3 0,2 0,7 31,5 - 0,5 0,0% 244,2 111,6 - 0,1 0,7 4,6 - 0,2 5,6%

Transportation Atlantska Plovidba 755,1 1.053,7 - 21,7 1,3 1,2 0,8 0,8 12,7 8,4 407,4 22,5 2,9 2,7 2,6% 2,6% Jadroplov 145,3 237,8 - 1,1 0,4 12.891,6 - 1,1 0,0% Jadranski naftovod 2.812,6 2.089,3 17,6 4,7 0,7 6,8 13,3 4,4 0,0% Luka Ploĉe 1.565,1 348,4 84,8 2,2 1,8 18,5 61,5 2,4 0,0% Luka 185,7 1.110,5 310,4 4,9 3,2 43,8 105,6 5,3 0,0% 575,4 333,7 6,4 1,4 0,6 8,9 22,6 4,7 6,9%

Retail/Wholesale 800,1 2.667,6 31,4 21,8 1,2 1,2 3,7 3,2 14,5 11,7 18,3 14,3 1,3 1,2 1,1% 1,2% Konzum 184,8 4.195,3 12,3 0,3 2,4 7,6 9,6 0,5 0,0% Magma 35,2 171,5 - 0,2 10,4 - - 0,8 0,0%

Tourism HUP - Zagreb 1.344,8 633,9 24,9 2,3 1,2 12,4 32,6 3,4 1,3% Istraturist Umag 288,9 1.350,6 35,9 3,6 1,8 15,1 28,4 4,9 0,0% Liburnia Riviera Hoteli 2.183,3 660,8 722,9 3,3 0,7 23,2 146,9 3,6 0,0% Maistra 57,6 630,6 - 1,3 0,7 18,9 - 3,2 0,0% Plava Laguna 1.527,5 923,6 18,6 1,9 0,7 5,4 15,1 1,9 4,9% Riviera Poreĉ 160,0 584,6 - 1,0 0,4 14,6 - 2,5 0,0%

“ - “ stands for negative value of multiple

* multiples for Adris Group calculated on diluted basis

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FIMA Daily Insight

IN FOCUS - ZAGREB STOCK EXCHANGE

CONTACTS FOR INSTITUTIONAL IN VESTORS:

KREŠIMIR ĈULO [email protected] +385 1 63 98 357

IRENA FIŠTREK [email protected] +385 42 660 964

GORDAN TOMLJENOVIĆ [email protected] +385 1 63 98 352

TRADING DEPARTMENT: [email protected] Phone : +385 42 66 09 60

RESEARCH DEPARTMENT:

ŢELJKO BUNJEVAC [email protected] +385 1 63 98 356

NEVEN ŠALAMON [email protected] +385 42 66 09 62

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FIMA Daily Insight

IN FOCUS - ZAGREB STOCK EXCHANGE

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FIMA Daily Insight is a daily publication of FIMA Securities Ltd. which comments for the needs of its users dynamics of trading financial instruments on capital markets in the Republic of Croatia, transfers and publishes parts or entire selected news from various publicly available sources and media of interest for the investor community, and offers overview of the selected parameters of financial instruments trading on Zagreb Stock Exchange, as also selected basic macroeconomic indicators. The content uses publicly available records published by the selected relevant sources and public information services (Zagreb Stock Exchange, Bloomberg, Reuters, publicly available financial reports of the Issuer, publicly available opinions of representatives of the Issuers etc.). Although we believe that the stated information and other records are reliable, we do not guarantee for their accuracy, completeness or timeliness.

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