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PROFILE PROFILE INTERVIEW PODRAVKA MERCATOR NESTLE > PAGE 2 > PAGE 12 BULGARIA > PAGE 20

OCTOBER-NOVEMBER 2014 036

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Alternative Names Podravka JSC; Podravka prehrambena industrija d.d.; Podravka Food Processing Industry, Incorporated; Podravka Inc. Podravka d.d. Incorporation Date Jan 1, 1934

Podravka d.d. is one of the major food process- ing companies in Croatia. The company op- contacts erates in three main business segments - food, beverages and pharmaceuticals. Podravka d.d. holds an ISO 9001:2008 Qual- ity management systems certificate, valid Address E-mails 32 Ante Starcevica [email protected] until April 26, 2016. Str., 48000 [email protected] The company’s shares are included in the Koprivnica, Croatia [email protected] blue-chip index CROBEX of the Zagreb Stock [email protected] Exchange. Telephones +385 48 651 144 Podravka d.d.’s shares are included in the +385 48 651 200 Websites Dow Jones STOXX Sub Balkan 30 index that +385 48 651 228 www.podravka.com combines share price trends of the 30 larg- +385 48 653 225 est companies from Croatia, Macedonia, Ser- Faxes bia and Slovenia. +385 48 622 518 +385 48 220 562 Last updated on Oct 27, 2014. +385 48 622 621 company history

1934 – A fruit processing company in May 19, 2006 - Podravka starts trad- M006A7). (Editor’s Note: Commercial Koprivnica is established by the Wolf ing its corporate bonds on the Official papers are an unsecured, short-term brothers. Bond Market of the Zagreb Stock Ex- debt instrument issued by a corpora- change under the ticker PODR-O-115A, tion, typically for meeting short-term 1947 – The company is nationalised ISIN number: HRPODRO115A4. Bonds liabilities.) and named Podravka. are issued in the amount of HRK 375 mln with maturity in 2011 and annual February 2009 - Podravka d.d. sets up 1972 - Pharmaceutical plant Belupo is interest of 5.125%. its subsidiary in Turkey. set up in Ludbreg, northern Croatia. 2007 - Podravka d.d. acquires Polish Jan 24, 2014 - Podravka d.d. takes 1973 - Danica Mesna Industrija is seasoning brands Warzywko and over its wholly owned subsidiary Lero established as a meat processing Perfekta, as well as local beverages d.o.o., which is written-off the Trade factory. brand Lero. register and no longer exists as a separate legal entity. 1993 – Podravka is privatised and reg- Oct 15, 2008 - Podravka d.d. acquires istered as a joint stock company. 100% in Lero d.o.o., Rijeka, a company Mar 26, 2014 - Podravka d.d. takes active in manufacturing and trade in over its wholly owned subsidiary Sept 25, 1997 - Podravka d.d. takes non-alcoholic beverages. Ital-Ice d.o.o., which is written-off the over local company Zlatka d.o.o. Trade register and no longer exists as 2008 - Podravka sets up its restaurant a separate legal entity. Dec 7, 1998 – Podravka d.d. is listed on keeping company Podravsko Ugos- the Zagreb Stock Exchange. titeljstvo d.o.o. in Koprivnica. August 2014 - The company acquires a 53.86% majority stake in Croatian 2003 – Podravka d.d. launches the Feb 10, 2009 - Podravka d.d. issues its fish products manufacturer Mirna d.d. Podravka Academy of Management commercial papers with a nominal for HRK 198.2 mln. (POMAK) in cooperation with the value of EUR 18 mln and maturing Faculty of Economics in Zagreb. in 364 days (Stock Symbol: PODR- Last updated on Oct 27, 2014. M-006A, ISIN number: HRPODR-

management 20.52% Primary Industry: Board of Directors and Executives: CROATIA 18.51% Food Zvonimir Mrsic | Chairman of the Board and CEO SOCIETE GENERALE - Secondary Industry: Jadranka Ivankovic | Member of the Board SPLITSKA BANKA D.D. Diversified Holdings Olivija Jakupec | Member of the Board CROATIA Legal Form: Miroslav Klepac | Member of the Board Joint Stock Company Hrvoje Kolaric | Member of the Board Status: OWNERSHIP Active Supervisory Board: NIN: Dubravko Stimac | Chairman of the Board 010006549 Mato Crkvenac | Deputy-Chairman of the Board Quoted: YES Dinko Novoselec | Member of the Board ISIN: Petar Vlaic | Member of the Board HRPODRRA0004 Petar Miladin | Member of the Board 60.97 Tickers - Martinka Mardjetko-Vukovic | Member of the Board OTHER PODR-R-A (Zagreb Stock Ivo Druzic | Member of the Board Exchange) - PRIMARY Milan Stojanovic | Member of the Board Ivana Matovina | Member of the Board 04 Subsidiaries & Affiliates

Direct Indirect Majority Name Holding Holding Stakeholder Active Country Mirna d.d. 53.86% YES YES Croatia Studenac d.o.o. 100% YES YES Croatia Lero d.o.o. 100% YES NO Croatia Ital - Ice d.o.o. 100% YES NO Croatia KOTI Nekretnine d.o.o. 100% YES NO Croatia Podravka Inzenjering d.o.o. 100% YES NO Croatia Poni Trgovina d.o.o. 100% YES NO Croatia Belupo d.d. 100% YES YES Croatia Danica d.o.o. 100% YES YES Croatia Podravka - Polska Sp.z.o.o. 100% YES YES Poland Podravka International Kft 100% YES YES Hungary Podravka d.o.o. 100% YES YES Slovenia Podravka d.o.o. 100% YES YES Serbia Podravka - Int. Deutschland Konar GmbH 100% YES YES Germany Podravka d.o.o. 100% YES YES Montenegro Sana d.o.o. 100% YES YES Slovenia Podravka - International s.r.l. 100% YES YES Romania Podravka d.o.o. 100% YES YES Macedonia Podravka International EOOD 100% YES YES Bulgaria Podravka International Inc. 100% YES YES USA Podravka International Ptv Ltd. 98.88% YES YES Australia Podravka - International s.r.o. 75% 25% YES YES Slovakia Podravka International 75% 25% YES YES Turkey Lagris a.s. 100% YES YES Czech Republic Podravka d.o.o. Sarajevo 100% YES YES Bosnia and Herzegovina Belupo d.o.o.e.l. 100% YES YES Macedonia Belupo s.r.o. 100% YES YES Slovakia Belupo Ljubljana 100% YES YES Slovenia Ljekarne Deltis Pharm Koprivnica 100% YES YES Croatia Farmavita d.o.o. 65% YES YES Bosnia and Herzegovina

Products & Services

Podravka d.d. is engaged in the acqui-  instant soups, pastas and risottos,  tomato-based products sition, management, evaluation and bouillon cubes  pasteurised, sterilised and frozen sale of stakes in domestic and foreign  dessert, snacks, wafers and ice vegetables companies. cream  bakery products  natural mineral water, spring water,  meat products Podravka d.d. also markets the prod- non-alcoholic beverages, vitamin  pharmaceuticals ucts of its subsidiaries: instant drinks and tea  universal food complements, sea-  jam and honey soning and sauces  fruit in syrup and processed fruit Last updated on Oct 27, 2014.

Capacity Podravka d.d. is headquartered in Koprivnica, northern Croatia. It also has a business unit in Croatia’s capital Zagreb.

Last updated on Oct 27, 2014. 05 Market & Sales

Podravka d.d.’s main foreign markets are: Armenia, Aus- and a gross profit of HRK 305.9 mln, up 2.0% on the year. tralia, Austria, Belarus, Bosnia and Herzegovina, Bulgaria, Canada, the Czech Republic, Estonia, Germany, the UK, In April 2014 Podravka d.d. signed an agreement with Hungary, Italy, Kazakhstan, Kosovo, Kyrgyzstan, Latvia, Croatian PIK Vrbovec d.d. to take over its canned meat busi- Lithuania, Macedonia, Montenegro, Poland, Romania, Rus- ness. The deal covers the transfer of trademarks, recipes sia, Serbia, Slovakia, Slovenia, Switzerland, USA, as well as and equipment as well as the takeover from PIK Vrbovec countries from Africa, the Middle East and South America. d.d. of the manufacturing business and sale of canned meat pate and canned meat products. In July 2014 the company was granted a EUR 73.4 mln syndicated loan by the European Bank for Reconstruction Podravka d.d. reported a non-consolidated net loss of HRK and Development (EBRD) and the Austria-based banks Er- 4.220 mln in the first quarter of 2014, compared to a net ste Group Bank AG, Raiffeisen Bank International AG and loss of HRK 12.844 mln in the same period of 2013. The Unicredit Bank Austria AG. company’s total revenue went down to HRK 392.6 mln in the first quarter of 2014 from HRK 423.7 mln in the first For the first six months of 2014 the company posted a net quarter of 2013. sales revenue of HRK 832.4 mln, down 6.0% on the year,

Podravka d.d.'s Revenue by Segment (in HRK) Segment 2013 2012 Culinary 932,235,000 902,821,000 Sweets, snacks and beverages 174,036,000 165,184,000 Baby food, breakfast and other food products 912,314,000 899,064,000 Meat and fish products 281,566,000 344,071,000 Other 349,656,000 345,818,000 Pharmaceuticals 851,270,000 825,716,000 Total 3,501,077,000 3,482,674,000

Podravka Group's Revenue by Region (in HRK) Region 2013 2012 Croatia 1,483,479,000 1,579,367,000 South-East Europe 916,122,000 877,709,000 Central and Eastern Europe 788,673,000 727,922,000 Western Europe and others 312,803,000 297,676,000 Total 3,501,077,000 3,482,674,000

Podravka d.d. owns the following brands:  Aji-Shio for seasoning;  Vegeta for universal food complement;  Podravka milk rice for milk rise;  Podravka soups for packet soups;  Podravka wafers for wafers;  Talianetta for pastas and risottos;  Podravka rice for rice;  Fant for seasoning mixes and sauces;  Podravka ice cream for ice cream;  Podravka cubes for bouillon cubes;  Fini-Mini for instant soups  Dolcela for desserts; Lino for Baby’s and children’s food;  Cokolesnik for instant wheat flakes with chocolate.  Kviki for snacks;  Studenac for natural mineral water; Major clients: Varteks d.d., Gastro Grupa d.o.o., Agrokor d.d.,  Studena for spring water; Droga Kolinska DD, Dukat d.d. (formerly known as Lura d.d.),  Deit for non-alcoholic, low calorie beverages; Gavrilovic d.o.o., Lola Ribar d.d., Medika d.d., Perutnina Ptuj  Ponita for vitamin instant drinks; - Pipo d.o.o., The Coca-Cola Company.  Podravka tea for tea;  Podravka fruit for jams, honey, fruit in syrups and proc- Major competitors: essed fruits;  Agro sim d.o.o. (Ivanic Grad, Croatia)  Podravka vegetables for sterilised vegetables;  Agrocroatia d.o.o. (Zagreb, Croatia) 06

 Agroludbreg d.d. (Mali Bukovec, Croatia)  Medi-Lab d.o.o. (Zagreb, Croatia)  Agromix d.o.o. (Slavonski Brod, Croatia)  Medical Intertrade d.o.o. (Sveta Nedjelja, Croatia)  Agroplod d.o.o. (Zagreb, Croatia)  Medifarm d.o.o. (Varazdin, Croatia)  Alira d.o.o. (Zadar, Croatia)  Zgb-konzum d.o.o. (Zagreb, Croatia)  Ascommerce d.o.o. (Visnjevac, Croatia)  Belje d.d. (Darda, Croatia) In November 2009 Podravka d.d. and Serbian food process-  Dohomont d.o.o. (Gorican, Croatia) ing company Florida Bel signed a contract for the produc-  Dr. Oetker d.o.o. (Zagreb, Croatia) tion of the Kviki brand, intended for sale in Croatia and  Droga d.o.o. (Buje, Croatia) Southeastern European markets.  Goodness Foods Trading (Daventry, Croatia) In April 2009 the company disclosed its plans to build a  Gp Obsivac d.o.o. (Metkovic, Croatia) pharmaceutical plant in Bosnia and Herzegovina through  Imes d.d. (Zagreb, Croatia) its pharmaceutical subsidiary Belupo d.d.  Improm d.o.o. (Krizevci, Croatia)  Kostelac d.o.o. (Orahovica, Croatia) Last updated on Oct 27, 2014.

Investments

Podravka d.d. invested HRK 94.7 mln in research and inno- opened in Dugopolje, southern Croatia. vation in 2012. In 2005 and 2006 Podravka d.d. invested a total of HRK 100 In September 2011 the company launched an investment mln in the construction of a new plant for Lino children’s cycle worth around HRK 100 mln. Investments are aimed at food and cereals, in the industrial zone of Danica in Ko- increasing production and the efficiency of business opera- privnica, northern Croatia. tions.

In 2009 a new warehouse and distribution center was Last updated on Oct 27, 2014.

Employment

2013-12-31 3,166 Non-Consolidated 2013-12-31 5,717 Consolidated 2012-12-31 6,115 Consolidated 2011-12-31 6,377 Consolidated 2010-12-31 6,570 Consolidated 2009-12-31 6,534 Consolidated 2008-12-31 6,706 Consolidated 07 Financial Information & Key Financial Ratios

Financial Year - end 2013 2012 Type Non-consolidated Non-consolidated Currency HRK HRK

Balance Sheet - Assets 1. Non Current Assets 1,216,973,678 1,479,050,199 2. Fixed (tangible) assets 693,485,729 840,975,306 3. Intangible assets 98,325,947 115,583,416 4. Other 0 0 5. Financial non current assets 387,810,822 497,761,469 6. Expenses for future periods and Deffered taxes 37,351,180 24,730,008 7. Current Assets 1,173,654,394 1,027,867,684 8. Inventories 364,525,930 305,405,025 9. Trade and other receivables 567,831,305 520,110,791 10. Financial Assets 168,389,169 161,304,155 11. Cash and equivalents 72,907,990 41,047,713 12. Total Assets 2,399,261,780 2,517,097,762

Balance Sheet - Equity and liabilities 13. Total Equity 1,134,309,526 1,081,827,471 14. Capital 1,084,000,600 1,626,000,900 15. Reserves -1,057,197 -12,348,787 16. Financial result 51,366,123 -531,824,642 17. Non current 527,132,538 683,721,067 18. Trade and other liabilities 0 0 19. Other financing 527,132,538 683,721,067 20. Current liabilities 641,787,764 655,821,989 21. Short term debts, including tax liabilities and provisions 638,839,122 643,789,148 22. Other short term liabilities 2,948,642 12,032,841 Total Liabilities 1,168,920,302 1,339,543,056 23. Total Equity and Liabilities 2,399,261,780 2,517,097,762 24. Working capital 531,866,630 372,045,695 25. Number of Employees 3,166 0

Profit and Loss Account 26. Operating revenue 1,912,179,508 1,925,335,490 27. Net Sales Revenue 1,876,859,005 1,877,713,677 Export Turnover 0 0 28. Financial Revenue 138,112,976 27,084,714 29. Total Operating revenue 2,050,292,484 1,952,420,204 30. Operating Profit 0 24,043,476 301. Operating Loss 5,855,099 0 31. Extraordinary revenue 0 0 32. Total revenue 2,050,292,484 1,952,420,204 33. Profit before taxes 38,744,951 0 331. Loss before taxes 0 23,280,589 34. Operating Expenses 1,918,034,607 1,901,292,014 35. Cost of goods sold 0 0 36. Expenses for materials 1,216,340,368 1,242,007,300 37. Expenses for employees 353,153,057 388,282,194 38. Depreciation and Amortisation 84,985,112 85,504,692 39. Other 263,556,070 185,497,828 40. Financial Expenses 93,512,926 74,408,779 Interest Paid 93,512,926 70,940,868 41. Total operating expenses 2,011,547,533 1,975,700,793 42. Gross Profit 0 0 43. Extraordinary expenses 0 0 08 44. Total Expenses 2,011,547,533 1,975,700,793 45. Expenses for taxes -12,621,172 -2,589,780 46. Profit/ Loss after taxation 51,366,123 -20,690,809 47. Minority Interest 0 0 48. Net Profit for the period 51,366,123 0 481. Net Loss for the period 0 20,690,809 49. Financial Profit/ Loss 44,600,050 -47,324,065 50. Extraordinary Profit/ Loss 0 0 51. Added value 476,883,120 450,506,297

Key Ratios 52. ROE 4.53% -1.91% 53. ROA 2.14% -0.82% 54. ROIC 4.74% -3.79% 55. OPERATING MARGIN -0.31% 1.25% 56. NET PROFIT MARGIN 2.74% -1.10% 57. TOTAL LIABILITIES/ASSETS 48.72% 53.22% 58. TOTAL LIABILITIES/EQUITY 103.05% 123.82% 59. CURRENT LIQUIDITY RATIO 1.83 1.57 60. QUICK RATIO 0.11 0.06 61. INVENTORY TURNOVER RATIO 0 0 62. FIXED ASSETS TURNOVER RATIO 1.57 1.3 63. TOTAL ASSETS TURNOVER RATIO 0.8 0.76 64. EBIT 83,345,001 -70,604,654 65. EBITDA 168,330,113 14,900,038 66. NCF 136,351,235 64,813,883

Financial Year - end 2013 2012 2011 Type Consolidated Consolidated Consolidated Currency HRK HRK HRK

Balance Sheet - Assets 1. Non Current Assets 1,517,762,204 1,721,143,991 1,845,090,492 2. Fixed (tangible) assets 1,218,263,632 1,400,738,836 1,476,007,000 3. Intangible assets 244,319,137 279,641,787 304,127,331 4. Other 0 0 0 5. Financial non current assets 5,606,408 5,343,366.63 4,323,161 6. Expenses for future periods and Deffered taxes 49,573,027 35,420,000 60,633,000 7. Current Assets 1,923,619,895 1,881,578,696 1,919,462,881 8. Inventories 727,969,978 695,533,146 738,432,251 9. Trade and other receivables 1,009,434,943 1,062,608,440 1,021,565,727 10. Financial Assets 6,753,946 5,229,582 13,505,061 11. Cash and equivalents 179,461,027 118,207,528 145,959,842 12. Total Assets 3,458,156,504 3,617,672,309 3,788,080,745

Balance Sheet - Equity and liabilities 13. Total Equity 1,691,388,136 1,627,791,411 1,629,147,379 14. Capital 1,084,000,600 1,626,000,899 1,626,000,900 15. Reserves 227,647,333 132,364,404 62,319,578 16. Financial result 345,700,354 -162,600,774 -93,960,462 17. Non current 578,448,370 733,553,063 901,305,676 18. Trade and other liabilities 5,576,522 6,298,000 6,997,000 19. Other financing 572,871,848 727,255,063 894,308,676 20. Current liabilities 1,041,986,074 1,106,272,026 1,128,673,701 09 21. Short term debts, including tax liabilities and provisions 1,037,761,723 1,093,342,449 1,116,201,234 22. Other short term liabilities 4,224,351 12,929,576 12,472,467 Total Liabilities 1,620,434,444 1,839,825,089 2,029,979,378 23. Total Equity and Liabilities 3,458,156,505 3,617,672,309 3,788,080,745 24. Working capital 881,633,821.61 775,306,669 790,789,179 25. Number of Employees 5,717 6,115 6,377

Profit and Loss Account 26. Operating revenue 3,693,549,702 3,700,062,176 3,708,378,610 27. Net Sales Revenue 3,626,011,410 3,626,666,306 3,625,161,695 Export Turnover 0 0 1,883,338,000 28. Financial Revenue 44,186,986 38,065,425 47,877,829 29. Total Operating revenue 3,737,736,688 3,738,127,601 3,756,256,439 30. Operating Profit 135,287,685 97,687,162 160,247,995 301. Operating Loss 0 0 0 31. Extraordinary revenue 0 0 0 32. Total revenue 3,737,736,688 3,738,127,601.44 3,756,256,439 33. Profit before taxes 69,822,853 30,113,688.62 59,677,394 331. Loss before taxes 0 0 0 34. Operating Expenses 3,558,262,017 3,602,375,013 3,548,130,615 35. Cost of goods sold 0 0 0 36. Expenses for materials 2,305,821,099 2,357,402,245 2,320,972,838 37. Expenses for employees 666,283,968 720,698,292 718,177,465 38. Depreciation and Amortisation 148,302,573 153,689,989.40 159,812,065 39. Other 437,854,377 370,584,487 349,168,247 40. Financial Expenses 109,651,818 105,638,899 148,448,430 Interest Paid 109,650,705 102,170,988 138,884,512 41. Total operating expenses 3,667,913,835 3,708,013,912 3,696,579,045 42. Gross Profit 0 0 0 43. Extraordinary expenses 0 0 0 44. Total Expenses 3,667,913,835 3,708,013,912 3,696,579,045 45. Expenses for taxes 1,445,908.29 45,569,723 19,060,300 46. Profit/ Loss after taxation 68,376,944 -15,456,035 40,617,094 47. Minority Interest 0 0 0 48. Net Profit for the period 68,376,944 0 40,617,094 481. Net Loss for the period 0 15,456,035.25 0 49. Financial Profit/ Loss -65,464,832 -67,573,474 -100,570,601 50. Extraordinary Profit/ Loss 0 0 0 51. Added value 884,409,394 904,501,970.02 937,666,924

Key Ratios 52. ROE 4.04% -0.95% 2.49% 53. ROA 1.98% -0.43% 1.07% 54. ROIC 0.18% -1.49% -1.54% 55. OPERATING MARGIN 3.66% 2.64% 4.32% 56. NET PROFIT MARGIN 1.89% -0.43% 1.12% 57. TOTAL LIABILITIES/ASSETS 46.86% 50.86% 53.59% 58. TOTAL LIABILITIES/EQUITY 95.81% 113.03% 124.60% 59. CURRENT LIQUIDITY RATIO 1.85 1.7 1.7 60. QUICK RATIO 0.17 0.11 0.13 61. INVENTORY TURNOVER RATIO 0 0 0 62. FIXED ASSETS TURNOVER RATIO 2.43 2.15 2.01 63. TOTAL ASSETS TURNOVER RATIO 1.07 1.02 0.98 64. EBIT 4,358,021 -37,459,785 -40,893,207 65. EBITDA 152,660,594 116,230,204 118,918,858 66. NCF 216,679,517 138,233,954 200,429,159 010 INTERVIEW Mondelez Bulgaria expects double-digit revenue growth in 2014

million levs in revenues. “The funds we invest are a portion Mondelez Bulgaria’s strong financial of our revenues and, consequently, results come against the backdrop as revenues grow in double digits, so of a falling market, meaning that the do investments,” Naydenov noted. company is stealing market share from its rivals, Naydenov also said. Sustainability and wellbeing, too, “Until 2009 the market was grow- are at the focus of the company’s ing in double digits and all market development strategy. Mondelez players were happy as they were International plans to cut its energy achieving their growth targets but and water consumption significantly that was due to the fact that clients by 2015 and to reduce its manufac- were consuming more. After 2009, turing waste to zero by 2018. The however, and in 2012 and 2013 in company is also working on a mind- particular, consumption dropped ful snacking programme, aiming seriously,” he commented. to reduce the amount of salt and At the same time Mondelez Bul- saturated fats in its products by 10% garia’s market share in the three by 2020. categories in which it operates - Ivaylo Naydenov, chocolates, biscuits and coffee - has Mondelez Bulgaria operates produc- Mondelez Bulgaria general manager been increasing since the beginning tion plants in Svoge and in Kostin- of the year, the company’s general brod, both near the capital Sofia. manager noted. Some of its most popular brands are the Moreni biscuits, and the Mondelez Bulgaria, the Bulgarian “However, we understand that this Svoge, Milka and Mlechen chocolate unit of snack company Mondelez process cannot go on forever since it tablets. International, expects to post double- is very hard to grow in the segments digit revenue growth in both value where your market share is already Mondelez Bulgaria exports about a and volume this year despite a shrink- big,” he added. “We are hoping that half of its products to EU member ing market, the company’s general the categories in which we operate states, Russia and Ukraine, among manager said. will start growing little by little.” others. The snack producer intends to “This year we had some very suc- launch a number of new products Mondelez International, previ- cessful launches of new products next year, mainly in the biscuits seg- ously known as Kraft Foods, entered and other very successful activities, ment, which it considers as underde- Bulgaria in 1993 when it bought the which helped us achieve growth veloped and holding a big potential, Republica confectionery factory in in revenues,” Ivaylo Naydenov told as well as the chocolate segment, Svoge from the Bulgarian govern- SeeNews on the sidelines of a media which accounts for half of its sales. ment. event in Sofia. Mondelez Bulgaria allocates a large The global company operates in 165 The company’s nine-month financial part of its investments to marketing countries. performance is in line with plans, he and new product launches, Nayde- (1 euro = 1.95583 Bulgarian levs) added, without elaborating further. nov said, without quoting figures. In 2014, in line with the growth in http://wire.seenews.com/news/ Last year the company posted a revenues, Mondelez Bulgaria plans interview-mondelez-bulgaria-sees- profit of 24.9 million levs ($16.1 to increase its total investments by double-digit-revenue-growth- million/12.7 million euro) on 236.4 4.0 million levs, or 20%. in-2014-444852 011 For more analytical and market reports 012 PROFILE visit http://intelligence.seenews.com/

Alternative Names Poslovni Sistem Mercator JSC; Mercator d.d.; Poslovni Sistem Mercator JSC Incorporation Date Mercator d.d. Jan 1, 1949

Poslovni Sistem Mercator d.d. is a Slove- nian retail chain operating in Southeast Europe. contacts

The company holds:  an ISO 9001:2008 Quality management systems certificate, valid until Sept 30, Address E-mails 107, Dunajska Str., 1000 [email protected] 2015 Ljubljana, Slovenia  an ISO 14001:2004 Environmental man- Websites agement systems certificate, valid until Telephones www.mercator.si +386 1 560 1000 www.mercatorgroup.si Sept 30, 2015. +386 1 560 1600

Poslovni Sistem Mercator d.d. is included Faxes +386 1 560 1071 in the SBITOP blue-chip index of Ljubljana +386 1 560 1074 Stock Exchange. +386 1 560 1063

Last updated on Oct 27, 2014. company history 013 1949 - Wholesale company Zivila exists as a separate legal entity. of Companies and no longer exists as Ljubljana is founded. It is the pred- a separate legal entity. ecessor to Poslovni sistem Mercator. Mar 2, 2009 - Poslovni Sistem Merca- tor d.d. takes over Pekarna Grosuplje Apr 28, 2014 - The company takes 1953 - Mercator registers as a whole- proizvodnja kruha, svezega peciva over Modiana, prodaja tekstila, d.o.o., sale enterprise with its headquarters in slascic, d.d., which is written off which is written off the Trade Register in Ljubljana. the Trade Register of Companies and of Companies and no longer exists as no longer exists as a separate legal a separate legal entity. Dec 5, 1989 - Poslovni sistem Mer- entity. cator is registered as a joint stock May 21, 2014 - The company takes company. May 11, 2009 - The company takes over M - nepremicnine, upravljanje over Lesno Podjetje Interier d.o.o., z nepremicninami d.o.o., which is 1995 – Slovenia’s largest public joint- which is written off the Trade Register written off the Trade Register of stock company Mercator is privatised. of Companies and no longer exists as Companies and no longer exists as a State-owned funds and some 63,000 a separate legal entity. separate legal entity. small shareholders become owners of the company. May 16, 2012 - Poslovni Sistem Merca- June 27, 2014 - The Croatian whole- tor d.d. takes over Vesna Trgovsko sale and retail company Agrokor d.d. Dec 22, 1997 - Poslovni Sistem Merca- podjetje d.d., which is written off acquires a 53.12% stake in Poslovni tor d.d. lists on the Ljubljana Stock the Trade Register of Companies and Sistem Mercator d.d. for EUR 172 mln Exchange. no longer exists as a separate legal and becomes its majority shareholder. entity. Later Agrokor d.d. increases its stake Feb 27, 2009 - The company takes to 81.67%. over Evolution, proizvodnja in trgovi- Apr 18, 2013 - The company takes over na, d.d., which is written off the Trade M - Tehnika, trgovina in storitve, d.d., Register of Companies and no longer which is written off the Trade Register Last updated on Oct 27, 2014.

management

Primary Industry: Board of Directors and Executives: 8.85% 81.67% Wholesale/Retail Anton Balazic | Chairman of the Board OTHERS AGROKOR D.D. Legal Form: Joint Stock Drago Kavsek | Member of the Board CROATIA Company Igor Marosa | Member of the Board Status: Active NIN: 5300231000 Supervisory Board: Quoted: YES Ante Todoric | Chairman of the Board ISINs: SI0031100082 Matej Lahovnik | Deputy-Chairman of the Board Tickers - MELR Damir Kustrak | Member of the Board OWNERSHIP (Ljubljana Stock Ivan Crnjac | Member of the Board Exchange) - PRIMARY Vesna Stojanovic | Member of the Board Veljko Tatic | Member of the Board Darko Knez | Member of the Board 9.48% Ivica Mudrinic | Member of the Board SOCIETE GENERALE-SPLITSKA BANKA, D.D. Ivan Valand | Member of the Board CROATIA 014 Subsidiaries & Affiliates

Direct Indirect Majority Name Holding Holding Stakeholder Active Country Mercator - Optima d.o.o. - non-existent 100% YES NO Slovenia Mercator - Emba d.d. 100% YES YES Slovenia Mercator – B EOOD - in liquidation 100% YES YES Bulgaria Investment Internacional d.o.o.e.l. 100% YES YES Macedonia Mercator - S DOO 100% YES YES Serbia Mercator – H d.o.o. 99.9% YES YES Croatia M – Nepremicnine d.o.o. 100% YES YES Slovenia Mercator – Makedonija d.o.o.e.l. 100% YES YES Macedonia Mercator - BH d.o.o. 100% YES YES Bosnia and Herzegovina M - BL d.o.o. 100% YES YES Bosnia and Herzegovina M.COM d.o.o. 100% YES NO Slovenia Intersport H d.o.o. 100% YES NO Croatia Intersport S-ISI DOO 100% YES NO Serbia Intersport BH d.o.o. 100% YES NO Bosnia and Herzegovina Mercator IP d.o.o. 100% YES YES Slovenia Intersport ISI d.o.o. 100% YES YES Slovenia Mercator - A sh.p.k. 100% YES YES Albania Modiana d.o.o. 100% YES YES Slovenia Modiana d.o.o. 100% YES NO Croatia Mercator - K l.l.c. - in liquidation 100% YES NO Kosovo Modiana DOO 100% YES NO Serbia Modiana d.o.o. 100% YES NO Bosnia and Herzegovina Mercator - CG d.o.o. 100% YES YES Montenegro M - Tehnika d.d. 100% YES NO Slovenia M-Energija d.o.o. 100% YES YES Slovenia Mercator – Mex d.o.o. 51% YES NO Montenegro M – Rodic DOO 88% YES NO Serbia Interler d.o.o. 97.6% YES NO Slovenia ETA d.d. 100% YES NO Slovenia Evolution d.d. 100% YES NO Slovenia En Plus d.o.o. 100% YES NO Slovenia 015 Products & Services

Poslovni Sistem Mercator d.d. specialises in the wholesale  technical and basic building materials: do-it-yourself, util- and retail of consumer goods, which include: ity goods, tableware  basic goods, special foods, sweet and salty foods, alco- holic beverages, non-alcoholic beverages, pet products.  furniture, lighting, floor trimmings

 fresh meat, frozen food, fresh bread and pastries, fresh It produces: fruit and vegetables  meat products  sterilised and pasteurised vegetables, mustard and dress-  non-food products: cosmetics, hygiene products, sanitary ings products, baby cosmetics and other products, cleaning,  fruit, compote, and frozen food washing, and refreshment products, housework goods,  production of fruit concentrates magazines, newspapers, brochures, kits, books, colouring  bread and pastry books, cards, tobacco and tobacco-related goods  coffee roasting, cocoa, cereal products, dressings, and powder products  textiles and clothing

Capacity

Poslovni Sistem Mercator d.d. is headquartered in Ljubljana, In 2012 the company opened nine stores in Slovenia, five the capital of Slovenia. stores in Croatia, six stores in Serbia, 31 stores in Bosnia and Herzegovina, two stores in Montenegro and one in Bulgaria. In 2013 Poslovni Sistem Mercator d.d. opened 24 new stores, of which six in Slovenia, two in Croatia, 10 in Serbia, two in In 2011 Poslovni Sistem Mercator d.d. the company opened Bosnia and Herzegovina, and four in Montenegro. 96 new retail units in six countries. Last updated on July 15, 2014.

Mercator Group's Number of Stores by Country Country 2013 2012 2011 Slovenia 920 952 988 Serbia 246 199 168 Croatia 242 244 247 Bosnia and Herzegovina 112 113 86 Montenegro 86 85 87 Albania - 3 5 Bulgaria - 4 5

Market & Sales

Mercator is a group of companies led by Poslovni Sistem  Mizica, pogrni se! (ready to serve or partially ready food) Mercator d.d., which manages retail in the Ljubljana region and employs all the administrative and managerial work-  Zdravo zivljenje (healthy food products) force of the Group. The other companies in the Group are mostly regional retail centres.  Pekarna Grosuplje (bakery)

The company owns the trade marks:  Tvorec Trebnik (special body care)  Mercator (food products, cleaning products for home, etc.)  Premium.

 M Linija (basic textile) In its 2014 edition Bulgarian business information provid- er SeeNews ranked Poslovni Sistem Mercator d.d. 20th in  Lumpi (product line for children up to 10 years of age) terms of total revenue among the 100 largest non-financial companies in southeastern Europe, and third in Slovenia  Popolna nega (cosmetics) (http://top100.seenews.com/). 016 In 2012 the external market sales accounted for 1.0% of Herzegovina, Croatia, Montenegro, Macedonia and Ser- the company’s net sales revenue. The company exported bia. to Austria, Bulgaria, Germany, Hungary, Italy, Bosnia and Last updated on Oct 27, 2014.

Mercator Group's Sales Share by Country Country 2013 2012 2011 2010 2009 Slovenia 56.5% 56.3% 57.9% 60.9% 66.0% Serbia 20.4% 19.5% 19.3% 17.2% 17.4% Croatia 12.3% 13.3% 14.3% 15.4% 11.8% Bosnia and Herzegovina 6.85% 6.8% 4.5% 4.5% 4.1% Montenegro 3.8% 3.7% 3.5% 1.8% 0.7% Bulgaria 0.08% 0.3% 0.3% 0.1% 0.03% Albania 0.01% 0.1% 0.2% 0.2% 0.02%

Investments Mercator Group's Investments in EUR mln Capital Long-term financial Year expenditures investments Total 2013 29 - 29 2012 67 - 67 2011 120 2.0 122 2010 116 - 116 2009 157 2.0 159 2008 298 15 313 2007 165 59 214 2006 149 117 267 2005 238 40 278

Mercator Group's Investment Share by Market Country 2013 2012 2011 Slovenia 57.66% 59.49% 32.20% Croatia 7.40% 5.33% 14.90% Serbia 23.47% 28.35% 42.80% Bosnia and Herzegovina 2.53% 5.04% 3.40% Montenegro 8.94% 1.46% 4.70% Macedonia - - 1.20% Bulgaria 0.01% 0.31% 0.70% Albania - 0.02% 0.10%

Last updated on Oct 27, 2014.

Employment 2013-12-31 11,521 Non-Consolidated 2013-12-31 22,922 Consolidated 2012-12-31 11,794 Non-Consolidated 2012-12-31 23,920 Consolidated 2011-12-31 12,034 Non-Consolidated 2011-12-31 24,266 Consolidated 017 Financial Year - end 2013-12-31 2012-12-31 2011-12-31 Type Consolidated Consolidated Consolidated Currency EUR EUR EUR Balance Sheet - Assets 1. Non Current Assets 1,775,014,000 1,833,965,000 2,026,555,000 2. Fixed (tangible) assets 17,407,000 18,387,000 1,906,018,000 3. Intangible assets 1,704,182,000 1,759,537,000 35,862,000 4. Other 3,611,000 4,263,000 3,450,000 5. Financial non current assets 32,284,000 34,559,000 68,451,000 6. Expenses for future periods and 17,530,000 17,219,000 12,774,000 Deffered taxes 7. Current Assets 528,827,000 545,509,000 587,104,000 8. Inventories 264,798,000 267,711,000 309,941,000 9. Trade and other receivables 234,927,000 230,484,000 247,464,000 10. Financial Assets 10,325,000 16,174,000 2,159,000 11. Cash and equivalents 18,505,000 24,677,000 27,540,000 12. Total Assets 2,303,841,000 2,379,474,000 2,613,659,000

Balance Sheet - Equity and liabilities 13. Total Equity 514,294,000 538,925,000 756,457,000 14. Capital 157,129,000 157,129,000 157,129,000 15. Reserves 486,115,000 536,925,000 595,116,000 16. Financial result -125,815,000 -152,020,000 4,212,000 17. Non current 414,935,000 661,380,000 906,070,000 18. Trade and other liabilities 850,000 2,462,000 2,369,000 19. Other financing 351,583,000 593,841,000 903,701,000 20. Current liabilities 1,374,612,000 1,179,169,000 951,132,000 21. Short term debts, including tax 686,507,000 672,858,000 583,982,000 liabilities and provisions 22. Other short term liabilities 688,105,000 506,311,000 367,150,000 Total Liabilities 1,789,547,000 1,840,549,000 1,857,202,000 23. Total Equity and Liabilities 0 0 2,613,659,000 24. Working capital -845,785,000 -633,660,000 -364,028,000 25. Number of Employees 22,922 23,920 24,266

Profit and Loss Account 26. Operating revenue 2,789,722,000 2,893,400,000 2,895,125,000 27. Net Sales Revenue 2,765,868,000 2,873,186,000 2,870,971,000 Export Turnover 0 0 0 28. Financial Revenue 8,025,000 6,805,000 5,699,000 29. Total Operating revenue 2,797,747,000 2,900,205,000 2,900,824,000 30. Operating Profit 35,973,000 0 76,841,000 301. Operating Loss 0 36,059,000 0 31. Extraordinary revenue 0 0 0 32. Total revenue 2,797,747,000 2,900,205,000 2,900,824,000 33. Profit before taxes 0 0 19,940,000 331. Loss before taxes 16,945,000 102,165,000 0 34. Operating Expenses 2,753,749,000 2,929,459,000 2,818,284,000 35. Cost of goods sold 0 0 0 36. Expenses for materials 0 0 2,704,991,000 37. Expenses for employees 0 0 96,855,000 38. Depreciation and Amortisation 0 0 16,438,000 39. Other 2,753,749,000 2,929,459,000 0 40. Financial Expenses 60,943,000 72,911,000 62,600,000 Interest Paid 0 0 0 41. Total operating expenses 2,814,692,000 3,002,370,000 2,880,884,000 42. Gross Profit 0 0 0 43. Extraordinary expenses 0 0 0 018 44. Total Expenses 2,814,692,000 3,002,370,000 2,880,884,000 45. Expenses for taxes -16,000 -5,659,000 7,451,000 46. Profit/ Loss after taxation -16,929,000 -96,506,000 12,489,000 47. Minority Interest 0 0 0 48. Net Profit for the period 0 0 12,489,000 481. Net Loss for the period 16,929,000 96,506,000 0 49. Financial Profit/ Loss -52,918,000 -66,106,000 -56,901,000 50. Extraordinary Profit/ Loss 0 0 0 51. Added value -16,000 -5,659,000 133,233,000

Key Ratios 52. ROE -3.29% -17.91% 1.65% 53. ROA -0.73% -4.06% 0.48% 54. ROIC -7.52% -14.02% -2.22% 55. OPERATING MARGIN 1.29% -1.25% 2.65% 56. NET PROFIT MARGIN -0.61% -3.36% 0.44% 57. TOTAL LIABILITIES/ASSETS 77.68% 77.35% 71.06% 58. TOTAL LIABILITIES/EQUITY 347.96% 341.52% 245.51% 59. CURRENT LIQUIDITY RATIO 0.38 0.46 0.62 60. QUICK RATIO 0.01 0.02 0.03 61. INVENTORY TURNOVER RATIO 0 0 0 62. FIXED ASSETS TURNOVER RATIO 1.56 1.57 1.42 63. TOTAL ASSETS TURNOVER RATIO 1.2 1.21 1.1 64. EBIT -69,863,000 -168,271,000 -36,961,000 65. EBITDA -69,863,000 -168,271,000 -20,523,000 66. NCF -16,929,000 -96,506,000 28,927,000

Financial Year - end 2013-12-31 2012-12-31 2011-12-31 Type Non-Consolidated Non-Consolidated Non-Consolidated Currency EUR EUR EUR Balance Sheet - Assets 1. Non Current Assets 1,450,007,000 1,497,712,000 1,668,991,000 2. Fixed (tangible) assets 935,671,000 955,377,000 1,003,846,000 3. Intangible assets 9,289,000 9,570,000 10,513,000 4. Other 3,145,000 3,462,000 3,450,000 5. Financial non current assets 485,179,000 512,334,000 639,588,000 6. Expenses for future periods and 16,003,000 16,041,000 11,594,000 Deffered taxes 7. Current Assets 284,601,000 293,537,000 346,089,000 8. Inventories 110,447,000 84,225,000 136,003,000 9. Trade and other receivables 154,814,000 138,532,000 165,285,000 10. Financial Assets 13,282,000 54,206,000 34,733,000 11. Cash and equivalents 6,018,000 11,611,000 10,068,000 12. Total Assets 1,734,608,000 1,791,249,000 2,015,080,000

Balance Sheet - Equity and liabilities 13. Total Equity 0 0 811,485,000 14. Capital 157,129,000 157,129,000 157,129,000 15. Reserves 423,893,000 471,129,000 628,771,000 16. Financial result 0 0 25,585,000 17. Non current 295,129,000 509,828,000 697,439,000 18. Trade and other liabilities 1,006,000 1,682,000 2,022,000 19. Other financing 242,007,000 436,941,000 695,417,000 20. Current liabilities 861,692,000 656,398,000 506,156,000 019

21. Short term debts, including tax 363,281,000 324,650,000 306,686,000 liabilities and provisions 22. Other short term liabilities 498,411,000 331,748,000 199,470,000 Total Liabilities 1,156,821,000 1,166,226,000 1,203,595,000 23. Total Equity and Liabilities 1,734,608,000 1,791,249,000 2,015,080,000 24. Working capital -577,091,000 -362,861,000 -160,067,000 25. Number of Employees 11,521 11,794 12,034

Profit and Loss Account 26. Operating revenue 1,488,947,000 1,439,037,000 1,590,591,000 27. Net Sales Revenue 1,464,319,000 1,425,391,000 1,579,669,000 Export Turnover 0 0 0 28. Financial Revenue 5,991,000 8,318,000 9,411,000 29. Total Operating revenue 1,494,938,000 1,447,355,000 1,600,002,000 30. Operating Profit 52,240,000 21,883,000 79,794,000 301. Operating Loss 0 0 0 31. Extraordinary revenue 0 0 0 32. Total revenue 1,494,938,000 1,447,355,000 1,600,002,000 33. Profit before taxes 0 0 38,827,000 331. Loss before taxes 36,117,000 81,017,000 0 34. Operating Expenses 1,436,707,000 1,417,154,000 1,510,797,000 35. Cost of goods sold 0 0 0 36. Expenses for materials 0 0 1,453,521,000 37. Expenses for employees 0 0 57,276,000 38. Depreciation and Amortisation 0 0 0 39. Other 1,436,707,000 1,417,154,000 0 40. Financial Expenses 94,348,000 111,218,000 50,378,000 Interest Paid 0 0 0 41. Total operating expenses 1,531,055,000 1,528,372,000 1,561,175,000 42. Gross Profit 0 0 0 43. Extraordinary expenses 0 0 0 44. Total Expenses 1,531,055,000 1,528,372,000 1,561,175,000 45. Expenses for taxes -518,000 -6,272,000 7,496,000 46. Profit/ Loss after taxation -35,599,000 -74,745,000 31,331,000 47. Minority Interest 0 0 0 48. Net Profit for the period 0 0 31,331,000 481. Net Loss for the period 35,599,000 74,745,000 0 49. Financial Profit/ Loss -88,357,000 -102,900,000 -40,967,000 50. Extraordinary Profit/ Loss 0 0 0 51. Added value -518,000 -6,272,000 96,103,000

Key Ratios 52. ROE 0.00% 0.00% 3.86% 53. ROA -2.05% -4.17% 1.55% 54. ROIC -14.26% -16.21% -0.14% 55. OPERATING MARGIN 3.51% 1.52% 5.02% 56. NET PROFIT MARGIN -2.43% -5.24% 1.98% 57. TOTAL LIABILITIES/ASSETS 66.69% 65.11% 59.73% 58. TOTAL LIABILITIES/EQUITY 0.00% 0.00% 148.32% 59. CURRENT LIQUIDITY RATIO 0.33 0.45 0.68 60. QUICK RATIO 0.01 0.02 0.02 61. INVENTORY TURNOVER RATIO 0 0 0 62. FIXED ASSETS TURNOVER RATIO 1.01 0.95 0.95 63. TOTAL ASSETS TURNOVER RATIO 0.84 0.8 0.78 64. EBIT -124,474,000 -183,917,000 -2,140,000 65. EBITDA -124,474,000 -183,917,000 -2,140,000 66. NCF -35,599,000 -74,745,000 31,331,000 020 INTERVIEW Nestle Bulgaria sees 2014 profit exceeding projections

A total of 30% of Nestle Bulgaria’s Peralejo also said that the company turnover is generated by from ex- intends to keep its investments in ports, he added. 2014 at $15 million in keeping with other years. Overall, the food and beverage market in the country could be cat- Earlier this year, Nestle Bulgaria egorised as polarised because sales invested 12.8 million levs in the reno- in the affordability and high-end vation of a production line for a new categories are growing, according to type of KitKat sweet at one of the Peralejo. company’s plants in the country.

“What is suffering more is the port- “We are not planning new lines for folio in between,” he added. the time-being. So the investment will be mainly in maintenance and Luckily, the affordability category innovation and also in the ice-cream Juan Carlos Peralejo, accounts for 52% of the company’s factory,“ he said. Nestle country manager for Bulgaria portfolio. The company will also keep invest- While Nestle Bulgaria operates in ing in training its employees, both in The Bulgarian unit of global food a total of 8 segments, the market production and in management. giant Nestle expects to end 2014 in shares of just seven of them are line with its expectations and even measured. The company is among Nestle entered the Bulgarian market exceed its profitability projections the market leaders in them all. 20 years ago. It operates a chocolate slightly, Nestle’s country manager for factory in Sofia and another one for Bulgaria said. Nestle Bulgaria expects to be a ice-cream production in Varna, on market leader in four segments it the Black Sea coast. It employs 1,500 Nestle Bulgaria’s revenues from op- operates in (coffee, culinary, break- people. erations are expected to reach 330 fast cereals and ice cream) in 2014 million levs ($211 million/168.7 million and to rank second in another three Among Nestle Bulgaria’s most well- euro) in 2014, Juan Carlos Peralejo (confectionery, infant nutrition and known brands are the beverages told SeeNews on the sidelines of a pet food). Nescafe, Nesquik and Nestea, break- media event in Sofia. fast cereals nesVita and Fitness, Nestle’s ice-cream business in “In the total seven [segments] we instant soups and stocks Maggy, Bulgaria, which is a significant part have more than 40% market share in chocolate products Nestle, LZ, Mura of the company’s operations, has [terms of] value, which means that and KitKat, and ice-creams Boss, been undermined by this year’s bad out of 100 levs, more than 40 are Magnum, Familia and Aloma. weather. spent on Nestle products,” Peralejo said. Nestle products can be found at “I am very optimistic about next more than 60,000 sales points in year [in terms of sales]. We have a Compared to last year, the company Bulgaria. balanced portfolio and if we don’t is expected to post a slight increase (1 euro=1.95583 Bulgarian levs) sell ice-cream, we sell coffee or con- in market share even though it is fectionery and we also have made not easy for a company as large as http://wire.seenews.com/news/ very good progress in our export Nestle to have a variance in mar- interview-nestle-bulgaria-sees- business,” Nestle Bulgaria’s country ket share, according to the country 2014-profit-exceeding-projec- manager said. manager. tions-446915 021

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Perceptica is a member of AMEC – the global communications measurement and evaluation organisation. 022 Latest fmcg news Slovenia gets multiple non-binding The transaction is expected to be closed soon, Blackstone bids for food co Zito noted. United Biscuits is the sixth largest biscuits maker in the LJUBLJANA (Slovenia), November 6 (SeeNews) - Slov- world. It has 14 factories, of which 11 are in Europe. The enian state holding firm SDH said it has received multiple other three are in Nigeria, Saudi Arabia and India, employ- non-binding bids for a 51.55% stake in food company Zito ing a total of 7,171 people. The company generated sales Group of 1.146 billion British pounds ($1.834 billion/1.466 billion The deadline for the submission of indicative offers by euro) in 2013, Yildiz Holding added. interested parties expired on October 31. Yildiz Holding has agreed to pay 2.0 billion pounds for SDH, which is coordinating the two-round sale process, United Biscuits, the company’s chairman Murat Ulker said in a statement investors that have submitted the said as quoted by Turkish news agency Anadolu Ajansi on most economically advantageous offers and at the same Tuesday, confirming media reports. time have shown the financial and legal abilities to com- Ulker has said in a press conference that Yildiz Holding plete the acquisition will be invited to the second phase will finance 60% of the acquisition from its own sources of the tender. and will use a loan for the remaining 40%, according to The consortium of shareholders that are selling Zito the news agency. shares comprises Modra Zavarovalnica, SDH, KD Kapital, (1 euro = 0.7818 British pounds) Adriatic Slovenica, KD Dividendni, KD Galileo, KD Rastko and NLB Funds. http://wire.seenews.com/news/update1-turkeys-yildiz-hold- Zito Group posted an 11% increase in its net profit to ing-to-acquire-british-co-united-biscuits-446650 602,000 euro ($753,000) in the first half of 2014 as consoli- dated net sales edged up 0.3% to 53.7 million euro. Croatia’s Atlantic 9-mo cons net profit The main line of business of Ljubljana-based Zito Group up, cuts FY sales target is flour milling and production of bread and other bakery products, confectionery and pasta. It also produces frozen ZAGREB (Croatia), October 30 (SeeNews) - Croatia’s foods, rice, tea and spices. Atlantic Grupa said its consolidated net profit rose 12.37% Zito is among the 15 companies that the Slovenian govern- to 222.6 million kuna ($36.5 million/29.1 million euro) in ment listed in mid-2013 for privatisation. the first nine months of 2014. ($=0.7999 euro) Atlantic Grupa is a regional distributor of fast-moving consumer goods and a producer of functional foods and http://wire.seenews.com/news/slovenia-gets-multiple-non- supplements. It also owns a pharmacy chain in Croatia. binding-bids-for-food-co-zito-446998 The company said in a bourse filing it has cut its full-year consolidated sales guidance and now expects sales to Turkey’s Yildiz Holding to acquire British grow by 4.3%, down from the 7.7% margin forecast ear- co United Biscuits lier, to 5.22 billion kuna. The sales outlook has been downgraded due to a dou- ISTANBUL (Turkey), November 4 (SeeNews) – Turkish con- bling of price discounts prompted by extremely aggres- glomerate Yildiz Holding said it has agreed to acquire Brit- sive price competition as well as due to the record floods ish biscuits and snacks maker United Biscuits from private that hit the region in May that depressed consumption; equity funds managed by Blackstone and PAI Partners. adverse weather conditions during the summer tourist The acquisition will make Yildiz Holding the third largest season which dampened beverage consumption; and the biscuits maker in the world and will enhance its position continued depreciation of the Russian ruble and Serbian in the biscuits and snacks market, the Turkish company dinar, among other factors, the company said. said in a statement. At the same time, Atlantic Grupa said the forecast for Yildiz Holding said it had vied with U.S. food company a growth of 8.3% to 460 million kuna in full-year earnings KelloggCo and Canadian pension fund manager Ontario before interest and taxes (EBIT) has been affirmed. Teachers’ Pension Plan for United Biscuits. Financial de- The company’s total consolidated income rose 0.97% to tails of the deal were not disclosed. 3.84 billion kuna in the nine months through September, Yıldız Holding intends to apply the same independent while total expenses climbed to 3.58 billion kuna from management model to United Biscuits as to its chocolate 3.55 billion kuna. subsidiary Godiva, acquired in 2007. Consolidated earnings before interest, taxes, deprecia- “We look forward to being part of Yildiz as we continue tion and amortisation (EBITDA) rose 0.7% to 378.5 million to fulfil our growth potential both in the UK and abroad kuna through September. where we are looking to expand our share of the biscuit Capital expenditures amounted to 104.4 million kuna, and snacking markets and where there is huge potential up from the 67.1 million invested in the same period last for all our brands,” United Biscuits’ CEO Martin Glenn said year. in a separate statement issued by Blackstone on Monday. The largest sales growth through September was 023 achieved on the Slovenian market (19.8%) which rep- company will issue at least 2,325,582 ordinary registered resents 15.2% of total sales. Croatia is the group’s larg- no par value shares in dematerialised form with a notion- est market in terms of sales with a 25.7% share and al value of 41.73 euro and an issue price of 86 euro each. with growth of 6.4% in the first nine months of 2014. The capital increase will be considered successful if all The group’s sales in Russia and the Commonwealth of 2,325,582 shares are paid up for. Independent States recorded growth of 6.2% through ($=0.7898 euro) September, making up 5.9% of total consolidated sales. (1 euro=7.66 Croatian kuna) http://wire.seenews.com/news/slovenias-mercator-opens- subscription-for-new-share-issue-445109 http://wire.seenews.com/news/update-1-croatias-atlantic- 9-mo-cons-net-profit-up-cuts-fy-sales-target-445836 Bosnia’s Bingo notifies anti-trust body of plans to acquire Intermarche unit Croatia’s Podravka 9-mo net profit down 15% SARAJEVO (Bosnia and Herzegovina), October 24 (SeeNews) - Bosnian retailer Bingo has notified to the ZAGREB (Croatia), October 30 (SeeNews) - Croatian food, local anti-trust authorities its plans to take over C.D.E.B. beverage and drug producer Podravka said its net profit Trgovacko Drustvo, a unit of French retailer Intermarche, fell to 83.5 million kuna ($13.7 million/10.9 million euro) official data indicated. in the first nine months of 2014 from 98.7 million kuna a Intermarche operates under the Interex brand in the year earlier. Balkan state. The company’s total revenue decreased to 2.63 billion Bingo also plans to acquire local real estate firm European kuna in the nine months through September from 2.69 Retail Company, a document posted on the website of billion kuna in the same period last year while total Bosnia’s Competition Council showed. expenses edged down 1.93% to 2.53 billion kuna, Podravka In September, local media reported that the local retailer said in a statement. plans to take over in the next couple of months 25 retail Podravka continued to restructure its business operations units from Intermarche and that there was market talk in 2014 by closing the low-profit segment of the bakery that Bingo, owned by Bosnian businessman Senad Dzam- in early April. At the end of last year the company dis- bic, was also eyeing around 20 retail units operated in the continued operations on the fresh meat and frozen food country by ailing Slovenian company Tus. segments. The planned business concentration will have an impact In April, contracts were signed on the transfer of trade- on the retail trade with foodstuffs and consumer goods in marks, recipes and equipment and on acquiring the Bosnia, the document showed. business of production and sales of canned meat pates Unofficial estimates that have appeared in local media and canned meat products between Podravka and PIK put the price tag of the acquisition of the Interex super- Vrbovec. These contracts have enabled Podravka to take markets at around 30 million euro ($38 million), similar to over the canned meat programme and brands of PIK the amount that Bingo was reportedly ready to pay for Vrbovec for further production and sales in all markets, the Tus stores. the company added. According to Bosnian media, Tuzla-based Bingo, set up in (1 euro=7.66 Croatian kuna) 1993, operates around 100 stores, ranking as the country’s second largest retailer behind recently merged peers http://wire.seenews.com/news/croatias-podravka-9-mo- Konzum and Mercator. net-profit-down-15-table-445884 If Bingo goes through with its reported acquisition plans, the move would add to the recent shakeup of Bosnia’s Slovenia’s Mercator opens subscription retail landscape which saw Belgian food retailer Delhaize for new share issue Group exit the market this summer, selling its 39 stores there to Tropic Group B.V. LJUBLJANA (Slovenia), October 27 (SeeNews) – Slovenian retailer Mercator said subscription for its new share issue, http://wire.seenews.com/news/bosnias-bingo-notifies-anti- which is part of a planned 97 million euro ($123 million) trust-body-of-plans-to-acquire-intermarche-unit-444858 capital hike, started on Monday and will close on Novem- ber 15. Podravka appoints new director Only Agrokor Investments, a unit of Croatian food-to-re- for SEE markets tail concern Agrokor which owns 80.75% in Mercator, will be eligible to take part in the subscription, Mercator said ZAGREB (Croatia), October 16 (SeeNews) - Croatian food, in a bourse filing. beverage and drug producer Podravka said on Thursday Mercator said last week it will raise its capital to 254.2 it has appointed Milan Tadic as its new director for the million euro through in-kind and cash contributions. The Southeast European markets. 024 Latest fmcg news Tadic will be in charge of the markets of Slovenia, Bosnia EBRD mulls lending 23 mln euro to and Herzegovina, Macedonia, Serbia, Montenegro and Romania’s ETI European Food Industries Kosovo, Podravka said in a bourse filing. BUCHAREST (Romania), October 3 (SeeNews) - The Euro- http://wire.seenews.com/news/podravka-appoints-new- pean Bank for Reconstruction and Development (EBRD) director-for-see-markets-443443 said it is considering providing a long-term loan of up to 23 million euro ($29.1 million) to ETI European Food Indus- EBRD provides up to 3.0 mln euro tries, a Romanian subsidiary of Turkey’s Eti Gida Sanayi ve to Macedonian food co Vitaminka Ticaret A.S. The loan will finance capital expenditures and working SKOPJE (Macedonia), October 17 (SeeNews) – The Europe- capital needs related to the construction of a greenfield an Bank for Reconstruction and Development (EBRD) said confectionery factory near the southwestern Romanian on Friday it is extending an up to 3.0 million euro ($3.8 town of Craiova, the EBRD said in a statement. million) loan to Macedonian food company Vitaminka to The total cost of the project stands at 39 million euro. procure new energy-efficient equipment and modernise The EBRD board is scheduled to review the loan on No- two production facilities. vember 11. “The loan will strengthen Vitaminka’s competitiveness Eti Gida Sanayi ve Ticaret, founded in 1962, is one of the in local and regional markets, increase production line leading confectionery producers in Turkey. efficiency and significantly reduce operational costs,” the ($ = 0.7909 euro) EBRD said in a statement. Financing for the project comes under the EBRD’s Lo- http://wire.seenews.com/news/ebrd-mulls-lending-23-mln- cal Enterprise Facility, a programme combining finance euro-to-romanias-eti-european-food-industries-441352 and technical assistance, focused on strengthening the private sector by providing long-term financing for Croatia’s Cromaris plans investment small and medium-sized enterprises in the Balkans, push to meet export demand Turkey and the southern and eastern Mediterranean region. ZAGREB (Croatia), October 2 (SeeNews) - Croatian fish Vitaminka, which specialises in chocolate confectionery farming and processing company Cromaris plans to invest and crisp snacks, is based in the city of Prilep, in central 200-300 million kuna ($33-$50 million/26.2-39.3 million Macedonia. euro) in new output capacity in a bid to meet growing de- ($=0.7844 euro) mand abroad, the company’s parent, diversified conglom- erate Adris Grupa, said. http://wire.seenews.com/news/ebrd-provides-up-to-3-0- Retailer Carrefour recently put Cromaris products on the mln-euro-to-macedonian-food-co-vitaminka-443597 shelves of its stores in Italy, Adris Grupa said in a response to a SeeNews inquiry. Bulgarian food co Vernada opens 1.6 mln Cromaris is planning to more than double fish production euro plant - econ min during the next six years from the current output capacity of around 6,500 tonnes. SOFIA (Bulgaria), October 13 (SeeNews) – Bulgarian food The company plans to raise its production capacity to producer Vernada has opened a 2.5 million lev ($1.6 mil- 10,000 tonnes of sea breams and seabass annually by lion/1.3 million euro) plant in the village of Gorna Rositsa, 2020 while this year’s plans include the production of over in north-central Bulgaria, the country’s economy ministry 5,000 tonnes. said. Cromaris will stay profitable this year after managing to The investment was co-financed with EU funds, while book operating profit in 2013 for the first time in its history, the remainder of the financing was provided by Vernada’s Adris said, adding revenue is set to rise by up to 50% in 2014. Romanian partner, Ocean Fish, the ministry said in a state- Adris Grupa also spans tourism, cigarette production and ment issued after the opening ceremony. insurance. The new plant has a monthly production capacity of 45 (1 euro=7.6394 Croatian kuna) tonnes of packaged salads. The output will be exported mainly to neighbouring Romania with exports to Israel set http://wire.seenews.com/news/croatias-cromaris-plans- to start soon. investment-push-to-meet-export-demand-441302 Vernada, which started operations in 2007, produces hummus salads with organic ingredients. Croatia’s Adris Grupa mulls possible Gorna Rositsa is located in the Sevlievo municipality. partner for tobacco unit http://wire.seenews.com/news/bulgarian-food-co-verna- ZAGREB (Croatia), September 23 (SeeNews) - Croatian da-opens-1-6-mln-euro-plant-econ-min-442657 diversified conglomerate Adris Grupa said oit is consider- YOU HAVE THE WATTS WE HAVE THE WHATS. YOUR PERSONAL NEWSROOM FOR THE POWER MARKET

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Visit: powermarket.seenews.com 026 Latest fmcg news ing finding a possible partner for its tobacco unit Tvornica Croatian retailer Plodine hikes cap Duhana Rovinj (TDR) in a bid to ensure jobs and produc- by 40 mln kuna (5.2 mln euro) tion operations stay in Croatia. In the long run, on the backdrop of the highly concen- ZAGREB (Croatia), September 22 (SeeNews) - Croatian trated global tobacco industry, Adris would not be able to retailer Plodine said on Monday it has increased its capital add significant value to its tobacco business, the company by 40 million kuna ($6.7 million/5.2 million euro) to 170 said in a filing to the Zagreb bourse issued in response to million kuna. a report published by local media, claiming it had decided Plodine said in a bourse filing the capital increase was to sell TDR. performed through the reinvestment of earnings. Earlier in the day, news outlet Tportal.hr reported that The Rijeka-headquartered retailer, wholly-owned by local Ante Vlahovic, the head of the Rovinj-based conglomer- businessman Mile Curkovic, operated 66 supermarkets ate, had made a strategic decision to sell TDR by the end and eight hypermarkets at the end of June. of 2014. (1 euro=7.6242 Croatian kuna) The media, quoting unofficial sources familiar with the http://wire.seenews.com/news/croatian-retailer-plodine- matter, tipped Japan Tobacco International (JTI) as one of hikes-cap-by-40-mln-kuna-5-2-mln-euro-439660 the possible candidates to take over TDR. Adris Grupa also spans tourism, fish farming and insur- Search for strategic partner ance. for Croatia’s Badel 1862 fails TDR is an attractive acquisition target because it holds a relatively large market share in the region of Southeast ZAGREB (Croatia), September 8 (SeeNews) - Croatian Europe (SEE), whereas big multinationals are still trying to alcoholic and soft drinks producer Badel 1862 said that the get a hold of that chunk of the market, equity analyst at sole binding offer for a strategic partner for the company Erste Research Anto Augustinovic told SeeNews over the has been rejected. phone. In late April, the Croatian firm invited interested investors “Having in mind that the tobacco industry is currently to file expressions of interest for a strategic partnership dominated by four big companies – JTI, British American and recapitalization. Tobacco, Philip Morris and Imperial Tobacco – any one of The offer, submitted by local company Princeps Promet, these could be a potential buyer of TDR.“ was deemed by the working group in charge of the proc- Although Adris is yet to officially confirm a decision has ess as incomplete in terms of fulfilling the mandatory been taken to exit the tobacco business, there was a lot of requirements and necessary documentation as well as noise coming from the company on the restructuring of proving the financial capabilities and investment poten- its operations and a possible sale of TDR could mean that tial of the bidder, Badel 1862 said in a filing to the Zagreb the group is shifting its focus to other segments of its bourse. business portfolio, Augustinovic said. The working group has concluded that Badel 1862 will Adris recently acquired a majority stake in insurer Croatia require a capital hike as part of pre-bankruptcy proceed- Osiguranje and announced plans to become one of the ings in order to ensure sustained liquidity and capital leaders in the insurance business in SEE. This can hardly be adequacy, the statement said. achieved through organic growth and the company will Zagreb-based Badel 1862, 67.68%-owned by the Croatian most probably be active on the mergers and acquisitions government, posted a loss of 94.2 million kuna ($16 mil- front when it comes to this business segment, the official lion/12.4 million euro) on total revenues of 308.2 million added. kuna in 2013. TDR, which holds market-leading shares of 62% and 30%, (1 euro=7.6236 Croatian kuna) respectively, in Croatia and Bosnia, posted a drop of 17.8% in cigarette sales to 9.5 billion pieces last year when as http://wire.seenews.com/news/search-for-strategic-part- much as 65% of sales were generated abroad. ner-for-croatias-badel-1862-fails-437755 The company’s plant in Rovinj has an annual production capacity of 20 billion cigarettes. In September 2013, TDR launched a 30 million euro ($38.7 million) factory in the Iranian city of Sari with an annual output capacity of 6.0 billion cigarettes. Adris Grupa was trading up 4.06% at 385.02 kuna ($65.1/50.5 euro) by 1501 CET on the Zagreb bourse on Tuesday. ($=0.7757 euro) http://wire.seenews.com/news/update-2-croatias-adris- grupa-mulls-possible-partner-for-tobacco-unit-439903 ... AND WE HAVE SO MUCH MORE TO OFFER.

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