FIMA Daily Insight

IN FOCUS - STOCK EXCHANGE November 19, 2012 Investors on ZSE started the week in positive mood with both indices

ZSE STOCK increasing; CROBEX gained 0.69% to 1,750.67pts while blue chip CROBEX Last 1.750,7 CROBEX10 accelerated 0.44% to 987.96 pts. Total regular turnover of % daily 0,69% the day reached HRK 13.7 million. % YTD 0,60% Sugar producer (VIRORA CZ) topped the liquidity board with HRK 3.6 million in turnover. The price increased 0.2% to HRK 526.12. The CROBEX10 last 988,0 extraordinary General Assembly of Viro shall be held on 27. December % daily 0,44% 2012 (Thursday), beginning at 14.00 in the company’s headquarter in % YTD 1,21% Virovitica, Matije Gupca 54 with some of proposals being dividend Stock Turnov er (HRK m) 13,69 payout in the amount of HRK 20.0 per share and decision on delisting of ordinary shares of Viro from regular market. Total MCAP (HRK bn) 193,91

Source: w w w .zse.hr Heavy constructor (DLKVRA CZ) followed with HRK 0.9

million in turnover and was among top performers with 17.4% price -10,0% -5,0% 0,0% 5,0% 10,0% 15,0% 20,0% increase to HRK 79.96. Few days ago company admitted that Dalekovod DLKV-R-A is in very difficult, although not unsolvable financial situation, due to the ATPL-R-A freezing of accounts by several business banks. The board KOEI-R-A KORF-R-A hopes for reaching a solution within a reasonable period of time in order THNK-R-A to prevent that the contracted projects both on the domestic and foreign KRAS-R-A

ERNT-R-A markets might be brought into question. IGH-R-A

BLJE-R-A Diversified producer & distributor Atlantic Group (ATGRRA CZ) VIRO-R-A remained unchanged at HRK 508.0. Atlantic Grupa signed an agreement ULPL-R-A

LKPC-R-A on refinancing with the European Bank for Reconstruction and PODR-R-A Development (EBRD), the International Finance Corporation (IFC, ISTT-R-A member of the World Bank Group) and four commercial banking groups. ATGR-R-A KNZM-R-A The transaction will amount to EUR 307 million, which will be used to ADRS-P-A refinance Atlantic Grupa’s existing loans under more favorable ZABA-R-A

HT-R-A conditions (with an average interest rate of 4.71% and prolonged PTKM-R-A maturity). ADPL-R-A LKRI-R-A Heavy constructor (VDKTRA CZ) said on Monday it has signed DDJH-R-A a EUR 3.7 million deal with state-owned water utility Hrvatske Vode and RIVP-R-A INGR-R-A municipal water management company Vodovod Dubrovnik, after that price slipped 2.3% to HRK 340.0. * data is calculated using last traded price Source: www.zse.hr Building constructor (THNKRA CZ) signed a EUR 7.2 million CROBEX 3 MONTH MOVEMENT deal with the Zagreb-based Central Finance and Contracting Agency, after that price advanced 2.2% to HRK 730.01. 1.900 60

50 1.800 40

1.700 30

pts

20 HRK Millions 1.600 10 Daily news headlines (more available on www.fima-securities.com): Wall Street set to climb on optimism over budget talks 1.500 0 Turnover CROBEX Lowe’s quarterly sales, profit beat Wall Street views

Deutsche Bank CEO says bank sector too dependent on ECB cash source: www.zse.hr Spanish banks’ bad debts hit high

Intel CEO to step down in May 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

Finance Minister: Austerity measures alone not sufficient LIQUIDITY TOP 5 VIRO-R-A 3.583.639 HRK At its session on Monday, the Croatian government presented a draft state budget for 2013 with the planned revenues amounting to 113.7 billion, expenses DLKV-R-A 875.446 HRK totaling HRK 124.5 billion and a budgetary deficit amounting to HRK 10.9 billion HT-R-A 842.152 HRK or 3.1 percent of the GDP. Finance Minister Slavko Linic said that in the last INA-R-A 615.733 HRK quarter of 2012 the government expected a slower GDP decline, as the previous KORF-R-A 593.690 HRK quarter had shown signs of improvement in the industrial production and tourist Source: w w w .zse.hr trade, adding it was realistic to expected GDP to go down 1.1 percent in 2012. A MARKET SENTIMENT GDP growth of 1.8 percent in 2013 is also based on these indicators. "Clearly No. of traded stocks 64 austerity measures alone would not be sufficient," Linic said adding that also Increase 37 necessary was a parallel process of production growth and a growth of the Decrease 19 number of employees in the real sector. (Source: daily.tportal.hr) w/o change 8

Source: w w w .zse.hr

MACROECONOMIC PARAMETERS Croatian insurers 10-mo gross written premiums down 1.5%

Real GDP (Q1 2012)* -1,3% 's 27 insurers posted combined gross written premiums of 7.5 billion kuna Real GDP (2011)* 0,0% ($1.3 billion/994.4 million euro) in the first ten months of 2012, down 1.5% from CPI ( Q1 2012)** 1,5% a year earlier, the Croatian Insurance Bureau said. Gross written premiums from Unemployment ( Q1 2012) 19,9% non-life insurance fell by 2.2% to 5.6 billion kuna through October, while the life FX RATE HRK per EUR 7,51 insurance segment posted premiums of 1.9 billion kuna, 0.4% higher compared FX RATE HRK per USD 6,05 with a year earlier, the bureau said in a statement posted on its website on

Source: w w w .dzs.hr, w w w .hnb.hr Thursday. (Source: www.limun.hr original text was published on

* % change, y oy www.seenews.com)

** % change, y oy , end of period

CROATIA LT CREDIT RATING Croatia’s Tehnika gets 7.2 mln euro construction contract

FitchRatings: BBB- Croatian construction company Tehnika [ZSE:THNK-R-A] said on Monday it has Standard&Poor's: BBB- signed a 7.2 million euro ($9.2 million) deal with the Zagreb-based Central Moody's: Baa3 Finance and Contracting Agency. Under the contract, financed under EU's IPA Source: w w w .hnb.hr program, Tehnika will build a bio-science centre, the company said in a statement posted on the website of the Zagreb bourse. (Source: www.limun.hr MIDPOINT EXCHANGE RATES OF THE CNB original text was published on www.seenews.com)

9,0

8,0 Croatia's Atlantic Group in 307 mln euro refinancing deal with EBRD,

7,0 IFC, commercial lenders

6,0 Croatia's Atlantic Group said on Monday it has signed a 307 million euro ($392

5,0 million) deal with the European Bank for Reconstruction and Development

4,0 (EBRD), the International Finance Corporation (IFC) and four commercial lenders

3,0 to help refinance existing credits. Up to 272 million euro of the agreed funding will be used for balance sheet restructuring with a further 10 million euro allocated for energy efficiency projects and 25 million euro for working capital HRK-EUR HRK-USD Source: www.hnb.hr purposes, Atlantic Group said in a statement. (Source: www.limun.hr original For more information please contact ustext via mailwas [email protected] on www.seenews.com or on tel. +385 42 66) 09 60 2

FIMA Daily Insight

IN FOCUS - ZAGREB STOCK EXCHANGE

CROATIAN EQUITIES (FUNDAMENTAL MULTIPLES)

Average Mk cap Mk cap P/E P/S P/Bv EV/EBITDA EV/S Yd price (HRK) (HRK m) (EUR m) 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2011 2012 Industry AD Plastik 104,5 438,9 58 8,1 7,3 0,6 0,6 0,7 0,6 5,8 5,0 0,9 0,9 7,2% 7,7% (preferred)* 241,2 4.152,7 551 8,9 8,3 1,5 1,5 0,6 0,6 7,1 7,4 1,7 1,6 2,9% 2,9% ĐuroĐaković 73,7 238,5 32 -4,6 25,7 0,9 0,3 0,9 0,9 -18,8 14,4 1,7 0,5 0,0% 0,0% 1256,5 1.673,2 222 69,5 59,8 1,4 1,4 1,6 2,0 24,2 31,6 0,8 1,0 15,1% 13,5% INA 4275,9 42.759,2 5.671 44,8 23,7 1,6 1,4 3,3 3,0 13,4 9,1 2,0 1,7 1,1% 0,0% Končar DiST 887,8 231,0 31 6,2 6,9 0,3 0,3 1,4 1,3 2,4 4,2 0,2 0,3 6,2% 5,9% Končar Elektroindustrija 630,3 1.621,2 215 8,7 8,8 0,7 0,7 0,9 0,8 5,7 6,9 0,6 0,8 1,9% 1,9% 191,3 639,0 85 -4,7 6,0 0,3 0,2 1,0 0,8 -683,7 4,3 0,4 0,3 0,0% 0,0%

Food Belje 70,3 577,5 77 -9,1 -6,3 0,5 0,4 0,5 0,6 8,1 6,5 0,7 0,5 0,0% 0,0% Čakovečki mlinovi 3200,0 336,0 45 17,8 46,5 0,3 0,3 0,7 0,7 8,6 10,4 0,4 0,5 4,1% 2,3% Jamnica 38495,0 851,7 113 8,3 8,5 0,8 0,7 1,0 0,9 5,1 5,2 0,8 0,7 0,0% 0,0% Kraš 374,3 514,1 68 26,4 20,6 0,5 0,5 0,8 0,8 8,4 8,4 0,7 0,8 5,3% 3,5% 6701,0 1.475,4 196 14,5 11,6 1,4 1,2 2,0 1,7 12,2 9,5 1,4 1,3 0,0% 0,0% 274,0 1.485,2 197 17,7 21,4 0,4 0,4 0,9 0,9 6,2 7,9 0,7 0,8 0,0% 0,0% Viro 532,7 738,7 98 29,3 5,7 0,7 0,6 1,2 1,2 11,9 4,9 1,1 0,8 6,9% 0,0% Vupik 92,0 138,4 18 1,3 2,4 1,0 0,6 0,3 0,3 1,4 1,6 1,8 0,7 0,0% 0,0% Zvijezda 3500,0 350,9 47 16,0 8,6 0,4 0,3 0,4 0,4 6,5 4,9 0,4 0,3 0,0% 0,0%

Telecom HT-Hrvatske Telekomunikacije 206,1 16.878,0 2.238 9,2 9,3 2,0 2,1 1,5 1,5 3,8 3,7 1,6 1,6 11,0% 10,7%

Construction Dalekovod 74,9 214,8 28 234,1 -0,8 0,1 0,2 0,3 0,4 6,9 -6,7 0,5 1,0 0,0% 0,0% Hidroelektra Niskogradnja 99,4 62,0 8 35,7 62,1 0,1 0,1 0,3 0,3 4,8 5,1 0,2 0,2 0,0% 0,0% Institut IGH 430,7 68,3 9 7,4 42,4 0,1 0,1 0,2 0,1 7,1 10,7 1,0 1,3 0,0% 0,0% Ingra 3,1 42,1 6 -0,5 -0,5 0,2 0,2 0,1 0,1 -16,7 -35,9 2,8 4,7 0,0% 0,0% Tehnika 741,3 140,4 19 12,0 144,1 0,2 0,2 0,4 0,4 14,2 68,0 0,7 0,9 0,0% 0,0% Viadukt 340,3 155,5 21 -51,2 74,2 0,2 0,2 1,0 0,8 4,3 4,8 0,3 0,3 0,0% 0,0% Transportation 229,6 320,3 42 8,3 22,5 0,4 0,6 0,2 0,2 4,6 4,9 1,5 2,0 0,0% 0,0% Jadranski naftovod 2363,6 1.755,8 233 16,5 24,2 4,2 4,3 0,6 0,5 6,0 6,4 3,8 3,8 2,5% 0,0% Luka Ploče 562,5 237,9 32 15,2 9,0 1,6 1,6 1,1 0,6 8,1 14,5 1,3 1,8 0,0% 0,0% Luka 115,2 689,1 91 21.155 5,7 3,7 4,2 2,0 1,5 40,4 68,0 3,9 4,1 0,0% 0,0% 212,0 122,9 16 1,3 -15,7 0,5 0,6 0,2 0,2 6,1 15,5 4,0 6,3 28,8% 0,0%

Retail&Wholesale Atlantic Grupa 508,0 1.693,8 225 15,9 30,9 0,7 0,4 1,2 1,1 17,1 7,4 1,7 0,8 0,0% 0,0% Konzum 144,2 3.272,6 434 7,9 9,5 0,3 0,3 1,5 1,3 3,5 3,5 0,3 0,3 1,2% 0,0%

Tourism HUP - Zagreb 1034,1 468,8 62 19,2 -6,7 2,1 2,1 0,6 0,7 12,0 -17,9 4,0 2,6 1,6% 1,5% Istraturist Umag 155,4 726,6 96 -25,8 32,5 1,9 1,7 1,0 1,0 10,3 9,1 3,2 2,8 0,0% 0,0% Liburnia Riviera Hoteli 1850,0 559,9 74 -11,6 104,9 2,9 2,8 0,6 0,6 -44,1 13,0 2,7 2,6 0,0% 0,0% Maistra 52,8 577,3 77 -40,3 -78,2 1,1 1,0 0,6 0,6 4,2 3,5 1,1 1,0 0,0% 0,0% Plava Laguna 1900,0 1.148,8 152 19,1 14,0 2,4 2,2 0,8 0,8 6,8 5,8 2,6 2,3 4,8% 4,8% Valamar Adria Holding 110,4 824,6 109 -8,5 -27,8 1,1 0,9 0,4 0,4 13,5 10,1 2,8 2,3 0,0% 0,0%

“ - “ stands for negative value of multiple

* multiples for Adris Group calculated on diluted basis

For more information please contact us via mail [email protected] or on tel. +385 42 66 09 60 3

FIMA Daily Insight

IN FOCUS - ZAGREB STOCK EXCHANGE

CONTACTS FOR INSTITUTIONAL IN VESTORS:

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

GORAN BRODAR [email protected] +38542 66 09 61

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

For more information please contact us via mail [email protected] or on tel. +385 42 66 09 60 4

FIMA Daily Insight

IN FOCUS - ZAGREB STOCK EXCHANGE

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