FIMA Daily Insight

IN FOCUS - STOCK EXCHANGE August 27, 2013 Mirroring performance of their European peers both domestic stock

ZSE STOCK MARKET indices declined; CROBEX by 0.47% to 1,839.16 pts and blue chip CROBEX Last 1.839,2 CROBEX10 by 0.66% to 1,032.70 pts. Regular turnover amounted to % daily -0,47 HRK 8 million. % YTD 5,68% CROBEX10 last 1.032,7 Integrated telecom operator HT (HTRA CZ) topped the liquidity board % daily -0,66 once again collecting HRK 1 million in turnover while its price declined % YTD 6,29% 0.3% to HRK 177.10. CROBEX plus 962,8 % daily -0,18 Heavy constructor (DLKVRA CZ) also came to focus % YTD -3,72% collecting HRK 0.7 million in turnover and increasing 16.3% to HRK Stock Turnov er (HRK m) 7,98 31.40. 's Constitutional Court on Tuesday unanimously ruled to

Source: w w w .zse.hr accept the appeal of the company Dalekovod against a decision of the -10,0% -5,0% 0,0% 5,0% 10,0% 15,0% 20,0% Zagreb Commercial Court to stay the pre-bankruptcy settlement DLKV-R-A ATPL-R-A proceedings in the company. ZABA-R-A

ADRS-P-A

DIOK-R-A Oil and gas INA (INARA CZ) followed with HRK 0.4 million in turnover

VDKT-R-A

TISK-R-A while its price decreased 1.2% to HRK 4,075.01. -R-A ATGR-R-A Coffees and snack producer Frank (FRNKRA CZ) followed with HRK 0.4 KOEI-R-A KORF-R-A million in turnover, while price advanced 11% to HRK 500.0. ERNT-R-A HT-R-A Members of the Supervisory Board of 's insurance company -R-A LKPC-R-A Triglav Osiguranje (ZVTG SV) have endorsed the intention of the VPIK-R-A KRAS-R-A company's Managing Board to bid for a majority stake in Croatia ADPL-R-A BLJE-R-A Osiguranje (CROSRA CZ), it was announced after a session of the LKRI-R-A

INA-R-A Supervisory Board. In order to buy a majority stake in Croatia PTKM-R-A Osiguranje, Triglav should set aside up to EUR 250 million. The Croatian INGR-R-A PODR-R-A government invited bids from all interested investors for the acquisition DDJH-R-A of a stake in Croatia Osiguranje in August 2013. * data is calculated using last traded price Source: www.zse.hr

CROBEX 3 MONTH MOVEMENT

2.100 80

2.000 70

60 1.900 50

1.800

pts 40

30 1.700 HRK Millions

20 1.600 10

1.500 0 Turnover CROBEX

source: www.zse.hr

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FM says Croatia should comply with EU rules LIQUIDITY TOP 5 HT-R-A 1.001.167 HRK Gradual introduction of rules which will be respected was one of reasons for DLKV-R-A 659.096 HRK Croatia's entry into the European Union, Croatian Foreign Affairs Minister INA-R-A 441.260 HRK Vesna Pusic said on Monday evening, adding that her country should first FRNK-R-A 416.000 HRK abide by the existing rules in the EU and then lobby for their possible INGR-R-A 365.641 HRK change. It is true that old European Union member-states were eligible to

Source: w w w .zse.hr some limits in implementation of the European Arrest Warrant (EAW), and

MARKET SENTIMENT that entrants after 2002 were not entitled to it, Pusic told the national No. of traded stocks 86 television (HTV) in an interview. Asked by the anchorman that the question Increase 40 might be raised about equality, the foreign minister explained that Croatia Decrease 43 had had to translate a much larger volume of acquis communautaire than w/o change 3 previous acceding countries as it was natural given that the EU had been

Source: w w w .zse.hr developing and the Union was different today than, for example, in the MACROECONOMIC PARAMETERS 1980s. "It is certainly one of reasons for Croatia's interest in becoming an GDP estimate (2013) 0,3% EU member that we start gradually transpose EU rules into the national Real GDP (Q2 2012)* -2,2% legislation and comply with them" Pusic said. We should not try to detect Real GDP (2011)* 0,0% unfriendliness or plot, she said in the context of interpretations of the CPI ( Q2 2012)** 3,4% European Justice Commissioner Viviane Reding's request for explanations Unemployment ( Q2 2012) 18,2% when Croatia intends to amend the current national legislation on the FX RATE HRK per EUR 7,55 judicial cooperation which is dubbed Lex Perkovic and which the national FX RATE HRK per USD 5,70 parliament adopted two day before Croatia's admission to the European

Source: w w w .dzs.hr, w w w .hnb.hr Union. The contentious legislation introduced time limits to the

* % change, y oy implementation of the EAW on crimes committed after August 2002.

** % change, y oy , end of period (Source: daily.tportal.hr)

Cons. court overturns Commercial court's decision to stay Dalekovod CROATIA LT CREDIT RATING case FitchRatings: BBB- Standard&Poor's: BB+ Last month, Zagreb Commercial Court Judge Mislav Kolakusic halted the Moody's: Baa3 pre-bankruptcy settlement proceedings in Dalekovod so that he could file a Source: w w w .hnb.hr motion with the Constitutional Court to assess if some provisions from the

law on financial operations and pre-bankruptcy settlement comply with the Constitution. This prompted Dalekovod to file the complaint with the 8,0 Constitutional Court against Kolakusic's ruling, saying it breached 7,0 fundamental constitutional rights such as the right to a fair trial, equality before the law, and free enterprise. The Constitutional court came to the 6,0 conclusion to quash the lower court's ruling after Constitutional Court judges 5,0 considered the case on Monday afternoon, according to unofficial sources from this Court. Its conclusion is likely to be posted on its web site soon. As 4,0 many as 1,600 workers are on Dalekovod's payroll. (Source: daily.tportal.hr) HRK-EUR HRK-USD Source: www.hnb.hr For more information please contact us via mail [email protected] or on tel. +385 42 66 09 60 2

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CROATIAN EQUITIES (FUNDAMENTAL MULTIPLES)

Average Mk cap Mk cap P/E P/S P/Bv EV/EBITDA EV/S Yd price (HRK m) (EUR m) (HRK) 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 Industry AD Plastik 124,1 521,0 69 8,1 9,3 0,7 0,7 0,7 0,7 7,1 9,1 1,0 1,1 6,4% 3,2% (preferred)* 279,8 4.782,7 633 9,6 9,5 1,7 1,7 0,7 0,6 8,6 7,7 1,9 1,9 2,5% 2,5% ĐuroĐaković 63,7 206,2 27 339,2 51,5 0,3 0,2 1,0 0,9 28,7 14,3 0,6 0,4 0,0% 0,0% 1515,9 2.018,7 267 72,1 15,9 1,7 1,1 2,4 2,7 42,6 10,1 1,3 0,8 11,2% 11,2% INA 4162,8 41.628,3 5.509 23,1 60,6 1,4 1,4 2,9 2,8 9,0 14,4 1,7 1,6 0,0% 0,0% Končar DiST 1080,0 291,4 39 8,7 8,8 0,4 0,4 1,6 1,5 5,8 8,2 0,4 0,5 4,9% 4,8% Končar Elektroindustrija 707,9 1.820,9 241 9,5 10,3 0,8 0,7 0,9 0,9 15,0 11,3 0,8 0,8 1,7% 0,0% 198,0 661,4 88 6,2 -3,7 0,2 0,2 0,9 1,1 4,5 -19,8 0,4 0,4 0,0% 0,0% Food Belje 63,1 518,2 69 -7,3 -5,1 0,3 0,3 0,4 0,5 5,9 4,9 0,5 0,4 0,0% 0,0% Čakovečki mlinovi 3260,0 342,3 45 39,6 12,2 0,3 0,3 0,7 0,7 6,6 6,1 0,4 0,4 2,3% 2,2% Jamnica 60025,0 1.328,1 176 13,2 9,8 1,1 1,1 1,4 1,3 7,0 6,7 1,0 0,9 0,0% 0,0% Kraš 400,0 549,4 73 21,9 299,5 0,5 0,6 0,8 0,9 8,8 11,3 0,8 0,8 3,3% 0,0% Ledo 8002,3 2.512,1 332 19,8 18,9 2,1 2,2 2,9 1,4 12,3 12,3 1,6 1,7 0,0% 0,0% 260,2 1.410,1 187 32,8 -65,6 0,4 0,4 0,8 0,8 8,6 10,6 0,8 0,7 0,0% 0,0% Viro 613,0 850,0 112 6,5 6,6 0,6 0,6 1,4 1,3 5,2 5,1 0,9 0,8 3,3% 0,0% Vupik 118,8 178,9 24 3,1 17,1 0,7 0,5 0,3 0,3 2,2 3,2 0,9 0,7 0,0% 0,0% Zvijezda 3738,3 374,8 50 9,1 11,6 0,3 0,3 0,4 0,4 6,0 7,4 0,4 0,4 0,0% 0,0% Telecom HT-Hrvatske Telekomunikacije 177,3 14.518,0 1.921 8,0 8,6 1,9 2,1 1,3 1,3 3,9 4,5 1,9 2,1 12,5% 11,6%

Construction Dalekovod 30,5 87,5 12 -0,3 -0,3 0,1 0,1 0,1 0,4 -6,9 -4,4 0,9 0,8 0,0% 0,0% Hidroelektra Niskogradnja 100,8 62,9 8 218,9 -2,6 0,1 0,1 0,3 0,4 4,7 -14,0 0,2 0,2 0,0% 0,0% Institut IGH 190,1 30,1 4 17,7 -0,1 0,1 0,1 0,1 0,1 9,6 -2,2 1,1 2,0 0,0% 0,0% Ingra 3,5 46,7 6 -0,5 -0,4 0,2 0,3 0,1 0,2 -30,9 -9,2 4,1 4,9 0,0% 0,0% 697,2 132,1 17 149,6 104,3 0,2 0,2 0,4 0,4 76,7 67,5 0,8 0,9 0,0% 0,0% 316,7 144,7 19 69,0 65,2 0,2 0,2 0,7 0,7 5,3 4,5 0,3 0,3 0,0% 0,0% Transportation 315,3 440,1 58 30,1 -5,9 0,8 0,9 0,3 0,3 5,3 18,4 2,1 3,6 0,0% 0,0% Jadranski naftovod 2311,0 1.716,7 227 28,0 17,7 4,2 4,3 0,5 0,5 7,4 7,3 4,1 4,6 0,0% 0,0% Luka Ploče 493,8 208,9 28 7,8 -7,2 1,4 1,9 0,5 0,6 12,3 -41,6 1,7 2,3 0,0% 0,0% 110,9 662,9 88 5,5 134,6 4,1 3,9 1,5 1,4 82,6 50,4 4,8 4,6 0,0% 0,0% 179,4 104,0 14 -13,3 -1,2 0,5 0,5 0,2 0,2 14,4 21,6 5,9 6,9 0,0% 0,0% Retail&Wholesale 666,4 2.221,9 294 40,5 33,6 0,5 0,5 1,5 1,5 8,4 4,6 0,9 0,5 0,0% 0,0% Konzum 125,7 2.854,4 378 8,3 13,9 0,2 0,2 1,1 1,0 3,5 3,8 0,3 0,3 1,4% 0,0% Tourism Arenaturist 189,9 414,4 55 -21,9 771,9 1,7 1,5 0,6 0,6 13,5 8,1 1,8 2,0 0,0% 0,0% HUP Zagreb 1199,2 543,6 72 -7,8 16,9 2,4 2,3 0,8 0,8 -19,4 7,3 2,8 2,5 1,3% 0,0% Imperial 233,0 148,2 20 56,7 24,7 1,4 1,3 0,5 0,5 7,6 7,2 2,6 2,4 0,9% 0,9% Jadranka 554,1 184,2 24 15,7 11,9 0,6 0,6 0,3 0,3 5,5 7,1 1,0 1,3 0,0% 0,0% Liburnia Riviera Hoteli 2396,7 725,3 96 174,9 44,1 3,6 3,4 0,8 0,8 15,1 11,3 2,9 2,7 0,0% 0,0% Maistra 81,2 888,7 118 -116,8 16,0 1,5 1,4 0,9 0,9 6,1 4,6 1,7 1,6 0,0% 0,0% Hoteli Makarska 175,0 195,9 26 79,6 27,4 3,2 3,0 1,0 0,9 12,9 9,6 2,9 2,6 0,0% 0,0% Plava Laguna 2222,0 1.343,5 178 17,9 18,2 2,6 2,5 0,9 0,9 6,9 6,6 2,6 2,6 4,1% 0,0% Riviera Adria 13,6 1.451,2 192 -44,3 29,7 2,0 1,5 0,9 0,9 12,0 7,7 3,0 2,2 0,0% 0,0% Solaris 621,5 383,9 51 -15,3 -56,6 2,2 2,0 0,5 0,5 9,2 8,1 2,8 2,7 0,0% 0,0% Valamar Adria Holding 162,5 1.213,6 161 -43,9 23,2 1,4 1,2 0,6 0,6 8,7 6,2 2,0 1,7 0,0% 0,0%

“ - “ stands for negative value of multiple

* multiples for Adris Group calculated on diluted basis

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CONTACTS FOR INSTITUTIONAL IN VESTORS:

GORAN BRODAR [email protected] +38542 66 09 61

IRENA FIŠTREK [email protected] +38542 66 09 64

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

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

RESEARCH DEPARTMENT:

NIKOLA BAKŠAJ [email protected] +385 42 66 09 74

STIVEN TOŠ [email protected] +385 42 66 09 75

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DISCLAIMER

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.

The publication has been of informative character and may not be deemed to be an invitation for purchase or sale of financial instruments being mentioned in it. Prices of financial instruments, and there from also return on investment from financial instruments may vary and cause profit or loss. Investment in financial instruments commented in this publication include certain risk (more about risks available in General Operating Conditions at Internet page (http://www.fima- vrijednosnice.hr/UserDocsImages/General%20conditions_FMVR%20novo.pdf), financial instruments are not necessarily available in all legal-regulatory environments, they may be illiquid and may be inadequate for some investors. Value or profit realized based on any financial instrument may vary and/or be under the influence of exchange rate differentials and other risks. Investment returns from the history are not indicators of future returns. Investors should independently make their decisions on investment, without relying on this publication.

By publishing this publication FIMA Securities Ltd. does not bear any responsibility for the consequences, or for the possible damages resulted from usage of the information and records published in this publication. Single opinions stated in this publication may change without prior notice.

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