FIMA Daily I n s i g h t

IN FOCUS - STOCK EXCHANGE July 12, 2011

ZSE STOCK MARKET Domestic equities finished the day in red territory with both stock w indices decreasing. CROBEX lost 1.24% to 2,192.89 pts and blue chip CROBEX Last 2.192,9 CROBEX 10 slipped 0.92% to 1,185.82 pts. Regular stock turnover % daily -1,24% amounted to HRK 22 million. % YTD 3,88% Integrated telecom operator HT (HTRA CZ) topped the liquidity board CROBEX10 last 1185,8 collecting HRK 5.5 million in turnover and slipping 0.1% to HRK 255.39. % daily -0,92% Paper producer Belišće (BLSCRA CZ) followed with HRK 4 million in % YTD 2,73% turnover trading in large blocks while its price slipped 0.7% to HRK Stock Turnover (HRK m) 22,01 685.0. Belišće’s majority owner Duropack last week became obliged to publish a takeover bid since it increased its stake by more than Total MCAP (HRK bn) 167,09 additional 10%. Source: www.zse.hr Port operator Luka Ploce (LKPCRA CZ) decreased 1.6% to HRK 1,028.0

after announcing the price of the recapitalization closed yesterday was CROBEX MOVERS HRK 850.0 per share while investors bought 200.353 shares.

-5,0% -4,0% -3,0% -2,0% -1,0% 0,0% 1,0% 2,0% Ex dividend pressured auto parts producer AD Plastik (ADPLRA CZ) into KORF-R-A a 4.3% drop to HRK 123.34. PTKM-R-A INA-R-A CKML-R-A Heavy constructor (THNKRA CZ) slipped 1.5% to HRK JNAF-R-A 1420.08. Company announced it signed HRK 24.5 million contract to HT-R-A -R-A build and reconstruction industrial hall in Zagreb. ERNT-R-A KNZM-R-A Other companies from construction sector saw mixed performance with KOEI-R-A construction consultancy IGH (IGHRA CZ) declining 4.1% to HRK ATGR-R-A KRAS-R-A 1550.0, construction engineering Ingra (INGRRA CZ) slipped 2.7% to THNK-R-A HRK 14.77, heavy constructor (DLKVRA CZ) decreased ADRS-P-A LKPC-R-A 2.4% to HRK 219.99 while heavy constructor Hidroelektra niskogradnja ATPL-R-A PODR-R-A (HDELRA CZ) increased 2.3% to HRK 131.98. DLKV-R-A INGR-R-A ULPL-R-A ISTT-R-A -R-A JDPL-R-A ZABA-R-A IGH-R-A * data is calculated using last traded price Source: www.zse.hr

CROBEX 3 MONTH MOVEMENT Source: www.zse.hr

2.400 70 2.300 60

2.200 50 2.100 40

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

20 HRKMillions 1.800 Trade deficit surges on oil to $50.2 billion in May 1.700 10 Worries Over Italy’s Debt Drag Down Markets 1.600 0 Turnover CROBEX EBay Suffers Setback on Trademark Infringement

Small business morale falls slightly in June

Analysis: Euro zone crisis enters dangerous new phase with Italy

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FIMA Daily I n s i g h t

IN FOCUS - ZAGREB STOCK EXCHANGE

Gredelj delivers four diesel engines to Sierra Leone LIQUIDITY TOP 5 In the presence of National Railway Equipment Company (NREC) Chairman HT-R-A 5.539.988 HRK Steven Beal and TZV Gredelj Chairman Ivan Tolic, the Croatian company BLSC-R-A 3.988.755 HRK PTKM-R-A 1.214.093 HRK launched the delivery of the next package of four GT26 diesel engines. The train ZABA-R-A 1.208.216 HRK engines will be shipped to Sierra Leone via the port. First four engines ATPL-R-A 1.060.002 HRK were delivered to Guinea in 2008, while this year five engines were delivered to

Source: www.zse.hr Mozambique, so Sierra Leone is the third destination where the Croatian- MARKET SENTIMENT American consortium will ship the diesel engines. The engines for hauling heavy No. of traded stocks 81 cargo trains will be used for the needs of African Minerals. The total value of the Increase 13 latest deal is USD 7m. This year, TZV Gredelj will manufacture and deliver seven Decrease 63 GT26 engines to Argentina and reconstruct and refurbish additional four engines. w/o change 5 (Source: www.limun.hr original text was published on Poslovni.hr) Source: www.zse.hr

MACROECONOMIC PARAMETERS Real GDP (Q2 2010)* 0,2% Luka Ploce raises more than HRK 170m in IPO Real GDP (2009)* -5,8% Luka Ploce (Ploce Port) has successfully completed a capital increase procedure CPI (September 10)** 1,4% through IPO. The preliminary results show the demand exceeded the number of Unemployment (October 10) 17,8% available shares, as investors subscribed for 256,683 shares, which is 56,330 or FX RATE HRK per EUR 7,21 28 percent more than was offered. After a detailed analysis of the offers FX RATE HRK per USD 5,82 received, the sales price of HRK 850 per share was defined, and all 200,253 Source: www.dzs.hr, www.hnb.hr shares were sold at this price. This means the total value of the capital increase * % change, yoy is HRK 170.3m. The investors included voluntary pension funds, investment ** % change, yoy, end of period funds, insurance companies, banks, investment companies, corporations and natural persons. The money raised will be used for the company’s ambitious LT CREDIT RATING investment plan, through expansion and modernization of capacities worth HRK FitchRatings: BBB- 1bn. (Source: www.limun.hr) Standard&Poor's: BBB- Moody's: Baa3

Source: www.hnb.hr Car dealers’ profits down 114 percent in 2010, layoffs followed

MIDPOINT EXCHANGE RATES OF THE CNB Automobile industry is one of the sectors that suffered the most in the crisis. Croatia’s automobile market was halved in 2009 compared with the record-high 2008, while last year it dropped by another 14 percent. However, although 9,0 dealers did worse in 2010, the majority managed to close the year in the green. 8,0 This indicates that they have managed to adjust to the market conditions, but at 7,0 a cost. The sector was marked by layoffs as the key part of cost cuts. Out of top 6,0 50 companies, Autozubak had the highest number of workers, 471, which is 30

5,0 down over 2009. Euroline had 215 (241 in 2009), Auto Kreso 232 (244 in 2009.

4,0 P. Z. Auto is the market leader by income. Together with Autozubak, which is

3,0 ranked third, it is clear that Pavo Zubak is the key player in the market. Auto Hrvatska posted the highest profit, HRK 56.6m, which is still almost 20m lower than in 2009. (Source: www.limun.hr original text was published in Poslovni HRK/EUR HRK/USD dnevnik) Source: www.hnb.hr

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FIMA Daily I n s i g h t

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)* 252,8 4.623,8 9,3 7,7 1,6 1,5 0,7 0,7 3,8 3,2 5,5 4,2 1,0 0,9 2,8% 2,8% Belišće 685,0 797,6 288,6 0,8 1,4 23,1 14.049,8 1,7 0,0% 1.405,5 1.871,6 15,0 1,3 1,6 10,3 20,4 0,9 8,5% INA 4.191,2 41.912,0 - 1,8 3,6 32,8 2.778,9 2,1 0,0% Konĉar DiST 1.303,5 327,9 10,0 0,5 2,4 6,1 9,2 0,5 7,9% Konĉar Elektroindustrija 630,7 1.622,3 14,4 0,6 1,1 14,7 46,6 0,6 0,0% 188,6 630,2 - 0,3 0,8 - - 0,5 0,0%

Food Ĉakoveĉki mlinovi 3.901,1 409,6 17,4 0,6 1,0 7,5 13,9 0,6 3,1% Kraš 469,0 644,2 17,0 0,6 1,0 7,8 14,3 0,8 4,3% Ledo 5.791,8 1.275,2 12,6 1,1 2,0 13,9 18,9 1,8 0,0% 316,4 1.714,8 - 0,5 1,1 1.395,5 - 0,8 0,0% Viro 441,2 611,8 174,7 1,1 2,5 13,5 21,2 1,8 0,0%

Telecom HT-Hrvatske Telekomunikacije 255,2 20.898,0 10,3 11,3 2,3 2,5 1,7 1,9 4,5 4,7 7,3 7,3 1,9 2,0 13,3% 9,8%

Construction Dalekovod 221,2 507,3 5,7 6,0 0,2 0,2 0,8 0,7 4,6 5,0 6,1 6,6 0,5 0,5 0,0% 0,0% Hidroelektra Niskogradnja 125,4 78,2 14,4 0,1 0,4 2,4 4,4 0,1 0,0% Institut IGH 1.565,8 248,3 23,2 0,3 0,6 14,0 31,1 1,4 0,0% Ingra 14,6 109,7 - 0,2 0,2 22,6 26,4 1,7 0,0% Tehnika 1.427,5 270,4 22,6 0,2 0,9 34,3 - 0,6 0,0% 228,0 104,2 - 0,1 0,6 4,5 - 0,2 6,0%

Transportation 619,5 864,6 - 17,8 1,1 1,0 0,6 0,6 11,6 7,7 373,3 20,7 2,6 2,4 3,2% 3,2% Jadroplov 131,3 214,8 - 0,9 0,3 11.741,9 - 1,0 0,0% Jadranski naftovod 2.900,0 2.154,2 18,2 4,8 0,7 7,0 13,7 4,5 0,0% Luka Ploĉe 993,9 221,3 53,8 1,4 1,2 12,1 40,3 1,5 0,0% 171,4 1.025,2 286,5 4,5 2,9 40,7 98,1 4,9 0,0% 571,5 331,5 6,4 1,4 0,6 8,9 22,5 4,7 6,9%

Retail/Wholesale 691,6 2.305,9 27,1 18,8 1,0 1,0 3,2 2,8 12,6 10,2 16,0 12,5 1,1 1,1 1,2% 1,3% Konzum 204,0 4.631,4 13,6 0,4 2,6 8,1 10,2 0,6 0,0% Magma 7,4 36,3 - 0,0 2,2 - - 0,6 0,0%

Tourism HUP - Zagreb 1.300,0 612,8 24,0 2,3 1,1 12,1 31,8 3,3 1,3% Istraturist Umag 278,9 1.303,7 34,7 3,5 1,8 14,7 27,6 4,8 0,0% Liburnia Riviera Hoteli 1.876,9 568,0 621,5 2,8 0,6 20,3 128,3 3,2 0,0% Maistra 64,2 702,4 - 1,5 0,8 19,9 - 3,3 0,0% Plava Laguna 1.865,0 1.127,7 22,7 2,3 0,8 6,6 18,4 2,3 4,0% Riviera Poreĉ 217,5 794,6 - 1,3 0,6 16,6 - 2,9 0,0%

“ - “ stands for negative value of multiple

* multiples for Adris Group calculated on diluted basis

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FIMA Daily I n s i g h t

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:

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

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FIMA Daily I n s i g h t

IN FOCUS - ZAGREB STOCK EXCHANGE

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